logistics mangement on cornerstone retail pvt. ltd

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ICFAI SCHOOL OF MARKETING STUDIES Logistics: Lifeline of Apparel Industry A Paper on “CORNERSTONE BRAND” of “ZEROSTOCK Retail Pvt. Ltd.” Mr. Sanjeev kr. Pandey and Mr. Hitesh Bhardwaj ABSTRACT Logistics industry is playing a vital role for every organization and this is the reason that logistic industry is evolving with very rapid pace. Due to the presence of cut throat competition in the market now organization are concentrating on their competitive edge over competitors. The Cost reduction is the main area where organization are working to provide product at cheaper cost and logistics management is one of these tools that offer effectual method of cost reduction. Now logistic industry is exploring innovative technique for profit maximization and cost reduction with some ground breaking technique like Just in time model and Zero stock concept. With the help of this paper here we are trying to explicate zero stock concepts that is using by Zerostock Retail Pvt. Limited. Zero stock buying refers to

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This paper tell about the application and advantages of zero inventory model in apparel industry which is first time used by Cornerstone retail Pvt. Ltd. in India.

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Page 1: Logistics Mangement on Cornerstone Retail Pvt. Ltd

Icfai school of marketing studies

Logistics: Lifeline of Apparel Industry

A Paper on “CORNERSTONE BRAND” of “ZEROSTOCK Retail Pvt. Ltd.”

Mr. Sanjeev kr. Pandey and Mr. Hitesh Bhardwaj

ABSTRACT

Logistics industry is playing a vital role for every organization and this is the reason that logistic industry is evolving with very rapid pace. Due to the presence of cut throat competition in the market now organization are concentrating on their competitive edge over competitors. The Cost reduction is the main area where organization are working to provide product at cheaper cost and logistics management is one of these tools that offer effectual method of cost reduction. Now logistic industry is exploring innovative technique for profit maximization and cost reduction with some ground breaking technique like Just in time model and Zero stock concept. With the help of this paper here we are trying to explicate zero stock concepts that is using by Zerostock Retail Pvt. Limited. Zero stock buying refers to buying in a manner that the system ensures that the material is delivered by the seller only when it is required and that no prior inventory of the item is maintained by the buyer. Normally, under this system the firms try to operate on the basis of zero stock and the supplier holds the stock for these firms. Usually, the firms of the buyer and seller are close to each other so that the raw material of one is the finished product of another. Alternatively, the system could work well if the seller holds the inventory and if the two parties work in close coordination. This also significantly reduces obsolescence of inventory, lead time and clerical efforts in paper work.

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The modern logistics management is based on serving the customer in an efficient manner. Modern customer –driven logistics management focuses on delivering product on time with list cost to meet customer expectation. Due to the globalization of industry logistic became more critical issue for many organizations with increasing interest rates and cost logistic obtained more attention as a major cost driver. Globalization of industry affected logistic in two ways. First, increasing competition among the organization has caused to look for new way to differentiate their organization, product and services from others. Second, the logistics management between the organizations become a vital part, more costly and more complex as organization increasing buy and sells offshore. Transformation of technology and information technology contribute boom in logistic management, provide ability to better monitor transaction incentive activities such as ordering movement and storage of goods and material to organization; this information technology increase the ability to manage flows of tangible material (e.g. raw material) and intangible material (e.g. information) through the operation to the customer (finished material). In present scenario profit leverage from logistic and actualization that logistic can be used as a strategic weapon in competing the market place.

Did you ever imagine about a man apparel store; where no stock is available! A Hyderabad based Retail Company Zreostock Retail Pvt. Limited entered into market with zero stock concepts. The company has introduced CORNERSTONES branded men’s wear apparel and shops. This company was founded by Madhukar Gangadi, chief executive of MedPlus Health Service Pvt. Limited, which runs a chain of medical store. By using zerostok business model this company claims to give value, variety and convenience to customers. As there is no readymade apparel available at the store and customer are required to give order according to their size and fitting; so along with their value, variety and convenience mantra company also challenging to deliver customers order within 24 – 48 hours ones the transaction is done. The success of company will depend on in term of quality and price and also delivery what company is claiming! That is efficient logistic management.

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INTRODUCTION

In the highly competitive business environment of today, companies find it difficult to maintain its competitive advantage over others only developing innovative strategies pertaining to the product, price, place and promotion. Though they have tried out various methods to build competitive advantages for themselves like making change in the product design, pricing the product differently, and even trying to reduce the cycle for the product to reach the retailers’ shelves from the manufacturing location, they have realized that competitors can duplicate these efforts. Thus, the emphasis of all company today is to build a sustainable competitive advantage. And logistics provides a means by which they can do just that.

Logistics is the complex process by which companies transport products, parts and material from the place where they are manufactured to the place where they are required. Effective logistics management requires that the actual status of goods and services be communicated in real time to the various groups of the people involved in the logistics process. These logistics service providers to improve their service by keeping a closer watch on inventory and taking the steps necessary to avoid losing customers.

The aim of this paper is to create the conditions for efficient application of flexible manufacturing based on Zero stock model (which is similar to just in time concept) and to enable companies to produce higher quality of products according to market requirement. Furthermore, especially in apparel industry customer tastes and preferences are changing rapidly. Customers are demanding in term of quality, time and order fulfillment. In this context, apparel firm must be more and more flexible and reactive to anticipate and to adapt such changes. There are several reasons for the overriding importance being given to logistics by apparel business across the world. These reasons include wider availability of alternatives to maintain cost and service standard, need for location of out let closer to the market, the increasing shortage of raw materials, and the perceived need for an effective system of computerized inventory control.

In this paper, we are foregrounding on Zero stock concept and examine the logistical implementations needed to support retail operation in high demand variability industry through an examination of “Cornerstone Brand” of “Zerostock Retail Pvt. Ltd.”

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1. LOGISTIC

A. Definition :

LOGISTIC IS THE ART AND SCIENCE OF MANAGEMENT, ENGINEERING AND TECHNICAL ACTIVITIES CONCERNED WITH THE REQUIREMENT, DESIGN AND SUPPLYING, MAINTING RESOURCES TO SUPPORT OBJECTIVES, PLANS AND OPERATION.

----SOCIETY OF LOGISTIC ENGINEERING (SOLE) 1974.

B. Origin/ concept of Logistic :

The origin of the term LOGISTIC has been traced to the Latin word logugea, which means a lodge or hut. Logistic is often erroneously thought to be a purely military term due its initial association with the military. Webster’s dictionary too defines logistic as “the branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.” History is witness to the fact that the most successful war campaigns have been the ones in which the winning side was equipped with a superior logistic network. An efficient logistic network was instrumental in quickly and efficiently transporting supplies, material, equipment, and troops to the side of action.

In business too, logistic plays a similar role as in the military like for fighting a war, it require a predefined objective, punctilious planning to achieve the objective, troops properly deployed and achievement of objective at minimal loss of man and material, similarly marketing managers also need a appropriate logistic plan that is able of fulfilling company objective of profit maximization, cost reduction and same time satisfying demand of target customer.

Logistic is a complex process by which company transport product, parts and material from the place they are manufactured to the place where they are required. Companies across the world are increasingly realizing the importance of attaining a competitive edge over their competitors by effective logistic management.

Inbound logistics + Material Management +Physical Distribution = Logistics

Inbound logistics >>> The movement of materials received from suppliers like raw materials for further production.

Material management >>> The movement of materials and components within a firm

Physical distribution >>> The movement of GOODs outward from the end of the assembly line to the customer.

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Supply -chain management >>> It includes manufacture, supplier and also warehouse, retailers and customer themselves.

C. Evolution of Logistics :

Fragmentation Evolving Integration Total Integration1960 1980 2000

Demand forecasting

Purchasing

Requirement Planning Materials

Production Planning Management

Manufacturing Inventory

Warehousing Logistics Logistic

Material Handling

Industrial Packaging

Finished goods Inventory

Distribution Planning Physical Distribution

Order Processing

Transportation

Customer Service

Fragmentation 1960 This era was known as fragmentation era because everything done was disintegrated.

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Evolving Integration: At this stage of time new concepts of Logistical management were evolving.

Total integration: In the present scenario because of technological advances logistics has evolved as part of management.

D. Importance of Logistic:

Logistic has gained importance due to these trends:-

I. The location of retail outlets based on proximity of markets. During periods of energy shortage, transportation has become primary concern of companies. So effective logistic management helps companies minimize transportation cost and benefit them in the long run.

II. The growing production efficiency, complexity of product lines and the increasing shortage of raw materials are forcing companies to focus on logistics management to ensure constant and steady supply of raw materials to manufacturing location.

III. The fundamental change in inventory philosophy is another reason for companies to increase their focus on logistics is the belief that an effective system of computerized inventory control will help them tide over and crisis that may arise of swings in business cycle, change in interest rates, increase in cost of labor, etc.

IV. The advancement of new technologies assist managers to update sales and inventory planning more frequently and faster, and factories can responds with more tractability to fickle market condition.

V. The balance of power is shifting from manufacturer to trader in distribution chain.

E. Function in Logistics management:

Logistics is a complex process, involving several functions:-

Procurement /Purchasing:

Procurement is the process of buying goods and services for the user department based on order specification given by that department.

Inward Transport:

This is the function in the logistic process in which part and components are moved for storage in warehouse.

Receiving:

Receiving is the function in which the material is received at the warehouse for storage.

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Warehousing:

It is the function in the logistics process in which the material received for dispatch is stored for various duration of time. It serves as an efficient way to balance the demand and supply of goods.

Stock Control:

It is the function in logistics that involves keeping track of the amount of stock present in the inventory.

Order Picking:

Order picking is the function of picking or retrieving products stored in the ware house from there their respective storage location to cater to customer order.

Material Handling:

Movement of material required for operation.

Outward Transport:

Function of dispatching to meet the user requirements.

Physical Distribution management:

This function in logistic management involves all those activities that help in the delivery of the finished goods to the customer.

Recycling, Returns and Waste disposal:

This function comprises the reverse logistic process. It is the process in which the materials and goods move from customer back to the manufacturer.

F. Strategic issues in Logistics Management:Local and Global challenges in logistical management:

Local Challenges:

Integration of logistic activities to satisfy the customer. Lack of qualified personnel involved in logistics management.

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Global Challenges:

Distance Documentation Coordination of intermediaries Cultural differences Government /political differences Globalization of the firms Flexibility and speed Supply chain integration

Some of the steps that could be followed to mitigate the above mentioned issues are ….

Performance:

Better service for customer Improved productivity Assess JUST IN TIME SYSTEM and quick response needs By understanding the change in market place in terms of demand, emerging trend, and

nature

System structure:

Better relationship with vender, customers and third parties to more effectively manage the supply chain

Better relationship within and across the organization

Technology integration

Technology is playing a key role in communication as well as in other processes in the logistics and helping logistics firms to attend the competitive advantage. The efficient use of electronic data interchange, artificial interchange, expert systems, communication technology in the form of satellite and wireless communication, bar-coding and, scanning.

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2. Traditional system of logistics in apparel industry:

Under the traditional model of logistics operation, retailers of branded apparel had to give order to manufacturing unit in advance of the selling season. In this traditional system retailers had to estimate quantity ordered for different type of size and style based on current fashion and trend. Once the order was processed by retailers, manufacturing unit start its processing and did not allow the retailers to change in given order. The shipment of stock between an apparel manufacturer and retail customer is large and low frequency-usually once or twice in a season. Once the stock was delivered by manufacturer, the retailers held the stock at central distribution center or as inventory in warehouse. During the time of sale this stock would be further distributed to Organized/Unorganized retail stores and to franchises of manufacturing company. Unsold goods were sold at discount or to store for further sale.

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Buyerforecast

quantity to order

Manufacturerinflexible

manufacturing processing

Distribution centers/Warehousehold finished godds

Retail outletssell goods to consumer,

inventory count. and analysize sale history

Order

DeliveryDelivery

Sales data

Figure 1: Logistic Operation in Apparel Industry

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3. The problem associated with the traditional Logistics system in apparel industry:

The apparel industry is highly volatile industry due to the continuous change in taste and preference of consumer. Whatever is the latest fashion trend today, it will be outdated tomorrow so there is always risk factor and uncertainty associate with apparel industry.There is one question always remain in manufacturers mind regarding what product will sell or not sell in any given season. In practical term, a retailer holding a large stock of goods confronts increased costs both for carrying overstock that will not sell and stock-out that sells beyond expectations. The costs of goods were also high due to the presence of old logistic management. Basically three types of costs were high in old system:

Undercutting of cost to clear out unsold goods Lost sales due to stock out Inventory cost

4. Steps towards improvement of Traditional Approach:

A. Scope of logistics management in Apparel Industry:

Today apparel industry is dominated by several brands like Park Avenue, Allen Solly, Killer, and John Players. As a result, discount and mass apparel players are finding it advantageous to introduce name brand exclusive apparel lines which enhanced their brand image and increased in revenue. On the other side, more expensive brands are trying to reduce costs and increasing unit sale, which offers same quality to consumer as brand name without the higher price tag. Due to the presence of cut throat competition in the market, apparel business organizations are concentrating on their competitive edge over competitors. The Cost reduction is the main area where companies are working to provide product at cheaper cost and logistics management is one of these tools that offer effectual method of cost reduction. Now logistic industry is exploring innovative technique for profit maximization and cost reduction with some ground breaking technique like Just in time model and Zero stock concept.

B. Improving the Traditional Approach:

Initially the apparel companies had driven their all effort on reducing manufacturing timing. And many manufacturers strongly believed that this could be achieved only by maximizing efficiency in cutting, sewing, and dyeing. Many efforts also directed towards the modifying worker productivity and being able to manufacture apparel faster and cheaper. This was strongly believed by apparel companies that price differentiation strategy played a key role to survive in competition. But recent studies reveal that reason behind the success of apparel companies is not only local optimization of manufacturing

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process but also global optimization of logistic process. Effective utilization of information technology and management practices provides competitive edge to company over its competitors. Apparel Company who utilize IT tools for forecasting demand, order processing and integration of MIS tools in logistics management, is able to reduce unsold goods and to deal with cost cutting problem. This concept helps apparel retailers to keep less inventory which leads to cost reduction and profit maximization.In short, today’s scenario required a flexible supply chain system for successful retailing where continuous adjustment of the product orders and transportation system capable of delivering goods no sooner and later than is needed. The continuous adjustment in order is needed because of the inherent difficulty with predicting customer tastes and preferences.

5. Use of third party logistics system in Apparel Industry:

A. Efficient supply chain and logistics management are crucial for growth of apparel industry.

Safexpress Pvt Ltd, Leaders in the Supply Chain and Logistics Industry sponsored the ‘Pure and Play’ and ‘The Shop’. The conference-cum-exhibition was held from 29th June to 1st July 2008 at Pragati Maidan, New Delhi, India. The event was attended by Industry veterans like Subhinder Singh, MD, Reebok India; DPS Kohli, CMD, Koutons; Andreas Gellner, MD, Adidas India; Deepak Deshpande, V.P. (Retail),Bata India; Charath Narsiman, CEO, Indian Terrain; Roshini Bakshi, Country Head, Disney India; Subhash Chhabra, President, Globus; Sanjay Sahni, MD, Rituwears; Tarun Puri, MD, Nike India and many more.

Apparel Industry is a huge segment of the Indian Economy. The total size of the Indian apparel industry is estimated to be US$ 31 billion.

The purpose of this three-day event was to cast the attention of apparel business organizations towards minimizing the stock turns and increasing profit margins by way of using the best supply chain practices.

Mr. Vineet Kanaujia, GM – Marketing, Safexpress stated “The Apparel Industry in India is a highly dynamic industry witnessing change each day. The changing lifestyle patterns, the ever-increasing purchasing power and the growing style-consciousness in the youth are the main factors driving the growth of this IndustryThe full potential of the industry would only be realized when SCM and Logistics services begin playing a bigger role in the current business scenario.”

A seamless movement of products right from pick-up of raw or semi-finished products from the manufacturer, to managing the packaging of products, to delivering the products

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right at the store-shelves is a challenging task.

Apparel Industry holds a huge business potential for logistics Industry. With advanced technology and streamlining of operations.

The share of apparel business in overall portfolio of logistic industry is the largest. Logistic industry organizations are continuing innovating and providing customized solutions to the apparel industry. This increasing role of logistics players are developing third party logistic concept in apparel industry. For example a new brand Cornerstone is working with third party logistic system on zero stock concepts to meet with competition and to gain competitive advantage over existing apparel brands.

B. Third party logistics (3PL)

Third party logistics is simply the use of an outside firm to provide perform all or the part of the firm’s material management and product distribution function. 3PL relationships are typically more complex than traditional logistics supplier relationships: they are true strategic alliances.

3PL began in the 1980s, was a $45.48 billion industry in 1999, and grew by 24% to $56.4 billion 2000. The use of third parties logistics is most prevalent among large companies. Third –party logistics are finding it hard to persuade small companies to employ their services, although this may change use as the use of 3PL more prevalent and as 3PL provider make a larger effort to develop relationship with smaller companies. Today role of 3PL not only restricted to Warehouse Management Systems (WMS) but enhanced by activities billing features. Now the responsibility of a 3PL extends beyond the four walls of warehouse. In current market condition clients are commonly asking to manage everything from the front-end where orders are captured, all the way through the warehouse, shipping dock, and to the customer’s location where delivery is made. These are the possible area, being asked to handle to extend beyond walls.

Warehouse Management Order Management Activity Billing

Transportation Management

Customer Relationship Management

Accounting Human Resources Management

Productivity Management

Business Intelligence

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C. Advantages of 3PL

It allows a company to focus on its core competencies Provides technological flexibility, update information technology and equipment as

requirement of Retailers, companies in a quicker and more cost - effective way Provides flexibility in geographic locations, service offerings, resources and workforce

size

D. Disadvantages of 3PL Loss of control inherent in outsourcing a particular function especially in outbound

logistics where 3PLcompany employees themselves might interact with a firm’s customers

6. A Look at New Methodology of Inventory Control and Logistic Management: @ “CORNERSTONE BRAND” of “ ZEROSTOCK Retail Pvt. Ltd.”

A. Origin:

Zero Stock Retail Private Limited is a Hyderabad-based privately funded company founded by Wharton MBA graduates Mr. Madhukar Gangadi, chief executive of MedPlus Health Services Pvt. Ltd, which runs a chain of medical stores. Company has come with its “Cornerstone” brands of menswear through 20 exclusive outlets in the “happening city”. The company offers men’s formal and casual wear. Company has more than 300 outlets across the major city and town and plans to open30 stores in cities such as Kolkata, Bangalore, Chennai, Pune and Jaipur.

B. Concept of Zero stock:

The company is following Zero inventory model. Zero stock model carries no inventories at store and work in such an manner that ensures the stock is delivered by manufacturer when it is required. It is a new concept in apparel industry in India and untested. It is becoming popular with concept such as Just-in-time approach that is similar to it. Central elements in zerostock model are:

No stock of any kind Flexibility in every situation, especially in relation to customers Reduce time of delivery Total quality control and cost reduction Completely prevention maintenance

Zerostock Retail Pvt. Ltd is first company come in market with such type of concept to introduce its brand Cornerstone. It is an innovative idea for retailing men’s wear –there is no readymade

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apparel available at the store only sample wears for trial and a display of designs and fabric. Customers choose the cloth from a set fabric sample, as also the style and cut. The finished garments delivered in 24-48 hours. And customer can shop online too. Cornerstone, which is laying claim to being the first customized apparel brand in country, offers shirts with neck sizes between 36 and 46 cm and trousers with waist sizes between 28 inches and 48 inches. Company also offers sizes 30,31,33,35 besides standard sizes like 32 and 34.

Variety, Convenience and Value is the company’s mantra. The company is claiming the widest selection of the highest quality men’s clothing at price at least 30% below the market. Company has tied up with AFL logistics provider for the delivery of finished goods. It has centralized inventories in different location and also looking for more set up across the country. The reasons behind the low cost of apparels compare to others brands are –

Zero inventories in store-no blocking of huge amount of money:All retail outlets of company are operating on zero inventories and only different type of shades, pattern, and some trial wears of different quality are only available at store.Company is maintaining its stock in warehouse and further delivers order at desire place of end consumer by using just in time concept.

Smaller real estate cost:Retail outlets are working on smaller square feet area as stores are operating on zero inventories model, so this concept is helping company to reduce real estate cost or infrastructure cost and providing competitive advantage over other branded players who are maintain big size outlets or showrooms.

Effective utilization Third Party Logistic services and Just in Time concept of logistics management.

C. Future plane of company

Menswear account for 45% of India’s Rs.89 000crore garment industry with this innovative idea, Company expecting a great success in apparel industry and looking to expanding the companies offering to footwear, jeans, sweaters and accessories such as ties socks and belt. In fiscal year 2009, company expects revenues of between Rs 30 crores to Rs 40 crores. Zero stock has exhausted some Rs 50 crore rose from unnamed angel investors, it is looking to raise another Rs 50 crore from venture capital and private equity firm to support growth plans. In near future, company is going to open more than 300 shops across major cities and towns, and by the end of 2009 the no of outlets would go up to 1000.

D. Order processing and Role of logistics at Cornerstone:

Manufacturing Unit

Customization of clothes according to customer choice but for a particular price

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Retail store

Zero inventories, Trial wears, Kiosk display

Warehouse

Readymade apparels of particular price category order

Customer

Direct visit to

On line order

Order processing through online system once the transaction has done by customer

Order processing if stock gets over (computerized)

Delivery of order with the help of 3PL at customer desired place within 24-48hr.

Fig 2: Order processing, Zero inventories and just in time logistic function at Cornerstone Brand

3PL

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Description of figure:

I. Customer:

Customer can give order by two ways:

First, by visiting retail outlet of company and here he can measure his size; can choose different shades, designs.

Second, if the customer is confirmed about his size or once has visited the retail store the he can also give order by online process. Customer can see all type of designs; pattern, clothes quality and how shirt/trouser will look like after it get manufactured through online process.

II. Retail outlet:

There are zero inventories at retail store and it holds only some trial wear, folder for different type of clothes material. In others retail out let only fix no of design and pattern are available and customer has to make purchase decision only from available stock unlike This zeros tock concept allow customer to choose from a wide variety of clothes.

One of the main fundamental problems which associated with apparel industry is to satisfy and fulfill the demand of customers who are having odd sizes. This company is providing customization of clothes according to the size of customers, so by using zero stock concept company is also able to capture this market segment.

Once the transaction has done by customer his order is delivered to manufacturing unit by retail outlet through electronic data change or computerized online system.

III. Warehouse:

Company has located its warehouse in Hyderabad and using central distribution system. In warehouse company is only keeping some readymade apparel of particular price range as company is not providing customization facility below certain prices. So warehouse only receive those order form retail outlet which fall in this price category.

Once the order received by warehouse it starts it’s processing and delivered consumer desired order at desire place by using JIT approach and Third Party Logistic service.

IV. Manufacturing unit:

Company does cutting, sewing, and dyeing of clothes at manufacturing unit. Manufacturing unit also does not keeping any readymade clothes; Manufacturing process only start when it receive order from retail outlets and directly from customers. There is no involvement of extra human resources to take order from retail out let as all system is working on computerized system.

Manufacturing unit does these works:

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Supply stock to warehouse using just in time concept with the help third party logistic Supply customize order to end consumer

V. Delivery of order:

Supply of order is done by using service of third party logistics. Company has tied up with AFL Pvt. Ltd., a logistics service provider company, for transportation of stock to warehouse and for the shipping of customers order at desire place. AFL provides an extensive Express and Logistics network offering a range of value-added services to its client. AFL customized products and service portfolio provide its customers with a Unique Service dimension worldwide.

Some quick fact about AFL:

Domestic :

Reach    : 1400+ destinationsNetwork :

23 Hubs

50 Warehouses1 million sq. ft. (approx) Area

International : 292 countries

Industries Served:

Consumer DurablesAutomotive

Hi-TechTelecomITReadymade GarmentsPharmaceuticals

7. Opportunities for Cornerstone Brand:

o Fewer inventories needed at retail outlet for operationso Increase flexibility of manufacturing capacitieso Shortening of manufacturing cycleo Small square fit area is require for retail outleto Major cost advantage over competitors

o Control on Undercutting of cost to clear out unsold goods

o To cash Lost sales opportunity that arises due to stock out

o Reduction in Inventory cost

o More customer satisfaction with the help of customization of services

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o New market development by satisfying need of customers who has odd size of

clotheso Company is increasing customer awareness level by giving knowledge of fabric

material which in turn making more loyal customers to companyo Development of new concept for whole apparel industry

8. Threats for Cornerstone Brand:

Company operation is completely based on third party logistics if any uncertainty happen during process it will leads to customer dissatisfaction.

Co- operation and reliability between the customer and supplier Active engagement of all participants in reference to relation of objective

established Effective control of the material Delivery of order at customer place within 24 to 48 hours is again a challenging

task for a company. Company is facing challenges in order to change consumer perception about this

new philosophy. In most of the cases consumer do impulsive buying so in this specific area

company is losing customer as no stock is available at retail store. One of the big threats in front of company to compete and same time differentiate

itself from the tailors.

9. Conclusions

Logistic is a complex process and involve several functions and there are several reasons for the paramount importance being given to logistics by business. We have examined that to improve the retail process in apparel industry through strong logistics management, companies has to use available IT tools and innovative approaches of logistics. Communication using satellite technology and sophisticated devices make it possible for the various players involved in the logistics chain of process to remain in constant communication with one another and with the end consumer. Technology is playing a key role in the logistics function and helping firms to attain a competitive advantage. Business are beginning to realize the need to focus on their logistics strategy, integration of information technology in addition to advanced inventories control approaches like Zero inventories model.Zero inventories model is now latest approach in apparel industry to provide the flexibility in manufacturing capacities, producing high quality of products in accordance with market demand. It is the way to reduce the unsold goods, which has to be sold at lower price that save the market down cost. This is the most appropriate way to shortening of manufacturing cycle. The logistic

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chain is supporting the main principles of the Zero stock model and in this way it is making strong connection between the supplier and the customer. Changing consumer taste and preference is a continuous phenomenon and satisfying the need and want of customer is challenging task for marketer. Zero stock model is a unique concept to understand the customer psych and deliver the product in accordance with their desire. This Zero stock models is the tool by which apparel Companies can produce high quality, best size of the product quickly and the efficient transportation system can deliver the goods to customer when and where it is needed and faster than traditional model. In India there is a huge market of apparels and have large number of players, entry of Zero stock Retail Ltd. with innovative idea does make a difference up to an extent but success of the company will depend on its ability to deliver what it promise to its customer in terms of quality and value for the money and also making deliveries within 24 to 48 hours. The efficient logistics is one of the tools through which company will fulfill its customer expectations.

10. Bibliography: “International Logistics Management” online data “The Modern Logistics Service Provider” By: Kevin Michel “The Logistics Sector in India: Overview and Challenges” By: Pankaj Chandra

and Nimit Jain (IIM- Ahmadabad) “Optimal Solution for Organizing the Logistics Process of JUST-IN-TIME

CONCEPTION” By: Slavica Cvetković, Nada Barac “High fashion, low price Logistic of Apparel Industry” By: Bradley Richard Yim “Designing and Managing the supply chain” By: David Levi and Edith Levi, Tata

Mc-Graw-Hill edition- II “Zerostock launches Cornerstone brand”. , Business line, Deccan Chronicals,

November 19/08 www.Zerostock.com www.Afl.co.in