Decathlon

Report on Industrial Excursion At

SUBMITTED IN PARTIAL FULFILMENT OF THE REUIREMENT FOR THE A!ARD FOR POST "RADUATE DIPLOMA IN MANA"EMENT

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A03NO!LED"EMENT On the very outset of this report, we would like to extend our sincere & heartfelt obligation towards all the personages who have helped us in this end endeavo eavour ur..

Witho ithou ut

thei theirr

acti active ve

guida uidan nce, ce,

help help,,

coop cooper erat atio ion n

&

encouragement, we would not have made headway in the project. We are extremely thankful and pay our gratitude to B!"#$% faculties for this this valu valuab able le expe experi rien ence ce and and lear learni ning ng in a big big indu indust stri rial al r rm m lik like 'ecathlon. We extend our gratitude to Birla Institute o4 Mana5e$ent Tec6nolo5% for giving us this opportunity. (t last but not least gratitude goes to all of our friends who directly or indirectly helped us to complete this project report. (ny (ny omis omissio sion n in this this brie brieff ackn acknow owle ledg dgem emen entt does does not not mean mean lack lack of gratitude.







INTRODU0TION ABOUT DE0ATHLON& DE0ATHLON& Decat6lon is one of

the

world) rld)s s

lar largest gest sport portin ing g

goo goods retai etaile lers rs..

'ecathlon started with a store in *ille *ille,, +rance in -/, founded by !ichel *eclerc0.. t start *eclerc0 arted to expand pand abr abroad a deca decad de late later, r, to1ermany to1ermany in in -2/, 3pain in

--4, taly in

--2, 5ortugal 5ortugal,,

the 6n 6nit ited ed

7ing 7i ngdo dom m in

---, $hina in 4889, 4889, ndia in 488488- and and 3out 3outheast heast (sia in 484. 484. "oday, oday, there are more than 2:8 stores in 44 countries. "he company employs more than /8,888 sta; from 28 di;erent nationalities. "he retailer stocks a wide range of sporting goods, from tennis rackets to rackets to advanced scuba diving e0uipment, diving e0uipment, usually in large superstores which are si< si. >. 'eca 'ecatthlo hlon 1roup also also owns wns 48 brands, with resear research ch and development developmentfacilities facilities all over +rance to develop the latest innovative designs, registering up to =8 patents per year. #ach brand represents a di;erent sport or group of sports, with a dedicated product development and design team. n ndia, 'ecathlon products can be bought directly through their stores subse0uent to change in ndia)s +' policy and approval for 'ecathlon in +ebruary 489. n addition to this, 'ecathlon products are also available online through their partners like snapdeal. "he company currently caters to th the e de dema mand nds s of en enti tire re n ndi dia a th thro roug ugh h Be Beng ngal alur uru u War areh ehou ouse se.. "h "he e transportation activities are being handled by '%*. (ll such practices of selling through exclusive stores and online selling leads to lower costs. "he retailer develops and sells its own brands. #ach sport or group of sports has a separate brand name. name.







OB/E0TI.E "he objective of this report is to analyse the supply chain management of 'ecathlon. We will be discussing in detail how they are expanding in ndia from brick and mortar stores to online stores. We will be analysing how they are able to minimi
LITERATURE RE.IE! In7entor% Mana5e$ent and Its E8ects on 0usto$er Satis4action #% Scott "rant Ec9ert& "here are di;erent costs associated with inventory. inventory. "he holding cost is when when the the inve invent ntor ory y comp compri rise ses s of raw raw mate materi rial als, s, work work in proc proces ess, s, or nished goods. "he inventory cost is in the range of 48 to =8 percent of annual inventory in dollars. (nother variables associated with the holding cost is the opportunity cost, which comprises of any increase in rents due to the need for more space for inventory, higher rates for insuring the inventory, and the cost of goods that are outdated. !anufacturers and retai retailer lers s can incorp incorpora orate te techno technolog logy y to assist assist in the managi managing ng of this this inventory ?(tkinson, 488:@A.

Anal%sis o4 In7entor% 0ontrol Tec6ni:ues; A 0o$parati7e Stud%







3o inventory control is vitally important to almost every type of business, whethe whetherr produ product ct or servic service e orient oriented. ed. nvent nventory ory contr control ol touche touches s almost almost every facets if operations. ( proper balance must be struck to maintain prope properr invent inventory ory with with the minimu minimum m nanc nancial ial impact impact on the custom customer er.. nventory control is the activities that maintain stock keeping items at desired levels. n manufacturing since the focus is on physical product, inventory control focus on material controlA

In7e In7ent ntor or% % Mana Mana5e 5e$e $ent nt(( Intr Introd oduc ucin in5 5 a 4ra$ 4ra$e? e?or or9 9 to acce access ss Operational per4or$ance per4or$ance #% "uido 7an Hec9& ( good performance measurement tool is needed to provide a structured way to gain gain insigh insightt in invent inventory ory manage managemen ments ts busine business ss proce processe sses s by monitoring relevant metrics. 3uch a tool would also complement existing Business ntelligence literature. %ere lies the challenge of this research and therefore the corresponding research goal was formulated as followsC The resear research ch goal goal is to design design a tool tool for assess assessing ing invent inventory ory management’s performance

Besides Besides the goal stated stated above, above, this research research also entailed entailed a rst attempt attempt to actually nd 0uantitative proof for the possible improvements yielded by #D5A

Re7ers Re7erse e Lo5ist Lo5istics ics&& O7er7i O7er7ie? e? and 06alle 06allen5e n5es s 4or Suppl Suppl% % 06ain 06ain Mana5e$ent #% Ser5io Ru#io and Beatri@ /i$ne@(Parra& 3u

sful sful impl impl

tati tati

of D*

tw ks

ir

deci decisi si







deci decisi sion on maki making ng proc proces ess. s. n prac practi tice ce,, nume numero rous us D* netw networ orks ks can can be observed that depend on the nature of the returned product ?#o6, endEofE life, etc.@, the recovery process ?remanufacturing, reuse, recycling@, or the forwar forward d channe channell struct structur ure e ?centr ?centrali ali
and

indicating

critical

elements

in

their

design

and

implementationA

Re7erse Lo5istics& T6e !a% For?ard #% 0O"NIANT& ( focus on logistics and supply chain, as well as building Gexibility in serving customers, is important to retailers as they seek to create leaner processes and increase cost savings. "raditionally, retailers have placed greater attention on moving goods and materials forward in the supply chain, but a prevailing challenge is to move backwards. "he backward Gow of goods is referred to as Hreverse logisticsIJ the concept is premised on movi moving ng good goods s and and mate materi rial als s from from the the poin pointt at whic which h they they are are purchased or consumed, or moving them back to a previous supply chain point to recapture value. Within the retail industry, reverse logistics plays a critical role in consumer retur returns ns and how retai retailers lers proce process ss retur returns ns eFcien eFciently tly.. While While this this may appear to be a simple process of moving goods from customers to returns center centers, s, retai retailer lers s face face numer numerous ous operat operation ional al challe challenge nges. s. +or +or instan instance, ce,









BRANDIN" IN DE0ATHLON& (ptonia E Kutrition Kutrition and and %ealthcare (rtengo E Dacket 3ports B)"win E $ycling







7alenji E Dunning 7ipsta E " E "eam eam 3ports Kabaiji E 3wimming Kewfeel E Walking and 6rban Wear Orao E #yewear and Optical (ccessories Oxelo E Dollersports, 3kating and 7ick 3cooters Nuechua E Nuechua E %iking, $amping and Outdoor 1ear 3imond E !ountaineering 3olognac E %unting "ribord "ribord E Watersports Wed)e E 3kiing 3kiing and and 3nowboarding

METHODOLO"' "he 'ecathlon plant is divided into three chambersC "he rst two chambers cater cater to standard products products which make make up to 28P of their business products. "he dimension of box box si






"he division of 3tandard 3tandard and Kon 3tandard items is done in the ratio of 4C so as to optimi
Ded *ogistics mean loose stock Blue *ogistics indicate picking of boxes boxes ?in lots@

"here are two types of 'ecathlon warehousesC warehousesC • •

$($ ?$ontinental Warehouse@ $(D ?Degional Warehouse@

98P of the products present in warehouse are being exported. "he 'ecathlon plant has a daily daily manager who are responsible responsible for the safety of the warehouse and are being appointed in shifts.

"he movement of products products takes takes place in the following cycleC

5roductio

$($

$(D







"he activity of picking up of orders is dependent upon yesterday sales R safety stock which leads to the decision makers on deciding as to how many to pick for fullment of orders. #ver #very y nigh nightt a repo report rt is gene genera rate ted d in acco accord rdan ance ce to the the pick pickin ing g and and delivering activities.

'ecathlon follows Bac9?ard Lo5istics process. "his process involves moving goods goods from from their typical nal destination for the

purpose

of

capturing

value,

or

proper

disposal. Demanufacturing Demanufacturing and and refurbishing activit activities ies are are includ included ed in the denition of reverse logistics. "he reverse logistics process includes the management and the sale of surplus as well as returned e0uipment and machin machines es from from the hardwa hardware re leasin leasing g busine business. ss. Kormal Kormally, ly, logistics logistics deal deal with events that bring the product towards the customer. n the case of reverse logistics, the resource goes at least one step back in the supply chain.. +or instance, goods move from the customer to the distributor or to chain the manufacturer. When a manufacturer)s product normally moves through the supply chain network,, it is to reach network each the the dist distri ribu buto torr or cust custom omer er.. (ny (ny proc proces ess s or management after the sale of the product involves reverse logistics. f the prod produc uctt is defe defect ctiv ive, e, the the cust custom omer er woul would d retur eturn n the the prod produc uct. t. "he "he manufacturing rm would then have to organise shipping of the defective







n today) today)s s marke marketpl tplace ace,, many many retail retailers ers treat treat mercha merchandi ndise se retur returns ns as indi indivi vidu dual al,, disj disjoi oint nted ed tran transa sact ctio ions ns.. S"he S"he chal challe leng nge e for for reta retail ilers ers and and vendor vendors s is to proce process ss retur returns ns at a proc procien iency cy level level that that allows allows 0uick, 0uick, eFcient and costEe;ective collection and return of merchandise. $ustomer re0u re0uir irem emen ents ts faci facili lita tate te dema demand nd for for a high high stan standa dard rd of serv servic ice e that that includes accuracy and timeliness. ts the logistic company)s responsibility to shor shorte ten n the the link link from from retu return rn orig origin inat atio ion n to the the time time of rese resell ll.. By follow following ing retur returns ns manage managemen mentt best best practi practices ces,, retail retailers ers can achiev achieve e a retu return rns s proc proces ess s that that addr addres esse ses s both both the the oper operat atio iona nall and and cust custom omer er retention issues associated with merchandise returns.+urther, because of the connection between reverse logistics and customer retention, it has become a key component within 3ervice *ifecycle !anagement ?3*!@, a business strategy aimed at retaining customers by bundling even more coordination of a company)s services data together to achieve greater eFciency in its operations.

Deverse logistics is more than just returns management, it is Sactivities related to returns avoidance, gatekeeping, disposal and all other afterE market market supply supply chain issuesS.D issuesS.Detur eturns ns management managementTincr Tincreasing easingly ly being recogni








are customi






'ecathlon won government approval for 88P foreign direct investment ?+'@ in single brand retail in 489.'ecathlon has doubled the store count in ndia in the past = to 2 months. n !ay 48=, it had 9 stores. 3tores in newer markets, such as 1uwahati, were added this year, taking the store count to 4=. (nother do






6ttp&???co5ni@antco$Insi56ts!6itepapersRe7erse( Lo5istics(T6e(!a%(For?ard(Part()(o4(G(codex2pd4 6ttp&???i>srpor5researc6(paper(+-)-i>srp(p)*)+1pd4 6ttp&???scapp9articleIn7entor%JG+Mana5e$ent JG+andJG+ItsJG+E8ectsJG+onJG+0usto$er JG+Satis4actionpd4 6ttp&???t#$tudel4tnlKlead$inFaculteitTBMO7erdeF aculteitA4delin5enA4delin5In4ras aculteitA4delin5e nA4delin5In4rastructureS%st tructureS%ste$sandS e$sandSer er 7icesSectieIn4or$atieen0o$$unicatieTec6nolo5ie$ede ?er9ers>an7anden#er5ne?sdoc"7Hec9THESISFINALp d4 6ttp&???li7e$intco$0o$panies2-#N!27ic$s:1*rc El/Decat6lon(6i9es(s6are(cap El/Decat6lon(6i9 es(s6are(capital(as(part(o ital(as(part(o4(India(ex 4(India(expansion( pansion( pla6t$l 6ttp&articlesecono$icti$es 6ttp&articles econo$icti$esindiati$esco indiati$esco$G+),(+*( $G+),(+*( G2ne?s*+)GG)+(stores(east(india()++(stores

Decathlon

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