Retail & Warehouse transactions, design and analytic for FMCG, Grocery and fruits & vegetables product type

1. Submitted By: Bilash Dash
Bhagyashree Shende
Rohit Kumar
Sneh Salila
Mukul Parashar
K. ShriRam
Supply Chain Modelling & Design

2. Receiving goods
Check against
stock transfer
note
Update the
system
Determine where
stock to be stored
in the store
Billing Checkout
Transaction Inside Retail Store

3. Front Desk enter the product in
damaged code/column
Material Manager (Officer) checks
the goods
If product is damaged then it is
returned back to WH, else moved
to normal (saleable) goods
Damaged Goods
Front desk personal update system under
return code/column
Material Manager/Officer inspect the
goods
Based on condition of goods if it is
damaged then it is returned back to WH,
else moved to normal (saleable) goods
Return Goods
Further Transactions in Retail Store

4. Storage
Designated location of SKU (Space allocation)
Raise GRN
Contain details of price and quantity
Receiving goods
Check Against Invoice (SKU, Price, Quantity)
Transactions in Warehouse (FMCG)

5. Ship it out depending on order
Marshalling straight away (no storage)
Quality inspections of goods
Accept good quality products
Movement of goods from Mandi to warehouse (Carry
Transport Challan)
Transactions in Warehouse (Fruits and Veg)

6. Shipping
Picking SKU wise and Packing store wise
Shelf Storage
GRN to avail products to sell
Issue note for processing and packaging
Weight to check the losses
Create bulk GRN
Consolidated GRN
Receive in Bulk
Check Against Invoice
Transactions in Warehouse (Grocery)

7. 15%
5%
7%
2%
.5%
2.5%
30%15%
3% 10%
Total Empty
Space (To
walk) 20%
Manager’s Desk
Retail Store Layout (Planogram)

8. 25%
10%
3% 2%
5%
Empty Space for movement of goods 15%
Storage Space 40%
Warehouse Layout (Planogram)

9. • Work Force Analytics
• help to align labor schedules to store traffic, required fixed activities and
other variables driving store activity.
• address employee preferences for when they can and cannot work, and when
they prefer to work.
• labor scheduling system allows managers to schedule the highest-performing
employees at times when there are the most customers in the store, e.g., on
weekends.
Retail Analytics

10. • In store Analytics
• technologies that collect and analyze in the moment data about traffic
numbers and shopper behavior in-store.
• Localized promotion and marketing can be done by giving in store offers.
• Also the hot selling items can be placed at the back of the store and on the
way the impulse items can be placed.
• Placement and forecasting of the products done according to the dwell time.
Retail Analytics (Cont..)

12. Inventory Management
• Optimal inventory management ensure un-
interrupted product supply to meet the consumer
demand.
• Lead-time and re-order point is used to plan
inventory.
• Amount of “buffer stock and safety stock”.
Loyalty Analysis or CRM Analytics
• It is done based on their past purchase data from
the store to know preferences & buying patterns.
• It includes below activity:
• Identify consumer segments
• Closely track and maintain constant touch-point
with your most profitable & loyal consumer
segments
• Formulate cross-selling and up-selling strategies
Store-layout Planning (Planogram)
• Macro space planning
• Assortment Optimization
• Divide items based on- core, complimentary,
secondary and impulse items
Sales Forecasting
• Sales forecast is essential for:
• Stock replenishment by categories and SKUs
• Predicting excess and stock-outs
• Designing store promotion activities and
optimizing resource allocation
• Capitalizing on peak sales weeks
Retail Analytics (Cont..)

13. • The Perfect Order is a measure that monitors a manufacturer’s ability to fulfill a
delivery specification matching the requirements of a customer’s original order.
Perfect Order = ƒ(fill rate, invoice accuracy, on-time delivery, damage
free)
a. Case fill rate (or other similar measures) This is the percentage of the customer order, at the
individual product level, supplied on the first delivery.
b. Invoice accuracy Each line item in the bill delivered to the customer is accurate.
c. On-time delivery Measures conformance to a delivery date based upon the original customer
requested data of delivery.
d. Damage free Each item delivered is received by the customer as a quality, sellable product at
the agreed upon price.
Analytics in warehouse

14. • The iScore measures supply chain integration between consumer, customer and manufacturer.
This score is calculated where the numerator is the unit quantity in delivery. The denominator is
the forecasted store level order demand for the time period from delivery date until the next date
of DC replenishment. This metric measures how well product is flowing into the retail distribution
center as compared with demand for store level replenishment.
• Contributing out-of-stocks measures out-of-stocks that stem from product shortages in the
retailer DC. This percentage would be measured after the next delivery of product.
• Customer distribution center inventory effectiveness measures the variance between the value
of actual existing downstream inventory in the customer distribution center and a calculated
inventory target level.
New Metric for Calculating Warehouse Performance

15. Replenishment Index = ƒ(iScore, contributing out-of-stocks, inventory
effectiveness)
Replenishment Index = (iScore) X (contributing out-of-stocks) X
(inventory effectiveness)
Delivered cases = 110 Total consumer demand measured
through POS data during evaluation
period = 85 cases
Order cycle time = 5 days Pre-delivery inventory level = 15 cases
Average target inventory = 45 cases
Out-of-stock rate at end of order cycle
= 5%
Out-of-stocks caused by product
shortage at retail DC = 2%
Replenishment Index

16. iScore = [1-ABS(110-85)/85] = 71%
Contributing out-of-stocks = (1—2%) = 98%
Customer DC inventory effectiveness = [ABS(125-85)/45] = 89%
Replenishment Index = 71% X 98% X 89% = 62%
Advantages of Replenishment Index:
• Delivery excellence from manufacturer to retailer DC can be directly
tied to reduction of out-of-stocks
• Over the long-term, deliveries from the manufacturer supply chain
into the retail supply chain can be managed better to align with
consumer demand, eliminating the disruptions that increase cost
• As orders come into greater alignment with demand, safety stocks
can be lowered, generating annuity savings in working capital.

17. Vendor Management
• It enables to control costs, drive service excellence
and mitigate risks to gain increased value from their
vendor.
• Evaluating Vendor on below KPIs
• Pricing: Competitive and Stable price (low
variance)
• Quality: Compliance with purchase order,
conformity to specifications, reliability (rate of
product failures), durability, support, warranty
• Delivery: Time, quantity, lead time, packaging,
emergency delivery, technical support
Inventory Management
• Lead-time and re-order point is used to plan
inventory.
• Amount of “Cycle stock, buffer stock and safety
stock”.
Warehouse analytics

18. Thank you