Bi-directional supply chain "Business Solutions for retailing in village"

Presented By: Manoj Kumar Paras Geetika Varshneya PG (Apparel Production) National Institue of Fashion Technology Bangalore

Vision
Rural India accounts for roughly 70% of the population. Almost 6,27,000 villages are home to 790 million Indians today. Each area is enrich with some geographical specialty. At present 85% of the organised retailing takes place in Indias urban areas.

Mission
This focuses on supply chain optimization system for bi-directional logistics. We refer to this concept of customers being suppliers as customer-supplier duality. The duality implies that supply chains are bidirectional, which is that production flows in both directions.

Objective
To established Retail store to work both as seller as well as purchaser. In selling division, they sell good to villagers while in purchasing section they purchased goods/services from villagers.

Technical Strategies
Farmer Village District Commission Commission Wholesaler Agent Agent Sub Wholesaler Retailer Consumer/ villagers

Intermediaries take 75% of MRP

25% 15% 15% 10% 10% 25% 100%

Non-transparent

Opportunistic

pricing Limited financial capability Primitive grading & pricing facilities



profiteering Wastage rampant Quality & hygiene problems

High prices Limited choices

Evolution of Indian retail

Historic/Rural Reach Traditional/Pervasiv e Reach Government Supported Modern Formats/ International

Dual supply chain Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls

PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas
Source of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution

Shopping Experience/Efficiency

In Old era of rural retail industry was using Water System for exchanging goods at: weekly markets: Primarily weekly formats catered to the daily necessities of villagers. village fairs. Village fairs were larger in size with a wide variety of goods sold from food, clothing, cosmetics and small consumer durables. Similarly same methods can be used in dual supply chain .

Target to Achieve.
Rural India lies a huge market for many products and brands. It accounts for over 50 per cent of the goods consumed in the country. For twowheelers, colour TVs and fridges rural areas account for 30 per cent or more of the market. Different part of India is rich of diff. arts, things, so these can be exchanged. About 70 percent of the more than 1.1 billion people in India live in rural areas. There is much scope to get service from them at low wages.

Financial Plan
Set up collection centers at appropriate locations in retailing area
Set up 20-25 such collection centres of 300 tonne capacity Estimated Cost : Rs. 25.0 mn/unit (without storage infra)

Dedicated logistics and marketing partner(s) available for sale can be used for these good also. Trucks who used to deliver goods to retail store can used for picking farmers good at zero cost. Same manpower can also utilized for movement of good in backward direction at Zero cost.

Thank You!