2

• Reliance Retail Limited (RRL), a subsidiary of the Indian

conglomerate Retail Industries Limited, launched its first
convenience store in November 2006.
• RRL has grown rapidly and operates over 900 stores across
80 cities in 14 States, which include over 750 Reliance Fresh
stores.
• Reliance Fresh is the convenience store format which forms
part of the retail business of Reliance Industries of India .
• It is positioned 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.

3
Inefficient Supply Chain in India

4
5
Reliance Fresh : Supply Chain Model

Model 1: First Reliance Fresh Model

6
Reliance Fresh : Supply Chain Model

Model 2: Wholesale Trading Model (WTS)

7
• Generally located in small commercial
complexes close to 3-4 big residential areas

• Observation: found close to ‘Crossroads’

• Enjoy a clear view from the road

8
• The main idea behind every effort is to make a
bulk purchase
• Saturday and Sunday are considered as
discount and scheme day.
• Rebates and Premiums focusing on bill value
• Audio visual tools been employed
• BOGO & BXGY

9
• Strictly vegetarian
• Product Mix consists of Fresh Fruits,
Vegetables, Dairy products, Frozen Items,
Groceries, cosmetics and Daily Use products.
• Less Assortment but focus on specific product
categories like vegetables, dairy products,
detergents, fruits and daily use items

10
• The pure foods convenience store model of Reliance
Fresh requires far less space than a full-fledged
supermarket
• Most of these outlets need around only 2,000-5,000 sq.
ft
• Simple, colorful but cramped
• Separate entry and exit point
• Chocolates and other kids items were nearby cash
counter
• Vegetables and Fruits items were in display near entry
gate

11
Layout and ambience –
Well Lit, Neat, Bright and Easy to read Signs
• Low prized Private labels
• Discount on bulk buying
• Measures taken to reduce the length of Supply
Chain thereby purchase directly from farmers,
which is in turn sent to distribution centre.
• Two times supply of vegetable and fruits daily
to ensure “fresh”

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Reliance Fresh : Personnel

• 2 shift staff for small stores and 3 shift staff for

larger ones
• 5 to 6 sales persons per shift
• Staff uniform: red, green and blue
• 1 week training given to staff

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Reliance Fresh : Private labels

• Reliance Fresh’s shelves provide an indication that

the group is looking for higher margins. Most of
the staples are under its own private label brand
— ‘ Reliance Select’.
• Excepting a few packets of Nestlé's Maggi, or
MTR’s masalas or Pepsi’s Lays chips, there is very
little shelf space given to the big brand owners in
the country.
• Reason: Private labels offer far better profit margin
to the retailer than branded products of FMCG
companies.

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 Predicting the future with SCM

- Chinar Deshpande V V R Babu

Mani Mulki CIO, ITC
CIO 
Vice-president, IS "SCM aids in
Pantaloon Retail
Godrej Industries decision-making such
"It is feasible to plan
"Supply chain costs as the what and how
for future demand if
will constitute at least of production,
an SCM solution is
20 percent of the transport and
used as a
overall costs by the warehousing—on a
collaborative platform
time a product is daily, weekly or
amongst all the key
delivered to the end monthly basis "
players of a supply
consumer"
chain"
-
 Future of Retail Industry
Supply chain management goes beyond inventory management and
streamlining of supply processes. It is being looked upon as a tool for
predicting the future by retail and FMCG organisations.Priya Jain reports
Sampark to Sampurna

•Godrej had earlier hooked up its distributors through an initiative called

Sampark.
•Now in an effort to connect its retailers, the company is working on an initiative
called Sampurna
•The company has five factories, four warehouses in each region, about 1,200
distributors and half a million retail outlets that are directly billed.
•They have completed 60 to 70 percent of system building and connected 400 ‘A’
class distributors who constitute about 70 percent of the company’s sales by
means of Sampark from Botree.
•Godrej has implemented a customised ERP solution for these distributors who
use it for their daily accounting, material receipts, billing and inventory.
•End of each day, the system at the distributor’s end handshakes with the central
server via the Internet. In this handshake, the details of the delivery channel are
uploaded and the latest price lists downloaded to the distributor’s system.