The sector and logistics of retail

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The sector of logistics & retail is comprised of the companies who are related to the management of goods which includes jobs like transformation, delivery, collection, etc. it is made up of large gathering of companies which rely upon the collection of their goods from their native places and the delivery of their goods at the desired place on the right time. The basic concern in this field is the delivery of the goods whereas in some conditions it is possible like the goods may be perishable sometimes like fresh vegetables, meat, etc which carry a very short shelf life with them.

Thus, the goods should be moved in a proper and an efficient manner which also helps in minimizing the stocks and wastage. The primary aim in this field is to improve the efficiency of the supply chain and planning processes.

1.3 Definition of problem:

The study is basically focused on the retail industry and the convenience stores. The basic concern with the retail and distribution is the availability of product and the flow of product and information regarding the product in front of the customers (Sparks, 1998).according to Fernie and Sparks there had been a revolution in the history of logistics supporting the retail industry in the 1980's. This all included the change in the management of the functioning of logistics, style of delivery changing into a centralized system from a store-to-store delivery system.

Most of the popular companies in the retail and the logistics sector face problems due to heavy performance. Due to this the final customers either have to buy, rent or reserve stock also on an expensive rate. Solutions for the customers individually are difficult to maintain which has a negative impact on the business. Some of the enterprises, basically the SME's need these type of services.

But, if the traditional ways of maintenance is followed, it becomes a high level barrier which proves out to be mainly for the medium scale enterprises. Another technology which has come into act is the grid technology. It has simplified the problems technically and some of the problems occurring internally in the business .Fernie and Spark (1998) stated that the technology in this time was quite facilitated which helped to increase efficiency of the distribution network helping out with material handling and also the flow of information inside the supply chain.

1.4 Purpose of study

The overall purpose of my research is to visualize the involvement of logistics in the retail industry. Also, on the other hand concentrating on how TESO is managing and operating its business all across the globe. In doing all the stuff what all aspects such as the strategic fits, IT factors, distribution factors, etc are managed by the retail chain.

1.5 Dispositions

For having an easier view of the overall thesis, a flowchart of the whole thesis has been represented as under. It gives the preview of the whole thesis as what part of the thesis is covered in what chapter of the thesis.


In this chapter, the present background is described in brief and that is retail convenience stores. The definition of the problem is followed by the thesis purpose and in continuation each chapter of the thesis is given in short to make the things easier for the reader.


This chapter gives the brief outline of the references used throughout the thesis. All the theories which and the data which has been used in the report has been briefly described in the context as if, form where it has been taken, why it has been taken, etc. Thus, it gives a concise view of the basics of the report from where it has been designed.


This, chapter explains the strategy of the research and the approach in which the report has been presented. The methodology and the reasoning for the report have been properly excavated in the theory. In continuation the detailed form of the data has been provided displaying the quality of the report.


The fourth chapter is formed of the provisional study. The problems regarding the topic like the business overview, the profile of the industry and in many aspects the operation in the company as well has been illustrated in the chapter. Basically, in this chapter is an overall report is combined and presented as a whole.


This chapter analyses the empirical study. The outcomes, the approach being followed in the framework are assessed on the base of outputs and this all is done on the base of the frame of references which had been used in the second chapter.


This chapter summarizes the entire report which is presented and clarification to the purpose of thesis in the analysis part is done.

Frame of references

2.1 Theories

The report is mainly concentrated upon the TESCO retail chain, illustrating how the supply chain management goes on with the delivery of products and services to the customer in the end. Also, the three main parties involved in the process are the suppliers, distribution center and the outlet stores. It can be easily made out that what organization is how much closely linked to market by just judging out the standards of the supply chain. Then, later on it comes the logistics and the distribution, as these are the elements which are the link between the market and the retail industry. Later on, they are followed by the distribution theories in which the report tells us about the warehousing and centers of distribution.

2.1 Choice of Theories

This paper has much concentration in 7-Eleven supply chain, specifically how supply chain

management plays in delivering products and services to the end customer. In addition to this,

the three main parties are involved: suppliers, Distribution Center (DC), and the stores.

Firstly, the competitive advantage and strategic fit within supply chain, demonstrate the

linkage of market and firm strategic management within supply chain and consequently how

they lead to competitiveness. Secondly, the authors move to the importance of logistics and

distribution and how these elements link marketing in retail industry. Thirdly, theories

according to distribution are presented. Next, authors go through the warehouse and

distribution center as they are the node of connection, how they are run, and lastly, theoretical

frameworks on the Information Technology that connects chain members are explained.

2.2 Competitive Advantage and Strategic Fit within Supply Chain

Competitive advantages are the collection of superior competencies that create customer

value (Morash, 2001). Firms deliver products and/or services which exceed the customer

expectation, have more possibility to sell. According to Holcomb (1994), supply chain

management now has emphasis on shaping competitiveness and profitability (cited in Tracy,

Lim & Vonderembse, 2005). While some strategies create competitive advantages may be

easy to imitate by competitors, the competitive advantages that routed from the chain efforts

are harder to copy. Effective supply chain, thus, offer the opportunities to create sustainable

competitive advantages (Cooper et al., 1997; Higginson & Alam, 1997 - cited in Tracy et al.,


As firms play along together in the supply chain to achieve competitive advantage and win

the orders at the bottom line, all members of the chain need to synchronize their strategies

toward the end customers' direction. This means supply chain strategy and competitive

advantage must fit together and the consistency between customer priorities and supply chain

capabilities must exist (Chopra & Meindl, 2007). In order to achieve the strategic fit, firms

should be able to understand and wisely exercise their customer needs to match their service

requirements. Chopra and Meindl (2007) add that firms are able to design supply chain in

delegating tasks as to outperforming competitors from other chains by matching the

competitive advantages the supply chain have with what of the customers desire.

The Council of Supply Chain Management Professionals (CSCMP) defines Supply Chain

Management (SCM) as "the planning and management of all activities involved in sourcing

and procurement, conversion, and all logistics management activities." It also includes

coordination and collaboration with channel partners which help to integrate supply and


demand management within and across companies. (See The activities from

each point to point of the chain may be counted as the flow of value-added activities.

Morash (2001) pinpoints that not only the matching value consistency between supply chain

strategies and capabilities should be prevailed, but also the harmonized performance that

Foster member firms' success.