Big Bazaar Copy

8/3/2019 Big Bazaar Copy

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SUPPLY CHAIN MANAGEMENT

AT (BIG BAZAAR)

Submitted by

SIDDHARTH CHANDRA (1021132)

BADRI ALAPATHY (1021109)

GAURAV KANSWAL (1021113)

AMIT PARASHAR (1021103)


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BIG BAZAAR

Big Bazaar is a hypermarket consists of extremely large self-service retail outlet with a

warehouse appearance, currently with 104 outlets in India. It is owned by the Pantaloon

Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart - based in

United States and has considerable success in many Indian cities and small towns. The idea

was pioneered by entrepreneur Kishore Biyani the CEO of Future Group. Currently Big

Bazaar stores are located only in India. It is the biggest and the fastest growing chain of

hypermarket stores and aims at being 350 stores by the end of year 2010.

Tag line- Is se sasta aur achha kahin nahi!Different categories-

1. Apparel, fashion and accessories2. Books and magazines3. Bike and automotive4. Camera and photo5. Desk top, lap top and accessories6. Furniture and decor7. Gift and credit card vouchers8. Health beauty and personal care9. Jewellory and watches10.Kitchen and home appliances11.Mobile and service provider12.Music and mp3 player13.Software cds and vcds14.Toys sports and video games15.Other miscellaneous items


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Big Bazaars Commitment

Our commitment is to deliver sustained growth, through empowered people, acting with

responsibility and building trust with customers. Heres I am explaining what this means:

Sustained Growth is fundamental to motivating and measuring our success. Big Bazaars

quest for sustained growth stimulates innovation, places a value on results, and helps us

understand whether todays actions will contribute to our future. It is about growth of people

and company performance. It prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that you feel will

get the job done, while being consistent with the processes that ensure proper governance and

being mindful of the rest of the companys needs.

Responsibility and Trust form the foundation for healthy growth. Its about earning the

confidence that other people place in us as individuals and as a company. Our responsibility

means we take personal and corporate ownership for all we do, to be good stewards of the

resources entrusted to us. We build trust between ourselves and customers by talking not by

mouth but by our superior customer service and being committed to succeeding together.

Supply Chain Management

Supply chain process

SUPPLIER

MANUFACTURER

TRANSPORTER

RETAILERCUSTOMER


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Supply chain process-

Supplier

Manufacturer

Distributor

Retailer

Customer

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.

Customer order cycle

Procurement cycle

Manufacturing cycle

Replenishment cycle


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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 Bazaar-

In 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 customersa. Market

b. Pricec. sell

2. I.S.C.M.-All processes those are internal to the firm.a. Strategic planning

b. Demand planningc. Supply planningd. Fulfilmente. Field service

3. S.R.M.-All processes that focus on the interface between the firm and its suppliers.a. Source

b. Negotiatec.

Buy

d. Design collaboratione. 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.


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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 documentsReceiving of the material at the central ware

house (C.D.C.) Bangalore

Weighing, counting of cartoons, generation of I.R.

no. by putting information on SAP

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

transporter

Pre in- warding by scanning the material against

the inbound no. by E.A.N. and article no.

Document check by the security at the gate and in

ward register is maintained by following all the

rules of S.O.P.

Compare the material with the documents, stamp

the documents, write information with signature

of the securit and then unload the truck

Transfer of the material to the store ware house


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

warded stock.

Segregation of the material (M.C. wise and

category wise)

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

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.

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

Maintain in ward register by putting all the

required information

Send the stock to the flour as per the requirement

Send all the documents to the commercial office

for the preparation of MIRO sheet (send to head

office for a ment ur ose and for the records


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1) Raising a purchase order to vendor-Big 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 are-

1. Consignee copy2. P.O.D. copy3. Purchase order4. Invoice copy5. A.S.N. copy6. Quality check7. Way bill (Out of state)

Conditions-


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1.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 guidelines-

1. Net weight of the packet should not be more than 25 kg.2. BOPP tapes should be printed3. Packaging with stretched wrapping4. Packaging should be dry5. Label pasted on the packages should be clearly visible

3. Receiving of the material at the Big Bazaar (Bangalore ,kormangla) store with all the

required documents-

Category 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 check-

1. Receiving site2. Supplying site3. Invoice no.4. H.U. no.5. Material on paper6. Gate pass7. Cartoon counting


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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 cloths3. Soft tags-especially on plastic, crockery, electronics etc.

All the material is designed on the Racks and

1. Gandola2. Gap table3. D- unit4. Four arms unit5. Eight arms unit6. Step table7. Bins8. Hyper bins9. Wall hanging

4. Documents to commercial-

After the whole process in Big Bazaar (Bangalore) 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.


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5. Receiving of the material at the central ware house (C.D.C.) bangalore

Material is delivered (out ward) by vendor to the CDC bangalore (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. by follow all the rules of

S.O.P. After that they do in warding of the material followed by racking, segregation & out

ward the material to nearest located store(Big Bazaar Bangalore in this case) against S.T.O.

In case of Big Bazaar (Bangalore) the stock comes from central ware house C.D.C.

Bangalore (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 andactual 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 store-

Central 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 commercial-

All 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


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In the supply chain of Big Bazaar mapping of the vendor is done by negotiating on the price,

quantity and quality. Vendor is provided with a vendor registration no. Category receives the

data of demand of material and makes purchase order to the vendor. Category purchases the

material always in bulk to reduce the cost price of the material. With the help of the diagram

above I want to explain the whole scenario and role of central ware house in the supply chain.

For the storage of the material purchased by the category, they have two options. First they

can make purchase order directly to the central ware houses from where they can deliver the

material to the respective stores. Second they can store the material in the mother distribution

centre or regional distribution centre (if the material is for a specific zone).And can deliver

the material to the respective ware houses and from ware houses to the stores.

If we take the example of C.D.C. Bangalore, supplying stock to Big Bazaar Bangalore,

Suppose category has purchase 1000 pre pack of the formal shirts for the Big Bazaar

Bangalore. Then in this case category will make purchase order directly for the central ware

house Bangalore. Transportation of the material is done at the companys expense. Central

ware house Bangalore will transfer the required stock of the shirts to store (especially 40% of

the stock is transferred to the store; rest of the stock will be transfer at the next need).

But the real supply chain come in to play when category purchase the stock in bulk. In the

above diagram vendor is supplying shirts to all the eleven big bazaar stores.Acoording to the

negotiating terms category have purchase eleven thousand pre pack of shirts for all theseregistered stores in winter season. Then category will generate purchase order to the vendor

for the four central ware houses supplying the stock to these eleven stores. These four central

ware houses control the flow chain of the material for these eleven stores. These central ware

houses will receive the stock and will transfer the required quantity to the stores. Rest of the

quantity will be stored in these ware houses for the future immediate requirement. Material at

the time of need is transferred to the store against S.T.O. These central ware houses control

nearest stores to minimize the expenditure of transportation. Concept of ware housing is to

fulfil immediate requirement and storage of the material.


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Transportation of material in Big bazaar-

Transportation at Big Bazaar expense Transportation at big bazaar expense

Transportation-

1. Transportation is movement of goods from one location to another.

2. Transportation is the main artery of logistics and supply chain management.

Transportation charges paid by the Big Bazaar to the transporter are 17500/month up to 1500kilo meter. If the distance is more than this then 4.50Rs per kilo meter

Concept of ware housing in Big Bazaar-

Ware house is nothing but Companys inventory for meeting immediate customer demand.

Ware houses have a very vital in role in supply chain of retail. High degree of cost efficient

working is essential for retail-chain distribution.

Old Concept of warehouse

1. To store products: finished products raw material.

2. To maintain original quality of store material

3. A static Unit to hold products till sold (Cost Centre)

Ware house 1

Ware house-2

S1

S2

S3

S4

Vendor


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New concept of ware house invented by Big Bazaar-

1. Providing Logistic service in a cost effective manner

2. Making product available at right time, at right place, in right quantity

and quality at right cost


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Purpose of any supply chain management team is to reduce the supply chain or to reduce the

distance of transportation because as the distance increases the cost per unit of the load

moved also increases. In this whole process two types of costs are there. First is the fixed cost

that is the cost which we have already paid to the vendor and second is the variable cost that

may vary from different reasons. But in the above curve this variable cost varies due to

increase in distance travelled by vehicle.

Distribution of stores and ware houses is designed in such a way that transportation charges

reduce to minimum.

Three type of distribution centre in Big Bazaar supply chain-

1. M.D.C. (mother distribution centre) e.g.Tarapure ware house

2. R.D.C. (regional distribution centre) e.g.Hassan garh ware house

3. C.D.C. (centre distribution centre) e.g. Central ware house (Bangalore)


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Central ware house (C.D.C. Bangalore)-

There are ten to twenty central ware house of Big Bazaar in India. C.D.C Bangalore Dewas

naka consists of 70000 square feet area on rent. This ware house start from July23 2007

.These central ware houses are made at the central location of some specific stores. And these

are multipurpose ware houses. For example C.D.C. Bangalore receives the stock from the

vendor as well as from the other ware houses (seasonal stock) and transfer this stock to the

next places where it is required in the supply chain. We have three sites for storing the

material. These sites are made to recognise the place of a particular item. Central ware house

Bangalore pays 3.50 Rs./ square feet rent of the ware house to the 3-PL Indo arya.

Site wise distribution of the material-

1. First site 8648 is consists of apparels(mens,womens and kids),general merchandising(home lenin,utensils,toys,stationary,autoacessories,luggage,plastic,footwear,depots)

2. Second site 8649 consists of winter wears apparels3. Site 6648 consists of home solution retail India Ltd.

Site 8648-

This site in central ware house Bangalore consists of 300000 units, out of which 160000 units are of

G.M. section and 140000 units are of apparels.

1. G.M. (160000 units)-

1. Plastic-600002. Auto accessories,depot,stationary-50003. Luggage-100004. Utensils-200005. Foot wear-200006. Home wear-250007. Sports 100008. Toys-10000

2. Apparels (140000 units)-1. Kids-650002. Mens-45000


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3. Ladies-30000

Site 8649-

This site consists of 550000 units in all out of which 50000 units are of rain wear and

umbrella.

1. Kids-2500002. Mens- 1600003. Ladies-750004. Home wear-15000

PRIL PRIL HSRIL

8649(winter wear season) 8648(G.M.&Apparels)

6648(ELECTRONICS)

31100 square feet 18000 square feet

20900square feet

In central ware house C.D.C. Bangalore we receive the material in three conditions

1. Against S.T.O.- Transfer from other ware house2. In voice-from vendor against purchase order3. R.S.T.O.-seasonal return from all over India

Process in central ware house start with the receiving of the material. Firstly we receive all

the documents from the transporter. Documents are different against all above three cases. In

case of invoice we weigh the boxes and count them also. We match the L.R. no. on box with

the consignee copy. Then after filling all the information in SAP we create an inbound

register no. and PT no. We stamp on P.O.D. copy and write the I.R. no., actual wt., Date, no.


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of boxes, signature of the security guards and return it to the transporter. In case if the boxes

are open during receiving of the material then we write down the condition of box open on

the transporter copy. We note down vehicle no. at the time of receiving also.

Conversion-U.O.M.(unit of measurement)-

Pre pack-same colour, different article, different size

Pre pack is the smallest unit, in this case we have a pre pack of Dj&C shirts have same

colour, different size, different article.

Combination-medium-1, large-2, XL-2, XXL-1

Bag-different colour, same article-

Bag is the mediocre unit between pre pack and cartoon. One bag may be of many pre packs.

One bag has different colour but same article.

Cartoon-

Bigger unit of packing. One cartoon has many bag, many pre pack with same article.

W.M.S. (ware house management sheet)-

Ware house management sheet is formulated to keep the record of all the items present in the

ware house and especially location of those items. When we receive a S.T.O. from a store

then firstly we check the availability of the stock in store by the help of W.M.S. sheet. And

then pickers pick the material from the location given by the W.M.S. sheet.W.M.S. Sheet is

to make the work process easy.

Out warding of the material- Out warding occur only against S.T.O. We receive S.T.O.

from different stores and then create delivery of that S.T.O. and create a pick list (Its a

document).Then we create H.U. no.(cartoon no.) and issue the material by goods issued and

give its print in form of S.T.N.

Scrap- Scrap is the audit part. This is the material which is of no use at present and was of

use earlier. We send this material to the registered vendor of scrap and vendor in return pay

us by demand draft and we post this draft to head office.


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Reverse logistics ware house- The concept of reverse logistics ware house is implemented

for damage stock. Four reverse logistics ware house are there in India for four different

zones. If damage is done at the store or in ware house then it is send to reverse logistics ware

house of that zone.

Cost monitoring or the expenditures of ware house-

1. Ware house rent2. Contract labour cost3. Future logistics manpower cost4. Security cost5. Utility cost6. Ware house packaging cost7. Others

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