Project on ‘XYZ mart’ Departmental store

MGT314.17 – SUMMER 2020

Submitted By:
Ragib Yeasar Akhour
ID: 1611477030

Submitted to:
Meshbaul Hassan Chowdhury
Lecturer, Department of Management
School of Business & Economics,
North South University

Date: 23 May, 2020

Table Of Contents
Forecasting demand analysis:..................................................... 2
Forecasting Technique:............................................................... 2
Reason of choosing technique: ................................................ 2
Strategies for the sourcing process: ........................................... 3
Strategy Sourcing: .................................................................... 3
Process: .................................................................................... 3
Overall strategy sourcing process: ........................................... 3
Managing Inventory: .................................................................. 5
Inventory management strategy:............................................. 5
Control Quality: .......................................................................... 6
Capacity Planning:...................................................................... 7
Supply chain Process: ................................................................. 8
Forecasting demand analysis:
Forecasting is a calculation or estimate of future events by analyzing past and present data.
Forecasting helps to predict the upcoming situation. Our ‘XYZ’ departmental store predicts their
future demand by analyzing relative shops past data. At the beginning they could face many
problems like, Over storage of raw materials or shortage of ingredients. As we are relying on past
data series so Naïve forecasting method would be useful for ‘XYZ’ departmental store. For that it
has no virtual cost, quick and easy to prepare, easily able to understand to the employees. It won’t
be a highly accurate information but can be recognized as standard procedure. They precook some
of the ingredients to the demand that lasts all day long and it saves time. It is an efficient technique
to utilize the proper work time.

Forecasting Technique:
Forecasting fills in as choice help tools that permit leaders to get ready for the future by performing
"imagine a scenario in which" investigations to decide how changes in inputs influence results. To
get the best outcome from forecasts, leaders must know the better information of the various sorts
of determining techniques, perceive what a specific estimating strategy type can and can't do, and
realize what forecasting type is most appropriate to a specific need.
‘XYZ’ departmental store is a well-known branded store and they have qualified employee and
loyal customer as well and now when they have the opportunity to open an outlet in Bashundhara
RA they must follow a specific forecasting technique that can lead the company to the edge of
success.
As I am the Supply chain manager of their company, I would suggest them to follow judgmental
forecasting technique.

Reason of choosing technique:

‘XYZ’ departmental store need to forecast their demand by using naïve demand forecasting
technique and also by using the Judgmental forecasts it would be timely, reliable, meaningful and
obviously easy to use and accurate.
Our ‘XYZ’ departmental store is already well known in the city and this is the reason we got the
permission and opening an outlet to Bashundhara RA. As we have qualified employee and loyal
customer so therefore, we can easily get opinion form Executives, sales forces, outside opinion.
Delphi method would be useful for our new outlet. Bashundhara RA is densely populated area and
we can get enough survey form our targeted and non-targeted customer. Our employee and leaders
are experienced and they faced many unusual difficulties to obtain their position so their decision
and opinion would be help to forecast. And this is why Judgmental technique is the best option for
opening ‘XYZ’ departmental store new outlet in Bashundhara Ra. And this is why Judgmental
technique is the best option for opening ‘XYZ’ departmental store new outlet in Bashundhara Ra.
And this is why Judgmental technique is the best option for opening ‘XYZ’ departmental store
new outlet in Bashundhara Ra. And this is why Judgmental technique is the best option for opening
‘XYZ’ departmental store new outlet in Bashundhara Ra. And this is why Judgmental technique
is the best option for opening ‘XYZ’ departmental store new outlet in Bashundhara R
Strategies for the sourcing process:
Strategy Sourcing:
• Continuously improves and evaluates the purchasing activities of a company.
• Is a professional and disciplined process that always produces total cost savings.
• Requires no capital investment.
• Operations aspects (salaries, travel, etc.) pay for themselves.
• Effective use of Web-based information and tools streamline the process.

Process:
The process is important to the ultimate success is:
• Skills of Strategic Sourcing Team.
• Organizational commitment.
• Effective utilization of resources.
• Knowledge of emerging trends such as:
1. Syndicated Commerce.
2. Customer-centric commerce process.
3. Integration of ‘Big Data” tools into the process.
4. Improving ease of use to improve compliance.

Overall strategy sourcing process:

Profile Spend

Develop
Merchant
Sourcing
Management
Strategy

Implementation Survey Market

Negotiation
&
Selection
 ❖ Profile spend:
Understand everything about the spend category as the first step in the strategic sourcing process.
• Defining the category and commodities in it.
• Volume or quantity used types and sizes.
• Who are the users,
• Where are they located,
• What are the processes used and
• Who else is involved in the supply chain.
Data documented in as much detail as possible may be needed.
❖ Develop Sourcing Strategy:
• Identify potential new global and local suppliers.
• Study the cost components of the product or service,
• Analyze the suppliers’ marketplace for risks and opportunities.
Key raw material prices and other variables such as labour and transportation must be priced and
calculations are done of the suppliers’ cost elements.
❖ Survey Market:
Deciding where to buy while minimizing risk and costs is how you develop the strategic sourcing
strategy. Using a cross-functional project team is a must. The strategy will depend on what real
alternatives there are to the current suppliers, how competitive the supplier marketplace is and
importantly, how open the users are to new suppliers.
❖ Negotiation & Selection:
• The first round of the negotiation process conducted with many suppliers
• Reducing the bids to the valid ones asking for clarifications and more detail
• Multiple rounds of negotiations to get to a shortlist.
• The final selection is usually done by the team and signed off as per the approvals.
❖ Implementation:
Notify the successful suppliers
• Ensure successful suppliers are involved in the implementation process. And this is why
Judgmental technique is the best option for opening ‘XYZ’ departmental store new outlet in
Bashundhara Ra.
• Develop communication to include:
1. improvement to specifications or process.
2. changes in delivery or service requirements.
3. Changes in pricing.

❖ Merchant Management:
• Start of a continuous cycle
• benchmarking the current status of the commodity or category.
• monitoring the results.
• ensuring that full value is being achieved.
Back to Step 1 to review the supply market again and restart the process in a constantly evolving
marketplace.

Managing Inventory:
Controlling the material usage i.e. purchasing and issuing material in optimum cost and time.
• Maintaining the database for the ease of analysis i.e.
1. Material required
2. Material purchased and
3. Material used
• Allocating the specific material to the specific location to make storage easy and damage-free.
• Ease of tracking database and material.

Inventory management strategy:

In ‘XYZ’ departmental store I would like to use ABC inventory management technique that
depends on taking care of items into classifications of significance, with A being the most
important and C being the least. Not all items are of equivalent worth and more consideration
ought to be paid to progressively famous items. Although there are no firm standards, ABC
investigation inclines toward yearly utilization units, stock worth, and cost hugeness. Classes
commonly look something like:
The key is to operate each category separately, particularly when selective control, allocation of
funds, and human resources are required.
Also, we can use Barcode technique for managing inventory. In case you're a small retailer, it may
not be achievable to risk overloading. For this situation, you should think about naming the thing's
"Purchase currently" button as "Pre-request" or "Recover yours when it comes in stock." This
makes a sensible desire for clients that it will take somewhat longer to show up.
On the other hand, a few organizations run with a "no-stock" approach which includes taking just
delay purchases until they've produced enough deals to then place a huge mass all together with a
provider.

Control Quality:
Human error: Capacity planning Capacity planning Capacity planning Capacity planning
Burger lab has 5 permanent waiters, so at times it becomes difficult for them to handle the situation.
They often have to work for a longer time, resulting in human error. Besides, during rush hours to
maintain the crowd and time the chef’s rush into the work resulting in burned patties, overcooked
mushrooms.
Order placement time:
The toughest time they face is during lunchtime. It takes 10-15mins to place an order. Since the
traffic is huge during that time, so it becomes like a bottleneck. During that rush hour employee
shortage is seen. Capacity planning Capacity planning Capacity planning Capacity planning
Error in quality: Capacity planning Capacity planning Capacity planning
Quality of the food is not always constant. During rush times the quality varies and a few times
people have faced problems like the bun of the burger is cold, not even at room temperature and
also overcooked foods. In terms of service businesses like ‘XYZ’ departmental store, two
performance objectives play the most important roles which are: And this is why Judgmental
technique is the best option for opening ‘XYZ’ departmental store new outlet in Bashundhara Ra.
• Quality: Main services in product based includes serving hygienic food item, taking note of
customers complaints which should be maintained carefully to provide good quality service.
Service quality is also a competitive factor of service business operations which makes the
business stand out from similar ones. Managing expectations for waiting time, appropriate service
delivery and monitoring indications of customers’ satisfaction level all fall under the quality of
service. Capacity planning Capacity planning Capacity planning Capacity planning
• Flexibility: This explains how flexible service is in providing a wide variety of products and
delivery time of the service. For instance, problem-solving policy and giving the customer the
main priority. Also having extra facility options and providing home delivery within an hour is a
flexibility measurement for our store. Having these kinds of flexibility in a service business can
enhance their chance of gaining customers. And this is why Judgmental technique is the best option
for opening ‘XYZ’ departmental store new outlet in Bashundhara Ra.

Capacity Planning:
Capacity planning is the process of determining the production capacity needed by an organization
to meet changing demand for its products. Capacity is the rate of the productive capacity of a
facility. Capacity is usually expressed as volume to meet the production objective. Capacity
planning
Capacity is the upper limit or ceiling on the load that an operating unit can handle and it includes
1. Equipment
2. Space
3. Employee skill
‘XYZ’ departmental store produces groceries and most of them are based on consumers need. So,
we planned to create a long-range capacity planning in the store. In Bashundhara more than 4000
family lives and to create and full-fill their need we have to be prepared and increase as much
capacity as we need.
Design capacity: We need to design the capacity at maximum for operation, process or facilities
for maximum output.
Effective capacity: in comparison with maintenance and scrape from where we can get the
efficiency.
Actual Output: when our rate of actually achieved as we planned then we can also get the efficiency
of our store. Capacity planning
Efficiency and utilization:
Form these three sources we can find out the efficiency and utilization of our store.Capacity
planning Capacity planning Capacity planning Capacity planning Capacity planning
We can use Waiting line analysis for our store. It is useful for designing or improving the systems
of the services. This waiting line occurs across the world and it causes by the bottlenecks in the
process. If the waiting line in huge and we can not provide enough space for customers it helps us
to understand the level of capacity which will be cost-effective and by balancing the cost of having
customers wait in line with the cost of additional capacity.

Supply chain Process:

Supply Chain management approach attempts to manage both upstream and downstream activity
within the supply chain. There are two types of function in supply chain Physical function and
market mediation. For our ‘XYZ’ departmental store, we will follow Market Mediation to ensure
that the variety of products reaching the market matches what customers want to buy. Its cost arises
when the demand for the supply exceeds and the product has down in the market. When supply
falls lack of demand leading to lost sales and dissatisfied customers. Our store follows Network
system in the supply chain system.
In our store, we will have External and Internal Supply chain management. External SCM involves
relationship directly to customers via marketing and sales and Internal SCM include among the
organization.

And this is why Judgmental technique is the best option for opening ‘XYZ’ departmental store
new outlet in Bashundhara Ra
Value chain

Firm infrastructure: Decision-making process top-down and dynamic infrastructure.

Human Resource Management: Employee training and Recruit new employees.
Technology Development: Improving Technology updated for better user friendly to the customer.
Procurement: the management team will monitor the overall value creation.
Inbound logistics: There will specifically place and shelf for a specific brand and they will buy
that as a supplier and we will sell their product to the customer. Capacity planning
Operation: Place the product in a proper style that employee can monitor if there any6 lack of
product which need to be refilled. Capacity planning Capacity planning Capacity planning
Marketing and sales: Promotion through an online platform and giving customer extra facility by
having a membership card. Capacity planning Capacity planning Capacity planning
Service: It’s a self-service shop but there will be our employee to help and guide our customers.
And this is why Judgmental technique is the best option for opening ‘XYZ’ departmental store