Discussion theme 1- Improving supply chains and operations will enable retailers in India to enhance competitiveness and successfully deploy growth initiatives.
Mastery of supply chain dynamics is a critical enabler for the growth of modern trade. The primary objective of the retail supply chain is to source, store, transport and deliver the right merchandise to the store shelf at minimum costs, in the right condition and within acceptable timeframes. Globally, robust supply chain management is viewed as a competitive advantage. In the Indian context, most retailers are in the early stages of developing their supply chains, although there are specific instances of higher levels of supply chain maturity. Some retailers have implemented cutting-edge IT systems to support and scale operations, enabling them to generate operational efficiency, increase productivity and improve customer experience. Observations pertaining to supply chain, logistics and operations, as based upon our primary research interviews, internal insights and secondary findings are listed below -
Supply chain- Efficient sourcing practices, managing inventory turns and overall supply chain management are important measures to improve profitability. The ability to measure and manage supply chain risks is essential to the success of any retail operation.
Operations - The decision to close stores is a function of unfavourable catchment areas, being located in malls witnessing dwindling footfalls, and a mismatch with the current format portfolios.
Primary case examples
Aditya Birla Retail Ltd’s -
Methodology for Scoring Store Success
Best Practices Workshops