By: Group 2

Harsh Sharma 3697Prachi Chheda 3052Priyamvada Singh 2857Atreyi Bharadwaj 818Pushpak Elleedu 3275Vivekananda 3576Venkata Karthik 3273

Introduction

• Pantaloon Retail (India) Limited, is a large Indian retailer, part of the Future Group, and operates in multiple retail formats in both, value and lifestyle, segments of the Indian consumer market.

• Headquarter in Mumbai.

• Pantaloons which was previously controlled by the Future Group

has now been taken over by Aditya Birla Nuvo Limited

Pantaloons

• Chain of 72 fashion stores across 35 cities and towns• Its SCM handles around 30 million SKU’s every day across

the country.• SCM department is awarded the ISO 9001 2000 certificate

by Det Norske Veritus.• It has its in house as well as out house brands

Supply Chain FlowIn House Brands:

Out House Brands:

ManufacturerCentral

Warehouse(Tarapur)

Distribution Centre Place

(Mumbai- Bhiwandi)

Retail Stores

Customers

Manufacturer(Vendors) Retail Stores Customers

• 70% of their business is done by selling their own products

• Remaining 30% includes complete inventories of non apparels and some apparels brands like UMM, Tommy Hilfiger ,AND etc.

• Out house brands occupies only 400 sq feet of total floor place of Pantaloons

Inventory…

Warehouse:• Central warehouse is in Tarapur• Distribution Centre for Mumbai and Navi Mumbai is

situated in Bhiwandi• Distribution Centre Space- 10000 sq feet (approx)

Auto Replenishment System(ARS)

• Automatic purchase order creation and auto delivery of products directly to the retail store and warehouse.

Benefits:• Estimates the need for weekly

ordering• Reduces administrative costs• Provides flexible reporting• Simplifies the procurement process

Enterprise Resource Planning

• Software that integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing,inventory control,order tracking etc.

SAP:• All the sales data generated in a day is uploaded into SAP

overnight, automatically updating the inventory movement and financial changes.

• It is not only able to handle retail functionality but has also generated 50 lakh purchase orders with SAP, and are exclusively paying all our vendors only through SAP interfacing with 167 banks.

Minimum Base Quantity

• Also known as Base Stock refers to the minimum level of stock the retailer plans to carry in a store.

• The Base stock figures are flexible and may change on basis of the seasons.

• Back up stock- it stores stock for 7 weeks– Eg :If MBQ for the product is 6 pieces, then

the back up stock will be 6*7 weeks i.e 42 pieces.

Merchandising team

• Organizing shelves, removing expired products, building displays.

• Acts as the core team for all the Outlets.• Decides different apparels for different region or

area– Eg: Clothes that may be displayed in Vashi or

Ghatkopar area may differ from apparels at South Bombay.

• Inhouse stock is replenished thrice a week on average, whereas outhouse stock is replenished once in 2 weeks.

• Pricing varies in different stores, though in Mumbai it is all d same(exception Vashi).

• Outhouse brands are directly supplied to the stores.

• The entire ordering of new items is done by the merchandising team.

RFID

• Pantaloons Retail (India) has piloted an RFID project at one its warehouses in Tarapur using 1,000 RFID tags.

• Got rid of human intervention, tracking reverse logistics & traceability of varied Products in the supply chain.

• Had drawbacks because RFID tags should be used for products which were used up on a regular basis and not on seasonal basis.

Defective Stock

• Inhouse Brands:– Stock is sent back to the distribution channel

• Out house brands:– Debit note is issued against the vendor stating the

quantity of defective goods returned and the amount to be returned to purchaser.

Customer relationship Management

• To survive in the tough competition Pantaloons uses different strategies to attract the customers and to retain them.– Gift vouchers – Customer Loyalty Programs etc.

Customer Loyalty Programs