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The right product, at the right, place at the right time, at the right price and in the right quantity is the mantra of modern retail.
A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these products to the customers.
Definition by Ellram and cooper: SCM as an integrating philosophy to manage the total flow of a distribution channel from supplier to ultimate customer.
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Logistics is derived from the French word loger, which means to quarter and supply troops. An integral part of SCM is logistics Mgt. the main objective of logistics Mgt is to reduce inventory-holding costs and improve profits.
Logistics Mgt defines logistics as that part of the supply chain process that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements. Technological progress and worldwide trade and investment libralisation are presenting new opportunities for countries to harness global markets for growth and poverty reduction. A new premium is being placed on being able to move goods from A to B rapidly.
Structural level Warehouse design and operations Transportation Mgt Materials Mgt
Functional level Information systems Policies and procedures Facilities and equipment Organization and change Mgt
Reliance Fresh yielding daily turnover of Rs. One lakh per store Foot falls per day: 800-1200
Farmer
Aggregator
Whole Seller
Retailer
Customer
Farmers
Store
Consumer
Farmer
Farmer
Farmer
Collection Unit Reliance Logistics Processing Reliance Logistics Reliance Fresh Reliance Fresh Reliance Fresh
The produce from the farmer is collected at the Collection Centre. Goods are sent to Distribution Centre where sorting takes place. Here all the data is entered in SAP database. Every day the store manager of each store raises the purchase order for next day. Total order for all the stores in area is collected by Area Manager Based on availability of goods, the order items are
Manufacturer
Distribution Centre
Store
Items are directly collected from manufacturer . Each store has Minimum Base quantity. Whenever order goes less, system automatically reorders it.