Costco: A challenge and opportunity for CPG vendors

From a recent RetailWire discussion about Costco: Most panelists agree that there are specific product development challenges doing business with warehouse clubs. I point out that CPG companies should devote more internal resources to supply chain management, too:

Outside of the key issues that other panelists brought up (bulk sizes, limited SKU count, exclusives), it’s also important to keep in mind the particular challenges of doing business with warehouse clubs. As David pointed out, forecasting is a big issue, along with the logistics of bulk deliveries, etc. CPG companies that have put a lot of effort into supply-chain “partnership management” with their key discount, food and drug acouunts would be wise to put some human resources behind warehouse clubs like Costco with rapidly growing market share.

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