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Technology Upgradation a must to eliminate price fluctuations and supply chain inefficiencies

Food & Beverage News

April 16 - 31, 2005

Radhakrishna Foodland Pvt. Ltd., is the only integrated provider of broadline food distribution solutions in India. Known as the broadline food distribution model, this single window approach for sourcing all food, beverages and operating supplies is followed across the world as it helps in streamlining the entire supply chain and avoiding inefficiences that exist therein.

Radhakrishna Foodland Pvt. Ltd, in a E-mail interview with Johnson Napier of Food & Beverage News, asserts that in order to make a mark in the sector, it is necessary to educate the independent retailers and consumers about new technologies including farm-to-plate concept and developing infrastructure to provide fresh and quality food following the food safety standard used worldwide. Excerpts

Could you give a low-down on the food storage industry in India?

The food service and retailing industry in India presents a high opportunity area, but unfortunately majority of food retailers are still limited to few cities or regions, thanks to the lack of facilities available to support them. One of the bottlenecks is that the storage and transportation facilities available in the country are not efficient enough to accommodate the demands from the retail sector. The food storage and transportation industry is in its nascent stage due to the lack of infrastructure and technical know-how.

Who are the major players and what's in store for future entrants in this field?

As outlined above, there is a dearth of organized players who have integrated distribution centers for perishable and dry goods as well as a comprehensive logistics infrastructure given the front end needs in food service and retailing.

How does RKHS or Radhakrishna Foodland cater to this field?

Radhakrishna Foodland Pvt. Ltd (Radhakrishna Foodland Pvt. Ltd.) is the only integrated provider of broadline food distribution solutions in India. The model combines the dual business benefits of outsourcing with those of a single window approach. Known as the broadline food distribution model, this single window approach for sourcing all food, beverages and operating supplies is followed across the words as it helps in streamlining the entire supply chain and avoiding inefficiencies that exist therein. It helps manufacturers and suppliers to route their products through a single distribution platform which helps them to get better penetration, thereby increasing sales, reducing logistics and distribution costs and ensuring integrity of product. A win-win for all the manufacturer/supplier, broadline distributor and customer. Radhakrishna Foodland has its own state-of-the-art food distribution facility at Kalamboli, Navi Mumbai.This facility is built over 33,000 sq. metres, has been designed by international experts and maintains the international food safety USDA, HACCP and CODEX standards. Radhakrishna Foodland Pvt. Ltd. has another distribution centre at Kanjurmarg for dry goods spread over 35,000 sq. ft.

What are the norms to be followed while storing or transporting food?

International food safety standards are those set by USDA, HACCP and CODEX.

Food adulteration and spoilage is quite common during or after storage and transportation.How can this issue be tackled?

Radhakrishna Foodland Pvt. Ltd. provides inbound and outbound transport services assuring hygienic, pilfer proof and customary separation of products, especially extremely temperature sensitive food cargo, fresh foods, ambient staple foods and non-food cargo. Due to these strict norms with respect to fail-safe storage temperature maintenance and high hygiene standards, there is a rare chance of the food becoming spoiled during transportation.

In addition, there are thorough quality checks undertaken both at the time of dispatch, as also at the time of receipt of the food to ensure its appropriate condition.

What is the latest technology available for food storage and transportation?

Controlled atmosphere storage and transportation is the norm followed today for food storage and transportation. This technology refers to the appropriate temperature control controls used for food depending on its nature. For example, non-perishable foods could be stored in ambient temperature. But, perishable produce calls for more temperature controls for its storage and transportation.

What are the challenges facing the industry?

The food service and retail industry in India is not supported by modern food distribution and logistics solutions. The opportunities for organized food retailing, distribution and logistics are immense due to inherent inefficiencies and the disintegrated structure of the Food Supply Chain. As markets mature and consumer expectations rise, strong supply chain solutions that will cut through distribution inefficiencies and increase margin would be a necessity for independent retailers, this is where Radhakrishna Foodland Pvt. Ltd. is making a mark in educating the independent retailers and consumers about the farm-to-plate concept and developing infrastructure to provide fresh and quality food following the food safety standards used worldwide.

One of the key reasons why some categories of organized retail such as clothing and footwear have been able to pick up in India as there has been the availability of organized vendor base. This vendor base is, however lacking for many food products, particularly perishables. That is why we have invested heavily in developing the backend to cater to the larger base. Being the only integrated provider of broadline food distribution solutions in India, we are able to provide our consumers the fresh and quality food at competitive rates because of our ability to handle aggregate and handle scale for which Radhakrishna Foodland Pvt. Ltd. has stood for over the years.

Does the industry face any threat from new inventions and technology arising in the field?

No, rather it will help in building the desired momentum for the organized food service and retail sector as it helps eliminating supply chain inefficiencies which will greatly address issues related to price fluctuations and price sensitivities, it also helps in building the world class infrastructure to compete with the growing demand of the consumer, who is becoming more and more discerning.

One can visit our state-of-the-art facility at Kalamboli where our facility management room is equipped with latest technology and software to monitor the entire operations of the unit and detect loopholes in system if any. Radhakrishna Foodland Pvt. Ltd. has always supported the inventions and technological developments, and today, we allow small food service operators and retailers in India to have access to modern distribution solutions, helping them source most of their products from a single distribution platform with all the supply chain efficiencies.

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