• Need #1: To identify, count and record the physical stock available in the store

• Need #2: To reduce manual errors in the process and increase accuracy

• Need #3: To ensure that the entire stock take exercise takes place in a timely manner so that loss of
  sale due to closure is minimised

• Need #4: To have the entire data of the stock take exercise ready in a proper format without the need
  for any manual data entry

• Need #5: To reduce product movement and handling during the stock take process

To provide a mobile computer based solution for stock taking at the stores.

• Goal #1: To use bar-coding to uniquely identify each item without any errors

• Goal #2: To have real-time data availability and transfer to the back end system at the store in order
  to avoid manual data entry

• Goal #3: To provide a software application that will help regulate and control the entire stock process,
  for operator control, data collection and process monitoring

The recommendation is to have an integrated, connected solution for the process, which will use bar-coding, mobile computers, wireless networking and application software

• Recommendation #1: The stores should be wirelessly networked for carrying out the stock take
  exercise. This could be a temporary arrangement for the duration of the exercise only.

• Recommendation #2: Use Mobile computers for scanning the barcodes on all the products so that
  there are no identity issues. Enter the quantity on the mobile device itself to avoid manual data entry at
  a later stage. Products should be counted at their bins itself without removing them from their locations.

• Recommendation #3: Use a real-time data acquisition and storage application on a laptop for
  capturing the data from the mobile devices and controlling the entire stock take process.

A Retailer will realize the following benefits provided by this project:

• Error Free data - No errors in the identification of products and capturing the quantity.
   The entire process is carried out using barcode scanning and data entry is on mobile computers
   directly. Additionally, the data entry is validated at each entry point, in order to ensure clean
   information for the backend. This is a huge benefit, which ensures confidence on the data collected.

• Removal of Manual Data Entry - Automatic data collection and collation at back-end without need
   for manual data entry.
   All the mobile computers are wirelessly connected to the backend server application and hence the
   data is transferred to the back-end at the point of activity. This eliminates the need to manually enter
   the data into the system during or after the completion of the exercise. Besides ensuring error-
   proofing, it also saves valuable time and manpower for a perhaps non-productive exercise. Further, it
   avoids delays in starting the store until data entry is completed.

• Reduction in shop closure time - Being able to predict closure duration and minimising it.
  This is the single biggest benefit that will provide the ROI for the entire solution. The time for the
  entire exercise isdramatically reduced, due to elimination of the manual processes and non-productive
  activities of data entry. Further, certain functions that need to be done only after completion of
  data entry can now be done as they occur, since data capture at back-end is happening in real-time.

• Real-time Data Capture - Real-time visibility of data for analysis and control.
  The data captured by the operators is available at the backend in real-time. This ensures 100%
  transparency during the process and supervisors can analyse the progress and data as it is collected.
  This makes it possible to identify delays, bottle-necks, operator irregularities as they happen so that
  corrective action can be taken immediately. Issues that may delay the process are highlighted
  immediately. Using pre-defined rules, the captured data can be analysed as it comes in. This can
  generate alerts like over-limit variations, in-ordinate delays in the process, missing SKU's in the master.

• Elimination of excessive handling and movement of products - Data is captured at the bin itself
  Products are scanned and identified at the bin location itself and also quantities are entered there itself.
  Therefore the products don't move off the shelf and damages due to handling are eliminated. Further,
  time lost during such movement and the manpower required is saved.

• Capture of Batch and MRP information - Capture of critical inventory data can best be done during
  a stock take.
  Batch and MRP information of the stock in the store is very critical to validate the correctness of the
  database and also to ensure that the age and value of the inventory being held. This is very critical
  information for a distribution network in order to ensure bottom lines in the business. Expiry of stock
  can be avoided using this information which can have a huge impact on reducing losses in the
  distribution chain.

• Capture of actual Plan-o-gram in the store - Layout of product displays in the store has a great
  impact on sales.
  Store planners have defined layouts for display of products at the store. It is very essential to have
  these adhered. A physical stock take exercise generates the actual bin-wise display situation at the
  store which allows the planners to understand the dynamics at play in the store. Further, it gives a good
  insight into the discipline and hygiene being maintained in the store.

• Identification of barcodes that cannot be scanned - If barcodes cannot be scanned at the till,
  then shrinkages increase.
  If a barcode on a product doesn't get scanned at the till, then the salesperson has to enter the product
  code and this can lead to errors. Mistakes in product identification at this stage lead to inventory
  mismatches. When a physical stock take is done and all product barcodes are scanned, barcodes that
  cannot be scanned are immediately highlighted and this can be reported from the captured information.

• Identification of SKU's without barcodes - Cent per cent barcoding is a business vision to
  eliminate operational errors.
  When a stock take is carried out, products without barcodes are immediately identified and this can be
  reported from the captured data.

• Validation of MBQ at Stores - Non-availability of all stock items at the store can result in loss of sale.
  Each store has a list of items that should be stocked and this need to be monitored. During a stock take
  exercise, the captured data can be analysed on the spot to identify stock-out items and excessively
  stocked ones. This can be very useful analyses to reduce inventories and also to reduce lost sales
  opportunities.

Following is a brief synopsis of the major features of the solution that will benefit Retailers:

• SKU identification - When a barcode is scanned at the bin, the mobile computer immediately and
  quickly retrieves the description from the back-end.

• Minimum operator intervention - The entire operator interface is very intuitive and requires least
  user intervention. The operation is controlled and directed by scanning only. Minimal data entry is done
  using the keyboard, limited only to entry of quantity. When barcodes are scanned, the item is
  automatically recognised. Whether a rack or an SKU is scanned, the application identifies the changes
  and accordingly the user is directed. This ensures minimum error from the operators and training cycles
  are short.

• 100% scanning can be made mandatory - The back end controls front-end action. In case an SKU
  needs to be scanned 100%, the corresponding SKU is flagged off and the application forces the operator
  to scan all the products. Control is from the back-end.

• Rack allocation and control - The store is mapped into Racks and the racks are assigned to
  operators. This controls the operators and prevents them from scanning products that are not assigned
  to them. It ensures that duplicate scanning doesn't happen.

• Time Stamping - The operation is timed and time stamps are assigned to each action. It allows a
  detailed analysis of the entire operation.

• SKU Search - In case an SKU is not found by scanning in the barcode, it can be searched in the
  database using the description. A very intuitive search engine allows easy searching.

• Kit identification - Identification of the mother SKU in the kit is a very typical problem for an operator
  when counting a SKU. If mother SKUs are flagged in the database, then the operator can validate
  whether the scanned SKU is a mother product of the kit or not. This is a very useful feature to eliminate
  errors in counting kit products.

• Operator identification - Each operator has to log into the backend server application before starting
  the job. This captures all the operator specific actions for later analysis of operator efficiency. Also
  gives an insight on how good or bad the hygiene of the store in terms of product organisation and
  segregation which can cause delays in the exercise.

• Back-end alert for variance - When an operator completes an SKU, the back-end immediately
  validates it against the book stock and if there is a variance beyond the limits, it immediately flags off
  an alert which the supervisor can then attend to immediately. This doesn't leave him to do these tasks
  after the entire exercise is over. This saves precious time and errors can be cleared as they occur.

• Capture of new SKU - If an SKU is not in the database, then the user can identify it with a temporary
  tag and the quantity of the item is captured in the backend in a suspense area. The supervisor receives
  a single piece of this item and after entering the balance details for this item he clears the suspense
  entry.

• Auto identification of F&V - The device application is capable of identifying an F&V barcode from
  another SKU barcode. This allows the operator to continue scanning without any special settings to be
  done in the application. The application totals the quantities of each F&V pack and also keeps a count of
  the number of packs that were scanned.

• Portable solution with rapid deployment - The entire solution is portable in nature and can be
  deployed in minimum with least configuration. The wireless infrastructure is independent of the
  corporate network and doesn't breach any enterprise security norms. This makes the team nimble and
  multiple sites can be covered in the same day.

• Batch and MRP verification – If the batch and MRP information is available at the store level, then
  each SKU can be tagged with the batch found on the shelf. Even the MRP of the items can be checked
  from a list that comes in from the back-end. This is a perfect way of getting batch and MRP information
  of the physical stock in the store.

• Perpetual Inventory – When the information flow is seamless across the enterprise, Perpetual
  Inventory can be a reality. In such a situation, there is no shutdown of the store and business can go on
  as usual even when a stock count is going on. This is the ideal situation for any fast moving retail
  business.