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SUBMITTED BY
OSWINDA GOMES
R-11-17
SYBBA
HOOPOS.COM- ONLINE TOY SHOPPING
HOOPOS.COM was founded in January 2011 with the objective to be the most preferred destination for
everything baby, kids and moms-to-be. The mission is to deliver a superior online shopping experience
and offer to the customers the largest collection of fun, developmental, everyday essential, and wellness
products from across the globe.
They have a professional team with deep understanding of the needs of babies, kids and young parents.They believe in providing a superior customer service so that their customers have an enjoyable
shopping experience.
They carry products ranging from diapers, apparel, baby essentials to traditional toys from across India,
and lots of goodies. At hoopos.com they are proud to provide a wide selection of familiar favorites, as
well as introduce exciting new brands and products all the time that you and your little one can enjoy. It
has its headquarter in Bangalore Karnataka.
Company profile
Type: Private
Headquarter: Bangalore
Product: toys
Website: hoopos.com
The online shopping means that consumers' trips to the shops are being substituted by delivery direct to
customers homes and this is having a direct impact on how retailers manage their logistics functions.
Retailers are currently experiencing a switch from traditional retailing to online sales at a rate of some
10% in the short term with most forecasts anticipating e-retailing to continue to replace conventional
channels in the future.
Toy Category of the website
Infant/Preschool
Games/Puzzles
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Dolls
Vehicles
Outdoor & Sport toys
Building Sets
Arts & Crafts
Plush
Action Figures & Accessories
Learning & Exploration
All other
How the website functions
Customer
Access the Hoops.com
Browse catalogs and search items
Get product information
Log On to Website
(IF USERD ID IS THERE)
If New User Then User Is Authenticated
(New Login ID is made by new User)
User Login
Buy the Product
Give Shipping Info
Give Pa ment Info
Get Invoice (i.e., Slip)
Get confirmed i.e. Received
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SUPPLY CHAIN
A supply chain involves activities that take place during the entire product life cycle, from dirt to dust,
as some describe it. However, a supply chain is more than that, because it also includes the movement
of information and money and the procedures that support the movement of a product or a service.
Finally, the organizations and individuals involved are considered part of the supply chain as well. When
looked at very broadly, the supply chain actually ends when the product reaches its after-use disposal
to recycling or back to Mother Earth somewhere.
Logistics
Logistics is a broad function which consists of a series of related activities. You can imagine these by
following some materials on their way through an organization.
Procurement or purchasing. The flow of materials into an organization is usually initiated by a
purchase order sent to a supplier. To prepare this a purchasing, or procurement, department finds
suitable suppliers, negotiates terms and conditions, organizes delivery, arranges insurance and payment,
and does everything needed to get materials into the organization.
Inward transport or traffic moves materials from suppliers to an organizations receiving area. For
this, the company chooses the best type of transport (road, rail, air, etc.), design a route, make sure that
all safety and legal requirements are met, ensure deliveries on time, keep costs low, and so on.
Receiving makes sure that materials delivered match an order, acknowledges receipt, unloads delivery
vehicles, inspects materials for damage, and sorts them.
Oil refinery
Pulp Company
Lumber company
Metal sheet Components
manufacture
Toy assembling
or manufacturer
Plastic
Toy packing
Warehouse
Shipping
Shipping
Paper Company Box makers,
rinters
Printing Labels
Customer
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Warehousing or stores moves materials from the receiving area into storage and makes sure that they
are available when needed. Warehousing also looks after stored materials, giving the right conditions,
treatment and packaging to keep them in good condition. To optimize storage space and labor,
hoops.com splits the warehouse into two storage regions with different storage densities. One region is
for picking customer orders and the other holds reserve stock. The picking area is laid out to facilitate
efficient picking by a person; this limits the height and depth of the storage racks, as well as the quantity
of each Stock Keeping Unit stored in the picking area. As a consequence, the storage density in the
picking area is relatively low. On the other hand, the reserve or deep-storage area has high storage
density; the purpose of the reserve area is to store larger quantities with the most efficient use of space.
Replenishment from outside suppliers will typically come in pallet loads and be first stored in reserve
storage.
Stock control sets the policies for inventory. It considers the materials to store, overall investment,
customer service, stock levels, order sizes, order timing, and so on.
Material handling is the general term for moving materials within an organization. Every time that
materials are moved around operations, it uses materials handling, whose aim is to give efficient
movements, with short journeys, using appropriate equipment, with little damage, and using specialpackaging and handling where needed.
Order picking finds and removes materials from stores. Typically, materials needed for a customer
order are located, identified, checked, removed from racks, consolidated into a single load and moved
to a departure area for loading onto delivery vehicles.
Packaging wraps materials to make sure that they are properly protected during movements so that
damage is kept to a minimum.
Outward transport takes materials from the departure area and delivers them to customers
Physical distribution a general term for theactivities that deliverfinished goods to customersRecycling, returns and waste disposal. Even when products have been delivered to customers, the
work of logistics may not be finished. Sometimes there are problems with delivered materials and they
have to be collected and brought back (perhaps because they were faulty, or too many were delivered,
or they were the wrong type). Activities that return materials back to an organization are called reverse
logistics (compared with forward logistics that made the original deliveries).
Location. Logistics activities are usually spread over many locations. For instance, stocks of finished
goods are held at the end of production, moved to nearby warehouses, sent to regional depots, put into
stores near to customers i.e. in Bangalore itself, passed on to third parties.
Reverse logistics returns materials back to an organization after they have been delivered to
customers
Forward logistics makes deliveries out tocustomersLogistics management (is the function) thatPlans, implements and controls the efficient,effective forward and reverse flow and storage of goods,
services and relatedinformation between the point of origin and the point of consumption in order to
meet customers requirements.
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Making sure the customer will pay: Depending of the payment method and prior arrangements, aninvestigation is to be made regarding the validity of the payment. This activity may be done by the
companys finance department and/or a financial institution (bank, credit card brand such as Visa).
Thus, the required payment information needs to be transferred to the checking mechanism and
sometimes to an outsider. The interfaces between the involved parties and the lines of communication
must be both effective and efficient. Any delay may cause a shipment delay, resulting in a loss of good
will or, more important, a customer.
Checking for in-stock availability: Regardless if the vendor is a manufacturer or a retailer, an inquiryneeds to be made regarding stock availability. Several scenarios are possible here, involving the
material management and production departments, as well as outside suppliers. Here again, the order
information needs to be connected to the information about in-stock availability. Furthermore, if an
item has been promised for a delivery it should be deducted automatically from the in-stock inventory.
Arranging shipments: If the product is available, it can be shipped to the customer. Products can bedigital or physical. If the item is physical and it is readily available, packaging and shipment
arrangements need to be made. Both the shipping (packaging) department and internal shippers or
outside transporters may be involved.
Purchasing and warehousing: Here the seller is a retailer so purchasing from manufacturers is needed.Purchased items can be placed in warehouses close by in Bangalore. Not only is an effective
information flow is needed, but also appropriate receiving and quality assurance of incoming materials
and products must be done. Once purchasing and production is completed, shipments are arranged.
Demand forecast: In the case of non-customized items, a demand forecast must be done in order todetermine appropriate inventories at various points of the supply chain. Such a forecast is difficult in
the fast growing field. In the case of customized products, it is necessary to forecast the demand for
the components and materials required for fulfilling customized orders. Demand forecast must be
frequently done with business partners, along the supply chain.
Contacts with customers: The salespeople need to keep in constant touch with customers. Startingwith notification of orders received and ending with notification of a shipment or changes in delivery
dates is to be done. These contacts are usually done via e-mail, frequently generated automatically.
Order fulfilment involves both flow of goods (physical or digital) and a substantial flow of information
among several units inside and outside the vendor. Therefore, the process needs to be connected not
only to existing internal information systems, but also to the information systems of the suppliers,
customers and other business partners.
Depending on the inventory availability and customer preferences, hoopos.com then quotes a promise-to-ship date to the customer. The promise-to- ship date is the date by which the company promises to
ship the order from the warehouse. After the company assigns the order, the order enters the picking
queue at the warehouse.
The order might wait six to eighteen hours before the items in the order are picked and assembled into
a shipment that is then given to a third party carrier to deliver the package(s) to the customer location.
The company utilizes its entire inventory, regardless of location, to serve demand. Given that they stock
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certain units of inventory in the system, they allocate inventory to warehouses by minimizing outbound
transportation costs from the warehouses to customers.
When all items in an order are available at the warehouse, the order may wait 8 to 16 hours until the
order is released to be picked and sent for shipping. If one or more of the items in the order is not
available, then the rest of the order is reserved and waits until the missing items arrive. By re-evaluating
the real-time decision, the company can also afford more decision making time. A.hoopos.com offers
free shipping within India on all products above Rs. 349. For orders below Rs. 349 hoopos.com will
charge Rs. 50 for shipping. They process all deliveries through reputed couriers like Blue Dart and DTDC.
If there is no courier service available in your area, they will ship your items through government
registered book-post or speed-post. There are no extra taxes, hidden costs or additional shipping
charges. The price mentioned on the website is the final price. What you see is what you pay.
ESSENTIAL ROLE OF LOGISTICS IN MEETING DEMAND
Push and pull operations
Hoopos.com offers both pull and push operations for its customers. The concept of pull operations
which begin with an order, frequently a customized one and hoopos.com offers customized toys also.
This is in contrast with traditional retailing that begins with a production to inventory, which is then sold
to customers. In the pull case it is more difficult to forecast demand due to lack of experience. Anotherfactor is that in a B2C pull model, the goods need be delivered to the customers door while in brick-
and-mortar retailing, the customers come to stores. Hoopos.com also offers push operations to its
customers. In Hoops.com, customers cannot control how their demand will be served. Rather, thecompany will decide which warehouse or drop-shipper serves what demand. As a consequence, the
company utilizes all of its warehouses or fulfillment centers to serve the customer demand. This
centralized demand allocation poses new challenges and opportunities to minimize operating costs.
Customers
Supply of
product
Demand for
product
Operations Passed to
Create
Organize
Move to
Other outputsInputs needed by
operations
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Vendors
Have vendors from different parts of India but major vendors are from Bangalore, Gujarat and Delhi. The
Vendors first send their catalogs to the company where they have to describe their product and various
specifications about the product. After which a representative visits the vendor to check on all the
details and after thorough verification and quality standard tests, orders are placed with the vendor for
a specified quantity. After which the orders are placed as per the demand and minimum inventory
requirements and products of certain brands and types are always ordered in a specified quantity with
regularity.
Forecasting
The managers must forecast the number of orders received each month. The data of the last year is
given below
Months Orders Received (in thousands)
January 250
February 220
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March 180
April 200
May 10
June 20
July 40
August 50
September 80
October 350
November 50
December 300
Using the 3 month weighted moving average forecast the number of orders received from the month of
April to December. Use weights of 0.3, 0.2 and 0.1.(numbers are assumed)
Using the 3 month simple moving average forecast the number of orders received from the month of
April to December
Solution
Weighted moving average
F April=180(0.3) +220(0.2) +250(0.1) = 123
F may =200(0.3) +180(0.2) +220(0.1) =118
F June= 10(0.3) +200(0.2) +180(0.1) = 61
F July= 20(0.3) +10(0.2) +200(0.1) =82
F august = 40(0.3) +20(0.2) +10(0.1) = 17
F September= 50(0.3) +40(0.2) +20(0.1) =25
F October=80(0.3) +50(0.2) +40(0.1) =38
F November=350(0.3) +80(0.2) +50(0.1) =126
F December=50(0.3) +350(0.2) +80(0.1) =93
Simple moving average
F April=180+220+250/3= 483.33=484
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F may =200+180+220/3=453.33=454
F June=10+200+180/3=270
F July= 20+10+200/3=223.33=224
F august = 40+20+10/3=63.33=64
F September= 50+40+20/3=96.97=97
F October=80+50+40/3=143.33=144
F November=350+80+50/3=446.67=447
F December=50+350+80/3=426.67=427