Logistics plays a vital role in the retail industry, as it involves the planning, execution, and control of the movement of goods from the manufacturer to the consumer. A well-functioning logistics system can help retailers to improve efficiency, reduce costs, and increase customer satisfaction.
1) Logistics Can Help Optimize Your Retail Inventory
Effective logistics management starts with the optimization of inventory levels. By closely monitoring stock levels, retailers can ensure that they have the right products in the right place at the right time. This can help to minimize the risk of stockouts, which can lead to lost sales, and reduce the need for expensive emergency orders.
2) Reduce Transportation Costs
Another important aspect of logistics management is the selection of the most cost-effective and efficient transportation methods. Retailers must consider factors such as distance, speed, and cost when selecting the best mode of transportation for their products. The use of machine learning enabled technology, such as a retail supply chain planning system, can help retailers to optimize their logistics operations and reduce costs.
3) Better Last Mile Delivery
Retailers must also consider the role of logistics in the last mile of the supply chain – the delivery of goods to the customer. This can include the use of various delivery options, such as same-day or next-day delivery, to meet customer demands.
4) Mitigate The Impact of Covid-19
As we all know, The COVID-19 pandemic has had a significant impact on the retail industry, and logistics and shipment tracking have been particularly affected. The sudden shift to online shopping, coupled with disruptions in global supply chains, has put a strain on retailers’ logistics and shipment tracking processes.
One of the biggest challenges retailers have faced is the increased demand for home delivery. With many consumers opting to shop online due to lockdowns and social distancing measures, retailers have had to quickly adapt their logistics operations to meet the surge in demand. This has led to delays and disruptions in the supply chain, causing delays in package delivery.
5) Deal With Global Supply Chain Chaos
Another challenge retailers have faced is the shortage of capacity and resources due to the disruption of global supply chains. This has led to a shortage of cargo ships, planes, and trucking capacity, making it difficult for retailers to move goods around the world. This in turn has caused delays and increased costs for retailers, as they have had to find alternative transportation methods.
6) Get In Front of Customer Returns
In addition, retailers have also had to deal with a significant increase in returns due to the shift to online shopping. With many consumers unable to try on clothes or see items in person before making a purchase, returns have risen significantly. This has put a strain on retailers’ logistics processes, as they have had to quickly adapt their returns systems to handle the increased volume.
To address these challenges, retailers have had to invest in advanced data analytics to improve their logistics and returns forecasting processes. They have also had to invest in alternative transportation methods, such as ground transportation and air cargo, to avoid the delays caused by the shortage of ships and planes.
The Bottom Line (TL;DR) – By focusing on streamlining logistics, shipment tracking and order fulfillment processes, retail and e-commerce companies can quickly strengthen their bottom line. The impact of Covid-19 and the resulting supply chain congestion has cut into retailers’ ability to service customers and keep costs contained. Retail supply chain planners would do well to keep an eye on the five areas mentioned and leverage cutting edge technologies to help mitigate these risks.
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