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SUPPLY CHAIN MANAGEMENT

AT PANTALOON RETAIL INDIA LTD. (BIG BAZAAR)

A PROJECT REPORT
Under the guidance Of Dr. Nishikant Jha
______________________________
Submitted by
Mr. Anil R Bambhania
Roll No—510929526

______________________________
in partial fulfilment of the requirement

for the award of the degree

Of

MBA
IN
[Finance]

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November’2010

Declaration

I hereby declare that the project report titled ‘’SUPPLY CHAIN


MANAGEMENT OF BIG BAZAAR’’ is my own work and has been carried under the
guidance of Mr. ANOOP NAIDU (Industry Guide) and Dr. NISHIKANT JHA - Faculty
Study Circle. Report is submitted in fulfilment for the award of post graduate program. All
care has been taken to keep this report error free and I sincerely regret for any unintended
discrepancies that might have crept into this report. I shall be highly obliged if errors (if any)
be brought to my attention.

Thanking you.

Anil R Bambhania

E-mail:- anil_bambhania@yahoo.com

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Sr. no. Table of Content Page no:
1 Executive Summary 6
2 What is Retailing 8
3 Company Introduction (Pantaloon Retail India Ltd.) 15
4 Supply Chain Management
4.1 Supply chain Process 24
4.2 Supply chain of Big Bazaar 29
5 Number of Register Maintain in Store Warehouse 40
6 Documents 42
8 Three flows in Supply chain 48
9 Transportation of material in Big Bazaar 51
10 Concept of Warehousing in Big Bazaar 52
11 Material Handling cost 58

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13 Central Warehouse (C.D.C. Mumbai) 60
14 Some terms in supply chain of Big Bazaar 66
15 Research Methodology 76
16 Analysis 78
17 Findings 87
18 SWOT Analysis 89
19 Objective with Questionnaire 90
20 Bibliography 95

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Acknowledgement

Undertaking any project in life proves to be a milestone in more ways than one. Its
successful completion reifies on a myriad of people & their priceless help.

Project work in never the work of an individual, it is more of a combination of views,


suggestions &contribution of many individuals. Thus one of the most pleasant parts of doing
this project is the opportunity to thank all these who have contributed towards successful
completion of this project.

I take this opportunity to thank the Pantaloon Retail India Ltd.( BIG BAZAAR) to give me
this chance to know about the back bone of the retail industry. It has been a pleasurable
experience filled with knowledge & awareness to take part in this project. This project would
not have been successful without the guidance of my industrial project guide Mr. ANOOP
NAIDU who has provided me time, out of his busy schedule. Further I would also like to
thank whole team of Big Bazaar for their co-operation & guidance at field. Without the
support of these wonderful people I would never had completed my project successfully &
learning would never have turned interesting.

Last but not the least I would like to thank the whole team of Pantaloon Group
Retail India Ltd for so much supportive nature and also to Mr. Vinay Shroff – Head Supply
Chain Management – Future Group.

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Bonafide Certificate:

BONAFIDE CERTIFICATE

Certified that this project report titled “SUPPLY CHAIN MANAGEMENT OF BIG
BAZAAR” is the bonafide work of “Anil Ramesh Bambhania” who carried out the
project work under my supervision.

SIGNATURE SIGNATURE

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HEAD OF THE DEPARTMENT FACULTY IN CHARGE

(SIKKIM MANIPAL UNIVERSITY)

Executive summary

I have undertaken this study for my project work to fulfil the requirement of MBA Degree
course through Sikkim Manipal University hence the theme of my project is based on the
supply chain department of Pantaloon Retail India Ltd. (Big Bazaar) Mumbai a unit of
future group.

As supply chain is a very big area to cover in just sixty days, so I formulate a complete
supply chain of Big Bazaar and divide my work in store ware house, floor, and central ware
house. Firstly I spend some time on floor and see the customer buying behaviour, customer
preference, customer need etc.,the visualisation part done by the V.M. and floor team
arrangement of the material on the floor to attract the customers.

In current business scenario S.C.M. is very big and major problem for retail industry.
Second part of my job was to work in store ware house where I have seen the complete
receiving of the material and documentation process by following all the rules of S.O.P. In
the store ware house I have seen the inwarding of the material on SAP with different
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commands, how to make G.R.N. of the material and post all the documents to the
commercial office. Here I have seen how to make S.T.O.

Third part of my job was to work with Central Ware House team. In ware house I try to
understand whole process of supply chain and logistics, their way of working. Here I have
seen in warding, racking, out warding, segregation and maintenance of the stock physically
as well as in SAP.

Then finally I have done market research on buying behaviour of customers towards three
main players of the retail industry.Questionaire is customer oriented in spite of vendor
oriented because according to me customer is the king of supply chain. Supply chain
circulates with the flow of information in terms of need of the customers. I made
questionnaire and did a survey by filling the questionnaires and get findings from the result
of these questionnaires. By the help of these findings I came to know that before entering in
to a retail outlet customer weighs that retail outlet on some parameters. By the help of
findings from questionnaires I came to know the sequence and weighing of these parameters
preferred by the customers. Big Bazaar is on the right track by using these parameters for
being customer oriented.

After the above studies and insight of the workings a few hindrances where spotted but
on an overall we can say that the store is quite well maintained.

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What is Retailing
Retailing is the distribution channel function where on organisation buys products from
supplying firms and manufacture the product themselves and then sell these directly to
consumers. Retailer is also reseller-obtain the product from one party in order to sell to other.
The term "Retailing" refers to any activity that involves a sale to an individual customer. In

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India, the unorganized retailing sector comprises of 96.5% while that of organized sector just
3.5% that is mainly in major metropolitan and urban areas. Indian retailing traditionally
dominated by a small family run "Kirana" store. Retailing in India is the second largest
untapped market after China. Professional management and strong customer focus
characterize organized retailing.

Concept- To woo the customer to the store retailers are providing a wide range of product,
Quality, and value for money, apart from creating a memorable shopping experience.
Organized retailing has made a considerable headway in product like food & groceries,
clothing books, and music.

Five things for the retailer-

1. Customer satisfaction
2. Ability to acquire right product
3. Product presentation
4. Traffic building
5. Keeping pace with technology

The leading Indian retail player are-

1. Westside (Tata)
2. Pantaloon
3. Big Bazaar
4. Food bazaar(PRIL)
5. Food world(RPG)
6. Shopper's stop(Raheja Group)

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7. Reliance fresh
8. Visual mega mart
9. Life style
10. Ebony
11. Hyper city
12. Honey well
13. Subhiksha

Different format of retail-

1. Mom-and-pop stores: These are generally family-owned businesses catering to small


sections of society. They are small, individually run and handled retail outlets.

2. Category killers: Small specialty stores have expanded to offer a range of categories.
They have widened their vision in terms of the number of categories. They are called
category killers as they specialize in their fields, such as electronics (Best Buy) and
sporting goods (Sport Authority).

3. Department stores: These are the general merchandise retailers offering various
kinds of quality products and services. These do not offer full service category
products and some carry a selective product line. K Raheja's Shoppers Stop is a good
example of department stores. Other examples are Lifestyle and Westside. These
stores have further categories, such as home and décor, clothing, groceries, toys, etc.

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4. Malls: These are the largest form of retail formats. They provide an ideal shopping
experience by providing a mix of all kinds of products and services, food and
entertainment under one roof. Examples are Sahara Mall, TDI Mall in Delhi.

5. Specialty Stores: The retail chains, which deal in specific categories and provide
deep assortment in them are specialty stores. Examples are RPG's Music World,
Mumbai's bookstore Crossword, etc.

6. Discount stores: These are the stores or factory outlets that provide discount on the
MRP items. They focus on mass selling and reaching economies of scale or selling
the stock left after the season is over.

7. Hypermarkets/ Supermarkets: These are generally large self-service outlets, offering


a variety of categories with deep assortments. These stores contribute 30% of all food
and grocery organized retail sales. Example: Big Bazaar.

8. Convenience stores: They are comparatively smaller stores located near residential
areas. They are open for an extended period of the day and have a limited variety of
stock and convenience products. Prices are slightly higher due to the convenience
given to the customers.

9. E-tailers: These are retailers that provide online facility of buying and selling
products and services via Internet. They provide a picture and description of the
product. A lot of such retailers are booming in the industry, as this method provides
convenience and a wide variety for customer. But it does not provide a feel of the
product and is sometimes not authentic. Examples are Amazon.com, eBay.com, etc.

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10. Vending: Smaller products such as beverages, snacks are some the items that can be
bought through vending machines. At present, it is not very common in India.

View of a retail store-

To have a clear picture and understanding of any matter it is very important to approach it
from the grass root level therefore to understand retail in depth it becomes important to deal
first hand with the customers to whom you shall be catering to. Moreover the retail store is
the final destination of all retail operations, so it again becomes important to know the
handling, operations and various dealings at the basic store level. The employees, from the
sales staff to the store manager, need to be highly customer driven and have the efficiency to
meet the ever rising customer expectations. How can employees meet these rising customer
expectations and alongside maintain efficiency of resources. The employees need to be well
informed about stock availability, reorder points, latest trends, customer expectations,
competitor strategies etc.

To meet such stiff competition retailers need to follow a hybrid approach which involves
both standardization and customization of processes and services respectively as and when
the need arises.

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The retail staff needs to be highly customer driven and their efforts should not be aimed at
making a sale but at earning a loyal customer for it is rightly said that 80% of the sale comes
from 20% of the customers.

Retail is all about size. If you look at retail companies, margins are thin. So it is important to
grow to such a size that even if margins improve by ten basis points, the impact on the
bottom-line is large.

Therefore the processes need to be consumer friendly and apt according to the cost reduction
and revenue generation policies of the company. Though the consumer behaviour is
something that is highly unpredictable it needs to be motivated continuously for the benefit
of the organization and definitely the customer too.

Why retail is booming in India-

1. Cultural habits changing –people are acquiring Western look


2. New retail format development to incorporate, Changing attitudes like
“Having a good time” attitude driving growth of pubs, clubs, coffeebars, and fastfood
joints etc.
3. Increasing awareness and spending on grooming and lifestyle.
4. High disposable incomes
5. Reduction in import tariffs, excise duty
6. More competition leading to fall in prices
7. Before liberalization many consumer durables were not available – Government
disallowed imports of most products – Luxury items banned/had high import tariffs
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8. Post liberalization :- Enhanced availability of superior quality goods at affordable
prices.
9. Two incidental factors Spread of cable and satellite television influencing consumer
behavior.

Changing retail scenario-

Demand = Ability + willingness to spend;


Market = Demand + supply

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Company introduction

Pantaloon Retail India Ltd.


Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai (Bombay), the company operates over 10 million square feet of
retail space, has over 1,000 stores across 61 cities in India and employs over 30,000 people.

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The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look,
touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and
quality and Central, a chain of seamless destination malls. Some of its other formats include
Depot, Shoe Factory, Brand Factory, Blue Sky, and Star and Sitara. The company also
operates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a
large-format home solutions store, Collection i, selling home furniture products and E-Zone
focused on catering to the consumer electronics segment.

Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-
based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007
at the World Retail Congress held in Barcelona.

Pantaloon Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space.

Future group-

Future Group is one of the country’s leading business groups present in retail, asset
management, consumer finance, insurance, retail media, retail spaces and logistics. The
group’s flagship company, Pantaloon Retail (India) Limited operates over 10 million square
feet of retail space, has over 1,000 stores and employs over 30,000 people. Future Group is
present in 61 cities and 65 rural locations in India

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Some of the awards given to Pantaloon Retail (India) Limited:
Images Retail Awards 2005
PRIL - Most admired retailer of the year
Central - Retail launch of the year
Mr. Kishore Biyani - Retail Face of the year
Big Bazaar - Best Value Retail Store
Readers Digest and Awaaz Consumer Award
Big Bazaar - Best Retail Destination
Readers Digest Platinum Trusted Brand Award
Big Bazaar - Earning a trusted Place in the everyday lives of consumers
Food Bazaar - Retailer of the year (food and grocery
Big Bazaar - Most preferred, large, Food and Grocery store

Partner companies
Pantaloon Industries Ltd.
Home Solutions Retail (India) Ltd.
Future Capital Holdings
Converge M Retail (India) Ltd.
Indus League Clothing Ltd.
Galaxy Entertainment Corporate Ltd.

Joint Ventures Companies


Planet Retail Holdings Ltd.
Foot mart Retail
GJ Future Fashions
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CapitaLand Retail India
ETAM Future Fashions India Pvt. Ltd.

Lines of Business

The company is present across several lines of business which have various formats (stores)
operational under it. These include:

• Food – Food Bazaar, Chamosa, Spoon

• Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10

• General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics Bazaar, Furniture
Bazaar

• Home & Electronics - Home Town, eZone, Collection 1

• E-tailing (Online Shopping) - www.futurebazaar.com

• Books & Music - Depot

• Leisure & Entertainment - Bowling Co., F123 Wellness - Star & Sitara, Tulsi

BIG BAZAAR

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Big Bazaar is a hypermarket consists of extremely large self-service retail outlet with a
warehouse appearance, currently with 104 outlets in India. It is owned by the Pantaloon
Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart- based in
United States and has considerable success in many Indian cities and small towns. The idea
was pioneered by entrepreneur Kishore Biyani the CEO of Future Group. Currently Big
Bazaar stores are located only in India. It is the biggest and the fastest growing chain of
hypermarket stores and aims at being 350 stores by the end of year 2010.

Tag line- “Is se sasta aur achha kahin nahi!”

Different categories-

1. Apparel, fashion and accessories

2. Books and magazines

3. Bike and automotive

4. Camera and photo

5. Desk top, lap top and accessories

6. Furniture and decor

7. Gift and credit card vouchers

8. Health beauty and personal care

9. Jewellory and watches

10. Kitchen and home appliances

11. Mobile and service provider

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12. Music and mp3 player

13. Software cds and vcds

14. Toys sports and video games

15. Other miscellaneous items

Big Bazaar’s Commitment

Our commitment is to deliver sustained growth, through empowered people, acting with
responsibility and building trust with customers. Here’s I am explaining what this means:

Sustained Growth is fundamental to motivating and measuring our success. Big Bazaar’s
quest for sustained growth stimulates innovation, places a value on results, and helps us
understand whether today’s actions will contribute to our future. It is about growth of people
and company performance. It prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that you feel will
get the job done, while being consistent with the processes that ensure proper governance
and being mindful of the rest of the company’s needs.

Responsibility and Trust form the foundation for healthy growth. It’s about earning the
confidence that other people place in us as individuals and as a company. Our responsibility
means we take personal and corporate ownership for all we do, to be good stewards of the
resources entrusted to us. We build trust between ourselves and customers by talking not by
mouth but by our superior customer service and being committed to succeeding together.

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Range of Products Available at Big Bazaar

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Places at which Big Bazaar is Located

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Future Strategies of Big Bazaar

Life Cycle of Big Bazaar

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Source :- www.aza

Source: - www.azadsikander.blogspot.com

Supply Chain Management

Supply chain process

SUPPLIER
CUSTOMER
RETAILER

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MANUFACTURER

TRANSPOR
TER
As we know supply chain is the back bone of any industry. A supply chain consists of all
parties involved directly or indirectly in fulfilling a customer request. The supply chain
includes not only the manufacturer or supplier part but also transporter, ware house and
customer part. In retail especially supply chain begins with the customer and his or her need
for the product. In retail supply chain involved in receiving and filling a customer request.

As we know customer is an integral part of the supply chain.In fact the primary part of any
supply chain is to satisfy customer needs and in precess generate profit for itself. The term
supply chain conjures u[ images of product or supply moving from to manufacturer to
distributer to retailer to customer along a chain. This is certainly part of supply chain, but it is
also important to visualize information, funds and products flows along both directions of
this chain.

In reality a manufacturer may receive material from several suppliers and then supply
several distributers. A supply chain may include a variety of stages;

1. Customer
2. Retailer
3. Wholesaler/distributer
4. Manufacturer
5. Component/raw material supplier

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Supply chain process-

Supplier

Procurement cycle

Manufacturer

Manufacturing cycle

Distributor

Replenishment cycle

Retailer

Customer order cycle


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Customer

Supply Chain Management

Supply Chain Management covers the planning and management of all activities involved in
sourcing, procurement, conversion, logistics and Distribution. It also includes coordination
and collaboration with channel partners, which can be suppliers, intermediaries, third-party
service providers, and customers.

Objective of every supply chain should be to maximize the overall value generated. The
value a supply chain generates is the difference between what the final product is worth to
the customer and the costs the supply chain incurs in filling the customer’s request.

Three macro processes in the supply chain of Big Bazaar-

In the Big Bazaar supply chain activities belong to one of three macro processes;

1. C.R.M.-All processes that focus on interface between the firm and its customers
a. Market
b. Price
c. sell
1. I.S.C.M.-All processes those are internal to the firm.
a. Strategic planning
b. Demand planning
c. Supply planning
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d. Fulfilment
e. Field service
1. S.R.M.-All processes that focus on the interface between the firm and its suppliers.
a. Source
b. Negotiate
c. Buy
d. Design collaboration
e. Supply collaboration

In the supply chain of any retailer the supplier does not play any role. Supply chain design,
planning and operation decisions play a significant role in the success or failure of Big
Bazaar. From its beginning, the Big Bazaar invested heavily in transportation and
information infrastructure to facilitate the effective flow of goods and information. Big
Bazaar designed its supply chain with clusters of stores around distribution centres to
facilitate frequent replenishment at its retail stores in a cost effective manner. Frequent
replenishment allows stores to match supply and demand more effectively than the
competition.

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Supply chain of Big Bazaar
Raising a purchase order to the vendor
by the category (In head office and
zonal office)

Delivery of the required (negotiated)


stock to the store or ware house by the
help of transporter (at company’s
expense)

Receiving of the material at the store Receiving of the material


Pageat32
the
of central
91
with all the required documents ware house (C.D.C.) Mumbai
Document check by the security at the Weighing, counting of cartoons,
gate and in ward register is maintained generation of I.R. no. by putting
by following all the rules of S.O.P. information on SAP

Compare the material with the Stamp on P.O.D. copy and return to the
documents, stamp the documents, write transporter
information with signature of the

Transfer of the material to the store Pre in- warding by scanning the material
ware house against the inbound no. by E.A.N. and
article no.

Generation of the G.R.N. of the material Post in warding by generating G.R.N. of


after the scanning on S.A.P. as well as the in warded stock.
on REM against article no. or EAN
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Maintain in ward register by putting all Segregation of the material (M.C. wise
the required information and category wise)

Send the stock to the flour as per the Racking of the material by giving
requirement location to the rack as well as to the box
(for the maintenance of the W.M.S.

Send all the documents to the Out warding of the material from central
commercial office for the preparation of ware house to the store, after receiving
MIRO sheet (send to head office for S.T.O. from the store.

Posting of all the documents comes with


the stock from vendor, as well as comes
with S.T.N. to the commercial office for
the payment purpose and record.

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Receiving of the material at the store
against S.T.N.

1) Raising a purchase order to vendor-

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Big Bazaar category maintains the flow of material from vendor to store or from vendor to
ware house to store. Category does not receive any demand order from store or ware house.
Actually category keeps the record of movement of flow of material from ware house to
store & also per day & per week sale on the flour. On the basis of this data & also from
market research, category estimates the demand of customer & makes purchase order to the
vendor.

When we open a store we call different vendors then after negotiation with vendor on prices
& other condition & schemes we provides them, vendor registration no. so purchase order is
made against this vendor no.& then vendor give us information about no. of items presents in
their manufacturing ware house for supply and we register those items by vender code.

Mapping :-

The process of determining locations and adjacencies of departments and merchandise inside
a store.

2. Delivery of the required (negotiated) stock to the store or ware house by the help of
transporter (at Big Bazaar expense)-

After receiving purchase order from the category, vendor delivers the material to the given
location (store or ware house) by the help of transporter hired by the vendor (transportation
at vendor’s expense) with the invoice copy and purchase order copy.

Document bring by the transporter with the stock are-

1. Consignee copy
2. P.O.D. copy
3. Purchase order
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4. Invoice copy
5. A.S.N. copy
6. Quality check
7. Way bill (Out of state)

Conditions-

1.Material should be according to the quantity given in the purchase order.

2.Delivery should be at time.

3.Vehicle should be sealed pack at the time of delivery.

Packing guidelines-

1. Net weight of the packet should not be more than 25 kg.


2. BOPP tapes should be printed
3. Packaging with stretched wrapping
4. Packaging should be dry
5. Label pasted on the packages should be clearly visible

3. Receiving of the material at the Big Bazaar (Mumbai) store with all the required
documents-

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Category makes purchase order for the store directly in case of immediate requirement and
local vendor. Especially in case of mobiles the material comes against invoice. Generally at
store material is received against S.T.N. Material is received from vendor against invoice by
following all the rules of S.O.P. Firstly gate keeper check all the documents necessary at the
gate & compare the material with the invoice.

Paper check-

1. Receiving site
2. Supplying site
3. Invoice no.
4. H.U. no.
5. Material on paper
6. Gate pass
7. Cartoon counting

Gate keeper sign & stamp the document (invoice copy and purchase order copy) .After that
transfer the material to store ware house where G.R.N. of the material is done after scanning
by the ware house person. This G.R.N. no. is written on the invoice copy with date and
quantity .According to S.O.P., date of receiving has been written on the cartoon received by
the ware house person .Scanning of the material is done against each EAN no. and article no.
in REM as well as in SAP. An inward register is maintained by the ware house people as
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well as by the security guard to keep the record of the inward material. Then after counting
of material, it is send to the store to sell. For the security purpose security tags stitched on the
material. Different types of tags with sensor are punched on the items. Tags are punched on
items having cost more than Rs.99.

1. Hard tags-on cloths(Magnetic tags)


2. String tag-on cloths
3. Soft tags-especially on plastic, crockery, electronics etc.

All the material is designed on the Racks and

1. Gandola
2. Gap table
3. D- unit
4. Four arms unit
5. Eight arms unit
6. Step table
7. Bins
8. Hyper bins
9. Wall hanging

V.M. plays an important role in designing and visualization of the material on floor.

What is visual merchandisation?

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Visual merchandisation is briefly defined as presentation of a store and its merchandise in
ways that will attract the attention of potential customers and motivates them to make
purchase.

Purpose of visual merchandising-

1. Increase turnover

2. Image building

3. Influence buying behavior

4. Satisfy customers

Role of visual merchandising-

To put forward the best of merchandise highlight in terms of colour, quality, and price in the
most aesthetically appealing way with 100% clarity.

To ensure that all the information is communicated in an informed, friendly and helpful and
selling mode.

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Arranged merchandise Easy to find Easy to
pick

Aesthetically pleasing

Easy to buy

4. Documents to commercial-

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After the whole process in Big Bazaar (Mumbai) store ware house, the entire documents
send to local commercial office for the payment purpose as well as for the record.
Commercial people maintain a MIRO sheet and send this sheet to head office where category
and commercial make cheque and send to local commercial and then commercial pay to the
vendor only by cheque. Payment by the local commercial is done only in case of invoice.

5. Receiving of the material at the central ware house (C.D.C.) Mumbai –

Material is delivered (out ward) by vendor to the CDC Mumbai (central ware house) by the
hired transporter with all the documentation. This time transporter is at the expense of
vendor. Material is received by the central ware house C.D.C. Mumbai by follow all the
rules of S.O.P. After that they do in warding of the material followed by racking,
segregation & out ward the material to nearest located store(Big Bazaar Mumbai in this case)
against S.T.O. In case of Big Bazaar (Mumbai) the stock comes from central ware house
C.D.C. Mumbai (Dewas Naka).

Receiving of the material is done by the security in the ware house. First of all documents
are matched with the material. L.R. no. on the consignee copy should match with L.R. no. on
cartoons. Material is weighed by the security person at the receiving gate and actual weight
is been written on the P.O.D. and consignee copy. This is for the reason that we pay to the
vendor according to this actual weight. After that we fill all the information in SAP and
generate inbound register no. and write this no. on inward register. Then security stamp on
POD copy and return it to transporter. Then material is send inside for pre in warding, where
scanning of the material is done.

Post in warding is the next step in which we do the G.R.N. of the material and forward this
material for the segregation .After segregation all the material is designed on the racks.
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6. Out warding of the material from central ware house to the store, after receiving
S.T.O. from the store-

Central ware house people outward the material after receiving S.T.O. from the Big Bazaar
store. Ware house people generate the S.T.N. document and after packing of the material
they stick new H.U. no. on the cartoons (on which information and description of the
material is given) and load this material in the truck to deliver to the store. They send the
copy of S.T.N. and gate pass with the material to the store.

7. Document sends to commercial-

All the documents received by the central ware house people should send to local
commercial for the payment purpose as well as for the record before outing of the material.

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Number of Register Maintained in Store Warehouse

Check list for Big Bazaar Mumbai-

1. Salable items-

1. Inward
2. Outward
3. Return to ware house
4. Return to vendor
5. Security inward
6. Security outward
7. Discrepancy register
8. Stock handover register

2. Non saleable register-

1. Inward
2. Outward
3. Damage tags register
4. Tags flow maintenance
5. Tags requisition format
6. Inward

3. SIS-
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1. Inward
2. Outward

4. Damage-

1. Ware house damage


2. Return to ware house

5. Others-

1. Returnable goods
2. NSM requisition
3. Free gift

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Documents

Invoice (bill)- Invoice is the document send by the vendor with purchase order. Invoice
consists of the details of the product and gives us the information about the material sended
by the vendor and its rate and amount.

Invoice document consist of –

1. Site address
2. Consignee
3. Buyer
4. Invoice no.
5. delivery note
6. Supplier reference

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7. Buyers order no.
8. Destination
9. Term of delivery mode/term of payment/date
10. Description of goods
11. Quantity
12. Rate
13. Discount%
14. Amount
15. total

Gate pass-

Gate pass is the document for the entry to the store. It consists of following things.

1. Gate pass no.


2. Date
3. Site name
4. Delivery no.
5. Quantity
6. Packages
7. Total
8. Vehicle no.

Gate pass consist of a stamp of Big Bazaar contains following

1. Security inward no. date

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2. No. of cartoons
3. Time
4. Signature of security

S.T.N.-

S.T.N. is the document generate by the central ware house people when they outward the
material to the store. They send this document with the material. It consists of the following
things-

1. Delivery no.
2. Delivery date
3. Delivery note
4. L.R. name
5. L.R. date
6. Party address
7. Article description
8. Article no.
9. M.R.P.
10. Cost
11. Quantity
12. Amount
13. Total
14. LST/VAT Tin no.

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S.T.N. consists of two stamps; one of in warding and second of out warding. And stamp
consists of

1. Security inward no./outward no.


2. Date
3. Quantity
4. No. of cartoons
5. P.O. no.
6. G.R.N. date
7. Vehicle no.
8. Security name and signature

L.R. copy (consignee copy)- This copy mainly consists of consignee no. and the
instruction given on the back side of the document, other things mentioned over this
document are

1. Delivery instructions
2. S.T.(TIN NO.)
3. Invoice no.
4. Date
5. Invoice value
6. Delivery site
7. Booking office address
8. Weight of the material

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S

Ware house

Vendor
S

s s
S S

Ware house
s

S Ware house

s
Ware house

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In the supply chain of Big Bazaar mapping of the vendor is done by negotiating on the price,
quantity and quality. Vendor is provided with a vendor registration no. Category receives the
data of demand of material and makes purchase order to the vendor. Category purchases the
S
material always in bulk to reduce the cost price of the material. With the help of the diagram
S
above I want to explain the whole scenario and role of central ware house in the supply
chain.

For the storage of the material purchased by the category, they have two options. First they
can make purchase order directly to the central ware houses from where they can deliver the
material to the respective stores. Second they can store the material in the mother distribution
centre or regional distribution centre (if the material is for a specific zone).And can deliver
the material to the respective ware houses and from ware houses to the stores.

If we take the example of C.D.C. Mumbai, supplying stock to Big Bazaar Mumbai, Suppose
category has purchase 1000 pre pack of the formal shirts for the Big Bazaar Mumbai. Then
in this case category will make purchase order directly for the central ware house Mumbai.
Transportation of the material is done at the company’s expense. Central ware house
Mumbai will transfer the required stock of the shirts to store (especially 40% of the stock is
transferred to the store; rest of the stock will be transfer at the next need).

But the real supply chain come in to play when category purchase the stock in bulk. In the
above diagram vendor is supplying shirts to all the eleven big bazaar stores.Acoording to the
negotiating terms category have purchase eleven thousand pre pack of shirts for all these
registered stores in winter season. Then category will generate purchase order to the vendor
for the four central ware houses supplying the stock to these eleven stores. These four central
ware houses control the flow chain of the material for these eleven stores. These central ware

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houses will receive the stock and will transfer the required quantity to the stores. Rest of the
quantity will be stored in these ware houses for the future immediate requirement. Material at
the time of need is transferred to the store against S.T.O. These central ware houses control
nearest stores to minimize the expenditure of transportation. Concept of ware housing is to
fulfil immediate requirement and storage of the material.

Three flows in Supply chain

A supply chain is dynamic and involved the constant flow of information, products and
funds between different stages.

If we see in case of big bazaar provides the products as well as pricing and availability of
information to the customer. The customer transfer funds to the big bazaar by purchasing the
product present at the store.

Big bazaar conveys point of sales data as well as replenishment order to the ware house or
category that make purchase order to the vendor who transfer the replenishment order via
truck (transporter) to the store. Big bazaar transfer funds to vender after the
replenishment.Information is the driver that serves as nervous system to create a coordinated
supply chain. It is life-line of SCM.Information must have the following characteristics to be
useful:

1. Information should be accurate.


2. Information should be accessible in a timely manner.

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3. Information must be of the right kind.
4. Information provides the basis for supply chain management decision like
a. Inventory Transportation

b. Facility

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Transportation of material in Big bazaar-

S1

Ware
Vendor house 1 S2

S3

Ware
house-2
S4

Transportation at Big Bazaar expense Transportation at big bazaar expense

Transportation-

1. Transportation is movement of goods from one location to another.

2. Transportation is the main artery of logistics and supply chain management.

Transportation charges paid by the Big Bazaar to the transporter are 17500/month up to 1500
kilo meter. If the distance is more than this then 4.50Rs per kilo meter.

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Concept of ware housing in Big Bazaar-

Ware house is nothing but Company’s inventory for meeting immediate customer demand.
Ware houses have a very vital in role in supply chain of retail. High degree of cost efficient
working is essential for retail-chain distribution.

Old Concept of warehouse

1. To store products: finished products raw material.

2. To maintain original quality of store material

3. A static Unit to hold products till sold (Cost Centre)

New concept of ware house invented by Big Bazaar-

1. Providing Logistic service in a cost effective manner

2. Making product available at right time, at right place, in right quantity

and quality at right cost

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Functions of Warehousing in Big Bazaar-

Economic Functions

– Consolidation

– Break-Bulk

– Stockpiling

– Value-Added Services

Functions of Warehousing- stockpiling

• Seasonal Storage of Products

• Woolen Garments

• Helps in smooth availability of products

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Value added services means add different values to a single service to maximize the profit
and reduce the transportation cost to minimum. In this type of ware housing we receive stock
from a vendor and transport it to different nearest stores.

In this type of ware housing required ware house consolidate the material from different
vendors and then transfer it to different stores. This format of ware housing is usually
followed in Big Bazaar.

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In this type of ware housing ware house receive material from a vendor but in bulk and then
transfer it to different stores.

Operational Functions:

1. Receiving goods

2. Keeping records of Inventory

3. Store goods- appropriate place & min. area

4. Preserve quality- physical attributes

5. Proper handling- loading, Unloading, stacking

6. Order receiving- processing & filing

7. Dispatching goods

8. Preparing and releasing documents of transactions; keep records

9. Marketing intelligence- between co & Customers

10. Other legal functions related to trade

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Purpose of any supply chain management team is to reduce the supply chain or to reduce the
distance of transportation because as the distance increases the cost per unit of the load
moved also increases. In this whole process two types of costs are there. First is the fixed
cost that is the cost which we have already paid to the vendor and second is the variable cost
that may vary from different reasons. But in the above curve this variable cost varies due to
increase in distance travelled by vehicle.

Distribution of stores and ware houses is designed in such a way that transportation charges
reduce to minimum.

Three type of distribution centre in Big Bazaar supply chain-

1. M.D.C. (mother distribution centre) e.g.Tarapure ware house

2. R.D.C. (regional distribution centre) e.g.Hassan garh ware house

3. C.D.C. (centre distribution centre) e.g. Central ware house (Mumbai)

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Central ware house (C.D.C. Mumbai)-

There are ten to twenty central ware house of Big Bazaar in India. C.D.C Mumbai Dewas
naka consists of 70000 square feet area on rent. This ware house start from July23
2007 .These central ware houses are made at the central location of some specific stores. And
these are multipurpose ware houses. For example C.D.C. Mumbai receives the stock from
the vendor as well as from the other ware houses (seasonal stock) and transfer this stock to
the next places where it is required in the supply chain. We have three sites for storing the
material. These sites are made to recognise the place of a particular item. Central ware house
Mumbai pays 3.50 Rs./ square feet rent of the ware house to the 3-PL Indo arya.

Site wise distribution of the material-

1. First site 8648 is consists of apparels(mens,womens and kids),general merchandising


(home lenin,utensils,toys,stationary,autoacessories,luggage,plastic,footwear,depots)
2. Second site 8649 consists of winter wears apparels
3. Site 6648 consists of home solution retail India Ltd.

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Site 8648-

This site in central ware house Mumbai consists of 300000 units, out of which
160000 units are of G.M. section and 140000 units are of apparels.

1. G.M. (160000 units)-

1. Plastic-60000
2. Auto accessories,depot,stationary-5000
3. Luggage-10000
4. Utensils-20000
5. Foot wear-20000
6. Home wear-25000
7. Sports 10000
8. Toys-10000
1. Apparels (140000 units)-
1. Kids-65000
2. Mens-45000
3. Ladies-30000

Site 8649-

This site consists of 550000 units in all out of which 50000 units are of rain wear and
umbrella.

1. Kids-250000
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2. Men’s- 160000
3. Ladies-75000
4. Home wear-15000

PRIL PRIL HSRIL

8649(winter wear season) 8648(G.M.&Apparels)


6648(ELECTRONICS)

31100 square feet 18000 square feet


20900square feet

In central ware house C.D.C. Mumbai we receive the material in three conditions

1. Against S.T.O.- Transfer from other ware house


2. In voice-from vendor against purchase order
3. R.S.T.O.-seasonal return from all over India

Process in central ware house start with the receiving of the material. Firstly we receive all
the documents from the transporter. Documents are different against all above three cases. In
case of invoice we weigh the boxes and count them also. We match the L.R. no. on box with
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the consignee copy. Then after filling all the information in SAP we create an inbound
register no. and PT no. We stamp on P.O.D. copy and write the I.R. no., actual wt., Date, no.
of boxes, signature of the security guards and return it to the transporter. In case if the boxes
are open during receiving of the material then we write down the condition of box open on
the transporter copy. We note down vehicle no. at the time of receiving also.

Discrepancy note-

Discrepancy note is made and mail to the category that look at it in case of damage and
shortage of the material.(Vendor management team and category have the right to take
action).Action is required under 48 hours.

In warding-

Next step is the pre in warding of the material in SAP as well as in ware house. In SAP we
do scanning of the material against inbound no. and send the material for the segregation and
documents for the post in warding by doing G.R.N. of the material.

Racking and segregation of the material-

Before designing the material on the racks we segregate the material firstly merchandise
category wise and then article wise. The idea behind this is only to make easy picking of the
material during outing of the material. We segregate same merchandise category and after
that we segregate same article of the same merchandise category. And then we put all the
material on the racks with the required information. We also make stock report.

Conversion-U.O.M.(unit of measurement)-

Pre pack-same colour, different article, different size


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Pre pack is the smallest unit, in this case we have a pre pack of Dj&C shirts have same
colour, different size, different article.

Combination-medium-1, large-2, XL-2, XXL-1

Bag-different colour, same article-

Bag is the mediocre unit between pre pack and cartoon. One bag may be of many pre packs.
One bag has different colour but same article.

Cartoon-

Bigger unit of packing. One cartoon has many bag, many pre pack with same article.

W.M.S. (ware house management sheet)-

Ware house management sheet is formulated to keep the record of all the items present in the
ware house and especially location of those items. When we receive a S.T.O. from a store
then firstly we check the availability of the stock in store by the help of W.M.S. sheet. And
then pickers pick the material from the location given by the W.M.S. sheet.W.M.S. Sheet is
to make the work process easy.

Out warding of the material- Out warding occur only against S.T.O. We receive S.T.O.
from different stores and then create delivery of that S.T.O. and create a pick list (Its a
document).Then we create H.U. no.(cartoon no.) and issue the material by goods issued and
give its print in form of S.T.N.

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Scrap- Scrap is the audit part. This is the material which is of no use at present and was of
use earlier. We send this material to the registered vendor of scrap and vendor in return pay
us by demand draft and we post this draft to head office.

Reverse logistics ware house- The concept of reverse logistics ware house is implemented
for damage stock. Four reverse logistics ware house are there in India for four different
zones. If damage is done at the store or in ware house then it is send to reverse logistics ware
house of that zone.

Cost monitoring or the expenditures of ware house-

1. Ware house rent


2. Contract labour cost
3. Future logistics manpower cost
4. Security cost
5. Utility cost
6. Ware house packaging cost
7. Others

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Some terms in supply chain of Big Bazaar-

Balanced Scorecard

Balanced scorecard is a strategic, measurement-based management system, originated by


Robert Kaplan and David Norton. It describes and explains what has to be measured in order
to assess the effectiveness of strategies. In retail, by measuring operational efficiency,
employee performance and customer satisfaction and financial performance, long term
strategies can be linked to short term actions.

Barcode

A Barcode is an encoded set of lines and spaces of different widths that can be scanned and
interpreted into numbers to identify a product. General Use: Scanning, identification

Bins

Bins are containers or fenced shelving for displaying merchandise.

Backdrop

A backdrop is a background for a display.

CPFR - Collaborative Planning, Forecasting and Replenishment

CPFR is the sharing of forecasts and related business information among business partners in
the supply chain to enable automatic product replenishment. CPFR is designed to improve

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the flow of goods from the suppliers, to the retailers' shelves. It also is designed to quickly
identify any discrepancies in the forecasts, inventory, and ordering data so that the problems
can be corrected before they negatively impact sales or profits.

CRM

Customer Relationship Management refers to the business strategies designed to optimize


profitability and customer satisfaction.

When used to describe software, CRM applications are those that focus on relationships,
rather than transactions.

COD

Cash-on-delivery is when the customer pays for merchandise when it is delivered, instead of
upfront.

Catalogue Sales

A catalogue is a collection of items for sale, usually with descriptive details, arranged in an
electronic listing or paper pamphlet or a book. Catalogue sales are used to facilitate product
orders, either by a retailer from a vendor, or by a customer from a retailer.

The Category

The category is the basic unit of analysis for making merchandising decisions.

In general, a category is an assortment of items that a customer sees as reasonable substitutes


for each other.

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Men’s apparel and women’s apparel are categories. Categories have key similar
characteristics.

Retailers and vendors might have different definitions of a category.

Category Management

Category management is the process of managing a retail business with the objective of
maximizing the sale and profits of a category.

Category management helps building clear accountability, as one person is made accountable
for success or failure of a category.

The second reason for using category management is that it is easier to manage and
maximize profits.

Cross-merchandising

This occurs when a retailer links the marketing of one product to the marketing of another. A
simple example is the use of food displays at grocery stores. If a store wishes to promote the
sales of cheeses, which carry an attractive profit margin, the store may locate items
consumed with cheese nearby, e.g., crackers and breads, and may even display them directly
together or offer samples.

Electronic Data Integration

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An inventory delivery system where retailers and manufacturers / suppliers work together as
partners. Also known as Quick Response.

Electronic Data Interchange / EDI

A system that enables retailers to integrate their purchasing activities with their stores and/or
with vendors.

Electronic scanner

Equipment capable of "reading" barcodes.

Exchange policy
Written rules to follow when merchandise is returned or exchanged for other merchandise.

Fabric samples
Small pieces of fabric. Also known as swatches.

Gift Certificates

Gift Certificates are paper certificate or card that can be redeemed for a specific value at a
particular store. Gift Certificates are purchased by consumers to be given as gifts in place of
a specific item.

Gross Margin

Gross margin = Net sales – Cost of goods sold

Gross margin % = Gross Margin/ net sales

How to calculate margin

C.P.+VAT=L.P.+Margin=M.R.P.

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CP*VAT%=L.P.

Or C.P.+4% of C.P.=L.P.

M.R.P.-L.P. =MARGIN

MARGIN/M.R.P.*100=MARGIN in %age

Hence;

M.R.P.-L.P./M.R.P.*100=MARGIN in %age

%Margin*M.R.P./100=M.R.P.-L.P.

LP=M.R.P.-(%Margin*M.R.P./100)

LP=M.R.P. (1-%Margin/100)
Electronic Article Surveillance (EAS)

A proven loss prevention technique that protects assets and merchandise by utilizing security
tags and labels and EAS detection equipment. EAS systems provide security for buildings,
entrances, exits and enclosed areas by raising an alarm when items protected with an active
tag or label pass through the detection equipment.

Impulse Goods

Impulse Goods are products generally purchased without prior planning. Impulse Goods can
also be used to describe products placed for impulse purchasing at the check-out areas of the
store.

Kiosk

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A kiosk is a small leased area, booth, or cart inside a store or mall.

Loss Prevention

Loss prevention is stopping or reducing loss from shoplifting, employee theft, paperwork
errors and poor safety procedures. Guarding and securing the assets of a company.

Mannequins
Stylized plastic, wood, fibreglass, plaster, metal, or glass representations of human form used
for displays.

Markdown

A reduction in selling price.

Market segmentation
The process of dividing the total market into smaller sections based on shared characteristics.

Marking
Marking merchandise with a price before placing it on display on the sales floor.

Mark-up
The difference between the selling price and the cost of an item.

Merchandising (As a process)

Merchandising is an entire set of economic activities, extending from an initial product idea
to a finished product on display in a store. Merchandising is the process of bringing products
successfully to market, especially in retail settings. The merchandising function requires
coordination of many areas of a business, including marketing, procurement, accounting,
production, and warehousing/distribution.

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Sales per square foot of selling space

Net sales divided by the square feet of selling space.


Same-Store Sales

Same-Store Sales are sales revenue generated only by those stores that have been open more
than a year and have historical data to compare this year's sales to the same time-frame last
year. By measuring the sales increase or decrease in the stores that have a history (open a
year or more) the industry can get a better feel for how it is really performing, because this
measure -- Same-Store Sales -- takes store closings and chain expansions out of the mix.

Salvage goods
Merchandise that has been damaged in transit or storage

Seasonal merchandise
Products that are in demand at a certain time of the year, such as Diwali or Back-to-School.

Stock Keeping Unit (SKU)

A SKU is the smallest unit available for keeping inventory control.

In apparel, a SKU usually means size, colour, and style.

e.g. Boys size 32, stone washed blue, comfort fit Levi’s is one SKU.

e.g. Surf Excel in I kg, 500 gms and 250 gms is three SKUs

Variety

Variety is the number of different merchandising categories within a store.

Stores with a large variety are said to have a good breadth.


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E.g. Levi’s Stores have a limited variety - Jeans and related apparel and accessories.

Assortment

Assortment is the number of SKUs within a category.

Stores with a large assortment are said to have a good depth. The terms assortment and depth
are used interchangeably.

e.g. Levi’s Stores carry a large assortment of Jeans and accessories.

Product Availability

Is defined as the percentage of demand for a particular SKU that is satisfied. Also referred to
as the level of support or service level.

Signage
Signs, labels, shelf tags, and other identification signs within the store to provide directions,
prices, or information to customers on merchandise or policies.

Stock turnover
A measure for determining how quickly merchandise is being sold.

Supply Chain Management

Supply Chain Management covers the planning and management of all activities involved in
sourcing, procurement, conversion, logistics and distribution. It also includes coordination
and collaboration with channel partners, which can be suppliers, intermediaries, third-party
service providers, and customers.

Trading up
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Selling where the salesperson persuades the customer to buy a more expensive item or a
larger quantity than originally intended.

UPC

The Universal Product Code is a standard for encoding a set of lines and spaces that can be
scanned and interpreted into numbers to identify a product. General Use: Scanning, item
level inventory and identification. UPC-A is the most common barcode used in retail product
marking in North America.

Warranty

A warranty is a written guarantee of a manufacturer's or retailer's responsibility. A warranty


helps consumers feel confident about the products they purchase.

Research Methodology

‘To analyze/compare the buying preference of customers towards three main players in
retail i.e. Big Bazaar, Reliance fresh and vishal mega mart’.

I have done survey by questionnaires on consumers/customers in spite of the vendor simply


because of the reason that more or less a supply chain depends on the customer need.
Category should be aware with the need and preference of the customers. This survey helps
me a lot to know about the different parameters proffered by the customers before entering a
retail outlet. So flow of the supply chain is depends upon the customer purchase that in terms
depends upon the parameters fulfilled by the retail outlet. Because as we know customer is
the king of any retail outlet.

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Research design

A research design is a frame work or blue print for conducting the business research project.
It details the procedures necessary for obtaining the information needed to structure and
solve business research problem. In this project we have conducted exploratory and
descriptive research to ‘To analyze/compare the buying preference of customers towards
three main players in retail i.e. Big Bazaar, Reliance fresh and vishal mega mart’.

Exploratory Research:

It is a type of research which has its primary objective the provision of insight into and
comprehension of the problem situation confronting the researcher. We have done secondary
research as the part of Exploratory Research.

Descriptive research

A type of conclusive research that has its major objective to describe something, usually
business characteristics or functions. Major methods employed in descriptive research are
survey and observation of that we have used survey using questionnaires.

Sample

A sub group of the elements of the population selected for participation in the study.
Sample characteristics called statistics are then used to make inferences about the

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population parameters. We have chosen sample of people out side the retail outlets in three
different locations of the Mumbai.

Sampling design process-

Define the target population- The collection of elements or objects that possesses the
information sought by the research and about which inferences are to be made. So our target
population are people ready to buy monthly needed items from the retail outlet according to
there preference of parameters.

Sampling technique- Convenient sampling

Convenient Sampling: A type of non-probability sampling technique that attempts to


obtain a sample of convenient elements. The selection of sampling unit is left primarily to
the interviewer.

Sample size

We have taken sample of 100 Respondents out side the retail outlets ready to buy form
there..

ANALYSIS

Results-

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1. Age of the customers?

By survey on customers by the help of questionnaires we have found that 48% of the
respondents fall between 26-45 years age while 31% of the consumers fall between the age
of 46-60 and remaining 21% respondents fall under the age of 15-25.

2. Annual income of the respondents?

22% of the respondents have their annual income of less than 1.8 lakh , 45% of the
respondents have their annual income of 1.8 lakh to 4 lakh. These are the young and middle
aged people having effect of the globalization and are working in the cities. They always
like to spend their income in retail outlets in spite of kirana shops or unorganized market.
and 33% of the respondents have their annual income of more than 4 lakh.These people
have less percentage on the graph may be because of the reason that these people purchase
from this format of the retail for only food items and in case of other items they are more
brand conscious.
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3. How much part of average monthly income spends in retail outlet?

In the above chart by the horizontal axis i have shown four different ranges of average
monthly income people spend in a retail outlet. By the help of chart i came to know that 30%
people spent less than 3000,40% people spent 3000,20% people spent 5000 and 10% people
spent more than 5000.

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4. Rank the Big Bazaar on the basis of following parameters?

1. Low price>loyalty >brand>availability>customer service>Quality


2. low price> Availability>customer service>quality>loyalty>brand
3. Low price>availability>quality>brand >loyalty>customer service

I offer three different sequences of parameters to the respondents for the selection of Big
Bazaar sequence. Means what they have seen in big bazaar? What they like in big bazaar?
And what they want to see?

Here I found that 58% of respondents prefer second sequence of the above given sequences
while 35% prefer third sequence and 7% of respondents prefer first sequence. By the help of
chart i came to know that people have seen the strength of big bazaar in following order

Low price (offer)>availability of the product under a single roof>good customer


service>quality>loyalty>brand

5. Widely accepted sequence of the following parameters for Big Bazaar by


distributing the marks by respondents?

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By giving marks to different parameters according to the preference of respondents i came to
know that most of the respondents prefer low price as the first criteria to enter in Big Bazaar
with 35 marks, product availability as the second factor with 25 marks, customer service as
third criteria, quality as fourth criteria and lastly brand and loyalty.

6. Widely accepted sequence of the following parameters for the Vishal Mega Mart by
distributing the marks by respondents?

If we see Vishal Mega Mart provides low price to the customers becomes the first criteria to
enter in the store with 30 marks, availability of the product becomes the second criteria with
25 marks, and quality and brand with the same marks become the next criteria then loyalty
and customer service. One big difference that i have seen between these two retail players is
that vishal mega mart doesn’t focus on the customer service as much as Big Bazaar. That
may be the negative point for the Vishal mega mart.

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7. Widely accepted sequence of the following parameters of Reliance fresh by
distributing the marks by respondents?

Although Reliance fresh is total different segment of the market in comparison to Big Bazaar
and Vishal Mega Mart. Here first criteria for most of the customers to enter in the store are
same as that of above two retailers. But here customers concerned with the loyalty and brand
name of the company that we doesn’t have seen in above two co. They are not bothered
about the customer service and quality of the store. At some extent they may be concerned
with the availability of the product. So distribution of the marks is as given above in the
chart.

8. Rank the following parameters in the decreasing order on the basis of your
preference for a retail outlet.

1. Low price>loyalty >brand>availability>customer service>Quality


2. Low price> Availability>customer service>quality>loyalty>brand
3. Low price>availability>quality>brand >loyalty>customer service

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Here by the help of this response from the respondent I came to know that what a customer
expect from a retailer? When I distribute marks of the respondents for the specific
parameters in pie chart then I came to know that customer prefer the same sequence of
parameters as Big Bazaar gave us. Although level of preference for the different parameters
may be different but the sequence of parameters is same.

In the pie chart above customer prefer low price as the first criteria to enter in the retail store,
availability as the second criteria, respondents also give me a hint that consumers also expect
good customer service. Then they focus on quality and other parameters.

Findings

On the basis of analysis of questionnaires it was found that a large part of customers in the
retail outlets is youth and middle aged people working in cities in companies. These people
are affected by the storm of globalisation. These people becoming westernize day by day.
Big part of the customers is getting income between 1.8-4 lakh.These people are more aware
about the fashion technology and spend nearly 3000 rupees in these retail outlets at monthly
basis. Due to busy schedule of the big cities these people prefer to buy monthly need
products under a single roof with good offers.

So price and availability becomes the most preferred criteria for the customers to enter in to a
retail outlet. In today’s life everybody want to live with dignity and expect some respect. So
customer respect in terms of customer service becomes the next criteria to be preferred by
the customers.

Customer also need valve for money in terms of quality of the product. If somebody is
purchasing from retail outlet then he/she expect that product should be of good quality.
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Due to brand name of the company customer also expect loyalty from the store and brand
product also but not most.

So if we analyze the response from the pie charts then we came to know that Big Bazaar is
fulfilling the customer’s needs in a controlled and organised way. Big Bazaar is providing
the same sequence of parameters as per the expectation of customers. So big bazaar is
leading in the hypermarket format of the retail outlets in India.

SWOT Analysis of Big Bazaar

 Strengths
1. High Brand Equity in evolving retail markets.
2. State of art infrastructure of the Big Bazaar outlets.
3. Point of Purchase promotions to increase the purchase.
4. Variety of stuff under single roof increasing customer time and available choices.

 Weakness

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1. Unable to meet store opening target till now.
2. Falling revenue per square feet.
3. Perception amongst consumers.

 Opportunity
1. Organized retail is just 4.15 % of total pie of Indian retail market.
2. Targeting Area more prone to development.
3. In Store Experience Improvements.
4. Evolving customer preferences in recent years.

 Threat
1. Competitors, Global big players planning to foray into the market.
2. Un-organized retail market of India also country’s economic condition.
3. Government policies are not well-defined in emerging markets like India.

Objective with Questionnaire

To analyze/compare the buying preference of customers towards three main players in


retail i.e. Big Bazaar, Reliance fresh and vishal mega mart.

Dear Respondent,

Kindly helps us by filling the following questionnaire meant for survey purposes. We assure
that the information provided by you will be strictly kept confidential and will not we
shared any other under circumstance

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1 Name:

2 Age:

3 Genders: M/F

4 Occupation:

5 Annual income

(a) <1.8lakh

(b) 1.8 to 4lakh

(c) more than 4lakh.

6 Do you prefer to buy daily need products from retail outlets?

(a)Yes

(b) Sometimes

(c) If offer is there

7 How much part of your average monthly income do you spend in retail outlet?

(a) 3000

(b) 5000

(c) More than 5000

(d) Less than 3000


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8 Do you buy from a selected store every time or do you keep on shifting stores?

(a) Shop from only one store


(b) Shop from few selected store
(c) Some times shift
(d) Keep on shifting

9 While you go for the purchasing, you should compare the weekly or Big day offer of
these retail outlet with each other.

a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

10 Do you prefer to buy food items or others from the same store?

(a) Yes
(b) No
(c) Mostly
(d) According to the offer/scheme

11 Rank the Big Bazaar on the basis of following parameters.

1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer service 6.Loyalty

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1. Low price>loyalty >brand>availability>customer service>Quality
2. low price> Availability>customer service>quality>loyalty>brand
3. Low price>availability>quality>brand >loyalty>customer service

12 Give the distribution of marks for the following parameters of Big Bazaar.

1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100


2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

4. Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
Service.
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

13 Rank the Vishal Mega Mart on the basis of following parameters.

1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer service 6.Loyalty


1. Low price>loyalty >brand>availability>customer service>Quality
2. Low price> Availability>customer service>quality>loyalty>brand
3. Low price>availability>quality>brand >loyalty>customer service

14 Give the distribution of marks for the following parameters of Vishal Mega Mart.

1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100


2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
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4.Availability5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100
Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

15 Rank the Reliance on the basis of following parameters.

1. Price (offers) 2. Quality 3.Brand 4. Availability 5.Customer service 6.Loyalty


1. Low price>loyalty >brand>availability>customer service>Quality
2. Low price> Availability>customer service>quality>loyalty>brand
3. Low price>availability>quality>brand >loyalty>customer service

16 Give the distribution of marks for the following parameters of Reliance fresh.

1. Low price 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100


2. Loyalty 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

3. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

4. Availability 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

5. Customer 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

Service
6. Brand 5,10,15,20,25,30,35,40,45,50,55,60,65,70,75,80,85,90,95,100

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17 Rank the following parameters in the decreasing order on the basis of your
preference for a retail outlet.

1. Low price>loyalty >brand>availability>customer service>Quality


2. Low price> Availability>customer service>quality>loyalty>brand
3. Low price>availability>quality>brand >loyalty>customer service

Bibliography

www.PRIL.com

www.wikipedia.com

www.google.co.in

www.bigbazaar.com

http://www.pantaloon.com/bigbazaar.htm

http://www.pantaloon.com/foodbazaar.htm

http://en.wikipedia.org/wiki/Bigbazaar

www.scribd.com

www.slideshare.com

www.authorstream.com

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