8/12/2019 Big Basket Model

1/4

8/12/2019 Big Basket Model

2/4

you consolidate orders for the day+ go and buy the products and deliver. (henyou reach a particular volume+ you move from the Dust;in;time model to what iscalled the warehouse stocking model. That is where they are as far as $angaloreis concerned. They now buy products directly from the supplies+ like @nilever andProcter 2 9amble+ they buy from farmers and mills and stock the products in thewarehouse. They stock a certain number of days of sales+ depending on the

product and sales. They are able to set initial inventory levels and then decidewhat the re;ordering levels are. 0o it is all completely automated. They buydirectly from the manufacturers or suppliers and add a margin to the productprice before selling. ?t a mature stage+ the blender margin stands at 7*;7E percent. The company:s uni#ue selling point lies in its range of products+ both in freshand froAen categories. They have signi,cant e1perience in own;branded productsand that helps keep a check on #uality. Their delivery track record is strong ;

8/12/2019 Big Basket Model

3/4

Fne thing that has not changed in all these years is the ineOciencies in the supplychain. $ut that is a universal challenge. There are other challenges which are speci,c to theironline format.

)' uality ontrol pick errors ; The picker picks and packs the wrong product. 3owever+

this has now been addressed. They have invested in special scanners which record theorder and if the picker scans the wrong product

7' The second and most pressing is to get ,ll rates right+ which currently stand at

8/12/2019 Big Basket Model

4/4

(/)hanging 9overnment policies.