1. A
Project Report
On
Comparative study of Supply Chain Management
Of
Levis Outlet and Local Store
Submitted to:- Submitted by:-
Mr. Ajeta Bhatia Garima jain
Meenakshi Gupta
Neha Ajmera
Sunil Jangid
1

2. Index
S. No. Particulars Page No.
1 Profile of: 3
Levis Outlet
Local Store
2 Supply Chain Operation of; 4
Levis Outlet
Local Store
3 Resources Used 5
4 Comparison Related Questions 6
5 Comparison Between Levis and Local 7
Store
6 Similarities 8
7 Analysis of Study 9
8 Recommendation 10
9 Learning from the Project 10
2

3. Garments Industry:
Introduction about Levis Strauss & Co.
Levi Strauss & Co. (LS&CO) is a privately held American clothing company, known for
denim jeans.
The core Levi's was founded in 1853 in San Francisco, specializing in riveted denim jeans and
different lines of casual and street fashion and it is a worldwide corporation organized into three
geographic divisions/headquarters:
1. Levi Strauss Americas (LSA), based in the San Francisco headquarters;
2. Levi Strauss Europe, Middle East and Africa (LSEMA), based in Brussels; and
3. Asia Pacific Division (APD), based in Singapore.
Levi Strauss & Co. is a private global business, making and marketing our clothing in the
Americas, Europe and the Asia Pacific region.
Founder: Levi Strauss
Area Served: Worldwide
No. Of Locations: 470 company-operated stores
Introduction of Local retailer shop:
The local retail store (Shri Shayam Garments) exist in “kanta mention, champawat market,
haldiyo ka rasta, Johri bazaar Jaipur. It is mainly in the business of zeanses, shirts, t-shirts.
Founder: Ravi Agarwal
Area Served: Jaipue City
No. Of Locations: only 1 store
3

4. Supply Chain Management of Levis Outlet:
Retailers follow 1 level distribution channels to sell their product, such as:
Manufacturer Retailer Customer
Supply Chain Management of Local Store:
Local retailer follows two type of supply chain, such as:
a. Manufacturer Retailer Customer
b. Manufacturer Distributor Retailer
Customer
4

5. Resources Involved:
1. Inventory Positioning - It refers to the selective location of various items in the product
line in regional or field warehouses. Inventory positioning has a bearing on facility
location decision, and therefore, must be considered in the logistics strategy.
2. Future Demand – The activity of estimating the quantity of a product or service that
consumers will purchase. Demand forecasting involves techniques including both
informal methods such as educated guesses and quantitative methods such as the use of
historical sales data or current data from test markets. Demand forecasting may be used
in making pricing decisions, in assessing future capacity requirements, or in making
decisions on whether to enter a new market. Based on expected futuristic values.
3. Logistics Coordination – Multi facilities are provided in supply chain process.
Logistics is the management of the flow of goods between the point of origin and the
point of destination in order to meet the requirements of customers or corporations.
Logistics involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging, and often security.
4. Global Optimizations – It implies relation between cost and lead time. Global supply
chains pose challenges regarding both quantity and value Supply and value chain trends.
5. Resources Allocation – It consist to maximize the profit and minimize the cost.
6. Transportation Cost – Calculate on distance basis.
7. Planning and control – It involve network planning and inventory control.
8. Information flow facility structure – It convey to top-to-bottom as well as bottom-to-
top.
These trends have many benefits for manufacturers because they make possible larger lot
sizes, lower taxes, and better environments (culture, infrastructure, special tax zones,
sophisticated OEM) for their products. Meanwhile, on top of the problems recognized in
supply chain management, there will be many more challenges when the scope of supply
chains is global. This is because with a supply chain of a larger scope, the lead time is
much longer. Furthermore, there are more issues involved such as multi-currencies,
different policies and different laws.
5

6. Comparison related Questions: (Store-keepers’ Point of view)
1. Where are you purchased the product?
2. Where do you sell your products?
3. How much you earn turnover(in a year) or total sales (in a month)
4. How many distribution centres are?
5. How many suppliers are?
6. How many warehouses do you have? Or you possess any warehouse?
7. How you measure the quality of the product?
8. How many intermediaries (agents) are in your business?
9. Do you export or import the product? And where?
10. Directly deal with the customers or wholesalers or sell the product directly to the
customer or there is any retailer to whom you sell the product?
11. Lead time of the product?
12. Order time and the seasonal growth of the product (specific demand of the product during
season)?
6

7. Comparison between Retail store and Local store:
Basis of Difference Levis’ Store’s supply Chain Local Store’s Supply Chain
Lead Time 4-5 days 1 day
Turnover $1.57 million (overall) 1– 1.5 lakh
Demand Forecasting Survey Based Depends on product selling
Highly Demanded Denim Jeans
Product
Low Demanded Product Accessories Shirts
Supply Chain 1 level 1 level & 2 level
Export Sri-Lanka, China No
Transportation Cost No Bear by Retailer
Warehouse Jhotwara Depending on future demand
Information Flow R S.O. M A) R M
R = Retailer B) R A M
S.O. = Senior Officer
M = Manufacturer
Minimum Charges Stat with Rs. 2000 Start with Rs. 300
Supplier Directly from the Bombay, Kanpur, delhi
manufacturer
No. Of supplier 1 4
Quantity Decided on demand Decided on selling of the
forecasting basis product
Transportation mode Trucks Tempo
used by the retailer
Order quantity Bulk Small
Order frequency Regular in 4-5 days When there is demand they
order the product
Inventory Management Bills No records maintained
Packaging Container Small packets
Contact Sagar Sharma (0141- Ravi Agarwal (9001000366)
5100783)
7

8. Similarities in both type of store:
1. No Home Delivery: There is not any kind of home delivery system, neither in retail
store nor in local store
2. Followed Push Strategy: Both the stores follow the push strategy to attract customer
by modified product, innovative product or diversification strategy.
3. Nature of Business: Business-to-Business
4. No Import Requirement: both of the stores are not involve in importing of products.
8

9. Analysis of Comparison:
1. The study reveals that the retailer purchases products from both manufacturer, and
agents. If the retailer purchases the product from agents then agent charges the
commission for his services, and profit margin of the retailer may goes down. But in case
of company owned (branded showrooms) outlet “levies” they have their own
manufacturing houses, so need to pay to the agents.
2. The retailers have the warehouse near to their shop, so whenever they need the product
they take it from there and sell to the customer. On the other hand Levis has its
warehouse in Jhotwara, Jaipur. Which is far more than the company outlet in GAURV
TOWER, so when they need product they have to bear the transportation charges?
3. The retailers estimate the demand on the basis of selling of the product but Levis use
survey technique to know the people interest, fashion, and their needs.
4. Retailer has the manufacturer not very far from their shop, so the lead time is only
maximum 1 day. But in case of Levis the manufacturer is in Bangalore, and lead time is 4
– 5 days, so customers have to wait for their particular choice of product.
So customer comes to the branded showroom to purchase products, because it becomes a
status symbol. But in India there are people who don’t want to spend more, so they go to the
small retailers to purchase. Only the people who are brand conscious are purchasing the
things from these company outlets.
9

10. Recommendations:
 Levis should have warehouse near to the company outlet, so when there is any need,
they can bring the product, and transportation cost also reduced.
 Local store should provide best quality products
 levis store should reduce the lead time to increase the sales
Learning from the Project:
 This project helps in understanding of components of supply chain management
 Helps to understand the operation included in supply chain management
 This project also helps to understand about the sequencing of activities and product and
information flow.
 The local retail store mainly work on consumer trust and the Levis make customer
satisfied through their services. So there is difference in their strategies. If local retailer
provide good services to the customer with better quality their profit and sales will
increase
10