A STUDY OF LOGISTICS AND ITS RISK MANAGEMENT OF

BIG BAZAAR

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

SHRADDHA SHASHIKANT SHETYE

Under the Guidance of

MRS. VASANTI SHENOY

Late Shri Vishnu Waman Thakur Charitable Trust‟s

Bhaskar Waman Thakur College of Science,

Yashwant Keshav Patil College of Commerce,

Vidhya Dayanand Patil College of Arts.

VIVA COLLEGE

(NAAC ACCREDITED- „B‟ GRADE, CGPA 2.69)

ACADEMIC YEAR 2018-2019

 Bhaskar Waman Thakur College of Science,
Yashvant KeshavPatil College of Commerce,
VidhyaDayanandPatil College of Arts,
VIVA College

CERTIFICATE

This is to certify that Ms. Shraddha Shashikant Shetyehas worked and duly completed her
project work for the degree of Bachelor in Commerce (Accounting & Finance) under the
faculty of commerce in the subject of finance and her project is entitled, “A study of
Logistic and Risk Management of Big Bazar” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

Name of Guiding Teacher:

Ms. Vasanthi Shenoy

Signature :

Date of submission :

Signature :
External Examiners
 DECLARATION

I undersigned Ms. Shraddha Shashikant Shetye hereby, declare that the work
embodies in this project work titled “A study of Logistic and Risk Management of
Big Bazar” forms my own research work carried out under the guidance of Mrs.
Vasanti Shenoyis a result of my own research work and has not been previously
submitted to any other University for any other Degree /Diploma to any other
University.

Wherever reference has been made to previous work of other it has been clearly
indicated as such and included in bibliography.

I hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct .

Shraddha Shashikant Shetye

Certified by

Mrs. Vasanti Shenoy

signature
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimension in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project

I would like to thank my Principal, Mr.A.P.Pandeyand Vice Principal, Mrs.

PrajaktaParanjapefor providing the necessary facilities required for completion of
this project.

I take this opportunity to thank our coordinator Dr. AudirnColaso, for his moral
support and guidance.

I would also like to express my sincere gratitude toward my project guide

Mrs.VasantiShenoy whose guidance and care made the project successful.

I would like to thank my college library ,for having provided various reference book
and magazines related to my project.

Lastly ,I would like to thank each and every person who directly or in dirtectly helped
me in completion of project especially my parents and peers who supported me
throughout my project.
 INDEX

Page
SR.NO. CONTENT
no.
CHAPTER I INTRODUCTION TO LOGISTICS 1- 9

1.1 Origin and definition of logistics

1.2 Meaning
1.3 Logistical mission
1.4 Logistical activities
1.5 Flow and element of logistics
1.6 Risk management
1.7 Business objective of risk management

CHAPTER II OBJECTIVE OF STUDY 10

CHAPTER III REVIEW OF LITERATURE

CHAPTER IV LOGISTIC AND RISK MANAGEMENT 11- 52

OF BIGBAZAAR VIRAR: RESEARCH
METHODOLOGY
4.1 Introduction
4.2 Companies profiles
4.3 Futures conglomerates
4.4 Company history
4.5 Vision and mission
4.6 Retail industry of future group
4.7 Future supply chain solution ltd
4.8 SWOT analysis of big bazaar
4.9 Research methodology
4.10 New services
4.11 Warehousing location of big bazaar in Maharashtra
4.12 Analysis of the study
4.13 Risk management of logistics
4.14 Recommendation

CHAPTERS V CONCLUSION 53

ANNEXURE
 I. INTRODUCTION TO LOGISTICS:

1.1 Origin of Logistics:

The term logistics is derived from the Greek word “logistiki”. It is said to be
originated from Military. Logistics is the application of time and space factor to war
and consists of ― the three big ‗M‘s of Warfare – Material, Movement, and
Maintenance.‖

In war, it is very important to have war supplies such as arms, ammunition, food
water, fuel etc. to armies fighting on boundaries in remote area.

Similarly, the success of a business organization depends on the ability of the

organization to manage its supply chain of raw materials and finished goods and
provide acceptable level of customer service. The minimum acceptable level of
customer service is achieved when the customers get the product of their choice as
and when they want it.

In other words, to get the right product in the right place at the right time.

Definition of Logistics:

―Logistics is the process of planning, implementing and controlling the effective flow
and storage of goods, services and related information from the point of origin to the
point of consumption for the purpose of conforming to customer requirement."

1.2 Meaning of logistics:

Logistics is concerned with getting the product and services where they are needed
and when they are desired. It is difficult to accomplish any marketing or
manufacturing without logistical support. It involves the integration of information,
transportation, inventory, warehousing, material handling, and packaging.

The operating responsibility of logistics is the geographical repositioning of raw

materials, work in process and finished inventories where required at the lowest cost
possible to support number of activity which can be performed to meet defined goal.

1
The current challenge is to perform logistics scientifically in order to optimize
benefits to the organization. Logistics is planning function of management. Logistics
function is concerned with taking products and services where they are needed and
when they are needed.

Logistic management :

Logistics management is that part of the supply chain which plans, implements and
controls the efficient, effective, forward and backward (reverse) flow and storage of
goods, services and information between the point of origin and the point of
consumption in order to meet customer‗s requirements rather to the customers
delight.

A professional working in field of logistics management is called a logistician

Logistics, as a business concept evolved only in the 1950s. This was mainly due to the
increasing complexity of supplying one‗s business with materials, and shipping out
products in an increasingly globalize supply chain, calling for experts in the field who
are called supply chain logisticians.
This can be defined as having the right item in the right quantity at the right time at
the right place for the right price and to the right target customers and it is the science
of process having its presence in all sectors of the industry. The goal of logistics work
is to manage the fruition of project life cycle, supply chains and resultant efficiencies.

1.3 Logistical mission :

Logistical mission is to plan and co-ordinate all those activities necessary to achieve
desired level of customer service while minimizing total operational cost .

Logistical Mission is divided into two parts:

2
1.Service:

Almost any level of logistical service can be achieved if a firm is willing to commit
the necessary resources .Logistical service is a balance of service priority and cost .
Basic logistical service is measured in term of :

i. Availability means having necessary level of inventory to consistently met the

customer requirement of finished goods.

ii. Operational performance involves delivery speed and consistence. It represents

the speed of order delivery on consistent basics.

iii. Service reliability involves satisfaction of customer as his requirement are

fulfilled on time.

2. Total cost:

Total cost is a consolidation of all types of cost which includes cost such as
transportation, storage, order processing, communication etc.

If we try to reduce cost in one logistic function eg. Transportation cost , then it will
affect the other logistic function eg. Warehouse cost as we will need to maintain
excess stock.

Hence, it is necessary for firm to relate the logistics cost with the service level and
provide the service level which ensures profitability of operations.

1.4 Logistics Activities and fields :

Inbound logistics
It one of the primary processes of logistics concentrating on purchasing and
arranging the inbound movement of materials, parts, or unfinished inventory from
suppliers to manufacturing or assembly plants, warehouses, or retail stores.

Outbound logistics

It the process related to the storage and movement of the final product and the
related information flows from the end of the production line to the end user.

3
Given below services performed by logisticians, the main fields of logistics can be
broken down as follows:

1.Procurement logistics:

It consists of activities such as market research, requirements planning, make-or-buy

decisions, supplier management, ordering, and order controlling. The targets in
procurement logistics might be contradictory: maximizing efficiency by concentrating
on core competences, outsourcing while maintaining the autonomy of the company,
or minimizing procurement costs while maximizing security within the supply
process.

2.Advance Logistics:

It consists of the activities required to set up or establish a plan for logistics activities
to occur.

3.Distribution logistics:

It has, as main tasks, the delivery of the finished products to the customer. It consists
of order processing, warehousing, and transportation. Distribution logistics is
necessary because the time, place, and quantity of production differs with the time,
place, and quantity of consumption.

4.Disposal logistics:

It has as its main function to reduce logistics cost and enhance service related to the
disposal of waste produced during the operation of a business.

5.Reverse logistics:

Reverse logistics stands for all operations related to the reuse of products and
materials. It is "the process of planning, implementing, and controlling the efficient,
cost effective flow of raw materials, in-process inventory, finished goods and related
information from the point of consumption to the point of origin for the purpose of
recapturing value or proper disposal. The opposite of reverse logistics is forward
logistics."

4
6. Green Logistics

It describes all attempts to measure and minimize the ecological impact of logistics
activities. This includes all activities of the forward and reverse flows. This can be
achieved through intermodal freight transport, path optimization, vehicle saturation
and city logistics.

7.RAM Logistics

It combines both business logistics and military logistics since it is concerned with
highly complicated technological system for which Reliability, Availability, and
Maintainability are essential, ex: weapon systems and military supercomputers.

8. Asset Control Logistics:

It isa companies in the retail channels, both organized retailers and suppliers, often
deploy assets required for the display, preservation, promotion of their products.
Some examples are refrigerators, stands, display monitors, seasonal equipment, poster
stands & frames.

10.Digital logistics

It is driven by a new generation of web-based, enterprise logistics applications that

enable collaboration and optimization, leveraging a central logistics information
backbone that provides visibility across the enterprise and extended supply chain.

5
1.5 Flow of Logistic :

1.Raw
material/
services

2.Supplier
6.Consumer

5.Retailer 3.Manufaturer

4.Transportation

Elements of Logistic mix :

Warehousing : Warehousing is an integral part of every logistics system.
Warehousing can be defined as the part of a supply chain that stores products (raw
materials, parts, work-in-process and finished goods) at and between points of
production and points of consumption, and also provides information to management
on the status and disposition of items being stored.

Transportation :The importance of inventory management and the relationship

between inventory and customer service is essential in any company. As for the
location issues, inventory management has been well studied in OR literature;
however, the use of inventory systems in helping decision-making processes has been
less widespread.

Material Handling : Material handling is a broad area that basically encompasses all
activities relating to the movement of raw material, work in process or finished goods
within a plant or warehouse. Moving a product within a warehouse is a no value-
added activity but it incurs a cost.

6
Order picking :Order processing or picking basically includes the filling of a
customer order and making it available to the customer. These activities can be quite
important since they have an impact on the time that it takes to process customer
orders in the distribution channel or to make supplies available to the production
function.

Packaging :Packaging is valuable both as a form of advertising and marketing, as

well as for protection and storage from a logistical perspective. Packaging can ease
movements and storage by being properly designed for the warehouse configuration
and material handling equipment.

1.6 Risk Management :

Recently, risk management has been widely discussed especially when many
disturbance events happened such as earthquakes, Iceland‘s volcano eruption, labor
wage increasing in India , or oil leak and so on.
Each disturbance may affect business operations and need to adjust their logistics
system to deal with it. The impact of accidental events can be controlled if the
enterprise has a plan put in place already.
In general, risk management can be classified into two approaches, one is mitigation
strategy and another is contingency strategy.
 Mitigation action is managing the risk sources and
 contingency action is handling the risk consequences.
In order to minimize the impact of uncertain events, enterprise needs to prepare for
the disruption may occur, and do actions to lower the likelihood of a disruption or
reduce the level of impact if the risk cannot be avoided. When an enterprise is being
attacked by a risk, how can be back to normal in a quick way and minimize the losses
that would rely on a well contingency strategy plan and its capability.

1.7 Business objective for risk management :

1. Risk Governance :
Ensure that risk management practices are embedded in the enterprise
,enabling it to secure optimal risk – adjusted return.
 Integrate with ERM
 Establish and maintain a common risk view

7
  Make risk aware business decisions
2. Risk Evaluation :
Ensures that risks and opportunities are identified, analysed and presented in
business terms.
 Analyze risk
 Collect data
 Maintain risk profile
3. Risk Response :
Ensure that risk issues, opportunities and events are addressed in a cost –
effective manner and in line with business priorities
 Manage Risk
 Articulate Risk
 React to Events

8
 II . OBJECTIVE OF STUDY

 To know the effectiveness of logistics management of Big Bazaar and to

bench mark the organization with respect to the industry.

 To understand role of logistics system in functionality of Big Bazaar .

 To evaluate the image of Big Bazaar in customers mind.

 To find out the customer satisfaction with the existing services.

 Scholar can refer and get knowledge regarding logistics.

9
 III. REVIEW OF LITERATURE

The review of previous literature provided in this paper is intended to provide

somewhat of a chronological ordering of research topics and to identify important
areas that have contributed to our knowledge base.

Bamford, 1999: 302: The literature review in this chapter has been divided into two
main parts. The first part reviewed the literature on theoretical concepts including
definitions of supply chain management, distribution management, and related
concepts. The second part reviews the competitive advantage in the international
trade.
This part of reviewing literature undertakes the relevant theoretical concepts to the
purpose of establishing a basic background for understanding the supply chain
management, logistics, distribution concepts, by tracking the evolution, definitions
and debates related to the subject and its practice from several books published on the
concept in addition to substantial numbers of journal articles.
Supply chain management has generated a substantial amount of interest both among
managers and researchers. Supply chain management is now seen as a governing
element in strategy and as an effective way of creating value for customers. Supply
chain management benefits from a variety of concepts that were developed in several
different disciplines such as marketing, information systems, economics, system
dynamics, logistics, operations management, and operations research. There are many
concepts and strategies applied in designing and managing supply chains.

John etal. (2006) critically assessed the current developments in the theory and
practices of SCM. Their study revealed that SCM is the best and still emergent in
terms of both theory and practice. The range of key barriers and enablers to SCM has
been identified and concluded with an assessment of the main trends. Li et al. (2004)
provided managers of SCM with a useful tool for evaluating the comprehensiveness
of their current SCM practices in a firm. Their findings supported the view that SCM
practices can have evident impact on the competitive advantage and organizational
performance.

10
Sukati et al. (2011) conducted a research with the aim to add knowledge on SCM
practices by exploring the relationship between strategic supplier partnership,
customer relationship, information sharing and supply chain responsiveness. Their
findings have shown that managers should improve information sharing effectively,
so that competitive advantage of supply chain can be increased to improve the firm
performance.

Chang-Ing and I-Jin (1999) show the relation between average logisticscost per
item, consumer demand and the interrelationship between them are analyzed.
Commodities are distributed through a depot directly or throughsingle intermediate
terminal to many retail establishments. Minimizingaverage logistics cost, or
maximizing total supply subject to the demand supply equality determines the
optimal density of retail establishments andlocal terminals. The envelope curves for
the optimal configuration strategiescorresponding to different values of total market
area and terminal cost arederived.

Aronssonetal (2000) have developed a template for a logistics education course. The
template addresses functional, process and supply chain needs. The template is
currently being prototyped with the principle of ‗gestalt‘- the whole is greater than
the sum of the individual parts.

Outi (2000) studied logistics costs of industrial enterprises in a supply chain. The
following aspects of logistics costs are included:
a) Activity Based Costing (ABC)
b) Average logistics Costs of industrial product manufacturers and suppliers
c) The factors which influence a company‘s cost efficiency in logistics
d) An ABC simulation model for the logistics costs in a company
A study on ―Logistics of small-size deliveries‖ has been carried at the Technical
Research Center of Finland. Seventeen enterprises participated in this study. In this
study a calculation model was developed and tested with the logistics costs of the
participating companies.

11
IV. LOGISTIC AND RISK MANAGEMENT OF BIG BAZAAR

Abstract
In today‘s highly competitive global marketplace, the pressure on organizations to
find new ways to create value and deliver it to their customers grows ever stronger. In
the last two decades, the logistics function has moved to center stage. There has been
a growing recognition that effective logistics management throughout the firm and
supply chain can greatly assist in the goal of cost reduction and service enhancement.

The keys to success in Logistics Management (LM) require heavy emphasis on

integration of activities, cooperation, coordination and information sharing throughout
the firm and the entire supply chain, from suppliers to customers. To be able to
respond to the challenge of integration, modern businesses need sophisticated
decision support systems based on powerful mathematical models and solution
techniques, together with advances in information and communication technologies.

Big Bazaar has emerged as one of the leading retail chain stores in India for food,
general merchandise and home products. The success mantra for Big Bazaar has been
to provide quality products at the cheapest prices. And it depends on its efficient
supply chain to squeeze out profits, which it further passes onto the customers. Big
Bazaar deals with four different categories of supply chains – food, fashion, general
merchandise and home, the most critical is the food supply chain.
Keywords: food supply chain, logistics management, and distribution.

12
4.1 Introduction
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in
operation. It is a subsidiary of Future Group Venture Ltd's, and follows the business
model of United States-based Wal-Mart.

Big Bazaar is led by Pantaloon Retail, the group‘s flagship company, and the
company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other
formats, in over 70 citiesacross the country, covering an operational retail space of
over 6 million square feet.

The company follows a multi-format retail strategy that captures almost the entire
consumption basket of Indian customers. In the lifestyle segment, the group operates
Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value
segment, its marquee brand, Big Bazaar is a hypermarket format that combines the
look, touch and feel of Indian bazaars with the choice and convenience of modern
retail.
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic
expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in
Kolkata Hyderabad and Bangalore.

The group‘s speciality retail formats include supermarket chain – Food Bazaar,
sportswear retailer - Planet Sports, electronics retailer – e -Zone, home improvement
chain - Home Town and rural retail chain, Aadhaar, among others. It also operates
popular shopping portal - www.futurebazaar.com.

This large format store comprise of almost everything required by people from
different income groups. It varies from clothing and accessories for all genders like
men, women and children, playthings, stationary and toys, footwear, plastics, home
utility products, cosmetics, crockery, home textiles, luggage gift items, other
novelties, and also food products and grocery. The added advantage for the customers
shopping in Big Bazaar is that there are all time discounts and promotional offers
going on in the Big Bazaar on its salable products.

13
Shopping in the Big Bazaar is a great experience as one can find almost everything
under the same roof. It has different features which caters all the needs of the
shoppers.

Some of the significant features of Big Bazaar are:

 The Food Bazaar or the grocery store with the department selling fruits and
vegetables

 Furniture Bazaar or a large section dealing with furniture

 Electronics Bazaar or the section concerned with electronic goods and cellular
phones

 FutureBazaar.com or the online shopping portal which makes shopping easier

as one can shop many products of Big Bazaar at the same price from home

 Cake and chocolate department and all other baked product for attraction of
customer.

4.2 Companies profile

Future Group

Future Group is the country's leading retail business group that caters to the entire
Indian consumption space. It operates through six verticals: Future
Retail (encompassing all lines of retail business), Future Capital (financial products
and services), Future Brands (all brands owned or managed by group companies),
Future Space (management of retail real estate), Future Logistics (management of
supply chain and distribution) and Future Media (development and management of
retail media spaces).

The group's flagship company, Pantaloon Retail (India) Limited operates over 5
million square feet through 450 stores in 40 cities. Some of its leading retail formats
include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, EZone,
Depot, Health & Beauty Malls and online retail format, www.futurebazaar.com.

The group's joint venture partners include Italian insurance major, Generali, French
retailer ETAM group, US-based stationary products retailer, Staples and UK-based
Lee Cooper and India-based Talwalkar's, Blue Foods and Liberty Shoes.

14
Future Group is working on the vendor network as well as the logistics network. The
company has identified up to 40 anchor vendors, each with turnovers of US$45
million, to achieve economies of scale. The group is also keen to ensure that its
smaller vendors are able to reach turnovers of around US$1 million and a growth rate
of 40% annually, to be able to pass on the benefits of scales. The company is also
working towards bringing its 1,200 vendors online, like Wal-Mart.

Going further in this direction, the Future Group has also launched Future
Logistics initially aimed at handling the supply chain logistics of the group. However,
sensing immense opportunity in this area, the company is now looking to offer its
services to its 1000-odd vendors, spread across consumer related goods, to reach a
targeted turnover of about Rs.700 crore by 2010.The thrust at present will be on
modes of surface transport like roads and rail only. However, at a later stage, sea and
air modes might also be considered as per the requirement, said sources.

In India, Future group derives significant economies of scale in managing their supply
chain. With more than 170000 products, the company maintains a strong supplier
relationship in a partnership mode, avoiding the exploitative supplier – buyer
transactional philosophy. The IT enabled back-end operations and supply chain
management increases the reliability and efficiency of the business.

As part of the operation, Future Group is also undertaking to reduce its warehousing
costs through a consolidation process. In a country like India, where most retail stores
are located in the heart of the city—where rents are high and storage space is scarce—
supply chain management has even more serious business implications. Future
Logistics now handles two-and-a-half million SKUs (or stock keeping units) a day
across the Future Group's various retail formats around the country. By 2010, this
number is expected to increase to more than 30 million SKUs a day. Even with 98%
accuracy, some 600,000 pieces will not be delivered correctly, resulting in an
estimated sales loss of more than Rs 4 crore a day.

The biggest driver in consumer logistics is going to be zero defect in managing the
supply chain. While infrastructure, technology, automation, processes and people will
all play an important role, zero defect can only be achieved through vertical
integration across the entire supply chain—from raw material supply, production,
wholesale and retail. The different parts of the supply chain will no longer be able to
work in silos as they do today.
15
 Company Details
Type : Private

Industry : Retailing, insurance, logistic, media.

Founder: Kishore Biyani (CEO)

Headquater: Mumbai, India

Product : Integrated foods and other FMCGs

Service: supermarket, hypermarket, discount stores, insurance,

logistics, media.

Net income: Rs.200.6018 billion (US$ 2.8 billion as of March

2013

Numbers of
employees: 4,56,920
Division : future Retail ltd. ,future Life style fashion Ltd.

Future consumer enterprise Ltd. , future innoversity

ltd, future supply chain management ltd ., future
capital holding ltd

Website: www.futuregroup.in

www.futurebazaar.com

16
 BOARD OF DIRECTORS

Mr. Kishore Biyani : Managing Director

Mr. GopikishanBiyani : Whole Time Director

Mr. RakeshBiyani : CEO – Retail VedPrakashArya, Independent Director

Mr. Shailesh Haribhakti : Independent Director

Mr. S.Doreswamy : Independent Director

Dr. D.O.Koshy : Independent Director

Ms. AnjuPoddar : Independent Director

Ms.BalaDeshpande : Independent Director

Mr.AnilHarish : Independent Director

17
4.3 Future Group conglomerate

Future Group has six business pillars:

Future Retail

All the retail lines of business like food fashion and home will come under this
vertical.

Future Brand

Custodian of all the present and future brands that are either developed or acquired by
the group.

Future Space

Will have a presence in property and mall management.

Future Capital

Will provide consumer credit and micro finance services, including marketing of MFs
and insurance policies, and management of real estate and consumer fund.

Future Media

Will focus on revenue generation through effective selling of retail media spaces.

Future Logistic

To drive efficiencies across businesses via better storage and distribution.

4.4 Company history

1987
The company is incorporated under the name of Manz Wear Private Ltd.
Pantaloons, one of India's first formal trouser brands, is launched.

1991
Company's name changed to Pantaloon Fashions (India) Limited
BARE, an Indian denim brand is launched.

18
1992
Initial Public Offer (IPO) of shares by the Company

2001
Pantaloon Retail launches three Big Bazaar stores within a span of 22 days in
Kolkata, Bangalore and Hyderabad.

2002
Food Bazaar, the supermarket chain is launched.

2003
Big Bazaar entered Tier II cities with the launch of its store in Nagpur

2004
Pantaloon Retail launches India's first seamless mall, Central, in Bangalore.

2005
Big Bazaar launched a unique shopping program: the Big Bazaar Exchange Offer,
inviting customers to exchange household junk

2006
Big Bazaar launched India's most popular shopping festival: SabseSasta Din on 26th
January
Big Bazaar launched Shakti, India's first credit card program tailored for housewives

2011
Future Group entered elite gourmet retailing with the launch of its first gourmet food
chain Foodhall in Mumbai on 26th May 2011
Big Bazaar completed 10 glorious years and came up with a new brand identity and
tagline Naye India kanayabazaar
Big Bazaar celebrated its 10 years of existence

19
2012
Pantaloons joined hands with PAYBACK . Being India's largest and one of the
strongest loyalty programs in Europe, PAYBACK offers were made available to all
Pantaloons customers
Big Bazaar launched its home delivery services in Mumbai

Big Bazaar introduced an exciting occasion for shopping 'April Utsav'.

Future Group officially launched India's largest State of the Art Logistical
Distribution Hub at Nagpur.
Big Bazaar introduced a unique customer membership program 'Big Bazaar Profit
Club.'

2014
Future Group partnered with the Fortune 500 company and one of the largest online
shopping destination, Amazon
Future Group partnered with world's leading customer science company, dunnhumby
for data analytics services
Future Group announced its strategic tie-up with SAP company hybris, that delivers
OmniCommerce™: state-of-the-art master data management for commerce and
unified commerce processes to its clients.
 India's First Mega Food Park was inaugurated by India's Honourable PM
ShriNarendraModi at Tumkur Karnataka

2015
FBB became style partner of Asia's largest music festival, Sunburn
Big Bazaar & E zone made to the Brand Equity's Top Retailer's List
Future Group partnered with India's fastest growing ayurvedic company, Patanjali
Ayurved.
The Miss Universe from Columbia, Paulina Vega launched Jealous 21's limited
edition Miss Universe Collection at Taj Land's End in Mumbai
First Big Bazaar GEN NXT store designed for smart and easy shopping experience
opened in Infinity Mall, Malad, Mumbai

20
Big Bazaar announced an exclusive tie-up with a leading mobile wallet company,
MobiKwik
Big Bazaar redefines weekends with the launch of a never-seen-before campaign,
'Crazy Weekend'.
Future Group launched the new age convenience store format, KB's Conveniently
Yours.

2016
Future Group associated with Bajaj Finserv to launch India's first retail EMI card
Central @ Residency Road, Bangalore was launched with redesigned to provide
hassle free shopping for the customers
Little Foodhall launched in Gurgaon
Bazaar Direct tied-up with Oxigen Services to sell the wide assortment of the
franchisees.
Future Group's personal care brand, Kara Wipes associated with the most prestigious
beauty pageant of the country; fbbFemina Miss India 2016.
Future Group's People Office team receives ISO 9001: 2015 certification on Jan 5,
2016.

4.5Vision and mission

Future Group's Vision

"To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the
most profitable manner."

One of the core values at Future Group is, 'India ness' and its corporate credo
are "Rewrite rules, Retain values.‖

Future Group's Mission:

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.

21
We will be the trendsetters in evolving delivery formats, creating retail realty,
making consumption affordable for all customer segments for classes and
masses.
We shall infuse Indian brands with confidence and renewed ambition.We shall be
efficient and, cost-conscious and committed to quality in whatever we do.

We shall ensure that out positive attitude, sincerity, humility and united determination
shall be the driving force to make us successful.

Core Values :

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.
Respect & Humility: to respect every individual and be humble in our conduct.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.

4.6 Retail industry of future groups: Big Bazaar of Virar

Retail is India's largest industry accounting for over 10 percent of the country's GDP
and around 8 percent of the employment.

The market size of Indian retail industry is about US $312 billion.

Supply logistic in big bazaar occurs by two methods:

Internal
Supplier Warehouse
warehouse
1.

This type of supply chain is used in crockery items andother durable goods.

22
 Vendor Big Bazaar
2.

This type of supply chain is used in food items and other FMGC.

4.7 Future supply chain solution ltd

FSC (Future Supply Chain Solutions Ltd.) is India's first fully integrated and IT
enabled end- to- end Supply Chain and Logistics service provider in India. It provides
services to large corporates in Food & FMCG; Apparels, Footwear & Accessories;
Consumer Electronics & Hi- Tech; Automotive; Pharma and Light Engineering
domain.
Promoted by Future Group and Fung Capital, FSC has been a pioneer in modernizing
supply chain and logistics by implementing global best practices in the Indian context.
This has enabled FSC to provide customized Supply Chain Solutions & Services
which reduce Time- to- Market™ and Cost- to- Market™ of customers
Future Supply Chains Offerings:-

FSC Supply Chain Solutions

FSC Supply Chain Solutions team studies the business imperatives of customers and
designs customized supply chain solutions in collaboration with the customers like:
 Supply chain consulting to define business needs and logistics opportunities.
 Distribution and Transportation network analysis and design
 Warehouse and Facility modeling and layout, including evaluation of Infrastructure
and mechanization needs
 Evaluation and implementation of Technology.
 Labor management opportunity assessment.
 Operational analysis and improvement
 3PL capabilities of high-end Warehousing, Express and Customized Movement
Solutions.

23
 FSC Supply Chain Services

FSC‘s Service offerings include:

FSC Contract Logistics (Warehousing and Distribution )
 GST Ready Network across all High Growth Consumption Clusters of India
 Facilities are Built-to-Suit, Multi-user and Scalable
 Deploying global best practices in Technology & Automation; Indianising and
Indigenising to suit Indian conditions
 Robust Distribution & Last Mile Fulfillment Network, providing end- to- end
solutions

FSC Express Logistics (Express transportation services)

 Safe, secure & all-weather movement through a dedicated fleet of containerised

vehicles.
 Online, Real time consignment tracking through GPS enabled Vehicle Tracking
System
 24/7, Online Customer Portal which gives end- to- end visibility from pick- up to
delivery

4.8 SWOT analysis of big bazaar

Strengths in the SWOT analysis of Big Bazaar :

 High brand equity enjoyed by Big Bazaar

 State of the art infrastructure
 A vast variety of stuff available under one roof
 Everyday low prices, which attract customers
 Maximum percent of footfalls converted in sales
 Huge investment capacity
 Biggest value retail chain in India
 It offers a family shopping experience, where entire family can visit together.
 Available facilities such as online booking and delivery of goods.

24
Weaknesses in the SWOT analysis of Big Bazaar :

 Unable to meet store opening targets on time

 Falling revenue per sqft
 General perception: ‗Low price = Low quality‘
 Overcrowded during offers
 Long lines at billing counters which are time consuming
 Limited only to value offering low price products. A no of branded products
are still missing from Big Bazaar‘s line of products. E.g. Jockey, Van heusen.

Opportunities in the SWOT analysis of Big Bazaar :

 A lot of scope in Indian organized retail as it stands at approximately 4%.

 Increasing mall culture in India.
 More people these days prefer to visit big stores where they can find large
variety under one roof.

Threats in the SWOT analysis of Big Bazaar :

 Competition from other value retail chains such as Reliance (Fresh and
trends), Hyper city and D mart.
 Unorganized retail also appears to be a threat to Big Bazaar‘s business. A
large population still prefers to visit local convenient stores for daily purchases
 Changing Government policies
 International players looking to foray India

25
4.9 Research Methodology :
Data source
1.Primary Data: -
It is collected through questionnaire, direct observation of customer.
Sampling Plan:
Sampling Unit: - Customers visting to Big Bazaar
Sampling size: - 40 units.
Data collection tools :
The questionnaires consisted of

 Multiple choice questions

Secondary Data :
Referred data already published and certain books , articles, big bazaar and future
group websites.

Tools of Analysis for this study :

The results were analysed with the help of statistical tools such as bar graph, pie -
chart ,etc, have been used to analyze the data and to measure the consumer
satisfaction level from big bazaar logistics.

Scope of study :
It focus on customers attraction and consumers satisfaction through big bazaar
logistics as the end point of logistic management.

26
4.10 New services offered by Big Bazaar

Future Group's Big Bazaar brings new recipe to boost sales :

Future Group's Big Bazaar is making its biggest move into Indian households yet.

Big Bazaar is not just retailing grain, but grinding it, kneading the dough and even
making chappatis for its consumers-at no extra cost.

Such services, including de-seeding pomegranate, grating coconut as well as cutting

pineapple and jackfruit on the spot, are presently offered only at its prototype Rajaji
Nagar store in Bangalore, but will soon be rolled out in all the 12 family Big Bazaar
outlets across the country.

"The idea is to take care of all the pains of cooking, to reduce the negative labour that
families do not typically reward the women for," says AshniBiyani, director of Future
Ideas, the innovation and incubation cell of Future Group.

"The consumer is familiar with modern retail and is willing to move to the next level,"
adds Future Group Founder and Group CEO Kishore Biyani's only child.

Industry watchers say the move will help Future Group, which launched value
retailing a decade ago, win the loyalties of working women, students and singles with
the new services.

"This will help the company not just be relevant to consumers as international
competition increases, but also in smaller cities such as Aurangabad, where the
consumer may expect such services," says Raghav Gupta, principal at management
consulting firm Booz & Co.

Big Bazaar has a team of 'sevaks' at the Rajaji Nagar store, which opened doors on
Wednesday, to offer different kinds of additional services.

If it's vegetables, they can be diamond cut, in cubes, for salad or sambar as per choice
and zipped into a bag or chutneys can be whipped up.

27
The store also has a tailor to stitch curtains and a vendor to dry clean carpets and
provide after sales services for electronics.

Future Group has also opened an office for citizen service centre Bangalore One,
which allows consumers to pay utility bills within the store.

With grain, the store allows the consumer to buy, for instance, a kg of multi-grain
such as wheat, jowar and bajra. Once billed, the consumer has the option of getting it
ground, kneaded into dough and even made into chappatis either for the full weight or
in parts.

4.11 Warehousing location of big bazar in maharashtra

Future Group :
Jogeshwari - Vikhroli Link Rd, Shyam Nagar, Jogeshwari East, Mumbai, Maharashtra
400060

Future Group supply chain solution :

C/o. A2, twin city glass, taloja, midcrd, taloja, navimumbai, maharashtra 410208

Future Supply Chain Solutions Ltd K-4

Kalyan Bhiwandi Rd, Bhadwad Gaon, Sonale Village, Bhiwandi, Maharashtra
421302

Future Group Warehouse:

Shiv Colony, Dhankawadi, Pune, Maharashtra 411046

Future Value Retail Limited

Thakur Mall, Lion Pencil Compound, East Mira Road, Western Express Hwy, Near
Dahisar Check Naka, Ketkipada, Dahisar East, Mumbai, Maharashtra 401104

28
4.12 Analysis of the study

1.The way of awareness among the people about big bazaar in virar :

Interpretation :

According to analysis it shows that people are majorly aware about big bazaar
through electronic media it is 40% ,followed by mouth to mouth publishing 32.5%
And then print media and hoardings with 15% and 32.5% respectively.

2.Reason behind customer shopping at big bazaar :

Interpretation:
According to analysis the reason mainly behind customer shopping at big bazaar is
various offer i.e.45% and secondly quality of product with 40% and easy availability
of product with 37.5%and lastly, 2.5% through prices.

29
 3. The offer during which people mostly shop in big bazaar :

Interpretation:
Analysis states that , customer at large shop during monthly bachat bazaar is 42.5%
And sometime prefer weekend offer with 37.5% and rarely refer Wednesday bazaar
with 27.5%.

4. Customers consumption pattern and big bazaar :

Interpretation:
It states, that customers prefer purchasing clothes at big bazaar for its good quality
with 47.5% and secondly purchase groceries with 42.5% followed by other item such
as furniture , electronics etc with 15% then 7.5% demands stands for accessories.

30
5. Customers satisfaction from big bazaar‘s logistics management :

Interpretation :

Analysis clearly states that big bazaar‘s is having 87.5% i.e. more than 50% of
satisfied and happy customers and still is required to satisfy its 12.5% of
unsatisfied customer.

6. Customers feedback for improvement in big bazaar supply chain logistics :

Interpretation:
Analyses states that, 50% customers wants improvement in staff knowledge
in big bazaar and 30% wants improvement in time management regarding its
deliveries and after sales service. And certain improvement is needed in
cashier speed .

31
7. The Eleventh Annual Report of the Company together with the Audited Financial
Statements for the financial year ended March 31, 2018.

Financial highlights:

The financial performance of the Company is as follows:

Review of performance :

During the financial year, the Company had a total income of ` 18,489.64 Crore. The
total expenditure during the financial year amounted to ` 17,874.46 Crore resulting in
profit before exceptional item and tax of ` 615.18 Crore as compared to profit of `
368.28 Crore in previous year. The Profit after Tax for the year under review is `
11.31 Crore after adjusting non-cash exceptional item of` 603.87 Crore.

Future groups expense on various department such as :

FMCG, insurance, warehousing & logistics, media, textile sand online retailing
branded fashion

32
4.13 Risk management of big bazaar logistics

Introduction:

Due to complex market and business environment, undesirable disruptions in logistics

affect enterprises and weaken its business strength. Risk Management has become the
key to avoid severity business loss. Logistics interruption occurs mainly due to
unforeseen exogenous event such as earthquake and fire, non durable good sall can
interrupt enterprise logistic operations and degrade performance.
Logistics link all the processes from upstream to downstream parties, and managing
the material and product flow in an efficient way to delivery product to customers.
Logistic management is one of the important competitive strategies that strengthen the
flow between upstream and downstream parties. From process point of view, more
complex processes are likely to incur more risks. This is especially true for business
that depends on external supplies to achieve her business objective.
In order to sustain supply chain performance and avoid losses due to risk, logistic risk
management must be implemented. In General, risk management actions can be
classified in accordance with the happenings or events.

In general, risk management can be classified into two approaches, one is mitigation
strategy and another is contingency strategy. Figure 4 in following.
 Mitigation action is managing the risk sources and
 contingency action is handling the risk consequences.

33
Risk management structure:

Six types of risk in retail industry:

1. Out of stock

This is the greatest and visible risk because customers would easily switch to use of
competitor products. Imagine when a new product phase launch, advertisements has
appeared widely in the media but the customer can not buy in the shops. Typically,
the implied reasons are manufacturing and logistics do not complete the task, or
coordination problems. However, in reality ―out of stock‖ due to ―management‖ from
a number of employees and Distributors in distribution systems of ―virtual‖ outlets,
this is one of the purposes of seeking profits from the distribution of a number of
―objects‖ are related directly or indirectly, whatever is reported to be out of stock, but
the market is not actually out of stock. Therefore, manufacturers should pay attention

34
to the shop review randomly, take measures to monitor cross from the Business
Department, or a mechanism to control this cargo problem to ensure correct
information.

2. High inventory :

Contrary to the out of stock ―disease‖, high inventory shows that products are not
consumed as expected. The fact that a manufacturer have number of product code
from a few dozen to several hundred butbestsellers And the high inventories typically
fall in the line of slow sale products (slow moving). The manufacturers may be based
on experience and market analysis to balance reasonable rate when conducting new
products. However, with products have already had in the market and determined that
consumption is not high as expected, in addition to the review of the sales team,
manufacturer could also consider promotion solutions, promote consumption and then
put terminate or ―put in a blacklist‖ the item codes which have bad selling result to
limit manufacturing quantity .

On the other hand, the adjustment of the number of inventory days while ensuring
adequate supply for the market will be huge opportunities for distributors to expand
the network, business scope from the main source of ―dead‖ money that is long-time
inventory. The transportation network should be gradually improved, the reliability of
higher delivery, manufacturers should regularly monitor policy that gradually reduce
the number of necessary inventory days to improve capital efficiency for distributors
and production forecasts will be more accurate.

3. Bad POSM

―Dominate‖ positions on the shelves is the most obvious market share reflects way for
consumers. However, occupying the outlet displays across the tens of thousands to
hundreds of thousands of outlets is not simple. At the management level,
manufacturers often have to hire the independent unit (eg Nielsen) to carry out
surveys and provide display stats at several outlets to assess market coverage.
Currently, the time to have data on the display is usually more than one month and
must accept errors because no one can provide sample display information at each
outlet, leading to make late decision. The one which is responsible for Sales /

35
Marketing of the company should regularly monitor and evaluate the POSM by region
to promptly update the market commodity display and make decisions on time.

4. Ineffective sales force management

This is one of the most difficult risks, particularly with companies that have widely
distribution network and great number of staffs (hundreds of people). To know how
many sales staffs are actually working? To know ―determination‖ of business
personnel have been maintaining? General thoughts are based on results compared
with sales targets, but the fact is that there are many ―tricks‖ that staff currently apply:

They declare 10 employees but actually only 5 employees appointed, each

person on the payroll of two people; ―Grafted single, split unit‖ for each other to
ensure general and specific indicators; while reaching sales target they take rest, they
do not try the best to exploit market opportunities; … A beverage manufacturer fell
30% number of sales force but sales result did not decrease, as staff by declaring
―virtual‖ too high. In addition, the management of the sales team is not only closely
monitor sales personnel but also requiring timely measures to support personnel in the
―hard‖ area (competitors are too strong or market demand is not much) or new
personnel, thus assuring the company overall results.

5. Non strict distributor management

After period of time, the distributors will gradually ―strickier‖ in evaluate

disadvantages and will take advantages of loopholes in the management of
manufacturers to exploit, for example in the management of promotions. The budget
was approved, the media has run, but promotional materials have actually been to the
consumer that‘s the question. Having been to right object that manufacturers expect?
Or whether the calculation of retail promotions are really accurate and consistent or
depending on relationship with each distributors and outlets that have different
policies? ―Stricks‖ that distributor often used is ―cooked data‖ (―data cooking‖) to
ensure a very nice report, in full compliance with requirements of the manufacturer.
This is a relatively problematic risk and requires alertness and supervision of
manufacturer and carrying out continuously by a distributor with good history that
does not guarantee the long-term compliance.

36
6. Inappropriate distribution management tool

Which way to bookmark orders at the shop? How to prevent ―data cooking‖? In the
past, the sales person just need the notebook. But with the rapid advancement of
technology, more and more choices: PDA, mobile phone, tablet. Actually there is no
best solution, only the most suitable solution for every stage of business development.
When manufacturer requires that information should be updated more quickly, more
accurately, it is time to review the technological options to improve the efficiency,
accuracy. Many distributors / sales staffs are afraid of using the management tools for
monitoring sales more, to comply more but the fierce competition of the market is
required, only the ―rough – players‖ are capable of existing.

In summary, the distribution is important and complex work. The manufacturer has a
keen vision that can analyzes numbers, report to capture the movements of the
market, the market demand and the site to save costs in a reasonable manner.

Reverse logistics help in risk management :

Big Bazaar has Central Return Center (CRC) which is a dedicated specialized
building/area within Central warehouse

Zonal Return Center (ZRC) which handles returns of each zone at these
warehouses recycling, reconditioning, remanufacturing and refurbishing of products
are done which are-
 Customer return items

 Defective items and

 Unsold goods/excess stocks

Warehouse returns defective items and unsold/excess stock to CRC/ZRC,

accompanied by Goods return forms.

37
Customer Returns: reverse logistics warehouses receives the returned item with the
Customer return note and decides whether these products to be sold as scrap locally at
stores/dispatched to vendor or dispatched to CRC(non apparel items)/ZRC(Apparel
items)

Defective items: after quality inspection, CRC/ZRC takes decision about disposition
of these items by:

 Scrap sale
 Auction sale
 Return to vendors
 Refurbish/ rework and sale in factory outlets
 Refurbish/rework and sale as fresh stock

Two approaches for risk management :

1. MITIGATION RISK MANAGEMENT STRATEGY :

a).Mitigation strategy is a set of planning for action to the uncertainty events prior to
it happened. The purpose is either away from the disturbance or reducing the impact
when it occurs. A mitigation strategy should tailor specific disturbance or threat and
also certain costs will be incurred in order to avoid disruption happening or lower the
losses. Therefore, the cost-benefit should be evaluated before any decision being
made. Moreover, the trade-off between strategies is another factor need to weigh up
during the decision processes.

In enterprise risk management,(ERM) there have some principle approaches had been
adopted in deciding a mitigation strategy which also can be applied in logistics
management processes. Committee of Sponsoring Organizations (COSC)provided a
guidance in response to a risk attack encompass four approaches as below;
- Accept = monitor
- Avoid = eliminate (get out of situation)
- Reduce = institute controls

38
- Share = partner with someone
According to above four approaches are set in a general direction, but for a right
mitigation strategy should be tailored to specific risk.

Hence, a clearly and comprehensive risk identification is benefit to deploy a right

mitigation strategy and actions as well as lower the impact of risk.

b).Another factor will affects mitigation strategy setting that is the enterprise business
strategy decision. Enterprise set forth their business competition strategy to win the
market that also resulted in selecting mitigation strategy. Such as choice
responsiveness to the market or focus on efficiency will lead to different impact of
risks.

In other words, enterprise‘s decision in business strategy selection would affect its
preference in risk mitigation strategy choosing.

Knowing the risks and forming a mitigation strategy is just a starting, how to resume
back to normal will be relying on enterprise‘s capability.

Enterprise should aim to balance its portfolio of capabilities to match the pattern of
vulnerabilities. The lower system vulnerability the lower possibly to be attacked as
well as the less capability is needed to be put in place that is also mitigation strategy
set forth to be achieved.

1. Contingency risk management strategy:

Contingency strategy is aiming to rapidly response to the disruption event and also
recovery quickly from that event with minimum expenses. Set up a contingency plan
is an essential policy in government institutions to manage natural disasters. And also
exist in many technology facilities for deal unexpected disruption such as the data
backup for Banks when a fire or earthquake happened. In many organizations have
defined its contingency plan for multiple purposes, and use a different name for the
recovery processes.

The contingency strategy can be as an extension of mitigation strategy plan. A good

mitigation strategy plan should be able either reduce the likelihood of event
occurrence or limit the losses caused by the event, as well as lower the costs of the

39
contingency actions would be put in place after the risk event occurred. The prime
policy is no damage happen whilst enterprise is being attacked. In this paper would be
focus on mitigation strategy.

Process of risk management

Risk management should be lead by enterprise high level management and set as a
strategic process across all hierarchy levels. The risk assessment framework of each
functional department should be in accordance with enterprise risk management
(ERM) strategy and in line with the customer and stakeholder value. Some risk
management standards have been established such as Committee of Sponsoring
Organization (COSO) ERM, ISO-31000:2009, or AS/NZS-4630 for enterprise
application.
For Information Technology (IT) system, there have more standard procedures been
applied to manage the risks may happen in daily system operations.

The risk management of the logistics department should be inherited from its
enterprise risk management to deploy its strategy. Common ERM practice in
accordance with its organization function, it classified five risks category in
enterprise, including strategic, financial, operational, human capital, and hazard, to
assess and manage risks. The source of risks is varying in the different business
environment of the subject and in its inter-systems.

Risks identification
The first step of risk management is to identify the sources or drivers of risk. The
disturbances can be happened in any way any time. Enterprises need systematically to
collect all possible disruptions or threats, and well prepared before it happens. The
risks can be identified in different aspects, either from external environment or
internal operations. In logistics chains, the opportunity exposed to risk of environment
is higher, nor only managing the disruption in process flows but also control the risks
in suppliers and customers.
The loss of risks is not only decided by its sources or drivers, another factor,
vulnerability of system leads to it happened and affects the degree of severity. The
vulnerability is weakness of an enterprise‘s operation, it can be a process, or function

40
or in a certain condition, and it might not harm until being a risk attacked. For
example, running lean production to reduce the inventory holding cost, at the same
time, it may increase the possibility of shortage when if disruption as volcano eruption
or earthquake happening. In other words, every company ca=n be attacked by a same
risk, but the results will not be equal due to the vulnerabilities of the company.

source of driver of risk can be defined in different aspects due to its subject :

In order to collect all the possible source of risks in logistics chains, in this paper,
would use process flow and its functions for identifying the risk source in each node
of logistics flows.

 Risk framework- process flow perspective

Following this framework and assessing the potential risk might affect the
performances of each logistics management function. The information flow is across
all activities in the chain. This identified the risks of information security/ breakdown,
forecast risks, intellectual property rights, and IT/IS outsourcing risks, that will need
to pay attention in daily logistics operation processes as well. Due to each enterprise
has different risk awareness and vulnerability of its system, a matrix can help to
collect most of the source of risk and assessing its vulnerability against to each
identified risk. More to the point, each department will focus on the risk they are
concerning might to against the benefits of other departments.

41
A matrix of risk in each logistic management function :

Risk analysis & evaluation

After risks source and vulnerability be identified, the next step is to know the loss
severity and likelihood of a risk happening. To present the influence of a risk will be
needed to know the nature of risks. It can be an unpredictable disruption as an
earthquake, or a continuously change as foreign exchange rate, or a fault of people
actions. As the variety of risks as will many techniques may need for risk evaluation,
a general calculation of risk can be illustrated by likelihood of risk happening and the
level of severity.

Assessment techniques identification

The type of risks is widening. How to evaluate the risks will be needed using different
techniques in order to get a right for decision-making.The techniques application can
be classified and apply to each step of the risk assessment process. The technique
should be applied in accordance with the nature of risks that it is nor only for
choosing a right tool but also specific the problem for decision-making.

42
Risk evaluation
In general, risk is naturally existed in business operation, and the more open to the
market the more possibility to be attacked. The information of a risk is collected from
historical data and assumed the disruption would be happened in the future as same
pattern. The action enterprise takes should be able to reduce or avoid either the
possibility of risk happening or its impact. In addition, the risk which occurred today
may not threaten to enterprise again, for example, to move the production to another
location. Hence, the risk should be evaluating in a period of time and profile the risks
for enterprise‘s references.

Risks can be assessed in according to the possibility of risk occurrence and its severity
level. More to the point, as mentioned in previous sections, enterprise vulnerability is
a key factor lead to losses.

Risk treatment-mitigation strategy :

Prevention is better than cure, the mitigation strategy is designed to manage the risks
prior to it occur and lower the losses.

Costs/Rewards

Figure 13: Relation between reward and risk

Source: Chopra and Sodhi, (2004)

43
Implementation
The successful of risk management is rely on the policy can be fully processing down
to front-end operators. It can protect enterprise out of losses if the risk management is
solid and comprehensive. To have a well risk management is counting on a solid
governance of system implementation and controlling as well as monitoring all the
processes. Looks from another aspect, implementation process could become another
vulnerability to risk management successful.

Governance

The governance is built on a sound management process. The primary objective of

logistics management is to service customer effectively and in an efficiency way. At
the same time, from cost perspective, logistics management should aim to reduce the
cost in each node of the chain. Therefore, to balance the cost and service levels is a
synergy performance result by the effort of logistics management.

Control & Monitoring

Once the risk management governance been set and implemented down to front-end
employees, the following action is to control the risks have been identified and
monitoring the execution and performance result. In general, mitigation strategy can
be categorized into five approaches, accept, reduce, alliance, insure, and avoid.

Continuous improvement
The risk can be changed subject to environment, business competition, or company's
actions. Such as when customer moved to emerging markets and requested to have
local delivery in emerging markets, and then set up a warehouse near customer will be
needed. In this condition, the risk of delivery will be lower, but the inventory holding
cost and risk of inventory obsolesce will be increased.

Risk is always exists, enterprise is inevitable to face it, such as earthquake hit,
volcano eruption, or computer hacker attacks. The source of risk is diversity and can
be happened suddenly and quickly.

44
4.14 Recommendation

 To increase more footfalls more promotional activities must be carried out.

For this BIG BAZAAR can either offer more discounts or increase either
advertisements. Increase in the number of footfalls will lead to increase in
sales.
 Allowing more space between the entrance of a store and a product give sit
more time in the shopper‘s eye as he or she approaches it. It builds a little
visual anticipation.
 The number of trial rooms available at BIG BAZAAR is very less as
compared to the number of people coming. This usually results in long queues
and waiting by customers.
 Install more full length mirrors inside the store so as to assist the customers
to make better purchase decisions.
 Play light music inside the store to make the shopping a pleasurable
experience.
 They can also exhibit their new line of clothing through events like fashion
shows.
 Baskets should be scattered throughout the store, wherever shoppers might
need them. Many customers don‘t begin seriously considering merchandise
until they have browsed a bit.

45
 V - CONCLUSION

 The report reveals that there is huge scope for the growth of organized
retailing and improvement of Big Bazaar Store in Allahabad city.
 With the changing lifestyle, modernization and westernization there exists a
huge scope for the growth of Big Bazaar store and is therefore a threat to
unorganized retailing.
 Big Bazaar store are able to provide almost all categories of items related to
food, health, beauty products, clothing & footwear, durable goods so it
become quite easier for the customer to buy from one shop and hence is a
convinient way of shopping when compared to unorganized retailing.
 Aggressive Marketing is the key to increasing the market share in this area,
since the market has a lot of potential both in terms of untapped market .
 Risk management cannot be successful without a solid governance to manage
all processes. And also review the performance of risk management for verify
and adjust the risk strategy actions as well as profile the risk for improvement.
Therefore, risk management is a continuous process, through continuous
improvement to sustain logistics management performance so as to satisfy
customers.

46
 BIBLIOPGRAPHY

Reference books:
1. Logistic notes of TY BMS
2. IUP JOURNAL SCM

Reference site:
3. Risk management in logistic pdf
4. www.scribd.com
5. Wikipedia
6. www.retailindia.com
7. https://www.researchgate.net/publication/287314901
8. www.futuregroup.in
9. www.futurebazaar.in
 Annexure

A study of logistic and its risk management of Big Bazaar

1. Name

2. Age

Below 18 40 - 60

18 – 40 Above 60

3. Gender

Female

Male

Other:

4. How you came to know about Big Bazaar in supply chain

management?

Electronic media

word of mouth

Print media

Hoarding

5 . How often do you shop?

Once a week

Once a month

Fortnightly

6. Why do you shop at Big Bazaar in supply chain management?

 quality

Offer

Price

Easy availability of product

7. During which offer you shop most?

Wednesday Bazaar

Weekend offer

Monthly bachat bazaar

8. what do you mostly shop at the big bazaar stores in supply chain
management ?

Clothing

Accessories

Groceries

Other

9. Are you aware of FBB own brand of Big Bazaar in supply chain
management?

Yes

No

10. Are you satisfied with big bazaar in supply chain management?

Yes No

11. in which are of operation and Big Bazaar in supply chain management
improvement is needed ?

cashier speed Staff knowledge Time management