Major problems identified

How SCM could solve the problem

Figure 13

Post-production- loss factors

Poor milk handling practices at collection points: lack of appropriate facility and mismanagement.

Lack of immediate milk acceptors/waiting time at collection points.

Lack of cooling systems both at home, at collection points, and during transport.

Poor means of transportation.

Inappropriate milk carrying equipment- plastic, narrow opening difficult to clean inside.

Poor storage facilities.

Poor communication with other partners in the chain.

SCM could solve the facility related logistics problems through enhancing collective investments in logistics tools and infrastructure and enabling coordinated and integrated use of existing facilities.

SCM could also alleviate the milk handling practices at collection centers through awareness creations. With effective SCM system, qualified and responsible operators across the whole chain could be achieved.

SCM could also improve the communication among chain actors through effective relationships among chain actors. Effective and efficient sharing of information is integral to SCM system.

Figures 2-4


Low milk production per cow per day.

Lack of access to improved cow breeds.

Lack of access to financial services.

The farmers could get support from downstream chain actors in terms of better access to the improved cow breed and financial services.

Figures 5-9

Marketing and relationships

Relationships characterized by individualistic and opportunistic behavior.

Focus on own profit or lack system thinking among the chain actors.

No strong trust based relationships among the chain actors and no ultimate customer conceptualization.

Through SCM approach the relationships could be improved where all the chain actors focus on satisfying ultimate customers and improving overall performance of the whole chain.

SCM creates system thinking where chain actors develop win-win partnerships and an attitude of winning the competition all together as a chain, not as individual business.