Supplier resilience equals supply chain resilience
From a webinar by Business Fights Poverty
Mars Inc., and their partner Tanager provide a case study for large organisations to partner with smaller ones, in this case, the food giant Mars and mint farmers in India. This partnership is driving positive impact for people and planet - creating supply chain resilience, farmer income and empowerment of women. Here are some insights:
The Mars-Tanager mint partnership in India illustrates the critical link between supply chain resilience and farmer resilience. By focusing on trust-building, long-term partnerships, and farmer-centric interventions, Mars has not only secured its supply chain for mint but also significantly improved farmer incomes. The partnership demonstrates how diversified income streams, gender inclusion and applied agricultural research can create a more resilient and sustainable agricultural sector. There's been a 156% increase in income for 25,000 mint farmers, 5,226 women have been supported through Self-Help Groups and a 20% reduction in water usage. What are the learnings?
1. Focus on farmers' resilience to achieve supply chain resilience.
Supply chain resilience depends upon the well-being and financial stability of farmers. Over a decade of collaboration, the two organisations worked with Indian mint farmers to improve yields and productivity. This not only secured Mars’ supply chain for gum production but also increased farmer incomes. Income diversification also plays a key role, as mint is a seasonal crop grown for only three months a year. To secure long-term resilience, farmers also grow crops like potatoes, mustard seeds and rice to stabilize their annual income.
2. Build trust to make partnerships work for the long term.
Trust between corporations and farming communities is built over time. The Mars- Tanager partnership, for example, spans nearly ten years, during which they have conducted ten harvests together. This consistent presence has built trust with mint farmers, allowing for deeper collaborations, such as community empowerment initiatives and expanding the partnership into income diversification efforts.
3. Learn and adapt constantly.
The “Lab-to-Land” approach taken in the Mars-Tanager mint partnership in India involved taking agricultural research from the lab and testing it in real farming environments. Through applied research, Mars and Tanager developed practices that increased mint productivity and farmer income. This methodology helped mint farmers adopt technologies and innovations that were tested and tailored to local conditions, allowing for more effective and scalable interventions.
4. Find out where the women are and what role they play in the supply chain.
Gender analysis conducted within the partnership highlighted the critical role of women in mint farming. Programmes like Village Savings and Loan Associations (VSLAs) helped improve women’s mobility and decision-making power within their households. The mint programme not only boosted economic resilience but also empowered women to take on more active roles in their communities. The partnership carefully designed its agricultural interventions through feedback from farmers, improving adoption rates and ensuring long-term success without overburdening smallholder farmers.
5. Replication at scale remains a challenge.
While the Mars-Tanager mint partnership has been successful on a smaller scale, replication across wider regions is a challenge. Mint farmers work with multiple buyers and crops, each with different priorities. Expanding the model will require aligning interests across these diverse stakeholders. This complexity makes it difficult to maintain the same level of trust and collaboration as seen in localised efforts, but is crucial to achieve more transformational change.
Watch a video of the 25 min session here.
Something to share with procurement managers as a more holistic way to foster any supply chain, be it offshore or in-country?
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From a webinar by Business Fights Poverty, 18/12/2024