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JourThe Impact of IT-Enabled Supply Chains on the Indian Retail Market nalArticle Paradigm

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  • 8/9/2019 JourThe Impact of IT-Enabled Supply Chains on the Indian Retail Market nalArticle Paradigm

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    The Impact of IT-Enabled Supply Chains on the Indian Retail Market

    Dr.P.Kameswara Rao

    [email protected]

    Abstract

    Every Marketing manager has a cherished dream to capture a sizeable

    market share compared to his counterparts in this present globalized

    marketing environment. In this direction he has to consider various

    potential business models and strategies to entrap his potential consumer

    in the market. Particularly, in the Indian context there are innumerable

    opportunities for consumer goods industry that has high potential to

    garner rich returns to various companies. At present in India there is a

    boom in the middle class incomes and it ould give ample scope for

    Indian as ell as global companies to explore the market through offering

    better !uality and value. "hese are various supply chain strategies

    folloed by various companies in the turbulent economy.

    "his paper focuses on ho to get the benefit of latest I" technologies in

    the retail supply chains ith reference to # class tons at "amil $adu.

    "he main emphasis in this paper as to identify the strategies folloed by

    various %M#& companies to improve close customer relationships. "o

    this end a study as conducted to kno the impact of I" usage to improve

    the performance of retail supply chains. "his paper is exploratory and

    descriptive in nature, herein much of the information about the existing

    supply chains has been extracted through intervies ith the retailers and

    holesalers of %M#& ma'ors.

    KeywordsHLL, CPPD, SCM, CRM, FMCG. !D, "RP, #S!$ a%& C'F e(c.

    Dr.P.Kameswara Rao, !ss(.Pro)essor, #*$+-s%ess Schoo/, #*$+%ers(y, #e//ore+32014, $am/5a&-6 "ma/6 [email protected]

    1

    mailto:[email protected]:[email protected]:[email protected]:[email protected]
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    The Impact of IT-Enabled Supply Chains on the Indian Retail Market

    !" Introduction

    *( s a we// es(a7/she& )ac( % (he prese%( 8/o7a/9e& a%& compe((e wor/& w(ho-( (he

    ac(e s-ppor( o) (he Marke(%8 &epar(me%( s-ra/ s :-es(o%a7/e (o a%y compa%y. So,

    marke(%8 has a/ways 7ee% a% e%(hra//%8 a%& cha//e%8%8 s-7;ec(. !s &ay+7y+&ay (he

    (ech%o/o8y s es(a7/sh%8 %ewer ro/es a%& pro&%8 %ew &me%so%s (o (he marke(%8

    phe%ome%o%, ( has 7ecome cr(ca//y mpera(e (o es(a7/sh parame(ers a%& s(a%&ar&s

    where7y pro)(s ca% 7e reape&. !%y s(ra(e8y )or (he ma((er o) )ac( ee% marke(%8

    s(ra(e8y % (o(a/(y s s-ppose& (o ca(er (o (he %ee&s o) (he c-s(omers a%& (o a/so 7r%8

    ree%-es (o (he compa%y. $here s a &am% %ee& o) %%oa(e marke(%8 (ech%:-es %

    (hs c-(+(hroa( compe((e wor/&. $hese (ech%:-es %o( o%/y s(a7/9e (he marke( s(a%&%8

    o) (he compa%y 7-( a/so w// 7e he/p)-/ % ache%8 compe((e a&a%(a8e.

    !( (hs ;-%c(-re, (hs paper s a% a((emp( (o s(-&y (he (ra&(o%a/ cha%%e/s o) &s(r7-(o%

    a%& (he a7/(y (o (ra%s)orm (hem %(o cos( e))ce%( s-pp/y cha%s. *% *%&a, a co-%(ry

    whch has &ers(y %c-/ca(e& % (s ery %a(-re o) 7-s%ess < ( s a cha//e%8e )or FMCG

    compa%es (o s(a%&ar&9e (her opera(o%s a%& %corpora(e (ech%o/o8y % (he ery s/os o)

    (her 7-s%ess mo&e/.

    #" Re$iew of %iterature

    Reaso%s why %)orma(o% sys(em or *$ %e%(ory recor&s are %acc-ra(e &-e (o e=(er%a/

    a%& %(er%a/ (he)( >-//ar& a%& Res%k, 1?3A, -%sa/ea7/es >e.8. &ama8e&, o-(+o)+&a(e,

    &sco%(%-e&, promo(o%a/, or seaso%a/ (ems (ha( ca%%o( 7e so/& a%y /o%8erA %correc(

    %com%8 a%& o-(8o%8 &e/eres >Rama% e( a/., 2001A. $here s some emprca/ e&e%ce

    o% (he ma8%(-&e o) (hese )ac(ors (ha( ca-se %e%(ory %acc-racy w(h (he -sa8e o) *$ %re(a/ s-pp/y cha%s. !ccor&%8 (o s-rey &a(a, %(er%a/ a%& e=(er%a/ (he)(, a&m%s(ra(e

    errors a%& e%&or )ra-& acco-%(e& )or a% es(ma(e& 1.B o) sa/es % (he S re(a/ %&-s(ry

    % 2001, cos(%8 S re(a/ers SD 33 7//o% >Ho//%8er a%& Das, 2001A. For S

    s-permarke(s, (he 5SRG s-rey >5a(o%a/ S-permarke( Research Gro-p, 2001A es(ma(es

    (ha( %(er%a/ a%& e=(er%a/ (he)(, rece%8 errors, &ama8e, acco-%(%8 errors a%& re(a/

    2

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    prc%8 errors amo-%( (o 2.3B o) sa/es. $hese )8-res o%/y (ake %(o acco-%( (he (em

    a/-e, 7-( %o( a%y process re/a(e& cos(s >e.8. )or ha%&/%8 o) &ama8e& (emsA. $o o-r

    k%ow/e&8e (here s a /m(e& amo-%( o) research (ha( has 7ee% carre& o-( (o s(-&y (he

    e))ec( o) %e%(ory %acc-racy a%& -sa8e o) *$ wo-/& mproe (he s-pp/y cha%

    per)orma%ce. Ga%esha% e( a/. >2001A sm-/a(e (he mpac( o) )orecas(%8 error >amo%8

    o(her parame(ersA o% s-pp/y cha% per)orma%ce, 7-( &o %o( co%s&er %acc-ra(e %e%(ory

    &a(a as we// as app/ca(o%s o) *$ % (he re(a/ s-pp/y cha%s. Loca(o% o) 8oo&s (akes %(o

    acco-%( (ha( errors ca% occ-r a( &))ere%( po%(s % (he pro&-c(o% process, e.8. a( (he

    7e8%%%8 o) (he pro&-c(o% process or c/oser (o (he e%&. $he a-(hors co%c/-&e (ha(

    )re:-e%cy o) error has a co%ss(e%( a%& &om%a%( mpac( o% (he per)orma%ce meas-res

    (ha( (hey -se& % aro-s app/ca(o%s o) %)orma(o% (ech%o/o8y 7y aro-s re(a/ 8a%(s

    % S as we// as % *%&a.

    *%e%(ory %acc-racy s e/m%a(e& 7y %e%(ory co-%(s whch are co%&-c(e& % re8-/ar

    (me %(era/s. $he a-(hors -se (he amo-%( o) /a7or %ee&e&, (he %e%(ory /ee/, (he

    amo-%( o) pas( &-e &ema%& a%& (he perce%(a8e o) /a(e or&ers as per)orma%ce meas-res.

    Kra;ewsk e( a/. >1?A co%c/-&e (ha( %e%(ory %acc-racy as we// as (he -sa8e o) *$ 7y

    (he G/o7a/ S-pp/y Cha% compa%es ha& /ess mpac( %(a//y 7-( (here s a /o%8+(erm

    mpac( o% (he per)orma%ce (ha% a%(cpa(e&. ) (he )ac(ors co%s&ere&, a re&-c(o% %

    7a(ch s9es com7%e& w(h shor(er se(-p (mes ha& (he s%8/e mos( mpor(a%( mpac( o%

    per)orma%ce.

    &" Traditional supply chains'distribution channels

    $here s a say%8 (ha(, ) yo- wa%( (o s-ccee& :-ck/y, yo- %ee& (o 7e %(er&epe%&e%(.

    $hs ho/&s (r-e )or 7-s%ess ho-ses a/so. Lkewse, s-ccess)-/ a/-e crea(o% %ee&s

    s-ccess)-/ a/-e &e/ery. Ho/s(c marke(ers are %creas%8/y (ak%8 a/-e %e(work ew

    o) 7-s%ess. *%s(ea& o) /m(%8 (her )oc-s (o (her mme&a(e s-pp/ers, &s(r7-(ors, a%&

    c-s(omers, (hey are e=am%%8 (he who/e s-pp/y cha% (ha( /%ks raw ma(era/s,

    compo%e%(s, a%& ma%-)ac(-re& 8oo&s a%& shows, how (hey moe (owar&s (he )%a/

    co%s-mer. $here)ore, (here s a s(ra(e8c mpor(a%ce )or compa%es (o ma%a8e (her

    3

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    Ea/-e cha%s e))ec(e/y % or&er (o es(a7/sh a 7e((er /o%8 (erm re/a(o%shp w(h (her

    c-s(omers.

    !s (he mpor(a%ce o), marke(%8 cha%%e/s are se(s o) %(er&epe%&e%( or8a%9a(o%s

    %o/e& % (he process o) mak%8 a pro&-c( or serce aa/a7/e )or (he -se or

    co%s-mp(o%. $hey are a se( o) pa(hways a pro&-c( or serce )o//ows a)(er pro&-c(o%,

    c-/m%a(%8 % p-rchase a%& -se 7y (he )%a/ e%&+-ser. Marke(%8 cha%%e/s m-s( %o( ;-s(

    sere, (hey m-s( a/so make marke(s. $he choce o) appropra(e cha%%e/ a))ec(s a//

    marke(%8 &ecso%s. $he compa%ys prc%8 &epe%&s o% whe(her ( -ses mass

    mercha%&sers or h8h :-a/(y 7o-(:-es. $he )rms sa/es )orce a%& a&er(s%8 &ecso%s

    &epe%& o% how m-ch (ra%%8 a%& mo(a(o% &ea/ers %ee&. $he &ecso%s re/a(e& (o

    marke(%8 cha%%e/s %o/e a /o%8 (erm re/a(o%shp a%& comm(me%( w(h o(her )rms as

    we// as a se( o) po/ces a%& proce&-res.

    "he Indian (cenario) *% *%&a, (he compa%es are -s%8 hy7r& cha%%e/s

    &epe%&%8 -po% (he &))ere%( c-s(omer 8ro-ps a%& re8o%a/ &ers(es % whch

    (hey m8h( 7e opera(%8. Mos( *%&a% ma%-)ac(-rers -se a (hree+(er se//%8 a%&

    &s(r7-(o% s(r-c(-re (ha( has eo/e& oer (he years6 &s(r7-(or, who/esa/er a%&

    re(a/er. !s 8e%era/ e=amp/es, a compa%y opera(%8 o% a// *%&a 7ases co-/& hae7e(wee% 400+2,300 &s(r7-(ors. $he re(a/ers sere& &rec(/y 7y a compa%ys

    &s(r7-(ors may sm/ar/y 7e 7e(wee% 20,000 < 0,000. Depe%&%8 o% how a

    compa%y chooses (o ma%a8e a%& s-perse (hese re/a(o%shps, (s sa/es s(a)) co-/&

    ary )rom (o 00 % %-m7er. $ypca/ 8ross perce%(a8e mar8%s )or a &s(r7-(or

    who/esa/er a%& re(a/er are 4+, 3+4, a%& 10+1 respec(e/y. Iho/esa/%8 s

    pro)(a7/e 7y ma%(a%%8 /ow cos(s a%& h8h (-r%oer. Ma%y who/esa/ers opera(e

    o-( o) who/esa/e marke(s. *%&a has appro=ma(e/y 4 m//o% re(a/ers, mos(/y

    )am/y+ow%e& or )am/y r-% 7-s%esses. *% -r7a% areas, (he more e%(erprs%8

    re(a/ers pro&e cre&( a%& home+&e/ery.

    "he *ynamic +usiness Model6 *% rece%( years, (here has 7ee% %crease& %(eres(

    7y compa%es % mpro%8 (her &s(r7-(o% /a%& /o8s(cs % (her e))or( (o

    4

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    a&&ress (he )erce compe((o%. Marke(ers are %creas%8/y o-(so-rc%8 some key

    )-%c(o%s % (he &s(r7-(o% a%& /o8s(cs areas (o co-rer a%& /o8s(cs compa%es

    a%& search%8 )or e))ce%( ways (o reach (he c-s(omers. Mos( )as( mo%8

    co%s-mer 8oo&s >FMCGA a%& pharmace-(ca/ compa%es -se C/ear%8 a%&

    Forwar&%8 a8e%(s )or (her &s(r7-(o% a%& each C ' F a8e%( serces s(ocks(s %

    a% area, (ypca//y a s(a(e. *( s a/so mpor(a%( (o me%(o% (ha( &-(y s(r-c(-res ary

    amo%8 s(a(es )or (he same pro&-c(, (h-s crea(%8 &spara(e prc%8. I(h

    wareho-s%8 es(a7/shme%( cos(s o% (he rse (he C ' F a8e%(s are 7ecom%8 a

    %orm. Rece%( years hae a/so see% %%oa(e (re%&s where compa%es -(/9e

    &s(r7-(o% cha%%e/s )or pro&-c(s w(h comp/eme%(ary charac(ers(cs. Ih/e

    (here are %o ma;or %a(o%a/ s(ore cha%s, &epar(me%(a/ s(ores a%& s-permarke(s are

    m-shroom%8 % mos( o) *%&a. Mos( (ow%s hae we//+k%ow% &s(rc( marke(s a%&

    re(a/ sa/es o-(/e(s are a/mos( a/ways /oca//y ow%e&. -y%8 a%& se//%8 s o)(e% a

    process o) 7ar8a%%8 a%& %e8o(a(o%. -(s&e (he ma;or me(ropo/(a% areas,

    *%&a s a% %(rca(e %e(work o) r-ra/ //a8es. *% (he rece%( years, (here has 7ee%

    a% emer8e%ce o) ma(-re cha%%e/s o) &s(r7-(o% a%& s-ppor( )or pro&-c(s s-ch as

    comp-(er har&ware, so)(ware a%& perphera/s, ra%8%8 )rom commo&(y pro&-c(s

    (o h8h e%& *$ e:-pme%(. $he (ypca/ &s(r7-(o% s(r-c(-re has 7ee% (wo+(ere&

    w(h a &s(r7-(or serc%8 &ea/ers a%& re(a/ers. *( s )o-%& (ha( mproeme%(s %

    packa8%8 (ech%o/o8y hae a/so ha& a s8%)ca%( %)/-e%ce o% (he mo&e/s o)

    &s(r7-(o% a&op(e& 7y compa%es % *%&a )or marke(%8 persha7/e /a%&

    processe& )oo& (ems. !s (he %-m7er o) &s(r7-(o% cha%%e/s are 8row% (o /ar8er

    propor(o%s, % *%&a &-r%8 (he pas( )ew years w(h a% es(ma(o% o) 4 m//o%

    re(a/ o-(/e(s. !%y pr-&e%( &s(r7-(o% ma%a8er (h%ks a%& &ec&es )rs(, (he 7roa&

    &es8% o) (he &s(r7-(o% cha%%e/ w(h aro-s poss7/e (ers. $he% he ma%y (h%k

    o) (he %-m7er o) mem7ers re:-re& % each (er % aro-s /oca(o%s.

    4. Me(ho&o/o8y

    $he ma% p-rpose o) (hs paper was (o s(-&y (he e=s(%8 &s(r7-(o% %e(works % (he

    co-%(ry 7y mak%8 a% e=p/ora(ory s(-&y o) Da7-r a%& HLL. $he se/ec(o% o) (hese (wo

    compa%es was &o%e ar7(rar/y keep%8 % m%& (ha( HLL has (s s(re%8(h % (s

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    -%para//e/e& &s(r7-(o% %e(workJ a%& Da7-r was se/ec(e&, as ( s o%e o) (he *%&a%

    compa%es, whch has -se& %)orma(o% (ech%o/o8y (o %(e8ra(e (s &spara(e sys(ems.

    $he )oc-s o) (he s(-&y was (o &e%()y (he s(re%8(hs o) -s%8 %)orma(o% (ech%o/o8y (o

    make s-pp/y cha% a%& c-s(omer re/a(o%shp more s-(e& (o (he %ee&s o) (he compa%y.

    $he compa%es hae rea/9e& (he s(ra(e8c mpor(a%ce o) %)orma(o% % &ee/op%8 /o%8

    /as(%8 a%& pro)(a7/e re/a(o%shp w(h (he &s(r7-(ors a%& (he c-s(omers.

    Smp/e ra%&om (ech%:-e has 7ee% emp/oye& % (hs research. $hs s 7eca-se (he

    homo8e%eo-s %a(-re o) (he marke(. ! samp/e o) 20 re(a/ers a%& 0 &s(r7-(ors was

    se/ec(e& % (he sma// (ow%s o) $am/ 5a&-, s-ch as #e//ore a%& Ra%pe( o-( o) 00

    re(a/ers a%& 120 &s(r7-(ors. $he /m(a(o% o) (hs s(-&y s (ha( we co-/&%( )%& a// (he

    respo%&e%(s as (he &-ra(o% )or (hs pro;ec( s /m(e&. ! :-es(o%%are o% (he *$ -sa8e %

    or&er%8 process was -se&. $hs was &o%e (o )%& o-( (he re/ea%ce o) *$+e%a7/e& s-pp/y

    cha% as e=s(%8 % (he C/ass C ca(e8ory (ow%s, whch &o %o( hae (he re/ea%(, *$

    s-ppor( %)ras(r-c(-re. Desp(e a// (a/ks a7o-( %(e8ra(%8 %)orma(o% (ech%o/o8y (he

    ac(-a/ pe%e(ra(o% a%& -sa8e o) *$ % re/a(o%shp ma%a8eme%( or marke(%8 s(// rema%s

    %e8/87/e.

    () $here s %o s8%)ca%( -sa8e o) *%)orma(o% $ech%o/o8y 7y Da7-r a%& HLL (o make

    (he S-pp/y Cha% e))ce%( s s(// %e8/87/e % c/ass C (ow%s.

    (! $here s a s8%)ca%( -sa8e o) *%)orma(o% $ech%o/o8y 7y Da7-r a%& HLL (o make

    S-pp/y Cha% e))ce%( s o% (he 8row(h % c/ass C (ow%s. >!/(er%a(e Hypo(hessA

    $he research &a(a was co//ec(e& 7y o-r 8ro-p o) %(erewers (hro-8h :-es(o%%ares a%&

    perso%a/ %(erews w(h (he &ea/ers a%& (he re(a/ers.

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    a// &so%s >)am/y pro&-c(s, hea/(hcare, ay-re&c pro&-c(s, a%& pharmace-(ca/sA, a%&

    (es(%8 a%& p/o(%8 (he same.

    $he %(e8ra(e& prmary a%& seco%&ary sys(em has a %-m7er o) -%:-e )ea(-res. $he

    )ea(-res /ke (8h( %(e8ra(o% o) schemes, s(ocks(s cre&( /m( co%(ro/, a-(oma(e&

    7a%k%8 o) che:-es, a%& o%/%e che:-e reco%c/a(o% has o7o-s a&a%(a8es % (he

    prmary &s(r7-(o%. $hese are 7asca//y e=(e%so%s (o (he MFCPR "RP sys(em, a%&

    %or core c-s(om9a(o%s. Da7-rs s(ocks(s s-pp/y (o 1. m//o% re(a/ers. See%(y per

    ce%( o) (he sa/es are acco-%(e& )or 7y (he (p 00 s(ocks(s. De(a/s are co//ec(e& )rom

    s(ocks(s o% a week/y 7ass. *% case o) prmary &s(r7-(o% po%(s, a% %creme%(a/ 7ack-p

    s se%( (o (he ce%(ra/ /oca(o% whe% (he CF! c/oses opera(o%s )or (he &ay. $hese are

    comp-(e& a( %8h( % a process ca//e& c-7%8. $he %(e8ra(o% a//ows 7e((er co%(ro/ o%

    ppe/%es % prmary a%& seco%&ary, 7r%8s &ow% %e%(ores, a%& o))ers 7e((er co%(ro/ o%

    pro&-c(o% a%& sa/es a8a%s( a co%)rme& )orecas(.

    *( s )o-%& % (he F*CC* s-rey (ha( more p/ayers % (he sec(or are mo%8 (owar&s (her

    ow% ma%-)ac(-r%8 )ac/(es ra(her (ha% o-(+so-rc%8 (. S(ress%8 (ha( (he sec(or s

    pose& )or )-r(her 8row(h, (he s-rey &ema%&e& pro+ac(e 8oer%me%( ac(o% he/p%8 (he

    %&-s(ry achee /ower cos(, mproe& :-a/(y a%& compe((e%ess. *( a/so reea/e& (ha(

    ee% as mos( o) (he M5Cs hae s(ar(e& so-rc%8 (her pro&-c(s )rom *%&a, *%&a%

    compa%es are 8o%8 8/o7a/ a%& are )oc-s%8 o% oerseas marke(s /ke a%8/a&esh,

    Paks(a%, 5epa/, M&&/e "as( a%& C*S co-%(res. *%&as /ea&%8 ay-re&c &r-8 maker

    a%& FMCG ma;or, Da7-r, has eo/e& a m-/(+pro%8e& s(ra(e8y (o &o-7/e (s e=por(

    (-r%oer. $he compa%y p/a%s (o /a-%ch Da7-r a%& #a(ka 8/o7a//y % Ies( !sa, G-/)

    Coopera(o% Co-%c/ a%& (he S!!RC co-%(res.

    ." The current status of (%%

    *%&as /ar8es( co%s-mer 8oo&s compa%y has a /ar8e &s(r7-(o% %e(work comprs%8 o)

    ,000 re+&s(r7-(o% s(ocks(s a%& 40 C ' F a8e%(s. HLLs &s(r7-(o% %e(work s

    reco8%9e& as o%e o) (s key s(re%8(hs < (ha( whch he/ps reach o-( (o (s pro&-c(s across

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    (he /e%8(h a%& 7rea&(h o) (hs as( co-%(ry. $he %ee& )or a s(ro%8 &s(r7-(o% %e(work s

    mpera(eJ s%ce HLLs corpora(e p-rpose s (o E(o mee( (he eery&ay %ee&s o) peop/e

    eerywhere. *% a&&(o% (o (he o%8o%8 comm(me%( (o (he (ra&(o%a/ 8rocery (ra&e,

    HLL s 7-/&%8 a speca/ re/a(o%shp w(h (he sma// 7-( )as( emer8%8 mo&er% (ra&e. *(

    ams (o reach o%e+/akh sma// //a8es, (o-ch%8 oer 100 m//o% r-ra/ *%&a%s a%& wo-/&

    7e pro&%8 (ra%%8 (o -%&erpr/e8e& wome% )rom sma// //a8es. HLL has prese%ce %

    oer 100 (ow%s coer%8 0 per ce%( o) (he -r7a% pop-/a(o% a%& has 7-/( a 7ase o) oer

    2. /akh co%s-/(a%(s a%& (he key &rer s (he e%(erprse+oppor(-%(y. HLLs sca/e e%a7/es

    ( (o pro&e s-peror c-s(omer serce %c/-&%8 &a/y serc%8, mpro%8 (her ra%8e

    aa/a7/(y wh/s( re&-c%8 %e%(ores. I(h (he %)/-= o) compe((o% )rom sma//er

    compa%es, HLL rea/9e& (ha( ( ha& (o &e)e%& (s (-r) 7y )oc-s%8 o% (s compe((e

    s(re%8(hs. HLL &ee/ope& &s(r7-(o% sys(ems &-r%8 (he shor(a8es o) 1?0s a%&

    1?0s, a%& ( was &ee/ope& )or a re(a/ e%ro%me%( (ha( was mos(/y ma&e -p o) sma//

    8rocers. $he who/e )oc-s was (o ma=m9e (he reach (o (he marke(s a( (he /owes( cos(.

    "ery(h%8 )/owe& )rom (hsJ re(a/ mar8%s, cre&( (erms, a%& promo(o%a/ schemes, po%(

    o) p-rchase ma(era/s, ee% pack s9e a%& &es8%, )or ma=m-m mpac( % (he sma//

    c/-((ere& s(ore space where c-s(omer && %o( hae &rec( co%(ac( w(h (he pro&-c(s. $he

    compa%y e%&e& -p w(h )e para//e/ &s(r7-(o% %e(works )or &e(er8e%(s, soaps,

    7eera8es, )oo&s, a%& ce creams. -( (he re(a/ e%ro%me%( was cha%8%8. *% ma%y

    par(s o) (he co-%(ry s-permarke( cha%s were com%8 -p, 7-( perhaps more s8%)ca%(/y,

    (he a%(cpa(o% o) (he cha%s was )orc%8 (he /ar8er kra%a s(ores (o mo&er%9e, e=pa%&,

    8e (her co%s-mers wa/k+% a%& &rec( access (o pro&-c(s a%& pro&e a w&er ra%8e a%&

    7e((er am7e%ce.

    $he o(her e))or(s ma&e were % (he area o) Drec( $o Co%s-mer >D$CA. D$C was mos(/y

    a par( o) Pro;ec( M//e%%-m, (he (-r%+o)+(he+ce%(-ry %(rospec(o% e=ercse -%&er(ake% 7y

    HLL. !s co%s-mers were 8e((%8 choosy a7o-( pro&-c(s, ( was 7ecom%8 &))c-/( )or

    HLL (o keep -p w(h c-s(omer %ee&s. *% a&&(o%, eco%omc sh)(s were mak%8

    co%s-mers more e%(repre%e-ra/ a%& wome% were 7ecom%8 more empowere& %o( ;-s( as

    co%s-mers, 7-( a/so as %&&-a/s. $hs /e& HLL (o e=perme%( w(h seera/ e%(-res, %

    7roa&/y )o-r areas6 Sa%8am, a hy7r& re(a/ e%(-reJ Shak(, a% am7(o-s a((emp( (o -se

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    (he pr%cp/es o) mcro cre&( or8a%9a(o%s )or FMCG &s(r7-(o%J (he HLL 5e(work, a

    &rec( sa/es sys(em a%& seera/ pro&-c(+p/-s+serce e%(-res.

    HLL s co%s(a%(/y /ook%8 )or %ew mo&e/s o) &s(r7-(o%. *( has %(a(e& (he pro8ram o)

    se/)+he/p 8ro-ps. *( has &ee/ope& a commerca//y s-ccess)-/ mo&e/ 7y (ar8e(%8 wome%

    7e/o%8%8 (o (he /ower %come s(ra(a who ca% )orm SHG >se/) he/p 8ro-psA. HLLs

    pro;ec( ca//e& Shak(, e%a7/es wome% (o (ake mcro cre&( (o 7-y (he compa%ys pro&-c(s

    a%& se// (hs (o coer 0,000 //a8es, %o/%8 13,000 wome% % ;-s( (hree years.

    $he FMCG sec(or has ac:-re& ma%y %ew co%s-mers (hro-8h 7e((er pe%e(ra(o% -s%8 (he

    sma//er pack or (he /ow -%( prce s(ra(e8yJ o/-mes are ye( (o rse s8%)ca%(/y, (ho-8h.

    -( (he rea/ marke( 8row(h co-/& 7e a /((/e 7e((er (ha% wha( (he research %-m7ers show.

    For, Drec(M-/(+/ee/ marke(%8, s(ore 7ra%&s a%& mpor(e& pro&-c(s are %o( %ecessar/y

    cap(-re& 7y (he marke( research a8e%ces. !%&, (he me%ace o) -%)ar compe((o%

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    1" The usa2e of CRM

    !s (he -/(ma(e 8oa/ o) marke(%8 s pro)(a7/e e=cha%8es, marke( ore%(a(o% s a7o-(

    /ay%8 (he )o-%&a(o%s )or (he es(a7/shme%( a%& 8row(h o) re/a(o%shps (ha( w// &e/er

    (hese e=cha%8es. K%ow/e&8e o) co%s-mers s cr(ca/ )or &ee/op%8 s-ccess)-/

    re/a(o%shp marke(%8 s(ra(e8es. *( s, a)(er a//, (he co%s-mers who co%s((-(e (he marke(

    a%& so -%&ers(a%&%8 how a%& whe% co%s-mers choose )rom amo%8 (he p/e(hora o)

    pro&-c(s a%& serces o% o))er e%compasses a w&e are(y o) )ac(ors. For a%y compa%y

    -%&ers(a%&%8 (he 7-y%8 7ehao-r has a/ways 7ee% esse%(a/ )or &ee/op%8 co%s-mer

    re/a(o%shps. CRM ew pro&-c(s as processes. Co%se:-e%(/y, (he c-s(omer &oes %o(

    recee a/-e )rom (he p-rchase (se/), 7-( )rom each e=cha%8e 7e(wee% c-s(omer a%&

    pro&er. !s pro&-c(s are %(e8ra/ par( o) re/a(o%shps, more a%& more compa%es are

    )oc-s%8 o% re/a(o%shp &ee/opme%(. CRM a&&s %ew &me%so%s (o pro&-c(

    &))ere%(a(o%. Pro&-c( &))ere%(a(o% s (h-s %o /o%8er smp/y a7o-( how (o &))ere%(a(e

    pro&-c( )ea(-res )rom compe(%8 pro&-c(s or how (o crea(e prce &))ere%(a(o%. *%s(ea&,

    ma%a8%8 re/a(o%shp re/a(e& processes s a core compe(e%ce. $he e%(re process re/a(e&

    (o (he c-s(omer re/a(o%shp sho-/& 7e e=am%e& a%& how (o make ( a compe((e

    a&a%(a8e sho-/& 7e e=am%e& a%& how (o make ( a compe((e a&a%(a8e sho-/& 7e

    ea/-a(e&. From (he CRM perspec(e, c-s(omer a%& (he compa%y (o8e(her crea(e a/-e,

    whereas (ra&(o%a/ marke(%8 co%s&ere& crea(%8 pro&-c(s )or (he c-s(omer (ha( 8aehm ma=m-m a/-e. $here has 7ee% a sh)( )rom a/-e &s(r7-(o% (o a/-e crea(o%.

    Crea(%8 a/-e %o/es a 7roa&er e=cha%8e o) emo(o%, k%ow/e&8e, a%& ac(s (hro-8ho-(

    (he &-ra(o% o) /a re/a(o%shp. CRM %&ca(es a (wo &me%so%a/ sh)(6 o% o%e ha%& a

    sh)( )rom (ra%sac(o%a/ (h%k%8 (o re/a(o%shp (h%k%8, a%& (he o(her ha%& )rom

    pro&-c(+7ase& (h%k%8 (o e%ha%c%8 (he compe((e &s(%c(e%ess.

    HLLs sca/e e%a7/es ( (o pro&e s-peror c-s(omer serce %c/-&%8 &a/y serc%8,

    mpro%8 (her ra%8e aa/a7/(y wh/s( re&-c%8 %e%(ores. HLL s -s%8 (he

    oppor(-%(y o) %(er)ac%8 more &rec(/y w(h co%s-mers % (her re(a/ e%ro%me%(

    (hro-8h speca//y &es8%e& comm-%ca(o% a%& promo(o%. $hs he/ps % 7-/&%8 (ra))c

    % (he re(a/ s(ores a/so %creas%8 pro)(s. $o mee( (he 8row%8 co%s-mer %ee& o)

    (oo(hpas(e, shampoo a%& soaps &e/ere& (o (he &oors(ep, HLL has p/-%8e& %(o pro;ec(

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    s-ch as Sa%8am Drec(. $he pro;ec( o))ers &))ere%( 7ra%&s o) FMCG pro&-c(s a)(er (he

    co%s-mer has p/ace& hs or&er o% pho%e. *(s pro;ec( Shak( pro&es )ramework, (he

    %(e//ec(-a/ &rec(o%, a%& (he processes 7y whch (he sys(em s 8oer%e& a%& opera(e&.

    y rop%8 % co%s-mers % (he &s(r7-(o% cha%%e/, (he FMCG 7ehemo(h s %creas%8 (s

    prese%ce % (he r-ra/ *%&a, whch o))ers oppor(-%(es )or e=pa%so%. $he Pro;ec( was

    s(ar(e& % 2001, a%& a/rea&y coers more (ha% 000 //a8es % 2 &s(rc(s o) !%&hra

    Pra&esh, Kar%a(aka, Ma&hya Pra&esh, a%& G-;ara(, a%& s pro8resse/y 7e%8 e=(e%&e&.

    $he so% s (o reach oer 100,000 //a8es (here7y (o-ch%8 100 m//o% co%s-mers.

    H%&-s(a% Leer 5e(work >HL5A s (he compa%ys arm % Drec( Se//%8 Cha%%e/, o%e o)

    (he )as(es( 8row%8 % *%&a (o&ay. *( a/rea&y has a7o-( 3. /akh co%s-/(a%(s+a//

    %&epe%&e%( e%(repre%e-rs, (ra%e& a%& 8-&e& 7y HL5s e=per( ma%a8ers. HL5 has

    a/rea&y sprea& (o oer 100 (ow%s a%& (ow%s coer%8 0 per ce%( o) (he -r7a%

    pop-/a(o%, 7acke& 7y 42 o))ces a%& 240 serce ce%(ers across (he co-%(ry. *( prese%(s a

    ra%8e o) c-s(om9e& o))er%8s % Home a%& Perso%a/ Care a%& Foo&s.

    Da7-r s(ar(e& o%/%e so-rc%8 % Decem7er 2002 a%& has s%ce (he% a&op(e& 7o(h, F-//

    So-rce a%& -ck So-rce so/-(o%s )rom !r7a. *(s )rs( so-rc%8 pro;ec( was (o proc-re

    sa))ro% )rom Kashmr, %o( a% &ea/ p/ace )or a (ech%o/o8y+&re% process. $ho-8h (here

    was %o( a 8rea( cha%8e % (he prces, (hs was (he )rs( s(ep % s(ream/%%8 (he p-rchas%8

    process. *% 2003+04, Da7-r proc-re& Rs.210 crore wor(h o) raw ma(era/s (hro-8h e+

    so-rc%8J %ear/y ha/) o) (s (o(a/ raw ma(era/s spe%&. $hs 7ro-8h( % 8rea(er (ra%spare%cy

    a%& s-7s(a%(a/ sa%8s, a%& (he e))or( was reco8%9e& 7y (he *%&a% *%s((-(e o) Ma(era/s

    Ma%a8eme%(, whch awar&e& (he Che) Proc-reme%( ))cer !war& )or 2003(o Da7-rs

    #P+S-pp/y Ma%a8eme%(. *% 2004+0, Da7-r mp/eme%(e& !r7as Spe%& #s7/(y

    so/-(o% as ( -se& e+so-rc%8 (o proc-re (ems /ke her7s, ho%ey, spces a%& packa8%8.

    (her (ha% 7r%8%8 (ra%spare%cy, e+so-rc%8 ee% a88re8a(e& a sca((ere& a%& )ra8me%(e&

    marke( /ke her7s %(o a compe((e a%& ma%a8ea7/e sphere.

    Da7-r works o% (wo "RP sys(ems. For (he o-(7o-%& /o8s(cs, ( r-%s !D "RP s-(e

    k%ow% as MFGPR. For ma%-)ac(-r%8 /oca(o%s, (heres aa5. aa5 re:-res a

    ce%(ra/ serer. $o )( so ma%y /oca(o%s, ma%y o) (hem s(-a(e& % sma// a%& remo(e areas

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    e=p/a%s (o (hem pro&-c( )ea(-res. $he (eam a/so (akes a88re8a(e+/ee/ )ee&7ack

    )rom har&ressers o% co%s-mer e=pere%ce, whch s poo/e& )or s(re%8(he%%8 (he

    pro&-c( o))er%8 a%& comm-%ca(o%.

    Peps *%&a, s p-((%8 (o8e(her a% o%/%e mo%(or%8 sys(em )or re(a/er+/ee/

    &ema%& )orecas(%8, especa//y )or re(a/ers who are key Peps acco-%(s < % o(her

    wor&s, re(a/ers who are 7-/k c-s(omers o% a re8-/ar 7ass.

    !)" Enhancin2 the customer deli$ery process

    $here has 7ee% a 8row%8 co%cer% a%& co%ce%(ra(o% (o a&op( *$ (o make marke(%8 more

    &y%amc. $he FMCG sec(or was (he ear/y a&op(er o) "RP packa8es. $hey were (he )rs(

    (o ;-mp %(o (he "RP 7a%&wa8o%. Ih/e (he s-7se:-e%( 7e%e)(s (ha( were &ere&, were

    cer(a%/y as (hose, whch were e=pec(e&, ( has )orme& a s(ro%8 a%& s(a7/e 7ase o) (he

    c-rre%( *$ %(a(es 7e%8 p-rs-e&. "RP has a/so he/pe& (o 7r%8 % a se%se o) &scp/%e

    % (he aro-s 7-s%ess work)/ows, 7es&es es(a7/sh%8 a /ee/ o) e))ce%cy % (he

    (ra%sac(o%s (ak%8 p/ace across aro-s /oca(o%s. I(h (hs k%& o) s(a%&ar&9a(o%

    access (o %)orma(o% has 7ecome easer a%& ( has mproe& (he (ra%spare%cy across

    aro-s processes.

    Supply Chain Integration6 $he FMCG sec(or s 8row%8 )as( a%& co%s&era7/e

    mpor(a%ce s 7e%8 8e% (o (he &s(r7-(o% %e(work (o mproe (he

    c-s(omer &e/ery process. FMCG compa%es are (ry%8 (o e=(e%& (he

    &oma% o) (her *$ %(a(es (o e%compass (her 7-s%ess par(%ers /ke

    s-pp/ers a%& (he &s(r7-(ors. "=(e%&%8 (he reach w(h (he &s(r7-(or

    wo-/& e%a7/e (he compa%y (o hae 8rea(er %(erac(o% w(h hm a%& a/so

    w// he/p % mak%8 hm )ee/ a% mpor(a%( par( o) (he compa%y. *% esse%ce(hs wo-/& prope/ a moeme%( )rom a Ep-sh sys(em (o a Ep-// sys(em

    (ra%s/a(%8 %(o %e%(ory e))ce%ces r8h( )ro m (he &s(r7-(or s(ock

    po%( (o (he Carrer a%& Forwar&%8 !8e%(s >CF!sA a%& (o (he

    ma%-)ac(-r%8 /oca(o%. "))ce%ces % %e%(ores wo-/& 8e%era(e 7e((er

    R* )or (he &s(r7-(or (here7y s(re%8(he%%8 (he re/a(o%shp w(h (he

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    or8a%9a(o%. *( wo-/& a/so crea(e a sys(em where (he or8a%9a(o% wo-/&

    hae access (o %)orma(o% o) seco%&ary sa/es >)rom (he &s(r7-(or (o (he

    re(a/erA (ra%s/a(%8 %(o h8her &e8ree o) acc-racy % )orecas(%8 a%&

    &ema%& p/a%%%8. *( wo-/& a//ow a% or8a%9a(o% (o a/8% (s e=s(%8

    processes (o 7e more c-s(omer ce%(rc a%& )oc-se& (owar&s marke( %ee&s.

    -/&%8 re/a(o%shps w(h s-ppp0/ers wo-/& e%a7/e compa%es (o moe

    8ra&-a//y (owar&s #e%&or Ma%a8e& *%e%(ory, empower%8 &s(r7-(ors (o

    co%(ro/ %e%(ory a( hs /ee/ as we// as (he compa%y /ee/.

    IT+Powere& Sys(em has 7ee% mp/eme%(e& (o s-pp/y s(ocks (o re&s(r7-(o%

    s(ocks(s o% a co%(%-o-s rep/e%shme%( 7ass. $he o7;ec(e s (o ca(a/y9e

    HLLs 8row(h 7y e%s-r%8 (ha( (he r8h( pro&-c( s aa/a7/e a( (he r8h(

    p/ace % r8h( :-a%((es, % (he mos( cos(+e))ec(e ma%%er. For (hs,

    s(ocks(s hae 7ee% co%%ec(e& w(h (he compa%y (hro-8h a% *%(er%e(+7ase&

    %e(work, ca//e& RS5e(, )or o%/%e %(erac(o% o% or&ers, &spa(ches,

    %)orma(o% shar%8 a%& mo%(or%8. RS 5e( coers a7o-( 0B o) (he

    compa%ys (-r%oer. $o&ay, (he sa/es sys(em 8e(s (o k%ow eery &ay wha(

    HLL s(ocks(s hae so/& (o a/mos( a m//o% o-(/e(s across (he co-%(ry. RS

    5e( s par( o) Pro;ec( Leap, HLLs e%&+(o+e%& s-pp/y cha%, whch a/so

    %c/-&es a 7ack+e%& sys(em co%%ec(%8 s-pp/ers a// compa%y s(es a%&s(re(ch%8 r8h( -p (o s(ocks(s.

    6ut+o) Home co%s-mp(o% o) pro&-c(s a%& serces s a 8row%8 oppor(-%(y %

    *%&a, as e/sewhere % (he wor/&. H%&-s(a% Leer s a/rea&y (he /ar8es(

    p/ayer % (he ho( 7eera8es o-(+o)+home se8me%(, w(h oer 1000 (ea a%&

    co))ee e%&%8 po%(s. $he compa%y s e=pa%&%8 (he %e(work

    a88resse/y, % (he e&-ca(o%, e%(er(a%me%(, /es-re a%& (rae/ se8me%(s.

    HLLs a//a%ce w(h Peps w// s8%)ca%(/y s(re%8(he% (hs cha%%e/.

    Da7-r *%&a s %ow (oy%8 w(h (he &ea o) se((%8 -p ca// ce%(ers w(h (o//+)ree

    %-m7ers or %(erac(e we7s(es or 7o(h. E$he pro7/em o) (he co%s-mers

    7e%8 (oo ma%y a%& (oo sca((ere& rema%s. -( (hey &o reco8%9e (ha(

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    CRM s a% emer8%8 %&-s(ry (re%&. !%& (ho-8h (he compa%y has %o( ye(

    &ec&e& o% (he me&-m (o &ep/oy co%s-mer+e%& CRM, (he e))or( wo-/& 7e

    (o pro&e a p/a()orm (o (he co%s-mer (o 8e( c/oser (o (he compa%y a%&

    e%co-ra8%8 her (o o))er so/-(o%s, )ee&7ack a%& s-88es(o%s.

    (%% %(e%&s (o har%ess (he 7es( o-( o) (s &s(r7-(o% cha%%e/s (hro-8h we//

    (ra%e& emp/oyees a%& cha%%e/ par(%ersJ a (o(a/ o) % access o) 300,000

    peop/e % a//. $hey are (ra%e& (o marke( HLL pro&-c(s % 1,00 (ow%s a%&

    (ho-sa%&s o) //a8es. %&er Pro;ec( Dro%acharya, (he compa%y mpar(s

    (ra%%8 (o oer 10,000 s(ocks( sa/esme% o% a re8-/ar 7ass. $he

    compa%y s p-sh%8 a88resse/y (he co%cep( o) Lakme Sa/o%s a%&

    akme "rainingame& a( pro&%8 h8h :-a/(y (ech%ca/ %p-(s % 7ea-(y

    care, har s(y/%8 a%& sk% care (o (he 7ea-(ca%s a%& s(y/s(s.

    !!" The Results

    $he )%&%8s o) (he s(-&y are show% % (he (a7/es 8e% 7e/ow6

    Iha(eer may 7e (he seco%&ary &a(a a%& repor(s show%8 %(e8ra(o% o) *%)orma(o%

    (ech%o/o8y a( &))ere%( (ers o) (he &s(r7-(o% %e(works (o make (he s-pp/y cha%s

    e))ce%(, % (he c/ass C (ow%s (he -sa8e o) %)orma(o% (ech%o/o8y s ery /((/e a%& %

    some p/acesJ ( s %o( 7e%8 -se& a( a//. *% or&er (o reap (he 7e%e)(s o) %)orma(o%

    (ech%o/o8y ( 7ecomes per(%e%( (ha( (he compa%y sho-/& 7e a7/e (o %(e8ra(e (s aro-s

    /ayers % (he &s(r7-(o% %e(work. *% sma//er (ow%s (he or&er%8 a%& 7//%8 processes are

    s(// (ra&(o%a/ a%& %o( ee% a-(oma(e&. *% case o) a%y pro7/ems w(h (he pro&-c(s or

    %o%+aa/a7/(y o) cer(a% 7ra%&sJ (here are %o (ech%:-es where (he sma// re(a/ers ca%

    hae &rec( access (o compa%y sa/es )orce or CF!s.

    $he s(-&y was co%&-c(e& o% sma// (ow%s o) #e//ore a%& Ra%pe( o) $am/ 5a&-, a%& as

    s(a(e& ear/er (he %)orma(o% was 8a(here& 7y &rec( %(erac(o% w(h (he re(a/ers a%&

    &s(r7-(ors. $he$ull -ypothesiss(a(%8 E$he -sa8e o) *$ 7y HLL a%& Da7-r (o make

    (he S-pp/y Cha% e))ce%( s s(// %e8/87/e % c/ass C (ow%s s accep(e&. $here s a /o(

    (o 7e &o%e (o mproe (he s-pp/y cha%s % sma//er (ow%s.

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    See Anne7ure

    >$a7/e+016 *%(e8ra(o% o) *%)orma(o% $ech%o/o8y % or&er%8 processA

    >$a7/e+026 *%(e8ra(o% o) *%)orma(o% $ech%o/o8y % (he 7//%8 sys(emA

    >$a7/e+036 *%(e8ra(o% o) *%)orma(o% $ech%o/o8y % 7-/&%8 a%& ma%a8%8 re/a(o%shpA

    >$a7/e+046 sa8e o) *$ % ma%a8%8 %e%(oresA

    $he &s(r7-(ors or &ea/ers are ha%8 (her ow% a8e%(s who s( (he re(a/ers a%& (ake

    or&ers )rom (hem. $he sma// re(a/ers /oca(e& % (he %(erors o) (he c(y )ee/ (ha( (he

    compa%y &oes %o( pay m-ch a((e%(o% (o (her &ema%&s as a( (mes (hey are s(ra%&e& w(h

    o-(&a(e& a%& o/&er packa8e& pro&-c(s. !s (he c-s(omer s aware o) (he promo(o%a/

    campa8%s, he 8e%era//y &ema%&s )or (he /a(es( pro&-c(s, whch 8e hm (he &sco-%( or

    some a&a%(a8e % (he p-rchase. 5o%+aa/a7/(y o) (he pro&-c( /ea&s (o /oss )or (he

    compa%y a%& a/so crea(es &ssa(s)ac(o% amo%8s( (he co%s-mers.

    *% case o) %o%+aa/a7/(y o) (he pro&-c(, (he re(a/er has (o se// o(her compa%es pro&-c(

    (o (he co%s-mer. $he compa%y a8e%(s 8e (he re(a/ers /oca(e& % (he ma% shopp%8

    ce%(ers 8rea(er a((e%(o% a%& a/so (her re:-reme%(s are me( o% (he pror(y 7ass. !s (here

    s %o *$ e%a7/e& 7//%8 sys(em, ( 7ecomes mposs7/e )or (he compa%y (o )%& o-( (he

    pos(o% o) s(ocks a%& s(a(-s o) pro&-c(s w(h (he re(a/ers. !/so or&er%8 s &o%e more o%

    ra%&om 7ass ra(her (ha% o% some pro;ec(o%s 7ase& o% sa/es o) preo-s mo%(hsJ (

    crea(es comp/e=(y % (he &s(r7-(o% sys(em.

    *% or&er (o reap (he 7e%e)( o) a-(oma(o% a%& s-pp/y cha% ma%a8eme%( ( s mpor(a%(

    )or (he FMCG sec(or (o s/ow/y (ake (he sma//er (ow%s a/so % (her )o/& a%& (ry (o

    mproe (her reach 7y ca(er%8 (o (he %ee&s o) (he sma//er re(a/ers a/so. For 7-/&%8

    /o%8er /as(%8 re/a(o%shp, ( s mpor(a%( (o 7-/& 7e((er re/a(o%shp w(h sma//er

    re(a/ers % (he C/ass C (ow%s, as (hey are ac(-a//y respo%s7/e )or co%%c%8 (heco%s-mer (o p-rchase a par(c-/ar pro&-c(. !s (he kra%a s(ores are ha%8 more o%e (o

    o%e re/a(o%shp w(h (he co%s-mers, 7e%8 /oca(e& %ear hsher ho-se, (rea(%8 (he

    sma//er re(a/ers 7ecomes mpor(a%(. Grea(er mpor(a%ce s 7e%8 8e% (o (he

    who/esa/ers a%& &s(r7-(ors ra(her (ha% (he re(a/ers.

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    !#" CRM can help 4MC5 companies to

    1. Manage campaign6 $he s-ccess o) corpora(e marke(%8 pro8rammes has 7ecome

    &rec(/y propor(o%a/ (o a compa%ys a7/(y (o cap(-re a%& a%a/y9e (he r8h( &a(e.

    *%)orma(o% (ech%o/o8y e%a7/es compa%es (o s(ore re/ea%( %)orma(o% a7o-(

    (her co%s-mers a%& p/a% (he campa8% (ar8e(%8 (he r8h( co%s-mers. "ar/er (he

    marke(%8 ma%a8ers &ec&e& -po% (he marke(%8 s(ra(e8es, /a-%che& (he

    a&er(s%8 a%& promo(o% campa8% a%& wa( )or marke( reac(o% ac(o%. *$

    e%a7/es (hem (o&ay, (o e=(rac( %)orma(o% a%& -se /( (o (ake &ecso%, (he res-/(s

    o) (he a&er(s%8 s(ra(e8y a%& promo(o%s ca% 7e meas-re& o% (he &ay+(o+&ay

    7ass.

    2. Involve #ustomers in *ecision Making) w(h (he &s(r7-(o% /%e(worek 7ecom%8

    c/ose/y a((-%e& (o c-s(omer %ee&s, more a%& more compa%es are 87%8h

    pre)ere%ce (o co%s-mers /kes a%& op%o%s. I(h Lakme sa/o%s, e+cho-pa/s,

    Pro;ec( Shak(, (here s a 8row(h % (he process o) %o/%8 co%s-mers as a par( o)

    &s(r7-(o% %e(work. $hs a/so e%a7/es compa%es (o 8e( )ee&7ack a7o-( (he

    aro-s %ew pro&-c( /a-%ches mme&a(e/y.

    3. $e Product aunches and Innovations) 5ew pro&-c( %%oa(o%s a%& /a-%ches

    are 7e%8 (a/ore& (o c-s(omer %ee&s. Ha%8 &a(a aa/a7/e /a( a// po%(s o) (hemarke(%8 process has e%a7/e& ma%a8ers (o p/a% %ew pro&-c( /a-%ches accor&%8

    (o (he c-s(omer re:-reme%(s a%& /)es(y/e. $hs re&-ces (he pro7a7/(y o) error.

    4. +ehaviour Prediction) $hs e%a7/es compa%es (o pre&c( wha( c-s(omers are

    /ke/y (o p-rchase % )-(-re. *%(e8ra(%8 marke(%8 w(h (he s-pp/y cha% a%&

    &s(r7-(o% cha%%e/s wo-/& he/p compa%es % %o( o%/y re&-c%8 %e%(ory 7-(

    a/so -%&ers(a%&%8 wha( pro&-c(s co%s-mers are 8o%8 (o p-rchase a%& whe%. *$

    has ma&e ( poss7/e (o pre&c( whch k%& o) pro&-c(s co%s-mer wo-/& p-rchase

    % )-(-re, whch pro&-c(s hae (he /ke/hoo& o) 7e%8 p-rchase& w(h o(her

    pro&-c(s. !ccor&%8/y ( 7ecomes easer (o p/a% promo(o%s a%& &sco-%(s a(

    s(ores (o %crease 7-y%8 o) (he pro&-c(s.

    . #hannel ptimization) $he 8oa/ o) marke(%8 a-(oma(o% s (o pro&e r8h(

    messa8e (o r8h( c-s(omer a( (he r8h( (me. I(h (he a&e%( o) (he *%(er%e(, ma%y

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    )rms are appe%&%8 E(hro-8h (he r8h( cha%%e/ as c-s(omer pre)ere%ces eo/e.

    /(ma(e/y mak%8 (he &s(r7-(o% cha%%e/s 7e((er e:-ppe& (o mee( (he c-s(omer

    %ee&s, wo-/& mea% 8%8 more a/-e (o (he co%s-mer.

    . #ustomer /etention) %&ers(a%&%8 (he co%s-mers, pre&c(%8 (her 7ehao-r

    wo-/& a/so e%a7/e compa%es % a/8%%8 (her s(ra(e8es (o re(a% (he c-s(omers. *(

    wo-/& he/p compa%es (o -%&ers(a%& why a par(c-/ar co%s-mer has &ec&e& (o

    cha%8e hsher pre)ere%ce. !)(er a//, more &ssa(s)e& oco?%s-mers /eae mea%s

    8rea(er /oss (o (he compa%y % )orm o) ree%-es.

    CRM s )rs( a%& )oremos( a 7-s%ess s(ra(e8y, o%e (ha( he/ps compa%y (8h(e% (s

    7-s%ess prac(ces across or8a%9a(o%s wh/e )or8%8 a% ro%c/a& co%%ec(o% w(h (he

    co%s-mer. *( %o/es more (ha% %)orma(o% (ech%o/o8y.

    Conclusions

    Ie are a7/e (o &e&-ce (ha( (here s a 8row%8 %ee& o) %(e8ra(%8 a%& &es%8 s(ra(e8es

    wh/e mp/eme%(%8 *$ so/-(o%s % (he re(a/er /ee/ as we// as &s(r7-(or /ee/. *% *%&a

    (here s a %ee& (o re&-ce (he /ayers (ha( e=s( % (he cha%%e/s o) &s(r7-(o% a%& make

    (hem e))ce%( % (erms o) carry%8 e=cess %e%(ores a%& a/so more &y%amca//y re/a(e&

    (o %(erpre( co%s-mer %ee&s. !s (ra&(o%a/ &s(r7-(o% cha%%e/s are s(// 7e%8 )o//owe&

    (he cos( 7e%e)( ca%%o( 7e (ra%s)erre& (o (he co%s-mer. FMCG sec(or has (he mos(

    -%we/&y &s(r7-(o% s(r-c(-re a%& -%(/ ( s (ra%s)orme& a%& res(r-c(-re& (he 7e%e)(s o)

    *$ % )orm o) SCM a%& CRM ca%%o( 7e (ra%s/a(e& %(o ree%-es. $here)ore, (he

    compa%es hae (o &o /o(s o) homework 7e)ore )ac%8 (he )erce compe((o% o) G/o7a/

    8a%(s % (he re(a/ sec(or. $here s a w&er scope )or aca&emca%s as we// as %&-s(ra/s(s

    (o co%&-c( (horo-8h research o% (he *mpac( o) G/o7a/ S-pp/y Cha% S(ra(e8es o% (he

    *%&a% Marke(.

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    A88E9RE

    Table-)! Inte2ration of Information Technolo2y in orderin2 process

    $ype o) r&er%8 Process

    Fo//owe&

    Ds(r7-(or Lee/ B Re(a/er Lee/ B

    Comp-(er+e%a7/e& 0.33 ++++++Ma%-a/ pho%es 33.1 12.

    $hro-8h Compa%y !8e%(s 1.1 .22

    Table-)# Inte2ration of Information Technolo2y in the billin2 system

    $ype o) //%8 Process

    Fo//owe&

    Ds(r7-(or Lee/ B Re(a/er Lee/ B

    Comp-(er+e%a7/e& 12. ++++++

    Ma%-a/ .33 22.3

    $hro-8h Compa%y !8e%(s 21.10 .3

    Table-)& Inte2ration of Information Technolo2y in buildin2 and mana2in2 relationship

    $ech%:-es )or Re/a(o%shp Ma%a8eme%(

    Fo//owe&

    Re(a/er Lee/ B

    Comp-(er+e%a7/e& +++++

    Ds(r7-(ors !8e%(s 4.44

    $hro-8h Compa%y !8e%(s 4.

    Table-): sa2e of IT in mana2in2 in$entories

    $ype o) *%e%(ory

    Ma%a8eme%( Fo//owe&

    Ds(r7-(or Lee/ B Re(a/er Lee/ B

    Comp-(er+e%a7/e& ++++ ++++++

    Ra%&om 3.14 ?.4

    Forecas(%8 7y Mo%(h/y

    sa/es

    4. 10.2