Logistics in Retail

Ankit Singh
Alok Sharma
Atulesh Kumar
Bibhu Raj
Sunny Jaiswal
Preeti Singh
Flow of Presentation
Logistic Scenario in Retail
Brief about Shoppers’ Stop
DC & 3PL
Operations
Past Situation
Systems
– MMS
– WMS
Conclusion
In India, the logistics market for organized
retail is pegged at $50 million and is growing at
16%. It is expected to reach $120-$130 million
by 2010.

Organized retail on the other hand is growing

at 40% and is around $13 billion.

Logistics management cost component in India

is as high as 7% -10% against the global average
of 4% - 5% of the total retail price.

Challenges in Indian Retail Logistics: Curtailed

due to infrastructure constraints & the wider
range of products.
 Shopper’s Stop business has grown from one store in
Mumbai in 1991 occupying an area of approximately 0.05
million square feet to approximately 1.50 million square feet
across twenty seven (27) (includingHomeStop) stores
located in the cities of Mumbai, Delhi, Kolkata, Chennai,
Bangalore, Hyderabad, Pune,Jaipur, Lucknow, Gurgaon,
Ghaziabad and Noida.
Format Name No.
Departmental Shopper’s Stop 24
Store Home Stop 3
Speciality Store Crossword (book store) 48
MotherCare(babies, expecting mothers) 18
Brio(F&B) 20
DesiCafe(F& B) 3
Arcelia(cosmetic, jewellery handbags.) 2
Timezone (entertainment) 6
MAC(cosmetic) 4
Hpermarket Hypercity 1
 Shopper’s Stop business has grown from one store in
Mumbai in 1991 occupying an area of approximately 0.05
million square feet to approximately 1.50 million square feet
across twenty seven (27) (includingHomeStop) stores
located in the cities of Mumbai, Delhi, Kolkata, Chennai,
Bangalore, Hyderabad, Pune,Jaipur, Lucknow, Gurgaon,
Ghaziabad and Noida.
Format Name No.
Departmental Shopper’s Stop 24
Store Home Stop 3
Speciality Store Crossword (book store) 48
MotherCare(babies, expecting mothers) 18
Brio(F&B) 20
DesiCafe(F& B) 3
Arcelia(cosmetic, jewellery handbags.) 2
Timezone (entertainment) 6
MAC(cosmetic) 4
Hpermarket Hypercity 1
 Four Distribution Centers covering 303,382.20 square feet
servicing departmental stores and specialty stores across
the country.

Handling over 400,000 SKUs per year, and working 24x7.

City Region Stores Serviced

Mumbai Western Mumbai, Pune, Ahmedabad
Delhi Northern Delhi, Gurgaon, Jaipur, Lucknow,
Noida, Ghaziabad
Bangalore Southern Bangalore, Hyderabad, Chennai
Kolkata Eastern Kolkata

The Distribution Center management is outsourced to

service providers such as Toll (India) Logistics Private Limited.
Key features of “Upasna Trading Limited” agreements
with service providers as applicable to us:

Service providers to receive goods from our vendors through

the nominated carriers on door delivery

Service providers to be fully responsible for any loss or any

damages to the goods, if it fails to follow the prescribed
procedure

The title of all the goods shall be at all times with us till
they are sold to a third party

The service providers shall be responsible for maintaining all

waybills, updating records in the register and also submitting
them back to the Sales Tax Department.
IT Backbone

Entire organization is networked and connected

with the 27 stores and 4 Distribution Centers
(warehouses) linked up to the Services Office
through high speed leased line.

Have almost 600 point of sales machines and over

1000 desktops or laptops connected to over 75
servers spread across our different locations,
through leased lines and Integrated Services
Digital Network (ISDN).
 Shopper’s stop Foot Print

Delhi

Jaipur Gurgaon

Ahmedabad
Kolkata

Mumbai
Pune

Hyderabad

Bangalore Distribution Centre

Major Store Locations

Chennai
The Past Situation of SCM
Turnaround time: 4 days
Poor hit rate from partners
Difficulty in tracking merchandise
No sharing of inventory data with partners
High Distribution Cost
High inventory
High Shrinkage
Shutting down all operations for 48 hours for
annual stock take
High variance between books stock and physical
stock
Inefficient use of executive time
Systems
Shoppers’ Stop implemented the JDA Retail Merchandise
Management System (MMS) in 1999.
First retailer in Asia to implement the state-of-the-art ERP

Merchandise Management System

An end to end solution for managing merchandise throughout
the chain.
Right from purchase orders, to sales, to replenishment, to
markdown and inventory management.
A integrated online system connected with the backend, fron
end (stores) and the distribution centers.
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
Warehouse Management System

Shoppers’ Stop implemented the WMS in 2001, for

distribution & logistics.

WMS enable the space planning and also integrated SKU

location which enable faster picking and putting of
merchandising.
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.

The WMS Process
Distribution Center mapped onto a rack and bin system

Calculates storage capacity

Allocates designated area to each product category

through PUT AWAY document

PICK LIST identifies exact location of merchandise at

SKU level

Maintains records of perpetual inventory online

Minimize shrinkage

Reduces turnaround time to 24 hours

 Outbound Logistics

Partner 0 Western
Store Store
Region
Mumbai DC
Partner 1
Store Store Northern
Delhi DC Region

Partner 2 Eastern
Store Store
Kolkata DC Region

Partner 3
Bangalore DC Store Store Southern
Region
Operations Outsourced

BConnectB Reverse WMS Win DSS /

Logistics MMS
 Strategic Actions
Systems
JDA - MMS - WMS
-Improved Efficient
Consumer Response

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