Grp3 MIS Presentation Final

Implementation of Management Information System - PANTALOONS

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GROUP 3:Rishita Srivastava (22)Varun Kumar (24)Indrajit Chall (26)Divya Sethi (28)Renosh Mathai (30)

Pantaloon Retail (India) Limited (PRIL) was incorporated on October 12, 1987 as Menz wear.

Private Limited under the stewardship of Mr. Kishore Biyani. Headquartered in Mumbai (Bombay). From a humble beginning in 1987, Pantaloon has today evolved into

a leading manufacturer-retailer in the country. Pantaloon’s Chief Information Technology Officer, Chinar Deshpande

Open with 16 Pantaloon stores and 21 hypermarkets(Big Bazaar), 33 Food Bazaars,3 central, 2 Fashion Station, 2 all and 1 Mega store operational across the country.

The company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people.

It has been a remarkable journey for PRIL as it has evolved from a manufacturing to a completely integrated player controlling the entire value chain .

IT Implementation Areas Supply Chain Management – Pantaloons has used IT in SCM which includes systematic, strategic coordination of the traditional business functions and the tactics

across these business functions within the company. SCM of Pantaloons has to maintain a very large inventory hence, IT in SCM is crucial

for them

Purchasing Management - Non-proprietary and more flexible internet based e-Procurement systems. The purchasing department maintains a list of preferred suppliers for each category of material

User initiates e-procurement process by entering a material request and other relevant information

submitted to the purchasing department. verification of this the buyer transfers this data to the e-procurement

system and assigns qualified suppliers to bid for it purchasing department maintains a list of preferred suppliers for

each category of material

Demand Forecasting - Forecasting provides an estimate of future demand and the basis for planning and sound business decisions. The forecasting software used is Forecast Pro Software.

Forecast Pro, you provide the historic data for the items you are forecasting. It generates the customizable reports and graphs you need.

Performance Evaluation - The evaluation of performance of the suppliers, material etc. requires a lot of data and continuous evaluation is required. Due to large volume of information available it has become almost impossible to do this evaluation process manually and thus the role of IT (like Supply Chain Operations Reference (SCOR)) has been implemented in Pantaloons.

Supply Chain Operations Reference Model (SCOR):Basic Management Processes

Plan-Source-Make-Deliver-Return

Supplier’s

Supplier

Make Deliver

Source

Make DeliverMakeSourceDeliver SourceDeliverSource

Customer’s

Customer

Plan

Supplier (Internal

or External)

Pantaloons

Customer (Internal

or External)

Return

Return ReturnReturn

Return

Return

Plan-Source-Make-Deliver-Return provide the organizational structure of the SCOR-model

Inventory Management - Information technology allows firms to share demand and inventory data quickly and inexpensively. IT is also used in Material Requirement Planning and Manufacturing Resource Planning.

Chase Production System- capacity is adjusted in the demand pattern Master Production Scheduling- listing the exact end items to be

produced in a specific period Pantaloons follow inventory of 15 days

MIS System

Two centralized servers are used by the MIS viz.

(i) The main server and

(ii) The other a backup server which can take over from the main server with-in 5 min, if there is any problem .

Each of the servers has its own storage system with mirroring hard disks (15 hard disks storing the same info simultaneously).

The information is backed up continuously on CD’s everyday. The entire

system is backed by an excellent electrical wiring by JD International (electrical maintenance dept).

The recording of transactions at each of the purchasing counters is done using REM.

The database used for the storage is called POSH data base and this is an in-house production of pantaloon.

These transaction counters can capture credit card details and customer information of big customers (though all the information relating to all the customers is not collected as of now).

Receipts of transactions are cash, credit or in the form of Sodexho passes.

The Sodexho passes are sent to the HQ on a monthly basis and converted to cash.

The number of transactions made per day varies from 3000- 4000 on week days to about 5000 - 6000 on weekends. Any transaction recorded at each terminal is stored directly onto the POS database.

Oracle finance: a package from oracle is used for this purpose. The financials are sent to the HO on a daily basis.

PANTALOONS

Data Flow Diagram

At the Operational Control Level

They used Point of Sale (POS)

The term POS describe the system which is placed at the counter, consisting of both the hardware and the software components and it has evolved from the Electronic Cash Registers (ECR) system.

Information Systems at Pantaloons

Based on the above data we can say that the application of technology leads to increment in sales and reduction in expenses, thus causing a rise in profitability.

Effect of POS Implementation

Expenses Reduce, Sales Increase: How? Reduction in check out time Faster approval of purchases from the inventory of the retailer Capturing the product detail Software with related item or suggested item prompts Transaction Suspend Automatic store credits Capture of customer information Reconciliation Time Stamping Clocking In Period

Effect of POS Implementation

Training Initial Rise in Expenses Not every retailer can reap the benefits

Constraints in Implementing POS

It's user friendly, scalable, flexible, reliable and easy to maintain It enables the management to track individual transactions from the

POS to the general ledger Allows efficient data synchronization, and increases efficiency of

warehouse users.

Benefits of Implementing POS

At the Management Control Level

It is in Customer Relationship Management

This software helps them to answer the following question: Who are the most valued customers (MVC)? What do they need? What motivates them to purchase? Beyond transactions, how can one interact with MVCs in a

relevant and profitable manner? How can one customize aspects of the business to meet

customer’s needs and drive impact?


Role of Technology Collecting, housing, analyzing and disseminating this insight into

the right customer facing employee at the right time depends on technological infrastructure. If a retailer is able to identify its most valuable customers and anticipate their needs, it can leverage that information across marketing, sales and operations.

Effect of Implementation of CRM

Turning Data into Insight IT applications play a major role in this area. It comes from the use

of customer insights derived from capturing customer behavior and preferences.

These include past transactions, customer queries across multiple channels.

Understanding which customers are the most valuable to the business and what those customers need is where the data becomes actionable customer insight.

This enables the retailer to identify the most valued customers


Attention to Privacy Since CRM applications manage a huge amount of personally

identifiable information of the customers, sufficient measures should be taken to protect the data. Violation of customer’s privacy code erodes trust and may lead to significant brand dilution.


Better Customer Service Customer Support through call center Handling of Post Sales Service Building of long term relationships with the customer Campaign Management Effective Selling Processes

CRM Retail Software Benefits

At the Strategic Planning Level

It is being implemented as Store Management Tool (SMT)

Three building blocks of store management tool are taken into consideration:- Selling profitably Satisfying customers Motivating employees


Selling profitably depends on:- Products in the stock Informed store employees who can help customers pick the right

product Point of sale systems with right pricing strategy and promotion

information.

Effect of Implementation of SMT

Customer satisfaction can be ensured by: Providing products that the customer wants Swift checkouts Store associates being at the right place at the right time

Sales associates can be motivated by: Proving them the right tools and adequate job training Empowering them to make decisions Providing them some control over their work through flexible working

hours and appropriate benefits.


Store Management Software SAP solutions is a company which makes such store management

processes. They have been used in Pantaloons since its inception. These systems must quickly gain fast and reliable, accurate, and insightful

customer information in many ways, including: Quick receipt of payment monies Kiosks where customers can view information on products or store

services Mobile point-of-sale devices for upsell opportunities, used by sales

associates in the store while showing other products, or anchored in changing rooms


ERP- Pantaloons Implementation was done by the SAP team with help of Novasoft which is based

out of Singapore. Three Phases First phase - blueprinting existing processes and mapping them to the desired

state. Second phase - SAP platform was developed with the help of Novasoft’s template

which was predefined by SAP after evaluation of Pantaloon’s needs and expertise in retail solutions.

Third phase -stores to switch over to the new system and for current data to be ported. Before the implementation, all the data was unorganized. This data had to be migrated to the new SAP application.

PANTALOON MODULE

MAP (Merchandise Assortment Planning)

Pantaloon Target

Automated Replenishment System

Automated Replenishment System provides a powerful mechanism for implementing demand-pull replenishment processes.

Advanced automatic store replenishment systems are IT-based software systems that automatically decide when to order which quantity.

Integrates with the POS equipments and then prepares orders Integrates with Inventory control system, product receipts and

e-procurement

Advantages - ERP Configuration and Scalability Phased Implementation Support Support for Advanced Functionality Workflow Automation and Enterprise Process

Management Technology and Application Integration Graphical User Interface Support Optimal Utilization of Resources Reduction in Overhead and Inventory Timely Responsiveness

Challenges- IT structure

Too much of dependency on main server during the peak sales time

Lack of ERP training Improper Customer Relationship Management System

(manual entry of the data often leads to discrepancies.) Erroneous billing structure at e-bicounters as most of

the time new offers are not updated regularly.

Recommendations

Installation of Electronic Feedback system Renting the server during peak time Annual Employee training programs

THANK YOU

Documents

Grp3 MIS Presentation Final