synopsis of bb
TRANSCRIPT
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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)
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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
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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
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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
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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
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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:
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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.
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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
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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
Basic Principle governing the process:
¢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:-
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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
Basic Principle governing the process:
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
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To:-
¢PRIL Warehouse
¢Vendor
Basic Principle governing the process:
¢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
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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.
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¢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
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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
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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.
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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
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