Trade Logistics

What is trade logistics?

As definition and explanation can be said that one understands all logistic processes of an enterprise in connection with material and goods flows as well as information flows within the procurement logistics by trade logistics. In addition all processes of the commercial logistics belong, which occur regarding customers, retailers as well as manufacturers and suppliers and the enterprise or also such logistic processes, which happen both inside and outside of the commercial enterprise.

How does retail logistics work?

Retail logistics works when the internal processes, flows of goods and information meet all the requirements of the merchandise management system and warehouse management through the selection of a concept that is right for the retail company and an efficient warehouse strategy. Only then are the required goods and trade goods quickly accessible from the warehouse and goods distribution centers and can be made available for transport to the customer, retailer, manufacturer or supplier by the appropriate service partners.

Basically, trade logistics deals with the question of whether a trading company handles certain trade goods directly and sends them through service partners to the customer, retailer as well as supplier or whether the trade goods are stored beforehand. The faster the goods arrive at the customer or supplier, the better. Managing this is a major challenge for every retail company and thus for retail logistics.

In order for the flow of goods and ultimately trade to succeed without any problems at all, the flow of information and communication with suppliers is of crucial importance. The information flows of the individual processes from the areas of logistics, warehouse management, procurement logistics and distribution logistics must run precisely and in a coordinated manner.

All deliveries must be precisely matched to the needs and requirements of the individual retail companies so that the internal processes and goods flows of the goods distribution centers are not disrupted and, as a result, warehouse capacities are not overloaded. This also saves on excessively high storage costs that retail logistics entails.

What is the goal of retail logistics?

The ultimate goal of retail logistics is the effective provision of all retail goods and sales merchandise in the goods distribution centers in order to minimize storage costs and generate the optimum profit for a retail company. Both the optimization of the management processes and the logistics processes in conjunction with an inventory management system that meets the customer's requirements allows a retail company to be successful in the end. 

To ensure that certain products and trade goods are always available at the "point of sale" (POS), the flow of goods must be carefully thought out and systematically planned beforehand. If a retail company has understood the goal of trade logistics, this brings the great advantage of not having to store trade goods and sales merchandise for a very long time, but rather to handle the respective goods and merchandise more frequently and to ship them immediately to customers or manufacturers through the corresponding service partners. 

Conclusion

In terms of increasing digitalization and customer expectations, retail logistics has taken on a very important and significant role now and in the future. This means that without a good strategy and a carefully thought-out concept, there is no well-functioning retail logistics for industry as well as for retail. Only through constant further development and modification of individual logistics processes in retail and distribution logistics can all customer requirements be met and thus the profit of a company maximized.

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