SUPPLY CHAIN MANAGEMENT OF SHOPPING JINNI January 7, 2014 Authored by: Dinesh Kumar (CEO & Co- Founder of Shoppingjinni.com) SUPPY CHAIN MANAGEMENT POTENTIAL BENEFITS APPLYING SUPPLY CHAIN MANAGEMENT: • Lower administrative costs • Lower search costs for buyers • Reduced Inventory costs  Increasing suppliers corner  Reducing inventory carried • Lower transaction costs:  Automation, Eliminating paperwork • Increased Supplier flexibility by ensuring just-on- time products delivery. • Improved quality of products by increasing cooperation among buyers and sellers. • Decreased product cycle time by sharing of designs and production Schedules • Increased opportunities for collaborating with suppliers and distributors • Greater price transparency. • However, some risk is posed by increased globalization and Consolidation

1. SHOPPING JINNI
SUPPLY CHAIN
MANAGEMENT (SCM)

2. POTENTIAL BENEFITS APPLYING SUPPLY CHAIN MANAGEMENT :
• Lower administrative costs
• Lower search costs for buyers
• Reduced Inventory costs
 Increasing suppliers corner
 Reducing inventory carried
• Lower transaction costs:
 Automation, Eliminating paperwork
• Increased Supplier flexibility by ensuring just-on-time products delivery.
• Improved quality of products by increasing cooperation among buyers and
sellers.
• Decreased product cycle time by sharing of designs and production
schedules
• Increased opportunities for collaborating with suppliers and distributors
• Greater price transparency.
• However, some risk is posed by increased globalization and consolidation

3. PROCESS:
SHOPPING JINNI
SUPPLY CHAIN MANAGEMENT

4. Supply chain management impacts on Shopping jinni
 Decrease Costs of inventory investment
 Customer service
 Product availability and delivery.
 Product or service quality (through choice of suppliers)
We often have several tiers of suppliers.
 Our company's Tier 1 suppliers are the firms that our company buys from.
 Our company has more control over Tier 1 suppliers than over Tier 2 &
Tier 3 suppliers
IMPACT ON SHOPPINGJINNI

5. Our supply chain is the network of activities that deliver a products to the
customer.
 Sourcing (purchasing) of Products, parts, goods for sale, or service
inventories
 Order entry.
 Operations planning.
 Transformation process (Products or services).
 Quality management.
 Logistics:
Transportation (traffic)
Distribution (delivering the product to customers)
 Our suppliers should help our firm achieve its competitive objectives
SUPPLY CHAIN

6.  Minimize the cost of materials and material movement.
 Minimize inventory investment.
 Ensure timely delivery of materials at every level of the supply chain and to
customers (product availability).
 Ensure quality of materials.
 If needed to replace the product 10 days Replacement warranty.
 The objective of information sharing is to match demand and supply. (What will
be available when, and from whom?).
 Demand: actual sales, sales forecasts, booked orders, custom orders.
 Product availability: current inventory, Supplier Availability plans, shipping
schedules, shipments.
 Quality: Suppliers' products with quality.
OUR OBJECTIVES

7. • We collects point-of-sale data at the Order Stock Systems and updates
inventory by SKU (Stock keeping unit) in real time. SKU's are marked with bar
codes or radio frequency ID (RFID) tags. We has options:
 Use point-of-sale data to forecast future sales and transmit order to supplies.
 Automatic replenishment: retailer transmits point-of-sale data to Supplies who
determines the retailer's current needs and ships what is needed.
TACTICS FOR REDUCING INVENTORY COSTS BY VENDOR-MANAGED
INVENTORY (VMI)
 Vendor-managed inventory
 VMI in retailing: The supplier electronically accesses the retailer's database for
sales information for the supplier's products.
 Supplier ships what is needed. (automatic replenishment)
 Supplier is responsible for updating the customer's database when goods are
shipped.
 Supplier is responsible for anticipating customer's future needs
 Pioneered by Wal-Mart (Retail Link software)
BEST THING WE DO

8.  Less Inventory management
 Good Packing orders for shipment
 Best Delivery
 Less Customer returns
PACKING ORDERS FOR SHIPMENT
• Our Items are identified by bar codes or radio frequency ID (RFID)
• Our Warehouse workers put ordered items in crates
• We Sorter sends each item to the correct, bar-coded box for the customer who
ordered it.
• Our Packing slip is printed
• Our Boxes /Packet are packed, taped, weighed.
• Our Boxes /Packets are put on trucks for shipment to customers
REDUCE ISSUES IN SUPPLY CHAIN DUE TO:

9.  Objective: Deliver when promised, while minimizing delivery costs
 Brick-and-mortar stores (like Sears) can ship items to stores for customer
pickup.
 Online merchants use package delivery as per committed time with shopping
jinni packing for most shipments to the Customer.
 Customers usually pay a standard shipping cost for quick services.
OBJECTIVE TO REDUCE LESS RETURNS:
 Our Objective: minimize the cost of customer returns and reduce "hassles" for
customers
 25% of Internet orders result in a customer return
 Problems in returning goods are the 2nd biggest reason that consumers
don't buy online.
 Our Customer usually pays for return shipping.
 Variety of approaches used to return goods: postal service, contract package
delivery service, brick-and-mortar store.
REDUCE ISSUES IN DELIVERY DUE TO:

10. RETAIL PLATFORM STRATEGY
CREATE NEW SUPPLIERS SELL GOODS FROM
OUTSIDE SUPPLIER
STOCK & SHIPPED
MERCHANDISED
•We can directly Sales of
Products to the Customer
Invites Suppliers to expand
the Products ranges as well
as buyers traffics
Store products in Ready to
ship Inventory.
•Design Products availability Supplier can leverage
shopping jinni traffic and
shopper Community
Fulfill Orders Placed on
Shopping jinni
•Sold Via Shopping Jinni
Channel
Best Perform Picking and
Packing
•Edit and Delete of Inventory
according to availability
Provide Inventory Visibility to
Suppliers
•Option to Sell Products as
per the Seasonable goods