SUMMER TRAINING PROJECT REPORT In BUYING PREFERENCE OF CUSTOMERS OF BIG BAZAAR AT PANTALOON RETAIL INDIA LTD. (BIG BAZAAR) In Partial Fulfillment of the Requirement of Bachelors of Business Administration (BBA) GURU NANAK DEV UNIVERSITY AMRITSAR Training Supervisor Submitted By: Ayush Jhawar Enrollment No. GURU NANAK DEV UNIVERSITY 1
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SUMMER TRAINING PROJECT REPORT
In
BUYING PREFERENCE OF CUSTOMERS OF BIG BAZAAR AT PANTALOON RETAIL INDIA LTD.
(BIG BAZAAR)
In Partial Fulfillment of the Requirement of
Bachelors of Business Administration (BBA)
GURU NANAK DEV UNIVERSITY AMRITSAR
Training Supervisor Submitted By: Ayush Jhawar
Enrollment No.
GURU NANAK DEV UNIVERSITY
AMRITSAR
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ACKNOWLEDGMENT
I hereby take the opportunity to express my profound sense of gratitude and reverence to
all those who have helped and encouraged me towards the successful completion of the
project.
I would like to thank my Project Guide anoop bopara who provided me the opportunity
to complete the project under his guidance.
I would like to thank all the Faculty Members of JIMS for guiding me and supporting me
in the completion of this project from time to time.
Last but not the least my greatest gratitude to the Almighty and my parents without
their support this dream would have remained a dream.
AYUSH JHAWAR
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Executive summary
I have undertaken my summer internship with supply chain department of
Pantaloon Retail India Ltd. (Big Bazaar) delhi a unit of future group.
As supply chain is a very big area to cover in just sixty days, so I formulate a
complete supply chain of Big Bazaar and divide my work in store ware house, floor, and
central ware house. Firstly I spend some time on floor and see the customer buying
behaviour, customer preference, customer need etc.,the visualisation part done by the
V.M. and floor team arrangement of the material on the floor to attract the customers.
In current business scenario S.C.M. is very big and major problem for retail
industry. Second part of my job was to work in store ware house where I have seen the
complete receiving of the material and documentation process by following all the rules
of S.O.P. In the store ware house I have seen the in warding of the material on SAP with
different commands, how to make G.R.N. of the material and post all the documents to
the commercial office. Here I have seen how to make S.T.O.
Third part of my job was to work with Central Ware House team. In ware house I
try to understand whole process of supply chain and logistics, their way of working. Here
I have seen in warding, racking, out warding, segregation and maintenance of the stock
physically as well as in SAP.
Then finally I have done market research on buying behaviour of customers
towards three main players of the retail industry.Questionaire is customer oriented in
spite of vendor oriented because according to me customer is the king of supply chain.
Supply chain circulates with the flow of information in terms of need of the customers. I
made questionnaire and did a survey by filling the questionnaires and get findings from
the result of these questionnaires. By the help of these findings I came to know that
before entering in to a retail outlet customer weighs that retail outlet on some parameters.
By the help of findings from questionnaires I came to know the sequence and weighing
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of these parameters preferred by the customers. Big Bazaar is on the right track by using
these parameters for being customer oriented.
After the above studies and insight of the workings a few hindrances where
spotted but on an overall we can say that the store is quite well maintained.
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CHAPTER 1
INTRODUCTION
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INTRODUCTION
1.1 OVERVIEW OF THE RETAIL INDUSTRY
Retailing is the distribution channel function where on organisation buys products from
supplying firms and manufacture the product themselves and then sell these directly to
consumers. Retailer is also reseller-obtain the product from one party in order to sell to
other. The term "Retailing" refers to any activity that involves a sale to an individual
customer. In India, the unorganized retailing sector comprises of 96.5% while that of
organized sector just 3.5% that is mainly in major metropolitan and urban areas. Indian
retailing traditionally dominated by a small family run "Kirana" store. Retailing in India
is the second largest untapped market after China. Professional management and strong
customer focus characterize organized retailing.
Concept- To woo the customer to the store retailers are providing a wide range of
product, Quality, and value for money, apart from creating a memorable shopping
experience. Organized retailing has made a considerable headway in product like food &
groceries, clothing books, and music.
Five things for the retailer-
1. Customer satisfaction
2. Ability to acquire right product
3. Product presentation
4. Traffic building
5. Keeping pace with technology
The leading Indian retail player are-
1. Westside (Tata)
2. Pantaloon
3. Big Bazaar
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4. food bazaar(PRIL)
5. Food world(RPG)
6. Shopper's stop(Raheja Group)
7. Reliance fresh
8. Vishal mega mart
9. Life style
10. Ebony
11. Hyper city
12. Honey well
13. Subhiksha
Different format of retail-
1. Mom-and-pop stores: These are generally family-owned businesses catering to
small sections of society. They are small, individually run and handled retail
outlets.
2. Category killers: Small specialty stores have expanded to offer a range of
categories. They have widened their vision in terms of the number of categories.
They are called category killers as they specialize in their fields, such as
electronics (Best Buy) and sporting goods (Sport Authority).
3. Department stores: These are the general merchandise retailers offering various
kinds of quality products and services. These do not offer full service category
products and some carry a selective product line. K Raheja's Shoppers Stop is a
good example of department stores. Other examples are Lifestyle and Westside.
These stores have further categories, such as home and décor, clothing, groceries,
toys, etc.
4. Malls: These are the largest form of retail formats. They provide an ideal
shopping experience by providing a mix of all kinds of products and services,
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food and entertainment under one roof. Examples are Sahara Mall, TDI Mall in
Delhi.
5. Specialty Stores: The retail chains, which deal in specific categories and provide
deep assortment in them are specialty stores. Examples are RPG's Music World,
Mumbai's bookstore Crossword, etc.
6. Discount stores: These are the stores or factory outlets that provide discount on
the MRP items. They focus on mass selling and reaching economies of scale or
selling the stock left after the season is over.
7. Hypermarkets/ Supermarkets: These are generally large self-service outlets,
offering a variety of categories with deep assortments. These stores contribute
30% of all food and grocery organized retail sales. Example: Big Bazaar.
8. Convenience stores: They are comparatively smaller stores located near
residential areas. They are open for an extended period of the day and have a
limited variety of stock and convenience products. Prices are slightly higher due
to the convenience given to the customers.
9. E-tailers: These are retailers that provide online facility of buying and selling
products and services via Internet. They provide a picture and description of the
product. A lot of such retailers are booming in the industry, as this method
provides convenience and a wide variety for customer. But it does not provide a
feel of the product and is sometimes not authentic. Examples are Amazon.com,
eBay.com, etc.
10. Vending: Smaller products such as beverages, snacks are some the items that can
be bought through vending machines. At present, it is not very common in India.
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View of a retail store-
To have a clear picture and understanding of any matter it is very important to approach it
from the grass root level therefore to understand retail in depth it becomes important to
deal first hand with the customers to whom you shall be catering to. Moreover the retail
store is the final destination of all retail operations, so it again becomes important to
know the handling, operations and various dealings at the basic store level. The
employees, from the sales staff to the store manager, need to be highly customer driven
and have the efficiency to meet the ever rising customer expectations. How can
employees meet these rising customer expectations and alongside maintain efficiency of
resources. The employees need to be well informed about stock availability, reorder
points, latest trends, customer expectations, competitor strategies etc.
To meet such stiff competition retailers need to follow a hybrid approach which involves
both standardization and customization of processes and services respectively as and
when the need arises.
The retail staff needs to be highly customer driven and their efforts should not be aimed
at making a sale but at earning a loyal customer for it is rightly said that 80% of the sale
comes from 20% of the customers.
Retail is all about size. If you look at retail companies, margins are thin. So it is important
to grow to such a size that even if margins improve by ten basis points, the impact on the
bottom-line is large.
Therefore the processes need to be consumer friendly and apt according to the cost
reduction and revenue generation policies of the company. Though the consumer
behaviour is something that is highly unpredictable it needs to be motivated continuously
for the benefit of the organization and definitely the customer too.
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Why retail is booming in India-
1. Cultural habits changing –people are acquiring Western look
2. New retail format development to incorporate, Changing attitudes like
“Having a good time” attitude driving growth of pubs, clubs, coffee bars, fast
food joints etc.
3. Increasing awareness and spending on grooming and lifestyle.
4. High disposable incomes
5. Reduction in import tariffs, excise duty
6. More competition leading to fall in prices
7. Before liberalization many consumer durables were not available – Government
disallowed imports of most products – Luxury items banned/had high import
tariffs
8. Post liberalization Enhanced availability of superior quality goods at affordable
prices
9. Two incidental factors Spread of cable and satellite television influencing
consumer behavior.
Changing retail scenario-
Demand = Ability + willingness to spend;
Market = Demand + supply
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COMPANY PROFILE
Pantaloon Retail India Ltd.
Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai (Bombay), the company operates over 10 million square feet
of retail space, has over 1,000 stores across 61 cities in India and employs over 30,000
people.
The company’s leading formats include Pantaloons, a chain of fashion outlets,
Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain,
blends the look, touch and feel of Indian bazaars with aspects of modern retail like
choice, convenience and quality and Central, a chain of seamless destination malls. Some
of its other formats include Depot, Shoe Factory, Brand Factory, Blue Sky, and Star and
Sitara. The company also operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a
large-format home solutions store, Collection i, selling home furniture products and E-
Zone focused on catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the
US-based National Retail Federation (NRF) and the Emerging Market Retailer of the
Year 2007 at the World Retail Congress held in Barcelona.
Pantaloon Retail is the flagship company of Future Group, a business group catering to
the entire Indian consumption space.
Future group-
Future Group is one of the country’s leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The
group’s flagship company, Pantaloon Retail (India) Limited operates over 10 million
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square feet of retail space, has over 1,000 stores and employs over 30,000 people. Future
Group is present in 61 cities and 65 rural locations in India
Some of the awards given to Pantaloon Retail (India) Limited:
Images Retail Awards 2005
PRIL - Most admired retailer of the year
Central - Retail launch of the year
Mr. Kishore Biyani - Retail Face of the year
Big Bazaar - Best Value Retail Store
Readers Digest and Awaaz Consumer Award
Big Bazaar - Best Retail Destination
Readers Digest Platinum Trusted Brand Award
Big Bazaar - Earning a trusted Place in the everyday lives of consumers
Food Bazaar - Retailer of the year (food and grocery
Big Bazaar - Most preferred, large, Food and Grocery store
Partner companies
Pantaloon Industries Ltd.
Home Solutions Retail (India) Ltd.
Future Capital Holdings
Converge M Retail (India) Ltd.
Indus League Clothing Ltd.
Galaxy Entertainment Corporate Ltd.
Joint Ventures Companies
Planet Retail Holdings Ltd.
Foot mart Retail
GJ Future Fashions
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CapitaLand Retail India
ETAM Future Fashions India Pvt. Ltd.
Lines of Business
The company is present across several lines of business which have various formats
(stores) operational under it. These include:
Food – Food Bazaar, Chamosa, Spoon
Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10
General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar,
Furniture Bazaar
Home & Electronics - Home Town, eZone, Collection 1
Our commitment is to deliver sustained growth, through empowered people, acting with
responsibility and building trust with customers. Here’s I am explaining what this means:
Sustained Growth is fundamental to motivating and measuring our success. Big
Bazaar’s quest for sustained growth stimulates innovation, places a value on results, and
helps us understand whether today’s 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 company’s needs.
Responsibility and Trust form the foundation for healthy growth. It’s 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.
PROBLEMS OF THE ORGANIZATION
2. Service delivery / Logistics perception is weak
3. Negative Environment
4. High interest rate as compared to others housing finance institution.
5. Top management takes large amount of time to approve high value loan
borrowers.
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1.4 COMPETITION INFORMATION
Westside (Tata)
Pantaloon
Big Bazaar
food bazaar(PRIL)
Food world(RPG)
Shopper's stop(Raheja Group)
Reliance fresh
Visual mega mart
Life style
Ebony
Hyper city
Honey well
Subhiksha
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CHAPTER 2
OBJECTIVE AND
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
2.1 Significance
The main significance of the study is to analyze the buying preference of
customers towards retail stores in India
2.2 Managerial usefulness of the study
The managerial usefulness of the study is to analyze/compare the buying
preference of customers towards three main players in retail i.e. Big Bazaar,
Reliance fresh and vishal mega mart’.
2.3 Objective
‘To analyze/compare the buying preference of customers towards three
main players in retail i.e. Big Bazaar, Reliance fresh and vishal mega
mart’.
2.4 Scope of the study
I have done survey by questionnaires on consumers/customers in spite of the
vendor simply because of the reason that more or less a supply chain
depends on the customer need. Category should be aware with the need and
preference of the customers. This survey helps me a lot to know about the
different parameters proffered by the customers before entering a retail
outlet. So flow of the supply chain is depends upon the customer purchase
that in terms depends upon the parameters fulfilled by the retail outlet.
Because as we know customer is the king of any retail outlet.
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2.5 Methodology
Research Design
A research design is a frame work or blue print for conducting the business research
project. It details the procedures necessary for obtaining the information needed to
structure and solve business research problem. In this project we have conducted
exploratory and descriptive research to ‘To analyze/compare the buying preference of
customers towards three main players in retail i.e. Big Bazaar, Reliance fresh and vishal
mega mart’.
Exploratory Research:
It is a type of research which has its primary objective the provision of insight into and
comprehension of the problem situation confronting the researcher. We have done
secondary research as the part of Exploratory Research.
Descriptive research
A type of conclusive research that has its major objective to describe something, usually
business characteristics or functions. Major methods employed in descriptive research are
survey and observation of that we have used survey using questionnaires.
Sample
A sub group of the elements of the population selected for participation in the study.
Sample characteristics called statistics are then used to make inferences about the
population parameters. We have chosen sample of people out side the retail outlets in
three different locations of the Indore.
Sampling design process-
Define the target population- The collection of elements or objects that possesses the
information sought by the research and about which inferences are to be made. So our
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target population are people ready to buy monthly needed items from the retail outlet
according to there preference of parameters.
Sampling technique- Convenient sampling
Convenient Sampling: A type of non-probability sampling technique that attempts to
obtain a sample of convenient elements. The selection of sampling unit is left primarily
to the interviewer.
Sample size
We have taken sample of 100 Respondents out side the retail outlets ready to buy form
there.
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CHAPTER 3
CONCEPTUAL
DISCUSSION
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Supply chain process -
As we know supply chain is the back bone of any industry. A supply chain consists of all
parties involved directly or indirectly in fulfilling a customer request. The supply chain
includes not only the manufacturer or supplier part but also transporter, ware house and
customer part. In retail especially supply chain begins with the customer and his or her
need for the product. In retail supply chain involved in receiving and filling a customer
request. As we know customer is an integral part of the supply chain.In fact the primary
part of any supply chain is to satisfy customer needs and in precess generate profit for
itselfThe term supply chain conjures u[ images of product or supply moving from to
manufacturer to distributer to retailer to customer along a chain.This is certainly part of
supply chain,but it is also important to visualize information,funds and products flows
along both directions of this chain.
In reality a manufacturer may receive material from several supplier and then supply
several distributers.A supply chain ,may includes a variety of stages;
1. Customer
2. Retailer
3. Wholesaler/distributer
4. Manufacturer
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SUPPLIER
MANUFACTURERTRANSPORTER
RETAILERRETAILER
CUSTOMER
CUSTOMER
Supply chain process- Supplier
Manufacturer
Distributor
Retailer
Customer
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Customer order cycle
Procurement cycle
Manufacturing cycle
Replenishment cycle
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.
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 customer’s 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 customers
a. Market
b. Price
c. sell
2. I.S.C.M.-All processes those are internal to the firm.
a. Strategic planning
b. Demand planning
c. Supply planning
d. Fulfilment
e. Field service
3. S.R.M.-All processes that focus on the interface between the firm and its
suppliers.
a. Source
b. Negotiate
c. Buy
d. Design collaboration
e. Supply collaboration
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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.
Supply chain of Big Bazaar
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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 company’s expense)
Receiving of the material at the store with all the required documents
Receiving of the material at the central ware house (C.D.C.)
Weighing, counting of cartoons, generation of I.R. no. by putting information on SAP
Document check by the security at the gate and in ward register is maintained by following all the rules of S.O.P.
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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.
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)
Compare the material with the documents, stamp the documents, write information with signature of the security and then unload the truck
Transfer of the material to the store ware house
Generation of the G.R.N.( Goods Received
Note) 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
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.
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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.
Send all the documents to the commercial office for the preparation of MIRO sheet (send to head office for payment purpose) and for the records
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 vendor’s expense) with the invoice copy and purchase order copy.
Document bring by the transporter with the stock are-
1. Consignee copy
2. P.O.D. copy
3. Purchase order
4. Invoice copy
5. A.S.N. copy
6. Quality check
7. Way bill (Out of state)
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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-
1. Net weight of the packet should not be more than 25 kg.
2. BOPP tapes should be printed
3. Packaging with stretched wrapping
4. Packaging should be dry
5. Label pasted on the packages should be clearly visible
3. Receiving of the material at the Big Bazaar (Indore) 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 site
2. Supplying site
3. Invoice no.
4. H.U. no.
5. Material on paper
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6. Gate pass
7. Cartoon 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. 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 cloths
3. Soft tags-especially on plastic, crockery, electronics etc.
All the material is designed on the Racks and
1. Gandola
2. Gap table
3. D- unit
4. Four arms unit
5. Eight arms unit
6. Step table
7. Bins
8. Hyper bins
9. Wall hanging
V.M. plays an important role in designing and visualization of the material on floor.
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What is visual merchandisation?
Visual merchandisation is briefly defined as presentation of a store and its merchandise in
ways that will attract the attention of potential customers and motivates them to make
purchase.
Purpose of visual merchandising-
1. Increase turnover
2. Image building
3. Influence buying behavior
4. Satisfy customers
Role of visual merchandising-
To put forward the best of merchandise highlight in terms of colour, quality, and price in
the most aesthetically appealing way with 100% clarity.
To ensure that all the information is communicated in an informed, friendly and helpful
and selling mode.
Arranged merchandise Easy to find Easy to pick
Aesthetically pleasing
Easy to buy
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4. Documents to commercial-
After the whole process in Big Bazaar (Indore) 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.
5. Receiving of the material at the central ware house (C.D.C.) Indore –
Material is delivered (out ward) by vendor to the CDC Indore (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. Indore 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 Indore
in this case) against S.T.O. In case of Big Bazaar (Indore) the stock comes from central
ware house C.D.C. Indore (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 and actual 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.
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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.
No. of registers maintained in store ware house-Check list for Big
Bazaar Indore-
1. Salable items-
Inward
Outward
Return to ware house
Return to vendor
Security inward
Security outward
Discrepancy register
Stock handover register
2. Non salable register-
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Inward
Outward
Damage tags register
Tags flow maintenance
Tags requisition format
Inward
3. SIS-
Inward
Outward
4. Damage-
Ware house damage
Return to ware house
5. Others-
Returnable goods
NSM requisition
Free gift
Documents -
Invoice (bill)-
Invoice is the document send by the vendor with purchase order. Invoice consists
of the details of the product and gives us the information about the material sended by the
vendor and its rate and amount.
Invoice document consist of –
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Site address
Consignee
Buyer
Invoice no.
delivery note
Supplier reference
Buyers order no.
Destination
Term of delivery mode/term of payment/date
Description of goods
Quantity
Rate
Discount%
Amount
total
Gate pass-
Gate pass is the document for the entry to the store. It consists of following
things.
Gate pass no.
Date
Site name
Delivery no.
Quantity
Packages
Total
Vehicle no.
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Gate pass consist of a stamp of Big Bazaar contains following
Security inward no. date
No. of cartoons
Time
Signature of security
S.T.N.-
S.T.N. is the document generate by the central ware house people when they outward the
material to the store. They send this document with the material. It consists of the
following things-
Delivery no.
Delivery date
Delivery note
L.R. name
L.R. date
Party address
Article description
Article no.
M.R.P.
Cost
Quantity
Amount
Total
LST/VAT Tin no.
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S.T.N. consists of two stamps; one of in warding and second of out warding. And stamp
consists of
Security inward no./outward no.
Date
Quantity
No. of cartoons
P.O. no.
G.R.N. date
Vehicle no.
Security name and signature
L.R. copy (consignee copy)-
This copy mainly consists of consignee no. and the instruction given on the back side of
the document, other things mentioned over this document are
Delivery instructions
S.T.(TIN NO.)
Invoice no.
Date
Invoice value
Delivery site
Booking office address
Weight 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. Indore, supplying stock to Big Bazaar Indore,
Suppose category has purchase 1000 pre pack of the formal shirts for the Big Bazaar
Indore. Then in this case category will make purchase order directly for the central ware
house Indore. Transportation of the material is done at the company’s expense. Central
ware house Indore 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 these registered 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
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expenditure of transportation. Concept of ware housing is to fulfil immediate requirement
and storage of the material.
Three flows in Supply chain
A supply chain is dynamic and involved the constant flow of information, products and
funds between different stages.
If we see in case of big bazaar provides the products as well as pricing and availability of
information to the customer. The customer transfer funds to the big bazaar by purchasing the
product present at the store.
Big bazaar conveys point of sales data as well as replenishment order to the ware house
or category that make purchase order to the vendor who transfer the replenishment order via truck
(transporter) to the store. Big bazaar transfer funds to vender after the replenishment.Information
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is the driver that serves as nervous system to create a coordinated supply chain. It is life-
line of SCM.Information must have the following characteristics to be useful:
Information should be accurate.
Information should be accessible in a timely manner.
Information must be of the right kind.
Information provides the basis for supply chain management decision like
o Inventory Transportation
o Facility
Transportation of material in Big bazaar-
Transportation-
Transportation is movement of goods from one location to another.
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 1500 kilo meter. If the distance is more than this then 4.50Rs per kilo meter.
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Concept of ware housing in Big Bazaar-
Ware house is nothing but Company’s 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
To store products: finished products raw material.
To maintain original quality of store material
A static Unit to hold products till sold (Cost Centre)
New concept of ware house invented by Big Bazaar-
Providing Logistic service in a cost effective manner
Making product available at right time, at right place, in right quantity
and quality at right cost
Functions of Warehousing in Big Bazaar-
Economic Functions
Consolidation
Break-Bulk
Stockpiling
Value-Added Services
Functions of Warehousing- stockpiling
• Seasonal Storage of Products
• Woolen Garments
• Helps in smooth availability of products
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Value added services means add different values to a single service to maximize the
profit and reduce the transportation cost to minimum. In this type of ware housing we
receive stock from a vendor and transport it to different nearest stores.
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In this type of ware housing required ware house consolidate the material from different
vendors and then transfer it to different stores. This format of ware housing is usually
followed in Big Bazaar.
In this type of ware housing ware house receive material from a vendor but in bulk and
then transfer it to different stores.
Operational Functions:
1. Receiving goods
2. Keeping records of Inventory
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3. Store goods- appropriate place & min. area
4. Preserve quality- physical attributes
5. Proper handling- loading, Unloading, stacking
6. Order receiving- processing & filing
7. Dispatching goods
8. Preparing and releasing documents of transactions; keep records
9. Marketing intelligence- between co & Customers
10. Other legal functions related to trade
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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.
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Three type of distribution centre in Big Bazaar supply
chain-
M.D.C. (mother distribution centre) e.g.Tarapure ware house
R.D.C. (regional distribution centre) e.g.Hassan garh ware house
C.D.C. (centre distribution centre) e.g. Central ware house (Indore)
Central ware house (C.D.C. Indore)-
There are ten to twenty central ware house of Big Bazaar in India. C.D.C Indore 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. Indore 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 Indore 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