A retail chain differs from other industries by nature of its number oflocations. A conventionalmanufacturing industry has a production at a limited number of locationsand sales beinghandled from a few more. However, a retail industry has sales from a largenumber oflocations. If it is in the food and beverage business, you could say that itsproduction is alsobeing done at all locations. This means that material handling, production,sales anddistribution as well as finance transactions are being conducted at all theirstores. Each storerequires an inventory control system, a Point of Sales system and anaccounting system(maybe also a production system)
selling goods or services to the final consumers for personal , non-business use. retail management is the sale by seller in small quantities to customer not for resale I prefer to understand
storing the goods and providing us with an assortment of products. By being available at a convenient location , he creates place utility.Finally, when the product is sold, ownership utilityis created..
Modern supply chain management retail is based onthe following concepts: Vendor Managed Inventory (VMI) Efficient Consumer Response (ECR) Collaborative Planning, Forecasting and Replenishment (CPFR) Electronic marketplaces Radio frequency Identification Detection (RFID)
Vendor Managed Inventory (VMI)MI is a continuous replenishment program in which the retailerprovides the supplier with detailed information to allow thesupplier to manage and replenish product at the store orwarehouse level – Benefits of VMI • Solidified customer-vendor relationships • Reduced shipping costs and lead time • Fewer human errors • Improved service levels
Efficient Consumer Response (ECR) ECR is a grocery industry supply chain management strategy aimed at eliminating inefficiencies, and non-value-added costs, thus delivering better value to the end customers ECR attempts to eliminate inefficiencies by introducing strategic initiatives in four areas: Efficient store assortment Efficient product information Efficient promotion Efficient product replenishment
Efficient Consumer Response (ECR) Programs that companies need to have in place are: Category management (i.e. managing a group of products as strategic business units within each store) Continuous replenishment program (CRP) Further support is needed of the following technologies: Barcodes / Scanners Electronic Data Interchange (EDI) Computer aided ordering (CAO) Cross docking / direct store delivery Activity based costing The main obstacle is not technical but managerial, with managers reluctant to transform their adversarial trading relationships into open partnerships
Collaborative Planning, Forecasting and Replenishment (CPFR)PFR allows cooperation across the supply chain, using a set ofprocesses and technology models.roviding dynamic information sharing and integrating both demand and supply sideprocesses, for effectively planning, forecasting and replenishing customer needsthrough the total supply chain.dvantages of CPFR: Increased responsiveness Product availability assurance Optimized inventory and associated costs Increased revenues and earnings – Improved relationships with trading partners
Electronic marketplaces• A distinction can be made between Open exchanges (accessible for everyone) and Private exchanges (only for members)• An e-marketplace can provide a platform for: – Core commerce transactions which can automate and streamline the entire requisition-to-payment online – A collaborative network for production design, supply chain planning, optimization and fulfillment process – Industry wide product information that is aggregated into a common classification and catalogue structure – An environment in which sourcing, negotiations and auctions can take place in real-time – An online community for publishing and exchanging industry news, information and events
Radio frequency Identification Detection• RFID is a term for technologies that use radio waves to automatically identify.• Auto-ID Center is developing an open global network (a layer on top of internet) that can identify anything, anywhere, automatically.• This network will give companies near perfect supply chain visibility• Also, if widely adopted the network could: – eliminate human error from data collection – reduce inventories – keep product in stock – reduce loss and waste – free up staff to perform more value added functions – improve safety and security
Supply chain strategy trends The four major developments show how the landscape of the traditional retail buyer has changed Advanced systems will allow them to optimize their supply chain operations Future competition in retail will no longer be between individual companies, rather it will be among clusters of companies As research shows the development towards this kind of collaboration can be troublesome Trust between the partners, a long term commitment and a balanced sharing of risks and rewards is required to be successful
#1 retailer in India by the early 21st century. Pantaloons, a family departmental store. Pantaloons, which made the store one of the most successful lifestyle stores in India in the early 2000s.Issues:• Recent trends in the Indian retailing industry, changing requirements and
Procurement is a centralised activity at the HO.?Changes in Confirmed Purchase Orders was a regular activity. stores would get stocked out of key ingredients.?HO was unable to receive the Sales figures from all stores in any single day. Some stores would send their figures twice.?The problem was that the amount deposited and the collection figures of the store would rarely, if ever, match.?Recording of Consumption in each store was simply notfeasible.?Price changes and promotional schemes were decided by theHO and the information was sent to the Stores.?
Overview;-Reckoner ERP, eReckoner and eReckoner retail was provided to the client. Reckoner wouldbe used by the HO while eReckoner retail was to be used by theStores, Warehouses and theregional offices.
The stores would conduct daily transaction in eReckoner retail using the in built POSsystem. The Reckoner POS system was an easy to usesimple interface. At the end of the shift,The server would have checks built in to preventthe same data from being uploaded twice.This would also automatically update the stock at the stores for them to know theircurrent stock availability.Vendor deliveries were nowautomatically available to the HO for Bill Passing.Any price changes or promotional schemes decided by the HO would be entered inReckoner.The stores could enter all expense and other financial transactions online ineReckoner.These transactions would be available to the HO so that they could reconcile the cashcollection and expense figures for each store.
Conclusions• The buying function plays a very important role in trade companies.• In retail companies buying policy is much more integrated with sales and marketing policy,• Company policy is primarily focused on improving turnover and margin whilst reducing working capital.• Retail today is a truly international business.• Advanced information systems allow the application of new logistics concepts such as VMI, ECR, CPFR and electronic marketplaces.