Itc e Choupal Ppt Final 111114132618 Phpapp01
Transcript of Itc e Choupal Ppt Final 111114132618 Phpapp01
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ByPriyankka Chaurasia
IT, UIT-RGPV
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Agenda
Company Logo
ITC e-Choupal : An Introduction,
Stake holder Analysis1
Comparison of status of Supply Chainbefore and after ITC e-Choupal2
Critical Analysis, and Comparison
with HKB3
Future Scope4
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ITC e-Choupal : An Introduction
Company Logo
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ITC :An Overview Incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company
Company rechristened 'ITC Limited‘ in 1974
One of the 8 Indian Companies to feature in ‘Forbes A-list’ for 2004
Only Indian FMCG Company to feature in Forbes 2000 List
Among top in : Sustained value creation (BT-Stern Stewart survey)
Operating profits
Cash Profits
Ranks No. 4 among Indian listed Private Sector Companies by market cap. (@ April
09)
No. 1 in FMCG Sector
Rated as one of India’s Most Respected Companies (IMRB-Businessworld Survey
2006)
Diversified conglomerate with interests ranging from Tobacco to Hospitality
Company Logo
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ITC’s Agri Commodity Divison
Farm linkages in 14 states covering Soya, Wheat, Marine products,Coffee etc. Focus on value added agri commodities
Unique CRM programme in commodity exports
Leveraging IT for the transformational ‘e-Choupal’ initiative
Rural India’s largest Internet-based intervention
Over 40,000 villages linked through 6500 e-Choupals
servicing over 4 million farmers
Distinctive sourcing capability for ITC’s Foods business
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Low Risk Appetite
Weak Market
Orientation
Low InvestmentLow Margins
Low ProductivityLow Value Addition
Caught in a vicious
cycle ofunderdevelopment
The predicament of Indian Farmers
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ITC e-Choupal Started in the year 2000 Target Area so far 38,000 villages, 6500 kiosks, 9 states Wholly owned by ITC
Why it become a success ? Only initiative to attempt to combine Services and an
Effective Business Model successfully
Designed to address the issues such as:
1. Fragmented farms2. Weak institutions3. Involvement of intermediaries4. Information Asymmetry
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ITC’s Supply chain of Soya bean before e-ChoupalInitiative
Company Logo
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Company Logo
Farmer
Agri-InputCompanies
Dealer/Stockiest
Retailer
Agril University,Met Dept,
Insurance Co.
VLW (of Dept of
Agriculture)
Money
Lender
Pakka Adtiya
(Registered Dealer)
KacchaAdtiya
(Un-Registered Dealer)
Trader
Broker
P r o c e s s o r
ITC-IBD
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t
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upp y c a n post re-eng neer ng
Pricing
Previous day’s closing price used as benchmark price fornext day
Mandi prices communicated to sanchalak through e-Choupalportal
Sanchalak inspects the sample, assesses quality and givesfarmer a conditional quote and a note (name/village/qualitytests/approx. quantity/conditional price), if farmer decides tosell to ITC
Company Logo
Pricing InboundLogistics
InspectionGrading
WeighingandPayment
HubLogistics
Technologicalsupport
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Inbound Logistics Farmer proceeds to the nearest ITC procurement hub with
the note
Some procurement hubs are ITC factories, others are purely
warehouse operations ITC’s aim is to have a processing centre within 30-40 km
radius of its farmers
Company Logo
Pricing InboundLogistics
InspectionGrading
WeighingandPayment
HubLogistics
Technologicalsupport
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Inspection and Grading At the ITC procurement hub, laboratory tests are conducted
on a sample of farmer’s produce
To change farmer’s attitude and appreciating produce
quality, ITC is developing lab tests to reward farmers withreward points for better quality supply
Company Logo
Pricing InboundLogistics
Inspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Inspection and Grading At the ITC procurement hub, laboratory tests are conducted
on a sample of farmer’s produce
To change farmer’s attitude and appreciating produce
quality, ITC is developing lab tests to reward farmers withreward points for better quality supply
Company Logo
Pricing InboundLogistics
Inspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Weighing and Payment Farmer’s produce is weighed on electronic weighbridge
He is then given full cash payment
Freight expenses are reimbursed
Appropriate documentation at each stage and farmer isgiven a copy of that
Samyojaks handle cash operations
Company Logo
Pricing InboundLogistics
Inspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Hub Logistics Farmer transports his produce to the nearest processing
centre or storage hub
ITC incurs the transportation cost
The farmer bears the risk of transportation until produce isdelivered and the sale is completed
Company Logo
Pricing InboundLogistics
Inspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Technological support
Nodal platform catering to commodity blending, agriculturaltrading, e-choupal &rural distribution
24,000 personalized business function points
110,000+ pre-built business function points
Integrated Business Systems for Direct AgricultureProcurement, Rural Distribution, e-Choupal Management,Exports, Insurance, Aqua Processing & Commodity blending
Support for 8 local languages
Company Logo
Pricing InboundLogistics
InspectionGrading
WeighingandPayment
HubLogistics
Technologicalsupport
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A win-win Deal
Company Logo
Farmers gain
• Better informationContent
• Better info timing
• Less transportationCost
• Transaction duration
• Weighing accuracy
• Professionalism
ITC gains
• Disintermediationsavings
• Freight costs
• Quality control• Risk management
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Other e-Choupal Initiative
Company Logo
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Companies using e-Choupal
network
Source: Seminar on Bottom of the Pyramid and CSR, IIM-K, Sept. 24, 2008
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Critical Analysis of ITC’s Supply Chain
Company Logo
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Stake holder AnalysisPrimary
Stakeholders
Interest
Farmer Community
Access to information – Empowered decisions – Improved agriculture
Economic benefits through lower transaction costs andprocess efficiencies
Served with dignity Knowledge bundled sale of goods and services Co-opted in product design Hope for a brighter future
ITC
Lower procurement costs Direct interaction with farmers - Control on quality &
supply security Low cost distribution channel Access to market intelligence
Commission Agents
(Kachha & Pakka
Adatiyas)
Gain access to global markets through ITC and commissionto compensate some of the loss revenue
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Efficiencies in e-Choupal network Last mile low cost solution
Full Service approach
Demand aggregation
Third party seller
Extensive use of technology
Access to information about customers
Pull based strategy
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Company Logo
Drivers ofSupply Chain
Information
Logistics at hub
Transportation
Storage facilities athub
Who are inproblems
Local Mandi
Mandi laborers
Market near Mandi
Small processors
Risk associated with e-Choupal
Eroded dominance ofCommission agent
Authenticity ofinformation
Problem of Powerand internetconnectivity
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Future of e-Choupal
Company Logo
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e-Choupal 2.0
Cmpany Logo
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e-Choupal 3.0.The Deepening
NEW BUSINESSES:
1) Rural jobs and employability
2) Personalised agri services.
MORE INTERACTION: Through Choupal Saagars and
Haats and via mobile phones
NEW TECHNOLOGY: Use of especially enabledmobile phones, analytics, new partner
www.themegallery.com Company Logo
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ITC e-Choupal Footprint
Company Logo
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