Reliance- Logistics

•

11 likes•9,167 views

Reliance Fresh is a grocery store chain owned by Reliance Retail. It aims to capture India's $350 billion retail market through its 900 stores across 14 states. Reliance focuses on sourcing directly from local farmers to build an efficient supply chain. At stores, most shelf space is given to Reliance's private label brands to offer better margins than national brands. Reliance uses IT extensively for supply chain management, demand forecasting, and pricing/promotions. It plans to launch two new retail formats, Feel Fresh and Feel Fresh Plus, expanding into categories like apparel. Key recommendations include improving the customer experience through better queues and maintaining high freshness and quality standards.

More Related Content

Reliance- Logistics

1. Partners AT the point of SALE

2. INTRODUCTIONMoments of TruthCustomer selects the productConsumer uses the productPOS - Point of SaleActual location where the monetary transactions between the buyer and the seller of goods take placeTrue centre of manufacturing retailing universe

3. Shelf Centered CollaborationManufacturers and retailers to recognize the full power of the shelfShelf Back and Shelf Forward With “shelf-centered collaboration, ”manufacturers and retailers can finally put the right product on the right shelf at the right time for the right consumer.

4. SHELF CENTERED VALUE CHAIN

5. Your friendly neighbourhood store in an area of 1500 – 2000 sq feetFresh fruits, vegetables, staples, dairy and FMCG products First foray into retail by RIL900 stores in 80 cities across 14 states5 million customers following the Loyalty Program `Reliance One`

6. Basic Reason for entering into Food Retailing Capture 350$ billion Indian Retail Market

7. Build a high-profitability business.

8. Grossly inefficient food supply chain provides potential for huge profits.

9. India Ranks 1st position for Retail Investment Destination.Traditional SUPPLY CHAIN for Fresh Products

10. Current supply chain of reliance freshAlways buy from local farmers never from the mandis .Established the rural business hubs in many parts of the country.The objective is to make the entire value chain more effective and responsive .

12. Shelf DISPLAYShelves indicate Reliance Fresh’s higher margin objectives.Most of the staples are under its own private label brand i.e. “Reliance SELECT” for staples and “Dairy Pure” for Milk Products.Except a very few packs of Nestle’sMaggi, MTR’s masalas or Pepsi Lays Chips, there is a very little shelf space given to big brand owners of the country. Private labels offer far better margin to the retailer than branded products .

13. Continue.....Shelf Talker – To communicate promotions to shoppersDiwali event Colgate event

15. IT in reliance RETAIL and POSIT is used to manage & plan their inventory , to reduce procurement cost , electronic ordering , electronic fund traansfer etc.Supply Chain Management Helps them to track their inventory movement from supplier’s to point of sale.CRM Helps them to understand customer demand pattern.Business Intelligence Able to understand eco system of retail businessRetalixHandles multiple store format and hardware systems, helps to adapt to rapidly changing market.OracleWith this software they are able to forecast & demand planning accurately

16. It helps the business to reduce suply chain costs

17. Accelerate Inventory Turn Over Process

18. Handles Different kinds of pricing & promotionsMichael Porter’s Value Chain

19. Michael Porter’s value Chain – Primary ActivitiesInbound Logistics : Supply directly from farmersOperations : Cleaning, Grading, Packaging, PricingOutbound Logistics : Shelf Placing and Retail display in storesMarketing and Sales : Promotional Offers and AdvertisementsService : Customer Care Management

20. Michael Porter’s value chainPrimary Activities - OperationsPE Extruded nets are used to packvegetables individually wrappedfor enhanced shelf life.Thermoformed PP Trays to hold 4-6 large fruits with Stretch Cling Wrapped films for good visibility and shelf life.Laminates are used to pack fresh / cut vegetables and fruits, offer a clear view and extended shelf lifePreserves food by removing moisture (Drying)

21. Fruits Prevent browning and loss of vitamin C (Sulfuring, Blanching, Sulfite Dip, Ascorbic Acid solutions)Vegetables Water blanching and steam blanching Range of dried F & V, marginally processed as a healthy snack.Vacuum packaging for Bulk handling and extended shelf lifeMichael Porter’s value chainPrimary Activities - Distribution

22. Porter’s Value CHAIN Secondary ActivitiesInfrastructureStore Area of 1500-2000 sq feetHuman Resource DevelopmentTechnology DevelopmentProcurement

23. The ROAD AHEADTwo different retail formats to be launchedFeel FreshArea of 3000-5000 sq feetFor fruits, vegetables and staplesFeel Fresh PLUSArea of 10000 – 15000 sq feet For fruits, vegetables and staples, apparels, consumer electronics, FMCG and medicinesRanger Farms Whole sale formats of to be replicated for all the Fresh Stores

24. COMPETITORS

25. recommendationsImprove revenue by concentrating on existing customersHigh Standards of Freshness and Quality in the F & V section has to be maintained as ascustomer didn’t find Freshness and QualityQueuing problem still exists at the billing counters which need immediate attention

Reliance- Logistics

Related slideshows

More Related Content

Reliance- Logistics