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Reliance Fresh Supply ChainReliance Fresh Supply Chain
ManagementManagement
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Introduction
Inter-connected Business According to the Council of Supply
Chain Management Professionals(CSCMP), supply chain management
encompasses the planning andmanagement of all activities involved in
sourcing, procurement, conversion, andlogistics management
Includes storage of raw material, Workin process inventory and finished goods
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Supply Chain
Management
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Reliance Fresh
Reliance fresh retail chaindivision of Reliance Industry
Present in every metropolitan
and reional area of India Plans to e!pand its retail
presence to "#4 cities
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Strategy adapted by Reliance
fresh $uyin directly from %armers Price reduction from 1&' to 20'
(eliverin value to the customers
)ssistin farmers *ith hih
+uality inputs *hich disinter
mediates supply chain and
eliminates the *aste
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Procurement process
,oods procured locally and -ationally
%ruits. rains and other )ri products
procured from ocal farmers
%, from erala
2 arehouses alicut and
ohin5ampara
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Supply chain for fruits andvegetables
7he produce from farmers is collectedat the ollection enters 8 and:uality chec; is done ?orted and raded dataentered into the ?)P system for easytrac;in
@stimate the demand and raise the
order for ne!t day re+uirement $ased on the availa=ility of oods
delivered to the store
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Supply chain for Non fruits
and vegetables ,oods directly collected fromanufacturer delivered to the
local (
)vaila=ility of inimum $ase
:uantity 8$: for all items
?)P automatically reorders if
$: is lo*
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Contract Model
Pre>areed price. +uantity. measure of+uality =et*een the company and thefarmer
Procures different ;inds of veeta=lesli;e carrots. onions. ca==ae. cauliflo*eretc
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Farm to Fork Model
ProsA eads to removal of non>value addin
intermediaries from supply chain
A ost reduction
A Reduction in lead time
A Reduction in intermediaries leads to lesser
*astae
onsA oss of employment
A -eed for lare investements
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Supply relations
Perisha=le ItemsC %ruits D Eeeta=les>
ontract %armin
(airy>Partner supplier relationship. il;
is directly from I). dairy products
from )mul and I)
$a;ery items ultiple supplier
%, PD,. FB and (ura=le armlenths
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Inventory Management
?torae area is availa=le to each storeare inventory can add to the
storae cost
too much of inventory can also add to
*astae if perisha=le items in +uantityess inventory may add to
disadvantae as sales fiures *ould
o do*n
7ime la =et*een demand and supply ofoods G 2 days
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Cycle of replenishment ycle of replenishment happen on daily
=asis %R@?F H(@
aintain inventory re+uirement of Hne day ?mall storae area replenished in ornin
Perisha=le are stoc;ed fresh daily into theshelves