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Transcript of 4th Time Revised Sip Report
A STUDY ON INVENTORY MANAGEMENT AT
BIG BAZAR - UDUPI
Project report submitted in partial fulfillment of the requirement for the
MASTERS DEGREE IN
BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY
GANASH SHET
REGISTER NUMBER: 1116052
UNDER THE GUIDANCE OF
MRS PRATHIBHA SHETTY
Assistant Professor
ST. ALOYSIUS COLLEGE (AUTONOMOUS)
ALOYSIUS INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY(AIMIT)
MADOOR, MANGALORE-575022
2011-2013
St . Aloysius Institute of Management and information technology Page 1
A STUDY ON INVENTORY MANAGEMENT AT
BIG BAZAR- UDUPI
Project report submitted in partial fulfillment of the requirement for the
MASTERS DEGREE IN
BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY
GANESH SHET
REGISTER NUMBER: 1116052
UNDER THE GUIDANCE OF
MRS . PRATHIBHA SHETTY
Assistant Professor
ST. ALOYSIUS COLLEGE (AUTONOMOUS)
ALOYSIUS INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY(AIMIT)
MADOOR, MANGALORE-575022
2011-2013
St . Aloysius Institute of Management and information technology Page 2
ST. ALOYSIUS COLLEGE (AUTONOMOUS)
ALOYSIUS INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY (AIMIT)
MADOOR, MANGALORE-575022
CERTIFICATE
This is to certify that Mr. Ganesh Shet bearing Register Number: 1116052 is a bonafide
student of Master of Business Administration (MBA) course of this institute (2011-2013 batch).
The Project report titled “A STUDY ON INVENTORY MANAGEMENT AT BIG BAZAR”
is prepared by his under the guidance of Mrs. Prathibha Shetty in partial fulfillment of the
requirements for the degree of Master of Business Administration (MBA).
Professor & Dean
Place: Mangalore
Date: Chairman- MBA
St . Aloysius Institute of Management and information technology Page 3
Mrs. Prathibha ShettyAssistant ProfessorST. Aloysius College (Autonomous)Aloysius Institute of Management Information Technology (AIMIT)Mangalore
Date:10/11/2012
CERTIFICATE FROM THE GUIDE
This is to certify that the project “A Study on Inventory Management at BIG BAZAR” is a
bonafide work of Mr. Ganesh Shet Reg. No. 1116052 in partial fulfillment of the requirement
for the Master of Business Administration (MBA) under my research guidance.
Signature
St . Aloysius Institute of Management and information technology Page 4
DECLARATION
I, Mr. Ganesh Shet bearing Reg No. 1116052 hereby declare that the project entitled “STUDY
ON INVENTORY MANAGEMENT AT BIG BAZAR” has been prepared by me towards the
partial fulfillment of the requirements for the Master of Business Administration (MBA)
program under the guidance of Mrs. Prathibha Shetty
I also declare that this project report is my original work and has not previously formed the
basis for the award of any degree, diploma, associate ship, fellowship or other similar titles of
any other university.
Student Name & Signature:
Date: 10/11/2012 Ganesh Shet
Place: Mangalore Reg No: 1116052
St . Aloysius Institute of Management and information technology Page 5
ACKNOWLEDGEMENT
It all begins with one little word: thanks.
I’d like to start by thanking Almighty for blessing me so generously with so many gifts.
My gratitude to Rev. Fr. Denzil Lobo SJ, the Director of AIMIT.
My sincere gratitude to Rev. Dr. Oswald Mascarenhas SJ. for introducing me to problem centered research and also, for guiding me through to completion of this project.
To Dr. Rowena Wright, dean of MBA program and my internal guide Mrs. Prathibha Shetty, my sincere thanks for the necessary support and encouragement in completing my project.
I am greatly indebted to Ms. Henita Pinto HR Manager, for giving me an opportunity to carry out my project at big bazar and also to Mr. Arjun Rao (external guide) for all the support.
My most heartfelt and deep loving thanks to my parents and siblings and all others whose names I have not mentioned herein for being there at all times as a source of strength and support.
Signature
Ganesh Shet
Reg No: 1116052
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TABLE OF CONTENT
CHAPTER TITLEPAGE
NUMBER
Executive Summary
One Introduction
Two Problem Identification
Three Problem Formulation
Four Problem Specification
FiveProblem Resolution Alternative
Investigation
Six Data Analysis
Seven Vendors Details
Eight Best Problem Resolution Selection
Nine Conclusion
Ten Bibliography
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EXECUTIVE SUMMARY
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Big bazaar is the service industry. It gives service to the different types of customer. Big bazaar
is the subsidiary organization of future group company not only the Karnataka, but also over all
India they have so many branches. They have headquarters in Mumbai. It gives so many
employment opportunities in overall India. It is purely customer oriented business.
The report is on “INADEQUANCY FACED BY THE ORGANIZATION WHILE
MANAGING THE INVENTORY” study conducted in big bazaar the details pertaining to the
study is below
Big bazaar has positioned them as a retail store which offers variety of good quality products at
best prices. Big bazaar offers variety of brands in different segment like apparels, luggage,
accessories and consumer durable, home entertainments (CD, DVD, Home Theater, Speaker
etc.), electronics(laptops, mobiles, cameras etc.). sales promotion and advertisements are the
two main promotion strategies which big bazaar adopts, big bazaar has their own and localize
form for vendor selection. Big bazaar made payment to their vendors on their credit limit one to
three weeks depends upon the vendors.
In other details like industry profile, company profile, overview of retail industry to adopted the
vision, mission and core values to run the business, to helpful of swot analysis in a organization,
organization structure of big bazaar to specify and categorize the problem identification,
problem specification, problem formulation and alternative solution of problem.
Primary data has been collected by visiting big bazaar situated at UDUPI meeting various
personnel and vendors. Secondary data have been collected through websites. Key findings on
the basis of various parameters like vendor selection, stock assessment, terms and condition,
logistics, promotion strategies, positioning, and product mix of a company has been done
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CHAPTER: ONE
INTRODUCTION
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Industrial Profile :
Retail in India is on a cusp of transformation. Organized retailing as a professional service
oriented set-up, is a recent phenomenon in India but is growing at a tremendous pace with a
potential of creating over 2million jobs within the next six years, assuming an 8 to 10 percent
share of organized retailing in the total retail business. The fast changing retail environment
demands that professionals learn new skills, improve their efficiency, and learn to think out of
the box. As retailers work directly with the customers and there is need for good managerial
talent to interpret and satisfy the needs and desires of customers. All this requires an education
that is intensive, comprehensive and closely linked to the retail business world. The need is to
have a project, which has all the inherent features of a business management program and
includes experiential learning throughout the project.
An overview on retail revolution in India
Retail in India is on a cusp of transformation. Organized retailing as a professional service-
oriented set-up, is a recent phenomenon in India but is growing at a tremendous pace with a
potential of creating over 2 million new (direct) jobs within the next six years, assuming an 8 to
10 per cent share of organized retailing in the total retail business. The fast changing retail
environment demands that professionals learn new skills, improve their efficiency, learn to
compete and think out of the box. As retailers work directly with customers and there is need
for good managerial talent to interpret and satisfy the needs and desires of customers. All this
requires an education that is intensive, comprehensive and closely linked to the retail business
world. The need is to have a program which has all the inherent features of a business
management program and includes experiential learning throughout the program.
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Company Profile
Future group, led its founder & group CEO Mr. KISHORE BIYANI is one of India leading
business house with multiple business spanning across the consumption space. While retail
firms the core business activity of future group, group subsidiaries are present in consumer
finance, capital, insurance, brand development & entertainment. The first set of big bazaar store
open in 2001 in Kolkata, Hyderabad and Bangalore.
Pantaloons Retail is the flagship enterprise of the Future Group, which is positioned to cater to
the entire Indian consumption space. The Future Group operates through six verticals: Future
Retail (encompassing all retail businesses), Future Capital (financial products and services),
Future Brands (management of all brands owned or managed by group companies), Future
Space (management of retail real estate), Future Logistics (management of supply chain and
distribution) and Future Media (development and management of retail media). Future Capital
Holdings, the group's financial arm, focuses on asset management and consumer finance. It
manages two real estate investment funds (Horizon and Kshitij) and consumer-related private
equity fund, In division. It also plans to get into insurance, consumer credit and other consumer-
related financial products and services in the near future.
Big Bazaar
“Isse Sasta Aur Accha Kahin Nahi”
Big bazaar is consumer goods retail chain of future group. Future group also runs pantaloons,
lifestyle, EZONE, book depot, future bazaar, food bazaar, home town, fair price, brand factory
and central hypermarket. Future group is a subsidiary of PANTALOON retail INDIA limited
which is listed in NSE and BSE the most established stock markets in INDIA. Mr. KISHORE
BIYANI is the person behind big bazaar. He is CEO and md of PANTALOON retail INDIA
limited. Big bazaar is based on the concept of hypermarket or mega stores. In this kind of
hypermarket consumer get all the daily routine products under single roof. Big bazaar is having
more than 215 stores in more than 95 cities and towns.
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Big bazaar launched in INDIA with a bang by opening its 4 stores in 4 major cities
BENGALURU, INDORE, HYDERABAD and KOLKATA within a time span of just 22
days.Big bazaar was started in INDIA in September 2001. It is now 10 years when big bazaar
was started and has a huge number of stores all over INDIA .Big bazaar was started as a fashion
hypermarket which had apparels, accessories, cosmetics and general merchandise on sale. Later
on a huge range of other products was added to the list. This list includes FMCG products,
electronics, furniture, stationery, etc. These stores are established on big areas having huge
displays and providing cool and comfortable shopping experience to consumers. These stores
are based on the concept of WALMART USA.
The starting logo of big bazaar was ‘ISSE SASTA AUR ACCHA KAHIN NAHIN’. After
completion of its 10 years in retail market the company has given a new logo ‘NAYE INDIA
KA BAZAAR’. In these 10 years big bazaar has become favorites among housewives and other
group of consumers too. In overall it has become the favorite retail store of every Indian family.
Most of outlets of big bazaar are on an area of minimum 50,000 square feet. In bigger
metropolis there are some huge stores on an area of 160,000 square feet. Big bazaar express
stores in small towns are also on 30,000 square feet area only. Big bazaar also has its own house
brand also which it promote in its stores. The most famous of them are clean mate, tasty treat,
sensei etc. Big bazaar has some great promotional schemes too. It offers buy 1 get 1 free on
many products. There are huge discounts on MRP of many products. Big bazaar also has special
schemes on weekends and weekdays. They keep on promoting products by having special
display of products. Sampling and testing of many products is available in store. Many small
companies even launch their products through big bazaar. There are many schemes by various
companies which are available in big bazaar only. Big bazaar also provides consumer durables
on low EMI and interest free installments also.
Big Bazaar has clearly emerged as the favorite shopping destination for millions of its
consumers, across the country, it’s success is a true testament to the emotional bonding it has
established with the Indian consumer, on account of its value offerings, asp rational appeal and
service levels. We believe Big Bazaar is a true pan-Indian model that can enter into most towns
in India and democratize shopping everywhere. The company honored the consumer by calling
it the ‘Maha Savings Day’. Shoppers at all Big Bazaar and Food Bazaar outlets across the
country were offered products at prices never heard before in the history of shopping. The offers
were spread across categories from electronics to utensils, from apparel to furniture and food.
This event received tremendous response from the regular and an entirely new set of shoppers,
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which resulted in nearly 2 million people visiting the stores on that day. And most stores were
able to post record sales for a single day.
Vision
Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.
Mission
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail reality, making consumptions affordable for all customer segment for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.
Core Values
Indian ness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.
Simplicity & Positively: Simplicity and positively in our thought, business and action.
SWOT analysis of big bazaar
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A SWOT analysis is done to know the strengths, weaknesses, opportunities and threats of any
company. This analysis will explain about the strengths, weaknesses, opportunities and threats
of big bazaar.
Strengths of big bazaar
Large variety option
Affordable price
Huge customer Base
Volume sales
Every Wednesday Low Price
Weaknesses of big bazaar
Unable to provide enough parking space to its customers
Not enough space for shopping in big bazaar to its customer
Open warehouse to kept product and its nearby vehicle parking
Threats for big bazaar
Opening up of other discounted stores like Vishal mega mart
Convenience of customers to nearby kirana stores
Availability of products in other retail outlet
Opportunities for big bazaar
To open up more and more number of big bazaars in different cities of
the country.
To grab the rural market
To bring in the customers of other retail outlet by dealing with branded products.
Add more products to its product category
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ORGANIZATIONAL STRUCTURE OF THE STORE
STORE MANAGER
ASSISTANT STORE MANAGER
DEPARTMENT MANAGER
ASSISTANT DEPARTMENT MANAGER
TEAM LEADER
SALES PERSON OR PROMOTERS
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CHAPTER: TWO
PROBLEM IDENTIFICATION
“INADAQUECY FACED BY THE ORGANIZATION WHILE MANAGING THE INVENTORY”
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Inventory is a list for goods and materials or those goods and materials themselves, held
available in stock by a business. Inventory refers to any kind of resource having economic value
and is maintained to fulfill the recent and future needs of organization.
Acquiring an adequate supply assortment of merchandise from which customer can buy,
providing safety stock to meet unexpected demand or delay in inventory replenishment,
maintaining clear, correct and current records, purchasing the proper assortment of goods in
quantities that will maintain inventory level consistent with business requirements while
providing adequate safety stocks, reducing excessive inventories maintain promptly so that the
realized from clearing overstocks can be invested in merchandise with a greater market potential
these are maintain big bazaar in inventory management system.
From industry scanning we come to know that problem is of maintaining proper inventories as
the customers who visit the store in Udupi does not have any alternative or substitutes available
to Big bazaar store. Big Bazaar could not cope up to manage the stock due to the non-
availability of certain goods like cereals pulses and various goods to customers at right time in a
right place as the store has more than 1000 types of products so they face difficulty in
maintaining inventories in order to serve the customer this in turn leads to customer
dissatisfaction.
The above mentioned problem is identified via industry scanning and interacting with customers
who visit Big bazar especially when there is a Wednesday bazar every week Big bazar
announces the Wednesday bazar as the customer tend to come to the store but after coming they
face difficulties in finding the products required by them and problem has been identified by
information provided by store authorities as they face difficulties in getting several goods in
required quantity at right time. e.g., you are in trouble if you have to keep telling customers,
"I'm sorry we're out of that size. May we order it for you?" Even though the shirts are selling
briskly, you will lose customers if you don't have an item in stock. When the customer spends,
you have got to be ready with the goods. This is what inventory management is all about. In
many retail and wholesale operations, the single largest asset is inventory. Control of this
investment is vital. It will eliminate a number of the problems associated with capital shortages
and will also provide capital to permit expansion of operations for increased sales and profit.
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CHAPTER: THREE
PROBLEM FORMULATION
Controllable variables
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Communication
In communication floor incharge looks after the requirements of the different sections on the
floor available. These requirements are then passed on to the team leader and based on these
requirements fill up the requirements sent to purchase order and sent to the supplier only after
the prior approval of the department manager. Validity of the purchase order is three days. It
means that if any supplier fails to deliver the product within three days of order being made,
then the vendor will have to get a new purchase order. Quantity supplied by the supplier can be
less than what has been ordered by the company but not more than the order. Finally based on
the purchase order bill is made by the vendor. MRP cannot be changed. If MRP changes then
purchase order will have to be amended and big bazaar will have to change all its system for
billing purpose for that specific vendor.
Supply chain management
The supply chain process is operated by central distribution channel from there goods are
supplied to every big bazaar store. There is separate distribution channel for electronics and
furniture, which is known as home solution retail india limited, located at Bangalore. Udupi big
bazaar those unit also receives goods from local vendors unit.
Capacity of production
The logistics department receives the stock of different goods and verifies the quantity and
quality of the goods with the particulars given in the goods received statement, which it receives
along with the stock.
Cash management
They make payment directly through head office that is located in Mumbai. Branches of big
bazaar only makes list of required goods then they send that order to vendors by that way
vendors collects invoice amount from big bazaar head office.
Technology employed
SAP
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Big bazaar runs SAP one of the leading ERP solution provider. ERP means enterprise resource
planning, a software solution for various activities like inventory management, billing, supply
chain management.
Billing software/ Payment counter
The executive at the counter most probably is extremely busy and tries best to type in as fast as
possible ending up in putting up wrong quantities also be sure about the price of the particular
item selected. Cash back services neither reverse credit card enters. All the product billing
system Computerized and printout of item bill which have buy the product
Efficient sales management
Seeing problems from the customer’s perspective and see what is exact wants and needs of
customers on the basis of customer want. To find the problems and try to solve it efficiently and
effectively. Example: managing customers like “moments of truth” communicating effectively
through better listening, analyzing how customer perceptions are formed, managing anger and
other services behavior, dealing with long term consequences of services breakdowns,
negotiating solutions, generating an action plan for improved on the job effectiveness.
Uncontrollable variables
Delivery system
Big bazaar category maintains the flow of material from vendor to store or from vendor to
warehouse to store. Category keeps does not receive any demand order from store or
warehouse. Actually category keeps the record of movement of flow of material from
warehouse to store and also per day and per week sale on the floor, on the basis of this data and
also from market research, category estimates the demand of customer and makes purchase
order to the vendor.
Damage of goods
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Check for any damage in the stock received , if there is no damage in the stock after recording it
in the “stock inward register” dispatches the goods to the respective department. If there is a
damage goods and goods do not match the details given in the goods received statement it
enters in the stock outward register and send it back to the warehouse along with a goods
returned note giving full information regarding the reason for returning back the goods and the
defect or damage in the goods.
Customer needs taste and preferences
It is an important element of a sales process, every company should survey their customers in
order to find out the satisfaction level among the consumers. Big bazaar also conducts periodic
survey in order to ascertain the satisfaction level in their consumers. Various activities are done
in order to enhance the shopping experience among buyers and various offers, discount
coupons, existing customers special coupons are given to customers who can be redeemed by
the customers in their future purchase from the store.
Supplier polices
While paying vendors have different payment structure based on different brands. As per their
negotiation made during agreement for example if it in the case of Hindustan Uniliver limited
make payment once in a week likewise in other brands Wipro, Dabur Amol Nestle, Sunfeast,
Britania And Parle have fifteen days period payment system.
Competition
In the retail market have very cut through competitions from various competitors like Tata’s star
bazaar, Reliance more, Shoppers stop, In-Orbit, Crossword, Hyper city, Lifestyle, Subhiksha,
Vishal mega mart, Nilgerie’s and so on.
Threat of substitute products
Low branded products like imitators adapters and local merchants have greater impact on this
substitute product like Ganesh soap, Shashi soap etc.
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CHAPTER: FOUR
PROBLEM SPECIFICATION
Sales management is connected with the cash management as the debtor receivables
increase the inflow of cash there by increasing the efficiency of sales management.
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Technology employed in the unit is correlated with the capacity of production and also
with supply chain management as when advanced technology is employed then the
sufficient goods can be supplied to customers.
Capacity of production is correlated with the sales management as and when production
of goods are done according to the demands of customers then the sales can be managed
easily.
Delivery system is correlated with the damage of goods as the goods are supplied with
via vans which are not custom designed to safeguard goods while transporting them to
far and near places.
Customer needs and preferences are interconnected with the threat of substitute products
as and when there is constant research on customer needs and preferences then there is
no chance of having threat for substitute products.
Supplier policies are interconnected with customer preferences as the company should
foresee that supplier policy is flexible to meet customer needs and preferences.
Communication is interconnected with delivery of goods as the goods can be delivered
within a stipulated time provided by the customer at the time of billing electronically.
Supply chain management is connected with the damage of goods as the goods are
supplied via vans which are not custom designed to safe guard goods and services.
Capacity of production is interconnected with customer needs and preferences as and
when the customer needs and preferences are known constantly through research then
the production can be increased or decreased according to customer needs and
preferences
Cash management is interconnected with supplier policies, the company must foresee
that the supplier’s policies are flexible so that there is sufficient amount of inflow of
funds for facilitating the increase of sales knowing customer preferences.
Competition is interconnected with technology as the competition can be beaten only
through implementing advanced technology which can satisfy customers by fulfilling
their preferences.
Sales management is interconnected with the threat of substitute products as the sales of
managed i.e. when they are made available according to customer needs and preferences
then customer don’t look for substitutes.
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CHAPTER: FIVE
PROBLEM – RESOLUTION ALTERNATIVES
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Training of employees is essential in order to foresee that customer needs and
preferences are met efficiently and also towards understanding of what exactly customer
needs and what are his wants by communicating with him and also collecting instant
feedback from the customer plays an important role towards continuous improvement.
Getting products from other branches of Big Bazar when products are not supplied by
the supplier at right time then the Big Bazar has to get the products from other branches
of Big bazar stationed at Mangalore, Mysore, and Hubli.
Minimize the non-moving item Big Bazar has to find the nonmoving product and
eliminate it from the stores by doing so there is redundancy in carrying cost of the item
and new item can be replaced with that of eliminated one.
Payment are to be made on time Big bazar has to revise it debtors policy and utilize the
same for meeting the short term liabilities so that there is sufficient inflow of required
goods from suppliers at right time.
Maintain optimum stock in the stores Big bazar has to maintain optimum stock by
employing various inventory techniques like FIFO LIFO and JIT so that the requirement
of customers are met efficiently.
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CHAPTER: SIX
RESEARCH METHODOLOGY
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Objectives of the study
To study on facing maintaining the inventory problem
To study on inventory management
To find out the how the maintain the stock
To find out the vendors payments system
To identify main competitors of big bazaar
Scope of the study
This report is based on the study conducted at big bazaar, Udupi
Methodology adopted for the study
Observing the working of various departments and understanding the operational strategies
followed by the company. Discussion with the managers and employees. Visiting and surfing
website of the company.
Sources of data
Primary data
The data collected for the first time through observation and interview method. The data is
collected by observing the working of various departments and also by interviewing the
managers of all the departments. It is also obtained by the help of staff members.
Secondary data
The data is collected by secondary sources company website.
Personal interview
Types of inventories maintained
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The inventories maintained in the outlet of different product category. Mainly cycle inventory is
maintained for FMCG product category and FOOD category; safety level of inventory for
FMCG product and for apparel, seasonal inventory is maintained, because of fluctuation in
demand.
Decision of inventories are maintained
The store manager inspects the stocks time to time and also the demand of customers. Manager
maintains the stock in and stock out, so that the store manager can decide the level of inventory.
Manager also has seen the trends in the requirement, for e.g. appeals are ordered approximately
after one week and it is computerized dispatch system for purchase order. Big bazaar has
undergone tremendous technological advancement, as its supply chain has become completely
computerized. Once the product is sold automatically, the computer sends the request for back
up.
Uncertain demands of customers
The uncertain demands are met by either by getting it through other outlet of big bazaar or
through transfer of interest, to other outlets of future group like pantaloons.
Supply chain of perishable and imperishable goods
Perishable goods like vegetables are maintained with great care. Vegetables are bought on daily
basis on the demand and seasonal item. Whereas imperishable goods like utensils and staple
goods and electronic items are brought from the distribution channel used in supply chain
process is operated by central distribution channel from their goods are supplied to big bazaar
store. The modes of transportation which are used in supply chain process. Local vendors are
delivered goods their own vehicles which is staple goods.
Operational strategies followed by retail outlet to attract more customers
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The strategy for attracting customers gives discount offer, when discount offers given by
manufactures to big bazaar and after keeping a safe margin of profit, they release the items on
discounts. They also give ads in television, go for promotional activities and put banners on
road sides. However once the customers is inside the store, then also strategies keep changing.
They keep thing in places where they see for longer duration for e.g. near comers of turning on
cash counter.
Area of maintenance
The store is fully computerized like billing, inventory management, electronic equipment’s near
the gates to check thieves; it has to take proper care of machines. Food items are to be regularly
checked, inventory room has to be checked regularly for any sort of leakages. Inventory room
has open godown it’s near vehicle parking.
Quality of food items
Food items are kept in separate places, both in inventory and at store. Food items which are
required to be kept at cold places, like cold drinks, cheese, milk, fruits etc. are kept in
refrigerators, whereas those which can be kept anyway, are kept on proper shelves.
Raising a purchase order to vendor
Big bazaar category maintains the flow of material from vendor to store or from vendor to
warehouse to store. Category does not receive any demand order from store or warehouse.
Actually category keeps the record of movement of flow of material from warehouse to store
and also per day and per week sale on the basis of this data and also from market research,
category estimates the demand of customer and makes purchase order to the vendor.
Mode of payment
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Payments are made to the vendors through direct credit to vendors within a week its dependent
upon the vendors rules and regulation the credit period enjoyed by big bazaar is normally one
week or three weeks. Company directly transfers the bill amount to the vendors account.
Logistics
a) Transport
Vendors are responsible for the transportation of the goods and responsible for every damages
and expiry of the product and any mishappening. If the product are branded then the vendor has
the upper hand, big bazaar has to take pain for the display of such product and if the products
are not branded then the vendor will have to take pain for the display of their product.
b) warehousing
Company has its own warehouse but warehouse is not enough as orders are placed frequently.
Different store of big bazaar has different warehouse. Once the product reaches the warehouse it
is checked by the warehouse incharge and inward checklist is filled. This checklist includes
like; Purchase Order Number, Vendor Name, Invoice Number, Date, Quantity and Amount.
Invoice check, Purchase order check and Quality check: date of manufacturing, date of expiry,
batch number, ISI mark / EGG mark.
Promotion strategies
Sales promotion and advertisement are the two main promotion strategies which big bazaar
adopts. Prices of every goods in the store are available at less than what it is available at any
other store, Wednesday bazaar Hafte Ka Sabse Sasta Din, providing various goods at the lesser
price as compare to the other days in the week. The great exchange offer, i.e. exchange any old
item and get anything new at much lower prices. Customer get coupon in exchange to avail of
this offer. This is one of the best strategies adopted by big bazaar.
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CHAPTER: SEVEN
VENDORS DETAILS IN UDUPI
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VENDOR BRAND
Growell Enterprises, Mangalore HUL
Ocean Distributor, Udupi NESTLE
Mass Trader, Udupi ITC
Amazon Distributor, Udupi P&G
Henkel Market Ltd, Bangalore HENKEL
Modern Distributor, Udupi AMUL
Vijay Associates, Udupi GODREJ
Kamath Distributor, Udupi PEPSI
Hindustan Coca Cola Beverage COCA COLA
Ben And Company BRITANIA
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CHAPTER: EIGHT
BEST PROBLEM RESOLUTION SELECTION
Payment are to be made on time Big bazar has to revise it debtors policy and utilize the
same for meeting the short term liabilities so that there is sufficient inflow of required
goods from suppliers at right time.
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Getting products from other branches of Big Bazar when products are not supplied by
the supplier at right time then the Big Bazar has to get the products from other branches
of big bazar stationed at Mangalore, Mysore, and Hubli.
Maintain the optimum stock of goods when their they needed.
To use the KANBAN system for every store that finds out the quantity of goods because
in foreign country they use this system to find out the fault of problem.
.
To use the LIFO and FIFO system because a company that operates on the FIFO
principle has a policy of displaying and selling old stock before selling newly acquired
stock such polices make sense when a business sells fresh food or items that may go out
of fashion, grocery store. For example often own refrigerated cases that make it easy to
stock items from the back, pushing older products forward where shoppers are more
likely to see and buy them.
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CHAPTER: NINE
CONCLUSION
Big bazaar is a major shopping complex for today’s customers. It is a place where customers
find variety of products at a reasonable price. Big bazaar has a good reputation of itself in the
market.it has positioned itself in the market as a discounted store. It holds a huge customer base.
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The majority of customers belong to middle class family. The youth generation also likes
shopping and moving around big bazaar volume sales always take place in big bazaar,
maintained enough stock of product.
Big bazaar is a hypermarket as it provides various kinds of goods like apparels, grocery,
stationery, food items, electronic items, leather items, watches, jeweler, crockery, decorative
items, sport items, chocolates and many more. It competes with all the specialty stores of
different products which provide goods at a discounted rate all through the year. Now there are
more than 96 big bazaar in different cities of India, it seems that there is a vast growth of big
bazaar lying as customers demand is increasing for big bazaar.
Big bazaar is a hypermarket store where varieties of products are being sold on different
product category. It has emerged as a hub of shopping specialty for middle class people.
Different types of products starting from a baby food to pizzas all are available under one roof.
It is the middle class people who mostly do marketing from big bazaar. Grocery, apparels and
food items are the products which are demanded most by the customers of big bazaar. It seems
that the biggest competitors of big bazaar are the Kirana Stores, discounted specialty stores like
Vishal Mega Mart, The Tata Groups(Croma), Reliance Retail etc.
The problem of competition is increasing in global market places. It has forced the firms to
consider ways of improving the inventory control system. Severe competition makes it
necessary to continuously introduce new products and new designs of products. Now a day
every company will faces the competitions, because of that every company maintains a flexible
inventory system.it will depend upon how the company will respond to the fast changing market
needs, customer expectation and technological advancement.
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CHAPTER: TEN
BIBLIOGRAPHY
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WEBSITE :
http://www.pantaloon.com/bigbazaar.htm - 22/7/2012
http://en.wikipedia.org/wiki/Big_Bazaar - 12/08/2012
www. pantaloons retail (india) limited.html - 25/7/2012
http://dc313.4shared.com/doc/ukhePFJ5/preview.html - 4/11/2012
http://www.wisegeek.org/what-is-lifo-and-fifo.htm - 6/11/2012
Personal interview:
Mr. Arjun Rao (purchase category manager)
Mr. Manoj (logistics category manager)
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