If you are a retail manager, you know (or should know) that robust logistics management in retail is crucial for your business's growth. Improving this process can positively impact production costs, final product pricing, daily sales, and even customer loyalty.
At Optima Retail, we help you save on transportation costs, manage warehouse goods to prevent damage, loss, or theft, and deliver them quickly and accurately to your target audience, boosting your profitability.
One of the advantages of logistics is that, through technology, retail logistics can be more efficient today.
Distribution applications and process automation are revolutionizing logistics. As a result, consumer demands and expectations when purchasing products are also changing.
We must be aware of these changes because advanced companies are adapting their logistics processes to the speed, accuracy, and flexibility required by a market increasingly dominated by millennials.
Steps for Efficient Retail Logistics Management
Retailers should aim to offer a fast, engaging, and pleasant shopping experience. But if this is the case, what measures can you take as a retailer to manage your logistics efficiently? There are at least five key steps to consider:
1- Understanding the Retail Supply Chain
Beetrack, a provider of digital shipping solutions, offers some insights. First, identify the members of your supply chain: suppliers, distributors, and sales offices. Having these three actors work harmoniously is essential for logistics success.
The company also emphasizes understanding "what elements consumers seek in a delivery service today, such as delivery flexibility, delivery costs, and wait times." These are essential steps to reduce costs, improve management, and increase customer satisfaction.
As a retail owner, you must follow certain trends, depending on your business line, whether you are a producer or importer. In other words: You need to stay attuned to the market and constantly renew the logistics chain to satisfy your customers.
2- Securing Supplier Contracts
A good relationship with suppliers is essential. As a retailer, it's important to choose a supplier based on four factors: production capacity, transportation logistics, image, reputation, and sales levels and pricing.
Retailers who import product catalogs should also use the same criteria to select the ideal supplier.
3- Automating Storage
Storing your products is crucial to your logistics processes. Poorly managed warehouses can lead to issues in accounting and administrative audits.
They can also result in errors in final deliveries to customers, the so-called "ant hell" (where the loss of a small item can have a significant economic impact), and even damage to the merchandise itself.
The trend in retail logistics is to use an automated warehouse management system (WMS).
This facilitates the management of the supply chain, routes, and shipments. It also has the advantage of knowing where products are in the warehouse and the quantities available, optimizing land use and reducing product transportation time.
4- Taking Care of Stock and Packaging
To differentiate our products, we pay attention to every detail. Two of the most important are store stock, which is always kept up to date, and the time it takes for products to reach consumers in high-quality packaging.
Regarding stock, proper management prevents customers from abandoning a purchase because they can't find the product they're looking for.
Small and medium-sized retailers can benefit from a "point of sale" system that automates in-store product management.
Meanwhile, product packaging is no longer just a recyclable container: with the proliferation of e-commerce, as retailers, we must recognize that packaging is the first brand experience.
A good first impression is a key differentiator for brands and retailers, offering a unique and personal touch that is often overlooked.
5- Efficient Transportation
In general, most retailers still contract small providers who only handle part of the process, such as transportation, storage, and customs clearance.
While this remains the trend, we must rely on technology to improve our transportation systems: there are applications that simplify the process of shipping goods from distribution centers.
This service has managed to reduce delivery times by 15% for global companies that currently use it.
Additionally, there are other applications available to entrepreneurs looking to connect freight transport providers and users to facilitate logistics chain management. An application with these features can be of great value.
At Optima Retail, we are committed to always offering you the best solution. Our Quality Department continuously works to improve our service. Need assistance? We're here for you.