Supply chain management

1. Jaipur Rugs
• Founder N.K Chaudhary
• India's largest manufacturer and exporter of hand knotted
rugs founded in 1978.
• Produces an exclusive product range of rugs, pillows and
poufs
• Carry forward the rich heritage of India to more than 40
countries in the world

2. Jaipur Rugs Network
Jaipur Rugs operates with the help of a complex web of human
resources:
Approximately 300 direct, full time employees:
A. 7 Family members
B. 226 Headquarters employees
C. 70 Regional branch office staff, including 40 area commanders
Approximately 40,000 contractors (indirect employees):
D. 28,000 Weavers
E. 12,000 Other laborers involved in the manufacturing process

3. THE ECOSYSTEM OF JAIPUR RUGS
JR
company
JR
incorporation
JR
foundation
Bhoomika
Wools

4. Jaipur Rugs, USA
Back office
Jaipur Rugs
Foundation, Jaipur
 Weaver’s Welfare
 Gross-Root
Mobilization
 Production capacity
building
Branch Offices
 Receiving and issuing
 Raw materials &
carpet
 Weaving supervision
HRD, Delhi
 Product display &
merchandising
 Buyer Interaction
Bhoomika Wools,
Bikaner
 Raw wool procurement
through auctions
 Inspection & storage of raw
wool
 Wool carding (Outsourced)
 Yarn Spinning (Outsourced)
Jaipur Rugs
HQ, Jaipur
 Procurement & Storage of Raw
material
 Design & development
 Production planning and control
 Logistics & supply chain Management
 Information Management
 Quality Assurance
 Sales & marketing for Row
Jaipur Rugs, USA
 Customer Relationship
management
 Business Development
 Market Intelligence
 Order fulfillment
 Inventory
management
 Order management
 Snipping & invoices
 Inventory
management
 Online Sales

5. Manufacturing Network
• Production units are in Rajasthan, Gujarat, Uttar Pradesh, and Bihar
• Annual production of approximately 5 thousand million square feet of
Rugs
• Connecting artisans to global Market through its global supply chain
management.

6. Supply Chain of Jaipur Rugs
Supply chain of Jaipur rugs is consists of four pats
• Raw material acquisition and spinning
• Dying, production, planning, designing and production
• weaving
• Sales and marketing retailing

8. Wool into HankSorting Raw Wool Hand Carding Wool into Hank
Cleaning and Brush Used for Hand Spinning Raw

9. Distribution Network
• At present Jaipur rugs has businesses in more than 40 countries and
touched a turnover of over 14 million $ in 2008-09.
• USA is the major market of rugs where about 65% of the sales are
done.
• Followed by Turkey, Canada, Mexico, Italy,
Germany, Australia, Russia, Spain, Romania etc.

10. Jaipur Rugs Strategies
Jaipur rugs company used pull strategy because it
take order from customer then perform further
steps to complete orders.

11. Questions
1. How can small and medium scale industries can
deliver better customer value through supply chain
management & improve the living standards of
society in developing countries?

12. Jaipur rugs co. is the best example of implementation of cost effective supply
chain management in developing countries. But in developed countries like
USA that company is using responsive strategy to respond the market
demand.
Improve living stranded
• Promotion of Leadership and Entrepreneurship
• Training
• Labor law Practices
Competitive wages
Access to healthcare and education.

13. 2.How can the involvement of middleman be
minimized ?
Middleman can be minimized or removed to give
more income to the weaver ,through direct
relationship with weaver .