“Standard operating Procedure” for

Handloom & Handicraft Haat, Patna

Product Category- UMSAS will market all the handloom & handicrafts of Bihar. At present UMSAS will
focus on the high impact handloom products which has a high scale up potential and have the potential to
grow further in value and volume. The major focus crafts are- Home décor, handloom saree, handloom
textiles, cotton cloths, Madhubani painting, Stone craft, Wood craft, Manjusha painting, Tikuli painting,
Bamboo craft, Terracotta, Jute craft, Sikki and Appliqué work.

All the artisans of Bihar can market their handicraft and hand loom products through UMSAS. UMSAS
may also extend the scope of procurement from outside of Bihar in the subsequent years based on the
demand.

 Budget Approval-
o For Stock Procurement – initially vendors are eligible to supply maximum Rs. 2 lakhs of
product. For that they will get paid 25% of the total amount at the time of procurement.
Rest amount will be credited as per the sales of the goods.
o For Store maintenance & Operation- UMSAS will be responsible for the maintenance of
store and operations like electricity bill, stationeries, cleanliness, bill books etc. for this a
monthly budget shall be approved.
Pricing & quality of Identified Products The marketing team will come out with a range of marketable
products. The product selection criteria may be based on currently produced and marketed products with
a minimum volume.

The products to be selected shall be meeting the following criteria:

I. All the products to be selected must be on regular sale in the market having utility value. High
quality showpieces and decorative items can also be considered but to a limited volume only.
II. Products having seasonal demand/ occasion-based market shall be purchased in small quantity
based on market assessment and selling capacity.
III. Price shall be within the range of Rs 100 to Rs 20000/-. However, products of higher price range
can also be marketed to the limited extent depending on the product and target market segments.
IV. The products shall be easy to handle (not be brittle or bulky) and shall be easy for packaging and
transportation etc.
 V. The products must be acceptable at the present market i.e. must be produced and marketed with a
volume on regular basis.

Constitution of Quality Control and Pricing Committee (QCPC): The QCPC shall be constituted by
the key team members of the UMSAS. The QCPC shall come out with list of products and product ranges
for every season/quarter (minimum of 4 list with description of product and procurement price/year)
based on which the store keeper will receive the material from the enlisted artisans. It can also list out the
products on monthly basis based on the situations. The QCPC will also decide the discount on the selling
price of the products-based inventory, demand, quality etc and it can be fixed on monthly basis.

Composition of Quality Control and Pricing Committee

S.
N Person Designation Role
1 Ashok Kumar IEO-Marketing, UMSAS Procurement Head
2 Anil kumar IEO, UMSAS Member
3 Chandra Bhusan Singh Skilled Artisan, UMSAS Member

The pricing of the products will be at two levels-

 Level 1 : Artisans/ vendor level and

 Level 2 : UMSAS level.

The procurement price of UMSAS shall be finalized based on the cost of raw material, cost of labour,
overhead charges of the Artisans/ vendor, Transportation cost (up to the UMSAS, Patna). It is to be
noted that price may vary as per the market channel and focus customer segment. The marketing
team will have the flexibility to decide the price above the base price fixed by the committee.

The selling price of the UMSAS shall be finalized based on procurement price, cost of
transportation/courier, storage expenses and handling, packaging, cost of fund, marketing channel
expenses, profit margin to UMSAS (proposed 20%) and other factors.

The Artisans/ vendor will be allowed to supply maximum of Rs. 3 Lakh of products to the UMSAS, so
that all the vendor will be able to supply the product and benefited.

Selection of suppliers/ Artisans/ Products etc. for Procurement UMSAS will give preference to
procurement from the selected producers or artisans. The artisans who are part under UMSAS shall be
given preference. However, after 1-2 years of operation, other artisans can also become part organization
and start supplying to UMSAS.
The Artisans/ vendor promoted by UMSAS shall act as the key channels for all the Handloom &
handicraft procurement. The Artisans/ vendor shall arrange their own working capital either through
member saving or bank loan etc. to purchase the raw materials. UMSAS can consider providing working
capital to the best performing artisan’s/ vendors based on their business in future.

Maintenance of stock/ Store-

Steps 1: The Artisans/ vendors will be registered with UMSAS after providing the necessary information
and supporting documents before making any supply to UMSAS.

Step 2: The artisans/ vendor has to manufacture and handover the products to UMSAS marketing office
based on the communication from the UMSAS team on the requirement of different handloom/ handicraft
products.

Step 3: The handloom/ handicrafts products supplied by each Artisans/ vendors must be documented and
registered at the UMSAS and on getting orders the Artisans/ vendors shall be able to supply the same.

Step 4: The UMSAS has to develop one product portfolio guideline that will suggest the proportion of
different products category it shall maintain based on the demand-supply study.

Product display at Outlet

1. Merchandise should be at the focal point

2. Right colors must be chosen to attract customers.
3. Display themes to appropriately support the products shall pe practiced.
4. the most consumable products at the back of the store shall be placed.
5. Line the path to the back of the store with high margin items - Place high markup items and floor
displays, like the one below, along the way to those high-volume items in the back of your store.
6. Put seasonal merchandise and smaller high margin items at the front of store.
7. high theft items at the back of store should be placed.
8. Visual merchandising will be facilized by visual merchandiser expert.
Sales Strategy-
Signage, marquees, window display, coupons, gift card, discounts, offers, payment through online (card/
net banking/ UPI, wallets etc.) shall pe practiced.

Man power & organizational structure- The manpower requirement will be estimated based on different
work channels. At present the five market channels planned by UMSAS will have separate team for
effective management. They are as follows -
Designatio No of Qualification Skills
n Personnel
Store 1 Diploma / bachelor Customer Focus, Tracking Budget Expenses, Pricing, Vendor
Manager degree in retail Relationships, Market Knowledge, Staffing, Results Driven,
management with 2 Strategic Planning, Management Proficiency, Client Relationships,
years of relevant Verbal Communication
experience.
Cashier 1 Diploma / bachelor Customer service or Cashier experience.
degree in inventory Ability to handle transactions accurately and responsibly.
management with 1 High level of energy with strong customer service skills.
years of relevant Basic math and computer skills.
experience. Ability to stand, walk, lift heavy items, and work with other team
members in a fast-paced environment to provide excellent service.
Attention to detail.
Helpful, courteous approach to resolving complaints.

Inventory 1 Diploma / bachelor Solid knowledge of data analysis, inventory management software,
Executive degree in inventory and forecasting techniques.
management with 1
years of relevant
experience.
Sales 4 Diploma / bachelor Receiving, processing, and organizing shipments and deliveries
Assistant degree in retail accordingly.
management with 2 Restocking depleted or low shop items and ensuring that the sales
years of relevant floor is organized according to established guidelines.
experience. Assisting customers in locating desired shop items.
Informing customers of shop promotions to encourage purchases.
Performing regular price audits to identify and correct price
discrepancies.
Performing end-of-day cleaning duties, which includes wiping
down windows, mirrors, and fixtures as well as sweeping and
mopping the shop floor.
Addressing and resolving customers complaints in a professional
manner.
Processing customer payments using the shop's Point of Sale (POS)
system.
Maintaining an in-depth knowledge of store items to provide
advice and recommendations as needed.

Security 2 10th pass with 1-year Lifting, Surveillance Skills, Deals with Uncertainty, Judgment,
Guard experience Objectivity, Dependability, Emotional Control, Integrity, Safety
Management, Professionalism, Reporting Skills
Sweeper 2 NA NA
 MIS & Reporting – Mainly focus will be on procurement and sells database and reporting. Data will be
managed by Store manager on daily basis, weekly and monthly. It can be categorized in –
Procurement Database-
 Vendor wise procurement details
 Product categories wise details
 Date wise procurement details
 Weekly & monthly procurement details
 Quarterly & annually procurement details.
Sells database and reporting-
 Vendor wise sells report
 Product categories wise
 Daily sales report
 Weekly and monthly sells report
 Quarterly & annual sells report
Profit & loss analysis, break even analysis, expenses, operating cost etc. shall be evaluated regularly. All
the data & report will be shared to UMSAS.

Vendor Payment, return of unsold Products etc. - The artisans shall bring only selected products as
recommended by the UMSAS marketing team/ QCPC and will have to deposit the product at the UMSAS
store. Each artisan will get one unique ID number to be generated from the system automatically. The
receipt of the product will be issued to the artisans/vendor on the after verification by the store in-charge.
However, the payment towards the same will be directly transferred to the bank account of the artisans/
vendors within 15 working days after verification and bar coding.

The artisans will get only 25% of the procurement price fixed by QCPC within 15 working days of the
receipt of the products. The balance amount will be transferred only after selling the products by
UMSAS. In case the product is not being sold, UMSAS may offer a discount on it. The percentage of
discount will be decided by the QCPC on monthly basis. The proposed discount offer may be as follows:

Sl N. Criteria Discount price Affect to artisans

1 Products within 3 months of receipt 0% No reduction on payment to
2 Three to six month old stock products 10%
artisans/ vendors
3 Six to nine month old stock products 20% 10 % Less on Purchased price
4 Nine to 12 month old stock products 30% 20 % Less on Purchased price
5 More than one year old stock products 50% 30% less on Purchase price

Product Discount Policy

If the products procured by UMSAS are not sold within three (3) months, the following option may be
considered: -

 Announce discount offer on the old stocks as per above table

 Stop procuring the same product till the time old stocks are cleared
 Analysis the portfolio and come up with revised guidelines
 A parallel reduction in the payment to the Artisans/ vendor will also considered in case products
are remaining unsold after 3 months.

A discount will be given as per the above table. If the products are being sold after a discount of 20%,
than the artisan/ vendors will be paid less as proposed above. The artisans/ vendors shall have to agree for
the above arrangement during the time of registration.

Product Returns to Artisans after 6 month

There shall be an option for the artisans/ vendors to take back the products after a time gape of six month
if item supplied remains un-sold and replace it with new products. In case Artisans/ vendors are not
willing to replace the old product with a new product, they should pay back the 50% advance given
earlier.

Refund and damage of products

UMSAS will not receive any damaged products from any Artisans/ vendors. It will do a proper
verification of the products at the time of stock entry before entering into the inventory system and
handing over the product receipt memo.

Process

 Step 1: The Artisans/ vendors must bring the products to the UMSAS office in the morning shift.
No product will be received in the second shift (as concerned store in-charge will not get required
time to verify and entry the products in the system)
 Step 2: Verification of the products submitted by the Artisans/ vendors by stock in-charge
 Step 3: Return of the damaged product/products not meeting the quality check norms
 Step 4: Issue of Products receipt memo for products meeting the quality norms
Note: UMSAS will not return the damaged products to the Artisans/ vendors after receipt is issued to
Artisans/ vendors by stock in-charge. However, Artisans/ vendors may take back unsold products from
UMSAS after end of six months as detailed above. The necessary return note to be prepared by the store
in-charge and give it to the Artisans/ vendors on the spot and respective change in the stock register to be
done.