MGT 310

Introduction of logistics and Transportation

Project report on

Genius shopping ltd

Submitted to
Mohammad Abdul Hoque (HQ)
Professor and chair, Department of Management

Submitted by

Name Id

Abdullah Al Noman 1511403030

Rafat Haider Anik 1511442030

Foysal Ahmed Khan 1520638031

Chowdhury Masud Kibria 1520817630

Md Hossain Ahmed Chowdhury 1430276030

Md Towfiqul Islam Sikder 1520100630

Hasibul Hasan Hasib 1511283030

 Executive Summary

Genius is one of the big superstore in Bangladesh. Bangladesh entered to the period of grocery

store around the year of 2000 with Genius starting a mini superstore. Genius is not a sister

concern of any particular organization. This retail chain store has no outlets. Genius is a

marketing organization. It purchases item from the market and pitches it to the clients. As it

doesn't create its own particular item that is the reason it has no generation plant or something

like that. It has a stockroom in the second floor for their market to keep inventories. With the

assistance of stock supervisor we watched the stock floor of Genius. We became more

acquainted with how they deal with the inventories, their operations techniques, and their stock

administration forms quickly. We investigate the entire office. The administrator clarified the

procedures they take after. We investigate the whole market to get the additional information.

In this report we have talked about our insight into Genius stock quickly. We additionally

incorporate a few suggestions in view of our discoveries.

Confectionary Baby Care Beverage Fishes Meat Oil/Fat Powder
Milk
Toblerone Pamper Horlicks Hilsha Beef Rupchada Dano

Macaamia Johnson Milo Katla Mutton Red Cow Diploma

Guylian Rok wetty Viva Rui Chicken Radhuni Nido

Choc Coin Lotion Rooh Afza Rupchada Rajbari Red Cow

Ghee
Mentos Shampoo Boost Prawn Lucy

Tango Powder Maltova Teer

Milk
Cloud 9 Baby oil Complain Kushtia
Ghee
Umbrella Baby Tango
Powder
Galaxy Zam Zam

Kitkat Frutika

Dairy Milk 7up

All Time Pepsi

Lays Coka Cola

Kurkure Pran
Nestle Water

Snickers Energy
drink
Twixx Merinda

Vochelle Fresh

Fox’s Arong

PRODUCTS OF GENIUS
Genius is not a manufacturing company. They buy products from the market and sell it to the
customers. They don’t have their own products. There are hundreds of products they sell. Some of
them are given below:

Analysis of Waiting Line Management

Genius super shop is a well reputed retail shop around Bashundhara area. As they have other

competitors around the area, they must ensure a waiting line management which will help them

to serve the customers efficiently. For the analysis of the waiting line management, it is

essential to know about their logistic process.

Logistic system of Genius Super Shop: Logistic system is basically the detailed organization

and implementation of a complex operation. Genius is retail super shop, which means they

directly interacts with the customers satisfying their daily needs. Although they don’t produce

or manufacture any products, they have a well-established network among the suppliers who

provide them with the best products.

After forecasting demand, they contact with the suppliers. The suppliers then delivers the

products to them. Genius super shop is known for selling daily needed products, so they have

a rough idea of how many products they will need for a particular period. For few products
which have a limited expiry date, they use cross docking. Cross docking is a logistics procedure

where products from a supplier or manufacturing plant are distributed directly to a customer or

retail chain with marginal to no handling or storage time. And for other products they have

huge storage space.

For the transportation of the products, they don’t have any personal transportation system.

Rather they use the supplier’s transportation system to deliver products. As they use supplier’s

transportation system, they have to incur an additional transportation cost. But sometimes the

suppliers doesn’t charge them or sometimes the suppliers gives them a discount.

Genius super shop is a two storied retail shop and in the third flood they have spacious storage.

They sell almost every type of groceries and any daily needed products. Beside that they also

sell cloths and antic item in the 2nd floor. The waiting line management or the que system,

Genius have kept it very simple. They have almost 72 people working day and night. For

simplification, they have different departments for each products which makes the customers

shopping very easy.

They provide them with trollies to carry their desired products. They have a multiple server

waiting line. The customers enters to the counters. There are two counters and at each counters

they have 2 representatives. One deals with bills and the other one quickly checks the products
and starts to packet the products. As line management is crucial for customer satisfaction,

Genius is doing a great work as their line management is very effective and it saves a lot of

time.

APPLICATION OF PRODUCTION AND OPERATIONS

MANAGEMENT CONCEPT:

After visiting the retail shop, we could identify few of the operational management concept
Which Genies Shopping Limited was using. We found some of the concepts after
Interviewed with the employees and manage at the store. Here we discussed some of the
Concept more broadly in the sections.

TYPES OF INVENTORY CONCEPT: They purchase grocery products, baby clothes, daily

necessary Product from the supplier and store these product, all of which can be classified as

‘finished-Goods inventories’. This is supported by the fact that they are a retailer shop.

Additionally, the od demand for these good is ‘independent demand’.

CONCEPT OF PIPELINE INVENTORY: As mentioned in the previous section, they store the

Products in an in-house warehouse until schedules allow for the goods to be display for sold.

Here, e noted out that they practice the concept of ‘pipeline inventory’.
CONCEPT OF QUALITY ASSURANCE: There are to inspection point for maintain the quality of
Purchased product. First one is after they purchase the products and second is when they store

them in warehouse. These inspections occur with a ‘metal detector’ and with present of a

quality inspection manager. Furthermore, they also use ‘barcode reader’ to insure the quality,

expire date, and right measurement of the products. This focuses on their emphasis on finding

and correcting defects before the products reaches the buyer. Thus, this falls under the

‘concept of quality assurance’.

CONCEPT OF QUALITY OF CONFERMANCE: The retail shop always ensures that it meets the

standards set by its buyer. For instance, they frequently inspect the quality of the product

because certain buyers require for this. This inspection done by additional quality inspector

who are assign for reassure the quality of the products in the display. This falls under the

concept of quality conformance.

LOCATION OF FACILITIES CONCEPT: We discovered that the location of the store is so

feasible that transportation is so reliable. For the purchase of product initially this concept of

location helps the retail store most. Thus, with this application of this concept they make sure

the operation goes smoothly.

CONCEPT OF TYPE OF PROCESS: As discussed in the previous sections, the sales area of the

store is consisting of multiple work stations where each sales person continuously performs

the particular task assigned to them. For instance, the sales person for children dress are only

responsible for that section and for grocery section there is a person assigned. Thus, this fall

under ‘repetitive processing’.

CONCEPT OF TRANSPORTATION SYSTEM: Genius shop has not any transportation system.

The supplier or the manufacturer are responsible to deliver the product. They do not have

their own transportation system. The supplier or the manufacturer delivery the product by

their transport. After delivering, manufacturer charged for the transportation cost to the

genius shop. And the manufacturer who mainly deliver the huge amount of product in a

month, they usually give discount on transportation cost to genius shop.

CONCEPT OF LAYOUT OF THE PRODUCT: The product lay out system of genius superstore is

very good. Genius is located in Bashundhara. The full space of genius including warehouse is

privately owned. There are various types of products in the shop and for specific product,

they set specific row and self in the superstore. They decorate the superstore with their

products very well for their customer’s satisfaction. A customer can easily identify the

product they want.

CONCEPT OF HOME DELIVERY SYSTEM: As we mentioned before, genius is located in

Bashundhara and they have been running their business more than 20 years in Bashundhara.

And specially people living in Bashundhara come to genius for their daily shopping.so genius

super shop is a trustful place for the people living in Bashundhara. So, they have a home

delivery system for the people living in Bashundhara. They have some pickup vans to deliver

their product. They have some hotline numbers for the home delivery. The customer contact

through the numbers and order for delivery. But this delivery system is only for the people

living in Bashundhara. But they don’t have any online communication system. Only system

for home delivery is phone call. But if they broad their business, then there is a possibility to

establish online order system.

CONCEPT OF SECURITY MEASUREMENT: They have a strong security system in their retail

shop. The technologies they are using for the superstore are very advanced. After getting the

products from manufacturer, they keep half of the product in warehouse and half of the

product in their retail shop. So, in to places, they have strong security system. they have given

‘okitoki’ to their thirty employees by which they connect very easily and control the

superstore, self for keeping customer’s bag, close circuit camera, their employee by which

they can control over the whole superstore. Even in warehouse they set close circuit camera

to give the strong security.

ANALYSIS OF QUALITY CONTROL ISSUES:

One of the key factors in running a successful supermarket is establishing consistent quality

control – both in terms of having a high volume of stock and in the quality of individual

products as they are delivered to the store. Inadequate attention to these areas can lead to loss

of sales. At Genies Shopping Center, we interviewed the manager to know about measurement

they take to face the quality issues on a daily basis. Basically their way of quality control

involves sampling product from stock. When a stock arrive to their store they take random

piece from that stock and try to detect any defective product. If the rate of defective product is

higher in sampling then they refuse to take that stock. This is the first step of quality control.

They second process begin right after placing those product into store showcase. They have

management software where they input the arrival date of all the products. So that, just before

the stock run out, they receive a red signal from that software that they have to pre-order to

manage their stock. The software also allows them to know expire date of certain products. The

store use barcode machine to input products expire date into the management software. Along

with the software, they also have one quality control manager who inspect all the inventory

products to find out any broken or damage product. Stuffs are also responsible for the daily
 monitoring of store aisles and displays. New products are being introduced to market every

day. To keep the store updated with new products the quality control manager take notes from

the customers whoever seeking for new items and if the request for a particular product is

frequent enough then immediate order is placed. According to the manager, effective quality

control requires management and staff to work together toward the goal of a successful

supermarket business.

PROCESS MAP FOR PRODUCT MANAGEMENT

ORDER PLACEMENT BACK TO THE

MANUFACTURER

PRODUCT
INSPECTION LOW DEFECTIVE HIGH DEFECTIVE
ORDER ARRIVAL
(SMAPLING) PRODUCT RATE PRODUCT RATE

STORAGE TO INPUT PRODUCT

INVENTORY INFORMATION

PRODUCT EXPIRE / DISPLAY PRODUCT DISPLAY PRODUCT

RUN OUT ALART INSPECTION TO SHOWCASE

PRODUCT WASTAGE / END

PLACE NEW ORDER
 Analysis of Demand forecasting
Demand forecasting is predicting future demand for the product. In other words, it refers to the

prediction of a future demand for a product or a service on the basis of the past events and

prevailing trends in the present.

Genius shopping limited use more sophisticated software for demand forecasting. After talking

with the employer we can know that they use naive method for demand forecasting. Estimating

technique in which the last period's actuals are used as this period's forecast, without adjusting

them or attempting to establish causal factors. It is used only for comparison with the forecasts

generated by the better techniques.

The store product according to their warehouse capacity. For the daily necessity product they

order more. They increase approximately 5% of buying product every year. It’s based on

market situation. Sometimes their forecasting technique is not effective because when seasons

change they have to face different kinds of problem for storing the product. They should use

better method for the demand forecasting.

For their planning purchases they do not use any forecasting. They should use short range

forecasting planning purchasing and for sales planning, budget planning they should use
medium range forecasting and for planning new product, facility location they should use long

range forecasting.

They use consumer market survey to increase product Varity and improving product design.

For checking forecasting error they use mean standard deviation measurement method.

Operational problems

1. Genius shopping ltd have no specific quality monitoring tools. They should increase

superior customers’ service by arranging best quality of goods.

2. Genus shopping ltd don’t have proper balancing in warehouse. They buy the product

from the supplier then store in the warehouse. From the warehouse the directly place

half of the product in the store. And when they store remaining half of the product in

the next time they don’t check it they quality.

3. Their product arrangement is not that much good. Product arrangement is so much

complex so that customer don’t get their product easily.

4. They need more outlet for better customer’s satisfactions.

5. The cost of most perishable items are very high compared to the general trend of the

market.no matter how marketing manager tries to explain their reason behind this high

price the customer would invariably tend to shift to the sources that provide them at a

lesser price if they do not feel that the price they are paying is the worth convenience.
6. They do not arrange their product as a way that consumers can easily purchases all

kinds of product at a short time, because most customer remain busy so maintain their

products with symmetrically for reducing the time consuming.

7. In the quality control process of Genius there is a big problem as it does inspect its

products only once, while taking the delivery of the products from the suppliers before

taking those to Warehouse, but Genius does not inspect their product before taking

those to the stores from to Warehouse. In the warehouse, products can get damaged for

many reasons. So, not inspecting the products before taking those to stores is causing

issues in assuring quality control.

8. Warehouse of Genius are on the market. They use one building to their superstore,

office and warehouse which situated the same place .I personally visited their

warehouse but the way they keep their product is not maintain the proper quality

standard.

Recommendations for improvements in business operations

For better business system the organization should more focus on Supply chain

management. It is the most important part of any business. And it becomes more

important when it comes to grocery related business. Because for this kind of business

supplier plays a massive role. Genius shopping store sell different types of grocery

product. Frist of all every grocery business need dedicated, trusted supplier who ensure

the best quality product every morning. One trick that every super shop do is not depend

on only one supplier. It has many more problem. Such as product variety, inventory

turnover flexibility, healthy competitions among suppliers. So they need to create good
relations with the different kinds of supplier. In order to maximize more profit the

organizations should start using home delivery. Now a days people are more flexible,

they want to save their valuable time.

For customers satisfaction they should focus on “Total Quality Management” approach.

This approach will help the organization to maximize profit by selling more product.

Another important thing is storage or inventory planning or we can say “capacity

planning”. Every super shop or grocery shop need to make a specific plan on how many

products they store, what would be the time duration of time duration of store, which

product specifically store in which quantity. Because if it stores massive amount of low

demand product it would be the disaster. It directly effects in profit. For the long term

product they have to work for design capacity, production capacity, sustainable capacity

and effective capacity. For the customer satisfaction they have arrange their different

item in different place. Like an example for more necessary item should place in front

of the shop.

In order to reduce holding cost they need a proper balance of product. In the genius

shopping ltd warehouse system is not good. They don’t balance their product. They buy

product different of supplier but when they store it they don’t balance it. Their product

is placed on the stair. As a result their holding cost increase.

They should make an effective transportation schedule which ensure the cost

effectiveness and keep the quality good. For reduce the cost of transportation they

should follow the www.findatruckload.co.nz like software.

In order to reduce monotony on the job, the organization could introduce principles of

“job enlargement” and “job enrichment” that will help employees more productive and

interested in work. The organization should empower their employees.

In order to create more profit, genius shopping need more outlet in Dhaka. Now a days

for stay in the market it’s very important to create more outlet for capturing the

customers.

In order to regular customers they should implies some extra value added rule. Like an

example they can give rewarded card for the more valuable customers.