A retail chain differs from other industries in that it has sales occurring at a large number of locations, requiring inventory, point-of-sale, and accounting systems at each store. The implementation of an ERP system integrated the retail chain's stores, warehouses, and headquarters, allowing daily transactions, inventory updates, automatic price and promotion updates, and reconciliation of financial data across locations. This resolved issues around procurement, stockouts, duplicate sales reporting, and mismatching of cash and expenses.
MAHA Global and IPR: Do Actions Speak Louder Than Words?
Retail Supply Chain Management Systems
1.
2. A retail chain differs from other industries by nature of its number of
locations. A conventional
manufacturing industry has a production at a limited number of locations
and sales being
handled from a few more. However, a retail industry has sales from a large
number of
locations. If it is in the food and beverage business, you could say that its
production is also
being done at all locations. This means that material handling, production,
sales and
distribution as well as finance transactions are being conducted at all their
stores. Each store
requires an inventory control system, a Point of Sales system and an
accounting system
(maybe also a production system)
3.
4. 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
6. 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..
7. 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 marketplaces
Radio frequency Identification Detection
(RFID)
8. Vendor Managed Inventory (VMI)
MI 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
9. 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
10. 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
11. Collaborative Planning, Forecasting and
Replenishment (CPFR)
PFR allows cooperation across the supply chain, using a set of
processes and technology models.
roviding dynamic information sharing and integrating both demand and supply side
processes, for effectively planning, forecasting and replenishing customer needs
through the total supply chain.
dvantages of CPFR:
Increased responsiveness
Product availability assurance
Optimized inventory and associated costs
Increased revenues and earnings
– Improved relationships with trading partners
12. 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
13. 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
14. 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
15. #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
17. 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.?
18. Overview;-
Reckoner ERP, eReckoner and eReckoner retail was provided to
the client. Reckoner would
be used by the HO while eReckoner retail was to be used by the
Stores, Warehouses and the
regional offices.
19. The stores would conduct daily transaction in eReckoner retail using the in built POS
system.
The Reckoner POS system was an easy to use
simple interface. At the end of the shift,
The server would have checks built in to prevent
the same data from being uploaded twice.
This would also automatically update the stock at the stores for them to know their
current stock availability.
Vendor deliveries were now
automatically available to the HO for Bill Passing.
Any price changes or promotional schemes decided by the HO would be entered in
Reckoner.
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 cash
collection and expense figures for each store.
20. 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.