pantaloons SCM

1. SUPPLY CHAIN

2. INTRODUCTION
• PANTALOON RETAIL IS THE FLAGSHIP CO. OF FUTURE
GROUP.
• IT IS LED BY IT’S FOUNDER AND GROUP CEO,MR. KISHORE
BIYANI.
• PRIL, IS INDIA’S LEADING RETAILER THAT OPERATES
MULTIPLE RETAIL FORMAT IN BOTH THE VALUE AND
LIFESTYLE SEGMENT OF THE INDIAN CONSUMER MARKET.
• HEADQUATERED IN MUMBAI.
• OVER 1000 STORES ACROSS 73 CITIES IN INDIA AND
EMPLOYEES OVER 30,000 PEOPLE.
• IT REGISTERED A TURNOVER OF 3000 CR FOR FY2009-10.

3. INTRODUCTION

4. INTRODUCTION
• THE 1ST PANTALOON WAS OPENED IN GARIAHAT IN KOLKATA
IN 1997.
• INITIALLY POSITIONED AS A FAMILY STORE, IT FINALLY
VEERED TOWARDS BECOMING A FASHION STORE WITH AN
EMPHASIS ON ‘YOUTH’ AND CLEAR FOCUS ON ‘FRESH
FASHION’-AN IDEA THAT HAS CAPTURED THE IMAGINATION
OF YOUNG INDIA IS THE TAGLINE OF PANTALOON.
• PANTALOONS STORES HAVE A WIDE VARIETY OF
CATEGORIES LIKE CASUAL WEAR,ETHNIC WEAR,FORMAL
WEAR,PARTY WEAR AND SPORTS WEAR FOR MEN,WOMEN
AND KIDS
• WATCHES AND SUNGLASSES, FOOTWEAR, HANDBAGS
,PERFUMES, COSMETICS AND FASHION ACCESSORIES.
• THE STORE HAS NOW GONE FOR THE ONLINE SHOPPING
PORTAL,THE PORTAL HELPS THE CUSTOMER TO SHOP
ONLINE AS WELL AS LOCATE THE NEAREST STORE.

6. • PANTALOON WAS REGULARLY OPENING STORES IN
WHY AT-ALL THE METROS AND THEIR WAS AN URGENT NEED
SUPPLY CHAIN FOR A RELIABLE ENTERPRISE WIDE APPLICATION
TO HELP RUN IT’S BUSINESS EFFECTIVELY.
NEEDED FOR • THE BASIC NEED WAS TO HAVE A ROBUST
TRANSACTION MANAGEMENT SYSTEM AND SUPPLY
PANTALOONS CHAIN MANAGEMENT SYSTEM TO RUN THE
OPERATIONS.
• IT NEEDS COLABORATION WITH
PARTNERS,SOURCING AND PROCUREMENT TO
FULLFIL ORDERS .
• IT NEEDS COST OPTIMIZATION,QUALITY,SPEED
BUYING PLANS,IDEA ABOUT MARKET DEMAND
PATTERNS CHANGE.
• IT INVOLVES HANDLING THE LOGISTICS OF MOVING
FINISHED GOODS FROM THE SOURCE INTO THE
STORES;OVERSEEING GLOBAL TRADE AND
PROCUREMENT REQUIREMENTS.
• SELLING GOODS ACROSS A VARIETY OF CHANNELS
TO CUSTOMERS, WHICH REQUIRES MARKETING
AND BRAND MANAGEMENT.
• CAPTURING CUSTOMER REACTIONS, ANALYSING
DATA AND USING IT TO OPTIMISE THE NEXT PHASE
OF DESIGN PROCESS.
• THE COMPANY WAS LOOKING FOR A SOLUTION
THAT WOULD BRING ALL OF ITS BUSINESS AND
PROCESS TOGHETHER.

7. EVOLUTION OF SUPPLY CHAIN
MANAGEMENT IN PANTALOONS
 CRITICAL COMPONENT OF SUPPLY CHAIN
PLANNING APPLICATION HELPS PANTALOON
MEETS RETAILER’S SERVICE LEVELS AND
MAINTAIN PROFIT MARGINS.
 PANTALOON HAS DEVELOPED INNOVATIVE
SOLUTIONS LIKE PERFORMANCE
MANAGEMENT,FREQUENT SALES
OPERATION MANAGEMENT,DEMAND
PLANNING,INVENTORY
PLANNING, PRODUCTION PLANNING,LEAN
SYSTEMS AND STAFF.
 GOOD SUPPORT FROM MANAGEMENT.

8. MAJOR STEPS TAKEN AT
BEGINNING
• USE OF MORE ARGRESIVE EXPAINSION STRATEGY.
• IN 2004,PRIL MODIFIED ITS OPERATIONAL PLANNING AND
INVENTORY MANAGEMENT.
• INCREASE IN OPERATIONAL EFFICIENCY.
• STRENGTHENED ITS BACK-END SUPPLY.
• INCREASE CHAIN AND SOURCING CAPABILITIES TO REDUCE COST.
• IN MAY 2005,PRIL INTRODUCED INFORMATION TECHNOLGY IN SCM.
• INVESTED 1 BILLION IN I.T. FOR NEXT 3 YEAR.
• RESTRUCTURED WAS MADE IN HARDWARE, SOFTWARE AND
BUSINESS CONNECTIVITY.
• VIRTUAL PRIVATE NETWORK (VPN) TO HANDLE INHOUSE TRAFFIC
OF DATA,VOICE AND VIDEO.
• PARTNERSHIP WITH SAP FOR ADVANCED PLANNING TOOLS AND
PROVIDING SOFTWARE SOLUTION.
• INTRODUCTION OF RFID.

9. THE MATERIAL FUNCTION
• INTRODUCTION OF INFORMATION
TECHNOLOGY IN SCM.
• THE ADVENT OF MATERIAL
REQUIREMENT PLANNING AND
MATERIAL RESOURCE PLANNING BOTH
HELPS IN INCOMING MATERIALS AND
OUTGOING FINISHED GOODS AS A
SYSTEM.
• USE OF B2B AND E-COMMERCE HELPS
IN PROCESSES FOR INDIRECT MATERIAL
AND REQUIREMENTS.

10. PROCUREMENT
• IT IS KNOWN AS PURCHASING FROM THE
SUPPLIER AT THE LOWEST COST
• CENTRAL PROCUREMENT SYSTEM-
– EACH REGION HAS A REGIONAL HUB.
– UNDER EACH REGIONAL HUB THERE ARE
SEVERAL DISTRIBUTION COLLECTION CENTRE.
– THE FUNCTION OF EACH DCC IS TO DISTRIBUTE
PRODUCT ACROSS PANTALOON RETAIL STORE.
– THE TOTAL PRODUCT SELECTION AND
DISTRIBUTION IS HANDLED BY THE DCC AND
THE STORE MANAGER.

11. MATERIAL PLANNING
• EXTENSIVELY USED FOR FULLFIL THE
GAP OF REQUIREMENT.
• IT CONNECTS BETWEEN THE
SUPPLIER AND DISTRIBUTION
NETWORK.
• GOOD MATERIAL HANDLING,
STORAGE AND MOVEMENT OF
GOODS.

12. INVENTORY MANAGEMENT
• IT PROVIDES A BUFFER AGAINST THE
DIFFERENCE IN DEMAND RATES AND
PRODUCTION RATES.

13. RECEIVING AND
DESPATCHING
• IT IS OTHERWISE CALLED IN-BOUND AND OUT-BOUND
LOGISTICS.
• IT IS IMPORTANT FOR RETAINMENT OF BRAND
VALUE, BECAUSE IT IS THE ENTRY AND EXIT POINT.
• EVERY STORE HAS A TRAINED SALES-FORCE.THEY
INVLOVE IN SELECTION OF MERCHANDISE WHO WERE
BEST SUITED FOR THE CUSTOMER.
• THEY INVLOVE IN CREATING AWARENESS ABOUT
VARIOUS OFFERS.
• PANTALOONS PROVIDE CUSTOMER WITH
REPURCHASE TRAIL SERVICE.
• ALSO FOR POST PURCHASE SERVICE THEY HAVE A
PROVISION FOR GIFT PACKING.
• THEY GUIDED CUSTOMER THROUGH THE
APPROPRIATE CHANNELS TO SOLVE THE PROBLEM.

14. STORES
 THE ATMOSPHERE IS A VERY
IMPORTANT FACTOR TO INFLUENCE THE
PROCESS.
 DECORATING THE STORES ACCORDING
TO THE MOOD OF THE
CUSTOMERS,TIME OF THE
DAY,FESTIVALS ETC.
 USE OF GOOGLE LIKE DEVICES TO
ASSESS THE MOST ATTRACTIVE
POSITIONS FOR PRODUCTS IN THE
STORE.

15. MATERIAL HANDLING
• Future logistics now handles 2.5 millions
SKU(stock keeping units)a day across the Future
Groups various retail formats across the country
• The biggest driver in a consumer logistics is going
to be zero defect in managing the supply chain
• Zero defect can only be achieved through vertical
integration across the entire supply chain-from raw
material supply, supply, wholesale , retail. The
different parts of the supply chain will no longer be
able to work in silos

16. TRANSPORTATION AND
LOGISTICS
• Future logistics initially aimed at handling the
supply chain logistics of the group only.
However sensing immense opportunity in this
area ,the company is now looking to offer its
services to its vendors
• The thrust at present will be on modes of
surface transport like roads and rail only.
However at a latter stage ,sea and air modes
might also be considered as per the
requirement

17. RELATIONSHIP WITH
SUPPLIER
 Future group derive significant
economics of scale in managing their
supply chain. With more then 170000
products, the company maintain a strong
supplier relationship in a partnership
mode, avoiding the exploitative supply.

18. IMPACT ON MATERIALS
FUNCTION ON
• PROFIT
• DEVELOPMENT
• RELATIONSHIP
• MARKETING
• QUALITY MANAGEMENT
• FINANCE AND ACCOUNTING
• INFORMATION TECHNOLOGY

19. INTEGRATED LOGISTICS
MANAGEMENT
• Scientific management.
• Data processing technology.
• Customer satisfaction.

20. STAGES IN ILM
• STAGE1(PHYSICAL DISTRIBUTION)
• STAGE2(INTERNAL LINKAGE)
• STAGE3(EXTERNAL LINKAGE)

21. FUTURE OF PANTALOONS
• In the fierce of competitive
pressure, Pantaloons has recognized the
value of building its own stores as brands to
communicate quality as well as value for
money
• They have developed a sustainable
competitive advantage by translating core
values combining products, image and
reputation into a coherent retail brand
strategy

22. CONCLUSSION……
• With the generous use of global and local
experiences, Indian retailers are going to
improve their bottom lines with efficient
management of logistics and supply chain
• At the same time Indian retailers like future
group and reliance retail are also going to
show the world how it can be managed in
a more innovative and efficient manner

23. KING OF INDIAN RETAIL
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