The retail industry is always moving fast and evolving. This also means that you no longer have to buy the things that you need from the street sellers. This is the age of e-commerce and in the context of the global economy, it is worth trillions of dollars. There is so much on the plate for retail businesses – no longer can they rest easy only by lining the shop shelves. Nowadays, they have to order, pack, find, and ship at least hundreds of orders every day, if not thousands. In this article, we will talk about the connection between retail and logistics and emphasize the necessity to pursue logistics programs and courses at the top educational institutions in India for a bright professional future in the domain.
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How do logistics benefit the retail industry?
1. Streamlining supply chain management
Logistics is just one part of the process of supply chain management but the importance of logistics in this context lies in what it encompasses. It involves numerous players and businesses in creating, supplying, and transporting products from the beginning to the end. Logistically speaking, the total supply chain has to be managed carefully, and precise time frames have to be observed so that orders can be met, customers are satisfied, and perishable products can be prevented from rotting upon delivery!
2. Speedy deliveries
These are an important part of retail logistics as well. Retailers nowadays are applying strategy to product transportation and looking at the best routes and countries available to them to make sure that they are more direct and take less time in their delivery. If logistics are planned properly it can reduce transit times between suppliers and stores and sellers and customers. Next-day delivery has ceased to be an attractive promise nowadays. It has become an incredible possibility these days – one that boosts sales and also shows off the efficient and comprehensive logistics of retailers. Almost 41% of shoppers abandon their carts because of lengthy delivery times.
3. Innovative technology
This is yet another sign of the burgeoning role of logistics in the retail domain. The technology being used in both logistics and retail is always changing for the better and these days both are being integrated into single platforms as well! These software solutions encompass all the key areas of retail logistics such as the following:
- order management
- inventory management
- warehouse management
- transportation management
- forecasting
They offer retailers so much more than only tracking stocks – they help create metrics that can adjust and measure the total order fulfillment for optimization.
4. Inventory management
When it comes to the role of logistics in retail industry it probably does not get more fundamental than this! Since retailers these days are using the best logistics management software they can organize and track stock in the best way possible. They now have complete knowledge of where their stock is at a given point in time – more importantly, they know how much of it is still with them. Effective logistics management makes sure that there is no guesswork in order fulfillment and shop stocking. Retailers can now view automated reports, instant data, and informative graphs with just the click of a button.
5. Cost-effectiveness
From an economic perspective, this is the most important role of logistics in retailing for sure! When a retail business follows more effective processes its logistics, as a whole, become that much more cost-efficient as well! It does not matter if they are streamlining these processes in-house or outsourcing them to a 3PL (third-party logistics provider) – there is no doubt cost benefit that they have to worry about in this context. Hiring a 3PL eliminates the need to hire warehouse staff, invest in modern technology, and rent storage space as well.
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Conclusion
The importance of good logistics education cannot be denied when it comes to achieving success in the retail industry and similar domains. The good thing is that as a student you have the option of enrolling in an online university in India for an MBA degree program in Logistics and Supply Chain Management, or an online Postgraduate Diploma in Logistics and Supply Chain Management. Apart from these, you also can explore the Professional Certificate Programs in Supply Chain Management, Logistics, and Inventory Management as well!
Also read:- Difference Between Logistics and Supply Chain Management
