Operations in Retail Industry

8/8/2019 Operations in Retail Industry

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Presented by-

Anurag Chakraborty (2905) Arun Kumar (2951)

Nisha Agarwal (29108)



The Reason behind the

growth«y Growing number of nuclear families

y Working women

y Greater work pressure

y Changing values and Lifestyles

y Increased commuting time

y Influence of western way of life etc.

y Shift from just being Cost and Relationship drive to

Brand and Experience driven, while the Value

element still dominating the buying decisions.



KEY CHALLENGES:y Location:

y Investigate alternative trading areas

y Determine the type of desirable store locationy Evaluate alternative specific store sites

y Merchandise

y Pricing

y Target audience

y Scale of operations



INDIAN RETAIL IS MOVING INTO SECOND

GEAR

FIRST GEAR:(Create awareness)

- New retailers drivingawareness- High degree of fragmentation

- Real estate groups startingretail chains- Consumer expecting 'valuefor money' as core value

SECOND GEAR: (Meet customer expectations)

- Consumer-driven- Emergence of pure retailers- Retailers getting multi-locational and multi-format- Global retailers evincinginterest in India

THIRD GEAR:(Back endManagement)

- Category management

- Vendor partnership

- Stock turns- Channel synchronization

- Consumer acquisition

- Customer relation's management

FOURTH GEAR: (Consolidation)- Aggressive rollout

- Organized retail acquitting

significant share

- Beginning of cross-border

movement

- Mergers and acquisitions



RETAIL FORMATSy Hypermarket-

y Merchandise: food grocery to clothing to spots goods to books tostationery.

y Space occupied: 50000 Sq .ft. and above.

y SKUs: 20000-30000.

y Example: Pantaloon retail¶s Big Bazaar, RPG¶s Spencers (Giant).y Supermarket-

y Merchandise: relatively smaller scale

y Space occupied: 5000 Sq. ft. or more.

y SKUs: Around 10000.

y Example: Nilgiris, Apna Bazaar, Trinethra

y Convenience store-

y Merchandise: Groceries are predominantly sold.

y Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.

y Example: stores located at the corners of the streets, Reliance

Retail¶s Fresh and Select



y Department store-

y Merchandise: Apparel, household accessories, cosmetics, gifts etc.

y Space occupied: Around 10000 Sq. ft. ± 30000 Sq. ft.

y Example: Landmark Group¶s LifeStyle, Trent India Ltd.¶s Westsidey Discount store-

y Merchandise: A variety of perishable/ non perishable goods.

y Example: Viswapriya Group¶s Subiksha, Piramal¶s TruMart

y Specialty store-

y Merchandise: Depends on the stores

y Example: Bata store deals only with footwear, RPG¶s Music World,Crossword.

y MBO¶s

y Kirana stores-

y Merchandise: Mostly food and groceries.

y Space occupied: 50 sq ft and even smaller ones exist.

y Malls-

y Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.

y Example: Pantaloon Retail¶s Central, Mumbai¶s Iorbit.



Technology in Retaily Customer Interfacing Systems-

y Bar Coding and Scanners- Point of sale systems, Tunnel

Scanningy Payment- Credit cards, Cash

y Internet

y Operation Support Systems-

y ERP Systemy CRM Systems

y Advanced Planning and Scheduling Systems



Challenges in Retaily Forecasting and Inventory Management for JIT

replenishments of products.

y Peak Season Demand Handling.y Order Management in case of retailers with multiple

outlets.

y Warehouse Management in case of multiple outlets.

y Introducing new products.

y Handling variety of items.



Suppl i Str t i i

t ily Bulk-Breaking

y Vendor Managed Inventory

y Point of Sale Information System

y SRM - Supplier Relationship Management



Competitive Areas of

Importancey Fulfillment

y Logistics

y Procurementy Production



Inventory, Credit and Security managementy Inventory & Credit Operations

y Employee ManagementSystem

y Scanning System

y Smart System

y Vendor Management System

y Security Management System

y Employee ManagementSystem

y Employee Details

y Margin Tracking

y

Smart Systemy Daily Sales Report

y Billing Report

y Total Discount & Revenue

Reports

y Scanning System

y Product Discount

y Product Pricing Decision

y Product Management

y Vendor ManagementSystem

y Inventory Management

System

y Purchasing Order

Management

y Invoice Purchasing Order

System

y Security Management

y CHECK POINT SYSTEM

y CC SYSTEM

y Soft checks

y Hard checks



CHANGES IN RETAILING



Thank You

Operations in Retail Industry

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