MAX Fashion Operations Manual - VM Process PDF

OPERATIONS MANUAL VM Doc# MAX/L3/Procedure/VM Version 1.3 Oct 2016 “Restricted – for internal use only” Document Controlled & released by: QMS Department, Max Fashion 77 Tow...

OPERATIONS MANUAL VM Doc# MAX/L3/Procedure/VM Version 1.3 Oct 2016 “Restricted – for internal use only” Document Controlled & released by: QMS Department, Max Fashion 77 Town Centre, Building No. 3, West Wing Yemulur, Off: HAL Airport Road Bangalore – 560037 India Telephone: +91 (80) 41796565 / Fax: +91 (80) 41528350  MAX Fashion Proprietary Statement & Copyright Notice This document is proprietary to MAX Fashion. All ideas and information contained within the Quality System is the intellectual property of MAX. These documents are not for general distribution and are meant for use only by the person (s) they are specifically issued to. No person shall lend these documents or give to anyone outside MAX, including its customers. Copying or unauthorized distribution of these documents, in any form or by any means viz., graphics, electronic or mechanical including photocopying, taping, web distribution or any means of information storage outside of MAX information systems is illegal. This quality system is the property of MAX Fashion. Revision History Ver. Release Authored by Reviewed by Change Description No. Date Harshendra Separated from Marketing 1.0 March 2014 Nayaz Ahmed Maheshwari department 1.1 August 2015 Nayaz Ahmed Team Structure 1.2 June 2016 Nayaz Ahmed Team structure Rangarajan Rajesh Kulkarni  VM budget/expenses/payment Raghu 1.3 Oct 2016 Anandhi approval process Rajagopalan Harsh “Restricted – for internal use only” Page 1 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion TABLE OF CONTENTS 1. SCOPE OF SOP................................................................................................. 3 2. DEFINITIONS AND ACRONYMS........................................................................ 3 3. DISTRIBUTION AND CONTROL OF THIS DOCUMENT........................................ 3 4. FUNCTIONAL OBJECTIVES............................................................................... 3 5. APPLICABLE METRICS..................................................................................... 4 6. TEAM STRUCTURE/ HIERARCHY...................................................................... 5 7. PROCESS INTERACTION.................................................................................. 6 8. INTRODUCTION TO VISUAL MERCHANDISING................................................ 7 9. WORK FLOW PROCESS..................................................................................... 7 A) Training Process................................................................................................................7 B) Staffing and Scheduling................................................................................................7 C) Job/Work Allocation Process.....................................................................................8 D) Operations Process..........................................................................................................8 1. New Store Launch – Visual Merchandising-Process.........................................8 2. Plan o Gram– V M Process...............................................................................................9 3. V M Events/Seasonal/Festival Change-over Process....................................10 4. Promotions – Regional.....................................................................................................10 5. Promotion – HO....................................................................................................................11 6. VM CALENDAR........................................................................................................................11 7. SOP on handling Mannequins - non trade............................................................12 E) Quality Process.................................................................................................................22 F) Continual Improvement..............................................................................................22 G) Corrective And Preventive Action Process.......................................................22 H) Internal Communication Process..........................................................................22 I) Management Review.........................................................................................................22 J) Reports/Records..................................................................................................................22 10. ESCALATION PROCESS.................................................................................. 23 11. LIST OF DOCUMENTS..................................................................................... 23 “Restricted – for internal use only” Page 2 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 1. SCOPE OF SOP This Standard Operating Procedure (SOP) addresses all the requirements of ISO 9001:2008 and gives an overview of all the activities that are carried out at Visual Merchandising. This SOP pertains only to Visual Merchandising and will remain confidential to this area of work 2. DEFINITIONS AND ACRONYMS SOP Standard Operating Procedure ISO International Standardization for Organizations Sr. Mgr Senior Manager VP Vice President AVP Assistant Vice President CPO Chief People Officer 3. DISTRIBUTION AND CONTROL OF THIS DOCUMENT Document Owner – Manager Read Access – All members of the process and Internal Auditors. Write Access – Manager & Systems Audit Team. Revision – By Manager within five days from when the process Changes occur. Review – Once in six months. The latest version of the Operations Manual and its distribution is recorded in the Document Master List and Document Distribution List maintained by the Systems Audit. 4. FUNCTIONAL OBJECTIVES Conceptualization and Ideation  Conceptualize and ideate for the seasonal and thematic launches along with windows for the season based on the buying / season launch calendar  Coordinate with the buying and marketing team to ensure timely submission of visual dockets Planning  Understand the planogram brief across categories  Ensure the development of ideas on the new season, new store and VM changeovers and align all the category VMs  Create implementation processes to execute VM standards at all regions  Decide on the elements and signages as per the category  Ensure the timely preparation and submission of the Planogram booklet  Ensure that the Planogram booklet is shared with the regions  Manage the creation of a styling docket and key highlights for all categories and share the same  Conduct market surveys to know retail trends and draw inspiration on VM standards Implementation  Align with the VM calendar and communicate pan India  Ensure end-to end coordination for product shoots  Ensure mock up set up is done at corporate and regions  Provide multiple adaptations for the window set ups across regions  Review implementation of the Planogram and window dockets across regions  Ensure consistent qualitative feedback is generated from Planogram review  Monitor the Planogram scorecard of regions and take corrective actions  Review the season performance, plan and implement the VM changeover and update the Planogram “Restricted – for internal use only” Page 3 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion  Update and communicate all VM activities through Wooqer and ensure compliance to the same by the team  Ensure timely availability of all collaterals based on scheduled launches New store opening  Coordinate with NSO (Retail) for store elevation and visual elements sign off STR Understanding and tracking  Understand the sell through at the category level and take appropriate actions  Collaborate and liaise with the buying and planning teams to ensure appropriate flow of information between the corporate and regional VM teams Vendor Management  Monitor vendor performance 5. APPLICABLE METRICS SLA Target/Timeline VM Calendar to be published in Wooqer every Quarter 2 weeks in advance Regional festival calendar and elements to be finalized and frozen for the financial year and published in Wooqer 2 weeks before April Seasonal changeover & Planogram review fortnightly every month Change in profiling for wall elevation and floor fixture to be evaluated to suit specific product or category Half yearly Guideline for POG to be reviewed and concerns to be shared Monthly with AM and RM by VM Manager and share MOM to HO; Best Deal offer and HOT buy to be evaluated based on ROS shared by HO VM and RM Mannequin repair and replacement to be done by regional VM from the store operating budget within 15 days from the approval of RM Monthly calendar on VM Store Visit to be published to OPS & HO VM by RVM & VM Exc 5 day in advance of the coming month Collating the mannequin garments and focal point changes and images to be shared by VM executive to the AM and RM Fortnightly to be captured in POG Window images, Focal Point and signage’s images to be shared with HO VM and RM by VM executive and submitted Fortnightly to be captured in POG as part of the report “Restricted – for internal use only” Page 4 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 6. TEAM STRUCTURE/ HIERARCHY Visual Merchandising Team Structure Visual Merchandising SANDEEP NARAIN SENIOR VICE PRESIDENT- OPS/ PLANNING/VM M4-A HARSHENDRA MAHESHWARI ASSISTANT VICE PRESIDENT M3-A ESHWAR CHANDRA REGHU (YTJ) KRISHNA N. MITHUN LAVANYA RAO SR.EXECUTIVE VM VM OPS VM SUPPORT VISUALISER MANAGER MANAGER SENIOR MANAGER A6-2 NSO M1-A M2 (JUN’16) M1-A POG K VISHNUVARDHAN REDDY XAVIER DINUP SAUMYA VERMA VM NSO VM ACTIVATION MANAGER A6-1 ASST. MANAGER M1 (MAY’16) A6-1 WW KHAN WASEEM PRANJUL SACHAN MOHNISH VM VM GRAPHIC DESIGNER MANAGER SENIOR EXECUTIVE SENIOR EXECUTIVE M1 A6-2 A6-2 MW NSO WINDOWS GRAPHICS JOHN JOSEPH S SENIOR EXECUTIVE VM NSO SUJITH KUMAR P ASSISTANT MANAGER A6-2 SENIOR EXECUTIVE A6-1 (APR’16) A6-2 KW SIGNAGE GRAPHICS CONCEPT RAHUL RANJAN (YTJ) AMITA PAI MANAGEMENT VM TRAINEE MANAGER NSO M1 (DEC’16) EW OPERATION GARIMA S FW & Acc. SENIOR EXECUTIVE A6-2 FW E-commerce/Omni Current LFL and M2K Business Robust ROHIT KUMAR KIDS-POG Supporting New Initiatives A6-2 (APR’16) SHAFEEKH (YTJ) SENIOR EXECUTIVE ALL BASICS A6-2 (APR’16) CREATION “Restricted – for internal use only” Page 5 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 7. PROCESS INTERACTION Human Resource  Recruitment - Providing skilled personnel matching the project IT needs  Installation of Design  Employee Relations – Hardware and  Sharing of Mood Confirmation/Appraisals /Attrition Software and boards for season Finance Management, Manpower Mgmt, Troubleshooting campaign Employee Engagement Activities &  Creation / deletion of  Invoices for  Inspiration about Employees’ exit formalities. user ID’s & Email ID’s various services. the collection.  Compensation and Benefits -  System maintenance  CAPEX approval  Details on Trends/ Attendance Tracking and Salary - Addressing all  Provision Key highlight payment, Full & Final payments Technical issues. creation  Providing soft skill training and conducting other workshops. VM Administration Projects Buying QMS  Obtaining hardware /  First cut floor plan,  No. of options,  Guidance in fulfilling software resources light & facade with stories and the QMS  Workspace requirements – VM category detail requirements Stationary and Consumables  Sign off by MRKT &  Highlights for  Documentationa &  Housekeeping VM before the shoot. updation of SOP handover to  MVP management operations  Wooqer id creation Retail Operations  Promotional plan, offers etc Marketing  EOSS and festive offers  Season Concept  New store launch  Shoot concept - Windows  Plan o gram  Product Shoot images & details  Season change  Promotional plan & offers – Consumer & Category  EOSS and festive offers  New store launch “Restricted – for internal use only” Page 6 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion RACI Matrix: Responsible - R; Accountable – A; Consulted – C; Informed - I 8. INTRODUCTION TO VISUAL MERCHANDISING Mission: Max to be the no 1 brand for the contemporary middle class family communicating international fashion and value, facilitating international brand experience across customer touch points through season launches, by enhancing the fashion imagery of Max, through innovative (window / product) displays, styling skills and effective communication; creating an exceptional Retail environment for our customers resulting in business excellence. 9. WORK FLOW PROCESS A) Training Process New Joinees into the Visual Merchandising team are taken through a 1-day induction program by the TT team. This induction covers information about the company, background, locations, presence, businesses, & processes etc. In addition to this the team members are given an orientation program at the team level by their immediate supervisor about the role, the processes involved in Visual Merchandising department, challenges, learning’s etc. All the New Joinees in the region joining in M1 & above grade should undergo induction for three days in the Corporate Office as well to understand the process, practice and documentation. B) Staffing and Scheduling Staffing in the Visual Merchandising department is done on need basis. Every region has Regional Visual Merchandising manager reporting into HOD Visual Merchandising. Every three/ four stores have one VM executive and every spotlight/ critical Wannabe stores to have a designated VM Champ. “Restricted – for internal use only” Page 7 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion C) Job/Work Allocation Process Job is assigned to an individual based on the competency and the same is capture in individual JD. D) Operations Process 1. New Store Launch – Visual Merchandising-Process 1. Fixture elevation plan to be received from Projects based on the finalized fixture profiling and guidelines given by VM. 90 days before store opening. 2. Column & light layout along with master sheet capacity to be received. Façade drawings with external logo placement's if any to be included in the folder 90 days before the store opening. 3. NSO VM to revert to store design team for specific requirements and changes if applicable. 85 days before store opening 4. Regional VM to provide final Mannequin & props quantity as per the Wall elevation and manual before 70 days of store launch. The same is shared with finance for processing the orders with required approvals. 5. Regional VM manager to share the first cut plan 60 days before the season launch. 6. Regional VM to visit the site 55 days before to ensure all the elements like Podiums, required Laminations on columns, wall treatments is done. 7. A detailed VM plan for the store to be submitted along with the Visual plan 50 days before store opening. This plan should include Window plan, Hotspot ideation, Product display ideation and final Plan-o-gram. The plan to be closed within 45 days with the concurrence of VM designer from HO. 8. Sign-off with Marketing and Operations head on Visual / Window Plan and communication to RO, 45 days before the store launch. 9. Final requirement of In-store signage and POS accessories will be finalized between Regional VM and Manager NSO VM 30 days before and placement of order will be processed. 10. A competitive Estimate for the same to be submitted by Regional VM for approvals. Post necessary approvals from Manager VM and Finance Head, the order will be processed 25 days before the store launch. 11. At least 20 days before store opening the PO should be raised for purchasing of POS and Signage accessories. 12. Placement of Visuals and Mirrors to be finalized at least 20 days before with the concurrence between RVM & RM in case of disagreement in the actual plan. 13. To receive all the required mannequins, POS accessories and VM elements 8 days before. Projects to provide space for the same. 14. Handover from Projects dept to be taken by Regional VM manager along with RM/AMs 7 days before. 15. 7 days before store opening fixture profiling to be checked for Plan-o-gram Implementation. 16. 6 days before store opening installation of all the prints and visuals to be completed along with the product display. 17. 2 days before store opening final tweaking of Product display and Plan-o-gram to be done. 18. All VMs to be out from the store after doing a White Glove Checklist. “Restricted – for internal use only” Page 8 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 2. Season Launch 2.1 Plan o Gram – V M Process 1. Season’s Calendar on key categories/ trend and highlight to be received from the Buying Head for all the categories 75 days before the season launch. 2. Collection boards with images of merchandise along with the launch dates, fixture plan and product signages are received for the collections 75days before season launch. 3. After having a detailed understanding of the collections and categories, first round meeting between VM Team (VM head, VM designers) and Buyers for clarifications and finalizing on the collections and communication – 65 days before season launch. 4. Details on number of shot in each category, layout and special product highlight to be given to the Brand Manager 60 days before season launch. 5. Final files and Images to be updated based on the final buy from all category Buyers at least 50 days before season launch 6. Key collection/ highlight details to be given 40 days before the season launch to the Training Team & Digital Marketing team. Training module to be created for the same. RVM & RTT to train the front end within 2 weeks of season launch. 7. VM Team will work on the Detailed Elevation, fixture Profiling and communication with pictorial ideation for all the categories provided all the required inputs. This Task to be completed 25 days before season launch. 8. Final Docket Presentation to the Operation and Buying Head 20 days before season launch. 9. Release of the Final Plan-o-gram guideline 14 days before the Season Launch in-store. 10. Dockets will be uploaded on wooqer and assigned to RM, AM, SM, ASM, DM and VM Team with set of questions. 11. Two pilot store in the region to be planned in concurrence with the Planning Manager for 80:20 and 60:40 mix. Post finalization of date and stock, regional VM team’s travel to be planned. The mock store implementation should happen 14 days before the season launch. 12. Each region to nominate 1 store for the pilot, Regional VM to ensure to implement the POG in the store along with the VM & Ops team. 13. RVM to share the plan for POG implementation in the region in concurrence with RM & RP with VM Head. 14. The dockets to be printed and sent to the Regional VM in a book format, the same needs to be shared with Store Manager. Store Manager is responsible for the maintenance and upkeep of the docket in store. 15. VM team to check on the dockets availability in the store in their visit to stores. 16. For a healthy POG implementation 80% Non Basic stock should be present on the floor. 17. Photographs of the Final display to be uploaded for the Plan-o-gram review every fortnight as per the calendar. 18. Maintenance of the Plan-o-gram responsibility lays with the SM’s, Category DMs and VM Executives. 19. Regular Updates to HO on the changes or amendment regarding Plan-o-gram is must and such changes is not appreciated without prior approval from HO VM team. 2.2 Windows 1. Marketing to present the Final Concept Note for Season Launch 60 days prior to launch. “Restricted – for internal use only” Page 9 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 2. VM to discuss first cut window plan with Marketing, Buying & Ops Head 45 days prior to launch in case shoot is required to be done in a special manner to suit the window requirement. 3. Mock Window to be created and approval taken from Mktg, Buying & Ops head 15 days prior to launch. 2.3 In-store Signage 1. All floor fixtures to be supported with Price Communication/Signage with max Rs.200 for slab. 2. Product shoot, if required to be decided upon 60 prior to launch & Information hand-over to be done from VM to Marketing. 3. Final Photos / images to be handed over to VM by Marketing – 25 days prior to launch. (Low Res image to be received 30 days before the season launch). 3. Change over process 3.1 V M Events, promotions & Marketing Initiative– Women’s Day 1. Quarterly detailed brief on the Event planned for each month with the objective to be received from Marketing before the quarter starts. Critical event details to be shared 30 days before the actual date of the event. 2. First cut options and ideas to be discussed with marketing team 20 days before the event and shared with Operation Head 15 days. 3. After finalizing on a concept or the ideation, VM team will process the finalized concept to make the artworks for the same (for in-store POS & Window). 4. Final Docket Rollout to the Regional VMs with all the instruction and technical specification for implementation. Min 10 days before the event. 5. All the artwork uploaded thru Web transfer. 6. Estimates and competitive quotes for the implementation will be sent across to HO 6 days before the implementation and PO will be raised based on the final Estimates. 7. Implementation Pictures to be received from all the region 2nd day of the Event. 3.2 Festive / Season changeover 1. As covered in 2.2 4. Festivals – Regional 1. Yearly regional festival calendar to be submitted by the Regional VM in concurrence with the Regional Manager to the HO VM team. 2. Budgets on windows will be signed for the respective festival. 3. Marketing executive will share the CBA analysis with respective AM/RM for approval. 4. All the operational expense approval to be lead by the respective AM with the Finance team by 25th of the earlier month. 5. Mktg will need a lead time of seven days to implement the same from the approval of finance and operations. Post approval of the same, end to end creation and execution to be done by the Regional Marketing Team. Cost to be absorbed in the Marketing Budget. (To be discussed and concurred). “Restricted – for internal use only” Page 10 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 6. Any input on the promotion in the MBR will be implemented in the next month plan to avoid any last moment changes. 5. Promotion – HO 1. Brand manager communication to share the QUARTERLY marketing plan with the Mktg head, brand activation manager, RMM and VM head before 45 days in advance from the Quarter start date. 2. The HO Marketing team to share the concept note 60 days in advance with the regional Marketing team and HO/ Regional VM to avoid clash of activities. 3. HO Marketing and HO VM to engage in a discussion on actions and execution for the Promotion. 4. Post approval of the same, end to end creation and execution to be done by the Regional Marketing Team. Cost to be absorbed in the Marketing Budget. (To be discussed and concurred). 6. VM CALENDAR The below mentioned process to be repeated every season: Sr No Description 1 VM Budgets to be finalized and submitted 2 Concept Trends Presentation by Design 3 Season Concept Note Presentation by Marketing 4 VM HO teams to research VM Trends 5 Concept VM to share the Window Look 6 POG Handover from Buying to VM 7 Cat VM to release Signage Shoot requirement to Marketing 8 Cat VM to release Key Highlight to TT & Marketing 9 Marketing to share Shoot Images with VM 10 Final signoff from SMT on Window / Signage etc. 11 HO VM to release Seasonal Dockets & Guidelines 12 Confirmation with Planning on Stores for Mock Store 13 HO to action Mock Store Setup 14 All Documents to be shared on WOOQER 15 Regional Implementation plan to be shared by RVM to HO 16 within 2 days of implementation Windows Pics to be checked by RVM and shared with HO 17 POG Review to begin 18 Region to submit all budget provisions by 25th of every month 19 Bill submission “Restricted – for internal use only” Page 11 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 7. SOP on handling Mannequins - non trade Shifting of mannequins from one store to another: 1. ASSET TRANSFER FORM to be initiated by the RVM in consultation with HO VM, code & qty to be duly mentioned. 2. Approval from RM & RCM on ATF. Post that, it has to be shared with Finance Manager (Capex). 3. STN has to be done by the store team. Post that only the mannequin movement will be allowed. Gate pass is mandatory and has to be scanned and sent to HO for the closure by the store manager. Shifting of mannequins from store to the warehouse: 1. ATF to be initiated by the RVM in consultation with HO VM, code, qty & details to be duly mentioned. 2. Approval from RM & RCM on ATF. Post that, it has to be shared with HO VM & Finance Manager (Capex) with details as qty for repair and beyond repair. 3. STN has to be done by the store team. Post that only the mannequin movement will be allowed to the warehouse. 4. Warehouse manager to document all the details. Gate pass is mandatory and has to be scanned and sent to HO for the closure by the Warehouse manager. 5. Receiving Location to confirm by mail and send the acknowledged copy of the STN to the RCM of the region under cc to Finance Manager (Capex) at HO. 6. RCM to send the ATF and acknowledged copy of receipt for recording the transfer in FA module. Scrapping of the mannequins: 1. RVM to identify & initiate the ATF for irreparable mannequins and move them to the warehouse. The decision to scrap the mannequin should be decided after cost benefit analysis i.e. NBV of the Asset Vs Cost of repair and understand the longetivity (or service period) of the repaired asset. If the Repair cost is not beneficial, scrapping option to be pursued further. 2. STN, gate pass & other processes to be followed by the store team and facilitate the smooth transfer to the warehouse. 3. RVM & RCM should jointly visit the location (where the Non repairable mannequins are lying) and inspect the identified items. Should prepare a joint certification with the photographs attached and prepare SCRAP PROPOSAL NOTE with the Store location from where the damaged mannequin was received. “Restricted – for internal use only” Page 12 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 4. 3 quotes from the vendor to be submitted, highest quote to be taken. (RVM / RCM / RDC Manager to facilitate or support the process) 5. RM & RCM to approve the same and then scarp the mannequins. 6. Post scrapping & sale, RVM and RCM should prepare and send the Asset Disposal Form with the Style Number of the Mannequin, Store which originally belonged to or received from, for recording the disposal and write off the NBV (Net Book Value) as "Additional Depreciation of the specific Store Cost centre' Repair of the mannequins: 1. RVM to identify & initiate the ATF for mannequins to be repaired. (In my opinion, if the identified mannequin is to be transferred to WH for repair, there is NO need for ATF. Rather a RGP - Returnable Gate Pass and the STN will suffice). 2. RVM to take quotes from 3 vendors and only approved and authorized vendor to do the repair. Estimate cost of repair to be shared and be approved by Sr. Manager VM at Corporate Office. 3. Mannequins to be shipped to the warehouse or space to be identified within the store area for the repair work. 4. STN, gate pass & other processes to be followed by the store team and facilitate the smooth transfer to the warehouse if applicable. 5. The cost centre for mannequin repair expense will be under “Repair & Maintenance”. The same needs to be provided and budgeted by the RM. 6. RM & RCM to approve the expense before proceeding with the repair of the mannequins. 1. VM BUDGET/EXPENSES/PAYMENTAPPROVAL PROCESS 1. Monthly Budget release: “Restricted – for internal use only” Page 13 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion BY HO VM TO HO FIN Draft Monthly Final Approved Budget Plan Monthly Final Approved budget with Monthly codes Budget BY REG VM calender BY HO FIN TO HO VM TO REG  The Monthly budget plan from MKT to be received by HO VM on or before 20th of every month or next working day incase of holiday on 20 th.  HO VM will send the draft budget plan clubbing both VM own plan as well as VM activity towards MKT plan on or before 21st of every month.  REG VM will rework on the budget and send to HO VM on or before 23rd of every month or next working day in case of holiday on 23rd.  HO VM will send the final concluded budget to HO FIN on or before 25 th of every month or next working day in case of holiday on 25th.  HO FIN will send the budget to REG with budget codes on or before 27 th of every month or next working day in case of holiday on 27th. 2.Monthly Budget Code release by Finance team:  The monthly budgets to be released by HO FIN with a proper code for each line of activity, wherein the same has to be incorporated in the description column as given in the monthly budget sheet.  The budget code is combination of Region Name/Store Code/Month/Activity with number and its sequence. The Description provided in the narration to be captured in the Requisition description without any change. If it is for multiple store, the store name can be changed and typed as multiple store with number of stores mentioned in the bracket.  Incase if the activity is not executed as per the budget plan dates, the actual activity start date to be amended in the description accordingly.  Once the budget released by HO FIN, BEA will be prepared and signed by AVP VM as per the attached format as Annexure-1. 3.Requisition Creation: ESTIMATES  REG VM / HO VM team to obtain a valid estimate from vendor for every planned activity. The estimate should fulfill the following conditions.  All the final estimate to be in the letter head of the vendor duly sealed/signed by vendor.  The estimates will be valid if only it contains Estimate No. Date, basic cost & relevant tax bifurcation / Payment terms and other required terms and conditions.  In case of new vendor other than empaneled vendor, approval to be obtained from AVP VM and the rates should be in line with approved rate card. Also for new vendor 2 comparative quotes in additional to the final negotiated estimate with justification remarks on negotiation. Incase if the new finalize quote exceeds the rates above the rate card then special approval to be obtained.  The estimate must contain the name of the activity.  Finalized estimate to be handed over to REG COM team of the relevant region as per the payment Gantt chart attached as Annexure 2 of the process note.  The estimates obtained from vendor to be utilized within one month from the date of estimate. “Restricted – for internal use only” Page 14 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion Purchase Requisition to be raised and approved in the system before any activity starts as per the payment Gantt Chart attached as Annexure 2 of the process note.  Requisition process in Apps has to be generated for all expenses Regardless of any value or activity except petty cash expenses routed through region.  On receipt of the approved estimate from REG VM /HO VM team, REG COM / HO FIN Team to raise the requisition in Oracle Applications with an automated system generated Requisition Number.  REG COM / HO FIN will generate the requisition in the apps, by selecting the correct item code, Product Code, Cost Centre, GL code, Budget Code as per the budget released from HO. (Details of PO Item code master along with the GL code attached in Annexure 3.  During creation of PR, the scanned copy of Estimates / PI to be attached in the APPS. The user manual attached as Annexure 4.  PR Creation responsibility to be followed as per attached SOA Annexure 5.  Once the PR been approved RCE should update in the attached excel Annexure 6 along with the supported scan copies like estimates / PI / term sheet / other proofs and send for PO request to HO.  PR upload template has been devised by IT which should be used for multiple cost center as per Annexure 4. 4.Requisition Approvals:  PR approval levels to be followed as per attached SOA Annexure 5.  Purchase Requisition to be approved in the system before any activity starts.  Timelines for PR approval to be strictly followed as per the payment Gantt chart attached as Annexure 2 of the process note  Any PR remains “In Process” without approval at any levels beyond 7 days a remainder notification will go the respective user ID automatically system triggered.  Any PR remain incomplete (Unapproved PR in Apps) status without approval will be force closed in system beyond 15 days from the date of PR. 5.PO Creation & Approvals: “Restricted – for internal use only” Page 15 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion BY: REG VM PO Conversion at TO:VENDOR HO and Issuance of Approved PO to Purchase order to vendor before REG VM start of activity BY HO FIN TO REG VM  PO creation is required for any expenses regardless the value in the system before any activity starts as per the payment Gantt Chart attached as Annexure 2 of the process note.  PO approval levels to be followed as per attached SOA Annexure 5.  Purchase Order to be approved in the system before any activity started by vendor.  Timelines for PO approval to be strictly followed as per the payment Gantt chart attached as Annexure 2 of the process note.  PO issuance to vendor is automated. Once PO approved it will automatically be received by vendor in his registered Email Id with copy to respective REG VM Email ID & PO initiator Email ID.  Any PO remains “In Process/Incomplete” without approval at any levels beyond 7 days a remainder notification will go the respective user ID to whom it is pending as a system trigger.  The “Need by Date” to be captured as mandatory. Every “Need by date” to be capped as below:  For all Expenses: 60 days from the date of PO date 1. Bills Submission:(With effect from Nov’16) BY: VENDOR Post Completion of TO:HO FIN activity the relevant proofs & supporting to Vendor has to be handed over to generate invoice & vendor consolidate all relevant supporting & sent to HO FIN for payment BY HO/REG VM TO VENDOR  Post completion of activity HO/REG VM team to co-ordinate with vendor & handover the PR printout along with the relevant proofs / Delivery challan / photographs / CD’s / MOU / Term sheets / agreements & any other supporting.  Timeline to be strictly followed as per the payment Gantt chart attached as Annexure 2 of the process note.  Vendor to co-ordinate with REG VM team / HO for proper approval / supportings and checking of invoice as per the Invoice check list attached as Annexure -7. “Restricted – for internal use only” Page 16 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion  In case of window / any instore activity done by vendor, Work Completion Certificate signed by relevant store manager / store representative as well as REG VM team as per the format attached as Annexure 8.  Invoice along with the necessary / relevant supporting to be sent to HO FIN by courier to the below addressed and send the mail intimation with scan copies of documents to HO FIN Email ID’s and respective REG VM Email ID’s as mentioned in Annexure 9. Ms. Gayathri Sundar / Mr. K.Kirubakaran Finance Department Lifestyle International Pvt Ltd. – (Max Retail Division) 77 ‘ Town Centre, Building # 3, West Wing, 6th Floor, Yemalur, Off Old Airport Road, Bangalore – 560 037 Tel: (+91) 80 4179 6565 The existing process of routing the bills from REG to HO will remain till 31st Oct 2016 as vendor orientation will be done during the duration.  The timelines for Invoice generation / supporting co-ordination / couriering to HO to be strictly followed as per the payment Gantt chart attached as Annexure 2 of the process note. 7. Bills Acknowledgement:  Invoices received at HO will be acknowledged with a reply mail to vendor as per timelines mentioned in payment Gantt chart attached as Annexure 2 of the process note.  Once the courier is received HO FIN will send a mail communication marking to vendor as well REG COM / VM Team acknowledging the receipt along with invoice details will be given as per timelines mentioned in payment Gantt chart attached as Annexure 2 of the process note. 8. Bills Processing:  The bills which are received will be considered for processing next day and below steps to be followed by the Processing Team:  Check of Invoice and its supporting.  Query and clarification addressing.  PO Value checking & relevant amendments to be made if necessary.  Submission for Internal validation by Line Manager.  Preparation of GRN.  Routing of bills for signatures as per SOA.  Submission of bills to GA. Timelines for all the above steps to be followed mentioned in payment Gantt chart attached as Annexure 2 of the process note. PO Amendments: The PO amendments will be done in major for the below reasons  GL / Cost Centre / Product Code change.  Invoice value is lower than PO value  Invoice value is higher than PO value. “Restricted – for internal use only” Page 17 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion  Tax implications. For any amendment done in PO for all above categories the reason for the amendment has to be mentioned in the note column & forward to relevant hierarchy as per SOA. Any amendments done in PO a system generated auto mail will go to vendors registered Email Id with copy to respective REG VM ID & PO initiator ID. PO Tolerance Limit: The difference in value between PO & final invoice cannot exceed more than 12 % than the final approved PO value. PO Cancellations: The PO in system will remain cancelled by doing force closure for below reasons  If it remains “Incomplete” or “In Process” status beyond 15 days from the date of PO or last approved hierarchy.  If the PO ageing is beyond 90 days from the “Need by Date” Special Approval Requests: The Special Approval requests to be obtained as per attached format Annexure 10 from AVP VM & Finance HOD for the below deviations.  Non Budgeted Expenditure.  Expenses not in provision  PO issued date after Invoice date.  GRN made after 60 days from the date of Invoice.  Any New vendor with higher rates than the existing rate card due to business call.  PO amended for any higher value, if greater than the tolerance limit at 12%.  If DC date is prior to PR date.  Any payment pertains to 60 days above ageing.  Invoices related to PO’s cancelled / force closed.  Other deviations due to failure of following any of the points covered in this SOP. 9.Payment Process & acknowledgement:  The bills to be submitted to GA & timeline for GA bill processing are as per the payment Gantt chart attached as Annexure 2 of the process note.  Payment information in form of payment advice will be automatically received by vendor in his registered Email Id with copy to respective REG VM Email Id.  Guideline to Group Accounts, o Offset / Vinyl will be processed with rate card agreement – Empaneled vendors. o Other expenses will be processed with estimate upto 2 lakhs. If the expenses exceeds above Rs 2 lakhs has to be processed with Agreement / Rate Card / MOU / Term Sheet. o Any new vendor other than Agreement / Rate Card / MOU / Term Sheet will be accepted with two comparative quotes as well as justification for selection of vendor. “Restricted – for internal use only” Page 18 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 10. Pre-Payments / Advance Payments:  In case of any advance payment required, request to be given to HO FIN by mail along with the necessary supporting like proforma invoice with terms and conditions/MOU/term sheet/Agreement etc., and the details of the activity.  HO FIN team will raise PO and prepare a prepayment form as per attached format Annexure 11 and follow the approval process.  All the advance payments should be closed within 30 days from the “Need by Date” mentioned in the pre-payment form/PO.  All the pre-payment limits are as per the agreement/term sheet/MOU/PI terms mutually agreed with the vendor. 11.Advance Cash Payments:  All the cash advance payments are restricted to Rs 5000/-.  For any cash advance request “I owe you” to be prepared.  All the cash advance need to be settled within 48 hours from the date of “I owe you” as per petty cash SOP. 12.Petty Cash Debits:  All the petty cash are restricted to Rs 5000/- only  The petty cash payments related to VM has to be tracked on monthly basis by HO FIN team. The dump will be shared on monthly basis. The VM related expenses in the dump to be segregated and AVP VM approval to be taken in the same every month which will be counter-signed by MGR FIN. 13.Provision:  Monthly provisions will be provided as per the open PO’s as of the YTD availability in system.  All the open provision to be closed before 60 days. Beyond 60 days requires approval from AVP VM / HOD FIN.  Any budget which has not been spent for the particular month due to reschedule of the relevant activity can be carry forwarded for next two succeeding months. This provision will be provided only by HO with a signoff note from relevant teams, AVP VM & HOD FIN. 14.Concall on provision:  Concall will be conducted with REG VM along with REG COM team between 10 th to 15th of every month to discuss on the status of bills and commitment for sending the bills to HO. It is responsibility of REG VM and REG COM to follow and insist the vendor for sending the bills to HO as per the timelines agreed in concall.  Any provision to be knocked off due to cancellation of activity or drop of activity or any other valid reason to be intimated at time of concall itself.  Duplication of provision due repeated PO created for activity if any to be intimated in concall for knocking of the same.  For any kind of knock off as above a proper mail communication justifying the valid reason to be provided for cancelling the PO and reversing the provision.  Any expenses which is not provisioned due to knocked off in the previous concall will be processed with fresh PR/PO only with special approval. 15.Rate Card:  Vendor Rate card has been finalised for VM-Vinyl & Flex printing/offset and the signed rate cards been shared. All the specified activities to be conducted with empanelled vendors only. All the rates mentioned in the rate card remains same until or otherwise “Restricted – for internal use only” Page 19 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion intimated. The term of the vendor rate card is initially finalized as six months i.e., (Oct’16 to Dec’16). This will be renewed after six months with proper validation and review. 16. Vendor Registration Portal:  Any new vendor registration requires two additional comparative quotes other than selected quote, along with justification for selecting the vendor.  Vendor code creation has been automated through Portal system wherein the Vendor will directly upload the documents in system.  The User manual and flow of raising and approval in portal will be as per the Annexure 12 & Annexure 12 A 17.Balance Confirmation/No due Certificate:  Balance confirmation / No due certificate to be obtained as per the attached format Annexure 13 / Annexure 14 half yearly i.e., for the period Jan to Jun on or before 31st Aug Jul to Dec on or before last working day of Feb Jan to Jun: o Letters to vendors with outstanding information has to go on or before 20 th Jul. o Vendors reply can be obtained by scan copy through mail. o All confirmation letters / No due certificate has to be received before 15th Aug and reconciliation to be complete & sign off to be taken on or before 31 st Aug. Jul to Dec: o Letters to vendors with outstanding information has to go on or before 20 th JAN. o Vendors reply can be obtained by scan copy through mail. o All the confirmation letters / No due certificate has to be received before 15 th Feb and reconciliation to be complete & sign off to be taken on or before last working day of Feb. 18. Financial Budget Release:  Financial Budget for VM will be done year on year based on the sales plan.  The draft request will be initiated during Feb by sharing the first cut sales.  There is a standard excel format for working activity wise / Month wise / GL wise Store wise inputs as attached as Annexure 15.  The basic working for next financial year plan to initiate by Jan of every sharing actual data of current as of Dec.  The tentative VM plan to be discussed with function HOD and VM team with a tentative sales plan.  Overall VM expenses percentage & department wise contribution / Budget share to be tentatively derived, post first cut sales receipt the first cut VM expenses budget to be derived.  The sales will have several revision and accordingly as per the fixed percentage to sales the VM expenses budget will vary.  All HO driven expenses will be shared to both existing & new stores and it is allowed to utilize even if any new store remains unopened as per plan.  All new stores inaugural expenses budgeted will get shifted or postponed as per the change in the store opening plan. “Restricted – for internal use only” Page 20 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion  The Budget will be uploaded in Hyperion post freezing of sales budget as per the timelines requested.  Post signoff of financial budget, every month HO FIN will work out on adjusted budget and in consent with the VM team / AVP VM and share to HO MIS team.  The adjusted budget will be considered in both store P&L as well as regular MIS. 19. Monthly Review meeting:  Monthly Review Meeting will be conducted every 1st week of succeeding month.  The agenda of the monthly review meeting majorly covers o Current status of Budget VS Actuals. o Outstanding status. o Way forward for next quarter. o Rolling forecast discussion. o SOP Deviations. o Query addressing. o Adjusted Budget discussion for succeeding month. o Other business supports discussion.  Post meeting the minutes of meeting circulated by MGR FIN to all stake holders. 20.SOP Tracker/MIS:  In view to have controls on SOP deviations and regular monitoring of the same, frequent SOP trackers on weekly, Monthly, Fortnightly will be circulated. The content of reports as attached as Annexure 16 / Annexure 17 / Annexure 18 SOP are follows  Weekly PR-PO MIS the covers the status of approvals and other additional PR-PO supporting process (Annexure 16).  Fortnight PO_Inv MIS covers the entire Invoice Receipt vs Invoice Processed vs Invoice submission to GA vs Payment to Vendor status. (Annexure 17).  Monthly payment Gantt chart tracker denoting the SOP deviations at each level (Annexure 18).  Overall the regular month end MIS will be circulated before start of MRM (Annexure 19). Other than above productivity tracker will be maintained on or before 10th of every month.  No of PR / POs processed (day wise / employee wise) with Value.  No of PR / POs amended (day wise / employee wise) with Value.  No of GRNs processed (day wise / employee wise) with Value.  No of Invoices verified/validated and handed over to Group Accounts (day wise / employee wise) with Value. Details of MIS report(s) has prepared – Monthly Tracker with Name of the report, MIS Preparer, Reviewer and Date of Circulation). “Restricted – for internal use only” Page 21 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion E) Quality Process VM head Feedback on the Adherence of the Planogram from the Retail team for new store as well as existing stores ROS story wise in various department Assess the fulfillment of the objective and Budget vs Actual spends take necessary action wherever applicable. F) Continual Improvement Learning from past activities i.e. What went well and areas of further development across discipline to be shared in common forum to learn and implement the same G) Corrective And Preventive Action Process To take corrective action when planned results are not achieved (KPI not met). Reason for the same and What is the analysis carried out. What are the preventive actions in place/ how will it be taken.. H) Internal Communication Process Review with the team happens as per the below grid I) Management Review The review happens every month with the Operations Head and other department Heads. The Visual Merchandising-Head presents the Visual Merchandising plan and collects feedback from the management and shares the same with the direct reports. J) Reports/Records Report / Sl Owner / Record Retention Disposal Record Name Frequency No. Custodian Type Period Methodology 1. VM calendar Quarterly Wooqer For 2 years - New store During new 2. launch VM Krishna Wooqer For 1 years - store launch gant chart Regional VM 3. store visit Monthly Regional VM Mail Monthly - calendar Regional 4. Festival Yearly Garima Wooqer For 2 years - Calendar 5. POG Dockets Seasonal Wooqer For 2 years 6. Key Highlights Seasonal Wooqer For 2 years Window 7. Seasonal Wooqer For 1 year Concepts “Restricted – for internal use only” Page 22 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”  MAX Fashion 10. ESCALATION PROCESS Visual Merchandising Contact Level Contact Person Designation Email ID No. Level 1 Regional VM Level 2 Level Harshendra [email protected] 3 Maheshwari Head VM n 11. LIST OF DOCUMENTS DOCUMENT LIST – MRKT & VM ISSUE / DOCUMENT NO. / DOCUMENT NAME / VERSION SL NO OWNER RELEASE ID DESCRIPTION NO. DATE 1 Fixture Manual Projects 2 VM Manual Garima Kumar 3 Signage Diction Krishna 4 New Fixture Identity Nandagopal Props – Do’s & Don’ts & 5 Placement Manual 6 Mannequin Docket Wall elevation – Low & High 7 Ceiling How to “Click” Fixture / 8 Windows Harshendra 9 Window – standards Garima Kumar 10 Mannequin Grouping Garima Kumar 11 Basic Merchandising rules 12 Hanger Manual “Restricted – for internal use only” Page 23 of 24 Doc# MAX/L3/Procedure/VM/Ver 1.3 “Un-controlled if printed”