Submitted By: Bilash Dash Bhagyashree Shende

Rohit Kumar Sneh Salila

Mukul Parashar K. ShriRam

Supply Chain Modelling & Design

Receiving goodsCheck against stock transfer

note

Update the system

Determine where stock to be

stored in the store

Billing Checkout

Transaction Inside Retail Store

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

Storage

Designated location of SKU (Space allocation)

Raise GRNContain details of price and quantity

Receiving goodsCheck Against Invoice (SKU, Price, Quantity)

Transactions in Warehouse (FMCG)

Ship it out depending on order

Marshalling straight away (no storage)

Quality inspections of goodsAccept good quality products

Movement of goods from Mandi to warehouse (Carry Transport Challan)

Transactions in Warehouse (Fruits and Veg)

Shipping

Picking SKU wise and Packing store wise

Shelf Storage

GRN to avail products to sell

Issue note for processing and packagingWeight to check the losses

Create bulk GRNConsolidated GRN

Receive in BulkCheck Against Invoice

Transactions in Warehouse (Grocery)

15%5%

7%

2%

.5%2.5%

30%15%

3% 10%

Total Empty Space (To walk) 20%

Manager’s Desk

Retail Store Layout (Planogram)

25%

10%

3% 2%

5%

Empty Space for movement of goods 15%

Storage Space 40%

Warehouse Layout (Planogram)

• 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

• 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..)

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..)

• 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

• 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

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 casesOut-of-stock rate at end of order cycle = 5%

Out-of-stocks caused by product shortage at retail DC = 2%

Replenishment Index

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.

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

Thank you