Summer Internship Project

EFFICIENCY IMPROVEMENT - SCM

Faculty Guide Mr. Padmanabh B Associate Professor (SCM) CUIM Ltd

Company Guide Mr Kurian Chacko Asst Manager Spencerss Retail

About the Company

Established in 1996- Headquarter in Kolkata. Spencers Retail Limited is a multi-format food-first retailer providing

a wide range of quality products . Brand positioning Makes Fine Living Affordable-best products and services that enable a fine living at reasonable prices. 200 stores across 45 cities in India. We offer Both fresh and packaged foods. Groceries. Electronics and electrical equipment. Home and office essentials Garments and fashion accessories. Toys and personal care.

About Topic
TOPIC : EFFICIENCY IMPROVEMENT - SCM

Objective: Basically it is to study the supply chain management

process. Find ways to make the process more efficient and to cut cost. To relate theory with practice and to understand theory more practically. To get familiarized with the various departments and their functioning.

Work Process

Problem Identification
Problem 1 - Inefficient Layout.

Problem 2 - Damage caused in Allocation.

Problem 3 - Visual Merchandizing. Problem 4 - Non availability of Fast moving

products during weekends. Problem 5 - Union Problem.

Problem 1 - Inefficient Layout

Stores storage are

Observation
A E 2 B 4 C 6 D 8 E 7 F 8 G 6 H 4 I 2

Table 1: Distance (in m) of each store from the exit

A E 8

B 16

C 24

D 32

E 28

F 32

G 24

H 16

I 8

Table 2: Time (in sec) to complete one cycle

Analysis
Case (i) For a worker time taken to travel to complete one cycle between EF=32 sec For eg: If we have 100 goods to carry between EF Then, time taken by the worker is= 100 * 32 sec= 3200 sec Case(ii)

For a worker time taken to travel to complete one cycle between EA= 8 sec

For eg: If we have 100 goods to carry between EA Then, time taken by the worker is= 100 * 8 sec= 800 sec

So, for a single day we can save upto (3200-800) = 2400 sec Converted into min it is = 40 min

As the goods are loaded for the three times a week, So, for a week it can save up to 2 hrs.

Suggested Layout

Problem 2 - Damage caused in Allocation

Observation
Basic movement between 1 m takes around 2 sec,then

movement between 2.75 m will take around 6 sec. In hurry to complete work workers start throwing items into baskets- which causes damage. It is cost for Company in different sense :
Carrying of damaged items from DC to Store. Carrying back the damaged item back to DC from store as

they will not accept. If the goods are not taken back by the vendor then it a loss for the company. Damaged items are kept in DC which is inventory cost and it cover certain space.

Suggested Solution

Problem 3 - Visual Merchandizing

Ice Cream Section
It was kept in the corner and there was no medium to

attract children. Even the children pass through that area they dont realize that its ice-creams.
Chips Section
People asked me where is the chips section?-problem

arises with people who come for some particular product only. Even though the there is broad hanging about the products in the section no one seems to realize that.

Analysis
Suggested Solution 1 Keep the board in visibility range. Problem If the board is brought down it will affect the visibility of the products. Suggested Solution 2 attractive cubical labeling -eye catching to the customer see the products from all the angle - easy for people to sight the items.

Suggestion

CHIPS BEVERAGES

Problem 4 - Non availability of Fast moving products during weekends

Observation
For Example:

P & G supplies to DC on Saturday. Allocation takes 2 days. Products reaches store on Monday. Fact Number of footfalls is more on weekends. Cost Non availability of products Dissatisfied customer. Assumption of customer. Brand name. Effects market Share because of heavy Competition from MORE.

Suggestion

Problem 5 - Union Problem

People does not allow company people to unload

or load the goods. They will charge heavy price for it.

Suggestion
Make a prototype of the vehicles inner part and

load the goods in that prototype. This loaded prototype can be placed to the vehicle with the help of a goods lifter.