Retailers in the South East are missing the opportunity to develop truly effective supply chain relationships, according to new research from Envirowise.

The government-funded programme found that while more than two thirds (74%) of retailers and wholesalers surveyed in the region said the management of their supply chain was ‘very important’ to them, 65% of the same group admitted to shopping around for cheaper suppliers during tough economic times.

Indeed, many pointed to a cost cutting response to economic pressure that is damaging to long-term relationships and competitiveness. During difficult periods 61% of respondents push suppliers to cut prices and 39% seek to reduce the number of suppliers they use. Few are putting in place the kind of collaborative programmes and processes that can underpin competitiveness and agility, particularly during tough economic times.

Envirowise Regional Manager for the South East, Katie Plummer, commented,  “These figures suggest that whilst retailers in the region are in regular contact with their suppliers – 57% making contact every day - they are not truly collaborating with them.  It could be said that they are relying on left brain (1) supply chain management, focusing their communication solely on logistics and process issues.”

By contrast, Envirowise has been working with a growing number of forward looking businesses across the UK to help develop a more collaborative ‘right brain’ (2) approach to supplier relationships which delivers real bottom line and competitive benefits, as well as a smooth running supply chain.

Katie Plummer continues, “Through the Envirowise Retail Therapy programme these companies have identified the benefit of taking a more creative approach to supply chain management. We are helping them by facilitating collaborative sessions between them and their suppliers to foster more innovative ways of working together.

“Retailers and their suppliers in the South East, whatever the size of the business, can learn from this creative approach and begin to look at ways of making their own supplier relationships stronger and more competitive, and not simply focus on cutting costs.”

Businesses can source free, confidential advice on improving their supply chain and becoming more resource efficient by visiting www.envirowise.gov.uk or by calling the Envirowise Advice Line on 0800 585 794.

- Ends -

(1) Logical, analytical, quantitative, fact-based, planned, organised, detailed 

(2) Holistic, intuitive, synthesising, integrating, emotional, interpersonal, feeling-based

About Retail Therapy

Retail Therapy is a scheme set up by Envirowise in 2002 to help retailers work better with their supply chains. Envirowise works with host companies which invite their key suppliers to discuss how they can improve business efficiency particularly through minimising waste and maximising cost savings. The forum encourages and equips companies to work together and find solutions to problems, for example re-use of packaging and more efficient use of utilities. All companies involved are offered a free and confidential FastTrack visit (Northern Ireland, Scotland and Wales only) from Envirowise to help identify potential savings.

The Retail Therapy scheme helps businesses in the supply chain realise the importance of complying with legislation and how good relationships minimise the risk of a break in the supply.

Host companies that have been involved in the scheme to date include Boots the Chemist, Center Parcs and the Co-operative Group.

To date it is estimated that the scheme has helped identify potential savings of £5.5 million.

About the research

Critical 2 carried out the research in September 2005, amongst retail and wholesale businesses employing between six and 250 people.

About Envirowise

Envirowise delivers a valuable programme of confidential advice to UK businesses. This advice enables businesses to improve profitability and reduce environmental impact.

Independent, practical and proven guidance is available through the Envirowise Advice Line, information resources and on site visits (Northern Ireland, Scotland and Wales only) delivered by a national team of expert advisors.  Each solution is driven by the specific needs of individual firms to genuinely improve their business practices, profitability and competitiveness.  Since 1994, Envirowise has helped UK industry save £1 billion.

The Envirowise programme is available to any UK business, completely free of charge.  For more information visit www.envirowise.gov.uk or call 0800 585 794.

For more information, please contact:

Kate Sturley or Rod Dennis at Harrison Cowley on 0117 929 2311