Contains information about dabur sourcing saffron from kashmir and how it is cutting cost through e-sourcing and how yhis is helping both dabur & farmers in kashmir

1. Dabur sourcing of Kashmiri Saffron e - Sourcing , e - Procurement and Reverse Auctioning Submitted To Prof. Maninder Singh

2. Presentation Insight History of the company Range of products Products with saffron Saffron Scenario of production World India Reverse Auctioning e – Sourcing Benefits to Dabur Benefits to Farmers

3. History 1884 - Dabur came into being 1936 - became a full-fledged company 1986 - Public Limited company 1996 - Created 3 separate divisions Health Care Products Family Products Division DaburAyurvedicSpecialities Ltd.

4. Dabur Range of Products

5. Dabur Products with Saffron Dabur Vatika Saffron Glow Soap Dabur Shilajit Dabur Drakshavaleha

6. Saffron The most precious and most expensive spice in the world. The Saffron filaments, or threads, are actually the dried stigmas of the saffron flower, "Crocus SativusLinneaus".

7. Varieties of Saffron Kashmiri Saffronis considered to be the world's best saffron for its distinctive, long and silky threads. The dark red thread of the saffron has an extraordinary aroma, powerful coloring and flavoring properties. Iranian Saffron Iran is the single largest producer of saffron, which is called the Iranian or Persian Saffron. Iranian saffron is known for its exquisite, delectable aroma and high coloring capabilities. Spanish Saffron Not as strong as Kashmiri saffron also has its own unique aroma, flavor and coloring capabilities. Kashmiri saffron is awfully tough to obtain, which makes it the most prized saffron amongst all other varieties in the world.

8. Why is saffron expensive? Each flower contains only three stigmas. These threads must be picked from each flower by hand, and more than 75,000 of these flowers are needed to produce just one pound of Saffron filaments, making it the world’s most precious spice. But, because of saffron's strong coloring power and intense flavor, it can be used sparingly. Saffron is used both for its bright orange-yellow color and for its strong, intense flavor and aroma.

9. Saffron World Scenario

10. Indian Scenario Srinagar Budgam Pulwana Doda

11. Reverse Auctioning , e - Sourcing and e - Procurement

15. Better and easy communication with suppliers

17. Prospects for Dabur Better prices for saffron Elimination of search and negotiation costs Best quality raw materials from global suppliers in a transparent manner Minimization of supply risks by increasing the vendor base Elimination on the middleman Better social image It is able to beat inflation by procuring inputs needed in the next four months to two years at a time.

18. First Phase Challenges faced by Dabur Lack of an established, standardized and documented sourcing process. How to enable its suppliers both in rural and urban parts of India to participate in a transparent, dynamic and interactive negotiation process. lack of technological advancements Internet Connectivity very little computer literacy Manage the diverse set of suppliers spread across the globe

19. First Phase - Ariba Managed Markets and Ariba On-Demand Sourcing Basic Ariba team assisted with data collection in category-specific data collection templates, supplier research, data analysis. Translated into a lotting strategy based on suppliers’ capabilities, manufacturing locations, and Dabur’s business needs and other strategic sourcing decision-making criteria, and building and publishing a category-specific total-cost RFQ to the approved potential suppliers. Ariba also assisted Dabur in the initial managed markets by conducting supplier management post-RFQ publication final price negotiations and then awarding the business to the successful suppliers. Based on the multiple advantages of the initial managed markets, Dabur ramped up its spend management journey with the implementation of Ariba On-Demand Sourcing Basic technology along with full-time Ariba Consulting Services. This further helped Dabur’s buyers to address both their strategic and indirect expenses, which included maize derivatives, sugar, logistics, and chemicals to name a few. This first phase of spend management resulted in cost reduction, transparency and streamlining of the sourcing process.

20. Saffron First Phase Traditional Approach: Source saffron from several suppliers based in India’s northern-most state of Jammu & Kashmir. The market was a virtual oligopoly and every year suppliers would quote equal prices with Dabur allocating equal quantities to each of them. Ariba Sourcing Basic Helped to bring visibility along with cost reduction, whereby the suppliers and Dabur could see the best quoted prices for the commodity. The result was transparency, meritocracy and enhanced efficiency in the system. Since the rollout in December of 2002, Dabur has conducted 520 sourcing projects via Ariba Sourcing Basic with average savings of 10 percent across various categories. Dabur was able to identify a better supplier base in China, South East Asia and Eastern European countries for various categories such as honey, air fresheners, juices, and packing materials to name just a few through Ariba’s expertise in low-cost country sourcing. Ariba has also helped Dabur to avoid onshore inflation while expanding its supply bases and reducing costs.

21. Second Phase - Ariba On-Demand Sourcing Professional (Category Management) Second Phase Focus on category-specific process standardization, Visibility into its expenditures, Risk monitoring and mitigation, Knowledge management and Informed decision making on both budgets and pricing. Ariba On-Demand Sourcing Professional in August of 2006. Enhanced collaboration across Departments internally Amongst suppliers. Decision-making, Organizational buy-in, Sourcing visibility, Efficiency, Process Standardization, Knowledge Capturing and Compliance

23. Prospects for farmers Technically equipped to gain better value out of the saffron cycle Better yield Quality Quantity Elimination of the middleman Better prices for the saffron through negotiations International market awareness and presence Better and easy communication with company