Tuesday, October 16, 2012

Fragmented farm sources .. problem for Walmart ..

Fragmented farming community is the biggest problem that Walmart is going to face in the coming years in the country. They have plans to sign up with almost 35,000 farmers across the country, training in growing good quality produce, who will supply them with 30% of the items which are to be sourced locally as part of the conditions imposed by the Govt on these foreign multi-item retailers.

Being ready to give 3% more than the market price and immediate payment, combined with the refrigerated chain network, Walmart is planning to introduce in the country on a big scale, will go a long way forward to control the 33 % wastage / rot that happens for fresh vegetables / fruits in the country. Eliminating the middle men / traders in the process who add no value to the system, than being a cost or burden to the farmers, acting as parasites, preventing farmers from getting a good price for their produce, will be a big challenge for the farmers and Walmart as a whole. 

The lessons learnt by Reliance and Birla in making their supply chains more efficient should open Walmart's eyes at how to improve the efficiency and effectiveness of the supply and sourcing network.

The coming days will see lot of innovations happening in the supply chains of these majors in the country which can benefit the country a lot by helping preserve the vegetables and prevent loss to the farmers..


No comments:

Post a Comment

Theory of Constraints game

Eliyahu Goldratt first proposed Theory of Constraints as an effective LEAN production management philosophy.  At Alliance University Bangalo...

My popular posts over the last month ..