The final 50 yards of retail logistics can be 50% of the
costs, so there is huge room for improvement. One of the
reasons is that in the past once stock arrived in the back
door it was seen as a retail operations matter. With space,
staff and skills lost to the sales floor, retailers have
been paying the logistics price. There is lack of
traceability and high handling costs.
A new approach is needed where warehouse skills are used to manage stock from the delivery vehicle to the retail shelf. Supply chain costs and responsibilities should not stop at the retail store, but on shelf delivery should be integrated with the rest of the supply chain.
Rewards will include faster shelf replenishment, increasing availability, sales and customer satisfaction, while bringing faster vehicle turnaround and better handling of returnable assets and reduced costs.