Laxmi
Laxmi
Laxmi
A Brief Overview
Prof. R. Sathyanarayanan
Retailing: An overview
Retailing Worlds largest private industry - US$ 6.6 trillion sales annually Indian retailing Largest employer after agriculture - 8%* of population Highest outlet density in world - Around 12 mn outlets Still evolving as an industry - Long way to go
PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas
Source of Entertainment Neighborhood Stores/Convenienc e
Availability/ Low Costs / Distribution
Shopping Experience/Efficienc y
INFORMATION TECHNOLOGY
THE BACKBONE
RFID Technology
What is RFID ? Radio Frequency Identification A micro-chip in a label used to transmit data when the label is exposed to radio waves
RFID Basics
What are the main components ? RFID Tags
Integrated chip
RFID Reader Antena and transceiver(reader) Host Computer Major players: IBM, Texas Instruments
Reader
Execution
Eliminating bar code scanning on pallets and cases in the supply chain and on items in-store can reduce labor costs by 15% Smart shelves monitor on-shelf product availability Real-time product monitoring reduces warehouse shrink, administrative errors and vendor fraud Improved tracking of the more than 1 billion pallets and cases moving through DCs annually Improved visibility of where products are in the supply chain in Wal-Marts DCs and suppliers warehouses offers reduced inventory and costs of carrying this inventory
Savings Savings
$6.7 billion $600 million $575 million $300 million $180 million
Potential Annual Saving
Total
Source: eWeek, September 15, 2003
$8.355 Billion
Vital to Wal-Mart's successful retail model are the tremendous Walmart distribution centers that serve the thousands of stores across the states. Georgia, for example, is home to five Walmart distribution centers-Statesboro, Macon, LaGrange, Monroe, and Douglas. A typical Walmart distribution center is more than one million square feet, or the equivalent of 10 Wal-Mart retail stores. More than two hundred and fifty dock doors serve the fleet of Walmart distribution center trucks that wait in the vast parking lots surrounding the buildings. The aforementioned LaGrange distribution center, which serves stores in Georgia and Alabama, loads and ships over five hundred tractor-trailers of merchandise a day from the one Walmart distribution center alone. A majority of the merchandise one sees in a Wal Mart store goes through a Walmart distribution center first. This enormous volume necessitates the twenty-four hour a day, seven day a week schedule.
THANK YOU
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