ITC ECHOUPAL CASE STUDY PDF

LinkedIn The ITC eChoupal Initiative Case Solution Also providing with the daily news about the government decisions which have influenced on the agricultural prices and its market Protecting the farmers from being cheated on selling of the crops by the middle party and eliminating the cost inflation. The farmers could also conduct questions regarding the growth and protection of the crop to the ITC on eChoupal which would be handled by the experts for answering the questions. These were the reasons as to why ITC had worked on the eChoupal Initiative to create long-term relationships with the suppliers, providing the necessary information such as soil to the farmers for growing better quality products and providing a complete information on the demand of the product, Mandi trading volume and price lists which would protect them from being cheated by the middle party. Traditional and Modern method for Physical and Information flow Traditional Method for Physical and Information flow The traditional method for the information flow among the farmers was through the traditional place Choupal at which the farmers would meet for sharing ideas, news and knowledge. The villagers called this place as their own where they would discuss agriculture. However, the farmers were notable to gain the accurate knowledge regarding the weather, market prices of the agricultural commodities and the market demand for the product through the traditional method of informational flow.

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LinkedIn The ITC eChoupal Initiative Case Solution Also providing with the daily news about the government decisions which have influenced on the agricultural prices and its market Protecting the farmers from being cheated on selling of the crops by the middle party and eliminating the cost inflation. The farmers could also conduct questions regarding the growth and protection of the crop to the ITC on eChoupal which would be handled by the experts for answering the questions.

These were the reasons as to why ITC had worked on the eChoupal Initiative to create long-term relationships with the suppliers, providing the necessary information such as soil to the farmers for growing better quality products and providing a complete information on the demand of the product, Mandi trading volume and price lists which would protect them from being cheated by the middle party.

Traditional and Modern method for Physical and Information flow Traditional Method for Physical and Information flow The traditional method for the information flow among the farmers was through the traditional place Choupal at which the farmers would meet for sharing ideas, news and knowledge. The villagers called this place as their own where they would discuss agriculture.

However, the farmers were notable to gain the accurate knowledge regarding the weather, market prices of the agricultural commodities and the market demand for the product through the traditional method of informational flow. The traditional method for the physical flow of the agricultural products was that once the crops had been harvested, the products would be shifted to the Mandi for bidding.

Since around farmers go to Mandi for selling of crops, there is pressure on the market. Due to lack of knowledge of the agriculture market and its prices, the farmers usually get lower profit. Whereas the commission agents who buy the products at alow price in Mandi from the farmers through bidding, they are able to purchase the product at low cost and sell to ITC at its original price. Lastly, the agricultural products are received by the ITC from the CA and are further exported to other countries.

The ITC had supplied computer kits to each of the villages along with a printer and an internet connection. The purpose of eChoupal was to bring all the villagers on one website by the name of www.

The company ITC was also providing other information regarding the crops such as the weather, market demand, prices and effective soil samples. The modern method for the physical flow of the products was now simple as the farmers could be able to sell directly to the ITC hub, Mandi or another buyer.

ITC was able to convince the government for removing the transactions which should only be conducted in Mandi by giving a logical explanation. Since the farmers are able to gain better information about the market prices and demand for the product, the farmers would be able to sell their products at reasonable prices or bids. Principles of Effective Supply Chain ITC with its eChoupal Initiative has managed to improve the supply chain by eliminating cost inflation, protecting farmers from unfair prices and providing the correct price information and the market demand.

There were several principles for creating aneffective supply chain and following are the principles of the newly created effective supply chain: The purpose of theeChoupal initiative was to create along-term relationship with its suppliers i. The farmers were not required to be bound by a contract if theyuse the ITC eChoupal services for looking atthe market prices. The farmers were allowed to sell the crops in any market which could be the ITC hub, Mandi or other firms One of the leader farmers of Sanchalak became the role model for guiding the farmers and villagers on how to use the computer and description on the eChoupal website features.

Sanchalak would also provide information about the weather forecasts and the Mandi transaction through prints which are posted on the village noticeboard. Sanchalak pledged in front of the villagers for holding thestandards and not conducting unfair means which would benefit him. The commission agents were renamed as Samyojak which were responsible for setting ITC eChoupal and conducting transactions of selling and purchasing for ITC.

Itsmain responsibility was assisting Sanchalak and helping the villagers understanding the new supply chain potential benefits. The direct contact with the help of ITC eChoupal helped enabled the farmers in properly sowing, irrigating and harvesting which in return would leverage ITC for getting better quality agricultural products The above principles have caused effective supply chain among the farmers and helped in eliminating the cost inflation and generate better profits.

Implication during the implementation of eChoupal Initiative Lack of Technology and poverty There was a number of implications which had been caused by the implementation of eChoupal Initiative. The first major problem was that India during , was an underdeveloped country and lacked technology. The literacy rate was high as many of the people were uneducated and many of the people were living in the rural area did not have any clue about computers.

It was difficult to educate the people on how to use the new eChoupal initiative which would help the farmers improve their profit generation and gain knowledge on the market. Proper training would be needed for educating the villagers and farmers about the advantage of eChoupal service……………. This is just a sample partial case solution.

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ITC eChoupal Case Case Study

The conventional Choupal system allows exploitation of farmers by commission agents. This mistake did not allow communication between ITC and farmers. The negligence of farmers by ITC is risky and cause reduced confidence among farmers. Moreover, the flow of information among stakeholders is inhibited by lack of information channels and controls. The farmer is left without any knowledge concerning prices and improved farming practices. Lack of user involvement is evidenced in the conventional Choupal system.

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