Lecture 4

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Supply Chains inIndia : 

Supply Chains inIndia

On the anvil: : 

On the anvil: Discussion Organised retail Reverse logistics Related issues Q&A

Discussion : 

Discussion What are the factors affecting supply chain in India ? Infrastructure Transportation Warehousing Capacity at modes of transport Demographic distribution Income distribution

Discussion : 

Discussion What are the factors affecting supply chain in India ? Last Mile problem Remotest end of an efficient FMCG supply chain falters nearer to customer Absence of good, credible and cost effective IT network Poor planning Crippled replenishment

Discussion : 

Discussion Success stories Amul Cold Supply chain Tremendous infrastructural constraints like Low temperature during processing , storage and transportation Airtel and IFFCO Collaboration Win win situation for all stake holders

Organised Retail : 

Organised Retail Examples: Multi format retail: Reliance, Spencer’s, Subhiksha etc Pharmacy: Apollo pharmacy, Medi plus etc Cell phones: Cell one, Universal, Sangeetha etc Apparel: Neeru’s, Brisah, Catmoss etc Jewellery: TBZ, Tanishq etc

Organised Retail : 

Organised Retail Supply chain advantages organised retail over unorganised retail Aggregation and consolidation of demand Better negotiating power Better distribution setup Better inventory management Stocking Replenishment Better cash flow management Handsome margins in co selling of in store brands

Organised Retail : 

Organised Retail Who suffers? Smaller shops and departmental stores Weak supply chain Cash crunch Maintaining variety and SKUs is costly affair e.g Ratnadeep Customer Distance Reduced variety Forced consumption of in house brands

Reverse Logistics : 

Reverse Logistics Definition: It is the process of moving goods from their typical final destination for the purpose of capturing value or proper disposal Why is it needed? Business requirements Unforeseen situations

Reverse Logistics : 

Reverse Logistics Business Requirements: Soft drink bottles to bottlers Dealer for second hand goods Local kabadiwala Maruti true value Goods returned for repair Discount schemes under exchange Corporate sponsored e.g. Nokia

Reverse Logistics : 

Reverse Logistics Business Requirements: Promotional schemes where lucky user gets some coupons etc Recycled paper and scrap iron Return of unsold goods

Reverse Logistics : 

Reverse Logistics Unforeseen situations: Part replacements e.g. Nokia battery Anticipative part/ product repair e.g. Prius recall Product replacement e.g. Mattel toys money back

Reverse Logistics : 

Reverse Logistics Supply chain implications: For business requirement Better forecasting can be maintained Established forward logistics channel maybe engaged Excise and Taxation implications are well understood For unforeseen situations Extremely costly affair Unplanned Speed of execution can impact company’s credebility

Related issues : 

Related issues What are similarities between supply chain in organized retail in developed world and developing world? Usage of technology like RFID Usage of plastic money Offer better services incl shopping experience Better distribution network Better integration with supplier Franchise model

Related issues : 

Related issues What are differences between supply chain in organized retail in developed world and developing world? Strict quality control Organised retail is limited to few big cities MRP forces retailers not to provide services in remote locations as cost of services increases

Related issues : 

Related issues Socio economic and political impact Attacking of reliance retail outlets in UP Kills local products and trade Introduces new products normally not available Becomes easy target during political upheavals Forces customer to buy high end products in each category to covers costs

Related issues : 

Related issues Socio economic and political impact Provides employment Kicks off side industries like Local logistics provider Cash counters Trolley manufacture Baskets etc

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