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Retail Supply Chain

Retail Supply Chain. A Brief Overview. Retailing: An overview. Retailing World’s largest private industry - US$ 6.6 trillion sales annually Indian retailing Largest employer after agriculture - 8%* of population Highest outlet density in world - Around 12 mn outlets

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Retail Supply Chain

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  1. Retail Supply Chain A Brief Overview

  2. Retailing: An overview • Retailing • World’s largest private industry - US$ 6.6 trillion sales annually • Indian retailing • Largest employer after agriculture - 8%* of population • Highest outlet density in world - Around 12 mn outlets • Still evolving as an industry - Long way to go

  3. Evolution of Indian retail Modern Formats/ International Historic/Rural Reach Traditional/Pervasive Reach Government Supported Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas Source of Entertainment Availability/ Low Costs / Distribution Shopping Experience/Efficiency Neighborhood Stores/Convenience

  4. Types of Retail Outlets • The emergence of new sectors has been accompanied by changes in existing formats as well as the beginning of new formats: •         Hyper marts, typically 8,000 sq.ft and more •      Large supermarkets, typically 3,500-5,000 sq. ft. •       Mini supermarkets, typically 1,000-2,000 sq. ft. •         Convenience stores, typically 750-1,000 sq. ft. •         Discount/shopping list grocer

  5. SUPPLY CHAIN – PUSH vs PULL MODEL PUSH PULL

  6. RETAIL SUPPLY CHAIN – UNCERTAINTY FRAMEWORK

  7. UNCERTAINTY FRAMEWORK & MATCHIMG SCM STRATEGIES

  8. TYPICAL REVERSE LOGISTICS PROCESS IN RETAIL

  9. INFORMATION TECHNOLOGY THE BACKBONE

  10. RFID Technology What is RFID ? • Radio Frequency Identification • A micro-chip in a label used to transmit data when the label is exposed to radio waves

  11. RFID Basics What are the main components ? • RFID Tags • RFID Reader – Antena and transceiver(reader) • Host Computer • Major players: IBM, Texas Instruments Integrated chip

  12. RFID in Retail Supply Chain Automate the Supply chain process RFID TAG Reader

  13. RFID in Retail Supply Chain Benefits at a glance • Decrease in lost stock • Faster locating stock • Lower labour requirement • Reduction of out-of-stock • Low safety stock level

  14. Savings Function Execution Savings Scanning Eliminating bar code scanning on pallets and cases in the supply chain and on items in-store can reduce labor costs by 15% $6.7 billion Out-of-Stock Smart shelves monitor on-shelf product availability $600 million Shrink Real-time product monitoring reduces warehouse shrink, administrative errors and vendor fraud $575 million Tracking Improved tracking of the more than 1 billion pallets and cases moving through DCs annually $300 million Product Visibility Improved visibility of where products are in the supply chain in Wal-Mart’s DCs and supplier’s warehouses offers reduced inventory and costs of carrying this inventory $180 million Total $8.355 Billion Retail: Wal-Mart's Business Case Potential Annual Saving Source: eWeek, September 15, 2003

  15. Vital to Wal-Mart's successful retail model are the tremendous Walmart distribution centers that serve the thousands of stores across the states. Georgia, for example, is home to five Walmart distribution centers-Statesboro, Macon, LaGrange, Monroe, and Douglas. • A typical Walmart distribution center is more than one million square feet, or the equivalent of 10 Wal-Mart retail stores. More than two hundred and fifty dock doors serve the fleet of Walmart distribution center trucks that wait in the vast parking lots surrounding the buildings. The aforementioned LaGrange distribution center, which serves stores in Georgia and Alabama, loads and ships over five hundred tractor-trailers of merchandise a day from the one Walmart distribution center alone. • A majority of the merchandise one sees in a Wal Mart store goes through a Walmart distribution center first. This enormous volume necessitates the twenty-four hour a day, seven day a week schedule.

  16. THANK YOU

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