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.
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| 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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