Professional Documents
Culture Documents
Submitted to MZ Mustafa
5/18/2012
Submitted by Mufarrah Malik,
Mohammad Sohail, Mohammad Wali
and Umair Ashrafi
VALUE CHAIN ANALYSIS OF IMTIAZ STORE
Inbound Logistics
o Inspect stock outs
o Order placement
o Receive delivery from suppliers
o Storage at warehouse(s)
Operations
o Goods handling
o Ensure the products received are unbroken and/or undamaged
o Labeling/price tagging
Outbound Logistics
o Tagged products
o Organized shelf placement
Marketing and Sales
o Advertisements with an aim of promoting products and attracting potential customers
o Distribution of pamphlets
o Offer discounts
Service
o Provide trolleys and buckets to customers
o Provide directions
o Packaging
o Product rechecking
o Set exchanging period
Firm Infrastructure
o Warehouse(s) for operations at basement
o Ground floor having payment counters
o Wide area for products display at three floors which includes ground, first and second
o Fully air-conditioned
Technological Development
o Security/surveillance cameras
o Secured entrance
o Credit card machines
o Bar code readers
Procurement
o Purchasing new stock
o Purchasing barcode readers, printed shopping bags, credit card machines
IMTIAZ STORE IS ONE OF KARACHIS LEADING RETAILERS. IMTIAZ IS RECIVING VARIOUS
COMPLAINTS FROM CUSTOMERS MOST CRITICAL PROBLEMS FROM CUSTOMER
PERSPECTIVE ARE AS FOLLOWS:
Sales data
Manually
Remaining inventory Order (Next day)
(inventory quantity placement Goods
sold quantity) received
SOLUTION:
Automating inventory control system is the best solution that can overcome stock-outs because it
updates all the transaction related information, manage suppliers relationship and helps to control
business processes. It will reduce cost and work efficiently and effectively. A quantity limit is fixed on
which the SCM that is the inventory control system inform suppliers to about the requirement of the
stock and in this way the issue of stock outs can be resolved.
REVISED MODEL:
INFORMATION TECHNOLOGY:
Our solution will affect IT because now new client machines will be required through which
establishment of inventory databases and timely updating of data warehouse will occur. This will
help in controlling the inventory better and will help in overcoming stock out.
PEOPLE:
Customers will be satisfied and this solution will fulfill their need. Employees will need a training session
to work efficiently with a SCM to get the best out of it reduced cost as much as possible
INFORMATION:
There is a direct impact of the solution to the Information at imtiaz because the implementation of this
solution will result in organized information and reduces manual work because of the automation of
SCM, which will record all the information including the quantity of sold product, and immediately
updates the inventory that are left.
Measurement of performance will be carried out by customer feedback that can be through survey, one
on one interview or measurement of complains.
ASSUMPTION:
To determine the remaining inventory, Imtiaz work manually at the end of every day which results in the
unavailability of highly demand products during the day because they dont know how much the
product is left on shelves.
LIMITATIONS: This solution can reduce complaints from customers and satisfy them but it cannot alert
the workers about the delivery for re-stocking shelves.
Our value chain does not contain any kind of CRM software that is why they lack the ability to identify
individual customers. In this way, they are unable to forecast the variety that each customer desires.
PROBLEM AREA
SOLUTIONS:
The best possible solution is to monitor customers demand then add those products that are highly
desired by them. It is the most cost effective solution. The highly desired product will be ordered by the
store and after receiving the stock, the customers will find the desired product.
Information
INFORMATION TECHNOLOGY:
New servers and databases to record customer information will be required. New client machines will
also be required if the current ones present prove not to be sufficient.
PEOPLE:
Employees will have to attain and organize the information efficiently through which business
intelligence can be derived.
INFORMATION:
A new customer information database will provide a proper analysis of customers demands in an
organized manner. In this way, the information will become useful and complaints will reduce.
ASSUMPTIONS:
Lack of variety is due to the reason that it has no method for identifying customers and their wants,
which results in limited information about the customers and limited suppliers of the products.
LIMITATION:
This solution will reduce dissatisfaction level among customers FOR A SHORT SPAN OF TIME. This will
not work for long term.
OPPORTUNITIES OF IMPROVEMENT:
Installment of CRM will improve the solution, which will help them better in addressing their customer
needs and wants.
PROBLEM NUMBER 3: Search for desired isle and product or difficulties in navigating the store.
Finally finds the desired Ask people all Ask workers Ask people
isle and product around about the isle
SOLUTIONS:
Problem area
1. Hire sales people for guiding customers
2. Place proper navigational charts on each floor and list of products on each isle that are available
in it.
3. Introduce e-map of the store through various LCDs.
The best possible solution to overcome the navigational difficulties is the placement of proper
navigational chart or signage on each floor and a list of products on each isle that are available in it. This
will help customers not only in finding the desired isle and product but also in reducing frustration and
dissatisfaction among customers.
REVISED MODEL:
Goes to the
floor for
purchasing
New Comes in and Fetches trolley or Search for
desired
customer See map at the bucket products desired isle
entrance and product
INFORMATION TECHNOLOGY:
Navigational charts that clearly describe the placement of different product types and product lists will
be generated through IT by using IT tools. There will not be as such impact on IT from this solution.
PEOPLE:
Employees will be satisfied, as frustrated customers, finding their desired products or isle will not
disturb them hence, they can work with peace, their satisfaction level will increase and customers will
find the desired isle and product quickly without wondering or asking people.
INFORMATION:
Organized navigational charts and products list will be available for customers help. Hence, the current
information at imtiaz will increase and new customers will be able to get the desired product by seeing
the proper navigational charts.
MEASURE PERFORMANCE:
Customer feedback will be the source of measuring performance of the developed solution. It can be
through one on one interview with customers.
ASSUMPTION:
There are no navigational charts in the store except the map at the entrance.
LIMITATIONS: This solution will work in all circumstances but updating it according to the changes
occurring in isle is essential.
OPPORTUNITIES OF IMPROVEMENT:
Updating navigational charts is the opportunity of improvement through which customer will get to
know about the sudden changes done by imtiaz store.
PROBLEM NUMBER 4: Long waiting lines
Problem area
Exit
SOLUTIONS:
Best possible solution is to make checkout counters (at least 3) on each floor through which customers
will be able to purchase the product right away and leave. This will not only help those who want to
purchase few items but also help those who have to wait a lot at the checkout counter because of their
months grocery purchases identification by the barcode reader one by one.
REVISED MODEL:
INFORMATION TECHNOLOGY:
Information technology at imtiaz will increase because more client machines at new cash counters with
new barcode readers will be required. This will enhance the checkout functioning and less rush on
ground floor will occur.
PEOPLE:
Training of employees for new checkout counters will b needed as untrained workers at cash counters
can prove to be harmful for the business because of their inefficient work. They can slow down the
business checkout function despite of the increase in the number of the counters. To prevent it, proper
training to the workers of checkout counters is essential.
INFORMATION:
The records of transactions will increase by the cash counters, as every counter might have a separate
information database.
MEASURE PERFORMANCE:
Measurement of the performance of the developed solution can be done by monitoring the waiting
lines at the cash counters.
ASSUMPTIONS:
The physical location of Imtiaz does not allow it to expand the checkout counters further on ground
floor. The maximum limit is to expand the checkout counters in ten.
LIMITATIONS:
Further expansion in physical location is not possible. The solution will work efficiently in handling many
customers.
OPPORTUNITIES OF IMPROVEMENT:
Improvement can occur by expanding the building and constructing another floor at the top.
PROBLEM NUMBER 5: Search for parking spot and transportation of heavy purchases to vehicles.
Asks security
guard to take Unloading Check out Purchases of Reaches store
care of the area months grocery and Walks in
trolley
Brings car Unload the trolley
back and goes
Problem area
SOLUTIONS:
Valet parking is the best possible solution to reduce the dissatisfaction level of customers, as it will help
customer to enter the store generously.
REVISED MODEL:
Key handover
Car parked Brings car back and customer
goes
IMPACT OF SOLUTION TO INFORMATION TECHNOLOGY, PEOPLE AND IT:
INFORMATION TECHNOLOGY:
Installation of new client machines and up to date databases to record the valet drivers system
PEOPLE:
Training for workers at imtiaz for exchanging information efficiently and in handling valet parking to
reduce the frustration level of customers will affect people of imtiaz. Through it, customers will become
more loyal.
INFORMATION:
This solution will affect the information exchange as it will be quicker and according to which timely
action will happen.
MEASURE PERFORMANCE:
Customer feedback is the source for measuring the performance of the solution. It can be through
survey or one on one interview.
ASSUMPTION:
Their location is such that they do not have an organized parking spot.
OPPORTUNITIES OF IMPROVEMENT:
Efficient functioning of workers will improve the devalued solution and reduces dissatisfaction among
customers.
PROBLEM NUMBER 6: Incorrect price tagging
Dissatisfaction
Shelf price
1. Increase number of workers and notify them instantly about the price change
2. Install a system with small LCDs on each shelf, which updates prices instantly.
Best possible solution is to increase the number of workers and install an SMS server to notify them
instantly on their cell phones about the price update so that the workers would not only update the
shelves price tag but also tag the products individually.
REVISED MODEL:
Shelf price
Workers
pasted prices Prices Workers update the
on shelves and updated shelves price tags and
products starts tagging products
individually indiviually
SMS server
IMPACT OF SOLUTION TO INFORMATION TECHNOLOGY, PEOPLE AND IT:
INFORMATION TECHNOLOGY:
PEOPLE:
People will get an affect because it will save their time, as they will get the updates through SMS server
so it will be easy for them to receive the update and right away start their work.
INFORMATION:
Instant sharing of organized information through SMS server will affect the current information at
imtiaz.
MEASURE PERFORMANCE:
Performance can be measured through monitoring customers complains or analyzing their feedback.
ASSUMPTIONS:
Products are not price tagged individually and shelves often contain wrong price tags.
LIMITATIONS:
Improvement by automating the updates to workers related to recent price of the products through
SMS server.
MINOR CUSTOMER PROBLEMS:
PROBLEM NUMBER 1: Lack of walking Space, Customer has problem in maneuvering their trolleys,
which results in frustration among customers.
CORRESPONDING BUSINESS PROBLEM: Lack of space between shelves which results in congested
area.
Unsatisfied
Problem area customer
SOLUTIONS:
1. Remove a complete shelf and adjust others to increase the space among other shelves.
2. Introduce less wide trolleys compared to trolleys that are currently in use.
3. Merge shelves and eliminate the unused space between the shelves.
Solution that fits best is to introduce trolleys that are less wide to reduce the space that trolleys block
this solution will make less hard for customers to maneuver trolley.
REVISED MODEL:
PEOPLE: Less wider trolleys makes easier for the customer to move with and it also takes less space
which do not disturb others i.e. other customers and workers who are refilling the shelves.
INFORMATION: No affect occurs on information at imtiaz.
ASSUMPTION:
LIMITATIONS:
PROBLEM NUMBER 2: Non-Availability of elevators for customers that result in difficulty for aged and
people with trolleys.
Expanding the capacity of the elevators is the solution that fits best because it will reduce waiting lines
and more people will use it at the same time. This will reduce their level of dissatisfaction.
More capacity
REVISED MODEL:
in elevators
INFORMATION TECHNOLOGY: Expanding the capacity of the elevator will not affect IT.
PEOPLE: Customer lines will reduce, as more customers will be able to use the elevator at the same
time. Workers will also use the elevators for taking the stock to the desired floor for restocking purpose.
MEASURE PERFORMANCE: Performance of the developed solution will be measured by monitoring the
waiting lines at elevators
ASSUMPTIONS: The store does not have enough space to increase the number of elevators.
LIMITATIONS: the limitation of the solution is cost and efficiency of the elevators
PROBLEM NUMBER 3: Products that are available on store are either stale or close to expiry i.e. product
quality is not satisfactory
Stock at its Wrongly forecasted Order for new New stock Storage
end customer demand stock placed in bulk received in bulk of over
stock for
Placement on a long
shelf time
INFORMATION TECHNOLOGY: Forecaster will drive meaning from information through IT tools.
PEOPLE: As the solution is only increasing an employee (i.e. demand forecaster) that will not affect
others because the employee is a demand forecaster, its work is to forecast demand and place order
accordingly. Other workers and employees have nothing to do with it.
INFORMATION: Information will be organized that will help to drive statistic information.
MEASURE PERFORMANCE: Performance of the developed solution can be measured by checking the
quality of the products.
CORRESPONDING BUSINESS PROBLEM: limited suppliers of branded products and more suppliers of
duplicate products or branded products cost high, which reduces the commission on them.
SOLUTION:
Elaborated
difference between
product qualities
INFORMATION TECHNOLOGY: Update SCM by using IT tools for suppliers of branded, stereotype
products, and proper track of their sales.
PEOPLE: Workers will refill the shelves as per the difference between the sections of stereotyped and
branded products.
INFORMATION: Section that elaborates the difference between their qualities will help customer to
take better decisions.
MEASURE PERFORMANCE: Performance can be measured by taking one on one interview from
customers regarding this differentiation strategy.
ASUMPTIONS: Customers are unable to figure the difference between the branded and stereotyped
products.
SOLUTIONS:
Issue of loyal cards to people who purchases in bulk is the best possible solution. Giving them some
discount on loyal cards will be good for making good and long time relationship with bulk customers.
Customer
goes
INFORMATION TECHNOLOGY: A proper card system by using IT tools that record the customer
transaction on their assigned cards.
PEOPLE: debrief the employees about cards on checkout counters about how to handle the loyalty
cards owner.
INFORMATION: A complete new database that contains individual customer transaction record upon
cards will be maintained.
ASSUMPTIONS: The customers that buy products in bulk are not satisfied but the location is feasible for
them to buy.
PROBLEM NUMBER 6: Stocking of shelves in front of customers while they are shopping
NO SOLUTION
Untrained
workers
SOLUTIONS:
Training of the workers who are at the cash counter is the best possible solution through which the
workers will be able to use the software effectively and efficiently input the quantity etc to generate
accurate invoices.
Trained
Workers Training workers
INFORMATION TECHNOLOGY: No such impact on Information technology, Due to this solution efficient
use of IT will occur.
PEOPLE: Training will affect people and train them to use IT better and eliminate mistakes
TRANSACTION DATABASE:
Primary key foreign key foreign key foreign key foreign key foreign key
CUSTOMER DATABASE:
EMPLOYEE DATABASE:
COUNTER DATABASE:
Purchased item type, Customer ID, Employee ID, Payment Type and Counter Number appears in
Transaction database as foreign keys.