Supply

Supply Chain Supermarkets

Management

At

Haiko

After setting up the Haiko Supermarket spread over 10,000 sq ft at Hiranandani Gardens, Powai, Mumbai, the Hiranandani Group promoted Lakewood Malls Private Ltd is now planning to launch four more Haiko Supermarkets in Mumbai suburbs namely Andheri, Mulund, Kandivali and Santacruz, within a year. As part of its expansion plan, the company is for the first time planning to upgrade its existing supply chain management (SCM) from a manual paper work to new information technology initiatives, very soon. According to Mr Susil Dungarwal, customer care executive and chief manager (development and operations), Lakewood Malls Private Ltd, with this move, the company is in the process of implementing an enterprise resource planning (ERP) system which is developed in-house by Hirandani Software Private Ltd, part of the Hiranandani Group.Explains Mr Dungarwal: In order to set-up the system, we have invested approximately Rs 40 lakh which is included in the Rs 3 crore infrastructure cost. As part of its new SCM plans, the company is for the first time planning to set-up a new central distribution centre with the base of a central processing unit at Andheri in Mumbai, soon. Prior to the move, the company is subsequently also in the process of shifting its existing warehousing facility for Haiko Supermarket from Powai to Andheri, Mumbai, adds Mr Dungarwal. In order to set-up a central processing unit, the company is planning to invest around Rs 5 to Rs 6 lakh, on vendor relationship management (VRM), and, for setting up a warehousing facility, the company is making investments to the tune of Rs 3 crore, including the infrastructure cost, soon, informs Mr Dungarwal. The New Focus As for the rationale behind the move, explains Mr Dungarwal: The new ERP system will enable us to have a direct access and interconnectivity with our existing 480 vendors, 140 distributors (spr-ead to the ratio of 80:20 from Mumbai and rest of India), respectively, and, the additional four Haiko Supermarket which we plan to set-up in Mumbai. Further Mr Dungar-wal adds that the new SCM will bring up the efficiency of the chain in terms of saving logistics cost, improve availability of the products on the shelf and hence increase business. This will also add-up to reducing of back stocks and hence save on the working capital. Stocks Replenishment Apart from the above move, the company is also planning to strongly focus at enhancing its vendor relationship management (VRM) so that vendors are able to replenish stocks at Haiko Super market at any given point of time, and with effect, the products are available to the customers visiting Haiko Supermarket at any given point of time, explains Mr Dungarwal. With the move, we hope to increase the stock replenishment at Haiko from 16 times a year to 20 times in the coming months, he adds. VRM programme As part of the vendor relationship management programme, informs Mr Dungarwal: We have co-ordinated with at least 80 farmers based in Nasik, Kolhapur, Thane, among others, and educated them on the kind of clean and packaged fruits and vegetables that are required by Haiko Supermarket. This is because, being an eco-friendly store, Haiko uses only biodegradable paper and recyclable plastic bags. Sensitive to the hygiene of the customers, it is ensured that the fresh fruits and vegetables are packed in hygienic packs, for the first time in the country. With this move, the company plans to integrate its back-end distribution, he reasons. According to Mr Dungarwal: Under the VRM, we would be setting up a team of professionals who would be in constant touch with the vendors to sort out any issues to increase and strengthen the relationship. We are also planning to have Vendor Summits in a year so that we can all together pull in ideas of development and better support. The companys first Haiko Supermarket which is based in Powai operates four categories such as Fast Moving Consumer Goods (FMCG) from branded companies, Packaged Fruits and Vegetables from farmers spread across Nasik, Kolhapur, Thane, among others, home utensils and accessories sourced within the country, and, cosmetics.

As part of its existing SCM network, Haiko Supermarket is sourcing these products through 480 vendors and 140 distributors. Reasons Mr Dungarwal: So far, the supermarket is interconnected with its entities through a manual paperwork as of 480 vendors, only 120 vendors have an access to email IDs and equipped with information technology. According to Mr Dungarwal, Haiko would also with this move into the open to buy (OTB) stage wherein the minimum and maximum base stocks would be frozen at every season and the respective buyer or vendor will be able to process/supply the stocks to the central distribution centre without any approvals. This in turn will increase the replenishments of the stocks and increase stock turns, thus bringing in better profitability.