SUMMER INTERNSHIP PROJECT REPORT

On
Supply Chain management And Store Operation
In
ADITYA BIRLA FASHION & RETAIL LIMITED

Anurag Kumar Pandey

2100520700009
Under the guidance of
Dr. SHILPI JAUHARI
In partial fulfilment of the requirement for the award of the
Degree of Master of Business Administration

Submitted at

DEPARTMENT OF BUSINESS ADMINISTRATION

INSTITITUTE OF ENGINEERING AND TECHNOLOGY
JANKIPURAM LUCKNOW, UP-226021

1|P ag e
 STUDENT DECLARATION

I undersigned, hereby declare that the project titled Study on Supply chain
management and store operation submitted in partial fulfilment for the award
of Degree of Master of Business Administration is a bonafide record of work
done by me under the guidance of Dr.Shilpi Jauhari. This report has not
previously formed the basis for the award of any degree, diploma, or similar
title of any University.

Place :Lucknow
Date :

Signature of the Student

Anurag Kumar Pandey
21005207000009

2|P ag e
 CERTIFICATE FROM INSTITUTION

This is to certify that Mr. Anurag Kumar Pandey, third semester student of
Master of Business Administration, Institute of Engineering & Technology,
Sitapur Road, Lucknow has completed the project report entitled Study on
Supply chain management and store operation in partial fulfilment of the
requirements for the award of the Degree of Master of Business Administration.

Date:
Place: Lucknow

Dr. Shilpi Jauhari

Convener

3|P ag e
 CERTIFICATE FROM FACULTY GUIDE

This is to certify that Mr. Anurag Kumar Pandey, third semester student of
Master of Business Administration, Institute of Engineering & Technology,
Sitapur Road, Lucknow has completed the project report entitled Study on
Supply chain management and store operation towards partial fulfilment of
the requirement for the award of the Degree of Master of Business
Administration under my supervision.

Date:
Place: Lucknow

Signature of the Faculty Guide

Dr.Shilpi jauhari

4|P ag e
5|P ag e
6|P ag e
 PREFACE

As a part of our course curriculum and in order to gain practical knowledge in

the field of business management, we are required to develop an innovative
idea for product or services in form of a project report. The following report
consists of importance and relevance of research on industry, its feasibility
and detail descriptions.

The title of the product I’ve prepared a report on is “Study on Supply chain
management and store operation "

I want to express my gratitude for the experience and practical

knowledge that I earned during the summer internship project report
preparation. In this report I had presented my innovative ideas in the
form of words.

The project flows logically consisting of a questionnaire, I hope that the

findings and the suggestions will bring the product into existence. I have
enjoyed my report preparation and have learnt lots of new things. I have
tried my level best to make this report a reader friendly and also did my
level best to fulfil the objective of the study.

7|P ag e
 ACKNOWLEDGEMENT

No project repot ever reflects the efforts of a single individual. The report
owes its existence to the constant support and guidance of people. I am
grateful to all of them.

I would like to express my deepest gratitude to Honourable Director Dr.

Vandana Sehgal , who has provided me with every facility to successfully
carry out this project, and my profound indebtedness to Dr Virendra
Pathak,course coordinator, IET Lucknow, whose unfailing support and
enthusiasm has always boosted up my morale.

I also thank Dr Shilpi Jauhari, Convenor, Faculty of IET Lucknow, for giving me
a chance to work on this project.

I would also like to thank my Convener Dr. Shilpi Jauhari for his continuous
encouragement for betterment of the project

It is their help and support, due to which we became able to complete the
design and technical report.

Without their support this report would not have been possible.

I owe a never-ending debt of gratitude to Dr. Shilpi Jauhari for their expert
guidance and support.

I would like to thank all the respondents for giving their valuable time and
providing useful information.

8|P ag e
I am also grateful to all those who have either directly or indirectly
contributed toward the completion of the project, for their support and
encouragement.

9|P ag e
 TABLE OF CONTENT

CHAPTERS CONTENT PAGE No.

1.1 Introduction
I

1.2 company profile

II 2.1Research Methodology

2.2 Problem statement

2.3 Objective of study

2.4 Significance of the study

III 3.1Data Analysis & Findings

IV 4.1 Limitation

4.2Conclusion

4.4 References

10 | P a g e
 CHAPTER I

INTRODUCTION

Aditya Birla Fashion and Retail Limited (ABFRL) is an Indian fashion

retail company headquartered in Mumbai. ABFRL has a network of
3031+ stores with a presence across 25,000 multi-brand outlets(approx.)
with 6,500+ point of sales in department stores across India. ABFRL was
previously known as Pantaloons Fashion & Retail Limited prior to its
acquisition by the Aditya Birla Group.

ABFRL is part of a leading Indian conglomerate, Aditya Birla Group.

Spanning a retail space of 8.4 million sq. (as on March 31, 2021), Aditya
Birla Fashion and Retail Limited (ABFRL) is India's fashion powerhouse
with an elegant bouquet of leading fashion brands and retail formats.
ABFRL brings together the learnings and businesses of two renowned
Indian fashion icons, Madura Fashion & Lifestyle and Pantaloons creating a
synergistic core that will act as the nucleus of the future fashion businesses
of the Aditya Birla Group.
As a fashion conglomerate, ABFRL has a strong network of 3,212 brand
stores across the country. It is present across 31,000 multi-brand outlets
and 6,800+ point of sales in department stores across India.
It has a repertoire of leading brands such as Louis Philippe, Van Heusen,
Allen Solly and Peter England established for over 25 years. Pantaloons is
one of India’s largest fast fashion store brand. The Company also holds
exclusive online and offline rights to the India network of California-based
fast fashion brand Forever 21. The International Brands portfolio includes -
The Collective, India's largest multi-brand retailer of international brands,
Simon Carter and select mono-brands such as American Eagle, Ralph

11 | P a g e
Lauren, Hackett London, Ted Baker and Fred Perry. Van Heusen Innerwear,
Athleisure and Active wear is establishing itself as India's most innovative
and fashionable brand. Apart from Jaypore and Shantanu & Nikhil, the
Company closed two additional strategic investments with Sabyasachi and
TarunTahiliani, expanding its horizon in branded ethnic wear business.

Aditya Birla Fashion and Retail Ltd.

Type Public

Traded as BSE: 535755

NSE: ABFRL

Industry Retail

Founded 1997

Headquarters Mumbai, Maharashtra

India

Area served India

Key people Ashish Dikshit (MD)

Products Clothing

12 | P a g e
 Revenue ₹8,131.95 crore (US$1.0 billion)
(2022)[1]

Operating income ₹80.73 crore (US$10 million)

(2022)[2]

Net income ₹−108.7 crore (US$−14 million)

(2022)[2]

Total assets ₹9,765 crore (US$1.2 billion)

(2020)[2]

Total equity ₹249 crore (US$31 million)

(2020)[2]

Owner Aditya Birla Group (56%)

Number of 25,000+ (2020)[2]

employees

Parent Aditya Birla Group

Website www.abfrl.com

13 | P a g e
Company Profile

Pantaloons in India’s fast growing premium lifestyle Apparel company

.with innovative designs, concepts and product, the company brings the
latest trend in fashion and clothing style to the apparel market.

The company offers an incredible and complete one- stop shopping

experience to its buyers through its vast collection of many prestigious
brands to make the customer more fashionable. The 81 aesthetically
designed stores across the country
display a range of classy and trendy merchandise that truly lives up to
Pantaloons maximum of “Fresh Fashion”. Normally a typical Pantaloons
store is spread across 28,000 sq. ft, comprising a brand portfolio that turns
across a wide gamut of styles that spell class. The collection includes
Western, ethnic wear of women, formal and casual for men, kids, fashion
jewelry etc.

The women's section houses the private labels-Honey, Annabelle, People,

Ajile, Dreamz, Bare Denim and SF Jeans in Western wear, as well as the
ethnic wear from Rang Manch, Akkriti, popular brands like Biba, W, global
desi and Aurelia.

Pantaloons is a playground where we enjoy the privilege of serving our

customers to enable their fashion journey. We strive to make shopping a
playful, joyful & engaging experience for our customers by helping them
take steps towards being their fashionable best.
With over 24 years of retailing experience, Pantaloons, a division of Aditya
Birla Fashion and Retail Ltd. is one of the most loved fashion brands in
India with 344+ stores spread across 170+ towns and cities in the country.
We offer a versatile collection & retail over 100 licensed and international
brands, including our exclusive in-house brands.

14 | P a g e
At Pantaloons, we bring you 'of-the-moment' fashion across stylish
menswear, statement womenswear, happy kids wear and elegant
accents for your home too. We showcase casual fluently, are experts of
ethnic wear, boast of a strong workwear ethic and live for all the fun
through our party wear.
We strive to make the Pantaloons experience exciting, friendly &
uplifting. We believe in going that extra mile to make our customers look &
feel great and express themselves with confidence and élan.

15 | P a g e
History of Pantaloons

The first Pantaloons store was launched in Gariahat, Kolkata in 1997.

There are 344+ store spread across 170+ towns and cities. Pantaloons was
previously controlled by future group but now it has been taken over by
Aditya Birla Nuvo Limited. In Eastern zone are 17 store of Pantaloons are
established. Pantaloons launches its third store Saharjunj at Hazratganj in
Lucknow

The BSE stock code of Pantaloons is 535755.The NSE Stock code of

Pantaloons is PFRL. since its inception, Pantaloons progressed from
retailing just a mix of brands to its very own popular private labels as well
as, designed by the in-house design Studio, with a Sharp focus on bringing
the latest in fashion, the design Studio combines its progress, in design to
present styles that keep the consumer fashionably dressed each section.

16 | P a g e
 Pantaloons always focus on the latest trend for which now Pantaloons is
one of the best retail store in India. It always put emphasis on the latest
demand of youth and provide according to that needs .It covers all kinds of
customer starts from ethnic to western wear, party wear to formal, kids
wear, fashionable jewellery, hand bags etc.
It always focuses on the display of the store for this purpose one VM is
there who will take care of the display area. Moreover Pantaloons has a
nice culture it always take care of their employees. Though it is a standing
kind of job for the seller so they always arrange some relaxation activity for
the employees. For the employees there is a fun zone where the employees
can play many indoor games, can watch television for their
refreshment.They observe all the festival in between employees which
makes the employees more familiar to the Organization.

Before opening the store they all gather at the hall for the purpose of pray
and there they promise to themselves,“that they will give their best today
to make the organization more productive.” They obey the rules and
regulation of Pantaloons like grooming standard, checking of the
employees, attending customer in a polite manner etc.All the staff
arechecked at the exit point of the staff, this rule is for everyone that may
be the Fourthgradeemployee or may be the store manager.

17 | P a g e
18 | P a g e
Pantaloons in House Brands
 Rang Manch
 Trishaa
 Akkriti
 Annabelle
 Honey
 Bare Denim
 Ajile
 Sf Jeans
 Bare kids
 Indsrudu
 People

Pantaloons in non- house Brands

 BIBA
 AND
 Global Desi
 W
 Allen Solly
 Louis Philippe
 John Miler
 Levis
 Streat Armor
 Urban Ranger
 Aurelia
 Byford
 Duke
 Dremz
 Monte Carlo
 Peter England

19 | P a g e
RETAIL INDUSTRY IN INDIA
Indian retail industry has emerged as one of the most dynamic and fast-
paced industries due to the entry of several new players. It accounts for
over 10% of the country’s gross domestic product (GDP) and around 8%
of the employment. India is the world’s fifth-largest global destination in
the retail space. India ranked 73 in the United Nations Conference on
Trade and Development's Business-to-Consumer (B2C) E-commerce
Index 2019. India is the world’s fifth-largest global destination in the retail
space and ranked 63 in World Bank’s Doing Business 2020.

The sizeable middle class and nearly unexplored retail market in India
are the main enticing factors for international retail behemoths seeking to
move into newer markets, which will help the Indian retail business grow
more quickly. The urban Indian consumer's purchasing power is
increasing, and branded goods in categories like apparel, cosmetics,
footwear, watches, beverages, food, and even jewellery are gradually
evolving into business and leisure that are well-liked by the urban Indian
consumer. The retail sector in India is expected to reach a whopping
US$ 2 trillion in value by 2032, according to a recent analysis by the
Boston Consulting Group (BCG).

India is the world’s fifth-largest global destination in the retail space. In

FDI Confidence Index, India ranked 16 (after US, Canada, Germany,
United Kingdom, China, Japan, France, Australia, Switzerland, and
Italy).

20 | P a g e
CHAPTER II

RESEARCH METHODOLOGY
Research methodology is to discover answer to question through the
Application of scientific procedures the main aim of research is to find out the
truth which is hidden and which has not been discovered as yet. Marketing
research is the careful analysis of a business situation by scientifically analyzing
it and using various statistical applications to the subject of study.

Research is the process of finding a solution through the use of scientific tools
and techniques. Marketing research is a methodical and purposeful study
conducted to obtain solution for specific marketing problem.
As far as method is concerned, I preferred personal interview or face to face
meeting to ensure accurate information and encourage frank response to
questions. At the same time telephone or mail survey was not possible.

While framing the questionnaire, I tried to list a series of question, which could
elicit the needed information for proposed study. Questions, which were of no
particular value for the study objectives, were not included. I also tried to keep
in mind the respondents' understanding capacity, ability to recall the
information and his experience limits.

21 | P a g e
Problem statement

To find out the level of supply chain managementand operations of the

store who buys goods in pantaloons. In this booming retail, retailing has

altered the fortunes of many businesses worldwide.

The purchase of goods and services includes a number of factors that could

affect each decision.There is a widespread recognition that consumer behavior

is the key to contemporary marketing , scm success.

22 | P a g e
 OBJECTIVE OF STUDY

 To study the operational processes at Pantaloons.

 To study about the Supply Chain Management in general and at

pantaloons in particular.

 To understand the significance and importance of supply chain in retail.

 To study the inventory, its characteristics, types and importance.

 To study the scenario of retail sector in India.

 To study the supply chain of pantaloon India Ltd.with a special emphasis

on the day to day problems encountered at their SCM department and

suggesting them solution to all the problems.

 This study tries to find out what resources the organization should

determine and provide to enhance SCM process.

23 | P a g e
 SIGNIFICANCE OF STUDY

Fundamentals of Suppy Chain Management

Supply Chain Management (SCM) is essentially integrating suppliers to the end
consumers and emphasis the need for collaboration to optimize the whole
system. The basic aim of any SCM function is to make the organization more
agile and nimble footed to respond to drastically changing consumer
preferences by capturing the data of material flow at all levels of the value
chain.

Retailers today face many challenges because of greater product variety,

shorter product life cycles cause's greater fluctuations in demand and calls for
high responsiveness in supply chain and due to which need Of shorter lead
time continues. In retail transactions must be smooth, timely and accurate.
When one is dealing with a complex function such as retail it is very essential
that we have a strong supply chain for better responsiveness and cost
effectiveness.

An effective supply chain management system can provide a 360 degree

feedback to the retailer as well as to the manufacturer about the popularity
and complaints of any particular product.

Provide valuable insights on inventory and guidelines on merchandise

allocation. It also increases visibility of stock sales and consumer demand
throughout the supply chain. Facilitates collaboration and communication for
improving relationship with supplier.

As Pantaloon Retail believes in value retailing so it is very essential that our

supply chain is very strong because We only make money when we reduced

24 | P a g e
our cost and supply chain is the only area for maximum Cost reduction either it
is purchase in bulk or it is better

logistics we only win if we are able to decrease our cost and response time.
An efficient supply chain is working something like that it is given in the above
figure:

ENDO

[WAREHOUSE

RETAIL STORE

CUSTOMER

There are 5 essential areas for the success of any retailer in the supply chain
and out of these 3 are logistical functions. These are:

• Warehouse (Facility)
• Inventory Management
• Transportation
• Information Flow
• Technology
•
• This Is The Process Of Pantaloon Retail India Ltd

25 | P a g e
 Warehouse
Warehouse is the location to or from which the inventory is transported.
Warehouses are the key driver Of supply chain performance in terms of
responsiveness and efficiency. Before deciding the location Of Warehouses we
must consider the following points:

• Location of our stores

• Rent of the location
• Format of our retailing

Now a days warehouse is treated as switching facilities rather than storage

place and companies try to move stock from the warehouse as soon as
possible to reduce the inventory handling cost, for higher inventory turnover
and for shorter cycle time It is a major cost center, many customer problem
are the direct result Of improper warehousing management.
Major decision of warehouse is as follows.-
Facilities in the warehouse, Warehouse layout, Design of building, Ownership
of the warehouse, Connectivity.

Warehouse's performance is judged by customer's satisfaction and by lower

cost of operation.

Warehousing Function
Material Storage Function, Material Handling Function, Information Handling
Function.

Material storage is required to accommodate the following functions:

Holding, Consolidation, Break Bulk, Packing, Mixing.

Loading & unloading, Material Movement, Order filing.

Information handling function

1. Goods inward, Inspection & auditing, Goods outward, Excess

26 | P a g e
Stock , Warehouse

2 . Expenses, Transit damage & Breakage. Pantaloons try to locate its

warehouses very near to the stores as we see there are many warehouses in
the NCR area like to cover Delhi stores there is a warehouse in Wazirpur, for
Noida and Ghaziabad regions stores company started a new warehouse in
Dadri which is very near from both the cities and for Gurgaon there is also a
warehouse so company try to decrease its response time for better customer
service and as Pantaloon Retail concentrate more on value retailing so it is
more important that company focus on economies on scale and purchase in
bulk and this requires more warehouses.
3 .The function Of providing warehouses is outsourced to Indo Arya which
is one of the best companies in India in the field of logistics. In some places like
in case Of HSRIL warehouse in Dadri Pantaloon outsource the whole logistics
function to Indo Arya. Dadri warehouse Of the company is provided by Indo
Arya and it is a CWC warehouse. Connectivity is very good from this
warehouse because it is located on the GT road and it takes hardly 1 hour in
transporting stock to the Noida and Ghaziabad

stores. There is plenty of space inside the WH for parking and movement of
vehicles. WH it divided into 3 sections of nearly 30,000 sq. ft. each out of which
1 section handling the inventory of HSRIL format and hold furniture and home
improvement merchandise, 2nd section carry general merchandise and
sanitary items and 3rd one is for pantaloons. In case of Wazirpur warehouse
there are 3 floors on the ground floor unloading and loading is done.

27 | P a g e
 Inventory Management
Inventory exists in the Supply Chain Because of a Mismatch between Supply
and Demand. Inventory is the major Source Of cost in the Supply Chain. The
figure given below shows how the effective inventory management is work.
This figure shows that there must be some inventory level we must manage for
efficiently fulfill the demand Of customers and we must out the inventory in
time so that we are able to send the stock in stores in time and the damage
stock is also Out from the WH so that we maintain a good inventory level.

Transportation
Transportation is defined as the physical flow of material and finished goods
from point of origin to point of use to meet customer's need at a profit. It is
essentially a planning process and an information activity so an integrative
process that optimizes the flow of material and supplies through the
organization and its operations to the customer.
It is of critical importance to the organization how it delivers products &
services to the customer, whether the product is tangible or intangible.
Effective & efficient Physical movement of the tangible product will speak of
intangible services associated with the product and the organization which is
delivering it.

28 | P a g e
In Case of intangible product, the delivery of tangibles at the right place & right
time will speak about its quality. India spends nearly 12% of its GDP on
logistics.
India spent nearly $ 50 billion to move material from one use to another.
Any good transport service is that which provide:
•Reliable and consistent delivery performance
•Freight economy
.Minimum product damage
Pantaloon outsourced its transportation services to the third party which is
Indo Arya. So in this case all damages all responsibility is of transportation
service. Company must provide the required vehicle on time when WH
requires it.

Information Flow
Information serves as the connection between various stages Of a supply
chain, allowing them to coordinate and maximize total supply chain
profitability. It is basically information based activity of inventory movement
across the supply chain. Hence role of information system plays a vital role in
delivering superior customer service This function is required to facilitate the
following information needs:
• Order Registration
• Order checking & editing
• Order processing
• Coordination means to integrate the total supply chain of the company
with informational needs as to time, quantity, value e.g. Lead time, rate of
consumption, delivery schedule & price of the material, Transportation time &
cost etc.
Flow of information is very essential to know the exact requirement of
stores, to know consumers preferences, to know the inventory level in store
and in warehouses.

29 | P a g e
 Technology
Better flow of information is only possible with the use of latest technology
and that is the reason because of which companies invest so much on new
technology like RFID, ERP software etc.
Pantaloon is also understand the importance of information and technology
and so company implement ERP software for making supply chain better.
Pantaloons using SAP which is one of the most successful ERP. With this
software sharing of information is much easier because we can see how much
inventory is available in the WH and placing STO according to that. Making
STO, Pick list and GRN is also very easy and fast with the help of SAP.

Pantaloon also implements RFID in its Tarapur warehouse on some categories.

30 | P a g e
CHAPTER III

DATA ANALYSIS & FINDINGS

INWARD PROCESS IN WAREHOUSE

In warehouse when stock comes from the vendor site or from central
warehouse then the following procedure is used for inward of stock in
warehouse:

1. Documents check:
This is first and one of the most important steps of the in warding procedure
because if any warehouse inwards the stock in warehouse without check the
proper documents then it creates a big trouble for the organization. It may be
possible that the stock which come in the warehouse is not belong to that
warehouse or proper taxation is not done by the vendor for that stock so
proper checking of documents is must. Security guard and the person
responsible for stock unloading checks documents before allow the stock to
enter in the WH.

If stock comes from central WH, any other WH or from any store then
following documents are checked by the security staff:
1.1 Stock Transfer Note (STN) staff checks whether this STN belong to
this WH or to any other.
1.2 Transporter waybill which is different in different in different
states and somewhere it is also not require this bill proves that this
stock is legal and sales taxes are paid for this stock.
1.3 Gate pass which confirms that stock comes out from the store or
WH with the permission of responsible person

STOCK TRANSFER ORDER (STO)

Stock Transfer Order (STO)/Stock Transfer Note (STN) are the document which
is used for transfer Of stock WH and stores. At the store level STO is raise by

31 | P a g e
DM's of there respective department. STO is also required for the movement
Of stock from one warehouse to another or from one store to another. We can
Say that all the movement Of stock within the organization is takes place with
the help of STO.

STO MO remeni

If stock comes from vendor's site then security checks the following
documents: 1.1 Purchase Order (PO) whether this PO is for this WH or not
and security also check the expiry date of PO. 1.2 Invoice (Bill) which specifies
what qty. vendor sends and what price vendor charge from company.
1.3 Delivery challan which is the proof of payment of sales tax.

PUCHASE ORDER (P.O.)

Purchase Order(PO) which is only raise for the vendors/suppliers and this PO is
only raise by the Front End Category Team from the Zonal Office or from Head
Office and it is also raise by stores and in stores it is raised by Department
Managers. PO from the store level is only raise for the local vendors and
vendors deliver stock directly to the stores. When DM's of the stores raise PO
then most Of the time it first goes to category team and then category team
pass it to the vendors. In case when category team raise the PO then it
considered the requirement Of the stores which is sent by the DM's to the
category team and then category team make PO for vendors and decide
whether stock goes to WH or directly to the stores.

32 | P a g e
 WAREHOUSE
VENDOR

STORE
{'.0 Movemel!!.

P.O. FORMAT

33 | P a g e
l.lnloading and counting of cartons:
After checking the documents stock is unloaded from the vehicle under
inspection of responsible person and security staff. Securities counts the
cartons and see that cartons are packed properly if there is any carton which is
open or not in proper condition the security put remark on the documents.

1. Entry in security inward register:

After proper unloading security staff enters the details of in warding in security
inward register. The format Of inward register is given below:

2. Stock Count and Check:

After the entry of stock in the register this is the time to count the stock
manually or by the help of SAP and employee also check for any damage in the
stock that the WH get and if they find any difference between the quantity
mentioned in invoice and the actual quantity they get or if there is any damage
product, any part missing or any bar code problem then they write that
information on the invoice of the vendor and pass it to the concerned person
Of the WH.

3. Entry into SAP:

Now after counting the stock if counting is done manually then the stock is
entered in the SAP by scanning each and every product for the better visibility
of stock across the supply chain. If there is any problem in bar code like it is not
read by reader because of any scratch on bar code or bar code is not on the
merchandise then the person try to find out its article code by matching that
product with other product of same characteristics like a shirt Of same color,
same size and same brand has common article code and when they find any
such merchandise then they enter its article code in the SAP manually and if

34 | P a g e
they don't get any merchandise then they put it away and inform the vendor
about this type of product.

Warehouse Storage process

Storage is also the most important part of the warehouse because we can not
store all the stock in store due very high property rents and every Sq. ft. of
space is very costly in the regions where stores are located and proper storage
is also essential in WH to avoid damages and for fast processing. In storage
process when stock is enter in the SAP then it is moved to there respective
section which are arranged according to there category or MC code.

Every item put in WH according to its type and the way it moves out from the
WH like clothes are put in bins and racks for fast movement of stock as they
are easy for pick when they are put in

50
racks. For Big items like consumer durable and furniture there is no
requirement of racks because they are put on the floors and if they are put in
racks them it is also hard to put them in racks. At what location any item is
placed is also decided because it is not good to move glass items for a large
distance so they put near to out gate.

35 | P a g e
 Warehouse Outward Process
1. STN is drawn from SAP:
The movement of stock from the WH to the different stores or to other WH is
know as stock transfer for this purpose store/WH raise a Stock Transfer
Note(STN) for WH according to the requirement of store/WH and WH person
takes this STN from SAP.

2. Check availability of stock through SAP:

Before take the printout Of STN that person check that is there any other store
which send the requirement of the same product if so then WH employee
divide the stock between the stores according to there requirement so that no
one get stock out for that material.

3. Pick list is made according to the STN:

After checking the availability of material WH person generate pick lists
according to the category or according to MC code of the category like there is
separate code for men's jeans and separate MC code for ladies jeans and
merchandise is put in the WH according to there MC code so that it is for the
employee to pick the merchandise.

4. Employees pick items according to the pick list:

Now the pick list is given to the employee which are responsible for pick the
merchandise and they take that pick list and as they know where this particular
product is placed so they go to that section and pick the items according to the
article code which is write on the bar code of the product and put it on the
conveyor or in a blank carton and take it to the section from which outward is
done.

36 | P a g e
5. Items are scan through the SAP:
When pick stock reach to the outward system the person at the outward
system enter STN NO./Delivery NO. and Handling unit which is L2000 for
outward in the SAP and then scan each item one by one and if any item which
is not belongs to that STN then a red light is blink in the bottom of SAP window
and the person put that item away and tells the persons those pick the item
that this is not the right product and the employee again search for right
product and when all items get scanned then they pack the cartons for
dispatching and put the right tag for the store and STN no. on the cartons.

37 | P a g e
 Deliv v ti ti 6
Before dispatching
the stock to stores
for some product a investigation is required to confirm that the dispatch item
it in good quality and it is not damaged this process is generally for big product
like furniture items, electronics items etc. In this process employee check for
any defect in the product and if there is any such problem they found in the
product then WH does not dispatch it to the store.

7. Stock is packed:
When stock is put in the cartons then it is the time to pack these and packaging
staff pack the cartons with the sheet Of polythene so that cartons are not
opened easily and sometimes there are some damaged cartons also prevented
from opening during transportation by this process.

8. Documentation:
When stock is packed then the WH person does the proper documentation for
hassle free movement of goods. Employee put the STN with gate pass which is
very essential for outward movement Of stock without which security does not
allow to pass the stock outside the WH and a document is also attached for
sales tax purpose which is different for different states like if stock is moved
inside the

UP them an OC stamp is very essential with the document or if stock is comes

in UP from outside then form 31 is required without these documents
movement of stock is illegal.

9. Outward Entry Register:

After seeing the required documents security person make entry into his
register for the outward stock. The format of outward register is like this:

38 | P a g e
10. Dispatch of stock:
For dispatching the material to the store the employee of the WH tell the
transporter about the requirement of the vehicle in advance so that the
transporter arranged the vehicle on time for dispatching the material

39 | P a g e
40 | P a g e
 Outwarding Of Damaged/Defective Goods

In warehouse most Of the times vendors does not take their damage stock
back so in this case it is placed in the warehouse but there is no use to handle
this damaged stock so WH send it back to the vendor and for sending it back to
the vendor a reverse or outward is Purchase order (RPO) is made and stock is
outward from the warehouse on the basis of this RPO.

OUTWARD/REVERSE PURCHASE ORDER (RPO)

Reverse Purchase Order/Outward Purchase Order (RPO) is the required for the
movement of stock from WH to vendor or from store to vendor. RPO is
required Only in case Of defective/damaged stock when it is required to move
back to vendor. RPO is made by warehouse incharge in WH and by SCM
executive in the store

WAREHOUSE

STORE

Order

41 | P a g e
 Inward Process in Stores

1. Documents check:
This process is same as that of WH security staff checks STN,
Delivery Challan, and Gate Pass when stock comes from WH and PO, Delivery
Challan and Invoice when stocks comes from supplier.

2. Unloading and counting of cartons;

This step is also same as that of WH

3. Stock count and check:

This step is somewhat different from WH because in case of store the process
of counting and checking of stock from any damage is very fast in comparison
to WI-I. In store the shortage and damages that are found in write on the
documents which are send to vendor at the same time after counting and
damage material is try to dispatch from store as soon as possible because of
space problem.

4. Entry in security inward register:

After counting security enter the inward stock detail in security inward register
for future requirement. The format Of security inward register is given below:

5. Stock move to store warehouse:

42 | P a g e
After counting and entry in the inward register stock is moved to the
warehouse Of the store

6. Entry into SAP:

When stock moved to the warehouse then it is the time to enter the stock in
the SAP so that it is moved to shelves because

61

without entering the stock in SAP it is not recognized by billing counters for
that reason after entering stock into SAP it is also entered into REM which is
used at cash counters. Store WH persons scan each product one by one and
enter it into SAP. In case of food bazaar there are many items on which there is
no bar code and the content of product bar code is not match with the food
bazaar bar code so sometimes bar codes are also attached on the products in
the store also and sometimes stores call the vendors and they put the bar
codes on the products according to store requirement.

7, Discrepancy note is made;

After counting and entering stock in SAP this is the time to make a discrepancy
note which tells the difference between invoice/STN and actual qty. and one
copy Of this discrepancy note is send to zonal office, one to vendor. The overall
process of making discrepancy note is same as that of WH.

8. GRN is made: Making GRN is also same as that of WH and the documents
are send to zonal office.
Storage Process in Stores

43 | P a g e
When the GRN Of the stock is ready and it also scan in SAP and moved to store
warehouse then it is the time to move it to the shelves as soon as possible
because a store can not hold the stock for too long because of the less space
availability so it is better that respective departments move there stock from
WH to shelves so that more stock comes in WH. Decision of shelves
replenishment is taken by Department Managers they decide on what basis
stock is moved in the shelves. The employee of the respective departments
checks the availability Of stock in shelves daily basis and if some shelves are
empty then they fill it with merchandise this is a regular process and special
attention is paid on weekends because there is more risk in stores in these
days. Stock movement is much faster in case Of Food bazaar because most of
the items are perishables and these are comes more frequently in the store
and more space of warehouse is given to Food bazaar.

44 | P a g e
Outward Process in Stores

1. Get permission from DM or SM:

For moving any stock out of the store the SCM department first gets the
permission from the store manager or from the department manager of the
same department from which the stock is taken for Out warding. DM only
decides which stock is dead and when it will be sent back to warehouse or
vendor. But in the case of defective items SCM executive Of the store decide
when this stock is out from the store.

2. Stock is packed for outward:

After get permission from the DM or SM back end department persons
collected the stock from warehouse and packs it properly for dispatch.

3. Outward or reverse PO is made:

When stock is packed a PO is made by SCM executive which is known as
Reverse/Outward PO which is used when stock is sent back to vendor and if
stock is dispatch to warehouse then only
Stock Transfer Note is required.

4. Other documents are made according

requirement:
With RPO/STN Other documents are also required for Out warding the stock
from warehouse and these is Gate Pass, OC stamp/waybill which depends on
where you send the stock. 5. Security check and outward register entry:
Before allow stock to move out from the store security on the out gate check
the gate pass and count the no. of cartons according to the gate pass.

Good. Inv.
pas Date

6. Stock transferred to warehouse or to vendor•

After security check stock is loaded on the vehicle which is arranged by the
company transporter.

45 | P a g e
 SHORTAGES AND DAMAGES OF INVENTORY

Shortages and damages in inventory occur at many points in the whole

supply chain. It occurs from:

• Vendor to warehouse
• In warehouse
• From warehouse to store
• In store

At all the places they occur due to some different regions so we discuss all
these in detail. I divide shortages and damages into

two categories one when it occurs in warehouse and other when it occurs in
store.

The fig. A which is given below is show how the stock is moves in the supply
chain but the fig. B gives the movement of stock when there is somse damage
or shortage at the various points in the supply chain.

Fig. A

Fig. B

46 | P a g e
I-A: denotes the two way flow of stock from vendor to WH and
WH to vendor in case of damaged/defective stock.

2. B: denotes the movement of stock from WH to store to WH stock moves

from store to WH in case when some stock is not sale in the store or out of
season stock or damaged/defective stock.

3. C: denotes the movement of merchandise from store to customer and

customer to store when customer finds any defect in the merchandise.

4. D: denotes the movement Of stock directly from vendor to store and

also when store sends stock back to vendor due to some defect.

5. E: shows the movement Of stock directly from WH to customer because

most Of the home deliveries in case Of consumer durables and furniture
fulfilled from WH.

6. F: is the movement of stock from one WH to another.

7. G: denotes the movement of stock from one store to another because if

any merchandise is not saleable in one store then it transfers to another.

47 | P a g e
48 | P a g e
SUGGESTIONS AND RECOMMENDATIONS FOR SHORTAGE &
DAMAGES IN WAREHOUSE
I. Shortage against PO:
Vendor/supplier sends stock only after they received Purchase Order from
category team or from the store according to the quantity that is demanded in
the PO but
sometimes category team or store wants that stock mentioned in PO is not
seen din bulk by the vendor they instruct vendor that stock is send in 2 or 3
consignment because of the space constraints so it is easy for WH and store to
hold the stock. But this is not the problem the real problem starts when WH
and stores want full stock mentioned in PO but vendor does not supply
complete stock. When this situation arise then there is a shortage in the WH
and it is not able to fulfill the demand of the different stores and ultimately
there is a shortage in the stores and customer not find the required product in
the stores.

Suggestions:
This problem is very critical and some of the possible solutions for this problem
are that the management applies deduction management techniques for
solving this problem. If any vendor is not able to fulfill our demands then
company must deduct some amount from the bill of retailer as a penalty for
not fulfilling the demand. Company selects minimum two vendors for any
specific category of product so that if any vendor is not able to fulfill the
demand then we may switch to another one. Company should mention clearly
the terms about deduction and return in the agreement held with the vendor.

49 | P a g e
 2. Shortage due/theft during transportation

When WH get stock from supplier then the first thing that is done after
documents check is counting of stock and this is most important because most
of the time the actual quantity does not meet with the quantity mentioned in
the invoice (bill) and there are various reasons for this difference like
sometimes there is a counting mistakes during packing of stock at vendor site
but the most critical problem is theft during transportation by drivers and
when stock reach to the WH/stores then there is discrepancy in the stock.
As company is not responsible of this loss this is the problem of vendor and his
transporter company does not borrow that loss the real loss of company is only
in terms of shortage that occurs due to theft.

Suggestions:
Many times it is happen that counting of stock is not done just after unloading
of stock it is done some time after so if there is a shortage in stock then it is
hard to convince the vendor on this issue because vendor sends the right
quantity but we don't get the qty. according to invoice so to eliminate these
kinds of issues counting must be done at the same time and a note is write on
the vendor copy of bill so that vendor know that we get less quantity. Security
must check at the time of unloading that cartons are in good condition and if
there is any damage in cartons then security staff must note it.

50 | P a g e
3. Damages during transportation
from vendor to warehouse

We all know the condition of Indian transportation and about the worst
condition of Indian roads. Roads are not only the problem drivers are also the
create problems many times because they do not take their work seriously and
alcohol is the major problem of Indian drivers and sometimes it is very
dangerous for the stock they carry and also for many lives. If we talk about
only roads then many times the stock get damaged due to bad condition Of
roads and it is very hard to transport breakable items like glass and crockery
items and in addition to this if drivers do not drive carefully then it also
increase the chances of damage.

Suggestions:

When stock comes from vendor to WH and during this journey if any stock is
damaged then it is totally the liability of vendor but we must see that the stock
which we get in the WH is good in condition so we must check the stock
properly and if any damaged is found in the stock we send it back to the
vendor as soon as possible because if we inform them late then vendor think
that damages occurs in the WH. We instruct our vendors that stock is packed
properly.

51 | P a g e
4 . Shortage due to unavailability of finding material in Warehouse:

When stock comes in the store it first entered in the SAP and a GRN is made
and after that every one in the company sees the stock level in the warehouse
through SAP. Stores raise STN after see the stock level in the warehouse
through SAP but there is also a problem because when WH get stock transfer
order from stores then a pick list is made and employee pick stock from the
warehouse according to that list. Employee pick stock according to the article
code print on the pick list they just go in the respective section and find the
mentioned article code which print

the bar code attached with article but sometimes employee does not find
some articles mentioned on pick list in warehouse. There are many reasons for
this problem either because article is not placed at its proper location during
inwarding or due to wrong entry in the SAP during inwarding and this creates
shortage in stores because WH is not able to meet the demand of store.

Suggestions:
To solve this problem first we must train our employee about the method
according to which we put the stock in the racks and also tell them where is
the particular category is placed and try that the employee who put the
merchandise in any section in the WH is responsible for picking merchandise
from that section only. We must use Bin cards in the WH as they are not used
in many When Article No. is properly printed on the bar code tags.

52 | P a g e
5. Damages in the Warehouse:

Warehouses are made because it is hard to for stores to carry much stock
because stores are located in areas of very high property rents and every Sq.
ft. of land is very costly and company try to maximize the usage of this area
and it is very hard to transfer stock from different vendors to different stores
and that is the reason for develop warehouses and storage is one of the main
function of WH so better storage is very essential for WH but damages are
also happens in WH. When stock is unloaded from the vehicle then it is very
essential to unload the stock very carefully but due to mistakes of employee
sometimes stock get damaged due to poor handling. Other problem is with
the storage because if the stock is not store properly in the right place then
damages also occurs like if put something on glass items or if we stake the
stock very high and during handling it stock may fall and it may damage.
Handling stock inside the store is also a tough job if proper conveyors are not
available in the WH then it is very hard to handle the stock carefully.

Suggestions:
For handling damages in the warehouse the fist important thing is that
company must provide proper conveyors to the WH. Other thing is that the
breakable items must not be put near to the aisles like sanitary items, glass
items and gift items etc and heavy

53 | P a g e
If we want to transfer any thing from one place to another then first and
foremost thing that you require is proper packaging without which no product
is safe. So while transporting goods from vendor to WH or from WH to store
proper packaging is must but due to lack Of knowledge about the packaging in
employees there is always risk of damage. Employees in the WH does not use
proper material used for packaging like thermocol, proper size of cartons and
proper packed it with tape so because of this there is more risk of damage in
loosely packed items
I see that many of the employees do not know how to
packed the stock and they take carton of any size and
put the merchandise in it and in this way it is
completely the wastage of cartons and stock is also not
properly packed, so we must train our employee about
how to pack the different type of stock so that they do
not pack stock loosely and use proper type of carton
this also take less space and less risk of damage.

7. Damages during transportation from warehouse to store:

We study how the damages occurs during transportation from vendor to WH
in the 3 point above but those damages are very different from the damages
occurs when we transport stock from WH to store because when damages
occurs during vendor to WH then financially it is total loss Of vendor but when
stock is moved from WH to store then our transporter is responsible for that
and according to terms and condition transporter pay for these damages but
many times damages occurs due to bad packaging and proper packaging is
responsibility Of WH employees but in some places Pantaloons outsource the
work of logistics to third party Indo Arya.

54 | P a g e
 From getting rid of these kinds of problem proper packaging is must and
driver must have a good in driving and as pantaloons transportation business is
taken care by Indo Arya so it is not the problem for pantaloon and all the
damages that occur during transportation Indo Arya is responsible .

We See so many causes of shortages and damages from warehouse point of

view but this last reason of shortage is very different from all Of the above
because in this case if we make any mistake then it is complete loss of
inventory loaded in a vehicle not just some item shortage or damage this is
happens when our employees make any mistakes in documentation then there
are chances that sales tax department seize the stock because of improper
documentation. If any employee dispatch stock without waybill or OC stamp
then it is against sales tax rules and it is illegal so if there is no OC stamp or
waybill in the WH then employee not dispatch the stock for stores and there
may be shortage of stock in stores. I see this in dare WH when there is no OC
stamp in the WH and because Of this no out warding is done from the WH.

Suggestions :Company must provide the proper documents, which are

required for dispatch of stock from WH, on time and instruct the WH that no
stock should be dispatch without the proper documentation.

55 | P a g e
Suggestions AndRecommendationsFor Shortages &
Damages inStores:

Shortages & Damages in Stores.

Shortages and damages of the stores is very much different from the shortage
and damages of the warehouses because if there is any shortage for any
merchandise then customer for which we taken so much precaution is not able
to find that merchandise in the store so whatever steps we take to remove
shortages from our system and we are not able in fulfilling the demand of our
customer then it is the failure of our system. In case of warehouse we only
know that we less quantity of that merchandise but customer does not know
that and when customer come for shopping in our store and we are able to
meet the demand of customer then we say that we are successful. Damages in
the stores are also very different because we can not hold the damage stock
for a long period of time in our store because of the space problem and we
also check the shelves of the store on the regular basis so that no
damage/defective or expired date product placed in the shelves. The various
reasons of store level shortages and damages are discussed in this section:

1. Damages due to customers:

when shelves replenishment is done by store employees then many times they
do not put the merchandise at the right place and due to which it is easily
damage when any customer even touched with it. Many times we see that
children take the

merchandise from the shelf and damage it and in most of the cases children
take out the food items from the shelves like soft drinks, biscuits, snacks etc. If
children eat these items in the stores and the packets are not reach up to the
billing counter then it is complete loss but if parents take empty packets or half

56 | P a g e
filled packets to the billing counter and they pay for it then it is not a problem.
In cases when any merchandise damage due to the mishandling of costumer
and even then they are not ready to pay for that then it also a loss.
Suggestions:

The possible solutions for this problem are that the employees pay attention
during placing merchandise in the shelves. They must see that no merchandise
is put outside the shelf; no merchandise is put here and there in the store. For
handling the damages occurs due to children store must take care that they
put food stuffs at some height so that children do not touch easily. Proper
paging is also done in stores for prevent the children from damaging the
merchandise. If any merchandise damaged by customer then salesperson try
to convince the customer for paying the charges for that and if customer is not
ready for that then staff must not force them.

2. Shortage due to uncertainty in demand:

91

"Uncertainty is the mother of inventory and father of stock out"

Uncertainty is the most common reason of stock out because when store order
for the stock then they consider only the normal demand but in many cases
the demand get increased and the store is not capable in dealing with such
situation so there is shortage like in case of big days there is shortage of many
items.

Suggestions:
Department managers must consider the past demand in case of special
discount days. Before placing the order DM not only consider only one week
sell they must see the demand of the last season also and see the offers of the
competitors in that reason.

3. Shortage due to theft (shrinkage):

Shrinkage is the most common problems for the retailers worldwide and theft
is the cause of both shortage and financial loss. Theft is mostly occurs in the

57 | P a g e
items which are easily comes in the pocket of customer and it of high price
value like valet, sunglasses etc.

Suggestions:
For prevent the theft from the store security tags are the best options. Store
must put the security tags on the product according to its requirement like soft
tags, hard tags etc. and especially in case of high price products. Products like
watches, sunglasses and valets must put inside the glass counters. Salesmen
and security pay special attention on the customers on which they have
doubts.

4. Shortage due wrong allocation Of stock by category team:

I have seen that the allocation Of stock which is done by category team from
the WH is not done after seeing the requirement of that store and its location
category team just distribute the stock according to the availability of stock in
warehouse and the price Of the merchandise due to which shortages occurs.
Suggestions:
before allocating the stock to the stores category team must concerned with
the store team and allocation is done is done according to the requirement of
stores.

58 | P a g e
Other recommendations for store level shortages and
damages that I like to provide in this report are as
follows:

1 . Stock must be transferred to the shelves in time that is before afternoon so

thatcustomers do not feel problem.

2. If there is shortage for any item then any other stock placed in that shelf
or if some merchandise is present in that shelf then we must put these items
like that the shelf does not look empty.

3. Before placing any merchandise in shelves responsible person must see

that the merchandise and if any offer with it is properly entered in the REM so
that it do not create any problem when customer comes for billing of that item
because I see in many cases that offers on the products are not entered
properly in the REM and due to which many times store is not able to provide
that item to customer inspite of presence of that product in the store.

4. The damaged stock from the store must send back to vendor in time and
do not store it in the store if vendor do no take it then destroy it after taking
permission from the concerned person and from the vendor.
5. Non salable items like hangers for clothes, polybags etc are also used
properly and if any hanger is blank then employees must take it out from the
Gondola.

59 | P a g e
 LIMITATIONS
This study was mainly conducted with the aim of understanding challenges of

supply chain management with respect to warehouse operations. Despite its

contribution, the study had several limitations.

 The research was done in one store so it was impossible to take a

comprehensive view of challenges faced by other retail stores.

 As only Pantaloons in Lucknow is dealt in the study, it may not represent

the view of the retail market.

 Not all areas of supply chain management were considered for the

study.

Therefore, a comprehensive comparision was not possible.

 The pace of technological changes.

60 | P a g e
 CONCLUSION

After doing this project in Pantaloon Retail I understand how exactly the work

is done in the supply chain but after observing many things I reach to the

conclusion that there are still many gaps in the supply chain of the company

and we must try our best to fulfill these gaps so that we provide better service

to our customers and also reduce our operating cost because we are in value

retailing so only cost cutting provides us better margins and to archive all this

we have to work hard and make strong relation with Our vendors, logistics

service provider and with Our customers.

61 | P a g e
 REFERENCES

Indian Retail Report 2022

Retail Biz Feb.2022
Retail Biz Dec.2022
Images retail Dec.2022

Supply Chain Management by Chopra & Me indle www.pantaloon.com

62 | P a g e