A strategic analysis of tea leaves supply chain before manufacturing – a case in Assam

Abstract

PurposeThere exists insufficient literature on classification and taxonomy of tea leaves supply chain (TLSC), so the purpose of this paper is to study the existing TLSCs and classify them accordingly. Apart from this, the paper also focuses on identification of key decisions issues in the supply chains (SC) and developing a TLSC decision framework for the state of Assam in India.Design/methodology/approachThe paper is based on a two-year detailed study on TLSC in Assam which encompasses 22 Tea Estates, 41 Small Tea Gardens (STGs) and a Research Institute (Tocklai Tea Research Institute). Secondary data were collected from relevant websites of various government organizations of India, company’s websites, annual reports, official statements from the companies, tea market reports, annual reports of the Indian Tea Association, the Tea Board of India, Tea Research Institute and published reports, etc.FindingsThe “point of origin” of TLSC is a tea garden, “point of consumption” is considered as a tea factory and green tea leaves (GTLs) forms the basic raw material. This SC includes mainly three players: Tea leaves growers, manufacturers of made tea and tea leaves agents. This study identifies the three types of TLSCs existing in Assam: TLSC1, TLSC2 and TLSC3. Among them, only TLSC1 is both responsive as well as an efficient chain, while the rest are only responsive chains. Later two SCs can be made efficient with the proposed TLSC4.Research limitations/implicationsThere is an insufficient literature on classification and taxonomy of TLSC, therefore the study (considerably the classification and taxonomy of TLSC) was developed from the primary data which were collected from the 22 Tea Estates and 41 STGs of four districts of Assam, because of limited time (two years). The study should have involved more tea estates and small tea gardens for better classification and taxonomy.Practical implicationsThe proposed model suggests that small tea growers may create a co-operative whereby smaller tea gardens (STGs) (members of the co-operative) unite to act as a single large garden, set up their own co-operative factory and recruit permanent tea plucking laborers. This up-gradation of TLSC2 and TLSC3 to TLSC4 may enable a group of STGs to work in a manner similar to a Tea Estate.Originality/valueTo the best of authors’ knowledge this is one of the first studies to classify the TLSC in Assam.