1.Inventory Management & Buying Process Of Retailers Submitted To Pro.Mr. Rupesh Kumar Gupta Submitted BY Arun Kumar Sahu

2. Inventory Management I taken example of wal-mart retail company 3. 3 Inventory Management Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country. With the rapid expansion, it was essential to have a good communication system. Hence, Wal-Mart set up its own satellite communication system in 1983. 4. 4 Inventory Management Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns. Instead of cutting the inventory across the board, Wal-Mart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels. 5. 5 Inventory Management Employees at the stores had the Magic Wand, a hand-held computer which was linked to in-store terminals through a radio frequency network. These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers. 6. 6 Inventory Management The order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system. Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves. 7. 7 Voice-based Order Filling (VOF) In 1998, Wal-Mart installed a voice-based order filling (VOF) system in all its grocery distribution centers. Each person responsible for order picking was provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt. They were guided by the voice to item locations in the distribution centers. 8. 8 Voice-based Order Filling (VOF) The VOF system also verified quantities picked, and could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.) By installing the VOF system, Wal-Mart eliminated mispicks and product labeling costs since the system did not require paper lists and labels to be affixed on the goods. 9. Store Operation & Material Management 10. Providing customer shopping Experience Receiving & displaying goods Recording sales Managing alliance and partnerships Store Administration and management of premises Tasks performed at the store level 11. Significant Areas Of Retail Operations 1. Customer Service and Accommodation. 2. Retail selling Process. 3. Store Staffing & Scheduling. 4. Retail Floor & Shelf Management. 5. Stores Administration & Facilities Management. 6. Warehousing & Supply Chain Management. 7. Loss ( Shrinkage ) Prevention. 8. POS/ Cashiering Process. 9. Visual Merchandising and Displays. 12. Areas of Retail Operation covered Check out Management Stores Administration & Facilities Management Loss ( Shrinkage ) Prevention. Visual Merchandising and Displays. 13. Check out Management Traditional Methods Minimum Cash at cash counters Cash balance to be updated by Computer IT/Skill Management Keeping eye on cashier from distance No authority to cancel Change( Chiller) Management 14. Cash Register Express Cash Register Express (or CRE) is a cost-effective computerized cash register that keeps your inventory costs down, reduces theft and makes more money! CRE is Windows-based POS system exclusively for retail and video stores. Features : Easy to use: Fast lookups by barcode or name Built-in help system Bar-code ready Credit card processing with IC Verify Built-in backup Salesperson tracking Time clock Handles multiple clerks Handles multiple cash drawers Password protection Check out Management 15. Stores Administration & Facilities Management It includes Cleanliness of stores Maintenance of Store Facades & displays Time Keeping of staff Required Permission & Licenses Health & Safety Norms Store Security Insurance 16. Stores Administration & Facilities Management- Insurance Insurance against theft, fire, floods, riots, earthquake, etc. Policy to be carefully formalized to cover all potential risks Insurance for 3 things Building & Infrastructure Inventory Cash ( In store & banking) 17. Shrinkage Prevention Categories of theft - worldwide Health & Beauty products Jewellery & Compact discs Categories of theft - India Chocolates Cigarettes Blades 18. Shrinkage Prevention Ways to prevent Personal Monitoring by Security Personnel Cameras to monitor Use of source tagging Small anti-theft labels are hidden inside a product or packaging by manufacturer 19. Radio Frequency Identification (RFID) Short for radio frequency identification, a technology similar in theory to bar code identification. With RFID, the electromagnetic or electrostatic coupling in the RF portion of the electromagnetic spectrum is used to transmit signals. An RFID system consists of an antenna and a transceiver, which read the radio frequency and transfer the information to a processing device, and a transponder, or tag, which is an integrated circuit containing the RF circuitry and information to be transmitted. Used for inventory management, IT asset tracking, race timing, passports, mobile payments, transportation and logistics, animal identification, museums, libraries etc. 20. Shrinkage Prevention- RFID RFID provides improvement of security. The use of RFID tag to expensive items can provide an outlet with increased security and can drastically reduce shrinkage through theft . It also helps to do a quick and exact inventory account for the items and this significantly reduces the time and labor costs associated with inventory RFID tags can alert security guards if a stock has been suddenly removed by shoplifters Furthermore, security can be enhanced through RFID readers that automatically charge items in a customer trolley to a credit or debit card, thus reducing theft when items are concealed. 21. Visual Merchandising & Displays- Role Planning the VM theme and creating displays Arranging props for displays Arranging display fixtures and lighting Setting up store before opening Working with floor plan and stores requirement Training personnel on sales floor to create display Organizing merchandising units such as racks and shelves 22. Displays Window Displays- Exclusive windows (closed backdrop with a theme and seasonal motif Open windows ( Without backdrop and passerby can see interior of store) E.g. Apparel & Related accessories 23. Displays Brand Corners- For display of exclusive brands or devoted space in shelves or gondolas . Ex. Arrow / Zodiac at Shoppers Stop End Cap Displays At terminal side of gondolas both at entry and exit . Used in book stores Cascade & Waterfall display Ex. for Blazers, Jackets ,etc. 24. PRISM