inventory management

1. Pantaloon-Revolutionising
inventory management in Indian
retailing
-Prerna verma
Anjali ranjan
Parth shah
Kishore purohit
Parth sheth

2. • Biyani is redefining the way inventory is managed in
retailing and these revolutionary initiatives are all set
to make his flagship pantaloons a leader in Indian
retail business.
• Big and fast seems to be kishore biyani’s mantra.
• Pantaloons has grown from mere 900$ million in
revenues in 1998 to a 55 store spread in nineteen
cities with expected annual revenues of $ 11 billion,
in the span of a mere seven years.
• During 2004, pantaloons' stock price more than
tripled and crossed $900 in April 2005

3. • To leverage the growth in the retail industry most their
players were furiously setting up malls and expanding
their chain of stores..
• According to biyani such companies were following a
similar format to reach the same customers
• Biyani wanted to do something different and
developed three new highly successful retail formats.
• i.e pantaloons,central and bigbazaar.

4. • Pantaloon- apparel merchandising
• Central-apparel,fashion and entertainment segement
targetted at the rapidly expanding middle class
market.
• Bigbazar-value retailing
• Food bazar- food and grocery retailing store
• By june 2006 biyadni had set up fifty food
bazars,thirthy five big bazars,twenty pantaloons and
six centrals occupying vlose to 3.5 million sq. ft of
retail space

5. Inventory management
• Retailing involves anticipating demand on a particular
day(short term demand) as well as while opening new stores
(long-term demand).
• Currently the inventory is 75 days down from 112 days in
2000-01 and for improving efficinecy he has assigned category
managers for every product group.they are responsible for
managing the lifecycle of a product group and meeting sales
target.

6. • Their biggest efficiency is in buying cost,they buy huge quantities
and pay less,they are also able to brand/label in a store.
• Biyani is now targetting youth by junking old positioning : India’s
family store.
• Biyani feel studying at communities-techies,metro sexuals,etc are
must.
• Pantaloons=Affordable fashion
• New punch line= “fashion from pantaloons”
• Pantaloons will be equivalent to zara.

7. • Zara can launch new lines in less than 21 days, because they
have their own factories.
• Faster manufacturing will let the company stock less inventory
while reducing the quantity of stocks to be sold at a discount.
Simultaneously sales will rise due to faster arrival of fresh stocks.
Biyani has brought the time lag down to 90 to 40 days.
• Big bazar focuses on fashion with an orientation towards large
volumes.it will sell commoditized fashion.
• Pantaloons will carry no stock. The inventory lies with the
manufacturer and replenished just in time.
• Pantaloons is trying to make in-house products.
• Entire stock for grocery is replenished thirty times and garment
stocks are replenished six times annually.