Logistic management creates value in an organizational supply chain by managing transport services that a firm offers to retailers using direct delivery of products. Transportation acts as a crucial component of business logic in an organization. Logistic and retailing ensures the availability of products to consumers in different locations ( Umair et al., 2019 ). However, transportation as a logistic factor determines the supply efficiency of products to retailers in different parts of the world. Logistic operations require a lean transport system to minimize operational cost, offer sufficient logistic efficiency, and promote quality of services to the retailers in various locations. According to Umair et al. (2019 ), transportation influences the production of products and sales of items at the retailing stage. Reduction of production cost results in the availability of affordable products at the retail stores promoting great satisfaction of customers. Effective logistic and transportation management promotes the satisfaction of retail stores. Retailers ensure the availability of products to customers. Consequently, sufficient transport and logistic management promote the satisfaction of consumers and improve the sale of products at the retail stage.
Logistic management influences the distribution channels of goods and services in various parts of the world. Aspects such as taxation structure, distance, transport, and demands for goods and services influence the distribution channels. Additionally, distribution channels entail multiple constituents, such as merchants, agents, and facilitators ( Suri, Yadav, & GLOGIFT, 2020 ). Transporters in the product distribution channel facilitate the movement, delivery, and storage of products or items. The availability of multiple constituents in a distribution channel affects the profitability of retailers and the sustainability of their operations in the local environment or market. Multiple agents in product distribution channels promote value addition resulting in the cost of goods and services to customers. The high cost of products and services hinders the effort of retailers to generate adequate revenues in their market. Consequently, minimal revenue minimizes the operational sustainability of the retailers in their local markets.
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References
Suri, P. K., Yadav, R., & GLOGIFT (Conference). (2020). Transforming organizations through flexible systems management . Singapore: Springer.
Umair, A. S., Zhang, W., Han, Z., & Haq, S. H. U. (2019). Impact of Logistics Management on Customer Satisfaction: A Case of Retail Stores of Islamabad and Rawalpindi. American Journal of Industrial and Business Management , 9 (8), 1723-1752.