Logistics
Logistic operation is important for the procurement process from two aspect – while a good logistics helps adherence to the schedule and therefore smooth procurement operation, it also involves cost mainly driven by fuel cost depending on the distance between source and destination.
Distance from procurement centers to warehouse has a direct bearing on cost. As per procurement guidelines, payment process is different for the reimbursement of transport charges if the distance is less than 50 KMs or more than 50KMs.
MAHA FPC plays a significant role in logistics planning and mapping procurement centers to warehouse locations.
Warehouses (own/hired), Mapping to FPOs
As is illustrated in map, MSWC warehouses is spread over the different district of the Maharashtra State. MSWC Warehouses have their own godowns, hired godowns and PPP go downs. Out of total godowns under the MSWC, they have hired 126 godowns as shown in the map.
From region wise perspective, MSWC hired godowns are largely concentrate in two cluster: one expanding over Northern part of Maharashtra, the second stretching on the southern belt of Maharashtra. The north western region has a lesser number of godowns.
The above illustrated graph shows, the number of warehouses godowns under MSWC for the procurement under PSS scheme. The top five districts in which maximum number of MSWC Warehouse godowns present are Bhandara (106), Hingoli (79), Nanded (78), Latur (76) and Amravati (63).
Distance from Warehouse location <50 KM/ >50 KM
As mentioned previously, the payment mechanism is different if the distance from procurement centers to the warehouse is more or less than 50 KMs. In case the distance between procurement centers to the warehouse location is less than 50 KMs, the payment is made by NAFED. However, if the distance exceeds 50 KMs the excess amount if provided by state govt organization.
Above illustrated figure indicating the transport effort (KMs) to warehouse location by quantity procured.
The above illustrated graph shows, the number of warehouses godowns under MSWC for the procurement under PSS scheme. The top five districts in which maximum number of MSWC Warehouse godowns present are Bhandara (106), Hingoli (79), Nanded (78), Latur (76) and Amravati (63).
Distance from Warehouse location <50 KM/ >50 KM
As mentioned previously, the payment mechanism is different if the distance from procurement centers to the warehouse is more or less than 50 KMs. In case the distance between procurement centers to the warehouse location is less than 50 KMs, the payment is made by NAFED. However, if the distance exceeds 50 KMs the excess amount if provided by state govt organization.
Above illustrated figure indicating the transport effort (KMs) to warehouse location by quantity procured.
While most of the procured produce seem to have travelled lower than 50KMs from procurement centers to warehouse, the trend varies by districts. Ahmednagar, Amravati, Buldhana, Hingoli, Nagpur, Washim and Yavatmal needs attention in this case.
Sometimes, availability of spaces in the specific warehouse, availability of loading/unloading tools, availability of manual labor and traffic/road condition also cause the problem of longer distance from procurement center to the warehouses.
The way to improve on this is better mapping and scheduling for procurement among the procurement centers. This challenge becomes even bigger as MAHA FPC takes the procurement to the grassroot level (village level).
Warehouse Utilization Rate
Warehouse utilization can be interpreted in multiple ways – capacity vs used, utilization over time (procurement cycle), and quantity stored / procured in the season. As agriculture activities are seasonal in nature and harvesting time, transportation etc. depends on ground condition at the time of warehouse utilization. For the purpose of this report, the quantity procured in the procurement cycle and the monthly/weekly procurement of quantities.
In terms of quantity stored the top 25 warehouse are indicated as below. Latur and Nanded are the two districts that has higher number of warehouses that has done maximum procurement. This number also depends on number of warehouses in a particular district. Washim for example has warehouse with maximum procurement this year.
This is interesting to note that, although procurement season lasted for three months, most of the warehouses got utilized primarily for one month or two. This could also be because harvesting for a particular season happens simultaneously in the given districts/taluka/village.
This is a useful information to plan warehouse availability in different months of procurement. Mapping warehouse to procurement center can have an important angle of weekly/monthly availability in the procurement cycle.
