final rahul project

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PROJECT REPORT

ON

SUPPLY CHAIN MANAGEMENT OF VISHAL

MEGA MART IN JALANDHAR

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE

DEGREE OF MBA OF

SUBMITTED TO:SUBMITTED BY:-

MR. VISHAL CHOPRA RAHUL JAISWALREG.NO.-10901286

MBA(RETAIL)- IIIrd SEM (LSM)

LPU, PHAGWARA


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ACKNOWLEDGEMENT

It is indeed of great moment to pleasure to express my senses of per found gratitude &

indebtness to all the people who have been instrumental in making my training a rich

experience. The successful task would be incomplete without the mention of the people whose

constant guidance and encouragement crown all efforts with success.

I express my sincere gratitude to my industry guide Mr. VIKASH AHUJA (STORE

MANAGER) for giving me an opportunity to do my summer training at his esteemed

organization VISHAL MEGA MART.

I would like to extend my heartiest thanks to my corporate guide Mr. VIKASH AHUJA

(STORE MANAGER) who took out time from his busy schedule to brief me and provide me

with valuable suggestions from time to time.

I feel highly indebted to Mr. MANISH RAJPUT (TRAINING GUIDE) and Mr. Ashwani

Panesar (TRAINING COORDINATOR) , Lovely Professional University. They have always

been the source of inspiration.

I would also like to pay my acknowledgement to all respondents for taking out time from their

busy schedule and providing me with relevant information which contributed significantly in my

project analysis.

(RAHUL JAISWAL)


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TABLE OF CONTENTS

1 ACKNOWLDGEMENT

2 INTRODUCTION

3 VRPLs BUSINESS

4 VRPL Business Processes

5 VISHAL Apparels Brand

6 STORE

7 ROLE OF SUPPLY CHAIN

MANAGEMENT

8 LITRATURE REVIEW

9 OBJECTIVE OF STUDY

10 RESEARCHMETHODOLOGY

11 COLLECTION OF DATA

12 FINDINGS AND

RECOMMENDATIONS

13 CONCLUSION

14 REFERENCES

15 ANNEXTURE


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INTRODUCTION OF VISHAL MEGA MART

The glory of Vishal Groups success is the ascent it has come to accomplish in the field of

manufacturing and retailing of readymade garments. The credit for this radiance goes to its

dynamic of directors Mr. Ram Chandra Agarwal &Mrs. Uma Agarwal who have transformed

their foresightedness into an unending saga of growth. Identifying the immense market in

fashion garment for the masses the Group has actually established benchmarks that many others

are inspired to follow. Not resting on its laurels, the Group is busy identifying new avenues of

growth and its companies are busy implementing the expansion plans to cash in on emerging

potentials in the changing business environment of modern Indias enterprise.

The jewel in Vishal Groups crown is its flagship company Vishal Retail Ltd. a company

engaged in Hyper market stores with an average area of 25,000 to 30,000 sq. ft. through an

impressive chain of 172 fully integrated stores in spread over the area of more than 24,00,000 sq.

ft. in around 110 cities across India in 24 states. The turnover of the company for 09-10 was

1105 Crore . Maintaining the highest standards in quality and design, these stores have come to

offer the finest fashion garments at down-to-earth price structure. A fact that is better visible in

the constant flow of shoppers all through the year. Under the title of Vishal Mega Mart these

stores have emerged as the regular haunts for the bargain-hunters and fashion enthusiasts alike.

The saga of Vishal Group dates back to 2001 when its directors foresaw the emerging potentials

in the retail industry which is indeed the largest sector in the global economy. Imbibing its

innovative concepts and techniques the Group identified the vast scope of growth in retailing for

the common man. Its stores have gained an enviable prominence as being the ideal store for the

common man where an extensive variety and quality is offered at a very, very reasonable price

structure. The Groups expertise in the field of retail marketing over the years and its focus on


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regions, cities and exact customer preferences have earned the Group an undisputed leadership

status to Vishal Group.

FOUNDER OF VISHAL MEGA MART

Mr. Ram Chandra Agarwal Mrs. Uma Agarwal

DETAILS OF DIRECTORS:-

Mr. Ram Chandra Agarwal, 43 years, is VRPLs Chairman and Managing Director. He holds

a bachelors degree in commerce from St. Xaviers College,

Kolkata. Mr. Agarwal has more than 20 years of experience in the retail industry and has beenwith VRPL since their inception in 1997. He started the business under the name of Vishal

Garment with a small store at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for

the development of the value retailing industry in India and is well known for his business

acumen.

Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. She holds a bachelors degree

in arts. Mrs. Agarwal has more than 7 years of experience in the retail industry. She has been

associated with accounts department of VRPL.

Mr. Surendra Kumar Agarwal, 46 years, is an executive Director of VRPL. He holds a

bachelors degree in commerce. Mr. Agarwal has more than 17 years of experience in the retail

industry. He has been associated with store development and management at various locations of

VRPL.
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Mr. Bharat Jain, 45 years, is an independent Director of VRPL. He holds bachelors degree in

commerce. Mr. Jain is engaged in the business of leather garments and accessories and has more

than 23 years of work experience. Mr. Jain joined VRPL Board on May 8, 2006.

Mr. RakeshAggarwal, 44 years, is an independent Director of VRPL. He holds a masters

degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding

industry has more than 20 years of work experience. Mr. Aggarwal joined VRPL Board on

October 31, 2006.

OUR PROMOTERS AND GROUP COMPANIES

Our Promoters

The following individuals are the Promoters of our Company:

a). Mr. Ram Chandra Agarwal;

b). Mrs. Uma Agarwal; and

c). Mr. Surendra Kumar Agarwal.

The following companies are the Promoters of our Company:

a). Unicon Marketing Private Limited;

b). Ricon Commodities Private Limited; and

c). Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our Company:

a). Mr. Ram Chandra Agarwal (HUF)

Name of Shareholders & Number of Shares % of shareholding

1. Unicon Marketing Private Limited


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2. Ricon Commodities Private Limited

3. Mr. Ram Chandra Agarwal

4. Mrs. Uma Agarwal

Acquisition of Business from M/s Vishal Garments and M/s The Vishal Garments

Vide a business purchase agreement dated November 23, 2001 executed betiten their Company

and Mr. Ram Chandra Agarwal (carrying on proprietorship business in the name of M/s The

Vishal Garments) and Mrs. Uma Agarwal(carrying on proprietorship business in the name of

M/s Vishal Garments), it acquired the business of M/s The Vishal Garments and M/s Vishal

Garments, and the said businesses tire transferred to their Company as a going concern with

effect from December 15, 2001.

Acquisition of manufacturing unit from M/s Vishal Fashions Private Limited

Vide a business purchase agreement executed batten their Company and M/s Vishal Fashions

Private Limited; it acquired the business of manufacturing of readymade garments as a going

concern with effect from March 31, 2003. Thier Company itnt into backward integration by

acquiring a manufacturing unit for readymade garments.

Acquisition of manufacturing unit from M/s Vishal Apparels

Vide a business purchase agreement dated March 31, 2003 executed batten their Company and

Mr. Ram Chandra Agarwal (HUF) (carrying on its business in proprietorship in the name of M/s

Vishal Apparels), it acquired the manufacturing unit of M/s Vishal Apparels and the said

manufacturing unit was transferred to their Company as a going concern with effect from March

31, 2003.

Major Events:

A chronology of some key events in the history of the Company is set forth below:


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Year---- Milestone

2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship firm Vishal

Garments & the Vishal Garments opened first store outside Kolkata.

2002-- Opened first Store in Delhi

2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing unit in Gurgaon.

2004--Started thier largest store of at Mathura Road, New Delhi having an area of 80,000 square

feet nominated for the Images Retail Awards 2004

2006--Thier Company was converted into a public limited company 103 implementation of

production and retail module of SAP Broadband connectivity with each and every location

Increased thier presence to an aggregate of 17 States.

2007-- Increase in number of stores to 50 spread across in 18 States.

VRPLs BUSINESS:-

VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL acquired

the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels.

Subsequently, with evolution of retail industry in India and change in consumer aspirations,

VRPL diversified their portfolio of offerings to include other retail goods. Currently, VRPL sell

ready-made apparels and a wide range of household merchandise and other consumer goods

such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, home

furnishing, beverages, drinks, gift and novelties.

VRPL follow the concept of value retail in India. In other words, VRPLs business approach is

to sell quality goods at reasonable prices by either manufacturing themselves or directly

procuring from manufacturers (primarily from small and medium size vendors and

manufacturers). VRPL endeavor to facilitate one-stop-shop convenience for their customers and


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to cater to the needs of the entire family. VRPL believe this concept has helped them grow to

their current size within a short time frame of 8 years.

In order to reduce costs and take advantage of economies of scale VRPL have embarked on

backward integration of their products. VRPLs apparel manufacturing plant is located at

Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up seven regional

distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur

(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi.

Further, VRPL have focused on developing a cost and time efficient distribution and logistics

network, which currently comprises seven distribution centers and a fleet of trucks for

transportation.

VRPL achieved total sales of Rs. 1005.31 cr for fiscal 2008, as opposed to a turnover of

Rs.602.65 cr for fiscal 2007 and Rs. 288.46 million for fiscal 2006. During the same period

VRPLs profit after tax was Rs. 40.64 cr, Rs.25.07 cr and Rs. 12.39 cr, respectively.

VRPL Business Processes:-

VRPLs business process can be summarized as below:

Establishment of Stores:

Selection of locationIn selecting location for a new store, VRPL start by identifying the city/town. VRPL target

primarily cities/towns which may be classified as Tier II or Tier III cities. In this regard, an

analysis of the demography, literacy levels, nature of occupation and income levels. Within a

city/town, VRPL target locations with good infrastructural facilities such as easy accessibility,

provision for water, electricity, parking, security and other basic amenities. VRPL prefer to

locate their stores in areas where real estate is available at reasonable prices. The efforts of

VRPLs retail business are targeted towards families having total income which can be classified


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under the lower middle and middle income groups. Accordingly, VRPL plan their strategy

to search for areas within cities where such customers are domiciled in large numbers and make

efforts to locate themselves within the reach of such customers.

VRPL believe that adoption of standard formats for their stores has led to their brand

establishment and identification among their customers and will increase their base of loyal

customers. In pursuance of this, they have adopted standard parameters for store planning and

establishment. For ensuring standardized formatsof their stores, VRPL consider various factors,

such as internal and external dcor and colour schemes, allocation of store space, stock mix and

pricing and accounting methods.

InsuranceVRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz, Royal

Sundaram and IFFCO-TOKIO for their existing stores, distribution centers, manufacturing

facilities and trucks. VRPL insurance policies include comprehensive coverage for electronic

equipment, fire and special perils and burglary. Further, VRPL has filed a claim of Rs. 22.50

million on account of fire in their store at Meerut as on July 7, 2006. In this regard, they have

received Rs. 7.50 million as an interim payment.

FactoriesVRPLs existing manufacturing facilities are located at Plot No. 224, Phase 1 UdyogVihar,

Gurgaon, for which they have leasehold interest until May 4, 2009. In addition, VRPL have

recently acquired freehold interest in relation to a land admeasuring 7.24 acres in Dehradun,

Uttaranchal, where they are exploring the possibilities for establishment of another

manufacturing facility.

Other PropertiesVRPL have recently acquired freehold interest in relation to a land admeasuring 82,830 square

feet in Hubli, Dharwad.

Merchandise PlanningVRPLs merchandise planning is based on the concept of category management rather than

traditional brand management practices.


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Apparels and Non Apparels

Under category management for, say, apparels, VRPL create and cater to products across length

and breadth of a category at different price points, fabrics, designs, shapes, seasons, colors and

sizes. VRPL formulate annual merchandising plan for each division of merchandise taking into

consideration factors such as past sales data, regional customer tastes and preferences, number of

stores (established and proposed), likely fashion and trends, in-house production resources,

vendor management and price. Each division is further divided into major categories (for

instance, mens apparel as a division is further divided into three major categories, namely,

upper, lowers and sports and ethnic wear). These major categories are in turn segregated into

various subcategories. For example, mens upper as a major category would be further divided

into several sub-categories such as formal shirts, casual shirts, party wear etc. Each sub-category

consists of pre-defined SKUs, which are classified on the basis of price point, brand, style,

pattern and size.

VRPL draw annual sales projections for different SKUs and, accordingly, ascertain their

sourcing requirements. Based on such information and lead time estimates for supplies, purchase

orders with delivery schedules are issued. The inventory position for each SKU is reviewed

fortnightly taking into account the actual sales and variations from the budgeted plans. Regularvisits to the stores are made by the category merchandising team to identify the slow-moving-

SKUs and explore the options to expeditiously dispose of them.

For certain non apparel categories, their merchandise planning and scheduling also depends on

introduction of new products and schemes by the vendors. For instance, if a branded home

appliance manufacturer replaces a product with a new version, then their planning for the

product would need to be reviewed based onthe acceptability of the new version.

In-house Manufacturing

VRPL benefit from backward integration and in-house manufacturing of part of the apparel

products sold in their stores. Through their manufacturing capabilities, VRPL is able to attain

relative independence from intermediaries with a competitive advantage in terms of value and

cost. VRPL use their manufacturing strengths to focus on enhancing product knowledge and


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their experiences from manufacturing enable them to negotiate better terms from the vendors

and job workers.

VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The manufacturing

plant is well-equipped with fully automatic machines for fusing, buttoning, embroidery and welt

pocket-making operations. The factory has a capacity to manufacture 5,000 pieces per day. The

plant was commissioned in 2004 and achieved a capacity utilization of 80%. It has 450 machines

and is operated by 500 workers. Further, VRPL are exploring the possibilities for establishment

of another manufacturing facility, for the purposes of which they have acquired certain portions

of land admeasuring 7.24 acres in Dehradun, Uttaranchal.

In addition to in-house manufacturing, they have outsourced some parts of the manufacturing to

job workers who work in their factory premises. VRPL undertake quality control measures by

way of random sampling to ensure the pre-determined quality standards are met. To verify that

the quantity of supplies is as per the order, they undertake count-check for every receipt of the

goods.

VRPLs manufacturing team works closely with their design team to understand trends, develop

products, value engineer and finally create season wise collectionthat cater to regional tastes.

Purchasing

Purchasing or vendor management assumes critical importance in retail business where one has

to deal with multiple products. VRPL have in place a vendor management system, under which

they identify vendors all over the country and overseas and seek to develop alliances and

arrangements with them. They regularly interact with the vendors and share information such

that the vendors remain familiar with their goals and targets. It has been their strategy to procure

goods from small and medium sized vendors and manufacturers, which they believe has led to

reduction in the cost of goods they sell and increase in their profitability.

Upon ascertaining the procurements needs based on each SKU, VRPL explore the various

options for sourcing the products. They continuously strive to procure goods from the place of

origin to reduce the costs and control the quality. For identifying the vendors, VRPL assess the


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various possible options on factors such as capacity, credibility in the market, quality awareness

and experience.

After identifying the vendors for the goods, VRPL place purchase orders based on their SKU-

wise plan, estimated lead time of each vendor and quantity to be procured from each vendor.

VRPL follow a policy of payment on delivery to negotiate better prices with the vendors and in

certain cases they also release payments in advance. To ensure quality of supplies, VRPL check

quality by way of random sampling at the time of receipt of the goods. To verify that the

quantity of supplies is as ordered, they undertake count-check for every receipt of the goods. For

FMCG products, VRPL procure from large as well as small and medium size

Manufacturers. For procurement from the large manufacturers or their distributors,

They endeavor to enter into formal arrangements for supply of products to all

VRPL stores, such that they are able to derive fixed margins from sales of such products,

irrespective of the locations. Under these agreements, they benefit from special discretionary

discounts and offers directly from the manufacturers or their distributors.

VISHAL Apparels Brand

Vishal Mega Mart is one of Indias fastest growing retail chains.. The

chain currently has 183 company stores in 24 states / 110 cities in India. The Vishal brand is


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known for great modern style for men, women and children. Vishal offers high level fashion

styling. Since 1986, our name has been synonymous with quality, value and fashion integrity.

We offer an unparalleled collection of clothes for the entire family. Each garment is hand

selected for quality and contemporary styling. Vishal manufactures majority of its own

garments and out sources some under its direct quality supervision. This enables us to offer the

lowest possible and most reasonable prices.

Our goal is to provide a range of fashion wear to suit every pocket. Our product mix represents

the most current fashion trends in tops, bottoms, formals and accessories for men, women and

kids. Our courteous staff will ensure that consumers get a perfect fit.

Popular Brands are:

Zeppelin : Mens Shirts & Trousers Fizzy Babe : Ladies & Kids Girls

Kitaan Studio : Mens Shirts & Trousers Jasmine : Ladies & Kids Girls

Blues & Khakis : Mens Trousers Zero Degree : Kids Boys

Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts

Chlorine : Mens Shirts Massa Bay :Mens Trousers

&Bermudas

Fume :Mens Shirts, T-Shirts,

UnderGarments.

STORES

ANDHRA PRADESH (3 Stores)

ASSAM (6 Stores)

BIHAR (6 Stores)

CHATTISGARH (1 Store)


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DELHI (12 Stores)

GOA (1 Store)

GUJRAT (4 Stores)

HARYANA (12 Stores)

HIMACHAL PARDESH (4 Stores)

JAMMU & KASHMIR (4 Stores)

JHARKHAND (6 Stores)

KARNATAKA (2 Stores)

MADHYA PRADESH (9 Stores)

MAHARASHTRA (10 Stores)

MEGHALYA (1 Store)

NAGALAND (1 Store)

ORISSA (7 Stores)

PUNJAB (15 Stores)

TAMIL NADU ( 1 Store)

UTTAR PRADESH (34 Stores)

UTTARAKHAND (6 Stores)

WEST BENGAL (5 Stores)

KERLA(1 Store)

Role of Supply Chain in Indian Organized Retail


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The role of supply chain in Indian organized retail is very significant for on it depends the

growth of this sector. The Indian Supply Chain Council have been formed to explore thechallenges that a retailer faces and to find possible solutions for India.

The role of supply chain in the organized retail sector in India should be a shelf-

centric partnership between the retailer and the manufacture for this will create supply chains

that are loss free. This will also give rise to top and bottom line growth. In the organized

retail sector in India the presence of fresh produce (vegetables and fruits) is very small. This

is so for the nature of supply chain is very fragmented. This shows the important role of

supply chain in the organized retail sector in India. In the organized retail market in India the

role of supply chain is very important for the Indian customer demands at affordable prices a

variety of product mix. It is the supply chain that ensures to the customer in all the various

offerings that a company decide for its customers, be it cost, service, or the quickness in

responding to ever changing tastes of the customer. The infrastructure in India in terms of

road, rail, and air links are not sufficient. And so warehousing plays a major role as an aspect

of supply chain operations. To overcome these problems, the Indian retailer is trying to

reduce trans portion costs and is investing in logistics through partnership or directly. TheIndian organized retail sector is growing so the role of supply chain becomes all the more

important. It should become all the more responsive and adaptive to customers demand.

There is also need for the supply chain to be more cost efficient and collaborative to win the

immense competition in this sector. The role of supply chain in Indian organized retail has

expanded over the years with the boom in this industry. The growth of the Indian retail

industry to a large extent depends on supply chain, so efforts must be made by the Indian

retailers to maintain it properly.

In vishal mega mart I learn three things.

1- SUPPLY OF GOODS

2- SUPPLY OF INFORMATION

3- SUPPLY OF CASH

SUPPLY OF GOODS- Thereare manysupplier toVishal mega mart. They have many


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distributers, dealers. Vishal have own 200 vehicles. AndVishal use always own

vehicles. AndVishal have contract with D.T.C Transport company. Vishal have two

types of business.

1-B2C Means Business To Customer

2-B2B Means Business To Business

Vishal always manufacture mostly product. And sell this product in their retail

store.SUPPLY OF INFORMATION- In Vishal mega mart used to SAP software to

supply of information. Through this technology Vishal exchange the information. If is

there any problem regarding product, price, damages they send mail through this

technology.

SUPPLY OF CASH- In supply of cash customer buy the product through cash. Means

customer pay to retailer and retailer pay to distributer then after distributer pay to

manufacturer and at last manufacturer pay to supplier. That is the supply of cash.

Apparel Manufacture

The basic raw materials required for the manufacturing process of apparels includes fabrics

and accessories. VRPL merchandising teams source fabrics from local manufacturers in India

depending upon their production plan. VRPL also source fabrics from the place of origin.

VRPL source various other components and accessories from vendors in various parts of the

country and also import them from China.

Inventory Management, Distribution Network and Logistics

VRPLs distribution network and logistics encompasses all activities to ensure that goods are

dispatched in right quantities and at right time to reach stores with sufficient time in hand to

promptly cater to customer demands and optimization of inventory position.

They have built a system to monitor the inventory position on a real-time basis at each store,

under which a stock requisition or delivery order is generated when pre-determined stock or

re-order levels are reached. The re-order levels for stores are determined based on factors

such as display levels, lead time for replenishment and average daily sales. VRPL review

these re-order levels on continuous basis to factor in variances in demand based on seasons,


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trends and promotional schemes.

VRPL have seven distribution centers over approximately 385,033 square feet. These

distribution centers are located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur

(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and

Mahipalpur (New Delhi). VRPL have clearly demarcated the stores which will be serviced by

each distribution center. The reorder levels for distribution centers are ascertained on the

basis of factors like average daily sales of all the stores services, lead time for replenishment

and buffer stock, which caters to both the existing and proposed stores to be fed. As for the

stores, they regularly review these re-order levels.

VRPLs distribution centers and stores are connected through company-wide virtual network

connection through broadband which helps to efficiently manage their network of stores and

distribution centers throughout the country.

They primarily utilize their own vehicles to transport the inventory to their stores from the

distribution centers. In addition, VRPL use the services of logistic solution providers

including low cost transport service providers in order to deliver products on time to VRPL

stores and optimize transportation costs. Distribution centers operations have been

streamlined through the standardization of racking system, layouts and implementation of

automatic replenishment system.

Under arrangements with some of their merchandise manufacturers, they receive payment on

account of display of their products.

LITRATURE REVIEW

1- RETAIL NEEDS INDUSTRY STATUS MORE

The positive impact of FDI on agriculture, supply chain management, infrastructure, food

processing, and so on, is given as a fall out of retaildevelopment. However, these also happen to

be independent business segments and development of these cannot be the only justification for

retail FDI. Inthat context, why bother about FDI at all? The obvious expectations from FDI are


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that it leads to investments which mean funds, technology and processes. If retail is defined as

an industry and given sops, such as how IT was given or for that matter so many other

industrieshave been given, funding would not be an issue. Many bottlenecks faced by retailers

would ease. Most importantly, this would not benefit just the large corporate chains but also

smaller retailers.

2- SATISFYING THE RETAIL CUSTOMER

Retailers are trying to build more customer-centric offerings and are learning to use technology

to improve merchandising and pricing. The new emphasis has served to reposition retail IT

executives from back-office order takers to business strategists, intimately aware of how

technology can improve the customer experience and drive bottom-line growth. CrutchfieldCorp recently revamped its Web site and call centers to accommodate Spanish-speaking

customers. Retailers are also using technology tools in supply-chain and replenishment

management. RFID has been keyin supply-chain management with Wal-Mart's mandate to have

all suppliers tag pallets and cases by the end of this year. Tesco PLC recently piloted a project to

tag high-end DVDs with RFID. With the use of RFID tagging on DVDs, Tesco's pilot projects

were showing a 50% improvement in stock availability.

3- Supply chains enter'Platform' era

These are exciting times for retail supply chain managers. They finally are starting to see real

progress against the once-competing goals of high inventory availability and better financial

returns. Thanks to sophisticated technology solutions, retailers can reduce stock levels and still

keep customers happy. Supply chain managers no longer have to make decisions about

inventory, orders, transportation and distribution in isolation without considering data,

workflows and inputs from each discipline in the supply chain. Platform Thinking replaces silo

thinking by blending insight and execution capabilities across supply chains and ecosystems to

deliver advanced levels of visibility, agility and customer responsiveness. Platform Thinking

also closes the communication gap between the transportation department and warehouse

management.

4- In the Store or at Your Door

The consumer packaged goods (CPG) industry is large and very diverse. According to

Investopedia, the consumer packaged goods industry in North America is valued at


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approximately $2 trillion. CPG products are sold through multiple sales channels and change

rapidly based on consumer preferences and economic conditions. Many CPG manufacturers

partner with third-party logistics companies (3PL) to help them manage the complexities of their

supply chain. One bright spot in the retailmarketplace continues to be e-commerce or the direct-

to-consumer channel. Many CPG companies offer products directly to consumers and many

others are planning to augment their store sales with e-commerce. As the CPG business

continues to thrive and change, manufacturers will increasingly look to logistics providers to

help them adapt, drive supply chain improvements and maintain profitability. Supply

chainmanagement solutions providers will need to identify trends and provide strategic insight to

CPG manufacturers in order to remain their trusted partners.

5- Managing Risk

Characteristic of the classic risks associated with putting all your eggs in one basket, retailers

should consider the repercussions if a vendor fails to deliver seasonal product on time, and there

are no other vendors in play to cover the slack. One way that retailers have addressed risk

management and exceptions management inthesupply chain is to increase the virtual

surveillance and communications with global trading partners. Many new companies signed up

for the software-as-a-service model, and existing participants increased their usage. Charming

Shoppes, the Bensalem, PA-based specialty apparel retailer, was one longtime retail customer of

the GT Nexus import operating platform that not only renewed but increased its commitment to

use the service in 2009.

6- Strong Supply Chain Vital to a Retailer's Success

These days, retailers can't get by on just one level of transportation service -- nor should they be

expected to. They want and need a menu of services to choose from, and everyone in the

supporting supply chain must step up to provide innovative choices. Whether it is sourcing

product or turning inventory, making the most of supplychain capabilities and managing

logistics is important to any retailer's bottom line. To meet these challenges, transportation and

logistics companies should provide a variety of services, from third-party consolidation in Asia

to distribution solutions in Europe. The most critical requirement in the retail industry, of course,


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is on-time delivery. Consistent transportation service, without fail, is the requirement. For

logistics to run smoothly, communication and tracking are also required.

7- Retailers turning to SCM

According to the Retail Industry Leaders Association and Auburn University's 2009 State of the

Retail SupplyChain study, leading retailers are turning to their supply chains to improve

inventory management, control costs and maintain first-rate customer service. The recently

released report highlights the increasingly important role of supply chain management in the

current retail environment and brings together executives from more than 40 of the nation's

leading retailers to examine the year's current trends, best practices and key issues. Steve

Banker, service director for supply chain management with Boston-based ARC Advisory Group,discusses the study.

8- Five Keys toSupply Chain Success in India

As India's economy continues to expand (it grew at a rate of 6.8% in 2008, and is expected to

dip only slightly to 5.5% in 2009), global manufacturers are adjusting their supply chain

operations by focusing on balancing costs and services. To keep pace with India's growth rate,

companies have been focused on building production capabilities, distribution networks and

retail outlets, resulting incomplex supplychains with long lead times, explains Stephen

McNulty, regional vice president, Asia Pacific, with supply chain solutions provider JDA

Software. McNulty offers the following five strategies for managing demand in India's

emerging market: 1. ensure a clear understanding of local principles, customs and barriers, 2.

establish constant communication, 3. develop comprehensive procedures and processes, 4.

ensure the quality of input information, and 5. identify and integrate the right professionals and

insist on teamwork.

OBJECTIVE OF STUDY

1- To know the current supplier.

2- To understand criteria of supplier selection.

3- To understand the key area of company through which it good supplier relation to have the

strong supply chain.


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4- To recommended the strategic for future to increase the supplier satisfaction and to have the

strong supply chain.

5- To know the supply of information.

RESEARCHMETHODOLOGY

The objective of the study was accomplished by conducting a systematic market research.

Market research is the systematic design, collecting, analysis, and reporting of data and findings

that are relevant to different marketing situations facing the company.

COLLECTION OF DATAPrimary data and secondary data. Being a firm in the retail sector, data gathering involved the

usage of both primary and secondary data though there was an extensive usage of primary data.

Well-structured questionnaires were prepared for the dealers. The questionnaire contained both

open ended and close ended questions. The main objective was to get an insight into how people

think rather than measuring how many dealers think in a particular way.

Secondary data- collected from various journals, and websites.

A sample of 20 dealers is selected for this survey. Primary data wereCollected by asking questionnaires by directly interacting with the dealers.

Which retail store you are dealing?

RETAIL

STORE

VISHAL BIG

BAZZAR

EASY

DAY

V MART ALL OF

THESE

ANY

OTHER

RESPONDENT 8 6 3 2 1 0

INTERPRETATION- According to my survey I found that this dealer dealing the Vishal store.

You can see here 40% dealing to the Vishal mega mart.it is show that Vishal position is good in

the market.


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What is your pattern of sell to retail stores?

PERIOD RESPONDENT

WEKKLY 12

MONTHLY 6

DAILY 0

ANY OTHER 2

INTERPRETATION- According to marketing research I found that mostly dealer do the

transaction on weekly basis. You can say it is a type of credit basis.it is good for business.

How do you accept the payment?

RECEIPT CASH CHEQUE BOTH ANY OTHER

RESPONDENT 1 15 2 2

INTERPRETATION- According to my survey I found that dealers accept the payment by

cheque. Because payment of cheque show the credit. And without credit you cannot run your

business.

Do you provide discounts to our retail store?

DISCOUNT YES NO

RESPONDENT 13 7


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Interpretation- According to my survey I found that mostly supplier gave to discount to retail

store. Because retailer are buy goods in bulks and they gave payment in a weeks.

FINDINGS AND RECOMMENDATIONS

FINDINGS:

Quite a few factors came in front that can be called as good research findings and

Vishal mega mart need to work upon these for growth.

1. Through the survey i found that most of dealer deal with Vishal mega mart. So we can say

that the position of Vishal mega mart is better than its competitors.

2. Through the survey I found that the goodwill of Vishal mega mart is good. because mostly

business occurred on credit.

3. Through the survey I found that Vishal sell is good. Because Vishal received goods in every

week.

4. Through survey we found that Vishal is big retailer and its consumption is more so they

provided satisfaction discount

RECOMMENDATIONS:

1. I found that display of product is not good.so Vishal should change the display system.

2.I found that the D.C of Vishal is very small. So Vishal should increase the space to the D.C.

3. Vishal should do some initiative and innovative work because there are many competitors

are in the market and all are doing same.

4. Dealers want that there at least one meeting in a year with us. All the dealers can sit together

and can discuss together. So VISHAL should arrange the meeting with dealers. From which to

get right knowledge about customers and market.


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5. Godown should be available near to the target market. It will leads to help in sudden orders

and will also help in timely delivery.

CONCLUSION

During my study of supply chain management of Vishal mega mart I have found that Vishal

mega mart using different kind of supply chain which are different than other retailer. Vishal

mega has its own bigger ware house where its keep inventories means all the supplied goods by

the different supplier are kept their. Then the goods are supply to Vishal mega mart store their

necessities. I think that this kind of supply chain is very good for store. Because by having this

kind of supply chain. They delivered the goods their store in time. Because they have delivered

supply chain in two parts. That is half of supply chain is completed by the supplier and half of

supply chain completed by store.

References

http://proquest.umi.com/pqdweb?did=2076017851&sid=1&Fmt=3&clientId=129893&RQT=309&VName=PQD


http://proquest.umi.com/pqdweb?

did=2064893561&sid=3&Fmt=2&clientId=129893&RQT=309&VName=PQD

http://proquest.umi.com/pqdweb?

did=2032398871&sid=3&Fmt=3&clientId=129893&RQT=309&VName=PQD


www.vrpl.com www.retailabout.com

Questionnaire

For

Dealer/Agent


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Name of the Dealer:

Age:

Gender:

Address:

Mobile no.:

Q1. What is the nature of your Business?

(a)Domestic

Yes No

If Yes, then

Wholesaler Retailer

Both

(B) Exporter

Yes No

(c) Both Domestic and Exporter

Yes No


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Q 2. Which retail store you are dealing?Vishal mega mart Big Bazaar

V Mart Easy Day

All of these Any

other

Q 3. What is your pattern of sell to retail stores?

Daily Weekly

Monthly Any other

Q 4.how do you accept the payment?

CASH

CRIDIT CARD

CHECK

All of these

Any others

Q 5.Which kind of product do you sale?

C.D.IT

F.M.C.G

LIFE STYLE

All of these


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Any others

Q 6. For which segment do you sale the product?

Ladies

Gents

Kids

Q 7.What is the main factor that inspires you to supply to our

Retail store?

Competitive advantage Good relation

Brand imageour services

Q 8. Where is your warehouse?

Jalandhar 2 Ludhi

Phagwara Amritsar

Any other

Q9. What price ranges of the product are most sold? (Current

price with date)


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.

Q 10 . Do you provide discounts to our retail store?

YES .

NO


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