Supply Chain Management & Logistic
Of
Presented to : Presented By:
Prof. Ashok Advani Sec – MB -
Himanshu Kashyap – 19073
Anuvart Garg – 19067
Kshitij Sethi – 19075
Shazar Khan – 19109
Supply chain
Rishabh
04/13/20
Arora1 – 19095
Pankaj
20
Teotia - 19147
INTRODUCTION
It is a part of USD 44.3 billion Aditya Birla Group.
It is one of the few fashion retailers who is a Brand Manufacturer.
It operates through two segments: Madura Fashion & Lifestyle, and
Pantaloons
Powerhouse to India's leading fashion brands
Extensive reach through multi-channel Distribution
Supply chain 04/13/20 2
20
Introduction ......Cont.
Established Global supply chain
Strong in-house design and product development
capabilities
Track record of Robust financial performance
Wide reach to supply - 2000 Retail stores & 7000+
point of sale
Strong
Supply chain
portfolio of Exclusive private brands
04/13/20
20
3
Best Practices Of Aditya Birla
• On 15 June, 2019, Aditya Birla Fashion and Retail Limited
received an award at the 5th Annual Demand Planning &
Forecasting Forum (DPFF).
• Award for : Demand planning, forecasting, and sales and
operations planning (S&OP).
Supply chain 04/13/20 4
20
Best Practices Of Aditya Birla....Cont.
ABFRL’s benefits have included:
• Reducing past-season inventory by 9% in FY18.
• Increasing finished goods inventory turns by 10% in FY18
while experiencing a 15% average increase in finished goods
sales revenue.
ABFRL chose o9 solutions : flexibility and its intuitive end-
user experience.
• O9 has been instrumental in strengthening planning operations at ABFRL
including:
• Long-range planning/S&OP
• Pre-season and in-season demand management
• Constraint-based supply planning
• Capacity planning and fabric planning
Supply chain 04/13/20 5
20
ABFRL has improved service levels : reduced costs.
Innovation Done By Company
•They collaborates with Madura F&L: largest
distribution network in India - 2052 stores, retail
footprint of about 3 million sq.ft. This collaboration
helped them to operate at large level.
•Collaborates with Intellecap to Anchor ‘Circular
Apparel Innovation Factory’ as Part of its Sustainability
Strategy.
Supply chain 04/13/20 6
20
Innovation Done By Company Cont.....
•In 2012 they acquire Pantaloons, from Future Group, which is
a Multi Brand Outlet.
•Through this they cut down there Supply Chain cost. As now,
they can directly distribute their products from manufacturer to
retail outlet to customers.
•Now to reach the end customer they don’t need any wholesaler
and retailer.
•This
innovation also help them to compete with Lifestyle,
Shoppers stop etc.
Supply chain 04/13/20 7
20
Assumptions
Aditya Birla Fashion and Retail Ltd (ABFRL), the licensee
of American fast fashion brand Forever21, may downsizing
the brand’s stores and cutting costs as sales from the fast
fashion business decline.
ABFRL will probably reduce the sizes of its oldest stores
and will now focus on opening new but smaller stores, to
cover the loss in the market share.
Internal assumptions for growth were very high in this
business, but the profitability requires deeper correction
and they realized that they had built up a lot of inventory
which they needed to know what do with it.
Supply chain 04/13/20 8
20
Why ABFRL thought of (SCM)
With more than 9 million engaged customers and a million
SKUs, ABFRL is home to India’s biggest apparel labels and is
the country’s largest fashion retailer.
The company manages a vast distribution network spanning
over 2,500 outlets and maintains manufacturing capabilities for
some of its categories
To support this high-volume business
continue using manual, disconnected processes and
spreadsheet-based planning that were error-prone, time-
consuming, and provided limited visibility into demand and
supply.
Supply chain 04/13/20 9
20
SCM of ABRFL
They have adopted new technology o9 solutions
which offer them powering digital supply chain
strategies.
Like lifetime entity to update and analyse
demand and supply information in real time.
They needed platform to support their million
style codes also provide them intelligent
information to produce, procure fabric and
manage capacity planning.
O9 is AI based platform which give them edge.
Supply chain 04/13/20 10
20
SCM of SHOPPERS STOP
SUPPLY CHAIN MANAGEMENT The company has
developed process manuals for each part of the
logistics chain.
These modules include vendor management,
purchase order management, stock receiving
systems, purchase verification and inventory build
up, generation and fixing of price and store tags,
dispatch of stocks to the retail floor and forwarding
of bills for payment
Supply chain 04/13/20 11
20
Comparison of SCM
ABRFL Shoppers stop
Uses Ai platform
Uses advance algorithms Uses non AI platform
of scenario planning. They have developed manual process for
This platform easily each logistic chain.
automate mission-critical Best inventory management.
processes.
Has a feature to compare from the last
Powering intelligent
records and maintain the inventory
solutions to their most
complex challenges Solutions to reach customers and increase
across planning and the sales with minimum wastage.
operations.
Supply chain 04/13/20
20
12
Suggestions for Improvement
Aditya Birla Fashion & Retail Ltd (ABFRL)-
Speaking of Industry’s outlet, “sometimes when the markets
are not very good, wholesalers would tend to lower the level of
stock, which means a primary purchase will come down. This
results in direct effect on sales of the brand. This also means
that the company’s expenses would go higher (previous
quarter Rs2,047 crore as against Rs.1,916.39 crore, up 6.85
per cent) because the manufacturers tend to increase the
prices which results in higher expenses of procurement.
We would like to make a suggestion that the company should
divert there mind on increasing the number of procurement
factories so that it’s dependency on these manufacturers and
wholesalers would gradually decrease.04/13/20
Supply chain
20
13
Suggestions for Improvement…..Cont.
Also the company should focus more on local production wherever
possible, to reduce the impact of the duty that the company pays
now. If this step is taken at the right moment then it would be very
scalable, because the brand is very desirable.
Supply chain 04/13/20 14
20
Supply chain 04/13/20 15
20
