4. Module 1:Supply Chain Management Cycle I Cycle II Cycle III Cycle IV Customer Distributor Manufacturer Supplier Retailer Procurement Customer Order Manufacturing Replenishment

5. Objective of SCM in Retail

6. Example of Supply Chain in Retail Information Flow Raw Materials RETAILER FACTORY DISTRIBUTOR WHOLE SELLER SUPPLIER Finished Goods

11. Module 1:Supply Chain Management Concept of supply chain could be thought of as a loop SCM starts with the customer and ends with the customer Customer could be an internal customer or an external customer

12. Module 1:Supply Chain Management A push-based SCM takes longer to react to the changing market place In a push-based supply chain, production decisions are usually based on long-term forecasts In push-based strategies, SCM experience increased transportation costs, high inventory levels and high manufacturing costs In a pull-based supply chain, manufacturing is demand driven so that it is coordinated with actual external customer demand rather than a forecast Push View of SCM Pull View of SCM Lead-time reduction occurs as the variabilities are better monitored in pull-based SCM Pull-based systems are often difficult to implement when lead times are so long that it is impractical to react to demand information

14. Conventional Approach Sales & Distribution (Demand) Manufacturing (Capacity) Procurement (Material) C U S T O M E R Optimize to Mfg objectives Optimize to Logistics obj Optimize to Sales & Mktg obj

19. Benefits of Retail Logistics