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About Supply Chain Management

About Supply Chain Management

Solutions from challenges and problems experienced by retail industries

An overview of the ideal supply chain is to synchronize activities along the supply chain, from the point of sale of backward to the provision of raw materials. We can take an example of the retail industry where the supply chain plays an important role, such as the distribution center. 

In this place, every package of goods from the factory must be opened and the contents checked manually, both the condition and the amount, and then specified this item will be sent to shop A, store B, etc. 

This process will also be more complicated when a package consists of several types of goods. When the goods are delivered to the destination, arise again one new problem, how do we track the existence of the goods, whether it has reached the destination or even stray to another place?

Retail is the final stage of a distribution, which is the physical transfer of products from producers to consumer's hands. Apart from being a distribution function, retailers form communication between customers and companies with distributors. 

The retail business consists of several activities that support each other and affect the trading activity between the merchant and the consumer. So the retail business cannot consist of one activity alone because the retail business engages in the sale of goods and services to consumers for their needs, so it can be said retail is also a business that interacts directly with consumers. 

Retail differs from distributors, who are intermediaries in the process of distributing products and services because they do not sell products and services to end consumers but rather to businesses such as factories and retailers. Therefore in distribution channels, retailing plays an important role as a mediator between producers, agents, and other suppliers with the end consumers.

In stores, outlets, supermarkets, hypermarkets or other places where retail companies interact with their customers, problems, and challenges are faced not least. Often, retailers don't always know what assets they have or where they are. As compensation, they always keep the goods.

This kind of solution obviously requires less cost and does not entirely solve the problem. Not to mention, problems related to the incompatibility between the number of goods in the inventory system with the result of physical checking during the process of stock count result for example, both the result of incorrect inputs and the result of the goods shoplifting.

It can also be a problem that comes in terms of consumers, maybe some people have experienced when it is up to the supermarket using goods that we are looking for there is no at the rack that should be, and when asking the officer they answered do not know. 

Or when we have got the item we are looking for, we have to face a very long queue at the checkout, we find an item that has crossed the expiration limit.

The situation faced by such a retail industry may be only a fraction of the examples of problems and challenges faced by the retail industry today. In addition to facing inventory chaos, retailers are also faced with changing consumer characteristics, so in addition to price accuracy, the most important measure in consumer satisfaction is the efficient checkout system and the availability of goods. 

In addition, consumers are increasingly smarter, they are less likely to be loyal to a particular retail entity and are very sensitive to price, time, value, and information. Although most retail industries know about this issue and are trying to deal with it, consumers are always demanding more.

Such problems may be solved by several kinds of ways, first, we must cultivate a relationship marketing that is the customer approach of marketing to customers that increase the company's long-term growth and maximum satisfaction of customers, a good customer is an asset where handled and well-served will provide income and long-term growth for a business entity.

Maybe we can take the example of  HERO department, where the company prioritizes good service, by inviting customers to become a membership of HERO, so that customers will get a discount if it has become a member of HERO. 

Another example of problem-solving where consumers are annoyed when they have to queue in the cashier when there are not many products that he bought, department of HERO as I experienced they have a kassa where only max 6 items can be done payment transactions on the kassa. This way can facilitate the consumers who do not buy too many goods do not need to queue in the Kassa too long.

Another example is in the SOGO Departement Store, they argue about the customer service is a tang activity is done by retail related to consumers who buy the services or goods they sell. 

The Customer service is indispensable to foster long-term relationships by providing additional services that differentiate between company products and competitor products. With increasing retail companies then it is not wrong if customer service is needed to retain customers.

Or as has been applied by companies around the world namely Loyalty Programs is a promotional program designed to build long-term mutually beneficial relationships between companies and customers. The key to create the constant purchase of a particular product or service.

There are also other ways for example by providing a website specifically for customers who want to give advice and criticism, wherein the website customers can also see the latest products from the company.

Some of the above treatment is done with the expectation that there will be a good relationship between the customers, the better emotional bonding will be and this will help to create an increasingly harmonious bond with the customer.


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