How Does India's Retail Supply Chain Management Stack Up?

88% of US retailers and 47% in Europe offer 'buy online pick-up in store'.

18% of Indian retailers do so.

One in three retailers offers same-day delivery to customers in Europe. In India, only one in eight retailers offers this service.

The advent of digital commerce and heavy investments by online retailers in their back-end operations has renewed focus on supply chains as a critical success factor.

Snapdeal is making an estimated supply chain investment of $100-125 million.1

After raising $1 billion, Flipkart is expected to invest in warehouse automation technologies.2

3%Not applicable

11%

0% 5% 10% 15% 20% 25% 30%

Forecast accuracy

5%Charge penalty for deliveries

11%Click and collect at store

18%Instant dispatch

28%Real-time inventory visibility

25%Real-time order visibility

Multichannel Readiness of Supply Chain Management

Real-time inventory and order visibility are most important capabilities for multichannel readiness.

Retail Operations Benchmarking and Excellence Survey (ROBES), 2015

How Does India's Retail Supply Chain Management Stack Up?

Supply chains are the backbone of retail success and the sector in India has much work to do to replicate its peers in the US and Europe.

This comprehensive study of retail supply chains, conducted by TCS in collaboration with the Retailers Association of India, shows how Indian retailers can up their game by building more efficient supply chains.

The survey was conducted across five segments in five functional areas:

Inventory Warehouse Transportation People SupplierFashion DepartmentStores

Food andGrocery

CDIT Other

1The Economic Times, Will Spend Over $100 Million On Supply Chain This Year: Rohit Bansal, Snapdeal, http://articles.economictimes.indiatimes.com/2014-09-19/news/54108911_1_supply-chain-ecommerce-logistics-snapdeal2Business Standard, Where Will Flipkart Spend Its $1 Billion?, http://www.business-standard.com/article/companies/where-will-flipkart-spend-its-1-billion-114072400152_1.html

10% of respondents have certifications for suppliers and conduct quality audits.

More than 50% of respondents said they were ready for the introduction of the Goods and Services Taxdue in April 2016.

TAX

ROBES 2015 considered the following parameters:

1

ProcessMaturity3

Key PerformanceIndicators (KPIs)

Strategic Focus Areas2

0 100

Inventory management and warehouse management are viewed as the top challenges and also a priority for technology investments in the supply chain for FY 2015-16.

8%

11%

12%

13%

14%

19%Strategic Focus Areas in the Retail Supply Chain

Technologysystem

Cost-cutting, sourcing,adapting for multichannel

Coping with pace of change

Transport efficiency

Warehouseefficiency

Inventoryreduction

0

Warehouse People InventorySupplier

Leaders BenchmarkLaggards

64%31%

50%46%54%

54%44%56%

69%

49%33%67%

37%46%54%

Warehouse management exhibits highest levels of maturity.

Focus Areas for Technology Investment

0% 5% 10% 15% 20% 25%

5% Shelf ready merchandise

11% Productivity tools

1% RFID

9% Distributed order management

19% Demand planning

13% Warehouse automation

24%Inventory management

19% Warehouse management

20

40

60

80

64%

Transport

54%

37%

50% 49%

Process Maturity – Industry Benchmark Scores

Supplier management is the least mature function and an area in which many Indian retailers struggle.

Warehouse SupplierPeople Inventory

The survey was conducted online and offline and included executive interviews.

50 retail organizations provided 1,500 data points.

Respondents included CXOs and MDs, heads of operations, and directors.