tsmg

Tata Strategic studied the procurement structures of the client and its competitors to understand the economics of intermediaries and other prevalent market practices. The traditional setup of having a single cooperative society per village was identified as yielding limited results. Structural changes in terms of formation of self help groups (SHGs) and multiple collection points in each village were identified. It was further identified that the competitor’s low prices coupled with micro-credit was more attractive to the farmer than the client’s offer of a high procurement price. A competitive micro-credit offering was developed for the client. The possibility of using NGOs as a means to deliver micro-credit to SHGs was also studied.Further, solutions were developed to address lacunae in day-to-day operations such as measurement of milk, its quality and bill payment mechanisms.

The client has started implementing these initiatives in some catchment areas which had become defunct. The volume of milk procured from these areas has gone up significantly.

TSMG studied the procurement structures of the client and its competitors to understand the economics of intermediaries and other prevalent market practices. The traditional setup of having a single cooperative society per village was identified as yielding limited results. Structural changes in terms of formation of self help groups (SHGs) and multiple collection points in each village were identified. It was further identified that the competitor’s low prices coupled with micro-credit was more attractive to the farmer than the client’s offer of a high procurement price. A competitive micro-credit offering was developed for the client. The possibility of using NGOs as a means to deliver micro-credit to SHGs was also studied.Further, solutions were developed to address lacunae in day-to-day operations such as measurement of milk, its quality and bill payment mechanisms.

The client has started implementing these initiatives in some catchment areas which had become defunct. The volume of milk procured from these areas has gone up significantly.