The Role and Impact of Transportation & Logistics Management in Retail Distribution
Transportation and logistics management impact nearly all economic activities in modern-day businesses and interactions between customers and providers. These processes are intrinsically connected to the ability of the retailer to get their products on shelves. The difficulty of providing said product to them affects the price at which it is sold.
The length of the journey determines how long it would take for the retailer to receive the product (Harrisson et al., 2019). In the case of perishable products, logistical inefficiencies can rule out suppliers outside of a certain range. Overall, it is a critical process for a retailer to keep track of to be successful.
Economic Drivers, Challenges, and Logistics Solutions in the Retail Context
Distribution networks affect the ability of retailers to generate revenue and create self-sustaining economies. Generally, the closer the producer is, the cheaper and simpler the logistics get (Waters, 2019). However, no community alone can produce everything its business needs without suffering exorbitant expenses that make the entire venture unviable. Whether companies want it or not, they must import goods and materials from other places, thus doing their part in regional or worldwide globalization.
There are many challenges to transportation and logistics management within the economy. While globalization is still a predominant trait of the existing system, it is being challenged by various political crises and wars (Zijm et al., 2019). These hurdles make transportation slower, less reliable, and more expensive in the long run.
The state of the economy defines how logistics are conducted – typically, the better the economy is, the more streamlined and reliable its logistics become (Zijm et al., 2019). Rich countries can afford good roads, proper repairs, and new ships to do their business. Poorer ones typically suffer from a lack of critical logistical infrastructure, corruption, and poor governance.
Sustainability, Innovation, and Future Pathways for Transportation & Logistics Management
A potential solution to improve the situation with logistical management challenges in struggling countries would be to invest in the improvement of their logistical network. Building roads and ports would decrease the costs and time associated with hauling goods and materials from point A to point B (Waters, 2019). Improvements to governance would reduce bureaucratic and administrative hurdles to trade (Waters, 2019). At the same time, companies could build their logistical lines through places with better logistics to achieve maximum success.
References
Harrison, A., Skipworth, H., van Hoek, R. I., & Aitken, J. (2019). Logistics management and strategy. Pearson UK.
Waters, D. (2019). Supply chain management: An introduction to logistics. Bloomsbury Publishing.
Zijm, H., Klumpp, M., Regattieri, A., & Heragu, S. (Eds.). (2019). Operations, logistics, and supply chain management. Cham: Springer.