DECATHLON SOURCING PROJECT:

To Identify The Logistics Potential In Accordance

To The Needs Of Decathlon’s Processes

JANUARY – APRIL 2016

Submitted by:
Guru Sharan Sahu
Batch: 2014-2016

DEPARTMENT OF FASHION MANAGEMENT

STUDIES
NATIONAL INSTITUTE OF FASHION
TECHNOLOGY
MUMBAI
 Acknowledgements

I express my gratitude to college for arranging this summer internship with

Decathlon Sports India. I am highly thankful to Mrs. Sonali for her guidance
and constant supervision as well as for providing necessary information
regarding the project & also for her support in completing the project. I
would like to express my gratitude and thanks towards my industry mentor
Mrs. Era Chopra and Mr. Samuel Goni for giving me such attention and
time, and for providing valuable insights leading to the successful
completion of my project.

DATE: 11-05-2016

PLACE: MUMBAI

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 ANNEXURE - VI
(External Jury Examination Proceedings)

NIFT: MUMBAI

Proceedings of the MFM GRP External Jury Examination of Mr. Guru Sharan
Sahu held at 9:30 am/pm on Thursday in NIFT, Mumbai.

The GRP Internal Jury Examination of Mr. Guru Sharan Sahu on her MFM
GRP report entitled “To Identify The Logistics Potential In Accordance To
The Needs of Decathlon’s Process” was conducted in NIFT Mumbai at 9:30
am/pm on Monday.

The following members of the External Jury were present:

1. <Name, Designation & Address>

2. <Name, Designation & Address>

3. <Name, Designation & Address>

4. <Name, Designation & Address>

3
 RECOMMENDATION

The Research scholar Mr. Guru Sharan Sahu presented the salient features
of his GRP work. This was followed by questions from the External Jury
members. The questions raised by the Jury Examiners were also put to the
scholar. The scholar answered the questions to the full satisfaction of the
jury members.

Based on the scholar’s research work, his/her presentation and also the
clarifications and answers by the scholar to the questions, the board
recommends that Mr./Ms.___________________________, be awarded
the Master Degree in "Master of Fashion Management (MFM)"

1. (Name of the Jury Member with Signature)

2. (Name of the Jury Member with Signature)

3. (Name of the Jury Member with Signature)

4. (Name of the Jury Member with Signature)

4
5
Contents
CHAPTER 1....................................................................................................................................... 7
LET’S START WITH GLOBAL SPORTS INDUSTRY AND IT’S RETAIL INDUSTRY:.................................. 7
Exports - A Momentous Growth.............................................................................................. 8
CHAPTER 2....................................................................................................................................... 9
COMPANY HISTORY......................................................................................................................... 9
Expansion: ............................................................................................................................. 10
Conclusion & Henry Porter’s Five Forces Model:.................................................................. 11
Decathlon Industry Attractiveness and Position: .................................................................. 12
COMPANY PROFILE:....................................................................................................................... 13
OPERATIONS:................................................................................................................................. 13
WHAT IS SOURCING....................................................................................................................... 14
Strategic Sourcing Methodology ........................................................................................... 14
SOURCING METHODOLOGY: ......................................................................................................... 15
SOURCING STEPS........................................................................................................................... 24
CHAPTER 3..................................................................................................................................... 25
LOGISTICS- INDIA........................................................................................................................... 25
DECATHLON INDIA LOGISTICS ............................................................................................... 27
CHAPTER 4..................................................................................................................................... 28
SAP (Systems, Applications, Products) .......................................................................................... 28
SAP EWM FUNCTIONS................................................................................................................... 35
PROJECT UNDERTAKEN ................................................................................................................. 36
Manufacturing Sector............................................................................................................ 42
Service Sector ........................................................................................................................ 43
FINDINGS ....................................................................................................................................... 44
CAC and CAR SWOT ANALYSIS............................................................................................... 44
....................................................................................................................................................... 46
LEARNING OUTCOMES: ................................................................................................................. 48
Conclusion: .................................................................................................................................... 49
Executive Summary ...........................................................................Error! Bookmark not defined.
WEBLIOGRAPHY: ........................................................................................................................... 52

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CHAPTER 1
LET’S START WITH GLOBAL SPORTS INDUSTRY AND IT’S
RETAIL INDUSTRY:

Estimated value of Sports Industry is about $ 1.5 Trillion (Plunkett Research USA) at
2014.
The Global Retail Sporting goods market holds substantial opportunities for sporting
goods suppliers due to strong product demand in the three market segments: athletic
apparel, athletic footwear, and equipment. Asia and Rest of World represent good growth
market for retail sporting goods industry over the forecast period. According to Lucintel,
the market is forecast to reach an estimated $266 billion in 2017 with a CAGR of 4%
over the next six years (2012–2017).

The sporting goods industry comprises establishments primarily engaged in the

manufacturing and retailing of sporting goods, such as camping equipment, exercise and
fitness equipment, athletic uniforms, specialty sports footwear, apparel, and accessories.
As the study indicates, the global retail sporting goods industry is highly fragmented.
North America currently dominates this market. Some of the major players in this market
are Nike, Adidas, and Dick’s Sporting Goods. A combination of factors such as
demographics and consumer spending impacts market dynamics significantly.

INDIAN MARKET SCENARIO: (by IBEF)

The words 'sports goods' have become synonymous with the passion that India has for
sports. The sports goods industry in India is nearly a century old and has flourished due
to the skills of its workforce. Being labour-intensive in nature, the industry provides
employment to more than 500,000 people. The nucleus of this industry in India is in and
around the states of Punjab and Uttar Pradesh.
∑ Jalandhar in the state of Punjab and Meerut in the state of Uttar Pradesh account
for nearly 75 per cent of total production.
∑ Together, the two towns house more than 3,000 manufacturing units and 130
exporters.

7
 ∑ About 60 per cent of the sports goods manufactured in Jalandhar consist of
different kinds of inflatable balls.
∑ The Indian sports goods industry also has a presence in the cities of Mumbai,
Kolkata and Chennai, albeit at a lower scale.

Exports - A Momentous Growth

India's share of the global sports goods export market is expected to grow manifold, with
the country establishing the credibility of its goods in the international market. Indian
sporting goods are well known around the world and have made a mark in the global
sports goods market. The industry exports nearly 60 per cent of its total output to sports-
loving people the world over.
∑ The sports goods market in India was valued at US$ 2 billion in 2012-13. The
market is growing as 35-40 per cent a year and is expected to reach US$ 3.6
billion by 2015. The growth is expected on account of increasing awareness
about health and fitness in the country.
∑ India exported sports goods worth around US$ 256 million in 2013-14 as
compared to US$ 214.95 million in 2012-13 and registering a growth of about
19 per cent.
∑ The major items to be exported during 2013-14 includes inflatable balls, cricket
bats general exercise equipments, sports nets and protective equipment for cricket.

Sports Goods Export Promotion Council

The Sports Goods Export Promotion Council (SGEPC) promotes the export of sports
goods and toys from India. SGEPC represents the leading 200 manufacturers and
exporters of sports goods and toys in India.

8
CHAPTER 2

COMPANY HISTORY

History and the need of branding:

The company history is a classic case of adaptation to market changes and incorporation
of strategies according to the “pull” of the industry. At a time in 1976 when it was
incorporated branding of products was not a very strong determinant of value
addition. This was for the fact that only a few names were present in the sports retailing
arena competing with almost similar products but due to the contemporary push
strategies, huge instauration (gap between demand and supply) and low demand creation
in the market neither was innovation required and nor was branding.
In 10 years with new company’s coming into the market creating a need to have
differentiated products Decathlon went into the mode of co-creating its products
best suited to its customer base. So it started off as a primarily trading brand working in
Lille,France. Finally 10 years later in 1996 it went a step further it creating its own
“Passion brands” catering to different sports and adventure universes (such as team
sports, racket sports, hiking etc. ) and creating new “Umbrella brands” (Btwin, Quechua,
Domyos etc.). The brands were further improvised with co-branding through very strong
component brands such as “Shimano” for its Btwin. All strategies incorporated were
not successful in the long run and thus were eliminated after assessment. A few Co-
brandings did not come up with best results and after scrutiny they were subsequently
dropped because it did not seem to create any significant value addition to the products.
The testing of each product is done separately by the specialized teams are hence the
headquarters of each category is located in places where the surroundings enable the
product testing. (Aqua products in a coastal location, hiking products in a
mountaineering location etc.).

9
Company Category:

Decathlon in a nutshell is an innovative cost leader the industry of sports retailing.

The company works with a lean supply chain model for efficient and cost efficient
production which is its primary motive. Now for a cost leader it is immensely difficult to
be innovative because innovation costs(R & D, IP etc) it shoots up the cost of end
products and thus any company tends to be “Stuck in the middle” of not being either a
cost leader or an innovator. Decathlon business model compensates for the innovation
expenses through cutting down costs in marketing and advertisement departments by
primarily promoting its brands through “word of mouth” promotion through its
stakeholders at large which might be the least aggressive promotion strategy in the short
run in the contemporary market scenario, however deemed to be the most impactful in
the long run creating a huge portfolio of brand ambassadors among its stakeholders.

Competitive Advantage:
The products were added unique value through it’s in store experience, CRM strategies,
value for money and never before heard after sales service policies in the sports retail
which gave replacement guarantee (2 years) on its products.

Expansion:

The company started expanding once it felt it product mix was up to the global standards
and initially it expanded stores in France and then expanded throughout Europe through
various expanding its retail catchment areas. The company turned its attention to both
east and west in USA and China in the 2000s. China was a mammoth success while
USA did not make such an experience due to demographic and strategic mismatches.
It came to India in 2009 after FDI relaxation and viewing the market potential the
company went into a vigorous expansion mode almost similar to China. A very unique
promotion policy that the firm incorporates is by respecting a nation’s sporting
sentiments and inclination. In China there is a huge number of people into racket sports

10
(Artengo) and Basketball (Kipsta) hence the company has a huge infrastructure in a
prime location providing 9 basketball courts, table tennis tables etc. In India they created
an umbrella brand for cricket enthusiasts. In India, it has promoted the cricket sports
through it’s brand FLX (engineered in India for India).
Currently the company is generating revenue of close to 10 billion Euros through it 975
retail outlets worldwide.

Conclusion & Henry Porter’s Five Forces Model:

Being a cost leader in an industry which highly depends on technology and innovation is
not easy. Hence the prime challenge is to identify the market pull as fast as possible and
procure the products of the best quality at the best prices. For that identification of
capable suppliers who are ready to collaborate and/or manufacturing infrastructure is
required where the suppliers bargaining power becomes too high. And subsequent cost
reduction through removal of vestigial operations can be answer to the market penetration
strategy ensued by Decathlon. The sports retailing industry is growing by leaps and
bounds in the domestic market by around 35-40% CAGR. The industry attractiveness and
the firm’s current market position can be elucidated through Henry Porter’s five forces
model as follows:

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Decathlon Industry Attractiveness and Position:

Henry Porter’s High Moderate Low

Five Forces

Threat from Industry X

competitors
Buyer bargaining X
power
Supplier bargaining X
power
Threat from new X
entrants

Threat from X
substitutes

Main Competitors: Nike, Adidas, Dicks Sporting Goods, Sports Direct, Columbia
Sports

12
 COMPANY PROFILE
Name: Decathlon
Industry: Sports retail
Employees: 68,000
Turnover: 10 billion Euros (2014-15)
Number of stores: 975
Retail countries: 22
Production countries: 23
Brands: As below

OPERATIONS
1. DESIGN
2. MANUFACTURING (OUTSOURCED)
3. RETAIL

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WHAT IS SOURCING

Strategic sourcing is a broad, more transformational process, performed at a higher

organizational level. Strategic sourcing takes the procurement process further, examining
the whole supply network, its linkages, and how they impact procurement and purchasing
decisions. The focus is more on the Tier 1 supply network, value creation, risk, and
uncertainty in the supply chain and the overall responsiveness and resilience of the
supply chain.

∑ Managing sourcing and procurement processes

∑ Strategic sourcing and delivering customer value
∑ The size of the organization spend and financial significance
∑ Understanding buyer-supplier relationships
∑ Global procurement competitiveness

Strategic Sourcing Methodology

As noted previously, strategic sourcing is a broader and more comprehensive process

than procurement. We consider here a seven-step methodology that details the strategic
sourcing process. Overall, the process begins with the development of the appropriate
strategy, which provides direction for all ongoing organizational efforts. The appropriate
strategy is influenced by the value discipline of the organization. As highlighted next,
Michael Porter has persuasively argued that there are three generic competitive strategies
for positioning the organization in the marketplace:
∑ Overall cost leadership— Requires efficient-scale facilities, tight cost and
overhead control, standardized customer offerings, reduced network costs, and a
low-cost operational model.
∑ Differentiation— Requires creating products and services that are unique and
build customer loyalty.
∑ Focus—requires serving a particular target segment very well by addressing its
specific needs based on a clear understanding of the marketplace.

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SOURCING METHODOLOGY:

Step 1: Strategic Sourcing Team Meeting (Annual)

The first step in the process is the kickoff meeting for the upcoming calendar or fiscal
spending year. Essential to the success of this meeting is the establishment of the
strategic sourcing committee, which should include, at a minimum, the chief operating
officer (COO), chief financial officer (CFO), and if used, the chief procurement officer
(CPO). We also recommend the inclusion of other key stakeholders: design, R&D,
operations management at a very high level, marketing management (to ensure the needs
of the customer segments have a voice), manufacturing team members, quality assurance
representatives, and transportation team members (assuming the organization has its own
private fleet).

The agenda of this first step should cover the scope and scale of the products and services
that are purchased, an understanding of the requirements and specifications for needed
products and services, plus any new sourcing opportunities. Among the procurement
activities discussed in this first step are the three Ds as well as the components of the
triple bottom line (TBL):
∑ Define the current needs—A procurement transaction is usually initiated in
response to either a new or existing need with a recommended supplier. In the
case of unacceptable on-time fulfillment or quality issues, there may be a request
to change suppliers. In either case, once the need is identified, the procurement
process can begin. The need can be identified by any of a variety of functional
areas in the organization.

∑ Define and evaluate internal requirements—After the products and services

have been identified, some type of measurable specification or set of criteria must
represent each requirement.

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 ∑ Define whether to “make or buy” Before outside suppliers are solicited, the
purchasing firm must decide whether it will make or buy the product or service.
Today, in an effort to focus on the core competencies of the organization, more
and more noncritical components and services are being outsourced. Before being
made, such decisions require a complete understanding of the resources,
capabilities, and processes available outside the firm.

∑ Sustainability and the triple bottom line - Sustainability planning and a review
of where the organization is with its plan should be on the meeting agenda.
Strategic sourcing describes how an organization intends to create and sustain
value for its current shareholders. By adding sustainability to the agenda, we add
the requirements to meet these current needs without compromising the ability of
future generations to meet their own needs. The strategic sourcing team must
consider the mandates related to the ongoing economic, employee, and
environmental viability of the organization. Economically, the company must be
profitable. Employee job security, positive working conditions, and development
opportunities are essential. The need for nonpolluting and non-resource-depleting
products and processes presents new challenges to supply managers as well as
operations
The first step should include a strategic spend analysis. A frequently used definition of
strategic spend is the dollar value of the goods and services critical to the mission of the
organization. This analysis supports an understanding of the amount to be spent by
category, supplier type, and internal user and will examine the current sourcing
approaches being used by the purchasing team (e.g., annual rebate program versus
traditional market-based pricing with no rebate allowances). Specific supplier
recommendations made by the CFO and/or CPO on key product categories should be
considered part of the scope for the strategic sourcing team meeting. The procurement
team must honor these recommendations: They are contractual agreements made at the
executive level and typically carry with them a financial remuneration provision based on
some measurable criteria, such as volume or day’s sales outstanding.

16
More often than not, the organization is unable to develop a comprehensive spend
analysis due to a lack of centralized spend data. With the appropriate information, this
assessment facilitates recommendations for improvements in the overall sourcing process
and identifies any potential associated financial benefits that could be contractually
obtained.

Step 2: Assessing the Supply Market

This second step in the strategic sourcing process involves making sure that all the
potential sources of supply are identified and viable mechanisms are in place for
comparing their capabilities to those of other potential suppliers. As the supply market is
being assessed, special attention should be paid to the following issues:
∑ A comprehensive assessment of the supply market will include a thorough market
analysis. The supply market might be a highly competitive market with many
suppliers, an oligopolistic market with a few suppliers, or a monopolistic market
with a single entity supplier. With a clear understanding of the market,
procurement professionals will know the number of suppliers in the market, the
bargaining power of the buyer and supplier, and which method of purchasing
might be most effective.
∑ Whether or not they are currently being used, it is important to identify all
possible suppliers that might be able to satisfy the user’s needs. With all of
today’s foreign services, this can be a daunting task, particularly determining their
capacity, process technology, quality, flexibility, and market effectiveness.
∑ The supplier assessment must include a prescreening of all possible suppliers.
When developing and evaluating user requirements, it is important to distinguish
between “needs” (demands) and “wants” (desires). The needs for a product or
service are those dimensions that are critical to the user; wants are those that are
not as critical and are therefore negotiable. Prescreening reduces the pool of
possible suppliers to those that satisfy the user’s needs. In our example of steel
reinforcement bars, several suppliers will have them in stock in standard lengths
and available for shipment within a 24-hour window. A “want” might be having
them pre-cut to specific lengths and bent to specific dimensions for a contracted

17
 job. This “want” may require a series of tests by internal engineering staff to see
whether the supplier is capable of meeting the desired specifications.
This second step should recognize the need to simplify purchasing complexity and,
whenever possible, reduce the number of products or services needed. Simplification and
standardization are the criteria for improving this step. Also, attention should be given to
an understanding of pricing points and opportunities for consolidation of the spend.
Doing so creates greater leverage for the user and enhances supplier relationships. The
enhancement of the supplier relationship is discussed in more detail in Chapter 5,
“Understanding Buyer-Supplier Relationships.”

Step 3: Developing the Sourcing Strategy

It is important to fully develop a sourcing strategy that defines the dimensions of the
process and the steps to be followed. Due diligence is the cornerstone for developing a
sourcing strategy. A key aspect of due diligence is the supplier portfolio screening
process, which includes initial supplier research and screening, development of a request
for information (RFI) and a request for proposal (RFP), site visits and follow-up
discussions, and supplier selection. Although the strategic sourcing committee may not
play an overt role here, it will play a key part in the ultimate selection of Tier 1 suppliers.
∑ The purpose of the RFI is to establish whether or not a supplier has the resources,
capabilities, and processes to be considered for a more extensive analysis. It will
request information on the company’s background, financial stability, the
locations of its manufacturing and distribution facilities’ locations, markets
served, its ability to provide R&D support to users, its quality systems, and
cultural insight. No pricing information is requested in the RFI.
∑ The purpose of the RFP is to gather information relevant to the user company’s
needs and wants. Here the potential suppliers are asked for specifics on how they
would respond to the request. The potential suppliers are requested to detail their
manufacturing and distribution facility locations, lead times, capabilities, and
grade and quantity pricing associated with fulfilling the required specifications.
The sourcing strategy should also include the quantitative and qualitative criteria for
supplier selection to be used by the strategic sourcing committee. The selection criteria in

18
Step 3 should directly relate to the issues addressed in Step 2. An outline of typical
supplier selection criteria is shown in Table 1.1.An alternative evaluation matrix
(multiple weighted criteria) for final assessment in a product category is illustrated in
Tables 2.1 and 2.2 in Chapter 2, “Managing Sourcing and Procurement Processes,”
making use of Importance Scores and Achievement Scores to assess the suppliers’
capabilities for a particular product group.

Table 1.1 Supplier Selection Criteria

Area of Focus

MANAGEMENT ATTITUDE

SOCIAL COMPLIANCE

QUALITY SYSTEM

PRODUCT QUALITY

PRODUCT MASTERY

BASIC LEAN CULTURE

PRODUCT PRICE COMPETITIVENESS

CAPACITY AVAILABLE

FINANCIAL HEALTH

EXPANSION PLANS

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Step 4: Executing the Sourcing Strategy
This step essentially begins with an evaluation of the suppliers that successfully passed
the RFI and RFP screening process and concludes with the awarding of a contract. The
pool of suppliers that have passed the screening criteria are deemed acceptable to provide
the user’s needs and wants. It is now possible, based on the prescreening in Step 2 and
the final assessment of qualified suppliers in Step 3, to determine which supplier or
suppliers can best meet the user’s negotiated requirements. If the item or items are fairly
standard and there is a sufficient number of potential suppliers, this activity may be
accomplished through the use of competitive bidding. Without these basic conditions, a
more elaborate evaluation may be necessary, as in our earlier example using an
engineered specification of ASTM A615 Grade 60 for deformed steel bars.
The selection of the ultimate supplier is key! The choice of suppliers determines the
relationship that will exist between the organization and the supplying firms and the
ultimate levels of collaboration, trust, intimacy, procedural justice, and cooperative
norms. The levels of these relationship components are discussed in Chapter 5. They
determine whether the relationship will be a routine partnership or a strategic alliance
built over many years.

Step 5: Implementation and Integration of the Contractual Agreement

The key components of Step 5 are the finalization of the contractual agreement, planning
the transition process (particularly if switching suppliers), and the receipt of the specified
products or services. With the receipt of the order under a new contract, the procurement
team begins the generation of performance data necessary to establish a vendor
evaluation system. Another element of Step 5 is the implementation of a benchmarking
system aimed at determining the savings generated by the contracted vender.
The proper receipt of goods and services is of vital importance. Many smaller and single-
site organizations have centralized receiving in one department. If just-in-time (JIT)
inventory management systems have been implemented, materials from Tier 1 suppliers
or supplier partners bypass receiving (and inspection, if this function is in place) and are
delivered directly into production.

20
The prime purposes of receiving are as follows:
1. To confirm that the order placed has actually arrived.
2. To check the condition of the shipment.
3. To ensure the quantity ordered has been received.
4. To forward the shipment to its proper destination.
5. To ensure the proper documentation of the shipment is included.
Shortages may occur because material has been lost in transit, short-shipped and not
reported by the supplier, tampered with in transit, or damaged in transit. Physical counts
can be forced by blocking receiving from having access to the quantity ordered. If
accurate amounts are entered into the system, the order is closed out, inventory records
updated, and the invoice cleared for accounts payable to authorize payment based on the
terms and conditions negotiated.

Step 6: Supplier Performance Measurement and Improvement

A critical and key step in the strategic sourcing process is the measurement and
programmed improvement process for supplier performance. This involves the ability to
provide “time, quantity, and place utility” in the form of goods and services for the
benefit of the consuming organization. Because there is no value in the product or service
until it is in the hands of the customer, the distribution and transportation functions of the
supplier’s business are all about making the product or service available. Availability is
in itself a complex function, impacted upon by a number of factors. These factors might
include delivery frequency and reliability, stock levels and order cycle, and lead time
variability. Ultimate customer service is determined by the interaction of all those factors
that affect the process of making products and services available to the consumer.
In practice, companies have varying views of supplier performance. LaLonde and
Zinszer6 in a study of supplier service practices and measurements suggest that service
effectiveness can be reviewed under three headings:
∑ Pre-transaction elements
∑ Transaction elements
∑ Post-transaction elements

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A more in-depth review of LaLonde and Zinszer’s work is provided in Chapter 3,
“Strategic Sourcing and Delivering Customer Value.”

Step 7: Maintenance of Records and Relationships

The final step is to update records, including supplier performance scorecards developed
in Step 6. Electronic files of the order-related documents are stored. Legal requirements,
accounting standards, company policy, and judgment dictate which records are to be kept
and for how long. For example, a purchase order is evidence of a contract. It may be
retained much longer (normally seven years) than the requisition, which is an internal
memorandum. The basic records to be maintained, either manually or electronically, are
as follows:
∑ PO log, which identifies all POs by number and indicates the open or closed
status of each
∑ PO file, containing a copy of all POs, filed numerically
∑ Commodity file, showing all purchases of each major commodity or item
reflecting date, supplier, quantity, price, and PO number
∑ Supplier history file, showing all purchases placed with major (Tier 1) suppliers
∑ Outstanding contracts against which orders are placed, as required (proof of
meeting the required volume stipulated in the contract)
∑ A commodity classification of items purchased
∑ A database of suppliers that have been used and are currently being used
∑ Savings generated by contracted supplier, by product category, by program type
(JIT program, inventory turns improvement, or additional payment terms and
conditions)
Additional records files may include:
∑ Labor contracts, giving the status of union contracts (particularly contract
expiration dates) and the union involved.
∑ Tool and die records showing tooling purchased, date of purchase (put into
service), useful life (or production quantity), usage history, price paid, ownership,
and plant location (which facility site is using them). These purchases can be
transaction-specific investments (TSIs) by the organization and are considered

22
 proprietary for a specific customer. The costs of the tooling are typically
amortized over the useful life and charged back to the customer.
∑ Minority and small business purchases, showing dollar purchases from each. Any
special contractual arrangements are noted.
∑ Bid-award history, showing which suppliers were ask to bid, amounts bid, number
of no bids, and successful bidder, by major product category. This record file
would include any reverse-auctions conducted and which outside firm conducted
them.
∑ Rebate programs and awards earned by the organization and the particulars used
to calculate the rebate and when it was collected. Also, any gain sharing programs
the organization was involved in, the supplier involved, the payout, and the
specific details of the program.

23
 SOURCING STEPS

Need for Sourcing/ Panel review [IB, PL, and PTM (DPP)]
•Better price
•Capacity
•Better social audit + Quality situation
•Removing monopoly
•New products/ developments

SOURCING ANNUAL TEAM MEETING

NEED IDENTIFICATION (FROM PROCUREMENT)

PREPARATION OF SOURCING STRATEGY

IMPLEMETATION OF SOURCING STRATEGY

CONTRACTUAL AGREEMENTS

SUPPLIER REVIEW AND CONTINUOUS IMPROVEMENT

MAINTENANCE OF RECORDS AND RELATIONSHIPS

24
CHAPTER 3
LOGISTICS- INDIA
Indian logistics market is expected to grow at a CAGR of 12.17% by 2020 driven by the
growth in the manufacturing, retail, FMCG and e-commerce sectors.

India spends around 14.4% of its GDP on logistics and transportation as compared to less
than 8% spent by the other developing countries.

3PL logistics market in India is expected to be worth US$ 301.89 billion by 2020.

NOVONOUS estimates that the warehouse market in India is expected to grow at a

CAGR of 10% whereas freight forwarding market is expected to grow at a CAGR of
12% till 2020.

This growth rate is based on the expectation that the new government will soon
implement the GST regime and the logistics companies can optimize their
operations to reduce cost and increase their margins. With the implementation of
GST, the logistics companies, which are currently forced to set up many small
warehouses across multiple cities can set up just a few, big warehouses region
wise and can follow the hub-and-spoke model for freight movement from the
warehouses to the different manufacturing plants, wholesale outlets, retail outlets
and the various POS. This growth is also backed by the boom in the e-commerce
sector and expansionary policies of the FMCG firms. This has increased the
service geography of the logistics firms but they also have to meet the demands of
quick delivery and tight service level agreements.

The Indian logistics industry spends around 14% of the GDP on different types of
cost incurred in logistics operation. The amount of cost incurred is very high in
comparison to the logistics cost incurred by different nations. The logistics firms
are moving from a traditional setup to the integration of IT and technology to their

25
 operations to reduce the costs incurred as well as to meet the service demands.
The industry as a whole has moved from being just service provider to the positon
where they provide end to end supply chain solutions to their customers.

The proposed new goods and services tax (GST) regime and e-commerce will alter the
landscape in warehousing, supply chain management and third party logistics business.
GST implementation will be a game-changing event for businesses and particularly for
organised logistics players.

Logistics requirement for e-commerce will grow as exponentially as e-commerce.

Indian logistics sector is estimated to have grown at a healthy 15% in the last five years.
However, growth in sub-sectors varies, with the lowest being in basic trucking operations
and highest in supply chain and e-tailing logistics. Some studies estimate the share of
India’s logistics spend in GDP at 13% (versus 7-8% in developed countries), implying
overall size of $180-220 bn (direct costs +wastages from inefficiencies). A comparison
with other countries shows inefficiencies are high in the Indian logistics sector.

Infrastructural bottlenecks across modes (rail, road, waterways) have stifled the sector’s
growth. Capacity constraints and inefficiencies can be noted from the high transit time in
rail as key train routes operate at >110% utilisation, thus leading to an average speed of
25 km per hour. The road sector is fraught with inadequate and low-quality highway
availability, thereby limiting the trucks’ size and impacting economies of operation.

Despite being an economical mode of transport, railways has lost market share in freight
movement to roads in the last few decades due to capacity constraints. Compared to other
countries, India’s rail share in goods transport is 31%, which has come down from 60%
in 1980s and 48% in 1990s.

Another key constraint is administrative delays. Despite being a relatively low-cost

country, logistics cost in India is higher due to administrative delays led by paper work—
leading to huge inventory investments and wastage—and a complex tax structure.

26
Also, low penetration of new technology in the supply chain process is resulting in
damage of goods. India has the least warehouse capacity with modern facilities, and
given the fragmented industry state (large share with unorganised players), investment in
IT infrastructure is almost absent at required scale.

Logistics encompasses a wide array of services like transportation (air, surface, internal
waterways, sea), storage (warehousing, logistics parks, container depots, cold chains)
distribution (courier service, e-tail deliveries),and integrated/allied services (freight
forwarding, 3PL) and investment in logistics boosts growth in its upstream and
downstream economic activities.

DECATHLON INDIA LOGISTICS

In India Decathlon has a tie up with 3rd party Logistician which is APLL Logistics.

Decathlon India has various warehouses which can be categorised as following –

1. CAC- Mother warehouse in India, Bangalore. Area of up to 4 lac Sq. Mt. It contains
30-40 Lakh quantities of item codes at any given point of time.

2. CAR- Situated in India, Bangalore. Area of up to 1.5 Lac Sq. Mt. It contains 4-5
Lakh quantities of item codes.

3. HUB- Situated in Ghaziabad, Hapur. It is comparatively small warehouse comprising

the total area of 20,000 Sq. Mt. Contains up to 50,000 item codes.

∑ Due to the constant high demand of sports goods in northern region, Decathlon is
opening a new CAR in Gurugram, in the Delhi-NCR area, which will start operating
from September, 2016.

27
CHAPTER 4
SAP (Systems, Applications, Products)
India became the 1st country where SAP system was implemented by decathlon
leaving behind the 22 countries where it operates.

∑ Identification of available stock management solutions and the core functionality used
within each solution.
∑ Key differentiators between the main stock management solutions:
∑ Inventory Management
∑ Warehouse Management
∑ Extended Warehouse Management

∑ Guidelines to help determine under which circumstance to use each of the

available stock management solutions.

SAP Solutions for Stock Management

∑ Inventory Management (IM)
∑ ERP Warehouse Management (WM)
∑ SCM Extended Warehouse Management (EWM)

28
Inventory Management (IM)

∑ Inventory Management tracks the quantity and value of a material as it progresses

throughout the location.

∑ Stock is managed by storage locations, which are used to represent logical

sections of the site where goods are stored.

∑ IM provides very limited information about individual lots, such as which

materials are stored in specific storage bins .

Inventory Management – Key Features

Fully Integrated within the Core Modules (MM, PP, SD, FICO)

∑ Real Time accounting posting

∑ Manages Special Stocks (sales order stock, consignment stock)
∑ No visibility of outstanding picking requests
∑ Limited reporting on picking accuracy (planned vs. actual)

IM is well suited for-

∑ Small facility with a simplified layout
∑ Lower levels of inventory on hand
∑ Visual Controls in place to enhance material handling
∑ Simplified material handling processes
∑ Outsourced warehouse operations
∑ Only need visibility of aggregated inventory for the Storage Location.

29
ERP Warehouse Management (WM)
∑ Warehouse Management (WM) provides flexible, automated support in
processing all goods movements and in managing stocks in your warehouse.
∑ Stock is managed at the bin level for exact location of products.
∑ Movement of goods are Point to Point (Dock to Bin, Bin to Supply Area)
∑ Capacity and Volume assist with managing space in the warehouse.
∑ Core System processes support
∑ Fixed Bin Replenishment
∑ Sort- Put away and Picking Strategies
∑ Storage Unit Management
∑ Inbound Material Processing
∑ Internal Movements
∑ Outbound Material Processing
∑ Physical Inventory

ERP Warehouse Management (WM)

∑ Yard Management
∑ Appointment scheduling, check in
and check out.
∑ Assignment of dock doors, loading/unloading activities

Value Added Services

∑ A value-added service (VAS) is an operation performed on materials,
which enhances their value, worth, functionality or usefulness.
∑ Value-added services include the following:
∑ Repacking
∑ Labeling
∑ Shrink wrapping
∑ Cross-Docking

30
 ∑ Management of inbound and outbound movements
∑ System-generated Decisions

Warehouse Management – Key Features

∑ Fully Integrated within the Core Modules (MM, PP, SD)
∑ Manages Special Stocks (sales order stock, consignment stock)
∑ Maximizes warehouse space with the use of storage capacities
∑ Provides full visibility into workload for the user community
∑ Limited reporting on picking accuracy (planned vs. actual).

WM is well suited for-

∑ Small – large facilities
∑ Low – Mid level Volume of Picks
∑ Facilities with Multiple types of storage (Rack , Bulk, Fixed Bin, etc...)
∑ Direct paths for picking and put away
∑ Minimal need for complex Labor and Distance Calculations
∑ Production sites that require bin level visibility on the shop floor.
∑ RF equipment in place to enhance picking and put away.
∑ Simple to Complex material handling processes.

Extended Warehouse Management

∑ Extended Warehouse Management (EWM) offers flexible, automated support for
processing various goods movements and for managing stocks in your warehouse.
∑ EWM gives you the option of mapping your entire warehouse complex in detail
in the system, down to storage bin level.
∑ You can always see the total quantity of a product in the warehouse, and also
know exactly where a specific product is, at any time, in your warehouse complex
∑ With EWM, you can optimize the use of various storage bins and stock
movements, and can store together stocks from several plants in randomly-
managed warehouse

31
32
WM Additional Processes Support
Inbound and Outbound Processes
∑ Yard Management
∑ Expected Goods Received (ASN)
∑ Unloading and Deconsolidation
∑ Cross Docking / Transportation Cross
∑ Docking
∑ Pick from Goods Received and Push
∑ Deployment
∑ Kit to Stock / Kit to Order
∑ Wave Management
∑ Value Added Services

Optimized Internal Processes

∑ Slotting and Rearrangement
∑ Staging for Production Supply
∑ Process and Layout
∑ Storage Control
∑ Warehouse Monitoring Graphical Warehouse Layout

Enhanced Cross Processes

∑ Supply Chain Analytics
∑ Labor and Resource Management
∑ Material Flow System
∑ Auto ID / RFID / Radio Frequency
∑ Framework
∑ Managing Handling Units
∑ Serial Number Support

33
Extended Warehouse Management – Key Features
∑ Complete Functionality to support all major warehousing functions
∑ Master Data is completely separate from ERP
∑ Recommended to be deployed on a separate Infrastructure
∑ Future direction for warehouse management enhancements for SAP.

EWM is well suited for

∑ Small ~ large facilities
∑ High Volume of Picks
∑ High Volume of Cross Docking Opportunities
∑ Complex picking and put away requirements
∑ Need for Labor Management
∑ High volume of Value Added Service tasks.

High level of integration with material handling and flow systems

∑ Stackers
∑ Conveyor Systems

34
SAP EWM FUNCTIONS

35
PROJECT UNDERTAKEN

1. WHAT DO YOU WANT ME TO DO FOR YOU?

∑ To fully identify the logistics potential in India
∑ To create and build in a sustainable manner a holistic supplier panel to support
Decathlon worldwide retail needs including becoming self sufficient for India
retail
2. WHY?
∑ To achieve 30% in value and 50% in quantity made in India products available in
the stores as per FDI laws.
∑ The weak industrial processes: Delay in supply chain management
∑ To ensure the cost of logistics remain low in order to withstand the un-forseen
incidents.
3. NOW LET’S TALK ABOUT RESULTS. HOW ARE YOU GOING
TO EVALUATE MY PERFORMANCE?
Key Performance Indicators (KPI):
∑ SWOT Analysis of the logistics scenario of India
∑ SWOT Analysis of Decathlon categorized warehouses
4. WHAT IS THE INTEREST OF THE COMPANY FOR THIS
PROJECT?
∑ Make in India
∑ Milky supply chain
∑ Lower holding costs
∑ Lower lead times
∑ Minimum order quantities
∑ Knowledge transfer
∑ Eco system creation
∑ Accelerate lagging supply chain processes in India

36
WORKING METHODOLOGY

STEP 1:

GREAT!!!! WELL UNDERSTOOD. THIS IS HOW I WOULD WANT TO DO IT.

RETRO PLAN FOR THE PROJECT:

(Retro Planning is designed from the end date of the project and then going back in time
to place milestones. It is sometimes easier to use this method to produce a planning when
the project end date is known and imperative)

Features:
∑ Retro Plan was designed with the manager in accordance to the company needs.
∑ It is dynamic in nature and can be changed during the course of the project
according to the findings.
∑ Retro plan has both macro and micro elements in it.
∑ Time defined actions

37
STEP 2:

IDENTIFYING INDUSTRIAL POTENTIAL:

Prior to assessing Decathlon growth strategies, it is important to look at the big picture,
the industry as a whole, and assess its growth potential. In determining industry potential,
key considerations include its current size and rate of growth as well as profitability
characteristics and trends.

So for every state under consideration following qualities were decided as parameters of
assessment:

Qualitative Parameters:
∑ Focus industrial sectors
∑ Trade Corridors
∑ SEZs present
∑ Mega/Large industries
∑ MSMEs
∑ Entrepreneurial Attitude
∑ Foreign Collaboration
∑ Sectoral Training
∑ Additional Facilities

Quantitative Parameters:
∑ GSDP and Exports
∑ Total Population
∑ Population Density
∑ Urban Rural
∑ Sex Ratio
∑ Literacy
∑ Population Composition

38
 ∑ Government Objectives
∑ Investment Attraction
∑ Labor Force
∑ Population Growth Rate
∑ Per capita Income

Supporting Infrastructure:
∑ Electricity
∑ Water
∑ Waste Management and ETPs
∑ Connectivity
∑ Security and Hygiene
∑ Education
∑ Wage
∑ Cost of doing business index

Glossary for the way forward into the document:

∑ Industrial Corridor (IC) –

An industrial corridor is a package of infrastructure spending allocated to a specific

geographical area, with the intent to stimulate industrial development.
An industrial corridor aims to crease an area with a cluster of manufacturing or other
industry. Such corridors are often created in areas that have preexisting infrastructure,
such as ports, highways and railroads.
These modalities are arranged such that an "arterial" modality, such as a highway or
railroad, receives "feeder" roads or railways. Concerns when creating corridors including
correctly assessing demand and viability, transport options for goods and workers, land
values, and economic incentives for companies.

39
 ∑ Export Oriented Units (EOUs) –

The needs for higher level of technological and industrial progress made the Government
of India devise a series of export promotional schemes. EOU Schemes are one among
them, which provides an internationally competitive duty free environment coupled with
better infrastructural facilities for export production.
Export Oriented Units (EOUs) now constitute a very important sector in the country’s
Export Production scenario. They have become dominant players in our export strategy,
and their share in the Country’s export performance is about 10%. The export growth rate
of 30% compares very favorably with the National export growth rate.

∑ Special Economic Zones (SEZ)–

The term special economic zone (SEZ) is commonly used as a generic term to refer to
any modern economic zone. In these zones business and trades laws differ from the
rest of the country. Broadly, SEZs are located within a country's national borders. The
aims of the zones include: increased trade, increased investment, job creation and
effective administration. To encourage businesses to set up in the zone, financially
libertarian policies are introduced. Their policies typically regard investing, taxation,
trading, quotas, customs and labor regulations. Additionally, companies may be
offered tax holidays.
The creation of special economic zones by the host country may be motivated by the
desire to attract foreign direct investment (FDI). The benefits a company gains by being
in a Special Economic Zone may mean it can produce and trade goods at a globally
competitive price. The operating definition of an economic zone is determined
individually by each country. In some countries the zones have been criticized for being
little more than Chinese labor camps, where labor rights are denied for workers.

40
 ∑ National Investment and Manufacturing Zone (NIMZ) –

The Planning Commission has in 2013 released the draft of the country’s first ever
National Manufacturing Policy. The objective of the National Manufacturing Policy is to
boost the country’s share of industrial production, employment; development of
world-class infrastructure and investments in India’s manufacturing space

∑ Free Trade Warehouse Zone –

FTWZ (Free Trade and Warehousing Zones) is a policy of the Government of

India (GoI). It was announced in the Foreign Trade Policy 2004-09 to set up Free
Trade and Warehousing Zones (FTWZ) to create trade related infrastructure to
facilitate the import and export of goods and services with freedom to carry out
trade transactions in free currency.

On June 23, 2005, the Parliament of India passed the Special Economic Zones Act 2005
and on February 10, 2006 Government of India notified Special Economic Zone Rules
2006. The Free Trade and Warehousing Zones (FTWZ) is a special category of Special
Economic Zone and is governed by the provisions of the SEZ Act and the Rules.
FTWZ is designated as a deemed foreign territory and are envisaged to be integrated
zones and to be used as International Trading Hubs. FTWZs will be fully independent
mega-trading hubs integrated with state-of-the-art warehouse and
special storage infrastructure, Container Freight Stations, Environment friendly
equipment, Rail sidings for hinterland connectivity, Commercial complexes for offices,
Independent utility stations, banks and insurance corporations added to recreational and
eventual residential complex for the FTWZ workforce.

∑ Domestic Tariff Area (DTA) –

Domestic Tariff Area (DTA) or Domestic Tariff Zone (DTZ) means an area
within India that is outside the Special Economic Zones and EOU/EHTP/STP/BTP.

41
The units operating under certain specific schemes such as EPZ/SEZ/EOU are expected
to carry out their activities within a customs bonded area. Any area which is not under
the jurisdiction of a custom bonded area is called a Domestic Tariff Area.

∑ Micro Small Medium Scale Industries (MSME) –

In accordance with the provision of Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in
two Classes:

(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or

production of goods pertaining to any industry specified in the first schedule to the
industries (Development and regulation) Act, 1951) or employing plant and machinery in
the process of value addition to the final product having a distinct name or character or
use. The Manufacturing Enterprise are defined in terms of investment in Plant &
Machinery.

(b) Service Enterprises: The enterprises engaged in providing or rendering of services

and are defined in terms of investment in equipment.

The limit for investment in plant and machinery / equipment for manufacturing /
service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Manufacturing Sector
Enterprises Investment in plant & machinery
Micro Enterprises Does not exceed twenty five lakh rupees
Small Enterprises More than twenty five lakh rupees but does not
exceed five crore rupees
Medium Enterprises More than five crore rupees but does not exceed ten
crore rupees

42
 Service Sector
Enterprises Investment in equipments
Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but does not exceed two
crore rupees
Medium Enterprises More than two crore rupees but does not exceed five
core rupees

STEP 3:

NEED IDENTIFICATION (DEMAND SIDE)

Three stages of need Identification:

1. Customer Procurement Manager meeting
2. Product analysis at the store
3. Data Mining

∑ CPM meeting :
1. Introduction.
2. Understanding roles.
3. Product universe. (Introduction to the products under various passion brands).
4. Business in India. (% of total in manufacturing as well as Turnover in respect to
Global business of Decathlon and also DSI).
5. Quantity DSI and future projections.
6. Turnover DSI and future projections.
7. Identification of priority products and components.
8. Supply Chain (Manufacturing to In Store process, generic or specific priority
products).
9. Current Supplier base in India.
10. Current challenges in terms of production and supply chain.

43
 FINDINGS
CAC and CAR SWOT ANALYSIS

BANGALORE

Strengths: (Internal) Weaknesses: (Internal)

1. Mother Warehouse 1. Glitches in SAP System
2. Critical component in operational 2. To implement any project in relation
efficiency to SAP have to wait for France team
3. Contribution towards customer approval.
satisfaction
4. Implementation of SAP system
5. Mixed culture work
6. Largest number of operational
transfer of goods

Opportunities: (External) Threats: (External)

1. Increase in no. of Retail outlets in the 1. New CAR opening in north.
south. 2. Different states have different
2. GST goods implementation policies.

44
 HUB

GHAZIABAD

Strengths: (Internal) Weaknesses: (Internal)

1. Best selling stores are in north 1. Team Crunch
which it caters to. 2. Higher attrition rate
2. Qualified Team 3. Transportation Delays
4. SAP system glitches

Opportunities: (External) Threats: (External)

1. New upcoming CAR 1. Different state regulation changes
2. GST implementation act. time to time.

Ratings Given by the Store

45
ÿ FEBRURARY

ÿ MARCH

46
ÿ APRIL

47
LEARNING OUTCOMES

• DATA CONSOLIDATION AND REPRESENTATION

• REPORTING FORMATS

• UNDERSTANDING LOGISTICS PROCESS

• COMPANY PROCESS QUALITY SOCIAL AUDITS

• SUPPLIER MANAGEMENT

48
CONCLUSION

Being a cost leader in an industry which highly depends on technology and innovation is
not easy. Hence the prime challenge is to identify the market pull as fast as possible and
procure the products of the best quality at the best prices. For that identification of
capable suppliers who are ready to collaborate and/or manufacturing infrastructure is
required where the suppliers bargaining power becomes too high. And subsequent cost
reduction through removal of vestigial operations can be answer to the market
penetration strategy ensued by Decathlon. The sports retailing industry is growing by
leaps and bounds in the domestic market by around 35-40% CAGR.

49
EXECUTIVE SUMMARY

Decathlon in a nutshell is an innovative cost leader in the industry of sports retailing.

The company works with a lean supply chain model for efficient and cost efficient
production which is its primary motive. Now for a cost leader it is immensely difficult to
be innovative because innovation costs(R&D, IP etc) it shoots up the cost of end products
and thus any company tends to be “Stuck in the middle “of not being either a cost leader
or an innovator. Decathlon business model compensates for the innovation expenses
through cutting down costs in marketing and advertisement departments by primarily
promoting its brands through “word of mouth” promotion through its stakeholders at
large which might be the least aggressive promotion strategy in the short run in the
contemporary market scenario, however deemed to be the most impactful in the long run
creating a huge portfolio of brand ambassadors among its stakeholders.

The company history is a classic case of adaptation to market changes and incorporation
of strategies according to the “pull” of the industry. At a time in 1976 when it was
incorporated branding of products was not a very strong determinant of value addition.
This was for the fact that only a few names were present in the sports retailing arena
competing with almost similar products but due to the contemporary push strategies,
huge instauration (gap between demand and supply) and low demand creation in the
market neither was innovation required and nor was branding.

In 10 years with new company’s coming into the market creating a need to have
differentiated products Decathlon went into the mode of co-creating its products best
suited to its customer base. So it started off as a primarily trading brand working in
Lille,France. Finally 10 years later in 1996 it went a step further it creating its own
“Passion brands” catering to different sports and adventure universes (such as team
sports, racket sports, hiking etc. ) and creating new “Umbrella brands” (Btwin, Quechua,
Domyos etc.). The brands were further improvised with co-branding through very strong
component brands such as “Shimano” for its Btwin. All strategies incorporated were not
successful in the long run and thus were eliminated after assessment. A few Co-brandings
did not come up with best results and after scrutiny they were subsequently dropped
because it did not seem to create any significant value addition to the products.

The testing of each product is done separately by the specialized teams are hence the
headquarters of each category is located in places where the surroundings enable the
product testing. (aqua products in a coastal location, hiking products in a mountaineering
location etc.).

The products were added unique value through it’s in store experience, CRM strategies,
value for money and never before heard after sales service policies in the sports retail
which gave replacement guarantee on its products.

50
The company started expanding once it felt it product mix was up to the global standards
and initially it expanded stores in France and then expanded throughout Europe through
various expanding its retail catchment areas. The company turned its attention to both
east and west in USA and china in the 2000s. China was a mammoth success while USA
did not make such an experience due to demographic and strategic mismatches.

It came to India in 2009 after FDI relaxation and viewing the market potential the
company went into a vigorous expansion mode almost similar to China. A very unique
promotion policy that the firm incorporates is by respecting a nation’s sporting
sentiments and inclination. In China there is a huge number of people into racket sports
(Artengo ) and Basketball (Kipsta) hence the company has a huge infrastructure in a
prime location providing 9 basketball courts, table tennis tables etc. In India they created
an umbrella brand for cricket enthusiasts.

Currently the company is generating revenue of close to 10 billion Euros through it 975
retail outlets worldwide.
Our main objectives as a part of the sourcing team are as follows:
1. To increase the share of “Made in India” products for Decathlon. (Promised at 30% to
Govt of India by 2017) and henceforth minimization of the imports.
2. To identify potential suppliers and make the most of industrial potential inside the
boundaries of the country.
3. To identify the tax implications on the movement of raw materials and end products.
4. To promote exports from DSI.

Being a cost leader in an industry which highly depends on technology and innovation is
not easy. Hence the prime challenge is to identify the market pull as fast as possible and
procure the products of the best quality at the best prices. For that identification of
capable suppliers who are ready to collaborate and/or manufacturing infrastructure is
required where the suppliers bargaining power becomes too high. And subsequent cost
reduction through removal of vestigial operations can be answer to the market
penetration strategy ensued by Decathlon. The sports retailing industry is growing by
leaps and bounds in the domestic market by around 35-40% CAGR.

51
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52
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53