ADISSERTATION ON
“STORE OPERATIONS AND LOGISTICS IN BIG BAZAAR WITH SPECIAL REFERENCE TO
DELHI/NCR”
A dissertation submitted to Accurate Institute of Management and Technology
Greater Noida as mandatory part of PGDM course.
Submitted By:- Submitted To:-
ABHIK KUMAR ROY PROF. RIPUDAMAN GAUR
Roll No:-AIMTDM1113101
Batch 2011-2013
ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY
49, Knowledge Park – III, Greater Noida-201306
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DECLARATION
I am ABHIK KUMAR ROY, student of “ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY”, REG No. AIMT DM1113101 PGDM (6th Trimester) hereby declare that the Final Project entitled “STORE OPERATIONS AND LOGISTICS IN BIG BAZAAR WITH SPECIAL REFERENCE TO DELHI/NCR” is an original work and the same has not been submitted to any other institute for the award of any other degree.
DATE: ABHIK KUMAR ROY
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ACKNOWLEDGEMENT
Completing a task is never a one man’s effort. It is often the result of direct or
indirect invaluable contribution of a number of individuals.
It is indeed a great pleasure to take the opportunity to extend my sincere thanks
to all those whose help and guidance made this endeavor a successful one.
I am special thanks to PROF. RIPUDAMAN GAUR, ASSISTANT PROFESSOR AT
AIMT, Greater Noida for giving me an opportunity to write my Dissertation
Report under his guidance and supervision and for all the help and support which
led me to complete the project.
Last but not the least the information contained in this project is true and correct
to the best of my knowledge and believe.
ABHIK KUMAR
ROY
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CERTIFICATE FROM GUIDE
This is to certify that Mr. ABHIK KUMAR ROY Roll no: AIMTDM1113101 from “ACCURATE
INSTITUTE OF MANAGEMENT AND TECHNOLOGY” has proceeded under my supervision
upon Research Project Report on “STORE OPERATIONS AND LOGISTICS IN BIG
BAZAAR WITH SPECIAL REFERENCE TO DELHI/NCR” in the specialization area
“MARKETING AND FINANCE”.
The work embodied in this report is original and is of the student expected of an
PGDM student and has not been submitted in part or full to this or any other
university for the award of any degree or diploma. He has completed all
requirements of guidelines for Research Project and the work is fit for evaluation.
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Signature of Guide
TABLE OF CONTENTS
TOPIC PAGE NO.
ABSTRACT 1
COMPANY PROFILE 2
TRACING GROWTH PATTERN 3
VISUAL MERCHANDISING 4-5
FOCAL POINTS 6
FIXTURE AND HOLDING CAPACITY 7-9
BUSINESS ANALYSIS 10-13
SWOT ANALYSIS 14-16
ROLE OF I.T. IN BUSINESS 17-18
SECURITY & ADMINISTRATION 19-21
LOGISTICS AND BACK END 22-38
CONCLUSION 39
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LIST OF REFERENCES 40
ABSTRACT
Retail forms the core business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Group’s retail network touches the lives of more than 200 million Indians in over 61 cities and 65 rural locations across the country. The group c
urrently operates around 1,000 stores spread over 10 million square feet of retail space. Present in the value and lifestyle segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-section of Indian consumers.
Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most popular retail chains like Pantaloons -- a chain of fashion destinations, Big Bazaar -- a uniquely Indian hypermarket chain, Food Bazaar -- a supermarket chain
that Is related to home building and home improvement is led through the group’s formats, Home Town, a large-format home solutions store, along with specialized formats for home furniture and home furnishing through, Collection i and Furniture Bazaar and consumer electronics through eZone and Electronics Bazaar.
The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65 locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution provider for the Indian farmer.
In 2007, Pantaloon Retail was awarded the International Retailer of the Year by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year at the World Retail Congress held in Barcelona.
The management was aware that in retail, size mattered. The business revolved around volumes. Lifestyle retailing did not really provide these volumes; the volumes came from the large Indian middle class market that was waiting to be trapped. Big bazaar – the discount store was launched in the year 2001, to meet the aspirations of the middle class. In short span of two years, it has added a food bazaar and gold bazaar to its range of offerings.
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Retail in India is still at a nascent stage. This project takes us deeper into the operations of a brand new BIG BAZAAR at BARDHAMAN(NEAR JAILKHANA MORE)
COMPANY PROFILE
Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Pantaloon Retail (India) Limited operates over 10 million square feet of retail space, has over 1,000 stores
Future Group is present in 61 cities and 65 rural locations in India. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com.
Future Group companies includes, Future Capital Holdings, Future Generali India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels.
The group’s joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkar’s, Blue Foods and Liberty Shoes.
Future Group’s vision is to, “deliver Everything, Everywhere, Everytime to Every Indian Consumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core value and its corporate credo is - Rewrite rules, Retain values.
Big Bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers.
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With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, and much more at cheaper prices. And this is just the beginning.
Tracing the Growth Pattern
Pan India Model
Riding on the consumption boom that the country has been witnessing over the past couple of years, the company further expanded its foray into the value space by adding 10 stores during the year 2007-08, entering new cities like Vishakapatnam, Pune, Lucknow, Indore, Mangalore and Rajkot. The excellent performance of these new stores, further fortified the mass appeal of Big Bazaar as a true, family shopping destination.
Awards & Recognition
The popularity of Big Bazaar was also quite evident in the number of awards it won through the year. Interestingly, most of these awards were based on polls taken among customers across the nation. In the month of July 2006, Big Bazaar won the prestigious ‘CNBC TV18 Awaaz Consumer Award 2006’, in the retail category, as the most preferred, large, food and grocery store. Conducted in association with AC Nielsen-ORG Marg across 21 major cities and over 40 categories, nearly 10,000 respondents were asked to choose their most preferred brands. It was adjudged the Best Value Retail Store and Best Retail Destination for the year 2007
In the latest Reader’s Digest Consumer Survey 2007, Big Bazaar won the prestigious Platinum Trusted Brand Award in the Indian services category. Big Bazaar scored at least doubles that of its nearest competitor.
DESH BADLA BHESH BADLO…
Big Bazaar continues to be a fashion-led delivery format, with fashion comprising about 40 per cent of its revenues. Fashion got a further fillip through the standardization of the visual merchandise at all existing and new stores. The communication focused on it being the fashion destination of the masses..
THE NEW FASHION @ BIG BAZAAR CONCEPT IS ADDING ON THE FIGURES OF BUSINESS.
A Big Bazaar store measuring more than 150,000 square feet opened in Bangalore in October 2006. This takes Big Bazaar to the next level.
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THE CITY NOW HAS 6 STORES WHICH REFLECTS ITS TRUE GROWTH.
Visual merchandising
Visual merchandising is creating visual displays and arranging merchandise assortments within a store to improve the layout and presentation and to increase traffic and sales
As an example, Mannequins are commonly used as a way to promote products relating to appearance, such as clothing or accessories.
Mannequin dress forms for generating visual displays.
Visual merchandising gives –
Due to scientific presentation of merchandise and clarity of communication the customer is induced to buy more.
Effective displays results in a strong presentation and can win customers trust.
It also influences buying behaviour with a well thought merchandise arrangement.
Adequate information about the products fitting and style to the customer.
A creative medium to present merchandise in an appealing environment, thereby creating an impression in the customers mind.
It acts as a bridge between fashion, product design and marketing by keeping the product in prime focus.
Combining the creative, technical and operational aspects of a product and the business.
Drawing the attention of the customer to enable him/her to take purchase decision within shortest possible time, and thus augmenting the selling process.
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Other tools are Color blocking, store layout, focal points , fixtures, and signages.Visual merchandising has evolved beyond simple window displays. Growing brand awareness has procreated a whole new genre of point-of-purchase displays
Arranged merchandise----Easy to find------Easy to pick.
Aesthetically pleasing
Easy to buy
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FOCAL POINTS
Besides the area where most of the merchandise is displayed and stored, there are feature areas- areas within a store designed to get the customers attention. These include end caps, promotional aisles or areas, freestanding fixtures and mannequins that introduce a soft goods department, windows, point of sale or cash wrap areas.
Focal points are those key areas in the store which generate sales through impulse
The key focal points in the store are :
A cluster of mannequins. Promo bins Half Bust Mannequins Glow signs Announcements and many others..
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Fixtures and their holding capacity-
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The holding capacity of the fixtures depends on the type of merchandise to be kept in the fixtures, promo bins are usually for FPP s and lucrative offers.
GAP TABLE –
Menswear –Tshirt 7 in a stack, Formal shirts 6 in A stack,Formal and casual trousers 12 in a stack,Denims 6-7 in a stack, Casual shirts and kurtas 12 in a stack,Cargos and jackets not to be stacked.
Women wear— Kurtas 12 in a stack,Salwar 12 in a stack ,Blouse 12 in a stack ,Formal and casual trousers, denims 10 in a stack, Skirts 12 in a stack
Kidswear - Ethnic wear 14 in a stack, Tops and shirts 14 in a stack, Shorts 14 in a stack
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GONDOLA
Menswear
HANGING- Cargos 25, formal trousers 30, casual trousers 30, t shirts 25, casual shirts 25, jackets 20, ethnic kurtas {not long} 25,
SHELF – (THREE STACKINGS ON A SHELF ) Denims 8, t shirts 10/12, casual shirt 10, jacket 8, ethnic kurtas 10,
Womenswear
HANGING – Kurtas 25, salwar 30, blouse and t shirts 35, formal trousers, denims, cotton trousers 30, skirts 30
STACKINGS – Kurtas, salwar, blouse and t shirt, formal trousers, skirts, denims, cotton trousers – 12-14
Kidswear
HANGING –Ethnic wear, tops, shorts, all bottom wear – 30-32
STACKING -Ethnic wear, tops, shorts, all bottom wear – 10-12
WALL FIXTURES-
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SIDE HANGING
Menswear- Cargos,denims, casual shirts 35, Formal trousers, casual trousers, t shirts 40,Jackets, ethnic kurtas 30
Womenwear - Kurtas, formal trousers, denims, cotton trousers, skirts 35-37
Kidswear/infants- Ethnic wear, tops, shorts, all bottom wear 55-60
Business
Footfalls – footfall in retailing terms is the entry of customers into the store for business. Any customer who walks into the store irrespective of his/her age is considered as a potential customer and has the capability for purchase. The footfalls are measured or rather counted by the security personnel; who are appointed at the entry gate through a specific device meant for the purpose. The footfalls at the store level are recorded on an hourly basis for a better analysis of sales growth and other key
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performance indicators such as conversion, average garment value, average ticket value etc.
Conversion – conversion may be defined as the percentage of people who really make a purchase out of the total people that has actually entered the store. It is expressed in percentage and the mathematical formula is:
Conversion = total number of invoices/total footfalls * 100
WAYS OF INCREASING FOOTFALLS
Advertisements and promotions – brand building and brand awareness are the two most important tools in advertising.. advertisements through television, printed media, publicity and other promotional activities create a hyp in the market about the product and thus increases the store footfalls. Special promotions like ‘mahabachat’ for example too increases the customer flow inside the store.
Visual appeal – good visual appeal of the store makes the store attractive and the desire for purchase and the customer footfall both increases
BTL activities – short form for below the line activities which means publicity in local areas, handling good neighborhood relationship, and other marketing activities result in the increase in store footfall. For the BTL activities each store is allocated with a certain amount per annum through there store budget and all the stores have to do there respective BTL activities within that budget.
Brand ambassador – creating a brand ambassador changes the outlook of the store and the brand in totality. For example take for example big bazaar changing its outlook into a fashion destination and bringing in Mahender Singh Dhoni and Asin as its brand ambassador has changed the perception of people and thus has resulted in an increase in footfall.
Quality customer service – customer service is the most important factor in increasing the footfall of the store and in maintaining the regular customers.
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BUSINESS TERMS:
Cross Selling: Cross selling means creating a desire in the customers mind to buy a product which is not exactly required by him/her at the present moment but the desire for which has already been built inside him by the facilitator and finally makes a purchase.
For example, let us assume a customer comes inside the store to purchase a formal shirt in solid colour. Now if the customer facilitator who is attending him is an apt and able person then he would give the customer the particular shirt along with a matching trouser and a tie to try on and see how it looks on him. The result being the customer might like the combination which is given to him for trial and he might buy all. This theory of selling is called cross selling.
Up Selling: Up selling is that phenomenon of selling in which the sales person tries and sells high value garments to customers. Foe example say a customer has come to purchase a sari within range Rs 1000/- and the sales person shows him the garments ranging from Rs 2500/- which he liked and purchased. This phenomenon of increasing the average buying capacity of a customer is called up selling.
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After the launch of BIG BAZAAR as a brand the sales has picked up in the store as compared to fashion station as before,
The major contributors to the store sales are BB FASHION, FOOD BAZAAR,GM- Home.
The major reasons being the development of the store in different horizons as well as merchandise categories to steadily organise the sales that adds up to the growth pattern.
We now do a comparitive check in an analysis graph to have a check at the comparisons of sales of two years and the business accrued by the store department wise.
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LOB Wise Contribution (Sales) of the Lines Of Business
The following represents the LOB wise contribution of the different departments, this will give a clear idea of the respective departments contribution and at the same time performance.
Lob ContributionBB-Fashion 22%
BB-GM-Homeware 8%Beauty 1%
Business Development 0%Communications 4%
Depot 1%Electronics 8%
Financial Products 0%Fit and Healthy 0%
Food Bazaar 31%Footwear 2%Furniture 4%
Home & Hard Goods 0%Home Fashion 2%
Home Improvement 0%Luggage 2%Navras 11%
SIS/OTHERS 1%Toys & Sports Goods 2%
Watches and Sunglasses 0%Grand Total 100%
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SWOT ANALYSIS OF BIG BAZAAR
STRENGTHS
1) ONLY OF ITS KIND- Big Bazaar gains the advantage of being the only hypermarket in the town, and the first of its kind.
2) VISUAL MERCHANDISING- Amongst all the stores, this store stands out to have the best displays all in terms of mannequinns, signages, arrangements that make up to a fantastic ambiance altogether and also serves to be a major factor in boosting sales.
3) CUSTOMER SERVICE- with a no questions asked return policy and delivery of goods to residences on promised times, this store has held up a goodwill of delivering excellent customer service.
4) DIVISION OF LABOUR AND SPECIALIZATION- The employees in the store are properly judged and then they are divided as per their individual capacities where they can deliver their best.
5) CONVERSIONS- The store has an average conversion of about 60-70% that is above the normal average maintained by many reputed stores.
6) SEGMENTAION AND POSITIONING- The market has been segmented in a very concrete manner in order to meet the demands of the people. The store is clear about the target audience and focuses to maintain the needful standardizations.
7) CLOSENESS TO THE CENTRAL DISTRIBUTION CENTRE-
8) BRAND IMAGE OF BIG BAZAAR
9) NEARNESS TO THE STATION AND BUS STAND.
10)FOOD BAZAAR- In a locality where Mom and Pop stores rules the market segment, Food bazaar stands out to be a major crowd puller and also generates the maximum sales to the store.
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WEAKNESS-
1) FOOTFALLS- Even with high conversion levels the store is still lagging behind other stores in drawing customers ,Now with the brand image developing and service standards properly maintained the footfalls are expected to increase than before.
2) PARKING SPACE- The store lacks a proper parking space and the proportional area is less as compared to the store area. In times of rush the area becomes a mess for both the shoppers and the store authority.
3) MODES OF LOCAL TRANSPORT- In a town where rickshaw and personal vehicles are the only modes if communication for local transport, it becomes difficult for a customer from distance to buy daily needs spending much on transport
4) CULTURE- Organised retail is still at its infancy, people have not yet developed the habit of retail, their preference still is restricted to local markets.
OPPORTUNITIES-
1) SHIFT IN ATTITUDE- People now prefers to walk around Food Bazaar using a trolley for their daily needs, rather using the old shopping bag to the local market,
2) The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment.
3) With the rise in prices the store is constantly providing value for money to the customers, this with the span of time has a lasting effect for daily requisites
4) There is always scope for improvement in a stand alone store at a location and many residential complexes coming up around, the store has to maintain the goodwill and the rapport with the customers to seek proper growth over the years.
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THREATS-
1) Understanding the sentiments- Customers have to be taken care off, and in terms of quality standards you need to meet the expectations of the people, even a little drop in service delivery may cause a change in mind set of a loyal customer.
2) If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover.
3) Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping.
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ROLE OF IT IN STORE OPERATIONS-
Retail is all about selling, selling big and selling huge. It's all about ensuring that the
customer first of all comes to the store and then buys. This also means that one should
connect to the customer and should be able to hold him in one place and give him all
that he desires from one location.
One of the key factors in achieving an organized and efficient retail operation is the use
of technology as an enabler . Information Technology is the key enabler to improving
customer satisfaction, operational efficiencies and by extension, profitability.
Technology has been the great enabler of business and especially retail enterprise. We
are now wireless and seamless and cashless and everything less and can get any
information we want and need.
A typical pan national retail operation would have multiple regional warehouses, offices
and retail outlets. In such an operation, how does the headquarters know the daily
turnover at each of its outlets, how does it know which products are selling the most in
which region at which outlet, how does one store know if a stock – out item in its own
inventory is available at another store location for whom it is slow moving item? Most of
these issues can be solved by the appropriate use of technology.
Information Technology involved in Retail operation.
Retail Demand Forecasting: This new approach to demand forecasting in retail
will contribute to the accuracy of future plans, the satisfaction of future customers
and the overall efficiency and profitability of retail operations.
Inventory Management: An IT solution is a proven and market leading solution
for determining optimal time-varying inventory targets for every item, at every
location throughout supply chain. and with auto replenishment system comes
into work the involvement of IT cannot be denied. This allows retailers you to
significantly reduce inventory without adversely affecting service levels.
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Store Management: The in-store system use magnetic strips or barcodes or
RFID to monitor actual versus intended product location on the floor or in the
stockroom.
Place where IT supports is must in store operation :
Uploading of I-Doc is done by the IT people which helps in store operation. This I –
doc help in transferring the data of Rem server to sap server,.
For power pricing or global discount it has to create the different header for that
particular discount. all the header of different discount in rem server is created by IT
persons which helps in hassle free operation of the cashiers.
It also plays a major role in cycle counting which is again a very important part of
retail operation. The cycle counting mis done under certain control no. which is
created by IT.
Apart from software the IT are also responsible for the proper functioning hardware
especially at cashpoint and also of the store.
Conclusion:
This result demonstrates the significant role of information technology in today's
business world and in retail management. It indicates that a sound Information
Technology system is imperative to success in large format retail. IT system can be
leveraged to increase efficiencies in supply chain and vendor management as well
as centralize their control.
An efficient IT system a retailer can observe sales and consumer behavior more
efficiently and accurately and thus plan its sourcing and customer promotions more
effectively. This result also lead to the conclusion that use of new technologies in
retailing helps to increase customer loyalty and customer satisfaction. An IT system
is also beneficial for various retailing related operations.
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SECURITY-
The security personnel are outsourced from agencies. In BB manikarn there are total 11 security guard outsourced through ASI According to the standard operating procedure there should at least one security
personnel for every 3500 square feet. The points where security positioning is important are:
Staff Entry and Exit
Customer’s Entry
Customer’s Exit
Warehouse
Parking Lot
Role of security:
FUNCTIONS OF SECURITY PERSONNEL
To count the footfall entry inside the store, except infants with the counting machine and provide the details to the security supervisor every hour in order to facilitate “Customer Footfall Report”
Security Staff to adhere to the prescribed Store Opening & Closing Process
The guards will be responsible for maintenance of Registers and Frisking of Staff.
To check that all Staff enter the Store with appropriate uniform and display their ID Cards.
Security Guard to ensure that the Attendance of Staff is recorded before entry into the Store.
Housekeeping Staff, Security, Promoters, and SIS Staff to record their Attendance in the respective Register.
All Personal belongings/bags of Staff to be kept inside the respective lockers and not allowed inside the Store. Staff carrying valuables to declare the same in the Staff Value Declaration Register.
Security to frisk all Staff before they enter the Store Area. Male guards to frisk men and female to frisk lady Staff.
Movement of Staff, Housekeeping, SIS Operators, Promoters during Lunch, Tea Breaks and Break Shifts to be recorded in separate Registers
Security Guard to maintain separate Break Registers for Staff, Housekeeping, Security, Promoters and SIS to record lunch and tea breaks.
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All staff members to be strictly frisked before they leave the store premises and their belongings to be checked thoroughly.
Administration
All organizations need timely and effective office and administrative support to operate
efficiently. Office and administrative support supervisors and managers coordinate this
support. These workers are employed in virtually every sector of the economy, working
in positions as varied as teller supervisor, customer services manager, or shipping and
receiving supervisor.
Although specific functions of office and administrative support supervisors and
managers vary significantly, they share many common duties. For example, equipment
and machinery used in their departments must be in good working order. If the
computer system goes down or a fax machine malfunctions, the supervisors must try to
correct the problem or alert repair personnel. They also request new equipment or
supplies for their department when necessary.
ROLE AND RESPONSIBILITIES OF ADMIN EXECUTIVES IN BIG BAZAAR
1. HOUSEKEEPING -Maintaining checklist. vendor selection,Attendance and MIS, bill
clearance, recording Of legal companies and expenditure and details of housekeeping.
2. SECURITY - having checklist. vendor selection, maintain attendance and MIS, bill
clearance, recording of legal companies and expenditure and details of security
3. FACILITY AND SAFETY- Customers facilities like A.C, lighting, drinking
arrangements etc.
4. LIASIONING - liasioning with local clubs, police station, Legal Metrology etc.
5.LOSS PREVENTION- CCTV, checkpoint, intruder alarm system etc.
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6. AMC & Licenses- All AMC & Licenses as per SOP
7. Office administration -Telephone lines, car, stationeries, Vending machine, fax,
Xerox machine etc.
8. Vendor Dealing -Vendor dealing (rates confirmation & Registration)
9. Event planning- Big day planning like freedom dhamaka, Republic day (mahasaving
day), chaitra sale, Exchange mela , puja sale etc.
10. Reports and documentation- Reports like admin exp, car run report, telephone
11. Maintenance -Preventive & curative exp
12. Team management -Internal relationship with HK, Sec. Disaster Team , operation
team.
13. Disaster Team handling -Fire safety, flood, earthquake, bomb threat etc
WAREHOUSE
Inwarding of Big Bazaar Merchandise
Process examines the methodology of inwarding merchandise in Big Bazaar for;
Transfer of merchandise undertaken by PRIL Warehouses/Delivery Centre to the store
Merchandise delivered by vendors directly to stores
Merchandise belonging to SIS for entering/exiting the store
Receipt of Goods by the store warehouse for transfers effected by PRIL Warehouses/ Delivery Centres
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Basic Principle governing the process:
Goods are received according to the Stock Transfer Note issued by the warehouse
They are inwarded by:- SAP Enabled stores:- By invoking the handling unit number and
undertaking a global count of items sent
Non-SAP enabled stores:- By entering each item in the system and inwarding.
Receipt of Goods at the Store Warehouse and Security checking procedures
Delivery vehicle arrives at the store warehouse.
Security personnel to receive the supporting documents (like STN, gate pass) and hand over the same to the warehouse personnel undertaking the in warding.
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Document set is checked by warehouse personnel to ensure it contains a Stock Transfer Note (STN) in duplicate and an outward gate pass issued by the dispatching warehouse.
Warehouse in charge to confirm from the respective DM/ADM on the stocks received from warehouse and obtain his signature on the STN.
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Security personnel to check the vehicle to ensure the seal on the cargo area are intact and secure.
Unloading of Merchandise and recording of the same in security register
Unloaders to remove the cartons from the delivery vehicle.
An H.U. No. - Handling Unit Number (which is a unique number) is pasted on each carton.
During unloading, the inwarding staff should mark off each H.U. No. on the STN.
Independently, the security personnel to maintain a count of the number of cartons being unloaded.
When all cartons are unloaded, the inwarding staffs to check the STN and ensure all cartons marked for delivery for the store have been received. The number of cartons for delivery to the store (as indicated in the STN) is cross-checked with the count maintained by the security personnel while unloading.
Security personnel to record the inwards in the inwarding register (Refer to Annexure 2). Details of GRN are left blank at this moment and will be filled in once the goods are inwarded into the system.
Security personnel to stamp the two copies of STN with inward received stamp, mentioning the inward number (according to their register), number of cartons unloaded and date. The Security Personnel should retain the original set of documents and handover the complete set to warehouse personnel who in turn will handover the duplicate copy of STN to the delivery vehicle staff after verifying both the copies.
Re-Sealing the vehicle for its onward journey
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Deliveries in a lot of cases go to multiple locations. Hence once unloading at location 1 is complete; security personnel from location 1 are to seal the vehicle again with paper seals. A stamp of the store and signature of security personnel to be recorded on the seal.
Inwarding of the consignment The unloaded cartons to be brought to the store warehouse. The STN
governing this consignment is to be invoked in the SAP system
Each carton’s H.U. no. is displayed by the system. On selecting particular H.U. nos. the contents of the carton are displayed by the system.
It is very critical that Warehouse staff opens all cartons and undertake a count of the items contained in each carton. This count should tally with the number of pieces displayed by the system. No carton should be inwarded without counting.
Once inwarding is complete and saved, the system generates a Goods Receipt Note (GRN) confirming the items which were received. The GRN is printed and attached to the set of documents pertaining to this consignment.
The details of the STN, GRN and actual quantity received to be recorded in the warehouse inwards register.
The warehouse inwards register to be handed over to the security personnel everyday to enable him to record the GRN number against the STN entry in their security register.
After which both registers are forwarded to the SM/ASM for his verification and signature ensuring 100% GRN at the end of the day.
The entire set of documents is forwarded by the warehouse staff to zonal/store (wherever applicable) accounts department for effecting payment. A record of all the documents sent to accounts to be maintained in a register at the store warehouse.
Sample erroneous consignments for testing the system
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During every quarter, consignments will be sent which have a shortage of items. This is being done to check whether stores are able to detect the shortage while undertaking the inwarding process. These checks will form part of the audit process used for reviewing the store’s operational performance.
Scanning of items in REM system Currently the stores point of sale system is running on the REM platform.
Hence a check needs to be performed on the items being inwarded to see if they are recognized by the REM system. Thus one SKU per carton received needs to be scanned at the store warehouse to ascertain if the item reflects in the REM system. If the items exist in the REM system they are in order and can be shifted to the sales floor.
Receipt of Goods by the Store warehouse for deliveries affected by vendors directly to the store
Basic Principle governing the process: Goods are received strictly as per the P.O. issued
The consignment is inwarded by entering each SKU in the system
Arrival of goods at the store warehouse and document verification On arrival at the store warehouse the vendor informs the security
personnel. If a queue of vendors exists, security personnel to issue the vendor a token number. On his turn, arriving security personnel to call the vendor and verify the documents pertaining to the consignment.
Document set is checked for the following: -
A signed P.O. which has not expired
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Invoice of the supplier
Delivery Challan in duplicate
Warehouse personnel to ensure that the items are bar-coded prior to unloading by undertaking a sample check
Security staff to supervise unloading of the consignment into the store warehouse and maintain a count of the number of cartons unloaded.
Security staff to record the inwards in their security registers.
Warehouse staff to open the cartons and do a global count of the items received to confirm that the quantity received is in order. Any shortages are to be brought to the notice of the vendor’s delivery personnel and noted on the spot on the delivery challan and invoice.
Security staff to stamp the suppliers delivery challan with the inwards received stamp. The store should get stamps made with the following fields:
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Store NameP.O. No.
Nos. of carton & pieces received
Received date
One copy of delivery challan to be handed over to vendor while the set of documents consisting of P.O., suppliers invoice, original delivery challan to be retained by the security staff and handed over to the store warehouse personnel.
Inwarding of the consignment Warehouse staff to invoke the P.O. for that consignment on the SAP
system
Warehouse staff to check the consignment and ensure goods delivered are as specified in the P.O.
Each SKU to be checked against what has been ordered in the P.O. with respect to item description, quality, quantity, condition of the product and price of the item. If any variance in quality is noticed, the particular item to be kept aside and not inwarded. The supplier is notified of the variance and asked to pick it up within 15 days.( Refer Annexure)
After each item has been checked the goods inwarded can be saved and the system generates a GRN. A printout of the GRN needs to be taken and attached with the set of documents pertaining to the consignment.
The consignment is to be recorded in the inward register maintained by the instore Warehouse personnel (Refer to Annexure 1).
Everyday the inwards register is handed to the security personnel to record the GRN number in the security register against the particular consignment.
The entire set of documents is forwarded by the warehouse staff to the accounts department for effecting payment. A record of each set of documents passed onto accounts is to be maintained in a register at the store.
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Inwarding of SIS merchandise
Basic Principle governing the process: SIS merchandise is the responsibility of the SIS vendor. This inventory is
neither inwarded nor outwarded in the PRIL SAP system.
However, a check and record is to be maintained on the movement of goods by the security personnel.
Inwarding of SIS merchandise and recording of the same
On arrival of SIS merchandise the security personnel is notified of the same. Security staffs to examine the merchandise to ensure the items pertain to what the particular vendor is dealing in, take a count of the quantity being inwarded and allow it to enter the store after verification from the warehouse manager.
The inward is to be recorded in the security register where the vendor details are captured, merchandise description and quantity are noted.
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Outwarding of Big Bazaar Merchandise
Basic Principle governing the process: For goods to be outwarded, an Outward Purchase Order (P.O.) listing the
items needs to be created by the store.
Each item is to be entered against this P.O. and outwarded from the system
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Outwarding of Merchandise to Warehouse
Approval of items to be out warded
It is of utmost important that, before outwarding, permission to be sought from the store manager, zonal supply chain team and the respective category team.
Preparation of the Outward P.O. A P.O. listing each SKU and quantity to be outwarded is to be prepared
The P.O. to be signed by the warehouse manager and the store manager.
Scanning and Outwarding of items to PRIL Warehouse/Delivery Centre
The items to be outwarded are collected, checked against the underlying P.O. and packed for dispatch
The outwarded items are saved as an outward GRN, of which three copies are printed.
Warehouse personnel to supervise loading onto the delivery vehicle according to the GRN. The security personnel to simultaneously
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maintain a count of the cartons being loaded on the vehicle and tally the same with the number of cartons as per the GRN.
Security personnel to affix a seal containing store’s stamp & security’s signature on the delivery vehicle.
Warehouse personnel to record the Outward P.O. and GRN details, merchandise details and quantity in their outward register (Refer to Annexure 4).
Security personnel to record the outward in their security inward outward register and create a gate pass for the consignment (Refer to Annexure 2). The GRN and gate pass are stamped with an outward stamp by the security. The outward number according to the security register, number of cartons and date are to be recorded on the stamp.
The P.O., two copies of the GRN and the gate pass are to be handed over to the delivery vehicle staff.
The other copy of the GRN and gate pass is handed back to the warehouse personnel for filing of the same.
When the consignment reaches the warehouse/D.C., the respective personnel to acknowledge the receipt of the goods on one copy of the GRN, which needs to be then sent back to the dispatching store for their records.
Outwarding of goods directly to vendor
Outwarding of goods to vendors can take place directly without having to create a base P.O.
The items to be outwarded are entered in the system and 3 copies of an Outward Goods Receipt Note are prepared.
When the vendor arrives, the merchandise is handed over to the vendor. Security personnel to maintain a count of the number of cartons being loaded on the vendor’s vehicle. This count is tallied with the GRN to ensure that no
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extra merchandise gets outwarded.
The vendor’s delivery personnel acknowledge receipt of the items on the GRN.
Warehouse personnel to record the GRN details, merchandise details and quantity in their outward register
Security personnel to record the outward in their security register (Refer to Annexure 2). A gate pass is generated to enable the merchandise to exit the store premises.
Security personnel to put an outward stamp on the GRN and gate pass. On the outward stamp, the outward number (according to the security register), number of cartons and date to be recorded.
Security personnel to handover one copy of the GRN and gate pass to the vendor’s delivery personnel and the other copy to the warehouse personnel.
Warehouse personnel in turn to file one GRN for records and the other set to be passed onto accounts for recording. Papers forwarded to accounts are to be recorded in a register maintained for this purpose by the store commercial.
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Outwarding of SIS merchandise
Merchandise to be outwarded is checked by the security personnel to ensure items not belonging to the vendor are NOT taken out of the store. If all items are in order security personnel to take a count of the items being outwarded and allow it to exit the store after verification by the store manager.
A record is made in the security register capturing the vendor details, consignment details and quantity being outwarded.
Inter-store Stock Transfers
Inter Store Stock Transfer refers to transferring of goods from one store to another with in the octroi limits. The reasons for inter stock transfer could be:
Fluctuating customer demand Category initiated – for newly open stores.
The steps involved in Inter Store Stock Transfer are as follows:
Having identified the no of merchandise required for particular category, it is the duty of DM to send the requisition of required merchandise to zonal front end category.
Front End Category then checks the status of all the stores within the octroi limits and raises the Stock Transfer Order (STO) against sent requisition.
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Front End Category then sends the 10 digit STO number by mail to the sending store.
Having received the STO number from Front End Category, particular category’s DM accesses the STO on SAP for full details.
On the basis of STO raised by Front End Category, DM sends the required number of merchandise to the store warehouse.
Store warehouse makes the physical count of the goods and scans the each merchandise in the system.
Packing of goods is done and STN (Stock Transfer Note) is generated by the store warehouse.
The 3 copies of STN is issued:
One copy stays with the sending store One copy for receiving store One copy is an acknowledgement for the sending store
Against the STN, a Gate Pass must be issued by the sending store.
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Store copy of STN and gate pass must be signed by the transporter for the number of merchandise he will be delivering to the other store.
Records for the gate pass must be maintained by the store security personnel.
An entry must be made in the Outward Register, which is maintained at the Security.
How to keep stocks in ware house for convenient of movement towards floor when required :
Merchandise NOT to be stacked on top of each other Adequate Racking capacity (e.g. slotted angle steel racks) Warehouse to have adequate number of bins
Bins can be used for storing fragile merchandise Bins with fragile merchandise can be stacked on top of each other without
any load on the merchandise
Storing of Merchandise
Goods to be placed on top of each other only to the extent that merchandise does not get damaged
Fragile merchandise to be stored ensuring easy accessibility and no load on the merchandise
Goods to be stored in a manner that ensures retrieval of the merchandise as per First In First Out (FIFO) method
Steps to be followed while inwarding & ware house space usage for stock holding :
When goods arrive in cartons, each carton to have the date of inwards recorded on it, using marker pen
Cartons can be directly stored in the racks or its content emptied into bins Fragile items like toys, crockery, glassware etc. to be stored in bins
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FB items like wafers, biscuits, detergent packets which can tear & other items which can break, to be stored in bins
Heavy merchandise to be stored in lower racks Trouble-free storage and retrieval or merchandise
Warehouse space to be segregated in different section for easy storage and retrieval of merchandise
Merchandise of similar category to be stored together
Example
Big Bazaar - Apparel in one area, electronic in another etc. Food Bazaar – Personal product items separated from
soaps and detergents, consumable in a different area
Steps to be followed while inwarding & storing merchandise
Cartons and/or bins to be placed in racks in a sequential order From Left to Right From Top to Bottom From Bottom to Up
(Any order can be followed) Order is to ensure that items can be located according to FIFO
method
FIFO Method
Ensure that the goods do not lie in the system for longer duration Goods which arrive first should be brought first on the Store Floor
FIFO method Mark every carton to identify “when” the carton was inwarded Stack merchandise in a sequential order (Left to right …. ) When moving the merchandise to the Shelves on the floor ensure
that old stock doesn’t get stuck in the system
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PAPER WORK TRACKING
Food Bazaar Inward Register Big Bazaar Inward Register Food Bazaar Outward Register Big Bazaar Outward Register Vendor Return Register Vendor Scheduling Register Free gift Register Barcode Register Garbage Register Scrap Register Damage Register(where stock is sent back to the CDC) Floor Discrepancy Register Vehicles damage received from floor to warehouse damage register. Stock Transfer Notice copy attached with Goods Received Note print copy.
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CONCLUSION
The market has skyrocketed in the last 20 years. The boomer generation, with a higher average income, will pay higher prices for their needs. When you consider the grandparents and other relatives on top of that, you will see that a very healthy group of consumers waits to compensate the serious retail entrepreneur. Conditions are better than ever in selling merchandise for babies and children, so naturally a plethora of specialty stores have come to existence that are either devoted to juvenile merchandise or have a section of their store for such products.
Unfortunately, many retailers do not profit accordingly because they fail to merchandise correctly. The major retail chains have a strong hold on this market, so it is important to know how to compete. The concentration of these major stores is focused on lower-end products, so sellers with a smaller store will need to offer something different. You cannot compete with the big names in low-end merchandise because they can always undercut your price. The safest inventories to carry are medium to high-end products. Keeping the inventory small but high in quality is the best-case scenario. You will be surprised at how customers are willing to pay more for superior, carefully selected products.
DELHI/NCR have huge potential for organized retail to cultivate. And within coming years to come store will be given concentration and treated with special assurances.
Strict challenges will be coming ahead in order to compete in these circumstances, these type of cities are coming to be the next battleground for retailers after the metro stagnation.
However to emerge as winners a whole lot of concentration should be kept on customers but of course keeping” profitability in minds”
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LIST OF REFERENCES
Bruce, Margaret; Daly, Lucy,” Buyer behaviour for fast fashion” Journal of Fashion
Marketing and Management, Volume 10, Number 3, 2006, pp. 329- 344.
Barnes, Liz; Lea-Greenwood, Gaynor ,” Fast fashioning the supply chain: shaping
the research agenda“, Journal of Fashion Marketing and Management, Volume 10,
No. 3, 2006, pp. 259-271.
Dale B Achabal et.al. ”A Decision Support System for Vendor Management
Inventory”, Journal of Retailing Vol. 76, No.4, pp 407-413.
Sheridan, Mandy; Moore, Christopher; Nobbs, Karinna,”Fast fashion requires fast
marketing: The role of category management in fast fashion positioning “, Journal of
Fashion Marketing and Management, Volume 10, Number 3, 2006, pp. 301-315.
Tyler, David; Heeley, Jo; Bhamra, Tracy, “Supply chain influences on new product
development in fashion clothing“, Journal of Fashion Marketing and Management,
Volume 10, No. 3, 2006, pp. 316-328.
http://www.regoverningmarkets.org/en/news/
news/future-group-to-hive-off-big-bazaar/260540/
www.futuregroup.in
www.retailmantra.com
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