Presentation agri supply chain final.ppt [Compatibility Mode]

Transcription

Efficient Information Management –
a key to agribusiness supply chain
success
How ITC leveraged information management thru e-Choupal
and transformed the Agri supply chain
By
Sachin Sharma
ITC Limited
© ITC ltd
PDF created with pdfFactory Pro trial version www.pdffactory.com
Flow of the presentation
• e-Choupal
– Background and concept
– Information Management thru e choupal
– other details of e-Choupal
• e-Choupal and Nokia Life Tool
– A beginning in to leveraging mobile technology
•
•
•
•
Information management in Agri extension activities
Choupal Saagar- an Agri business center
Reach and scale
A glimpse of some studies and awards to e-Choupal
© ITC ltd
Information Management across Agribusiness
value chain
Crop
production
Crop
Procurement
Storage and
Logistics
Domestic
and global
commodity
exchanges
Manufacturing
with product
differentiation
• Input and Weather information
• Productivity enhancement thru agri extension
• Scientific Package of practices
• Desired quality of production by inputs and varieties
• Market information
• Direct farm purchase information
• Geographical quality mapping
• Identity preservation
• Scientific storage maintaining quality specks
• Efficient logistics ensuring identity preservation
• ERP solution for WH and logistics and Handheld devices for capturing data at point of transaction
• Tracking of Global markets across clock
• Decision making considering geographical arbitrage
Other RM
procurement
• Efficient manufacturing
• Outbound logistics
Manufacturing • ERP catering to manufacturing and outbound logistics
© ITC ltd
Crop Production and Crop Procurement
Crop
production
• Input and Weather information
• Productivity enhancement thru agri extension
• Scientific Package of practices
• Desired quality of production by inputs and varieties
• Market information
• Direct farm purchase information
• Geographical quality mapping
Crop
Procurement • Identity preservation
© ITC ltd
The Potential & The Constraints
of Indian Agriculture are well known
4
Large arable land
8
Fragmented farm sizes
4
Rich & Diverse Agro-climatic
Zones
8
Heavy dependence on
Monsoon
4
Strong institutional base in R&D
8
Poor extension work at the
farm level
4
Large domestic consumption
base
8
Numerous intermediaries
Attractive export markets
8
Weak infrastructure &
inconsistent quality
4
© ITC ltd
Story of the Indian Farmer
• Because most of them are small (1.5 ha average holding) …they do
not have bargaining power
• Because all of them live in hinterlands (600,000 villages) …they do
not have access to real time information (prices, weather)
•
Because the circumstance of each one is very different (agroecological conditions, resources)… …they cannot get customized
knowledge advise (on farm practices, risk management)
•
Further compounded by weak infrastructure
– Physical, Social, Institutional
© ITC ltd
The Making of
ITC e-Choupal
© ITC ltd
The Value Chain
(Farm to Factory Gate)
Pakka
Adat
MSP
Insurance
Practices
Weather
Dept of Agri VLW
Govt
Univ.
Met Dep
Kaccha
Trader
Processor
Farmer
Mandi A W P
Broker
Agri Input Retailer
Seed
Fertilisers
Chemicals
Practices
Stockist
Input
Cos
Adat
Money Lender
© ITC ltd
The Insight - 1
4 Actually, these numerous intermediaries makeup for
weak infrastructure, and deliver critical value in each
leg at very low cost
7 But their aggregate cost makes the chain uncompetitive
7 And many times, by blocking flow of information & market
signals, they are able to extract more profits for themselves
than the value they are delivering
4 A more effective business model must be able to
leverage the physical transmission capabilities of
these intermediaries, yet disintermediate them from
the flow of information and market signals
ü Answer : Leverage the power of Information Technology
© ITC ltd
The Insight - 2
Low Risk Taking Ability
Low Margin
Low Investment
Low Value Addition
Low Productivity
Weak market Orientation
ü Answer : Leverage the power of collaborative business models
© ITC ltd
The Insight - 3
4 Information Technology and Collaborative Business Models
gave us the power to design a new model
7 But physically reaching the nook & corner of India, and facilitating
Net access to the largely illiterate farmers at low cost, and
delivering effective service is still a challenge…
4 The only historical success stories we could rely on were crossindustry !
Wide & Deep penetration of the FMCG retail channel
4 Rapid scale-up of Public Telephone Booths
4 Low cost reach & effective customer servicing by Cable TV
Operators
4
4
Answer: Unleash the power of small scale entrepreneur
© ITC ltd
Traditional Transactions
Sell: sunk costs, inconvenience,
other losses
Price Discovery
@ Sell Transaction
Mandi
Transaction
Farmer
Market
Financing
Information
(Aggr)
Money
Lender
PRODUCT
&
SERVICE
PROVIDERS
Input
Dealer
VILLAGE
Knowledg
e (Use)
Middleman
TOWN
Buy: high prices, spurious goods, information not timely
© ITC ltd
What is e-Choupal ?
The e-choupal Infrastructure
Tier 1: An ICT kiosk with Internet Access
•In the house of a trained farmer Sanchalak
•Within walking distance of target farmers
•Additional investments in Solar Power & VSATs to overcome weak
infrastructure
© ITC ltd
e-Choupal structure
Tractorable
distance
Tier 2
e-Choupal(40/hub)
HUB/
Choupal
Saagar
Tier 1
Catchment village
(5/choupal)
© ITC ltd
e-Choupal Infrastructure
V-Sat
Solar Panel
Battery
Printer
Computer
© ITC ltd
Topology of e-Choupal
Power Socket
Power Socket
Choupal Site
DW
V-Sat Hub
Battery2
Battery1
UPS2
UPS1
Solar Panel 1
eChoupal Computer
DMP Printer
Solar Panel 2
© ITC ltd
e-Choupal Website- How it looks like
News-ticker
Service panel
Announcement panel
Choupal
Radio
Pop-up
Event
Panel
Banner Ad
© ITC ltd
The Web Portals also have
Localised and customised weather information…
© ITC ltd
…Best Practices in Farming
Farmers across villages can interact among themselves
© ITC ltd
Choupal Radio
Dr. Bhatnagar
Dr. JP Tandon
Agri Expert
Agri Expert *
Remixed with
Pro VO
in Studio
20 minutes of Infotainment:
l
ITC’s Jingle
l
Topical, customised
knowledge from Agri
Expert
l
Q&A
l
Health Segment
l
Ads / Promotions
l
News wrap “The Week
that was…”
l
Feedback /Contribution
Mp3
to
Flash
Audio
Server
Online streaming audio file
© ITC ltd
Sanchalak oath – a social bonding between Sanchalak and ITC
© ITC ltd
One Typical Transaction
• Choupal Transaction
Price Information
Moisture Testing
Q&A
• That bundled
– Knowledge (what to use) and
– Information (when to use), with
– Transaction (ordering an input)
to deliver unique value to the farmer
© ITC ltd
The e-Choupal Infrastructure
• IT Infrastructure -ICT Kiosk with Internet Access
– In the house of one trained farmer- the Sanchalak
– Within walking distance of target farmers
• Physical Infrastructure - Warehousing Hub / Store
– Within tractorable distance of target farmers
– Managed by the Sanyojak
• Human Infrastructure
– Sanchalak at e choupal and sanyojak at hub
• Virtual Infrastructure- Collaborative Network of Companies
– Orchestrated by ITC
– With a Pan-Indian presence
© ITC ltd
The e-Choupal Services
• Relevant & Real-time Information
– Commodity prices, Local Weather, News
• Customized Knowledge
– Farm Management, Risk Management
• Direct Marketing Channel for Farm Produce
– Lower Transaction Costs, Better Value through Traceability
• Supply Chain for Farm Inputs
– Screened for Quality, Demand Aggregation for Competitive Prices &
Efficient Logistics
• Agri Extension Services
• CPK and IT based extension services
• Financial services
– KCC
• Employability
A unique rural Job portal
© ITC ltd
e-ChoupalBusiness Principles
• All information and knowledge is available free of cost
– This makes it easy for the customer (farmer) to be an active
participant
• The farmer is not obligated to transact with us
– The farmer will transact only if he sees value (good price, correct
weighment, full payment)
• Sanchalaks earns only if there is a transaction
– If the farmer does not see value, Sanchalak pushes us to improve.
© ITC ltd
Key Success Factor
Power
Training
Connectivity
© ITC ltd
Transactions through ITC e-Choupal
Sell: Price discovery @ village, choice, efficiency
Knowledge
(Customized)
Information
(e.g., Price
Discovery)
Mandi
Farmer
Choupal Saagar
Transactions
Sanchalak
PRODUCT
&
SERVICE
PROVIDERS
Samyojak
PAN-INDIA
VILLAGE
Buy:
TOWN
Information + Customized Knowledge @ village, high quality,
competitive prices, superior service
© ITC ltd
Communication at e-Choupal
IT infrastructure for
communication
Farmer meetings
© ITC ltd
Leveraging AV Vans for village communications
© ITC ltd
Execution Wasn’t Easy…
• Convincing farmers (Weighment, Mandi Prices)
• Aligning Middlemen (Cost, Effort, Risk Vs Margin Equation)
• Sanchalak Capability Building (IT, Communication, Entrepreneurial)
• Changing Government Regulations (APMC)
• Dealing with Poor Infrastructure (Power, Connectivity)
© ITC ltd
E Choupal and Nokia Life Tool
Leveraging the mobile power
© ITC ltd
Mobile model : Nokia Life Tool + e Choupal
Sow
Grow and
Harvest
Seed
prices
Fertilizer
prices
Comprehensive
database of
categories and
crops
Advise
Pesticide
prices
Market
prices
Daily detailed
weather
Weather
Sell
Daily price
information
© ITC ltd
Agri extension thru e choupal
Enhancing productivity and quality
© ITC ltd
Agri extension: Delivery Mechanism &
Information Management
S.No..
S.No
Information
Management
Knowledge Transferred
Tool
Coverage
1
Web based
1.
2.
3.
4.
Scientific package of Practices
Queries thru website/mail
Crop Alerts
On Field Demo thru Experts
(Scientists/Consultant/Farmer Meeting Videos)
Website/
Webcasting
e-Choupals
2
PC Aided
1.
2.
Important topics related to Best Practices
Computer Operating Manuals
CDs/Manuals
e-Choupals &
Hubs
4
Farmer/Sanchalak
Meetings
1.
2.
Inputs –Target/ Usages/Methodology
Pre-Season Orientation
Agri-Experts/
Managers
e-Choupals
5
A/v Vans
1.
2.
Movies on Crop Tech
Awareness on best practices
CDs & Staff
e-Choupals
6
Farm based
activities
1.
FLD(CPK),
Field days
2.
Scientific package of practices thru
demonstration
Farmer self reliance in seed production
e-Choupals,
registered
farmers
1.
2.
Meetings of agri experts
Field visits of Agri experts/Govt officials
One to one
interaction
At Choupal
saagar/Hub and
e choupal
7
Farmer scientist
interaction
© ITC ltd
Glimpse of Agri extension activities
Registration process
Village meetings
Scientist interaction
Expert- farmers interaction
Dr Tandon Interaction with farmers
Package of practices sharing
© ITC ltd
Key Paddy interventions
Green manuring
Transplanting with Rope
Proper Land preparation
Regular Scientist interaction
Use of hybrid seeds
Harvesting at CPK plot
© ITC ltd
Key Wheat Interventions
scientific Land preparation
Accurate sowing rate
Proper weed management
Right variety
Zero Tillage
Scientific yield estimation
© ITC ltd
Village Meetings – communication of best farm practices
© ITC ltd
Introduction of latest equipments
for productivity and quality enhancement
© ITC ltd
A Happy CPK Farmer
© ITC ltd
Connecting partners for latest practices and inputs
Agriculture department
Industry experts
Agriculture University and institutes
© ITC ltd
Storage and Logistics
• Scientific storage maintaining quality specks
• Efficient logistics ensuring identity preservation
• ERP solution for WH and logistics and Handheld devices for capturing data at point of
transaction
Storage and Logistics
© ITC ltd
Choupal Saagar- An Agri Business Hub
© ITC ltd
Typical Layout of a Choupal Sagar
Weigh Bridge
Grain Warehouse
Dispensary
Parking
Fuel Station
Training Centre
Hypermarket
Food Court
Total Land Area: Five Acres
Future Expansion
(Cold Storage / Silos)
© ITC ltd
Choupal Saagar
•
The Facility
– An eight-acre farmer facility complex
•
Includes:
– ITC procurement center:
• Complete with an electronic weighing platform, Immediate Cash Payment facility
– Retail Mall
• Apparels, footwear, groceries, electronic durable from TVs to microwaves, cosmetics
and other accessories, farm consumption products like seeds, fertilisers, pumps,
generators and even tractors, motorcycles and scooters
– Facility Center:
• Cafeteria and Kitchen, Corridor, Training center, Agri Advisory Services (Storage and
sale area), Doctor’s clinic and waiting area, Bank and Insurance
– Utilities:
• Parking area, Toilets, etc.
– Petrol Pump
© ITC ltd
© ITC ltd
Hypermarket @ Choupal Saagar brings
world-class shopping experience to rural India
© ITC ltd
Identity Preserved storage
© ITC ltd
Online data tractions thru ERP and Handheld devices
© ITC ltd
E Choupal competitive advantage
Trust – Helps
Building Deep Rural
Linkages
Commitment to
work with farmers;
capturing value for all
stakeholders
Infrastructure -
EChoupal
Physical Digital &
Human, provides
access and reach
Experience - In
Scale - Critical for all
delivery of products
and services
players to come
together
© ITC ltd
Collaborative network of partners
Farm Inputs
Public sector institues
UP Seed & TDC
NFL
Durables
•Met department
• IARI
• NRCS
• DWR
• Agriculture department
•IISR
•IISS
•NRC-Sorghum
Services
© ITC ltd
Resulting in…
• Higher Incomes for farmers through
– Increased Yields
– Improved Quality
– Reduced Transaction Costs
© ITC ltd
New Value Added Foods
© ITC ltd
Bottomline for ITC
• Better supply chain for ITC’s Food & Agri Businesses
– Costs, Quality, Traceability
• Access to the Underserved Rural Markets
– a significant business opportunity while serving society
• New Information Technology driven Business Opportunities
– Employment, Health, Education, Entertainment, e-Governance
• Shareholder Value through Serving Society
– Reliable delivery mechanism for development initiatives
© ITC ltd
Reach and Scale
Wheat
Soybean
Soybean
& Wheat
Coffee
Aqua
© ITC ltd
Supply chain infrastructure
ITC ABD
BRANCH OFFICES
Karnal
Jaipur
Kandla
Gurgaon
Lucknow
Bhopal
Jamnagar
Kolkata (Aqua)
Nagpur
HYDERABA
D Vishakhapatnam
Mumb
ai
Kakinada
PROCESSING
PLANTS
SEA PORTS
ORGANIC
PROJECTS
Nellore
Kushalnaga
r Chikmangal
ur
Chennai
© ITC ltd
Studies on e-Choupal
•
•
•
•
•
•
•
•
•
•
•
Itc's e-choupal and profitable rural transformation by Kuttayan annamalai Sachin rao World
Resource Institute, Wharton Business School
Echoupals: A Study on the Financial Sustainability of Village Internet Centers in Rural
Madhya Pradesh by Richa Kumar Science, Technology & Society Program MIT E51-070
The ITC echoupal Initiative by DAVID M . UPTON, Harward Business School
Learn from Them - A Compilation of Best Practices Govt of India Penguin Enterprise
Empowering the Poor - A Study of Rural Development Projects in India Author: Roger Harris
& Rajesh Rajora UNDP - APDIP ICT4D Series Publication
The Fortune at the Bottom of the Pyramid Author: C.K. Prahalad Wharton School
Publishing
Developing a Rural Market e-hub the case study of e-Choupal experience of ITC, B.
Bowonder, Vinay Gupta and Amit Singh, Tata Management Training Centre Pune and
Administrative Staff College of India, Hyderabad.
Bridging the rural digital divide: community based information systems, India e choupal, FAO
Fileds of online dreams, by Mohanbir Sawhney , McCormick Tribune Professor of
Technology at Northwestern University's Kellogg School of Management.
E choupal has been selected by Monitor group for break-through innovation. E choupal
achieved 8 out of 10 innovation levels in monitor framework.
E choupal has featured in outlook business featuring the m choupal.
© ITC ltd
Awards and recognitions
•
•
•
•
•
•
•
•
•
•
•
Appreciated by President of India during the national symposium to commemorate 60th year of
independence 'agriculture cannot wait: new horizons',
United Nations Industrial Development Organisation (UNIDO) Award at the international
conference on Sharing Innovative Agribusiness Solutions 2008
The Ashoka - Changemakers ‘Health For All’ Award 2006 for the Rural Health Services model
for delivery of health services through the e-Choupals.
The Stockholm Challenge 2006. This award is for using information technology for the economic
development of rural communities.
Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for
business organizations. e-Choupal was declared as one of ‘India’s Best Innovations’.
The Development Gateway Award 2005 (previously known as the Petersberg Prize) ITC is the
first Indian company and the second in the world to win this prestigious award.
The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging
Economies for 2005'.
The inaugural 'World Business Award', instituted jointly by the International Chamber of
Commerce (ICC), the HRH Prince of Wales International Business Leaders Forum (IBLF)
and the United Nations Development Programme (UNDP)
The ‘Enterprise Business Transformation Award’ for Asia Pacific (Apac), instituted by
Infosys Technologies and Wharton School of the University of Pennsylvania.
The Seagate Intelligent Enterprise of the Year 2003 Award, for the most innovative usage of
Information Technology.
The Corporate Social Responsibility Crown Award for Water Practices from UNESCO and
Water Digest for its distinguished work carried out in the water sector in India.
© ITC ltd
Change in Mindset
From
Fortune
At the bottom of pyramid
To
Fortune
For the bottom of pyramid
© ITC ltd
Change in Perspective
From
Social opportunities
in a business context
To
Business opportunities
in a societal context
© ITC ltd
Business
cannot
succeed
in societies
that fail
© ITC ltd
Thank you
© ITC ltd

Presentation agri supply chain final.ppt [Compatibility Mode]

Transcription

Similar documents

AVS24 2.4 GHZ Wireless Audio/Video Sender

Ampeg SVT-CL Schematics

onesheet - Into The Cold

HEMINEVRIN - Alcohol and Alcoholism

No trophy could ever fully express our

Chaise Lounge

A golden opportunity to A golden opportunity to

Introduction - Iglesia El Candelero de Oro

Building Capacity, Creating Jobs, Discovering and Developing

omnipresence 3d pro design