Description
supply chain in the retail industry & discussed supply chain of the future group. It explains the activities involved in reverse logistics.
Distribution & SCM in Retail Industry
SCM DEFINED
The supply chain is the network of organizations that are involved through upstream and down stream linkages, in different processes and activities that produce value in the form of products and services in the hands of the ultimate customer “Supply Chain may be defined as “flow of materials through procurement, manufacturing, distribution, sales & disposal”
THE SUPPLY CHAIN – ANOTHER VIEW
Plan Source Make Deliver Buy
Suppliers
Manufacturers
Warehouses & Distribution Centers
Customers
Material Costs
Transportation Transportation Costs Transportation Costs Manufacturing Costs Inventory Costs Costs 3
SUPPLY CHAIN PROCESS
Procurement Cycle
Supplier
Manufacturing Cycle
Manufacturer
Replenishment Cycle
Distributor
Customer Order Cycle
Retailer
LOGISTICS MANAGEMENT IN RETAIL
“the process of planning implementing & controlling the effective & efficient flow & storage of goods, services & related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements “
IMPORTANCE
It Effective logistics system contributes immensely to the enables an organized retailer to move or store products more Therelogistics system works well, & marketingprevents needless IfEfficientdoubt thatmanagement not only objectives of ahold a is no logistics better effectively reduces good promotional delivery schedule is a stock outs, firm. achievements of the business the retail movement of goods, when buyers are reluctant down inventories& placevehicles transferring products back helps and improve customer products & thereby and It creates time strategy utilities in theservice – all at the same time
forth; but also frees up storage space for more productive use in maximizing the value satisfaction to consumers to invest in warehousing & keeping higher level of inventories
REVERSE LOGISTICS ACTIVITIES
Handling of returned merchandise Damage Seasonal inventory Resell via outlet Salvage of outdated products Recycling and reuse Material reuse Remanufacturing / refurbishing Hazardous materials disposition
REVERSE LOGISTICS IN RETAIL
Process
MACRO PROCESSES IN THE SC OF BIG BAZAAR
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
• Market • Price • Sell
INTERNAL SUPPLY CHAIN MANAGEMENT (ISCM)
• • • • • Strategic Management Demand Planning Supply Planning Fulfillment Field Service
SUPPLIER RELATIONSHIP MANAGEMENT
• • • • • Source Negotiate Buy Design Collaboration Supply Collaboration
• Category makes purchase order of flow store directly in • Keeps the record of movement for the of material from
DELIVERY OF THE REQUIRED STOCK TO THE RAISING PURCHASE ORDER TO VENDOR RECEIVING OR WAREHOUSE STORE OF THE MATERIAL
Vendor delivers the material to theand local vendor given location case of immediate requirement per week sale on the floor warehouse to store & also per day & Document along with the stock: is received from vendor • Generallythis data & on market research, estimates demand from Based on at store material 1. Consignee copy 2. POD copy against invoice by following all the rules of SOP the customer & finally vendor 3. Purchase order makes order to thecopy 4. Invoiceat gate & compare • Gate keeper checks documents 5. ASN copy 6. Quality check material with invoice 7. Way bill (Out of state)
• • •
1. Ordering
2. Delivery
3. Reception
LOGISTICS
Logistics is a part of supply chain management which deals with the inwarding & outwarding of goods and non saleable item as well
RECEPTION OF GOODS FROM DC • Checking of the goods when received • The particular department is informed regarding the reception of good • The no of items are checked in front of the department member in stock transfer no wise • With the help of the department member any discrepancy/shrinkage is found & informed to the supply site • The inwarding will be done in register also will be updated in the system the department manager moves the items to the floor
RECEPTION OF GOODS FROM THE VENDOR
• If the goods are from vendors then Tax, Purchase order and invoice are checked • The vendor himself has to go and take permission for the submission of goods in logistics • Further of GRN ( Goods Received Note) of 3 copies are prepared for Logistics, for respective department and for DC vendor • All the above process mentioned are for inwarding
REVERSE LOGISTICS
Big Bazaar has: items and unsold/excess stock to CRC/ZRC , accompanied • Return defective
by Goods return forms • Customer Returns: each returned item has adedicated return note • Central Return Center ( CRC) which is a Customer specialized Decision is taken whether thesewarehouse be sold as scrap locally at stores/ building/area within Central products to dispatched to vendor or dispatched to CRC (non apparel items)/ZRC(Apparel • Zonal Return Center (ZRC ) which handles returns of each zone at items) these warehouses recycling, inspection, CRC/ZRC takes decision about • Defective items: after quality reconditioning, remanufacturing and refurbishing of productsby done which aredisposition of these items are ? Scrap sale return items ? Customer ? Auction sale ? Return to vendorsand ? Defective items ? Refurbish/ rework and sale in factory outlets Unsold goods/excess stocks ? Refurbish/rework and sale as fresh stock
TRANSPORTATION @ Big Bazaar
• Transportation is movement of goods from one location to another
• Transportation is the main artery of logistics and supply chain management • Though transportation is at vendors expenses Big Bazaar has heavily invested into transportation for the effective flow of goods • Transportation charges paid by the Big Bazaar to the transporter are 17500/month up to 1500 kilo meter
SCM TECHNOLOGY in Big Bazaar
• IT helps to maintain manufacturing and distribution activities
EIS and MIS reports generated for analysis and decision making
• Future Supply Chain Solutions (FSCS) provides all the SCM related latest technology to the business • FSCS has implemented a best-in-class WMS(Warehouse Management System), integrated with ARS(Automatic Replenishment System) • FSCS has used advanced network planning and analysis tool to model optimized supply chain network for Big Bazaar retail operations • The FSCS distribution centers are equipped with Imported Material Handling Equipments such as Reach Trucks, Stackers, Fork Lifts, Pallet Trucks, Roll Cages, RF Guns, Conveyors etc.
Thank You
doc_933135010.pptx
supply chain in the retail industry & discussed supply chain of the future group. It explains the activities involved in reverse logistics.
Distribution & SCM in Retail Industry
SCM DEFINED
The supply chain is the network of organizations that are involved through upstream and down stream linkages, in different processes and activities that produce value in the form of products and services in the hands of the ultimate customer “Supply Chain may be defined as “flow of materials through procurement, manufacturing, distribution, sales & disposal”
THE SUPPLY CHAIN – ANOTHER VIEW
Plan Source Make Deliver Buy
Suppliers
Manufacturers
Warehouses & Distribution Centers
Customers
Material Costs
Transportation Transportation Costs Transportation Costs Manufacturing Costs Inventory Costs Costs 3
SUPPLY CHAIN PROCESS
Procurement Cycle
Supplier
Manufacturing Cycle
Manufacturer
Replenishment Cycle
Distributor
Customer Order Cycle
Retailer
LOGISTICS MANAGEMENT IN RETAIL
“the process of planning implementing & controlling the effective & efficient flow & storage of goods, services & related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements “
IMPORTANCE
It Effective logistics system contributes immensely to the enables an organized retailer to move or store products more Therelogistics system works well, & marketingprevents needless IfEfficientdoubt thatmanagement not only objectives of ahold a is no logistics better effectively reduces good promotional delivery schedule is a stock outs, firm. achievements of the business the retail movement of goods, when buyers are reluctant down inventories& placevehicles transferring products back helps and improve customer products & thereby and It creates time strategy utilities in theservice – all at the same time
forth; but also frees up storage space for more productive use in maximizing the value satisfaction to consumers to invest in warehousing & keeping higher level of inventories
REVERSE LOGISTICS ACTIVITIES
Handling of returned merchandise Damage Seasonal inventory Resell via outlet Salvage of outdated products Recycling and reuse Material reuse Remanufacturing / refurbishing Hazardous materials disposition
REVERSE LOGISTICS IN RETAIL
Process
MACRO PROCESSES IN THE SC OF BIG BAZAAR
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
• Market • Price • Sell
INTERNAL SUPPLY CHAIN MANAGEMENT (ISCM)
• • • • • Strategic Management Demand Planning Supply Planning Fulfillment Field Service
SUPPLIER RELATIONSHIP MANAGEMENT
• • • • • Source Negotiate Buy Design Collaboration Supply Collaboration
• Category makes purchase order of flow store directly in • Keeps the record of movement for the of material from
DELIVERY OF THE REQUIRED STOCK TO THE RAISING PURCHASE ORDER TO VENDOR RECEIVING OR WAREHOUSE STORE OF THE MATERIAL
Vendor delivers the material to theand local vendor given location case of immediate requirement per week sale on the floor warehouse to store & also per day & Document along with the stock: is received from vendor • Generallythis data & on market research, estimates demand from Based on at store material 1. Consignee copy 2. POD copy against invoice by following all the rules of SOP the customer & finally vendor 3. Purchase order makes order to thecopy 4. Invoiceat gate & compare • Gate keeper checks documents 5. ASN copy 6. Quality check material with invoice 7. Way bill (Out of state)
• • •
1. Ordering
2. Delivery
3. Reception
LOGISTICS
Logistics is a part of supply chain management which deals with the inwarding & outwarding of goods and non saleable item as well
RECEPTION OF GOODS FROM DC • Checking of the goods when received • The particular department is informed regarding the reception of good • The no of items are checked in front of the department member in stock transfer no wise • With the help of the department member any discrepancy/shrinkage is found & informed to the supply site • The inwarding will be done in register also will be updated in the system the department manager moves the items to the floor
RECEPTION OF GOODS FROM THE VENDOR
• If the goods are from vendors then Tax, Purchase order and invoice are checked • The vendor himself has to go and take permission for the submission of goods in logistics • Further of GRN ( Goods Received Note) of 3 copies are prepared for Logistics, for respective department and for DC vendor • All the above process mentioned are for inwarding
REVERSE LOGISTICS
Big Bazaar has: items and unsold/excess stock to CRC/ZRC , accompanied • Return defective
by Goods return forms • Customer Returns: each returned item has adedicated return note • Central Return Center ( CRC) which is a Customer specialized Decision is taken whether thesewarehouse be sold as scrap locally at stores/ building/area within Central products to dispatched to vendor or dispatched to CRC (non apparel items)/ZRC(Apparel • Zonal Return Center (ZRC ) which handles returns of each zone at items) these warehouses recycling, inspection, CRC/ZRC takes decision about • Defective items: after quality reconditioning, remanufacturing and refurbishing of productsby done which aredisposition of these items are ? Scrap sale return items ? Customer ? Auction sale ? Return to vendorsand ? Defective items ? Refurbish/ rework and sale in factory outlets Unsold goods/excess stocks ? Refurbish/rework and sale as fresh stock
TRANSPORTATION @ Big Bazaar
• Transportation is movement of goods from one location to another
• Transportation is the main artery of logistics and supply chain management • Though transportation is at vendors expenses Big Bazaar has heavily invested into transportation for the effective flow of goods • Transportation charges paid by the Big Bazaar to the transporter are 17500/month up to 1500 kilo meter
SCM TECHNOLOGY in Big Bazaar
• IT helps to maintain manufacturing and distribution activities
EIS and MIS reports generated for analysis and decision making
• Future Supply Chain Solutions (FSCS) provides all the SCM related latest technology to the business • FSCS has implemented a best-in-class WMS(Warehouse Management System), integrated with ARS(Automatic Replenishment System) • FSCS has used advanced network planning and analysis tool to model optimized supply chain network for Big Bazaar retail operations • The FSCS distribution centers are equipped with Imported Material Handling Equipments such as Reach Trucks, Stackers, Fork Lifts, Pallet Trucks, Roll Cages, RF Guns, Conveyors etc.
Thank You
doc_933135010.pptx