champs d'interventions de Kurt Salmon - missions et projets Reliance Retail Group India

1. Reliance Case Studies
2008

2. The Reliance Experience - Overview
Strategy Concept Business Architecture Team PMO
Validation Review Design of Operational Model Store Chain Implementation
Strategy Concept Business Architecture Team PMO
Validation Review Design of Operational Model Store Chain Implementation
 Market sizing and projections  Network planning  Complete, integrated retail  Full Programme Management
 Market segmentation  Real-estate requirements process maps design : “plan, buy, Office concept implementation
 Market sizing and projections  Network planning  Complete, integrated retail  Full Programme Management
 Consumer trends  Customer experience concept, move, sell” based on world best  Standard store / DC opening
 Market segmentation  Real-estate requirements process maps design : “plan, buy, Office concept implementation
 Consumption pattern analysis circulation plans, services practices PERT charts including duration,
 Consumer trends  Customer experience concept, move, sell” based on world best  Standard store / DC opening
 Geographic analysis  Category adjacencies and space  Documentation of standard lead-time and dependencies
 Consumption pattern analysis circulation plans, services practices PERT charts including duration,
 Competitor assessment allocation operating procedures by format  PERT / Critical path analysis
 Geographic analysis  Category adjacencies and space  Documentation of standard lead-time and dependencies
 Target format identification  Customer services requirements  Definition of roles, responsibilities  New Store Opening war room
 Competitor assessment allocation operating procedures by format  PERT / Critical path analysis
 Required investment  Assistance to planogram design  Software configuration design and implementation
 Target format identification  Customer services requirements  Definition of roles, responsibilities  New Store Opening war room
 Roll-out planning  Store organization design requirements  Design and implementation of
 Required investment  Assistance to planogram design  Software configuration design and implementation
 Budgeting  Training plan & requirements  Complete KPI and dashboard Roll-out monitoring tool
 Roll-out planning  Store organization design requirements  Design and implementation of
design, and implementation
 Budgeting  Training plan & requirements  Complete KPI and dashboard Roll-out monitoring tool
design, and implementation
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3. ** CONFIDENTIAL - REMOVE THIS LABEL BEFORE USING ** / CLIENT NAME = Reliance
Building a retail chain for a large Indian business
conglomerate
KSA leads a transformational retail implementation project, helping a large Indian business
group build a retail chain
Background Large Indian conglomerate without any prior experience in retail wished to build a several thousand
store retail chain on a green field basis, with planned capital outlays of approximately US $6 Billion
Challenge  What processes and operational practices should be in place for the pilot and long term retail
business?
 How will the business effectively manage the roll-out of thousands of stores across over a dozen
formats and hundreds of cities?
 What organizational, systems and other key capabilities need to be established to drive forward
the retail business for the long term?
 How does the business develop a strong presence in India and stay ready to compete against
the large, established foreign entrants likely to move into India in the near term?
Solution  Spearheaded launch planning, including launch strategy development, supply chain
development, vendor on-boarding/ product sourcing, and store design and construction:
 Identify target cities for stores, based on consumption patterns and population trends
 Help plan store launch sequence, by city and store format
 Help plan national distribution strategy
 Helping to lead the development of business strategies, processes, organization structures and
systems requirements for the business, across all core functions (planning, sourcing, distribution,
store operations, consumer insights) and core store formats
Results  Roll-out is broadly on course, with client having opened 350+ stores in less than a year, in 5
different formats and with hundreds more stores in various stages of pre-launch planning /
development
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4. ** CONFIDENTIAL - REMOVE THIS LABEL BEFORE USING ** / CLIENT NAME = Reliance Mart
Management of New Store Opening for a large hypermarket
Chain
KSA assists a major Indian hypermarket chain in kicking off its operations, by setting up the
product flow infrastructure and managing the first New Store Opening project
Background Our client is creating a new hypermarket chain in India, with an ambitious development plan of
more than 100 new stores a year and a focus on large, multi-category format. The format will start
with a 180,000 sqft. Hypermarket, the largest of its kind in India.
The client has asked KSA to assist them in the opening of this first store, i.e. in creating and
launching the product flows and in taking in charge the project management of the store opening.
Challenge  How to anticipate (and solve) the supply chain bottle necks in a totally new chain?
 How to coordinate and plan the product deliveries of around 100,000 SKU of 23 different
verticals (from Books & CDs to Fruits & Veg.) so that the store stock can be filled in 5 weeks?
 How to organise the product flows in the store to maximise the efficiency of NSO operations
(from goods receive to stacking and price labeling), and minimise shrink during NSO?
 What are the risk associated to each category and the back up plans ?
 How to make sure product availability on shelf is still good after 3 weeks?
Solution  Carry out a risk analysis with Merchandising & Supply Chain team 2 months before opening, and
identify back-up plans
 Design and implement the circulation of goods and people, from DC to sales floor and the
delivery plan. Identify and secure points of high risk of shrinkage
 Design and operate an NSO war room, including a category tracker to follow the progress of the
store merchandising, from validation of assortments to shelf presence and scan test.
 Carry out weekly audits of the logistics flow to identify bottle necks and solve them quickly
Results  Supply chain implemented in 2 months, from the first DC delivery to the store opening
 After an initial ramp up phase, more than 60,000 SKUs delivered and stacked in 3 weeks
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5. ** CONFIDENTIAL - REMOVE THIS LABEL BEFORE USING ** / CLIENT NAME = Reliance D&L
Programme Management for a Distribution Network roll-out
KSA assists a large retail group in managing the programme of deployment of its logistics
infrastructure, including more than 80 National DCs and 100+ temporary platforms
Background A large retail group is planning a several thousand store roll out in India, with a strategic imperative
to keep all operations in house, from source to shelf. A dedicated distribution network, of more than
80 national DCs is planned to support the stores supply chain in the middle-term, where as a
network of smaller regional temporary platforms are expected to cover the short term imperative
and the store opening.
KSA was in charge of the programme management design and kick off in the DC network roll out,
ie. assistance in network planning, progress tracking and reporting.
Challenge  How to manage priority changes when a group of store openings is delayed?
 What is the impact on local transport regulations (octroi) on the transportation network & cost?
 What are the process requirements for each store format in order preparation and delivery and
can we serve all formats from the same facility?
 What are the site requirements for a temporary DC ? (balance to be found between speed of
implementation and quality of site – i.e. of service)
Solution  Designed and implemented a PMO concept with a standard DC opening project plan (from site
selection to operations kick-off) applied consistently to all sites
 Implemented progress monitoring processes, in order to synchronise the DC readiness with the
rest of the product value chain (assortment definition, supplier selection, orders and first
deliveries) and the preparation of other CAPEX expenditure (e.g. IT, safety, …)
 Designed site specification framework and regularly carried out site audits to control the quality
of the site, its accessibility and the progress of the construction work
Results  More than 100 DC construction projects managed in parallel.
 100% of temporary DC ready at least 15 days before the first planned initial delivery
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6. ** CONFIDENTIAL - REMOVE THIS LABEL BEFORE USING ** / CLIENT NAME = Reliance
RFID strategy and pilot for a major diversified Indian retail
group
KSA assists a major retail group in the design of the RFID strategy and the launch of the first
pilots
Background A large Indian conglomerate wants to build a retail chain from scratch, immediately based on
western best practices. RFID is seen as a revolutionary technology which the client want to
introduce very early in the roll-out to kick off their supply chain based on the latest available
techniques.
The objective of the project is to kick-off the RFID initiative, define a realistic execution plan and
requirements and size investments and benefits
Challenge  What technology can we use in India ? – based on vendors strategy, Indian national and state
regulations, and performance in the country’s weather conditions
 What benefits is achievable vs. the use of the barcode? Where does it make sense to go for
RFID whereas using barcodes properly would give most of the benefits with a portion of the
cost?
 How do we ensure suppliers’ involvement in the program whereas the development of organised
retail itself is already a major change for them?
Solution  Select and design a limited number of targeted, promising RFID applications
 Define a phased plan of RFID pilots allowing to gradually gain technical knowledge while
investing carefully
 Launch and manage these pilots in test distribution centres and stores
 Design an RFID Centre Of Excellence – a testing and training platform for employees and
suppliers to facilitate adoption and further roll-out of the technology
Results  2 RFID pilots launched in the first year of operation.
 Partnerships in place with vendors to facilitate the development of the technology
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7. ** CONFIDENTIAL - REMOVE THIS LABEL BEFORE USING ** / CLIENT NAME = Reliance
RFID strategy and pilot for a major diversified Indian retail
group
KSA assists a major retail group in the design of the RFID strategy and the launch of the first
pilots
Background A large Indian conglomerate wants to build a retail chain from scratch, immediately based on
western best practices. RFID is seen as a revolutionary technology which the client want to
introduce very early in the roll-out to kick off their supply chain based on the latest available
techniques.
The objective of the project is to kick-off the RFID initiative, define a realistic execution plan and
requirements and size investments and benefits
Challenge  What technology can we use in India ? – based on vendors strategy, Indian national and state
regulations, and performance in the country’s weather conditions
 What benefits is achievable vs. the use of the barcode? Where does it make sense to go for
RFID whereas using barcodes properly would give most of the benefits with a portion of the
cost?
 How do we ensure suppliers’ involvement in the program whereas the development of organised
retail itself is already a major change for them?
Solution  Select and design a limited number of targeted, promising RFID applications
 Define a phased plan of RFID pilots allowing to gradually gain technical knowledge while
investing carefully
 Launch and manage these pilots in test distribution centres and stores
 Design an RFID Centre Of Excellence – a testing and training platform for employees and
suppliers to facilitate adoption and further roll-out of the technology
Results  2 RFID pilots launched in the first year of operation.
 Partnerships in place with vendors to facilitate the development of the technology
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