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2011

Supply Chain Optimization in Rural Market

Team Name: BrainChild Member 1: Sakshi Kachru Member 2: Varun Saxena College: NITIE Mumbai Email: varun.eces@gmail.com Contact: 8652039510
7/30/2011

Supply Chain in Rural Market

Figure 1: Supply Chain Framework Supply Chain Framework in Rural markets suffers from deficiencies at two ends: Supply end Distribution end

For efficient optimization of the supply chain, the above two ends need to be optimized. Supply end optimization This can be done through following processes: Using the time profit to reduce the customer cost Using appropiate supply chain modeller depending on the product category Forming clusters of different rural areas and building agribusiness partnership

Time based Optimization Reduced cycle time to configure customer orders Greater flexibility to meet customer demand changes Responsiveness to forecast variance

Cost based Optimization Determining strategic configuration for different rural markets Increased shipment density Optimize collaboration with local retailers of rural markets

Distribution end optimization

Figure 2: Suggested Distribution Model We suggest the optimization of distribution end in the supply chain through a distribution model suggested above. The disaster area in the above figure refers to the remote areas in the rural markets which pose a challenge to the supply chains being deployed by different companies and serve as disaster for the efficient supply chains. The Point of Collections (PoC) and the Point of Extended Delivery (PoED) together form the means to reach these remote areas within stipulated time and delivering the requisite amount of the products to the selling centres in the rural markets. Some of the techniques used in our model include: Cross Docking, Information Management, Quality Control and Quality Assurance.

Conclusion The proposed model should work for optimization of supply chain management in rural market and should enhance the operational and the financial performance of companies working in rural markets because: Collaboration among all the entities which is one of the major parameters for smooth functioning of a supply chain Feedback from end consumers is given due weightage and relevant changes being made regularly Celerity of the supply chain is emphasized

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