5 Sure Shot Techniques To Reduce Costs in the Retail Supply Chain

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5 Sure Shot Techniques

The process of managing all the operations that are involved in the supply chain process of any retail business is known as retail supply chain management. The major factor that differentiates it from other supply chain management processes is the amount of movement of products involved in the process. Along with that, the fast-moving nature of products in the retail industry also makes it different from other supply chain management processes. Retail businesses need to monitor their supply chain operations very closely to make sure that they are free from any kind of defects and also ensure timely deliveries.

However, warehousing plays a major role in making sure that the defects are relatively low during the whole supply chain process. Therefore selecting the best warehousing partner like AWL India can help you in saving your resources without damaging your products. AWL India understands that retail management is critical for your business and that it needs to be monitored properly. Moreover, the rapid movement of goods in and out of the warehouse is what AWL India has expertise in and what is required in the retail supply chain business.

List of 5 Techniques To Reduce Retail Supply Chain Costs

Retail businesses cannot afford any unnecessary costs as they can damage the productivity of the entire business. Incurring any unessential costs in the business can also have an impact on your other processes. This will make the processes non-efficient and can block your funds in multiple fixed assets. However, selecting AWL India and applying these techniques can help you in improving the performance of your supply chain at an optimum level. 

1. Smart Warehousing

For the expansion of any business, a centralised warehouse can create difficulties. A centralised warehouse can result in increased distribution costs and have a negative impact on the supply chain operations of the business. AWL India’s smart distributed warehousing solutions can enable companies to expand their business operations into their target regions. Having multiple warehouses across different regions can help in order fulfilment in the most cost-effective way possible. AWL India allows businesses to rent warehousing spaces according to their demands. They even provide customised warehousing solutions that are specially catered to fulfil your business requirements. Introducing technology in the warehouse can help in reducing human errors and also brings down operational costs at the same time.

2. Manpower Costs

Human labour charges or costs are termed manpower costs. This can be a challenging factor to control when your business is growing. Manpower costs include labour wages, training and development costs, additional hiring costs, manual error adjustments, and various other charges. AWL India with its warehouse management system or WMS is capable of helping your business to avoid such unnecessary costs. Introducing automation into your retail supply chain management system can make optimum usage of the available workforce and other resources.AWL India ensures the reduction of manpower costs by providing a continuous and seamless workflow with zero decision-making errors. Digitization has made it easy to scan individual pieces of inventory for efficient tracking without the risk of any human errors. This helps in reducing the cost in the retail supply chain at the same time.

3. Localise Fulfilment

In any supply chain operation, the transportation of goods from one point to another individually costs around fifty percent of the total logistics cost. Therefore, reducing the distance between your warehouse and the customer is extremely important to control and reduce the operational cost for your business. Your products will have to travel a lesser distance if your business is having multiple warehouses. The closer your warehouse is to your customer, the quicker your fulfilment would be, resulting in the reduction of your supply chain costs. AWL India provides regional utilisation, which is the idea of fulfilling maximum orders locally by enabling your business to have multiple warehouses. Regional utilisation is the most prominent solution for cost management in the retail supply chain industry. AWL India utilises regional utilisation along with the latest automation technology. This enables your business to be well aware of the demand for a particular product in a specific region. This way the right combination of products can be shelved in the warehouses thus, reducing the overall cost of the retail supply chain process.

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4. Using Various Channels For Order Fulfilment

Last-mile deliveries are the most expensive part of any supply chain process. They contribute to amount up to half of the total shipping costs. AWL India offers omnichannel retail solutions which you can implement in your business. By doing so, you would be able to cut the operational costs on your supply chain and the customers would also be able to receive their orders more quickly. AWL India provides you with multiple warehousing locations throughout the country, which can help you in reducing the shipping cost for your products. Therefore, with AWL India you can have multiple warehouses across the country which enables you to deliver products to your customers at an affordable cost. Faster deliveries through various channels not only provide customer satisfaction but also help in reducing the cost of the whole supply chain process. 

5. Making Data-Backed Decisions

When your business is not able to forecast the demand for products, you might end up having dead stock sitting in your warehouses. This dead stock is also known as obsolete inventory. Having obsolete inventory in your warehouse can increase the supply chain costs for your business. Moreover, your capital can be tied up with this obsolete stock and can have an impact on the operational costs of your business. However, with AWL India, you can easily predict demand forecasts and make data-backed decisions. With the help of relevant data, your business can create product assortments in the warehouse. This way, your business will be able to meet customer demand successfully without overstocking or understocking problems. This way you can easily reduce the costs in your retail supply chain without causing any wastage or redistribution costs.

With AWL India’s relevant data, your business would be able to predict future demands even for the next year or season. Analysing previous data charts can help in creating favourable future estimates, which helps your business to place the right quality and quantity of products at the right place at the right time. This data can also help you in determining and manufacturing appropriate quantities as per the demand thus, reducing unnecessary expenditure and other costs.


Your existing supply chain methods can be cost-consuming which requires you to implement cost-cutting methods. AWL India helps you in reducing the cost of the supply chain of your business. However, it is important for you to understand that controlling the cost is the first step that you take towards improving the efficiency of your business. By doing so, you can gain a competitive edge over your business competitors. Above are a few solutions that AWL India provides to help you in reducing costs in your retail supply chain. Moreover, you can achieve greater benefits with AWL India and simultaneously reduce your operational costs.

AWL India introduces automation in your existing supply chain models. It also analyses data to help you make strategic decisions which in turn help in cutting supply chain expenses. Moreover, AWL India’s cost reduction techniques can help you in gaining a competitive edge over your competitors in the market.

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