about big bazaar, the logistics, supply chain, warehousing and pricing aspects

1. LOGISTICS , SUPPLY CHAIN AND WAREHOUSING

2. PRESENTERS
• DON PAUL 1603305018
• AKHILA BABU 1603305005
• RAHUL SURESH 1603305030
• VISHNU RL 1603305042
• ASHWIN KUMAR 1603305012
• JUSTIN JOY 1603305024
• SELLAPRABHU 1603305036

3. What is Supply Chain Concept?
It is the strategic management of activities
involved in the acquisition and conversion of
materials to finished products delivered to
customer.

6. Objective of the Study
• The objective of the study is to analyze how the stock move
from vendor to customer in a organized retail format.
• It also include understanding of the warehouse management of
Big Bazaar.

7. ABOUT BIG BAZAAR
Industry Retailing ( Hypermarket )
Founded 2001
Parent Company Future Group
Headquarters Mumbai
Products Department Store
Promoter Mr. Kishore Biyani
Revenue Rs 3500 crores (2016)
Employees 42000
Stores 250 (+) across 120 cities in India.
Parent Chain of Food Bazaar, Fashion at Big
Bazaar, eZone.
Sister Chain of Brand Factory, Home Town,
Central

8. • The inspiration to set up big bazaar came not from any
foreign super market, but from a relatively small family
run shop in Chennai, called “Saravana Stores”.
• The first big bazaar store was set up in Kolkata and second
and third were at Koramangala, Bangalore and Abids,
Hyderabad
• If you thought big bazaar outlets are crowded, they are
intentionally designed to look that way.

10. Logistics mechanism
• Modern day retail logistics mechanism is something more than
transportation and storage.
• An efficient retail logistics for retailers ensures competitive
advantage, and its scope now includes plans and processes that
allow the back end to effectively meet consumer demand.

11. Role of Logistics in Big Bazaar
• Inbound and outbound transportation: It means
transportation of goods from manufacturers to retailers with in
the country or outside the country.
• Warehousing: Logistics plays a very crucial role in the
storage of the goods and merchandise in a warehouse, as it is
the logistic company that has picked the goods from the
manufacturer to be delivered to the retailers.
• Packaging and labeling: The packaging and labeling of the
goods is also the responsibility of the logistic company.
• Shipment consolidation: In case the shipment mode of
transportation is used for the transfer of goods, then again it is
the responsibility of the logistic company to get it arranged.

12. Role of logistics (cntd)
• Tracking/Tracing the products: In case of any mishap or loss
of products then tracing and tracking the goods is again the
logistic company’s responsibility.
• Inventory management: The logistics also play a significant
role in managing the inventory.
• Distribution of merchandise: Once the logistic company has
picked up goods from the manufacturer, then again it is the
responsibility of the logistic company to get it delivered and
distributed to different retailers.

13. Product Mix

14. Product Mix (cntd…)

15. Stock Management
• Stock management is managing the stock with the
company or management in the procurement of the
stock.
• This stock management in retail industry involves in
procurement of goods after analyzing the various
factors that drives it and also the movement of the same
to the customer.
• It is indeed very important as inventory ties a large
amount of money of the company.

16. Stock Management (cntd…)
• Moreover the stock management is essential because
adequate amount of stock always helps in saving
company’s money and also efficiently utilize the pilling
space (ware house).
• Also improper stock management leads to shrinkage of
goods and hence shrinkage management is now a days
an important part of stock management.

17. Inventory Management
• Objective of the inventory management is to maintain an
optimum size of inventory for efficient and smooth production
and sales operations.
• Its objective depends on 5 R’s: Effort should be made to place
an order at the right time with right source to acquire the
right quantity at the right price and right quality.

18. Need of Inventory Management System
• SMOOTHENING DEMAND: This is one of the most
important purposes of inventory management system to
smooth the seasonal and cyclical demand.
• ACT AS PRICE CUSHION: Good inventory management
system also acts as cushion against the sudden rise or fall in
price. Also it enables the firm to gain the benefit of various
kinds of reductions in price.
• SAFETY PURPOSE:
1. In internal process of the organisation due to any breakdown
or shortage.
2. For acting as cushion for any kind of delay in receiving
goods in our supply chain.

19. Types of Inventories in Big Bazaar
• The inventory management for all the branches is that they adopt
different methodology for different categories of products.
1) Cycle inventory is carried for the FMCG product category and
Food Category as the turnover of these products is high and after a
period they get expired.
2) Safety level of inventory is adopted for Apparel as the cost of these
products is high and they can be retained for longer span.
3) Seasonal inventory is adopted for the products which are in demand
for only peak season.

20. Supply Chain Management
• Procurement in Big Bazaar happens from :
Central Distribution Center.
Local Vendors.
• The Stock in the store is managed by Automated Replenishment
System (ARS).
• The CDC are located in such a strategic position so that it can
easily cater to the nearby stores.

22. Central Distribution
Centre
CENTRAL
DISTRIBUTION
CENTRE
MANUFACTURER
MANUFACTURER
MANUFACTURER

23. The Big Bazaar distribution centres act as warehouses alone,
unlike Wal-Mart where these centres act as developers of
suppliers.
There is no pull mechanism in order-generation and it
depends largely on the decisions by individual category
managers on weekly whereas in Wal-mart, it is a daily pull
mechanism based on store consumption.

24. Local Procurement
LOCAL VENDORS
LOCAL VENDORS
LOCAL VENDORS

25. Management Information System
(MIS) in Big Bazaar
• Big Bazaar has strong MIS capability that helps them to
improve their operations, as well as enhancing their speed of
execution in response to what the customer want.
• Big Bazaar uses JDA ERP and SAP ERP software.
• JDA ERP is an enterprise resource planning software
developed by an American software and consultancy company
while SAP ERP is an enterprise resource planning software
developed by a German company SAP (System, Application
and products) SE to manage the inventory system of different
business and improve customer relationship management.

26. • Function of Enterprise Resource Planning in Big Bazaar
– Product ordering
– Merchandising buying
– Inventory Management
– Stock Transfer

27. Warehouse Management
(Inwarding Process)
PO generated by the ARS
Received by the Vendor
Vendor delivers the goods
IRN is issued by the warehouse management team
Stock Tally. If stock tally fails than discrepancy note is
generated
GRN is issued
Stock is either pilled in the ware house or sent to the floor
for sale

28. Warehouse Management
(Outwarding Process)
Raising of PO to the vendor by the CDC
Delivery of Stock to the CDC
Receiving of the stocks after weighing, counting and
generation of IRN
Information is transferred to SAP
Generation of GRN
Stocks pilled stored in the warehouse of CDC
PO generated from stores to CDC

29. Warehouse Management
(Outwarding Process) cntd…
Outwarding of material from CDC
Receiving of goods at the Big Bazaar store.

30. STORE LAYOUT AND DESIGN
• The store layout and design is perfect in creating image in the
minds of the customers.
– Plano grams store design-providing lots of space for
customers to walk and see varieties of products without any
difficulty.
– It is designed just like convenience stores to make people
feel that they are shopping in their local streets.

32. Horizontal racks
4 Way Fixtures

33. Gondolas

34. VISUAL MERCHENDISING
• Different section of apparels having all types of apparels for
men, women, kids etc.
• Different section for electronic goods, toiletries products, etc.
• Decorative colour during festivals
• Straight rack to hold lots of apparels
• Gondolas are good for food and grocery.

37. PRICING
• The tagline is
‘ Is Se Sastha Aur Achaa Aur Kahin Nahi ’
• They work on the model of Economies of Scale.
• The pricing objective is to get – Maximum market share.
• The various techniques used at Big Bazaar are :-

38. • Value Pricing (EDLP – every day low pricing)
– Big Bazaar promises consumers the lowest available
price without coupon clipping, waiting for discount
promotions or comparison shopping.

39. • Promotional Pricing
– Big Bazaar offers financing at the low interest rates.
– The concept of psychological discounting ( Rs 99 , Rs 49 etc ) is
used as a promotional tool.
– Big Bazaar caters to Special Event Pricing.

40. • Differentiated Pricing
– Time Pricing i.e difference in rate based on peak and non-peak
hours or days of shopping is also a pricing technique used in Indian
retail, which is aggressively used by Big Bazaar.

41. • Bundling
– Selling combo packs and offering discounts to customers.
– The combo packs add value to customer.

42. • Other pricing strategies:
– Buy more, save more
– Prices reduced on a combination
– Holding special discounts
– Highlighting the savings possible
– The Price Challenge Offer

43. SWOT Analysis
• Strengths
– Big Bazaar is one of the largest retail hypermarket in India
with 250 + stores.
– It is owned by Future group, which owns other retail brands
like Central Hypermarket, Brand Factory, Pantaloons,
eZONE, HomeTown.
– It offers a wide range of product category.
– The customers enjoy better shopping experience and
discount offers.

44. • Weakness
– Customers face delays in billing services during offer
seasons
– Big bazaar doesn’t have wide range of branded
products
– There were recent controversies with Big Bazaar for
holding expired and adulterated stocks
– Offers are given only for selected brands

45. • Opportunity
– There are lot of opportunities available for expansion.
– The volume of organized retailing in India is only 5-7%
and players like Big Bazaar have lot of scope to fill the
gaps.
– The increase in disposable income of Indian middle class
families and the increase in earning youth population
have increased the buying potential.
– The consumers are looking for purchasing products in
malls and supermarkets.

46. • Threats
– Availability of space to set up large infrastructure is
difficult.
– Competition because of entry of Wal-mart, Reliance
Marts etc.
– The government policies keep changing and the foreign
players entering into retail segment may cause threats.
– Training staff members and retailing is big challenge for
human resources department.