1134166 634480387775311250

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pantaloons SCM

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1134166 634480387775311250

  1. 1. SUPPLY CHAIN
  2. 2. INTRODUCTION• PANTALOON RETAIL IS THE FLAGSHIP CO. OF FUTURE GROUP.• IT IS LED BY IT’S FOUNDER AND GROUP CEO,MR. KISHORE BIYANI.• PRIL, IS INDIA’S LEADING RETAILER THAT OPERATES MULTIPLE RETAIL FORMAT IN BOTH THE VALUE AND LIFESTYLE SEGMENT OF THE INDIAN CONSUMER MARKET.• HEADQUATERED IN MUMBAI.• OVER 1000 STORES ACROSS 73 CITIES IN INDIA AND EMPLOYEES OVER 30,000 PEOPLE.• IT REGISTERED A TURNOVER OF 3000 CR FOR FY2009-10.
  3. 3. INTRODUCTION
  4. 4. INTRODUCTION• THE 1ST PANTALOON WAS OPENED IN GARIAHAT IN KOLKATA IN 1997.• INITIALLY POSITIONED AS A FAMILY STORE, IT FINALLY VEERED TOWARDS BECOMING A FASHION STORE WITH AN EMPHASIS ON ‘YOUTH’ AND CLEAR FOCUS ON ‘FRESH FASHION’-AN IDEA THAT HAS CAPTURED THE IMAGINATION OF YOUNG INDIA IS THE TAGLINE OF PANTALOON.• PANTALOONS STORES HAVE A WIDE VARIETY OF CATEGORIES LIKE CASUAL WEAR,ETHNIC WEAR,FORMAL WEAR,PARTY WEAR AND SPORTS WEAR FOR MEN,WOMEN AND KIDS• WATCHES AND SUNGLASSES, FOOTWEAR, HANDBAGS ,PERFUMES, COSMETICS AND FASHION ACCESSORIES.• THE STORE HAS NOW GONE FOR THE ONLINE SHOPPING PORTAL,THE PORTAL HELPS THE CUSTOMER TO SHOP ONLINE AS WELL AS LOCATE THE NEAREST STORE.
  5. 5. • PANTALOON WAS REGULARLY OPENING STORES INWHY AT-ALL THE METROS AND THEIR WAS AN URGENT NEEDSUPPLY CHAIN FOR A RELIABLE ENTERPRISE WIDE APPLICATION TO HELP RUN IT’S BUSINESS EFFECTIVELY.NEEDED FOR • THE BASIC NEED WAS TO HAVE A ROBUST TRANSACTION MANAGEMENT SYSTEM AND SUPPLYPANTALOONS CHAIN MANAGEMENT SYSTEM TO RUN THE OPERATIONS. • IT NEEDS COLABORATION WITH PARTNERS,SOURCING AND PROCUREMENT TO FULLFIL ORDERS . • IT NEEDS COST OPTIMIZATION,QUALITY,SPEED BUYING PLANS,IDEA ABOUT MARKET DEMAND PATTERNS CHANGE. • IT INVOLVES HANDLING THE LOGISTICS OF MOVING FINISHED GOODS FROM THE SOURCE INTO THE STORES;OVERSEEING GLOBAL TRADE AND PROCUREMENT REQUIREMENTS. • SELLING GOODS ACROSS A VARIETY OF CHANNELS TO CUSTOMERS, WHICH REQUIRES MARKETING AND BRAND MANAGEMENT. • CAPTURING CUSTOMER REACTIONS, ANALYSING DATA AND USING IT TO OPTIMISE THE NEXT PHASE OF DESIGN PROCESS. • THE COMPANY WAS LOOKING FOR A SOLUTION THAT WOULD BRING ALL OF ITS BUSINESS AND PROCESS TOGHETHER.
  6. 6. EVOLUTION OF SUPPLY CHAINMANAGEMENT IN PANTALOONS CRITICAL COMPONENT OF SUPPLY CHAIN PLANNING APPLICATION HELPS PANTALOON MEETS RETAILER’S SERVICE LEVELS AND MAINTAIN PROFIT MARGINS. PANTALOON HAS DEVELOPED INNOVATIVE SOLUTIONS LIKE PERFORMANCE MANAGEMENT,FREQUENT SALES OPERATION MANAGEMENT,DEMAND PLANNING,INVENTORY PLANNING, PRODUCTION PLANNING,LEAN SYSTEMS AND STAFF. GOOD SUPPORT FROM MANAGEMENT.
  7. 7. MAJOR STEPS TAKEN AT BEGINNING• USE OF MORE ARGRESIVE EXPAINSION STRATEGY.• IN 2004,PRIL MODIFIED ITS OPERATIONAL PLANNING AND INVENTORY MANAGEMENT.• INCREASE IN OPERATIONAL EFFICIENCY.• STRENGTHENED ITS BACK-END SUPPLY.• INCREASE CHAIN AND SOURCING CAPABILITIES TO REDUCE COST.• IN MAY 2005,PRIL INTRODUCED INFORMATION TECHNOLGY IN SCM.• INVESTED 1 BILLION IN I.T. FOR NEXT 3 YEAR.• RESTRUCTURED WAS MADE IN HARDWARE, SOFTWARE AND BUSINESS CONNECTIVITY.• VIRTUAL PRIVATE NETWORK (VPN) TO HANDLE INHOUSE TRAFFIC OF DATA,VOICE AND VIDEO.• PARTNERSHIP WITH SAP FOR ADVANCED PLANNING TOOLS AND PROVIDING SOFTWARE SOLUTION.• INTRODUCTION OF RFID.
  8. 8. THE MATERIAL FUNCTION• INTRODUCTION OF INFORMATION TECHNOLOGY IN SCM.• THE ADVENT OF MATERIAL REQUIREMENT PLANNING AND MATERIAL RESOURCE PLANNING BOTH HELPS IN INCOMING MATERIALS AND OUTGOING FINISHED GOODS AS A SYSTEM.• USE OF B2B AND E-COMMERCE HELPS IN PROCESSES FOR INDIRECT MATERIAL AND REQUIREMENTS.
  9. 9. PROCUREMENT• IT IS KNOWN AS PURCHASING FROM THE SUPPLIER AT THE LOWEST COST• CENTRAL PROCUREMENT SYSTEM- – EACH REGION HAS A REGIONAL HUB. – UNDER EACH REGIONAL HUB THERE ARE SEVERAL DISTRIBUTION COLLECTION CENTRE. – THE FUNCTION OF EACH DCC IS TO DISTRIBUTE PRODUCT ACROSS PANTALOON RETAIL STORE. – THE TOTAL PRODUCT SELECTION AND DISTRIBUTION IS HANDLED BY THE DCC AND THE STORE MANAGER.
  10. 10. MATERIAL PLANNING• EXTENSIVELY USED FOR FULLFIL THE GAP OF REQUIREMENT.• IT CONNECTS BETWEEN THE SUPPLIER AND DISTRIBUTION NETWORK.• GOOD MATERIAL HANDLING, STORAGE AND MOVEMENT OF GOODS.
  11. 11. INVENTORY MANAGEMENT• IT PROVIDES A BUFFER AGAINST THE DIFFERENCE IN DEMAND RATES AND PRODUCTION RATES.
  12. 12. RECEIVING AND DESPATCHING• IT IS OTHERWISE CALLED IN-BOUND AND OUT-BOUND LOGISTICS.• IT IS IMPORTANT FOR RETAINMENT OF BRAND VALUE, BECAUSE IT IS THE ENTRY AND EXIT POINT.• EVERY STORE HAS A TRAINED SALES-FORCE.THEY INVLOVE IN SELECTION OF MERCHANDISE WHO WERE BEST SUITED FOR THE CUSTOMER.• THEY INVLOVE IN CREATING AWARENESS ABOUT VARIOUS OFFERS.• PANTALOONS PROVIDE CUSTOMER WITH REPURCHASE TRAIL SERVICE.• ALSO FOR POST PURCHASE SERVICE THEY HAVE A PROVISION FOR GIFT PACKING.• THEY GUIDED CUSTOMER THROUGH THE APPROPRIATE CHANNELS TO SOLVE THE PROBLEM.
  13. 13. STORES THE ATMOSPHERE IS A VERY IMPORTANT FACTOR TO INFLUENCE THE PROCESS. DECORATING THE STORES ACCORDING TO THE MOOD OF THE CUSTOMERS,TIME OF THE DAY,FESTIVALS ETC. USE OF GOOGLE LIKE DEVICES TO ASSESS THE MOST ATTRACTIVE POSITIONS FOR PRODUCTS IN THE STORE.
  14. 14. MATERIAL HANDLING• Future logistics now handles 2.5 millions SKU(stock keeping units)a day across the Future Groups various retail formats across the country• The biggest driver in a consumer logistics is going to be zero defect in managing the supply chain• Zero defect can only be achieved through vertical integration across the entire supply chain-from raw material supply, supply, wholesale , retail. The different parts of the supply chain will no longer be able to work in silos
  15. 15. TRANSPORTATION AND LOGISTICS• Future logistics initially aimed at handling the supply chain logistics of the group only. However sensing immense opportunity in this area ,the company is now looking to offer its services to its vendors• The thrust at present will be on modes of surface transport like roads and rail only. However at a latter stage ,sea and air modes might also be considered as per the requirement
  16. 16. RELATIONSHIP WITH SUPPLIER Future group derive significant economics of scale in managing their supply chain. With more then 170000 products, the company maintain a strong supplier relationship in a partnership mode, avoiding the exploitative supply.
  17. 17. IMPACT ON MATERIALS FUNCTION ON• PROFIT• DEVELOPMENT• RELATIONSHIP• MARKETING• QUALITY MANAGEMENT• FINANCE AND ACCOUNTING• INFORMATION TECHNOLOGY
  18. 18. INTEGRATED LOGISTICS MANAGEMENT• Scientific management.• Data processing technology.• Customer satisfaction.
  19. 19. STAGES IN ILM• STAGE1(PHYSICAL DISTRIBUTION)• STAGE2(INTERNAL LINKAGE)• STAGE3(EXTERNAL LINKAGE)
  20. 20. FUTURE OF PANTALOONS• In the fierce of competitive pressure, Pantaloons has recognized the value of building its own stores as brands to communicate quality as well as value for money• They have developed a sustainable competitive advantage by translating core values combining products, image and reputation into a coherent retail brand strategy
  21. 21. CONCLUSSION……• With the generous use of global and local experiences, Indian retailers are going to improve their bottom lines with efficient management of logistics and supply chain• At the same time Indian retailers like future group and reliance retail are also going to show the world how it can be managed in a more innovative and efficient manner
  22. 22. KING OF INDIAN RETAIL THANKYOU

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