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Indian Retail Supply Chain Issues

The document discusses challenges in the Indian retail supply chain, including credit defaults that can lead to supply breakages, inability to build a robust IT network, and dead inventory. It also notes problems with poor inventory turns, lack of integration between retailer and supplier operations, supplier maturity issues, and high inventories due to state-level sales tax laws. Potential solutions discussed include implementing collaborative planning, forecasting and replenishment (CPFR) and leveraging replenishment practices from other industries. Key supply chain metrics like weeks of supply and on-time delivery are also mentioned.

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83 views11 pages

Indian Retail Supply Chain Issues

The document discusses challenges in the Indian retail supply chain, including credit defaults that can lead to supply breakages, inability to build a robust IT network, and dead inventory. It also notes problems with poor inventory turns, lack of integration between retailer and supplier operations, supplier maturity issues, and high inventories due to state-level sales tax laws. Potential solutions discussed include implementing collaborative planning, forecasting and replenishment (CPFR) and leveraging replenishment practices from other industries. Key supply chain metrics like weeks of supply and on-time delivery are also mentioned.

Uploaded by

varun_146100
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

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

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