SUBMITTED BY OSWINDA GOMES R-11-17 SYBBA

HOOPOS.COM- ONLINE TOY SHOPPING

HOOPOS.COM was founded in January 2011 with the objective to be the most preferred destination for everything baby, kids and moms-to-be. The mission is to deliver a superior online shopping experience and offer to the customers the largest collection of fun, developmental, everyday essential, and wellness products from across the globe. They have a professional team with deep understanding of the needs of babies, kids and young parents. They believe in providing a superior customer service so that their customers have an enjoyable shopping experience. They carry products ranging from diapers, apparel, baby essentials to traditional toys from across India, and lots of goodies. At hoopos.com they are proud to provide a wide selection of familiar favorites, as well as introduce exciting new brands and products all the time that you and your little one can enjoy. It has its headquarter in Bangalore Karnataka.

Company profile Type: Private Headquarter: Bangalore Product: toys Website: hoopos.com The online shopping means that consumers' trips to the shops are being substituted by delivery direct to customers homes and this is having a direct impact on how retailers manage their logistics functions. Retailers are currently experiencing a switch from traditional retailing to online sales at a rate of some 10% in the short term with most forecasts anticipating e-retailing to continue to replace conventional channels in the future.

Toy Category of the website Infant/Preschool Games/Puzzles

Dolls Vehicles Outdoor & Sport toys Building Sets Arts & Crafts Plush Action Figures & Accessories Learning & Exploration All other How the website functions Access the Hoops.com ite Browse catalogs and search items

Get product information

Customer

Log On to Website (IF USERD ID IS THERE)

If New User Then User Is Authenticated (New Login ID is made by new User)

User Login

Buy the Product

Give Shipping Info Give Payment Info Get Invoice (i.e., Slip)

Get confirmed i.e. Received Product

SUPPLY CHAIN A supply chain involves activities that take place during the entire product life cycle, from dirt to dust, as some describe it. However, a supply chain is more than that, because it also includes the movement of information and money and the procedures that support the movement of a product or a service. Finally, the organizations and individuals involved are considered part of the supply chain as well. When looked at very broadly, the supply chain actually ends when the product reaches its after-use disposal to recycling or back to Mother Earth somewhere.

Oil refinery

Plastic Warehouse Shipping

Metal sheet

Components manufacture

Toy assembling or manufacturer

Toy packing Shipping

Lumber company Customer Pulp Company Paper Company Box makers, printers

Printing

Labels

Logistics
Logistics is a broad function which consists of a series of related activities. You can imagine these by following some materials on their way through an organization. Procurement or purchasing. The flow of materials into an organization is usually initiated by a purchase order sent to a supplier. To prepare this a purchasing, or procurement, department finds suitable suppliers, negotiates terms and conditions, organizes delivery, arranges insurance and payment, and does everything needed to get materials into the organization. Inward transport or traffic moves materials from suppliers to an organizations receiving area. For this, the company chooses the best type of transport (road, rail, air, etc.), design a route, make sure that all safety and legal requirements are met, ensure deliveries on time, keep costs low, and so on. Receiving makes sure that materials delivered match an order, acknowledges receipt, unloads delivery vehicles, inspects materials for damage, and sorts them.

 Warehousing or stores moves materials from the receiving area into storage and makes sure that they are available when needed. Warehousing also looks after stored materials, giving the right conditions, treatment and packaging to keep them in good condition. To optimize storage space and labor, hoops.com splits the warehouse into two storage regions with different storage densities. One region is for picking customer orders and the other holds reserve stock. The picking area is laid out to facilitate efficient picking by a person; this limits the height and depth of the storage racks, as well as the quantity of each Stock Keeping Unit stored in the picking area. As a consequence, the storage density in the picking area is relatively low. On the other hand, the reserve or deep-storage area has high storage density; the purpose of the reserve area is to store larger quantities with the most efficient use of space. Replenishment from outside suppliers will typically come in pallet loads and be first stored in reserve storage. Stock control sets the policies for inventory. It considers the materials to store, overall investment, customer service, stock levels, order sizes, order timing, and so on. Material handling is the general term for moving materials within an organization. Every time that materials are moved around operations, it uses materials handling, whose aim is to give efficient movements, with short journeys, using appropriate equipment, with little damage, and using special packaging and handling where needed. Order picking finds and removes materials from stores. Typically, materials needed for a customer order are located, identified, checked, removed from racks, consolidated into a single load and moved to a departure area for loading onto delivery vehicles. Packaging wraps materials to make sure that they are properly protected during movements so that damage is kept to a minimum. Outward transport takes materials from the departure area and delivers them to customers Physical distribution a general term for the activities that deliver finished goods to customers Recycling, returns and waste disposal. Even when products have been delivered to customers, the work of logistics may not be finished. Sometimes there are problems with delivered materials and they have to be collected and brought back (perhaps because they were faulty, or too many were delivered, or they were the wrong type). Activities that return materials back to an organization are called reverse logistics (compared with forward logistics that made the original deliveries). Location. Logistics activities are usually spread over many locations. For instance, stocks of finished goods are held at the end of production, moved to nearby warehouses, sent to regional depots, put into stores near to customers i.e. in Bangalore itself, passed on to third parties. Reverse logistics returns materials back to an organization after they have been delivered to customers Forward logistics makes deliveries out to customers Logistics management (is the function) that Plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements.

Making sure the customer will pay: Depending of the payment method and prior arrangements, an investigation is to be made regarding the validity of the payment. This activity may be done by the companys finance department and/or a financial institution (bank, credit card brand such as Visa). Thus, the required payment information needs to be transferred to the checking mechanism and sometimes to an outsider. The interfaces between the involved parties and the lines of communication must be both effective and efficient. Any delay may cause a shipment delay, resulting in a loss of good will or, more important, a customer. Checking for in-stock availability: Regardless if the vendor is a manufacturer or a retailer, an inquiry needs to be made regarding stock availability. Several scenarios are possible here, involving the material management and production departments, as well as outside suppliers. Here again, the order information needs to be connected to the information about in-stock availability. Furthermore, if an item has been promised for a delivery it should be deducted automatically from the in-stock inventory. Arranging shipments: If the product is available, it can be shipped to the customer. Products can be digital or physical. If the item is physical and it is readily available, packaging and shipment arrangements need to be made. Both the shipping (packaging) department and internal shippers or outside transporters may be involved. Purchasing and warehousing: Here the seller is a retailer so purchasing from manufacturers is needed. Purchased items can be placed in warehouses close by in Bangalore. Not only is an effective information flow is needed, but also appropriate receiving and quality assurance of incoming materials and products must be done. Once purchasing and production is completed, shipments are arranged. Demand forecast: In the case of non-customized items, a demand forecast must be done in order to determine appropriate inventories at various points of the supply chain. Such a forecast is difficult in the fast growing field. In the case of customized products, it is necessary to forecast the demand for the components and materials required for fulfilling customized orders. Demand forecast must be frequently done with business partners, along the supply chain. Contacts with customers: The salespeople need to keep in constant touch with customers. Starting with notification of orders received and ending with notification of a shipment or changes in delivery dates is to be done. These contacts are usually done via e-mail, frequently generated automatically. Order fulfilment involves both flow of goods (physical or digital) and a substantial flow of information among several units inside and outside the vendor. Therefore, the process needs to be connected not only to existing internal information systems, but also to the information systems of the suppliers, customers and other business partners. Depending on the inventory availability and customer preferences, hoopos.com then quotes a promiseto-ship date to the customer. The promise-to- ship date is the date by which the company promises to ship the order from the warehouse. After the company assigns the order, the order enters the picking queue at the warehouse. The order might wait six to eighteen hours before the items in the order are picked and assembled into a shipment that is then given to a third party carrier to deliver the package(s) to the customer location. The company utilizes its entire inventory, regardless of location, to serve demand. Given that they stock

certain units of inventory in the system, they allocate inventory to warehouses by minimizing outbound transportation costs from the warehouses to customers. When all items in an order are available at the warehouse, the order may wait 8 to 16 hours until the order is released to be picked and sent for shipping. If one or more of the items in the order is not available, then the rest of the order is reserved and waits until the missing items arrive. By re-evaluating the real-time decision, the company can also afford more decision making time. A.hoopos.com offers free shipping within India on all products above Rs. 349. For orders below Rs. 349 hoopos.com will charge Rs. 50 for shipping. They process all deliveries through reputed couriers like Blue Dart and DTDC. If there is no courier service available in your area, they will ship your items through government registered book-post or speed-post. There are no extra taxes, hidden costs or additional shipping charges. The price mentioned on the website is the final price. What you see is what you pay. ESSENTIAL ROLE OF LOGISTICS IN MEETING DEMAND Move to Customers Create

Supply of product

Demand for product

Organize

Operations

Passed to

Other outputs

Inputs needed by operations

Push and pull operations

Hoopos.com offers both pull and push operations for its customers. The concept of pull operations which begin with an order, frequently a customized one and hoopos.com offers customized toys also. This is in contrast with traditional retailing that begins with a production to inventory, which is then sold to customers. In the pull case it is more difficult to forecast demand due to lack of experience. Another factor is that in a B2C pull model, the goods need be delivered to the customers door while in brickand-mortar retailing, the customers come to stores. Hoopos.com also offers push operations to its customers. In Hoops.com, customers cannot control how their demand will be served. Rather, the company will decide which warehouse or drop-shipper serves what demand. As a consequence, the company utilizes all of its warehouses or fulfillment centers to serve the customer demand. This centralized demand allocation poses new challenges and opportunities to minimize operating costs.

Vendors
Have vendors from different parts of India but major vendors are from Bangalore, Gujarat and Delhi. The Vendors first send their catalogs to the company where they have to describe their product and various specifications about the product. After which a representative visits the vendor to check on all the details and after thorough verification and quality standard tests, orders are placed with the vendor for a specified quantity. After which the orders are placed as per the demand and minimum inventory requirements and products of certain brands and types are always ordered in a specified quantity with regularity.

Forecasting
The managers must forecast the number of orders received each month. The data of the last year is given below Months January February Orders Received (in thousands) 250 220

March April May June July August September October November December

180 200 10 20 40 50 80 350 50 300

Using the 3 month weighted moving average forecast the number of orders received from the month of April to December. Use weights of 0.3, 0.2 and 0.1.(numbers are assumed) Using the 3 month simple moving average forecast the number of orders received from the month of April to December

Solution
Weighted moving average F April=180(0.3) +220(0.2) +250(0.1) = 123 F may =200(0.3) +180(0.2) +220(0.1) =118 F June= 10(0.3) +200(0.2) +180(0.1) = 61 F July= 20(0.3) +10(0.2) +200(0.1) =82 F august = 40(0.3) +20(0.2) +10(0.1) = 17 F September= 50(0.3) +40(0.2) +20(0.1) =25 F October=80(0.3) +50(0.2) +40(0.1) =38 F November=350(0.3) +80(0.2) +50(0.1) =126 F December=50(0.3) +350(0.2) +80(0.1) =93 Simple moving average F April=180+220+250/3= 483.33=484

F may =200+180+220/3=453.33=454 F June=10+200+180/3=270 F July= 20+10+200/3=223.33=224 F august = 40+20+10/3=63.33=64 F September= 50+40+20/3=96.97=97 F October=80+50+40/3=143.33=144 F November=350+80+50/3=446.67=447 F December=50+350+80/3=426.67=427