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  

 

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24  April   2019

Rsvp :  hcp@RecruitGuru.com

 

 

 

 

 



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