Case study : Future Supply Chain Solutions - Modern logistics at its best

Future Supply Chain Solutions (FSCS) is one of the seven verticals of Future Group and is the first end-to-end consumer logistics company in India. FSCS was born from the need to have specialised end-to-end (E2E) supply chain solutions for the consumption products. As of today, FSCS services over 2614 retail outlets, spread over 75 cities across 25 distinct retail formats, and manages more than 2.6 million SKUs. The company has a strong and seamless network of global logistic services through its own offices in China, Malaysia and Turkey and network offices in other countries.

Case study

Big Bazaar caters to every need of family and offers value for money proposition for the Indian customers. With the ever increasing array of private labels, it has opened the doors into the world of fashion; Big Bazaar stores have a wide variety of categories like casual wear, ethnic wear, formalwear, party wear and sportswear for men, women and kids. 

Challenges

For Big Bazaar challenges lie in large and scattered vendor base comprised of over 1200 vendors, large SKU base, daily throughput requirement of 0.5 million pieces from RDCs (Regional Distribution Centres), managing seasonality and big events and replenishment to 119 stores across 76 cities.

Solutions provided

FSCS has used advanced network planning and analysis tool to model optimised supply chain network for Big Bazaar retail operations. The optimisation achieved by reducing the number of receiving locations from 16 to 4 and storage locations from 16 to 5.  The warehouses have transitioned from multiple low height sheds to large limited number of consolidated best in class highly mechanised and automated distribution centres. The FSCS distribution centres are equipped with Imported Material Handling Equipments such as Reach Trucks, Stackers, Fork Lifts, Pallet Trucks, Roll Cages, RF Guns, Conveyors, Print & Application and other modern amenities. In newly designed network, inbound deliveries happen at a single merchandise hub (MHUB) nearest to the vendor. These consignments are pre-packed for each and every RDC and are cross-docked to all the RDCs from the receiving MHUB.

FSCS has implemented a best-in-class WMS (Warehouse Management System), integrated with ARS (Automatic Replenishment System) which ensures generation and availability of correct assortment with correct quantity of all major fast moving items on store shelves all the time in distribution centres. FSCS worked very closely and helped Big Bazaar team in rationalising the number of SKUs in the system. Unlike traditional PUSH system (the movement of stock based on sales forecast), ARS works on actual demand considering shelf stock, base stock level and past sales trend. Currently FSCS is designing and implementing Put-to-Light (PTL) solutions at all major distribution centres with conveyor system, automatic weigh-check, and print and application for accurate and efficient replenishment to stores.

Benefits 

FSCS solutions helped in achieving increased fill rate, improved inventory turnover, better visibility, supply chain cost optimisation, higher product availability and wider choice for customer, reduced markdowns and stock-outs and significantly reduced time-to-market by 15 days, leading to freeing of cash flow, lower markdowns and higher bottom-line.

“FSCS Supply Chain solutions has helped us to improve the consistency, accuracy and completeness of our order fill rate. As our business needs keep evolving, we know that having FSCS as our service provider for Big Bazaar will continue delivering best services and best price for the Indian consumer.”

Rakesh Biyani, CEO. Pantaloon Retail

“Key success factor for retail will continue to be the development of a very strong technology enabled back-end supply chain infrastructure to facilitate a speedy ‘Time to Market’ retail strategy, which will help retail in achieving better inventory turns and improved service level in most efficient and cost-effective manner.”

Anshuman Singh, Managing Director & CEO, Future Logistic Solutions Limited