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retail logistics

Retail Logistics

Freight shipping for retail stores is more complex than it would seem. Learn more about retail logistics and how FreightCenter can help retailers optimize their operations.

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Retail Logistics

Do you ever wonder how retail stores, both online and brick-and-mortar places, get their products on the shelves and in your hands so quickly? Maybe you haven’t, and that’s not surprising. With how fast delivery times are these days, it’s as if products appear to consumers like magic.

But there’s nothing magical about modern retail; this is the power of retail logistics, moving merchandise from a source to the end consumer. Retailers work with suppliers and distributors to ship products to their customers quickly and efficiently, ensuring mistakes and issues are smoothed before they affect sales.

How does retail logistics work, and how can FreightCenter make this process more efficient for your business?

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We provide competitive freight shipping prices and an all-inclusive, easy-to-use shipping experience for our customers. Exceeding our customers’ expectations results in thousands of satisfied customer reviews and repeat business. We believe in the power of our customer relationships. Check out FreightCenter reviews from real customers, and learn what they have to say about their freight shipping experience!

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Awards and Endorsements
  • 2021, 2017 & 2016 Food Logistics’ Top Green Providers
  • 2021 & 2018 Supply & Demand Chain Executives’ Pros to Know: Matthew Brosious
  • 2020 & 2019 Top Food Logistics’ 3PL & Cold Storage Provider Award
  • 2020 & 2019 Business Observer’s Top 500 Companies on the Gulf Coast
  • 2020 & 2017 SmartWay® Transport Partner
  • 2020 & 2017 Food Logistics’ Champions: Rock Stars of the Supply Chain
  • 2020 Best of Palm Harbor Awards for Local Businesses
  • 2017 Green Supply Chain Award from Supply & Demand Chain Executive
  • 2017 Tampa Bay Business Journal Heroes at Work
  • 2016, 2015, & 2012 Food Logistics Top 100 Software and Technology Providers
  • 2013 Tampa Bay Business 100 by Tampa Bay Business Journal
  • 2013 Top 100 Great Supply Chain Partners by SupplyChainBrain
  • 2012 TIA Samaritan Award Honorable Mention
  • 2012, 2011 & 2010 TBBJ Fast 50 Recipient
  • 2013, 2011, & 2010 Diversity Business Top Businesses
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Why Choose FreightCenter for Retail Logistics?

Expertise in Freight Shipping:With over 25 years in the logistics industry, FreightCenter is dedicated to guiding you through the entire logistics process, from beginning to end. Our goal is to make freight shipping easy to understand and book. Don’t waste time researching and receiving quotes from individual carriers- FreightCenter’s got your back!

Competitive Rates with Tailored Solutions: We prioritize high-quality customer service without breaking your wallet. We utilize our relationships with regional and national carriers to offer you competitive, affordable rates while providing personalized solutions to your needs. Need a liftgate? We got you! Want to expedite your order? Leave it to us! We’re ready to provide tailored solutions that don’t compromise your freight shipment.

Personalized Customer Support: FreightCenter is committed to satisfying our customers. Our friendly customer support team is here to help you every step of the way, from initial inquiries to post-shipment concerns. We handle all aspects of logistics, including tracking, paperwork, and communication with carriers, so you can focus on your business while we manage your shipment. Choose us for our reliable service and affordable quotes!

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How Does Retail Logistics Work?

The goal of retail operations, whether online or at a physical store, is to keep products available for customers no matter when or where the customer is purchasing from. To make that happen, retailers rely on smooth operations to keep inventories fully stocked and product deliveries timely, to enhance customer satisfaction.

There are two parts to retail logistics: inbound and outbound logistics. Inbound logistics is the process of retailers sourcing materials or finished goods from a supplier or manufacturer. They then move them to an internal destination, such as a warehouse, a fulfillment center, or directly to the store.

Outbound logistics picks up where inbound logistics left off. Products are moved from the internal destination to the end consumer, the customer. This process includes physically purchasing items at the store or receiving their online order at their chosen location, whether that’s their front door, a pickup location (like Amazon Lockers), or at their business.

Retail Logistics freight pallet boxes in front of grocery store shelves
 

Retail logistics, at the outset, looks similar to any other type of shipping:

  • Suppliers and manufacturers develop a product.
  • Retailers order an estimated amount based on data analytics and key performance indicators (KPIs) between them and the supplier or manufacturer.
  • Suppliers and manufacturers ship their products to a retailer via truck, air, rail, container ship, or a combination of these transportation methods.
  • The products arrive at an internal warehouse, fulfillment center, distribution center, or directly on the store shelves.
  • If the products are not going directly on the shelves, they are either categorized and stored in an internal storage area or warehouse.
  • A customer either purchases a product from a physical store shelf or orders it online.
  • If ordering online, the product is picked, packed by the warehouse (or sent to a fulfillment center for packing), labeled for tracking purposes, and shipped out via a transportation service.
  • The product arrives at the customer’s selected destination.
  • The retailer reviews post-shipment data to determine if all metrics were met and whether to work with a manufacturer or supplier again for future products.

 

Challenges of Shipping Retail

Retail logistics is a deceptive process. Retail shipping involves many moving parts, with each step in the process having a dedicated team strategizing how to get the product through their section efficiently without compromising its quality. There are also external and internal factors to consider, with challenges that impede progress along the way.

Here are just a few of the many issues that come with retail logistics, along with solutions logistics providers utilize:

Inventory Management and Visibility: Warehouses and fulfillment centers are high-traffic locations dealing with high volumes, meaning products can get lost in the shuffle. Inventory visibility is a real issue for retailers, as it can be difficult to locate and pick out products from the vast warehouse shelves without proper organization and natural inventory flow. This is why warehouses use Warehouse Management Systems (WMS) to track and find inventory when needed for order fulfillment.

Technology: While the logistics industry constantly evolves to improve efficiency, implementation can take time for logistics providers and retailers to adapt to their traditional methods. For example, warehouses implement automation to store and pick inventory, but workers may worry about the system’s accuracy and handling. Proper training and utilization are crucial to integrating new technology while keeping track of its usefulness for future analysis.

Supply Chain Disruptions: Many obstacles can interfere with retail shipping operations. These can be external barriers, such as severe weather, equipment malfunctions, and traffic slowdowns; or internal obstacles, such as improper organization or unexpected changes in the customer’s order. Logistics providers and retailers must plan their strategies thoroughly and have backup plans if something goes wrong with their current approach.

Retail Logistics warehouse shelves with palleted crates
 

Steep Costs: Logistics is an expensive venture. While these costs can be attributed to internal operational expenses, there’s also the fact that retailing is a competitive industry, with rivals often lowering their prices via sales and discounts to draw in more customers. However, these discounts can sacrifice order efficiency since the low cost of a product won’t afford the high operational costs. If a sale is necessary, retailers must plan their expenses accordingly so they aren’t blind-sighted by the disparity between operational costs and revenue from sales.

Labor Shortages: The logistics industry, and retail by extension, has struggled to attract and retain new talent. This is not just due to younger prospective workers being put off by the industry’s reputation for high training requirements, physically demanding work and low pay at certain logistics companies. It is also because the older generation is retiring, leaving a high bar for new workers to meet. Proper employee training and regular follow-ups are essential for retaining new workers and retraining existing ones to assess their current capabilities.

Consumer Expectations: Thanks to Amazon’s fast shipping practices, customers have become accustomed to quick deliveries, but now other retailers must follow suit to keep their customer base intact. Retailers must adjust their strategies to comfortably meet these demands, using methods like automation in certain areas, establishing pop-up warehousing and distribution centers, and outsourcing parts of the fulfillment process to third-party providers.

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FreightCenter is Here To Help You Ship Retail

FreightCenter delivers freight safely and punctually. With over 25 years in the business, we offer discounted rates from over 50 carriers nationwide. We provide tailored shipping solutions, expedited shipping, white glove services, and specialized freight shipping. Best of all, repeat customers can earn points for special rewards with every shipment!

Ready to ship something now? Our agents are prepared to help you get started on shipping right. Get a free freight quote using our online quote tool, or call (800) 716-7608.

Frequently Asked Questions about Retail Logistics

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Q. What is retail logistics?

A.

Retail logistics is the process of moving products from one location (the source) to another (the end consumer). Retailers need to have smooth logistical operations due to customer expectations; they expect products to be shipped on time, without sacrificing quality.

Q. What are outbound and inbound logistics?

A.

Inbound logistics refers to the first half of retail logistics: getting the product from the manufacturer or supplier to a retailer’s internal warehouse, fulfillment center, or storage facility. Outbound logistics is the second half, where the product leaves the internal destination and goes to an end consumer via a brick-and-mortar store or an online retailer.

Q. What are some challenges of retail logistics operations?

A.

Some difficulties in conducting efficient, smooth retail operations include high costs, supply chain disruptions, adapting to modern logistics technology, labor shortages, inventory management issues, and troubles meeting customer expectations. These issues can be dealt with by properly planning and executing effective strategies that account for a retailer’s business goals, KPIs, and customer trends and expectations.

Three Advantages of Using FreightCenter for Retail Logistics

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25+ Years of Service

We have over 25 years of experience, as evidenced by our large network of professional carriers. Our knowledgeable team of shipping experts is ready to help you optimize your shipping experience.

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Customizable Shipping Options

Need a liftgate? No problem! Need to ship your products quickly? We got you covered! Our FreightCenter agents can offer tailored solutions for your specific shipping needs while offering affordable rates you can’t find anywhere else.

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Friendly Customer Support

Our customer support team has the answers to many of your shipping questions and concerns. We’re here to help you through every step of the shipping process, from initial inquiries to post-shipment issues.

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