Scm in Food

Deepak Jakate, Head Logistics Park Business, RLPL.

Retail Supply Chain

Retail Supply chain Synopsis The present state of the Indian Retail industry is marked by fierce competition due entry of global majors & several new entrants. The rapid growth of the Indian retail industry & low penetration levels of organized retail are attracting a large number of players and massive investment. The relative share of each player will depend on the price of its offering to the discerning Indian customer. Retail companies are now turning to their supply chain & distribution strategies as a way to differentiate their products and cut costs. Logistical expertise should be used not only to survive, but also to sustain real competitive advantage. Retail supply chains are complex & composed of multiple interacting supply chains for various categories & formats. They need to be highly effective as well as defect free. This demands careful design of supply chain processes that are both robust & scalable. Lean Supply Chains are focused on supplying products at the least possible cost, thus demanding lean distribution strategies. Lean six sigma is a powerful tool for achieving this objective. A well designed & meticulously implemented lean six sigma project can yield significant benefits. Key words: Retail, Supply chain, outsourcing, lean, six sigma.

Retail Industry – An overview Retail is globally the largest private sector industry. It is highly organized in the developed economies where penetration of organized retail is as high as 85 % (USA). Several American & European retailers figure in the Fortune 500 list. In emerging markets, organized retail started growing from a negligible base of about only 5 % in the last 10 to 15 years with current penetration levels ranging from 20 % (China) to 38 % (Brazil). Retail is a critical sector for the Indian economy accounting for around 8% of the total employment making it India’s second largest employer after agriculture. The size of...