FINALTRAININGREPORT
Submitted by:Arun Kumar SinghDOJ- 15 Nov, 2012Contents1. Company
structure and working culture2. E-commerce3. : Category culture and
sourcing team4. General Skills5. Sourcing workflow6. Inventory
model7. Category Process-18. Re-ordering Algo9. Category
Process-210. Damaged Good Process11. PP Process-112. Excel
Skills13. PP Process-214. Finance Terms and Tax Calculation-115.
Business Development16. Finance Terms and Tax Calculation-217.
Operation Workflow
Day1-15 Nov, 2012This is my first day in the office and after
the formality of filling form for opening bank account, I attend
two important sessions. One was about the training process, report
and work culture and in another session I came to know about
e-commerce.Session 1: Training Program DetailIn first session, I
was told about the training process which includes assignments,
daily EOD reports, final training report, seminar, and viva and
about the company and work culture of Fashion and You. First
session was given by- Mr. Vibhore Mr. Deepak1. About the
training:The training will be of 10 days. In training period I have
to be very attentive about what is told to me. The deliverables
covered in our training are- Assignments Reports Tests
PresentationAssignments:I have to submit two assignments. One is
given to me today which is comparison based assignment. I have two
compare four e-retail companies which are as follows- Fashion and
You Jabong Craftsvilla SnapdealReports:I have to submit two
reports. One is EOD Report which includes the detail of the
sessions given till the end of the day. Second is the Final
Training Report which is to be submitted at the last day of the
training.
Tests:I have to give two tests. One is Excel Test in which we
have to prepare a excel sheet on MS Excel. In the second test, at
the end of training we have to give a written test what we are
told.
Presentations:I have to give a Final Training Presentation which
will be in front of my Category Manager and Mentor. This
presentation is very important for me. I have to make it carefully
as there will cross sections on it. The PPT should be crisp and
clear and it need no beautification.I have to participate in Mid
training Discussion. It will be basically a viva with Category
Manager and I have to take time for my viva on day 5.2. Company
Introduction:Fashion and you is an event based e-commerce company.
It provides mainly ladies product like apparel, cosmetics etc. It
has products for mens, kids and for wedding ceremonies too.The
company is registered as Goldsquare Sales Pvt. Ltd. And company
website is FashionAndYou.com. It acquired Urbantouch in Aug
2012.Departments of the Company: Category Team: This team manages
the relation with the supplier, it will manage the category of
inventory, sourcing of inventory and its price is also decided by
this team. Catalogue Team: It prepares catalogue for products, its
photo shoot. Operation Team: It consists of many teams. One is
Inventory Team which maintains inventories in the ware house. There
is Procurement team which receives the products from the suppliers.
Operation Team has a PP Team which deals with the PP brands and one
is Logistic Team which manages the packaging, dispatch and tracking
of products. HR Team: It is responsible for the recruitments in the
company and manages man power. Finance Team: It deals with all the
finance matter with the help of category team. CS Team: CS team
gives information and solves queries of the customers. Marketing
Team: This team decides the merchandise of the products. It decides
the ads for the sites like Google, face book etc. Facility Team
Tech Team PM Team
3. Work culture:In this session, I was told to follow some
ground rules which are necessary for my own growth in the company,
I was told the culture of company which is- Performance- driven and
lastly about some norms of working culture.
Ground Rules:I was told four ground rules which includes-
Sincerity I have to be formal about the assignment and if I make
any mistake it should not be repeated. Ownership - It means once
any assignment is allotted to me its my own responsibility to take
it seriously and need not to wait for anyone to follow me.
Transparency If I had made any mistake I should accept it and I
should not blame other for the same. Openness to feedback It means
I can give my feedback and ideas at any level of the company.
Session 2: E-CommerceE-commerce is buying and selling of the
products through electronic media. E-commerce can be of three types
according to category of the products, models of the products and
interaction with the vendors. If we have good interaction with the
vendor for any particular product we can think of its online
business.Services of e-commerce:It is an emerging business which
facilitates the customer to buys his product by ordering it online
from his home. It reduces the offline store transport charge and
the main service of e-commerce is it reduces the time of customer
if he hasnt any urgency.Advantages: 24*7 shopping availability Need
not to go to store to select his product. No any pressure to buy
the product. Customer can save the money spent to go to
store.Disadvantages: Transaction problem to customer Insecurity in
case of credit and debit cards Late delivery No feel and touch of
the product.
Day 2 16 Nov 2012Sessions:I have four sessions on day 2 of my
training. These sessions are as follows-Session 3: Category culture
and sourcing teamSourcing Team:It works on purchasing of products,
maintaining the relation with the suppliers, business development
and coordination with other teams. It comes under the Category
Team.Deliverables of sourcing team: It reduces the stock out
condition for the brands available. It tracks the inventory which
is slow moving from the supplier. This brings new products on
portal. It manages the damages of the products and informs the
supplier. Sourcing team coordinates with other departments
also.
Sample day of Sourcing team:Sourcing team checks the stock out
product report sent by the operation team. According to the report
a PO is raised and is formalized. Check all the outright brands and
send invoice to finance team, then it check for all SOR and PP
brands. Then it sends the return sheet and debit note to the
supplier and call supplier for follow up of existing brands.
Sourcing team also makes BD calls and does some Ad hoc works in the
same day.Work in FnY:I will be the key member of category team as
sourcing comes under the category team. I have to mainly handle the
procurement function and have to give our best and beyond anyone
expectation.Leave application:I have to make a confirmation for the
leave and have to inform previously. In case of emergency I have to
inform my manager.
Session 4: general skillsI was told some important commonly used
skills which are as follows-Email management:In email management we
will use the filters to categories the emails and facilitates our
self in easily accessing each category mail.Email Communication:The
emails sent to anyone should be formal, should not be descriptive,
there should be no sms language, should be crisp and clear, and
there should be signature in the end of the email.Difference
between To, Cc and Bcc:To: It is the main recipient of the mail and
can see every mail under Cc but cannot see the bcc mails.Cc: It
stands for carbon copy and can see all people in cc and to list but
cannot see the bcc list.Bcc: It stands for blind carbon copy and
persons listed in bcc can see the To and Cc field persons. Bcc will
not be able to see any other bcc person.Bookmarks Management:For
all the frequently used links use bookmark and add them in bookmark
tab. We can also manage them in folder and nested folders.Verbal
Communications:When we interact and talk to the supplier we use
formal language, we have not to commit any thing which we are not
sure about. Always try to discuss in clear terms and will avoid
ambiguity. Our language should be crisp and clear.Task
management:We need to be multi tasking and use some note like
diary, Google doc, excel, Gmail etcPrioritization:We need to
prioritize the work according to its importance, urgency, effort
and impact. We will consider all these parameter to decide what to
do first.
Session 5: sourcing workflow:In sourcing activities there comes
two things-one is new brands and other is existing brands. This
session is specially to give an overview of sourcing the products.
For sourcing we categories products as New brands Existing
brandsNew brands:First of all we will try to understand the market
condition of that brand, identify the suppliers in the market and
contact them. Then we will try to negotiate them and after
confirming everything place the first order and then second order
or subsequent orders.Existing brands:If we are going to source for
a existing brand we will follow these steps- PO making PO
formalizing Receiving Return 7 payments Payment reconcilement(SOR)
Stock correction
Session 6: Inventory ModelsInventory models are models used to
procure products from supplier and supply it to the customers.
There are four types of inventory models used by companies which
are- Outright Purpose SOR(Sale-Or-Return) Post Procurement(PP) Drop
ShippingOutright Purpose Model:In this model the inventory is
procured from the supplier and maintained at the warehouse of the
retailer. The payment is made after the product is delivered or on
credit, depends on the negotiation with the supplier. This model is
followed in traditional Kirana shop.
SOR Model:This model is same as outright model as the product is
procured in warehouse and orders placed by customers are delivered
by the retailer. This model is different from outright as the
payment in this model is made only for the products sold and remain
goods are returned to the supplier.PP Model:In this model the
product is procured at the time when order is placed. The runner is
send to the supplier when any order is placed. This is also known
as real time procurement model. In this retailer need not to invest
money on procurement.Drop Shipping Model:In this model the details
of the order is passed to the supplier and the supplier delivers
the product directly to the customer. So the products need not to
be stored or procured at the warehouse of retailer. The commission
is received by the retailer.There are two more terms used by the
supplier which are-Consignment Model:It is same as the SOR Model.
The only difference is that the inventory is purchased in SOR and
payment is made later and in consignment supplier inventory is kept
in the warehouse and sold. In SOR retailer pays the sales tax but
in consignment supplier pays the sales tax. Virtual Inventory
model:In virtual inventory model the product is not present with
the retailer but is represented in system. The PP and Drop shipping
are mainly in this model.When to choose which model:Outright model
when supplier is not ready for PP or SOR and inventory is
costly.SOR - If PP is difficult and supplier is not near by the
retailer.PP - Its preferable if the supplier is not far away from
the retailer and inventory is of high risk.Drop Shipping Retailer
mostly does not prefer this model.
Day 3- 19 Nov, 2012Sessions of the day:There are two sessions
today, one is category processes - 1 and other is re-ordering algo.
In this session we are told about the process followed by us in our
category. In sourcing team, we will raise PO, formalize it, receive
it at our procurement, generate SKU, maintain label sheet, returns
to supplier, payments to supplier and stock correction. In
re-ordering algo , we will check the stock and prepare for the next
PO. This algo will depend on some basic factors.Session 7: Category
process 1Category process is divided in two parts according to the
processes. The process is consists of- PO making and formalization
Process Form-38 Receiving Internal SKU ID Generation Label Sheet
Samples for cataloguing Returns Payments Outright Payment SOR
Catalogue Filling UT WebIssues Stock Correction Handshake with
other departments Catalogue Finance CS OpsOut of these processes
three is covered in this session which are PO making and
formalizing, form 38, and receiving.One important thing is that we
have to intend to learning rather to memorize it. We should
understand these processes as it may change with time.PO making and
formalizing:Purchase Order is formal intend to buy the product. It
is created depending on the sale performance and re-ordering algo.
In PO making we first check the re-ordering list and select the
relevant products according to the brand, category and its enabled
or not. Then make a re-ordering list and copy that relevant product
in it. We have to check the system for quantity available and
orders in transit. We generate the formula and mention comment for
the change in product number and send it for the approval to CM.In
formalization of PO, the naming convention used is Category PO - -
The email is mailed to the following link as To:
[email protected] CC: Category
Mailing ListThe email body of purchase order should be decided
according to the type of PO either it is raised first time or it is
either a regular PO.Email body of PO for new brand:Please find
attached the PO of. This is a New Brand in > (mention the name
of respective category). Attached are the Vendor Details (either
through VRF or in the mail body).Current PO:It contains the
complete details of the present PO as it shows the total MRP, total
units ordered, total SKUs ordered and New SKUs.Email body of PO for
old brand:For the old brand the PO mail body contains the purchase
order, the current PO information is same as new brand, sheets are
checked for revert and the last PO data information is collected.
It includes the SKU ordered, no. of units, last PO date,
fulfillment rate etc. The data according to the MRP is also
collected.Approval of Data:Firstly PO is approved by category
manager than its send and the formalized PO is received in same
thread in the form of pdf.Sending PO to supplier: To: Supplier
email id(s) Cc: Category Mailing List Bcc:
[email protected] of the PO
will be- UrbanTouch.com - PO - - The email body has no any specific
format.PO Tracker:Before sending PO to supplier (in case of new
brand) we have to perform these steps- Get the vendor database
updated Drop a mail to Bhupesh and cc to category mailing list
Mention all the required details needs to be updated Brand Supplier
Name (Ensure that this is correct since this will be used for
validation later) Expiry Rule, Exceptions, Specific Instructions
Inspection PeriodThen we send PO to Supplier, and after sending PO
we have to perform some tasks as- Fill PO tracker as soon as the PO
is sent to the supplier Send label sheet to the PT of the expected
stock as soon as the PO is sent to supplier In case any changes
needs to be done in PO tracker Drop a mail to Bhupesh and cc to
category mailing listMention the changes needs to be made to the
tracker - Inspection period, expiry rule, exceptionsUpdate the
relevant trackers
Form 38:Form-38 (Or Road Permit Or ST-38) is a legal document
which needs to be present with the stock as per Government
regulation (To enable Government to be aware of high value
transactions) while Stock crosses a state border or Stock being
transported is worth equal to or more than Rs. 25,000 according to
the Invoice Value (tax included).
Request for Form-38When we need to send the Form-38, we request
to finance team for the same. In case of Reindeer Invoicing- Send
an email to [email protected] Subject Form-38
Request - Body should include Name of the vendor Billing address of
the vendorAnd if case of Gold Square Invoicing- Send an email to
same mail thread of PO formalization after getting the PO
formalized2. Finance team will directly send the form to the
supplierReturn of Form-38:Supplier should send back the Form-38
along with the stock or Ops Team sends them back to the Finance
Team after receiving it.Points to Note:Take special care of the
Form-38 as FIR needs to be lodged at Police Station if it is lost
and it is a really painful task. Supplier should also be told about
the importance of sending it with the stock. After the form is
received back, it should be handed over to Kapil in Finance
Team.Receiving process:Ops Team conducts the receiving process at
the warehouse but ultimately it is sourcing teams responsibility
that everything is checked properly as supplier will come back to
you only.Debit note:A financial document to account for a component
in invoice which is not paid for. Needed by both parties to match
the account books. This always holds true Debit Note = Invoice
Stock accepted
Reasons of debit note:Damages, Defects, Quantity mismatch,
Additional goods sent, and Returns (e.g. SOR, Stock-correction,
damaged goods process, etc) are the reasons to place the debit
note.
Session 8: Reordering AlgoReordering is done in some specific
cases like- To order SKUs listed on UT website Estimation of amount
to be sold in a stipulated period To balance stock outs and Days of
inventory outstandingIt is the most critical aspect of sourcing as
it involves direct financial implications to business. Reordering
Algorithm is the formulae to ensure number of units for each design
is ordered taking in to account all important factors.Factors to
consider reordering algo: Sufficiency of Sales Data Pro Rated Sale
Current-Stock Stock in transit/ held/ pending order Notify Me
Requests MRP No. Of Days Live (Enabled + In-stock) Ordering Factor
Lead Time Best Sellers SKUs to kill Inventory Model*
Variables in reordering algorithm: data sufficiency Sufficient :
Live Days >= 10 Insufficient : 1 = 500, RF = 20 days If 250
