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Production & Operations Management
Department of Business Administration, University of Lucknow Semester-II 2012
Gaurav Mahajan Ravi Srivastava Prachi Jain Himanshu Katiyar
NMart Lucknow. the guide of the project. Ms. Amit Singh. . Our deep sense of gratitude to Mr.ACKNOWLEDGEMENT We would like to take this opportunity to express our gratitude towards every individual who has helped and supported us in this project. Store Operation Manager. Anu Kohli. for her constant guidance and supervision that inspired us to complete the project with sincerity. Our deepest thanks to Lecturer. for his support and guidance as well as for providing the necessary information regarding the project & for providing us his precious time in order to help us in completing the project.
7. 1. 2. 6. 8. No. 5. CONTENT NMart Retail: Company Profile Suppliers of NMart Lucknow Inventory Management Store location Store layout Processes Undertaken Capacity of Nmart Lucknow Waste Management Quality Assurance Customers Page No. 10. 3. .TABLE OF CONTENT SL. 9. 4.
The company also offers a unique Network plan with a retail concept known as Multilevel Marketing (MLM). Gopal Shekhawat. Mr. However. 2012). Amit Singh. “So. In this business model. Each Associate gets free purchase vouchers of NMART Mall worth Rs. the CMD of the company. was busy in assessing the inventory level and explaining the employees about importance of visibility of products at the store at the same time. commodity trading etc. Crockery. Ltd. one of the fastest growing retail chains in India is a division of Newlook Retails Pvt. Garments. Lucknow. Vegetables. I have few more things to discuss which I would do during shift end briefing”. The company’s corporate office is based at Surat in Gujarat and is headed by Mr. which can be redeemed at any NMART retail outlet across India. Electronic.each month for 48 months. to one of around 60 suppliers the store has and greeted the supplier before he finally disconnected the phone. which has its business in diversified fields such as real state. on discounted rates ranging from 2% to 50%. Singh’s desk. . said Mr. With a gentle smile on his face he finally turned to us. An NMart associate is offered following benefits: 1. “We would finalise the order for the week by today evening and inform you accordingly. Fashion. Nmart has dedicated team of experts that come up with a lucrative plans and offer immense benefits to the members to help grow with the company hand in hand. Grocery.. Eatables. what all do you want to know?” was his question to us and without any delays we had finally started our knowledge session. 220/. which started its operations on November 2011.NMart RETAIL A DIVISION OF NEWLOOK RETAILS PVT. NMart Retail: Company Profile Nmart retail. is an FMCG mall till date (March 31. LTD. company charges onetime fee of Rs 5500 and the customer becomes an Associate (Permanent Shopping Customer) of NMart. Company has around 246 stores across the country which also includes stores in Work in Progress status. etc. the store at Lucknow. thank you for your cooperation”. Singh. “You all may continue with your respective works. Store operation Manager at NMart Retail. NMart Retail stores offer Branded Product range of more than 5000 varieties under one roof such as FMCG. he said to the store employees and they left the room. The employees were quite seriously listening to the valuable information but the informative brief session was soon interrupted by the phone ring at the telephone on Mr.
Singh. NMart decentralised approach of managing retail stores gives all store manager a great deal of autonomy in making decisions at local level. . each store decides its purchases and suppliers on its own and the decision is headed by the store manager. inbound logistic handling can be broadly classified into two types: 1. where centralized team takes the decision on purchase and suppliers. Companies like Big Bazaar has corporate inbound logistic. As discussed with Mr.2.to its Associate. To redeem the voucher one has to go to the mall and verify it online after shopping. Suppliers of NMart Lucknow: NMart has around 60 suppliers and number of suppliers to the store keeps on changing as per the requirement of the store. The voucher must be redeemed in the same month as it is valid for 30 days (not applicable for associates living outside 20 km area from Nmart mall). NMart also offers credit facility of Rs. 1500/. NMart also has many suppliers at local level who supply FMCG products to the store. 3. Corporate Local inbound logistics mean. NMart has around 60000 associates across India and the number continues to rise as the company is promoting this business plan very aggressively. NMart follows local inbound logistics. Selection of suppliers largely depends on the ability of supplier to fulfill the demand of the store within the defined timeline and selection decision solely rests with the store manager. Along with the big names like HUL and P&G. Local 2.
company uses First-in-First-Out inventory technique and has perpetual inventory system. The company does not have any fixed order quantity and quantity ordered depends on demand of product in last few weeks. NMart retail. Talking about NMart Lucknow. NMart has quite unique way of selecting the location for its store. Store can offer ample parking space to its customers. Nmart prefers its stores to be located in less densely populated area because of following reasons: 1. Using such inventory system helps the company to manage inventory in a better manner.Inventory Management: Each Nmart store has small dedicated area located outside the store but in the same premise that of the store to stock its products. Store location & Store layout In which city the store should be? Which location in the city would be the most appropriate for store? Such questions are answered by the operations team based at company’s corporate office in Surat. . The store uses enterprise application Samvik which updates the inventory level with each sale and is used in each store across the country. Company prefers locations which are not at the centre of city and has minimum competitors nearby. Perpetual Inventor describes systems of inventory where information on inventory quantity and availability is updated on a continuous basis as a function of doing business. seasonal factors also influence the quantity to be ordered. Reduces the transportation costs. 3. Customers walking into the store would not enter the store just for the sake of time pass which normally is the case with stores located in densely populated areas and malls. the operations team decides the city for store and identifies some most preferred locations in a particular city. Lucknow. as the store deals with FMCG products tracking the availability of each product type manually can be very tedious. Company focuses more on Multilevel Marketing (Network business plan) 2. With help of proper market analyses and market research. places order to its suppliers on weekly basis and the lead time is around 2-3 days. Besides demand. 4.
Near Aliganj. layout of the store.Once the city and location in city has been decided by the operation team. work starts for the project team which visits the preferred locations and finalises the location for the store. Store Layout WASHROOM STORE MANAGER’S OFFICE FOOD ITEM STOCK G R O C E R Y S E C T I O N F O O D S E C T I O N B E V E R A G E S S E C T I O N N O N F O O D S E C T I O N S T A P L E S E C T I O N P E R S O N A L C A R E S E C T I O N Billing Counter2 Billing Counter1 Customer Care Personal Care Prod ENTER EXIT STORE LAYOUT NMart. Lucknow . and handover their report to the operation team for final approval.
. Received inventory is then updated in Samvik and as per the space available in the store the products are displayed for sale. It purchases its products from various suppliers and offesr it to the customers in its retail stores at discounted rates. The process starts with receiving products from the various suppliers and stocking it at the ware house present in the same premise that of the retail store.Processes Undertaken Suppliers (FMCG products) Store Warehouse (Inventory Updation) Products display at store Sales (Inventory Updation) Re-Order (after7 days) NMart is basically involved in merchandising. Bar codes are planted on each product and they contain every detail about the product.
Once the product is sold. the product is added in weekly purchase list.NMart has a standard sequence in which it displays its FMCG products at all its stores. GROCERY FOOD BEVERAGES NON-FOOD ITEMS STAPLE PERSONAL CARE As soon as customers purchase any product and approach the billing centre for payment. Capacity of the store is lesser in comparison to the big players in the market like Big Bazaar. . but the store holds the products valuing around Rs 40-50 lakhs at any point in time. Lucknow. Capacity of Nmart Lucknow NMart retail. In each store following sequence is used to display the products. is spread across 8500 sq feet and offers FMCG products ranging from food items to personal products. the store manager finally places the order for next week and received the order within 2-3 days from date of order. At the end of the week. The store is focusing on expansion of its capacity and is engaged in adding soft drinks to its offerings. the inventory also gets updated with current count. As soon as remaining count of any product reaches 2-3. which means first category of product that any customer would view soon after entering the stores would be Non-food items. the person at billing counter uses bar code reader to read the product details which is automatically displaced at the screen of the computer.
products display to sales person’s service.the move triggered due to seasonal change. There are different types of mutual agreement in terms of waste management between NMart and suppliers. Also. At present NMart does not have very aggressive expansion plans in terms of the capacity of its stores as the company at the moment is more focused on expanding its network building business plan. In second case. Expired items are dumped by the store. which are finally disposed by the city’s municipality. whereas. 3. The store operates in its full capacity only during peak seasons. Quality management of the store is headed by the store manager and he is responsible for quality delivered by the store. Right from inbound logistics to inventory management. Waste Management Wastes for the company are basically expired items and damaged products. Damaged items are sold to local Kirana shops at lower price. . quality maintenance at each level in monitored by the store manager. some supplier does not take any responsibility of expired products and damaged products once the items have been received by NMart. Quality Assurance As the store is an FMCG mall. NMart chooses one of the following ways of waste management: 1. Damaged items may be offered to customers at highly discounted rates. Some suppliers buy back the expired products and damaged products at discounted rates. in order to get rid of waste. annual audits are conducted by the central quality control team at the store. 2. quality becomes an important parameter as maximum items have a predefined working life.
It promotes its Multilevel Marketing plan aggressively and tries to convert local shop owners dealing in FMCG products and at least one member of each family purchasing from the store into Associate of the company by offering lucrative offers. Company tries to attract maximum customers to its retail shop residing in the city and nearby the city. NMart promotional plan includes advertising during cricket matches as company considers it the best way to reach target customers.Customers NMart offers fast moving consumer goods in its retail store in discounted rates. . Local kirana shops and small retailers nearby the city are also the target customers of the company.
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