INTRODUCTION

(STORE OPERATION AND SUPPLY CHAIN MANAGEMENT)

In Store Operations Binary Spectrum's Retail In-Store Operations solutions enable true multi-channel retailing by delivering a consistent shopping experience across all retail channelsin your stores, on your Web site, and through your catalog or call center. Key business functions include point of sale, store labor management, customer order management, and store inventory management. The recent trends in the in-store operations front have been aimed on optimizing the utilization of space and enhancing the overall productivity of the management processes and resources. One technology which is making waves in this area is RFID, which is an automatic data capture technology which enables a retailer to know the exact location of products, the rightful owners and proactive information of the freshness and misplacement.

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Some of the applications of RFID in store include:

Just in time replenishment Automated and in-time product receipts recording and ASN note matching Automated Proof of delivery Automated and quick order invoice reconciliation Expiration and Seasonal alerts Merchandise Levelling Misplaced Item Alert

Store operations benefits:a) Supply chain- analysis helps the warehouse manager to manage inventory by carrying optimum stocks resulting in optimum stock turns. b) Marketing- it helps the marketing to evaluate the performance of a particular promotion and alter the promotion calendar, if required. c) Stores- it helps the store to carry optimum stocks at all times ensuring highest service levels. d) Staff execution- it helps identify staff training needs and enables immediate corrective actions based on customer feedback. e) Strategy and tactics at all levels- it acts as a guiding star to planners as most of the decisions on future goals and actions are based on past performance analysis and future market information. So analysis is the key to ensuring a high degree of focus and attention to detail. Thus, analysis should be seen as a continuous and execution-related activity rather than an occasional research survey. Also one should remember that over-analysis leads to a stage of analysis paralysis- where there is too much analysis and little corrective action! So it should be kept simple, based on facts and focused on urgent actions of improvement for it to work in any area.

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KEY ASPECTS OF STORE OPERATION

Rise an shine:- the opening of the store lock is the natural beginning of the day for the store. Opening the lock of the store is one of the first activities chronologically in the day beginning activities. First the store manager checks for tampering of the seals on the lock and then the security perform the task of opening all the locks of the store. In case there is tampering of the lock, the store manager informs the manager operations and the security agency. In such cases, naturally, their needs to be an investigation on what exactly was tampered with and did anyone break into steal products etc. The early employees who come in to help get things started up early in the morning are usually the security and the housekeeping people. The opening of the lock is also often a duty performed by rotation among the senior managers or heads of departments at the store who report into the store manager, and are designated duty managers by rotation. These early employees are the ones that have to open the locks, open the doors, and allow morning activities to start so that things are ready when the store has to be opened to employees. The store manager checks tampering of the locks, if all the seals are intact: a) Then the security guard opens the shutters and the doors of the store. b) Once the store is opened, the store manager and the security guard sign the opening/closing register.

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 Housekeeping activities:- housekeeping means keeping the house neat and clean. So housekeeping activities include all those things that go towards the daily cleaning up and tidying up of the store. Shelves are cleaned, as are windows and equipment. Light fixtures are also cleaned, as are signages and all other displays. Toilets and common areas need cleaning too, trolleys have to be stacked properly and bulbs changed if required. The air-conditioning needs to be checked, and any smells in the store taken care of. The floors need to be swept and cleaned thoroughly as well.

Housekeeping activities are generally outsourced to an external agency. Housekeeping activities are performed before the stocks are stacked on the shelves and the store is opened to the customer. Cleanliness is one of the most important elements that customers take for granted in a store. Hence it is important that the store is clean at all times. The responsibility of the housekeeping agency is to keep the store absolutely clean at all times.Some things they do are: a) After the store is opened, the housekeeping staffs begin their cleaning activities.
b) The staffs have to get the housekeeping checklist signed and approved by the store manager.

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 Checking attendance of external agency staff:- the store manager checks the attendance of external agency staff to ensure that all the staff are present. If any of the staff is not present, it is the responsibility of the external agency to replace the absentee staff. This is an early morning exercise too because if manpower is short, then housekeeping work may not get finished on time, and may not be done well either. It may also be that in an external or outsourced area like security there are several absentees, which is a serious issue especially at large store. So ensuring that the set up team is complete is an important early morning task.Some things they do are: a) The manager checks the attendance of the external agency staff. b) If any of the staff are not present, the manager informs the external agency to replace the absentee staff. Good morning employees:- By this time the rest of the store team is arriving and punching in their attendance for the day in the electronic recording system using their identity tags. They come into a beehive of morning buzz with housekeeping trying to finish its work so that employees can take their positions on the shop floor and the cash desks, and at each part of the store from the back office to the various departments on each floor. Staff scheduling is also a key aspect of the morning action. There is a need for the store management to check on attendance and ensure that no department team is understaffed in a way that may negatively impact the days activities. So the store manager checks the staff attendance for the day and if any staff is absent, the duty roster is re-scheduled. The new responsibilities are assigned to the re-deployed staff during morning briefing sessions.Some things they do are: a) The manager checks the attendance register to check the attendance of the staff. b) In case any staff is not present, the manager re-schedules the duty roster.
c) The manager assigns the responsibilities among other staff.

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ANALYSIS OF STORE OPERATION

Store operations need a lot of analysis as follows: Execution standards- Here the performance parameters are evaluated ( for example the service standards evaluation, product display evaluation, house keeping evaluation etc. are done by conducting store audits on a regular basis.) Traffic analysis- Apart from the above qualitative data, quantitative performance indicators like customer footfalls, conversion rates, average basket sizes etc. are generated from the system and analyzed to improve store performance.

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STORE OPERATION SUPPORT

Safety and security aspects of customer management:There is several safety and security related aspects of store operations. While some of these such as emergency handling and fire safety drills are for the customers physical safety, there are others like physical stock taking which help identify pilferage etc. from a store security perspective. Equipment maintenance is also something, which impacts customer safety as well as security. These are planned for and executed as special activities and do not form part of the daily activities unless required naturally. However, staff needs to know what these are and how to execute them just as any other execution work. The activities that form part of this section include scheduled activities, as well as, exigencies. These activities are an important part of the store activities as they include instructions to be followed in emergency situations. Special activities are important for store operations because the staff panic during emergency situations and fail to implement possible solutions. The description of these processes will guide the staff to take quick action during such situations. The process definition for the various special activities include the following: 1) Physical stock take/inventory:- physical inventory is a method of gathering stock information by using an actual physical count and inspection of the merchandise. That is the merchandise in the store is physically counted by the store staff and crosschecked with the system stock and discrepancy is recorded. Once the staff counts all the stock, stocks are reconciled.
If there is a discrepancy between the physical stock and system stock, a discrepancy report is generated and once the report is generated, SKUs having either a positive or a negative discrepancy are analyzed. 2)

Safety drill:-

all store staff have to be well-informed about safety measures to be

undertaken in case there is a fire or other emergencies. Fire emergency guidelines usually ask the store manager and staff to ask the customers in the store not to panic. All customers are asked to leave the store, and the store team or manger calls the fire brigade simultaneously. The store manager and staff try to extinguish fire with the fire extinguishers available in the store without endangering the lives of customers or themselves till help TYBMS 7

arrives. There could be a small fire, which can be doused by staff themselves if they are trained in the use of fire extinguishers. Stores have to comply with fire safety norms as part of their clearances when they are built.

3) Maintenance of equipment:- individual equipment dockets are maintained for every type of equipment in the store. There are annual maintenance contracts (AMC) for all major equipment elevators to computers to ensure they work well. The store manager in charge usually checks the renewal dates for all the AMCs on the forts of every month as a routine and maintenance staff updates the equipment docket when a new asset id added to the store. You may have heard of accidents happening in the modern stores because of faulty equipment or poor usage of equipment, both of which are dangerous for customers. 4) Emergency contacts:- the store security and the store manager usually maintain a contact list with all the important services and their contact numbers for help as and when required by the store. These would range from fire department to the police and the hospitals, municipal authorities and so on. The store security or manager reviews and updates the detail in the contact list regularly in most stores. 5) Shoplifting:- shoplifting is one of the ugly realities in retail, which all retail organizations face. It is important that tact and diplomacy is used in facing the situation, so that other customers in the store donot feel uncomfortable or threatened. Usually, in case a customer is found taking stocks out of the store without it being billed, the customer is taken to the backroom and asked if he would like to pay for the items. In case he doesnt have the money to pay for the items, he is handed over to the police authorities.
Sometimes, customer walks out of the store with some products without billing or paying for them. This too amounts to shoplifting and requires to be treated tactfully. There is always possibility that a customer has made a mistake, and so store security has to first ensure that the customer has a chance to explain his side of things before taking any action. Under no circumstances is the customer mistreated. In the first instance, the customer is asked to pay for the goods that have been found. In all such cases, the department managers and the store manager are informed immediately and they are usually active in managing such situations.

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6) Theft:- every morning the supervisor and the security supervisor take a walk around the store, as soon as the back entrance is opened. If the doors of the stores are open or the safe is broken or there seems to be evidence that somebody has broken into the store the store manger and the police are contact and the staff are instructed not to try and change anything within the store or toucha anything. The staff and the external agency personnel are asked to stay outside the store till the police arrive and investigate things. A detail account of the event in the store is given to the store management and the police. 7) Accident /medical emergency: - if a customer is hurt within the store or has a serious health problem while shopping in the store, the customer is provided with the first-aid usually and if it is a serious problem, the ambulance is called to take the customer to a hospital for medical assistance. If a customer or a staff member is hurt/unwell within the store or some serious health problem has occurred within the store, one of the staff members follows these instructions: a) The customer is provided first aid from the frost-aid kit in the store. The staff member follows instruction given in the kit, depending on the nature of illness/ injury.
b) If it is a serious illnesses injury, the store manager is informed immediately. He calls for an ambulance and the nearest medical practitioner to attend to the emergency.

8) Store safety: - for store sagety, the following equipment are present in the store and placed at the designated place:
There are fire extinguishers for fire prevention, burglar alarms for theft detection and first-aid kits for medical assistance containing cotton, antiseptic liquid, bandages, scissors, antiseptic cream, sugar pouch, and instruction fors providing first-aid in the various situation. Emergency assistance contact numbers are displayed in the back room and all store staff are trained to ensure that they are thoroughly familiar with the placement of equipment. First-aid supplies are checked and replenished regularly, fire extinguishers are serviced as per schedule and the managers ensure that all store staff are trained to use these safety equipment effectively.

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9) Armed robbery:- security is a big challenge in the modern retail, with such a large number of customers walking in and out of the stores. The security officer ensures that any customer looking suspicious or carrying offensive objects are questioned and detained. Though rarely we see this but customers carrying visible firearms or other weapon have to be immediately questioned and detained. Security guards and the store staff are trained to look out for trouble situations such as when a group of person enters the store aggressively and shows bad intent. However, if an armed attack does take place ever staffs are usually taught to protect customers and themselves first and not to get aggressive with armed robbers. In such cases, the cashier hands over the cash to the armed person, with no resistance or refusal shown to hand over the cash. Once the armed person/ persons leave the store, the police are informed immediately and pursuit begins. The key thing at that time is to keep customers calm, safe and out of harms way. 10) Power failure: - it can be unnerving when the lights go out in a brightly lit store and you are plunged into darkness. Usually in the case of the power failure, the generators are started immediately or take a few moments to come alive. Store managers and the staff apologize to the customer for the inconvenience, and usually watch out for children who may panic in such situations. 11) Riots and bandhs: - during situations such as tiots and bandhs, the store manager and the staff have to protect the customers in the store as well as the employees and the store itself. Usually there is advance information of such possibilities and the manager calls the area sales manager of the respective and seeks his/her permission to close the store. However, when the trouble is sudden then they have to shutter down the store as fast as possible from inside, and security staff try to deal with any person trying to damage the store or hurt store staff till the police arise.

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CURRENT OPERATION SCENARIO

In the current socio economic scenario of globalization, growing middle class spending, expectation of more for less, information technology is not a mere tool for enhanced operational efficiencies; it is seen as a means for survival and a vehicle for competitiveness and growth. Binary Spectrum's strategy of industry focus is in line with this requirement of the retail industry and we help our customers use information technology to their strategic advantage. We at Binary Spectrum understand retailer's needs from a business perspective and help them in overcoming their current challenges and achieve high growth targets through cutting edge and innovative e-business, store operations and supply chain management/ execution solutions.

Our retail solutions cover the entire spectrum of retailing including: Sell Side: Sell side refers to all those activities and functions related to the selection and purchase of products which the customer directly uses.

following gives a list of the various components on the sell side Point of Sale (POS) for brick and mortar stores Catalogs and Product Listing Search Content management and data feed integration Dynamic Pricing and Discounts Orders Billing and Consolidation Shipment and Tracking Inventory Management Personalization Integration with Warehouse/Backoffice, Payment Gateways, Shipment tracking, Market places,search engines.

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Buy Side: Buy side refers to all those functions which relate to the procurement of products and business partner integration. The Buy Side applications include: Sourcing and Procurement of Products considering Distribution and Logistics integration Advanced Planning and Scheduling Warehouse/Inventory Management Merchandise and Assortment

Customer Support and Business Development: Customer support and business development are tools for retaining customer, reinforcement of brand loyalty and growth of business from existing as well as new clientele. The focus is to have timely information and customizability for support functions. The various applications on the customer support and businees development include: After sales service Customer segmentation and direct sales Customer Information System Customer Loyalty Marketing Management Product and applications knowledgebase Data Warehouse Business Intelligence and Analytics Data Feed International Sales Vendor Marketing Marketing Web services

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STORE ATMOSPHERE
The store must offer a positive ambience to the customers for them to enjoy their shopping and leave with a smile.

The store should not give a cluttered look. The products should be properly arranged on the shelves according to their sizes and patterns. Make sure products do not fall off the shelves.

There should be no foul smell in the store as it irritates the customers. The floor, ceiling, carpet, walls and even the mannequins should not have unwanted spots.

Never dump unnecessary packing boxes, hangers or clothes in the dressing room. Keep it clean.

Make sure the customers are well attended. Dont allow customers to carry eatables inside the store.

Cash Handling

One of the most important aspects of retailing is cash handling. It is essential for the retailer to track the daily cash flow to calculate the profit and loss of the store.

Cash Registers, electronic cash management system or an elaborate computerized point of sale (POS) system help the retailer to manage the daily sales and the revenue generated.

Prevent Shoplifting/Safety and Security

The merchandise should not be displayed at the entry or exit of the store. Do not allow customers to carry more than three dresses at one time to the trial room. Install CCTVs and cameras to keep a close watch on the customers. Each and every merchandise should have a security tag. Ask the individuals to submit carry bags at the security. Make sure the sales representative handle the products carefully. Clothes should not have unwanted stains or dust marks as they lose appeal and fail to impress the customers.

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Install a generator for power backup and to avoid unnecessary black outs. Keep expensive products in closed cabinets. Instruct the children not to touch fragile products. The customers should feel safe inside the store.

Customer Service

Customers are assets of the retail business and the retailer cant afford to lose even a single customer.

Greet customers with a smile. Assist them in their shopping. The sales representatives should help the individuals buy merchandise as per their need and pocket.

The retailer must not oversell his products to the customers. Let them decide on their own.

Give the individual an honest and correct feedback. If any particular outfit is not looking good on anyone, tell him the truth and suggest him some better options.

Never compromise on quality of products. Remember one satisfied customer brings five more individuals to the store. Word of mouth plays an important role in Brand Promotion.

Refunds and Returns

Formulate a concrete refund policy for your store. The store should have fixed timings for exchange of merchandise. Never exchange products in lieu of cash. Never be rude to the customer, instead help him to find something else.

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Visual Merchandising

The position of dummies should be changed frequently. There should be adequate light in the store. Change the burned out lights immediately. Dont stock unnecessary furniture at the store. Choose light and subtle colours for the walls to set the mood of the walk-ins. Make sure the signage displays all the necessary information about the store and is installed at the right place visible to all.

The customers should be able to move and shop freely in the store. The retail store should be well ventilated.

Training Program

The store manager must conduct frequent training programs for the sales representatives, cashier and other team members to motivate them from time to time. It is the store managers responsibility to update his subordinates with the latest softwares in retail or any other developments in the industry. It is the store managers responsibility to collate necessary reports (sales as well as inventory) and send to the head office on a daily basis.

Inventory and Stock Management

The retailer must ensure to manage inventory to avoid being out of stock. Every retail chain should have its own warehouse to stock the merchandise. Take adequate steps to prevent loss of inventory and stock.

Current Trends in Retailing The retail industry over the past decade has been seen as the harbinger and an indicator of economic growth and spending power globally. It has transformed itself into global phenomena and has been a scene of constant change and innovation. This growth has come along with some serious challenges whilst increased competition added by economic slowdown, which has had a negative impact on profit margins. The emergence of internet as a tool for communication and the learnings from Dot Com failure has made the industry more cautious in its spending. Therefore the focus over the last decade has been on increased productivity, cost cutting at the same time having more enhanced focus on customer satisfaction and retention. The latest trends reflect the spending
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power, lifestyles, tastes, time available, geographies; loyalties etc. apart from these, there have been a lot of initiatives to improve the productivity and efficiency of the supply chain, better vendor management and efficient global operations. The following are some of the recent trends seen in the industry and that have lots to offer to businesses and customers. Integrated Multi Channel Retailing (IMCR) In-store Operations CRM Initiatives Vendor Managed Inventory Retail Analytics RFID CPFR EDIINT

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RETAIL STORE ADVERTISING

The mechanism of selling products in small quantities from fixed locations to the customers for their end use is called as retailing. In the current scenario where the end-user has several options to rely on, it is essential that the retailer promotes his brand well amongst the masses. Let us go through some tips to promote a retail brand well:

Signage
Signboards go a long way in creating brand awareness and promoting a particular brand.

The signage must display the name as well as logo of the retail store. It must be installed at the right place visible to all even from a distance. It should not be very small. Small signages fail to attract the customers. Choose the right paint colour. Dont add unnecessary information. Keep it simple but informative. Make sure the signage attracts the customers into the store. Choose the right theme.

Advertising
Advertising is a strong medium which influences the buying decision of the customer and prompts him to shop. The retailer must ensure to communicate the USPs of his brand to the target customers well through various modes of advertising. The advertisement must be eye-catching for the end-users to click on them.

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Various ways of Advertising

1. Billboards Billboard is one of the best ways of out of home advertising. Out of home advertising refers to creating awareness amongst the individuals when they are out of their homes.

Install hoardings, banners, bill boards at strategic locations such as heavy traffic areas, major crossings, railway stations, bus stands etc to entice the customers. The retailer must ensure that the banners get noticed and bring results.

Newspapers, Television and radio are also effective ways to promote a brand. Television reaches a wider audience and makes the store popular amongst all.

The advertisement should be a visual treat, appeal the customers and prompt them to visit the store.

2. Coupons

Coupons are an effective way of promoting a brand as they offer some kind of financial benefit to the customers in the form of discounts and rebates and thus attracting them into the store.

Coupons help in furthering the brand image of the retail store without much investment.

More and more people visit the stores to redeem the coupons, thus making the brand popular.

Discounts, sale, rebates are good ways to promote a brand.

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3. Private Label

Private label is an effective way to promote ones brand at low costs. Products manufactured by one company but sold under another companys brand name are called Private Label Products.

Create your own website. Print your own calendars, diaries, planners, table tops with your stores name, address as well as logo. Such an activity creates awareness among individuals.

Always keep your visiting cards handy and distribute them to as many people as you can.

In the current scenario, social networking sites go a long way in promoting brands. Create communities and invite people to join the same.

Customer loyalty programs help to retain customers and attract new individuals to the store.

Create a positive ambience at the store. Nothing works better than customer satisfaction in the retail industry. One satisfied customer brings ten new customers along with him.

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STORE OPERATION PRICING STRATEGY

The sale of goods from fixed points (malls, department stores, supermarkets and so on) to the consumer in small quantities for his own consumption is called as retail. According to the concept of retailing, a retailer doesnt sell products in bulk; instead sells the merchandise in small units to the end-users.

Retail Pricing Cost Plus Pricing Mechanism

Every organization runs to earn profits and so is the retail industry. Cost plus pricing works on the following principle:

Cost Price of the product + Profit (Decided by the retailer) = Final price of the merchandise.

According to cost plus pricing strategy the retailer adds some extra amount to the actual cost price of the product to earn his share of profits. The final price of the merchandise includes the profit as decided by the retailer.

Cost Plus Pricing

Cost plus pricing strategy takes into account the profit of the retailer. Cost plus pricing is an easy way to calculate the price of the merchandise. The increase in the retailer price of the merchandise is directly proportional to the increase in the cost price.

The customers however do not have a say in cost plus pricing.

Manufacturer Suggested Retail Price (Also called List Price or Recommended retail price) According to manufacturer suggested retail pricing strategy the retailer sets the final price of the merchandise as suggested by the manufacturer.

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MSRP

The retailer sells his merchandise at a price suggested by the manufacturer.

Condition 1

The retailer sells the product at the same price as suggested by the manufacturer.

Condition 2

The retailer sells the merchandise at a price less than what was suggested by the manufacturer - Such a condition arises when the retailer offers Sale on his merchandise.

Condition 3

Retailers initially quote an unreasonably high price and then reduce the price on the customers request to make him realize that a favour has been done to him. A condition of Bargain - where the customer negotiates with the retailer to reduce the price of the merchandise.

Competitive Pricing
The cut throat competition in the current retail scenario has prompted the retailers to guarantee excellent customer service to the buyers for them to prefer them over their competitors.

The price of the merchandise is more or less similar to the competitors but the retailers add on certain attractive benefits for the customers. (Longer payment term, gifts etc.)

The retailers ensure that the customers leave their store with a smile to have an edge over the competitors.

He tries his level best to offer better services to the customers for a better business in future.

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Pricing Below Competition

According to pricing below competition policy

The price of the merchandise is kept lesser than what is being offered by the competitors.

Prestige Pricing (Pricing above competition)

According to prestige pricing mechanism, the price of the merchandise is set slightly above the competitors. The retailer can charge higher price than the competitors only under the following circumstances: 1). Exclusive Brands at the store. 2). Brand image of the store 3). Prime location of the retail store 4). Excellent customer service 5). Merchandise not available at any other store 6). Latest Trends

Psychological Pricing

Certain price of a product at which the consumer willingly purchases it is called psychological price.

The consumer perceives such prices to be correct. A retailer sets a psychological price which he feels would meet the expectations of the buyers and they would easily buy the merchandise.

Multiple Pricing

According to multiple pricing, the retailer sells multiple products (more than one) for a single price.

The retailers combine few products to be sold for a single fixed price. 3 Shirts for $100/- or 3 Perfumes for $20/- and so on.
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TYPES OF RETAIL STORE OUTLETS

Department Stores A department store is a set-up which offers wide range of products to the end-users under one roof. In a department store, the consumers can get almost all the products they aspire to shop at one place only. Department stores provide a wide range of options to the consumers and thus fulfill all their shopping needs. Merchandise: Electronic Apparels Jewellery Toiletries Cosmetics Footwear Sportswear Toys Books CDs, DVDs Examples - Shoppers Stop, Pantaloon

Discount Stores Discount stores also offer a huge range of products to the end-users but at a discounted rate. The discount stores generally offer a limited range and the quality in certain cases might be a little inferior as compared to the department stores. Wal-Mart currently operates more than 1300 discount stores in United States. In India Vishal Mega Mart comes under discount store. Merchandise: Almost same as department store but at a cheaper price.

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Supermarket A retail store which generally sells food products and household items, properly placed and arranged in specific departments is called a supermarket. A supermarket is an advanced form of the small grocery stores and caters to the household needs of the consumer. The various food products (meat, vegetables, dairy products, juices etc) are all properly displayed at their respective departments to catch the attention of the customers and for them to pick any merchandise depending on their choice and need. Merchandise: Bakery products Cereals Meat Products, Fish products Breads Medicines Vegetables Fruits Soft drinks Frozen Food Canned Juices

Warehouse Stores A retail format which sells limited stock in bulk at a discounted rate is called as warehouse store. Warehouse stores do not bother much about the interiors of the store and the products are not properly displayed.

Mom and Pop Store (also called Kirana Store in India) Mom and Pop stores are the small stores run by individuals in the nearby locality to cater to daily needs of the consumers staying in the vicinity. They offer selected items and are not at all organized. The size of the store would not be very big and depends on the land available to the owner. They wouldnt offer high-end products.

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Merchandise: Eggs Bread Stationery Toys Cigarettes Cereals Pulses Medicines

Speciality Stores As the name suggests, Speciality store would specialize in a particular product and would not sell anything else apart from the specific range.Speciality stores sell only selective items of one particular brand to the consumers and primarily focus on high customer satisfaction. Example -You will find only Reebok merchandise at Reebok store and nothing else, thus making it a speciality store. You can never find Adidas shoes at a Reebok outlet.

Malls Many retail stores operating at one place form a mall. A mall would consist of several retail outlets each selling their own merchandise but at a common platform.

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E Tailers Now a days the customers have the option of shopping while sitting at their homes. They can place their order through internet, pay with the help of debit or credit cards and the products are delivered at their homes only. However, there are chances that the products ordered might not reach in the same condition as they were ordered. This kind of shopping is convenient for those who have a hectic schedule and are reluctant to go to retail outlets. In this kind of shopping; the transportation charges are borne by the consumer itself. Example - EBAY, Rediff Shopping, Amazon

Dollar Stores Dollar stores offer selected products at extremely low rates but here the prices are fixed. Example - 99 Store would offer all its merchandise at Rs 99 only. No further bargaining is entertained. However the quality of the product is always in doubt at the discount stores.

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INTEGRATED MULTI CHANNEL RETAILING (IMCR)

Integrated Multi Channel Retailing (IMCR), refers to the seamless integration of the various sales and service channels provided by the retailer to the customer. An item ordered through one channel can be received through another channel and returned through a third channel. Implementation of multi-channel retailing from IT perspective encompasses the following: Based on the lifestyle of the market segment, have a clear understanding of the various channels customers would be comfortable in using Analyze the partnership, distribution and franchisee model in use and the likely changes due to new multi-channel requirements Do a gap analysis on the existing infrastructure and multi-channel needs Integrate the infrastructure covering the following areas Product Catalog Inventory and Merchandise Pricing POS Shipping After Sales Service Franchisee/ Distributor Integration Promotions and Discounts Some of the technology requirements for IMCR are Online portal having catalogs and shopping on the Internet Integration with mobile phones and hand held devices Secure online payment payments and gateway integration Supplier B2B messaging hubs and extranets Integrated inventory management and product search facilities Usage of messaging standards and protocols like X12, EANCOM, EDIFACT and XML and POS standards like ARTS

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SUPPLY CHAIN MANAGEMENT

Supply is simply explained as making goods and services available to consumers in response to their needs conveniently and efficiently. If your company makes a product from parts purchased from suppliers, and those products are sold to customers, then you have a supply chain. Some supply chains are simple, while others are rather complicated. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured. A supply chain is comprised of all the businesses and individual contributors involved in creating a product, from raw materials to finished merchandise. Examples of supply chain activities include farming, refining, design, manufacturing, packaging and transportation. Retail companies become involved in supply chain management in order to control product quality, inventory levels, timing, and expenses. In a global economy, supply chain management often includes dealings with companies and individual contributors in other countries, which requires involvement in politics, trade and tariff laws, quality control, and international relationships. To ensure that the supply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management processes and associated technology. Supply Chain Management has three levels of activities that different parts of the company will focus on: strategic; tactical; and operational. 1. Strategic: At this level, company management will be looking to high level strategic decisions concerning the whole organization, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales markets.

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2. Tactical: Tactical decisions focus on adopting measures that will produce cost benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory.

3. Operational: Decisions at this level are made each day in businesses that affect how the products move along the supply chain. Operational decisions involve making schedule changes to production, purchasing agreements with suppliers, taking orders from customers and moving products in the warehouse.
Supply chain features:-

The key features of effective supply chain are as follows: Many components, each vital Multiple products, one supply chain Cross-functional co-ordination Technology dependent Transportation and logistics dependent

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Factors influencing supply:-

Demand aggregation Supply infrastructure Distribution networks Production capacity Financial and commercial terms Consumer off-take

Supply chain operation processes:-

There are 2 different ways to view the processes performed in a supply chain: Cycle view and Push and pull view

3 dimensions of supply chain planning: Customer relationship management Internal supply chain management Supplier relationship management

Execution elements of supply chains in modern retail:-

Cross-functional teamwork Buying co-ordination Total cost analysis Long term focus.

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ELEMENTS OF THE SUPPLY CHAIN

A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer. 1. Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility. 2. Planning: The requirement triggered by the customers sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customers orders. To manufacture the products the company will then have to purchase the raw materials needed. 3. Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customers orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date. 4. Inventory: The raw materials are received from the suppliers, checked for quality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the items they delivered. The raw materials are stored until the production department requires them. 5. Production: Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. After the items have been completed and tested, they are stored back in the warehouse prior to delivery to the customer.

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SUPPLY CHAIN MANAGEMENT TECHNOLOGY

If a company expects to achieve benefits from their supply chain management process, they will require some level of investment in technology. The backbone for many large companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle. Since the wide adoption of Internet technologies, all businesses can take advantage of Web-based software and Internet communications. Instant communication between vendors and customers allows for timely updates of information, which is key in management of the supply chain.

Quality in the Supply Chain

To help improve customer satisfaction, greater emphasis is given to the aspect of quality in the supply chain. 1. Benchmarking in the supply chain: Supply chain operations within an organization should be constantly reviewed to identify where improvements can be made or deficiencies eliminated. One method to help do this is to perform a series of benchmarking tests on their supply chain processes. This reviews the methods involved in benchmarking supply chain processes. 2. Total quality management (TQM): Total Quality Management (TQM) is an approach that seeks to improve quality and performance, which will meet or exceed customer expectations. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. This looks at the history and implementation of TQM.

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3. Warehouse safety: Safety in American warehouses is regulated by a series of standards from the Occupational Safety and Health Administration, commonly known as OHSA. The main focus of OSHA is to prevent work-related injuries, illnesses, and deaths. This examines the most frequent citations given by OSHA and some of the practical solutions that can be employed in the warehouse. 4. Food quality and the supply chain: Contamination of globally sourced foods is causing questions to be asked about what can be done by companies to ensure that the imports they are receiving are safe. This discusses the challenges of supply chain quality management when global sourcing is involved. 5. New communication standard improves supply chain quality: A new electronic Certificate of Analysis (CoA) has been announced by Rosetta Net, the non-profit consortium for the development of business process standards. US Customs had been pressing for increased security of supply chain communications and this explains the approach taken by Rosetta Net to meet these new standards. 6. Global supply chain: Monitoring Quality in China: Batches of the drug, Heparin, that were made in China have been found to be contaminated and may have led to the death of 19 people. This looks at the challenges of maintaining a successful quality control program when dealing with offshore production.

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7. Rising dependence on Supply Chain Quality: Manufacturers are spending more and more money on quality control to provide a quality product and avoid customer returns. Companies are integrating the new quality systems with their other technologies to leverage supply chain efficiencies. 8. Quality Control Software boosts Profit: Most executives see quality control and quality control software to be an expense. This shows that the implementation of quality control software actually made a positive difference to the bottom line.

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Supply Chain Model

There are a number of different modeling techniques that have been used to model the supply chain. Measures of warehouse productivity: Warehouse productivity is a number of measurements that management will analyze to monitor the performance of their warehouse operations. The basis of many of the measures used in warehouse productivity is based on how much it costs to perform an operation. This looks at a number of measures used in warehouse productivity. Value chain model of tomorrow: Small to midsize consumer products companies are subject to the same macro economic trends as their larger competitors. This discusses why small and midsize businesses should examine the new demand driven supply chain models and why they are better equipped to take advantage than their larger competitors. Operations research for supply chain model: Pressured by raw material suppliers and demanding retailers, chemical manufacturer Rohm and Haas saved millions of dollars by using operations research to organize its supply chain model. This discusses the ways Rohm and Haas used operations research to define its supply chain model for the Performance Polymers division.

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Supply chain operations reference model (SCOR): The Supply Chain Council has adopted a model that us a crossindustry standard diagnostic tool for supply-chain management. The Supply Chain Operations Reference model (SCOR) is a management tool and spans from the supplier's supplier to the customer's customer. This is an overview of the SCOR model and explains how the model can be applied to your business.

Supply chain modeling using simulation: The management of the supply chain is important to the success of a business. Organizations are performing modeling to investigate changes they may make to improve efficiency in the supply chain. Simulation permits the evaluation of operating performance prior to the execution of a plan. This discusses the use of simulation in supply chain modeling. Model for Supply Chains in Construction: This explains how they have created supply chain models for the construction industry.

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SUPPLY CHAIN STAGES:A supply chain may involve a variety of components and players. These supply chain stages include as follows: Customers Retailers Wholesalers/distributors Manufacturers Component/raw material suppliers

Supply chain management challenges in modern retail or store operations: Faster innovation and shorter product life cycles Multiple products, brands and variety Outsourcing of the supply chain Global competition and sourcing Fewer differentiators in supply chain execution New customer expectations and demands

Strategic challenges for supply chains:Supply chain responsiveness includes a supply chains ability to do the following:
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Meet a high service level Handle supply uncertainty

Co-ordination challenges in modern retail supply chains:-

Poor performance incentive program design Poor forecasting methods Operations planning issues Pricing problems Poor behavior and teamwork

Impact of supply chain management on business performance:-

Examining the following impact areas can do it: Impact area 1: sales performance Impact area 2: store performance Impact area 3: staff performance Impact area 4: service perception Impact area 5: operations performance

Business targets influenced by supply chain management:-

Days sales outstanding Incremental fixed cost per order Average sale price Average order size

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Product management and supply chain management:-

Market assessment Product targets estimation Sales forecasting Optimum orders Operations involvement Customer communication Supply chain targets

Product management linkages in supply chain management:-

Supply chain linkage: 1. Which customers to target 2. How to target customers 3. What products to offer 4. How to price products, and 5. How to manage the actual campaigns targeting customers

Sales linkage Ongoing business linkage Customer communication linkage Demand forecasting linkage Vendor network management linkage Demand fulfillment linkage

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RESEARCH AND ANALYSIS

Aim:

To study the strategies of store operation and retailing of RELIANCE FRESH.

Sample size:

Out of 20 respondents, there are 12 male respondents and 8 female respondents.

Sampling technique: Convenience.

Limitations:

Respondents were unable to understand and were not ready to answer properly.

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DATA ANALYSIS OF RELIANCE FRESH

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 From where did you came to know about the store?

RESPONSES NEWSPAPERS BANNERS TELEVISION RADIO NO. OF RESPONDENTS 8 4 5 3

NO. OF RESPONDENTS
9 8 7 6 5 4 3 2 1 0 NEWSPAPERS BANNERS TELEVISION RADIO NO. OF RESPONDENTS

ANALYSIS:
From the above graph, it shows that most of the consumers are come to about reliance fresh by the news papers and then banners, television and radio.

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 Did you like the staffs behaviour?

RESPONSES YES NO

NO. OF RESPONSES 12 8

NO. OF RESPONSES

40% YES NO

60%

ANALYSIS:
From the above pie chart, 60% of the people like the behavior of staff.

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 Is the place hygienic?

Responses Yes No

No. of responses 16 4

No. of responses

20%

Yes No

80%

ANALYSIS:
From the above graph, it shows most of the consumers means 80% like place and environment of the store.

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CONCLUSION

People management is the most important aspect of store operations, as it decides how well a retailer performs on a day-to-day basis. Therefore the role of store managers as good people leaders is even more vital in retail operations. Thus, supply chain management is the most required element in store operations when it comes to people management, smooth and continuous flow of goods, etc.

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BIBLIOGRAPHY

Store Operation Management o SMU-Directorate of Distance Education Supply Chain Management o SMU-Directorate of Distance Education

References www.managementparadise.com www.dlink.com www.indiatimes.com

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