CpLlmlzaLlon of Supply Chaln

uslng 8llu Lechnology

8y
Lakshml u
Ind|an keta|| Sector
@he lndlan reLall lndusLry ls dlvlded lnLo organlsed and unorganlsed secLors
Crganlsed reLalllng refers Lo Lradlng acLlvlLles underLaken by llcensed reLallers
LhaL ls Lhose who are reglsLered for sales Lax lncome Lax eLc @hese lnclude
Lhe corporaLebacked hypermarkeLs and reLall chalns and also Lhe prlvaLely
owned large reLall buslnesses unorganlsed reLalllng on Lhe oLher hand refers Lo
Lhe LradlLlonal formaLs of lowcosL reLalllng for example Lhe local kltooo shops
owner manned general sLores pooo/beeJl shops convenlence sLores hand carL
and pavemenL vendors eLc
lndla's reLall secLor ls wearlng new cloLhes and wlLh a Lhreeyear compounded
annual growLh raLe of 4664 per cenL reLall ls Lhe fasLesL growlng secLor ln Lhe
lndlan economy
@he lndlan reLall secLor ls hlghly fragmenLed wlLh 97 per cenL of lLs buslness belng
run by Lhe unorganlzed reLallers llke Lhe LradlLlonal famlly run sLores and corner
sLores @he organlzed reLall however ls aL a very nascenL sLage Lhough aLLempLs
are belng made Lo lncrease lLs proporLlon Lo 910 per cenL by Lhe year 2010
brlnglng ln a huge opporLunlLy for prospecLlve new players @he secLor ls Lhe
largesL source of employmenL afLer agrlculLure and has deep peneLraLlon lnLo
rural lndla generaLlng more Lhan 10 per cenL of lndla's Cu
Cver Lhe pasL few years Lhe reLall sales ln lndla are hoverlng around 3333 per
cenL of Cu as compared Lo around 20 per cenL ln Lhe uS
tce 1be colst
8eLall @rade lndla uS and Chlna
@rade (uS$ bllllon) LmploymenL ( ) Shops (mllllon) CrganlzedsecLor share ( )
lndla
180394 7 12 23
Chlna
360 12 27 20
uS
3800 12616 133 80
tce l1 ketollloq Ate lo 1be lp?
8eLaller CurrenL lormaL newlormaLs LxperlmenLlngwlLh
Shopper's SLop ueparLmenL SLore Cuaslmall
Lbony ueparLmenL SLore Cuaslmall smaller ouLleLs addlng food reLall
Crossword Large booksLore Corner shops
lramyd ueparLmenL SLore Cuaslmall food reLall
anLaloon Cwn brand sLore PypermarkeL
Subhlksha SupermarkeL Conslderlngmovlng Lo selfservlce
vlLan SupermarkeL SuburbandlscounL sLore
loodworld lood supermarkeL Pyper markeL loodworld express
Clobus ueparLmenL SLore Small fashlon sLores
8ombay8azaar AggregaLlonof klranas
LfoodmarL AggregaLlonof klranas
MeLro Cash and Carry
S kumar's ulscounL SLore
AL presenL Lhere are 30 hypermarkeLs operaLed by four Lo flve large
reLallers spread across 67 clLles caLerlng Lo a populaLlon of halfa
mllllon or more LsLlmaLes lndlcaLe LhaL Lhls secLor wlll have Lhe
poLenLlal Lo absorb many more hypermarkeLs ln Lhe nexL four Lo flve
years(Source AC nlelsen Survey March 2011)
@hls has lead Lo more complex relaLlonshlps lnvolvlng suppllers
Lhlrd parLy dlsLrlbuLors and reLallers whlch can be dealL wlLh Lhe
help of an efflclenL supply chaln A proper supply chaln wlll help
meeL Lhe compeLlLlon headon manage sLock avallablllLy suppller
relaLlons new valueadded servlces cosL cuLLlng and mosL
lmporLanLly reduce Lhe wasLage levels ln fresh produce
@hls has lead Lo more complex relaLlonshlps
lnvolvlng suppllers Lhlrd parLy dlsLrlbuLors and
reLallers whlch can be dealL wlLh Lhe help of an
efflclenL supply chaln A proper supply chaln wlll
help meeL Lhe compeLlLlon headon manage
sLock avallablllLy suppller relaLlons new value
added servlces cosL cuLLlng and mosL
lmporLanLly reduce Lhe wasLage levels ln fresh
produce
Supply Chaln ln 8eLall
roblem areas ln reLall Supply Chaln
W Warehouslng (ulsLrlbuLlon CenLre Lo reLall)
W SLock replenlshmenL
W @racklng Lhe Skus
W uemand ManagemenL
W Crder fulflllmenL (urchaslng8llllng)
W ShopllfLlng (SecurlLy)
All Lhe above are lnLerllnked and Llme consumlng
acLlvlLles
Cne SoluLlon for Lhls problem of delay ln Lhese supply
chaln acLlvlLles ls 8llu Lechnology
WhaL ls 8llu and how lL helps ln reLall
W 8llu ls one of Lhe key Lechnologles
Lransformlng Lhe lndusLry enabllng producLs
Lo be easlly Lracked elecLronlcally aL any sLep
ln Lhe supply chaln
W lL has Lhe poLenLlal of helplng reLallers provlde
Lhe rlghL producL aL Lhe rlghL place aL Lhe rlghL
Llme Lhus maxlmlzlng sales and proflLs
W lL promlses Lo speed supply chaln operaLlons
by auLomaLlcally Lracklng of goods
AuvAn@ACLS
W lL uses elecLronlc Lags for sLorlng daLa and
ldenLlfylng lLems
W lL ls capable of LransmlLLlng a unlque serlal
number aL a dlsLance of several meLers ln
response Lo a query from a readlng devlce
W 8y addlng 8llu Lags Lo every producL
manufacLurer wlll be able Lo geL beLLer
demand slgnals from cusLomers and markeL
W lL has Lhe poLenLlal of helplng reLallers provlde
Lhe rlghL producL aL rlghL place aL rlghL Llme Lhus
maxlmlzlng sales and proflLs
W CrganlzaLlons are able Lo llnk physlcal world Lo
Lhe dlglLal world wlLhouL any human lnLeracLlon
W lL has poLenLlal Lo lmprove efflclency and
vlslblllLy cuL cosLs produce hlgher quallLy goods
lncrease sales by reduclng ouL of sLocks
ALlCA@lCnS
W @he poLenLlal appllcaLlons are vasL as lL ls relevanL
Lo any organlzaLlon engaged ln producLlon and
sale of goods whlch lncludes reLallers
dlsLrlbuLors hosplLals and pharmaceuLlcals and
Lhe enLlre food chaln
W Mllllons of peLs around Lhe world have surglcally
embedded 8llu Lags LhaL make lL easy Lo ldenLlfy
when Lhey are losL
W Alrllnes lndusLry can Lag baggage Lo Lrack when
Lhey geL losL
8llu aL WalMarL
8llu worklng
8lbllography
W ArnLzen 8 C C C 8rown @ Parrlson and L @rafLon Clobal Supply Chaln ManagemenL aL ulglLal
LqulpmenL CorporaLlon lotetfoces !anleb 1993
W AC nlelsen 8eLall 8eporL 2011
W 8allou 8 P 1992 sloess lqlstlcs Moooqeeot renLlce Pall Lnglewood Cllffs n! @hlrd LdlLlon
W 8relLman 8 L and ! M Lucas 1987 LAnL@S A Modellng SysLem for 8uslness lannlng lotetfoces 17
!anleb 94106
W Cohen M A and P L Lee 1983 ManufacLurlng SLraLegy ConcepLs and MeLhods ln klelndorfer 8 Ld
1be Moooqeeot f ltJctlvlty ooJ 1ecbolqy lo Moofocttloq 133 188
W Cohen M A and P L Lee 1988 SLraLeglc Analysls of lnLegraLed roducLlonulsLrlbuLlon SysLems
Models and MeLhods petotlos keseotcb 36 2 216228
W Cohen M A and P L Lee 1989 8esource ueploymenL Analysls of Clobal ManufacLurlng and
ulsLrlbuLlon neLworks tool f Moofocttloq ooJ petotlos Moooqeeot 81104
W Cooper M C and L M Lllram 1993 CharacLerlsLlcs of Supply Chaln ManagemenL and Lhe lmpllcaLlons
for urchaslng and LoglsLlcs SLraLegy 1be lotetootlool tool f lqlstlcs Moooqeeot 4 2 1324
W ueuermeyer 8 and L 8 Schwarz 1981 A Model for Lhe Analysls of SysLem Servlce Level ln Warehouse/
8eLaller ulsLrlbuLlon SysLems @he ldenLlcal 8eLaller Case ln L 8 Schwarz (ed) tJles lo Moooqeeot
cleoces vol 16MulLlLevel roducLlon / lnvenLory ConLrol SysLems norLhPolland AmsLerdam 163
193
W Ceoffrlon A and C Craves 1974 MulLlcommodlLy ulsLrlbuLlon SysLem ueslgn by 8enders
uecomposlLlon Moooqeeot cleoce 29 3 822844
W Ceoffrlon A and 8 owers 1993 20 ?ears of sLraLeglc ulsLrlbuLlon SysLem ueslgn An LvoluLlonary
erspecLlve lotetfoces (forLhcomlng)
W Poullhan ! 8 1983 lnLernaLlonal Supply Chaln ManagemenL lotetootlool tool f lbyslcol
ulsttlbtlo ooJ Motetlols Moooqeeot 13 1 2238
W Lee P L and C 8llllngLon 1992 Supply Chaln ManagemenL lLfalls and CpporLunlLles loo
Moooqeeot kevlew 33 Sprlng 6373
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