Retail Supply Chain Management
Retail Supply Chain Management is the backbone for success in any kind of retail business
Note: 4.5/5 (1 notes) 708 students
Instructor(s): Management Study Guide
A strong and efficient ‘Retail Supply Chain Management’ and ‘Logistics System’ provides a firm foundation and backbone for success in any kind of retail business whether the retailer comprises of street vendors, local grocery stores, supermarkets, automobile showrooms, internet kiosks, home appliance showrooms, direct marketers, etc. A ‘Supply Chain’ is the sequence of organization of facilities, functions, and activities that are involved in producing and delivering a product or service. A ‘Supply Chain’ is also known as ‘Value Chain’.
Supply Chain is the flow and management of resources across the retail enterprise for the purpose of maintaining the retail operation profitably. ‘Retail SCM’ can be defined as the management of a network of all retail business processes and activities involving procurement of raw materials, manufacturing and distribution management of finished goods to reach the end user. SCM is also called the art of management of providing the Right Product, At the Right Time, Right Place and at the Right Cost to the Customer.
Retail Supply Chain Strategies are the critical backbone of retail businesses today. Effective market coverage, availability of products at locations which hold the key to revenue recognition depends upon the effectiveness of Supply Chain Strategy rolled out. Very simply stated, when a product is introduced in the retail store and advertised, the entire retail stores in the country and all the sales counters need to have the product where the customer is able to buy and take delivery.
Any glitch in the product not being available at the right time can result in drop in the customer interest and demand which can be disastrous. Thus, design of transportation network and management assume importance to support retail sales and marketing strategy. Inventory control and inventory visibility are two very critical elements in any retail operations as these are the cost drivers and directly impact the bottom line in the balance sheet.
Inventory means value and is an asset for the retailer. Every retail business has a standard for inventory turnaround that is optimum for the retailer. Inventory turnaround refers to the number of times the inventory is sold and replaced in a period of twelve months. The health of the inventory turnaround relates to the health of retail business.
|Don’t miss any coupons by joining our Telegram channel|