The need for higher level federations and the potential for such institutional mechanisms in leveraging on economies of scale to enhance the business viability of activity groups have been evident from the early stages of SAF. Major business processes are elevated to higher levels to the federations of activity groups for leveraging on economies of scale. Initially three regional federations have been formed under the common title ‘SAF Activity Groups’ Apex Federation – SAAF’. These are entities registered under the Charitable Societies Act. At present, it has been proposed to merge three federations into a single entity with headquarters in Njarakkal and regional offices in Kozhikkode and Alappad.
SAAF has already started procuring raw materials and distributing to the various groups. This offers tremendous scope for improving the viability of the groups as well as in enhancing business margins.
The SAF activity groups’ apex federation (SAAF) is being strengthened as a management institution focusing on procurement and marketing for the activity groups covering the entire state. The federation is being made ready to take forward the current activities in the Garments and Tailoring category and also extend similar interventions in other categories. This requires developing the leadership as well as a team of professionals specialising in categories at the federation level. Establishing reliable supplier relationships and specific tenure based contracts with producer companies in other states are being explored.