Period changes and Inventory Management: the Three Ages of Retail Logistics

Abstract

The present research paper establishes a framework for analysing changes in French retail logistics. Unlike other studies, in which only two stages are described (the manufacturer-controlled system as stage 1 and the retailer-controlled system as stage 2), the authors have identified three periods or “ages” in retail logistics. This is done by highlighting the two philosophies that the country’s retailer-controlled systems (stage 2) have successively experience: the first one being based on an instrumental orientation; and the second on managerial vision. To illustrate the proposed model, they refer to the location of inventory in the distribution channel, progressively moving from the downstream (outlet) end of the value chain toward the upstream (factories). Logically, this leads to the establishment of closer relationships between large retailers and manufacturers. The paper concludes with a discussion on the different directions a fourth period in retail logistics could take.