BPM CASE STUDY ANALYSISON

OPTIMIZING THE PROCESS IN KIRANA STORES

RETAIL SECTOR IN INDIA

•Retailing in India accounts to 14 to 15% of GDP •Organized (20% annual growth rate) and Unorganized Sector• FDI in the Organized retail to grow•1.1 % of the Kirana store closures are due to tough competition with the organized retail and expected to grow.•Therefore a high alarming situation for the local Kirana stores

Source: ICRIER survey on 2000 Unorganized shops

KIRANA STORE

• Owned and operated on a small scale (500sq.ft. or less)

• Run by the owners themselves thus low operational costs

• Customized services• Good relations with the customers including cash

credit

PROJECT OBJECTIVE

• Empower the Kirana stores to compete with the increasing organized retail space

• This involvesAutomation of the process (Inventory

management and Supply chain management)Online ordering Cartel formationCRM

CLIENTS STUDY

• THE “As Is Process” adopted by the Kirana stores should be known

• Visited the Kirana stores in the Pune areaOm supermarket (Model Colony)Jhamwer groceries (Hanuman Nagar)

Our Methodology

• We visited the Kirana stores and found out their processes

• We also visited the Organized retail stores and found out their processes and tried mapping them with the process of Kiranas stores

 • We suggested change in process and automation which

will overcome the identified problem areas and help in growth.

Processes involved in Kirana store

• Customer management and selling

• Inventory and Stock management

• Ordering to suppliers

• CRM

INVENTORY AND STOCK MANAGEMENT

Stock update

Manual accounts Observations Customer

informs

PROCESS FLOW CHART FOR AS IS PROCESS

BPMN DIAGRAM – As is process

S. No. PROBLEM DEFINITION

ANALYSES OF PROBLEM

MEASURE OF RISK

SOLUTION

1. INVENTORY MAINTENANCE

1. STOCK2. EXPIRY3. ORDERS

HIGH

1. DATABASE2. PACKAGING

2. DELIVERY TIME OF THE PRODUCT/COMMODITY

1. SEARCH TIME HIGH

3. SEGREGATION OF ITEMS

1. OLD STOCK2. UNGROUPING

LOW

THE PROBLEMS FACED

S. No.PROBLEM

DEFINITIONANALYSES OF

PROBLEMMEASURE

OF RISK SOLUTION

4. PUBLIC PRESENCE1. ORDERS2. PUBLICITY &

PROMOTIONHIGH

1. Aaramshop.com2. Website3. Just Dial

5. CRM & CREDIT 1. REGULAR CUSTOMERS

VERY HIGH CUSTOMER

DATABASE – birthdays, SMS, Discounts

6. STORAGE1. SHORTAGE OF

SPACE LOWNot Working on this problem as of now

THE PROBLEMS FACED

To be process-automation of inventory process

CRM PROCESS FLOW FOR THE TO BE PROCESS

BPMN Diagram of to be process

SIMULATION OF TO-BE PROCESSIN BONITA STUDIO

Public Presence:

• Collaboration to be done with websites like www.aaramshop.com

• Cartelization can be done between various kirana stores that are present at different locations.

PROPOSED INVENTORY MAINTENANCE SET UP

If the stock is near empty, request for new stock

For the stock near the expiry date ask for replacement

CUSTOMER DATABASE MAINTENANCE

CUSTOMER DATABASE MAINTENANCE

Worksheets –to be processKirana store Automation

Customer order

Taking order

Personal

Telephone

Online ordering

Checking customer database

Updating database

Supply chain Management

Inventory management tool

Checks availability

Checks for expiry

Order for goods

Updating of goods database

CRM

Providing loyalty discounts

Promotion

Benefits Incurred

• Inventory– Stocks will be up to date– Automatic measurement of inflow-outflow– Proactively informs about expiry of stock and hence

helps constant refilling of the shelf on expiry.– Optimized stock handling

• CRM– Create a customer database– Customer credit management– Prolonged Relationship built-up with Customer– Promotional offer communicated using SMS and

website

Benefits Incurred• Order– Increase the visibility with help of website

development

–Tie-up with available online ordering portals like www.aaramshop.com

– Forming an Cartel with Kirana stores in other areas will help reduce the procurement costs and build synergy.