Sri Lanka supermarket chain cuts waste with better logistics

Nov 02, 2011 (LBO) – Investing in better logistics and supply chain management helped Sri Lanka’s Cargills group to reduce wastage and improve efficiency at its Food City supermarket chain. Cargills deputy chairman Ranjit Page said the process ensures prices to consumers remain static and its outlets charge one price throughout the island.

Farmers get more money and consumers pay less as Cargills cut wastage between farm gate and consumer to less than 10 percent from the 30-40 percent usually prevalent elsewhere in the trade, he told a logistics forum.

“With Cargills supply chain, the farmer gets more money than what he used to get and, more importantly, you the consumer pays less money than what you used to pay,” Page said.

“We ensure through this process that price to consumers remains static. Probably we’re the only company which has one price throughout country – we don’t change our prices depending on the cost for transport.

“Yes, it is a cost but the efficiency we bring into the system in supply chain management and wastage control enables us to help Sri Lanka spend less on food,” Page told the annual international conference of the Chartere