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Food Security Supply Chain Design

Opportunity for Eradicating Hunger & Malnutrition in India

N. Viswanadham
Indian Institute of Science
Bangalore- 560012
[email protected]

Agenda
Global Supply Chain Excellence

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What is food security?

Current Efforts by Various Stake Holders: Governments,
NGOs, Hawkers, etc
Food Security Indices by the World Organizations
Our Approach
Our Diagnosis

Food Security Supply Chain Design

The Business Processes
Governance of FSSCN
Supply Chain Network Coordination
The Supply Chain Risks

Conclusion
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What Is Food Security?

The World Food Summit of 1996 defined food
security as existing when all people at all times
have access to sufficient, safe, nutritious food to
maintain a healthy and active life.
l Thus food security implies both physical and
economic access to food that meets their dietary
needs, nutritional requirements and food
preferences.
l Nutritious food providers have three functions:
Making it Available at Affordable prices and
creating Awareness to the consumers
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Current Efforts by Various Stake

Holders: Governments, NGOs, etc

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Government Programs for Food & Nutrition Security

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Major Programs to Augment Availability of Food

National Agricultural Development Program
Accelerated Irrigation Benefit Program
Fertilizer Subsidy
Bank loans, Free Electricity

Major Programs to Improve Economic Access to Food

Public Distribution System
Mahatma Gandhi National Rural Employment Guarantee Scheme
National Food Security Bill

Major Programs & Partnerships to Improve Nutrition Security

Mid Day Meal Scheme
Integrated Child Development Scheme (ICDS)
Annapurna Scheme (Ministry of Rural Development) for senior citizens
The Nutritional Program for Adolescent Girls
Emergency feeding program ( in eight districts in Orissa)
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Performance of the Food Security Schemes has

been far below the Mandates.
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The food security programs as envisioned are too narrow & equate
food security with grain security
These have become classic examples of corruption, diversion,
adulteration .
Food Adulteration(Milk, Fruits, Fish) with chemicals such as
calcium carbide getting deadlier by the day
The cost of implementation of the PDS program is high (6 rupees
for each rupee of rations delivered and 4 rupees for each litre of
kerosene)
Suggestions for improvement include
Replacing ration cards with food coupons or UID.
Using IT for monitoring and visibility.

Neither of them can stop corruption or improve the performance

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Efforts by Foundations
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Naandi runs several automated central Midday Meal Kitchens

across the country which prepare and deliver high-nutrition
noon meals (in consultation with National Institute of
Nutrition) to 8 lakh underprivileged children every day
including in tribal areas .
Akshaya Patra reaches out to 13lakh children in more than
8,200 schools in 8 states of India, providing them with
freshly cooked meal packed in stainless steel containers.

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Cuisines by the Sidewalks

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http://openthemagazine.com/article/business/cuisines-by-the-sidewalks

Hawkers in several major cities, (Mumbai 250 000, Delhi

200,000 ,Calcutta 150,000 ,Ahmadabad 100,000) serve the
food needs of millions of urban poor. (considered illegal
by municipalities)
Kolkatas 150,000 street food vendors cater to nearly 10
million people with 230 types of food.
Vendors wear aprons, gloves and face masks; cover their heads,

serve food in thermocol or bio-degradable plates, serve bottled

water and prepare food as per a manual published by the AIIHPH.
Initiating a micro-credit scheme, from banks, for purchase kiosks

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Food Security Indices by the World

Organizations
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Global Hunger Index (GHI) Published by IFPRI

In 2011, India ranks 67 of the 81 countries. The GHI is composed of
three equally weighted indicators - proportion of the population that is
undernourished, proportion of children who are underweight and underfive child mortality

Human Development Index(HDI)

India ranks a low 134 among 187 countries HDI is a comparative
measure of life expectancy, literacy, education and standards of living.

Malnutrition:Integrated Child Development Services

47% children below the age of three years are malnourished
(underweight). Also, 47% of Indian children under five are categorized
as moderately or severely malnourished.
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Our Approach

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Our Diagnosis
Food security need to be properly defined
and the delivery processes need to be well
designed and their executions monitored.
l Need articulated Changes in Consumption Patterns
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In both urban and rural areas % cereals in food is declining & high value products

such as fruits, vegetables, meat, dairy products, and fish is on the rise

Not treated as a supply chain problem. Recent advances in

technologies and in the food vertical: Logistics, Raise of
Supermarkets, Food Processing & Packaging, Wireless,
Traceability using RFID are ignored.
Coordination and Execution are absent

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Food Security Supply Chain Design

Making Nutritious Food Available at Affordable Rates

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Food Security Solution: To Serve 100M Urban Poor

Vocational Training

Processed Food
Products

Distribution
Center

Households

PDS

Distribution
Center

Mid Day Meals

Meat & Diary

Products

Distribution
Center

Kitchen

Hawkers
Kitchen

IT Backbone on Cloud

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Food security Supply Chain Strategy

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Orchestration of the food supply chain in urban areas as

Food Value chains to Hawkers, Schools, Outlets which are
ISO certified
The strategic partners include
Warehouses and distribution centers, Kitchens
Hawkers
Governments & School managements
Vans to carry food packets to schools, hawkers
Waste disposal
IT monitoring and call centers
Micro-finance companies
Vocational Training Institutes
Hawker vehicle manufacturers
Electrical equipment innovators: Solar , gas enabled heaters/

refrigerators, Automated Kitchens

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The Business Processes

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Creating awareness on Food, nutrition and health relations

Preparation of the menu by crowd sourcing
Procure the food material from suppliers (Government or
private parties), the processed food manufactures and meat
and milk vendors and store in the distribution center.
Certification of quality at each stage in the chain
Transfer the materials from the distribution center to the
kitchens on a daily basis or as required or as ordered.
The delivery of the food packets from the kitchens to the
hawkers, schools and other outlets using delivery vans.
Return of unsold food for disposal
Financial supply chain
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Execution using Smart Technologies

l Streamlined

execution of food security chain

for urban poor is through Smart business
network that uses GPS, RFID, UID, Sensor
networks, mobile, call centers etc.
l Brainstorming and discussions with
stakeholders would certainly lead to an
Executable Food security system to replace
the currently corruption ridden inefficient
system

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Food Security Ecosystem

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Regula7ons APMC act,
Min Support Price, Ra7on
cards

Municipality & Ra7on

shops

Quality Control &

Hygiene

Ci7zen Groups,
NGOs

Food Courts, Schools

Cloud :Data records and
Audit

Hawker carts with GPS and

Sensor N etworks

Voca7onal Training
through NREGS

PDS, Meat , Dairy

Fruits and Vegetables

Water, Energy & Power

Resources

Food Security
Ecosystem

Resources

Communica7on and
Informa7on Technology

Farmers & Land

Resources

Service Delivery Technologies

& Mechanisms

Logis7cs and
Transporta7on

Ins7tu7ons

Kitchens

Food processing Industry

& Dairy Clusters

Human Resources
Financial Resources:
Govt., Banks, Micro
Finance
Hawker Push Carts
Manufacturing,
Kitchen Design
Food Research Labs

Service Chains

Distribu7on
Centers

Hawkers
Schools
Food courts

Consumer

Ecosystem Enabling Processes

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Changing the delivery process to supplying nutritious food

rather than grains
Legalizing current stake holders such as hawkers and other private

food suppliers
Obtaining grains through open markets
Identification using biometric schemes
Crowd sourcing the menu from the customers
Certification of quality at each stage in the chain
Vocational training for all business participants
Micro Finance for small businesses such as hawkers

Designing as cooperative or orchestrated smart business

network of public private partners in place of government
supported welfare scheme managed by bureaucrats .
Monitoring and control by cloud based control room that has
data collection, mining and fraud detection capabilities
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Performance
l Quality
l Sales
l Customer

satisfaction
l Stake holder happiness

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Nutritious Food Manufacture & Delivery

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Design of nutritious food for children, pregnant women and

working young population is a well researched topic.
Manufacturing processed food as per these norms can be
easily done following the practices in other countries.
The scale of 600 million customers provides incentive for
food manufacturing companies for developing a highly agile
adaptive nutritious food supply chain to produce the products
at affordable prices and make them accessible.

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Supply Chain Costs

Material Costs in
Distribution Centers
Total Cost of
Food Processing

Other stake holder

Margins

Shipping Cost

Kitchen
costs

Hawkers
margins

Total Transport
Costs
Product Cost
including Tax
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Total
Cost

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Governance of FSSCN
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The management challenge in a FSSCN is the coordination of

its activities sourcing, food production, distribution and
variety of services such as vocational training, transport, ICT
Also the following are the daily activities
Selection of Menu for the kitchens and suppliers; what will they

supply how it is used in cooking(e.g., product tastes and quality); the

production and delivery schedules (how much to produce and when)
of the kitchens , capacity and upgradation of kitchen equipment, new
recipes.
Special foods for children, mothers and pregnant women and delivery
in their location
Quality assurance across the chain and its maintenance
Mitigation of adulteration, pilfering etc.

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Governance of Food Security System

Industry CEOs/
Technology
Ocers

Government
Advisory Board

Restaurant
Chains

City Governance
Quality Control
Board

Execu7ve
Director

Stakeholders

Monitoring &
Execu7on
Call Center

Business
Development

Data

Manager
Services

Manager
Sourcing
Manager
Food
Prepara7on
PDS

Diary

Manager
Distribu7on
ICT

Meat

Vegetables
and Fruits

Warehouses

Hawkers

School

Kitchens
Food
Processing

Food
Courts

Transporta
7on

Waste
Manag
ement

Hygiene,
Quality

Voca7onal
Training

Global Supply Chain Excellence

Supply Chain Network Coordination

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The network consists of half million stake holders in big

cities. Majority of them are hawkers who are small
entrepreneurs.
The asset intensive part of the network are the Kitchens and
the Distribution Centers.
The Distribution centers can be a shared service with the big
retailers but the Kitchens have asset specificity.
The Governance model can be an orchestrator type i.e. the
governance is managed by a third party such as an NGO or
One of the lead players such as the Kitchen owners can
manage the supply chain.

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Areas of Skill Training

Warehouse Distribution and retail staff
Processed Food outlets staff and managers
l Cooks, chefs and managers of Kitchens
l Hawkers
l Call centers IT workers for monitoring
l Transporters
l Trained managers for Execution
l Food Inspection and Hygiene
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Total numbers needing training may add up

to several lakhs in big cities

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The Supply Chain Risks

Political/social pressures for permissions

Creating nutrition awareness among consumers
Compromise on quality and hygiene
Misunderstanding by the hawkers
Resistance by other organized restaurant and
Kirana shop owners
IT/ technology adoption barriers
Waste disposal & Recycling

Talent needed to convince all the stakeholders

including government
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Is there for Proof of Concept through a

Pilot Project ?
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We put together all the best practices from various earlier

implementations and organized them to create a high
impact food security solution that generates millions of jobs.
Our concept is already implemented in parts very
successfully by NGOs Naandi, Akshaya Patra for the mid
day meal program and by more than one Million Hawkers
cater food to millions of people in various cities .

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In Summary
Global Supply Chain Excellence

We presented a well Orchestrated food security supply

chain network design for urban poor as a resilient
network of alliances by streamlining and enhancing the
food value chains to Hawkers, Schools, and other Food
outlets, while ensuring certification of the quality of the
food at each stage in the chain and also providing
opportunities for vocational training and micro
financing to all the stake holders.
Supply Chain Coordination and Governance are of
fundamental importance to attain the objectives of the
food security SCN.

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Conclusions
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Our suggestion is streamlined execution of food security

chain for urban poor which is a business network made
smart using GPS, RFID, UID, Sensor networks, mobile,
call centers etc.
For Rural poor district-wise distribution centers and
kitchen with MacDonald's type outlets or Food courts
may be a good solution.
Warehouse locations should be based on population
statistics and location specific needs
Brainstorming and discussions with stakeholders would
certainly lead to an Executable Food security system to
replace the currently corruption ridden inefficient system

Ecosystem Aware
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Finally
l Apply

same thinking in

Health care
Education
Hospitality & Tourism

N.Viswanadham