Logistics and Retail Management: Emerging Issues and New Challenges in the Retail Supply Chain, 3rd Edition

305 Pages·2009·1.84 MB·English

by  John Fernie

logistics ret3 pbk aw:Layout 1 26/5/09 11:20 Page 1
3RD
EDITION
“Extremely valuable material for any student of retail logistics… well-written 3RD EDITION
and relevant… a worthwhile acquisition.”
International Journal of Logistics L LOGISTICS
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The supply of products into retail outlets was originally controlled by manufacturers,
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but now retailers recognize the need to have more involvement in supply chains. As
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they take more control, significant efforts have been made to reorganize and
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reprioritize activities in transporting products from production to consumption. & RETAIL
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Emphasis is now on minimizing time to market, maximizing on-shelf availability,
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continuously replenishing stock and utilizing technology to transform the retail C
supply chain.
S
MANAGEMENT
Notwithstanding the major strides made, numerous challenges remain, and new &
issues are constantly emerging. This book brings together well-known academics

who share their research, ideas and experience of current wisdom on supply-chain R
management in retail to include the very latest thinking and research essential to
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retail logistics. Now in its third edition, it includes contributions on:
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Emerging issues and new challenges
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(cid:129) relationships in the supply chain;
I in the retail supply chain
(cid:129) logistics in the fashion industry;
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(cid:129) temperature-controlled supply chains;

(cid:129) on-shelf availability; M
(cid:129) e-tail logistics;
A
(cid:129) RFID;
(cid:129) green logistics. N
A
Logistics and Retail Managementis essential reading for retail and logistics
managers, academics, students and consultants. G
E
John Fernieis Professor of Retail Marketing at Heriot-Watt University. He is a
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Fellow of the Institute of Logistics and Transport and a member of the Chartered
Institute of Marketing. Leigh Sparksis Professor of Retail Studies at the Institute for
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Retail Studies, University of Stirling. He is a member of the Chartered Institute of
Logistics and Transport and Chair of the Academy of Marketing Research N
Committee.
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£35.00 &
ISIBSNB:N 997788--00--7744949U-454-S50 74$-04775-.400 LEIGH SJOHN FEEDITED
PARN BY
RKIE
Kogan Page Kogan Page US S
120 Pentonville Road 525 South 4th Street, #241
EDITED BY
London N1 9JN Philadelphia PA 19147
9 780749 454074
United Kingdom USA
JOHN FERNIE & LEIGH SPARKS
www.koganpage.com Transport and logistics
i
LOGISTICS
& RETAIL
MANAGEMENT
Emerging issues and new challenges in
the retail supply chain
3RD EDITION
EDITED BY
JOHN FERNIE & LEIGH SPARKS
London and Philadelphia
ii
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is
accurate at the time of going to press, and the publishers and authors cannot accept responsibility
for any errors or omissions, however caused. No responsibility for loss or damage occasioned to
any person acting, or refraining from action, as a result of the material in this publication can be
accepted by the editor, the publisher or any of the authors.
First published in Great Britain and the United States in 1999 by Kogan Page Limited
Second edition published in 2004
Third edition published in 2009
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as
permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
writing of the publishers, or in the case of reprographic reproduction in accordance with the
terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms
should be sent to the publishers at the undermentioned addresses:
120 Pentonville Road 525 South 4th Street, #241
London N1 9JN Philadelphia PA 19147
United Kingdom USA
www.koganpage.com
© John Fernie, Leigh Sparks and individual contributors, 1999, 2004, 2009
The rights of John Fernie, Leigh Sparks and the individual contributors to be identified as the
authors of this work has been asserted by them in accordance with the Copyright, Designs and
Patents Act 1988.
ISBN 978 0 7494 5407 4
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Logistics and retail management : emerging issues and new challenges in the retail supply chain
/ John Fernie and Leigh Sparks.
p. cm.
Includes index.
ISBN 978-0-7494-5407-4
1. Business logistics. 2. Retail trade--Management. I. Fernie, John, 1948- II. Sparks, Leigh.
HD38.5.L614 2009
658.5--dc22
2008049601
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in India by Replika Press Pvt Ltd
iii
Contents
Contributors vi
Preface xi
PART 1 CONCEPTS IN RETAIL LOGISTICS AND SUPPLY
CHAIN MANAGEMENT
1 Retail logistics: changes and challenges 3
John Fernie and Leigh Sparks
The logistics task 5; Retail logistics and supply chain
transformation 9; Supply chain management 11;
The grocery retail supply chain in the United Kingdom 20;
Supply chain challenges 25; Conclusions 32
2 Relationships in the supply chain 38
John Fernie
Introduction 38; Changing buyer–seller relationships 38;
Quick Response 43; Efficient Consumer Response 47;
The role of logistics service providers 55; Conclusions 58
3 The internationalization of the retail supply chain 63
John Fernie
International sourcing 64; Differences in distribution
‘culture’ in international markets 70; The internationalization
of logistics practices 74
iv ❚ Contents
PART 2 NON-FOOD (FASHION) LOGISTICS
4 Market orientation and supply chain management in the
fashion industry 83
Nobukaza J Azuma, John Fernie and Toshikazu Higashi
Introduction 83; Market orientation approach and supply
chain management – a focal point 84; Market orientation
approach and supply chain management – the reality 90;
The role of imitation and innovation in the fashion business 92;
Conclusion and the research agenda for future studies 96
5. Fashion logistics and quick response 102
Martin Christopher, Bob Lowson and Helen Peck
Managing the fashion logistics pipeline 103; The lead-time
gap 106; Quick response strategies 109; Global sourcing
and QR 112; The importance of agility 117; Conclusion 119
6 Agile merchandizing in the European textile fashion industry 121
Neil Towers and Johanna Bergvall-Forsberg
Introduction 121; Global sourcing challenges 123;
Fashion merchandizing 124; The agile supply network 127;
Agile merchandizing 129; Future developments 137
PART 3 FOOD LOGISTICS
7 Tesco’s supply chain management 143
David Smith and Leigh Sparks
Introduction 143; The changing Tesco supply chain:
establishing control and delivering efficiency 146; The current
network 156; Other initiatives: the environment 165;
Conclusions and lessons 167
8 Temperature controlled supply chains 172
David Smith and Leigh Sparks
Introduction 172; What is a temperature controlled supply
chain? 173; The importance of temperature controlled
supply chains 174; Changes in temperature controlled supply
chains 177; Issues in temperature controlled supply chains 183;
Future developments and constraints 186
Contents ❚ v
9 On-shelf availability in UK grocery retailing: a case study 189
John Fernie and David B Grant
Introduction 189; Literature background 190;
Methodology 194; Findings 197; Conclusions 201
PART 4 EMERGING ISSUES: TECHNOLOGY AND
ENVIRONMENTAL LOGISTICS
10 The development of e-tail logistics 207
John Fernie and Alan McKinnon
Introduction 207; The growth of e-commerce 208; The grocery
market 215; The logistical challenges 218; Definition of the
home delivery channel 219; Environmental impact of online
retail logistics 228; Conclusions 229
11 RFID: transforming technology? 233
Leigh Sparks
RFID: initial hype and reality 234; RFID: more measured
consideration? 247; Conclusions 248
12 The greening of retail logistics 253
Alan McKinnon and Julia Edwards
Introduction 253; Environmental effects of retail logistics 254;
Framework for analysing the environmental impact of retail
deliveries 255; Managing waste within the retail supply
chain 266; Topical issues 267; Conclusions 270
Afterword 274
John Fernie and Leigh Sparks
Index 279
vi
Contributors
Nobu Azumais Associate Professor in Marketing and Distribution Studies
at the School of Business, Aoyama Gakuin University in Tokyo. He is also
engaged in a variety of research activities at the School of Management
and Languages, Heriot-Watt University, Edinburgh, on a part-time basis.
His current research interests cover fashion, culture, and consumption,
industrial/commercial agglomeration, market orientation and supply
chain management in the fashion industry. He emphasizes the impor-
tance of the ‘soft variables’ in management studies by employing an inter-
disciplinary research approach.
Johanna Bergvall-Forsberg is Lecturer in Supply Chain Management in
the School of Materials at the University of Manchester. Since 2003 she
has been involved in research investigating strategic agile merchan-
dizing as a route to competitiveness for the European textile sector. She
has published in internationally rated journals and has also authored a
number of sector policy reports for the European Social Fund sponsored
Textiles Advanced Skills (TASk) Equal project. She is a member of the
Institute of Operations Management and has been invited to teach at
the College of International Education, Zhongyuan University of
Technology, China.
Martin Christopher is Professor of Marketing and Logistics at Cranfield
School of Management. He has published widely and his recent books
include Logistics and Supply Chain Management and Marketing Logistics.
Martin Christopher was the founding co-editor of the International
Journal of Logistics Management. He is a regular contributor to conferences
Contributors ❚ vii
and workshops around the world. At Cranfield, he chairs the Centre for
Logistics and Supply Chain Management, the largest activity of its type
in Europe. In addition to leading a number of ongoing research projects
in logistics and supply chain management, he is active as an adviser to
many organizations. Martin Christopher is an Emeritus Fellow of the
Chartered Institute of Logistics and Transport on whose Council he sits.
He is also a Fellow and Foundation Professor of the Chartered Institute of
Purchasing and Supply and a Fellow of the Chartered Institute of
Marketing. In 1988 he was awarded the Sir Robert Lawrence Gold Medal
for his contribution to logistics education, in 1997 he was given the US
Council of Logistics Management’s Foundation Award and in 2005 he
received the Distinguished Service Award from the US Council of Supply
Chain Management Professionals (This is North America’s highest
accolade for work in the area of supply chain management and was the
first time it has been given to anyone outside North America.) In 2007 he
was appointed a Foundation Professor of the UK Chartered Institute of
Purchasing and Supply.
Dr Julia Edwardsis a Research Associate at the Logistics Research Centre
in the School of Management and Languages at Heriot-Watt University,
Edinburgh. She joined Heriot-Watt in 2006, as part of the multi-university
‘Green Logistics’ project. Prior to that, she was a Senior Lecturer of
Environmental Management at the University of Wales, Newport. Dr
Edwards has been researching and teaching in the areas of transport and
environmental issues for the last 15 years. Currently, her research
interests include carbon auditing of supply chains, e-commerce and the
environment, and consumer travel and shopping behaviour.
John Fernie is Professor of Retail Marketing at Heriot-Watt University,
Edinburgh. He has written and contributed to numerous textbooks and
papers on retail management, especially in the field of retail logistics and
the internationalization of retail formats. He is editor of the International
Journal of Retail & Distribution Management, published by Emerald, and
received the prestigious award of Editor of the Year in 1997 in addition to
Leading Editor awards in 1994, 1998 and 2000. He is on the editorial
boards of the Journal of Product and Brand Management, and the
International Journal of Logistics Management, both published by Emerald.
He is a Fellow of the Institute of Logistics and Transport and an active
member of the Chartered Institute of Marketing in the United Kingdom.
He has also held office in the American Collegiate Retail Association. In
2001 he became a member of the Logistics Directors Forum, a group of
leading professionals in supply chain management and logistics in the
United Kingdom.
viii ❚ Contributors
David B Grantis Professor in Logistics and Deputy Academic Director at
the University of Hull Logistics Institute and an Adjunct Faculty member
at Mannheim Business School in Germany. Prior to joining Hull, he was
Senior Lecturer and Deputy Director of the Logistics Research Centre at
Heriot-Watt University in Edinburgh. David’s doctoral thesis investigated
customer service, satisfaction and service quality in UK food processing
logistics and received the James Cooper Memorial Cup PhD Award from
the Chartered Institute of Logistics and Transport (UK) in 2003. David has
published over 70 papers in various refereed journals, books and
conference proceedings and is on the editorial board of the International
Journal of Physical Distribution & Logistics Management, International Journal
of Business Science and Applied Management and Supply Chain Forum: An
International Journal. David is a member of the US Council of Supply Chain
Management Professionals, the UK Logistics Research Network, and the
NOFOMA Nordic logistics research group.
Tomakazu Higashiis Associate Professor of Marketing at the University of
Marketing and Distribution Sciences (UMDS), Kobe, Japan. Prior to joining
UMDS, he completed Master’s and Doctoral Courses at the Graduate
School of Commerce, Keio University, Tokyo. He specializes in general
marketing studies. His ongoing research projects tackle the issues of
strategic marketing and relationship marketing. He places a particular
focus on the salience of entrepreneurship and ‘intrepreneurship’ in
directing a firm’s customer orientation strategies.
The late Robert Lowson was the Professor of Operations and Supply Chain
Management and Director of the Strategic Operations Management Centre
(SOMC) at the Norwich Business School. Professor Lowson received his
PhD from Cardiff Business School, for work examining the flexibility and
responsiveness of retailers and manufacturers in the Fast Moving Consumer
Goods (FMCG) sector. His research interests encompassed the supply chain
and operations strategies; supply chain management; supply pipeline
linkages between retailers and their suppliers; the use of agility for respon-
siveness and flexibility (Quick Response) in the modern commercial organi-
zation; the role and agility of the Small and Medium-sized Enterprise (SME)
in modern economies; and complex adaptive systems, non-linear dynamics,
organizational ecology and their implications for organizational theory.
Alan McKinnonis Professor and Director of the Logistics Research Centre
in the School of Management and Languages at Heriot-Watt University,
Edinburgh. Alan has been researching and teaching in the field of logistics
for 30 years and has published widely on the subject. He has been an adviser
to several UK government departments and consultant to numerous public
Contributors ❚ ix
and private sector organizations on a variety of logistics and transport
issues. In 2000–2001 he was chairman of the UK government’s Retail
Logistics Task Force. He has recently been advising government
committees, trade associations and companies on the ‘decarbonization’ of
logistics operations and is involved in a large multi-university research
project on ‘green logistics’. Alan is a fellow of the Chartered Institute of
Logistics and Transport, founder member of its Logistics Research Network
and recipient of it highest distinction, the Sir Robert Lawrence Award.
DrHelen Peckis Senior Lecturer in Commercial and Supply Chain Risk at
Cranfield University. She joined Cranfield in 1983 from a major UK retail
bank, working initially with the School’s Library and Information
Services and Management Development Unit, before taking up a
research post within the Marketing and Logistics Group, where she
completed her PhD. Helen has led Cranfield University’s ground-
breaking government-funded research programme into all aspects of
supply chain related risk and resilience since its inception. She teaches
corporate and supply chain risk on graduate programmes and short
courses at Cranfield University and guest lectures at other leading univer-
sities in the United Kingdom and Europe. Her research-based teaching
brings together themes of risk, resilience and complex systems theory
with practical management disciplines such as supply chain management
and business continuity. Her work contributes directly to the devel-
opment of UK national emergency planning policy as well as
management practice. Helen’s research and consultancy interests span
mainstream commercial, defence and other public service contexts. She is
a regular speaker at academic, business and defence conferences around
the world. Her published work includes papers and journal articles, joint
editor- and authorship of several books, with contributions to many
others. She is also an award-winning writer of management case studies.
Dr David Smithwas Head of Primary Distribution at Tesco. After working
in other sectors of high street retail distribution he joined Tesco in 1984 in
the distribution division and worked in the fast moving food consumer
and temperature controlled distribution networks in both secondary and
primary distribution. In 1993 he completed an MBA at Stirling University
with a dissertation on ‘Integrated supply chain management: the case of
fresh produce in Tesco’. Since 1998 he has been an independent
consultant in retail supply chain logistics. In 1998 he was seconded to the
Department of the Environment, Transport and the Regions best-practice
programme on freight distribution and logistics, and worked with several
cross-industry working groups for road, rail and packaging. A Fellow of
the Institute of Logistics and Transport, he has written articles, given