Professional Documents
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MANAGEMENT AT
By SARANG S. WADYALKAR
PGDM OPERATIONS(2008-10)
BITM
ROLL NO. TM-08164
INTRODUCTION TO RETAIL
01/15/10
It is very important
Project inbyaSarang
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retail business where 8
Enter the details of stocks received in the Goods Inward Register (GIR)
Once the vehicle is offloaded, tally the shipping manifest or STM, RECEIVING
BAY to acknowledge the Gate Pass confirming the total Number of
Cartons/crates received.
Ensure that cartons/crates marked as Fragile, Handle with Care, should be
offloaded separately and carefully, if there are any.
In case any item is found to be broken / damaged, write a remark on both
Shipping Manifest/STM copies clearly mentioning the total number of
pieces received in damaged condition
Take signature of DC representative on the Shipping Manifest/STM, as a proof
of pieces received in damaged condition
Put the Store receipt stamp clearly mentioning the date of receipt at Store.
In case of discrepancies found between SHIPPING MANIFEST quantity and
Physical quantity received clearly mention the number of pieces received
short / excess on the SHIPPING MANIFEST copy.
Hand over one SHIPPING MANIFEST copy to DC representative, as an
acknowledgement of receipt of stocks.
Update stocks in MMS on the same day of receipt of the stocks.
Incase of short receipt, RECEIVING BAY receives only those Quantities, which
are physically received.
Excess stock or wrong stock received can either be returned or accepted
based on fresh transfer
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to be generated by DC, as a result of interaction 10
Project Presentation by Sarang Wadyalkar
between Receiving Bay and DC.
Direct Store Deliveries (DSD)
Applicable for items that are delivered directly to the store. Mainly
to Perishables like F&V, Milk, Soft Drinks, Eggs, Bread, and Ice-
creams etc.
The vendor will come to the Receiving Bay with stocks as informed
by the Buyer
The Receiving Bay enters in the Goods Inwards Register basis the
Vendor’s Invoice.
Piece count to ascertain correctness of the Invoice.
All damages and reject ITEMS will be removed from the lot and not
accepted into MMS.
The Service Manager will take stocks on the floor. He would replace
expired/old stocks from the floor with fresh stocks while ensuring
that the MODEL STOCK qty is not exceeded.
The Floor Manager will fill up the DELIVERY NOTE and mention the
qty of incoming and outgoing stocks in duplicate.
On the basis of the Delivery Note Receiving Bay will follow the Batch
creation process for receiving of differential stocks (Incoming
stocks minus Outgoing stocks)
A Receivers Confirmation Report will be printed and a copy given to
the vendor
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GENERAL RECEIVING
Where Vendor does Direct Deliveries based on Purchase Order
Receive the stocks directly from Vendor or through transporter along with
invoice and Packing slip.
Check for PO No. on invoice and one invoice carries only one PO reference.
Enter into Store GOODS INWARD REGISTER and accept the delivery.
A piece count to ensure correctness and remove damages.
Take a print out of PO, if required and check for PO location, items and
quantity ordered.
RECEIVING dept is provided with serially numbered QDN (Quantity difference
Note) book in quadruplicate, Original copy of QDN has to be given to
vendor, Second copy to DC, and third copy to HO Accounts and Fourth copy
to be kept at Store for future reference in the QDN FILE at Receiving Bay.
Collect the Vendor acknowledgement on the QDNs made for Local Vendors.
Make QDN giving reason for differences and pack and return the goods back
to vendor with one copy of QDN clearly giving reason for QDN.
For Damaged Stocks, send a letter to the Vendor along with QDN Copy within
48hrs. The vendor will be required to take away this stocks within 2 days
To speed up the Receiving process, ensure the following:-
Therefore to replicate its well thought mission in retail sector into reality, the
company must go ahead with the bigger plans to cater the needs of huge
consumer base by partnering with the best suitable supply chain & logistics
solution provider keeping in mind that it’s DC has to distribute the
products to all it’s stores across all major cities in India.
Looking at its current warehouse space (about 10000 sq ft+2500sqft at
receiving bay+1200sqft for frozen items) here at Vashi store, it seems that
the warehouse is doing a herculean task as it is fulfilling the needs of the
store in terms of moving the inventory to the floor but the warehouse may
fall short in keeping up with the future demands as it can be seen that it
lacks flexibility to grow in size to accommodate more products in future.
The retail industry needs
01/15/10 to get organized
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government needs to be lobbied with, to help create a conducive
RECOMMENDATIONS &
SUGGESTIONS
WAREHOUSE- CROSS DOCKING
MAKING THE RIGHT CHOICES
Under the right conditions, cross dock or direct shipping merchandise to retail
outlets can save space in your warehouse, and reduce inventory investment. It can also
reduce traditional inventory methods.
Cross dock shipping refers to immediately shipping the products you receive at
your warehouse without putting them away or storing them.
THE BENEFITS
No storage space is required for products that are cross docked. The only
warehouse space they require is a staging area.
Since no inventory is required, it is possible to eliminate all inventory costs for
these items.
However, it is sometimes helpful to carry a small inventory in case of unforeseen
emergencies. Usually, this should not be more than one week's requirements -
considerably less than inventory in storage for most operations.
THE RISKS
The dangers of these systems are that they can make it more difficult to
maintain consistent and reliable customer service, and they can increase costs if they are
not carefully planned.
e.g. if you distribute to your own stores, it is important to avoid trading warehouse
space for more costly retail space by over-ordering to assure item availability. The staging
area for a poorly planned cross dock operation may take more warehouse space than a
picking area for the same items.
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You also need to weigh theProject Presentation
savings by Sarang Wadyalkar
in the warehouse against the increased costs of ordering19
RECOMMENDATIONS contd…..
PRODUCT CONSIDERATION
Cross dock and direct ship operations usually work best when there
is a consistent demand for the item. Demand for the item should
be easily predictable, either to the retail manager, or to a central
ordering specialist.
The more erratic the movement of an item, the more likely that
forecasting errors will be made and stock outs will occur.
Some important item characteristics are special handling
requirements, size, and perishability. Costs of handling the
specific items should be compared for each of the systems.
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RECOMMENDATIONS contd …..
Which products should be cross docked?
Highly perishable items (Vegetables & Fruits)
Frozen items (Meat, Ice-Creams, Milk Products)
High profit margin items
Toys
CD Rom Games
High Tech appliances
High value-high pilferage items
Mobile phones
IPods
Watches
Low value-high pilferage items
Grocery
Chocolates
Dry Fruits
Perfumes
All the fastest moving items in this category
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Further compression of selected items for cross-
docking…
HIGH LEVELS OF POPULARITY CUBE MOVEMENT
PREDICTABILITY
Choose suppliers that consistently
provide the correct quantity of the correct
product at the precise time. Prerequisites :
Configure products for efficient handling
through the next point in the supply chain;
Consistently comply with customer
mandates for labeling, ticketing, packaging,
and product quality;
Effectively and efficiently share information
with their customers.
Startup costs for their cross-dock initiatives are insignificant, but the
savings and benefits are considerable. It can improve inventory
turns up to two times.
For a complex, capital-intensive cross dock, it’s best to evaluate the
effect on each SKU’s profitability. Where suppliers must take on
additional responsibilities, gain-sharing—the practice of sharing
projected savings—can be initiated with suppliers that could
make cross docking in your facility possible.
The old axiom, “You can’t improve what you don’t measure”, still is true in
warehouse operations. The simple act of measuring operating metrics and reporting the
results to your employees will result in an improvement .
Why?
Most employees just want to know how they’re doing. By setting expectations
and then telling everyone how they’re measuring up, you can improve overall productivity.