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CHAPTER .1

INTRODUCTION

A supply chainis a network of facilities and distribution options that performs the functions ofprocurement 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.

The field of supply chain management has become tremendously important to companies in an

increasingly competitive global marketplace. The term supply chain refers to the entire network

of companies that work together to design, produce, deliver, and service products. In the past,

companies focused primarily on manufacturing and quality improvements within their four walls;

now their efforts extend beyond those walls to encompass the entire supply chain

. BACKGROUND

Various studies have indicated that supply management is one of the core functions of anorganization whether production oriented or service oriented. This supply managementconcept has evolved over the years from being simply a focus on purchasing to encompassingother related areas including the ultimate supply to the end users.) It has been observed thatthere are many views of supply chain management and some are quite elaborate and focus onoperations and others on information management. The growing importance of SCM suggestedthat a future focus would be on Kaizen or continuous improvement, because this is being

recognized as one of the core functions of corporate importance. It has been highlighted thatsupply management is crucial for organizations strategic planning functions. It has beenfocused on the evolution of supply chain management from simply purchasing or procurementto incorporating other functions including logistics and transportation and informationmanagementA brief review of the history of the development of SCM reveals that the importances of

purchasing function. This lead to the recognition of purchasing as a distinct corporate function,

which makes a contribution to overall company profitability. The essential elements of the

modern purchasing functions of the supply chain developed in the period from 1900 to 1939

were applied in World War I to purchase of war materials, with a particular focus on procuring

raw materials.

By the end of 1970s and the beginning of 1980s, the world business situation changed

drastically and was influenced by globalization, automation, technological change, increased

inflation, international competition and strategic alliances. These changes affected the SCM and

gave birth to an integrated approach to SCM, where the demand and requirements of the

customers and role of suppliers were accorded increased importance. In recent years,

purchasing and materials management have been considered vital in adding value to the overall

organization and increasing its profitability and in meeting the challenge of worldwide


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competition, rapidly changing technology and customer expectations. These changes have

increased the profile of SCM in the success of an organization by emphasizing the fact that

supply managers are active participants in the organizations strategic planning process. Thus

differing SCM definitions have emerged highlighting the importance of supply stages for the

overall success of an organization.

MEANING

Supply chain management is the systematic , strategic co ordination of the traditional business

functions with in a particular company and across the businesses with in the supply chain for

the purpose of improving performance .The supply chain consist of a company, immediate

supplier, immediate customers directly linked by one or more of the upstream and downstream

flows of product , service, finance and information. A supply chain includes all the processes

that add customer- desired value to material and bring it to the customer. This value gets added

at various stages of the journey that material takes till it reaches the customer. Supply chain

encompasses all these value adding stages.

DEFINATION

MARTIN CHRISTOPHERhas defined as, the management of upstream and downstream

relationship with suppliers and customers to deliver superior customer value at less cost to the

supply chain as a whole.

COOPER AND EIIRAM has defined as , an integrative philosophy to manage the total flow of a

distribution channel from suppliers to the ultimate user. Successful supply chain management

relies on forming strategic partnerships with trading partners along the supply chain , with one

partner playing a key role in coordinating and overseeing the whole supply chain

CURRENT SCENARIO

In a global scenario, the finished goods inventory is held at many locations anddistribution centers, managed by third parties. A lot of inventory would also be in thepipeline in transportation, besides the inventory with distributors and retail stockingpoints. Since any loss of inventory anywhere in the supply chain would result in loss ofvalue, effective control of inventory and visibility of inventory gains importance as a keyfactor of Supply Chain Management function. Traditionally, marketing, distribution,planning, manufacturing, and the purchasing organizations along the supply chain areoperated independently. These organizations have their own objectives and these areoften conflicting. Marketing objective of high customer service and maximum sales

value conflict with manufacturing and distribution goals. Many manufacturing operationsare designed to maximize throughout and lower cost with little consideration for theimpact of inventory levels and distribution capabilities. Purchasing contracts are oftennegotiated with very little information beyond historical buying patterns. The result ofthese factors is that there is not a single, integrated plan for the organization; there wereas many plans as business. Clearly, there is a need for mechanism through which thesedifferent functions can be integrated together. Supply chain management is a strategythrough which such integration can be achieved.


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SIGNIFICANCE

Supply Chain Strategies are the critical backbone to Business Organizations today.Effective Market coverage, Availability of Products at locations which hold the key torevenue recognition depends upon the effectiveness of Supply Chain Strategy rolled

out. Very simply stated, when a product is introduced in the market and advertised, theentire market in the country and all the sales counters need to have the product wherethe customer is able to buy and take delivery. Any glitch in product not being availableat the right time can result in drop in customer interest and demand which can bedisastrous. Transportation network design and management assume importance tosupport sales and marketing strategy.

Inventory control and inventory visibility are two very critical elements in any operationsfor these are the cost drivers and directly impact the bottom lines in the balance sheet.Inventory means value and is an asset of the company. Every business has a standardfor inventory turnaround that is optimum for the business. Inventory turnaround refers to

the number of times the inventory is sold and replaced in a period of twelve months.The health of the inventory turn relates to the health of business.

The .`Significance of Supply Chain Management thus is in :

* Reduced inventories along the chain

* Better information sharing among the partners* Planning being done in consultation rather than in isolation

The benefits too would be reflected in terms of :

Lower costs Better customer service Efficient manufacturing Better trust among the partners leading to win-win

Process integration and other efforts result in improved quality as higher profit marginsshall get reflected in creation of better facilities for manufacturing, product designresearch, enhanced customer service.

Increased globalization and competition has made supply chain management (SCM) avery important and critical issue for any company. SCM is all about getting the rightthings to the right places at the right time. It contributes to business performance byfinding out ways to get goods to the customer better, faster and cheaper.

The stakeholders of a typical supply chain include supplier, manufacturer, distributor,retailer and customer. Thus, SCM aims at movement of goods and services from one


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end of this chain to the other through different stages so as to improve the efficiency,productivity and profitability of the entire process. When the customer has direct accessto global suppliers, the number of competing vendors in any category is huge. Globalmarkets force companies to main competitive prices. Thus, the ability to produce agiven product at a lower cost can give any company tremendous competitive advantage

irrespective of its.

OBJECTIVE

Objective of supply chain management are to optimize pre and post-production inventory levels

,obtain greater efficiency from labour and equipment and space across the company and

provide flexible planning and control mechanism

Supply chain management strives for single chain of supply having the following objectives:

1. solving suppliers problem and beyond his level

2 customer service performance improvement

3 .reduction of pre and post-production inventory

4 .minimizing variance by means of activities like Standardization ,variety reduction, etc

5. minimum total cost of operation and procurement

6 .product quantity control

7. achieving maximum efficiency in using labour, capital, and plant throughout the company.

8.flexible planning and control procedures.

SCOPE

Principles of Supply chain management too define its scope.Customer Management ,Process integration , Leveraging of Manufacturing andSourcing, Strategicalliances and relationship management etc throw enough light on the length and widthof supply chain management's domain.

With Globalizationand resulting competition compelling the business entities the worldover to change and adapt the new technologies and concepts ,Supply ChainManagement, as concept and tool has emerged as the most important field ofmanagement today. Thanks to the advancement in the Information technology,managing diverse affairs of the business starting from customer's customer tosupplier's supplier is easily attainable.


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Management of supply chain as such is management of various functions carried out ina continuous supply chain environment such as demand forecasting, productionplanning, procuring raw materials for production, manufacturing , managing inventory,processing input to convert into output and finally arranging smooth distribution of thefinished product to the retailers.


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CHAPTER 2

1. TOPIC;- organization study carried out at Big Bazaar

NAME;- Harsha B.N

INTRODUCTION;-

Organization isa set of people working together for accomplishment of a common

objective organization structure is essential for continuity of the mission and co-

ordinates and control the business activities. The companys leading formats include

pantaloons , a chain of fashion outlets , Big Bazaar , a uniquely Indian hypermarket

chain Food Bazaars, a supermarket chain , blends the look , touch and feel of Indian

Bazaars with aspects of modern retail like choice, convenience and quality and central.

CONCLUTION;-

Big Bazaar has built a very emotional and cordial relationship with its customer. It is

also very intending to build iong term relationship with all its stakeholder which is very

essential for a successful business venture.

It is observed that the departmental manager directly report to the store manager who

in turn report to the zonal head.

The company is reaching out to all the section of the society as it is creating a

hypermarket where not only the rich people shop but also the middle and the lower

class customer come to enjoy the whole shopping experience.

2. TOPIC;- Food supply chain management of Big Bazaar

NAME;- Ankit Garg, Mayur Singhal, Parul Sharma, Varun Gupta ,Sunil Bhardwaj

INTRODUCTION;-

The present competitive environment customers have become more demanding and

asking for quality food which guarantees the safety. Big Bazaar shortened the supplychain path in such a way that , the farm product can now directly reach the stores , or

take a slightly loner route af first getting collected at a collection centre, which is them

passed on to the processing and distribution centre , from where they would be

delivered to the store for sale to customerThe food supply chain is complex and difficult to

manage due to its perishable nature andshort shelf life of the products as compared to other supply

chains like electronics, homeneeds, consumer durables etc. Shopping in the Big Bazar is a great

experience as one can find almost everything under thesame roof.


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CONCLUTION;-

Big Bazaar is the leading retail chains in the country and is growing with everyday,

especially in the food product category. With more and more new entrants into the Indian retail

market, Big Bazaar is finding it hard to squeeze out more discounts for customers than

its competitor sand yet maintain profit. As such it depends heavily on a highly-efficient supply chains

to procure and deliver its products of best quality at the cheaper rates. Food Bazaar has

links with farmers growing potatoes and fruits. It has also sourced produce from farmers

growing exotic vegetables like red pepper, mushroom, etc.

3. TOPIC;- Quality packaging survey from Big Bazaar

NAME;- B. Ganesh Gandhi , Hari Ram , Sathish Kumar

INTRODUCTION;-

big bazaar stocks products which are most efficiently packaged but slightly higher in

price and also products that are used by the common man with slightly inferior

packaging but with the cost advantage.Big Bazaars procures its lot of food stall fromlocal producers like cakes, dry fruits, package tea, coffee, etc., due to the constraints

of budget and technology do not to follow the best international practices.Bakeryproducts contain high nutritive value and are manufactured from wheat-flour,

sugar, baking powder, condensed milk, ghee (fat), salt, jelly, dry fruits, various

essences and flavoring etc

CONCLUTION;-

Big Bazaar Selling products include items of different packaging requirements, which are met

bay range of plastic materials in the form of films, laminates and thermoformed trays. These

materials provide adequate protection against moisture loss/gain, retain the taste and aroma,

and are hygienic and safe for food contact. Other additional properties such asmachinability,

printability and cost effectiveness make them the ideal choice for a package.

4.

TOPIC;-A study on the effective promotional strategy which influences customer

purchase a product of big bazaar.

NAME;- Manjunath reddy


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INTRODUCTION;-

Retail means selling goods and services in small quantities directly to customer . Retailing

consist of all activities involved in marketing of goods and services directly to consumer for their

personnel family and household use , Retailing is one of the biggest sectors and it is witnessing

revolution in India signifies the beginning of retail revolution.

CONCLUTION;-

Indian retail sector is witnessing one of the most hectic marketing activities of all times. There is

always a first mover advantage in on upcoming sector . In India, that advantages goes to BIG

BAZAAR . IT HAS BROUGHT ABOUT MANY CHANGES IN THE BUYING HABITS OF

PEOPLE . It has created formats, which provide all items less than one roof at low rates.

The consumer preferences are changing and the moving from Traditional Kirana stores to

modern retail outlet. Its the main challenge to the modern retail outlets to attract the customer

towards them from that of competitors . The promotional activity of the company , which famous

as less price than other as it say Nobody sells cheaper and better is made its place in mindscustomer.

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