In this PPT, We have used all concepts of Supply chain management. Very Unique terminologies are being used in the SCM field. Only for academic purpose.

1. Group 10
Harish Nayak – 46
Pooja Pairaikar – 47
Dinesh Pal – 48
Manali Parab – 49
Prashant Parab - 50
Supply Chain Management
Presentation
Retail Industry

2.  Retail sector contributes 10% to GDP and 8 % to
employment.
 Market size of Indian retail industry stood at US$
950 billion in 2018 and is forecast to reach US$
1,200 billion by 2021 and US$ 1,750 billion by
2026.
 Organized retail market in India is growing at a
CAGR of 20-25 per cent per year.
 Growth Drivers - Healthy economic growth,
changing demographic profile, increasing
disposable income, changing consumer taste and
preferences.
Retail Industry - Introduction Significant scope for expansion

3. Key Players & Retail Formats
Departmental Stores
 Pantaloon has 209
stores Westside
operates 158 stores
across 82 cities.
 Shoppers Stop had 89
stores in India, as of
2019.
 Lifestyle operates across
77 stores in India.
 Reliance Retails operates
670 fashion concept
(under ‘Trends’ brand
name) stores across 350
cities in India
Hypermarkets
• Big Bazar, D-mart,
Spencer, Easy day and
Reliance are major players
present in the market.
• Avenue Super-mart
(Dmart) - 214 stores.
• Aditya Birla Retail (More-
Hypermarket) – 20 stores.
• Trent has 10 stores under
retail chain Star.
• Big Bazaar operates 295
stores
Spencer Hyper has 37
stores.
Supermarkets/
Convenience stores
• Aditya Birla Retail-
More Supermarket
(523 stores)
• Spencer’s Daily (120
stores)
• Reliance Fresh (621
stores)
• REI 6Ten (350 stores)
• HyperCITY (20 stores)
Specialty stores
• Titan Industries is a
large player, with 496
World of Titan, 262
Tanishq and 509 Titan
Eye+ shops.
• Vijay Sales, Croma and
E-Zone in consumer
electronics.
• Landmark and
Crossword in books
and gifts segment
Cash and Carry Stores
• Metro started the cash
and carry model in
India – operates 27
stores across Mumbai,
Kolkata, Delhi, Punjab,
Hyderabad and
Bengaluru.
• Reliance Retail
operates 52 cash and
carry stores called
‘Reliance Market’ as of
FY19.
Retail

4. Reliance Retail

5. Supply Chain Starts with Customer & end with Customer
10,901
Retail Stores
> 5
MillionCustomer served every week.
> 6700 cities
And Growing.
1,30,566 Crore
Revenues in FY2019
> 1,25,000
People employed
>500 Metric
tones
Fruits & veg. sold every
day
>100 DC’s across
23 cities
> 10 Million Sqft.
Of warehousing space
Reliance Retail - Introduction

6. STORE AND SERVICE CONCEPTS IN-STORE BRANDS
EXCLUSIVE PARTNERSHIPS – 45 + Global Brands
Reliance Retail – Brands

7.  Started its journey in 2006 with the opening of its first Reliance Fresh
store in Hyderabad.
 Reliance Fresh operates 621 stores in many parts of India and sells over
200 metric tonnes of Fruits and over 300 metric tonnes of Vegetables
every day.
 Three core promises of Fresh Hamesha, Available Hamesha and Savings
Hamesha. Reliance Fresh is a one-stop-shop for fresh shopping, fresh
savings and fresh happiness.
 From fresh fruits & vegetables to dairy, cereals to spices, processed
food & beverages to home & personal care products - they have the
entire gamut of your grocery needs covered.
 Major product-lines are MTS (Made to Stock).
 A typical Reliance Fresh store is approximately 3000-4000 square feet.

8. 5:30 AM – 6:30 AM
Merchandise including daily
indent of fruits, vegetables
and milk products are
received at Reliance Fresh
Store
9:00 PM – 10 PM
• At the end of the day the closing stock is
checked and further details of
replenishment are forwarded to DC.
• Stores closed at 10 PM & by 11 PM, all
store accounting is completed.
12:30 PM – 2:30 PM
Indent of the next day
merchandise is prepared
by the store manager &
shared the same to
Distribution offices.
4:00 PM
Perishable merchandise
are put on discount of
20% after 4 pm
6:30 AM – 10:30 AM
• Store open for customers.
• Updating Stock, rate revision.
• Discount & Promotions on
different product categories
Reliance Fresh - Daily operation

9. Managing Better
Quality at Lower price
Reliance Fresh - Supply Chain Approach
Vendor/Channel Ecosystem
Comprehensive network of
vendors from farmers to large
enterprises
Transparent processes &
communication between
Reliance Fresh and its suppliers.
Robust Vendor & Channel
Ecosystem for Efficient and
seamless supply
Bridging Urban-Rural Divide
Bringing quality products at
affordable prices to smaller tier
cities, meeting demand gap.
Keep in mind regional
preference to offer focused
assortment.

10. Farmers, Growers,
in-house brand
vendor & Branded
FMCG products
Collection centre,
Distribution
centre, cold
storage
Demand Planning
& Inventory
replenishment
Reliance Fresh Store
– Fruits & Veg.
availability
throughout the day
Consumer across
cities
Supply Chain Flow – Farm to Fork Model
## Reliance Fresh procures directly from farmers, and processes it at 47 collection and 14
in-house processing center.

11. Pre-negotiated
Contracts
Reliance Fresh makes
most of its
procurement for
vegetables, fruits, dairy
products, bakery items
directly from the
suppliers based on the
pre-negotiated
contracts
Weed out the
Middleman
By procuring directly
they weed out the
middleman
commissions, costs of
loading and unloading,
transportation costs
and wastage due to
exchange of hands
Suppliers Training
They provide the
farmers with high
quality seeds and
technical knowhow.
Sourcing
Perishable - produce
from the areas which
are near to their
distribution centers.
Non-perishable -
procured centrally by
their merchandising
department
When Demand
exceeds Supply
Procure good
quality produce
directly from the
wholesale
market in bulk
Payment to
Suppliers
The farmers are
made payment on
the spot when
their produce is
bought at their
farms
Procurement & Sourcing – Reliance Fresh

12. Warehousing & Inventory Management
1/4/2021
 More than 100 Distribution centers across India i.e.
Hyderabad, Guntur, Bangalore, Chennai, Pune, Bhiwandi, Bhubaneswar
& many more.
 Reliance Fresh :
1. Just In Time (JIT) Approach
2. Focus on vendor managed inventory
3. Collaborative planning forecasting and replenishment
 Reliance Warehouse, Chennai:
Warehouse Details:
• Warehouse space of 60, 000 sq ft
• Average 3,500 cases inbound and 7,000 line items
outbound to stores everyday.
• Fresh, dry and chilled operations with more than 21,000
SKUs
• 95% automated RF based operation.

13. Perishable Goods - Inventory Management
1/4/2021
Type Specification Product categories
CC1 Cold Chain with -20 C Veg Frozen vegetables, Frozen snacks
CC2 Cold Chain with 0 to -4 C Milk products, Cheese, Paneer,
CC3 Cold Chain with 0 to +4 C fruits - apricot, apple, Leafy veg
CC4 Cold Chain with 4-8 C Papaya, Pine apple
CC5 Cold Chain with 8-12C Mango, Watermelon, Lemon
CC6 Cold Chain at +16-20 C Confectionery and Chocolates
Benefits of Cold Storage for storing Perishables i.e. RTC
(Frozen), Dairy products, RTE (chopped fruits & vegetable) etc.
• Lowers Deterioration Rate of Perishable Foods
• Lowers the Risk of Food Poisoning
• Enables to Store Foods for Longer Time Period
Cold Storage Temperature Classification:

14. Reliance Fresh -Logistic & Transportation
Farmer Fruits & Veg Local supplier
Collection
center
Processing
Unit or DC
Reliance Fresh Stores
Farmer owned transportation
Reliance owned transportation
FMCG
National Brands

15. Cycle of Replenishment
Store will re-stock
the Shelf with
Merchandise
Data is
transmitted to
Vendors/supplier
Customer
made
purchase
Point-of-sale
system
capture
data in real
time
ACTION
Data is
transmitted to DC
for re-ordering qty
of sold product
Order are
generated based
on past sales &
input from
demand planner
At DC, material
is loaded into
truck using
cross-docking
Buying qty is forwardedBuying qty is forwarded
to Contract forming,
Co-operative & nearby
supplier for perishable
goods
Merchandises are
manufactured/pack
ed based on order
received from DC
Requested items will
be dispatched to
Reliance DC by
Collection center
Merchandise is
shipped to
Reliance retail DC.
Available
Merchandise
is forwarded
to outward
team
Merchandise
is delivered to
Reliance Fresh
Stores
Reliance Fresh Merchandise
Replenishment cycle is varies
from 12 hrs to 48 hrs.
Perishable Goods
FMCG Products

16. Reliance Fresh – Reverse Logistic
Reliance
Fresh Stores
Return
CustomerSupplier
Disposal/
Dumping
Distribution
Centre - Reliance
 Reasons for reverse logistics
• Return of goods from customer in
the case of damage.
• Returns sent to manufacturer in the
case of product manufacturing
defect e.g. Maggi.
• Goods expired are sent back to
supplier.
• Poor quality merchandise.
 Perishable, Dairy, bakery goods – Dump or Dispose as per policy
 Non-perishable goods - contracts to return goods at lower price on expiry.

17. Role of Technology
SAP Software
• Mainly used for inventory management
• Daily data is pushed after EOD (End of day) in
to SAP
•Also used for additional functions :
Attendance Membership card maintenance
Retalix software
• Fully customized software
• Used extensively for billing and
cash management
• Connected with SAP (through
bridge software)
R Connect Portal
• Used for performance appraisal
• Uses sales target data of store
managers
• Connected with SAP
Europlex Securities
• Used for Store surveillance
• CCTV, Fire Alarm & other
security System.
RelianceFreshIT
Wireless hand-held Devices
Universal Product Code (UPC)
Virtual shelves
replenishment
Point-of-sale (POS) terminal

18. Supply Chain - Risk
Reliance’s Risk Management Framework covers risk
management activities at three levels:
1. Day-to-day Risk Management
2. Business and Strategic Risk Management
3. Oversight and Governance
Reliance Fresh – Supply Chain Risk
• Supplier delays.
• Quality control issues in the retail supply chain.
• Damage and theft of products in transit.
• Natural disasters.
• Political and civil unrest.
• Large events and important calendar dates not
spotted by logistic team.
• Warehouse – regular inventories shortages.
• Unexpected demand not managed by existing
supply chain.
Impact
High
Insure/Mitigate
Rare
Catastrophe
Low
Occurrence
High
Mitigate/Cancel
Probable
Disaster
Management
Challenge
Externalize
Bad Luck
Accept

19. Retail Industry – Top Trends
Solutions to Improve Waste Management in Retail Stores
• Product recycling.
• Take-back programs.
• Cutting down on packaging waste.
• Lowering food waste through innovation and philanthropy.
• New technology to solve an age-old problem.

20. Merger & Acquisitions
29th August 2020
19th August 2020
1st May 2019

21. References
• https://relianceretail.com/reliance-fresh.html
• https://www.ril.com/ar2018-19/mda.html
• https://www.ibef.org/
• https://www.businesswire.com/news/home/20190514005589/en/What%E2%80
%99s-New-in-the-Retail-Industry-Infiniti-Research-Reveals-the-Top-Trends-and-
Market-Updates-to-Watch-Out-For
• https://sensanetworks.com/blog/5-solutions-to-improve-waste-management-in-
retail-stores/
• https://global.hitachi-solutions.com/blog/supply-chain-risk-management
• https://www.aninews.in/news/business/reliance-retail-to-acquire-retail-
wholesale-logistics-warehousing-business-of-future-group20200829221723/
• https://www.business-standard.com/article/companies/ril-s-online-marketplace-
to-have-biggest-hyperlocal-logistics-network-119050400881_1.html
• https://en.wikipedia.org/wiki/Reliance_Fresh