Making Sense of Retail Logistics: Challenges, Trends & More

For nearly 40 years, Legacy Supply Chain has provided comprehensive services, including warehousing, distribution, fulfillment and transportation, for major retailers across North America. Retail logistics are all about ensuring that your supply chain is efficiently managed so your customers get what they want, when they want it. It involves product procurement, inventory receiving, fulfillment, and shipping. Each stage of the retail logistics process requires a strategy and the necessary systems in place to stay optimized and keep your supply chain running.

What is an example of retail logistics

It is so because a lot can happen during shipping – delays, loss of items, delivery to the wrong location, or even damage. Businesses must synchronize inventory procurement into retail logistics to avoid disappointing customers by delaying making goods available when due. An effective procurement process is the first step to successful logistics in the retail business. Everything revolves around giving people what they want, when they want and at their convenience. The key to success is winning over customers’ confidence and helping businesses grow their operations daily.

Ways to Improve Your Retail and Logistics Management

Retail warehousing is an essential part of the supply chain, especially as businesses across the United States face a significant decline in storage capacities, according to the Wall Street Journal. E-commerce ventures are also on the rise, and these online retail shops need space to store, package, and brand their inventory to get it ready for distribution to customers. Logistics is the process of coordinating how goods and products are obtained, stored and distributed. Manufacturers rely on logistics while overseeing complex operations in order to maintain efficiency, reduce costs and ensure that consumers’ needs are met.

What is an example of retail logistics

The top five companies currently account for 65 percent of container capacity, a figure predicted to rise to 80 percent by 2025 (Exhibit 1). Industry consolidation has left retailers with fewer alternative carriers to augment capacity among their key partners. All supply chains – global or local – need solutions that power uninterrupted data flow. This is needed for instant reporting and easy logistics and supply chain optimization. Use Track-POD’s analytics and built-in reports to monitor performance across your supply chain.

Business and Management Logistics Explained

With a fusion of data analytics, artificial intelligence, and other reliable software, you can optimize retail logistics to give you a competitive advantage. Regardless of the inherent challenges of retail logistics, there are tricks to optimizing your logistics services for better results. However, one proven way is to implement retail logistics through various omnichannels. This implementation allows customers to purchase online – on their mobile devices, desktops, and return products in-store. Retail logistics is a vital aspect of the supply chain that companies use to maintain healthy relationships with their customer base.

What is an example of retail logistics

Both distribution centers and retail warehouses can help you hold your goods before dispersing them to your consumers. However, retail warehouses typically hold products until you find clients, which may take longer. Thus, ensure you have the proper alignment in your supply chain before entering any massive growth period. One of the biggest challenges most SMBs and e-commerce ventures face is inventory management. Due to the challenges of storage space and issues with organization, it can be difficult to keep track of inventory, eliminate stock outs, and keep order fulfillment flowing.

What is the role of retailing in supply chain management?

This prediction, if realized, could significantly impact the dynamics of the upcoming holiday season’s consumer spending trends. We’ll be in your inbox every morning Monday-Saturday with all the day’s top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur. As AI and e-commerce evolve in tandem—a thrilling ride awaits—where will these exponentially growing forces take us? Despite some having concerns that AI will lead to things like fake reviews, the founders of are adamant that their tech is what the future of AI writing technology looks like. AI detectors are a new type of artificial intelligence software aimed at classifying and identifying AI-created texts on the internet. Ascend differentiates itself through its integrated approach, allowing brands to outsource the entirety of their e-commerce operations to one provider.

With retail you get access to customers who are more diverse than you would otherwise reach. A retailer also helps people get introduced to your products in a different way than you market yourself. By outsourcing retail fulfillment to a reputable 3PL, you’ll likely benefit from their already established connections. If your 3PL is sending products to Best Buy already, chances are they’re going to get your orders perfect the first time you start shipping there.

Unlock growth by outsourcing to ShipBob

The objective is to build a quicker, more durable and sustainable supply chain. Distributed inventory is a method of allocating inventory where stock is distributed among several warehouses or fulfillment locations as opposed to just one. This system’s basic premise is that it brings your goods closer to your clients, making it one of the best ways to speed up delivery times and lower transportation costs. The price of satisfying retail orders depends on delivery zones so thus, the closer a shipment is to the buyer, the less the retail logistics will cost them.

  • On the one hand, you have the supply chain chaos, with disruptions in manufacturing, warehousing, transportation, and decision-making overall.
  • With best-in-class fulfillment software and customizable solutions, we provide hassle-free logistics support to companies of all sizes.
  • According to a 2020 market report, 46 percent of American customers abandoned an online shopping cart if the shipping time was too long or not provided.
  • Oftentimes, a winning shipping strategy is a combination of different shipping methods and partnering with the right mix of carriers.
  • Across the entire supply chain, it’s crucial to have a system that would allow you to manage and monitor your inventory in real-time.

Investing in integrated logistics management can help retailers ship goods faster, prevent common errors, and boost customer satisfaction. However, it is important to be aware of the challenges that retailers face when planning their supply chains and the options available to transport goods safely and securely. Retail supply chain management refers to the way you handle the inbound and outbound logistics of a good, from raw materials to delivering the final product to a customer. Supply chain managers cloud logistics software developer optimize supply-side activities to cut costs, deliver products faster, and gain a competitive advantage in the market. In our vast, yet tightly interconnected world, consumers are able to purchase products from halfway across the globe and have them on their doorstep within the matter of days. The global supply chain is the engine that makes this all possible and — for companies in the retail sector — retail logistics is the key to effectively managing the flow of goods from suppliers to consumers.

Effective Inventory Management with Product SKUs

To transport products to customers, companies with in-house delivery teams hire logistics managers and/or dispatchers whose job is to plan routes, optimize fleet, manage drivers, track vehicles, and report to customers. These days, more and more customers expect a more efficient and seamless experience from your brand. This involves providing transportation and shipping options and meeting with them wherever they are. However, retailers do not have as much control over road transportation options than other types of freight. Packages are more likely to suffer damage in a fast-moving truck than a slow-moving ship, for example. And since road freight is more susceptible to shipment delays, such as delays due to poor road conditions or bad weather, this mode of transportation is best for retailers who can absorb longer shipping times.

Direct to consumer last mile shipments have risen 14 percent per year from 2015 to 2020, driven primarily by the expansion of residential B2C delivery from accelerated e-commerce demand (Exhibit 3). Parcel integrators have responded by revising their B2C strategies and adjusting price
and service levels. Although demand for B2C delivery continues to grow, national carriers have focused their investments in the B2B side of the business, given the channel’s more attractive margin and ROIC profile. Vacancy levels have dropped to
all-time lows, while high absorption rates pushed rents 4.2 percent higher year over year in the first quarter of 2021 to $6.39 per square foot. Only nine of the top 50 US markets experienced rent declines
during this period.2 Gillam Campbell et al., Industrial Tenant Demand Study, Jones Lang LaSalle (JLL), June 27, 2021,

Smart Warehouse

An effective retail logistics system can lower shipping, warehousing and stock management costs. It can also improve communication between the supplier and retailer, allowing for better coordination of orders and deliveries. Furthermore, a good logistics system can help retail businesses respond quickly to changes in customer demand and supply chain disruptions.

What is Retail and Logistics Management?

Whatever the model, customers expect multiple shipping options and top efficiency. Recommerce, or reverse commerce, refers to selling previously-owned goods through physical and online channels. With 77% of US consumers concerned about the environmental impact of their products, retailers are revamping their supply chains to improve sustainability and bottom line.

Returns management

A cooperative warehouse refers to the storage structures started and operated by cooperative entities. For instance, you may have heard of milk farmers’ cooperatives, winery cooperatives, fishing cooperatives, or others. Growth marketing manager with a background in public relations, SEO, social listening, and Account-Based Marketing. Though the supply chain-wide labor shortage is certainly nothing new, the ongoing COVID-19 pandemic has exacerbated the situation, significantly reducing the available labor pool. Getting to share product feedback and future ideas with ShipBob has been so refreshing and reassuring.

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