The retail industry in Malaysia grew on a supply chain network used to working on long credit terms. The collapse of the Emporium Supermarket and Department chain stores with a debt of RM290mil crippled the entire supply chain of grocery and clothing entrepreneurs. Retail outlets have to pay their suppliers on shorter credit terms. Chain stores are better managed financially nowadays, traditional wholesalers and independent grocery stores have diminished in numbers and importance, and overall credit risks in the retail supply chain have reduced, leading to a healthier retail industry, going forward. Malaysian retailers and supply chain players should study supply chain format transformation practices of advanced countries, as they have a much longer history.

Source: The Star October 12, 2019 01:18 UTC