PROJECT SOS

Co Created by

Stakeholder Feedback

SOS is a game changer in the global, multi-stakeholder tea industry

ROBUST VENDOR RELATIONSHIP

SEGMENTATION BY QUALITY BANDS.

BREAKS GEOGRAPHICAL BOUNDARIES

QUALITY STANDARDS WITH VENDORS.

DEDICATED SUPPLY CHANNEL

TEA OFFERED THE DAY AFTER PRODUCTION. AN UNIQUE SELLING

PROPOSITION

NO PHYSICAL/MANUAL NEGOTIATIONS

ROBUST AUDIT TRAIL AND HIGH TRANSPARANCY

EMPOWERS THE YOUNGER GENERATION OF SUPPLIERS

SOS CAN BE ADOPTED ACROSS TEA PRODUCING REGIONS IN THE WORLD

First Online Reverse Auction for Tea

SOS: Concept and Impact

CONCEPT Online Platform

Multiple Suppliers

Robust Price

DiscoveryTransparentProcure

tea directly

INDUSTRY

IMPACT

Change in 300 year old practice

TGBL First Right of Refusal

Faster cash

realization

Mutually beneficial buyer-vendor relationship

Removal of intermediaries

SUPPLIERS

2.3% Savings per KG

50% Time Reduction. Auditable

Transparency.

Reduction in Sample Tasting Efficient use of

skilled resources

Partner to TGBReduced Sampling

Reduction in costs. Determine own

selling price

SOS :TGBL and Mjunction leveraging core competencies resulting in first ever on line Reverse Auction

OBJECTIVES Increased Access

1

First Right of Refusal

2

Partnership with the supplier

3

Reduced time and

effort

4Robust Price

Discovery Mechanism

5

• Amongst the largest tea marketers in the world

• Vast tea industry knowledge

TGBL

• Expertise in business process management

• Expertise in leveraging technology solutions

MJUNCTION SERVICES

FIRST ONLINE REVERSE AUCTION OF TEA

INCREASED TRANSPARENCY AND EFFICIENCY

MUTUAL BENEFIT TO

BUYERS AND SUPPLIERS

Streamlined process

1

First Right of Refusal

2

Reduced Transaction

Costs

3

Reduced cycle time

4

Increased access for suppliers

5

SOS : Efficient alternative to the traditional tea buying processes

Tea Production

Auction warehouse for cataloguing and

sampling

Buyers taste tea

E-Auction Takes Place

Sampling to a large number of buyers

Buyers Taste Tea

Price Negotiation

Private Sales

Delivery and Payment Deal is Finalized

Auction Channel

Wee

k 5

Wee

k 3

Wee

k 7

Wee

k 1

Day

4-

6D

ay 3

Day

7D

ay 2

Vendors offer tea on the portal according to

quality bands

Price discovery takes place within 2 hours

Teas are tasted

Day

1D

ay 1

Day

2

Deal is Finalized

Day

2

SOS

94% less time 50 % less time

Social

• Empowerment of small sellers determine prices Positive impact :financial and social status

• Improved cash flow enables timely payment in the sector

• SOS suppliers can be encouraged to become Trust Tea certified

Environmental

• Less samples tasted saves water and energy

• Online solution leading to reduction of paper records

• Direct transportation leading to fuel savings

Benefits

Economic

• Saving per kg at 2.3% of average cost

• No Brokerage cost as charged in Auction buy at 1%

• Access to 24 untapped sellers Production 60 million kg

• Payment realization reduced for supplier 6 weeks to 3 weeks

Future Developments : INTEGRATED PLANNING

STRATEGIC PARTNERSHIP

• Long-term partnership between Mjunction and TGBL lays the foundation for the periodic introduction of technology

• Paves the way for an end-to-end procurement system and complete integration on a single platform

• SAVING POTENTIAL OF INR 2.5 per kg • Represents 1.5% of current procurement cost• 10% of TGB Volumes in India : Saving INR 250 lakh• Potential to scale this to other Buying Countries• TGB Volumes in 2018/19 in India 124 m kg, Right to first

refusal critical

SOS: SAVINGS AND SCALABILITY POTENTIAL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200.00

5.00

10.00

15.00

20.00

25.00

30.00

3.00 3.10 3.20 3.30 3.40 3.50 3.60 3.70 3.80 3.90 4.00

SOS Procure-ment (million kg)

Savings per kg

Percentage increase in SOS

SOS

Proc

urem

ent i

n M

n Kg

Savi

ng in

Rs

per k

g

An increasing trend of savings as the procurement through SOS increases

THANK YOU

...SYNERGY

--- ...OPPORTUNITY SAVING

S O S