INTRODUCTION

Supply chain management is a topic of importance among the logistic researchers

because it is consider with a competitive edge. Supply chain management deals with
the management of materials, information and financial flows in a network consisting
of suppliers, manufactures, distributes and customers.

The role of supply chain in the organized retail sector in India should be a shelf- centric
partnership between the retailer and the manufacture for this will create supply chains
that are loss free. This will also give rise to top and bottom line growth. In the
organized retail sector in India the presence of fresh produce (vegetables and fruits) is
very small. This is so for the nature of supply chain is very fragmented. This shows the
important role of supply chain in the organized retail sector in India.

The success in this competitive and dynamic sector depends on achieving an efficient
logistics and supply chain, which can be provided by professionals, as they combined
the best systems and expertise to manage a ready flow of goods and services.

OBJECTIVE OF SUPPLY CHAIN IN RETAIL

 Enhancing customer service
 Expanding sales revenue
 Reducing the inventory cost, transportation cost and warehouse cost
 Reducing the lead time and the order to delivery cycle time
 Expanding the sales revenue
 Expanding the width of channels of distribution

NEED OF SUPPLY CHAIN IN RETAIL

 Cost cutting
 Time saving
 Customer satisfaction
 Increase profit margins
 DIFFERENT FLOWS OF SUPPLY CHAIN

There are three different types of flow in supply chain management −

 Material flow
 Information/Data flow
 Money flow

PROCESS VIEW OF SUPPLY CHAIN IN RETAIL

1. CYCLE VIEW OF SCM

 Each cycle occurs at the interface between two successive stages.
 Replenishment Cycle (Retailer-distributor)
 Manufacturing cycle (Distributor-manufacturer)
 Customer order cycle (Customer-retailer)
 Procurement cycle (Manufacturer-supplier)
2. PUSH/PULL VIEW OF SCM
 FUNCTIONS OF RETAIL SUPPLY CHAIN
 Physically movement of goods from one outlet to another
 Stocking the good at the outlets where needed
 Management of the entire process

RETAIL LOGISTICS

 ‘Retail logistics’ is the organist process of managing the flow of merchandise

from the source of supply to the customer.

 Large retailers deal in a wide variety of products. This has created a need for a
systematic planning of movement of numerous goods until they are delivered to
the customer. Retail logistics ensures that everything is in place to offer better
delivery and service at lower prices by way of efficient logistics and added value.

RETAIL LOGISTICS STRATEGY

Retail logistics is the organized process of managing the flow of merchandise from the
source of supply to customer.

The main objectives of logistics management is to reduce the inventory- holding cost
and improve cost.

 Warehouse location strategy

 Distribution strategy
 Material handling strategy
 Design of warehouse
 Load, mode, flow, root optimization
 SUPPLY CHAIN MANAGEMENT INTEGRATION IN RETAIL ORGANIZATION

NEW EMERGING CONCEPTS OF LOGISTICS

Third part logistics: Supply of logistics related operations between traders by an

independent organizations.

Fourth party logistics: It refers to the evolution in logistics from suppliers focused on
warehousing and transportation to suppliers offering a more integrated solution.

Reverse logistics: Process of moving goods from their typical final destination, for the
purpose of capturing the value or proper disposal.
ROLE OF SUPPLY CHAIN IN NEW RETAIL SCENARIO