Business Analysis Of Reliance Industries Of India: Reliance Fresh

2691 words - 11 pages

Reliance Fresh
Reliance Fresh is the Convenience store which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. The company has 563 Reliance Fresh outlets all over the country. It is a type of supermarket. The company mainly focus on procuring the fruits and vegetables directly from the farmers and sell them to the consumers.
Merchandise Details
Products available are fruits, vegetables, dairy products, FMCG products, food commodities and beverages.
Daily Operations of the store
• Store opens at 5.30 am.
• Daily items like fruits, vegetables and dairy products reach maximum by 6 am.
• Merchandises are revised and the store opens for customers at 6.30 am.
• Store manager updates the opening stock.
• He also revises the rate list sent by head office.
• He updates the discounts and the promotions on various product categories.
• The merchandise is checked properly from time to time by supervisor.
• At the end of the day the closing stock is checked and further details of replenishment are forwarded to the head office.
• The cash manager checks the balance.
• The store closed for customers around 10 pm.
• After accounting procedures and the store shut down at 11 pm.

Supply chain Strategies at Reliance Fresh
Procurement:
Reliance Fresh makes most of its procurement for vegetables, fruits, dairy products directly from the farmers and suppliers on the pre negotiated contracts. By procuring directly from the farmers they removes the commission for middle man, costs of loading and unloading, transportation costs and wastage during the exchange. They also provide high qualtity seeds to the farmers and also give them technical education. They source perishable from the areas near to the distribution centres and non perishable FMCG products are procured centrally by their merchandising department. This allows them to procure in bulk and bargain for a better price from the supplier. The perishable products like fruits and vegetables are not kept for more than 2 days, whatever is left is sold back in the wholesale market with lower prices. This strategy is to maintain the quality and also to reduce wastage of unsold products. The non perishable products like FMCG goods are kept till their expiry date. The perishable goods like fruits and vegetables are moved through sophisticated cold chain of cold storages and special trucks.
Supplier Contracts:
Reliance fresh procures most of its perishable goods mainly vegetables through contract farming with farmers nearby areas of their distribution centres. The contract involves price, payment terms, quality and duration of the contract. Fruits are mainly procured from the wholesalers or from mandi. Dairy products are procured from the dairy cooperatives. The cooperatives are given daily demands and they supply directly to the stores. Bakery items are sourced from multiple suppliers located nearby. These products are mainly returned after the expiry date of the product....

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