Professional Documents
Culture Documents
Departmental Stores
Submitted by
Dnyaneshwari N (95)
References
• Mr.Devdas- Logistics Head – Shoppers’ Stop
• Mr.Gopal – Head Men’s Division – Shoppers’ Stop
• Mr.Yunus – Purchase Manager – Akbarally’s
Shopper’s Stop Profile
Operating Costs - The logistics cost equals to 1% of the total turnover and includes
the follow expenses Warehousing (OH, rents, staff, facilities), Transportation,
Handling charges, Allocated Expenses, Re-packaging
Supply Chain
• Entire network of entities, directly or indirectly interlinked and interdependent in
serving the same consumer or customer
• It comprises of
• vendors that supply raw material
• producers who convert the material into products
• warehouses that store
• distribution centers that deliver to the retailers
• retailers who bring the product to the ultimate user
• Supply chains underlie value-chains because, without them, no producer has the ability
to give customers what they want, when and where they want, at the price they want
• Producers compete with each other only through their supply chains, and no degree of
improvement at the producer's end can make up for the deficiencies in a supply chain
which reduce the producer's ability to compete
SWOT – Supply Chain
Manufacturer
Delivery Authorization
Payment to manufacturer
Stocks updated in-store
• if the PO (6monthly for 2 seasons) for all 13 stores is 5000 and for a
particular week shoppers stop sells 500 shirts, it will send a DA for 500 shirts
Illustration
D) DC’s check the details (date, number) of the product and match it with the
invoice
F) Once the confirmation is sent by the DC, the stocks are transported to the
• Regional Warehouses
• No in-store warehouses
• Number of warehouses - 4
• Location – Metros (Mumbai, Delhi, Banglore, Calcutta)
• Floor Area – 20,000 to 22,000 sq.ft
• Transportation from warehouse to Store – Done by the DC’s
Distribution Centers
Distribution Center - Facility that is usually smaller than a firm's main
warehouse and is used for receipt, temporary storage, and redistribution of goods
according to the customer orders as they are received
• Each of the distributions centers has a floor area of around 22000 sq.ft
• . When a delivery comes in the person in-charge feeds in the details like
merchandise type, brand name, size, color, batch number, date, etc. the system
give him a ticket describing where the merchandise has to be kept
• Since, for many firms, inventory is the largest item in the current
assets category, inventory problems can and do contribute to losses
or even business failures
• 90 departments - each day one department is frozen after closing hours and the
staff is made to scan the tags and feed in the stock levels in the system
• The staff is completely unaware of the stock levels according to the system
• The system then compares the actual to the customary and gives a variance
reports
• Thus there is stock matching done everyday and the entire store completes a
• Shoppers’ Stop has determined its minimum stock keeping units and as soon as
the stocks in the store touch that level, the DC is triggered to send the
replenishment
• Thus the system automatically checks for stock out and replenishes it
• During the day the dispatched is made ready and the next day morning 6.00am
the truck leaves reaching the store in an hours time
Inventory Management
• The minimum units are fixed which are based on the past lows
and highs
Sales Forecast
• Sales forecast for the spring summer season (1st April to 30th September) is
done on 1st October, six months in advance
• Eg - Shoppers’ Stop has targeted a business of 1crore with Arrow for its
Andheri branch for the year 2003-04
• i.e., needs to stock shirts worth 1.46 lakhs & trousers worth 0.62
lakhs of trousers for a week
• Outright Model
• Consignment Model
• Concession Model
Systems
Positioning - Marketing strategy that aims to make a brand occupy a distinct 'position,'
relative to the competing brands, in the mind of the customer. Firms apply this strategy
either by emphasizing the distinguishing features of their brand (what it is, what it does
and how, etc.) or try to create a suitable image (inexpensive or premium, utilitarian or
luxurious, entry-level or high-end, etc.) through advertising
Family store, where one can satisfy the needs of the entire family
They have everything, from
• apparels
• gifts
• cosmetics
• appliances
• electronics
• home ware
• kitchenware, etc.
Customer Profile
Manufacturer
/Distributor
Godown
Godown Godown
(Crawford)
(Chembur) (Fort)
Market)
• decentralized procurement
• Most of the store procurement is from local players hence they procure just
in time
Disadvantages
• Loss of sale due to stock out
• No benefits of bulk buying – no discounts & credit period advantages
Buying Process
Disadvantages
• High warehousing costs
• Weak logistics systems
Purchase Manager
checks
2)Systems
3) Transportation
• Mfg /distributor to the Akbarallys Warehouse – Mfg /distributor’s
responsibility
• Warehouse to Store – In store warehouse so no transportation costs
• Inter Store Transfers – Courier
1) Buying Channel
Manufacturer
Central WH
1) Buying Channel
2) Centralized Warehousing
3) Outsource Logistics
4) Buying from Manufacturer
5) Inventory Management system