1 AIT Asian Institute of Technology

Second trip during the shelf replenishment process and impact of pack size on retail stores

AuthorBharati, Roshani
Call NumberAIT RSPR no.SM-15-08
Subject(s)Retail trade--Thailand

NoteA research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration in Business Administration - MBA
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-15-08
AbstractIncreasing competition and customer demand have imposed new challenges and complexities to retail industry. Retailers are constantly working to sustain it by increasing their service level while reducing cost at the same time. Most of the cost in retail su pply chain is found to occur within stores and majority of operation cost in store consists of shelf - replenishment cost. The purpose of our research was to study shelf replenishment process, the extent of second trips during it, its causes, impacts and me thods to tackle it. Our study was qualitative and based on case analysis. The questionnaire based in - depth interviews were carried out with related personnel in one of the largest modern retail chain in Thailand with focus on their hypermarket format and also with other three major FMCG companies in the country. We found out that second trip exist in retail stores and impose significant amount of cost in its operation. Retailers can mainly reduce it by optimizing pack size as per the shelf space avail able and also by r educing inventory level in storage. P ack size optimization reduces operation cost for retailers but increases cost for suppliers. However, there are some other benefits like stock - out reduction and better service to customers which are fa vorable to both parties. The retailer and supplier should coordinate and identify or share benefits with each other to establish long - lasting collaboration among them to reduce second trips
Year2015
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-15-08
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Vatcharapol Sukhotu;
Examination Committee(s)Supasith Chonglerttham;Sununta Seingthai;
Scholarship Donor(s)Asian Development Bank – Japan Scholarship Programm;
DegreeResearch report (M. BA.) - Asian Institute of Technology, 2015


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