Implementation of Contract Farming & Value Stream Mapping:A Case Study

Supply chain management is the integration of activities takes place among a network of facilities that procure raw materials, transform them into intermediate goods and then final products and deliver it to the customers through a distribution system. Contract farming is a system for the production and supply of agricultural produce under forward contracts between producers/suppliers and buyers. Contract farming system can be regarded as backward integration of supply chain management which improves the supply chain procedure of raw material of agribusiness firm. Value stream mapping is an enterprise improvement tool to help in visualizing the entire production process, representing both material and information flow. Value stream mapping is a lean manufacturing technique which can be used to improve the supply chain process of the organization. Problem formulation is related to poor raw material supply procedure, increased cycle time in papad manufacturing and elimination of waste of both bhujia and papad manufacturing. Raw material supply procedure is improved by contract farming concept, reduction of cycle time and elimination of waste is achieved by value stream map.