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LogistikPlan industry sector: Retail

Retail in transition

No other industry is currently undergoing such a far-reaching transformation as wholesale and retail. With more than 3 million employees, the sector has extensive geographic coverage and a very high level of logistics maturity.

Ongoing digitalization is driving a rapid shift in revenues from brick-and-mortar retail toward e-commerce. At the same time, countless new players enter the market year after year, achieving in some cases highly dynamic growth.

►  Retail: from brick-and-mortar to e-commerce
      Four mega-trends from LogistikPlan’s perspective

►  Acceleration of logistics processes

The speed of retail logistics processes will increase significantly, as time becomes a critical competitive factor in the race for online customers.

In the future, same-day delivery for consumer goods and fresh products will become standard in Europe, with 12-hour, 6-hour, or even 2-hour delivery windows. This acceleration has major impacts, including

  • shifting demand peaks over the course of the day,
  • increasing shift work with night premiums,
  • growing nighttime deliveries, especially in city centers.

►  Individualization of logistics processes

Individualization in retail logistics processes will increase significantly, driven by factors such as

  • the combination of individual sales channels into multi- and omni-channel concepts
  • expansion of delivery points, from parcel shops and lockers to car trunks
  • adaptation of logistics services to specific target groups (e.g. home delivery for elderly people)
  • technological methods of single-item production (digital printing, 3D printing)

►  Automation of logistics processes

Automation in retail logistics processes will increase significantly, driven by

  • greater consolidation and acceleration of goods flows
  • standardization of logistics parameters such as packaging, labeling, and billing
  • closer integration of retail and logistics services with customers and their consumer devices (e.g. refrigerators, washing machines)

►  Quality and environmental protection

Quality assurance and environmental protection in retail logistics processes will increase significantly, driven by

  • direct consumer feedback via the internet
  • growing governmental and voluntary regulations (e.g. returns handling, defect remediation, take-back of used equipment)

  Wholesale: integrated with customer logistics

  • Industry developments:
    • As a result of trade globalization, service orientation, and e-commerce growth, wholesale and specialized wholesale trade are increasingly expanding their traditional core business – the trading of industrial and consumer goods and associated services.
    • At the interface between industry and retail, wholesalers ensure precise supply and redistribution of goods through highly developed logistics systems, handling warehousing and transport optimization, quality assurance, and assortment management.
  • Key aspects from LogistikPlan’s perspective:
    • Low-cost online retailers are increasingly pushing advisory-oriented specialist wholesalers into the role of high-quality regional service providers.
    • In B2B business, wholesalers will need to integrate much more closely with their customers’ processes as logistics partners.
    • IT-based integration of material and data flows will intensify. Wholesalers must rely more strongly on standardized concepts for ordering and labeling, transport, and container systems.

►  Foreign trade: navigator in global goods flows

  • Industry developments:
    • As an export champion, Germany has been an international trading powerhouse for many years in both import and export business. Foreign trade companies handle global trade in industrial and consumer goods:
    • Export traders place German products with industrial and consumer customers in all foreign markets and cover all export-related services, from market entry, financing, and insurance to after-sales service and spare parts business.
    • Import traders supply German and European industry with raw materials, semi-finished, and finished products from abroad. As partners of developing and emerging economies, they transfer know-how on advanced production and product standards to local companies.
  • Key aspects from LogistikPlan’s perspective:
    • In global trade, foreign traders are increasingly becoming navigators for their customers and managers of complete logistics process chains.
    • To protect customers against uncertain markets and supply disruptions, traders must assume greater responsibility – from strategic consulting and risk monitoring to operational dispatching.

►  LogistikPlan supports trading companies

  • with forward-looking site and shipping strategies for growth and regional and international expansion
  • with the planning of traditional logistics centers, warehousing, packaging, and shipping solutions
  • with the implementation of proven logistics strategies such as Kanban, Just in Time (JIT), and Just in Sequence (JIS)
  • with the introduction of innovative automation solutions
  • with management consulting for organizational and personnel development
  • with coaching and interim management for restructuring and process optimization.

Within the LogistikPlan competence field Wholesale and Retail, we are happy to support you with our industry and methodological expertise – simply request our service profile free of charge:

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