presentation retail2

8/8/2019 Presentation Retail2

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Flow of Presentation

Logistic Scenario in Retail

Brief about Shoppers StopDC & 3PLOperationsPast Situation

Systems MMS WMS

Conclusion


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Logistics management cost component in Indiais as high as 7% -10% against the global average

of 4% - 5% of the total retail price.

Challenges in Indian Retail Logistics: Curtaileddue to infrastructure constraints & the wider

range of products.

In India, the logistics market for organizedretail is pegged at $50 million and is growing at

16%. It is expected to reach $120-$130 millionby 2010.

Organized retail on the other hand is growing at

40% and is around $13 billion.


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Shoppers Stopbusinesshasgrownfrom one store inMumbai in 1991 occupyinganareaof approximately0.05millionsquarefeettoapproximately1.50 millionsquarefeet

acrosstwentyseven(27) (includingHomeStop) storeslocatedinthecitiesofMumbai, Delhi, Kolkata, Chennai,Bangalore, Hyderabad, Pune,Jaipur, Lucknow, Gurgaon,GhaziabadandNoida.

Format Name No.

DepartmentalStore

ShoppersStopHomeStop

243

Speciality Store Crossword(bookstore)MotherCare(babies,expectingmothers)Brio(F&B)DesiCafe(F& B)Arcelia(cosmetic, jewellery handbags.)Timezone(entertainment)MAC(cosmetic)

4818203264

Hpermarket Hypercity 1


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Shoppers Stopbusinesshasgrownfromone store inMumbai in 1991 occupyinganareaofapproximately0.05millionsquarefeettoapproximately1.50 millionsquarefeet

acrosstwentyseven(27) (includingHomeStop) storeslocatedinthecitiesofMumbai,Delhi, Kolkata,Chennai,Bangalore, Hyderabad, Pune,Jaipur, Lucknow, Gurgaon,GhaziabadandNoida.

Format Name No.

DepartmentalStore

ShoppersStopHomeStop

243

Speciality Store Crossword(bookstore)MotherCare(babies,expectingmothers)Brio(F&B)DesiCafe(F& B)Arcelia(cosmetic, jewellery handbags.)Timezone(entertainment)MAC(cosmetic)

4818203264

Hpermarket Hypercity 1


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Four Distribution Centers covering 303,382.20 square feetservicing departmental stores and specialty stores acrossthe country.

City Region Stores ServicedMumbai Western Mumbai, Pune, Ahmedabad

Delhi Northern Delhi, Gurgaon, Jaipur, Lucknow,Noida, Ghaziabad

Bangalore Southern Bangalore, Hyderabad, ChennaiKolkata Eastern Kolkata

Handling over 400,000 SKUs per year, and working 24x7.

The Distribution Center management is outsourced toservice providers such as Toll (India) Logistics PrivateLimited.


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IT Backbone

Entire organization is networked and connectedwith the 27 stores and 4 Distribution Centers(warehouses) linked up to the Services Officethrough high speed leased line.

Have almost 600 point of sales machines andover 1000 desktops or laptops connected toover 75 servers spread across our differentlocations, through leased lines and IntegratedServices Digital Network (ISDN).


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Delhi

GurgaonJaipur

Pune

Mumbai

Bangalore

Hyderabad

Chennai

KolkataAhmedabad

Distribution Centre

Major Store Locations

Shoppers stop Foot Print


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The Past Situation of SCM

Turnaround time: 4 daysPoor hit rate from partnersDifficulty in tracking merchandiseNo sharing of inventory data with partners

High Distribution CostHigh inventoryHigh ShrinkageShutting down all operations for 48 hours for

annualstock takeHigh variance between books stock and physicalstockInefficient use of executive time


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Systems

Shoppers Stop implemented the JDA RetailMerchandiseManagement System (MMS) in 1999.First retailer in Asia to implement the state-of-the-artERP

Merchandise Management System

An end to end solution for managing merchandisethroughoutthe chain.Right from purchase orders, to sales, toreplenishment, tomarkdown and inventorymanagement.A integrated online system connected with the backend,front end (stores) and the distribution centers.


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MMS Triggers

Auto Purchase OrderPre-determined level of minimum stocks for core styles atdistribution centerDrop in level generates an Auto Purchase Order to the

Vendor

Auto Replenishment

Pre-determined level of minimum stocks for core styles ateach storeDrop in level generates an Auto Replenishment commandat SKU level to the concerned distribution centerDaily Auto Replenishment to all 15 stores


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Warehouse Management System

Shoppers Stop implemented the WMS in 2001, fordistribution & logistics.

WMS enable the space planning and also integrated SKU

location which enable faster picking and putting ofmerchandising.

Prior to WMS, inventory was monitored manuallyandtransfers required more than 96 hours.

With WMS, entire process controlled electronically.

Transfers are executed in 24 hours.


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The WMS Process

Distribution Center mapped onto a rack and bin system

Calculates storage capacity

Allocates designated area to each product category

through PUTAWAY document

PICK LIST identifies exact location of merchandise atSKU level

Maintains records of perpetual inventory online

Minimize shrinkage

Reduces turnaround time to 24 hours


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Mumbai DC

Delhi DC

Kolkata DC

Bangalore DC

Partner 0

Partner 2

Partner 1

Partner 3

StoreStore

Store

StoreStore

Store

Store

Store

Outbound Logistics

Western

Region

Eastern

Region

NorthernRegion

Southern

Region

Operations Outsourced

BConnectB WMS Win DSS

/MMS

ReverseLogistics


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Partners

Systems

Logistics

Strategic Actions

JDA - MMS - WMS-Improved EfficientConsumer Response

B2B- Seamless IntegrationSource Tagging- Seamless merchandise flowReceipts- 100% reconciliationDirect Store Delivery

- 20% of merchandise

Infrastructure- Scalability to 50 storesDelivery Mechanism- Turnaround time 24 hrsIntake Consolidation- Cost Savings


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presentation retail2

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