02.ashok kumar(retail management)

8/8/2019 02.Ashok Kumar(Retail Management)

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IIPM Business School

REPORT ON RETAIL MANAGEMENT

On

Submitted to

Prof. Vijay kumar jayaram

In partial fulfillment of the requirements of the course

Submitted by

Ashok Kumar Samman

Hari

Prakash

Brooks


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Introduction

India has often been called a nation of shopkeepers. Presumably the reason for this is;

that, a large number of retail enterprises exist in India. In 2004, there were 12 million

such units of which 98% are small family businesses, utilizing only household labor.

Even among retail enterprises, which employ hired workers, a majority of them use

less than three workers.

Retailing is the combination of activities involved in selling or renting consumer

goods and services directly to ultimate consumers for their personal or household use.

In addition to selling, retailing includes such diverse activities as, buying, advertising,

data processing and maintaining inventory.

While sales people regularly call on institutional customers, to initiate and conclude

transactions, most end users or final customers, patronize stores. This makes store

location, product assortment, timings, store fixtures, sales personnel, delivery and

other factors, very critical in drawing customers to the store.

Final customers make many unplanned purchases. In contrast those who buy for resale

or use in manufacturing are more systematic in their purchasing. Therefore, retailers

need to place impulse items in high traffic locations, organize, store layout , trains

sales people in suggestion , and place related items next to each other, to stimulatepurchase.

THE IMPORTANCE OF RETAILING

Organized retailing in India was estimated at Rs.18, 000 crores in 2002-2003 and has

grown at about 40% over the last 3 years (Source KSA Retail Outlook).

Retailing has a tremendous impact on the economy. It involves high annual sales andemployment. As a major source of employment retailing offers a wide range of career

opportunities including; store management, merchandising and owning a retail

business.

Consumers benefit from retailing in that, retailers perform marketing functions that

makes it possible for customers to have access to a broad variety of products and

services. Retailing also helps to create place, time and possession utilities. A retailer's

service also helps to enhance a product's image.


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Retailers participate in the sorting process by collecting an assortment of goods and

services from a wide variety of suppliers and offering them for sale. The width and

depth of assortment depend upon the individual retailer's strategy.

They provide information to consumers through advertising, displays and signs and

sales personnel. Marketing research support is given to other channels, members.

They store merchandise, mark prices on it, place items on the selling floor and

otherwise handle products; usually they pay suppliers for items before selling ,,them to

final customers. They complete transactions by using appropriate locations, and

timings, credit policies, and other services e.g. delivery.

Retailing in a way, is the final stage in marketing channels for consumer products.

Retailers provide the vital link between producers and ultimate consumers.

RETAIL STRATEGY AND STRUCTURE

Successful retail operations depend largely on two main dimensions: margin and

turnover. How far a retail enterprise can reach in margin and turnover depends

essentially on the type of business (product lines) and the style and scale of the

operations. In addition the turnover also depends upon the professional competence of

the enterprise.

In a given business two retail companies may choose two different margin levels, and

yet both may be successful, provided the strategy and style of management are

appropriate.


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RELIANCE COMPANY PROFILE

RELIANCE GROUP

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private

sector enterprise, with businesses in the energy and materials value chain. Group's annual

revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited,

is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of

Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward

vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum

refining and oil and gas exploration and production - to be fully integrated along the materials

and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and

marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and

retail.

Reliance enjoys global leadership in its businesses, The Group exports products in excess of

USD 15 billion to more than 100 countries in the world. There are more than 25,000

employees on the rolls of Group Companies. Major Group Companies are Reliance Industries

Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail

Limited) and Reliance Industrial Infrastructure Limited.


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RELIANCE FRESH

Indias Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the

blocks by launching its first Reliance Fresh outlets in Hyderabad,

Reliance fresh is the retail chain division of reliance industries of India which is headed by

Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into

almost every metropolitan and regional area of India. Reliance plans to invest Rs 25000

crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities

across the country. The reliance fresh supermarket chain is rils rs 25,000 crore venture and it

plans to add more stores across different g, and eventually have a pan-India footprint by year

2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars

and dairy products and also will sport a separate enclosure and supply-chain for non-

vegetarian products. Besides, the stores would provide direct employment to 5 lakh young

Indians and indirect job opportunities to a million people, according to the company. The

company also has plans to train students and housewives in customer care and quality

services for part-time jobs.

Reliance Fresh will

Forge strong and lasting bonds with millions of farmers and will transform the

Relationship with customers to a new level

Offer unmatched affordability, quality, convenience, service and choice

Offer our customers the widest range of fruit and vegetables at the best prices in

the neighborhood

Provide for the daily needs of our customers by offering staples, grocery and

household products at great prices

Offer consistent high quality, unbeatable freshness and great service so that our

Customers know that we can be trusted every day.


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RETAILING ACTIVITIES/OPERATIONS WITHIN THE STORES

Getting Products to Shelf

1) Indenting & Purchase Orders (POs)

(a)Indenting DC Delivery:-

Indenting will be happen after checking stock in the store and goods in transit. Or whenever if

required any changes in indenting due to season, weekends or any festivals then the quantity

is modified. For branded goods there is a automatic indenting system which is handled by the

head office (Mumbai). Delivery of fruit & vegetables is after 48hours after being raised.

Indenting for milk and dairy products is delivered after 36 hours.

(b) Raising PO for Bakery

PO (purchase order) for bakery supply is raised in the store and also released to the vendors

by the stores. PO on vendors can be raised only once each day & it will be valid for 24 hours.

2) Receiving:-

(a) Checking of Delivery in DC

All the Dry DC delivery will be checked by a store staff in the DC staging area before

packing and loading. This is to minimize delivery count error and ensure that right quantity is

delivered to the stores. Behind this all the activity owner is Store Manager.

(b) Receiving Goods in Store: From DC & CPC

Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of

receiving goods from DC many things which is followed by the SM, ASM,& CSA:-

Check the seal in front of driver.

Note down the air condition temperature.

Inspect stocks for transit damages.

If any HU (Handling unit) / article is found damaged, excess, or missing noted it on

the trip sheet for return to DC.

Do the GRN (Goods return note) for the delivery for the actual received quantity.

Stores are not unloading transit damaged stocks. Transit damages will be returned to

DC in the same delivery truck.

The main focus during goods receiving must be to unload the crates/ cartons from thetruck as quickly and safely as possible.


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(c) Receiving from Vendors

Procedure for receiving goods directly from vendors. Behind this whole activity

owner is store manager/ asst. store manager. Reliance fresh stores indenting specially

bakery, beverage and books/magazines and music. SM/ASM Checks:-

Check the deliveries for quantity, damages and freshness and accept only good

products as per shelf life norms.

Do not accept any short shelf life or damage quantity from vendor and reduce it from

the invoice if required.

Remove all expired products from the shelf and get them replaced with fresh product

without any GRN for the same.

In case of books/magazines and music SM/ASM check bar-codes on the books ormusic CDs delivered by the vendor & return the unsold items to the vendors.

Vendors and store staff check physically check DSD deliveries for damages and

freshness and accept only fresh saleable products.

3) Replenishment of goods

(a) Replenish Shelf from Goods Receiving Area

Process of moving goods from goods receiving area to the respective bays/freezers/chillers as

per the priority fill rule.

Frozen products received must have first priority for stacking in the Freezers.

Strictly follow FIFO

Place previous stock in the front/top of the shelf.

Chilled product received must have second priority after frozen product for stacking

in the chillers.

4) Managing Price Changes

(a) Changing SELs for those SKUs where price has been changed. All the changing

of SKUs is done by headquarter Mumbai.

5) Managing Planogram

Implementation of changes of Planogram


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The Planogram indicates the location for each SKU on a shelf. This process describes how to

change Planogram. Changing of Planogram is wholly managed by headquarter. Headquarter

send new Planogram to store by mail. Changing of fixtures and shelf heights, at

per new Planogram. The major change of shelf is less than 5 bays. Check quality of stock

received as per Planogram, raise an indent of additional stock if required. Stack goods as per

Planogram and readjust SEL to align with the left hand side of the first facing going from the

left. All the changes made on shelf to be signed off by store manager. All the Planogram to be

provided in standard format. Planogram indicate shelf heights. Planogram is send to the store

at least 2 days in advance of the change. No stock to be displayed on the shelf if it not in the

Planogram. If the F& V section looks empty in the late evening because of stock outs, then

store manager may change only the F& V Planogram in a suitable manner to give appearance

of full store.

6) Getting Products from Shelf to customers

(a) Promotion management (setting up the store for new promotions)

Store check that all new promotional stock has been received from the DC and the

free gift under promotional offer are bundle along with the promotional stock. If the

free gift is too large to be accommodated on the shelf the gift should be provided to

the customer at the till. Put up new promotional signage above the end cap at the marketing defined

locations.

ASM/SM briefs the staff at the morning and afternoon meeting on the promotion

details.

Staff need to be briefed on the following :

Details of the promotion

Period of the promotion

Advantages to the customer

Any special arrangements at the till

Sales target for the promotion

Process for dealing with left over promotion stock

If the customer brings the promotion item back for exchange / refund the customer

has to bring back the free offer as well. Exception can be made at the customers

favour at discretion of store manager.

7) Stock Display Management


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Filling up the gaps on the shelves for SKU sold during the day is defined as spot fill.

Fill F&V in a similar manner using crates stored in the bottom shelf of the wall racks,

below heapers and in back room. Follow FEFO, FIFO rules.

In case of F&V, remove the old crates, place the new crates on the racks and then

place the older products on top of the newer products FIFO

Checking of temperature of chillers and freezers is also a part of SDM.

It is the process of checking and moving stocks to ensure that the older stock gets

sold before the newer ones.

FEFO / FIFO to be followed for stock rotation for non F&V SKUs.

The thing which is strictly followed is removal of damaged part of the F&V will not

be carried out at the shop floor under any circumstances.

In every store every day employees check for date code check schedule for the day in

store perform.

Employees removed expired products from the shelves and take them to the back of

the store.

Employees identify & segregate near expiry products for mark down as per

markdown policy and guidelines.

Procedure for selling loose staple products to the customer in desired quantity.

Procedure for managing the concessionaire in our stores like the Pickles counters,

Sweet counters etc.

Home delivery: for this there is some procedure which is followed by stores.

Purchase a detailed street map of the local area e.g. Eicher

map

Outline on the map the catchments which fall in 2 Km

radius of the store.

Prepare a list of roads / building with in that area.

They appoint two employees for Home delivery champions

(HDC) for order taking, picking and billing.

Home delivery associate (HDA) billing and delivery.

There is two type of home delivery which is given by the

RF: Convenience order this is a situation in which the

customer has come to the store, picked items, got them

billed and then request RF store team to deliver to his

residence. The payment in this case for the goods has

already been received.


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Phone Orders - This is a situation in which the customer

does not carry out the activities of physically picking,

billing etc. but places an order on phone by calling either at

the store or at the call centre. The payment in this case

would be received once the delivery CSA goes to the

customer destination and hands over the goods.

Big orders store hire auto, rickshaws & it is decided by

store manager.

8) Managing waste and markdowns :

(a) Segregation of damaged and expiry in store :-

(a) For F&V crates are received carefully for the item not for sale as per reliance retailquality and are removed from the shelf.

(b) It is done by CSA / F&V champion.

EXPIRY:-

(a) Near expiry product is markdown as per the RR rule.

(b) An expired product is segregated and are treated as per following.

PRODUCT TYPE TREATMENTDSD supply Exchange with fresh stock from the

vendor at the time of next delivery

DC supply Dump in store.

(b)Markdown for damages and near expiry:-

Damaged and near expiry products are markdown as per the following rules:

Markdown criteria:-

Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.

Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM.

Beyond Rs 30 or 30% of SP & it is done by state fresh head.

Dumping of damages & expiry product:- Treatment for damaged & expired product are

done in following manner:-

Loss type Action

(a) Type C damage Dump in store (shown in SAP)

Dispose in store.

(b) All expiry (DC supply & DSDwithout RTV)

Dump in system (SAP) Display in store


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(c) Expiry (DC supply with RTV) Exchange with fresh stock, fresh

vendor at the time of next delivery

For processing of dump (damaged & expired) approval is obtained from store

manage. After dumping, all the dump are entered into dump register in the presence of SM

with his /her signature.

The entire dumped product is then get hand overed to garbage collection agency.

For type C damaged product some part of each product is kept as proof.

Finally the dump register is present near DM/AM for approval (signature).

(c)Dump on arrival:-

On arrival of goods (F&V stock received from DC) poor quality goods are

segregated.

It is kept in separate place in the store with the sticker dumped on arrival not

for sale along with receiving date.

And the respective SM is informed.

In the GRN (goods received roles) for the delivery, poor quality stocks are

entered as Damaged Quality.

Further it is kept for inspection and area F&V executive is informed. E-mail is

send to the F&V head / F&V category head.

Finally dumped stocks are hand over to garbage agency.

In case the GRN is done at the back end maintain a record of the DUA and also

record the some on the invoice that is sent to the commercial team.

(9) Returns:-

(a) Goods Return to DC:-

A finalized list of good stock article for return to DC is obtained from state

merchandising team.

According to the list stock of articles are segregated and are moved to the

back office.

Return schedule is obtained from the state merchandising team and packing

of goods carton are planned.

They are packed properly. Food and non-food items are packed separately.

And GRDC is created in SAP for the quality to be returned.

Finally it is loaded and dispatched to DC in DC truck and return to DC

documents is get signed by the truck driver and is kept with itself.

(b) Goods Return to Vendor:-

Stocks which are to be returned to vendor are taken out to the back room..

DSD returns are segregated as per category guidelines.

Return to vendor document is created in the store.

Returns are loaded to the vendors vehicle.

2 copies of vendor document are made and is got signed by the vendor.

One copy is issued to the vendor and 2nd copy is filled as record.

Security control register for returns are updated regularly

(c) Physical verification of stock:-

All PI documents present in the system are checked and closed. Stocks take checklist is updated.


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It is managed with DC to ensure that there is no afternoon or evening

delivery on the stocks count day.

Following are checked and ensure:-

(i) GRN for all DC deliveries have been prepared.

(ii) GRN for all DSD deliveries have been completed.

(iii) All damaged products (type c ) have been dumped.(iv) All expiry product have been dumped.

(v) PI documents for stocks take is generated.

(vi) HHTs are managed and ensured that they working properly etc.

(d) Stocks count and reconciliation:-

Objective of the count, the layout of the stores and the process are briefly

explained to the staff.

For stock count staffs are delivered for counting of articles in fixtures and for

entering the count in the HHT.

Back of store store take

SKUs by weight (F&V, loose staples, etc)(i) Each loose article are weighed separately and quantity stickers are pasted.

(ii) It is continued until all SKUs are weighed.

SKUs by count:-

(i) Product variants are segregated. Number of units are counted and stickers are pasted

with the quality on SKUs.

(ii) It is continued until all the SKUs are not counted.

(iii) PI count in the HHT is opened (all PI document together) and quantity is entered after

scanning the EAN / article code of the SKUs from the product in the HHT PI

document.

(iv) It is continued in this manner till all the SKUs in the back of store is counted and the

quantity is entered in the PI documents with the help of HHT.

(e) Store Opening :-

(i) Store shutter is opened.

(ii) Burglar alarm is put off.

(iii) Entry for collection of keys and store opening details are recorded in the

register kept at the security.

(iv) Lights are switched on and all the equipments are checked for working made.

(v) Generators are checked for water level, engine oil and Diesel.

(f) Store closing:-

(i) Announcement is made for store closing 10 min before closing.

(ii) No. of tills to be closed or operated fully depends upon the no. of customerin the store.

(iii) Ensure that no customer is present inside the store.

(iv) POS & EDC closure process is performed.(v) It is checked that equipment is in order or not after which the store is closed.

(vi) Security guard is got to put paper seal on safe and almirah.

(vii) All air-conditioners are switched off except server room a/c (which must be

maintained between 22-24 degree c )

(viii) Display lights and faade lights are switched off.

(ix) Back room lock is sealed with a paper seal.

(x) Burglar alarm in the store is updated and key register is signed in.

(xi) Finally shutters are locked.

On the sales floor-stock take:-


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(i) Counting and weighing of bays are started, and quantity or count stickers are pasted.

(ii) PI documents are opened , EAN/ article code on the products are scanned using the

HHT and the counted number is entered.

(iii) Similarly all the SKUs shelves and bays counted on sales floor and the count entry is

entered in the PI document.

(iv) Control sheet for the fixtures that has been counted are updated.

(v) Once all the articles in the store are counted and count entry is done in the HHT , post

the count data by pressing the post count button in the HHT only.

(vi) HHT would display the list of SKUs for which count has been not entered then the

article in the store is looked upon and count is updated in case the article is

present in the store and count entry was missed earlier.

(vii) The final counted data is posted once again by pressing the post count button.

(viii) Success log is checked to ensure that all the PI documents are successfully

posted.

(ix) The stock take report is generated is SAP and inventory differences is listed.

(x) In case of major variations record is performed and the count in the PI document is

changed and the count is reported.

(xi) The variation is checked and confirmed and then the difference is posted by postingthe PI documents in ZSTORE, using the Post option under Phy inv. Post in

the physical inventory menu.

(xii) The stock take check list lifted in the store.

ANALYSIS OF RELIANCE RETAIL STOREIN MONTH OF MAY 2009

AVERAGE NUMBER OF VISITOTS BASED ON MALE AND FEMALE:-

Considering the above chart it can be concluded that female visit more as compare to the male

counterpart and hence reliance fresh owner should consider about the female and should take

more care of female in the sphere of services, protection and product availability also.


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AVERAGE NUMBER OF VISITOR BASED ON DIFFERENT AGE GROUP:-

if we consider the above chart it can be easily concluded that the people between the age

group 23-32 visit more and more in the reliance fresh store and hence store manager

should take care of this age group peoples so that they may captivate them by givingvarious discount or facilities etc.

RECOMMENDATION

COMMUNICATION:

Based on my observation I found that reliance fresh is notable to make an advertisement properly as compare to big bazaaror other retail store which is its competitor. so company should

make a proper team to let the people aware about their schemesand offers being given by reliance fresh.

Company should increase the number of counter so that it mayminimize the quie of the customers.

Company should acquire more and more skilled people so that itmay satisfy their customer in all areas.

BEHAVIOR AND COMMITMENT:

Behavior and commitments of sales man towards the dry outlets should be improved.

02.ashok kumar(retail management)

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