PROJECT ON

INVENTORY AND DISPLAY MANAGEMENT

Submitted to:
Prof A.S Sandhya

Submitted by :
Amit kumar singh (JL12RM05) Jai Singh (JL12RM08) Mohd. Bilal ( JL12RM33 ) Mohd. Aleem ( JL12RM32 )

INTRODUCTION

The task of allocating the merchandise to the various stores, usually rests with the merchandise management team or the category manager as the case may be. As the store, the store staff manages this inventory. To enable them to work efficiently, the complete procedure for the handling of merchandise at the store level needs to be documented. Responsibility with respect to merchandise at the store level involve receiving and in warding the goods. Once the merchandise is received at the store, the quantity and other details like color, style and sizes have to be checked with the document accompanying the goods, to detect any discrepancies. In the case of most large retailers, using a hand held scanner, the merchandise is scanned and the system updated for the stocks received. Proper documentation also needs to be done when returning goods to the various locations as and when required. As the integral part of managing inventory at the store level is displaying it correctly. The best merchandise may lie unsold if it is not displayed in a manner that is appealing and convenient for the customer. For ex in a supermarket, if 15 ltr packs of vegetableoil are placed on the topmost shelf, it may be inconvenient for the customer to pick one up and carry, considering the fact that most of the customer at a supermarket would be women. In case the retailer is running any theme promotion or campaign, the products on offer need to be displayed correctly, and replenished once sold.

Product Displays That Entice The Customer

Displays that are organized and created to efficiently meet your customers' needs will assure continuing business from your existing customers and will entice prospective customers to purchase from you. It is essential to consider what type of professional image you want to convey to the customer and your community when creating and. organizing your facility. Consider the following questions when evaluating the image you want to promote in your community: What do I want people to think about first when they think about my store? How does my store and displays support this image? What do I think of first when I think about my store's appearance? How do other people respond to my store? What do people say when asked about my store's facility, staff and service? What frustrates me most about my store or product layout? What one word best describes my store? What excites me about my facility? What have I learned from considering these questions?

Product Displays That Work

By the time a customer walks into your store, he or she has received several impressions about you from your advertising, word of mouth, your store front, and now your product display. This is your last chance to make a good impression. You can create an effective product display after determining what type of image you want your store to project to your community and your customers. Some dealers prefer to present their merchandise in an informal country store environment and other dealers prefer displaying their merchandise in technically advanced learning or demonstration centers. Consider the following when creating product displays that work: "Live" display products are easier to demonstrate to the consumer. Kitchen or Home Theater vignettes are great ways to display how the product may look in the home. Plan how your customers will flow through your store to increase sales in certain products. Showcase products in high traffic areas.

OBJECTIVE FOR THE STUDY

To understand and identify the inventory and disply management Practices followed by the retail stores. To study the various IM and DMtechniques adopted by organized retail firms and stores. To study the benefits of IM and DM to the retailers and customers. To analyze its inventory management methods with the help of ABC analysis, VED analysis etc.

RESEARCH METHODOLOGY
The data has been gathered through interaction and discussions with the executives working in the division.
Some important information has been gathered through couple of unstructured interviews of executive. Annual reports and other magazines published by the company are used for collecting the required information.

MANAGING INVENTORY AND DISPLAY

Stock turnover/ inventory turnover rate = net sales / average retail value of inventory
Expressed as number of times, this ration indicates how often the inventory is sold and replaced in a given period of time. Some retailers also use the ratio cost of goods sold divided by average value of inventory at cost. Both can be calculated for any time period. When either of these ratio declines there is a possibility that inventory is excessive.

Percent inventory carrying cost = (inventory carrying cost / net sales) * 100
The importance of this measure has increased in recent years with the rise in inventory carrying cost due to high interest rates. This measure is also important to reduce stock obsolescence and to prevent blockage of working capital. Retailers use this measure to track the percentage of their net sales represented by the fixed cost of maintaining inventory.

Gross margin return on inventory = Gross margin / average value of inventory Express in rupee terms, the gross margin return on inventory (GMROI) compares the margin on sales on the original cost value of merchandise to yield a return on merchandise investment. Inventory can be valued at retail or at cost but for many retailers inventory valued at retail is more accessible that the value at cost. However, using inventory valued at retail may not give an accurate indication of investment cost. GMROI can be dramatically altered by changes in inventory turnover and gross margin.

Space
Space productivity is critical to successful retailing, hence it is imperative to have parameters that measure space productivity. The topofthemind dipstick measures are sales per square foot per day and margins per square foot per day. The performance of the store depends on the gross margin return on footage (GMROF). As retailing is all about operating within a given space, its productivity can be measures according to any of the various retail elements, be it employees, stocks, customers or even the stores facilities, besides sales.

Occupancy cost per square foot selling space = occupancy cost/ square feet of selling space Expressed in rupees, this measure translates occupancy cost into rupee value per unit of selling space. It gives an estimate of the amount of the gross margin rupee each unit of space employed for retail selling must generate to cover occupancy costs. For a multiunit retailer it is a helpful measure for comparing the performance of units at different locations. It can be calculated for any time period, such as a year or a month.

Sales per square foot = net sales/ square feet of selling space Stock per square foot = net stock/ square feet of selling space Expressed in quantity or value, this measure can be used to compare alternative uses of space involving different product lines, or to compare the performance of different departments or stores using a common standard. This ratio will vary according to the type of merchandise and merchandising methods used.

Percentage of selling space = (selling space in square feet/ total space in square feet) * 100 Retailers use this measure to calculate the percentage of total space used for sales. This ratio varies according to the type of merchandise and merchandising methods.

Inventory management at big bazaar

Procurement in big bazaar happens from

Central distribution centre Local vendors The stock in the store is managed by automated replenishment system (ARS). The CDC are located in such a strategically positioned so that it can easily caters to the nearby big bazaar. For the store of eastern zone the CDC is located at barasat

MANAGEMENT OF STOCKS ON THE FLOOR

The stocks entered into the floor can only come out with a customer unless damage or defective(expired product) The stock management on the floor depends on the foot fall of customers The stock management on the floor are analyzed by the department manager The concerned DM request for the replenishment when the sales are high The request is received by the warehouse team and accordingly replenishment happens.

SHRINKAGE MANAGEMENT
The store is finding a huge loss in the form of shrinkage In spite of high security at the store the store is finding a high time in managing the shrinkage The company ties up hard tag, soft tag in the product to reduce the shrinkage

SHRINKAGE=TOTAL NUMBER OF GOODS IN THE BOOKS TOTAL NUMBER OF GOODS IN PHYSICAL

TYPES OF INVENTORIES MAINTAINED

INVENTORIES MAINTAINED IN BIG BAZAAR

Foods Staples Apparel Beauty products Utensils

INVENTORY MAINTENANCE
As depending on the automated replenishment system. The reorder points are set depending on the sales of previous three months and hence the ARS generates the demand.

UNEXPECTED DEMANDS
Contact nearby big bazaar Contact other FBB stores Contact pantaloons They never try to lose the customer and hence provide them the best help.

PERISHABLE GOODS
Perishable goods like vegetables are maintained in a shop in shop format This is not directly maintained by big bazaar but by outside vendor. The bills are under open MRP which is settled on daily basis.

RESPONSE FROM CUSTOMERS AND OBSERVATION

Customers are happy with the way the stocks are arranged. Many customers made the points that goods are not available but when they report about that the management arranges the same. It also found the racks are arranged properly but the labelling of the racks is wrong many times. Also observed that stocks replenishment takes time and hence customers need to report to the management.

CONCLUSION

Displays that are organized and created to efficiently meet your customers' needs will assure continuing business from your existing customers and will entice prospective customers to purchase from you. It is essential to consider what type of professional image you want to convey to the customer and your community when creating and. As the integral part of managing inventory at the store level is displaying it correctly. The best merchandise may lie unsold if it is not displayed in a manner that is appealing and convenient for the customer. it shows that inventory and dispay management plays a vital role in standing a store in the market. Where inventory mangement responsible in your profit margins as well service provide to customers and display of product makes your product visible to customer which attract or gain the attention of your customer and make you different from others.