The retail industry is a significant player in global trade. Retail logistics, in turn, is the key to delivering the right product to the right customer at the right time. Building an effective retail supply chain can meet the rapidly growing consumer demand. They also make your products available anytime and anywhere.
What is retail logistics?
Retail logistics is transporting goods from the production source to the customer. It involves the whole sequence of operations required to deliver the items. The modern way of making purchases, including online platforms, has already become casual. It is hard to imagine all the actions needed to organize the supply chain. Logistics processes in the retail industry usually boil down to two related categories: inbound and outbound logistics. Inbound retail logistics move materials or goods from the supplier to a designated internal spot. The shipments are usually arranged in a warehouse. It is where one of the most critical elements of the retail supply chain steps into the game.
Warehousing in the retail industry
It would be impossible to manage any retail trade without warehouse capacity. Without a reliable depot for the supplies, you won’t be able to offer goods to your target audience. That is why the warehouse arrangement is critical in preparing for retail operations. Warehouses differ in size, structure, applied technologies, and business orientation. Depending on these characteristics, modern warehouses can be divided into several types.
Public warehouses are a prevalent option among the owners of small to midsize businesses. They are affordable and allow you to share the space with other suppliers. In other words, you can rent a public warehouse space to store your goods for a certain period. Besides, you can use additional services like inventory management and control.
Private warehouses comprise extensive storage facilities. They are a good choice for large-scale suppliers that hold wholesale logistics operations.
Distribution centers keep goods for short periods (1-2 days) due to the product’s specifics. It is an excellent choice if you plan to ship foods, beverages, flowers, or other perishable items.
Climate-regulated warehouses allow storing of goods that require temperature and humidity control. Usually, climate-control warehouses offer freezers or environments of a particular temperature regime.
Automated warehouse spaces apply technology to replace numerous manual operations, such as sorting out or item retrieval. These warehouses are empowered by inventory software and stand out with their work efficiency. That is, you will probably never face common stock issues. Various computer systems stalk the state of your products.
However, the active use of technology considerably affects the price of renting such a space. Benefits of logistics for retail supply chain Logistics is one of the milestones of extending the modern retail sector and developing small and midsize businesses. The main advantages of logistics for retail supply chains are:
- Optimized delivery time. Customer expectations for delivery speed are high. Sometimes even minor delays can lead to dissatisfaction and refusal to buy from a specific retailer again. This pressure forces retail shippers to constantly search for new ways of optimizing their average delivery time. Proper pre-planning is the key to resolving the issue. Retail logistics involves exploring better routes with less traffic.
- On-market presence. You will see beneficial results if you invest your time in structuring the logistics process. This will likely result in a higher on-market presence and better sales. Also, remember that customer satisfaction and healthy relationships with suppliers depends on how functional you are during transportation.
- Structured inventory management. As soon as you set up a regular supply of goods, the customer demand will start to grow. At this point, retail logistics will guide you in choosing a suitable warehousing space and proper inventory management.
- Transparency and minimized risks. A well-organized logistics system lets you control all the critical operations within the retail supply chain. It allows you to make the proper budgeting, sales, marketing, production, and risk assessment decisions.
Retail logistics solutions
One of the main parts of launching an effective retail supply chain is choosing the proper shipping service. When considering the available options, count several factors. Such as pricing and expectations of delivery speed, for example. To plan your shipment, find out more about the best solutions for retail transportation. Less than truckload shipping mode is probably the best way to move the goods in retail trade.
LTL shipping mode allows transporting up to 20,000 lbs. or 1 to 6 pallets of goods. With LTL, you will use a part of the trailer’s space instead of booking the truck. Thus, even if your cargo is of moderate size and weight, it is possible to deliver it cost-effectively. Due to sharing the truck’s space with other shippers, the delivery dates of LTL are typically extended and include the chance of delays as the driver makes multiple stops in the process.
Full truckload mode is suitable for moving more oversized items or more considerable quantities of goods. With FTL shipping service, you’ll receive the whole trailer meant to condense your products only and move them straight to the destination with no extra stops. FTL mode works best when you deliver the cargo within specific deadlines. Also, full truckload shipments implement higher levels of cargo safety. You can be sure goods will not be damaged during transportation.
Reefer shipping is the best option for delivering consumer packaged goods (CPG). This is a considerable part of the retail supply chains. Besides all the everyday products, CPG includes foods with a short shelf-life. They need to travel in trucks with thermal control systems. Refrigerated shipping allows keeping your items fresh until they are received.
As a wholesale shipper, you must have been facing the everyday challenges of the wholesale distribution industry. On the one hand, the competition among manufacturers and suppliers is getting stronger.
Along with expanded product offerings, there is a tendency to tighten delivery terms. All these reasons put pressure on wholesale shippers and make them search for advanced types of transportation. The full truckload shipping mode is the key as it reduces the risk of delays or cargo loss.
Retail logistics with GoShip GoShip has a network of over 45,000 carriers. All carriers have been pre-vetted to deliver the safest journey for your freight. GoShip gives shippers a wide variety of choices through our get-free quote tool. Shippers need to enter basic information about their freight, and within seconds, they’ll receive a free range of quotes from which to choose.