Keyword

Retail, logistics, Italy, vertical relationship

Abstract

The present paper examines on the basis of a single case-study the evolution of logistics in the Italian grocery industry. It analyses the effects of the reengineering the logistic system on efficiency and, in particular, on the manufacturer-retailer relationship. The paper sheds light on new logistic strategy made by the largest retailer in Italy. It shows also that the reorganisation of the supply chain affects the relationship between manufacturer and retailer. This reorganisation leads to important changes in the balance of power along the distribution channel. This paper is based on a specific case study, therefore it may not be generalised outside Italy. However, it represents a first example applying the principles of logistic centralisation in the Italian retail industry, which is characterised by a low level of innovation in logistics, due to its fragmented market structure. Our work aims to suggest managers of retailing firms operating in Italy the main operational guidelines to run their company. The study, in fact, provides important lessons on how the adoption of innovative logistic system can positively affect operational efficiency and vertical relationship


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