You are in trouble if you have to keep telling customers, "I'm sorry
we're out of that size. May we order it for you?" Even though the shirts are
selling briskly, you will lose customers if you don't have an item in stock.
When the customer spends, you have got to be ready with the goods. This is
what inventory management is all about.
In many retail and wholesale operations, the single largest asset is
inventory. Control of this investment is vital. It will eliminate a number of
the problems associated with capital shortages and will also provide capital
to permit expansion of operations for increased sales and profit.
Inventory Management
Inventory Replenishment
Big Bazaar generally deals in national level brands like Lee, Levis etc, Other
than this it also deals in some Private label brands DJ&C in apparel, KORIA
in electronics etc. Then we asked about the product categories , that are
:FMCG, FOOD & NON- FOOD junction , Staple items , fruits &
vegetables , fashion & apparels ,chill section , home decorator , footwear ,
book zone, CDs etc
Considering all the facts which we have studied, and seeing the strategic
location of Big Bazaar, we can say, that the location is the best, it could have
In............ Firstly it is in the heart of the city. Secondly it is in a shopping
Mall, which has all types of customers coming in and there, footfalls, being
easily converted into sale, by the efficient employees of big bazaar.
Moreover it is at the place where traffic inception is always high. It is near
station, which gives it another competitive advantage over its competitors.
Transportation is also good, as one can easily reach big bazaar through auto,
private vehicles etc.
Then coming to how the store manager decides the level of inventory, the
store manager inspects the stocks time to time and also the demands of
customers. Manager maintains the Stock – in & Stock – out, so that he can
decide the level of inventory. He, also has seen the trends in the requirement
of inventories, as for eg. he told that apparels are ordered approximately
after 45 days. For every sample of clothes they have a back up of 10 pieces.
However in case, if more number of pieces are required, they first ask other
big bazaar location such as that of Patia etc. but if, even then they fail to
meet the demands of customers, they go for “Transfer of Interest”. In this
they prefer sending the customers to pantaloons, as it is also of Future
Group, instead of losing them.
He also told that recently big bazaar has undergone tremendous
technological advancement, as its supply chain has become completely
computerized. Once the product is sold, automatically, the computer sends
the request for back up.
The manager in charge told us that there is no such reorder points. Orders
are placed as and when required. However he told that there are no such
measures, except in a few items. Previously apparels were ordered once
there stock fell below 4 per item piece. For general merchandise, which
includes, food and non-food items, it was 7 days. However they always keep
in mind the transit time of 2 days. Vegetables are taken on a daily basis,
form local vendors.
Uncertain demands of customers
Perishable goods like vegetables are maintained with great care. Vegetables
are bought on daily basis on the basis of demand, and seasonal item. It is
also ascertained that damaged vegetables are sold at a low cost to some other
channels. Whereas imperishable goods like utensils and staple goods and
electronic items are brought from ............. The distribution channel used in
supply chain process is operated by Central Distribution Channel, which is
located in ……... From there goods are supplied to every Big Bazaar Store.
The modes of transportation which are used in supply chain process are
Truck & Rails, but in case of emergency, flights are also being used. The
transportation is outsourced. Mainly the carriers for Big Bazaar are Quick &
Safe, Gati, Deluxe Roadways, and TNT.
Since the store is fully computerized, in the sense, like billing, inventory
management, electronic equipments near the gates, to check thieves, it has to
take proper care of machines. Food items are to be regularly checked.
Inventory room has to be checked regularly for any sort of leakages. Air-
conditioners have to be regularly checked. Electrical wirings have to be
closely monitored. Short circuit cameras have to be checked regularly as it is
a major factor in security arrangement.
Inventory Management
Quality of Food-items
Food items are kept in a separate place, both in inventory and at store. Food
items which are required to be kept at cold places, like cold-drinks, cheese,
milk products, milk, fruits, etc. are kept in refrigerators, whereas those
which can be kept anyway, are kept on proper shelves