SlideShare a Scribd company logo
Innovations in Fresh Vegetable Supply Chains : Risk Reduction as Driver of Innovations M.G Subramanian, D.N.Suresh, Janat Shah, Uma Kausik Supply Chain Management Centre IIM Bangalore
Disclaimers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Our Approach 1:   Blend micro and macro views ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],There isn’t ONE Vegetable Supply Chain ; There are 100s needing reengg !
Producer Commission  Agent Primary wholesale trader Retailer Local consumer Itinerant traders Shipper Secondary  wholesale trader Outside consumer Cooperative/  Regulated Market I I II III IV V VI VII Fig. Market channels for vegetables in India Source: AVRDC (Sermadevi R. Subramanian, Sivam Varadarajan, and Muthiah Asokan)
Our Approach-2:  Multiflow Channels are Useful Models ,[object Object],[object Object],[object Object],[object Object]
Producers Physical Possession Ownership  Promotion Wholesalers Retailers Consumers Industrial and Household Physical Physical Possession Ownership Possession  Ownership Promotion Promotion Financing Risking Ordering Payment Financing Financing Risking Risking Ordering Ordering Payment Payment The arrows above show flows of activity in the channel (e.g: physical possession flows from producers to wholesalers to retailers to consumers). Each flow carries a cost. Some examples of costs of various flows are given below: Marketing Flow   Cost Represented Physical Possession  Storage and Delivery Cost Ownership  Inventory Carrying Cost Promotion  Personal selling, advertising ,sales promotion, publicity, public relations costs Negotiation  Time and legal costs Financing  Credit terms , terms and conditions of sale Risking  Price guarantee, warranties, insurance, repair, and  after sales service costs Ordering   Order- Processing costs Payment  Collections, bad debts cost Negotiation Negotiation Negotiation Marketing Channels,  Anne Coughlan et al
Case Study:Bangalore ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Our Approach-3 Risk is a critical factor for characterisation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
* Information was obtained through personal discussions with scientists of IARI, New Delhi. Source:  Vegetable Demand and Production in India: Long-term Perspective   Praduman Kumar, Pramod Kumar and Surabhi Mittal,    Indian Agricultural Research Institute, New Delhi.
Source:  “Vegetable Demand and Production in India: Long-term Perspective” from Praduman kumar, Pramod Kumar and Surabhi Mittal,  Indian Agricultural Research Institute, New Delhi.
Price & Wastage Flow Source :(5) From competition at home to competing abroad :World Bank H: Markups increase with risk assumed by the channel player ? Q: Is this risk/reward structure “desirable”? Perishability Source: S. Raghunath and D. Ashok; June 2004 (IIM- Bangalore) Producer / Farmer: Price Rs. 2.00; Wastage: 20% Consolidator: Price: Rs.2.20; Wastage: 8% Market Wholesaler: Price Rs. 2.50; Wastage: 5% Semi-Wholesaler: Price Rs. 3.33; Wastage: 5% Retailers: Price Rs. 8.20; Wastage: 10% Commodity- Tomato; State - Karnataka
Uncertainties compound! Physical Risks Financial risks Information risks Deming: Reducing variability is key to process control !
Some Traditional Practices in Risk Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Modern Retail Formats :Practices  embedding  Risk Management  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Optimal  Risk Mitigation  Total  Expected Cost  Investment in Mitigation  (Physical, Informational,Financial) Expected opportunity loss  because of residual risk  Optimal investment level on risk mitigation Cost
Why is that view justified? Returns to other inputs Returns to risk reduction An example is the ratio of  incremental return to incremental cost spent in cropcare - ICRIER study * (cauliflowers) Mitigation costs Reduced Risks * Impact of organised retail on the unorganised Sector: Mathew Joseph et al
Optimal  Risk Mitigation: Impact of improvement in investment cost drivers Total  Expected Cost  Investment in Mitigation  (Physical, Informational, Financial) Expected opportunity loss  because of residual risk  Optimal investment level on risk mitigation Cost
Customer Price, Risk Reduction and Farmer’s Share-  Giving it to the farmer Farmer’s share Supply Chain Costs Ph. Fi. In
Customer Price, Risk Reduction and Farmer’s Share-  Giving it to the farmer Farmer’s share ,[object Object],[object Object],[object Object],[object Object],Ph. Fi. In Ph. Fi. In
Customer Price, Risk Reduction and Farmer’s Share-  Giving it to the customer Ph. Fi. In Farmer’s share Ph. Fi. In
Reducing Risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Future work directions for IIMB ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thank You Questions?

More Related Content

What's hot

Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...
Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...
Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...
IJMER
 
Michael porters 5 force model
Michael porters 5 force modelMichael porters 5 force model
Michael porters 5 force model
Parin Sanghvi
 
IDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEW
IDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEWIDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEW
IDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEW
International Journal of Technical Research & Application
 
Creating competitive-advantage-in-retail
Creating competitive-advantage-in-retailCreating competitive-advantage-in-retail
Creating competitive-advantage-in-retail
Dr Lendy Spires
 
Guidelines on greening agri business -business models2
Guidelines on greening agri business -business models2Guidelines on greening agri business -business models2
Guidelines on greening agri business -business models2
PRIVATE CONSULTANCY FIRM
 
Distributing service
Distributing serviceDistributing service
Distributing service
Krishna Jaiswal
 
Competing retailers and inventory an empirical investigation of
Competing retailers and inventory  an empirical investigation ofCompeting retailers and inventory  an empirical investigation of
Competing retailers and inventory an empirical investigation of
Makwana Suresh
 
107supplier relationship
107supplier relationship107supplier relationship
107supplier relationship
btecexpert
 
Channelconcept
ChannelconceptChannelconcept
Channelconcept
Neeraj Goyal
 

What's hot (9)

Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...
Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...
Value Chain Bankrolling: Strategy towards enhancing growth in Agriculture sec...
 
Michael porters 5 force model
Michael porters 5 force modelMichael porters 5 force model
Michael porters 5 force model
 
IDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEW
IDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEWIDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEW
IDENTIFICATION OF SUPPLY CHAIN MANAGEMENT PROBLEMS: A REVIEW
 
Creating competitive-advantage-in-retail
Creating competitive-advantage-in-retailCreating competitive-advantage-in-retail
Creating competitive-advantage-in-retail
 
Guidelines on greening agri business -business models2
Guidelines on greening agri business -business models2Guidelines on greening agri business -business models2
Guidelines on greening agri business -business models2
 
Distributing service
Distributing serviceDistributing service
Distributing service
 
Competing retailers and inventory an empirical investigation of
Competing retailers and inventory  an empirical investigation ofCompeting retailers and inventory  an empirical investigation of
Competing retailers and inventory an empirical investigation of
 
107supplier relationship
107supplier relationship107supplier relationship
107supplier relationship
 
Channelconcept
ChannelconceptChannelconcept
Channelconcept
 

Viewers also liked

Semillas fito; growth in the spanish market
Semillas fito; growth in the spanish marketSemillas fito; growth in the spanish market
Semillas fito; growth in the spanish market
Anneliese Niebauer
 
TAPMI School of Business Jaipur
TAPMI School of Business JaipurTAPMI School of Business Jaipur
TAPMI School of Business Jaipur
TAPMISCHOOLOFBUSINESS
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
Mohammed Kurmot
 
Scm(meseor)
Scm(meseor)Scm(meseor)
Scm(meseor)
Sathasivam
 
4029 5504 02_strategy_and_performance_measure
4029 5504 02_strategy_and_performance_measure4029 5504 02_strategy_and_performance_measure
4029 5504 02_strategy_and_performance_measure
Vijayendra Gupta
 
Supply Chain Integration Strategies
Supply Chain Integration StrategiesSupply Chain Integration Strategies
Supply Chain Integration Strategies
Bidyut Bikash
 
introduction to logistic
introduction to logisticintroduction to logistic
introduction to logistic
Ritesh Jain
 
Agile supply chain
Agile supply chainAgile supply chain
Agile supply chain
Archil Nasrashvili
 
7 agile supply chain
7 agile supply chain7 agile supply chain
7 agile supply chain
valerod2
 
Supply chain drivers
Supply chain driversSupply chain drivers
Supply chain drivers
Anupam Basu
 
Supply Chain Management Coordination.
Supply Chain Management Coordination.Supply Chain Management Coordination.
Supply Chain Management Coordination.
Rajendran Ananda Krishnan
 
Introduction 2 Logistics
Introduction 2 LogisticsIntroduction 2 Logistics
Introduction 2 Logistics
Youssef Serroukh
 
Mapping supply chains
Mapping supply chainsMapping supply chains
Mapping supply chains
Arkkkky
 
Unilever Supply Chain Management
Unilever Supply Chain ManagementUnilever Supply Chain Management
Unilever Supply Chain Management
Rahul Auddya
 
Supply Chain Management, Basics
Supply Chain Management, BasicsSupply Chain Management, Basics
Supply Chain Management, Basics
Rajendran Ananda Krishnan
 
Delayed Product Differentiation
Delayed Product DifferentiationDelayed Product Differentiation
Delayed Product Differentiation
3abooodi
 
Supply Chain Integration
Supply Chain IntegrationSupply Chain Integration
Supply Chain Integration
3abooodi
 
Supply chain drivers & metrics
Supply chain drivers & metricsSupply chain drivers & metrics
Supply chain drivers & metrics
ujjmishra
 
Supply Chain Management, Designing the Supply Chain Network
Supply Chain Management, Designing the Supply Chain NetworkSupply Chain Management, Designing the Supply Chain Network
Supply Chain Management, Designing the Supply Chain Network
Rajendran Ananda Krishnan
 
Supply Chain Management
Supply Chain ManagementSupply Chain Management
Supply Chain Management
Nurhazman Abdul Aziz
 

Viewers also liked (20)

Semillas fito; growth in the spanish market
Semillas fito; growth in the spanish marketSemillas fito; growth in the spanish market
Semillas fito; growth in the spanish market
 
TAPMI School of Business Jaipur
TAPMI School of Business JaipurTAPMI School of Business Jaipur
TAPMI School of Business Jaipur
 
Supply chain management
Supply chain managementSupply chain management
Supply chain management
 
Scm(meseor)
Scm(meseor)Scm(meseor)
Scm(meseor)
 
4029 5504 02_strategy_and_performance_measure
4029 5504 02_strategy_and_performance_measure4029 5504 02_strategy_and_performance_measure
4029 5504 02_strategy_and_performance_measure
 
Supply Chain Integration Strategies
Supply Chain Integration StrategiesSupply Chain Integration Strategies
Supply Chain Integration Strategies
 
introduction to logistic
introduction to logisticintroduction to logistic
introduction to logistic
 
Agile supply chain
Agile supply chainAgile supply chain
Agile supply chain
 
7 agile supply chain
7 agile supply chain7 agile supply chain
7 agile supply chain
 
Supply chain drivers
Supply chain driversSupply chain drivers
Supply chain drivers
 
Supply Chain Management Coordination.
Supply Chain Management Coordination.Supply Chain Management Coordination.
Supply Chain Management Coordination.
 
Introduction 2 Logistics
Introduction 2 LogisticsIntroduction 2 Logistics
Introduction 2 Logistics
 
Mapping supply chains
Mapping supply chainsMapping supply chains
Mapping supply chains
 
Unilever Supply Chain Management
Unilever Supply Chain ManagementUnilever Supply Chain Management
Unilever Supply Chain Management
 
Supply Chain Management, Basics
Supply Chain Management, BasicsSupply Chain Management, Basics
Supply Chain Management, Basics
 
Delayed Product Differentiation
Delayed Product DifferentiationDelayed Product Differentiation
Delayed Product Differentiation
 
Supply Chain Integration
Supply Chain IntegrationSupply Chain Integration
Supply Chain Integration
 
Supply chain drivers & metrics
Supply chain drivers & metricsSupply chain drivers & metrics
Supply chain drivers & metrics
 
Supply Chain Management, Designing the Supply Chain Network
Supply Chain Management, Designing the Supply Chain NetworkSupply Chain Management, Designing the Supply Chain Network
Supply Chain Management, Designing the Supply Chain Network
 
Supply Chain Management
Supply Chain ManagementSupply Chain Management
Supply Chain Management
 

Similar to Innovations In Fresh Vegetable Supply Chain4 An2

Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02
Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02
Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02
Harshakumar Kugwe
 
Value chain financing
Value chain financingValue chain financing
Value chain financing
Alexander Decker
 
Bridge financing for health
Bridge financing for healthBridge financing for health
Bridge financing for health
AIDS Watch Africa
 
Bridge financing for health
Bridge financing for healthBridge financing for health
Bridge financing for health
AIDS Watch Africa
 
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...
International Food Policy Research Institute- South Asia Office
 
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder AgricultureThe Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA)
 
Webinar on 3-D Client Value Assessment
Webinar on 3-D Client Value AssessmentWebinar on 3-D Client Value Assessment
Webinar on 3-D Client Value Assessment
Impact Insurance Facility
 
Copy of 3 Last-mile distribution.pptx
Copy of 3 Last-mile distribution.pptxCopy of 3 Last-mile distribution.pptx
Copy of 3 Last-mile distribution.pptx
Simiyu Katiambo
 
Internal Assessment of Supply Chain Management
Internal Assessment of Supply Chain ManagementInternal Assessment of Supply Chain Management
Internal Assessment of Supply Chain Management
Basudev Sharma
 
Supply Chain ManagementSupply chain management is the integratio.docx
Supply Chain ManagementSupply chain management is the integratio.docxSupply Chain ManagementSupply chain management is the integratio.docx
Supply Chain ManagementSupply chain management is the integratio.docx
mattinsonjanel
 
Shaping a new CGIAR Mega Program on Livestock and Fish
Shaping a new CGIAR Mega Program on Livestock and FishShaping a new CGIAR Mega Program on Livestock and Fish
Shaping a new CGIAR Mega Program on Livestock and Fish
ILRI
 
1203064128711_Miller_Africa_VCF_Perspective.ppt
1203064128711_Miller_Africa_VCF_Perspective.ppt1203064128711_Miller_Africa_VCF_Perspective.ppt
1203064128711_Miller_Africa_VCF_Perspective.ppt
Temesgen59
 
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder AgricultureThe Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA)
 
International procurement strategies
International procurement strategiesInternational procurement strategies
International procurement strategies
Next Level Purchasing
 
Financial communication ccpr bms ppt
Financial communication ccpr bms pptFinancial communication ccpr bms ppt
Financial communication ccpr bms ppt
Mukul kale
 
Approaches to pro-poor livestock market development
Approaches to pro-poor livestock market developmentApproaches to pro-poor livestock market development
Approaches to pro-poor livestock market development
ILRI
 
Role of Merchandiser in Supply Chain Management
Role of Merchandiser in Supply Chain ManagementRole of Merchandiser in Supply Chain Management
Role of Merchandiser in Supply Chain Management
tarikul_38
 
IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...
IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...
IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...
International Food Policy Research Institute- South Asia Office
 
Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites
Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites
Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites
CombineNet, Inc.
 
Supply Chain optimization & risks factors
Supply Chain optimization & risks factorsSupply Chain optimization & risks factors
Supply Chain optimization & risks factors
Alok Anand
 

Similar to Innovations In Fresh Vegetable Supply Chain4 An2 (20)

Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02
Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02
Innovationsinfreshvegetablesupplychain4an2 090629044542-phpapp02
 
Value chain financing
Value chain financingValue chain financing
Value chain financing
 
Bridge financing for health
Bridge financing for healthBridge financing for health
Bridge financing for health
 
Bridge financing for health
Bridge financing for healthBridge financing for health
Bridge financing for health
 
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opport...
 
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder AgricultureThe Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
 
Webinar on 3-D Client Value Assessment
Webinar on 3-D Client Value AssessmentWebinar on 3-D Client Value Assessment
Webinar on 3-D Client Value Assessment
 
Copy of 3 Last-mile distribution.pptx
Copy of 3 Last-mile distribution.pptxCopy of 3 Last-mile distribution.pptx
Copy of 3 Last-mile distribution.pptx
 
Internal Assessment of Supply Chain Management
Internal Assessment of Supply Chain ManagementInternal Assessment of Supply Chain Management
Internal Assessment of Supply Chain Management
 
Supply Chain ManagementSupply chain management is the integratio.docx
Supply Chain ManagementSupply chain management is the integratio.docxSupply Chain ManagementSupply chain management is the integratio.docx
Supply Chain ManagementSupply chain management is the integratio.docx
 
Shaping a new CGIAR Mega Program on Livestock and Fish
Shaping a new CGIAR Mega Program on Livestock and FishShaping a new CGIAR Mega Program on Livestock and Fish
Shaping a new CGIAR Mega Program on Livestock and Fish
 
1203064128711_Miller_Africa_VCF_Perspective.ppt
1203064128711_Miller_Africa_VCF_Perspective.ppt1203064128711_Miller_Africa_VCF_Perspective.ppt
1203064128711_Miller_Africa_VCF_Perspective.ppt
 
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder AgricultureThe Role of Technical Assistance in Lending Products for Smallholder Agriculture
The Role of Technical Assistance in Lending Products for Smallholder Agriculture
 
International procurement strategies
International procurement strategiesInternational procurement strategies
International procurement strategies
 
Financial communication ccpr bms ppt
Financial communication ccpr bms pptFinancial communication ccpr bms ppt
Financial communication ccpr bms ppt
 
Approaches to pro-poor livestock market development
Approaches to pro-poor livestock market developmentApproaches to pro-poor livestock market development
Approaches to pro-poor livestock market development
 
Role of Merchandiser in Supply Chain Management
Role of Merchandiser in Supply Chain ManagementRole of Merchandiser in Supply Chain Management
Role of Merchandiser in Supply Chain Management
 
IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...
IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...
IFPRI - NAES Conference on Sustainable & Resilient Agriculture - Anjani Kumar...
 
Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites
Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites
Supply Chain Spends: Advancing Sourcing Beyond Procurement Suites
 
Supply Chain optimization & risks factors
Supply Chain optimization & risks factorsSupply Chain optimization & risks factors
Supply Chain optimization & risks factors
 

More from venkatesan g

Pakistan Mango
Pakistan MangoPakistan Mango
Pakistan Mango
venkatesan g
 
Paper Presentation Mohan Kumar
Paper Presentation Mohan KumarPaper Presentation Mohan Kumar
Paper Presentation Mohan Kumar
venkatesan g
 
Presentation 17.09
Presentation 17.09Presentation 17.09
Presentation 17.09
venkatesan g
 
Isabm Pres
Isabm PresIsabm Pres
Isabm Pres
venkatesan g
 
Ifpri Ashok Gulati
Ifpri Ashok GulatiIfpri Ashok Gulati
Ifpri Ashok Gulati
venkatesan g
 
Floribusiness Uas08
Floribusiness Uas08Floribusiness Uas08
Floribusiness Uas08
venkatesan g
 
Cf Presentation 25 Sep 08
Cf Presentation   25 Sep 08Cf Presentation   25 Sep 08
Cf Presentation 25 Sep 08
venkatesan g
 
Dr Bhave
Dr BhaveDr Bhave
Dr Bhave
venkatesan g
 
Fanancial Inclusion Agriculture
Fanancial Inclusion AgricultureFanancial Inclusion Agriculture
Fanancial Inclusion Agriculture
venkatesan g
 
Bangalore Presentation Landes Burfisher Paper F N1
Bangalore Presentation    Landes  Burfisher Paper  F N1Bangalore Presentation    Landes  Burfisher Paper  F N1
Bangalore Presentation Landes Burfisher Paper F N1
venkatesan g
 
Yes Bank 26.09.08
Yes Bank 26.09.08Yes Bank 26.09.08
Yes Bank 26.09.08
venkatesan g
 
Bangalore Presentation Landes Burfisher Paper F N1
Bangalore Presentation    Landes  Burfisher Paper  F N1Bangalore Presentation    Landes  Burfisher Paper  F N1
Bangalore Presentation Landes Burfisher Paper F N1
venkatesan g
 
Cf Presentation 25 Sep 08
Cf Presentation   25 Sep 08Cf Presentation   25 Sep 08
Cf Presentation 25 Sep 08
venkatesan g
 
Chillipowder Business Plan
Chillipowder Business PlanChillipowder Business Plan
Chillipowder Business Plan
venkatesan g
 

More from venkatesan g (14)

Pakistan Mango
Pakistan MangoPakistan Mango
Pakistan Mango
 
Paper Presentation Mohan Kumar
Paper Presentation Mohan KumarPaper Presentation Mohan Kumar
Paper Presentation Mohan Kumar
 
Presentation 17.09
Presentation 17.09Presentation 17.09
Presentation 17.09
 
Isabm Pres
Isabm PresIsabm Pres
Isabm Pres
 
Ifpri Ashok Gulati
Ifpri Ashok GulatiIfpri Ashok Gulati
Ifpri Ashok Gulati
 
Floribusiness Uas08
Floribusiness Uas08Floribusiness Uas08
Floribusiness Uas08
 
Cf Presentation 25 Sep 08
Cf Presentation   25 Sep 08Cf Presentation   25 Sep 08
Cf Presentation 25 Sep 08
 
Dr Bhave
Dr BhaveDr Bhave
Dr Bhave
 
Fanancial Inclusion Agriculture
Fanancial Inclusion AgricultureFanancial Inclusion Agriculture
Fanancial Inclusion Agriculture
 
Bangalore Presentation Landes Burfisher Paper F N1
Bangalore Presentation    Landes  Burfisher Paper  F N1Bangalore Presentation    Landes  Burfisher Paper  F N1
Bangalore Presentation Landes Burfisher Paper F N1
 
Yes Bank 26.09.08
Yes Bank 26.09.08Yes Bank 26.09.08
Yes Bank 26.09.08
 
Bangalore Presentation Landes Burfisher Paper F N1
Bangalore Presentation    Landes  Burfisher Paper  F N1Bangalore Presentation    Landes  Burfisher Paper  F N1
Bangalore Presentation Landes Burfisher Paper F N1
 
Cf Presentation 25 Sep 08
Cf Presentation   25 Sep 08Cf Presentation   25 Sep 08
Cf Presentation 25 Sep 08
 
Chillipowder Business Plan
Chillipowder Business PlanChillipowder Business Plan
Chillipowder Business Plan
 

Recently uploaded

How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
SalesTown
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
SabaaSudozai
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Lacey Max
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
Top Forex Brokers Review
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
Any kyc Account
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
Corey Perlman, Social Media Speaker and Consultant
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Kalyan Satta Matka Guessing Matka Result Main Bazar chart
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
Adnet Communications
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
my Pandit
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
CA Dr. Prithvi Ranjan Parhi
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
JoeYangGreatMachiner
 
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
Stephen Cashman
 
Digital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on SustainabilityDigital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on Sustainability
sssourabhsharma
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
CLIVE MINCHIN
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
➑➌➋➑➒➎➑➑➊➍
 
GKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt PresentationGKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt Presentation
GraceKohler1
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Operational Excellence Consulting
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 

Recently uploaded (20)

How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
 
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
 
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoAuthentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
 
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
The Heart of Leadership_ How Emotional Intelligence Drives Business Success B...
 
Digital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on SustainabilityDigital Marketing with a Focus on Sustainability
Digital Marketing with a Focus on Sustainability
 
Best practices for project execution and delivery
Best practices for project execution and deliveryBest practices for project execution and delivery
Best practices for project execution and delivery
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
 
GKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt PresentationGKohler - Retail Scavenger Hunt Presentation
GKohler - Retail Scavenger Hunt Presentation
 
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital ExcellenceDigital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 

Innovations In Fresh Vegetable Supply Chain4 An2

  • 1. Innovations in Fresh Vegetable Supply Chains : Risk Reduction as Driver of Innovations M.G Subramanian, D.N.Suresh, Janat Shah, Uma Kausik Supply Chain Management Centre IIM Bangalore
  • 2.
  • 3.
  • 4. Producer Commission Agent Primary wholesale trader Retailer Local consumer Itinerant traders Shipper Secondary wholesale trader Outside consumer Cooperative/ Regulated Market I I II III IV V VI VII Fig. Market channels for vegetables in India Source: AVRDC (Sermadevi R. Subramanian, Sivam Varadarajan, and Muthiah Asokan)
  • 5.
  • 6. Producers Physical Possession Ownership Promotion Wholesalers Retailers Consumers Industrial and Household Physical Physical Possession Ownership Possession Ownership Promotion Promotion Financing Risking Ordering Payment Financing Financing Risking Risking Ordering Ordering Payment Payment The arrows above show flows of activity in the channel (e.g: physical possession flows from producers to wholesalers to retailers to consumers). Each flow carries a cost. Some examples of costs of various flows are given below: Marketing Flow Cost Represented Physical Possession Storage and Delivery Cost Ownership Inventory Carrying Cost Promotion Personal selling, advertising ,sales promotion, publicity, public relations costs Negotiation Time and legal costs Financing Credit terms , terms and conditions of sale Risking Price guarantee, warranties, insurance, repair, and after sales service costs Ordering Order- Processing costs Payment Collections, bad debts cost Negotiation Negotiation Negotiation Marketing Channels, Anne Coughlan et al
  • 7.
  • 8.
  • 9. * Information was obtained through personal discussions with scientists of IARI, New Delhi. Source: Vegetable Demand and Production in India: Long-term Perspective Praduman Kumar, Pramod Kumar and Surabhi Mittal, Indian Agricultural Research Institute, New Delhi.
  • 10. Source: “Vegetable Demand and Production in India: Long-term Perspective” from Praduman kumar, Pramod Kumar and Surabhi Mittal, Indian Agricultural Research Institute, New Delhi.
  • 11. Price & Wastage Flow Source :(5) From competition at home to competing abroad :World Bank H: Markups increase with risk assumed by the channel player ? Q: Is this risk/reward structure “desirable”? Perishability Source: S. Raghunath and D. Ashok; June 2004 (IIM- Bangalore) Producer / Farmer: Price Rs. 2.00; Wastage: 20% Consolidator: Price: Rs.2.20; Wastage: 8% Market Wholesaler: Price Rs. 2.50; Wastage: 5% Semi-Wholesaler: Price Rs. 3.33; Wastage: 5% Retailers: Price Rs. 8.20; Wastage: 10% Commodity- Tomato; State - Karnataka
  • 12. Uncertainties compound! Physical Risks Financial risks Information risks Deming: Reducing variability is key to process control !
  • 13.
  • 14.
  • 15. Optimal Risk Mitigation Total Expected Cost Investment in Mitigation (Physical, Informational,Financial) Expected opportunity loss because of residual risk Optimal investment level on risk mitigation Cost
  • 16. Why is that view justified? Returns to other inputs Returns to risk reduction An example is the ratio of incremental return to incremental cost spent in cropcare - ICRIER study * (cauliflowers) Mitigation costs Reduced Risks * Impact of organised retail on the unorganised Sector: Mathew Joseph et al
  • 17. Optimal Risk Mitigation: Impact of improvement in investment cost drivers Total Expected Cost Investment in Mitigation (Physical, Informational, Financial) Expected opportunity loss because of residual risk Optimal investment level on risk mitigation Cost
  • 18. Customer Price, Risk Reduction and Farmer’s Share- Giving it to the farmer Farmer’s share Supply Chain Costs Ph. Fi. In
  • 19.
  • 20. Customer Price, Risk Reduction and Farmer’s Share- Giving it to the customer Ph. Fi. In Farmer’s share Ph. Fi. In
  • 21.
  • 22.