22.01.2021<\/p>\n\n\n\n
Today starts a blog series including 5 articles presenting the results of the science competition organised by the Global Business School Network and the HUMLOG Institute at Hanken School of Economics: The HUMLOG Challenge. Each of the posts will be published in Friday afternoon weekly. Below you find the first post from a team representing The Goa Institute of Management in India. They performed within the top 5 presentations in the contest.<\/p>\n\n\n\n
By Mohamed Irfan M, Navya Khurana, Nipun Allurwar, Sartyaki Manna, Seemakshi Agarwal, PGDM – Big Data Analytics 2020-2022, Goa Institute of Management, India<\/em><\/p>\n\n\n\n Farmers of India\nface lot of issues starting from cultivating the crop till receiving proper\nmonetary returns for their cultivated crops. The existing agricultural economy\nwith various flaws and unexpected climatic changes pose major threat to farmers\nfrom receiving proper return on investment. This has made many farmers to leave\nfarming and move to other employment opportunities. Here we have discussed one\nof the issues faced by Sugarcane farmers and have proposed a supply chain\nsolution to it. <\/p>\n\n\n\n Sugarcane is a\nperishable crop and once it is harvested, the sugar content of crop starts\nreducing, leading to overall reduction in the weight of the crop. Hence it is\nnecessary to crush the crop and extract the juice from it immediately in the\nnearby Sugar mill. The time taken between cutting the crop in farmland and\ncrushing it in sugar mill is called \u2018Cut to Crush\u2019 delay. The ideal acceptable\nCut to Crush delay is 24 hours and further delay reduces the crop\u2019s sugar\ncontent at faster rate and thereby reducing the quantity of sugar produced in\nthe sugar mill. Based on our analysis\nthe cut to crush delay was more than 48 hours. Sugarcane farmers receive\npayments from sugar mills on basis of weight of the sugarcane delivered. The\nreduction in weight of sugarcane reduces the amount of money that is paid to\nfarmers. Additionally, mills keep the payments to farmers in due for more than\n2 years as they enjoy monopoly in this economy. The overall monetary value lost\nbecause of cut to crush delay is huge. Generally, in India, 115 kgs of sugar is\nextracted from one tonne of sugarcane and researchers have estimated that there\nis loss of 5-10 kgs of sugar per tonne of sugarcane because of cut to crush\ndelay and loss is higher during summer. India being the second largest producer\nof Sugar, the issue of cut to crush delay is widely present and our team was\nfocused to find a feasible supply chain solution to reduce the cut to crush\ndelay so that sugarcanes are delivered to sugar mill within less time and\ncrushed immediately. <\/p>\n\n\n\n We chose the\nIndian states of Uttar Pradesh, Maharashtra and Tamil Nadu as our primary\nground of research to understand the existing supply chain functionalities. Our\nprimary research involved telephonic interviews and surveys with farmers and\nfield experts especially who are in social media, analysing published papers,\nstudying articles related to industry and following the current news related to\nindustry. From our primary research, we found that the Sugarcane crop goes\nthrough 4 important stages in the entire supply chain HARVESTING ->\nTRANSPORTATION -> WEIGHING -> CRUSHING<\/strong>. The time delay in each stage\nis combined to cause Cut to Crush delay and each stage has its own one or many\nmicro components which are responsible for causing delay. Below are the issues\nwe found during our research.<\/p>\n\n\n\n Through our secondary research we identified\nthat there is no scarcity of resources for better functioning of supply chain\nbut the resources available are not properly utilized and managed. we\nidentified that the main reason which is causing the issues in each stage is\nthe improper collaboration and poor communication between various stakeholders\nlike farmers, mill management and other third-party service providers involved\nin the supply chain and then the poor management when it comes to functioning\nof sugar mills. <\/p>\n\n\n\n Hence, as a part\nof solution to reduce cut to crush delay, we designed and proposed a\ndevelopment of a software application called \u2018Industry Resource Planning\u2019\n(term coined by us) <\/strong>in short it is IRP<\/strong>. IRP will be an integrated\ndigital platform and it will be an advanced level of \u2018Enterprise Resource\nPlanning\u2019 software which is in generally practise. All the stakeholder, service\nproviders involved in the supply chain will be made to register in the digital\nplatform and platform will be designed in such a way that it will bring\ntransparency in the system and increase collaboration between stakeholders by\nestablishing proper communication between them and also provide platform to\nschedule activities like sugarcane delivery to mills. All necessary services\nthat each stakeholder wants to avail will be made readily available through IRP\nand make them aware of the status. All movements in the supply chain will be\nmonitored by IRP to identify where are things getting halted and who is\nresponsible for it and necessary steps will be initiated to quickly resume the\nflow. IRP will also bring mills operation under radar and will monitor their\noperations like sugarcane procurement and their payments to farmers to stop\nthem from taking any advantage of monopoly. Apart from these, IRP will help to capture\nhuge data which can be used by Government authorities to take strategic and\npolicy decisions for the welfare of farmers and also to bring improvements in\nthe industry.<\/p>\n\n\n\n We proposed that\nGovernment must take steps to build the IT infrastructure of this solution as\nthe number of people involved in the industry are high. Low digital literacy\namong uneducated farmers can be a hurdle for proper implementation and necessary\nstep have to be taken to address the issue. Successful implementation of this\nsolution will have a positive impact on the farmers income and sugar and\nethanol production of the country. As India is moving towards digitalization,\nthis project will increase the digital literacy of farmers and will encourage\nthem to adopt new and emerging technologies to their benefit. <\/p>\n","protected":false},"excerpt":{"rendered":" 22.01.2021 Today starts a blog series including 5 articles presenting the results of the science competition organised by the Global Business School Network and the HUMLOG Institute at Hanken School […]<\/a><\/p>\n","protected":false},"author":13,"featured_media":356,"comment_status":"closed","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,44],"tags":[],"class_list":["post-353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-events","category-studies"],"_links":{"self":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts\/353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/comments?post=353"}],"version-history":[{"count":4,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts\/353\/revisions"}],"predecessor-version":[{"id":358,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/posts\/353\/revisions\/358"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/media\/356"}],"wp:attachment":[{"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/media?parent=353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/categories?post=353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.hanken.fi\/humlog\/wp-json\/wp\/v2\/tags?post=353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Stages<\/strong><\/td> Issues<\/strong><\/td><\/tr> Harvesting<\/td> \u2022 Poor labour management and lack of machinery results in longer harvest time
\u2022 Non-adherence to pre-booked crushing time slot<\/td><\/tr>Transportation<\/td> \u2022 Non-availability of timely logistic services from mill or third-party service providers<\/td><\/tr> Weighing<\/td> \u2022 Huge queue of vehicles outside mill to weigh the sugarcane
\u2022 Poor cane delivery scheduling and communication between farmers and mills<\/td><\/tr>Crushing<\/td> \u2022 Poor maintenance and operations management by mill
\u2022 Unexpected Shutdowns and delay in cane procurement
\u2022 Mills do not operate with optimum capacity<\/td><\/tr><\/tbody><\/table>\n\n\n\n