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Supply Chain StudyPresented to Dr. Xiuli He

MBAD 6208 - Supply Chain management

By Kaushik Reddy Boyapalli, Satyajeet Saravane & Vishal Pareek

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ROSS - Overview

1982

Pleasanton, California

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Products & Sales

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Competitors

9,721.07

19,279.00

25,878.37

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

Annual Sales in Millions

Ross Stores

Kohl's

TJX Companies

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Competitors Contd..

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Net Profit Margin (%)

8.09%

5.11%

7.37%

6.41%

Ross Stores

Kohl's

TJX Companies

Industry Median

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Locations

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Strategy & Target Customer

18- to 54-year-old shoppers from primarily middle-income

households.

Off-price strategy.

20% to 60% cheaper than specialty store.

Minimal in store service.

Quantity discount from suppliers.

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Revenue vs Net Income

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Challenges

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Performance on SC Drivers

Sourcing

Network of approximately 7,900 merchandise vendors andmanufacturers.

Off-pricing business strategy

Pricing Sell brand merchandise 20%-60% lower then regular price.

Inventory

Packaway inventory accounted for 47% and 49% of totalinventories as of Febraury 02, 2013 and January 28,2012.

Transportation Contract Carriers

Use third party cross docks to distribute

Information

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Facilities

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Merchandise Flow:

PROCESS PEOPLE TECHNOLOGY

In any operations setting the merchandise/products pass through

the following flow or their combinations:

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Distribution Center:

ROSS SEDC

RTW

Drawstrings Other

NRTW

Fragile HAD Bulk

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PROCESS

A process than follows six sigma and reduces the cost of

processing to less than 23 cents for a merchandise

PEOPLE:

More than 1800 associates working in 3 shifts to achieve the

target of processing 1.2 million to 1.3 million merchnadise

everyday.

Huge labor demand : Close ties with DMSI staffing agency and

measures no discourage union formations

TECHNOLOGY:

Oracle RETEK merchandising software

RMS and RDM Web

Intelligrated software service for the unit picking system

Work in symphony to deliver real time results to management

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PROCESS:

The main aim of the supply chain of Ross is keeping the costslow. They do nor manufacture therefore the pack-awayinventory is high and inventory holding costs are reflected inthe final price.

Standardized process is set at DCs to reduce the costs andmaximize processing:

1. Receiving

2. Sorting & Unit ID

3. Marking

4. Waved for either: Hotel (storage. Warehouses)

Tilt Tray/pack range

Shipping

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Receiving:

1. Create Appointment2. Schedule Appointment

3. Print Receiving Packet

4. Trailer Unload

5. Freight Bill Verification

6. Freight Bill Reconciliation

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Sorting and Unit ID:

- Verifies the merchandise according to the specifications and

details provided by the purchasing office

- Receiving of merchandise

- The units are entered into the system which are tracked in

real time by the management to reach the production target

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Marking:

- Labor intensive and most time consuming stage in the process

- Bottleneck

- Markers apply the price tickets to each and every merchandise

manually

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Waving:

Depending on the demand the marked

merchandise can waved to any of the following:

Tilt tray

Hotel

Pack range

Shipping

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Birds Eye View:

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