Fu­ture to Ramp Up Food & Gro­cery Sup­ply Chain

The Economic Times - - Brands & Companies - Ra­sul.Bailay@ times­group.com

New Delhi: Kishore Biyani’s Fu­ture Group is ramp­ing up its food and gro­cery sup­ply chain, even as this seg­ment is set to be a bat­tle ground for global re­tail­ers in the coun­try with Wal­mart buy­ing Flip­kart and Ama­zon eye­ing stakes in gro­cery re­tail­ers.

The coun­try’s largest re­tailer plans to in­vest ₹ 500-800 crore in the next four years to cre­ate a na­tion­wide food sup­ply chain net­work of re­frig­er­ated trucks and tem­per­a­ture con­trolled dis­tri­bu­tion cen­tres (DCs) to even­tu­ally man­age the en­tire sup­ply through this net­work, top of­fi­cials said. “We are cre­at­ing a whole new food dis­tri­bu­tion chain that will help our re­tail and brand dis­tri­bu­tion busi­ness,” Biyani said.

Cur­rently, Big Bazaar hy­per­mar­kets fol­low a hy­brid sup­ply chain model where stores are mostly supplied food and FMCG prod­ucts directly by com­pa­nies such as Hin­dus­tan Unilever and Col­gate Pal­mo­live, with some amount of sup­plies hap­pen­ing through the com­pany’s dis­tri­bu­tion cen­tres. Fu­ture Group is try­ing to change it by sup­ply­ing its en­tire food and FMCG from dis­tri­bu­tion cen­tres — to be lo­cated within a range of about 200 kilo­me­tres of each of its re­tail out­lets. The DCs will be backed by tech­nol­ogy that will give real-time in­ven­tory lev­els in stores to help them re­plen­ish stocks at fre­quent in­ter­vals.

“We are mov­ing from the di­rect-to­store model to DC-based model and all the re­plen­ish­ment will be done through DCs,” said Mayur Tosh­ni­wal, CEO at Fu­ture Sup­ply Chain So­lu­tions, the lo­gis­tics arm of Fu­ture Group. “The re­plen­ish­ments will be much faster and more fre­quent.”

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.