Post on 03-Apr-2018
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Supply Chain Decisions
Group 1PRN 01,02,56,57,61
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Introduction
About Big Bazaar Hyper mart
Chain of development store in India
Outlets More than 133 outlets
Located in India
Parent group Future group
Owner Kishore Biyani (CEO)
Founded 2001
Head quarter Jogeswari , Mumbai
Industry Retail
website www.bigbazar.com
Tag line Is se sasta aur achha kahin nahi.
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VISION
Future Group shall deliver Everything, Everywhere, Every time forEvery Indian Consumer in the most profitable manner.
MISSION
We share the vision and belief that our customers and stakeholdersshall be served only by creating and executing future scenarios inthe consumption space leading to economic development.
Mission and Vision
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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 makerswho are the primary decision makers.
Positioning and Segmenting
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APPARELS
Denims & T-Shirts
Fabric & Cutpiece
Formal Wear
Casual Wear Party Wear
Ethnic Wear
Accessories
UnderGarments
Night Wear
Dress Materials
Sarees
FOOD
Staples
Ready to eat
Ready to cook
InternationalFood
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 Mix
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Living Room
Bed Room
Kitchen
Dinning Rooms
Kids Room
Been Bags
Paintings
Decorative Items
ELECTRONICSBAZAAR
Television sets
WashingMachines
Refrigerator
Personal Care mBazaar
Microwaves
Small Appliances
Laptops
ComputerAccessories
Kitchen
Appliances
FASHION &JEWELLERY
Footwear Bazaar
Beauty Care
Navara
Star Parivar
Meena Bindre
FURNITUREBAZAAR Child Care
Kids Wear
Toy Bazaar
Stationary
Child Care
OTHERSERVICES
Mr. right
Bakery
Loot Mart
Tulsi
Future Money
Future
Generally
Product MixContd
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Value pricing
Promotional pricing
Low interest financing
Psychological discounting
Special event pricing Differentiated Pricing
Time pricing
Bundling
Price Mix
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Supply chain Importance inretail The logistics management cost component in India is as high as
7% -10% against the global average of 4% - 5% of the totalretail 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 moreproductive 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
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Inventory
Different types of inventory levels for different products Based onFSN 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 canorder from the nearest warehouse
Central purchasing of certain items gives economies of scale andthus big bazaar is able to compete on the cost
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Transportation
Future Logistics handles the logistics function of Big Bazaaralong other future group businesses
Consolidation of logistics for all the future group businessallows to reduce the cost of transport per unit
Transportation decisions are linked to inventory decisions
Frequent replenishments leading to reduced inventory andhence inventory holding costs
Significant economies of scale
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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
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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.
InformationContd
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