A Synopsis

on

Analytical study of Supply Chain Management practices adopted by Amul

Submitted in Partial fulfilment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA) in

OPERATIONS MANAGEMENT

SUBMITTED TO:

INSTITUTE OF MANAGEMENT & TECHNOLOGY

CENTRE DISTANCE LEARNING GHAZIABAD (U.P.), 2018

Name: Ashwani Kumar

Roll no: 17A1021508

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TITLE OF THE PROJECT

Analytical study of Supply Chain Management practices adopted by Amul

INTRODUCTION & OBJECTIVE OF THE STUDY

Introduction
In today‟s rapidly changing business environment, ever greater demands are being placed on
business
 to provide products and services quicker
 with greater added value
 to the correct location
 With no relevant inventory position.
Customers want more quality, design, innovation, choice, convenience and service, and they
want to spend less money, effort, time and risk. The supply chain of a company consists of
different departments, ranging from procurement of materials to customer service. Supply
Chain Management means transforming a company‟s "supply chain" into an optimally
efficient, customer-satisfying process, where the effectively of the whole supply chain is
more important than the affectivity of each individual department.

Objectives
1. To create respectability and credibility in the market and generate revenue for the
company.
2. To know the role and importance of supply chain and logistics towards customer
satisfaction.
3. To know the challenges in supply chain management
4. To build companies' reputation in the business world, which means more business to
the organization?
5. To study milk procurement process at Amul.

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STATEMENT OF THE PROBLEM

The main problems faced by the dairy processors in Gujarat were high competition among
the existing processors, short supply of raw materials, frequent price fluctuations, non-
availability of skilled labour and high taxes are the few major problems experienced by the
processing units.

REVIEW OF LITERATURE

Doing the survey, it was really an opportunity before me when I could convert my theoretical
knowledge into practical and of real world type. Fortunately, the company I got is a true
follower of the various principles of management and also one of the leading companies in
its segment of the industry. Amul is one of the renowned names in the Dairy sector of Food
Processing industry.

Especially food and financial crises year 2008 and 2009 has stimulate governments to put
more concentration on the value of food and nutrition security as essential components on
political stability and socioeconomic development. Dairy industry worldwide has been
changing due to more concerns over sustainability, consumers demand and greater efficiency
requirements. Substantially, major drivers of livestock products and high valued food items
are economic growth, population growth and urbanizations. Thus Asians diary demand has
been expanding rapidly. Consequently in advanced countries, demand of fresh and nutritious
food and shelf life has been significantly improved, hence food preservation is continuous
fight against microorganisms spoiling food or making it unsafe. It is suggested that dairy
sector continuously strive for efficiency due to the price and volume competition in various
countries. For this purpose there are five critical issues that might drive changes in dairy
sector over next 50 years such as (potential cost of greenhouse gasses, opportunities for
biotechnology driven breeding, development of specialized milk, continuous strive for
efficiency as commodity value of milk decreases and cost of animal disease eradication). As

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demand of milk has been dramatically increasing in the world so dairy sector should
continuously looks for innovative methodologies and solutions to address such trends and
improved value added through certain mechanisms. During the milk supply chain
management, storage of milk is very critical issue and challenge for producer and other trade
channel members. Researchers have been investigated that storage circumstance of raw milk
can affect the quality, yield, sensory values and shelf life derived dairy products. Particularly
milk storage during collection on farm side improvement means to extension of shelf life and
improve safety, these kinds of significant changes in the dairy production stages might occur
due to microbial growth. Currently innovative packaging concepts have been introduced due
to the customer‟s requirements for fresher and healthy foods as new retail and distribution
practices such as E-commerce, globalization and centralization. In the current era of
technological developments, active and intelligent packaging system has been appreciated in
developing and developed countries at very large scale and it is helpful to reduce wastage
cost and improve agricultural product supply chain integration among diverse located
suppliers and customers. Active packaging (AP) trend is useful to improve shelf life, food
safety, sensory values and simultaneously maintaining quality standard of packaged food.
Similarly intelligent packaging has been performing certain intelligent functions to facilitate
decision making about shelf life, food safety and quality through providing information and
highlighting potential problems. There are enormous kinds of disruption may occur in the
dairy supply chain. Privatization and restructuring of farms, processor, input suppliers and
retailing companies caused disruption in the exchange relationships in the dairy chain i,e long
payment delays or nonpayment of delivered dairy products. In case of such kind of market
behavior Albanian farmers have been decided to sell their milk directly in the urban market
and get cash payment. This was the number one business problem in the Central Europe in
mid 1990s which has been verified by researcher. Similarly shortage of high quality milk is
also another problem and demand for quality may come from public or private standards.
There is lacking of appropriate institutions in the dairy industry. Thus private contractual
initiatives have emerged to overcome problems that normally processors faced through
sourcing high quality supplies and though farms have been producing according to the
requirements. Particularly a strategy to address these kinds of issues to involved vertical
coordination in the dairy supply chain

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RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a research.
Research is an art of scientific investigation. In other word research is a scientific and
systematic search for pertinent information on a specific topic. The logic behind taking
research methodology into consideration is that one can have knowledge about the method
and procedure adopted for achievement of objective of the project.

Nature of Research:

The study is descriptive and analytical in nature.

Area of research: Gujarat

Sample size:
For the project 50 respondents were taken into consideration and they were selected on the
random basis.

Sampling:
“Sampling may be defined as the selection of an aggregate or totally on the basis of which a
judgment of reference about the aggregate of totally is made. “Sampling is used in
conducting surveys and in studying various problems concerning production management,
time and motion studies, market research, various areas of accounting and finance and the
like.

Sampling Method:
Convenience sampling was used by the researcher because it is easy and cheap to collect
data. Moreover the population size was very large to cover so it was best to use convenience
sampling.

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The selection of units from the population based on their easy availability and accessibility to
the researcher is known as convenience sampling. Convenience sampling is at its best in
surveys dealing with an exploratory purpose for generating ideas and hypothesis.

DATA COLLECTION
Both Primary as well as Secondary Research Method has been included for preparing this
final report.

Primary data
 Observation

 Personal Interviews

Interview and questionnaire have been used to conduct the study. A structured
questionnaire consisting close-ended questions have been made, which is filled by the
trainee during direct interaction with the respondents.

Secondary data
The secondary data is collected from various sources available within the organization like,
 Organizational web site

 Company Past records

 Library books

 Internet

 Annual reports

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RESEARCH PROBLEM

Research in common parlance refers to search for knowledge. Research is an academic

activity and as such it is used in a technical sense. According to Clifford Woody, research
comprises defining and redefining problems, formulating hypothesis or suggesting solutions,
collecting, organizing and evaluating data, making deductions and research conclusions to
determine whether they fit the formulating hypothesis.

Statistical Tools
Statistical techniques are to obtain findings and average information in logical sequence from
the raw data collected. After tabulation of data research have used the following quantitative
technique.
• Percentage analysis
• Charts

Percentage Analysis
Percentage refers to special kind of ratio. This method is used as making comparison
between two or more services of data. Percentage charts are used to decidable relationship.
Percentage can also be used to compare the relative terries, the distribution of two or more
services of data

Charts
Bar charts and pie charts are used to get a clear look at the tabulated data.

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Questionnaire
1. How do you manage your supply chain?

2. How successful do you think is your company in managing its supply chain in
general?

3. Does your company have a separate logistics department?

4. Does your company have a clear logistics strategic plan?

5. What types of systems are currently in use in your company to support Supply Chain
Management?

6. What types of systems do you plan to implement in the near future (within the next 2
years)?

7. How satisfied are you with the current public policy regarding SCM and IT?

8. Is supply chain management having all the address of the developer branches of the
company?

9. Rate the working strategies of supply chain management department on the basis of
the current programs?

10. Is the supply chain management department is having sufficient transportation?

11. According to the current growth process of the organization, which of the following
needs much attention and progress to boost the production?

12. Choose the right option, where the supply chain department is facing problem in
taking care of the raw material?

13. How do you rate the delivery activity of the department?

14. Is there any case recorded by the supply chain department in which the production
department complained late delivery of raw materials?

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Company Name:
Amul (Anand Milk Union Limitd)

Company Profile:
In the year 1946 the first milk union was established. This union was started with 250 liters
of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was
known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS‟ UNION. This union
selected the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This
word derived from the Sanskrit word “AMULYA” which means “PRICELESS”. A quality
control expert in Anand had suggested the brand name “AMUL”. Amul products have been
in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee,
Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul,
Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs.
6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products
sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of
indigenous technology, of the marketing savvy of a farmers' organization. And have a proven
model for dairy development (Generally known as “ANAND PATTERN”).

Kaizen Program was implemented in May 1995 to improve employee participation and
increase a feeling of belonging. This was followed by „Hoshin kanry‟, which means a
methodology for strategic direction setting. It provides a step by step planning,
implementation and review process for managed changed.

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Number of respondents: 50

Area of Study: Gujarat

Method used to classify data:

Interview and questionnaire have been used to conduct the study. A structured questionnaire
consisting close-ended questions have been made, which is filled by the trainee during direct
interaction with the respondents.

Method used to present the data:

The data collected form questionnaire is edited, tabulated and analyzed. Various graphical
techniques have been used to present the data in more meaningful way.

REFERENCES

BOOKS

 James Evans, Supply chain management, Tata McGraw hills 3rd edition p.n. 405 to
450

 Alberta Russel,Supply chain management, Wiley publication, 1st edition p.n. 1 to 50.

 John T. Mentzer ,Supply chain management Tata McGraw hills 4th edition p.n. 65 to
90

 Harland ,C.M.(1996) Supply Chain Management, Purchasing & Supply Chain

Management, Logistics, Vertical Integration, Material Management & Supply Chain
Dynamics. Excel books, p.n. 354 to 370.

 Operations management along with supply chain management by Russell and Taylor.

 Upendra Kachru, Exploring the supply chain theory and practices, Tata McGraw
hills,p.n.210 to 250.

 Analysis of Customer Satisfaction Data, By Derek R. Allen and Tanner R. Rao,

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  How to Measure Service Quality and Customer Satisfaction by Chuck Chakrpani,
 Arthur D. Little (1991) “Logistics in Service Industries” (Oak Brook, Ill.: Council of
Logistics Management, 1991).
 R. Mohan Pisharodi and C. John Langley, Jr., (1991) "Interset Association Between
Measures of Customer Service and Market Response," International Journal of
Physical Distribution and Logistics Management pp.21-41.
 Jay U. Sterling and Douglas M. Lambert, "Establishing Customer Service Strategies
Within the Marketing Mix," Journal of Business Logistics 8, no. 1 (1987): 1-37.

NEW PAPERS
 Times of India
 Economic Times
 The Hindu, etc.
WEB SITE VISITED
 www.google.co.in
 www.wikipedia.org
 www.indiatimes.com
 www.scm.com
 www.supplychainbrain.com

MAGAZINES & JOURNALS

 Business world
 Business today, etc.
 Journal of Business Logistics

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CHAPTERIZATION SCHEME:
1. INTRODUCTION
2. COMPANY PROILE
3. LITERATURE REVIEW
4. NEED,SCOPE AND OBECTIVE OF THE STUDY
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS, INTERPRETATION AND FINDINGS OF THE STUDY
7. RECOMMANDATIONS AND SUGGESTIONS
8. CONCLUSIONS
9. BIBILIOGRAPHY AND ANNEXURE

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