Professional Documents
Culture Documents
ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES ADOPTED BY DINSHAWS DAIRY FOODS LTD.NAGPUR
Submitted to GOVINDRAO WANJARI COLLEGE OF MANAGEMENT STUDIES AND RESEARCH, 156, Borkhedi (Gate), Near Railway Crossing, Butibori, Nagpur (M.S.) 1
GOVINDRAO WANJARI COLLEGE OF MANAGEMET STUDIES & RESEARCH BORKHEDI (GATE), BUTIBORI, NAGPUR, PH.NO.07104-329490
(Approved by AICTE New Delhi & Affiliated to Nagpur University)
Certificate
This is to certify that Mr. Raunak Ravinda Gaikwad is bonafide student of Master of Business Administration course with specialization in Operations Management, for the session of 2009-2011 of Govindrao Wanjari College Of Management Studies and Research, Butibori, Nagpur. This candidate has worked under the supervision of Ms. Mamta Kamble and has satisfactorily finished his project work, in this academic session. The project submitted by his own work, and is complete so as to warrant its presentation for examination. His project work, entitled to ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES ADOPTED BY DINSHAWS DAIRY FOODS LTD.NAGPUR which is in partial fulfillment of requirement for the above course, and is being forwarded to Nagpur University for examination.
DECLARATION
To, The Principal, Govindrao Wanjari College Of Management Studies and Research (MBA)
Respected Madam,
I RAUNAK RAVINDRA GAIKWAD, hereby declare that the project report entitled ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT
PRACTICES ADOPTED BY DINSHAWS DAIRY FOODS LTD.NAGPUR is submitted by me for the partial fulfillment of MBA at Govindrao Wanjari College of Management Studies and Research (MBA). This report is an original work prepared by me.
ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is not different. I am thankful to my faculty Ms. Mamta Kamble for supporting me and guiding me throughout the project. This report would not have been possible without her help.
I am equally thankful to the Principal, G.W.C.M.S.R, Butibori Dr. Asha Tiwari for encouraging me and inspiring me to do my project with full dedication.
RAUNAK GAIKWAD
INDEX
Sr.no. 1 CHAPTERS CHAPTER 1 PARTICULARS Abstract Aim Objectives 2 3 4 5 6 7 8 9 10 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 Introduction of company Introduction of topic Literature review Research methodology Data analysis and interpretation Conclusion Suggestion PAGE NO.
AIM
ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES ADOPTED BY DINSHAWS DAIRY FOODS LTD.NAGPUR
OBJECTIVES
To study supply chain management at Dinshaws dairy foods ltd. To study milk procurement process at Dinshaws dairy foods ltd. To study production process at Dinshaws dairy foods ltd. To study distribution network of Dinshaws dairy foods ltd. To focus on product distribution process. To study transport management system.
INCEPTION
Early 1930s: Two enterprising brothers, DINSHAW and ERUCH RANA, started a small dairy business in Gittikhadan, on the outskirts of Nagpur. Their obsession with quality and transparent business practices, brought prosperity and confidence to the young businessmen. When opportunity knocked in the form of an Englishman who suggested that they try manufacturing ice cream, the idea was readily translated into reality. DINSHAWS ICE CREAM was born in 1933 when Nagpurians came to know the creamy, hand churned delicacy.
INTIAL GROWTH An alien concept, ice cream eating was considered a luxury, which could only be indulged in, on very special days during the sweltering heat of Nagpurs grueling summer. The conviction of their ultimate success, and the vision of these young entrepreneurs, far outweighed the difficulties of running a purely seasonal business with its vagaries of demand. By mid forties, Nagpurs gentry had extended ice cream eating into the winter and the name DINSHAWS had become synonymous with the ice cream in Nagpur.
THE SECOND GENERATION GROWTH: SAM DINSHAW RANA and JIMMY ERUCH RANA put on the mantles of their august fathers. Burning with the same zeal to succeed, the same uncompromising attitude towards quality and service, the Rana cousins struck out for wider horizons in 1981. With an investment of just Rs.5 Lakhs, a small factory came up to replace the cattle pounds. The dairy business gracefully gave way to its prospering offspring, the ice-cream business.
The magic of DINSHAWS goodwill spawned a net work of enthusiastic dealerfranchises all over central India, where DINSHAWS enjoy near monopoly even today.
Success breeds Success. The sound business principles of the founders, which gave them their initial success, became the foundation of DINSHAWS business edifice. Quality consciousness went beyond the quality of relations with employees, business associates and its ultimate consumer. By 1987 DINSHAWS was known in central India as not only the company, which made the best ice creams, but also the company that built best relations.
Persistent efforts from prospective distributors and dealers of other areas and greater demand for varieties from existing areas forced DINSHAWS to expand its manufacturing capacities. Imported continuous freezers expand plants and storage facilities wide with market demand.
By 1989 cold storage depots had sprung up in Raipur, Jabalpur, Indore, Akola, Aurangabad, Pune, Hyderabad, Guntur and Vishakhapatnam more by pressures of demand than by design. Consumer appreciation for its products and for its credo of VALUE FOR MONEY forced continuous expansion and modernization of manufacturing capacities which today are to the tune of 35000 Liters of ice-cream per day. By 1990 the business was experiencing difficulty in getting regular supplies of good quality to need its ever-increasing needs. The obstacles were turned into an opportunity to diversify into Diary business.
The firm had turned full circle by coming back to its parent business of Diary which today has a capacity to process and pouch 1lac liters of Milk per day. The citizens of 9
Nagpur who were dependent only on milk supplied by Government Milk Scheme and local vendors welcomed the supply of standardized quality milk and DINSHAWS became the first branded milk to be sold in Nagpur.
Being a responsible corporate citizen and being aware of the needs of protecting its environment, DINSHAWS have invested more than Rs.70 Lakhs in an Effluent Treatment Plant, which is a model for any industry of its size. As in all other areas,
Dinshaws foray in Bombay has been on a low key. DINSHAWS have been able to grow in the face of competition from national and multinational giants of the industry because of the inherent strength of its products, policies and people.
10
Suppliers: There are two modes of raw milk procurement & supply. 1. Own collection 2. Other dairies
Own collection:Dinshaws has established dairies all over the Vidarbha and Maharashtra which provides a continuous supply of milk. This own collection also includes two modes as 11
Chilling centers:There are twelve chilling centers across vidarbha region. These plants are having capacity of 25000 liters. Milk is stored at low temperature & as per the capacity of plant supply is provided. There are some locations where chilling centers are located Ravanwadi, Dahegao, Neharwani,Selu, Tiroda, Mandhal, Kodamendhi.
Bulk coolers:These are milk storage plants having low storage capacity around 5000ltrs farmers provide the milk in loose i.e. 5 to 10 ltr each. Dinshaws provide support to the dairy farmers to run their farms
MILK PRODUCTION The buffalo and the cow and to a very limited extent the goat are the main milch animals in the India. The buffalo contributes some 64 per cent, the cow 33 per cent and the goat 3 per cent of the total milk produced in India. There are several well recognized breeds of cows and buffaloes in the region such as Red Sindhi, Gir, Tharparkar, and Sahiwal among the cows, and Murrah and Neeli Ravi among the buffaloes, are outstanding breeds. The milk of the buffalo is comparatively richer in fat content than that of the cow. In order to increase milk production we must have to : Upgrade our animals Better feeding practices and Well organized veterinary services, including artificial insemination.
The population of the cross-bred cows and the upgraded buffaloes is expected to increase the milk production significantly.
12
MILKING CONDITIONS AND HYGIENE Most of the milk in India is produced in the villages by farmers with small land holdings and also by landless agricultural laborers. Although an increasing portion of the milk produced is collected by the Supplier and other organized dairies, a significant portion of the milk is still being converted into traditional dairy products due to lack of refrigeration and transportation facilities. Conditions under which milk is produced in the villages are far from satisfactory, mainly because of the economic backwardness of the producers. The milk animals are housed in a part of the living space of the family or in small closed or open yards adjacent to the family house. Flooring is usually a plaster of mud. The cows are rarely washed before milking. Buffaloes generally wallow in ponds, especially in the hot summer months. Milking is done by hand, usually after suckling by the calf. Except in a few modern large farms, milking machines are not used. Because of the distances between the producing and consuming points, milk is unavoidably held at ambient temperatures for a significantly long time leading to high microbial growth. The high ambient temperatures in the region for the major part of the year support rapid microbial growth. The predominant types of micro flora in milk received in dairies are coliforms, micrococci, lactic streptococci, spore-forming aerobes and corynebacteria, the majority of these being contaminants from milk utensils. There is also a high incidence of thermo uric bacteria.
Milk is procured form area to fulfill the industry needs by procurement departments of the companies. This is the most important department in every dairy industry, provided with highly paid Procurement managers supported with a team of qualified and experienced staff of zonal managers, area executives or milk collection controller, milk collection supervisors, mobile testers, drivers, peons and etc. in order to support the procurement staff a separate wing of accounts is also established. This
13
is the department with highest number of employees. Procurement of milk is not an easy job.
It stands on the following five pillars: 1. Quantity 2. Quality 3. Cost 4. Competition 5. Man Power
Quantity: Every dairy industry operates at its capacity to be a profitable. So in this competitive environment to have some specific volume of raw milk some time is the biggest challenge then quality. If a procurement department is failing to achieve the target quantity, it means it is not functioning properly. This definitely affects dairy business. Following factors affect the quantity: Season (availability of milk) Market competition Rate of milk Payment system (direct/banks) Payment duration (at Spot, after week, after fortnight) Milk procurement size (larger the size of the procurement greater the quantity of milk) Company strategy. Raw milk receiving parameters
Quality: Good quality milk is essential for production of good quality dairy products, taste and flavor, free from pathogens and long keeping quality. Good quality raw milk must be: a. Free from debris and sediment b. Free from off-flavors. 14
c. Low in bacterial numbers. d. Normal composition and acidity. e. Free of antibiotics and chemical residues.
Ultimate objective of any industry is to provide their customers with best quality product. Hence quality play important role in the procurement of milk .It is the biggest challenge for a company, as it affects cost, quantity, & competition. Increase quality, decrease quantity, increase cost & competition. At procurement stage in order to have good quality raw milk, company takes following steps:
1. Develop infrastructure Develop Centers Install Chilling units Develop Lab Development of VMC
2. Staff Recruitment Recruit Provision of Competitive salary Train Provision of necessary facility
3. Transportation system Cost: I. Before Set up Projection Cost Set up / Capital cost Running cost. 15 Tanker purchase Vehicles purchase/rent
Landed Cost: Landed cost is the sum of following three costs : Variable : 1.Raw milk Price 2. Ice / Chilling 3.Transportation cost; it includes Haulage cost Variable Fix Losses
Fixed cost : 1. Procurement cost; includes salaries wages benefits 2. Utilities 3. Rents 4. Maintenance and repair 5. Weighing / measuring cost 6. Storage cost; it includes ice and chilling cost 7. Other miscellaneous cost; including quality cost and etc.
Fixed Cost on milk procurement can be reduced by increasing volume of milk. It can also be reduced by controlling losses and over heads.
Competition: Following types of competition exists in area for procurement of milk these competitions some time are beneficial for company and sometimes may be harmful for company. 1. Industry to industry 2. Producer to producer
16
Industry to industry competition: This kind of competition occurs between the industries through producers. Procurement staff of company plays an important role in this type of competition due to their relations & behavior towards the producers. More such kind of competition is beneficial for the producers. This kind of competition results into following: Increase cost Decrease quality Increase quantity with each industry
Producers to producers competition: This kind of competition occurs between the producers through companies. More such kind of competition is beneficial for the industries & may results into following: Increase quantity Increase quality Decrease price
MILK PROCUREMENT TYPES: Milk Procurement is the starting point of dairy industry supply chain. The procurement process starts on the farm, where producers are advised, quality is monitored and raw milk is collected daily from various Farmers/progressive farmers by mini-suppliers and village milk collection centers countrywide and transported to factories in the most cost-effective manner. Raw milk quality is the cornerstone of excellent dairy products. Milk Procurement guards this quality with an eagle eye and ensures that companys production needs are met. Through teamwork within the supply chain, procurement teams of companies ensure that raw milk losses are kept to the absolute minimum. Milk procurement is basically of two types : 1. Suppliers collection 2. Self collection 1. Supplier Milk collection system: In this case supplier brings milk with their own sources at factory. The milk is scrutinized by quality assurance department of dairy as 17
per their standards. If milk pass all the quality test then this milk is received otherwise the milk is rejected.
Mini/Hilux contractor: In this type of milk collection local supplier of area, collects milk with their own resources and bring this milk to companies sub center. If milk is according to companys standard that milk is received otherwise rejected. All types of collected milk are brought to sub centers, where it is chilled (by chiller or by ice) and transported to Main center either through 1.7, 5 or 9 tons of tankers depending upon the quantity of milk, here milk is chilled through chillers and transported to plant. 2. Self Milk collection system: image
A. Village Milk Collection (VMC): In this case a local community nominated person (VMC agent) collect milk from local farmers on behalf of company by using company facilities. The VMC agent gets commission from company on per litter collected milk. After collection VMC agent either himself approach the nearby center of company for handing over of collected milk or company vehicle collect milk from that VMC agent as per written agreement. Very good quality milk is collected through the VMCs. No doodhi is involved in this type of collection. B. Progressive formers: Having 10 adult buffalo or minimum 25 liters milk. C. Direct Farmer: Having one or more milch animal and bring milk directly to sub center or MCC (Milk chilling center)
Bulk milk transport: A Milk procurement team of companies ensures that milk is collected and transported to factories daily. Milk cooled on the farm or cooling centre may be transported in bulk tankers. Bulk tankers are insulated, so the milk will remain cold until it reaches the plant (provided the transport is fast, i.e. short distance or good roads enabling milk to be delivered before the temperature of milk rises above 10*C
18
Reception of milk at plant: At reaching plant quality assurance staff of reception lab takes the representative sample of whole milk tanker and analyses it for various parameters as per standards of company. If milk found as per quality norms of company the tanker is weighed and production department staff receive the milk for further processing otherwise the sub standards raw milk tanker is rejected.
MILK PROCUREMENT SYSTEM (MPS): The primary function of any Milk Procurement System (MPS) is to expedite dairy milk producers payroll process. This is accomplished using a complex system that documents the pickup, testing, delivery of milk, and issues payment to producers of milk and those responsible for its transport. In addition to tracing the movement of milk as it is picked up, tested, and transported to the plant, the Milk Procurement System issues checks and records financial information for producers, haulers, and vendors. MPS facilitates the dairys milk producer payroll process from beginning to end. ROLE OF MPD OF ANY COMPANY IN MILK PROCUREMENT: Milk procurement department of any company provides a value-added service to all their milk producers, ensuring that milk of the correct quality is produced and that sufficient raw milk is always available to satisfy companys needs, through the use of strategies, processes, projects, systems and policy. Procurement teams of companies manage a number of Milk Procurement responsibilities including: 1. Ensuring that the producers are paid promptly and accurately. 2. Purchasing raw milk from producers and transporting it to factories effectively and efficiently. 3. Successful clean milk route development in various new identified areas. 4. Installation of bulk coolers in the area. 5. Milk yield improved. 6. Hygiene practices improvement at all levels of milk production and procurement 7. Reduction of Bacterial Count of milk. 8. Advanced training to drivers in the handling of mass milk in case of emergencies. 9. Trainings to field staff for handling of sample and client. 19
Most of the dairy product packaging is done in the paper based packing material. The paper can be wax coated paper, plastic coated paper, grease proof paper, box boards and other kind of dairy product packing paper. Then glass bottles are used as dairy product packaging as these are easy to clean and almost inert to chemicals.
Apart from these there are aluminum foils, tin plates, timber, plastics, low and high polymers that are used as dairy packaging material. Types of Dairy Products Milk: Powdered and Liquid Fermented Milk Whey Based Drinks Curds Cheese Cottage Cheese Cream Butter etc.
Branding in Dairy Packaging Packaging is an integral part of the brand identity. The packaging of any dairy product should deliver consumer expectations of natural dairy taste and freshness, and should have a unique natural appeal and should extended shelf life. Dairy packaging has three main functions to perform: 20
Types of Dairy Packaging Pouch/Sachet: The pouch or sachets are formed from either a reeled or flat film.
UV light may be used to sterilize the film. This type of dairy packaging is used to package butter, cheese, milk powder etc. Carton: It plays a very important role in the bulk packaging of milk. It is used for
liquid, frozen and coagulated milk products. It is mainly available as preformed containers or as precut blanks or sheets ready to be formed into containers. Packet: Usually made of plastic, it is used to keep pasteurized liquid milk. Barrel: Barrels are usually made of wood and are coated with wax on the inside.
They are used for bulk packaging of semi-solid buttermilk, sweetened condensed milk, etc. Cup: Cups are made up of paper with plastic or wax coating on inner surface. This
type of dairy packaging is usually covered with a lid and used for frozen and coagulated products. Cans: This is popularly used for various types of solid, semi-solid and powdered
products. Aluminum cans widely used. They are the most convenient for gas packing and suitable for dairy packaging. Bottles: Made of glass with aluminum closures, the bottles are suitable for storing
milk shakes and liquid stuffs. Collapsible Tube: It is used for packaging semi-fluid products like sweetened
condensed milk, processed cheese spread etc. It is usually made up of aluminum and lacquered on the inner side.
Types of Materials Used in Making Dairy Packaging Metalized plastic films PVDC coated films Plastic 21
Paper Nylon LDPE Laminates Polyolefin Polypropylene LDPE polyethylene LLDPE polyethylene etc.
The milk chilling/dairy industry is one of the more intricate and diverse, and it requires refrigeration and temperature controls that are reliable throughout all its aspects. Refrigeration is needed in the production and storage of a wide range of products from milk, cheese and butter.
And, refrigeration is a vital aspect in new product development. In addition, proper refrigeration is needed to meet hygienic and government standards, the delivery of an attractive dairy product to consumers, and energy consumption demands of the refrigeration plant. Recommended Compressor: MX-Series Single Stage Application parameter Models Compressor speed RPM Milk Chilling Capacity per day in Liters Electric motor required Request for Quotation MX100 MX200 MX300 MX400 MX600 MX900 750 27500 750 55000 750 82500 750 110000 750 165000 750 247500
KW HP
19 25
37 50
55 75
75 100
110 150
170 225
850
850
850
850
850
850
22
31000
62700
93500
125400
187000
280500
KW HP
22.5 30
45 60
67 90
90 120
125 170
190 250
Note : Evaporating Temperature Condensing Temperature Temperature of incoming milk Temperature of milk after chilling Duration for which ice is built in the Ice Bank Tank Refrigerant The above data is for general guidelines only. : : : : : : -10oC +40oC +35oC +4oC 18 Hrs Ammonia
3. DISTRIBUTION
TRANSPORT MANAGEMENT SYSTEM A Transportation Management System (TMS) is a software system designed to manage transportation operations. TMS are one of the systems managing the supply chain. They belong to a sub-group called Supply chain execution (SCE). TMS, whether it is part of an Enterprise Level ERP System or from an integrated "Best of Breed" Independent Software Vendor(ISV) has become a critical part of any (SCE) Supply Chain Execution and Collaboration System in which real time exchange of information with other SCE modules has become mission critical. In more recent times, we have seen that these systems are being offered in many different types of licensing arrangements. These different arrangements have given shippers who otherwise would not be able to afford sophisticated software the opportunity to utilize TMS to better manage this vital function. The 3 primary offerings are: 23
1. On-Premise Licensing (traditional purchased license) 2. Hosted (remote) 3. On-Premise Hosted Licensing (a blend of 1 & 2)
Additionally, we are seeing that some software providers have either been acquired or merged with traditional supply chain management consultancies and are now offering shippers "blended" managed and software services as an outsourced process. Primary Tier 1 TMS providers are still independent, carrier and 3PL neutral, and ERP neutral. TMS usually "sits" between an ERP or legacy order processing and
warehouse/distribution module. A typical scenario would include both inbound (procurement) and outbound (shipping) orders to be evaluated by the TMS Planning Module offering the user various suggested routing solutions. These solutions are evaluated by the user for reasonableness and are passed along to the transportation provider analysis module to select the best mode and least cost provider. Once the best provider is selected, the solution typically generates electronic load tendering and track/trace to execute the optimized shipment with the selected carrier, and later to support freight audit and payment (settlement process). Links back to ERP systems (after orders turned into optimal shipments), and sometimes secondarily to WMS programs also linked to ERP are also common. Most TMS systems help shipper directly work with asset-based carriers and support dis-intermediation (including avoiding use of non-asset based brokers and other intermediaries). Transportation Management Systems manage three key processes of transportation management: 1. Planning and Decision Making: TMS will define the most efficient transport
schemes according to given parameters, which have a lower or higher importance according to the user policy: transport cost, shorter lead-time, fewer stops possible to insure quality, flows regrouping coefficient 2. Transport follow-up
TMS will allow following any physical or administrative operation regarding transportation: traceability of transport event by event (shipping from A, arrival at B, customs clearance), editing of reception, custom clearance, invoicing and booking documents, sending of transport alerts (delay, accident, non-forecast stops) 24
3. Measurement
TMS have or need to have a Logistics KPI reporting function for transport. Various functions of a TMS: o Planning and optimizing of terrestrial transport rounds Transportation mode and carrier selection Management of air and maritime transport Real time vehicles tracking Service quality control Vehicle Load and Route optimization Transport costs and scheme simulation Shipment batching of orders Cost control, KPI (Key performance indicators) reporting and statistics Typical KPIs include but not limited to:
1. % of On Time Pick Up or Delivery Performance relative to requested 2. Cost Per Metric - mile; km; Weight; Cube; Pallet
Key Benefits Route Planning and Optimization Reduce Distribution Costs & Fleet Miles - Daily routes are created using powerful
algorithms and street-level routing, in conjunction with your business constraints Increase Resource Utilization-Make better use of existing resources by delivering
more and driving less. The answer to increasing volume is not always to put more vehicles on the road, but to make smart, efficient Make Sound Business Decisions -Understand how delivery costs affect the
profitability of each customer by knowing the actual cost per stop Set Driver Standards - Creating route plans and gathering actual information
allows you to set performance standards and expectations-which can result in less overtime and better driver performance Decrease Routing Time - Let your routers spend less time configuring routes and
more time assessing what-if scenarios to produce better, more efficient routes.
25
Contingency Planning - Prepare for holiday or seasonal spikes and other "what if"
delivery cost, actual versus projected by route and by stop, planned route summaries and many more reports to help you consistently evaluate your success Load Optimization Accurate and Quick Load Design for Multiple Route Types - Each type of route
requires different loading patterns. Determine (or assign) equipment to warehouse bays with capacities, preferences or even empty bays for returned goods Multiple Loading Strategies - Different delivery operations require different
loading strategies. Our warehouse-friendly software allows for greater picking efficiencies by grouping SKUs. Driver-friendly groups product by stop, minimizing the number of bays a driver must visit at each stop Pre-Build Orders - Load orders to be picked, built and pre-staged throughout the
day, all while continuing to have them allocated to the correct route and truck during the final loading pass Load Design to Reduce Product Breakage - Most breakage occurs within the first
10 minutes of a route due to poor packing. Fleet Loader's leading loading algorithms allow for proper mixing and stacking to reduce breakage Reports - Final load sheet, driver check-out, load validation and pick sheets
26
According to the report of Sumit Kukreja, a management trainee from Amity University, food and beverages are the one of the largest growing trade in FMCG sector and ice-cream is the pathfinder of this trade. The continues grow in the demand of icecream in India is showing the great opportunity in future.
According to the project work done by the management students Swati Kiran & Kriti Tiwari of IMT Ghaziabaad on AMUL, the growth rate of dairy foods due to better supply chain management practices and strong distribution network in India is steady but is increasing in the future.
India is the largest milk producer in the world, yet only around 15 per cent of the milk is processed. The organized liquid milk business is in its infancy and also has large long-term growth potential.
27
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.
DATA COLLECTION
Both Primary as well as Secondary Research Method has been included for preparing this final report.
OBSERVATIONS - It is the methods of nothing and recording information without asking specific question from the respondents. The advantage of this method is that it is highly effective to provide information asked for.
PERSONAL INTERVIEWS - In this method I asks the question from the performa in the order questions are listed and record the replies.
CHAPTER 6
25 20
Axis Title
15 10 5 0 Close partnership with suppliers No. of Respondent 2 JIT supply Outsourcing Many suppliers 20 Holding safety stock 4
Out of 30 employees of Dinshaws dairy food ltd maximum no. of employees think that supply chain management of Dinshaws dairy food ltd is managed by many suppliers.
29
2. How successful do you think is your company in managing its supply chain in general? * Not successful at all * Not successful * Somewhat successful * Successful * Very successful Not successful at all Not successful Somewhat successful Successful Very successful
25 20
Axis Title
No. of respondent 0 0 4 20 6
15 10 5 0 Not successful at all No. of respondent 0 Not successful 0 Somewhat successful 4 Successful 20 Very successful 6
Most of the employees think that Dinshaws dairy food ltd is managing Supply Chain Management successfully.
30
3. Does your company have a separate logistics department? YES Yes No No. of respondent 30 0 NO
0%
Yes No
100%
31
4. Does your company have a clear logistics strategic plan? YES Yes No No. of respondent 28 2 NO
7%
Yes No
93%
Out of 30 employees 28 think that Dinshaws dairy food ltd has a clear logistic plan.
32
5. What types of systems are currently in use in your company to support Supply Chain Management? Subcontracting 3PL Supply Chain Benchmarking Vertical integration
20 18 16 14
Axis Title
Out of 30 employee 19 think that supply chain benchmarking supports supply chain management of Dinshaws dairy food ltd.
33
6. What types of systems do you plan to implement in the near future (within the next 2 years)?
Plan strategically 5
14 12 10
Axis Title
Out of 30 employees 13 employees think that in future there is need of implementing e-procurement. procurement.
34
7. How satisfied are you with the current public policy regarding SCM and IT? *Satisfied *Very satisfied *Same what satisfied *Not satisfied Satisfied Very satisfied Same what satisfied Not satisfied
25 20
Axis Title
No. of respondent 20 5 2 1
15 10 5 0 Satisfied No. of respondent 20 Very satisfied 5 Same what satisfied 2 Not satisfied 1
35
8. Is supply chain management having all the address of the sub distributors branches of the company? Yes Yes No No No. of respondent 27 3
10%
Yes No
90%
Out of 30 employees 27 of Dinshaws dairy foods ltd. knows the address of the nows sub distributors.
36
9. Rate the working strategies of supply chain management department on the basis of the current programs? * Outstanding * Excellent * Good * Average Outstanding Excellent Good Average
20 18 16 14
Axis Title
No. of respondent 2 8 2 18
Out of 30 employees 18 employees think that the working strategies of supply chain management department are average.
37
10. Is the supply chain management department is having sufficient transportation? * Yes * Not sufficient No. of respondent Yes Not sufficient 25 5
17%
83%
Out of 30 employees 25 think that transportation is sufficient for Dinshaws dairy foods ltd.
38
11. According to the current growth process of the organization, which of the following needs much attention and progress to boost the production? * Operational activities * Tactical activities * Current programming strategies Operational activities Tactical activities Current programming strategies
30 25 20
Axis Title
No. of respondent 25 3 2
Out of 30 employees 25 think that there is a need to pay attention on operational activities.
39
12. Choose the right option, where the supply chain department is facing problem in taking care of the raw material? * During storage * Packaging * Testing of packaging * Evaluation of defective raw material During storage Packaging Testing of packaging Evaluation of defective raw material No. of respondent 15 5 1 9
16 14 12
Axis Title
10 8 6 4 2 0 During storage No. of respondent 15 Packaging 5 Testing of packaging 1 Evaluation of defective raw material 9
Out of 30 employees 15 employees think that supply chain management is facing problem during storage.
40
13. How do you rate the delivery activity of the department? * Excellent * Very effective * Good * Average No. of respondent 3 5 13 9
14 12 10
Axis Title
41
14. Is there any case recorded by the supply chain department in which the production department complained late delivery of raw materials? * Yes * No No. of respondent Yes No 4 26
13%
Yes No
87%
Out of 30 employees 4 employees complained about the late delivery of raw material.
42
CHAPTER 7 CONCLUSION
According to the study done on the feedback of questionnaire, data interpretation and analysis the results are as followsThe result shows that the Dinshaws dairy foods ltd. practices supply chain with the help of many suppliers. Meanwhile the company is managing its supply chain successfully. The company has a separate logistics and dispatch department. Dinshaws dairy foods ltd has a clear and sophisticated logistic plan. Operational activities and supply chain management activities of the Dinshaws dairy foods ltd are by the support of supply chain benchmarking. The company is planning to implement and practice the e-procurement, EDI plan strategically in future. Current supply chain management and IT activities of the company are going flawless and in future there is scope for better supply chain and distribution network. The current transportation and logistics management of the company is sufficient and is flexible enough so as to change the current policies if any. The study has shown us that there is some obstacles during handling and storage of dairy products which creates hurdle in SCM therefore should be eradicated.
43
44
CHAPTER 8 SUGGESTIONS
The company should start a home delivery where a particular household will order full range of products required by it over a period of time. For this the company could provide a deliveryman with cycle to reach the different houses.
In order to motivate the channel members it is also very essential for the company to increase the distributors for the hard selling items e.g. Dinshaws dahi (curd) where it faces competition from Haldiram & Amul.
Dinshaws should go in for exclusive outlets in at least all the shopping malls coming up these days and any location where footfalls are large in number. The advantages of this channel will be: i. Full range display ii. Convenience for distributors. iii. Easier to access new customers. iv. Easy to push impulse purchase products v. Brand building will be facilitated
In order to remain sensitive to market demand, it is essential for the company to have additional procurement options ready that will help company to cope up with the problem of less supply or shortage of raw milk.
In order to practice a better supply chain management Dinshaws should make use of updated/upgraded/latest ERP packages like MFG PRO Distribution strategies.
There are two main distribution strategies, which Dinshaws has very effectively used. 1. In first strategy include incentives like free deep freezers, discounts on bulk purchases.lr
45
2. Advertising campaign that reminds and persuades customers to buy ice cream supports 2nd strategy, Which is facilitated by price offs, which are frequently offered by the company. Route planning and optimization Load optimization For the dairies to remain competitive, they need to diversify their products through value addition by using simple and cost-effective methods of processing milk. Consideration should be given to processing of storable products such as ghee and cheese as these are processed and successfully supplied and distributed by dairies in other areas of India. The dairies need to establish strategically positioned milk collection centers with cold storage facilities to increase the quantity of milk they handle.
46
ANNEXURE 1 BIBLOGRAPHY 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.
47
ANNEXURE 2 QUESTIONNAIRE
Name of Employee Name of Company Address : . :. :. . Country Contact Person : Tel. : .
Position in company : E-Mail Sector Types Industry No of Employees : : Manufacturing : Food : Service Automotive Both Other (define)
Turnover 2010 :
1.How do you manage your supply chain? Close partnership with suppliers JIT supply Outsourcing Many suppliers Holding safety stock 2. How successful do you think is your company in managing its supply chain in general? * Not successful at all * Not successful * Somewhat successful * Successful * Very successful 3. Does your company have a separate logistics department? YES NO
48
5.What types of systems are currently in use in your company to support Supply Chain Management? Subcontracting 3PL Supply Chain Benchmarking Vertical integration 6. What types of systems do you plan to implement in the near future (within the next 2 years)? E-procurement EDI Outsourcing Subcontracting Plan strategically 7. How satisfied are you with the current public policy regarding SCM and IT? *Satisfied *Very satisfied *Same what satisfied Not satisfied 8. Is supply chain management having all the address of the developer branches of the company? Yes No
9. Rate the working strategies of supply chain management department on the basis of the current programs? * Outstanding * Excellent * Good * Average 10. Is the supply chain management department is having sufficient transportation? * Yes * Not sufficient
49
11. According to the current growth process of the organization, which of the following needs much attention and progress to boost the production? * Operational activities * Tactical activities * Current programming strategies
12. Choose the right option, where the supply chain department is facing problem in taking care of the raw material? * During storage * Packaging * Testing of packaging * Evaluation of defective raw material 13. How do you rate the delivery activity of the department? * Excellent * Very effective * Good * Average 14. Is there any case recorded by the supply chain department in which the production department complained late delivery of raw materials? * Yes * No
50