What Walmart's presence will do to the retail supply chain in South Africa
2011/07/07
The real impact of the Walmart acquisition of Massmart, and its new business model, will be on supply chain costs. The recent publication of the Barloworld Logistics’ sponsored Supplychainforesight research study produced an intriguing view of the FMCG/Retail industry’s supply chain.
This independent study samples the opinions on supply chain strategy of hundreds of senior executives in global South African companies each year.
The presence of Walmart in the South African retail landscape has already begun to ring in changes – mostly focused on a brewing price war which, it is reasoned, can only benefit the SA consumer. Massmart’s ability to cut prices comes from the widely publicised buying power its American parent can exert on suppliers to leverage better deals. This is turn places competitive pressure on Massmart's retail competitors who are already asking their suppliers to join the party.
http://www.supermarket.co.za/news_detail.asp?ID=2989
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