Backward Integration of Short Shelf Life Period Perishables at Supermarkets- a Case Study

Abstract

Supermarkets are the one stop solution for urban consumers these days. Similar products having different brands, colours, flavours etc are being available under a single roof. Supermarkets are specifically bulk purchasers. They try to purchase the non-perishables as well as perishables in a large quantity with a high discount; so that they can easily sell it to the consumers at less price as compared to the local market. But, in case of short shelf-life period perishables, this strategy can't be implemented. Especially in the case of fruits, and ready to cook vegetables, supermarkets are not that much competent. In case supermarkets which purchase vegetables, and fruits in a bulk manner to get high discount, it must invest upon proper refrigeration, results in a huge electricity bill. High amount of food waste Is done by supermarkets. Foreg. Tesco, London & Sainsbury, London; had faced lots of food waste as per BBC news. In India, Reliance Fresh{ 13 J had also faced loss for the last 7 years and was forced to shut down some of its centres because of great loss. ASO (Automatic Store Ordering) software especially helps in case of non-perishables and semi-perishables, but it fails in case of perishables having short term shelf-life period. The major problem is the supply chain pattern of fruits and vegetables. Supermarkets get very Jess time to market those vegetables, fruits, flowers, bread etc. This report comprises of proper backward integration for vegetables and fruits that can be grown locally. It also deals with effective disposal of these perishables.