Retail and logistics: When opposites come together.

Today, retail and logistics are becoming increasingly closely related, interacting and influencing each other. Whereas in the past, retailers were simply the receivers of the product from manufacturers, today they have become, in many cases, designers of the offer themselves, since they control, organise and manage the supply chain from manufacture to consumption.

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Times have changed and, with them, retail logistics. This is a natural evolution, but one that has been greatly influenced by the growing need to improve efficiency in supply chains.

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This evolution is reflected in a growing tendency among the retail sector towards increasing the integration of logistics processes and taking on more and more of the responsibilities for commercialisation and product development that were originally the domain of manufacturers.

Examples of this can be found in all retail segments, but it is most visible in large-scale distribution, where the chains operating in the sector are increasingly seeking full control of the entire chain by investing more in their own brands, which, although produced by third parties, are normally controlled by the retailer.

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What does the future hold?

The potential for greater links between the retail and logistics sectors are numerous, but they will only be realised if there is complete alignment of objectives and expectations on both sides.

Retailers and logistics operators need to be able to be in tune when it comes to their strategy, so that the opportunities that exist can be realised.

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Among these opportunities, there are some that stand out for their greater impact on companies:

Efficiency and productivity gains, which will allow the end consumer to have access to the same products, but at lower prices.

Greater control of the supply chain, as a way of optimising deadlines and thus increasing efficiency in stock management.

Optimisation of the last mile, as a way of responding to new consumer trends by getting the product to the end consumer more quickly, while at the same time improving the delivery experience.

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On the other hand, the challenges exist and must be clearly pinpointed if they are not to be an obstacle to the opportunities of this greater connection between the sectors:

The conflicting objectives between the two sectors must be mitigated in order to find a balance in relations;

The alignment of strategies is fundamental to being able to respond to the growing needs and expectations of consumers.

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Knowing that the opportunities and challenges facing the retail and logistics sectors are many, greater connection between them is more than a necessity, it's an obligation, which will have to occur if they are to be able to face the uncertain times ahead.

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Admittedly, this greater integration between these sectors raises numerous issues and barriers that will have to be overcome, but the gains that exist for both the retail and logistics sectors, as well as for the end consumer, are enormous and cannot be wasted.

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Collaborative article by Retail Mind Group's Real Estate and Retail divisions.