S Deshpabde Group Purchasing

2,020 views

Published on

Published in: Economy & Finance, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,020
On SlideShare
0
From Embeds
0
Number of Embeds
36
Actions
Shares
0
Downloads
53
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

S Deshpabde Group Purchasing

  1. 1. Mumbai Grahak Panchayat’s Innovative Distribution Model Presented by: Shirish Deshpande
  2. 2. Role Model for Sustainable Consumption <ul><li>Norwegian Environment Ministry highlighted MGP’s Distribution System as a Role Model for promoting Sustainable Consumption, at the conference organized by Commission on Sustainable Development at New York in April 1999. </li></ul>
  3. 3. <ul><li>Artificial shortages & scarcities </li></ul><ul><li>Sky-rocketting prices </li></ul><ul><li>Cheating in weights & measures </li></ul><ul><li>Adulteration </li></ul>Unfriendly Buying Environment
  4. 4. <ul><li>Consumer-friendly Distribution Model </li></ul><ul><li>Of </li></ul><ul><li>Buying Groups </li></ul>
  5. 5. Philosophy <ul><li>Growth In Production </li></ul><ul><li>Equity In Distribution </li></ul><ul><li>Restrain On Consumption </li></ul>
  6. 6. How the Model operates
  7. 7. 11 Families Buying Group Group Leader MGP Distribution Model
  8. 8. Indent Indent Consolidation Total Order Bargaining & Negotiation MGP HQ Producers Wholesalers Market Price Plus 7 to 7.5 % FINAL PRICE Final Price Final Price Total Indents PAYMENT WAREHOUSE Unpacking Repacking DELIVERY PAYMENT MGP Distribution Model Purchase Committee
  9. 9. Profile of the MODEL <ul><li>90 products available every month. </li></ul><ul><li>Delivery to 21,632 families through 1574 Buying Groups . </li></ul><ul><li>Product range covers grains, cereals, edible oils, dry fruits, soaps and detergents, cosmetics, hosiery, stationery etc. </li></ul><ul><li>Annual turnover: INR 250 million (US $ 6.09 million ) </li></ul>
  10. 10. Economics of the MODEL <ul><li>System operates on ‘No Profit – No Loss’ basis. </li></ul><ul><li>End price includes Procurement Cost, Transportation Costs and Administrative Expenses. </li></ul><ul><li>Savings of 15-20 % in monthly grocery budget of the household. </li></ul>
  11. 11. Annual Sales Turnover
  12. 12. More & More Families Joining Buying Groups
  13. 13. Benefits to Members <ul><li>Products cheaper in price, better in quality and accurate in weights & measures </li></ul><ul><li>Saving 15-20% in monthly Grocery Bills </li></ul><ul><li>Delivery at Buying Groups’ Doorstep </li></ul><ul><li>Saving of Members’ time & money on transportation </li></ul><ul><li>Focus on Health & Nutrition </li></ul>
  14. 14. How the MODEL promotes Sustainable Consumption <ul><li>Discourages impulsive buying. </li></ul><ul><li>Helps restrain unnecessary or extravagant consumption. </li></ul><ul><li>Substantial savings in fuel consumption. </li></ul><ul><li>Reduces transportation for delivery </li></ul><ul><li>Saves 52,544 kms. transportation per month in Mumbai </li></ul>
  15. 15. How the MODEL promotes Sustainable Consumption (contd) <ul><li>Reduction in Greenhouse Gases </li></ul><ul><li>Employs re-usable cloth bags for wheat, rice and sugar thereby cutting plastic usage. </li></ul><ul><li>Effectively dispenses use of 75,000 plastic bags per month thus eliminates use of 2100 kgs. of plastic per month or 25,200 kgs. of plastic per year. </li></ul><ul><li>Discourages wasteful, fancy packing </li></ul>
  16. 16. Environmental benefit <ul><li>Delivery to 1178 Buying Groups in Mumbai involves 4300 km running of delivery vehicles per month. </li></ul><ul><li>In absence of such a Model , these consumers going to local markets would collectively incur 56,544 km of transportation per month. </li></ul><ul><li>The Model thus effectively saves 52,244 kms . of transportation per month. </li></ul>
  17. 17. Indent Indent Consolidation Total Order Bargaining & Negotiation MGP HQ Producers Wholesalers Market Price Plus 7 to 7.5 % FINAL PRICE Final Price Final Price Total Indents PAYMENT WAREHOUSE Unpacking Repacking DELIVERY PAYMENT Environment Friendly MGP Distribution Model Lesser Pollution Fuel & Resource Optimization Time Saver
  18. 18. Sustainable Consumer Movement <ul><li>Promotes Sustainable Consumer Organization </li></ul><ul><li>Sustainable Consumer Movement. </li></ul>
  19. 19. KEY ELEMENTS OF MODEL <ul><li>Operates largely on voluntary efforts </li></ul><ul><li>Based on Members’ faith & trust </li></ul><ul><li>Driven by Collective Leadership </li></ul><ul><li>Guided by Social Philosophy </li></ul><ul><li>Promotes Sustainable Consumption </li></ul><ul><li>Establishes Consumer Sovereignty </li></ul><ul><li>Operates on ‘No Profit-No Loss’ basis </li></ul>
  20. 20. KEY ELEMENTS OF MODEL (contd) <ul><li>15 to 20 % Savings in grocery bills </li></ul><ul><li>Service-oriented and not commercially-oriented </li></ul><ul><li>No stocks, No Inventories </li></ul><ul><li>Discourages MNC Products </li></ul><ul><li>Special emphasis on Health & Nutrition </li></ul><ul><li>Predominant women participation & empowerment </li></ul><ul><li>High satisfaction level </li></ul>
  21. 21. What is needed to start Buying Groups <ul><li>Service-oriented approach </li></ul><ul><li>Availability of dedicated voluntary activists coming from local areas </li></ul><ul><li>Involvement of house-wives with their natural sense of care and concern </li></ul><ul><li>Inspiring and trustworthy Leadership </li></ul><ul><li>Small team of ladies, good at tasting and selecting household products </li></ul><ul><li>Sense of social responsibility </li></ul><ul><li>Sensitivity for environment </li></ul>
  22. 22. The GLOBAL WARMING may be “ THE INCONVENIENT TRUTH ” But THE CONVENIENT WAY OUT is MGP’S UNIQUE DISTRIBUTION MODEL
  23. 23. If you wish to replicate this model in your country <ul><li>Contact: </li></ul><ul><li>Shirish Deshpande, </li></ul><ul><li>Mumbai Grahak Panchayat </li></ul><ul><li>[email_address] </li></ul><ul><li>or </li></ul><ul><li>mgpanchayat@hotmail.com </li></ul>T H A N K Y O U

×