Indian Organized Retail Industry

Description
Some of the few selected organized retailers. The metrics used are inventory turnover ratio, asset turnover ratio and cash to cash cycle.

Indian Organized Retail Industry -Supply Chain Rating

Supply Chain Rating
We have selected Shoppers Stop to study its supply chain efficiency and a rating is given to it. Companies studied are
Shoppers Stop 2. Pantaloon 3. Vishal Mega Mart 4. Kouton Retail
1.

Methodology:

Metrics used to give the rating are
? Inventory turnover ratio ? Asset turnover ratio ? Cash to cash cycle

Inventory Turn Over

Supply Chain
• 4 technology led Dedicated Distribution Centers, covering approx. 300,000 sqft, supply merchandise to all stores across the country • No storage back area in any of stores • Distribution Center Management is outsourced to and managed independently by regional service providers • Regional Distribution Centers connected online to the central systems. • Partners have an online access to their sales at our stores through B Connect B

Cash-to-Cash Cycle Days

Asset Turnover Ratio

SCM Rating
PANTALOON ITR Rating 2.87 SHOPPER STOP 4.05 VISHAL MEGA MART 1.95 KOUTON RETAIL 0.00

Higher than Industry Average CTCC Rating 2.91

Leading 4.91

Laggard 1.46

Poor 0.00

Higher than Industry Average ATR Rating 2.33 Laggard

Leading 3.77 Leading

Laggard 2.57 Along With Industry

Poor 1.77 Laggard

SCM Rating

8.11

12.73

5.98

1.77

Recommendation:
? End-to-End integration required in wake of Hyper? ? ? ? ? ?

city and Home-Stop outlets. Warehouse Consolidation to gain efficiencies. Growth strategy has been extra conservative Reflected in land acquisition and no construction for past 5 years Expansion to other cities Since systems are already in place develop the real estate acquired At present private brands are being outsourced, Plan in house production facility for specific product lines



doc_405573555.pptx
 

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