Logistics as a competitive advantage in retail organizations

Abstract

Retail plays an important role in the trade sector of the Brazilian economy, with net operating revenues of nearly BRL 1.7 trillion and more than 7 million workers in 2018, according to the latest Annual Trade Survey from the Brazilian Institute of Geography and Statistics. The entry of large multinational companies into the Brazilian retail market, where it is worth highlighting Amazon, has negatively impacted the market of Brazilian retail companies, which still use archaic methods and disqualified labor in their operations and processes. Amazon provides better logistics services that directly add value to the quality of products offered through a leaner and more profitable supply chain. Additionally, the behavioral changes brought about by Covid-19 have made consumers more satisfied with online shopping experiences than with visits to physical stores. The increase in internet shopping and the reduction of visits to sales outlets has caused a migration of consumption to digital media, which may generate long-term transformations in the strategies of companies. Thus, the objective of this research is to provide a conceptual proposal of the use of logistics as a competitive advantage in retail organizations, considering the best management practices for the logistics sector. As a research methodology, a systematic literature review was adopted, based on the PRISMA protocol, allowing the identification of 94 records, 12 of which were included in the literature review, due to their adherence to the researched theme. The main contribution of this paper is the development of a conceptual proposal for the use of logistics as a competitive advantage in retail organizations, comprising five aspects: Information Systems, Application of KPIs aligned with the Strategic Objectives of the Organization, Creating Value for Products, Modern Management Concept and, Need for Organizations to recognize the Benefits and Advantages of Logistics.