Mahatma Gandhi Missions

Institute of Management Studies & Research

MGM Educational Campus, Sector 18, Kamothe, Navi Mumbai 410 209

PROJECT REPORT
ON
STUDY OF OPERATIONAL PROCESSES AT HYPERCITY

SUBMITTED TO
MGMS INSTITUTE OF MANAGEMENT STUDIES &
RESEARCH, NAVI MUMBAI
BY

NOOPUR MAHESH KOLI

Roll No. 24

IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY
OF MUMBAI

May-June 2015-16DECLARATION

I, Ms. Noopur Mahesh Koli hereby declare that this project report is the record of
authentic work carried out by me during the period from 4th May to 2nd July 2015 and has
not been submitted to any other University or Institute for the award of any degree /
diploma etc.

Signature
Name of the student
Date

CERTIFICATE
This is to certify that Ms. Noopur Mahesh Koli of MGMs
Institute of Management Studies & Research has successfully completed
the project work titled Study of Operational Processes of Hypercity in
partial fulfillment of requirement for the completion of MMS as
prescribed by the University of Mumbai.
This project report is the record of authentic work carried out by
her during the period from 1st May to 30th June 2015.
She has worked under my guidance.

Signature
Name
Project Guide (Internal)
Date :

Counter signed by
Signature
Name

Director
Date :

CERTIFICATE FROM THE COMPANY/ORGANISATION

Acknowledgement
The project of this nature is a learning task which gave me an exposure to understand the
operations of the retail sector in acute manners. Although this project report is being brought by
me, it bears an imprint of guidance and cooperation of many individuals. I take this
responsibility to express gratitude to all those who helped me in various ways for the successful
completion of my project report.
It is a privilege for me to have been associated with Prof.Monika Khanna, my mentor, for the
unflinching support and guidance throughout the project. I express my deep sense of gratitude
for her constant encouragement and patience throughout this work.
I am thankful to Prof. Rashmi Belval for providing me this opportunity to do this project & for
the successful completion of my summer internship.
In the successful & trouble free completion of my project titled Study of Operational Processes
of Hypercity, I am grateful to HyperCITY Retail India Limited and all the staff for their
valuable time, guidance and support.
I would also like to thank Mrs. Manasi HR Manager of Hyper CITY Vashi Store who permitted
me to work there as an intern. I am grateful to my Mentor Mr.Kunal General Manager of Hyper
City Vashi Store for giving me his valuable time out of his busy schedule and who have been a
constant encouragement. I extend my sincere thanks to Mr. Vinay Team Leader Receiving
Department who provided me lot of information regarding operations of the store, many of
which I have used in this report and without which this project could not have been completed.
I take this opportunity to thank my classmates for their company during the summer internship
and for the useful discussions I had with them.
I would be failing in my duty if I do not mention my family for providing moral support and
their blessings.

Chapter Scheme
Chapter No
1.

Title
Introduction

Page No.
1

2.

Research Methodology

15

3.

Operational Processes of

24

Hypercity
4.

Data Processing And

48

5.

Analysis
Findings

58

6.

Conclusion

60

7.

Recommendation

62

List of Tables
Table No.

Title

Page No.

1.3.1

Company Profile

06

1.3.2

Hypercity Brands

11

2.1.1

Research Design

17

List of Graphs
Graph No.
4.1

Title
Frequency of operational

Page
50

4.2

processes
Occurrences of problems in

56

4.3

MIS
Effect on sales due to

57

introduction of MIS

List of Charts
Chart No
3.1

Title
Purchase Order Receiving

Page
35

4.1

Process
Operational activity Important

49

4.2

for growth
Best process for managing

51

4.3
4.4

damage
Impact on sales
Best process stock receiving

52
53

4.5
4.6

process
Inspection for conformance
RTV of non-conforming

54
54

4.7

goods
Accurateness of MIS

55

List of Figures
Figure No

Title
Hypercity flash Ticket
Format of Purchase Order
Format of Invoice
DSD Network
Handheld Scanners

3.1.1
3.1.2
3.1.3
3.1.4
3.4.3

Page
27
29
31
32
46

List of Abbreviations
Chapter No.
1

MIS

Abbreviations
Management Information System

Page
14

3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3

SST
SKU
EAN
UPC
DC
SEL
PO
SAV
RTV
FMV
DSD
ADSD
PICS
FMR
OOS
DCMS
WMS
MMS

:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:

Stock Service Team

Stock Keeping Unit
European Article Number
Universal Product Code
Distribution Center
Self-Edge Label
Purchase Order
Stock Adjustment Voucher
Return to Vendor
Fair Market Value
Direct Store Delivery
Auto Direct Store Delivery
Perpetual Inventory Count System
Floor Movement Register
Out of Stock
Distribution Center Management System
Warehouse Management System
Merchandise Management System

25
25
25
25
26
28
28
28
28
31
32
32
37
37
38
42
42
44

Executive Summary
Without practical training, management education is meaningless so long with the theory,
practical training is provided to the management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge relating to
the concepts and practices of the assigned topics in the organization. The summer training is an
integral part of the course curriculum of MMS In this the student is in a position to analyze the
integral working of an organization with mature eyes and understand the dynamics in a much
better manner.
The project entitled Study of Operational Processes of Hypercity carried out, was the result of
extensive study of the HyperCity store situated atVashi, Navi Mumbai. My subject of study was
analyzing the role of the operational department for growth, the processes, their impact on the
sales and the implementation of the MIS system for these processes in the store.
The project provides an opportunity to know about in and out of the functioning of the retail
store which serves both as the frontline of operations and the revenue earner for the organization
engaged in the business of organized retailing. The retail store which serves as the point of
interaction and transaction between the organization and the customers is the biggest stakeholder
in determining the level of success of the business. Operations set that regulate the entire
workings of a store thus have a pivotal role. Thus while being engaged in a project work in a
retailing organization, to develop knowledge about the retail store operations provides a kind of
completeness to the task of understanding the trade. I had learned a lot about the operational
activities occurring in the retail stores to manage their retail store.

Chapter 1
Introduction

I. Introduction
1.1 Background of the study
The project undertaken is on STUDY OF OPERATIONAL PROCESS OF
HYPERCITY. It describes about how the store manages its operational processes and the
various steps that are required in the management of this process.
The study gives an idea about fundamentals of the stock receiving process of the retail
sector. It also illustrates the daily working procedure followed by the stock receiving department
and the challenges faced by them.
The study also describes about the various operational activities which helps the store to
provide best service to the customers, the role of the management information system in
controlling the stocks, managing the inventory and generating sales reports.

1.2 Background of the Topic

Retail
Retail involves the sale of goods from a single point (malls, markets, department stores etc)
directly to the consumer in small quantities for his end use. In a laymans language, retailing is
about transaction of goods between the seller and the end user as a single unit in small quantities
to satisfy the needs of the individual for his direct consumption.
Retail is the sale of goods and services from individuals or businesses to the end user.
Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery.
The retail sector due to its increasing trend gave rise to supermarkets, hypermarkets and
departmental stores.
Hypermarket is a superstore combining a supermarket and a department store. The
result is an expansive retail facility carrying a wide range of products under one roof, including
full grocery lines and general merchandise. Hypermarkets allow customers to satisfy all their
routine shopping needs in one trip.

Growth trends of Indian retail sector

Retail sector is the booming sector in the Indian economy. It is on the threshold of a big
revolution after IT sector. The retail boom faces a strong competition from millions of stores

which are easily accessible & approachable and provides services like free home delivery and
goods at credit. But buying from supermarkets, hypermarkets and departmental stores like
Subhiksha, Marks & Spencer etc. gives a different feeling and environment of pick and choose
from variety of products and brands.
A number of retail giants such as Reliance retail, D-mart, Wal-Mart are exploring the market.
The retail sector of Indian economy is going through the phase of tremendous transformation.
The sector is organised into two; organised retail sector and unorganised retail sector with the
latter holding the large share of the retail market. At present the organized retail sector is
catching up very fast in India.

Introduction to Operation Management

The business function responsible for planning, coordinating & controlling the resources needed
to produce a companys product or services.It can be defined as the management of the
conversion process, which converts the inputs such as land, labour, capital into outputs i.e.
product and services.The concept of operations management is related to the optimum utilization
of the resources in the best possible way.
Operations also refer to the production of goods and services, the set of value-added activities
that transform inputs into many outputs. Fundamentally, these value-adding creative activities
should be aligned with market opportunity for optimal enterprise performance.
Operations as a Transformation Process

Operations management is about the way organizations produce goods and services. Everything
you wear, eat, sit on, use, read or knock about on the sports field comes to you courtesy of the
operations managers who organized its production. Every book you borrow from the library,
every treatment you receive at the hospital, every service you expect in the shops and every
lecture you attend at university all have been produced.
This definition reflects the essential nature of Operations Management; it is a central activity in
organizing things. Another way of looking at an operation is to consider it as a transformation
process.

Operations are a transformation process; they convert a set of resources (INPUTS) into services
and goods (OUTPUTS). These resources may be raw materials, information, or the customer
itself.
Inputs
Some inputs are used up in the process of creating goods or services; others play a part
in the creation process but are not used up. To distinguish between these, input resources
are usually classified as:

Transformed resources those that are transformed in some way by the operation to
produce the goods or services that are its outputs

Transforming resources those that are used to perform the transformation process.

Inputs include different types of both transformed and transforming resources.

Three types of resource that may be transformed in operations are:

materials the physical inputs to the process

information- that is being processed or used in the process

customers the people who are transformed in some way

The two types of transforming resource are:

staff the people involved directly in the transformation process or supporting it

Facilities land, buildings, machines and equipment.

The staff involved in the transformation process may include both people who are
directly employed by the organization and those contracted to supply services to it. They are
sometimes described as labour.
The facilities of an organizationincluding buildings, machinery and equipment; are sometimes
referred to as capital. Operations vary greatly in the mix of labourand capital that make up
their inputs. Highly automated operations depend largely on capital; others rely mainly on
labour.
Transformation processes
A transformation process is any activity or group of activities that takes one or more
inputs, transforms and adds value to them, and provides outputs for customers or clients.

Where the inputs are raw materials, it is relatively easy to identify the transformation
involved, as when milk is transformed into cheese and butter. Where the inputs are
information or people, the nature of the transformation may be less obvious.
Transformation processes include:

changes in the physical characteristics of materials or customers

changes in the location of materials, information or customers

changes in the ownership of materials or information

storage or accommodation of materials, information or customers

changes in the purpose or form of information

Changes in the physiological or psychological state of customers.

Outputs
Many transformation processes produce both goods and services. For example, a restaurant
provides a service, but also produces goods such as food and drinks.
Transformation processes may result in some undesirable outputs (such as nuclear waste in the
example above) as well as the goods and services they are designed to deliver. An
important aspect of operations management in some organizations is minimizing the
environmental impact of waste over the entire life cycle of their products, up to the point of final
disposal.
Extending the process-If we add a few more parts to the transformation process, we can see the
key elements that operations managers need to consider. An operation is about designing
services, products and delivery systems;
1. Managing and controlling the operations system.
2. Finding ways to improve operations.

1.3 Company Profile

HyperCITY is one of the best retail shopping stores, supermarket and super store in
India.Founded in 2006, HyperCity Retail (India) Ltd. is part of the K. Raheja Corp. Group, a
leader in the Indian retail sector. K. Raheja Corp helped create modern retailing in India with the
Shopper's Stop, Inorbit Mall and Crossword chains in addition to its successes in realty and
hospitality.
Type
Industry
Founded
Number of Locations
Area Served
Parent
Website

Hypermarket
Retailing
2006
12
India
K. Raheja Corp
www.hypercityindia.com/
Table No. 1.3.1: Company Profile

HyperCITY offers its customers a dominating assortment of quality products at great value in a
large, modern and exciting format. It also offers other value added services like consumer
finance, ATM facility, telecom services, pharmacy, Bakery and Restaurants etc under one roof.
Hyper CITY launched its first store in Malad, Mumbai, which is spread over 1, 20,000 sq ft.

Today, HyperCITY has accomplished a total of 12 stores since inception and have marked its
presence in cities like Mumbai, Hyderabad, Bangalore, Bhopal, Ludhiana, Amritsar and Jaipur. It
offers over 44,000 products sourced from both local & global markets to choose from & boasts
of quality, distinctive, dominant assortment at great value. HyperCITY promises convenience of
everything under one roof & International shopping ambience that rivals the best in the world.
There's more to discover
HyperCITY provides a truly international shopping experience, where customers can shop in
comfort in a large, modern, & exciting environment. It offers a wide and contemporary range of
innovative products, sourced from both local and international markets.
Our Vision & Mission
To be an integral part of customer lives, by offering them high quality shopping experience
through great products at ever better prices.
Partnering For Success
HyperCITY features the best global design, infrastructure and safety features by partnering with
the best talent from around the world.
Caring For the Community
HyperCITYs commitment to the environment extends beyond energy-saving infrastructure and
design.
Products provided by Hypercity:
Hypercity provides an international shopping experience, where customers can shop in comfort
in a large, modern, & exciting environment. With the widest range of products sourced from
around the world, Hypercity is India's favourite Hypermarket. To make shopping easy and
comfortable Hypercity Segregates its Store in 8 sections. Those are,
1) Foods & Grocery:
It contains vegetables, fruits, packet food, staples, meat & fish, beverages, snacks, ready to make
products, spices etc.
2) Health & Beauty:
It contains fragrances, hair care, skin care, baby care, cosmetics, personal care, dental care etc.
3) Home &Furniture:
It contains, home ware, home linen, home dcor, furniture, stationery, toiletries, cleaning needs

etc.
4) Fashion:
It contains all apparels like men and women clothing, baby and kids ware, jewellery, men and
women accessories, foot ware, etc.
5) Electronics:
It contains electronic appliances like, cooler, iron, fans, music players, air conditions, food
makers, pen drive, printers etc.
6) Toys:
It contains soft toys, remote control cars and gadgets, brain boosting games, dolls, beach toys,
puzzles and board games etc.
7) Sports & fitness:
It contains health proteins, gym equipment, cycles, swimming accessories, sports accessories,
indoor games etc.
Services provided by HyperCity
Hyper CITY Extended Warranty :

Our electronics come with a unique feature.

Peace of mind! Pay a nominal fee.

We'll cover mechanical & electrical breakdown.

Get the benefit of genuine parts.

Free parts and no labour charge.

Hassle free repairs.

Inflation proof.

Free replacement if not repaired.

Accepts all International Cards:

Hyper CITY has tied up with ICICI bank for swiping international cards of foreign nationals on
separate EDC machines. The following are the benefits of the facility to these customers:

The customer can choose to make payment in home or foreign currency.

The conversion from foreign currency to INR will be at the current prevailing rate.

Master/Visa will not charge any extra charges to the customer.

The customer gets a bill for the exact amount from the card issuing bank, in home currency,
on a charge slip.

Home Delivery:
Home Delivery: Hyper CITY is committed to extending high standards of customer service even
beyond shopping through our Home delivery service. Our aim is to delight our customers
through timely delivery of goods, every time.
Hyper CITY's home delivery service is aimed at setting the industry benchmark. The mantra of
'Delivery on Time-Every Time' is what underlines the service. Also to ensure that the service
standards are raised and not compromised Hyper CITY has decided to manage the process inhouse.
Home Delivery Team:
Home delivery are handled by a highly capable, friendly and well groomed team comprising of
delivery people, installers, customer service associates etc. who would be adapt in handling
installation of goods ranging from furniture to electronics and health equipment etc.
Exchange Policy
We are pleased to offer exchange within 14 days of your purchase on production of the original
cash memo. The product should be unused, undamaged, in the original packaging and in saleable
condition. Jewelry, watches, cosmetics, mobile phones, MP3 players, innerwear, swimwear and
any altered merchandise will not be exchanged. All appliances & electronics items will be
exchanged subject to the warranty & guarantee terms of the manufacturer, with a valid receipt.
Furniture items will be exchanged or refunded in any circumstances unless it has a
manufacturing defect in the first year of its purchase and if it is not repairable by us once the
furniture has been assembled at the customer's address.
Repairs & Warranty
Comprehensive after-sales services are provided through an exclusive Service Centre backup
facility, on products that have a guarantee or service warranty.
Titan Eye

Titan Eye offers wide range of stylish and contemporary eyewear through exclusive optical
stores across the country. They provide zero-error eye testing, international designs and style
trends, wide range of distinctive, attractive frames, scratch-resistant lenses in a friendly
environment with specially trained retail & clinic staff at selected Hyper CITY stores.

HYPER CITY BRANDS

HYPER CITY has a wide array of exclusive brands across all categories. These brands ensure
increased value to our customers through superior product offerings, quality and uniqueness at
great prices.
FOOD & GROCERY
Everyday

Everyday is dedicated to bring wholesome food to your family at

great prices. Our products are packed under hygienic conditions
and are priced to offer real value, every day. Hyper CITY
encompasses everyday foods like cereals, spices, flour, pulses, dry

Fresh Basket

fruits and other products

Every Fresh Basket product guarantees freshness and quality on a
daily basis, with all the goodness locked in. Fresh Basket offers
the freshest selection of meat, seafood, fresh produce, freshly
baked breads, specialty bread, etc.

Waitrose

Waitrose Voted the top supermarket chain in UK. Exclusively

available at Hyper CITY. Come and taste the best of teas, coffees,
juices, jams and more.

HOME
EBANO

Discover stylish essentials for your home with Hyper CITYs

exclusive brand ebano. ebano presents a selection of basic
products with a modern appeal. Bringing your home to life with
contemporary designs, vibrant colours, great value & is present

across Utensils, Cutlery, Bakeware, Crockery, Glassware,

Pots'n'pans, Implements, Bed linen, Towels, Cushions, Table
AVORIO

linen, pillows and more.

Make your home a more luxurious place with Avorio, the
exclusive brand from Hyper CITY. AVORIO offers exclusive,
versatile and classic designs to enhance your lifestyle. Avorio
spans Implements, Pots'n'pans, Glassware, Cutlery, Crockery,
Towels, Bed linen, Table linen, Duvets & quilts and more.

FASHION
JOOJOOBS

Discover Fashion for your little ones!! The Joojoobs range of

comfortable garments for infants includes designer infant wear
and infant western wear. The range combines the finest quality
fabrics & vivid colors to create a high value range of infant wear.

CITYstyle

CITY Style Offers the latest trends in clothing in the market, at

prices that are affordable.

RIVERinc

A range of quality denims for men, ladies and kids. The range
comprises of basic denims, fashion denims, tees, cargos, denim
shirts and jackets.

APPLIANCES
TECHNIX

Our Technix range of appliances will be available across

microwaves, cook-tops and mixer-grinders.

SPORTS
RALEIGH

The Raleigh Series of bicycles are available exclusively at Hyper

AWARDS & RECOGNITIONS

International Awards
HyperCITY, Mumbai won The Award of Merit for Large Format Specialty Store at the
United States International Design Awards in New York on 15th January, 2007. This is
the first time that anCITY.
IndianRaleigh
Company
has of
received
an award
like brands
this. This
the 36th
is one
the worlds
biggest
in was
Bicycles.
awards function forRaleigh
the Institute
of Store
Planners/VM+SD
International
bicycles
are simple,
elegant, efficient
and fun.Store
TheyDesign,
are
New York.
designed with care and fitted with latest technology. Raleigh has

the following
in bicycles
Mountain
Sport,
Platinum,
HyperCITY was voted
as India'svarieties
top retail
store by -Retail
Week,
a leading
U.K.

Juvenile,
Toy cycles,
etc. It was voted as the 100 Shops You Must
magazine revered by
retailersworld
wide.
MAXIT
The Maxit line of sports equipment and apparels is available
Visit, across the world and was featured amongst internationally renowned stores such
exclusively at Hyper CITY. Maxit stands for - Maximum Range,
as Bloomingdales New York, Selfridges U.K, Louis Vuitton Paris and Carrefour
i.e. it offers a superior line up of sports gear at great value. Maxit
Shanghai. The special report carried weightage for innovation and creativity in retail, as
is available across sports categories like cricket, football,
well as recognizing retail excellence. The report was based on a survey carried out by
basketball, volleyball, boxing and baseball.
Retail Week amongst key players in the retail industry consisting of businessmen,
Table No. 1.3.2: Hypercity Brands
analysts, retail consultants, editors and top shoppers around the globe.
Domestic Awards
Coca Cola Golden Spoon Awards 2009 - Images award for excellence in food retailing
awarded Gourmet city as "Most Admired Food Retailer of the Year" & "Innovative
Retail Concept".

Star Retailer Awards awarded Gourmet city "Debutant Retailer of the Year 2008".

The Bold 100 - IDG India CIO magazine has recognized Shoppers Stop and
HyperCITY as a recipient of 2008 CIO 100 Award. The annual award program
recognizes those executives and organizations those are playing not just to survive, but
to win and embrace great risk for the sake of great reward.

Most Admired Retailer of the Year for Retail Design & Visual Merchandising - Images
India Retail Forum, 2007.

Star Retailer - Value Retailer of the Year 2007.

Asia Retail Congress - Reid & Taylor Retailer of The Year (Hypermarket)

1.4 Statement of problem

The present situation in the market scenario is the survival of the fittest. Thus in orderto
survive in the market for a longer time the retail store and its people must concentrate on the
operational processes carried out in the store on daily basis.
This study helps to determine the importance that must be given to supply chain, ordering,
purchasing, managing inventory, refilling and merchandising the store in order to have growth in
sales, to study the Management information system, to determine the acceptance of the system
by the employees and improve the understanding of the employees towards it.

1.5 Need of Study

The findings of the study will benefit the operations area of retail sector and the people related to
it. It would advantageous as the study covers the practises followed by the retail store, their
comparison to find out the best processes and its benefits. It will also prove beneficial to identify
to identify the processes that will prove preeminent to be followed in order to increase the sales
of the store. It will help understand the significance of the receiving process in the retail sector
which is often overlooked.
The study will benefit the retail sector to understand the need of an effective Management
information system and other technologies to operate the store.

1.6 Scope of the Study

Many factors contribute to a retailer stores overall performance. Literature indicates that
retailperformance should be judged on multiple dimensions: based on customer perception,
based on operational efficiency, and based on financial performance.
The present research study is limited to performance evaluation of Hypercity based on
operational processes & their efficiency, examining the current practices of the operations
department of Hypercity and comparing the best operational processes.

This study will also be useful as follows:

The study is limited to the employees of Hypercity,Vashi. Therefore, targeted employees

are the one who use the operational processes on daily basis.

This study will be a learning device for operation student.

It would be useful to learn the various retail operational departments and their processes.

The study will show how MIS proves useful in managing the inventory, for stock
receiving, sales analysis and creating sales & forecaster reports.

1.7 Objectives of the study

To understand the role of operational department in the growth of HyperCity.

To study the various operational processes used to manage the store.

To study the working of the stock receiving department of Hypercity

To study the role of MIS in operational processes.

Chapter 2
Research Methodology

II. Research Methodology

Research methodology is a way, to systematically solve the research problem. Research in
common place refers to a search of knowledge. Research is an original contribution to the
existing state of knowledge making for its advancements.
This project requires a detailed understanding of the concept Operation
Management. Therefore, firstly we need to have a clear idea of what are the
operational departments, how they are managed in Hyper city, what is the operating
process in which store manages its operations.
The operation management involves managing inventories, receivable and payable
and managing the information of inventories. Therefore one also needs to have a
sound knowledge about purchase order, invoice and the management information
system.
And, in the end, suggestions and recommendations on ways for better management and control
of operations are provided.

2.1 Research design

A research design is purely and simply a plan for a study that guides the collection and analysis
of data.
A good research design has the characteristics like problem definition, specific method of data
collection and analysis. Time required for research project and estimate of expenses to be
incurred. It mainly calls for decisions on research approaches.
The research will be descriptive in nature and survey is used as data collection technique will be
conducted on already existing employees. Questionnaire was used as a data gathering tool.
Descriptive research
Descriptive research refers to research that provides an accurate portrayal of characteristics of a
particular individual, situation, or group. Descriptive research is also known as statistical
research.
These studies are a means of discovering new meaning, describing what exists, determining the
frequency with which something occurs, and categorizing information.
In short descriptive research deals with everything that can be counted and studied, which has an
impact of the lives of the people it deals with.
Exploratory Research

Exploratory research is a type of research conducted for a problem that has not been clearly
defined. Exploratory research helps determine the best research design, data collection method
and selection of subjects.
The results of exploratory research are not usually useful for decision-making by themselves, but
they can provide significant insight into a given situation
Exploratory research can be quite informal, relying on secondary research such as reviewing
available literature and/or data, or qualitative approaches such as informal discussions with
consumers, employees, management or competitors, and more formal approaches through indepth interviews, focus groups, projective methods, case studies or pilot studies.
Research Design
Research Type
Venue
Research Instrument
Research Approach
Sample Size
Type of Questionnaire
Types of Questions
Sampling Plan
Sampling Unit

Exploratory, Descriptive
HyperCity,Vashi
Questionnaire, Observation
Survey Method
Employees-25
Structured and unstructured
Open as well as close ended questions
Respondents are employees of receiving
department
25
Non-random purposive sampling
Personal

Sampling Size
Sampling Procedure
Contact Method
Data Collection
Primary
Secondary
Data Processing

Questionnaire, Observation
Website
A number of tables to be prepared to bring
out the main characteristics of the collected
data. Inferences to be drawn from the data
collected.

2.2 Primary Data

Table No.2.1.1: Research Design

Data which is collected for the first time is called primary data. In the study primary data
includes the data which is collected from the employees directly with interaction. These
employees are the ones working in the operations department of the store. The study includes
data got with personal interaction.

All data used in evaluation and market studies should be current, relevant, reliable, accurate, and
conceptually correct. This article presents a discussion of each of these terms and their
significance in the context of the data and in the analysis.
The researcher needs to be able to recognize the challenges, understand its significance and
evaluate the applicability of that data in the analysis.

2.3 Secondary Data

Secondary data is data collected by someone other than the user. Secondary data is the data that
have been already collected by and readily available from other sources. Information from
secondary sources, i.e., not directly compiled by the analyst; may include published or
unpublished work based on research that relies on primary sources of any material other than
primary sources used to prepare a written work. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data cannot be
obtained at all.
Secondary data has been gathered by others for their own purposes, but the data could be useful
in the analysis of a wide range of real property. In general, secondary data exists in published
sources.
Common sources of secondary data for social science include censuses, organisational records
and data collected through qualitative methodologies or qualitative research.

2.4 Sample design

Sampling is a practice a researcher uses to draw data on people, places, or things to study.
Sampling allows statisticians to draw conclusions about a whole by examining a part. It enables
us to estimates characteristics of a population by openly observing a portion of the entire
population. The whole that the researcher wants to know something about is the population is
called a sample.
2.4.1 Target Population
Population generally refers to the total of the items or units in any field of research. The target
population is the Employees working in operations department of Hypercity.

2.4.2 Sample Size

Sample size determination is the act of choosing the number of observations or replicates to
include in a statistical sample. For doing the research, sample of 25 employees were taken
2.4.3 Sampling Method: Purposive Sampling (Non-random)
The target population are the employees of Hypercity who are a part of the operations
department. So, for the research to be effective the sampling method used was the non-random
purposive sampling.
This sampling technique provides a focussed effort in gathering rich data to answer the research
question. It allows the researcher to identify the specific individuals who have the information
and experience in that area related to the research question. The researcher is then able to focus
on collecting data from this selected sample of people.

2.5 Methods of data Collection

The following sources have been sought for the preparation report:
Primary data:Data that is collected for the specific purpose at hand is called as primary data. Information
relating to the project was collected during formal and informal discussions with the operation
Manager and Staff of Hyper city.
a) Questioning
Here, the data is collected is by asking questions from whom we are supposed to have
desired information. The question may be asked in written or oral. A format list of question is
often called questionnaire. The questionnaire consists of close-ended and open ended
questionnaire. The study includes questionnaire of 6 questions.
b) Observation
When data are collected through the observation, the researcher do not ask the question,

instead they keep track of the research design which is used in the necessary data collection
in one or both of these two methods.
Secondary Data:
Probably the quickest and the most economic way for researchers to find out the possible
hypothesis are to take advantage of the work of others & of their own earlier efforts. In a
relatively short time, researcher can scan a large volume of possible data. It is generally collected
through secondary sources like newspapers articles, magazines, journals, internet, earlier reports
& surveys.
Secondary data highlights the contextual familiarities for primary data collection. It provides rich
insights into the research process. Secondary data is collected through following sources:

Website
Journals
Magazines
Leaflets

2.5.1 Instrument of data collection

These include Questionnaire, Interview, Observation and Reading. Essentially the researcher
must ensure that the instrument chosen is valid and reliable. The validity and reliability of any
research project depends to a large extent on the appropriateness of the instruments.
Questionnaire
This is a data collection instrument mostly used in normative surveys. This is a systematically
prepared form or document with a set of questions deliberately designed to elicit responses from
respondents or research informants for the purpose of collecting data or information.

It is a form of inquiry document, which contains a systematically compiled and well

organized series of questions intended to elicit the information which will provide

insight into the nature of the problem under study.

It is a form that contains a set of questions on a topic or group of topics designed to

be answered by the respondent.

The respondents are the population samples of the study. The answers provided by the
respondents constitute the data for the research.

Structured questionnaires
They are those in which some control or guidance is given for the answer. This may be described

as closed form because the questions are basically short, requiring the respondent to provide a
yes or no response, or checking an item out of a list of given responses.
Unstructured questionnaire
This type of questionnaire is also termed as open-ended or unrestricted type of questionnaire
which calls for a free response in the respondent's own words. The respondent frames and
supplies the answer to the question raised in the questionnaire. It also constitutes questions which
give the respondent an opportunity to express his or her opinions from a set of options.
Observation
The study of photographs, objects, computer software and instruction leaflets fall within this type
of data collection procedure. The procedure should be unobtrusive to enable informants to share
their reality directly with researchers. It is creative and captures attention visually. The presence
of a photographer or the video technician may be intrusive and influence responses.
Participant Observer
In this type of observation the researcher lives as a member of the subjects of the study while
observing and keeping notes of the attributes of the subject that is being researched so that he can
directly experience, the phenomenon being studied.
Non-Participant Observer
In this approach the researcher does not live as a member of the subjects of the study. The
researcher watches the subjects of his or her study, with their knowledge of his status as a
researcher, but without taking an active part in the situation under study.
2.6 Fieldwork
During the field operation, all possible efforts were made to minimize the errors so that the data
collected may not provide wrong information. Caution was taken at every step while the
respondents were filling up the questionnaire. A lot of time was given to the respondents so that
they could understand the question asked.
2.7 Data Analysis Techniques
There are two main methods of Data Analysis: Qualitative Data Analysis and Quantitative Data
Analysis.
The Qualitative method is a conception of working procedures associated with that the

researcher himself/herself is part of the social reality being analyzed. The data collection and
analysis is performed at the same time and in interaction. Therefore, such studies have high
flexibility.
The Qualitative method aims to accomplish a complete description of the investigated area, but it
tends to include smaller populations than quantitative investigations. Advocates of quantitative
studies therefore criticize the qualitative method because of its subjectivity, since the gathering of
facts and the results from the analysis to a very high extent is dependent on individuals.
Qualitative research is a set of research techniques, used in which data is obtained from a
relatively small group of respondents, and not analysed with statistical inferences.
In this Project Qualitative Data Analysis technique is used.
2.8 Limitations
Relatively small sample size
The people required for conducting survey associated with the questionnaire are simply the
employees working in the operations department itself who have gain expertise in it. Therefore,
the sample size is relatively small.
Frequent Errors
Errors can occur during the transcription process. Different people may interpret comments
differently.
Inability of the respondent to provide information
Despite of the willingness to cooperate, the employees were unable to give accurate information
on questions asked. In other cases, the employees were unable to remember the accurate facts.

Chapter 3
Operational Processes at Hypercity

3.1Operational Departments of Hypercity

3.1.1 SST Stock Service Team
3.1.2 Receiving
3.1.3 Data Entry
3.1.1 Stock Service Team
Stock service team is the one which manages the stocks which are ordered by the buyer from the
vendor and is delivered by the vendor. They are responsible for classification of the stocks or
inventory by assigning code numbers for identification. This code assignment is concerned with
the Stock Keeping Unit.

Stock Keeping Unit- SKU is a unique combination of all components that are
assembled into purchasable items. Therefore, any change in packaging or product is a

new SKU.
SKUs used at Hypercity
SKU is a combination of units for e.g.: 10003256; its of 9 digit which uniquely
identifies the specific items. Whenever an item comes into the store the unique SKU
is given by which the item is being identified. Different code or SKU is given to
different items according to their nature, type and characteristics. All the entries are
made in the system when it comes in the store and all the items along with their SKU
numbers are stored in the system so that there should not be any confusion while

evaluating and managing the inventory.

International Article Number (EAN)
An EAN-13 barcode (originally European Article Number, but now renamed
International Article Number even though the abbreviation EAN has been retained) is
a 13 digit (12 data and 1 check) bar-coding standard which is a superset of the
original 12-digit Universal Product Code (UPC) system developed in the United

States.
Stock service team is also responsible for managing following tasks:
i Weigh Calibration & Scanning
ii Ticketing(Shelf-RMP)
iii Price checking

Weigh Calibration & Scanning

Calibration of weights, means determining its exact mass, which is done by comparisons

between reference and test weights. Weight calibration is an intensive and accurate process,
which is likely to become even more important as more industries performing routine tests of
their weighing equipment to improve their processes, herewith reducing quality issues, thus
saving money.
The receiving team loads its purchase order on a handheld scanner device. This helps
reduce manual entry (and its accompanying errors). Once the items are received, the
warehouse management system prints out a 'put-away' document. This document is now
available on the scanner and guarantees that a DC staffer puts items away correctly. Finally,
when it is time for inventory to be moved to a store a 'pick' document is assigned to a 'picker'
using a wireless hand-held scanner. This document shows the exact location of a product and
the number of pieces to gather. If an item is not on the pick list an error message informs the
picker.
ii

Ticketing

Ticketing is much more essential than its looks because everyday new products come on to the
floor. The new SKU no. is allotted to them & therefore its necessary to be cautious so that all
problems which are related to wrong inventory can be eradicated. A ticket generally consists of:

Product name & size.

Offer product category.
Stock keeping unit (SKU).
European article number (EAN).
Bay number.
Vertical height of shelf in bay from downwards to upwards.
Horizontal location number of shelf from left to right.
Facing.
Height.
Depth.
Maximum retail price (MRP).
Hyper CITY price.

A Hyper CITY ticket can be best understood through following diagram:

Figure No. 3.1.1: Hyper City flash Ticket

Key points to remember about ticket

If our price is reflected in:

o RED COLOUR it indicates markdown (M).
o YELLOW COLOUR it indicates promotion (P).
o GREEN COLOUR it indicates new launch (N).
Offer product category is represented by various alphabets which represents
following:o P Promotion.
o R Regular.
o G General.
o M Markdown.
o N New.
o A Active.

iii

Price checking

It is a process of checking the prices of the products whether the prices of the SEL(Shelf
Edge Label) prices are matching with the system or not. If the prices are not matching then

SHL is changed with new prices, this process is known as price checking. By this process
inventory is properly managed, so this process helps in managing the inventory.
3.1.2

Receiving Department

The department which perform the function of Receiving of the product from different vendors
as quality prescribed by the Buyers is known as receiving department.
Receiving department plays the major role in managing inventory. During receiving from the
back gate the employees manage inventory and place the inventory in the proper way at their
places. SAV, RTV, FREE GIFTS are also managed by the inventory management team.

Key terms while receiving stocks from vendor

Purchase Order
A purchase order is a document sent to a supplier or vendor, authorizing shipment of a product to
the customer at a specified price and terms. The creation of a purchase order creates a legally
binding contract which cannot be changed without the consent of both parties. A customer may
sometimes create an open or standing purchase order which allows the customer to order
quantities of the product(s) from the vendor over a period of time (usually a year) at the specified
price. Open POs are often used for services which occur over a period of time.
The typical sections of a purchase order are:

Date
The purchase order number
Names and addresses of both the customer and the supplier/vendor.
Description of the items being ordered, the cost for each, and the total amount.

The PO number is an important reference for both the customer and the supplier Also Known As:
Purchase Requisition.
Companies use purchase orders for several reasons:

Purchase orders allow buyers to clearly and explicitly communicate their intentions to

sellers
Sellers are protected in case of a buyer's refusal to pay for goods or services
Purchase orders help a purchasing agent to manage incoming orders and pending orders
Purchase orders provide economies in that they streamline the purchasing process to a
standard procedure

Figure no. 3.1.2: Format of Purchase Order

Commercial lenders or financial institutions may provide financial assistance on the basis of
purchase orders. There are various trade finance facilities that almost every financial institution
allows to business people against purchase orders such as:
Before Shipment credit facility

Post Shipment credit facility

Trade Finance facility
Foreign Bill Purchase credit facility
Bill retirement credit facility
Order Confirm

Invoice

An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale
transaction and indicating the products, quantities, and agreed prices for products or services the
seller had provided the buyer.
Payment terms are usually stated on the invoice. These may specify that the buyer has a
maximum number of days in which to pay, and is sometimes offered a discount if paid before the
due date. The buyer could have already paid for the products or services listed on the invoice.
A typical invoice contains
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
xii
xiii
xiv

The word invoice (or Tax Invoice).

A unique reference number (in case of correspondence about the invoice)
Date of the invoice.
Credit terms.
Tax payments if relevant (e.g. GST or VAT)
Name and contact details of the seller
Tax or company registration details of seller
Name and contact details of the buyer
Date that the goods or service was sent or delivered
Purchase order number (tracking nos. requested by the buyer to be mentioned on the invoice)
Description of the product(s)
Unit price(s) of the product(s) (if relevant)
Total amount charged (optionally with breakdown of taxes, if relevant)
Payment terms (including method of payment, date of payment, and details about charges for late
payment)

Figure no. 3.1.3: Format of Invoice

Stock receiving processes
i

FMV

Fair market value (FMV) is an estimate of the market value of a property, based on what a
knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing,
and unpressured seller in the market.
Fair Market Value (FMV) assumes that a buyer and seller are aware of the facts and that the price
in which the property exchanges for is not the result of a forced sale.
The price that a given property or asset would fetch in the marketplace, subject to the following
conditions:

1. Prospective buyers and sellers are reasonably knowledgeable about the asset; they are
behaving in their own best interests and are free of undue pressure to trade.
2. A reasonable time period is given for the transaction to be completed.
Given these conditions, an asset's fair market value should represent an accurate valuation or
assessment of its worth.

DSD

Direct Store Delivery is the term used to describe a method of delivering products from
supplier/distributor directly to a retail store, thereby bypassing a retailers distribution center.
DSD is an alternative distribution model to centralized distribution and tends to be used
extensively in the food industry for fresh products such as milk and bread where minimizing the
number of days in the supply chain is a key concern.

ADSD

Figure no. 3.1.4: DSD network

Auto Direct Store Delivery is also the method of delivering products from supplier/distributor to
the retail store but in this process the stock is not scanned and brought directly to the floors. The
number of products or amount of stock sold on the floors is recorded and the data is given to the
vendor who then generates a bill of stock which is sold.
Purchase Order Receiving
The purchase department prepares a purchase order for the supply of materials. The purchase
order is a contractual agreement with the supplier for the supply of materials. Purchase order is
prepared in five copies, the original copy is sent to the supplier, the second copy for receiving
department, third for account department, fourth for initiating department and fifth one is
retained in the purchasing department for reference.

The receiving department performs the function of unloading and receiving of materials
dispatched by the supplier. The receiving department verifies the materials with the help of a
delivery note and the copy of the purchase order after receiving the delivery of goods. The
supplier sends detailed information and an invoice of the materials supplied by it. It has to verify
and check the quantity and physical condition of materials by making a comparison of the
purchase order and the materials received.
RECEIVING PROCEDURE:
1

Unloading and checking the vehicles- In hypercity the number of containers or package of
materials unloaded from the carrier's vehicle is checked against the carrier's manifest (freight
bill or delivery order) to ensure that all the full consignment or order has been delivered. All
packages of materials are also inspected for external damage; any damage found is inspected
by the carrier's representative and noted on the receipt where the receiving clerk signs.
Failure to follow this procedure before accepting a shipment or delivery can relieve the
carrier of all liability, except liability for concealed damage not evident until the container is

unpacked.
Unpacking and inspecting the material-A receiving clerk is held responsible for three step
verification.
a First, he or she checks the material received against the supplier's packing slip and
against a copy of the firm's purchase order to verify that the correct items have been
b
c

shipped.
Second, the quantity of the shipment is verified in the same manner.
Finally, the clerk inspects the general condition of the material to determine whether any

external damage was incurred during shipment.

Completion of the receiving report- In hyper city the paperwork system used varies
significantly from company to company. In some companies, a multipart receiving report
form is produced as a by-product when the purchase order is generated. When the receiving
clerk has finished the inspection, he or she completes the form by recording the quantities of
the items received, indicating those that are still open, and noting any other useful
information on the form. In other firms that utilize a computerized purchasing/inventory
system, the clerk records the receiving data on the receiving report or a short form which a
data entry clerk keys the data directly into the computer system. The system then updates the
order and inventory records and may also generate a receiving report in either hard copy or
electronic form. Regardless of the system used, four operating groups generally require

notification that the material has been received: the requisitioned, the purchasing department,
4

the accounting department, and the inspection department if technical inspection is required.
Delivery of the material- For non-stock materials, the receiving department is usually
responsible for delivery - directly or via an internal delivery service. In the case of inventory
materials, the practice varies. In some firms, the receiving department is responsible for
internal deliveries, while in others this function is performed by an internal transportation
service. In still others, stores clerk are responsible for picking up their own materials. Upon
delivery of the materials, the recipient customarily signs the receiving report or a delivery
receipt, relieving the receiving clerk of further responsibility for the material.

It should be noted at this point that in some firms not all delivered materials go through the
receiving operation, depend on the inventory and purchasing method applied by the company,
e.g., when a company apply just in time purchasing shipment, sometimes the delivery is directly
to the point of use, so the receiving is bypassed.
5

Checking and Passing Bills for Payment-When the invoices are received from the supplier,
they are sent to the store and accounting departments for the verification of the quality and
price of materials mentioned in the invoices. After checking the required documents, the
store department requests the accounting department for making the payment of the invoice
to the supplier.

PO receiving Flowchart

Chart No 3.1: Purchase Order Receiving Process

3.1.3 Data Entry

a

Bill Check

Payables shares purchase order information from your purchasing system to enable online
matching with invoices. Match your billed (invoice) items to the original purchase orders to
ensure that you pay only for the goods or services you ordered. If you are billed for an item
over the amount and quantity tolerances you define in the Invoice Tolerances window, during
Approval, Payables applies a hold to the invoice which prevents payment.
b Quantity Difference note
When you match an invoice to a purchase order, payables ensures that you match only to
purchase orders for the supplier on the invoice and that the purchase order and invoice
currency match.
Approval validates the matching, tax, period status, exchange rate, and distribution
information for invoices you enter and automatically applies holds to exception invoices. If
an invoice has a hold, you can release the hold by correcting the exception that caused
Approval to apply the hold and then resubmitting Approval. You can manually release certain
invoice holds even if you have not resolved the matching error condition.
Approval Example
For example, you have three invoices on matching hold.
Invoice 1: The first invoice is on matching hold because the quantity billed exceeds the
quantity received.
Your receiving department receives the goods and records the receipt information.
Your invoice now matches the receipt and Payables releases the hold when you submit
Approval.
Invoice 2: The second invoice is on matching hold because the invoice price exceeds the
purchase order shipment price.
A supplier sends a credit to correct the amount due on a previous invoice. After you enter the
credit and match it to the same purchase order, your invoice now matches the purchase order
and Payables releases the hold when you submit Approval. Use Approve Related Invoices in
the Invoice Actions window to submit Approval for both the credit and the original invoice.

Invoice 3: The third invoice is on matching hold because the quantity billed exceeds the
quantity ordered.
You increase your tolerance levels using the Tolerances window. Your invoice now
matches your receipt and purchase order within your newly-defined tolerance levels and
Payables releases the hold when you submit Approval.
c Bill Matching
When you match an invoice to a purchase order, Payables creates invoice distributions
using the purchase order distribution accounting information. You cannot delete invoice
distributions created through matching. If you incorrectly match an invoice to a purchase
order, you must cancel the invoice or reverse the individual distributions to cancel the
match.

3.2 Other daily operational processes at Hypercity

PICS-Perpetual inventory Count Sheet
PICS is a process of calculating variance of the products and preparing a sheet of physically
counted inventory that sheet is known as PICS. The sheet which is prepared matched with the
system the difference is calculated is known as variance. This is a process of managing inventory
by physically counting products of each and every SKU and then matched with the system
showing inventory of each SKU.
FMR check- Floor Movement Register
It is the register always placed on the floor to check out the employees scheduling. This floor
register is placed for the purpose, if any employee has to go from floor; he/she have to register
themselves on floor register. By this anybody would come to know that which employee is
missing from his/her place. Noticed where they had gone and at what time, this process is known
as FMR check.
OOS- Out of Stock
When system show that this product have zero inventory then we can say that product is out of
stock this is known as Out Of Stock and then purchase order list is prepared and send to the
Buyer.

Negative Inventory
When inventory or stock is shown negative in the system that inventory is known as negative
inventory. To check negative inventory, if there are two products having different SKU numbers
and different bar codes one product is sold on the other barcode. For example: If A product gets
finished and B has the inventory of two units. Product A is of Rs 100 and Product B is of Rs
200 somebody by mistake Product B is kept on A SKU by which pricing mistake would be
there and due and due to which product B would be billed at price A by which earlier system
shows the inventory of A was zero but now after billed inventory of product A gets negative
this is known as negativeinventory. A special procedure is followed to adjust negative inventory.
Refilling
It is a daily activity process of filling the goods in their shelves so that product should be placed
on bulk quantity that is known as refilling.
Visual Merchandise
It is a process of managing the store merchandising on unrelated Product to attach customers by
keeping flowers on cooler this process is known as visual merchandising so that visually it looks
good. There is a general tendency of the buyers that they get attracted to those things which are
good looking in their outward appearance. So, it is very important for any retail store to create
pleasant visual merchandise which shall catch the eye of the customer and they should get
tempted to enquire about it.
Code Management
It is basically to check the expiry date of the products. In this process, it is calculated for next
three months and the product which has nearest expiry date is kept in front and rest are placed
sequentially behind it. The products which get expired are taken to the back store and their bar
codes are changed with new expiry dates if those products are of Hypercity brand. Code
management team fills a form and makes a full report that how much products are getting
expired and given to the receiving department. By this way expired inventory is removed out
from the floor.

First step to collect or to make the monthly SKU list from 1st to 30th in which coding
have to do.

A file is made in which it is calculated for the next three months and according to that
sheet is prepared. The main focus of the code management team is on the latest months

expiry.
Last two months expiry list put on the MMS so that expiry would be updated and every
one would get aware. But for this month expiry a special list is prepared and that list is

sent to the buyers so to take further decisions.

If the product would not satisfy RTV criteria then it costs the company, due to which
BOGOF (BUY One Get One Free) offer is created due to which some price would be
received by the company rather to get Zero amount.

Floor Walk
It is a process of checking the Hygiene, ticketing, merchandising etc that whether the products
are placed correctly or not, this process of checking out positive and negative points by taking a
walk on the floor is known as floor walk.

3.3 Operational Processes for Managing damages

SAV- Stock Adjustment voucher
It is basically used when Product gets defective due to any reasons (expiry, broken, leakage etc.)
and it has no usage value then voucher is filled to adjust that stock which is removed from the
inventory that is known as Stock Adjustment Voucher.
RTV- Return to Vendor
Return to vendor, vendor claims, and vendor returns all refer to the act of filing a claim against
your vendor for damages, shortages, or incorrect products in their product shipment. RTV is
when you file a claim against your carrier for losses or damages that they caused in transit. It is a
process of Hypercity under which damaged products are returned to the vendor.
At Hypercity, all the products which are damaged or needs to be sent back to vendor for reasons
like defective/bad quality/wrong price, etc are collected at one allocated place in the section and
at 6:00 pm daily the details of the same is entered in the return to back store memo and handled
over to the receiving manager.
When to Return to Vendor

If your vendor loaded the trailer and did not allow the carrier to inspect it, then you would
use the return to vendor process, rather than filing a concealed damage claim. Carriers
typically have the right to inspect a load when it is handed off to them.

If your vendor sent you the wrong product.

If you need to make a return to your vendor due to your own ordering error (in this case
the vendor may charge you restocking or administrative fees).

The Return to Vendor Claim Process

The stores responsible individual should submit the RTV claim via email, mail, or fax to ensure
that they have a paper trail. To ensure that they have included all necessary information, they use
a RTV claim form. This vendor claim form is sent to the vendor and a copy is sent to the
companys accounts payable department. This ensures that your company does not pay the
invoice.
Vendor Return Details
When you file the vendor return claim, collect the following information from the purchase and
provide them with your claim:

Claimant contact information

Carrier contact information

Shipper contact information

Reason for vendor claim

Purchase order number

Bill of lading number

Delivery receipt a copy is acceptable

Load date

Ship date

Seal number

Quantity

Description of the product

Value per unit

Total value

Return to Vendor Supporting Documents

You should also include the following documents to support your vendor claim:

Original shipment invoice

Notification of loss

Delivery receipt (copy is acceptable)

Invoices for repairs or replacements

Copies of request for inspection required if claiming damaged product or

concealed

Inspection report, if completed

Waiver of inspection by carrier

Explanation of how losses were calculated

Photographic evidence of any damage

3.4 Management Information System

Maintaining such a huge store is much difficult process for its management team but this seem to
be possible because of their effective management information system (MIS).
A management information system (MIS) can be defined as a system that:

Provides information to support managerial functions like Planning, organizing, directing,

controlling.
Collects information in a systematic and a routine manner which is in accordance with a

well-defined set of rules.

Includes files, hardware, software and operations research models of Processing and storing,
retrieving and transmitting information to the users.

A management information system (MIS) is a subset of the overall internal controls of a business
covering the application of people, documents, technologies, and procedures by management
accountants to solving business problems such as costing a product, service or a business-wide
strategy.
Management information systems are distinct from regular information systems in that they are
used to analyze other information systems applied in operational activities in the organization.
The term is commonly used to refer to the group of information management methods tied to the
automation or support of human decision making, e.g. Decision Support Systems, Expert
systems, and Executive information systems.
An effective MIS has the following objectives
1

Facilitate the decision making process by furnishing information in the proper time frame.

2
3

This helps the decision maker to select the best course of action.
Provide requisite information at each level of management to carry out their functions.
Help in highlighting the critical factors to the closely monitored for successful functioning of

the organization.
Support decision-making in both structured and unstructured problem environments.

MIS systems at Hypercity

The MIS systems at Hypercity are deployed by JDA software solutions. They deployed an
advanced store replenishment solution that helps them to replenish the stocks back to the shelf at
a rapid pace.
3.4.1
3.4.2

Distribution centre Management System

MMS Inventory Count System

3.4.1 Distribution Centre Management System

The receiving department uses the Distribution Centre Management System to keep records of
the stocks received by the receiving department of Hypercity. This MIS system is useful in

keeping the records of inventory and the details of authorised person accepting the inventory
from the vendor.
Distribution Center Management System (DCMS) is a user friendly Warehouse Management
System (WMS), designed to track the activities performed in a Distribution Center (DC)/
Warehouse. It automates the entire process flow of receiving, managing and shipping goods to
customers from the warehouse. DCMS solutions are designed for both large and small scale
businesses.
DCMS helps warehouses to remove the risk of stock pile-up, stock outs, pending orders and loss
of sales due to customer dissatisfaction.
A typical list of modules for DCMS can be as follows:
i

receiving

ii

put-away

iii

order processing

iv

replenishment

pulling

vi

restocking

vii

picking

viii

validation

ix

sorting

shipping

Features of a DCMS also have the following:

crate management

supervisory control

reports

Figure No. 3.4.1: Distribution centre Management System

3.4.2 MMS Inventory Count System

Hypercity uses a Merchandise Management System for generating their daily sales and inventory
report. The leading host transaction solution for the IBM iSeries environment, JDA Merchandise
Management System / MMS offers a short implementation timeframe to quickly enable retailers

to drive sales, margins and cash flow by getting the right products to the right place at the right
time.
The application suite includes the following:

Inventory Control and Procurement

Buyers Workbench

Vendor Management

Merchandise Receiving, Allocation and Replenishment

Distribution Center Management

Price Management

Promotional Management

Financial Control

A system of records maintained by controlling department which reflects physical movement of

the stock and their current balances. The perpetual counting system can save money, increase
accuracy of the count, and reduce disruption in your operation during the count.
PICS is a process of calculating variance of the products and preparing a sheet of physically
counted inventory that sheet is known as PICS.
Once the physical count of the stock is completed during the receiving process, the team has to
carry out inventory count in the system.
Steps involved in Inventory Count System:

Purchase Order Receiving on the Hand Scanner

In addition to being able to receive items for which Purchase Orders have been raised on the
touchscreen, items such as raw materials (using an EAN128 barcode) and any Dry Goods items
can be received using our Purchase Order Receipt application for the handheld scanner.
Using the handheld scanner for raw material receipt allows each case scanned to be recorded as a
separate item and the weight, pack date and product are all stored instantaneously. The scanner
will allow for the selection of Purchase Orders to receive against and even allow items to be
moved from one Purchase Order to another if a mistake has been made.

Figure no. 3.4.3: Handheld Scanners

At Hypercity, when a product arrives at the DC, the receiving team loads its purchase order on a
handheld scanner device. This helps reduce manual entry (and its accompanying errors). Once
the items are received, the warehouse management system prints out a 'put-away' document. This
document is now available on the scanner and guarantees that a DC staffer puts items away
correctly. Finally, when it is time for inventory to be moved to a store a 'pick' document is
assigned to a 'picker' using a wireless hand-held scanner. This document shows the exact location
of a product and the number of pieces to gather. If an item is not on the pick list an error message
informs the picker.

Chapter 4
Data Analysis and Processing

1. Which operational department activity is more important in growth of HyperCity?

a.

SST

b.

Receiving

c.

Both

Department Activity

SST; 8%

Receiving; 32%
Both; 60%

Chart No 4.1: Operational activity Important for growth

Interpretation: The pie chart shows that 8% of the employees think that SST i.e. the stock
service team is more important for growth, whereas 32% people think that receiving activity is
important. But almost 60% of people think that both these departments are important for growth
of Hypercity.Therefore, for growth and increasing sales of Hypercity both the operational
departmental activities are important. Even if one activity is not followed correctly then it may
hamper the sales of Hypercity.

2. What is the frequency of following operational processes being followed in the store?
Processes

Daily

Once
week

Twice
week

Once in
weeks

Once in
month

Inventory Count
Stock Receiving
Code Management
Visual Merchandising
Refilling
Floor Walk
RTV

Process Frequency
30
25
20
15

Daily
Once in a week
Twice in a week
Once in 2 weeks
Once in a month

10

Employees

5
0

Processes
Graph No 4.1: Frequency of operational processes
Interpretation: The graph shows that Stock Receiving, Refilling and Floor walk are the
activities that happen daily in Hypercity. Inventory count and Code management activities
happen once in a week. Visual Merchandising happens once in two weeks. RTV activity is
carried out once in a month.
This interprets that the employees are aware about the schedule of the operational processes
carried out in Hypercity and these process are carried out accordingly to avoid last minute

confusion.
3. Out of the two processes used to manage the damaged items on the floor which one is the
best?
a. SAV
b. RTV
c. Both

Processes

20%

20%

SAV
RTV
Both

60%

Chart No 4.2: Best process for managing damage

Interpretation: The employees agree that the best process for managing the damaged items is
the RTV process i.e. Return To Vendor but RTV is not always possible in all circumstances.
When the damages occur after receiving the stocks inside the store or warehouse in such cases
we cannot return it to vendor. It is only possible if the vendor agrees to accept such stocks if it
fits their policy. Otherwise, the damaged items are managed by the SAV process. In this process
a voucher is filled to adjust that stock and find solutions to repair and resale the items on the
floor.

4. If one of the operational processes is not used as per their regular schedule, will it have an
impact on sales?
a. Yes
b. No
c. Maybe

Sales

Yes

16%
No

Maybe

20%
64%

Chart No 4.3: Impact on sales

Interpretation: The pie chart states that the sales will hamper if any one of the operational
processes is not implemented as per their regular schedule. In order to keep the store to be
operational in a long run and to smooth up or increase the sales the store must follow the agenda
of operational processes.
5. Can you describe the standard working procedure followed by the stock receiving department
of Hypercity?
i.

Firstly quality of the product is checked.

ii.

Secondly they measure weight or quantity to receive.

iii.

Then rates or prices are verified and send the list to the internal receiving department
where prices are verified.

iv.

If products get selected then that products are entered to the inventory department after
uploading on the server or mms system that this much inventory received and on that
prices are also uploaded.

v.

Then the ordered received send to the inventory department.

6. Which one of the stock receiving processes are the best?

a. FMV
b. PO
c. DSD
d. ADSD

Processes

12%
16%
60%

8%

FMV
PO
DSD
ADSD
Other (PO & FMV)

4%

Chart No 4.4: Best process stock receiving process

Interpretation: Some employees were of the opinion that PO i.e. purchase order receiving
process is the best, while other were of the opinion that only the implementation of the PO
process cannot be said to be best however combination of process can provide best results. The
combination they chose was of PO and FMV.

7. Are the goods inspected for conformance while receiving the stocks from vendor?

a. Yes
b. No
4%

Yes

96%

No

Chart No 4.5: Inspection for conformance

Interpretation: All the employees agree that the stocks received from the vendor are inspected
for conformance. According to the rules the receiving in charge must verify the invoices and the
purchase orders for correct items and quantity and they must also inspect the quality, damages if
any and hygiene of vehicles and crates. This results into commensurable acceptance and
inspection of stocks.
8. Are non-conforming goods promptly returned to vendor?
a. Yes
b. No

12%

Yes

88%

No

Chart No 4.6: RTV of non-conforming goods

Interpretation: All goods and/or services specified in this order are subject to Purchasers
inspection within a reasonable time after arrival at the ultimate destination. If, upon inspection,
any merchandise is found to be non-conforming, defective, of inferior quality or workmanship,
or fails to meet the specifications of any other requirements of this order then Purchaser may
reject same and return the Non-Conforming Goods to Supplier at suppliers expense. All the nonconforming goods are thus promptly returned to the vendor according to the policies.
9. Which management information systems are used for the operational processes at Hypercity?
Answers:

Distribution Center Management System (DCMS)

Merchandise Management System(MMS)

10. Dose the Management information system responses accurately and timely?
a. Yes
b. No
c. Sometimes

Response
20%
16%

64%

Yes
No
Sometimes

Chart No 4.7: Accurateness of MIS

Interpretation: The pie chart shows that more than 60% of employee say that the MIS system
responses accurately and timely. The remaining employees are of the opinion that the system has
a great response time but they face problems while getting accurate information. The problem
about accuracy is that they often find price differences of certain products in the system.

11. Which one of the following problems mostly occurs while using the MIS systems?
Problems

Very
rarely

Rarely

Occasionally

Frequently Very
Frequently

Less system time-out

Case sensitivity
Difference in prices on
system
Product availability issues

Problems in MIS
25
20
15
10
5
0

No. of Employees

Very Rarely
Rarely
Occasionally
Frequently
Very Frequently

Problems faced in the MIS system

Graph No 4.2: Occurrences of problems in MIS
Interpretation: Out of the total number of problems faced by the staff while using the MIS
system less system time-out (expiry) occurs very frequently. The default time for expiry of the
system is usually 30mins, but at times the system expires in 5-10mins, without any notification.
This compels the agent to go through the entire process of signing-in into the system, which is
quite time consuming.
Other problem faced that occurs frequently is the issue of price differences. When the agent
scans for the price of a particular product, the price for particular product shown beside the
product description is different to that from the price on the package.
These two problems occur in higher percentage than that of the other mentioned problems and

they need to look for solutions to reduce such problems.

12. Has the enhancement of point of sale operations increased the sales due to the introduction of
management information system like the handheld scanners?
a.
b.
c.
d.

Not at all
Very little
Somewhat
To great extent

opinions
12
10
8
6
Staf

4
2
0
Not at all

Very Little

Somewhat

To a great extent

Graph No 4.3: Effect on sales due to introduction of MIS

Interpretation: The graph shows that the enhancement of point of sale operations has increased
the sales to a great extent due to the introduction of management information system like the
handheld scanners. The use of these scanners has reduced time, reduced errors and helped in
maintaining records.

Chapter 5
Findings

Findings

For growth and increasing sales the operational department carries out their activities and

other operational processes according to the schedule.

The operational process like the merchandising, refilling and pricing helps the store in

making the goods available at the shelves at right time, right quantity and at right price.
Stocks are ordered before time to control the stock volume and segregated into various
departments and classified with the help of code assignment. Stocks are maintained in
such a way that it helps the staff to replenish the stocks back to the shelves at a rapid

pace.
The stock received follows the concept of Place for everything and everything in its

place.
To prevent cross contamination color coded crates, separate weighing scales for
vegetarian and non-vegetarian products and separate temperature probes are used for

monitoring temperatures.
At receiving bay the goods are inspected daily for conformance and all the non-

conforming goods are returned to the vendor.

In Hypercity, MMS system is used in every department which helps to take correct
decisions about the inventory, vendor management, price management, financial control
etc.

Along with the MMS system, all department use DCMS system a warehouse management
system which is designed to track the activities performed in a Distribution Centre. It allows
smooth communication among the store and the warehouse to avoid any kind of
miscommunication.

Chapter 6
Recommendations

Recommendations
Hyper CITY should move according to the latest trends and should always be ready to introduce
innovative features into their products so that they can compete with ever changing environment.
According to the trend and for providing the service to the customers online shopping must be
started by Hypercity.
Credit availability for retail traders must be encouraged with a view to expanding employment
and higher utilization of fixed assets. This would lead to less wastage of perishables, enhance
nutritional status of producers and increase caloric availability.
Hypercity should upgrade their MIS systems in order to solve the drawbacks the staff faces while
using the Merchandise management system.

Chapter 7
Conclusion

Conclusion
Finally analysing all the factors responsible for increasing sales and growth of Hypercity I came
to conclusion that Hypercity should give more emphasis on merchandising and analysing the
processes.
Hypercity should efficiently use various inventory management tools to control the stock levels
like ABC analysis, monitor stock levels. They can start an inventory reduction program
whenever cash gets tight and can make strategic decisions to manage inventory and continually
improve the business results.
Hypercitys great mix of daily operational processes makes it organized over other organized
hypermarkets.
The MIS system used to support the operational processes has helped reducing manual entries
which are often accompanied by errors. This provides accurate data entry of stocks and bill
matching with reduction in time.
Hypercity manufactures its own brands like CITY life, Everyday, City style thereby reducing its
unit cost production, enhances its quality and generates competitive advantage over others.

Bibliography
Books:

Donald Harris and David Walters, Retail Operations Management: A Strategic Approach:

Prentice Hall, 1992

Berman Barry, Retail Management- A Strategic Approach: Pearson Education India, 2013
C.R.Kothari, Research Methodology Methods and Techniques: New Age International
Publishers, Second Revised Edition, 2004

Magazine Articles:

Rajeev Kumar, Hypercity: Pushing Profitability through Small-Format Stores, Images

Retail, June 2013

Websites:
Understanding the Receiving Business Process
http://www.oracle.com/pls/psft/

HyperCity Automates Distribution Centers for Efficiency, CIO Team, 30 November,2010

http://www.cio.in/case-study/hypercity-automates-distribution-centers

%E2%80%99-efficiency

Hypercity Company Profile

www.hypercityindia.com/

Merchandise Management System

http://www.jda.com/solutions/merchandise-management-system/

Annexure
A. Questionnaire
1. Which operational department activity is more important in growth of HyperCity?
a. SST
b. Receiving
c. Both
2. What is the frequency of following operational processes being followed in the store?
Processes

Daily

Once a
week

Twice a
week

Once in 2
weeks

Once in a
month

Inventory Count
Stock Receiving
Code Management
Visual Merchandising
Refilling
Floor Walk
RTV
3. Out of the two processes used to manage the damaged items on the floor which one is the
best?
a. SAV
b. RTV
c. Both
4. Will the sales of the store have impact if one of the operational processes is not used as per
their regular schedule?
a. Yes
b. No
c. Maybe
5. Can you describe the standard working procedure followed by the stock receiving department
of Hypercity?
6. Which one of the following stock receiving processes are the best?
a. FMV
b. PO
c. DSD
d. ADSD

7. Are the goods inspected for conformance while receiving the stocks from vendor?
a. Yes
b. No
8. Are non-conforming goods promptly returned to vendor?

a. Yes
b. No
9. Which management information systems are used for the operational processes at
Hypercity?
10. Does the Management information system responses accurately and timely?
a. Yes
b. No
c. Sometimes
11. Which one of the following problems mostly occurs while using the MIS systems?
Problems

Very
rarely

Rarely

Occasionall
y

Frequently

Very
Frequently

Less system time-out

Case sensitivity
Difference in prices
on system
Product availability
issues
12. Has the enhancement of point of sale operations increased the sales due to the introduction of
management information system like the handheld scanners?
a.
b.
c.
d.

Not at all
Very little
Somewhat
To great extent