Retail logistics is the process of managing the flow of cargo from the supplying source to the final customer.

Large retailers deal in varieties of products, which require systematic planning of movement of amounts of goods until they are final delivered to the customers. Retail logistics makes sure that everything is in place to offer the best delivery and service at lower costs by different methods of efficient logistics and additional value.

Functions of Retail Logistics System

  • The increasing kinds of products in stores force retailers to follow an efficient logistics system. It handles the movement of goods from producers or middlemen to warehouses and arranges for their transport to retail units until they are sold and delivered to customers.

  • The system will deliver the right product to the right customers at the right time to meet customer requirements. This requests planning from the point of origin to the point of delivery.

  • Logistics systems deliver orders in a cost-effective manner, enabling current and future profit maximization.

  • It ensures warehousing, transportation, inventory, and management. The interrelationships among these elements are effectively coordinated.

The Retail Logistics System strives to add value to customers. To this end, the cost elements in the supply chain will be directly controlled by the retailer. Depending on the volume of sales, the retailer creates a central or regional distribution center. They decide to make major investments in property, plant, and equipment with associated management fees.

To summarized, retail logistics owns the functions of the physical movement of goods, the holding of the goods in stockholding points, the holding of goods in quantities required to meet demand from the consumers, and the management and administration of the process in the modern complex distribution system.