What are the critical challenges faced by the Retail Sector in SCM?

Supply chain management is crucial for the Indian retail sector, as millions of small producers and small farmers in the rural sector should be included in the system. In India, the rural market accounts for 65 per cent and the small producers (farmers) with an average holding size of less than two hectares will have to be taken into account. That is the real challenge.........

Hi All

Kindly find few key challenges from my side in the Retail Industry, there may be many more….

Key Business Challenges in Retail:

-Enable Multi Channel Retailing

-Improve New Product Introduction

-Increase Operational Efficiency

-Achieve True Customer Centricity

-Optimizes Labor Usage

-Create New Opportunities through Globalization

- Enable Central Demand Forecasting and Optimization

Key IT Challenges in Retail:

-Deliver Short Term ROI

-Adopt Global Communication Standards

-Provide Consistent Master Data

-Improve Mass Data Handling

-Harmonize System Landscape

-Manage Distributed Landscape

Regards

Mihir Kumar Jhaveri, PMP, CSCM

Senior Manager

Today given the leaps in the IT sector, our software professionals are geared to churn up a programme that can narrate a data of FMCG in A/A+ towns and likewise in B/C Sectors as well.

But the real challenge is which BRND to stock in one sector of FMCG?? Soaps for example would be one of the most difficult item to really stock!!Because believe you me, If I do not find my soap on the rack I would go for the next best and whoaaa it has a better deal too!! So FMCG sector woul;d be the most difficult to be decisive in. You would need the top 10 brands most definitely!!

So while executing a large retail shop in rural areas particularly, there should be a thought for the local product as well as these are what the people are more used to and in these areas everybody knows everybody. Also to understand is that the behavior pattern in these areas is politically governed and these factors really can hamper / forward certain priorities of a brand!!

I have thought this purely from a product success POV so I really do not know how helpful this might be!

I think this is a major concern because today the business environment is very dynamic. Retail sector has a huge competitin from the Foreign competitors also. Therefore, the ability of an organization to thrive in such an unpredictable business environment depends on its flexibilty to adapt to the changes.

Retail outlet is a place with large number of footfalls. With every increase in footfall the retailers have to be aware of their changing needs and requirements. Only being aware wont help, they also have to be fast responsive to their demnds also.. This becomes more and more difficult as the number of customers increases...

1. Managing supply chains requires retailers to perform a delicate "balancing act" that simultaneously meets multiple needs. While delivering high service levels as they manage global supply chains, retailers must keep costs low in order to remain competitive. Other pressures come from more demanding consumers as well as from the increasingly global nature of the industry, which has retailers both sourcing and selling products in more places around the world.
2. By better connecting product information, processes, systems, and people, Microsoft and its partners can address both current and future complexity in this area with cost-effective, integrated solutions that help retailers drive enhanced supply chain efficiency and trading partner collaboration. These solutions address key retail business issues such as making order and replenishment processes more effective; lowering inventory levels in warehouses and distribution centers; improving out-of-stock levels; reducing paperwork; and improving data accuracy.