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MIS report onReliance Fresh
The project report describes the study conducted on retail sector &
their supply chain system. The study was conducted at RELIANCE
FRESH located at FOOTI KOOTHI ,INDORE
Submitted to:- Submitted by:-Dr. Vishal Khasgiwala Prachi Jain
Priya Soni
Sunayani Porwal
2012
Sapient Institute of Management Studies
7/13/2012
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DATA collection:_
Primary data: Primary data is collected trough personal observation as
well as form the logistic head of the reliance fresh located at footi kothi ,
Indore.
Secondary data: Some data about the reliance fresh is collected through
the various e journals, magazines & also from various websites.
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Content:
1. About Reliance Fresh……………………………………………….
2. History…………………………………………………………………
3. Growth of Reliance Fresh………………………………………….
4. Objectives…………………………………………………………….
5. Product availability………………………………………………….
6. Supply Logistics……………………………………………………..
7. Inventory management and logistics……………………………
8. Recommendations…………………………………………………..
9. Conclusion…………………………………………………………...
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Introduction of reliance fresh:
About
Reliance Fresh a convenient store format, is governed by the MukeshAmbani and is the most important part of Reliance Industries retailBusiness. Reliance Ltd. has planned to invest more than Rs. 25000crores in the retail division.
It also comprises more than 560 reliance fresh stores all over thecountry. The outlet sells fresh fruits, staples, dairy products, fresh juicebars, groceries and vegetables. A distinctive Reliance Fresh outlet isaround 3000 to 4000 sq. feet and accommodates catchment area of oneto three Kilometers.
History of Reliance Fresh
The Reliance Retail had to face various difficulties before the launch of Reliance fresh, because of the various circumstances prevailing inOrissa, West Bengal and UP, along with the news focusing on the dearthof vegetables and fruits stocks. The retail business of Reliance thenminimized its exposure in vegetable and fruit business, as a result
established Reliance fresh positioning a pure super market play focusing
on various categories like IT, consumer durables, home, FMCG and food.
The retail company of Reliance may not supply the vegetables and fruitsin a few states, the Reliance Fresh decided to not to race with localwholesalers partly because of the political reasons as well as itsincapability to maintain a healthy supply chain.
Growth of Reliance Fresh
The first ever a Reliance Fresh store was established in Hyderabad,wherein the company, mainly focused on the fresh produced vegetablesand fruits at comparatively low price along with an introduction of farmto fork theory.
This was the idea, which was anticipated by the company was to take thesupply direct from the farmers and then sell straightaway to the
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consumers removing the middle-men off the beaten track. Relianceintroduced several formats in the marketplace to cater to needs of common people, which includes Reliance Fresh, Reliance Super, RelianceFootprint, Reliance Timeout, Reliance Jewels, Reliance wellness, RelianceMart and Reliance Digital, to name a few.
In addition to this, the Reliance Retail also entered into a treaty withApple, which is a leading Information Technology company, to set up aseries of Apple Specialty Outlets branded as IStore, with its first everstore in Bangalore.
With an idea to produce inclusive prosperity and growth for farmers,consumers, small shopkeepers and vendor partners, Reliance Retail wasset up in order to lead the foray of Reliance Group into an organizedretail.
Objectives:-
To provide high quality products to its customers.
To reduce spoilage through its state of-the-art supply chain &
logistic networks.
To enrich customer’s shopping experience through customized
offer, private labels & ‘value for money’ merchandise.
To foster relationship with partners that will create new avenues of
value enhancement for customers.
To bolster its agribusiness & dairy value chain to support its
rapidly expanding store footprint.
To ensures fair & timely payments to farmers.
Product Availability:
Although Reliance Fresh is mainly concerned about stocking fresh
vegitables and fruits but due to some political controversy they mainly
focus on the household products and FMCG products.
The product details are listed below:
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Fresh fruits
Vegetables
Chocolates
Confectionaries
Cold drinks Freeze items like butter, ice-cream etc.
House hold products
Toilet items
Spices and dry food
Office stationeries
The product displayed in shelves in such a height so that they can be
easily availed by the customers and customers can compare the product
specifications and price.
Supply Logistics:
Current supply chain of Reliance Fresh:
Always buy from local farmers, never from the mandies.
Established the rural business hubs in many parts of the country.
The objective is to make the entire value chain more effective and
responsive.
LOCAL FARMERS
COLLECTION CENTER LINKED WITH
CONSORTIUMS (here grading and
standardization takes place)
RELIANCE FRESH
OUTLETS
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Inventory management and logistics:
The shelves are refilled during the mid day (generally around 2:00 to
3:00) when the customer pressure is very less. As per the store manager
they generally refilled the stores twice or thrice in a week depending
upon the sales of the products. Like as the fruits and vegetables are
highly perishable items so the stock is relatively less and are refilled
more often than others. The vegetables are kept in a low volume as they
stay only for a day, whereas the fruits kept in specially designed shelves
where the fruits stay fresh for a longer time.
As per the store manager, they have a particular source for all the
reliance stores in Indore from which the products are distributed in each
of the reliance fresh store according to the need and requirements.
Though he has not disclosed the overall inbound logistics strategy in his
store, he told the reliance fresh’s inbound logistics strategy all over the
India. They have their own Reliance Logistics Ltd. Part of Reliance
Industries Ltd, currently handles Reliance retail’s logistics service.
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Recommendation (as per observations at selected location)
Reliance fresh super value must concentrate more on the fruit &
vegetable section.
With reference to the Indian shopping mentality the store has toensure that the quality of fruits & vegetables is to be maintained as
per the unorganized retail sector.
Reliance fresh must concentrate more on Customers Service
Associates (CSA) because of lack of communication with customers.
If we talk about Indore then there are only 9 Reliance fresh. So the
company must focus on opening more outlets because they are in
the business of selling daily fruits & vegetables.
Conclusion:
With the growing retail concept Reliance Fresh is really a fresh air in the
arena of vegetable and fruit market. But due to some political and local
problems all Reliance stores are not allowed to keep vegetables and fruits
according to their goal.