The document discusses supply chain management (SCM) in retail. It defines SCM as the flow of goods from raw materials to the end customer, involving manufacturers, suppliers, transporters, warehouses, retailers. The objectives of SCM in retail are to reduce costs, save time, increase customer satisfaction and profit margins. An integrated SCM coordinates activities across the supply chain from suppliers to customers. This improves delivery, reduces inventory and costs, and increases productivity and forecasting accuracy.

1. Supply Chain Management in Retail Submitted By: Uday Mishra GSBA G. Noida [email_address] 9891683518

2. CONTENTS SCM- Concept Cyclic View of SCM Objective of SCM in Retail Need of SCM in Retail Integrated Supply Chain Management & its Benefits Process View of SCM Evolution of SCM Innovation in SCM Functions of Retail Supply Chain Retail Logistics & its Benefits Emerging Concepts of Retail Logistics Food and Grocery Supply Chain Bibliography

3. Concept of SCM Those activities associates with moving goods from the raw materials stage though to the end user. It not only includes the manufacturer and suppliers but also transport, warehouse, retailers and customer also. These all activities are monitor by the information system.

4. Module 1:Supply Chain Management Cycle I Cycle II Cycle III Cycle IV Customer Distributor Manufacturer Supplier Retailer Procurement Customer Order Manufacturing Replenishment

5. Objective of SCM in Retail

6. Example of Supply Chain in Retail Information Flow Raw Materials RETAILER FACTORY DISTRIBUTOR WHOLE SELLER SUPPLIER Finished Goods

7. Need of SCM in Retail Cost Cutting Time Saving Customer Satisfaction Increase Profit Margins

8. Need of SCM in Retail Physical Flows Information Flows Financial Flows

9. Integrated Supply Chain Management SCM is an integrated process where every activity is interrelated with the system for efficient flow of material from supplier to the end users. Supplier Manufacturer Distributor Retailer Customer

10. Benefits of Integrated Supply Chain Achieving the best delivery performance. Reduction in inventory Lower supply chain cost Improvement in overall productivity Accuracy in forecast

11. Module 1:Supply Chain Management Concept of supply chain could be thought of as a loop SCM starts with the customer and ends with the customer Customer could be an internal customer or an external customer

12. Module 1:Supply Chain Management A push-based SCM takes longer to react to the changing market place In a push-based supply chain, production decisions are usually based on long-term forecasts In push-based strategies, SCM experience increased transportation costs, high inventory levels and high manufacturing costs In a pull-based supply chain, manufacturing is demand driven so that it is coordinated with actual external customer demand rather than a forecast Push View of SCM Pull View of SCM Lead-time reduction occurs as the variabilities are better monitored in pull-based SCM Pull-based systems are often difficult to implement when lead times are so long that it is impractical to react to demand information

13. Conventional Approach Modern Approach Module 1:Supply Chain Management

14. Conventional Approach Sales & Distribution (Demand) Manufacturing (Capacity) Procurement (Material) C U S T O M E R Optimize to Mfg objectives Optimize to Logistics obj Optimize to Sales & Mktg obj

15. Modern Approach Just In Time (JIT) Inventory Management Model Total Quality Management (TQM) Model Efficient Consumer Response (Ecr) Working Group.

16. Innovation in SCM Vendor managed inventory Collaborative planning forecasting and replenishment. Cross docking

17. Functions of Retail Supply Chain Physically movement of goods from one outlet to another. Stocking the good at the outlets where needed. Management of the entire process.

18. Retail Logistics Retail logistics is the organized process of managing the flow of merchandise from the source of supply to customer. The main objective of logistics management is to reduce the inventory – holding cost and improve profits

19. Benefits of Retail Logistics

20. New Emerging Concepts of Logistics Third party logistics Supply of logistics related operations b/w traders by an independent organizations. ex- Federal Express, DHL, Maersk Logistics.

21. Contd…. Fourth Party Logistics It refers to the evolution in logistics from suppliers focused on ware housing and transportation to suppliers offering a more integrated solution

22. Contd… Reverse Logistics Process of moving goods from their typical final destination, for the purpose of capturing the value or proper disposal . Stands for all operations related to the re use of products & materials

24. Video Example Fresh-O-Mart Supply Chain

25. Conclusion A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products and the distribution of these products to the customers.

26. Bibliography Reference Books : Swapna Pradhan Levy & Weitz Gibson G. Vedamani Gilbert Magazines : The Franchising World Mastermind Internet : i2solutions.net Google.com Wikipedia.com