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PROJECT REPORT
ON
SUPPLY CHAIN MANAGEMENT OF VISHAL
MEGA MART IN JALANDHAR
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE
DEGREE OF MBA OF
SUBMITTED TO:SUBMITTED BY:-
MR. VISHAL CHOPRA RAHUL JAISWALREG.NO.-10901286
MBA(RETAIL)- IIIrd SEM (LSM)
LPU, PHAGWARA
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ACKNOWLEDGEMENT
It is indeed of great moment to pleasure to express my senses of per found gratitude &
indebtness to all the people who have been instrumental in making my training a rich
experience. The successful task would be incomplete without the mention of the people whose
constant guidance and encouragement crown all efforts with success.
I express my sincere gratitude to my industry guide Mr. VIKASH AHUJA (STORE
MANAGER) for giving me an opportunity to do my summer training at his esteemed
organization VISHAL MEGA MART.
I would like to extend my heartiest thanks to my corporate guide Mr. VIKASH AHUJA
(STORE MANAGER) who took out time from his busy schedule to brief me and provide me
with valuable suggestions from time to time.
I feel highly indebted to Mr. MANISH RAJPUT (TRAINING GUIDE) and Mr. Ashwani
Panesar (TRAINING COORDINATOR) , Lovely Professional University. They have always
been the source of inspiration.
I would also like to pay my acknowledgement to all respondents for taking out time from their
busy schedule and providing me with relevant information which contributed significantly in my
project analysis.
(RAHUL JAISWAL)
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TABLE OF CONTENTS
1 ACKNOWLDGEMENT
2 INTRODUCTION
3 VRPLs BUSINESS
4 VRPL Business Processes
5 VISHAL Apparels Brand
6 STORE
7 ROLE OF SUPPLY CHAIN
MANAGEMENT
8 LITRATURE REVIEW
9 OBJECTIVE OF STUDY
10 RESEARCHMETHODOLOGY
11 COLLECTION OF DATA
12 FINDINGS AND
RECOMMENDATIONS
13 CONCLUSION
14 REFERENCES
15 ANNEXTURE
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INTRODUCTION OF VISHAL MEGA MART
The glory of Vishal Groups success is the ascent it has come to accomplish in the field of
manufacturing and retailing of readymade garments. The credit for this radiance goes to its
dynamic of directors Mr. Ram Chandra Agarwal &Mrs. Uma Agarwal who have transformed
their foresightedness into an unending saga of growth. Identifying the immense market in
fashion garment for the masses the Group has actually established benchmarks that many others
are inspired to follow. Not resting on its laurels, the Group is busy identifying new avenues of
growth and its companies are busy implementing the expansion plans to cash in on emerging
potentials in the changing business environment of modern Indias enterprise.
The jewel in Vishal Groups crown is its flagship company Vishal Retail Ltd. a company
engaged in Hyper market stores with an average area of 25,000 to 30,000 sq. ft. through an
impressive chain of 172 fully integrated stores in spread over the area of more than 24,00,000 sq.
ft. in around 110 cities across India in 24 states. The turnover of the company for 09-10 was
1105 Crore . Maintaining the highest standards in quality and design, these stores have come to
offer the finest fashion garments at down-to-earth price structure. A fact that is better visible in
the constant flow of shoppers all through the year. Under the title of Vishal Mega Mart these
stores have emerged as the regular haunts for the bargain-hunters and fashion enthusiasts alike.
The saga of Vishal Group dates back to 2001 when its directors foresaw the emerging potentials
in the retail industry which is indeed the largest sector in the global economy. Imbibing its
innovative concepts and techniques the Group identified the vast scope of growth in retailing for
the common man. Its stores have gained an enviable prominence as being the ideal store for the
common man where an extensive variety and quality is offered at a very, very reasonable price
structure. The Groups expertise in the field of retail marketing over the years and its focus on
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regions, cities and exact customer preferences have earned the Group an undisputed leadership
status to Vishal Group.
FOUNDER OF VISHAL MEGA MART
Mr. Ram Chandra Agarwal Mrs. Uma Agarwal
DETAILS OF DIRECTORS:-
Mr. Ram Chandra Agarwal, 43 years, is VRPLs Chairman and Managing Director. He holds
a bachelors degree in commerce from St. Xaviers College,
Kolkata. Mr. Agarwal has more than 20 years of experience in the retail industry and has beenwith VRPL since their inception in 1997. He started the business under the name of Vishal
Garment with a small store at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for
the development of the value retailing industry in India and is well known for his business
acumen.
Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. She holds a bachelors degree
in arts. Mrs. Agarwal has more than 7 years of experience in the retail industry. She has been
associated with accounts department of VRPL.
Mr. Surendra Kumar Agarwal, 46 years, is an executive Director of VRPL. He holds a
bachelors degree in commerce. Mr. Agarwal has more than 17 years of experience in the retail
industry. He has been associated with store development and management at various locations of
VRPL.
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Mr. Bharat Jain, 45 years, is an independent Director of VRPL. He holds bachelors degree in
commerce. Mr. Jain is engaged in the business of leather garments and accessories and has more
than 23 years of work experience. Mr. Jain joined VRPL Board on May 8, 2006.
Mr. RakeshAggarwal, 44 years, is an independent Director of VRPL. He holds a masters
degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding
industry has more than 20 years of work experience. Mr. Aggarwal joined VRPL Board on
October 31, 2006.
OUR PROMOTERS AND GROUP COMPANIES
Our Promoters
The following individuals are the Promoters of our Company:
a). Mr. Ram Chandra Agarwal;
b). Mrs. Uma Agarwal; and
c). Mr. Surendra Kumar Agarwal.
The following companies are the Promoters of our Company:
a). Unicon Marketing Private Limited;
b). Ricon Commodities Private Limited; and
c). Vishal Water World Private Limited.
In addition, the following HUFs are the Promoters of our Company:
a). Mr. Ram Chandra Agarwal (HUF)
Name of Shareholders & Number of Shares % of shareholding
1. Unicon Marketing Private Limited
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2. Ricon Commodities Private Limited
3. Mr. Ram Chandra Agarwal
4. Mrs. Uma Agarwal
Acquisition of Business from M/s Vishal Garments and M/s The Vishal Garments
Vide a business purchase agreement dated November 23, 2001 executed betiten their Company
and Mr. Ram Chandra Agarwal (carrying on proprietorship business in the name of M/s The
Vishal Garments) and Mrs. Uma Agarwal(carrying on proprietorship business in the name of
M/s Vishal Garments), it acquired the business of M/s The Vishal Garments and M/s Vishal
Garments, and the said businesses tire transferred to their Company as a going concern with
effect from December 15, 2001.
Acquisition of manufacturing unit from M/s Vishal Fashions Private Limited
Vide a business purchase agreement executed batten their Company and M/s Vishal Fashions
Private Limited; it acquired the business of manufacturing of readymade garments as a going
concern with effect from March 31, 2003. Thier Company itnt into backward integration by
acquiring a manufacturing unit for readymade garments.
Acquisition of manufacturing unit from M/s Vishal Apparels
Vide a business purchase agreement dated March 31, 2003 executed batten their Company and
Mr. Ram Chandra Agarwal (HUF) (carrying on its business in proprietorship in the name of M/s
Vishal Apparels), it acquired the manufacturing unit of M/s Vishal Apparels and the said
manufacturing unit was transferred to their Company as a going concern with effect from March
31, 2003.
Major Events:
A chronology of some key events in the history of the Company is set forth below:
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Year---- Milestone
2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship firm Vishal
Garments & the Vishal Garments opened first store outside Kolkata.
2002-- Opened first Store in Delhi
2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing unit in Gurgaon.
2004--Started thier largest store of at Mathura Road, New Delhi having an area of 80,000 square
feet nominated for the Images Retail Awards 2004
2006--Thier Company was converted into a public limited company 103 implementation of
production and retail module of SAP Broadband connectivity with each and every location
Increased thier presence to an aggregate of 17 States.
2007-- Increase in number of stores to 50 spread across in 18 States.
VRPLs BUSINESS:-
VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL acquired
the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels.
Subsequently, with evolution of retail industry in India and change in consumer aspirations,
VRPL diversified their portfolio of offerings to include other retail goods. Currently, VRPL sell
ready-made apparels and a wide range of household merchandise and other consumer goods
such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, home
furnishing, beverages, drinks, gift and novelties.
VRPL follow the concept of value retail in India. In other words, VRPLs business approach is
to sell quality goods at reasonable prices by either manufacturing themselves or directly
procuring from manufacturers (primarily from small and medium size vendors and
manufacturers). VRPL endeavor to facilitate one-stop-shop convenience for their customers and
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to cater to the needs of the entire family. VRPL believe this concept has helped them grow to
their current size within a short time frame of 8 years.
In order to reduce costs and take advantage of economies of scale VRPL have embarked on
backward integration of their products. VRPLs apparel manufacturing plant is located at
Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up seven regional
distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi.
Further, VRPL have focused on developing a cost and time efficient distribution and logistics
network, which currently comprises seven distribution centers and a fleet of trucks for
transportation.
VRPL achieved total sales of Rs. 1005.31 cr for fiscal 2008, as opposed to a turnover of
Rs.602.65 cr for fiscal 2007 and Rs. 288.46 million for fiscal 2006. During the same period
VRPLs profit after tax was Rs. 40.64 cr, Rs.25.07 cr and Rs. 12.39 cr, respectively.
VRPL Business Processes:-
VRPLs business process can be summarized as below:
Establishment of Stores:
Selection of locationIn selecting location for a new store, VRPL start by identifying the city/town. VRPL target
primarily cities/towns which may be classified as Tier II or Tier III cities. In this regard, an
analysis of the demography, literacy levels, nature of occupation and income levels. Within a
city/town, VRPL target locations with good infrastructural facilities such as easy accessibility,
provision for water, electricity, parking, security and other basic amenities. VRPL prefer to
locate their stores in areas where real estate is available at reasonable prices. The efforts of
VRPLs retail business are targeted towards families having total income which can be classified
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under the lower middle and middle income groups. Accordingly, VRPL plan their strategy
to search for areas within cities where such customers are domiciled in large numbers and make
efforts to locate themselves within the reach of such customers.
VRPL believe that adoption of standard formats for their stores has led to their brand
establishment and identification among their customers and will increase their base of loyal
customers. In pursuance of this, they have adopted standard parameters for store planning and
establishment. For ensuring standardized formatsof their stores, VRPL consider various factors,
such as internal and external dcor and colour schemes, allocation of store space, stock mix and
pricing and accounting methods.
InsuranceVRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz, Royal
Sundaram and IFFCO-TOKIO for their existing stores, distribution centers, manufacturing
facilities and trucks. VRPL insurance policies include comprehensive coverage for electronic
equipment, fire and special perils and burglary. Further, VRPL has filed a claim of Rs. 22.50
million on account of fire in their store at Meerut as on July 7, 2006. In this regard, they have
received Rs. 7.50 million as an interim payment.
FactoriesVRPLs existing manufacturing facilities are located at Plot No. 224, Phase 1 UdyogVihar,
Gurgaon, for which they have leasehold interest until May 4, 2009. In addition, VRPL have
recently acquired freehold interest in relation to a land admeasuring 7.24 acres in Dehradun,
Uttaranchal, where they are exploring the possibilities for establishment of another
manufacturing facility.
Other PropertiesVRPL have recently acquired freehold interest in relation to a land admeasuring 82,830 square
feet in Hubli, Dharwad.
Merchandise PlanningVRPLs merchandise planning is based on the concept of category management rather than
traditional brand management practices.
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Apparels and Non Apparels
Under category management for, say, apparels, VRPL create and cater to products across length
and breadth of a category at different price points, fabrics, designs, shapes, seasons, colors and
sizes. VRPL formulate annual merchandising plan for each division of merchandise taking into
consideration factors such as past sales data, regional customer tastes and preferences, number of
stores (established and proposed), likely fashion and trends, in-house production resources,
vendor management and price. Each division is further divided into major categories (for
instance, mens apparel as a division is further divided into three major categories, namely,
upper, lowers and sports and ethnic wear). These major categories are in turn segregated into
various subcategories. For example, mens upper as a major category would be further divided
into several sub-categories such as formal shirts, casual shirts, party wear etc. Each sub-category
consists of pre-defined SKUs, which are classified on the basis of price point, brand, style,
pattern and size.
VRPL draw annual sales projections for different SKUs and, accordingly, ascertain their
sourcing requirements. Based on such information and lead time estimates for supplies, purchase
orders with delivery schedules are issued. The inventory position for each SKU is reviewed
fortnightly taking into account the actual sales and variations from the budgeted plans. Regularvisits to the stores are made by the category merchandising team to identify the slow-moving-
SKUs and explore the options to expeditiously dispose of them.
For certain non apparel categories, their merchandise planning and scheduling also depends on
introduction of new products and schemes by the vendors. For instance, if a branded home
appliance manufacturer replaces a product with a new version, then their planning for the
product would need to be reviewed based onthe acceptability of the new version.
In-house Manufacturing
VRPL benefit from backward integration and in-house manufacturing of part of the apparel
products sold in their stores. Through their manufacturing capabilities, VRPL is able to attain
relative independence from intermediaries with a competitive advantage in terms of value and
cost. VRPL use their manufacturing strengths to focus on enhancing product knowledge and
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their experiences from manufacturing enable them to negotiate better terms from the vendors
and job workers.
VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The manufacturing
plant is well-equipped with fully automatic machines for fusing, buttoning, embroidery and welt
pocket-making operations. The factory has a capacity to manufacture 5,000 pieces per day. The
plant was commissioned in 2004 and achieved a capacity utilization of 80%. It has 450 machines
and is operated by 500 workers. Further, VRPL are exploring the possibilities for establishment
of another manufacturing facility, for the purposes of which they have acquired certain portions
of land admeasuring 7.24 acres in Dehradun, Uttaranchal.
In addition to in-house manufacturing, they have outsourced some parts of the manufacturing to
job workers who work in their factory premises. VRPL undertake quality control measures by
way of random sampling to ensure the pre-determined quality standards are met. To verify that
the quantity of supplies is as per the order, they undertake count-check for every receipt of the
goods.
VRPLs manufacturing team works closely with their design team to understand trends, develop
products, value engineer and finally create season wise collectionthat cater to regional tastes.
Purchasing
Purchasing or vendor management assumes critical importance in retail business where one has
to deal with multiple products. VRPL have in place a vendor management system, under which
they identify vendors all over the country and overseas and seek to develop alliances and
arrangements with them. They regularly interact with the vendors and share information such
that the vendors remain familiar with their goals and targets. It has been their strategy to procure
goods from small and medium sized vendors and manufacturers, which they believe has led to
reduction in the cost of goods they sell and increase in their profitability.
Upon ascertaining the procurements needs based on each SKU, VRPL explore the various
options for sourcing the products. They continuously strive to procure goods from the place of
origin to reduce the costs and control the quality. For identifying the vendors, VRPL assess the
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various possible options on factors such as capacity, credibility in the market, quality awareness
and experience.
After identifying the vendors for the goods, VRPL place purchase orders based on their SKU-
wise plan, estimated lead time of each vendor and quantity to be procured from each vendor.
VRPL follow a policy of payment on delivery to negotiate better prices with the vendors and in
certain cases they also release payments in advance. To ensure quality of supplies, VRPL check
quality by way of random sampling at the time of receipt of the goods. To verify that the
quantity of supplies is as ordered, they undertake count-check for every receipt of the goods. For
FMCG products, VRPL procure from large as well as small and medium size
Manufacturers. For procurement from the large manufacturers or their distributors,
They endeavor to enter into formal arrangements for supply of products to all
VRPL stores, such that they are able to derive fixed margins from sales of such products,
irrespective of the locations. Under these agreements, they benefit from special discretionary
discounts and offers directly from the manufacturers or their distributors.
VISHAL Apparels Brand
Vishal Mega Mart is one of Indias fastest growing retail chains.. The
chain currently has 183 company stores in 24 states / 110 cities in India. The Vishal brand is
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known for great modern style for men, women and children. Vishal offers high level fashion
styling. Since 1986, our name has been synonymous with quality, value and fashion integrity.
We offer an unparalleled collection of clothes for the entire family. Each garment is hand
selected for quality and contemporary styling. Vishal manufactures majority of its own
garments and out sources some under its direct quality supervision. This enables us to offer the
lowest possible and most reasonable prices.
Our goal is to provide a range of fashion wear to suit every pocket. Our product mix represents
the most current fashion trends in tops, bottoms, formals and accessories for men, women and
kids. Our courteous staff will ensure that consumers get a perfect fit.
Popular Brands are:
Zeppelin : Mens Shirts & Trousers Fizzy Babe : Ladies & Kids Girls
Kitaan Studio : Mens Shirts & Trousers Jasmine : Ladies & Kids Girls
Blues & Khakis : Mens Trousers Zero Degree : Kids Boys
Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts
Chlorine : Mens Shirts Massa Bay :Mens Trousers
&Bermudas
Fume :Mens Shirts, T-Shirts,
UnderGarments.
STORES
ANDHRA PRADESH (3 Stores)
ASSAM (6 Stores)
BIHAR (6 Stores)
CHATTISGARH (1 Store)
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DELHI (12 Stores)
GOA (1 Store)
GUJRAT (4 Stores)
HARYANA (12 Stores)
HIMACHAL PARDESH (4 Stores)
JAMMU & KASHMIR (4 Stores)
JHARKHAND (6 Stores)
KARNATAKA (2 Stores)
MADHYA PRADESH (9 Stores)
MAHARASHTRA (10 Stores)
MEGHALYA (1 Store)
NAGALAND (1 Store)
ORISSA (7 Stores)
PUNJAB (15 Stores)
TAMIL NADU ( 1 Store)
UTTAR PRADESH (34 Stores)
UTTARAKHAND (6 Stores)
WEST BENGAL (5 Stores)
KERLA(1 Store)
Role of Supply Chain in Indian Organized Retail
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The role of supply chain in Indian organized retail is very significant for on it depends the
growth of this sector. The Indian Supply Chain Council have been formed to explore thechallenges that a retailer faces and to find possible solutions for India.
The role of supply chain in the organized retail sector in India should be a shelf-
centric partnership between the retailer and the manufacture for this will create supply chains
that are loss free. This will also give rise to top and bottom line growth. In the organized
retail sector in India the presence of fresh produce (vegetables and fruits) is very small. This
is so for the nature of supply chain is very fragmented. This shows the important role of
supply chain in the organized retail sector in India. In the organized retail market in India the
role of supply chain is very important for the Indian customer demands at affordable prices a
variety of product mix. It is the supply chain that ensures to the customer in all the various
offerings that a company decide for its customers, be it cost, service, or the quickness in
responding to ever changing tastes of the customer. The infrastructure in India in terms of
road, rail, and air links are not sufficient. And so warehousing plays a major role as an aspect
of supply chain operations. To overcome these problems, the Indian retailer is trying to
reduce trans portion costs and is investing in logistics through partnership or directly. TheIndian organized retail sector is growing so the role of supply chain becomes all the more
important. It should become all the more responsive and adaptive to customers demand.
There is also need for the supply chain to be more cost efficient and collaborative to win the
immense competition in this sector. The role of supply chain in Indian organized retail has
expanded over the years with the boom in this industry. The growth of the Indian retail
industry to a large extent depends on supply chain, so efforts must be made by the Indian
retailers to maintain it properly.
In vishal mega mart I learn three things.
1- SUPPLY OF GOODS
2- SUPPLY OF INFORMATION
3- SUPPLY OF CASH
SUPPLY OF GOODS- Thereare manysupplier toVishal mega mart. They have many
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distributers, dealers. Vishal have own 200 vehicles. AndVishal use always own
vehicles. AndVishal have contract with D.T.C Transport company. Vishal have two
types of business.
1-B2C Means Business To Customer
2-B2B Means Business To Business
Vishal always manufacture mostly product. And sell this product in their retail
store.SUPPLY OF INFORMATION- In Vishal mega mart used to SAP software to
supply of information. Through this technology Vishal exchange the information. If is
there any problem regarding product, price, damages they send mail through this
technology.
SUPPLY OF CASH- In supply of cash customer buy the product through cash. Means
customer pay to retailer and retailer pay to distributer then after distributer pay to
manufacturer and at last manufacturer pay to supplier. That is the supply of cash.
Apparel Manufacture
The basic raw materials required for the manufacturing process of apparels includes fabrics
and accessories. VRPL merchandising teams source fabrics from local manufacturers in India
depending upon their production plan. VRPL also source fabrics from the place of origin.
VRPL source various other components and accessories from vendors in various parts of the
country and also import them from China.
Inventory Management, Distribution Network and Logistics
VRPLs distribution network and logistics encompasses all activities to ensure that goods are
dispatched in right quantities and at right time to reach stores with sufficient time in hand to
promptly cater to customer demands and optimization of inventory position.
They have built a system to monitor the inventory position on a real-time basis at each store,
under which a stock requisition or delivery order is generated when pre-determined stock or
re-order levels are reached. The re-order levels for stores are determined based on factors
such as display levels, lead time for replenishment and average daily sales. VRPL review
these re-order levels on continuous basis to factor in variances in demand based on seasons,
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trends and promotional schemes.
VRPL have seven distribution centers over approximately 385,033 square feet. These
distribution centers are located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and
Mahipalpur (New Delhi). VRPL have clearly demarcated the stores which will be serviced by
each distribution center. The reorder levels for distribution centers are ascertained on the
basis of factors like average daily sales of all the stores services, lead time for replenishment
and buffer stock, which caters to both the existing and proposed stores to be fed. As for the
stores, they regularly review these re-order levels.
VRPLs distribution centers and stores are connected through company-wide virtual network
connection through broadband which helps to efficiently manage their network of stores and
distribution centers throughout the country.
They primarily utilize their own vehicles to transport the inventory to their stores from the
distribution centers. In addition, VRPL use the services of logistic solution providers
including low cost transport service providers in order to deliver products on time to VRPL
stores and optimize transportation costs. Distribution centers operations have been
streamlined through the standardization of racking system, layouts and implementation of
automatic replenishment system.
Under arrangements with some of their merchandise manufacturers, they receive payment on
account of display of their products.
LITRATURE REVIEW
1- RETAIL NEEDS INDUSTRY STATUS MORE
The positive impact of FDI on agriculture, supply chain management, infrastructure, food
processing, and so on, is given as a fall out of retaildevelopment. However, these also happen to
be independent business segments and development of these cannot be the only justification for
retail FDI. Inthat context, why bother about FDI at all? The obvious expectations from FDI are
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that it leads to investments which mean funds, technology and processes. If retail is defined as
an industry and given sops, such as how IT was given or for that matter so many other
industrieshave been given, funding would not be an issue. Many bottlenecks faced by retailers
would ease. Most importantly, this would not benefit just the large corporate chains but also
smaller retailers.
2- SATISFYING THE RETAIL CUSTOMER
Retailers are trying to build more customer-centric offerings and are learning to use technology
to improve merchandising and pricing. The new emphasis has served to reposition retail IT
executives from back-office order takers to business strategists, intimately aware of how
technology can improve the customer experience and drive bottom-line growth. CrutchfieldCorp recently revamped its Web site and call centers to accommodate Spanish-speaking
customers. Retailers are also using technology tools in supply-chain and replenishment
management. RFID has been keyin supply-chain management with Wal-Mart's mandate to have
all suppliers tag pallets and cases by the end of this year. Tesco PLC recently piloted a project to
tag high-end DVDs with RFID. With the use of RFID tagging on DVDs, Tesco's pilot projects
were showing a 50% improvement in stock availability.
3- Supply chains enter'Platform' era
These are exciting times for retail supply chain managers. They finally are starting to see real
progress against the once-competing goals of high inventory availability and better financial
returns. Thanks to sophisticated technology solutions, retailers can reduce stock levels and still
keep customers happy. Supply chain managers no longer have to make decisions about
inventory, orders, transportation and distribution in isolation without considering data,
workflows and inputs from each discipline in the supply chain. Platform Thinking replaces silo
thinking by blending insight and execution capabilities across supply chains and ecosystems to
deliver advanced levels of visibility, agility and customer responsiveness. Platform Thinking
also closes the communication gap between the transportation department and warehouse
management.
4- In the Store or at Your Door
The consumer packaged goods (CPG) industry is large and very diverse. According to
Investopedia, the consumer packaged goods industry in North America is valued at
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approximately $2 trillion. CPG products are sold through multiple sales channels and change
rapidly based on consumer preferences and economic conditions. Many CPG manufacturers
partner with third-party logistics companies (3PL) to help them manage the complexities of their
supply chain. One bright spot in the retailmarketplace continues to be e-commerce or the direct-
to-consumer channel. Many CPG companies offer products directly to consumers and many
others are planning to augment their store sales with e-commerce. As the CPG business
continues to thrive and change, manufacturers will increasingly look to logistics providers to
help them adapt, drive supply chain improvements and maintain profitability. Supply
chainmanagement solutions providers will need to identify trends and provide strategic insight to
CPG manufacturers in order to remain their trusted partners.
5- Managing Risk
Characteristic of the classic risks associated with putting all your eggs in one basket, retailers
should consider the repercussions if a vendor fails to deliver seasonal product on time, and there
are no other vendors in play to cover the slack. One way that retailers have addressed risk
management and exceptions management inthesupply chain is to increase the virtual
surveillance and communications with global trading partners. Many new companies signed up
for the software-as-a-service model, and existing participants increased their usage. Charming
Shoppes, the Bensalem, PA-based specialty apparel retailer, was one longtime retail customer of
the GT Nexus import operating platform that not only renewed but increased its commitment to
use the service in 2009.
6- Strong Supply Chain Vital to a Retailer's Success
These days, retailers can't get by on just one level of transportation service -- nor should they be
expected to. They want and need a menu of services to choose from, and everyone in the
supporting supply chain must step up to provide innovative choices. Whether it is sourcing
product or turning inventory, making the most of supplychain capabilities and managing
logistics is important to any retailer's bottom line. To meet these challenges, transportation and
logistics companies should provide a variety of services, from third-party consolidation in Asia
to distribution solutions in Europe. The most critical requirement in the retail industry, of course,
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is on-time delivery. Consistent transportation service, without fail, is the requirement. For
logistics to run smoothly, communication and tracking are also required.
7- Retailers turning to SCM
According to the Retail Industry Leaders Association and Auburn University's 2009 State of the
Retail SupplyChain study, leading retailers are turning to their supply chains to improve
inventory management, control costs and maintain first-rate customer service. The recently
released report highlights the increasingly important role of supply chain management in the
current retail environment and brings together executives from more than 40 of the nation's
leading retailers to examine the year's current trends, best practices and key issues. Steve
Banker, service director for supply chain management with Boston-based ARC Advisory Group,discusses the study.
8- Five Keys toSupply Chain Success in India
As India's economy continues to expand (it grew at a rate of 6.8% in 2008, and is expected to
dip only slightly to 5.5% in 2009), global manufacturers are adjusting their supply chain
operations by focusing on balancing costs and services. To keep pace with India's growth rate,
companies have been focused on building production capabilities, distribution networks and
retail outlets, resulting incomplex supplychains with long lead times, explains Stephen
McNulty, regional vice president, Asia Pacific, with supply chain solutions provider JDA
Software. McNulty offers the following five strategies for managing demand in India's
emerging market: 1. ensure a clear understanding of local principles, customs and barriers, 2.
establish constant communication, 3. develop comprehensive procedures and processes, 4.
ensure the quality of input information, and 5. identify and integrate the right professionals and
insist on teamwork.
OBJECTIVE OF STUDY
1- To know the current supplier.
2- To understand criteria of supplier selection.
3- To understand the key area of company through which it good supplier relation to have the
strong supply chain.
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4- To recommended the strategic for future to increase the supplier satisfaction and to have the
strong supply chain.
5- To know the supply of information.
RESEARCHMETHODOLOGY
The objective of the study was accomplished by conducting a systematic market research.
Market research is the systematic design, collecting, analysis, and reporting of data and findings
that are relevant to different marketing situations facing the company.
COLLECTION OF DATAPrimary data and secondary data. Being a firm in the retail sector, data gathering involved the
usage of both primary and secondary data though there was an extensive usage of primary data.
Well-structured questionnaires were prepared for the dealers. The questionnaire contained both
open ended and close ended questions. The main objective was to get an insight into how people
think rather than measuring how many dealers think in a particular way.
Secondary data- collected from various journals, and websites.
A sample of 20 dealers is selected for this survey. Primary data wereCollected by asking questionnaires by directly interacting with the dealers.
Which retail store you are dealing?
RETAIL
STORE
VISHAL BIG
BAZZAR
EASY
DAY
V MART ALL OF
THESE
ANY
OTHER
RESPONDENT 8 6 3 2 1 0
INTERPRETATION- According to my survey I found that this dealer dealing the Vishal store.
You can see here 40% dealing to the Vishal mega mart.it is show that Vishal position is good in
the market.
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What is your pattern of sell to retail stores?
PERIOD RESPONDENT
WEKKLY 12
MONTHLY 6
DAILY 0
ANY OTHER 2
INTERPRETATION- According to marketing research I found that mostly dealer do the
transaction on weekly basis. You can say it is a type of credit basis.it is good for business.
How do you accept the payment?
RECEIPT CASH CHEQUE BOTH ANY OTHER
RESPONDENT 1 15 2 2
INTERPRETATION- According to my survey I found that dealers accept the payment by
cheque. Because payment of cheque show the credit. And without credit you cannot run your
business.
Do you provide discounts to our retail store?
DISCOUNT YES NO
RESPONDENT 13 7
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Interpretation- According to my survey I found that mostly supplier gave to discount to retail
store. Because retailer are buy goods in bulks and they gave payment in a weeks.
FINDINGS AND RECOMMENDATIONS
FINDINGS:
Quite a few factors came in front that can be called as good research findings and
Vishal mega mart need to work upon these for growth.
1. Through the survey i found that most of dealer deal with Vishal mega mart. So we can say
that the position of Vishal mega mart is better than its competitors.
2. Through the survey I found that the goodwill of Vishal mega mart is good. because mostly
business occurred on credit.
3. Through the survey I found that Vishal sell is good. Because Vishal received goods in every
week.
4. Through survey we found that Vishal is big retailer and its consumption is more so they
provided satisfaction discount
RECOMMENDATIONS:
1. I found that display of product is not good.so Vishal should change the display system.
2.I found that the D.C of Vishal is very small. So Vishal should increase the space to the D.C.
3. Vishal should do some initiative and innovative work because there are many competitors
are in the market and all are doing same.
4. Dealers want that there at least one meeting in a year with us. All the dealers can sit together
and can discuss together. So VISHAL should arrange the meeting with dealers. From which to
get right knowledge about customers and market.
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5. Godown should be available near to the target market. It will leads to help in sudden orders
and will also help in timely delivery.
CONCLUSION
During my study of supply chain management of Vishal mega mart I have found that Vishal
mega mart using different kind of supply chain which are different than other retailer. Vishal
mega has its own bigger ware house where its keep inventories means all the supplied goods by
the different supplier are kept their. Then the goods are supply to Vishal mega mart store their
necessities. I think that this kind of supply chain is very good for store. Because by having this
kind of supply chain. They delivered the goods their store in time. Because they have delivered
supply chain in two parts. That is half of supply chain is completed by the supplier and half of
supply chain completed by store.
References
http://proquest.umi.com/pqdweb?did=2076017851&sid=1&Fmt=3&clientId=129893&RQT=309&VName=PQD
http://proquest.umi.com/pqdweb?did=987848331&sid=3&Fmt=2&clientId=129893&RQT=309&VName=PQD
http://proquest.umi.com/pqdweb?
did=2064893561&sid=3&Fmt=2&clientId=129893&RQT=309&VName=PQD
http://proquest.umi.com/pqdweb?
did=2032398871&sid=3&Fmt=3&clientId=129893&RQT=309&VName=PQD
http://proquest.umi.com/pqdweb?did=1982216551&sid=3&Fmt=3&clientId=129893&RQT=309&VName=PQD
www.vrpl.com www.retailabout.com
Questionnaire
For
Dealer/Agent
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Name of the Dealer:
Age:
Gender:
Address:
Mobile no.:
Q1. What is the nature of your Business?
(a)Domestic
Yes No
If Yes, then
Wholesaler Retailer
Both
(B) Exporter
Yes No
(c) Both Domestic and Exporter
Yes No
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Q 2. Which retail store you are dealing?Vishal mega mart Big Bazaar
V Mart Easy Day
All of these Any
other
Q 3. What is your pattern of sell to retail stores?
Daily Weekly
Monthly Any other
Q 4.how do you accept the payment?
CASH
CRIDIT CARD
CHECK
All of these
Any others
Q 5.Which kind of product do you sale?
C.D.IT
F.M.C.G
LIFE STYLE
All of these
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Any others
Q 6. For which segment do you sale the product?
Ladies
Gents
Kids
Q 7.What is the main factor that inspires you to supply to our
Retail store?
Competitive advantage Good relation
Brand imageour services
Q 8. Where is your warehouse?
Jalandhar 2 Ludhi
Phagwara Amritsar
Any other
Q9. What price ranges of the product are most sold? (Current
price with date)
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.
Q 10 . Do you provide discounts to our retail store?
YES .
NO
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