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Food Mileage It refers to the distance food travels

from farm to plate


285 kms

BARGA
RH

RAIPU
R

Do we really need to tell U all this ?

44 kms
ms
K
8
36

28
kms

RANC
HI

PADIABAHA
L

10
km
s

MANESW
ARin miles the less fresh they become
The more the vegetables travel
& is addition in the cost of the goods & customer pays for it.

data on
deman
d
-supply
and
market
ing
platfor
m to
the
farmer
s any
agri
busine
ss will

elephant

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a
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T V ne
an
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a
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um t
im or
in p e
M p ic
Su pr

So many solution, but still why


Withou
is there
t
reliable
a
crisis
Blind men & in
the Agriculture ?
data on
Cold
Chain
Solution

Fr
ee
e bi
Se s
fe eds
rt i
ze li
r

Loan
Grant
Subsid
s
y
Only a crystal clear question yields a transparent

Current Popular Vegetable Supply Chain


Current State : Too many steps, Too little value addition
Loss in transit 40%

Profit hike end to end


% to 300 %

Unorganized, unregulated, inefficient &


unprofessional.
A middleman dominated market.
Adhoc / arbitrary decisions on quality &
price.
High transportation cost & high losses.
Poor logistic & storage management.
Low use of IT technology.

250

Problems what we understand & our feeling

What does farmer really need ?


Key Problems of
Farmer

Limited choice of buyers


Lack of labour
Unreasonable market prices
Rising input costs of agro
suppliers

SuppliersBuyers
Transporters

Labours

FAR
MER

All the other industries uses IT & software to manage operations whereas
farmers have not been IT enabled & are cut off from the new world.

Top Issues (Our feeling)


Perishable produce demand/supply data is not
available/accurate/reliable, leading to over production & wrong crop
selection.
Fresh vegetable sales primarily through unorganised sector high
fluctuation in price, availability & quality.
No efficient marketing & distribution alternative to current Mandi
system. Too many middleman too little value additions.
There is little or no use of IT / MIS / Technology.
Poor post harvest management results in high wastage (- 30 to 40 %)

Pain Areas
Real Crisis

The Farmers

Farmers Crisis
Fiction

Fact from

Pain Areas l Customer Spectrum


Huge domestic demand, Escalating prices & unmet needs
Bottom of the
Pyramid

> 40 % in volume
Buy from neighbourhood markets (evening)
Pay more for less quality

Middle Income Group


~30% in volume
Buy from street vendors
Price + Quality conscious

High Income Group

~ 5% in volume
Buy from retail chains
Quality & variety conscious

Hotels & Caterers


~ 15 % of volume

Buy from wholesale mandi

10 % among the food


processing
unit.B2B segment & currently
Sakambharee
targets
untapped areas

The Buyer
Nuclear
family No
time, Busy
lifestyle
Housewife
Fluctuating
Cost, Poor
Quality
Urban
Customers
Shopping
experience,
ambience

Hotels
Unreliable
suppliers

s
Lack of

data / No
visibility to
supply or
demand
Reality
Check
Lack of data
regarding
crop
production
No
accurate,
dynamic
data on
supply
No market
research on
customer
demand

Pain Areas

MARKETING THE
MISSING LINK ?

When
footwear
can be
sold in
mall
through
Branding,
Why not
vegetables
?

Vegetables
too need
proper
Branding

Customer
s Home
Delivery

d
an
m
i
De
at
& o rm
f
In
on

Hotel
s

Host
els
BUYE
RS

Sabji
walles
Retailers
(Franchisee)

Shakambh
aree

Cu
de sto
fe m m
ed a er
b a nd
ck

Value Proposition
U cannot connect the dots looking forward, U can only connect
them looking backward.
-Steve
Jobs

Connecting the dots :


Organize the Unorganized rural to urban supply chain.
Develop online supply chain technology backbone with offline
distribution channel.
Create a network of farmers, customers, retailers, suppliers
through marketing & use of technology
Every stakeholder is alternately a buyer or seller of agro goods,
we try to link them by common system.
Home delivery of fresh vegetables from farm to kitchen.

www.sabjibhaji.
org

People used to pay more for value


addition.

Think Global Act Local

Dabbawalla story
They are illiterate but doing it from last 150 years
providing service to all section of society from
slumdwellers to crorepatis .
Can we
Dabba wallas Success
Factors
Highly decentralized
operations flexible & scalable
Use of low cost transport of
local trains
Use of human power for last
mile delivery - No fuel related
hikes.
Strong customer relation
personal & localised
Delivery excellence fixed
time / professionalism

replicate this
system in the
vegetable
supply chain ?

1st fix the process


Then implement
technology otherwise will
be a failure

SHAKAMBAREE : Big Picture


Unlock revenue potential across value
Social Progress
chain
Financial
Organizing the
Success

An untapped,
niche market
with very few
organized,
entities
Reduced
wastage in
transit = more
revenue
Has potential to
jumpstart other
agri-dependent
ventures
Potential to
scale across
other district as
core problem is
wide spread.

large unorganized
fresh vege sector
of India bottom
of pyramid.
Support to
Farmer
Transporting
traditional, eco
Cleaning / Sorting
friendly farm
practices, organic
Shakamba
farming through
Compost manure
ree
better marketing.
From waste
Convert waste to
Packing
compost,
providing low cost
manure back to
farmers.
Under
Franchisee Outlet privileged/Disable
Home Delivery
Retail Vendors/Pushcart
d & urban poor get
employment
opportunities

Where do we go from here ??


We cant solve problems by using the same kind of thinking we used when
we created them.
THE
-Albert Einstein

SOLUTION

Use of Technology

Planning & Coordination

Quality Control

Shakambaree
Marketing & Distribution
Training &
Support
Branding & Promotion

USP of
Shakambaree

Order quantity Aggregating the demand from multiple buyers, and


then wholesale volumes broken down into retail lots.
Better Predictability Demand & supply prediction, more realistic, long
term pricing avoids erratic daily swings.
Price Multiple buyers and sellers, hence better price discovery,
transparent & competitive.
Freshness As the buyer can set his own schedule & routes, fresh goods
can be shipped with minimal halts or delays.
Delivery Hub & spoke delivery model (much like how dubbawallahs
operate), low cost transport (push carts, cycles) in combination with
vehicles for widest reach.
Branding A common BRAND which adds value & quality to seller.( New
to agri field.)
Job Creation Agri-sector employs over 67 % of our population directly.
Several more are involved indirectly through the supply chain. Through
SHG women, we hope to create new jobs at various nodes of the chain.
Social Change Organise the unorganised, create sustainable ventures
across the chain, Job creation, Promote underprivileged.

Customer Profile
Hum hai har ek ke liye

SUGGESTED MARKETING
STRATEGIES
-

c
an
Fr
hi
e

se Re
t
a
iler
s

e ry
om ve
H e li
D

Kissan to Jawan (CRPF / Police Canteen)


Kissan to School Hostels
Farm to Kitchen (Home delivery of fresh vegetables)
www.sabjibhaji.org
Nature Fresh franchisee vegetable outlet
( We believe through franchisee model we can offer
enormous scope to aspiring entrepreneur)
Hub & spoke model for scalability, expansion & growth.

Key Differentiations
Entrepreneur driven model, riding on top of
existing networks.
An omni channel operations both online &
offline sales.
Delivery : Hub & spoke delivery model
(dibbawalas operation) Low cost transport (Push
Cart, Cycles) for last mode of distribution in
combination with vehicles for wider reach.
Technologies & processes are built to be simple,
low cost & widest reach across all customers base.
We doesnt threaten the livelihood of existing
people in this trade. We help to retain, regroup & reorganise them to become more professional &
successful in the current activities.

You may like to ask us How can someone buy vegetables online ? That's impossible !

Its not mandatory to use our web ordering feature, what we advocate is advanced planning
& ordering reduces wastage & ensures availability. Customer can order through phone.
All orders will get collected at our back office each day.
Demand supply prediction with time we will use statistical tools to predict demand from
walk in & adhoc customers (current example Train,Bus,Movie tickets)
Gradual change in mind set from walk in, to phone in, to paper, to email to online forms.
Doesnt we face any resistance from the current middleman, What will happen to them?

Gabbar singh yeh keh kar gaya Jo dar gaya so mar gaya
(from a Hindi movie One who is afraid, is already dead)
Value addition & predictability brings stable revenue & assurance for everyone.
They may be value added resellers.
Intermediaries Sorting, grading, packing, transporting.
Distributors- Retailers many formats

Why the Government or Private


sector not been able to find a
solution to this problem ?

The systems are usually closed, vendor specific or too complex &
its reach & volume is limited.
Frequent changes in administrator & bureaucrats derail most
projects.
Sometimes its just failing in implementation, but the planning &
intention is really great.
Private sector cater only to the top 5% of Income/Social bracket &
that too in mentors. Hence the effect arent felt at the bottom of
the pyramid.
Big investments requires in offline retail economic slowdown has
hit this segment
In case of large retailers - they are trying to completely bypass
existing traders & small time vendors, leading to stiff resistance &
negativity.
Pure NGO/NPO Driven by passion, but lack sustainability &
management

Itna
Bharosaa

Selling is a separate specialized activity which


requires time, energy, planning, implementation &
of course additional investment.

We are entrepreneur (3rd generation businessman),


we know how to make it big.
We see an opportunity in every problem
Working for a social cause DOES NOT MEAN we need
to be making loss.
The middle path : Social + Business Goals = Social
Entrepreneur

What have we done so far?


We are 2 months away from delivery, during the 7 months
pregnancy
Our web portal and mobile app is ready.
First franchisee store is going to open in Sambalpur in couple of
weeks.
Learn how to produce vermi compost at Sambalpur Goshala already
tested liquid fertiliser, vermi compost & trying to replicate this into 12
more districts.
Done a customer SURVEY with 650 consumers to know there food
basket.
Made a group of 100 sales personnel team for the last mile delivery.

Where there is a will, there is a way....

THANK YOU
Shakambaree Organics
Pvt. Ltd.
www.sabjibhaji.org
Nature Fresh (Franchisee
Outlet)
Gobar Ganesh (Vermi

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