Canadian Retailer - Fall 2013 - 14

RCC: GOLDEN ANNIVERSARY
To help celebrate Retail Council of Canada's 50th anniversary, Canadian Retailer presents a sixpart series that takes a look back at the ways the industry has evolved over the past half-century.
Through the lens of advertising and marketing, customer service, and more, we examine the historical points of evolution as well as identifying what the future might have in store for the industry.
Part five of the series focuses on the retail supply chain, the customer, and the advances
that have influenced its evolution.

Evolution of the retail supply chain
The way companies manufacture and get their products in the hands of their consumers has changed dramatically over the course of the past 50 years, helping drive
the expectations of today's consumer more so than any other industry innovation.
INNOVATIONS in the retail supply chain date back prior
to the formation of Retail Council of Canada, perhaps a
good 50 years prior. With that in mind, we take a look
back at the major developments that have happened con1913 The first moving assembly line
is installed by Henry Ford.

Impact on retail: Because of this innovation, mass production became
a reality for manufacturers and
retailers alike. Now, consumers
everywhere can enjoy the wonders
of the iPhone, or anything else for
that matter, in abundance.
The first Ocean Shipping
1956 Container was implemented at
the port of New Jersey.

Impact on retail: By the middle of
the twentieth century, goods could
be shipped and carried overseas en
masse without the traditional concerns of wear and tear and breakage.
The development and
60s implementation of Electronic
Data Interchange (EDI).

Impact on retail: For the first time,
retailers were able to transfer data
from one computer system to
another, enabling the exchange of
electronic business documents.
1962

The creation of the Bill of
Materials Processor by IBM.

Impact on retail: This IBM invention meant that, for the first time,
manufacturers could break down
their BOMs on a computer.

cerning the way retailers and manufacturers produce
product and get it into the marketplace, and the impact
that these innovations have had on the retail operation
through the years.

The Universal Product Code
1974 (UPC) is introduced at a Marsh's
Supermarket in Troy, Ohio.

The creation and implemen1987 tation of P&G's Continuous
Replenishment.

Impact on retail: As a result of this
innovation, retailers were suddenly
able to identify via a barcode a specific SKU, helping optimize inventory
and ordering processes.

Impact on retail: This system allowed
retailers to drive orders based on DC
withdrawals and sales data, rather
than actual sales, enhancing inventory and ordering processes.

80s

The introduction of Enterprise
Resource Planning (ERP).

Impact on retail: Integration between
retailers, the supply chain and manufacturers would never be the same,
effectively changing supply chain
communication and the way in which
product and inventory is tracked.
FedEx introduces the first near
1985
real-time Tracking System.

Impact on retail: Retailers and customers everywhere could now track
the status and information about
package delivery in real-time, from
end to end.
Walmart develops its Cross
1988
Docking system.

Impact on retail: Shortly after its
development, retailers everywhere
started to leverage this system
which enabled them to track goods
across all their distribution centres
and stores, optimizing operations.

The above innovations and inventions have no doubt
helped shape the retail supply chain as we know it today. Consumers know that they can browse product one
minute, order it online the next, track their purchase and

90s

The rise of the PC and Internet
began to pervade.

Impact on retail: This development
allowed for the integration of decision support systems on PCs as well
as collaboration platforms for companies with their trading partners.
1998

Amazon's Order & Delivery is
first introduced.

Impact on retail: Retailers began
rethinking their warehouse and
physical space portfolios, as this
proved that most orders could be
placed through wholesalers.
00s

A new turn in the tracking and
identification of product with
the development of RFID,
Track and Trace.

Impact on retail: Still untapped, the
opportunities associated with this
technology are boundless. Currently,
this innovation enables non-line of
sight-reading and tracing.

pick it up at a location of their choosing, often just hours
later. We've come a long way over the last half-century or
more, and in the process have also driven the heightened
expectations of today's consumer.

To learn more about RCC's impact on the industry over the past 50 years, download Celebrating Retail Council of
Canada: 50 Years of Evolution and Going Strong, at www.retailcouncil.org.

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Canadian Retailer - Fall 2013

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