CLASS:- B.

Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Unit Syllabus
1 Introduction to Financial Planning -:Financial goals, Time value of money, steps in

financial planning, personal finance/loans, education loan, car loan & home loan schemes.

Introduction to savings, benefits of savings, management of spending & financial

discipline, Net banking and UPI, digital wallets, security and precautions against Ponzi

schemes and online frauds such as phishing, credit card cloning, and skimming,

2 Investment planning: Process and objectives of investment, Concept and measurement of

return & risk for various assets class, Measurement of portfolio risk and return.

Diversification & Portfolio formation. Gold Bond; Real estate; Investment in Greenfield

and brownfield Projects; Investment in fixed income instruments- financial derivatives &

Commodity market in India. Mutual fund schemes including SIP: International investment

avenues.

3 Insurance Planning:-Need for Protection planning. Risk of mortality, health. disability and

property. Importance of Insurance: life and non-life insurance schemes. Deductions

available under the Income-tax Act for premium paid for different policies.

4 Retirement Benefits Planning :-Retirement Planning Goals, Process of retirement

planning, Pension plans available in India, Reverse mortgage, New Pension Scheme.

Exemption available under the Income-tax Act, 1961 for retirement benefits.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Supply Chain and Retail Management

Unit-1
Supply Chain Management (SCM)

Introduction to Supply Chain Management-

Supply chain management (SCM) is the coordination and management of all activities involved in the
production and delivery of goods and services to customers. It encompasses everything from sourcing
raw materials and components to manufacturing, distributing, and delivering finished products to end
customers.
The goal of supply chain management is to optimize the entire supply chain network to increase
efficiency, reduce costs, and improve customer satisfaction. Effective supply chain management
requires collaboration and coordination among all stakeholders in the supply chain, including
suppliers, manufacturers, distributors, retailers, and customers.

Concepts-
There are several key concepts that are important to understand in the field of supply chain
management (SCM):

• Visibility: Visibility refers to the ability to track and monitor the movement of goods and
information throughout the supply chain. This allows for better coordination and collaboration
among supply chain partners, and helps to identify and address potential issues before they
become major problems.

• Collaboration: Collaboration involves working closely with supply chain partners to achieve
shared goals, such as reducing costs, improving efficiency, and increasing customer satisfaction.
Collaboration can take many forms, such as sharing information and resources, developing joint
initiatives, and establishing common metrics and performance targets.

• Integration: Integration involves bringing together all the different functions and activities
within the supply chain to create a seamless and efficient flow of goods and information. This
requires breaking down silos between different departments and functions, and establishing
effective communication and coordination mechanisms.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Flexibility: Flexibility refers to the ability to quickly adapt to changes in demand, supply, or
other external factors. This requires agile and responsive supply chains that can quickly adjust
production and distribution schedules, change suppliers, or find alternative routes to market.

• Sustainability: Sustainability involves balancing economic, social, and environmental

considerations in supply chain decision-making. This includes reducing waste and emissions,
promoting ethical sourcing practices, and supporting local communities and economies.

• Risk management: Risk management involves identifying and mitigating potential risks and
disruptions in the supply chain, such as natural disasters, political instability, or supply chain
disruptions. This requires developing contingency plans, diversifying suppliers and
transportation routes, and establishing effective crisis management protocols.

Definition
According to Douglas M. Lambert, the founder of the Global Supply Chain Forum, supply chain
management is "the integration of key business processes from end user through original suppliers
that provide products, services, and information that add value for customers and other stakeholders."
According to Martin Christopher, a leading expert in supply chain management, "supply chain
management involves the management of flows between and among stages in a supply chain to
maximize total profitability."
According to Sunil Chopra and Peter Meindl, authors of the popular textbook "Supply Chain
Management: Strategy, Planning, and Operation," supply chain management is "the design, planning,
execution, control, and monitoring of supply chain activities with the objective of creating net value,
building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with
demand, and measuring performance globally."
Nature and Scope of Supply Chain Management
Nature of Supply Chain Management (SCM):

• Integration: SCM is a collaborative process that involves integrating various functions,

processes, and stakeholders across the supply chain network. It involves breaking down
functional silos and working together to achieve common goals.

• Dynamic: The supply chain environment is constantly changing due to factors such as
customer demands, technology advancements, and market conditions. As a result, SCM needs to
be flexible and adaptable to changing circumstances.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Complexity: The supply chain involves multiple tiers of suppliers, manufacturers, distributors,
and customers, which can result in a complex network of relationships and processes. Effective
SCM requires the ability to manage this complexity and optimize the flow of goods and services.

• Information Technology: Technology plays a crucial role in SCM, providing tools for planning,
communication, collaboration, and monitoring. SCM requires the effective use of technology to
manage data, analyze performance, and make informed decisions.

• Customer Focus: SCM is driven by customer demands, and effective SCM requires a deep
understanding of customer needs and preferences. Supply chain partners need to work
together to ensure that the right products are delivered to the right place, at the right time, and
in the right condition.

• Continuous Improvement: SCM is a continuous process of improvement, where supply chain

partners work together to identify areas of inefficiency and waste, and implement solutions to
improve performance. This requires a culture of continuous learning and improvement across
the supply chain network.

The scope of SCM involves the following activities:

• Planning and Forecasting: This involves creating a strategic plan for the supply chain that
outlines the demand for products and services, and the necessary resources to meet that
demand.

• Sourcing: This refers to the process of selecting and evaluating potential suppliers, negotiating
contracts, and managing relationships with suppliers.

• Production: This involves managing the production process to ensure that products are
manufactured in the most efficient and cost-effective way possible.

• Inventory Management: This includes managing inventory levels to ensure that products are
available when needed, without tying up excessive capital.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Transportation and Logistics: This involves managing the physical movement of goods from
one location to another, including selecting transportation modes and carriers, managing
customs clearance, and ensuring on-time delivery.

• Distribution: This involves managing the delivery of products to customers, including order
fulfillment, customer service, and returns management.

Components of Supply Chain Management

• Planning and forecasting: This involves analyzing data and making predictions about future
demand for products and services, so that companies can plan and adjust their production and
supply chain activities accordingly.

• Sourcing: This involves identifying and selecting suppliers who can provide the necessary raw
materials and components at the right price, quality, and delivery time.

• Procurement: This involves the actual process of purchasing the raw materials and
components from suppliers, and managing the associated documentation and payment
processes.

• Production: This involves the actual manufacturing or assembly of products, and ensuring that
they meet the required quality and quantity standards.

• Inventory management: This involves the tracking and management of inventory levels
throughout the supply chain, to ensure that products are available when needed and that excess
inventory is minimized.

• Logistics and transportation: This involves the movement of products from one location to
another, including the selection of transportation modes, route planning, and management of
transportation providers.

• Distribution: This involves the delivery of products to customers, including managing

warehousing, order fulfillment, and customer service.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Customer service and support: This involves providing support to customers, including
handling complaints and addressing issues related to product quality, delivery, and service.

Collaboration between Retailers and Vendors in SCM

Collaboration between retailers and vendors in supply chain management (SCM) is essential for
optimizing supply chain efficiency and achieving mutual benefits. Retailers and vendors must
work together to streamline the flow of goods and information between them.

Here are some key ways in which retailers and vendors can collaborate in SCM:

• Collaborative planning: Retailers and vendors can work together to plan inventory levels,
production schedules, and shipping dates. This can help to reduce inventory costs and improve
product availability.

• Sharing of data: Retailers and vendors can share sales and inventory data to help each other
better understand demand and supply patterns. This can lead to improved forecasting accuracy
and better decision-making.

• Joint promotions: Retailers and vendors can collaborate on promotional activities, such as
discounts, coupons, and other special offers. This can help to increase sales and build customer
loyalty.

• Vendor-managed inventory (VMI): VMI is a collaborative approach in which the vendor

manages the inventory levels of the retailer. This can help to reduce inventory costs and
improve product availability.

• Collaborative transportation: Retailers and vendors can collaborate on transportation, such

as sharing transportation costs or coordinating deliveries. This can help to reduce
transportation costs and improve delivery times.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Unit-2
Logistics System, Warehousing, Transportation Systems

Conceptual framework of logistics system

A logistics system is a complex network of activities, processes, and entities that work together to
ensure the efficient and effective movement of goods and services from their point of origin to their
final destination. A conceptual framework of a logistics system includes the following elements:
• Transportation: The physical movement of goods from one point to another is an essential
component of any logistics system. This can include transportation by road, rail, air, or sea.

• Inventory Management: The management of inventory involves the coordination of the flow
of goods and services in the supply chain. This includes managing stock levels, ordering, and
replenishment.

• Warehousing: The storage and distribution of goods are crucial for any logistics system.
Warehousing includes managing the receipt, storage, and dispatch of goods, as well as the
maintenance of inventory accuracy.

• Information Flow: The exchange of information within the logistics system is vital for effective
coordination and decision-making. Information flow includes communication between different
parties involved in the logistics system, such as suppliers, manufacturers, distributors, and
customers.

• Packaging and Labeling: Proper packaging and labeling are essential for the safe and efficient
transport of goods. This includes selecting appropriate packaging materials, labeling packages
with appropriate information, and complying with regulatory requirements.

• Reverse Logistics: The process of returning products from customers to the manufacturer or
supplier is an essential component of any logistics system. This includes managing the
collection, transportation, and disposal of products.

• Customer Service: Customer service plays a critical role in logistics systems, as it includes
responding to customer inquiries, resolving issues, and ensuring customer satisfaction.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Logistics system analysis and design

Logistics system analysis and design is the process of assessing the current logistics system,
identifying areas of improvement, and designing a more efficient and effective logistics system.
The process involves the following steps:

• Define the scope and objectives: The first step in logistics system analysis and design is to
define the scope of the project and establish clear objectives. This may include defining the
specific logistics activities to be analyzed and identifying the desired outcomes of the project.

• Analyze the current logistics system: The next step is to analyze the current logistics system
to identify areas of improvement. This may involve reviewing current processes, policies, and
procedures, analyzing data on performance metrics, and conducting interviews with key
stakeholders.

• Identify opportunities for improvement: Based on the analysis of the current logistics
system, identify areas where improvements can be made. This may include identifying
bottlenecks, inefficiencies, or areas where costs can be reduced.

• Design the new logistics system: Using the insights gained from the analysis, design a new
logistics system that is more efficient and effective. This may involve developing new processes,
procedures, and policies, redesigning the supply chain network, or implementing new
technology.

• Implement the new logistics system: Once the new logistics system has been designed, it is
time to implement it. This may involve training employees on new procedures, updating IT
systems, and communicating changes to stakeholders.

• Monitor and evaluate the new logistics system: Finally, it is important to monitor and
evaluate the new logistics system to ensure that it is achieving the desired outcomes. This may
involve collecting data on performance metrics, conducting regular reviews, and making
adjustments as necessary.

Warehousing and distribution centers, their location

CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Warehousing and distribution centers are facilities used for the storage, consolidation, and
distribution of goods. The location of these facilities can have a significant impact on the
efficiency of logistics operations. Here are some factors to consider when selecting the location
of a warehouse or distribution center:

• Proximity to markets and customers: Warehouses and distribution centers should be located
near major markets and customers to reduce transportation costs and delivery times.

• Transportation infrastructure: Warehouses and distribution centers should be located near

major transportation infrastructure, such as highways, railways, airports, or ports, to facilitate
the movement of goods.

• Labor availability: The availability of a qualified workforce is essential for warehouse and
distribution center operations. The location should have access to a pool of skilled workers.

• Cost of land and construction: The cost of land and construction will have a significant impact
on the overall cost of the facility. The location should be affordable and provide adequate space
for the facility.

• Regulatory environment: The regulatory environment of the location should be favorable to

warehousing and distribution center operations. This includes zoning regulations, labor laws,
and environmental regulations.

• Climate and weather patterns: The location's climate and weather patterns should be
considered when selecting a warehouse or distribution center site. Extreme temperatures,
hurricanes, or floods can disrupt operations and damage goods.

• Access to utilities: The location should have access to reliable and affordable utilities such as
electricity, water, and gas to support the facility's operations

Modes And Characteristics of Transportation Systems

Transportation systems can be classified into several modes, each with their own unique
characteristics. Here are some of the most common modes of transportation:
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Road Transportation: This mode includes cars, buses, trucks, motorcycles, and other vehicles
that use roads to transport people and goods. Road transportation is the most common mode of
transportation and is generally the fastest way to travel short to medium distances.

• Rail Transportation: Rail transportation includes trains and other vehicles that travel on rails.
This mode of transportation is usually used for long-distance travel and is often more cost-
effective than road transportation. Rail transportation is also used for transporting large
amounts of goods and raw materials.

• Air Transportation: Air transportation includes airplanes, helicopters, and other aircraft that
travel through the air. This mode of transportation is the fastest way to travel long distances
and is commonly used for international travel.

• Water Transportation: Water transportation includes ships, boats, and other vessels that travel
on water. This mode of transportation is typically used for transporting large amounts of goods
and raw materials over long distances.

Each mode of transportation has its own unique characteristics. For example, road
transportation is flexible and convenient but can be affected by traffic congestion. Rail
transportation is cost-effective and efficient for transporting large quantities of goods, but it
may not be as convenient as road transportation. Air transportation is fast and convenient, but
it can be expensive. Water transportation is slower than other modes of transportation but can
transport large quantities of goods and raw materials.

Key issues and practices involved in SCM

Supply chain management (SCM) refers to the processes and practices involved in the
management of the entire network of businesses and individuals involved in the creation and
delivery of products and services, from raw materials to finished goods. SCM involves a range of
key issues and practices that organizations need to consider to optimize their supply chain
operations. Some of the key issues and practices involved in SCM include:

• Supplier Relationship Management: This involves developing and maintaining strong

relationships with suppliers to ensure that they are able to provide the necessary materials,
components, or services at the right quality, quantity, and price.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Inventory Management: This involves managing inventory levels, ordering, and scheduling to
ensure that products are available when they are needed, without tying up excess working
capital.

• Logistics and Transportation Management: This involves managing the movement of goods
between suppliers, manufacturers, distributors, and customers, including transportation,
warehousing, and distribution.

• Risk Management: This involves identifying and mitigating risks that could impact the supply
chain, such as disruptions in transportation, natural disasters, or supplier bankruptcies.

• Sustainability: This involves considering the environmental, social, and economic impacts of the
supply chain, and developing strategies to minimize negative impacts and enhance positive
ones.

• Performance Measurement: This involves tracking key performance indicators (KPIs) such as
on-time delivery, lead times, inventory turns, and customer satisfaction, to monitor the
effectiveness of the supply chain and identify areas for improvement.

• Technology and Data Management: This involves leveraging technology and data to optimize
supply chain operations, such as using analytics to identify trends and improve forecasting, or
implementing automation to reduce manual processes and improve efficiency.

Effective SCM requires a holistic approach that considers all of these key issues and practices,
and involves collaboration and communication across all parts of the supply chain network.
Organizations that can successfully manage their supply chains can achieve significant
competitive advantages, such as reduced costs, improved customer service, and increased
agility and resilience
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Unit-3
Retail Market Strategy
Concept-
Retail market strategy refers to the plan of action that a retailer uses to attract customers,
generate sales, and achieve its business objectives. It involves the selection of target customers,
the development of a value proposition, the creation of a marketing mix, and the
implementation of tactics to drive sales.

Here are some key components of a retail market strategy:

• Target market: The first step in developing a retail market strategy is to identify the target
market. This involves understanding the demographic, psychographic, and behavioral
characteristics of potential customers and tailoring marketing efforts to appeal to their needs
and preferences.

• Value proposition: A value proposition is a statement that communicates the unique value that
a retailer offers to its customers. It should be clear, concise, and compelling, and it should
differentiate the retailer from its competitors.

• Marketing mix: The marketing mix includes the four Ps of marketing: product, price, promotion,
and place. Retailers need to consider how they will differentiate their products from those of
their competitors, set prices that are competitive and profitable, promote their products to
attract customers, and choose the right distribution channels to reach their target market.

• Sales tactics: Retailers need to implement tactics that will help drive sales. This may include
offering promotions, using social media to engage with customers, creating loyalty programs,
and providing exceptional customer service.

• Performance metrics: Finally, retailers need to track and measure the performance of their
retail market strategy. This involves monitoring key performance indicators (KPIs) such as
sales, customer satisfaction, and profitability, and making adjustments to the strategy as
needed.

Sustainable Competitive Advantages Building Through

CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Sustainable competitive advantages are long-term advantages that a company can build and
maintain over its competitors. They allow a company to consistently outperform its
competitors and maintain a leading position in the marke

Advantages –
• Unique value proposition: A company's unique value proposition is what sets it apart from its
competitors. It's important to identify what makes your product or service unique and
communicate that to your customers.

• Brand identity: Developing a strong brand identity can help your company stand out in the
market. It's important to create a brand that resonates with your target audience and
communicates your company's values and mission.

• Customer experience: Providing a superior customer experience can give your company a
sustainable competitive advantage. This includes everything from the ease of use of your
product or service to the quality of customer service.

• Innovation: Companies that consistently innovate and develop new products or services are
more likely to have a sustainable competitive advantage. It's important to stay ahead of trends
and anticipate customer needs to develop innovative solutions.

• Operational efficiency: Companies that operate efficiently can offer their products or services at
a lower cost, which can give them a competitive advantage. This includes everything from
supply chain management to optimizing production processes.

• Intellectual property: Patents, trademarks, and copyrights can give a company a sustainable
competitive advantage by protecting their intellectual property. This can prevent competitors
from copying their products or services and entering the market.

• Network effects: Companies that create products or services with network effects can develop a
sustainable competitive advantage. This means that as more people use the product or service,
it becomes more valuable, making it more difficult for competitors to enter the market.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Customer loyalty
Customer loyalty is one of the most important components of building a sustainable
competitive advantage. Here are some points on how to build sustainable competitive
advantage through customer loyalty:

• Consistently meeting customer needs: To build customer loyalty, a company must consistently
meet the needs of its customers. This requires understanding customer preferences and
providing high-quality products or services that meet those needs.

• Personalization: Providing personalized experiences to customers can help build a strong

connection with them. This includes personalized communication, personalized product
recommendations, and personalized customer service.
• Strong customer service: Providing excellent customer service is crucial for building customer
loyalty. This includes responding promptly to customer inquiries and resolving issues quickly
and efficiently.

• Loyalty programs: Loyalty programs can incentivize customers to continue doing business with
a company. This can include discounts, exclusive offers, and rewards programs that encourage
customers to continue making purchases.

• Community building: Building a community of customers can help build customer loyalty. This
can be achieved through social media engagement, user-generated content, and customer
reviews.

• Innovation: Continuously innovating and improving products or services can keep customers
engaged and loyal. Companies that are always looking for ways to improve and innovate are
more likely to retain their customers.

• Corporate social responsibility: Engaging in corporate social responsibility initiatives can help
build customer loyalty. Customers are more likely to support companies that share their values
and contribute to causes they care about.

Distribution And Information System

CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

Distribution and information systems are critical components of any retail market strategy. An
effective distribution system ensures that products are delivered to the right place at the right
time, while an information system provides retailers with the data they need to make informed
decisions about inventory management, pricing, and marketing.

Distribution System:
The distribution system involves the movement of products from the manufacturer to the
retailer and finally to the customer. A well-designed distribution system can help retailers
reduce costs, improve efficiency, and increase customer satisfaction. Some key elements of an
effective distribution system include:

• Supply Chain Management: Retailers need to work closely with manufacturers, wholesalers,
and logistics providers to ensure that products are delivered to the right locations at the right
time. Supply chain management involves coordinating and optimizing the flow of goods,
information, and money across the entire supply chain.

• Inventory Management: Retailers need to maintain the right level of inventory to meet
customer demand without incurring excess costs. A well-designed inventory management
system can help retailers balance supply and demand, reduce stockouts, and minimize
inventory carrying costs.

• Logistics and Transportation: The logistics and transportation system plays a critical role in
ensuring that products are delivered to the right locations on time. Retailers need to work with
logistics providers to optimize shipping routes, reduce delivery times, and minimize
transportation costs.

Information System:
An effective information system provides retailers with the data they need to make informed
decisions about inventory management, pricing, and marketing. Some key elements of an
effective information system include:

• Point-of-Sale (POS) System: POS systems are used to capture sales data and track inventory
levels in real-time. This data can be used to identify sales trends, monitor inventory levels, and
optimize pricing and promotions.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management

• Customer Relationship Management (CRM) System: CRM systems are used to track customer
behavior and preferences. This data can be used to personalize marketing messages and
improve customer engagement.

• Business Intelligence (BI) System: BI systems are used to analyze data and identify patterns and
trends. This data can be used to make informed decisions about inventory management,
pricing, and marketing.

Vendor relations
Vendor relations play a crucial role in the success of a retail market strategy. Retailers need to
develop strong relationships with their vendors to ensure a steady supply of quality products,
negotiate favorable terms and pricing, and collaborate on promotional activities. Here are some
key factors that retailers should consider when developing vendor relationships:

• Communication: Clear and consistent communication is essential for developing strong vendor
relationships. Retailers need to communicate their expectations and requirements to their
vendors and keep them informed about any changes in product demand or pricing.

• Collaboration: Retailers should work closely with their vendors to develop mutually beneficial
strategies for product promotion, pricing, and inventory management. By collaborating with
vendors, retailers can leverage their expertise and resources to improve the customer
experience.

• Trust: Trust is essential for building long-term vendor relationships. Retailers need to
demonstrate their commitment to working with vendors fairly and transparently, while
vendors need to deliver quality products and services consistently.

• Performance Metrics: Retailers should establish performance metrics to evaluate vendor

performance and identify opportunities for improvement. These metrics could include on-time
delivery rates, product quality, and customer satisfaction.

• Contract Terms: Retailers should negotiate favorable contract terms with their vendors to
ensure that they receive the best possible pricing and terms. These terms could include volume
discounts, payment terms, and return policies.
CLASS:- B.Com & BBA II YEAR SUBJECT: - Supply Chain and Retail Management