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Submitted by:
Arun Kumar Singh
DOJ- 15 Nov, 2012

1. Company structure and working culture
2. E-commerce
3. : Category culture and sourcing team
4. General Skills
5. Sourcing workflow
6. Inventory model
7. Category Process-1
8. Re-ordering Algo
9. Category Process-2
10. Damaged Good Process
11. PP Process-1
12. Excel Skills
13. PP Process-2
14. Finance Terms and Tax Calculation-1
15. Business Development
16. Finance Terms and Tax Calculation-2
17. Operation Workflow

Day1-15 Nov, 2012

This is my first day in the office and after the formality of filling form for opening bank account,
I attend two important sessions. One was about the training process, report and work culture and
in another session I came to know about e-commerce.
Session 1: Training Program Detail
In first session, I was told about the training process which includes assignments, daily EOD
reports, final training report, seminar, and viva and about the company and work culture of
Fashion and You. First session was given by Mr. Vibhore
Mr. Deepak
1. About the training:
The training will be of 10 days. In training period I have to be very attentive about what is told to
me. The deliverables covered in our training are


I have to submit two assignments. One is given to me today which is comparison based
assignment. I have two compare four e-retail companies which are as follows

Fashion and You


I have to submit two reports. One is EOD Report which includes the detail of the sessions given
till the end of the day. Second is the Final Training Report which is to be submitted at the last
day of the training.

I have to give two tests. One is Excel Test in which we have to prepare a excel sheet on MS
Excel. In the second test, at the end of training we have to give a written test what we are told.

I have to give a Final Training Presentation which will be in front of my Category Manager
and Mentor. This presentation is very important for me. I have to make it carefully as there will
cross sections on it. The PPT should be crisp and clear and it need no beautification.
I have to participate in Mid training Discussion. It will be basically a viva with Category
Manager and I have to take time for my viva on day 5.
2. Company Introduction:
Fashion and you is an event based e-commerce company. It provides mainly ladies product like
apparel, cosmetics etc. It has products for mens, kids and for wedding ceremonies too.
The company is registered as Goldsquare Sales Pvt. Ltd. And company website is It acquired Urbantouch in Aug 2012.
Departments of the Company:

Category Team: This team manages the relation with the supplier, it will manage the
category of inventory, sourcing of inventory and its price is also decided by this team.
Catalogue Team: It prepares catalogue for products, its photo shoot.
Operation Team: It consists of many teams. One is Inventory Team which maintains
inventories in the ware house. There is Procurement team which receives the products
from the suppliers. Operation Team has a PP Team which deals with the PP brands and
one is Logistic Team which manages the packaging, dispatch and tracking of products.
HR Team: It is responsible for the recruitments in the company and manages man
Finance Team: It deals with all the finance matter with the help of category team.
CS Team: CS team gives information and solves queries of the customers.
Marketing Team: This team decides the merchandise of the products. It decides the ads
for the sites like Google, face book etc.
Facility Team
Tech Team
PM Team

3. Work culture:
In this session, I was told to follow some ground rules which are necessary for my own growth in
the company, I was told the culture of company which is- Performance- driven and lastly about
some norms of working culture.

Ground Rules:

I was told four ground rules which includes

Sincerity I have to be formal about the assignment and if I make any mistake it should
not be repeated.
Ownership - It means once any assignment is allotted to me its my own responsibility to
take it seriously and need not to wait for anyone to follow me.
Transparency If I had made any mistake I should accept it and I should not blame other
for the same.
Openness to feedback It means I can give my feedback and ideas at any level of the

Session 2: E-Commerce
E-commerce is buying and selling of the products through electronic media. E-commerce can be
of three types according to category of the products, models of the products and interaction with
the vendors. If we have good interaction with the vendor for any particular product we can think
of its online business.
Services of e-commerce:
It is an emerging business which facilitates the customer to buys his product by ordering it online
from his home. It reduces the offline store transport charge and the main service of e-commerce
is it reduces the time of customer if he hasnt any urgency.

24*7 shopping availability

Need not to go to store to select his product.
No any pressure to buy the product.
Customer can save the money spent to go to store.


Transaction problem to customer

Insecurity in case of credit and debit cards
Late delivery
No feel and touch of the product.

Day 2 16 Nov 2012

I have four sessions on day 2 of my training. These sessions are as followsSession 3: Category culture and sourcing team
Sourcing Team:
It works on purchasing of products, maintaining the relation with the suppliers, business
development and coordination with other teams. It comes under the Category Team.
Deliverables of sourcing team:

It reduces the stock out condition for the brands available.

It tracks the inventory which is slow moving from the supplier.
This brings new products on portal.
It manages the damages of the products and informs the supplier.
Sourcing team coordinates with other departments also.

Sample day of Sourcing team:

Sourcing team checks the stock out product report sent by the operation team. According to the
report a PO is raised and is formalized. Check all the outright brands and send invoice to finance
team, then it check for all SOR and PP brands. Then it sends the return sheet and debit note to the
supplier and call supplier for follow up of existing brands. Sourcing team also makes BD calls
and does some Ad hoc works in the same day.
Work in FnY:
I will be the key member of category team as sourcing comes under the category team. I have to
mainly handle the procurement function and have to give our best and beyond anyone
Leave application:
I have to make a confirmation for the leave and have to inform previously. In case of emergency
I have to inform my manager.

Session 4: general skills

I was told some important commonly used skills which are as followsEmail management:
In email management we will use the filters to categories the emails and facilitates our self in
easily accessing each category mail.
Email Communication:
The emails sent to anyone should be formal, should not be descriptive, there should be no sms
language, should be crisp and clear, and there should be signature in the end of the email.
Difference between To, Cc and Bcc:
To: It is the main recipient of the mail and can see every mail under Cc but cannot see the bcc
Cc: It stands for carbon copy and can see all people in cc and to list but cannot see the bcc list.
Bcc: It stands for blind carbon copy and persons listed in bcc can see the To and Cc field
persons. Bcc will not be able to see any other bcc person.
Bookmarks Management:
For all the frequently used links use bookmark and add them in bookmark tab. We can also
manage them in folder and nested folders.
Verbal Communications:
When we interact and talk to the supplier we use formal language, we have not to commit any
thing which we are not sure about. Always try to discuss in clear terms and will avoid ambiguity.
Our language should be crisp and clear.
Task management:
We need to be multi tasking and use some note like diary, Google doc, excel, Gmail etc
We need to prioritize the work according to its importance, urgency, effort and impact. We will
consider all these parameter to decide what to do first.

Session 5: sourcing workflow:

In sourcing activities there comes two things-one is new brands and other is existing brands. This
session is specially to give an overview of sourcing the products. For sourcing we categories
products as

New brands
Existing brands

New brands:
First of all we will try to understand the market condition of that brand, identify the suppliers in
the market and contact them. Then we will try to negotiate them and after confirming everything
place the first order and then second order or subsequent orders.
Existing brands:
If we are going to source for a existing brand we will follow these steps

PO making
PO formalizing
Return 7 payments
Payment reconcilement(SOR)
Stock correction

Session 6: Inventory Models

Inventory models are models used to procure products from supplier and supply it to the
customers. There are four types of inventory models used by companies which are

Outright Purpose
Post Procurement(PP)
Drop Shipping

Outright Purpose Model:

In this model the inventory is procured from the supplier and maintained at the warehouse of the
retailer. The payment is made after the product is delivered or on credit, depends on the
negotiation with the supplier. This model is followed in traditional Kirana shop.

SOR Model:
This model is same as outright model as the product is procured in warehouse and orders placed
by customers are delivered by the retailer. This model is different from outright as the payment in
this model is made only for the products sold and remain goods are returned to the supplier.
PP Model:
In this model the product is procured at the time when order is placed. The runner is send to the
supplier when any order is placed. This is also known as real time procurement model. In this
retailer need not to invest money on procurement.
Drop Shipping Model:
In this model the details of the order is passed to the supplier and the supplier delivers the
product directly to the customer. So the products need not to be stored or procured at the
warehouse of retailer. The commission is received by the retailer.
There are two more terms used by the supplier which areConsignment Model:
It is same as the SOR Model. The only difference is that the inventory is purchased in SOR and
payment is made later and in consignment supplier inventory is kept in the warehouse and sold.
In SOR retailer pays the sales tax but in consignment supplier pays the sales tax.
Virtual Inventory model:
In virtual inventory model the product is not present with the retailer but is represented in
system. The PP and Drop shipping are mainly in this model.
When to choose which model:
Outright model when supplier is not ready for PP or SOR and inventory is costly.
SOR - If PP is difficult and supplier is not near by the retailer.
PP - Its preferable if the supplier is not far away from the retailer and inventory is of high risk.
Drop Shipping Retailer mostly does not prefer this model.

Day 3- 19 Nov, 2012

Sessions of the day:
There are two sessions today, one is category processes - 1 and other is re-ordering algo. In this
session we are told about the process followed by us in our category. In sourcing team, we will
raise PO, formalize it, receive it at our procurement, generate SKU, maintain label sheet, returns
to supplier, payments to supplier and stock correction. In re-ordering algo , we will check the
stock and prepare for the next PO. This algo will depend on some basic factors.
Session 7: Category process 1
Category process is divided in two parts according to the processes. The process is consists of

PO making and formalization Process



Internal SKU ID Generation

Label Sheet

Samples for cataloguing


Payments Outright

Payment SOR

Catalogue Filling

UT WebIssues

Stock Correction

Handshake with other departments





Out of these processes three is covered in this session which are PO making and
formalizing, form 38, and receiving.
One important thing is that we have to intend to learning rather to memorize it. We
should understand these processes as it may change with time.
PO making and formalizing:
Purchase Order is formal intend to buy the product. It is created depending on the sale
performance and re-ordering algo.
In PO making we first check the re-ordering list and select the relevant products according to the
brand, category and its enabled or not. Then make a re-ordering list and copy that relevant
product in it. We have to check the system for quantity available and orders in transit. We
generate the formula and mention comment for the change in product number and send it for the
approval to CM.
In formalization of PO, the naming convention used is
Category PO - <brand name> - <date>
The email is mailed to the following link as


CC: Category Mailing List

The email body of purchase order should be decided according to the type of PO either it is
raised first time or it is either a regular PO.
Email body of PO for new brand:
Please find attached the PO of <Brand>. This is a New Brand in << Category >> (mention the
name of respective category). Attached are the Vendor Details (either through VRF or in the mail
Current PO:
It contains the complete details of the present PO as it shows the total MRP, total units ordered,
total SKUs ordered and New SKUs.
Email body of PO for old brand:
For the old brand the PO mail body contains the purchase order, the current PO information is
same as new brand, sheets are checked for revert and the last PO data information is collected. It
includes the SKU ordered, no. of units, last PO date, fulfillment rate etc. The data according to
the MRP is also collected.
Approval of Data:

Firstly PO is approved by category manager than its send and the formalized PO is received in
same thread in the form of pdf.
Sending PO to supplier:

To: Supplier email id(s)

Cc: Category Mailing List


Subject of the PO will - PO - <Brand> - <Date>

The email body has no any specific format.
PO Tracker:
Before sending PO to supplier (in case of new brand) we have to perform these steps

Get the vendor database updated

Drop a mail to Bhupesh and cc to category mailing list

Mention all the required details needs to be updated


Supplier Name (Ensure that this is correct since this will be used for
validation later)

Expiry Rule, Exceptions, Specific Instructions

Inspection Period

Then we send PO to Supplier, and after sending PO we have to perform some tasks as

Fill PO tracker as soon as the PO is sent to the supplier

Send label sheet to the PT of the expected stock as soon as the PO is sent to

In case any changes needs to be done in PO tracker

Drop a mail to Bhupesh and cc to category mailing list

Mention the changes needs to be made to the tracker - Inspection period, expiry rule, exceptions
Update the relevant trackers

Form 38:
Form-38 (Or Road Permit Or ST-38) is a legal document which needs to be present with the
stock as per Government regulation (To enable Government to be aware of high value
transactions) while Stock crosses a state border or Stock being transported is worth equal to or
more than Rs. 25,000 according to the Invoice Value (tax included).

Request for Form-38

When we need to send the Form-38, we request to finance team for the same. In case of Reindeer

Send an email to

Subject Form-38 Request - <Brand Name>

Body should include

Name of the vendor
Billing address of the vendor

And if case of Gold Square Invoicing

Send an email to same mail thread of PO formalization after getting the PO


2. Finance team will directly send the form to the supplier

Return of Form-38:
Supplier should send back the Form-38 along with the stock or Ops Team sends them back to the
Finance Team after receiving it.
Points to Note:
Take special care of the Form-38 as FIR needs to be lodged at Police Station if it is lost and it is a
really painful task. Supplier should also be told about the importance of sending it with the stock.
After the form is received back, it should be handed over to Kapil in Finance Team.
Receiving process:
Ops Team conducts the receiving process at the warehouse but ultimately it is sourcing teams
responsibility that everything is checked properly as supplier will come back to you only.

Debit note:
A financial document to account for a component in invoice which is not paid for. Needed by
both parties to match the account books.
This always holds true
Debit Note = Invoice Stock accepted

Reasons of debit note:

Damages, Defects, Quantity mismatch, Additional goods sent, and Returns (e.g. SOR, Stockcorrection, damaged goods process, etc) are the reasons to place the debit note.

Session 8: Reordering Algo

Reordering is done in some specific cases like

To order SKUs listed on UT website

Estimation of amount to be sold in a stipulated period

To balance stock outs and Days of inventory outstanding

It is the most critical aspect of sourcing as it involves direct financial implications to business.
Reordering Algorithm is the formulae to ensure number of units for each design is ordered taking
in to account all important factors.
Factors to consider reordering algo:

Sufficiency of Sales Data

Pro Rated Sale


Stock in transit/ held/ pending order

Notify Me Requests


No. Of Days Live (Enabled + In-stock)

Ordering Factor

Lead Time

Best Sellers

SKUs to kill

Inventory Model*

Variables in reordering algorithm: data sufficiency

Sufficient : Live Days >= 10

Insufficient : 1 <= Live Days < 10

Highly Insufficient : Live Days <1

Variables in reordering algorithm: sales rate

Sale Rate = 50% of Prorated 7 days sale rate (P7) + 30% of Prorated 14 days sale rate (P14) +
20% of Prorated 30 days sale rate (P30)
Where - P7 represents latest trend, P14 represents medium trend, P30 represent more average-out
Variables in reordering algorithm: reordering factor
Reordering Factor =

If Days live < 10 (data insufficient so first make it sufficient)

RF = 10 days

If Days Live >= 10(data sufficient here so consider minimum inventory risk)

If SPL >= 500, RF = 20 days

If 250<=SPL<500, RF = 25 days

If SPL < 250, RF = 30 days

Reordering default formula:

Formula Reorder Qty = Sale Rate * Reordering Factor - Current Stock - restock exceptions - held
in failed order - Qty to come or in system
Manual checks:

Check Best-Sellers

Highlight and order separately

Add marketing quantities if any

Killing the SKUs

Good to kill the slow-moving products

Improves quality of selection

Reduces inventory risk in future

Do not order products to be killed

Brand confidence and lead time - Take brand-specific factors into consideration
This is the EOD and tomorrow we will cover the category process 2.

Day 4 20 Nov 2012

Today I attend two sessions which are Category process 2 and damaged goods process. The information
given in this session is given belowSession 9: Category processes 2
In category process 1, I learn about the PO making, PO formalizing, Form 38, and Receiving.
Today I was told about the topics like how to generate the SKU id, what the importance of SKU, label
sheet, returns is made to the supplier, and payments to the supplier, stock correction and how to interact
with other departments as well.
Internal SKU Id generation:
If the supplier has not unique id for each attributes like color, size etc than we need to create the SKU to
make each of them different from each other. There are some other cases in which we have to create the
SKU like if the two suppliers have the same id for two different products. We will generate this id even
when the SKU id is very complex or we dont have any supplier id.

Mapping is done to make each and every product of different brands, color, and size unique. There should
not be any clash between any SKU ids.

Label sheet:
It is generated to create uniqueness to each unit of products. It is used to match the supplier code and
SKU generated internally by us.
The label is pasted on product if product does not contain our SKU id.
We will generate label sheet if product code by supplier is not unique.
Catalogue is generated by the team for each unique SKU id. One unit of same SKU is sent to catalogue
team and updated by him, and then it returns the product to inventory. CT team send the sample request if
catalogue team need any sample to generate the catalogue of any product. This request is made prior to
receiving of the inventory. As the product is received in warehouse the inventory team send sample to CL
and inform for the same to CT if product returns to inventory.
Return sheet is generated based on three sources which are according to the receiving, SOR and damages.
The products reached at the inventory from supplier are received and factual and detailed receiving is
made. The products damaged are sent to supplier with the debit note and GRN is generated and send to
the finance team. The return sheet here generated is send to supplier.
In SOR return, the product remained after the SOR period is return to the supplier.
Outright payment In outright model when the product is received at inventory factual receiving is
done by PR. They send invoice and form 38 to the sourcing associate. After the detailed receiving they
generate the GRN and send it to the category team along with the original invoice. The payment is made
according to the GRN by the finance department.
The original invoice submitted to the finance has the following format. It contains the PO number, invoice
number, supplier number, date, CM name, and priority. The priority is decided according to product and is
of different types.
SOR Payment - The SOR payment is same as the outright payment for the initial steps and at the time of
reconciliation SOR form is filled and sends to finance team at

Catalogue filling:
It is a Google doc shared by the catalogue team to fill by category if any new SKU is added. The
information given in form will beCategory of the product and sub category
Company discount if given by company
Special discount if any or MRP if there is no discount
VAT rate
Composition of the product

UT Web Issues:
It is a request raised to the catalogue team regarding any change in product on website. It can be raised by
anyone who has the login id and password of web issues link.
To raising a web issue anyone having login id and password can login and click on tab ad hoc and then
add issue and a new tab will open where we can add issues and can write the type as image change, price
upload etc. anyone from the catalogue team can take the issues and solve it.
Stock correction:
Stock correction is the number of the product reduced from the inventory to reduce the risk for slow
moving goods. It totally depends on the negotiation with the customer.
The process followed to correct the stock involves the negotiation with the supplier. The stock to be return
to the supplier is decided by the stock correction algo sheet.

Departmental Handshakes:
We always Cc all the inter-departmental mail to category mailing list. The category team interact the
catalogue team, finance team, CS team and some teams of OPS team. The ops team consists of the
detailed receiving, inventory, fulfillment, logistics, and post-procurement.

Session 10: Damaged goods process

In damaged goods process, all the damaged products are considered that cannot be sold and get
no revenue. The whole process defines why it is necessary to clear the damaged goods. The
process is to know how to manage the damaged goods, decision and analysis for damaged goods.

Why to clear damaged goods:

If the goods will not be cleared they will pile up in the inventory which will reduce the inventory
space in the company. Sometimes they may expire and the supplier may refuse to take the
product and it may also happen that the return time of that product may lost.
Sources of damaged goods:
There are many sources which may generate some damaged goods. According to the data
sources are factual receiving of goods at the time of procurement, detailed receiving, in
inventory, by catalogue, in case when the product is not delivered and returns to warehouse i.e.
return to origin (ROL), and one more case when there is reverse logistics (RL).

Types of damages:
There are many types of damages which occur in inventory. Some of them are MRP change,
loose cap of products, scratch on the product, and loss of mfg. or expiry date on the product, in
handling, storage, leakage etc.
The decision made for the process of damaged goods is first we prefer to send it back to the
supplier, if not possible to send back the CT team analyze the good and decide whether it can be
send back to the system for sale or not. Than we go liquidation, marketing of product and in last
case if the product is profitable to left with customer we left it and it is called write off.
It is about how to execute the damaged product according to the damage type. Every decision
made for the damaged goods has some execution process. The execution of return to system is
done according to decision made by sourcing associate that the product can be sold to customer
or not and what is the condition of goods. In liquidation process, the damaged goods are sold by
giving some discount or margin on it.
Analysis is to inspect the data for the damaged products available and find whether there is any
common trend of damage in product or it randomly damages. This damaged data is collected
from two sources that are
Complains made by the customers in CS team
Damages from inventory

Thus according to the data available and our analysis if it is found that the frequently damaged
goods can be cured, we cure them and sold them.

Day 5 21 Nov, 2012

Sessions of the day:
There were two sessions today. One was for Post procurement process and other for the Excel
skills. PP process session was to give information about the workflow of the PP team and in
Excel skills session we are told about the function and all other skills need to operate the excel
like general formulae, filtering /sorting, formatting, pivot table, and Vlookup etc.
I had a hands-on today in which I was shown the PO, formalized PO, invoice handover sheet
which is filled and submitted when invoice is received to CT originally with GRN.

Learning of the day:

Session 11: PP process-1
PP process is different from the SOR/outright model. In PP model the product is stored at the
supplier warehouse whereas in outright and SOR the product is stored at the retailer end.
Why PP is different from the SOR / Outright:
In SOR or outright the product is stored at warehouse of the retailer which facilitates to dispatch
the goods according to him but in PP we send a runner to collect the goods from supplier. The
order fulfillment of the customer is fast and convenient in SOR/outright than in PP as there may
be stock out at supplier end or he may have sold it to some other company. In PP the invoice is
given by the supplier every time or collectively in 15 days or monthly.
Shipping out an SKU on PP:
In BD process once the new product is decided to launch, the information is passed to the PP
team through the category PP vendor database. The PP makes a feasibility test and if PP agrees
for the shipping, the catalogue process starts and catalogue team starts working on it. Finally the
product is launched on website.
Now when the customer places the order the flag shows its a PP SKU. PP team generates a
procurement request (PR). The runner with the PR goes to the supplier takes the goods, check the
goods roughly, give a copy of PR to the supplier and comes to the warehouse with the Invoice.

Products are matched with the PR sheet by the PP team and handover to the fulfillment.
Fulfillment checked quality of product and send to logistic to dispatch.

Handling of samples for PP brands:

The very first step is that a Sample Pickup Request sheet comes from the CT with all necessary
details like no. of samples to be picked, brand of the samples, name & address of the vendor
from where samples has to be picked, etc. This request is to be made two days prior to the
pickup date before 6P.M.
The store receives the samples and informs the CT. CT team sends mail to catalogue and after the
cataloguing is done the sample is sent to supplier and informed to CT by store.
PP new brand launch:
The category team updates the category PP vendor database and PP starts the feasibility test.
After test is completed the CL launches the product on back end and the CT upload the SKU
supplier mapping to IT console. Now PP checks if the SKU supplier mapping is uploaded in IT
console and told the CL to launch the product on front end.
Weekly data shared by PP:
PP team sends the scorecard of supplier to the team, damaged goods detail and details of the
inventory remained. PP tells about the types of damage in the product either it is return to origin
or reverse logistic.
Interaction of PP:
PP team interacts with the CT and customer support team. The order raised by customer in a day
is handled by PP and fulfillment sheet is filled by the PP in fulfillment outbound sheet.
Raising PR Request:
As the order is placed the PP team generates the PR sheet according to the vendor or brands.
Each PR number and Id is different from the other.

Session 12: Excel skills

In excel skills we are informed about the importance of the Excel. The Excel uses some basic
formula which makes the calculation easier. Some of the formulas are sum, if sum, max, min,

average, left, right etc. we are informed about the sorting of the cells and how to filter them,
formatting of the excel sheet, and about the Vlookup.

Excel basics:
In basics of the Excel we are told about the use of the handle and the dollar. Handle is used to
implement the formula to each cell of that particular column and dollar makes the content of any
cells constant.
Filtering and sorting:
The "Filter" function allows us to filter through column and row data to locate specific
spreadsheet information. Filtering allows the user to customize how the spreadsheet data is
viewed on screen.
Sorting allows us to sort data based on multiple cells, and in ascending or descending order.

Format painter:
Format Painter is used to quickly copy formatting from one part of a sheet to another, or to
another sheet in the same workbook.
To have a good command on excel we need to practice more and more because practice makes a
man perfect.

Day 6 22 Nov 2012

Session of the day:
Today, the session was about the PP process. There was a PP session yesterday also but was not
completed. This session was about the format of the PR sheet, raising the PR request.
There was a hands - on today in which I saw the process followed in making the PO, how it gets
Learning of the day:
Session 13: PP Process-2
Raising PR request:

When the session starts, I saw the format of the PR sheet. As told previously, PR sheet is used to
mention the SKUs to procure from the supplier. In PR sheet the mentioned data are SKU id,
request id, vendor id, order number, number of quantity, and the MRP of the product. PR is send
to the supplier with the runner. The supplier authorizes the PR sheet by stamp and signature. One
copy is left with him and another is given to PP team when the product is received in warehouse.
Digitizing data:
Runner come back with the PR sheet, goods and may be with the invoice sometimes. Then the
PP team makes the factual and detailed receiving of product and if the product is damaged they
mention in the PR sheet. The PP team mentions the status of the SKU in the PP console as

Product is Received
Product is Carryover as not received
Received damaged closed
Received damaged carryover
Not received closed

Then the PR is closed and digitized data is generated and mailed.

CT tasks for PP:
The CT team fills the vendor database form and introduces both the PP and supplier with each
other. The team is also responsible for the SKU id mapping. CT also handles the sampling
process including its receiving and sending back to the supplier. CT also takes care of the
cataloguing of the product and its margin and price changes and its enabling and disabling. CT
also request for the payment reconciliation with the finance.
Thus our session was over today. We also know about the cases of PR sheet filling, its format,
and who is responsible to fill it.
Excel skills:
Today I practice for some excel functions. I know how to use the Vlookup function. In this
function we can fill any column of excel sheet with the data in another excel sheet if any column
is same in both the sheet. I have used the function handle.
Mid-term viva:
There was mid-term viva today in the last of the day. After the viva my manager told me the area
to be improved. He gives me feedback which I really need. I came to know that what I have
learned and what I still need to improve.

Day 7 23 Nov, 2012

Sessions of the day:
There were two sessions today. First session was about calculating the tax to be paid to the
government and how to invoice the customer for any product is also to be calculated.
In the second session, we come to know about the business development. We learn about the
processes followed to perform the process.
Learning of the day:
Session 14: Finance Terms and Tax Calculations-1
In this session, I learn about the basic concepts of calculation of taxes. These are

Removal of Tax component from selling price

Markup & Markdown
Value Added Tax(VAT)
Central Sales Tax(CST)

1. Removal of Tax component:

Tax is always included in selling price. If the MRP of any product is say 100 Rs. Its selling price
is 80 Rs. So the customer will pay 80 and the tax is also included in the 80 Rs. To know the
amount without tax we have to remove the tax from the selling price. Suppose the tax rate is 10
percent then
MRP = 100
Tax rate = 10%
Selling price = 80
If the unit price is x, then x is given as
x + 10% of x = 80
So, x = 80/1.10
And tax = 80/1.10 *0.10
This is how tax and unit price is calculated. Tax is always calculated on sales not on MRP and
selling price and MRP mat not same.
2. Markup (MU) and Markdown (MD):

Margin is basically the difference between the MRP and buying price of the retailer. Margin is
always on MRP, not on selling price.
MRP is of two types. One is fixed MRP and other is flexible MRP.
Fixed MRP is printed on the product always whereas flexible MRP is the transfer price for the
Mark up margin is used with the unit price i.e. if supplier is saying that there is a margin of 20%
in markup on any product then it means that he will give 20% on unit price of product, whereas
in markdown it will directly be given on MRP.
Now suppose MRP of any product and margin percent is given then its unit price will be

MRP = 100
Margin = 20%
Then unit price (UP) in MU
If UP is x then
x + 20% of x = 100
x =100/1.20 = 83.33
Whereas in MD
UP = 100 20% of 100 = 80
So, we always prefer MD in margin as we have seen in above example.
Relation between MU and MD:
If MD is given then we can calculate MU
If MD = 20%
Then, MU =?
If MRP = 100 then in MD margin will be 20
So for MU margin is 20 i.e. UP are 80 then MU% is given as
80 + MU % of 80 = 100
MU/100 * 80 = 20

MU = 20*100/80 = 25%
So, MU% will always be more than MD% for the same margin.
Unit price (UP), Landing Price (LP) and Transfer Price (TP) are basically same and these are
the amount we pay to the supplier.
UP doesnt contain tax, LP contains tax whereas TP can may contain tax may not.
MRP vs. SP:
MRP = 200
SP = 180
Tax rate = 5%
Margin MD = 40%
Then LP & tax =?
LP = 200 40% of 200 = 120
Tax = 180/1.05*0.05 =8.57%
3. Value Added Tax (VAT):
VAT it is given to the state government. It is handled always with Input Tax Credit(ITC).
CST It is given to the central government for any transaction between the states.
VAT rate = CST Rate = Tax rate for a particular state. VAT and CST Rate remains same, only
name and Govt. which receives it changes.
CST and C form will be covered in the next session of tax calculation session.

Session 15: Business Development

BD basically means development and implementing growth opportunities to the company. It is
very helpful to increase the revenue of the business. BD helps increase new brands and more
option to the customer. More option more customer will interact with the company.
BD processes:
There are five processes followed in the BD which are as follows

Identifying focus areas

Searching for suppliers in such areas
Placing business proposal to identified suppliers
Negotiating on terms of trade
Closing discussions with the supplier

1. Indentifying focus area:

In this process, we identify the area and specification of the product to be added in the business.
There are certain parameters which are needed to decide the product which we need to buy.
These parameters are
1. What is the price range for product to be bought?
2. The quantity we need will be provided by the supplier or not. It means the supplier should be
able to provide ample goods.
3. When BD is call, the specialty of the product is decided. Its features are mentioned and it
should we provided by the supplier.
4. We also try to know whether the supplier be able to deliver the product in time or not.
2. Searching supplier in identified area:
After describing the specification of the product to buy, we search the supplier fulfilling all these
demands. If the supplier is able to provide all the demand then we will contact either through call
or the internet. The sources are INDIAMART, Alibaba, and exportersindia, face book, Wecare,
twitter etc. we can initiate first by call then we send BD introduction mail to the suppliers.
After contacting supplier we gather required information and check whether he comes in focus
area are not.

3. Placing business proposal:

Once we identify the supplier, we make a business proposal that we are looking business with
you and we confirm something like his lead time and about the brand tag of the product. We also
clear the pricing model of the product with the supplier either it will be MRP based or based on
transfer price. We also discuss the inventory model of business and according to our product
focus area. If he is agree we move forward toward business.

4. Negotiating on terms of trade:

According to the product, their prices, and risk of inventory, we decide the inventory model. We
negotiate with the supplier if he is not agreeing with the inventory. We define each inventory in
front of supplier and let them understand each model. We also discuss the payment mode either it
will be advance payment or 30 days PDC. We also clear the inspection period.
5. Close discussion with the supplier:
After everything is clear between us and the supplier, we send the MOU (memorandum of
understanding) to the supplier mentioning every term of agreement. Ask the supplier to send the
design catalogue and price list. The supplier will also send the image of the product of high
Some supplier may ask for hardcopy of the MOU then we have to send two hardcopies to him
signed by us and say him to return one signed by him. Now we are in condition to place the
BD information management:
Information management is very critical for doing business development in an organized way. As
it is Impossible to remember so much information from the entire supplier and there term of
negotiation. Data of each supplier should be preserved for future use so that we may contact
them when we need (when focus area might change) so we should store data in such a way that it
is easily accessible and understandable.
Google Docs is very apt for this purpose because it allows real time updating and sharing of data
to any one easily. The methods used to store information are as follows 1. Supplier database management:
Master BD file is updated when any supplier is contacted and any communication made between
we and supplier is maintained in this file. It includes the various stages of discussion with the
supplier like not started, hung, work in progress (WIP), closed, and rejected. It is important as
anyone can see the process easily and know the status.
2. Master file with supplier information:
BD calling update and supplier information is maintained every time we call the supplier and
mention the summary of the supplier. It is a Google docs file.

3. New brand checklist:

When the deal is closed and order is placed we fill this form which helps us know the tasks to be
performed from supplier end and from our end. It is an excel sheet. This sheet is category
specific and differs from category to category.
4. Brand tracker:
It is filled for all the brands and gives a track of orders placed of every brand. It contains
information about date of order, expected date of delivery, no. of SKUs ordered, and no. of units
ordered. This helps us track the information when and how much goods will reach the
Today I also practice some function of the excel and learn how to use them.

Day 8 26 Nov, 2012

Sessions of the day:
Today I have attended two sessions. One is tax calculation in which I have learned the tax
condition of CST and C - form. C - Form is filled when the transaction is between the states i.e.
inter state. Other session is for the Operation workflow.
I have given Excel test today and there was a hands - on PP process.
Learning of the day:
Session 16: Tax calculation and finance terms-2
This session was started yesterday. Among the five concepts of the tax calculation three were
covered and today I know about the CST and C-form.
Central Sales Tax (CST):
CST is given to the central government. It is the extra tax which is given in the system as there is
no ITC. ITC stands for Input Tax Credit. It is the credit given by the seller to the supplier in intra
state transactions.
As we have seen that in CST extra tax is paid which effects the interstate transactions or
business. To reduce this discouragement central government gives a discount and only 2% tax is
paid by supplier.
C-Form is a proof for the government that there was an inter-state transaction so the supplier has
paid only 2% tax. C-form is issued by buyer to the supplier every quarter. The benefit of the

reduction of the tax rate should go to the buyer and not to the supplier as it is the buyer who is
paying double tax so the rule is made to reduce the extra tax.
C-form is never used for that product whose tax rate is less than 2%.

Session17: Operation workflow

Operation process is very important for any e-commerce company. It manages all the goods in
the warehouse. Every physical good is handled properly by this team. The work flow of the team
is as follows
E-commerce Operation Center (EOC):
EOC is the place with large space to store all the products, manage them so that it can be easily
retrieved. For its security purpose there is an entry and exit process which is followed by
everyone to make inventory safe. For every transaction of product gate pass is used. Food facility
is available at inventory for everyone having a coupon allotted by the concern person.
Operations Team:
There are several teams responsible for the whole process of operation. These teams are
1. Procurement team:
It is responsible for the detailed receiving of products and check for defects and damages before
accepting the goods to the system. This team is mainly responsible for the SOR/Outright model.
2. Inventory team:
This teams responsibility is to maintain the products in the inventory in arranged manner so that
it can be retrieved easily. It also looks after the store, prevents it from any damages.

3. Fulfillment team:
This team is made to look after the orders placed by the customers. It receives the goods from
supplier and goes for detail receiving. This team is responsible for the packaging of the goods in
proper way. Packaging team is part of this team basically.
4. PP team:
PP team handles the PP process. It receives order generates the PR sheet and all other post
procurement processes. It sends the runner to the supplier to collect the goods from there and
after factual receiving handover to the fulfillment team.

5. Logistics team:
It consists of the two teams. One is dispatch team and other is tracking team.
Dispatch team sends the product to the customer through the courier services. It also decides the
courier team to be used to send the good according to the performance of the team.
These above teams constitute our operation process. Each of these are very important as we can
only imagines the thing sitting in the office but they really face the reality of the day-to-day life.
Excel test:
I have learned some excel functions today in the excel test. I applied all these functions and
experience the practical and theoretical difference between them.

Day 9 27 Nov 2012

Today I have visited the EOC of the company. Its located in Phase III, gurgaon. Its a huge
warehouse where the products ordered and damaged goods are kept in arranged way. By
arranged way I mean to say that whole inventory is divided in small cells called bins. There is
bin no. allotted to every cell so that inventory can be fetched easily.
Just after reaching the EOC we start contacting and learn the exact process followed by every
team there. These were as follows-

Procurement team:
This team receives the goods and makes a factual receiving of them. In this process it checks the
40% of goods and if its damaged it sends the damaged goods. Then it makes detailed receiving
of goods and checks the damaged good, returns it to supplier with the debit note. After this it
generates GRN.
Inventory team:
This team receives all the goods on SOR or outright and store it in inventory properly. To
manage the goods and make them easy to find anytime there are cells called Bins. Bins have a
unique Id or number. So the retrieval is very easy.

PP team:
This is responsible for all the products on PP. In the morning the orders raised for PP are
collected by the PP team and PR sheet is generated. Runner takes the PR sheet and gets the
goods to inventory. Receiving is done by PP and detailed receiving is done by the fulfillment
team. If not damaged the product is send to logistic after the packaging is done. Logistic dispatch
it to customer and fill the tracker of that product.
This team is responsible for all the detailed receiving of the products received in the inventory. I
have seen the fulfillment team packs the product to be sent to the customer. They use cartons to
pack them using thermocol or soft spongy thing to avoid damage. They also pack the damages to
be sent to the supplier.
Logistics team:
The packed goods ready to be delivered are send to the logistic team. It takes care of the courier
service to be used to deliver the goods to supplier. It dispatches the product and fills tracker for
Today I have seen the different processes to be done from starting of the order placed to the
customer delivery.
I have seen the inventory where a lot of goods where managed by some persons. They work very
smartly to make the work easy to operate.