Cash and inventory management techniques USED IN Big Bazaar : Cash and inventory management techniques USED IN Big Bazaar By :- Daya Shankar Shah
RS1901A12 Introduction : Introduction Big Bazaar is one of the leading retail format
Big Bazaar Ranchi is established in April 5, 2008.
Big Bazaar has different sections devoted to specified products. Such as Food Bazaar, Apparels, cloths, electronics, furniture Bazaar, Modular kitchen, Depot etc. Objective of study : Objective of study Study the process of cash management and techniques used to manage cash activities
Study the process of inventory management and techniques used in Big Bazaar’s Food Bazaar section. Research methodology : Research methodology Data collection
Primary source :- Information is collected from cash department , inventory department and direct observation.
Secondary source :- Research paper, website, and books. Cash management : Cash management Cash management is the process of management of cash and its activities in the organization.
The activities related to the cash management
CMR(Cash management Reconciliation)
Safe Tally CONTD….. : CONTD….. Safe Tally:- It is the process of checking the cash amount in cash room physically and in system.
Big Bazaar does all the expenses through petty cash. The maximum amount that a store is allowed to keep in petty cash is only 20,000. so, the major expenses are done from central level. Only petty expenses are done from store. Inventory management : Inventory management Inventory is a list of goods and material which are held available either for production process or for sale to the customer.
Retail inventory is to keep the wide variety of stock along with the appropriate quantity.
Retail inventory management is used to keep track of the stock and these methods control everything from ordering, shipping, receiving, tracking inventory and storage. Inventory management In Big Bazaar : Inventory management In Big Bazaar Software used in big bazaar
SAP(System, Application and Product in data processing)
Used by back office for maintaining a data, general ledger, generating purchase order, in warding of goods etc.
Used at POS to generate the cash memo’s.
Keeps record of goods sold and upload the information to SAP. CONTD……….. : CONTD……….. DEMAND FORECASTING:- Sales of past sales of same quarter is taken.
weekly consumption is calculated
The amount to be ordered = Weekly consumption+ safety stock amount depending upon the no. of days supplier supplies in the week.
GENERATION OF PURCHASE ORDER:- It includes article no., description, MRP, cp, Tax, landing rate, qty, total amt, payment terms, delivery dates, etc
IN WARDING PROCESS:-
Giving bar codes and making entry in system Contd………. : Contd………. DISPATCH OF GOODS FOR SALE
Information about the position of stock:-
REM records all the sale of goods at POS. It also keeps the record of the stock of hand at that time and automatically updates in SAP.
RE- ORDER OF THE GOODS:- The Re-order point is 50%. Margins : Margins Mark down Methods:- in this method we have MRP and we have to calculate the CP.
Mark down Method:- Here we provide with the CP and we have to calculate the MRP of the product.
Big Bazaar purchase goods on MD margins. MAP(Moving Average price) : MAP(Moving Average price) Increase in price
when the price is increased then the MAP increases which shows the loss in the sale of every old stock and profits in new stock Decrease in price :- when the price decreases the MAP increases which shows profits in case of old stock and loss in the new stock. Contd…… : Fill Rate:- It is use to evaluate the efficiency of suppliers on the bases of goods supplied as per the order.
Brand wise:- Ex- shampoos, soaps etc
Merchandise wise:- Ex- biscuits
Stock Take:- Is the process of matching physical qty. of stock with the system qty. Stock take finds out the amount of shrinkage at that period.
Shrinkage is the difference between the system inventory and physical inventory. Contd…… Findings : Findings Big Bazaar has average sales of 10-15 lakhs daily. Almost 50-60% in form of cash. The cash is kept in cash room which is very risky.
Big Bazaar(Food bazaar section) does not have ware housing facility.
The concept of EOQ model is not used for having purchase of goods.
Problem of Shrinkage. Suggestions : Suggestions Big Bazaar can collect the cash in evening and can do banking at the same day.
The warehouse should be made with in the store so that the benefit of EOQ can be taken.
To control the shrinkage
1.stock take should be done frequently.
2. Installation of CC tv and should be monitored.
3. Customer should be made bill the small eatable items as they take it. Contd………. : Contd………. 4.should have surveillance staff, monitoring staff for monitoring POS terminals.
5.Installation of modern POS. Slide 17: THANK YOU