Supply chain Management & Retail Logistics

Supply chain Management

Retail Mantra• Right product• Right Place• Right time• Right price• Right quantity

Case – Departmental stores

Departments• Apparel - Department

– Men - Section• Casual wear – Sub-sections

– Design– Color– Size

• Formal cloths• Accessories

– Women– Children

• Gifts• Cosmetics• Kitchenware• Appliances• Electronics

• Merchandisers• Buyers• Stores• Finance & other functionaries

Supply chain management - Concept

• 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.

Simple supply chain – Past History• Local market• What was available – Limited availability• Few products – few suppliers• Simple task

Supplier Manufacturer Distribution centre

Retailer Customers

Physical flows

Information flows

Financial flows

Supply chain management - Today

• Growth of retail business • Wide Product portfolio• Increased number of suppliers• Increased pressure on margins• Cutting cost – Need of the hourIntegration of Supply chain managementDemand management – Customer focus & analysisResource management – Merchandising & Inventory analysisSupply management – Back end supplier analysis & mgmt

Supply chain management - Today• Just in time Inventory model - then• TQM - then• Quick response – QR Strategy – now

– POS– EDI– UPC

• Efficient consumer response - ECR

Physical flows (100+ SKU)

Information flows (GRNs, Pos, GPs……..)

Financial flows (CNs, DNs, Cheques…….)

Suppliers100+ MFR DC- 4+ Retail

20+

Customers ???

Customers????

Supply chain integration

• Short life cycles• High volatility• Low predictability• High Impulse purchase• Time-to-market• Time-to-serve• Time-to-react

• The lead time gap

Retail Logistics

• Objective: Reduce inventory holding costs and improve profits.

Definition: Logistics is the part of supply chain process that

plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the points of origin and the point of consumption in order to meet customers requirements.

Emerging concepts in Logistics

• Third party logistics• Fourth party logistics• Reverse logistics

Thank you