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SUPPLY CHAIN MANAGEMENT

Presented By:-
Harshika
Rohit Srivastav
ABOUT BIGBASKET.COM

Bigbasket.com is Indias largest online food and grocery store with over 18,000
products and over a 1000 brand.

Founded in the year December 2011 by the team of five people Hari Menon, Vipul
Parekh, Abhinay Choudhari, VS Sudhakar, VS Ramesh

Guarantee on time delivery and the best quality

Company has currently 70k+ customers, Banglore being the headquarters

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

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

India is the sixth largest grocery market worldwide,


however shopping for grocery online is at very
nascent stage and is still overcoming operational and
economical hurdles.

Online grocery retailing is a tough segment to crack


largely due to the perishable nature of products it
offers
CHALLENGES FACED BY ONLINE GROCERY RETAILERS

1.) Supply Chain Management

Procurement of quality products

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

2.) Logistics Management

Huge investments are required to build cold storages and distribution facilities to stock
perishable products

Operations are hampered by poor condition of roads 43% of Indias roads are unsuitable for
vehicles along with multiple checkpoints that slow down traffic

Dynamic route planning is imperative to avoid traffic congestions for on-time delivery
WHAT MAKES BIG BASKET INDIAS LARGEST GROCERY RETAILER
SUPPLY CHAIN PROCESS OF BIGBASKET
Currently, they are operating 25 warehouses and 63 storage facilities
Company is targeting revenues of Rs 1800 crores in FY17

WAREHOUSE HUB
Segregation and
Picking up the products consolidation
get happened in this happened.
stage. Scanner is used Van routing and
for picking up the right tracking for effectively
FRONT END product. deliver
DELIVER VAN
They Take order online,
Tabs for order deliver
Customer order through
and receipt
phone or website.
confirmation
(User Interface)
EARLIER STRATEGY JUST-IN-TIME

Purchased-to-order
Directly picks up the item from the retailer, and directly delivers it to the customer
Decrease waste
Reduces the inventory cost
EARLIER STRATEGY JUST-IN-TIME

Sources vegetables and fruits


i. major producing locations
ii. mandis (markets)
iii. local farmers

60minutes express delivery


Delyver(strong two wheeler network) which delivers (rice, lentils, cooking oil(basic item)

90-minute express delivery


Dervice to cater to customers ordering perishable products such as milk, fruits and vegetables
INVENTORY MODEL

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

Big Basket follows inventory model currently

Warehouses to stock products which they purchase from different vendors. Their vendors include
big firms like P&G, HUL etc. along with small mandi vendors and kirana shops

Procurement totally depends on type of products and from where they have to be sourced. To
maintain margins, generally it is preferred to procure items from farmers directly. The whole chain
starts at early morning and they have proper team who benchmarks different prices, so that
procurement could be done efficiently considering cost and time

After getting materials from their vendors, it is stored in warehouses (warehouses cater to cities
within KMs range of 250300) where packing of items is done
MAJOR POINTS OF SUPPLY CHAIN PROCESS OF BIG BASKET:

Delivery vans
Refrigerated vans(Temperature control)
Dark storage where they store materials before dispatching to customers(facilities get a direct feed
from warehouses)

Use of data analytics is helping them to avoid wastage as items are perishable

Big Basket processes 35000+ orders every day

And operates in 23+ cities nation wide


HUB AND SPOKE MODEL FOR DISTRIBUTION

Wholesalers deliver goods to BigBaskets


warehouses

Ware houses act as the hubs where the orders


are picked and packed, and the delivery routes
of the vans are the spokes that connect to the
customer homes

Perishables are only warehoused for a matter


of hours and in some cases its 24 hours from
farm to fridge
ON-TIME DELIVERY

BigBasket handles 1,000+ orders a day in Bangalore, and 300-500 orders a day in
Mumbai and Hyderabad

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

Delivery vans are specially designed


i. low cost
ii. temperature controlled vehicles
iii. freezing and chilling chamber so that freshness of the frozen products is not lost till
they reach the customers doorstep
ASSETTRACKRS VEHICLE TRACKING SOLUTION TO OPTIMIZE
ON-TIME DELIVERY

BigBasket uses AssetTrackr RestAPI interface to tightly integrate with their ERP system and
handle all movement of trucks and delivery vehicles, notification to customers on estimated
delivery times
PRESENT SCENARIO- HYPER-LOCAL STRATEGY,

Hyper-local strategy, wherein, it has joined hands with more than 1,800
neighbourhood grocery stores across India to deliver goods within an hour

Looking for the current scenario BigBasket now processes almost 20,000 orders a
day, with the involvement of 2000 team members
NEW STRATEGY

Grocery e-tailer BigBasket is upping its game with heavy investments into its fresh produce and
staples supply chain, as it prepares to take on global giant Amazon which recently received the
DIPP nod for FDI in food retail.

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

article:build-online-grocery-website-similar-to-bigbasket.html. (2015, november 25). retrieved


10 13, 2017, from angularminds: https://www.angularminds.com/blog/article/build-online-
grocery-website-similar-to-bigbasket.html
http://www.thehindubusinessline.com/companies/bigbasket-invests-heavily-in-supply-chains-
of-fresh-produce-private-labels-to-take-on-amazon/article9783971.ece
govind, d. (2016, 10 13). live mint e-paper. retrieved 10 13, 2017, from bigbasket uses
assettrackrs vehicle-racking-solution-tooptimize-companiesstrategy followed at online
ontimedelivery:http://www.livemint.com/companies/hycjxkkeqbyqxxnbwrbywi/bigbasket-
delivering-the-goods.html
http://blog.assettrackr.com/bigbasket-uses-assettrackrs-tracking-solution/
REFERENCES

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