This document discusses supply chain management in retailing. It covers topics like integrated supply chain management, retail automation, and efficient planning. An integrated supply chain manages the end-to-end process from inventory planning to delivery to customers. Retail automation uses technologies like barcodes, RFID, and CRM to improve store operations and customer experience. The goal is an efficient supply chain that meets customer demand through tools like ECR and CPFR.

1. Supply Chain Management in-
RETAILING
BY- MEHUL GALHOTRA

2. Topics
I. Integrated SCM
II. Retail Automation

3. SCM
•End-to-End Process in merchandise planning and
movement- From planning the inventory(preparing the
purchase order) to the point of reaching the merchandise to
the customers.

4. Integrated Supply Chain
•The end-to-end integration of all the supply chain elements
and functions are achieved by applying Interlinked packages
for perfect information management.
•It starts from the design stage at the vendor level to the
time when there is consumer response at the retail stage.

5. Efficient Planning
•It enables the retail organisation to achieve its strategies
and benchmarked standards of customer delivery(ies), at
the same time reducing supply chain expenses.

6. Pre-Purchase order(PPO) &
Purchase Order(PO)
•The PPO is an instrument through which the tentative plan
of order placement to the vendor is done for the whole
season as soon as the inventory planning is completed.
•The PO is the confirmed order for supply.

7. Benefits of- Integrated SCM
•To achieve the best delivery performance
•Reduction in inventory
•Faster fulfilment of cycle time
•Accuracy in forecasts
•Lower supply chain cost
•Improvement in overall productivity
•Improvement in capacity utilization

8. Efficient Vendor Management
•Selecting the right vendors capable of giving the right
quality and quantity of merchandise and meeting delivery
deadlines and retailer can get the right HIT RATIO.
•The right “HIT RATIO” measures the gap between delivery
and purchase orders & helps eliminate backlog in deliveries.
•Vendor Manager Inventories(VMI).

9. Electronic Data Interchange(EDI)
•Helps in establishing an efficient information flow on stock
movement
•The vendors get to know of sales and inventories
instantaneously.
•Reorder supplies are immediately planned and executed by
the vendors.
•Eliminates the time taken to exchange document for placing
orders.

10. Warehouse Management
•The retail warehouse or the distribution centre(DC)
performs the functions of receiving the ordered stocks.
•Checking the right quality, quantity and price.
•Temporary storing & docking.
•Tagging the merchandise with both the MRP & Security
Tags.
•Preparing & Readying the merchandise.

11. Contd.
•Transporting the merchandise.
•Receiving goods returned from the retail stores.
•Sending returned merchandise to vendors back as returns
or for refinishing

12. Goods Received Note(GRN)
•Prepared when merchandise received at the warehouse
from suppliers/vendors is checked & matched with the PO
after certifying all the elements of quality, quantity etc.
•The GRN is then automatically recognised by the system
after authorization for payment to the vendor by the a/c
dept.

13. Inter-Transfer Note(ITN) & ITN Out
•Made when the prepared & readied merchandise is
supplied to the retail stores.
•The reverse ITN(ITN Out) is prepared when goods are sent
back to the warehouse by the retail stores.

14. Retail SCP Model

15. Efficient Consumer Response(ECR)
•Demand driven replenishment system designed to link all
parties in the logistics channel to create a massive flow-
through distribution network.
•Elicits the greatest response from the consumers since it
addresses their needs appropriately.

16. CPFR
•The objective of CPFR is to reduce inventories for the
retailer and at the same time fulfill customer demand on
time.
•Links sales and merchandise planning to the whole supply
chain process to completely avoids the stock-out situations
by keeping the right stocks at the right time.

17. RETAIL AUTOMATION

18. Point Of Sale Technology(POS)
•Simplified customer check-out process.
•Customer convenience, business viability-Major factors
driving technology in Retail.
•Example- Amazon Go

19. Store Operating Processes
•Barcode
•RFID
•EDI
•UPC (Universal Product Code)
•Planograms

20. CRM
•Allows retailer to identify which customer purchased what
items and when.
•Produce a list of all customers according to what they spent
in past year, number of times he/she shopped during a
specific time-frame and so on.
•Allows retailers to track customers & their purchase
behaviour, thus allowing communication & promotions to
be planned.

21. Merchandise & SCM Systems
•Allows retailers to draw up store merchandise & supply
plans and monitor performance.
•Automatically calculates Re-order requirements & creates
purchase orders.
•Purchase orders may be suggested manually(the system
helps review them before communicating them to vendors),
or automatically communicated to the vendors.

22. Price & Promotion Management
•Price management allows the retail back-end system to
mark down prices for group of items, based on select
criteria- for example, all items related to a specific season.
•Promotion management allows retailers to plan
promotional events, which may include temporary price
changes.
•The application tracks the performance of the promoted
items during the event for future decisions.

23. Management Information System(MIS)
•Allows retailers to manage the operation more efficiently,
such as how sales in a category match up to the plan.