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Globalization In Retail Logistics

808 Words4 Pages

Introduction

Retail industry is changing fast due to the changes in the preferences of the customers. Retail companies are striving to match with the expectations of the customers. Retail and logistics issues receive more attention among the companies involved in retail industry. Retail and logistics require a fully integrated approach because today's businesses succeed and failed on these issues. The permanence of retailer crucially depends on their logistics.

Strategic Models

According to Kotler (2002) p. 557 market has evolved from the physical distribution logistics for the comprehensive management of the supply chain, as it had in the beginning, planning basic inputs and raw materials and extended to the order of product to the final …show more content…

The environment in which Costcutter operates is currently very complex and highly competitive. Therefore, they are seeking differentiation and the establishment of competitive advantages over their competitors. To achieve these goals, they have engaged Palmer and Harvey for implementation of logistics, which should be understood as the strategic management of the flows of materials and related information to lead efficiently and effectively products from a source to a destination. Globalization, the change in consumer behavior, reducing the life cycle of products and the weakening of the brands require organizations to acquire and develop new skills to win and keep customers. Expand the dimensions of competitiveness, which is no longer regional to be global. The competition shall take place between supply chains and no longer between individual companies (Christopher, 2005, p.87). In this context, the competitive advantage for Costcutter is effective and efficient logistics which can ensure supplies all the time for consumers. Costcutter would have this competitive advantage through improved retail logistics which will cut down their logistics cost and ensure timely delivery of inventory and material. The flow of goods would be improved. Palmer & Harvey use a host of soft wares which aims at expediting the processes of retail logistics. The company uses Oracle Transportation Management platform (OTM) which optimizes the routes and loads along with reduction in the transport cost. Hence value chain analysis is important which will provide company to understand and develop its competitive advantage in terms of greater value for their customers. This competitive advantage can allow Costcutter to expand its customer base and increase its market share. Moreover, the store have the advantage of lower logistics cost because of the reliable logistics partner. The reputation of logistic

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