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PGDM- RM (2009-11)
I. This process eliminates the time taken to . monitoring the flow of information and ensuring just-in-time deliveries. vendors manage the inventory at every store. they should be able to deliver the right quantities as well. COURSE TOPICS: 1 Vendor Management 2 Purchase 3 Inventory control 4 Warehouse Management 5 Transportation Certain terminologies: ELECTRONIC DATA INTERCHANGE(EDI): It helps in establishing an efficient information flow on stock movement. email: tripti. The right hit ratio measures the gap between delivery and purchase orders and helps eliminate backlog in deliveries. They should understand the impact of supply chain management on the competitive success and profitability of modern organizations (retail players). Vendor Managed Inventory (VMI) is ideal for retail organizations as it totally eliminates inventory-carrying costs. II LEARNING OUTCOMES: Efficient Vendor Management involves selecting the right vendors capable of giving the right quality of merchandise and meeting delivery deadlines. Business performance could be improved by gathering information about the different vendors and using the data gathered to determine the optimum vendors to retain thereby sourcing the best products and services. thus reducing the scope for mark-down losses for the store. and the vendors get to know of sales and inventories instantaneously. In a chain store scenario. Reorder supplies are immediately planned and executed by the vendors following acceptable norms.ac. Tripti Ghosh Sharma. Here.in. With this backdrop.Prof. vendors directly delivering to stores is an important element in attaining good supply chain efficiency. The vendors are able to take slow-selling and non-moving merchandise.sharma@iilmgsm. Students should be made aware of the demands placed on purchasing and supply chain managers by business stakeholders. so that the retailer can get the right ‘hit ratio’. III. Cabin # 215. COURSE OVERVIEW: A vendor management process is used by an enterprise to manage multiple vendors that offer products/raw materials and services. The vendors directly manage inventories in a few retail organizations. Besides .
transporting the merchandise. quantity and price. The reverse ITN (ITN out) is prepared when goods are sent back to the warehouse by the retail store.Monczka. and sending returned merchandise to vendors back as returns or for refinishing. etc. At a micro level of handling .Dobbler. quantity. Handfield Purchasing and material management.exchange documents for placing orders. Trent. Then . thus achieving just-in-time inventory management. IV. The merchandise is then docked and tagged with bar codes and price tags if applicable. Cost efficiency and reduction in delivery time are critical success factors in transportation. it saves a great deal of time for the retail organization. BOOKS AND REFERENCES: References: Purchasing and SCM. If the bar coding for MRP has already been done by the vendor. INTER-TRANSFER NOTE(ITN): This is made when the prepared and readied merchandise is supplied to the retail stores. receiving goods returned from retail stores. most of the time garments are delivered by hangers and sometimes by the browser itself in a ready-to –sell state. EDI is done through web-enabled servers or with the help of the organization’s Enterprise Resource Planning package that interacts with the vendor’s systems. only the security tagging needs to be done at the warehouse. The GRN is then automatically recognized by the system after authorization for payment to the vendor by the accounts department. GOODS RECEIVED NOTE(GRN): It is prepared when the merchansdise received at the warehouse from suppliers /vendors is checked and matched with the relevant purchase order(po) after certifying all the elements of quality. MATERIAL HANDLING EQUIPMENT: Material Handling Equipment in the warehouse should be tailored for specific varieties of merchandise. The system recognizes the same and raises a debit note to the vendors. if any. WAREHOUSE MANAGEMENT: The retail warehouse or the distribution centre performs the functions of receiving the ordered stocks. ASSESSMENT CRITERIA: . Lee The art of retailing-A J Lamba Retail marketing management-David Gilbert Journals/Magazines: Journal of Retailing European Journal of Operational Research Production and Operations Management European Journal of Purchasing and Supply Chain Management Online Resources: Instructors’ handouts V. TRANSPORTATION: It is done according to timely delivery schedules so that replenishments are delivered as per the plan. Docking also ensures that the First In First Out(FIFO) delivery plan is followed so that ageing of merchandise in the warehouse is kept to the minimum. tagging the merchandise with both the MRP and security tags. checking for the right quality. Goods that are returned to the warehouse are then sent back to the suppliers and vendors.. EFFICIENT DOCKING: This plan ensures the best utilization of space. temporary storing and docking. preparing and readying the merchandise.
Synthesis for application Mid Term Test Logistics Management-Physical flow of Merchandise Importance and functions of a Distribution Centre Freight management/Transportation. ABC concept. Handfield -do- 15 16 17 18 19 20 21 22 23 24 .Monczka. MRP system Order quantity determination. Trent. selection and measurement Supplier quality management Strategic cost management Negotiation Managing Contracts Inventory management Principles: Function and Definition of Inventories. EOQ concept.No 1 2 3 Parameter Mid Term Test Project End Term Weightage 20% 20% 60% SESSION PLAN Session 1 2 3-4 5-6 7 8 9-10 11 12 13-14 Topic Introduction The Purchasing process Purchasing policy and procedures In sourcing/Outsourcing Supplier evaluation. Order point system. Handfield -do-do-do-do-do-do-doPurchasing and material managementDobbler. Lee -do-do-do-doThe art of retailingA J Lamba -do-doPurchasing and SCM. Quantity discounts Order point and Safety stock. Trent.S.Monczka. Application of MRP Responsibility for Inventory management. Trends affecting Transportation Reference / Reading Purchasing and SCM. Flow control system. Dependent and Independent demand Cyclical ordering system. Developing Transportation strategies Controlling transportation. Incremental costs Inventory management Practices: Application and Limitations of EOQ.