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Файл:TOPICAL ISSUES OF LOGISTICS. Учебное пособие для студентов-магистров направления «Экономика»
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distribution. With pre-distribution cross-docking, goods are
unloaded, sorted, and repackaged based on predetermined
distribution instructions. With the post-distribution process,
goods are stored in the cross-docking facility until the next
leg of the journey is clear, i.e., the demand is mapped and
customers are identified. This type of service would result in
inventory staying at the cross-docking warehouse for a
slightly longer period of time.
Methods of cross-docking. Depending on the type of business,
the products you sell, and your customers’ needs, here is a
break down of the three more common methods of crossdocking.
1. Continuous cross-docking. With continuous cross-docking,
there is a non-stop and direct flow of inventory through a
cross-docking facility from inbound to outbound
shipments. Continuous cross-docking results in short waiting
periods between unloading and loading of shipments in case
of events like trucks arriving at different times at the facility.
2. Consolidation arrangements Consolidation arrangement
involves the merging of many small shipments into one
larger load before being shipped out. This is beneficial
since it is not always profitable to ship out each small parcel
individually from the cross-docking facility. With a
consolidation arrangement, the goods do need to be
temporarily stored at the warehouse until they form full
truckload shipments (most likely in a staging area and not
with other inventory). But, the benefit lies in the fact that it
helps reduce shipping costs.
3. De-consolidation The de-consolidation approach to cross-
docking is the opposite of the consolidation arrangement
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method. With de-consolidation, the large load is broken
down into smaller batches to make it easier and quicker to
transport to customers. This is method is typically used
in direct-to-consumer fulfillment.
- Mom And Pop Stores Mom and Pop name is popularly
used for private and family-owned businesses. These stores
are run by a family or a small number of employees. These
businesses generate small revenue. The term “mom and pop“
itself referred to investors in the market with little
experience. In the past, mom and pop term was especially
used for family-owned businesses such as bookstores,
restaurants, insurance agencies, and automotive repair shops,
etc. Mom and Pop businesses usually sell local products and
have single location stores. These businesses often get tough
competition from well-established businesses. Mom-andPop businesses have several disadvantages to big businesses
such as franchise business (Franchise businesses have stores
all over the world with the same concept, company’s name,
and logo), e-commerce sites, larger advertising budgets, and
huge capital for investment. Because of these advantages,
bigger businesses have the edge over mom-and-pop
businesses. Therefore, Mom-and-pop businesses are
frequently shutting down their stores. But in present times,
mom-and-pop businesses have higher signs of hopes for
success as more and more people are demanding
personalized products and services. In addition to this, they
want to purchase local products and services so that they can
do their part to help their community and help in promoting
local economic growth.Mom and Pop shops’ owners work
on the concept, which is both beneficial for the local
community and environment. Therefore, they provide highly
personalized and interactive services which are difficult for
big businesses to provide. Therefore, these businesses easily
win the loyalty of people of the local community. In addition
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to this, these businesses are also making the use of the
internet to reach a large audience. For example, people want
to try local products of the city they travel in. Businesses
which have their websites can attract tourists. Their
Advantages :Mom-and-Pop stores provide personalized and
cozy shopping experience. You can ask for help easily as
people who run these stores are happy to help. You can order
Parts or personalized products as per your need, and no-one
will complain you about having to do so. You will feel
comfortable shopping in a mom-and-pop store as the owner
will know you soon after you enter the store. Customers get
better customer service in small stores. You can easily find
them in your neighborhood. Disadvantages: Few options to
choose from. Things are a little expensive in Mom-and-Pop
stores as they don’t buy materials in bulk and also don’t
produce in bulk, which can be a turn off for your customers.
Mom and Pop store are operated by a family or a small
number of employees. Hence, they can’t provide services for
24 hours. The image of the owner in society impacts the
business of the store. People are less likely to buy from a
store whose owner has a bad history. Such stores are
specialized in selling limited products. Therefore, people
can’t buy everything they need under one roof as they get in
supermarkets or departmental stores and they need to go
around the town to buy different things from different
places. Examples - Traditional Mom-and-Pop stores are a
renowned name for American entrepreneurship. However, in
present times, the number of Mom-and-Pop stores has been
decreasing since 1978.
- Retail Stores
When the marketing era began, companies started realizing
that they could attract customers with differentiated offers.
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Based on consumer behavior and manufacturers abilities,
there are various types of retail stores which exist in the
market. Each of these retail outlets are different based on
the products they offer and the way they offer it. What are
these retail stores and what are they called? Let us have a
look.
There are 10 Types of Retail Stores:
1) Speciality Store. A speciality store is one which
focuses on one or two specific categories. They have a very
narrow product line. However, the advantage of a speciality
store is that you will find many things in that store related to
that speciality which you might not find on the open
market. There are two examples of retail stores which can be
considered as Specialty stores. The first example includes
stores which are specialized in bodybuilding or sports. Such
stores will have all different kind of fitness equipment’s and
you can find equipment’s which you won’t find in the
common market. Thus, if you had to buy fitness equipment,
you would probably visit the speciality store. Another
example includes the technical stores which are specialized.
If you had to buy a water purifier, it is highly likely you will
go to an “expert” store which only sells water purifier and all
different kinds of spare parts related to water purifiers. Thus,
because of their nature of being specialized, these retail
stores are also considered as speciality stores.
2) Department store. Department stores are generally
located within malls and they may not have their own
independent stores. Department stores have a lot of products
under their roof. They will sell clothing, men’s and women’s
accessories, children’s toys, home furnishings and many
different things. They generally have separate sections for
separate categories. However, the number of categories are
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not exhaustive. These stores might not deal in as many
categories as Supermarkets or hypermarkets. They will not
sell FMCG items like Soap or shampoo. Even if they sell
that, they will limit the categories by some other means. The
footfall in department type of retail stores is of people who
want some specific things. These products can be “mid to
high level” type of products like watches or clothing.
Typical example of such stores includes Macy’s, Shoppers
Stop, Pantaloons, Kohl’s etc.
3) Super Markets. They are known to be vast
marketplaces with a wide variety of categories available.
Most of these categories deal in the residential market
segment by dealing in a lot of food varieties, necessary and
useful products, groceries, bakery products, laundry, etc.
More than consumer durables, these types of supermarkets
focus on the FMCG products. Many customers in the
supermarket are looking to refill their home inventory and
the best place to do that is the supermarket because you can
fill up with a lot of stuff in very less time. Product
assortment is a speciality of supermarkets because the
products need to be displayed in such a manner that the
customer gets attracted to them and they sell faster.
Normally, Supermarkets are also preferred because they
have a lot of variants of the same product. You can find a lot
of different varieties of soaps and shampoos at your local
supermarket which you won’t find in your local convenience
store. As consumers grow, supermarkets are becoming
smarter and smarter and bringing various price incentives to
shop with them. Some examples of Supermarkets include
Whole foods, Costco, Big Bazaar etc.
4) Convenience stores. A store in your locality which
provides the most basic material to you in a timely manner
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and which is available to you for all basic needs is a
convenience store. These are small stores which do not have
too many categories or too much depth in their product line.
They will have 2-3 types of each product and the volume too
will be lesser. Nonetheless, they are almost anywhere and In
any country that you go too. Typically, most convenience
stores provide low-level items which are not even midrange. The advantage of a convenience store is, well, its
convenience. It is nearby. So, if you have forgotten to bring
milk, you need not enter the mall again, check in your bags,
go to the milk section, checkout and drive back home. All
you have to do is visit the store, buy milk and come back.
The shop is a small shop giving super-fast service with a
focused approach.
5) Drug stores. Drug stores are the ones which sell
medicines and are specialized in it. They can be a form of
specialized store itself but let’s face it – drug stores are now
wider and longer than any specialized store because of the
population and the number of medicines we need in day to
day life. But drugstores now sell many other things besides
pharmaceuticals. They have become another form of
specialized retail stores where many things can be bought
like Health and beauty products, basic snacks, protein
supplements, small medical equipment as well as other
personal care and healthcare products.
6) Discount Stores. Ever heard of the words “Every day
low prices”. If you have not, that is the tagline
which Walmart used to great effect to sell off its wares and
to become one of the leading retail stores in the market.
Walmart can be categorized in two different kind of retail
stores – The Supermarkets or Discount stores. However, due
to its pattern of discounting and attracting customers on the
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basis of discounts, it is more apt to place Walmart as
a Discount store. Discount stores sell all products at a good
discount which attracts the customers. They do this by
buying the products in huge volumes from the company. On
the front end, they also establish a huge number of
supermarkets and hypermarkets so that they can liquidate
these products to the customers by passing on the margins.
The Discount type of retail stores are categorized into three
main features: - Low selling price of products – possibly
lowest in the market; - Low margins for the product,
therefore, low bottom line; - A very high volume of sales
possibly by selling certain products even in negative margins
to attract the customers (something which E-commerce
companies are doing nowadays).
7) Extreme discount stores. The best examples of
Extreme discount stores are Aldi and Lidl which are one of
the top retail stores in the UK and are also one of
the competitors of Tesco. These stores have many wares
which are very cheap in price and are sold at dirt cheap rate.
The supply in these stores may or may not be regular and
they work more on the “deal” basis. The second feature
which separates these extreme discount stores from discount
retail stores is that most of the brands they carry are private
label brands and are from small manufacturers. Aldi and Lidl
both carry more of private label brands and their inventory is
more than 60% made of private label brands. Naturally, this
makes a huge difference in pricing because the purchase
price itself is lower and hence the sale price will be lower
too. Being of the extreme discount variety does not mean
that the quality of the products is very low. In fact, many of
the products generate good revenue from such stores and
might become brands by themselves later on. Such stores
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prefer buying from local suppliers to cut transportation cost
and have strict cost control measures in place.
8) Off-price / Used goods store. Ebay started in this
business very well and sold many products at a good
discount because they were products which had some small
defect, or they were leftover goods from the manufacturers
who did not find the goods up to the mark. Another market
which is booming right now is the used goods store. The
market of Used goods or resale Is so big that even brands
like Audi or others are now offering support and ratings for
the sale of used goods so that consumers are happy even
with the used products. Off-price stores are stores which sell
items that have a minor defect during the time of
manufacturing or which have a small defect due to handling.
The sale of off-price goods is on the rise because of the
establishment of E-commerce portals
like Amazon and Alibaba. When you sell on these portals,
there is a small percentage of products which gets damaged
during transit. Such products are directly sold to the off-price
type of retail stores which sell it to the end consumers. The
advantage of these stores is the very low price you get. The
disadvantage is that the stock does not last long and you
have to compromise for the goods which might have minor
defects.
9) Super Stores or Hyper Markets. Superstores are retail
stores which are huge in size and have many many different
categories under their belt. Think of a Superstore having
everything under its roof – all the products that you can buy
as a “residential consumer”. These retail stores are not found
in malls. Rather they are malls by themselves. Tesco, Asda,
Sainsbury, Walmart, Costco all are players which have the
presence in the hypermarket segment. A superstore is also a
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type of discount store because without discount the
customers will not be attracted. But generally, a superstore
or a hypermarket does a good job of balancing the cheap the
good, the quality as well as the premium. Basically, you will
find low level, mid-level and even high-level quality of
products in a hypermarket. Hence it is known as a “complete
market”. This category is being affected most heavily since
the advent of E-commerce because there is huge cost
associated with running a superstore or a hypermarket.
10) E-commerce Stores. Without a doubt, E-commerce is
the future of retail. Even now, Amazon has a huge market
share of retail and has a top positioning in the customer’s
mind. If you don’t get a product anywhere offline, you will
definitely find it online because the sellers from all across
the country sell products online and there is even an option
to import the product from another country. This reduces the
cost of distribution of product and increases the total number
of products available to the end customers. Not only
Amazon or Alibaba, there are many small E-commerce retail
stores popping up as well. Every specialized retailer or even
convenience goods salesperson is launching his or her
website and directly selling products from their website
which is nothing but a type of E-tailing. In the future, we can
see almost all brands having their own online retail stores
and cutting the middlemen by directly selling to end
customers. If you can buy a Zara outfit online, why will you
go to a Zara store or to even other fashion retailers? You will
directly buy from Zara. The above were the 10 type of retail
stores and retail outlets in the market. The future of retail is
the combination of offline and online. Walmart also has its
own E-commerce store now and does a huge turnover
through its online store. The advantage of Walmart over
Amazon is its offline presence is huge as well. So, if a
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customer is unhappy with a product, he can go offline and
return it to his local Walmart as well. This confidence helps
the customer in making a decision. Retail is and will always
be a competitive segment. There is no denying the fact that
retail is one of the segments where the cost is high, and the
margins are low. However, retail covers up that disadvantage
with the huge turnover and volume you can do from a retail
outlet.
- Consumer cooperatives are organized by consumers
that want to achieve better prices or quality in the goods or
services they purchase. In contrast to traditional retail stores
or service providers, a consumer cooperative exists to
deliver goods or services rather than to maximize profit from
selling those goods or services. Nationally, the most widely
used co-op form is the credit union, with some 90 million
members. Credit union assets have grown a hundred-fold in
three decades. Credit unions are essentially cooperatives of
people that use banking services.
- Collective Buying Program accumulates orders from
several employees and user groups within the same
organization over a defined time period – the more orders for
like items that are collected during the program period, the
lower the unit price all buyers in the group pay for their
portion of the order. There is a typically a pre-defined opt in
and opt out window of opportunity for buyers to jump on the
bandwagon. At the end of the program period, each buyer’s
individual order is processed at lower unit prices based on
overall company wide order volume. Virtually any item is
eligible to be set up for the Collective Buying Program – just
another innovative way which helps everyone in your
organization pay less for critical marketing collateral.
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