Monday, 4 February 2013

The Key Changes in Retail and Logistics

The number of shops on the high street continues to be in decline with the smaller independent traders struggling to stay open in the difficult economic climate and larger well known retailers closing after the disappointing Christmas sales. The stores that do remain tend to be larger with a bigger capacity for stock.


retail logistics
Photo by Roberto Verzo
All these changes have a direct impact on the new trend of reducing the inventory policy and logistics. One of the main changes is the difference in how stock is stored and how to keep less stock. The inventory reducing policies include:
  • Reducing the size of the stockroom to increase the size of the selling areas
  • Reducing costs by reducing stock holding
  • Introducing vendor managed inventory
Perhaps the most important policy change that’s had an impact on logistics is the reduction of the size of stockrooms to maximise the selling space available. Due to technological advances, this policy has been able to develop at a fast rate – the point of sale providing accurate stick levels and the replenishment levels. Logistics are required to provide deliveries in a timely fashion with continuous flows being created. Couriers deliver the stock to keep up with the speed the stock is heading out with the consumer. The change has resulted in a more streamlined and efficient international logistics operation that moves with retailers to keep up with modern shopping habits of the consumer.

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