Supply Chain Management Ppt.pptx

SUPPLY CHAIN MANAGEMENT

Presented By:Harshika Rohit Srivastav

ABOUT BIGBASKET.COM • Bigbasket.com is India’s largest online food and grocery store with over 18,000 products and over a 1000 brand. • Founded in the year December 2011 by the team of five people Hari Menon, Vipul Parekh, Abhinay Choudhari, VS Sudhakar, VS Ramesh • Guarantee on time delivery and the best quality • Company has currently 70k+ customers, Banglore being the headquarters •

They are now operational in 23+ cities which include six metros, and are in plan to expand to 50 more tier two cities soon

• They will also be opening 8 large warehouses in metro cities. Use of data analytics is helping them to avoid wastage as items are perishable. Big Basket processes 35000+ orders every day and operates in 23+ cities nation wide

FACTS ABOUT ONLINE GROCERY

• India is the sixth largest grocery market worldwide, however shopping for grocery online is at very nascent stage and is still overcoming operational and economical hurdles.

• Online grocery retailing is a tough segment to crack largely due to the perishable nature of products it offers

CHALLENGES FACED BY ONLINE GROCERY RETAILERS 1.) Supply Chain Management

• Procurement of quality products • E-grocers are savaged by high rentals, inventory costs, and difficulty in holding perishable products due to poor condition of warehouses

2.) Logistics Management • Huge investments are required to build cold storages and distribution facilities to stock perishable products

• Operations are hampered by poor condition of roads – 43% of India’s roads are unsuitable for vehicles along with multiple checkpoints that slow down traffic • Dynamic route planning is imperative to avoid traffic congestions for on-time delivery

WHAT MAKES BIG BASKET INDIA’S LARGEST GROCERY RETAILER

SUPPLY CHAIN PROCESS OF BIGBASKET • Currently, they are operating 25 warehouses and 63 storage facilities • Company is targeting revenues of Rs 1800 crores in FY17 WAREHOUSE

FRONT END They Take order online, Customer order through phone or website. (User Interface)

Picking up the products get happened in this stage. Scanner is used for picking up the right product.

HUB Segregation and consolidation happened. Van routing and tracking for effectively deliver

DELIVER VAN Tabs for order deliver and receipt confirmation

EARLIER STRATEGY JUST-IN-TIME

• Purchased-to-order • Directly picks up the item from the retailer, and directly delivers it to the customer • Decrease waste • Reduces the inventory cost

EARLIER STRATEGY JUST-IN-TIME • Sources vegetables and fruits i. major producing locations

ii. ‘mandis’ (markets) iii. local farmers

• 60minutes express delivery Delyver(strong two wheeler network) which delivers (rice, lentils, cooking oil(basic item) • 90-minute express delivery Dervice to cater to customers ordering perishable products such as milk, fruits and vegetables

INVENTORY MODEL

They moved to an inventory model considering their expansion and large base of consumers

INVENTORY MODEL • Big Basket follows inventory model currently • Warehouses to stock products which they purchase from different vendors. Their vendors include big firms like P&G, HUL etc. along with small mandi vendors and kirana shops

• Procurement totally depends on type of products and from where they have to be sourced. To maintain margins, generally it is preferred to procure items from farmers directly. The whole chain starts at early morning and they have proper team who benchmarks different prices, so that procurement could be done efficiently considering cost and time • After getting materials from their vendors, it is stored in warehouses (warehouses cater to cities within KMs range of 250–300) where packing of items is done

MAJOR POINTS OF SUPPLY CHAIN PROCESS OF BIG BASKET: • Delivery vans Refrigerated vans(Temperature control) Dark storage where they store materials before dispatching to customers(facilities get a direct feed

from warehouses) • Use of data analytics is helping them to avoid wastage as items are perishable • Big Basket processes 35000+ orders every day • And operates in 23+ cities nation wide

HUB AND SPOKE MODEL FOR DISTRIBUTION • Wholesalers deliver goods to BigBasket’s warehouses • Ware houses act as the hubs where the orders are picked and packed, and the delivery routes of the vans are the spokes that connect to the customer homes • Perishables are only warehoused for a matter of hours and in some cases it’s 24 hours from farm to fridge

“ON-TIME” DELIVERY • BigBasket handles 1,000+ orders a day in Bangalore, and 300-500 orders a day in Mumbai and Hyderabad

• Banks on technology driven solutions to track everything from the time an order is placed to delivery

• Delivery vans are specially designed i. low cost ii. temperature controlled vehicles

iii. freezing and chilling chamber so that freshness of the frozen products is not lost till they reach the customer’s doorstep

ASSETTRACKR’S VEHICLE TRACKING SOLUTION TO OPTIMIZE “ON-TIME” DELIVERY • BigBasket uses AssetTrackr RestAPI interface to tightly integrate with their ERP system and handle all movement of trucks and delivery vehicles, notification to customers on estimated

delivery times

PRESENT SCENARIO- HYPER-LOCAL STRATEGY,

• Hyper-local strategy, wherein, it has joined hands with more than 1,800

neighbourhood grocery stores across India to deliver goods within an hour • Looking for the current scenario – BigBasket now processes almost 20,000 orders a

day, with the involvement of 2000 team members

NEW STRATEGY • Grocery e-tailer BigBasket is upping its game with heavy investments into its fresh produce and

staples supply chain, as it prepares to take on global giant Amazon which recently received the DIPP nod for FDI in food retail.

• The company is also making significant investments to build the supply chain of its private labels (food) while gearing up to launch its fifth private label brand, GoodDiet

REFERENCES • article:build-online-grocery-website-similar-to-bigbasket.html. (2015, november 25). retrieved 10 13, 2017, from angularminds: https://www.angularminds.com/blog/article/build-online-

grocery-website-similar-to-bigbasket.html • http://www.thehindubusinessline.com/companies/bigbasket-invests-heavily-in-supply-chainsof-fresh-produce-private-labels-to-take-on-amazon/article9783971.ece • govind, d. (2016, 10 13). live mint e-paper. retrieved 10 13, 2017, from bigbasket uses assettrackr’s

vehicle-racking-solution-tooptimize-companiesstrategy

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“ontime”delivery:http://www.livemint.com/companies/hycjxkkeqbyqxxnbwrbywi/bigbasketdelivering-the-goods.html

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http://blog.assettrackr.com/bigbasket-uses-assettrackrs-tracking-solution/

REFERENCES • http://www.digitalvidya.com/blog/case-study-bigbasket-online-grocery-marketplace-digital-marketing/ • https://www.bigbasket.com/ • http://www.livemint.com/Companies/hycJXKKEQbyqxxnbwrbywI/Bigbasket-Delivering-the-goods.html

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