Supply Chain Project

SIC | INNOVATE | RURAL

Company name

Executive summary

The pilot study explores digital transformation in rural FMCG supply chains in Telangana, India. By introducing vending machines, doorstep delivery, and chatbot-assisted ordering, it improves accessibility, reduces costs, and creates employment, especially for women. Findings show increased convenience, digital literacy, and social empowerment, demonstrating technology’s potential to bridge supply chain gaps and uplift rural communities.

Problem statement

Despite contributing 50% to the FMCG sector, rural areas in India face significant challenges in accessibility, technological adoption, inclusive strategies to address geographic isolation, digital literacy gaps, and evolving consumer needs.

Problem statement

1. Difficult access to nearest grocery stores due to remote location of villages
2. Counterfeit products sold in villages
3. Local stores in villages selling more than Maximum Retail Price (MRP)
4. Limited availability of international/regional brands

Goals and Objectives

Assess Digital Adoption – Evaluate how basic technical and digital knowledge influences the comfort and willingness of rural villagers to adopt new technologies
Analyze Social Impact – Identify and measure the social changes brought about by technological interventions in rural FMCG supply chains
Enhance Skill Development – Facilitate digital literacy and create new career opportunities for local villagers through technology-driven initiatives

Our role in execution

1. Understand the problems and products/services that are currently not available in rural areas and are procured/serviced by the agencies in urban areas

2. Carry out technological interventions through vending machines and doorstep delivery service in remote villages

“

I was able to manage vending machines and learn new skills alongside my regular duties of taking care of buffaloes and working in the paddy field. This additional responsibility provided me with a source of extra income.”

Ganesh, Microentrepreneur, Kandi Thanda

“

Despite having small kids to take care of, I managed vending machines and aggregated orders from villagers for doorstep delivery in a flexible manner. This allowed me to meet my responsibilities while providing for my family.”

Nagalakshmi , Microentrepreneur, Antharam

Learnings & Failures

1. Users appreciate the 24/7 accessibility and time saved for local and market trips

2. Preference of the kiosk over their phone as an interface due to higher visibility and accessibility.

3. Addressing anxiety about online transactions can boost adoption rates

4. Better guidance and simplified interfaces or technology can improve navigation for older users (40+).

5. Adaptability: 92% of villagers are willing to continue using vending machines.

Explore More Insights

Access the full report, related blogs, and press releases to dive deeper into the impact and execution of this project.

Research paper titled “Digital Transformation in Rural FMCG Supply Chains and Technology introduction: A Case Study of Remote villages in Telangana state, India” presented in ICORD 2025 Read