A Study On Pantaloons Supply Chain Distribution
A Study On Pantaloons Supply Chain Distribution
A Study On Pantaloons Supply Chain Distribution
Prepared by
Submitted To
Tolani Motwane Institute of Management Studies Adipur
PB No.11, Lilashah Kutiya Road, Adipur 370 205 (Kachchh).
Ph: (02836) 261466, 262187 Email: info@tims.ac.in, www.tims.ac.in
Affiliated To
Gujarat Technological University
ACKNOWLEDGEMENT
With immense pleasure, we would like to present this project report for Supply Chain
Management, Distribution and Sales activities in Pantaloons Fashion & Retail Ltd . We take
the opportunity to express our gratitude to all of them who in some or the other way helped us
to accomplish this project. The study cannot be completed without your guidance, assistance,
inspiration and co-operation.
We would also like to thank with a deep sense of gratitude to Prof. Sagar Tanna & Prof.
Maulik Shah to shape our understanding towards the project and support and constant
guidance in organizing our work and giving us valuable inputs in our learning. It was because
of their immense help and support that this project has been duly completed. We also thank
people from Pantaloons for providing the proper knowledge & information for our research
work.
They have always there for us to help and doing away all the difficulties and confusions that
arose during the project period. They also helped us to understand what was actually required
from the project and what was needed to be done.
EXECUTIVE SUMMARY
Here we have undertaken the project at Pantaloons India Pvt.Ltd & divided the project into
two parts i.e.
This project report contains the details regarding how the company works, how supply chain
& distribution affects their businesses, what basic principles they follow, how product order
is placed by keeping view & identifying the customer needs, how they carry out the functions
by using SAP software by properly assessing & evaluating the each and every department.
Data here we have collected by visiting the store and personally interviewing the manager
that how their company operates or functions.
Tools used in sales promotion or what impact or effect has been made through advertising
and marketing strategies and what all challenges the company faces against their competitors
is studied.
Pantaloons pay attention to advertisements & other marketing tactics like organizing
campaign, events, discounts, point tactics to attract customers with vouchers or gifts.
INTRODUCTION
Subject Introduction:- A supply chain is a network of facilities and distribution options that
performs the functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers. Supply chains exist in both service and manufacturing organizations, although the
complexity of the chain may vary greatly from industry to industry and firm to firm. There
are four major decision areas in supply chain management: 1) location, 2) production, 3)
inventory, and 4) transportation (distribution), and there are both strategic and operational
elements in each of these decision areas.
Pantaloons has 130 fashion stores in 40 cities and towns in India. It has retail space of 1.7
million square feet, which is amongst the largest in India.
Pantaloons retails approximately 200 brands which comprises a mix of private labels and
licensed brands in apparel and accessories. Pantaloons brands are aimed at men, women and
children. Brands include Ajile, Chalk, Akkriti, Trishaa, Rangmanch, candies, Honey,
Annabelle, Richard Parker, SF Jeans, Bare Denim, Bare Leisure, Isabel London and JM
Sports etc.
OBJECTIVES OF THE PROJECT
To understand and focus on major factors which strengthen the supply chain
management and distribution of Organized retail markets (Pantaloons).
To study and analyze how the marketing strategies and sales promotion activities
conducted by the selected apparel retail outlet in Gandhidham.
RESEARCH METHODOLOGY
Primary Data:- Such data are mainly concerned with the first hand information. As there
was no specific questionnaire prepared but brief discussions were undertaken with the
personnel as and where required.
Secondary Data:-This data is mainly collected from different types of sources such as:-
Official documents
Journals
Reports
Literature Review:- this article deals with comparison of the marketing systems of
organized and unorganized retailing to assess the feasibility of Organized Retailing as a
strategic choice out of new business opportunities. The phenomenal size of retailing business
in India alongwith high potential has attracted leading Indian and multinational operations
towards retailing and expanding their business portfolio. However the current trend of
aggressive expansion strategy b major organized retailers has created resistance from some
socio-political forces thus raising apprehensions about the future scope of the business.
Literature Review:- Indian retailing set to double in the next three years, with the
emergence of more national retail chains. The optimism about Indian retail is corroborated by
the KPMG in India 2005 Retail Survey. More than 70 percent of our survey respondents
expect to grow in excess of 40 percent per annum in the next three years. Going by the
growth plans of the retailers we met, modern retailing is expected to double in terms of the
number of outlets and amount of retail space in the next three years, with the emergence of
more national retail chains. In such a scenario of rapid growth, the preparedness of Indian
retailers in terms of having appropriate formats, scalable processes, appropriate technology
and relevant organization capability will be crucial to success. The survey explored these
aspects. India would see experimentation by retailers to identify the winning format suited to
different geographies and segments implying multiple formats by retailers. Such
experimentation and identification of an appropriate format for local conditions would
differentiate winners from losers in the Indian retail market of the future.
Literature Review:- this article presents a literature survey on the concept of category
management in retail operations based on the exposition on category management given in
research papers. Category management has gained importance as a result of dynamic changes
in consumer outlook coupled with increasing competition. It helps to ensure better product
planning on the retail shelves so that it can increase profitability and meeting consumer
demands.
6)Title of the paper:- Measuring Service Quality in the Context of Indian Retail
Literature Review:- Author has suggested in their research on Measuring Service Quality
in the Context of Indian Retail that offering service quality in retail is highly imperative for
retailers, as competition is getting stiffer day-by-day and customers are becoming more
demanding and discerning. Creating unique customer experience is essential for retailers to
woo customers and retain them in long run. Hence Retailers should focus on improving
customer service quality by carefully analyzing perception and expectation of customers
towards the store on various dimensions, and taking appropriate actions to improve the
situation.
OVERVIEW OF THE INDUSTRY
Pantaloons stores have an abundance of choices across categories that range from western
to Indian wear, formal to party wear and active wear for men, women and kids. To further
add to the customer's innumerable choices that reflect style, attitude, and comfort,
Pantaloons has extended its horizons to fashion accessories like fragrances, footwear,
handbags, watches, sunglasses and much more.
Comprising a brand portfolio that runs across a wide gamut of styles that spell class. The
Collection includes ready-to-wear western and ethnic apparel for men, women and kids,
Complemented by an exhaustive range of accessories.
The womens section houses the private labels Bare Denim, Bare Leisure, Rig,
Annabelle, Honey, and Agile in western wear, as well as the choicest ethnic wear from
RangManch, Trisha and Akkriti. Popular brands like Lee Cooper, Biba and W are also
available.The private labels for men in western wear include Lombard, Rig, Bare Denim,
and Bare Leisure and JM Sport apart from trendy brands likes Urbana, Scullers, John
Miller, and Indigo Nation.
Kids can choose from private labels like Bare Denim, Bare Leisure, Rig, or indulge in
Exclusive brands like Lee Cooper Juniors, Chalk exclusive, Chirpy Pie & Bare in
addition to
International brands like Barbie and Disney. For the ethnic look, they can opt for
traditional
Wear from Akkriti.
Pantaloons offer much more than just apparel. Customers can shop from an assortment of
Watches from renowned international brands like Tommy Hilfiger, Esprit, Kenneth Cole,
Citizen, Timex, and Titan, among other brands.
Trendy sunglasses from Polaroid, Guess, Police, Scott, I Dee and Allen Solly are also
Available. The accessories and beauty segments display an attractive collection of ladys
Handbags from Lavie, Caprese, Fiorelli and Fastrack. Also available are products from
colour Cosmetic brands such as Bourjois, Chambor, Deborah, Faces, Revlon, Maybelline,
and Lakme, as well as a wide collection of exotic fragrances.
The retailing supply chain, as the majority of the supply chains, consists of a producer, a
wholesaler, a retailer and a consumer. Since the focus of this thesis is limited to the retailing
part of the supply chain, there is no direct need for this particular research to consider the
suppliers role in the chain. This means that the supplier's role in this particular case is, of
course, very important but the retailing and customer orientated concept of this research
moves the chain more towards the customer than backwards. The physical flow of goods,
the cash flow and the information flow follow the traditional flow pattern as already
described in the previous section. The main activities that are related to a retailing supply
chain include picking, packing, warehousing and transporting.
Fashion Retailing Supply Chain In order to understand the function of a fashion retailing
supply chain, it is, firstly, important to describe its special characteristics and, secondly, to
explain how fashion retailing companies form their supply chain management strategy based
on the characteristics of the market they are focused on. Therefore, the main characteristics of
fashion retailing and the main ways and concepts of managing a retailing supply chain are
presented here.
Fashion Retailing - Characteristics Fashion is a term that, when it comes to the economic and
social sciences point of view, it characterizes a very wide range of products and services, the
main characteristic of which is the short life cycle. In this way, fashion creates new markets
where the styles and trends presented are changing very fast with time. These special
conditions that fashion creates in the market affect radically the retailing of fashion products
and, consequently, the whole fashion retailing supply chain.
Short Life Cycles:- The products are designed from the very beginning with a view to
capture the feeling of the consumer during a very specific period of time. This period can
vary from several seasons, months or even weeks.
High Volatility:- The demand for fashion products is very unstable and continuously
changing. This happens due to the fact that consumers demand for these products is
mainly influenced by lifestyle factors, such as the current culture, music waves, films, or
even pop stars. However, this does not mean that there are no stable reference points
when it comes to fashion, but it is important to point out the continuous change that
characterizes it.
Low Predictability:- This factor is strongly connected to the previous one, the high
volatility of demand for fashion products. Due to this continuously changing market
environment, it is rather difficult to predict the exact demand for a specific product during
a specific period of time.
High Impulse Purchasing:- Fashion products are usually bought by the consumers
without any former planning, on the spur of the moment. This is mainly happening
because they create to them the feeling of being fashionable, keeping up with the current
trends and supporting a modern lifestyle.
FINDINGS & ANALYSIS
Supply chain management flows can be divided into three main flows:
The product flow:- The product flow includes the movement of goods from a supplier
to a customer, as well as any customer returns or service needs.
The information flow:- The information flow involves transmitting orders and
updating the status of delivery
The finances flow:- The financial flow consists of credit terms, payment schedules,
and consignment and title ownership arrangements.
Here Pantaloons follows the two main types of SCM software: planning applications
and execution applications.
Planning applications use advanced algorithms to determine the best way to fill an
order.
Execution applications track the physical status of goods, the management of
materials, and financial information involving all parties.
An effective supply chain management system can provide a 360 degree feedback to
the retailers as well as to the manufacturer about the popularity and complaints of any
particular product .
As Pantaloon Retail believes in value retailing so it is very essential that their supply
chain is very strong because they only make money when they reduce their cost and
supply chain is the only area for maximum cost reduction either it is purchase in bulk
or it is better logistics. They believe that they only win if they are able to decrease
cost and response time.
There are 5 essential areas for the success of any retailer in the supply chain and out
of these 3 are logistical functions these are:
Warehouse
Inventory management
Transportation
Information flow
Technology
All the above departments work closely with each other to complete their task and achieve
Their individual goals. Each department is interdependent with each other. The objective of
These departments are to accomplish mission and vision of the company.
4. Planning Department: This department is making OTB plan, Option plan, allocation,
offers, monitors day wise sells, end of season sell, stock in warehouse and store. They also
Recommend buyer about which style is hitting the shopping floor, monitor sales, stock in
Warehouse and shop floor, sell through, offer planning and do allocation of merchandise
According to requirement of particular merchandise in particular store. This is also known
as Inventory Management and Distribution Management. Planner is the backbone of any
Company if there over stock or stock out its planner responsibility to control inventory and
Coordinate with other team like buying and also do meeting with other senior people of
Company.
5. Operation Department: They work to make sure that employers' businesses run
effectively, smoothly and professionally. This includes all those who work in the organisation
from the management to assembly line workers up to the guys loading and offloading trucks
in manufacturing and retail distribution centres.
6. VM Department: This department coordinates with designer and buyer for the theme of
Season and then they make visual of store accordingly. Their responsibility to change visual
Of all store at the same time, this include display of merchandise and lighting. There are
some elements that are involved in visual merchandising are Window Displays, Interior
Displays, Signs, Cosmetic Productions and other Special Sales and Promotions. Team tries to
combine these element and covey their idea to customer.
7. Marketing Department: They basically communicate the value of product to the
customers for that this department is divided in three teams ATL (Above the Line), BTL
(Below the Line and Loyalty). In ATL they are covering large Geographical area by
advertising from Radio, TV and National news papers and in BTL they are covering
particular targeted area by Organising Fashion events and shows. In LOYALTY they are
distributing Cards and coupons to customer first to check loyal customer and then start
analyse about loyal customers next Need and offer it to customer on discount. It is one of
innovative department and generating new idea.
8. Finance Department: Major roles of the finance department are to identify appropriate
Financial information prior to communicating this information to managers and decision-
Makers, in order that they may make informed judgments and decisions. This departments
Responsibility for organising the financial and accounting affairs including the preparation
And presentation of appropriate accounts, and the provision of financial information for
Manager.
9. Admin Department: They are managing and distributing information within office like
Greeting clients and employees, answering the calls, maintaining files, record of
expenditure, Stationary, printing, housekeeping, Administrative assistants are responsible
for Communicating with clients, outside vendors and staff members on behalf of their
employer.
They greet customers, answer the phone, take messages and set up meetings. This
department is interrelated to HR department.
11. Garment Technology Department: It is divided in three teams one is Construction /Fit
Team, another is Testing team and last is Inspection team. Construction team basically
Checking the size measurement and its grading, testing team are doing chemical like
Crocking, bleeding, colour fastness to light etc and physical test like pilling, abrasion
Resistance etc and inspection team is visiting manufacturing unit to see the directed
Production, there also checks for complete garment which is done in last by testing team.
12. Supply Chain Department: It is the management of the flow of goods. It includes the
Movement and storage of raw materials, work-in-process inventory, and finished goods
from point of origin (Manufacturing Unit) to point of consumption (Store).
Main functions of supply chain management are as follows:
1) Inventory management
2) Distribution management
3) Channel management
4) Payment management
5) Financial Management
6) Supplier management
7) Transportation management
8) Customer service Management.
Some of their work is already done by planning team only Inventory
Management and Distribution Management. They closely work with planning department
And interchange information regarding stock delivery from supplier to warehouse and
Warehouse to store or if any stock is available for inter store transfer or vendor has to
direct supply to store SCM team take care of this things.
Receipt of goods by the store warehouse for deliveries from pantaloons retail india ltd.
Warehouses/Delivery centres
Basic Principle governing the process:
Goods are received according to the Stock Transfer Note issued by the warehouse
a.Receipt of Goods at the Store Warehouse and Security checking procedures
Allocation of manpower for inwarding inform the respective Department Managers about the
merchandise scheduled , so that floor space for the same can be created, if required Delivery
vehicle arrives at the store warehouse.
Security personnel to receive the supporting documents and hand over the same to the
warehouse personnel undertaking the inwarding.
Document set is checked by warehouse personnel to ensure it contains a Stock Transfer Note (STN)
in duplicate and an outward gate pass issued by the dispatching warehouse.
Security at stores will sign the gate pass and write manual IRN (Inward Register Number) on gate
pass.
An H.U. No. - Handling Unit Number (which is a unique number) is pasted on each carton.
During unloading, the inwarding staff should mark off each
H.U. No. on the STN
Independently, the security personnel to maintain a count of the number of cartons being
unloaded, and the inwarding staff to simultaneously scan the HU Number printed on each
carton.
Inwarding cannot be initiated unless all the H.U. numbers are scanned. When all cartons are
unloaded, the Inwarding staffs to check the STN and ensure all cartons marked for delivery
for the store have been received. The number of cartons for delivery to the store (as indicated
in the STN) is cross-checked with the count maintained by the security personnel
while unloading.
Security personnel to record the inwards in the inwarding register (Referto Annexure Details
of GRN are left blank at this moment and will be filled in once the goods are inwarded into
the system.
Security personnel to stamp the two copies of STN with inward received stamp, mentioning
the inward number (according to their register),number of cartons unloaded and date. The
Security Personnel should retain the original set of documents and handover the duplicate
copy of STN to the delivery vehicle staff.
On returning from the store, the delivery boy will hand over all receipted gate pass and
documents to despatching warehouse manager/Outward incharge.c.
Deliveries in a lot of cases go to multiple locations. Hence once unloading at location one is
complete; security personnel from location one is to seal the vehicle again with paper seals. A
stamp of the store and signature of security personnel to be recorded on the seal.
Inwarding staff should scan each SKU received, at the store warehouse to ascertain if
the item is recognized by IP Linux.
If the item exist in the IP Linux proper tagging to be done for thesame (Refer
Annexure for tagging standards).
Again, scan the items in the IP Linux system on the same date.
Currently the stores point of sale system is running on the IP Linux platform. Hence a check
needs to be performed on the items being inwarded to see if they are recognized by the IP
Linux system. Thus each article received needs to be scanned at the store warehouse to
ascertain if the item reflects in the IP Linux system. If the items exist in the IP Linux system
they are in order, hence proper tagging has to be done to all the items before they can be
shifted to the sales floor.
2. Discounts:-Under this the products are sold at a discounted price with percentage
discounts on the original price. This type of scheme is designed to boost up sales in off
season.
Example:
30% off on all the men formal shirts & trousers.
30% off on all the woman formal & casual outfits.
3. End of season sale:-End of season sale or stock clearance sale is been conducted at
pantaloons outlets. They are offering surprising discounts as if you buy 2 any items of
garments and you will get 3 more with your choice absolutely free. These offers are given
as celebration of new year.
4. Seasonal offers:- Pantaloons provide the customers with various discounts and price off
offers at the stores and factory outlet on the seasons like winter and monsoon. This type
of scheme is designed to boost up sales in these seasons.
5. Festive offers:-Pantaloons have come up with festive offer during Diwali and Christmas
by giving away gifts for purchases that are made at the store for cheaper price.
Example:-
If you shop for Rs.4500/- you get a strolley bag worth Rs.1299/- for Rs. 149 only.
If you shop for Rs.2400/- and above you get a lemon set, which is said to be imported, worth
Rs. 649/- for Rs.99/- only.
6. New year offers:- Pantaloons offer gifts for purchases that are make at the store during the
new year of the cheaper price.
Example:-
If you shop for Rs.3500 you get a imported designer glass set for Rs.249/- only.
If you shop for 2500, you get a 3 nights and 4 days holiday package for a couple on an
international cruise.
7. Discounted coupons:- Pantaloons offer 25% discount on its large range of apparels. This
coupon is valid for limited period. This coupon is valid for 25% off on any product product
purchased from www.pantaloon.futurebazar.com.
There can be constraints while sharing information by the retailers for general and
academic survey. Hence more accurate information can be gathered only if such survey is
commissioned by large retailers for their own use.
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.
Therefore, with the generous use of Global and Local Experiences, Indian retailers are going
to improve their bottom lines with efficient, management of Supply Chain and Logistics. At
the same time, Indian Retailers like future Group with retail stores like Big Bazaar,
Pantaloons and Reliance retail are also going to show the world as to how it can be managed
in a more innovative and efficient manner.