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  • Savemart Case Study

    Diunggah oleh

    Sanchit Gupta
    133 tayangan11 halaman
    The document summarizes warehousing operations at SaveMart, a major Indian retailer. It owns 10 warehouses across the country that each supply 10-20 hypermarkets in their region. The warehouses experience problems like long delays in receiving inbound goods and dispatching goods to stores, high inventory levels and space shortages, erroneous records, and low throughput. Several recommendations are provided to address these issues, such as improving forecasting, implementing case-in case-out picking, and investing in better warehouse layout and technology like RFID.

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    Savemart case study logistics

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    Savemart case study

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    The document summarizes warehousing operations at SaveMart, a major Indian retailer. It owns 10 warehouses across the country that each supply 10-20 hypermarkets in their region. The warehouses experience problems like long delays in receiving inbound goods and dispatching goods to stores, high inventory levels and space shortages, erroneous records, and low throughput. Several recommendations are provided to address these issues, such as improving forecasting, implementing case-in case-out picking, and investing in better warehouse layout and technology like RFID.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    133 tayangan11 halaman

    Savemart Case Study

    Diunggah oleh

    Sanchit Gupta
    The document summarizes warehousing operations at SaveMart, a major Indian retailer. It owns 10 warehouses across the country that each supply 10-20 hypermarkets in their region. The warehouses experience problems like long delays in receiving inbound goods and dispatching goods to stores, high inventory levels and space shortages, erroneous records, and low throughput. Several recommendations are provided to address these issues, such as improving forecasting, implementing case-in case-out picking, and investing in better warehouse layout and technology like RFID.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 11

    WAREHOUSING AT SAVEMART

    Sanchit Gupta | Vishnu Shankar Shukla


    Major Hypermart Retailer in India

    Grown to 154 Hypermarkets by 2014

    Owns 10 warehouses across the country

    Each Warehouse supplies to 10-20


    marts in the region
    Goods Stock Shipping
    Received at Transfer • Dedicated
    WAREHOUSIN W/H Orders Truck for each
    • Manual Received store
    G OPERATIONS Scanning • Rented Trucks
    • Pick list
    • GRN Prepared Generated
    • Goods Stored • Items Picked
    and Scanned
    Long
    Longtime toto
    time Inward
    Inward Long Time
    Long toto
    Time
    Goods
    Goods Dispatch
    DispatchGoods
    Goods

    High
    HighInventory &&
    Inventory
    Space
    Space Poor
    PoorPlanning
    Planning
    PROBLEMS Shortage
    Shortage

    Erroneous
    ErroneousRecords
    Records Low
    LowThroughput
    Throughput
    LONG TIME TO INWARD GOODS

     Negotiate Better contract terms with Vendors to get timely delivery


     Ensure Vendors adhere to deadlines
     Partial Orders Should not be accepted
     Time sheets for trucks to be recorded correctly, and existing
    company rules must be enforced properly
     Bar Coding can be replaced by RFID
    HIGH INVENTORY & SPACE SHORTAGE

     Need to Invest in better forecasting


     Better training to managers regarding product demands
     Disposal of damaged goods
     Minimizing new store opening delays
    LONG TIME TO DISPATCH GOODS, LOW THROUGHPUT
    & POOR PLANNING

     Better warehouse layout


     Training to Pickers
     Fixing the Erroneous Records
     Talking with store managers to implement Case-in Case Out model
    INVENTORY DISCREPANCY
    AFFECTS
    When physical Inventory and on paper inventory do not match
     Delays in order fulfillment
     Wrong Planning
     Failure of Implemented methods of optimization
     Wastage on valuable man-hours for reconciliation
    CASE IN CASE OUT BENEFITS

     Throughput goes up
     Easier for Pickers to collect and sort
     Lesser damage to individual SKU
     Faster response to orders
     Single type of products in Single carton with barcode on the
    outside
    COST ESTIMATES
     Current monthly cost of buying cartons
     15000*55 = Rs. 825,000
     Per day buying cost 825,000/30= Rs. 27500
     The plastic crates can be used for 3 years and cost Rs. 500,000 (1000
    crates)
     The cost saved per day by not using cartons is Rs. 27,500
     Payback period 18.18 as we will recover the costs in saving
     The number of crates to be bought
     15000/15 = 1000
     Cost Savings in 3 Years (Assuming no wear and tear)
     Rs. 29,700,000 – Rs. 500,000 = Rs. 29,200,000
    Thank you!

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