The supply chain of BRAND FACTORY is very well organized.

*****In the store level Team leaders of the different Categories report about the merchandise replenishment levels and buying trends of the merchandise to the Category Managers at store and zonal office. *****The category managers in turn will place orders to vendors and they will either send the merchandise directly to the store or Distribution centre and from there the merchandise is sent to the store distribution centre and made available to the customer. All the communication is done through effective use of ERP softwares like REM and SAP Below is the brief representation of merchandise and information of supply chain of BRAND FACTORY (BF)

Activities at Store Level 1) Getting Products to Shelf Indenting & Purchase Orders (POs) (a)Indenting:Indenting will be happen after checking stock in the store and goods in transit. Or whenever if required any changes in indenting due to season, weekends or any festivals then the quantity is modified. The indents will be raised to Zonal office in Bangalore. Delivery of fruit & vegetables is after48hours after being raised. Indenting for milk and dairy products is delivered after 36 hours.

(b) Raising PO:PO (purchase order) for different merchandise is placed and is released to the vendors by the stores. PO on vendors can be raised only once each day & its validity will be for onetime and all the delivery and payment conditions are mentioned in it. 2) Receiving:(a)Checking of Delivery in DC All the Dry DC delivery will be checked by a store staff in the DC staging area before packing and loading. This is to minimize delivery count error and ensure that right quantity is delivered to the stores. Behind this all the activity owner is Store Manager.

(b) Receiving Goods in Store: From DC & CPC Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of receiving goods from DC many things which is followed by the SCM, ASCM, & CSA 1. Check the seal in front of driver. 2. Note down the air condition temperature. 3. Inspect stocks for transit damages.

4. If any HU (Handling unit) / article is found damaged,excess, or missing noted it on the trip sheet for return to DC. 5. Do the GRN (Goods return note) for the delivery for the actual received quantity. 6. Stores are not unloading transit damaged stocks. Transit damages will be returned to DC in the same delivery truck.7. The main focus during goods receiving must be to unload the crates/ cartons from the truck as quickly and safely as possible. (c) Receiving from Vendors Procedure for receiving goods directly from vendors. Behind this whole activity owner is store manager/ asst .store manager. Food bazaar stores indenting speciallybakery, beverage and books/magazines and music.SCM/ASCM - 76 -

1. Check the deliveries for quantity, damages and freshness and accept only good products as per shelf life norms. 2. Do not accept any short shelf life or damage quantity from vendor and reduce it from the invoice if required. 3. Remove all expired products from the shelf and get them replaced with fresh product without any GRN for the same.3 In case of books/magazines and music SCM/ASCM check bar-codes on the books or music CDs delivered by the vendor & return the unsold items to the vendors. 4. Vendors and store staff check physically check DSD deliveries for damages and freshness and accept only fresh saleable products.

3) Replenish Shelf from Goods Receiving Area Storing and cross docking: The merchandise received from DC and CPC are either stored or cross docked in floor wise order and sent to be respective floors . Tagging: All the merchandise from DC and CPCs are tagged with security tags to prevent merchandise from shrinkage. There are different guidelines for different products to be tagged. All the pants and briefs are tagged on the left side of thepocket, shirts are tagged at the front part between 2nd and 3rdbutton and foot wear are tagged to the left wear. All the accessories are tagged with paper tags and soft tags Managing Price Changes: All the SKUs are scanned before sending to floor to check the price variations and the discrepancies are sent to the zonal category staff. All the changing of SKUs is done by category staff at Zonal office in Bangalore

Replenishing merchandise to shelfs: After all the above process is done, the respective floor manager is intimated about the stock to his floor and a gatepass is generated and he would come and collect the merchandise and stock to the shelfs of his floor.
4)Managing Segregation of damaged and expiry in store: waste and markdowns:

For F&V crates are received carefully for the item not for sale as per PRIL quality and are removed from the shelf. It is done by Team lead/Floor manager. EXPIRY: 1. Near expiry product is markdown as per the RR rule. 2. An expired product is segregated and is treated as per following. Vendor supply-Exchange with fresh stock from the vendor at the time of next delivery DC supply-Dump in store. Markdown for damages and near expiry: Damaged and near expiry products is markdown as per the following rules: Markdown criteria Up to Rs. 15 or 15 % of selling price (whichever is lower ) & it is done by Store manager. Up to Rs 30 or 30% of SP(whichever is lower) & it is also done by DM / AM. Beyond Rs 30 or 30% of SP & it is done by state fresh head. Dumping of Damages and Expiry products 1. For processing of dump (damaged & expired) approval is obtained from store manager. 2. After dumping, the entire dump is entered into dump register in the presence of SM with his /her signature. 3. The entire dumped product is then get hand overed to garbage collection agency. 4. For some types of damaged product some part of each product is kept as proof. 5. Finally the dump register is sent to the supply chain office for system entry which will be audited at the zonal and head offices. 5) Returns: *******The goods that are not fast moving or having defects or expired or damged are returned to respective distribution centres or vemdors.

*****The respective floor managers generate the out pass for movement of merchandise from floor to the store DC.Where the merchandise are physically counted or weighed,untagged and an out pass to the DC is generated and loaded to the vehicle. *****The vehicle is tagged with the security tag and a return invoice is generated and handed over to the vehicle driver after taking the signature. CRM (Customer Relationship Management Advanced Planning and Scheduling Systems APS systems