for ### Rajesh Ray Managing Consultant & Product Lead (Supply Chain Management) IBM India, Kolkata

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1 Suppty Cham Management for ### Rajesh Ray Managing Consultant & Product Lead (Supply Chain Management) IBM India, Kolkata M Tata McGraw Hill Education Private Limited NEW DELHI McGraw-Hill Offices New Delhi New York St Louis San Francisco Auckland Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto

2 Contents Prefate v Introduction 1. Xntroducing Retall Supply Chain 3 Introducing Retail Supply Chain 4 How Retail Supply Chain is Different from Manufacturing Supply Chain 5 Supply Chain and Logistics 9 Retail Supply Chain Management is a Subset of Retail Management 13 Retail Supply Chain Elements 14 Retail is Not One Supply Chain-Category and Format Specific Chain 17 Strategie, Tactical, Operational and Execution View of Retail Supply Chain 18 Retail Supply Chain Maturity 20 Conclusion 21 Review Questions 22 Assignments 22 PART 1: Merchandise Flanning 2. Category Management and Merchandise Budgeting 25 Category Management Defined 26 Category Management Process 26 Enabling Components of Category Management 36 Category Captain 38 Challenges in Category Management 38 What is Merchandising and What are its Benefits 42 Merchandise Types 42 Merchandise Hierarchy 43 Merchandise Forecasting 44 Forecasting Methods 44 Merchandise Budgeting 49 Six Months Merchandise Budgeting 51 Open to Buy Control 53 Conclusion 55 Review Questions 56 Assignments 56

3 viii Contents 3. Assortment and Space Management 57 The Concept of Assortment Management 58 Assortment Management Framework 59 Assortment Objectives 60 f \ Assortment Selection 61 Assortment Plan 64 Role of Data and Information Technology in Assortment 66 Store Clustering 67 The Concept of Space Management and its Benefits 69 Different Stages of Space Flanning 69 The Concept of Planograms 70 Issues in Space Management 72 Role of Information Technology in Space Management 74 Conclusion 74 p Review Questions 75 Assignment Retall Pridng 76 Retail Pricing Challenges 77 Managing the Retail Pricing Life Cycle 81 Managing Retail Promotions 81 Managing Retail Markdowns 90 Promotion Management Maturity Model 91 Personalised Pricing/One to One Pricing 91 IT for Managing Price, Promotion and Markdown 92 Conclusion 96 Review Questions 96 Assigntnents 96 PART 2: Retail Froduct 5. Retail Froduct Lifecycle Management 99 Product Design 99 Private Labels 101 Retail Packaging 105 Shelf Ready Packaging 107 Green Design and Packaging 111 IT for Retail Product Life Cycle Management 112 Conclusion 116 Review Questions 117 Objective Type Questions 117 Assignments 117 PART 3; Managing Retail Logistics 6. Retall Distribution and Replenishment 121 Retail Distribution 121 Retail Replenishment 123

4 Direct Store Delivery (DSD) 134, Managing Retail Home Delivery 135 IT for Retail Distribution and Replenishment 137 Measures for Retail Distribution and Replenishment 137 / Conclusion 138 Review Questions 139 Objective Type Questions 139 * Assignments 139 i 7. Retail Logistics 140 Retail Transport 141? ",? Retail Waxehousing 157,. Conclusion 190 Review Questions 191 ' ^ ^ ; ' Objective Type Questions 192 : ' Assignments 192 ' " 8. Retail Logistics-Contemporary Issues 193 Managing Retail Shrinkage 194 Managing Logistics Service Provider 198 Managing Logistics Visibility and Exceptions 208 Green Retailing 212,,, Green Information Technology 214 Conclusion 214 Review Questions 215 Objective Type Questions 215 Assignments 215 ; PART 4: Managing Retail Stakeholder Relationships 9. Retail Supplier Relationship Management 219 Retail Sourcing 219 Merchandise procurement 222 Global Sourcing 227 Green Sourcing 234 Sourcing Measures 235 Information Technology for Sourcing 236 Retail Sourcing Trends 237 Conclusion 238 Review Questions 239 Objective Type Questions 239 Assignments Retail Customer Relationship Management 241 Introducing Retail Customer Relationship Management 243 Customer Service 244 Order Management 251 Multi Channel Retailing 255

5 x Contents Retail Return and Reverse Logistics 260 'C'C- Retail Loyalty Programmes 270 Retail Kiosk 275 Green Retailing-What it Means for CRM 278 > Measures of Retail CRM 278 Conclusion 279 Review Questions 280 Ohjective Type Questions 280 Assignments 281 PART 5: Category and Format Specific Supply Chain Issues 11. Food and Grocery Retalling Supply Chain 28ä Food and Grocery Retailing 286 Food and Grocery Supply Chain Characteristics 289 Fresh Fruit and Vegetable Supply Chain 290 Contract and Corporate Farming 291,. s Managing the Cold Chain 294 Food Safety 295 Food Processing 298 ;. J Fresh Food Retailing An Indian perspective 299 Retail DELI Section 300 Dairy Retailing 300 Live Stock and Poultry Retailing 305 Food Services 309 Technology Requirements for Food and Grocery Retailing 316 Conclusion 318,..... Review Questions 318 Objective Type Questions 319 r Assignments Apparel and Footwear Retailing Supply Chain 320 Apparel and Footwear Retailing-Understanding the Segment 321 Apparel Retailing Supply Chain 322 Supply Chain Characteristics 322 Pre Pack planning 326 Apparel Retailing in India 328 Apparel Retail Supply Chain Innovations 332 Footwear Retailing 337 Managing Footwear Retailing Supply Chain Efficiently: Case Study: Khadim 340 Conclusion 344 Review Questions 344 i Assignments 345 * ^ 13. Other Category Retailing Supply Chain 346 Consumer Electronics Retailing-Understanding the Segment 346

6 Contents xi Consumer Electronics Retailing Supply Chain Characteristics 347 Jewellery Retailing 350 Home Furnishing Retailing 352 Health and Beauty Retailing 354 Pharma Retailing 355 Books and Music 357 Other Category Retailing 359 Conclusion 360 Review Questions 360 Assignments Managing Supply Chains of Different Retall Formats 361 Classification of Retailers 362 Organised B2C Retail Chain Formats 363 Organised B2B Cash and Carry Formats 366 Rural Retail Formats 368 Airport Retailing 372 Cooperative Stores 373 Non Store based Retail Formats 374 Online Shopping/E Tailing 377 Service Retailing 382 Retailing of Financial Products and Retail Banking 382 Courier Service Retailing 384 Conclusion 385 Review Questions 386 Assignments 386 PART 6: Information Technology for Retail 15. Retail Technology Retail Technology Maturity Model 390 Bar Coding 393 RF1D 394 Retail ERP 398 Retail Analytics 408 Point of Sales Solutions 412 Mobile Applications 417 Other Emerging Retail Technologies 422 Conclusion 424 Review Questions 425 Objective Type Questions 426 Assignments 426 Index