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Developments in Retail Logistics

Abstract In this article, the authors distinguish between in-store and out-store logistics. While the first may generate more value for the customer in terms of ease of shopping, pleasant ambience among other psychological factors, the second deals with cost cutting and generating better financial choices for the customer. Whereas both of these are critical and must have an interactive, synergistic effect, the in-store logistics force the retailer to control the total supply chain and the out-store logistics creates temptation for the suppliers and/or logistics firms to control the total supply chain. While the out-store logistics appear to play a major role in large scale retailing, in-store logistics are more critical for small scale retailers. Six key research propositions are presented throughout the paper to be used in the exploration of this rather neglected area. The authors maintain that if the overall function of the supply chain were to generate optimal results, the in-store and out-store logistics must work together so that the retailing sector can generate more consumer value. It is maintained that there is a need for better communication flow between the retailer and supplier through the modern information technology tools.