Essay: Supply Chain Management by Retailers

Retailers can incorporate the supply chain and logistics for the following reasons:

• A transparent and synchronized supply chain will enable an automated system that gives signals to suppliers for replenishment of stock. An almost real time system can be implemented to support the supply chain and it enhances relationships with partners as well.
• It will help in streamlining all retail operations.
• It will also help in creating the right mix of products to give more importance to high-value customers and separate them from the low-value or no-value customers.
• I will save lead times and wastes.

Logistics and SCM helps retailers to include the consumer in the supply chains, manage product life cycles, promotional planning, planning for seasonal products, category management, cost-effective supply channels and planning capacities at the store level (Hendrickson et al, 2001).