A Study on Transport Cost Optimization in Retail Distribution

The aim of the paper is to optimize the logistics cost at the secondary distribution network of the retail supply chain. Transportation takes a crucial part in the manipulation of logistic. The operation of transportation determines the efficiency of moving products. This paper discusses the importance of transportation in retail logistics and various cost involved in it. Distribution network is optimized by load planning optimization and network optimization. This paper analyses various factors and provides solution to reduce the transportation costs so that contribution margin can be increased. This study is limited to retail distribution network in business to customer (B2C) channel. On completion of thorough literature review the paper identifies the research gaps in the area and ends with a conclusion and future scope of work.