Collaboration is Key to Private Label Success Says Oliver Wight

Supply chain experts, Oliver Wight, release a new white paper "Managing the Private Label Supply Chain."

Melbourne, Australia, August 08, 2013 --( With unprecedented growth in the Australian private label industry, supply chain design and optimization experts, Oliver Wight look at this hot topic in their latest white paper, "Managing the Private Label Supply Chain."

It is expected $31.8 billion will be spent on private-label grocery products in Australia by 2017-18, and most manufacturers are now either engaged in supplying private label products or wrestling with the decision as to whether they should introduce a private label strategy. This white paper considers the cost and effect on the supply chain - including pitfalls which many manufacturers miss - and uncovers the secrets to success.

“Private label has witnessed an unprecedented growth in the past decade, and now manufacturers are presented with an exciting opportunity to produce products for major retailers, taking advantage of their promotional and marketing activities, global expansions and steady customer demand. Entering into the private label supply chain however, is no mean feat and with the risk of leaving profit, power, and supply chain control at the mercy of powerful retailers, there is a lot at stake,” says author of the white paper, Oliver Wight Partner, Stuart Harman.

Harman has over 20 years experience helping organisations improve their supply chain processes. His work with some of the leading international private label suppliers, including Australian Pet Brands (formerly Bush’s Pet Foods), gives Harman an authoritative position to consider what organisations need to do to get private label manufacture right.

In the white paper Harman reflects on his personal experience, as well as using his industry knowledge to provide practical advice on how companies can best understand the dynamics and specifics of the supply chain, and reap the benefits from private label manufacture. Five of the most common profit leaks, and how organisations can avoid falling prey to them, is detailed. These include:

Not accounting for raw material price fluctuation
Delays in the product management process resulting in unbudgeted costs to meet launch deadlines
Obsolete stock following product deletions
Confusing the value proposition and thus business priorities
Lack of visibility over demand variations

“The solution to plugging potential profit leaks and more effectively meeting demand ultimately lies in greater collaboration between suppliers and retailers. With this at the heart of private label production, manufacturers have a real opportunity to achieve excellence, growth and ultimately success,” concludes Harman.
Oliver Wight
Yolanda Muser
+61 (0)3 9596 5830