Printer Friendly

NEW COOPERS & LYBRAND SURVEY SHOWS U.S. MANUFACTURERS AND RETAILERS SLOW TO IMPLEMENT 'QUICK RESPONSE'; SURVIVAL MAY BE AT STAKE FOR SOME

NEW COOPERS & LYBRAND SURVEY SHOWS U.S. MANUFACTURERS AND RETAILERS SLOW
 TO IMPLEMENT 'QUICK RESPONSE'; SURVIVAL MAY BE AT STAKE FOR SOME
 NEW YORK, April 6 /PRNewswire/ -- A relatively new approach to retailer-manufacturer cooperation -- Quick Response -- is catching on, but not fast enough for some, according to a new Coopers & Lybrand survey.
 Those who learn the game well, American retailers and the consumable product manufacturers who supply them, will be the strong survivors. Others run the risk of falling by the wayside, according to Henry J. Johansson, Coopers & Lybrand's manufacturing industry practice leader.
 Quick Response, or QR, is to the retail supply chain what Just-in- Time has become to manufacturing, a method for rapidly responding to customer demands and improving operations and profitability. As a philosophy and a set of strategic initiatives, this revolutionary approach is a competitive weapon that is transforming retailers' and manufacturers' merchandising and logistics strategies.
 Yet, too many retailers and manufacturers are resisting implementing the teamwork and technology necessary to making QR work, according to Johansson.
 America's most successful retailers and manufacturers are already players, Johansson says. "The rest have to either come on board or they may not be around by the end of the decade."
 These and other conclusions are drawn from the latest Coopers & Lybrand "Made in America" survey, "Competing for the American Consumer: Partnering for Quick Response."
 The survey is based on in-person interviews with 210 general managers of strategic business units within consumable manufacturing companies and 79 general merchandising managers of consumable products retailers. The participating companies are U.S.-headquartered businesses with annual revenues greater than $500 million. The survey was conducted for Coopers & Lybrand by Louis Harris and Associates.
 Manufacturers Lag Retailers in Forming QR Partnerships
 Consumable products manufacturers, long accustomed to dominating the retailer-manufacturer relationship, are not adapting quickly enough to the new teaming opportunities of Quick Response, according to the survey.
 Three-quarters of the manufacturers surveyed claim they support Quick Response partnerships and 70 percent believe they are worth the cost and effort to implement.
 "However, the majority are not currently implementing many of the critical success factors," says Roger Bahnsen, a Coopers & Lybrand manufacturing consulting partner. For example, he said, some 70 percent of the retailers surveyed said that avoiding stock-outs is a key performance criterion, but only about 40 percent of the manufacturers see the importance of delivery performance.
 "Clearly, many manufacturers are not being responsive to one of their customers' most basic and important demands. And, as we've seen time and time again with American manufacturers, if they don't start listening to what their customers want, their customers will find someone else who will," Bahnsen observes.
 Bahnsen cites other examples of manufacturers not responding to retailers' needs. Only a third of the manufacturers are focusing on developing partnerships through shared promotions and merchandising, and a mere 14 percent are focused on supporting retailers' plans to target local market demographics.
 Leading Retailers Focus on Supplier Partnerships
 A new standard of profitability is driving American retailers. The keys are providing the highest levels of customer service, reducing investments in inventory, and lowering operating costs. Partnering with key suppliers enables retailers to improve all three, according to Robert Zimmerman, co-chairman of Coopers & Lybrand's Retail, Distribution and Apparel Manufacturing group.
 Yet, according to the survey, only the leading few retailers are aggressively implementing the necessary changes to their corporate cultures and operational environments. Most are focusing instead on short-term issues, the survey reveals.
 "The retailers' resistance to QR is alarming," explains Zimmerman. "A prevailing feeling seems to be that 'QR is great for the big guys, but I have more immediate problems.' This view is short-sighted and a prescription for failure."
 According to the survey, while most retail managers agree that forming QR partnerships improves their competitiveness, fewer than half are developing processes that are critical to supplier relations. And while 80 percent of the retailers questioned say that full partnership with their suppliers is the best way to grow their businesses, only 59 percent expect to make significant changes to their business processes. A surprisingly small 54 percent say they see the need to share data with their suppliers.
 "It's interesting that what the retailers say is important and what they're actually doing does not match," notes Zimmerman.
 One of the world's leading accounting, tax, management and benefits consulting firms, Coopers & Lybrand provides solutions for businesses in a wide range of industries. The firm offers its clients the expertise of more than 17,000 professionals and staff in 100 U.S. offices and more than 67,000 people in 117 countries worldwide.
 -0- 4/6/92
 /CONTACT: David L. Nestor, 212-536-2965, or Clare DeNicola, 212-536-1700, both of Coopers & Lybrand/ CO: Coopers & Lybrand ST: New York IN: REA SU: ECO


TQ-AH -- NY069 -- 5510 04/06/92 16:09 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 6, 1992
Words:801
Previous Article:QUALITY PRODUCTS, INC. ANNOUNCES $(.01) NET LOSS PER SHARE FOR THE YEAR ENDED DEC. 31, 1991
Next Article:ADVANCED TECHNOLOGY LABORATORIES NAMES DAVID M. PEROZEK PRESIDENT


Related Articles
Companies build global competitiveness.
GROWTH COMPANIES SLOWED IN 1991 BUT PLAN AGGRESSIVE STEPS TO REBOUND: COOPERS & LYBRAND
FOUR IN TEN GROWTH COMPANIES WITHSTOOD RECESSION, COOPERS & LYBRAND'S 'TRENDSETTER BAROMETER' FINDS
MARKET-DRIVEN COMPANIES SLOWED LESS BY RECESSION, COOPERS & LYBRAND'S 'TRENDSETTER BAROMETER' FINDS
MARKET-DRIVEN COMPANIES SLOWED LESS BY RECESSION, COOPERS & LYBRAND'S 'TRENDSETTER BAROMETER' FINDS
COOPERS & LYBRAND ANNOUNCES MAJOR APPOINTMENTS IN ITS RETAIL AND DISTRIBUTION INDUSTRY PRACTICE
AS TRADITIONAL MERIT INCREASES DECLINE, MORE COMPANIES CONSIDER PAY-FOR-PERFORMANCE PLANS IN 1994, NEW COOPERS & LYBRAND SURVEY SHOWS
GROWTH COMPANIES SAY DISINFLATION IS A PROBLEM, COOPERS & LYBRAND 'TRENDSETTER BAROMETER' SURVEY FINDS
ACCORDING TO COOPERS & LYBRAND SURVEY, SUPPLIERS BELIEVE AUTOMOTIVE PARTNERING IS PRICE DRIVEN, AND NOT BRINGING REWARDS
EXPERIENCE STILL COUNTS, EVEN AS COMPANIES SEEK TO CUT PAYROLL COSTS, NEW COOPERS & LYBRAND SURVEY SHOWS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters