Restorative Circles Creating conditions for realizing the gift of conflict.
Supply chain development under conflict conditions- Case ... · PDF fileSupply chain...
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Supply chain development under conflict conditions-Case of Nepal
Raj Kumar Bhattarai
Nepal Commerce Campus
Tribhuvan University
November 11, 2014
A presentation on:
Oxford Retail Networking DayInstitute of Retail Management
Säid Business School
University of Oxford
By:
The basics
• Region: Nepal
• Context: conflict conditions
• Industry: poultry
• Problem: business sustainability
issues and challenges
• Work: case study in Valley Group
The roadmap
• Search of a firm doing business exceptionally well
• Timeline preparation
• Observations, interviews, and discussions
• Analysis and interpretation
• Lessons learned
Nepal
• Landlocked mountainous Himalayan country
• Multi-cultured, multi-lingual and multi-religious
• Poor transport infrastructure
• Power shortage of about 12 hours everyday
• Political conflict and insurgency
The conflict conditions
• Frequent lockouts, general strikes, security lapses,
shortage of materials, parts and supplies
• Absence of law and order
• Jealousy, rivalry, threatening, kidnapping, and
assassinations
• Chaos, uncertainty, and insecurity
The poultry market
• Backyard farming to industrialized farm farming
• Religious and cultural implication of poultry keeping
• Optional poultry farming (only for guaranteed sales/profits)
• Absence of poultry supply chain (irregular/occasional supply)
• Poor regulatory mechanism
The issues
• How to sustain a business under conflict conditions?
• What strategy practices best serve poultry market in
economies like Nepal
Major challenges
• Mobilizing scarce resources
• Ensuring product quality and standards
• Meeting product delivery schedule
• Getting support services
• Ensuring product/service ownership
Valley Group and the poultry supply chain
Poultry care (From overseas)
Feed stock (Valley Feed)
Hatchery (Valley Poultry)
Farmers (Individual/industrial)
Live broilers (Valley Mart)
Poultry products (Individual customer)
Slaughtering Processing Distributing
(Valley Cold Store)
Poultry products
(Industrial customer) Great grandparent Foundation stock
Genetic engineering
Grandparent
Primary breeder
Parent stock
Breeder
Parent stock
(From overseas)
Supply chain network actors and products
Major Items
Major actors in the supply chain of the Valley Group
Breeding
Farm
Valley
PoultryFarmers
Valley
Feed
Valley Mart Valley Cold
Store
Inputs
Primary
breeder
Feed
Medicine
and vaccine
Breeder
chicks
Feed
Medicine
and vaccine
Chicks
Feed
Medicine
and
vaccine
Food
grains
and
remains
Other
items
Live broiler
Feed Live broilers
Outputs
Breeder eggs
Breeder
chicks
Eggs
Chicks
Live
broilers
Food
grains
Remains
Feed for
poultry
and
cattle
Live broilers
Poultry: whole
chicken, parts,
and
processed
items
The business assumptions
• Competitive rivalry in business does not work best (प्रतिष्पर्धाले व्यवसधयलधई उँभो लगधउँदैन)
• Work of a business firm must benefit others first(कम्पनीको कधमले सवाप्रथम अरुको भलो गननापर्ा)
• Only changes are permanent; rest are temporary (परिविान मधतै्र सनतनतष्िि हो, बधँकी सबै अतनतष्िि हुन)
• Supply chain network is an armour of a business firm (आपनतिा संजधल व्यवसधतयक संस्थधको कवि हो)
• Network actors and employees are partners for quality (आपनतिा संजधलकध सदस्य ि कमािधिीहरु गनणस्ििकध सधजेदधि हुन)्
• Breaking own performance record is a real growth(आफूले आफ ैँलाई जित्नु न वास्तजवक उन्नजत हो)
Major lessons from the case study
• The generic strategies (like cost leadership, differentiation) do not
work best under conflict conditions
• Competitive rivalry should be avoided in business
• Business plans are weaker; contingent forces are stronger
• Buyers prefer regularity in supply first
• Transparency and secrecy both are must during conflicts
• Business network of reciprocal interdependence for
regularity and sustainability in business
Questions
Raj Bhattarai
Thanks
Raj Bhattarai