Supply Chain Analysis Kirana Store Vs.

Hyper Market
Presented By: Jaspreet Singh Rajpal Jitendra Kumar Sushil Kumar

Contents
Introduction A basic Kirana Store Supply Chain of a Kirana Store Advantages Customer POV & Owners POV Disadvantages - Customer POV & Owners POV Hyper Market Supply Chain of a Hyper Market Advantages Customer POV & Owners POV Disadvantages - Customer POV & Owners POV References
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Introduction Supply Chain

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable.
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SUPPLY CHAIN DECISION-MAKING FRAMEWORK

A basic Kirana Store

A convenience store, corner store, or corner shop, is a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, tobacco products, and newspapers.

Such stores may also offer money order and wire transfer services.
They differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores.
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Manufacturer

Supply Chain of a Kirana Store

Big Retailers

Distributor

Wholesaler

Retailer (Feeder Town)

Retailers

Retailer/ Kirana Stores

Rural Retailer/ Kirana Stores

Customer

Customer
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Advantages of Kirana Stores From customer point of view

Time and energy saving Convenience Facilities Good relation overtime Price Bargaining Good for low shelf life good
Need no special planning to visit Does not require to drive long distance Next to door Can be approached any time when required Free home delivery Credit facility Better understanding of customer preference by the Kirana owner One can easy do price bargaining in Kirana store unplanned product and perishable product
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Advantage of Kirana store from owners point of view

Small Start-up capital is required Low cost
Better understanding of customer preference Small capital is required to start Kirana store

Operational cost, maintenance cost and rental cost is low because of low in size Learn the buying pattern of regular customer . Helps in maintain the merchandise of customer choice Require less staff Account keeping other official matter is also not complex Can regulate the merchandise as per demand and season
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Less maintenance Flexible merchandising policy

Disadvantages of Kirana Stores From customer point of view

Not good for planned expensive goods
Product bought in huge quantities products that are expensive and well considered before purchase.

Low range of product

Not large variety of the products available

High price

Supply chain for product is long therefore customer has to pay high price

Less offer and discounts

special discounts and offers as available in supermarket is not available

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Disadvantage of Kirana store from owners point of view

No special facilities by the manufacturer
Less credit period Not regular visit by company representative No special or customized product made especially for a particular Kirana store Merchandise assortment Is low due to low capital High end customer prefer to purchase from supermarket

No customized product Less merchandise assortment Low high end customer

Low profit Lack of brand image

Since capital is low and operation are also low therefore profit is also low

Not backed by brand icon and identity

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Hyper Market
In commerce, a Hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip.
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Manufacturer

Supply Chain of a Hyper Market

Distributor

Big Retailers/ Hyper Market

Retailers

Customers

Customer
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Advantages of Supermarket From customer point of view

Comparative less price
Special offers and discounts facilities
Low price as compared to Kirana store

Always there are some offers and discounts

Nice shopping experience After sales service Centralized buying Customer can buy large variety of product or different range. Best for planned expensive and high value personal product
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Large Varity and options

Exclusivity

Advantage of Supermarket from owners point of view

High customer foot falls Brand image of the store Extended credit facility Special discount and offers from manufacturer Division of losses Purchase directly from manufacturer

Profit margin is high

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Disadvantage of Supermarket from owner point of view

High start - up capital High rental and other indirect expenses High shoplifting
Huge capital investment is required to start a supermarket and security deposit is also very high.

As these are in down town area they have to pay high rental, parking cost and maintenance cost
Supermarket are affected by shrinkage like high shoplifting mostly by their own employees . Complex and high financial and other maintenance is required data of each and every activity is to be maintained
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Complexities

Disadvantages of Supermarket From customer point of view Need special planning for visiting

Queues at checkout point

Fixed price no bargaining Location problem

lack of inter personal relationship with customer

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References
http://en.wikipedia.org/wiki/Supply_chain http://en.wikipedia.org/wiki/Hypermarket http://blogs.timesofindia.indiatimes.com/Tech-a-

tete/resource/Market%2002
http://cce.upes.ac.in/eresources/logistic%20and%20su

pply%20chain/researchreports/nationalseminar.pdf

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