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OPS_SOP_HGX_MK_v5

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OPS_SOP_HGX_MK_v5

  1. 1. Health & glow XPRZ Business Requirement Definition Proposed e-Commerce Business Process and SOP guidelines for F2c LSCM. IECDS – Integrated e-Commerce Delivery System Version 5 Kannan Murthy 04/05/15
  2. 2. Author (s): Type: Ref No: Kannan Murthy BRD For Integrated e-Commerce Delivery system for F2c Operations Process & SOP. HG / IECDS / 2015-003 Date: 04-04-2015 Knowledge Transferred by: Pages: Language: Version: Kannan Murthy English V5.0 Confidential Status: ( DD-MM-YYYY ) (DD-MM-YYYY) Until To be reviewed and approved Title: BRD For Integrated e-Commerce Delivery system for F2c Operations Process & SOP. Reviewed: DEPT Designation Name Initial Date OPS COO Mr. Guruviah ITN Sr. Director IT Mr. Ajith Kumar FIN CFO Mr. Naveen Approved: DEPT Designation Name Initial Date BUS Chief Executive Officer Mr. Venkatesh. P Abstract: e-Commerce Delivery services (ECDS), as a young industry, are currently experiencing a rapid growth to fulfil the increasing demand. With the aims of being fast, safe, controllable and traceable. HGX have developed a quite different logistics network and systems in their Logistics process – That is called IECDS, Integrated E-Commerce Delivery System. The purpose of this review was to describe more about IECDS network models, like the (F2C) Fulfilment centre 2 Consumer paradigm - As well as the way of IECDS processing. In addition how better advanced and automated technologies and methods, like live update, live monitoring and supportive system, integrated Delivery app module with geographical information assistance for optimizing the Network, accelerating the delivery speed and improving services. The whole logistics chain of IECDS was to be presented in this BRD.
  3. 3. 1. Introduction: ‘DO RIGHT AT FIRST TIME’. E-business involves business processes spanning the entire value chain: Electronic purchasing and supply chain management, processing orders electronically which involves online payments via credit cards or debit cards, handling customer service. India has an internet user base of about 250.2 million as of June 2014. 14. The penetration of e- commerce is low compared to markets like the United States and the United Kingdom but is growing at a much faster rate with a large number of new entrants. The industry consensus is that growth is at an inflection point. Unique to India (and potentially to other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-commerce business in India in the long run and there is a need to make a shift towards online payment mechanisms. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorized distributors and e-commerce offerings. India's retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. According to Forrester, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012 – 2016. As per "India Goes Digital",[10] a report by Avendus Capital, a leading Indian Investment Bank specializing in digital media and technology sector, the Indian e-commerce market is estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to grow at a rate of 22% over the next 4 years and reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated at Rs 3,600 crore (US$800 mn) in 2011 and estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015. Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$24 billion) by the year 2015. 2. Purpose: ‘OPERATION IS THE BACKBONE of LOGISTICS.’ To establish the most efficient OPERATIONS PROCESS FLOW and SOP GUIDELINES for HGX LOGISTICS and SUPPLYCHAIN. 3. Background: The PROCESS FLOW & SOP GUIDELINES describes the procedure to be followed from the time of ORDER TRANSMIT to till FINAL DELIVERY and returning UNDELIVERED ORDER back to STORE / F2C also the stock status update in system. Any COMMERCIAL SHIPMENTS from anywhere in INDIA, COMMERCIAL INVOICE COPY has to be accompanied while dispatching the shipments and VAT / TIN NUMBERS must be stated on the INVOICE / BILL also the INVOICE / BILL Copy has to be placed with inside of the pouch. The Invoice should have visibility for anyone to check.
  4. 4. 4. DEFINITIONS: For the purpose of this document, the following words will be defined as follows., a. HGX – “Health & glow Xprz b. ECDS – E-commerce Delivery System c. IECDS – Integrated E-commerce Delivery system d. 3PL – Third Part Logistics e. COD – Cash / Card / Coupon on DELIVERY(At the time of DELIVERY INVOICE VALUE needs to be COLLECTED) f. PAID /NON COD – PRE PAID (INVOICE VALUE has already been PAID by CUSTOMER over the Online) g. Product, Item – unit of Articles h. Order – A demand or request from the Consumer for supply of products i. Shipment - Consolidated Orders or Items or Products or Article j. Air Way Bill (AWB) / Tracking number – Primary reference number used for tracking by 3PL k. Order reference Number – Primary reference number used for INTERNAL reference by HGX l. Invoice number – An unique number which is used in every sale transaction m. Delivery Run Sheet / App (DRS or DRS-A) – An unique number used while assigning a set of Orders / Invoices will be assigned to a Delivery agent n. F2C – Fulfilment Centre to Customer o. Current Stores – Present retail shops p. WH –Warehouse q. Supportive System – Proactive & Reactive monitory team, Helpdesk or Customer Support r. Proactive monitory – Service Quality or Service Excellency or Performance and Gap analyzes Team s. Reactive monitory – Exceptions, Incident monitory t. URN – Unique reference number u. MA – Marketing Ambassador (Delivery Executive) v. OMS – Order management system w. MDM – Master Data Management x. Trip – No of round travelled for Delivery y. PAD – Personalized Automated Device z. IV – Invoice executed aa. MR – Money receipt bb. TD – Transit Damage cc. IS – In scan (Order picking stage) dd. OC – Q C passed (Order QC check stage) ee. RTS – Ready to ship (Packing stage) ff. OS – Out scan (Order assigned to a Delivery boy - dispatched) gg. IT – In transit hh. TAT – Turnaround time ii. UD – Undelivered jj. OC – Order cancelled kk. OPC – Order partially cancelled ll. FD – Future Date Delivery mm. DL – Delivered nn. RSI – Returned Stock In warded oo. CR – COD has been remitted pp. CL – Transaction Completed (The Order Delivered and the transaction completed) 5. Hypothesis: During initial days F2c Operations would be performed from the existing Outlets this approach have been initiated bearing better control, Cost and resources optimization in mind. There will be a Manager, who is responsible for complete Fulfilment centre (Store) – under the manger there ll be RUNNERS who will perform ORDER FULFILMENT and FILED OPERATIONS. To begin with one RUNNER from each selected F2C and he ll perform ORDER FULFILLMENT and FIELD OPERATION. The present STORE MANSGER ll VALIDATE (RTS) process also reconciliation management.
  5. 5. MMS / OMS Pushes the Order to IECDS, after the validation 6. Scope of IECDS, Integrated e-Commerce Delivery System (F2C function): Scope of IECDS are as follows.,  Retrieving Order information from MMS / OMS  Pushing them in to F2C for Order fulfilment,  Competency in holding and navigate SKU level and related information in order to manage Order fulfilment  Control in scrutiny of Order fulfilment validation  Capable in Delivery assignment  Visibility in Field operations with real time tracking information  The system should be well equipped in order to measure and scale-up individual contribution and performance  Provision to monitor leg to leg transaction so that the gap can be analyzed and the Excellence in service can be established.  Robotic reconciliation system  Exactitude in MIS 7. INTEGRATED E-COMMERCE DELIVERY SYSTEM (IECDS)  Figure 1 – Over view Diagram of E2E IECDS SYSTEM process flow: Re Thinks cosmetics Thinks H&g m-app F2C- IECDS Extracts Orders Info F2C Order List View Order Create Bag & # Affixes on Bag Bag Hits OUT BOUND Pick / QC Close bag Print INV Assign RUNNER Manager Validates Bag Confirms RTS & seals neck with OTL View RTS Order Manager Assigns Delivery to Runner After assigns confirms DRS DRS avail on Runner m-app Runner collects Orders Plans route SYS/SCH/MAN Stacks in to Field bag Enters DRS & Odometer details on register SEC validates Runners moves Out for Delivery Field Operations DELIVERY Updates app & Take rating Cancel Order & Update SYS (Uncheck complete SKU) Y PD UD F2C Settlement Reconciliation OFD Vs. DLY / UD DLY vs. Collection UD vs. STOCK STOCK vs. IW Clicks on Return M-app shows list of SKU SYS revises Price SYS shows revised Price SYS triggers revised Price SMS Details updated in OMS F2C SUPPORT DESK Pro-active Re-active Customer SupportPerformance & Gap Exceptions & Incident mgm.. Helpdesk / General support Uncheck return SKU Reports N Y OFC Close Bag enabled for add / delete OFC Close Bag Disabled Triggers SMS Triggers SMS A RA Triggers SMS Triggers URN for PAID Order Triggers SMS / MAIL Manual DRS
  6. 6. IECDS FUNCTIONALITY at a glance:  ORDER FULFILMENT CENTER  VIEW ASSIGNED ORDER  CREATE BAG  CREATE BAG #  AFFIX BAG # ON BAG  PICKING / QC  CLOSE BAG  PRINT INV  OUTBOUND  VIEW CLOSED BAG ORDER SUMMARY  VALIDATION  OTL (ONE TIME LOCK)  RTS  VIEW RTS ORDERS  ASSIGN RUNNER  DRS / OFD  FIELD OPERATIONS  VIEW ASSIGNED ORDER  PLAN ROUTE  SECURITY FORMALITIES  DELIVERY  EXCEPTION MANAGEMENT  Feedback / Customer RATING  SETTELEMNT  SECURITY FORMALITIES  RECONCILIATION (OFD Vs. DLY) & (DLY Vs. COLLECTION) – UD Vs. STOCK  RECONCILIATION RETURNS (UD Vs. STOCK)  RETURNS INWARD  UPDATE SYSTEM  SUPPORTIVE OPERATIONS  PROACTIVE  REACTIVE  HELPDESK / CUSTOMER SERVICE  REPORTS 8. PROCESS FLOW of ORDER FULFILMENT CENTER FUNCTIONALITY from OPERATIONS PRESPECTIVE a. Order retrieved b. Runner Creates Bag c. System triggers Bag number d. Runner picks and affixes Pre printed sticker number on Bag e. Picks the products as per the Order list f. Close Bag – Once picking process completes, g. Print INV h. System triggers status description SMS to customer along with INV price i. OFC DATA pushed to Outbound Dashboard
  7. 7. 8.1.Figure 1 - Over view Diagram of ORDER FULFILMENT Operations process flow: 9. PROCESS FLOW of OUTBOUND FUNCTIONALITY from OPERATIONS PRESPECTIVE a. OFC Bags DATA hits to Outbound Dashboard b. Manager / Respective stakeholder validates ORDER vs. PHYSICAL BAG (SHIPMENT) c. Seals Bag neck with OTL and Confirms RTS – If tallied d. If not, Rejects the Bag e. The System triggers message to OFC also enables CLOSE BAG ICON of OFC for ADD or DELETE f. Such scenario OFC rechecks and fulfilles and resend the Bag to Outbound g. Once the RTS is confirmed, the System triggers RTS Status SMS to Customer h. RTS DATA flows to ASSIGN RUNNER DASHBOARD i. Manage / Respective stackholder Assigns RUNNER for selected RTS ORDERS j. Manage / Respective stackholder Confirms DRS k. System triggers URN SMS to PAID customer l. System triggers staus SMS to customer m. Reassigns Runner, If changes in assiged runner n. Once DRS executed, above option can not be functionedl o. Runner Logs in M-App for DRS views p. Stacks the Orders in to his field bag as per Delivery sequence q. Updates security register r. Security validates the details and acknowledges - If matches s. If not reports to Manger and regisers in Incident registerS t. Runner starts for Delivery IECDS Retrieves DATA OFC VIEW ORDER INFO Creates Bag / # (IS) Picking Close Bag OUTBOUND SYSTEM MMS/OMS Print INV DATA Pushed to OUTBOUND DASHBOARD SUPPORT DESK Reports Triggers SMS
  8. 8. 9.1.Figure 1 - Over view Diagram of OUTBOUND Operations process flow: Validate Bag vs. Order DATA flows to Assign RUNNER Closed Bag View Bag returned to OFC for correction OUTBOUND SYSTEM N Y Seals neck OTL IECDS ------ OFC Conform RTS Dashboard shows list of Order RTS Runner assigned DRS executed (OFD) DRS M-app Manual DRS Update SEC register Runner moves for DLY SUPPORT DESK Reports A RA URN Triggered to Customer Triggers SMS Triggers OFD SMS Plans Route
  9. 9. Runner confirms Return SKU 10. PROCESS FLOW of FIELD OPERATIONS FUNCTIONALITY from OPERATIONS PRESPECTIVE a. M-App assist Route plan as per Distance as well Scheduled time of Delivery b. However M-App also allows the user to plan the route on his own c. Runner reports to customer door and intimates his arrival d. Does delivery after taking note of URN if it’s a PAID ORDER e. Does delivery after collecting Cash if it’s a COD Order f. Does delivery after accepting Card payment if it’s a COD Order g. ConfirmsDELIVERED icon – If delivered h. Rating icon visible i. Runner requests customer to rate the service experince j. Runner clicks on transmit icon k. Live status updated l. System triggers STATUS SMS and greetings msg for their rating and shopping m. Appended process to be adheared, If it’s a Partial delivery – any reason the customer returns partial products in given Orders i. Clicks on Partial delivery ii. Return link will be visible iii. Clicks on return link iv. System displays list of SKU v. Runner unchecks the SKU which the customer returns vi. A validation pop-up triggers vii. Runner has to confirm the unchecked SKU and physical SKU are same viii. System accepts ix. System revises price and shows to be collectable amount x. Runner proceeds collection xi. Runner collects amount as per the revised price – If COD xii. If PAID ORDER –due will be credited over the online banking only xiii. Runner confirms and clicks on Delivered icon xiv. Rating icon visible xv. Runner requests customer to rate the service xvi. Runner clicks on Transmit icon xvii. System triggers STATUS SMS and greetings msg for their rating and shopping xviii. Runner moves to next delivery 10.1. Figure 1 - Over view Diagram of FIELD OPERATIONS process flow: SYS revises Price & Shows If COD Collects Cash/Card SYS triggers SMS for Credit note If PAID Order Due ll be paid by OL Clicks on DLY icon M-APP DRS VIEW & Route assist OUTBOUND SYS `Field Operations `Reports customer Door DELIVERY N Y Cancel Order & Update SYS (Uncheck complete SKU) IECDS ------ OFC PD Clicks on PDSYS shows SKU list Clicks on Return Link Rating Icon visible Customer Rates service Runner Transmit status Status flows to SYS Triggers DLY SMS Validation POP-UP triggers Uncheck return SKU 1 2 SUPPORT DESK Reports
  10. 10. SEC notes Odometer M-APP DRS VIEW & Route assist 11. PROCESS FLOW of SETTELMENT from OPERATIONS PRESPECTIVE a. Settlement Dashboard has complete info of field activity b. The manager can view runner wise OFD I PAID I COD I DLY I PDLY I UD I OC I Cash collection I card collection I No of return I Item I Price c. Runner reports back to OFC and settles-off d. Runner reports to SECURITY e. SECURITY makes a note of ODOMETER f. Checks NDR / UDL or RETURN Orders g. Makes entry on the respective register h. Manager receives return items and does inward and re-queues in stock i. Manager validates, collects COD, return items and updates inward system and IECDS j. Reconciliation completes with ZERO pending k. Makes money remittance l. Prepares Ops and Finance reports m. If any exceptions, Manager and runner has to sort-out n. Escalation can be posted to next higher personal if the exception beyond their salvation 12. PROCESS FLOW of SUPPORT TEAM from OPERATIONS PRESPECTIVE a. Support team has been divided in to 3 sub division – as per below., b. Proactive  Performance analysis  Gap analysis c. Reactive  Exception  Incident d. Helpdesk  Customer service  Technical support e. Proactive user can view every action of F2c leg to leg f. Reactive user will be triggered exceptions and incidents g. Helpdesk user responses customers enquires as such technical assistance or general info and support OUTBOUND SYS `Field Operations IECDS ------ OFC RUNNER reports to OFC Checks & Enters Returns Reports @ Manager Manager validates Collects COD & updates Collects returns & updates N Y Reconciliation completed SUPPORT DESK Reports @ SEC Reports Triggers DLY SMS Triggers CREDIT NOTE mail

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