Business Analysis of Reliance Industries of India: Reliance Fresh

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 are...

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... that to cover smaller area they have a regional warehouse available and other is they have their own transportation system. Therefore SRS value bazaar deliver faster than the Reliance Fresh.

Wastage: Wastage is a problem for both the retailers. Both the perishable and non perishable items may be out dated without sold. To tackle with this problem both of them are doing different strategies, as reliance fresh directly procure from the farmers they get reasonable rates of items from the farmers and if the product is unsold then might be they sold them to the whole sale market with same rates or at cheaper rates. Whereas SRS procure strictly to the available demand of that items. For them demand forecasting is more important. For non perishable items both the retailers have return policy with the distributors. So the product is returned if it is outdated.