A retail chain differs from other industries by nature of its number of locations. A conventionalmanufacturing industry has a production at a limited number of locations and sales beinghandled from a few more. However, a retail industry has sales from a large number oflocations. If it is in the food and beverage business, you could say that its production is alsobeing done at all locations. This means that material handling, production, sales anddistribution as well as finance transactions are being conducted at all their stores. Each storerequires an inventory control system, a Point of Sales system and an accounting system(maybe also a production system)

selling goods or services to the final consumers for personal , non-business use.

retail management is the sale by seller in small quantities to customer not for resale I prefer to understand

Manufacturer

Consumer

Wholesaler

Retailer

storing the goods and providing us with an assortment of products.

By being available at a convenient location , he creates place utility.

Finally, when the product is sold, ownership utility is created..

Modern supply chain management retail is based on the following concepts:

Vendor Managed Inventory (VMI)Efficient Consumer Response (ECR)Collaborative Planning, Forecasting and Replenishment (CPFR)Electronic marketplacesRadio frequency Identification Detection (RFID)

Vendor Managed Inventory (VMI)

VMI is a continuous replenishment program in which the retailer provides the supplier with detailed information to allow the supplier to manage and replenish product at the store or warehouse level

– Benefits of VMI• Solidified customer-vendor relationships• Reduced shipping costs and lead time• Fewer human errors • Improved service levels

Efficient Consumer Response (ECR)

ECR is a grocery industry supply chain management strategy aimed at eliminating inefficiencies, and non-value-added costs, thus delivering better value to the end customers

ECR attempts to eliminate inefficiencies by introducing strategic initiatives in four areas: Efficient store assortment Efficient product information Efficient promotion Efficient product replenishment

Efficient Consumer Response (ECR) Programs that companies need to have in place are:

Category management (i.e. managing a group of products as strategic business units within each store)

Continuous replenishment program (CRP)

Further support is needed of the following technologies: Barcodes / Scanners Electronic Data Interchange (EDI) Computer aided ordering (CAO) Cross docking / direct store delivery Activity based costing

The main obstacle is not technical but managerial, with managers reluctant to transform their adversarial trading relationships into open partnerships

The main obstacle is not technical but managerial, with managers reluctant to transform their adversarial trading relationships into open partnerships

Collaborative Planning, Forecasting and Replenishment (CPFR)

CPFR allows cooperation across the supply chain, using a set of processes and technology models.

Providing dynamic information sharing and integrating both demand and supply side processes, for effectively planning, forecasting and replenishing customer needs through the total supply chain.

Advantages of CPFR: Increased responsiveness Product availability assurance Optimized inventory and associated costs Increased revenues and earnings– Improved relationships with trading partners

Electronic marketplaces

• A distinction can be made between Open exchanges (accessible for everyone) and Private exchanges (only for members)

• An e-marketplace can provide a platform for: – Core commerce transactions which can automate and streamline the entire

requisition-to-payment online– A collaborative network for production design, supply chain planning,

optimization and fulfillment process– Industry wide product information that is aggregated into a common

classification and catalogue structure– An environment in which sourcing, negotiations and auctions can take place

in real-time– An online community for publishing and exchanging industry news,

information and events

Radio frequency Identification Detection

• RFID is a term for technologies that use radio waves to automatically identify.

• Auto-ID Center is developing an open global network (a layer on top of internet) that can identify anything, anywhere, automatically.

• This network will give companies near perfect supply chain visibility• Also, if widely adopted the network could:

– eliminate human error from data collection– reduce inventories– keep product in stock– reduce loss and waste– free up staff to perform more value added functions– improve safety and security

Supply chain strategy trends The four major developments show how the landscape of the traditional

retail buyer has changed

Advanced systems will allow them to optimize their supply chain operations

Future competition in retail will no longer be between individual companies, rather it will be among clusters of companies

As research shows the development towards this kind of collaboration can be troublesome

Trust between the partners, a long term commitment and a balanced sharing of risks and rewards is required to be successful

#1 retailer in India by the early 21st century.

Pantaloons, a family departmental store.

Pantaloons, which made the store one of the most successful lifestyle stores in India in the early 2000s.

Issues:• Recent trends in the Indian retailing industry, changing requirements and preferences of consumers, Understanding changing consumer lifestyles and fulfilling their needs, Successful retailing formats

Content

*Charging ahead.*Pantaloons Store.

*Big Bazaar’s.*Food Bazaar’s.

Procurement is a centralised activity at the HO.?Changes in Confirmed Purchase Orders was a regular activity.

stores would get stocked out of key ingredients.?HO was unable to receive the Sales figures from all stores in any single day. Some stores would send their figures twice.?The problem was that the amount deposited and the collection figures of the store would rarely, if ever, match.?

Recording of Consumption in each store was simply not feasible.?

Price changes and promotional schemes were decided by the HO and the information was sent to the Stores.?

Overview;-

Reckoner ERP, eReckoner and eReckoner retail was provided to the client. Reckoner wouldbe used by the HO while eReckoner retail was to be used by the Stores, Warehouses and theregional offices.

The stores would conduct daily transaction in eReckoner retail using the in built POS system.

The Reckoner POS system was an easy to usesimple interface. At the end of the shift,

The server would have checks built in to preventthe same data from being uploaded twice.

This would also automatically update the stock at the stores for them to know theircurrent stock availability.

Vendor deliveries were nowautomatically available to the HO for Bill Passing.

Any price changes or promotional schemes decided by the HO would be entered inReckoner.

The stores could enter all expense and other financial transactions online in eReckoner.These transactions would be available to the HO so that they could reconcile the cashcollection and expense figures for each store.

Conclusions

• The buying function plays a very important role in trade companies.

• In retail companies buying policy is much more integrated with sales and marketing policy,

• Company policy is primarily focused on improving turnover and margin whilst reducing working capital.

• Retail today is a truly international business. • Advanced information systems allow the application of new

logistics concepts such as VMI, ECR, CPFR and electronic marketplaces.