Description
Spatial Convenience: Strategically locating the outlet with distribution networks and warehouses located proximally.
Supply Chain Strategies in Retail
Bulk-Breaking: Orders can be done in smaller lots with a good understanding with the supplier.
This can be achieved by following ways: -
? Spatial Convenience: Strategically locating the outlet with distribution networks
and warehouses located proximally.
? Supplier holds inventory.
Vendor Managed Inventory: In this case, the vendor himself is given the responsibility to handle
the inventory. A space for the vendor is rented in the outlet, and he takes care of the shelves and
the space. It is a 2-way agreement wherein the vendor gets the space to market his product by
interacting one-to-one with the customers.
Point of Sale Information System: As soon as one stock keeping unit moves out of the store
when purchased by a customer, the information readily flows to the supplier.
? He is given access to the inventory database.
? A re-order point can be imposed based on consumption pattern and the supplier is asked
to fill the shelf upon inventory reaching the re-order point.
SRM - Supplier Relationship Management:
? Relationship with supplier should not be a marriage of convenience. Supplier has to act in
ways more than what is required.
? By providing special offers, discounts and incentives, the supplier savors the relationship.
This also serves as a promotion strategy for the outlet.
doc_233662332.docx
Spatial Convenience: Strategically locating the outlet with distribution networks and warehouses located proximally.
Supply Chain Strategies in Retail
Bulk-Breaking: Orders can be done in smaller lots with a good understanding with the supplier.
This can be achieved by following ways: -
? Spatial Convenience: Strategically locating the outlet with distribution networks
and warehouses located proximally.
? Supplier holds inventory.
Vendor Managed Inventory: In this case, the vendor himself is given the responsibility to handle
the inventory. A space for the vendor is rented in the outlet, and he takes care of the shelves and
the space. It is a 2-way agreement wherein the vendor gets the space to market his product by
interacting one-to-one with the customers.
Point of Sale Information System: As soon as one stock keeping unit moves out of the store
when purchased by a customer, the information readily flows to the supplier.
? He is given access to the inventory database.
? A re-order point can be imposed based on consumption pattern and the supplier is asked
to fill the shelf upon inventory reaching the re-order point.
SRM - Supplier Relationship Management:
? Relationship with supplier should not be a marriage of convenience. Supplier has to act in
ways more than what is required.
? By providing special offers, discounts and incentives, the supplier savors the relationship.
This also serves as a promotion strategy for the outlet.
doc_233662332.docx