Fresh retailer’s dilemma

Some one has said….. ‘The concept ‘fresh’ is in the limelight. One often asks, for example, what is considered fresh and what not. ‘Fresh’ is a multi-faceted concept. To the retailer, fresh is a product segment, while it actually also connotes quality. In logistics, fresh has a uniform message: a fresh product is perishable. It is this that makes the work of a fresh products purchaser for a retailer so special. The purchaser has to buy products of the right quality which a) cater to market demands, and b) fit the timing necessary for distribution and marketing. Orders of fresh products for the shop floor have to be estimated correctly because empty shelves are a no-no, on the one hand, while product waste due to decay has to be minimized, on the other. Value decrease due to quality loss can result in price reductions, or even result in products being thrown away. If product waste in a retail outlet is too low, this could signify a risk of empty shelves and an inability to offer fresh products to the consumer (nil sales). This smaller assortment will lead to drop both in turnover and customer service. If product waste is too high, one could increase the returns of the fresh segment by counter measures’. But what are those counter measures? Some other time..


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