2016RetailersSuppliers Increased by 10% or more212 Increased by between 5-10%33 Increased by up to 5%257 Stayed the same4026 Fallen by up to 5%1716 Fallen by between 5-10%313 Fallen by 10% or more1023 In the 5 years to 2015, 52% of suppliers reduced their distribution centre stock levels while only 22% increased their stock. 26% of suppliers had no change in stock levels. In the same period, 40% of retailers had no change in stock levels, while 30% of suppliers increased stock levels and the same proportion saw a decrease. The majority of retail supply chains have between one and four weeks of stock, with suppliers tending to hold higher levels of stock than retailers. For fresh produce, stock levels can sometimes be only 24 hours or less.
As retail supply chains become more responsive, lead times9 are reducing and order frequencies are increasing. Retailers are increasingly moving products into their stockless networks, managing products from across their ranges in the same way as the fresh and produce categories. The impact of the current economic climate on consumer spending has helped drive this change as retailers look at ways of funding price cuts; supply chain operating costs and working capital tied up in inventory has provided such an opportunity. Source: IGD Research, 2015. 9 The time between an order being placed and delivery.