Reliance Fresh - Supply Chain

Operational Strategies

Presented By:Aditya JaswalAvinash Kumar

Introduction:-Reliance Freshis the convenience store format which forms part of the retail business ofReliance IndustriesofIndia.

Type Super Market

Industry Retail

Founded October 30, 2006

Headquarters Mumbai,India

Key people Mukesh Ambani

Business Model

Store Small & Medium Store (2000-4000 sqft)

Merchandise Food & FMCG Products

Investment Per Store Rs 5 To 6 Million

Catchment Area 2 To 3 Sq Km Radius

Market Positioning Convenience Store

Product RangeFresh Vegetables & Fruits

Staple

Processed Food

Beverages

Personal & Home Care

Dairy Products

Fast Moving Products

Slow Moving Products

Store layout

CheckoutEntry/ExitSupply Chain of Reliance Fresh

For vegetables approach farmers directly instead of buying from the mandi. Helps in reducing wastages and procuring at a reasonable cost.

Better returns to Indian farmers and manufacturers.

For FMCG and dairy products it is supplied by the local vendors.

Greater value for the Indian consumers.

Reliance Fresh Supply Chain ModelFarmersFarmersFarmersCollection PointProcessingReliance FreshReliance FreshReliance FreshFarmer own transportationFarmer own transportationFarmer own transportationReliance Own Logistic Reliance Own Logistic Reliance Own Logistic Reliance Own Logistic

Operations15Procurement ProcessApart from vegetables, dairy products and bakery items are directly procured from the suppliers based on the pre-negotiated terms.By procuring directly they weed out middlemen and also the costs attached to it.Non-Perishable goods such as FMCg which have a longer shelf life is procured centrally by the merchandising department.Daily Activities at the StoreStore starts its operations by 5.30 am in the morning.Daily indents of fruits, vegetables and dairy products reach the store by6 am.The stock is put up on the shelves and is made ready for the consumers.Store manager updates the opening stock as well as updates the price list received on a daily basis from the head office.Also updating on the promotion offers happens.Merchandise is checked and stocked by the supervisor from time to time.

The cycle of replenishment happens on a daily basis.Fruits and vegetables are thrown away after 2 days(provided they perish) while FMCG products are kept till their expiration.On an average 8% of the food items are dumped and is accounted as wastage.Reliance fresh uses SAP software which is automated and is used to re-order inventories.Inventory PlanningLiquidating Stocks

Reliance reduces the prices on perishable products by 50% after 6 pm so that the stocks get sold and new stocks can be ordered.Also for the extra stocks at the store, reliance advertises in newspapers fofr the consumers.

RecommendationsSome exccess space should be created for billingEven though there were 4 billing counters, only 2 were operational. The waiting time on a weekday was almost 10 minutes.Proper arrangement of merchandise segregated based on brands which is visually appealing.Have enough walking space.Improvement in the quality of fruits and vegetables.Frequent cleaning of store is required so that to avoid the dirty look of the store.Ample parking space.