NARMADA COLLEGE OF MANAGEMENT

Management information system

Submitted by:- Submitted to:-

Payal Yadav. NISHA DUBEY MAM
Pinky Mahto.
Afroz Manihar.
Pooja Das.
.
 D-MART
D-Mart is a one-stop supermarket chain that aims to offer customers a wide range of basic
home and personal products under one roof. Each D-Mart store stocks home utility products -
including food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home
appliances and more - available at competitive prices that our customers appreciate. Our core
objective is to offer customers good products at great value.

ORGINASTIONAL STRUCTURE:

They are decentralized. Having different CEOs or heads for different zones and
they are connected to one central power i.e., board of directors or the
chairperson.

Contracts will be made with various novelty of product brands for distribution to
godowns and from there the distribution among the zone will occur.

Every activity will be recorded according to zones and group of zones only and
forwarded at one to make the final.

Chairperson.

Board of Directors.

Department for each operation.

Zone heads.

Zone directors.

Zonal superintend.

Zonal distributor.
Employees as accountants, salesperson etc.,

TOP
MANAGEMENT

MIDDLE MANAGEMENT

LOWER MANAGEMENT

Value Chain Analysis of DMart: Disrupting Food Retailing Case Study

Value Chain and Value System

D-mart Geographies value chain is part of a larger value system of the industry that includes
companies either upstream (suppliers) or downstream (distribution channels), or both.
Manager at D-Mart: Disrupting Food Retailing needs to see each activity as part of that value
system and how adding each activity or reducing each activity impact the D-Mart: Disrupting
Food Retailing value chain. The decision is regarding where to sit in the value system.

Value Chain Activities – Primary Activities & Support Activities

As per the Value Chain model there are broadly two generic categories of activities – Primary
Activities and Supporting Activities.

What are Primary Activities in Porter’s Value Chain?

As illustrated in the Value Chain diagram, D-mart Geographies has five generic
categories of primary activities –

Inbound Logistics
These activities of D-mart Geographies are associated with receiving, storing and disseminating
the inputs of the products. It can include warehousing of physical products, material handling,
as well as architecture to receive and store customer information for digital media company. D-
mart Geographies at present has outsourced most of its inbound logistics activities .

Operations
Contrary to their peers and rivals D-Mart has always stuck to their own stores and deliberately
avoided the malls, which might have otherwise risked the overall sales of the company and
increased the expenditure.

Besides, the company is also not very comfortable expanding geographically. The company had
its stores only in 4 Indian states until 2014, which only expanded in recent years to 11 states.
One another thing is that D-Mart attracts low marketing costs because the main marketing
strategy of D-Mart is that the company is recognized among its end-users via “word of mouth.”

Outbound Logistics
D-mart Geographies under takes these activities to distribute the finished products to channel
partners and final buyers. Outbound logistics activities include – distribution network,
scheduling, processing, wholesalers and retailers order fulfillment, and warehousing.

Marketing and Sales

D-Mart uses both visuals and print advertisements to promote its name. The visual
component consists of hoardings that are displayed in major locations of stores announcing
specific product offers. It also uses newspaper ads that contain information about sales and
coupons.

Service
D-Mart is a one-stop supermarket chain that aims to offer customers a wide range of basic
home and personal products under one roof. ... Our core objective is to offer customers good
products at great value.

What are Support Activities in D-mart Geographies Value

Chain?
As the name explains, Support Activities of D-mart Geographies are the one that supports the
firm’s Primary Activities. Porter divided the Support Activities into four broad categories and
each category of support activities is divisible into a number of distinct value activities that are
specific to the industry in which D-mart Geographies operates. The four generic support
activities are –

Firm Infrastructure
Firm infrastructure support activities at D-mart Geographies consists activities such as – legal
services, quality management, finance and accounting, planning and general management.
Firm infrastructure activities at D-mart Geographies supports entire value chain though the
scope varies given that D-mart Geographies is a diversified company even within the industry.
For example the finance and planning at D-mart Geographies are managed at corporate level
while quality management, accounting and legal issues are managed at business unit level.

Human Resources Management

In an environment where each organization is striving to become a learning organization,
Human Resources Management is key to the success of any organization. HRM support
activities include – Recruiting, Training & Development, People Planning, Skill Assessment,
Selection, Hiring and Compensation at both business unit level and corporate level.
Human resource management affects competitive advantage in any firm, but in some industries
it is defining factor. For example in the consulting companies HR is the main source of
competitive advantage.

Technology Development
Technology support almost all activities in modern day organization. Technology development
at D-mart may include such activities. Avenue Supermarts (D-Mart ) uses 11 technology
products and services including HTML5 , Google Analytics , and jQuery , according to G2 Stack.
Avenue Supermarts (D-Mart ) is actively using 24 technologies for its website, according to
BuiltWith. These include Viewport Meta , IPhone / Mobile Compatible , and SPF .

Procurement Activities at D-mart Geographies

Procurement activities at D-mart Geographies include activities that are undertaken to
purchase inputs that are used by D-mart Geographies value chain. It doesn’t include
purchase inputs themselves. Purchased inputs may include - raw materials, supplies,
machinery, laboratory equipment, office equipment, and buildings.
Like all other value chain activities procurement also employs technology for things such as –
procedures, vendor management, information system, and supply chain partner qualification
rules and ongoing performance evaluation.

Strategy of D-Mart.
Hypermarket chain D-Mart's strategy is really simple — sell groceries and daily
use items like soaps to consumers at bargain prices. Because if there's one thing
that all Indians love, it's a discount to the MRP! And that gets people to flock to D-
Mart for their grocery fix.
Porter’s competitive force Model

1.Competitive Rivals

Future Retail

Reliance Retail

• Competition

Price , Price , Price

Reason for Affordable price

1. Not on Fancy Location

 2. Basic Need Items

D-mart is not located at metro city it will reduce its rental costs as compare to future store
and reliance store. It gives power to D-mart to lower its selling price against its Rivals future
store and reliance store.

2. Bargaining power to supplier

The bargaining power of suppliers for D-Mart is low, Because D-Mart is a giant retail store,
D-mart itself in a dominating position due to its giant network and bulk buying so the
supplier have lower barging power in front of such a Giant retail store.

3.Bargaining power of Customer

1. Lower price than M.R.P

2. Its save 6 to 15% on bulk buying on grocery.

3. Fresh Quality edible products ( Milk , Ghee )affordable price.

4.Threats of Substitution Product

1. Local Super-Mart ( Example – Dhiraj & Son’s in Ankleshwar)

2. Limited Geographical Location.

3. Local Retail for Greater Quality upon Edible product ( Example: Dairy)

5.Threat of New Entrance

1. Local Retail Store with low capital become a Competitors.

2. Giant retail store with bulk buying reduce its cost price.

3. Online Retail Store.

4. Monthly payment system by the local retailer shop of household product.

TRANSACTION PROCESSING SYSTEM (TPS):
Type of information system that collects, stores, modifies, and retrieves the data
transactions of an enterprise.

Types of Transaction Processing System:

There are two type of transaction processing system:

1.BATCH PROCESSING

2.REAL-TIME PROCESSING:

An e-commerce website use a TPS to process credit card transactions in real time
to ensure payment before the d-mart starts its fulfillment process. Processing
transaction in real time also helps d-mart identify and address errors quickly, as
well as increase its overall response time.

MANAGEMENT INFORMATION SYSTEM (MIS):

MIS provides information for the managerial activities in an organisation. The
main purpose of the MIS is to give manager feedback about their own
performance; top management can monitor the d-mart as a whole.Information
displayed by the MIS typically shows “actual” data over against “planned” results
from one year before; thus it measures progress against goal.

The MIS receives data from d-mart units and functions. Some of the data are
collected automatically from computer linked check-out counters; others are
keyed in at periodic intervals.

DECISION SUPPORT SYSTEM(DSS):

A decision support system produces detailed information reports by gathering and analyzing
data. Hence, a DSS is different from a normal operations application, whose goal is to collect
data and not analyze it.

In an organization, a DSS is used by the planning departments – such as the operations

department – which collects data and creates a report that can be used by managers for decision-
making. Mainly, a DSS is used in sales projection, for inventory and operations-related data, and
to present information to customers in an easy-to-understand manner.

EXECUTIVE SUPPORT SYSTEM (ESS):

An Executive Support System (ESS) is software that allows users to transform enterprise data
into quickly accessible and executive-level reports, such as those used by billing, accounting and
staffing departments. An ESS enhances decision making for executives.

ESS is also known as Executive Information System (EIS).

An ESS facilitates access to organized enterprise and departmental data while providing analysis
utilities and performance assessment predictors. An ESS provides potential outcomes and quick
statistical data that are applied to decision making processes.

Customer Relationship Management(CRM):

Customer Relationship Management or CRM consists of strategies, processes, and software
that manages your company’s interactions with customers and potential clients.

CRM can be used in marketing, sales, and operations, to monitor and improve relationships,
and upsell clients.

D-mart uses CRM to promote collaboration and deal with customer issues quickly and
efficiently.

By using CRM software, every member of a D-mart team can identify issues, monitor
customer behaviour and social media to promote offers and promotions.

Moreover, team members can use mobile apps on the go to access customer history anytime and
anywhere, create and update work orders, and send out field technicians in real-time.

EXPERT SYSTEM:
“An Intelligent computer program that uses knowledge to solve problems and such knowledge is
only possessed by experts”
Expert system is a branch of artificial intelligence that makes use of specialized knowledge to
solve problems at the level of human expert. Expert system takes the role of a human expert and
solves the problem like a specialist. It allows the user to work interactively with the computer in
order to develop a variety of decisions. Expert system can provide consistent answers. Expert
System holds quality information.

Components of Expert System:

Knowledge Base: It consists of relationships rule, data rule which are generally used by experts
to solve different types of problems. It consists of professional knowledge possessed either by an
expert or a group of experts.

Inference Engine: It contains logic and resolving mechanisms.

User Interface: This program allows user to communicate with the expert system.

Explanation facility: It provides the user with the logic used by the expert system to solve the
query.

Knowledge Acquisition facility: A good knowledge base requires efforts of both human expert
and a knowledge engineer.

SUPPLY CHAIN MANAGEMENT:

We would stress upon the Sales Channel of FMCG to highlight the low pricing strategy of DMart. Many
factors like Low Advertising, less Debt and own buildings contribute to less pricing. One
major factor lies in Dmart’s Purchasing power.
Let us see how a FMCG manufacturer distributes its products in India. Look at the below picture, I have
taken an example of a Soap manufacturing company distributing its product. Factory manufactures soaps
in Batches. Then, Stockists bulk break them into dozens, Wholesaler and retailer to packets and at last
consumer buys 2 -3 packs. Stockists buy really huge quantities; hence they have bargaining power.
 SUPER
FACTORY STOCKIST WHOLESELLER RETAILER CONSUMER
STOCKIST

For ex: A Soap priced at Rs.40 will be sold at Rs 35 to Stockist, in turn stockist sells it to 37 to
wholesaler, by the time it reaches consumer it will be sold at MRP 40 or 39.50. DMart has 110 Stores
spread across Indian Cities, DMart buys products for its whole 110 stores, the sales channel is almost
direct now, DMart does not need many warehouses, Inventory is at its store and consumer picks it up,
Inventory turnover is optimal which cuts down the storage costs.

FACTORY D-MART CONSUMER

With its direct bulk purchase DMart has eliminated middleman and the commission is passed as
discounts to consumers. Well, if you think all products are cheap in DMart then you are wrong. FMCG
products are used as anchor to sell its high margin products like Toys, Fruits & Vegetables,Grocery &
Staples,Crockery & Plastic Containers. Moreover, Dmart has its own branded products in Grocery,
Home & Personal Care section which has high margins.

Recently there were some protests by wholesalers on retailers picking products from Dmart. Now,
DMart has introduced Maximum purchase quantity restrictions at its stores to discourage retailers and
ensure only end users purchase products from them.

ENTERPRISE RESOURCE PLAN (ERP):

Dmart and all the supermarket are using POS Software to handle there billing or checkout
process.

POS software is what brick and mortar retailers use to conduct sales. It's sometimes a cash
register, computer, or even an iPad where cashiers input your products, tally the cost, and
conduct the financial transaction. Most POS software will also communicate with inventory
levels to keep everything in balance. A lot of big box stores have wildly expensive POS
solutions, some of which were custom built for their needs. Smaller retailers are moving away
from these traditional POS systems and toward cloud based point of sale solutions.

Here are the best pos software that big mall and supermarket uses

• HDPOS Smart - By Hyperdrive

• GoFrugal
• Shopify POS
• Retail POS