Sears implemented new logistics management practices in the 1990s to improve efficiency and compete with rivals like Walmart. They developed four independent logistics channels and used military-inspired practices like cross-docking, the "three ups and three downs" rule, and mobile wireless systems. Sears also collaborated with vendors through initiatives like Collaborative Planning, Forecasting and Replenishment to better forecast demand and replenish inventory. These changes helped Sears revamp their logistics system and reduce costs.

1. Sears Logistics
Management Practices
BY
Mohammed Irfan
Sai Krishna
M Hareesh babu
Srinvas Gosula

2. INTRODUCTION
• Sears, Roebuck & Co. was founded by Richard Sears in 1886.
• Initially Richard started a R.W. Sears watch company.
• Appointing Alvah C Roebuck as a partner – renamed the
company as SEARS,ROEBUCK AND COMPANY.
• Later on increased their business with Catalog of different
products
• Initially they followed mail order Delivery.
• By constructing 40-acre, $5 million mail order plant.

3. Retail stores
• They Started opening retail stores to compete with chain stores in US
• By 1927 they had 27 retail stores.
• Later the company launched additional catalog program-
• “The independent catalog program merchant program”
• By 1930’s
-The number of retail stores carrying sears products were 400
- sears forward integration stores were around 600

4. Geographical coverage of stores
US
Central and south America.
Europe
Canada
COMPETITORS
Wal-Mart
Kmart

5. COMPETE WITH RIVALS.
“Store of the future” program- Renovating 600 stores to offer
a more comprehensive collection of merchandise.
“New pricing Strategy”- they shutdown 824 stores for 2days and
cut down the price to 50% for more than 50,000 items
-to compete more effectively with its rivals.

6. REVAMPING THE LOGISTICS MANAGEMENT
SYSTEM
full line
store
logistics
Off-mall
logistics
Specialized
channel
Direct
delivery
Sears’s store
Sears business
customers
Retail Consumers
Pagonis( Executive vice president of Logistics) implemented a
set of military logistics practices at sears.
Implementing four unique independent logistics channel

7. “Three ups and three Downs” Rule
This rule is used in military.
According to this rule every week executives had to list
three positive things that happened during the course of
project or within the group and three negatives.
By which the negative information can flow to the top
executives so, that they can take corrective steps to rectify
the problems.

8. Cross- Docking
• This was the method followed in order to make the logistics system
more efficient in terms of merchandising division.
It works :
1. sears place a purchase order to vendor using Electronic Data
Interchange(EDI)
2. After fulfilling the order vendor forward an electronic Advance
shipment Notice(ASN) to Sears.
3. The vendor ships the goods.
4. On the arrival of Goods at the Distribution Center, the bar-codes
labels were thoroughly inspected and Receipts were generated.
5. later cross checked through the ASN file
By this process Goods were dispatched in short time

9. USING TOOLS AND INTERNET TO MANAGE
LOGISTICS
Electronics Ordering System.
Strategic Performance Reporting System (SPRS)
Global Information System Technology (GIS)
Enhanced Home Delivery System
Voice Response Unit (VRU)
Sophisticated Logistics Algorithm System (SLAS)
Operational Contingency Cell (OCC)

10. USING MOBILE SYSTEMS TO MANAGE
LOGISTICS
• Sears had 7 RRCs, which supplied replenishment to more than 870
retail stores in US.
• One RRC controlled more than 25,000 pallets in a single day.
• Wireless Mobile Systems(WMS) installed in the RRC scanners, the
network link between the server and hand-held devices
• System-related errors were eliminated, productivity increased by 30%
• Later 7 RRCs controlled 250,000 trailer loads of goods and reduced
paper work significantly

11. IMPLEMENTING CPFR
• Stands for Collaborative Planning, Forecasting and Replenishment
(CPFR).
( SEARS Michelin – Tire manufacturer )
• Four Stages of CPFR
1. Cross Functional teams of both companies work
2. IT divisions of both companies track product information flow.
3. Two sides collaborated in selling only private label tires.
4. Companies broadened CPFR implementation to accommodate
the complete range of products