Operation Management Of Logistics And Supply Chain Department At Pantaloons

BIJU PATNAIK INSTITUTE OF IT & MANAGEMENT STUDIES

MBA

SUMMER INTERNSHIP REPORT 2018-20

STUDENT NAME SWAGAT LENKA FACULTY GUIDE PROF.MANOJ KUMAR ROUT

BPUT REGD. NO 1806258172 CORPORATE GUIDE MR.TAPAN MOHAPATRA

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A PROJECT REPORT ON "OPERATION MANAGEMENT OF LOGISTICS AND SUPPLY CHAIN DEPARTMENT"

BY SWAGAT LENKA UNDER THE GUIDANCE OF PROF. MANOJ KUMAR ROUT SUBMITTED TO BIJU PATNAIK INSTITUTE OF IT & MANAGEMENT (2018-2020)

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PATIA, BHUBANESWAR – 751024, ODISHA Phone: - 07438000111, 9040003344 Email: [email protected], [email protected]

DECLARATION

This

is

to

certify

that

research

study

entitled

“OPERATION

MANAGEMENT OF LOGISTICS AND SUPPLY CHAIN DEPARTMENT” is prepared by Mr. SWAGAT LENKA under guidance and supervision of ASST. PROF. MANOJ KUMAR ROUT during Academic session of 2018-2020 as a partial fulfillment of M.B.A from BIJU PATTNAIK UNIVERSITY OF TECHNOLOGY Bhubaneswar, Odisha. This thesis has not formed before the basis for the award of any degree, diploma or any other similar titles.

Place: Bhubaneswar Date:

SWAGAT LENKA

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PATIA, BHUBANESWAR – 751024, ODISHA Phone: - 07438000111, 9040003344 Email: [email protected], [email protected]

INTERNAL GUIDE BIJU PATTNAIK INSTITUTE OF INFORMATION TECHNOLOGY AND MANAGEMENT PATIA, BHUNABESWAR

CERTIFICATE This is to certify that Mr. SWAGAT LENKA, pursuing MBA 2018-20 from BIITM, Bhubaneswar bearing Regd. No.1806258172 has successfully completed his dissertation report on “OPERATION MANAGEMENT OF LOGISTICS AND SUPPLY CHAIN DEPARTMENT” under my guidance for partial fulfillment of his Masters in Business Administration for the session (20182020).

Place: Bhubaneswar Date:

Mr. Manoj Kumar Rout Assistant Professor (Operation Mgt)

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PATIA, BHUBANESWAR – 751024, ODISHA Phone: - 07438000111, 9040003344 Email: [email protected], [email protected]

PRINCIPAL BIJU PATTNAIK INSTITUTE OF INFORMATION TECHNOLOGY AND MANAGEMENT PATIA, BHUNABESWAR

CERTIFICATE This is to certify that the project report entitled “OPERATION MANAGEMENT OF LOGISTICS AND SUPPLY CHAIN DEPARTMENT” was prepared by Mr. SWAGAT LENKA under the guidance and supervision of Mr. Manoj Kumar Rout, (Assistant Professor, Operation Management),

BIITM,

Bhubaneswar during the session of 2018-2020 for the partial fulfillment of Masters in Business Administration.

Place: Bhubaneswar Date:

Dr. Pratap Kumar Tripathy Principal, BIITM

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ACKNOWLEDGEMENT I take this opportunity to express my sincere gratitude to the following personalities without whose help and guidance the successful completion of my project work would have been remained a dream. I extend my heartfelt thanks to our Corporate Guide Mr. TAPAN MOHAPATRA for the constant and valuable guidance by him throughout my course. I would like to take the pleasure of this opportunity to express my heartfelt gratitude to my guide Mr. MANOJ KUMAR ROUT (Asst. Prof, Operation Management) who took personal interest and gave valuable suggestions throughout my field work and completion of the project. I thank all my faculty members of MBA department for their valuable suggestions throughout my course. The importance of the moral support and good wishes of my parents and friends is external and I am very much indebted to them. Finally I thank all my friends who directly or indirectly helped me a lot during my project.

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EXECUTIVE SUMMARY Supply Chain management is the network of activities where the raw material is purchased then transformed into the usable goods and then finally delivered to the customers through the distribution systems. Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements. There are few issues that are faced by the company like the poor quality of the end products, high competition, supply and demand not able to meet and issues related to the 3PL and since the competition is growing, it is important to take actions on the issues. The goals of the company include understanding the strategies, fighting the competition, reduction of cost and also the logistics to be managed. The report consist the details regarding how the company works, how supply chain & distribution affects their businesses, what basic principles they follow, how product order is placed by keeping view & identifying the customer needs, how they carry out the functions by using SAP software by properly assessing & evaluating the each and every department. The performance can be evaluated by the company with the help of quantitative and qualitative measures. The evaluation will help the supply chain department to overcome the poor performance. The performance measurement criteria consist of the customer satisfaction, supplier performance, integration of material flow and the information. The performance is also evaluated on the basis of finance of the company as well. It is analyzed that the performance evaluation helps in further improving the strategies of the company for the better competitive advantage. The report also analyses the strategies that the supply chain Management Company should adopt in order to perform better and improve continuously in the process and procedures of the supply chain management. The report gives the structure, benefits and the limitation of different strategies that can be used and applied to the company‟s supply chain to improve the quality of the end product and services 7|Page

which will definitely increase the profitability of the company. Next is a logistics strategy where the points are explored on logistic management that the company should apply. The purchasing and the procurement strategies as well as the marketing strategies for the supply chain are also analyzed in the report. It is vital for the company to have sustainability in the global supply chain as it will help in maintaining the competitive advantage. In this report the factors are considered that will help the supply chain in developing and maintaining the sustainability of the company.

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CONTENTS S.N

INDEX Declaration Certificate Acknowledgement Executive Summary

PAGE NO 3 4 7 8 11 17 17 18

1.4

INTRODUCTION SCOPE OBJECTIVE RESEARCH METHODOLOGY AND DESIGN LIMITATIONS

CHAPTER 2 2.1 2.2 2.3 2.4 2.5

COMPANY PROFILE ORGANIZATION STRUCTURE ORGANIZATION LAYOUT MARKETING MIX SWOT ANALYSIS CUSTOMER ANALYSIS

25 31 32 35 36 36

CHAPTER 3 CHAPTER 4 CHAPTER 5

LITERATURE REVIEW ANALYSIS AND FINDINGS SUGGESTIONS CONCLUSIONS BIBLIOGRAPHY ANNEXURE

40 57 72 74 75 76

CHAPTER 1 1.1 1.2 1.3

24

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INTRODUCTION Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment. The market size of Indian retail industry is about US $312 billion. Organized retailing comprises only 4.5 per cent of the total retailing estimated at around US$ 8.7 billion. The organized retail sector is expected to grow to US $ 70 billion by 2010 International retailers. India's vast middle class with its expanding purchasing power and its almost untapped Retail industry is key attractions for global retail giants wanting to enter newer markets. Supply Chains A supply chain is the connected network of individuals, organizations, resources, activities, and technologies involved in the manufacture and sale of a product or service. A supply chain starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer. SCM oversees each touch point of a company's product or service, from initial creation to the final sale. With so many places along the supply chain that can add value through efficiencies or lose value through increased expenses, proper SCM can increase revenues, decrease costs, and impact a company's bottom line. Supply Chain Management Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. SCM represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings.

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Logistics The word logistics is derived from the French word “loger” which means “to quarter and supply troops”. When large number of troops and their equipment move, meticulous planning is required to move volumes of goods and ammunition in that direction. From a marketing point of view, customers are satisfied when they get right product at the right place, at the right time and in the right quantity. Retail logistics system ensures smooth flow of goods to customers through efficient movement of logistics. Retail logistics‟ is the organist process of managing the flow of merchandise from the source of supply to the customer. Large retailers deal in a wide variety of products. This has created a need for a systematic planning of movement of numerous goods until they are delivered to the customer. Retail logistics ensures that everything is in place to offer better delivery and service at lower prices by way of efficient logistics and added value. Logistics Management Logistics management is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination. Logistics management helps companies reduce expenses and enhance customer service. The logistics management process begins with raw material accumulation to the final stage of delivering goods to the destination. By adhering to customer needs and industry standards, logistics management facilitates process strategy, planning and implementation. 11 | P a g e

Retailers today face many challenges because of greater product variety, shorter product life cycles cause‟s greater fluctuations in demand and calls for high responsiveness in supply chain and due to which need of shorter lead time continues. In retail transactions must be smooth, timely and accurate. When one is dealing with a complex function such as retail it is very essential that we have a strong supply chain for better responsiveness and cost effectiveness. An effective supply chain management system can provide a 360 degree feedback to the retailer as well as to the manufacturer about the popularity and complaints of any particular product. Provide valuable insights on inventory and guidelines on merchandise allocation. It also increases visibility of stock sales and consumer demand throughout the supply chain. Facilitates collaboration and communication for improving relationship with supplier. As Pantaloons Retail believes in value retailing so it is very essential that our supply chain is very strong because we only make money when we reduced our cost and supply chain is the only area for maximum cost reduction either it is purchase in bulk or it is better logistics we only win if we are able to decrease our cost and response time.

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There are 5 essential areas for the success of any retailer in the supply chain and out of these 3 are logistical functions. These five areas are:     

Warehouse (Facility) Inventory Management Transportation Information Flow Technology

Pantaloons Retail India Ltd.

Category

Logistics

Operations

 WAREHOUSE Warehouse is the location to or from which the inventory is transported. Warehouses are the key driver of supply chain performance in terms of responsiveness and efficiency. Before deciding the location of Warehouses we must consider the following points:  Location of our stores  Rent of the location  Format of our retailing Now a days warehouse is treated as switching facilities rather than storage place and companies try to move stock from the warehouse as soon as possible to reduce the inventory handling cost, for higher inventory turnover and for shorter cycle time It is a major cost center, many customer problem are the direct result of improper warehousing management.

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 INVENTORY MANAGEMENT Inventory exists in the Supply Chain Because of a Mismatch between Supply and Demand. Inventory is the major source of cost in the Supply Chain. The figure given below shows how the effective inventory management is work. This figure shows that there must be some inventory level we must manage for efficiently fulfill the demand of customers and we must out the inventory in time so that we are able to send the stock in stores in time and the damage stock is also out from the WH so that we maintain a good inventory level.  TRANSPORTATION Transportation is defined as the physical flow of material and finished goods from point of origin to point of use to meet customer‟s need at a profit. It is essentially a planning process and an information activity so an integrative process that optimizes the flow of material and supplies through the organization and its operations to the customer. It is of critical importance to the organization how it delivers products & services to the customer, whether the product is tangible or intangible. Effective & efficient Physical movement of the tangible product will speak of intangible services associated with the product and the organization which is delivering it. In Case of intangible product, the delivery of tangibles at the right place & right time will speak about its quality. India spends nearly 12% of its GDP on logistics. India spent nearly $ 50 billion to move material from one use to another. Any good transport service is that which provide:  Reliable and consistent delivery performance  Freight economy  Minimum product damage Pantaloons outsourced its transportation services to the third party which is Indo Arya, so in this case all damages all responsibility is of transportation service. Company must provide the required vehicle on time when WH requires it. 14 | P a g e

 INFORMATION FLOW Information serves as the connection between various stages of a supply chain, allowing them to coordinate and maximize total supply chain profitability. It is basically information based activity of inventory movement across the supply chain. Hence role of information system plays a vital role in delivering superior customer service this function is required to facilitate the following information needs:    

Order Registration Order checking & editing Order processing Coordination - To integrate the total supply chain of the company with informational needs as to time, quantity.

Flow of information is very essential to know the exact requirement of stores, to know consumers preferences, to know the inventory level in store and in warehouses.  TECHNOLOGY Better flow of information is only possible with the use of latest technology and that is the reason because of which companies invest so much on new technology like RFID, ERP software etc. Pantaloons is also understand the importance of information and technology and so company implement ERP software for making supply chain better. Pantaloons using SAP which is one of the most successful ERP. With this software sharing of information is much easier because we can see how much inventory is available in the WH and placing STO according to that. Making STO, Pick list and GRN is also very easy and fast with the help of SAP.

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OBJECTIVE  To study the effective management of SCM from the movement of stock and merchandise from warehouse, vendors, and other location to shop floor, updating the inventory and subsequently be available for sale.  To analyze the minimization of product damage and inventory reduction applying Supply chain Model.

SCOPE In order to understand the concepts of logistics and supply chain management in terms of practical usage and to glimpse in to the how real company or organization uses logistics as a formidable tool to gain customer satisfaction, reduce overall cost and increase efficiency supply chain management through operational excellence.

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RESEARCH METHODOLOGY & DESIGN Research is a logical and systematic search for new and useful information on a particular topic. It is an investigation of finding solutions to scientific and social problems through objective and systematic analysis. It‟s a search for knowledge, that is, a discovery of hidden truths. Here knowledge means information about matters. The information might be collected from different sources like experience, human beings, books, journals, nature, etc. A research can lead to new contributions to the existing knowledge. Only through research is it possible to make progress in a field. Research is done with the help of study, experiment, observation, analysis, comparison and reasoning. Research is in fact ubiquitous. Research methodology is a systematic way to solve a problem. It is a science of studying how research is to be carried out. Essentially, the procedures by which researchers go about their work of describing, explaining and predicting phenomena are called research methodology. It is also defined as the study of methods by which knowledge is gained. Its aim is to give the work plan of research. Purpose of studying Research Methodology The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulative research studies); 17 | P a g e

2. To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies); 3. To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies); 4. To test a hypothesis of a causal relationship between variables (such studies are known as hypothesis-testing research studies).

METHODOLOGY OF STUDY Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods. Research design Research design is considered as a "blueprint" for research, dealing with at least four problems: which questions to study, which data are relevant, what data to collect, and how to analyze the results. The best design depends on the research question as well as the orientation of the researcher. Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyer‟s behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Ker linger, “Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

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Types and Methods of Research Research is a process of collecting, analyzing and interpreting information to answer questions. But to qualify as research, the process must have certain characteristics: it must, as far as possible, be controlled, rigorous, systematic, valid and verifiable, empirical and critical. Every Research needs lots of dedication from the researcher‟s part-the amount of dedication mainly depends on the subject matter of the research. Before undertaking any research in any subject areas one must be sure about the intended purpose of the research-this purpose determines what type of research one is going to undertake. Any scientific research may fall into the following three broadly categories: Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristics of this method are that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material. Applied vs. Fundamental: Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concerned with generalizations and with the formulation of a theory. Gathering knowledge for knowledge‟s sake is termed „pure‟ or „basic‟ research. Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research.

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Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behavior (i.e., why people think or do certain things), we quite often talk of „Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. Conceptual vs. Empirical: Conceptual research is that related to some abstract ideas or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without due regard for system and theory. It is data-based research, coming up with conclusions which are capable of being verified by observation or experiment. We can also call it as experimental type of research. In such a research it is necessary to get at facts firsthand, at their source, and actively to go about doing certain things to stimulate the production of desired information. In such a research, the researcher must first provide himself with a working hypothesis or guess as to the probable results Data

collection

and

Techniques

Data Collection Data collection is a term used to describe a process of preparing and collecting data, for example, as part of a process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, or to pass information on to others. Data are primarily collected to provide information regarding a specific topic. Data collection usually takes place early on in an improvement project, and is often formalized through a data collection plan which often contains the following activity.

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Techniques of Data CollectionPrimary data is the data that you collect yourself using direct observation, surveys, interviews etc. It is the data that has been collected from first-handexperience. Primary data has not been published yet and is more reliable, authentic and objective. Primary data has not been changed or altered by human beings; therefore, its validity is greater than secondary data. Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. It is collected from external sources such as TV, radio, internet, magazines, newspapers, articles, reviews etc. Sample design The data used here by me is collected by primary and secondary sources. Primary data: it will be collected with the help of a self-administered questionnaire. This questionnaire aims to gather information related to various Branded products. Secondary data: it will be collected with the help of books, research papers, magazines, newspapers, journals, Internet, etc. Questionnaire design: As the questionnaire is self-administrated one, the survey is kept simple and user friendly. Words Used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents. In addition to that, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments.

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IN THIS PROJECT:RESEARCH DESIGN:

SAMPLE DESIGN:

Exploratory research design

Sample size is 50 nos. of respondents

SAMPLING TECHNIQUE:

Interview and Questionnaire

SOURCE OF DATA:

Primary Data

Secondary Data:

Personal interview

Internet.

Employees

Induction guide.

Transporters

Books

Questionnaire

Journals & research texts

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LIMITATIONS  Time limit is a major constraint  Some of the respondents refused to fill questionnaire during the research work.  Some of the lower level store department employees were not well educated.  As per the company rules many information was not disclosed to the trainees  Due to human behavior information may be biased.

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COMPANY PROFILE Aditya Birla Fashion and Retail Limited (ABFRL) emerged after the consolidation of the branded apparel businesses of Aditya Birla Group comprising ABNL‟s Madura Fashion division and ABNL‟s subsidiaries Pantaloons Fashion and Retail (PFRL) and Madura Fashion and Lifestyle (MF&L) in May 2015. Post the consolidation, PFRL was renamed Aditya Birla Fashion and Retail Limited. ABFRL brings together the learning‟s and businesses of two renowned Indian fashion icons, Madura Fashion & Lifestyle and Pantaloons Fashion and Retail. ABFRL is India's No. 1 Fashion Lifestyle entity with a combined revenue of Rs.6,633crore for FY‟17, growing at a rate of 10 per cent and EBITDA of INR 476 crore for FY‟17 that has grown at 18 per cent over the last year. The Aditya Birla Group is an Indian multinational conglomerate named after Aditya Vikram Birla, headquartered in the Aditya Birla Centre in Worli, Mumbai, India. The Aditya Birla Group is the world‟s largest product of Viscose Staple Fiber industry. It operates from India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament yarn businesses and spinning mills in India and South East Asia. The group has pulp and plantation interests in Canada and Laos. Its two companies Aditya Birla Nuvo Ltd. And Grasim Bhiwani Textiles Ltd. which is a subsidiary of Grasim Industries is in textile business.

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COMPANY LOGO The name “Aditya Birla” evokes all that is positive in Business and in life. It exemplifies integrity, quality, Performance, perfection and above all character. The logo is the symbolic reflection of these traits. It is the cornerstone of their corporate identity. It helps them leverage the unique Aditya Birla brand and endows us with a distinctive visual image. Depicted in vibrant, earthy colors, it is very arresting and shows the sun rising over two circles – an inner circle symbolizing the internal universe of the Aditya Birla Group with an outer circle symbolizing its external universe; and a dynamic meeting of rays converging and diverging between the two. Through its wide usage, they create a consistent, impact-oriented Group image. This undoubtedly enhances their profile among their internal and external stakeholders. The corporate logo thus serves as an umbrella for their Group. It signals the common values and beliefs that guide their behavior in all their entrepreneurial activities. It embeds a sense of pride, unity and belonging in all of our 120,000 colleagues spanning 36 countries and 42 nationalities across the globe. The logo is their best calling card that opens the gateway to the world.

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PANTALOONS Parent Company

Aditya Birla Group

Category Sector

Retail Retail & lifestyle

Tagline

In love with life, In love with fashion Pantaloons offers value for money with quality apparel in India.

USP

Pantaloons Fashion & Retail Limited is an Indian premium clothing retail chain. The Pantaloons store was launched in Gariahat, Kolkata in 1997. As per recent survey, there are 209 Pantaloons stores across 78 cities & towns. Pantaloons was previously controlled by the Future Group and were taken over by Aditya Birla Nuvo Limited (ABNL). According to the Brand Trust Report 2014, a study conducted by Trust Research Advisory, Pantaloons featured among 100 most trusted brands in India. Voted as, India‟s most trusted apparel retail brand‟ (Brand Equity survey 2014-15), Pantaloons, a division of ABFRL, is one of the most loved large format fashion retailers in India. Post-acquisition by Aditya Birla Nuvo Limited in 2013, Pantaloons today is the fastest growing large format retailer in the country. The rate of new store openings has increased from one every two months to one every two weeks. The brand is now present in 78 Indian cities/towns. Pantaloons posted revenues of Rs.2, 164 crore in FY 15-16, up 17 per cent from the previous year. Pantaloons offer a wide range of brand offerings across apparel and non-apparel categories and across varied price points. 26 | P a g e

It operates across categories of casual wear, ethnic wear, formal wear, party wear and active wear for men, women and kids. Women wear is the lead category contributing to half of total apparel sales. Nonapparel products include footwear, handbags, cosmetics, perfumes, fashion jewellery and watches. Pantaloons began in 1997 as a future group company in the quest to equip the emerging Indian middle-class with an indigenous fashion retail format. Consistent with the times, the model was of a discount fashion retailer. A typical Pantaloons store is spread across a sprawling retail space of about 28,000 sq. ft., comprising a brand portfolio that runs across a wide gamut of styles that spell class. The collection includes ready-to-wear western and ethnic apparel for men, women and kids complemented by an exhaustive range of accessories. Pantaloons today retail over 200 licensed and international brands, including 24 exclusive brands. The Pantaloons exclusive brand bouquet includes Ajile, Akkriti, Alto Moda, Annabelle, Bare Denim, Byford, Candies‟ New York, Chalk, Chirpier Pie, Honey, Isabel London, Poppers, Rangmanch, Richard Parker, SF Jeans, Trisha, Urban Eagle; besides, it also features brands licensed on a long-term basis: Bare, Rig, SF Jeans, Byford, JM Sports, Lombard and Candies‟ New York. It also hosts Madura F&L‟s brands such as Louis Philippe,VanHeusen,Allen Solly, Peter England and People in menswear; Van Heusen and Allen Solly in women's wear and Allen Solly Junior. It retails partner brands such as John Miller, Celio, Spykar, Levis and Lee Cooper in menswear; Jealous 21, 109*F, AND, Chemistry and KRAUS in women" western wear; BIBA, Global Desi and W in women‟s' ethnic wear; Barbie and Ginny & Jony in kids wear. Customers can shop from an assortment of watches from renowned international brands like Titan, Fastrack and Disney among other brands. Trendy sunglasses from Scott, Opium and Idee are also available. The accessories and beauty segments display an attractive collection of lady‟s handbags from Lavie, Caprese and Baggit. Also available products are from color cosmetic brands such as Chambor, Revlon, Maybelliene and Lakme, as well as a wide collection of exotic fragrances. 27 | P a g e

With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on growth while continuing to create fresh fashion. Pantaloons is available on all leading e-commerce portals. Pantaloonsenjoysaloyalcustomerbaseof8.0million (asof30June‟17), which is one of the largest among apparel retailers in the country. It runs its own four- tier loyalty programme called “Green card”. PFRL‟s comprehensive marketing strategy is a mix of traditional and new-age communication. It also exploits digital media to reach out to the Internet community. Additionally, it runs varied store and brand launch events and promotions, besides corporate tie-ups to enhance brand visibility and recall. Pantaloons is recognized by its warm personalised service that completes the core proposition of this trendy chain. The Aditya Birla Group ranks high in the League of Fortune 500 Corporations of the world with a strong mix of talented and capable personnel comprising of 42 different nationalities, who are credited with anchoring the organization and scripting one brilliant success story after another. Backed by the giant conglomerates, ABNL and Future Group, both the entities both will work in tandem to derive organizational synergies for back- end, supply chain and other crucial value drivers of the business.

Pantaloons STP Segment

People looking for good quality affordable apparel

Target Group

Middle and upper middle class urban families in India

Positioning

Pantaloons is highly fashionable brand with affordable prices

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Vision: To be a premium global conglomerate, with a clear focus on each of the businesses.

Mission: To deliver superior value to the customers, shareholders, employees and society at large.

Values: Integrity:

Commitment: Passion:

Seamlessness: Speed:

We believe in growth of the organization with the growth of our people. People are our investors, partners (vendors), Employees, customers and stakeholders of the companies. Aditya Birla is a name known for higher value and good quality. We do what we commit to our people. Our excellence in every field of business and promise to provide the best shows the passion of the organization We work beyond limits; we go one step ahead of others to serve and to benefit Growth is important but timely growth is the key to success. We believe to act early.

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ORGANIZATIONAL STRUCTURE

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ORGANIZATION LAYOUT

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HR POLICY Human resource management is controlled and managed by the head of operations at the Head Office. The operation head will plan the requirement of various levels of working team and managing the welfare and growth of the employees. It consists of recruitment process and the sourcing of candidate is done by databases developed, reference or walk in, minimum qualification of 12th standard for sales level candidate. Every employee joining goes through training and familiarization stages before actually reporting at the relevant work. It may be on the job or in store. There are 3-4 trainings monthly for the employee‟s growth and development. Employees Compensation is evaluated by rating scale and Balance score card, areas evaluated includes quantity & quality of work, Attitude Corporation and initiative etc. It consists of employee discount cards, employee provident fund, ESIC. Employment levels: Band 5- strategic decision makers (CEO, MO) Band 4- Managers Band 3- Deputy Managers & Store Managers. Band 2- Specialist (executives) Band 1- Coordinators (floor staffs, sales force)

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MARKETING MIX PRODUCT

PANTALOONS BRAND (PT) ETHNIC

WESTERN

KIDS

MEN'S

RANG MANCH AAKRITI

BARE DENIM HONEY FOREVER GLAM

CHALK CHIRKIE PIE

SF JEANS BARE DENIM RICHARD PARKER BYFORD INDUS ROUTE SPIRITUS RIG

AJILE DREAMZ ANNABELLE

NON-PANTALOONS BRAND (NPT ETHNIC

WESTERN

KIDS

MEN'S

GLOBAL DESI W FUSION BEATS BIBA AURELIA IRA SOLEIL

AVIRATE 109 F ZINK LONDON LEVIS JEALOUS 21 AND LATIN QUARTER KRAUS

GINI &JONNY 612 LEAGUE DOODLE MINI KLUB U.S.POLO

VAN HEUSEN JOHN PLAYER ARROW CELIO,LEE SPYKAR,KILLER SUCCESS PETER ENGLAND PEPE,TURTLE

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PLACE        

Chain of stores mainly functioning in malls. Store located nearly to the competitors. Product availability mainly depends on the city of operations. Pantaloons have distribution centers in four major metros of the country. It has about 100 stores all over India They have also introduced online shopping. Exclusive stores for women and kids. In stores they keep 70% of their own brand and remaining 30% of other brands.

PROMOTION  They promote in house brands with some space with other brands.  The Pantaloons Payback green card, which is a unique loyalty program has been designed exclusively for Pantaloons' customers to enhance customer experience  Presently offered to over 5 million members, the programs entitle members to discounts ion terms of points and special privileges at all Pantaloons stores.  All types sales and discounts  Online and offline promotions. PRICE  Pricing decisions consistent with firm's marketing strategy and target market.  The purpose to provide branded products at 1% less than the MRP and 20% off on the local brands.  The types of pricing :1. Seasonal pricing 2. Product bundling pricing. 3. Promotional discounts.

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SWOT ANALYSIS OF PANTALOONS STRENGTH WEAKNESS  Well established brands  Wide span of control  Economic packing and quality  More complexity apparels  Employee Retention.  Presence in major cities. OPPORTUNITY  Merge with global brands  Growth in middle class group  Increase in disposable income

THREATS  Being pioneer, extensive competition  New entrants  International expose of competitors

CUSTOMER PROFILE There are both current and potential customers. People prefer coming to pantaloons for the offer and service they get as well as the quality of the products and their convenience. Pantaloons have B2C distribution channel as well as online channel. The pantaloons green card, loyalty program has been designed exclusively for pantaloons customer to enhance customer satisfaction. It offered to 4 million members, the program entitles members to discounts, point redemption and special privileges at all the stores. The benefit covered under green card includes discounts, complementary parking, relaxed exchange policy, exclusive sales preview and exclusive billing counters. Different rating points like 1 star, 3 star, 5 star, 7 star.

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There is a membership called insignia loyalty premium membership to give maximum benefits and making the customer journey delightful, all year round. It gives 10% instant discount all year round and even during sales. It has 90 day return policy. They believe in building long lasting relationship with customers and encourage repeat customer visit through the unique offers and sales. They retain customers by providing customer service training to employee, offer the best possible deals in town for the customers, and tell the staffs to behave properly with the customers. Pantaloons seek to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that pantaloons do. It has developed core competency in offering high quality, branded product whose image is recognizable among consumers and also providing quality brands at very low cost. Developing a reputation among retailers as a reliable retail outlet delivering the requested number of products on schedule.

DRIVING FORCES OF APPAREL RETAIL SECTOR

 Rising disposable income of Indian middle class The Indian middle class family has been categorized into seekers and strivers, which is a consuming class and the prime target segment for retail. In 2008, these two categories together constituted around 6.4%of the total households in India and accounted for 20% of the disposable income. By 2018, the middle class is expected to constitute around 25% of the total household & accounted for 49% of the disposable income and the respective figures will grow up to 55& or 60%.

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 Changing consumer preference and shopping habits The prime reason for a paradigm shift in the shopping attitude of the Indian consumer is the change in their preferences and tastes. Due to the increasing use of IT and telecom, Indian consumers have become aware of brands and shops for lifestyle and value brands according to the need and occasion. Consumers will continue to drive the growth in the organized retail by expanding the market and compelling retailers to widen their offerings in terms of brands and in terms of variety. The spending on essential commodities has been steadily falling over the years and the rising reach of media coverage is increasing consumer awareness about products, their prices and services, which is likely to further encourage growth in the organized retail segment.  Changing Demographics India is one of the youngest and the largest consumer markets in the world with a median age of around 25 years, which is the lowest as compared with other countries. According to estimates, India‟s median age would be 28 by 2020. It is expected that over 53% of the population will be under the age of 30 by 2020. The plus about this population is that they will be more dynamic than the previous generations because their consumption is driven by wants rather than needs. Thus, the organized apparel retailing, which thrives on lifestyle products, is expected to receive a boost because of the young population by 2020.  Increase in working population India is the second-largest country in the world in terms of population, and is the largest consumer markets in the world owing to its favorable demographics. In 2008 India‟s working population (in the 15-49 years age group) constituted around 53% of the population as compared with 48.6% in the UK, 49% in the US, and 53% in Russia. Further, the increase in the number of working women has fuelled the growth in sales of discretionary items. There has been a 20% increase in the number of working women in the last decade.

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CHALLENGES FOR APPAREL INDUSTRY  Changing customers As shoppers turn to the internet for information and shopping, to smartphone applications for price comparisons, and to social media for opinions, the industry's response becomes more service- and price-sensitive. A broader variety of online and offline shopping alternatives gives brand loyalty less importance and presents stocking and pricing concerns. To be competitive, retailers must balance inventories to avoid out-of-stock scenarios that mean lost sales. They must reduce the time needed to bring goods from design to delivery, or "speed to market." Their success and ability to offer competitive pricing depends largely on their sourcing selections.  Product sourcing  Sustainability  Inventory Level.

CONSUMER SEGMENT 1. By Age & Gender. Men‟s wear Kid‟s wear Women‟s wear 2. By Clothing Style. Formal wear Casual wear Ethnic wear Sports wear Party wear 38 | P a g e

LITERATURE REVIEW Sarode A.D. and Khodke P.M. (2009), the literature on SCM that deals with strategies and technologies for effectively managing a supply chain is quite vast. In recent years, organizational performance measurement (PM) and metrics have received much attention from researchers and practitioners. Performance measurement and metrics have an important role to play in setting objectives, evaluating performance, and determining future courses of actions. Apart from the common criteria such as cost and quality, ten other performance measurements are defined, visibility, trust, innovativeness, delivery reliability, flexibility and responsiveness, resource utilization, cost, assets, technological capability, service and time to market, so total twelve criteria and fifty eight sub criteria are used to evaluate the performance in supply chain. So, for evaluating and selecting supplier a multi-attribute decision-making technique, an analytic hierarchy process (AHP), is used to make decision based on the priority of performance measures. This paper describes a decision framework for evaluating and selecting supplier performance in a supply chain. A case study from the automotive industry is used to demonstrate the AHP technique. GoknurArzuAkyuz and TuranErmanErkan (2010), this paper is intended to provide a critical literature review on supply chain performance measurement. The study aims at revealing the basic research methodologies/approaches followed, problem areas and requirements for the performance management of the new supply chain era. The review study covers articles coming from major journals related with the topic, including a taxonomy study and detailed investigation as to the methodologies, approaches and findings of these works. The methodology followed during the conduct of this research includes starting with a broad base of articles lying at the intersection of supply chain, information technology (IT), performance measurement and business process management topics and then screening the list to have a focus on supply chain performance measurement. Findings reveal that performance measurement in the new supply era is still an open area of research. Further need of research is identified regarding frame work development, empirical cross-industry research and adoption of performance measurement systems for the requirements of the new era, to include the development of partnership, collaboration, agility, flexibility, in formation 39 | P a g e

productivity and business excellence metrics. The contribution of this study lies in the taxonomy study, detailed description and treatment of methodologies followed and in shedding light on future research. NenadStefanović and DušanStefanović (2011), Successful supply chain management becomes essential for the ultimate success of corporations. Companies today seek an effective performance measurement (PM) system to maximize the bottom line. Unfortunately, performance measurement in the supplychain field has not kept pace with today‟s world of interdependent business relationships. What companies need is a new PM system that unifies different business elements, concepts, technologies and tools. In this paper, the architecture of such a pervasive PM system is introduced. The main system elements such as process model, metrics and data warehouse are described. Finally, a specialized PM web portal which enables proactive performance monitoring and fosters the improvement and optimization is presented. NedaaAgamiet. al. (2012), the objective of this paper is not just to review the advancements in theory on supply chain performance measurement per se, but rather to provide a taxonomy with which research in the field can be mapped and evaluated. The need for a structured topological approach to the development of supply chain performance measurement frameworks and methods is addressed. Findings are based on the analysis of a huge number of publications including the most recent reviews conducted in the contemporary literature (books, theses, journal articles and conference papers). The researchers believe that currently existing supply chain performance measurement frameworks can be classified into nine different types grouped according to the key criteria of measurement. This research reveals that most of the already existing approaches are static, inflexible and lack continual improvement which constitutes a gap between the theory and their potential application. Thus, future contributions to the topic are essential and possible. Lang Ling Yap and Cheng Ling Tan (2012), the aim of this paper is to propose a conceptual framework for examining the relationship between service supply chain management practices and public healthcare‟s organizational performance that recognizes the mediating effect of alliance integrated network in Malaysia. Supply chain theory such as resource-based view is found to support the conceptual framework. A total of 5 dimensions of service supply chain management practices 40 | P a g e

(information and technology management, demand management, customer relationship management, supplier relationship management, capacity and resource management) were determined to have significant and positive direct relationship with organizational performance. Additionally, alliance network was found to have the mediation effect on the direct relationship. The proposed research framework is applied to Malaysian public healthcare industry which has limited studies. Sharfuddin Ahmed Khan(2013),this paper focuses on why there is a need for a research in measuring supply chain performance, the relevance of the chosen criteria with respect to the major performance issues in a supply chain management and, finally it will provide some future direction on how to develop a model to measure overall supply chain management performance. This paper highlighted the importance of such a model that can measure overall supply chain management performance. It is also recommended that the developed model can be based on any multi-criteria decision making technique because of the conflicting criteria in developing the performance model. Rajiv Aserkaret. al., (2014),this paper looks at trying to understand whether supply chain and brand performance can be linked and whether the information gained could be used to enhance perceived value. This was carried out through the analysis of the brand rankings and supplies chain rankings as a measure of the brand performance and supply chain performance respectively of fourteen global brands. Secondary research was used to co-relate deviations or parallels between the rankings which were taken from AMR/Gartner Research Top 25 Supply Chains reports and the Milward Brown Optimor reports from 2007 to 2013. Other sources from publications, EBSCO, corporate websites, industry publications etc. were extensively studied to understand reasons for changes in performance. It was found that eight of the fourteen organizations had both the rankings moving in tandem. NenadStefanović (2014),this paper introduces a predictive supply chain performance management model which combines process modeling, performance measurement, data mining models, and web portal technologies into a unique model. It presents the supply chain modeling approach based on the specialized meta-model which allows modeling of any supply chain configuration and at different level of details. The paper also presents the supply chain semantic business intelligence (BI)model which encapsulates data sources and business rules and includes the data warehouse model with specific supply chain dimensions, measures, and KPIs (key performance indicators). Next, the paper describes two 41 | P a g e

generic approaches for designing the KPI predictive data mining models based on the BI semantic model. KPI predictive models were trained and tested with a realworld data set. Finally, a specialized analytical web portal which offers collaborative performance monitoring and decision making is presented. The results show that these models give very accurate KPI projections and provide valuable insights into newly emerging trends, opportunities, and problems. This should lead to more intelligent, predictive, and responsive supply chains capable of adapting to future business environment. Sunil Kumar Jauharet. al., (2018), the study focuses on embedding the Supply chain management concepts on to the education sector i.e. educational supply chain management. It is an important area of research as it helps in the management of one of the most important sector of a country, viz. the education sector. The objective is to measure efficiency of 19 departments of Indian Institute of Technology Roorkee (IIT Roorkee), a reputed higher education institute of India. Overall supply chain performance assessment for Chemical Engineering, Electronics and Computer Engineering, Hydrology, Management Studies, Mathematics, Physics and Alternate hydro energy centre are efficient in every area of teaching supply chain, research supply chain and total supply chain by using both the criteria (without considering GHG Emission and considering GHG Emission). All other 12 departments need improvements in both of the activities and should pay attention for teaching supply chain and research supply chain works. Anil Kumar and G.S. Kushwaha (2018), in the current business environment, competition is no longer between the organizations but it is among the supply chains of the organizations. India‟s public distribution system is one of the biggest systems for food supply and distribution carried out through fair price shop (FPS).The paper aims to determine the relationship between different supply chain management practices and operational performance of the fair price shops in India. The study provides that three dimensions of SCM practices have a significant and positive relationship with the operational performance. It suggests that supply chain management practices positively &significantly associated with the performance of fair price shops. The importance of supply chain management practices on the day to day operations of the fair price shops and provides an insight that these practices if employed properly they will give an added advantage.

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OPERATION MANAGEMENT PROCESS AT PANTALOONS SUPPLIER/ VENDOR

CENTRAL DISTRIBUTION CENTRE

MOTHER DISTRIBUTION CENTRE

REGIONAL DISTRIBUTION CENTRE

WAREHOUSE

RETAIL OUTLETS

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 INWARD/INBOUND PROCESS IN WAREHOUSE

In warehouse when stock comes from the vendor site or from central warehouse then the following procedure is used for inward of stock in warehouse: Documents check: This is first and one of the most important steps of the in warding procedure because if any warehouse inwards the stock in warehouse without check the proper documents then it creates a big trouble for the organization. It may be possible that the stock which come in the warehouse is not belong to that warehouse or proper taxation is not done by the vendor for that stock so proper checking of documents is must. Security guard and the person responsible for stock unloading checks documents before allow the stock to enter in the WH. If stock comes from central WH, any other WH or from any store then following documents are checked by the security staff: o Stock Transfer Note (STN) staff checks whether this STN belong to this WH or to any other. o Transporter waybill which is different in different in different states and somewhere it is also not require this bill proves that this stock is legal and sales taxes are paid for this stock. o Gate pass which confirms that stock comes out from the store or WH with the permission of responsible person

STOCK TRANSFER ORDER (STO) Stock Transfer Order (STO)/Stock Transfer Note (STN) are the document which is used for transfer of stock WH and stores. At the store level STO is raise by DM‟s of their respective department. STO is also required for the movement of stock from one warehouse to another or from one store to another. We can say that all the movement of stock within the organization is takes place with the help of STO.

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If stock comes from vendor‟s site then security checks the following documents: o Purchase Order (PO) whether this PO is for this WH or not and security also check the expiry date of PO. o Invoice (Bill) which specifies what qty. vendor sends and what price vendor charge from company. o Delivery challan which is the proof of payment of sales tax.

PUCHASE ORDER (P.O.) Purchase Order(PO) which is only raise for the vendors/suppliers and this PO is only raise by the Front End Category Team from the Zonal office or from Head office and it is also raise by stores and in stores it is raised by Department Managers. PO from the store level is only raise for the local vendors and vendors deliver stock directly to the stores. When DM‟s of the stores raise PO then most of the time it first goes to category team and then category team pass it to the vendors. In case when category team raise the PO then it considered the requirement of the stores which is sent by the DM‟s to the category team and then category team make PO for vendors and decide whether stock goes to WH or directly to the stores.

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1. Entry in security inward register: After proper unloading security staff enters the details of in warding in security inward register. The format of inward register is given below: 2. Stock Count and Check: After the entry of stock in the register this is the time to count the stock manually or by the help of SAP and employee also check for any damage in the stock that the WH get and if they find any difference between the quantity mentioned in invoice and the actual quantity they get or if there is any damage product, any part missing or any bar code problem then they write that information on the invoice of the vendor and pass it to the concerned person of the WH. 3. Entry into SAP: After counting the stock if counting is done manually then the stock is entered in the SAP by scanning each and every product for the better visibility of stock across the supply chain. If there is any problem in bar code like it is not read by reader because of any scratch on bar code or bar code is not on the merchandise then the person try to find out its article code by matching that product with other product of same characteristics like a shirt of same color, same size and same brand has common article code and when they find any such merchandise then they enter its article code in the SAP manually and if they don‟t get any merchandise then they put it away and inform the vendor about this type of product. 46 | P a g e

Warehouse Storage Process Storage is also the most important part of the warehouse because we cannot store all the stock in store due very high property rents and every Sq. ft. of space is very costly in the regions where stores are located and proper storage is also essential in WH to avoid damages and for fast processing. In storage process when stock is enter in the SAP then it is moved to their respective section which is arranged according to their category or MC code. Every item put in WH according to its type and the way it moves out from the WH like clothes are put in bins and racks for fast movement of stock as they are easy for pick when they are put in racks. For Big items like consumer durable and furniture there is no requirement of racks because they are put on the floors and if they are put in racks them it is also hard to put them in racks. At what location any item is placed is also decided because it is not good to move glass items for a large distance so they put near to out gate.

 OUTWARD PROCESS IN WAREHOUSE

1. STN is drawn from SAP: The movement of stock from the WH to the different stores or to other WH is known as stock transfer for this purpose store/WH raise a Stock Transfer Note(STN) for WH according to the requirement of store/WH and WH person takes this STN from SAP. 2. Check availability of stock through SAP: Before take the printout of STN that person check that is there any other store which send the requirement of the same product if so then WH employee divide the stock between the stores according to their requirement so that no one get stock out for that material.

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3. Pick list is made according to the STN: After checking the availability of material WH person generate pick lists according to the category or according to MC code of the category like there is separate code for men‟s jeans and separate MC code for ladies jeans and merchandise is put in the WH according to their MC code so that it is for the employee to pick the merchandise. 4. Employees pick items according to the pick list: Now the pick list is given to the employee which are responsible for pick the merchandise and they take that pick list and as they know where this particular product is placed so they go to that section and pick the items according to the article code which is write on the bar code of the product and put it on the conveyor or in a blank carton and take it to the section from which outward is done. 5. Items are scan through the SAP: When pick stock reach to the outward system the person at the outward system enter STN No./Delivery No. and Handling unit which is L2000 for outward in the SAP and then scan each item one by one and if any item which is not belongs to that STN then a red light is blink in the bottom of SAP window and the person put that item away and tells the persons those pick the item that this is not the right product and the employee again search for right product and when all items get scanned then they pack the cartons for dispatching and put the right tag for the store and STN no. on the cartons. 6. Pre Delivery Investigation (PDI) of stock: Before dispatching the stock to stores for some product an investigation is required to confirm that the dispatch item it in good quality and it is not damaged this process is generally for big product like furniture items, electronics items etc. In this process employee check for any defect in the product and if there is any such problem they found in the product then WH does not dispatch it to the store.

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7. Stock is packed: When stock is put in the cartons then it is the time to pack these and packaging staff pack the cartons with the sheet of polythene so that cartons are not opened easily and sometimes there are some damaged cartons also prevented from opening during transportation by this process. 8. Documentation: When stock is packed then the WH person does the proper documentation for hassle free movement of goods. Employee put the STN with gate pass which is very essential for outward movement of stock without which security does not allow to pass the stock outside the WH and a document is also attached for sales tax purpose which is different for different states like if stock is moved inside the UP them an OC stamp is very essential with the document or if stock is comes in UP from outside then form 31 is required without these documents movement of stock is illegal. 9. Outward Entry Register: After seeing the required documents security person make entry into his register for the outward stock. 10. Dispatch of stock: For dispatching the material to the store the employee of the WH tells the transporter about the requirement of the vehicle in advance so that the transporter arranged the vehicle on time for dispatching the material.

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 OUTWARDING OF DAMAGED/DEFECTIVE PRODUCT: In warehouse most of the times vendors does not take their damage stock back so in this case it is placed in the warehouse but there is no use to handle this damaged stock so WH send it back to the vendor and for sending it back to the vendor a reverse or outward is Purchase order (RPO) is made and stock is outward from the warehouse on the basis of this RPO.

OUTWARD/REVERSE PURCHASE ORDER (RPO) Reverse Purchase Order/Outward Purchase Order (RPO) is the required for the movement of stock from WH to vendor or from store to vendor. RPO is required only in case of defective/damaged stock when it is required to move back to vendor. RPO is made by warehouse in charge in WH and by SCM executive in the store.

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 INWARD PROCESS FOR WH TO FLOOR MOVEMENT

1. Documents check: This process is same as that of WH security staff checks STN, Delivery Challan, and Gate Pass when stock comes from WH and PO, Delivery Challan and Invoice when stocks comes from supplier. 2. Unloading and counting of cartons: In this process the security personnel has to physically count the number of cartons and has to match the HU and LR number with all respective cartons, in some instances cartons needed to be weighed in the presence of transporter. And, if their exist a weight difference of 150gms; stock has to be checked by counting each stock in front of transporter. 3. Stock count and check: This step is somewhat different from WH because in case of store the process of counting and checking of stock from any damage is very fast in comparison to WH. In store the shortage and damages that are found in write on the documents which are send to vendor at the same time after counting and damage material is try to dispatch from store as soon as possible because of space problem. 4. Entry in security inward register: After counting security enter the inward stock detail in security inward register for future requirement. The format of security inward register is given below: 5. Stock move to store warehouse: After counting and entry in the inward register stock is moved to the warehouse of the store. 6. Entry into SAP: When stock moved to the warehouse then it is the time to enter the stock in the SAP so that it is moved to shelves because without entering the stock in SAP it is not recognized by billing counters for that reason after entering stock into SAP it is 51 | P a g e

also entered into POS which is used at cash counters. Store WH persons scan each product one by one and enter it into SAP. In case of food bazaar there are many items on which there is no bar code and the content of product bar code is not match with the food bazaar bar code so sometimes bar codes are also attached on the products in the store also and sometimes stores call the vendors and they put the bar codes on the products according to store requirement. 7. Discrepancy note is made: After counting and entering stock in SAP this is the time to make a discrepancy note which tells the difference between invoice/STN and actual qty. and one copy of this discrepancy note is send to zonal office, one to vendor. The overall process of making discrepancy note is same as that of WH. 8. GRN is made: Making GRN is also same as that of WH and the documents are send to zonal office.

 STORAGE PROCESS IN STORES When the GRN of the stock is ready and it also scan in SAP and moved to store warehouse then it is the time to move it to the shelves as soon as possible because a store cannot hold the stock for too long because of the less space availability so it is better that respective departments move their stock from WH to shelves so that more stock comes in WH. Decision of shelves replenishment is taken by Department Managers they decide on what basis stock is moved in the shelves. The employee of the respective departments checks the availability of stock in shelves daily basis and if some shelves are empty then they fill it with merchandise this is a regular process and special attention is paid on weekends because there is more risk in stores in these days. Stock movement is much faster in case of Food bazaar because most of the items are perishables and these are comes more frequently in the store and more space of warehouse is given to Food bazaar.

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 OUTWARD PROCESS IN STORES

1. Get permission from DM or SM: For moving any stock out of the store the SCM department first gets the Permission from the store manager or from the department manager of the same department from which the stock is taken for out warding. DM only decides which stock is dead and when it will be sent back to warehouse or vendor. But in the case of defective items SCM executive of the store decide when this stock is out from the store. 2. Stock is packed for outward: After get permission from the DM or SM back end department persons collected the stock from warehouse and packs it properly for dispatch. 3. Outward or reverse PO is made: When stock is packed a PO is made by SCM executive which is known as Reverse/Outward PO which is used when stock is sent back to vendor and if stock is dispatch to warehouse then only Stock Transfer Note is required. 4. Other documents are made according to requirement: With RPO/STN other documents are also required for out warding the stock from warehouse and these is Gate Pass, OC stamp/waybill which depends on where you send the stock. 5. Security check and outward register entry: Before allow stock to move out from the store security on the out gate check the gate pass and count the no. of cartons according to the gate pass. 6. Stock transferred to warehouse or to vendor: After security check stock is loaded on the vehicle which is arranged by the company transporter

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 SHORTAGES AND DAMAGES OF INVENTORY

Shortages and damages in inventory occur at many points in the whole supply Chain. It occurs from:    

Vendor to warehouse In warehouse From warehouse to store In store

At all the places they occur due to some different regions so we discuss all these in detail. I divide shortages and damages into two categories one when it occurs in warehouse and other when it occurs in store. The fig. A which is given below is show how the stock is moves in the supply chain but the fig. B gives the movement of stock when there is some damage or shortage at the various points in the supply chain.

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1. A: denotes the two way flow of stock from vendor to WH and WH to vendor in case of damaged/defective stock. 2. B: denotes the movement of stock from WH to store to WH stock moves from store to WH in case when some stock is not sale in the store or out of season stock or damaged/defective stock. 3. C: denotes the movement of merchandise from store to customer and customer to store when customer finds any defect in the merchandise. 4. D: denotes the movement of stock directly from vendor to store and also when store sends stock back to vendor due to some defect. 5. E: shows the movement of stock directly from WH to customer because most of the home deliveries in case of consumer durables and furniture fulfilled from WH. 6. F: is the movement of stock from one WH to another. 7. G: denotes the movement of stock from one store to another because if any merchandise is not saleable in one store then it transfers to another. JOB RESPONSBILTIES OF SCM MANAGER:     

Inward of the merchandise. Outward of the merchandise. Maintaining registers. Proper Merchandise handling at ware house. Proper segregations of Cartons. Brand wise Segregation at back storage area.

Register maintained by supply chain department &its purposes 1. 2. 3. 4. 5. 6. 7.

CDC/MDC/RDC& Store Inward register CDC/MDC/RDC& Store Outward register Store to Floor movement Register Tag Inventory Register NSM Register Barcode Control Register Scrap Register 55 | P a g e

ANALYSIS& INTERPRETATION Table 1: Service tenure in Pantaloons NO. OF RESPONDENTS 13

FACTORS Less than 1 yr.

PERCENTAGE 26

1 - 2 yr.

18

36

3 - 4 yr. 5 - 6 yr.

12 4

24 8

More than 6 yr.

3

6

Total

50

100

5 - 6 yr 8%

More than 6 yr 6% Less than 1 yr 26%

3 - 4 yr 24%

1 - 2 yr 36%

INTERPRETATION The above table shows the service tenure of the employees i.e. 26% of the employees are below 1 year, 36% are between 1-2 years, 24% are between 3-4 years, 8% are between 5-6 years & 6% of employees are there in more than 6 years. 56 | P a g e

Table 2: Different categories of stock received at warehouse

FACTORS

No. Of Respondents

Percentage%

Vendor

13

26

CDC/MDC/RDC

9

18

Both None

28 0

56 0

Total

50

100

None 0% Vendor 26%

Both 56% CDC/MDC/RD C 18%

INTERPRETATION: From the above data it is clear that organization receives stocks from different categories of suppliers, i.e. 56% of employee says the stock is received from both Vendors, CDC/MDC/RDC, 26% goes with Vendor only, and 18% goes with CDC/MDC/RDC. It can be concluded that the stock come from both Vendor and CDC/MDC/RDC. 57 | P a g e

Table 3: Frequency of stocks received at warehouse.

NO. OF RESPONDENTS 34

FACTORS Daily

PERCENTAGE 68

Weekly

4

8

Monthly Quarterly

12 0

24 0

Total

50

100

Daily

Weekly

Monthly

Quarterly

68

24

8 0 Daily

Weekly

Monthly

Quarterly

INTERPRETATION The above table shows data clearly about the frequency of receiving stock at warehouse, i.e. as per 68% of employees stock is received on daily basis, 24% says monthly and 8% says weekly. It can be concluded that the major frequency of receiving a stock is daily i.e. on daily basis. 58 | P a g e

Table 4: Replenishment time to move stock from warehouse to floor

15 days

NO. OF RESPONDENTS 0

1 week

0

0

3 days 1 day

4 46

8 92

Total

50

100

FACTORS

PERCENTAGE 0

3 days 8%

1 day 92%

INTERPRETATION: The above data shows the replenishment time taken to move the stock from warehouse to store floor i.e., as per 46% it takes 24hrs (1day) to transfer stock/merchandise to floor and as per 8% it takes 3 days‟ time. It can be concluded that the general pattern of moving stock is 24hrs. 59 | P a g e

Table 5: Average number of stock (in units) received in a day

NO. OF RESPONDENTS 21

FACTORS 2 - 3k

PERCENTAGE 42

More than 5k

18

36

More than 10k None

4 7

8 14

Total

50

100

None

14

More than 10k

8

More than 5k

36

2 - 3k

42 0

5

10

15

20

25

30

35

40

45

PERCENTAGE

INTERPRETATION: The table above describes the average number of stock received in a day, out of 50 respondents 42% says 2-3k of stocks received, 36% says more than 5k, 14% say none and 8% says more than 10K. It can be concluded that the average number of stock received in a day is 2-3k.

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Table 6: Store capacity of warehouse (in units)

FACTORS 50k

NO. OF RESPONDENTS 12

PERCENTAGE 24

2 lakhs

36

72

5 lakhs 10 lakhs

2 0

4 0

Total

50

100

72

PERCENTAGE

24

4 50k

2 lakhs

5 lakhs

0 10 lakhs

INTERPRETATION: Out of 50 respondents, 72% opted for 2lac, 24% for 50k and 4% for 5lac. It can be concluded that the actual capacity of warehouse is 2lac (units)

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Table 7: Occurrence of discrepancy stock

FACTORS Daily

NO. OF RESPONDENTS 19

PERCENTAGE 38

Weekly

31

62

Monthly Quarterly

0 0

0 0

Total

50

100

Daily 38%

Weekly 62%

INTERPRETATION: As per the above data, 62% says there is a chance of availability of discrepancy stock in weekly basis, 38% says daily and none opted for monthly and quarterly. It can be concluded that the discrepancy occurred weekly.

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Table 8: For whom discrepancy occurs

FACTORS Receiver

NO. OF RESPONDENTS 3

PERCENTAGE 6

Transporter

24

48

Supplier Both Transporter & Supplier Total

7

14

16

32

50

100

Receiver 6% Both Transporter & Supplier 32%

Transporter 48%

Supplier 14%

INTERPRETATION: From the above table it is found that, as per 48% of employees discrepancy is created by transporters, 32% says both supplier & transporter collectively responsible for the discrepancy, 14% says discrepancy in created for supplier alone and for 6% it's the receiver who creates discrepancy. 63 | P a g e

Table 9: Time taken for the resolution of the discrepancy

1 - 2 days

NO. OF RESPONDENTS 7

3 - 4 days

27

54

5 - 6 days 1 week

14 2

28 4

Total

50

100

FACTORS

1 week 4%

PERCENTAGE 14

1 - 2 days 14%

5 - 6 days 28%

3 - 4 days 54%

INTERPRETATION: From the above data it is clear that, as per 54% of employees time taken for solving a discrepancy is 3-4 days, for 28% its 5-6 days , for 14% it is 1-2 days and for 4% its 1 week. It can be concluded that the in general in takes 3-4 days to solve a discrepancy. 64 | P a g e

Table 10: How do you find the process of filling discrepancy?

NO. OF RESPONDENTS 18

FACTORS Easy

PERCENTAGE 36

Moderate

14

28

Difficult Can't Say

10 8

20 16

Total

50

100

Can't Say 16%

Easy 36%

Difficult 20%

Moderate 28%

INTERPRETATION: As per the above table it is clear that 36% of employees think the process of filling discrepancy is easy process, 28% says it's moderate, 20% says it is difficult and 16% refers discrepancy filling is not known to them. It can be concluded that the discrepancy filling is an easy task.

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Table 11: Is SAP helpful for the operational purpose?

Yes

NO. OF RESPONDENTS 31

No

0

0

May Be Can't Say

7 12

14 24

Total

50

100

FACTORS

PERCENTAGE 62

Can't Say 24%

May Be 14%

Yes 62%

INTERPRETATION: As per the above table, it is clear that 62% of the employee think using SAP is an easy and effective method, 14% are neutral about their judgment and 24% of employees don't have the enough idea about the usage of SAP. It can be concluded that the use of SAP is helpful in the operational purposes.

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Table 12: How to set warehouse as per platinum standards?

Docket wise

NO. OF RESPONDENTS 0

Month wise

0

0

Season wise Drop wise

41 9

82 18

Total

50

100

FACTORS

PERCENTAGE 0

Drop wise 18%

Season wise 82%

INTERPRETATION: The above data shows the way of managing stock used for maintaining the platinum standard of the warehouse, i.e. 82% of employees had their views towards the season wise arrangement while 18% went for the drop wise arrangement and none of them opted for month or docket wise arrangement. It can be concluded that the stock is managed and kept as the season.

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Table 13: Do you find infrastructure sufficient for carrying out the task?

Yes

NO. OF RESPONDENTS 39

No

4

8

May Be Can't Say

5 2

10 4

Total

50

100

FACTORS

May Be 10%

PERCENTAGE 78

Can't Say 4%

No 8%

Yes 78%

INTERPRETATION: The above data clearly shows that 78% of the employees agreed the infrastructure in sufficient to carry out the task while 10% are partially agreed towards infrastructure, 8% think it's not sufficient and 4% unable to decide. It can be concluded that the infrastructure is sufficient for carrying out the operational activities.

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Table 14: Common mode of Transportation

FACTORS Waterways

NO. OF RESPONDENTS 0

PERCENTAGE 0

Airways

0

0

Roadways All of them

29 21

58 42

Total

50

100

All of them 42% Roadways 58%

INTERPRETATION: The above data shows the common mode of transportation used for the movement of stock & merchandise to the warehouse, i.e. 58% of logistics is carried out only through road ways and 42% using air, water, roadways collectively as per the employees of pantaloons. It can be concluded that the major transportation system used is roadways. 69 | P a g e

Table 15: Which of the following is required to track a delivery?

Factors

No. Of Respondents

Percentage

E - Way Bill No.

9

18

Lorry Receipt No.

34

68

Purchase Order No. Invoice No.

5 2

10 4

Total

50

100

Purchase Order No. 10%

Invoice No. 4% E - Way Bill No. 18%

Lorry Receipt No. 68%

INTERPRETATION: The above data shows using which data a delivery can be tracked, as per result obtained 68% of employees says LR(Lorry Receipt), 18% E-Way Bill No, 10% PO (Purchase Order) and 4% Invoice No. It can be concluded that the major instrument used for tracking a delivery is LR.

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SUGGESTIONS 1. Shortage against PO: This problem is very critical and some of the possible solutions for this problem are that the management applies deduction management techniques for solving this problem. If any vendor is not able to fulfill our demands then company must deduct some amount from the bill of retailer as a penalty for not fulfilling the demand. Company selects minimum two vendors for any specific category of product so that if any vendor is not able to fulfill the demand then we may switch to another one. Company should mention clearly the terms about deduction and return in the agreement held with the vendor. 2. Shortage due to theft during transportation: Many times it is happen that counting of stock is not done just after unloading of stock it is done some time after so if there is a shortage in stock then it is hard to convince the vendor on this issue because vendor sends the right quantity but we don‟t get the qty. according to invoice so to eliminate these kinds of issues counting must be done at the same time and a note is write on the vendor copy of bill so that vendor know that we get less quantity. Security must check at the time of unloading that cartons are in good condition and if there is any damage in cartons then security staff must note it. 3. Damages during transportation from vendor to warehouse: When stock comes from vendor to WH and during this journey if any stock is damaged then it is totally the liability of vendor but we must see that the stock which we get in the WH is good in condition so we must check the stock properly and if any damaged is found in the stock we send it back to the vendor as soon as possible because if we inform them late then vendor think that damages occurs in the WH. We instruct our vendors that stock is packed properly.

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4. Shortage due to unavailability of finding material in Warehouse: To solve this problem first we must train our employee about the method according to which we put the stock in the racks and also tell them where is the particular category is placed and try that the employee who put the merchandise in any section in the WH is responsible for picking merchandise from that section only. We must use Bin cards in the WH as they are not used in many when Article No. is properly printed on the bar code tags. 5. Damages in the Warehouse: For handling damages in the warehouse the first important thing is that company must provide proper conveyors to the WH. Other thing is that the breakable items must not be put near to the aisles like sanitary items, glass items and gift items etc. and heavy items like furniture and consumer durable must put near to exit gate of WH. Proper instruction are also given on how to handle different type of stock and inform our vendors that they must print proper information about which type of stock is in any carton and in spite of writing we use signs for instruction 6. Damages due to improper packaging I see that many of the employees do not know how to packed the stock and they take carton of any size and put the merchandise in it and in this way it is completely the wastage of cartons and stock is also not properly packed, so we must train our employee about how to pack the different type of stock so that they do not pack stock loosely and use proper type of carton this also take less space and less risk of damage 7. Damages during transportation from warehouse to store: From getting rid of these kinds of problem proper packaging is must and driver must have a good in driving and as pantaloons transportation business is taken care by Indo Arya so it is not the problem for pantaloons and all the damages that occur during transportation Indo Arya is responsible. 8. Shortage due to wrong documentation: Company must provide the proper documents, which are required for dispatch of stock from WH, on time and instruct the WH that no stock should be dispatch without the proper documentation 72 | P a g e

CONCLUSION The role of supply chain in Indian organized retail has expanded over the years with the boom in this industry. The growth of the Indian retail industry to a large extent depends on supply chain, so efforts must be made by the Indian retailers to maintain it properly. Usage of sales promotional activities has a direct impact on consumer behavior as it motivates a consumer to buy now rather than in future enhances value of an offer temporarily till the promotion period, encourages switching, reinforce or reward loyalty etc. Therefore, with the generous use of Global and Local Experiences, Indian retailers are going to improve their bottom lines with efficient, management of Supply Chain and Logistics. At the same time, Indian Retail giants with retail stores like Big Bazaar, Pantaloons and Reliance retail are also going to show the world as to how it can be managed in a more innovative and cost efficient manner.

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BIBLIOGRAPHY  LOGISTICS AND SUPPLY CHAIN MANAGEMENT -- Martin Christopher  SUPPLY CHAIN MANAGEMENT, FOR GLOBAL COMPETITIVENESS -- Sunil Chopra, Peter Meindl, D.V.Kalra  WORLD CLASS SUPPLY MANAGEMENT, THE KEY TO SUPPLY CHAIN MANAGEMENT -- Burt, Dobler, Starling  www.supplychaindigital.com  www.supplychain247.com  www.logisticsmgmt.com  www.econominstimes.indiatimes.com  www.financialexpress.com

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ANNEXURE

Format of warehouse inward register S.No.

Date

Security

Security

Description

Inward

Inward

Of Goods

Reference

Reference

No.

Date

Invoice Detail Invoice

Invoice

No

Date

Qty

Inward

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P. O.

L.R Detail

No.

Trans

L.R

L.R

Porter

No

Date

G.R.N Detail Date Qty

Discrepancy Detail No.

Date

Qty

Remarks

Sign. Amm.

Warehouse Incharge

Name

Format of ware house Outward register: S.no. Outward Security Date

Outward

Security Receiving Receiving Description Outward Site

Reference Date

Name

Site

Of Goods

Code

No.

Gate Gate No. of Pass

Pass PKGS

No.

Date (Cartons)

Delivery Detail No. Date Qty. Amm.

Trans

G.R.N. Sign.

Porter Date

Of Ware

Name

House Incharge

SIS/Vendors Inward Register S.N o

Date

Descripti Invoice Detail on Invoic Invoic Inward Inward e e Of Referenc Referenc Goods No Date e e Security

No.

Security

Qty

Inward

Date. 76 | P a g e

P. O.

L.R Detail Trans L.R L.R

G.R.N Discrepancy Detail Sign. Remark Detail Date Qty No. Date. Qty Amm. Warehouse

No Porter No

Incharge

Date

Name

SIS/Vendor Outward Register S.N o

Outwar d

Security

Security

Outward

Outward

Date Referenc e

Referenc e

No

Date

Receivin g

Receivin g

Descriptio n

Site

Site

Of Goods

Name

Code

Gate

No. of

Delivery Note Detail

Transporter

Pass

PKGS

No Date Qty Amm Name .

Date

Carton

Gat e Pass No.

GRN. Sign. Of Date

Ware house Incharge

Hanger Inventory Register Date

Hanger Opening

Qty

Type

Received Qty

Stock

Issued

Closing

Staff

Stock

Name

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Carry Bag Inventory Register Date

CarryBag

Opening

Qty

Issued

Stock

Received Qty

Closing

Staff

Stock

Name

Type

Barcode Control Register S.No

Date

Name of Vendor/

Item Description

Barcode No.

Staff

Receivers

Manager

Signature

Signature

Reason for printing

Printing Qty

Sign of Manager person printing Signature barcode

Soft Tag Issue Register Date

Opening Stock Qty

Oty Received from security

Issued Qty

Closing Stock Qty

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