Store Brands - May 2018 - 43

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The time is ripe for retailers to strengthen their own-brand fresh
organic and all-natural selections By Nevenka Jevtic
Retailers of private brands should scrutinize
nearly every element of the supply chain for
inefficiencies to reduce costs

"Pressure." Remember that Billy Joel tune
from the 1980s? Retailers of private brands are
still singing it today, but they have altered it a bit.
They are now singing "Margin Pressure."
Jake Gilene, vice president of retail supply chain
solutions for Alpharetta, Ga.-based CHEP, says margin
pressure is the biggest challenge that retailers of private
brands are facing in the supply chain.
"Consumer behavior is ever-changing, and retailers have to become very price sensitive to maintain
loyalty, even while raw materials and other costs are
rising," Gilene says.
Changes in the supply chain are also creating
other challenges, Gilene adds.
"Retailers are focused on building more efficient
networks, accelerating product cycles and reducing
inventory levels while at the same time trying to ensure
that their shoppers get what they want, where and when
they want it," he says. "You can imagine the incredible
complexity this creates."
Today's consumers can also find comparable
branded products in more places, both online and in
different store formats, Gilene states.
"So the ultimate challenge for private brand retailers

is to deliver on the price leadership expected of them, while raising
the quality and availability that helps drive consumer loyalty," he adds.
Jeff Liebesman, CEO of Orlando-based iGPS Logistics, which
offers supply chain services, says the race for greater efficiency and
cost-saving measures speeds up as manufacturing and transportation
technology continues to advance, .
"To get the edge over competitors in total cost of business,
retailers have to take a wider, more comprehensive view of the
supply chain," Liebesman adds. "Whereas in the past it may have
been sufficient to seek out the cheapest and most barebones
transportation services, in today's market the savings from that
approach just isn't enough."
Retailers of private brands need to analyze their supply chain
as a whole to identify the best and most effective practices,
Liebesman stresses.
"This is not to mention the market's continued globalization,
which has significantly increased competition," he adds. "Just
about every element of the supply chain needs to be scrutinized
for inefficiencies and new cost-saving measures."
Randy Fields, CEO of Park City Group/ReposiTrak in Salt
Lake City, Utah, says another challenge for retailers has to do
with the Food Safety Modernization Act (FSMA), which gives the
Food and Drug Administration (FDA) new authority to regulate the way foods are grown, harvested, processed and shipped.
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Table of Contents for the Digital Edition of Store Brands - May 2018

Contents
Store Brands - May 2018 - Cover1
Store Brands - May 2018 - Cover2
Store Brands - May 2018 - 3
Store Brands - May 2018 - Contents
Store Brands - May 2018 - 5
Store Brands - May 2018 - 6
Store Brands - May 2018 - 7
Store Brands - May 2018 - 8
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Store Brands - May 2018 - Cover3
Store Brands - May 2018 - Cover4
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