2012

MIS report on Reliance Fresh

The project report describes the study conducted on retail sector & their supply chain system. The study was conducted at RELIANCE FRESH located at FOOTI KOOTHI ,INDORE

Submitted to:Dr. Vishal Khasgiwala

Submitted by:Prachi Jain Priya Soni Sunayani Porwal

Sapient Institute of Management Studies 7/13/2012

DATA collection:_
Primary data: Primary data is collected trough personal observation as well as form the logistic head of the reliance fresh located at footi kothi , Indore. Secondary data: Some data about the reliance fresh is collected through the various e journals, magazines & also from various websites.

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Content:
1. About Reliance Fresh. 2. History 3. Growth of Reliance Fresh. 4. Objectives. 5. Product availability. 6. Supply Logistics..

7. Inventory management and logistics

8. Recommendations.. 9. Conclusion...

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Introduction of reliance fresh:

About
Reliance Fresh a convenient store format, is governed by the Mukesh Ambani and is the most important part of Reliance Industries retail Business. Reliance Ltd. has planned to invest more than Rs. 25000 crores in the retail division. It also comprises more than 560 reliance fresh stores all over the country. The outlet sells fresh fruits, staples, dairy products, fresh juice bars, groceries and vegetables. A distinctive Reliance Fresh outlet is around 3000 to 4000 sq. feet and accommodates catchment area of one to three Kilometers.

History of Reliance Fresh

The Reliance Retail had to face various difficulties before the launch of Reliance fresh, because of the various circumstances prevailing in Orissa, West Bengal and UP, along with the news focusing on the dearth of vegetables and fruits stocks. The retail business of Reliance then minimized its exposure in vegetable and fruit business, as a result established Reliance fresh positioning a pure super market play focusing on various categories like IT, consumer durables, home, FMCG and food. The retail company of Reliance may not supply the vegetables and fruits in a few states, the Reliance Fresh decided to not to race with local wholesalers partly because of the political reasons as well as its incapability to maintain a healthy supply chain.

Growth of Reliance Fresh

The first ever a Reliance Fresh store was established in Hyderabad, wherein the company, mainly focused on the fresh produced vegetables and fruits at comparatively low price along with an introduction of farm to fork theory. This was the idea, which was anticipated by the company was to take the supply direct from the farmers and then sell straightaway to the
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consumers removing the middle-men off the beaten track. Reliance introduced several formats in the marketplace to cater to needs of common people, which includes Reliance Fresh, Reliance Super, Reliance Footprint, Reliance Timeout, Reliance Jewels, Reliance wellness, Reliance Mart and Reliance Digital, to name a few. In addition to this, the Reliance Retail also entered into a treaty with Apple, which is a leading Information Technology company, to set up a series of Apple Specialty Outlets branded as IStore, with its first ever store in Bangalore. With an idea to produce inclusive prosperity and growth for farmers, consumers, small shopkeepers and vendor partners, Reliance Retail was set up in order to lead the foray of Reliance Group into an organized retail.

Objectives: To provide high quality products to its customers. To reduce spoilage through its state of-the-art supply chain & logistic networks. To enrich customers shopping experience through customized offer, private labels & value for money merchandise. To foster relationship with partners that will create new avenues of value enhancement for customers. To bolster its agribusiness & dairy value chain to support its rapidly expanding store footprint. To ensures fair & timely payments to farmers.

Product Availability:
Although Reliance Fresh is mainly concerned about stocking fresh vegitables and fruits but due to some political controversy they mainly focus on the household products and FMCG products. The product details are listed below:

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Fresh fruits Vegetables Chocolates Confectionaries Cold drinks Freeze items like butter, ice-cream etc. House hold products Toilet items Spices and dry food Office stationeries

The product displayed in shelves in such a height so that they can be easily availed by the customers and customers can compare the product specifications and price.

Supply Logistics:
Current supply chain of Reliance Fresh: Always buy from local farmers, never from the mandies. Established the rural business hubs in many parts of the country. The objective is to make the entire value chain more effective and responsive.
LOCAL FARMERS

COLLECTION CENTER LINKED WITH CONSORTIUMS (here grading and standardization takes place)

RELIANCE FRESH OUTLETS

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Inventory management and logistics:

The shelves are refilled during the mid day (generally around 2:00 to 3:00) when the customer pressure is very less. As per the store manager they generally refilled the stores twice or thrice in a week depending upon the sales of the products. Like as the fruits and vegetables are highly perishable items so the stock is relatively less and are refilled more often than others. The vegetables are kept in a low volume as they stay only for a day, whereas the fruits kept in specially designed shelves where the fruits stay fresh for a longer time. As per the store manager, they have a particular source for all the reliance stores in Indore from which the products are distributed in each of the reliance fresh store according to the need and requirements. Though he has not disclosed the overall inbound logistics strategy in his store, he told the reliance freshs inbound logistics strategy all over the India. They have their own Reliance Logistics Ltd. Part of Reliance Industries Ltd, currently handles Reliance retails logistics service.

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Recommendation (as per observations at selected location)

Reliance fresh super value must concentrate more on the fruit & vegetable section. With reference to the Indian shopping mentality the store has to ensure that the quality of fruits & vegetables is to be maintained as per the unorganized retail sector. Reliance fresh must concentrate more on Customers Service Associates (CSA) because of lack of communication with customers. If we talk about Indore then there are only 9 Reliance fresh. So the company must focus on opening more outlets because they are in the business of selling daily fruits & vegetables.

Conclusion:
With the growing retail concept Reliance Fresh is really a fresh air in the arena of vegetable and fruit market. But due to some political and local problems all Reliance stores are not allowed to keep vegetables and fruits according to their goal.

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