The paper “ Differences between Online and In-Store Retailing to the New Company Being Established in Australia” is a worthy example of a case study on marketing. Logistics refers to the supply chain section that is involved in the effective and efficient movement of goods, services or even information from their origin which is mostly the supplier to consumer. It’ s mostly crucial in ensuring customer’ s maximum satisfaction and also meets the legal requirements (Christopher 1997). Logistics management ensures that there’ s effective forward and reverse movement of goods or services from their origin points until consumption.
There are stages involved from the time the goods are manufactured until they reach the consumer and logistics management ensures that this process is efficient and effective to ensure consumer satisfaction. Managing the mix of logistics in an integrated retail supply chain and at the same time aiming to balance the cost and service requirements is the most essential element in logistics management (Sparks 1998). Retailing and logistics are mostly concerned with making the goods or services available to the customer at the right time and place- ensuring product or service availability all the time.
Due to the worldwide emerging technology, there has developed a retailing business that is trying to evoke the physical analogy of business. This is online retailing whereby the buyer and seller transact their businesses online via the internet and here no intermediary service is involved (McKinnon 2006). There’ s no physical contact in the shopping centers or bricks and motor retailers. This has altered the customers’ beliefs and needs and they expect instant product or service availability and satisfaction at their own convenient places and time. Physical distribution and material management have been replaced by logistics management as shown in the figure below (Figure 1.0).
This logistic transformation derives from cost and service requirements and also retailer change (Matthews & Hendrickson 2000). Materials management Physical distributionThere are three perspectives that should be managed extremely effectively if any organization is going to respond timely to market dynamics (Christopher 1997). They include The speed at which one brings an opportunity to the market (marketing time). The speed at which one attends to a customer’ s need (serving time). The speed one takes to adjust the output to meet demand’ s expectations( reaction time) He uses these to come up with means of managing lead time. DISCUSSIONIn analyzing the case for and against online retailing in Australia we will consider the two retailing methods.
First, the traditional or in-store retailing whereby there’ s a retail outlet. In this case, goods are transferred from the manufacturer via distributors or warehouses. The consumer purchases the product from the store or retail outlet. The second one is online retailing which is commonly known as e-commerce whereby the products are transferred from the manufacturer to one warehouse and then to a regional hub from where it is sent again to the customer.
Here the customer does not need to go to the store and take the product home by themselves as in the case of traditional retailing (Sparks 1998). There are two aspects that are motivating Australians to switch to online retailing. These are mostly price and convenience. Most consumers prefer to shop online instead of venturing into the stores and so there’ s no reason why retailers in Australia can’ t establish strong online systems to supplement their in-store operations.
They’ re facing such challenges as the manufacturers’ unwillingness to trade online though.