ASSIGNMENT

ORGANISATIONAL MANAGEMENT CASES

SUBMITTED BY: Khushboo Seth 107694

Supply chain of Big Bazaar

Supply Chain Management Supply Chain Management covers the planning and management of all activities involved in sourcing, procurement, conversion, logistics and Distribution. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. Objective of every supply chain should be to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the costs the supply chain incurs in filling the customers request. Three macro processes in the supply chain of Big BazaarIn the Big Bazaar supply chain activities belong to one of three macro processes; 1. C.R.M.-All processes that focus on interface between the firm and its customers a. Market b. Price c. sell 2. I.S.C.M.-All processes those are internal to the firm. a. Strategic planning b. Demand planning c. Supply planning d. Fulfilment e. Field service 3. S.R.M.-All processes that focus on the interface between the firm and its suppliers. a. Source b. Negotiate c. Buy d. Design collaboration e. Supply collaboration In the supply chain of any retailer the supplier does not play any role. Supply chain design, planning and operation decisions play a significant role in the success or failure of Big Bazaar. From its beginning, the Big Bazaar invested heavily in transportation and information

infrastructure to facilitate the effective flow of goods and information. Big Bazaar designed its supply chain with clusters of stores around distribution centres to facilitate frequent replenishment at its retail stores in a cost effective manner. Frequent replenishment allows stores to match supply and demand more effectively than the competition.

Supply chain of Big Bazaar

Raising a purchase order to the vendor by the category (In head office and zonal office)

Delivery of the required (negotiated) stock to the store or ware house by the help of transporter (at companys expense)

Receiving of the material at the store with all the required documents

Receiving of the material at the central ware house (C.D.C.) Mumbai Dewas naka

Document check by the security at the gate and in ward register is maintained by following all the rules of S.O.P.

Weighing, counting of cartoons, generation of I.R. no. by putting information on SAP

Compare the material with the documents, stamp the documents, write information with signature of the security and then unload the truck

Stamp on P.O.D. copy and return to the transporter

Transfer of the material to the store ware house

Pre in- warding by scanning the material against the inbound no. by E.A.N. and article no.

Generation of the G.R.N. of the material after the scanning on S.A.P. as well as on REM against article no. or EAN

Post in warding by generating G.R.N. of the in warded stock.

Maintain in ward register by putting all the required information

Segregation of the material (M.C. wise and category wise)

Send the stock to the flour as per the requirement

Racking of the material by giving location to the rack as well as to the box (for the maintenance of the W.M.S. sheet)

Send all the documents to the commercial office for the preparation of MIRO sheet (send to head office for payment purpose) and for the records

Out warding of the material from central ware house to the store, after receiving S.T.O. from the store.

Posting of all the documents comes with the stock from vendor, as well as comes with S.T.N. to the commercial office for the payment purpose and record.

Receiving of the material at the store against S.T.N.

1) Raising a purchase order to vendorBig Bazaar category maintains the flow of material from vendor to store or from vendor to ware house to store. Category does not receive any demand order from store or ware house. Actually category keeps the record of movement of flow of material from ware house to store & also per day & per week sale on the flour. On the basis of this data & also from market research, category estimates the demand of customer & makes purchase order to the vendor. When we open a store we call different vendors then after negotiation with vendor on prices & other condition & schemes we provides them, vendor registration no. so purchase order is made against this vendor no.& then vendor give us information about no. of items presents in their manufacturing ware house for supply and we register those items by vender code. Mapping :The process of determining locations and adjacencies of departments and merchandise inside a store. 2. Delivery of the required (negotiated) stock to the store or ware house by the help of transporter (at Big Bazaar expense)After receiving purchase order from the category, vendor delivers the material to the given location (store or ware house) by the help of transporter hired by the vendor (transportation at vendors expense) with the invoice copy and purchase order copy. Document bring by the transporter with the stock are1. Consignee copy 2. P.O.D. copy 3. Purchase order 4. Invoice copy 5. A.S.N. copy

6. Quality check 7. Way bill (Out of state) Conditions1.Material should be according to the quantity given in the purchase order. 2.Delivery should be at time. 3.Vehicle should be sealed pack at the time of delivery.

Packing guidelines1. Net weight of the packet should not be more than 25 kg. 2. BOPP tapes should be printed 3. Packaging with stretched wrapping 4. Packaging should be dry 5. Label pasted on the packages should be clearly visible

3. Receiving of the material at the Big Bazaar (Mumbai) store with all the required documentsCategory makes purchase order for the store directly in case of immediate requirement and local vendor. Especially in case of mobiles the material comes against invoice. Generally at store material is received against S.T.N. Material is received from vendor against invoice by following all the rules of S.O.P. Firstly gate keeper check all the documents necessary at the gate & compare the material with the invoice. Paper check1. Receiving site 2. Supplying site 3. Invoice no. 4. H.U. no. 5. Material on paper 6. Gate pass 7. Cartoon counting

Gate keeper sign & stamp the document (invoice copy and purchase order copy) .After that transfer the material to store ware house where G.R.N. of the material is done after scanning by the ware house person. This G.R.N. no. is written on the invoice copy with date and quantity .According to S.O.P., date of receiving has been written on the cartoon received by the ware house person .Scanning of the material is done against each EAN no. and article no. in REM as well as in SAP. An inward register is maintained by the ware house people as well as by the security guard to keep the record of the inward material. Then after counting of material, it is send to the store to sell. For the security purpose security tags stitched on the material. Different types of tags with sensor are punched on the items. Tags are punched on items having cost more than Rs.99. 1. Hard tags-on cloths(Magnetic tags) 2. String tag-on cloths 3. Soft tags-especially on plastic, crockery, electronics etc. All the material is designed on the Racks and 1. Gandola 2. Gap table 3. D- unit 4. Four arms unit 5. Eight arms unit 6. Step table 7. Bins 8. Hyper bins 9. Wall hanging

V.M. plays an important role in designing and visualization of the material on floor. What is visual merchandisation? Visual merchandisation is briefly defined as presentation of a store and its merchandise in ways that will attract the attention of potential customers and motivates them to make purchase. Purpose of visual merchandising1. Increase turnover

2. Image building 3. Influence buying behavior 4. Satisfy customers Role of visual merchandisingTo put forward the best of merchandise highlight in terms of colour, quality, and price in the most aesthetically appealing way with 100% clarity. To ensure that all the information is communicated in an informed, friendly and helpful and selling mode. Arranged merchandise Easy to find Easy to pick

Aesthetically pleasing

Easy to buy 4. Documents to commercialAfter the whole process in Big Bazaar (Mumbai) store ware house, the entire documents send to local commercial office for the payment purpose as well as for the record. Commercial people maintain a MIRO sheet and send this sheet to head office where category and commercial make cheque and send to local commercial and then commercial pay to the vendor only by cheque. Payment by the local commercial is done only in case of invoice. 5. Receiving of the material at the central ware house (C.D.C.) Mumbai Material is delivered (out ward) by vendor to the CDC Mumbai (central ware house) by the hired transporter with all the documentation. This time transporter is at the expense of vendor. Material is received by the central ware house C.D.C. Mumbai by follow all the rules of S.O.P. After that they do in warding off the material followed by racking,

segregation & out ward the material to nearest located store(Big Bazaar Mumbai in this case) against S.T.O. In case of Big Bazaar (Mumbai) the stock comes from central ware house C.D.C. Mumbai (Dewas Naka). Receiving of the material is done by the security in the ware house. First of all documents are matched with the material. L.R. no. on the consignee copy should match with L.R. no. on cartoons. Material is weighed by the security person at the receiving gate and actual weight is been written on the P.O.D. and consignee copy. This is for the reason that we pay to the vendor according to this actual weight. After that we fill all the information in SAP and generate inbound register no. and write this no. on inward register. Then security stamp on POD copy and return it to transporter. Then material is send inside for pre in warding, where scanning of the material is done. Post in warding is the next step in which we do the G.R.N. of the material and forward this material for the segregation .After segregation all the material is designed on the racks. 6. Out warding of the material from central ware house to the store, after receiving S.T.O. from the storeCentral ware house people outward the material after receiving S.T.O. from the Big Bazaar store. Ware house people generate the S.T.N. document and after packing of the material they stick new H.U. no. on the cartoons (on which information and description of the material is given) and load this material in the truck to deliver to the store. They send the copy of S.T.N. and gate pass with the material to the store. 7. Document sends to commercialAll the documents received by the central ware house people should send to local commercial for the payment purpose as well as for the record before outing of the material.

Just in Time at McDonalds

McDonalds is considered a JIT inventory operation meaning "Just in Time" another company that uses this same technique, is Dell. This means that McDonald's doesn't begin to cook or reheat food until a customer has placed a specific order. This prevents extra food from being used and cuts cost because inventory can still be kept and not thrown out. There are two major parts to JIT inventory operation

One is lowering the ratio between ordering costs and holding costs, and shortening lead times. The results is an operation with high holding costs, and that ordering very small batches very frequently is the most profitable solution. This allows McDonalds to eliminate average inventory above the safety stock level. Then if lead times begin to decrease safety stock can be decreased. The result is inventory coming "just in time." What used to be the case was McDonald's would pre-cook a batch of hamburgers and let them sit under heat lamps. They would keep them for as long as possible and eventually discard what couldn't be sold. The only way to get a fresh hamburger under the old system was to make a special order. Now, due to more sophisticated burger-making technology (including a record-breaking bun toaster), McDonald's is able to make food fast enough to wait until it's been ordered. The biggest benefit McDonalds sees out of running their inventory this way is better food at a lower cost. They also improve customer service because it allows special orders to be made correctly and it does not cause delays.

McDonalds is obviously a huge company and is run very well. They operate over 31,000 restaurants worldwide, and employ more than 1.5 million people. With these kinds of numbers it becomes even clearer that the McDonalds Franchise is a very successful one and we personally feel without their inventory running so smoothly this would not be possible.

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