Supply Chain Development Under Conflict Conditions: Case of Nepal

This chapter examines a supply chain development under conflict conditions and lays out the management strategy and tactics of an integrated set of Nepalese firms that has emerged as the market leader. The supply chain problems of a decentralised and scattered activity of poultry-keeping as it moves from a form of backyard farming to an industrialised factory farming form in a highly constrained contextual setting have been discussed. A comprehensive longitudinal case study accompanying focused group discussions, on-the-site observations, and in-depth interviews with the executives found a sustainable model of the supply chain and lessons for its management. Thorough analysis of supply chain management practices along with routine activities of the executives of the Valley Group of companies and analysis of the business operational circumstances found that a very small firm selling 13 kg of broilers’ meat in 1981 became the market leader one and a half decades later, and continuously enjoyed this leader status even in the context of political insurgency, economic turmoil, and social unrest. Contextual factors like geography and demography, political movement and change, culture and customer tolerance, technology transfer and transport infrastructure are examined and overviewed. In addition, market and industry, quality standards and actors’ awareness as well as regulatory requirements, critical issues and challenges for managing supply chains in the Nepalese poultry industry are analysed. The longitudinal case study also looks at the application of the selected supply chain theories in the context of the developing country.