Supermarket Perimeter - June 2023 - 10

of new product development and the shift to outsourcing as a way to
contain costs and keep up with evolving consumer preferences.
According to the report, nearly all (86%) professionals responsible
for food production and supply chain management feel overworked.
Plagued by staffing shortages and operational inefficiencies, more
brands are accelerating their use of contract manufacturers (co-mans).
They're also investing more in new product development (NPD),
embracing digital tools to automate manual processes, and expanding
their global footprint to diversify their supplier bases.
" At TraceGains, we're always taking the industry's pulse for new
insight and our latest survey shows that in 2023 brands are taking
proactive measures to remain competitive - whether that's on the
production side or R&D with new recipes, " said Gary Iles, the company's
senior vice president of marketing and business development. " Rather
than allow market conditions to overrun their business, more brands
are taking matters into their own hands. The future looks bright for
brands that remain focused on putting consumers first by bringing new
products to market faster and more cost-effectively. "
While private and national CPG brands rolled out fewer products
in 2020 and 2021, companies are jumpstarting R&D efforts after years
of supply chain disruptions. As many brands seek to regain a market
advantage and meet evolving consumer preferences post-pandemic,
TraceGains data confirm the expected rise in NPD.
Nearly two-thirds (64%) of respondents plan on investing more
in NPD over the next 12 months. More than two-thirds (67%) plan to
modify multiple recipes (six or more).
One-third (33%) anticipate the need to modify anywhere from
six to 20 recipes, representing a 6% jump from the TraceGains June
2022 survey.
Co-mans: faster to market, cost savings
After years of experimenting with co-manufacturers, brands have
embraced this model of food production following historic global
supply chain failures.
More than half (55%) now outsource more of their manufacturing
compared to three years ago. Three-fourths are using at least some
co-man resource, while almost half (47%) work with up to 10 co-mans.
Benefits of co-mans include: getting products onto shelves faster
(36%), saving costs on facilities and equipment (27%), and circumventing
labor shortages (13%).
Co-mans are a popular option for multiple functions: producing
finished goods (75%), manufacturing component materials (36%), and
sourcing and managing materials (20%).
While important competitive strategies, increasing NPD and working
with co-mans introduce a host of new challenges. Technology is key to
helping F&B brands unlock greater efficiency.
Dealing with never-ending paperwork (50%), complicated compliance
regulations (49%), and sourcing complications (42%) are the top three
stressors.
Nearly three-fourths (71%) of survey respondents say access to work
automation tools like real-time risk flagging and information sharing
are among the top two things that would help them improve their job
performance. Other desired improvements include transforming the
digital infrastructure (24%) and increasing headcount (22%).
10 - JUNE 2023
supermarketperimeter.com
High-tech labor savings
from Shopic
Wegmans is the latest retailer to trial Shop-E, an
instore shopping aid that not only makes shopping
more convenient but helps retailers save on labor.
Made by Israel-based Shopic, Shop-E is an
AI-powered, patent-pending clip-on device that turns
any standard shopping cart into a smart cart, a retail
media channel, and a data collector.
After a shopper gets their cart, they select a Shop-E
and attach it. The device automatically registers
everything they put in their cart, and when they're
done shopping, the total cost is displayed on the
Shop-E monitor - no scanning required. They then
pay on the same device before detaching the Shop-E
and taking their cart to their car.
" It's as simple and smooth as it gets, " according to
Shopic. " It uses computer vision to automatically
identify products inserted or removed, is fully transparent
and presents the bills constantly on a large
touch screen. "
The cart's screen is also a highly effective retail media
channel, reaching shoppers with personalized offers,
exactly where and when they select products.
With Shopic, shoppers' monthly spend is increased by
8%, according to the company.
" Shopic creates low friction, highly personalized, and
fully interactive shopping experiences in brick-andmortar
supermarkets. Bringing the advantages of
online commerce to physical stores, we also help grocers
optimize their store management with digitized
data analytics. "
Shopic's solution is easy to deploy at scale, simple to
operate and highly cost-effective. More than 96% of
shoppers love the experience, while basket sizes see
double-digit increases and shrinkage is sliced by more
than half, according to Shopic.
Shopic

https://www.prnewswire.com/news-releases/new-study-sheds-light-on-root-cause-of-higher-food-prices-measuring-true-impact-of-supply-chain-disruption-for-food-and-beverage-cpgs-301585961.html https://www.prnewswire.com/news-releases/new-study-sheds-light-on-root-cause-of-higher-food-prices-measuring-true-impact-of-supply-chain-disruption-for-food-and-beverage-cpgs-301585961.html http://www.supermarketperimeter.com

Supermarket Perimeter - June 2023

Table of Contents for the Digital Edition of Supermarket Perimeter - June 2023