By Rekha R KiniSandeep SSanthosh KrishnanSMS Cusat

Supermarket definition Quality definition Customer expectations Quality incorporated in design Logistics & CSI Quality management tools

These are retail formats which are large, low cost, low margin, high volume, self-service operations designed to meet the needs for food, groceries & other non food items.

This formats controls more than 30% of the grocery market in many countries

A typical supermarket has a wide array of more than 20,000 SKU’s and has the distinction of selling items below their MRP(Manufacturers Recommended Price)

“Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.”

Varkeys Nilgiris Reliance More 9/10 Big bazaar Mithra Margin free Spencers Supply co Subhiksha etc…………………..

1. Reasonable prices and sales promotions and offers

2. Availability of required goods3. Wide assortment/ variety4. Availability of latest items in the market5. Easy movement6. Proper directions & signage inside the

store(Quick discovery)7. Cleanliness8. No adulteration in quantity as well as

quality (food safety) 9. Speed & ease of buying exercise (Timely

Billing)

10. Combination of related goods11. Quality of individual goods12. Value for money13. Ambience14. Freedom of choice15. No expired items 16. Facilities like toilet, water cooler etc17. Service by staff- behavior, helpfulness,

courteousness, etc.18. Safety- fire safety: sprinklers etc.

Layout Location of store Space planning Visual Merchandising Planogram Signage Ambience Pricing/promotion strategies Assortment

The CSI model is a cause-and-effect model with indices for drivers of satisfaction on the left side (customer expectations, perceived quality, and perceived value), satisfaction (CSI) in the center, and outcomes of satisfaction on the right side (customer complaints and customer loyalty, including customer retention and price tolerance).

Customer ExpectationsCustomer expectations is a measure of the customer's anticipation of the quality of a company's products or services.  Expectations represent both prior consumption experience, which includes some non experiential information like advertising and word-of-mouth, and a forecast of the company's ability to deliver quality in the future.

Perceived QualityPerceived quality is a measure of the customer's evaluation via recent consumption experience of the quality of a company's products or services. Quality is measured in terms of both customization, which is the degree to which a product or service meets the customer's individual needs, and reliability, which is the frequency with which things go wrong with the product or service.

Perceived ValuePerceived value is a measure of quality relative to price paid. Although price (value for money) is often very important to the customer's first purchase, it usually has a somewhat smaller impact on satisfaction for repeat purchases.

Customer ComplaintsCustomer complaints are measured as a percentage of respondents who indicate they have complained to a company directly about a product or service within a specified time frame. Satisfaction has a negative relationship with customer complaints, as the more satisfied the customers, the less likely they are to complain.

Customer LoyaltyCustomer loyalty is a combination of the customer's professed likelihood to repurchase from the same supplier in the future, and the likelihood to purchase a company’s products or services at various price points (price tolerance).  Customer loyalty is the critical component of the model as it stands as a proxy for profitability.

While food logistics is similar in many ways to logistics as a whole, there are some important differences, Safety. FreshnessTemperature variations

Brand image and identity  Finally, while some food products have higher

margins, many others have very low margins. Low margins coupled with  increased competitive pressures mean that wringing every excess dollar out of the food chain becomes crucial  --  so we can expect to see even more collaboration and creative use of technology in the years to come.

INBOUND LOGISTICS OPTIMISATION

Collaborative Planning, Forecasting and Replenishment (CPFR) is a concept that aims to enhance supply chain integration by supporting and assisting joint practices..

CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain.

Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information.

This allows for continuous updating of inventory and upcoming requirements, making the end-to-end supply chain process more efficient.

Efficiency is created through the decrease expenditures for merchandising, inventory, logistics, and transportation across all trading partners

In the retail industry the retailer typically fills the buyer role, a manufacturer fills the seller role, and the consumer is the end customer

The consumer drives demand for goods and services while the retailer is the provider of goods and services. The manufacturer supplies the retailer stores with product as demand for product is pulled through the supply chain by the end user, being the consumer.

Visual managementVisual merchandising, planogram are

application visual management tools KanbanVendor managed inventory of Wal-mart is

an example of kanban Poka-YokeThe fire sprinkler inside the supermarket is

based on poka yoke principle

5s House keeping consists of following partSortingSet in orderSweeping/CleanlinessStandardizingSustaining discipline