The world of retail has undergone big changes in recent years, primarily driven by the surge in e-commerce and online shopping.
As a retailer, you already know how crucial it is to keep up with these changes to stay competitive.
But to truly thrive in this evolving landscape, you need to go beyond just selling products. You need to master logistics — a vital part of your business that ensures your products get to your customers quickly, efficiently, and cost-effectively.
This article explores logistics solutions for the modern retailer. We also share ‘golden nuggets’ from a delivery expert to help you succeed.
Importance of retail logistics
You are going to be left standing in the dust if your retail operation doesn’t work effectively. Consumers today want items quickly, or they’ll get it somewhere else. Customer experience in a competitive landscape is important.
Australian expert and founder of Zoom2u Technologies (ASX:Z2U) Steve Orenstein gives a ‘golden nugget’ when it comes to customers and their reviews.
“Great customer experience attracts great reviews, and that experience is not only about the product they bought from you, but also how it was delivered,” says Orenstein.
Picture this: You own a retail store with its own logistics department.
This department is experiencing delivery delays due to increased demand and urban congestion.
Customers start flooding your customer service lines, asking where their packages are and demanding refunds.
You realize you lack the technology to provide them with real-time updates, further aggravating their dissatisfaction. You cannot afford to lose customers, especially close to the holiday season.
How you deliver your customer’s much-loved items is vital. Here’s some elements that will help put you on the right track.
Key aspects of good retailer logistics
To succeed in retail logistics, there are several key aspects you should focus on:
Speed
Fast delivery is no longer a luxury; it’s a necessity.
Picture this: You run a thriving online retail store specializing in electronics. A customer places an order for the latest Apple iPhone, expecting it to arrive by 5pm the same day.
Your driver is dispatched with a physical address only. He knows the city out the back of his hand. Technology, whatever.
However, without a proper route optimization tool, your delivery driver takes an inefficient route, leading to unexpected traffic delays and missed delivery windows. Utilizing technology for route optimization can help make better informed decisions, ensuring timely deliveries.
The Apple iPhone arrives one hour later than scheduled. The customer is unimpressed and frustrated.
The customer signs the proof of delivery and accepts the package. This is an urgent order for a birthday gift. But the customer leaves a negative review on your website.
Advice from an expert: “I can’t repeat this enough: making sure the customer experience is good is more important today than ever before,” says Orenstein.
How can I speed up my product delivery?
You can use route optimization software to plan the most efficient delivery routes for drivers, taking into account traffic, weather, and other real-time factors. Retailers often purchase goods in large quantities from manufacturers or wholesalers, making efficient delivery crucial to manage inventory and meet consumer demand.
Optimizing routes can significantly reduce delivery times, especially in areas where traffic can be a major delay factor.
Locate2u has route optimization software that can help your business.
ALSO READ: Adaptive retail explored: Walmart
Accuracy
Nothing frustrates a customer more than receiving the wrong item. Retailers often purchase products in bulk and sell them directly to consumers in small quantities, highlighting their operational focus on end consumers. Ensuring accurate order fulfillment should be a top priority.
Problem-solving is key. “If you can make sure that when there’s a problem the customer has the option to give feedback directly to you. You can fix it quickly and they are more likely to feel looked after than frustrated,” says Orenstein.
Put customers in the driver’s seat with visibility
Providing business customers and end consumers with real-time tracking information can enhance their shopping experience and reduce anxiety about their purchase.
Let your customer track the delivery to their doorstep.
Give customers flexibility
Offering multiple delivery options can cater to the needs and preferences of your target market.
Some customers might be willing to pay more for same-day delivery, while others prefer a more economical option.
Streamline operations
Streamlining your logistics operations can reduce costs. Manufacturers play a crucial role in the supply chain, providing products to retailers who then serve consumers.
This includes optimizing your warehouse layout, automating repetitive tasks, and leveraging technology to improve overall efficiency.
Let’s recap
- Logistics is more than just a support function in the retail industry—it’s a strategic differentiator.
- Focus on good retail logistics, it can enhance your customer experience and help drive business growth.
- Logistics isn’t just about moving products, but how they are delivered.
NOW READ: Amazon’s ambitious drone delivery plans hit roadblocks
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
