Project
Report on Summer Training
On
To Study The Working Procedure & Marketing Strategies of
Aadhar Retail Ltd
Submitted to Punjab Technical University
In the partial fulfillment of the
requirements for the award
of
Degree
of
Masters of Business Administration(MBA)
2009-2011
Submitted by:
Gagandeep Singh
University Registration No.95182239101
SHREE ATAM VALLABH JAIN COLLEGE
LUDHIANA
DECLARATION
I GAGAN DEEP SINGH declare that the project report entitled “STANDARD OPERATIONAL PROCEDURE AND ITS ADHERENCE RELATED TO AADHAAR RETAIL MARKETING”, is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me alone, at SHREE ATAM VALLABH JAIN COLLEGE, for the partial fulfillment of the course MBA, and the report has not been submitted to any other educational institutions for any other purpose.
GAGAN DEEP SINGH
PREFACE
As a part of MBA degree, it is required for every student to undergo summer training in an industrial or commercial organisation to get a practical exposure of actual situation existing in the industry.
I have undertaken my training in AADHAAR RETAILING LTD, LUDHIANA. The duration of my training was eight weeks.
When I joined AADHAAR RETAIL LTD. , I believed that ‘’RETAIL IS IN EVERY BIT OF YOUR LIFE” I believe that now I will answer my entire enigma and asked for queries .During this humble month old stay in the organization , I have made a very modest attempt in understanding and presenting my ideas as well as enriching experience through this report .
ACKNOWLEDGEMENT
No endeavour can be successful without the active cooperation of the people concerned with it, which was fourth coming in full during this study. It is extremely difficult to find words which can do justice to this sort of cooperation; I got in the planning & execution of this study.
I am deeply indebted to Mr. Anchal Bindal(Sr. Manager HRA) who allowed me to take training in this esteemed branch of Aadhaar Retailing ltd. and without whose cooperation my training would not been possible.
I feel lucky to complete my project under the able and competent guidance of Mr. Ajay
Dwivedi. (State Head Punjab) and Mr. Muneesh Kaushal (Asstt. Marketing Manager) and take the opportunity to express my sincere thanks to Mr Sumant (Sr.Operation Manager) and Mr. Naresh Dutt(Sr. Distribution Manager) and Mr.V.K. Pandey (Store Manager) for valuable guidance in planning & execution of
this study.
I am extremely grateful to Mr.Ashok Biyani(DIRECTOR) and my research guide Mr.
RAJNISH JAIN (FACULTY OF MBA) and other faculty members for their whole
hearted co-operation.
I extend my deepest gratitude to all those persons who supported me all through my project. My interaction with all these people has left a long lasting impression in my mind that will influence my project and my behaviour for all times to come
.
Once again I extend my whole hearted thanks to all the supporters and advisors for their help.
Gagandeep Singh
TABLE OF CONTENTS
Sr. No
Description
Page No.
1 EXECUTIVE SUMMARY 6
2 INTRODUCTION TO RETAIL MARKETING 7-23
3
COMPANY PROFILE S HISTORY
24-354 INTRODUCTION TO - S. O. P. 36-55
5 SWOT ON AADHAR RETAIL LTD 56-65
6 OBJECTIVE OF STUDY 66
7 RESEARCH METHODOLOGY 67-71
8 DATA ANALYSIS AND INTERPRETATION 72-81
9 CONCLUSION 82
10 RECOMMENDATIONS AND SUGGESTIONS 83
11 BIBLIOGRAPHY 84
EXECUTIVE SUMMARY
In today economy, one needs money to make money. Marketing is the life
blood of business and there must be continuous flow of funds in and out of
business enterprise. Money makes the wheel of business run smoothly.
Sound plan and efficient production system and excellent marketing network
are all hampered in the absence of adequate funds. In modern economy, the
rate of finance has increased due to large scale industrial production. It has
resulted in increasing the demand of funds in an organization.
Retail Marketing is a growing sector in all around the world.Retailing
includes all the activities involved in selling goods or services directly to
final consumers for personal, non business use. Basically retail marketing is
globalize in urban areas but now company’s are also interested in rural areas
and moving towards it .
Retailing is emerging as a sunrise industry in India and is presently the
largest employer after agriculture. In the year 2004, the size of Indian
organized retail industry was Rs 28,000 Crore, which was only 3% of the
total retailing market. Retailing in its present form started in the latter half of
20
thCentury in USA and Europe and today constitutes 20% of US GDP. It is
the 3
rdlargest employer segment in USA. Organized retailing in India is
projected to grow at the rate of 25%-30% p.a. and is estimated to reach an
astounding Rs 1,00,000 Crore by 2010. In India it has been found out that
the top 6 cities contribute for 66% of total organized retailing. With the
metros already been exploited, the focus has now been shifted towards the
tier-II cities**. The 'retail boom', 85% of which has so far been concentrated
in the metros is beginning to percolate down to these smaller cities and
towns. The contribution of these tier-II cities to total organized retailing
sales is expected to grow to 20-25%.
Introduction to
Retail Marketing
Retail forms the core business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Group’s retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural locations across the country. The group currently operates around 1,000 stores spread over 16 million square feet of retail space. Present in the value and lifestyle segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-section of Indian consumers. Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most popular retail chains like Pantaloons - a chain of fashion destinations, Big
Bazaar - a uniquely Indian hypermarket chain, Food Bazaar - a supermarket chain that
blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central - a chain of seamless destination malls. Some of its other formats include Ethnicity - India's first concept store, which recreates the experience of a traditional ethnic market in a modern retail format, Brand Factory,
Planet Sports, aLL, Top 10 and Star and Sitara. The group also operates India’s most
popular online shopping portal www.futurebazaar.com.
Retailing of products and services related to home building and home improvement is led through the group’s formats, Home Town, a large-format home solutions store, along with specialized formats for home furniture and home furnishing through, Collection i and Furniture Bazaar and consumer electronics through eZone and Electronics
Bazaar.
The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65 locations in retail showroom in India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution provider for the consumer.
RETAIL MARKETING
The term marketing refers to an art of selling product by satisfying consumer needs. Marketing deals with identifying and meeting human and social needs. Retail marketing takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. Retail marketing is also related to getting, keeping, and growing customers through creating, delivering,and communicating superior customer value.
The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objective Elements of the marketing mix are often referred to as 'the
1-PRODUCT
A product is a bundle of benefits which are being offered to consumer. Thus a good product makes its marketing by itself because it gives benefits to the customer.
2-PRICE
Pricing is basically setting a specific price for a product or service offered. In a simplistic way, Kotler and Armstrong (2004) refer to the concept of price as the amount of money that customers have to pay to obtain the product.
3-PLACE-DISTRIBUTION
The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer.
In fact, instead of "place" it would be better to use the word "distribution" but the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix!
4-PROMOTION
Promotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them
Promotion has four distinct elements - advertising, public relations, word of mouth and
point of sale.
Significance of Retail Markets
The retail markets are estimated to be growing fastly in the middle class area. The potentiality of rural markets is said to be like a 'woken up sleeping giant'. These facts are substantiated in a study of market growth conducted by various researches. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has taken shape. Sometimes, rural marketing is confused with agricultural marketing – the later denotes
marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers.
A number of factors have been recognized as responsible for the rural market boom to come into existence:
1. Increase in population and hence increase in demand.
2. A marked increase in the rural income due to agrarian prosperity. 3. Standard of living is also increasing in rural areas.
4. Large inflow of investment for rural development programmes from government and other sources.
5. Increased contact of rural people with their urban counterparts due to development of transport and wide communication network.
6. Increase in literacy and educational level and resultant inclination to sophisticated lives by the rural folks.
7. Inflow of foreign remittances and foreign made goods into rural areas.
8. Change in the land tenure systems causing a structural change in the ownership patterns and consequent changes in the buying behaviour.
9. Rural markets are laggards in picking up new products. This will help the companies to phase their marketing efforts. This will also help to sell inventories of products out dated in urban markets.
Rural market has following arrived and the following facts substantiate this.
What makes Rural Markets Attractive?
* 742 million people
* Estimated annual size of the rural market - FMCG Rs. 65,000 Crores
- Durables Rs. 5,000 Crores
- Agri-inputs (incl. tractors) Rs. 45,000 Crores - 2 / 4 wheelers Rs. 8,000 Crores
* In 2001-02, LIC sold 55 % of its policies in rural India.
* Of two million BSNL mobile connections, 50% in small towns/villages.
* Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)
* 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs. 977 billion resulting in tremendous liquidity. * Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site
* 42 million rural HHs availing banking services in comparison to 27 million urban HHs. * Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in urban
Opportunities: In Retail Marketing
Infrastructure is improving rapidly.
- In 50 years only 40% villages connected by road, in next 10 years another 30%. - More than 90 % villages electrified, though only 44% rural homes have electric connections.
- Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD.
* Social Indicators have improved a lot between 1981 and 2001
- Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%)
- Percentage of BPL families declined from 46% to 27% - Rural Literacy level improved from 36% to 59%
* Low penetration rates in rural so there are many marketing opportunities. Durables Urban Rural Total (% of rural HH)
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0
FMCGs Urban Rural Total (% of rural HH) Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6
* Marketers can make effective use of the large available infrastructure - Post offices - 1, 38,000
- Haats (periodic markets) - 42,000 - Melas (exhibitions) - 25,000 - Mandis (agri markets) - 7,000 - Public distribution shops - 3, 80,000 - Bank branches - 32,000
* Proliferation of large format rural retail stores which have been successful also. - DSCL Haryali stores
- M & M Shubh Labh stores - TATA/Rallis Kisan Kendras - Escorts rural stores
- Warnabazaar, Maharashtra (annual sale Rs. 40 crores)
EMERGING TRENDS IN MARKETS
ONLINE RURAL RETAIL MARKET (INTERNET, NICNET):
Rural people can use the two-way communication through on – line service for crop information, purchases of Agri-inputs, consumer durable and sale of rural produce online at reasonable price. Farm information online marketing easily accessible in rural areas because of spread of telecommunication facilities all over India.
INFORMATION THROUGH LOCAL AGRICULTURE INPUT DEALERS
Most of the dealers have direct touch with the local farmers; these farmers need awareness about pests, decease, fertilizers, seeds, technology and recent
developments. For this information, farmers mostly depend on local dealers. For development of rural farmers the government may consider effective channel and keep information at dealers, for farmer education hang notice board and also train the dealer recent changes and developments in agriculture.
National Chain Stores: large number of stores set up in different rural areas throughout the country by the same organization for marketing its products. Thus national chain stores can serve large number of customers in rural area.
COST BENEFIT ANALYSIS
Cost benefit can be achieved through development of information technology at the doorsteps of villagers; most of the rural farmers need price information of agri-produce and inputs. If the information is available farmers can take quick decision where to sell their produce, if the price matches with local market farmer no need to
go near by the city and waste of money & time it means farmers can enrich their financial strength.
NEED BASED PRODUCTION
Supply plays major role in price of the rural produce, most of the farmers grow crops in particular seasons not through out the year, it causes oversupply in the market and drastic price cut in the agricultural produce. Now the information technology has been improving if the rural people enable to access the rural communication, farmers awareness can be created about crops and forecasting of future demand, market taste. Farmers can equates their produce to demand and supply, they can create farmers driven market rather than supply driven market. If the need based production system developed not only prices but also storage cost can be saved. It is possible now a days the concept of global village.
MARKET DRIVEN EXTENSION
Agricultural extension is continuously going through renewal process where the focus includes a whole range of dimensions varying from institutional arrangements,
privatization, decentralization, partnership, efficiency and participation. The most important change that influences the extension system is market forces. There is a need for the present extension system to think of the market driven approach, which would cater the demands of farmers.
PROCESSING INDUSTRY
India is the second largest producer of fruits and vegetables in the world with an annual production of more than 110 million tones of fruit and vegetable only 1.3 percent of the output is processed by the organized sector commercially, the reason higher consumption in fresh form. However, as the packaging, transportation and processing capacities increase, the market for processed fruits and vegetables is projected to grow at the rate of about 20 % per annum. 100 % export oriented units (EOU) and Joint venture units required improving the processing industry.
APANAMANDI / KISAN MANDI / RYTHUBAZAAR
There is a need to promote direct agricultural marketing model through retail outlets of farmer's co-operatives in urban areas. The direct link between producers and consumers would work in two ways: one, by enabling farmers to take advantage of the high price and secondly, by putting downward pressure on the retail prices.
RURAL AGRI- EXPORT
Rural produce, raw fruits and vegetable, processing goods, have the potential market in Asian, Europe and western countries. Particularly soudhy countries have
commendable potential for Indian rural produce.
Classification of Customers
India 1 India 2 India 3
Consuming Class Serving Class Struggling class
•
Constitutes only 14 % of the country’s population•
Most of these customers have a substantial disposable income and they form part of usually called as the uppermiddle and the lower middle class
• Includes people like drivers, house hold helpers, office peons, liftmen, washer man etc.
•
These people make life easier and more comfortable for the consuming class or India1.
•
Research indicates that for every India one at least three India Twos are there, making up approx.55 % of the population
but due to low income they have a very little disposable income to spend on buying aspirational goods & services .
• It lives hand-to-mouth existence, so can not afford to even aspire for good living.
• Unfortunately this segment will continue to be on the peripheries of the consumption cycle in India, in years to come.
Source: Future Group Research, Published in the Book “It Happened in India” by Kishore Biyani, 2007 issue.
Emerging Trends in Modern Retail Formats :
It is difficult to fit a successful international format directly and expect a similar performance in India. The lessons from multinationals expanding to new geographies also point to this. For example, Wal-Mart is highly successful in USA but the story is different in Asian countries like China. Therefore, it is important for a retailer to look at local conditions and insights into the local buying behavior before shaping the format choice. Considering the diversity in terms of taste and preferences prevailing in India, the retailers may go for experimentation to identify the winning format suited to different geographies and segments. For example, the taste in south is different from that in north and this brings challenges to the retailers. Therefore, most of grocery retailers are region centric at this point in time. The available research findings on retail indicate the following trends in Modern Retail formats:
1)
Trial & Error: Now a number of retailers are in a mode ofexperimentation and trying several formats which are essentially the representation of retailing concepts to fit into the consumer mind space. Apart from geography even rural and urban divide poses different kind of challenge to the retailer. Pantaloon Retail India is experimenting with several retail formats to cater to a wide segment of consumers in the market. Some of the new formats are Fashion Station (popular fashion), Blue Sky (fashion accessories), aLL (fashion apparel for plus-size individuals), Collection i (home furnishings), Depot (books & music) and E-Zone (Consumer electronics).
2)
Emergence of Wholesale Clubs: Since retailers are trying to segment themarket with the help of formats, they developed another new format in the form of Wholesale Club to sell a segment of consumers, who purchase on bulk and look out for substantial discounts and offers. The new format is going to be a kind of wholesale club which is likely to be located close to Food Bazaar. Consumers who are interested to purchase on bulk can take benefit from this format. Similarly the Land mark group also operates multiple formats such as hypermarket (Max), departmental store (Lifestyle), Shoe mart and Funcity8 etc. Such experimentation and identification of an appropriate format for the local conditions would separate winners from losers in India, possibly implying
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multiple formats could be the reality in the long run. Pantaloon Retail India Ltd is a live example of that in Indian scenario.
3)
Increasing Acceptance of Rural Markets: Mall-mania is phenomenal inIndia and is spreading fast and entering even the second tier cities in India. Real estate developers are jumping very fast to take this further from Metro cities to smaller cities and corporate houses like ITC and Sriram group are making steady progress to make this phenomena feasible in rural markets as well. There is no denying that the top notch cities like Mumbai, Delhi, Bangalore, Hyderabad, Kolkata, Chennai and Pune are leading the way but the second tier cities like Ludhiana, Chandigarh, Nagpur and Surat are also catching the eye of all retailers. Retail developers are in such a mood that they may over ride the requirement in a specific city.
4)
Govt. is also promoting the Development of Modern Retail Formats:Large format malls are increasingly getting prominence with adequate retail space allocated to leisure and entertainment. Some states like Punjab have lifted entertainment tax on multiplexes till 2009. This boosted the confidence of the mall developers to accommodate entertainment players like PVR, Waves, Adlab and Fun Republic in large malls.
5)
Efficient Buying: Increasing Importance of Supermarkets & Discount Stores: Such a format provides the greatest selection of any general merchandizeand very often serves as the anchor store in shopping mall or shopping centre. In India, the number of department stores is less as compared to other retail formats such as supermarkets and discount stores. Shoppers' Stop is the first one to open a department store in the early 1990s and currently operates 19 stores in 10 different cities in India .The store strongly focuses on lifestyle retailing and mainly divides into five departments such as apparel, accessories, home décor, gift ideas and other services. Shopper’s Stop is getting stronger and stronger year
after year. It attracts more than 12 million shoppers every year with a conversion rate of 38 per cent. In the end of FY2000 this retailer had 5 stores and is in the process of reaching 39 stores with retail space of 2,502,747 sq ft by FY08.
Another operator Lifestyle India began operations in 1998 with its first store in Chennai in 1999 and in March 2006 it opened one of the largest department stores in the same city. The store spreads over 75,000 sq. ft and store provides customers a great shopping experience with three floors of apparel, footwear, products for children, household furniture and decor, health and beauty products.
6)
Hypermarkets: The Biggest Crowd Puller: Hypermarkets have emergedas the biggest crowd pullers due to the fact that regular repeat purchases are a norm at such outlets. Hypermarkets not only offer consumers the most extensive merchandise mix, product and brand choices under one roof, but also create superior value for money advantages of hypermarket shopping. With product categories on offer ranging from fresh produce and FMCG products to electronics, value apparels, house ware, do it yourself (DIY) and outdoor products, the hypermarkets are emerging as one of the popular formats in India.. Number of players operating hypermarket format are increasing day by day. One of the leading players in this format is Pantaloon Retail India Limited which operates 32 Big Bazaars in twenty cities. In early 2006, the K. Raheja Corp (C.L. Raheja Group) has introduced its value retail concept hyper city which is the country’s largest hypermarket at 118000 sq ft. hyper city Retail plans to open 55 hypermarkets by 2015. As the market is expanding and consumers are in a mood to accept changes, hypermarkets are getting overwhelming response from consumer. Currently there are about 40 odd hypermarkets in India but this format holds a great potential for growth.
7)
Customers still rely on traditional concepts: A super market normallysells grocery, fresh, cut vegetables, fruits, frozen foods, toiletries, cosmetics, small utensils, cutlery, stationery and Gift items. In India Food World, Food Bazaar, Nilgiri (30 plus stores), and Adani are the leading super market operators .One of the biggest super market operators in the western India is Adani
21
Retail Limited which operates Adani super market plans to continue its journey to reach total 19 cities with the store strength of 60 plus in the state of Gujarat. ARL also plans to expand its operation in the neighboring states of Rajasthan, Madhya Pradesh, Maharashtra and Chhattisgarh.
Subhiksha is one of the leading super market operators, who largely operates in the
southern part of India is expanding to western India. One more retailer Reliance
Retail is on the move and this retailer opened its Reliance Fresh-a super market chain with 11 stores in Hyderabad in November 2006 and is planning to enter 70 more cities within 2 years.
8)
Emergence of Private-Label Brands: The private labels are offeringflexibility to both the retailer and the consumer on price front. The objective of the store is to offer variety at affordable price in each category. Food Bazaar have made the transition from just a grocery retailer to developing emotional bonding with shoppers by providing some value added services to the shoppers. Some of these initiatives include : ( Jo Dikhta Hai wo hi Bikta Hai )
Live chakki: which allows customers to buy fresh wheat and have it grinded there
at the store
Fresh Juice counter: This provides customer to have fresh juices. Live dairy: This provides customers with fresh milk and milk products.
Live kitchen: Customers have the option of buying vegetables, getting them chopped, cooked fully or partly. Soups, salads and sandwiches are also available at live kitchen.
9)
Ease of Shopping & Customized Services: Order of the Day: To activate it a new format has emerged in the name of Convenience Store. AConvenience store offers locational advantage to the shoppers and provides ease of shopping and customized service to the shoppers. It charges average to above average prices, depending on the product category and carries a moderate number of stock keeping units (SKUs). Normally it remains open for long hours and shoppers use it for buying fill-in merchandize and emergency purchases. In India,
22
Convenience stores occupied 23 thousand sq. meter of retail space with sales of about Rs 1347 million in 2005 and are expected occupy 85 thousand square meter of selling space by 2010 .
10)
Magnetic Effect: Discounters not Shopkeepers: Wal-Mart, the largestretailer in the world is a discounter. Practically the discounters offer several advantages such as lower price, wider assortment and quality assurance. The discounters like Wal-Mart and Aldi were able to quickly build scale and pass on the benefits to the consumer. However, in the long run success depends on the operational efficiency and consistent value delivery to the consumer. The same retailer Wal-Mart struggles in Asian countries like China but extremely successful in USA. It is believed that the average Indian consumer is highly price-sensitive and looks for savings in term of money in their grocery purchase. So price-value equation is a critical component in most of the grocery purchases.
11)
Category Killer: A New Concept imported from U.S.: The categorykiller concept originated in the U.S. due to abundance of cheap land and the dominant car culture. Category Killer is a kind of discount specialty store that offers less variety but deep assortment of merchandise. By offering a deep assortment in a category at comparative low prices, category specialist can be able to “kill’ that specific category of merchandize for other retailers. Generally such kind of retailers uses a self service approach. They use their buying power to negotiate low prices, excellent terms and assured supply when items are scarce. In India this kind of retail stores are not prevalent at this point of time. But there is scope for such kind of format. In India, Mega-Mart is one sort of category killer which sells apparel products.
12)
Dollar Stores: Dollar stores have their roots in America's homeyfive-and- dimes, the general stores that offered a range of products at low prices. But modern dollar-store retailers are having more sophisticated operations; leveraging their growing buying power to strike special deals with vendors and continuously striving for unique advantage of both convenience and price. Some chains sell all
their goods at $1 or less. Others offer selected items at higher prices. Most sell a combination of paper products, health and beauty supplies, cleaning products, paper and stationery, household goods, toys, food and sometimes clothing. Both private-label and brand-name goods fill the shelves. They are looking for employing technology to manage large distribution networks. Store 99 is the example of it in Indian Scenario.
13)
Retail Development in Rural India: A Market with Silver lining:Chennai based market research firm Francis Kanoi estimated the size of the rural market to be INR 1, 08,000 crore annually. During the survey in 2002 the firm took into account four categories - FMCG, durables, agri-inputs, and two- and four-wheelers for their estimation. Rural incomes are growing steadily as well. NCAER data shows while the number of middle-class households (with annual income between Rs 45,000 and Rs 2.15 lakh) is at 16.4 million in urban India, the figure stands at 15.6 million18 in the rural areas, data from. Largely this rural market is untapped and there is huge opportunity for retailers.
ecent Developments in Rural Retailing: Therefore, in recent times rural retailing is
witnessing explorations by both corporate houses and entrepreneurs – ITC's Choupal
Sagar, HLL's project Shakthi and Mahamaza are some of the models being tried out. At
this juncture there is no conclusive evidence of winning rural retail formats available. However, corporate forays into rural retail are expected to bring more experimentation and innovation in term of retail format. The Godrej Adhaar, the rural retail initiative of Godrej Agrovet Ltd operates a chain of 18 stores providing a host of services to farmers and their families and is planning to set up at least 1,000 stores19 across rural India in the next five years. Apart from Godrej Adhar and Choupal Sagar other formats operating successfully in the rural area are, M & M Shubh Labh stores, Escorts rural stores, Tata Kisan Sansar, and Warnabazaar, Maharashtra (annual sale Rs 40 crore).
DSCL Haryali Kisan Bazaar
Hariyali stores keep wide range of product assortments such as fertilizers, pesticides, farm implements, seeds, animal feed and irrigation equipment among other agriculture related products. They also have officers who offer free advices to farmers regarding best
24
agriculture practices. Offering insurance and financial services to farmers is part of the business. So far, 22 "Hariyali" Stores have been operational in different states across North India. Farmer response has been extremely encouraging. A centre is attracting 150 - 200 farmers a day. Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national footprint covering all the major agricultural markets of the country.
Mahindra & Mahindra Shubh Labh
This is the rural initiative taken by Mahindra & Mahindra group to provide complete package of products and services related to firm productivity. One of the basic objectives is to establish market linkage and optimize farm produce supply chain. There are about franchised Shub Labh store established in ten states in India.
14: e-Retailing: The importance of internet retailing is growing all over the world. Some
internet retailers such as e Bay and rediff.com are providing a platform to vendors to sell their products online and they do not take the responsibility of delivering the product to buyer. They provide virtual shopping space to the vendors. On the other hand online retailers like amazon.com and walmart.com have to maintain their warehouse to stock products and take the responsibility of delivering products to the buyer. So, most of the brick and mortar stores are entering into online retailing as they have physical infrastructure and they can use that to capture additional consumer wallet. All the big retailers like Target, Sears and Kmart are operating online shop and some manufactures also operate online.
For example Apple Inc. operates through apple.com and Dell Inc. sells its products online Through dell.com.
In India internet retailing is growing by 29% CAGR and Euro-monitor report estimates that the a CAGR 48 per cent and in value term it going to touch INR 27 billion by 2010 from INR 4 billion in 2005. The report also predicts that the contribution of internet retailing to non-store retailing to is likely to be 46 per cent by 2010.
C
OMPANY PROFILE
Godrej Aadhar
Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in various industries that include appliances, precision equipment, machine tools, furniture, healthcare, interior solutions, office equipment, food-processing, security, materials handling and industrial storage solutions, construction and information technology. Its products include security Systems and Safes, Typewriters and Word processors, Rocket Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents, Car perfumes, Chicken and Agri-products, Material Handling Equipments Like FORKLIFT Trucks, Stackers, Tyre handlers, Sweeping machines, access equipments etc. The Group is headed by Mr. Adi Godrej & Mr. Jamshyd Godrej.
Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's manufacturing base, but increasingly the group have moved significant production facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli, occupying 3500 acres (14 sq km) of land on both sides of the Vikhroli section of the LBS marg. That makes the Godrej group the biggest private land owner in Mumbai by far[citation needed]. Such vast land can, in theory, be used to create at least 1500 acres of residential floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion .
26
Thus, the Godrej group is sitting on an invisible cashpile that is envy of other Indian conglomerates.
Aadhar Retailing
Agri-services to direct sourcing from farmers, Aadhar Retailing is now getting into the business of output management with farmers across the country. With the Future Group owing a 70 per cent stake in Godrej Aadhar, the newly formed company, Aadhar, would now serve as a procurement hub for the Future Group’s retail formats such as Food Bazaar and KB’s Fair Price and even become supplier to other retailers across the country.
Mr Arvind Chaudhary, Chief Executive Officer, Aadhar Retailing, told Business Line, “We have now started buying the farmers’ produce and getting into the business of output management. With the intention of selling the farmers’ produce to other retailers, we would be adding one crop after another and help them in managing their produce,” stated Mr Chaudhary.
Reaching out to 50,000 farmers every month, the company has already employed 300 people to directly access the produce of farmers across 2,000-odd villages in the country. The States where farmers are being approached include Punjab, Haryana, Maharashtra and Gujarat.
With the Future Group’s cash-and-carry format on the backburner, sourcing from farmers and helping them sell their produce to other retailers is being seen as an extension of the same format by analysts.
Not wanting to be compared with ITC’s e-Choupal, Aadhar Retailing believes it would operate in the business of providing solutions for farmers. “We would operate on a different model from e-Choupal as we would be advising farmers on what to produce and giving services such as soil testing and weather prediction facilities. The purpose is to become a one-stop-shop in the rural areas,” says Mr Chaudhary.
Fresh inputs
Meanwhile, the existing 66 Godrej Aadhar outlets would also be stocking the Future Group’s private labels and financial products to extend its current portfolio. New brands such as Koryo (for consumer durables) and food brands such as Tasty Treat and Fresh ’N Pure would be making an appearance at the Aadhar outlets.
Besides, with the Future Group having forged strategic alliances with players such as GlaxoSmithKline to develop the Gopika brand of ghee, its outlets would also see the brand making an appearance at Aadhar outlets. Financial products, such as insurance-based products of Future Generalli, would also get sold at the outlets.
Besides, there is also a possibility of the Future Card (the Future Group’s loyalty cum credit card) being introduced.
Corporate details
Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd. is headed by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion in financial year 06/07. Godrej Interio is the flagship company of the group.
Services
Godrej HiCare (Pest Management Services) Godrej Global Solutions (ITES)
Godrej Properties
Achievement
In 1897, Godrej Introduced the first lock with lever technology in India.
In 1902, Godrej made the first Indian safe.
In 1920, Godrej made soap using vegetable oil, which was a huge hit with the vegetarian community in India
In 1955, Godrej produced India's first indigenous typewriter
In 1989, Godrej became the first company to introduce PUF ( Polyurethane Foam)
Introduced India's first and only 100% CFC, HCFC, HFC free refrigerators
Godrej Agrovet
Godrej Agrovet (GAVL) is a diversified agribusiness company with interests in animal feed, oil palm plantations, agrochemicals and poultry.It is headquartered at Vikhroli, Mumbai India. The business was set up in 1971. GAVL today has 45 manufacturing facilities across India, a network of over 10,000 rural distributors, dealers & agents and over 1900 employees committed to improving the lives of Indian farmers. The company has a presence in 21 states.Under the guidance of Chairman, noted
industrialist Nadir Godrej and its Cheif Executive Officer Balram Singh Yadav , GAVL today occupies the position of India's largest animal feed company, producing over 750,000 tons of nutritionally balanced feed for diary cattle, poultry & aquaculture every year.
Its oil palm plantation business is the market leader in India, with over 35,000 hectares of smallholder cultivation across Andhra Pradesh, Karnataka, TamilNadu, Orissa,
Goa, Gujarat & Mizoram.
With the intend of radically improving farmer economics, the agrochemicals business focuses on innovative and environmentally sensitive products.It has dominant market share in plant growth promoters & soil conditioners.
GAVL has introduced fresh, chilled chicken to Indian consumer over the past decade, and now has a 20% market share in processed poultry. Its Real good chicken brand is the best known fresh poultry product in India, with a consumer loyalty about 80%.
The Rs 900 crore Godrej Agrovet Ltd, a unit of the $1 billion Godrej Industries Ltd, will open 1,000 'hub-and- spoke' centres in rural and semi-urban areas across the country in the next five years.
These centres will also provide technical services like farm management, soil micro-nutrient analyses to farmers. The hub would cover about 10,000 sq ft and spoke 3,000 sq ft, each costing about Rs 75 lakh and Rs 30 lakh respectively. These outlets will sell agro-products like seeds, pesticides, fertilisers and grocery,
apparel, footwear, home appliances, furniture and kitchen appliances. It will also house banks, insurance offices, pharmacies, post offices and petrol pumps.
R S Vijan, executive vice-president, Godrej Agrovet, said: "We have decided to expand in rural and semi-urban markets. We will open 100-120 stores in the country in this financial year and these centres would be funded and managed by the company itself."
Godrej Agrovet posted a turnover of Rs 900 crore in 2005-06 and is expecting revenues of Rs 3,500-4,000 crore from these stores in the next five years.
At present, it has 24 Aadhaar centres in Maharashtra, Punjab, West Bengal, Orissa and Tamil Nadu. It has earmarked Rs 750 crore to train technical and marketing staff.
Godrej Agrovet is a key player in the farm segment with a large presence in cattle and poultry feed. It covers the whole spectrum of poultry business -- from breeding and hatching broilers to the marketing of its branded chicken. The company also has foothold in animal feeds, agricultural inputs and palm oil, and retail presence in urban areas through Nature's Basket. The animal feed segment constitutes about 75% of the company's revenues; almost 10% comes from poultry and the remaining from the rest of the businesses.
Recently, the firm signed a deal with Apollo Pharmacy, part of the Apollo Hospitals group and the country's largest retail pharmacy chain, to give medical support to the farming community.Earlier in January, in a bid to strengthen its hold on the farmer, Godrej Aadhaar had launched two new formats. The large format stores have been opened at Mancher and Alephata on the Pune-Nashik
highway in Maharashtra, taking the Aadhaar tally to 18 nationally.
To increase its rural reach, Godrej Agrovet, which set up Aadhaar a year ago, is now moving away from being a standalone outlet to hub and spoke model.
Company history
PROPOSAL – Educational Courses at AADHAAR
About GAVL: Godrej Agrovet Ltd (GAVL) is part of the GodrejGroup of Companies, which is a household brand in India with diversified business interests. GAVL is Rs. 1000 Cr company closely associated to rural India through various aspects of Agri Business like Animal Feeds, Agri Products, Integrated Poultry Business, Oil Palm Plantation and Plant Biotechnology.
Godrej Aadhaar - Introduction: A couple of years back GodrejAgrovet ventured into services cum rural/semi-urban retailing with its
'Godrej Aadhaar' chain of outlets. The initiative was driven by the single-minded objective of improving the life and livelihood of Indian rural community. Currently there are 45 Godrej Aadhaar Centers operational across the country in the states of Maharashtra (11), Gujarat (6), Punjab (16), Haryana (6), Andhra Pradesh (1), Orissa (1), West Bengal (2) and Tamil Nadu (2).
Godrej Aadhaar - the evolution: Godrej Aadhaar started offas an initiative to provide Indian farming community with quality agri-inputs and reliable agri-advisory services at the last mile, thus improving the productivity and income levels. Now it has taken up a more holistic objective of providing all the solutions to rural/ semi-urban India under one roof, viz. agri-inputs, free technical guidance/agri advisory, consumer products and services with focus to facilitate financial, healthcare, education and entertainment services etc.
While agri-inputs and agri services still remain the core of Godrej Aadhaar, availability of other consumer products and aggregation of various utility services in an enhanced retail experience for the rural population would make them the “transactional hubs” of rural/ semi-urban India.
Godrej Aadhaar - expansion plan: With a first handexperience of the rural consumer, the Aadhaar centers have now evolved into a complete retail model. It has aggressive plans of becoming one of the largest agri-services cum retail chain of the country with 50 Aadhaars by March 2007 and 1000 Aadhaars within next five to seven years.
Scope for Partnering: We believe that strategic partnership isthe key mechanism that would enable us to work towards a viable business in the long term. Partnerships increase the level of sustainability because they provide diversity in offering, expertise in respective business domains and involve more stakeholders in working towards success of a deserving cause. We already have alliance partners like Apollo Pharmacy, Bajaj Allianz Insurance, ICICI Pru Life Insurance, HDFC Bank, Tata Sky, Maxima Quartz (PA Time Industries), Zenith. And we look forward to promote a sprit of co-operation, collaboration, network, and partnering among other like-minded associations. Welcome to the Aadhaar movement!
Our Proposal for Promoting Education & Vocational Courses from MEHTAB COMPUTERS Institute
Variable period pilot with dedicated space in Barnala Aadhaar location with good visibility and basic infrastructure.
Terms & Conditions
- Space and basic infra provided by us
- Equipment/computers etc provided by the partner
- Publicity done by Aadhaar
- Teachers/training materials provided by partner
- Revenue sharing basis - 65 (Institute): 35 (AADHAAR
Aadhaar’s Structure
(Agri. section)
Store In-Charge (S I)
↓
Technical Service Incharge (T S I)
↓
Field Service Assistance (F S A)
↓
Farmer (Target Customer)
Aadhar Retailing Limited operates as a rural retail chain selling farm outputs like wheat and paddy. The company also provides farmers with solutions to problems regarding their agricultural output, which includes what kind of crop can they plant and when, along with techno-commercial suggestions to help them give a better output. It also offers insurance products to cover their risk and supermarkets for their daily needs. The
company is based in India. Aadhar Retailing Limited formerly operated as a subsidiary of Godrej Industries Ltd. As of March 31, 2008, Aadhar Retailing Limited operates as a subsidiary of Pantaloon Retail (India) Ltd.,
Godrej And Future To Divest Stake In Aadhar Retailing To PE Players
Godrej Industries Limited may hold slightly less than 30% direct stake in the wholesale venture of Future Group likely to be rolled out shortly. Godrej already has a 36% stake in Aadhar Retailing Limited. Aadhar Retailing is the front-end entity for Future Group's rural retail venture. Future Group’s CEO Kishore Biyani said Future Ventures India Ltd will have 50% stake in Aadhar Retailing and the remaining stake will be held by Godrej and private equity players. He said: "The initial plan was that Future Ventures will have 70% and Godrej 30%. But now, both Future Ventures and Godrej would offload part of their stakes to PE players."
Rabo Fund Eyeing Future’s Cash & Carry Arm
Rabo Equity Advisors is reportedly going to sign a deal next week to acquire about 20% stake in Rural Fairprice Wholesale, Future Group's cash-and-carry entity for rural retailing and sourcing business, a person close to the deal said. Rabo Equity is acquiring the stake held by Aadhar Retailing Limited. Rajesh Srivastava, CMD of Rabo Equity Advisors, said: "We will announce our plans at the appropriate time." Future Group CEO Kishore Biyani and A Mahendran, FMCG director of Godrej Group, who holds a 4% stake in Aadhaar Retail, declined to comment on the deal.
Rabobank’s PE Fund Reportedly Eyes Stake In Aadhar
The offshore private equity (PE) fund of Coöperatieve Centrale
Raiffeisen-Boerenleenbank B. (Rabobank) is in discussions to acquire a stake in Aadhar Retailing Limited. According to people close the situation, India Agri Business Fund may acquire about 25% stake in Aadhar. Future Group is known to be in contact with a number of private equity (PE) funds to raise money for expanding its businesses. It has been reported that talks are being carried out by Rabo Equity Advisors. Rajesh Srivastava, CMD of Rabo Equity Advisors said: "We are interested in several businesses the group is in. However, that we are in discussion does not mean there is a deal on the table."
About GAVL: Godrej Agrovet Ltd (GAVL) is part of the Godrej Group of Companies, which is a household brand in India with diversified business interests. GAVL is Rs. 1000 Cr company closely associated to rural India through various aspects of Agri Business like Animal Feeds, Agri Products, Integrated Poultry Business, Oil Palm Plantation and Plant Biotechnology.
Godrej Aadhaar - A couple of years back Godrej Agrovet ventured into
services cum rural/semi-urban retailing with its 'Godrej Aadhaar' chain of outlets. The initiative was driven by the single-minded objective of improving the life and livelihood of Indian rural community. Currently there are 45 Godrej Aadhaar Centers operational across the country in the states of Maharashtra (11), Gujarat (6), Punjab (18), Haryana (6), Andhra Pradesh (1), Orissa (1), West Bengal (2) and Tamil Nadu (2).
Godrej Aadhaar - the Evolution: Godrej Aadhaar started off as an initiative to provide Indian farming community with quality agri-inputs and reliable agri-advisory services at the last mile, thus improving the productivity and income levels. Now it has taken up a more holistic objective of providing all the solutions to rural/ semi-urban India under one roof, viz. agri-inputs, free technical guidance/agri advisory, consumer products and services with focus to facilitate financial, healthcare, education and entertainment services etc.
While agri-inputs and agri services still remain the core of Godrej Aadhaar, availability of other consumer products and aggregation of various utility
services in an enhanced retail experience for the rural population would make them the “transactional hubs” of rural/ semi-urban India.
Godrej Aadhaar - Expansion plan: With a first hand experience of the rural consumer, the Aadhaar centers have now evolved into a complete retail model. It has aggressive plans of becoming one of the largest agri-services cum retail chain of the country with 50 Aadhaars by March 2007 and 1000 Aadhaars within next five to seven years.
Scope for Partnering: We believe that strategic partnership is the key mechanism that would enable us to work towards a viable business in the long term. Partnerships increase the level of sustainability because they provide diversity in offering, expertise in respective business domains and involve more stakeholders in working towards success of a deserving cause. We already have alliance partners like Apollo Pharmacy, Bajaj Allianz Insurance, ICICI Pru Life Insurance, HDFC Bank, Tata Sky, Maxima Quartz (PA Time Industries), Zenith. And we look forward to promote a sprit of co-operation, collaboration, network, and partnering among other like-minded associations. Welcome to the Aadhaar movement!
Our Proposal for Promoting Education & Vocational Courses from MEHTAB COMPUTERS Institute
Variable period pilot with dedicated space in Barnala Aadhaar location with good visibility and basic infrastructure.
Terms & Conditions
- Space and basic infra provided by us
- Equipment/computers etc provided by the partner - Publicity done by Aadhaar
- Teachers/training materials provided by partner - Revenue sharing basis - 65 (Institute): 35 (AADHAAR)
Aadhaar - Punjab
1. Batala
2. Ajnala
3. Mehtachowk
4. Tarantaran
5. Goindwal
6. Kapurthala
7. Malsian
8. Dharamkot
9. Sultanpur Lodhi
10. Jagraon
11. Barnala
12. Malerkotla
13. Samana
14. Khanna
15. Firozpur
16. Doraha
17. Samrala
18. Machhiwara
19. Nabha
Aadhaar - Haryana
1. Sirsa
2. Karnal
3. Jundla
4. Hansi
5. Kaithal
6. Kurukshetra
7. Yamunanagar
8. Assandh
9. Meham
10. Gohana
11. Narwana
12. Sonipat
38
STANDARD OPERATIONAL PROCEDURE
AADHAAR RETAILING LTD. - STANDARD AUDIT
MONTH: _____ _DATE:_ _______ STORE:IN LINE = “1” POINT NOT IN LINE = “0” POINT MAX.POINTS:
S.
N
O
CRITERIA
POINTS A REGISTERS 1 .STAFF ATTENDANCE REGISTER
2
. STAFF IN & OUT REGISTER
3 .
STAFF CASH DECLARATION REGISTER
4 .
OUTSOURCED MANPOWER ATTENDANC 5
. STORE OPENING CLOSING REGISTER
6 .
STORE KEY HANDOVER REGISTER
7 .
CUSTOMER ENTRY TRACKER
8
. CUSTOMER RETURN GATE PASS
9 .
UN CLAIMED BAGGAGE REGISTER
1 0 .
LOST & FOUND
1 1 .
STAFF PURCHASE REGISTER
1 2 . DSP REGISTER 1 3 . INWARDING REGISTER 1 4 . OUTWARD REGISTER 1 5 .
GATE PASS – FORMAT
1 6 .
DAMAGE & EXPIRY REGISTER
1 7 . SCARP REGISTER 1 8 .
SCARP SALES REGISTER
1 9 .
SIS GOODS MOVEMENT REGISTER
2 0 .
FREE GIFT REGISTER
2 1 .
PRODUCT EXCHANGE & RETURN REGISTER
2 2 .
OPERATIONS LOG BOOK
2 3 . VISITOR'S REGISTER 2 4 . FUEL REGISTER 2 5 .
GODOWN OPERATING REGISTER
2 6 .
GODOWN KEY LOG BOOK
2 7 .
AGRI DAILY TRANSACTION REGISTER
B
CHECK THE FOLLOWING
1. CHECK ALL PREVIOUS DAYS RECEIPTS & DOCUMENTATION COMPLETE
2. RECEIVING PROCEDURE IS ADHERED TO
3. FILING OF ALL DOCUMENTS ( STN / CHALLANS / INVOICES )
4. STAFF ATTENDANCE TIME (Attendance Register signed by all employees regularly)
(Check on employees on rolls are physically present or not in the store)
5. HOUSE KEEPING STANDARDS
a) FLOOR b) SHELF c) GODOWN
6. STAFF GROOMING STANDARDS (CHECK ID CARDS)
7. STORE OPENING/CLOSING PROCESS (SEALING OF LOCKS)
8. CHECK STOCK CONTROL LEDGER MAITENANCE
9. CHECK DATE & SIGNATURE ON OPERATION’s MANAGER VISIT
( As per Schedule ) Last Visit mr.sumant dt.06.07.10
C COMMERICAL INFORMATION ( Forwarded to State Accounts )
1. TOTAL PHYSICAL CASH ON HAND:
2. PETTY CASH -
3. SALES CASH - Cash Sales on Date 07.07.10
4. OTHER CASH (If Any) –
5. CASH DEPOSITED IN BANK ( For Previous Day’s Sales ) – ( Last Cash Deposit in
bank on08.07.10
TOTAL POINTS ACTUAL
PERCENTAGE OBTAINED
A Standing Operating Procedure: A set of
instructions covering those features of
operationswhich lend themselves to a definite or standardized procedure without loss of effectiveness. Also called SOP. See FM 6-0 or FM [1]
[edit] Major Stages in the Preparation of an SOP Manual
The preparation of an SOP manual is an involved task and usually involves three major stages:
1. Business systems and process study by intensive interaction with process owners, managers, operatives, etc. to understand in detail the tasks that are performed.
2. Preparation of the draft manual
3. Finalisation of the draft manual after discussion with users where any errors are corrected and process improvement recommendations are discussed and accepted or rejected.
[edit] Contents of a Standard Operating Procedure (SOP) Manual This section describes the possible contents of an SOP manual for an organization. Almost any type of organization – whether profit-making or otherwise - could use this template since the manual is concerned with business processes and operations.
1. Objectives of the SOP Manual
An SOP manual typically describes the standard operating procedures (SOPs) followed for various business processes within an organization Its main objectives are:
a. To systematically record all current business policies, processes and procedures currently followed
b. To clearly indicate the flow of actions performed from beginning to end of the process chain
c. To inculcate a culture of “CONTROL CONSCIOUSNESS” among process owners and operatives
d. To observe shortcomings in these policies, processes and
procedures and make suitable recommendations for improvements in the policies, process effectiveness, process efficiency, internal controls and compliance, as applicable, and
e. To serve as a basis for disseminating knowledge on the above among employees dealing with the relevant business functions, to enable adequate training to be imparted to concerned personnel with a view to making the business operations person-independent.
f. To act as a reference guide for Internal Audit, which assesses the extent to which the SOP is complied with.
2. Organization Structure
This is a macro organization chart showing the hierarchical or reporting relationships in the organization or business unit for which the manual is prepared.
3. Summaries of Business Processes
Each business process (such as procurement, sales and marketing, planning, quality assurance, production, maintenance, etc.) is summarized, and each summary could contain the following information:
a. Objectives of the business process
b. Micro organization (functional) structure chart
c. Duties and responsibilities of each designated person involved in the process
d. List of tasks performed
e. Summary of Recommendations
The summary of recommended policies and procedures (e. above) lists, for each business process, the (“As-is”) practice, its
risks/shortcomings, and the recommended (“To-Be”) practice, with its expected benefits. Indicate along with each recommended practice the area of improvement envisaged (Efficiency / Effectiveness / Control / Compliance).
4. Detailed Chapters for Each Business Process
Each business process has a chapter containing the following sections: a. Objectives of the business process
b. Summarized Block Diagram of process flow c. Detailed Process Flowchart
d. Outputs and inputs of each step in the process to clearly bring out the inter-dependencies between various functional units in the
organization and between the organization and its internal and external stakeholders (customers. suppliers, etc.)
e. Detailed textual description of process steps in strict logical
sequence. The steps would include both computer-based and manual procedures and are to be described precisely and in the correct
sequence. The text and the detailed process flowcharts should match. f. The description in e. above should include descriptions of procedures to handle exceptions, i.e., exceptional but anticipated events.
g. Internal controls employed in the procedures to ensure that they are correctly and completely executed. Internal controls may be built into computerized business application systems such as ERP systems (like data entry, document preparation or report generation) or may be administrative controls exercised in the non-computer procedures of a business process.
h. Recommendations to improve the effectiveness, efficiency, control or statutory compliance of policies, processes and procedures which would replace the current policies, processes and procedures if accepted by users (if thought essential, desirable or practical, as applicable) after intensive discussions.
i. Exhibits of documents, reports, computer data entry screens, manual registers, etc. that are referred to as inputs to and outputs from
specific procedures
j. Accounting flow clearly showing which financial accounting general ledger accounts are operated wherever specific business transactions need to be recorded in the books of account.
5. Appendices
One or more appendixes may be added at the end of the manual, but at least the following are recommended:
a. List of inputs b. List of outputs
c. Alphabetical glossary of terms [edit] Military use
In militaryterminology SOPs describe a procedure or set of procedures to perform a given operation or evolution or in reaction to a given event. There is a popular misconception that SOPs are standardized. However, the very nature of an SOP is that it is not standardized across a large military element (such as a corps or division) but rather
describes the unique operating procedure of a smaller unit (such as a battalion or company) within that larger element. "Standing" operating procedures take effect until further notice, at which time the issuing authority amend or dissolve them. Therefore, the military more correctly uses the term "standing operating procedure" in lieu of "standard operating procedure."
Unit members typically promulgate SOPs, based on unit experience and local conditions. They are normally approved by the unit's Officer Commanding or Commanding Officer.
SOPs often offer guidance where official doctrine does not cover a situation, or treats a situation only in extremely broad terms. SOPs are often used to provide practical detail to the some times high level guidance of official doctrine.
Where official doctrine exists, SOPs will usually, at least in general terms, adhere to the official doctrine. However SOPs may on occasion ignore official doctrine, especially when a service/corps generally regards official doctrine as out-of-date, inadequate or incorrect. SOPs also differ from standing orders in that personnel may legally disregard or interpret them, as required by the situation; however, acting contrary to a posted command-signed SOP is generally considered the same as violating a published order and punished accordingly.
[edit] Clinical Research
In clinical research, the International Conference on Harmonisation
(ICH) defines SOPs as "detailed, written instructions to achieve uniformity of the performance of a specific function". Organizations involved in clinical research—whether pharmaceutical companies, sponsors, contract research organizations, investigator sites, ethics committees or any other parties—require SOPs to achieve maximum safety and efficiency of the performed clinical research operations. All people and sites involved in clinical studies (both at the sponsor and at
the investigative sites) must have appropriate SOPs in place in order to conduct clinical research in compliance with current regulations.
In the United States of America, the ICH GCP (good clinical practice) Step 5 Guideline (Section 3.2.2) also suggests that an Institutional Review Board (IRB) have its own SOPs or written standard procedures. [citation needed] This itself proves[citation needed] that the presence of SOPs form an integral part of clinical trials at all levels.
Inspections target these quality documents since the most frequent reported deficiencies during inspections are the lack of written SOPs and/or the failure to adhere to them. The risk of GCP non-compliance is high at organizations with a poor availability of
clinical-research-specific SOPs. The risk of GCP non-compliance is also high where SOPs exist but the staff or the people for whom they were written lack
awareness of them or of the need for them.
The training of staff using SOPs therefore becomes very important, so that staff actually become aware of why and how SOPs can play an important role in fulfilling the ICH and other regulatory requirements. [edit] Good business and manufacturing practice
An SOP is a written document or instruction detailing all steps and activities of a process or procedure. These should be carried out[by whom?] without any deviation or modification to guarantee the expected outcome. Any modification or deviation from a given SOP should be thoroughly investigated[by whom?] and outcomes of the investigation documented[by whom?] according to the internal deviation procedure.
All quality impacting processes and procedures should be laid out[by whom?] in Standard Operating Procedures (SOPs). These SOPs should form the basis for the routine training program of each employee. SOPs should be regularly updated to assure compliance to the regulatory requirements and the working practice. A minimum review schedule of 3 years is recommended[by whom?]. Changes of SOPs are in general triggered by process or procedural changes / adjustments. The internal site change-control procedure should manage these changes.
Part of the activity list of such changes should be to update the related SOP. SOPs should be in place for all quality systems plus the specific operational activities on site. The structure of an SOP System and the total amount of individual SOPs should be carefully taken into
consideration[by whom?]. Too many SOPs could lead to a collapse of the SOP System. System SOPs should not be mixed up to keep systems and interaction between quality systems easy.[2] ISO 22000 essentially requires the documention of all procedures used in any manufacturing process that could affect the quality of the product.[3][edit]
Information-technology industry useThe information technology
industry uses the terms "Standard Operating Procedure" and "SOP" interchangeably to describe a best-practice approach to executing
tasks related to the production and maintenance of hardware and software, as well as to incident and change management. A number of packages may aid in the automation of the execution of information-technology SOPs for large enterprises, note for example Creekpath, iConclude and Stratavia's Data Palette.
Competitors of aadhar retail ltd
Big retail charms small towns, inflation no
problem
Posted by Barun Roy on August 27, 2008
