SUMMER INTERNSHIP REPORT

ON

WAREHOUSE OPERATIONS AND SUPPLY CHAIN OPTIMIZATION

AT

00 RETAIL

(A SBU OF 00 THOUGHTWORKS PVT. LTD.)

1947 Retail Page 1

 ACKNOWLEDGEMENT

First of all I wish to express my profound gratitude and sincere thanks to my Head of the Department
Dr. N.K.Sharma, who allowed me to do my summer internship in 00 thoughtworks Pvt. Ltd.
Gurgaon.

I would like to thank my mentor Mr. Saurav bansal (Sr. Manager Execution & Control) who was
always there to help and guide me when I needed help. I would also like to thank Mr.Varun ,
(Warehouse Manager) 00 Retail, his perceptive criticism kept me working to make this work more
fruitful. I am thankful to him for his encouraging and valuable support. Working under him was an
extremely knowledgeable and enriching experience for me. I am very thankful to him for all the value
addition and enhancement done to me.
Thanks are due to all the corporate staff especially to Mr Ashok Birla and other staff of Retail office.

Last but not the least I am indebted to all the persons who provided me their helping hands for the
completion of the internship.

Sushil Kr. Pandey

M.Tech (IME)
IIT Kanpur

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Table of Contents
COMPANY PROFILE..........................................................................................................................4
INTRODUCTION.................................................................................................................................6
1.1 Retailing Decision.................................................................................................................7
1.1.1 Warehouse location & capacity............................................................................................7
1.1.2 Store location & size.............................................................................................................8
1.1.3 Transportation.......................................................................................................................8
1.1.4 Shrinkage Control.................................................................................................................8
1.1.5 Information flow and control................................................................................................8
1.1.6 Accountability of goods........................................................................................................8
1.1.7 Stock management................................................................................................................8
1.1.8 Time division........................................................................................................................8
1.1.9 Software Selection................................................................................................................9
1.1.10 Website design....................................................................................................................9
BUSINESS MODEL...........................................................................................................................10
2.1 Supply chain of F&V...........................................................................................................10
2.1.1 Procurement........................................................................................................................10
2.1.2 Warehouse operations.........................................................................................................10
2.1.3 Front end operations...........................................................................................................10
2.1.4 Source of Improvements.....................................................................................................11
2.2 Suggestions for operation manual..............................................................................................11
3.1 Distribution centre model..........................................................................................................14
3.1.1 Creating a model.................................................................................................................14
3.1.2 Back End Processing..........................................................................................................14
IT IMPLEMENTAION AT 00 RETAIL.............................................................................................16
4.1 System Hardware Requirement for Retail Excel........................................................................17
4.2 Input Requirement.....................................................................................................................17
4.3 Output Produce..........................................................................................................................17
FACILITY PLANNING......................................................................................................................19
5.1 Facility planning consideration for 00 Fresh..............................................................................19
5.2 Proposed Facility Design...........................................................................................................21
CHALLENGES IN FRONT OF 00 FRESH........................................................................................23

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APPENDIX 1: TRAINING REQUIREMENTS FOR NEW LOCATIONS........................................24
APPENDIX 2: WEBSITE FRONT PAGE DESIGN...........................................................................25
APPENDIX 3: PASSES DESIGN.......................................................................................................28
Return Note.....................................................................................................................................28
Gate Pass.........................................................................................................................................29
Trip Sheet........................................................................................................................................30

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COMPANY PROFILE

00 ThoughtWorks Private Limited (ATW) is the corporate flagship of 00 Group – a diversified

conglomerate with legacy operations in co-operative banking and ventures in real estate,
infrastructure, hospitality and power. The company was incorporated in the year 2008, and has its
corporate headquarters in Gurgaon.
ATW is an inclusive infrastructure and services company and is working closely with World Bank
and the global GSM association to develop a platform independent, Service provider independent and
mobile hardware independent platform to provide mobile transaction processing to the mobile
powered global community on the move. Company’s initiative in the Mobile Banking Solutions will
enable banks to offer the convenience of comprehensive anywhere anytime banking, using GPRS,
WAP or SMS. It will support a wide range of mobile devices and mobile browsers. Banking
customers can query on account balances and make fund transfers. Banks can also proactively send
timely information to customers in a completely secure environment, whenever a customer-defined
event occurs. The mobile banking solution’s self-service capabilities empower customers to manage
their banking activities better. The solution also addresses data transmission and storage related
security concerns adequately, delivering a truly streamlined customer experience.
Their core banking solution will cater the needs of Co-operative and Rural Financial Institutions
(CFI’s and RFI’s) by providing the following core banking services:
 E- Banking
 ATM (Automated teller machine)
 M Banking
 Analytics
 CRM (Customer Relationship Management)
 Business Consulting

ATW also aims at achieving democracy of capital and diversify the ownership of wealth creating
assets in India. To make India the hub of business innovation and world class product development,
ATW has formed a business incubator in partnership with the leading b-schools and tech-schools of
India. The company aims at consulting and providing funds to every deserving business idea through
their ThoughtWorks Engagement program.

00 ThoughtWorks Private Limited works towards ensuring access to knowledge, technology, capital
and markets for the rural community in general and ‘bottom of pyramid’ community in particular i.e.
the focus of the company is towards the development of the rural class which serves the basis of the
Indian community.

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For the same the company has developed its own operational unit called 00 Rural Economic zone
(REZ). Their focus on rural markets is an extension of institutional intellectual fabric that is
passionate about empowerment of the bottom of the economic pyramid and bridging the urban-rural
divide in India. ATW is developing rural clusters across India that will be developed into 00 Rural
Economic Zones (REZ). The REZ’s enabling eco- system includes:
 Agro Business
 Micro finance built on the concept of ‘viable finance’
 Retailing
 Dairy
 Social infrastructure such as, education and healthcare
 Enabling infrastructure in terms of physical infrastructure and digital infrastructure
00 ThoughtWorks is working to provide the BFSI, Organized retail, Agro processing, Dairy,
Education, Healthcare and Government Social Security segments with end to end solutions that
include Core Banking Solution (CBS), Branchless Banking Solutions, Rural connectivity gateways,
Rural Information Highways and Mobile Transaction Processing platforms.
Currently the company is targeting around 2000 rural clusters across India to be developed into 00
Rural Economic Zone (REZ). The REZ ecosystem is enabled by:
 Digital Infrastructure
 Human resources that facilitate Quantum banking facilities and delivery of knowledge inputs
to the community
 Rural supply chain and logistics infrastructure that supports the sourcing and supply of
resources and produce respectively
 Social infrastructure for healthcare and education

00 Fresh is a SBU of 00 thoughtworks, the company has been functioning in the Gurgaon region
from past five months. The aim of 00 Fresh is to provide a single stop point shopping of daily needs
products to the premier societies of the Gurgaon city and Delhi NCR Region. The Company has
started its business with F&V (Fruits & Vegetables) and later make their presence in fmcg and
grocery market. The business model of the company is LOW MARGIN HIGH TURNOVER and the
present expansion plan is to cover whole DELHI NCR region with their mobile stores and kiosk
services moreover the company is also making tie ups with leading courier service providers and
laundry service providers etc to cater the need of the societies. The company is committed to provide
a highly satisfied shopping experience to these premier class societies.

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INTRODUCTION

India has been a great market for unorganised retail industry. There are so many moms & pop shops
and other unorganised retail models running in India from a very long time. As one of the fastest
growing economy power of the world, the retail giants and big corporates rate India as one of the most
potential market for the modern organised retail. The expected compound annual growth rate is 10%
per annum.

Above figure shows a very promising sector but from actual operations perspective it’s really a
challenge for the management to handle, control and execute the processes in a streamline way.

As a new country for the modern retail Indian players are facing the problems of lack of strong
experience work force and lack of benchmark practices available. The modern organised retail
business runs mainly in following formats:

 Low margin high turnover stores

 The grocery and FMCG stores run on this format to attain their profitability along with
consumer satisfaction.
 High margin low turnover stores
 Stores with non fmcg products such as precious jewellery items run their business on high
margin and low turnover.
 High margin high turnover stores
 This category is a win-win category, the products are rare and of high demand (for
example category killer stores: Haldirams in namkeen segment).

In India major players such as reliance fresh, spencer etc. operates on LOW MARGIN AND HIGH
TURNOVER model to provide a single stop shopping point to their customers. The success stories in
LOW MARGIN AND HIGH TURNOVER model is mainly due to the optimization of supply chain
practices, decrease of shrinkage, strong vendor relationship, strong front end and back end operations.

1.1 Retailing Decision

There are so many critical decisions involved in the retailing. At each level of decision innovation is a
key factor which makes one retail chain separate from others. The major decisions are:

1. Warehouse location & capacity

2. Store location and size
3. Transportation of skus
4. Shrinkage control
5. Information flow & control
6. Accountability of goods
7. Stock management
8. Time division
9. Software selection
10. Website design

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1.1.1 Warehouse location & capacity
The warehouse location and capacity is one of the critical decisions because a huge amount of initial
investment or a big rental investment depends on it. A company selects warehouse and distribution
centres on the following decision parameters:

 Future expansion plans

 The fixed cost involve
 Accessories and support services
 Infrastructure suitablity for facility planning

1.1.2 Store location & size

The retail store location & size selection should be such that it can address the maximum target
population and their needs. The evaluation of nearby competitors, availability of space and potential
market are some of the key factors that affect the selection of store location and size. A weightage
should be assign to each factor and based upon the total score selection should be made.

1.1.3 Transportation
Transportation involves moving of goods from warehouse to distribution centres and from distribution
centres to stores. The flow will be forth as well as back. The transportation decision involves the
timing, route, capacity of vehicle and type of vehicle.

1.1.4 Shrinkage Control

This is the major issue in LOW MARGIN HIGH TURNOVER retail business model. The main
operations of front end and back end focuses on the minimization of the shrinkage. The HR policies
and each and every point of the operation manual focus on minimization of shrinkage. Employee
retention and shrinkage control together is a big challenge for Indian modern organised retail sector.

1.1.5 Information flow and control

Information flow and control is of utmost importance to prevent shrinkage at each level. Operation
manual should be design in such a way so that a limited and necessary access of information should
be available at different positions. The decision of assigning the work to different individual should
not put extra burden on any department or individual. The authority of taking decision should not be
highly centralised.

1.1.6 Accountability of goods

The flow of goods from vendors to warehouse, warehouse to distribution centres, distribution centres
to store needs accountability at different points. The decision of assigning accountability at each point
needs to be considered before actual starting of warehouse operations. The shifting of accountability
in the absence of the warehouse in-charge and store manager will be another crucial point.

1.1.7 Stock management

Stock management at warehouse, distribution centre and stores all need to have some reserve stock in
hand to meet unnecessary demand. The stock level will based on sales figure calculation for at least
three months. In the initial stage extra stocks should be kept to meet customer expectation.

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1.1.8 Time division
Time division for delivery of goods at different stores and distribution centres need to be considered.
The lead time consideration for different stores and the number of stores to be covered in one day will
depend upon following things

 Location of stores
 Capacity of vehicles
 Sales of stores
 Stock level

1.1.9 Software Selection

For the purpose of proper information flow and material control, retail industry makes use of
specialized softwares available in the market. The selection of the software is a critical issue because
it is a one-time investment and the future governing of the operations depends upon the credibility of
the software. The major factors that influence the selection of the software are:

 Cost of procurement
 Expansion plan of company
 Compatibility with the hardware

1.1.10 Website design

Website design and database maintenance for online shopping requires following decisions to be kept
in mind.

 The decision support system for online shopping users

 Easy extraction of information
 Mapping of front end with the database
 Secure transaction model for online payment
 Different interface for different users

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BUSINESS MODEL

The retail operations of 00 Fresh follow the business model of LOW MARGIN HIGH TURNOVER.
The main source of earning in such a model is large volume selling of products at the store outlets.
The efficiency of the chain depends upon the efficiency of its supply chain, warehouse operations and
front end operations. In the section of business model we will explain the current practices of the 00
fresh followed by source of improvements.

2.1 Supply chain of F&V

The supply chain of F&V requires the description of following section:

1. Procurement
2. Warehouse operations
3. Front end operations

2.1.1 Procurement
The procurement department is responsible for the procurement of the F&V items from the Azadpur
Mandi New Delhi. The procurement team procure the items in accordance with the requirement send
by the warehouse manager. Procurement team is responsible for making initial check of the quality as
well as quantity. The loaded truck with fruits and vegetables reaches warehouse with a sealed lock.

2.1.2 Warehouse operations

After verifying the seal of the lock, the warehouse manager takes the charge of the vehicle. The picker
boys weigh the items and also make a rough quality check of each sku. Warehouse manager note
down the shortage (if any) in the supply of the skus and report the same to the procurement
department. After releasing of the vehicle following operations are carried out in the warehouse.

 Warehouse workers wash the Fruits & Vegetables.

 Workers make Stacks of different products (Random placing of stacks).
 Unifoodi provides supply of bananas.
 Green leafy vegetables come from the collection centre.
 The indent manager decide the indent and price of different commodities.
 The indent manager distribute the work to the dispatchers (Each dispatcher has a
responsibility to make stacks of some products).
 The assignment of work to the dispatchers is random i.e. based upon the subjective
knowledge of the indent manager.
 Workers make stacks of different locations and place them according to the locations of the
cluster. (For ex- cluster A stacks are placed together).
 The places for the cluster’s stack are not fixed.
 B2B managers carried out the B2B operations.

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2.1.3 Front end operations
The front end operation consists of the following things.

 The distribution vehicles collect the stacks of crates and deliver them to various locations.
 The shop personal makes a rough quality check and also check the quantity of different
commodities.
 The shop manager returns the empty crates and dump of the shop to the driver.
 The driver reports to the warehouse manager and give back the signed receipts of different
locations.

2.1.4 Source of Improvements

 From the past data and subjective knowledge of the commodities, assignment of these
commodities to the different dispatchers can be fixed. This will help in utilizing the man
hours effectively.
 The place for different cluster stacks should be fixed to avoid any mistake.
 Time of opening of the mini stores should be optimized.
 A proper facility lay out should be designed for the warehouse to optimize the warehouse
space utilization and manpower.

2.2 Suggestions for operation manual

The following points will assist the preparation of the operation manual for the distribution centres
and warehouse.

There are three main division of the whole process of distribution centre operations:

 Indent preparation of locations.

 Generation of purchase order and its receiving at distribution centre.
 Distribution of goods to the location and return notes.

Indent Preparation of Locations

 There will be clusters comprises of locations (2 or 3 in number).

 Each shopkeeper will generate the indent for its store on two fix day of week.
 The demand of the store should be for 3 days.
 In case any storekeeper will not be in position to generate the indent for his store, field
officer /cluster manager will generate the indent for that day.
 The warehouse manager will receive the indent from different locations.
 He will check the indent for any ambiguity.
 He will divide it according to the article (products).
 After preparing the article wise indent the role of purchasing starts.

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Generation of purchase order and its receiving at distribution centre

 According to the article wise demand, warehouse manager will generate the purchase order.
 The purchase order will also be depend upon vendor conditions and margin on skus.
 The vendor will send the goods to the distribution centre along with bill /invoice enlisting the
quantity and price of each sku.
 The warehouse manager will match the bill with purchase order and check for any shortage,
if in any case shortage is found than the warehouse manager will make the correction in the
bill at the same time and take a signed copy of it from the driver and should also inform about
the same to the vendor and upper management.
 The goods will be placed in the distribution centre according to the different divisions (bay)
in the warehouse.
 The warehouse manager will generate the transfer order and the pick list for different skus.
 The warehouse manager will divide the skus to different handy boys and they will stack the
goods according to the location.
 The stacked goods will be matched with the indent of that particular location.
 If the supply from the vendors is short then the required amount then the warehouse manager
will use safety stock to full fill the demand and make the entries in the system.
 If the safety stock is insufficient to meet the demand then the warehouse manager will issue
the sku according to the selling of different locations (priority basis).
 The goods will be loaded on vehicle locked with a seal and adhesive tape on it.
 The warehouse manager will issue a trip sheet .The sheet will include the sku name along
with their quantity.
 The distribution centre guard will issue a gate pass to the driver, without the gate pass driver
will not be allowed to take the vehicle out of the warehouse.
 The delivery to the store will be done with a lead time of one day.
o For example: if the demand will arise on Wednesday then delivery will be done on
Thursday.

Distribution of Goods to the Location and return note

 According to the indent of the locations the warehouse manager will supply the goods, if due
to human error the supply is short then the indent, the storekeeper will inform this to
warehouse manager and operation manger.
 The storekeeper will check the seal and the adhesive tape, after confirming he will take the
charge of the vehicle.
 The storekeeper will give a written note to the warehouse manager about the shortage (to
maintain the accountability the note should contain the signature of driver and the
storekeeper).
 The shortage will be supplied to the storekeeper in the next trip and a negative as well as
positive entry will be made in the system.
 The store keeper will make the relevant entry in the trip sheet.
o For example: vehicle IN Time, out time etc.
 The store keeper will give a return note to the driver indicating the sku and their quantity as
well as other material information like empty cartons etc.

1947 Retail Page 12

  The storekeeper then locks the vehicle with the store seal and adhesive tape.
 The vehicle will report back to warehouse with the return notes from different location.
 The warehouse manager will check the seal and the adhesive tape of the store and then only
he will take the charge of the vehicle.

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WEBSITE BACK ORDER PROCESSING

In this section we will form a model for the backend processing of the website orders. The section will
show the reports requirement for the smooth processing of the backend orders.

3.1 Distribution centre model

One main ware house and three distribution centre.
 Delhi distribution centre.
 Noida distribution centre.
 Gurgaon distribution centre.

3.1.1 Creating a model

Model creation requires all the reports of the Polaris software that we will use.
 Reports available for field officer.
 Reports available for distribution centre in charge.
 Reports available for warehouse in charge.

Reports Required
 Field officers will get a report about daily sales of different mini store.
 Field officers will get a report about daily stock of each commodity at different locations.
 Field officers will generate a report about daily return of each commodity for their cluster
(help for b2b processing).
 Distribution centre will get a report about the sales of their clusters.
 Distribution centre will generate the report about the availability of the various commodities
at the distribution centre itself.
 Distribution centre will get the report about the b2b stock for there centre.
 Distribution centre will generate the report of the daily dump.
 Warehouse will get the report about the sales of each distribution centre.
 Warehouse will generate the reports for the purchasing of vegetables from the mandi.
 Distribution centre will generate the report of the indent for various clusters.
 Warehouse will generate the indent for different distribution centre.

Probable Model
 First of all customer will check for the delivery location.
 If the location is in our covering zone, the customer will register with us.
 After the successful registration, the customer will shop through our website.
 Successful logging out.
 Wait and relax.

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3.1.2 Back End Processing
 An order is received by the central in charge.
 A central in charge will receive this order and locate the position of the customer from the
delivery address.
 He will release the order for the distribution centre, the distribution centre in charge will
check the stock of the nearest mini store and if the stock is available then he will release an
order.
 Field officer of that particular cluster will update the stock of the ordered commodity of each
mini store of the cluster.
 If the product is not available at the nearest mini store, the distribution centre in charge will
check at the other stores of the same cluster.
 If all the items of the order are not present at the nearest location but are available at the other
mini store of the same cluster, the distribution in charge will release an order for the later mini
store (this is necessary to deliver the products as a single order and to minimize the
unnecessary transportation cost).
 When the quantity of a product at mini stores will fall below a particular level, the
replacement of the products will be done by the distribution centre.
 The b2b customer will come in direct contact with the distribution centre only.
 *According to the location of b2b customer, we will show the b2b vegetables along with the
available quantity.
 *The distribution centre in charge will be responsible for procuring grocery items, the
decision of purchasing will be based on the available stock of the product at the centre itself.
 FIFO model will be used at distribution centres as well as at mini stores.
 Based on the demand of the distribution centres, warehouse in charge will release an order for
purchasing of the vegetables from the mandi.
 The continuous updating of the website will be done by a web development officer, this
officer will remain in touch with the distribution centre in charge as well as warehouse in
charge.
 *The model is a hybrid model of JIT and MRP.
 JIT for vegetables.
 MRP for groceries.
 Each distribution centre, field office and warehouse in charge will be provided with the
unique login id and password.
 According to their authority level, they can access only a specific part of the software.

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Elaboration Of the * Marked Points
According to the location of b2b customer, we will show the b2b vegetables along with the available
quantity.
Description:
 We will locate the b2b customer from his delivery address.
 We will check for the nearest distribution centre and available b2b amount of different
vegetables at that distribution centre.
 We will show only these products along with their amount on the website.

*The distribution centre in charge will be responsible for procuring grocery and fmcg items, the
decision of purchasing will be based on the available stock of the product at the centre itself.
Description:
 When the stock at the mini stores will fall below a particular level then replacement will be
done by distribution centre.
 In the same way when the stock of a commodity at distribution centre will fall below a
particular level then distribution centre in charge will place an order for that commodity.
*The model is a hybrid model of JIT and MRP.
 JIT for vegetables.
 MRP for groceries.

Description:
JIT (just in time) the pull system (demand flows from customer to mini store to warehouse) can be
applied on fruits and vegetables. We will not keep any inventory of vegetables and fruits at any
distribution centres as well as on warehouse.
MRP (Material Requirement planning) this is based on push system (demand forecast for each
commodity will be made and we will keep some inventory at our mini stores and distribution centres)
we will not apply jit on the groceries and fmcg goods.

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 IT IMPLEMENTAION AT 00 RETAIL

For the smooth governing and control of high volume grocery, fmcg and F&V items, retail industry
makes use of some of the specialised software available in the market.00 Retail has procured Retail
Excel (A product of Polaris Retail India Ltd.) for the very same purpose.

4.1 System Hardware Requirement for Retail Excel

Operating System Windows XP, 2K, 2003

PC Pentium IV or greater
RAM 512MB Minimum ,2GB Recommended
Hard Disk Space 40GB Available or Higher (Based on Higher DB
Size)
CD ROM Drive Yes
VGA POS 800x600 or 1024x768 or higher

4.2 Input Requirement

Polaris retail excels required one time input of MASTER SHEET. The MASTER SHEET contains all
the items in the prescribed format. The IT team can generate the database of the items on the excel
sheet and then the retail excel will map its pre specified sheet field with the ordinary excel sheet. The
user can make changes at any time. The MASTER SHEET preparation requires the description of
products, category divisions, sub divisions, weight, brand name, manufacturer name, vendor name,
vendor address, tax information.

Stock out and stock in orders from warehouse manager

4.3 Output Produce

Merchandise: RXL provides the flexibility to have multiple set-ups for different merchandise
types in one single installation. For example, diverse product lines such as
apparel, books music, consumer durables and groceries can be set up in one
application.
   
Inventory: Delivers inventory visibility across multiple locations, multiple merchandise
types and multiple product attributes. Relevant information is available at the
retailer’s fingertips to ensure the right product is available at the right store, at the
right time, for the right price.
   
Replenishment: The requisition and allocation process simplify decision making of what and how
much to replenish, thus optimizing inventory levels at all locations. View of
inventory across locations while allocating, lets you efficiently re-deploy slow
moving stocks leading to higher return on investments.
   
Procurement: Comprehensive purchasing solution that includes centralized procurement and
direct-to-store delivery. The module manages retailer’s complex network of
suppliers for smooth purchasing and delivery. It simplifies transactions and

1947 Retail Page 17

 provides access to relevant information at the right time, enabling better buying

decision.

   
Club& Support Customer Loyalty Programs and Promotions that increase customer base,
Campaign: visits per customer and sales per visit. The module captures customer
information, analyses buyer behaviour to help devise effective loyalty programs
for increased ROI.
   
Sales: Streamlines sales order processing with multi-departmental workflow, offering
tight interfaces to credit management, receivables and inventory. Consignment
Sales support offers the flexibility of using the franchisee route to expand market
reach.
   
Point of Sale: Simple, secure and powerful PoS solution with a fast four-click-a-bill process.
The powerful sales audit function helps quickly identify discrepancies in PoS
transactions.
   
Accounting: Comprehensive, easy to use accounting module with strong accounting control
features. The module offers online integration with other business processes and
eliminates duplication of entries.
   
Reports Delivers more than 80 pre-defined reports for a clear insight into all aspects of the
Analysis: business to effectively manage operations and take informed decisions for
competitive advantage. An optional report writer, IYFT (Information at Your
Finger Tips) gives freedom to design customized reports as per business needs.

1947 Retail Page 18

FACILITY PLANNING

Facility Planning stands for designing the whole infrastructure for the warehouse and distribution
centres to ensure the following essential things:

 Efficient utilization of manpower

 Safety and security
 Effective utilization of warehouse space
 Quality Maintenance
 Reduce human error

5.1 Facility planning consideration for 00 Fresh

After the selection of the warehouse location and appropriate dimension space. The role of facility
planning comes into play. The categorization of products in 00 Fresh has been done in following four
categories viz:

 Fruits & Vegetables

 Grocery
 FMCG
 Dairy

The facility planning includes the designing of bays (division).The divisions should be based on the
above mentioned categories only. This will help in locating the products. The internal division of the
bays will be based on the last description of the product in the master list

For example: If we are considering the example of chocolates (FMCG)

Main division: FMCG

Internal Division: Chocolates

The main points of consideration include:

 Placing of Bays
 The Placing of broad categories should be fixed as shown below

FMCG GROCERY F&V DAIRY

1947 Retail Page 19

  There should be some space left for the future consideration
 There should be proper space between the bays for the movement of workers

 Internal divisions in a bay

 The internal spacing of the bay should be according to the last category description
For Ex- FMCG internal division includes Chocolates, Body Soap etc.

Sub div Sub div Sub div Sub div

Sub div Sub div Sub div Sub div

Sub div Sub div Sub div

Sub div

Sub div Sub div Sub div Sub div

Sub div Sub div Sub div Sub div

Sub div Sub div Sub div Sub div

FMCG GROCERY F&V DAIRY

 The decision regarding the longitudinal or horizontal bay design will depend upon the
space and shape of the warehouse
 Under the sub division, further division of manufacturer and brand will be there
For Ex- Under chocolates sub division, further division will be of Cadbury. Nestle etc.
 The high selling sub division will be kept in front and so on

 Loading and Unloading considerations

 There should be sufficient unloading space in front of the main gate of the distribution
centres and warehouse
 The number of gates will depend upon the volume or inventory turnover at ware house or
distribution centres
 There should be sufficient space for loading of at least five medium scale vehicles
 There should be space for weighing and quality check
 There should be a separate space for vegetables treatment i.e., washing of vegetables
 There should be a space for a sufficient capacity store room
 Other Qualitative issues
 Space for the security personal
 Ventilation design
 Space for stacking of vegetables for different stores
 Space for B2B section (if any)
 Space for dump of fruits and vegetables

1947 Retail Page 20

 5.2 Proposed Facility Design

REFER INTERNAL SPACING

DIAGRAM

GATE

STORE ROOM

GATE 1 GATE 2

Washing Washing

Weighing/Q Weighing/QC Weighing/QC Weighing/QC

C

1 2 3 1 2 3 1 2 3 1 2 3

Loading/Unloading Loading/Unloading Loading/Unloading Loading/Unloading

Space Space Space Space

1947 Retail Page 21

Colour Code Description
Movement Of Workers
Blue Loading & Unloading Of Vehicles
Green Weighing and Quality Control
Red Washing Area
Orange Main Warehouse boundaries

1947 Retail Page 22

CHALLENGES IN FRONT OF 00 FRESH

00 fresh is operating in a very dynamic work environment. The major forces behind the need of
achieving excellence are given below:

 Delhi NCR region is a tier 1 region of the country. The esteem societies in this region require
high quality service.
 Almost all the major national players have their presence in this region due to which the
competition becomes healthier.
 Retail sectors demands day and night work. In such a competition and situation its become
very difficult to earn profit.

Some of the key challenges in front of 00 Fresh are shown below:

 Strong labour force recruitment and training program development

 Development of good transportation system for timely opening of stores.

 Minimization of shrinkage up to the Industry standards

 Recruitment and training of efficient front end staff

(Refer Appendix 1)

 Standardization of the indenting process

 Preparation of the new warehouse operations manual

 Proper IT implementation for all the stores and warehouse.

 Achieving HIGH TURN OVER for realizing the breakeven point

 Employee retention in such a dynamic sector (heavy work load)

 Competition with national players such as reliance fresh.

1947 Retail Page 23

APPENDIX 1: TRAINING REQUIREMENTS FOR NEW LOCATIONS

We require following model for new stores

 4 workers at each locations

 1 store manager (training of POS)
 1 Asst. store manager(training of POS)
 2 delivery boys cum maintenance boys(training of maintenance of store)
 Convincing power enhancement training to all the workers.

Training for maintenance of stores

 Proper tags on grocery products

We can put the tags for groceries items because their price variability will be very less.
 Price list for fruits and vegetables
Each day updated list of prices for fruits and vegetables should be there on the wall.
 After each hour there should be some spraying of water on vegetables.
 Some specified lines should be design for delivery boys
a) We should search for all the possible conversation and appropriate convincing answers to
each question.
For example: customer question your prices are high. Why should I purchase at this store?
Store person answerMadam our quality is best among all the retail stores.
Customer questionswhat quality. It’s not good.
Store person answermadam its because of season. We are trying to provide
You the best in the market then only u will come back.

In the same manner HR department should try to formulate every possible conversation and
then we will provide training to our workers.

 We should work out on looks of store workers for example-Mcdey people looks energetic
always.
 Training of Maintenance and cleaning of the store:
Some products are so much perishable like tomato; even after the fresh daily delivery of
products some of them get the bad shape very soon. Continuous removing of these items is
very necessary.
 Training on placement of items
Each thing in the store should have its specified place and each place should be dedicated to a
specified thing (these things are more related to store layout. We will work on it and design
some training guidelines).

1947 Retail Page 24

APPENDIX 2: WEBSITE FRONT PAGE DESIGN

FRONT PAGE

Description of different blocks and their work

1. Sign in on click event of sign in two links will get open.
a) New user
b) Existing member
2. Existing memberon clicking on existing member, two text box and a enter button should
get open where user will enter his user name and password.
3. New userthe registration form will get open.
4. HelpOn pass over event of help different options will get open.
5. Category tabson pass over event of mouse items under each category will get open in a
drop down list. User can select any of the items for its description.
6. Select sector list boxthis list box will help user to locate the nearest store and to tell him/her
that whether we are providing services in the selected sector or not.

1947 Retail Page 25

 7. Value added service blockin this section the flashy images of value added service will be
shown.
8. Contact usThis block will show our office address ,contact number, email id for queries

REGISTRATION FORM

PERSONAL DETAIL

TITLE

FIRST NAME LAST NAME

DELIVERY DETAIL

Select your Area

Society

Address Line 1

Address Line 2

CONTACT INFORMATION

EMAIL ID

CONTACT NO.

SIGN IN DETAIL

USER NAME

PASSWORD

RETYPE PASSWORD

Do you want daily updates about exciting offers on different products?

*We will send you a link on your email id, please confirm your registration by clicking on

that link to confirm your registration.

SUBMIT

1947 Retail Page 26

IMPORTANT CONSIDERATION

1. At the top of the every page there should be a link of home page.
2. Same colours throughout all the pages of website.
3. Same font (use standard font verdana).
4. The category pic block and category block will perform the same function.
5. There will be a fix layout (blocks) of website that will remain on each page.
6. On the click event of value added services. Description page of value added services will get
open.
7. Except of the pink section, other section will be there on each page.
8. There will be 4 items in select sector list box with scrolling option.
9. We require two database one for information collection and other for store locator
10. The database of store locator will also help us in defining the service zone
11. Tell the database design team to do normalization up to 3NF.

INSIDE INTO DIFFERENT TABS

Value Added Services

1. Home delivery
2. Call centre
3. Compare the brands
4. Recipes

Help

1. How to register with us.

2. How to do shopping
3. Terms & policies

Categories

1. Fruits & Vegetables

2. FMCG
3. Dairy
4. Grocery

Sub Categories

 Fruits & Vegetables

 Fruits
 Vegetables

 FMCG
 All FMCG products
 Dairy products
 All dairy products
 Grocery
 All grocery products

1947 Retail Page 27

APPENDIX 3: PASSES DESIGN

Return Note
Store Name: Date:

S.NO ITEM DESCRIPTION RETURN REMARK

PACK

CRATES/CARTONS RETURNED

BIG CRATES MEDIUM SMALL CRATES CARTONS

CRATES

Storekeeper Sign:

Driver Sign:

1947 Retail Page 28

Gate Pass

1947 FRESH WAREHOUSE DATE:

PASS NO:
Allow vehicle No ……………………………………….. to go out of the warehouse premises with the following item
itiitem items.
S.NO ITEM DESCRIPTION QUANTITY PERSONAL DETAIL

Driver Name ……………………………

Helper Name …………………………..

Time Out …………………………..

All items are checked with pick list

(Warehouse shift Incharge)

1947 Retail Page 29

 Trip Sheet

Vehicle No : Transporter Name : Date:

Type of vehicle : Warehouse out time:

Store name Big Crate Medium Crate Small Crate Total Crates Total Cartons Store IN Time Driver Sign Store Keeper

RETURN NOTE
Store name Big crate Medium crate Small crate Cartons Driver Sign Store keeper Remarks

Security Guard Shift Incharge EDP name:

Signature Signature sign :

1947 Retail Page 30