Direct Store Delivery Approach

3-Sept

Approach Note
Direct Store Delivery

Direct Store Delivery Approach

Project Name: Direct Store Delivery

Date: August 26, 2014

Document Origin
Version
1.0

Date
August 26, 2014

Description of Changes
Document Prepared

Prepared by
Akansha Agarwal
Kumar Chajed
Sanjay Gatti

Reviewer
Company
TCS

Name
Sharmistha Iyer

Role
SAP Program Manager

Approval Status
Approved

Approval
Company
IRL
IRL
IRL
IRL

Name
Manish Mittal
Sameer Jain
Rahul Tayal
Abhinav Patwa

Role
HOD-Site Development
HOD-Logistics
HOD-Buying
Sr. Executive

Approval Status

Direct Store Delivery Approach

Contents
1.

Executive Summary ............................................................................................................................... 4

2.

Objective ............................................................................................................................................... 4

3.

As-Is Process.......................................................................................................................................... 4

4.

To Be Process ........................................................................................................................................ 4
4.1 Procurement ....................................................................................................................................... 4
4.2 Virtual DC ............................................................................................................................................ 5
4.3 Home Delivery..................................................................................................................................... 5
4.4 CIMCSD Changes for Home Delivery................................................................................................... 6
4.5 Posting of Sales data to SAP and CRM ................................................................................................ 6
4.6 Returns ................................................................................................................................................ 6

Assumptions .......................................................................................................................................... 7

Business Benefits .................................................................................................................................. 7

To Be Discussed with IRL ....................................................................................................................... 7

Direct Store Delivery Approach

1. Executive Summary
In the current business scenario, all Punjab and Chandigarh stores/customers receive goods from Delhi
DC. Goods are procured from Vendors which deliver goods at Delhi DC. In this process, at some places
like Punjab/Chandigarh, IRL incurs a VAT loss of 2% due to interstate transfer. This also leads to
significant logistics and operational cost like inventory carrying cost etc and increased delivery time
IRL has decided to embark on Direct Store Delivery Initiative wherein certain vendors will deliver some
specific artocles to some central location in a particular city from where IRL will distribute goods to
individual stores in that city. As of now, this would be applicable for few brands.

2. Objective
IRL wants to save VAT loss and other operational costs by implementing direct store delivery
model for selective stores. Through this model, vendors will deliver goods to some central
location in a particular city from where IRL will distribute goods to individual stores in that
city. This is also improve delivery time.

3. As-Is Process
Currently all the store replenishment and home delivery for Punjab/Chandigarh stores are processed
from Delhi DC. In the process, IRL incurs a VAT loss and significant logistics charges owing to the total
distance between stores and the DC.

4. To Be Process
For certain articles of selected brands, vendors will deliver goods to some central location in a particular
city. This location will be identified as Virtual DC (VDC) with a site code. Stock will be consolidated at
VDC and replenishment of mapped stores will be done from virtual DC. Home deliveries punched at
mapped stores will be done from virtual DCs.
Procurement of these specified articles will be done from the vendor to VDC and VDC will replenish
stores. All other articles will be replenished from Delhi DC to stores as per the existing business scenario.

4.1 Procurement

Procurement of articles intended for DSD will be done based on suggestions given by Symphony.
Symphony will give suggestions and basis that POs will be created by buyers . This is applicable
4

Direct Store Delivery Approach

for store replenishment. For home deliveries punched at store, an auto STO would be created to
mapped VDC and from VDC back to back PO would be created to vendor.

Other articles will be replenished from the Delhi DC as per existing process

In case of unavailability of stock with Vendor(checked out of system), replenishment can be

done from Delhi DC. In this case, PO to vendor would have to be cancelled and STO would be
raised to Delhi DC . A screen will be provided where in user will enter the PO number which
needs to be cancelled and then STO would have to be created. There would not be any partial
PO cancellation.

In such a case, Delhi DC would supply those specific articles at Virtual DC and Virtual DC will in
turn send them to stores

4.2 Virtual DC

This would be inventory managed DC and not Bin managed i.e. bins will not be created.

There would be just few locations like live location, damaged location, return location

GRN will be done in the VDC similar to the normal DC.

During GRN of articles at virtual DC , serial number has to be maintained. User can scan bar
code, enter quantity and scan serial number (in a text field) in comma separated fashion in an
excel (Actual template would be discussed later). This excel can be uploaded to store serial
numbers in comma separated fashion in database. The fields would be as follows:

GRN
No.

GRN
Date

Vendor

PO
No.

PO
Line

Supplying
Site

Article
Code

Article
Description

Serial
No.

Quantity

Value

PID will done similar to that of a Store. There would not be any serial number enablement in
PIDs

4.3 Home Delivery

When a home delivery will be punched at stores, STO will be raised to the mapped VDC and a
back to back PO will be raised to the Vendor.

The home deliveries will be delivered from VDC for the selected articles similar to the processes
followed by normal DC.

In case of a single customer ordering 2 articles of different brands in same order(one fulfilled by
DSD model and other via normal home delivery by Delhi Dc), 2 STOs will be created for one
each for VDC and Delhi DC respectively. For VDC, a back to back PO would be created for
vendor as well. The delivery will be handled separately, one by VDC model and other by Delhi
DC.

In case home delivery is booked for articles(fulfilled by DSD) corresponding to two different

vendors then 2 separate POs should get raised(one for each vendor)

Direct Store Delivery Approach

There will be no change in the store delivery process.

Ready to Ship, Delivery In Progress and Delivered status would be required for home delivery.

DIP and Delivered status should flow to CRM for logging of ticket for demo, installation and
after sales support.

4.4 CIMCSD Changes for Home Delivery

Interface
A new interface will be created which will send DSD STO number to CIMCSD system

The source system for the new interface will be SAP and destination system will be
CIMCSD.
The XML file will have POS reference number, STO number and virtual DC code.
STO number and virtual DC code will be updated in CIMCSD system against the unique
POS reference number.
Virtual DC code will be updated against secondary store field

Master Data

A new entry will be done in the store master data for virtual DC.
A new user will be created for the virtual DC with store backdock role. The new user will
be assigned virtual DC store and the user will be able to work on all the lines assigned to
virtual DC.

4.5 Posting of Sales data to SAP and CRM

The Sales Data for these stores would flow from POS to SAP and to CRM , as usual.

4.6 Returns
In order to identify articles(shipped from Delhi DC or procured directly via vendor) for Returns- During
GRN of articles at virtual DC , serial number has to be maintained. User can scan bar code, enter
quantity and scan serial number (in a text field) in comma separated fashion in an excel ( Actual
template would be discussed later). This excel can be uploaded to store serial numbers in comma
separated fashion in database. A report can be provided which will have link to article details to GRN to
PO/STO from where user can search to which PO/STO article belongs to. This can help in identifying
source of article. Accordingly, return purchase order can be raised. The report that would be pulled to
search serial number for returns might have following format:
GRN
No.

GRN
Date

Vendor

PO
No.

PO
Line

Supplying
Site

Article
Code

Article
Description

Serial
No.

Quantity

Value

Direct Store Delivery Approach

4 Assumptions

List of articles for which DSD model will be implemented will be provided by IRL.

The supplying site for the mentioned stores would be maintained in a custom table. This detail
will be triggered to symphony through MTSSKU.

The vendor for the mentioned articles will be maintained in source list at article level as a fixed
vendor.

No RPA site at Virtual DC.

Please Note: Buffer stock should be maintained at VDC in which symphony will consider into
account for replenishment suggestions.

5 Business Benefits

Cost Saving in terms of operational cost, inventory carrying cost and operational expenses.

Reduction in delivery time.

6 To Be Discussed with IRL

GRN
No.

Finalize the format of report that would be pulled out to identify DSD articles for return
purpose. Proposed format is as follows:
GRN
Date

Vendor

PO
No.

PO
Line

Supplying
Site

Article
Code

Article
Description

Serial
No.

Quantity

Value