Professional Documents
Culture Documents
Flow of Presentation
Retail Scenario Shoppers Stop The Pentagon Triangle Model Dimensions of Our Business Supply Chain Objectives Past Situation Strategic Actions based on the Triangle
Systems Logistics Partners
We pioneered a revolution.
From 2,800 sq. ft. to over 680,000 sq. ft. From 1 store to 15 international class stores. From unknown customers to creating a relationship programme with over 300,000 loyal customers. From being just a departmental store to being the only Indian store represented in the IGDS. From One company to Group companies.
CROSSWORD
All this has been possible due to our constant endeavour to EXPAND OUR HORIZON and become the No. 1 global retailer in India.
Our Vision.
To be a global retailer in India and maintain its No. 1 position in the Indian Market in the Department Store Category.
Our Mission.
best.
Snapshot
2003-2004 Annual Turnover Retail Space Number of Stores Customer Care Associates Year Founded Rs 404 cr. 680,000 sq. Ft. 15 1610 1991
350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 1992 1 1993 1 1994 1 1995 2 1996 1997 1998 1999 2000 2 2 3 5 No. of Stores 2001 7 2002 8 0.6 4.7 17.0 27.9 76.1 47.2 90.7 127.0 148.4 210.3 249.6
303.8
2003 9
2004 13
Industry Honours
Supply Chain Award for the Second best Supply chain Co. in the Country across all Industries by S.P.Jain Institute of Management in 2004. CMAI industry honours in 2003& 2004 for
CEO of the Year - RetailNagesh Retailer of the Year Retail Outlet of the Year-
Mr. B S
Place
Communication
Systems
Product
Logistics Partners
People
Value
The Pentagon
Size
Place
Location Layout & Design Style & Fashion Intensity Product Assortment
Positional
Communication
Promotional
Price Quality
The Pentagon is customer centric and customer facing The retailer can impact the customers perceptions, by leveraging the above elements
The Triangle
Systems
Logistics
Partners
The Triangle is organization centric A strong and differentiating triangle would result in better service offering to customer
Customer profile
Shoppers Stop caters to consumers who are demanding and discerning Age group: 25 to 50 years (77% of total customers)
Our Positioning
Customer Philosophy
Service Philosophy
Organization Objectives
Customer Response Time Merchandise Availability Distribution Cost Shrinkage Efficiency of executive time Collaboration with Partners
Turnaround time: 4 days Poor hit rate from partners Difficulty in tracking merchandise No sharing of inventory data with partners High Distribution Cost
Contd...
contd.
Shutting down all operations for 48 hours for annual stock take High variance between books stock and physical stock Inefficient use of executive time
Strategic Actions
Systems
Logistics
Partners
Systems
Systems
JDA - MMS - WMS PICS
Shoppers Stop implemented the JDA Retail Merchandise Management System (MMS) First retailer in Asia to implement the state-of-the-art ERP
MMS Triggers
Auto Purchase Order
Pre-determined level of minimum stocks for core styles at distribution center Drop in level generates an Auto Purchase Order to the vendor
Auto Replenishment
Pre-determined level of minimum stocks for core styles at each store Drop in level generates an Auto Replenishment command at SKU level to the concerned distribution center Daily Auto Replenishment to all 15 stores
The WMS
Warehouse Management System
Prior to WMS, inventory was monitored manually and transfers required more than 96 hours With WMS, entire process controlled electronically Transfers are executed in 24 hours
Ability to match physical stock with systems stock on a daily basis without affecting day to day operations
Logistics
Logistics
4 Dedicated Distribution Centers, covering 85,000 sq ft, supply merchandise to 15 stores across the country Distribution Center Management is outsourced to and managed independently by regional service providers Regional Distribution Centers connected online to the central systems.
Chennai Hyderabad
Distribution Centers
Store
Store
Northern Region
Store
Eastern Region
Operations Outsourced
Reverse Logistics BConnectB WMS
Store
Store
Southern Region
New Initiatives
Intake Consolidation
Also known as the Milk Run Currently for Own Brand Partners Delivery Authorization indicating quantity to be received for the week National Transporter to follow up with vendors for merchandise One truck to visit and collect goods from the vendors Distribution center is informed of the ETA Delivery status monitored and tracked through website
Partners
Partners
To ensure smooth flow of merchandise through the entire supply chain To improve the visibility and velocity of information through supply chain Partners can proactively improve efficiency and business results
B2B
BConnectB from Siemens Launched in 2002 with less than 10 partners Currently 150 partners connected online with Shoppers Stop Features include Order Processing Purchase Orders Receipt Details Payment Ledger Details Sales & Stock Style-wise / location-wise
B2B Advantages
Reduction in communication expenses Faster information exchange with Business Associates Frees up executive time for other value added activities On line information of sales and stock to vendors which increases service levels
Source Tagging
Bar codes capturing style and price details are attached to the merchandise at the partners premises Ensures smooth flow of merchandise through the supply chain and reduces turnaround time
New Initiatives
Auto Style Set-up
Currently Shoppers Stop team creates styles manually The printed barcodes are then sent through courier In Auto Style Setup partner sets up the style codes (based on a standard template) and prints the barcodes at his end The entire file is sent electronically to Shoppers Stop Details of style codes to be uploaded directly into the ERP Shoppers Stop B&M team to only fill in quantities Reduces courier cost and turnaround time
Systems
Logistics
Infrastructure - Scalability to 50 stores Delivery Mechanism - Turnaround time 24 hrs Intake Consolidation - Cost Savings
Partners
B2B - Seamless Integration Source Tagging - Seamless merchandise flow Receipts - 100% reconciliation Direct Store Delivery - 20% of merchandise
Financial Impact
D&L Expenses TURNOVER Year 2001-02 2003-04 (Rs Crores) 249.5 404.5 (Rs Crores) 2.64 3.35 EXPENSE % to Turnover 1.06% 0.83%
Financial Impact
Shrinkage at Store Level TURNOVER Year 2001-02 2003-04 (Rs Crores) 249.5 404.5 (Rs Crores) 1.65 1.62 Shrinkage % to Turnover 0.66% 0.40%
Service Standards
Shipments Allocated v Shipments Executed Month April-01 April-04 Allocated 2,410 11,537 Shipped 2,187 11,366 Percentage 91% 99%
Competitive Advantages
Customer
Improvement in CSI from 62 to 65 through better availability of merchandise.
Partner
B2B, Auto P.O and Source Tagging ensures faster transactions B2B will drive seamless integration between Shoppers Stop and Partners in the future Partner Satisfaction Index will strengthen partnership
Stakeholder
Leverage SCM strength for multi-fold growth at lower cost Reduction in shrinkage resulting in higher profit
Tangible Benefits
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Merchandise Availability Correct Product and Price information Timely Payments Greater Efficiency Growth Profitability Lower distribution cost Greater efficiency in executive time Scalability to 50 stores
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Transparency Partnership
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