PROJECT REPORT

MBA (MMPP001)

“LOGISTICS MANAGEMENT IN RETAIL INDUSTRY:

A CASE STUDY ON
V-MART RETAIL LIMITED”

SUBMITTED TO

INDIRA GANDHI NATIONAL OPEN UNIVERSITY

NEW DELHI-110068

“In the partial fulfilment of the requirements for qualifying Master

of Business Administration (MBA)”

UNDER THE GUIDANCE OF

Dr. VISHWANATH BANERJIE

SUBMITTED BY: AJAY BUTOLA

ENROLLMENT NO: 2251737915
PROGRAMME: MBA
REGIONAL CENTRE: DEHRADUN(31)
STUDY CENTRE CODE: 2705

[1]
 BRIEF TABLE OF CONTENT
SR.NO. CONTENT PAGE NO.

1 ANNEXURE -I NA
(External
(Approval Letter) Attached)

2 ANNEXURE -II NA
(External
(Approved Performa) Attached)

3 ANNEXURE -III NA
(External
(Biodata of Supervisor) Attached)

4 ANNEXURE -IV 3
(Certificate Of Originality)

5 Acknowledgement 4

6 Copy Of The Synopsis 5

7 Detailed Table Of Content 6-7

8 Project Report/Title 8-92

[2]
 CERTIFICATE OF ORIGINALITY

This is to certify that the project titled LOGISTICS MANAGEMENT IN RETAIL

INDUSTRY: A CASE STUDY ON V-MART RETAIL LIMITED is an original
work of the student and is being submitted in partial fulfilment for the award of the
Master’s Degree in Business Administration of Indira Gandhi National Open
University. This report has not been submitted earlier either to this University or to
any other University/Institution for the fulfilment of the requirement of a course of
study.

SIGNATURE OF SUPERVISOR SIGNATURE OF STUDENT

Place: Place:

Date: Date:

[3]
 ACKNOWLEDGEMENT

I extend my heartfelt gratitude to all those who have contributed to the successful
completion of my MBA project titled "Logistics Management in Retail Industry: A
Case Study on V-Mart Retail Limited."

I am deeply indebted to Dr. Vishwanath Banerjie, my esteemed guide at IGNOU,

whose guidance, support, and scholarly insights have been invaluable throughout this
endeavor. Dr. Banerjie's expertise and encouragement have significantly enriched the
quality of this research, and I am truly grateful for his mentorship.

I would like to express my sincere appreciation to the management team of V-Mart

Retail Limited for their cooperation and assistance. Their willingness to share their
knowledge and resources has been pivotal in conducting this case study effectively.

I extend my thanks to the employees and staff of V-Mart Retail Limited who
generously participated in interviews and provided valuable insights into the logistics
management practices within the organization. Their cooperation and candid
feedback have been instrumental in shaping the findings of this study.

I am also thankful to my colleagues and peers for their support, encouragement, and
constructive feedback throughout the research process. Their perspectives and
discussions have been instrumental in refining the scope and methodology of this
project.

Lastly, I would like to acknowledge the unwavering support of my family and friends.
Their encouragement, patience, and understanding have been a constant source of
motivation during this academic journey.

To all those mentioned above, and to anyone else who has contributed in any way, I
offer my heartfelt thanks. Your support has been instrumental in the successful
completion of this project.

[4]
COPY OF
SYNOPSIS
AND
APPROVED
PERFORMA

[5]
D I S S E R TAT I O N
TABLE OF CONTENTS
List of Abbreviations 09

Abstract 10

Chapter 1 Introduction 11-24

Statement of the Problem 15

Rationale of the Study 16

Objectives of the Study 17

V-Mart Retail Overview 18

Background of Retail Industry in India 19

Limitations of the Study 24

Chapter 2 Retailing and Logistics 25-42

26
Retailing And Logistics

Logistics and supply chain transformation 30

0
Supply chain management 35

Chapter 3 Research Methodology 43-57

Research Purpose 46

Research Design 49

Case Study 51

Collection of Data 52

Data Analysis 55
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D I S S E R TAT I O N
TABLE OF CONTENTS

Chapter 4 Result and discussion 57-69

Data analysis and interpretations 58

Findings 66

Positive Findings 67

Negative Findings 68

Chapter 5 Summary and conclusion 70-79

Summary and conclusion 71

73
Recommendations
75
Limitations

Expected contribution of the study 77

Directions for future research 78

Chapter 6 References and Bibliography 80-84

Chapter 7 Questionnaire 85-91

[7]
 Project
Report
“LOGISTICS MANAGEMENT IN RETAIL
INDUSTRY: A CASE STUDY ON V-MART
RETAIL LIMITED”

[8]
 LIST OF ABBREVIATIONS AND ACRONYMS

et al. - And others

INR – Indian Rupee

ISO – International Organization for Standardization

ERP – Enterprise Resource Planning

USD – United States Dollar

TQM – Total Quality Management

R&D – Research & Development

HRD – Human Resource Development

MIS – Management Information System

IR – Investor Relations

Q.C. Tools – Quality Control Tools

PDSA – Plan-Do-Study-Act

MS - Microsoft

TPM – Total Productive Maintenance

MDP – Management Development Program

5S – Sorting, Straitening, Systematic Cleaning, Standardizing,

ESOP – Employee Stock Ownership Plan

i.e. – that is

[9]
 ABSTRACT

The retail industry operates in a dynamic environment, where effective logistics

management plays a pivotal role in ensuring operational efficiency and customer
satisfaction. This study delves into the logistics management practices within the
context of V-Mart Retail Limited, a prominent player in the retail sector. Through a
comprehensive case study approach, this research aims to analyze the strategies,
challenges, and innovations adopted by V-Mart Retail Limited in managing its
logistics operations.

The study begins by providing an overview of the retail industry landscape,

highlighting the significance of logistics management in enhancing supply chain
performance and meeting customer demands. Subsequently, it explores the specific
logistics management practices employed by V-Mart Retail Limited, encompassing
aspects such as inventory management, transportation, warehousing, and distribution.

Furthermore, the case study investigates the challenges encountered by V-Mart Retail
Limited in its logistics operations, including issues related to last-mile delivery,
inventory optimization, and technology integration. It also examines the innovative
solutions and best practices implemented by the company to address these challenges
and improve overall logistics efficiency.

The findings of this research contribute to a deeper understanding of logistics

management in the retail industry, offering insights that can benefit both practitioners
and academics. By examining the strategies and experiences of V-Mart Retail
Limited, this study provides valuable lessons and recommendations for enhancing
logistics performance and competitiveness in the retail sector.

[10]
 Chapter 1

Introduction

[11]
 INTRODUCTION

Supply chain management addresses the management of materials and information

across the entire chain from suppliers to producers, distributors, retailers, and

customers. Traditionally, each company performs purchasing, production and

marketing activities independently, so that it is difficult to make an optimal plan for

the whole chain. In recent years, it has been realized that actions taken by one

member of the chain can influence all others in the chain. More and more companies

have gradually recognized that each of them serves as part of a supply chain against

other supply chains in terms of competition, rather than as a single firm against other

individual firms. Since 1990, as the information technology has continuously

developed, it is possible to coordinate all organizations and all functions involved

in the whole chain. Consequently, supply chain management has been increasingly

receiving attention from both academic researchers and practitioners. A supply

chain is a network of suppliers, manufacturing plants, warehouses, and distribution

channels organized to acquire raw materials, convert these raw materials to finished

products, and distribute these products to customers. The efficient design and

operation of supply chains is one of the important components of planning activities

in a manufacturing firm. The strategic level supply chain planning involves deciding

the configuration of the network, i.e., the number, location, capacity, and technology

of the facilities. The tactical level planning of supply chain operations involves

deciding the aggregate quantities and material flows for purchasing, processing, and

distribution of products. The strategic configuration of the supply chain is a key

[12]
factor influencing efficient tactical operations, and therefore has a long lasting

impact on the firm. Furthermore, the fact that the supply chain configuration

involves the commitment of substantial capital resources over long periods of time

makes the supply chain network design problem an extremely important one.

(Tjendera, et al., 2005)

SCM is a network of the logistics systems and related activities of all of the

individual companies/organizations that are a part of a particular supply chain. It can

be traced to the 1980s and it was not until the 1990s that this term captured the

attention of senior level management in organizations. A supply chain has been

recognized as an important approach to make organizations more globally

competitive and help to increase their market share with consequent improvements

in shareholder value. (Coyle, 2003) It benefits from a variety of concepts that were

developed in several different disciplines, such as marketing, information systems,

economics, system dynamics, logistics, operations management, and operations

[13]
research. There are many concepts and strategies applied in designing and managing

supply chains.

The expanding importance of supply chain integration presents a challenge to

research to focus more attention on supply chain modeling (Tayur, et al., 1999).

Based on the emerging distinction between SCM and logistics, in October 1998 the

Council of Logistics Management announced a modified definition of logistics. The

modified definition declares the Council’s position that logistics management is

only a part of SCM. (Lambert and Cooper, 2000) Ayers (2001) shows that there is

much cost saving in logistic processes and one of the potential moves is to consider

logistics as part of the Supply Chain. The next definition can be easily learned:

logistics is that part of the supply chain process that plans, implements, and controls

the efficient, effective flow and storage of goods, services, and related information

from the point of origin to the point of consumption in order to meet customers‟

requirements.

Logistics means the integration of two or more activities for the purpose of planning,

implementing and controlling the efficient flow of materials and products from the

point of origin to the point of consumption. Logistics involves the integration of

information, transportation, inventory, warehouse, material handling, and

packaging. Depending upon its origins, logistics is often seen as begin synonymous

with distribution activities, either the physical distribution of product, SCM,

pipeline management, or supply and transport. Whichever description is used, the

basic definition of logistics is the same; namely, getting the right goods to the correct
[14]
place at the time and in the condition required by the customers (Attwood, Peter and

Nigel Attwood, 1992). Generally speaking, the most common form of logistics has

traditionally been based on moving large shipments of items in bulks to select

strategic customers in a few geographic locations. Shipments have also traditionally

been tracked by container, pallet, or other unit of bulk measurement, not by

individual item or parcel. (Bayles, 2001)

STATEMENT OF THE PROBLEM

This study focuses on only retailing industry and retailing convenience stores‟

perspective in India. The subject will be` studied by using of V-Mart as a reference.

Retailing and distribution are concerned with product availability and retailers must

be concerned with the flows of product and information into and through their

companies in order to make products available to consumers. According to Fernie

and Sparks (1998), it had been revolutionary in the 1980s in the history of logistics

support to retail stores. The first step changed in managing the logistics function;

retailers moved from direct store deliveries (DSD) to centralization of stock at

regional distribution centers (RDCs). Fernie and Spark (1998) state that

technologies and IT were developed to facilitate logistical efficiencies in the

distribution network and those technologies were either material handling

(composite distribution, unitization) or of and IT nature which can improve the flow

of information through the supply chain . Therefore technology and IT are

important. The concern in retail and distribution are with the structure and

[15]
management logistics channels. The management task is concerned with the

element of distribution mix (for example storage facilities and communication, etc),

which have to be integrated for successful retail distribution (Sparks, 1998). The

researcher will study and focus on the mentioned information which surely affects

retail business (in this research which is retail convenience business) in one way or

another.

RATIONALE BEHIND THE STUDY

India has a relatively inferior infrastructure and supply chain coordination in the

retail business. Retailing and distribution are concerned with product availability

and retailers must be concerned with the flows of product and information into and

through their companies in order to make products available to consumers. Logistics

support to retail stores was the first step that changed t h e m a n a g e m e n t of the

logistics function; retailers moved from direct store deliveries (DSD) to

centralization of stock at regional distribution centers.

Latest technologies and IT have developed and facilitated logistical efficiencies in

the distribution network. IT improved the flow of information through the supply

chain. The concern in retail and distribution are with the structure and

management logistics channels. The management task is concerned with the

element of distribution mix (for example storage facilities and communication, etc),

which have to be integrated for successful retail distribution. Thus, to analyze

various processes in the supply chain management in the light of latest technological

developments and IT revolution in the country makes a good sense.

[16]
 This study focused on only retailing industry and retailing convenience stores‟

perspective in India. The subject was studied by using V-Mart in Delhi as a

reference. The purpose of this research is to, from retailing industry and retailing

convenience store’s perspective, identifies and describe how V-Mart manages and

operates its retail convenience business focusing on several aspects; strategic fits,

distribution and IT, which support the logistics activities. It explored the competitive

advantage that originates from those actions.

OBJECTIVES OF THE STUDY

Following objectives are formulated for the proposed study:

• To identify and describe how V-Mart manage and operate its retail convenience

business in Delhi.

• To analyze the strategies, distribution and IT support in V-Mart stores in Delhi.

• To explore the competitive advantage of V-Mart products in the market.

• To find out how supply chain management is done at V-Mart stores in Delhi.

• From retailing industry and retailing convenience store’s perspective analyze the

operations of V-Mart store in Delhi.

• To examine how logistics activities are handled and in what essence have they

been regarded to in V-Mart.

[17]
 V-MART RETAIL OVERVIEW

V-Mart Retail is an Indian retail brand that runs chains of consumer retail

department stores. The brand is wholly owned by V- Mart Retail Limited and is

operated by its subsidiary, V-Mart Retail, which is headquartered in India. V-Mart

is a complete family fashion store that provides its customers true value for their

money. V-Mart offers fashion garments at down-to-earth prices and over a period

of time has emerged as the destination of choice for bargain hunters and the

fashionable alike. First incorporated as Varin Commercial Private Limited under the

Companies Act in 2002 in West Bengal. Then in 2003, we opened our maiden store

in Ahmedabad (Gujarat). In the Year 2004 we have opened our first store in capital

city, Delhi.

Further in 2006 we have crossed 1 lac sq.ft. retail space and subsequently renamed

to V- Mart Retail Private Limited. In the year of 2008, we hit the base by registering

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V-Mart Retail as a public limited entity and also crossed the turnover of 1,000

million Rs. As the time passes by we took the shape of a renowned family brand

that caters the needs of whole family by offering high quality retail products. Along

with growing customers, we achieved a turnover of over Rs 2,000 million in 2011-

12 In the Year 2012 we have crossed the retail space of 5 lac Sq. Ft.

2013 -V-Mart Retail Ltd has opened a new store located at F.D.R.A Plaza, Opp.

Sanjay Cinema, Malipur Road, Shahzadpur, Akbarpur, Uttar Pradesh. -V Mart

Retail has opened 86th Store at Jhansi, Uttar Pradesh. -V Mart Retail has opened

65th Store at Varansi, Uttar Pradesh. -V Mart Retail Opening its 84th Store at

Fatehpur, Uttar Pradesh. 2014 -V Mart Retail has Opened 92nd Store at Patna City,

Bihar. -V Mart Retail has Opened 97th Store at Ranchi, Jharkhand.

BACKGROUND OF RETAIL INDUSTRY IN INDIA

Retailing in India is one of the pillars of its economy and accounts for 14 to 15

percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and

one of the top five retail markets in the world by economic value. India is one of the

fastest growing retail markets in the world, with 1.2 billion people. As of 2013,

India's retailing industry was essentially owner manned small shops In 2010, larger

format convenience stores and supermarkets accounted for about 4 percent of the

industry, and these were present only in large urban centers. India's retail and

logistics industry employs about 40 million Indians (3.3% of Indian population).

Until 2011, Indian central government denied foreign direct investment (FDI) in

[19]
multi- brand retail, forbidding foreign groups from any ownership in supermarkets,

convenience stores or any retail outlets. Even single-brand retail was limited to 51%

ownership and a bureaucratic process.

In November 2011, India's central government announced retail reforms for both

multi- brand stores and single-brand stores. These market reforms paved the way

for retail innovation and competition with multi-brand retailers such as Walmart,

Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.

The announcement sparked intense activism, both in opposition and in support of

the reforms. In December 2011, under pressure from the opposition, Indian

government placed the retail reforms on hold till it reaches a consensus.

In January 2012, India approved reforms for single-brand stores welcoming anyone

in the world to innovate in Indian retail market with 100% ownership, but

imposed the requirement that the single brand retailer source 30 percent of its goods

from India. Indian government continues the hold on retail reforms for multi-brand

stores. In June 2012, IKEA announced it had applied for permission to invest $1.9

billion in India and set up 25 retail stores. An analyst from Fitch Group stated that

the 30 percent requirement was likely to significantly delay if not prevent most

single brand majors from Europe, USA and Japan from opening stores and creating

associated jobs in India.

On 14 September 2012, the government of India announced the opening of FDI in

multi- brand retail, subject to approvals by individual states. This decision was

[20]
welcomed by economists and the markets, but caused protests and an upheaval in

India's central government's political coalition structure. On 20 September 2012, the

Government of India formally notified the FDI reforms for single and multi-brand

retail, thereby making it effective under Indian law. On 7 December 2012, the

Federal Government of India allowed 51% FDI in multi-brand retail in India. The

government managed to get the approval of multi-brand retail in the parliament

despite heavy uproar from the opposition (the NDA and leftist parties). Some states

will allow foreign supermarkets like Walmart, Tesco and Carrefour to open while

other states will not.

MAJOR PLAYERS IN THE INDUSTRY

The booming Indian retail industry had transformed greatly from 1996 to 2013,

particularly with the emergence of organized retailers from previously small,

unorganized family-owned retail formats. From real estate companies to venture

capitalists, many businesses were investing in retail infrastructure. As a

consequence, the Indian retail sector was undergoing a huge revamping exercise.

It was estimated that an annual US$3 billion in capital expenditure would finance

the growth of organized retail. Traditional markets were increasingly being replaced

by new formats (specialty stores, supermarkets, hypermarkets and departmental

stores). This resulted in the development of a mall culture and the rapid emergence

of malls that offered food, entertainment and shopping in one place. With 325

departmental stores, 1,500 supermarkets and 300 malls under construction, the

[21]
sector was going through a phase of spectacular growth. By the end of 2008, it was

expected that approximately 9.29 million square meters of quality shopping centers

would have been built. Major local retailers planned massive Pantaloon planned

to have 30 million square feet by 2015; Reliance planned to invest US$5.8 billion

on multiple retail formats by 2015; and Lifestyle intended to invest more than

US$87.6 million over a five-year period to further develop its Home & Lifestyle

Centers and Max Hypermarkets. Other important players that announced aggressive

plans in retailing were RPG Group, Aditya Birla Group and Tata Group. Most of

these domestic companies‟ operations were quite different from those of Wal-Mart.

Spencer’s Retail, owned and operated by R.P. Goenka (chairman of RPG Group),

was one of the oldest multi-brand retail players in the country. In 2007, Spencer’s

Retail invested about US$194 million in its flagship retail venture. RPG Group

announced further investments of over US$58.3 million to expand its smaller retail

chains operating under the brand names RPG Cellucom, Book and Beyond, and

Music World. Spencer’s Retail was one of the country’s fastest-growing retailers

dealing in books, lifestyle products, electronics, fashion, apparel and food. Under

four formats (Spencer’s Express, Spencer’s Daily, Spencer’s Super and Spencer’s

Hyper), the company operated 290 stores in 32 cities across the country and

occupied a retail space of over 55,740 square meters. Women were the main target

customers for Spencer’s Retail. The new small- format businesses offered Indian

and international food in pre-cooked, semi-cooked and ready-to-eat styles.

[22]
Another important Indian retailer that had big plans for the country was Reliance

Industries Limited (“RIL”). It intended to have a pan-India presence with different

formats, including discount stores, malls, supermarkets, hypermarkets and specialty

stores. The company wanted to open stores in more than 700 large cities by 2011,

stocking products ranging from food and groceries to consumer durables, and also

providing financial and travel-related services. One of its focuses was on selling

luxury brands to the growing number of rich Indians. In addition, the company was

building a robust supply chain infrastructure spanning the entire country. Out of the

total capital expenditure of US$4.86 billion set aside for the venture, RIL planned

to spend US$1.94 billion on its supply chain, indicating the growing importance of

a stable back end for retail operations. To support this, the company had its own

fleet of both trucks and cargo planes. Reliance Retail Limited (“RRL”), a subsidiary

of RIL, was targeting a sales turnover of US$17.5 billion by 2010. The company

already had 30,000 people on its payroll, of which some had previously worked at

Wal-Mart, Carrefour or Tesco. Senior executives from Electrolux Kelvinator,

Unilever, Spencer’s, Coca-Cola, Pantaloon Retail, Indus League and McDonald’s

were said to have also joined RRL. Intensifying competition, rising salaries and

poaching of key executives were likely to inflate costs at Pantaloon Retail, Shoppers

Stop and other organized retailers. Meanwhile, Tesco and Carrefour were waiting

patiently while proactively targeting local companies to become partners. It was

believed that Carrefour planned to invest US$100 million initially and that it wanted

to start operations in Delhi. Some others, such as South Africa’s Shop Rite and
[23]
 Metro AG from Germany, had already arrived in India to set up cash-and-carry

businesses that supplied caterers, restaurants, retailers and other businesses.

LIMITATIONS OF THE STUDY

• The selected case study is a convenience store chain, V-Mart in Delhi; therefore, it

may mainly reflect norms and practices considerably within the firm’s environment.

• The convenience store management policies on certain areas normally differ at each

location since they are tightly tied to local customer needs. It could then give a

deviated data from the retail convenience store in other firms or in other states.

Hence, the results cannot be generalized.

• The time frame of the study is limited.

• The data collected may have the biased opinion of the respondents.

• The V-Mart management may not reveal the whole information due to secrecy

considerations.

[24]
 Chapter 2

RETAILING AND
LOGISTICS

[25]
 RETAILING AND LOGISTICS

Retailing and logistics are concerned with product availability. Many have

described this as „getting the right products to the right place at the right time.

Unfortunately, however that description does not do justice to the amount of effort

that has to go into a logistics supply system and the multitude of ways that supply

systems can go wrong. The very simplicity of the statement suggests logistics is an

easy process. As the boxed example shows, problems and mistakes can be all too

apparent. The real management trick‟ is in making logistics look easy, day in and

day out, whilst reacting to quite volatile consumer demand.

For example, if the temperature rises and the sun comes out in an atypical Jammu

summer, then demand for ice-cream, soft drinks and even salad items rises

dramatically. How does a retailer make sure they remain in stock and satisfy this

transient demand? Or we might think about Valentine’s Day, when demand for

certain products in the days before increases exponentially. If a retailer stocks

Valentine’s cards and demand does not materialize, then the retailer has stock that

will not sell. There is little demand for Valentine’s cards on 15 February. While

over-stocks in this case will not perish, the cost of their storage and handling for

the intervening year can be considerable.

The examples above demonstrate that retailers must be concerned with the flows of

product and information both within the business and in the wider supply chain. In

order to make products available retailers have to manage their logistics in terms

of product movement and demand management. They need to know what is selling
[26]
 in the stores and both anticipate and react quickly to changes in this demand. At the

same time, they need to be able to move less demand-volatile products in an efficient

and cost-effective manner.

The logistics management task is therefore initially concerned with managing the

components of the „logistics mix‟. We can identify five components:

• Storage facilities: these might be warehouses or distribution centers or simply

the stock rooms of retail stores. Retailers manage these facilities to enable them to

keep stock in anticipation of or to react to, demand for products.

• Inventory: all retailers hold stock to some extent. The question for retailers is

the amount of stock or inventory (finished products and/or component parts) that

has to be held for each product, and the location of this stock to meet demand

changes.

• Transportation: most products have to be transported in some way at some stage

of their journey from production to consumption. Retailers therefore have to

manage a transport operation that might involve different forms of transport,

different sizes of containers and vehicles and the scheduling and availability of

drivers and vehicles.

• Unitization and packaging: consumers generally buy products in small

quantities.

They sometimes make purchase decisions based on product presentation and

packaging. Retailers are concerned to develop products that are easy to handle in
[27]
logistics terms, do not cost too much to package or handle, yet retain their selling

ability on the shelves.

• Communications: to get products to where retailers need them, it is necessary

to have information, not only about demand and supply, but also about volumes,

stock, prices and movements. Retailers have thus become increasingly concerned

with being able to capture data at appropriate points in the system and to use that

information to have a more efficient and effective logistics operation.

It should be clear that all of these elements are interlinked. In the past they were

often managed as functional areas or „silos‟, and while potentially optimal within

each function, the business as a whole was sub-optimal in logistics terms. More

recently the management approach has been to integrate these logistics tasks and

reduce the functional barriers. So, if a retailer gets good sales data from the

checkout system, this can be used in scheduling transport and deciding levels and

locations of stock holding. If the level of inventory can be reduced, perhaps fewer

warehouses are needed. If communications and transport can be linked effectively,

a retailer can move from keeping stock in a warehouse to running a distribution

centre which sorts products for immediate store delivery: that is, approaching a

Just-In-Time system. Internal integration has therefore been a major concern.

It should also be clear, however, that retailers are but one part of the supply system.

Retailers are involved in the selling of goods and services to the consumer. For this

they draw upon manufacturers to provide the necessary products. They may

outsource certain functions such as transport and warehousing to specialist logistics

[28]
services providers. Retailers therefore have a direct interest in the logistics systems

of their suppliers and other intermediaries. If a retailer is effective, but its

suppliers are not, errors and delays in supply from the manufacturer or logistics

services provider will impact the retailer and the retailer’s consumers, in terms of

either higher prices or stock-outs (no products available on the store shelves). If a

retailer can integrate effectively its logistics system with that of its suppliers, such

problems may be minimized. Much more importantly, however, the entire supply

chain can then be optimized and managed as a single entity. This brings potential

advantages of cost reduction and service enhancement, not only for the retailer, but

also for the supplier. It should also mean that products reach the stores more

rapidly, thus better meeting sometimes transient customer demand. In some

instances, it may mean the production of products in merchandisable ready units,

which flow through the distribution systems from production to the shop floor

without the need for assembly or disassembly. Such developments clearly require

supply chain co-operation and coordination.

We may be describing highly complex and advanced operations here. Retail

suppliers are increasingly spread across the world. A retailer may have thousands

of stores in a number of countries, with tens of thousands of individual product lines.

They may make millions of individual sales per day. Utilizing data to ensure

effective operation amongst retailers, manufacturers, suppliers, logistics services

providers, head office, shops and distribution centers is not straightforward. There

is thus always a tension between overall complexity and the desire for the simplest
[29]
possible process.

Summarizing the discussion above, the logistics task therefore can be described

as: The process of strategically managing the procurement, movement a n d

storage of materials, parts and finished inventory (and the related information

flows) through the organization and its marketing channels in such a way that

current and future profitability are maximized through the cost-effective

fulfillment of orders. (Christopher, 1998).

Managing the logistics mix in an integrated retail supply chain, while aiming to

balance cost and service requirements, is the essential element of logistics

management (Figure 1). As retailers have begun to embrace this logistics approach

and examine their wider supply chains, many have realized that to carry out

logistics properly, there has to be a transformation of approach and operations

(Sparks, 1998).

RETAIL LOGISTICS AND SUPPLY CHAIN

TRANSFORMATION

Retailers were once effectively the passive recipients of products, allocated to

stores by manufacturers in anticipation of demand. Today, retailers are the active

designers and controllers of product supply in reaction to known customer demand.

They control, organize and manage the supply chain from production to

consumption. This is the essence of the retail logistics and supply chain

transformation that has taken place.

[30]
 Times have changed and retail logistics has changed also. Retailers are the channel

captains and set the pace in logistics. Having extended their channel control and

focused on efficiency and effectiveness, retailers are now attempting to engender

a more co- operative and collaborative stance in many aspects of logistics. They are

recognizing that there are still gains to be made on standards and efficiency, but that

these are probably

Figure 1: The Management Task in Logistics

Only obtained as channel gains (that is, in association with manufacturers and

logistics services providers) rather than at the single firm level.

In 1996 Alan McKinnon reviewed and summarized the key components of this

retail logistics transformation. He identified six closely related and mutually

reinforcing trends:

1 INCREASED CONTROL OVER SECONDARY DISTRIBUTION

Retailers have increased their control over secondary distribution (ware- house to

[31]
 shop) by channeling an increasing proportion of their supplies through distribution

centers (DCs). In some sectors such as food this process is now virtually complete.

British retailers exert much tighter control over the supply chain than their

counterparts in most other countries. Their logistical operations are heavily

dependent on information technology (IT), particularly the large integrated stock

replenishment systems that control the movement and storage of an enormous

number of separate products.

2 RESTRUCTURED LOGISTICAL SYSTEMS

Retailers have reduced inventory and generally improved efficiency through for

example the development of „composite distribution‟ (the distribution of mixed

temperature items through the same distribution centre and on the same vehicle)

and centralization in specialist ware- houses of slower moving stock. In the case

of mixed retail businesses common stock rooms have been developed, where stock

is shared across a number of stores, with demand deciding to which store it is

allocated.

3 ADOPTION OF “QUICK RESPONSE” (QR):

The aim has been to cut inventory levels and improve the speed of product

flow. This has involved reducing order lead-time and moving to a more frequent

delivery of smaller consignments both internally (between DC and shop) and

externally (between supplier and DC). This has greatly increased both the rate of

stock-turn and the amount of product being cross-docked, rather than stored at DCs.

[32]
 QR (Lawson, King and Hunter, 1999) was made possible by the development of

EDI (Electronic Data Interchange) and EPOS (Electronic Point of Sale), the latter

driving the Sales Based Ordering (SBO) systems that most of the larger retailers

have installed. In other words, as an item is sold and scanned in a shop, this data is

used to inform replenishment and reordering systems and thus react quickly to

demand. Sharing such data with key suppliers further integrates production with

the supply function. Major British retailers have been faster to adopt these

technologies than their counterparts in other European countries, although they still

have to diffuse to many small retail businesses.

4 RATIONALIZATION OF PRIMARY DISTRIBUTION

(FACTORY TO WAREHOUSE)

Partly as a result of QR pressures and partly as a result of intensifying competition,

retailers have extended their control upstream of the DC (that is, from the DC to the

manufacturer). In an effort to improve the utilization of their logistical assets, many

have integrated their secondary and primary distribution operations and run them

as a single „network system‟. This reduces waste and improves efficiency.

5 INCREASED RETURN FLOW OF PACKAGED MATERIAL AND

HANDLING EQUIPMENT FOR RECYCLING/REUSE

Retailers have become much more heavily involved in this reverse logistics
[33]
 operation. This trend has been reinforced by the introduction of the EU packaging

directive. Although the United Kingdom currently lags behind other European

countries, particularly Germany, in this field, there remain opportunities to develop

new forms of reusable container and new reverse logistics systems to manage their

circulation.

6 INTRODUCTION OF SUPPLY CHAIN MANAGEMENT (SCM)

AND EFFICIENT CONSUMER RESPONSE (ECR)

Having improved the efficiency of their own logistics operations, many retailers

have begun to collaborate closely with suppliers to maximize the efficiency of

the retail supply chain as a whole. SCM (and within this, ECR) provides a

management framework within which retailers and suppliers can more effectively

coordinate their activities. The under- pinning technologies for SCM and ECR

have been well established in the United Kingdom, so conditions have been ripe for

such developments.

It is clear that many of these trends identified in McKinnon (1996) have been the

focus for retailers in the intervening years. Issues such as primary distribution and

factory gate pricing, consolidation centers and stockless depots and Collaborative

Planning Forecasting and Replenishment (CPFR) have occupied much attention.

The overall focus in retail logistics has been altered from an emphasis on the

functional aspects of moving products to an integrative approach that attempts to

develop end-to-end supply chains. This outcome is normally referred to as supply

[34]
 chain management.

SUPPLY CHAIN MANAGEMENT

The roots of supply chain management are often attributed to Peter Drucker and his

seminal 1962 article. At this time, he was discussing distribution as one of the key

areas of business where major efficiency gains could be achieved and costs

saved. Then, and through the next two decades, the supply chain was still viewed

as a series of disparate functions. Once the functions began to be integrated and

considered as a supply chain rather than separately, several key themes emerged:

• A shift from a push to a pull: that is, a demand-driven supply chain;

• Customers gaining more power in the marketing channel;

• An enhanced role of information systems to gain better control of the supply chain;

• The elimination of unnecessary inventory in the supply chain;

• A focus upon core capabilities and increased outsourcing of non-core

activities to specialists.

To achieve maximum effectiveness of supply chains, it became clear that

integration, or the linking together of previously separated activities within a

single system (Slack et al, 1998) was required. Companies have had therefore to

review their internal organization to eliminate duplication and ensure that total

costs can be reduced, rather than allow separate functions to control their costs

in a sub-optimal manner. Similarly, supply chain integration can be achieved by

[35]
establishing ongoing relationships with trading partners throughout the supply

chain.

In industrial markets supply chain integration focused upon the changes

promulgated by the processes involved in improving efficiencies in manufacturing.
Total quality management, business process re-engineering and continuous
improvement brought Japanese business thinking to western manufacturing
operations. The implementation of these practices was popularized by Womack,
Jones and Roos’s (1990) book The Machine that Changed the World, which focused
on supply systems and buyer–seller relationships in car manufacturing. In a retail
context it is claimed that food retailers such as Tesco are increasingly embracing
such lean principles for parts of their business (Jones 2002).
During the 1990s this focus on so-called lean production„ was challenged in the

United States and the UK, because of an over-reliance on efficiency measures (lean)

rather than innovative (agile) responses. Table 1.1 shows how lean and agile supply

chains differ. Agility as a concept was developed in the United States in response

to the Japanese success in lean production. Agility plays to US strengths of

entrepreneurship and information systems technology. An agile supply chain

(Figure 2) is highly responsive to market demand. Harrison et al (1999) argue that

the improvements in the use of information technology to capture „real time‟ data

mean less reliance on forecasts and create a virtual supply chain between trading

partners. When information is shared, process integration takes place between

partners who focus on their core competencies. The final link in the agile supply

chain is the network where a confederation of partners structure, coordinate and

manage relationships to meet customer needs (Aldridge and Harrison, 2000).

[36]
Both approaches of course have their proponents. There is however no reason why

supply systems may not be a combination of both lean and agile approaches, with

each used when most appropriate (the so-called leagile approach: Naylor, Naim

and Berry, 2002; Mason-Jones, Naylor and Towill, 2000). In either case, emphasis

is placed on the demands of supply chain management.

It can be suggested that the key concepts within Supply Chain Management (SCM)

include the value chain, resource-based theory (RBT) of the firm, transaction cost

economics and network theory. The thrust of all these concepts is the obtaining

of competitive advantage through managing the supply chain (within and beyond

the single firm) more effectively.

[37]
 Table 1.1 Alternative Supply Chain Processes

Efficient/function (lean) Innovative/responsive

(agile)

Respond quickly to
unpredictable demand in
Supply predictable demand order to minimize stockouts,
Primary purpose efficiently at lowest cost forced mark-downs, and
obsolete inventory

Manufacturing Maintain high average Deploy excess buffer capacity

focus utilization rate

Generate high turns and Deploy significant buffer

Inventory minimize inventory stock of parts
strategy

Shorten lead time as long as it Invest aggressively in ways to

Lead time focus doesn’t increase cost reduce lead time

Approach to Select primarily for speed,

supplier Select primarily for cost and flexibility and quality
selection quality

Source: adapted from Harrison, Christopher and Van Hoek, 1999

[38]
 Figure 2 T h e Agile Supply Chain

They all explore possible benefits of a pan-firm orientation. Figure 2 is a

supply chain model showing how value may be added to the product through

manufacturing, branding, packaging, display at the store and so on. At the

same time, at each stage cost is added in terms of production costs, branding

costs and overall logistics costs. The aim for retailers (and their supply

partners) is to manage this chain to create value for the customer at an

acceptable cost. The managing of this so-called pipeline has been a key

challenge for logistics professionals, especially with the realization that the

reduction of time not only reduced costs, but also gave competitive advantage.

According to Christopher (1997) there are three dimensions to time-based

competition that must be managed effectively if an organization is going to

be responsive to market changes. These are:

[39]
• Time to market: the speed at bringing a business opportunity to market;

• Time to serve: the speed at meeting a customer’s order.

• Time to react: the speed at adjusting output to volatile responses in demand.

Christopher (1997) uses these principles to develop strategies for strategic

lead-time management. If the lead times of the integrated web of suppliers

necessary to manufacture a product are understood, he argues that a pipeline

map can be drawn to represent each stage in the supply chain process from

raw materials to customer. In these maps it is useful to differentiate between

„horizontal‟ and vertical time. Horizontal time is time spent on processes such

as manufacture, assembly, in-transit or order processing. Vertical time is the

time when nothing is happening, no value is added but only cost and

products/materials are standing as inventory.

It was in fashion markets that the notion of time-based competition‟ had

most significance, in view of the short time window for changing styles. In

addition, the prominent trend in the last 20 years has been to source products

globally, often in low-cost Pacific Rim nations, which lengthened the

physical supply chain pipeline. These factors combined to illustrate the

trade-offs that have to be made in supply chain management, and suggested

an imperative to develop closer working relationships with supply chain

partners.

[40]
This consideration of the changes and challenges in retail logistics allows us

to summarize the key issues in retail logistics and supply chains.

First, it should be clear by now that the modern logistics and supply systems

are heavily dependent on the use of information technology. Anyone who

believes that retail logistics is all about boxes and lorries needs to rethink. Of

course, it remains true that products have to be distributed. Vehicles and

boxes are still involved. But increasingly it is the control of data and

information that remains the key to a successful logistics system.

Second, the discussion above should have indicated that modern retail

logistics is no longer a separate or functionally based activity. Within a

company, warehousing and transport cannot exist as separate operations.

Instead, logistics is all about integration, not only within a company, logistics

service providers and customers. Partnership is a strong component of

modern retail logistics, and an ability to work with other individuals and other

companies is fundamental to success.

Third, it should have become apparent that the reach of retail logistics has

expanded enormously. Companies used to manage local suppliers and

products to and from local warehouses. Nowadays, retailers are much more

global in their outlook. Products are sourced from around the world and so

the interactions and movements involved in logistics are now equally

international.

[41]
Finally, however, we must not forget that logistics is about the movement

of product, and much work is undertaken on improving the mechanics of

this task. For example, a modern supermarket contains good examples of

packaging and standardization, the best of which make handling easier.

Vehicle fleets may be equipped with GPS (Global Positioning Satellite)

systems and advanced tachograph and communications equipment, allowing

real-time driver and vehicle performance monitoring.

With the pressure on to enhance service and reduce costs in supply chains,

together with their enhanced complexity, there can be little doubt that

retailers will be subjected to considerable logistical challenges in the years to

come.

The current study has attempted to assess the logistics management of V-Mart

in Delhi city of Delhi state, using the above information as a base although

the infrastructure in the state is still not well developed and the retailing is

still in its infancy state as most of the market share is controlled by the local

Kirana shops and there is a long way for the retail sector to go.

[42]
 Chapter 3

RESEARCH
METHODOLOGY

[43]
 RESEARCH METHODOLOGY

METHODOLOGY OF THE STUDY:

Research methodology is a way to systematically investigate the research

problem. It gives various steps in conducting the research in a systematic and

a logical way. It is essential to define the problem, state objectives and

hypothesis clearly. The research design provides the details regarding what,

where, when, how much and by what means enquiry is initiated. Every piece

of research must be planned and designed carefully so that the researcher

precedes a head without getting confused at the subsequent steps of research.

The researcher must have an objective understanding of what is to be done,

what data is needed, what data collecting tools are to be employed and how

the data is to be statistically analyzed and interpreted. There are a number of

approaches to the design of studies and research projects all of which may be

equally valid. Research is a systematic attempt to obtain answers to

meaningful questions about phenomenon or events through the application of

scientific procedures. It an objective, impartial, empirical and logical analysis

and recording of controlled observation that may led to the development of

generalizations, principles or theories, resulting to some extent in prediction

and control of events that may be consequences or causes of specific

phenomenon. Research is a systematic and refined technique of thinking,

employing specialized tools, instruments and procedures in order to obtain a

[44]
more adequate solution of a problem than would be possible under ordinary

mean. Thus, research always starts from question. There are three objectives

of research factual, practical and theoretical, which gives rise to three types of

research: historical, experimental and descriptive.

Research design has been defined by different social scientists in a number

of ways. All these definitions emphasize systematic methodology in
collecting accurate information
or interpretation. Selltize et al. (1962) expressed their views as, “Research

designs are closely linked to investigator’s objectives. They specify that

research designs are either descriptive or experimental in nature.” Research

design tells us how to plan various phases and procedures related to the

formulation of research effort (Ackoff Russell, 1961). Miller (1989) has

defined research design, “as the planned sequence of the entire process

involved in conducting a research study.”

Kothari (1990) observes, “Research design stands for advance planning of the

method to be adapted for collecting the relevant data and the techniques to be

used in their research and availability of staff, time and money.” In this way,

selecting a particular design is based on the purpose of the piece of the

research to be conducted. The design deals with selection of subjects,

selection of data gathering devices, the procedure of making observations and

the type of statistical analysis to be employed in interpreting data

relationship”.

The study is qualitative research aimed at identifying how V-Mart manages

[45]
and operate its retail convenience business focusing on several aspects;

strategic fits, distribution and IT, which support its logistics activities. It leads

to the exploration of the competitive advantage that originates from those

perspectives.

POPULATION OF THE STUDY

The population of the study comprised of all the staff members in the

management involved in managing the supply chain. Furthermore, the

managers of distribution centers and transport providers also formed the part

of the population of the study.

SAMPLE OF THE STUDY

45 interviews were conducted with the respondents from various V-

Mart stores functional in the Delhi city

RESEARCH PURPOSE

Enquiries can be classified in terms of their purpose as well as by the research

strategy used (Robson, 2002). There are three different classifications,

exploratory, descriptive and explanatory. In the same way as you may employ

more than one strategy in your research project, so you may have more than

one purpose. Indeed, as Robson (2002) points out, the purpose of your enquiry

may change over time.

Exploratory Study is a study investigating an entirely new area of research.

[46]
 Unlike replications and exploratory study does not follow directly from an

existing study. Robson defined those exploratory studies are a valuable means

of finding out what is happening to seek new insight; to ask questions and to

assess phenomena in a new light (Robson, 2002).

There are three principal ways of conducting exploratory research:

• A search of the literature;

• Talking to experts in the subject;

• Conducting focus group interviews.

Exploratory research can be likened to the activities of the traveler or explorer

(Adam and Schvaneveldt, 1991). Its great advantage is that it is flexible and

adaptable to change. If you are conducting exploratory research, you must be

willing to change your direction as a result of new data that appears and new

insights that occur to you (Saunders and et al., 2003).

Adams and Schvaneveldt (1991) reinforce this point by arguing that the

flexibility inherent in exploratory research does not mean absence of direction

to the enquiry. What is does mean is that the focus is initially broad and

becomes progressively narrower as the research progresses.

The object of descriptive research is to portray an accurate profile of persons,

events or situations (Robson, 2002). This may be an extension of, or a

[47]
forerunner to, a piece of exploratory research. It is necessary to have a clear

picture of the phenomena on which you wish to collect data prior to the

collection of the data (Saunders and et al., 2003). The authors also claim that

in a research work, you need to go further and draw conclusion from your

data. You should develop the skills of evaluating data and synthesizing ideas.

These are higher-order skills than those of accurate description. Description

in management and business research has a very clear place. However, it

should be thought of as a means to an end rather than an end in itself.

Studies that establish causal relationships between variables may be termed

explanatory studies. The emphasis here is on studying a situation or a problem

in order to explain the relationships between variables. You may find, for

example, that a cursory analysis of quantitative data on manufacturing scrap

rates shows a relationship between scrap rates and the age of the machine

being operated. You could go ahead and subject the data to statistical tests

such as correlation in order to get a clearer view of the relationship (Saunders

and et al., 2003).

Based on our objectives, our research purpose is exploratory partly since we

want to gain a better understanding of how Supply Chain is managed in V-

Mart. We conducted exploratory studies by searching the literature in the

library, database and the company’s internal documents and talking with the

experts in this area. And we are descriptive since we want to we portray the
[48]
process, the system, the value and the influencing factors of the e-Logistics

system. We are also partly explanatory since we try to draw conclusions by

answering our research questions by our findings. Generally speaking, since

our research problem is to portray an accurate profile of e-Logistics system

and the value creation so our research purpose is primarily descriptive.

RESEARCH DESIGN

There are various methodologies for research and methodology refer to the

choices researcher make about cases to study, method of data gathering, and

from of data analysis etc. (Silverman ,2007). In this research the researcher

used a qualitative study as a methodology. The nature of qualitative research

allows flexibility between gathering data and interpreting them within framed

theories. Qualitative researchers usually work with small samples of people,

nested in their context and studied in-depth, very different from quantitative

researchers, who aim for larger numbers of cases and seek statistical

significance (Miles & Huberman, 1994).

In this study, researcher constructed a research strategy which is

customized to study purpose. Researcher used qualitative research method

following with comparative research. A case study of V-Mart Delhi was

chosen as a representative of an observation in logistics and retailing business

in this research. The multi-data collection methods were employed from

various sources of data to ensure the validity and reliability of the research.

[49]
The sources of data included the chosen firm’s representatives, including the

staff in distribution center of Delhi. Additionally, research was conducted and

the interview with other supply chain members such as V-Mart’s supplier and

company that provide transportation services to V-Mart. The interview with

business analyst (financial analyst) was conducted to gain more market

environment and trend of the industry. The researcher also included both

primary and secondary data throughout the data collection and analysis part.

QUALITATIVE RESEARCH

Qualitative research seeks out the why and the how of its topic through the

analysis of unstructured information (Yin, 1994) – things like interview

transcripts and recordings, emails, notes, feedback forms, photos and videos.

The qualitative research does not only rely on statistics or numbers, which are

the domain of quantitative researchers. Yin (1994) also depicts that the

qualitative method is used to gain insight into attitudes, behavior, motivation

culture or lifestyles. Focus groups, in-depth interviews, content analysis and

semiotics are among the many formal approaches that are used.

The purpose of this study casts the main interests on how logistics activities

are handled and in what essence have them been regarded to. In this research,

the researcher employed naturalism and ethnomethodology which the

researcher found to be the most suitable method. The researcher corrected

information through observation and interviews by using tools such as phone,

[50]
audio record, email and internet. Furthermore, the researcher used interviews

with several parties involved in the process of distribution in the selected case

study.

CASE STUDY

A case study is an extensive examination of a single instance of a phenomenon

of interest. It involves gathering detailed information about the unit of

analysis with a view to obtaining in- depth knowledge (Collis & Hussey,

2003). According to Yin (1994), characteristics of a case study research tend

to explore a certain phenomenon and offer the understandings in a

particular context. The multiple methods can be used in the collection of

data which encourage the researcher to gain more opportunities in searching

up the data to provide a sound analysis. Researcher used a case study of V-

Mart in Delhi as it poses as number one in chain convenience store in the state

of J&K.

The proposed study utilized a mixed methodology approach to collect the data

from the respondents. The purpose of this project casts the main interests on

how logistics activities are handled and in what essence have they been

regarded to.

The researcher collected information through observation and interviews by

using tools such as phone, audio record, email and internet. Furthermore, the

[51]
researcher used interviews with several parties involved in the process of

distribution in the selected case study.

A case study of V-Mart Delhi is chosen as a representative of an observation

in logistics and retailing business in this research. The main interest of the

study was to identify and describe how V-Mart manage and operates its retail

convenience business focusing on several aspects; strategic fits, distribution

and IT, which support V-Mart’s activities. It leads to the exploration of the

competitive advantage that originates from those perspectives.

COLLECTION OF DATA

The researcher used two main data collection. First, the primary data is from

the interviews. The secondary data gives supporting data in to fulfill the gap

from the interviews in this research study. Both data collection methods are

explained below.

(A) PRIMARY DATA

The researcher used interviews as a primary source of data. Why interview?

This question may seem surprising, however the majority of published

qualitative research articles use interviews and moreover compared to other

methods, interviews are relatively economical in terms of time and

resources (Silverman, 2007). Saunders, Lewis and Thornhill (2007), present

the definitions of three types of interviews as;

[52]
 • Structured interview: Data collection technique in which an

interviewer physically meets the respondent, reads them the same set

of questions in a predetermined order, and records his or her response

to each.

• Semi-structured interview: Wide-ranging category of interview in

which the interviewer commences with a set of interview themes but

is prepared to vary the order in which questions are asked and to ask

new questions in the context of the research situation.

• Unstructured interview: Loosely structured and informally conducted

interview that may commence with one or more themes to explore with

participants but without a predetermined list of questions to work

through.

The researcher applied a semi-structured interview and an in-depth interview

in retrieving primary data. The interviewees are involved V-Mart’s personal,

the financial analyst in commerce industry, transportation firm, and supplier

of V-Mart in Delhi. The interviews with V-Mart’s personal, transportation

firm, and the suppliers are intended to describing the functions at DCs and

how each actors process these activities accordingly to others chain members.

Due to the limitation of time, resources as well as the well-round data can flaw

the research quality; the researcher fulfill these slacks with secondary data

[53]
described in a next section.

(B) SECONDARY DATA

The researcher used “Desk research” approach on secondary data. Desk

research is the term that is used loosely, and it generally refers to secondary

data or that which can be collected without fieldwork. (Hague et al., 2004)

Desk research use the existing information from the website, company data

and sources, directories, magazine or other published sources (Yadin, 2002).

The researcher gathered data from company annual report, quarterly report

and from its website. The data can be trusted from these resources since the

company selected in the case study is a listed company in India which is

obligated to provide financial and operations performance, and future plans to

investors.

Journals, magazines as well as the newspapers interviews with V-Mart was

used as data in this study. They provided the researcher with the reflections

on firm’s perspectives, especially in the interviews with management level of

the firm. The data was compared and cross checked before including in the

study.

According to Kent (2007), secondary data entails the proactive seeking of

existing data in both qualitative and quantitative research. It can also help to

interpret the primary data.

[54]
 DATA ANALYSIS

Researcher can increase the quality of the analysis by dividing data into three

phases: data deduction, data display and conclusion drawing, and verification

from the presented material (Miles & Huberman, 1994). In this study, our data

evaluation followed these three phases. According to Miles and Huberman

(1994), the reduction of collected data in first phase, data will be noted and

recorded, shortened, simplified and compiled. The researcher writes down

all interviews from the respondents in order to prevent the loss of information.

Moreover, they gave the researcher an opportunity to review the respondents

again. All interviews were transcribed into written text after finishing of the

interviews.

The data reduction was made before the collection starts, questions are

selected in the interview and they were given to the participants only relating

to the research purpose and objectives. Furthermore, in the second phase, the

use of displays is not separate from analysis, formats can be as various as the

imagination of the analyst, and different analytical activities can be used such

as rows and columns of a matrix for qualitative data and deciding which data,

in which form, should be entered in the cells. In our analysis part, related data

was compiled together to provide readers a complete picture of respondents‟

opinions. Lastly, in the final part of analysis section, the modified material

was analyzed and then conclusions were drawn.

[55]
 VALIDITY AND RELIABILITY

Validity addresses the problem of whether a measure measures what it is

supposed to measure. According to Theater (2001), the main concerns with

the validity are whether the measured data is relevant and precise, and the

second is the extent to which we can generalize from those results. In this

research, it brought up the question of whether the interview has measured in

the right way and also all the interviewed questions has been proper and go

well with the research’s objective and purpose.

Reliability concerns the consistency and accuracy of the results obtained and

it is achieved if research results can be repeated (Collis & Hussey, 2003).

Reliability means dependability or consistency. Neuman (2006) suggests that

the same result can be achieved under the identical or very similar conditions.

This researcher used many sources of data and all were cross-checked before

including in the study. The interviews were made with several parties to gain

insightful data. The interview data and data from secondary sources were

compared to confirm the reliability of the data. To obtain higher reliability,

the researcher rechecked the transcripts from the interviews to the

interviewees to let them confirm their answer again. Therefore, this research

is valid and reliable.

[56]
Chapter 4

RESULT AND
DISCUSSION

[57]
 RESULT AND DISCUSSION

ANALYSIS OF THE SAMPLE SURVEY OF EMPLOYEES

DATA ANALYSIS AND INTERPRETATIONS

V-Mart stores are wholly owned by Bharti Retail. The first B2B wholesale

cash-and- carry store in northern India. A typical cash-and-carry store stands

between 50,000 and 100,000 square feet and sell a wide range of products

from 6000 to 10000 and is providing a one stop and shop experience.

The data was collected from the V-Mart’s operational managers in Delhi. The

analysis and interpretation of the data is made as under:

Q1. WHAT HAS MADE V-MART LEADER IN SUPPLY CHAIN

MANAGEMENT?
V-Mart became a leader in supply chain management because they took a
direct, regional approach. They cut out the middleman, and became their own
distributor. Also, a main leading factor to their success was their
implementation of the bar code system, which was later adapted to have RFID
microchips to eliminate physical inventory counting, making it much more
efficient. Not only could they tell what they were selling, how much, now they
could tell where it was in their regional distribution centers, making them able
to restock their inventory in 48 hours, much faster than any of their
competitors. These distribution centers were important because V-Mart retail
stores were strategically placed within a boundary of a delivery zone of their
distribution centers to cut transportation costs, and consumer costs. Another
key factor into their success was their intense competitor research weekly.
This meant the V-Mart was able to beat competitors by 4% to sometimes 10%

[58]
by discounting 4 rolling key items for approximately 75 days each. The
increase in volume sales allowed for a price drop and edge over their
competitors, these promotions brought in revenue.

Q2. EXPLAIN V-MART’S USE OF INNOVATIVE IT TOOLS

AND IT- ENABLED PROCESSES TO BENEFIT SUPPLY CHAIN

Information technologies such as the bar code, electronic data interchange

(EDI), and radio frequency identification (RFID) have allowed V-Mart to

maintain its position as leader in supply chain management. V-Mart first used

the barcode paired with scanners for inventory. This point-of-sale system was

able to identify items sold, locate the price for the item, create a receipt for the

customer, and store the transaction for later sales and inventory analysis. The

barcode helped speedup the checkout process but on a larger scale unlocked

the door to information management. V-Mart was now able to control its

inventory and avoid overstocking its selves with merchandise that was not

selling well. This helped to make the supply chain become more efficient and

cost effective. Soon after, the universal product code (UPC) was introduced

and became the standard for identifying and labeling products in the retail

industry. Electronic data interchange (EDI) had become a valuable

technological tool that helped to strengthen the relationship between V-Mart

and its suppliers. Through the company-developed application Retail Link,

suppliers are now able to access V-Mart database and view up-to-date, store-

by- store, sales and inventory information for their products. Suppliers could

[59]
then coordinate to forecast, plan, produce, and ship products as needed. With

the use of its privately owned satellite communication system, V-Mart is now

able to coordinate its supply chain activities between all store locations and

distribution centers. V-Mart went to a whole new level when it required its

suppliers to equip its products with microchips that could be used for radio-

frequency identification (RFID). These microchips were an enhanced form of

the barcode, storing more information. Similar to what is used on the highway

for toll collection, the technology requires the RFID tags to be in close

proximity to the RFID reader. Once scanned, the item or goods could be

tracked throughout the whole supply chain. In-store, managers could

determine how many products it had and where they could be located. V-

Mart’s use of innovative IT tools and processes has set the standard for supply

chain management. Its ability to exploit information and use it to better the

supply chain process has enabled it to keep inventories low, increase turnover,

and create cost savings, which in turn can be passed on to the consumers.

Q3. ANALYZE T H E RETAIL INDUSTRY THROUGH

PORTER’S FIVE FORCES

Retail market (Organized and unorganized) is estimated by the India Retail

Report to be around Rs. 12,00,000 crore ($270 billion) with annual growth

rate is 5.7 percent. Currently unorganized/traditional retailing is contributing

95% of the industry with over 15 million small and medium outlets (mom-

and-pop corner stores also called Kirana stores). Organized formats are only

[60]
 in the initial stages of adoption in the country. However, with the change of

tastes and preferences of the consumers, the industry is getting more popular

these days and getting organized as well. With growing market demand, the

organized retail industry is expected to grow at a pace of 25-30% annually

(CII-AT Kearney Retail Study). Retailing is growing rapidly with consumer

spending increasing by unprecedented rates. Because of these factors global

players like Wal-Mart, Tesco, and Carrefour are interested in this sector.

1. NEW FOREIGN TRENDS

2. LOW SWITCHING COST

More availability of options Considering these the threat to substitute in

Indian retail market varies from moderate to low as the organized retail market

is very less and the outcomes are currently favorable for the industry. The

substitutes are mainly available in the unorganized sector as they have the

cheaper version of the products which attract the customers from lower

income group.

3. BARGAINING POWER OF SUPPLIER: (LOW)

The price at which the product is available to the retailer is very important. If

the supplier has a high bargaining power, then in theory it makes the industry

less attractive.

If we consider the retail market it is very attractive due to the low bargaining

power of the supplier as the number of buyers in existence as compared to the

suppliers is very few. However, it varies from product to product and the
[61]
 availability of undefined highly valued products can be seen as a threat as the

bargaining power of the supplier would increase in this case.

4. BARGAINING POWER OF BUYER: (MODERATE TO HIGH)

The bargaining power of buyer in India is increasing fast as the customer is

becoming more and more informed and aware about the various brands,

products and foreign trends. This is also characterized due to the high number

of alternatives available in the market and the due to increase in the available

disposable incomes as well as the price range of the products.

5. DEGREE OF RIVALRY: (MODERATE)

The structure of industry cost, degree of differentiation and switching cost

determine the intensity of rivalry. The intensity of rivalry is not very high due

to few levels in the market and low differentiation. However, this is changing

due to the new entries in the market.

Q4. WHY IS IT LUCRATIVE FOR V-MART TO OFFER CASH-

AND CARRY SERVICES WITH ITS PARTNERS?

ENTRY INTO EMERGING MARKET:

Saturation in western markets has shifted the attention of investors to India’s

emerging market. India has a growing middle class, an expanding economy

and a growing brand- conscious consumer. It has a $450 billion retail industry.

However, there are high barriers against foreign direct investment (FDI).

India’s strict regulations have made it difficult for multi-brand foreign

retailers, such as Wal-Mart, to sell directly to the public. Thus, the joint

[62]
 venture between V-Mart and Bharti has provided a means to enter the

emerging Indian market through this partnership.

FIRST MOVER’S ADVANTAGE:

This partnership provides the first movers advantage to V-Mart as the other

competitors like Tesco have not established themselves yet into the country.

This also provides an opportunity to grab the market share due to lack of the

organized retailing in the country. This would also be an added advantage in

future when the government would open FDI. However, this may also pose a

drawback since there will be a lot of investing needed to improve the supply

infrastructure. Those positioned as second-mover and third-mover may be

able to learn from the mistakes of the first.

COMBINATION OF THE EXPERIENCE AND EXPERTISE:

In this joint venture the two firms have also entered into an agreement

according to which V-Mart provides critical technical and backend support to

Bharti Retail.

Supply Chain Management:

The joint venture works with the existing supply chain Infrastructure to help

make it more efficient which helps in the development of the Indian retail and

increases the efficiency.

Helping growth of Indian economy:

1. Support to farmers: The firm has removed the middle man and is directly

dealing with the farmer which helps them to improve the quality and

[63]
 production and also plays important role in the development of the farmers as

they also provide them with educating programs to improve the efficiency of

farmers.2. Creating job opportunities: The firm makes use of 90% of local

produce creating job opportunities for the locals. This joint venture is looking

forward to establish across the country which would create job opportunities

to the local people.

Low prices every day:

Their organized cash-and-carry strategy will benefit local retailers and

merchants act as a one-stop-shop, offering over 6,000 items at competitively

low prices. A large array of quality goods are readily accessible helping the

small and mid-

Q.5 HOW EFFICIENT IS SUPPLY CHAIN WITH RFID?

The various components of Supply Chain are: Procurement, Distribution,

Logistics and inventory management.

Since the core of V-Mart business is perpetual improvement in its Supply Chain

implementation, it believes in “no-compromise” on implementing an innovative

IT infrastructure and strong communication system as they are they the

important links in the chain for a smooth functioning of the complete system.

V-Mart tapped RFID technology with an aim to increase the efficiency of its

supply chain. This is because RFID implementation will enhance

transparency of their supply chain and hence will help them minimize cost

[64]
and labor and will strengthen inventory control. According to Venture

Development Corporation, “With V-Mart selling over $45 billion worth of

goods in fiscal year 2013, a 1% improvement in the out-of-stock issue could

generate nearly $2.5 billion in very profitable sales”. In addition, a study by

Cohen at Wharton chalks out the difference between the existing inventory

management and the RFID enabled supply chain.

“In current systems, you may know there are 10 items on the shelf, and that

information is compiled in an enterprise planning software system. With

RFID, you know there are 10 items, their age, lot number, and expiration date

and warehouse origin. "It's like knowing there are 1,000 people in a city," says

Cohen. "With RFID, you know their names."

From the above studies it indicates that employing RFID technology will help

in implementing a seamless supply chain and hence yield profits.

“V-Mart has been able to restock RFID-tagged items three times as fast as

non-tagged items.” In addition to improving the availability of in-stock

merchandise, V-Mart aims to reduce the practice of manually placing the

order and has achieved 10% reduction in the case.

Q 6 -WHO ARE THE SUPPLIERS FOR THE V-MART?

Some of the major suppliers of V-Mart are:

Gillette, Hewlett-Packard, Johnson & Johnson, Nestle, Purina Pet Care

Company, Procter & Gamble and Hindustan Unilever etc.

[65]
 FINDINGS

1. EFFECTIVE INVENTORY MANAGEMENT: V-Mart Retail Limited

demonstrates efficient inventory management practices through the use of

advanced software systems, leading to optimized stock levels and reduced

carrying costs.

2. STRATEGIC TRANSPORTATION NETWORK: The company has

established a strategic transportation network, leveraging partnerships and

route optimization to ensure timely and cost-effective delivery of goods to its

stores.

3. TECHNOLOGY INTEGRATION: V-Mart integrates technology

seamlessly into its logistics operations, enabling real-time tracking of

shipments, data-driven decision-making, and enhanced transparency

throughout the supply chain.

4. CUSTOMER-CENTRIC APPROACH: V-Mart prioritizes customer

satisfaction by focusing on last-mile delivery efficiency, ensuring product

availability, and providing transparent communication regarding order status.

5. SUSTAINABILITY INITIATIVES: The company demonstrates a

commitment to sustainability by implementing eco-friendly packaging

practices, optimizing transportation routes to reduce emissions, and minimizing

waste in its logistics operations.

[66]
 POSITIVE FINDINGS

1. EFFICIENCY GAINS: V-Mart's logistics management practices have

resulted in significant efficiency gains, leading to cost savings and improved

operational performance.

2. ENHANCED CUSTOMER EXPERIENCE: Through streamlined

logistics operations, V-Mart has enhanced the overall customer experience by

ensuring timely delivery, reducing stockouts, and improving product

availability.

3. COMPETITIVE ADVANTAGE: V-Mart's effective logistics

management provides a competitive advantage in the retail industry, enabling

the company to respond quickly to market demands and maintain high service

levels.

4. ADAPTABILITY: The company demonstrates adaptability in its logistics

operations, effectively managing peak demand periods and navigating

disruptions such as natural disasters or labor strikes.

6. CONTINUOUS IMPROVEMENT: V-Mart emphasizes continuous

improvement in its logistics processes, regularly reviewing performance

metrics and implementing innovative solutions to enhance efficiency and

[67]
customer satisfaction.

NEGATIVE FINDINGS

1. CHALLENGES IN LAST-MILE DELIVERY: Despite efforts to

optimize last-mile delivery, V-Mart faces challenges such as traffic congestion

and unpredictable urban conditions, impacting delivery timelines and customer

satisfaction.

2. SUPPLY CHAIN DISRUPTIONS: The company is vulnerable to supply

chain disruptions, as evidenced by disruptions caused by global events such as

the COVID-19 pandemic, highlighting the need for greater resilience and risk

management strategies.

3. DEPENDENCY ON TECHNOLOGY: While technology integration has

been beneficial overall, dependency on technology also poses risks such as

system outages or cyber threats, requiring robust contingency plans and

security measures.

4. ENVIRONMENTAL IMPACT: Despite sustainability initiatives, V-

Mart's logistics operations may still have an environmental impact, particularly

in terms of carbon emissions from transportation and packaging waste,

necessitating ongoing efforts to minimize ecological footprint.

5. TRAINING AND DEVELOPMENT: There may be room for

[68]
improvement in employee training and development programs to ensure that

logistics personnel are equipped with the necessary skills and knowledge to

adapt to evolving industry trends and challenges.

These findings, positive and negative, provide insights into the strengths and

areas for improvement in V-Mart Retail Limited's logistics management

practices, offering valuable lessons for the retail industry as a whole.

[69]
Chapter 5

SUMMARY AND
CONCLUSION

[70]
 SUMMARY AND CONCLUSION

At present, V-Mart is at a nascent state of implementing RFID. In addition to

strengthening the Supply Chain, the largest retailer is also looking into

different dimensions where RFID can be helpful. As a pilot test, V-Mart is

working on the data collected by RFID to analyze the consumer behavior.

According to Venture Development Corporation, the major implementation

milestones of RFID at V-Mart are to expand Regional and domestic

implementation of RFID throughout 2014. These include Regional

Distribution Centers, Grocery Distribution in India. And, by 2015, V-Mart

aims to mandate RFID implementation for all its suppliers. V-Mart is looking

forward to expand all over the country using the expertise of its partners and

plans to open 15 outlets in its wholesale format by end-2014. The Company

currently operates many cash and carry stores in the country at Amritsar,

Ludhiana and Jalandhar and is catering to the small and mid-sized business

with the wholesale cash and carry service. This partnership also sees the

opportunity for growth hoping that India’s government will lift restrictions on

FDI so that it can open more and more stores in India and be able to cater to

the public directly. V-Mart not only benefits the firms but is also working

towards the improvement of the retail industry by improving the supply chain

management and is helping in the economic development of the country by

[71]
helping the farmers and small business. V-Mart can bring in revolutionary

changes to the Indian Retail Industry.

In their strategy the logistics platform is a driver for growth, where

acquisitions that have logistics synergies are prioritized. From a pure

logistics viewpoint logistics are not optimal because of a very large,

broad, and overlapping assortment of driving costs in warehousing and also

costs that are tied up capital and administration. The logistics practice is

thus not aimed at minimizing the wholesaler cost but in providing the

company with a strategic leverage.

This is supported from a centralized and very flexible logistics platform

that makes it possible to replenish individual stores in a country as well as

countries or cities with multiple stores.

In the study of V-Mart, this picture is confirmed with functional costs, mainly

wholesaling costs, in terms of the logistics network. SCM and logistics are

tools to reduce costs in wholesaler warehouses, for example, and t o reduce

logistics costs in the interface between the wholesaling function and retail

stores.

The results of the study suggest V-Mart’s process of procurement involves

reducing its purchasing costs as far as possible so that it can offer best price

to its customers. The company procures goods directly from the

manufacturers, bypassing all intermediaries. The fast & responsive

transportation system and the distribution centers in Delhi are well

[72]
coordinated. The truck fleets enable shipping of goods from distribution

centers to the stores within 2 days and replenish the store shelves twice a

week. This indicates a prompt and quick response to the logistics management

of the V-Mart stores in Delhi.

It is clear from the data that V-Mart ensures that unproductive inventory is as

less as possible, by allowing the stores to manage their own stocks, thereby

reducing pack sizes across many categories and timely price markdowns. V-

Mart makes full use of its IT infrastructure to make more inventories available

in case of items that customers wanted most, while reducing overall inventory.

By making use of Bar-coding & RFID technologies, different processes like

efficient picking, receiving & proper inventory control of the products along

with easy packing and counting of the inventories is ensured.

Certainly! Here are the findings, positive findings, and negative findings for

your project on "Logistics Management in Retail Industry: A Case Study on V-

Mart Retail Limited":

RECOMMENDATIONS

1. Investment in Advanced Technology

V-Mart Retail Limited should consider investing in advanced technology

solutions such as Internet of Things (IoT) sensors, artificial intelligence (AI)

algorithms, and predictive analytics to further enhance the efficiency and

[73]
effectiveness of its logistics operations. These technologies can provide real-

time insights, optimize routing, and automate decision-making processes,

leading to cost savings and improved customer satisfaction.

2. Enhanced Collaboration with Suppliers

Strengthening collaboration with suppliers through the adoption of vendor-

managed inventory (VMI) and collaborative planning, forecasting, and

replenishment (CPFR) initiatives can help V-Mart Retail Limited achieve

greater supply chain visibility and responsiveness. By sharing data and

aligning strategies, both V-Mart and its suppliers can better anticipate demand

fluctuations and optimize inventory levels, leading to reduced stockouts and

improved overall performance.

3. Focus on Sustainability Initiatives

V-Mart Retail Limited should prioritize sustainability initiatives throughout

its logistics operations, including the adoption of eco-friendly packaging

materials, optimization of transportation routes to minimize carbon emissions,

and implementation of energy-efficient warehouse practices. By

incorporating sustainable practices into its supply chain, V-Mart can not only

reduce its environmental footprint but also enhance its brand reputation and

appeal to environmentally conscious consumers.

4. Continuous Process Improvement:

Embracing a culture of continuous improvement is essential for V-Mart

Retail Limited to stay competitive in the rapidly evolving retail landscape.

[74]
Regular evaluation of key performance indicators (KPIs), benchmarking

against industry standards, and soliciting feedback from stakeholders can help

identify areas for optimization and drive ongoing process improvements

across all aspects of logistics management.

5. Investment in Employee Training and Development

V-Mart should prioritize employee training and development programs to

equip its logistics workforce with the skills and knowledge required to adapt

to changing industry trends and technological advancements. By investing in

the professional growth of its employees, V-Mart can build a highly

competent and motivated workforce capable of driving innovation and

delivering exceptional performance in logistics management.

6. Expansion of Omnichannel Capabilities

With the growing importance of omnichannel retailing, V-Mart Retail

Limited should continue to expand its omnichannel capabilities by integrating
its online and offline channels seamlessly. This may involve optimizing
inventory visibility across channels, implementing click-and-collect options,
and enhancing last-mile delivery services to offer customers greater flexibility
and convenience in their shopping experiences.

LIMITATIONS

1. Resource Constraints
Limited financial resources and infrastructure constraints may hinder the
implementation of advanced technology solutions and process improvements
[75]
within V-Mart Retail Limited's logistics operations. Without adequate
investment, the company may struggle to keep pace with competitors who
have greater resources at their disposal.

2. Dependency on Third-Party Providers

V-Mart relies on third-party logistics providers for certain aspects of its
supply chain, which introduces complexities and dependencies that are
beyond the company's direct control. Issues such as service disruptions,
fluctuating costs, and quality concerns with third-party providers may impact
the reliability and efficiency of V-Mart's logistics operations.

3.Regulatory Compliance Challenges

Compliance with regulatory requirements, including transportation
regulations, environmental standards, and labor laws, presents challenges for
V-Mart Retail Limited's logistics operations. Changes in regulations or
enforcement practices could necessitate costly adjustments to ensure
compliance, potentially impacting operational costs and efficiency.

4. Market Volatility and Uncertainty

The retail industry is susceptible to market volatility, economic downturns,
and shifting consumer preferences, which can pose challenges for V-Mart
Retail Limited's logistics planning and forecasting efforts. Rapid changes in
demand patterns or market conditions may require agility and flexibility to
adapt effectively, which could strain existing logistics processes and
capabilities.

5. Data Security and Privacy Concerns

As V-Mart increasingly relies on data-driven technologies and digital
platforms for logistics management, data security and privacy concerns become
[76]
paramount. Safeguarding sensitive customer information, mitigating the risk of
cyber threats, and ensuring compliance with data protection regulations are
ongoing challenges that require vigilance and investment in cybersecurity
measures.

6. Geographic and Infrastructure Limitations

V-Mart's logistics operations may face limitations associated with
geographic constraints, such as limited transportation infrastructure in certain
regions or challenges accessing remote areas. These limitations could impact
the efficiency of distribution networks and increase transportation costs,
particularly for last-mile delivery services.
By addressing these recommendations and considering the associated
limitations, V-Mart Retail Limited can enhance its logistics management
practices and maintain a competitive edge in the retail industry.

EXPECTED CONTRIBUTION OF THE STUDY

Retailing is a significant part of economic activity with wholesaling and

retailing value- added. The major goal of the retail industry or retail

merchandising system is to influence possible consumers to purchase a

particular products assortment at a particular retail store. Retail activities turn

out to be one of the significant themes playing the role in supply chain

management and logistics.

The management task is concerned with the element of distribution mix (for

example storage facilities and communication, etc.), which have to be

integrated for successful retail distribution. This research focus on the

[77]
mentioned information will surely affect retail business in one way or another

as it will be able to highlight the day-to-day problems faced by the staff and

the management in supply chain and logistics. The study

will also contribute towards suggesting various measures for improving the

present supply chain and logistics management scenario in Delhi stores in

particular.

DIRECTIONS FOR FUTURE RESEARCH

Moving on to the next research topic, the researcher see the connection

between supply chain management, enabling IT, and retail management

tightly tied together. To be able to generate sales in retail industry, knowing

to response to the market is crucial. Moreover, the succession in retail also

depends on the sales per slip which is helped through the category

management perspective.

Efficient Consumer Response or ECR puts forth those mentioned criteria

believed to be the key success factors to retail business. However, pursuing

ECR would need a help in logistics and distribution systems. Again, the

connections to the supply chain management also have implication to the

application of ECR.

However, the evidence of success case of ECR is controversial. Some firms

can achieve and benefits enormously, while some are failed. While retail

industry welcomes ECR techniques, self-estimation of firm’s capabilities

should be identified before embracing ECR to be implemented. The further

[78]
research on the key success factors of bringing up as well as the failure case

of implementing this program will be worthy to investigate.

[79]
Chapter 6

REFERENCES
AND
BIBLIOGRAPHY

[80]
 REFERENCES / BIBLIOGRAPHY

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and framework for future investigation, Journal of Business Logistics

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London

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logistics, DTI, London

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The last mile to nowhere, Strategy and Business 20, September

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 chain to meet consumer demand, Wiley, Chichester

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Research

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• Womack, J P, Jones, D and Roos, D (1990) The Machine that Changed the World:

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[84]
 Chapter 7

QUESTIONNARIE

[85]
 QUESTIONNARIE

1. What are the key components of logistics management in the retail

industry

- Key components include transportation, inventory management,

warehousing, and distribution.

2. How does V-Mart Retail Limited manage its inventory effectively

- V-Mart utilizes advanced inventory management software to track stock

levels, analyze demand patterns, and optimize replenishment strategies.

3. What role does technology play in V-Mart's logistics operations?

- Technology facilitates route optimization, real-time tracking of shipments,

and data analytics for informed decision-making.

4. How does V-Mart ensure timely and efficient delivery to its stores?

- V-Mart employs a network of distribution centers strategically located to

minimize transit times and utilizes efficient transportation modes.

5. What challenges does V-Mart face in last-mile delivery?

- Challenges include congested urban areas, unpredictable traffic conditions,

and ensuring timely delivery during peak demand periods.

[86]
6. How does V-Mart optimize its transportation network

- V-Mart collaborates with logistics partners to optimize routes, minimize

empty miles, and utilize transportation modes that offer cost-efficiency and

reliability.

7. What strategies does V-Mart employ to reduce transportation costs

- V-Mart consolidates shipments, negotiates favorable freight rates, and adopts

fuel-efficient vehicles to reduce transportation expenses.

8. How does V-Mart ensure the safety and security of its logistics

operations?

- V-Mart implements robust security measures such as GPS tracking,

surveillance cameras, and regular audits to mitigate the risk of theft and

damage.

9. What role does sustainability play in V-Mart's logistics strategy?

- V-Mart emphasizes sustainable practices such as optimizing delivery routes

to reduce carbon emissions and minimizing packaging waste.

10. How does V-Mart handle reverse logistics, such as product returns?

- V-Mart has established streamlined processes for handling product returns,

including efficient reverse logistics channels and timely refunds or exchanges.

[87]
11. What technologies does V-Mart use for warehouse management?

- V-Mart utilizes warehouse management systems (WMS) for inventory

tracking, order fulfillment, and optimizing storage space.

12. How does V-Mart ensure the accuracy of inventory data in its

warehouses?

- V-Mart conducts regular cycle counts, utilizes barcode scanning technology,

and implements strict quality control measures to maintain accurate inventory

records.

13. What strategies does V-Mart employ for demand forecasting?

- V-Mart analyzes historical sales data, market trends, and seasonal patterns to

forecast demand accurately, enabling proactive inventory management.

14. How does V-Mart optimize its warehousing operations for efficiency?

- V-Mart implements layout optimization, utilizes automation for picking and

packing processes, and employs cross-docking strategies to minimize

handling times.

15. What measures does V-Mart take to ensure compliance with regulatory

requirements in its logistics operations?

[88]
 - V-Mart conducts regular compliance audits, provides training to logistics

personnel, and maintains thorough documentation to adhere to regulatory

standards.

16. How does V-Mart manage its vendor relationships to enhance logistics

efficiency?

- V-Mart fosters collaborative partnerships with vendors, establishes clear

communication channels, and implements performance metrics to ensure

mutual success.

17. What role does data analytics play in V-Mart's logistics decision-making

process?

- Data analytics enables V-Mart to gain insights into consumer behavior,

optimize inventory levels, and identify areas for improvement in its logistics

operations.

18. How does V-Mart handle peak demand periods, such as festive seasons

or promotional events?

- V-Mart anticipates peak demand periods through historical data analysis and

implements contingency plans, such as increased staffing and expanded

warehouse capacity.

19. What strategies does V-Mart employ to minimize stockouts and

[89]
 overstock situations?

- V-Mart utilizes demand forecasting models, implements safety stock

policies, and closely monitors inventory levels to balance supply and demand

effectively.

20. How does V-Mart ensure product quality during transit and storage?

- V-Mart implements stringent quality control measures, such as temperature-

controlled transportation for perishable goods and regular inspections at

warehouses.

21. What measures does V-Mart take to address disruptions in its logistics

network, such as natural disasters or labor strikes?

- V-Mart maintains contingency plans, diversifies its supplier base, and utilizes

technology for real-time monitoring to mitigate the impact of disruptions.

22. How does V-Mart ensure transparency and visibility in its logistics

operations?

- V-Mart utilizes tracking systems and communication platforms to provide

stakeholders with real-time visibility into the status of shipments and

inventory levels.

23.What strategies does V-Mart employ for optimizing order fulfillment

[90]
 processes?

- V-Mart implements order batching, utilizes picking optimization algorithms,

and employs cross-training to streamline order fulfillment operations.

24. How does V-Mart integrate its logistics operations with other functional

areas, such as marketing and sales?

- V-Mart fosters cross-functional collaboration through shared data and

insights, enabling alignment between logistics, marketing, and sales

strategies.

25. What initiatives has V-Mart undertaken to enhance employee training

and development in logistics management?

- V-Mart provides ongoing training programs, certifications, and opportunities

for skill development to ensure its logistics personnel remain updated with

industry best practices.

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