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The evolution of logistics in retail

Times are changing, and in an increasingly abrupt manner. Logistics, as part of commercial processes, is also evolving by leaps and bounds, and the retail sector is not exempt from this reality, evolving in parallel as well.


Long gone are the days of catalog sales systems or specialized stores. The use of a computer connected to the internet or a mobile device has significantly replaced many traditional commercial transactions, quickly transforming into what is now called e-commerce.


ogistics in retail

As depicted, the situation is mutually beneficial: customers don't have to move to make a purchase, and entrepreneurs, whether small or large, can restructure their systems, dispensing with intermediaries such as chains, stores, or warehouses.


However, many logistical challenges flourish in the shadow of the digital universe. It is a priority to conduct studies on the profitability of certain processes so that they do not cause the business to collapse. The changes imposed by the digital age require a lot of analysis for the retail world.


Retail and logistics


Retail, or as it is commonly known, is the most common and widely disseminated form of commerce everywhere. In almost all societies, there are spaces for mass commerce where you can find almost anything imaginable, catering to a large and diverse audience.


Retail sales are a daily occurrence in cities, and it's a fact that makes the process of acquiring any goods simpler. However, thinking about commerce immediately brings to mind logistics, which plays a crucial role in the distribution of products.


Retail and Logistics

Until a few years ago, the boom of online marketing made the idea of logistics, especially regarding hiring, reconsidered. Nowadays, it is once again being confronted, stemming from the circumstances created by the pandemic across the entire commercial sector.


Furthermore, the demands of the public have changed. The decision-making process regarding the acquisition of a product is subject to many variables, and one of them has to do with obtaining the product physically: wait times, when the purchase is remote, are a determining factor.


The evolution of logistics in the retail sector


The new market dynamics have fostered alternatives that go hand in hand with emerging technologies. It's important for each company to select what suits them best to ensure that the results meet their expectations and that the customer is satisfied.


Five important points can be mentioned regarding the improvement of logistics in the retail sector:


1- Automate picking


Automating picking, which refers to the preparation of orders, can significantly improve various processes such as packing, product sorting, and reducing lead times until shipment.


2. Improving communication


Not only using social media for advertising but also as effective and friendly communication channels with customers, so they feel a more personalized and unique treatment.


Evolution of logistics

3. Sustainable development


The use of biodegradable materials in product packaging and packing reduces weight, improves lead times, represents considerable cost savings, and makes the process eco-friendly.


4. use of advanced technology


Big Data, Artificial Intelligence, or many other cutting-edge systems can become productive allies for the company. Through them, user habits and consumption niches can be profiled, and delivery times can be objectively monitored, among many other aspects.


5. e-commerce management


Modern strategies are leading a path towards the increasing usage of electronic devices and internet, applied to commerce and marketing. Logistics are in need to adapt and adopt new trends such as sustainable deveolpment.


logistics and retail: evolution towards e-commerce


It's a fact that traditional sales, whether through catalogs or physical stores, are experiencing a decline these days. Despite consumers expressing a desire to return to physical stores, the reality is that online sales are dominating commerce and consumers


retail and ecommerce

The retail sector has been compelled to dive into e-commerce, and this trend has gained even more momentum in this post-pandemic period, where the majority of stores and businesses have adapted their sales and purchases to online commerce.


But, to enter this electronic realm, retail entrepreneurs need to manage some aspects:


Omnichanel


To explain this term simply: everything that is seen online will be seen physically. However, in the logistical realm, the matter is not so easy. With no intermediaries, when a product is marketed digitally, costs decrease, but logistical costs can increase due to picking and exceeding delivery times.


In this point, its important to stablish strategic aliances to accomodate costs.


Packaging and distribution


At this stage, it's crucial to understand which products are predominantly sold electronically and the actual delivery times across various ordering locations. It's essential to acquire a robust e-commerce platform that oversees the process and, ultimately, ensures customer satisfaction.


Tecnolgy


Having good management software, along with real-time statistical data, will provide a live insight into the logistics processes, resulting in overall improvements to the commerce system.


service and attention


When choosing to sell online, it's crucial to focus on customer retention. A robust CRM (Customer Relationship Management) system can assist with this. Today, it's possible to manage customer relationships and sales directly from a mobile device and even through social platforms like WhatsApp or Telegram.


 

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With predictive maintenance, you can monitor the status of your equipment in real-time and anticipate potential failures before they occur. This means less downtime, lower maintenance costs, and more efficient production. It's like having a superpower for your Retail!


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