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Inventory mgmt
Spar is an international retail chain headquartered in the Netherlands. It operates over 12500 stores globally including 13 stores in India through a joint venture. Inventory management is important for Spar to maintain optimal stock levels, meet business needs, and avoid losses. Key tasks include daily reports, stock checks, receiving goods, and categorizing inventory. Challenges include discrepancies, damaged goods, and space constraints.
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Inventory mgmt
- 1. Inventory Management At Spar Hypermarket Presented By Ashish Sarolia IMT Ghaziabad
- 2. INTRODUCTION Spar wasfounded in 1932 in the Dutch city of Zoetermeer Headquarter is located at Amsterdam, Netherlands It is the world's largest independent voluntary retail trading chain and largest food retail chain Total turnover is 40 billion dollar and operates in 34 countries Total Number of stores stood at 12500 Employs more than 180000 persons worldwide
- 3. SPAR IN INDIA Spar has a joint venture with Landmark group and works under the corporate name of MAX hypermarkets India Pvt. ltd. Headquartered at Banglore Total stores in India – 13 Store Format – Hypermarket and supermarket Uses 'EDLP' or 'Every Day Low Price' concept
- 4. Major Divisions SPAR General Food & Grocery Electronics Textiles Max apparel Merchandising
- 5. Sub-Categories Fresh Categories & Grocery Dairy & Fruits & Bakery & Meat & Fish & Staples Frozen Vegetable Concept Poultry seafood
- 6. Cleaning Aids Liquor & Home Tobacco Needs Disposable Ready food Ware FMCG Personal Beverages Products Snack food Prep food
- 8. Home Appliances Home Personal Care Entertainment Electronics Personal IT Entertainment Telecom
- 9. Basic Bedding Kitchen & Table Bath Linen Linen Other Accessory Textile Floorings Fashion Home Bedding accessories Curtains
- 10. INVENTORY MANAGEMENT Inventory- Goods and Materials that are available in stock by a business Inventory Management-The process to maintain optimum inventory to be able to meet business requirements and avoid over or under inventory that can impact the financial figures
- 11. PURPOSE OF INVENTORYMANAGEMENT How many units to be order When to order Keeping a sufficient amount of units so that company don’t suffer from loss of business To provide better customer service by providing them what they want at the time of demand Reducing operational cost by keeping optimal quantity of stocks
- 12. INVENTORY PROCESS • To get the desired amount of quantity Receiving from Vendors • To safekeeping the stock and protect it Handling from any wear and tear • To putting the stock on to the shelf in Placing most customer friendly way • Providing best customer service in terms Selling of instant availability of products
- 13. MAIN TASKS OFINVENTORY MANAGEMENT TEAM Daily Dump Report preparation – It is the report which shows the daily waste happened in F&V, Nonveg, Concept and Bakery department DDR includes Ideal dump percent for each sub- category, Target for every day and target achieved percent on each day Internal transfer report preparation and Internal transfer checking – This is a report that includes transfer of products between one department to another within the store
- 14. CONTD.. Daily Pricechange report preparation A,B,C count – Checking of the stock Checking the FIFO compliances Checking the PI(Point of Inventory) Stock Voucher creation- This contains the actual stock quantity present in the physical form 90 days stock correction Moving and non-moving stock check
- 15. ADVANTAGE OF VARIOUSREPORTS AND CHECKS DDR helps in better demand forecasting and also helps in keep track of waste generation Internal transfer report helps in keeping the inventory figures right and to show the internal expenditure happening DPC helps in deciding better costing method FIFO checking helps in better customer service and keeping track of near expiry products Stock vouchers shows the actual movement of products
- 16. RECEIVING PROCESS Receiving processfor direct to store products is intended to facilitate the Store DC/WH Manager, Supervisor, CSA`s & Loss Prevention Team to understand the various attributes about proper receipts of the goods that are delivered by the vendor directly at the store for sales.
- 17. THE PROCESS Delivery Schedule Vendor Deliver Order Placed Order Delivery Vendor Placed Schedule Deliver
- 18. CHECKING THE VALIDITY. Validity of Purchase Order & Invoice brought in by the vendor is checked. Gate pass issued with the serial number in the order of which the vendors stock will be accepted. Details passed to the receiving staff.
- 19. PO – PURCHASEORDER VALIDITY Invoice Quantity Higher Lower Not Accepted Invoice Excess Returned corrected to the to the Vendor available quantity Signed off by Vendor & Rec Sup Sent for GRN
- 20. CHECKING THE DISCREPANCY. Discrepancy between PO and Invoice checked by verifying both the document and are to inform the security to call the vendor in the order of the token number given.
- 21. Vendor is tounload the stock in the area designated for receiving and the authorized staffs are to check the stock for the following before sending the PO & Invoice for GRN. Quantity Damages MRP EAN Mfd Code Date
- 22. GRN(GOODS RECEIPT NOTE)PROCESS This is the process by which every invoice is feed into the system Software – Zensar Retail management System For every incoming invoice a TI(Transfer In) number is generated For every outgoing invoice a TO(Transfer Out) number is generated These documents adjusts the stock level of DC/WH and the store accordingly For damaged and expired products which is to be returned back to DC or vendor, a NRGP report is generated Every invoice generated have some reason code which shows the type of transaction
- 23. GRN PROCESS PO(purchase order) placed to the vendor Vendor generates the invoice and sends a copy to store(PRD- pre receiving document ) Goods received at receivables area and invoice is matched GRN number is generated, stock information updated into the system and goods are send to the shop floor For any damaged or expiry product NRGP report generated .If return back agreement is there then send the product back to vendor otherwise send it to dump area
- 24. INVENTORY CATEGORIZATION Whole Inventory is being divided into 3 categories on the basis of Shrinkage and Importance Category Total No. of Category Priority Name SKU’s check period A 218 Thrice in a Highest week B 305 Weekly Medium C 335 Once in 15 days Low F:Mantri Mall - ABC Category List.xlsx *SKU(Stock Keeping Unit) – A unique identifier for each distinct product and service that can be purchased in business
- 25. CONTD.. Every Fridaythere is a promoter stock check takes place 25th of every month there is a stock check for non sellable products i.e. MAX division stock check Each SKU is checked on its intended date. The checking process is as follows Physical System Diff Diff is Stock Stock Recheck report checked Check Check generated
- 26. RATIOS IN INVENTORYMANAGEMENT Stock turn-around ratio – measure of the number of times inventory is sold or used in a time period Eg. Category Name Inventory Turn F&V 1-2 Days FMCG 15 Days Textile 1 Month Vendor Payout Ratio – measures the average number of days a company takes to pay its suppliers Category Name Vendor Payout Ratio F&V 3-4 Days FMCG 15 days GM,Textile 2 months
- 27. ADVANTAGES OF INVENTORYMANAGEMENT Prevent shortages and service delays Track inventory levels in real time Optimize warehouse organization Fewer Missed Sales Opportunities Awareness of Discrepancies
- 28. DISADVANTAGES OF INVENTORYMANAGEMENT Cost incurred More complex system
- 29. MAJOR DIFFICULTIES ININVENTORY MANAGEMENT Difference in physical stock and system stock due to various reason like Cross Billing and Customer theft Faulty SKU codes and missing EAN codes Damaged and expired product handling Space constraints for storing SKU’s Wrong GRN generation
- 30. TYPES OF DAMAGESAND LOSSES Manufacturing Damages Transportation Damages Customer caused Damages Shrinkage Mishandling By the sales staff