Comparision of traditional outlet with retailoutlet Introduction of Raymond Outlet Raymond is amongst the first three fully integrated manufacturers in the business of Trusted suiting in the world. It is recognized as the most respected textile Company of India. As the flag-bearer of the multi-product, multi-divisional Raymond Group, it enjoys over 60% share of Indian Trusted Suiting Market. Manufacturing facilities include three world-class fully integrated plants in India. Products are distributed through about 300 exclusive retail shops in India and surrounding countries, 30,000 multi-brand retail outlets and over 100wholesale distributors. In addition to Middle East and SAARC countries, its products are sold to discerning customers in over 60 countries including premium fashion labels all over the world.
Introduction of Traditional Outlet Issar Textiles and Mangal Textiles Issar Textiles and Mangal Textiles are two local traditional outlets situated in the local market at Jaipur. Both these outlets are Multibrand stores. They sell the unstitched suit length and shirtings of fabric only and not the readymade one. Various types of fabrics with different qualities are available for sale at these outlets like linings, checks and plain etc. Like these there are many individual traditional outlets are running in the local market in city.
SUPPLY CHAIN OPERATIONSRaymond OutletRaw Material Textile Plant Apparel Plant Retail Store Customers
Issar Textiles and Mangal TextilesManufacturer(Meal) Distributors Wholesaler Retail Store Customers
COMPARATIVE STUDY Traditional Outlet V/S Retail Outlet: Retail Outlet Has Good Supply Chain Management Instead Of Traditional Outlet. If we compare these two outlets then we find various differences. Firstly we find that there supply chain is fast and effective in comparisons to traditional stores. Prices are offered by the retail outlets are having fixed pricing strategy whereas traditional stores can offer bargaining to there customer and special offers are not provided by these stores but retail stores provide discounts etc on special occasions. Raymond is dealing in brand like Raymond with various design, but traditional stores offering local as well as branded products. Products are limited in retail outlets and offering various kinds of projects in traditional stores. Warehousing facility is available and sufficient in retail stores but there warehouse is their own house. Transportation cost is high and using container for transportation but traditional stores are using trucks for transportation. Their supply chain is company to company by Raymond but distributed and middlemen is used in traditional store. Target customer in retail store is top- middle class but in traditional stores economic group and middle-lower are targeted. Retail stores plays orders through internet but in traditional stores in local medium.
ANALYSIS AND RESULTSFrom The Comparative Study Of Traditional Outlet And Retail Outletconcluded that Raymond Retail Outlet Is Much More Effective Thenthe two Traditional Outlet on the basis of following points: No involvement of any intermediaries in supply chain of Raymond (company to company outlets) They have own logistics team Due to this they have transportation cost advantage. But in case of traditional outlets due to number of middlemen involvement in between them cost becomes high for transportation (manufacturing, distribution, wholesaler and customer). At every stage cost is added in transportations so it is not cost effective and it takes more time to deliver a product to ultimate customer(one place to another). Raymond is known for its brand image among customer and for their good quality products but in case of traditional outlets low quality or local quality product are available and they are not much concern about the quality of the product.
RECOMMENDATIONS As there are many intermediaries involved in the supply chain of traditional outlets. They are not using resources effectively and due to this they are incurring high transportation costs. So we suggest that their should b limited number of intermediaries because it is necessary to reduce cost and time. Customer demand can be fulfill on time and demand can be forecast easily by the storekeeper. Traditional outlets should forecast the demand on time with suitability and there should be some specific and strong base for forecasting demand so as to reduce the wastage of stock and timely availability of products. In traditional stores, flow of information is slow because they are not using internet and latest technology and techniques for information sharing about products. So, they should have proper server system for that to improve the system.
LEARNINGSo Traditional Outlets Are Having Low And Slow Supply Chain Then Retail Outlet.o Traditional Outlet Are Having More Cost And Time Then Retail Outlet. If we discuss various questions we conclude that whether it is a retail store or traditional store, they supply chain plays a vital role. They managed the supply chain by handling carrying and storage cost. They order the order on some specific basis, may be its their past records or their demand by customer. In retail outlets the sales person are educated and well behaved. They take your order and offer various services like tea, coffee etc. They are well dressed and well trained and handled the customer with an appropriate manner. They uses recourses on some definite manners and according to the need. They deals with the customer in face to face manner and its an company outlets so every delivery of products are always on time. Quality is major factor of attractiveness of customer.
Generally they forecast the demand on seasonal basis. They check their books of records and on the basis of that they estimated the demand. If we talk about the traditional stores , they are not that much concern about the customer compare to the retail outlets. They are just offerings products of local quality and local brands. They just offering which a middle-lower class people want. Their supply chain is very long. They include manufacturer, wholesaler, distribute and retailers which is very long process and consume more time and cost. Between that if any loss of good is occurs in transit then it is responsibility of the transporter to bear the loss. From passing through these long distance, it takes more time and cost and sometimes delay in demand fulfillment. Quality controller is also not there to support to traditional stores.