The prosperity of trade largely relies on the perfoemanc of trade support structures such as transport and logistics services. Combined with a liberalized economic environment, business-related logistics contributes to increased trade volume, especially in the retail sector. This is because logistic services develop a reliable connection and integration of trade within the local economy ( Mesa-Arango & Kumar (2017 ). Even though the contribution of logistics to the national economy cannot compare with other competitive sectors of the economy, its contribution to promoting local economic activities such as retail is crucial. Therefore, the transport and logistics sector is an integral part that allows firms to deliver essential social and economic outcomes.
Transportation is a critical factor in logistics ( Pournader et al., 2020 ). It provides an extensive network that allows for the movement of resources to the end market. Empirical researches and studies show that there is a positive relationship between trade and logistics. Descriptive statistics indicate that improved logistics has helped to create a competitive and open trade environment. It could also help to increase trade volumes when integrated with a better investment climate. The main focus of logistics is to reduce lead-time and the cost of transportation on a large scale. For this reason, retail shops find it easy to expand carry out their trading activities. Many retail shops that have grown dramatically over the years are known to rely on logistics as leverage for their growth.
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Transport and logistics provide a responsive transport network that is cost-effective and economical for retailers and other businesses that comprise the local economy. End to end visibility network helps the company to centralize its production without tampering with services of consumer channels and levels ( Pournader et al. 2020 ). Visibility allows retailers to easily monitor the movement of their goods at relatively lower costs. The main objective of logistics to a retail market is to provide a sustainable and operational business environment. It focuses on minimizing cost and improving overall efficiency.
References
Mesa-Arango, R., & Kumar, I. (2017). Hierarchical Value Chains Encompassing Freight Transportation and Logistics Sectors in the United States: Network Analysis Approach. Transportation Research Record , 2609 (1), 1-10.
Pournader, M., Shi, Y., Seuring, S., & Koh, S. L. (2020). Blockchain applications in supply chains, transport, and logistics: a systematic review of the literature. International Journal of Production Research , 58 (7), 2063-2081.
