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and Retailing
Leigh Sparks Retailers are now the dominant partners in most supply systems and have
Professor of Retail Studies, Institute for Retail Studies, used their positions to re-engineer operations and partnerships with
Stirling Management School
suppliers and other logistic service providers. No longer are retailers the
University of Stirling, UK
Leigh.Sparks@stir.ac.uk passive recipients of manufacturer allocations, but instead are the active
channel controllers organizing supply in anticipation of, and reaction to
consumer demand. This paper reflects on the ongoing transformation of
retail supply chains and logistics. If considers this transformation through
an examination of the fashion, grocery and selected other retail supply
chains, drawing on practical illustrations. Current and future challenges
are then discussed.
supply chains. It does this through Peter Drucker's (1962) seminal 3. An enhanced role for information
considering the roots of supply article on 'the economy's dark systems to gain better control of
chain management, its effects continent'. At that time he was the supply chain
particularly on fashion and discussing distribution as one of 4. The elimination of unnecessary
grocery-based retailers, and then the key areas of business in which inventory in the supply chain
discusses current and future major efficiency gains could be 5. A focus on core capabilities and
challenges for retail supply chain achieved and costs saved. Then, increased outsourcing of noncore
management. Further information and through the next two decades, activities to specialists
on this transformation can be the supply chain was still viewed as
obtained from a series of books a series of disparate functions To achieve maximum effectiveness
written by Fernie (1990) and Fernie (Langley, 1986). The real impact of of supply chains, it became clear
and Sparks (1998, 2004, 2009). supply chain management began to that integration, that is, the linking
Further, the detailed operational be felt in the 1980s (Alfalla-Luque & together of previously separate
practices required to make retail Medina-López, 2009). As separate activities within a single system,
supply chains work, which are logistics functions such as was required. Companies therefore
often based on sophisticated warehousing, transport, and have had to review their internal
operations research techniques inventory management began to be organisation to eliminate
and models and aided by the integrated and considered as part duplication and ensure that total
explosion of data in retail supply of the supply chain rather than costs can be reduced rather than
chains in recent decades, are separate (and enabled by allow separate functions to manage
explored in Agarwal and Smith technology and information their costs in a suboptimal manner.
(2009). communications development), Similarly, supply chain integration
several key themes emerged: can be achieved by establishing
Supply Chain Management 1. A shift from a push to a pull to a ongoing relationships with trading
demand-driven supply chain partners throughout the supply
The roots of supply chain 2. Customers gaining more power chain. Increasingly such
management are often attributed to in the marketing channel approaches include consumers
Trautrims, A., Grant, D. B., Fernie, J., & He is an avid Welsh rugby supporter.
Harrison, T. (2009). Optimizing on-shelf
availability for customer service and
profit. Journal of Business Logistics, 30,
231-247.