Reliance- Logistics

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Reliance- Logistics

  1. 1. Partners AT the point of SALE<br />
  2. 2. INTRODUCTION<br /><ul><li>Moments of Truth</li></ul>Customer selects the product<br />Consumer uses the product<br />POS - Point of Sale<br />Actual location where the monetary transactions between the buyer and the seller of goods take place<br />True centre of manufacturing retailing universe<br />
  3. 3. Shelf Centered Collaboration<br />Manufacturers and retailers to recognize the full power of the shelf<br />Shelf Back and Shelf Forward<br /> 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. <br />
  4. 4. SHELF CENTERED VALUE CHAIN<br />
  5. 5. Your friendly neighbourhood store in an area of 1500 – 2000 sq feet<br />Fresh fruits, vegetables, staples, dairy and FMCG products <br />First foray into retail by RIL<br />900 stores in 80 cities across 14 states<br />5 million customers following the Loyalty Program `Reliance One`<br />
  6. 6. Basic Reason for entering into Food Retailing<br /><ul><li> Capture 350$ billion Indian Retail Market
  7. 7. Build a high-profitability business.
  8. 8. Grossly inefficient food supply chain provides potential for huge profits.
  9. 9. India Ranks 1st position for Retail Investment Destination.</li></li></ul><li>Traditional SUPPLY CHAIN for Fresh Products <br />
  10. 10. Current supply chain of reliance fresh<br />Always buy from local farmers never from the mandis .<br />Established the rural business hubs in many parts of the country.<br />The objective is to make the entire value chain more effective and responsive .<br />
  11. 11.
  12. 12. Shelf DISPLAY<br />Shelves indicate Reliance Fresh’s higher margin objectives.<br />Most of the staples are under its own private label brand i.e. “Reliance SELECT” for staples and “Dairy Pure” for Milk Products.<br />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. <br />Private labels offer far better margin to the retailer than branded products .<br />
  13. 13. Continue.....<br />Shelf Talker – To communicate promotions to shoppers<br />Diwali event Colgate event <br />
  14. 14.
  15. 15. IT in reliance RETAIL and POS<br />IT is used to manage & plan their inventory , to reduce procurement cost , electronic ordering , electronic fund traansfer etc.<br />Supply Chain Management<br /><ul><li> Helps them to track their inventory movement from supplier’s to point of sale.</li></ul>CRM<br /><ul><li> Helps them to understand customer demand pattern.</li></ul>Business Intelligence<br /><ul><li> Able to understand eco system of retail business</li></li></ul><li>Retalix<br /><ul><li>Handles multiple store format and hardware systems, helps to adapt to rapidly changing market.</li></ul>Oracle<br /><ul><li>With this software they are able to forecast & demand planning accurately
  16. 16. It helps the business to reduce suply chain costs
  17. 17. Accelerate Inventory Turn Over Process
  18. 18. Handles Different kinds of pricing & promotions</li></li></ul><li>Michael Porter’s Value Chain <br />
  19. 19. Michael Porter’s value Chain – Primary Activities<br />Inbound Logistics : Supply directly from farmers<br />Operations : Cleaning, Grading, Packaging, Pricing<br />Outbound Logistics : Shelf Placing and Retail display in stores<br />Marketing and Sales : Promotional Offers and Advertisements<br />Service : Customer Care Management <br />
  20. 20. Michael Porter’s value chainPrimary Activities - Operations<br />PE Extruded nets are used to pack<br />vegetables individually wrapped<br />for enhanced shelf life.<br />Thermoformed PP Trays to hold 4-6 large fruits with Stretch Cling Wrapped films for good visibility and shelf life.<br />Laminates are used to pack fresh / cut vegetables and fruits, offer a clear view and extended shelf life<br />Preserves food by removing moisture<br /> (Drying)<br />
  21. 21. Fruits<br /> Prevent browning and loss of vitamin C (Sulfuring, Blanching, Sulfite Dip, Ascorbic Acid solutions)<br />Vegetables <br /> Water blanching and steam blanching <br />Range of dried F & V, marginally processed as a healthy snack.<br />Vacuum packaging for Bulk handling and extended shelf life<br />Michael Porter’s value chainPrimary Activities - Distribution<br />
  22. 22. Porter’s Value CHAIN Secondary Activities<br />Infrastructure<br />Store Area of 1500-2000 sq feet<br />Human Resource Development<br />Technology Development<br />Procurement<br />
  23. 23. The ROAD AHEAD<br />Two different retail formats to be launched<br />Feel Fresh<br />Area of 3000-5000 sq feet<br />For fruits, vegetables and staples<br />Feel Fresh PLUS<br />Area of 10000 – 15000 sq feet<br /> For fruits, vegetables and staples, apparels, consumer electronics, FMCG and medicines<br /><ul><li>Ranger Farms </li></ul>Whole sale formats of to be replicated for all the Fresh Stores<br />
  24. 24. COMPETITORS <br />
  25. 25. recommendations<br />Improve revenue by concentrating on existing customers<br />High Standards of Freshness and Quality in the F & V section has to be maintained as ascustomer didn’t find Freshness and Quality<br />Queuing problem still exists at the billing counters which need immediate attention<br />

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