Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 23 April 2019

Who needs Fulfillment Centres [ FC ] ? Not Reliance Retail




Akhil Saxena, VP-Customer Fulfillment, Amazon India , says  :


“ We have more than 50 fulfillment centres across 13 States, with a combined storage space  close to 20 million cubic feet


We closed 2018, with  a 1.5 times growth in storage capacity from the previous year


Our fulfillment centre presence in India has grown from one in Bhiwandi when we launched Amazon.in , in June 2013 to 50 such buildings in the past 5 years “




For those 50 FC , this could translate into ,on an average of  400,000 sq ft floor-space area


Now , each such FC might have a “ Civil / Electrical Construction Cost “ of , an average of Rs 2,000 / sq ft


And, very likely, another Rs 2000 / sq ft for internal stacking arrangements / fork-lift trucks etc , taking the total cost to Rs 4,000 per sq ft


Rs 160 Cr for each of those FC ( Rs 4000 / sq ft x 400,000 sq ft )



Rs 8,000 Cr for those 50 FC


====================


But Reliance Retail thinks :

“ If we follow the rules of Amazon , then to cover entire India , we may need to construct / equip , may be , 100 FCs , costing Rs 16,000 Crore



And these may be 20 Km away from a customer ordering an item online




Why not treat each of the 4 MILLION Kirana shops , spread across the country as our FC ?


Each of these Kirana shop is , on an average , 20 ft x 20 ft ( =  400 sq ft  of floor space )


So , I get 400 sq ft ( per store ) x 4 Million stores = 1600 million sq ft of storage floor-space  - as against 20 million sq ft of floor space of Amazon’s 50 FC !



80 times of what Amazon has built , and without spending one rupee !




And, Reliance Retail tells those 4 Million Kirana store owners :



Dear Modiji

( in Gujarat, a Kirana Store owner is known as a “ Modi “ ) ,



#   I will arrange to deliver all of your SKU , directly from manufacturers, and on “ consignment basis “, so you do
     not need to pay anything



     No need for you to register as “ B2B bulk Buyer “ on  Amazon Business “ Business-to-Business online
    Marketplace



#   My system will relieve you of “ Inventory Carrying Cost “. That means, no blocking funds in working
    capital . Remember, for storing your goods in  Amazon FC , you pay a hefty “ Inventory Cost “



#   My delivery persons ( - and, someday soon , DRONES ), will pick up goods from your store . So, you need not
     pay any “ Delivery  Charges “ – as demanded by Amazon when you store your goods in its FC




#   Our hardware/software installed at your premises will take care of all GST formalities ( mentioning your GST
     number on invoices / charging GST amount / filing GST return etc ) . No need to worry on this count !




#   Even if your SKUs are only “ Food /  Grocery Items “, you don’t need to go to Amazon Retail India .


    Our Reliance Retail platform is designed to cater to such “ Roadside-Footpath Sellers



     Our platform will also cater to anyone  operating from his / her home !


 
     This “ Reliance Jio GigaFibre “ based technology will enable millions of  “ Unemployed “ to become “ Self
     Employed “ 

  
   

    [ for full strategy, refer : MA = DA x 4,000,000 ?    ]

 

Related readings :

Weave a Wondrous World [ W3 ]  

Bypass E : Go from D to F 

Jio Hubs : Entrepreneurs Apply  

Re-defining Retail : Maini and Mukesh  

 

====================================================================================================

24  April   2019

Rsvp :  hcp@RecruitGuru.com

 

 

 

 

 



No comments:

Post a Comment