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SUPPLY CHAIN

INTRODUCTION

• PANTALOON RETAIL IS THE FLAGSHIP CO. OF FUTURE

GROUP.

• IT IS LED BY IT’S FOUNDER AND GROUP CEO,MR. KISHORE

BIYANI.

• PRIL, IS INDIA’S LEADING RETAILER THAT OPERATES

MULTIPLE RETAIL FORMAT IN BOTH THE VALUE AND

LIFESTYLE SEGMENT OF THE INDIAN CONSUMER MARKET.

• HEADQUATERED IN MUMBAI.

• OVER 1000 STORES ACROSS 73 CITIES IN INDIA AND

EMPLOYEES OVER 30,000 PEOPLE.

• IT REGISTERED A TURNOVER OF 3000 CR FOR FY2009-10.

INTRODUCTION

INTRODUCTION • THE 1ST PANTALOON WAS OPENED IN GARIAHAT IN KOLKATA

IN 1997.

• INITIALLY POSITIONED AS A FAMILY STORE, IT FINALLY VEERED TOWARDS BECOMING A FASHION STORE WITH AN EMPHASIS ON ‘YOUTH’ AND CLEAR FOCUS ON ‘FRESH FASHION’-AN IDEA THAT HAS CAPTURED THE IMAGINATION OF YOUNG INDIA IS THE TAGLINE OF PANTALOON.

• PANTALOONS STORES HAVE A WIDE VARIETY OF CATEGORIES LIKE CASUAL WEAR,ETHNIC WEAR,FORMAL WEAR,PARTY WEAR AND SPORTS WEAR FOR MEN,WOMEN AND KIDS

• WATCHES AND SUNGLASSES, FOOTWEAR, HANDBAGS ,PERFUMES, COSMETICS AND FASHION ACCESSORIES.

• THE STORE HAS NOW GONE FOR THE ONLINE SHOPPING PORTAL,THE PORTAL HELPS THE CUSTOMER TO SHOP ONLINE AS WELL AS LOCATE THE NEAREST STORE.

WHY AT-ALL

SUPPLY CHAIN

NEEDED FOR

PANTALOONS

• PANTALOON WAS REGULARLY OPENING STORES IN

THE METROS AND THEIR WAS AN URGENT NEED

FOR A RELIABLE ENTERPRISE WIDE APPLICATION

TO HELP RUN IT’S BUSINESS EFFECTIVELY.

• THE BASIC NEED WAS TO HAVE A ROBUST

TRANSACTION MANAGEMENT SYSTEM AND SUPPLY

CHAIN MANAGEMENT SYSTEM TO RUN THE

OPERATIONS.

• IT NEEDS COLABORATION WITH

PARTNERS,SOURCING AND PROCUREMENT TO

FULLFIL ORDERS .

• IT NEEDS COST OPTIMIZATION,QUALITY,SPEED

BUYING PLANS,IDEA ABOUT MARKET DEMAND

PATTERNS CHANGE.

• IT INVOLVES HANDLING THE LOGISTICS OF MOVING

FINISHED GOODS FROM THE SOURCE INTO THE

STORES;OVERSEEING GLOBAL TRADE AND

PROCUREMENT REQUIREMENTS.

• SELLING GOODS ACROSS A VARIETY OF CHANNELS

TO CUSTOMERS, WHICH REQUIRES MARKETING

AND BRAND MANAGEMENT.

• CAPTURING CUSTOMER REACTIONS, ANALYSING

DATA AND USING IT TO OPTIMISE THE NEXT PHASE

OF DESIGN PROCESS.

• THE COMPANY WAS LOOKING FOR A SOLUTION

THAT WOULD BRING ALL OF ITS BUSINESS AND

PROCESS TOGHETHER.

EVOLUTION OF SUPPLY CHAIN

MANAGEMENT IN PANTALOONSCRITICAL COMPONENT OF SUPPLY CHAIN

PLANNING APPLICATION HELPS PANTALOON MEETS RETAILER’S SERVICE LEVELS AND MAINTAIN PROFIT MARGINS.

PANTALOON HAS DEVELOPED INNOVATIVE SOLUTIONS LIKE PERFORMANCE MANAGEMENT,FREQUENT SALES OPERATION MANAGEMENT,DEMAND PLANNING,INVENTORY PLANNING, PRODUCTION PLANNING,LEAN SYSTEMS AND STAFF.

GOOD SUPPORT FROM MANAGEMENT.

MAJOR STEPS TAKEN AT

BEGINNING • USE OF MORE ARGRESIVE EXPAINSION STRATEGY.

• IN 2004,PRIL MODIFIED ITS OPERATIONAL PLANNING AND INVENTORY MANAGEMENT.

• INCREASE IN OPERATIONAL EFFICIENCY.

• STRENGTHENED ITS BACK-END SUPPLY.

• INCREASE CHAIN AND SOURCING CAPABILITIES TO REDUCE COST.

• IN MAY 2005,PRIL INTRODUCED INFORMATION TECHNOLGY IN SCM.

• INVESTED 1 BILLION IN I.T. FOR NEXT 3 YEAR.

• RESTRUCTURED WAS MADE IN HARDWARE, SOFTWARE AND BUSINESS CONNECTIVITY.

• VIRTUAL PRIVATE NETWORK (VPN) TO HANDLE INHOUSE TRAFFIC OF DATA,VOICE AND VIDEO.

• PARTNERSHIP WITH SAP FOR ADVANCED PLANNING TOOLS AND PROVIDING SOFTWARE SOLUTION.

• INTRODUCTION OF RFID.

THE MATERIAL FUNCTION

• INTRODUCTION OF INFORMATION TECHNOLOGY IN SCM.

• THE ADVENT OF MATERIAL REQUIREMENT PLANNING AND MATERIAL RESOURCE PLANNING BOTH HELPS IN INCOMING MATERIALS AND OUTGOING FINISHED GOODS AS A SYSTEM.

• USE OF B2B AND E-COMMERCE HELPS IN PROCESSES FOR INDIRECT MATERIAL AND REQUIREMENTS.

PROCUREMENT

• IT IS KNOWN AS PURCHASING FROM THE SUPPLIER AT THE LOWEST COST

• CENTRAL PROCUREMENT SYSTEM-

– EACH REGION HAS A REGIONAL HUB.

– UNDER EACH REGIONAL HUB THERE ARE SEVERAL DISTRIBUTION COLLECTION CENTRE.

– THE FUNCTION OF EACH DCC IS TO DISTRIBUTE PRODUCT ACROSS PANTALOON RETAIL STORE.

– THE TOTAL PRODUCT SELECTION AND DISTRIBUTION IS HANDLED BY THE DCC AND THE STORE MANAGER.

MATERIAL PLANNING

• EXTENSIVELY USED FOR FULLFIL THE

GAP OF REQUIREMENT.

• IT CONNECTS BETWEEN THE

SUPPLIER AND DISTRIBUTION

NETWORK.

• GOOD MATERIAL HANDLING,

STORAGE AND MOVEMENT OF

GOODS.

INVENTORY MANAGEMENT

• IT PROVIDES A BUFFER AGAINST THE

DIFFERENCE IN DEMAND RATES AND

PRODUCTION RATES.

RECEIVING AND

DESPATCHING • IT IS OTHERWISE CALLED IN-BOUND AND OUT-BOUND

LOGISTICS.

• IT IS IMPORTANT FOR RETAINMENT OF BRAND VALUE, BECAUSE IT IS THE ENTRY AND EXIT POINT.

• EVERY STORE HAS A TRAINED SALES-FORCE.THEY INVLOVE IN SELECTION OF MERCHANDISE WHO WERE BEST SUITED FOR THE CUSTOMER.

• THEY INVLOVE IN CREATING AWARENESS ABOUT VARIOUS OFFERS.

• PANTALOONS PROVIDE CUSTOMER WITH REPURCHASE TRAIL SERVICE.

• ALSO FOR POST PURCHASE SERVICE THEY HAVE A PROVISION FOR GIFT PACKING.

• THEY GUIDED CUSTOMER THROUGH THE APPROPRIATE CHANNELS TO SOLVE THE PROBLEM.

STORES

THE ATMOSPHERE IS A VERY IMPORTANT FACTOR TO INFLUENCE THE PROCESS.

DECORATING THE STORES ACCORDING TO THE MOOD OF THE CUSTOMERS,TIME OF THE DAY,FESTIVALS ETC.

USE OF GOOGLE LIKE DEVICES TO ASSESS THE MOST ATTRACTIVE POSITIONS FOR PRODUCTS IN THE STORE.

MATERIAL HANDLING

• Future logistics now handles 2.5 millions SKU(stock keeping units)a day across the Future Groups various retail formats across the country

• The biggest driver in a consumer logistics is going to be zero defect in managing the supply chain

• Zero defect can only be achieved through vertical integration across the entire supply chain-from raw material supply, supply, wholesale , retail. The different parts of the supply chain will no longer be able to work in silos

TRANSPORTATION AND

LOGISTICS

• Future logistics initially aimed at handling the supply chain logistics of the group only. However sensing immense opportunity in this area ,the company is now looking to offer its services to its vendors

• The thrust at present will be on modes of surface transport like roads and rail only. However at a latter stage ,sea and air modes might also be considered as per the requirement

RELATIONSHIP WITH

SUPPLIER Future group derive significant

economics of scale in managing their

supply chain. With more then 170000

products, the company maintain a strong

supplier relationship in a partnership

mode, avoiding the exploitative supply.

IMPACT ON MATERIALS

FUNCTION ON • PROFIT

• DEVELOPMENT

• RELATIONSHIP

• MARKETING

• QUALITY MANAGEMENT

• FINANCE AND ACCOUNTING

• INFORMATION TECHNOLOGY

INTEGRATED LOGISTICS

MANAGEMENT• Scientific management.

• Data processing technology.

• Customer satisfaction.

STAGES IN ILM

• STAGE1(PHYSICAL DISTRIBUTION)

• STAGE2(INTERNAL LINKAGE)

• STAGE3(EXTERNAL LINKAGE)

FUTURE OF PANTALOONS

• In the fierce of competitive pressure, Pantaloons has recognized the value of building its own stores as brands to communicate quality as well as value for money

• They have developed a sustainable competitive advantage by translating core values combining products, image and reputation into a coherent retail brand strategy

CONCLUSSION……

• With the generous use of global and local

experiences, Indian retailers are going to

improve their bottom lines with efficient

management of logistics and supply chain

• At the same time Indian retailers like future

group and reliance retail are also going to

show the world how it can be managed in

a more innovative and efficient manner

THANKYOUKING OF INDIAN RETAIL