Itc Echoupal

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ITC eChoupal Initiative 1. What was ITC’s motivation for creating the eChoupal
IBD as a division of ITC was the agricultural commodities export division and in March 1999 it was clear that it was lagging behind other divisions in the company. What could be done? The main crop that IBD was responsible for was Soybean, one of the causes of the lag behind other divisions was the inefficiencies in the supply chain network of the industry. By creating the eChoupal ITC would attempt to help create a more efficient and profitable supply chain model than the mandi model. 2. What are the old and new physical flows and information flows in the channel?
In the Mandi Model: information was available to the farmer by either the government, town centre talk or yesterdays prices from the Mandi. Physcially product was moved from the farm across the region to the Mandi (auction) and then taken to the buyer for either export or processing. In the eChoupal model, an internet capable computer was set up with access to a website that provided industry specific information regarding industry transactions and prices as well as regionalized weather reports and information sharing such as best practices. Physically product was moved from the farm direct to the buyers (ITC) facilities. Farmers could also by product from the ITC through the eChoupal which allowed them to get these items without goiung to town etc.

3. What principles did ITC employ as it built the newly fashioned supply chain?
ITC employed the principle of trust and confidence as it chose a respectable farmer in the community to be in charge of the eChoupal (sanschlak). In addition they offered this to the village free and did not try to force them in to any agreements, instead letting them realize for themselves what the best deal was.

4. What barriers did ITC face in embarking on this…...

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