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Fundamentals of AB,P,F & E
Management
Arun Bhattacharyya
Faculty Member
IIPM
“If you fail to plan, you are planning to fail!”
…….Benjamin Franklin
Opening examples (1/2)
Why is Starbucks so famous?
“Coffee Experience” by their Baristas
Opening examples (2/2)
TRRINGO is India’s foremost tractor &
farm equipment rental service. It is a
one-stop shop for all farm
mechanization needs
Driverless Tractor
What’s Important in AB, P, F, & E Mgmt.
•Business Model
•Resources (raw material, people, etc.)
•Capabilities
•Measurement
Conceptualizing Agri/ Food-business (1/3)
Conceptualizing Agri/Food-business (2/3)
Agri/ Food Business involves
• Production Distribution
Consumption of food,
clothing, and even shelter
• Economic activities
o input supply industries,
o agricultural production,
o post-harvest,
o value-added activities
(commodity processing,
food manufacturing, &
food distribution)
Conceptualizing Agri/ Food-business (3/3)
• Inputs—(e.g., seeds,
fertilizer, financing,
equipment)-that are used in
production
• Intermediate activities— (e.g.,
grading, storage, processing,
packaging, distribution, pricing,
marketing)
• Final consumption
activities—(e.g., restaurants,
groceries, cloud kitchens)
Locating the Three PGDM Programs
Farmland & Farmer
• Agriculture & Horticulture
• Plantation (Tea, Coffee,
Rubber, Spices, etc.)
Food Processing
• Production & Quality Control
• Value-addition (Form,
Packaging, etc.)
Agri-Inputs
(Fertilizers, Seeds, Feedstuffs,
Farm Machineries, Others)
Consumer (Value-added
Products)
• Local & National
• International
Consumer (Raw Produce)
• Local & National
• International
Primary Processing & Inbound Logistics
(Intermediaries)
Outbound Logistics
(Intermediaries &
Exports)
Outbound Logistics
(Intermediaries)
R
E
T
A
I
L
Blue line Indicates PGDM-ABPM
Red line Indicates PGDM-FPBM
Violet line indicates PGDM-AEBM
Business with wheat?
ITC wants to get an entry into the staples market.
How should they go about it?
Nurture through Nature
We understand how important it
is for you to provide the best for
your family. And it has been our
constant endeavor to help you do
just that. That's why we make
sure our product ingredients are
carefully nurtured and processed
through our 4-step advantage
process.
Agri/ Food value chains (1/3)
Agriculture/ Food value chains (2/3)
Crofarm (F2B- Farm to Business)
• over 10,000 farmers in its network
• partnered with Reliance Retail,
Grofers, Big Basket, Jubilant
Foodworks, Big Bazar and Metro Foods.
• generates revenue through
commission, (5% for less perishables
like potato & onions; 15% for green
vegetables; 20-25% for fruits and
exotics.)
• procures products with longer shelf life
from national sourcing zones; other
products from regional sourcing zones.
Ninjacart (B2B agri-market platform)
• built a cost-efficient, reliable and
scalable supply chain to handle
300+ tonnes a day.
• it moves 60+ tonnes of produce a
day from farm to store in less than
14 hours at a cost lower than
traditional supply chains.
• 2,000 farmers sell more than 80
vegetables and fruits every day to
800+ retailers & restaurants in
Bengaluru
• claims to have less than 4% wastage
in the entire chain.
Agriculture/ Food value chains (3/3)
Decision-making in the Agri/Food Business
Consumers (B)
• C Pakoda
• O Bhajji
• Aam Ras
• O/M/C/T
Farmer(s) AP
• Onion (O)
Farmer(s) AP
• Mango (M)
Farmer(s) AP
• Chilli (C)
Farmer(s) AP
• Tomato (T)
Pesticides
Fertilizers
Seeds/ Saplings
Farm M/c
Animal Feed
Cloud Kitchen (B)
• O/M/C/T
Entrepreneur
• FPO/ FPC
• Others
Intermediaries
• Comm. Agent
• W/S
• Dealers
• Retailers
Decision Parameters
• What?- Quality
• How much?- Order
• Where?- Inventory
• When?- Shelf life
• Who else?- Competition
B2B Customer (B)
• Value-added Products • O/M/C/T
• T sachets
• T sachets
• T sachets
Processor
• T Ketchup
Delivering
Value
• Packaging
• 1/2/3/4/5PL
What’s Important (Comparative)
• Reliability (Efficiency)
• Responsiveness (Effectiveness)
• Assurance (Credibility)
• Relationship (Trust)
What can you do with spices!!
Pure Spices
Chilli
Turmeric
Coriander
Cumin
Pepper
Tamarind
Asafoetida
Bay Leaf
Clove
Cardamom
Cinnamon
Tulsi Leaf
Others
Blended Spices
Garam Masala
Non-Veg Masala
Kitchen King and Sabzi Masala
Chole and Channa Masala
Chat Masala
Sambhar and Rasham Masala
Paneer and Curry Masala
Pav Bhaji Masala
Jaljeera Masala
Others
Breakup by Application
Veg Curries
Meat and Poultry Products
Snacks and Convenience Foods
Soups, Sauces and Dressings
Bakery and Confectionary
Frozen Foods
Beverages
Others
Breakup by Form
Packets
Sprinkler
Crusher
Breakup by Region
South India
North India
West & Central India
East and North-East India
Some more examples (1/2)
10 minutes delivery as quick commerce
Some more examples (2/2)
10 minutes delivery
Putting it all together
Thank you for
Participating

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Session-FOM-ABPM.pptx

  • 1. Fundamentals of AB,P,F & E Management Arun Bhattacharyya Faculty Member IIPM “If you fail to plan, you are planning to fail!” …….Benjamin Franklin
  • 2. Opening examples (1/2) Why is Starbucks so famous? “Coffee Experience” by their Baristas
  • 3. Opening examples (2/2) TRRINGO is India’s foremost tractor & farm equipment rental service. It is a one-stop shop for all farm mechanization needs Driverless Tractor What’s Important in AB, P, F, & E Mgmt. •Business Model •Resources (raw material, people, etc.) •Capabilities •Measurement
  • 5. Conceptualizing Agri/Food-business (2/3) Agri/ Food Business involves • Production Distribution Consumption of food, clothing, and even shelter • Economic activities o input supply industries, o agricultural production, o post-harvest, o value-added activities (commodity processing, food manufacturing, & food distribution)
  • 6. Conceptualizing Agri/ Food-business (3/3) • Inputs—(e.g., seeds, fertilizer, financing, equipment)-that are used in production • Intermediate activities— (e.g., grading, storage, processing, packaging, distribution, pricing, marketing) • Final consumption activities—(e.g., restaurants, groceries, cloud kitchens)
  • 7. Locating the Three PGDM Programs Farmland & Farmer • Agriculture & Horticulture • Plantation (Tea, Coffee, Rubber, Spices, etc.) Food Processing • Production & Quality Control • Value-addition (Form, Packaging, etc.) Agri-Inputs (Fertilizers, Seeds, Feedstuffs, Farm Machineries, Others) Consumer (Value-added Products) • Local & National • International Consumer (Raw Produce) • Local & National • International Primary Processing & Inbound Logistics (Intermediaries) Outbound Logistics (Intermediaries & Exports) Outbound Logistics (Intermediaries) R E T A I L Blue line Indicates PGDM-ABPM Red line Indicates PGDM-FPBM Violet line indicates PGDM-AEBM
  • 8. Business with wheat? ITC wants to get an entry into the staples market. How should they go about it? Nurture through Nature We understand how important it is for you to provide the best for your family. And it has been our constant endeavor to help you do just that. That's why we make sure our product ingredients are carefully nurtured and processed through our 4-step advantage process.
  • 9. Agri/ Food value chains (1/3)
  • 10. Agriculture/ Food value chains (2/3) Crofarm (F2B- Farm to Business) • over 10,000 farmers in its network • partnered with Reliance Retail, Grofers, Big Basket, Jubilant Foodworks, Big Bazar and Metro Foods. • generates revenue through commission, (5% for less perishables like potato & onions; 15% for green vegetables; 20-25% for fruits and exotics.) • procures products with longer shelf life from national sourcing zones; other products from regional sourcing zones. Ninjacart (B2B agri-market platform) • built a cost-efficient, reliable and scalable supply chain to handle 300+ tonnes a day. • it moves 60+ tonnes of produce a day from farm to store in less than 14 hours at a cost lower than traditional supply chains. • 2,000 farmers sell more than 80 vegetables and fruits every day to 800+ retailers & restaurants in Bengaluru • claims to have less than 4% wastage in the entire chain.
  • 11. Agriculture/ Food value chains (3/3)
  • 12. Decision-making in the Agri/Food Business Consumers (B) • C Pakoda • O Bhajji • Aam Ras • O/M/C/T Farmer(s) AP • Onion (O) Farmer(s) AP • Mango (M) Farmer(s) AP • Chilli (C) Farmer(s) AP • Tomato (T) Pesticides Fertilizers Seeds/ Saplings Farm M/c Animal Feed Cloud Kitchen (B) • O/M/C/T Entrepreneur • FPO/ FPC • Others Intermediaries • Comm. Agent • W/S • Dealers • Retailers Decision Parameters • What?- Quality • How much?- Order • Where?- Inventory • When?- Shelf life • Who else?- Competition B2B Customer (B) • Value-added Products • O/M/C/T • T sachets • T sachets • T sachets Processor • T Ketchup Delivering Value • Packaging • 1/2/3/4/5PL What’s Important (Comparative) • Reliability (Efficiency) • Responsiveness (Effectiveness) • Assurance (Credibility) • Relationship (Trust)
  • 13. What can you do with spices!! Pure Spices Chilli Turmeric Coriander Cumin Pepper Tamarind Asafoetida Bay Leaf Clove Cardamom Cinnamon Tulsi Leaf Others Blended Spices Garam Masala Non-Veg Masala Kitchen King and Sabzi Masala Chole and Channa Masala Chat Masala Sambhar and Rasham Masala Paneer and Curry Masala Pav Bhaji Masala Jaljeera Masala Others Breakup by Application Veg Curries Meat and Poultry Products Snacks and Convenience Foods Soups, Sauces and Dressings Bakery and Confectionary Frozen Foods Beverages Others Breakup by Form Packets Sprinkler Crusher Breakup by Region South India North India West & Central India East and North-East India
  • 14. Some more examples (1/2) 10 minutes delivery as quick commerce
  • 15. Some more examples (2/2) 10 minutes delivery
  • 16. Putting it all together