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Retail logistics1
The retail supply chain is a large and evolving industry globally and in India. Retail formats have evolved from traditional village markets to modern convenience stores, supermarkets, hypermarkets, and shopping malls. There are over 12 million retail outlets in India, making it one of the most densely populated retail markets. Emerging technologies like RFID and information systems are becoming the backbone of retail supply chain operations by automating processes, increasing visibility and efficiency, and reducing costs. For example, Walmart estimated potential annual savings of $8.35 billion from implementing RFID across its supply chain through benefits like reduced inventory levels, shrinkage, and labor costs.
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Retail logistics1
- 1. Retail Supply ChainRetailSupply Chain A Brief Overview Prof. R. Sathyanarayanan
- 2. Retailing World’slargest private industry - US$ 6.6 trillion sales annually Indian retailing Largest employerafteragriculture - 8%* of population Highest outlet density in world - Around 12 mn outlets Still evolving as an industry - Long way to go Retailing: An overview
- 3. Weekly Markets Village Fairs Melas WeeklyMarkets Village Fairs Melas Convenience Stores Momand Pop/Kiranas Convenience Stores Momand Pop/Kiranas PDS Outlets Khadi Stores Cooperatives PDS Outlets Khadi Stores Cooperatives Exclusive Brand Outlets Hyper/SuperMarkets Department Stores Shopping Malls Exclusive Brand Outlets Hyper/SuperMarkets Department Stores Shopping Malls Traditional/Pervasive Reach Government Supported Historic/Rural Reach Modern Formats/ International Evolution of Indian retail Source of Entertainment Neighborhood Stores/Convenience Availability/Low Costs /Distribution Shopping Experience/Efficiency
- 5. Types of RetailOutlets The emergence of new sectors has been accompanied by changes in existing formats as well as the beginning of new formats: • Hyper marts, typically 8,000 sq.ft and more • Large supermarkets, typically 3,500-5,000 sq. ft. • Mini supermarkets, typically 1,000-2,000 sq. ft. • Convenience stores, typically 750-1,000 sq. ft. • Discount/shopping list grocer
- 9. SUPPLY CHAIN –PUSH vs PULL MODEL
- 10. RETAIL SUPPLY CHAIN –UNCERTAINTY FRAMEWORK
- 11. UNCERTAINTY FRAMEWORK & MATCHIMG SCMSTRATEGIES
- 15. TYPICAL REVERSE LOGISTICSPROCESS IN RETAIL
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- 22. RFID Technology What isRFID ? • Radio Frequency Identification • A micro-chip in a label used to transmit data when the label is exposed to radio waves
- 23. RFID Basics What arethe main components ? • RFID Tags • RFID Reader – Antena and transceiver(reader) • Host Computer • Major players: IBM, Texas Instruments Integrated chip
- 24. RFID in RetailSupply Chain Automate the Supply chain process RFID TAG Reader
- 25. RFID in RetailSupply Chain Benefits at a glance • Decrease in lost stock • Faster locating stock • Lower labour requirement • Reduction of out-of-stock • Low safety stock level
- 26. Retail: Wal-Mart's BusinessCase $180 millionImproved visibility of where products are in the supply chain in Wal-Mart’s DCs and supplier’s warehouses offers reduced inventory and costs of carrying this inventory Product Visibility $300 millionImproved tracking of the more than 1 billion pallets and cases moving through DCs annually Tracking $575 millionReal-time product monitoring reduces warehouse shrink, administrative errors and vendor fraud Shrink $600 millionSmart shelves monitor on-shelf product availabilityOut-of-Stock $6.7 billionEliminating bar code scanning on pallets and cases in the supply chain and on items in-store can reduce labor costs by 15% Scanning Source: eWeek, September 15, 2003 Potential Annual Saving SavingsFunction Execution Savings Total $8.355 Billion
- 27. • Vital toWal-Mart's successful retail model are the tremendous Walmart distribution centers that serve the thousands of stores across the states. Georgia, for example, is home to five Walmart distribution centers-Statesboro, Macon, LaGrange, Monroe, and Douglas. • A typical Walmart distribution center is more than one million square feet, or the equivalent of 10 Wal-Mart retail stores. More than two hundred and fifty dock doors serve the fleet of Walmart distribution center trucks that wait in the vast parking lots surrounding the buildings. The aforementioned LaGrange distribution center, which serves stores in Georgia and Alabama, loads and ships over five hundred tractor-trailers of merchandise a day from the one Walmart distribution center alone. • A majority of the merchandise one sees in a Wal Mart store goes through a Walmart distribution center first. This enormous volume necessitates the twenty-four hour a day, seven day a week schedule.
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