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Vegetables Ltd.
SECTION A , GROUP 6
H1 5 0 29, KR I S HNA A DI T YA G U N DI MEDA
H1 5 0 39, PA R UL S HA R MA
H1 5 0 42, P R I YA NK A VA S NA NI
H1 5 0 56, UTSAV KU M A R S I N GH
SITUATIONAL ANALYSIS
Strategy
Competitors:
Unorganized Sector
Collaborators:
EurepGAP certified
farmers & Andhra
Government
Structure
Functional
Hierarchical
Bureaucratic
System
Customer 1
Order 1
Outsourcing
Customer 2
Order 2
Order 1 + 2
Farmer 2
S&M
Exports
Farmer 3
SCM
Order 1
Farmer 1
Order 2
Total
Produce
PROBLEM STATEMENT
Farmer 1
Customer
SLA
MFFVL
Farmer 2
Farmer 3
High Margins (29.4%)
Contract
Costs include:
Transportation
Packaging
Contracts
High Operating Costs
1
2
3
High Bureaucratic costs
Extra time spent to track
orders
Unorganized Sector
Auction
Wholesaler
Shopkeeper
High Margins Quality
Costs include:
Transportation
Storage
Low Operating Costs
No Process Owners
No defined process
owners
SCM- a line-department
takes care of planning of
orders. (no central dept.)
Farmer 1
Farmer 2
Farmer 3
Initiative
Suggested Options
Timely
Delivery
ERP System
Only if
successful
Merge SCM + S&M - Divide orders placed into items and distributed
Network to be followed
Functional Structure
Appraisal
Organisational Level
Individual Level
Order Operational
Quality Efficiency
Cost
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Customer 1
Order 1
Outsourcing
Customer 2
Order 2
SCM + S&M
+ Support
Order 1
Item 1
Item 2
Order 2
Item 1
Item 2
Item1
Farmer 1
Item2
Farmer 2
Item3
Farmer 3
Total
Produce
RECOMMENDATIONS
Remove the bureaucracy from the structure and system by designating process owners for all parts of
supply chain | Centralized system
Merge different functions to make cross functional teams looking after specific geographies
Make quality teams product specific and geography specific for better quality standards
Try and add more farmers with certification and gradually backward integration by collaborating with
farmers
ADDITIONAL ISSUES
Introduction of food security bill -> subsidy when withdrawn and market open for outside competition
The people dealing with farmers take their side when it comes to quality of products
Seasonality of products and small product portfolio