MANAGERIA L INFORMATI ON SYSTEM IN CAFÉ COFFEE DAY [Type the document subtitle] SUBMITTED BY: GULATI KUMAR I SRIVASTAVA PAL CALLY SHANKER CHANDANI 1/27/2010
ANKIT AMIT DEVESHR DIPISH HARI HEMLATA
HISTORY OF CAFÉ COFFEE DAY
Café Coffee Day is a division of India's largest coffee conglomerate,Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), popularly known as Coffee Day, A Rs. 750 crore ISO 9002 certified company. Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters with clients across USA, Europe & Japan. With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its business spanning the entire value chain of coffee consumption in India. Its different divisions include: Coffee Day Fresh n Ground (which owns 400 Coffee bean and powder retail outlets), Coffee Day Xpress (which owns 895 Coffee Day Kiosk), Coffee Day Take away (which owns 12000 Vending Machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division. Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee café culture in neighboring international markets grew, the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen. Recognizing the potential that lay ahead on the horizon, Café Coffee Day embarked on a dynamic journey to become a large organized retail café chain with a distinct brand identity of its own. From a handful of cafés in six cites in the first 5 years, CCD has become India’s largest and premier retail chain of cafes ca fes with 858 cafes in 134 cities around the country. “Enthused by the success of offering a world-class coffee experience, CCD has
opened a Café in Vienna, Austria and is planning to open other Cafes in the Middle East, Eastern Europe, Eurasia, Egypt and a nd South East Asia in the coming months.”
1996 2001, owned 1st Caféain
Amalgamated bean coffee
2006 Launched flavoured
2008, CCD brew a major equity deal with JP Morgan
2009 and near future planned to expand in Middle East
LINE OF COMMAND IN CAFÉ COFFEE DAY
CHAIRMAN DIRECTOR HEAD OPERATIONS TERRITOR MANAGER
REGIONAL MANAGER CITY MANAGER AREA INCHARGE CAFÉ MANAGER
ASTT.MANAGER L1 ASTT.MANAGER L2 OPERATIONS TRAINEE TRAINEE TRAINEE MEMBER
TRAINEE CAFÉ MANAGER
DEPARTMENTS IN CAFÉ COFFEE DAY There are 11 departments in Café Coffee Day making sure the proper functioning of coffee house These depts are understated-
BUSINESS DEVELOPMENT: The team decides upon a suitable site where the cafes canbe set up. They identify, shortlist, and finalize a site bynegotiating with property owners. A significant effort is involved in getting legal clearences and statutorycompliances. After all formalities are completed, the site ishanded over to theprojects team.
PROJECTS: The team comprises of some of the best designers whoensure that the coffee culture is spread across the countrythrough beautiful outlets. All new cafes are a re built with astandardized design and the look of the café is in sync withthe brand positioning. They aim to build cafes in the shortestpossible time, at the least possible costs to capital outlay. Arecent innovation is the Lounge cafes which are set up in Delhi, Bangalore, Hyderabad and Kolkata.
OPERATIONS: This team achieves their sales objectives and is responsiblefor the daily running of their cafes in a profitable manner.Customer interaction is very important for this team, as theyare the ones who interface with the customer and providethem with a satisfactory service and product experience.Café managers train all their employees who are involved inday-to-day operations.The café staff is their brand ambassador. The brand image ofcafé coffee day is and will be reflected through them by theway they dress, behave and carry themselves , both withinthe organization and outside. They are the faceof thecompany since they will be the first point of interaction withthe customer.
FOOD AND BEVERAGES {F & B}: CCD are a lot more than coffee. Apart from serving the bestcoffee in the country they also serve a wide assortment ofsavories and desserts. The various coffee concoctions thatthey serve are the creations of their F&B team. They alsoensure the highest level of hygiene and food quality. Theyimpart training to the team on the preparation of the best quality of coffees and food at their cafes. The F&B teamsources and manages vendors who supply food to the cafes.
MARKETING: The marketing team is responsible for the brand positioningand all a ll brand building activities that result in increased sales and greater visibility. They are also responsible for the various sales promotion activities and tie-ups. This teamdesigns and manages the merchandise category, which is displayed and sold at their cafes. They constantly trackloyalty programs and promotions at the cafes to helpminimize sales. The café citizen program is a uniquecustomer loyalty tool which helps us to create new customer and retain existing ones by rewarding them with handsomepoints which can be earned and redeemed at the cafes.
HUMAN RESOURCES AND TRAINING : The HR team deals with all matters pertaining to peoplewithin their team. They are responsible for recruitment andselection at all a ll levels from team members to themanagement staff. They are responsible for employeesalaries, career development and councelling. Constantefforts are made for employee upgradation in terms o improving skills and job satisfaction to meet the aspirations of all employees.
ACCOUNTS: They look after the day to day accounting and a nd financialactivities and also provide them with the financial reports which will help them, find out the profitability of the outlet help them reduce the costs and ensure compliance andfiscal discipline at the cafes.
SUPPLY CHAIN MANAGEMENT: This is the team which ensures that all stock keeping units ofitems used in the café are received at stores from vendors and distributed to the cafes on time. They receive storeorders and maintain the inventory of stock keping units sothat cafes do not run out of critical supplies at any point.
MANAGEMENT INFORMATION SYSTEM DEPARTMENT : Their function is mainly to update the point of sale software and the café website and provide MIS reports to aid management. They also look into any other systematical functioning, repairs, and replacements at cafes and offices. The café staff is trained on the billing software by this team. Their new initiative is the phased roll – out of the Wi Fi point of sales billing system. This department looks after end to end Information and Technology solutions in order to ensure proper functioning of Café Coffee Day. These functions are :
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Billing Process Transfer in Transfer out Flow of information. Inventory Control. Feedback Analysis Competitors Strategy Location Planning
AUDIT DEPARTMENT: In this department they have expert team of Auditors who have got competency in Finance and Accounts and they frequently visit to different locations to check the accounts and to maintain the transparency. They also look after whether whether to venture into into a new outlet by making a Financial Assessment and checking its viability.
LOGISTICS DEPARTMENT: This department is the backbone of Café Coffee Day.The menu of CCD contains many bakery items which which are perishable and to be provided on the day so the transportation task is very important and should be flexible.
NEED OF MIS IN CAFÉ COFFEE DAY : Café Coffee Day has a great success story s tory from the single store in Bangalore to approx 5000 outlets. With such an exponential growth they gradually started to feel the need of an an integrated system to look after supply chain management because there was no proper medium of coordination between the suppliers and the outlet managers ,due to this the flow of information at times the information was
misinterpreted and not correlated this all happened because of no customer database was maintained and outlet manager could not recall the need of customer. There was not a proper inventory control, some outlets receive receive excess amount of inventory so the cost is increased and they were not able to come across this problem in the absence of proper information system system .billing problem, there was a deep problem faced by café coffee day in initial years working of frauds at billing ,of some unusual favours done by ccd staff. To tackle it billing system was made centralized .and as soon as billing was done bill was generated , its copy was automatically mailed to regional head office and country head office.as well as standardization was brought in complete process of billing, by using mis. Logistic problem, with the passing days lot of resources were wasted due to expanding expanding business of ccd, in terms terms of logistics these were were improper communication with logistics team about the requirement at different outlets within city, within state .leading to problems like oversupply, late supply or at times no supply of requirement leading leading to opportunity loss and huge business loss bringing bad name amongst customers. Advertisement Advertisement problem, in the competitive world to stay in in business promotion promotion and campaining of product are equally important ,all the promotion done on internet and e-media is handled by mis team.
WHAT WERE THE CHANGES BROUGHT IN MANAGEMENT INFORMATION SYSTEM : To cope up with the arising problems ,they had built in server storage system ,but due to continuous exponential growth ,the system collapsed because of small storage capability capability . this system didn’t allow any type of centralization in respect of billing process and inventory control ,making feel Bangalore head quarters helpless. They need such a storage infrastructure which can be scaled up against increasing demand. So at that point of time they went in for a direct – attach- storage solution from HP with the capacity of 3tetra bytes. With the daily requirement of data base of about 2 giga byte which was to be stored and maintained ,to scale up the system with demand, in march 2008 ccd took the call to upgrade its system from Intel xeon environment to intel intaniom based HP integrity based system. CCD developed SAN of 15 tetra byte capacity in its Bangalore data centre.the SAN went on floor in 2008 after 1 month of testing ,it has been sized for 3 years keeping in mind of 2 giga byte growth per day. Café Coffee Day opted to run its SAP –ERP application on SUSE Linux enterprise server . Based on operating systems prize performance ,reliability and
scalability. The ERP environment is hosted in data centre managed by third party specialist and offers extremely high resilience. They customized the SAP software for ccd requirements managed its roll out across the organization and provides support and maintenance for SAP ERP. The software is is based on JAVA. SAP ERP plays the crucial role in helping to manage the internal operations and to maintain the extended supply chain. the five SAP server connected to SAN and this is how increased capacity has helped ccd ccd increase its oracle data base space. This was how ccd managed managed its data base and keep on inventing inventing ways to maintain ever Increasing data base. But how to know customer preference ,customer contacts ,customer satisfaction ,e-usage to guarantee customer top of the world service.
SALE SALESM SMAR ARTZ TZ : Café Coffee Day uses the SALESMARTZ software in order to meet its everyday technology needs. SaleSmartz Pro CRM/Sales Force Automation
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Crea Create te full full pri printe nted quo quote tess and and invoi nvoice cess in in sec secon onds ds
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Disp Displlay your our pro produ duct ctss in in an an ele elect ctro roni nicc cat catal alog ogue ue
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Kee Ke ep tra tracck of of you you cust ustom omer erss and and your our co contac ntactt wit with h the them m
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Use Use te templa mplate tess to to sen send d eMa eMail ils, s, fax faxes es and and let lette ters rs to you yourr cus custo tome mers rs
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Email ail filtering and and sorting fo for co contacts
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Ful Fully netw networ orka kabl ble e cus custo tome merr and and//or sing single le use user
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Port Po rtab able le,, gre great at on a lap lapto top, p, tele teleco comm mmut ute e and and work work from from home home
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Synchronise with an an office network
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Keep track of stock levels
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Setup yo your ow own qu quote/order te templates
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Expo Export rt quo quotes tes and and order rderss to to ac acccount ountiing syste ystem ms
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Create mailouts in seconds
From a quick and easy software solution for a small business
To a comprehensive Enterprise solution
MINIMUM SYSTEM REQUIREMENTS
O/S: O/S:
Window Windowss 9x/ME 9x/ME/NT /NT4/ 4/200 2000/X 0/XP,V P,Vist ista a
RAM: RAM:
16 MB Free Free RAM
Disk: Disk:
10 MB Free Free Space Space
Proces Processor: sor: 486, 486, Penti Pentium um Reco Recomm mmend ended ed Nettwork Ne work::
All All le leadi ading prot protoc oco ols
HOW MIS REVOLUTIONIZED THE FUCTIONING OF CAFÉ CAFÉ COFF COFFEE EE DAY DA Y: SUPPLY CHAIN MANAGEMENT: CCD in order to control their inventory they implemented SAP ERP system and SOP (sale of point) cash register ,with the help of five servers all the outlet cut across the nation were connected connected to their regional head quarter and in the process all the outlets were connected to country head quarter. for example data base of any
given outlet is maintained with regional head quarter and complete data for last many years (from the date the outlet has started operations ) had been maintained at country head quarter at Bangalore. All the informations reach to the head quarter and the anlayze the data and accordingly the maintain their supply chain in order to achieve the responsiveness. They achieve the efficient supply chain due to cross-dock implementation. In cross-dock they do not store the inventory to a particular pa rticular ware house. As they receive the order they supply it to different outlets without storing. In this was they reduce their cost
BILLING SYSTEM: As they implemented the POS system all the informations regarding sales reach to the head quarters from all the outlets. From the given database they predict the demnds of a particular products in differents products and keep on introducing the new new products according to the consumer taste and preferences.For example they have introduced the bakery products in their outlets due to the demand so they are changing according to the requirement.
TRANSFER IN AND TRANSFER OUT: Transfer in and Transfer out is a system by which they can exchange their inventory inventory as per their requirement from their their different outlets . But important is that how would they know their requirement and how can they know from where they can get their inventory ? Here they are using MIS means SUSE LINUX ENTERPRISE SERVER. All the outlets are connected through this server. Due to this they know the status of inventory in all outlets .These all outlets are connected to their main head office through the server , which is is placed in bangalore. If any product product is short at any of the the outlets, they get it from another outlet and these all information reach automatically to its main branch with the help of MIS system. system.
LOCATION LOCA TION PLANNING PLANNI NG :A business process needs to deal with numerous variables in the global environment. One such process is location planning. Location planning is a vital component in making any business successful and realize its full potential. It is the foundation step and if this goes wrong the entire objective of the business fails.
CCD has effectively made use of the MIS in order to manage the massive data related to the various variables which are involved in location planning. This has helped CCD to come up with the optimum decisions with respect to the location they want to open their store in.
The variables on which data is collected for location planning by CCD are :• • • •
Is the location situated on a MAINSTREET? MAINSTREET? Is the location situated in a COMMERCIAL AREA OR RESIDENTIAL RESIDENTIAL AREA? Is it a POSH AREA? Are there any SCHOOLS/COLLEGES SCHOOLS/COLLEGES nearby?
CCD collects data on the above mentioned questions through various surveys surveys and polls. This data assists the Business Development Team to zero-in on a location.
For e.g. CCD OPENED A CAFÉ IN PGI DENTAL COLLEGE BASED ON THE DATA COLLECTED REGARDING THE NEED OF THE TARGET CONSUMERS (college students).
CCD IS ALSO OPENING A CAFÉ IN INDIRANAGAR, LUCKNOW WITHIN TWO MONTHS. MONTHS. It was able to come to this decision as the data collected showed that a majority of the population living in that area was that of students in the age group of 18-24. This age group constitutes constitutes the largest largest % age of customer customer base of CCD. CCD.
RIVAL RIV AL STRA S TRATEG TEGY Y: an important thing which has got nothing to do with MIS but still important important for information is how to keep information about rivals sale and rivals product profile is, suppose ccd send its one of the employee to the outlet of rival like barista as a customer there after taking service service ,this customer is is provided with a bill let the bill number be x and then in later part of day just before the outlet of rival rival is about to close they again send an employee employee to rivals as a customer ,again he takes a service and is again fetched with a bill .suppose the bill
number is y ,so difference difference (y-x) is the total sale of the day . and by following such activities product product demand of such such stores could also be known.
CUSTOMER RELATIONSHIP MANAGEMENT: In the modern time , with the increasing competition ,for any brand it is becoming important to not only provide value to customer ,but also to please the customers , to develop relation with customers. In case of café café coffee day ,they did it by first taking taking some of the personal information from customers like dob, anniversary , preferences . then on these special occasions ccd staff not only wishes these customers , but also greet them with e-greetings or by sending greetings at home. Inviting them and serving them according to their preferences . to tap the craze amongst a mongst the users ,they tie up with the brands like bajaj pulsar ,here, they allow these brands to promote promote the product in outlets of ccd , and providing these products products as lucky draw.(for allowing allowing bajaj pulsar to promote their bike in premises of outlets ,ccd take 3 lac per month ).
DRAWBA DRAWBACKS CKS OF USING USIN G MI M IS:
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The performance of an MIS hugely depends on the kind of application software being used and in order to avail the best softwares, substantial costs are incurred. Therefore, CCD has to invest a lot of capital in procuring the softwares. softwares. Since the Management Information System is highly sensitive, they require constant monitoring and CCD has to take care of its constant maintenance. The workforce has to be well-trained to handle such systems as the input they are giving into the system will determine the authenticity of the output generated by the system.
BIBL BI BL OGRA OGRAPH PHY: Y: •
www.cafecoffeeday.com
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Gomtinagar café coffee day outlet
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Hazratganj café coffee day outlet
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J.Shankaran (Citi Manager)
