Ineffective NPD, including a proliferation of pack sizes and product ranges, is leading to problems with on-shelf availability and demand forecasting, said Tesco supply chain systems development director Bruno Monteyne this week.
Speaking exclusively to The Grocer at the IGD Availability and Demand Planning conference in London, Monteyne said suppliers needed to better plan NPD to take into account the implications of for retailers.
"If a new item is niche or a slow seller," he said, "it is harder to forecast. That's when gaps appear."
Suppliers often added products to a range without removing an older SKU, which caused replenishment teams problems in finding the space on shelves, he explained.
"It becomes a challenge to the store if there are so many new products that the shelves look untidy and the store room is full of spare stock that can't fit on shelf," he said, adding that while he was not against innovation, "when suppliers introduce complexity to ranges for the sake of it the vast amount of choice can confuse and intimidate consumers."
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