Business – 9.3 Operations strategy – Flexibility and innovation | e-Consult
9.3 Operations strategy – Flexibility and innovation (1 questions)
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Flexibility in delivery time means the retailer must be able to adjust order processing, warehousing, and logistics to meet tight deadlines, which can affect inventory management, staffing, and transportation costs.
- Strategy 1: Use of a distributed warehouse network
- Placing stock closer to major customer clusters reduces transit time.
- Provides redundancy; if one centre is overloaded, another can fulfil orders.
- Strategy 2: Partnership with third‑party logistics (3PL) providers
- 3PLs offer scalable delivery capacity, allowing the retailer to expand or contract resources as demand fluctuates.
- Access to advanced routing software improves route optimisation and reduces lead times.
Both strategies increase operational complexity and cost, but they enhance the retailer’s ability to meet the 48‑hour promise, thereby protecting market share and brand reputation.