A STUDY ON Supply Chain Strategies & Warehouse Operation AT VALUE FORMAT RELIANCE FRESH STORE Ravi Takiz,BBSR.

Submitted By Name-Santosh Kumar Sahu Roll Number-11DR004,IMIS

I HEREBY DECLARE THAT THIS ASSIGNMENT TITLED

SUPPLY CHAIN STRATEGIES & WAREHOUSE OPERATION

IS SUBMITTED IN PARTIAL FULFILLMENT OF THE INTERNAL EVALUATION OF LOGISTIC & SUPPLY CHAIN MANAGEMENT, (PGDM -RM),TERM-III TO PROF.MANIDATTA RAY AS A FINAL ASSIGNMENT.

Person With Whom I Interacted At Reliance Fresh Ms.Harapriya Swain Store manager,Reliance Fresh Email-harapriyaswain@ril.com
By: Santosh Kumar Sahu.

EXECUTIVE SUMMARY

In Todays Competitive Scenario Many Retailers Are Dealing With The Same Kind Of Business. So Competition level Is Very High. So The Only Place Where They Can Make The Difference Is Logistics & Supply Chain .So In order To Sustain In The Market & To Increase The Overall Sell By Earning Profit As Well As Retaining Customer You Need To Adopt A Very Effective And Proactive Logistic & Supply Chain.

Intention of this assignment supply chain strategies and warehouse operation of Reliance Fresh for knowing how the things are being executed practically in supply chain. Also this assignment gave me a practical insight of the execution of supply chain and it helped me to learn many things regarding supply chain.

The project work includes collecting data as management trainee at Reliance Value Chain. For this I went to Reliance Fresh store near Ravi tokiz .I interacted with the store manager for that I had my questionnaires with me. On the base of those questions I asked questions and recorded her answer. Questionnaires had total twelve open ended questions.
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INTRODUCTION TO THE COMPANY :

Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of Rs 25000 cores in the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products.
A typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a catchment area of 1-2 km

HISTORY:

Post launch, in a dramatic shift in its positioning and mainly due to the circumstances prevailing in UP, West Bengal and Orissa, it was mentioned recently in news Dailies that, Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail has decided to minimize its exposure in the fruit and vegetable business and position Reliance Fresh 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. The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned.

When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-to-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way. Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various formats that Reliance has rolled out. In addition, Reliance Retail has entered into an alliance with Apple for setting up a chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

PROFILE OF COMPANY :

Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The companys outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and wellbeing products, as well as on educational products and services. The company was founded in 2006 and is based in Mumbai, India. Reliance Retail, Ltd. operates as a subsidiary of Reliance Industries, Ltd.

Headquarters : Industry Type Status

Bombay Area, India : Retail

: Public Company : Operating Subsidiary

Company Size: 10,001 or more employees Founded : 2006

SUPPLY CHAIN STRATEGIES AND WAREHOUSE OPERATION

PRODUCT CATEGORIES
Normally in reliance fresh Ravi Tokiz they have broadly divided their product categories into following type. 1.FRUIT AND VEGETABLES: Under this category reliance fresh deals with all kind of vegetables,like-brinjal,tomato,potato,onion etc and fruits like graphes,banana,apple,green apple,orange...etc. 2.NON FOOD FMCG: Under this they are dealing with all kind of personal care products,as wll as fmcg consumer durables,home care,baby care ...etc. 3.STAPLE: Under this category they are dealing with dal,rice,atta ...etc. 4.PROCESS FOOD AND BEVERAGES: Under this sub category they are dealing with process food like ready to cook and ready to eat,beverages like soft drinks dairy products.

DECISION FOR LEVEL OF INVENTORY & REORDER POINT

Normally in reliance fresh the decison for inventory they follows their it.For this this theY have installed sap software & the level of inventory depends on the sell.When sell happens to a particular point than the system automatically places order to its distribution center for new order. Otherwise store maneger decides it on the base of two parameter that is MBQ(maximum bin quantity) & no of items available inside the store.MBQ is used for stapple items & no of items uded for products .For ex:for maggie reorder point is 150 peices.But store manager madam told me that when there is an offer they normally dont follow anu rules because at that time they get maximum number of products from their distribution center.

SUPPLY CHAIN STRATEGIES FOLLOWED BY STORE MANAGER.

Store manager madam told me that mormally strategie of supply chain is decided at their corporate level.They only follows that .They do buy vegetables from local farmers but for this they have their distribution center locally and nationally,they takes the decision.

DISTRIBUTION CHANNELS .
For reliance fresh Odisha they have three major distribution center.The main distribution center is near Pahal,Cuttack other one is for orissa store is at Kolkata and their head distibution center is at Mumbai.Normally for ravi tokiz store they recieves the inventories thrice in a week,Friday,saturday & Thursday.Also when some goods remain unsold in their store for a longer period of time they do send it to other reliance fresh store.In reliance fresh 90% items are first being collected to main distribution center Mumbai from various supplier then they send it to regional distribution center from main dc.From regional distribution center they further end it to various reliance fresh store based on region.

MODES OF TRANSPORTATION .
Normally in reliance fresh they use road as their route for transportation.Truck is the only veichle that is used widely as modes of transportation at reliance fresh.For collecting vegetables and fruits from local farmers sometime they use small veichle like auto ,van.

TYPES OF TRANSPORTATION SYSTEM.

In reliance fresh all transportation system are in-house.This helps them ti build a cost effective and smooth flow of supply chain.Also relianve has got its own control by adopting in-house transportation system.

KEY ADVANTAGES OF IT
Reliance Fresh uses sap system in their store.This system enables them to track the position of different merchandise in supply chain as well as inside the store.It also helps them to mantain the database of customer.It helps them to reduce shrinkage because every store manager of reliance fresh has an unique password and he/she is only allowed to open the store at morning and if someone else tries to do the same than alaram automatically activates and produces a huge sound.

CUSTOMER RESPONSIVENESS.
Reliance Fresh also believes in retaining customer by giving them value for their money not only this but also they always tries to give some kind of extra benefit to their loyal customer. For this Reliance Fresh has its membership card for its loyal customer. By availing this card a customer can get points at every purchase and after some period when he/she will b having at least 100 points he/she can get discount. The worth of every one point is equal to 70 paisa.

MY OBSERVATION ON RELIANCE FRESH ,RAVI TOKIZ,BBSR

While I was reliance fresh store during my interaction with the store manager I found that the store was an average store. Reasons: 1-Their associates seems confused while serving to their customer. 2-They dont have any product knowledge because for the normal customer query they seeks the help of their store manager. 3.They dont maintain their store properly because you can see the products inside the store looks dirty as well as messy. 4.Maximum customer comes to reliance fresh because it is near by their home. 5.Maximum customer purchase only household goods like,vegetables,stapples,beverages. 5.60% of Reliance Fresh customer visits the store at least twice in a week. 6.Their main catchment area is within 2 km from the store. 7,They mainly targets the local community. 8.Their is a shortage of manpower inside the store.