2.3.2 Reasons for Modifications in Retail Planning
The structural properties of the retail SC are challenges to design a comprehensive DSCP framework. The reasons for modifications in grocery retailing are especially consumer interaction, focus on sales and demand planning, distribution manage-ment and warehousing as production.
2.3.2.1 Consumer Interaction
The key to retail success is to understand and manage the consumer behavior. Fernie and Sparks (2009) highlight the impact of consumers on SC, as retailers can be identified as “active designers and controllers of product supply in reaction to known customer demand.” Grewal and Levy (2007) describe it as customer experience management, which includes all points of contact at which the customer interacts with the business, productor service. Blackwell and Blackwell (1999)state that the greatest benefits in SCM can be derived from demand side management. The consumer’s behavior initiates many of the activities and processes in the SC (Pal and Byrom 2003). The goal thereby is to satisfy consumer demand quickly, with reasonable quality and at efficient costs and prices. Instore behavior of many consumers determines requirements for retailers DSCP (e.g., in Dre`zeetal.1994; Bu¨schken2009; Chandon et al. 2009; Xin et al. 2009; Hu¨bnerandKuhn2011e). Furthermore, consumers are part of the value chain, as they execute the final process, taking products from the shelves to the point of consumption (Granzin et al. 1997).
2.3.2 Reasons for Modifications in Retail PlanningThe structural properties of the retail SC are challenges to design a comprehensive DSCP framework. The reasons for modifications in grocery retailing are especially consumer interaction, focus on sales and demand planning, distribution manage-ment and warehousing as production.2.3.2.1 Consumer InteractionThe key to retail success is to understand and manage the consumer behavior. Fernie and Sparks (2009) highlight the impact of consumers on SC, as retailers can be identified as “active designers and controllers of product supply in reaction to known customer demand.” Grewal and Levy (2007) describe it as customer experience management, which includes all points of contact at which the customer interacts with the business, productor service. Blackwell and Blackwell (1999)state that the greatest benefits in SCM can be derived from demand side management. The consumer’s behavior initiates many of the activities and processes in the SC (Pal and Byrom 2003). The goal thereby is to satisfy consumer demand quickly, with reasonable quality and at efficient costs and prices. Instore behavior of many consumers determines requirements for retailers DSCP (e.g., in Dre`zeetal.1994; Bu¨schken2009; Chandon et al. 2009; Xin et al. 2009; Hu¨bnerandKuhn2011e). Furthermore, consumers are part of the value chain, as they execute the final process, taking products from the shelves to the point of consumption (Granzin et al. 1997).
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