1) Raymond is a major textile manufacturer in India with integrated manufacturing facilities and a large retail presence through 300 exclusive shops in India and other countries.
2) Issar Textiles and Mangal Textiles are traditional outlets in Jaipur that sell unstitched fabric but not readymade clothing like Raymond.
3) Raymond has a streamlined supply chain from raw materials to manufacturing to retail stores while traditional outlets have longer supply chains involving more intermediaries like distributors and wholesalers.
2. INTRODUCTION
Introduction of Raymond Outlet
Raymond is amongst the first three fully integrated manufacturers in
the business of Trusted suiting in the world. It is recognized as the
most respected textile Company of India. As the flag-bearer of the
multi-product, multi-divisional Raymond Group, it enjoys over 60%
share of Indian Trusted Suiting Market.
Manufacturing facilities include three world-class fully integrated
plants in India.
Products are distributed through about 300 exclusive retail shops in
India and surrounding countries, 30,000 multi-brand retail outlets
and over 100wholesale distributors. In addition to Middle East and
SAARC countries, its products are sold to discerning customers in
over 60 countries including premium fashion labels all over the
world.
3. Introduction of Traditional Outlet
Issar Textiles and Mangal Textiles
Issar Textiles and Mangal Textiles are two local traditional outlets
situated in the local market at Jaipur. Both these outlets are
Multibrand stores. They sell the unstitched suit length and shirting's
of fabric only and not the readymade one.
Various types of fabrics with different qualities are available for sale
at these outlets like linings, checks and plain etc. Like these there
are many individual traditional outlets are running in the local
market in city.
5. Issar Textiles and Mangal Textiles
Manufacturer(Meal)
Distributors
Wholesaler
Retail Store
Customers
6. COMPARATIVE STUDY
Traditional Outlet V/S Retail Outlet:
Retail Outlet Has Good Supply Chain Management Instead Of Traditional
Outlet.
If we compare these two outlets then we find various differences. Firstly we find
that there supply chain is fast and effective in comparisons to traditional stores.
Prices are offered by the retail outlets are having fixed pricing strategy whereas
traditional stores can offer bargaining to there customer and special offers are
not provided by these stores but retail stores provide discounts etc on special
occasions.
Raymond is dealing in brand like Raymond with various design, but traditional
stores offering local as well as branded products. Products are limited in retail
outlets and offering various kinds of projects in traditional stores. Warehousing
facility is available and sufficient in retail stores but there warehouse is their
own house. Transportation cost is high and using container for transportation
but traditional stores are using trucks for transportation.
Their supply chain is company to company by Raymond but distributed and
middlemen is used in traditional store. Target customer in retail store is top-
middle class but in traditional stores economic group and middle-lower are
targeted. Retail stores plays orders through internet but in traditional stores in
local medium.
7. ANALYSIS AND RESULTS
From The Comparative Study Of Traditional Outlet And Retail Outlet
concluded that Raymond Retail Outlet Is Much More Effective Then
the two Traditional Outlet on the basis of following points:
No involvement of any intermediaries in supply chain of Raymond
(company to company outlets)
They have own logistics team
Due to this they have transportation cost advantage.
But in case of traditional outlets due to number of middlemen
involvement in between them cost becomes high for transportation
(manufacturing, distribution, wholesaler and customer). At every
stage cost is added in transportations so it is not cost effective and
it takes more time to deliver a product to ultimate customer(one
place to another).
Raymond is known for its brand image among customer and for
their good quality products but in case of traditional outlets low
quality or local quality product are available and they are not much
concern about the quality of the product.
8. RECOMMENDATIONS
As there are many intermediaries involved in the supply chain of
traditional outlets.
They are not using resources effectively and due to this they are
incurring high transportation costs.
So we suggest that their should b limited number of intermediaries
because it is necessary to reduce cost and time. Customer demand
can be fulfill on time and demand can be forecast easily by the
storekeeper.
Traditional outlets should forecast the demand on time with
suitability and there should be some specific and strong base for
forecasting demand so as to reduce the wastage of stock and
timely availability of products.
In traditional stores, flow of information is slow because they are not
using internet and latest technology and techniques for information
sharing about products. So, they should have proper server system
for that to improve the system.
9. LEARNINGS
o Traditional Outlets Are Having Low And Slow Supply Chain Then
Retail Outlet.
o Traditional Outlet Are Having More Cost And Time Then Retail
Outlet.
If we discuss various questions we conclude that whether it is a
retail store or traditional store, they supply chain plays a vital role.
They managed the supply chain by handling carrying and storage
cost. They order the order on some specific basis, may be its their
past records or their demand by customer. In retail outlets the sales
person are educated and well behaved. They take your order and
offer various services like tea, coffee etc. They are well dressed
and well trained and handled the customer with an appropriate
manner. They uses recourses on some definite manners and
according to the need. They deals with the customer in face to face
manner and its an company outlets so every delivery of products
are always on time. Quality is major factor of attractiveness of
customer.
10. Generally they forecast the demand on seasonal basis. They check
their books of records and on the basis of that they estimated the
demand.
If we talk about the traditional stores , they are not that much
concern about the customer compare to the retail outlets. They are
just offerings products of local quality and local brands. They just
offering which a middle-lower class people want. Their supply chain
is very long. They include manufacturer, wholesaler, distribute and
retailers which is very long process and consume more time and
cost. Between that if any loss of good is occurs in transit then it is
responsibility of the transporter to bear the loss.
From passing through these long distance, it takes more time and
cost and sometimes delay in demand fulfillment. Quality controller
is also not there to support to traditional stores.