PRESENTED BY:- Sunil Giri & Shiv Shankar PRESENTED TO:- Prof:- Arpita Shrivastav SUPPLY CHAIN MANAGEMENT IN  RETAIL
Content <ul><li>Objective. </li></ul><ul><li>Definition of SCM. </li></ul><ul><li>Why SCM is critical factor in Retail. </...
11/12/09 Objective of a SCM <ul><li>Maximize profit. </li></ul><ul><li>Manage Product, Information and Fund flow. </li></u...
PRESNTATION BY:- SUNIL & SHIV SHANKAR
PRESNTATION BY:- SUNIL & SHIV SHANKAR
PRESNTATION BY:- SUNIL & SHIV SHANKAR
11/12/09 Supply channels <ul><li>It is the total process by which product reach the end consumer. </li></ul><ul><li>By thi...
Types of Supply Chain <ul><li>Global Supply chain. </li></ul><ul><li>Pull based supply chain. </li></ul><ul><li>Push based...
PRESNTATION BY:- SUNIL & SHIV SHANKAR DENIM JEANS EXAMPLE DENIM JEANS EXAMPLE
Global SCM Factors <ul><li>Managing extensive global supply chains introduces many complications </li></ul><ul><ul><li>Geo...
PRESNTATION BY:- SUNIL & SHIV SHANKAR
PRESNTATION BY:- SUNIL & SHIV SHANKAR
11/12/09 Push based supply chain system . Demand forecasting Order Placed to supplier Placed in shelf for customer Goods s...
PRESNTATION BY:- SUNIL & SHIV SHANKAR
Factors driving changes in SCM <ul><li>Greater choice of what & where to buy, leading to a fragmented market.  </li></ul><...
Integrated Supply chain <ul><li>It is integration of all supply chain elements and functions  are achieved by applying int...
<ul><li>Manufacturer’s Goals </li></ul><ul><ul><li>#Reduce costs </li></ul></ul><ul><ul><li>#Reduce duplication of effort ...
<ul><li>Coordinated workflow, production and operations, procurement </li></ul><ul><ul><li>Production efficiencies </li></...
<ul><li>Achieving of best delivery  performance . </li></ul><ul><li>Reduction in inventory. </li></ul><ul><li>Faster fulfi...
Supply Chain Processes PRESNTATION BY:- SUNIL & SHIV SHANKAR
Suppliers <ul><li>Plays important role in the supply chain. </li></ul><ul><li>for Eg:- Mc –Donald. </li></ul>PRESNTATION B...
Bullwhip Effect <ul><li>Occurs when slight demand variability is magnified as information moves back upstream </li></ul>PR...
Counteracting the Effect <ul><ul><li>Change the way suppliers forecast product demand by making this information available...
Collaborative Planning, Forecasting, and Replenishment <ul><li># Process for two or more companies in a supply chain to sy...
E-Procurement <ul><li>1:-Direct purchase from suppliers over the  </li></ul><ul><li>Internet </li></ul><ul><li>2:- Product...
Distribution 11/12/09 <ul><li>Encompasses all channels, processes, and functions, including warehousing and transportation...
11/12/09 Distribution Centers and Warehousing <ul><li>DCs are some of the largest business facilities </li></ul><ul><li>Mo...
11/12/09 <ul><li>Highly automated system that runs day-to-day operations of a DC </li></ul><ul><li>Controls product, picki...
PRESNTATION BY:- SUNIL & SHIV SHANKAR 10- Collaborative Logistics and Distribution Outsourcing It create greater economies...
Transportation <ul><li>Rail </li></ul><ul><ul><li>low-value, high-density, bulk products, raw materials, intermodal contai...
Transportation (cont.) <ul><li>Air </li></ul><ul><ul><li>most expensive and fastest, mode of freight transport </li></ul><...
Transportation (cont.) <ul><li>Water </li></ul><ul><ul><li>low-cost shipping mode </li></ul></ul><ul><ul><li>primary means...
Internet Transportation Exchanges <ul><li>Bring together shippers and carriers </li></ul><ul><li>Initial contact, negotiat...
In 1970s, Wal-Mart first used  hub-and-spoke  system. Under the system, goods were centrally ordered, assembled at a massi...
Cross-docking <ul><li>Make distribution process more efficient. </li></ul><ul><li>In this finished goods were directly pic...
Inventory Management <ul><li>IT & communication systems are used effectively to  track sales & merchandise inventories in ...
11/12/09 Using EDI for Procurement The computer systems were connected to suppliers. EDI  enabled the suppliers to downloa...
Inventory Management … <ul><li>Employees at the stores had the “Magic Wand,” a  hand-held computer   which was linked to i...
Voice-based Order Filling (VOF) <ul><li>Used first by Wal–Mart in 1998. </li></ul><ul><li>Person responsible for order pic...
PRESNTATION BY:- SUNIL & SHIV SHANKAR 10- I.T A Supply Chain Enabler PRESNTATION BY:- SUNIL & SHIV SHANKAR <ul><li>Informa...
PRESNTATION BY:- SUNIL & SHIV SHANKAR
RFID PRESNTATION BY:- SUNIL & SHIV SHANKAR
Current Trends in SCM <ul><li>Increased use of electronic marketplace such as </li></ul><ul><ul><li>E-distributors  – inde...
Supply Chain Uncertainty <ul><li>Negative effects of uncertainty </li></ul><ul><ul><li>lateness </li></ul></ul><ul><ul><li...
Supply Chain Measurements <ul><li>Measuring supply chain performance </li></ul><ul><ul><li>Traditional measures include; <...
Key Performance Indicators: Example <ul><li>Cost of goods sold: $425 million </li></ul><ul><li>Production materials and pa...
TANISHQ <ul><li>Division of Titan industries ltd. </li></ul><ul><li>It is India’s only fine jewellery brand with a nationa...
Challenges for Tanishq <ul><li>Reducing cycle time. </li></ul><ul><li>Increasing efficiencies  </li></ul><ul><li>Reducing ...
<ul><li>New system had provided details about goods dispatched from the factory to CFA and to the boutiques. </li></ul><ul...
Intending <ul><li>Ordering of goods is automated. </li></ul><ul><li>Stores can refer to online product catalogues and pric...
Order status <ul><li>Help to know about the order placed by boutiques. </li></ul><ul><li>This is made possible by daily sy...
<ul><li>Now sales information flows from software visibility os sales from each boutique is improved. </li></ul><ul><li>Ma...
Communication and exception reporting <ul><li>Communication transfer is made better. </li></ul><ul><li>Information about t...
Mc Donald Supply Chain <ul><li>Mc Donald product are economic because of there best supply chain & location </li></ul><ul>...
<ul><li>It had developed good SCM with over of time. </li></ul><ul><li>Have better SCM hen other food chain such as Kentuc...
Continue…. <ul><li>Quality assurance :-  To maintain consistency & quality of it’s products, Mc Donald’s ships all the raw...
Vital links in Cold chain. <ul><li>Supplier’s have to maintain standards of Mc Donald. </li></ul><ul><li>As ingredients mo...
Relationship with the suppliers <ul><li>To maintain good relation suppliers are given opportunity to expand their business...
<ul><li># Vista processed foods Pvt. Ltd of chicken & vegetable. </li></ul><ul><li>1:- Separate processing lines for chick...
Special vegetarian eggless souce (from MNS Bector specialiyt foods ,Phillacer Punjab. Buns (shan bector & sons, Khopli,Mah...
<ul><li># Amrit Food supplier of long life UHT milk & milk products for frozen desserts. </li></ul><ul><li>1:- Fully autom...
Summary <ul><li>Supply chain management is the heart of retail operations  </li></ul><ul><li>It reduces cycle times & spee...
Continue…. <ul><li>A planned and documented process flow will ensures efficiency in the supply chain . </li></ul><ul><li>P...
11/12/09 THANK  YOU
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  1. 1. PRESENTED BY:- Sunil Giri & Shiv Shankar PRESENTED TO:- Prof:- Arpita Shrivastav SUPPLY CHAIN MANAGEMENT IN RETAIL
  2. 2. Content <ul><li>Objective. </li></ul><ul><li>Definition of SCM. </li></ul><ul><li>Why SCM is critical factor in Retail. </li></ul><ul><li>Changing consumer requirements. </li></ul><ul><li>Supply channels & there types. </li></ul><ul><li>Traditional V/S New supply chain. </li></ul><ul><li>Factors driving changes in SCM. </li></ul><ul><li>Integrated Supply chain. </li></ul><ul><li>Supply Chain Processes. </li></ul><ul><li>SCM Software. </li></ul><ul><li>Supply Chain Measurements. </li></ul><ul><li>Tanishq & Mc-Donald Supply chain. </li></ul>
  3. 3. 11/12/09 Objective of a SCM <ul><li>Maximize profit. </li></ul><ul><li>Manage Product, Information and Fund flow. </li></ul><ul><li>Minimizing uncertainty. </li></ul><ul><li>Reducing lead times. </li></ul><ul><li>Minimizing the number of stages. </li></ul><ul><li>Improving process quality. </li></ul><ul><li>Managing demand. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR It was coined by Keith Oliver in 1982.
  4. 4. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  5. 5. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  6. 6. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  7. 7. 11/12/09 Supply channels <ul><li>It is the total process by which product reach the end consumer. </li></ul><ul><li>By this we can do following things:- </li></ul><ul><li># Reduce inventory & storage investment in the chain. </li></ul><ul><li># Improved end user & customer service benefits through productivity & effectiveness faster order cycle time. </li></ul><ul><li>Develop strong relational links & strong chain for competitive advantage. </li></ul><ul><li>Lower procurement , transportation & unit costs which can be used to price more competitively & to increase value added benefits. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  8. 8. Types of Supply Chain <ul><li>Global Supply chain. </li></ul><ul><li>Pull based supply chain. </li></ul><ul><li>Push based supply chain. </li></ul><ul><li>Farm to fork model based supply chain. </li></ul>11/12/09 Presentation by:- Sunil & Shiv shankar
  9. 9. PRESNTATION BY:- SUNIL & SHIV SHANKAR DENIM JEANS EXAMPLE DENIM JEANS EXAMPLE
  10. 10. Global SCM Factors <ul><li>Managing extensive global supply chains introduces many complications </li></ul><ul><ul><li>Geographically dispersed members - increase replenishment transit times and inventory investment </li></ul></ul><ul><ul><li>Forecasting accuracy - complicated by longer lead times and different operating practices </li></ul></ul><ul><ul><li>Exchange rates - fluctuate, inflation can be high </li></ul></ul><ul><ul><li>Infrastructure issues - like transportation, communication, lack of skilled labor, & scarce local material supplies </li></ul></ul><ul><ul><li>Product proliferation - created by the need to customize products for each market </li></ul></ul>
  11. 11. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  12. 12. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  13. 13. 11/12/09 Push based supply chain system . Demand forecasting Order Placed to supplier Placed in shelf for customer Goods sold Goods not sold retailer bear the loss PRESNTATION BY:- SUNIL & SHIV SHANKAR
  14. 14. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  15. 15. Factors driving changes in SCM <ul><li>Greater choice of what & where to buy, leading to a fragmented market. </li></ul><ul><li>Margin erosion. </li></ul><ul><li>Longer supply chains as a result of worldwide sourcing . </li></ul><ul><li>Expanding product ranges . </li></ul><ul><li>Globalization of the retail industry. </li></ul><ul><li>Adoption of new product categories by industry market leaders. </li></ul><ul><li>Need for real-time visibility . </li></ul><ul><li>Entry into new markets. </li></ul><ul><li>Growth in multichannel sales . </li></ul><ul><li>Legislation (such as the Directive on Waste, Electrical and Electronic Equipment in Europe) . </li></ul><ul><li>Transportation (fuel costs, shortage of drivers) • </li></ul><ul><li>Creation of larger, collaborative supply chain. </li></ul><ul><li>JIT. </li></ul><ul><li>Globalization. </li></ul><ul><li>Shorter product life cycle. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  16. 16. Integrated Supply chain <ul><li>It is integration of all supply chain elements and functions are achieved by applying interlinked packages for perfect information management. </li></ul><ul><li>It starts from the design stage at the vendor level to the time when there is consumer response at the retail stage . </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  17. 17. <ul><li>Manufacturer’s Goals </li></ul><ul><ul><li>#Reduce costs </li></ul></ul><ul><ul><li>#Reduce duplication of effort </li></ul></ul><ul><ul><li>#Improve quality </li></ul></ul><ul><ul><li>#Reduce lead time </li></ul></ul><ul><ul><li>#Implement cost reduction program </li></ul></ul><ul><ul><li>#Involve suppliers early </li></ul></ul><ul><ul><li>#Reduce time to market </li></ul></ul>11/12/09 <ul><li>Supplier’s Goals </li></ul><ul><ul><li>#Increase sales volume </li></ul></ul><ul><ul><li>#Increase customer loyalty </li></ul></ul><ul><ul><li>#Reduce cost </li></ul></ul><ul><ul><li>#Improve demand data </li></ul></ul><ul><ul><li>#Improve profitability </li></ul></ul>Requirements for integrated SCM <ul><ul><li>Analyzing the whole supply chain. </li></ul></ul><ul><ul><li>Starting by integrating internal functions first ( Processing, purchasing, planning, quality) </li></ul></ul><ul><ul><li>Integrating external suppliers through partnerships. </li></ul></ul>
  18. 18. <ul><li>Coordinated workflow, production and operations, procurement </li></ul><ul><ul><li>Production efficiencies </li></ul></ul><ul><ul><li>Fast response </li></ul></ul><ul><ul><li>Improved service </li></ul></ul><ul><ul><li>Quicker to market </li></ul></ul><ul><li>Adopt new business models and technologies </li></ul><ul><ul><li>Penetration of new markets </li></ul></ul><ul><ul><li>Creation of new products </li></ul></ul><ul><ul><li>Improved efficiency </li></ul></ul><ul><ul><li>Mass customization </li></ul></ul>Supply Chain Integration (cont.)
  19. 19. <ul><li>Achieving of best delivery performance . </li></ul><ul><li>Reduction in inventory. </li></ul><ul><li>Faster fulfillment of cycle time. </li></ul><ul><li>Accuracy in forecasts. </li></ul><ul><li>Lower supply chain costs. </li></ul><ul><li>Improvements in overall productivity . </li></ul><ul><li>Improvements in capacity utilization. </li></ul>Benefits of integration PRESNTATION BY:- SUNIL & SHIV SHANKAR
  20. 20. Supply Chain Processes PRESNTATION BY:- SUNIL & SHIV SHANKAR
  21. 21. Suppliers <ul><li>Plays important role in the supply chain. </li></ul><ul><li>for Eg:- Mc –Donald. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  22. 22. Bullwhip Effect <ul><li>Occurs when slight demand variability is magnified as information moves back upstream </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  23. 23. Counteracting the Effect <ul><ul><li>Change the way suppliers forecast product demand by making this information available at all levels of the supply chain. </li></ul></ul><ul><ul><li>Share real demand information. </li></ul></ul><ul><ul><li>Stabilize pricing </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR 10-
  24. 24. Collaborative Planning, Forecasting, and Replenishment <ul><li># Process for two or more companies in a supply chain to synchronize their demand forecasts into a single plan to meet customer demand </li></ul><ul><li># Parties electronically exchange </li></ul><ul><ul><li>1:-Past sales trends </li></ul></ul><ul><ul><li>2:-Point-of-sale data </li></ul></ul><ul><ul><li>3:-On-hand inventory </li></ul></ul><ul><ul><li>4:-Scheduled promotions </li></ul></ul><ul><ul><li>5:-Forecasts </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  25. 25. E-Procurement <ul><li>1:-Direct purchase from suppliers over the </li></ul><ul><li>Internet </li></ul><ul><li>2:- Products go directly into production </li></ul><ul><li>process </li></ul><ul><li>3:- E-marketplaces </li></ul><ul><ul><li>#web sites where companies and suppliers conduct business-to-business activities </li></ul></ul><ul><li>4:- Reverse auction </li></ul><ul><ul><li>#A company posts orders on the Internet for suppliers to bid on. </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  26. 26. Distribution 11/12/09 <ul><li>Encompasses all channels, processes, and functions, including warehousing and transportation, that a product passes on its way to final customer </li></ul><ul><li>Often called logistics </li></ul><ul><li>Logistics </li></ul><ul><ul><li>Transportation and distribution of goods and services </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  27. 27. 11/12/09 Distribution Centers and Warehousing <ul><li>DCs are some of the largest business facilities </li></ul><ul><li>More frequent orders in smaller quantities is a new trend. </li></ul><ul><li>Automated material handling </li></ul><ul><li>Final assembly and product configuration may be done at the DC </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  28. 28. 11/12/09 <ul><li>Highly automated system that runs day-to-day operations of a DC </li></ul><ul><li>Controls product, picking, packing, and shipping </li></ul><ul><li>Features </li></ul><ul><ul><li>1:- Transportation management </li></ul></ul><ul><ul><li>2:- Order management </li></ul></ul><ul><ul><li>3:- Yard management </li></ul></ul><ul><ul><li>4:- Labor management </li></ul></ul><ul><ul><li>5:- Warehouse optimization </li></ul></ul>Warehouse Management Systems PRESNTATION BY:- SUNIL & SHIV SHANKAR
  29. 29. PRESNTATION BY:- SUNIL & SHIV SHANKAR 10- Collaborative Logistics and Distribution Outsourcing It create greater economies of Scale. Internet-based exchange of data and Information. Significant decrease in inventory levels and more efficient logistics Companies focus on core competencies PRESNTATION BY:- SUNIL & SHIV SHANKAR
  30. 30. Transportation <ul><li>Rail </li></ul><ul><ul><li>low-value, high-density, bulk products, raw materials, intermodal containers </li></ul></ul><ul><ul><li>not as economical for small loads, slower, less flexible than trucking </li></ul></ul><ul><li>Trucking </li></ul><ul><ul><li>main mode of freight transport . </li></ul></ul><ul><ul><li>small loads, point-to-point service, flexible </li></ul></ul><ul><ul><li>More reliable, less damage than rails; more expensive than rails for long distance </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR 10-
  31. 31. Transportation (cont.) <ul><li>Air </li></ul><ul><ul><li>most expensive and fastest, mode of freight transport </li></ul></ul><ul><ul><li>lightweight, small packages </li></ul></ul><ul><ul><li>high-value, perishable and critical goods </li></ul></ul><ul><ul><li>less theft </li></ul></ul><ul><li>Package Delivery </li></ul><ul><ul><li>small packages </li></ul></ul><ul><ul><li>fast and reliable </li></ul></ul><ul><ul><li>increased with e-Business </li></ul></ul><ul><ul><li>primary shipping mode for Internet companies </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR 10-
  32. 32. Transportation (cont.) <ul><li>Water </li></ul><ul><ul><li>low-cost shipping mode </li></ul></ul><ul><ul><li>primary means of international shipping </li></ul></ul><ul><ul><li>waterways </li></ul></ul><ul><ul><li>slowest shipping mode </li></ul></ul><ul><li>Intermodal </li></ul><ul><ul><li>combines several modes of shipping-truck, water and rail </li></ul></ul><ul><ul><li>key component is containers </li></ul></ul><ul><li>Pipeline </li></ul><ul><ul><li>transport oil and products in liquid form </li></ul></ul><ul><ul><li>high capital cost, economical use </li></ul></ul><ul><ul><li>long life and low operating cost </li></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR 10-
  33. 33. Internet Transportation Exchanges <ul><li>Bring together shippers and carriers </li></ul><ul><li>Initial contact, negotiations, auctions. </li></ul><ul><li>Examples </li></ul><ul><ul><li>www.nte.com </li></ul></ul><ul><ul><li>www.freightquote.com </li></ul></ul>
  34. 34. In 1970s, Wal-Mart first used hub-and-spoke system. Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ ( hub ), from where they were dispatched to the individual stores ( spoke ). The hub and spoke system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities & distributing them through its own logistics infrastructure to the retail stores. Hub & Spoke Model PRESNTATION BY:- SUNIL & SHIV SHANKAR
  35. 35. Cross-docking <ul><li>Make distribution process more efficient. </li></ul><ul><li>In this finished goods were directly picked up from the manufacturing plant, sorted out and then directly supplied to the customers. </li></ul><ul><li>This reduces the handling & storage of finished goods, eliminating the role of distribution centers & stores. </li></ul><ul><li>Manufacturer directly forward goods to a place called the “staging area.” </li></ul><ul><li>Goods were packed here according to the orders received from different stores & then directly sent to the respective customers. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  36. 36. Inventory Management <ul><li>IT & communication systems are used effectively to track sales & merchandise inventories in stores. </li></ul><ul><li>When there is large number of stores a good communication system is required. </li></ul><ul><li>New technology should be used such as satellite communication system. </li></ul><ul><li>By this companies were able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, & timely price marking. </li></ul><ul><li>Instead of cutting the inventory across the board,made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most , while reducing the overall inventory levels. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  37. 37. 11/12/09 Using EDI for Procurement The computer systems were connected to suppliers. EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold. On receiving information about the sales of various products, the suppliers shipped the required goods to Wal-Mart’s distribution centers.
  38. 38. Inventory Management … <ul><li>Employees at the stores had the “Magic Wand,” a hand-held computer which was linked to in-store terminals through a radio frequency network. </li></ul><ul><li>These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers . </li></ul><ul><li>The order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system. </li></ul><ul><li>Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  39. 39. Voice-based Order Filling (VOF) <ul><li>Used first by Wal–Mart in 1998. </li></ul><ul><li>Person responsible for order picking was provided with a microphone/speaker headset, connected to the portable system that could be worn on waist belt. </li></ul><ul><li>They were guided by the voice to item locations in the distribution centers. </li></ul><ul><li>It also verified quantities picked, and could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.) </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  40. 40. PRESNTATION BY:- SUNIL & SHIV SHANKAR 10- I.T A Supply Chain Enabler PRESNTATION BY:- SUNIL & SHIV SHANKAR <ul><li>Information links all aspects of supply chain </li></ul><ul><li>E-business </li></ul><ul><ul><li>replacement of physical business processes with electronic ones </li></ul></ul><ul><li>Electronic data interchange (EDI) </li></ul><ul><ul><li>a computer-to-computer exchange of business documents </li></ul></ul><ul><li>Bar code and point-of-sale </li></ul><ul><ul><li>data creates an instantaneous computer record of a sale </li></ul></ul><ul><li>Radio frequency identification (RFID) </li></ul><ul><ul><li>technology can send product data from an item to a reader via radio waves </li></ul></ul><ul><li>Internet </li></ul><ul><ul><li>allows companies to communicate with suppliers, customers, shippers and other businesses around the world, instantaneously </li></ul></ul>
  41. 41. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  42. 42. RFID PRESNTATION BY:- SUNIL & SHIV SHANKAR
  43. 43. Current Trends in SCM <ul><li>Increased use of electronic marketplace such as </li></ul><ul><ul><li>E-distributors – independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases </li></ul></ul><ul><ul><li>E-purchasing – companies that connect on-line suppliers to business who pay fees to join the market, usually for long-term contractual purchasing </li></ul></ul><ul><li>Increased use of electronic marketplace such as </li></ul><ul><ul><li>Value chain management – automation of a firm’s purchasing or selling processes </li></ul></ul><ul><ul><li>Exchanges – marketplace that focuses on spot requirements of large firms in a single industry </li></ul></ul>
  44. 44. Supply Chain Uncertainty <ul><li>Negative effects of uncertainty </li></ul><ul><ul><li>lateness </li></ul></ul><ul><ul><li>incomplete orders </li></ul></ul><ul><li>Factors that contribute to uncertainty </li></ul><ul><ul><li>inaccurate demand forecasting </li></ul></ul><ul><ul><li>long variable lead times </li></ul></ul><ul><ul><li>late deliveries </li></ul></ul><ul><ul><li>incomplete shipments </li></ul></ul><ul><ul><li>price fluctuations and discounts </li></ul></ul><ul><ul><li>inflated orders </li></ul></ul>
  45. 45. Supply Chain Measurements <ul><li>Measuring supply chain performance </li></ul><ul><ul><li>Traditional measures include; </li></ul></ul><ul><ul><ul><li>Return on investment </li></ul></ul></ul><ul><ul><ul><li>Profitability </li></ul></ul></ul><ul><ul><ul><li>Market share </li></ul></ul></ul><ul><ul><ul><li>Revenue growth </li></ul></ul></ul><ul><ul><li>Additional measures </li></ul></ul><ul><ul><ul><li>Customer service levels </li></ul></ul></ul><ul><ul><ul><li>Inventory turns </li></ul></ul></ul><ul><ul><ul><li>Weeks of supply </li></ul></ul></ul><ul><ul><ul><li>Inventory obsolescence </li></ul></ul></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  46. 46. Key Performance Indicators: Example <ul><li>Cost of goods sold: $425 million </li></ul><ul><li>Production materials and parts: $4,629,000 </li></ul><ul><li>Work-in-process: $17,465,000 </li></ul><ul><li>Finished goods: $12,322,000 </li></ul><ul><li>Total average aggregate value of inventory (2+3+4): $34,416,000 </li></ul>Inventory turns = $34,416,000 $425, 000, 000 Days of supply = ($425,000,000)/(365) $34,416,000 = 12.3 = 29.6
  47. 47. TANISHQ <ul><li>Division of Titan industries ltd. </li></ul><ul><li>It is India’s only fine jewellery brand with a national presence. </li></ul><ul><li>Sold exclusively through a company controlled retail chain with over 108 boutique store spread over 61 cities. </li></ul><ul><li>This network is supplied and supported by a network of 32 CFA’s. </li></ul><ul><li>But due to growth complexity they contacted with Wipro InfoTech to help them in this problem. </li></ul><ul><li>They designed a web based soln called GOLDMINE to facilitate the flow of information b/w various distribution entities. </li></ul><ul><li>GOLDMINE offered a platform for sales ,management & factory teams of Tanishq to monitor key activities & parameters along the distribution chain. </li></ul>
  48. 48. Challenges for Tanishq <ul><li>Reducing cycle time. </li></ul><ul><li>Increasing efficiencies </li></ul><ul><li>Reducing costs in the areas of tracking movements of goods and sales </li></ul><ul><li>To know order status, sales visibility ,communication (reports) and exception reporting. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  49. 49. <ul><li>New system had provided details about goods dispatched from the factory to CFA and to the boutiques. </li></ul><ul><li>Helped in tracking of stock return cases from both. </li></ul><ul><li>Helped organization to track goods in transit and monitor loss of goods. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR Goods in transit
  50. 50. Intending <ul><li>Ordering of goods is automated. </li></ul><ul><li>Stores can refer to online product catalogues and price lists before placing orders . </li></ul><ul><li>Help in online intending for replenishment .shop specific indenting as well as customer specific indenting </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  51. 51. Order status <ul><li>Help to know about the order placed by boutiques. </li></ul><ul><li>This is made possible by daily synchronization b/w the oracle system at the factory and web based solution. </li></ul><ul><li>Now boutiques no longer have to send e mails or call up to find out the status of there orders </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  52. 52. <ul><li>Now sales information flows from software visibility os sales from each boutique is improved. </li></ul><ul><li>Management now can track the effectiveness of marketing programs and promotions at boutique level according to category and price brands. </li></ul><ul><li>Best seller information is available on demand </li></ul>Sales visibility PRESNTATION BY:- SUNIL & SHIV SHANKAR
  53. 53. Communication and exception reporting <ul><li>Communication transfer is made better. </li></ul><ul><li>Information about the local gold rates , market information, promotion schemes details and product catalogues are transmitted in real time. </li></ul><ul><li>Company have 40000 product variants so this information is important </li></ul><ul><li>Help to solve queries from customers at boutiques </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  54. 54. Mc Donald Supply Chain <ul><li>Mc Donald product are economic because of there best supply chain & location </li></ul><ul><li>Through it’s unique cold chain Mc Donald is able to cut down operational wastage as well as maintain the freshness and nutritional value of raw material & processed food. </li></ul><ul><li>This involved all SCM activities at controlled temperature. </li></ul>11/12/09
  55. 55. <ul><li>It had developed good SCM with over of time. </li></ul><ul><li>Have better SCM hen other food chain such as Kentucky Fried Chicken. </li></ul><ul><li>Supply chain work had started four year before of its operation in India in 1996. </li></ul><ul><li>They have identified the farmers for there each product & provided them the product specification they will require. </li></ul><ul><li>It have one of the best logistics network which include. </li></ul>Early start to ensure product compliance. PRESNTATION BY:- SUNIL & SHIV SHANKAR
  56. 56. Continue…. <ul><li>Quality assurance :- To maintain consistency & quality of it’s products, Mc Donald’s ships all the raw materials to a cold storage close to the main market. </li></ul><ul><li>Demand based delivery:- based on daily demand the required amount of raw material is transported to individual outlets. </li></ul><ul><li>Centralized warehousing:- Mumbai based Radhakrishna food land Pvt. Ltd is distribution agent it act as a hub for all vendors. From this all the material is transferred to the required places. </li></ul><ul><li>Cold chain maintenance :- The semi finished material is transferred at a particular temperature to ensure freshness & moisture </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  57. 57. Vital links in Cold chain. <ul><li>Supplier’s have to maintain standards of Mc Donald. </li></ul><ul><li>As ingredients moves they are checked by quality inspection program at 20 points. </li></ul><ul><li>This help organization to reduce the operational wastages. </li></ul><ul><li>Focus more on prevention than detection through Hazard Analysis Critical Control Point. </li></ul><ul><li>HACCP is done twice in the year. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  58. 58. Relationship with the suppliers <ul><li>To maintain good relation suppliers are given opportunity to expand their business. </li></ul><ul><li>They were given latest food technology, exposure to advance agriculture practices & ability to grow & expand. </li></ul><ul><li>Some of the suppliers are :- </li></ul><ul><li># Trikaya agriculture supplier of Telangana & Maharashtra. </li></ul><ul><li>1:-A specialized nursery with a team of agriculture </li></ul><ul><li>experts. </li></ul><ul><li>2:- Drip & sprinkler irrigation in raised farm beds with </li></ul><ul><li>fertilizers mixing plant. </li></ul><ul><li>3:- Post harvest facilities such as cold storage. </li></ul><ul><li>4:- Refrigerated trucks for transportation. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  59. 59. <ul><li># Vista processed foods Pvt. Ltd of chicken & vegetable. </li></ul><ul><li>1:- Separate processing lines for chicken & vegetable foods. </li></ul><ul><li>2:- Capability to produce frozen foods at temperature as low </li></ul><ul><li>as 35 degree Celsius to retain total freshness. </li></ul><ul><li>3:- International standards, procedure & support services. </li></ul><ul><li># Dynamix Dairy Supplier of Cheese Maharashtra. </li></ul><ul><li>1:- Fully automatic international standard processing facility. </li></ul><ul><li>2:- Capability to convert milk into cheese , butter/ ghee, skimmed milk powder etc. </li></ul><ul><li>3:- stringent quality control & continuous R&D. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  60. 60. Special vegetarian eggless souce (from MNS Bector specialiyt foods ,Phillacer Punjab. Buns (shan bector & sons, Khopli,Maharastra & Cremica Industries Noida.) Butter & breading (cremica industries Ludhiana Punjab Fresh iceberg lettuce (Trikaya Agri Talegaon Maharastra; Meena Agritech Delhi; ootyfarms,ooty) Cheddar cheese (dynamic dairy Baramati Maharashtra) Vegetable patty :- made from fresh peas ,carrots, green beans,red capsicum,potatoes &rice (vista processed foods Pvt.Ltd . Tajola. Maharashtra)
  61. 61. <ul><li># Amrit Food supplier of long life UHT milk & milk products for frozen desserts. </li></ul><ul><li>1:- Fully automated machinery requiring no human contact with product for total hygiene. </li></ul><ul><li>2:- Installed capacity of 6000 liters/hr for producing homogenized ultra high temperature processed milk & milk products </li></ul>
  62. 62. Summary <ul><li>Supply chain management is the heart of retail operations </li></ul><ul><li>It reduces cycle times & speeds up operations . </li></ul><ul><li>It enables the supply of right merchandise to the end consumer at the right time </li></ul><ul><li>An efficient supply chain management system reduces operations costs. </li></ul><ul><li>Information management is the key to attain efficiency in supply chain management. </li></ul><ul><li>Using the right technology ,information flow will help dynamic decision making across functions </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  63. 63. Continue…. <ul><li>A planned and documented process flow will ensures efficiency in the supply chain . </li></ul><ul><li>Process need to be audited to improve cycle times and attain cost efficiencies </li></ul><ul><li>Innovative and new technologies should be adopted as soon as they are avialable. </li></ul><ul><li>The efficiencies of the entire supply chain process depends on how retailers seek , understand , assimilate and respond to consumer responses. </li></ul><ul><li>Retail automation plays a significant role in ensuring timely operational deliveries and achieving efficiencies. </li></ul>PRESNTATION BY:- SUNIL & SHIV SHANKAR
  64. 64. 11/12/09 THANK YOU

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