ALIRTEY(unjumble the words)---->>>>>Retail or Reality.

Reliance, bharti, godrej, Birla's .........the list might go enlessly after a decade but all these are synonymous and you may have guessed it right..........Supply Chain Management or Retail. Todays ET prompted me to write my views on this topic. The views will be grossly biased as the article has changed my perspecive towards Retail completely.

Till yesterday i belived these retail giant will revolutionize the 400$ retail market amongst which only the 2% belongs to the organized sector, but the article focussed on these kinds of popular myths. Indeed when you see all the newpapers putting only one view in resonance then you tend the narrow down your thoughts. Now we get to serious business.............

The most lucrative aspect which prompted these big corporate houses to put huge some of crores at stake was
the ROI, which they thought would sum up to as large as 40% of the capital invested. Did any of them had a look at he underlying risks involved all in a hurry they fell for the pie and it may be possible they all are licking thie wounds in years to come.

So what are these risks. Mckinsey report suggested that 25-30% of the perishable goods gets destroyed in the inefficient supply chain, coupled with middlemen the ROI rises to 40%. Other reports sugested that farmers are being grossly underpaid close to only 10% of the actua; market value of the food product, and this can be harnessed into by integration of the fragmented supply chain.


Now the truths about these report cannot be defyed but they did not mention that these inefficiencies can be easily coverted into bucks on table. This is where the pit lies. It is impossible to convert one form of energy to another without loosing some in the processes. Does supply chain also follows same laws after all its a chain of processes.

to be continued......