Retail Supply Chain Management: An Introduction

Due to globalization, the retail industry has been expanding its operation beyond the borders. Moreover, retail industry is very dynamic; they have hundreds of suppliers and thousands of stock keeping units. To meet these challenges, retail industry is beginning to implement the Supply Chain Management (SCM) that creates a balance between customer requirements and supply chain capabilities. To increase the efficiency and effectiveness of service, retailers have to collaborate with all the parties concerned and coordinate all the processes in their supply chain. To improve profitability and efficiency, retailers are seeking ways to achieve operational excellence. SCM enables the retail industry to bring reliability, responsiveness, flexibility, cost reduction and process efficiency in the retail industry. It can assist retailers through strategic planning of demand and supply and effective utilization of inventory, distribution, warehousing and transportation by ensuring that the right product with right price available at right time for consumers. Today, retailers are laying more emphasis on the supply chain to transform their business model. The success of business in the retail industry depends on good customer experience, implementation of new technologies, accurate forecasting, managing outsourcing and cost management. Technologies like RFID, Internet, Database management are enabling the retail industry to become more competitive. Online retailing has become inevitable in the current scenario. In the cut-throat competitive market circumstances, the retail industry needs effective retail supply chain management to expand its market share and increase its bottom line.