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Hey All
During a discussion with some of ex colleagues from retail sector, regarding the failure of both giants and not so big companies in retail sector.
Would not like to name any group here, but there are few prominent names and the main cause of such failure is mis handling of logistics function..
Sometimes the goods in store may not be available on time...
sometimes the order hasn't been placed in a proper manner, due to the tussle between logistics department and sales/service department..
Mentioning just few of them here...as my query is..
Is it really the case?? Logistics not being handled in a right manner can really be a major cause of their failure...
would invite people from retail sector to contribute their opinions with us for better understanding.
regards
Archna

Archna Mam,

I m in procurement since many years so I will share my thoughts accordingly, and expecting to read Seniors response as well.

Is it really the case?? Logistics not being handled in a right manner can really be a major cause of their failure.

Yes, it will be consider as a major failure. As logistic Dept play an important role in aspect of procurement and share equal responsibilities. As the performance of the company depends on Delivery to the customer/Cleint.

• Logistic Dept needs to take up the responsibility and ensure that materials deliver On-Time once its procure by Buyer.

• It is their responsibility to pack, unpack, load, unload and avoid any Discrepancy, Overage, Shortage and Damages of materials.

• On-Time deliver is the one of the Factor of the successful company, from which the performance and percentage of high rank increased. The operation is also depend on Logistic Dept.

Suggestions

• Sales Dept needs to be crystal clear with Logistic dept before hand, before procuring or Sales any type of equipment or Materials.

• Logistic Dept should follow Inco Terms further to avoid any problem, during Custom Clearance.

• Logistic Dept should communicate with Buyer/Salesman regarding freight system and conclude with either materials needs Air Freight, Sea or Road ways.

Please correct me, if my response not fit with your query.

Thanks,

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