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( How to improve the Performance )
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Aadil Shaikh
Roll no : 1
MMS
Marketing
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àifestyle International (P) àtd, part of the prestigious Dubai based àandmark Group,
started its operations in India with the launch of the first àifestyle store in Chennai in 1999. In
little over a decade¶s time, àifestyle has established itself amongst the leading retail companies
in India. Positioned as a youthful, stylish and a vibrant brand, àifestyle offers its customers not
just the ease of shopping but also an enjoyable shopping experience. Each àifestyle store brings
together five concepts under one roof ± Apparel, Footwear, Children¶s Wear & Toys, Furniture
& Home Furnishings, Personal Grooming - offering a convenience of a one-stop shop and a wide
choice of national & international brands. Babyshop is a concept that has children¶s clothes and
toys in it.

Problems:

ÿ‘ The problem with this concept is that it contains items or SKU¶s that can get
damaged easily.
ÿ‘ [ne of the biggest problems that Babyshop as a department faces is huge losses
due to damage of goods and pilferages.
ÿ‘ In the latest stock checking that happened in January of this year, it was found
that around 40,000 quantity of items were missing, i.e. there was no record of it
being sold and it wasn¶t there in the warehouse and store as well.
ÿ‘ The root problem of this is that the warehouse and the store consider themselves
as two separate units and thus have two separate metrics to measure themselves.
ÿ‘ The warehouse measures its performance on quantity replenished and in how
many days. The store measures itself on sale. Thus if sale does not happen at the
store, the store blames the warehouse for not sending the items on time.
ÿ‘ Another reason for damage of stocks is the lack of discipline of the staff in the
warehouse.
ÿ‘ The staff is uneducated and do not understand the implication of damaging goods
on the company.
ÿ‘ The staff is made to work night shifts without any proper management
involvement.
ÿ‘ This gives them freedom to play with the goods and in most cases damage them.
ÿ‘ The employees that work in the warehouse are actually employees of an
outsourced company 3Pà.
ÿ‘ Thus this company wants to put all the damage blame on the stores and vice versa

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Solution :

ÿ‘ The parameter that both should measure themselves on is sales.

ÿ‘ That is both should sell as much quantity by keeping as less inventory as possible.
So the stores should keep in as little quantity as possible without having to suffer
loss of sale.
ÿ‘ This also reduces the possibility of damage as the possibility exists more in the
store.
ÿ‘ The warehouse on the other hand should ensure that it does not send damage
goods to the store in any case.
ÿ‘ The way of Tracking in the warehouse should be as per standards so as to make
the probability of damages as less as possible.
ÿ‘ Another reason for damage of stocks is the lack of discipline of the staff in the
warehouse.
ÿ‘ The staff is uneducated and do not understand the implication of damaging goods
on the company.
ÿ‘ The staff is made to work night shifts without any proper management
involvement. This gives them freedom to play with the goods and in most cases
damage them. The employees that work in the warehouse are actually employees
of an outsourced company 3Pà. Thus this company wants to put all the damage
blame on the stores and vice versa.
ÿ‘ The company needs to re-organize its hierarchy and ensure that the various
departments work towards a common goal.
ÿ‘ The staff that works at the warehouse needs to be trained on the importance of
discipline at the warehouse.
ÿ‘ This will ensure that the damages are restricted to a minimum.