This document discusses the supply chain structure and replenishment process for stores. It explains that every business unit has departments which have strokes, colors, and sizes for merchandise. When a product falls below its minimum level, it triggers replenishment from the distribution center. Improving the supply chain through stock counting automation and reducing shrinkage can increase profit margins by ensuring stores always have the right inventory levels.

2.  Introduction:
• General Information.
• Structure of a BU
• Description of the Structure.
 Inward.
 Replenishment.
 Effects of improving the Supply Chain.
 My Learning.

4. Every store has got a maximum and minimum number of merchandize products.
This number which is related to the merchandize products is according to the stroke/style of
the product.
Whenever the quantity of the product goes beyond this minimum number,a trigger is fired and
it goes to the Warehouse/DC.
The Outbound department of the DC despatches the product the next day after pick is
generated in their SAP.
For example,suppose a stroke of T Shirt has a maximum of 6 pieces and a minimum of 2
pieces.Out of these 6 pieces when 5 are sold,only 1 is left.So,the quantity goes below the
minimum and a trigger is fired in the SAP system of the DC.So the next day 5 pieces are
despatched so that the maximum again reaches to 6.

5. Business Unit
Department
Stroke
Colour Size

6.  Every BU has got a Department under it.
 Department means the type of the BU.Suppose for
example Dept T 11 would mean Mens Formal Shirts
under Menswear BU.
 This T 11 would have a Stroke under it which would be
assigned a number like 3152 K.
 This Stroke has Colours like Black,Blue,Red,etc under
it.
 The Colour would again have Sizes under it like
34,36,38,etc.
 There is a Unique Code called Universal Product
Code(UPC) which is attached with that Size.
 Whenever the merchandize product of that size is
sold,the quantity under that stroke would reduce.
When it reaches less than the minimum number,a
trigger is fired at the DC and that product is
replenished from the DC.

8. Stock reaches
Catoons are
the store from the
counted.
warehouse.
Receipt is
signed and If shrinkage
given to the happens,shortage
driver. is informed.

10. Merchandize
Cartoons product is
are opened. replensihed
Excess
stock goes They are put
to the as per the
backstore. allocation.

12. The first and the most important effect would be the reduction in
Shrinkages.As mentioned earlier too,Shrinkages is the reduction in
merchandize products which is received at the store due to
miscounting of the products at the warehouse.
Suppose there are 100 pieces of Men Jockeys which have to go to a
store.Due to miscounting by the workers at the warehouse,only 98
go.So the store receives 2 less which go as the shortage.This
ultimately is a loss for that store and a cost is attached to it.
As of now,the Stock counting is done manually.So time and energy
is utilzed in this.If Scanners are used then the the efficiency and
accuracy during stock counting would improve.
The Profit margin would improve if the logistics under the Supply
Chain is improved.

14. Inward of goods happens at
There is a STAR Team the early hours of the Every merchandized product
associated with the Supply morning(say round about 8 or of any stroke has a definite
Chain which manages the 8:30).It may happen even area alloted to it.It is put in
Merchandize of Supply Chain. before that if the number of that area.
cartoons are more.
Soiled and Damaged(SND)
Every product has a UPC which
products of the stores are
is shown by the barcode.It is
soled in discounts and of Every Sale advisor has got a
unique to the product(of a
those received from the Department.
particular colour and size)
warehouse are returned to the
under a particular stroke.
warehouse(RTW).
Replenishment inside the store
happens on Just in Time(JIT)
The manpower in a store During weekends,all the
basis.That is as soon as a
depends on the time and the merchandize products are put
product is soled from a rack,it
day.In weekends,it is more. on store.
is immediately replenished
from the backstore.