SUPPLY CHAIN MANAGEMENT- BIG BAZAAR

STUDY ON
SUPPLY CHAIN MANAGEMENT
OF
BIG BAZAAR
Submitted To: Submitted By:
Prof. Deepali Bhardwaj
FORE SCHOOL OF MANAGEMENT NE! DELHI
1
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
ACKNOWLEDGEMENT
We take this opportunity to express our gratitude and acknowledge the
assistance and guidance of all the members without whom the project would
not have been successfully accomplished.
We would like to express our gratitude to Prof. for her guidance, supervision
and cooperation to mould our skills and helping in the successful completion
of the project.
And last but not least, our fellow team members who have supported one
another throughout the course of the project.
2
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
Table of Co!e!"
A!"#W$%&'%(%")................................................................................................. 2
1. *")+#&,)*#"....................................................................................................... -
1.1 .*' .A/AA+...................................................................................................... -
1.2 0,11$2 3A*" (A"A'%(%")4...........................................................................-
1.5 0,11$2 3A*" 1+#%00 A) .*' .A/AA+...........................................................6
2. A01%)0 #7 *(1$%(%")A)*#"...............................................................................8
2.1 #+'A"*/A)*#"A$ 7A)#+0..............................................................................8
2.2 )%3"#$#'*A$ 7A)#+0................................................................................ 8
2.5 (A"A'%(%") 7A)#+0.................................................................................... 8
5. *(1$%(%")A)*#" #7 *"7#+(A)*#" 020)%(..........................................................9
5.1 *")+#&,)*#"................................................................................................. 9
5.2 0#1% #7 *(1$%(%")*"' *"7#+(A)*#" 020)%(.............................................9
5.5 *(1A).............................................................................................................. 9
5.: 3#W (*0 3%$10 (A"A'%+............................................................................... 9
5.- 3#W *) 3%$10 )3% %")*+% #+'A"*/A)*#";.....................................................<
5.6 A+3*)%),+% &%1$#2%&................................................................................ <
5.8 7,")*#"0 #7 (*0.......................................................................................... 1=
5.9 .%"3(A+!*"' #7 )3% (*0........................................................................... 11
:. 0)+A)%'*%0, *"*)*A)*>%0 A"& .,0*"%00 .%"%7*)0.............................................12
:.1 .+*! A"& $*! (#&%$4............................................................................... 12
:.2 *"*)*A)*>%0 )A!%" .2 .*' .A/AA+4................................................................12
:.2.1 1+#&,) (*?4........................................................................................... 12
:.2.2 1+*%4........................................................................................................ 15
:.5 0)+A)%'*%0..................................................................................................... 1:
-. A"A$20*0 #7 0( (#&%$..................................................................................... 16
-.1 A&>A")A'%0 #7 0( (#&%$4........................................................................16
-.1.1 (A"A'%(%") 1#*") #7 >*%W4.................................................................16
-.1.2 ,0)#(%+ 1#*") #7 >*%W.......................................................................16
-.2 &*0A&>A")A'%0 #7 0( (#&%$4...................................................................18
-.5 1%0) A"A$20*04............................................................................................... 18
-.5.1 1#$*)*A$ 7A)#+0.................................................................................. 18
-.5.2 %#"#(* 7A)#+0................................................................................. 18
5
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
-.5.5 0#*#@ ,$),+A$ 7A)#+0......................................................................18
-.5.: )%3"#$#'*A$ 7A)#+0........................................................................18
-.: 0W#) A"A$20*0............................................................................................... 19
-.- 1#+)%+A0 7*>% 7#+%0 A"A$20*0...................................................................19
6. 7,),+% 1$A"0 A"& +%#((%"&A)*#"0............................................................1<
6.1 ,0A'% #7 2@& .A+#&% 0A""%+0...............................................................1<
6.2 *">%")#+2 *0 )3% *00,%4............................................................................... 1<
6.5 W(0................................................................................................................ 2=
6.: %@)A*$*"'......................................................................................................... 2=
6.- A,)#(A)% 2#,+ .,0*"%00............................................................................ 2=
6.6 )A!% 2#,+ .,0*"%00 %>%+2W3%+%...............................................................2=
6.8 *"+%A0*"' >*0*.*$*)2 W*)3*" 0,11$2 3A*"................................................2=
8..,0*"%00 .%"%7*)04............................................................................................. 21
8.1 .%"%7*)0 #7 (*0 *(1$%(%")A)*#" *" .*' .A/AA+4...................................21
9. #(1A+A)*>% 0),&2............................................................................................ 22
9.1 1+#,+%(%") A"& &*0)+*.,)*#"................................................................22
9.1.1 WA$(A+).................................................................................................. 22
9.1.2 .*' .A/AA+.............................................................................................. 22
9.2 $#'*0)*0 (A"A'%(%")................................................................................ 22
9.2.1 WA$(A+).................................................................................................. 22
9.2.2 .*' .A/AA+.............................................................................................. 22
9.5 *">%")#+2 (A"A'%(%").............................................................................. 22
9.5.1 WA$(A+).................................................................................................. 22
9.5.2 .*' .A/AA+.............................................................................................. 25
9.5.5 01%"%+A0................................................................................................ 25
9.5.: A&*)2A .*+$A +%)A*$................................................................................. 25
<. .*.$#'+A132....................................................................................................... 2:
:
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
#. INTRODUCTION
#.# BIG BAZAAR
B$% Ba&aar was introduced by the 7uture 'roup in 0eptember 2==1 with the
opening of its Brst four stores in !olkata, *ndore, .engaluru and 3yderabad within a
period of 22 days. 0tarted by !ishore .iyani, .ig .aCaar was launched mainly as a
fashion format selling apparel, cosmetics, accessories and general merchandise.
#ver the years, the retail chain has included in its portfolio a wide range of products
and services, ranging from grocery to electronics.
.ig .aCaar is the largest hypermarket chain in *ndia now. As of Dune 2, 2=12 there
are '#( "!ore" a)ro"" *+ )$!$e" and towns in *ndia covering around 16 million
sE.ft of retail space. .ig .aCaar is designed as an agglomeration of baCaars or
*ndian markets with clusters oFering a wide range of merchandise including fashion
and apparels, food products, general merchandise, furniture, electronics, books, fast
food and leisure and entertainment sections.
*n 2==-, .ig .aCaar initiated the implementation of 0A1 and pilots a +7*& project at
its central warehouse in )arapur.
*n 2==8, .ig .aCaar partnered with a shopping portal 7uturebaCaar.com and
expanded its retail footprint to -= stores.
*n 2=12, .ig .aCaar entered into a Bve year multi@million dollar deal with ogniCant
)echnology 0olutions for *) infrastructure services that support 7uture 'roupGs
network of stores, warehouses, oHces, and data centers.
#.' SUPPLY CHAIN MANAGEMENT,
A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and Bnished products, and the distribution of these Bnished products
to customers. 0upply chains exist in both service and manufacturing organiCations,
although the complexity of the chain may vary greatly from industry to industry and
Brm to Brm.
)here is a strong need for a mechanismI strategy through which diFerent functions
like manufacturing, planning, distribution and purchasing can be integrated
together. A supply chain may include a variety of stages4
a. ustomer
b. +etailer
c. &istributor
d. (anufacturer
e. omponentI (aterial supplier
-
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
#.- SUPPLY CHAIN PROCESS AT BIG BAZAAR
)he supply chain of .ig .aCaar is managed by 7uture 0upply hain. *ts
transportation capability enables it to implement 7actory@'ate logistics involving
pick@up of goods from vendors across the country, national distribution of goods and
city logistics that includes store deliveries and home deliveries. .ig .aCaarAs supply
chains is the Brst organiCed intra@city transportation services company in *ndia@
carrying out not only .2. deliveries but also .2 deliveries in the form of thousands
of home deliveries every day across the country.
.ig .aCaar derives signiBcant economies of scale in managing their supply chain
and tends to increase its revenues and proBtability by lowering J)ime@to@marketA
and Jost@to@marketA delivery of products. With more than 1,8=,=== products, the
companyAs objective is to eFectively plan the strategies, supply and demand of its
huge product line.
'. ASPECTS O. IMPLEMENTATION
6
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
'.# ORGANIZATIONAL .ACTORS
 )he management implemented close to 5== crores in improving the *)
infrastructure in the last : years.
 )he organiCation created a separate company i.e. 7uture 0upply hain, which
handled the groups entire supply chain management.
 )he staF were trained to use high end technology .%very worker uses a hand
held scanner which costs around +s. 6====.
 )here was a change in the decisions like outsourcing logistics to increasing
their own Keet of trucks to improve eHciency.
'.' TECHNOLOGICAL .ACTORS
 ,se of latest technology like +7*& has enhanced transparency of their supply
chain and hence will help them minimiCe cost and labor and will strengthen
inventory control.
 .ig .aCaar implemented %+1@ 0A1 in 2==9 along with >endor +elationship
(anagement 0ystem L>+(0M and the )ransport (anagement system in 2==<.
)his was followed by 1ut to $ight system in 2=1=. >)0I'10 system in 2=11.
 )his has increased their throughput at every warehouse from 2=@5=! pieces
to a Bgure of over 1 lakh pieces. )heir "agpur & matched global standards
when it churned out 2,-=,=== pieces of apparel in a single day.
 7inally, companies often lack in@house experts with the knowledge to
implement +7*& technology and hiring outside experts can be diHcult and
expensive.
'.- MANAGEMENT .ACTORS
 )he automatic replenishment system enables much Euicker and accurate
data regarding managing inventory.
 0tructured salary, database and wage records.
 )he management can forecast future demands with more accuracy.
 Automated systems have reduced costs of labor and human resource
management.
-. IMPLEMENTATION O. IN.ORMATION SYSTEM
-.# INTRODUCTION
An *nformation system is a system that takes resources as input and processes
them into information product as output. *nformation system is an organiCed
combination of people, hardware, software, network and data resources.
8
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
-.' SCOPE O. IMPLEMENTING IN.ORMATION SYSTEM
 (*0 is primarily concerned with the delivery of information Lboth internal and
externalM to organiCational members from the shop Koor workers to the
management.
 )o help the smooth running of the business by providing information on the
Brms data Lsuch as accounting BguresM employees from diFerent levels will
then evaluate this information so that decisions can be made to ensure that
the business remains competitive and successful.
 (*0 have been created to support the whole range of businessAs
administration and regulatory activities.
 (*0 systems need to be able to cope with these changes and the managers
need to ensure that they are receiving the correct information, which will
allow them to deal with these changes and make decisions accordingly.
-.- IMPACT
 (anages technology, people and data Linformation for decision makingM
 communication and planning tool
 customer data and feedback
 %Hcient 0upply chain management and logistics.
 %@ commerce
 *mplemented 0A1 in 2==-
-.( HOW MIS HELPS MANAGER
 *t helps to know details about the daily transaction.
 )o easily calculate proBt and loss.
 )o take decision Euick and accurate with the help of (*0.
 )o know the regularity of the employees.
 )hey use a storing device to store all transaction per day.
-./ HOW IT HELPS THE ENTIRE ORGANIZATION0
9
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
-.1 ARCHITECTURE DEPLOYED
-.2 .UNCTIONS O. MIS
)wo centraliCed servers are used by the (*0 viC.
<
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
 )he main server and the other a backup server which can take over from the
main server with@in - min, if there is any problem.
 %ach of the servers has its own storage system with mirroring hard disks L1-
hard disks storing the same info simultaneouslyM.
 )he information is backed up continuously on &s every day. )he entire
system is backed by an excellent electrical wiring by D& *nternational
Lelectrical maintenance dept.M.
 .ig baCaar runs 0A1 Lone of the leading %+1 solution provider. %+1 means
enterprise resource planning@ a software solution for various activities like
inventory management, billing, supply chain management etc.M
 %@"axos &ata'en is a test data generator that can Bll a database with
meaningful random data to test the behavior of an existing customer.
&atabase is formed through the issue of future card and card is of three types
silver card, gold card and sakthi card. 0akthi card is issued to ladies and this
card provides, free sugar L1 kgM per month.
 )here are 1- transaction counters in .ig .aCaar. )he recording of transactions
at each of these counters is done using +%(.
 )he database used for the storage is called 1#03 database and this is an
in@house production of .ig .aCaar.
 )hese transaction counters can capture credit card details and customer
information of big customers Lthough all the information relating to all the
customers is not collected as of nowM.
 +eceipts of transactions are cash, credit or in the form of 0odexo passes. )he
0odexho passes are sent to the 3N on a monthly basis and converted to
cash.
 )he number of transactions made per day varies from 5===@ :=== on week
days to about -===@ 6=== on weekends. Any transaction recorded at each
terminal is stored directly onto the 1#03 database.
 #racle Bnance4 a package from oracle is used for this purpose.
 )he Bnancials are sent to the 3# on a daily basis.
 >ehicle tracking abilities '10I'1+0 to continuously evaluate the time to
destination.
1=
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
-.3 BENCHMARKING O. THE MIS
)he following parameters can be used for benchmarking the system.
 7oundation data and analytics
 .illing (anagement
 $abor (anagement
 Warehouse management
 *tem and price synchroniCation solution
 )ransportation 1rocurement
 0upplier %nablement
 *ntegration 1latform
11
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
(. STRATEGIES4 INITIATI5ES AND BUSINESS BENE.ITS
(.# BRICK AND CLICK MODEL,
.ricks@and@clicks is a business model by which a company integrates both oOine
LbricksM and online LclicksM presences. *t is also known as click@and@mortar or clicks@
and@bricks, as well as bricks, clicks and Kips, Kips referring to catalogs.
(.' INITIATI5ES TAKEN BY BIG BAZAAR,
(.'.# PRODUCT MI6,
 >arious in@house brands are promoted. L1rivate $abelsM
 1roducts of all the major brands are available at .ig .aCaar
12
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
 1rovides .est 1roducts at the .est 1rices.
 .ig .aCaar sold over 5==,=== pairs of jeans, -=,=== &>& players and 2-,===
microwave@ovens. *n all, the fashion, electronics and travel segments made
up about 8=P of sales. $ast year, these categories made up about 65P.
(.'.' PRICE,
)he tag@line is QI" "e "a"!a a7r a))8a a7r 9a8$ a8$R. )hey work on the model
of economics of scale. )here pricing objective is to get Q(aximum (arket 0hareR.
)he various techniEues used at .ig .aCaar are4 @
 >alue 1ricing
 1romotional 1ricing
 $ow interest Bnancing
 1sychological discounting
 0pecial event pricing
 &iFerentiated 1ricing
 )ime pricing
 .undling
 5al7e Pr$)$% :EDLP ; E<er= Da= Lo> Pr$)$%?, .ig .aCaar promises
consumers the lowest available price without coupon clipping, waiting for
discount promotions, or comparison shopping.
 Pro@o!$oal Pr$)$%4 .ig .aCaar oFers Bnancing at low interest rate. )he
concept of psychological discounting L+s. <<, +s. :<, etc.M is used as
promotional tool. .ig .aCaar also caters on 0pecial %vent 1ricing Llose to
&iwali, 'udi 1adva, and &urga 1oojaM.
15
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
 D$Aere!$a!eB Pr$)$%4 )ime pricing, i.e., diFerence in rate based on peak
and non@peak hours or days of shopping is also a pricing techniEue used in
*ndian retail, which is aggressively used by .ig .aCaar.
 B7Bl$%4 0elling combo@packs and oFering discount to customers. )he
combo@packs add value to customer.
(.- STRATEGIES
 Ba)9-eB OCera!$o"4 S7CCl= C8a$4 3arvard .usiness 0chool just did a
case study on 7uture 'roupA 0upply hain and it says that 7uture 'roupA is
the most cost@eFective supply chain in the world. *ndia may not have a
modern supply chain but it deBnitely has a cost@eFective one.
 R$%8! ProB7)! M$D4 )o overcome lower gross margins of 1= to 12P on 7ood
S 'rocery L7S'M, retailers are trying to optimiCe the product mix of 7S' and
'eneral merchandise. A product mix comprising :=P food and 6=P of non@
food could enhance gross margins to a respectable 19@1<P. .ig .aCaar is
able to do even better with 65P of non@food.
1:
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
 More No-fooB D$"Cla=4 3igher non@food sales are achieved by allocating
higher shelf and display space. 7ood display space is restricted to around
2=P. )his works, because shoppers, in any case, are there to shop for food
items.
 S!ore Label"4 3ypermarkets are also working hard to discourage sales of
branded products. )hey are promoting their own labels, thoughT it is not easy
to promote them beyond a point due to strong customer brand loyalties for a
class of goods, such as, 7('. .ig .aCaar has been able to touch only 1-P.
1-
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
/. ANALYSIS O. SCM MODEL
)he 0upply hain (odel adopted by .ig .aCaar has redeBned the *ndian +etail
'ame. )he model has been fairly successful since its implementation as 7uture
0upply hain in 2==8. )he major reasons for success of the model are4
 ompetent and experienced management.
 *nvestments to the tune of +s. :== crores in the 0upply hain.
 Adoption of successful 0upply chain models from diFerent industries for
diFerent products.
 onstruction of large &istribution enters and warehouses on the outskirts of
metropolitan cities.
 +eal@time monitoring of )ransportation units like trucks.
 *nstallation of software applications for managing warehouses viC. %+1,
Warehouse (anagement 0ystem, onveyor 0ystem etc.
 Allotment of handheld scanners to each employee for Euicker business
processes.
/.# AD5ANTAGES O. SCM MODEL,
/.#.# Maa%e@e! Po$! of 5$e>,
 %ase of (anagement4
 *nventory control and reorder level checks is easier due to be an
automatic inventory control system.
 0alary and wage administration, &atabase management and pay order are
also systematic.
 1reparation of revenue reports, employeesG performance record etc. is more
Kexible.
 entraliCed (anagement@ Accounts.
 larity in reading .ill details.
/.#.' CUSTOMER POINT O. 5IEW
 ustomer 1ayback card
 )2: 0*( cards for loyal customers
 %asy acceptance of payments and )ime saving
 7aster ustomer heck out
/.' DISAD5ANTAGES O. SCM MODEL,
 (anual )asks being computeriCed leads to loss of Dob opportunities.
 )he warehouse module is semi mechaniCed and there is no seamless
integration platform.
16
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
 1ossibility of unauthoriCed access and snooping
 +eliability on *) may hinder the functioning in case of network or power
failure.
/.- PEST ANALYSIS,
/.-.# POLITICAL .ACTORS
 A stable government was present while setting up the 0( (odel.
 .ureaucracy problems and hurdles in setting up Warehousing and &istribution
enters.
/.-.' ECONOMIC .ACTORS
 %conomic growth has slowed down in *ndia after 2==8.
 )he retail *ndustry makes up 16 P of the '.&.1.
 )he *ndian retail industry is estimated to ,0U :-= billion.
/.-.- SOCIO- CULTURAL .ACTORS
 *ncrease in "uclear families
 1eople prefer to shop in local stores with the reasonable prices
 *ncrease in working womenAs proposition
 $ife style changes
 0hift in 1roduct and service preferences
 *ncrease in 2oung population
/.-.( TECHNOLOGICAL .ACTORS
 )echnological development for fast billing and the service.
 .etter applications of information technology in the modern retail industry,
like in supply chain management, store management, point of sale and
customer relationship management.
/.( SWOT ANALYSIS
STRENGHTS WEAKNESSES
• 0trong Bnancial backing. • 0( (odel yet to evolve.
• *ncrease in materialistic
approach amongst *ndian
people.
• 1ush based model being
followed as of now.
18
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
• Nuality infrastructure.
OPPORTUNITIES THREATS
• +etail industry comprises
16P of '.&.1.
•ompetitors like Wal(art,
arrefour and *!%A.
• 'rowing preference for
organiCed shopping among
the people.
• .ureaucracy hurdles.

• ,norganiCed retail still
dominant in major regions.
/./ PORTERES .I5E .ORCES ANALYSIS
19
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
1. .UTURE PLANS AND RECOMMENDATIONS
1.# USAGE O. '-D BARCODE SCANNERS
Dust a handful of electronics component manufacturers and distributors are using
two@dimensional L2@&M barcodes, but use of the scanning technology will rise
steadily because it improves eHciency in the handling and shipment of parts.
*n electronics, barcodes are embedded with information such as part number,
purchase order number, lot code, date code, Euantity and country of origin.
)wo@dimensional bar codes diFer from 1@& codes. A 2@& barcode is a sEuare image,
while 1@& barcodes consist of a series of black and white lines. )he advantage is 2@&
barcodes can be embedded with much more information than 1@& barcodes in a
smaller space. *n addition, 2@& barcodes only need to be scanned once, while 1@&
barcodes need to be scanned multiple times because each line has to be scanned
separately.
1.' IN5ENTORY IS THE ISSUE,
*nventory levels, not transportation costs, drive supply chain savings. 7or most
manufactured products, transportation is only two to Bve percent of total cost. *n
contrast, raw materials, components, and subassemblies typically constitute -- to
8- percent of total cost.
)his reality helps explain why large cost savings result from complete supply chain
solutions that reduce raw material and Bnished goods inventories.
urrent economic pressures, however, are causing some companies to buy
transportation for the lowest possible price and neglect inventory management.
(is@management and mis@measurement are two factors encouraging this
dysfunctional behavior. (ost companies concentrate on reducing transportation
costs because that goal Bts how they manage. %ven today, most transportation
departments are cost centers that are not involved with inventory management. 7or
them, success is deBned as negotiating greater discounts from carriers.
ompanies that concentrate on optimiCing transportation discounts miss out on
larger inventory savings. )hese companies often trade down on service levels. )he
most common strategies are to ship less often or to switch to slower, less@reliable
modes. %ach of these actions increases inventory holdings. )he costs of this extra
inventory more than oFset any transportation savings. )hus, cutting transportation
costs is a sub@optimiCation that produces false savings.
Another reason why companies focus on reducing transportation costs is that
changes are easily measured. *n contrast, measuring amounts of inventory and
calculating changes in inventory carrying costs are much more diHcult tasks.
ompanies often fail to go after inventory savings simply because they cannot
measure the amount of inventory in their supply chain.
1<
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
1.- WMS
Warehouse (anagement 0ystem LW(0M has enabled cross docking, reduced
staHng, eEuipment needs, space reEuirements, and inventory carrying costs. *t has
improved #rder 7ulBllment and Accuracy $evels. W(0 has also enabled complete
ubic $evel >isibility of *nventory.
1ut@ to@ $ight 0ortation 0ystem, Brst of its kind in *ndia, has substantially improved
#rder 1rocessing apacity and 0peed and Accuracy in 0ortation.
Automation through onveyor 0ystems, 1rint S Apply and Weigh heck 0ystems
ensure 1==P inward and dispatch Accuracy.
1.( E-TAILING
*nventory risk is smaller due to the real@time models that are possible in e@tailing.
#n the whole, supply chain and inventory costs in e@tailing are slightly lower than
retailing.
1./ AUTOMATE YOUR BUSINESS
7or most business tasks, the general rule is that it doesnAt cost much if a machine is
doing it for you.
Whether youAre processing sales or managing your supply chain, reducing the
Qhuman timeR you need to invest in executing tasks not only makes them faster,
but allows you to work more productively elsewhere.
A well@designed %nterprise +esource 1lanning L%+1M system is key here V performing
the grunt work that will help you to productively manage everything from inventory
to Bnancials and payroll management.
1.1 TAKE YOUR BUSINESS E5ERYWHERE
(any businesses are currently using mobility to secure siCeable productivity gains,
especially in the area of customer relationships.
)he ability to have real@time information and functionality on hand when dealing
with customers makes your time with them Land their experience with your
businessM more productive and eFective.
*f youAre yet to Qgo mobileR V either through a custom system or one provided with
your ustomer +elationship (anagement L+(M software. *n a similar vein, online
customer self@service is also worth considering as a means of more productively
processing orders without staF intervention.
2=
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
1.2 INCREASING 5ISIBILITY WITHIN SUPPLY CHAIN
+eal@time data is the key here and using technology to obtain critical information
will speed up business decisions. )o have full visibility it is necessary to analyCe
every order for every customer to establish the revenue for each product. !nowing
which products are not proBtable means plans can be made to discontinue these
lines or dispose of them.
8. .,0*"%00 .%"%7*)04
 'ained and mastered art of managing the food supply chain due to its
association with 7ood .aCaar.
 *n house expertise to manage perishable L 7ruits and vegetables, dairy
,meat, poultry, .akery M and non@perishable L 7('@7ood, 0taples, 1rocessed
foodM
 0tate of the art warehouses across the nation which can cater to the
customiCed needs.
 A strong in@house transportation department with Keet of vehicles for every
need and type.
 Availability of most advanced warehouse management system which would
ensure all aspects like 7*7, $ot management, product traceability, product
recalls.
 Availability of transport management system with vehicle tracking facilities to
track product movement at every stage of transportation L +eal time
visibilityM
 )he eFectiveness of the *0 is greatly brought by the eHcient supply chain and
delivery system that big baCar have.
2.# BENE.ITS O. MIS IMPLEMENTATION IN BIG BAZAAR,
 Able to highlight the strength and weakness due to the presence of revenue
reports, employeeAs performance report etc.
 'iving an overall picture of the company and act as a communication tool.
 Availability of customer data and feedback can help the company to align
their business process according to their customer needs.
21
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
 )he consumer buying trends and behaviors can be predicted by the analysis
of sales and revenue reports of each operating region of the company.
3. COMPARATI5E STUDY
3.# PROCUREMENT AND DISTRIBUTION
3.#.# WALMART
Wal@(art had initiated its plan to employ +7*& technology in its supply chain in Dune
2==5.3aving the largest retailer adopt and begin to use +7*& technology has given
strong backing to the technology and will only further and Euicken the expansion of
+7*&. )hey have begun reEuiring all their major suppliers to implement +7*&
technology on all products supplied to Wal@(art.
3.#.' BIG BAZAAR
*n 2==-, 7uture 'roup *nitiates the implementation of 0A1 and pilots a +7*& project
at its central warehouse in )arapur. )he investment in the +7*& technology was
close to +s 2== crore. *t will help the company to track inventory, automate billing
and reduce thefts.
3.' LOGISTICS MANAGEMENT
3.'.# WALMART
(ore than 8=== company owned trucks services the distribution centers. )hese
dedicated truck Keets enables shipping of goods from distribution centers to the
stores within 2 days and replenish the store shelves twice a week.
Wal@(art uses a logistics techniEue called FCro"" Do)9$%G. *n this system,
Bnished goods are directly picked up from the manufacturing site of supplier, sorted
out and directly supplied to the customers. )his system reduces handling S storage
of Bnished goods, virtually eliminating role of distribution centers S stores. .ecause
of Qcross@dockingR the system shifted from Qsupply chainR to Qdemand chainR which
meant, instead of retailers JpushingA the products into the system, the customers
could JpullA the products, when S where they reEuired.
22
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
3.'.' BIG BAZAAR
*nitially 7uture 'roup had outsourced the transportation services to other
companies, but , later on realiCed this a problem. 3ence they increased their Keet to
1=== trucks.
3.- IN5ENTORY MANAGEMENT
3.-.# WALMART
7or this, Wal@(art set up its own satellite communication system in 1<95. )his
allowed the management to monitor each and every activity going on in a particular
store at any point of the day and analyCe the course of action taken depending on
how the things went. Wal@(art owns the Q(assively 1arallel 1rocessor L(11MR,
largest S the most sophisticated computer system in private sector, which enables
it to easily track movement of goods S stock levels across all distribution centers
and stores.
3.-.' BIG BAZAAR
*mplementation of theWarehouse (anagement 0ystem LW(0M. *t tracks and controls
the Kow of Bnished goods from distribution centers to its customers. Acting on
shipping plans for customer orders, the W(0 directs the movement of goods based
on immediate conditions for space, eEuipment, inventory and personnel.
Q1ut )o $ight 0ortation 0ystemR at distribution chains helps to sort large number of
products to hundredsof 7uture group stores. *t is not possible for human beings to
sort such large orders.
3.-.- SPENCERES
)heir warehouses run the Warehouse (anagement 0ystem LW(0M from 0A1 for
managing transactions within the warehouse. 7urther, they have enabled the
warehouse with +adio 7reEuency to ensure that the receipts, put@away, picking and
dispatch operations can be carried out on wireless hand@held terminals. )hey are
also working with our suppliers on various collaboration initiatives.
3.-.( ADITYA BIRLA RETAIL
)hey use software called +%)%! that streamlines all aspects of retail including
planning, merchandising and supply chain. )hey have also used *) applications for
faster receiving and loading and alert stores on truck arrival timings.
25
SUPPLY CHAIN MANAGEMENT- BIG BAZAAR
*. BIBLOGRAPHY
1. http4IIwww.mirnah.comIimagesIWhiteW1apersI)rendsW0upplyhainI)op1=)echW
wp.pdf
2. http4IIwww.inboundlogistics.comIcmsIarticleIreducing@supply@chain@costs@
spend@more@to@save@moreI
5. http4IIwww.futuresupplychains.comIindex.aspx
:. http4IIwww.smartcompany.com.auIit@means@businessI=:9==5@using@it@to@
increase@productivity@:.html
2: