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Reliance Fresh

Reliance Fresh

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Published by imad rehman
Distributed Management
Distributed Management

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Published by: imad rehman on Jan 16, 2011
Copyright:Attribution Non-commercial

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04/04/2012

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Marketing Management II Sales and Distribution
Channel Study of 
 Reliance Fresh
Introduction
 
Reliance Fresh is the convenience store format which a part of Reliance Retail limited, a fullysubsidiary of Reliance Industries Limited. Reliance plans to invest Rs 25000 crores in thenext 4 years in their retail division.RRL launched its first store in Hyderabad in November 2006; major focus was on sellingfresh fruits and vegetables at lower prices by eliminating the middle men and intermediaries. Now it has more than 560 reliance fresh outlets across the country of which 117 are in Delhiand plans to increase this number to 784 to have pan-india presence by 2011. These storessell fresh fruits and vegetables, staples, groceries, fresh juice bars dairy products and nonvegetarian products.Stores, size varying from 2000-4000 sq ft, are located in the radius of 1-2 km of each other  providing a good coverage of the area. Reliance retail has decided to reduce its exposure tofruit and vegetable business and position itself as a pure play super market and will focus oncategories like food, auto accessories, FMCG, with food accounting for most of its business.High quality products are offered to the customers having better shelf life and moreconsistent quality. Company has expanded its supply chain management and it is capable of handling it rapidly growing stores network effectively and efficiently.When stores were launched, there was some initial problems post launch due tocircumstances prevailing in West Bengal, Orissa and U.P.In 2008-09, Reliance fresh limited had a turnover of Rs 1778.06 crores and reported a loss of Rs 249.30 crores.
Structure of Channel
 
The vegetables are collected in villages from farmers directly.
They are submitted to Collection Centres (CC) like Baktawar Pur, Khewrada, Hapur,Patodi, Panipat,etc.
Payment and quality checks are done in collection centres.
From CC they are transferred to Distribution Centres (DC) via Reliance own logisticalunits. Kundli is the DC for Delhi/NCR.
If the capacity is not fulfilled by the collection centre then National sourcing is used
This leads us to the next and final step in the process, i.e. the local Reliance Freshstores.The order for new vegetables has to be placed one day before. Till evening the stock is indistribution centres. At night it is transhipped to the local store. So there is a delay of one dayfrom farm to the stores which are 113 in New Delhi.
The distribution centre and the local stores are rent based.
 NationalSourcing NationalSourcing

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