Research Report

ON
Supply Chain management And Store
Operation In
Pantaloon Retail India Pvt. Ltd
Submitted for the partial fulfillment of the requirement for the
award
Of
POST GRADUATE DIPLOMA I MAAGEMET
(2008-2010)
SUBMITTED BY:-
PANKAJ KUMAR
Roll No.: HR08038
PGDM
UNDER THE GUIDENCE !:-
PR!. PRAH"AD PRASAD
1
Students Declaration
I hereby certify that the survey, data collection and analysis work related to
research report on supply chain management and store operation


PANKAJ KUMAR
r.no!"
p.g.d.m #
th
$em
2
ACKNO%L&'(&M&N)
Any work of this magnitude requires inputs, efforts and
encouragement of people from all sides. In completing my project
report, I have been fortunate enough to get active and kind
cooperation from many without whom my endeavors would not
have been a success.
3
4
Inde*

+ Student de,laration
- A,.no/ledgement
! &*e,utive Summary
# O01e,tive
2 Retail In India
3 Pantaloon Pro4ile
3.+ 5uture (roup
3.- Company Journey
3.! A/arded 6 Re,ognition
7 5undamental$ o4 SCM
" Revie/ o4 Literature
8 Pro,e$$ o4 9andling Inventory
8.+ In/ard Pro,e$$ in %arehou$e
8.- %arehou$e Storage Pro,e$$
8.! Out/ard Pro,e$$ in %arehou$e
8.# Out/ard o4 'amage $to,. 5rom %arehou$e
8.2 Store In/ard Pro,e$$
8.3 Storage Pro,e$$ in Store$
5
8.7 Store Out /arding Pro,e$$
+: Shortage$ 6 'amage$ o4 Inventory
+:.+ Shortage$ 6 'amage$ in the %arehou$e
+:.- Shortage 6 'amage$ in Store
++ Con,lu$ion
+- Re4eren,e$
6
&;&CU)I<& SUMMAR=
I have undertaken my internship with Supply Chain epartment of
!antaloon "etail #India$ %imited a unit of &uture 'roup. As supply
chain as a whole is a very (ig Area for cover in just )* days so I
select a sub area of supply chain that is inventory management
and with the help of some company people I select a topic that is
Shortage and amages in inventory.

+oday stock out is the major problem for the "etail Industry and
as Indian organi,ed retail industry is very new and India is a very
diverse country different people like different things, they have
different culture different preferences so the stock out problem is
major issue. +he second part of my problem is amages-wastages
of inventory which is more important then shortages because
when any inventory is damaged then there is both financial loss
either for vendor or to company and also shortage for that
damaged inventory in the store.
I divided my project into two parts of one month each. In the first
part of my project I visited the store warehouse of company one
is of noida store warehouse and the other one is that of store
operation.

I try to understand there way of working, reasons of shortages

and damages in the warehouse and in store operation I try to
under stand the way of working in store. In the second part I
visited different stores of company in the elhi and .oida region
and the way of working of SC/ department, I am also see what
are the different reasons for the shortage and damages of
merchandise at store level which is very different from
warehouse.
After practically working in warehouse and I stores I reali,ed there
are some problems due to which the problems of shortages and
damages occurs and I try to give some recommendation which
may be helpful in getting rid from these problems. +hese problem
and recommendations I discussed in this report.
!
O>J&C)I<&S
+his internship project is only of two months so main thing before
selecting any project we must consider our area of interest so
that in these two months our learning is more interesting and we
learn more. As my interest is in the supply chain but it is hard to
cover the whole area and that is the reason I select shortage and
damages of inventory in supply chain.
I try to understand the whole process of inventory management in
both warehouse and in stores. /y two major objectives during this
entire project, one is learning and the other is to find the gaps in
the way of working of the employee of supply chain department
due to which these problems occurs and give some
recommendation, as per my knowledge, for bridging these gaps
so that system is more efficient in fulfilling customer demands
with more profit.
"

R&)AIL IN IN'IA
1#
R&)AIL IN IN'IA
+he retail sector in India is highly fragmented and organi,ed retail
in the country is at a very nascent stage. +here are about 01
million retail outlets spread across India, earning it the epithet of
a 2nation of shopkeepers3 /ore than 4*5 of these 01 million
outlets are run by small family businesses which use only
household labour. +raditionally, small store (kirana) retailing has
been one of the easiest ways to generate self6employment, as it
requires limited investment in land, capital and labour.
Consequently, India has one of the highest retail densities in the
world at )5 #01 million retail shops for about 1*7 million
households$.India8s peers, such as China and (ra,il, took 0*609
years to raise the share of their organi,ed retail sectors from 95
when they began, to 1*5 and :45 respectively. India too is
11
moving towards growth and maturity in the retail sector at a fast
pace
Comparative !enetration of ;rgani,ed /arket<

12
In the current scenario clothing and accessories accounts for :75
of the total organi,ed retail in India. &ollowing it &ood and 'rocery
with the market share of 005. &ootwear Industry and Consumer
electronics are on :rd position in the percentage of organi,ed
share which reads as 75 for both of them.
=
13
IN'IA R&)AIL? -::3 (at current prices)
Company pro4ile
14
PAN)ALOON@S PRO5IL&
!antaloon "etail #India$ %imited, is India8s leading retailer that
operates multiple retail formats in both the value and lifestyle
segment of the Indian consumer market. >eadquartered in
/umbai #(ombay$, the company operates over 9 million square
feet of retail space, has over :9* stores across ?* cities in India
and employs over 04,*** people. +he company8s leading formats
include !antaloons, a chain of fashion outlets, (ig (a,aar, a
uniquely Indian hypermarket chain, &ood (a,aar, a supermarket
chain. A subsidiary company, >ome Solutions "etail #India$
%imited, operates >ome +own, a large6format home solutions
store, Collection I, selling home furniture products and @6Aone
focused on catering to the consumer electronics segment.
!antaloon "etail was recently awarded the International "etailer
of the Bear 1**C by the DS6based .ational "etail &ederation #."&$
and the @merging /arket "etailer of the Bear 1**C at the Eorld
"etail Congress held in (arcelona. !antaloon "etail is the flagship
company of &uture 'roup, a business group catering to the entire
Indian consumption space.
15
5uture (roup
&uture 'roup is India8s leading business group that caters to the
entire Indian
consumption space. %ed by /r. Fishore (iyani, the &uture 'roup
operates through siG verticals<
&uture "etail
&uture Capital
&uture (rands
&uture Space
&uture /edia
&uture %ogistics.
Apart from !antaloon "etail, the group8s presence in the retail
space is complemented by group companies, Indus %eague
Clothing, which owns leading apparel brands like Indigo .ation,
Scalars and Drban Boga, and 'alaGy @ntertainment %imited that
operates (owling Co, Sports (ar, &01: and (rew (ar.
&uture Capital >oldings, the group8s financial arm, focuses on
asset management and consumer credit. It manages assets worth
16
over H0 billion that are being invested in developing retail real
estate and consumer6related brands and hotels. +he group has
launched a consumer credit and financial supermarket format,
&uture /oney and soon plans to offer insurance products through
a joint venture with Italian insurance major, 'enerally.
5uture (roup Mani4e$to
2&uture3 I the word which signifies optimism, growth,
achievement, strength, beauty, rewards and perfection. &uture
encourages us to eGplore areas yet uneGplored, write rules yet
unwrittenJ create new opportunities and new successes. +o strive
for a glorious future brings to us our strength, our ability to learn,
unlearn and re6learn our ability to evolve. Ee, in &uture 'roup,
will not wait for the &uture to unfold itself but create future
scenarios in the consumer space and facilitate consumption
because consumption is development. +hereby, we will effect
socio6economic development for our customers, employees,
shareholders, associates and partners.
;ur customers will not just get what they need, but also get them
where, how and when they need.
Ee will not just post satisfactory results, we will write success
stories.
1
Ee will not just operate efficiently in the Indian economy, we will
evolve it.
Ee will not just spot trendsJ we will set trends by marrying our
understanding of the Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this
that will help us succeed in the &uture. Ee shall keep relearning.
And in this process, do just one thing.

1!
Rewrite Rules. Retain Values.

(roup <i$ion
&uture 'roup shall deliver @verything, @verywhere, @very time for
@very Indian Consumer in the most profitable manner.
(roup Mi$$ion
Ee share the vision and belief that our customers and
stakeholders shall be served only by creating and eGecuting
future scenarios in the consumption space leading to economic
development.
Ee will be the trendsetters in evolving delivery formats, creating
retail realty, making consumption affordable for all customer
segments I for classes and for masses. Ee shall infuse Indian
brands with confidence and renewed ambition. Ee shall be
efficient, cost6 conscious and committed to quality in whatever we
do. Ee shall ensure that our positive attitude, sincerity, humility
and united determination shall be the driving force to make us
successful.
1"
Core <alue$
Indianness< confidence in ourselves.
%eadership< to be a leader, both in thought and business.
"espect K >umility< to respect every individual and be humble
in our conduct.
Introspection< leading to purposeful thinking.
;penness< to be open and receptive to new ideas, knowledge
and information.
Laluing and .urturing "elationships< to build long term
relationships.
Simplicity K !ositivism< Simplicity and positivist in our thought,
business and
action.
Adaptability< to be fleGible and adaptable, to meet challenges.
&low< to respect and understand the universal laws of nature.
2#
Company Journey
+8"7? Company incorporated as /anse Eear !rivate %imited.
%aunch of !antaloons trouser, India8s first formal trouser brand.
+88+? %aunch of (A"@, the Indian jeans brand.
+88-? Initial public offer #I!;$ was made in the month of /ay.
+88#? +he !antaloon Shoppe I eGclusive menswear store in
franchisee format launched across the nation. +he company
starts the distribution of branded garments through multi brand
retail outlets across the nation.
+882? Mohn /iller I &ormal shirt brand launched.
21
+887? !antaloons I India8s family store launched in Folkata.
-::+? (ig (a,aar, NIs se sasta aur accha kahi nahin8 6 India8s first
hypermarket chain launched.
-::-? &ood (a,aar, the supermarket chain is launched.
-::#? Central I NShop, @at, Celebrate in the >eart of ;ur City8 6
India8s first seamless mall is launched in (angalore.
-::2? &ashion Station 6 the popular fashion chain is launched
-::3? &uture Capital >oldings, the company8s financial arm
launches real estate funds Fshitij and >ori,on and private equity
fund Indivision. !lans forays into insurance and consumer credit.
/ultiple retail formats including Collection I, &urniture (a,aar,
Shoe &actory, @6Aone, epot and futureba,aar.com are launched
across the nation. 'roup enters into joint venture agreements
with @+A/ 'roup and 'enerally.
-::7? "etail format >ome +own is launched in .oida.
22
Partner Companie$
9ome Solution$ Retail AIndiaB Ltd.
>ome Solutions "etail #India$ %td. #>S"I%$ leads the groups foray
in the home improvement and consumer electronics retailing
segment. It caters to home management requirements and
products, including furnishings and teGtiles, furniture, consumer
electronics, home electronics and home services. It operates
retail formats like >ome +own, &urniture (a,aar, Collection I, @6
Aone, @lectronics (a,aar and 'ot It.
5uture Capital 9olding$
&uture Capital is the financial arm of the group and is involved in
asset management #both private equity and real estate funds$
with plans to get into other financial services including insurance,
credit and other consumer related financial services. Its associate
23
companies are Fshitij Investment Advisory Co. %td., Indivision
Investment Advisers %td., and Ambit Investment Advisory Co. %td.
Indu$ League Clothing Ltd.
+he group owns a majority stake in Indus %eague Clothing %td.,
one of the leading apparel manufacturers and marketers in India.
Some of its leading brands include Indigo .ation, Scalars, Drbana,
Drban Boga and Mealous.
(ala*y &ntertainment Corporate Ltd.
+he group owns a stake in 'alaGy @ntertainment Corporate %td.
that operates chains like (owling Company, Sports (ar and (rew
(ar.
A/ard$ 6 Re,ognition$
-::7
National Retail 5ederation A/ard$
International "etailer for the Bear 1**C I !antaloon "etail #India$
%td
%orld Retail Congre$$ A/ard$
24
@merging /arket "etailer of the Bear 1**C I !antaloon "etail
#India$ %td
9e/itt >e$t &mployer$ -::7
(est @mployers in India #"ank 0?th$ I !antaloon "etail #India$ %td
PC %orld Indian %e0$ite A/ard$
(est Indian Eebsite In +he Shopping Category 6
&utureba,aar.com
Reader@$ 'ige$t )ru$ted >rand$ Platinum
A/ard$
+rusted (rands !latinum Award #Supermarket Category$ I (ig
(a,aar
-::3
Retail A$ia Pa,i4i, )op 2:: A/ard$
25
Asia !acific (est of the (est "etailers I !antaloon "etail #India$
%td
(est "etailer in India I !antaloon "etail #India$ %td
A$ia money A/ard$
(est /anaged Company in India #/id6cap$ I !antaloon retail
#India$ %td.
&rn$t 6 =oung &ntrepreneur o4 the =ear
A/ard
@rnst K Boung @ntrepreneur of the Bear #Services$ I Fishore
(iyani
CN>C Indian >u$ine$$ Leader$ A/ard$
+he &irst 'eneration @ntrepreneur of the Bear I Fishore (iyani
26
Image$ Retail A/ard$
(est Lalue "etail Store I (ig (a,aar
(est "etail estination I (ig (a,aar
(est &ood K 'rocery Store I &ood (a,aar
"etail &ace of the Bear I Fishore (iyani
"eaders8 igest Awards
!latinum +rusted (rand Award 6 (ig (a,aar
C.(C Awaa, Consumer Awards
/ost !referred %arge &ood K 'rocery Supermarket I (ig (a,aar
"eid K +aylor Awards for "etail @Gcellence
"etail @ntrepreneur of the Bear I Fishore (iyani
2
Line o4 >u$ine$$
&tailing? &utureba,aar.com.
5ood? >re/ (ar, CafO (ollywood, Chamosa, Sports (ar, &ood
(a,aar.
5a$hion? A%%, (ig (a,aar, Central, &ashion Station, 'ini K Mony,
!antaloons, %ee
Cooper.
9ome 6 &le,troni,$? >ome +own, &urniture (a,aar, @lectronics
(a,aar, @6,one,
Collection I.
)ele,om 6 I)? 'en /, / ba,aar, /6!ort.
(eneral Mer,handi$e? Central, (rand &actory, &ashion Station,
Shoe &actory,
!antaloons.
Lei$ure 6 &ntertainment? (owling Co, & 01:.
%ellne$$ 6 >eauty? >ealth Lillage, Star Sitara, +ulsi, +urmeric.
>oo.$ 6 Mu$i,? epot.
2!
=
5undamental$ o4
SUPPL= C9AIN MANA(&M&N)
2"
SUPPL= C9AIN MANA(&M&N)
Supply Chain /anagement #SC/$ is essentially integrating
suppliers to the end consumers and emphasis the need for
collaboration to optimi,e the whole system. +he basic aim of any
SC/ function is to make the organi,ation more agile and nimble
footed to respond to drastically changing consumer preferences
by capturing the data of material flow at all levels of the value
chain.
"etailers today face many challenges because of greater product
variety, shorter product life cycles cause8s greater fluctuations in
demand and calls for high responsiveness in supply chain and due
to which need of shorter lead time continues. In retail
transactions must be smooth, timely and accurate. Ehen one is
dealing with a compleG function such as retail it is very essential
that we have a strong supply chain for better responsiveness and
cost effectiveness.
An effective supply chain management system can provide a :)*
degree feedback to the retailer as well as to the manufacturer
about the popularity and complaints of any particular product.
3#
!rovide valuable insights on inventory and guidelines on
merchandise allocation. It also increases visibility of stock sales
and consumer demand throughout the supply chain. &acilitates
collaboration and communication for improving relationship with
supplier.
As !antaloon "etail believes in value retailing so it is very
essential that our supply chain is very strong because we only
make money when we reduced our cost and supply chain is the
only area for maGimum cost reduction either it is purchase in bulk
or it is better
logistics we only win if we are able to decrease our cost and
response time.
An efficient supply chain is working something like that it is given
in the above figure<

31
+here are 9 essential areas for the success of any retailer
in the supply chain and out of these : are logistical
functions. +hese are<
Earehouse #&acility$
Inventory /anagement
+ransportation
Information &low
+echnology
)hi$ I$ )he Pro,e$$ O4 Pantaloon Retail India
Ltd

32

$antaloons %etail India &td'
(ate)ory
&o)istics *perations
33
%arehou$e
Earehouse is the location to or from which the inventory is
transported. Earehouses are the key driver of supply chain
performance in terms of responsiveness and efficiency. (efore
deciding the location of Earehouses we must consider the
following points<
%ocation of our stores
"ent of the location
&ormat of our retailing
.ow a days warehouse is treated as switching facilities rather
than storage place and companies try to move stock from the
warehouse as soon as possible to reduce the inventory handling
cost, for higher inventory turnover and for shorter cycle time It is
a major cost center, many customer problem are the direct result
of improper warehousing management.
34
Ma1or de,i$ion o4 /arehou$e i$ a$ 4ollo/$<6
&acilities in the warehouse, Earehouse layout, esign of building,
;wnership of the warehouse, Connectivity.
Earehouse8s performance is judged by customer8s
satisfaction and by lower cost of operation.
%arehou$ing 5un,tion
/aterial Storage &unction, /aterial >andling &unction,
Information >andling &unction.
Material $torage i$ reCuired to a,,ommodate the
4ollo/ing 4un,tion$?
>olding, Consolidation, (reak (ulk, !acking, /iGing.
Material handling 4un,tion
%oading K unloading, /aterial /ovement, ;rder filing.
35
In4ormation handling 4un,tion
+. 'oods inward, Inspection K auditing, 'oods outward, @Gcess
Stock , Earehouse
- . @Gpenses, +ransit damage K (reakage. !antaloons try to
locate its warehouses very near to the stores as we see there
are many warehouses in the .C" area like to cover elhi stores
there is a warehouse in Ea,irpur, for .oida and 'ha,iabad
regions stores company started a new warehouse in adri which
is very near from both the cities and for 'urgaon there is also a
warehouse so company try to decrease its response time for
better customer service and as !antaloon "etail concentrate more
on value retailing so it is more important that company focus on
economies on scale and purchase in bulk and this requires more
warehouses.
: .+he function of providing warehouses is outsourced to Indo
Arya which is one of the best companies in India in the field of
logistics. In some places like in case of >S"I% warehouse in adri
!antaloon outsource the whole logistics function to Indo Arya.
adri warehouse of the company is provided by Indo Arya and it
is a CEC warehouse. Connectivity is very good from this
warehouse because it is located on the '+ road and it takes
hardly 0 hour in transporting stock to the .oida and 'ha,iabad
36
stores. +here is plenty of space inside the E> for parking and
movement of vehicles. E> it divided into : sections of nearly
:*,*** sq. ft. each out of which 0 section handling the inventory
of >S"I% format and hold furniture and home improvement
merchandise, 1nd section carry general merchandise and sanitary
items and :rd one is for pantaloons. In case of Ea,irpur
warehouse there are : floors on the ground floor unloading and
loading is done.
Inventory Management
Inventory eGists in the Supply Chain (ecause of a /ismatch
between Supply and emand. Inventory is the major source of
cost in the Supply Chain. +he figure given below shows how the
effective inventory management is work. +his figure shows that
there must be some inventory level we must manage for
efficiently fulfill the demand of customers and we must out the
inventory in time so that we are able to send the stock in stores in
time and the damage stock is also out from the E> so that we
maintain a good inventory level.
3
)ran$portation
+ransportation is defined as the physical flow of material and
finished goods from point of origin to point of use to meet
customer8s need at a profit. It is essentially a planning process
and an information activity so an integrative process that
optimi,es the flow of material and supplies through the
organi,ation and its operations to the customer.
It is of critical importance to the organi,ation how it delivers
products K services to the customer, whether the product is
tangible or intangible.
3!
@ffective K efficient !hysical movement of the tangible product
will speak of intangible services associated with the product and
the organi,ation which is delivering it.
In Case of intangible product, the delivery of tangibles at the right
place K right time will speak about its quality. India spends nearly
015 of its '! on logistics.
India spent nearly H 9* billion to move material from one use to
another.
Any good transport service is that which provide<
"eliable and consistent delivery performance
&reight economy
/inimum product damage
!antaloon outsourced its transportation services to the third party
which is Indo Arya. So in this case all damages all responsibility is
of transportation service. Company must provide the required
vehicle on time when E> requires it.
In4ormation 5lo/
Information serves as the connection between various stages of a
supply chain, allowing them to coordinate and maGimi,e total
supply chain profitability. It is basically information based activity
of inventory movement across the supply chain. >ence role of
information system plays a vital role in delivering superior
3"
customer service +his function is required to facilitate the
following information needs<
;rder "egistration
;rder checking K editing
;rder processing
Coordination means to integrate the total supply chain of the
company with informational needs as to time, quantity, value e.g.
%ead time, rate of consumption, delivery schedule K price of the
material, +ransportation time K cost etc.
&low of information is very essential to know the eGact
requirement of stores, to know consumers preferences, to know
the inventory level in store and in warehouses.
)e,hnology
4#
(etter flow of information is only possible with the use of latest
technology and that is the reason because of which companies
invest so much on new technology like "&I, @"! software etc.
!antaloon is also understand the importance of information and
technology and so company implement @"! software for making
supply chain better. !antaloons using SA! which is one of the
most successful @"!. Eith this software sharing of information is
much easier because we can see how much inventory is available
in the E> and placing S+; according to that. /aking S+;, !ick list
and '". is also very easy and fast with the help of SA!.
!antaloon also implements "&I in its +arapur warehouse on
some categories.
41
PROC&SS
IN%AR' PROC&SS IN
%AR&9OUS&
42
PROC&SS
IN%AR' PROC&SS IN %AR&9OUS&
In warehouse when stock comes from the vendor site or from
central warehouse then the following procedure is used for inward
of stock in warehouse<
+. 'o,ument$ ,he,.?
+his is first and one of the most important steps of the in warding
procedure because if any warehouse inwards the stock in
warehouse without check the proper documents then it creates a
big trouble for the organi,ation. It may be possible that the stock
which come in the warehouse is not belong to that warehouse or
proper taGation is not done by the vendor for that stock so proper
checking of documents is must. Security guard and the person
responsible for stock unloading checks documents before allow
the stock to enter in the E>.
I4 $to,. ,ome$ 4rom ,entral %9D any other %9 or
4rom any $tore then 4ollo/ing do,ument$ are
,he,.ed 0y the $e,urity $ta44?
+.+ Stock +ransfer .ote #S+.$ staff checks whether this
S+. belong to this E> or to any other.
+.- +ransporter waybill which is different in different in
different states and somewhere it is also not require this
43
bill proves that this stock is legal and sales taGes are paid
for this stock.
+.! 'ate pass which confirms that stock comes out from
the store or E> with the permission of responsible person

S)OCK )RANS5&R OR'&R AS)OB
Stock +ransfer ;rder #S+;$-Stock +ransfer .ote #S+.$ are the
document which is used for transfer of stock E> and stores. At
the store level S+; is raise by /8s of there respective
department. S+; is also required for the movement of stock from
one warehouse to another or from one store to another. Ee can
say that all the movement of stock within the organi,ation is
takes place with the help of S+;.
STO Movement
44
I4 $to,. ,ome$ 4rom vendor@$ $ite then
$e,urity ,he,.$ the 4ollo/ing do,ument$?
+.+ !urchase ;rder #!;$ whether this !; is for this E> or
not and security also check the eGpiry date of !;.
+.- Invoice #(ill$ which specifies what qty. vendor sends
and what price vendor charge from company.
+.! elivery challan which is the proof of payment of sales
taG.
=PUC9AS& OR'&R AP.O.B
!urchase ;rder#!;$ which is only raise for the vendors-suppliers
and this !; is only raise by the &ront @nd Category +eam from the
Aonal office or from >ead office and it is also raise by stores and
in stores it is raised by epartment /anagers. !; from the store
level is only raise for the local vendors and vendors deliver stock
directly to the stores. Ehen /8s of the stores raise !; then most
of the time it first goes to category team and then category team
pass it to the vendors. In case when category team raise the !;
then it considered the requirement of the stores which is sent by
the /8s to the category team and then category team make !;
for vendors and decide whether stock goes to E> or directly to
the stores.
45
P.O. 5ORMA)
46

Unloading and ,ounting o4 ,arton$?
4
After checking the documents stock is unloaded from the vehicle
under inspection of responsible person and security staff.
Securities counts the cartons and see that cartons are packed
properly if there is any carton which is open or not in proper
condition the security put remark on the documents.
+. &ntry in $e,urity in/ard regi$ter?
After proper unloading security staff enters the details of in
warding in security inward register. +he format of inward register
is given below<

4!
-. Sto,. Count and Che,.?
After the entry of stock in the register this is the time to count the
stock manually or by the help of SA! and employee also check for
any damage in the stock that the E> get and if they find any
difference between the quantity mentioned in invoice and the
actual quantity they get or if there is any damage product, any
part missing or any bar code problem then they write that
information on the invoice of the vendor and pass it to the
concerned person of the E>.
!. &ntry into SAP?
.ow after counting the stock if counting is done manually then
the stock is entered in the SA! by scanning each and every
product for the better visibility of stock across the supply chain. If
there is any problem in bar code like it is not read by reader
because of any scratch on bar code or bar code is not on the
merchandise then the person try to find out its article code by
matching that product with other product of same characteristics
like a shirt of same color, same si,e and same brand has common
article code and when they find any such merchandise then they
enter its article code in the SA! manually and if they don8t
get any merchandise then they put it away and inform the vendor
about this type of product.
4"
%arehou$e Storage Pro,e$$
Storage is also the most important part of the warehouse because
we can not store all the stock in store due very high property
rents and every Sq. ft. of space is very costly in the regions where
stores are located and proper storage is also essential in E> to
avoid damages and for fast processing. In storage process when
stock is enter in the SA! then it is moved to there respective
section which are arranged according to there category or /C
code.
@very item put in E> according to its type and the way it moves
out from the E> like clothes are put in bins and racks for fast
movement of stock as they are easy for pick when they are put in
5#
racks. &or (ig items like consumer durable and furniture there is
no requirement of racks because they are put on the floors and if
they are put in racks them it is also hard to put them in racks. At
what location any item is placed is also decided because it is not
good to move glass items for a large distance so they put near to
out gate.
%arehou$e Out/ard Pro,e$$
+. S)N i$ dra/n 4rom SAP?
+he movement of stock from the E> to the different stores or to
other E> is know as stock transfer for this purpose store-E> raise
a Stock +ransfer .ote#S+.$ for E> according to the requirement
of store-E> and E> person takes this S+. from SA!.
-. Che,. availa0ility o4 $to,. through SAP?
(efore take the printout of S+. that person check that is there
any other store which send the requirement of the same product
if so then E> employee divide the stock between the stores
according to there requirement so that no one get stock out for
that material.
!. Pi,. li$t i$ made a,,ording to the S)N?
After checking the availability of material E> person generate
pick lists
51
according to the category or according to /C code of the category
like there is separate code for men8s jeans and separate /C code
for ladies jeans and merchandise is put in the E> according to
there /C code so that it is for the employee to pick the
merchandise.
#. &mployee$ pi,. item$ a,,ording to the pi,. li$t?
.ow the pick list is given to the employee which are responsible
for pick the merchandise and they take that pick list and as they
know where this particular product is placed so they go to that
section and pick the items according to the article code which is
write on the bar code of the product and put it on the conveyor or
in a blank carton and take it to the section from which outward is
done.
2. Item$ are $,an through the SAP?
Ehen pick stock reach to the outward system the person at the
outward system enter S+. .o.-elivery .o. and >andling unit
which is %1*** for outward in the SA! and then scan each item
52
one by one and if any item which is not belongs to that S+. then
a red light is blink in the bottom of SA! window and the person
put that item away and tells the persons those pick the item that
this is not the right product and the employee again search for
right product and when all items get
scanned then they pack the cartons for dispatching and put the
right tag for the store and S+. no. on the cartons.
53
3. Pre 'elivery Inve$tigation AP'IB o4 $to,.?
(efore dispatching the stock to stores for some product a
investigation is required to confirm that the dispatch item it in
good quality and it is not damaged this process is generally for
big product like furniture items, electronics items etc. In this
process employee check for any defect in the product and if there
is any such problem they found in the product then E> does not
dispatch it to the store.
7. Sto,. i$ pa,.ed?
Ehen stock is put in the cartons then it is the time to pack these
and packaging staff pack the cartons with the sheet of polythene
so that cartons are not opened easily and sometimes there are
some damaged cartons also prevented from opening during
transportation by this process.
". 'o,umentation?
Ehen stock is packed then the E> person does the proper
documentation for hassle free movement of goods. @mployee put
the S+. with gate pass which is very essential for outward
movement of stock without which security does not allow to pass
the stock outside the E> and a document is also attached for
sales taG purpose which is different for different states like if
stock is moved inside the
54
D! them an ;C stamp is very essential with the document or if
stock is comes in D! from outside then form :0 is required
without these documents movement of stock is illegal.
8. Out/ard &ntry Regi$ter?
After seeing the required documents security person make entry
into his register for the outward stock. +he format of outward
register is like this<
+:. 'i$pat,h o4 $to,.?
&or dispatching the material to the store the employee of the E>
tell the
transporter about the requirement of the vehicle in advance so
that the transporter arranged the vehicle on time for dispatching
the material
55
Out /arding O4
'amagedE'e4e,tive (ood$
56
5
Out/arding O4 'amagedE'e4e,tive (ood$
In warehouse most of the times vendors does not take their
damage stock back so in this case it is placed in the warehouse
but there is no use to handle this damaged stock so E> send it
back to the vendor and for sending it back to the vendor a
reverse or outward is !urchase order #"!;$ is made and stock is
outward from the warehouse on the basis of this "!;.
OU)%AR'ER&<&RS& PURC9AS& OR'&R ARPOB
"everse !urchase ;rder-;utward !urchase ;rder #"!;$ is the
required for the movement of stock from E> to vendor or from
store to vendor. "!; is required only in case of
defective-damaged stock when it is required to move back to
vendor. "!; is made by warehouse incharge in E> and by SC/
eGecutive in the store
5!
In/ard Pro,e$$ in Store$
5"
In/ard Pro,e$$ in Store$
+. 'o,ument$ ,he,.?
+his process is same as that of E> security staff checks S+.,
elivery Challan, and 'ate !ass when stock comes from E> and
!;, elivery Challan and Invoice when stocks comes from
supplier.
-. Unloading and ,ounting o4 ,arton$?
+his step is also same as that of E>
!. Sto,. ,ount and ,he,.?
+his step is somewhat different from E> because in case of store
the process of counting and checking of stock from any damage is
very fast in comparison to E>. In store the shortage and
6#
damages that are found in write on the documents which are
send to vendor at the same time after counting and damage
material is try to dispatch from store as soon as possible because
of space problem.
#. &ntry in $e,urity in/ard regi$ter?
After counting security enter the inward stock detail in security
inward register for future requirement. +he format of security
inward register is given below<
2. Sto,. move to $tore /arehou$e?
After counting and entry in the inward register stock is moved to
the warehouse of the store
3. &ntry into SAP?
Ehen stock moved to the warehouse then it is the time to enter
the stock in the SA! so that it is moved to shelves because
61
without entering the stock in SA! it is not recogni,ed by billing
counters for that reason after entering stock into SA! it is also
entered into "@/ which is used at cash counters. Store E>
persons scan each product one by one and enter it into SA!. In
case of food ba,aar there are many items on which there is no
bar code and the content of product bar code is not match with
the food ba,aar bar code so sometimes bar codes are also
attached
on the products in the store also and sometimes stores call the
vendors and they put the bar codes on the products according to
store requirement.
7. 'i$,repan,y note i$ made?
After counting and entering stock in SA! this is the time to make
a discrepancy note which tells the difference between invoice-S+.
and actual qty. and one copy of this discrepancy note is send to
,onal office, one to vendor. +he overall process of making
discrepancy note is same as that of E>.
". (RN i$ made?
/aking '". is also same as that of E> and the documents are
send to ,onal office.
62
Storage Pro,e$$ in Store$
63
Ehen the '". of the stock is ready and it also scan in SA! and
moved to store warehouse then it is the time to move it to the
shelves as soon as possible because a store can not hold the
stock for too long because of the less space availability so it is
better that respective departments move there stock from E> to
shelves so that more stock comes in E>. ecision of shelves
replenishment is taken by epartment /anagers they decide on
what basis stock is moved in the shelves. +he employee of the
respective departments checks the availability of stock in shelves
daily basis and if some shelves are empty then they fill it with
merchandise this is a regular process and special attention is paid
on weekends because there is more risk in stores in these days.
Stock movement is much faster in case of &ood ba,aar because
most of the items are perishables and these are comes more
64
frequently in the store and more space of warehouse is given to
&ood ba,aar.
Out/ard Pro,e$$ in Store$
+. (et permi$$ion 4rom 'M or SM?
&or moving any stock out of the store the SC/ department first
gets the
permission from the store manager or from the department
manager of the same department from which the stock is taken
for out warding. / only decides which stock is dead and when it
will be sent back to warehouse or vendor. (ut in the case of
defective items SC/ eGecutive of the store decide when this stock
is out from the store.
-. Sto,. i$ pa,.ed 4or out/ard?
After get permission from the / or S/ back end department
persons collected the stock from warehouse and packs it properly
for dispatch.
!. Out/ard or rever$e PO i$ made?
Ehen stock is packed a !; is made by SC/ eGecutive which is
known as "everse-;utward !; which is used when stock is sent
65
back to vendor and if stock is dispatch to warehouse then only
Stock +ransfer .ote is required.
#. Other do,ument$ are made a,,ording to
reCuirement?
Eith "!;-S+. other documents are also required for out warding
the stock from warehouse and these is 'ate !ass, ;C
stamp-waybill which depends on where you send the stock.
2. Se,urity ,he,. and out/ard regi$ter entry?
(efore allow stock to move out from the store security on the out
gate check the gate pass and count the no. of cartons according
to the gate pass.
3. Sto,. tran$4erred to /arehou$e or to
vendor?
After security check stock is loaded on the vehicle which is
arranged by the company transporter.
66
S9OR)A(&S AN' 'AMA(&S
O5 IN<&N)OR=
6
S9OR)A(&S AN' 'AMA(&S O5 IN<&N)OR=
Shortages and damages in inventory occur at many points in the
whole supply
chain. It occurs from<
Lendor to warehouse
In warehouse
&rom warehouse to store
In store
At all the places they occur due to some different regions so we
discuss all these in detail. I divide shortages and damages into
6!
two categories one when it occurs in warehouse and other when it
occurs in store.
+he fig. A which is given below is show how the stock is moves in
the supply chain but the fig. ( gives the movement of stock when
there is somse damage or shortage at the various points in the
supply chain.
+A? denotes the two way flow of stock from vendor to E> and
E> to vendor in case of damaged-defective stock.
6"
-. >? denotes the movement of stock from E> to store to E>
stock moves from store to E> in case when
some stock is not sale in the store or out of season stock or
damaged-defective stock.
!. C? denotes the movement of merchandise from store to
customer and customer to store when customer finds any defect
in the merchandise.
#. '? denotes the movement of stock directly from vendor to
store and also when store sends stock back to vendor due to
some defect.
2. &? shows the movement of stock directly from E> to
customer because most of the home deliveries in case of
consumer durables and furniture fulfilled from E>.
3. 5? is the movement of stock from one E> to another.
7. (? denotes the movement of stock from one store to another
because if any merchandise is not saleable in one store then it
transfers to another.
#
R&S&ARC9 M&)9O'OLO(=
1
R&S&ARC9 M&)9O'OLO(=
"esearch +ethodolo)y is to discover answer to ,uestion throu)h the -pplication
of scientific procedures the +ain ai+ of research is to find out the truth which is
hidden and which has not been discovered as yet' .arketin) research is the careful
analysis of a business situation by scientifically analy/in) it and usin) various
statistical applications to the sub0ect of study'
%esearch is the process of findin) a solution throu)h the use of scientific tools and
techni,ues' .arketin) research is a +ethodical and purposeful study conducted to
obtain solution for specific +arketin) proble+'
2
-s far as +ethod is concerned, I preferred personal interview or face to face
+eetin) to ensure accurate infor+ation and encoura)e frank response to ,uestions'
-t the sa+e ti+e telephone or +ail survey was not possible'
1hile fra+in) the ,uestionnaire, I tried to list a series of ,uestion, which could
elicit the needed infor+ation for proposed study' 2uestions, which were of no
particular value for the study ob0ectives, were not included' I also tried to keep in
+ind the respondents3 understandin) capacity, ability to recall the infor+ation and
his e4perience li+its' I didn3t include those
2uestions in the ,uestionnaire, which could have raised +isconception and
pro+oted non5cooperation on their part'
6owever in the ,uestionnaire I used si+ple words, which were easy to understand,
and beyond any doubt' In the sa+e way a+bi)uous ,uestions were not included
and ,uestions were arran)ed in a lo)ical order'
R&S&SRC9 INS)RUM&N)
7he research instru+ents )enerally used to collect pri+ary data are ,uestionnaires
and +echanical instru+ent' 8o+e of these are9
3
Fue$tionnaire?
2uestionnaire are for+al sets of ,uestions, prepare to collect the re,uire
infor+ation 'this is one of the +ost effective and popular techni,ue used in survey'
2uestionnaire is a tool which provides ri)ht infor+ation'
Sampling?
$roper sa+plin) desi)n is essential in +arketin) research so the sa+ple has to be
collectin) in such a way that it represents the entire population' .y pro0ect is based
on consu+er awareness so I a+ takin) sa+ple of those people who shop re)ularly'
Sample unit?
7he portion of the population that researcher need to tar)et and that represent the
entire population is known as a sa+ple unit' 8o I a+ tar)etin) the those custo+ers
who shop re)ular and visit store re)ularly
Colle,ting o4 data?
In dealin) with custo+ers it is often found that data, at hand are inade,uate, and
hence it beca+e necessary to collect data that are appropriate and ade,uate' 7here
are two way of collectin) the appropriate data:5
1' >y o0$ervation <
4
7his +ethod i+plies the collection of infor+ation by investi)ator3s own
observation, without interviewin) the respondents3 'In survey +any ti+es I
observed that is what the reason to da+a)es and shorta)e of )oods are'
'
2' Per$onal intervie/?
I have also collected +y data throu)h $ersonal interview' I +ade a well
structured ,uestionnaire and asked the+ what the reason of da+a)es and
shorta)es are'
Se,ondary data?
8econdary data is collected fro+ the co+pany internal and e4ternal resources'
1hile the internal resources include the co+pany literature, sales report, broachers,
pa+phlets etc' and the e4ternal sources could be included +a)a/ines, newspaper
etc'
Re$ear,h type?
.y pro0ect based on supply chain and da+a)es and shorta)e so I a+ takin)
interview and infor+ative research' 7he +ain advanta)es of this research that I
have no control over the variable' I have done +y pro0ect in $antaloons 8tore,
;oida' <adari warehouse and wa0irpur warehouse
5
Sampling method?
In +y survey I have used deliberate sa+plin)' 7his sa+plin) +ethod involves
purposive or deliberate selection of a particular unit of the universe' It can also be
known as convenience sa+plin)'
6
Sugge$tion$ and
Re,ommendation$
5OR Shortage$ 6 'amage$ in
%arehou$e
Shortage$ 6 'amage$ in %arehou$e
+. Shortage again$t PO?
Lendor-supplier sends stock only after they received !urchase
;rder from category
team or from the store according to the quantity that is
demanded in the !; but

sometimes category team or store wants that stock mentioned in

!; is not seen din bulk by the vendor they instruct vendor that
stock is send in 1 or : consignment because of the space
constraints so it is easy for E> and store to hold the stock. (ut
this is not the problem the real problem starts when E> and
stores want full stock mentioned in !; but vendor does not supply
complete stock. Ehen this situation arise then there is a shortage
in the E> and it is not able to fulfill the demand of the different
stores and ultimately there is a shortage in the stores and
customer not find the required product in the stores.
Sugge$tion$?
+his problem is very critical and some of the possible solutions for
this problem are that the management applies deduction
management techniques for solving this problem. If any vendor is
not able to fulfill our demands then company must deduct some
amount from the bill of retailer as a penalty for not fulfilling the
demand. Company selects minimum two vendors for any specific
category of product so that if any vendor is not able to fulfill the
demand then we may switch to another one. Company should
mention clearly the terms about deduction and return in the
agreement held with the vendor.
-. Shortage due to the4t during tran$portation?
!
Ehen E> get stock from supplier then the first thing that is done
after documents
check is counting of stock and this is most important because
most of the time the actual quantity does not meet with the
quantity mentioned in the invoice #bill$ and there are various
reasons for this difference like sometimes there is a counting
mistakes during packing of stock at vendor site but the most
critical problem is theft during transportation by drivers and when
stock reach to the E>-stores then there is discrepancy in the
stock.
As company is not responsible of this loss this is the problem of
vendor and his
transporter company does not borrow that loss the real loss of
company is only in terms of shortage that occurs due to theft.
Sugge$tion$?
/any times it is happen that counting of stock is not done just
after
unloading of stock it is done some time after so if there is a
shortage in stock then it is hard to convince the vendor on this
issue because vendor sends the right quantity but we don8t get
the qty. according to invoice so to eliminate these kinds of issues
counting must be done at the same time and a note is write on
the vendor copy of bill so that vendor know that we get less
quantity. Security must check at the time of unloading that
"
cartons are in good condition and if there is any damage in
cartons then security staff must note it.
!. 'amage$ during tran$portation 4rom vendor to
/arehou$e?
Ee all know the condition of Indian transportation and about the
worst condition of Indian roads. "oads are not only the problem
drivers are also the create problems many times because they do
not take their work seriously and alcohol is the major problem of
Indian drivers and sometimes it is very dangerous for the stock
they carry and also for many lives. If we talk about only roads
then many times the stock get damaged due to bad condition of
roads and it is very hard to transport breakable items like glass
and crockery items and in addition to this if drivers do not drive
carefully then it also increase the chances of damage.
Sugge$tion$?
Ehen stock comes from vendor to E> and during this journey if
any stock is damaged then it is totally the liability of vendor but
we must see that the stock which we get in the E> is good in
condition so we must check the stock properly and if any
!#
damaged is found in the stock we send it back to the vendor as
soon as possible because if we inform them late then vendor think
that damages occurs in the E>. Ee instruct our vendors that
stock is packed properly.
#. Shortage due to unavaila0ility o4 4inding material
in %arehou$e?
Ehen stock comes in the store it first entered in the SA! and a
'". is made and after that every one in the company sees the
stock level in the warehouse through SA!. Stores raise S+. after
see the stock level in the warehouse through SA! but there is also
a problem because when E> get stock transfer order from stores
then a pick list is made and employee pick stock from the
warehouse according to that list. @mployee pick stock according
to the article code print on the pick list they just go in the
respective section and find the mentioned article code which print
on
the bar code attached with article but sometimes employee does
not find some articles mentioned on pick list in warehouse. +here
are many reasons for this problem either because article is not
placed at its proper location during inwarding or due to wrong
!1
entry in the SA! during inwarding and this creates shortage in
stores because E> is not able to meet the demand of store.
Sugge$tion$?
+o solve this problem first we must train our employee about the
method according to which we put the stock in the racks and also
tell them where is the particular category is placed and try that
the employee who put the merchandise in any section in the E>
is responsible for picking merchandise from that section only. Ee
must use (in cards in the E> as they are not used in many Ehen
Article .o. is properly printed on the bar code tags.
2. 'amage$ in the %arehou$e?
!2
Earehouses are made because it is hard to for stores to carry
much stock because
stores are located in areas of very high property rents and every
Sq. ft. of land is very costly and company try to maGimi,e the
usage of this area and it is very hard to transfer stock from
different vendors to different stores and that is the reason for
develop warehouses and storage is one of the main function of
E> so better storage is very essential for E> but damages are
also happens in E>. Ehen stock is unloaded from the vehicle
then it is very essential to unload the stock very carefully but due
to mistakes of employee sometimes stock get damaged due to
poor handling. ;ther problem is with the storage because if the
stock is not store properly in the right place then damages also
occurs like if put something on glass items or if we stake the
stock very high and during handling it stock may fall and it may
damage. >andling stock inside the store is also a tough job if
proper conveyors are not available in the E> then it is very hard
to handle the stock carefully.
Sugge$tion$ ?
&or handling damages in the warehouse the fist important thing
is that company must provide proper conveyors to the E>. ;ther
thing is that the breakable items must not be put near to the
aisles like sanitary items, glass items and gift items etc and heavy
!3
items like furniture and consumer durable must put near to eGit
gate of E>. !roper instruction are also given on how to handle
different type of stock and inform our vendors that they must
print proper information about which type of stock is in any carton
and in spite of writing we use signs for instruction.
? 3. 'amage$ due to improper pa,.aging
If we want to transfer any thing from one place to another then
first and foremost
thing that you require is proper packaging without which no
product is safe. So while transporting goods from vendor to E> or
from E> to store proper packaging is must but due to lack of
knowledge about the packaging in employees there is always risk
of damage. @mployees in the E> does not use proper material
used for packaging like thermocol, proper si,e of cartons and
proper packed it with tape so because of this there is more risk of
damage in loosely packed items
Sugge$tion$?
!4
I see that many of the employees do not know how to packed the
stock and they take carton of any si,e and put the merchandise in
it and in this way it is completely the wastage of cartons and
stock is also not properly packed, so we must train our employee
about how to pack the different type of stock so that they do not
pack stock loosely and use proper type of carton this also take
less space and less risk of damage.
7. 'amage$ during tran$portation 4rom /arehou$e
to $tore?
Ee study how the damages occurs during transportation from
vendor to E> in the : point above but those damages are very
different from the damages occurs when we transport stock from
E> to store because when damages occurs during vendor to E>
then financially it is total loss of vendor but when stock is moved
from E> to store then our transporter is responsible for that and
according to terms and condition transporter pay for these
damages but many times damages occurs due to bad packaging
and proper packaging is responsibility of E> employees but in
some places !antaloons outsource the work of logistics to third
party Indo Arya.
Sugge$tion$?
!5
&rom getting rid of these kinds of problem proper packaging is
must and driver must have a good in driving and as pantaloons
transportation business is taken care by Indo Arya so it is not the
problem for pantaloon and all the damages that occur during
transportation Indo Arya is responsible.
". Shortage due to /rong do,umentation?
Ee see so many causes of shortages and damages from
warehouse point of view but this last reason of shortage is very
different from all of the above because in this case if we make
any mistake then it is complete loss of inventory loaded in a
vehicle not just some item shortage or damage this is happens
when our employees make any mistakes in documentation then
there are chances that sales taG department sei,e the stock
because of improper documentation. If any employee dispatch
stock without waybill or ;C stamp then it is against sales taG rules
and it is illegal so if there is no ;C stamp or waybill in the E>
then employee not dispatch the stock for stores and there may be
shortage of stock in stores. I see this in dare E> when there is no
;C stamp in the E> and because of this no out warding is done
from the E>.
Sugge$tion$?
!6
Company must provide the proper documents, which are
required for dispatch of stock from E>, on time and instruct the
E> that no stock should be dispatch without the proper
documentation.
Other Re,ommendation$
+. In warehouse there must be clear distinction between the rows
and some space is
also be there for easy handling of material.
-. A first in first out format is used to move stock out from the
warehouse so that old stock is not remaining in the warehouse.
!. Company instructs the vendors of Apparel category that they
pack the shirts and
trousers in polycovers of better quality so that they are not comes
out from the
cover.
!
#. Lendors must see that bar codes are properly attached to the
product because if
bar codes are not attached with product employees are not able
to enter that item
in SA! in most of the cases.
2. If E> employee enter any article in SA! which is without bar
code by see its
article code on other article of same type then he must put bar
code on the product
latter so that same problem does not occur in the store.
3. E> must instruct employees that they open cartons of stock
properly so that is
used again because most of the cartons get damaged employee
do not open them
properly.
!!
Sugge$tion$ And
Re,ommendation$
5or Shortage$ 6 'amage$ in
Store$
Shortage$ 6 'amage$ in Store$
!"
Shortages and damages of the stores is very much different from
the shortage and
damages of the warehouses because if there is any shortage for
any merchandise then customer for which we taken so much
precaution is not able to find that merchandise in the store so
whatever steps we take to remove shortages from our system
and we are not able in fulfilling the demand of our customer then
it is the failure of our system. In case of warehouse we only know
that we less quantity of that merchandise but customer does not
know that and when customer come for shopping in our store and
we are able to meet the demand of customer then we say that we
are successful. amages in the stores are also very different
because we can not hold the damage stock for a long period of
time in our store because of the space problem and we also check
the shelves of the store on the regular basis so that no
damage-defective or eGpired date product placed in the shelves.
+he various reasons of store level shortages and damages are
discussed in this
section<
+. 'amage$ due to ,u$tomer$?
when shelves replenishment is done by store employees then
many times they do not put the merchandise at the right place
and due to which it is easily damage when any customer even
touched with it. /any times we see that children take the
"#
merchandise from the shelf and damage it and in most of the
cases children take out the food items from the shelves like soft
drinks, biscuits, snacks etc. If children eat these items in the
stores and the packets are not reach up to the billing counter
then it is complete loss but if parents take empty packets or half
filled packets to the billing counter and they pay for it then it is
not a problem. In cases when any merchandise damage due to
the mishandling of costumer and even then they are not ready to
pay for that then it also a loss.
Sugge$tion$?
+he possible solutions for this problem are that the employees
pay
attention during placing merchandise in the shelves. +hey must
see that no merchandise is put outside the shelfJ no merchandise
is put here and there in the store. &or handling the damages
occurs due to children store must take care that they put food
stuffs at some height so that children do not touch easily. !roper
paging is also done in stores for prevent the children from
damaging the merchandise. If any merchandise damaged by
customer then salesperson try to convince the customer for
paying the charges for that and if customer is not ready for that
then staff must not force them.
-. Shortage due to un,ertainty in demand?
"1
Uncertainty is the mother of inventory and father of
stoc out!
Dncertainty is the most common reason of stock out because
when store order for the stock then they consider only the normal
demand but in many cases the demand get increased and the
store is not capable in dealing with such situation so there is
shortage like in case of big days there is shortage of many items.
Sugge$tion$?
epartment managers must consider the past demand in case of
special discount days. (efore placing the order / not only
consider only one week sell they must see the demand of the last
season also and see the offers of the competitors in that reason.
!. Shortage due to the4t A$hrin.ageB?
Shrinkage is the most common problems for the retailers
worldwide and theft is
the cause of both shortage and financial loss. +heft is mostly
occurs in the items
which are easily comes in the pocket of customer and it of high
price value like
valet, sunglasses etc.
Sugge$tion$?
"2
&or prevent the theft from the store security tags are the best
options. Store must put the security tags on the product
according to its requirement like soft tags, hard tags etc. and
especially in case of high price products. !roducts like watches,
sunglasses and valets must put inside the glass counters.
Salesmen and security pay special attention on the customers on
which they have doubts.
#. Shortage due to /rong allo,ation o4 $to,. 0y
,ategory team?
I have seen that the allocation of stock which is done by category
team from the E> is not done after seeing the requirement of
that store and its location category team just distribute the stock
according to the availability of stock in warehouse and the price
of the merchandise due to which shortages occurs.
Sugge$tion$?
before allocating the stock to the stores category team must
concerned with the store team and allocation is done is done
according to the requirement of stores.
Other re,ommendation$ 4or $tore level
$hortage$ and damage$ that I li.e to provide
in thi$ report are a$ 4ollo/$?
+. Stock must be transferred to the shelves in time that is before
afternoon so that
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customers do not feel problem.
-. If there is shortage for any item then any other stock placed in
that shelf or if
some merchandise is present in that shelf then we must put these
items like that
the shelf does not look empty.
!. (efore placing any merchandise in shelves responsible person
must see that the
merchandise and if any offer with it is properly entered in the
"@/ so that it do
not create any problem when customer comes for billing of that
item because I see
in many cases that offers on the products are not entered
properly in the "@/ and
due to which many times store is not able to provide that item to
customer inspite
of presence of that product in the store.
#. +he damaged stock from the store must send back to vendor in
time and do not
store it in the store if vendor do no take it then destroy it after
taking permission
from the concerned person and from the vendor.
"4
2. .on salable items like hangers for clothes, polybags etc are
also used properly
and if any hanger is blank then employees must take it out from
the 'ondola.
CONCLUSION
"5
CONCLUSION
After doing this project in !antaloon "etail I understand how
eGactly the work is done in the supply chain but after observing
many things I reach to the conclusion that there are still many
gaps in the supply chain of the company and we must try our best
to fulfill these gaps so that we provide better service to our
customers and also reduce our operating cost because we are in
value retailing so only cost cutting provides us better margins and
to archive all this we have to work hard and make strong relation
with our vendors, logistics service provider and with our
customers.
"6
"
R&5&R&NC&S
"ndian Retail Report #$$%
Retail &i' (e).#$$%
Retail &i' *ec.#$$+
"ma,es retail *ec.#$$%
Supply -hain Mana,ement )y -hopra . Meindle
www.pantaloon.com
"!
2uestionnaire
=or the .ana)e+ent 7ea+ of >lobus 8tore $vt' &td' ?;oida@
Name of the Employee :-
.
Department :-
..
Designation :-
..
Wor e!perience in "lo#us :-
..
Signature
7his is pri+arily a 81*7 -nalysis for >lobus' - detailed analysis with these
,uestions included will help'
1' (ould newco+ers in the %etail Industry create da+a)in) co+petition for
>lobusA
-@Bes C@ ;o
2' Is there an e,ually powerful force as >lobus in the +arket who can +uscle into
our territoryA
-@Bes C@ ;o
""
3' -re there other kinds of differentiators of other co+panies which could take
away >lobus3 top position in the +arketA
-@Bes C@ ;o
4' <oes >lobus have any weaknesses co+pared to the co+petition in a key +arket
se)+entA
-@Bes C@ ;o
5' Is the +arket developin) in ways that favour co+petitors +ore than >lobusA
-@Bes C@ ;o
6' (ould >lobus custo+ers possibly +ove away and take +a0or sources of revenue
away to a co+petitorA
-@Bes C@ ;o
' Is there a +a0or area in the +arket where >lobus la)s rather than leadsA
-@Bes C@ ;o
!' <oes any co+petitor have a stron)er hold on >lobus3 bi))est custo+ersA
-@Bes C@ ;o
"' Is there a )rowin) +arket where >lobus is bein) left behindA
-@Bes C@ ;o
1#' -re there environ+entalDre)ulatory threatsA
-@Bes C@ ;o
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11' (ould unsuspected challen)es arrive fro+ outside the e4istin) industryA
-@Bes C@ ;o
12' Is >lobus3s +arket too broad for all threats to be safely coveredA
-@Bes C@ ;o
13' 1hat are the stren)ths of >lobus A
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14' 1hat are the differentiators ?include 4$s@ A
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15' 1hat are the opportunities A
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7hank Bou
1#1