Bata Supply Chain (2)

7/31/2019 Bata Supply Chain (2)

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EXECUTIVE SUMMARY

Bata is a footwear brand in the country with a presence in almost 400 cities. The brand offers arange of stylish comfortable and trendy footwear at affordable prices ensuring that there issomething for everyone in the store.

This project report examines the distribution channels of Bata India ltd. It also gives a detailedrepresentation of the supply chain management of Bata India ltd. The project report includesthe distribution channel structure of Bata India ltd. It also throws light on the product form andlogistics of Bata India ltd. The major key points on which the report focuses are:

1) Distribution channel structure of Bata

2) Structure of channel partners3) Physical distribution, management

4) Information flow

The above points have been further analysed and give information on the channel members of Bata, how is the product marketed and how is the channel managed. It talks about the channelconflicts that occur and the pricing strategies. The report also talks about other details of thesupply chain management like the physical distribution management which includes who isresponsible for designing and setting up the channel and various costs involved like thelogistics cost and the distribution costs and what are the payment terms and debtors control andthe management of warehouses if any.

The project report also contains the critical analysis such as the supply management, demandmanagement and the speed of processes for complaints regarding supplies.

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CONTENTS

Topic Page No.

Introduction 41. Distribution Channel 51.1 Structure 51.2 Product Form 51.3 Logistics 6

2. Channel Partners 62.1 Product Marketing 6

2.2 Channel Participants 62.3 Channel Structure 72.4 Channel Management 72.5 Channel Conflict 72.6 Pricing Strategies 7

3. Physical Distribution Management 83.1 Distribution Management 83.2 Logistics 83.3 Warehouse 83.4 Payment Detail 8

4. Communication/ Information flow 94.1 Inventory Data 94.2 Sales Data 95. Supply Management 105.1 Speed of processes for complaints regarding supplies 10

CONCLUSION 11

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INTRODUCTION

ABOUT BATA:Bata India is a footwear manufacturing company incorporated in 1931.The Company wasearlier known as Bata shoe Company which later in 1973 changed the name to BATA INDIA .

The company manufactures footwear for men, women and children. The companymanufactures shoes of various quality such as leather, rubber, canvas and PVC shoes.

Bata Group has worldwide presence across 5 continents, serving 1 million customers perday and operating 4,600 retails stores globally.

Prior to incorporation of Bata footwear were manufactured by handicrafts and small enterprisesectors. The company started with its small operation unit at Konnagar (near Calcutta) in 1932.

Currently it has five factories located at Batanagar (west Bengal), Bataganj (Bihar), Faridabad(Haryana), Peenya (Karnataka) and Hosur (Tamil nadu).

VISION:

Grow as dynamic, innovative and market driven manufacturer and distributor, with footwear

industry while maintaining a commitment to the country, culture , and environment in whichthey cooperate.

MISSION:

To be successful as the most dynamic, flexible and market responsive organization, withfootwear as its core business

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Distribution Channel

Organisational Structure:

Product line

Deals in various products which includes

Formal Shoes

Causal shoes

Slippers

But Our Main Concern is formal shoes. It has huge product line which includes products for middle age customer.

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GeneralManager

AREA SALESMG

ManagerFinance

SALESEXECUTIVES

ManagerOperations

ManagerSales


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Logistics

If we talk about logistics then we can say we are doing our core business and this work is

given to third party, we have done contracts with other companies who have done this business as their core job.

CHANNEL PARTNERS

There are no such channel partners of BATA, as all the stores are maintained by the companyitself.

But if talk about the stores of BATA then there are 300 stores of FLAGSHIP that covers premium segment, and 660 stores of FAMILY that contains all the segments of BATA

To keep a check on these stores 25 members are employed on this work 9 members keep aneye on flagship and 16 members keep an eye on family products.

PRODUCT MARKETING

BATA has not taken care of all the marketing strategy of their product dealers dont have domuch on marketing part all is done by BATA himself. BATA promote their product viaadvertising. There are different media through which BATA advertise their product they are:

T.V. ADVERTISEMENT

NEWSPAPERS

MAGAZINES

All this kind of promotion techniques is hold by the BATA Hoardings :

BANNERS

AMPHLETS DISTRIBUTION

So the product is marketed by both manufacturer and the dealers. But the major difference isthat the manufacturer markets the product in huge scale and dealers in a very small scale.

CHANNEL PARTICIPANTS

A channel participant in BATA is only the distributors. There is one level channel distributionwhich moves from manufacturer to dealer then to end customers. BATA selects there

distributors under some terms and condition like:

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Location

Space

CHANNEL STRUCTURE :

This is the simple structure followed by the BATA

CHANNEL MANAGEMENT

In the channel management main thing is the channel co-ordination so the BATA co-ordinatewith their distributors, by understanding and resolving their problem in the channel. In generalBATA deliver the product on time, so that the dealer doesnt have much problem with their customer and it also defines the good relation between the manufacturer and the dealers. Due tothis the dealers are also motivated to sell the product efficiently to the customer.

CHANNEL CONFLICT

There is no such conflict between the BATA and the dealers, because all roles andresponsibility is predefined by the BATA. The only problem which occured few time is thedelivery process on time which is easily resolved by the company.

PRICING STRATEGIES

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MANUFACTURER

DISTRIBUTIONCENTRE

RETAIL STORES


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Pricing of the products and the dealers commission is predefined by the company, dealersdoesnt have to do much on the pricing part of the vehicles. All the discounts and offer is predefined by BATA, and if dealers want to give some discount to their customer then there is notconcern of the company that dealer have to bear that.

PHYSICAL DISTRIBUTION MANAGEMENT:

There is no such physical distribution management maintained by the BATA as they have thesimple process of:

MANUFACTURER

DISTRIBUTOR CENTRE

RETAILERS

Every delivery is done by the company as they have hired the third party for this work and thenwhen the product reaches to the retailer sale take place.

LOGISTICS OF BATA:

As we have discussed earlier also that they have the contract with the third party logisticscompany they have their contract on annual basis and they are liable to make delivery on timeand are responsible for all dealing related to transportation and delivery.

Important data is that there transportation cost is 3.5% of the turnover.

WAREHOUSING OF BATA

All the warehouses are maintained by the company itself; they dont hire any on the buildingfor their warehouse. The company operates a number of warehouses across the country. It hasregional warehouses in all over the India. Company has ware house management departmentfor all the warehouses. They keep inventory for next 13 weeks.

PAYMENT DETAILS

As all the payment details are online and on delivery both bases but if talk about the payment period then it is 90 days max not more than that.

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COMMUNICATION/INFORMATION FLOW

1ST information flows from:

And then

INVENTORY DATA

Inventory data is managed by both the manufacturer and the dealer

Dealers of BATA maintain their inventory through software which is provided by the BATAand that software is directly connected to the server of the BATA so that the company can tracewhat actually the dealer is doing. It also shows to the company that which product is excess andwhich product is short to the dealers.

SALES DATA

Sales data is maintained by the dealer through software which is provided by the company.Any product is sale the entry of that product is done in the software. This sales data contains allthe information about the customer and the dealer, information like:

NAME, ADDRESS & TELEPHONE NUMBER OF THE CUSTOMER

PRICE

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DISTRIBUTION

CENTRE

MANUFACTUR CUSTOMERS

DISTRIBUTIONCENTRE

CUSTOMERS MANUFACTUR


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PRODUCT CODE

SALES PERSON NAME

DEALER NAME

AND OTHER INFORMATION

Supply Management :

Order Fulfilling Time

As soon the order is placed then the company takes the time period of 7 10 days to make thedelivery

Minimum Order Quantity

It depends on the retailers they have to work according to the company but they can go on their way also but it affects the profitability of the retailers.

Period of Shortage

There is never shortage of products in the shop as demand is always equal to supply.

Period of Excess

Mainly every product is kept with more pieces but if there is excess then it is sold out throughsale.

Speed of Processes for Complaints Regarding Supplies:

As we have discussed with the dealer, the dealer said that there is no as such complaintsregarding supplies from the company side.

The main problem which we face in supply can be due to:

WEATHER CONDITIONS

OTHER FACTORS LIKE MANUFACTURING PROBLEM

TRANSPORT STRIKES

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CONCLUSION:

Bata India is a family shoe store which manufactures shoes for Men, Women and children. Ithas a huge product line catering the needs of middle income customers. The company itself

manages its stores minus any channel partner. Bata has used various promotional media toreach out to the customers. Distributor is the only channel participant in Bata that too one leveldistribution which moved from manufacturer to dealer and then to the final customers.

Delivering product on time is what Bata has always considered important which has further strengthened their relationship with dealers. All the discounts, offerings and dealerscommission is predetermined by Bata. The third party logistics are responsible for delivering

products on time to various retailers. Inventory data is managed by both manufacturer anddealer through a software which is connected to the server of Bata. So, the supply chainmanagement of Bata is simple which helps in delivering goods on time thus making happy to

dealers. A company can always make it big when things are managed with a completesurveillance in every process which has proven in case of Bata.

Reference

www.bata.in

Interviewed Person

Mr. Shumir Oliver Abraham (Distribution Manager)

Mobile No.- 9871092925

Address- Bata India Limited, Bata House, 418/02, Sector- 17, Gurgaon

E-mail: [email protected]

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http://www.bata.in/http://www.bata.in/

Bata Supply Chain (2)

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