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Bare operational plan


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Bare operational plan

  1. 1. BARE Operations Introduction The success of BARE is hinged on how we as a company functions; how we are able to manage our supply chain and fulfillment capabilities. For that reason, BARE Operations is a very critical component. Our day-to-day operations are all customercentric and we operate with the ideology of “How can we serve the customer best”. Our website is the first direct point of contact with our customer and it designed to give them an easy and enjoyable experience to shop. Operations Strategy BARE Operational Objectives - To create truly unique merchandise that is innovatively displayed and delivered to our customers in a timely and accurate fashion. Always striving for superior results. - To establish guidelines for day-to-day business that support our business goals and lead to levels of high efficiency that translate into great customer service. - To effectively support the strategies of each and every BARE department. - To address every activity in the supply chain to produce focus, quality, correctness, flexibility, elimination of delays, and responsiveness. Business Location As an e-commerce based company our primary location of BARE is the Internet. Our primary physical location (the home office, call center, and center of distribution) will be located in the Flat iron District in New York, NY. BARE will lease this office space at $2300 per month. Additionally, our intended brick and mortar location will be located in the metropolitan area of New York City. Our hours of business are 8am- 5pm EST. Monday through Friday. One day a week each employee must work the late shift. Production and operating procedures Ordering and Receiving Merchandise We place first orders face to face with representatives at our suppliers and manufactures because we wish to establish strong relationships with our vendors; this possible because our suppliers and manufacturers are within distance of our offices to visit regularly. Our first shipment of spring and resort collections will be the largest and subsequent orders during the season will be done as needed to replenish inventory on our best sellers. Changes is this system will be adjusted as business needs requires, because BARE is
  2. 2. constantly improving to find the best practices for our company. Final products will be delivered to the BARE offices in New York. All purchases and orders will be documented and be the responsibility of BARE accounts payable. Paying Suppliers BARE will be billed by suppliers and have 30 days to fulfill payment. It is the policy of BARE to pay with in 10 days of receipt of bill. Our grace period is the following 5 days after the evening of the 10th day. Orders will not be made without necessary funds available or pending receipts to be paid with in five days of placing and order with a supplier. Inventory management procedures It is vital as an e-commerce business for BARE to maintain stock levels and proper inventory management. Inventory management procedures have been established to ensure accuracy, speed, efficiency and consistency of processes. The following lists each procedure critical to our daily operations and the steps to accomplish them. BARE will stock our own inventory and undertake the management of said merchandise which will be stored in the BARE office. We manage our own inventory, because it gives us more leverage and control. Leading ecommerce sites like Zappos and Amazon have shown in-house inventory management is the best practice. We use a manual-entry inventory control system which is a cost effective approach for BARE, a small start-up company. Increase of demand will determine purchase of enterprise resource planning software to manage business transactions and inventory. Receipt of Goods Step 1: Operations department will compile expected delivery list with items to be received and date of receipt based upon orders placed with manufacturers. Step 2: On shipment receipt day number of boxes received will be notated. Step 3: Items of each box will be counted and then accounted for by matching the expected delivery list to ensure each style, size, and color has been sent and there are no discrepancies. Step 4: The data for each item will be manually input into inventory management spreadsheets. Packing and Shipping of Customer Orders
  3. 3. All orders are shipped within 48 hours of placing them. After the customer places order they will be sent an order confirmation to the email address they provide. Once order is shipped they will also be provided with UPS tracking number. BARE will also be able to track shipments and will be notified when purchases are delivered. Step 1: BARE will receive orders through website and every two hours order list will be generated to process order requests of customers. Customer address labels will also be printed. Step 2: After confirming orders on order list, items will be extracted from stock on hand to be processed. Step 3: Inventory management spreadsheets will be updated to show reduction in inventory from customer purchase. Step 4: Items will be packaged in BARE packaging materials and then checked off on order list and placed in “To Be Shipped” area in BARE offices Step 5: Upon pick up by UPS, items will be marked off as “Shipped” on hourly order list and notifications via email will be sent to customers. Step 6: When it arrives to the customer, we will receive UPS notification and that will be shown in our records. Processing Returned Items Procedure Step 1: Items that are returned to BARE will be received with BARE return form that was sent with customer order (return form shows: customer name, date of purchase, shipping address, whether it is an full refund, partial return, or exchange) Step 2: The employee processing the return will first update the returns list and indicate whether it is a full return/ partial return/ or exchange. A copy of this list will be given to BARE finance department Step 3: The customer return will be updated in the inventory management system and refund will be processed same day as return was received. Step 4: If there is to be an exchange, then procedure for packing and shipping customer orders will be followed Quality Control procedures BARE headquarters is located within close proximity of our manufacturers and suppliers; everyone is located in New York. This is advantageous because we are able to physically monitor the production of our swimwear and make changes if necessary. We are
  4. 4. involved on each part of the product’s life cycle until delivery to the customer, and even then we work to influence the products life by giving care instructions and ways to minimize waste. The BARE Creative Director /Brand Manager will work closely with suppliers and manufactures to ensure the optimum quality of construction and fabrication. Proximity also reduces lead-time to our distribution center and allows us to be more efficient at delivering goods to our customers. Customer service procedures Customer satisfaction is key to this organization. We are a customer service oriented company and customers are at the core of each and every of our business activities. Adjustments will be made to procedures if it is the best interest of the customer. Staff Development BARE is a startup company with the six founding members currently the only employees. As policies are established each member will be fully briefed and tested. All department leaders will have their MBA and will be required as time permits to take small training sessions to stay aware of changes or new developments in their sector Scope of BARE Operations The operations handled in-house by the BARE staff works for our business model. It matches our current level of capabilities. The BARE head office controls all matters concerning business strategy/ planning, and creative direction. This includes the following: inventory management, initial design of merchandise, trend research, marketing and promotions, operational planning, and financial management. We currently will outsource the following until we are able to hire staff within the company to oversee them or expand our business: BARE website management and creation, legal services, production and manufacturing. Shipping will be handled by United Postal Service.