A Seminar Paper on Importance of managing Efficient Supply chain

For Highly perishable Goods

Submitted by:

KSHITIJ JUNG K.C.

Kantipur Valley College

PU Regd. No.:
 Submitted to:

Office of the Dean, Faculty of Management

Purbanchal University, Biratnagar

February 2020

Kathmandu, Nepal

DECLARATION

I Kshitij Jung K.C. declare that this thesis entitled Importance of managing Efficient Supply chain
for Highly perishable Goods submitted in partial fulfillment of the MBA Degree, the Faculty of Management,
Purbanchal University is my original work carried out under the guidance of Dr.Uttam Kumar Regmi from the
University side and Mr. Sunetra Pradhanang from the college side, and has not been submitted anywhere for the
award of any other degree or commercial purpose. In keeping with the ethical practice in reporting scientific
information, due acknowledgements have been made wherever the findings of others have been cited.

……………………..

Kshitij Jung K.C.

 PU Reg. No:

Kantipur Valley College

ACKNOWLEDGEMENT

First and Foremost I would like to express my sincere gratitude and appreciation to Kantipur Valley College for
supporting me in this endeavor, and appreciated me in my efforts during my project.
This report is a sincere attempt of partial fulfilment of the requirement of master's in Business Administration
(MBA) under the Purbanchal University (PU). This report aims to explore the details about the organization layout
and the supply chain management in an organization.

At this moment of immense pleasure I fail to find words that would compile a sentence to express my profound
gratitude to Dr. Uttam Kumar Regmi (Project Guide) for providing valuable inputs at the various stages of my
design project making.

I am thankful to Mr. Sunetra Pradhanang my report supervisor, for his cooperation and helpful suggestions for
conducting the continuous guidelines and support to reveal the various guidelines and support to reveal the
various important aspects of my study on subjects. In this regard I would like to thank the MBA program Director
Mr. jeerendra Man Amatya, and all my teachers for their support and guidance.

Last but not the least I would like to thank all my friends for their co-operation, inspiration, guidance and support
during all stage of the preparation of this project.

Kshitij Jung K.C.

Kantipur Valley College
Executive Summary

As per the curriculum of Purbanchal University, Seminar series program is the perquisite of MBA. We got more
theoretical knowledge by obtaining the class but in this competitive market only getting theoretical knowledge is
not enough. So we need extra activities like internship or seminar series. After observing the market we can get
various information from market related to real business environment.

This report is mainly focused to examine the supply chain management of highly perishable goods i.e. vegetables
and fruits and its relevance in Nepalese market. This study is all about related to efficient management of Balkhu
Vegetable market.

This report was commissioned to examine the supply chain management of highly perishable goods. Though there
are various type of perishable goods, researcher talked about the supply chain management of Balkhu Vegetable
market. This is the big market of vegetable in Kathmandu city. In this report, researchers includes various stages of
supply chain of vegetables, challenges faced by the company and recommendation to develop the supply chain
and procedure throughout the world.

The researchers draws attention to fact what really is a supply chain in Balkhu vegetable market. Most of business
executive are still unaware of the term supply chain as well as out sourcing. Some who are familiar to the term are
indifferent in managing it. Main purpose of this report is to evaluate and improve supply chain management
performance.
ABBREVIATION

AGDP: - Agricultural Gross Domestic Products

SCM: - Supply Chain Management
APP: - Agricultural Perspective Plan
GDP: - Gross Domestic Products
NEAT: - Neighborhood Environmental Action Team
ALC: - Availability of Adult Literacy Classes
PLC: - Post Literacy Class
 TABLE OF CONTENT

Contents
DECLARATION.................................................................................................................................................................2
ACKNOWLEDGEMENT.....................................................................................................................................................3
Executive Summary.........................................................................................................................................................4
ABBREVIATION................................................................................................................................................................5
Chapter 1.........................................................................................................................................................................7
INTRODUCTION...............................................................................................................................................................7
1.1 Introduction...................................................................................................................................................7
1.1.1 The Importance of Supply Chain Management...........................................................................................9
1.1.2. Background of the study...........................................................................................................................11
1.2 General Objectives of study........................................................................................................................13
1.3 Research methodology...............................................................................................................................13
1.4 Limitation of the Study................................................................................................................................14
CHAPTER II....................................................................................................................................................................15
OBSERVATION AND FINDINGS......................................................................................................................................15
2.1 Vegetable production situation in Nepal...........................................................................................................15
Chapter 1

INTRODUCTION
1.1 Introduction

Supply Chain Management (SCM) is the active management of supply chain activities to maximize customer value
and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to
develop and run supply chain activities cover everything from product development, sourcing, production, and
logistics, as well as the information systems needed to coordinate these activities.

The concept of Supply Chain Management is based on two core ideas:

(NC STATE UNIVERSITY, APRIL 2, 2017)

 1. The first is that practically every product that reaches an end user represents the cumulative effort of
multiple organizations. These organizations are referred to collectively as the supply chain.
2. The second idea is that while supply chains have existed for a long time, most organizations have only
paid attention to what was happening within their "four walls". Few businesses understood, much less
managed, the entire chain of activities that ultimately delivered products to the final customer. The result
was disjointed and often ineffective supply chains.

The organizations that make up the supply chain are "linked" together through physical flows and information
flows.

Physical Flows

Physical flows involve the transformation, movement, and storage of goods and materials. They are the most
visible piece of the supply chain. But just as important are information flows.

Information Flows
Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the
day-to-day flow of goods and materials up and down the supply chain.

Supply chain management is the broad range of activities required to plan, control and execute a product's flow
from acquiring raw materials and production through distribution to the final customer, in the most streamlined
and cost effective way possible.

SCM encompasses integrated planning and execution of process required to optimize the flow of materials,
information and financial capital in the areas that broadly Include demand planning, Sourcing, production,
inventory management and storage, transportation or Logistic and return for excess or defective products. Both
business strategy and specialized software are used in these endeavors to create a competitive advantage. Supply
chain management is an expansive, complex undertaking that relies on each partner from suppliers to
manufacturers and beyond to run well. Because of this, effective supply chain management also requires change
management, collaboration and ricks management to create alignment and communication between all entities.

In addition, supply chain sustainability which covers environmental, social and legal issues, in addition to
sustainable procurement and the closely related concept of corporate social responsibility which evaluates a
company's effect on the environment and social well-being are areas of major concern for today's companies.
1.1.1 The Importance of Supply Chain Management

It is well known that supply chain management is an integral part of most businesses and is essential to
company success and customer satisfaction.

Source: (The council of supply chain management professionals, 1963)

Boost Customer Service

 Customers expect the correct product assortment and quantity to be delivered.
 Customers expect products to be available at the right location. (I.e. customer satisfaction diminishes of
an auto repair shop does not have the necessary parts in stock and can't fix your car for an extra day or
two.)
 Right Delivery Time- customers expect products to be delivered on time( i.e. customer satisfaction
diminishes if pizza delivery is two hours late or Christmas presents are delivered on December 26)
 Right After Sale Support – Customers expect products to be serviced quickly. (I.e. customer satisfaction
diminishes when a home furnace stops operating in the winter and repairs can't be made for days.)

Reduce Operating Costs

 Decreases Purchasing Cost- Retailers depend on supply chains to quickly deliver expensive products to
avoid holding costly inventories in stores any longer than necessary. For example, electronics stores
require fast delivery of 60" flat panel plasma HDTV's to avoid high inventory costs.
 Decreases Production Cost- Manufacturers depend on supply chains to reliably deliver materials to
assembly plants to avoid materials shortages that would shut down production. For example, an
unexpected parts shipment delay that causes an auto assembly plant shutdown can cost $20,000 per
minute and millions of dollars per day in lost wages.
 Decrease Total Supply Chain Cost- manufacturers and retailers depend on supply chain managers to
design networks that meet customer service goals at the least total cost. Efficient supply chains enable a
firm to be more competitive in the market place. For example, Dell's revolutionary computer supply chain
approach involved making each computer based on a specific customer order, then shipping the
computer directly to the customer. As a result, Dell was able to avoid having large computer inventories
sitting in warehouses and retail stores which saved millions of dollars. Also, Dell avoided carrying
computer inventories that could become technologically obsolete as computer technology changed
rapidly.

Improve Financial Position

  Increase Profit Leverage- Firms value supply chain managers because they help control and reduce supply
chain costs. This can result in dramatic increases in firm profits. For instance, U.S. consumers eat 2.7
billion packages of cereal annually, so decreasing U.S. cereal supply cost just one percent per cereal box
would result in $13 million dollars saved industry-wide as 13 billion boxes of cereal flowed through the
improved supply chain over five year period.
 Decreases Fixed Assests- Firms value supply chain managers because they decrease the use of large fixed
assests such as plants, warehouses and transportation vehicles in the supply chain. If supply chain experts
can redesign the network to properly serve U.S. customers from six warehouses rather than ten, the firm
will avoid building four very expensive buildings.
 Increases Cash Flow- Firms value supply chain managers because they speed up product flows to
customers. For example, if a firm can make and deliver a product to a customer in 10 days rather than 70
days, it can invoice the customer 60 days sooner.

Lesser known, is how supply chain management also plays a critical role in society. SCM knowledge and capabilities
can be used to support medical missions, conduct disaster relief operations, and handle other types of
emergencies.

Whether dealing with day-to-day product flows or dealing with an unexpected natural disaster, supply chain
experts roll up their sleeves and get busy. They diagnose problems, creatively work around disruptions, and figure
out how to move essential products to people in need as efficiently as possible.

1.1.2. Background of the study

Perishable commodities are those commodities which deteriorate quickly when not stored properly. Perishable
commodities usually require some sort of refrigerated storage.

Perishable commodities include: (Hamza, Nov 2016)

Dairy products and eggs

Dairy products are those commodities, which are derived from or based upon milk and include creams, yoghurts,
butter, cheese and ice cream.

Milk needs to be stored in the refrigerator at a temperature between 3 to 4ºC. If stored this way fresh milk will last
about 10 days.

Cream, yoghurts, butter, cheese and eggs should also be stored at between 3 to 4ºC. The shelf life of these
products will vary depending on their method of manufacturing and you should check individual use by dates on
the packaging.
Ice cream needs to be kept frozen at a temperature of -18 ºC or below.

All dairy products need to be kept well sealed when in storage, otherwise they will observe flavors from strong
smelling foods around them.

Meat and poultry

Meat and poultry should be stored between 1 and 3 ºC. All meat and poultry should be stored on clean trays and
covered with plastic wrap. You should never store raw and cooked foods on the same tray. Meat can be stored in
the cool room for 4-6 days, or if vacuum- sealed up to 12 weeks. Poultry can be kept for 3-4 days. If frozen, meat
and poultry can be kept for up to six months.

Seafood

Seafood has a very short shelf life and must be stored with extra care. It should be stored at 1 ºC. Unfortunately
most cool rooms are not set for temperatures as low as this, so seafood should be wrapped in plastic film and
stored in the coldest part of the cool room on a bed of crushed ice. If kept in these conditions seafood should last
for 5 to 6 days.

Live seafood such as crabs and yabbies’ should be kept at the temperatures between 1 to 3 ºC. In sealed
containers.

Cooked Foods and leftovers

These are also considered perishable and should be stored in the cool room at between 3 to 4 ºC. Cooked foods
should be covered before storage and need to be stored separate from raw foods and never on the same way.

Always allow hot foods to completely cool prior to refrigeration.

Fruit and Vegetables

Fruit and vegetables vary in their storage requirements, but as a general rule most fruit and vegetables should be
stored between 5 and 9 ºC. There are a couple of exceptions such as broccoli, which usually arrives packed on ice,
and should be stored at 1 ºC, and tropical fruits such as bananas and pineapples which should be stored at around
18 ºC.

Because fruit and vegetables require a higher temperature storage (between 7 to 10 ºC.) they are the best kept in
a separate cool room.

Lettuce should be stored in cool room, where the temperature is below 5 ºC.

Root vegetables, such as carrots, potatoes and onions are classed as semi- perishable and do not require
refrigeration.

Frozen vegetables and fruit are stored in a deep freezer where the temperature is set at 18 ºC. Or less.

Processed vegetables and fruit come in cans, jars, and packages. They should be stored on shelves in a cool dry
room.

There are lots of perishable goods which implies various method of supply chain management. T

The researcher has tried to explain about the supply chain management of vegetable and fruits sector in Nepal.

In today's competitive marketplace the pressure on organizations to find new ways to shape and deliver value to
customer grows ever stronger. Gradually, in emerging economics as well as developments markets, the power of
the seller has overtaken that of the customer. Supply chain management not only helps in cutting costs, but also
adds to maintain and improve the quality of fruits and vegetables marketed. In marketing fruits and vegetables,
which are perishable in nature, supply chain plays a crucial role. The very nature of land holding by farmers, varied
climate conditions, production spread over wide geographical area, mainly remote villages, diversified
consumptions patterns and poor infrastructure makes SCM for fruits and vegetables complicated. In Nepal SCM is
at its growing stage in marketing of fruits and vegetables. Marketing of fruits and vegetables are challenging
because of the perishability, seasonality and bulkiness and consumption habits of the consumers. In addition to
this, poor infrastructure, poor equity in SC and conventional small scale unorganized retailers, make state of the
art supply chain challenging in the present scenario. The Nepalese retail market is mainly dominated by
unorganized retailers. The unorganized retailers are homogeneous group. Recent development in retaining is the
entry of large number of organized retailers. Current supply chain catering mainly to unorganized retailers is
riddled with number of drawbacks. As per this paper important drawbacks of the current supply chain are number
of intermediaries, high level of wastage, quality degradation, poor infrastructural facilities and high cost.
Government and private operators have to join hands to improve the physical infrastructure, information sharing
and the service required for quality improvement of the supply chain.
The organized vegetable production and distribution system from local to international level is necessary in the
context of growing demand for quality vegetable seeds. Nepalese vegetable seeds sector has been facing issues
such as low level of knowledge and capacity at the farm level, dependency on middleman for trading of product,
inadequate market supports, weak input relationships and limited learning and innovation at local level. Price
fluctuation, quality seed production and demand for hybrid seed are also the major issues related to the vegetable
seeds sector of Nepal. Moreover limited number of seed storage and processing facilities, immature seeds are also
the major constraints in vegetable sector. On this background, this paper focused to importance of managing
efficient supply chain for highly perishable goods in Nepal. This helps to harmonizing the policy for achieving
strategic fits in the downstream and upstream part of the vegetables sector in Nepal.

1.2 General Objectives of study

The general objective of the study is to gain detailed information about the importance of managing efficient
supply chain for highly perishable goods however the specific objectives of this report are:

 To analyze the problems and challenges of Balkhu vegetable market

 To examine the supply chain system and know the impact of on the vegetable market.

1.3 Research methodology

This is a kind of descriptive research study because it describes what is going on vegetable and fruit market in
Nepal. The method which were used in this report are as follows:

 This report consists of qualitative method of study

 Survey interviews, observation were done. Collect the information from internet. Interviews were
provided by the administrative head and the inventory manager.

1.4 Limitation of the Study

This research, regardless of its importance, is not free from limitations. Every research activity has its own
limitations. Some of the limitations that I have come across during this research project are as follows:

 The research was conducted within the limited period of time. So some information was not available.
 This report is mainly based on secondary data collected from internet.
 The accuracy of this report depends upon the information and data provided by the websites on the
internet.
 The primary data used in this research covers the information of limited districts.
CHAPTER II

OBSERVATION AND FINDINGS

2.1 Vegetable production situation in nepal

horticultural crops are the major sector of Nepalese agriculture.horticulture
contributes about 14 percent to the total agricultural gross domestic products
(AGDP)The share of horticulture to the AGDP has increase in recent years .By
realizing the importance and role of horticulture,the agriculture perspective plan
(APP) has targeted the growth rate of horticulture GPD to 5.5 percent per annum
by 2014/2015 and growth rate of vegetable GDP in particular to 5.42 percent per
annum .Among the horticultural crop ,the vegetable sector is has the most
significant contribution to total horticultural GPD.At percent,more then two
hundred vegetable species are grown in the different climatic zones of Nepal, out
of which fifty species and their varieties are grown on the commercial basis.In
2009/2010,production of vegetable was 3,003,821 MT from an area of 235,098 ha
at an average yield of 12.77 MT/ha (MOAC,2010)

According to standards set forth by dieticians and nutritionists, the minimum per
capita per day requirement of vegetable is 300gm .The vegetable intake by Nepali
people is very low compared to this standard ,with a deficiency of 60 percent in
relation to vegetable production .Growing demand of vegetable in increasing day
by day due to a major shift by people living in the county to healthy food.
Vegetable have become an integral part of a balanced diet,and play a vital in
providing nutritional security .A result has been an improvement in the financial
situation among a majority of small-scale farmers .

A wide range of –ecological variation creates a comparative advantage for the

production of different vegetable crops.The production off-season vegetables,
utilization these ecological and income generation. The Nepalese government the
production of offseason in the hills of Nepal as a important cash crop that could
enhance that income level of farmers and thus help reduce the incidence of
poverty (APP,1995).Tomato cauliflower ,cabbage ,cucumber ,onion and chili are
the major off-season vegetables of Nepal .Among them the cultivation of
tomato ,cauliflower ,and cabbage are the most popular and the most profitable
(NARC, 2006).In term of production ,cauliflower is the most highly cultivated
vegetable at 404,580 MT ,followed by tomato (317,657MT) and cabbage
(302,067MT).Due to higher return per unit of,land the the area ,production , and
productive of vegetable is increasing day by day .Off-season vegetables farming
has played a vital role contributing to the risee in economic status of the farmers
of the hills, in part by providing regular employment and income to the marginal
farmers and his/her family members throughout the year . Although the Terai
region produces and sells more vegetables grown in the hilly region have greater
value ; these vegetables are produced during rainy season when prices are
higher . From 2001 to 2010 , the area and production level of vegetables
increased significantly . However , the increase in yield in hectare per hectare
was incremental by comparison. The area production , and productivity of study
district are shown in table 1.

Table 1 :area , production and yields of vegetables in Nepal

2.2Fruit and vegetable marketing flow in Nepal
In the case of Nepal farmer(producers ), the most
common marketing channel is this sequence :middlemen
to retailers to consumers .well organized marketing
channels do not exist. marketing of vegetables in the
study areas are carried out in the following ways.

Farm-gate selling:

This is not a prominent market practice .However ,some

farmers sell their vegetables to the buyers at the farm-
gate .In this mode of marketing ,buying and selling of
vegetables and others goods may be on an individual basis
.buyers go to the farm ,usually at a fixed time given by
producers ,though it can occur at any time without
notice .In the case of fruits ,sometimes , the produce can
be sold "in the field ", and the buyer arranges for its
harvesting . In the study area , farmers collect their
vegetables in their collection center , and buyer
purchased their produce from these collection centers.
The farm-gate price is higher in the organized farmers
collection centers than in unorganized farmers collection
centers.
Direct selling :
ten percent of farmers surveyed prefer to sells their
products after harvesting them by themselves , believing
that they will get a better price for their produce this
way . In this case , after harvesting, farmers do general
grading and bring their produce in bamboo baskets
(dokos) to the near by market on foot. In some case they
have permanent buyers in the bazar (local market), and
sometimes they visit house –to-house carrying their fresh
vegetables .This is time consuming and exhausting. Some
farmers have improved this method by using bicycles
and / or motorcycles .

Selling to Middlemendirect selling is decreasing as the

volume of production increases.It is not possible or
profitable for producers to sell their products directlyto
consumers , so selling to a middle man is an of adopted
strategy by rural and small-scale farmers . In addition
,door-to door selling makes price setting difficult because
farmers because farmers have little information regarding
prices being charged by other sellers. Engaging a
middleman wo is willing to collect products from
differentn producers and sell them to retailer to
consumers provides employment and income to both
producers and the middleman.Irrespective of volume , a
middleman collects products from producers in rural
areas, and after collecting a large volume , he/she sells the
collection at market price at a retailers shop in urban
areas wherfe demand is high . In areas where ther is no
strong cooperative network and road access to farms is
limited , middleman are key to bringing product into the
market place.

Group/Collective marketing :

farmers in marketing groups or cooperatives bring their

produce to collection centers that are managed by
farmers marketing management goups,or they wait for
traders at collection centers .Middle marketers are mainly
responsible for collecting the products from different
places and delivering the products to the wholesale
market .The products from wholesale markets are
supplied to retailers /vegetable shop owners and then to
consumers .The number of steps for a commodity to
reach to the consumers depends upon the location of the
market and the targeted place to be delivered.

Figure 4:Common flow of vegetable and fruit in Nepal

2.3 Strategic Areas For Neat Interventions
The activities and actions identified by the present study
are summarized in the following points :the short-term
proposed activities for immediate outcomes of the NEAT
project ;the effects of the short –term strategies that will
be seen outcomes of the NEAT project, the long –term
strategy to strengthen the off-season vegetables
subsectors of Nepal;and outcomes that will be seen
beyond the project period .(United States Agency For
International development,August 2011)

2.3.1 Short-term Interventions

production Introduce technological guidelines for off-
season vegetable crops starts with efficient technology
.Provisions of technological guidelines for production of
and post –harvest handling at farmers level are necessary
There is also the need to introduce appropriate varieties
for particular reasons to ensure superior quality.For
example sirjana is the suitable variety of tomato under
polyhouse conditions in hills .In areas where plastic house
technology is not possible ,the varieties swaraksha Dalila
and NS 2535 should be promoted.In case of cauliflower
jyapu and good taste.in the rainy season ,silvers cup-60
Milk way,rami and of cabbage are suitable for the hills due
to good head ,size wider ,adaptability on uniformity .In
onion ,agrifound dark red variety is best for off-season
production.jwala karma 777,akash ,and super tara
varieties of chili should be introduced in mid hills and terai
.for cucumber ,ninja 179,nepa tusi ,beli and Garima are
suitsble for mid hills and tarai .

Introduce Poly-house technology :

Off-season tomato which is produced in the hills from july

to November ,is one of the cash generating crops suitable
for small and poor farmers .During july to November
(rainy season ), tamotoes have huge export potential for
the plains of Nepal,Nepal ,and Bangaladesh.The off-
season tomato under open field has been constrained
mainly by high rainy bacterial wilt ,late blight alterneria
,and septoria leaf spot .Therefore, the standard poly-
house structure with subsidized rate should be introduce
in production pockets.

Micro irrigation technology :

Irrigation plays a major role in yield and productivity for

vegetable forming . Late monsoon and prolongate
drought affect production .Therefore small irrigation
systems for both the tarai,and small irrigarion system in
the hills including dripirrigation and water tanks.Training
and exposure visit: Almost all off-season vegetables grown
in Nepal come from its three hilly states :himachal
Pradesh , Jammu and Kasmir , and uttarkand.
farmers of these areas having greater success than their
Nepali counterparts , so as a training/exposure visit to
NepL for lead traders and farmers is recommended .

Production training :
Off-season vegetables production can be improved
significantly with a few small changes,such as using
plastics sheets and b draining acess soil moisture during
rainy summer and autumn season. Training in this method
is recommended .

Marketing promote grading and collection centers;

Development of market structure is an important
requirement for effective marketing.Building grading and
collection centers can reduce postharvest loss and also
ease bulk collection and transportation. This can be done
with matching grants cooperatives.
2.3.2Longterm interventions
production Development of off-season Vegetable blocks :

Most of the farmers in vegetable growing districts are

small and scattered. Commercialization of off-season
vegetable is only possible through the mobilization of
large group of farmers in targeted commoditis.For this
purpose ,the blocking approach for off-season vegetables
production should be promoted.

Development of hybrid varieties:

work should done on hybrid seed production with the

collaboration of NARC and private sectors.

Verification/Demonstrate of different botanical pesticides:

Biological pesticides such as seem plant extracts

,Banmara,Tutepati,Asuro,Lantana,Garlic,Ginger,Timur,and
other organic products should be evaluated for the
management of various insect-pests.Iocally avaible
resources can be utilized ,as wellas IPM approaches with
cultural practies such as high ridge planting,multiple
cropping with marigold,crop rotation,and other relevant
organic measure.Activity should be conducted in
collaboration with NARC and ADDOs.

Marketing Establishment of cold storage:

To extend the self life of vegetable and create time and

space utility,the establishment of cold storage near
Mandi(wholesale market ) is recommended. This will
reduce post-harvest losses.

Policy and Institution Government support for export

promotion:

For the export promotion of the Nepalese vegetables to

the Nepaln markets,the government has to play an
effective role to identify and minimize the non-tariff
barriers that the Nepali off-season vegetables are
currently facing.Some of the current issues and challenges
include teansferring of the Nepali products to Nepaln
trunks at the borders,considerable delay in customs
clearance,and the non inclusion of nepali vegetables and
their prices in the prices in customs clearance,and the non
inlusion of Nepali vegetables and their price bulletin
published by the regulated markets.
2.4 Findings

Trade volume and price of vegetables fluctuates each

months due to different reasons,like climate
changes,naturals climates,population etc.
Use of less management techniques and skills to improve
vegetable marketing.
Demand of the vegetable is more then the supply of
vegetables in the market.
Involvement of large number of small holder producers.
2.5 Challenges

There are a lot of factors which are treated as hurdle or

the opbstacle for the effective supply chain management
in vegetable sectors.

Inadequate cold chain system:

there are various problems related to cold china in

Nepal,such as lack of cold china facilities,inadequate
capacity of cold china,network.For this reason it is difficult
for formers and businessmen to do their business
effectively and get proper remuneration for their produce.

Presence of multiple Intermediaries:

there are large number of local traders and intermediaries

in supply china who take all the shere of farmers
income.The whole supply china in Nepal is dominated by
local trader and commission agents.Due to the presences
of intermediaries,farmers get very minimal shere of his
production.

Lack of connectivity:
There is lack of connectivity or linkage between farmers
with other partners.there is no diret contact between
farmers and customer. There is poor linkage betwwen the
marketing chennels,form the farming place to mandi.

Lack of technical application:

Inefficient technology, obsolete techniques,and old

machineries are used in supply chain in vegetables in
Nepal. Due to these things farmers and agri businessman
are deprived of using appropriate technologies and
techques to reduce the post-harvest losses and time in
operation activities.

Lack of intrastructure:

There are a lot of factors responsible poor intrastructure

like lack of storage facility,lack of processing
facility,improper handing and packaging ,poor road
connectivity.All the things are responsible for ineffective
supply china in vegetable sector in Nepal.

Lack of knowledge and awareness level of farmers:

Farmers are the real players in agriculture production.

Nepaln farmers have very poor knowledge regarding the
use of modern technologies,techniques etc . to work
effectives and efficient.They have very less knowledge
regarding the management of post-harvest
produce,quality of seed etc .Without proper knowledge
and awareness level of the farmer the supply china of F
and V connot be efficient.

Lack of transportation facility:

Transportation related challenges are very high in Nepal

because of unavailability of well transportation , mode
high cost of transportion,lack of temperature controlled
vechicle for the movement of good etc.

unit etc.for this high amount of loss occurs,late delivery of

goods happen.

Lack of standard in quality :

Quality has a strong impact on the supply chain,so it leads
to efficiency and less rejection by the customer.In Nepal,
there is a lack of quality standard,high quality
degradation.
 CHAPTER III
CONCLUSION AND RECOMMENDATION

3.1 Conclusion

In Nepal ,supply china management is at its growing stage

in marketing of fruit and vegetables. Marketing of fruits
and vegetables are challenging because of the perish
ability,seasonality and,bulkiness and consumption habits
of the Nepali consumers.

Supply chain management(SCM) is the management of

the flow of goods and services. It include the movement
and storage of raw materials,work-in-process, inventory,
and finished good from point of origin to of consumption.

After observing the vegetable production situation in

Nepal, we can conclude that if production is done in
standard format,it helps to maintain and preserve quality
of vegetable and fruits.

In this research,the researcher has tried to explain about

the supply chain of vegetable and fruits.SCM helps to
increase the quality of scale with better efficiencies.
In addition to this ,poor in infrastructure and conventional
small scale unorganized retailers, make supply chain
challenging in the present scenario.To overcome this
problem,they use various kind of marketing flow
techniques to make the product convrnient and aware
about the quality products.

Nepal is a landlocked country where more then 50

percentage of people are engaged in agriculture.but the
supply chain of vegetable and fruits is in growing phase to
manage efficiently and preserve the quality of
product.The researcher have talked about the strategic
area for NEAT intervenation and work accordingly. The
have applied various sky component of NEAT
intervenation to upgrade the quality and quantity of
vegetable in Nepal.
3.2 Recommendation

There should be proper co-ordination between the

suppliers.
Establish and operate market and marketing facilities in
potential market areas.
Encourage private sector to invest in the market.
Must give high priority to production instead of supply.
Adopting quality assurance practices and habit
More dependency on IT integrated business.