21-12-2012, 03:07 PM
Study of Logistics and Distribution in “Big Bazaar”stores
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Big bazzar is a part of future group so most of its logisticsand distribution is done by future logistics
Logistics
• Logistics is the art and science of managing andcontrolling the flow of goods , energy, information andother resources like products, services and people fromthe source of production to the marketplace.
Marketplace
• It’s Important to have professional logistical supportlogistical
• The operating responsibility of logistics is thegeographical repositioning of raw materials, work inprocess and finished inventories where required at thelowest cost possible
Distribution
Distribution is one of the 4 aspects of marketing.marketing.
• Traditionally, distribution has been seen as dealing withhow to get the product or service to the customer.
• Distribution is done by distributor who is the middleman between the
manufacturer and retailer themanufacturer and retailer
Supply chain, is a coordinated system of organizations,people, activities, information and resources involved inmoving a product or service in physical or virtual manner from supplier to customer.• Supply chain activities transform raw materials andcomponents into a finished product that is delivered to theend customer.
Warehouses
Warehouses of big bazzar are located at Boomanahalliand Hasketta. Suppliers of various products towarehouses from warehouses goods supplied to internalwarehouses.In some cases as in food items vendors directly sell toretailers.
OBSERVATIONS
There were various observations made from the time Ientered the store. They can be summed up as follows:Verticals inside the store relates to each category of productFood Bazaar Depot- booksM-bazaar
Electronic Bazaar Furniture Bazaar Footwear Bazaar
Trolleys are not easily available, especially on other thanground floor.
•Little attention to cleanliness. Dust on shelves as well assome product items.
•In-house packaging not efficiently done.
•Crowded store interiors. Items are arranged in a clutteredway. Tried to stock maximum number in limited area.
•Sign boards are not prominent. Lack of direction createsconfusion.
•Family crowd is evident. Youth comprises of only around10% of the crowd.
•Food Bazaar very efficiently managed. It is a bit over-staffed but layout is very good. Shelf space is used verywell to stock products with clear distinction.
Supply chain
Supply in big bazzar occurs by two methods:
Suppliers Warehouse InternalWarehouseThis type of supply chain is used in crockery items andother durable goods.2.Vendors Big bazzar This type of supply chain is used in food items and other fmcgs.
PROBLEMS AT BIG BAZZARLOGISTICS
Significant losses/damages during shipping
The next problem in setting up organized retail operationsis that of supply chain logistics. India lacks a strong supplychain when compared to Europe or the USA. The existingsupply chain has too many intermediaries: Typical supplychain looks like:- Manufacturer - National distributor -
Regional distributor - Local wholesaler - Retailer -Consumer. This implies that global retail chains will haveto build a supply chain network from scratch. This mightrun foul with the existing supply chain operators. Inaddition to fragmented supply chain, the trucking andtransportation system is antiquated. The concept of container trucks, automated warehousing is yet to takeroot in India
Inadequate infrastructure
The lack of proper infrastructure and distribution channelsin the country results in inefficient processes. This is amajor hindrance for retailers as a non-efficient distributionchannel is very difficult to handle and can result in hugelosses. Infrastructure does not have a strong base in India.Urbanization and globalization are compelling companiesto develop infrastructure facilities.The storage infrastructure, too, is severely restricted. In2006, India had a total warehousing capacity of 81 milliontonne. Like the rest of the infrastructure sector,warehousing is highly fragmented and unorganisedTransportation, including railway systems, has to be moreefficient. Highways have to meet global standards. Airportcapacities and power supply have to be enhanced.Warehouse facilities and timely distribution are other areasof challenge. To fully utilize India's potential in retailsector, 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 connectless than half of the half a million Indian villages. Thenormal distance covered by trucks and trailers in India are250-300 km a day, whereas the international norm is 600-800 km a day. Most roads in India are designed to carry amaximum gross weight of 16.2 tonnes, which allows for amaximum loading of about 9 tonnes. This severelyrestricts 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.