this very good concept for retailers .

1. Inventory Management & Buying
Process Of Retailers
Submitted To
Pro.Mr. Rupesh Kumar Gupta
Submitted BY
Arun Kumar Sahu

2. Inventory Management
I taken example of wal-mart retail company

3. 3
Inventory Management
• Wal-Mart invested heavily in IT and communication
systems to effectively track sales and merchandise
inventories in stores across the country.
• With the rapid expansion, it was essential to have a
good communication system.
• Hence, Wal-Mart set up its own satellite
communication system in 1983.

4. 4
Inventory Management…
• Wal-Mart was able to reduce unproductive inventory
by allowing stores to manage their own
stocks, reducing pack sizes across many product
categories, and timely price markdowns.
• Instead of cutting the inventory across the
board, Wal-Mart made full use of its IT capabilities to
make more inventories available in the case of items
that customers wanted most, while reducing the
overall inventory levels.

5. 5
Inventory Management…
• Employees at the stores had the “Magic Wand,” a
hand-held computer which was linked to in-store
terminals through a radio frequency network.
• These helped them to keep track of the inventory in
stores, deliveries, and backup merchandise in stock
at the distribution centers.

6. 6
Inventory Management…
• The order management and store replenishment of
goods were entirely executed with the help of
computers through the Point-of-Sales (POS) system.
• Through this system, it was possible to monitor and
track the sales and merchandise stock levels on the
store shelves.

7. 7
Voice-based Order Filling (VOF)
• In 1998, Wal-Mart installed a voice-based order
filling (VOF) system in all its grocery distribution
centers.
• Each person responsible for order picking was
provided with a microphone/speaker headset,
connected to the portable (VOF) system that could
be worn on waist belt.
• They were guided by the voice to item locations in
the distribution centers.

8. 8
Voice-based Order Filling (VOF)…
• The VOF system also verified quantities picked, and
could respond to a variety of requests such as
providing product detail (type, price, barcode
number, etc.)
• By installing the VOF system, Wal-Mart eliminated
mispicks and product labeling costs since the system
did not require paper lists and labels to be affixed on
the goods.

9. Store Operation & Material Management

10. Providing customer
shopping Experience
Receiving
&
displaying
goods
Recording sales
Managing alliance and partnerships
Store Administration and management of premises
Tasks performed at the store level

11. Significant Areas Of Retail Operations
1. Customer Service and Accommodation.
2. Retail selling Process.
3. Store Staffing & Scheduling.
4. Retail Floor & Shelf Management.
5. Stores Administration & Facilities Management.
6. Warehousing & Supply Chain Management.
7. Loss ( Shrinkage ) Prevention.
8. POS/ Cashiering Process.
9. Visual Merchandising and Displays.

12. Areas of Retail Operation covered
• Check out Management
• Stores Administration & Facilities Management
• Loss ( Shrinkage ) Prevention.
• Visual Merchandising and Displays.

13. Check out Management
Traditional Methods
• Minimum Cash at cash counters
• Cash balance to be updated by Computer
• IT/Skill Management
• Keeping eye on cashier from distance
• No authority to cancel
• Change( Chiller) Management

14. Cash Register Express
Cash Register Express (or CRE) is a
cost-effective computerized cash register
that keeps your inventory costs down,
reduces theft and makes more money!
CRE is Windows-based POS system
exclusively for retail and video stores.
Features :
Easy to use:
Fast lookups by barcode or name
Built-in help system Bar-code ready
Credit card processing with IC Verify
Built-in backup
Salesperson tracking Time clock
Handles multiple clerks
Handles multiple cash drawers
Password protection
Check out Management

15. Stores Administration & Facilities
Management
It includes
• Cleanliness of stores
• Maintenance of Store Facades & displays
• Time Keeping of staff
• Required Permission & Licenses
• Health & Safety Norms
• Store Security
• Insurance

16. Stores Administration & Facilities
Management- Insurance
Insurance against theft, fire, floods, riots, earthquake, etc.
Policy to be carefully formalized to cover all potential risks
Insurance – for 3 things
• Building & Infrastructure
• Inventory
• Cash ( In store & banking)

17. Shrinkage Prevention
Categories of theft - worldwide
• Health & Beauty products
• Jewellery & Compact discs
Categories of theft - India
• Chocolates
• Cigarettes
• Blades

18. Shrinkage Prevention
Ways to prevent
• Personal Monitoring by Security Personnel
• Cameras to monitor
• Use of source tagging –Small anti-theft labels are hidden inside a product
or packaging by manufacturer

19. Radio Frequency Identification
(RFID)
• Short for radio frequency identification, a technology similar in
theory to bar code identification.
• With RFID, the electromagnetic or electrostatic coupling in the
RF portion of the electromagnetic spectrum is used to transmit
signals.
• An RFID system consists of an antenna and a transceiver,
which read the radio frequency and transfer the information to
a processing device, and a transponder, or tag, which is an
integrated circuit containing the RF circuitry and information to
be transmitted.
• Used for inventory management, IT asset tracking, race timing,
passports, mobile payments, transportation and logistics,
animal identification, museums, libraries etc.

20. Shrinkage Prevention- RFID
• RFID provides improvement of security. The use of RFID tag
to expensive items can provide an outlet with increased
security and can drastically reduce shrinkage through theft .
• It also helps to do a quick and exact inventory account for
the items and this significantly reduces the time and labor
costs associated with inventory
• RFID tags can alert security guards if a stock has been
suddenly removed by shoplifters
• Furthermore, security can be enhanced through RFID
readers that automatically charge items in a customer
trolley to a credit or debit card, thus reducing theft when
items are concealed.

21. Visual Merchandising & Displays- Role
• Planning the VM theme and creating displays
• Arranging props for displays
• Arranging display fixtures and lighting
• Setting up store before opening
• Working with floor plan and stores requirement
• Training personnel on sales floor to create display
• Organizing merchandising units such as racks and shelves

22. Displays
• Window Displays-
 Exclusive windows (closed backdrop with a theme and seasonal
motif
 Open windows ( Without backdrop and passerby can see interior of
store) E.g. Apparel & Related accessories

23. Displays
 Brand Corners- For display of
exclusive brands or devoted
space in shelves or gondolas . Ex.
Arrow / Zodiac at Shopper’s Stop
 End Cap Displays – At terminal
side of gondolas – both at entry
and exit . Used in book stores
 Cascade & Waterfall display – Ex.
for Blazers, Jackets ,etc.

24. PRISM