Question: 1 List the logistics challenges of mounting promotions and events at a retailer such as BTC. If consumers only purchased their requirements in line with
1 List the logistics challenges of mounting promotions and events at a retailer such as BTC. If consumers only purchased their requirements in line with their use, then it would be relatively easy to reorganise the end-to-end supply chain from shelf to national warehouse using lean principles (see Chapter 6). A simple demand–pull system replenishing tomorrow that which has been sold today, direct to shelf, would streamline store operations and reduce inventories significantly. Retailers like Wal-Mart in the United States and Tesco in Britain have pursued an everyday low price policy in an attempt to maximise this ‘steady state’ replenishment policy. However, in Europe, most retailers have found that customers enjoy promotions and that promotions boost sales. In any case, events like Christmas and back to school create huge surges in demand.
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