Imtiaz Super Store

PROJECT REPORTSubmitted to MZ Mustafa

5/18/2012Submitted by Mufarrah Malik, Mohammad Sohail, Mohammad Wali and Umair Ashrafi

VALUE CHAIN ANALYSIS OF IMTIAZ STORE

PRIMARY VALUE PROCESSES

Inbound Logisticso Inspect stock outso Order placemento Receive delivery from supplierso Storage at warehouse(s)

Operationso Goods handlingo Ensure the products received are unbroken and/or undamagedo Labeling/price tagging

Outbound Logisticso Tagged productso Organized shelf placement

Marketing and Saleso Advertisements with an aim of promoting products and attracting potential customerso Distribution of pamphletso Offer discounts

Serviceo Provide trolleys and buckets to customerso Provide directionso Packagingo Product recheckingo Set exchanging period

SECONDARY VALUE PROCESSES

Firm Infrastructureo Warehouse(s) for operations at basemento Ground floor having payment counterso Wide area for products display at three floors which includes ground, first and secondo Fully air-conditioned

Human Resource Managemento Customer sales representatives, telephone operators, cash countero Inventory controllerso Logistic department, sweepers, loaderso Administration, recruiters, store/branch manager, floor manager or supervisor, accountant,

accounts payable officero Supervisors , first-line operational managerso Corporate sales executiveo Graphic designero Security guardso Technical department, IT assistants, engineers, network administrator, system engineers

Technological Developmento Security/surveillance cameraso Secured entranceo Credit card machineso Bar code readers

Procuremento Purchasing new stock

o Purchasing barcode readers, printed shopping bags, credit card machines

IMTIAZ STORE IS ONE OF KARACHI’S LEADING RETAILERS. IMTIAZ IS RECIVING VARIOUS COMPLAINTS FROM CUSTOMERS MOST CRITICAL PROBLEMS FROM CUSTOMER PERSPECTIVE ARE AS FOLLOWS:

MAJOR CUSTOMER PROBLEMS:

PROBLEM NUMBER 1: Stock outs of highly demand products.

CORRESPONDING BUSINESS PROBLEM: We do not consider information related to quantity against each transaction as a part of our value chain.

MODEL OF BUSINESS PROCESS:

High demand product

(PROBLEM AREA)

Manually

SOLUTION:

1. Hire professionals to check remaining inventory time to time (manually).2. Automate inventory control system.

SOLUTION THAT FITS BEST:

Automating inventory control system is the best solution that can overcome stock-outs because it updates all the transaction related information, manage supplier’s relationship and helps to control business processes. It will reduce cost and work efficiently and effectively. A quantity limit is fixed on which the SCM that is the inventory control system inform suppliers to about the requirement of the stock and in this way the issue of stock outs can be resolved.

REVISED MODEL:

High demand product

SalesOpening inventory

Products unavailable on shelves

Sales data

Remaining inventory (inventory quantity – sold quantity)

Order placement

(Next day) Goods received

SalesOpening inventory

Products available on shelves

Delivery received

20% inventory remaining

IMPACT OF SOLUTION TO INFORMATION TECHNOLOGY, PEOPLE AND IT:

INFORMATION TECHNOLOGY:

Our solution will affect IT because now new client machines will be required through which establishment of inventory databases and timely updating of data warehouse will occur. This will help in controlling the inventory better and will help in overcoming stock out.

PEOPLE:

Customers will be satisfied and this solution will fulfill their need. Employees will need a training session to work efficiently with a SCM to get the best out of it reduced cost as much as possible

INFORMATION:

There is a direct impact of the solution to the Information at imtiaz because the implementation of this solution will result in organized information and reduces manual work because of the automation of SCM, which will record all the information including the quantity of sold product, and immediately updates the inventory that are left.

PERFORMANCE OF THE DEVELOPED SOLUTION:

Measurement of performance will be carried out by customer feedback that can be through survey, one on one interview or measurement of complains.

ASSUMPTION:

To determine the remaining inventory, Imtiaz work manually at the end of every day which results in the unavailability of highly demand products during the day because they don’t know how much the product is left on shelves.

LIMITATIONS: This solution can reduce complaints from customers and satisfy them but it cannot alert the workers about the delivery for re-stocking shelves.

OPPURTUNITIES OF IMPROVEMENT: The developed solution can be improved by automating the notifications to the workers about the delivery so that they can quickly start re-stocking the shelves again.

SCM Inform suppliers

PROBLEM NUMBER 2: Lack of variety

CORRESPONDING BUSINESS PROBLEM:

Our value chain does not contain any kind of CRM software that is why they lack the ability to identify individual customers. In this way, they are unable to forecast the variety that each customer desires.


SOLUTIONS:

Increase the number of comparable products by increasing suppliers Monitor customers demand then add products that are highly desired by customers. Install CRM


The best possible solution is to monitor customers demand then add those products that are highly desired by them. It is the most cost effective solution. The highly desired product will be ordered by the store and after receiving the stock, the customers will find the desired product.

(Most common demand)



New servers and databases to record customer information will be required. New client machines will also be required if the current ones present prove not to be sufficient.

New customer

Customer demand

Limited choices

Unsatisfied customers

New customer

Customer demand

Choices Reduced dissatisfaction

Information

Order Supply received

PROBLEM AREA

PEOPLE:

Employees will have to attain and organize the information efficiently through which business intelligence can be derived.

INFORMATION:

A new customer information database will provide a proper analysis of customer’s demands in an organized manner. In this way, the information will become useful and complaints will reduce.

ASSUMPTIONS:

Lack of variety is due to the reason that it has no method for identifying customers and their wants, which results in limited information about the customers and limited suppliers of the products.

LIMITATION:

This solution will reduce dissatisfaction level among customers FOR A SHORT SPAN OF TIME. This will not work for long term.

OPPORTUNITIES OF IMPROVEMENT:

Installment of CRM will improve the solution, which will help them better in addressing their customer needs and wants.

PROBLEM NUMBER 3: Search for desired isle and product or difficulties in navigating the store.

CORRESPONDING BUSINESS PROBLEM: We do not have proper signage for customers.


SOLUTIONS:

1. Hire sales people for guiding customers2. Place proper navigational charts on each floor and list of products on each isle that are available

in it.3. Introduce e-map of the store through various LCD’s.


The best possible solution to overcome the navigational difficulties is the placement of proper navigational chart or signage on each floor and a list of products on each isle that are available in it. This will help customers not only in finding the desired isle and product but also in reducing frustration and dissatisfaction among customers.

REVISED MODEL:

New customer

Comes in and See map at the entrance

Ask people all around

Ask workers Ask people about the isle

Search for desired isle and product

Goes to the floor for purchasing desired products

Fetches trolley or bucket

Finally finds the desired isle and product

New customer

Comes in and See map at the entrance

Goes to desired isle sees product list

Sees navigational chart

Search for desired isle and product

Fetches trolley or bucket

Finds the desired isle and product

Goes to the floor for purchasing desired products

Problem area



Navigational charts that clearly describe the placement of different product types and product lists will be generated through IT by using IT tools. There will not be as such impact on IT from this solution.

PEOPLE:

Employees will be satisfied, as frustrated customers, finding their desired products or isle will not disturb them hence, they can work with peace, their satisfaction level will increase and customers will find the desired isle and product quickly without wondering or asking people.

INFORMATION:

Organized navigational charts and products list will be available for customers help. Hence, the current information at imtiaz will increase and new customers will be able to get the desired product by seeing the proper navigational charts.

MEASURE PERFORMANCE:

Customer feedback will be the source of measuring performance of the developed solution. It can be through one on one interview with customers.

ASSUMPTION:

There are no navigational charts in the store except the map at the entrance.

LIMITATIONS: This solution will work in all circumstances but updating it according to the changes occurring in isle is essential.


Updating navigational charts is the opportunity of improvement through which customer will get to know about the sudden changes done by imtiaz store.

PROBLEM NUMBER 4: Long waiting lines

CORRESPONDING BUSINESS PROBLEM: We do not have adequate checkout counters.


SOLUTIONS:

1. Expand Imtiaz building2. Make counters on every floor3. Make one floor for check out purpose


Best possible solution is to make checkout counters (at least 3) on each floor through which customers will be able to purchase the product right away and leave. This will not only help those who want to purchase few items but also help those who have to wait a lot at the checkout counter because of their month’s grocery purchases identification by the barcode reader one by one.

REVISED MODEL:



Information technology at imtiaz will increase because more client machines at new cash counters with new barcode readers will be required. This will enhance the checkout functioning and less rush on ground floor will occur.

New customers Purchases in basement, 1rst and 2nd floor

Payment on ground floor

Rush on check out counters

Long waiting lines

ExitProblem area

Exit

New customers Purchases in basement

Check out in basement

Purchases on 2nd floor

Check out on 2nd floor

Purchases on 1rst floor

Quicker checkout

PEOPLE:

Training of employees for new checkout counters will b needed as untrained workers at cash counters can prove to be harmful for the business because of their inefficient work. They can slow down the business checkout function despite of the increase in the number of the counters. To prevent it, proper training to the workers of checkout counters is essential.

INFORMATION:

The records of transactions will increase by the cash counters, as every counter might have a separate information database.


Measurement of the performance of the developed solution can be done by monitoring the waiting lines at the cash counters.

ASSUMPTIONS:

The physical location of Imtiaz does not allow it to expand the checkout counters further on ground floor. The maximum limit is to expand the checkout counters in ten.

LIMITATIONS:

Further expansion in physical location is not possible. The solution will work efficiently in handling many customers.


Improvement can occur by expanding the building and constructing another floor at the top.

PROBLEM NUMBER 5: Search for parking spot and transportation of heavy purchases to vehicles.


We do not consider customer parking as part of our services or value chain.


SOLUTIONS:

1. Hire people to help customers in unloading their purchases2. Valet parking3. Construct parking area floor vise


Valet parking is the best possible solution to reduce the dissatisfaction level of customers, as it will help customer to enter the store generously.

REVISED MODEL:

New customer

Reaches store

Unload the trolley and goes

Finds congested parking area

Parks car away from store

Reaches store and Walks in

No parking spot available

Check out Purchases of month’s grocery

Unloading area

Asks security guard to take care of the trolley

Brings car back

Problem area

New customers Valet parking

Customer goes into store

NotificationKey code

Car parked

Customer comes out

Check out and returns the token

Purchases month’s grocery

Takes keys

Key handover and customer goes

Brings car back



Installation of new client machines and up to date databases to record the valet drivers system

PEOPLE:

Training for workers at imtiaz for exchanging information efficiently and in handling valet parking to reduce the frustration level of customers will affect people of imtiaz. Through it, customers will become more loyal.

INFORMATION:

This solution will affect the information exchange as it will be quicker and according to which timely action will happen.


Customer feedback is the source for measuring the performance of the solution. It can be through survey or one on one interview.

ASSUMPTION:

Their location is such that they do not have an organized parking spot.


Efficient functioning of workers will improve the devalued solution and reduces dissatisfaction among customers.

PROBLEM NUMBER 6: Incorrect price tagging


We have less workers and lack of collaboration among them.


SOLUTIONS:

1. Increase number of workers and notify them instantly about the price change2. Install a system with small LCD’s on each shelf, which updates prices instantly.


Best possible solution is to increase the number of workers and install an SMS server to notify them instantly on their cell phones about the price update so that the workers would not only update the shelves price tag but also tag the products individually.

REVISED MODEL:

New customer

Desired product Purchases Incorrect price resulting in slower check out

DissatisfactionShelf price

No updates to workers

Workers pasted prices on shelves

Prices updated

No changes in price tags

Problem area

New customers Desired product

Purchases SatisfactionCorrect price results in faster checkout

Shelf price

SMS server

Workers pasted prices on shelves and products individually

Prices updated

Workers update the shelves price tags and starts tagging products indiviually



Impact of IT by the Setup of SMS server

PEOPLE:

People will get an affect because it will save their time, as they will get the updates through SMS server so it will be easy for them to receive the update and right away start their work.

INFORMATION:

Instant sharing of organized information through SMS server will affect the current information at imtiaz.


Performance can be measured through monitoring customers complains or analyzing their feedback.

ASSUMPTIONS:

Products are not price tagged individually and shelves often contain wrong price tags.

LIMITATIONS:

The solution is limited to the efficient functioning of the workers

OPPORTUNITIES FOR IMPROVEMENT:

Improvement by automating the updates to workers related to recent price of the products through SMS server.

MINOR CUSTOMER PROBLEMS:

PROBLEM NUMBER 1: Lack of walking Space, Customer has problem in maneuvering their trolleys, which results in frustration among customers.

CORRESPONDING BUSINESS PROBLEM: Lack of space between shelves which results in congested area.

BUSINESS PROCESS MODEL:

SOLUTIONS:

1. Remove a complete shelf and adjust others to increase the space among other shelves.2. Introduce less wide trolleys compared to trolleys that are currently in use.3. Merge shelves and eliminate the unused space between the shelves.


Solution that fits best is to introduce trolleys that are less wide to reduce the space that trolleys block this solution will make less hard for customers to maneuver trolley.

REVISED MODEL:


INFORMATION TECHNOLOGY: No impact occurs on IT

PEOPLE: Less wider trolleys makes easier for the customer to move with and it also takes less space which do not disturb others i.e. other customers and workers who are refilling the shelves.

Customer arrives at the store

Takes a trolley or a basket

Wants to go to a desired product isle

Customer unable to maneuver his/her trolley

Frustration

Unsatisfied customer

Customer arrives at the store

Takes a trolley or a basket

Wants to go to a desired product isle

Less wide trolley making convenience for the customer to maneuver the trolley

Problem area

Buy desired products

Satisfied customer Checks out

INFORMATION: No affect occurs on information at imtiaz.

MEASURE PERFORMANCE: Performance of the solution can be measured by conducting a survey.

ASSUMPTION:

The physical location of the store do not allow it to expand

LIMITATIONS:

Further expansion of the building is not possible.

PROBLEM NUMBER 2: Non-Availability of elevators for customers that result in difficulty for aged and people with trolleys.

CORRESPONDING BUSINESS PROBLEM: The capacity of elevators is less.


SOLUTIONS:

1. Expand the capacity of elevators2. Install an escalator


Expanding the capacity of the elevators is the solution that fits best because it will reduce waiting lines and more people will use it at the same time. This will reduce their level of dissatisfaction.

REVISED MODEL:


INFORMATION TECHNOLOGY: Expanding the capacity of the elevator will not affect IT.

New customer

Reach the desired floor through elevator

Long waiting lines for elevators

Desired product at 2nd floor

Takes a trolley or bucket

Problem area

Less capacity in elevators

New customer

Takes a trolley or bucket

Desired product at 2nd floor

Small waiting line

Unsatisfied customer reaches the desired floor

More capacity in elevators

PurchasesCheckout

Purchases

Checkout

PEOPLE: Customer lines will reduce, as more customers will be able to use the elevator at the same time. Workers will also use the elevators for taking the stock to the desired floor for restocking purpose.

INFORMATION: This solution will not affect information.

MEASURE PERFORMANCE: Performance of the developed solution will be measured by monitoring the waiting lines at elevators

ASSUMPTIONS: The store does not have enough space to increase the number of elevators.

LIMITATIONS: the limitation of the solution is cost and efficiency of the elevators

OOPORTUNITIES OF IMPROVEMENT: The solution can be improved by hiring a maintenance team to increase the efficiency of the elevators.

PROBLEM NUMBER 3: Products that are available on store are either stale or close to expiry i.e. product quality is not satisfactory

CORRESPONDING BUSINESS PROBLEM: Over stock


SOLUTION:

Hire a demand forecaster.

REVISED BUSINESS MODEL:

Stock at its end

Wrongly forecasted customer demand

Order for new stock placed in bulk

New stock received in bulk

Storage of over stock for a long time

Stale or close to expiry products

Stock at its end

Forecaster forecasts demand

Business intelligence

Optimum order placed

New stock Storage

Placement on shelf

Fresh products

Placement on shelf

Problem area


INFORMATION TECHNOLOGY: Forecaster will drive meaning from information through IT tools.

PEOPLE: As the solution is only increasing an employee (i.e. demand forecaster) that will not affect others because the employee is a demand forecaster, its work is to forecast demand and place order accordingly. Other workers and employees have nothing to do with it.

INFORMATION: Information will be organized that will help to drive statistic information.

MEASURE PERFORMANCE: Performance of the developed solution can be measured by checking the quality of the products.

ASSUMPTIONS: Placement of order is in bulk.

LIMITATIONS: The perishable products have short time for expiry

OPPORTUNITIES OF IMPROVEMENT: The solution can be improved by installing a CRM that accurately measure the customer needs and wants.

PROBLEM NUMBER 4: Duplicate products

CORRESPONDING BUSINESS PROBLEM: limited suppliers of branded products and more suppliers of duplicate products or branded products cost high, which reduces the commission on them.


SOLUTION:

1. Make a Separate sections of branded and duplicate items

New customer

High price products

Low price products

Purchasing decision

Purchasing decision on price (buys stereotype product)

Unsatisfied with the result of the duplicate products

Checkout

Not clear differentiation between branded and duplicate products

REVISED MODEL:


INFORMATION TECHNOLOGY: Update SCM by using IT tools for suppliers of branded, stereotype products, and proper track of their sales.

PEOPLE: Workers will refill the shelves as per the difference between the sections of stereotyped and branded products.

INFORMATION: Section that elaborates the difference between their qualities will help customer to take better decisions.

MEASURE PERFORMANCE: Performance can be measured by taking one on one interview from customers regarding this differentiation strategy.

ASUMPTIONS: Customers are unable to figure the difference between the branded and stereotyped products.

LIMITATIONS: The buying decision varies from customer to customer

OPPORTUNITIES OF IMPROVEMENT: No opportunities of improvement

PROBLEM NUMBER 5: No incentive for potential and loyal customers

CORRESPONDING BUSINESS PROBLEM: no identification of potential and loyal customers

BUSINSS PROCESS MODEL:

SOLUTIONS:

1. Introduce a seasonal incentive program2. Issue a loyal card

New customer

Elaborated difference between product qualities

Different sections of products

Purchasing decision on quality

Checkout

New customer

Purchases in bulk quantity

Checkout without incentive

Payment Customer goes


Issue of loyal cards to people who purchases in bulk is the best possible solution. Giving them some discount on loyal cards will be good for making good and long time relationship with bulk customers.



INFORMATION TECHNOLOGY: A proper card system by using IT tools that record the customer transaction on their assigned cards.

PEOPLE: debrief the employees about cards on checkout counters about how to handle the loyalty cards owner.

INFORMATION: A complete new database that contains individual customer transaction record upon cards will be maintained.

MEASURE PERFORMANCE: by asking customer about their satisfaction level

ASSUMPTIONS: The customers that buy products in bulk are not satisfied but the location is feasible for them to buy.

LIMITATIONS: The solution limits if there are so many loyal customers.

OPPORTUNITIES OF IMPROVEMENT: No opportunities of improvement because it’s already a wholesale store

PROBLEM NUMBER 6: Stocking of shelves in front of customers while they are shopping

NO SOLUTION

PROBLEM NUMBER 7: Incorrect invoices

CORRESPONDING BUSINESS PROBLEM: untrained workers at checkout counters

Issue loyal card

Regular customer

Purchases in bulk quantity

Checkout with some incentive

Payment

Customer goes


SOLUTIONS:

1. Train workers at checkout counter2. Introduce an automated transaction record system


Training of the workers who are at the cash counter is the best possible solution through which the workers will be able to use the software effectively and efficiently input the quantity etc to generate accurate invoices.



INFORMATION TECHNOLOGY: No such impact on Information technology, Due to this solution efficient use of IT will occur.

PEOPLE: Training will affect people and train them to use IT better and eliminate mistakes

INFORMATION: Accurate sales record will be made.

MEASURE PERFORMANCE: By monitoring the accuracy of the invoices

ASSUPMTIONS: Client machines at checkout counters are in proper working condition

LIMITATION: confusion and mistakes occur due to rush on checkout counters

OPPORTUNITIES OF IMPROVEMENT: This solution can be improved by increasing the checkout counters with trained workers.

New customer

Purchases Checkout function

Untrained workers

Incorrect invoices

Dissatisfaction

Trained workers

New customer

Purchases Checkout function

Correct invoices

Satisfaction

Training Workers

The database structure of Imtiaz Store:

TRANSACTION DATABASE:

Primary key foreign key foreign key foreign key foreign key foreign key

Transaction number

Product Number

Customer Number

Quantity Payment type

Counter Number

Employee ID

101 04 122 1 1 5 00114102 02 130 2 1 3 00118103 05 125 3 1 15 00121104 01 132 1 2 4 00116105 03 123 5 1 6 00120106 09 129 1 1 9 00124107 07 136 1 1 12 00126108 01 131 2 2 1 00113109 09 126 1 1 7 00125110 02 128 4 2 10 00123111 08 134 2 1 13 00127112 05 124 3 1 2 00117113 08 127 1 1 14 00119114 06 133 2 2 8 00122115 10 135 3 2 11 00115

PURCHASED ITEM (PRODUCT) DATABASE:

Product number Product Description01 Dawn Bread02 Pudding03 Maggi Noddles04 Loreal Foundation05 Rice (1kg)06 Slippers07 Dinner set08 Bags09 Deodorant10 Mobile cover

CUSTOMER DATABASE:

Customer ID Customer Name Customer Phone122 M. Kafeel 03455585565123 Hafsa Sohail 03467665665124 Gul Khan 03001171211

125 Fareeha Noor 03213345333126 Imran Khan 03331333133127 Farook zameer 03452700469128 Own abbas 03322348850129 Zainab ali 03463588496130 Fatima rizwan 03463338549131 Nida navaid 03243479695132 Anas zahid 03334533355133 Syeda maria 03216379930134 Anum waqar 03214437759135 Ehtesham ali 03346574434136 Fareeha noor 03213353745

EMPLOYEE DATABASE:

Employee ID Employee Name Employee Phone Number Date Of Hiring

00113 Mohamad saif 03216957569 28/12/11

00114 Furqan ali 03333375604 28/12/1100115 Hamza sheikh 03429364794 1/1/1200116 Hammad saleem 03002739364 1/1/1200117 Azhar ali 03443939307 18/2/12 00118 Faheem irshad 03453648064 13/3/1200119 Kabir saki 03479465748 15/3/1200120 Subhan gulzar 03226485048 28/3/1200121 Azeem khan 03336585057 28/3/1200122 Ali saleem 03335750394 9/4/1200123 Rizwan hasni 03125648505 22/4/1200124 Ali bakir 03137490573 1/5/1200125 Danial khan 03459050590 4/5/1200126 Haris fasi 03323785067 8/5/1200127 Owais azhar 03473390579 8/5/12

COUNTER DATABASE:

Counter Number Counter Description Date of purchase Time of purchase01 Basement counter A 17/5/12 4:00 pm02 Basement counter B 17/5/12 4:05 pm03 Basement counter C 17/5/12 4:00 pm04 Ground floor counter A 17/5/12 4:02 pm05 Ground floor counter B 17/5/12 4:00 pm06 Ground floor counter C 17/5/12 4:08 pm07 Ground floor counter D 17/5/12 4:01 pm08 Ground floor counter E 17/5/12 4:00 pm09 Ground floor counter F 17/5/12 4:04 pm

10 First floor counter A 17/5/12 4:00 pm11 First floor counter B 17/5/12 4:03 pm12 First floor counter C 17/5/12 4:01 pm13 Second floor counter A 17/5/12 4:04 pm14 Second floor counter B 17/5/12 4:02 pm15 Second floor counter C 17/5/12 4:01 pm

PAYMENT TYPE DATABASE:

PAYMENT TYPE PAYMENT METHOD1 Cash 2 Credit card

IDENTIFICATION OF PRIMARY AND FOREIGN KEYS:

This is a Transaction data base structure of Imtiaz super store.

The primary key of transaction database is ‘Transaction Number’. The primary key of Purchase item (product) is ‘Product Number The primary key of customer data base is ‘Customer ID’ The primary key of employee data base is ‘Employee ID’ The primary key of counter data base is ‘Counter Number’ The primary key of payment type data base is ‘Payment Type’

Purchased item type, Customer ID, Employee ID, Payment Type and Counter Number appears in Transaction database as foreign keys.

Documents

Imtiaz Super Store