distribution management of retail industry

8/7/2019 Distribution management of retail industry

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RETAILRETAIL

INDUSTRYINDUSTRY

NATASHA KIRTI (B 04)KRITI DOGRA (B 20)MAYANK SHARMA (B40)AMBUJ PURI (B 37)JANHAVI VYAS (C 21)KANIKA SURI (C 06)SHASHANK KHANDURI (C 26)HEENA GUPTA (B 21)PRATEEK CHOKRA (B 49)AAYUSHI GULLIYA (D 03)VAIBHAV GOYAL (A 54)

AAKANKSHA KHANNA (B 01)


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RETAIL SECTOR IN INDIARETAIL SECTOR IN INDIA

v Retailing is the interface between the producer and the individual consumerbuying for personal consumption.vvThe Indian Retail Market is a Rs.1,200,000 million marketv

vThe Indian retail industry accounts for 10% of GDP and 8% of employment.vv India is being touted as the next big retail destination with an average threeyear compounded annual growth rate of 46.64%.vv Organized Retail market is zooming ahead with an annual growth rate of30%vv The country will have over 300 malls translating to over 100 million sq. ft. inavailable mall space


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Big Bazaar is one of Indias biggest & most knownretail chains.

It is owned by Kishore Biyanis flagship company,Pantaloon Retail (India) Limited.

Provides the best products at the best price. Reflect the look and feel of Indian bazaars at their

modern outlets .

NTRODUCTION TO BIG BAZAARNTRODUCTION TO BIG BAZAAR


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Future Group follows the mantra of deliveringeverything, everywhere, every time to everyIndian Consumer in the most profitablemanner.

It shares the vision and belief that its customersand stakeholders shall be served only bycreating and executing future scenarios in theconsumption space leading to economicdevelopment .

To be efficient, cost- conscious and committed toquality in whatever it does is the Companysaim.

ISSIONISSION


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An order slip will be kept by the front end team of aparticular department that has to be given to thecategory team in the central office.

The category team will raise a stock transfer out(STO)

and send it to the delivery centre(DC) or warehouse. The DC will generate stock picks.

DC will generate a stock transfer note(STN) and agate pass.

DC will then arrange for the transfer of stock to thestores.

From here starts the part of logistics.

UPPLY CHAIN MANAGEMENTUPPLY CHAIN MANAGEMENTPROCESSROCESS


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-UPPLY CHAIN BIG BAZAAR-UPPLY CHAIN BIG BAZAAR


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A) RECEPTION OF GOODS FROM DELIVERYCENTER :

As soon as the store receives the goods it checks for

seal condition and number as mentioned in the gatepass and delivery note.

Then the security in the logistics department will

randomly check the number of cartons.

The particular department is informed regarding thereception of goods.

OGISTICS AT BIG BAZAAROGISTICS AT BIG BAZAAR


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Then the DC team will check the items in front of theconcerned departments representative ,as per theStock transfer Note (STN).

With the help of the department member, DCmember will find out any discrepancy(shortage/damage/expiry) and inform it to supply

site, if any problem arises.

There is an inward registerin which all the details ofinwardingare entered; the entry is also done in the

system (ERP).

Then the department member will move the stocks tothe respective floor.


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B) RECEPTION OF GOODS FROM THE VENDOR

If the goods are to be received from the vendor the storewill check for the TAX INVOICE and PURCHASEORDER.

Here the vendor himself has to go to the respectivedepartment and has to take permission for the submissionof goods in logistics.

A Goods Receive Note (GRN) is then prepared in triplicate-

for the logistics deptt. , for the respective department andthe vendor.

Finally it is the duty of the department to collect theirrespective goods from the logistics department.


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All the above process is for inwarding.There aresome few cases below in which OUTWARDINGis done:

Home delivery Store to store transfer.Damage or expiry stocks return to warehouse orvendor.

Return of non saleable items.


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Food bazaar out wardBig bazaar outward Vendor schedule register Bar code register Free gift register. Scrap register. Big bazaar vendor security inward

register. Big bazaar ware house security inward

register.

EGISTERS MAINTAINED BYEGISTERS MAINTAINED BYOGISTICS IN BIG BAZAAROGISTICS IN BIG BAZAAR ::


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Future Supply Chain SolutionsFuture Supply Chain SolutionsLimitedLimited

Future Supply Chain Solutions Limited (FSCS), a specialized subsidiary, offersstrategic, focused and consolidated approach to meet the groups large supply chainrequirements as well as those of select supply and business partners. The FSCS Team currently oversees the operations of an existing fleet of over 600dedicated trucks, contracted from established regional and national transport carriers,most of which are now equipped with GPS sets.In addition it provides integrated end-to-end SCM, warehousing and distribution, multi-modal transportation and container freight station.


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IntroductionIntroductionWal-mart has one of the largest private

distribution operations in the world.

It have more than 40 Regional Distribution

Centres.

It operates 24/7 Inside each DC, more than fivemiles of conveyor belts move over 9,000different lines of merchandise. Each DC supportsbetween 75 and 100 stores within a 250-mileradius.


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There are 750 stores and eachstore employs about 225associates.

Family apparel Healthy and beauty aids

Electronics Toys Lawn and garden items Jewelry Automotive products

Home furnishings Hardware Sporting goods Pet supplies Housewares

Walmart Discount StoresWalmart Discount Stores


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There are 2,843 Supercenters

nationwide and employ about350 or more associates.

Supercenter groceries feature:

Bakery goods Meat and dairy products Fresh produce Dry goods and staples Beverages Deli foods Frozen foods Canned and packaged goods Condiments and spices Household supplies

Walmart SupercentersWalmart Supercenters


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Neighborhood Markets offer aquick and convenient shoppingexperience for customers whoneed groceries,pharmaceuticals, and generalmerchandise all at our famousEvery Day Low Prices. Itincludes..

Fresh produce Meat and Dairy products Frozen foods

Dry goods and staples Health and beauty aids Stationery and paper goods Drive-through pharmacy etc..

Walmart NeighborhoodWalmart NeighborhoodMarketsMarkets


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Distribution processDistribution process


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Supply chain managementSupply chain management


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Purchase elementsPurchase elements


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Operation elementsOperation elements


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Distribution elementsDistribution elements


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Sustainable elementsSustainable elements


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Fastest growing retail stores with multiple formatsand retailing food, apparel, fashion, electronics,lifestyle products, music and books.

Established in 1996.

Retail footage of over 2 million square feet andover 400 Spencers stores in 65 cities.

It has15 hyper markets, 11 super markets and374 daily and express stores across 55 cities inthe country

IntroductionIntroduction


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Top management of RPG


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Spencers has retail footage of over 2 million square feet andover 400 Spencers stores in 65 cities. The company operatesthrough the following formats:

Spencers Hypermarkets: a fast growing retail network ofhypermarkets with large format stores in Mumbai, Gurgaon,Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijayawada,Aurangabad Durgapur and Kolkata.

Spencers Super: one of the largest supermarket chains in thefood and grocery segment in India.

Spencers Daily: small format stores conveniently located witha range ofproducts to meet daily household needs.

Spencers Express :food and grocery store next door

Format of Spencers outlets


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Spencers express is a store next door for the fresh needs at arms length.

These stores are around10 00 sq ft in size. They are open from 7 am to 9 pm and also provide with home delivery.

The Express stores stock dairy, fruit and vegetable,

bread and bread products,cut vegetables/ ready tocook, fruit juices, freshbatter, fresh coffee/tea,fresh masalas, freshpickles, fresh Ghee, freshfish and meat.

Spencers ExpressSpencers Express


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The Spencers Daily store is a friendly neighborhood store, which caters to the

entire daily shoppingneeds - from regulargroceries to fresh food and

also weekly top-upshopping.

About 4000-7000 sq ft in size and with a bright and

friendly atmosphere, Spencers

Daily savesthe hassle ofbargaining with the localKirana shop owners (because itoffers the lowest possibleprices).

Spencers DailySpencers Daily


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Spencers Fresh stores provide with an enjoyable andconvenient shopping environment in very ownneighborhood. These 2000 sq. ft. air- conditioned storesare well stocked with fresh food of the very best quality,such as fresh farm produce, vegetables, fruit, milk, eggs,breads and much more.

With an impressive range and a clean, bright and hygienicambience, Spencers Fresh is far better than the regularsabzi mandis or local vegetablemarkets and at Spencers

Spencers FreshSpencers Fresh


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The Spencers Super is the place to go for the monthly shopping.

About 8000-15,000 sq. ft. in

size ,the Spencers Super not only caters to the daily needs but also stocks home care products; personal care

products, Bakery, Chilledand frozen food; Baby carebesides groceries &staples, fresh fruits andvegetables..

Spencers SuperSpencers Super


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The Spencers Hypermarkets are huge destination stores,

more than 25,000 sq. ft. intrading area. Shoppers comehere looking for fantastic deals

across all categories. Hypermarkets ensure a

comfortable, clean, bright andfunctional ambience to shopalong with the convenience offinding everything under oneroof at the best value formoney.

Spencers HyperSpencers Hyper


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Spencers has become a popular destination for shoppers in India withhypermarkets and convenient stores catering to variousshopping needs of its large consumer base.It aims to provide world class shopping experience to its customers by

ensuring convenient store locations.Trusted quality, great value for money and a wide array of products


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Distribution Channels in

Spencers


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Branded ProductsBranded Products

Wholesalers

CFAs

Distributors

Store

Supplier


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Non Branded ProductsNon Branded Products

Supplier

CFA

Wholesaler

Distributor


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Fruits and VegetablesFruits and Vegetables

Supplier

SourcingAgent

Store


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In-house supply chain mgmt. tools were developed such aspoint of sales software.

Spencers adopted MIS with a reporting module for its backoffice transactions.

It monitored price fluctuations daily in whole sale market.

A vendor mgmt. system enabled vendors to send reportdirectly to the pantaloons.

It institutionalized both at vendor premise & its own

warehouses.

Supply Chain ManagementSupply Chain Management


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Minimum Suppliers

Creation of Regional Hubs

Replenishment Frequency

Sourcing with minimum intermediaries

Salient featuresSalient features


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Advanced Planning and Scheduling Systems

Store Site Location

Visual Merchandising

Expansion into small towns and rural centre

Technological Integration toTechnological Integration toimprovise Supply Chainimprovise Supply Chain


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istribution andistribution andanagement at Relianceanagement at RelianceFreshresh


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Reliance Fresh is the convenience store format which a partof Reliance Retail limited, a fully subsidiary of RelianceIndustries Limited.

Their major focus was on selling fresh fruits and vegetablesat lower prices by eliminating the middle men and

intermediaries. RRL launched its first store in Hyderabad in November

2006; major focus was on selling fresh fruits andvegetables at lower prices by eliminating the middle menand intermediaries.

These stores sell fresh fruits and vegetables, staples,groceries, fresh juice bars dairy products and nonvegetarian products.

Aboutbout


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Stores, size varying from 2000-4000 sq ft, are located in theradius of 1-2 km of each other providing a good coverageof the area.

High quality products are offered to the customers havingbetter shelf life and more consistent quality. Company has

expanded its supply chain management and it is capableof handling it rapidly growing stores network effectivelyand efficiently.

Around 150 warehouse clubs or distribution centers to

supply to the small retailer Feed the huge retail chainthrough seven wholesale terminals and numerousDistribution Centers.

The stores of Reliance Fresh are either owned by thecompany or leased areas. All the stores are run by the

company.


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Reliance Fresh stores ranging from 2,000 to 5,000 sqfeet, provides, customers with a variety of freshfruits, vegetables, staple foods and other products ina world-class ambience. The assortment varies fromstore to store depending upon the location of the

store and the kind of customers it target.

The assortment is decided by a Category Team whichconstantly reviews the choice of product based oncustomer feedback.

AssortmentAssortment


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hannel Structurehannel StructureFarmers

Collection Centers

Reliance FreshReliance FreshReliance Fresh

Farmers Farmers

National Sourcing

Progressing

National Sourcing


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& : .For F V items They track it on daily basis All theperished goods are dumped in the Municipal truck on.the next day

& :For non F V items As soon as the expiry date is,passed they are transferred back to the distribution.system

isposal Systemisposal System


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&nventory Management &nventory ManagementLogisticsogistics

Order Processing

Order TransportationOrder Selection

Order Transmission Customer Order

Customer Delivery


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Reliance itself pays for its logistics from the.Collection Centre to Retail Stores Reliance earlier had a logistics company to provide

.manpower as well as transportation of goods ,Now some of the company based truck and rented trucks

.are used for transportation

Logisticsogistics


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( )POS Point of Sale

This software tracks the available inventory in thestore but also maintain day outgoing of products from

.each category

echnology Usedechnology Used


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HomeShop18HomeShop18 is a venture of the Network18Network18 GroupGroup, andprovides comprehensive virtual business that helpscustomers make informed choices and extract the best

value for their money.

HomeShop18HomeShop18 is the Groups online & on-air retailmarketing and distribution venture which startedoperation in 20062006

Launched as Indias first 24 hourfirst 24 hour Home Shopping TV

channel on April 9, 2008April 9, 2008

About The Co.About The Co.


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Network in 1600 cities1600 cities Started with their association with Ferns & PetalsFerns & Petals and

CeasefireCeasefire VesproVespro, a camera brand - `4.5 crore sales/annum to `40

crore

Accounts for 4.5 % of all digital camerasdigital cameras sold in thecountry

Largest seller ofstainless steel dinner setsstainless steel dinner sets Biggest retailer ofReebokReebokmerchandize WhirlpoolWhirlpool came up with a new range of refrigeratorrefrigerator for

the channel Closed 2009-10 with sales of `330 crore and hopes to

double the figure this year Sells more than 500 brands500 brands and 1,00,000 products1,00,000 products

Overcame the Touch-Feel-Compare trendTouch-Feel-Compare trend and now has

A Virtual MallA Virtual Mall


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HE Operation PROCESSHE Operation PROCESS

Notice the intermediaries missing. This is the reason for lower costs


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TELEPHONYELEPHONY


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ebeb


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About 35 cities of the country have malls Internet population is just 40 million

In contrast, About 100 million cable & satellite homes in the country 20 million DTH television connections

Almost 70% of the buyers on HS18 are from small townswhere there are no malls & internet penetration is slow

ComparisonComparison


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VISIONVISION


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To be a global retailer in India and maintain its No.1position in the Indian market in the Department Storecategory.

Values that help us in achieving our mission and vision:

We will not take what is not ours. The obligation to dissent (against a viewpoint that is not

acceptable).

We will have an environment conducive to openness. We will believe in innovation.

We will have an environment conducive to development.

VISIONVISION


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Customer Profile - age group of 16 to 40, SEC - A and B+,youngcouples with a monthly household income above Rs.15,000

Range of Merchandise - apparel and lifestyle accessoriesfor the

entire familyFrom apparel brands like Provogue, Colour Plus, Arrow,Levi's,Scullers, Zodiac to cosmetic brands like Lakme,Chambor, Le Teint Ricci etc., Shoppers' Stop caters to everylifestyle need.

Shoppers' Stop has also introduced its own line of clothing

in theclassic, value classic and value fashion segments - LIFE,STOP,KARROT and KASHISH that are available across differentcategories.

Shoppers Stop ProfileShoppers Stop Profile


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Director Buying and Merchandising Supply chain management head Manager logistics and distribution Distribution Coordinator (link between

SS and DCs) Four Distribution Center

LOGISTICS hierarchyLOGISTICS hierarchy


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Entire network of entities, directly or indirectly interlinkedand interdependent in serving the same consumer orcustomer

It comprises ofvendors that supply raw materialproducers who convert the material into productswarehouses that store

distribution centers that deliver to the retailersretailers who bring the product to the ultimate user

Supply chains underlie value-chains because, withoutthem, no producer has the abilityto give customers what they want, when and where they

want, at the price they want , Producers compete witheach other only through their supply chains, and nodegree ofimprovement at the producer's end can make up for thedeficiencies in a supply chainwhich reduce the producer's ability to compete

Supply ChainSupply Chain


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Manufacturer

Mumbai DC Delhi DC Banglr DC KolkataD 6stores 3stores 3stores 1store

Buying ChannelBuying Channel


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Warehousing - Performance of administrative and physicalfunctionsassociated with storage of goods and materials. Thesefunctions includereceipt, identification, inspection, verification,putting away, retrieval forissue, etc

Regional Warehouses

No in-store warehousesNumber of warehouses - 4Location Metros (Mumbai, Delhi, Banglore, Calcutta)Floor Area 20,000 to 22,000 sq.ftTransportation from warehouse to Store Done by the

DCs

WarehousingWarehousing


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Shoppers Stop has a system of checking stocks ona continuous basis 90 departments - each day one department is

frozen after closing hours and the staff is made to scan the tags and feed in the

stock levels in the systemThe staff is completely unaware of the stock levels

according to the systemThe system then compares the actual to the

customary and gives a variance reportsThus there is stock matching done everyday and

the entire store completes a cycle in 3 monthsi.e, 4 cycles of stock taking each year.

Inventory ManagementInventory Management


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Every day Auto Replenishment Shoppers Stop has determined its minimum stockkeeping units and as soon as

the stocks in the store touch that level, the DC istriggered to send the replenishment

Thus the system automatically checks for stockout and replenishes itThe lead time for replenishment is 1 dayEvery night data is collated and a store-wise listof merchandise is generatedDuring the day the dispatched is made ready and

the next day morning 6.00am the truck leavesreaching the store in an hours time.

Inventory ManagementInventory Management


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Shoppers' Stop has streamlined its supplychainhas developed process manuals foreach part of the logistics chain

These modules include vendor management

purchase order managementstock receiving systemspurchase verification and inventory build upgeneration and fixing of price and store tags

dispatch of stocks to the retail floorforwarding of bills for payment

Supply Chain Management.Supply Chain Management.


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distribution management of retail industry

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