Kirana Store- BPM New
Transcript of Kirana Store- BPM New
BPM CASE STUDY ANALYSISON
OPTIMIZING THE PROCESS IN KIRANA STORES
RETAIL SECTOR IN INDIA
•Retailing in India accounts to 14 to 15% of GDP •Organized (20% annual growth rate) and Unorganized Sector• FDI in the Organized retail to grow•1.1 % of the Kirana store closures are due to tough competition with the organized retail and expected to grow.•Therefore a high alarming situation for the local Kirana stores
Source: ICRIER survey on 2000 Unorganized shops
KIRANA STORE
• Owned and operated on a small scale (500sq.ft. or less)
• Run by the owners themselves thus low operational costs
• Customized services• Good relations with the customers including cash
credit
PROJECT OBJECTIVE
• Empower the Kirana stores to compete with the increasing organized retail space
• This involvesAutomation of the process (Inventory
management and Supply chain management)Online ordering Cartel formationCRM
CLIENTS STUDY
• THE “As Is Process” adopted by the Kirana stores should be known
• Visited the Kirana stores in the Pune areaOm supermarket (Model Colony)Jhamwer groceries (Hanuman Nagar)
Our Methodology
• We visited the Kirana stores and found out their processes
• We also visited the Organized retail stores and found out their processes and tried mapping them with the process of Kiranas stores
• We suggested change in process and automation which
will overcome the identified problem areas and help in growth.
Processes involved in Kirana store
• Customer management and selling
• Inventory and Stock management
• Ordering to suppliers
• CRM
INVENTORY AND STOCK MANAGEMENT
Stock update
Manual accounts Observations Customer
informs
PROCESS FLOW CHART FOR AS IS PROCESS
BPMN DIAGRAM – As is process
S. No. PROBLEM DEFINITION
ANALYSES OF PROBLEM
MEASURE OF RISK
SOLUTION
1. INVENTORY MAINTENANCE
1. STOCK2. EXPIRY3. ORDERS
HIGH
1. DATABASE2. PACKAGING
2. DELIVERY TIME OF THE PRODUCT/COMMODITY
1. SEARCH TIME HIGH
3. SEGREGATION OF ITEMS
1. OLD STOCK2. UNGROUPING
LOW
THE PROBLEMS FACED
S. No.PROBLEM
DEFINITIONANALYSES OF
PROBLEMMEASURE
OF RISK SOLUTION
4. PUBLIC PRESENCE1. ORDERS2. PUBLICITY &
PROMOTIONHIGH
1. Aaramshop.com2. Website3. Just Dial
5. CRM & CREDIT 1. REGULAR CUSTOMERS
VERY HIGH CUSTOMER
DATABASE – birthdays, SMS, Discounts
6. STORAGE1. SHORTAGE OF
SPACE LOWNot Working on this problem as of now
THE PROBLEMS FACED
To be process-automation of inventory process
CRM PROCESS FLOW FOR THE TO BE PROCESS
BPMN Diagram of to be process
SIMULATION OF TO-BE PROCESSIN BONITA STUDIO
Public Presence:
• Collaboration to be done with websites like www.aaramshop.com
• Cartelization can be done between various kirana stores that are present at different locations.
PROPOSED INVENTORY MAINTENANCE SET UP
If the stock is near empty, request for new stock
For the stock near the expiry date ask for replacement
CUSTOMER DATABASE MAINTENANCE
CUSTOMER DATABASE MAINTENANCE
Worksheets –to be processKirana store Automation
Customer order
Taking order
Personal
Telephone
Online ordering
Checking customer database
Updating database
Supply chain Management
Inventory management tool
Checks availability
Checks for expiry
Order for goods
Updating of goods database
CRM
Providing loyalty discounts
Promotion
Benefits Incurred
• Inventory– Stocks will be up to date– Automatic measurement of inflow-outflow– Proactively informs about expiry of stock and hence
helps constant refilling of the shelf on expiry.– Optimized stock handling
• CRM– Create a customer database– Customer credit management– Prolonged Relationship built-up with Customer– Promotional offer communicated using SMS and
website
Benefits Incurred• Order– Increase the visibility with help of website
development
–Tie-up with available online ordering portals like www.aaramshop.com
– Forming an Cartel with Kirana stores in other areas will help reduce the procurement costs and build synergy.