Supply Chain weekly wrap-up: 12/05/14 – 12/11/14

Delivery, delivery, delivery

In real estate, the three most important things are: location, location, location. In today’s online retail sector they are: delivery, delivery, delivery. Voxware surveyed 500 consumers and asked about their expectations for delivery of products ordered online or on a phone. According to the study, customers are 70% less likely to buy from the same online retailer again if it does not deliver products within two days of the promised delivery date. A significant number of respondents (16%) stated they would not return to an online retailer due to an incorrect delivery being made just one time. However, 54% of surveyed customers were willing to allow two or three incorrect or late deliveries before giving up on the retailer.

To read the full story, click here.

Big supply chain bullies

According to the Federation of Small Businesses (FSB), one in five small companies in the UK suffered from supply-chain bullying in the past two years. A common form of bullying is a request for suppliers to make cash payments to buyers in order to keep their contracts. Big companies with a high level of resources are able to put such pressure on small suppliers, which cannot afford to fight back. The FSB said about 260,000 small companies could be facing ‘pay-to-stay’ demands. The one thing that small businesses can do is expose the big bullies to their customers.

To read the full story, click here.

Expensive does not equal ethical

A recent Clean Clothes Campaign report busted a myth that high-end clothing manufacturers are using high profits to make their supply chain processes ethical. The reality is quite different: wages paid for workers in a factory where Hugo Boss, Prada, Versace, Dolce& Gabbana, and other luxury brand clothes are manufactured, are no higher than in plants where Primark, Asda and Tesco make their apparel. According to the report, in Croatia suppliers for Benetton and Hugo Boss pay one-third of a minimum living wage. And that is just one of many examples, which show that luxurious design and high price tags hide the same unethical working conditions and supply chain practices of cheap apparel manufacturers.

To read the full story, click here.

Have a nice weekend!