Food
Perishable x Vegx Fruits x Vegetable x Packed
x Non Vegx Meat x Fish x Poultry
Cold/ Chilled Packed Food (FMCG), (ambient) x Ready food/
Instant food/ x Beverages/ staples
F &V Ambient
F &V Cold/ Chilled
Non Veg Cold/ Chilled
Food ( FMCG)
Non Food ( FMCG)
Hundekari ( village level consolidator) Commission agent in town
Costs x Transportation x Commission x Market Cess( APMC) x Hamali x
Tolai x Tapal ( Admin) Whole seller/ APMC Semi Whole seller
Retailer
India
is the largest producer of fruits & vegetables in the world,
but 30% of the produce is wasted due to lost due to supply chain
inefficiencies. Fragmented/Low technology farming Presence of
Middle men Supply Chain Inefficiencies/Lack of Cold
Storage Facilities.
Non-existent
infrastructure at the wholesale
markets Packing, grading, sorting, cold storges Large amount of
wastage (20-40%)
Fragmented production, leading to fragmented chains No rewards
for quality Traders dominate the chain
No transparency in pricing (farmer end)
Consumer end: vegetables sold on small stores on the roadside
Weighing, bargaining, quality issues
Developing linkages with farmers Investment in visiting the
areas they want to procure
from Developing relationship with farmers Providing
extension Advice through agri-
graduates
Soil testing Production Technology Information on harvesting
(time and method) Post harvest management pre-cooling, grading,
sorting, packaging, storing on farm
Procuring from farmers Farmer loyalty Jack pot mentality
Companies Buy only graded produce from the
farmersx Farmers have to continue dealing with traders. x Lower
than average price for the produce not purchased by the
companies.
Post Harvest Technology, Manpower Learning about post harvest
technology is new for
the company tie ups with technology providing companies (ITC
Ingersoll Rand) Post Harvest Man-power shortages: High turnover of
manpower
Infrastructure Setting up Distribution Centers (Packing,
grading,
sorting and cold storages) All chains are not cold chain
Ensuring
quantity and quality of supply at the stores Procurement from
several sources including
traditional wholesale markets Logistics how many times to
service the stores Technology at the store not all stores have
refrigeration at the stores
Nearly non existent !! Very heavy in investment Power cost Cold
transportation Shortages of Cold Storage facilities and
Refrigerated transport
lead to inefficiency in handling perishables which manifest
itself into wastages
Infrastructure Pre cooling Storage Packing and transportation
Handling Sorting/ Grading
Govt Funded Cooperatives Large Business Houses PPP Training Tax
Holiday ( Cold Chain)/ processing Industry
Better Availability Lower costs to customer Farmer gets due
Infrastructural
facilities ( processing
Plants) Develop linkages between R&D labs and industry
Unawareness about hygienic practices the Indian Meat and Poultry
Market
Establishing
Disease-Free Zones for Rearing
Animals Contractual
Farming as Backward Integration
To the Modern Abattoirs for Meat Production Setting
up of the State of Art-Abattoir-cum-Meat into Packaging
Processing Plants Technology
Allied industries Packers, Exporters, etc
~500 players
Organized FMCG Manufacturer
Unorganized FMCG Manufacturer
~ 10,000 players
1 to 4 per manufacturer Central / Regional hubs
Multi-tier distribution model Products are transported from
manufacturing units via central / regional hubs and state level C
& F agencies to distributors C & F further sell the same to
wholesalers who finally sell it to the retailers, where the product
moves from their Distribution Centers to the retail stores.
1 per state State level Warehouse (C&F agents))
~ 1 to 5 per city / district / town
City / District / Town level Stock point (Company stockist
/Authorized Distributor)
Wholesaler
Rural stockist
Modern Retail Distribution Center
Modern Retail
Traditional Urban Retail
Traditional Rural Retail
The
supply chain in the FMCG market in India is one of the longest
There are as many as 5 levels of intermediaries
involvedx High variation in lead time (1-2 days between each
level, cumulative adds up), x Forecasting lag Creation of
Collections and Credit chain In traditional retail the credit and
collections chain is
created by the manufacturers eager to push products down the
pipeline, In organized retail it is the reverse where the retailer
demands more and more credit days.
High inventory tied up Approx 45 days in the entire supply
chain, FMCG products should ideally be cross docked (e.g. at
retail warehouse level, majority want to cross dock .
However..)
High shrinkage (India has the highest retail shrinkage in the
world (
