St.

Joseph`s Evening College, Bengaluru-

560025
(Autonomous, Affiliated to Bangalore
University)
Department of Business Administration

“A study on customer satisfaction towards service quality provided at M.N.

Chemicals Ltd.”
(A report submitted in partial fulfilment of the requirements for the Degree of
Bachelor of Business Administration in St. Joseph`s Evening College)

Submitted to
Department of Business Administration
St. Joseph`s Evening College, Bengaluru

Submitted by
Prem Kumar K
Registration No.: 20SJE825
2020-2023

Under the guidance of

Dr. Kanishka K
St. Joseph`s Evening College
Museum Road, Bengaluru

1
 Student declaration

I hereby declare that this project entitled “A study on Global supply chain on Management Lulu
Hypermart ” was prepared by me during the year 2023 and submitted in partial fulfilment of the
requirement for the degree of the BBA from St. Joseph`s Evening College, Bangalore.
This project work is original and not submitted earlier for the award of any degree/diploma or
associate ship of any other University/ Institution.

Prem Kumar K
Register No: 20SJE825

2
 Acknowledgement

I am thankful to “Lulu Hypermart” for giving me an opportunity to do a research project on their

esteemed firm.
I would like to thank Dr. Paul Newman. K, Principal of St. Joseph`s Evening College (Autonomous).
Bengaluru for acting as a constant source of inspiration to me.
I would like to express my sincere gratitude to my HOD Dr. Kanishka. K (Department of Business
Administration) and also for guiding, encouraging me throughout the project with wonderful inputs.
And also, I would like to extend my gratitude to all faculty members Mr. Ebenezer Sam, Mrs. Ashly
Joseph, Mrs. Tara. T for their help and support.
Last but not the least I would like to thank my parents, family members and my friends for their
everlasting love and support.

Prem Kumar K

3
 TABLE OF CONTENTS

CONTEXT PAGE NUMBERS

5
INTRODUCTION

26
REVIEW OF LITERATURE

30
RESEARCH DESIGN

39
DATA ANALYSIS AND INTEPRETATION

78
SUMMARY OF FINDING

80
SUGGESTIONS AND RECOMMENDATIONS

82
CONCLUSION

4
 CHAPTER l
INTRODUCTION

5
1.1. INTRODUCTION TO THE SUPPLY CHAIN MANAGEMENT

A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished products, and the
distribution of these finished products to customers. Supply chains exist in both service and manufacturing
organizations, although the complexity of the chain may vary greatly from industry to industry and firm to
firm.

Supply chain management is typically viewed to lie between fully vertically integrated firms, where
the entire material flow is owned by a single firm and those where each channel member operates
independently. Therefore coordination between the various players in the chain is key in its effective
management. Cooper and fllram [1993] compare supply chain management to a well-balanced and well-
practiced relay team. Such a team is more competitive when each player knows how to be positioned for the
hand-off. The relationships are the strongest between players who directly pass the baton (stick), but the
entire team needs to make a coordinated effort to win the race.

Below is an example of a very simple supply chain for a single product, where raw material is
procured from vendors, transformed into finished goods in a single step, and then transported to distribution
centers, and ultimately, customers. Realistic supply chains have multiple end products with shared
components, facilities and capacities. The flow of materials is not always along an arborescent network,
various modes of transportation may be considered, and the bill of materials for the end items may be both
deep and large.

To simplify the concept, supply chain management can be defined as a loop: it starts with the
customer and ends with the customer. All materials, finished products, information, and even all transactions
flow through the loop.
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 However, supply chain management can be a very difficult task because in the reality, the supply
chain is a complex and dynamic network of facilities and organizations with different, conflicting objectives.

Supply chains exist in both service and manufacturing organizations, although the complexity of the
chain may vary greatly from industry to industry and firm to firm.

Unlike commercial manufacturing supplies, services such as clinical supplies planning are very
dynamic and can often have last minute changes. Availability of patient kit when patient arrives at
investigator site is very important for clinical trial success. This results in overproduction of drug products to
take care of last minute change in demand. R&D manufacturing is very expensive and overproduction of
patient kits adds significant cost to the total cost of clinical trials. An integrated supply chain can reduce the
overproduction of drug products by efficient demand management, planning, and inventory management.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations

along the supply chain operated independently. These organizations have their own objectives and these are
often conflicting. Marketing's objective of high customer service and maximum sales dollars conflict with
manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput
and lower costs with little consideration for the impact on inventory levels and distribution capabilities.
Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The
result of these factors is that there is not a single, integrated plan for the organization---there were as many
plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be
integrated together. Supply chain management is a strategy through which such integration can be achieved.

1.1.1. IMPLICATIONS OF SCM ON LOGISTIC MANAGEMENT

The challenge of integrating and coordinating the flow of materials from multitude of suppliers,
including offshore, and similarly managing the distribution of the finished product by way of multiple
intermediaries.
Achieving cost reduction or profit improvement at the expense of their supply chain partners does not
make companies more competitive.

Transferring cost upstream or downstream leads to “logistics myopia” as all costs ultimately will
make way to the final market place to be reflected in the price paid by the end user.
Therefore, the leading edge companies seek to make the supply chain as a hole more competitive
through the value it adds and the cost it reduces overall.

Thus today the real competition is not the companies against the companies but rather supply chain
against supply chain.

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1.1.2. DEFINITIONS

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the
operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and
finished goods from point-of-origin to point-of-consumption.

According to the Council of Supply Chain Management Professionals (CSCMP),

“A professional association that developed a definition in 2004, Supply Chain Management “encompasses
the planning and management of all activities involved in sourcing and procurement, conversion, and all
logistics management activities”. Importantly, it also includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence,
Supply Chain Management integrates supply and demand management within and across companies.

According to Ganeshan & Harrison (2001)

Supply Chain Management is a “systems approach to managing the entire flow of information,
materials, and services from raw materials suppliers through factories and warehouses to the end customer.”
Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring
events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be
created and solutions can be planned.

1.1.3. COMPONENTS OF SUPPLY CHAIN MANAGEMENT

The following are the five basic components of Supply Chain Management:
1. Plan:-

This is the strategic portion of SCM. You need a strategy for managing all the resources that go
toward meeting customer demand for your product or service. A big piece of planning is developing a set
of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value
to customers.
2. Source:-
Choose the suppliers that will deliver the goods and services you need to create your product.
Develop a set of pricing, delivery and payment processes with suppliers and create metrics for
monitoring and improving the relationships. And put together processes for managing the inventory of

8
goods and services

9
 you receive from suppliers, including receiving shipments, verifying them, transferring them to your
manufacturing facilities and authorizing supplier payments.

3. Make:-
This is the manufacturing step. Schedule the activities necessary for production, testing, packaging
and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality
levels, production output and worker productivity.
4. Deliver:-
This is the part that many insiders refer to as logistics. Coordinate the receipt of orders from
customers, develop a network of warehouses, pick carriers to get products to customers and set up an
invoicing system to receive payments.
5. Return:-
The problem part of the supply chain. Create a network for receiving defective and excess products
back from customers and supporting customers who have problems with delivered products.

1.1.4. OBJECTIVES/NEED FOR SCM

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations

along the supply chain operated independently. These organizations have their own objectives and these are
often conflicting.
Marketing's objective of high customer service and maximum sales dollars conflict with
manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput
and lower costs with little consideration for the impact on inventory levels and distribution capabilities.
Purchasing contracts are often negotiated with very little information beyond historical buying patterns.

The result of these factors is that there is not a single, integrated plan for the organization---there
were as many plans as businesses. Clearly, there is a need for a mechanism through which these different
functions can be integrated together. Supply chain management is a strategy through which such integration
can be achieved.

Moreover, shortened product life cycles, increased competition, and heightened expectations of
customers have forced many leading edge companies to move from physical logistic management towards
more advanced supply chain management. Additionally, in recent years it has become clear that many

10
companies have reduced their manufacturing costs as much as it is practically possible. Therefore, in many
cases, the only possible way to further reduce costs and lead times is with effective supply chain management.

In addition to cost reduction, the supply chain management approach also facilitates customer service
improvements. It enables the management of:

 inventories,
 transportation systems and
 whole distribution networks

so that organizations are able to meet or even exceed their customers' expectations.

The major objective of supply chain management is to reduce or eliminate the buffers of inventory that
exists between originations in chain through the sharing of information on demand and current stock levels.

Broadly, an organization needs an efficient and proper supply chain management system so that the
following strategic and competitive areas can be used to their full advantage if a supply chain management
system is properly implemented.

1. Fulfillment of raw materials:

Ensuring the right quantity of parts for production or products for sale arrive at the right time. This is
enabled through efficient communication, ensuring that orders are placed with the appropriate amount of
time available to be filled. The supply chain management system also allows a company to constantly see
what is on stock and making sure that the right quantities are ordered to replace stock.

2. Logistics:

The cost of transporting materials as low as possible consistent with safe and reliable delivery. Here
the supply chain management system enables a company to have constant contact with its distribution team,
which could consist of trucks, trains, or any other mode of transportation. The system can allow the company
to track where the required materials are at all times. As well, it may be cost effective to share transportation
costs with a partner company if shipments are not large enough to fill a whole truck and this again, allows
the company to make this decision.

3. Smooth Production:

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 Ensuring production lines function smoothly because high-quality parts are available when needed.
Production can run smoothly as a result of fulfillment and logistics being implemented correctly. If the
correct quantity is not ordered and delivered at the requested time, production will be halted, but having an
effective supply chain management system in place will ensure that production can always run smoothly
without delays due to ordering and transportation.

4. Increase in Revenue & profit:

Ensuring no sales is lost because shelves are empty. Managing the supply chain improves a company
flexibility to respond to unforeseen changes in demand and supply. Because of this, a company has the
ability to produce goods at lower prices and distribute them to consumers quicker then companies without
supply chain management thus increasing the overall profit.

As Lulu Hypermarket sells a wide range of products, each of the categories requires effective supply chain system. Digital
products, fashion and lifestyle products, grocery and fresh food products, and home décor and household products have
certain special characteristics that lead to the differences in the process of providing their continuous supply.

Lulu Hypermarket needs a “robust logistics and supply chain management network” ensure its sustainability and
competitiveness on the market of food retail through focusing on quality and timely supply of local and imported products
(Hajjar and Sweeney 9). The United Arab Emirates is considered a leader in optimizing supply chain, and Lulu
Hypermarket can be regarded as one of the pioneers in establishing an efficacious food supply chain in GCC. The
Company pays much attention and invests much money in logistics

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5. Reduction in Costs:

Keeping the cost of purchased parts and products at acceptable levels. Supply chain management
reduces costs by increasing inventory turnover on the shop floor and in the warehouse controlling the quality
of goods thus reducing internal and external failure costs and working with suppliers to produce the most
cost efficient means of manufacturing a product.

6. Mutual Success:

Among supply chain partners ensures mutual success. Collaborative planning, forecasting and
replenishment (CPFR) is a longer-term commitment, joint work on quality, and support by the buyer of the
supplier‟s managerial, technological, and capacity development. This relationship allows a company to have
access to current, reliable information, obtain lower inventory levels, cut lead times, enhance product quality,
improve forecasting accuracy and ultimately improve customer service and overall profits.
The suppliers also benefit from the cooperative relationship through increased buyer input from
suggestions on improving the quality and costs and though shared savings. Consumers can benefit as well
through higher quality goods provided at a lower cost.

1.2. INDUSTRY PROFILE

INTRODUCTION

Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of
several new players. It accounts for over 10% of the country‟s gross domestic product (GDP) and around
eight% of the employment. India is the world‟s fifth-largest global destination in the retail space.

India ranked 73 in the United Nations Conference on Trade and Development's Business-to-Consumer (B2C)
E-commerce Index 2019. India is the world‟s fifth-largest global destination in the retail space and ranked 63
in World Bank‟s Doing Business 2020.

India is the world‟s fifth-largest global destination in the retail space. In FDI Confidence Index, India ranked
16 (after US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and Italy).

MARKET SIZE
As per Kearney Research, India‟s retail industry is projected to grow at a slower pace of 9% over 2019-2030,
from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by 2030.

Revenue of India‟s offline retailers, also known as brick and mortar (B&M) retailers, is expected to increase
by Rs. 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20. India‟s direct selling industry would be valued
at US$ 2.14 billion by the end of 2021.
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According to the Retailers Association of India (RAI), the retail industry achieved 93% of pre-COVID sales
in February 2021; consumer durables and quick service restaurants (QSR) increased by 15% and 18%
respectively.

After an unprecedented decline of 19% in the January-March 2020 quarter, the FMCG industry displayed
signs of recovery in the July-September 2020 quarter with a y-o-y growth of 1.6%. The growth witnessed in
the fast-moving consumer goods (FMCG) sector was also a reflection of positivity recorded in the overall
macroeconomic scenario amid opening of the economy and easing of lockdown restrictions.

E-Retail has been a boon during the pandemic and according to a report by Bain & Company in association
with Flipkart „How India Shops Online 2021‟ the e-retail market is expected to grow to US$ 120-140 billion
by FY26, increasing at approximately 25-30% p.a. over the next 5 years. India has the third-highest number
of e-retail shoppers (only behind China, the US). The new-age logistics players are expected to deliver 2.5
billion Direct-to-Consumer (D2C) shipments by 2030. The Ayurveda Company (TAC), a direct-to-consumer
(D2C) beauty and wellness brand, has raised US$ 3 million from Wipro Consumer Care Ventures, to expand
its production capabilities and enter the retail sector. Online used car transaction penetration is expected to
grow by 9x in the next 10 years. During the festival period in 2020, Amazon, Flipkart and various vertical
players sold goods worth US$ 9 billion despite the pandemic onslaught.

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DEVELOPMENT SCENARIO
Retail tech companies supporting the retail sector with services such as digital ledgers, inventory
management, payments solutions, and tools for logistics and fulfillment are taking off in India. In the first
nine months of 2021, investors pumped in US$ 843 million into 200 small and mid-sized retail technology
companies, which is an additional 260% of capital compared to the entire 2020.

91 Squarefeet, a retail store development business, has worked with over two dozen companies, including
Tata, Aditya Birla Group, and Reliance Retail, illustrating the quick pace with which brick-and-mortar stores
are being opened.

In March 2022, Reliance Brands has bought the India franchisee rights and the current Sunglass Hut retail
network from DLF Brands.

DLF would invest about Rs. 2,000 crore (US$ 262.2 million) in Gurugram and Goa to build two new retail
complexes.

In November 2021, Department for Promotion of Industry and Internal Trade announced that it is working
on a regulatory compliance portal to minimise burdensome compliance processes between industries and the
government.

In October 2021, retailers in India increased by 14% compared with last year

In September 2021, New Delhi-based e-commerce enablement startup GoKwik raised US$ 5.5 million
through Matrix Partners India. Dukaan, another startup that helps businesses digitise operations, received a
US$ 11 million investment led by 640 Oxford Ventures.

The Indian retail trading has received Foreign Direct Investment (FDI) equity inflow totalling US$ 3.61
billion during April 2000- June 2021, according to Department for Promotion of Industry and Internal Trade
(DPIIT).

IWith the rising need for consumer goods in different sectors including consumer electronics and home
appliances, many companies have invested in the Indian retail space in the past few months.

India‟s retail sector attracted US$ 6.2 billion from various private equity and venture capital funds in 2020.

According to a report by PGA Labs and Knowledge Capital, investors had put in US$ 1.4 billion into D2C
companies between 2014 and 2020. The sector recorded an investment of ~US$ 417 million in 2020.

In October 2021, Reliance announced plan to launch 7-Eleven Inc.‟s convenience stores in India.

15
In October 2021, Realme launched 100 new exclusive stores across India to expand and strengthen its
footprint in the country.

In October 2021, Reliance Retail introduced Freshpik, a new experiential gourmet food store in India, to
expand its grocery segment in the ultra-premium category.

In October 2021, Plum, the direct-to-consumer beauty & personal care brand, announced plan to launch >50
offline stores across India (by 2023) to expand its customer base.

In July 2021, Dyson announced to increase its retail presence to 12 stores.

Tanishq, Shoppers Stop and Bestseller India (sells fashion brands Vero Moda, ONLY and Jack & Jones)
plan to add 10-35 stores in FY22.

In 2021, Lenskart received US$ 315 million funding from Falcon Edge Capital, Temasek Holdings, KKR.
The company plans to use the proceeds to expand its retail footprint in Southern India.

Flipkart hired 23,000 individuals in India between March and May 2021 in various capacities across its
supply chain, including delivery executives, to strengthen the supply chain.

In May 2021, Big Bazaar rolled out its two-hour delivery service in small cities, such as Bhopal, Mangalore,
Raipur, Ranchi, Guwahati, Kanpur, Lucknow, and Varanasi, and recorded a boost in orders over the past
weeks.

In April 2021, Flipkart expanded its hyperlocal delivery service Quick to six new cities including Delhi,
Gurugram, Ghaziabad, Noida, Hyderabad, and Pune as the demand for essential goods on e-commerce
platforms surges amid the second wave of the pandemic.

ROAD AHEAD

E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of products at
the lowest rates. E-commerce is probably creating the biggest revolution in retail industry, and this trend is
likely to continue in the years to come. Retailers should leverage digital retail channels (E-commerce), which
would enable them to spend less money on real estate while reaching out to more customers in tier II and tier
III cities.

Online retail market in India is projected to reach US$ 350 billion by 2030 from an estimated US$ 55 billion in
2021, due to rising online shoppers in the country. In 2020, the most common payment methods online were
digital

16
wallets (40%), followed by credit cards (15%) and debit cards (15%). Online penetration of retail is expected to
reach 10.7% by 2024 versus 4.7% in 2019.

Nevertheless, long-term outlook for the industry looks positive, supported by rising income, favourable
demographics, entry of foreign players, and increasing urbanisation.

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CHAPTER – II

RESEARCH DESIGN

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2.1. TITLE OF THE STUDY
“A Study on Global supply chain management at Lulu Hypermarket at Bangalore”.

2.1. OBJECTIVE OF THE STUDY:

PRIMARY OBJECTIVES:

 To find out the supply chain management of Lulu Hypermarket

 To compare the distribution system of Lulu Hypermarket with other retail store.
SECONDARY OBJECTIVES:

 The performance level of the existing distribution channel.

 To find out the marketing situations of Lulu Hypermarket from others.
 To find out the any new scheme required by the dealers.
 Problems related to the existing supply chain management.
 Satisfaction level of the customers (retailers) towards the existing supply chainmanagement.

2.1. STATEMENT OF THE PROBLEM:

 This study of supply chain management of Lulu hypermarket will help in intervening the efficiency and
effectiveness of its supply chain management.
 A marketing channel system is the particular set of marketing channels employed by a firm. Decisions
about the marketing channel system are among the most critical facing management. Marketing channels
also represent a substantial opportunity cost. One of the chief roles of marketing channels is to convert
potential buyers into profitable orders. Marketing channels must not just serve markets, they must also
make markets.
 The study helps streamlining its operations and designing a new supply chain and thereby increasing the
overall value being provided to the consumer and thereby increasing the revenues and the profits for the
company.

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2.1. SCOPE OF THE STUDY:
The main scope of this study is to ascertain the effectiveness of supply chain management and various
methods to increase the sales volume of the concern. The methods include regular information to the buyers
creating a brand position in the market and taking measures to make the brand remain in its position. One of
the important aspects of this study is also increase the market segment for the product.

2.1. VARIABLES AND OPERATIONAL DEFINITION

These are the variables which are in the control of the organization and these can be easily determined
by various factors and some of the controllable variables are as follows:
 Customer Relationship Management
 Customer Service Management
 Demand Management
 Order Fulfilment
 Manufacturing Flow Management
 Supplier Relationship Management
 Product Development and Commercialization and
 Returns Management

OPERATIONAL DEFINITION
SUPPLY CHAIN MANAGEMENT
Nowadays most individual business no longer compete simply as autonomous organizations but rather as
supply chains. Supply chain is referred as a set of companies involved in the upstream and downstream flows
of products, services, finances, and information from a source to a customer (MENTZER et al. 2001).

Supply chain operations include the systems, structures and processes to plan and execute the flow of goods
and services from supplier to customer. To maximize effectiveness, it is critical to evaluate both internal
operations and the extended supply chain that includes suppliers and customers.

The value of successfully addressing supply chain challenges is not only cost savings, but also significant
quality and customer service improvements across the entire supply chain. The need for improved and
integrated supply chain planning and execution has become a common theme for companies of all sizes.
With the numerous external challenges that can affect your organization everyday – tools to enable optimal
remote work can help minimize or prevent disruption in the supply chain operations.

THE REFERENCE SCM CONCEPTUAL MODEL

From a review of relevant literature, six SCM conceptual models that recognize the need of implementing
business processes were identified (Cooper, Lambert, and Pagh 1997; Supply-Chain Council - SCOR 1996;

20
Bowersox, Closs, and Stank 1999/Melnyk, Stank, and Closs 2000; Srivastava, Shervani, and Fahey 1999;
Vollman, Cordon, and Heikkilä 2000; Mentzer 2001).

According to Lambert et al. (2005) and Pires (2004), only two of those conceptual models provide enough
information to support research development in this important area: Cooper, Lambert, and Pagh 1997, and
the Supply Chain Council - SCOR models. In this context, Cooper, Lambert and Pagh SCM conceptual
model (Cooper et al. 1997) was selected to support the evaluating methodology development proposed in this
article, based on many reasons. One is its high frequency of inclusion in existing research, much superior
than the SCOR model. Another is the fact that it is defined broadly and abstractly enough to facilitate its
potential study (LUCAS, 1974 in LEWIS, 1998). Additionally it is of ample comprehensiveness, since
encompasses eight main business processes involving at least six functional areas of the companies. It has a
more academic and didactic base since it presents clearly a conceptual structure and provides detailed
information about the business processes what amplify the possibilities to theory development.

SUPPLY CHAIN DECISIONS

We classify the decisions for supply chain management into two broad categories – Short term &
Long term decisions. As the term implies, short term decisions focus on activities over a day-to-day basis.
On the other hand, long term decisions are made typically over a longer time horizon. These are closely
linked to the corporate strategy and guide supply chain policies from a design perspective.

21
There are four major decision areas in supply chain management:

1). Location,
2). Production,
3). Inventory, and
4). Transportation (distribution), and there are both short term and long-term elements in each of these
decision areas.

1). Location Decisions:

The geographic placement of production facilities, stocking points, and sourcing points is the natural
first step in creating a supply chain. The location of facilities involves a commitment of resources to a long-
term plan. Once the size, number, and location of these are determined, so are the possible paths by which
the product flows through to the final customer. These decisions are of great significance to a firm since they
represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue,
cost, and level of service. These decisions should be determined by an optimization routine that considers
production costs, taxes, duties and duty drawback, tariffs, local content, distribution costs, production
limitations, etc. Although location decisions are primarily long term they also have implications on short
term level.

2). Production Decisions:

The long term decisions include what products to produce, and which plants to produce them in,
allocation of suppliers to plants, plants to DC's, and DC's to customer markets. As before, these decisions
have a big impact on the revenues, costs and customer service levels of the firm. These decisions assume the
existence of the facilities, but determine the exact path(s) through which a product flows to and from these
facilities. Another critical issue is the capacity of the manufacturing facilities--and this largely depends the
degree of vertical integration within the firm. Short term decisions focus decisions focus on detailed
production scheduling. These decisions include the construction of the master production schedules,
scheduling production on machines, and equipment maintenance. Other considerations include workload
balancing, and quality control measures at a production facility.

3). Inventory Decisions:

These refer to means by which inventories are managed. Inventories exist at every stage of the supply
chain as either raw material, semi-finished or finished goods. They can also be in-process between locations.
Their primary purpose to buffer against any uncertainty that might exist in the supply chain. Since holding of
22
inventories can cost anywhere between 20 to 40 percent of their value, their efficient management is critical
in supply chain operations. It is long term in the sense that top management sets goals. However, most
researchers have approached the management of inventory from short term perspective.

These include deployment strategies (push versus pull), control policies --- the determination of the
optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking
location. These levels are critical, since they are primary determinants of customer service levels.

4). Transportation Decisions:

The mode choice aspect of these decisions is the more long term ones. These are closely linked to the
inventory decisions, since the best choice of mode is often found by trading-off the cost of using the
particular mode of transport with the indirect cost of inventory associated with that mode. While air
shipments may be fast, reliable, and warrant lesser safety stocks, they are expensive. Meanwhile shipping by
sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer
against the inherent uncertainty associated with them. Therefore customer service levels and geographic
location play vital roles in such decisions.

3.2. HYPOTHESES

Null hypothesis ( H0)- Experience of the customer with respect to opinion towards on-time delivery, with
respect to opinion towards orders fulfilled properly and with respect to rate on delivery activity , do not
influence the over all satisfaction of customers with respect to the company.

Alternative Hypothesis (H1)- Experience of the customer with respect to opinion towards on-time delivery,
with respect to opinion towards orders fulfilled properly and with respect to rate on delivery activity does
influence the over all satisfaction towards the company.

3.3. QUESTIONNAIRE

The research is based on a questionnaire which includes various Likert scale questions. The Likert
scale questions signify the extent to which the participants agree or disagree with the statements mentioned
in the questionnaire.

3.4. RESEARCH METHODOLOGY:

1.1.Research Design :
A research design is a systematic plan to study a scientific problem. The design of a study defines the study
type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g.,

23
descriptive-longitudinal case study),research question, hypotheses, independent and dependent
variables, experimental design, and, if applicable, data collection methods and a statistical analysis plan.
A research design is the framework or plan for a study used as a guide in collecting and analyzing data.
There are three basic types of research design: exploratory, descriptive, and causal.

1.2..Descriptive Research Design:

Descriptive research design is used in this study:

Descriptive research does not fit neatly into the definition of either quantitative or qualitative research
methodologies, but instead it can utilize elements of both, often within the same study. The term descriptive
research refers to the type of research question, design, and data analysis that will be applied to a given topic.
Descriptive statistics tell what is, while inferential statistics try to determine cause and effect.

The descriptive research attempts to describe, explain and interpret conditions of the present i.e.
“what is‟. The purpose of a descriptive research is to examine a phenomenon that is occurring at a specific
place(s) and time. A descriptive research is concerned with conditions, practices, structures, differences or
relationships that exist, opinions held, processes that are going on or trends that are evident.

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3.9. Data Collection Method :

 Primary Data: Primary research consists of a collection of original primary data collected by the
researcher. It is often undertaken after the researcher has gained some insight into the issue by reviewing
secondary research or by analyzing previously collected primary data. Primary data is collected by
distributing questionnaires to the respondents by survey.

 Secondary Data: Personal meeting with stores manager and assistants. Questionnaire was prepared for
the staffing at Lulu Hypermarket which included several open-ended and close ended questions aimed at
knowing the following:

 Why Lulu Hypermarket

 Loyalty level effect of logistics

3.10. Research Procedure :

Sampling Frame:

A sampling frame is a list of all eligible members of a population from which samples are drawn. It
can be thought of as the pool from which samples are obtained. It is a statistical framework used in
surveys, social research, marketing research, and different types of studies. This frame is necessary to arrive
at an unbiased, accurate conclusion or finding because it defines the population being studied completely. It's
not normally possible or even practical to make direct observations of every element in the population of
interest, and a frame restricts the population being studied to a manageable figure, ultimately helping the
researchers to draw conclusions about the entire population.

Sampling Scheme/Frame:

 Simple non random &

 Judgmental sampling techniques are used to select the unit from the universe.

Simple non random: not all customers have a known chance of occurring or if some outcomes have a zero
chance of occurring. Non random sampling is used when descriptive comments about the sample itself are
desired.

Judgmental Sampling: In Judgmental Sampling, the researcher or some other "expert" uses his or her
judgment in selecting the units from the population for study based on the populations parameters.

Sampling Unit:

Customers, Staff and Store keepers of Lulu Hypermarket are the sampling unit

25
Sampling Size:

The size of the sample chosen is 100 respondents.

3.11. Research tools used:

 Questionnaire is the tool used to collect the data

 Tables and Graphs are used to represent the data collected or analyzed.

3.12. LIMITATIONS OF THE STUDY:

 The study was conducted only in Bangalore district. This may not give a generalized
conclusion.

 The sample size is limited to 100 due to the shortage of time.

 Only some important questions are deal with supply chain management and other
questions are not covered in this study.

 Respondents Bias

26
 CHAPTER III
COMPANY PROFILE

27
3.1COMPANY PROFILE

3.1.1.INTRODUCTION TO THE COMPANY

LuLu Group International is a multinational conglomerate company that operates a chain

of hypermarkets and retail companies, headquartered in Abu Dhabi, United Arab Emirates. It was founded in
2000 by M. A. Yusuff Ali from Nattika, Thrissur district in Kerala, India. LuLu Group International mainly
operates the international chain of hypermarkets named "Lulu Hypermarket". LuLu has over 57,000
employees of various nationalities.

It is one of the largest retail chains in Asia and is the biggest in the Middle East with 215 outlets in
the Gulf Cooperation Council (GCC) countries and elsewhere. LuLu Group International administrates Lulu
Hypermarket which also have 13 malls all over the GCC Countries, LuLu International Shopping Mall along
with Marriott Hotels & Resorts, Kochi in the same Lulu campus and largest mall in Malaysia. Research
firm Deloitte, recently placed it amongst the world's 50 fastest growing retailers. Lulu has also started Lulu
Convention Centre in Thrissur which is spread across an area of 7.3 hectares (18 acres) with a built-up area
of 15,000 square metres (160,000 sq ft). Lulu's project of Lulu Bolgatty International Convention
Centre in Bolgatty Island is one of the largest convention centres in South Asia along with the third largest
Grand Hyatt branded hotel in the same campus. In 2016, M. A. Yusuff Ali, founder of Lulu, purchased the
Scotland Yard Building in London. As of 2013, Yusuff Ali holds a 9.37% share in Cochin International
Airport. Lulu Group International has bought a 10-percent stake in the UK-based trading firm, East India
Company, and a 40-percent stake in its fine foods subsidiary for around $85 million in total. Y International,
the export distribution center in United States and Europe for LuLu Group International

3.1.1.OPERATIONS
MIDDLE EAST ANDINDIA

As of September 2020, there are 200 LuLu Hypermarkets in the GCC countries, one in India at
Kochi, Kerala and one each in Malaysia and four in Indonesia. Lulu group is having 6 operations in India.
They are Lulu Mall and Lulu Cyber Tower in Kochi, Kerala and Lulu fashion centre in Triprayar, Thrissur, 2
Marriott Hotels and resorts in kochi and Lulu convention centre in Thrissur. Also they are going to launch
LuLu convention centre which is south Asia's largest convention centre in Bolgatty, kochi. Lulu group is
undergoing vast expansion plans in retail, food processing and logistics sector.

Lulu group is investing in Bangalore, Chennai, Hyderabad, Visakhapatnam, Lucknow, Calicut and
Trivandrum. During 2011, the Lulu Hypermarket in Sohar, Oman was burned down during the 2011 Omani
protests but has since been rebuilt. Most of the businesses that were built in the immediate proximity of the

28
Hypermarket (Papa John's, Dairy Queen) closed down and stopped business immediately during and after the
protests. They've started the construction of their new mall in Calicut, Kerala, India.

INTERNATIONAL

In April 2013, LuLu Group launched its United Kingdom operations in Birmingham with the
inauguration of logistics and packaging facility under the name, Y International. The facility procures and
exports food, non-food, chilled and frozen products of British origin to LuLu Hypermarkets spread across the
Gulf countries. Date coding and labelling for different countries, translation of labels, Halal and other
relevant certifications are also carried out here. About 60 British nationals are employed at the facility which
hopes to create 200 jobs soon. In May 2014, following the visit of then Prime Minister Najib Razak to
United Arab Emirates, a memorandum of understanding between Lulu Hypermarket and the Federal Land
Development Authority (FELDA) was signed for the establishment of ten Lulu Hypermarkets in Malaysia.

LuLu Hypermarket, the retail division of the multidimensional and multinational LuLu Group
International has always been known as a trend setter of the retail industry in the region. Today, LuLu
symbolizes quality retailing with 113 stores and is immensely popular with the discerning shoppers across
the Gulf region.

With its pleasant and novel variation from the usual supermarkets, LuLu offers an ultra-modern
shopping ambience by integrating all conceivable needs of the consumers under one roof. LuLu
Hypermarkets have extensively laid out counters, sprawling parking spaces, play areas for children, food
court, money exchange and bank counters besides a panoply of international and regional brands aptly
justifying its tagline, "LuLu, where the world comes to shop".

3.1.1.BOARD OF DIRECTORS

 Rupawala, CEO of LuLu Group,

 Ashraf Ali M.A., Executive Director of LuLu Group,
 Mohammed Haris, Director of LuLu Group

3.2.2.VISION
To become a truly global retail brand by retaining our No.1 position in the organized retail sector of
the regions we operate in and strive to be the most preferred employer for our current and future multi-ethnic
employees.

29
3.2.2. MISSION To provide a unique shopping experience to our loyal customers with unmatched quality, in
terms of products & services, while continuously exploring new market opportunities and adding value to all
our business associates.

3.2.2. VALUES

 Integrity
 Teamwork
 Accountability
 Innovation
 Commitment

3.2.3. OBJECTIVES OF LULU HYPERMARKET :

 To analyze how the mix influence the customer satisfaction level.

 To determine the current status of Lulu Hypermarket.
 To study the satisfaction level of customers with regard of Lulu Hypermarket.
 To find out the buying behaviour of the customers coming in to Lulu Hypermarket.
 To identify main competitors of Lulu Hypermarket with regard to services.

3.2.4. SUPPLY CHAIN MANAGEMENT OF LULU HYPERMARKET :

Distribution of stock starts from head office to Zonal office and then to various outlets through
trucks. Lulu Hypermarket out sources its transportation needs from external organizations, and currently uses
trucks as the preferred means of distribution.

3.2.5. COMPETITORS INFORMATION

3.2.5.1.Day Max Super Market
3.2.5.2.Fine Fare Super Market
3.2.5.3.Safal Daily Fresh
3.2.5.4.More Supermarket

30
3.2.6. Organizational Structure

31
3.2.7. PRODUCTS

 Food Items
 Home Décor
 Fashion Room
 Electrical Hub

OWN BRANDS

 IKON Products
 LULU Products
3.2.7..1. Food Items
3.2.7..2. Non Food items

Own Brands
IKON Products

LuLu Products

Frozen Food

32
LuLu Basmati Rice

LuLu Brazil CoffeeLuLu White Oats

LuLu Wafers

LuLu Vegetable OilLuLu Sun Flower Oil

LuLu Corn Flakes LuLu Corn Flakes Classic

33
LuLu Baby Feeding Bottles.. LuLu Hand Sanitizers Cotton Buds

LuLu Petroleum Jelly

LuLu Soap Family Health LuLu Soap LuLu Hand Wash

34
 3.2.8. SWOT ANALYSIS
STRENGTHS OF LULU SUPERMARKET

 The wide product portfolio can allow the organisation to expand the customer base and offset the
losses from one product category with benefits obtained from the other.
 Strong financial position and health can allow the firm to make further investments.
 Access to the suppliers that offer raw material at a lower cost can improve the overall business
efficiency.
 The locational advantage can improve the competitive positioning of the firm in various ways, such
as- lower cost, improved accessibility or enhanced brand image.
 The well-developed and efficiently integrated IT infrastructure can improve the operational efficiency
and increase knowledge of the latest market trends.
 Competent and committed human capital can act as a powerful source of competitive advantage,
particularly when business is service oriented in nature.

WEAKNESSES OF LULUSUPERMARKET

 The organisation can draw the criticism from the environmentalists for its poor waste management
practices and inability to integrate sustainability in business operations.
 The company may lose efficiency due to poor inventory management practices. The shortage or
excessive inventory can either result into
 The cash shortage or insufficient current assets negatively affect the liquidity position and harms the
overall business performance.
 Insufficient budget for the marketing and promotion activities weakens the firms‟ ability to expand
the customer base and encourage repeat purchase.
 Less expenditure on the research and development activities can weaken the company performance
due to poor local/international market knowledge.

OPPORTUNITIES OF LULUSUPERMARKET

 The exponential growth in the population, and particularly in the existing or potential customer
segments is a great growth opportunity for the business organisation.
 The changing customer needs, tastes and preferences can act as an opportunity if the business
organisation has good market knowledge.
 The development of new technologies to assist the product/service production and delivery process
can be exploited to embed the innovation in business operations. The advanced technological

35
 integration can decrease costs, improve efficiency and result in the quick introduction of innovative
products.
 Rise in the customers‟ disposable income and increase in the affluent customer base can be taken as
an opportunity to introduce more high-end products.
 Improvement in the customers- lifestyle and standards mean more consumption on consumer goods
and services, and more opportunities to encourage the purchase.

THREATS OF LULUSUPERMARKET

 The increasing number of direct and/or indirect competitors affects the organisation's ability to sustain
and expand the customer base.
 The deteriorating economic conditions affect business performance when they directly influence the
customers' spending patterns and purchasing power.
 The rise in inflation increases the cost of production and affects the business profitability.
 The growing environmental sustainability trends act as a major threat when offered products/services
are not environment friendly. It draws the negative publicity and criticism from the environmentalists
and affects the brand image in a competitive market.
 The globalisation pushes the organisation to cross national boundaries and deal with cultural diversity,
which may have a detrimental impact if the organisation lacks the cultural intelligence.

36
 CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

37
 TABLE NO: 4.1

WHETHER SUPPLY CHAIN MANAGEMENT HAVING ALL THE ADDRESS OF

THE LULU HYPERMARKET BRANCHES

S.NO: OPINION NO:OF RESPONDENTS PERCENTAGE

1. Yes 76 76

2. No 24 24

Total 100 100

ANALYSIS

From the analysis it shows whether the supply chain management having all the address of the Lulu
hypermarket branches or not, i.e., 76% of respondents agreed and 24% of respondents disagreed with this
statement.

38
 CHART– 4.1

WHETHER SUPPLY CHAIN MANAGEMENT HAVING ALL THE ADDRESS OF

THE LULU HYPERMARKET BRANCHES

24

Yes

NO

76

INTERPRETATION:

From the above graph shows that majority 76% of the respondents agreed that the supply chain
management having all the address of the Lulu hypermarket branches in Bangalore.

39
 TABLE NO:4.2

RATE THE WORKING STRATEGIES OF SUPPLY CHAIN

MANAGEMENT DEPARTMENT

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

1 Outstanding 16 16

2 Excellent 24 24

3 Good 52 52

4 Average 8 8

Total 100 100

ANALYSIS:
From the above table we can observe that, 52% of respondents have good opinion, 24% of the
respondents said excellent, 16% of respondents said outstanding and 8% of the respondents have average
opinion with working strategies of supply chain management department on the basis of the current
programs of Lulu hypermarket.

40
 CHART NO:4.2

RATE THE WORKING STRATEGIES OF SUPPLY CHAIN

MANAGEMENT DEPARTMENT

Outstanding Excellent Good

Average
6
5

4
Percenta

3 2

1
2

8
1

0
Outstandin Excelle Goo Averag
Opinio

INFERENCE:
From the above graph shows that 52% of respondents have good opinion with working strategies of
supply chain management department on the basis of the current programs of Lulu hypermarket.

41
 TABLE NO:4.3

WHETHER THE SUPPLY CHAIN MANAGEMENT DEPARTMENT IS HAVING

SUFFICIENT TRANSPORTATION

S.NO: OPINION NO:OF RESPONDENTS PERCENTAGE

1. Yes 81 81

2. NO 19 19

Total 100 100

ANALYSIS

From the above table it reveals that 81% of respondents said that the supply chain management
department is having sufficient transportation and 19% of the respondents said that the supply chain

management department doesn‟t having sufficient transportation.

42
 CHART NO:4.3

WHETHER THE SUPPLY CHAIN MANAGEMENT DEPARTMENT IS HAVING

SUFFICIENT TRANSPORTATION

19

YesNO

81

INFERENCE:
From the above graph we can see that majority 81% of respondents said that the supply chain
management department is having sufficient transportation.

43
 TABLE NO:4.4

ORDERS ARE DELIVERED ON THE TIME

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

1 Strongly agree 12 12

2 Agree 40 40

3 Neutral 24 24

4 Disagree 16 16

5 Strongly disagree 8 8

Total 100 100

ANALYSIS:

From the table it is found that, 40% of the respondents agreed that the orders are delivered on the
time from the distributor, 24% of the respondents feel neutral, 16% of the respondents disagreed, 12% of the
respondents neutral and 8% of the respondents strongly disagreed.

44
 CHART – 4.4
ORDERS ARE DELIVERED ON THE TIME

4
4
Strongly agree Agree Neutral Disagree
Strongly disagree
3

2
2
Percenta

2
1

1 1

1 8

0
Strongl y Agre Neutra Disagre Strongl y

Opinio

INTERPRETATION:

From the above graph it shows that majority 40 % of respondents agree that there orders are delivered
to them on time.

45
 TABLE NO: 4.5

ORDERS ARE FULFILLED PROPERLY

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

1 Strongly agree 16 16

2 Agree 24 24

3 Neutral 48 48

4 Disagree 8 8

5 Strongly disagree 4 4

Total 100 100

ANALYSIS:

From the above table shows that majority 48% of the respondents are having neutral opinion that
there orders are fulfilled properly, 24% of the respondents are agree, 16% of the respondents are strongly
agree, 8% of the respondents are disagree and 4% of the respondents are strongly disagree.

46
 CHART – 4.5

ORDERS ARE FULFILLED PROPERLY

4
5

4 Strongly agree Agree Neutral Disagree

5 Strongly disagree
4
0
3
Percenta

2
2
5
1

1
5 8
4
5
0

Strongly Agre Neutra Disagre Strongl y

Opinio

INTERPRETATION:

From the above graph shows that majority 48% of the respondents are having neutral opinion that there
orders are fulfilled properly.

47
 TABLE NO:4.6

WHETHER THE ACCOUNTS SETTLED TIMELY

S.NO: OPINION NO:OF RESPONDENTS PERCENTAGE

1. Yes 76 76

2. NO 24 24

Total 100 100

ANALYSIS

From the analysis it shows whether the accounts are settled timely or not, i.e., 76% of respondents
agreed and 24% of respondents disagreed with this statement.

48
 CHART– 4.6

WHETHER THE ACCOUNTS SETTLED TIMELY

24

Ye s

76

INTERPRETATION:

From the above graph shows that majority 76% of the respondents agree that the accounts are settled
timely to supply chain department.

49
 TABLE NO:4.7

REASON FOR MISSED THE ORDER

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

1 Wrong order 20 20

Sudden change on
12 12
2 whether

3 Change in schemes 4 4

Less availability of
64 64
4 stocks

Total 100 100

ANALYSIS:
From the above table shows that 64% of respondents said that their orders are missed due to less
availability of stocks,20% of respondents said that their orders are missed due to wrong order12, % of
respondents said that their orders are missed due to sudden change in whether and 4% said due to change in
schemes.

50
 CHART - 4.7

REASON FOR MISSED THE ORDER

Wrong order

7 6
Sudden change on whether
6
Change in schemes

5
Less availability of stocks

4
Percenta

3
2

2 1

1 4

0
Wrong Sudden change Change in Less availability
on whether

INTERPRETATION:

From the above graph indicates that majority 64% of respondents said that their orders are missed due
to less availability of stocks.

51
 TABLE - 4.8

QUALITY COMPLAINTS SOLVED PROPERLY

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

1 Strongly agree 12 12

2 Agree 36 36

3 Neutral 28 28

4 Disagree 20 20

5 Strongly disagree 4 4

Total 100 100

ANALYSIS:

From the table it shows that, 36% of the respondents agreed there complaints are solved properly,
28% of the respondents neutral, 20% of the respondents disagree, 12% of the respondents strongly agree and
4% of the respondents strongly disagree.

52
 CHART - 4.8
QUALITY COMPLAINTS SOLVED PROPERLY

Strongly agree Agree Neutral Disagree

Strongly disagree

4 1
2

3
2

INTERPRETATION:

From the graph it is inferred that there is 36% of the respondents agreed there complaints are solved
properly.

53
 TABLE : 4.9

SUPPLIER HAVE EMPATHETIC ATTITUDE

TOWARDS YOUR PROBLEM

S.NO: RELATION NO:OF RESPONDENTS PERCENTAGE

1 Strongly agree 44 44

2 Agree 24 24

3 Neutral 20 20

4 Disagree 8 8

5 Strongly disagree 4 4

Total 100 100

ANALYSIS

The above table shows that 44% of the respondents are strongly agree that supplier have empathetic
attitude towards their problem, 24% of the respondents are agreed, 20% of the respondents are having neural,
8% of the respondents are disagreed and 4% of the respondents are strongly disagreed that salesman have
empathetic attitude towards your problem.

CHART-4.9

54
 SUPPLIER HAVE EMPATHETIC ATTITUDE
TOWARDS YOUR PROBLEM

5
Strongly
0 4

4 agree Agree
0
3 Neutral
5
Percenta

3 2 Disagre
2
0 2
1 e
5
5 Strongl
0 8
4

Strongly agree Neutral Disagre Strongly

Opinio

INTERPRETATION:

It can be inferred from the above graph that 44% of the respondents are strongly agree that supplier
have empathetic attitude towards their problem.

55
 TABLE NO: 4.10

RATE THE SUPPLY NORMS OF THE SCM

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

1 Good 30 30

2 Average 44 44

3 Poor 26 26

Total 100 100

ANALYSIS:

From the above table analysis shows that 44% of respondents have average opinion on supply norms
of the supply chain management department, 30% of respondents have good opinion and 26% of respondents
have poor opinion on supply norms of the supply chain management department.

56
 CHART NO: 4.10

RATE THE SUPPLY NORMS OF THE SCM

Good
4 Average Poor
4
5
4
0
3
3 2
Percenta

2
5
2
0
1
5
1
0

Goo Averag e Poo

INTERPRETATION:

From the above graph it clearly shows that majority 44% of respondents have average opinion on
supply norms of the supply chain management department.

57
 TABLE NO: 4.11

SUPPLY CHAIN MANAGEMENT HAVE COURTESY AND ETIQUETTE IN

THEIR BEHAVIOR

S.NO: RELATION NO:OF RESPONDENTS PERCENTAGE

1 Strongly agree 20 20

2 Agree 64 64

3 Neutral 12 12

4 Disagree 4 4

5 Strongly disagree 0 0

Total 100 100

ANALYSIS:

From the table it is found that 64% of the respondents agree that the supplier chain management have
courtesy and etiquette in their behavior, 20% of the respondents strongly agree, 12% of the of the
respondents neutral, and 4% of the respondents disagree with this.

58
 CHART NO: 4.11

SUPPLYCHAIN MANAGEMENT HAVE COURTESY AND ETIQUETTE IN

THEIR BEHAVIOR

1 Strongly agree Agree Neutral Disagree

Strongly disagree
1
6

1
4

1
2
Percenta

1
0
5

4 3

2 1
0
0
Strongly Agre Neutra Disagre Strongl y

Opinio

INTERPRETATION:

It is clearly shows that 64% of the respondents agree that the supplier chain management have
courtesy and etiquette in their behavior.

59
 TABLE NO: 4.12

WHICH NEEDS MUCH ATTENTION AND PROGRESS TO

BOOST THE SERVICES

S.NO: RELATION NO:OF RESPONDENTS PERCENTAGE

1 Operational activities 20 20

2 Tactical activities 64 64

Current programming
16 16
3 strategies

Total 100 100

ANALYSIS:
According to the current growth process of the organization majority 64% of respondents said tactical
activities are needs to much attention and progress to boost the services, 20% said operational activities and
16% said current programming strategies.

60
 CHART NO: 4.12

WHICH NEEDS MUCH ATTENTION AND PROGRESS TO

BOOST THE SERVICES

6 Operation al activities
7
Tactical activitie s
6
Current
5 programmin g strategies

4
Percenta

3 2
1
2

0
Operational Tactical Current programming

Opinio

INFERENCE:

Majority 64% of respondents said tactical activities are needs to much attention and progress to boost the
services.

61
 TABLE NO: 4.13

PROBLEMS OF SUPPLY CHAIN MANAGEMENT

S.NO: RELATION NO:OF RESPONDENTS PERCENTAGE

1 During storage 16 16

2 Packaging 52 52

3 Testing of packaging 24 24

Evaluation of
8 8
4 defective products

Total 100 100

ANALYSIS:
From the above table analysis shows that 52% of respondents said packaging is the main problem
while taking care of the products in the supply chain department of Lulu hypermarket, 24% of respondents
facing testing or packaging problems, 16% of respondents facing storage problems and 8% of respondents
facing evaluation of defective products.

62
 CHART NO: 4.13

PROBLEMS OF SUPPLY CHAIN MANAGEMENT

During storage

8 Packaging
16
Testing of packaging

24 Evaluation of
defective products

52

INFERENCE:

From the above chart shows that 52% of respondents said packaging is the main problem while taking
care of the products in the supply chain department of Lulu hypermarket,

63
 TABLE NO: 4.14

TO WHAT EXTENT THAT FUNCTIONS AFFECT YOUR

EFFICIENCY OF SUPPLY CHAIN MANAGEMENT

S.NO RELATION NO:OF RESPONDENTS PERCENTAGE

1 Inventory 16 16

2 Transportation 49 49

3 Lead time 24 24

4 Purchasing 11 11

Total 100 100

ANALYSIS:
From the above table shows that majority 49% of respondents said transportation affect their
efficiency of supply chain management, 24% of respondents said lead time, 16% of respondents said
inventory and 11% of respondents said purchasing.

64
 CHART NO: 4.14

TO WHAT EXTENT THAT FUNCTIONS AFFECT YOUR

EFFICIENCY OF SUPPLY CHAIN MANAGEMENT

6
Inventory Transportation Lead time Purchasing

4
5

4
Percent

3
2

2
1

1
1

0
Inventor Transportation Lead Purchasin
Opinio

INFERENCE:
From the above graph we can observe that majority 49% of respondents said transportation affect their
efficiency of supply chain management.

65
 TABLE NO: 4.15

FACTORS TO DEVELOPING SUPPLY CHAIN COLLABORATION

S.NO RELATION NO:OF RESPONDENTS PERCENTAGE

Improved customer
1 service 12 12

Overall supply chain

2 reduction 35 35

Increased
3 profitability 27 27

Benefits to
4 the clients 10 10

Benefits to your
5 supplier 7 7

Improved quality
6 assurance 9 9

100 100
Total

ANALYSIS:
From the above table shows that 35% of respondents said overall supply chain reduction is the main
important factors to their organization when considering developing supply chain collaboration, 27% of
respondents said increased profitability, 12% said improved customer service, 10% said benefits to the
clients, 9% said improved quality assurance and 7% said benefits to your suppliers.

66
 CHART NO: 4.15

FACTORS TO DEVELOPING SUPPLY CHAIN COLLABORATION

Improved customer service

Overall supply chain reduction Increased

profitability Benefits to
the clients
9 1 Benefits to your supplier Improved
07
1

INFERENCE:

From the above graph indicates that 35% of respondents said overall supply chain reduction is the main
important factors to their organization when considering developing supply chain collaboration.

67
 TABLE NO: 4.16

FACTORS TO DEVELOPING A SUCCESSFUL SUPPLY CHAIN RELATIONSHIP

WITH A SUPPLIER

S.NO RELATION NO:OF RESPONDENTS PERCENTAGE

1 Reliable delivery date 21 21

Accurate order
2 fulfilment 18 18

Delivery at specified
3 time 16 16

4 Flexibility 13 13

5 Fast order Cycle time 9 9

6 Quality of service 13 13

7 Trust 10 10

100 100
Total

ANALYSIS:

From the above table explicit, majority 21% of respondents said reliable delivery date is the main
factor when developing a successful supply chain relationship with a supplier, 18% of respondents said
accurate order fulfilment, 16% of respondents said delivery at specified time, 13% said fliexibity and quality
of service, 10% said trust and 9% said fast order cycle time.

68
 CHART NO: 4.16
FACTORS TO DEVELOPING A SUCCESSFUL SUPPLY CHAIN RELATIONSHIP
WITH A SUPPLIER

10
21
Reliable delivery date Accurate order fulfilment Deliver
Fast order Cycle time Quality of service Trust
13

9
18

13

16

INFERENCE:
Majority 21% of respondents said reliable delivery date is the most and main factor when developing a
successful supply chain relationship with a supplier.

69
 TABLE NO: 4.17

RATE OF THE DELIVERY ACTIVITY OF SUPPLY CHAIN DEPARTMENT

S.NO: PARTICULARS NO:OF RESPONDENTS PERCENTAGE

Excellent 24 24
1
2 Very effective 20 20

3 Good 44 44

4 Average 12 12

Total 100 100

ANALYSIS:
From the above table reveals that majority 44% of respondents have good opinion on delivery
activities of supply chain department, 24% of respondents said excellent, 20% of respondents said very
effective and 12% of respondents said average.

70
 CHART NO: 4.17

RATE OF THE DELIVERY ACTIVITY OF SUPPLY CHAIN DEPARTMENT

5
0
4
Good Average Quality
Brand Image
4
0
3
5
Percenta

3
0
1
2
1 1 1
1
0
5

Goo Averag Qualit Brand

Opinio

INFERENCE:
Majority 44% of respondents have good opinion on delivery activities of supply chain department.

71
 TABLE NO: 4.18

ANY COMPLAINTS REGARDING LATE DELIVERY OF PRODUCTS

S.NO: OPINION NO:OF RESPONDENTS PERCENTAGE

1. Yes 34 34

2. No 66 66

Total 100 100

ANALYSIS

From the above table indicates that 66% of respondents said there is no complaint is recorded by the
supply chain department in which the store department complained late delivery of products and 34% of
respondents agree that there is complaint is recorded regarding late delivery of products.

72
 CHART NO: 4.18

ANY COMPLAINTS REGARDING LATE DELIVERY OF PRODUCTS

6
7 Yes
0 No

6
0

5 3
Percenta

3
0

20

10

Ye No
Opinio

INFERENCE:
Majority 66% of respondents said there is no complaint is recorded by the supply chain department in
which the store department complained late delivery of products.

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 TABLE NO: 4.19

HAPPY WITH THE SERVICES PROVIDED BY SUPPLY CHAIN DEPARTMENT

S.NO: OPINION NO:OF RESPONDENTS PERCENTAGE

1. Yes 79 79

2. NO 21 21

Total 100 100

ANALYSIS:

From the above table shows that 79% of respondents are satisfied with the service
provided by supply chain department and 21% of respondents are dissatisfied with the
service provided by supply chain department.

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 CHART NO: 4.19

HAPPY WITH THE SERVICES PROVIDED BY SUPPLY CHAIN DEPARTMENT

21

Yes
N

79

INTERPRETATION:

Majority 79% of respondents are satisfied with the service provided by the supply chain department.

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 CHAPTER II
REVIEW OF LITERRATURE

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1. Hu & Hsu, (2010), claim that due to the rapid worldwide industrialization caused to damage and
pollute the environment, ozone depletion, greenhouse effect and Antarctic icebergs to melt. (Meera &
Chitramani (2016), explain the issues raised from public to demand manufacturers about their
responsibilities related to the industrial production in India. Organizations are compelled to face
shrinking profit margins and offer competitive prices when initiatives are taken to reduce the carbon
footprint in the supply chain to become environment friendly and going with the green
implementations in their industries.“Being a part of the global supply chain, Indian manufacturing
has a significant impact on the changing paradigms in the SCM practices. The two major paradigms
that have made inroads are green and lean”.
2. Zeng, Phan & Matsui (2013) proposed a conceptual framework to study the relationships among
three dimensions of supply chain quality management (SCQM) – in-house quality management
practices (internal QM), interaction for quality with suppliers on the upstream side of supply chain
(upstream QM), and interaction for quality with customers on the downstream side of supply chain
(downstream QM) – and their impact on two types of quality performance (conformance quality, and
customer satisfaction). Survey data were collected from 238 plants in three industries across eight
countries and structural equation modelling was used to test this framework. The results indicate a
dominant role of the internal QM in SCQM which has a positive impact on the other SCQM
dimensions and two types of quality performance. The importance of quality in connection with
supply chain performance is evident from the study and hence the researcher has included quality as
one of the factors defining SCP.
3. Realizing this, Gunasekaran et al. (2004) highlighted the importance of adopting holistic system
perspective or a system wide balance approach in designing a supply chain performance measure.
Eventually, this balance performance measurement facilitates interunderstanding and integration
among members of a supply chain (Chan, Qi, Chan, Lau, & Ip, 2003). This, in turn encourages
supply chain members to share mutual customer-focused goals in order to achieve changing customer
requitements (Chan & Qi, 2003a; Vries & Huijsman, 2011).
4. The purpose of the study by Sukwadi, Wee & Yang (2013) is to explore how lean–agile operations
and supplier–firm partnership can improve garment small and medium enterprise (SME) supply chain
performance. This study is based on cross-sectional survey research that provides longitudinal
evidence to show how lean–agile operations and partnership strategy influence supply chain and
garment SME performance. To clarify the relationships among these constructs, structural equation
model (SEM) is conducted to examine the model fit and the five hypotheses. The result shows that
agile supply chain and partnership strategy are critical for garment SMEs because these strategies
influence their supply chain performance. However, the leanness strategy does not necessarily

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5. influence their supply chain performance. The supply chain performance and partnership strategy
have a positive influence on the SME performance. Since the study here is in the garments industry,
the results can be leveraged to help the researcher in his findings.
6. Tukamuhabwa (2011) proposes a conceptual framework, to be used to conduct an empirical study of
supply chain performance in SMEs in Uganda. The need for this study arises from the fact that where
as SMEs form the back borne of Uganda‟s economy, they have encountered poor supply chain
performance. Previous researchers also indicate that studies in SMEs and their supply chains are
limited and that more research is needed regarding the link between marketing and supply chain
management. The proposed conceptual framework presupposes a positive relationship between
market orientation and supply chain performance with organizational learning, supply chain
management strategy, trust and commitment playing mediating roles whereas the researcher has
combined factors trust and commitment and included in the factor dependability.
7. The purpose of this supply chain performance is to meet its short-term and long-term objectives
(Atilgan & McCullen, 2011). The short-term objectives of the supply chain performance involve
measures purported to improve productivity of the total supply chain through (1) inventory reduction
and (2) shorter lead time. Simultaneously, the long-term objectives of the supply chain performance
involve measures purported to (1) increase market share and (2) integration of all trading partners in
the total supply chain (Li, RaguNathan, et al., 2006; Lyons, et al., 2004; Tan, Kannan, et al., 1998).

8. Based on the survey data from 232 companies that have obtained ISO 9000 certification, the study by
Lia, Subc & Chen (2011) extends the five decision areas (Plan, Source, Make, Deliver, and Return)
of the SCOR model by integrating quality assurance measures in the supply chain process. The
results show that individually, each decision area has a positive impact on both customer-facing
supply chain quality performance and internal-facing firm level business performance. Collectively,
„Plan‟ and
„Source‟ decisions are more important to customer-facing supply chain performance (reliability,
response, and flexibility), and „Make‟ decisions positively affect internal-facing performance metrics
(cost and asset). This study extends the existing research on the SCOR model in several important
ways. The researcher also emphasizes the importance of quality as one of the factors of supply chain
performance in his study.
9. According to Zhang & Wang (2011), Supply chain reliability and ability to do with risks are
important research fields in SCM. The authors empirically document the associations among
information technology, supply chain robustness, and supply chain performance. Based on a sample
of 186 questionnaires, the results show the positive impact of information technology on supply chain
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robustness and supply chain performance, and also the positive impact of supply chain robustness and

79
 supply chain performance. Reliability is recognized as one of the important factors that
determine supply chain performance. And the researcher has renamed this factor as
dependability in his research.
10. Shamshuzzaman, Hossain & Hassan (2014), has done supply chain performance
evaluation in industries and evaluated current practices of companies against world
class practices. The role of these measures in the success of an organization cannot be
overstated because they affect strategic, tactical, operational planning and control.
Performance measurement and metrics have an important role to play in setting
objectives, benchmarking, evaluating performance, and determining future courses of
actions therefore a better framework is necessary for Supply chain performance
evaluation. This encouraged the researcher to define the factors that will bring out the
effectiveness and efficiency of supply chain performance.

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 CHAPTER – VI
SUMMARY OF FINDINGS

81
 Majority 76% of the respondents agreed that the supply chain management having all the address of
the Lulu hypermarket branches in Bangalore.
 52% of respondents have good opinion with working strategies of supply chain management
department on the basis of the current programs of Lulu hypermarket.
 81% of respondents said that the supply chain management department is having sufficient
transportation
 Majority 40 % of respondents agree that there orders are delivered to them on time.
 Out of 100 respondents, 48% of the respondents are having neutral opinion that there orders are
fulfilled properly.
 Majority 76% of the respondents agree that the accounts are settled timely to supply chain department.
 Most of (64%) respondents said that their orders are missed due to less availability of stocks.
 36% of the respondents agreed there complaints are solved properly.
 44% of the respondents are strongly agree that supplier have empathetic attitude towards their problem.
 Majority 44% of respondents have average opinion on supply norms of the supply chain
management department.
 64% of the respondents agree that the supplier chain management have courtesy and etiquette in their
behavior.
 Majority 64% of respondents said tactical activities are needs to much attention and progress to boost
the services.
 52% of respondents said packaging is the main problem while taking care of the products in the
supply chain department of Lulu hypermarket.
 Majority 49% of respondents said transportation affect their efficiency of supply chainmanagement.
 35% of respondents said overall supply chain reduction is the main important factors to their
organization when considering developing supply chain collaboration.
 Majority 21% of respondents said reliable delivery date is the main factor when developing a
successful supply chain relationship with a supplier.
 Majority 44% of respondents have good opinion on delivery activities of supply chain department.
 Majority 44% of respondents have good opinion on delivery activities of supply chaindepartment.
 66% of respondents said there is no complaint is recorded by the supply chain department in which
the store department complained late delivery of products.

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 CHAPTER – VII

SUGGESTIONS AND RECOMMENDATIONS

83
 Lulu hypermarket try to use some modern techniques for time saving. JIT (Just in time) is one of the
good methods for it. This will help in minimizing precious time as well as blockage of theitems.
 Proper concentration should be given on the mode of transportation i.e. Trucks and find an optional
way to prevent loss in production.
 Improvement in supply chain: Lulu Hypermarket should use more better techniques for improvising
its supply chains.
 Warehouse location: Though it is a cost cutting formula of Lulu Hypermarket, but its own logistics
called future logistics, it should try some other ways to improve its in housing of goods.
 Prepare blueprint for change that maps linkages among initiatives.
 Assess the entire supply chain from supplier relationships to internal operations to the market place,
including customers, competitors and retail industry whole.

84
CONCLUSION

85
Supply chain management (SCM) is the combination of art and science that goes into improving the way
your company finds the raw components it needs to make a product or service and deliver it to customers. It
is the process of planning, implementing, and controlling the operations of the supply chain with the purpose
to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement
and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-
consumption.

Supply chain management plays a very important role especially with respect to the retail industry
because if the product is not available on time the consumes will switch on to other retail store and the
company will loose its market share and hence an effective distribution channel is the need of this industry.

The Lulu Hypermarket is maintaining good relationship with its suppliers and its supply chain
management is effective.

86
 APPENDIX
QUESTIONNAIRE

87
1. Is supply chain management having all the address of the Lulu Hypermarket branches in Bangalore?

a) Yes b) No

2. Rate the working strategies of supply chain management department on the basis of the currentprograms?

a) Outstanding b) Excellent c) Good d) Average

3. Is the supply chain management department is having sufficient transportation?

a) Yes b) Not Sufficient

4. Are the orders delivered to you on time?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

5. Are your orders fulfilled properly?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

6. Whether the accounts settled timely?

a) Yes b) No

7. Ever missed you order. if yes then what may be reason

a) Wrong order b) Sudden change on whether

c) Change in schemes d) Less availability of stocks

88
8. Do the quality complaints solved properly

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

9. Do the supplier have empathetic attitude towards your problem

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

10. How do you rate the Supply norms of the SCM?

a) Good b) Average c) Poor

11. Do the supply chain management have courtesy and etiquette in their behavior?

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

12.According to the current growth process of the organization, which of the following needs much attention
and progress to boost the services?

a) Operational activities b) Tactical activities

c) Current programming strategies

13. Choose the right option, where the supply chain department is facing problem in taking care of the
products?

a) During storage b) Packaging

c) Testing of packaging d) Evaluation of defective products

14.To what extent do you consider that the following functions affect your efficiency of supply
chain management?

a) Inventory b) Transportation c) Lead time d) Purchasing

89
15.How important are the following factors to your organization when considering developing a supply
chain collaboration?

a) Improved customer service b) Overall supply chain reduction

c) Increased profitability d) Benefits to the clients

e) Benefits to your supplier f) Improved quality assurance

16.How important are the following factors when developing a successful supply chain relationship with a
supplier?

a) Reliable delivery date b) Accurate order fulfilment

c) Delivery at specified time d) Flexibility

e) Fast order Cycle time f) Quality of service

g) Trust

17.How do you rate the delivery activity of the supply chain department?

a) Excellent b) Very effective c) Good d) Average

18.Is there any case recorded by the supply chain department in which the store department complained late
delivery of products?

a)Yes b) No

19.Are you happy with the services provided by Supply Chain Management?

a) Yes b) No

20.Please add anypersonal comments on the subject of supply chain management within the Lulu
hypermarket and how it can be improved in the future.

90
 BIBLIOGRAPHY

BOOKS:
 Arntzen, B. C., G. G. Brown, T. P. Harrison, and L. Trafton. Global Supply Chain Management at
Digital Equipment Corporation. Interfaces, Jan.-Feb., 1995.

 Kothari C.R., Research Methodology, WishwaPrakashan, New Delhi, 1985(Reprint 2003).

 D. Aaker, V. Kumar, and G. Day - Marketing Research, Singapore, John Wiley & Sons (ASIA) Pte
Ltd, Seventh Edition, 2003.

 Richard .I. Levin, David S. Rubin, Statistics for Management, USA, Prentice-Hall, Inc, Seventh
Edition, 2002.

 Huang, C.C., & Lin, S., (2010), Sharing knowledge in a supply chain using the semantic web. Expert
Systems with Applications, 37, 3145–316

 Hall, Matos & Silvestre. (2012). A Complexity Approachto the Triple Bottom Line in Sustainable
Supply Chains,Int. J. of Production Research, 50 (5): 1332-1348

Journal
 Halley, A., Nollet, J., Beaulieu, M., Roy, J., & Bigras, Y. (2010). The impact of the supply chain on
core competencies and knowledge management: direction for future research. International Journal of
Technology Management, 49, 297-313.

 Niemi, P., Huiskonen, J., & Karkkainen, H. (2010). Supply chain development as a knowledge
development task. International journal of Networking and Virtual Organizations, 7, 132-149.

WEBSITES:

 www.google.co.in
 www. india.luluhypermarket.com
 www.ibef.org/industry/retail-india

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