Table Ta ble of Contents
1.Retail in India...............................................................................................................................5 1.Company Profile...........................................................................................................................7 1.1. Aditya Birla Group...............................................................................................................7 2.Pantaloons Fashion and Retail Ltd............................................................................................... !.Fundamentals of "upply Chain #ana$ement.............................................................................1% !.1.
"upply Chain #ana$ement... #ana$ement.......... .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ...................... ................1% .1%
!.2.
&arehous &arehouse..... e............ .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. .................... ...................12 ......12
!.!.
In'entory In'entory #ana$ement... #ana$ement.......... .............. ............. ............. .............. .............. ............. ............. .............. ............. ............... .............................1! ....................1!
!.(.
)ranspor )ransportatio tation..... n............ .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. ..................... ...........................15 .............15
!.5.
Information Information Flo*....... Flo*.............. .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. .......................... ...........................1+ .......1+
!.+.
)e,hnolo )e,hnolo$y..... $y............ .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. ............. ............. ...................1+ ............1+
!.+.1.
Retail Retail Before Before -RP......... -RP................ .............. .............. ............. ............. .............. .............. ............. ............. .............. .................... ..........................1+ .............1+
!.+.2.
eed for for -RP...... -RP............ ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. ............. ............. .............. .............. ...........17 ....17
!.+.!.
)he "olution.... "olution.......... ............. .............. ............. ............. .............. .............. ............. ............. .............. .............. ............. ................ ............................17 ..................17
!.+.(.
Post Implementat Implementation... ion.......... .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ............... ................1 ........1
!.+.5.
Information Information "e,urity.... "e,urity........... ............. ............. .............. .............. ............. ............. .............. ............. ............. .............. .............. ............. .............. .........1/ .1/
!.+.+.
#aintenan,e #aintenan,e 0 ard*are... ard*are.......... ............. ............. .............. ............. ............. .............. .............. .................. ................................. .......................1/ .1/
!.+.7.
Business Business *ith I)......... I)................ .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ...................... ................1/ .1/
!.+..
Au$mentin$ Au$mentin$ the -RP "ystem...... "ystem............. .............. ............. ............. .............. ............. ............. .............. ................ ..........................2% .................2%
!.+./.
-RP "ystem Audit..... Audit............ .............. ............. ............. .............. .............. ............. ............. .............. ............. ............. ...................... ........................2% .........2%
!.+.1%. !.+.1%. !.7. !..
Challe Challen$e n$ess and Benefi Benefits. ts.... ...... ....... ....... ....... ....... ...... ....... ....... ...... ....... ....... ...... ....... ....... ....... ....... ....... ......... .......... .......... ......... ......... .........2% ....2%
Pro,ess Pro,ess In*ard In*ard Pro,ess Pro,ess in &ar &arehouse ehouse....... .............. ............. ............. .............. ............. ............. .............. ........................... ......................22 ..22 "to, )ransfe )ransferr 3rder 3rder 4")3...... 4")3............. .............. ............. ............. .............. .............. ............. ............. .............. ............................. ............................22 ......22
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")3 #o'ement.... #o'ement........... ............. ............. .............. ............. ............. .............. .............. ............. ............. .............. .............. ............. ............. ....................2! .............2!
!.1%. Pur,hase 3rder 4P.3........................................................................................................2! !.11.P.3. Format........................................................................................................................2( !.12. 6nloadin$ and ,ountin$ of ,artons...................................................................................2( !.1!.
&arehous &arehousee "tora$e "tora$e Pro,ess..... Pro,ess............ ............. ............. .............. ............. ............. .............. .............. ............. ............. ................... .................2+ .....2+
!.1(.
&arehous &arehousee 3ut*ard 3ut*ard Pro,ess..... Pro,ess........... ............. .............. ............. ............. .............. .............. ............. ............. ........................ ......................2+ .....2+
!.15. In*ard Pro,ess in "tores...................................................................................................2 (.Company Introdu,tion................................................................................................................!% (.1. Business #odel of "napdeal...............................................................................................!1 Ad'anta$es of "napdeal #odel.................................................................................................!2 isad'anta$es of "napdeal #odel.............................................................................................!2 5.&orin$ #odel of "napdeal.......................................................................................................!! 5.1. #aretpla,e #odel.............................................................................................................!! +."upply Chain #ana$ement at "napdeal.....................................................................................!5 +.1. )e,hnolo$y in "upply Chain...............................................................................................!+ +.2. &arehouse #ana$ement.....................................................................................................!+ +.!. Benefits to the sellers..........................................................................................................!7 +.(. "napdeal Plus 4"8...........................................................................................................!7 +.5. )he "8 Ad'anta$e9...........................................................................................................! +.+. Lo$isti,s..............................................................................................................................!/ +.7. ispat,h Pro,ess.................................................................................................................!/ +.. :uality Control...................................................................................................................(% +./. istri;ution "trate$y...........................................................................................................(% +.1%. eli'ery "er'i,e...............................................................................................................(1 +.11. +.11. 2|Pa$e
Last #ile eli'ery.... eli'ery.......... ............. .............. ............. ............. .............. .............. ............. ............. .............. .............. ............. ............. .............. ............(2 .....(2
!./.
")3 #o'ement.... #o'ement........... ............. ............. .............. ............. ............. .............. .............. ............. ............. .............. .............. ............. ............. ....................2! .............2!
!.1%. Pur,hase 3rder 4P.3........................................................................................................2! !.11.P.3. Format........................................................................................................................2( !.12. 6nloadin$ and ,ountin$ of ,artons...................................................................................2( !.1!.
&arehous &arehousee "tora$e "tora$e Pro,ess..... Pro,ess............ ............. ............. .............. ............. ............. .............. .............. ............. ............. ................... .................2+ .....2+
!.1(.
&arehous &arehousee 3ut*ard 3ut*ard Pro,ess..... Pro,ess........... ............. .............. ............. ............. .............. .............. ............. ............. ........................ ......................2+ .....2+
!.15. In*ard Pro,ess in "tores...................................................................................................2 (.Company Introdu,tion................................................................................................................!% (.1. Business #odel of "napdeal...............................................................................................!1 Ad'anta$es of "napdeal #odel.................................................................................................!2 isad'anta$es of "napdeal #odel.............................................................................................!2 5.&orin$ #odel of "napdeal.......................................................................................................!! 5.1. #aretpla,e #odel.............................................................................................................!! +."upply Chain #ana$ement at "napdeal.....................................................................................!5 +.1. )e,hnolo$y in "upply Chain...............................................................................................!+ +.2. &arehouse #ana$ement.....................................................................................................!+ +.!. Benefits to the sellers..........................................................................................................!7 +.(. "napdeal Plus 4"8...........................................................................................................!7 +.5. )he "8 Ad'anta$e9...........................................................................................................! +.+. Lo$isti,s..............................................................................................................................!/ +.7. ispat,h Pro,ess.................................................................................................................!/ +.. :uality Control...................................................................................................................(% +./. istri;ution "trate$y...........................................................................................................(% +.1%. eli'ery "er'i,e...............................................................................................................(1 +.11. +.11. 2|Pa$e
Last #ile eli'ery.... eli'ery.......... ............. .............. ............. ............. .............. .............. ............. ............. .............. .............. ............. ............. .............. ............(2 .....(2
+.12.
Ba, end.......... end................. ............. ............. .............. .............. ............. ............. .............. .............. ............. ............. .............. ............. ................. .....................(! ..........(!
+.1!.
Customer Customer "er'i,e..... "er'i,e............ .............. .............. ............. ............. .............. .............. ............. ............. .............. ......................... ...............................(! .............(!
7.Con,lusion..................................................................................................................................((
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List of Figures Fi$ure 19 3r$ani
1.Retail in India )he retail se,tor in India is hi$hly fra$mented and or$ani
earnin$ it the epithet of a ?nation of shopeepers@ #ore than % of these 12 million outlets are run ;y small family ;usinesses *hi,h use only household la;our. )raditionally> )raditionally> small small store 4irana retailin$ has ;een 4|Pa$e
one of the easiest *ays to $enerate selfemployment> as it reuires limited in'estment in land> ,apital and la;our. Conseuently> India has one of the hi$hest retail densities in the *orld at + 412 million retail shops for a;out 2%/ million households. IndiaDs peers> su,h as China and Bra too 1%15 years to raise the share of their or$ani to 2% and ! respe,ti'ely. India too is mo'in$ to*ards $ro*th and maturity in the retail se,tor at a fast pa,e.
Comparati'e Penetration of 3r$ani
Figure 1: Organized vs Traditional
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Figure 2: Organized Retail Market Size
In the ,urrent s,enario ,lothin$ and a,,essories a,,ounts for !/ of the total or$ani
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1.Company Profile 1.1. Aditya Birla Grou
A 6" E(% ;illion ,orporation> the Aditya Birla Group is in the Lea$ue of Fortune 5%%. It is an,hored ;y an etraordinary for,e of o'er 1!+>%%% employees ;elon$in$ to (2 different nationalities. )he Group has ;een raned um;er ( in the $lo;al )op Companies for Leaders sur'ey and raned um;er 1 in Asia Pa,ifi, for 2%11. )op Companies for Leaders is the most ,omprehensi'e study of or$anisational leadership in the *orld ,ondu,ted ;y Aon e*itt> Fortune #a$a and RBL 4a strate$i, R and Leadership Ad'isory firm. )he Group has topped the ielsens Corporate Ima$e #onitor 2%121! and emer$ed as the um;er 1 ,orporate> the Best in Class 5% per ,ent of the Aditya Birla Groups re'enues flo* from its o'erseas operations. )he Group operates in !+ ,ountries H Australia> Austria> Ban$ladesh> Bra Canada> China> -$ypt> Fran,e> Germany> un$ary> India> Indonesia> Italy> I'ory Coast> apan> Jorea> Laos> Luem;our$> #alaysia> #yanmar> Philippines> Poland> Russia> "in$apore> "outh Afri,a> "pain> "ri Lana> "*eden> "*it )an )hailand> )urey> 6A-> 6J> 6"A> and =ietnam. )he Aditya Birla Group is an Indian multinational ,on$lomerate named after Aditya =iram Birla> headuartered in the Aditya Birla Centre in &orli> #um;ai> India. )he Aditya Birla Group is the *orlds lar$est produ,er of =is,ose "taple Fi;er industry. It operates from India> Laos> )hailand> #alaysia and China. It o*ns the Birla Cellulose ;rand. Apart from 'is,ose staple fi;er> the $roup also o*ns a,ryli, fi;er ;usinesses in -$ypt and )hailand> 'is,ose filament yarn ;usinesses and spinnin$ mills in India and "outh -ast Asia. )he $roup has pulp and plantation interests in Canada and Laos. Its t*o ,ompanies i.e. Aditya Birla u'o Ltd. and Grasim Bhi*ani )etiles Ltd. *hi,h is a su;sidiary of Grasim Industries are in tetile ;usiness.
2.Pantaloons Fashion and Retail Ltd.
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Pantaloons Fashion 0 Retail Limited is an Indian premium ,lothin$ retail ,hain. )he first Pantaloons store *as laun,hed in Gariahat> Jolata in 1//7. As of o'em;er 2%1!> there are 7+ Pantaloons stores in (( ,ities. Pantaloons *as pre'iously ,ontrolled ;y the Future Group> ;ut has no* ;een taen o'er ;y Aditya Birla u'o Limited 4ABL. "potli$htin$ todays ;uoyant youth> Pantaloons Fashion Retail Ltd.> Indias premium lifestyle apparel ,ompany offers ,hi, and trendy fashion to meet their e'er,han$in$ needs. &ith inno'ati'e desi$ns> ,on,epts and produ,ts> the ,ompany ;rin$s the latest trends in fashion and ,lothin$ styles to the apparel maret. Pantaloons refle,t the ideolo$y of al*ays eepin$ ali'e the ne*ness fa,tor throu$h fashion apparel and a,,essories that are 'isually appealin$ and fashiona;ly up;eat. )he first Pantaloons store *as laun,hed amidst mu,h fanfare in Gariahat> Jolata in 1//7. 3'er the years> the ;rand has under$one se'eral transitions and rein'ented itself to ;rin$ forth ,ompellin$ trends and styles ,aterin$ to the e'ol'in$ fashion hu;. "in,e its in,eption> Pantaloons pro$ressed from retailin$ Kust a mi of ;rands to its 'ery o*n popular pri'ate la;els as *ell> desi$ned ;y the inhouse esi$n "tudio. &ith a sharp fo,us on ;rin$in$ the latest in fashion> the esi$n "tudio ,om;ines its pro*ess in desi$n and aestheti,s to present styles that eep the ,onsumer fashiona;ly dressed ea,h season. Initially positioned as a store ,aterin$ to the fashion needs of the entire family> Pantaloons has no* transitioned to a fashion and lifestyle ;rand *ith an emphasis on youth and a fo,us on desi$ns that are inherently in syn, *ith ,urrent fashion trends. )his ,ompellin$ ,om;ination has helped Pantaloons retain its pla,e on the style radar of e'ery ,onsumers *ardro;e. Pantaloons stores ha'e an a;undan,e of ,hoi,es a,ross ,ate$ories that ran$e from *estern to Indian *ear> formal to party *ear and a,ti'e *ear for men> *omen and ids. )o further add to the ,ustomers innumera;le ,hoi,es that refle,t style> attitude> and ,omfort> Pantaloons has etended its hori foot*ear> hand;a$s> *at,hes> sun$lasses and mu,h more. &ith a ,hain of 1 fashion stores a,ross (% ,ities and to*ns> Pantaloons is ,onstantly etendin$ its footprints into the rest of modern India. Pantaloons *hi,h *as pre'iously ,ontrolled ;y the Future Group has no* ;een taen o'er ;y Aditya Birla u'o Limited ABLM. ABL is a part of the presti$ious Aditya Birla Group> a
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E(% ;illion Indian multinational> operatin$ in !+ ,ountries a,ross the $lo;e *ith o'er 1!+>%%% employees. )he ,ompany offers an in,redi;le and ,omplete onestop shoppin$ eperien,e to its ;uyers throu$h its 'ast ,olle,tion of more than 1%% presti$ious ;rands for the dis,ernin$ fashionista. )he 1 aestheti,ally desi$ned stores spread a,ross the ,ountry display a ran$e of ,lassy and trendy mer,handise that truly li'es up to PantaloonsD maim of Nfresh fashionD. A typi,al Pantaloons store is spread a,ross a spra*lin$ retail spa,e of a;out 2>%%% s. ft.> ,omprisin$ a ;rand portfolio that runs a,ross a *ide $amut of styles that spell ,lass. )he ,olle,tion in,ludes readyto*ear *estern and ethni, apparel for men> *omen and ids> ,omplemented ;y an ehausti'e ran$e of a,,essories. )he *omenDs se,tion houses the pri'ate la;els O Bare enim> Bare Leisure> Ri$> Anna;elle> oney> and AKile O in *estern *ear> as *ell as the ,hoi,est ethni, *ear from Ran$#an,h> )rishaa and Ariti. Popular ;rands lie Lee Cooper> Bi;a and & are also a'aila;le. )he pri'ate la;els for men in *estern *ear in,lude Lom;ard> Ri$> Bare enim> Bare Leisure and # "port apart from trendy ;rands lie 6r;ana> ",ullers> ohn #iller> and Indi$o ation. Ariti pro'ides a *ide sele,tion of ethni, *ear.
!.Fundamentals of "upply Chain #ana$ement 3.1.
#$%%L& C'A() *A)AG+*+)T
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"upply Chain #ana$ement 4"C# is essentially inte$ratin$ suppliers to the end ,onsumers and emphasis the need for ,olla;oration to optimi shorter produ,t life ,y,les ,auseDs $reater flu,tuations in demand and ,alls for hi$h responsi'eness in supply ,hain and due to *hi,h need of shorter lead time ,ontinues. In retail transa,tions must ;e smooth> timely and a,,urate. &hen one is dealin$ *ith a ,omple fun,tion su,h as retail it is 'ery essential that *e ha'e a stron$ supply ,hain for ;etter responsi'eness and ,ost effe,ti'eness. An effe,ti'e supply ,hain mana$ement system ,an pro'ide a !+%de$ree feed;a, to the retailer as *ell as to the manufa,turer a;out the popularity and ,omplaints of any parti,ular produ,t. Pro'ide 'alua;le insi$hts on in'entory and $uidelines on mer,handise allo,ation. It also in,reases 'isi;ility of sto, sales and ,onsumer demand throu$hout the supply ,hain. Fa,ilitates ,olla;oration and ,ommuni,ation for impro'in$ relationship *ith supplier. As Pantaloon Retail ;elie'es in 'alue retailin$ so it is 'ery essential that our supply ,hain is 'ery stron$ ;e,ause *e only mae money *hen *e redu,ed our ,ost and supply ,hain is the only area for maimum ,ost redu,tion either it is pur,hase in ;ul or it is ;etter lo$isti,s *e only *in if *e are a;le to de,rease our ,ost and response time. An effi,ient supply ,hain is *orin$ somethin$ lie that it is $i'en in the a;o'e fi$ure9
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Figure 3: Supply Chain of antaloons
)here are 5 essential areas for the su,,ess of any retailer in the supply ,hain and out of these ! are lo$isti,al fun,tions. )hese are9 &arehouse 4Fa,ility In'entory #ana$ement )ransportation Information Flo* )e,hnolo$y )his is the Pro,ess of Pantaloon Retail India Ltd
Figure !: ro"ess of Supply Chain
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3.2.
are/ouse
&arehouse is the lo,ation to or from *hi,h the in'entory is transported. &arehouses are the ey dri'er of supply ,hain performan,e in terms of responsi'eness and effi,ien,y. Before de,idin$ the lo,ation of &arehouses *e must ,onsider the follo*in$ points9 Lo,ation of our stores Rent of the lo,ation Format of our retailin$ o* a dayDs *arehouse is treated as s*it,hin$ fa,ilities rather than stora$e pla,e and ,ompanies try to mo'e sto, from the *arehouse as soon as possi;le to redu,e the in'entory handlin$ ,ost> for hi$her in'entory turno'er and for shorter ,y,le time It is a maKor ,ost ,enter> many ,ustomer pro;lems are the dire,t result of improper *arehousin$ mana$ement.
#aKor de,ision of *arehouse are as follo*s9 Fa,ilities in the *arehouse> &arehouse layout> esi$n of ;uildin$> 3*nership of the *arehouse> Conne,ti'ity. &arehouseDs performan,e is Kud$ed ;y ,ustomerDs satisfa,tion and ;y lo*er ,ost of operation. •
are/ousing Fun0tion #aterial "tora$e Fun,tion9 #aterial andlin$ Fun,tion>
•
Information andlin$ Fun,tion. *aterial storage is reuired to a00oodate t/e folloing fun0tions oldin$> Consolidation> Brea Bul> Pa,in$> #iin$. #aterial handlin$ fun,tion Loadin$ 0 unloadin$> #aterial #o'ement> 3rder filin$.
Information handlin$ fun,tion • •
Goods in*ard> Inspe,tion 0 auditin$> Goods out*ard> -,ess "to,> &arehouse -penses> )ransit dama$e 0 Breaa$e. Pantaloons try to lo,ate its *arehouses 'ery near to the stores as *e see there are many *arehouses in the CR area lie to ,o'er elhi stores there is a *arehouse in &a for oida and Gha
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important that ,ompany fo,us on e,onomies of s,ale and pur,hase in ;ul and this •
reuires more *arehouses. )he fun,tion of pro'idin$ *arehouses is outsour,ed to Indo Arya *hi,h is one of the ;est ,ompanies in India in the field of lo$isti,s. In some pla,es lie in ,ase of "RIL *arehouse in adri Pantaloon outsour,e the *hole lo$isti,s fun,tion to Indo Arya. adri *arehouse of the ,ompany is pro'ided ;y Indo Arya and it is a C&C *arehouse. Conne,ti'ity is 'ery $ood from this *arehouse ;e,ause it is lo,ated on the G) road and it taes hardly 1 hour in transportin$ sto, to the oida and Gha%%% s. ft. ea,h out of *hi,h 1 se,tion handlin$ the in'entory of "RIL format and hold furniture and home impro'ement mer,handise> 2nd se,tion ,arry $eneral mer,handise and sanitary items and !rd one is for pantaloons. In ,ase of &a
3.3.
(nentory *anageent
In'entory eists in the "upply Chain Be,ause of a #ismat,h ;et*een "upply and emand. In'entory is the maKor sour,e of ,ost in the "upply Chain. )he fi$ure $i'en ;elo* sho*s ho* the effe,ti'e in'entory mana$ement is *or. )his fi$ure sho*s that there must ;e some in'entory le'el *e must mana$e for effi,iently fulfill the demand of ,ustomers and *e must out the in'entory in time so that *e are a;le to send the sto, in stores in time and the dama$e sto, is also out from the & so that *e maintain a $ood in'entory le'el. Pantaloons is the first ,ompany in the or$ani
Jey points of In'entory #ana$ement "ystem at Pantaloons •
Consolidation of *arehouse spa,e " 4&arehouse #ana$ement "ystem #e,hani
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•
-nsures timely produ,t a'aila;ility of all maKor fast mo'in$ items at stores. Lo*er o;soles,en,e and lo*er mardo*n. Fa,ilitate "to, A$in$ analysis. "i$nifi,antly redu,ed N)imeto#aretD.
Impro'ed 3rder Fulfillment and A,,ura,y
• • •
)he order fulfillment pro,ess refers to all the steps the ,ompany taes from the moment they re,ei'e an order until the items land in ,ustomersD hands. For this> Pantaloons fo,us upon9 • • •
Classifi,ation of in'entory Inte$rate systems for more 'isi;ility into all aspe,ts of order fulfillment Automati, pro,esses *ith the help of te,hnolo$ies and latest soft*areDs.
•
-,onomies of s,ale "hared *arehouse ,ape and o'erheads Redu,ed in'entory holdin$ ,osts 3ptimi
Rationali
• •
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"J6 Rationali
Figure #: $usiness %ertival of antaloons
3.4.
Transortation
)ransportation is defined as the physi,al flo* of material and finished $oods from point of ori$in to point of use to meet ,ustomerDs need at a profit. It is essentially a plannin$ pro,ess and an information a,ti'ity so an inte$rati'e pro,ess that optimi *hether the produ,t is tan$i;le or intan$i;le. -ffe,ti'e 0 effi,ient Physi,al mo'ement of the tan$i;le produ,t *ill spea of intan$i;le ser'i,es asso,iated *ith the produ,t and the or$ani the deli'ery of tan$i;les at the ri$ht pla,e 0 ri$ht time *ill spea a;out its uality. India
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spends nearly 12 of its GP on lo$isti,s. India spent nearly E 5% ;illion to mo'e material from one use to another. Any $ood transport ser'i,e is that *hi,h pro'ide9 Relia;le and ,onsistent deli'ery performan,e Frei$ht e,onomy #inimum produ,t dama$e Pantaloon outsour,ed its transportation ser'i,es to the third party *hi,h is Indo Arya. "o in this ,ase all dama$es all responsi;ility is of transportation ser'i,e. Pantaloon must pro'ide the reuired 'ehi,le on time *hen *arehouse reuires it. )his is the pro;lem *hi,h *arehouse fa,e most of the time. 3.5.
(nforation Flo
Information ser'es as the ,onne,tion ;et*een 'arious sta$es of a supply ,hain> allo*in$ them to ,oordinate and maimi uantity> 'alue e.$. Lead time> rate of ,onsumption> deli'ery s,hedule 0 pri,e of the material> )ransportation time 0 ,ost et,. Flo* of information is 'ery essential to no* the ea,t reuirement of stores> to no* ,onsumerDs preferen,es> to no* the in'entory le'el in store and in *arehouses. "o you to ha'e a loo for this pro,ess a $ood and ualified team *or at Pantaloons ;e,ause is the most important sta$e of supply ,hain mana$ement of supply ,hain. 3.6.
Te0/nology
3.6.1. etail Before +%
urin$ the early days of Pantaloon> most of the solutions *ere de'eloped inhouse. Retail -nterprise #ana$ement 4R-# a distri;uted P3" ;ased solution de'eloped inhouse> *as 16 | P a $ e
deployed at e'ery store> *hi,h mana$ed in'entory promotions> sales and ,ustomer profiles a,ross all the outlets. &ith the epansion in ;usiness> the soft*are *as modified> enhan,ed> and stret,hed to a,,ommodate the ,han$in$ retail dynami,s. Pantaloon had also piloted the use of RFI te,hnolo$y and their eperiment had ;een su,,essful. 3.6.2. )eed for +%
Pantaloon *ished to impro'e their store operations and ha'e a ro;ust system to support their $ro*th. An -RP system *ould help meet their reuirements lie9 •
Impro'ed finan,ial tra,in$ and reportin$ for all retail lo,ations and ;usiness le'els
•
eft handlin$ of ,ompleities in retail ;usiness reuirements
•
-nhan,ed de,ision main$ ;y pro'idin$ more $ranular> realtime information
•
"upport for the finan,ial a,,ountin$ needs of a rapidly epandin$ retail ;usiness
•
-peditin$ the re,on,iliation and ,losin$ pro,esses 3.6.3. T/e #olution
After a ,omprehensi'e e'aluation of different options and soft*are ,ompanies> the mana$ement at Pantaloon de,ided to $o in for "APDs retail solution. )his *as on a,,ount of the fa,t that "AP had a solution spe,ifi,ally dire,ted at the retail se,tor> *hi,h met mu,h of PantaloonDs reuirements. "AP ;ein$ the maret leader in the -RP 'endor spa,e> it *as ;elie'ed that "AP *as the ;est possi;le solution pro'ider. "ome of the ualities of "AP retail solutions are that it supports produ,t de'elopment> *hi,h in,ludes ideation> trend analysis> and ,olla;oration *ith partners in the supply ,hainQ sour,in$ and pro,urement> *hi,h in'ol'es *orin$ *ith manufa,turers to fulfil orders a,,ordin$ to strate$i, mer,handisin$ plans and optimise ,ost> uality> and speedH'aria;les that must ;e *ei$hted differently as ;usiness needs> ;uyin$ plans> and maret demand patterns ,han$eQ mana$in$ the supply ,hain> *hi,h in'ol'es handlin$ the lo$isti,s of mo'in$ finished $oods from the sour,e into stores and o'erseein$ $lo;al trade and pro,urement reuirementsQ sellin$ $oods a,ross a 'ariety of ,hannels to ,ustomers> *hi,h reuires maretin$ and ;rand mana$ementQ mana$in$ mardo*ns and ,apturin$ ,ustomer rea,tions> analysin$ data> and usin$ it to optimise the net phase of the desi$n pro,ess. 1! | P a $ e
A pi,torial depi,tion of "APDs retail solution is sho*n in fi$ure ; elo*.
Figure &: 'epi"tion of S(
Figure ): S( retail setup
3.6.4. %ost (leentation
In the period follo*in$ the implementation> steps *ere taen to ensure the smooth fun,tionin$ of the ne*ly deployed system. In the 5 years after the ,ompletion of the first phase of implementation> se'eral additional modules from "AP *ere implemented to eep the system
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future dated. )he ,han$es> the ,hallen$es and the ;enefits eperien,ed are mentioned in the net fe* se,tions. 3.6.5. (nforation #e0urity
It *as ne,essary to ensure that data or information *as a'aila;le to the ri$ht persons at the ri$ht time. In order to ensure that information se,urity is ,ontrolled *ithin ,ompany premises> the ,ompany edu,ated its manpo*er. &ith this in mind> they ti$htened their internal pro,esses> *hile R pra,ti,es *ere ;rou$ht in line *ith the ,ompanyDs o'erall poli,ies. "in,e R *as playin$ a ,ru,ial role in ,reatin$ a*areness amon$ employees> it ;e,ame a daytoday pra,ti,e for the ,ompany employees. For any eternal threat> the ,ompany put up stron$ fire*alls in ;oth hard*are and soft*are forms. )his apart> the ,ompany tried to ,om;ine ;est of pre'ailin$ standards in the industry> ran$in$ from perimeter se,urity to destop le'el se,urity. )ain$ into a,,ount the $eo$raphi, spread and the nature of ;usiness the ,ompany se$re$ated the internal setup from the out*ard fa,in$ infrastru,ture and implemented the ;est in ,lass produ,ts> ser'i,es and solutions 4Ba;uraKan> 2%%7. 3.6.6. *aintenan0e 7 'ardare
"AP Retail is ;ein$ used ;y around 1>2%% employees a,ross the or$ani Pantaloon has an inhouse team and it has outsour,ed the Ad'an,ed Business Appli,ation Pro$rammin$ 4ABAP resour,es. )his team of ABAPers taes up any soft*are ,han$es reuired. )hey ha'e also set up a "AP Competen,y Centre. )he system runs on a P "uperdome ser'er on P 6I 11i and the data;ase is from 3ra,le 4"hah> 2%%7. 3.6.!. Business it/ (T
In order to spe,ifi,ally ,ater to emer$in$ and $ro*in$ ;usiness needs> the I) team has a ;usiness relationship ,ell *hi,h interfa,es *ith the 'arious ;usiness teams to understand their needs. )his ena;les ,han$es reuired to ;e ,aptured at sour,e and in,orporated as needed. I) has $ot 1, | P a $ e
strate$i, importan,e *ithin the or$ani Pantaloon made strate$i, use of I) 4Ba;uraKan> 2%%7. 3.6.". Augenting t/e +% #yste
By 2%%7> "AP Retail *as implemented a,ross all ;usiness fun,tions *hi,h in,luded finan,e> ,ate$ory mana$ement> "C# and store ;a, offi,e and ,o'ered all stores a,ross India. =ery soon> R and payroll *ere also ,o'ered. A data *arehouse and Business Intelli$en,e 4BI solution from "AP *ere up net. It *as also planned to implement a CR# system to ;etter understand ,ustomer reuirements. In 2%12> Pantaloon implemented a *e;;ased interfa,e usin$ IB# Co$nos )#1 to help *ith finan,ial plannin$> fore,astin$> reportin$ and analysis. )his *as inte$rated *ith "AP Retail 4Jumar> 2%12. 3.6.,. +% #yste Audit
In order to ensure that the system is ,urrent> it *as ,ontinuously re'ie*ed. In 2%11> -rnst and Soun$ *ere ,alled in to undertae an audit to help stren$then the ,ontrols in the -RP system. Based on this report> ,han$es and impro'ements *ere made to the system to help Pantaloon to remain ,ompetiti'e 4Annual Report> 2%12. 3.6.1-. C/allenges and Benefits
)he ey ,hallen$es in this proKe,t *ere not in the implementation ;ut in mana$in$ the per,eptions of people durin$ the period of si months *hen the implementation *as under*ay. People *ere not ,on'in,ed a;out the need for -RP and did not see *hy it *as ne,essary. #i$ratin$ unor$ani AutoReplenishment and Pur,hase 3rders. )hey hoped to use these systems to optimise their in'entory and ,ut it ;y a;out t*o to four *ees. )he "AP -RP system is ,ompletely inte$rated *ith point of sales ma,hines 4P3". Further> all the sales data $enerated in a day are uploaded into "AP o'erni$ht> automati,ally updatin$ the in'entory mo'ement and finan,ial ,han$es.
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In the lon$ run> they *ere a;le to eperien,e impro'ements in se'eral areas. "ome of the ;enefits *ere9 •
Finan,ial and "trate$i, Benefit
Greater ;usiness insi$hts throu$h more a,,urate and timely finan,ial information
Lo*er ,osts 'ia ,on'er$en,e of finan,ial a,,ountin$ and ,ontrollin$
-nhan,ed data uality
-asier ,omplian,e *ith re$ulatory reuirements 'ia the "AP parallel a,,ountin$ feature
•
3perational Benefits
Realtime> ,ontinuous re,on,iliation of ,ost elements and epense a,,ounts> freein$ up personnel for more 'alueadded a,ti'ities
A;ility to ,lose ;oos 15 to 2% faster
5 to 1% redu,tion in a,,ounts re,ei'a;les In 2%11> Pantaloon Retail also *on the NBest run Business in #o;ility AdoptionD from "AP. )his reaffirmed that they had made $ood use of I) to mae information a'aila;le anytime> any*here on any de'i,e 4"AP> 2%11. )he follo*in$ ,hartT model sho*s 'arious te,hnolo$y initiati'es taen ;y Pantaloons for ;etter mana$ement of supply ,hain and in'entory9
Figure *: Supply "hain and +nventory
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3.!.
%ro0ess (nard %ro0ess in are/ouse
In *arehouse *hen sto, ,omes from the 'endor site or from ,entral *arehouse then the follo*in$ pro,edure is used for in*ard of sto, in *arehouse9 1. o,uments ,he,9 )his is first and one of the most important steps of the in *ardin$ pro,edure ;e,ause if any *arehouse in*ards the sto, in *arehouse *ithout ,he, the proper do,uments then it ,reates a ;i$ trou;le for the or$ani any other & or from any store then follo*in$ do,uments are ,he,ed ;y the se,urity staff9 1.1 "to, )ransfer ote 4") staff ,he,s *hether this ") ;elon$ to this & or to any other. 1.2 )ransporter *ay;ill *hi,h is different in different in different states and some*here it is also not reuire this. !..
"to, )ransfer 3rder 4")3
"to, )ransfer 3rder 4")3T"to, )ransfer ote 4") are the do,ument *hi,h is used for transfer of sto, & and stores. At the store le'el ")3 is raise ;y #Ds of their respe,ti'e department. ")3 is also reuired for the mo'ement of sto, from one *arehouse to another or from one store to another. &e ,an say that all the mo'ement of sto, *ithin the or$ani
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Figure ,: Move-ent of sto"k
3.,.
#T8 *oeent
If sto, ,omes from 'endorDs site> then se,urity ,he,s the follo*in$ do,uments9 1.1 Pur,hase 3rder 4P3 *hether this P3 is for this & or not and se,urity also ,he, the epiry date of P3. 1.2 In'oi,e 4Bill *hi,h spe,ifies *hat uantity 'endor sends and *hat pri,e 'endor ,har$e from ,ompany. 1.! eli'ery ,hallan *hi,h is the proof of payment of sales ta. 3.1-. %ur0/ase 8rder 9%.8.:
Pur,hase 3rder4P3 *hi,h is only raise for the 'endorsTsuppliers and this P3 is only raise ;y the Front -nd Cate$ory )eam from the Uonal offi,e or from ead offi,e and it is also raise ;y stores and in stores it is raised ;y epartment #ana$ers. P3 from the store le'el is only raise for the lo,al 'endors and 'endors deli'er sto, dire,tly to the stores. &hen #Ds of the stores raise P3 then most of the time it first $oes to ,ate$ory team and then ,ate$ory team pass it to the 'endors. In ,ase *hen ,ate$ory team raise the P3 then it ,onsidered the reuirement of the stores *hi,h is sent ;y the #Ds to the ,ate$ory team and then ,ate$ory team mae P3 for 'endors and de,ide *hether sto, $oes to & or dire,tly to the stores.
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3.11.%.8. F8*AT
Figure 1.: /O/ For-at
3.12. $nloading and 0ounting of 0artons
After ,he,in$ the do,uments sto, is unloaded from the 'ehi,le under inspe,tion of responsi;le person and se,urity staff. "e,urities ,ounts the ,artons and see that ,artons are pa,ed properly if there is any ,arton *hi,h is open or not in proper ,ondition the se,urity put remar on the do,uments. a -ntry in se,urity in*ard re$ister9
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; After proper unloadin$ se,urity staff enters the details of in *ardin$ in se,urity in*ard re$ister. )he format of in*ard re$ister of Pantaloons is $i'en ;elo*9
Figure 11: For-at of +n0ard Register
,
"to, Count and Che,9 After the entry of sto, in the re$ister this is the time to ,ount the sto, manually or ;y the help of "AP and employee also ,he, for any dama$e in the sto, that the & $et and if they find any differen,e ;et*een the uantity mentioned in in'oi,e and the a,tual uantity they $et or if there is any dama$e produ,t> any part missin$ or any ;ar ,ode pro;lem then they *rite that information on the in'oi,e of the
'endor and pass it to the ,on,erned person of the *arehouse. d -ntry into "AP9 o* after ,ountin$ the sto, if ,ountin$ is done manually then the sto, is entered in the "AP ;y s,annin$ ea,h and e'ery produ,t for the ;etter 'isi;ility of sto, a,ross the supply ,hain. If there is any pro;lem in ;ar ,ode lie it is not read ;y reader ;e,ause of any s,rat,h on ;ar ,ode or ;ar ,ode is not on the mer,handise then the person try to find out its arti,le ,ode ;y mat,hin$ that produ,t *ith other produ,t of same ,hara,teristi,s lie a shirt of same ,olor> same si
3.13.
are/ouse #torage %ro0ess
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"tora$e is also the most important part of the *arehouse ;e,ause *e ,annot store all the sto, in store due 'ery hi$h property rents and e'ery ". ft. of spa,e is 'ery ,ostly in the re$ions *here stores are lo,ated and proper stora$e is also essential in & to a'oid dama$es and for fast pro,essin$. In stora$e pro,ess *hen sto, is enterin$ in the "AP then it is mo'ed to their respe,ti'e se,tion *hi,h are arran$ed a,,ordin$ to their ,ate$ory or #C ,ode. -'ery item put in & a,,ordin$ to its type and the *ay it mo'es out from the & lie ,lothes are put in ;ins and ra,s for fast mo'ement of sto, as they are easy for pi, *hen they are put in ra,s. For Bi$ items lie ,onsumer dura;le and furniture there is no reuirement of ra,s ;e,ause they are put on the floors and if they are put in ra,s them it is also hard to put them in ra,s. At *hat lo,ation any item is pla,ed is also de,ided ;e,ause it is not $ood to mo'e $lass items for a lar$e distan,e so they put near to out $ate. 3.14.
are/ouse 8utard %ro0ess
1. ") is dra*n from "AP9 )he mo'ement of sto, from the & to the different stores or to other & is no*n as sto, transfer for this purpose storeT& raise a "to, )ransfer ote4") for & a,,ordin$ to the reuirement of storeT& and & person taes this ") from "AP. 2. Che, a'aila;ility of sto, throu$h "AP9 Before tae the printout of ") that person ,he, that is there any other store *hi,h send the reuirement of the same produ,t if so then & employee di'ide the sto, ;et*een the stores a,,ordin$ to their reuirement so that no one $et sto, out for that material. !. Pi, list is made a,,ordin$ to the ")9 After ,he,in$ the a'aila;ility of material & person $enerate pi, lists a,,ordin$ to the ,ate$ory or a,,ordin$ to #C ,ode of the ,ate$ory lie there is separate ,ode for menDs Keans and separate #C ,ode for ladiesD Keans and mer,handise is put in the & a,,ordin$ to their #C ,ode so that it is for the employee to pi, the mer,handise.
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Figure 12: i"k list of antaloons
(. -mployees pi, items a,,ordin$ to the pi, list9 o* the pi, list is $i'en to the employee *hi,h are responsi;le for pi, the mer,handise and they tae that pi, list and as they no* *here this parti,ular produ,t is pla,ed so they $o to that se,tion and pi, the items a,,ordin$ to the arti,le ,ode *hi,h is *rite on the ;ar ,ode of the produ,t and put it on the ,on'eyor or in a ;lan ,arton and tae it to the se,tion from *hi,h out*ard is done. 5. Items are s,an throu$h the "AP9 &hen pi, sto, rea,h to the out*ard system the person at the out*ard system enter ") o.Teli'ery o. and andlin$ unit *hi,h is L2%%% for out*ard in the "AP and then s,an ea,h item one ;y one and if any item *hi,h is not ;elon$s to that ") then a red li$ht is ;lin in the ;ottom of "AP *indo* and the person put that item a*ay and tells the persons those pi, the item that this is not the ri$ht produ,t and the employee a$ain sear,h for ri$ht produ,t and *hen all items $et s,anned then they pa, the ,artons for dispat,hin$ and put the ri$ht ta$ for the store and ") no. on the ,artons. +. Pre eli'ery In'esti$ation 4PI of sto,9 Before dispat,hin$ the sto, to stores for some produ,t an in'esti$ation is reuired to ,onfirm that the dispat,h item it in $ood uality and it is not dama$ed this pro,ess is $enerally for ;i$ produ,t lie furniture items> ele,troni,s items et,. In this pro,ess employee ,he, for any defe,t in the produ,t and if there is any su,h pro;lem they found in the produ,t then & does not dispat,h it to the store. 7. "to, is pa,ed9 &hen sto, is put in the ,artons then it is the time to pa, these and pa,a$in$ staff pa, the ,artons *ith the sheet of polythene so that ,artons are not opened easily and sometimes there are some dama$ed ,artons also pre'ented from openin$ durin$ transportation ;y this pro,ess.
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. o,umentation9 &hen sto, is pa,ed then the & person does the proper do,umentation for hassle free mo'ement of $oods. -mployee put the ") *ith $ate pass *hi,h is 'ery essential for out*ard mo'ement of sto, *ithout *hi,h se,urity does not allo* to pass the sto, outside the & and a do,ument is also atta,hed for sales ta purpose *hi,h is different for different states lie if sto, is mo'ed inside the 6P them an 3C stamp is 'ery essential *ith the do,ument or if sto, is ,omes in 6P from outside then form !1 is reuired *ithout these do,u ments mo'ement of sto, is ille$al. /. 3ut*ard -ntry Re$ister9 After seein$ the reuired do,uments se,urity person mae entry into his re$ister for the out*ard sto,. )he format of out*ard re$ister of Pantaloons is lie this9
Figure 13: For-at of Out0ard Register
1%. ispat,h of sto,9 For dispat,hin$ the material to the store the employee of the & tell the transporter a;out the reuirement of the 'ehi,le in ad'an,e so that the transporter arran$ed the 'ehi,le on time for dispat,hin$ the material. 3.15. (nard %ro0ess in #tores
1. o,uments ,he,9 )his pro,ess is same as that of & se,urity staff ,he,s ")> eli'ery Challan> and Gate Pass *hen sto, ,omes from & and P3> eli'ery Challan and In'oi,e *hen sto,s ,omes from supplier. 2. 6nloadin$ and ,ountin$ of ,artons9 )his step is also same as that of & !. "to, ,ount and ,he,9 )his step is some*hat different from & ;e,ause in ,ase of store the pro,ess of ,ountin$ and ,he,in$ of sto, from any dama$e is 'ery fast in ,omparison to &. In store the shorta$e and dama$es that are found in *rite on the do,uments *hi,h are send to 2" | P a $ e
'endor at the same time after ,ountin$ and dama$e material is try to dispat,h from store as soon as possi;le ;e,ause of spa,e pro;lem. (. -ntry in se,urity in*ard re$ister9 After ,ountin$ se,urity enter the in*ard sto, detail in se,urity in*ard re$ister for future reuirement. )he format of se,urity in*ard re$ister is $i'en ;elo*9
Figure 1!: For-at of se"urity +n0ard Register
5. "to, mo'e to store *arehouse9 After ,ountin$ and entry in the in*ard re$ister sto, is mo'ed to the *arehouse of the store +. -ntry into "AP9 &hen sto, mo'ed to the *arehouse then it is the time to enter the sto, in the "AP so that it is mo'ed to shel'es ;e,ause *ithout enterin$ the sto, in "AP it is not re,o$ni one to 'endor. )he o'erall pro,ess of main$ dis,repan,y note is same as that of &. . GR is made9 #ain$ GR is also same as that of & and the do,uments are send to
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(.Company Introdu,tion "napdeal> founded ;y Junal Bahl and Rohit Bansal> is an online shoppin$ maretpla,e started in Fe;ruary 2%1% as a daily deals platform inspired ;y $roupon.,om ;ut epanded in "eptem;er 2%11 to ;e,ome an online maretpla,e. It started as a mem;er only *e;site *hi,h $radually ept on $ro*in$ to ;e,ome the lar$est online maretpla,e in India offerin$ an assortment of !% million produ,ts a,ross di'erse ,ate$ories from o'er 275>%%% sellers ,aterin$ to a user ;ase of 25 million mem;ers in +%%% to*ns and ,ities a,ross the ,ountry. "napdeal is no* the se,ondlar$est etailin$ ,ompany after Flipart in India.
Figure 1#: Fan at Moile Thrust of Snapdeal
"napdeal has also its o*n mo;ile app. A separate team for mo;iles *as ,reated. )his strate$y *ored in fa'or of the ,ompany and soon the mo;ile traffi, ,lim;ed and the result ,an ;e seen in terms of orders ,omin$ from mo;ile.
o* ;et*een 7% and % per ,ent of the orders ,ome o'er the mo;ile. It is predi,ta;le that the fi$ure *ill rise to 5 to /% per,ent in the ,omin$ t*o years. By the end of finan,ial year 2%15> "napdeal had ,rossed E1 ;illion in sales.
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4.1. Business *odel of #nadeal
In this model> "napdeal does not sell any $oodsTser'i,e on its o*n ;ut offers dis,ount ,oupons *hi,h ,an ;e used ;y ;uyers to a'ail dis,ount at the time of ;uyin$ $ood or a'ailin$ ser'i,e from #er,hant. "napdeal ne$otiates a deal *ith the mer,hant and ne$otiates its re'enue share in the dis,ounted 'alue. It ,har$es only its re'enue share to the ,ustomer for issuin$ a ,oupon and ass the ,ustomer to pay the mer,hants share dire,tly to the mer,hant.
"napdeal only taes its re'enue share from the ,ustomer. Consider an offer for tattoo *orth Rs. 1%%% for Rs. 2//. If "napdeal ne$otiates a re'enue share of Rs. //> it ,har$es only this amount to the ,ustomer and ass the ;alan,e amount of Rs. 2%% to ;e paid dire,tly to the mer,hant. )his *ay psy,holo$i,ally> the ,ustomer has not paid the full Rs. 2// upfront. #ost deals are made li'e after the first ,oupon is sold.
4.2. #nadeal Business *odel #euen0e
List "ellers H )oday "napdeal ,laims of ha'in$ 1%%>%%%8 "ellers on its platform. Get "ellers to ;e,ome A,ti'e H By Listin$ of the Produ,ts "ellers A$ree to the )nC of "napdeal and a$ree on a sellin$ ,ommission on e'ery order. &hene'er any order is put up on "napdeal ;y a ,ustomer> "napdeal passes that to the seller and arran$es for the pi, up and deli'ery or else the "eller dire,tly ships it to the ,ustomer. At the end of a ,ertain pre H a$reed period of settlement of payments to "ellers> "napdeal a$$re$ates the total sale a,hie'ed ;y a parti,ular seller> and after dedu,tin$ the sale ,ommission and ser'i,e ta> they *ire transfer the rest of the money to the seller. )he sale happens 'ia ,hannels as listed ;elo*9 &e;site "ale &e;App on #o;ile T )a;lets #o;ile App 4Android or i3" or others 1. ire,t 'ia )ele "ales 4Customer ,allin$ and Pla,in$ order H appens rarely no* 2. =ia Affiliate net*ors 4Blo$$ers> Coupon &e;sites> Re'ie* &e;sites et, 31 | P a $ e
!. "o,ial Buy (. Corporate "ales 4Re*ards and Re,on$nition Pro$rams and Giftin$ Platforms Adantages of #nadeal *odel •
• • •
"napdeal is only )e,hnolo$y Pro'ider therefore 'ery less hassles in ;usiness operations. A;out 2! sales ee,uti'es are hired in ea,h ,ity to tie up *ith ;rands for dis,ounts. Cost of 3perations is 'ery Lo* ,ompared to other models =ery -asy to "et 6p Business 3perations Lot of up,omin$ Brands T #er,hants are a'aila;le for tie up
;isadantages of #nadeal *odel • •
6ltra Lo* #ar$in Business9 It ,an ;e as lo* as IR 25 per ,oupon ea'y dis,ounts are offered ;y ;rands *hi,h are ne* or not no*n ;e,ause they *ant to ;uild their ,ustomer ;ase ;y offerin$ hu$e dis,ounts. Jno*n ;rands *ould not lie to tie
•
up *ith these *e;sites ;e,ause it a,tually de'alues the ser'i,e and produ,ts. Customer ,an also find that dis,ounts are a'aila;le *ithout ;uyin$ dis,ount ,oupon #ana$in$ ,oupon lo$isti,s is diffi,ult as it reuire lot of ,oordination *ith mer,hants so
•
that same ,oupon ,annot ;e used multiple times Profita;le Business only if u$e =olumes ,an ;e ,ommitted to mer,hants
•
5.&orin$ #odel of "napdeal
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5.1. *ar
An online maretpla,e is a fleet of eCommer,e stores huddled to$ether in a sin$le site. )he admin> 'endors and the ,ustomers ,onstitute the ;usiness e,osystem of a multi'endor maretpla,e. )he 'endors sell their produ,ts on the maretpla,e> *hi,h is o*ned ;y an adminTmaretpla,e o*ner. "o *hen a ,ustomer pur,hases the produ,ts from the maretpla,e site> the payment is re,ei'ed ;y the 'endor and the admin in turn re,ei'es the ,ommission from the 'endor.
Figure 1&: Market la"e -odel of Snapdeal
"napdeal is a 1%% pure and un;iased maretpla,e. o sin$le seller on "napdeal a,,ounts for more than 2 of our sales> somethin$ *hi,h no other maretpla,e in the ,ountry ,an ,laim. )he po*erful model of lo,al mer,hant 0 physi,al produ,t e,ommer,e is somethin$ *hi,h is 'ery uniue to "napdeal.,om and it $i'es the opportunity to pro'ide *ider 'ariety of ,hoi,e to the ,ustomers. "napdeal started ,han$in$ their ;usiness model as often it too until they $ot the ri$ht mi. From a ,ompany that sold dis,ount ,oupons> first offline and then online> they made the transition to ;uildin$ a maretpla,e;ased e,ommer,e ,ompany ,alled "napdeal in 2%1%. A 2%mem;er team in 2%1%> "napdeal has 1>2%% team mem;ers today.
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An online maretpla,e is a se,ure and transa,tional *e;site *here sele,ted suppliers ,an sell their produ,ts or ser'i,es to ;uyers. Buyers transa,tions are pro,essed ;y a maretpla,e operator> and usually deli'ered ;y the supplier.
Ad'anta$es of maretpla,e model for "napdeal9 •
)hey didnDt ha'e to in'est in ;uildin$ infrastru,ture 4lie *arehouses to ena;le ;uyin$
•
and sellin$ of produ,ts. )hey $ot suppliers in,ludin$ the ;i$$est ;rands and hundreds of smaller traders to list themsel'es on "napdeal.,om. &hen a ,ustomer orders a produ,t> the mer,hant dispat,hes
•
it from his o*n *arehouse. "napdeal didnDt ha'e to ,ompete *hen it ,ame to sour,in$ produ,ts and understandin$ ,ustomer taste.
As the ;usiness has $ro*n> the model $ets t*eaed. -.$. "napdeal has also started usin$ *arehouses for some of its mer,hants *ho ha'e hi$h 'olumes and not enou$h of their o*n spa,e. aaptol> on the other hand> has added a layer in the pro,ess. Produ,ts from the mer,hantsD *arehouses first ,ome to aaptol so that it ,an ensure uality of the produ,t and redu,e the per,enta$e of NreturnsD. After the ,he,> aaptol sends the pa,et to its ,ustomers.
At a time *hen most e,ommer,e ,ompanies *ere settin$ up their o*n ,ourier units to transport $oods> "napdeal de,ided to *or *ith eistin$ ,ourier ,ompanies.
Ad'anta$es of *orin$ *ith the eistin$ ,ourier ,ompanies for "napdeal9 • •
It helped "napdeal in maintainin$ a ti$ht team> Also helps "napdeal rea,h the remotest parts of the ,ountry
+."upply Chain #ana$ement at "napdeal
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"upply Chain #ana$ement and Lo$isti,s form the ;a, ;one of the e,ommer,e industry. "napdealDs aim is to ,reate a deli$htful eperien,e for their ,ustomers and as the ,ustomers e'ol'e> "napdeal needs to ,onstantly inno'ate and de'elop ne*er solutions to ser'i,e them ;etter.
"upply Chain operations at "napdeal in,lude plannin$> *arehouse mana$ement> dri'in$ pro,ess e,ellen,e> supply ,hain te,hnolo$y inte$ration> end to end solutions desi$n and implementation.
Figure 1): Supply "hain -odel of Snapdeal
"napdeal entered into a strate$i, partnership *ith GoKa'as in order to further impro'e ,ustomer eperien,e on its platform. )he ,ompanies to$ether laun,hed inno'ati'e deli'ery ser'i,es lie ( hour deli'ery> ,ard on deli'ery and /%minute re'erse pi,ups. "napdealDs fla$hip ser'i,e> "napdeal Plus has ;een tremendous su,,ess. Currently +% of the orders are "napdeal Plus fulfilled up from 7 in anuary 2%15. )he "upply Chain #ana$ement team has more than 1%%% employees and has $ro*n 5 times sin,e e,em;er 2%1(.
6.1. Te0/nology in #uly C/ain
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"napdeal is main$ massi'e in'estments in te,hnolo$y. #u,h of the money they ha'e raised> they are in'estin$ in $ro*in$ their te,hnolo$y ;ase> ;oth or$ani,ally and inor$ani,ally. &ithin the net three months> they are $oin$ to a,uire at least fi'e ,ompanies> mostly for enhan,in$ our ,ore te,hnolo$y in supply ,hain.
Ri$ht no*> "napdeal has 5%% en$ineers in the ,ompany. )hey are $oin$ to hire 1>%%% more in the net 12 months. "napdeal is settin$ up ne* de'elopment ,enters in CR> ydera;ad and Ban$alore.
6.2. are/ouse *anageent
"napdeal ,urrently has 1.! million suare feet of *arehouse spa,e *hi,h are desi$ned as inte$rated fa,ilities that ,om;ine *arehousin$> uality ,ontrol and transportation to aid sellers. )he *arehouses are spread o'er 25 ,ities. "napdeal has aimed to in,rease its num;er of *arehouses so as to ;oost the deli'ery of the produ,ts all o'er the ,ountry.
ispat,h shares the $round floor *ith ?prein*ardin$@> ?in*ardin$@ and uality ,ontrol. 3n the first floor and in the ;asement are the t*o #ain "tora$e Areas. -a,h floor is a;out !%>%%% s ft. Goods for sale are deli'ered ;y tru, dire,t from the manufa,turers at the $round floor> then spot,he,ed> in'oi,ed> ,arefully ,he,ed a$ain and sent into stora$e upstairs or do*nstairs> ;y slopin$ ,on'eyor ;elt. 3n,e sold and on their *ay out> the $oods $o throu$h another uality ,he,> are assem;led into orders> pa,ed> and handed throu$h *indo*s to ,ourier a$en,ies that ha'e permanent stations on the dispat,h floor. inety inhouse mer,handisers tra, fashion trends> ,hase and ne$otiate *ith ;rands.
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Figure 1*: arehouse operation of Snapdeal
6.3. Benefits to t/e sellers
"napdeal has laun,hed a sle* of ser'i,es for the ;enefit of sellers. It has ena;led mer,hants to start sellin$ *ithin four hours of re$istration> pro'ided them *ith a sin$le *indo* to ,hoose ,ourier ser'i,es> introdu,ed a seller app to help them mana$e their ;usiness on "napdeal throu$h mo;ile phones and> most re,ently> roped in ;ans and BFCs to se,ure finan,es for sellers.
6.4. #nadeal %lus 9#;=:
"napdeal Plus 4"8 are fulfillment ,enters of "napdeal. Fulfillment ,enters are the lo,ations *here in,omin$ orders are re,ei'ed from affiliated stores or lo,ations. )hese orders are pro,essed and filled. )hese ,enters may also *or independently of spe,ifi, ,ompanies *here orders are outsour,ed for the purpose of fulfillin$ ,ustomer orders.
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% of "napdealDs sales no* shipped throu$h its o*n fulfilment ,entres. )hese are ,alled "8 Centres. 3rders shipped throu$h "8 ha'e endtoend tra,a;ility and ha'e helped "napdeal deli'er faster than any;ody else.
"hippin$ throu$h "8 $i'es "napdeal the opportunity to s,reen uality of produ,ts and the uality of pa,a$in$. "napdeal has ;uilt this ,apa,ity rapidly. In anuary 2%15 only 7 of their sales *ere shipped throu$h "8 and in #ay 2%1+ this is %. #ore than /5 orders from "8 are fulfilled on time and *ith
"napdeal has +/ "8 ,entres a,ross 25 ,ities in India. "ellers *ho a'ail of "8 ser'i,es $et a ,omplete solution for all their lo$isti,s needs> in,ludin$ pa,a$in$ and tra,in$ of shipments. In April 2%1+ P*C and Redseer studies had reported that "napdeal promises and deli'ers the fastest in the industry. P*C had reported that "napdealDs ,ommitment to deli'ery *as 1.5 H 2.5 days ahead of others. Red"eer findin$s had further ,onfirmed that "napdeal has the fastest deli'ery time of !./ days in the industry.
6.5. T/e #;= Adantage
Ri$orous produ,t uality ,ontrol
Ray ,he,s for a,,urate mappin$ and dispat,h of ri$ht produ,t
)amperproof pa,a$in$
Bar ,odin$ of ea,h pa,et
-ndtoend tra,in$ of ea,h produ,t from entry into fulfilment ,entre to deli'ery
Faster and ontime deli'ery standards
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6.6. Logisti0s
"napdeal has set up si me$a lo$isti,s hu;s a,ross elhi CR and other ,ities to stren$then its *arehousin$ and deli'ery operations. )he ,entres are in elhiCR> Lu,no*> ydera;ad> aipur> #um;ai> Ahmeda;ad> Chennai and Jolata. All pro,esses from re,eipt of sto,s> uality inspe,tion> preparation for dispat,h and return handlin$ are a'aila;le to sellers under one roof. )his redu,es ,osts for sellers and offer them ;etter 'isi;ility and ,ontrol of their sto,s.
"napdeal fo,uses on deli'ery. For the same> "napdeal has in'ested a reported Rs. 117 ,rores to tae its stae in lo$isti,s ,ompany Goa'as to (2> and ;e,ome its lar$est shareholder. )his has $i'en "napdeal a maKor ;oost as it fo,uses on ;uildin$ its ;a,end ,apa;ilities. "napdeal has also impro'ed data analtyi,s for its suppliers> so that they ,an plan a,,ordin$ly. "napdeal is tain$ steps to impro'e its ;a,end lo$isti,s.
Figure 1,: Snapdeal open ogisti"s
6.!. ;isat0/ %ro0ess
)he dispat,h ;e$ins *ith prein*ardin$> *here ,ard;oard ;oes full of freshly re,ei'ed produ,ts to*er to the ,eilin$. As lun,h ;rea ends and the *orers *ho are mostly male ,ontra,t *orers and identified ;y differently ,oloured )shirts for different fun,tions return to their stations> li$hts $o on at ea,h *or;en,h. 3ne does random ,he,s of the items> another photo$raphs ea,h
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item *ith a *e; ,amera> a third prepares in'oi,es and ,al,ulates ta dependin$ on the state *here the manufa,turer is lo,ated. i$h'alue and ele,troni, items lie Ke*ellery and phones $o strai$ht to the se,ure *arehouse in the ;asement. 3n,e un;oed> all items are mo'ed in plasti, ,rates of different si items are prioritised a,,ordin$ to first ordered> first out. A pair of ;oots is ,he,ed9 it must mat,h the photo on s,reen> the soles are ,ompared for si and then the ;oots are *ei$hed for the ,ourier. )he shoe;o is ta$$ed and sent for pa,in$ in "napdealDs ,ustomary $rey flei;le plasti, ,o'ers. 6.". >uality Control
:uality Control has t*o ,hoi,es9 a,,ept or reKe,t. "o "napdeal ,ompares ea,h and e'ery produ,t *ith the *e; ,amera photo on the s,reen> ,he, for dirt smud$es or torn ,loth. If it passes> they fi a ;ar ,ode on it> slip it ;a, into its plasti, sheath and put it into another plasti, ,rate to $o to the #ain "tora$e Area. 3n,e sold and on their *ay out> the $oods $o throu$h another uality ,he,> are assem;led into orders> pa,ed> and handed throu$h *indo*s to ,ourier a$en,ies that ha'e permanent stations on the dispat,h floor. 3ne does random ,he,s of the items> another photo$raphs ea,h item *ith a *e; ,amera> a third prepares in'oi,es and ,al,ulates ta dependin$ on the state *here the manufa,turer is lo,ated. i$h'alue and ele,troni, items lie Ke*ellery and phones $o strai$ht to the se,ure *arehouse in the ;asement. 3n,e un;oed> all items are mo'ed in plasti, ,rates of different si
"napdeal has also started usin$ *arehouses for some of its mer,hants *ho ha'e hi$h 'olumes and not enou$h of their o*n spa,e. &ith multiple ,hoi,es of online maretpla,es a'aila;le for sellers> "napdeal has taen another step to attra,t more of them ;y announ,in$ its fulfillment ser'i,e la;elled *ith a title ,alled N"afe "hipD "ellers ,an a'ail this ser'i,e in t*o *ays. Firstly> 4- | P a $ e
;y shippin$ the produ,t to ,ustomers throu$h "napdealDs lo$isti,s partners and se,ondly> ;y routin$ the order throu$h "napdealDs fulfillment ,enters and then ship it to the ,ustomer. Both sellers and lo$isti,s pro'iders ha'e ;een a;le to sa'e up to one third of the ,ost of shipment ;y usin$ the "afe"hip platform. Additional feature of "afe "hip in,ludes 1%% tra, a;ility for sellers to ship and tra, their produ,ts a,ross India. Italso handles preshipment 'erifi,ation> returnsTrepla,ementTrefunds pro,essin$ and produ,t uality ,ontrol.
6.1-. ;eliery #eri0e
•
Commitment9 "hipment *ith 2( hours
Promisin$ deli'ery in t*o days and others follo*ed suit. )he net tar$et *as sameday deli'ery. "napdeal set itself #ission 2(> *hi,h *as to ship 75 per ,ent of produ,ts *ithin 2( hours of the order ;ein$ pla,ed. By the end of the uarter> % per ,ent of produ,ts *ere ;ein$ shipped in a day.
•
Credi;ility throu$h )rust Pay
"napdeal laun,hed )rust Pay in April 2%1!. &ith )rust Pay> the payment a ,ustomer maes $oes into an es,ro* a,,ount *here it stays for a *ee till the deli'ery happens. Any failure in deli'ery and the money paid is immediately returned. All "napdeal pa,ets ha'e the )rust Pay $uarantee seal on them. Add on strate$y is to help their sellers throu$h "napdeal plus ser'i,e> to a,,ess ,heap ,redit. &ith this> the sellers ,an $ro* fast and ,an $et needed ,redit to epand their ,apa,ities.
"napdeal deli'ers more than a million mer,handise in metro ,ities su,h as #um;ai> Chennai> Ban$alore> elhi alone. "napdeal outsour,es their lo$isti,s and deli'ery *or to pri'ate players su,h as Blueart> )C> Professional ,ouriers> Fed- and L. )he *orers must dispat,h pur,hases *ithin ( minutes of the order ;ein$ pla,ed online. If the *e;site says deli'ery time ( hours> they *ant to $i'e the ,ourier (7 hours and 12 minutes. Althou$h the median is one hour. )hey ha'e to ,at,h the t*o ,ourier dispat,h times of /.!% am
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and 5.!% pm. If they miss one then there is a 12hour delay. )he (minute tar$et is to mae sure there is no pileup to*ards the dispat,h time.
Figure 2.: 'elivery ro"ess of Snapdeal
Courier ,ompanies ,har$e around IR !% to 5%T for a produ,t deli'ery of 5%%$m produ,t> sin,e they deli'ery more than a million mer,handise on daily ;asis e'en if a produ,t is of a pri,e ran$e of IR 2%% to (%%T then ,an easily a,hie'e ;reae'en in ,ash flo* e'en *ithout ,har$in$ any deli'ery ,har$es from ,ustomers.
Apart from that> the ,ourier ,ompanies handle "napdealDs lo$isti,s *hi,h help "napdeal to handle multiprodu,ts and maes their deli'ery ,har$es to minimum.
6.11.Last *ile ;eliery
Currently> lo$isti,s inte$ration *ith "napdeal taes pla,e throu$h appli,ation pro$ram interfa,e 4API model. It ,ould tae months to ,omplete as players may ha'e different APIs. Plu$and play model ,an redu,e the time taen to inte$rate to a *ee> espe,ially for partners *ho ha'e some eposure to te,hnolo$y in their operations.
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)herefore> "napdeal is tyin$ up *ith Plu$andplay model. )his te,hnolo$y helps "napdeal allo,ate reuisite 'olumes to deli'ery partners ;y analy
Plu$andplay ser'i,e uses realtime tra,in$> te,hnolo$ies and predi,ti'e analyti,s that allo*s "napdeal to optimise their ;usinesses and $ain operational effi,ien,ies. "marter plannin$ and fore,astin$ *ill allo* redu,tion in deli'ery timelines. At the same time> it *ill help redu,e lossesTimpro'e a,,urate deli'eries> there;y helpin$ us impro'e our ontime deli'ery promise.
"napdeal has also tied up *ith last mile deli'ery ,ompany dPronto> a $roup ,ompany of "C ;a,ed sillin$ partner -mpo*er Pra$ati. )he silin$ ,ompany has a tar$et to train 5%>%%% personnel o'er the net three years for Ko;s in the lo$isti,s se,tor. )he partnership is aimed at "napdeal tar$etin$ hi$her su,,ess rates in same day deli'eries. 6.12.
Ba0< end
)all shel'es near;y ,arry par,els ready to ;e shipped. A ,omputer prints an address la;el and identifies all items in a sin$le order. It also> ,ourtesy "napdealDs proprietary al$orithms> de,ides *hi,h ,ourier ser'i,e *ill perform ea,h deli'ery. )hen "napdeal *orers deli'er ea,h pa,a$e to the ,orre,t ,ourier *indo*. 6.13.
Custoer #eri0e
In the past years> "napdeal has performed *ell due to their uality of ,ustomer ser'i,e. "napdeal has streamlined *orflo* in pla,e> *hi,h ensures that the time ;et*een a ,ustomer pla,in$ an order and the produ,t ;ein$ shipped from their end is not more than 12 hours. )heir aim is to ensure Nlast mile deli'eryD a,ross India. Customers ,an tra, orders> shipment details and also mae ,han$es to open orders. "uper sa'er shippin$ and prime shippin$ are also a'aila;le. )hey ha'e 1%% se,ure payments and a,,ept all maKor de;it and ,redit ,ards. )here is 1%%payment prote,tion throu$h )rust Pay. )hey ha'e a help ,enter *here ,ustomers ,an as
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them any ueries re$ardin$ their order. "ame day epress deli'ery on thousands of produ,ts at no etra ,har$es is also laun,hed at "napdeal. 7.Con,lusion "e'eral or$anisation lie "napdeal and Pantaloons are ;e,omin$ a*are of the emer$in$ paradi$m of internet*or ,ompetition> and that the su,,essful inte$ration and mana$ement of the supply ,hain mana$ement pro,esses a,ross mem;ers of the supply ,hain *ill determine the ultimate su,,ess of the sin$le enterprise. 3r$ani a manufa,turer of ,onsumer dura;le $oods implemented a rapid deli'ery system that pro'ided retailers *ith deli'eries in 2( or ( hours any*here in the India. )he rapid deli'ery system *as desi$ned to ena;le the retailers to impro'e ser'i,e to retail ,onsumers *hile holdin$ less in'entory and thus impro'in$ per unit profita;ility. After doin$ this proKe,t in Pantaloon Retail and "napdeal &e understand ho* ea,tly the *or is done in the supply ,hain ;ut after o;ser'in$ many thin$s &e rea,h to the ,on,lusion that there are still many $aps in the supply ,hain of the ,ompany and *e must try our ;est to fulfill these $aps so that *e pro'ide ;etter ser'i,e to our ,ustomers and also redu,e our operatin$ ,ost ;e,ause *e are in 'alue retailin$ so only ,ost ,uttin$ pro'ides us ;etter mar$ins and to ar,hi'e all this *e ha'e to *or hard and mae stron$ relation *ith our 'endors> lo$isti,s ser'i,e pro'ider and *ith our ,ustomers.
. Bi;lio$raphy
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