ASDA has cut four weeks off its average product development specification process – from concept through to launch, resulting in an increase of more than £6.8 million in sales in just 12 months.
The increase is particularly key to the supermarket’s own-brand, which have recently taken on new levels of complexity due to the advent of meal-based, multi-component products and the calculation of recipe, ingredient and nutritional information, and all have to adhere to the ever changing legal requirements placed upon retailers.
By utilising the supplier collaboration module within RedSky IT’s Creations supply chain software, ASDA has been able to reduce the time taken to bring new products to market. This is because Creations enables all partners within the supply chain to collaborate electronically in real time, easing the information flow between ASDA and its suppliers and production sites.
John Clague, head of technical services for ASDA says: “We operate in a very competitive and fast-paced market where being first on the shelf can literally mean the difference between success and failure. The software from RedSky IT enables our supply chain partners and key third parties to communicate more easily and efficiently, which in turn, results in our products coming to market faster, while still reducing our cost base and supporting our ‘everyday low price’ principles”.
He continues: “From a commercial point of view, for every week that we can get a new product range to market faster, we can generate millions of pounds of additional revenue and more importantly, satisfy our customers by offering them additional products on the shelf.”