Information Technology in Retail Industry – Shoppers Stop

Presented by:Abhijeet Patil Roll No. 15Babita More Roll No. 10 Neha Parkhi Roll No. 26Shoeb Momin Roll No. 12Snehal Badane Roll No. 16

Indian Retail Industry1. Indian retail industry is one of the

fastest growing industries in India. With growing market demand, the industry is expected to grow at a pace of 25-30% annually.

2. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.

3. The retail industry in India is expected to go up to US$ 833 billion by the year 2013.

4. And US$ 1.3 trillion by the year 2018.

1. Shoppers Stop Ltd. Is a chain of Retail stores owned by K. Raheja Group.

2. Vision - " To be a global retailer in India and maintain its No. 1 position in the Indian market in the Department Store category."

3. Group – The company houses a host of many international and domestic brands across various categories such as apparel, accessories, cosmetics, home and kitchenware and also its own private brands.

5. It was awarded the "Most Admired Apparel Retailer" at the Images Fashion Awards 2008

4. Shoppers Stop started in 1991 with its first store in Andheri, Mumbai

SCM• SC is a integration and management of key

business functions, that promote the flow of products down steam from raw material to the end consumer and flow of information upstream.

Distribution CenterA distribution centre is a warehouse which is used to stock products (goods) to be re-distributed to retailers, to wholesalers or directly to consumers.

Distribution Center of Shoppers Stop for Maharashtra region is at Bhivandi, Mumbai

Advantages of Distribution Center1. More accurate sales forecasts are

possible when retailers combine forecasts for many stores serviced by one distributor

2. Enables retailers to carry less merchandise in the store

3. Easier to avoid running out of stock

4. Retail store space is more expensive than space at the distribution center

Earlier Procedure at SS

Worker at DC

Hence,1.Delay in turn Around Time2.Limited Visibility for DC Manager

Implementing ADCMSThe entire software was developed by Mobicule Technologies, a player in the enterprise mobility space.

Motorola – Hand Held Computer

Dell – Sub Server

DC managers and the Centreal Supply Chain Team can now log on to the DCMS using a Web interface and monitor DC activities on a real-time basis.

Benefits

Accuracy of Dispatches

Stock Outs reduced by

Technical DetailsHardware details1. Server hardware – VMware virtualised server using Dell Poweredge

2950, 2 GB RAM, 3 ghz processor, 70 GB HDD.2. Wireless communication using Cisco thin solution network, which is

centrally managed.3. Motorola Symbol MC3090 handheld mobile computer with scanner.

Software Details1. RHE Linux 42. Development environment – JDK 63. Database used – MYSQL 54. JBoss App Server 4.0.25. Symbol MC3090 OS – Windows CE 5.06. Scanner application – Mobicule’s Warehouse Automation deployed

on Java 1.3 crème 4.12

EDI• EDI is the computer-to-computer exchange of business

documents between retailers and vendors• Merchandise sales, Inventory On Hand, Orders• Advanced shipping notices, • Receipt of merchandise, Invoices for payment

– Standards: • UCS (Uniform Communication Standard)• VICS (Voluntary Interindustry Commerce Solutions)

– Transmission system:• Intranet: local area network (LAN) that employs Internet technology• Extranet: collaborative network that uses Internet technology to link

businesses with suppliers, customers, etc.

EDI

• Benefits:– Reduces cycle time – inventory turnover is higher– Improves overall quality of communications through better record-keeping– Information can be easily analyzed

Bull Whip Effect

Proximity Marketing

• Proximity marketing is the localized wireless distribution of advertising content associated with a particular place.

• Benefits:– Simple– Permission Based &– Cost Effective

Bangalore

Cloud Computing - CRMInstead of buying and maintaining expensive servers and software to manage customer conversations and information, companies can use Web-based (“cloud”) applications to run their CRM—and get a high return on their investment

Benefits:1.For sales managers, CRM cloud apps provide real-time visibility into their team’s activities so they can forecast sales with confidence.2.Softwares are always updated3.Hence, Customers focus on managing CRM and not Managing Technology

For CRM to work effectively, it should have:1.High reliability – uptime that exceeds 99.9%2.High performance – data access in less than 300 ms3.High security – industry certifications such as ISO27001 and SAS 70 Type II

Other Software Used by SS • SAS Business Intelligence : SS could create focused

campaigns and offer incentives to its high-value customers, study the demographics of target markets and position appropriate merchandise in its retail stores. – Loyalty Study– Buying Behaviour– Distribution and Logistics analysis

• Oracle Data Integrator: SS is now able to reduce the time taken to refresh data to its data warehouse from half a day to one hour, which ensures managers receive timely sales, inventory and loyalty data. Standard Reports are now completed in minutes as compared to an hour with the previous technology platform.

Other Software Used by SS

• JDA's Intactix applications will help the retailer to optimize its floor space and visualize a layout before they are actually built.

• JDA Space Planning offers store-specific, micro-merchandising and collaboration capabilities that efficiently optimize the position, performance and layout of product categories for better alignment with local consumer demand.

Disaster Recovery

Virtualization

• We have saved about 30% of the total power used in our data centre by the adoption of virtualization.

Project Drishti• Project DRISHTI, Shoppers Stop's data warehouse and mining project, was set up

to do just that. Conceptualized in 2007 and launched in early 2008, the project combined a never-before-attempted stack of best-of-breed solutions from various technology domains. But like all pioneering IT projects, although the technology was tricky, it wasn't the biggest challenge. "Getting users out of a 'reports mindset' and into thinking analytics was," says Gupta.

• Today, however, the chain is focused on results. Project DRISHTI enabled micro-segmentation across Shoppers Stop's multiple retail formats to create offers targeted at its high spenders, resulting in a 3 percent increase. It's also allowed the chain to analyze customers by demography. One six-month study of the Gujarati community, resulted in targeted offers and increased that customer base (within a city) by two percent. In addition, it's allowed the retailer to check whether multiple stores in the same city were cannibalizing each other's customers and measure merchandise availability in a store.

• "It also offers us the ability to analyze over three years of data across formats thus tracking the evolution of customers, which is valuable in understanding churn and wallet-share," says Gupta.

References

1. Visit:1. Meeting with Mr. Sachin Badal of Shoppers Stop, Camp

2. Websites:1. http://biztech2.in.com/india/casestudies/scm/dcms-improves-sc-

efficiency-at-shoppers-stop/62802/02. www.wikipedia.com3. http://corporate.shoppersstop.com/corporate/vision.aspx4. http://www.google.co.in/images?

hl=en&q=shoppers+stop+mission+and+vision&um=1&ie=UTF-8&source=og&sa=N&tab=wi&biw=1280&bih=642

5. http://biztech2.in.com/news/business-intelligence/shoppers-stop-reinforces-sales-performance-with-oracle/87962/0

6. http://www.cio100.in/case-study/shopper%E2%80%99s-stop-it-boosts-retail-industry

3. Magazine:1. DataQuest 2. IBM Journal