Can we speak of a "wheel of retail logistics? The contribution of the wheel of retailing model

Marc Filser and Gilles Paché
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Gilles Paché: ISEM-ERFI - Université de Montpellier

No 2005-04, LEG - CERMAB / Centre de Recherche en Marketing de Bourgogne - Cahier de recherche from LEG - CERMAB, CNRS UMR 5118, Université de Bourgogne

Abstract: Academic research in retail logistics frequently emphasizes the importance of the logistics customer service for large retailers wishing to develop a sustainable competitive advantage. This research paper questions the validity of this reasoning, implying an evolution toward an indispensable logistical excellence. It seems that the new retail formats favouring a strategy of cost leadership, require as a priority the lowest possible logistical costs, rather than high customer service. It is only when these new retail formats propose sophisticated marketing services that customer service becomes essential, even if this means sacrificing logistical costs. But another retail format will then appear in the retailing sector, again favouring a strategy of cost leadership (and of low logistical costs). Therefore, the evolution of retail logistics is iterative, with constant returns to the components of logistical performance thought to be critical by large retailers. The concept of a "wheel of retail logistics", in reference to McNair's (1957) wheel of retailing model, is suggested to explain this phenomenon, with an application to the French context.

Keywords: Cost leadership strategy; Customer service; France; Retail logistics; Wheel of retailing model (search for similar items in EconPapers)
Pages: 8 pages
Date: 2005-06
New Economics Papers: this item is included in nep-mkt
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:lat:gstion:2005-04

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