A Diagnostic Study Report on Supply Chain in Craft Clusters
A Diagnostic Study Report on Supply
Chain in Craft Clusters
Table of contentsChapter
no: Particulars
1 Primary Objective Secondary Objective
2 Introduction Economic Activities
Products available in the cluster
3 Description of present business process and supply chain
4 Value Chain Analysis
5 Intervention by NGOs and Govt. in the Burdhwan District
6 Problem identification
7 SWOT analysis
8 Conclusion
9 References
ObjectivesO Primary objective:To gain insight through a diagnostic study into
specialties, resources, environment, demography and specific realities of the targeted craft cluster
O Secondary objectives:• To study the existing and potential supply chain
formats of the clusters• To understand the value chain analysis• To be able to find out strength, weakness,
opportunity and threat in context of the targeted craft cluster
SodepurO It is a part of Panihati Municipality under
Barrackpore sub-division and North 24 Parganas district of the state of West Bengal.
O Economic activities: It is the hometown of great artisans of Indian
handicraft, The leather craft is also the only source of income
for many residence. Other occupation is agriculture
Product of the cluster
Problem facing
Raw MaterialMachinery and
Production
O Absence of Raw Material Dealer in the Cluster causes High Inventory requirement
O Intermediary dealers have monopolistic control over the Raw materials
O High Working Capital Procuring Raw Material from Tamil Nadu
O Low ProductivityO Inconsistent
FinishingO Low Quality of Raw
MaterialO Lack of Knowledge
and AwarenessO Major Operations
are ManualO Lack of Application
of Sophisticated Machinery
Products & MarketingDesign & Production
O Lack of Order from Exporters
O Low Participation in Local Market
O Absence of Direct Export Initiative
O Inadequate Exploring Alternative Channels of Marketing like trade fairs
O Minimum Machinery Application in design
O Lack of Knowledge in design diversification
O Man power requirement –• Inadequate skilled manpower
• Low Productivity• Low Wage Rate
• Remained a Traditional Family Business• Lack of Knowledge and Awareness
• Finance and working capital:• High Working Capital Requirement
• High Cost of Raw Material• Shortage of finance
Background of the Entrepreneurs and their Enterprises
• Market-• Technology-• Input available-• Innovative
capability
• Competition-• Skill base-• Financial
constraint-
• Skill-• Business
environment-• Market-• Input
available-
• Market-• Technology-• Input-• Innovative
capability
S W
OT
EXISITING FORMAT of
supply chain management
Source: Final DSR, leather cluster- kolkata
POTENTIAL FORMAT
IN SUPPLY CHAIN
Source: Final DSR, leather cluster- kolkata
Reasons for adapting the potential supply chain format
O Better support to the artisans
O Better financial help
O Larger exposure of the market demand
O Better supply chain
O More revenue
Behala Situated in South
West Kolkata
officially known as South Suburban
Municipality until it was merged with the
Kolkata Municipal Corporation (KMC) on
January, 1984.
O Economic activities:• Stores: Clothes, jeweler, electronic items,
sports goods, books and footwear can be found in stores from Taratala to Manton.
• Hawker:• Shopping malls and factory outlet
Products:Behala in West Bengal is known for Tangail
and Baluchari Sarees.
Problem facing
Absence of
support system
Market Dynam
ics
Financial
facility
City Econo
my
S
• Brand equity • Product diversification• Linkage with supportive Institute,
W
• Absence of marketing platform of state apex body• Infrastructure• Quality of dye
O
• Scope of product diversification• Website for cluster catalogue• Large volume of buyers- buying house, ITC etc.
T• Emergence of power loom• competition
Existing format in supply chain
Source: http://nopr.Niscair.Res.In/bitstream/123456789/627
0/1/IJTK%208(4)%20502-509.Pdf
VALUE CHAIN ANALYSIS
SOURCE:
Burdhman district
O Economic activities: Agricultural based economy
Known for hand-woven fabrics, textiles and sarees,
Cooperative, consortium encourages waiving, Many people specially women are placed at the
cottage industry.
Products : dupattas, stoles, sarees and dress materials.
Problem
facing
Labor problem
Quality of raw
material
Delay in supply raw
material
competition
-Product development-Human resources-Financial support
-Raw material supply-absence of alternative
marketing channel-labor problem
-Scope for product diversification-exposure visit- Geographical
Indication
- Competition
-decline demand
- Increase demand for low cost power loom
products
S WO T
Existing format in supply chain
Source:: http://nopr.niscair.res.in/bitstream/123456789/6270/1/IJTK%208(4)%20502-509.pdf
Existing format of the supply chain
REASONS FOR IMPLEMENTING THIS PROTENTIAL FORMAT
O • Removal of the mahajan system
O • Better revenueO • Organized supply chain formatO • Artisans gain better
knowledgeO • A consortium gives a better
exposure and helps the artisans in gaining the raw materials at a lower cost. It helps in getting them a better exposure too
Value chain analysis
Source:
NHDCO National Handloom Development Corporation Limited
(NHDC) was set up in February 1983 as a Public Sector Undertaking by the Government of India.
O MISSION : To be a National Level Agency for the promotion and development of the Handloom Sector.
O OBJECTIVES:
1. To carry on in India or elsewhere, the business of buying, stocking, marketing or otherwise controlling the distribution of all types of yarn for the benefit of handloom sector.
2. To procure, stock distribute and sell all types of raw materials, dyes & chemicals needed by the handloom sector.
Role of NHDC IN SUPPLY CHAIN:
O Specialty of cluster. Objective is to reduce raw material problem, now
the 60% supply through Govt. contribution and 40% cluster by
consortium.
Burdhaman Handlooms developers and producer’s private ltd,
O It is a consortium.
O No of members are at least 10 to make the facility center, with facility centre consortium form.
O One cluster is made of 150 people, consists of 200*10 = 2000 artisans work on daily basis.
O Finish product – traditional tangi sarees.
O Main season for the product- 3-4 months before Durga Puja upto 1 month after puja. Other seasons of demand are – local and international fairs for marketing, Bengali new year.
Getting the order
Getting the finish product
Distributed to Tantuja, and
sometimes to NHDC
1.Gets the order from Tantuja and raw
material from yarn bank , NHDC.
2. Distribute the order to common facility centers,
3. Common facility centers distribute the
order to self improved waivers.
Gram kalan gram samabay samity, samudragar
O It is a cooperative,
O No of members are: 394. Product line: saree 100% cotton, tangai, Stoll is only for export.
O Role of the cooperation are: business performance, services to the members, planning for future way of extension, to help earning of waivers.
Supply chain -
Raw material : source from NHDC, at the rate of 6 % reimbursement duty benefit on tax. Problem facing in raw material: quality, delay in supply of raw material. If raw material collect from other source they have to pay much more than NHDC charges.
O Getting duty drawback in distribution
O It is a part of Panihati Municipality under Barrackpore sub-division and North 24 Parganas district of the state of West Bengal.
O Economic activities: It is the hometown of great artisans of Indian
handicraft, The leather craft is also the only source of income
for many residence. Other occupation is agriculture
Product of the cluster
Problem facing
Raw MaterialMachinery and
Production
O Absence of Raw Material Dealer in the Cluster causes High Inventory requirement
O Intermediary dealers have monopolistic control over the Raw materials
O High Working Capital Procuring Raw Material from Tamil Nadu
O Low ProductivityO Inconsistent
FinishingO Low Quality of Raw
MaterialO Lack of Knowledge
and AwarenessO Major Operations
are ManualO Lack of Application
of Sophisticated Machinery
Products & MarketingDesign & Production
O Lack of Order from Exporters
O Low Participation in Local Market
O Absence of Direct Export Initiative
O Inadequate Exploring Alternative Channels of Marketing like trade fairs
O Minimum Machinery Application in design
O Lack of Knowledge in design diversification
O Man power requirement –• Inadequate skilled manpower
• Low Productivity• Low Wage Rate
• Remained a Traditional Family Business• Lack of Knowledge and Awareness
• Finance and working capital:• High Working Capital Requirement
• High Cost of Raw Material• Shortage of finance
Background of the Entrepreneurs and their Enterprises
• Market-• Technology-• Input available-• Innovative
capability
• Competition-• Skill base-• Financial
constraint-
• Skill-• Business
environment-• Market-• Input
available-
• Market-• Technology-• Input-• Innovative
capability
S W
OT
EXISITING FORMAT of
supply chain management
Source:Final DSR, leather cluster-kolkata
POTENTIAL FORMAT
IN SUPPLY CHAIN
Source:Final DSR, leather cluster-kolkata
Reasons for applying the potential supply chain format:
O • Removal of the mahajan system
O • Better revenueO • Organized supply chain formatO • Artisans gain better
knowledgeO • A consortium gives a better
exposure and helps the artisans in gaining the raw materials at a lower cost. It helps in getting them a better exposure too
Case study
A diagonostic report on cluster development programme of shantipur handloom cluster, nadia, west bengal
HIGHLIGHTS OF CASE STUDY
Introduction of shantipur cluster
Small town of nadia district Comes under ranaghat sub division Known for jacquard sarees and dhoti Exporter since 17th century Gangajamuna, nilambri, rajmahal
Advantages of cooperative model over traditional model
O More integrated process flowO Better organisational infrastructureO Cost effective technologyO Lack of direct participation of share
holder in administration
conclusion
O The craft cluster study has helped us in gaining immense knowledge about the various Indian crafts and the working conditions of our craftsmen.
O We were able to interpret various problems faced by the people working in this field. Personal interviews helped us understand the social, economical and cultural variations. The craft industry is on its verge of extinction due to various factors. People are oriented towards machine made products as compared to hand made items. Other than that, the workers are payed very less wages. We are of firm belief that the government should take quick action in stabilizing the condition and help the workers financially.
bibliographyO JournalsO DIAGNOSTIC STUDY REPORTFORLEATHER
GOODS CLUSTER, SANTINIKETANO Diagnostic Study Report onImplementing
BDS in theKolkata Leather ClusterO Diagnostic Study of the Handloom Cluster of
Burdhwan District, Under the IHDC Scheme
O WebsitesO http://nopr.niscair.res.in/bitstream/
123456789/6270/1/IJTK%208(4)%20502-509.pdf