156 shop

● LEARNING● HOSPITALITY ● ENTERTAINMENT ● KIDS CARE● RETAIL

www.saharaqcentres.com

A business initiative by

• LEARNING● HOSPITALITY ● ENTERTAINMENT ● KIDS CARE● RETAIL



SAHARA Q SHOP RETAIL TRAINING

RAHUL SINGHNISHANT KALRARAVI GUPTA




AgendaINDUSTRY OVERVIEWINTRODUCTIONNEW PRODUCT DEVELOPMENT BUSINESS EXCELLENCEMARKETINGFIELD OPERATIONSRETAIL ACCOUNTANCYWATERPRODUCTPOINT OF SALEBUSINESS INTELLIGENCEPURCHASEQUALITYHoReCaSUPPLY CHAIN MANAGEMENTRETAIL OPERATIONS




INTRODUCTION




INTRODUCTION = Q = Quality = Purity = Our Mission

• Sahara Q Shop is a mega quality consumer merchandise retail business from Sahara India Pariwar. Its aim is to provide pure, and adulteration-free products to the esteemed citizens of the country.

Sahara Q Shop's unbeatable advantages

• Pure, Adulteration-free and Quality products.• 100% disclosure policy.• 100% right weight/quantity.• Wide range of products consisting of:

– Staples– Processed Foods– Personal Care Products– Beverages– Home Care Products







INDUSTRY OVERVIEW




3.6

Consumer expenditureestimated to be USD3.6 trillion

by 2020 vis-à-vis USD1.0 trillion in 2010

Rising income and demand forquality products to boost consumer expenditure

2010 2020E

India consumption expenditure (USD trillion)

1.3

Indian retail one of the fastestgrowing markets in the world

due to economic growth

Retail market in India to reachUSD1.3 trillion by 2020 from

USD0.5 trillion in 2012

2012 2020E

Indian retail market size (USD trillion)

220CAGR: 30.0%Favourable government

policies to boost investor confidence and thereby

investments across modern retail formats

Modern retail market to expandto USD220 billion by 2020 from

USD27 billion in 20122012 2020E

Indian modern retail market size (USD billion)

Source: PWC, Economic Times, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate, E - Estimate

27

CAGR: 12.7%

0.5

CAGR: 13.9%

1.0




100CAGR: 7.6%

FMCG market expected toincrease to USD100 billion

by2025 from USD12 billion in

2006

Robust consumption, ruralmarkets to augment

FMCGmarket 2006 2025E

FMCG market in India (USD billions)

67,100CAGR: 19.6%

Increasing participation fromforeign and private players to

boost retail infrastructure

Modern retail stores projectedto reach 67,100 by 2016 from

11,192 in 20062006 2016E

Modern retail formats (store counts)

8,500

Rising number of tier-2 and tier-3 cities to enhance

supermarket space in the country

Supermarkets to total 8,500 by2016 from 500 in 2006

2006 2016E

Supermarkets in India

Source: indiaretailing.com, Aranca ResearchNote: CAGR - Compound Annual Growth Rate

CAGR: 32.8%

500

11,192

12




Consolidation

Expansion

Conceptualisation

2010 onward

2005–10Large scale consolidation

Movement to smaller cities and rural areasMore than 5–6 players with revenues more than USD700 million

•

•Substantialinvestment commitments by large Indian corporate

Entry in food and general merchandise categoryPan-India expansion to top100 cities Repositioning by existing players

•1990–05Initiation

•

Pure play retailersrealised the potential of the market

Most of them in apparel segment

•

Large scale entry of••international brandsFDI in single-brand retail up to100 per cent from 51 per cent Approval of FDI limit in multibrand retail of upto 51 per centRise in private label brands byretail players

Sourcing and investment rules for supermarkets were relaxed

Pre 1990s• •

• Manufacturersopened their ownoutlets

• •

••

•

Source: Technopak Advisors Pvt Ltd, Firstpost, Aranca Research




given brand, certified product

many product lines of different

24X7 access, saves time, and

Source: Aranca ResearchNote: IT- Information Technology

Highly convenient as it provides

ensures secure transaction

It is an online shopping facility for buying and selling products and

services; the facility is widely used for electronics, health and wellness

e-Trailers

One-stop shop for customers;

brands on display

Display most of convergence as well as consumer/electronic products, including

communication and IT group

Convergence retail outlets

Customers have more choices as many brands are on display

Focus on particular product categories and carry most of the brands available

Multi-branded retail shops

Complete range available for a

quality

Exclusive showrooms either owned or franchised out by a manufacturer

Mono/exclusive branded retail shops







Market size over the past few years (USD billion)The retail sector in India is emerging as one of the largestsectors in the economy

518By 2012, the total market size reached USD518 billion,thereby registering a CAGR of 7.0 per cent since 1998

368CAGR: 7.0%

278238

204201

1998 2000 2002 2004 2006 2008 2010 2012

Source: Deloitte, indiaretailing.com, Economist Intelligence Unit,

Euro monitor, Aranca Research

424

321




Market break-up by revenues (2012)

Food & Grocery11%

3%3%

4%

5%

Appareal

Mobile and telecom

Food service

Jewellery6% 60%Consumer Electronics

8%Pharmacy

Others

Organised retail penetration (2012)Contribution to organised retail (2012)

8%Food & Grocery11%

20%Appareal

Unorganised retail penetration Mobile and telecom

Food service

33% Jewellery8%

Consumer ElectronicsOrganised retail penetration

6%Footwear

7%

92% 11% Others

Significant scope for expansion in organised retail

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2012 2020

Unorganised retail penetration Organised retail penetration

8%20%

92%80%







PRODUCT KNOWLEDGE







PRODUCT KNOWLEDGE

Products profile

Food Home care

Personal care Q Water CDIT

Classic

Special

Value

Value: Product in this variety is economically priced compared to other two varieties

Special: Special is of medium variety priced between the other two varieties

Classic: Classic is of premium variety of Q Shop products.




Unique points of Q Shop products

In staples sourcing is from single source

Three layer of quality check is followed in product manufacturing,

Sahara Q Shop Quality Advisory Board comprises 50 well-known scientists, 250 senior quality advisors and 500 associate quality assurance executives.

100% disclosure policy in staples

100% right weight/quantity.




Staples

The best quality wheat goes through a multi-stage cleaning process before it is ground in

modern hygienic chakki plants to obtain perfect

texture, nutritional values, flavour and

taste

Sahara Q Refined Soyabean Oil is

extracted from selected quality soya seeds

using latest technology which adheres to our promise of delivering

best quality and unadulterated oil

enriched with Vitamin A, D2 and E to keep you

healthy.

• M-30/31 Grade sugar with no harmful

chemicals• Hygienic - untouched

by hand• Free flowing sparkling

white grains• 100% vegetarian

• Best quality, unadulterated

Uniquely processed & hygienically packed.Sahara Q Pulses are

carefully selected from the finest quality

produce and adhere to our promise of

delivering best quality.Storage Conditions:




Home care

Washing Powder With Lemon ExtractsWater Softening

Technology for Clean And Fresh Smelling

Clothes

With Sandal, Champa, Sugandham, Pooja &

Divine FragranceThe pure and natural aroma of Q Agarbatti fills your environment

with bliss and calmness. It’s five unique fragrances

elevate your mind and soul and bring positive energy in your home

DISHWASH ACTIVE LIQUID WITH LIME &

VINEGAR

Dish Wash Bar is formulated with lime

which enables removal of oil and grease, while

the vinegar enables removal of bad odour.

Advanced Detergent Cake with power of Optical Whiteners & Ultramarine Blue for

sparking white cuffs & collars.




• It is a unique soap blended with fresh milk,

pure almond oil & saffron to provide you a young, healthy & radiant skin

tone.• Enriched with Kesar, Milk & Badam Oil for Perfect Glowing skin.

The rich combination of 12% Amla extract and Olive oil promotes hair

growth and pigmentation.In addition to preventing premature

graying, it also strengthens hair roots, thereby preventing hair

fall.The result is rejuvenated hair with a rich, natural shine and

silky texture. It also prevents the splitting of

hair at ends.

Q Super White toothpaste is carefully formulated to offer the

best protection from plaque. It is ideal for gum protection and thus gives a complete Dental Care.

• It has special skin toners for tough male skin, which fights to

decrease hyper pigmentation.

• It also provides protection from UV rays.

Personal care




Water and CDIT

Q Natural water has a distinctly sweet

taste due to its fine balance of minerals

and virgin origin. The heavenly climes of the

Himalayan foothills, its valleys and the rich flora impart a characteristically

fresh sweetness to the water.







NEW PRODUCT DEVELOPMENT (NPD)




Parameters considered for launching a new product

Growth in that area

Margin on product

Filler product needed in that category to complete the family of products




Process of developing new product

Identification of category of product

Unique elements identification (eg. anti dandruff , shiny hair

etc.)

R & D team and Product team check feasibility of such

product.

Product gets formulated and dry run happens

Product sent to external lab to check for harmful chemicals

etc. again

Internal sample ( with actual pckaging ) sent to selective people( About 50) to give

feedback

Atwork and physical structure gets finalized in tandem with product and marketing team

commercial run/Manufacturing

starts




Challenges

No soft launch or test market before launching as done by other such companies

No clear procedure of finding rationale to launch new product.

Most of the products seem similar to competitors

No way to get extensive primary data to get clear picture to launch new product and it’s market acceptability and size of the market.

Product launch time is very less 1-1.5 months.

New product launch methodology is reactive in nature rather than proactive , completely sales driven rather than sales driving.




BUSINESS EXCELLENCE




Business excellence is the unit of sahara Q Shop that laydown the foundation/processes for the company to create an environment that drives the company toward the path of success.

Following are the key areas that comes under business excellence

Process standardisation/designing

Process compliance/control

Process improvement




For Q Shop the current focus is on process standardization

QualityProduct team

Quality team

QVT ( Quality vigilence team)

It’s closely related to quality it has created 3 layers of quality process in Q Shop




Mission , vision and Quality policy

MissionQ=Quality=Purity=Our mission

Quality PolicyWe at Sahara Q Shop are committed to create practices better than the best and Inspiring people to join and build a world class organization at every level to lead with authority, accept accountability and executive organizational strategies by creating a one stop shopping solution for consumers. Our primary objective is to offer unadulterated best in class quality products at the most competitive prices in consumer packaged goods , organic range of foods, consumer durables , lifestyle and luxury segment.

Vision

We want to build strong and resilient India by –

1. Delivering customers unadulterated and quality consumer products at competitive prices.

2. Following 100% disclosure policy of ingredients on Sahara Q Shop products

3. Bring in innovation on Sahara Q Shop products at great speed




Challenges

Targets are given verbally , no consequence management

Process compliance needs improvement

Store inventory not known to sales person

Expiry in process food-15%

Expiry in staples-75-8%

CDIT expiry might come in bulk in near future

No clear policy on expired material, occupy large space in warehouses

Information flow is erratic







MARKETING




Functions

Functions of sahara’s marketing team

Give inputs for new products

Launch campaigns for various products

Market research

Give support to products near expiry by promoting them

Handle ATL and BTL planning




Initial market research

• Identify buying trends and consumption pattern of Indian customers

• Capture regional eccentricities in buying behavior

• Study patterns specific to different income groups

Following were the objectives for market research when business started




State No. of Respondents State No. of

Respondents State No. of Respondents State

No. of Respondent

s

HP 62 Arunachal 5 Chattisgarh 839 AP 1168

Chandigarh 14 Assam 461 Goa 15 South 1168

Haryana 637 Bihar 249 Gujarat 1209

Punjab 247 Jharkhand 1249 MP 2421

Delhi 122 Orissa 2339 Maharashtra 447

Rajasthan 3961 Tripura 53 West Zone 4931

UP 441 West Bengal 863

Uttarakhand 235 East Zone 5219

North Zone 5719

All India 17040

• Families with family size of more than 15 not considered• families with per capita consumption of more than 10 kg of atta not considered, as per national sample survey, highest is rural punjab at 9.2 kg• families with per capita consumption of more than 5 kg of dal not considered• families with per capita consumption of more than 5 kg of oil not considered• families with per capita consumption of more than 15 kg of rice not considered, as per national sample survey, highest is rural orissa at 13.92 kg

Sample universe captured




National figures

50.5%49.5%

Occupation

BusinessService

19.46%

31.42%20.26%

10.02%

18.83%

Monthly Income

Less Than 50005000 - 1000010000 - 1500015000 - 20000Above 20000

• The monthly income of 50% respondents is below Rs. 10,000 • There is an equal divide between service & business class

- Demographics




Monthly Income

National North East West South

Less Than 5000

0.194608256107835

0.251987983742712

0.17929292929293

0.169043190741889

0.220880069025022

5000 - 10000

0.31423757371525

0.23820462979325

0.37917637917638

0.322174002893161

0.313201035375324

10000 - 15000

0.202611625947767

0.167697473051776

0.220668220668221

0.208100847282497

0.235547886108714

15000 - 20000

0.100192562281863

0.13659657183248

0.0701243201243201

0.0940276916718333

0.0655737704918033

Above 20000

0.188349981947287

0.205513341579785

0.150738150738151

0.206654267410622

0.164797238999138

3%

13%

23%

33%

• 55% respondents in East region earns less than Rs. 10000 per month• North & west, at 21%, has the highest percentage of respondents earning more than Rs. 20,000




Conclusions

In 88% of the families surveyed, the male of the

house goes for grocery shopping

A substantial number of households surveyed

depends on home produced Wheat & Rice(21% & 15%

respectively)

UP has the highest number of households using home

grown staples followed by Himachal Pradesh &

Rajasthan

UP has the highest per family consumption of atta at 29 kg per month, whereas Punjab has the highest per capita

consumption at 5.5 kg

Packed atta has quite low penetration across India

barring few states like Punjab, Delhi

Arhar dal has 64% share in customer basket, though in North it’s at 41%. Chana Dal

has 34% share in North owing it to states like

Rajasthan & HP

Against the national average of 3.76 kg of family

consumption, East zone averages around 4.08 kg followed by West at 4.04

Gujarat has the highest consumption of edible oil at

7.21 kg per family against the national average of 4.81 kg

Refined oil is the most used oil in India with 55% share,

though in North & East zone has high percentage of

Mustard Oil at 42% & 54% respectively




Conclusions

Whole spices are preferred by customers over powdered ones

except in West zone where whole spices have quite low

penetration at just 18%

East & South are the largest rice consuming markets, with

family consumption of 29 kg & 32 kg respectively against the

national average of 17.4 kg

In high consumption markets of rice, close to 70% customers prefers to buy rice below Rs. 25

per kg, wherein customers in low consumption markets pay

a relatively higher price

The penetration of breakfast cereal is quite low in India, East

zone has only 15% customer buying breakfast cereals




Marketing plan development

• Corporate communication team gives a marketing plan and it’s costing

• Again Q Shop marketing team brainstorm on that and gives it final shape in terms of costing and media used

• Marketing team also manages BTL plans as and when new offers come from business intelligence team

Sample of the print media plan sheet:

Name Edition Language Size Hue Creative GT Focus

Dainik jagran

All UP+UK Hindi 80cc half Color Product selling there

Yes




Marketing campaign launching

This information marketing team gets from the sales dataParameters used in deciding which product and area to choose for building a campaignFor example• Place: UP west• Product name: Amla hair oil• Reach of the product: Medium• Buying behavior: Local market




Some of the promotional material

.




FIELD OPERATIONS




Field operations training was

divided into two parts:

• A brief overview of business by Sh. Manish Jain Ji.

• Visit to a CoCo (Company owned company operated retail store)




Brief overview Indian grocery market is about: $450 billion

Q Shop market share is currently miniscule hence there is a lot of growth opportunity.

In simple language Sahara Q Shop is a FMCG cum retail company (as they are using multibrand product in retail outlets also)

Channels through which Q Shop sells it’s products:

• General trade-Sells it’s products to distributors which in turn sells it to kirana stores etc.

• Retail stores-Q Shop owns some retail stores and operates them called CoCo. Q shop sells it’s products to various retail stores owned by other people called FoFo( franchisee owned franchisee operated),CoRo(company owned retailer operated)

• QMS-Q mobile shop is a moving vehicle eg. about 87 vans , that have different routes which sells Q Shop products at various pre-determined selling pit stops in their routes.

• E-commerce-E-commerce channel is the online store of selling Q Shop products.

• CCC-CCC is city connect centre , new channel brought into Q Shop .It’s a warehouse cum retail store came into being to expand Q shop reach and also decentralize the warehousing hierarchy.




What is retail ?

Retail is selling in smaller quantities of products directly to the customers.

Retail is selling in smaller quantities of products directly to the customers.

Q Shop retail numbers:

• Number of states-15

• Number of cities-507

• Number of CoCo-171

• Number of FoFo- 1077




CoCo store in Banisquare , sector -47, Gurgaon

Some empty shelves Offers at store

Lower shelves

Visit to CoCo

Opening time: 8:30 AM

Closing time:9:30 PM




Store operationsWays of accepting payment at the store• Cash• Credit Card• Sodexo coupons• ChequeActivities at the store

RECEIVING

PRODUCTS

FILL THE

SHELVES

HELP

CUSTOMERS

CREATE BILL & COLLECT PAYMENTS

PRODUCTS ARE

RECEIVED FROM SAHARA QSHOP

WAREHOUSE/ DC

Products are placed attractively

Shelves/racks should always be full, neat and clean

Smile

Help customers

Never argue

Be polite and courteous to customers

Smile

Create bill for all items purchased

Present the bill

Collect the payment

Thank the customer

Smile




Stock filling procedure at the Store

Peridically e-mail sheet comes to the store how much stock of various

SKUs is teher in their warehouse*

Sheet is filled up with the required items and sent to head office.

Processing of procuring material etc. is done in head office

Ultimately material is delivered at the store

2 Copies of GRN(Goods receipt note) are made one for the store

and one for the warehouse(Stamped GRN), if

material is short /expired mentioned on warehouse GRN itself




Challenges1. No physical inventory check done till now2. Delivery of material is many a times delayed3. No planogram followed4. Too many registers( about 17) at the stores for various

documentation5. Material before 45 days of expiry date must be received by the

stores but in other such company that time is about 60 days.




RETAIL ACCOUNTANCY




Retail Accountancy is mainly supported by POS system whose data is integrated into SAP for reconciliation:

• Cash CollectionMoney is collected in four forms:

– Cash– Cheque– Credit Card– Sodexo Coupons




QMSReport

Cash

CMS

Cashier

Area Executive/Regional Manager

Commercial Executive

Transfered to Bank via CMS system

Cash Collection

FOFO ModelFranchise Owner

Area Executive

Transfered to Bank via CMS system

Pays

Cash




Account Receivables

Store

Manager

•Enter Sales in POS and to mail to finance every day in exc el format

• Transfer cash through CMS and to update finance about the same

• Sodexo Coupons are sent to finance team once every month

SAP Team

•Update Cash sales in SAP against SAP id of each store

•Credit Card entry in SAP to be done by a team in Mumbai

Finance

• Reconcile cash sales , credit sales with the bank accounts and expenditure • Sudexo coupons

are to be reimbursed with the concerned company

• In case of any discrepancies , finance executive has to call store manager for the corrections

• Update SAP after final reconciliation




Account Payables

Purchase

• Release Purchase Order(PO) to Vendor according to negotiated rates and terms

Vendor

• Send invoice along with goods to warehouse

SCM

• Receive goods in warehouse, prepare its Good Receipt Note ( GRN) and enter in SAP

• Send GRN and invoice to finance

Finance

• MIRO reconciliation is done with the help the following documents• Invoice• PO Copy• GRN Copy• Transport Copy

• Need to check rate and quantity in invoice is according to Purchase order

• Payment is released according to credit terms

• Update data in SAP after the reconciliation




WATER




WATER

Water as a product has a separate supply chain team ( Production/ Transport/ Operations)

Natural Mineral Water • Available in 250 ml,

500 ml and 1 ltr bottles• Nature water is

filtered without any contaminants, natural or man made

Package Drinking Water• Available in 250 ml,

500 ml, 1 ltr and 2 ltr bottles and jar of 20 ltrs

• Treated through a seven step purification process

Soda • Available in 600

ml bottles• It has been

introduced quite recently




• Contribution of Package drinking water to total revenue from water is 60% while that of Natural Mineral Water is 40%

• Channels for water SCM is different from other products. They are distributed mainly though channel 30 (Distributor) and channel 40 (Stockist). It is also distributed through Retail channel, though demand is very less in it

• Current month sales(June’2014) through water division is around 6 Cr

• There are around 2000 Distributors all over India

WATER




Payment is received from distributor against

order

Order is placed to plant. Transport Arrangement

to be made

Stock is transported from vendor to distributor end

Invoice from vendor and distributor receiving is

sent to finance

WATER SCM




PRODUCT




• Production of the goods according to demand provided by Supply chain team. They

• Coordination with vendor at external end along with purchase and quality team internally to endure product is manufactured in right time with right quality and at right price.

• Coordination with marketing and legal team for art work of the labels used for packaging of the materials.

• Fix raw material and packaging material cost with vendor and also negotiate best processing cost with them

• Product team is divided according to type of product- Food and Non Food. Food team is further divided into Staples and Processed foods whereas Non Food is divided into Personal Care and Home Care

Functions of Product Team




Process FollowedSchedule demand from SCM

Requisition of Performa Invoice(PI) from Vendors

RM Cost and Packaging material are fixed . Vendor to quote processing cost

PI to be send to purchase ( min 3 quotations ). Selection of vendor to be

done

Production executive based at plant is responsible for production

Quality team is intimated for quality checks at production site

SCM is intimidated for logistics arrangements




POINT OF SALE




POS ArchitectureS POS S POS

S POSS POS

S POSInternetInternetC POSC POS

• Software purchased by Sahara Q Shop from Polaris Systems. It is used to register Sales and other details though all company and franchise stores throughout India

• It works on client- server architecture • Client (SPOS known as Store Point of Sale) is deployed at every

store • Server (CPOS : Central Point of Sale) is deployed at IDC

Mumbai. Data is stored in servers located in IDC Mumbai




Store POSSPOS is deployed in form of Retail XL interface. It has three basic

functions:• RXL Base

– It is used for recording inward movement of goods into the store from warehouse

– Inward material will be added to inventory of store• RXL Pos

– Its purpose is to do billing and record data – Store Inventory gets updated according to sales

• RXL Viewer– It is used to generate reports : daily sales, store inventory

etc• At QMS, mobile machine is deployed which has in-build SIM

cards and thus connected to CPOS using GPRS




Client POS• CPOS is deployed at IDC Mumbai and it is

connected to all SPOS present in all stores/QMS through internet

• Updating price/promotion details – If price of a particular item gets changed, it is

updated in CPOS which will sync all SPOS. CPOS will make a tag which is transferred to all SPOS through internet. It has two files :

• .txt - > tag information• .zip -> all details




Client POSRegistration of New Store/Franchise

– For registration of new franchise/store, Business development or Area Manager mails to project team which further mails it to IT team with the following details :

• SAP CODE• Store Name• Store Address• State• PIN Code• Delivery Plan ( Warehouse from which store will be supplied)

– IT team mails all details to representative from Polaris Company for new license. Polaris representative to perform following functions :

• Creation of new license• Database creation• System configuration ( Remote connection)




BUSINESS INTELLIGENCE




Objectives• Keep management updated about market

trends• Analyze sales of different type of products and

channels • Suggest to the management steps that need

to be taken to improve profitability




60%10%

15%15%

Sales

Staples Non FoodProcessed Foods Water

• To penetrate into rural market, new channel -> Super stockist has been added who will further distribute to sub distributors in rural areas. Margin given to super stockist will be (X – 5)% where X = margin from PTD (price to distributors)

• Focus will be now on few products and SKUs. Personal Care contribution to sales in quite low, so most of products (except soaps and oil) are in process of elimination. Out of earlier 349 products , now only 69 SKUs and 19 products will have focus in General Trade category

General Trade




General Trade• A new channel CCC (City connect centre) has

been added to improve efficiency and reduce overhead costs. Its salient features are : – It is a non-conventional distribution channel– Business Development and Distribution of a particular

area will be managed by CCC only– Reduction of number of warehouse as it will decrease

turnaround time plus there has been decrease in number of products. Right now number of warehouse in UP has been reduced from 11 to 7 with opening to 8 CCCs. Target is to have 3 warehouse and 18 CCCs all over Uttar Pradesh




Retail• We are turning our stores into Multi brand

stores. We will allow our stores to sell non competing products of other brands. It will increase footfall as stores will be able to fulfill complete basket of a consumer

• No of products has been reduced to 60 in number and having 224 SKUs




PURCHASE




Functions of Purchase• Procuring Materials: Procure all necessary materials

needed for production or daily operation of the company or government organization. In a retail environment, the purchase department makes sure there is always sufficient quantity of product on the shelves or in the warehouses to keep the customers happy and keep the store well-stocked.

• Evaluating Price: To evaluate whether it is receiving these materials at the best possible price in order to maximize profitability. Purchase department may communicate with alternate vendors, negotiate better pricing for bulk orders or investigate the possibility of procuring cheaper materials from alternative sources as part of their daily activities.




• Paperwork and Accounting: Purchase department handle all of the paperwork involved with purchasing and delivery of supplies and materials. Purchase ensures timely delivery of materials from vendors generates and tracks purchase orders and works alongside the receiving department and the accounts payable department to ensure that promised deliveries were received in full and are being paid for on time

• Policy Compliance: Purchase departments handle all of the paperwork involved with purchasing and delivery of supplies and materials. Purchase ensures timely delivery of materials from vendors generates and tracks purchase orders and works alongside the receiving department and the accounts payable department to ensure that promised deliveries were received in full and are being paid for on time

Functions of Purchase




PURCHASE ORDER• Purchase orders are normally accompanied by terms and conditions which

form the contractual agreement of the transaction• The supplier then delivers the products or service and the customer records

the delivery (in some cases this goes through a goods inspection process) • An invoice is sent by the supplier which is cross-checked with the purchase

order and documents specifying which goods have been received• The payment is then made and transferred to the supplier TYPES OF PURCHASE ORDER• Standard - a onetime buy• Planned - an agreement on a specific item at an approximate date• Blanket - an agreement on specific terms and conditions: date and quantity

and amount are not specified

Purchase Order




Purchase OrderRecognition and description of need

Transmission of need

Selection of Source to satisfy the need

Contracting with the accepted source

Following up with the source

Receiving and inspecting material

Payment and closure of the case




• A purchase requisition is a request sent to the purchase department to procure goods or services. It is originated and approved by the department requiring the goods or services.

• Typically, it contains a description and quantity of the goods or services to be purchased, preferred make, a required delivery date, account number and the amount of money that the purchase department is authorized to spend for the goods or services.

• A purchase requisition is owned by the originating department and should not be changed by the purchase department without obtaining approval from the originating department. This important distinction (e.g. essential control) is not clearly defined in some of the more popular integrated procurement software systems on the market today.

• A purchase requisition is not a purchase order and therefore should never be used to purchase goods or services or be used as an authorization to pay an invoice from a supplier or service provider

Purchase Requisition




QUALITY




Quality management ensures that an organization, product or service is consistent. It has four main components: quality planning, quality control, quality assurance and quality improvement

How SQS achieves Quality

Quality System Design

Product Design

Selection of Vendors

Quality of Raw Materials

Processes

Manufacturing Control

Post Manufacturing Control

Inspection and Analysis

Complaints Handling and Improvement




• Principals/Standards based on HACCP, ISO 9001 (QMS), ISO 22000 (FSMS), BIS, FSSAI norms

• Product Specific Manuals• Includes process steps, specific HACCP Monitoring plan, Process flow diagram,

RM-FG specs, Test methods, Formats, sampling plan & SOPs• Covers Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP),

OPRP (Operational Pre-Requisite programs), CCP (Critical Control Points)• 100 point vendor selection criteria to assess vendor facility based on FSSAI

recommendations.• Built in QI (Quality Index) that captures & analyses data related to

Raw/packaging Materials, Process, Package & Finished Product for each Product & Batches

• SQMS includes our labs based in Sahibabad, LKO, Patna equipped to conduct physical, chemical, microbial test & adulteration

• The SQMS Lab manual covers test methods which are based on FSSAI, BIS, AOAC guidelines

Sahara Quality Management System




• At Sahara, each Vendor is selected post audit, based on 100 Point Checklist on guidelines of FSSAI, ISO – 22000, ISO - 9001 & Global food safety standards (BRC norms)

• The checklist covers requirements for Quality & Food Safety Systems & is divided into CRITICAL, MAJOR & MINOR categories

• Acceptance criteria is a score of Min. 80% with all CRITICAL requirements complied100 point audit Checklist covers• Compliance to legal/statutory requirements• Infra-Structure• Quality Control• Product Protection• In-coming material control• Processing Control• Final product Control• Cleaning, sanitation practices• Employee Hygiene• Pest Control• Training• Quality Assurance• Warehousing and Transportation practices• Corrective and preventive action plan• Weights and Measures

100 point audit Checklist




For Product design following points are taken into considerations• Shelf life studies• Product Packaging Compatibility• Complete product analysis including adulterants• Nutritional ClaimsSelection of Vendors• Following steps in order are taken before finalizing any vendor:• Self-Assessment based on 100 point checklist by Vendor packer.• Initial Audit by QA team at vendor site & share the assessment sheet with

vendor• Preparation of Audit finding summary report with critical and major gaps for

corrective action.• Follow up for the corrective action taken by vendor• Verification for the closure of gaps• Site approval and agreement• Trials and commercial production• Continuous monitoring and improvement

Product Design and Selection of Vendors




• Raw material and packing quality assurance• Fumigation of raw material in case of staples• GMP Verification & Pest Control• On-Line testing & monitoring• Finished product quality control• Storage of finished product• Terminal inspection• QC release note• Dispatch of the Final Product

Quality in Manufacturing and Post Manufacturing(1/3)




All dispatches to warehouse are post Positive release by Quality Assurance

• FG samples are sent to Sahara Laboratory for final analysis for checking of Physical, Chemical, Micro- Biological & different type of Adulterants

• FG ready is checked for sealing, coding, count, weights in Terminal inspection

• Product QC release is based on satisfactory results of FG test Lab report and terminal inspection.

• If Samples fails in Sahara Lab test reports, the vendor packer & product team shall be informed and suitable corrective and preventive actions are initiated





Additional Tests done by Sahara Q-Shop, not specified in FSSAI• Microbial standards in corn flakes/biscuits/papad/namkeens• Limits for acidity, pH, Salt in Pickle• Moisture, Total ash, fat, pH in biscuits• pH in Ketchup• Fat, Salt, Saturated fat in vermicelliAdulteration tests done by Sahara Q-Shop• Addition of non-permitted color, use of rancid oil (presence/absence

tested) in Chips• Addition of non-permitted color (presence/absence) in jams• Usage of rancid oil & argemone oil (presence/absence) in noodles• Random checks for addition of Cane Sugar syrup/invert sugar (C4 Sugars) in

Honey• Synthetic colors in turmeric, besan, namkeens• Cotton seed oil, castor oils etc. in mustard oil• Argemone seeds in Rai, khesari daal in pulses





HoReCa




Horeca (or HORECA) is the sector of the food service industry that consists of establishments which prepare and serve food and beverages. The term is a syllabic abbreviation of the words Hotel/Restaurant/Caterers

HoReCa

Hotels

• 1980 units• 21% Growth Rate

Restaurant

• 1.5 Million Outlets

• US 13 $ Billion• 48%Growth Rate

Caterers

• US 5$ Billion• 20% Growth

Rate




HoReCa Channels

HoReCa

Direct

Institutional

Distribution




HoReCaCompetition in the Market

Competition in the Market

Internal- Specialist- Wholeseller- Importer

External- Metro- Carrefour- Best Price

Challenges Faced Internal• Sourcing• Warehousing: - not able to locate the warehouse• TechnologyExternal•Delivery: - Delay in delivery• Receivables:- Delay in Payments• Market Awareness




HoReCa SegmentsCompetition in the Market

40%

30%

30%

Max Selling Products

Oil Sugar Rest

50%30%

20%

Segment Revenue

Caterars Hotels Restuarants




Supply Chain Management




Supply chain management (SCM) is the management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.

Value Chain Model in Sahara Q-Shop

SCM

Inbound

•Sourcing of Vendors

•Purchase of Raw Materials

Operations

•Manufacturing of Goods

•Quality Check

Outbound

•Delivering it to warehouses and Customers




SCM Structure

Sales Projection

Production Plan

Category or Product Team Master P.O.

Inventory Team

P.O. Logistics Vendor

Warehousing

Customer




• Bakoli, Delhi NCR.• Kanpur, U.P.• Jaipur, Rajasthan.• Bhiwandi, Maharastra for West India.• Muzzafarpur, Bihar for East India.• Hyderabad, Andhra Pradesh for South India

Mother Warehouses




Retail Operations




Sales and Distribution in Retail• Sales Target is given to COCO stores based on the 4 months

average sales of the store.• Whereas, the incentives to FOFO store is given based on the

sales volume– On and above the sales of INR 200,000 the PTD or price to

distributor is given to the franchise. Otherwise PTR (Price to Retailer) is given to the franchise on below INR 200,000 sales.

Challenges • Pending GRN• Products in POS not updated in terms of price• MRP differences• Stock Availability

Retail Operations




Ways to use learning in Q Centres

Q CentresQ Shop

Forward integration

Q Centres Q Shop

This would be of great help in creating synergy between Q Shop’s forward integration into Q Centres in terms of sales targets, supply chain, relationship management, finances etc.




Quality: Q Centre can inbibe best practices in terms of Quality in QCentres to make a whole some Q umbrella brand in terms of quality and consistency. Retail operations and planning/Supply chain : Operations and supply chain in Q Shop can be used in Q Centres in terms of sourcing,logistics. Purchase/Accounting: We can use Q shop procedures interms of purchase and accounting in Q Centres also.

Marketing: Way of working in terms of coordination with corporate entities can be used in marketing of Q Centres.HoReCa: Q Centres interms of business with bulk buyers such as cateres,Institutions etc. can get practices and procedures from HoReCa of Qshop which would help us is getting a ready made template in terms of how to approach and close the deals. IT : In terms of IT we can use existing infrastructure of IT in Q Shop in our own Q Centres and also collaborate with them in terms of practices and procedures. Revenue generation: We can also take the existing practices in terms of sales targets areawise , vertical wise etc.

Ways to use learning in Q Centres




THANK YOU AND SAHARA PRANAM

Documents

156 shop