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Modern Retail On Traditional Formats Scm Applications Marketing Essay

Indian retail industry has always performed an important role in improving the GDP development rate and lifestyle of the country. The industry which traditionally comprised on mom and pop stores distributed hither and thither is in the revolutionary period in the present era. The way retailing is done has come quite a distance with the introduction of organised or modern retail outlets. There are big players like Big Bazaar, Spencer's and Vishal Mega Mart to mention a few who have changed the face of retailing in India. These modern retail outlets have tremendous financial and technological support when compared with the traditional and unorganised retail outlets. An attempt is manufactured in this paper to study the evolving platforms of modern retail and know their impact on the traditional syndication partners like retailers and marketers. This paper also throws light on the supply string management tools used by the modern shops through case evaluation.

Impact of Modern Retail on Traditional Types & SCM Applications


Indian retail industry has always performed an important role in bettering the GDP development rate and lifestyle of the country. The industry which traditionally comprised on mother and pop stores distributed hither and thither is at the revolutionary stage in today's era. The way retailing is performed has come a long way with the emergence of organised or modern shops. You will find big players like Big Bazaar, Spencer's and Vishal Mega Mart to name a few who have changed the facial skin of retailing in India. These modern shops have tremendous financial and scientific support when compared with the original and unorganised shops. An attempt is made in this paper to review the evolving forms of modern retail and to know their impact on the traditional syndication partners like merchants and distributors. This newspaper also throws light on the source chain management tools used by the modern shops through case evaluation.

Introduction to Indian Retail Industry

Indian Retail industry, the industry which stands second in conditions of employment era after agriculture is without a doubt seen as a the widely dispersed retail store situated at each nook and corner whether its metropolitan India or rural. It's the industry which is unlikely known because of its unorganized types. Paanwalas and kiranawallas, road hawkers present almost everywhere are the various firms functioning hither and thither; and meeting the essential needs of the general public and creating a way of earning livelihood for most. In India, the retail industry is broadly divided into the prepared and unorganized sectors. The full total market in 2005 stood at Rs. 10, 000 billion, accounting for about 9-10% of the country's gross local product (GDP). Of the total market, the organized sector accounted for Rs. 350 billion (about 3. 5 % of the full total) of the full total revenues. Regarding to AT Kearney, the structured retailing industry is likely to mix Rs. 1000 billion earnings tag by 2010. Customarily, the retail industry in India made up of large, medium and small grocery stores and medicine stores which could be categorized as unorganized retailing. Most of the planned retailing in India acquired recently started and was mainly concentrated in metropolitan locations. Within a short span of five years retail sector in India has witnessed great changes mainly due to a gradual upsurge in the disposable earnings of the center and upper-middle class households. In order to reap the benefit for growing economy more and more corporate houses including large real house companies are getting into the retail business, directly or indirectly, by means of mall and shopping mall builders and managers, hence the ocean change in retail sector is highly visible.

Indian Organized retail Sector and the Major Players:

The Industrial Coverage Image resolution, 1991 has given a fresh tool known as 'LPG' i. e. Liberalization, Privatization, and Globalization which led to several structural and demographic changes of the Indian Market. These changes proclaimed the start of the new age of Retailing in India and helped the retail industry to expand. Besides this previous decade has observed the development of GDP at the pace of 6. 6 per cent, resulting in increased income levels and higher purchasing electricity for the populace. 'Though the first signs of arranged retail were noticeable even in the 1970s when Nilgiris (food), Viveks (consumer durables) and Nallis (sarees) started out their operations' but the retail still possessed a long way to visit. 'While these suppliers gave the required ambience to customers, little effort was designed to introduce world-class customer support methods and improve functioning efficiencies. Moreover, the majority of these modern advancements were limited to south India, which continues to be seen as a "Mecca of Indian Retail". Change in Indian retail has occurred in various stages and the trip is still in continuation. Notable among the early entrants were players like Shoppers Stop, Pantaloon, Ebony, Foodworld, Subhiksha, etc. Thus one may easily make out that the major players of prepared retail sector in India are:

Figure 1

The Study

Research Problem:

The goal of this newspaper is to study the introduction of modern retail and its impact on traditional channel partners like store and distributors. The study problem can be designed in terms of following questions: What exactly are new retail types? What supply chain management tools have employment with modern retail? What impact these outlets will have on vendors and distributors? The provide answers to these questions, the aims of the analysis are:

To analyze the rising retail formats

To review the impact of modern retail outlets on the traditional distribution system

To study the variety of SCM tools employed by the present day retail formats

To assess the role of SCM request in modern retails formats

Research Technique:

To gather the mandatory information because of this study, both extra and primary source of data was used. Productive most important data was collected from the suppliers and distributors in both cities through structured personal interviews. The info other than this was gathered through traditional supplementary sources like journals, reports articles, websites and literature.

The opportunity of the analysis is limited to the two metropolitan areas Moradabad, Uttar Pradesh and Delhi, India. These places differ in conditions of their society, demographics, size and volume of business and the marketing strategies employed by the non-durable and durable goods producers in two different cities. Further these are un-researched in this aspect.

Sample account of respondents:

The data was accumulated from the various types of retail types working in consumer non-durable and durable goods like tooth paste, soap, chocolates, cold refreshments, refrigerators, cell phones and tvs. The inclusion criterion was the option of the products chosen for the analysis. Following tables identify the sample account:

Sample of Dealers/Retailers

Sample Descriptors

Profile of Durable Goods Dealers

Profile of Non-Durable Goods Retailers

Sample Size (N)

50 Merchants/Dealers

50 Retailers


Moradabad and Delhi

Moradabad and Delhi

Retail Format

Multi Brand Outlet stores, Exclusive and

Dealers cum distributors

General Store / Provisional store Confectionary Store, Supermarket, and Departmental Store

Inclusion Criteria

Availability of Products

Availability of Products

Table 1. 1

Sample of Distributors

Sample Descriptors

Profile of Distributors

Profile of Distributors

Sample Size (N)

30 Distributors

15 Distributors


Moradabad and Delhi

Moradabad and Delhi


HUL-5, Godrej-3, Cadbury-4, Pepsi-4, Coke-4, ITC-5, Pillsbury-3, Nestle-2

Sony-1, LG-2, Samsung-2, Nokia-2, Motorola-2, Neelkamal-2, Supreme-2 and Whirlpool-2

Inclusion Criteria

Availability of Products

Availability of Products

Table 1. 2

Emerging Retail Platforms in India

India is observing resurgence of Retail sector whereby it has grown from the original Mother and Pop stores present occasionally in the neighbourhood wedding caterers to the convenience of the consumers to the introduction of shopping centers mainly in urban centers with facilities like car parking and finally progress of modern retail types like hyper and excellent markets seeking to provide customer with '3 V's- Value, Variety and Quantity' (Lakshmi Narayanaswamy, Mudit Sharma, ). A brief description of the various modern types of retailing appearing in India:

i. Malls:

Malls are an upcoming style in retail market. They form major share of structured retailing today. Located mainly in metro places, in closeness to urban outskirts. Runs from 60, 000 sq feet to 7, 00, 000 sq ft and above. They provide a great shopping experience with an amalgamation of product, service and entertainment; all under a common roof. For example DLF City Middle, The Metropolitan and Big Bazaar around Delhi, Crossroads and R-Mall in Mumbai and Spencer's in Chennai are revolutionizing just how middle income Indian consumers shop. These malls have very effective and effective source chains which ensure product availability and monitoring of the product is possible easily.

ii. Specialty Stores:

A area of expertise store concentrates on a limited volume of complementary items categories and provides a high level of service in an area typically under 8, 000 square toes (Levy, Michael 2006); Chains like the Bangalore based Kids Kemp, the Mumbai catalogs shop Crossword, RPG's Music World and the changing times Group's music string Globe M, are focusing on specific market segments and have set up themselves strongly in their industries. Since this format has less diverse product range thus it is comparatively easy to manage source chains.

iii. Discount Stores:

According to Levy and Weitz a Discount Store is a store that offers a wide variety of products, limited service, and low prices. Discount stores offer both private brands and countrywide brands, but these brands are usually less fashion-oriented than brands in shops. The discount stores or stock outlets, offer discounts on the MRP through retailing in bulk reaching economies of level or extra stock left over at the growing season. The product category can range from a variety of perishable/ non perishable goods. The coverage of products in this type of format is quite considerable and the demand fluctuation is also high thus if offers troubles in managing supply chains effectively.

iv. Department Stores:

Levy and Weitz defines Shops as the suppliers that carry a wide variety and deep assortment, offer some customer services, and are prepared into split departments for exhibiting merchandise. They are the large stores ranging from 20000-50000 sq. feet, catering to a variety of consumer needs. They could be further categorized into localized departments such as clothing, playthings, home, groceries, etc. Departmental Stores are anticipated to dominate the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Buyers Stop, which started in Mumbai and today has more than seven large stores (over 30, 000 sq. ft) across India and even has its own in store brand for clothes called Stop!. It really is one of the very most complicated retail formats providing to the most varied set of consumer needs. It becomes very difficult to control the inventory of so many products and brands.

v. Supermarkets:

'As described by Food Marketing Institute "Supermarket is self-service grocery with grocery, meats and produce division and minimum gross annual sales of 2 mil". In India, there keeps growing range of such stores especially in metros and big towns' (Anjali, Gupta 2006). They are situated in or near home high roadways. These stores today donate to 30% of most food & grocery sorted out retail sales. Super Marketplaces can further be categorised in to tiny supermarkets typically 1, 000 sq foot to 2, 000 sq foot and large supermarkets which range from of 3, 500 sq feet to 5, 000 sq ft. having a solid concentrate on food & grocery store and personal sales.

vi. Hyper Market:

Combination food and medicine stores average 4, 600 rectangular meters of offering space. Hyper marketplaces are even much larger, varying between 7, 400 and 20, 400 rectangular meters. The Hyper markets combines supermarket, discount and warehouse retailing key points. Its product selection goes beyond consistently purchased goods and includes furniture, large and small devices, clothing and many items. The essential way is bulk display and minimum handling by stores workers, with discounts offered to customers who are willing to carry heavy gadgets and furniture from the stores. Pantaloon Retail India Ltd. (PRIL) is now emerging as India's first Hyper Market chain. Modeled such as global Hyper Market Chains like Wal-Mart, the best Bazaar will stock several product categories.

vii. Convenience Stores:

These are relatively small stores 400-2, 000 sq. ft located near home areas. They stock a restricted range of high-turnover convenience products and are usually available for extended cycles during the day, 7 days per week. Prices are just a little higher because of the convenience prime.

viii. MBO's:

Multi Brand retailers, also called Category Killers, offer several brands across an individual product category. These usually prosper in busy market places and Metros.

Supply Chain Management Tools Employed by Modern Retail Types:

The rate at which transformation is taking place in Indian Retail Sector is unprecedented; the complete retail sector is under heading sea changes. The planned retail sector is without doubt having a great ocean of opportunities in front of it but it offers certain troubles too. The task of an effective and efficient dealer is to fulfill the customer at the right time with the right product at the right cost, on a regular basis. The challenges a retail organization encounters are many like: huge stock-keeping units (SKUs), seasonal versions of products necessitating the launch of new SKUs, intricate tax structures, the large geographic spread of the united states, changing consumer needs, etc. This level of efficiency demands retail automation and included supply chain management for dealer and a retail company has to intend to make this system work properly and try to fulfill the needs of each customer without fail.

The finding of automatic recognition technologies has been a benefit to retailing; these were first introduced internationally in the 1960s to assist logisticians identify products in the resource chain. Following are the recent trends in the technologies to trace the products in the supply chain:

i. Barcodes & Multi-dimensional barcodes:

Corporations have grown to be obsessed with driving down logistics-related costs, including transportation and warehousing. To be able to facilitate the activity of goods in transit and reduce the price of transportation and also to ease the procedure all most all items in a syndication centre are proclaimed with UPC barcode. In fact, Walmart's buying office has a sign reading, 'If Your Product Doesn't Have a Barcode, Don't Bother to Have a Chair in Our Waiting Room. ' Even in India the Sellers in structured sector are beginning to barcode all their products; organizations like Foodworld (RPG Group) and Buyers' Stop (Raheja Group) have urged their distributors to supply goods only with standard barcodes.

ii. RFID:

Radio Frequency Identification (RFID) can be an early technology needs to emerge. In order to stop the pilferage of goods in over congested shops this technology takes on a great role. It is expected that in approaching few years, RFID will immediately connect physical products to logistics systems as the one truly automatic recognition technology. This technology helps to track the merchandise and customers' use pattern even post-purchase. P& G currently tags (RFID) a small number of instances and pallets of products as part of a trial with Wal-Mart stores in USA. The business is concentrating on the supply string and hasn't even begun to think about what's going to happen to the things post-sale.

iii. Retail Software:

Most vendors in the planned sector in India have to make use of retail software in their returning end and leading end operations and are constantly looking to up grade their systems as they evolve. To greatly help this growing retail sector obtain the best, many Indian software companies are suffering from software packages to match the different and varied requirements of these retailers. One of the few who are in. the marketplace is Chennai-based Polaris Retail InfoTech Ltd, a subsidiary of Polaris, which has entered the market with its software, Retail Excel. Reputed organizations like Wipro Infotech, Tata Consultancy Services and NCR Technologies have created strong, retail automation software. The Chennai-based T. V. Sundaram Iyengar & Sons are currently test-marketing their new point-of-sale system for small and medium retailers in grocery store and other related segments. The Bangalore centered VMoksha Technologies has developed software for the retail segment while Pune-based Zensar Technology has tangled up with the RPG group for retail software. The list of that growing retail software is growing by the day. There are a great many other plans like MS Retail, Shopper, Retail Expert, Retail Magik, etc. that help allow the fast implementation of retail automation in India available for sale. Not to mention large ERP plans like IDA, SAP Retail, BAAN, Island Pacific, etc.

Analysis and Findings

Impact of Modern Retail Outlets on Traditional Distribution System:

The amount of modern retail outlets is growing daily. The clients show shopping choice for these shops but the scope to which they will influence the original retail is uncertain. There are certain types of products which customers favor to shop from the present day retail outlets. While the customers still like neighbourhood shops because of their daily groceries and requirements. The research of the info gathered from traditional route partners is:

The data was accumulated by the original retailers dealing in non-durable products in Delhi and Moradabad to learn the impact of modern retail on the business. It was seen that in Moradabad 70% of the stores feel that the impact of modern retail forms will make a difference plus they too need to focus on their types to meet the customer and companies' requirement. Other 20% said it will have average impact on the business and it could be cope-up whereas 10% suppliers were of the view that you won't have influence on the business. They also opined that they are in operation from previous so a long time and facilities like home delivery and credit which they provide to their customers are not provided by these new formats. While stores in Delhi were of different judgment, 15% retailers pointed out that modern format have already inspired their business highly and their sales have reduced by 50% and other 40% said that the affect is important on the business plus they need to respond appropriately. Around 40% vendors said that it is having average effect whereas 5% sellers positioned in the home areas said that the affect of the present day forms is unimportant for his or her business.

Figure 2

The data gathered from the durable products traders also shows the mixed response for the growth of modern retail store. In Moradabad 70% of the traders said the impact of modern retail will make a difference and they too need to focus on their types to meet up with the customers' objectives and companies' requirements. Other 30% sellers were of the view that the facilities like home delivery and credit which they provide with their customers will help in marginalizing the impact of new formats. While dealers in Delhi were of different impression, 15% dealers pointed out that modern format have previously influenced their business highly and their sales have reduced by 50%. Other 40% said that the affect is important on the business plus they need to respond accordingly whereas 5% retailers found in the residential areas said that the affect of the present day platforms is insignificant on their business.

Impact of Modern Retail on Traditional Retail Outlets



















Figure 3

Apart from suppliers, modern retail outlets also have influence on the vendors. It was witnessed from the info collected by the non-durable vendors that 70% marketers of different non-durable brands in mind said that the impact of the modern retail formats on the business is likely to be moderate because they are the main one who supply to these platforms. But other 20% said that the big modern retail outlets make purchases straight from the companies thus their will be significant impact. While other 10% feels that the impact is likely to be high.

Figure 4

Majority of the vendors working in consumer durables like CELL PHONES said that the impact of modern retail is likely to be high because stores like Big Bazaar, Subhiksha have previously started procuring straight from the firms and they pass on the margins to the clients. While for products like CTVS, fridges and moulded furniture the impact is going to be moderate and marketers provides better geographical coverage and inventory turnover. They also shared which may be in near future, the companies seeking benefit of reducing the distribution margin through direct resource to these stores can result in have moderate impact on their business.

Impact of Modern Retail on Durable Goods Distributors











Very High




Very Low




T. V. /Fridges &

Moulded Furniture

Figure 5

Case-Study Research of SCM Applications in Modern Retail-


Tanishq is a department of Titan Industries Ltd, India's greatest jewelry maker. It really is India's only fine jewellery brand with a countrywide presence, and an recognized leader in the branded jewellery market. Tanishq is sold exclusively by using a company-controlled retail string with over 60 boutique stores disperse over 39 cities. This network comes and reinforced by a network of 32 CFAs (Clearing and Forwarding Real estate agents). With the network of boutique stores poised to expand, the Tanishq management had to increase visibility along the supply chain, CFAs and boutiques across the country. The Tanishq team picked Wipro Infotech, India's top IT alternatives company, to construct the answer. The Wipro Infotech team designed a web-based solution, Goldmine, to aid the circulation of information between various circulation entities. Goldmine offers a platform for the sales, management and manufacturing plant clubs of Tanishq to monitor key activities and variables along the' distribution chain. In addition, it acts as an integration program to pull mutually existing information systems in the company such as SAP/Oracle, DOS-based point-of-sales systems in boutiques, without adjustments. Wipro Infotech developed the solution using the. NET platform with an ASP. NET presentation layer.

Challenges attended to: The most important supply chain management issues resolved by Tanishq are in the regions of reducing circuit time, increasing efficiencies and lowering costs in the regions of tracking movements of goods and sales indenting, order position, sales visibility, communication (accounts) and exception reporting.

Goods in transit: The brand new system provides details of goods which have been dispatched from the manufacturing plant to the CFA and then to the boutiques. This functionality also enables monitoring of stock come back circumstances from the boutiques to the CFA. And following that to the factory. This can help the organization record goods in transit and keep an eye on loss of goods effectively if any.

Indenting: The buying of goods by the boutiques is computerized. They can refer to online product catalogues and price lists before inserting orders. Goldmine enables online indenting for replenishment, shop-specific indenting as well as customer-specific indenting. Such online indenting is dependant on norms established by the administrator for each and every variant. Hence, the company can enforce advisable credit norms through Goldmine at the point of-sale system. Say a boutique has a great background, providing Rs 20, 00025, 000 price of bangles, however, not up to the Rs 50, 000 level it possessed reached before, the business can set prudent indenting levels for gold to the boutique. These details is transmitted to the point-of-sale system via Goldmine and is actually enforced. Previously, under the manual system, the business had no method of organized enforcement of such norms. .

Order position: This functionality provides presence on the status of orders put by boutiques. That is made possible by the daily synchronization between the Oracle system at the manufacturing plant and the web-based solution. Boutique users no more have to send emails or call up anyone to discover the status of the orders. They get it at their own convenience from Goldmine.

Sales awareness: With sales information streaming in from the boutique into Goldmine, visibility of sales from each boutique is improved. Management can now track the potency of marketing programmes and marketing promotions at the boutique level, relating to category and price group. Bestseller information for those boutiques is currently available on demand.

Communication and exclusion reporting: Goldmine provides a platform for dissemination of information through content uploads, bulletin planks, and so on. Home elevators local platinum rates (the main component of materials cost), market information, promotion program details and product catalogues are sent instantly. The business has over 40, 000 product variants, so this system capability is crucial. The system also offers discussion on inquiries brought up by users at the boutiques for producing and changing new and existing products. Discussions between manufacturing plant users and' boutique users are monitored and an escalation device with alerts is in place in case inquiries are not taken care of promptly.

Future ideas: As Goldmine builds up the supply chain repository, Tanishq intends to build a data warehousing program empowered with advanced data mining using SQL server. This may facilitate the use of relevant business intelligence in real time in the boutiques during a customer touch. Market head Tanishq will establish its benchmarks in retail automation and its applications for many on the market to check out in future.

(b) Consumers' STOP

Shoppers' Stop has applied the US-based retail ERP system JDA. JDA facilitates the integration of most retail functions in Purchasers' Stop proficiently.

Efficiencies in the buying process: It is JDA's goods management system that now functions the buying process and merchandise management control methods. Pursuant to range width and variety plans, purchase orders are issued to suppliers through the central merchandising function. You see, the delivery of stocks and shares is then managed on a weekly basis through the delivery authorization process mechanism. The delivery authorization quantity acts as an instrument to control the overall inventory position. The delivery authorization is granted to vendors on the weekly basis based on the prior week's genuine sales and on the front sales plan (forecast). The suppliers then despatch the products to the distribution centre predicated on the purchase order and delivery authorization. Every syndication centre gets a duplicate of the delivery authorization issued for the week. With the syndication centre support is provided by the 'warehouse management system' (WMS) of JDA, which manages the warehousing function most efficiently.

The difficulties at Purchasers' Stop will be the get spread around of the 14 stores across the country in varying large sizes, which range from 25, 000 sq ft to 55, 000 sq ft, the large SKU platform, etc. Also, they have more than 300 suppliers who source stocks to three circulation centres, which in turn redistribute items to the 14 stores. Variety, coloring and size of merchandise play a very important role in delivering a great shopping experience to the client.

Profitable development: Buyers' Stop views SCM as an enabler of profitable development; it firmly believes that ERP, if used well, can spend less greatly by lowering routine times and inventory levels. Among the key motorists of the profit-driven procedure is the significant development in the retailer-supplier information integration in the source string - the introduction of merchant control over the activity of suppliers' goods into the retailer's distribution centres. This has led to more complex relationships regarding suppliers, third-party distributors and merchants through supplier-retailer cooperation where major suppliers and retailers have the opportunity to exchange timely information on consumer demand and put into practice the most appropriate product flows.

SCM at Buyers' Stop: SCM at Shoppers' Stop coordinates and integrates all activities associated with moving products, services and information into smooth operations linking all the companions in the chain, including the various departments, sellers, transporters and other providers. The system facilitates perfect supply string coordination with an able information system that controls all SCM activities. SCM at Shoppers' Stop starts and ends with the customer. The guiding beliefs is to enhance the organization's performance by managing constraints and uncertainties inherent in the earlier system. The target is on using new tools and techniques. The first step in SCM is products planning and sourcing.

In Shoppers' Stop, SCM is seen from a tactical perspective rather than just as an operational issue. Core source string issues such as month-end sales peaks, forecasting inaccuracy, constraint-based planning and so on continue steadily to create problems for Indian suppliers even after ERP implementation. Many organizations applied SCM as an instrument to contain costs. and discovering means for reducing pressure on margins due to competition. The mindsets of organizations underwent a change when they accepted to consider the use of such involved SCM from end-to end. The first step in SCM is goods planning and sourcing. The number width and variety planning process is employed to develop meaningful sales and space strategies. The look process starts six months before the real beginning of the season to fill an agreed amount of video footage with a product that fits customer demand. The task is to develop balanced range which gives the appropriate mix of color, price, styling and cloth so that the customer is given the best possible choice all the time. Also on the agenda is having a variety of own-label products and brands so so it aligns with the business's tactical goal of increasing own-label participation to operate a vehicle store loyalty through exclusivity, and complementary to overall brand strategy. Once the range width and collection planning is performed, the next problem is to source the merchandise. The buying section then makes a decision on suppliers who will supply the necessary merchandise according to the programs.

While selecting suppliers, various variables are believed, such as earlier history, quality; hit rates in delivering goods promptly, margin and vendor's assistance in crisis situations, developing capacity, future capacity growth plans, financial capacities to get for development etc. The greatest challenge is to get the act alongside one another and seamlessly combine the parts in such a way that the effectiveness of the whole string is more important than that of a person link of the string.

Future plans: Future assignments at Customers' Stop include Auto Data Get (ADC) at the syndication centres. Every product has an alternative barcode and since every barcode is number-based, there are likelihood of errors in procedures, leading to stock inaccuracy. Buyers' Stop has already create the ADC for the cashier and stock-taking process. It further programs to utilize it for the stock-receiving process and stock replenishment at syndication centres. The business is also along the way of screening a consolidated intake model, which, in time, will add value to the total SCM. Because of this the company packages to use the services of a 3PL (alternative party logistics) company that will do milk-runs on a daily basis and collect stocks and options according to delivery authorizations and deliver those to the syndication centres. Another endeavour is to combine suppliers into Customers' Stop's supply chain through digital data interchange (EDI) and the web. Purchasers' Stop is investing in B2B (web-enabled procurement alternatives) to achieve this. The theory is to disseminate and seek information faster at minimal cost and do online orders with business associates to speed up the transaction processing. The first stage of this project is already executed and major sellers are now linked to Shoppers' Stop's B2B internet site.

SCM is an integral factor in improving overall efficiency, and creates an opportunity for increased sales and customer satisfaction. Purchasers' Stop has recently initiated progressive steps in the management of its source chain consistent with its mission of 'Nothing but the best'.


The findings based on data gathered and case-analysis could be summarized as:

The thickness of modern retail outlets is very less in a city like Moradabad when compared with Delhi.

The retail and syndication outlets are not owned and retained by the companies.

Companies like LG and Samsung have their exclusive retail outlets, but they are not owned by them.

I. T. support is not available to the suppliers coping in non-durable and durable goods. An extremely small ratio of retailers use internet to create e-mails. This gives the idea that till date the technique of keeping and tracking the goods at the retailers end is manual which can cause resource chain inefficiencies.

Modern retail types are slowly but surely making their impact on the original syndication system. The retailers and marketers of non-durable and durable products both shared that these forms have moderate effect on their business. The vendors also shared that they are making required changes in their formats to handle this competition.

The customers like traditional retail outlets over modern retail for home delivery and credit facility.

The merchants and sellers for both durable and non-durable goods opined that customers prefer modern shops for factors like vast product variety, ambience, shopping comfort and advertising offers.

The distributors for both durable and non-durable goods expressed that modern retail outlets have strong technology support to keep a tabs on their inventory which is unavailable to them.

Case analysis of modern retail chains like Tanishq and Shopper's Stop exemplify the role of resource chain management request in increasing the efficiency of retail.

SCM applications at Tanishq have benefitted in significant decrease in cycle time, awareness of order status and stock profits, real time home elevators pricing and for dissemination of information through content upload, bulletin boards, etc.

SCM at Shopper's Stop helps in maintaining a multitude of SKUs and creates a chance for increased sales and customer satisfaction.


The development of Retail from lopsided small retail outlets to breath-taking, fantastic theme based mostly shops has marked the start of a new market. This expansion of the structured retail industry in the united states will mean a large number of new jobs, increasing income levels and living standards, better products, and services, a better shopping experience, and even more public activities.

This paper has analyzed the impact of modern retail on traditional retail. It enlists the factors favourable and unfavourable for traditional channels. Smooth back-end businesses and programmed inventory management systems found in modern retail formats like Tanishq, Shoppers' Stop led to reduced inventory in the supply chain suggests that companies should work upon integrating its merchant/dealers through information technology network that may further lubricate the businesses and it will provide online details of the inventory at any point of their time.

Today the customers desire for convenience, variety, availability and shopping comforts while purchasing any product. The original retailers and distributors need to update their formats according to the client requirements. They must also develop source chain strategy, procedures and helping systems that confirm to current and future requirements. The firms also have to work after integrating its merchant/dealers through it network that will further lubricate the businesses.

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