presentation1.ppt reliance

2

• Reliance Retail Limited (RRL), a subsidiary of the Indian conglomerate Retail Industries Limited, launched its first convenience store in November 2006.

• RRL has grown rapidly and operates over 900 stores across 80 cities in 14 States, which include over 750 Reliance Fresh stores.

• Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India .

• It is positioned as a pure play super market focusing on categories like food, FMCG, home, consumer durables, IT and wellness , with food accounting for the bulk of the business.

3

4

Inefficient Supply Chain in India

5

6

Reliance Fresh : Supply Chain Model

Model 1: First Reliance Fresh Model

7

Reliance Fresh : Supply Chain Model

Model 2: Wholesale Trading Model (WTS)

• Generally located in small commercial complexes close to 3-4 big residential areas

• Observation: found close to ‘Crossroads’

• Enjoy a clear view from the road

8

• The main idea behind every effort is to make a bulk purchase

• Saturday and Sunday are considered as discount and scheme day.

• Rebates and Premiums focusing on bill value• Audio visual tools been employed• BOGO & BXGY

9

• Strictly vegetarian• Product Mix consists of Fresh Fruits,

Vegetables, Dairy products, Frozen Items, Groceries, cosmetics and Daily Use products.

• Less Assortment but focus on specific product categories like vegetables, dairy products, detergents, fruits and daily use items

10

• The pure foods convenience store model of Reliance Fresh requires far less space than a full-fledged supermarket

• Most of these outlets need around only 2,000-5,000 sq. ft

• Simple, colorful but cramped• Separate entry and exit point• Chocolates and other kids items were nearby cash

counter• Vegetables and Fruits items were in display near entry

gate

11

Layout and ambience –Well Lit, Neat, Bright and Easy to read Signs

• Low prized Private labels• Discount on bulk buying• Measures taken to reduce the length of Supply

Chain thereby purchase directly from farmers, which is in turn sent to distribution centre.

• Two times supply of vegetable and fruits daily to ensure “fresh”

13

• 2 shift staff for small stores and 3 shift staff for larger ones

• 5 to 6 sales persons per shift• Staff uniform: red, green and blue• 1 week training given to staff

14

Reliance Fresh : Personnel

• Reliance Fresh’s shelves provide an indication that the group is looking for higher margins. Most of the staples are under its own private label brand — ‘ Reliance Select’.

• Excepting a few packets of Nestlé's Maggi, or MTR’s masalas or Pepsi’s Lays chips, there is very little shelf space given to the big brand owners in the country.

• Reason: Private labels offer far better profit margin to the retailer than branded products of FMCG companies.

15

Reliance Fresh : Private labels

Predicting the future with SCM

Mani MulkiVice-president, ISGodrej Industries"Supply chain costs will constitute at least 20 percent of the overall costs by the time a product is delivered to the end consumer"

- Chinar DeshpandeCIO Pantaloon Retail"It is feasible to plan for future demand if an SCM solution is used as a collaborative platform amongst all the key players of a supply chain"

V V R BabuCIO, ITC"SCM aids in decision-making such as the what and how of production, transport and warehousing—on a daily, weekly or monthly basis "

-

Future of Retail Industry

Sampark to Sampurna

•Godrej had earlier hooked up its distributors through an initiative called Sampark. •Now in an effort to connect its retailers, the company is working on an initiative called Sampurna•The company has five factories, four warehouses in each region, about 1,200 distributors and half a million retail outlets that are directly billed. •They have completed 60 to 70 percent of system building and connected 400 ‘A’ class distributors who constitute about 70 percent of the company’s sales by means of Sampark from Botree. •Godrej has implemented a customised ERP solution for these distributors who use it for their daily accounting, material receipts, billing and inventory. •End of each day, the system at the distributor’s end handshakes with the central server via the Internet. In this handshake, the details of the delivery channel are uploaded and the latest price lists downloaded to the distributor’s system.

Supply chain management goes beyond inventory management and streamlining of supply processes. It is being looked upon as a tool for predicting the future by retail and FMCG organisations.Priya Jain reports