“AN EVALUATION OF APPLICATION

OF LOGISTICS AND SUPPLY CHAIN

MANAGEMENT TECHNIQUES IN MEGA
RETAIL CHAIN – AN EXPLORATORY
STUDY WITH BIG BAZAAR, MYSORE”
OBJECTIVE OF THE
STUDY
 OBJECTIVE OF THE STUDY

The objectives of the Projects are: -

OBJECTIVE

 To know the effectiveness of logistics management of Big Bazaar and to bench mark the
organization with respect to the industry

 To understand role of logistics system in functionality of Big Bazaar

 To evaluate the image of Big Bazaar in customers mind

 To find out the customer satisfaction with the existing services

SCOPE OF THE STUDY

In order to understand the concepts of logistics in terms of practical usage and to glimpse in to
the how real company or organization uses logistics as a formidable tool to gain customer
satisfaction, reduce overall cost and increase efficiency I selected ― Big Bazaar‖ the best retailing
company of India. The study is done only how Big Bazaar uses logistics system effectively.
There are following strength and weakness of Big Bazaar.

COMPANY STRENGTHS
  STRONG BRAND IMAGE: In 1990, Big Bazaar becomes one of the most trustable
retailing company in India. Big Bazaar has also developed their own quality system that
matches their customer‘s standards.
 SERVICES AND THECHNOLOGY: Big Bazaar uses and continues to search for new
technology. They spend nearly 10% of total revenues, for improving logistics. Big Bazaar
also has excellent product service that provides customers a good vision on company.
 CORPORATE SYMBIOSIS: Big Bazaar has developed its own organizational
structure to serve the global market, which it has called ―corporate symbiosis.‖ This
approach encompasses the empowerment of the Big Bazaar personnel at a local level, at
the same time recognizing the interdependence of the parts of Big Bazaar as a corporate
whole.

Weakness

 Low customer loyalty

 Time gap between order and processing
 Low internal warehouse capacity
 Employees not trained
 Less conversion level
 Frauds in retail
 Chapter-1
INTRODUCTION

Chapter-1
 INTRODUCTION

MEANING OF LOGISTICS

Logistics is concerned with getting the product and services where they are needed and when
they are desired. It is difficult to accomplish any marketing or manufacturing without logistical
support. It involves the integration of information, transportation, inventory, warehousing,
material handling, and packaging.

The operating responsibility of logistics is the geographical repositioning of raw materials, work
in process and finished inventories where required at the lowest cost possible support no activity
can be performed to meet defined goal. The current challenge is to perform logistics
scientifically in order to optimize benefits to the organization. Logistics is planning function of
management. Logistics function is concerned with taking products and services where they are
needed and when they are needed.

LOGISTICS MANAGEMENTS:

Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective, forward and backward (reverse) flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet
customer‘s requirements rather to the customers delight. A professional working in field of
logistics management is called a logistician

Logistics, as a business concept evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one‘s business with materials, and shipping out products in an
increasingly globalize supply chain, calling for experts in the field who are called supply chain
logisticians. This can be defined as having the right item in the right quantity at the right time at
the right place for the right price and to the right target customers and it is the science of process
having its presence in all sectors of the industry. The goal of logistics work is to manage the
fruition of project life cycle, supply chains and resultant efficiencies. Logistics is concerned with
getting the products and services where they are needed or when they are desired. It is difficult to
accomplish any marketing or manufacturing without logistical support. It involves the integration
of information, transportation, inventory, warehousi9ng, material handling, and packing. The
operating responsibility of logistics it the geographical repositioning of raw materials, work in
progress and finished inventories where required at the lowest cost possible.

ORIGIN AND DEFINITION OF LOGISTICS

The term ‗logistics‘ originates from the ancient Greek Logos (ratio, word, calculation, reason,
speech, oration). Logistics is considered to have originated in the military‘s need to supply
themselves with arms, ammonization and rations as they moved from their base to a forward
position. In ancient Greek, roman and byzantine empires, there were military officers with the
little ―logistickas‖ who were responsible for financial and distribution of supplies.

The oxford English dictionary defines logistics as ― the branch of military science having to do
with procuring maintaining and transporting material, personnel and facilities.‖

The American council of logistics management defines logistics as‖ the process of planning,
implementing and controlling the efficient and effective flow, and storage of goods, services and
related information from the point of origin to the point of consumption for the purpose of
conforming to customer requirement.‖

IMPORTANCE OF LOGISTICS MANAGEMENTS

1.LOGISTICS IS THE BED ROCK OF TRADE AND BUSINESS

Without selling and or buying there can be no trade and business. Buying and or selling takes
place only when goods are physically moved into and or away from the market.

Take away logistical support trade and business will collapse

2.INTEGRATES LOGISTICAL ACTIVITES

In conventional management environment, various activities of logistics work in isolation under

different management function. Each pocket trying to sub optimizes its objectives at the cost of
overall organizational objectives. Purchasing trying to purchase at minimum price at the cost of
what is needed by operation. Operation produce large quantities at minimum production cost
ignoring demand leading to doom inventory. Logistics function of management brings all such
functions under one umbrella pulling down inter departmental barriers.

3.COMPETITIVE EDGE

In the fiercely competitive environment logistics provides the edge. Due to technological
revolution most of the products are moving into commodity markets. In a commodity market
where price is controlled by competition, where there is no product differentiation in terms of
quality parameters like performance and reliability, where brands are almost irrelevant,
competitive edge is that of availability of product and service in terms of time, place and
quantity.

4.LEADS TO CUSTOMER SATISFACTION

Through superior customer service organizational objectives of P (productivity), Q (quality), C
(cost), D (delivery), E (employee morale), F (flexibility), S (safety), H (health), E (environment)
are set to meet customer expectation.

5.SUPPORTS CRITICAL FUNCTIONS LIKE OPERATIONS AND MARKETING

Strong logistics support enables a company to move towards JUST IN TIME production system
for survival in high competitive market

6.LOGISTICS WINS OR LOSES WARS

British lost American war of independence due to poor logistics. Rommel was beaten in the
desert by superior logistics of allies

Logistics helps a lot in maintaining 4 P’s

The 4 P’s of marketing mix

Product mix
A product has both tangible and intangible components. Customers view product as ― boundless
of satisfaction‖ rather then just physical things.

 Quality, technology
 Packaging
 Labeling
 Branding
 Trademark
 Merchandising
 Size, design, colour, feature
 Service
  Warranty
 Product line and range

Price mix
Price is an important consideration in buying decisions. Price also denotes quality in the
costumers mind a psychological factor for some products

 Pricing policies
 Credit terms
 Cost and profit
 Allowances and discounts
 Computation
 Terms of delivery

Place mix
The marketer has the responsibility of making his product available near the places of
consumption so that consumer can easily buy it. If the brand proffered by consumer is not easily
available at the convenient location

 Distribution channels
 Transportation warehousing and storage
 Inventory level
 Positionig
 Promotion mix
 Advertising
 Sales promotion
 Personal relations
 Publicity
 Direct responses
Promotion mix
Marketing promotion is a management process trough, which an organization develops, presents
and evaluates a series of messages to an identified audience. So, effective promotion depends on

 The nature of communication

 The target audience
 The environment in which it is received
 The receiver‘s perception of the source as. E.g. Friends, reference group etc.

LOGISTICS MANAGEMENT AND SUPPLY CHAIN

SCM and logistics management, the definitions made by the Council of Supply Chain
Management Professionals, CSCMP. SCM is defined as ― supply chain management
encompasses the planning and management of all activates involved in sourcing and
procurement, conversion, and all Logistics Management activities. Importantly, it also included
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service provider, and customer. In essence, supply chain management integrates
supply and demand management within and across companies ―supply chain encompass the
companies and the business activities needed to design RFDn, make, deliver, and use a product
or service. Business depends on their supply chains to provide them with what they need to
survive and thrive. Every business fits into one or more supply chains and has a role to play in
each of them. The pace of change and the uncertainty about how markets will evolve has made it
increasingly important for the companies to be aware of the supply chains they participate in and
to understand the roles that they play. Those companies that learn how to build and participate in
strong supply chains will have substantial competitive advantages in their markets. Supply chain
management is the coordination of production, inventory, location, and transportation among the
participants in supply chain to achieve the best mix of responsiveness and efficiency for the
market being served. There is a difference between the concept of supply chain management and
the traditional concept of logistics. Logistics typically refers to activities that occur within the
boundaries of single organization and supply shins refer to networks of companies that work
together and coordinate their action to deliver a product to market. Also traditional logistics
focuses its attention on activities such as procurement, distribution, maintenance, and inventory
management. Supply chain management acknowledges all of traditional logistics and also
includes activates such as marketing, new product development, finance, and customer service.
In the wider view of supply chain thinking, these additional activities are now seen as part of
work needed to fulfill customer requests. Effective supply chain management requires
simultaneous improvement in both customer service level and the internal operating efficiencies
of the companies in the supply chain. Customer service at its most basic level means consistency
high order fill rates, high on-time delivery rates, and a very low rate of product returned by
customer for whatever reason. Internal efficiency for organizations in a supply chain means that
these organizations get an attractive rate of returns on their investments in inventory and other
assets and those they find ways to lower their operating and sales expenses.
 CHAPTER-2

BACK GROUND STUDY

CHAPTER-2

BACK GROUND STUDY

Organization is set of people working together for accomplishment of a common objective.
The roles and responsibilities are stated clearly without any ambiguity. The positions
occupied by different individuals are presented in the form of organization chart.
Organizational structure is essential for continuity of the mission & co-ordinates & controls
the business activities. Organization helps management to perform its actives effectively.
Optimum use of technological improvement growth & diversification, creatively, effective use
of physical resources & HR.

1.1 Need for the Study

This study is taken up to fulfill the requirement of M.B.A degree course of Mysore University.
The Project is undertaken during Jan 2013 to Feb 2013 and the main purpose of the Project is to
know the application of the theoretical aspects in our course in the corporate environment and
gain firsthand experience and expose ourselves to corporate policies, ethics, culture, practices,
procedures, facts about the work collate and policies of the company.

1.2 Objectives of the study

 To understand the organization structure or hierarchy of the company.
 To understand the working of the various departments.
 To enable us to gain an insight into the corporate world.
 To understand the various responsibilities and duties carried out by each department.
 The study is aimed at understanding how an organization practically works in the real
situation.

1.3 Scope of the Study

 This report is based on the study conducted at Big Bazaar, Mysore.
 It aims at understanding the company's establishment. Organization structure, departments,
techniques, marketing strategies and the advantages it is having over the competitors.
 An attempt is made to analyze the company's performance in comparison to the theoretical
 aspects.
 It aims to understand the skills of the company in the areas like technological
advancements, competition and in management.
 Study of logistics and distribution of marketing
 Knowing how logistics is done in Big Bazaar

1.4 Limitation of the Study

 Time limit is a major constraint

 As per the company rules many information was not disclosed

 As the managers are busy in their daily schedules it is not possible for us to spend more time
in interaction and discussion with them.

1.5 Methodology adopted for the Study

Observational method

Observation were made in the Big Bazaar store regarding the customer groups present
there, retail formats adopted by the store, various verticals inside the store for each category of
product, ambience, services provided to buyers and discount techniques

 Observing the working of various departments like finance safety, human resource
production, purchasing etc.

 Discussion with the company executives, managers and employees

  Visiting and surfing websites of the company.

Survey Method

Personal meeting with manager and assistants. Questionnaire was prepared for the staff at
Big Bazaar, which included several open-ended and close-ended questions aimed at knowing the
following

 Why Big Bazaar

 Loyalty level
 Effect of logistics

1.6 Sources of Data

 Primary data
 Secondary data

1.7(a) Primary Data

The data collected for the first time through observation and interview method. The data is
collected by observing the working of various departments and also by interviewing the managers
of all the departments. It is also obtained by the help of staff members.

1.7(b) Secondary Data

The data is collected by secondary sources also. The data is collected through company
manual, product brochure, company website and annual report.
 Chapter-3

INDUSTRY PROFILE

Chapter-3
 INDUSTRY PROFILE

Retail is India's largest industry, accounting for over 10 percent of the country's GDP and
around 8 percent of the employment. Retail industry in India is at the crossroads. It has emerged
as one of the most dynamic and fast paced industries with several players entering the
market. But because of the heavy initial investments required, break even is difficult to
achieve and many of these players have not tasted success so far. However the future is
promising; the market is growing, government policies are becoming more favorable and
emerging technologies are facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry. The
whole concept of shopping has altered in terms of format and consumer buying behavior,
ushering in a revolution in shopping in India. Modern retail has entered India as seen in
sprawling shopping centers, multi-storied malls and huge complexes offer shopping,
entertainment and food all under one roof. The Indian retailing sector is at an inflexion point
where the growth of organized retailing and growth in the consumption by the Indian population
is going to take a higher growth trajectory. The Indian population is witnessing a significant
change in its demographics. A large young working population with average age of 24 years,
nuclear families in urban areas, along with increasing working-women population and
emerging opportunities in the services sector are going to be the key growth drivers of the
organized retail sector in India.

Some Key Facts:

 Retail is India's largest industry accounting for over 10 percent of the country's GDP

and around 8 percent of the employment

 The market size of Indian retail industry is about US $312 billion.

India's Consumption Cosmos

During the past decade, Private Final Consumption Expenditure has been the key driver of
economic growth in India.
The S350 Billion Consumption spending provides the single biggest business opportunity
in India and is divided into some key categories led by food, fashion and home
products.

$ource - Central Stanstical Organization Advance Estimates, zou-os, Images Retail McKinsey Se Co
 Chapter-4
Company Profile
 Chapter-4

Company Profile

Mr. Kishore Biyani CEO, Future Group

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, the company operates over 12 million square feet of retail space, has over 1000
stores across 71 cities in India and employs over 35,000 people.
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, Fashion Station, Mobile Bazaar and Star Sitara (Beauty
clinic). 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, selling home furniture products and E-Zone focused on
catering to the consumer electronics segment.

Pantaloon Retail was awarded the 'International Retailer' of the Year 2007, by the US-based
National Retail Federation, the largest retail trade association and the 'Emerging Market
Retailer' of the Year 2007 at the World Retail Congress in Barcelona.

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

The group's subsidiary companies include, Home Solutions Retail India Ltd, Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing.

CORPORATE GOVERNANCE REPORT

Corporate Governance indicates transparency, accountability and reliability on any organization.

One of the core missions of the organization is to achieve excellence in all spheres, be it
profitability, growth its market share, superior quality of products and services to the
satisfaction of the stakeholders through an efficient and effective code of governance.

We aim at providing fairness, clarity and transparency in all our dealings and increasing
the value of all stakeholders of the Company.
 Future Group

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of 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 12 million square feet
of retail space in 71 cities and towns and 65 rural locations across India. Headquartered in
Mumbai (Bombay), Pantaloon Retail employs around 35,000 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 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 a hypermarket format that combines the look,
touch and feel of Indian bazaars with the choice and convenience of modern retail.

In 2008, Big 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 group's specialty retail formats include, books and music chain. Depot, sportswear retailer.
Planet Sports, electronics retailer. Ezone, home improvement chain, Home Town and rural
retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com.

Future Capital Holdings, the group's financial arm provides investment advisory to assets
worth over $I billion that are being invested in consumer brands and companies, real estate,
hotels and logistics. It also operates a consumer finance arm with branches in 150 locations.

Other group companies include, Future General, the group's insurance venture in
partnership with Italy's General Group, Future Brands, a brand development and IPR company,
Future Logistics, providing logistics and distribution solutions to group companies and business
partners and Future Media, a retail media initiative. The group's presence in Leisure &
Entertainment segment is led through. Mumbai-based listed company Galaxy
Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. And family
entertainment centers, F123. Through its partner company, Blue Foods the group operates
around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen,
Noodle Bar, The Spoon, Copper Chimney and Gelato.

Future Group's joint venture partners include, US-based stationery products retailer, Staples
and Middle East-based Axiom Communications.

Future Group believes in developing strong insights on Indian consumers and building
businesses based on Indian ideas, as espoused in the group's core value of ‗Indianness‘
The group's corporate credo is, ‗Rewrite rules, Retain Values.‘

CONSUMPTION COSMOS

The retail formats are geared to capture Consumption Spending in key categories in both
value and lifestyle segment. And specialized businesses backed by capital and investments in
developing the necessary consumption infrastructure is helping build consumption

This empowers Pantaloon Retail to build a comprehensive business model that can capture a
dominant share of the single biggest business opportunity in India - the consumption space.

Board of Directors
 Mr. Kishore Biyani
Managing Director

 Mr. Gopikishan Biyani

Whole time Director

 Mr. Rakesh Biyani

Whole time Director

 Mr. Shailesh llaribhakti

Director

 Mr. S. Doreswamy
Director
  Dr. Darlie Koshy
Director

 Mr. Anil Harish

Director

 Ms. Bala Deslipande

Director

 Mr. Vijay Kumar Chopra

Director

Organization Profile

Big Bazaar is a chain of department stores in India currently with 100 outlets. It is owned by
Pantaloon Retail India Ltd, Future Group. It works on the same economy model as Wal-Mart
and has been successful in many Indian cities and small towns. The idea was pioneered by
entrepreneur Mr. Kishore Biyani, the CEO of Future Group. Currently Big Bazaar stores are
located only in India. It is the fastest growing chain of department stores and aims at having
350 stores by 2010.

Big Bazaar has democratized shopping in India and is so much more than a hypermarket. Here
you will find over 170,000 products under one roof that cater to every need of a family,
making Big Bazaar India's favorite shopping destination.

At Big Bazaar, you will get the best products at the best prices—this is our guarantee. From
apparel to general merchandise like plastics, home furnishings, utensils, crockery, cutlery,
sports goods, car accessories, books and music, computer accessories and many more. Big
Bazaar is the destination where you get products available at prices lower than the MRP,
setting a new level of standard in price, convenience and quality.

If you are a fashion conscious buyer who wants great clothes at great prices, Big Bazaar is the
place to be. Leveraging on the company's inherent strength of fashion, Big Bazaar has created a
strong value-for-money proposition for its customers. This highlights the uniqueness of Big
Bazaar as compared to traditional supermarkets, which principally revolve around food, groceries
and general merchandise.
Big Bazaar has clearly emerged as the favorite shopping destination for millions of its
customers, across the country, its success is a true testament to the emotional bonding it has
established with the Indian customer, on account of its value offerings, inspirational appeal and
service levels. We believe Big Bazaar is a true pan-Indian model that can enter into most towns in
India and democratize shopping everywhere. 25,26 and 27 January 2009... India's Sabse Sasta
Din

The acceptance and loyalty that Big Bazaar has garnered over the years was well evident on
26 January 2009.

On the day India celebrates its Republic Day; the company honored the consumer by calling it
the 'Maim Savings Day'. Shoppers at all Big Bazaar and Food Bazaar outlets across the country
were offered products at prices never heard before in the history of shopping.

The offers were spread across categories from electronics to utensils, front apparel to
furniture and food. This event received tremendous respouse from the regular and an entirely
new set of shoppers, which resulted in nearly 2 million people visiting the stores on that day.
And most stores were able to post record sales for a single day.

Company History
1987 Company incorporated as 'Manz Wear Private Limited'. Launch of Pantaloons trouser,
India's first formal trouser brand.

1901 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – Exclusive menswear store in franchisee format lunched
Across the nation. The company starts the distribution of branded garments through
multi-brands retail outlets across the nation

1995 John Miller Formal shirt brand launched.

1997 Company enters modern retail with the launch of the first 8000
2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore
and Hyderabad.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central - India's first seamless mall is launched in Bangalore.

2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League
Clothing and Planet Retail.

Sets up India's first real estate investment fund Kshitij to build a chain of shopping
malls.
2006 Future Capital Holdings, tile company's financial is formed to manage over
$1.5billion in real estate, private equity and retail infrastructure funds. Plans forays
into retailing of consumer finance products.

Home Town, a home building and improvement products retail chain is launched
along with consumer durables format, Ezone and furniture chain, Furniture Bazaar.

Future Group enters into joint venture agreements to launch insurance products
with Italian insurance major, General. Forms joint ventures with US office
stationery retailer, Staples.

2007 Future Group crosses $1 billion turnover mark. Specialized companies in

Retail media, logistics, IPR and brand development and retail-led technology services
become operational.
Pantaloon Retail wins the 'International Retailer of the Year' at US based National
Retail Federation convention in New York and 'Emerging Retailer' of the Year
award at the World Retail Congress held in Barcelona.

Futurebazaar.com heroines India's most popular shopping portal.

2008 Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering in the Indian capital markets.
Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a
 hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark. Future Group acquires
rural retail chain, "Aadhar present in 65 rural locations.

Future Group's Vision

"To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the most
profitable manner."

One of the core values at Future Group is, 'India ness' and its corporate credo are —
"Rewrite rules, Retain values."

Future Group's Mission:

 We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.
 We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments — for classes and
masses.
 We shall infuse Indian brands with confidence and renewed ambition.
 We shall be efficient and, cost-conscious and committed to quality in whatever we do.
 We shall ensure that out positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.

Core Values
 Indianness: confidence in ourselves.

 Leadership: to be a leader, both in thought and business.

 Respect & Humility: to respect every individual and be humble in our conduct.

 Introspection: leading to purposeful thinking.

 Openness: to be open and receptive to new ideas, knowledge and information.

 Valuing and Nurturing Relationships: to build long term relationships.

  Simplicity 8z. Positivity: Simplicity and Positivity in our thought, business and work.

 Adaptability: to be flexible and adaptable, to meet new challenges.

 Flow: to respect and understand the universal laws of nature.

Future Plans

The Company would continue to pursue its aggressive growth to strengthen its position as a
leading player in the consumption space in India, with an aim to capture increasing share of the
consumer's wallet. The Company would continue with its expansion plans and would continue
to increase its presence on a pan-India basis by opening more retail outlets in tier 2 and tier 3
cities and by further strengthening its position in key metro cities.

The Company has planned to increase its operating retail space from around /1 million square
feet currently to around 12 million square feet by FY08-09. The various subsidiary companies of
the Company, which have been created to cater to various consumption categories, are currently
in initial set-up phase. Most of them will come into their own, pursuing aggressive growth plans
to achieve scale and garner increasing market share. The Company will also be able to unlock
value out of these businesses by listing these subsidiary companies, and partnering with
strategic partners in them, at an appropriate time.

The Company, operating in the consumption space, has added IT services and education to its
portfolio of businesses, apart from the existing consumer finance, insurance, media, logistics and
brand businesses. All these businesses will help in capitalizing on the synergies with the retail
business to further enhance shareholder's wealth.
Swot Analysis
Swot Analysis

Strengths

 Low cost
 Cost cutting by reducing intermediaries
 Promotional offers on Wednesday
 Location
 Home delivery facility

Weakness

 Low customer loyalty

 Time gap between order and processing
 Low internal warehouse capacity
 Employees not trained
 Less conversion level
 Frauds in retail

Opportunities

 Percolating down
 Rural retailing
 Kids and teens retailing segment
 Organized retail is only 3% of the total retailing market in India
Treats

 Shopping culture
 Uncertainty in market position
 New entrants like reliance
 CHAPTER-4

STUDY OF LOGISTICS
AND DISTRIBUTION IN
BIG BAZAAR STORES
 CHAPTER-4
STUDY OF LOGISTICS AND DISTRIBUTION IN BIG BAZAAR STORES

Big Bazaar is a part of future group so most of its logistics and distribution is done by future
logistics

LOGISTICS

INTRODUCTION TO LOGISTICS

One of the most important challenge in organized retail in India is faced by poor supply chain
and logistics management. The important can be understood by the fact that the logistics
management cost component in India is a high as 7% to 10% against the global average of 4% to
5% of the total retail price. Therefore, the margins in the retail sector can be improved by 3% to
5% by just improving the supply chain and logistics management.

Logistics and Supply Chain enables an organized retailer to move or store products more
effectively. Efficient logistics management not only prevents needless movement of goods,
vehicles transferring products back and forth; but also frees up storage space for more productive
use.

 Logistics is the art and science of managing and controlling the flow of goods, energy,
information and other resources like products, services and people from the source of
production to the marketplace.
 Its important to have professional logistical support logistical
 The operating responsibility of logistics is the geographical repositioning of raw
materials, work in process and finished inventories where required at the lowest cost
possible
SCENARIO OF LOGISTICS IN INDIA

The logistics industry in India is evolving rapidly and it is the interplay of infrastructure,
technology and new types of service providers that will define whether the industry is able to
help its customers reduce their logistics costs and provide effective services (which are also
growing)

Changing government policies on taxation and regulation of service providers are going to play
an important role in this process. Coordination across various government agencies requires
approval from multiple ministries and is a road block for multi modal transport in India. At the
firm level, the logistics focus is moving towards reducing cycle times in order to add value to
their customers.

Consequently, better tools and strategies are being sought by firms in order to enhance their
decision-making. In this paper, we provide a perspective on these issues, outline some of the key
challenges with the help of secondary information, and describe some interesting initiatives that
some firms & industries are taking to compete through excellence in managing their logistic.

Some Peculiarities of the Indian Supply Chains

The Indian logistics sector has typically been driven by the objective of reducing transportation
costs that were (and often continue to be) inordinately high due to regional concentration of
manufacturing and geographically diversified distribution activities as well as inefficiencies in
infrastructure and accompanying technology. Freight movement has slowly been shifting from
rail to road with implications on quality of transfer, timeliness of delivery and consequently costs
except for commodities, which over long distances, predominantly move through the extensive
rail network. More on the manufacturer issues later.

The transportation industry is fragmented and largely un- organized – a large number of
independent players with regional or national permits that carry freight, often with small fleet
size of one or two single-axle trucks. This segment carries a large percent of the national load
and almost all of the regional load. This fragmented segment comprises owners and employees
with inadequate skills, perspectives or abilities to organize or manage their operations
effectively. Low cost has been traditionally achieved by employing low level of technology, low
wages (Due to lower education levels), poor maintenance of equipment, overloading of the truck
beyond capacity, and price competition amongst a large number of service providers in the
industry. Often, one finds transportation cartels that regulate supply of trucks and transport costs.
However, the long run average cost of transport operations across the entire supply chain may
not turn out to be low
Distribution

Distribution is one of the 4 aspects of marketing

 Traditionally, distribution had been seen as dealing with how to get the product or service
to the customer.
 Distribution is done by distributor who is the middleman between the manufacturer and
retailer
 Supply chain is a coordinated system of organization, people, activates. Information and
resources involved in moving a product or services in physical or virtual manner from
supplier to the customer.
 Supply chain activities transform raw materials and components into a finished product
that is delivered to the end customer

Warehouses
Warehouses of big bazaar are located at boomanahalli and hasketta. Suppliers of various
products to warehouses from warehouses goods supplied to internal warehouses.

In some cases as in food items vendors directly sell to retailers

INTEGRATED LOGISTICS

Logistics is viewed as the competency that links an enterprise with its customers and suppliers.
Information from and about customer‘s flows through the enterprise in the form of sales activity,
forecasts and orders. As products and materials are procured, a value added inventory flow is
initiated that ultimately results in ownership transfer of products to customers. Thus the process
is viewed in terms of two inter-related efforts, inventory flow and information flow.
 Inventory flow

SUPPLIERS PHYSICAL
DISTRIBUTION MANUFACTURING
SUPPORT

INFORMATION FLOW CUSTOMER

Inventory Flow
The management of logistics is concerned with the movement and storage of materials and
finished products. From the initial purchase of a material or component, the logistical process
adds value. By moving inventory when and where needed. Thus the material gains value at each
s t e p . For a large manufacturer, logistical operations may consist of thousands of movements,
which ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer
or customer.

In order to understand logistics it is useful to divide it into three areas:

1.Physical distribution

2.Manufacturing support

3.Procurement

For BIG BAZAAR

Big Bazaar is completely product oriented therefore it have its own material movement. That
means it only involves physical distribution and procurement. Procurement also includes the
material needed for packaging such as paper, molded trays and boxes, wooden crates, standard
containers wraps, plastic inlays etc. The materials or the goods collected from the suppliers
(goods like clothing, household good, chemicals, etc.) are weighed, checked for condition, and
depending upon its various characteristics it is packed. The goods are then dispatched to
their destinations.
INFORMATION FLOW

Information flows identifies specific location within a logistical system that have requirements.
Information also integrates the three operating areas. The primary objective of developing and
specifying requirements is to plan and execute integrated logistical operations.

LOGISTICAL INFORMATION INVOLVES TWO MAJOR TYPES OF FLOWS :

1.Coordination flows
2.Operation flows

1.PLANNING AND COORDINATION FLOWS

Coordination is the backbone of the overall information system.

Strategic objectives:
Strategic objectives detail the nature and location of customers, which are matched to the
required products and services to be performed.

FOR BIG BAZAAR

It implies estimating the time required for collecting the goods from the suppliers and then
estimating the time for goods to reach the warehouse

FORECASTING

Forecasting utilizes historical data, current activity levels, and planning assumptions to predict
the future activity levels. Logistical forecasting is generally concerned with relatively short-term
predictions.

The overall purpose of information planning/coordination flow is to integrate specific activities

within a firm and to facilitate overall integrated performance.
FOR BIG BAZAAR

Big Bazaar whole business is dependent on products which are going to be delivered from there
suppliers. Based on the distance between the suppliers location and warehouse location, the
accessibility to the warehouse, etc. Big Bazaar have fine tuned the process of delivery. They can
accurately gauge how much time it will take for goods to reach its end destination.

2.OPERATIONAL FLOWS

The second aspect of information requirements is concerned with directing operation to receive,
process, and ship inventory as required supporting customer and purchasing orders. Operational
requirements deal with
 Order Management
 Order Processing
 Distribution operations
 Inventory Management
 Transportation and Shipping
 Procurement

FOR BIG BAZAAR

Big Bazaar still doesn‘t have the tracking information for their goods, which were delivered by
their supplier for them. They have to relay on their truck drivers only for exact position of there
goods. This made them to fall behind from there compotators.
INNOVATIVE SUPPLY CHAIN DEVELOPMENT

Supply chain management services are delivered across industry sectors and provide expertise,
knowledge and resources in terms of personnel and supply chain tools. All services are targeted
at optimizing logistical operation in both process and strategy, and are aligned to the client‘s
commercial expectations.

The services are as follows:

 Strategic logistics consulting

 Lead logistics provider
 Consulting and providing transport optimization: Route-pro and Trans-Pro
 Consulting and providing supply chain design
 Consulting and providing transportation
 Engineering, optimization and re-engineering
 Implementation and project management
 Process management
 Outsourcing

SUPPLY CHAIN RE-ENGINEERING

Big Bazaar works with suppliers to review supply chain efficiencies. One of the main tasks is to
evaluate cost efficiency, to ensure that costs are being driven down throughout the contract
duration. Data analysis allows Big Bazaar to provide suppliers with ‗what if modeling‘ or the
impact of changing the business rule.
AFTER SALES OPTIMIZATION

Optimizing return logistics and spare parts logistics as well as maintenance and repair services.

DISTRIBUTION TOWAREHOUSE MANANGEMENT

Big Bazaar‘s distributions to warehouse solution are focused on helping retail outlets to create
efficient and flexible supply chains to deliver products to customers and with high level of
service.

These solutions are built from several core services including reverse logistics:

 Logistics network strategy

 Warehouse design and simulation
 Transport modeling.

TRANSPORTATION

Transportation is the most visible of all functions of logistics and high contributor to logistics
cost. We can see trucks, containers and wagonloads of material being moved from place to place
as an activity directly associated with trade ands business. We should also appreciate that this is
an activity that adds highest amount of cost to the activity of making inputs and outputs available
to consumers. Transportation function moves the product to meet customer expectation at
minimum cost. Transportation is one of the most visible elements of logistics operation.
Transportation provides 2 major functions: product movement and product storage
PRODUCT MOVEMENT

Whether the product is in the form of materials, components, assemblies, work-in process, or
finished goods, transportation is necessary to move it to neat stage of the manufacturing process
or physically closer to the ultimate consumer. A primary transportation function of product
movement is moving up and down the value chain. Since transportation utilizes temporal,
financial, and environmental resources, it important that items be moved only when it truly
enhances the product value. Transportation involves the use of temporal resources because
product is inaccessible during the transportation process. Such product, commonly referred to as
in-transit inventory, is becoming a significant consideration as a variety of supply chain
strategies such as just-in-time and quick response practices reduce manufacturing and
distribution center inventories.

Transportation uses financial resources because internal expenditures are necessary for private
fleets or external expenditures are required for commercial or public transportation.

The major objective is to move product from an origin location to a prescribed destination while
minimizing temporal, financial and environmental resource costs. Loss and damage expenses
must also be minimized. At the same time the movement must take place in such a manner that
meets customer demands regarding delivery performance and shipment information availability.

PRODUCT STORAGE

Temporary storage in stationary vehicles or vehicles kept moving on a circuitous route – product
storage is expensive in transport vehicle. But sometimes keeping overall cost in mind this is
adopted.

 When unloading and loading is more expensive than storage

 When storage space is limited. (situation when inventory levels are very high)
PRINCIPLES

There are two fundamental principles guiding transportation management and operation. They
are economy of scale and economy of distance.

ECONOMY OF SCALE refers to the characteristic that transportation cost per unit of weight
decreases when the size of the shipment increases.E.g. a truckload shipment coats less per kg
then less than truckload shipment. It also generally true those larger capacity transportation
vehicles such as rail or water are less expansive per unit of weight than smaller capacity vehicles
like motor or air. Transportation economics of scale exit because fixed expenses associated with
moving a load can be spread over the load‘s weight. The fixed expenses include administrative
costs of taking the order, time to position the vehicle for loading or unloading, invoicing and
equipment cost. These costs are fixed because they do not vary with shipment volume.

e.g. suppose the cost to administer a shipment is Rs.100 then the 1-kg shipment has a per unit of
weight coat of Rs.100 while the 1000 kg shipment has per unit of weight cost of Rs. 0.01. Thus,
it can be said that economy of scale exists for the 1000-kg shipment

ECONOMY OF DISTANCE refers to the characteristics that transportation cost per unit of
distance decreases as distance increases.
E.g. a shipment of 800 KM will cost less than two shipments (of the same combined weight) of
400 KM. transportation economy of distance is also referred to a se tapering principle since rates
or charges taper with distance. The rationale of distance economics is similar to that for
economics of scale.

Longer distances allow the fixed expenses to be spread over more KM, resulting in lower overall
per KM charge. These principles are important consideration when evaluating alternative
transportation strategies or operating practices. The objective is to maximize the size of load and
the distance that is shipped while still meeting customer service expectation.
TRANSPORTATION INFRASTRUCTURE

Transportation infrastructure consists of the rights-of-ways, vehicles, and carrier organizations

that offer transportation services on far-hire or internal basis. The nature of infrastructure also
determines a variety of legal and economic characteristics for each mode or multimodal system.
A lode identifies the basic transportation method or form.

Rail Network

Since olden times, railroads have handled the largest number of ton-miles. As a result of the
early establishment of a comprehensive rail network connecting almost all the cities and towns,
railways dominated the intercity freight tonnage till world war II and in some cases of Europe,
Asia and Africa they even connected the countries. This early superiority enables railways to
transport large shipments very economically.

MOTOR CARRIERS

Highway transportation has increased rapidly since the end of World War II. This is because
motor carrier industry results from door-to-door operating flexibility and speed of intercity
movement. They are even flexible because they can operate on each and every kind of roadways.
In comparison to railroads, motor carriers have relatively small fixed investment in terminal
facilities and operate on publicly maintained highways. Although the cost of license fees, user
fees, and tolls are considerable, these expenses are directly related to the number of over-the –
road units and KM operated. The variable cost per KM for motor carriers is high because a
separate per unit and driver are required for each trailer or combination of tandem trailers. Labor
requirements are also high because of driver safety restrictions and the need for substantial dock
labor. Motor carriers are beat suited to handle small shipments moving short distance.
Water Transportation

It is the oldest mode of transportation. First it was the sailing vessels, which was replaced by
steamboats in early1800‘s and by diesel power in the 1920‘s. Domestic water transportation –
involves the great lakes, canals, and navigable rivers. In every country, fewer system miles exist
for inland water than any other transportation mode.

The main advantage of water transportation is the capacity to move extremely large shipments.
Water transport employs 2 types of vessels. Deep-water vessels, which are generally designed
for ocean and great lakes use, and are restricted to deep-water ports for access, in contrast,
diesel-towed barges, which generally operate on rivers and canals, have considerably more
flexibility. Water transport ranks between rail and motor carrier in the fixed cost aspect.
Although water carriers must develop and operate their own terminals, the right-of-way is
developed and maintained by the government and results in moderate fixed costs as compared to
railways and highways

The main disadvantage of water transport is the limited range of operation and speed. Unless the
origin and destination are adjacent, supplement haul by rail or truck is required. The capability to
carry very high cargo at an external low variable cost places this mode of transit is secondary
consideration.

AIR TRANSPORT

Air transport is the newest and the latest utilized mode of transport. Its major advantage being its
speed, which is accompanied by high costs. A coast-to coast shipment via air requires only a few
hours contrast to days taken by other mean of transportation. The high cost of transport can be
traded off for high speed, which allows other elements of logistical design, such as warehousing,
inventory to be reduced or eliminated. But still air transport remains more of a potential
opportunity than a reality because it is very much underutilized.

The high cost of jet aircraft, coupled with erratic nature of freight demand, has limited the
assignment of dedicated planes to all-freight operations. However premium service started off
with documents and has moved onto large parcels, which is an ideal service for firm with a large
number of high-value products and time-sensitive service requirements.
FOR BIG BAZAAR
Big Bazaar uses all the modes of transportation that is
 Airways
 Roadways
 Waterways
 Rail freight

Big Bazaar has its own transportation vehicles for transportation on road. Once again the
geographical location and how fast the goods have to be delivered are the factors for the final
selection of modes of transportation. The concept of economies of scale and economics of
distance are both take into consideration in case of larger consignment where Big Bazaar
provides an appropriate logistical solution, which helps in reducing the overall cost for them.

INVENTORY MANAGEMENT AND WAREHOUSING

Inventory is an unused asset, which lies in stock without participating in value adding process.
Unused equipment, raw material, WIP and finished goods, consumables, spare parts, bought out
parts, tools and tackles, gauge and fixtures etc. In India 9 to 12 months of sales quantity lies in
the form of inventory [R/M, WIP, Bought out parts and finished goods] as against a few days in
japan and a month in the US and Europe. In our country inventory is always viewed as asset
[working capital], in fact, though it is called an asset, it is big liability.

Warehousing was a customer‘s function conventionally anywhere in the world. Customer to

protect himself from shortages at the time of inclement weather always used to store provisions
and other utilities in his house. Consumer‘s own stores provisions and other utilities in his house.
Consumer‘s own stores were underground cellars, smoke house to store variety of items. Poor
communication infrastructure was mainly the cause for this storage by customer. Producers and
tradesman conveniently shrugged off their responsibility for storage and passed it on the
customer who was left with no option. Traditional concept of warehouse as store or godown has
undergone major change now. Warehouse is considered a value adding facility now, playing a
remarkable role as a function of logistical management.
  Warehouse infrastructure network
 Warehouse management solution
 Inventory optimization
 Special warehouse solution
 Outsourcing projects

WAREHOUSE INFRASTRUCTURE NETWORKS

Big Bazaar warehouse service supports inbound logistics, distribution and aftermarket services in
a way that improves inventory management, reduces total operating costs and improving cycle
times.

Big Bazaars warehouse is fully integrated into the wider supply chain and meets the demand.
This encompasses the design implementation and operation for both dedicated and multi user
sites.

BENEFITS INCLUDE IMPROVEMENTS IN

 Customer satisfaction
 Stock accuracy
 Lead time
 Redundant stock costs
 Productivity responsiveness to a company‘s strategic needs

2.Warehouse management solutions

The warehouse management system (WMS) records all events and actions in the receipt,
handling and storage of products and orders in a warehouse environment. The WMS also
accurately records the location of inventory whilst stored in the warehouse.
3.Inventory Optimization

Trough effective inventory management, inefficiencies can be driven out of the supply chain,
overall costs reduced and high service levels achieved. They optimize inventory at a line-item
level at every stage of the supply chain.

Big Bazaar focuses on driving results in

 Suppliers management
 Expediting
 Order replenishment
 Demand forecasting
 Safety stock setting
 Order pipeline monitoring
 Excess stock management

Inventory optimization is supported by inventory management software that calculates ―line item
risk profiles‖ that measures the variability of demand and supply for each line item within a
customer‘s inventory.

CUSTOMER PERCEPTION MEASUREMENT

To succeed in any activites of business one has to always cater to and satisfy the needs of the
customer. To do so, it is essential for one to know how the customer thinks in order to meet his
needs in a more satisfying manner. Therefore, an important component of leading edge logistical
performance is the regular measurement of customer perception. Such measures can be obtained
through surveys or by systematic order follow up. These surveys can be company – or industry –
sponsored. Such surveys ask questions regarding the firm‘s and the competitor‘s performance in
general or for a specific order in particular. Most of the survey‘s incorporates measurement of
customer perceptions regarding availability , performance-cycle time, information availability,
problem resolution and product support. The survey may be developed and administered by the
firm itself or by consultants, delivery agents or industry organizations.
CHAPTER-5
Findings
 CHAPTER-5
Findings

Significant losses/damages during shipping

The next problem in setting up organized retail operations is that of supply chain logistics. India
lacks a strong supply chain when compared to Europe or the USA. The existing supply chain has
too many intermediaries: Typical supply chain looks like:- Manufacturer - National distributor
Regional distributor - Local wholesaler - Retailer -Consumer. This implies that global retail
chains will have to build a supply chain network from scratch. This might run foul with the
existing supply chain operators. In addition to fragmented supply chain, the trucking and
transportation system is antiquated. The concept of container trucks, automated warehousing is
yet to take root in India.

Inadequate infrastructure

The lack of proper infrastructure and distribution channels in the country results in inefficient
processes. This is a major hindrance for retailers as a non-efficient distribution channel is very
difficult to handle and can result in huge losses. Infrastructure does not have a strong base in
India. Urbanization and globalization are compelling companies to develop infrastructure
facilities.

The storage infrastructure, too, is severely restricted. In 2006, India had a total warehousing
capacity of 81 million tones. Like the rest of the infrastructure sector, warehousing is highly
fragmented and unorganized transportation, including railway systems, has to be more efficient.
Highways have to meet global standards. Airport capacities and power supply have to be
enhanced. Warehouse facilities and timely distribution are other areas of challenge. To fully
utilize India's potential in retail sector, these major obstacles have to be removed.

Almost 78% of total freight is transported by road.

Almost 78% of total freight is transported by road. But, according to the FICCI-E&Y retail
report, roads connect less than half of the half a million Indian villages. The normal distance
covered by trucks and trailers in India are 250-300 km a day, whereas the international norm is
600- 800 km a day. Most roads in India are designed to carry a maximum gross weight of 16.2
tones, which allows for a maximum loading of about 9 tones. This severely restricts the ability to
transport goods on larger vehicles.

Warehouses located far from city

Some of the warehouse are located in villages and are far from the city so it takes time for goods
to reach mall.

RECOMMENDATIONS

Improvement in supply chains: -

Big bazaar should use better techniques for improvising its supply chains. The organizational
structure and the business model of Wal-Mart are its winning- formula for some markets. But
this also dooms it to failure in others. The heart of the matter is high-volume-low-cost strategy,
which made it a success in cost-conscious smaller, everybody-knows-everybody cities in the US.
But this very strategy doomed it to failure in larger (anonymity, high consumerism) cities in the
US. A very high real estate cost in big cities was also detrimental to its strategy in such cities.

Warehouse location: -

Though it is a cost cutting formula of big bazaar, but now the Indian scenario has changed.
Though it has its own logistics called Future logistics, it should try some other ways to improve
its in housing of goods. Many a times it happens that goods are not available to customers as the
time taken between ordering and processing is very long.

Improvement in packaging: -

Big Bazaar should ask suppliers to send goods with good packaging so that losses due to
breakage should be avoided. Moreover its own handling and carrying should be improved.
Infrastructure

Internal warehouse of big bazaar has very low capacity. Its completely hoch- poch. Due to
insufficient space of storage losses are very frequent. Shop lifting especially internal is very high.
It should allow its suppliers to have a track of their goods so that when stock finishes they will
automatically supply.

Use of RayMedi Head Quarter

RayMedi HQ is designed to manage your chain of shops more easily. RayMedi HQ is a web-
based, easy-to-use software, which gives you more control in managing your chain of shops. It
works seamlessly with your individual shops data (RayMedi RPOS/RE/DE data) and gives you a
consolidated and centralized way of managing your chain bett RayMedi HQ gives you the Real-
time business status at HQ From about every point of sale. From the head office, you can
monitor sales & inventory position at each one of your store. The software helps you in
consolidating the data from your various branches into one system and do an integrated analysis
of sales, inventory and purchase. RayMedi HQ primarily focuses on managing your branch wide
sales, purchase, inventory, receivables and profits. It helps in controlling expenses, decreasing
costs and increasing your profits.
DATA ANALYSIS AND
INTERPRETATION
Data analysis and interpretation

The data collected through the questionnaire are analyzed to know about the respondents
opinions about various particulars asked in the questionnaire were through phone and emails.

Questionnaire was entered into spreadsheet and the data has been interpreted. The questionnaire
comprises of fourteen questions with subparts for each. The topics covered are with decisions of
each operational area, employee numbers of each firm, profitable area in operation, catering
location, service offering, organizational effectiveness, inventory, location, product availability
and customer satisfaction.

a) Which are the logistics services organizations offers?

Sr.no Service Percentage

01 Freight 100
02 Warehousing 89
03 Cross docking 88
04 Network design 66
05 Value adding 98

Chart-1 service offer

The pie chart above shows the service offer of each organization. The chart shows that 100% of
the respondents provide freight service and almost 90% provide warehousing and cross docking.
Only 66% were providing service of network design. Other service includes value adding, which
represents 98% of the sample. It includes packaging, labeling etc.
 b) Operating with other logistical provides and reasons for decisions

Table – 2 operate with logistical provides

Sr. no Decision Percentage

01 Operational satiability 11
02 Cast effectiveness 10
03 Customer needs 36
04 Other 96

Chart-2 operate with logistical providers

The pie chart above shows the operational decisions and reasons for operations with other
logistical providers. The chart shows that 96% of the respondents operate with other service
providers for different reasons like coordination, clearance, bulk operations etc. almost 36% have
operations with other providers as per customer needs. Only 11% and 10% were providing
service along with other providers for the purpose of operational stability and cost effectiveness
respectively. It is stated that 96% of organizations operate with other logistical providers and
remaining 4% as stand aloe‘s what is the made of decisions regarding the operations?

Table-3 mode of decision

Sr. no Operational decisions Percentage

01 Strategic 37
02 Tactical 88
03 Operational 63

The pie chart above shows the mode of decisions regarding the operations. The pie chart shows
88% of organizations take tactical decisions followed by 63% with operational decisions and
37% strategic decisions. Most of the organizations have a mixture of all the decisions in their
day-to-day as well as in long and short plans
 c) Which is the area of the activity, that organizations feel best in their service?

Table-4 best activity

Sr. no. Service Percentage

01 Freight
02 Warehousing
03 Cross docking
04 Networking design
05 Value adding

The pie chart above shows the best activity, which organizations feel in their operations. The pie
chart shows % of organizations have freight in the predominant area, followed by % of
warehousing. Another significant area is cross docking with % as best activity. There is only a
minor activity based on network design with % in pie graph. Most of the organizations have a
mixture of all the activities in their day to day and % of organization says other activities bring
in more revenue and the best of their activities, which includes packaging, labeling etc.

d) Number of employees in each type of the service rendered of the organizations.

Sr. no. Department in Number of people Percentage

organization in each
01 Top management 45 11
02 Operations 46 11
03 Account/finance 45 11
04 Marketing 51 09
05 Human resources 37 13
06 Documentations/others 184 45

Table – 5i employees
Sr. no. Department in Number of people Percentage
organization in each
01 Top management 03 14
02 Operations 04 14
03 Account/finance 04 18
04 Marketing 03 18
05 Human resources 0 0
06 Documentations/others 08 36

Table – 5ii employees

The line charts above shows the compression of employees in each functional division of
organization with big bazaar, Mysore. The line chart shows around 14 % of people belong to top
management and industry standards has 11%, followed by 18% for

i) Industry category. This can be achieved with more modern equipment‘s and proper
guidance to employees and the rating can go high to excellent service.
ii) Pricing of the products is satisfactory, which organization can further enhance with
proper management. Present employees strength is satisfactory compared to other
organization where the firm has lesser employees compared to other organization.
iii) Decision making is excellent for organization with respect to other organization in the
industry
iv) Operation with other logistical providers should be given more preferences to achieve
cost effectiveness.
v) Tactical decision are mostly followed by organization followed by operational and
few strategically.
Conclusion
Conclusion
Big bazaar is having its own logistics called future logistics but in near future to cope up with the
changes it have to do a lot. the logistics companies at present provide services from
transportation to warehousing and inventory management. But, in the near future, they will have
to expand their products baskets to include new value added services, such as packaging,
labeling and reverse logistics.
The biggest challenge that faces these companies is that they should quickly imbibe latest
technologies, such as GPC/GIS tracing of consignment, and uncork new services to cater to
corporate seeking to outsource their logistics needs. Also, the government should come out with
a sound policy that facilitates the operations of the logistics companies
BIBLIOGRAPHY
BIBLIOGRAPHY

BOOKS

 Kishore Biyani (2007), It Happened In India (1 1 ' Edition), Rupa Publications.

 Stephen Covey (1994), The Seven Habits Of Highly Effective People (6' Edition),
Simon & Schuster UK Ltd.

 Anthony Robbins (1992), Awaken The Giant Within You (I" Edition), Simon &
Schuster UK Ltd.

 Robbins, Stephen P. (2004), Organizational Behavior OW Edition),

Prentice-Hall India

Websites
 www.pantaloon.com
 www.futuregroup.com