78383876 Final Scm Ppt Big Bazaar

Introduction A chain of hypermarket with 210 stores across 80

cities and towns in India Big bazaar is not just another hypermarket but it

provides the best products at the best price Reflects the look and feel of Indian bazaars at their

modern outlets All over India, Big Bazaar attracts thousands of

customers on any regular day 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

SCM Of Retail Industry

SCM @Big Bazaar

• 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

• In the Big Bazaar supply chain activities belong to three macro processes: CRM, ISCM & SRM

• C.R.M.-All processes that focus on interface between the firm and its customers

• Market• Price• sell

SCM @Big Bazaar cont..• I.S.C.M.-All processes those are internal to the firm.• Strategic planning• Demand planning• Supply planning• Fulfilment• S.R.M.-All processes that focus on the interface

between the firm and its suppliers.• Source• Negotiate & Buy• Design collaboration• Supply collaboration

Supply Chain Process at Big Bazaar1. Raising a purchase order to vendor-

• At Big Bazaar category maintains the flow of material from vendor to store or from vendor to ware house to store

• 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

• Purchase order is made against this vendor no.& then vendor gives information about no. of items presents in their manufacturing ware house for supply and registration of those items by vender code is done

Supply Chain Process at Big Bazaar cont.. 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 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)

Supply Chain Process at Big Bazaar cont..

• Conditions- 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-• Net weight of the packet should not be more than 25

kg.• Packaging with stretched wrapping• Packaging should be dry• Label pasted on the packages should be clearly

visible

Supply Chain Process at Big Bazaar cont..

3. Receiving of the material at the Big Bazaar 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 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

Supply Chain Process at Big Bazaar cont..

• Paper check-• Receiving site• Supplying site• Invoice no.• Material on paper• Gate pass • Carton counting• 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.

Supply Chain Process at Big Bazaar cont..

• An indent will be kept by the front end team of the particular department to category team in central office

• The category team will raise a Stock transfer order (STO) and will send it to the DC or warehouse

• The DC will generate stock picks and will start picking

• DC will generate Stock Transfer Notes(STN) and gate pas

• DC will transfer stock to stores• Then the function of logistics will start

Logistics• Logistics is a part of supply chain management

which deals with the inwarding and outwarding of goods and non saleable item as well

RECEPTION OF GOODS FROM DC• As soon as the goods are received they are checked

by the seal condition and number as mentioned in the gate pass or delivery note

• Then the security in the logistics room will check for the no. of cartons

• Then the particular department is informed regarding the reception of goods

Logistics Cont..• The no of items are checked in front of the

department member in stock transfer no wise• With the help of the department member any

discrepancy/shrinkage is found and informed to the supply site

• Then the in warding will be done in register also will be updated in the system

• Then the department manager moves the items to the floor.

Reception of goods from the vendor

• If the goods are from vendors then Tax, Purchase order and invoice are checked

• Here the vendor himself has to go and take permission for the submission of goods in logistics

• Further of GRN ( Goods Received Note) of 3 copies are prepared for Logistics,for respective department and for DC / vendor

• All the above process mentioned are for inwarding

Few cases in which out warding is done

• Home Delivery

• Store to Store transfer

• Damage or expiry stock sent to warehouse or vendor

• Return of non saleable items

Warehousing• In terms of internal communication, the warehouses of

different Big Bazaars (different locations around India) are connected with each other

• Whereas the individual Big Bazaar outlets coordinate with their warehouses for daily stock requirements

• In situations where a Big Bazaar finds shortage in any of the stocks, it uses the internal IS connected through LAN to intimate its warehouse

• The warehouse supplies the required stock and keeps its own stock also in check. Warehouses utilize a REM (retail enterprise management) system to facilitate this process

Warehousing Cont..• The stocks are coded for simplicity and the garments

are coded using a 14 digit number.• while the stocks purchased from vendors use an alpha

numeric system beginning with two alphabets (namely LP – Local Purchase, OA for on approval and VC for vendor consignment) followed BY 10 digits.

• Each of the warehouses can order their stock in three ways .

(i) Through the headquarters. (ii) Through another Big Bazaar warehouse (iii)Directly from their supplier.• However, the delivery challans will be stacked and

sent to the HQ every month thus keeping the purchases in check.

• The warehouses communicate to each other on a weekly basis to exchange their stock related information.

Functions of Warehousing- Stockpiling

Reverse Logistics

• Big Bazaar has Central Return Center (CRC) which is a dedicated specialized building/area within Central warehouse

• Zonal Return Center (ZRC) which handles returns of each zone at these warehouses recycling, reconditioning, remanufacturing and refurbishing of products are done which are-

Customer return items Defective items and Unsold goods/excess stocks

Reverse Logistics cont..• Warehouse returns defective items and unsold/excess stock to

CRC/ZRC, accompanied by Goods return forms • Customer Returns: reverse logistics warehouses receives the

returned item with the Customer return note and decides whether these products to be sold as scrap locally at stores/ dispatched to vendor or dispatched to CRC(non apparel items)/ZRC(Apparel items)

•  Defective items: after quality inspection, CRC/ZRC takes decision about disposition of these items by

Scrap sale Auction sale Return to vendors Refurbish/ rework and sale in factory outlets Refurbish/rework and sale as fresh stock

Transportation @ Big Bazaar• Transportation is movement of goods from one

location to another.

• Transportation is the main artery of logistics and supply chain management

• Though transportation is at vendors expenses Big Bazaar has heavily invested into transportation for the effective flow of goods

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

SCM -Technology • IT helps to maintain manufacturing and

distribution activities• EIS and MIS reports generated for analysis and

decision making •  Future Supply Chain Solutions (FSCS) is one of

the seven verticals of Future Group which provides all the SCM related latest technology to the business

• FSCS has implemented a best-in-class WMS (Warehouse Management System), integrated with ARS (Automatic Replenishment System)

• FSCS has used advanced network planning and analysis tool to model optimised supply chain network for Big Bazaar retail operations

• The FSCS distribution centres are equipped with Imported Material Handling Equipments such as Reach Trucks, Stackers, Fork Lifts, Pallet Trucks, Roll Cages, RF Guns, Conveyors etc

Limitations

• Significant losses/damages during shipping

• Inadequate infrastructure

• Warehouses located far from city

Recommendations

• Warehouse location

• Improvement in packaging

• Stock Control and minimization of excess stock

• Infrastructure

• Cross docking of finished goods should be done

THANK YOU..