A new e-auction is to be introduced in the tea world to streamline the supply chain of teas, it has been revealed.
According to an announcement made at the Calcutta Tea Traders’ Association’s (CTTA) annual general meeting, the tea supply chain in India is ‘’colonial’’ and can be better served through e-auctions.
In a move that could provide valuable lessons for UK companies with supply chains, tea growers in India have seen that only around 40 per cent of the consumer price came back to the growers, compared to up to 85 per cent of milk prices.
As a result, it is hoped that an e-auction will strip a number of the five to six layers present in the current chain, and therefore increase sales due to lower costs.
CTTA chairman Azem Monem said that he hoped the software would be ready by September 2008, with training to begin by October this year.
Already in the country, Coal India Ltd has begun e-auctioning its coal in order to pass savings on to consumers, in an attempt to drive up coal usage.
Goods providers in the UK could benefit by outsourcing some aspects of their supply chain, or by introducing such ideas as online schemes in order to save time and money in delivering their products.
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