International PAD in Operations and Logistics

2017 II

Course: Control and Evaluation of Operations and Logistics

Professor: Dr. Armando Valdés Garrido-Lecca
Subject: MEDAL - Medal Report for the company Hipermercados Tottus S.A.

Members:
Castañeda Serrano Johann V.
Sánchez Maldonado Walter M.
Silva Caycho Pedro G.
Tinoco Gutarra Alberto
Urbina Lozano Carlos

June 2018
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INDEX

I. INTRODUCTION 3

II. RESUMEN GENERAL 4

III. CURRENT SITUATION 7

IV. OBSERVACIONES Y RECOMENDACIONES27

V. ANNEXES 30

VI. BIBLIOGRAPHY 39
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I. INTRODUCTION

Tottus S.A. hypermarkets is a company dedicated to retail sales.

Retail of food products, cleaning products, personal hygiene, clothing,
home improvement, among others.
Currently, Tottus Hypermarkets has 55 stores nationwide and
with a Distribution Center in Huachipa, where it stores the different
product categories from all suppliers and distributes them to the
different stores at the national level, it also has 3 sales channels: Store,
online sales and sales to companies.

Vision
To be a leader in every market where we compete by offering the preferred place.
to buy and work.

2. Mission
Satisfy and exceed the expectations of Peruvian families through a
shopping experience that optimally combines product, price,
service and coexistence, thereby saving families money so that
live better.

In the present work, an audit was conducted according to the MEDAL methodology.
to the online sales channel, finding opportunities for improvement especially in the

key area 7, personnel, recommending training for the staff

the person in charge should be clear about their functions and not leave responsibilities unfulfilled,

likewise so that they know how to react to situations like false ones
orders.
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II. GENERAL SUMMARY

Tottus has 55 stores nationwide and a Distribution Center in Huachipa to
warehouses for dry products, fresh products, and production center, where it centralizes the

receiving of suppliers for subsequent storage, picking or production,

shipping and distribution to stores nationwide.
The various stores have the following formats:
Format Quantity Range M2
Hyper 11 greater than or equal to 5000
Hyper Compact 25 2500–5000
Super Extended 11 2000–2500
Super 8 500 - 2000
Total 55

The Distribution Center has 106,000 m2, which includes the dry warehouses.
and fresh; and the production center:
Warehouse M2 approx.
Dry 30000
Frescos 30000
Production Center 15000

Product line
The product lines are commercially divided into two main groups: Food and Non Food.
Type of product Product Lines
Food PGC Edible (Product of Great Consumption)

Perishables
Non food Non-food (Fast-Moving Consumer Product)
Textile (this line also has products from the J09)
Home - Bazaar
Home Electronics
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Product Lines Hierarchies %

PGC Edible (Product Gran J01 Edible PGC
20%
Consumption
Non-edible PGC (Product Gran J02 Non-edible PGC)
18%
Consumption
Perishables J03 Meats and Fish 4%
J04 Fruits and Vegetables 5%
J05 Cold cuts, Dairy products, and frozen foods
5%
J06 Bakery and Pastry 2%
J07 Prepared Dishes 2%
Textiles (this line also has products J08 Clothing
from the J09)
15%

Home - Bazaar J09 Home 8%

J10 Market 7%
ElectroHome J11 ElectroHome 14%

2. Volume and variety of inventories

Product Lines Hierarchies M3
Consumer Goods (Fast-Moving Consumer Goods) J01 Edible Product 172,500
Non-consumable (Mass Consumption Product) J02 PGC Non-Edible 155,250
Perishables J03 Meats and Fish 34,500
J04 Fruits and Vegetables 43,125
J05 Cold cuts, Dairy products, and frozen foods 43,125
J06 Bakery and Pastry 17,250
J07 Prepared Dishes 11,500
Textiles (this line also has products from the J08 Clothing)
258,750
J09)
Home - Bazaar J09 Home 230,000
J10 Market 161,000
ElectroHome J11 Home Appliance 644,000
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3. Most important supply sources

As a retail company, the supplies come from local purchases and
foreign (imports) at the following percentage:
Provider %
Local 65%
Foreigner 35%

4. Number of staff
Personal Quantity
General 10350
Logistics 1830

5. Support teams available

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III. CURRENT SITUATION

3.1 ORGANIZATION

The objective of key area 1 is to know the current situation regarding hierarchical relationships and
functional roles of the different positions related to inventory management and through
From the analysis of the information, it will be possible to know the degree of authority and responsibility assigned.

to each position as well as the degree of communication that exists in the organization.
This is in order to find out if the current organization is aligned and has a clear understanding of the objectives that must

to be reached.

From the study of the applicable regulations to the entity and the analysis of the current situation of the area of

Management of DVD and the application of the processes for order attention and delivery has been
identified the following critical areas due to their materiality, risk, and importance.
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Critical area Risk Factor Risk Audit Procedure to

apply
DVD Office (Picking Orders Fulfilled Without High User manual review
Center a record by for the validation of the registration of

of the client orders on the web

Store sale floor missing or existence of High Analytical review of the subprocess
(Picking Center) surplus of products the picking of orders
Zone of product crossover requests in High Analytical review of the subprocess
(Picking Center) the orders of packing and dispatch
DVD Office (Picking Wrong Documentation) High Review of the emission of
Center documents for dispatch
Customer service Unresolved complaints High Review of the types of claims
opportunely for order attention

The points of attention to keep in mind are the following:

Stores with picking Center: Those stores that receive orders online,
where they are prepared and delivered to the customer's home
Web [Link]: Sales channel where the customer registers their order
Distribution Center: Supply of products to the picking center
Head Office of the company: Coordinations with the heads of operations, web and
inventory systems.
SAC modules in store and Call Center: channels through which complaints enter
customer for the attention of orders.

Analysis of Key Functions in Specific Logistics Management

In order to establish compliance and analyze whether the functions would apply or not for each
member will proceed to conduct analysis for each position and establish a percentage of
compliance of equipment. To this end, a list of functions was created based on the information from
manuals provided by the company and verification proceeded based on the following table
of qualification.
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Grading table Score

Does not comply 0
If it complies 1
Not applicable NA

The following tables show the assessment for each member. It should be taken into account.
The analysis only checks compliance and not levels of efficiency.
Evaluation 1: Merchandise
Birthday? Comentarios
It has quality staff
Ensure the follow-up of quality control of
1 1 checking the merchandise
goods that enter and leave the warehouse
starter
It is available with
Ensuring the proper use of the equipment intended for the monthly training of
2 1
warehouse activities teams to the
collaborators
Follow-up to ensure conservation and good condition It is not carried out
3 0
of the products in the warehouse
4 Monitoring of order and cleanliness of central warehouse 0 Is not carried out
There is a person in charge of
5 Responsible for approving stock codes in the warehouse 1 platform for its
approval
It is informed by the
6 Report the inventory status monthly. 1
system
Totals 4
Compliance 66.5%

Assessment 2 Purchase of Merchandise

Do you comply? Comments
Support in the request for quotes according to
1 1
requirement of the user areas

2 Support in the issuance of local purchase orders 1

Ensuring compliance with the best choice in the It has trained personnel
3 purchase both price quality and conditions of 1 for the purchases Chiefs of
credit Retail Category
Responsible for forwarding the request for creation of
4 1
codes in the workflow system and finally to warehouse

5 Monthly reports of cataloged codes 1

Totals 5
Compliance 100%
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Only supply functions are being considered for the analysis of supply functions.
that affect purchases in the process since, as mentioned, it also fulfills a role
customer support.
Evaluation 3 Internal Supply
Do you comply? Comments

1 Responsible for the request for local quotes 1

Ensure compliance with the best choice in the

It has a specialized area
2 buy both price quality and conditions of 1
Supply for purchases
credit
internals
Manage claims with the suppliers for the
3 1
failures and defects of the inputs.
4 Prepare status and ranking of current suppliers 1
Totals 4
Compliance 100%

Assessment 3 distribution center

Does it meet? Comentarios
Receive the orders and register them accordingly.
1 1
correct in the accounting system

Correctly distribute the materials inside

2 from the warehouse. 1

Attend to the requests made by the users and

3 1
report the outputs to the accounting area
Totals 3
Compliance 100%
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SCM Team Compliance

Does it fulfill?
1 Merchandise 67%
2 Purchase of merchandise 100%
Internal Supply 100%
4 Central de distribución 100%
Average compliance 92%

Based on the review in key area 01, an important part of the process can be concluded as the
purchase order dispatch, creation and approval of codes, approval of orders
They are supported by the SAP ERP, otherwise like the controls and supervision.
inside the warehouse all this could cause a probable delay in the entire management due to the
deterioration of the merchandise that is not achieving compliance in the current management.

3.2 FINANCIAL ANALYSIS OF INVENTORIES

This key area is directly related to the investment that the company maintains in
inventories.
Procedure to value Inventories
The area responsible for valuing inventories is the management of administration and cost, after
the warehouse documentation received is in accordance with the specific Purchase Order,
The entry into the system is carried out, the way in which inventories are valued is based on a cost.

average versus the entire history so that the item to be entered maintains a cost
average also at its warehouse exit.
The ERP used in the company is SAP R6, it allows tracking by stock code for
know the entries, exits of materials, current stock, entry of Purchase Order regarding
for a certain item, in which engine service order the material was used.

The reports provide information on current stock, daily inflows, and outflows.
items, stock movements, materials in obsolescence, ABC analysis, all with access to
planning, accounting area and warehouse manager. The information can be exported.
and visualized in the system.
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Inventory Classification
Our SAP module does not have an inventory classification due to its nature.
stock movement Crossdocking which is basically everything that enters as goods
it is worked on and not stored, that is why the products that have movement in
warehouse would be considered consolidated merchandise to be dispatched (orders),
they would also not have finished products since their final product is a service.

Inventory Difference
The reconciliation of the general ledger with the platform manager occurs at the end of the year, the responsible parties are the

Accounting area and the platform manager of the distribution center, the procedure
It is the total physical count of orders versus the current status in books and system. Finished.
At the end of the year, the accounting department prepares a summary of the discrepancies.
found in orders to be dispatched, a verification of the items of highest value is carried out
and proceeds to positive and negative adjustment if applicable, all adjustment is against results is

they affect positively or negatively the same.

For analysis purposes, the data of the differences reported at the close of the year 2016 is available,

it was found in monetary value terms the total of negative and positive differences
the sum is S/. 14789.61, an amount lower than the total valued, the difference
found is in 20 orders in permanence in the CD.

Consolidated merchandise Obsolete

The company has a report called Obsolescence Listing, where
find obsolete merchandise however there is no procedure with scheduling
of actions to be taken based on what was found and no way to control it.
For analysis purposes, those orders that have no movement since the
From the year 2016 onwards, it was found that the total of items amounts to S/ 34810.07 approximately.

of 22.28% compared to the total value of the current inventory at the end of August 2017 that
It was S/ 156,239.12.
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Number of Orders Greater than

Description
7 days
CRISTAL ULTRA BEER BOTTLE X330 ML TRM X6 250
ACOND DOVE RECONST COMPL NUTRI-KERATIN BOT 946ML 249
TOTTUS VEGETABLE OIL 1L 247
SOFT DOUBLE SHEET TOILET PAPER RINDEMAX BAG X 32 UNITS 225
6PK DAIRY MIX COMP. PURE VIDA 400G 196
LEMON LIQUID DISHWASHER HELP 900ML 194
6PK LACTOSE MIXTURE BONLE FAMILY X500G 186
BI-PHASE REMOVER PACK + BLACK LOREAL 174
SPAGHETTI DON VITTORIO X 1 KG 160
SOFT TOILET PAPER GENTLE CARE DOB HOJX24UN 154
Tuna fillet in Campomar oil 150
208L AUTO FROST SINGLE DOOR REFRIGERATOR 134
GILLETTE MAQ AF PRESTOB3 PAY 3 GET 4 129
TRADITIONAL WHITE SLICED BREAD WITHOUT CRUST X 540G 125
PRIMOR VEGETABLE OIL X 1LT 119
OPAL ADVANCE DETERGENT 4.5KG 115
FRUGOS PEACH DRINK SIX PACK CJ 235ML 94
SPORADIC ASSORTED SIX PACK X 500ML 83
SIX PACK GLORIA WHOLE MILK 400GR 60
ACE REGULAR DETERGENT 6000GR 54

Inventory Turnover Index

The objective is to calculate the index based on its turnover from a financial point of view.
for this, there is information from the last 5 years regarding annual consumption where
All merchandise departures in temporary storage and the inventory are considered.
average, considering the value of inventory at year-end.
Year 2012 2013 2014 2015 2016

Consumption
Annual S/. 5,350,289.00 S/. 6,987,452.00 S/. 7,412,966.00 S/. 7,696,587.00 S/. 8,524,789.00
(soles)

Inventory
Promedio S/. 1,500,762.00 S/. 1,887,589.00 S/. 1,588,963.00 S/. 1,916,854.00 S/. 2,777,598.00
Soles

Index of
4 4 5 4 3
rotation

The index indicates that inventory turnover over the last 5 years has averaged each
items remained in the warehouse for approximately 1 week before being
delivered to users.
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ABC classification by movement and value

Currently, the organization has a report for this classification; however, the
The report only considers the quantities of movements, that is, the frequency of income and outflows.

in number of times per year, but not valued for it, will proceed to carry out the
classification based on the total income and output of items given in the year 2012 in order to
to know the actual incidence of the items and to know in the first instance those that
represent a higher value.

ABC Classification 2016 (assembled pallets)

Class Income % ITEM
A $9,968,522.00 56% 1115
B S/. 6,123,659.00 35% 356
C S/. 1,598,755.00 9% 94

S/. 17,690,936.00 1565

After the analysis of key area 02, it is found that the company does not have a procedure.
and material treatment, the inventory turnover rate of materials in stock is low for
the delivery policy.

3.3 WAREHOUSE AREA

The objective of the key area is to know the facilities for reception activities.
storage and dispatch of goods, in order to know if there is any aspect that would be affected
the efficiency of operations.
For the analysis, the plant analysis will not be considered as mentioned.
Previously, they are finished products with a Crossdocking process; there are no points of
plant storage.
The company offers two options for order delivery such as: Customer pick-up
in-store and home delivery from a picking center. Additionally, there are two
picking centers located in the stores: La Marina and San Luis.
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Warehouse Distribution Analysis

After the tour, it was found that the current warehouse has 250 shelves for
storage of goods in transit that are normally purchased to maintain
in temporary stock for 3 days, the same ones that normally do not last long
in the warehouse.

To finalize the analysis, a checklist proposed by the methodology for the warehouse will be applied.

under study, in order to establish a score regarding the current situation, shown in
the painting
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WAREHOUSE CHECK LIST Yes No

General Conditions of
warehouse
1 Lack of cleanliness x
2 Wasted area capacity x
3 Unidentified merchandise x
4 Excessive provisional storage x
5 Stacked merchandise x
6 Wasted storage volume x
7 Defective Lighting x
8 Inadequate Ventilation x
Characteristics of the
merchandise
9 The type of merchandise causes handling problems. x
10 The type of merchandise requires mechanical handling. x
11 Damaged goods mixed with good ones x
12 Too much waste x
13 Reception of unit packaging x
Unit loads hinder or are inefficient for their
14 x
management
Transfer
15 Characteristics of the warehouse restrict the transfer x
Workflow complicates management of
16 x
merchandise
17 Passes several times by the same place x
18 Too much distance between the operations x
19 Traffic jam x
Management Method
20 Transfer of one item at a time x
21 Excessive manual handling x
22 Inadequate waste removal x
23 Excessive merchandise in the picking x
24 Insufficient merchandise in the picking x
25 Poor flow at the workstation x
Packaging
26 packaging is used for transport x
27 Frequent change of packaging x
28 Packaging shortage x
29 Poor palletized packaging x
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Visual Warehouse Analysis

For what is found in affirmative responses, it is known that the items are weighted in some way.
mostly cables are on the floor because the shelves would not support them and not
they would allow easy manipulation, such materials items need for their handling the
use of pallet trucks. The following images record the shelves where they are
materials stored, record taken in June of this year.
The way to locate the materials is identified only by the code under which they are listed.
registered in the system physically do not have further detail of type, condition of
quality, etc.

Figure # 1. Finding in spare parts warehouse. Own elaboration

The analysis of key area 03 leads us to determine that the warehouse currently has
positive points mostly regarding the distribution of the points reviewed in the checklist
proposed by methodology.

3.4 CURRENT PROCEDURES

The objective of this key area is to understand the procedures used for management of
inventories to ensure their efficiency, know the documents, reports
that move in each area in a way that allows understanding the degree of occupancy and
congestion of the procedures.
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Work Planning, Budgeting and Control

Planning is the area responsible for initiating the requirement cycle of a specific
merchandise, this is where the need for a certain purchase arises, for various reasons
The main aspect is compliance with a final delivery service to the customer or sale detail.
Therefore, the planning of merchandise requirements begins when the order is received.
Purchase issued by the client, the planner proceeds to carry out the service planning.
in activities, time, materials and services to be outsourced, also validate that not
have materials in stock and issue the list of requirements to purchasing.

Purchases

The procedure used to process and issue a Purchase Order begins with the
need for planning after that:

The business analyst is responsible for obtaining the proposals for the purchasing case.
locales, they must take into account quality criteria, payment conditions, price and
to have queries, refer them and resolve them with the user area. Once the proposal is achieved,
Information is forwarded to the supply area, which is responsible for requesting the
requirement by the system.

Then the supply enables the option to generate the Purchase Order and finally the
send to the supplier keeping the commercial area in copy. In the Purchase Order issued
The supplier must provide detailed delivery address information, payment method, delivery method.

delivery, quantity, price and delivery date. Following schemes 7 and 8 it can be
observe the detailed process followed by a requirement for local purchases and
imports respectively.
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Supplier Selection Policy

In the company, suppliers are differentiated into non-critical and critical. The former must...
meet the following requirements:
RUC file, Current Powers, Certifications, Credit Status.
The selection is solely the responsibility of the buyer who must consider
quality criteria, price, delivery times, payment method, and compliance.
Main suppliers:
No. LEGAL NAME OF SUPPLIER

1. ALICORP SAA
2. UNION OF PERUVIAN BREWERIES BACKUS AND
JOHNSTON SAA
3. Lindley Corporation S.A.
4. GLORIA S.A.
5. AJEPER S.A.
6. LAIVE S A
7. MABE PERU S.A.
8. BRAEDT S.A.
9. ELECTROANDINA INDUSTRIAL S.A.C.
10. SAMSUNG ELECTRONICS PERU SAC
11. PROCTER & GAMBLE PERU S.R.L.
12. UNILEVER ANDINA PERU S.A.
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13. LG ELECTRONICS PERU S.A.

14. INTERNATIONAL MACHINERY AND TRADE S.A.

15. BIMBO BAKERY OF PERU S.A

16. SAN FERNANDO S.A.
17. MOLITALIA S.A
18. COGORNO S.A.
19. GLOBAL UNIFORMS S.L.
20. DIAGEO PERU S.A.
21. PARADISE PRODUCTS OF PERU S.A.C.
22. SONY PERU S.R.L.
23. Swiss-Peruvian Society of Sausages S.A.
24. AGRIBRANDS PURINA PERU S.A.
25. CUTLERY FACTORY SAC
26. PEPSICO FOODS PERU LLC
27. KIMBERLY-CLARK PERU S.R.L.
28. ARTESCO S.A.

Purchase Analysis

For the analysis, the data obtained from the total number of PO issued in the year 2016 under the ERP will be used.

It is detailed with the purchase orders and the month of entry. This information is from
correct form in the ERP SAP.

Analysis of Purchase Order Delivery Time

To analyze the most common causes of delays, information will be taken from the Area of
Purchases that have order tracking issued and the date is known.
shipped to the supplier, the warehouse has a material arrival date at the warehouse, at
it should be noted that none of the areas have reached an agreement to
work on the follow-ups that have been recorded.
It was identified that the main causes of delay were because the supplier had
communication problems due to not knowing the correct delivery address, in some cases
the supplier communicates, to this is added the fact that none of the members are
taking direct responsibility for the follow-up of purchase orders since the
transport is outsourced.
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Among the provider's responsibilities are basically issues of

compliance on time, there is also the case that the supplier did not send
correct documentation therefore the merchandise cannot enter SAP following the
The correct process to dispose of them is to wait for the correction lifting.

Reception and Warehouse

The procedure for reception and storage for the entire group can be seen in
For the reception of purchase orders:

The warehouse manager checks the shipping guide against the purchase order,
taking into account details such as quantity, weight, dimensions, etc. and proceed to the
receipt of material.
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Office

The procedure for merchandise dispatch:

For the processes of receiving, storage, and dispatch as mentioned in addition to

Purchasing, that is, all the processes of logistics management are recorded in SAP.

3.5 SCOPE, ACCURACY AND TIMELINESS OF THE SYSTEM OF

INFORMATION

The analysis of key area 05 aims to evaluate vital aspects such as

material coding, materials catalog and information reports, from
three perspectives: scope, accuracy, and timeliness to produce information that
allows efficient inventory management.

Material coding

The area responsible for the opening and maintenance of codes in the material master.
It is Master Data. Everything is cataloged in SAP

Inventory Status Reports

Inventory reports can be viewed in the system and accessed daily by the
involved, currently no reports are issued to management at set periods. There are 06
reports generated in SAP system:
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Valued Stock Control (Current)

Daily Income Closure
Daily Departure Closure
Stock Movements

3.6 INTER-SYSTEM RELATIONSHIPS THAT AFFECT ADMINISTRATION OF

INVENTORIES

In this sixth key area of MEDAL, it will allow to establish the degree of coordination that
exists between the different organizational units, which through the systems
are directly or indirectly related to logistics and materials. They
they will evaluate the coordination relationships that exist between the areas or subsystems
de:
Purchasing and Warehouse

Planning and purchasing.

Warehouse and finance.

Due to the nature of the company, Engineering, Sales, and Production Control will not be analyzed.
they are areas that do not intervene in inventory management.

General Internal Control Questionnaire

Ref. Question NO YES N/A Observations
1. Is there a manual of functions? y X Within the process map
procedures? the documents are handled
a. Is it written? X of the area

b. Is it clear and precise? X

2. Are the definitions clearly established? X Attention Procedure and
responsibilities and lines of authority? order delivery
a. Are they established in a document? X Care Procedure and
order delivery
3. Is it contemplated in the X
procedures, the systemic activities?
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4. Is the operational process (order reception, X The process must be analyzed and
picking, packing and dispatch) is appropriate or identify the issues
inadequate?
5. Is there a system that allows for having X Dispatch System and
the traceability of orders? PMM System (System of
merchandise management
6. Does the system include all controls and X Review the functionalities and
functionally restrictions for the systemic activities within
users? of the process

7. Is there a DVD budget? X It has first-rate management.

line in the organization

8. Is there an interrelation with other areas? X Areas: Sales Floor of the

store, SAC module in the
store and CD
a. Are they expressed in writing? X
b. Are they appropriate and clear? X
9. Are orders being taken?manually X In light of the presented contingency

documented? (System crash).

10. Is prior data validation required? X Manual process that should

Client before starting order processing? be automatic

11. Do the zones facilitate operational flow? X Each area is delimited and
visualized in the layout
12. Is there an optimal response time to X? Review of times
the claims submitted for requests? response with SAC and staff
DVD administrative

13 Is there any performance incentive? X The incentive is for deliveries of

orders a clients
effectively
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In the analysis of key area 06, it can be summarized that there are coordination problems.
mainly between DVD and CD, this could be due to the lack of clarity.
responsible for monitoring and restricting users.

3.7 COMPANY PERSONNEL RELATED TO THE

INVENTORY MANAGEMENT

This constitutes the last key area established in the MEDAL methodology, it aims to evaluate
to the personnel responsible for inventory management from a technical point of view. In order to
to know the associated staff, the detailed information of the team is shown in the
table 36 details the position, academic level, and seniority in the company.

Evaluation Questionnaire
Question YES NO Observations
Does the area have any limitations in the X The system does not consider the

scope of work? control functionalities for the

process
Have the necessary positions been defined? x
to carry out the objectives
expected?

Is there anything preventing development? x

complete with responsibilities?
Does the department have the resources? X
necessary to carry out the plan of
audit?
Are there people or groups that are X Some staff members use the system
creating problems for the flexible to perform operations not
implementation of key controls or registered by end customers.
do they have an unethical commitment?
Does the department have enough? X It has a top-tier management in the
organizational independence for power organization
achieve their goals?
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In this last key area 07, it is found that there are not enough positions.
functions and responsibilities of the logistics staff because they affect
directly to the picking operations, as well as the organizational structure prevents achieving
the set objectives. Based on what has been reviewed, it is verified that the current operation is only

achieving daily reach but not stopping to analyze results,

indicators, follow-ups, etc., just as found in previous key areas.
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IV.- OBSERVATIONS AND RECOMMENDATIONS

4.1 OBSERVATIONS

Proposals Analysis
Establish new roles and
modify the MOF During all the points analyzed in the
distributing key areas have been identified as a point of
Company personnel
adequately the a situation where the staff is unclear about
functions for the act in response to a false order.
structure of the online channel
It will allow the staff to be trained and
Training programs
Lack of Training constantly committed to the
to the staff
company objectives

4.2 RECOMMENDATIONS

At this point, proposals for solutions to problems found in the previous point will be presented.
previously, as well as analysis for each proposal.

Training Plan for Logistics Team Members

Based on the review, one of the main reasons why current logistics management does not
the optimal development is the lack of training programs for the
logistics team members, although the team has notable professional qualifications
You know that the functions have not been fully complied with, the procedures have not
they were clear for the structure.
After an interview conducted with the DVD Manager with 5 years of logistics experience, it
he has come to the conclusion that it is important to disseminate the new proposals made
in addition to ensuring that all members are committed to the follow-up
continuation and control of logistical administration.

Objective of the Training Plan

Achieving the development of skills, attitudes of all members of the logistics team to
in order to improve the performance of current logistics management.
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Specific Objectives

Improve communication and coordination levels among all team members

logistical.
Disseminate the new procedures under consideration to ensure their compliance, as well as
indicators and follow-ups to take into account as well as responsible parties.

Encourage the manuals of functions for each member, in order to avoid delays and/or not
fulfillment of functions.

Logistics Audit:

In order to locate ourselves and seek continuous improvement, the dissemination of each of the
key areas of the MEDAL methodology and review progress and new points in each meeting
control, with the aim of achieving a final report by the end of the year that will support in
establishment of objectives for subsequent years.

An internal audit team should also be formed to carry out the follow-ups.
respective:

Personal Category Activities to be carried out

Alberto Jhair AUDITOR Review and approve the final memorandum of

Tinoco Gutarra Responsible audit and final report. Ensure the process
of auditing in coordination with the team
auditor.
Pedro Silva AUDITOR Verify the compliance of the audit team
Caycho SUPERVISOR according to the schedule. Preparation of reports

of audits.
Johann SENIOR Review the supporting documents
Castañeda regarding home delivery orders
Serrano from the client

Mario Urbina SENIOR Review the operational process (reception of

Lozano orders, picking, packing and dispatch of
order fulfillment in the picking center
Walter Sánchez SENIOR Review the system functionalities and their role
Maldonado in the order fulfillment process.
 29

Evaluation and Internal Control Questionnaire

Prepared by: Walter Sánchez Maldonado

Reviewed by: Guillermo Silva

Date: 24/05/2018
Department: DVD

Objectives: Highlight key controls in

the attention and delivery of

orders from the website [Link]

Time budget by categories, areas, and visits

No. SURNAMES AND NAMES CATEGORY HOURS COST OF

REQUIRED ACTIVITY (S/.)
1. Guillermo Silva Caycho Auditor 10 1,500.00
Responsible
2. Alberto Tinoco Gutarra Auditor Supervisor 10 1,000.00
3. Johann Castañeda Serrano Senior Auditor 10 600.00
4. Mario Urbina Lozano Senior Auditor 10 600.00
5. Walter Sánchez Maldonado Senior Auditor 10 600.00
TOTAL 4,300.00
ADMINISTRATIVE EXPENSES 600.00
OTHER EXPENSES 200.00
TOTAL BUDGET COST 5,100.00
 30

V. ANNEXES

ATTENTION TO FOLIOS F12 FROM THE WEB

[Link] (DVD)
SGP–VTA–PR–262

Review: 00
Effective Date: 01/23/2018

Type Cargo Name

Approved By: DVD Manager Rafael Vargas
Zonal Operations Manager Guillermo Luna
Reviewed by: DVD Operations Manager Jhancarlo Morales
Processes and Projects Deputy Manager of EO Rosa Rentería
Prepared By: Process Analyst Alberto Tinoco
 31

Index
1. OBJECTIVE..................................................................................................................................32
2. ALCANCE 32
3. RELATED DOCUMENTSS ................................................................................................32
4. RESPONSIBILITIES:32
5. DEFINITION OF TERMS 32
6. CONSIDERATIONS..................................................................................................................32
6.1. GENERAL CONSIDERATIONS.........................................................................................32
7. DESCRIPTION OF THE PROCEDURE34
7.1. SALE FROM THE WEB– Home delivery for customers and storesA ...........................34
7.2. PRODUCT DELIVERY IN STORE - CUSTOMER PICKS UP...................................................36
8. ANNEXES.....................................................................................................................................38
8.1. ANNEX 01: F12 dispatch format..................................................................38
8.2. ANNEX 02: Home Delivery Service Booklet. 38
8.3. ANNEX 03: Example of a coupon for home delivery service for the Client...Error! Bookmark
not defined.
9. Control of Changes38
 32

1. OBJECTIVE
Establish the guidelines for the proper operation of F12 form dispatches, arising from purchases.
made by customers from the [Link] website, through the CD-Secos to the customer's home and to
the stores for the pickup of the product by them.
2. SCOPE
This document applies to the Dry CD and is applicable to the Stores where the customer picks up their
product for web purchases.

3. RELATED DOCUMENTS
a) Attention to sheets from CD (SGP –VTA–PR–161).
Direct Shipment from the Supplier(SGP– LOG– PR– 205).
4. RESPONSIBILITIES:
Non-Food DVD Manager / Store Manager
Ensure compliance with the procedure.
b) Click & Collect Manager / Non-food Permanent / Shift Executive:
- Attend to all customers entering the store for the pickup of their product purchased online.
- Enforce this document and verify that all personnel in your area are fully aware.
qualified in this procedure.
c) Customer Service (SAC):
Notify the person in charge of Click & Collect/Permanent Non-food/Shift Executive about the arrival.
from the customer for the pickup of their product.
Keep track of the scheduled, delivered, and pending sheets.
d) Loss Prevention Personnel:
- Check that the products removed from the store are the ones indicated in the Delivery Receipt format.
and that it has the stamp of c) Click & Collect Manager / Non-food Permanent / Executive
shift and model/serial number.
e) Platform Chief:
Deliver the product to the Click & Collect manager / Non food permanent / Shift executive
- Place the Platform seal on the back of the client's electronic payment receipt and on the
Dispatch Order Format (F12),
- Keep track by filing a report of the receipts delivered during the day and the certificates of
deliveries signed by the client.
-Close the files in the system after delivering the merchandise to the Click & Collect Responsible
Permanente de Non food/ Ejecutivo de turno:

5. DEFINITION OF TERMS
a) G/R: Remission Guide. This document consists of five (05) copies:
Recipient (white copy) – For the client at the time of the folio delivery.
Sunat (blue copy) – For the client at the time of the delivery of the booklet.
Carrier (yellow copy) – For the carrier who performs the dispatch.
Control Administrativo (copia verde)–Para Tottus como constancia de entrega del folio al cliente.
Sender (red copy)–For Tottus control.
b) Web payment receipt: Refers to the 'printed representation of the receipt
electronic

6. CONSIDERATIONS
6.1. GENERAL CONSIDERATIONS
6.1.1. There are two types of attention for a document:
- Cliente Recoge: Cliente se aproxima a tienda para retirar su producto. No hay cobro de flete.
- Customer Home Delivery: It is dispatched from the store stock to the customer's home and is
Charges for freight according to destination and the execution of maneuvers to place the product in location.
of the Client (if maneuvers are warranted).
6.1.2. Any shipment of a folio to be made from Store to the Customer's home must be channeled through the
CD–Dry.
6.1.3. The dispatch of the merchandise must be carried out in accordance with the current regulations of SUNAT.
In case of doubt, one should consult the Comptroller's Office of Saga Falabella.
 33

6.1.4. The SAC area is responsible for verifying that Clients are attended to on the agreed dates.
and in optimal conditions.
6.1.5. Care must be taken to respect the reasons for the Dispatch, clearly indicating in the field
of OBSERVATIONS whether or not the reason of 'Sale with Delivery to Third Parties' applies, in the case of
Gifts, for which you must note the real sender's details of the merchandise.
6.1.6. In the home delivery mode, it is essential that the carrier opens the box and
Show the customer or receptionist of the merchandise the dispatched product for them to sign the G/R.
acknowledging that the product left is in optimal condition.
6.1.7. In the store, when the product is delivered to the customer, the person in charge of Click & Collect/
Non-food Permanent/Supervisor on duty will provide the delivery receipt format to the customer.
and will request your signature as a sign of agreement. The original is for the client and the copy stays with him.
responsible.
6.1.8. To carry out inquiries regarding the reports of the pages in the system, the user or users must have
access to location 912, where the generated documents from the web are displayed.
6.1.9. At the end of the day, the person in charge of Click & Collect/ Permanent Non-food/ Shift executive
It will deliver the copies of the delivery receipts to the platform staff for their control.
The platform staff will change the status of the ticket to 'Total Delivery' when it is delivered.
the product to the Click & Collect manager/Permanent Non-food/Shift Executive, which to
It will also deliver the product to the customer.
6.1.11. The platform staff will file the following documentation at the end of the day, after the
delivery of the product carried out by the Click & Collect responsible / Non-food Permanent
Shift executive to the client:
6.1.12.-Report of the delivered folios
6.1.13.-Copy of the delivery receipt signed by the client (delivered by the person in charge of Click &
Collect/ Permanent Non food/ Shift executive
7. DESCRIPTION OF THE PROCEDURE
7.1. SALE FROM THE WEB - HOME DELIVERY TO CUSTOMER AND STORE
7.1.1. Procedure Flow
 35

7.1.2. Activities Matrix

No. Responsible Activity

The customer makes the purchase of their product on the website [Link] and confirms it.
Automatically, the system sends a confirmation email to the email of
1. Client client.
Automatically, the customer's order is entered into the system via interface.
warehouse (Manhattan)
Receive the purchase confirmation email in your inbox.
2. Client
End of process
3. Dry CDs Check the order in the system
4. Dry CDs Prepare the order for dispatch to the store or to the customer's home.
Dry CDs Shipping to store or to customer's home?
5. Home delivery to the customer continues in activity No. 10
Dispatch to store, continues in activity No. 6
6. Dry CDs Prepare the documentary file of the merchandise and hand it over to the carrier.
7. Carrier Delivery of merchandise in store
Chief/operator of
8. Receive the merchandise and stamp the documents as a sign of conformity.
platform - Store
Chief/operator of Store the products in a locked area of the warehouse.
9.
platform - Store End of the Process
10. Dry CDs Prepare the documentation file for the merchandise and hand it over to the carrier.
Deliver the goods to the customer's home
11. Carrier
End of the Process

. ______________________________ .
International MBA in Operations and Logistics - 2017 II
ESAN Graduate School of Business
 36

7.2. PRODUCT DELIVERY IN STORE - CUSTOMER PICKS UP

7.2.1. Flujo de Procedimiento

. ______________________________ .
International Executive Program in Operations and Logistics - 2017 II
ESAN Graduate School of Business
 37

7.2.2. Activities Matrix

No. Responsible Activity

1. Client Enter the store and head to Customer Service.
Receive the customer and inform the Distance Sales manager.

In stores with Click & Collect:

Click & Collect Manager
2. SAC
In stores without Click & Collect:
Hiper/Hiper Compact: Non Food Permanent
Super/Super extended: Shift Executive

Responsible for
C&C/Permanent Calls the customer and requests their ID and Order Number. Then, directs the customer to the
3.
Non Food/ electro zone for product delivery
On-duty executive
Responsible for
C&C/Permanent Validate the status of the folio in the system
4.
Non Food/
On-duty executive
Responsible for
Merchandise available for delivery?
C&C/Permanent
5. Yes, continue with activity N°6
Non Food/
No, continue with activity No. 8
On-duty executive
Responsible for
C&C/Permanent Check the status of the folio with the Call Center
6.
Non Food
On-duty executive
Responsible for
C&C/Permanent Inform the customer about the status of their product.
7.
of Non Food/ Continue with activity No. 4
On-duty executive
Responsible for
C&C/Permanent Request the platform for the product with the dispatch order number of
8.
Non Food folio (electronic receipt)
On-duty executive
Staff of
9. Deliver the customer's product and seal the receipt and dispatch order.
Platform
Responsible for
C&C/Permanent Remove the merchandise from the warehouse
10.
de Non Food/
On-duty executive
Responsible for
C&C/Permanent Deliver the product to the customer and request a signature on the product delivery receipt.
11.
of Non Food/ with a copy
On-duty executive
12. Client Receive the product and sign the delivery receipt.
Prevention in
13. Validate the details of the delivery receipt and seal the document.
store
. ______________________________ .
International PADE in Operations and Logistics - 2017 II
ESAN Graduate School of Business
 38

Responsible for
File the delivery receipt signed by the customer.
C&C/Permanent
14. At the end of the day, deliver a copy of the delivery receipt to the staff of
of Non Food/
platform for its control
On-duty executive
15. Platform Manager Close the file in the system. Change the status to 'Total Delivery'
Print the report of the delivered folios from the system and file it with the copy of
16. Platform Chief the delivery receipt signed by the customer
End of the process

8. ANNEXES

[Link] 01: Dispatch format F12.

[Link] 02: Home delivery service brochure.

9. Control de Cambios

Review
Brief description
Version Date

---- ----- -----

. ______________________________ .
International Executive Program in Operations and Logistics - 2017 II
ESAN Graduate School of Business
 39

VI. BIBLIOGRAPHY

1. Tottus S.A. Hypermarkets (2018). Procedure for Attention of F12 folios

from the [Link] website (DVD)
2. Tottus S.A. Hypermarkets (2017) Attention and Return Procedure
of orders/pages in C&C Module or SAC.
3. Tottus S.A. Hypermarkets [who we are] Retrieved June 10, 2018,
of[Link]

. ______________________________ .
International PAD in Operations and Logistics - 2017 II
ESAN Graduate School of Business