SCM_case_group1

8/7/2019 SCM_case_group1

1/25

Case study Presentation

Presented by :Amit KumarShilpa DhawanPrakash TiwariSumit Kr. Sharma

Agriculture produce distributionsystem in INDIA


2/25

Ov er v iew

Indian agriculture and farming

Problems in agricultureProblems of distribution systemCurrent distribution systemComparison with modern distribution systemImpact of organized retailSuggestion for improvement


3/25

Indian agriculture and

farming

72% in rural areas.25% share in GDP.2nd largest producer of vegetables next to China. Accounts for15% of world.Largest producer of fruits. India having 52% cultivation landcompared to world average 11%.

Fresh fruits & vegetable constitute around 10% total agri.

production of the countryAgriculture and allied sector employs 67% of population.


4/25

Problems

Wastage and deterioration in the quality of F&V. from harvest to consumption up to 20-40%.Several intermediariesLack of transparency in pricesPoor marketing infrastructure


5/25

CO NTD

Poor linkage of marketing channelFarmer has no choice to decide price.More risk and less realization to the farmer.Risk to maintain hygiene and high shelf life.


6/25

CO NTD

N ever being the decision makerIncomplete info. on rainfall, water table,& availability of power.

Several consolidators and dependency of farmers due to instant need of money.


7/25

CO NTD

Lack of accessibility of nearby

competitive market.Poor facility for

Grading & Standardization

Logistics & warehousing


8/25

Current Distribution

System

Highly fragmented and unorganised.Several players.Perishability of produce.


9/25

CO NTD

Intermediary in agriculture.Hygiene levels are poor.Price is not reasonable to farmers.

Huge post harvest losses


10/25

Change makers


11/25

M odern Value Ch ain in F & V


12/25

Response of change

N ew impetus for rural growth.

Organized distribution system.

Effective use of natural resources.


13/25

CO NTD

Profitability & global recognition.Improved grading & standardization.

Advanced logistics, warehousing, value

addition.Education leading to improved P&P.


14/25


15/25

Comparison of prices In both systems


16/25

Comparison of wastage In bothsystems


17/25

O rganised Retail

Entry of retail giants in the Agri-business.In urban areas organised retailgrowing rapidly.

What are the impacts????????


18/25


19/25

Suggestions

Establishment of Farmer s co-operativesMerger and buy-out of weak retailers by a

stronger one that would give a newhorizon to the small retailerSetting up of franchisee organization.There must be good network connectionbetween retail organizations, the suppliersand other channel members to usecompatible technology.


20/25


21/25

CO NTD

Ensure an end-to-end holistic approach

covering production, post-harvestmanagement, processing and marketing toassure appropriate returns togrowers/producers.Promote R&D technologies for production,post-harvest management and processing.


22/25

CO NTD

E nhance acreage, coverage andproductivity through:

DiversificationEx tension of appropriate technology to thefarmers

Value addition should be there at all links of supply chain.Farmers should be educated aboutcalculating margins.


23/25

P roposed model .

Collectioncenter

Coldstorage/D C

O rder center

Value Addition

Consumers

Village


24/25

S alient Features .

M odel is feasible only in metro citiesCold chain enabled supply chainHigher & busy class is targetedOnline & on call order systemHome deliverySupply of F M CG along with F&VScheduled order & delivery timeGrading & sorting at collection center as well as at DC

Three types of gradeGrade A : M ain consumersGrade B : Lu x ury hotels & big restaurantsGrade C : Dhabas & highway hotels


25/25

SCM_case_group1

Documents

Transcript of SCM_case_group1