Example of Supply Chain in RetailSUPPLIER FACTORY DISTRIBUTOR WHOLE SELLER RETAILERRaw Materials Finished Goods Information Flow
Need of SCM in Retail• Cost Cutting• Time Saving• Customer Satisfaction• Increase Profit Margins
Need of SCM in Retail• Physical Flows• Information Flows• Financial Flows
Functions of Retail Supply Chain• Physically movement of goods from one outlet to another.• Stocking the good at the outlets where needed.• Management of the entire process.
Retail LogisticsRetail logistics is the organized process ofmanaging the flow of merchandise from thesource of supply to customer.The main objective of logistics managementis to reduce the inventory – holding cost andimprove profits
New Emerging Concepts of Logistics• Third party logistics Supply of logistics related operations b/w traders by an independent organizations. ex- Federal Express, DHL, Maersk Logistics.
Contd….Fourth Party LogisticsIt refers to the evolution in logistics fromsuppliers focused on ware housing andtransportation to suppliers offering a moreintegrated solution
Contd…Reverse Logistics Process of moving goods from their typical final destination, for the purpose of capturing the value or proper disposal . Stands for all operations related to the re use of products & materials