BDM_Proposal

Operational Optimizing for Sustainable Growth in a  Grocery Store

 

A Proposal report for the BDM capstone Project

 

Submitted by

                                     

Name: 

Roll number: 

 

 

 

IITM Online BS Degree Program,

Indian Institute of Technology, Madras, Chennai

Tamil Nadu, India, 600036

 

 

Serial No.	Contents	Page
1	Executive Summary and Title	4
2	Organisation Background	5
3	Problem Statement	5
3.1	Problem statement 1	5
3.2	Problem statement 2	5
3.3	Problem statement 3	5
4	Background of the Problem	6
5	Problem Solving Approach	6
6	Expected Timeline	8
7	Expected Outcome	10

 

 

 

 

 

 

 

 

 

Declaration Statement

I am working on a Project titled “Operational Optimizing for Sustainable Growth in a First-Generation Grocery Store”. I extend my appreciation to Ghosh Brothers, for providing the necessary resources that enabled me to conduct my project.

I hereby assert that the data presented and assessed in this project report is genuine and precise to the utmost extent of my knowledge and capabilities. The data has been gathered from primary sources and carefully analysed to assure its reliability. 

Additionally, I affirm that all procedures employed for the purpose of data collection and analysis have been duly explained in this report. The outcomes and inferences derived from the data are an accurate depiction of the findings acquired through thorough analytical procedures.

I am dedicated to adhering to the principles of academic honesty and integrity, and I am receptive to any additional examination or validation of the data contained in this project report.

I understand that the execution of this project is intended for individual completion and is not to be undertaken collectively. I thus affirm that I am not engaged in any form of collaboration with other individuals, and that all the work undertaken has been solely conducted by me. In the event that plagiarism is detected in the report at any stage of the project's completion, I am fully aware and prepared to accept disciplinary measures imposed by the relevant authority. 

I understand that all recommendations made in this project report are within the context of the academic project taken up towards course fulfilment in the BS Degree Program offered by IIT Madras. The institution does not endorse any of the claims or comments.

Signature of Candidate:

Name: 

Date: 

1.  Executive Summary and Title (200 Words)

 

·       Details about the organization

The project focuses on a small grocery store located at Basirhat, West Bengal, India. The business is B2C and deals in the segment of daily consumer goods, including groceries, fresh products, packaged foods and household essentials.

·       About the problem

The grocery store located in Barasat, West Bengal, operates as a B2C business catering to the daily needs of the local population. Despite having a consistent customer base and a wide range of essential grocery items, the business is currently facing significant challenges related to profitability. One of the key issues is the presence of excessive inventory, which ties up capital and leads to wastage, especially in the case of perishable items. The lack of an efficient inventory management system results in overstocking, stockouts, and ultimately affects sales and customer satisfaction. Additionally, the absence of data-driven decision – making processes in procurement and sales tracking further exacerbates these problems, preventing the business from optimizing operations and improving profit margins.

·       Possible approach and solution

To address the challenges faced by the grocery store, a systematic and data driven approach will be adopted. The goal is to optimized inventory levels, improved sales tracking, and enhance and corresponding solutions include:

1.     Data Collection and Cleaning:

Collect past records related to sales, inventory, procurement, and customer preference. Ensure the data is clean, consistent, and organized for analysis.

 

2.     Inventory Optimization:

Implement inventory control techniques such as ABC Analysis and EOQ to identify fast-moving, slow-moving, and high-value items. This Helps reduce overstocking and prevent dead stock.

 

3.      Sales Pattern Analysis:

Analysis historical sales data to identify peak seasons, high-demand products, and customer buying behaviour. This will Support Targeted Stocking strategies and promotions.

 

4.     Profit Margin Tracking:

Evaluate cost versus selling price across product categories to identify low-margin products. The store can then revise pricing or discontinue unprofitable items.

 

5.     Visualization and Reporting:

Use dashboards and visual tools to monitor performance metrics such as sales trends, stock status, and profit margins in real-time for quick decision-making.

 

6.     Implementation of a simple Digital Inventory System:

Recommended affordable software or even spreadsheet-based tracking systems to help the store owner better manage stock levels and automate alerts for recorder points.

 

 

2.              Organization Background (150 Words)

 

The grocery store under study is a first-generation, small scale retail business located in Barasat, an urban town in West Bengal, India. Established with limited capital and resources, the store was stated by a local entrepreneur, the store caters to the daily needs of residents in the town and nearby rural areas. It offers a variety of essential products including rice, flour, spices, packaged foods, snacks and household items.

Operating without the advantages of inherited experience or infrastructure, the business relies on traditional practices such as manual inventory tracking and cash transactions.

Despite having a steady customer base, the store faces challenges like overstocking, inefficient inventory management, and thin profit margins. The absence of digital tools and data-driven decision-making further impacts operational efficiency. As the owner seeks to improve performance and profitability, the project aims to introduce simple, analytical approaches to optimize inventory, forecast demand, and support better business decisions for long-term sustainability.

3.              Problem Statement (Listed as objectives) (50-75 Words)

1. Inventory Mismanagement: The store faces overstocking and understocking issues due to the absence of a structured inventory management system.
2. Lack of Data-Driven Decision Making: Business decisions are made based on intuition rather than sales or inventory data, leading to poor purchasing and stocking strategies.
3. Low Profit Margins: Without clear pricing strategies and proper cost monitoring, the store earns minimal profits despite regular sales.

 

 

4.              Background of the Problem (200 Words)

 

The grocery store in Barasat, West Bengal, is a first-generation business operated-through traditional retail practice. While it serves a loyal customer base, it faces several challenges that hinder its growth and profitability. One of the most significant problems is inefficient inventory management. Without a digital system or structured method to track stock movement, the store frequently experiences overstocking of slow-moving items and understocking of high-demand product spotlight and lost sales opportunities.

The problem is further compounded by the lack of data-driven decision-making. Most procurement and pricing decision are based on the owner’s intuition and past experience rather than on actual sales trends or customer demand data. This results in mismatches between stock and customer preference.

Internal Factors contributing to the problem include the absence of proper keeping, limited technical knowledge, and insufficient use of analytical tools. External factors include increasing competition from nearby retail chain and changing consumer preferences, which require faster adaption and smarter inventory planning.

Together, these issues lead to low profit margins and prevent the business from scaling effectively. Addressing these challenges through business data analysis is crucial for long-term sustainability and growth.

 

 

5.              Problem Solving Approach (400 Words)

 

To address the operational and profitability challenges faced by the grocery store, a structured and data-driven problem-solving approach will be implemented. The methodology involves collecting relevant business data, applying analytical techniques, and recommending actionable solutions tailored to the store’s specified needs and limitations.

1.    Data Collection and Cleaning:

The first step involves gathering historical data related to sales, inventory, procurement, and product categories. This may be obtained through existing notebook, bill or simple registers maintained by the store. The data will then be cleaned and formatted in a usable digital format as spreadsheets, ensuring consistency, completeness and accuracy.

 

2.    Descriptive Analysis:

Basic statistical and summary metrics will be used to understand current inventory levels, fast- and slow-moving production, seasonal sales patterns, and customer buying behaviours. This insight will help identity overstocked items, frequent stockout, and low-margin products.

 

3.    Inventory Optimization:

Implement inventory control techniques such as ABC Analysis and Economic Order Quantity (EOQ) to identify fast-moving, slow-moving, and high-value items. This Helps reduce overstocking and prevent dead stock.

 

4.     Demand Forecasting:

Using time-series data, simple forecasting models like moving averages or exponential smoothing will be used to predict demand for key items. This helps in planning optimal recorder quantities and reduces chances of excess or insufficient stock.

 

5.    Profit Margin Tracking:

Evaluate cost versus selling price across product categories to identify low-margin products. The store can then revise pricing or discontinue unprofitable items.

 

6.    Visualization and Reporting:

Data visualization such as bar charts, trend lines, and pie charts will be created to make the findings more accessible to the store owner. Dashboards in tools like Excel or Google Sheets will be developed to allow ongoing monitoring of stock levels, sales, and profitability.

 

7.    Implementation of a simple Digital Inventory System:

Recommended affordable software or even spreadsheet-based tracking systems to help the store owner better manage stock levels and automate alerts for recorder points.

This approach ensures that problems are solved using practical, data-backed decisions, leading to improved operational efficiency and higher profit margins.

6.              Expected Timeline

 

 

1. Work Breakdown Structure:

 

 

 

2. Gantt chart:

 

 

 

 

 

 

 

 

 

7.  Expected Outcomes

 

·       Gain a clear understating of grocery store’s current operations, workflows, and challenges.

·       Identify overstocked or understocked items through sales and stock data analysis.

·       Suggest efficient inventory management practices to reduce wasted and costs.

·       Understand customer buying patterns to align stock with profitability.

·       Identify best-selling and low-performing products for better shelf management.

·       Equip the store owner with simple analytical tools for regular business evolution.

·       Promote information and faster decision-making.

·       Recommended beginner-friendly digital tools for inventory and billing.

·       Help transition the store towards semi-automated operations without disrupting daily activities.

·       Enable long-term improvement in efficiency and profitability.

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