Food Supply Chain of Big bazaar.docx

1、Food Supply Chain of Big bazaarFood Supply Chain Management of Big BazaarAbstractBig Bazaar has emerged as one of the leading retail chain stores in India for food, general merchandise and home products. The success mantra for Big Bazaar has been to provide quality products at the cheapest prices. A

2、nd it depends on its efficient supply chain to squeeze out profits, which it further passes onto the customers. Although Big Bazaar deals with four different categories of supply chains food, fashion, general merchandise and home, the most critical is the food supply chain. Big Bazaar brought revolu

3、tionary methods of procurement and distribution in the food supply chain, by directly procuring farm-fresh products from farmers, and distributing them directly to the retail stores. It also maintains a world-class cold-chain infrastructure and highly efficient FMCG supply chain. This paper focuses

4、on the above matters, and gives insight about the food supply chain of Big Bazaar. We have also tried to give a brief insight into the aspects of food supply chain that may arise in the future.Keywords: food supply chain, cold-chain, farm fresh, agro products, logistics, and distribution.Introductio

5、nBig Bazaar is a chain of hypermarkets in India, with more than 100 stores in operation. It is a subsidiary of Future Group Venture Ltds, and follows the business model of United States-based Wal-Mart.Big Bazaar is led by Pantaloon Retail, the groups flagship company, and the company operates120 Big

6、 Bazaar stores, 170 Food Bazaarstores, among other formats, in over70 cities across the country, covering an operational retail space of over6 million square feet. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifest

7、yle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.In 2008, Bi

8、g Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore.The groups speciality retail formats include supermarket chain Food Bazaar, sportswear retailer - Planet Sports, electro

9、nics retailer - eZone, home improvement chain - Home Town and rural retail chain, Aadhaar, among others. It also operates popular shopping portal - .This large format store comprise of almost everything required by people from different income groups. It varies from clothing and accessories for all

10、genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products,cosmetics, crockery,home textiles, luggage gift items, other novelties, and also food products and grocery. The added advantage for the customers shopping in Big Bazar is that there are a

11、ll time discounts and promotional offers going on in the Big Bazar on its salable products. Shopping in the Big Bazar is a great experience as one can find almost everything under the same roof. It has different features which caters all the needs of the shoppers. Some of the significant features of

12、 Big Bazar are: The Food Bazar or the grocery store with the department selling fruits and vegetables There is a zone specially meant for the amusement of the kids Furniture Bazar or a large section dealing with furnitures Electronics Bazar or the section concerned with electronic goods and cellular

13、 phones FutureB or the online shopping portal which makes shopping easier as one can shop many products of Big Bazar at the same price from home Well regulated customer care telecalling servicesCompany ProfileFuture Group, which is led by its founder and Group CEO, Mr. Kishore Biyani, was establishe

14、d in 1994 with a vision to provide diverse services in Indian and Global markets and is now one of Indias leading business houses with multiple businesses spanning across the consumption space with a net sales from operations of about 5934.37 crores. While retail forms the core business activity of

15、Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.Led by its flagship enterprise, Pantaloon Retail, the group operates over 16 million square feet of retail sp

16、ace in 73 cities and towns and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian

17、 customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is the hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience o

18、f modern retail. Supply-Chain management of Big BazaarThe supply chain of Big Bazaar is managed by Future Supply Chains, which has developed expertise in Supply Chain Management of consumer product categories such as Fashion, Food, Home and General Merchandise. The company operates from 60 strategic

19、ally located hubs, servicing more than 2600 retail outlets spread across the length and breadth of the country. Its network of facilities and specialized expertise enable it to manage more than 3 million SKUs. This requires 30 distinct supply chains to be managed simultaneously, each with their own

20、specific requirements that need customized solutions.Big Bazaars Supply Chains transportation capability enables it to implement Factory-Gate logistics involving pick-up of goods from vendors across the country, national distribution of goods, and city logistics that includes store deliveries and ho

21、me deliveries. Big Bazaars Supply Chains is the first organized intra-city transportation services company in India - carrying out not only B2B deliveries but also B2C deliveries in the form of thousands of home deliveries every day across the country, especially for Furniture and Consumer Durables.

22、Big Bazaar is also working on the vendor network as well as the logistics network. The company has identified up to 40 anchor vendors, each with turnovers of US$45 million, to achieve economies of scale. The group is also keen to ensure that its smaller vendors are able to reach turnovers of around

23、US$1 million and a growth rate of 40% annually, to be able to pass on the benefits of scales. The company is also working towards bringing its 1,200 vendors online, like Wal-Mart.In India, Big Bazaar derives significant economies of scale in managing their supply chain. With more than 170000 product

24、s, the company maintains a strong supplier relationship in a partnership mode, avoiding the exploitative supplier buyer transactional philosophy. The IT enabled back-end operations and supply chain management increases the reliability and efficiency of the business. As part of the operation, Big Baz

25、aar is also undertaking to reduce its warehousing costs through a consolidation process. In a country like India, where most retail stores are located in the heart of the citywhere rents are high and storage space is scarcesupply chain management has even more serious business implications. Future L

26、ogistics now handles two-and-a-half million SKUs (or stock keeping units) a day across the Future Groups various retail formats around the country. By 2010, this number is expected to increase to more than 30 million SKUs a day. Even with 98% accuracy, some 600,000 pieces will not be delivered corre

27、ctly, resulting in an estimated sales loss of more than Rs 4 crore a day. Big Bazaars four main consumer sectors Fashion, Food, Home and General Merchandise have varied product lines, each with their own unique needs that require 30 distinct supply chain solutions. We have concentrated our studies o

28、n the Food supply chain management of Big Bazaar.Food Supply ChainIn the present competitive environment customers have become more demanding and asking for quality food which guarantees the safety. On time delivery is becoming a norm to reduce the inventory holding costs. The food industry is facin

29、g challenges due to increasing operational complexity, frequently changing consumer needs, government regulations and short product life cycles. It requires a very smart, efficient and agile supply chain to manage the ever changing needs of the end customers Why managing Food Supply Chain is a chall

30、enge?The food supply chain is complex and difficult to manage due to its perishable nature and short shelf life of the products as compared to other supply chains like electronics, home needs, consumer durables etc. It also requires a robust infrastructure of warehouses and transportation network co

31、nnecting suppliers, manufacturers, distributors and retailers.The complexity of food supply chain increases further because of the below mentioned parameters 1. Food safety requirements 2. Regulatory requirements 3. Short shelf life of products leading to expiry and wastage 4. Product recalls 5. Pro

32、duct traceability requirements 6. Effective handling of customer complaints 7. High order frequency and low volumesFood Supply Chain categorizationIt is basically categorized into two broad categories Perishable and non PerishablePerishable Supply Chain In perishable supply chain the shelf life for the products is very low. It requires managing the end to end supply chain with utmost care. The perishable supply chain typically requires a cold chain to manage it properl