The terms “Supply chain management” arose in the late 1980 and came into widespread use in 1990. Prior to that time, business use terms such as “logistics” and “operations management” instead. A supply chain is the collection of processes and resources required to make and deliver a product to the final customer.
What is the retailer role in the supply chain?
Retailers have a large role in promoting sustainable consumption and production, occupying a unique position in the life cycle chain of products as a ‘gatekeeper’ between producers and consumers. They can potentially play a big role in furthering the sustainability of consumption and production.
Your retail supply chain is the process you use to get your products to your consumers. It encompasses everything from obtaining the raw materials to make your product to delivering that product into your consumers’ hands. You want to be able to deliver your products into a consumer’s hands as fast as you can.
Retail supply chain management then is how you optimize those processes to maximize both speed and efficiency. You want to be able to deliver your products into a consumer’s hands as fast as you can. However, you don’t want to pay outrageous amounts to do that. You must also optimize your processes to be as efficient and as affordable as you can.
Technology Is Rapidly Transforming the Supply chain
As traditional retailers large and small field fierce competition from online businesses, many other retail industry giants are turning to technology to speed up the delivery of goods to customers. For businesses of any size looking to succeed in today’s fiercely competitive marketplace, inventory management and related technology can often mean the difference between a healthy and unhealthy bottom line. “One of the keys to business success is to improve inventory management software at the retail level, in order to better understand what product is available, in what quantity, and in which locations, The skills, and tools required to run the modern retail store have evolved, and as a result many retailers are falling behind. In response to the demands of consumers who want what they want delivered quickly, and at a very low-cost retailer are examining all options for cutting both the time required to deliver goods to customers and the related logistics costs.
Internet Retailing Is the Fastest Growing Segment in the Retail Industry
Internet retailing is the modern way of shopping. With the growing penetration of smartphones and mobile devices and internet services, e-commerce has emerged as a major shopping platform in the world. Although the sector’s market size tripled over the past three fiscal years, internet retailing accounted for a mere 1.5% of the total retail sales in most of the countries all over the world. Mobile-first sites, dedicated.
apps, emerging payment methods, and other tools are making shopping on smartphones much easier.
Research by Min-tel found that the share of grocery retail sales carried out online grew by 0.9% in two years, rising from 6.1% in 2016 to 7% in 2018. Min-tel forecasts that this share will grow to 10% of all grocery sales by 2023, with online grocery sales set to total £19.8 billion, up from £12.3 billion in 2018.
Supply chain adapting to rapid changes
Rapid progression in e-commerce retail with augmented demand for fastest/same-day deliveries are bringing about paradigm shifts in the e-commerce retail supply chain functions. Logistics requirements for the e-commerce retail sector are getting reshaped by continuously evolving customer and business demands.
To overcome these challenges the retail supply chains are adopting processes and innovations to meet the rising consumer expectations that benefit the e-trailer/retailer, the supply chain partner and the customer.
Many of the processes adopted or facilities provided by the supply chain players are being designed keeping customer convenience as topmost priority and forgiving on point solutions rather than a delayed problem-solving mechanism.
Supply chains are being designed to be more efficient and support the faster movement of orders. Same day delivery in metros and next day deliveries in tier 1 and tier 2 towns is the industry standard now. They evaluate the customer demand pattern and optimize their ordering process by analyzing big chunks of data and numerous transactions.
The supply chain is looking towards faster TAT (turn around times) for the return orders too. Logistics partners are opening various distribution centers and hubs in prominent places from where they can reach maximum locations at minimal cost-reducing the total delivery cost. Warehouse spaces are being intelligently optimized to reduce supply chain costs.
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