hussam yousuf kunju

8/9/2019 Hussam Yousuf Kunju

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RESEARCH REPORT

ON

SUPPLY CHAIN MANAGEMENT AT

BIG BAZAAR

COMMUNICATION &

INTERPERSONAL SKILLS

Submitted by: Mr

Hu!!"m Y#u!u$ Ku%u


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CIS REPORTSUPPLY CHAIN MANAGEMENT

Re' N#: PRO()MBA*+*

,-),,+

Se.ti#%: E

Guided by: /r Ar0i%d

A'"r1"2

ACKNOWLEDGEMENT

The satisfaction and elation that accompany the successful completion of any task would be

incomplete without thanking the people who have it possible. It is my privilege to express my

gratitude and respect to all those who have guided me and inspired me during the course of my

project.

I would like to express my sincere thanks to my guide Dr. Arvind Agarwal for guidance and

support.

Hussam Yousuf Kunju

Alliance School of Business


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Table of Contents

Sl.no Contents

1 NT!OD"CTON

# S"$$L% C&AN N 'G 'A(AA!

) *NDNGS

+ !ECOMMENDATONS

, CONCL"SON



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W- S/00l C-ain Manageent

,xperience shows that the gains to be made in cost& lead/ time and 0uality through working in

partnership with customers and suppliers are significant. In industry after industry one observes

that 123 to 423 of total costs are supplier related "material v's direct labor or overhead cost%.

!upplier lead times are longer than one)s own production lead times.

$oreover& customers use the products that are produced in much more predictable ways than it

first appear. The consumer products industry learned that it often incurred more costs thanbenefits through consumer promotions. They trained customers to wait for sale& then buy and

stock until the next sale. !wings in demand were amplified through the supply pipeline adding

costs as the bulge worked its way through the system. 5etail stores clogged backrooms with

warehouse or ran out of stock. 6istributors added warehouse to cover unexpected demand.

$anufacturers added finished goods warehouse& increased production through over time& and

put pressure on their suppliers to deliver more in short lead times.

7al $art broke the cycle with ,very/ day/ 8ow prices. 9 master in logistics& 7al mart

understood that it was more profitable to always offer the lowest competitive prices to the

consumers in return for more stable& predictable demand& The more predictable the demand the

easier its to synchroni:e activities to true customer demand throughout the supply chain. The

result is better on/time delivery& fewer stock outs& ( higher customer satisfaction with less

warehouse& reduced administration work ( lower overall costs.



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'enefits of S/00l C-ain Manageent

!#$ can help you transform a traditional linear supply chain into an adaptive network with the

following benefits.

7ith the increased visibility into the supply chain and adaptive supply chain network&

you can be more responsive. You can sense ( respond 0uickly to changes ( 0uickly

capitali:e into new opportunities.

;y offering common information framework that supports communication (

collaboration& !#$ enables you to better adapt to meet customer demands.

You can track and monitor compliance in areas as environment& health ( safety.

Information transparency ( real time business intelligence can lead to shorter cash to

cash cycle times. 5educed inventory levels and increased inventory turns across the

network can lower overall cost.

7ith !#$ you can lower operational costs with timelier planning for procurement&

manufacturing& ( transportation. tight connection with trading partners keep your supply chain aligned with current

business strategies and priorities& improving organi:ation)s overall performance.



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S"$$L% C&AN MANAGEMENT N 'G 'A(AA!


centrali:ed

purchasing in

bulk

Supplies

Depo ! "oo#

Ba$aa% Ie&s

Supplies Bi'

Ba$aa% Soc(

) Mainl*appa%els+

Supplies Onl*

"oo# Ba$aa%

Ie&s,

Cuso&e%s

Cuso&e%s

Cuso&e%s


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The above represented structure of the supply chain of ;ig ;a:aar is implemented in store by the

logistics department and the category people. ;oth these department go hand in hand in

managing stock intakes& warehouse management& outgoing stock and looking for efficient

suppliers. The below picture will help us understand to the supply chain management of ;ig

ba:aar.

6istributors'7holesalers

5etailers

#onsumers

The various terminologies used in the supply chain management of ;ig ;a:aar ;elgaum are

mentioned below

$"!C&ASE NDENT

5aising a indent is the first step in the supply chain in ;ig ;a:aar. 9 purchase indent is raised by

department heads of respective departments. It contains the list of goods that are re0uired by the

department. T he purchase indent may be raised when one or more goods are running out of

stock. The 0uantities mentioned in purchase indent are based on regular demand of those goods

or can even be based on the forecasted demand during the promotional period.


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$"!C&ASE O!DE!

9 purchase order represents the actual document which is used for placing orders with suppliers.

The suppliers' vendors need to comply with the various criteria regarding prices& 0uantities&

delivery time& etc. and have to supply the goods accordingly. 9 typical purchase order contains of

the following

?ame of the product its si:e'weight and other relevant specification.

#ost price of the item at which ;ig ;a:aar will buy the item from the vendors.

@9T' sales tax applicable on the item.

8anding rate which is the total cost price the store pays for particular item including the

@9T' sales tax.

The $5= which is printed on the item. It includes @9T.

Tax Invoice ?umber "TI?% for the purpose of vendors.



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*orat of $/r2-ase Order

@endor)s 9ddress =.< no

6ate

@endors no

#urrency

6elivered ;y =ay terms

=< expiry date

@9T no

Inco terms

6elivered to @9T ?o

#!T no

5ef



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9rticle

,9?

9rticle

number

9rticle

description

$5= ;asic

#ostprice

Tax 8anding

rate

Auantity Total

9mount

DSC!E$ANC% NOTE

This note is prepared when the stock of goods supplied by the supplier in response to the

purchase is being received " short' damage%. Its prepared in the following situations to partially

or wholly cancel the supply of goods by vendor.

7hen some or all the items are damaged in the supplied lot.

7hen the items are nearing their expiry date and cannot be sent to the floor for selling

purpose.

7hen the lot doesn)t contain the exact 0uantities of the items mentioned in the purchase

order.

7hen the $5= of the items supplied by the vendors differs from the $5= mentioned in

the purchase order.

7hen the items supplied do not comply with the various specification like si:e'weight

mentioned in the purchase order.



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STOCK T!ANS*E! NOTE"!T?%

!tock Transfer ?ote is the number given to the packages of the specific items sent by the #6# or

the 56#. Its important in identifying the packages of some specific items among the stock of

other items& its used for inter store' warehouse stock dispatches.

&ANDLNG "NT N"M'E!"HB?%

9 Handling Bnit ?umber is a number assigned to individual boxes' packages in order to manage

the number of packages while receiving goods from #6# and 56#. HB? number is very useful

in determining if boxes'packages are missing from supplied lot.

SCANNNG

,very in/warded item is scanned using the =


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>ood ba:aar vendor outward register

;ig ;a:aar vendor inward register

;ig ;a:aar vendor outward register

#6# food ba:aar inward register

56# ;ig ;a:aar inward register

;ar code register

>ree gifts register

!crap register

;ig ;a:aar vendor security inward security register

;ig ;a:aar warehouse security inward register

H!5I8 inward register

H!5I8 outward register ?on sale inward register

?on sale outward register

8ogistics 6epartment at ;ig ;a:aar store& ;elgaum

The logistics department of ;ig ;a:aar& ;elgaum houses two kinds of staff / the staff involved in

#ategory activities and the staff involved in the logistics activities. The 8ogistics department is

located on the ground floor of the store. It contains an office room for carrying out administrative

works related to logistics. It also contains a department office for the category staff. $oreover

there is big store room where stocks are received from suppliers and stored until they are cleared

to be sent to the floor for sales.

The job of the category staff is basically the pre delivery work which involves receiving purchase

indent from various department& making purchase order& finding a supplier and placing the order

and negotiating various contractual agreements with the suppliers.

once the stock supplied by the vendor reaches the shutters of ;ig ;a:aar store for delivery& the

work of the logistics staff starts. They inspect and receive the goods& store them& scan them and



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input their receipt in the computer system using =


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9s soon as the truck carrying goods from 56#'#6# arrives at ;ig ;a:aar

store& the security officer in 8ogistics department checks for the seal conditionand the number mentioned on the gate pass and delivery note.

Then the security officer checks the number of cartons.

The stock is unloaded from the truck by the logistics staff and the !T? and

HB? numbers are checked randomly.

?ow the particular department whose stocks have been received is been

informed regarding reception of goods and in response one or more

department staff is sent to logistics department to check the goods.

The departments staff then checks the items as mentioned in the !T?.

If any discrepancy is found regarding shortage or damage or expiry of the

goods& the department staff informs the logistics staff immediately.

In response the logistics informs the supply site about the discrepancy.

9ll the details of in/warding are recorded in the in/warding register both by the

security officer as well as the logistics manager.

The entry is done in a computer system in the logistics department regarding

the reception of goods by scanning each item.


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!ometimes the stocks get damaged during the transportation or the delivery process. The

damaged might have been caused before the goods have been delivered to the ;ig ;a:aarstore. ;ut due to some reason the damage is detected sometime after receiving those

goods& so in such cases as well as cases in which goods on floor have reached their expiry

date& the debit note is done either to the vendors or to the warehouse.

C% !et/rn of non7 saleable ites

?on/ saleable items are the items which are consumed internally not meant for sale.

ex #arry bags& security tags& bill rolls.

Important steps followed while receiving and storing the goods Mat2-ing M!$

The first step while receiving the goods from the vendors is to match the $5= printed on

the individual item with the $5= for that item mentioned in the purchase order. If the

two do not match then the delivered goods are rejected and discrepancy note is prepared.

C-e26ing t-e e50ir date

The expiry of perishable items is carefully checked and its made sure to maintain a safe

period of at least - months for selling of the item on the floor. If the item has almost

reached expiry date then its straight away rejected.

Co/nting of goods


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9 lot of care is taken while selecting the suppliers for the ;ig ;a:aar stores. >ollowing

criteria influence the selection process of the supplier

*% $ast re2ord ;efore an order to any supplier& his past records regarding the timely delivery&

safe delivery& responsiveness to complaints etc are considered.

+% New s/00lier 7hile selecting a new supplier following things are considered

The cost price at which the store is getting the goods from the supplier.

The profit margin the store can earn& which in turn is dependent on the cost price.The lead time of the supplier

The range of product the supplier can provide

!upplier capability for timely transportation

7hether the supplier is giving any discounts and offers on the products.

-% !et/rn 0oli2 The return policy is also an important criteria while placing orders with any

particular supplier. 9 supplier who is ready to take back the expired stocks& the non moving stock

or the damaged stock is very much preferable. This reduces the loss to the ;ig ;a:aar store in

form of unsold or expired stock which is disposed off immediately.



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S/00l C-ain at 'ig 'a8aar 9T-e 'ig DasF

The celebration of ;ig 6ays have been the most successful marketing strategy of ;ig ;a:aar till

date. The onset of ;ig days catapulted the already strong ;ig ;a:aar to ultimate peaks of Indian

retail industry. ,very year the ;ig ;a:aar store smashes the old record and creates a new record

in context of daily retail sale or total sale during 1 days of ;ig 6ays.

The ;ig days are celebrated from ++/ +4 Ganuary in all the stores across India. The ;ig days

concept was initiated to encourage the customers to come ;ig ;a:aar. To lure the customers ;ig

;a:aar gives huge discounts on all merchandise& and the strategy has worked like a charm. The

sales during these 1 days exceeds the total sales during the weekly sales of normal times.

;ut if we look beyond the attractiveness of ;ig days& we see a very tough schedule and tons of

hard work for ;ig ;a:aar employees who have to deal with sea of customers in matter of few

hours. $oreover its even tougher for supply chain' logistics staff that has to spend sleepless

nights to ensure availability of stocks at right time and right 0uantities.

They have to deal with supplies of stocks arriving within gaps of few minutes. !ometimes they

work late night to finish in/warding for particular day. Then proper and timely scanning and

entries to made is an herculean task. !ome minor mistakes and glitches do occur during ;ig days

because of sudden piling of manifold stock issues. ;ut on the whole the staff works with :eal n

dedication to make it a successful and make the customers glad with their service.

Ware-o/se to 'ig 'a8aar: 'elga/ 4

The warehouse in the ;ig ;a:aar is located in the logistics department. Here all the in/warded

stocks are stored until they have been cleared for sale. >ollowing are features of the warehouse

The >I>< techni0ue is used for sending of goods for sale.

Eenerally cyclical inventories are managed in ;ig ;a:aar.

In warehouse racks are available to store goods of different types and different

department.

The staff follows the practice / F=lace for everything and everything in placeF.



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$aximum care is taken to ensure that no damage of goods takes place during

in/warding of stock& storage and sending of goods to floor for sale. The stocks of various goods are stacked in a way to ensure uninterrupted

movement of material& men and e0uipment.

9s a result optimal utili:ation of available space is achieved.

$oreover due to proper arrangement of goods in the warehouse any item can

be easily located for any purpose by anybody.

The stocks received from the vendor and the stocks received from the 6# is

stacked separately to avoid confusion.

Eoods can easily be supervised in the warehouse because of proper layout and

arrangements.

The inventory level in warehouse is maintained within the specified norms.

Sto26 Ta6e!tock is the process of tallying the number of physical goods present on the floor with the

number of the goods which should be present according to the system data. The process of stock

take is used to find out the efficiency of business being carried out in stores. The stock is carried

out by special kind of staff employed by the >uture retail and is named and is named as >uture

Knowledge !ervices ">K!%. The stock is done once in C months

The procedure and the things that are considered in stock take are listed below

>irst& all the stocks in each of the department in the store is properly arranged

and each rack& container or bin is given a number.

?umber of total items sold in each department is counted.

?umber of items damaged on floor is found out.

?umber of items still present in each department on the floor is counted.

The total 0uantity is tallied with the total stock received and total stock sold as

stored in the system. 9s a result a figure in number is obtained which acts as the indicator of the

health of business being carried out in the store.

There can be following results from the stock take process



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*. S-rin6age This is the case when the physical stock counted on the floor is less than the

value showed by the system. !hrinkage up to 2.13 is tolerable and is considered normal in thecourse of business. ;ut if the shrinkage of the store is higher than this limit then it shows some

serious inefficiency in business process being carried out in the store starting right from in/

warding in the department.

+. E52ess This when the physical stock counted on the floor is more than the value showed by

the system. The case of stock may sound harmless but actually it is also harmful for store)s

business. This is because then the 0uantitative value achieved as a result of stock take shows the

number of stocks which do not actually exist physically& ( this results in negative stock & which

again is an indicator for store)s inefficiency in carrying out business. This situation may arise

because of tampering and misplacement of bar codes.

!ince the results of the stock take process are the critical measures of the store)s business

activities so its the responsibility of the store manager to ensure that the results of stock take are

favorable. ,0ually responsible is the logistics' cashier department because the inefficiency arise

out of faulty entries or scanning done by the logistics staff and wrong billing of article done by

the cashier will result in shrinkage. Thus extra care has to be taken by the logistics'cashier

department that all the scanning and tagging of items is done properly. $oreover correct entries

are to be done by logistics staff regarding in/warding and out/warding of stocks.



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*NDNGS

6uring my study of -2 days in ;ig ;a:aar& ;elgaum. I witnessed how retail store operates& what

are the functions of various administrative departments& how the departments coordinate with

each other to provide value to the customers and most important how the supply chain of the

store is managed.

In the logistics department of the ;ig ;a:aar store and gaining considerable knowledge about

their supply chain& I reali:ed why supply chain of any organi:ation is known as its

F;9#K;


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CONCL"SON

!upply chain management is indeed the most important organi:ational function

as all other activities are directly dependent on its proper functioning. supply chain is rightly called the Fbackbone or the HeartF of the retail sector.

improper supply chain would lead many obstacles and failure of ;ig ;a:aar.

7ithout proper supply chain ;ig 6ays would not really be so profitable.

The logistics department is the central point for in/warding and out/warding of

the goods. It has very dedicated and strong workforce and very resourceful management.

The period of ;ig 6ays is the time when the collective efforts of one and each

in the organi:ation are put forth and the actual capacity of its workforce is put

to test. There is lot of job security to the employees.

9 strong supply chain enabled ;ig ;a:aar to give bigger and better offers than

its competitors and hence given a edge over them.

''LOG!A$&%7ebsites

www.futuregroup.com

www.pantaloon.com

http://www.futuregroup.com/http://www.pantaloon.com/http://www.futuregroup.com/http://www.pantaloon.com/


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;ooks

=hilip Kotler/ $arketing $anagement.

=eter G. $c Eoldrick/ 5etail $arketing

hussam yousuf kunju

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