Project – 4 – Individual
Section – Supply Chain Management
Analyse the complete SCM flow of your company and if in case, your company does not have SCM process, take
any e- commerce company like Amazon, Flipkart, myntra etc. and analyse the same
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.
Below is an example of a very simple supply chain for a single product, where raw material is procured from vendors, transformed
into finished goods in a single step, and then transported to distribution centers, and ultimately, customers. Realistic supply chains
have multiple end products with shared components, facilities and capacities. The flow of materials is not always along an
arborescent network, various modes of transportation may be considered, and the bill of materials for the end items may be both deep
and large.
Project Selected: Big Bazar SCM flow studied/ analysed in the following presentation
Class Presentation
Supply Chain Management
Big Bazaar SCM
chain management
What is Supply Chain Concept?
"Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier Material Flow Customer
Management Management
Information Flow
Schedule / Stock
Resources Conversion Deployment Delivery
Big Bazaar SCM
Supplay chain management
Supply Chain Concept : Evolution
Traditional SC view
An efficient supply chain ensures that the products are on
the shelf, available for sale, when Shoppers come to buy
them ... all the time!
Modern SC View
An effective SC ensures high level of
Customer Service at optimum level of working
capital and cost!
So simple yet extremly demamding......
Big Bazaar SCM
Modern Supply Chain Concept
Demand Order Whousing Invoicing
Data Stock POS &
& Supply & Query & & Cash
Integrity Mgmt Display
Planning Mgmt Delivery Collection
CUSTOMER FOCUSSED
Supply Chain is integration of business processes and organisations around
“the entire demand and supply chain”
in servicing the customers and managing the inventories
Big Bazaar SCM
Supply Chain Structure
SUPPLIER FACTORY DC RDC RETAILER CUSTOMER
Raw Materials
Finished Goods
Information Flow
Supplier Manufacturer Distributor Retailer Customer
Upstream
Downstream
Big Bazaar SCM
Supply Chain Elements
• Supply Chain Design
Strategic • Resource Acquisition
• Long Term Planning (1 Year ++)
• Production/ Distribution Planning
• Resource Allocation
Tactical • Medium Term Planning (Quaterly/Monthly)
• Shipment Scheduling
Operational • Resource Scheduling
• Short Term Planning (Weekly/Daily)
Profile
Type Hypermarket
Founded 2001
Headquarters Jogeshwari, Mumbai
Industry Retail
Products Department, Grocery store
Promoter Mr. Kishore Biyani
Parent Pantaloon Retail India Limited
Punchline ‘Is se sasta aur accha kahin nahin’
Currently 100+ outlets
More than 30,000 employees
Organization Structure: Big Bazaar Zone
Organization Structure: Big Bazaar Store
Store Manager
Asst.Store Manager
Dept.Mgr HR Visual Merchant Administration Cashing InfoTech Mkt
Asst.Dept.Mgr Asst.HR Asst.VM Maintenance Cashier Security
Team Leader House Keeping
Team Member
PRODUCT MIX
HOME &
APPARELS FOOD FARM PRODUCE CHILL STATION PERSONAL CARE
DENIMS &
Staples Fruits Soft Drinks Shampoos
T-shirts
Fabrics & Cut Packaged
Ready to eat Vegetables Detergents
Piece Juices
Ready to Imported
Formal Wear Milk Items Soaps
Cook Fruits
International Dairy
Casual Wear Frozen Food Liquid Wash
Food Products
Party Wear Spices Ice creams Creams
Imported
Ethnic Wear Deodrants
Bazaar
Home
Accesories Tea & Coffee
Cleaners
Under
Utensils
garments
Night Wear Plastics
Dress
Crockery
Material
Sarees Sundries
PRODUCT MIX
ELECTRONICS Fashion & Furniture Child Care &
Other Services
bazaar Jewellery bazaar Toys
Television Footwear
Living Room Kids Wear mr. right
Sets Bazaar
Washing
Beauty Care Bed Room Toy Bazaar Bakery
Machines
Refrigerators Navaras Kitchen Stationery Loot Mart
Personal Care
Star Parivar Dining Hall Child Care Tulsi
(Shavers, etc)
Meena
mBazaar Kids Room future money
Bindre
future
Microwaves Bean Bags
generalli
Small
Paintings
Appliances
Decorative
Laptops
Items
Computer
Accessories
Kitchen
Appliances
Supplier
Warehouse
SUPPLY CHAIN - BIG BAZAAR
14 14
1 1 1 1 2 2 2 3 3 3 14 14
14 14
4 4 5 5 6 1 1 1
17 17 17 8 8 8 19 19 19
Supplier Inspection
7 7 8 8 9 9 9 10 10 22 22 22 22 22 23 23 23 23
Supplier 21 21 21
24
11 11 11 11 11 11 11
11 11 11 11 11 11 11
12 12 12 12 13 13 13
Quality Check
SODA SODA SODA SODA SODA SODA 25 25 25 25
Shelves
14 14
1 1 1 1 2 2 2 3 3 3 14 14
14 14
4 4 5 5 6 1 1 1
17 17 17 8 8 8 19 19 19
9 9 9 10 10 23 23 23 23
7 7 8 8 21 21 21 22 22 22 22 22
24
11 11 11 11 11 11 11
11 11 11 11 11 11 11
12 12 12 12 13 13 13 13
SODA SODA SODA SODA SODASODA SODA SODA 25 25 25 25
Supply Chain Process
Supplier Retailer Customer
Distributor/
Wholesaler
Manufacturer Transporter
Supply Chain Process
Supplier
Procurement cycle
Manufacturer
Manufacturing cycle
Distributor
Replenishment cycle
Retailer
Customer order cycle
Macro Processes in the SC of Big Bazaar
1. C.R.M. – Customer Relationship Management
• Market
• Price
• Sell
2. I.S.C.M. – Internal Supply Chain Management
• Strategic Planning
• Demand Planning
• Supply Planning
• Fulfillment
• Field Service
3.S.R.M.- Supplier Relationship Management
•Source
•Negotiate
•Buy
•Design Collaboration
•Supply Collaboration
SWOT Analysis: Big Bazaar SCM
Strengths Weaknesses
- State-of-the-art infrastructure - SCM in real sense yet to evolve
- Variety of formats supporting each other - Push mechanism in ordering
- Better understanding of Indian suppliers - Least focus on quality
Opportunities Threats
- Organized retail growing at >20% CAGR - Competitors like Wal-Mart and Carrefore
- Growing preference to organised shopping - Government policies
- Exponentially growing Indian middle class - Unorganized retail
Conclusion: Big Bazaar Supply Chain
1. The Big Bazaar distribution centres act as warehouses alone, unlike
Wal-Mart where these centres act as developers of suppliers.
3. There is no pull mechanism in order-generation and it depends
largely on the decisions by individual category managers on weekly
basis whereas in Wal-Mart, it is a daily pull mechanism based on
store consumption.
Thank You
