Big Bazaar Financial Supply Chain Management

SUBMITTED BY V E N K ATA A S H O K 11 P G P 0 4 4

Big Bazaar
Retail chain operating across 8 metropolitans and eighty cities

and towns in India (2009)

Foot fall of 200 million (2009) Over 3.5 million Stock Keeping Units (SKUs) 30,000 small, medium and large suppliers 11 bankers overall India

Payments
30000 (suppliers) X 11 (banks) possible channels of payments

Upstream
150(stores)X80(cities) possibilities Downstream Majority of the suppliers are based out of India Collaborative cost reduction, supply chain wide is the aim

Current practice
Buyers and suppliers across the chain manage their funds

independently
They pass on the costs in supply chain Resulted in higher interest rates for capital Tesco, Oriental insurance and Laird Technologies have

implemented FSCM solutions

Supply Chain

Physical Supply Chain Process

Suppliers
Big Bazaar sources mainly from domestic suppliers, about 80%

supplies are domestic and the rest 20% are international suppliers.
There are about 30000 small, medium and large suppliers, and

Big Bazaar has contracts with various service providers to deliver the products.
In addition Big Bazaar relies on the Future Supply Chains

Financial Supply Chain

Management of the cash flowing between parties within the

supply chain, in the form of payment or short term finance

The major activities include
Payments

and cash management Working capital management and supply chain finance Risk management Process improvement Business intelligence

Payments & Receivables

Payments

Through Cheque or electronically Electronic - Funds get credited immediately minimal time lag

Receivables

Cash or card In all the card based transactions the amount gets credited directly to the Big Bazaar account

FSCM
Working capital management individual based in supply chain Letter of credit issued by large banks Process improvement - Data exchange between supply chain

partners
Business intelligence Important inputs for cost reduction and

effectiveness

References
http://hbr.org/product/big-bazaar/an/606099-PDF-ENG http://www.wrap.org.uk/business/retail_supply_chain.html http://www.supply-chain.org