Supply Chain Management of Big Bazaar
Supply Chain Management of Big Bazaar
SUPPLY CHAIN
MANAGEMENT
B I G
B A Z A A R
SUBMITTED TO
Prof. VikramTrivedi
Logistics and Supply Chain Management
Submitted By:
1. Shubham Bangde 06
2. Carin Fernandes 21
3. Daisy Louis 31
4. NilmaPais 39
5. GauriVidhlani 48
6. Salina Sheikh 52
Submitted To:
Mr.Vikram Trivedi.
CERTIFICATE
ST. GONSALO GARCIA COLLEGE.
Introduction
A supply chain is a network of facilities and distribution options
that performs the functions of procurement of materials,
transformation of these materials into intermediate and finished
products, and the distribution of these finished products to
customers. Supply chains exist in both service and
manufacturing organizations, although the complexity of the
chain may vary greatly from industry to industry and firm to
firm.
Supply chain management (SCM) is the management of the
flow of goods and services. It includes the movement and
storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption.
Interconnected or interlinked networks, channels and
node businesses are involved in the provision
of products and services required by end customers in a supply
chain. Supply chain management has been defined as the
"design, planning, execution, control, and monitoring of supply
chain activities with the objective of creating net value, building
a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
globally."
SCM draws heavily from the areas of industrial
engineering, systems engineering, operations
management, logistics, procurement, and information
technology, and strives for an integrated approach.
The term "supply chain management" entered the public domain
when Keith Oliver, a consultant at Booz Allen Hamilton, used it
in an interview for the Financial Times in 1982. The term was
slow to take hold. It gained currency in the mid-1990s, when a
flurry of articles and books came out on the subject. In the late
1990s it rose to prominence as a management buzzword, and
operations managers began to use it in their titles with increasing
regularity.
Commonly accepted definitions of supply chain management
include:
Creation
The term "supply chain management" was first coined by
Keith Oliver in 1982. However, the concept of a supply
chain in management was of great importance long before,
in the early 20th century, especially with the creation of the
assembly line.
However, the term became widely adopted after the
publication of the seminal book Introduction to Supply
Chain Management in 1999 by Robert B.
Integration
This era of supply chain management studies was
highlighted with the development of electronic data
interchange (EDI) systems in the 1960s, and developed
through the 1990s by the introduction of enterprise resource
planning (ERP) systems. This era has continued to develop
into the 21st century with the expansion of Internet-based
collaborative systems. This era of supply chain evolution is
characterized by both increasing value added and cost
reductions through integration.
Globalization
The third movement of supply chain management
development, the globalization era, can be characterized by
the attention given to global systems of supplier
relationships and the expansion of supply chains beyond
national boundaries and into other continents. This era is
characterized by the globalization of supply chain
management in organizations with the goal of increasing
their competitive advantage, adding value, and reducing
costs through global sourcing.
Management of Inventory
One of the supply chain management features that you want to
look for is excellent inventory management. The software
should be able to maintain stability with tracking of inventory as
well as the finished goods. This function should also include the
ability to track materials needed for production and eliminate
any excess waste that may be costing your company extra
money. This will not only help with the reducing of cost spent
on materials, but also on the issue of storage.
Managing of Orders
Another of the key supply chain management features is the
ability to manage orders through your company. Your new
software should be able to manage an order from the time it is
placed until the time it is delivered as a finished product. This
helps make everyone accountable for the work they do as well
as keeping everyone working efficiently. This will improve your
customer service abilities when your customer sees that they are
still getting the same quality product but at a quicker rate.
Procurement
One key supply chain management feature is the ability to create
lasting relationships with your clients. In doing this you want to
make sure that all tasks associated with a particular order are
being tracked properly. This will help you not only in your
customer service area but also in the area of negotiating for
sales. If you are able to give a more definite finish date for a
product then you are more likely to earn their trust and win the
sale.
Logistics
As your company expands, you want to make sure your software
will expand with you. You want to make sure you have a supply
chain management feature that will allow your company room to
grow; whether locally or globally.
This will help to save your money in the long run because no
further software will need to be purchased to keep your
company running. Downtime can be the biggest cost to a
company and by choosing the right software you will not have
that worry on your shoulders.
Disadvantages
Sometimes Supply Chain Management can be very
expensive to implement.
Competitors can easily copy the strategy of Supply Chain
Management.
For better Supply Chain Management, proper skills and
experience is required to achieve success.
Sometimes in Supply Chain Management various functions
may be difficult to manage.
In Supply Chain Management there may be staff resistance.
Elements of the Supply Chain
A simple supply chain is made up of several elements that are
linked by the movement of products along it. The supply chain
starts and ends with the customer.
Participants:
1) Suppliers:-suppliers in big bazaar provide finished
goods that are to be sold in the retail store. Goods are
properly assembled by the supplier itself and then it reaches
to the factory.
2)Factory:- Factory is where all the finished goods are
stored and the goods such as wheat, rice etc are polished
and assembled, so that they could be easily sold into the
retail stores.
3) Distribution centre:- Big bazaar has a private warehouse
of distribution centre which is located in Bhiwandi from
here the goods are sent to redistribution centre. There are
around 19 outlets of big
bazaar all over mumbai.
4) Redistribution centre:-
Once the finished goods
reaches the redistribution
centre the goods are ready to get dispatch to retailers.
5) Retail stores:-A person or business that sells goods to
the public in relatively small quantities for use or
consumption rather than for resale whereas bib bazaar itself
is a retail store.
6)Customer:- They are the end receivers or users of the
product or service. At big bazaar mostly people from
middle class population are the customers where they buy
goods at discounted rates.
Receiving process
As there is no purchase of raw material, the receiving
process is not carried in the factory. It is operated in the
retail stores. The people who are involved are divided into
two phase. First phase involves a driver and a loader. These
people are sent by the distribution centre group. Then phase
2 involves a receiving associate who inspect the goods and
a receiving loader who unloads the goods from the vehicle
and these people are appointed by retail store.
Transportation process
The transportation process is totally handled by
distribution centre and suppliers. The cost of transportation
is based on the demand of stock by retailers
In terms of internal communication, the warehouses of
different Big Bazaars (different locations around
India) are connected with each other.
Whereas the individual Big Bazaar outlets coordinate
with their warehouses for daily stock requirements.
In situations where a Big Bazaar finds shortage in
any of the stocks, it uses the internal IS connected
through LAN to intimate its warehouse.
The warehouse supplies the required stock and
keeps its own stock also in check.
Warehouses utilize a REM (retail enterprise
management) system to facilitate this process.
The stocks are coded for simplicity and the
garments are coded using a 14 digit number.
While the stocks purchased from vendors use an alpha
numeric system beginning with two alphabets
(namely LP-Local Purchase,
OA for on approval and VC for vendor consignment) f
ollowed by 10 digits.
Each of the warehouses can order their stock in
three ways
(a)Through the headquarters
(b)Through another Big Bazaar warehouse
(c)Directly from their supplier.
However, the delivery challans will be stacked and sen
t to the HQevery month thus keeping the purchases in
check.
The warehouses communicate to each other on a
weekly basis to exchange their stock related
information.
(b)Big Bazaar is Centralized and Decentralized
Big bazaar is CENTRALISED as well as
DECENTRALISED.
CENTRALISED: It has its own warehouse in
Bhiwandi from where all the distribution from retail
store is done.
DECENTRALISED: Retail stores have their own
personal warehouse as well in order to store the
stocks.
FUNCTIONS OF WAREHOUSING DIAGRAM:
DISTRIBUTION CHANNEL
DISTRIBUTION TO WAREHOUSE
MANANGEMENT:Big Bazaar‘s distributions to
warehouse solution are focused on helping retail
outlets to create efficient and flexible supply chains to
deliver products to customers and with high level
of service.
Basically distribution is done as per the demand.
Traditionally, distribution has been seen as dealing
with how to get the product or service to the customer.
Distribution is done by distributor who is the
middleman between the manufacturer and retailer the
manufacturer and retailer.
lcm.csa.iisc.ernet.in/scm/supply_chain_intro.html
http://cerasis.com/2015/01/23/history-of-supply-chain-
management/
http://googleweblight.com/?
lite_url=http://www.reverselogisticstrends.com/reverse-
logistics.php&ei=4RouYofK&lc=en-
IN&s=1&m=235&host=www.google.co.in&ts=146937133
9&sig=AKOVD65bFAnZd1xnm1itcpbjs2t-kX2f1g
https://en.m.wikipedia.org/wiki/Supply_chain_management
https://en.m.wikipedia.org/wiki/Supply_chain_management
Annexure
1) What role does supply chain management plays and who
are the participants involved?