Logistics Challenges in the Retail Industry
Introduction
in the retail industry it is often taken for granted that goods and services are available for purchase, when demand for them has been initiated. The cornucopia that good in a retail store or supermarket are available seldom means that consumers have forgotten how products have been initially supplied. With the emerging e-commerce consumers have come to demand complete availability and home delivery at time suiting their lifestyles, consumer tastes and preferences have also altered tremendously in recent times. Customer service and gratification expectations have increased and customer’s willingness to wait to be satisfied or served has decline which in turn has put excessive pressure on the Business Logistics Systems procedures in the retail industry. With all these developments it is only obvious that the transformation of good from point of origin to point of consumption have to be improved, implemented and control with greater accuracy in order to meet the end user (consumers) needs. Retailing and Logistics are primarily concerned with availability of goods; many have described this as ‘getting the right product to the right place at the right time’. Along with this great pressure are numerous Logistics Challengers that hamper the effective and efficiency of many retail organizations in the Retail Industry.
Logistics Challengers in the Retail Industry
2.1 Demand Driven Distribution
Inventory being a major contributor to the market success of a company, it is essential to manage inventory well to meet company financial and business goals. Companies all over the world either in the manufacturing, distribution and retail industries are striving to become demand driven. Demand driven distribution is a strategic action that’s allows actual demand for good to pull inventory through the company and its supply chain. Unfortunately with outside factors, cooperate strategies and management practises that create challengers’ in
in the retail industry it is often taken for granted that goods and services are available for purchase, when demand for them has been initiated. The cornucopia that good in a retail store or supermarket are available seldom means that consumers have forgotten how products have been initially supplied. With the emerging e-commerce consumers have come to demand complete availability and home delivery at time suiting their lifestyles, consumer tastes and preferences have also altered tremendously in recent times. Customer service and gratification expectations have increased and customer’s willingness to wait to be satisfied or served has decline which in turn has put excessive pressure on the Business Logistics Systems procedures in the retail industry. With all these developments it is only obvious that the transformation of good from point of origin to point of consumption have to be improved, implemented and control with greater accuracy in order to meet the end user (consumers) needs. Retailing and Logistics are primarily concerned with availability of goods; many have described this as ‘getting the right product to the right place at the right time’. Along with this great pressure are numerous Logistics Challengers that hamper the effective and efficiency of many retail organizations in the Retail Industry.
Logistics Challengers in the Retail Industry
2.1 Demand Driven Distribution
Inventory being a major contributor to the market success of a company, it is essential to manage inventory well to meet company financial and business goals. Companies all over the world either in the manufacturing, distribution and retail industries are striving to become demand driven. Demand driven distribution is a strategic action that’s allows actual demand for good to pull inventory through the company and its supply chain. Unfortunately with outside factors, cooperate strategies and management practises that create challengers’ in
References: ◆ Wessel J. Pienaar, John J. Vogt; (2012); Business Logisics Management: A Supply Chain Perspective; 4th Ed; South Africa: Oxford University Press; p 1, 3, 23, & 28 ◆ John J ◆ Ajay Gupta; (2012); Managing Inventory Obsolesce for Improved Retail Performance; [WWW]; Dell; Available from: http://i.dell.com/sites/content/business/smb/sb360/en/Documents/wp-retail-r4-fa-uk.pdf; [Date accessed: 22-03-2013] ◆ J Ashayeri, R.P