SUPPLY CHAIN MANAGEMENT Presented By:

Rani KumariShraddha BhanushaliNehaSaima ZarinAnshika Bajpai

Introduction

Fabindia was founded with the strong belief that there was need for a vehicle to market the vast and diverse craft traditions of India and thereby help fulfill the need to provide and sustain rural employment.

Brief History Founded by John bissell to develop market for hand-woven product and provide rural employment.

Incorporated in 1960 in Delhi to export upholstery fabric.

1974 saw Fabindia’s first retail store in Greater Kailash with ad-hoc merchandising.

1977- Featured contemporary designs to attract consumers and designers.

Garments were introduced in 1980s after John Bissell got Khadi shirt made for himself. John Bissell died in 1998,passing the baton to son William Bissell who became MD in 1999.

William’s vision included expansion, depending less on exports and setting up retail operations .

From 1990 onwards Fabindia emerged as successful retailer in India, with 170 retail outlets within the country and abroad.

Fabindia added its non-textile range in 2000, organic food in 2004, followed by personal care products in 2006 and hand crafted jewellery in 2008.

Fabindia sells a variety of products ranging from textile, garments, stationery, furniture, home accessories, ceramics, organic food, and body care products.

Today Fabindia is considered as one of the most profitable retailers in the country. It earns a net margin of 8%,nearly three times more than the industry average.

It’s supply chain is based on inclusive capitalism co-option of 22,000 artisans and making them into share holders through an elaborate community owned model.

Designers and business experts are directly employed by Fabindia. Few of the designers work with the artisans while others from the product selection committee is to select new artisans and weavers and ensure that the quality standards are met before ordering the products.

FABINDIA SUPPLY CHAIN

Use of Technology in FabIndia’s Supply Chain In 2005, Fabindia decided to transform and strengthen its Supply Chain with the goal to increase monthly revenues from 8 crore per month to 20 crore per month. A major step in this effort was to automate a major portion of the ordering process. As a result two distinct modules were created B2C ModuleThis was nothing but the website www.fabindia.comwhich was transformed to an online shopping website where the entire range of products in Fabindia was contained. This website was linked with domestic and international courier companies who would pick up the ordered item from the warehouse in Delhi and deliver it to the e-customer. The B2C module served domestic ‘click’customers and international customers, who wanted Fabindia products but did not have access to a store.

B2B ModuleThis was the software developed to connect Fabindia stores to the SRC warehouse. This allowed store managers to independently order from each of the SRCs. This would allow for streamlining of order and delivery. The B2B module would also help to project future growth by also acting as a forecasting tool

Key challenges in current supply chain

The main problem for Fabindia is to maintain consistency of products since the suppliers and manufacturing locations are scattered over a large geographical area on a small scale.

As these products are made in rural locations in various locations, it has been difficult to maintain same level of quality due to lack of knowledge on urban customers and also cultural, behavioral differences in suppliers across different locations. In case of organic products, Market in not matured.

The major problem there is fickle delivery and product availability, which does lead to customer dissatisfaction. .

Solutions to the challenges:

Ease of expansion:Bringing the SRCs under its gamut brings with it the advantage of ease of access to company capital and also helps artisans raise money much more easily.

This leads to an easier expansion of capacity.

 Quality Control:controlling delivery times more easily through centralized processes using technology

 standardization and checking defects in the raw material procured and used.

It also helps ensure a benchmark quality which ensures that a problem of non-repeat of purchases does not occur.

channels to International markets

Fabindia has already created its presence in international markets via own retail stores, other retailers and institutional sales.

The complete product range is exported from India. Fabindia does a special collection twice every year to include in exports. To lure potential international customers, they show case these special collection in Indian handicraft and gift collection fair in New Delhi in spring and autumn.

As per the industry reports, biggest overseas market for Fabindia were Canada, Australia, UK, Qatar, and Oman.

Fabindia does not opens its manufacturing unit in overseas due to high cost and uncertainty of demand.

Retail:Internationally Fabindia owns stores in Rome (Italy), Guangzhou (China), Dubai(UAE), Manama (Bahrain) and Doha (Qatar). •The product range consists of garments for men, women, children and infants; garment accessories; home furnishings• Bed, bath, table and kitchen linen, upholstery fabric, curtains, floor coverings; •Furniture, lights, lamps and stationery;•organic foods and body care products.

Wholesale exports:Currently, Fabindia exports products to more than 30 countries, sells to wholesalers and secondary retailers . Primarily, exports include garments and home linens. An office in US wholesales home furnishing collections all across the continent.

Institutional sales:The potential customers are heritage hotels and multinational corporate houses. Fabindia also provides consulting services in customization and interior designing.

 

TRIVIA

•Which international company has 8% share in Fabindia?

•Louis Vuitton  Moet Hennessy (LVMH) acquired an 8% stake in Fabindia.

Fabindia also acquired a 25% stake in UK's women’s wear retailer, which one it is?

EAST .