A                     Project Report                              On          Comparative study of Supply Chain Management...
IndexS. No.   Particulars                          Page No.1        Profile of:                          3                ...
Garments Industry:Introduction about Levis Strauss & Co.Levi Strauss & Co. (LS&CO) is a privately held American clothing c...
Supply Chain Management of Levis Outlet:Retailers follow 1 level distribution channels to sell their product, such as:Manu...
Resources Involved:  1. Inventory Positioning - It refers to the selective location of various items in the product     li...
Comparison related Questions: (Store-keepers’ Point of view)  1. Where are you purchased the product?  2. Where do you sel...
Comparison between Retail store and Local store:     Basis of Difference       Levis’ Store’s supply Chain   Local Store’s...
Similarities in both type of store:      1. No Home Delivery: There is not any kind of home delivery system, neither in re...
Analysis of Comparison:  1. The study reveals that the retailer purchases products from both manufacturer, and     agents....
Recommendations:      Levis should have warehouse near to the company outlet, so when there is any need,         they can...
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Scmproject group7

  1. 1. A Project Report On Comparative study of Supply Chain Management Of Levis Outlet and Local StoreSubmitted to:- Submitted by:-Mr. Ajeta Bhatia Garima jain Meenakshi Gupta Neha Ajmera Sunil Jangid 1
  2. 2. IndexS. No. Particulars Page No.1 Profile of: 3 Levis Outlet Local Store2 Supply Chain Operation of; 4 Levis Outlet Local Store3 Resources Used 54 Comparison Related Questions 65 Comparison Between Levis and Local 7 Store6 Similarities 87 Analysis of Study 98 Recommendation 109 Learning from the Project 10 2
  3. 3. Garments Industry:Introduction about Levis Strauss & Co.Levi Strauss & Co. (LS&CO) is a privately held American clothing company, known fordenim jeans.The core Levis was founded in 1853 in San Francisco, specializing in riveted denim jeans anddifferent lines of casual and street fashion and it is a worldwide corporation organized into threegeographic divisions/headquarters: 1. Levi Strauss Americas (LSA), based in the San Francisco headquarters; 2. Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and 3. Asia Pacific Division (APD), based in Singapore.Levi Strauss & Co. is a private global business, making and marketing our clothing in theAmericas, Europe and the Asia Pacific region.Founder: Levi StraussArea Served: WorldwideNo. Of Locations: 470 company-operated storesIntroduction of Local retailer shop:The local retail store (Shri Shayam Garments) exist in “kanta mention, champawat market,haldiyo ka rasta, Johri bazaar Jaipur. It is mainly in the business of zeanses, shirts, t-shirts.Founder: Ravi AgarwalArea Served: Jaipue CityNo. Of Locations: only 1 store 3
  4. 4. Supply Chain Management of Levis Outlet:Retailers follow 1 level distribution channels to sell their product, such as:Manufacturer Retailer CustomerSupply Chain Management of Local Store:Local retailer follows two type of supply chain, such as: a. Manufacturer Retailer Customer b. Manufacturer Distributor Retailer Customer 4
  5. 5. Resources Involved: 1. Inventory Positioning - It refers to the selective location of various items in the product line in regional or field warehouses. Inventory positioning has a bearing on facility location decision, and therefore, must be considered in the logistics strategy. 2. Future Demand – The activity of estimating the quantity of a product or service that consumers will purchase. Demand forecasting involves techniques including both informal methods such as educated guesses and quantitative methods such as the use of historical sales data or current data from test markets. Demand forecasting may be used in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market. Based on expected futuristic values. 3. Logistics Coordination – Multi facilities are provided in supply chain process. Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. 4. Global Optimizations – It implies relation between cost and lead time. Global supply chains pose challenges regarding both quantity and value Supply and value chain trends. 5. Resources Allocation – It consist to maximize the profit and minimize the cost. 6. Transportation Cost – Calculate on distance basis. 7. Planning and control – It involve network planning and inventory control. 8. Information flow facility structure – It convey to top-to-bottom as well as bottom-to- top. These trends have many benefits for manufacturers because they make possible larger lot sizes, lower taxes, and better environments (culture, infrastructure, special tax zones, sophisticated OEM) for their products. Meanwhile, on top of the problems recognized in supply chain management, there will be many more challenges when the scope of supply chains is global. This is because with a supply chain of a larger scope, the lead time is much longer. Furthermore, there are more issues involved such as multi-currencies, different policies and different laws. 5
  6. 6. Comparison related Questions: (Store-keepers’ Point of view) 1. Where are you purchased the product? 2. Where do you sell your products? 3. How much you earn turnover(in a year) or total sales (in a month) 4. How many distribution centres are? 5. How many suppliers are? 6. How many warehouses do you have? Or you possess any warehouse? 7. How you measure the quality of the product? 8. How many intermediaries (agents) are in your business? 9. Do you export or import the product? And where? 10. Directly deal with the customers or wholesalers or sell the product directly to the customer or there is any retailer to whom you sell the product? 11. Lead time of the product? 12. Order time and the seasonal growth of the product (specific demand of the product during season)? 6
  7. 7. Comparison between Retail store and Local store: Basis of Difference Levis’ Store’s supply Chain Local Store’s Supply Chain Lead Time 4-5 days 1 day Turnover $1.57 million (overall) 1– 1.5 lakh Demand Forecasting Survey Based Depends on product selling Highly Demanded Denim Jeans Product Low Demanded Product Accessories Shirts Supply Chain 1 level 1 level & 2 level Export Sri-Lanka, China No Transportation Cost No Bear by Retailer Warehouse Jhotwara Depending on future demand Information Flow R S.O. M A) R M R = Retailer B) R A M S.O. = Senior Officer M = Manufacturer Minimum Charges Stat with Rs. 2000 Start with Rs. 300 Supplier Directly from the Bombay, Kanpur, delhi manufacturer No. Of supplier 1 4 Quantity Decided on demand Decided on selling of the forecasting basis product Transportation mode Trucks Tempo used by the retailer Order quantity Bulk Small Order frequency Regular in 4-5 days When there is demand they order the product Inventory Management Bills No records maintained Packaging Container Small packets Contact Sagar Sharma (0141- Ravi Agarwal (9001000366) 5100783) 7
  8. 8. Similarities in both type of store: 1. No Home Delivery: There is not any kind of home delivery system, neither in retail store nor in local store 2. Followed Push Strategy: Both the stores follow the push strategy to attract customer by modified product, innovative product or diversification strategy. 3. Nature of Business: Business-to-Business 4. No Import Requirement: both of the stores are not involve in importing of products. 8
  9. 9. Analysis of Comparison: 1. The study reveals that the retailer purchases products from both manufacturer, and agents. If the retailer purchases the product from agents then agent charges the commission for his services, and profit margin of the retailer may goes down. But in case of company owned (branded showrooms) outlet “levies” they have their own manufacturing houses, so need to pay to the agents. 2. The retailers have the warehouse near to their shop, so whenever they need the product they take it from there and sell to the customer. On the other hand Levis has its warehouse in Jhotwara, Jaipur. Which is far more than the company outlet in GAURV TOWER, so when they need product they have to bear the transportation charges? 3. The retailers estimate the demand on the basis of selling of the product but Levis use survey technique to know the people interest, fashion, and their needs. 4. Retailer has the manufacturer not very far from their shop, so the lead time is only maximum 1 day. But in case of Levis the manufacturer is in Bangalore, and lead time is 4 – 5 days, so customers have to wait for their particular choice of product. So customer comes to the branded showroom to purchase products, because it becomes a status symbol. But in India there are people who don’t want to spend more, so they go to the small retailers to purchase. Only the people who are brand conscious are purchasing the things from these company outlets. 9
  10. 10. Recommendations:  Levis should have warehouse near to the company outlet, so when there is any need, they can bring the product, and transportation cost also reduced.  Local store should provide best quality products  levis store should reduce the lead time to increase the salesLearning from the Project:  This project helps in understanding of components of supply chain management  Helps to understand the operation included in supply chain management  This project also helps to understand about the sequencing of activities and product and information flow.  The local retail store mainly work on consumer trust and the Levis make customer satisfied through their services. So there is difference in their strategies. If local retailer provide good services to the customer with better quality their profit and sales will increase 10

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