WAREHOUSING AT

SAVEMART
BY GROUP 4
SUMIT, NITIN & SANJULA
 Major Hypermart Retailer in India
SAVEMART

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
W/H Orders Truck for
WAREHOUSING • Manual Received each store
• Rented
OPERATIONS Scanning • Pick list Trucks
• GRN Generated
Prepared • Items Picked
• Goods and Scanned
Stored
PROBLEMS
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