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. Retail logistics companies are therefore very customer focused and we start running into problems when the expectations of the consumer are not met. Successful retail logistics solutions ensure 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 solutions are optimised to suit both retailer and consumer so 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 e-Commerce fulfilment 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 warehousing and 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 and warehousing within retail are:

  1. Manufacture to storage – An increase in product varieties within stores means effective retail logistics solutions including the flow of merchandise to warehousing and the arrangement of appropriate and efficient transportation from warehousing activities 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 retail logistics companies with an efficient process, ensuring e-Commerce fulfilment is carried out in the most cost-effective way.
  4. Infrastructure – Successful retail logistics services ensure the correct infrastructure is in place throughout the supply chain, such as warehouse logistics, appropriate transport support solutions, correct inventory levels, and 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, affecting 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 freight forwarding and courier requirements. We deliver bespoke end-to-end supply chain logistics solutions that add value to our customers’ operations.

At Xpediator we have over 30 years of retail logistics solutions and e-Commerce fulfilment experience. We understand that manufacturers, brands and retailers of textiles and retail-related products all rely on high quality and dependable warehousing and logistics services. For more information on our retail logistics services and fashion warehousing solutions please call us on +44(0) 330 043 2395 or visit: https://xpediator.com/divisions/fashion-retail/

27 07 2021
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