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  1. ISBN 10: 0749468238
  3. Logistics and Retail Management: Emerging Issues and New Challenges in the Retail Supply Chain

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ISBN 10: 0749468238

Click OK to close the Internet Options popup. Chrome On the Control button top right of browser , select Settings from dropdown. More recently this attention has been due to the success of this transformation and the growing realization that Tesco has been a pioneer in the supply chain and has developed a world-class logistics approach. To some extent this success was due to the particular circumstances in the United Kingdom, which allowed a conforming and standard retail offer to be serviced by a straightforward and regular supply system. Such circumstances no longer apply, as the market in the United Kingdom has been altered and Tesco itself has become a much more international retailer and product sourcing has also become more international.

Particular emphasis is placed on the need to change logistics and supply to reflect the changing nature of the retail operations. With the store component transformation of the business well known, the chapter considers the less well known developments for logistics and supply. One component of this is the way in which Tesco has been influenced by dimensions of lean supply in its thinking.

This is most seen in their food business and in new start-ups such as Fresh and Easy in the United States. At the same time the global nature of Tesco and its movement into non-food has complicated its supply and logistics operations. Whilst there are particular aspects of fashion logistics that require special consideration and handling, such issues are probably as pointed in the food sector.

These chains are essential to the safe supply of food to consumers, not least because breakdowns in such systems can cause serious health hazards in the general population.


At a time when food scares have become more common, retailers have therefore had to pay special attention to channels that need specially controlled handling systems. Smith and Sparks review the importance of TCSCs before outlining the issues that are confronting retailers in meeting legal and other standards and then examining the future concerns that are likely to arise. One of the key topics identified by retailers, and in our second edition as a major challenge, is that of availability.

If products are not available for sale then retailers struggle and consumers will be attracted to competitors that have availability and choice. Despite the belief that the United Kingdom had a good retail supply chain, concern was raised from onwards that availability was variable and provided an opportunity for retailers and manufacturers. Through a case study with a major UK grocery retailer, the authors show how on-shelf availability has been improved.

In particular they argue that simple techniques focusing on human resources can overcome many onshelf availability problems. The final three chapters in the book take a somewhat different approach, by looking at aspects of technology use and environmental concerns in logistics. Whilst technology is implicit in many of the chapters that have gone before, here the focus is more explicit.

Here again, the focus is made explicit. Non-store shopping is of course not new. Systems to deliver products to homes have been around for a long time. The late s, however, saw massive hype around the development of e-commerce and predictions that over time though this varied enormously a significant proportion of retail sales would migrate to the internet.

The collapse of the dot com boom has brought such claims into stark reality.

Logistics and Retail Management: Emerging Issues and New Challenges in the Retail Supply Chain

Nonetheless, successful internet shopping does occur using a variety of models, and many retailers have essentially become multi-channel albeit skewed businesses. The future rate of growth will partly depend on the quality and efficiency of the supporting system of order fulfilment. Many e-tailers have developed effective logistical systems and built up consumer confidence in the supply and delivery operations.

The retailers themselves drive some of these choices, whereas other options may be constrained by consumer acceptance and desires from local government to manage the environmental issues of home delivery from multiple sources. This chapter reviews the development of e-tail logistics and considers the decisions that remain to be worked through. Since supply chains became the focus of attention some decades ago, many wild claims for various technologies have been made.

Technology implementation has held out promise of supply chain transformation. These promises have not often materialized. Today, RFID is seen as another technology that will transform the retail supply chain. But, despite its overt promise, RFID may have many implementation problems to overcome. The chapter asks whether one issue in technology introduction is the problem of matching people, processes and technology at a time when the technology is both simultaneously unready and being hyped, and the ramifications of extensive implementation inside an organization are under-analysed.

By focusing too much on technology and emphasizing the all-encompassing transformative properties, businesses may be missing opportunities for more specific benefits. In terms of RFID it would seem that the initial transformative promise has given way to a more measured consideration of where and how the technology is useful and precisely what benefits it can bring to retailers and their supply partners. Logistical activities are responsible for much of the environmental cost associated with modern retailing and it is thus not surprising that logistics is a key component of environmental strategy developed by retailers.

This chapter examines the adverse effects of retail logistics on the environment and reviews a series of measures that companies can take to minimize them. The authors conclude that large retailers have been a fertile source of logistical innovation and have pioneered many practices and technologies. If this changes, as seems likely, then those retailers already trying to minimize their logistical environmental footprint will have a significant financial advantage and will also probably be viewed more positively by consumers.

In any book on a topic as wide as retail logistics it is inevitable that some issues will be missed. We hope that those that we have included are of interest and demonstrate the complexity and challenge of modern retail logistics. As before, we have resisted the temptation to have a chapter focusing on future issues. Rather, we provide a brief afterword to highlight some of the issues we believe are important in our examination of changes and challenges in retail logistics. Product supply has been transformed in recent years.

The only thing we can be reasonably sure of is that changes will continue to be made as retailers continue to search for the most appropriate systems and practices to meet the changing consumer and operational demands. As before, the future remains challenging and exciting. The cornucopia of goods that are available in a hypermarket or a department store sometimes means that we forget how the products were supplied or what demands are being met.

We expect our lettuces to be fresh, the new Wii Fit to be available on launch day and our clothes to be in good condition and ready to wear.

ISBN 10: 0749468238

With the introduction of e-commerce we have come to demand complete availability and home delivery at times of our choosing. Consumer beliefs and needs have altered. How consumers behave and what we demand have changed. Our willingness to wait to be satisfied or served has reduced and we expect instant product availability and gratification. It should be obvious from this that the supply or logistics system that gets products from production through retailing to consumption has also had to be transformed.

Retail Digital Supply Chains: Facing an omnichannel customer-driven landscape

Physical distribution and materials management have been replaced by logistics management and a subsequent concern for the whole supply chain Figure 1. This consideration for the supply chain as a whole has involved the development of integrated supply chain management. More recently there has been a concern to ensure that channels of distribution and supply chains are both anticipatory if appropriate and reacting to consumer demand, at general and detailed segment levels.

This transformation in conceptualization and approach derives from cost and service requirements as well as consumer and retailer change see Fernie, ; Fernie and Sparks, , Elements of logistics are remarkably expensive, if not controlled effectively. Holding stock or inventory in warehouses just in case it is needed is a highly costly activity.

The stock itself contains value and might not sell or could become obsolete. Warehouses and distribution centres generally are expensive to build, operate and maintain. Vehicles to transport goods between warehouses and shops are not cheap, both in terms of capital and, increasingly, running costs. Building and managing data networks and data warehouses remain pricey, despite the huge cost reductions for equipment in recent years.

There is thus a cost imperative to making sure that logistics is carried out effectively and efficiently, through the most appropriate allocation of resources along the supply chain. At the same time, there can be service benefits. By appropriate integration of demand and supply, mainly through the widespread use of information technology and systems, retailers can provide a better service to consumers by, for example, having fresher, higher quality produce arriving to meet consumer demand for such products.

With the appropriate logistics, products should be of a better presentational quality, could possibly be cheaper, have a longer shelf-life and there should be far fewer instances of stock-outs. If operating properly, a good logistics system can therefore both reduce costs and improve service, providing a competitive advantage for the retailer.

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This occurs in many situations and has become increasingly important. This importance is both externally and, to a degree, internally driven. Externally, the awareness of environmental and sustainability issues has increased exponentially and retailers have had to respond to these pressures, both voluntarily and under legal requirement. Internally, retailers have become more aware that the benefits of having a system that is efficient and effective in meeting consumer demands can generate environmental benefits.

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  7. Being environmentally sensible can also sometimes improve efficiency and effectiveness. This is predicated on being fully aware of the impacts of decisions in logistics and on correctly mapping the processes and activities from both a supply and a demand point of view. As might be anticipated, as the practical interest and involvement in retail supply chains have risen, so too academic consideration has expanded.

    Previous editions of this volume have garnered considerable interest. Since the last edition was published in , three books explicitly on the retail supply chain have been produced Ayers and Odegaard, ; Hugos and Thomas, ; Kotzab and Bjerre, Our revised edition continues to develop the subject.

    This chapter sets the scene for the changes and challenges confronting retailers and their supply chains. Unfortunately that description does not do justice to the amount of effort that has to go into a logistics supply system and the multitude of ways that supply systems can go wrong.

    The very simplicity of the statement suggests logistics is an easy process. As Box 1. For example, if the temperature rises and the sun comes out in an untypical Scottish summer, then demand for ice cream, soft drinks and even salad items rises dramatically. How does a retailer make sure they remain in stock and satisfy this perhaps transient demand? Tibbett has responded by placing a senior director at the building to sort out the problems and establish a proper flow of stock to the stores.