Introduction

All tasks are interlinked and linked and often overlap in any company or
organisation . The backbone of the company distribution function lies in some
important issues such as supply chain management, logistics and stock.
Therefore, both marketing executives and financial inspectors attach great
importance to these tasks.

Inventory management is an significant role to determine both the health of the

supply chain and the impact on the balance sheet's economic health. Each
organisation continually works to keep an optimal inventory to satisfy its needs
and to ensure that the economic numbers are not exceeded or stored.

The stock is always dynamic. Inventory management needs a continuous and

thorough assessment and control by planning and assessment of external and
internal variables. Most organizations operate in a separate department or job
called inventory planners who monitor, control and review the inventory and its
interface to production, procurement and finance departments on an ongoing
basis.

Defining Inventory.

Inventories are invalid physical products containing economic value and will be
held by an organization under their custody in different forms and are expected
to be packaged, processed, transformed, used, or sold in the future.

Any organisation that manufactures, trading, sells and serves a product will have
multiple physical resources necessarily available to support future consumption
and selling. Although inventory is a needed disaster for any such enterprise, it can
be observed that for multiple reasons, organisations hold inventories which
include speculative, functional, physical, and other purposes.

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The following points with regard to the inventory stand out from the definition
above:

 All organizations engaged in production or sale of products hold inventory

in one form or other.
 Inventory may be in full or incomplete condition.
 The stock is intended to promote future consumption, sale or additional proc
essing / value.
 Economic value is available for all inventoryed resources and can be regarde
d as an organizational asset.

 Types of Inventory

Inventory of materials occurs at various stages and departments of an

organization. A manufacturing organization holds inventory of raw materials
and consumables required for production. It also holds inventory of semi-
finished goods at various stages in the plant with various departments.
Finished goods inventory is held at plant, FG Stores, distribution centers etc.
Further both raw materials and finished goods those that are in transit at
various locations also form a part of inventory depending upon who owns the
inventory at the particular juncture. Finished goods inventory is held by the
organization at various stocking points or with dealers and stockiest until it
reaches the market and end customers.

In addition to raw materials and finished products, companies also hold stock 
of replacement parts for the products. Defective products, defective parts and 
scrap form part of an inventory as long as they are inventoried and have econo
mic value in the Company's books.

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  INVENTORY BY FUNCTION:

INPUT PROCESS OUTPUT

Raw Materials Work in Progress Finished Goods

Maintenance items and Semi Finished Finished Goods at
Consumables. Production in various Distribution Centers
stages, lying with through out Supply
various departments Chain
like Production, WIP
Stores, QC, Final
Assembly, Paint Shop, Finished Goods in
Packing, Outbound transit.
Store etc.

Finished Goods with

Stockiest and Dealers

Defectives, Rejects and

Sales Returns

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 INVENTORY PROCESS MANAGEMENT:

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 COMPANY INFORMATION:

Flipkart which is a successful E-Commerce company was founded in 2007 by

Sachin Bansal and Binny Bansal. During Initial days of Flipkart its main objective
is to make make available books to those whose having internet access to it. The
company having its own brand namely "Marc Q" "Digi Flip" their products are
Refrigerators, Television, Air-Conditioners , USB's , Tablets, Laptop bags etc.
Now the company with 11.5 million book titles with 11 different categories with
having more than 2 billion with registered users. They're the leading Ecommerce
Industries in the country.

The main reason behind of becoming an successful company because they

providing there customers at most priority which is memorable shopping
experience. The company was first Ecommerce company started Cash on Delivery
[COD]service with some other with some additional benefits like 30 day
replacement policy, EMI option, Free Shipping and providing great prices on
products. All these work is only possible because of their dedicated Delivery
Team that works around the clock personally to ensure that the package is been
reached on time without damaging the product.
The main focus is was always customer and seller but without satisfied
employees which is the main drawback to retain its customer so employees
become face of the company. So to understand employees needs and to find out
how it can be retained.
So company always looking for some wellness program which will help
employees to be become more productive and work with total dedication and
with full potential with such consistency in such programs it creates friendly
culture in flipkart. There are some issues regarding communication between
employees to overcome such problems they have variety of communication
which is online and offline so it become ease to translate into regional
languages which is helpful to understand easily. Flipkart which is a successful
E-Commerce company was founded in 2007 by Sachin Bansal and Binny Bansal.

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During Initial days of Flipkart its main objective is to make make available books
to those whose having internet access to it. The company having its own brand
namely "Marc Q" "Digi Flip" their products are

Refrigerators, Television, Air- Conditioners , USB's , Tablets, Laptop bags etc.

Now the company with 11.5 million book titles with11 different categories with
having more than 2 billion with registered users. They're the leading Ecommerce
Industries in the country.

The main reason behind of becoming an successful company because they

providing there customers at most priority which is memorable shopping
experience. The company was first Ecommerce company started Cash on Delivery
[COD] service with some other with some additional benefits like 30 day
replacement policy, EMI option, Free Shipping and providing great prices on
products. All these work is only possible because of their dedicated Delivery Team
that works around the clock personally to ensure that the package is been reached
on time without damaging the product.

The main focus is was always customer and seller but without satisfied
employees which is the main drawback to retain its customer so employees
become face of the company. So to understand employees needs and to find out
how it can be retained.
So company always looking for some wellness program which will help
employees to be become more productive and work with total dedication and
with full potential with such consistency in such programs it creates friendly
culture in flipkart. There are some issues regarding communication between
employees to overcome such problems they have variety of communication
which is online and offline so it become ease to translate into regional
languages which is helpful to understand easily.

In order to satisfy our customers, it was strongly believed at Flipkart that it was
very important that employees were happy and happy. The Flipkart is always a
customer and seller as an e-commerce website. However, it would be hard to
maintain clients without satisfied staff as staff become the face. So Flipkart
developed a wellness program that helped employees to be more productive and
working to their fullest potential in order to understand their needs and how to
retain them, as well as their needs. It also established a structure called the

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Benefits Design Principles, which guaranteed the coherent design of all such
programs and the Flipkart culture. Flipkart also had to deal with the problems of
efficient communications between staff, which they employed both on-line and
online, in different methods of communication. They also made it easy for
employees to translate messages in their local language, thus ensuring that the
program is successful.

The monitoring of adoption rates helped Flipkart to make efforts to keep its
employees happy. They have also drawn up the Happiness Index, measured at
equal intervals, which confirms employee experience in various stages of the
benefit programme .

This was a huge learning opportunity, as such programs allow employees to talk
more about the company, which in turn adds value to the company.

 PROMOTION:

Flipkart's way of promoting itself has altered. It is mainly a matter of word-of-

mouth promotion, where satisfied clients can offer feedback and other clients.

Flipkart also has a firmer grip in the internet room with Google Ad-words and
SEO. In social media sites like Twitter, Flipkart also interacts with its clients,
where they answer all customers ' problems, and assess all the customers '
recommendations and execute them.

The first TV advertising focused on delivering books to door stages in a single

click helped to raise awareness of the company. Flipkart has developed
different subjects for their products ' marketing. Their tag line "No Kidding No
Sorries" means that the company's aim is to offer its clients comfort and
convenience. The company was also helped to promote itself as a better
alternative shopping experience for its target customers with another eye
catching slogan “shopping ka naya address”.

The company's TVC strategies are aimed at major events, such as the IPL in
2014, the recalling of children as adults and testimonial creative campaigns to
undermine the fears of the on-line shopping experience.

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Flipkart's exclusive telephone application has also promoted itself, providing
latest alerts about discounts, launches of the latest products, present offers and
multiple coupons and vouchers.

Flipkart has launched Flipkart Assured with Amazon's Prime, which ensures
quicker product deliveries and a valid annual charge and ensures a free
shipment within a couple of days as well. In addition, Flipkart Assured
promises quality goods at least six times by carrying out quality controls.
Flipkart Assured a successful initiative of the company due to its supplier chain
efficiency and technology expertise. Anybody on Flipkart can use this function
without additional subscriptions or memberships as an inclusive offer. All the
common categories, including phones, electronics, fashion etc., have been
included in the feature.

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 Literature of Review:
Any industry's success depends on 6Ms
1. Manpower
2. Machinery
3.  Materials
4. Methods
5.  Measurement
6. Mother-nature

There are number of research in the field of inventory by various

researchers.
Following are as follows:

1. Taygi (2014)
Inventory management is considered as major concerns of every
organization. In inventory holding, many steps are taken by managers that
result a cost involved in this row. This cost may not be constant in nature
during time horizon in which perishable stock is held. To investigate on such
a case proposes an optimization of inventory model where items deteriorate
in stock conditions.

2. Abramovitz and Modigliani (1957)

They highlighted the relationship between capacity utilization
and inventory investment. Existing stock of inventories was
expected to adjust to the desired levels. Thus the variable, existing
stock of inventories, was essential to be negatively related
with the desired stock. The result was that there is positive
relation among the ratio of inventory to sales and inventory
investment. High ratio of stocks to sales in the past suggests
requirement of high levels of inventories in the past and
promising high investment in inventories in the current period
also.

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3. R.S. Chadda (1964)
Study had been made on inventory management practices
of Indian companies. The analysis suggested application of
modern scientific inventory control techniques like operations
research. These modern scientific techniques furnish opportunities
for the companies, Companies can minimize their investment
in inventory but there is continuous flow of production.
He argued that industrially advanced countries, like, USA,
were engaged in developing highly sophisticated mathematical
models and techniques for modernizing and redefining the
existing tools of inventory investment.

4. Panigrahi (2013)
Undertook an in-depth study of inventory management practices
followed by Indian cement companies and its affect on
working capital efficiency. The study also investigated the relationship
between profitability and inventory conversion days.
The study, using a sample of the top five cement companies
of India over a period of 10 years from 2001 to 2010, concluded
that a considerable inverse linear relationship existed
between inventory conversion period and profitability.

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 WAREHOUSE

Warehouses may be locations where packaged or loose goods space in a

disorderly way. It may be challenging to find out what goods are out of the
mess, and that is one reason why adequate organisation.

The system of warehouse characterizing virtually removes this problem by

ensuring that products can be identified and controlled during shipping. It
also guarantees that clients receive their ordered item and not the incorrect
item. There are distinct kinds of warehouse rack or shelf labeling approaches
for each company. The warehouse labeling alternatives and some of its
advantages are available here.

 TYPES OF LABELLING IN WAREHOUSE

There are several kinds of warehouse labels to choose from, depending on

the storage purposes of your business. Each item can be used together to
improve the warehouse organisation and ensure that all section, rack and
cardboard are readily identified by employees. Some of the most prevalent
kinds are found here.

 FLOOR LABELS

Floor labeling is suitable for big multi-room warehouses. They are

produced for heavy flooring and wear and tear. They are intended to
cope with harsh solvents, oil, hydrocarbons and other pollutants and
can be adapted to all demands for size, form, duration, or content.

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 RACK LABELS

A label for racks which streamlines workflow by making products and

parts identified for staff simpler is the most prevalent form of warehouse
label. They assist to define the correct goods for stock management, storage
and shipping.

 WAREHOUSE MAGNETS

Magnets are the most reusable alternative out of all warehouse label
alternatives. They can be used irrespective of the temperature, removed or
re-applied without any chaos or scratches and without sticky adhesives
such as tape. Magnetic markings and labels are usually used as they can be
relocated when needed to mark the position of shelf and rack.

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 RETRO REFLECTIVE LABELS

This option is excellent for barcoding shelves. Using label particles that
reflect light, these are scanned up to 45 feet away. They are an excellent
solution for warehouse carriers, pallets and other industrial surfaces.

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 WAREHOUSE SIGNS

Warehouse signs can be a great security feature and can help identify
hazards for workers at the plant. Since the majority of warehouse employees
are operating heavy equipment and navigating sharp angles and aisles, the
storage signs are highly essential. The right procedures and potential hazards
within the warehouse should be made know by employees, and these safety
indicators are useful for informing employees of forklift safety warnings,
clearance and capability alerts, quality control warnings and safety recalls.

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 IMPORTANCE OF WAREHOUSE LABLES

The benefits of using store labels are numerous, because they are the most
cost-effective and functional way of keeping your warehouse organized and
efficient to operate.

1. EFFICIENT INVENTORYAND WAREHOUSE MANAGEMENT

Warehouse labels remove any errors, including the shipment to clients of the
wrong products and the careful handling of products. These may contain
multiple information, including expiry dates and safety notes, to improve
effectiveness within a warehouse unit.

2. MINIMIZE LOCATION CONFUSION

Labeled warehouse racks simplify work-related error prevention for staff like
the location of the wrong item. If products are restored in incorrect parts or if
mixed product regions are not organized, the whole supply chain method will
be slower and longer. This problem is almost eliminated by proper labeling.

3. LOWER RISK ERRORS

With correctly marked shelves in the warehouse, mistakes often occurring

through manual stock monitoring and recording are nearly removed. These
labels also increase workers ' effectiveness and productivity, as they can
readily identify the correct products and racks for preparing deliveries and
repair projects. Cartons properly marked also avoid problems throughout the
supply chain such as back orders or wrong shipments.

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4. IMPROVED DURABILITYAND READABILITY

Most warehouse labels are simple to install, making the process of labeling
fast and effective. If they suffer wear and tear damages, they are obviously
readable and simple to substitute. Many label alternatives can solve the
distinctive requirements of manufacturing and storage businesses.

WHAT IS WAREHOUSE IDENTIFICATION [WID]

It is a type of label that which is alphanumeric which helps the helps the
product to identify product easily for the pickers during putting into inventory
and it helpful during outbound process.

It is having number unique number given to the every product as shown in the
above picture. Many problems occur if there is any mistake is done during the
creation of WID.

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 There is a procedure to create WID as following:

 STEP1
 We have to create IRN are as follows:
1. Invoice number
2. Invoice date
3. Delivery type
4. Invoice line item- Types of Products
5. Total Amount
6. Total Invoice quantity
7. Invoice boxes
8. Supplier GST number

After this system will create IRN.

 STEP2
 IRN Submitted
1. Upload Invoice
2. Submit invoice

 STEP3
 IRN RECEIVING

To receive IRN add the following things in software like

1. IRN Number -FSN- Quantity

2. There is reason box is there in that select no issue.
3. After that click to Receive IRN.
4. After receiving IRN Putlist will be created
5. And system will create WID automatically.

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 Issues to face due to wrong creation of WID or Double labelling
In Inbound the products gets unloaded and products are checked and gets
lined up in warehouse before getting its ID. You cannot put into their
destination shelfs without giving their ID if any product it kept in shelf
without sticking their ID then it will find difficult for pickers to find the
product due this there will chances of Miss-shipment which is big risk that
has to face by the warehouse management.
Warehouse Identification Number for Air Conditoners there is
Outdoor and Indoor unit. So for these same wid will be created for the
product because it is the part of it.
There is another case that is the product id number is stick to the product
box but many a times there is drawback that is there is no specific area
allotted to the to paste that number so due to this the person who stick that
number can paste it any where.

Double Labelling procedure is done when the product is being coming to

warehouse due to rejection of product. So the product old number is
removed and new WID is been pasted to the product. WID consist of
barcode which helps pickers to scan in the device.
In some cases the WID pasted so many times it gets damage while handling
the product. So there is difficulty to locating the product and the procedure
of scanning cannot be done due to this the product cannot be go out for
delivery of the product because of damaged number.

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