F/T to host first logistics seminar
Ray Allegrezza -- Furniture Today, March 25, 2011
During the boom years, when business was robust and we were all metaphorically fat and happy, logistics, distribution and all the other back-room functions were often literally relegated to the back room, both physically and from a top-of-mind perspective. However, since the Great Recession of 2007 and the subsequent erosion of margins and profitability, logistics and distribution have gone from being the unsung heroes of retail to a salvation song sung by retailers at every level.
Most of the retailers and suppliers I've talked with this year say that one of the biggest challenges they face is trying to forecast production and delivery. With business remaining erratic, no one can afford to miss a sale should the consumer show up ready to buy.
But by the same token, nobody is anxious to take on the responsibility for holding inventory.
Complicating things further, most of us would agree, is the fact that today's consumer has come to expect instant or nearly instant gratification whenever she is ready to buy. And since she doesn't shop for furniture with anything close to the frequency she does for apparel, groceries and other products, out of stock can mean out of business for home furnishings stores.
But wait ... there's more. Even being in-stock is no guarantee in today's market that you've captured the sale. Statistics indicate that upwards of 40% of retail purchases are influenced by the Web in some manner or form, but when most transactions still take place at the store level, the challenge - and need - for retailers to have top-notch logistics and distribution capabilities should be obvious.
Having the right product and the right price has been the backbone of retail. And during happier days, we could simply bring in more inventory, hire more workers and schedule more deliveries.
Not today. Rising costs and diminishing customer loyalty, combined with shrinking business, demands a leaner and more efficient supply chain. But as more retailers continue to try and reduce costs by outsourcing inventory, warehousing and delivery, the demand for a cohesive supply chain intensifies, especially since retailers, suppliers and carriers may each have different systems in place.
Clearly, there are lots of questions, but where can you go for answers? On June 15, Furniture/Today is hosting our first annual Logistics Seminar with the goal of bringing you the answers you need.
Stay tuned.
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