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CHAIN MANAGEMENT
ACKNOWLEDGEMENT
First and foremost, I thank the God for his substantial blessing and mercy at all stages
in the completion of the project.
I extend the immense gratitude to the Head of the Department Mr. XXXXXXX for his
motivation, inspiration, and encouragement for the completion for my project.
I would also like to thank all the staff of the organization for helping me directly and
indirectly to conclude this work. Last, but not the least, my heart felt gratitude to my parents,
relatives and my friends for their constant encouragement, support, help and valuable advice
to make this project a success.
Executive Summary
The Project has been done for The PONLAIT Private Limited on behalf of
Slang Mind Project Solution. The title of the project is “Customer Focus on Supply Chain
Management”.
The study starts with an Company’s profile and also the need for study, review of
literature and objectives are set out for the study. Research methodology, Data analysis &
Interpretation, Findings and Suggestions of the study follow.
One of the main areas of the project is the analysis part, where the data are
analyzed & interpreted, to find out the Supplier Performance. Some of the tools used
in Supply Chain analysis are regarding to:
Percentage Method.
And then conclusions, limitations & scope for further study were discussed.
Table of contents
LIST OF TABLES
LIST OF FIGURES
INTRODUCTION 1
II LITERATURE REVIEW 10
IV RESEARCH METHODOLOGY 22
VII CONCLUSION 42
INTRODUCTION
B. MILK PROCESSING
The present handling capacity of the Dairy plant is 50,000 ltrs per day. However
with prudent technical manpower and top managements support an average of
80,000 ltrs of milk is handled per day and 93,000 ltrs of milk handled in peak.
3 varieties of milk namely Tonned Milk, Standardised Milk & Premium Milk are
produced as per the consumer requirements. The daily consumer demand is met
fully. Present demand is 62,000 to 65,000 liters per day.
From the August 2002, the Dairy is supplying 15,000 liters of standardised milk
to school children in the morning under Sri Rajiv Gandhi School Children Break
fast scheme, 1st of its kind in the nation organized by the government of
pondicherry. Besides at present the union is 28,500 liters if milk supplying to the
students both in the morning and evening. The Evening milk supply effected from
20-10-2005 as desired by the government of pondicherry.
Besides milk processing and grading, the Dairy is equipped to produce 15 MTS of
ghee and 1500 kgs of Khoa (milk peda) monthly. The Ponlait ghee and khoa are
much sought after products in the pondicherry town.
The Dairy is producing 1000-1500 pockets of flavoured milk and 500-1000 of
butter milk every day and sells in pondicherry town.
The Dairy is also producing Paneer and Curd as per the requirement of the
consumer as and when needed.
C. QUALITY ASSURANCE BY MAKING PROPER MILK TESTING IN
LABORATORY AT DAIRY
Since the milk is highly perishable commodity, proper care is taken to maintain
quality of the milk right from the point of production to the point of consumption.
At the village level, the milk poured by the individual member producer are tested
at the primary society.
The milk tested for the quality at society level reaches the Dairy Plant. The raw
milk is tested organoleptically at the Dairy reception dock for its quality and then
the individual society sample are tested for its fat content and other microbial
standards.
Apart form this, the processed milk is sampled at every point of storage during the
process and proper care is taken to maintain quality standards.
Finally the different varieties of milk are graded and kept ready for packing to the
consumers. The pouched milk samples are randomly taken and tested for its shelf
life after dispatch of the consumers. Presently the milk is dispatched to the market
at 5 degree centigrade in three varieties viz Toned milk 3.0% Fat 8.5% SNF,
Standardised milk 4.5% Fat 8.5% SNF and the Premium milk 5.0% Fat 9.0%
SNF. (SNF- Solids Not Fat)
Day in and Day out maintaining the quality of milk receives the top priority.
D. MARKETING
The Pondicherry Co-operative Milk Producers’ Union is operating in the
Pondicherry market, selling three different varieties of milk catering to the
different segments of the market, under its brand name “Ponlait”.
Ponlait is the number one milk brand in the Pondicherry town. Though there are
many private players in the market, Ponlait is the major market shareholder. A
market survey finding indicates that the present market share of Ponlait is around
52%.
The present average market throughput is 62,000 ltrs per day and the sales is in
the uptrend. It is anticipated that the sales curve may touch its peak (60,100 ltrs
monthly average) during January 2006.
To cater the urban population, 180 retail outlets are operated by retail sales
agents. The retail outlets are supplied with milk through a network 10 milk
distribution routes daily in the morning and the evening.
Besides, the Union is also running 9 milk parlours to sell milk and ilk products.
Milk is made available to the urban consumers. 24 hours a day through 5 such
parlours.
E. CATTLE FEED
F. ADMINISTRATION
13 Milk supply to School Children under (Rajiv Gandhi Breakfast Scheme) 2002
14 Inaugrated Sofy ice cream sales at Bus stand Parlour (Atchaya Thiruthai) 2005
Managing Director PA to MD
Steno
Sr.
Asst/Typist Tech./ Sales D.Helpers D.Helpers Sr. Assts Sr.Assts
Sr.Asst Supervisor
Helpers
D.Helper/AI
1.2. NEED FOR STUDY
Customer focus on supply management (ponlait) is made for special purpose to improve
the product and marketing function for consumer satisfaction.
To find the competitors and analyze the methods for competition marketing.
Why some people don’t prefer ponlait and reason for non consumption
REVIEW OF LITERATURE
The definition one American professional association put forward is that Supply
Chain Management encompasses the planning and management of all activities involved
in sourcing, procurement, conversion, and logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers, and customers. In essence, Supply
Chain Management integrates supply and demand management within and across
companies.
Some experts distinguish Supply Chain Management and logistics, while others consider
the terms to be interchangeable.
Supply Chain Management is also a category of software products.
Supply chain event management (abbreviated as SCEM) is a consideration of all possible
occurring events and factors that can cause a disruption in a supply chain. With SCEM
possible scenarios can be created and solutions can be planned.
Activities/functions
Supply chain management is a cross-functional approach to managing the movement of
raw materials into an organization and the movement of finished goods out of the
organization toward the end-consumer. As corporations strive to focus on core
competencies and become more flexible, they have reduced their ownership of raw
materials sources and distribution channels. These functions are increasingly being
outsourced to other corporations that can perform the activities better or more cost
effectively. The effect has been to increase the number of companies involved in
satisfying consumer demand, while reducing management control of daily logistics
operations. Less control and more supply chain partners led to the creation of supply
chain management concepts. The purpose of supply chain management is to improve
trust and collaboration among supply chain partners, thus improving inventory visibility
and improving inventory velocity.
Several models have been proposed for understanding the activities required to manage
material movements across organizational and functional boundaries. SCOR is a supply
chain management model promoted by the Supply Chain Management Council. Another
model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply
chain activities can be grouped into strategic, tactical, and operational levels of activities.
Strategic
Strategic network optimization, including the number, location, and size of warehouses,
distribution centers and facilities.
Strategic partnership with suppliers, distributors, and customers, creating communication
channels for critical information and operational improvements such as cross docking,
direct shipping, and third-party logistics.
Product design coordination, so that new and existing products can be optimally
integrated into the supply chain, load management
Information Technology infrastructure, to support supply chain operations.
Where to make and what to make or buy decisions
Align overall organizational strategy with supply strategy
Tactical
Sourcing contracts and other purchasing decisions.
Production decisions, including contracting, locations, scheduling, and planning process
definition.
Inventory decisions, including quantity, location, and quality of inventory.
Transportation strategy, including frequency, routes, and contracting.
Benchmarking of all operations against competitors and implementation of best practices
throughout the enterprise.
Milestone payments
Operational
Daily production and distribution planning, including all nodes in the supply chain.
Production scheduling for each manufacturing facility in the supply chain (minute by
minute).
Demand planning and forecasting, coordinating the demand forecast of all customers and
sharing the forecast with all suppliers.
Sourcing planning, including current inventory and forecast demand, in collaboration
with all suppliers.
Inbound operations, including transportation from suppliers and receiving inventory.
Production operations, including the consumption of materials and flow of finished
goods.
Outbound operations, including all fulfillment activities and transportation to customers.
Order promising, accounting for all constraints in the supply chain, including all
suppliers, manufacturing facilities, distribution centers, and other customers.
b) Procurement process
Strategic plans are developed with suppliers to support the manufacturing flow
management process and development of new products. In firms where operations extend
globally, sourcing should be managed on a global basis. The desired outcome is a win-
win relationship, where both parties benefit, and reduction times in the design cycle and
product development is achieved. Also, the purchasing function develops rapid
communication systems, such as electronic data interchange (EDI) and Internet linkages
to transfer possible requirements more rapidly. Activities related to obtaining products
and materials from outside suppliers. This requires performing resource planning, supply
sourcing, negotiation, order placement, inbound transportation, storage and handling and
quality assurance. Also, includes the responsibility to coordinate with suppliers in
scheduling, supply continuity, hedging, and research to new sources or programmes.
e) Physical distribution
This concerns movement of a finished product/service to customers. In physical
distribution, the customer is the final destination of a marketing channel, and the
availability of the product/service is a vital part of each channel participant's marketing
effort. It is also through the physical distribution process that the time and space of
customer service become an integral part of marketing, thus it links a marketing channel
with its customers (e.g. links manufacturers, wholesalers, retailers).
f) Outsourcing/partnerships
This is not just outsourcing the procurement of materials and components, but also
outsourcing of services that traditionally have been provided in-house. The logic of this
trend is that the company will increasingly focus on those activities in the value chain
where it has a distinctive advantage and everything else it will outsource. This movement
has been particularly evident in logistics where the provision of transport, warehousing
and inventory control is increasingly subcontracted to specialists or logistics partners.
Also, to manage and control this network of partners and suppliers requires a blend of
both central and local involvement. Hence, strategic decisions need to be taken centrally
with the monitoring and control of supplier performance and day-to-day liaison with
logistics partners being best managed at a local level.
g) Performance measurement
Experts found a strong relationship from the largest arcs of supplier and customer
integration to market share and profitability. By taking advantage of supplier capabilities
and emphasizing a long-term supply chain perspective in customer relationships can be
both correlated with firm performance. As logistics competency becomes a more critical
factor in creating and maintaining competitive advantage, logistics measurement becomes
increasingly important because the difference between profitable and unprofitable
operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms
engaging in comprehensive performance measurement realized improvements in overall
productivity. According to experts internal measures are generally collected and analyzed
by the firm including Cost Customer Service Productivity measures Asset measurement,
and Quality.
External performance measurement is examined through customer perception measures
and "best practice" benchmarking, and includes 1) customer perception measurement,
and 2) best practice benchmarking.
Components of Supply Chain Management are 1. Standardisation 2. Postponement
3. Customisation
RESEARCH METHODOLOGY
Secondary Data
Secondary data was collected from Internets, various books, Journals, and
Company Records.
Formula:
r= Σ(X-Xi) (Y-Yi)
√Σ(X-Xi) 2 Σ(Y-Yi) 2
Where
X- Reason for repurchase
Y-Preference of respondent
CHAPTER – V
5. DATA ANALYSIS AND INTERPRETATION
5.1 PERCENTAGE METHOD - GENERAL INFORMATION
TABLE: 5.1.1
SEX OF THE RESPONDENT
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 MALE 35 70.0
2 FEMALE 15 30.0
50 100.0
TOTAL
Source: Primary Data
Inference: From the above table it is inferred that out of 50 employees, 70% of the
Respondents are male. Remaining 30 % of the respondents are female.
CHART: 5.1.1
Sex
60
Percent
40
20
0
male female
Sex
TABLE 5.1.2
OCCUPATION OF THE RESPONDENTS
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Business 5 10.0
2 Employee 21 42.0
3 Student 22 44.0
4 Farmer 2 4.0
Total 50 100.0
CHART 5.1.2
Occupation
50
40
Percent
30
20
10
0
Business Employee Student Farmer
Occupation
TABLE: 5.1.3
DO U CONSUME PONLAIT MILK
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Yes 40 80.0
2 No 10 20.0
TOTAL 50 100.0
80
60
Percent
40
20
0
Yes No
TABLE: 5.1.4
IF YES HOW FREQUENT DO CONSUME
NO OF
RESPONDENT PERCEN
S.NO OPTIONS S T
1 Weekly Once 15 30.0
2 Weekly Twice 4 8.0
3 Weekly Thrice 6 12.0
4 Regularly 25 50.0
TOTAL 50 100.0
CHART: 5.1.4
60
50
40
Percent
30
20
10
0
Weekly Once Weekly Twice Weekly Thrice Regularly
IF YES HOW FREQUENT DO CONSUME
TABLE: 5.1.5
MILK CONSUMPTION
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Whether you will go in search of your
preferred brand. 23 46.0
TOTAL 50 100.0
Source: Primary Data
Inference: From the above table it is inferred that out of 50 employees, 46% of the
Respondents search for preferred brand regularly, 40 % of the Respondents consume
What ever brand available
CHART 5.1.5
MILK CONSUMPTION
50
40
Percent
30
20
10
0
Wheather you will go in search You consume what ever brand You will not consume if your
Of your preferred brand. Available from where you prefered brand is not available
Consume
MILK CONSUMPTION
TABLE: 5.1.6
PURCHASE MILK
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 From grocery shop
15 30.0
2 From ponlait parlours 11 22.0
3 From local merchant 17 34.0
4 From other sources 7 14.0
Total 50 100.0
Source: Primary Data
Inference: From the above table it is inferred that out of 50 employees, 30% of the
Respondents purchase milk from grocery shop, 22 % of the Respondents purchase milk
from parlour
CHART: 5.1.6
PURCHASE MILK
40
30
Percent
20
10
0
From grocery shop From ponlait parlours From local merchant From other sources
PURCHASE MILK
TABLE: 5.1.7
LEADING SUPPLIER
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Yes
44 88.0
2 No
6 12.0
TOTAL 50 100.0
LEADING SUPPLIER
100
80
Percent
60
40
20
0
Yes No
LEADING SUPPLIER
TABLE: 5.1.8
PRICE
S.NO OPTIONS NO OF RESPONDENTS PERCENT
1 High 13 26.0
2 Low 15 30.0
3 Normal 20 40.0
4 Very low 2 4.0
TOTAL 50 100.0
CHART: 5.1.8
PRICE
40
30
Percent
20
10
0
High Low Normal Very low
PRICE
TABLE: 5.1.9
OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME
40
30
Percent
20
10
0
Ghee Khoa Flower milk Curd
OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME
TABEL: 5.1.10
WHY DO PREFER PONLAIT BECAUSE OF ITS
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Price 10 20.0
2 Quality 24 48.0
3 Brand name 7 14.0
4 All the above 9 18.0
TOTAL 50 100.0
CHART: 5.1.10
50
40
Percent
30
20
10
0
Price Quality Brand name All the above
WHY DO PREFER PONLAIT BECAUSE OF ITS
TABLE: 5.1.11
WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Yes
39 78.0
2 No
11 22.0
TOTAL 50 100.0
80
60
Percent
40
20
0
Yes No
WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET
TABLE: 5.1.12
CUSTOMER FOCUS ON SATIFACTION LEVEL
40
30
Percent
20
10
0
Highly satisfied Satisfied Neutral Dissatisfied
TABLE: 5.1.13
WHAT DO YOU PREFER OTHER THAN THE PONLAIT
60
50
40
Percent
30
20
10
0
Arokiya Rusi
WHAT DO YOU PREFER OTHER THAN THE PONLAIT
TABLE: 5.1.14
DO YOU FIND ANY DEFECTS IN PONLAIT MILK
NO OF
S.NO OPTIONS RESPONDENTS PERCENT
1 Yes 19 38.0
2 No 31 62.0
Total 50 100.0
Source: Primary Data
Inference: From the above table it is inferred that out of 50 Respondents.62% of the
Respondents have no defects, 38 % Respondents have defects.
CHART: 5.1.14
60
Percent
40
20
0
Yes No
DO YOU FIND ANY DEFECTS IN PONLAIT MILK
5.1.15 ANALYSIS BY CORRELATION BETWEEN REASON FOR
DEFECTS AND HEALTH PROBLEM
Table 5.1.15
Factors Health Defects X-Xi Y-Yi (X-Xi) (Y-Yi) (Y-Yi)2
Yes 30 19 5 -6 -30 25 36
No 20 31 -5 6 -30 25 36
Total 50 50 0 0 -60 50 72
Xi = 50/2= 25
Yi = 50/2 =25
Formula:
r = Σ (X-Xi) (Y-Yi)
Σ(X-Xi)2 Σ(Y-Yi)2
Calculation:
r = -60
60
= -1
Inference:
The value of r is -1. it indicates that there is a negative correlation between the
health and defects.
CHAPTER – VI
88% of the Respondents responds that leading supplier are ponlait milk, 22 %
of the Respondents are other leading supplier
40% of the respondents price are normal, 30 % of the respondents price are
low.
They have to focus not only on milk but also in other products like
Curd, Ghee ,and Khoa to improve their market status.
CHAPTER – VII
CONCLUSION
Customer Focus will help to learn customer buying attitude. In Ponlait not get
much more awareness from public, so kindly to improve the advertisements and other
improvements process such as to introduce new size of packs than the normal size (i.e.,
200ml to 300ml packs) and improve the protein level.
The study has been conducted at PONLAIT. The company has become a
leading in milk products in puducherry..
The researcher has conducted the study for 30 days. A survey was conducted
with 50 respondents in the company by using questionnaire to collect the
information’s from the respondents. After gathering the information’s, the researcher
has analysis the data by interpreting the various tools. Based on the analysis, the
researcher has given some suggestions to the management to develop customer focus.
CHAPTER-VIII
Due to lack of time, unable to collect more information from the Customers.
The project throws on the needs for learning buying behavior for successfull
marketing.
It will be helpful for the management to identify the needs and benefits of the
This project can be base for the students who are doing the project in the related
area and to the organization in viewing the worth of the consumer and attitude of
QUESTIONAIRE
02. Place :
05. Occupation :
13. Other than the milk which product do you like to consume
a)Special b)General
a) Highly satisfied
b) satisfied
c) Neutral
d) Dissatisfied
e) Highly dissatisfied
Books:
Web Sites:
[1] www.bpotimes.com
[2] www.managementorg.com
[3] www.answers/topic/consumerbehavior.com