Manufacturers are learning how to move from producing big batches towards a new goal of making ‘every product every day’. In doing so, they are slashing bloated inventory levels, freeing up space and time, improving service levels, and creating a platform for continuous improvement.

Retailers are learning how to move from forecast driven replenishment systems which are not responsive to real demand towards new, flexible supply chains which replenish products as consumers buy them. In doing so, they are slashing inventory levels, eliminating unnecessary touchpoints and labour, and improving on-shelf availability.

Now these once-parallel tracks are beginning to merge. In the process, they are creating a platform for the industry to innovate fundamentally: to offer the freshness of farmers’ markets, the prices of hard discounters, the convenience of the best convenience outlets, and the range of the biggest out of town stores – all at the same time.