Supply Chain Management Retailing

8/8/2019 Supply Chain Management Retailing

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SUPPLY CHAIN MANAGEME

RETAILING

Presented By

ASHOK KU P

SHOVAN DA

SURJYA KU D

TRIDEEP SAH


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WHAT IS SUPPLY CHAIN

It is a network of facilities and d

options that performs the fun

procurement of materials, transformthese materials into intermediate an

products, and the distribution

products to the customers.


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Four basic processes in supply chain

Plan .

Source .

Make .

Deliver .


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WHAT IS THE OBJECTIVE OF S

CHAIN?

To ensure that right product reache

place at right time and importantright price and profit for the retailer.


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WHY THERE IS A NEED FO

MANAGING THE SUPPLY CH

The most important need for the con

the cost involved in transportation,

warehousing and the shipping of ma

the end consumer will affect the pro

of the business.


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ProductDevelopment

Inventory

Management

Distributi

Demand

Creation &

Forecast

Customer


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To achieve strategic fit

To cater to the Competitive strategy

To reduce the holding cost.

To tackle the national and internatio

competition.

To earn more profit margin.


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Elements of SCM Demand Creation and Forecast : Create a niche,

customer needs/preferences, Gauge Market Potcompetitor environment

Product Development and commercialization : PPackaging, Price Structure

Distribution Network Configuration: Number andsuppliers, production facilities, distribution cente

warehouses and customers. Distribution Strategy: Centralized versus decentr

shipment, Cross Docking, pull or push strategies,logistics.

Information: Integrate systems and processes thsupply chain to share valuable information, inclu

signals, forecasts, inventory and transportation e Inventory Management: Quantity and location o

including raw materials, work-in-process and fini


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EVOLUTION OF SUPPLY C

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1970 1980 1990 2000

S

m

e

R

M


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FRAMEWORK OF SCM


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CAUSES OF SUPPLY CHA

INTEGRATION

Short life span.

Changing demand, mood of the customer,

fashion, seasonal, perishable .

High volatility. Demand is influenced by

weather, T.V., movies, advertisements.

Low predictability.

Due to volatility of demand it is extremely

forecast the demand.


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Cont.

High impulse purchase (impulse and

purchase).

Main focus is on how to reduce the lea

There are three critical lead time:

Time to market - the time taken by the org

recognize the market opportunity and bri

product to the market.


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Cont.

Time to serve the time taken from

the customers order to delivering t

Time to react how long does it takthe output of the business in respon

volatile demand.


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Zaras Supply Chain

While its rivals start planning their lines onine months before they hit the shelves, Zreputation for instant reaction to fashion rapid restocking of stores to meet deman

that are hits. Zara can make a new line, from the initial

when it arrives in the shops, in just three

It's also not afraid to pull items from shelvcancel ones that aren't selling.


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How they do it ?

The secret, according to CEO Jose Castellano, is its reliancecommunication, and the way it uses existing technology toalmost every aspect of design, production and distribution

Its design-and-manufacturing headquarters is a sprawling complex with a vast network of underground tunnels linedbelts that transport clothing from one part of the complex

Almost all ofZara's clothes are made here, right from the dying stage.

Designers are in daily contact with store managers, discusare most in demand and which aren't

This, supported by real-time sales data, allows the designerepeat orders and create fresh designs, and from their facthey are shipped directly to the stores, eliminating the neewarehouses.


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From design to engineering it for low-cost

to taking the gray fabric and printing it anCutting sewing packing and shipping to restore locations in just 21 days.

It takes the coordinated and well synchroeffort of 5 teams that share the same spaHeadquarters.

Thats why it is important for a retailer notfocus on inventory but also on all aspectscreation and its fulfillment something thato have mastered.


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Supply Chain Management Retailing

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