A SYNOPSIS FOR PROJECT REPORT ON

ACHIEVING COST REDUCTION AT RAMDEV

FOOD PRODUCTS PVT. LTD. THROUGH SUPPLY CHAIN MANAGEMENT A CASE STUDY

SUBMITTED TO:INDIRA GANDHI NATIONAL OPEN UNIVERSITY DELHI MARCH-2012

SUBMITTED BY:NIRALI D. MANDALIA

GUIDED BY:DR.MANGAL BHATT S.S ENGINEERING COLLEGE BHAVNAGAR.

A). RATIONALE OF THE STUDY:Ramdev dominate commercial organized spices market in India. Ramdev is the oldest masala companies in the today market. There are so many company of readymade masala. But all of them Ramdev is fast growing who providing good qualitative product at affordable prices. Ramdev was first started as small unit in 1963, in Ahmedabad, India. Ramdev has world class infrastructure to meet high standard requirements of global market. Mission of Ramdev is to deliver spices to customers with quality, purity and freshness. They also try to make spices in such a way that it can satisfy all consumers need like test, colour and good for health. They also want to give spices to customer at reasonable price and it must be available in the size that suits customer demand. In later year company also entered into export and it is exporting grinded spices to the countries like U.S.A, U.K, and AUSTRALIA. The company has its own export house. Ramdev have lots of products in its export basket like Basic Spices, Instant Mixes, Grocery, Misc, Food items, Cooking pastes, Papads and many other food products. Here, Researcher was studied about supply chain management in Ramdev and he has given the idea of achievement in cost reduction of supply chain management. A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products and the distribution of these finished products to customers. According to the Council of Supply Chain Management professional (CSCMP), supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion and logistic management. It also includes the crucial components of 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. The followings are the main rational of this study: Supply chain management has always been one of the most important criteria of making profitability of any company. The suggestions of this study will help the organization to reduce their working capital by achievement of supply chain management. This study also will help to improve efficiency and effectiveness of the organization.

B). OBJECTIVES OF THE STUDY:The present study is related to Ramdev Food Products Pvt. Ltd. supply chain management. The following diagram describes the existing supply chain management in Ramdev. A). Supply Chain Management in Ramdev Food Products Pvt. Ltd:

Supplier

Manufacturer

Distributor

Retailer

Customer

The present study explores and investigates how Ramdev Food Products Pvt. Ltd uses supply chain management to gain with their competitive advantage and increase business success with reducing total cost of supply chain. This study provides a theoretical framework to understand Ramdevs performance. Researcher tries to find the advances and new ideas in supply chain management with reducing cost at each and every stage because the majority of companies cannot compete on the basis of price alone, some sort of differentiation is necessary. Most importantly, this study endeavors to determine how Ramdev can be achieving their supply chain with cost reduction. This study addresses the following research objectives: To achievement of cost reduction in the supply chain management of Ramdev Food Products Pvt. Ltd. To analyze the profitability of the Ramdev Food products Pvt. Ltd. before and after achievement of supply chain management. To study the inventory of the Ramdev Food Products Pvt. Ltd. before and after achievement in supply chain management.

Hypothesis:
In order to reach the objective of the study the following major hypothesis were formulated. Reducing total cost of supply chain has made a reduction on the working capital of the company. There has been a decrease in the volume and value of inventory of the company. Achievement of Supply chain management has contributed to competitive advantage and long term profit of the company.

C). RESEARCH METHODOLOGY:According to Clifford Woody research comprise defining and redefining problem or suggested solution, collecting, organizing and evaluating data, making deduction and reaching conclusion.

RESEARCH PLAN: Data Sources Primary Data:

Information given by the employees of Ramdev serves the primary sources for this case study. Further more face-to-face meetings with employees can provide understanding and information on several qualitative areas such as: reasons for achieving specific supply chain factors (or strategies), and discussions and feedback on the questionnaire. Secondary Data: The secondary data needed for this study has been collected from various sources like Journals, annual report, financial statement of the company, online published document on internet, previous research report related to Ramdev Food Products Pvt.Ltd.

RESEARCH APPROACH:
Out of many types of research approaches, In this study researcher was selected qualitative research. Qualitative research includes survey and fact finding enquiries of different kinds. The major purpose of Qualitative research is description of the state of affairs as it exists at present.

Supply chain management is a vast collection of techniques. Hence, selection of supply

chain factors and strategies can be a complex process. In such a dynamic setting it is best to use qualitative research methodology (using case studies) to understand the situation.

RESEARCH INSTRUMENTS:
Researcher has conducted a survey through questionnaire. A structured technique for data collection that consist of a series of questions written or verbal. The communication method is the method of designing questionnaire with a view to collect the information.

SAMPLING TECHNIQUE:
Sampling is a procedure of using a small of units of a given population as basis for drawing conclusion about the whole population. There are two major techniques for sampling. For conducting this study Researcher has used the Non-probability techniques for sampling method. In Non-probability Researcher has used the convenience sampling techniques a slightly more sophisticated sampling techniques use for references. In convenience sampling, personal knowledge and opinion are used to identify the items from the population that are to be included in the sample.

SAMPLE ELEMENT:
The target population for this survey was the employees of Ramdev food products Pvt. Ltd. researcher have survey in Ahmedabad.

SAMPLE SIZE:
Researcher has selected a sample size of 20 respondents.

CONTACT METHOD:
Researcher has used personal interview and to face communication from employees.

D).EXPECTED CONTRIBUTION FROM THE STUDY: The data is based on a single company operating in Ahemdabad, Gujarat. This research focuses on how Ramdev achieved Supply chain management with cost reduction. As an exploratory study, the goal of this research effort is to seek greater understanding that can lead to building a foundation for more extensive research in the future. Researcher has tried to give useful and positive result so that it can act as guidance for further research in this field.

E). LIMITATIONS AND DIRECTION FOR THE FUTURE RESEARCH:

LIMITATIONS:
This research work has been completed after facing various types of difficulties because it is too tough to measure the success of an achievement of supply chain in a company. The sample sizes of employees were very small and in selected area so the response from them does not reflect the exact view.

The first tough task was collection of data for the purpose of review. Since the data is
related to achievement of any cost reduction systems are confidential of the company. Getting primary data from the company is very difficult. For being a private company the employees of the company are reluctant to give any information, which is specific to that company.

DIRECTION FOR THE FUTURE RESEARCH:

In this case study researcher is focused on single company operating geographically in Ahemdabad, India. Researcher can survey this study in depth by increasing their sample size, and increasing time duration for this study. Doing this Researcher can conclude the exact view of achieving cost reduction in supply chain management.