group a1_supply chain decisions of big bazaar

7/29/2019 Group A1_Supply Chain Decisions of Big Bazaar

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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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group a1_supply chain decisions of big bazaar

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