Synopsis of Bb

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Synopsis

Of

Supply chain

management (Big Bazaar)

Guide person - Mr. Amit kumar jha

Mr. Rohtash Kumar

Subtitle of the synopsis -

Future group

Big bazaar

Supply chain in Big Bazaar

Inwarding and outwarding in supply

chain management

Sap system

Global school of business, New

Delhi

Submitted to Ms. Shweta (HR)



Submitted by Vikas Sharma

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of

India¶s leading business houses with multiple businesses spanning across the

consumption space. While retail forms the core business activity of Future Group,

group subsidiaries are present in consumer finance, capital, insurance, leisure and

entertainment, brand development, retail real estate development, retail media and

logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million

square feet of retail space in 73 cities and towns and 65 rural locations across

India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around

30,000 people and is listed on the Indian stock exchanges. The company follows a

multi-format retail strategy that captures almost the entire consumption basket of

Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion

retail chain and Central, a chain of seamless malls. In the value segment, itsmarquee brand, Big Bazaar is a hypermarket format that combines the look, touch

and feel of Indian bazaars with the choice and convenience of modern retail.

In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic

expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in



Kolkata, Hyderabad and Bangalore.

The group¶s speciality retail formats include supermarket chain ± Food Bazaar,

sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement

chain - Home Town and rural retail chain, Aadhaar, among others.

Currently, Big Bazaar has 98 stores in the country, including the recently opened

store in Mysore on September 26th

2008. Further to this, Big Bazaar will be

opening three more stores in a single day ± i.e. 30th

September 2008, which will



take the eventual count to 101 stores in the country. These three stores opening

shortly in Pune (Kalyani Nagar), Cuttack (Darga Bazaar) and Delhi (Rajouri

Garden).

Big Bazaar ¶s journey began in October 2001, when the young, first generation

entrepreneur Kishore Biyani opened the country¶s first hypermarket retail outlet in

Kolkata (then Calcutta). In the same month, two more stores were added ± one

each in Hyderabad and Mumbai, thus starting on a successful sojourn which began

the chapter of organized retailing in India.

Speaking on this momentous occasion and remembering the days of

conceptualising the hypermarket idea Mr. Kishore Biyani said, ³We initially

decided to name the format as ³Bazaar´ because we had designed the store keeping

the Indian mandi style in mind. Since the size of the hypermarket was big than an

average mandis, the thought came to name it as ³Big Bazaar ́ . However, we hadfreezed on the punch line ³Isse Se Sasta Aur Achha Kahi Nahi´ much before we

met the creative agency to design the final logo of Big Bazaar .´

Though, Big Bazaar was started purely as a fashion format including apparel,

cosmetics, accessory and general merchandise, the first Food Bazaar format was

added as Shop-In-Shop within Big Bazaar in the year 2002. Today, Big Bazaar ,

with its wide range of products and service offering, reflects the aspirations of

millions of Indians.

The journey of Big Bazaar can be divided into two phases ± one pre and the other

post January 26th

, 2005, when the company rewrote the retail chapter in India, with

the introduction of a never-before sales campaign ³Sasbe Sasta Din´. In just one

day, almost the whole of India descended at various Big Bazaar stores in the

country to shop at their favourite shopping destination.

Further, what followed was the time and again rewriting of the Indian Retail

experience, wherein understanding of the Indian consumers reflected in the

products and services offered, creating innovative deals, expanding in the tier II

and tier III towns, tying up with branded merchandise to offer exclusive productsand services to its customers.

Big Bazaar is present today in 59 cities and occupying over 5 million sq.ft. Retail

space and driving over 110 million footfalls into its stores. The format is expecting

the number of footfall in the stores to increase by over 140 million by this financial

year. Over the years, Mr. Biyani for his vision and leadership, and Big Bazaar for



its unique proposition to its customers¶, have received every prestigious consumer

awards both nationally and internationally.

Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaar , ³What is

important in our journey is not the number of stores, but the customers¶ faith in us.

It¶s the India and the Indians, which have helped us, reach this feat in such a short

time span and today our country is creating a history in the World organized Retail.

Rajan Malhotra, who is also the first employee of Big Bazaar , joining the

organization in early 2001 adds, ³Since beginning, we have kept Big Bazaar as a

soft brand, which reflects the India and the Indians¶. We believed in growing with

the society, participating and celebrating all regional and local community

festivals, giving customers preferences above everything else.´

Every Big Bazaar is a small family by its own and the head of the family ± Karta ± is the store manager. Kishore Biyani, the CEO of the Future Group, has a vast

understanding of the consumer¶s insight, has inculcated the habit of µobserving,

understanding customers¶ behaviour¶, in every employee of the group.

Future Group is confident of the Indian Retail Story. The Group has not slowed

down its expansion plans despite the fiscal woes in the economy present today.

Future Group plans to have 300 stores and is expecting revenues of Rs 13,000

crore by year 2011.

Supply chain in big bazaar

Hierarchy of supply chain in big bazaar

INVENTORY

RECIVE AT THE STORE



BILLING

WAREHOUSE

DISPLAY

1 Inwarding of Merchandise

Process examines the methodology of Inwarding merchandise in Big bazaar &

Food Bazaar (refer Annexure 1

For Inwarding Process flow chart) for:



Transfer of merchandise undertaken by PRIL Warehouses to the store.

Merchandise delivered by vendors directly to stores.

Merchandise belonging to SIS for entering/exiting the store.

1.1 Receipt of Goods by the store warehouse for transfers

Affected by PRIL Warehouses

Basic Principle governing the process:

Goods are received according to the Stock Transfer Note (STN) issued by

The PRIL Warehouse

They are to be inwarded by invoking the handling unit number (H.U.No.) and

Undertaking a global count of items sent.

Receipt of Goods at the Store Warehouse and Security checking procedures

Delivery vehicle arrives at the store warehouse.

Security personnel to receive the supporting documents (like STN, gate

Pass) and hand over the same to the warehouse personnel undertaking the

Inwarding.

Document set is checked by warehouse personnel to ensure it contains a

Stock Transfer Note (STN) in duplicate and an outward gate pass issued byThe dispatching warehouse.

unloading of Merchandise and recording of the same in security register.

Re-selling the vehicle for its onward journey.

Inwarding of the consignment.



Sample erroneous consignment for testing the system.

Scanning of items in REM system.

1.2 Handling Shortages/Damages/Excess in shipments

During the Inwarding process following types of situations may occur:

Shortage/damage received during unloading of the merchandise

Shortage encountered within sealed boxes/ H.U.No.

Excess merchandise received

1.2.1 Shortage/damage received during unloading of the

merchandise

In case of in-transit shortage/damage, Store Warehouse Manager to identify the

same.

a. He must clearly mention the H.U No. & short/damaged qty. for theShort/damaged boxes on both the copies of delivery documents (i.e. STN /Tax

Invoice and gate pass).

b. Transporter¶s signature to be taken on both the copies of delivery documents

Mentioned above. Duplicate copy to be handed over to the transporter while

Original copy to be retained at store.

c. He must then do the GRN for actual quantity received.

d. Now value of short/damaged stock to be checked, if the value is greater

Than Rs 15,000:-

GRN for the short/damaged stocks to be done separately



1.2.2 Shortage encountered within sealed boxes/ H.U.No.

In case shortage is identified within the sealed boxes,

a. Store Warehouse Manager to do the GRN of the actual quantity received

b GRN for the short quantity to be made separately.

1.2.3 Excess Merchandise received

¢On receiving excess items, Store Warehouse Manager to keep these items

Aside. These items are not to be inwarded.

¢He must inform the dispatching site of excess delivery.

¢The excess items to be sent back to the dispatching warehouse separately bySealing the truck with returned goods.

1.3 Receipt of Goods by the Store warehouse for deliveries

Affected by vendors directly to the store


¢Goods are received strictly as per the P.O. issued.

For BB Merchandise, concerned category generates the P.O & hands it

Over to the vendor.

For FB merchandise P.O is generated at the store

.¢The consignment is inwarded by entering each SKU in the system

Examination of Supporting Documentation

¢For any consignment that arrives, Security personnel to check for the

Following documents:-



A signed P.O. which has not expired

Invoice of the supplier

1.3.1 Handling Shortages/Excess/Damages/Defective:-

¢In case of shortages/damages/defective received from vendor, GRN for theActual quantity received to be made.

1.4 Inwarding of SIS merchandise


SIS merchandise is the responsibility of SIS vendor & the stock is not part of

Our system hence this inventory is neither inwarded nor outwarded in the PRIL

SAP system.

However, a check and record must be maintained on the movement of goods by

The security personnel.

Inwarding of SIS merchandise and recording of the same

¢On arrival of SIS merchandise, the security personnel is notified of the same.

Security staffs to examine the merchandise to ensure the items pertain to

What the particular vendor is dealing in, take a count of the quantity being

Inwarded and allow it to enter the store after verification from the warehouseManager.

2 Outwarding of Merchandise

The need to outward merchandise

arises in case of excess, non-moving stocks, expiry of products, damages at

The store (especially in case of Food Bazaar) .These items can be outwarded either



To:-

¢PRIL Warehouse

¢Vendor


¢If items are to be outwarded to PRIL Warehouse, a forward STO must be

Created by the FEC (Front End Category) & sent to the store.

¢If items are to be outwarded to a vendor, an Outward Purchase Order (P.O)

Listing the items needs to be created:-

o at the store- for FB

o by the concerned category ± for BB

¢Each item is to be entered against this P.O./forward STO and outwarded

From the system

Approval of items to be outwarded

¢It is of utmost importance that, before outwarding, permission is to be

Sought from the store manager, zonal supply chain team and the respective

Category team whichever applicable.

Preparation of the forward STO

¢After taking proper approval as mentioned above, Store Warehouse Manager

to ensure that all items to be outwarded are scanned and a list of all such

Items is made in an excel sheet.

¢The list is to be sent to the FEC team.

¢FEC team to create a forward STO for the same and send the STO details back to the store.

¢Store Warehouse Manager to invoke STO No. in the SAP

outwarding of items to PRIL Warehouse/ Vendor



the items to be outwarded are collected & checked against the underlying

P.O./ forward STO

¢The outwarded items are saved as

o Outward GRN if it is vendor outward, of which three copies are printed.

o STN if it is a PRIL Warehouse outward, of which three copies are

printed

¢For any stock outward , Items must be properly packed keeping the

following points in mind ±

o Merchandise to be outwarded must be packed sub class wise (e.g.

merchandise related to subclass µBF-Ladies Mix N Match¶ must be

packed in the same carton) in ploy bags.

o Proper size carton must be used for packaging.

o Merchandise must be kept in a proper manner inside the carton and

hence must not be dumped.

o An Outward Packing Slip (refer Annexure 10) with relevant details

mentioned on it must be pasted on every carton.

Warehouse personnel to record the GRN / STN details, merchandise details

and quantity in their Store Outward Register

Security personnel to record the outward in their Security Register ±

Inwarding & Outwarding and create a Gate Pass (refer to

for the consignment The GRN/STN and gate pass are

stamped with the Store Outward Stamp by the security. The outward number

according to the security register, number of cartons and date are to be recorded on the stamp.

Two copies of the GRN/STN and the gate pass are to be handed over to the

delivery vehicle staff.

The other copy of the GRN/STN and gate pass is retained by the warehouse

personnel for filing of the same.



¢Warehouse personnel to supervise loading onto the delivery vehicle

according to the GRN/STN. The security personnel to simultaneously

maintain a count of the cartons being loaded on the vehicle and tally the

same with the number of cartons as per the GRN/STN.

¢Security personnel to affix a seal containing store¶s stamp & security¶s

signature on the delivery vehicle.

¢When the consignment reaches the PRIL Warehouse, the respective

personnel to acknowledge the receipt of the goods on one copy of the STN,

which needs to be then sent back to the dispatching store for their records.

¢In case of returns to vendor, latest by his 3rd visit, vendor should take back

return of goods delivered in his 1st visit.

¢If the vendor doesn¶t take back the stocks even after his 3rd visit, Food

Bazaar category then comes into the picture. It is the category¶s

responsibility to ensure that the vendor takes back the merchandise

immediately or the same to be destroyed at the store/warehouse. Respective

DM to co-ordinate with zonal FEC for proper handling & approval of the

merchandise .

2.1 Outwarding of SIS merchandise

Merchandise to be outwarded is checked by the security personnel to ensure

items not belonging to the vendor are NOT taken out of the store. If all items are

in order security personnel to take a count of the items being outwarded and

allow it to exit the store after verification by the store manager.

A record is made in the Store Outward Register capturing

the vendor details, consignment details and quantity being outwarded.

Inter Store Stock Transfer refers to transferring of goods from one store to another

within the octroi limits. The reasons for inter stock transfer could be:

Fluctuating customer demand



Category initiated ± for newly open stores.

The steps involved in Inter Store Stock Transfer are as follow:

Having identified the no of merchandise required for particular category, it is the

duty of DM to send the requisition of required merchandise to zonal front end

category.

Front End Category then checks the availability of required merchandise across

all the stores within the octroi limits and accordingly raises the Stock Transfer

Order (STO) against sent requisition.

SAP system

Systems Applications and Products in Data Processing. A company that develops

software which allows businesses to track customer and business interactions. SAP

is well-known for its Enterprise Resource Management (ERM) and data

management programs.

Features & Functions of SAP system

Financial Supply Chain Management

The SAP Financial Supply Chain Management (SAP FSCM) set of applications

provides a complete, integrated solution for managing electronic customer billing

disputes, receivables, collections, and customer credit risk. SAP FSCM helps you

more effectively control your company's accounts receivable processes and ensurecash flows through online billing, more streamlined handling of billing disputes,

and collections.

Complete integration with core SAP ERP applications ensures that your

receivables and collections professionals have the most up-to-date data. So they



can resolve issues quickly ± resulting in accelerated cash flow and lower operating

expenses.

SAP FSCM includes the following applications:

y Credit management o Employs sophisticated tools to analyze customer credit worthiness and

establish policy

o Helps you avoid overdue accounts and bad debt losses by proactively

managing customer credit risk exposure

y Electronic invoicing and payments o Enables customer access to invoices, account status, and payment

information over the Internet

o Integrates seamlessly with your existing customer or supplier facing

portalsy Dispute management

o Resolves invoice disputes faster and more systematically

o Reduces days sales outstanding (DSO) and improve cash flows

y Collections management o Enables the more effective management of past due accounts

o Ensures faster collection of delinquent payments though prioritized

collections efforts

Conclusion

During my project period in Big Bazaar, I observed some common

but important thing. Big Bazaar Retail store

Working criteria is very different from other Retail stores like as

Reliance mart, vishal mega mart etc.

Big Bazaar Retail format is unique and all departments work in a

coordinate manner.



All five days I was working in SCM (supply

chain management). SCM play very vital

Role in Big Bazaar, I have observed that

how inventory come from PRIL warehouse

And from vendors and how to display the

product. And how SCM staffs handle all

Issue related in SCM.

So at last I learn many things and Iwish, it is very useful for my job career.

Thank you

























Synopsis of Bb

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