CIO IN

HyperCity Automates Distribution Centers’ for Efficiency

A case study on Information Technology in Retail
CIO Team

Executive Summary

CIO 100 Winner: Read how Veneeth Purushotaman knew exactly which problem to attack and how to fix it to ensure that costs are cut and sales increase. Today, when a product arrives at the DC, the receiving team loads its purchase order on a handheld scanner device. This document shows the exact location of a product and the number of pieces to gather.

HyperCity Retail is a big-box hypermarket with three stores covering over 2.2 lakh sq.ft. All the hypermarkets have 'back-stores' to store merchandise, but because retail space is expensive these store-rooms only hold a day's worth of inventory. The bulk of HyperCity's inventory is maintained at mammoth 200,000 sq.ft. distribution centers (DCs) on the outskirts of a city. These DCs handle about a million SKUs and 1,200 vendors.

To make certain that the hypermarkets' shelves are always stocked, the DC's processes have to be automated. DC personnel set themselves a target of achieving a minimum of a 95 percent fill-rate across all categories for store transfers and also receive goods with minimum vendor vehicle turnaround time.

"It was clear that to ensure on time fulfillment of store transfers, the DC's processes had to be automated. In order to help optimize various processes and reduce the time spent in the DC, we knew that the solution had to run on a mobile device," says Veneeth Purushotaman, head-technology, HyperCity Retail.

Today, when a product arrives at the DC, the receiving team loads its purchase order on a handheld scanner device. This helps reduce manual entry (and its accompanying errors). Once the items are received, the warehouse management system prints out a 'put-away' document. This document is now available on the scanner and guarantees that a DC staffer puts items away correctly. Finally, when it is time for inventory to be moved to a store a 'pick' document is assigned to a 'picker' using a wireless hand-held scanner. This document shows the exact location of a product and the number of pieces to gather. If an item is not on the pick list an error message informs the picker.

Within a month of the implementation, staff costs at the DC fell by 23 percent, and sales rose by 25 percent. As envisioned, turnaround time fell by 12 hours, because errors from misreading data virtually disappeared. Purushotaman's solution also created a unique bond between IT and business processes, creating happier employees. "Attrition is near zero and the enthusiasm and motivation that the DC management system has generated has helped the DC set new benchmarks for retail logistics and warehouse management in India."

The Person Behind It

image description
Veneeth Purushotaman, Head-Technology
HyperCity Retail
"By eliminating errors from misreading data, turnaround time dropped by 12 hours while sales zoomed by 25 percent."

Other Information Technology Case Studies

image description
Suresh Shanmugam National Head, BITS and CIO, Mahindra Finance

Mahindra Finance Expands its Reach With Handhelds

A case study on Handheld in Information Technology

Reach and speed are key to Mahindra & Mahindra Financial Services' thriving business in rural India. So, it empowered its field force with handhelds, creating 3,000 mini-branches in nine months.

Other Retail Case Studies

image description
Sanjay Kotha CIO, Bharti Retail

An Intranet Portal Boosts Collaboration and Productivity at Bharti Retail

A case study on in

CIO 100 Winner: As a start-up organization, Bharti Retail needed to create a central platform to provide employees with a single point interface for all communication, processes and applications.Here's how they did it