Challenges In Indian Retail Supply Chain

SC
M
By: Prateek Sharma - 024
Varun Madan - 032
Retail Challenges

Source : Chain Store Age

• Credit Defaults ->Supply • Credit Defaults ->Supply
breakages e.g HUL breakages e.g HUL
• problems managing its front-
end and supply chain
• Couldn’t build robust IT
operations using its existing
local Enterprise Resource network
Solution(ERP) • Dead Inventory
• customers often not able to
get what they are looking for
in the stores, the retailer risks
putting them off forever
Another Problem
 Challenges
• Poor inventory turns and stock availability measures

• Operations of retailers and suppliers are not integrated. Efficient

replenishment practices practiced in the Indian auto and auto-component
industry can be leveraged to implement efficient supply chain
management techniques.

• Supplier maturity, in terms of adherence to delivery schedules and

delivering the quantity ordered, is an issue
• Sales tax laws - lead to retailers having state-level procurement and
storage leads to Indian retailers having higher inventories. VAT has helped
alleviate this a bit
 Points we consider
• Is the supply chain as lean as manufacturing
operation
• Does it give competitive advantage
• Is it flexible enough to shift with market
• Is it responsive to customer requirements?
• Does it make sense from a “balance sheet “
viewpoint?
 CPFR
COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT

Optimizes the supply

chain

Creation &
integration of
consumer demand data

Produce & ship in

response to consumer
demand signal
• Promotion Planning Strategy &
Develop a Promotional plan
for a chosen period
Planning
Communicate

• Vendor Management

• Category Management

• Market Planning

• Account Planning
• POS Forecasting
Demand &
Supply
• Replenishment Planning Management
• Market Data Analysis

• Demand Planning

• Consensus Forecast
• Logistics
Execution
• Distribution

• Buying / Rebuying

• Production & Supply

Planning
Production planning
Material requirements
planning
• Customer Scorecard
Analysis &
• Quarterly Reviews
Review
• Supplier Scorecard

• Store Execution
Inventory Metrics
 Week’s Supply

 On-Time Delivery

 Order Fill Rate

 Lead-Time