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food supply chain
SUPPLY CHAIN REDESIGN
High performance supply chains: efforts of
stakeholders for last two decades are highly risk prone.
Tension between week and strong ties among supply
chain partners
New technologies are creating disruptive innovation
Globalization has created long supply chain which are
fragile and need monitoring.
Governance which involves partner selection,
coordination and execution takes centre stage
Our agenda
• Now we study the Food
Supply Chain in India, model
it using SES framework,
conduct the GRIP analysis
and finally present the
design of Food Security
Network
food supply chain
food supply chain
SES framework can help
to study
•GOVERNANCE
•RISK
•INNOVATION
•PERFORMANCE
FOOD SUPPLY CHAINS ARE
COMPLEX SYSTEMS
Food supply chains are highly complex interacting networks
linking millions of small players such as farmers, kirana’s
shops, hawkers, industries, government and other
organizations affecting the political and economic climate.
We should recognize
 The complexity of social, political and operational issues
The domain knowledge to be acquired
The analytics needed to build excellence in strategy and
execution and mitigate the risks
The appropriate governance structure needed to fulfil the
promised deliveries
A food supply chain consists of processes and
activities, that take food from its raw material form
and prepare it for our plate
( from farm to fork)
food supply chain
AGRICULTURAL PRODUCE MARKETING
COMMITTEE (APMC) Act
The APMC Act in each state of India requires all agricultural
products to be sold only in government regulated markets
called minds.
These markets impose substantial taxes on buyers, in
addition to Commission and fees taken by middlemen
Under the present Act, the processing industry cannot
buy directly from farmers and the farmer is also restricted
from entering into direct contract with any manufacturer
Result: disinterested supply chains
FOOD MANUFACTURING
Only small percentage of fresh produce or meat are processes
post harvest research and food products testing are at a very
nascent stage
Negative on food manufacturing in India
food packaging is expensive
High import duties on processing and packaging machinery
High sales tax on packaged foods
High protein good not available
PROCESSED FOOD MORE EXPENSIVE THAN
FRESHLY COOKED FOOD
food supply chain
food supply chain
Government Intervention Policies
The minimum support price offered by the Government
for 25 crops acts an and provides inputs to the PDS
The essential commodities act empowers the Govt. to
control production, distribution and pricing, etc to
secure equitable distribution and fair pricing.
This restricts interstate movement of goods
These regulations may have lost their utility and are
hampering the growth and modernization of organized
retail
Resource shortage
Talent for governance of dispersed (rural and
urban) & independently (small stakeholders)
controlled agriculture, manufacturing & service
chains to make them globally competitive.
There are no well designed hub-and -spoke
distribution network in India and partly the
taxation barriers between states act as barriers
to efficient regional distribution.
Distribution logistics in India
Fragmented ,individual company based ,technology
sophistication minimal, not integrated into the supply
chain.
Current attempts are to build hard infrastructure and no
attention to soft infrastructure such as trade facilitation,
ERP, WMS, sensor networks
Losses due to theft, spoilage, goods damage due to
manual handling ,long lead-time and resultant supply
chain inefficiencies.
India ranks35 on the 2016 logistics performance index.
Challenges facing the retail sector
Unavailability of logistics companies offering back -end
support for retailers
- refrigerated transport and warehouse facilities
- timely distribution of supplies to retail outlets
The lack of efficient and organized supply-chain
management leading to
Higher costs and complexity of sourcing and planning for
retailers and hence to consumer.
Unavailability of sufficiently skilled and trained manpower
leads to trail and error management in retail operations.
Use existing facilities more fruitfully
Take advantage of the vast network and logistical
capabilities of the existing institutions such a
post office, Road transport Corporations, Bank,
etc to bring a host of services to rural population.
Do not wait for the infrastructure to be available
food supply chain
food supply chain
food supply chain
Standardisation

standardization is a powerful tool
improving supply chain efficiency.
Standards enables partners enables better
compatibility and interoperability of their
systems and processes.
Food Safety In India
Food Safety and Standards Authority
of India (FSSAI) is an autonomous body
established under the Ministry of Health &
Family Welfare, Government of India.
The Food Safety and Standards
Authority of India is a statutory body under
Food Safety and Standards Act, 2006.
The Food Safety and Standards Act (FSS), 2006 is
the primary law for regulation of food products.
This act also sets up the formulation and
enforcement of food safety standards in India.
The FSSAI appoints food safety authorities on
the state level.
The main aim of FSSAI is to Lay down science-
based standards for articles of food to regulate
manufacture, storage, distribution, sale and import of
food To facilitate food safety
food supply chain
food supply chain
State of Food supply chain in India
Very Inefficient
Needs Good Governance
Needs Food Processing Industry
Needs Cold Chain Logistics
Needs Immediate Attention
BIPPLIOGRAHY
nptl.ac.in
https//www.omicsonline.org
https//www.mbaskool.com
https//www.slideshare.net
https://www.gktoday.in
Agri-Food Supply Chain Management: Breakthroughs in
Research and Practice by Information Resources
Management Association
The Food Supply Chain In India Untapped Comparative
Advantage: N. Viswanadham
food supply chain

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food supply chain

  • 2. SUPPLY CHAIN REDESIGN High performance supply chains: efforts of stakeholders for last two decades are highly risk prone. Tension between week and strong ties among supply chain partners New technologies are creating disruptive innovation Globalization has created long supply chain which are fragile and need monitoring. Governance which involves partner selection, coordination and execution takes centre stage
  • 3. Our agenda • Now we study the Food Supply Chain in India, model it using SES framework, conduct the GRIP analysis and finally present the design of Food Security Network
  • 6. SES framework can help to study •GOVERNANCE •RISK •INNOVATION •PERFORMANCE
  • 7. FOOD SUPPLY CHAINS ARE COMPLEX SYSTEMS Food supply chains are highly complex interacting networks linking millions of small players such as farmers, kirana’s shops, hawkers, industries, government and other organizations affecting the political and economic climate. We should recognize  The complexity of social, political and operational issues The domain knowledge to be acquired The analytics needed to build excellence in strategy and execution and mitigate the risks The appropriate governance structure needed to fulfil the promised deliveries
  • 8. A food supply chain consists of processes and activities, that take food from its raw material form and prepare it for our plate ( from farm to fork)
  • 10. AGRICULTURAL PRODUCE MARKETING COMMITTEE (APMC) Act The APMC Act in each state of India requires all agricultural products to be sold only in government regulated markets called minds. These markets impose substantial taxes on buyers, in addition to Commission and fees taken by middlemen Under the present Act, the processing industry cannot buy directly from farmers and the farmer is also restricted from entering into direct contract with any manufacturer Result: disinterested supply chains
  • 11. FOOD MANUFACTURING Only small percentage of fresh produce or meat are processes post harvest research and food products testing are at a very nascent stage Negative on food manufacturing in India food packaging is expensive High import duties on processing and packaging machinery High sales tax on packaged foods High protein good not available PROCESSED FOOD MORE EXPENSIVE THAN FRESHLY COOKED FOOD
  • 14. Government Intervention Policies The minimum support price offered by the Government for 25 crops acts an and provides inputs to the PDS The essential commodities act empowers the Govt. to control production, distribution and pricing, etc to secure equitable distribution and fair pricing. This restricts interstate movement of goods These regulations may have lost their utility and are hampering the growth and modernization of organized retail
  • 15. Resource shortage Talent for governance of dispersed (rural and urban) & independently (small stakeholders) controlled agriculture, manufacturing & service chains to make them globally competitive. There are no well designed hub-and -spoke distribution network in India and partly the taxation barriers between states act as barriers to efficient regional distribution.
  • 16. Distribution logistics in India Fragmented ,individual company based ,technology sophistication minimal, not integrated into the supply chain. Current attempts are to build hard infrastructure and no attention to soft infrastructure such as trade facilitation, ERP, WMS, sensor networks Losses due to theft, spoilage, goods damage due to manual handling ,long lead-time and resultant supply chain inefficiencies. India ranks35 on the 2016 logistics performance index.
  • 17. Challenges facing the retail sector Unavailability of logistics companies offering back -end support for retailers - refrigerated transport and warehouse facilities - timely distribution of supplies to retail outlets The lack of efficient and organized supply-chain management leading to Higher costs and complexity of sourcing and planning for retailers and hence to consumer. Unavailability of sufficiently skilled and trained manpower leads to trail and error management in retail operations.
  • 18. Use existing facilities more fruitfully Take advantage of the vast network and logistical capabilities of the existing institutions such a post office, Road transport Corporations, Bank, etc to bring a host of services to rural population. Do not wait for the infrastructure to be available
  • 22. Standardisation  standardization is a powerful tool improving supply chain efficiency. Standards enables partners enables better compatibility and interoperability of their systems and processes.
  • 23. Food Safety In India Food Safety and Standards Authority of India (FSSAI) is an autonomous body established under the Ministry of Health & Family Welfare, Government of India. The Food Safety and Standards Authority of India is a statutory body under Food Safety and Standards Act, 2006.
  • 24. The Food Safety and Standards Act (FSS), 2006 is the primary law for regulation of food products. This act also sets up the formulation and enforcement of food safety standards in India. The FSSAI appoints food safety authorities on the state level. The main aim of FSSAI is to Lay down science- based standards for articles of food to regulate manufacture, storage, distribution, sale and import of food To facilitate food safety
  • 27. State of Food supply chain in India Very Inefficient Needs Good Governance Needs Food Processing Industry Needs Cold Chain Logistics Needs Immediate Attention
  • 28. BIPPLIOGRAHY nptl.ac.in https//www.omicsonline.org https//www.mbaskool.com https//www.slideshare.net https://www.gktoday.in Agri-Food Supply Chain Management: Breakthroughs in Research and Practice by Information Resources Management Association The Food Supply Chain In India Untapped Comparative Advantage: N. Viswanadham