Improving the Process of Delivering Goods from the Manufacturer to Retail Stores (Case of Koton)

The crisis of 2020 and the completely new conditions for the introduction of offline business created by the pandemic have led to a situation where most retail businesses are on the verge of bankruptcy. The closure of shopping centers, the ban on the population from leaving home, the reduction of jobs in enterprises, the decline in the purchasing power of the population and the general mood after the pandemic "do not spend money on unnecessary purchases" - led to a decrease in the revenue of retailers, which significantly affected the economic situation of many companies. In such difficult times for business, it is once important to increase your net profit, and since you should not expect an increase in revenue due to the economic situation in the world, you need to focus on reducing costs to increase net profit. The purpose of this Final Qualification Work is to improve the delivery process from the warehouse of the clothing manufacturer Koton to retail stores in Russia by changing the strategy of choosing a carrier for international transportation, partially replacing road transport with sea transport and changing the location of the distribution warehouse in the south of Russia. As a result of this work, the carrier for each international transport will be selected through an Electronic Trading Platform through a small tender. Also, the delivery of imported supplies from Turkey to all Koton stores in the cities of Sochi, Novorossiysk, Volgograd, Krasnodar and Rostov-on-Don will be carried out by sea from the port in Gebze to the port in Novorossiysk. This will reduce transportation costs and reduce delivery time. The distribution warehouse in Krasnodar increases the time and cost of delivery from the port to the warehouse due to its location, and therefore the work suggests changing the location of the warehouse to Novorossiysk - the nearest city to the seaport. All the above proposed ideas were implemented, and the economic effect was calculated based on the real rates of carriers. As a result, the company managed to reduce more than 23 million rubles for transportation, which increased the amount of net profit and positively affected the return on equity. The company will reduce the cost of each unit of goods on the shelves by 4.6 rubles, which is quite high, given the low cost of goods.