INTEGRATING URBAN AND RURAL RETAIL SUPPLY CHAIN THROUGH ASSERTIVE SOURCING LEAGUE IN INDIA

Baba Gnanakumar¹, Yeshwanth Kumar²*
¹ Prof. Dr, Sri Krishna Arts and Science College, India, gnanakumar12000@yahoo.com
² Mr, Sri Krishna Arts and Science College, India, yeshwanthkumardv15bco651@skasc.ac.in
*Corresponding author

Abstract
This is a case analysis of the Assertive Sourcing League (ASL) followed by the urban retailers in Tamilnadu to source the inventories directly from rural farms. The assertive sourcing league has been established by the three heterogeneous partners in the retail supply chain network such as, urban retailers, rural farm-executives, and fleet operators (passenger cabs). The league partners fix the revenue sharing model among them by considering the demand and supply. Since fleet operators are playing the role of consolidation, they are maintaining the data base of the farm executives and other shippers. Fleet operators also established multi-shipper collaboration with other shippers. Group of farmers also established integrated assortment cluster that enable them to bring different commodities at a common place on regular intervals so as to enable the smooth supply of goods on a continuous basis. The aim of the case is to dissect the value proposition of the ASL. The findings contented that ASL consolidates the inventory from different farm owners; retaliates marshalling of freight movements through passenger cabs, enables replenishing the inventory at the right time and fixing competitive service value to have a smooth flow of the inventory from farm to market. The research concludes that inconsistent lead time and high inventory cost reverberates the retailers to move towards the ASL network. Standardised traditional model may not apply to transporting the goods in the retail supply chain. It is imperative that the retailers have to understand the discriminating variables that divide the urban and rural retailing pattern to minimize the transport cost and maximize the service benefits.

Keywords: ASL, Consolidation, Marshalling of goods