Why seed companies should adopt better supply chain strategy ?

By Hari Prasad Jam Jam, CEO of AgriTechno Entrepreneur

“Behind every great leader, there was an even greater logistician.” ~ M. Cox

The seed is an important input in the production of the crop. Diverse agro-climatic changes in India can disrupt seed availability and affect the crop quality which results in reduced agricultural productivity in some areas. Long-distance transportation will involve in the distribution of seeds to affected areas. Delivering seeds to storage centers and from storage center to distribution points to reach end-users on time requires a lot of money and involves loss of seed viability. In order to reduce the transportation cost, Seed Companies are advised to maintain seed distribution centers for meeting demand varieties at those specific locations. To build the most efficient distribution systems in different locations requires a lot of capital investment, time and expenditure. For surviving in this competitive market businesses were willingly looking for an alternative to meet all their needs with an increasing demand to be innovating, and embracing new technologies. So, the term outsourcing became the new buzzword in the business industry across the globe. It played a very important role in the growth of the business and reduced the burden of non-core activities.

Considering the above-mentioned phenomenon we examined the present status of the Indian seed industry and possibilities of high volume seed production to adjust high-value crops and to formulate the strategy for sustaining the seed industry. It is well known that the supply chain is an integral part of businesses and plays a crucial role in company success and customer satisfaction.

Feedback from farmers’ organizations:

According to Access to Seeds Index 2019 Report, there is an inadequate supply of seeds by the formal system in index countries, certified seeds are supplied by companies and government bodies. In many countries, the quantities available do not meet farmer demand. In addition, seeds of popular varieties are not available at the right time or place during the planting season. A lack of harmonized supply chain to facilitate the movement of seeds within and between countries further hampers adequate supply. Farmers are therefore calling upon companies to increase the supply of certified quality seeds in index countries.

How better supply chain can benefit you:

• Boost Customer Service
• Delivery of goods in the right quantity, at right place and the right time
• Improve Financial Position
• Lower Costs & Higher Benefits
• Offers Flexible Pricing Options
• Real-Time Inventory Management
• Reduce Operating Costs
• Reduces time required to reach products to end-users
• Reduces logistics burden
• Reduction In Capital Expenditure
• The smooth operation of production: The producers need not make the management of distribution centers and warehouse. The producers can take care in the production, the timely payment by intermediaries and financial help
• Wider choice of channel alternatives during drastic environmental factors

Seed marketing in developing countries is affected by the following challenges:

• Damage of seed due to the insecurity of the store
• Fake seeds in the market
• Insect /pests and diseases
• Lack of intermediaries and minimal distribution beyond commercial centers.
• Long distance to seed retailers
• Poor order fill and on-time delivery performance
• Processing and storage capacity
• Transport and handling into the processing plant
• Unpredictable and unattractive prices for grains (Mostly after harvest immediately)