PARTNERS AT THE

POINT OF SALE
INTRODUCTION
 Moments of Truth
 Customer selects the
product
 Consumer uses the
product

 POS - Point of Sale

 Actual location where
the monetary
transactions between
the buyer and the seller
of goods take place
 True centre of
manufacturing retailing
universe
SHELF CENTERED COLLABORATION
 Manufacturers and retailers to recognize the full
power of the shelf
 Shelf Back and Shelf Forward

With “shelf-centered collaboration,

”manufacturers and retailers can finally put the
right product on the right shelf at the right time
for the right consumer.
SHELF CENTERED VALUE CHAIN
 Your friendly neighbourhood store in
an area of 1500 – 2000 sq feet

 Fresh fruits, vegetables, staples,

dairy and FMCG products

 First foray into retail by RIL

 900 stores in 80 cities across 14

states

 5 million customers following the

Loyalty Program `Reliance One`
 Basic Reason for entering into
Food Retailing
 Capture 350$ billion Indian Retail
Market
 Build a high-profitability business.
 Grossly inefficient food supply
chain provides
potential for huge profits.
 India Ranks 1st position for Retail
Investment Destination.
TRADITIONAL SUPPLY CHAIN FOR FRESH
PRODUCTS
 CURRENT SUPPLY CHAIN OF
RELIANCE FRESH

 Always buy from local

farmers never from the
mandis .
 Established the rural
business hubs in many
parts of the country.
 The objective is to make
the entire value chain
more effective and
responsive .
SHELF DISPLAY
 Shelves indicate Reliance Fresh’s higher margin
objectives.

 Most of the staples are under its own private label

brand i.e. “Reliance SELECT” for staples and “Dairy
Pure” for Milk Products.

 Except a very few packs of Nestle’s Maggi, MTR’s

masalas or Pepsi Lays Chips, there is a very little shelf
space given to big brand owners of the country.

 Private labels offer far better margin to the retailer

than branded products .
CONTINUE.....
 Shelf Talker – To communicate promotions to
shoppers

Diwali event Colgate event

IT IN RELIANCE RETAIL AND
POS
 IT is used to manage & plan their inventory ,
to reduce procurement cost , electronic
ordering , electronic fund traansfer etc.
 Supply Chain Management
 Helps them to track their inventory
movement from supplier’s to point of sale.
 CRM
 Helps them to understand customer
demand pattern.
 Business Intelligence
 Able to understand eco system of retail
business
 Retalix
 Handles multiple store format and hardware
systems, helps to adapt to rapidly changing
market.

 Oracle
 With this software they are able to forecast &
demand planning accurately
 It helps the business to reduce suply chain
costs
 Accelerate Inventory Turn Over Process
 Handles Different kinds of pricing &
promotions
MICHAEL PORTER’S VALUE CHAIN
MICHAEL PORTER’S VALUE CHAIN
– PRIMARY ACTIVITIES

 Inbound Logistics : Supply directly from farmers

 Operations : Cleaning, Grading, Packaging, Pricing
 Outbound Logistics : Shelf Placing and Retail
display in stores
 Marketing and Sales : Promotional Offers and
Advertisements
 Service : Customer Care Management
 MICHAEL PORTER’S VALUE CHAIN
PRIMARY ACTIVITIES - OPERATIONS

 PE Extruded nets are used to pack

 vegetables individually wrapped
for enhanced shelf life.
 Thermoformed PP Trays to hold 4-6 large
fruits with Stretch Cling Wrapped films for
good visibility and shelf life.
 Laminates are used to pack fresh / cut
vegetables and fruits, offer a clear view and
extended shelf life
 Preserves food by removing moisture
(Drying)
 MICHAEL PORTER’S VALUE CHAIN
PRIMARY ACTIVITIES - DISTRIBUTION
 Fruits
Prevent browning and loss of vitamin C (Sulfuring,
Blanching, Sulfite Dip, Ascorbic Acid solutions)
 Vegetables
Water blanching and steam blanching
 Range of dried F & V, marginally processed as a healthy
snack.
 Vacuum packaging for Bulk handling and extended shelf
life
PORTER’S VALUE CHAIN
SECONDARY ACTIVITIES
 Infrastructure
 Store Area of 1500-2000 sq feet

 Human Resource Development

 Technology Development

 Procurement
THE ROAD AHEAD
 Two different retail formats to be launched
 Feel Fresh
 Area of 3000-5000 sq feet
 For fruits, vegetables and staples
 Feel Fresh PLUS
 Area of 10000 – 15000 sq feet
 For fruits, vegetables and staples, apparels, consumer
electronics, FMCG and medicines
 Ranger Farms
 Whole sale formats of to be replicated for all the
Fresh Stores
COMPETITORS
RECOMMENDATIONS
 Improve revenue by concentrating on
existing customers

 High Standards of Freshness and Quality in

the F & V section has to be maintained as as
customer didn’t find Freshness and Quality

 Queuing problem still exists at the billing

counters which need immediate attention