Description
Supply chain management is a buzzword probably used for the first time by the consultants in the 1980's and later analyzed by the business community. In simple terms supply chain management link all the supply interacting organization in an integrated two way communication system to manage high quality inventory in the most effective and efficient manner.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 20
Supply Chain Management in Retail Sector: with special reference to Big Bazar
Tauffiqu Ahamad, Institute Research Fellow,Department of Humanities and Social Sciences,
Motilal Nehru National Institute of Technology Allahabad. [email protected]
Abhishek, Institute Research Fellow, Department of Humanities and Social Sciences, Motilal
Nehru National Institute of Technology Allahabad, [email protected]
Dr.Rajesh Kumar Shastri, Assistant Professor, Department of Humanities and Social Sciences,
Motilal Nehru National Institute of Technology Allahabad, [email protected]
Abstract
Supply chain management is a buzzword probably used for the first time by the consultants in the
1980’s and later analyzed by the business community. In simple terms supply chain management
link all the supply interacting organization in an integrated two way communication system to
manage high quality inventory in the most effective and efficient manner. As such supply chain
management is a network of facilities and distribution options that perform the function of
procurement of material transformation of these materials into intermediate and finished good and
finally the distribution of these goods to the end user. The supply chain exists both in the service
and manufacturing sector, although the complexity of chain may vary greatly from industry to
industry and from firm to firm. Realistic supply chains have multiple end products with shared
component, facilities and flows. However the flow of material is not always along a deemed
network, various mode of transportation may be considered. Biz Bazar supports successful
execution of supply chain management through the exchange of technology and strategic alliance
by incorporating strategic collaboration with professional consulting companies and core
technology vendors
Keywords: Supply Chain management, Business Community, Two way communication, high
Quality inventory, Service and manufacturing sector, Big Bazar.
SUPPLY CHAIN MANAGEMENT
1.0 Introduction
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 21
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.
According to Christopher, SCM is defined as,” The management of upstream and downstream
relationships with suppliers and customers to deliver superior customer value at less cost to the
supply chain as a whole.”
According to Professor Douglas M. Lambert, “supply chain management as the integration of
business process from the end user through original suppliers who provide products, services, and
information that add value for the customer.”
Realistic supply chains have multiple end products with shared components, facilities and
capacities. The flow of materials is not always along an arbores cent network, various modes of
transportation may be considered, and the bill of materials for the end items may be both deep and
large.
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations
along the supply chain operated independently. These organizations have their own objectives and
these are often conflicting.
Many manufacturing operations are designed to maximize throughput and lower costs with little
consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts
are often negotiated with very little information beyond historical buying patterns. The result of
these factors is that there is not a single, integrated plan for the organization---there were as many
plans as businesses. Clearly, there is a need for a mechanism through which these different
functions can be integrated together. Supply chain management is a strategy through which such
integration can be achieved.
Supply chain management is typically viewed to lie between fully vertically integrated firms,
where a single firm and those own the entire material flow where each channel member operates
independently. Therefore coordination between the various players in the chain is key effective
management.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 22
SUPPLY CHAIN PROCESS
Typical model of supply chain management
Raw Material Supplier Customer/
Assembler
Final
Customers
Other
Customers
Other
Suppliers
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 23
2.0 OBJECTIVE OF THE STUDY
In this research paper i would be focusing my attention on some of the important objective that is
the part of my study. The following are the objectives:
To study supply chain management of Big Bazar
To study application of Information Technology in Supply Chain Management of Big Bazar
in internet age.
To find out the coordination among different departments through supply chain management
for managing demand uncertainty.
To study various phases of Supply chain management in Big Bazar.
To analyze customer focus on supply chain management in Big Bazar
3.0 SUPPLY CHAIN MANAGEMENT OF BIG BAZAR
As such the strategy used by Big Bazar is Shorter product life cycle, improved quality, faster
delivery lower price, which have define its success. It is based on the formula:
Competitiveness = competitive assets x competitive process
Where competitive assets include technology, infrastructure, government institution etc and
competitive process include quality customization etc. Big Bazar tries to build infrastructure in
order to establish compatibility with the production and marketing structure and improve process.
Logistic within the supply chain is the art and science of obtaining, producing, distributing etc in
the proper place and in proper quantity.
4.0 MAJOR TRENDS IN SUPPLY CHAIN MANAGEMENT
4.1 CO- MAKERSHIP
It is defined as the development of a long term relationship with limited number of suppliers on
the basis of mutual confidence. The main benefits of co maker ship are shorter delivery lead
times, reliable delivery promises, faster implementation of design changes etc.
4.2 USE OF THIRD PARTY LOGISTICS
A decision to use third party logistic should be based on the organization needs, service provider
capabilities etc. Outsourcing operations like storage, transportation, improve service levels,
enhance flexibility and reduce cost.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 24
4.3 PRINCIPLE OF PROCUREMENT
Activities that are done up to the last moment like packaging, labeling, etc is known as principle
of procurement. The main aim of this principle is to minimize the risk of carrying finished
product inventory at various points in the supply chain by delaying product differentiations to the
latest possible moment before customer purchase
5.0 APPLICATION IN BIG BAZAR
Supply chain management has in recent years has played an important role in all the industries
concerned. It has not only paved way for the induction of information technology but has also
helped the manufactures in easy procurement of material and transferring the same to the ultimate
consumer.
5.1 RETAILERS
Retailers are the second last chain in the distribution of the product to the ultimate consumer.
Since they are at constant touch with the customer they are in a better position to understand their
needs and wants. As such they send request to the distributors and to the manufactures for goods
which are in demand. The manufactures through a well defined supply chain are able to send
goods to the retailers. In the absence of this chain the manufactures can lose the customer.
5.2 SUPPLIERS
In today’s scenario companies are not required to stock commodities in bulk owing to fluctuation
in the market related to product preference. As such manufactures do not store raw material but
place orders as and when the need arise. Here the role of supply chain comes into picture as it
helps the supplier in providing material to the manufacture at an appropriate time.
5.3 MARKET SEGMENTATION
Supply chain helps in the segmentation of customers based on the service needs of distinct groups
and adaptation to serve these segments profitability. This kind of segmentation can result in better
prediction of the demand from the individual customers. Further segmentation also leads to know
the demand of the products among the customer and also to know the future customer preference.
6.0 APPLICATION OF INFORMATION TECHNOLOGY IN SUPPLY CHAIN
MANAGEMENT OF BIG BAZAR IN INTERNET AGE
ELECTRONIC COMMERCE (E – COMMERCE)
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 25
The internet era has revolutionized commerce, making e- commerce a reality. The factors that
have contributed to the success of e – commerce, are lower purchasing cost, reduction of
inventories, effective customer service, marketing and sales etc. know time has come for the
paper based business to give away to electronic business when supplier and customer will transact
electronically. This would help in reducing cost, price, and increasing savings.
As such Big Bazar has tried to use three important dimension of e – commerce in his day to
day activities. These are as follows:
Reach is about customer information. It simply means as to how many customer a business
can access or how many products it can offer;
Richness is the depth and detail of the information that the business gives the customer or
collects about the customer;
Affiliation is about whose interest in business it represents. That is e – retailers with
navigational function are shifting their affiliation towards customer;
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 26
ECOMMERSE PROCESS
7.0 SUPPLY CHAIN MANAGEMENT WITH OTHER DEPARTMENTS
A supply chain management is the hub of a large part of a company’s business activity. By its
very nature, it has tried to maintain cordial relationship with all other departments in the firm, as
well with the supplier’s. The reason been as it has to operate in accordance and in line with all
other departments. I have tried to learn the role of supply chain with some of the departments in
retail sector. To which a brief description I am giving below:
7.1 SUPPLY CHAIN AND MANUFACTURING
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 27
Supply chain plays an important role in the manufacturing, because it aims at procurement of
material at the right time and through the right channels. Maintaining coordination between the
two pays off in many ways. It assists in the efforts by obtaining faster responses from the supplier,
working with suppliers to improve their capabilities etc, which is generally not seen in the
common scenario.
7.2 SUPPLY CHAIN AND MARKETING
Supply chain should be marketing best friend as it directly or indirectly affects the sales process
of retailing. Further in case the product is not demanded or the sale is less than in that case the
supply management department can be intimated and they can further reduce the procurement of
the material from the supplier.
Beside this supply chain also provides immediate information regarding increase in the material
price. This helps the marketing department to evaluate the effects of rises in price estimates given
for the future sales quotations, on current selling price and on plans for the future product lines.
7.3 SUPPLY CHAIN MANAGEMENT AND FINANCE
The finance department of BIG BAZAR is charged with two principle responsibility – obtaining
funds and overseeing their use. Supply chain of BIG BAZAR is responsible for as much as eighty
percentages of firm’s financial resources. As such the chief financial officer has a vested interest
in cost efficient supply chain management. This department has some very important role to play
in supply chain as it determines the amount of resources that the firm needs to procure, when to
procure, what to procure etc
7.4 SUPPLY CHAIN MANAGEMENT AND QUALITY
In BIG BAZAR major emphasis is been given to quality both in terms of raw material
procurement and finished goods. As such quality professionals are involved not only in
maintaining quality but also undertaking the development of new products, sourcing and
minimizing quality problem throughout the supply chain.
8.0 FOUR PHASES OF SUPPLY CHAIN MANAGEMENT IN BIG BAZAR
The four phases of supply management require many perspective and inputs best obtained
through a cross – functional approach. The four phases of supply management are as follows:
8.1 GENERATION OF REQUIREMENT - The generation of requirement is a critical activity
that results in the identification of material to be purchased, along with the development of
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
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specification and statement of work describing the requirements. This is an important phase since
most of the designing is done relating to purchasing material, service and equipment. It also takes
into account the commercial issues like cost, availability, substitute and alike.
8.2 SOURCING- The main aim is relating to the identification and selection of the supplier
whose cost, quality, technology, dependability and service best suits the needs of the firm. Thus it
not only aims at identification but also in maintaining cordial relationship with them.
8.3 POST- AWARD ACTIVITIES- This activity ensures that the firm receives what was
ordered on time and at the price and quality specified. The activities that are been included are
supplier development, technical assistance, troubleshooting, and the management of contract
and the resultant relationship.
8.4 SUPPLY MANAGEMENT SYSTEMS- It is very important for a firm to have a
management system. A cross functional approach to supply management allows each functional
area affected by the procurement of material, equipment, and service to be involved at a point
where it may contribute to the lowest total cost. For instance we take the case of ‘operation has it
in the productivity implication of different material’.
As such these phases of supply chain gives us an insight about the manner in which the
activities are been conducted and how the process as a total works. Along with that it also enables
us to understand the uniqueness of supply chain and its effectiveness and long lasting use in the
retail sector
9.0 CUSTOMER FOCUS IN SUPPLY CHAIN MANAGEMENT
Therefore to attain these competitive advantages Big Bazar is making attempt to promote value to
its customer by performing activities more efficiently than that of its competitors. It is trying hard
to serve its customer base and has become a vital means of differentiation when product
differentiators are dwindling.
As such when we focus our study towards customer we basically try to identify:
The significance of customer in the supply chain;
The importance of customer-driven strategies;
The various strategies of customer satisfaction;
The imperatives for supply chain management;
The rationale of supply chain management towards customer.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
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9.1 FOCUS ON CUSTOMER SERVICE
Effective customer service has become a competitive requirement and a way to attract and retain
customer. A focus logistics and customer service strategy is still a dream of various companies, to
which BIG BAZAR is responding positively.
Despite all these efforts it is still trying to accomplish a complete customer service by taking into
account the following:
To provide a quantitative understanding of the customer requirement for each element of
customer service, like delivery, reliability, availability etc;
To measure the relative importance of each element of customer service;
To assess the performance of the company and of its major competitors for each element of
customer service;
To provide an understanding of the relative significance of customer service issues related like
price, product and quality.
9.2 CUSTOMER – CENTRIC SUPPLY CHAIN
In the context of present scenario ‘customer satisfaction’ is something that keeps on revolving in
the minds of the competitors with reference to as how they could capture the market and have
their dominance in terms of their product in the market. As such the focus has now shifted from
product centered to customer centered because customer is considered as the king and unless they
do not consume the products the company cannot be successful
When we talk in terms of BIG BAZAR we find that BIG BAZAR because of its sound policy and
practical approach is able to provide the best service in the industry besides keeping lower cost
than that of its competitors. This has being possible because it has prepared a clear written
statement of his mission of the supply chain which is in consistent with key corporate strategic
thrust.
10.0 RESEARCH METHODOLOGY
Type of research carried out was EXPLORATORY in nature; the objective of such research is to
determine the approximate area where the drawback of the supply chain management lies and also
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 30
to identify the course of action to solve it. For this purpose the information proved useful for
giving right suggestion to the organization
11.0 DATA COLLECTION METHOD
1 11 1. .1 1 S Se ec co on nd da ar ry y s so ou ur rc ce es s o of f D Da at ta a: :
Secondary data refer to the data that has been already collected .the secondary data, which has
been used to carry out this study, are as follow: Books, J ournals, Magazines, News papers,
Industry Reports, Companies, internet site, Some other relevant study material and websites.
12.0 CONCLUSION
Managing faster supply chain has become imperative to gain and sustain competitive advantage.
The challenge of the modern retail Company is to keep a holistic approach towards the
management for remaining competitive on an international basis. The focus is on the increasing
importance of the supply chain function to corporate competitiveness
As such a study of BIG BAZAR employees in supply department was conducted in order to
understand the effective use of supply chain management and its application in the light of
information technology. Research was conducted accordingly and a favorable response was seen
among the employees towards the adoption of supply chain management which can be seen from
the graphical representation.
The conclusion drawn is that most of the employees feel that use of information technology in
supply chain would definitely going to benefit the organization in the long run. Thus the
hypothesis set by me is accepted since BIG BAZAR does believe that information technology has
important role to play in the supply chain management.
Therefore it is the responsibility of the company to undertake some serious action plan to make
this introduced concept a success.
Further they should form a strong customer and supplier database and underline some strategies
in order to promote the supply chain and make employees aware about it.
In fact a growing number of organizations are realizing the need for strategic sourcing as supply
management.
REFRENCES
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 31
Halder. Piali, and Pati Simayan(2011), “ A need for paradigm shift to improve supply chain
management of fruits and vegetables in India” , Asian J ournal of Agriculture and Rural
Development, 1(1),pp.1-20
K. Shilpa ( 2008), “ Supply Chain Management in Vegetable Marketing : A Comparative
Analysis”,
Mitul Deliya,Chanduji Thakor, Bhavesh Parmar , “A study on differentiator in marketing of
fresh fruits vegetables from supply chain management perspective” Vol. no. 1, ISSUE no. 3,
ISSN 2277-1166
M.Venkatraman Reddy N.V.S. Raju,( 2013) “ Issues and Challenges of Supply Chain
Management in India” , Vol.-2, Iss-1, 2013, IJ MPE, ISSN no. 2315-4489
Pankaj Chandra and Devanath Tripathi ,(2003) “ Business srtatigies for manageing complex
supply chains in large emerging economies: the story of AMUL.
Essential of supply chain management Dr.Mohanty R P and Dr. Deshmukh SG Page.no
7,19,47and109,
World class supply chain management By Starling Dobler Burt. Page.no-12,28and86,
J ournal on Industrial Technology
J ournal on supply chain management Published in ICFAI University
doc_680412363.pdf
Supply chain management is a buzzword probably used for the first time by the consultants in the 1980's and later analyzed by the business community. In simple terms supply chain management link all the supply interacting organization in an integrated two way communication system to manage high quality inventory in the most effective and efficient manner.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 20
Supply Chain Management in Retail Sector: with special reference to Big Bazar
Tauffiqu Ahamad, Institute Research Fellow,Department of Humanities and Social Sciences,
Motilal Nehru National Institute of Technology Allahabad. [email protected]
Abhishek, Institute Research Fellow, Department of Humanities and Social Sciences, Motilal
Nehru National Institute of Technology Allahabad, [email protected]
Dr.Rajesh Kumar Shastri, Assistant Professor, Department of Humanities and Social Sciences,
Motilal Nehru National Institute of Technology Allahabad, [email protected]
Abstract
Supply chain management is a buzzword probably used for the first time by the consultants in the
1980’s and later analyzed by the business community. In simple terms supply chain management
link all the supply interacting organization in an integrated two way communication system to
manage high quality inventory in the most effective and efficient manner. As such supply chain
management is a network of facilities and distribution options that perform the function of
procurement of material transformation of these materials into intermediate and finished good and
finally the distribution of these goods to the end user. The supply chain exists both in the service
and manufacturing sector, although the complexity of chain may vary greatly from industry to
industry and from firm to firm. Realistic supply chains have multiple end products with shared
component, facilities and flows. However the flow of material is not always along a deemed
network, various mode of transportation may be considered. Biz Bazar supports successful
execution of supply chain management through the exchange of technology and strategic alliance
by incorporating strategic collaboration with professional consulting companies and core
technology vendors
Keywords: Supply Chain management, Business Community, Two way communication, high
Quality inventory, Service and manufacturing sector, Big Bazar.
SUPPLY CHAIN MANAGEMENT
1.0 Introduction
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 21
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.
According to Christopher, SCM is defined as,” The management of upstream and downstream
relationships with suppliers and customers to deliver superior customer value at less cost to the
supply chain as a whole.”
According to Professor Douglas M. Lambert, “supply chain management as the integration of
business process from the end user through original suppliers who provide products, services, and
information that add value for the customer.”
Realistic supply chains have multiple end products with shared components, facilities and
capacities. The flow of materials is not always along an arbores cent network, various modes of
transportation may be considered, and the bill of materials for the end items may be both deep and
large.
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations
along the supply chain operated independently. These organizations have their own objectives and
these are often conflicting.
Many manufacturing operations are designed to maximize throughput and lower costs with little
consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts
are often negotiated with very little information beyond historical buying patterns. The result of
these factors is that there is not a single, integrated plan for the organization---there were as many
plans as businesses. Clearly, there is a need for a mechanism through which these different
functions can be integrated together. Supply chain management is a strategy through which such
integration can be achieved.
Supply chain management is typically viewed to lie between fully vertically integrated firms,
where a single firm and those own the entire material flow where each channel member operates
independently. Therefore coordination between the various players in the chain is key effective
management.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 22
SUPPLY CHAIN PROCESS
Typical model of supply chain management
Raw Material Supplier Customer/
Assembler
Final
Customers
Other
Customers
Other
Suppliers
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 23
2.0 OBJECTIVE OF THE STUDY
In this research paper i would be focusing my attention on some of the important objective that is
the part of my study. The following are the objectives:
To study supply chain management of Big Bazar
To study application of Information Technology in Supply Chain Management of Big Bazar
in internet age.
To find out the coordination among different departments through supply chain management
for managing demand uncertainty.
To study various phases of Supply chain management in Big Bazar.
To analyze customer focus on supply chain management in Big Bazar
3.0 SUPPLY CHAIN MANAGEMENT OF BIG BAZAR
As such the strategy used by Big Bazar is Shorter product life cycle, improved quality, faster
delivery lower price, which have define its success. It is based on the formula:
Competitiveness = competitive assets x competitive process
Where competitive assets include technology, infrastructure, government institution etc and
competitive process include quality customization etc. Big Bazar tries to build infrastructure in
order to establish compatibility with the production and marketing structure and improve process.
Logistic within the supply chain is the art and science of obtaining, producing, distributing etc in
the proper place and in proper quantity.
4.0 MAJOR TRENDS IN SUPPLY CHAIN MANAGEMENT
4.1 CO- MAKERSHIP
It is defined as the development of a long term relationship with limited number of suppliers on
the basis of mutual confidence. The main benefits of co maker ship are shorter delivery lead
times, reliable delivery promises, faster implementation of design changes etc.
4.2 USE OF THIRD PARTY LOGISTICS
A decision to use third party logistic should be based on the organization needs, service provider
capabilities etc. Outsourcing operations like storage, transportation, improve service levels,
enhance flexibility and reduce cost.
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 24
4.3 PRINCIPLE OF PROCUREMENT
Activities that are done up to the last moment like packaging, labeling, etc is known as principle
of procurement. The main aim of this principle is to minimize the risk of carrying finished
product inventory at various points in the supply chain by delaying product differentiations to the
latest possible moment before customer purchase
5.0 APPLICATION IN BIG BAZAR
Supply chain management has in recent years has played an important role in all the industries
concerned. It has not only paved way for the induction of information technology but has also
helped the manufactures in easy procurement of material and transferring the same to the ultimate
consumer.
5.1 RETAILERS
Retailers are the second last chain in the distribution of the product to the ultimate consumer.
Since they are at constant touch with the customer they are in a better position to understand their
needs and wants. As such they send request to the distributors and to the manufactures for goods
which are in demand. The manufactures through a well defined supply chain are able to send
goods to the retailers. In the absence of this chain the manufactures can lose the customer.
5.2 SUPPLIERS
In today’s scenario companies are not required to stock commodities in bulk owing to fluctuation
in the market related to product preference. As such manufactures do not store raw material but
place orders as and when the need arise. Here the role of supply chain comes into picture as it
helps the supplier in providing material to the manufacture at an appropriate time.
5.3 MARKET SEGMENTATION
Supply chain helps in the segmentation of customers based on the service needs of distinct groups
and adaptation to serve these segments profitability. This kind of segmentation can result in better
prediction of the demand from the individual customers. Further segmentation also leads to know
the demand of the products among the customer and also to know the future customer preference.
6.0 APPLICATION OF INFORMATION TECHNOLOGY IN SUPPLY CHAIN
MANAGEMENT OF BIG BAZAR IN INTERNET AGE
ELECTRONIC COMMERCE (E – COMMERCE)
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 25
The internet era has revolutionized commerce, making e- commerce a reality. The factors that
have contributed to the success of e – commerce, are lower purchasing cost, reduction of
inventories, effective customer service, marketing and sales etc. know time has come for the
paper based business to give away to electronic business when supplier and customer will transact
electronically. This would help in reducing cost, price, and increasing savings.
As such Big Bazar has tried to use three important dimension of e – commerce in his day to
day activities. These are as follows:
Reach is about customer information. It simply means as to how many customer a business
can access or how many products it can offer;
Richness is the depth and detail of the information that the business gives the customer or
collects about the customer;
Affiliation is about whose interest in business it represents. That is e – retailers with
navigational function are shifting their affiliation towards customer;
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 26
ECOMMERSE PROCESS
7.0 SUPPLY CHAIN MANAGEMENT WITH OTHER DEPARTMENTS
A supply chain management is the hub of a large part of a company’s business activity. By its
very nature, it has tried to maintain cordial relationship with all other departments in the firm, as
well with the supplier’s. The reason been as it has to operate in accordance and in line with all
other departments. I have tried to learn the role of supply chain with some of the departments in
retail sector. To which a brief description I am giving below:
7.1 SUPPLY CHAIN AND MANUFACTURING
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
Disseminate Knowledge?International Journal of Research in Management Science and Technology
(Disseminate Knowledge?IJRMST) Page 27
Supply chain plays an important role in the manufacturing, because it aims at procurement of
material at the right time and through the right channels. Maintaining coordination between the
two pays off in many ways. It assists in the efforts by obtaining faster responses from the supplier,
working with suppliers to improve their capabilities etc, which is generally not seen in the
common scenario.
7.2 SUPPLY CHAIN AND MARKETING
Supply chain should be marketing best friend as it directly or indirectly affects the sales process
of retailing. Further in case the product is not demanded or the sale is less than in that case the
supply management department can be intimated and they can further reduce the procurement of
the material from the supplier.
Beside this supply chain also provides immediate information regarding increase in the material
price. This helps the marketing department to evaluate the effects of rises in price estimates given
for the future sales quotations, on current selling price and on plans for the future product lines.
7.3 SUPPLY CHAIN MANAGEMENT AND FINANCE
The finance department of BIG BAZAR is charged with two principle responsibility – obtaining
funds and overseeing their use. Supply chain of BIG BAZAR is responsible for as much as eighty
percentages of firm’s financial resources. As such the chief financial officer has a vested interest
in cost efficient supply chain management. This department has some very important role to play
in supply chain as it determines the amount of resources that the firm needs to procure, when to
procure, what to procure etc
7.4 SUPPLY CHAIN MANAGEMENT AND QUALITY
In BIG BAZAR major emphasis is been given to quality both in terms of raw material
procurement and finished goods. As such quality professionals are involved not only in
maintaining quality but also undertaking the development of new products, sourcing and
minimizing quality problem throughout the supply chain.
8.0 FOUR PHASES OF SUPPLY CHAIN MANAGEMENT IN BIG BAZAR
The four phases of supply management require many perspective and inputs best obtained
through a cross – functional approach. The four phases of supply management are as follows:
8.1 GENERATION OF REQUIREMENT - The generation of requirement is a critical activity
that results in the identification of material to be purchased, along with the development of
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specification and statement of work describing the requirements. This is an important phase since
most of the designing is done relating to purchasing material, service and equipment. It also takes
into account the commercial issues like cost, availability, substitute and alike.
8.2 SOURCING- The main aim is relating to the identification and selection of the supplier
whose cost, quality, technology, dependability and service best suits the needs of the firm. Thus it
not only aims at identification but also in maintaining cordial relationship with them.
8.3 POST- AWARD ACTIVITIES- This activity ensures that the firm receives what was
ordered on time and at the price and quality specified. The activities that are been included are
supplier development, technical assistance, troubleshooting, and the management of contract
and the resultant relationship.
8.4 SUPPLY MANAGEMENT SYSTEMS- It is very important for a firm to have a
management system. A cross functional approach to supply management allows each functional
area affected by the procurement of material, equipment, and service to be involved at a point
where it may contribute to the lowest total cost. For instance we take the case of ‘operation has it
in the productivity implication of different material’.
As such these phases of supply chain gives us an insight about the manner in which the
activities are been conducted and how the process as a total works. Along with that it also enables
us to understand the uniqueness of supply chain and its effectiveness and long lasting use in the
retail sector
9.0 CUSTOMER FOCUS IN SUPPLY CHAIN MANAGEMENT
Therefore to attain these competitive advantages Big Bazar is making attempt to promote value to
its customer by performing activities more efficiently than that of its competitors. It is trying hard
to serve its customer base and has become a vital means of differentiation when product
differentiators are dwindling.
As such when we focus our study towards customer we basically try to identify:
The significance of customer in the supply chain;
The importance of customer-driven strategies;
The various strategies of customer satisfaction;
The imperatives for supply chain management;
The rationale of supply chain management towards customer.
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9.1 FOCUS ON CUSTOMER SERVICE
Effective customer service has become a competitive requirement and a way to attract and retain
customer. A focus logistics and customer service strategy is still a dream of various companies, to
which BIG BAZAR is responding positively.
Despite all these efforts it is still trying to accomplish a complete customer service by taking into
account the following:
To provide a quantitative understanding of the customer requirement for each element of
customer service, like delivery, reliability, availability etc;
To measure the relative importance of each element of customer service;
To assess the performance of the company and of its major competitors for each element of
customer service;
To provide an understanding of the relative significance of customer service issues related like
price, product and quality.
9.2 CUSTOMER – CENTRIC SUPPLY CHAIN
In the context of present scenario ‘customer satisfaction’ is something that keeps on revolving in
the minds of the competitors with reference to as how they could capture the market and have
their dominance in terms of their product in the market. As such the focus has now shifted from
product centered to customer centered because customer is considered as the king and unless they
do not consume the products the company cannot be successful
When we talk in terms of BIG BAZAR we find that BIG BAZAR because of its sound policy and
practical approach is able to provide the best service in the industry besides keeping lower cost
than that of its competitors. This has being possible because it has prepared a clear written
statement of his mission of the supply chain which is in consistent with key corporate strategic
thrust.
10.0 RESEARCH METHODOLOGY
Type of research carried out was EXPLORATORY in nature; the objective of such research is to
determine the approximate area where the drawback of the supply chain management lies and also
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to identify the course of action to solve it. For this purpose the information proved useful for
giving right suggestion to the organization
11.0 DATA COLLECTION METHOD
1 11 1. .1 1 S Se ec co on nd da ar ry y s so ou ur rc ce es s o of f D Da at ta a: :
Secondary data refer to the data that has been already collected .the secondary data, which has
been used to carry out this study, are as follow: Books, J ournals, Magazines, News papers,
Industry Reports, Companies, internet site, Some other relevant study material and websites.
12.0 CONCLUSION
Managing faster supply chain has become imperative to gain and sustain competitive advantage.
The challenge of the modern retail Company is to keep a holistic approach towards the
management for remaining competitive on an international basis. The focus is on the increasing
importance of the supply chain function to corporate competitiveness
As such a study of BIG BAZAR employees in supply department was conducted in order to
understand the effective use of supply chain management and its application in the light of
information technology. Research was conducted accordingly and a favorable response was seen
among the employees towards the adoption of supply chain management which can be seen from
the graphical representation.
The conclusion drawn is that most of the employees feel that use of information technology in
supply chain would definitely going to benefit the organization in the long run. Thus the
hypothesis set by me is accepted since BIG BAZAR does believe that information technology has
important role to play in the supply chain management.
Therefore it is the responsibility of the company to undertake some serious action plan to make
this introduced concept a success.
Further they should form a strong customer and supplier database and underline some strategies
in order to promote the supply chain and make employees aware about it.
In fact a growing number of organizations are realizing the need for strategic sourcing as supply
management.
REFRENCES
Volume 2, Issue 2, July? December 2014 ISSN No.2321?1245
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