Supply Chain Decisions

Group 1 PRN 01,02,56,57,61

Introduction

About Big Bazaar

Hyper mart Chain of development store in India

Outlets
Parent group Owner

More than 133 outlets Located in India

Future group Kishore Biyani (CEO)

Founded
Head quarter

2001
Jogeswari , Mumbai

Industry
website

Retail
www.bigbazar.com

Tag line

Is se sasta aur achha kahin nahi.

Mission and Vision

VISION Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner. MISSION We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.

Positioning and Segmenting

Big Bazaar targets higher and upper middle class customers. The large and growing young working population is a preferred customer segment. Big Bazaar specifically targets working women and home makers who are the primary decision makers.

Product Mix
APPARELS Denims & TShirts Fabric & Cut piece Formal Wear Casual Wear Party Wear Ethnic Wear Accessories Under Garments Night Wear Dress Materials Sarees FOOD Staples Ready to eat Ready to cook International Food Spices Imported Bazaar Tea & Coffee FARM PRODUCT Fruits Vegetables Imported Fruits Dairy Products CHILL STATION Soft Drinks Packaged Juices Milk Items Frozen Foods Ice Creams HOME & PERSONAL CARE Shampoos Detergents Soaps Liquid wash Creams Deodorants Home cleaners Utensils Plastics Crockery Sundries

Product MixContd
ELECTRONICS BAZAAR Television sets Washing Machines Refrigerator Personal Care mBazaar Microwaves Small Appliances Laptops Computer Accessories Kitchen Appliances FASHION & JEWELLERY Footwear Bazaar Beauty Care Navara Star Parivar Meena Bindre FURNITURE BAZAAR Living Room Bed Room Kitchen Dinning Rooms Kids Room Been Bags Paintings Decorative Items

Child Care
Kids Wear Toy Bazaar Stationary Child Care

OTHER SERVICES Mr. right Bakery Loot Mart Tulsi Future Money Future Generally

Price Mix
Value pricing Promotional pricing Low interest financing Psychological discounting Special event pricing Differentiated Pricing Time pricing Bundling

Supply chain Importance in retail

The logistics management cost component in India is as high as 7% -10% against the global average of 4% - 5% of the total retail price Demand for end-to-end logistics solutions far outstrip supply Enables an organized retailer to move or store products moreeffectively Prevents needless movement of goods, vehicles transferring products back and forth; but also frees up storage space for more productive use The Indian customer demands at affordable prices a variety of product mix.

Tnfrastructure are not sufficient so warehousing plays a major role

Flexible supply chain gives competitive advantage

Inventory

Different types of inventory levels for different products Based on FSN Analysis Cycle inventory for FMCG products A days supply of perishable goods Safety stock of 4 piece in case of apparel The order quantity varies from store to store and from item to item In case of stock out in a particular warehouse, the big bazaar can order from the nearest warehouse Central purchasing of certain items gives economies of scale and thus big bazaar is able to compete on the cost

Transportation

Future Logistics handles the logistics function of Big Bazaar along other future group businesses Consolidation of logistics for all the future group business allows to reduce the cost of transport per unit Transportation decisions are linked to inventory decisions Frequent replenishments leading to reduced inventory and hence inventory holding costs Significant economies of scale

Information

Big bazaar intimates the warehouse through the use of HCL 24U Rack LAN. In case of perishable good, the stores directly place orders to the supplier. The warehouse supplies the required stock and keeps its own stock also in check. Warehouse use REM (Retail Enterprise Management) system to facilitate the process Warehouses communicate with each other on a weekly basis to exchange their stock related information

InformationContd

Each warehouse orders in three ways Through the headquarters

Through another big bazaar warehouse

Directly from supplier

The delivery challans are sent to the head quarters every month to keep purchases in check Improved efficiency and responsiveness.