Business Retailing

is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an
integrated system called the supply chain. A retailer purchases goods or products in large quantities
from manufacturers or directly through a wholesaler, and then sells smaller quantities to the consumer for
a profit. Retailing can be done in either fixed locations or online. Retailing includes subordinated
services, such as delivery. The term "retailer" is also applied where a service provider services the needs
of a large number of individuals, such as a public utility, like electric power.

Overview of the Retail Trade in the Philippines

Retail trade in the Philippines has blossomed recently. The Philippine National Statistics Office counted
437,325 establishments engaged in wholesale and retail trade in 2000, with the industry employing over
1.7 million people. Retail sales in 2002 amounted to 1,692.3 billion pesos (approximately US$30 billion),
an 11.1% increase from 2001. Most retail stores in the Philippines are small, home-based, unregistered,
and employ a staff of less than 10 people, with food retail outlets comprising about 65 percent of the total
number of outlets. Thirty percent of the countrys total retail sales are concentrated in metro Manila.
The Retail Trade Nationalization Act once confined retail trade to Philippine nationals. However, recently
the Retail Trade Liberalization Act paved the way for increased retail competition, along with expansion
and growth, innovation, introduction of new technologies, professional management and diversification
into new sectors. Trade liberalization has also increased opportunities for International retailers. Retailing
in the Philippines spans a gamut of venues including sari-sari stores (mom and pop stores), sidewalk
vendors, wet and dry markets (produce and dry goods), groceries, supermarkets, hypermarkets,
warehouse and discount clubs, large malls, mall stores and shops, and convenience stores (also known as
c-stores)
However, the lifeblood of Philippine retailing is the huge network of small mom and pop stores known as
sari-sari stores. Sari-sari variety stores make up 90% of the retail outlets. Sari-sari stores offer lowerincome consumers easy accessibility and credit terms, as well as the opportunity to purchase in smaller
portions in line with limited budgets. A modern version of the sari-sari store is the convenience store. It
mixes the attributes of a traditional sari-sari store, with that of a supermarket, and offers a wider selection
of product lines in a friendly, comfortable, and strategically located venue. Typically open 24 hours a day,
7 days a week, it caters to the fast-paced and changing life-styles of urban professionals. There are over
600 convenience stores in the Philippines.
The Philippine retail industry is fragmented, but as large international players enter the country, the
industry will likely experience greater consolidation and should be prepared to respond and adapt to

incoming paradigm shifts. In fragmented Asian markets like the Philippines, Japan, and Korea, consumers
tend to remain loyal to retail stores. In the Philippines, building customer loyalty is a sensible goal for
retailers and the ability of a retailer to plan and implement customer retention measures determines future
success or failure.
While retail saturation continues to grow in the Philippines, the industry continues to offer market
opportunities for new entrants and for current players seeking to expand. Franchising is one of the fastest
growing sectors in the economy. The growing demand for new products and services attest that there is
plenty of room for new players.
Retailers in the Philippines find their market increasingly competitive, with foreign retailers attempting to
move into the market in greater numbers. Competing with global retailers will become increasingly
difficult, unless local Filipino retailers can differentiate themselves in ways meaningful to their
customers.
Importance of systematic Receiving of Incoming Goods

Each delivery should be checked. Verify the consignee's name and address. If you
have more than one location, be sure the goods are for your location. Check the
merchandise, and verify that it is the same as described on the delivery receipt. Check
each labelled carton to ensure that it belongs to you.

Importance of systematic Checking of Incoming Goods

All of the items have a sole packing ID number, which match the ID on the packing list and
invoice. All of the goods are packed into cartons with packing list in it. Every carton marked with
carton number.

So when you receive the goods, first thing please check if all of the cartons are well packed, no
damage. If there is any damage please take pictures and send to us at the earliest time, so that if
any item missing or damaged we can claim from shipping company.

Importance of systematic Marking of Incoming Goods

Prior to importing your goods into the Philippines, you should ensure the overseas supplier has marked
the goods with the country of origin. For example, goods originating in China should be marked "Made in
China". The marking must be legible and permanent enough for the ultimate purchaser to be made aware
of the goods origin. The ultimate purchaser is the person who will last purchase or receive the article in
the condition in which it was imported. That could be a consumer (one who buys), processor (one who
further processes materials or recipient (receiver of a gift).

Lean Logistics
Organizations are stuck in a constant cycle that pushes them to improve their business in order to
gain a competitive advantage. They consistently feel the stress to reduce costs, time and inventory.
One way that has proven to improve an organization substantially is a supply chain process known
as Lean Logistics.

What is the importance of Lean Logistics?

Lean Logistics, simply put, can be described as a way to recognize and eliminate wasteful activities
from the supply chain in order to increase product flow and speed. In order to achieve Leaner
Logistics; organizations need to implement leaner thinking. Organizations that incorporate lean
thinking into their supply chain can benefit from improved customer service, reduced environmental
impact by reducing waste and even overall corporate citizenship.

What is Lean Thinking?

Lean Thinking originated from manufacturing methods used by Japanese automotive manufacturers.
Due to minimal resources and shortages, they employed a production process that worked with
minimum waste. This thinking soon spread to all manufacturing areas, new product development
and supply chain management. (Krafcik and MacDuffie, 1989)
Lean Thinking involves a constant cycle of seeking perfection by eliminating waste and maximizing
product value. This process means that end-customers dont pay for organization inefficiency and
waste. Four principles are involved in achieving minimal waste:

1.
2.

Specify value: Customer value is identified and added along the supply chain network.
Map out value stream: Identifying all processes along the supply chain network in order to
eliminate the processes that do not create value to the overall product. This mapping helps us
understand how the value is created into the product from the customers perspective.

3.

Create a product flow: Applying the factors outlined in order to make valuable processes to
occur in a smooth system; minimizing interruptions, inventories, downtime.

4.

Establish customer pull: Manufacturing only in response from the customer that more is
needed; implying that demand information is made available across the supply chain.

Each of these four processes seeks perfection to progressively improve every process; minimizing
waste and maximizing value.