Innovations In Agri Supply Chain - The efarm Model
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Transcript of Innovations In Agri Supply Chain - The efarm Model
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Venkata Subramanian , Founder & MD
eFarmEnabling FArmers to Reach Markets
Innovations in Agri Supply Chain The eFarm Model
Presented at :Agri Business Forum , Krishi 2011 , Nasik
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Introductions
Venkata Subramanian• Founder & Managing Director, Matchbox Solutions
& eFarm, Chennai
Brief profile :MS (Computer Science), 2003,University at Albany, NY ,
B.Arch , IIT Kharagpur ,1995 , India
12 years of experience in IT industry in both technology & commercial roles (7+ years in US)
Head of key outsourcing & consulting accounts in Insurance, Capital Markets & Banking
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Currently Better known as ….
Hi-Tech Sabjeewallahs ;-)
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PROBLEM STATEMENTWHY IS THERE A CRISIS IN INDIAN AGRICULTURE ?
Only a crystal clear question yields a transparent answer
– Zen saying
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Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition
Wholesalers to Retailers
Terminal markets to neighborhood wholesalers
Regional mandi to Terminal markets near
large cities
Harvesting of Vegetables
A local mandi auctioning
Local to Regional mandis for Auction
• Unorganized , unregulated , unprofessional & unprofitable•A Middlemen’ dominated market•Adhoc /Arbitrary Decisions on quality & price
1
2
3
4
5
6
Retailers to Dining Table
7
Loss in transit 40%
Price hike
End to end
> 400%
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Reality Check•Farmers cannot do “everything”. They need professional help and organizational support
•Farming needs to become self sustaining and HENCE a business activity•High uncertainty and risks = Very low investor interest•Years of neglect & low esteem = educated youth avoid an agricareer =Labour problems
Need role models and pioneers to build the road to recovery
Pain areas | The Farmer’s ‘REAL’ crisis
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Pain areas | Marketing -The missing link ?
Reality Check
No proper customer demand data
India’s agribiz is ‘supply driven’ rather than ‘market driven’
Other industries have differentiated
production from marketing/sales
Agriculture – Farmer handles both roles
Brands have value !! Indian products
though have wider varity and better
taste have not established a stable
brand
The missing FIFTH ‘P’ of marketing in agri context - PERISHABILITY !!
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Pain Areas | Customer Spectrum Huge domestic demand, Escalating prices & Unmet needs
Low Income Group
• > 40% in volume
• Buy from neighborhood markets (evening)
• Pay more for less quality
Middle Income Group
• ~ 20% in volume
• Buy from street vendors
• Price + Quality conscious
High Income Group
• ~5% in volume
• Buy from retail chains
• Quality & variety conscious
Hotels & caterers
• ~25% of volume
• Buy from wholesale mandi
Food & Drink processors
• ~5% of volume
• Product specific buyer
• Large volume + fixed price range
Export
• ~1% of volume
• Best quality / specific products only
Organised retailers are crowded in this spaceCompetition high
Efarm targets entire B2B segment and currently untapped areas
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Reality Check• No accurate , dynamic data on supply • No market research on customer demand• No data = Wild guesses ?
Lack of Data| No visibility to supply or demand
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THE SOLUTION
"We can't solve problems by using the same kind of thinking we used when we created them."
Albert Einstein
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“Desi” Problems need ‘Jugaadu’ solutions
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Key Innovations
1) Weighing machine = standardise agri business transactions !
Bundles, baskets , bags Kilograms , Counts
2) Simple grading = right quality to right customer!!
Mixed grades S / M / L (Or) excellent / OK /bad
3) Simple technology = widest usage !!!
PCs, Websites Mobile phones , Voice, SMS
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Value proposition | Connecting the Dots
Farmers
Rural Produce
Collection Centres
Quality
Inspection/ Grading
Cleaning / Packing
Routing
Long haul
Transportation
Urban area
Distribution centre
Small retailersLocal vendors
Food Processing
units
Exports
Bulk buyers
(Hotels / Caterers /
Retailers)
Compost/Manure
from waste
eFarm Common Services
Planning &
CoordinationResearch
Call centre /
CommunicationTechnology
Training &
Support
Local
Distribution
Every stakeholder is alternately a buyer or seller of agro goods, linked together by a common system. Thus :
Develop Online supply chain Technology backbone with offline distribution mechanisms
Create a network of farmers, intermediaries, logistics providers, distributors and retailers
Provide common support services like marketing , training , technology and agri business consulting
‘Organize’ the ‘un-organized’ rural to urban supply chain
Manage the network to ensure sustainability across the chain
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Rural Collection Centres
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Collection centres
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Chennai Distribution Centre
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Distribution centre
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Kisan To Jawan : Retail Outlet For Indian Army
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Value addition Cut
vegetables
Peeled
onions
and garlic
Agri waste
collection
and
composting
Value added lProcesing team at our Mylapore centre
Natural
Ripening
Of fruits
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Training / Workshop
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Enabling MORE farmers Reach WIDER Markets..
In Seconds
eFarmDirect
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Data Collection
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eFarmDirect
Buyers
Transport
Labour
Farmer
Suppliers
Exporters Hotels SubjiwallahsRetailers Exporters
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Live Demo
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Search Results
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Farmer Details
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Call Centre / BPO
• Fully Operated By Differently Abled Individuals
• Demo Over LIVE webcam
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Thank You
[email protected] 61354
www.efarm.inwww.efarmdirect.com
Linkedin : AgriIndiaTwitter :venky_efarm