Question

When the retail industry shifts from big-box retailers to on-line retailers, how the logistical trend changes?

Answer 1

With the advent of technology and social media, there has been a paradigm shift in the retail industry. The offline in-store retail industry has inculcated the social media trend and has transformed itself into an e-retail industry. This paradigm shift has caused considerable changes in the logistics management of the industry. When the industry was more about in-store experience, customers used to hop in the stores to have a feel of the product and accordingly make the purchase. In such an scenario, heavy inventory was maintained in the stores rather than the warehouse. Moreover the logistics was concerned for getting the products from the warehouse to the store.

With the advent of e-retail, the role of logistics has evolved. There is no need to illustrate the products in store. Instead the products are displayed on a website, where the customers can browse through and make the purchase. Once the purchase is done, the logistics department comes into action. they need to pack the product properly and then dispatch the same to the customers. Logistics need to ensure that the order reaches the customers within the promised delivery time. In my views, logistics has become more crucial in e-retail segment.