Challenges of Grocery Retail Logistics
Transcript of Challenges of Grocery Retail Logistics
Group Members:•Aditee Thale•Moiz Zakir•Ajinkya Targe
Getting the right product at the right place at the right time…
Introduction to the industry. Market share of European retail. Supply chain Model & organizational
structure. Best Practices Example of World Top Retailer Challenges Learning from the visit (Regular practices) Take back
The retail industry is a sector of the economy that is comprised of individuals and companies engaged in the selling of finished products to end user consumers.
The retail industry is one of the largest economic sectors in Europe.
Employment to about 17 million people, and services to some 480 million.
Investment volume of European logistic market is above 10 billion Euros.
Germany, France and UK contribute to the major chunk of Logistics turnover in Europe.
E-Retail supply chain E-Retail supply chain modelmodel
Excellent communication and coordination is absolutely necessary as components and goods cross more and more borders than ever before.
The GS1 System of standards is well known and widely used in the Transport and Logistics sector. This includes a range of GS1 Identification Keys like
GTIN GLN SSCC GSIN
GS1 Application Identifiers (GS1 AIs). GS1 data carriers
▪ GS1 Barcodes,
▪ EPC/RFID tags GS1 communication Standards
▪ GS1 eCom
▪ The GS1 Global Data Synchronisation Network,orGDSN®
Grocery Supply Chain Grows Greener with Local Foods.
Internet grocery retailing.
1. CORA Groups and their Practice:
Cora is a retail group based in Belgium which owns several supermarket and hypermarket chains internationally.
Formed in 1974, the corporation's brands include Match, Profi, Truffaut, Ecomax, Animalis, Sovena and Houra, as well as Cora-branded hypermarkets.
CORA in Hungary has 7 stores and uses centralised distibution done by the third party logistic Provider.
VMI Preallocated Cross docking Beneftis of centralised distribution
Saves Cost Minimum Infrastructure with Maximum Value Save Paper and delivery notes From suppliers side merits are consistency, single delivery point,less documentation
Acquisition of Csemege-Julius Meinl in 1999 124 stores Supermarkets („big Match”)
▪ 17 Proximity („little Match”)
▪ 107 Store-picking
▪ Follows the stock level and out-of-stocks▪ Place the orders to the suppliers▪ Improve the service level from the suppliers▪ Improve the rentability of the logistic system
Line-picking▪ Consolidates the needs of the stores▪ Place the orders to the suppliers
Workshops▪ With suppliers about logistic discount, service level▪ With Marketing about assortment, promotions, stocks
Key to Wal-Mart's success is its ability to drive costs out of its supply chain and manage it efficiently.
Its business model would fail instantly without its advanced technology.
It has the largest IT systems of any private company in the world.
It business model follows: Everyday Low Price Strategy
Traditional MANUFACTURE -> WHOLESALER -> RETAILER ->
CUSTOMER Wal-Mart MANUFACTURE -> WAL-MART -> CUSTOMER
Wal-mart’s distribution approachOne-Store-At-A-TimeRFIDJust-In-Time
Low demand forecasting leads to increase in supply chain cost.
Demand patterns are constantly changing. Limited visibility of supply chain due to
disconnected system, limited collaboration and lack of information sharing.
No way to establish real-time relationship between lead time and safety stock.
Rising energy and fuel prices. Internationalization Rise of the discounters
Administration: Maximum value in minimum staff Technology to substitute manual work
Transportation: Efficient network Focus on FTL
Warehousing: Central warehousing Automation Collaboration Cross Docking Security of stock
Distribution: Reduction on lead time Avoid delivery failure
Create programs that promote collaborative forecasting and help reduce inventory.
Consolidate less truck load and transport providers.
Understand chain of responsibility. Derive maximum benefit from IT systems. Maintain open communication channels with
suppliers. Maintain and build good industrial relations. Look for opportunities to grow through
acquisitions. Voice picking.
www.gs1.orgwww.sclgme.org/.../Retail%20Logistics%20-%20Change%20and%20Challenges.pdf
www.ebusiness-watch.org/studies/sectors/retail/.../Leaflet-4_Retail.pdf