what is supply chain management_ revised3

8/8/2019 What is Supply Chain Management_ Revised3

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Supply Chain Management

Wal Mart&

Future Group


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` What is supply chain management` Advantages & objectives of SCM` Models of supply chain management`

Retail scenario` Difference between India and abroad

Technology Advancements Operation, procedures Logistics & Inventory Data

Distribution & Partner Network Resources & Trained People

` Case study


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` Supply chain management (SCM) is the oversightof materials, information, and finances as theymove in a process from supplier to manufacturer

to wholesaler to retailer to consumer. Supply chainmanagement involves coordinating and integratingthese flows both within and among companies.


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Improve YourSupplyChain

Network

Minimized

Delays

Enhanced

Collaboration

Reduced

Costs


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Systems

Place

Communication Product

People Value

Logistics Partners


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ServiceKnowledgeClimate

PositionalPromotional

PriceQuality

Style & FashionIntensity

Assortment

Si eocation

ayout & esign

Place

Information

Product

PeopleValue

Pentagon is Customer Centricand Customer

Facing.

The Retailer can impact the Customers

perceptions by leveraging the above elements.


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` The Triangle isorganization centric

` Integration between

and across theenterprise and industry

` A strong anddifferentiating triangle

would result in betterservice offering tocustomer.

Systems

Logistics Partners


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Partners Objectives

Organization Objectives

Customers Objectives


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Customer Objectives

Customer always gets the merchandise of his / her size and choiceMerchandise is always presentable and ready before customer entry

Timely replenishment of fast moving merchandise

Partner ObjectivesPartner ObjectivesPartners always deliver the right quantities as per schedulePartners always deliver the right quantities as per schedule

Sharing of information with partners related to sales stocks and purchase ordersSharing of information with partners related to sales stocks and purchase orders

Organization ObjectivesOrganization ObjectivesCustomer Response TimeCustomer Response Time

Merchandise AvailabilityMerchandise Availability

Distribution CostDistribution Cost

ShrinkageShrinkage

Collaboration with PartnersCollaboration with Partners


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` Anss


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` Wal-Mart Stores is an American public corporation

` Founded by - Sam Walton in 1962

` Slogan Save Money Live Better,

` Head Quarter Bentonville, Benton County, United` Vision- to ordinary folk that the chance to buy the

same thing as rich people


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` Retail Units

Worldwide 7,390

` US Retail Units 4,219

Wal-Mart Stores 920Supercenters 2,565Sams Clubs 593Neighborhood Market141

` International Retail

Units 3,171


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Strength

` It has a reputation for

value for money,convenience and widerange of product all inone store

` The company having its

core competenciesinvolving its use ofinformation technology tosupports its internationalsystem

Weakness

` Weak in some areas due

to huge span of control` Lack of focus` Presence in few countries


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Opportunities Threats

` Expanding consumermarkets.

` To take over, merge ,with or form strategic

alliance with otherglobal retailers,focusing on specificmarkets such as

Europe.` New location and store

types offer Wal Martopportunities to exploitmarket development

` Being a global retailerproblems in the countriesthat you operate in.

` Critical consumer

behavior` Huge competition with

Indian Retailer


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Kishore Biyani is the Managing Director of PantaloonRetail (India) Limited and the Group Chief ExecutiveOfficer of Future Group.

He has led Pantaloon Retails emergence as the Indiasleading retailer operating multiple retail formats that nowcater to almost the consumption basket of a large sectionof Indian consumers.

Kishore Biyani led the companys foray into organizedretail with the opening up of the Pantaloons family store

in 1997.


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FUTUREGROUP

PANTALOON RETAIL INDIA LTD.

HOME SOLUTIONS RETAIL INDIA LTD.

FUTURE BRANDS LIMITED

FUTURE MEDIA (INDIA) LIMITED

FUTURE SUPPLY CHAIN SOLUTIONS LIMITED

FUTURE AXIOM TELECOM LIMITED

FUTURE VALUE RETAIL LIMITED

PANTALOON FOOD PRODUCTS (INDIA) LIMITED

FUTURE KNOWLEDGE SERVICES LIMITED

FUTURE CAPITAL HOLDINGS LIMITED

FUTURE GENERALI INSURANCE COMPANYLIMITED

FUTURE BAZAAR INDIA LIMITED

STAPLES FUTURE OFFICE PRODUCTS PVT.

LIMITED


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Opportunity Threat

` Organized retail (4.16%)

` Evolving consumerpreferences

` In Store ExperienceImprovements

` New formats andconsumption space

` Looking at expansion

` Competition domesticand foreign

` Government policies` Unorganized retail

` Economic condition


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Point-of-sale

system

captures data

in real-time

Data is

transmitted to

warehouses

for Inv. Mgmt.

Retail Link

transmitsdata to

supplier

Orders are

generated from

previous-day

sales

Merchandise is

loaded onto

trucks using

cross-docking

Merchandise

is delivered to

the store

Merchandise is

manufacturedbased on historical

and real-time data

Merchandiseis shipped to

warehouses

Customer

made a

purchase

he store will re-

stock the shelves

with merchandise

Wal-Marts merchandise replenishment cycle is no more than 48hrs

Fleet of 7,000 trucks in US


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Wal- art tr atand rati ns

str t r

Enabl v r day l w ri andab v av rage r fitabilityby r ring , distrib ti nandselling r ducts, whenandwhereneededat l wercost thananycom etitor

erationsstrategy

Short response times Low inventory level

perationstructure

Fast transportationsystem

Crossdocking Retail link between wal-mart andsuppliers


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Political Economical

` Government is stable

` Government policytowards investment isliberal (49%)

` Labor law

` Restriction for MNCs

` Economy is growing(7.2%)

` Recovery from recession` Monetary Policy


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Environment Technology

` According to McKinsey

` Report Indian consumergoods market is expectedto reach $400bl. By 2010

` Rapid expansion of ITsector

` New Trends are coming


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` Contract with small Vendors

` Do not change many vendors

` Currently company is going to finance $830

million to its vendors


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Partner 1

Partner 2

Partner 3

Partner4Bangalore DC

Kolkata DC

Delhi DC

Mumbai DC Store

Store

Store

Store

Store

Store

Store

Store

B2B WMS DSS/MMS

Reverse

Logistic

s

Western

Region

Northern

Region

Eastern

Region

Southern

Region

Operations

Outsource

d

Outbound

Logistics


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Existing Problem In India

` Transportation of goodsfrom distribution centre toretailers is 2 days

` More than 4000 own

trucks` Most trained drivers

` Cross dockingdistribution

` Starts supply chain fromscratch

` Transportation,warehousing and

distribution infrastructure` Cold Chain Distribution` Real Estate


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` India has 3rd largestnetwork in terms ofroad with 3,38344

(k.m).` India has total 65,569

k.m of NationalHighways.

` State Highways totallength only1377719(k.m)

` Largest Nationalhighway no-72369(k.m)

` Reality check`According to

Goldman Sachs,India need to spend

$1.7 trillion but NHAIplanned to expand $70 billion over nextthree year.


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` National Highwayrepresent only 20% oftotal network length.

` Only 16% of Indiasroad are 4 lane orabove.

`Approx. quarter of

India Highway areCongested.

`

U.S. has the largestroad network in theworld with 6,430,366(k.m)

` Number ofTrucksU.S have 68,06,630.(6tier or more)

` Goods transport from

Gurgoan to the port ofin Mumbai can takeup to 10 days


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` How it perceived by Indian Customers

` According to Wharton marketing facultyperception (In U.S consumer understand big store

means low price and small store means highprices, Reversely in India)

` India has 6000 castes and sub castes in 28 stateswith their own tastes, with 23 languages and also

it keep changing.` Typical Indian consumers does not travel more

than 6-7 km for its shopping Opening new storesin big cities

what is supply chain management_ revised3

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