{"id":13745,"date":"2023-06-17T19:33:03","date_gmt":"2023-06-17T19:33:03","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/ecommerce-logistics\/retail-logistics\/"},"modified":"2026-04-01T18:25:22","modified_gmt":"2026-04-01T18:25:22","slug":"retail-logistics","status":"publish","type":"page","link":"https:\/\/www.shipbob.com\/uk\/ecommerce-logistics\/retail-logistics\/","title":{"rendered":"Retail Logistics"},"content":{"rendered":"\n

Retail Logistics Guide<\/h1>\n

Having furniture delivered to your home. Curbside pickup. Ordering clothes online. These are all forms of retail logistics.<\/p>\n\n\n\n

From managing inventory flow to ensuring that customers receive shipments on time, retail logistics streamlines the different stages of your ecommerce supply chain<\/a> to keep your business running smoothly.<\/p>\n\n\n\n

As ecommerce sales continue to grow throughout 2023, it\u2019s time for online retailer to rethink their retail logistics strategy<\/a> to meet customer demands, lower shipping costs, offer faster shipping options, and improve the overall customer experience. <\/p>\n\n\n\n

In this article, you will learn the ins and outs of retail logistics and tips on how to improve your logistics management process.<\/p>\n\n\n\n

So, what do you want to learn?<\/h4>\n\n\n\n

What are retail logistics?<\/a>
COVID\u2019s impact on retail logistics<\/a>
What are the functions of retail logistics?<\/a>
3 tips for improving your retail logistics management<\/a>
Unlock growth by outsourcing to ShipBob<\/a>
Retail logistics FAQs<\/a><\/p>\n<\/div>

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What are retail logistics?<\/h2>\n\n\n\n

Retail logistics involve all the inbound and outbound processes<\/a> that result in the flow of finished goods<\/a> from a business to the end user. The optimisation of a solid retail logistics strategy is key to operating a sustainable direct-to-consumer (DTC)<\/a> retail business.<\/p>\n\n\n\n

Stages of the retail logistics process include warehouse receiving<\/a>, inventory management, fulfilment, and shipping. Every stage of the logistics process must be optimised in order to meet customer expectations around fast, affordable delivery.<\/p>\n\n\n\n

This means a retail logistics operation<\/a> often requires both labour (both warehouse workers and upper-level management roles, such as a logistics director<\/a>) and supply chain technology<\/a> \u2014 which can increase logistics costs<\/a> significantly. In many cases, DTC brands will outsource retail logistics to a third-party to save on time and costs.<\/p>\n\n\n\n

COVID\u2019s impact on retail logistics<\/h2>\n\n\n\n

The way retailers handle logistics has changed dramatically as a result of the pandemic.<\/p>\n\n\n\n

Business owners now face challenges like supply and demand disruptions, inventory delays, global lockdowns, changing trade policies, and evolving consumer shopping behaviors. The need to build flexibility into your supply chain is more important than ever. <\/p>\n\n\n\n

In 2020, global retail sales exceeded $23 trillion<\/a>, and experts predict ecommerce demand to continue expanding. One of the biggest challenges for growing ecommerce businesses today is managing increased order volume.<\/p>\n\n\n\n

Partnering with the right 3PL takes the challenges that come with managing retail logistics off your plate and puts them into the hands of experts. <\/p>\n\n\n\n

Investing in retail logistics expertise can help build supply chain resilience<\/a> by delegating logistics, so you can focus more on increasing sales, product development, market research, and customer service initiatives. <\/p>\n\n\n\n

What are the functions of retail logistics?<\/h2>\n\n\n\n

On the surface, fulfilling orders may seem straightforward. You pick items, package them up, and ship orders to their destination. Easy, right?<\/p>\n\n\n\n

The reality is that there is so much more involved in achieving an optimised retail supply chain<\/a>.<\/p>\n\n\n\n

As online shoppers expect more \u2013 free returns, free and fast shipping, even share-worthy unboxing moments \u2013 retail logistics has turned to a technology-enabled approach that is focused on speed, location, and automation. <\/p>\n\n\n\n

Procuring inventory<\/h3>\n\n\n\n

Procurement<\/a> refers to sourcing merchandise on time to meet demand, and it affects the ways your online retail business activities (like sales, inventory management, and distribution) can be performed. <\/p>\n\n\n\n

Having insight into what\u2019s going on during the procurement<\/a> process can help you find ways to build a more agile supply chain<\/a>.<\/p>\n\n\n\n

For instance, instead of viewing procurement as a separate part of your supply chain logistics, think of it as the first (and the most critical) stage of logistics management.<\/p>\n\n\n\n

Inefficient procurement that is not aligned with your retail logistics strategy can lead to reduce efficiency, delays, and less inventory visibility<\/a>.<\/p>\n\n\n\n

For example, you may have trouble procuring inventory fast enough to meet demand and fulfil orders as soon as they come in. This can cause stockouts<\/a> and backorders<\/a>, which can lead to lost sales and lower customer satisfaction.<\/p>\n\n\n\n

Less visibility over the procurement phase can also result in missed opportunities to optimise.<\/p>\n\n\n\n

Receiving & processing inventory<\/h3>\n\n\n\n

To fulfil orders, first your products must be received and processed. This is the unloading and official \u201cchecking in\u201d of incoming ecommerce inventory<\/a>, followed by its proper documentation and storage. <\/p>\n\n\n\n

Inventory receiving and processing is so important. Not only does it enable efficiency and speed up the fulfilment process, but it also ensures that what is being received matches what was ordered.<\/p>\n\n\n\n

Lacking clear procedures for things like unloading<\/a>, receiving, or assigning SKUs<\/a> makes it all too easy to wind up with loss (which can cause inventory shrinkage<\/a>), impacting both your customers and your bottom line.<\/p>\n\n\n\n

Distributing inventory<\/h3>\n\n\n\n

\u201cDistributed inventory<\/a>\u201d is an inventory allocation<\/a> method that disperses inventory across multiple warehouses<\/a> or fulfilment centres instead of just one. The idea behind this system is simple: it puts your products closer to your customers, making it one of the most effective ways to shorten delivery times while reducing shipping costs<\/a>. <\/p>\n\n\n\n

Because shipping zones<\/a> affect the price of fulfilling retail orders, the less distance a package must travel, the lower the cost for customers (think about an Uber or Lyft ride, where the farther the destination, the more expensive it will be).<\/p>\n\n\n\n

In an economy that relies on fast fulfilment<\/a>, distributing inventory among numerous retail warehouses<\/a> can take your business to the next level by unlocking the ability to offer affordable, 2-day shipping<\/a> \u2014 a perk many consumers expect thanks to retailers like Amazon.<\/p>\n\n\n\n

Since many fast-growing brands don\u2019t have the time or resources to manage multiple warehouses, they outsource fulfilment<\/a> to a 3PL like ShipBob, which operates a large network of fulfilment centre locations.<\/p>\n\n\n\n

Order fulfilment<\/h3>\n\n\n\n

Don\u2019t underestimate customer expectations on fast, affordable delivery. Having a cost-effective and efficient order fulfilment strategy in place is crucial. <\/p>\n\n\n\n

Once your customer clicks \u201cSubmit Order,\u201d a number of synchronized processes take place, which ensures customer information is validated, and the right products are picked and packaged as soon as possible. It\u2019s known as the order-to-cash (O2C)<\/a> process.<\/p>\n\n\n\n

During the O2C cycle, some inventory management and accounting tasks must occur, such as locating items in the available inventory to fulfil the order and receiving customer payments.<\/p>\n\n\n\n

A healthy O2C cycle also requires an order management<\/a> system to track orders and record historical order data, which is later used to analyse O2C performance.<\/p>\n\n\n\n

If you partner with a 3PL like ShipBob, the order processing<\/a> and fulfilment process is automated. Once your online store is connected to ShipBob\u2019s fulfilment software<\/a>, orders are sent to the nearest fulfilment centre to the shipping destination. <\/p>\n\n\n\n

From there, a picker at the fulfilment centre receives a list of the items, quantities, and storage locations to identify and retrieve the items. Then, the order is securely packed and shipped through the most cost-effective route available.<\/p>\n\n\n\n

Tracking inventory & orders<\/h3>\n\n\n\n

Throughout the entire ecommerce supply chain<\/a>, it\u2019s important to have systems in place to manage inventory in real-time.<\/p>\n\n\n\n

Without real-time inventory management<\/a>, it\u2019s a challenge to maintain optimal inventory levels<\/a> and know when it\u2019s time to replenish inventory<\/a> to meet demand, without overstocking and increasing holding costs<\/a>.<\/p>\n\n\n\n

Along with inventory tracking<\/a>, you will also need to track orders. Digital order tracking<\/a> allows you to monitor orders and shipments in real time, as well as provide tracking information for your customers. <\/p>\n\n\n\n

For instance, with ShipBob\u2019s technology that integrates with your ecommerce platform(s), you can:<\/p>\n\n\n\n