DMart is an Indian retail hypermarket company. The retail brand has a large SCM network and it allows the company to deliver products timely to the retail stores and to the end customers. Today, we’ll discuss the key elements of the supply chain management of DMart.
Some of the main products and services of DMart are as follows;
- Fruits and vegetables
- Sporting and fitness goods
- Health and beauty
- Bed & Bath
- Home Appliances
- Home and Furniture
- Dairy and Frozen
- Daily Essentials
- Grocery and Staples
Key statistical facts and figures about DMart are as follows;
- DMart has a network of 324 stores in 14 states across India by 2023
- The annual revenue of DMart in 2023 was 5.4 billion US dollars
- Out of which, the net income of the retail company was 300 million US dollars
- Approximately 9456 permanent employees are working for the company; 38952 contractual employees
Some of the main subsidiary brands of DMart are as follows;
- Reflect Wholesale and Retail Private Limited
- Nahar Seth and Jogani Developers Private Limited
- Avenue E-commerce Ltd
- Align Retail Traders Pvt Ltd
- Avenue Food Plaza Pvt Ltd
The retail chain brand DMart follows the B2C (business to customer) model; where the company sells products and goods from the manufacturers to the end consumers. DMart offers a great variety of products and goods ranging from men’s and women’s clothes, fruits and vegetables, luggage, footwear, home appliances, daily essentials, staples and grocery items, personal care, and home care products.
The products and goods satisfy customer needs and they significantly impact the demand of customers. However, they remove the possibility of fluctuation due to increased demand and allow you to achieve stability along with many other goals and objectives.
Supply Chain Management of DMart
Some of the main elements of the supply chain management of DMart are as follows;
Limited Cost& Expenses
DMart effectively and efficiently employs its outlet space, instead of decorating its shelves fancifully. The retail company introduces more goods and products for customers to choose from in a very short and limited space. The lower interior cost would help the retail company to decrease operational costs and expenses. While visiting the DMart stores, you would notice that the company has got limited billing counters, and they help the company to decrease the operational cost.
The founders of DMart implemented the store ownership business model in the early stage of the company. It plays a significant role in strengthening the company’s financial position by decreasing the company’s debt or no debt at all. However, it allows the company not to incur any rental costs, open up more retail outlets, and achieve a better cash flow. The retail brand has got ownership of approximately 80% of its stores on credit.
Discounts from Vendors & Suppliers
Usually, retailers pay off their credit to the supplier and vendors within the duration of 3 weeks in the FMCG (fast-moving consumer goods) industry. But DMart pays off its credit and debt within a week. However, it benefits the company in many ways like receiving heavy discounts from the vendors and suppliers. It allows the retail brand to pass on the rewards and discounts to the end consumers.
DMart offers a lot of goods and products in discounted and affordable price ranges and they help the company to increase the overall sales volume. High sales would allow the manufacturers and producers to depend on the brand and order more stock after increasing its demand. It allows the retail brand to offer to receive high discounts from the producers and manufacturers.
DMart follows the slotting fee criteria, it is the price that the company charges from manufacturers and producers for storing their goods and products on the shelves of its outlets. Often, you refer to them as an entry fee. On the other hand, DMart develops appealing marketing strategies and offers discounts to make sure that the sale of its products is as soon as possible.
The B2C model allows the company to procure goods and products in bulk quantity from the manufacturers and producers and sell it directly to the end consumers. The retail company directly deals with suppliers and vendors and removes all the middle parties like wholesalers and distributors. However, they help the company offer discounts and commissions to the end consumers.
The target customers of DMart are middle-class and lower-middle-class people. Often, they buy discounted and low-cost goods and products that have good quality. It allows the company to establish a strong database of loyal customers than many other competitive retailers.
Regional & Local Products
DMart is following the niche-focused strategy by targeting only the specific Indian market with specific Indian local and regional goods and products. The retail brand conducts thorough product research of the business of the local brands and offers customers products that other grocery stores aren’t offering.
Unlike its competitors, DMart has always focused on the growth of its stores and avoided launching shopping malls. It would increase the cost and expenses, and jeopardize the company’s existing sales. The company needs to establish relationships with new suppliers and vendors.
Conclusion: Supply Chain Management of DMart
After an in-depth study of the supply chain management of DMart; we have realized that DMart is a leading Indian retail store brand with a great supply chain network. If you are learning about the SC network of DMart, then you should keep in mind the abovementioned factors and elements.
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