“Retail Transition in India: Prospects & Retrospects”
*Dr. Uday Singh Rajput
**Dr. Deep Sharma
***Prof. Neeraj Dubey
*Asst. Professor, Department of Management Studies, Shri Ram Institute of Information Technology Banmore (Near Gwalior)
**Project Leader & Head, Entrepreneurship Development Cell, MITS, Gwalior
E-mail: firstname.lastname@example.org Ph.: 0751-4049317
***Sr. Lecturer, Department of Management Studies Shri Ram Institute of Information Technology Banmore (Near Gwalior)
RETAIL LOGISTICS: CHANGES AND CHALLENGES
Retailing is the India’s largest industry and one of the biggest requirements of the proper logistic service for its success. Retailing is the interface between the producer and the individual consumer buying for personal consumption. Consumer beliefs and needs have altered. Our willingness to wait to be satisfied or served has reduced and we expect instant product availability and gratification. It should be obvious from this that the supply or logistics system that gets products from production through retailing to consumption has also needed to be transformed. Physical distribution and materials management have been replaced by logistics management and a subsequent concern for the whole supply chain. This logistics transformation derives from cost and service requirements as well as consumer and retailer change (see Fernie, 1990; Fernie and Sparks, 1998). Elements of logistics such as transportation, stocking, inventory and warehousing are remarkably expensive, if not controlled effectively. Holding stock or inventory in warehouses just in case it is needed is a highly costly activity. At this position, there can be service benefits. By appropriate integration of demand and supply, mainly through the extensive use of information technology and systems, retailers can provide a better service to consumers by, for example, having fresher, higher quality produce arriving to meet consumer demand for such products. With the suitable logistics, products should be of a better presentational superiority, could possibly be cheaper, have a longer shelf life and there should be far fewer instances of stock outs. Reaction time to spurts in demand can be radically improved through the use of information transmission and dissemination technologies. If operating properly, a good logistics system can therefore both reduce costs and improve service, providing a competitive advantage for the retailer.
Keyword: Logistics, Retailing, inventory, service
Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges. With the advent of the Internet, retailers are facing a very powerful consumer that demands anything, anywhere, anytime. Customer loyalties are changing and price is no longer the only criteria to attract customers. Customers want the most out of shopping experience - personalized attention, personalized promotions and personalized advertising. Retail business needs to differentiate itself from competitors by providing superior customer service that includes management of your supply chain as well as distribution. In continuation, domestic logistics companies are planning significant investments to expand their portfolio of services. It is expected that in the next two years, the logistics sector will have undergone major changes, offering a wide spectrum of services. Consumer beliefs and needs have altered. Our willingness to wait to be satisfied or served has reduced and we expect instant product availability and gratification. It should be obvious from this that the supply or logistics...