4 Marco Operacional
4.4 Inferencia estadística
Party 1 – Future Value Retail (Modern trade chain known as Big Apple) Party 2 – Vijman India (Distributor of Dabur India Limited)
Purchase Order (See Annexure 5)
Date 02.05.2010 PO No. 4504419715 Net Bill Amount – Rs. 7255
Supply Bill (See Annexure 10)
Date 05.05.2010 Invoice No. B0000273 Net Amount – Rs. 2836
In this case Fill Rate is 39% calculated value wise. Of the 13 SKUs of FEM which were ordered only 5 SKUs were supplied. Replenishment date was within the time limit.
One of the other things I observed in this Purchase Order is that purchase order was
generated on 02.05.2010 which is being 1 week of the month. So while I was there in the Big Bazaar store for Interview, I noticed that there large amount of people who come in the first week of the month as compared to rest of the weeks. When confirming with the authorities I got to know that footfall is 30-35% more in first week of the month as compared to rest of the weeks. This is due to the reason that most of the service class people get their salaries in first 10 days of the month and that is the time when the purchasing power of an individual is the most.
Since first 10 days of the month are very crucial from the sale point of view, there should not be any miss in the SKUs supplied in these particular days. Because unavailability of products can result in not only losing the sale at that point of time, but the customer may also switch to some other brand thereby we as company loose a loyal customer as well.
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MBQ Levels
To keep a steady stock watch for the reorder of basic goods is time consuming and vital to profits. Different stores have different criteria to compute what the MBQ level of an item should be. The retailer can use past sale data of last month or last 3 month’s sale or in some cases where product is seasonal or has a demand in particular season; MBQ levels are decided season wise as well. This profit-enhancing feature uses sales history to calculate scientifically what and when to reorder, with less paperwork and less guesswork. MBQ (minimum base quantity) methodology has been used for efficiently handling the inventory based on past sales track.
While interviewing the outlets and distribution centres of retail chain, when asked about how they are deciding the MBQ level, a lot of inputs came as regards to the factors that they consider while deciding the MBQ level of an item; the same has been put on graph to see what are the factors that are most considered by retails chains.
MBQ level deciding factor
Past Month Sale 27
Past 3 Months Sale 11
Stock in Hand 7
Footfall 21
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Interpretation:-
As we see in the chart that most of the outlets or modern trade chain prefer deciding their MBQ level on the basis of past month’s sale, they have the highest preference with 38%. Next is footfall in a particular outlet, now this depends on various sub factors like what kind of people are actually in and around that area where the outlet is located, the type of income level of people in that area and various other demographics. Footfall got 30% preference while deciding the MBQ level of a particular product. Past 3 months sale of a product got 16% while 10% are in favour stock in hand in that particular store, this factor is considered most by those chains whose inventory management is centrally controlled. And the last with 6% preference is Season. According to me this got the least percentage
because of a limitation that Season factor is considered most in seasonal products and since this question was asked keeping in mind the FEM products not many people preferred this option. 38% 16% 10% 30% 6%
Past Month Sale Past 3 Months Sale Stock in Hand Footfall Season
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Case Experience regarding MBQ Level
I had frequent visits in most of the Big Bazaar stores in the Delhi region in the month of May in different weeks. There I noticed that the MBQ level are decided on the basis of past month sale, but the MBQs of all almost all the bleach products were same irrespective of their demand.
During 1st week of May, the demand for Oxy Bleach and Herbal Bleach was very high in all the stores, MBQ level ordered for both the products was between 24-36 pieces in almost all the stores. But on visiting Big Bazaar Vasant Kunj store I noticed that of 36 pieces, 31 pieces of Oxy Bleach were sold on the very first day of the replenishment of stock, now for rest of the week there were only 5 pieces of Oxy Bleach were left, which ultimately resulted in no stock for next 5 days.
When I visited the store after 15 days, the same scenario was experienced again. When I asked the Dabur promoter in the store, why the same MBQ was given for oxy bleach, the lady there said that she informed the concerned authorities about the same but no action has been taken.
In another experience there was no supply of Oxy Bleach for one week in all the Big Bazaar stores because of blockage of Oxy Bleach Code which resulted in unavailability of Oxy Bleach in all the stores at the time when its demands is reaching its heights.
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