Channel Power Challenges in the Supply Chain

Shifts in supply chain channel power; from manufacture to retailer, wholesaler, and distributor, has also had and continues to have a profound effect on logistics.

As competition increases, shake outs in manufacturers and suppliers result, which leads to fewer competitors. In many instances, consumers begin to see the brands as substitutes for each other. This reduction in brand loyalty decreases manufactures power and increases retailer's power, because sales are determined by what is in stock rather than by what particular brands are offered. Therefore, it is essential that manufactures have efficient logistics capabilities ensuring their brands are on display with the retailers.

One thing is certain, however, and that is change. These continuing changes place logistics at the forefront of company organizational strategies and programs.