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Issues with Missing Links in Supply Chain

Issues with Missing Links in Supply Chain. Naga , Mumbai . 26 September . Traditional Market Deals with variety in a fundamental way. Agglomeration of highly specialized value-chains. Masha khor. Retailer. Customer. Customized skills & specialization Customized logistics.

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Issues with Missing Links in Supply Chain

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  1. Issues with Missing Links in Supply Chain Naga , Mumbai . 26 September

  2. Traditional Market Deals with variety in a fundamental way Agglomeration of highly specialized value-chains Masha khor Retailer Customer • Customized skills & • specialization • Customized logistics Managed by 5-sets of roles with high-specialization • Information • network Peak Vending hour Skimming price Farmer Aadti Consolidator Mashakhor Retailer Price Disposal Price Green Vending Hour Fruits • Grade wise disposal • Price points to minimize value loss • Flexible pricing at the retail ensures value-perception for price-point Dry Product ownership at different stages ensure effective care and control Cost effective labor for handling and distribution

  3. Eliminating levels in the chain model is not enough to deliver significant value to customers Freshness Perception Traditional Value Chain FARM Village consolidator Mandi consolidator Mashakhor Retailer Mother Dairy Value Chain Delivery Against Market Requirements, Voice of Customer (Proximity to Customers) FARM CGC-PSUA Booth / Shop Receiving Un-Loading / / (Trading Window) QC / Batching Loading The Traditional system scores over the Safal model by focusing on Core Parameters Source : Customer interviews 2004,2008,2012 and Internal Analysis by team

  4. Multitude, Variety and Perishability of the products present great complexity Production Procurement Logistics Front-End • Different requirements for merchandising • Variability in the demand • Local Preferences for products • Lack of Quality Standards • Different requirements of production • Factors contributing to variability • Different requirements for logistics, preservation • Climate & Controlled atmosphere • Diversified areas of sourcing • Lack of volume advantage • Non availability of Agriculture/ Plantation clusters • Geography • Agro-climatic requirements • Biological Requirements • Seasonality • Benchmarking • Grading Value-loss across the value-chain Variability Presents in multiple dimensions Fruits Greens Ripened Perishable Elephants Ready-to-distrib. vs. vs. vs. vs. vs. vs. Vegetables Dry Non-ripened Storable Stars Value-add-reqd.

  5. A deeper Analysis of performance on lead time sets the benchmark Traditional Value Chain Weekly Market MD Value Chain Farm 8-12 hours Farm Farm 8-12 hours 8-12 hours Weekly Market Village Consolidator(Aadti) CGC-PSUA 17-26 hours The lead time shown in traditional & MD value chain is for perishable & highly-perishable items. Lead time for items like Potato/ Onion is even higher 18 -28 hours Mandi Consolidator Receiving Unloading QC Batching Loading 4-8 hours 8-12 hours Mashakhor Retailer 2-4 hours 5-6 hours Booth/Shop Source : Internal Supply chain conducted in 2003-04,2007-08, 2011-12

  6. Morning & Evening Indent/Supply share Morning evening indent/supplies share is about 69% : 31% But sales ratio of morning to evening is 30: 70 Some years ago this percentage was quite different! for sales

  7. Supply Chain: The Critical Links Temperature Integrity Ensuring all the links are in your control. Run Quality • Ensuring the desired quality till the consumer point • random sampling & strict process adherence • Electricity Bills • Run our diesel pumps • Return milk testing Quality • Ensuring the desired quality till the consumer point • Trial runs on vending • 90% + prefer to buy by unit value • FSSAI throws an opportunity and a challenge • Mango and ripening safely! • Loose oil sales ?

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