GMBA: Apr 09 Division B
ITC: E Choupal Group No – 4
Shivangi Joshi - GAPR09IT203 Swapna Pai – GAPR09IT207 Sahil Bansal - GAPR09IBWM160 Chandrasekhar R. M. – GAPR09IT217
Suchint Sahny–
Understanding Rural India Demographic s
Status: Agriculture
Status: Farmer
Population
Self Sufficiency
Poverty
Contribution to GDP
Net Exporter
Difficulty to sell
Employment
Inefficient
Exploitation of Farmer
Background and Usefulness Farmer Risk taking ability
EChoupal Market Led Model
Low Investment
Advantag e India
Competitiveness
Rural Prosperity
Higher Productivity
Increase Demand
Higher Incomes
Increase GDP
Risk Capacity
Indian Economy
Low Productivity Market Orientation Low Value Addition Low Margin Exploitation
Increased Investment
Mandi Operations Inbound Logistics
Display and Inspect
Auction
Bagging & Weighing
Payment
Outbound Logistics
Drivers of Supply Chain • • • • • •
Facilities-Computers located Inventory Transportation Information Sourcing Pricing
Business Model Farme r
Farme r
Farme r
Price Traders Dictated by Sanchalak the Mandis /Middle the Mandi Middlemen men
Price Dictated by
Exporter Wholesal Sold to exporter such as er/Distrib /wholesaler/distributo ITC utor r at higher prices
Supply Chain
Overview
Samyojak
Farme r Farme r
IT Procuremen t Hub
Farme r
Sanchal ak
Transaction Costs under Mandi and EChoupal Systems Costs Per metric Ton
Farmer (Mandi)
ITC Mandi
Farmer eChoupal
ITC eChoupal
Commission
0
100
0
50
Handling Costs
50
10
0
0
Labor Costs
50
70
0
85
Bagging and Weighing Costs
70
75
0
0
250
0
100
Transportatio 100 n
Advantages of the model • Reduction in costs due to intermediaries • Removal of intermediary manipulation of quality • Better risk management by means of stronger information infrastructure • Sanchalak and Samyojak provide correct bottom-up information • Helps establish long term relationship with farmers (direct suppliers)
Key Success Factors: Self Sufficient Infrastructure
Thorough knowledge
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Challenges faced….
ITC’s Mission:
“Improve the Quality of Life in Rural India.”
Thank You