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Supply Chain Management in Retail
Submitted By:Uday Mishra
GSBA G. Noida
9891683518
CONTENTS
• SCM- Concept• Cyclic View of SCM• Objective of SCM in Retail• Need of SCM in Retail• Integrated Supply Chain Management & its Benefits• Process View of SCM• Evolution of SCM• Innovation in SCM• Functions of Retail Supply Chain• Retail Logistics & its Benefits• Emerging Concepts of Retail Logistics• Food and Grocery Supply Chain• Bibliography
Concept of SCM
Those activities associates with moving goods from the raw materials stage though to the end user. It not only includes the manufacturer and suppliers but also transport, warehouse, retailers and customer also. These all activities are monitor by the information system.
Module 1:Supply Chain Management
Cycle I
Cycle
II
Cycle III
Cycle
IV
Customer
Distributor
ManufacturerSupplier
Retailer
Objective of SCM in Retail
Example of Supply Chain in Retail
Information Flow
Raw Materials
RETAILERFACTORY DISTRIBUTOR WHOLE SELLER
SUPPLIER
Finished Goods
Need of SCM in Retail
• Cost Cutting
• Time Saving
• Customer Satisfaction
• Increase Profit Margins
Need of SCM in Retail
• Physical Flows
• Information Flows
• Financial Flows
Integrated Supply Chain Management
• SCM is an integrated process where every activity is interrelated with the system for efficient flow of material from supplier to the end users.
Supplier Manufacturer Distributor Retailer Customer
Benefits of Integrated Supply Chain
• Achieving the best delivery performance.
• Reduction in inventory
• Lower supply chain cost
• Improvement in overall productivity
• Accuracy in forecast
Module 1:Supply Chain Management
Concept of supply chain could
be thought of as a loop
SCM starts with the customer
and ends with the customerCustomer could be an internal
customer or an external customer
Module 1:Supply Chain Management
A push-based SCM takes longer to react to thechanging market place
In a push-based supply chain, production decisionsare usually based on long-term forecasts
In push-based strategies, SCM experience increased transportation costs, high inventory levels and high manufacturing costs
In a pull-based supply chain, manufacturing is demand drivenso that it is coordinated with actual external customer demand rather than a forecast
Push View of SCM
Pull View of SCM
Lead-time reduction occurs as the variabilities are better monitored in pull-based SCM
Pull-based systems are often difficult to implement when lead timesare so long that it is impractical to react to demand information
Module 1:Supply Chain Management
• Conventional Approach
• Modern Approach
Conventional Approach
Sales & Distribution(Demand)
Manufacturing(Capacity)
Procurement(Material)
CUSTOMER
Optimize to Mfg objectives
Optimize toLogistics obj
Optimize toSales & Mktg obj
Modern Approach
• Just In Time (JIT) Inventory Management Model
• Total Quality Management (TQM) Model
• Efficient Consumer Response (Ecr) Working Group.
Innovation in SCM
• Vendor managed inventory
• Collaborative planning forecasting and replenishment.
• Cross docking
Functions of Retail Supply Chain
• Physically movement of goods from one outlet to another.
• Stocking the good at the outlets where needed.
• Management of the entire process.
Retail Logistics
Retail logistics is the organized process of managing the flow of merchandise from the source of supply to customer.
The main objective of logistics management is to reduce the inventory – holding cost and improve profits
Benefits of Retail Logistics
New Emerging Concepts of Logistics
• Third party logistics
Supply of logistics related operations b/w traders by an independent organizations. ex- Federal Express, DHL, Maersk Logistics.
Contd….
Fourth Party Logistics
It refers to the evolution in logistics from suppliers focused on ware housing and transportation to suppliers offering a more integrated solution
Contd…
Reverse Logistics
Process of moving goods from their typical final destination, for the purpose of capturing the value or proper disposal .
Stands for all operations related to the re use of products & materials
Video Example
• Fresh-O-Mart
• Supply Chain
Conclusion
• A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products and the distribution of these products to the customers.
Bibliography
• Reference Books : Swapna Pradhan
Levy & Weitz
Gibson G. Vedamani
Gilbert
• Magazines : The Franchising World
Mastermind
• Internet : i2solutions.net
Google.com
Wikipedia.com
