Segmented Servicing Model

BY Gandharv Madan Vishrut Shukla Mohit Khandelwal

Problem Overview
Sales & Share Growth Objective
Objective of adding smaller kirana stores under direct coverage. RoI on small throughput stores is less while the ir presence is more. Low productivity of salesman 30% as compared to 70% on other stores.
Store Type Wholesale Large Grocers Grocers Chemists Large Kiranas Small Kiranas % of Stores % Turnover Contribution 2% 13% 16% 38% 25% 24% 12% 11% 9% 9% 36% 5%

Major Costs Involved

Cost Breakdown Delivery 31% Ordering 35% Storage 18% Banking 9% Admin 7%

Order Booking Stationary Monthly Sales Meeting Device Cost

63% 10% 15% 12%

The cost of ordering and delivery is high as compared to the returns generated by the small kiranas. Order Booking is the major cost driver and hence this has to be tackled for small kirana stores. The service model for small kirana stores has to be different from the existing common service model.

Customized Apps for small Kirana Stores

Customized Apps for small Kirana Stores

User customized app (Designed in vernacular language) Application for Kirana Store Owners Unique user identification Key given to each Kirana store owner

App displays list of the last 3 orders and the SKUs ordered
Re-order point alert: Option to automatically reorder SKUs at a particular re-order point Timeline- Alerts the retailer that only n days worth of inventory remain for a particular SKU QR-Code or Product Code: Option to enter the QR code or product codes of particular SKUs to get information on trade schemes Retailer information: Historical order value can be displayed Tracking Finances & Incentives accruing to the retailer Information alerts regarding volume discounts and trade schemes Requirements- Android based mobile phone with Internet connectivity Delivery Scheduling Order tracking Financial Assistance For Kirana Store owners who do not own supporting Mobile Phones Credit schemes can be initiated Cost can be recovered from the billed value for next 3 months

Value Added Services

Use of SMS for orders by Very Small Kirana Stores

Target Solution Benefits Those Kirana stores which are very small and have a very low contribution towards sales

Order for products through SMS. Specific format for messaging. The kirana store manager has to send an SMS detailing product SKU desired, quantity and expected deadline for receiving the product along with payment method.

Reduced cost as physical collection of orders is replaced by the SMS based ordering. This reduces the major component of cost, ie, the ordering cost which becomes much relevant when dealing with very small throughput kirana stores.

Proposed Architecture for Point of Sale App

Mobile Frontend Service Delivery Layer Application Cloud Layer Data Cloud Layer

Frontend Web Application Orders via POS Device Orders via SMS

Frontend POS Mobile App Orders via Web Orders via POS Mobile App

Application & BI Processing

Data (SAP Distributed Backend)

Thank You!