Study Of Supply Chain At Big Basket 5yh5g

STUDY OF SUPPLY CHAIN AT BIG BASKET Presented By: Group 6 Names of Student

Roll No.

Pratul Batra

161338

Shailendra Garg

161349

Vardhan Shah

161364

Vimal Pokal

161365

Yash Shah

161367

ABOUT • Founded in 2011 by Five who were experienced in the business of retail • It has 19000 products across 1000 categories • It differentiates itself with highly efficient inventory management system and strong relations with suppliers • Their recent focus on private label brands • Classified its services into 4 categories: Tier-1 cities where they provide full platform service, Tier-2 cities, Express/specialty, B2B or kirana • Provides most convenient way of delivery through customer’s preferred time slot • Order fill rate for home deliveries: 99.5% • On time delivery: 99% • Items in stock: 96%

ABOUT • Their main vendors are P&G, HUL, small mandi vendors and kirana stores etc. • Hyper local strategy to serve express delivery customers. • Every city has storage facility by the name of dark storage. • Refrigerated vans are used to transfer goods between dark storage and warehouse , customer deliveries as well • They also use various data analysis tools to forecast the demand especially for perishable products • Have presence in 25 cities. • They have 25 warehouses and 63 storage facilities • Handles 35000 orders everyday

Supply chain process of BB • Vendors such as farmers (growing fruits and vegetables) and FMCG companies (P&G, HUL) Procurement supplying products to Big Basket

Storage

• Storage of products in Warehouses/Distribution Centers/Fulfilment Centers • Each city has a separate Distribution center

Logistics

• Pick-up from Vendors i.e. First mile delivery • Last Mile Delivery to customers and retailers

Drivers of supply chain 1. Facility • Easy and relaxed way of shopping • Very convenient as well for perishable items • On-time delivery and easy navigation through website 2. Information • Two types: Data entry operators to regional business head and others are delivery boys, segregators, pickers etc. • They all work in tandem to make the process of information flow efficient. 3. Sourcing & Inventory • They buy in bulk from mandis to achieve economies of scale • They also have tie-ups with mandis • They keep 7 days of safety stock • They use single period inventory model

Drivers of supply chain 4. Pricing • Competitive pricing • They use farm to home model, prices are fixed in procurement • They use coupons, discounts and product bundling techniques to increase their sales. 5. Transportation • Uses both in-house and third party logistics • They use their mini trucks to deliver products to customers through route optimization. They have five types of delivery  Full service delivery  Express delivery  Kirana model  Specialty delivery  Horeca

Supply Contracts • Type of agreement between a seller and a buyer in which a seller promises to supply all the needed specified goods and services to a buyer over a certain time and at a fixed price.  Supply Contract can include the following: • Pricing and volume discounts. • Minimum and maximum purchase quantities. • Delivery lead times. • Product or material quality. • Product return policies.

Customer value dimensions • Customer value dimension generally has four parts: revenue, loyalty, sentiment, and engagement.  Big Basket Customer value dimensions FOR INBOUND

• There are many SKUs in vegetable department which are directly procured from the farmers • This helps Big Basket to be price competitive in the retail industry

• The farmers prefer to give their products to BigBasket because of the following reasons:• They can avoid going to the Sabji Mandi. • Farmers do not get the correct for their products from the commission agents • The BigBasket pays the farmers within 3 days after the invoice is generated

• Exotic products are present in the inventory of BigBasket • Cold storage in the inventory helps keep up the quality of products • Big Basket has a software which automatically generates the list of items that needs to be ordered to keep up the inventory

Customer value dimensions • For Outbound • 4 time slots for delivery • Multiple payment options • • • •

Cash Credit/ Debit card Sudexo Credit and debit option

• The company will pay 10% of the order value if the delivery doesn’t happen on time • If the customer asks for a return of product then Bigbasket will not any question • “You Order; We deliver” – Big basket believes in the philosophy that they shall deliver whatever is ordered by the customer • The customer will get 50% refund if all items are not delivered

Role of IT • BigBasket has both android and iOS mobile apps which allow customers to order groceries on the go. • Features such as ―Smart-basket, which predicts what a customer needs more often and reduces the time-to-order to ―within 5 minutes. • The whole industry has developed because of the development of technology. Technology has provided the customer and firm a better advantage. Systems are updated on a regular basis to be kept updated with the going trends in the market. • One of the most crucial software that they operate is called Locus. This software does the work of allocating the delivery vans to a particular route (to achieve efficiency). With the help of its sophisticated algorithm the locus software is capable of providing an optimized route for every delivery van. • BigBasket has their ERP installed. It is called BB utilities wherein all the data can be accessed.