What is Retail and Market Logistics

One of the changes the companies are looking forward to is the move towards the value network. As conventional supply chains are becoming obsolete, value networks are showing more and more promise. In value networks, instead of being customers, retailers and wholesalers are thought of as partners of the suppliers. But to successfully design a marketing channel under the principles of value networks, companies have to understand their partners, their roles, and the importance of each of them.

So, What is Retail and Market Logistics? Let’s take a closer look



To put it simply, retailing is the act through which goods and services reach the customers. The end customers can then use those goods and services for individual or business needs. The parties that sell the products to end customers are called “retailers.” Any of the partners can work as a retailer. That means that manufacturers and wholesalers can act as retailers in certain situations.

Furthermore, retailers can use physical stores or the Internet to reach their customers. Organisations that deal with end users are split into three separate categories: store retailers, non-store retailers, and retail organisations.

Store Retailers

When it comes to store retailers, the best examples are the likes of Sears or other department stores. And as we know, stores are incredibly popular with the consumers. In fact, over 90% of products reach the customers through store retailing.

Non-Store Retailers

However, non-store retailing has been on the rise lately. Retailing methods such as direct selling, direct marketing, buying service, or automatic vending are garnering a significant market share. The most famous example of direct selling is Avon, for direct marketing, the best example would be the retail website Amazon.com, and automatic vending is something we have been seeing in our everyday lives for years in the form of vending machines.

Retail Organisations

Stores that are owned by corporations are called retail organisations. These organisations are making it easier for companies to maintain customer satisfaction and brand awareness than retail stores. The best examples of retail organisations are chain stores and franchises.


The Importance of Retail Strategies

In order to succeed, every retailer must work out a good business strategy. They have to analyse the market and use data they have to organise in-store promotions. Furthermore, proper product assortment in the stores can play a huge part in the success of a retail store.



Wholesaling is the act of buying goods in order to resell them to customers. However, in this context, farmers and manufacturers do not fall into the category even if they fit the description.

Wholesalers have the ability to increase the reach of company products. For that reason, they are an incredibly important element of the sales channel. They usually have their own storage units, and they can greatly decrease the cost of business for companies. Also, they can save a lot of time for the end consumers.


Marketing Logistics

If companies want to reduce the costs of doing business and increase their productivity, they have to manage the supply chain effectively. That is where marketing logistics step in. They are there to create the infrastructure that helps move the gods to the point of sale. And marketing logistics are there to do so in a timely manner and without spending too much money.

The fact that logistics teams have to balance between the high-quality fast service and low costs means that the process of planning the logistics strategy can be very difficult. They have to make decisions about order processing, warehouses, and transportation.

For that reason, companies are looking forward to the day they when they’ll be able to shorten the order-to-payment cycle. After all, long cycles mean high costs and low customer satisfaction.

The next most important aspect of marketing logistics includes the warehousing of goods and managing inventory. Companies have to strike the right balance between the rate of sales orders coming in and finished goods in nearby warehouses. So using warehouses that are at strategic locations can make it a lot easier for companies to operate efficiently.

Inventory management is also incredibly important. After all, no company wants to see their inventory piling up. That is why the schedule of raw material shipments has to match the frequency of customer orders.

And finally, we have to consider the costs of transportation. Since freight and transportation can end up costing a lot of money, they definitely influence the final price of the product. Not to mention that the shipping process can affect the condition of the product. That is why companies have to choose between private, contractual, or common carriers.

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