What does logistics mean in retail?

Logistics is the movement of a large volume of goods and, from a consumer point of view, logistics are working efficiently when they are getting the right product for the customer and their needs, at the right place, and at the right time. Logistics in retail is therefore very customer focused and we start running into problems when the expectations of the consumer are not met. Successful retail logistics ensures the smooth flow of goods to consumers via efficient and effective supply chain management. 

Retail logistics is specifically the process of managing the flow of merchandise between the manufacturer and consumer. Larger retailers offer a wider range of products, meaning a more systematic approach is needed in order to ensure that the retailer can offer the best delivery options and lowest prices to their customers. Retail logistics makes sure that this process is optimised to suit both retailer and consumer and that there are minimal delays in delivery to solidify relationships and encourage repeat custom. 

The success of a retailer is largely dependent on the relationship with their customers, creating brand loyalty, repeat custom and conversion into sales. It is therefore important that the strategy of a retailer ensures smooth delivery of goods to meet customer demand, keep ahead of trends and maintain good inventory management. 

The continued growth of ecommerce only drives this importance so much more, especially as shopping is increasingly accessible to consumers through mobile devices making it easier, and faster for them to obtain goods at their fingertips. In order to make the most of their logistics needs retailers need to understand who their customers are, where they are located and what their shopping habits are. 

Therefore the key drivers in successful logistics within retail are:

  1. Manufacture to Storage – An increase in product varieties within stores means an effective logistics process including the flow of merchandise to warehousing and arrangement of appropriate and efficient transportation from warehouse to retailers in order to sell to consumers. 
  2. Location of Goods – Planning of locations in order to deliver the right product at the right time and the right place. 
  3. Costs – Increased profitability will come from an efficient logistics process, ensuring order fulfilment is carried out in the most cost effective way.
  4. Infrastructure – Successful logistics in retail ensures the correct infrastructure is in place throughout the supply of goods, such as warehousing, appropriate transport, correct inventory levels, efficient administration practices. 

Many businesses will focus on the quality and design of their products or services and deem that the most important factor, however taking all the above into account, if products cannot reach customers this will impact customer satisfaction, effecting sales and ultimately the profitability of the company.

The Xpediator Group’s Retail and Fashion logistics division has the expertise and capability to support the most complex national or international distribution requirements. We deliver bespoke end-to-end supply chain solutions that add value to our customers’ operations

At Xpediator we have over 30 years’ experience and we understand that manufacturers, brands and retailers of textiles and retail related products all rely on high quality and dependable logistics services. For more information on our retail logistics offering please visit: https://xpediator.com/divisions/fashion-retail/

27 07 2021
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