Noopur sip report

Mahatma Gandhi Mission’s
Institute of Management Studies & Research
MGM Educational Campus, Sector 18, Kamothe, Navi Mumbai – 410 209
PROJECT REPORT
ON
STUDY OF OPERATIONAL PROCESSES AT HYPERCITY
SUBMITTED TO
MGM’S INSTITUTE OF MANAGEMENT STUDIES &
RESEARCH, NAVI MUMBAI
BY
NOOPUR MAHESH KOLI
Roll No. 24
IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY
OF MUMBAI
May-June 2015-16

DECLARATION
I, Ms. NoopurMahesh Koli hereby declare that this project reportis the record of
authentic work carried outby me during the period from 4th May to 2nd July 2015 and has
notbeensubmitted to any otherUniversity orInstitute forthe award ofanydegree/
diplomaetc.
Signature
Name ofthe student
Date

CERTIFICATE
This is to certify that Ms. Noopur Mahesh Koli of MGM’s
Institute of ManagementStudies & Researchhas successfullycompleted
the project work titled Study of Operational Processes of Hypercity in
partial fulfillment of requirement for the completion of MMS as
prescribed by the University of Mumbai.
This project report is the record of authentic work carried out by
her during the period from 1st May to 30th
June 2015.
She has worked under my guidance.
Signature
Name
ProjectGuide (Internal)
Date :
Counter signed by
Signature
Name
Director
Date :

CERTIFICATE FROM THE COMPANY/ORGANISATION

Acknowledgement
The project of this nature is a learning task which gave me an exposure to understand the
operations of the retail sector in acute manners. Although this project report is being brought by
me, it bears an imprint of guidance and cooperation of many individuals. I take this
responsibility to express gratitude to all those who helped me in various ways for the successful
completion of my project report.
It is a privilege for me to have been associated with Prof.Monika Khanna, my mentor, for the
unflinching support and guidance throughout the project. I express my deep sense of gratitude
for her constant encouragement and patience throughout this work.
I am thankful to Prof. Rashmi Belval for providing me this opportunity to do this project & for
the successful completion of my summer internship.
In the successful & trouble free completion of my project titled “Study of Operational Processes
of Hypercity”, I am grateful to HyperCITY Retail India Limited and all the staff for their
valuable time, guidance and support.
I would also like to thank Mrs. Manasi HR Manager of Hyper CITY Vashi Store who permitted
me to work there as an intern. I am grateful to my Mentor Mr.Kunal General Manager of Hyper
City Vashi Store for giving me his valuable time out of his busy schedule and who have been a
constant encouragement. I extend my sincere thanks to Mr. Vinay Team Leader Receiving
Department who provided me lot of information regarding operations of the store, many of
which I have used in this report and without which this project could not have been completed.
I take this opportunity to thank my classmates for their company during the summer internship
and for the useful discussions I had with them.
I would be failing in my duty if I do not mention my family for providing moral support and
their blessings.

Chapter Scheme
Chapter No Title Page No.
1. Introduction 1
2. Research Methodology 15
3. Operational Processes of
Hypercity
24
4. Data Processing And
Analysis
48
5. Findings 58
6. Conclusion 60
7. Recommendation 62

List of Tables
Table No. Title Page No.
1.3.1 Company Profile 06
1.3.2 Hypercity Brands 11
2.1.1 Research Design 17

List of Graphs
Graph No. Title Page
4.1 Frequency of operational
processes
50
4.2 Occurrences of problems in
MIS
56
4.3 Effect on sales due to
introduction of MIS
57

List ofCharts
Chart No Title Page
3.1 Purchase Order Receiving
Process
35
4.1 Operational activity Important
for growth
49
4.2 Best process for managing
damage
51
4.3 Impact on sales 52
4.4 Best process stock receiving
process
53
4.5 Inspection for conformance 54
4.6 RTV of non-conforming
goods
54
4.7 Accurateness of MIS 55

List ofFigures
Figure No Title Page
3.1.1 Hypercity flash Ticket 27
3.1.2 Format of Purchase Order 29
3.1.3 Format of Invoice 31
3.1.4 DSD Network 32
3.4.3 Handheld Scanners 46

List ofAbbreviations
Chapter No. Abbreviations Page
1 MIS : Management Information System 14
3 SST : Stock Service Team 25
3 SKU : Stock Keeping Unit 25
3 EAN : European Article Number 25
3 UPC : Universal Product Code 25
3 DC : Distribution Center 26
3 SEL : Self-Edge Label 28
3 PO : Purchase Order 28
3 SAV : Stock Adjustment Voucher 28
3 RTV : Return to Vendor 28
3 FMV : Fair Market Value 31
3 DSD : Direct Store Delivery 32
3 ADSD : Auto Direct Store Delivery 32
3 PICS : Perpetual Inventory Count System 37
3 FMR : Floor Movement Register 37
3 OOS : Out of Stock 38
3 DCMS : Distribution Center Management System 42
3 WMS : Warehouse Management System 42
3 MMS : Merchandise Management System 44

Executive Summary
Without practical training, management education is meaningless so long with the theory,
practical training is provided to the management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge relating to
the concepts and practices of the assigned topics in the organization. The summer training is an
integral part of the course curriculum of MMS In this the student is in a position to analyze the
integral working of an organization with mature eyes and understand the dynamics in a much
better manner.
The project entitled “Study of Operational Processes of Hypercity” carried out, was the result of
extensive study of the HyperCity store situated atVashi, Navi Mumbai. My subject of study was
analyzing the role of the operational department for growth, the processes, their impact on the
sales and the implementation of the MIS system for these processes in the store.
The project provides an opportunity to know about in and out of the functioning of the retail
store which serves both as the frontline of operations and the revenue earner for the organization
engaged in the business of organized retailing. The retail store which serves as the point of
interaction and transaction between the organization and the customers is the biggest stakeholder
in determining the level of success of the business. Operations set that regulate the entire
workings of a store thus have a pivotal role. Thus while being engaged in a project work in a
retailing organization, to develop knowledge about the retail store operations provides a kind of
completeness to the task of understanding the trade. I had learned a lot about the operational
activities occurring in the retail stores to manage their retail store.

I. Introduction
1.1 Background of the study
The project undertaken is on “STUDY OF OPERATIONAL PROCESS OF
HYPERCITY”. It describes about how the store manages its operational processes and the
various steps that are required in the management of this process.
The study gives an idea about fundamentals of the stock receiving process of the retail
sector. It also illustrates the daily working procedure followed by the stock receiving department
and the challenges faced by them.
The study also describes about the various operational activities which helps the store to
provide best service to the customers, the role of the management information system in
controlling the stocks, managing the inventory and generating sales reports.
1.2 Backgroundof the Topic
Retail
Retail involves the sale of goods from a single point (malls, markets, department stores etc)
directly to the consumer in small quantities for his end use. In a layman’s language, retailing is
about transaction of goods between the seller and the end user as a single unit in small quantities
to satisfy the needs of the individual for his direct consumption.
Retail is the sale of goods and services from individuals or businesses to the end user.
Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery.
The retail sector due to its increasing trend gave rise to supermarkets, hypermarkets and
departmental stores.
Hypermarket is a superstore combining a supermarket and a department store. The
result is an expansive retail facility carrying a wide range of products under one roof, including
full grocery lines and general merchandise. Hypermarkets allow customers to satisfy all their
routine shopping needs in one trip.
Growth trends of Indian retail sector
Retail sector is the booming sector in the Indian economy. It is on the threshold of a big
revolution after IT sector. The retail boom faces a strong competition from millions of stores

which are easily accessible & approachable and provides services like free home delivery and
goods at credit. But buying from supermarkets, hypermarkets and departmental stores like
Subhiksha, Marks & Spencer etc. gives a different feeling and environment of pick and choose
from variety of products and brands.
A number of retail giants such as Reliance retail, D-mart, Wal-Mart are exploring the market.
The retail sector of Indian economy is going through the phase of tremendous transformation.
The sector is organised into two; organised retail sector and unorganised retail sector with the
latter holding the large share of the retail market. At present the organized retail sector is
catching up very fast in India.
Introduction to Operation Management
The business function responsible for planning, coordinating & controlling the resources needed
to produce a company’s product or services.It can be defined as the management of the
conversion process, which converts the inputs such as land, labour, capital into outputs i.e.
product and services.The concept of operations management is related to the optimum utilization
of the resources in the best possible way.
Operations also refer to the production of goods and services, the set of value-added activities
that transform inputs into many outputs. Fundamentally, these value-adding creative activities
should be aligned with market opportunity for optimal enterprise performance.
Operations as a Transformation Process
Operations management is about the way organizations produce goods and services. Everything
you wear, eat, sit on, use, read or knock about on the sports field comes to you courtesy of the
operations managers who organized its production. Every book you borrow from the library,
every treatment you receive at the hospital, every service you expect in the shops and every
lecture you attend at university all have been produced.
This definition reflects the essential nature of Operations Management; it is a central activity in
organizing things. Another way of looking at an operation is to consider it as a transformation
process.

Operations are a transformation process; they convert a set of resources (INPUTS) into services
and goods (OUTPUTS). These resources may be raw materials, information, or the customer
itself.
Inputs
Some inputs are used up in the process of creating goods or services; others play a part
in the creation process but are not used up. To distinguish between these, input resources
are usually classified as:
 Transformed resources –those that are transformed in some way by the operation to
produce the goods or services that are its outputs
 Transforming resources –those that are used to perform the transformation process.
Inputs include different types of both transformed and transforming resources.
Three types of resource that may be transformed in operations are:
 materials –the physical inputs to the process
 information- that is being processed or used in the process
 customers –the people who are transformed in some way
The two types of transforming resource are:
 staff –the people involved directly in the transformation process or supporting it
 Facilities –land, buildings, machines and equipment.
The staff involved in the transformation process may include both people who are
directly employed by the organization and those contracted to supply services to it. They are
sometimes described as ‘labour’.
The facilities of an organization–including buildings, machinery and equipment; are sometimes
referred to as ‘capital’. Operations vary greatly in the mix of labourand capital that make up
their inputs. Highly automated operations depend largely on capital; others rely mainly on
labour.
Transformation processes
A transformation process is any activity or group of activities that takes one or more
inputs, transforms and adds value to them, and provides outputs for customers or clients.
Where the inputs are raw materials, it is relatively easy to identify the transformation

involved, as when milk is transformed into cheese and butter. Where the inputs are
information or people, the nature of the transformation may be less obvious.
Transformation processes include:
 changes in the physical characteristics of materials or customers
 changes in the location of materials, information or customers
 changes in the ownership of materials or information
 storage or accommodation of materials, information or customers
 changes in the purpose or form of information
 Changes in the physiological or psychological state of customers.
Outputs
Many transformation processes produce both goods and services. For example, a restaurant
provides a service, but also produces goods such as food and drinks.
Transformation processes may result in some undesirable outputs (such as nuclear waste in the
example above) as well as the goods and services they are designed to deliver. An
important aspect of operations management in some organizations is minimizing the
environmental impact of waste over the entire life cycle of their products, up to the point of final
disposal.
Extending the process-If we add a few more parts to the transformation process, we can see the
key elements that operations managers need to consider. An operation is about designing
services, products and delivery systems;
1. Managing and controlling the operations system.
2. Finding ways to improve operations.

1.3 Company Profile
HyperCITY is one of the best retail shopping stores, supermarket and super store in
India.Founded in 2006, HyperCity Retail (India) Ltd. is part of the K. Raheja Corp. Group, a
leader in the Indian retail sector. K. Raheja Corp helped create modern retailing in India with the
Shopper's Stop, Inorbit Mall and Crossword chains in addition to its successes in realty and
hospitality.
Type Hypermarket
Industry Retailing
Founded 2006
Number of Locations 12
Area Served India
Parent K. Raheja Corp
Website www.hypercityindia.com/
HyperCITY offers its customers a dominating assortment of quality products at great value in a
large, modern and exciting format. It also offers other value added services like consumer
finance, ATM facility, telecom services, pharmacy, Bakery and Restaurants etc under one roof.
Table No. 1.3.1: Company Profile

Hyper CITY launched its first store in Malad, Mumbai, which is spread over 1, 20,000 sq ft.
Today, HyperCITY has accomplished a total of 12 stores since inception and have marked its
presence in cities like Mumbai, Hyderabad, Bangalore, Bhopal, Ludhiana, Amritsar and Jaipur. It
offers over 44,000 products sourced from both local & global markets to choose from & boasts
of quality, distinctive, dominant assortment at great value. HyperCITY promises convenience of
everything under one roof & International shopping ambience that rivals the best in the world.
There's more to discover
HyperCITY provides a truly international shopping experience, where customers can shop in
comfort in a large, modern, & exciting environment. It offers a wide and contemporary range of
innovative products, sourced from both local and international markets.
Our Vision & Mission
To be an integral part of customer lives, by offering them high quality shopping experience
through great products at ever better prices.
Partnering For Success
HyperCITY features the best global design, infrastructure and safety features by partnering with
the best talent from around the world.
Caring For the Community
HyperCITY’s commitment to the environment extends beyond energy-saving infrastructure and
design.
Products provided by Hypercity:
Hypercity provides an international shopping experience, where customers can shop in comfort
in a large, modern, & exciting environment. With the widest range of products sourced from
around the world, Hypercity is India's favourite Hypermarket. To make shopping easy and
comfortable Hypercity Segregates its Store in 8 sections. Those are,
1) Foods & Grocery:
It contains vegetables, fruits, packet food, staples, meat & fish, beverages, snacks, ready to make
products, spices etc.
2) Health & Beauty:
It contains fragrances, hair care, skin care, baby care, cosmetics, personal care, dental care etc.
3) Home &Furniture:

It contains, home ware, home linen, home décor, furniture, stationery, toiletries, cleaning needs
etc.
4) Fashion:
It contains all apparels like men and women clothing, baby and kids ware, jewellery, men and
women accessories, foot ware, etc.
5) Electronics:
It contains electronic appliances like, cooler, iron, fans, music players, air conditions, food
makers, pen drive, printers etc.
6) Toys:
It contains soft toys, remote control cars and gadgets, brain boosting games, dolls, beach toys,
puzzles and board games etc.
7) Sports & fitness:
It contains health proteins, gym equipment, cycles, swimming accessories, sports accessories,
indoor games etc.
Services provided by HyperCity
Hyper CITY Extended Warranty :
 Our electronics come with a unique feature.
 Peace of mind! Pay a nominal fee.
 We'll cover mechanical & electrical breakdown.
 Get the benefit of genuine parts.
 Free parts and no labour charge.
 Hassle free repairs.
 Inflation proof.
 Free replacement if not repaired.
Accepts all International Cards:
Hyper CITY has tied up with ICICI bank for swiping international cards of foreign nationals on
separate EDC machines. The following are the benefits of the facility to these customers:
 The customer can choose to make payment in home or foreign currency.

 The conversion from foreign currency to INR will be at the current prevailing rate.
 Master/Visa will not charge any extra charges to the customer.
 The customer gets a bill for the exact amount from the card issuing bank, in home currency,
on a charge slip.
Home Delivery:
Home Delivery: Hyper CITY is committed to extending high standards of customer service even
beyond shopping through our Home delivery service. Our aim is to delight our customers
through timely delivery of goods, every time.
Hyper CITY's home delivery service is aimed at setting the industry benchmark. The mantra of
'Delivery on Time-Every Time' is what underlines the service. Also to ensure that the service
standards are raised and not compromised Hyper CITY has decided to manage the process in-
house.
Home Delivery Team:
Home delivery are handled by a highly capable, friendly and well groomed team comprising of
delivery people, installers, customer service associates etc. who would be adapt in handling
installation of goods ranging from furniture to electronics and health equipment etc.
Exchange Policy
We are pleased to offer exchange within 14 days of your purchase on production of the original
cash memo. The product should be unused, undamaged, in the original packaging and in saleable
condition. Jewelry, watches, cosmetics, mobile phones, MP3 players, innerwear, swimwear and
any altered merchandise will not be exchanged. All appliances & electronics items will be
exchanged subject to the warranty & guarantee terms of the manufacturer, with a valid receipt.
Furniture items will be exchanged or refunded in any circumstances unless it has a
manufacturing defect in the first year of its purchase and if it is not repairable by us once the
furniture has been assembled at the customer's address.
Repairs & Warranty
Comprehensive after-sales services are provided through an exclusive Service Centre backup
facility, on products that have a guarantee or service warranty.
Titan Eye

Titan Eye offers wide range of stylish and contemporary eyewear through exclusive optical
stores across the country. They provide zero-error eye testing, international designs and style
trends, wide range of distinctive, attractive frames, scratch-resistant lenses in a friendly
environment with specially trained retail & clinic staff at selected Hyper CITY stores.
HYPER CITY BRANDS
HYPER CITY has a wide array of exclusive brands across all categories. These brands ensure
increased value to our customers through superior product offerings, quality and uniqueness at
great prices.
FOOD & GROCERY
Everyday Everyday is dedicated to bring wholesome food to your family at
great prices. Our products are packed under hygienic conditions
and are priced to offer real value, every day. Hyper CITY
encompasses everyday foods like cereals, spices, flour, pulses,
dry fruits and other products
Fresh Basket Every Fresh Basket product guarantees freshness and quality on a
daily basis, with all the goodness locked in. Fresh Basket offers
the freshest selection of meat, seafood, fresh produce, freshly
baked breads, specialty bread, etc.
Waitrose Waitrose Voted the top supermarket chain in UK. Exclusively
available at Hyper CITY. Come and taste the best of teas, coffees,
juices, jams and more.
HOME
EBANO Discover stylish essentials for your home with Hyper CITY’s
exclusive brand ebano. ebano presents a selection of basic
products with a modern appeal. Bringing your home to life with

contemporary designs, vibrant colours, great value & is present
across Utensils, Cutlery, Bakeware, Crockery, Glassware,
Pots'n'pans, Implements, Bed linen, Towels, Cushions, Table
linen, pillows and more.
AVORIO Make your home a more luxurious place with Avorio, the
exclusive brand from Hyper CITY. AVORIO offers exclusive,
versatile and classic designs to enhance your lifestyle. Avorio
spans Implements, Pots'n'pans, Glassware, Cutlery, Crockery,
Towels, Bed linen, Table linen, Duvets & quilts and more.
FASHION
JOOJOOBS Discover Fashion for your little ones!! The Joojoobs range of
comfortable garments for infants includes designer infant wear
and infant western wear. The range combines the finest quality
fabrics & vivid colors to create a high value range of infant wear.
CITYstyle CITY Style Offers the latest trends in clothing in the market, at
prices that are affordable.
RIVERinc A range of quality denims for men, ladies and kids. The range
comprises of basic denims, fashion denims, tees, cargos, denim
shirts and jackets.
APPLIANCES
TECHNIX Our Technix range of appliances will be available across
microwaves, cook-tops and mixer-grinders.

SPORTS
RALEIGH The Raleigh Series of bicycles are available exclusively at Hyper
CITY. Raleigh is one of the world’s biggest brands in Bicycles.
Raleigh bicycles are simple, elegant, efficient and fun. They are
designed with care and fitted with latest technology. Raleigh has
the following varieties in bicycles - Mountain Sport, Platinum,
Juvenile, Toy cycles, etc.
MAXIT The Maxit line of sports equipment and apparels is available
exclusively at Hyper CITY. Maxit stands for - Maximum Range,
i.e. it offers a superior line up of sports gear at great value. Maxit
is available across sports categories like cricket, football,
basketball, volleyball, boxing and baseball.
Table No. 1.3.2: Hypercity Brands

AWARDS & RECOGNITIONS
International Awards
 HyperCITY, Mumbai won The Award of Merit for Large Format Specialty Store at the
United States International Design Awards in New York on 15th January, 2007. This is
the first time that an Indian Company has received an award like this. This was the 36th
awards function for the Institute of Store Planners/VM+SD International Store Design,
New York.
 HyperCITY was voted as India's top retail store by ‘Retail Week’, a leading U.K.
magazine revered by retailersworld wide. It was voted as the ‘100 Shops You Must
Visit’, across the world and was featured amongst internationally renowned stores such
as Bloomingdales New York, Selfridges U.K, Louis Vuitton Paris and Carrefour
Shanghai. The special report carried weightage for innovation and creativity in retail, as
well as recognizing retail excellence. The report was based on a survey carried out by
‘Retail Week’ amongst key players in the retail industry consisting of businessmen,
analysts, retail consultants, editors and top shoppers around the globe.
Domestic Awards
 Coca Cola Golden Spoon Awards 2009 - Images award for excellence in food retailing
awarded Gourmet city as "Most Admired Food Retailer of the Year" & "Innovative
Retail Concept".
 Star Retailer Awards awarded Gourmet city "Debutant Retailer of the Year 2008".
 The Bold 100 - IDG India CIO magazine has recognized Shoppers Stop and
HyperCITY as a recipient of 2008 CIO 100 Award. The annual award program
recognizes those executives and organizations those are playing not just to survive, but
to win and embrace great risk for the sake of great reward.
 Most Admired Retailer of the Year for Retail Design & Visual Merchandising - Images
India Retail Forum, 2007.
 Star Retailer - Value Retailer of the Year 2007.
 Asia Retail Congress - Reid & Taylor Retailer of The Year (Hypermarket)

1.4 Statement of problem
The present situation in the market scenario is “the survival of the fittest”. Thus in orderto
survive in the market for a longer time the retail store and its people must concentrate on the
operational processes carried out in the store on daily basis.
This study helps to determine the importance that must be given to supply chain, ordering,
purchasing, managing inventory, refilling and merchandising the store in order to have growth in
sales, to study the Management information system, to determine the acceptance of the system
by the employees and improve the understanding of the employees towards it.
1.5 Need of Study
The findings of the study will benefit the operations area of retail sector and the people related to
it. It would advantageous as the study covers the practises followed by the retail store, their
comparison to find out the best processes and its benefits. It will also prove beneficial to identify
to identify the processes that will prove preeminent to be followed in order to increase the sales
of the store. It will help understand the significance of the receiving process in the retail sector
which is often overlooked.
The study will benefit the retail sector to understand the need of an effective Management
information system and other technologies to operate the store.
1.6 Scope of the Study
Many factors contribute to a retailer store’s overall performance. Literature indicates that
retailperformance should be judged on multiple dimensions: based on customer perception,
based on operational efficiency, and based on financial performance.
The present research study is limited to performance evaluation of Hypercity based on
operational processes & their efficiency, examining the current practices of the operations
department of Hypercity and comparing the best operational processes.
This study will also be useful as follows:

 The study is limited to the employees of Hypercity,Vashi. Therefore, targeted employees
are the one who use the operational processes on daily basis.
 This study will be a learning device for operation student.
 It would be useful to learn the various retail operational departments and their processes.
 The study will show how MIS proves useful in managing the inventory, for stock
receiving, sales analysis and creating sales & forecaster reports.
1.7 Objectives of the study
 To understand the role of operational department in the growth of HyperCity.
 To study the various operational processes used to manage the store.
 To study the working of the stock receiving department of Hypercity
 To study the role of MIS in operational processes.

Chapter 2
Research Methodology

II. Research Methodology
Research methodology is a way, to systematically solve the research problem. Research in
common place refers to a search of knowledge. Research is an original contribution to the
existing state of knowledge making for its advancements.
 This project requires a detailed understanding of the concept – “Operation
Management”. Therefore, firstly we need to have a clear idea of what are the
operational departments, how they are managed in Hyper city, what is the operating
process in which store manages its operations.
 The operation management involves managing inventories, receivable and payable
and managing the information of inventories. Therefore one also needs to have a
sound knowledge about purchase order, invoice and the management information
system.
And, in the end, suggestions and recommendations on ways for better management and control
of operations are provided.
2.1 Research design
A research design is purely and simply a plan for a study that guides the collection and analysis
of data.
A good research design has the characteristics like problem definition, specific method of data
collection and analysis. Time required for research project and estimate of expenses to be
incurred. It mainly calls for decisions on research approaches.
The research will be descriptive in nature and survey is used as data collection technique will be
conducted on already existing employees. Questionnaire was used as a data gathering tool.
Descriptive research
Descriptive research refers to research that provides an accurate portrayal of characteristics of a
particular individual, situation, or group. Descriptive research is also known as statistical
research.
These studies are a means of discovering new meaning, describing what exists, determining the
frequency with which something occurs, and categorizing information.
In short descriptive research deals with everything that can be counted and studied, which has an
impact of the lives of the people it deals with.

Exploratory Research
Exploratory research is a type of research conducted for a problem that has not been clearly
defined. Exploratory research helps determine the best research design, data collection method
and selection of subjects.
The results of exploratory research are not usually useful for decision-making by themselves, but
they can provide significant insight into a given situation
Exploratory research can be quite informal, relying on secondary research such as reviewing
available literature and/or data, or qualitative approaches such as informal discussions with
consumers, employees, management or competitors, and more formal approaches through in-
depth interviews, focus groups, projective methods, case studies or pilot studies.
Research Design
Research Type Exploratory, Descriptive
Venue HyperCity,Vashi
Research Instrument Questionnaire, Observation
Research Approach Survey Method
Sample Size Employees-25
Type of Questionnaire Structured and unstructured
Types of Questions Open as well as close ended questions
Sampling Plan
Sampling Unit Respondents are employees of receiving
department
Sampling Size 25
Sampling Procedure Non-random purposive sampling
Contact Method Personal

Data Collection
Primary Questionnaire, Observation
Secondary Website
Data Processing A number of tables to be prepared to bring
out the main characteristics of the collected
data. Inferences to be drawn from the data
collected.
2.2 Primary Data
Data which is collected for the first time is called primary data. In the study primary data
includes the data which is collected from the employees directly with interaction. These
employees are the one’s working in the operations department of the store. The study includes
data got with personal interaction.
All data used in evaluation and market studies should be current, relevant, reliable, accurate, and
conceptually correct. This article presents a discussion of each of these terms and their
significance in the context of the data and in the analysis.
The researcher needs to be able to recognize the challenges, understand its significance and
evaluate the applicability of that data in the analysis.
2.3 Secondary Data
Secondary data is data collected by someone other than the user. Secondary data is the data that
have been already collected by and readily available from other sources. Information from
secondary sources, i.e., not directly compiled by the analyst; may include published or
unpublished work based on research that relies on primary sources of any material other than
primary sources used to prepare a written work. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data cannot be
obtained at all.
Secondary data has been gathered by others for their own purposes, but the data could be useful
in the analysis of a wide range of real property. In general, secondary data exists in published
Table No.2.1.1: Research Design

sources.
Common sources of secondary data for social science include censuses, organisational records
and data collected through qualitative methodologies or qualitative research.
2.4 Sample design
Sampling is a practice a researcher uses to draw data on people, places, or things to study.
Sampling allows statisticians to draw conclusions about a whole by examining a part. It enables
us to estimates characteristics of a population by openly observing a portion of the entire
population. The whole that the researcher wants to know something about is the population is
called a sample.
2.4.1 Target Population
Population generally refers to the total of the items or units in any field of research. The target
population is the Employees working in operations department of Hypercity.
2.4.2 Sample Size
Sample size determination is the act of choosing the number of observations or replicates to
include in a statistical sample. For doing the research, sample of 25 employees were taken
2.4.3 Sampling Method: Purposive Sampling (Non-random)
The target population are the employees of Hypercity who are a part of the operations
department. So, for the research to be effective the sampling method used was the non-random
purposive sampling.
This sampling technique provides a focussed effort in gathering rich data to answer the research
question. It allows the researcher to identify the specific individuals who have the information
and experience in that area related to the research question. The researcher is then able to focus
on collecting data from this selected sample of people.

2.5 Methods of data Collection
The following sources have been sought for the preparation report:
Primary data:-
Data that is collected for the specific purpose at hand is called as primary data. Information
relating to the project was collected during formal and informal discussions with the operation
Manager and Staff of Hyper city.
a) Questioning
Here, the data is collected is by asking questions from whom we are supposed to have
desired information. The question may be asked in written or oral. A format list of question is
often called questionnaire. The questionnaire consists of close-ended and open ended
questionnaire. The study includes questionnaire of 6 questions.
b) Observation
When data are collected through the observation, the researcher do not ask the question,
instead they keep track of the research design which is used in the necessary data collection
in one or both of these two methods.
Secondary Data:
Probably the quickest and the most economic way for researchers to find out the possible
hypothesis are to take advantage of the work of others & of their own earlier efforts. In a
relatively short time, researcher can scan a large volume of possible data. It is generally collected
through secondary sources like newspapers articles, magazines, journals, internet, earlier reports
& surveys.
Secondary data highlights the contextual familiarities for primary data collection. It provides rich
insights into the research process. Secondary data is collected through following sources:
 Website
 Journals
 Magazines
 Leaflets
2.5.1 Instrument of data collection

These include Questionnaire, Interview, Observation and Reading. Essentially the researcher
must ensure that the instrument chosen is valid and reliable. The validity and reliability of any
research project depends to a large extent on the appropriateness of the instruments.
Questionnaire
This is a data collection instrument mostly used in normative surveys. This is a systematically
prepared form or document with a set of questions deliberately designed to elicit responses from
respondents or research informants for the purpose of collecting data or information.
 It is a form of inquiry document, which contains a systematically compiled and well
organized series of questions intended to elicit the information which will provide
insight into the nature of the problem under study.
 It is a form that contains a set of questions on a topic or group of topics designed to
be answered by the respondent.
 The respondents are the population samples of the study. The answers provided by
the respondents constitute the data for the research.
Structured questionnaires
They are those in which some control or guidance is given for the answer. This may be described
as closed form because the questions are basically short, requiring the respondent to provide a
‘yes’ or ‘no’ response, or checking an item out of a list of given responses.
Unstructured questionnaire
This type of questionnaire is also termed as open-ended or unrestricted type of questionnaire
which calls for a free response in the respondent's own words. The respondent frames and
supplies the answer to the question raised in the questionnaire. It also constitutes questions which
give the respondent an opportunity to express his or her opinions from a set of options.
Observation
The study of photographs, objects, computer software and instruction leaflets fall within this type
of data collection procedure. The procedure should be unobtrusive to enable informants to share
their reality directly with researchers. It is creative and captures attention visually. The presence
of a photographer or the video technician may be intrusive and influence responses.
Participant Observer

In this type of observation the researcher lives as a member of the subjects of the study while
observing and keeping notes of the attributes of the subject that is being researched so that he can
directly experience, the phenomenon being studied.
Non-Participant Observer
In this approach the researcher does not live as a member of the subjects of the study. The
researcher watches the subjects of his or her study, with their knowledge of his status as a
researcher, but without taking an active part in the situation under study.
2.6 Fieldwork
During the field operation, all possible efforts were made to minimize the errors so that the data
collected may not provide wrong information. Caution was taken at every step while the
respondents were filling up the questionnaire. A lot of time was given to the respondents so that
they could understand the question asked.
2.7 Data Analysis Techniques
There are two main methods of Data Analysis: Qualitative Data Analysis and Quantitative Data
Analysis.
The Qualitative method is a conception of working procedures associated with that the
researcher himself/herself is part of the social reality being analyzed. The data collection and
analysis is performed at the same time and in interaction. Therefore, such studies have high
flexibility.
The Qualitative method aims to accomplish a complete description of the investigated area, but it
tends to include smaller populations than quantitative investigations. Advocates of quantitative
studies therefore criticize the qualitative method because of its subjectivity, since the gathering
of facts and the results from the analysis to a very high extent is dependent on individuals.
Qualitative research is a set of research techniques, used in which data is obtained from a
relatively small group of respondents, and not analysed with statistical inferences.
In this Project Qualitative Data Analysis technique is used.
2.8 Limitations
Relatively small sample size
The people required for conducting survey associated with the questionnaire are simply the

employees working in the operations department itself who have gain expertise in it. Therefore,
the sample size is relatively small.
Frequent Errors
Errors can occur during the transcription process. Different people may interpret comments
differently.
Inability of the respondent to provide information
Despite of the willingness to cooperate, the employees were unable to give accurate information
on questions asked. In other cases, the employees were unable to remember the accurate facts.

Chapter 3
Operational Processes at Hypercity

3.1Operational Departments of Hypercity
3.1.1 SST –Stock Service Team
3.1.2 Receiving
3.1.3 Data Entry
3.1.1 Stock Service Team
Stock service team is the one which manages the stocks which are ordered by the buyer from the
vendor and is delivered by the vendor. They are responsible for classification of the stocks or
inventory by assigning code numbers for identification. This code assignment is concerned with
the Stock Keeping Unit.
 Stock Keeping Unit- SKU is a unique combination of all components that are
assembled into purchasable items. Therefore, any change in packaging or product is a
new SKU.
 SKU’s used at Hypercity
SKU is a combination of units for e.g.: 10003256; it’s of 9 digit which uniquely
identifies the specific items. Whenever an item comes into the store the unique SKU
is given by which the item is being identified. Different code or SKU is given to
different items according to their nature, type and characteristics. All the entries are
made in the system when it comes in the store and all the items along with their SKU
numbers are stored in the system so that there should not be any confusion while
evaluating and managing the inventory.
 International Article Number (EAN)
An EAN-13 barcode (originally European Article Number, but now renamed
International Article Number even though the abbreviation EAN has been retained) is
a 13 digit (12 data and 1 check) bar-coding standard which is a superset of the
original 12-digit Universal Product Code (UPC) system developed in the United
States.
Stock service team is also responsible for managing following tasks:
i. Weigh Calibration & Scanning
ii. Ticketing(Shelf-RMP)
iii. Price checking

i. Weigh Calibration & Scanning
Calibration of weights, means determining its exact mass, which is done by comparisons
between reference and test weights. Weight calibration is an intensive and accurate process,
which is likely to become even more important as more industries performing routine tests of
their weighing equipment to improve their processes, herewith reducing quality issues, thus
saving money.
The receiving team loads its purchase order on a handheld scanner device. This helps
reduce manual entry (and its accompanying errors). Once the items are received, the
warehouse management system prints out a 'put-away' document. This document is now
available on the scanner and guarantees that a DC staffer puts items away correctly. Finally,
when it is time for inventory to be moved to a store a 'pick' document is assigned to a 'picker'
using a wireless hand-held scanner. This document shows the exact location of a product and
the number of pieces to gather. If an item is not on the pick list an error message informs the
picker.
ii. Ticketing
Ticketing is much more essential than its looks because everyday new products come on to the
floor. The new SKU no. is allotted to them & therefore it’s necessary to be cautious so that all
problems which are related to wrong inventory can be eradicated. A ticket generally consists of:-
• Product name & size.
• Offer product category.
• Stock keeping unit (SKU).
• European article number (EAN).
• Bay number.
• Vertical height of shelf in bay from downwards to upwards.
• Horizontal location number of shelf from left to right.
• Facing.
• Height.
• Depth.
• Maximum retail price (MRP).

• Hyper CITY price.
A Hyper CITY ticket can be best understood through following diagram:
Key points to remember about ticket
 If our price is reflected in:
o RED COLOUR – it indicates markdown (M).
o YELLOW COLOUR – it indicates promotion (P).
o GREEN COLOUR – it indicates new launch (N).
 Offer product category is represented by various alphabets which represents
following:-
o P – Promotion.
o R – Regular.
o G – General.
o M – Markdown.
o N – New.
o A – Active.
Figure No. 3.1.1: Hyper City flash Ticket

iii. Price checking
It is a process of checking the prices of the products whether the prices of the SEL(Shelf
Edge Label) prices are matching with the system or not. If the prices are not matching then
SHL is changed with new prices, this process is known as price checking. By this process
inventory is properly managed, so this process helps in managing the inventory.
3.1.2 Receiving Department
The department which perform the function of Receiving of the product from different vendors
as quality prescribed by the Buyers is known as receiving department.
Receiving department plays the major role in managing inventory. During receiving from the
back gate the employees manage inventory and place the inventory in the proper way at their
places. SAV, RTV, FREE GIFTS are also managed by the inventory management team.
 Key terms while receiving stocks from vendor
Purchase Order
A purchase order is a document sent to a supplier or vendor, authorizing shipment of a product to
the customer at a specified price and terms. The creation of a purchase order creates a legally
binding contract which cannot be changed without the consent of both parties. A customer may
sometimes create an open or standing purchase order which allows the customer to order
quantities of the product(s) from the vendor over a period of time (usually a year) at the specified
price. Open POs are often used for services which occur over a period of time.
The typical sections of a purchase order are:
 Date
 The purchase order number
 Names and addresses of both the customer and the supplier/vendor.
 Description of the items being ordered, the cost for each, and the total amount.
The PO number is an important reference for both the customer and the supplier Also Known
As: Purchase Requisition.

Companies use purchase orders for several reasons:
 Purchase orders allow buyers to clearly and explicitly communicate their intentions to
sellers
 Sellers are protected in case of a buyer's refusal to pay for goods or services
 Purchase orders help a purchasing agent to manage incoming orders and pending orders
 Purchase orders provide economies in that they streamline the purchasing process to a
standard procedure
Commercial lenders or financial institutions may provide financial assistance on the basis of
purchase orders. There are various trade finance facilities that almost every financial institution
Figure no. 3.1.2: Format of Purchase Order

allows to business people against purchase orders such as:
Before Shipment credit facility
 Post Shipment credit facility
 Trade Finance facility
 Foreign Bill Purchase credit facility
 Bill retirement credit facility
 Order Confirm
Invoice
An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale
transaction and indicating the products, quantities, and agreed prices for products or services the
seller had provided the buyer.
Payment terms are usually stated on the invoice. These may specify that the buyer has a
maximum number of days in which to pay, and is sometimes offered a discount if paid before the
due date. The buyer could have already paid for the products or services listed on the invoice.
A typical invoice contains
i. The word invoice (or Tax Invoice).
ii. A unique reference number (in case of correspondence about the invoice)
iii. Date of the invoice.
iv. Credit terms.
v. Tax payments if relevant (e.g. GST or VAT)
vi. Name and contact details of the seller
vii. Tax or company registration details of seller
viii. Name and contact details of the buyer
ix. Date that the goods or service was sent or delivered
x. Purchase order number (tracking nos. requested by the buyer to be mentioned on the
invoice)
xi. Description of the product(s)
xii. Unit price(s) of the product(s) (if relevant)
xiii. Total amount charged (optionally with breakdown of taxes, if relevant)

xiv. Payment terms (including method of payment, date of payment, and details about charges
for late payment)
Stock receiving processes
i. FMV
Fair market value (FMV) is an estimate of the market value of a property, based on what a
knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing,
and unpressured seller in the market.
Fair Market Value (FMV) assumes that a buyer and seller are aware of the facts and that the
Figure no. 3.1.3: Format of Invoice

price in which the property exchanges for is not the result of a forced sale.
The price that a given property or asset would fetch in the marketplace, subject to the following
conditions:
1. Prospective buyers and sellers are reasonably knowledgeable about the asset; they are
behaving in their own best interests and are free of undue pressure to trade.
2. A reasonable time period is given for the transaction to be completed.
Given these conditions, an asset's fair market value should represent an accurate valuation or
assessment of its worth.
 DSD
Direct Store Delivery is the term used to describe a method of delivering products from
supplier/distributor directly to a retail store, thereby bypassing a retailer’s distribution center.
DSD is an alternative distribution model to centralized distribution and tends to be used
extensively in the food industry for fresh products such as milk and bread where minimizing the
number of days in the supply chain is a key concern.
 ADSD
Auto Direct Store Delivery is also the method of delivering products from supplier/distributor to
the retail store but in this process the stock is not scanned and brought directly to the floors. The
number of products or amount of stock sold on the floors is recorded and the data is given to the
vendor who then generates a bill of stock which is sold.
 Purchase Order Receiving
Figure no. 3.1.4: DSD network

The purchase department prepares a purchase order for the supply of materials. The purchase
order is a contractual agreement with the supplier for the supply of materials. Purchase order is
prepared in five copies, the original copy is sent to the supplier, the second copy for receiving
department, third for account department, fourth for initiating department and fifth one is
retained in the purchasing department for reference.
The receiving department performs the function of unloading and receiving of materials
dispatched by the supplier. The receiving department verifies the materials with the help of a
delivery note and the copy of the purchase order after receiving the delivery of goods. The
supplier sends detailed information and an invoice of the materials supplied by it. It has to verify
and check the quantity and physical condition of materials by making a comparison of the
purchase order and the materials received.
RECEIVING PROCEDURE:
1) Unloading and checking the vehicles- In hypercity the number of containers or package of
materials unloaded from the carrier's vehicle is checked against the carrier's manifest (freight
bill or delivery order) to ensure that all the full consignment or order has been delivered. All
packages of materials are also inspected for external damage; any damage found is inspected
by the carrier's representative and noted on the receipt where the receiving clerk signs.
Failure to follow this procedure before accepting a shipment or delivery can relieve the
carrier of all liability, except liability for concealed damage not evident until the container is
unpacked.
2) Unpacking and inspecting the material-A receiving clerk is held responsible for three step
verification.
a) First, he or she checks the material received against the supplier's packing slip and
against a copy of the firm's purchase order to verify that the correct items have been
shipped.
b) Second, the quantity of the shipment is verified in the same manner.
c) Finally, the clerk inspects the general condition of the material to determine whether any
external damage was incurred during shipment.
3) Completion of the receiving report- In hyper city the paperwork system used varies
significantly from company to company. In some companies, a multipart receiving report
form is produced as a by-product when the purchase order is generated. When the receiving

clerk has finished the inspection, he or she completes the form by recording the quantities of
the items received, indicating those that are still open, and noting any other useful
information on the form. In other firms that utilize a computerized purchasing/inventory
system, the clerk records the receiving data on the receiving report or a short form which a
data entry clerk keys the data directly into the computer system. The system then updates the
order and inventory records and may also generate a receiving report in either hard copy or
electronic form. Regardless of the system used, four operating groups generally require
notification that the material has been received: the requisitioned, the purchasing department,
the accounting department, and the inspection department if technical inspection is required.
4) Delivery of the material- For non-stock materials, the receiving department is usually
responsible for delivery - directly or via an internal delivery service. In the case of inventory
materials, the practice varies. In some firms, the receiving department is responsible for
internal deliveries, while in others this function is performed by an internal transportation
service. In still others, stores clerk are responsible for picking up their own materials. Upon
delivery of the materials, the recipient customarily signs the receiving report or a delivery
receipt, relieving the receiving clerk of further responsibility for the material.
It should be noted at this point that in some firms not all delivered materials go through the
receiving operation, depend on the inventory and purchasing method applied by the company,
e.g., when a company apply just in time purchasing shipment, sometimes the delivery is directly
to the point of use, so the receiving is bypassed.
5) Checking and Passing Bills for Payment-When the invoices are received from the supplier,
they are sent to the store and accounting departments for the verification of the quality and
price of materials mentioned in the invoices. After checking the required documents, the
store department requests the accounting department for making the payment of the invoice
to the supplier.
PO receiving Flowchart

3.1.3 Data Entry
a. Bill Check
Payables shares purchase order information from your purchasing system to enable online
matching with invoices. Match your billed (invoice) items to the original purchase orders to
ensure that you pay only for the goods or services you ordered. If you are billed for an item
over the amount and quantity tolerances you define in the Invoice Tolerances window, during
Approval, Payables applies a hold to the invoice which prevents payment.
b. Quantity Difference note
When you match an invoice to a purchase order, payables ensures that you match only to
purchase orders for the supplier on the invoice and that the purchase order and invoice
currency match.
Approval validates the matching, tax, period status, exchange rate, and distribution
information for invoices you enter and automatically applies holds to exception invoices. If
an invoice has a hold, you can release the hold by correcting the exception that caused
Approval to apply the hold and then resubmitting Approval. You can manually release
certain invoice holds even if you have not resolved the matching error condition.
Approval Example
For example, you have three invoices on matching hold.
Invoice 1: The first invoice is on matching hold because the quantity billed exceeds the
quantity received.
Your receiving department receives the goods and records the receipt information.
Your invoice now matches the receipt and Payables releases the hold when you submit
Approval.
Invoice 2: The second invoice is on matching hold because the invoice price exceeds the
purchase order shipment price.
A supplier sends a credit to correct the amount due on a previous invoice. After you enter the
credit and match it to the same purchase order, your invoice now matches the purchase order

and Payables releases the hold when you submit Approval. Use Approve Related Invoices in
the Invoice Actions window to submit Approval for both the credit and the original invoice.
Invoice 3: The third invoice is on matching hold because the quantity billed exceeds the
quantity ordered.
You increase your tolerance levels using the Tolerances window. Your invoice now
matches your receipt and purchase order within your newly-defined tolerance levels and
Payables releases the hold when you submit Approval.
c. Bill Matching
When you match an invoice to a purchase order, Payables creates invoice distributions
using the purchase order distribution accounting information. You cannot delete invoice
distributions created through matching. If you incorrectly match an invoice to a purchase
order, you must cancel the invoice or reverse the individual distributions to cancel the
match.
3.2 Other daily operational processes at Hypercity
PICS-Perpetual inventory Count Sheet
PICS is a process of calculating variance of the products and preparing a sheet of physically
counted inventory that sheet is known as PICS. The sheet which is prepared matched with the
system the difference is calculated is known as variance. This is a process of managing inventory
by physically counting products of each and every SKU and then matched with the system
showing inventory of each SKU.
FMR check- Floor Movement Register
It is the register always placed on the floor to check out the employees scheduling. This floor
register is placed for the purpose, if any employee has to go from floor; he/she have to register
themselves on floor register. By this anybody would come to know that which employee is
missing from his/her place. Noticed where they had gone and at what time, this process is known
as FMR check.

OOS- Out of Stock
When system show that this product have zero inventory then we can say that product is out of
stock this is known as Out Of Stock and then purchase order list is prepared and send to the
Buyer.
Negative Inventory
When inventory or stock is shown negative in the system that inventory is known as negative
inventory. To check negative inventory, if there are two products having different SKU numbers
and different bar codes one product is sold on the other barcode. For example: If ‘A’ product gets
finished and ‘B’ has the inventory of two units. Product ‘A’ is of Rs 100 and Product ‘B’ is of Rs
200 somebody by mistake Product ‘B’ is kept on ‘A’ SKU by which pricing mistake would be
there and due and due to which product ‘B’ would be billed at price ‘A’ by which earlier system
shows the inventory of ‘A’ was zero but now after billed inventory of product ‘A’ gets negative
this is known as negativeinventory. A special procedure is followed to adjust negative inventory.
Refilling
It is a daily activity process of filling the goods in their shelves so that product should be placed
on bulk quantity that is known as refilling.
Visual Merchandise
It is a process of managing the store merchandising on unrelated Product to attach customers by
keeping flowers on cooler this process is known as visual merchandising so that visually it looks
good. There is a general tendency of the buyers that they get attracted to those things which are
good looking in their outward appearance. So, it is very important for any retail store to create
pleasant visual merchandise which shall catch the eye of the customer and they should get
tempted to enquire about it.
Code Management
It is basically to check the expiry date of the products. In this process, it is calculated for next
three months and the product which has nearest expiry date is kept in front and rest are placed
sequentially behind it. The products which get expired are taken to the back store and their bar
codes are changed with new expiry dates if those products are of Hypercity brand. Code
management team fills a form and makes a full report that how much products are getting
expired and given to the receiving department. By this way expired inventory is removed out
from the floor.

 First step to collect or to make the monthly SKU list from 1st to 30th in which coding
have to do.
 A file is made in which it is calculated for the next three months and according to that
sheet is prepared. The main focus of the code management team is on the latest month’s
expiry.
 Last two months expiry list put on the MMS so that expiry would be updated and every
one would get aware. But for this month expiry a special list is prepared and that list is
sent to the buyers so to take further decisions.
 If the product would not satisfy RTV criteria then it costs the company, due to which
BOGOF (BUY One Get One Free) offer is created due to which some price would be
received by the company rather to get Zero amount.
Floor Walk
It is a process of checking the Hygiene, ticketing, merchandising etc that whether the products
are placed correctly or not, this process of checking out positive and negative points by taking a
walk on the floor is known as floor walk.
3.3 Operational Processes for Managing damages
SAV- Stock Adjustment voucher
It is basically used when Product gets defective due to any reasons (expiry, broken, leakage etc.)
and it has no usage value then voucher is filled to adjust that stock which is removed from the
inventory that is known as Stock Adjustment Voucher.
RTV- Return to Vendor
Return to vendor, vendor claims, and vendor returns all refer to the act of filing a claim against
your vendor for damages, shortages, or incorrect products in their product shipment. RTV is
when you file a claim against your carrier for losses or damages that they caused in transit. It is a
process of Hypercity under which damaged products are returned to the vendor.
At Hypercity, all the products which are damaged or needs to be sent back to vendor for reasons
like defective/bad quality/wrong price, etc are collected at one allocated place in the section and
at 6:00 pm daily the details of the same is entered in the return to back store memo and handled
over to the receiving manager.
When to Return to Vendor

 If your vendor loaded the trailer and did not allow the carrier to inspect it, then you would
use the return to vendor process, rather than filing a concealed damage claim. Carriers
typically have the right to inspect a load when it is handed off to them.
 If your vendor sent you the wrong product.
 If you need to make a return to your vendor due to your own ordering error (in this case
the vendor may charge you restocking or administrative fees).
The Return to Vendor Claim Process
The store’s responsible individual should submit the RTV claim via email, mail, or fax to ensure
that they have a paper trail. To ensure that they have included all necessary information, they use
a RTV claim form. This vendor claim form is sent to the vendor and a copy is sent to the
company’s accounts payable department. This ensures that your company does not pay the
invoice.
Vendor Return Details
When you file the vendor return claim, collect the following information from the purchase and
provide them with your claim:
• Claimant contact information
• Carrier contact information
• Shipper contact information
• Reason for vendor claim
• Purchase order number
• Bill of lading number
• Delivery receipt – a copy is acceptable
• Load date
• Ship date
• Seal number
• Quantity
• Description of the product
• Value per unit

• Total value
Return to Vendor Supporting Documents
You should also include the following documents to support your vendor claim:
• Original shipment invoice
• Notification of loss
• Delivery receipt (copy is acceptable)
• Invoices for repairs or replacements
• Copies of request for inspection required if claiming damaged product or
concealed
• Inspection report, if completed
• Waiver of inspection by carrier
• Explanation of how losses were calculated
• Photographic evidence of any damage
3.4 Management Information System
Maintaining such a huge store is much difficult process for its management team but this seem to
be possible because of their effective management information system (MIS).
A management information system (MIS) can be defined as a system that:
 Provides information to support managerial functions like Planning, organizing, directing,
controlling.
 Collects information in a systematic and a routine manner which is in accordance with a
well-defined set of rules.
 Includes files, hardware, software and operations research models of Processing and storing,
retrieving and transmitting information to the users.
A management information system (MIS) is a subset of the overall internal controls of a business
covering the application of people, documents, technologies, and procedures by management
accountants to solving business problems such as costing a product, service or a business-wide
strategy.
Management information systems are distinct from regular information systems in that they are

used to analyze other information systems applied in operational activities in the organization.
The term is commonly used to refer to the group of information management methods tied to the
automation or support of human decision making, e.g. Decision Support Systems, Expert
systems, and Executive information systems.
An effective MIS has the following objectives
1. Facilitate the decision – making process by furnishing information in the proper time frame.
This helps the decision – maker to select the best course of action.
2. Provide requisite information at each level of management to carry out their functions.
3. Help in highlighting the critical factors to the closely monitored for successful functioning of
the organization.
4. Support decision-making in both structured and unstructured problem environments.
MIS systems at Hypercity
The MIS systems at Hypercity are deployed by JDA software solutions. They deployed an
advanced store replenishment solution that helps them to replenish the stocks back to the shelf at
a rapid pace.
3.4.1 Distribution centre Management System
3.4.2 MMS Inventory Count System
3.4.1 Distribution Centre Management System
The receiving department uses the Distribution Centre Management System to keep records of
the stocks received by the receiving department of Hypercity. This MIS system is useful in
keeping the records of inventory and the details of authorised person accepting the inventory
from the vendor.
Distribution Center Management System (DCMS) is a user friendly Warehouse Management
System (WMS), designed to track the activities performed in a Distribution Center (DC)/
Warehouse. It automates the entire process flow of receiving, managing and shipping goods to
customers from the warehouse. DCMS solutions are designed for both large and small scale
businesses.
DCMS helps warehouses to remove the risk of stock pile-up, stock outs, pending orders and loss
of sales due to customer dissatisfaction.

A typical list of modules for DCMS can be as follows:
i. receiving
ii. put-away
iii. order processing
iv. replenishment
v. pulling
vi. restocking
vii. picking
viii. validation
ix. sorting
x. shipping
Features of a DCMS also have the following:
 crate management
 supervisory control
 reports
3.4.2 MMS Inventory Count System
Hypercity uses a Merchandise Management System for generating their daily sales and inventory
report. The leading host transaction solution for the IBM iSeries environment, JDA Merchandise
Management System / MMS offers a short implementation timeframe to quickly enable retailers
to drive sales, margins and cash flow by getting the right products to the right place at the right
time.
The application suite includes the following:
 Inventory Control and Procurement
 Buyer’s Workbench
 Vendor Management
 Merchandise Receiving, Allocation and Replenishment
 Distribution Center Management
 Price Management

 Promotional Management
 Financial Control
A system of records maintained by controlling department which reflects physical movement of
the stock and their current balances. The perpetual counting system can save money, increase
accuracy of the count, and reduce disruption in your operation during the count.
PICS is a process of calculating variance of the products and preparing a sheet of physically
counted inventory that sheet is known as PICS.
Once the physical count of the stock is completed during the receiving process, the team has to
carry out inventory count in the system.
Steps involved in Inventory Count System:

Purchase Order Receiving on the Hand Scanner
In addition to being able to receive items for which Purchase Orders have been raised on the
touchscreen, items such as raw materials (using an EAN128 barcode) and any Dry Goods items
can be received using our Purchase Order Receipt application for the handheld scanner.
Using the handheld scanner for raw material receipt allows each case scanned to be recorded as a
separate item and the weight, pack date and product are all stored instantaneously. The scanner
will allow for the selection of Purchase Orders to receive against and even allow items to be
moved from one Purchase Order to another if a mistake has been made.
Figure no. 3.4.3: Handheld Scanners

At Hypercity, when a product arrives at the DC, the receiving team loads its purchase order on a
handheld scanner device. This helps reduce manual entry (and its accompanying errors). Once
the items are received, the warehouse management system prints out a 'put-away' document. This
document is now available on the scanner and guarantees that a DC staffer puts items away
correctly. Finally, when it is time for inventory to be moved to a store a 'pick' document is
assigned to a 'picker' using a wireless hand-held scanner. This document shows the exact location
of a product and the number of pieces to gather. If an item is not on the pick list an error message
informs the picker.

Chapter 4
Data Analysis and Processing

1. Which operational department activity is more important in growth of HyperCity?
a. SST
b. Receiving
c. Both
Interpretation: The pie chart shows that 8% of the employees think that SST i.e. the stock
service team is more important for growth, whereas 32% people think that receiving activity is
important. But almost 60% of people think that both these departments are important for growth
of Hypercity.Therefore, for growth and increasing sales of Hypercity both the operational
departmental activities are important. Even if one activity is not followed correctly then it may
hamper the sales of Hypercity.
SST
8%
Receiving
32%
Both
60%
Department Activity
Chart No 4.1: Operational activity Important for growth

2. What is the frequency of following operational processes being followed in the store?
Processes Daily Once a
week
Twice a
week
Once in 2
weeks
Once in a
month
Inventory Count
Stock Receiving
Code Management
Visual Merchandising
Refilling
Floor Walk
RTV
Interpretation: The graph shows that Stock Receiving, Refilling and Floor walk are the
activities that happen daily in Hypercity. Inventory count and Code management activities
happen once in a week. Visual Merchandising happens once in two weeks. RTV activity is
carried out once in a month.
This interprets that the employees are aware about the schedule of the operational processes
carried out in Hypercity and these process are carried out accordingly to avoid last minute
confusion.
0
5
10
15
20
25
30
Employees
Processes
Process Frequency
Daily
Once in a week
Twice in a week
Once in 2 weeks
Once in a month
Graph No 4.1: Frequency of operational processes

3. Out of the two processes used to manage the damaged items on the floor which one is the
best?
a. SAV
b. RTV
c. Both
Interpretation: The employees agree that the best process for managing the damaged items is
the RTV process i.e. Return To Vendor but RTV is not always possible in all circumstances.
When the damages occur after receiving the stocks inside the store or warehouse in such cases
we cannot return it to vendor. It is only possible if the vendor agrees to accept such stocks if it
fits their policy. Otherwise, the damaged items are managed by the SAV process. In this process
a voucher is filled to adjust that stock and find solutions to repair and resale the items on the
floor.
20%
60%
20%
Processes
SAV
RTV
Both
Chart No 4.2: Best process for managing damage

4. If one of the operational processes is not used as per their regular schedule, will it have an
impact on sales?
a. Yes
b. No
c. Maybe
Interpretation: The pie chart states that the sales will hamper if any one of the operational
processes is not implemented as per their regular schedule. In order to keep the store to be
operational in a long run and to smooth up or increase the sales the store must follow the agenda
of operational processes.
5. Can you describe the standard working procedure followed by the stock receiving department
of Hypercity?
i. Firstly quality of the product is checked.
ii. Secondly they measure weight or quantity to receive.
iii. Then rates or prices are verified and send the list to the internal receiving department
where prices are verified.
iv. If products get selected then that products are entered to the inventory department after
uploading on the server or mms system that this much inventory received and on that
prices are also uploaded.
v. Then the ordered received send to the inventory department.
64%
20%
16%
Sales
Yes
No
Maybe
Chart No 4.3: Impact on sales

6. Which one of the stock receiving processes are the best?
a. FMV
b. PO
c. DSD
d. ADSD
Interpretation: Some employees were of the opinion that PO i.e. purchase order receiving
process is the best, while other were of the opinion that only the implementation of the PO
process cannot be said to be best however combination of process can provide best results. The
combination they chose was of PO and FMV.
12%
16%
8%
4%
60%
Processes
FMV
PO
DSD
ADSD
Other (PO & FMV)
Chart No 4.4: Best process stock receiving process

7. Are the goods inspected for conformance while receiving the stocks from vendor?
a. Yes
b. No
Interpretation: All the employees agree that the stocks received from the vendor are inspected
for conformance. According to the rules the receiving in charge must verify the invoices and the
purchase orders for correct items and quantity and they must also inspect the quality, damages if
any and hygiene of vehicles and crates. This results into commensurable acceptance and
inspection of stocks.
8. Are non-conforming goods promptly returned to vendor?
a. Yes
b. No
Interpretation: All goods and/or services specified in this order are subject to Purchaser’s
inspection within a reasonable time after arrival at the ultimate destination. If, upon inspection,
any merchandise is found to be non-conforming, defective, of inferior quality or workmanship,
or fails to meet the specifications of any other requirements of this order then Purchaser may
96%
4%
Yes
No
88%
12%
Yes
No
Chart No 4.5: Inspection for conformance
Chart No 4.6: RTV of non-conforming goods

reject same and return the Non-Conforming Goods to Supplier at supplier’s expense. All the
non-conforming goods are thus promptly returned to the vendor according to the policies.
9. Which management information systems are used for the operational processes at Hypercity?
Answers:
 Distribution Center Management System (DCMS)
 Merchandise Management System(MMS)
10. Dose the Management information system responses accurately and timely?
a. Yes
b. No
c. Sometimes
Interpretation: The pie chart shows that more than 60% of employee say that the MIS system
responses accurately and timely. The remaining employees are of the opinion that the system has
a great response time but they face problems while getting accurate information. The problem
about accuracy is that they often find price differences of certain products in the system.
64%
16%
20%
Response
Yes
No
Sometimes
Chart No 4.7: Accurateness of MIS

11. Which one of the following problems mostly occurs while using the MIS systems?
Problems Very
rarely
Rarely Occasionally Frequently Very
Frequently
Less system time-out
Case sensitivity
Difference in prices on
system
Product availability issues
Interpretation: Out of the total number of problems faced by the staff while using the MIS
system less system time-out (expiry) occurs very frequently. The default time for expiry of the
system is usually 30mins, but at times the system expires in 5-10mins, without any notification.
This compels the agent to go through the entire process of signing-in into the system, which is
quite time consuming.
Other problem faced that occurs frequently is the issue of price differences. When the agent
scans for the price of a particular product, the price for particular product shown beside the
0
5
10
15
20
25
Less system time-
out
Case sensitivity Price diffrences Product
availabilty issues
No.ofEmployees
Problems faced in the MIS system
Problemsin MIS
Very Rarely
Rarely
Occasionally
Frequently
Very Frequently
Graph No 4.2: Occurrences of problems in MIS

product description is different to that from the price on the package.
These two problems occur in higher percentage than that of the other mentioned problems and
they need to look for solutions to reduce such problems.
12. Has the enhancement of point of sale operations increased the sales due to the introduction of
management information system like the handheld scanners?
a. Not at all
b. Very little
c. Somewhat
d. To great extent
Interpretation: The graph shows that the enhancement of point of sale operations has increased
the sales to a great extent due to the introduction of management information system like the
handheld scanners. The use of these scanners has reduced time, reduced errors and helped in
maintaining records.
opinions
0
5
10
15
Not at all
Very Little
Somewhat
To a great
extent
Staff
Not at all Very Little Somewhat To a great extent
opinions 0 3 10 12
opinions
Graph No 4.3: Effect on sales due to introduction of MIS

Findings
 For growth and increasing sales the operational department carries out their activities and
other operational processes according to the schedule.
 The operational process like the merchandising, refilling and pricing helps the store in
making the goods available at the shelves at right time, right quantity and at right price.
 Stocks are ordered before time to control the stock volume and segregated into various
departments and classified with the help of code assignment. Stocks are maintained in
such a way that it helps the staff to replenish the stocks back to the shelves at a rapid
pace.
 The stock received follows the concept of Place for everything and everything in its
place.
 To prevent cross contamination color coded crates, separate weighing scales for
vegetarian and non-vegetarian products and separate temperature probes are used for
monitoring temperatures.
 At receiving bay the goods are inspected daily for conformance and all the non-
conforming goods are returned to the vendor.
 In Hypercity, MMS system is used in every department which helps to take correct
decisions about the inventory, vendor management, price management, financial control
etc.
Along with the MMS system, all department use DCMS system a warehouse management
system which is designed to track the activities performed in a Distribution Centre. It allows
smooth communication among the store and the warehouse to avoid any kind of
miscommunication.

Recommendations
Hyper CITY should move according to the latest trends and should always be ready to introduce
innovative features into their products so that they can compete with ever changing environment.
According to the trend and for providing the service to the customers online shopping must be
started by Hypercity.
Credit availability for retail traders must be encouraged with a view to expanding employment
and higher utilization of fixed assets. This would lead to less wastage of perishables, enhance
nutritional status of producers and increase caloric availability.
Hypercity should upgrade their MIS systems in order to solve the drawbacks the staff faces while
using the Merchandise management system.

Conclusion
Finally analysing all the factors responsible for increasing sales and growth of Hypercity I came
to conclusion that Hypercity should give more emphasis on merchandising and analysing the
processes.
Hypercity should efficiently use various inventory management tools to control the stock levels
like ABC analysis, monitor stock levels. They can start an inventory reduction program
whenever cash gets tight and can make strategic decisions to manage inventory and continually
improve the business results.
Hypercity’s great mix of daily operational processes makes it organized over other organized
hypermarkets.
The MIS system used to support the operational processes has helped reducing manual entries
which are often accompanied by errors. This provides accurate data entry of stocks and bill
matching with reduction in time.
Hypercity manufactures its own brands like CITY life, Everyday, City style thereby reducing its
unit cost production, enhances its quality and generates competitive advantage over others.

Bibliography
Books:
 Donald Harris and David Walters, Retail Operations Management: A Strategic Approach:
Prentice Hall, 1992
 Berman Barry, Retail Management- A Strategic Approach: Pearson Education India,
2013
 C.R.Kothari, Research Methodology Methods and Techniques: New Age International
Publishers, Second Revised Edition, 2004
Magazine Articles:
 Rajeev Kumar, Hypercity: Pushing Profitability through Small-Format Stores, Images
Retail, June 2013
Websites:
 Understanding the Receiving Business Process
http://www.oracle.com/pls/psft/
 HyperCity Automates Distribution Centers’ for Efficiency, CIO Team, 30
November,2010
http://www.cio.in/case-study/hypercity-automates-distribution-
centers%E2%80%99-efficiency
 Hypercity Company Profile
www.hypercityindia.com/
 Merchandise Management System
http://www.jda.com/solutions/merchandise-management-system/

Annexure
A. Questionnaire
1. Which operational department activity is more important in growth of HyperCity?
a. SST
b. Receiving
c. Both
2. What is the frequency of following operational processes being followed in the store?
Processes Daily Once a
week
Twice a
week
Once in 2
weeks
Once in a
month
Inventory Count
Stock Receiving
Code Management
Visual Merchandising
Refilling
Floor Walk
RTV
3. Out of the two processes used to manage the damaged items on the floor which one is the
best?
a. SAV
b. RTV
c. Both
4. Will the sales of the store have impact if one of the operational processes is not used as per
their regular schedule?
a. Yes
b. No
c. Maybe
5. Can you describe the standard working procedure followed by the stock receiving department
of Hypercity?
6. Which one of the following stock receiving processes are the best?
a. FMV
b. PO
c. DSD

d. ADSD
7. Are the goods inspected for conformance while receiving the stocks from vendor?
a. Yes
b. No
8. Are non-conforming goods promptly returned to vendor?
a. Yes
b. No
9. Which management information systems are used for the operational processes at
Hypercity?
10. Does the Management information system responses accurately and timely?
a. Yes
b. No
c. Sometimes
11. Which one of the following problems mostly occurs while using the MIS systems?
Problems Very
rarely
Rarely Occasionally Frequently Very
Frequently
Less system time-out
Case sensitivity
Difference in prices
on system
Product availability
issues
12. Has the enhancement of point of sale operations increased the sales due to the introduction of
management information system like the handheld scanners?
a. Not at all
b. Very little
c. Somewhat
d. To great extent

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