Marketing Channel Mid Review Ppt (1)

Designing Distribution Channels for Governmental Schemes(Food Security)

Submitted By

Anish Kumar – 110

Ashish Gayakwar – 114

Jayant Yadav –125

Navalpreet Singh – 132

Nitesh Kumar Rohilla – 134

Vivek Ohri – 162

Diskit Yangdol – 168

Shrey Kapoor -349

Agenda

• What is Food Security

• Current Efforts by various Stake Holders: Govt., NGOs, hawkers etc.

• Food Security Indices by World Health Organization

• Our Approach

• Food Security Supply chain design

• Conclusion

Literature Review

“Functioning of the Public Distribution System” – Sakshi Balani

Food Security and the Targeted Public Distribution System in India” – Dr Ruth Kattumuri

“Annual Planning Report 2013-14” – Department of Agriculture & Cooperation

“A Study on the Effectiveness of PDS” – Dr. S Nakkiran

“Food Security in India: Policy, Challenges and Response” – Dr. Debashis Chakrabarty

“Leakages from Public Distribution System and the way forward – Ashok Gulati & Shweta Saini

What is Food Security

• The World Food Summit of 1996 defined food security as existing “when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”.

• Thus food security implies both physical and economic access to food that meets their dietary needs, nutritional requirements and food preferences.

• Nutritious food providers have three functions: Making it Available at Affordable prices and creating Awareness to the consumers

Government Programs for Food SecurityMajor Programs to Augment Availability of Food

– National Agricultural Development Program– Accelerated Irrigation Benefit Program– Fertilizer Subsidy– Bank loans, Free Electricity

Major Programs to Improve Economic Access to Food– Public Distribution System– Mahatma Gandhi National Rural Employment Guarantee Scheme– National Food Security Bill

Major Programs & Partnerships to Improve Nutrition Security– Mid Day Meal Scheme– Integrated Child Development Scheme (ICDS)– Annapurna Scheme (Ministry of Rural Development) for senior citizens– The Nutritional Program for Adolescent Girls– Emergency feeding program ( in eight districts in Orissa)

Performance of Food Security Schemes

>The food security programs as envisioned are too narrow & equate food security with grain security>These have become classic examples of corruption, diversion, adulteration .>Food Adulteration(Milk, Fruits, Fish) with chemicals such as calcium carbide getting deadlier by the day>The cost of implementation of the PDS program is high (6 rupees for each rupee of rations delivered and 4 rupees for each litre of kerosene)>Suggestions for improvement include– Replacing ration cards with food coupons or UID.– Using IT for monitoring and visibility.>Neither of them can stop corruption or improve the performance

Food Security Indices by World Organizations

• Global Hunger Index(GHI)

• In 2011, India Ranks at 67 out of 81 countries. The GHI is composed of three equally weighted indicators – Proportion of the population that is undernourished, proportion of children who are underweight and under five mortality.

• Human Development Index(HDI)

• India ranks 134 among the 187 countries. HDI is a comparative measure of life expentancy, literacy, education and standard of living.

• Malnutrition: Integrated Child Development Services

• 47% children below the age of three years are malnourished

Our Diagnosis

• Food security need to be properly defined and the delivery processes need to be well designed and their executions monitored.

• Need articulated Changes in Consumption PatternsIn both urban and rural areas % cereals in food is declining & high value products such as

fruits, vegetables, meat, dairy products, and fish is on the rise

• Not treated as a supply chain problem. Recent advances in technologies and in the food vertical: Logistics,

• Raise of Supermarkets, Food Processing & Packaging, Wireless, Traceability using RFID are ignored.

• Coordination and Execution are absent

The Business Processes

• Creating awareness on Food, nutrition and health relations

• Preparation of the menu by crowd sourcing

• Procure the food material from suppliers (Government or private parties), the processed food manufactures and meat and milk vendors and store in the distribution center.

• Certification of quality at each stage in the chain

• Transfer the materials from the distribution center to the kitchens on a daily basis or as required or as ordered.

• The delivery of the food packets from the kitchens to the hawkers, schools and other outlets using delivery vans.

• Return of unsold food for disposal

• Financial supply chain

Execution using Smart Technologies

• Streamlined execution of food security chain for urban poor is through Smart business network that uses GPS, RFID, UID, Sensor networks, mobile, call centers etc.

• Brainstorming and discussions with stakeholders would certainly lead to an Executable Food security system to replace the currently corruption ridden inefficient system

Food Security Solution: To serve 100 Mn poor

The Food Security EcoSystem

Supply Chain Network Coordination

• The network consists of half million stake holders in big cities. Majority of them are hawkers who are small entrepreneurs.

• The asset intensive part of the network are the Kitchens and the Distribution Centers.

• The Distribution centers can be a shared service with the big retailers but the Kitchens have asset specificity.

• The Governance model can be an orchestrator type i.e. the governance is managed by a third party such as an NGO or One of the lead players such as the Kitchen owners canmanage the supply chain.

The Supply Chain Risks

• Political/social pressures for permissions• Creating nutrition awareness among consumers• Compromise on quality and hygiene• Misunderstanding by the hawkers• Resistance by other organized restaurant and Kirana shop owners• IT/ technology adoption barriers• Waste disposal & Recycling

Thank You!