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History

Safexpress began its journey in 1997 with just 9 offices and 12 vehicles, with a focus on ensuring safety of cargo, achieving the fastest transit time by surface across India and building the largest network. The company began with an endeavor to create a corporate and organized working environment in the Indian Supply Chain & Logistics industry. Today, Safexpress is a nationwide Supply Chain & Logistics company, with over 3600 vehicles, over 567 destinations and over 7 million square feet of warehousing space. Its network caters to every square-inch of India, and with 48 Hubs and Mega Hubs, over 1000 routes and vehicles covering over 600,000 kms every day, Safexpress delivers over 80 million packages every year. Today, Safexpress is widely acknowledged as the 'Knowledge Leader' and 'Market Leader' in Indian Supply Chain & Logistics industry and offers customized and competitive logistics solutions. 

MILESTONES

Vision & Mission

Vision & Mission

Vision"To be a conscious learning organization maintaining flexibility for change so as to provide the most customized solutions; striving towards global market share whilst maintaining dominance in the domestic market through good HR practice and excellent customer service". 

Mission"We shall adopt and internalize a work culture which demonstrates a 'We Can We Will' attitude to reflect in our daily responsibilities so as to far exceed our objectives, consistently striving towards market dominance. We will create historical landmarks forming a strong edifice for the future overcoming all obstacles proactively, as our personal responsibility and commitment are to create delight for the customer with impeccable personalized services" 

Core Values

Our Core Values are based on our culture of respect for our values, our goals, our people, our partners and our customers.

Services

Express Distribution

Third Party Logistics

Consulting

SafeAir

Stock2Shelf

Campus2Home

Easy2move

VERTICALS

Express Distribution

A pioneer in Express Distribution Safexpress continues to innovate its offerings. We assure

time-definite delivery services using a combination of air, surface and multimodal transport.

These services enable our customers to plan their in transit inventory – an important input for

advanced materials and distribution requirements planning. We fully utilize our

infrastructure, technology resources, research and development, network, fleet and our

ecosystem of partners to provide an unrivalled average transit time of 1.8 days. 

Safe ADVANTAGE:

Fastest transit-time of just 1.8 days

Largest Supply Chain Network

Guaranteed On-time Door-to-Door Express Delivery

Largest fleet of 3600 vehicles in the Industry

ISO-9002 certified, all-weather-proof, containerized vehicles

Multi-modal freight services with varied customized solutions State-of-the-art Hub & Spoke Model Advanced 'Track and Trace' facility 24 x 7, 365 days a year operations Dedicated, well trained and experienced workforce Reverse logistics facilities Online Proof of Delivery system Pick and pack operations Additional Services - To-Pay, Draft on Delivery (DOD), Delivery against Consignor Copy

(DACC) Paying Octroi, Entry Tax and other transportation levies on behalf of the customer Invoicing, order processing and other documentation management services Services spanning across the entire value chain

Third Party Logistics (3PL)

Warehousing has become a key differentiator in an organization’s go-to-market strategy. The choice of warehousing location, the Stock Keeping Unit mix, the level of automation and the distance from the customer / vendor are often decisive factors in a product’s success. Here’s where we bring our experience and expertise to add value to our customer’s value chain activities: 

Inventory management Pick-Pack Operations Bar Coding, Labeling, Scanning Quality control and audit All India Door-to-door Express Delivery Invoicing Reverse Logistics Kitting & Tagging Transport worthy Packing Services Stock Audits Store-ready delivery Documentation management ABC analysis Cycle Counting Location Management Product Postponement Warehouse Management Systems Implementation

Consulting

Emerging markets, varied consumption patterns, shortening product lifecycles, channel consolidation, changing preferences of customers and compliance requirements and very high demand volatility, are all adding complexity to the Supply Chain. This complexity coupled with pressures to increase revenue and reduce operational costs is forcing organizations to streamline their operations and design innovative solutions. 

Companies are now recognizing that revenue growth depends, to a significant extent, on the efficiency of their Supply Chain. The company believes that understanding customer mindset and establishing tight links with customers/suppliers to obtain supply/demand visibility is the key to competitive operations. 

Safexpress offers Value-added services beyond physical operations, in the form of Supply Chain & Logistics Consulting. Our Expert Team of consultants is vastly experienced and brings global know-how, best practices and cutting edge technology solutions to the table, to make an organization's Supply Chain model more dynamic. Safexpress' Supply Chain Consulting services range right from planning, strategizing and network designing to actual Supply Chain Network implementation. 

Safexpress' Supply Chain solutions focus on the strategies, processes and technologies required to drive growth and increase profitability across the entire value chain. Combining its strategic and operational capabilities with its long experience in the Supply Chain & Logistics industry help the clients streamline their supply chain. The company also helps in designing and implementation of market-leading strategies, tactics, and infrastructures to improve the effectiveness and efficiency of procurement, production and distribution operations as well as meet and exceed their financial goals and objectives of our clients.

SafeAir

We partner with Air Cargo Agents who collaborate with Jet Airways, Air India, Kingfisher, Indigo and Spice Jet to ensure speedy delivery. Air Cargo Management requires a special expertise in handling and document management - this is one of our core competencies.

Stock2Shelf

Our 'Stock2Shelf' service is a first of its kind – it comprises of determining the need at a retail store, assessing the stock available at the feeder warehouse, delivering the stock as required within the given time lines. The service has been especially successful in retail outlets operating out of mega malls where customer foot-falls are high. 

The outlets benefit in not having to store high inventories in their back rooms, the distribution company does not have to manage and own warehouses near the point of consumption, and the customers always have their favourite brands on the shelf. This win-win-win service entails precise last-mile delivery expertise that we have acquired over the years serving various retail outlet formats. 

Stock2Shelf provides comprehensive mall supply chain services, inclusive of movement of retail and lifestyle goods, inspection and estimation, professional packaging, security clearance, storage and destination delivery, unpacking and reassembling/setting of retail goods, and finally reverse logistics. It ensures 'time-definite' delivery through professionally trained crew that manages stocks along with the necessary paperwork required to enter the malls due to the increased security checks 

Campus2Home

'Campus2home' is a unique service to make student's baggage handling smooth during their transition from student life to professional life. This service is offered to the college students for delivering their belongings to their homes, safely and swiftly. It is a highly customized solution for students to manage all hassles related to students' luggage movement. 

To support students in packing their baggage, we provide special 20 kg boxes that are exclusively designed keeping in mind the need of the students. These boxes are available on request with no cost attached to it. This initiative is taken by the company to ensure smooth movement of the students' personal belongings. 

'Campus2Home' was launched to address the problems that students usually come across in shipping their luggage back to their homes at the time of passing out. This initiative on our part goes a long way in ensuring that these students can enjoy the rest of their time at the campus without any worry of their possessions not reaching home safely. 

We provide free pick-up of students' luggage from hostels and also arrange for door-delivery to their specified home addresses. This service provides free insurance; packaging and documentation support. For the comfort of students, we have also launched a special helpdesk for providing support with respect to this customized service. The students can avail our specialized services by mailing their request to us at campus2home@safexpress.com or by calling us at our toll-free number – 1800 113 113. 

Some of the prestigious colleges that we cater to:

Indian Institute of Management (All) X.L.R.I. F.M.S., Delhi University S.P.Jain Institute of Management Narsee Monji Institute of Management Management Development Institute (MDI) I.I.F.T Xavier Institute of Management I.I.T. (All) International Management Institute (IMI) KJ Somaiya Institute of Management

Symbiosis Pune Institute of Management Technology (IMT) Loyola Institute Institute of Rural Management Nirma Institute of Management

Easy2Move 

Door pickup and door delivery Free Easy2move Boxes Uniform price per Box for any regular destination Limited liability (Maximum ` 5000) without Value Surcharge. Customer’s small packages can be put in our Easy2move box. Ideal for product not having industrial packing, loose material Commercial booking allowed ( With proper documentation) Optional/ Value added services like To pay, Draft on Delivery, Safextension allowed and

chargeable extra as per Retail Tariff For individuals, standard printed declaration made available For Safeair booing of E2m Box, normal Retail Tariff applies.

Organization ( B2B, B2C) Individual(C2C,C2B)Commercial(Sale, Return, Service)

Non Commercial(Own use, Others)

Personal Items, Gifts, Non comm. movement

Small Packages for Sale Sample Festival Gifts ( Xmas, Diwali)Unsold Returns from stores

Corporate GiftsOccasional Gifts (Birthday, Marriage etc.)

Spares, Equipments, Appliance, Electronics

Printed Gifts (Diary, Calendar etc.)

Consumable Gift (Dry Fruits, Chocolate etc.)

Teleshopping, Online Shopping

Promotional Material (Catalogue, Pamphlets, Brochure, CDs, Posters etc)

Event Purchases ( for Marriage, Puja Pandal, Election Campaign etc)

Dress, Clothing Sticker, Labels Warranty ReturnsDefective Returns Study / Training Material Books,Study MaterialSmall Commercial orders

Uniform, accessories Casual Shopping on Travel

Edibles Specialties Office Automation Products

Books, Study materialPrinted Stationary e.g. Files, V.Card, Letter pad, forms, bill.

Personal belongings of working executives.

Small BoutiquesConsumables/ Stationary e.g.Pen, paper, stickers,Cartridge

HandicraftsFilled applications (e.g. Insurance, Mobile, Shares etc)

Tourist Purchase Exhibition MaterialAnything which can fit in our Easy2move box(within our booking and packing guidelines)

Items Not Allowed to be Booked under Easy2move: Commercial Items without proper documentation Restricted, Prohibited, Illegal or Hazardous items ( Refer Service Reference Guide) Liquid, Fragile, Perishable, Arms & Ammunition

Valuable Cargo , Currency, Ornaments Not replaceable items like Original Certificate, Data Hard disk/ CD etc. Material of >20 Kg or dimension not fit to suit Easy2move Box

Apparel & Lifestyle Healthcare Hi-Tech Publishing Automotive Institutional Engg. & Electrical H/w FMCG & Consumer Elec.

Verticals

While Supply Chain processes are similar across domains, there are industry specific, as well as company specific needs that Safexpress understands and caters to. Be they Vendor Managed Inventory Services in the Automotive sector or Controlled - conditions shipment in the pharma industry, or secure and confidential book launches in the Publishing world, we have exceeded our customers’ expectations. 

Apparel & Lifestyle Healthcare Hi-Tech Publishing Automotive Institutional Engineering & Electrical FMCG & Consumer Durables

Safextension

The Company has done an operational plotting of the entire country and the services under the sub brand of 'Safextension'. It was the idea of a 'Network beyond a Network' that led to the formation of Safextension. A Manual on the concept of Safextension was created with an objective to guide how one could reach 634 districts of India through 209 Gateways. The Manual provides information on a predefined routing for delivery via a predefined gateway to a predefined district. This manual helps in streamlining the company operations from the very first step. It is the first manual of its kind for India. 

Safextension Service is 'A Network beyond the Scheduled Network'. The concept is a very well thought over design, which has come in after a lot of research

through the Company owned Centre for Intelligence Research Excellence. Through Safextension service, Safexpress has mapped and covered every square inch of

the country and can deliver to every possible place in India. The Company provides services to the entire 634 districts of the country. Not only the reach but even the Transit Time has been scheduled. We take minimum time

in reaching the scheduled destination. All our deliveries are Time-definite. Safextension enables the customer to plan the supplies even to the remotest locations

keeping in consideration the time when the supplies would be available with his

dealer/retailer. Earlier the service was available to only 3PL customers. However, now Safexpress has

extended this service to all its customers. Safexpress operates on the concept of 'Hub & Spoke' Model. Safexpress delivers goods to the consignees on the Scheduled Network of over 568

locations through 209 Delivery Gateways. These 209 Delivery Gateways also deliver to the locations under Safextension Network. The robust design aims at simplicity and hence these Delivery Gateways are assigned the

responsibility of delivering to the identified Districts. Unlike other Service Providers,

Safexpress has made it possible for the lowest wrung of the employees to identify the

Delivery Gateway that would deliver the consignment booked by him for a Safextension

location. A Reference Guide (periodically updated) helps do away with any anomaly. Most of the Service Providers do not have a fixed Transit Time for the locations served

other than on the Scheduled Network, which does not allow the customer to plan his

supplies. However, Safexpress follows a stringent transit-time schedule. Safexpress has a transparent system for rates of transportation to such locations, while the

others follow different systems; the one common is based on kilometres. There always

remains confusion with respect to the perception and reality giving rise to discomfort.

The location of the last Delivery Station of different Service Providers also raises the

issue of establishing the exact distance to the intended location of delivery and hence

there is a dilemma in the mind of the customer An R & D exercise brings out the most regularly used Safextension Locations, which are

added to the Scheduled Network from time to time. This gives the benefit of saving on

the extra Service Charge that the customer pays for delivering to such locations, an

exercise which is not a very conscious approach with most of the Service Providers.

The company ensures that the Delivery Gateways have vehicles in addition to their

routine delivery operations to ensure the committed transit schedule and avoid any

service related issues.Logistics

Logistics is the management of the flow of goods between the point of origin and the point of

destination in order to meet the requirements of customers or corporations. Logistics involves

the integration of information, transportation, inventory, warehousing, material handling,

and packaging, and often security. Today the complexity of production logistics can be

modeled, analyzed, visualized and optimized by plant simulation software, but is constantly

changing. This can involve anything from consumer goods such as food, to IT materials, to

aerospace and defense equipment.

Origins and definition

The term logistics comes from the Greek logos , meaning "speech, reason, ratio, rationality,

language, phrase", and more specifically from the Greek word logistiki , meaning accounting

and financial organization.

Logistics is considered to have originated in the military's need to supply themselves with

arms, ammunition and rations as they moved from their base to a forward position. In

ancient Greek, Roman and Byzantine empires, military officers with the title Logistikas were

responsible for financial and supply distribution matters

The Oxford English Dictionary defines logistics as "the branch of military science relating to

procuring, maintaining and transporting material, personnel and facilities." However,

the New Oxford American Dictionary defines logistics as "the detailed coordination of a

complex operation involving many people, facilities, or supplies" and the Oxford Dictionary

online defines it as, "the detailed organization and implementation of a complex

operation:" Another dictionary definition is "the time-related positioning of resources." As

such, logistics is commonly seen as a branch of engineering that creates "people systems"

rather than "machine systems". When talking in terms of human resources management,

logistics means giving inputs, i.e. "recruiting manpower’s", which ultimately work for the

final consumer or to delivery.

According to the Council of Logistics Management, logistics contains the integrated

planning, control, realization and monitoring of all internal and network-wide material-, part-

and product flow including the necessary information flow in industrial and trading

companies along the complete value-added chain (and product life cycle) for the purpose of

conforming to customer requirements.

Main logistics targets

Logistics is one of the main functions within a company. The main targets of logistics can be

divided into performance related and cost related. They are high due date reliability, short

delivery times, low inventory level and high capacity utilization. But when decisions need to

be made, there is always a tradeoff between these targets. This is what makes being a

logistician challenging and interesting.

Logistics viewpoints

Inbound logistics is one of the primary processes and it concentrates on purchasing and

arranging inbound movement of materials, parts and/or finished inventory from suppliers to

manufacturing or assembly plants, warehouses or retail stores.

Outbound logistics is the process related to the storage and movement of the final product

and the related information flows from the end of the production line to the end user.

Logistics fields

Given the services performed by logistics, one can distinguish the main fields of it as it

follows:

Procurement Logistics

Production Logistics

Distribution Logistics

After sales Logistics

Disposal Logistics

Procurement Logistics consists of activities such as market research, requirements planning,

make or buy decisions, supplier management, ordering, and order controlling. The targets in

procurement logistics might be contradictory - maximize the efficiency by concentrating on

core competences, outsourcing while maintaining the autonomy of the company, and

minimization of procurement costs while maximizing the security within the supply process.

Production Logistics connects procurement to distribution logistics. The main function of

production logistics is to use the available production capacities to produce the products

needed in distribution logistics. Production logistics activities are related to organizational

concepts, layout planning, production planning, and control.

Distribution Logistics has, as main tasks, the delivery of the finished products to the

customer. It consists of order processing, warehousing, and transportation. Distribution

logistics is necessary because the time, place, and quantity of production differs with the

time, place, and quantity of consumption.

Disposal Logistics' main function is to reduce logistics cost(s), enhance service(s), and save

natural resources.

Military logistics

In military science, maintaining one's supply lines while disrupting those of the enemy is a

crucial—some would say the most crucial—element of military strategy, since an armed

force without resources and transportation is defenseless. The defeat of the British in

the American War of Independence and the defeat of the Axis in the African theatre of World

War II are attributed to logistical failure. The historical leaders Hannibal Barca, Alexander

the Great, and the Duke of Wellington are considered to have been logistical geniuses.

Militaries have a significant need for logistics solutions, and so have developed advanced

implementations. Integrated Logistics Support (ILS) is a discipline used in military industries

to ensure an easily supportable system with a robust customer service (logistic) concept at the

lowest cost and in line with (often high) reliability, availability, maintainability and other

requirements as defined for the project.

In military logistics, logistics officers manage how and when to move resources to the places

they are needed.

Supply chain management in military logistics often deals with a number of variables in

predicting cost, deterioration, consumption, and future demand. The US Military's

categorical supply classification was developed in such a way that categories of supply with

similar consumption variables are grouped together for planning purposes. For instance,

peacetime consumption of ammunition and fuel will be considerably less than wartime

consumption of these items, whereas other classes of supply such as subsistence and clothing

have a relatively consistent consumption rate regardless of war or peace. Troops will always

require uniform and food. More troops will require more uniforms and food.

Some classes of supply have a linear demand relationship—as more troops are added more

supply items are needed—as more equipment is used more fuel and ammunition is consumed.

Other classes of supply must consider a third variable besides usage and quantity: time. As

equipment ages more and more repair parts are needed over time, even when usage and

quantity stays consistent. By recording and analyzing these trends over time and applying to

future scenarios, the US Military can accurately supply troops with the items necessary at the

precise moment they are needed. History has shown that good logistical planning creates a

lean and efficient fighting force. Lack thereof can lead to a clunky, slow, and ill-equipped

force with too much or too little supply.

Business logistics

.

Logistics as a business concept evolved in the 1950s due to the increasing complexity of

supplying businesses with materials and shipping out products in an increasingly globalized

supply chain, leading to a call for experts called supply chain logisticians. Business logistics

can be defined as "having the right item in the right quantity at the right time at the right

place for the right price in the right condition to the right customer", and is the science of

process and incorporates all industry sectors. The goal of logistics work is to manage the

fruition of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus

(outbound logistics) covering the flow and storage of materials from point of origin to point

of consumption. The main functions of a qualified logistician include inventory

management, purchasing, transportation, warehousing, consultation and the organizing

and planning of these activities. Logisticians combine a professional knowledge of each of

these functions to coordinate resources in an organization. There are two fundamentally

different forms of logistics: one optimizes a steady flow of material through a network

of transport links and storage nodes; the other coordinates a sequence of resources to carry

out some project.

Production logistics

The term production logistics is used to describe logistic processes within an industry. The

purpose of production logistics is to ensure that each machine and workstation is being fed

with the right product in the right quantity and quality at the right time. The concern is not the

transportation itself, but to streamline and control the flow through value-adding processes

and eliminate non–value-adding ones. Production logistics can be applied to existing as well

as new plants. Manufacturing in an existing plant is a constantly changing process. Machines

are exchanged and new ones added, which gives the opportunity to improve the production

logistics system accordingly. Production logistics provides the means to achieve customer

response and capital efficiency.

Production logistics is becoming more important with decreasing batch sizes. In many

industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing even a

single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential

part of production logistics—due to product safety and product reliability issues—is also

gaining importance, especially in the automotive and medical industries.

Logistics management

Logistics is that part of the supply chain which plans, implements and controls the efficient,

effective forward and reverse flow and storage of goods, services and related information

between the point of origin and the point of consumption in order to meet customer and legal

requirements.

Logistics management is known by many names, the most common are as follows:

Materials Management

Channel Management

Distribution (or Physical Distribution)

Business or Logistics Management or

Supply Chain Management

Warehouse management systems and warehouse control systems

Although there is some functionality overlap, the differences between warehouse

management systems (WMS) and warehouse control systems (WCS) can be significant.

Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and

trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done

by the most effective means. For instance, a WMS can tell the system it is going to need five

of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts,

other considerations may have come into play or there could be a logjam on a conveyor. A

WCS can prevent that problem by working in real time and adapting to the situation by

making a last-minute decision based on current activity and operational status.

Working synergistically, WMS and WCS can resolve these issues and maximize

efficiency for companies that rely on the effective operation of their warehouse or

distribution center.

Logistics outsourcing

Logistics outsourcing involves a relationship between a company and an LSP which,

compared with basic logistics services, has more customized offerings, encompasses a broad

number of service activities, is characterized by a long-term orientation, and, thus, has a

rather strategic nature.

Third-party logistics

Third-party logistics (3PL) involves using external organizations to execute logistics

activities that have traditionally been performed within an organization itself. According to

this definition, third-party logistics includes any form of outsourcing of logistics activities

previously performed in-house. If, for example, a company with its own warehousing

facilities decides to employ external transportation, this would be an example of third-party

logistics. Logistics is an emerging business area in many countries.

Fourth-party logistics

The concept of Fourth-Party Logistics (4PL) provider was first defined by Andersen

Consulting (Now Accenture) as an integrator that assembles the resources, capabilities and

technology of its own organization and other organizations to design, build, and run

comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider

targets a function, a 4PL targets management of the entire process. Some have described a

4PL as a general contractor who manages other 3PLs, truckers, forwarders, custom house

agents, and others, essentially taking responsibility of a complete process for the customer.

Emergency logistics

Emergency logistics is a term used by the logistics, supply chain and manufacturing

industries to denote specific time critical modes of transport used to move goods or objects

rapidly in the event of an emergency. The reason for enlisting emergency logistics services

could be a production delay or anticipated production delay, or it could be that specialist

equipment is needed urgently to prevent instances such as aircraft being grounded (also

known as "aircraft on ground"--AOG), ships being delayed, or telecommunications failure.

Supply chain management

Supply chain management (SCM) is the management of a network of

interconnected businesses involved in the ultimate provision of product and service packages

required by end customers (Harland, 1996).Supply chain management spans all movement

and storage of raw materials, work-in-process inventory, and finished goods from point of

origin to point of consumption .

Another definition is provided by the APICS Dictionary when it defines SCM as the "design,

planning, execution, control, and monitoring of supply chain activities with the objective of

creating net value, building a competitive infrastructure, leveraging worldwide logistics,

synchronizing supply with demand and measuring performance globally."

Definitions

Further common and accepted definitions of supply chain management are:

Managing upstream and downstream value added flow of materials, final goods and

related information among suppliers; company; resellers; final consumers are supply

chain management.

Supply chain management is the systematic, strategic coordination of the traditional

business functions and the tactics across these business functions within a particular

company and across businesses within the supply chain, for the purposes of improving

the long-term performance of the individual companies and the supply chain as a whole.

A customer focused definition is given by Hines "Supply chain strategies require a total

systems view of the linkages in the chain that work together efficiently to create customer

satisfaction at the end point of delivery to the consumer. As a consequence costs must be

lowered throughout the chain by driving out unnecessary costs and focusing attention on

adding value. Throughout efficiency must be increased, bottlenecks removed and

performance measurement must focus on total systems efficiency and equitable reward

distribution to those in the supply chain adding value. The supply chain system must be

responsive to customer requirements”

Global supply chain forum - supply chain management is the integration of key business

processes across the supply chain for the purpose of creating value for customers and

stakeholders.

According to the Council of Supply Chain Management Professionals (CSCMP), supply

chain management encompasses the planning and management of all activities involved

in sourcing, procurement, conversion, and logistics management. It also includes the

crucial components of coordination and collaboration with channel partners, which can

be suppliers, intermediaries, third-party service providers, and customers. In essence,

supply chain management integrates supply and demand management within and across

companies. More recently, the loosely coupled, self-organizing network of businesses that

cooperate to provide product and service offerings has been called the Extended

Enterprise.

A supply chain, as opposed to supply chain management, is a set of organizations directly

linked by one or more of the upstream and downstream flows of products, services, finances,

and information from a source to a customer. Managing a supply chain is 'supply chain

management'

Supply chain event management (abbreviated as SCEM) is a consideration of all possible

events and factors that can disrupt a supply chain. With SCEM possible scenarios can be

created and solutions devised.

In many cases the supply chain includes the collection of goods after consumer use for

recycling. Including 3PL or other gathering agencies as part of the RM re-patriation process

is a way of illustrating the new end-game strategy.

Problems addressed by supply chain management

Supply chain management must address the following problems:

Distribution Network Configuration: number, location and network missions of

suppliers, production facilities, distribution centers, warehouses, cross-docks and

customers.

Distribution Strategy: questions of operating control (centralized, decentralized or

shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD

(direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier,

including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer

on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment

strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-

operated, private carrier, common carrier, contract carrier, or 3PL).

Trade-Offs in Logistical Activities: The above activities must be well coordinated in

order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if

only one of the activities is optimized. For example, full truckload (FTL) rates are more

economical on a cost per pallet basis than less than truckload (LTL) shipments. If,

however, a full truckload of a product is ordered to reduce transportation costs, there will

be an increase in inventory holding costs which may increase total logistics costs. It is

therefore imperative to take a systems approach when planning logistical activities. These

trade-offs are key to developing the most efficient and effective Logistics and SCM

strategy.

Information: Integration of processes through the supply chain to share valuable

information, including demand signals, forecasts, inventory, transportation, potential

collaboration, etc.

Inventory Management: Quantity and location of inventory, including raw materials,

work-in-process (WIP) and finished goods.

Cash-Flow: Arranging the payment terms and methodologies for exchanging funds

across entities within the supply chain.

Supply chain execution means managing and coordinating the movement of materials,

information and funds across the supply chain. The flow is bi-directional.

Activities/functions

Supply chain management is a cross-function approach including managing the movement of

raw materials into an organization, certain aspects of the internal processing of materials into

finished goods, and the movement of finished goods out of the organization and toward the

end-consumer. As organizations strive to focus on core competencies and becoming more

flexible, they reduce their ownership of raw materials sources and distribution channels.

These functions are increasingly being outsourced to other entities that can perform the

activities better or more cost effectively. The effect is to increase the number of organizations

involved in satisfying customer demand, while reducing management control of daily

logistics operations. Less control and more supply chain partners led to the creation of supply

chain management concepts. The purpose of supply chain management is to improve trust

and collaboration among supply chain partners, thus improving inventory visibility and the

velocity of inventory movement.

Several models have been proposed for understanding the activities required to manage

material movements across organizational and functional boundaries. SCOR is a supply chain

management model promoted by the Supply Chain Council. Another model is the SCM

Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be

grouped into strategic, tactical, and operational levels. The CSCMP has adopted The

American Productivity & Quality Center (APQC) Process Classification Framework a high-

level, industry-neutral enterprise process model that allows organizations to see their business

processes from a cross-industry viewpoint.

Strategic level

Strategic network optimization, including the number, location, and size of

warehousing, distribution centers, and facilities.

Strategic partnerships with suppliers, distributors, and customers, creating

communication channels for critical information and operational improvements such

as cross docking, direct shipping, and third.

Product life cycle management, so that new and existing products can be optimally

integrated into the supply chain and capacity management activities.

Information technology chain operations.

Where-to-make and make-buy decisions.

Aligning overall organizational strategy with supply strategy.

It is for long term and needs resource commitment.

Tactical level

Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, scheduling, and planning process definition.

Inventory decisions, including quantity, location, and quality of inventory.

Transportation strategy, including frequency, routes, and contracting.

Benchmarking of all operations against competitors and implementation of best

practices throughout the enterprise.

Milestone payments.

Focus on customer demand and Habits.

Operational level

Daily production and distribution planning, including all nodes in the supply chain.

Production scheduling for each manufacturing facility in the supply chain (minute by

minute).

Demand planning and forecasting, coordinating the demand forecast of all customers and

sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in collaboration

with all suppliers.

Inbound operations, including transportation from suppliers and receiving inventory.

Production operations, including the consumption of materials and flow of finished

goods.

Outbound operations, including all fulfillment activities, warehousing and transportation

to customers.

Order promising, accounting for all constraints in the supply chain, including all

suppliers, manufacturing facilities, distribution centers, and other customers.

From production level to supply level accounting all transit damage cases & arrange to

settlement at customer level by maintaining company loss through insurance company.

Managing non-moving, short-dated inventory and avoiding more products to go short-

dated.

Importance of supply chain management

Organizations increasingly find that they must rely on effective supply chains, or networks, to

compete in the global market and networked economy, this concept of business relationships

extends beyond traditional enterprise boundaries and seeks to organize entire business

processes throughout a value chain of multiple companies.

During the past decades, globalization, outsourcing and information technology have enabled

many organizations, such as Dell and Hewlett Packard, to successfully operate solid

collaborative supply networks in which each specialized business partner focuses on only a

few key strategic activities. This inter-organizational supply network can be acknowledged as

a new form of organization. However, with the complicated interactions among the players,

the network structure fits neither "market" nor "hierarchy" categories . It is not clear what

kind of performance impacts different supply network structures could have on firms, and

little is known about the coordination conditions and trade-offs that may exist among the

players. From a systems perspective, a complex network structure can be decomposed into

individual component firms . Traditionally, companies in a supply network concentrate on the

inputs and outputs of the processes, with little concern for the internal management working

of other individual players. Therefore, the choice of an internal management control structure

is known to impact local firm performance.

In the 21st century, changes in the business environment have contributed to the development

of supply chain networks. First, as an outcome of globalization and the proliferation of

multinational companies, joint ventures, strategic alliances and business partnerships,

significant success factors were identified, complementing the earlier "Just-In-Time", "Lean

Manufacturing" and "Agile Manufacturing" practices. Second, technological changes,

particularly the dramatic fall in information communication costs, which are a significant

component of transaction costs, have led to changes in coordination among the members of

the supply chain network

Historical developments in supply chain management

Six major movements can be observed in the evolution of supply chain management studies:

Creation, Integration, and Globalization.

1. Creation era

The term supply chain management was first coined by a U.S. industry consultant in the

early 1980s. However, the concept of a supply chain in management was of great importance

long before, in the early 20th century, especially with the creation of the assembly line. The

characteristics of this era of supply chain management include the need for large-scale

changes, re-engineering, downsizing driven by cost reduction programs, and widespread

attention to the Japanese practice of management.

2. Integration era

This era of supply chain management studies was highlighted with the development of

Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by

the introduction of Enterprise Resource Planning (ERP) systems. This era has continued to

develop into the 21st century with the expansion of internet-based collaborative systems. This

era of supply chain evolution is characterized by both increasing value-adding and cost

reductions through integration.

In fact a supply chain can be classified as a Stage 1, 2 or 3 network. In stage 1 type supply

chain, various systems such as Make, Storage, Distribution, Material control, etc. are not

linked and are independent of each other. In a stage 2 supply chain, these are integrated under

one plan and is ERP enabled. A stage 3 supply chain is one in which vertical integration with

the suppliers in upstream direction and customers in downstream direction is achieved. An

example of this kind of supply chain is Tesco.

3. Globalization era

The third movement of supply chain management development, the globalization era, can be

characterized by the attention given to global systems of supplier relationships and the

expansion of supply chains over national boundaries and into other continents. Although the

use of global sources in the supply chain of organizations can be traced back several decades

(e.g., in the oil industry), it was not until the late 1980s that a considerable number of

organizations started to integrate global sources into their core business. This era is

characterized by the globalization of supply chain management in organizations with the goal

of increasing their competitive advantage, value-adding, and reducing costs through global

sourcing.

4. Specialization era (phase I): outsourced manufacturing and distribution

In the 1990s, industries began to focus on “core competencies” and adopted a specialization

model. Companies abandoned vertical integration, sold off non-core operations, and

outsourced those functions to other companies. This changed management requirements by

extending the supply chain well beyond company walls and distributing management across

specialized supply chain partnerships.

This transition also re-focused the fundamental perspectives of each respective organization.

OEMs became brand owners that needed deep visibility into their supply base. They had to

control the entire supply chain from above instead of from within. Contract manufacturers

had to manage bills of material with different part numbering schemes from multiple OEMs

and support customer requests for work -in-process visibility and vendor-managed inventory

(VMI).

The specialization model creates manufacturing and distribution networks composed of

multiple, individual supply chains specific to products, suppliers, and customers who work

together to design, manufacture, distribute, market, sell, and service a product. The set of

partners may change according to a given market, region, or channel, resulting in a

proliferation of trading partner environments, each with its own unique characteristics and

demands.

5. Specialization era (phase II): supply chain management as a service

Specialization within the supply chain began in the 1980s with the inception of transportation

brokerages, warehouse management, and non-asset-based carriers and has matured beyond

transportation and logistics into aspects of supply planning, collaboration, execution and

performance management.

At any given moment, market forces could demand changes from suppliers, logistics

providers, locations and customers, and from any number of these specialized participants as

components of supply chain networks. This variability has significant effects on the supply

chain infrastructure, from the foundation layers of establishing and managing the electronic

communication between the trading partners to more complex requirements including the

configuration of the processes and work flows that are essential to the management of the

network itself.

Supply chain specialization enables companies to improve their overall competencies in the

same way that outsourced manufacturing and distribution has done; it allows them to focus

on their core competencies and assemble networks of specific, best-in-class partners to

contribute to the overall value chain itself, thereby increasing overall performance and

efficiency. The ability to quickly obtain and deploy this domain-specific supply chain

expertise without developing and maintaining an entirely unique and complex competency in

house is the leading reason why supply chain specialization is gaining popularity.

Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has

taken root primarily in transportation and collaboration categories. This has progressed from

the Application Service Provider (ASP) model from approximately 1998 through 2003 to the

On-Demand model from approximately 2003-2006 to the Software as a Service (SaaS) model

currently in focus today.

Supply chain business process integration

Successful SCM requires a change from managing individual functions to integrating

activities into key supply chain processes. An example scenario: the purchasing department

places orders as requirements become known. The marketing department, responding to

customer demand, communicates with several distributors and retailers as it attempts to

determine ways to satisfy this demand. Information shared between supply chain partners can

only be fully leveraged through process integration.

Supply chain business process integration involves collaborative work between buyers and

suppliers, joint product development, common systems and shared information. According to

Lambert and Cooper (2000), operating an integrated supply chain requires a continuous

information flow. However, in many companies, management has reached the conclusion that

optimizing the product flows cannot be accomplished without implementing a process

approach to the business. The key supply chain processes stated by Lambert  are:

Customer relationship management

Customer service management

Demand management style

Order fulfillment

Manufacturing flow management

Supplier relationship management

Product development and commercialization

Returns management

Much has been written about demand management. Best-in-Class companies have similar

characteristics, which include the following: a) Internal and external collaboration b) Lead

time reduction initiatives c) Tighter feedback from customer and market demand d) Customer

level forecasting

One could suggest other key critical supply business processes which combine these

processes stated by Lambert such as:

a. Customer service management

b. Procurement

c. Product development and commercialization

d. Manufacturing flow management/support

e. Physical distribution

f. Outsourcing/partnerships

g. Performance measurement

h. Warehousing management

a) Customer service management process

Customer Relationship Management concerns the relationship between the organization and

its customers. Customer service is the source of customer information. It also provides the

customer with real-time information on scheduling and product availability through interfaces

with the company's production and distribution operations. Successful organizations use the

following steps to build customer relationships:

determine mutually satisfying goals for organization and customers

establish and maintain customer rapport

produce positive feelings in the organization and the customers

b) Procurement process

Strategic plans are drawn up with suppliers to support the manufacturing flow management

process and the development of new products. In firms where operations extend globally,

sourcing should be managed on a global basis. The desired outcome is a win-win relationship

where both parties benefit, and a reduction in time required for the design cycle and product

development. Also, the purchasing function develops rapid communication systems, such

as electronic data interchange (EDI) and Internet linkage to convey possible requirements

more rapidly. Activities related to obtaining products and materials from outside suppliers

involve resource planning, supply sourcing, negotiation, order placement, inbound

transportation, storage, handling and quality assurance, many of which include the

responsibility to coordinate with suppliers on matters of scheduling, supply continuity,

hedging, and research into new sources or programs.

c) Product development and commercialization

Here, customers and suppliers must be integrated into the product development process in

order to reduce time to market. As product life cycles shorten, the appropriate products must

be developed and successfully launched with ever shorter time-schedules to remain

competitive. According to Lambert and Cooper (2000), managers of the product development

and commercialization process must:

1. coordinate with customer relationship management to identify customer-articulated

needs;

2. select materials and suppliers in conjunction with procurement, and

3. develop production technology in manufacturing flow to manufacture and integrate

into the best supply chain flow for the product/market combination.

d) Manufacturing flow management process

The manufacturing process produces and supplies products to the distribution channels based

on past forecasts. Manufacturing processes must be flexible to respond to market changes and

must accommodate mass customization. Orders are processes operating on a just-in-time

(JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to

shorter cycle times, meaning improved responsiveness and efficiency in meeting customer

demand. Activities related to planning, scheduling and supporting manufacturing operations,

such as work-in-process storage, handling, transportation, and time phasing of components,

inventory at manufacturing sites and maximum flexibility in the coordination of geographic

and final assemblies postponement of physical distribution operations.

e) Physical distribution

This concerns movement of a finished product/service to customers. In physical distribution,

the customer is the final destination of a marketing channel, and the availability of the

product/service is a vital part of each channel participant's marketing effort. It is also through

the physical distribution process that the time and space of customer service become an

integral part of marketing, thus it links a marketing channel with its customers (e.g., links

manufacturers, wholesalers, retailers).

f) Outsourcing/partnerships

This is not just outsourcing the procurement of materials and components, but also

outsourcing of services that traditionally have been provided in-house. The logic of this trend

is that the company will increasingly focus on those activities in the value chain where it has

a distinctive advantage, and outsource everything else. This movement has been particularly

evident in logistics where the provision of transport, warehousing and inventory control is

increasingly subcontracted to specialists or logistics partners. Also, managing and controlling

this network of partners and suppliers requires a blend of both central and local involvement.

Hence, strategic decisions need to be taken centrally, with the monitoring and control of

supplier performance and day-to-day liaison with logistics partners being best managed at a

local level.

g) Performance measurement

Experts found a strong relationship from the largest arcs of supplier and customer integration

to market share and profitability. Taking advantage of supplier capabilities and emphasizing a

long-term supply chain perspective in customer relationships can both be correlated with firm

performance. As logistics competency becomes a more critical factor in creating and

maintaining competitive advantage, logistics measurement becomes increasingly important

because the difference between profitable and unprofitable operations becomes more narrow.

A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance

measurement realized improvements in overall productivity. According to experts, internal

measures are generally collected and analyzed by the firm including

1. Cost

2. Customer Service

3. Productivity measures

4. Asset measurement, and

5. Quality.

External performance measurement is examined through customer perception measures and

"best practice" benchmarking, and includes 1) customer perception measurement, and 2) best

practice benchmarking.

h) Warehousing management

As a case of reducing company cost & expenses, warehousing management is carrying the

valuable role against operations. In case of perfect storing & office with all convenient

facilities in company level, reducing manpower cost, dispatching authority with on time

delivery, loading & unloading facilities with proper area, area for service station, stock

management system etc.

Components of supply chain management are as follows: 1. Standardization 2. Postponement

3. Customization

Theories of supply chain management

Currently there is a gap in the literature available on supply chain management studies: there

is no theoretical support for explaining the existence and the boundaries of supply chain

management. A few authors such as Halldorsson Kitchen and Hult and Lavassani have tried

to provide theoretical foundations for different areas related to supply chain by employing

organizational theories. These theories include:

Resource-based view (RBV)

Transaction Cost Analysis (TCA)

Knowledge-Based View (KBV)

Strategic Choice Theory (SCT)

Agency Theory (AT)

Institutional theory (InT)

Systems Theory (ST)

Network Perspective (NP)

Materials Logistics Management (MLM)

Just-in-Time (JIT)

Material Requirements Planning (MRP)

Theory of Constraints (TOC)

Performance Information Procurement Systems (PIPS)

Performance Information Risk Management System (PIRMS)

Total Quality Management (TQM)

Agile Manufacturing

Time Based Competition (TBC)

Quick Response Manufacturing (QRM)

Customer Relationship Management (CRM)

Requirements Chain Management (RCM)

Available-to-promise (ATP)

and many more

However, the unit of analysis of most of these theories is not the system “supply chain”, but

another system such as the “firm” or the “supplier/buyer relationship”. Among the few

exceptions is the relational, which outlines a theory for considering dyads and networks of

firms as a key unit of analysis for explaining superior individual firm performance.

Supply chain centroids

In the study of supply chain management, the concept of centroids has become an important

economic consideration. A centroid is a place that has a high proportion of a country’s

population and a high proportion of its manufacturing, generally within 500 mi (805 km). In

the U.S., two major supply chain centroids have been defined, one near Dayton, Ohio and a

second near Riverside, California.

The centroid near Dayton is particularly important because it is closest to the population

center of the US and Canada. Dayton is within 500 miles of 60% of the population and

manufacturing capacity of the U.S., as well as 60 percent of Canada’s population. The region

includes the Interstate 70/75 interchange, which is one of the busiest in the nation with

154,000 vehicles passing through in a day. Of those, anywhere between 30 percent and 35

percent are trucks hauling goods. In addition, the I-75 corridor is home to the busiest north-

south rail route east of the Mississippi.

Tax efficient supply chain management

Tax Efficient Supply Chain Management is a business model which considers the effect

of Tax in design and implementation of supply chain management. As the consequence

of Globalization, business which is cross-nation should pay different tax rates in different

countries. Due to the differences, global players have the opportunity to calculate and

optimize supply chain based on tax efficiency legally. It is used as a method of gaining more

profit for company which owns global supply chain.

Supply chain sustainability

Supply chain sustainability is a business issue affecting an organization’s supply chain or

logistics network and is frequently quantified by comparison with SECH ratings. SECH

ratings are defined associal, ethical, cultural and health footprints. Consumers have become

more aware of the environmental impact of their purchases and companies’ SECH ratings

and, along with non-governmental organizations(NGOs), are setting the agenda for

transitions to organically-grown foods, anti-sweatshop labor codes and locally-produced

goods that support independent and small businesses. Because supply chains frequently

account for over 75% of a company’s carbon footprint many organizations are exploring how

they can reduce this and thus improve their SECH rating.

For example, in July, 2009 the U.S. based Wal-Mart corporation announced its intentions to

create a global sustainability index that would rate products according to the environmental

and social impact made while the products were manufactured and distributed. The

sustainability rating index is intended to create environmental accountability in Wal-Mart's

supply chain, and provide the motivation and infrastructure for other retail industry

companies to do the same.

More recently, the US Dodd-Frank Wall Street Reform and Consumer Protection Act signed

into law by President Obama in July 2010 contained a supply chain sustainability provision in

the form of the Conflict Minerals law. This law requires SEC-regulated companies to conduct

third party audits of the company supply chains, determine whether any tin, tantalum,

tungsten or gold (together referred to as conflict minerals is made of up ore mined/sourced

from the Democratic Republic of the Congo (DRC), and create a report (available to the

general public and SEC) detailing the supply chain due diligence efforts undertaken and the

results of the audit. Of course, the chain of suppliers/vendors to these reporting companies

will be expected to provide appropriate supporting information.

Components of supply chain management integration

The management components of SCM

The SCM components are the third element of the four-square circulation framework. The

level of integration and management of a business process link is a function of the number

and level, ranging from low to high, of components added to the link . Consequently, adding

more management components or increasing the level of each component can increase the

level of integration of the business process link. The literature on business process re-

engineering, buyer-supplier relationships, and SCM suggests various possible components

that must receive managerial attention when managing supply relationships. Lambert and

Cooper (2000) identified the following components:

Planning and control

Work structure

Organization structure

Product flow facility structure

Information flow facility structure

Management methods

Power and leadership structure

Risk and reward structure

Culture and attitude

However, a more careful examination of the existing literature leads to a more comprehensive

understanding of what should be the key critical supply chain components, the "branches" of

the previous identified supply chain business processes, that is, what kind of relationship the

components may have that are related to suppliers and customers. Bowersox and Closs states

that the emphasis on cooperation represents the synergism leading to the highest level of joint

achievement. A primary level channel participant is a business that is willing to participate in

the inventory ownership responsibility or assume other aspects of financial risk, thus

including primary level components. A secondary level participant (specialized) is a business

that participates in channel relationships by performing essential services for primary

participants, including secondary level components, which support primary participants.

Third level channel participants and components that support the primary level channel

participants and are the fundamental branches of the secondary level components may also be

included.

Consequently, Lambert and Cooper's framework of supply chain components does not lead to

any conclusion about what are the primary or secondary (specialized) level supply chain

components . That is, what supply chain components should be viewed as primary or

secondary, how should these components be structured in order to have a more

comprehensive supply chain structure, and how to examine the supply chain as an integrative

one.

Reverse supply chain is the process of managing the return of goods. Reverse logistics is

also referred to as "Aftermarket Customer Services". In other words, any time money is taken

from a company's warranty reserve or service logistics budget one can speak of a reverse

logistics operation.

Supply chain systems and value

Supply chain systems configure value for those that organize the networks. Value is the

additional revenue over and above the costs of building the network. Co-creating value and

sharing the benefits appropriately to encourage effective participation is a key challenge for

any supply system. Tony Hines defines value as follows: “Ultimately it is the customer who

pays the price for service delivered that confirms value and not the producer who simply adds

cost until that point

Global supply chain management

Global supply chains pose challenges regarding both quantity and value:

Supply and value chain trends

Globalization

Increased cross border sourcing

Collaboration for parts of value chain with low-cost providers

Shared service centers for logistical and administrative functions

Increasingly global operations, which require increasingly global coordination and

planning to achieve global optimums

Complex problems involve also midsized companies to an increasing degree,

These trends have many benefits for manufacturers because they make possible larger lot

sizes, lower taxes, and better environments (culture, infrastructure, special tax zones,

sophisticated OEM) for their products. Meanwhile, on top of the problems recognized in

supply chain management, there will be many more challenges when the scope of supply

chains is global. This is because with a supply chain of a larger scope, the lead time is much

longer. Furthermore, there are more issues involved such as multi-currencies, different

policies and different laws. The consequent problems include: 1. different currencies and

valuations in different countries; 2. Different tax laws, 3. Different trading protocols; 4. lack

of transparency of cost and profit.

ABSTRACT Indian industries due to globalization facing lot of competition, in order to protect the

business interest, every industry is trying to improve their process it could make the cheaper product with better quality. For that purpose industries are trying to redefine, reorganize and reengineering their traditional processes. More emphasis is given on the effectiveness of the whole supply chain rather than single function of the supply chain. Supply chain management is complex process of different function; involves so many issues at different levels. And many organized retail stores adopted six sigma concepts to reduce the cost, defect, cycle time reduction and to increase the customer relationship management, market growth share, productivity and product and service management.

The objective of present work is to find out the importance of logistics and supply chain management in organized retail markets and impact of logistics and supply chain management on organized retail markets. And to find out the problems areas in supply chain management on organized retail store. (Critical to customer, critical quality and voice of the customer)

In the organized retail market in India the role of supply chain is very important for the Indian customer demands at affordable prices a verity of product mix and it is ensure to the customers in all the various offering that company decides for its customer, be it cost, service, or the quickness in responding to ever changing taste of the customer.

KEYWORDS:- Supply chain management, organized retail store, customer, quality and six sigma. INTRODUCTION: Supply chain management is a topic of importance among the logistic managers and

researchers because it is a Consider with a competitive edge. Supply chain management deals with the management of materials, information and financial flows in a net work consisting of suppliers, manufactures, distributes and customers.From an analytical point of view a supply chain is simply a network of material processing cells with the characteristics such as supply, transformation and demand. Supply chain management is management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customer. Supply chain management spans all movement and storage of raw material work in process inventory, and finished goods from point of origin to point of consumption.

The success in this competitive and dynamic sector depends on achieving an efficient logistics and supply chain, which can be provided by professionals, as they combined the best systems and expertise to manage a ready flow of goods and services.

The retail boom promises to give an impetus to host of allied sectors and the logistics industry, as the back bone of the retail sector, stands to gain the maximum.

In India the logistics market is mainly thought to mean transportation. But the major elements of logistics cost for industries include transportation, warehousing etc., and other value added services such as packaging. The Logistics cost accounts of 13 percentage of GDP (Gross domestic product). The industry is currently on an upswing and is poised for a growth of 20 percentages in the coming years. 

With extension of retail supply chain will take on an increasingly important role. With the end consumer becoming more demanding and time conscious, the need for just in

time services is increasing. In retail where competition is intense and stakes are high, customer satisfaction is paramount .

India is witnessing changing life styles, increased incomes, the demographic variability's and vibrant democracy.  Indian retailing is expanding and is expected to reach at US $637 billions by 2015.  Modern retail is soon capturing 22% share in total retail by 2011 with the expansion of 12 millions outlets and provision of creating 1.5 millions jobs in 2 to 3 years.  The industry is playing vital role in the economic growth of the country.  The concept of shopping is moving in and around hypermarkets, supermarkets, and specialty stores and in other formats.

Retail industry is one of the key upcoming sectors in India contributing major to employment generation.  Retail in India is featured with street markets and convenience stores which accounts for 96% of retail business.  Most of the stores are very small with an area of less than 50 sqcm.  But the organized retail

Indian Middle Class 1984-85 By 2005< 10% of total population Approx 40%

Source NCAER

Organized retail which presently account for only 4-6 percent of the total market is likely to increase its share to over 30% by 2013.  it offers huge potential for growth in coming years.  India is becoming most favored retail destination in the world.

Generating employment for some 2.5 million people in various retail operations and over 10 million additional workforce in retail support activities including contract production and processing, supply chain and logistics, retail real estate development and management etc.; the retail sector is growing a scorching pace of about 37 percent in 2007 and expected to grow by 42 per cent in 2008.  With this enormous growth, the retail sector is also facing challenges n the fronts of escalating real estate cost, scarcity of skilled workforce and structured supply of merchandise.

IMPORTANCE OF SUPPLYCHAIN AND LOGISTICS MANAGEMENT One of the most important challenge in organized retail in India is faced by poor

supply chain and logistics management.  The importance can be understood by the fact that the logistics management cost component in India is as high as 7% - 10%  against the global average of 4% - 5% of the total retail price.  Therefore, the margins in the retail sector can be improved by 3% to 5% by just improving the supply chain and logistics management.

The supply chain management is logistics aspect of a value delivery chain.  It comprises all of the parties that participate in the retail logistics process: Manufacturers, wholesalers, Third Party Specialists like Shippers, Order Fulfillment House etc. and the Retailer.  Here, logistics is the total process of planning, implementing and coordinating the physical movement of merchandise from manufacturer to retailer to customer I the most timely, effective and cost efficient manner possible.  Logistics regards order processing and fulfillment, transportation, warehousing, customer service and inventory management a interdependent functions in the value delivery chain.  It oversees inventory management decisions as items travel through a retail supply chain.  If a logistics system works well, the retail reduces stock outs, hold down inventories and improve customer service – all at the same time.

Logistics and supply chain enables an organized retailer to move or store products more effectively, efficient logistics management not only prevents needless

movement of goods, vehicles transferring products back and forth; but also frees up storage space for more productive use.

Retail analysts say on-time order replenishments will become even more critical once the Wal-Mart/Bharati combine begins operations – the American retailer works almost entirely on cross-docking and is likely to demand higher service levels, including potential levies for delays in shipment.

The efficiency and effectiveness of supply chain and logistics management can also be understood by the fact that modern retail stores maintain lower inventories are kept; while in a modern retail store like hyper city its nine days and its under two weeks for Food Bazaar.  Now, it is beneficial for both the manufacturer well as the retailer.  If we go through the following food supply chain in India, we find that a lot can be improved by maintaining the supply chain and logistics.

OBJECTIVES OF RESEARCH:

1. To understand the importance of logistics and supply chain management in organized retail markets.

2. To study on impact of logistics and supply chain management on organized retail market.

Food Supply Chain in India In India, about 60 percent of food quality is lost in the supply chain from the farm to

the final consumer.  Consumers actually end up paying approximately about 35 percent more than which they could be paying if the supply chain was improved, because of wastage as well as multiply margins in the current supply structure.  The farmer in India gets around 30 percent of what the consumer pays at the retail store.  Compare this with the situation obtaining in the USA, where farmers can receive up to 70 percent of the final retail price and wastage levels are as low as 4 to 6 percent.  One can easily understand the benefits that could be generated from emulating those practices and tapping that expertise for the supply chain in India.

As supply chain Management involves procuring the right inputs (raw materials, components and capital equipments); converting them efficiently into finished products and dispatching them to the final destinations; there is a need to study as to how the company's suppliers obtain their inputs. The supply chain perspective can help the retailers identify superior suppliers and distributors and help them improve productivity, which ultimately brings down the customers costs. At the same time, Market logistics helps planning the infrastructure to meet demand, then implementing and controlling the physical flows of material and final goods from point of origin to points of use, to meet customer requirements at a profit.

Till now most retailers in India have invested majorly into the front end, but relatively little on the back end and supply chain. Even in countries like the USA, Germany and England, where organized retail is highly developed; supply chain efficiency is a major concern. The nature of retail sector in India is different from other countries around the world. The organized retail sector in India is highly fragmented and there are huge inefficiencies in the supply chain.

The most important part of retailing business is to find a balance between investing in front-end and back-end operations. The channel dynamics is going to change over next couple of years as the retailers start growing in size and their bargaining power is likely to increase. Probably that would bring some kind of mutual understanding between manufactures and retailers to develop strong supply chain network. In such a

scenario, both the existing operators and new operators must put collaborative efforts to phase out inefficiencies in the supply chain network.

Now, let us try to find out what efforts are being taken up by the big retailers in India like Future Group with retail stores like Big Bazaar and Pantaloons, Reliance Retail and Wal-Mart & Bharti to improve the efficiency and effectiveness of supply chain and logistics. We will also try to find out the changed role of Agriculture Produce Marketing Cooperatives and third party sourcing firms. 

Reliance Fresh Reliance Retail is also going to open one store for every 3,000 families within a radius

of 2 km across all locations by 2011.  The company is competing directly with the large number of traditional local provision stores.  Reliance Retail is either going to set up new stores in the identified areas or take over existing stores.  The company has already done that in Mumbai and other cities.

Of the four million sq ft of retail space to be created under the "Reliance Fresh" brand (for groceries), million will through acquisitions.  The retailer is also moving into laundry, personal care and apparel product lines, in which it plants to launch private labels.  Reliance is planning to roll out its specialty form stores this year, beginning with consumer durables, for which it has struck sourcing deals with companies in Hong Kong, the Chinese mainland and with Videocon in India.

To strengthen its links with farmers, the company is setting up integrated agri-retail business centres, which include three processing and distributing centres, 51 retail outlets for farmers and 75 rural business hubs, all with an investment of US $445 million.  Many companies, looking at the retail boom in food and grocery, are setting up ventures to help retailers source these goods.

Reliance Logistics Ltd part of Reliance Industries Ltd., currently handles Reliance Retail's logistics services.

Wal-Mart and Bharati The success of Wal-Mart is well known all across the world.  One of the major factors

behind their success is the right implementation of supply and logistics management.  Now the same supply chain and logistics management take a front seat here and that's why Wal-Mart is coming to India in a joint venture with Bharti Group.  Here, Wal-Mart is going to manage the back end operation, while Bharti will manage the front end operation.

Wal-Mart has also started that it would replicate its global supply chain model in India, while taking into account the unique feature of the Indian market.  They are also going to emphasize on local sourcing of goods.  Besides sourcing locally, Wal-Mart, through its international operations is also in a position to source globally.    The company is set to roll out its first set of stores by the first quarter of 2008, in cities that have a population of one million.  Wal-Mart claims it will take 35% of the Indian retail market by 2015.

It is the sheer importance of the logistics management that Wal-Mart's fully-owned logistics arm Gazel has already confirmed its India foray and is going to look after the Wal-Mart and Bharti retail venture.  They are closely study various logistics providers like Radhakrishnan Foods, before they finally closed on its India model.  Again, Bharti Enterprises is directly negotiating with the rail authorities instead of negotiating with a logistics provider.

SUMMARY OF FINDINGS: This study was conducted only in  Reliance fresh ,Wal- Mart and Bharti. It has been

observed that Reliance fresh strengthen its logistics and supply chain of products and

services with their farmers (integrated Agri Retail Business centres) Wal-Mart is entering into India through the help of Bharti group.

CONCLUSION: 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.