The itc echoupal intiative harvard case study - Essay Example

To tap this opportunity, ITC-IBD has created an IT-enabled rural ‘channel’ called eChoupal to procure and process the soybeans in a productive way. So, using eChoupal, ITC-IBD wanted to streamline the input and output sides of the soybean supply chain, throughout its distribution network particularly in the Indian state of Madhya Pradesh. Through this process, they set an objective of giving the farmers access to quality inputs such as accurate weather report, correct information about sowing seeds, herbicides etc.

Then in the output side, ITC’s objective through e-Choupal is to remove the dominance and clogging of the middlemen, by using Information Technology. The main problem this initiative of ITC faced is to do with the rules of the State Government. That is, the state government had stipulated that all purchases or procurement of the soybeans from farmers should be done in Mandi, to protect the farmers from unscrupulous buyers. So, the ITC had to convince the Government about the potential of procurement outside the Mandi for the farmers as well as the rural economy.

Also, the need to provide the infrastructure to start eChoupal initiative is one of the problems faced by ITC. That is, with computer, telecommunication and Internet being in the infancy in India, with minimum spread, ITC had to built the whole structure independently with little backing from the Government. All these problems were overridden and the implementation was successful because of the full co-operation of the farmers, who were happy with this productive arrangement. Apart from the valuable information, they received for the effective cultivation, they also got profitable price for their soybeans.

The role played by the liaison person named Sanchalak contributed to eChoupal success as well. The transparency of the process also made it into a successful venture. Supply Chain Management is the lifeline of any business.