A STUDY ON LOGISTICS MANAGEMENT IN BIG

BAZAAR,AMEERPET,HYDERABAD,TELANGANA

PRESENTED BY
PROJECT GUIDE SHIVAMITRA CH
Dr R.ANITA MBA 2 A
121418672028
TABLE OF CONTENTS
• CHAPTER 1 : INTRODUCTION
• CHAPTER 2 : LITERATURE REVIEW
• CHAPTER 3 : INDUSTRY PROFILE AND COMPANY PROFILE
• CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
• CHAPTER 5 : FINDINGS,SUGGESTIONS, AND CONCLUSION
CHAPTER 1 : INTRODUCTION

• 1.1 Introduction to the study

• 1.2 Need and importance for the study
• 1.3 Objectives of the study
• 1.4 Research Methodology
• 1.5 Scope of the study
• 1.6 Chapterization
1.1 INTRODUCTION TO THE STUDY
• Definition of logistics
• The American Council of Logistics Management defines logistics as
“the process of planning, implementing and controlling the efficient,
cost effective flow and storage of raw materials, in-process inventory,
finished goods and related information from point of origin to point of
consumption for the purpose of conforming to customers’
requirements”.
• The logistics system consists of the following components: Customer
service, Inventory management, Transportation, Storage and materials
handling, Packaging, Information processing, Demand forecasting,
Production planning, Purchasing, Facility location and other activities.
1.2 NEED OF THE STUDY
• In maintaining inventory at the optimal level, so that there is no
shortage or surplus of stock and thus achieving the customer needs
and wants.
• To evaluate cost optimization by making the pallets or the shipment
box denser.
• To achieve faster delivery of the goods and the goods are delivered at
right time and at right place by sending more goods at cheaper rate.
1.3 OBJECTIVES OF THE STUDY

• To study the logistics activities at big bazaar.

• Customer’s perception on logistics operations.
• Study on logistics management at Big Bazaar.
• To give the suggestions based on the study
 1.4 RESEARCH METHODOLOGY
• RESEARCH DESIGN
Descriptive Research was undertaken to study the various logistics activities at big
Bazaar.
• DATA SOURCES
To full fill the above objectives of the study, both primary and secondary data is taken
into consideration.
• Primary Data
Data is collected through personal interviews and discussions with senior logistics
manager, deputy logistics manager and also from assistant warehouse manager.
• Secondary Data
The Secondary data is the data which is already collected and stored. The secondary
data is collected from various sources like Internet, manuals, journal and books.
1.5 SCOPE OF THE STUDY

The Study is confined to logistics management at Big bazaar Ameerpet,

Hyderabad and customers perception on logistics management.
1.6 CHAPTERIZATION
• First chapter consists of INTRODUCTION to the study includes the need for study,
importance of study, objectives, research methodology-, sources of data, tools and
techniques of analysis, scope of the study, chapterization with sound explanation.
• Second chapter consists of REVIEW OF LITERATURE which reflects the relevant
theoretical and empirical background of the study on Logistics Management
• Third chapter consists of the INDUSTRY AND COMPANY PROFILE which contains a
brief historical retrospect about industry and company.
• Fourth chapter consists of DATA ANALYSIS AND INTERPRETATION based on the
collected data from various primary and secondary sources
• Fifth chapter consists of FINDINGS, CONCLUSION and SUGGESTIONS along with
LIMITATIONS and is concluded with BIBLIOGRAPHY.
CHAPTER 2 : REVIEW OF
LITERATURE
• 2.1 Logistics
• 2.2 Origin of logistics
• 2.3 Functions of logistics
• 2.4 Procurement & outsourcing of logistics
• 2.5 Ware housing or distribution center
• 2.6 Packaging
• 2.7 Transportation
• 2.8 Merits & demerits of logistics
• 2.9 Articles reviewed
2.9 ARTICLES REVIEWED
• Fernie and Spark (1998) discussed on “logistics and retail management
insights into current practice and trends from leading experts”
• Stock and Lamber(2001) discussed on “strategic logistics management”
• Krishnaveni muthiah(2002) discussed on “logistics management and world
seaborne trade”
• Sahay and Mohan(2003) discussed on “logistics and supply chain
management in india”
• Andreea Popescu(2006) discussed on “conducting case study research on
operations management”
• Sahay B S(2006) discussed on “the integrated supply chain
management system”
• Chiu(1995) discussed on “ analyzing customer satisfaction and service
using AI techniques”
• Stock and Lambert(2001) discussed on “a knowledge based system to
support procurement decisions “
• Vijaya raghavan (2001) discussed on “impact of transport on logistics
in india”
• Kemthose P Paul(2003) discussed on “real time value chain
management”
1) Fernie and Spark (1998) in their article titled “logistics and retail
management: insights into current practice and trends from leading
experts” explained the importance of technology in enhancing logistics
efficiency. They highlighted the way in which breakthroughs in
technology and IT have contributed in facilitating logistical efficiency in
the distribution network. They mentioned that technological
innovations in material handling and communication can substantially
improve the flow of information through the supply chain.
2) Chiu (1995) examined in the article titled “analyzing customer
satisfaction and service using AI techniques” the critical success factor
in effective logistics management. He opined that the critical success
factors in logistics management include good planning of the logistics
system, a well-designed distribution organization, the prudent selection
of allied companies, a close relationship with trading partners, good
logistics investment analysis, the elimination of barriers to logistics
management, commitment of top management and continuous
improvement in logistics
3) Stock and Lambert (2001) in their article titled “a knowledge based
system to support procurement decisions” explained the importance of
logistics and logistics cost savings of firms. They suggested that logistics
costs savings can have a greater impact on firm`s profitability than
increase in sales volume can. Logistics also plays an equally important
role in generating value advantage by the creation of product’s time
and place utilities.
4) Vijaya raghavan (2001) in the article titled “impact of transportation
infrastructure on logistics in India” focused on the importance of
transportation in logistics. He stated that transportation is the
backbone of the entire supply chain. Transportation makes it possible
for a company to achieve the well- known seven ‘R’s—the Right
product in the Right quantity and the Right condition, at the Right
place, at the Right time for the Right customer.
5) Kemthose P. Paul (2003) in the article titled “real time value chain
management” identified IT as the mainstay of supply chain
management. Planning and control functions performed by logistics
managers rely on quick, accurate and relevant data. So building an
information system for data capture, storage, and use is a pre-requisite
of any good modern supply chain management system. He also
recommends an efficient software system to support a well-designed
supply chain system.
CHAPTER 3 : INDUSTRY & COMPANY
PROFILE
• 3.1 INDUSTRY PROFILE
• 3.1.1 Introduction to retail industry
• 3.1.2 Present scenario of retail industry in India
• 3.1.3 PESTEL analysis
3.1.1 : INTRODUCTION TO RETAIL
INDUSTRY
• Retailing in India is one of the pillars of its economy and accounts for
about 10 percent of its GDP.
•  The Indian retail market is estimated to be US$ 600 billion and one of
the top five retail markets in the world by economic value.
• India is one of the fastest growing retail markets in the world, with 1.2
billion people.
3.1.2 PRESENT SENARIO OF RETAIL INDUSTRY IN INDIA

• The Indian retail industry has emerged as one of the most dynamic and
fast-paced industries due to the entry of several new players.
• Total consumption expenditure is expected to reach nearly US$ 3,600
billion by 2020 from US$ 1,824 billion in 2017.
• It accounts for over 10 per cent of the country’s Gross Domestic
Product (GDP) and around 8 per cent of the employment.
• India is the world’s fifth-largest global destination in the retail space.
• It is projected that by 2021 traditional retail will hold a major share of
75 percent, organized retail share will reach 18 per cent and e-
commerce retail share will reach 7 percent of the total retail market.
3.1.3 PESTEL ANALYSIS
• There are many factors which affect the running of the retail industry ,
and the PESTEL analysis of the industry is as follows:
1. Political
2. Economical
3. Social
4. Technological
5. Environmental
6. Legal
3.2 COMPANY PROFILE OF BIG
BAZAAR
• 3.2.1 Brief history of organization
• 3.2.2 Vision and mission of the company
• 3.2.3 Organization structure
• 3.2.4 SWOT analysis of Big bazaar
• 3.2.5 CSR Policy
• 3.2.6 Achievements and Awards
3.2.1 Brief history of organization
• Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is
one of India's leading business houses with multiple businesses
spanning across the consumption space.
• While retail forms the core business activity of Future Group, group
subsidiaries are present in consumer finance, capital, insurance,
leisure and entertainment, brand development, retail real estate
development, retail media and logistics.
• The first set of Big Bazaar stores opened in 2001 in Kolkata.
Hyderabad and Bangalore.
3.2.2 Vision and mission of the
company
• VISION:
"To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the
most profitable manner.“
• MISSION :
1. We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption
space leading to economic development.
2. We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments — for classes and
masses.
3. We shall infuse Indian brands with confidence and renewed ambition.
3.2.3 Organization structure
3.2.4 SWOT analysis of Big bazaar
• Strengths
Low cost , Cost cutting by reducing intermediaries , Promotional offers on
Wednesday ,Location ,Home delivery facility.
• Weakness
Low customer loyalty , Time gap between order and processing ,Low internal
warehouse capacity , Employees not trained , Less conversion level ,Frauds in retail
• Opportunities
Rural retailing , Kids and teens retailing segment ,Organized retail is only 3% of the
total retailing market in India
• Threats
• Shopping culture ,Uncertainty in market position , New entrants like reliance
3.2.6 Achievements and Awards
• Big bazaar won the best campaign award in online advertising for India’s
first 24hours Facebook live campaign 2018
• Big bazaar won the most admired retailer of the year for digital marketing
campaign 2018
• Big bazaars smart search won gold for mobile search campaign 2018
• Big bazaar won silver for midnight sale campaign 2018
• Big bazaars smart search won the best campaign award in fashion, beauty
and retail category 2018
• Big bazaar and bru coffee and future group and Mc Vitie’s won the award
for the most admired brand retail partnership of the year 2018
 CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION
• The primary data collected through the structured
questionnaire consisting of 25 questions, 13 questions on
customer perception and 12 questions on Logistics
management of Big Bazaar data is analyzed using
percentages and graphs.
1. How often do you visit Big Bazaar

Visiting Big Bazaar

50% 46%
45%
40%
35%
30%
25%
20% 16%
15% 14% 12% 12%
10%
5%
0%
Once a week Twice a week once in a month Twice in a month other
% of respondents
2. Which medium influence you to buy from Big Bazaar

Influence to buy from Big Bazaar

30%
26%
25%
22%
20%
20% 18%
15% 14%
10%

5%

0%
hoardings newspapers tv brouchers others
%of respondents
3. Satisfaction with customer assistance process at Big Bazaar

Customer assistance process in Big Bazaar

60%
50%
50%

40% 36%
30%

20%
12%
10%
2% 0%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

% of respondents
4. Satisfaction with order taking process at Big Bazaar

Order taking process in Big Bazaar

45% 42%
40%
35% 32%
30%
25%
20% 18%
15%
10% 8%
5% 0%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
5. Satisfied with billing system in Big Bazaar

billing system of Big Bazaar

70%
60% 58%
50%
40%
30% 24%
20% 14%
10% 4%
0%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
6. Satisfied with the information about products provided by
employees of Big Bazaar to its customer
satisfaction of customer information provided by employee
60% 56%
50%
40%
30%
18% 22%
20%
10% 4% 0%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
7. Service of discount offered by Big Bazaar attracts impulse buying

discounts offered by Big Bazaar for impulse buying

60%
50% 48%
40%
30%
22% 22%
20%
10% 6%
2%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
8. Goods offered on Big Bazaar are costlier as compare to other
shopping malls

cost of goods with respect to other malls

35% 32%
30% 28%
26%
25%
20%
15%
10%
10%
5% 4%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
9. There is quick response by customer service department in meeting
customer needs

quick response by customer service department

60%
50% 48%
40%
30% 28%
20%
12% 8%
10% 4%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
10. There is immediate replacement of defective products

replacement of defective products

45% 42%
40%
35% 32%
30%
25%
20%
15% 12% 12%
10%
5% 2%
0%
Strongly agree Agree Neutral Disagree Strongly
disagree

%of respondents
11. I feel comfortable while shopping at Big Bazaar
shopping experience at Big Bazaar
60%
52%
50%

40%

30%
22% 22%
20%

10%
4%
0%
0%
Strongly agree Agree Neutral Disagree Strongly disagree
%of respondents
12. Top priority to purchase at Big Bazaar?

reasons to purchase in Big Bazaar

40%
35% 34%
30%
25% 24%
20%
15% 14%
10%
10% 8%
6%
5% 4%
0%
quality price promotional location good brand ambience convinent
goods tools used

%of respondents
13. Overall satisfaction level about services provided by Big Bazaar

satisfaction level at Big Bazaar

70% 64%
60%
50%
40%
30%
22%
20%
12%
10%
2% 0%
0%
very satisfied satisfied neutral dissatisfied very dissatisfied
%of respondents
B. LOGISTICS MANAGEMENT AT BIG BAZAAR
14. On a scale of 1 to 5 rate the importance of logistics quality of Big
Bazaar?
importantance of logistics quality of Big Bazaar
60.00% 54.30%
50.00%
40.00% 37.10%
30.00%
20.00%
10.00% 8.60%
0.00% 0.00%
0.00%
Very important Fairly important Important slightly not at all
important important

% of respondents
15. Is logistics be part of the Big Bazaar strategy

Is logistics part of Big Bazaar strategy

70.00%
62.90%
60.00%
50.00%
40.00%
30.00% 28.60%
20.00%
10.00% 8.60%
0.00% 0.00%
0.00%
Strongly agree Agree Neutral Disagree Strongly
disagree

% of respondents
16. How good is quality warehousing of Big Bazaar?
Warehousing of Big Bazaar
60.00%

50.00% 48.60%

40.00% 37.10%
30.00%

20.00%
11.40%
10.00%
2.90%
0.00%
0.00%
Excellent Very good Good Average Satisfactory
% of respondents
17. Big Bazaar is taking steps to improve the logistics

Big Bazaar is taking steps to improve logistics

60.00%

50.00% 49%
40%
40.00%

30.00%

20.00%
11%
10.00%
0% 0%
0.00%
Strongly agree Agree Neutral Disagree Strongly disagree
% of respondents
18. How often is logistics reviewed at Big Bazaar?

logistics reviewed at big bazar

60.00%

50.00% 48.60%
40.00%
31.40%
30.00%

20.00% 17.10%
10.00%
2.90%
0.00%
Daily Weekly Monthly Quaterly
% of respondents
19. What does Big Bazaar use for quality metrices in logistics?

Big Bazaar use for quality metrics

45%
40%
40%
35%
30%
25% 23%
20%
20%
15% 14%
10%
5% 3%
0%
Cost saving Error free Reliability Timely delivery All the above
% of respondents
20. Big Bazaar uses third party logistics for solving problem?

Big Bazaar uses third party logistics for solving problem

60.00%
50.00% 49%
40.00%
30.00%
20% 20%
20.00%
11%
10.00%
0.00%
Definitely Never Future plans Implementing
different logistics
pans

% of respondents
21. According to you what effects can 3rd party logistics have on your
logistics plan at Big Bazaar?

What effects 3rd party logistics have on your logistics plan

50.00% 45.70%
45.00%
40.00% 37.10%
35.00%
30.00%
25.00%
20.00% 14.30%
15.00%
10.00%
5.00% 2.90% 0.00%
0.00%
Majority Saving time Cost saving Competitive Not
improvement in edge advantageous
efficiency

% of respondents
22. Will you implement 3rd party logistics if it costs more than your
current logistics approach?
Implementing 3rd party logistics if it costs more than your current logistics
40.00% 37.10%
35.00%
30.00% 28.60%
25.00%
20.00%
20.00%
15.00%
14.30%
10.00%
5.00%
0.00%
Definitely Never may be in future Implementing
different logistics
plan

% of respondents
23. What should be the main logistic activity that a 3rd party can be
given ?

logistics activity that 3rd party should improve

60.00%
50.00% 48.60%
40.00%
31.40%
30.00%
20.00% 14.30%
10.00% 5.70%
0.00%
Inventory Transportation and Quality of parts Overall logistics
management delivery process

% of respondents
24. What stage is your company in with regard to collaboration with
third party ?
Collaboration of 3rd party logistics stage
45% 40.00%
40%
35%
30%
25% 22.90%
20.00%
20%
15%
14.30%
10%
5% 2.90%
0%
Information Budgeting Project Vendor No current
gathering planning selsction plans

% of respondents
25. When do your company plan to implement a logistics solution?

implementation of logistics solution

50.00% 45.70%
45.00% 42.90%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00% 8.60%
5.00% 2.90%
0.00%
0-3 months 3-6 months 6-12 months more than 12
months

% of respondents
Chapter V: Findings,
suggestions and
conclusion
• 5.1 Findings

• 5.2 Suggestions

• 5.3 Conclusion
5.1 Findings
• From the study it is found that
• A.CUSTOMERS PERCETION ON BIG BAZAAR
1. Majority that is 46% of the respondents visit Big Bazaar once in a month.
2. Majority of respondents who go to Big Bazaar get influenced by watching advertisement
in TV that is 26%
3. Majority that is 60% of the respondents agree that they are satisfied with the customer
assistance process at Big Bazaar.
4. Majority that is 60% of the respondents agree with the order taking process at Big Bazaar.
5. Majority, 72% of the respondents agree with the billing system at Big Bazaar.
6. Majority that is 74% of the respondents agree with the information provided by
employee at Big Bazaar.
7. Majority that is 76% of the respondents agrees with discounts offered by Big Bazaar for
impulse buying.
8. Majority that is 36% of respondents agree that cost of goods is low
at Big Bazaar when compared to other malls.
9. Majority, 60% of respondents agree that there is quick response by
customer service department at Big Bazaar.
10. Majority that is 44% of respondents agree that there is immediate
replacement of defective products at Big Bazaar
11. Majority that is 74% of respondents agree that they are comfortable
while shopping at Big Bazaar.
12. Majority that is 34% of respondents buy goods due to quality of
goods at Big Bazaar.
13. Majority that is 76% of respondents are satisfied with the
experience Big Bazaar.
• B.LOGISTICS MANAGEMENT AT BIG BAZAAR
14. Majority that is 54.30% of respondents feel that logistics quality is given great
important at Big Bazaar.
15. Majority that is 91.5% of respondents agree that logistics is treated as a part of the
strategy at Big Bazaar
16. Majority that is 48.60% of the respondents feel that warehousing is very good at Big
Bazaar.
17. Majority, 88.60% of respondents agree that Big Bazaar is taking steps to improve
logistics.
18. Majority that is 80 % of respondents says that logistics has been reviewed weekly at
Big Bazaar.
19. Majority that is 40% of respondents says that cost saving is the quality metrics used
at Big Bazaar
20. Majority that is 48.60% of respondents strongly agree for using third party logistics
for solving problem at Big Bazaar.
21. Majority that is 45.70% of respondents feel that third party logistics
is used for saving time.
22. Majority that is 65.40 % respondents feel that implementing 3PL
increases current logistics cost.
23. Majority that is 48.60% of respondents says that transportation and
delivery activity can be given to third party logistics
24. Majority that is 40% of respondents say that collaboration of third
party logistics is at due information gathering stage.
25. Majority that is 45.70% of respondents says it takes 3-6 months to
implement logistics solution.
5.2 Suggestions
The following are the suggestions that are been given for the improvement of logistic
activities at Big bazaar
COUSTMERS PERCEPTION
• Promotion activity about Big Bazaar can be provided by creating more visibility
using social media (facebook,instagram,twitter)
• Customer assistance process, order taking process, billing system need to improve
to attract customers.
• Customer service needs improvement as 60% of the respondents feel that there is
quick response by customer service department.
LOGISTICS MANAGEMENT
• Third party logistics in transportation can be implemented as early as possible to
save the cost and improve the customer service.
• Big Bazaar can go for 2 to 3 warehouses in state for quick delivery of the goods
5.3 Conclusion
• From the analysis of the data it can be concluded that Big
Bazaar manages its logistics activities effectively but can be
managed more effectively with the implementation of third
party logistics. Consumers are satisfied with the products of
big bazaar. Employers are satisfied with the way how the
logistics had taken place in big bazaar. Big Bazaar has a good
brand value in the market due to its variation of products
and house hold needs food fashion, vegetables, electronics
etc.
THANK YOU