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A PROJECT REPORT

ON
SUPPLY CHAIN MANAGEMENT
BHUBANESWAR
A CASE STUDY OF OMFED

Submitted by
Tapas Kumar Mahanandia
Under the Guidance of
Dr.Rabindra Kumar Swain, M.Com.,
Faculty, P.G Department of Commerce
Utkal University
in partial fulfillment for the award of the degree
of

MASTER OF COMMERCE

DEPARTMENT OF COMMERCE
VANIVIHAR

UTKAL UNIVERSITY
BHUBANESWAR
1

DECLARATION

I do hereby declare that the project entitled Supply Chain Management


submitted by me as a partial fulfillment of the requirements for the degree of Master of
commerce, Utkal University in the course curriculum. It is the original piece of work
done by me under the guidance of PROF. Rabindra Kumar Swain as my faculty guide
and has not been submitted for the awards of any other degree elsewhere in full or in part.

Date:

Tapas Kumar Mahanandia

Place:

Roll no.13MCOM043
P.G. Dept of Commerce
Utkal University

CERTIFICATE

This

to

certify

that

the

project

work

entitled

SUPPLY

CHAIN

MANAGEMENT is a bonafide work done by Tapas Kumar Mahanandia. With partial


fulfillment of the requirement for the award of Master of Commerce by Utkal University
during the academic year 2013 2015.

GUIDE

Place-

(Dr. Rabindra Ku Swain)

Date-

ACKNOWLEDGEMENT

At the outset, I wish to express my sincere thanks to almighty for


showering his blessing on me to develop this project. I would like to acknowledge my
sincere thanks to Prof. Rabindra kumar swain, Faculty of commerce department,
Utkal University, Bhubaneswar for his excellent guidance and supervision for the
completion of this project successfully.
I am deeply indebted to the principal and H.O.D Dr. Probodh Kumar Hota , of
Master Of Commerce Vanivihar Utkal University , for enabling me to do this project.
I express my sincere thanks to Mr Basant Mishra, General Manager
(Marketing) of Omfed for according permission to carry out this study in his
esteemed organization. I would also like to thanks to the Marketing Manager N.R
Khadgan for valuable contribution to my project, authors, journals and websites for
providing us the related information to my projects subject.
Last but not the least I wish to thank my Parents who always believe me and have
faith in me in whatever I wished to do.

EXECUTORY SUMMARY
The Project has been done in The Bhubaneswar Co-operative Milk Producer
Union OMFED. The title of the project is Supply Chain Management.
The study Begins with a Companys 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 Supplying Performance. Some of the tools
used in Supply Chain analysis are regarding to:

TABLE OF CONTENTS

Page No.

Declaration

Certificate

Acknowledgement

Executory Summary

List of Tables

List of Graphs(charts)

10

Chapter 1:

INTRODUCTION

1.1

Introduction

11

1.2

Importance of Study

12

1.3

Need for Study

13

1.4

Research Gap Statement of the problem

13

1.5

Objective of the Study

14

1.6

Limitations of the Study

1.7Research Methodology

15

1.7.1Research Design
1.7.2Types of the data
1.7.3Questionary Construction
1.7.4 Defining Population
1.7.5 Sample Size
1.7.6 Field Work
1.7.7Period of Survey
1.8 Relevance of the Study
1.9 Chapter Plan

17

Chapter 2: Supply Chain management:


A theoretical prospective

20

2.1

GENERAL

22

2.2

23

Chapter 3: Profile of the Company

24

Chapter 4: Results and Discussion

38

4.1
4.2
Chapter 5: Summary of Findings, Suggestion & Conclusion

43

References

50

Bibliography

List of Tables
Table

Title

Page

1. Sex of the Respondents .33


2. Occupations of the Respondents.34
3. Do you Consume Omfed milk.35
4. If Yes how frequent do you consume 36
5. Milk Consumptions...37
6. Purchase Milk From.38
7. Leading Supplier in Mil 39
8. Price Of the Product .40
9. Other than milk which product Do you like to consume ..41
10. Why do prefer Omfed because of its .42
11. Weather the Omfed available sufficient in market .43
12. What the size of pack of Do you buy .44
13. What type of flavor do you prefer ..45
14. Are you Satisfied with the Omfed.46
15. Customer focus on Satisfaction level .47
16. Does Omfed milk is Good for your Health..48
17. Do You Find any Defects in Omfed milk 49

LIST OF Charts
Figure

Title

Page

1. Sex of the Respondents .33


2. Occupations of the Respondents...34
3. Do you Consume Omfed milk....35
4. If Yes how frequent do you consume36
5. Milk Consumptions...37
6. Purchase Milk From.38
7. Leading Supplier in Mil 39
8. Price Of the Product .40
9. Other than milk which product Do you like to consume..41
10. Why do prefer Omfed because of its.42
11. Weather the Omfed available sufficient in market .43
12. What the size of pack of Do you buy .44
13. What type of flavor do you prefer ..45
14. Are you Satisfied with the Omfed.46
15. Customer focus on Satisfaction level .47
16. Does Omfed milk is Good for your Health ..48
17. Do You Find any Defects in Omfed milk 49

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CHAPTER- I
INTRODUCTION
1.1SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM) is the process of planning,
implementing, and controlling the all operations of the supply chain as efficiently and
effectively. Supply Chain Management spans all movement and storage of raw materials,
work-in-process inventory, and finished goods from point-of-origin to point-ofconsumption.
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.

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1.2IMPORTANCE OF STUDY
Supply chain management is an essential element to managerial activity and
operational efficiency of the business. it applied to customer satisfaction and as well as
companys success it includes medical need operation, social need, any disastrous relief
operations any kind of emergency etc. it can help in improving quality of life. Because
vital role it plays in organization, if its employee provided better knowledge about SCM
strategy and importance of work then no doubt the success of company will reach to a
optimum level.
The supply chain management in todays is critical backbone of company and any
organization. Effective market discovery and abundant knowledge about current market
operations, availability of product at different locations holds a key to successful revenue
generation for the company depends upon the effectiveness of SCM. When a product is
introduced in the market through advertisement, the entire market and sell counter needs
to have the product at desirable time, where customers able to buy the product. Any delay
in making the product availability will result in fall in demand in product May leads to
disastrous effect. It depends upon proper transportation facilities and market channel of
distribution
Inventory management and proper control is another critical aspect of any
business organization. Any operation cost drivers may directly impact the balance-sheet
and bottom-line of the company. And every business has a sound and standard inventory
turnaround. The inventory turnaround refers to the numbers of inventory sold and
replaced (At Cost) by in period of 12 months. The effective turnaround of inventory
refers to good health of company.
Finished goods inventory held at many locations, distributors and
management remains with many third parties. A lot of inventory is canalize through a
proper medium of distribution network. Any loss of inventory results in loss of value so
proper inventory management through a proper way of supply chain management at each
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level of activity is indispensable. The following points resembles below the SCM
importance.
To gain insight of the study, about how SCM actually works in organization
To familiarized with various working pattern of department
To get knowledge about various functional head and its performance

Right from procurement of raw-material, inbound, outbound logistic


management.

Third party Service provider finished good handling

1.3NEED FOR STUDY


To identify the communication needs of supply chain.
To increase supplier performance
To improve and gain better control of supply chain.
To increase the role of technology in supply chain
To evaluate the performance of supplier
To analyze the various parameters that determines the choice of Consumer in
Omfed.
To Identify the Deviation in SCM and to take corrective measures

1.4RESEARCH GAP STATEMENT OF THE PROBLEM


Supply chain management must address the following problems:
1. Distribution Network Configuration
2. .Number and location of suppliers, production facilities, distribution centers,
warehouses and customers.
3. Distribution Strategy: Centralized versus decentralized, direct shipment, Cross
docking, pull or push strategies, third party logistics. Information: Integrate
systems and processes through the supply chain to share valuable information,
including demand signals, forecasts, inventory and transportation etc.
4. Inventory Management: Quantity and location of inventory including raw
materials, work-in-process and finished goods. Cash-Flow: Arranging the
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payment terms and the methodologies for exchanging funds across entities within
the supply chain.
5. Supply chain execution is managing and coordinating the movement of materials,
information and funds across the supply chain. The flow is bi-directional.

1.5 OBJECTIVE OF THE STUDY


Customer focus on supply management (OMFED) is made for special purpose to
improve the product and marketing function for consumer satisfaction.
To know about how many people to get aware about OMFED.
To find the competitors and analyze the methods for competition marketing.
How many people to consume OMFED in market
To get suggestion from public for further improvement
Why some people dont prefer OMFED and reason for non-consumption
Who is the main Customer and which satisfies them

1.6 LIMITATIONS OF THE STUDY


Due to lack of time, unable to collect more information from the Customers.
Some customers may afraid to give informations.
Illiterate customers are also given informations.
The whole population cannot be studied due to Selection of limited Sample

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1.7RESEARCH METHODOLOGY
1.7.1 RESEARCH DESIGN
The research design which was selected was narrative one. It narrates the whole
research in a simple manner.
1.7.2 TYPES OF DATA COLLECTED
Primary Data
Questionnaires are prepared and interview was conducted. Most of the
questions are consist of multiple choices. The questionnaires were conducted in English.
Generally 23 questions are prepared and asked to the customers.
Secondary Data
Secondary data was collected from Internets, various books, Journals, and
Company Records.
1.7.3 QUESTIONNAIRE CONSTRUCTION
In this Questionnaire Constructed on the basis of two types. There are
Multiple choice and close ended (Yes/ No) Questions.
1.7.4 DEFINING THE POPULATIONS
The Population or Universe can be Finite or infinite. The population is said
to be finite if it consist of a fixed number of elements so that it is possible to enumerate it
in its totality. So In this projects consist of finite population.
1.7.5 SAMPLE SIZE
About 50 sample are taken in OMFED

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1.7.6 FIELD WORK


The field works is done in OMFED, BHUBANESWAR
1.7.7 PERIOD OF SURVEY
The period of survey is from January to March, 2015.

1.8RELEVANCE OF THE STUDY


Relevance addresses whether the results of the study/apply to the setting of
interest to the decision maker. It addresses issues of external validity similar to the
population, interventions, comparators, outcomes, and setting framework from evidence.
There is no correct answer for relevance. Relevance is determined by each decision
maker, and the relevance assessment determined by one decision maker will not
necessarily apply to other decision makers. Individual studies may be designed with the
perspective of particular decision makers in mind. The relevance in this section about
how supply chain management doing its work effectively, and what is basis of working,
how involvement of each from starting point to end each management of supply-chain
detail process works. How other works and active participation else were carrying on. On
the basis of the study how relevance address several issues how different activity are
taken and how these process were carried on these are carrying very important process
details and the effective mechanism is governing this profile is carried on the basis

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CHAPTER-2
SUPPLY CHAIN MANAGEMENT
A THEOTITICAL PROSPECTIVE
Supply chain management (SCM) is the process of planning, implementing, and
controlling the operations of the supply chain as efficiently as possible. Supply Chain
Management spans all movement and storage of raw materials, work-in-process
inventory, and finished goods from point-of-origin to point-of-consumption.
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

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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
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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.
Supply chain management
Organizations increasingly find that they must rely on effective supply chains, or
networks, to successfully compete in the global market and networked economy. In Peter
Drucker's (1998) management's new paradigms, this concept of business relationships
extends beyond traditional enterprise boundaries and seeks to organize entire business
processes throughout a value chain of multiple companies.
During the past decades, globalization, outsourcing and information technology have
enabled many organizations such as Dell and Hewlett Packard, to successfully operate
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solid collaborative supply networks in which each specialized business partner focuses on
only a few key strategic activities (Scott, 1993). This inter-organizational supply network
can be acknowledged as a new form of organization. However, with the complicated
interactions among the players, the network structure fits neither "market" nor
"hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts
different supply network structures could have on firms, and little is known about the
coordination conditions and trade-offs that may exist among the players. From a system's
point of view, a complex network structure can be decomposed into individual
component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network
concentrate on the inputs and outputs of the processes, with little concern for the internal
management working of other individual players. Therefore, the choice of internal
management control structure is known to impact local firm performance (Mintzberg,
1979).
In the 21st century, there have been a few changes in business environment that have
contributed to the development of supply chain networks. First, as an outcome of
globalization and proliferation of multi-national companies, joint ventures, strategic
alliances and business partnerships were found to be significant success factors,
following the earlier "Just-In-Time", "Lean Management" and "Agile Manufacturing"
practices. Second, technological changes, particularly the dramatic fall in information
communication costs, a paramount component of transaction costs, has led to changes in
coordination among the members of the supply chain network (Coase, 1998).
Many researchers have recognized these kinds of supply network structure as a new
organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual
Corporation", Global Production Network", and "Next Generation Manufacturing
System". In general, such a structure can be defined as "a group of semi-independent
organizations, each with their capabilities, which collaborate in ever-changing
constellations to serve one or more markets in order to achieve some business goal
specific to that collaboration" (Akkermans, 2001).

Supply chain business process integration


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Successful SCM requires a change from managing individual functions to


integrating activities into key supply chain processes. An example scenario: the
purchasing department places orders as requirements become appropriate. Marketing,
responding to customer demand, communicates with several distributors and retailers,
and attempts to satisfy this demand. Shared information between supply chain partners
can only be fully leveraged through process integration.
Supply chain business process integration involves collaborative work between buyers
and suppliers, joint product development, common systems and shared information.
According to Lambert and Cooper (2000) operating an integrated supply chain requires
continuous information flows, which in turn assist to achieve the best product flows.
However, in many companies, management has reached the conclusion that optimizing
the product flows cannot be accomplished without implementing a process approach to
the business. The key supply chain processes stated by Lambert (2004) are:
Customer relationship management
Customer service management
Demand management
Order fulfillment
Manufacturing flow management
Supplier relationship management
Product development and commercialization
Returns management
One could suggest other key critical supply business processes combining these processes
stated by Lambert such as:

Customer service management


Procurement Product development and commercialization Manufacturing flow
management/support

Physical

distribution

measurement
a) Customer service management process
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Outsourcing/partnerships

Performance

Customer Relationship Management concerns the relationship between the organization


and its customers. Customer service provides the source of customer information. It also
provides the customer with real-time information on promising dates and product
availability through interfaces with the company's production and distribution operations.
Successful organizations use following steps to build customer relationships:
determine mutually satisfying goals between organization and customers
establish and maintain customer rapport
produce positive feelings in the organization and the 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 winwin 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.
c) Product development and commercialization
Here, customers and suppliers must be united into the product development process, thus
to reduce time to market. As product life cycles shorten, the appropriate products must be
developed and successfully launched in ever shorter time-schedules to remain
competitive. According to Lambert and Cooper (2000), managers of the product
development and commercialization process must:
coordinate with customer relationship management to identify customer-articulated
needs;
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select materials and suppliers in conjunction with procurement, and


develop production technology in manufacturing flow to manufacture and integrate into
the best supply chain flow for the product/market combination.
d) Manufacturing flow management process
The manufacturing process is produced and supplies products to the distribution channels
based on past forecasts. Manufacturing processes must be flexible to respond to market
changes, and must accommodate mass customization. Orders are processes operating on
a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow
process lead to shorter cycle times, meaning improved responsiveness and efficiency of
demand to customers. Activities related to planning, scheduling and supporting
manufacturing operations, such as work-in-process storage, handling, transportation, and
time phasing of components, inventory at manufacturing sites and maximum flexibility in
the coordination of geographic and final assemblies postponement of physical
distribution operations.
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
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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
Supply chain management components integration
The management components of SCM
The SCM components are the third element of the four-square circulation framework.
The level of integration and management of a business process link is a function of the
number and level, ranging from low to high, of components added to the link (Ellram and
Cooper, 1990; Houlihan, 1985). Consequently, adding more management components or
increasing the level of each component can increase the level of integration of the
business process link. The literature on business process reengineering, buyer-supplier
relationships, and SCM suggests various possible components that must receive
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managerial attention when managing supply relationships. Lambert and Cooper (2000)
identified the following components which are:
1) Planning and control
2) Work structure
3) Organization structure
4) Product flow facility structure
5) Information flow facility structure
6) Management methods
7) Power and leadership structure
8) Risk and reward structure
9) Culture and attitude
However, a more careful examination of the existing literature will lead us to a
more comprehensive structure of what should be the key critical supply chain
components, the "branches" of the previous identified supply chain business processes,
that is what kind of relationship the components may have that are related with suppliers
and customers accordingly.
Bowersox and Closs states that the emphasis on cooperation represents the
synergism leading to the highest level of joint achievement (Bowersox and Closs, 1996).
A primary level channel participant is a business that is willing to participate in the
inventory ownership responsibility or assume other aspects financial risk, thus including
primary level components (Bowersox and Closs, 1996).
A secondary level participant (specialized), is a business that participates in channel
relationships by performing essential services for primary participants, thus including
secondary level components, which are supporting the primary ones. Also, third level
channel participants and components may be included, that will support the primary level
channel participants, and which are the fundamental branches of the secondary level
components.
Consequently, Lambert and Cooper's framework of supply chain components, does
not lead us to the conclusion about what are the primary or secondary (specialized) level
supply chain components ( see Bowersox and Closs, 1996, p.g. 93), that is what supply
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chain components should be viewed as primary or secondary, and how should these
components be structured in order to have a more comprehensive supply chain structure
and to examine the supply chain as an integrative one (See above sections 2.1 and 3.1).
Baziotopoulos reviewed the literature to identify supply chain components.
Based on this study, Baziotopoulos (2004) suggests the following supply chain
components (Fig.8):
For customer service management: Includes the primary level component of
customer relationship management, and secondary level components such as
benchmarking and order fulfillment.
For product development and commercialization: Includes the primary level
component of Product Data Management (PDM), and secondary level components such
as market share, customer satisfaction, profit margins, and returns to stakeholders.
For physical distribution, Manufacturing support and Procurement: Includes
the primary level component of enterprise resource planning (ERP), with secondary level
components such as warehouse management, material management, manufacturing
planning, personnel management, and postponement (order management).
For performance measurement: This includes the primary level component of
logistics performance measurement, which is correlated with the information flow facility
structure within the organization. Secondary level components may include four types of
measurement such as: variation, direction, decision and policy measurements. More
specifically, in accordance with these secondary level components total cost analysis
(TCA), customer profitability analysis (CPA), and Asset management could be concerned
as well. In general, information flow facility structure is regarded by two important
requirements, which are a) planning and Coordination flows, and b) operational
requirements.
For outsourcing: This includes the primary level component of management
methods and the company's cutting-edge strategy and its vital strategic objectives that the
company will identify and adopt for particular strategic initiatives in key the areas of
technology information, operations, manufacturing capabilities, and logistics (secondary
level components).

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CHAPTER- 3
3.1. PROFILE OF THE COMPANY
The Odisha State Cooperative Milk Producers Federation also known
as OMFED is one of the Milk Federation affiliated to the National Dairy Development
Board (NDDB), situated at Bhubaneswar, the state capital of Odisha. It is an apex level
Milk Producers' Federation in Orissa registered under Cooperative Society Act
1962. [1] Omfed was established based on AMUL pattern under operation flood
programme

of National

Dairy

Development

Board (NDDB),

for

promoting,

production, procurement, processing and marketing of milk & milk products initially in
undivided districts of Puri, Cuttack, Dhenkanal, Keonjhar.

Orissa State Cooperative Milk Producers Federation .(Omfed) is a Private Sector


Organisation that offers services in Food Processing/ Beverages with Annual Total
Turnover of 250-500 Crs and with Employee Strength of 251-500 Employees.
OMFED's main activities includes promoting, production, procurement, processing and
marketing of milk & milk products for economic development of the rural farming
community in Orissa.
3.1.1ORIGIN AND GROWTH
It is a point of origin for healthy benefits for its customers the Omfed came to
existence as Odishas Milk Supply Society registered as Co-operative Society in
beginning. Started in a tiny shed its primary objective and focus was to supply
milk to the urban consumers
As time passed the supply society has diversified its activity from consumer to
producers, and concentrated in increasing the milk production, and by increasing
27

various products of milk, by giving various assistance / incentives to the milkproducing farmers.
This started procuring milk from the village producers on quality basis from 1962
onwards. The Milk Union has also set up a Dairy Plant with 10,000 ltrs capacity
for processing. By Surveying in villages about various cattle breed and
information about left-out milk is collected, if it is found that in any village which
having left out milk more than 50 liters then meeting is fixed for further process.
And by District milk society forms a group milk producing society consisting of
30 milk producing farmer.
Thus Omfed was committed to improve the economic and social uplift of the rural
farming / milk producing community and supplying the urban consumers with
good quality milk
It is the only institution is extending its activity more every month to rural
economy in cash for the benefit of farming community, by way of Milk Purchase.

3.1.2 Basic amenity processing details of Omfed in brief


It follows Anand pattern like alum followed earlier it consists of 3 tire structure says
I) Society II) Union iii) Federation
Omfed is an apex body it collects milks from union and process it and market it. All
those activity done in Omfed level.
ii) The milk are collected only through the members of the society.
Let us say there are 5 society are there milk collection is done in union level and goes
to district level members with milk collection societies are formed.
iii) Suppose I recent area going to 5 k.m. no of society are
There (They have society and milk is collected from the members)
Now questions comes how milk would be collected (milk collection is done in the
union level) every district has a milk co-operative union. The union use have a milk
collection tanker through which milk is collected and cooled or chilled down to
4Centigrade in BMC (Bulk milk Cooler).The Capacity varies from 500 to 5000 ltr of
BMC. The tanker goes to societies for collection for milk
28

iv)Now let suppose milk is collected from 1 society at 7 o clock in another at 8 o


clock and my reaches at 10 o clock. If the milk is collected in this process how long
the milk is going to stay. In this process milk is collected and reaches by the 3-4 hours
and the maximum the milk can be stay up to 4-5 hours in normal temperature.
v) When the milk is chilled that increases the mike potentiality for more few hour.
Now a tanker say 2000 lit capacity called BMC in which the milk is collected is
downloaded to the diary plant.
vi) Now question comes how the milk is collected and which type of standard is
maintained that is important factor the standardize is of 4% fat and 8%snl (solid non
liquid) it is the minimum standard is set for milk and each farmer is paid according to
the prescribes standard. The paying output varies according to the paying output
measured method. Before colleting each farmers milk is tested in the society what is
going to be collected.
vii) After all these are taken to the diary plant the diary plant would also check entire
quality of the milk by sample test. There are different BMC. Society are there. If there
is farther place to here, so the thing is that milk is highly perishable item so is should
bring at their district level diary plant. When they bring there to diary of plant each
and every thing governing checked regarding standard of the standard of the milk in
market standard minimum 3% fat 8.5% snl pfa prevention of food adulteration act
was set by minimum standard now it is (FSSSAI) Food Safety Standard Authority of
India. To need milk standard 3% & 8.5 snl and milk federation is not allowed or cant
process below this standard . This is to be maintained or hard to be done.
viii) 1.Double toned milk 1.5% fat and 9.5% snl 2.full cream milk (FCM) 6%fat &
9% snl 3. Skimmed milk if there mainly low fat 0.5% and 9% snl these are the
standard upon basis of which milk is categorized for quality assurance for milk level
that is done at society level for milk tested at there. At society what over milk is
collected is basing on that standard and among there on it would have to be paid.
ix) Processing- pasteurized milk process of pasteurized is done to reduce the harmful
effect of milk it is done to kill the Bactria in the milk. It boiled up to 84% centigrade
after the milk is processed then it goes for final action and Supply Chain management
Starts here.
29

x) product are 1 sweet curd 2 plain curd 3 plain curd and such type of product are
created keeping in view of demand factor and question comes that how to know the
demand factor it is an important in deciding milk product are highly perishable
product we cant keep those product for 1 month or 1 year. Say how much quantity is
actually demanded and for the concerned distributor.
xi)

To The distributor the things goes directly from the manufacturers to the

customers. Omfed now marketing 2.3 lack liters per day milk for average daily
consumption requirement. There are total 9 diary plant in Odisha. Present diary plant
is which is chosen for study purpose is located in the Bhubaneswar Sailashree vihar .
2.5 liter capacity diary plant. The average daily requirement depends upon seasonal
month it varies according to particular situation. Quantity demands falls in rainy and
summer season and other reason are also responsible for that.
xii) During short period April to August there is a heavy demand I round shift of milk
product . the company plans to get in to market to raise market share of product in
Sept-march in this product rises about 10 to 20 percent of market share. And omfed
now planning all round development, now omfed having 80 to 90 percent of product
in the market share. There are 650 to 700 outlets haing Odisha milk diary association
and product supply management as per the demand. The omfed does not supply milk
on credit basis rather it takes on receiving cash and supply milk to the consumer

3.2 ACTIVITES OF DIFFERENT UNITS OF THE MILK UNION


A. MILK PROCURMENT AND INPUT WING

30

Omfed plant and head quarter is presently operating in the Bhubaneswar with
3906 affiliated functional Dairy Co-operative Societies.
There are 2,46,410 Cattle owners who became members in the Dairy Cooperative Societies at villages and supplying milk to Omfed
At Present there are 9 Diary plant Functionally operating throughout odisha
Milk Supplying members are paid fortnightly in cash with remunerative milk
price and inputs in kind.
The Primary responsibility of procurement and input section is to procure clean
and quality milk from the village cattle owners and carryout milk production
enhancement services.
To achieve this objective, the procurement & Input wing is conducting various
programmes like Clean Milk Production and Quality Milk Procurement at Dairy
Co-operative Societies.

B. MILK PROCESSING
The present handling capacity of the Bhubaneswar Dairy plant is 2.5lack ltrs per
day. However with prudent technical manpower and top managements support an
average of 2.3lack ltrs of milk is handled per day and 1.8lack ltrs of milk handled
in peak.
3 varieties of milk namely Toned Milk, Standardised Milk & Premium Milk are
produced as per the consumer requirements. The daily consumer demand is met
fully. Present demand is 1.3lack liters to 2.3lack liters per day.
31

From the Early Stage, the Dairy is supplying 75,000 liters of standardized milk to
society.
Besides milk processing and grading, the Dairy is equipped to produce ghee and
of Khoa (milk peda) monthly. The OMFED ghee and khoa are much sought after
products in the market.
The Dairy is producing 1000-1500 pockets of flavored milk and 500-1000 of
butter milk every day and sells in Bhubaneswar 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 organoleptic ally 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 from 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)
32

Day in and Day out maintaining the quality of milk receives the top priority.
D. MARKETING
The Bhubaneswar Co-operative Milk Producers Union is operating in the
Bhubaneswar market, selling three different varieties of milk catering to the
different segments of the market, under its brand name Omfed.
Omfed is the number one milk brand in the Bhubaneswar town. Though there are
many private players in the market, Omfed is the major market shareholder. A
market survey finding indicates that the present market share of Omfed is around
90%.
The present average market throughput is 2.3lakh ltrs per day and the sales is in
the market.
To cater the urban population, 650-700 retail outlets are operated by retail sales
agents. The retail outlets are supplied with milk through a network 25 milk
distribution routes daily in the morning and the evening.
Besides, the Union is also running 9 Omfed milk parlours to sell milk and milk
products. Milk is made available to the urban consumers. 24 hours a day through
5 such parlours.
E. CATTLE FEED
Omfed owns a Cattle Feed Plant of 100 Ton capacity per day c in Radha Damador
in Cuttack
Compounded Cattle Feed is produced with cost effective ingredients and supplied
to the members through Dairy Co-operative Societies on nonprofit motive.
In the year 2007-08 41,380 MT Cattle feed In Addition with Minerals of 134 MT
and In the Year 2008-09 42,915 In addition 93 MT Minerals were provided to
Farmers.
Batch wise the Cattle feed is being tested its quality regularly.
The balanced compounded Cattle feed produced in the Cuttack Cattle Feed Plant
is proved to be effective for animal health and quality milk production.
33

Due to Increasing Demand for the Cattle Feed Government planning to Increasing
Daily capacity Production of the Plant to 100 to 200.

F. ADMINISTRATION
The Orissa state Cooperative Milk Producers' Federation Ltd. is controlled by a
Board Of Directors which consists of Chairman of all affiliated Dist. Cooperative
Milk Producers" Unions, three nominees of Government of Orissa, a nominee
from the National Dairy Development Board and Managing Director of the
Omfed (Who is the ex officio member). The Chairman of the BOD is elected
amongst the members of the Board. The post of Chairman of the Federation is
honorary.
No of Employees 251-500
Turnover in Crs 250-500 Crs
Sector- Private Sector

34

SL.NO
.
MILESTONES

YEARS

Established in the Village level Primary Co-operative Society

1978

Foundation stone laid (Registration)

1980

Start To operate Omfed


1981
Orissa State Cooperative Milk Producers' Federation Foundation Stone

laid Diary plaint

1985

Took Over OMPAC

1988

Cattle Feed Plant Capacity 100-200 MT

----

Dairy Plant Expanded 75,000 to 2,00,000 ltrs capacity

---

Coop. Development Programme implemented

1992

Expansion of Dairy Plant to 2.3lakh ltrs Capacity

-----

10

Internet based Information System (iDIS) implemented

2000&2001

35

CHAPTER-4
4.0 Analysis of Data
4.1 PERCENTAGE METHOD - GENERAL INFORMATION
TABLE: 4.1.1
SEX OF THE RESPONDENT
S.NO
1
2

OPTIONS
MALE
FEMALE

NO OF
RESPONDENTS
35
15

PERCENT
70.0
30.0

50

100.0

TOTAL
Source: Primary Data

Inference: 1) From the above table and below chart Represents Sex (male and female)
who are Respondents to the questionnaire.
2)From the above table it is inferred that out of 50, 70% of the Respondents
are male. Remaining 30 % of the respondents are female.
CHART: 4.1.1

36

TABLE 4.1.2
OCCUPATIONS OF THE RESPONDENTS
S.NO
1
2
3
4

OPTIONS
Business
Employee
Student
Farmer
Total
Source: Primary Data

NO OF
RESPONDENTS PERCENT
5
10.0
21
42.0
22
44.0
2
4.0
50
100.0

Inference: 1) From the above table and below chart represents no of respondent are form
Business , Employee, Students, Farmer
2.From the above table it is inferred that out of 50 Respondents 44% of the
Respondent occupations are students 42 % of the respondents occupations are Employee,
10 % respondents Occupations are Business and finally 4% Occupations are Farmers.

CHART: 4.1.2

37

TABLE: 4.1.3
DO YOU CONSUME OMFED MILK
S.NO
1
2

OPTIONS
Yes
No
TOTAL

NO OF
RESPONDENTS
40
10
50

PERCENT
80.0
20.0
100.0

Source: Primary Data


Inference ;

1) From the above table and below chart Represent the number of

respondents Consume Omfed milk


2)it is inferred that out of 50 Respondents, 80% of the Respondents
consume Omfed milk , 20 % of the Respondents does not consume Omfed milk.
CHART: 4.1.3

38

TABLE: 4.1.4
IF YES HOW FREQUENT DO YOU CONSUME
S.NO
OPTIONS
1
Weekly Once
2
Weekly Twice
3
Weekly Thrice
4
Regularly
TOTA
L
Source: Primary Data
Inference;

NO OF
RESPONDENTS PERCENT
15
30.0
4
8.0
6
12.0
25
50.0
50

100.0

1) From the above table it Represents the how frequent do the consumers

consumes the milk.

39

2)From the above table it is inferred that out of 50 Respondents, 50% of


the Respondents consume regularly, 30 % of the Respondents consume weekly once,
12% Consumes weekly thrice and 8% Consumes weekly Twice

CHART: 4.1.4

TABLE: 4.1.5
MILK CONSUMPTION
S.NO
1
2
3

OPTIONS
Whether you will go in search of
your preferred brand.
You consume what ever brand
available from where you
consume
You will not consume if your
preferred brand is not available
TOTAL
Source: Primary Data

NO OF
RESPONDENTS

PERCENT

23

46.0

20

40.0

14.0

50

100.0

Inference: 1) From the above table and below chart represents weather consumer go for
prefer brand or available brand in market.
40

2)From the above table it is inferred that out of 50 Respondents, 46% of the
Respondents search for preferred brand regularly, 40 % of the Respondents consume
What ever brand available, and 14% will not consume if preferred brand is not available
in the market.

CHART: 4.1.5

TABLE: 4.1.6
PURCHASE MILK

S.NO
1
2
3
4

NO OF
RESPONDENTS

PERCENT

15

30.0

11

22.0

17

34.0

14.0

50

100.0

OPTIONS
From grocery
shop
From Omfed
Parlours
From local
merchant
From other
sources
Total
Source: Primary Data

41

Inference: 1) The above table and below chart Represents the number of respondents
where do they purchase omfed milk and its products.
2)From the above table it is inferred that out of 50 Respondents, 30% of the
Respondents purchase milk from grocery shop, 22 % of the Respondents purchase milk
from parlour,34% purchase from local merchant and rest 14% purchase from other

CHART: 4.1.6

sources

TABLE: 4.1.7
LEADING SUPPLIER
S.NO
1
2

OPTIONS
Yes

NO OF
RESPONDENTS
44

PERCENT
88.0

No

12.0

TOTAL

50

100.0

Source: Primary Data

42

Inference:

1) From the above table it is inferred that out of 50 Respondents,

88% of the Respondents Says Omfed is a leading supplier, 12 % of the Respondents Says
Omfed is not leading supplier

CHART: 4.1.7

TABLE: 4.1.8
PRICE
S.NO OPTIONS
1
High
2
Low
3
Normal
4
Very low
TOTAL

NO OF
RESPONDENTS
13
15
20
2
50

Source: Primary Data

43

PERCENT
26.0
30.0
40.0
4.0
100.0

Inference:

1) The above table represents the consumer opinion about the omfed price

whether it is high, low or very low.


2)From the above table it is inferred that out of 50 Respondents 40% of the
Respondents says Price are normal, 30 % of the Respondents says price is low and 26%
of respondents say Price are very High and rest 4%says price is very-low.

CHART: 4.1.8

TABLE: 4.1.9
OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO
CONSUME
S.NO
1
2
3
4

OPTIONS
Ghee
Khoa
Paneer
Curd
TOTAL

NO OF
RESPONDENTS
18
14
9
9
50

Source: Primary Data


44

PERCENT
36.0
28.0
18.0
18.0
100.0

Inference: 1) The above table displays the other products of omfed which often
consumer consumes.
2)From the above table it is inferred that out of 50 Respondents,36% of the
Respondents consume Ghee, 28 % of the Respondents consume Khoa, 18% consumes
paneer and rest 18% Consumes Curd.
CHART: 4.1.9

TABEL: 4.1.10
WHY DO PREFER OMFED BECAUSE OF ITS
S.NO
1
2
3
4

NO OF
OPTIONS RESPONDENTS
Price
10
Quality
24
Brand name
7
All the
9
above
TOTAL
50

Source: Primary Data

45

PERCENT
20.0
48.0
14.0
18.0
100.0

Inference:

1) This table and below chart implies that why people like to buy or prefer

Omfed more than any other product.


2) From the above table it is inferred that out of 50 Respondents,48% of
the Respondents prefer Quality, 20 % of the Respondents prefer Price,14% of
respondents prefer Brand name and rest 18% prefer all of its quality.

CHART: 4.1.10

TABEL: 4.1.11
WHETHER THE OMFED IS AVAILABLE SUFFICENT IN MARKET

S.NO
1
2

NO OF
OPTIONS RESPONDENTS
Yes
39
No
11
TOTAL

50

Source: Primary Data


46

PERCENT
78.0
22.0
100.0

Inference:

1)From the above table it is inferred that out of 50 Respondents.78% of the

Respondents Says Omfed is Sufficiently available in market , 22% Respondents Says


Omfed not Sufficiently available in market.

CHART: 4.1.11

TABLE: 4.1.12
WHAT IS THE SIZE OF THE PACK DO YOU BUY

S.NO OPTIONS
1
500ml
2
1ltr

NO OF
RESPONDENTS
44
06

PERCENT
88.0
12.0

50

100.0

Total
Source: Primary Data
Inference:

1) From the above table and below chart it is inferred that out of 50

Respondents.88% of the Respondents buys 500 ltr, and 12 % Respondents buys 1 lit of
omfed milk.

CHART: 4.1.12
47

TABLE: 4.1.13
WHAT TYPE OF FLAVOUR DO YOU PREFER
S.NO
1
2

OPTIONS
Special
Genaral

NO OF
RESPONDENTS
36
14

PERCENT
72.0

Total

50

100.0

28.0

Source: Primary Data


Inference:

1) From the above table and below chart it is inferred that out of 50

Respondents.72% of the Respondents Prefers Special Milk and 28 % Respondents


prefers General Flavors of milk.

CHART: 4.1.13

48

TABLE: 4.1.14
ARE YOU SATISFIED WITH THE OMFED
S.NO
1
2

OPTIONS
Yes
No

NO OF
RESPONDENTS PERCENT
43
87.0
07
13.0

Total

50

100.0

Source: Primary Data


Inference: 1) From the above table it is inferred that out of 50 Respondents.87% of the
Respondents Satisfied with the Omfed, and 13 % Respondents do not satisfied with the
Omfed.

CHART: 4.1.14

49

TABLE: 4.1.15
CUSTOMER FOCUS ON SATISFACTION LEVEL
S.NO
1
2
3
4

OPTIONS
Highly satisfied
Satisfied
Neutral
Dissatisfied
TOTAL
Source: Primary Data

NO OF
RESPONDENTS
15
19
7
9
50

PERCENT
30.0
38.0
14.0
18.0
100.0

Inference: 1) The above table and below chart displays the level of satisfaction of
consumer by using the omfed milk and its others products.

50

2)From the above table it is inferred that out of 50 Respondents.38% of the Respondents
just satisfied, 30 % Respondents are highly satisfied, 14% Neutral and Rest 18%
Dissatisfied.

CHART: 4.1.15

TABLE: 4.1.16
DOES OMFED MILK IS GOOD FOR YOUR HEALTH

S.NO OPTIONS
1
Yes
2
No

NO OF
RESPONDENTS
31
19

PERCENT
62.0
38.0

50

100.0

Total
Source: Primary Data

Inference: 1)From the above table and below chart it is inferred that out of 50
Respondents.62% of the Respondents Says Omfed is good for health, and 38 %
Respondents says Omfed is not good for health..

51

CHART: 4.1.16

TABLE: 4.1.17
DO YOU FIND ANY DIFFECTS IN OMFED MILK
S.NO
1
2

OPTIONS
Yes
No

NO OF
RESPONDENTS
07
43

PERCENT
13.0
87.0

Total

50

100.0

Source: Primary Data


Inference: 1) From the above table it is inferred that out of 50 Respondents.87% of the
Respondents Do not find any defect in Omfed, and 13 % Respondents says Omfed is
diffective

CHART: 4.1.17
52

CHAPTER V
SUMMARY OF FINDINGS , SUGGESSTION AND CONCLUSIONS
5.1 FINDINGS OF STUDY

70% belongs to male, 30 %belongs to female

44% of the respondent occupations are students 42% of the respondents


occupations are Employee.

80% of the respondents consume Omfed milk. Remaining 20 % of the


peoples consume other product.

50% of the respondents consume Omfed milk regularly, 30 % of the


Respondents consume Omfed milk weekly once.

53

30% of the respondents purchase milk from grocery shop, 22 % of the


respondents purchase milk from parlor
46% of the respondents search for preferred brand regularly, 40 % of the
Respondents consume whatever brand in market.

88% of the Respondents responds that leading supplier are Omfed milk, 12 %
of the Respondents are other leading supplier

40% of the respondents Says price are normal, 30 % of the respondents Says
price are low.
Other than milk, 36% of the respondents consume Ghee, 28 % of the
respondents consume Paneer.
48% of the respondents prefer Quality of Omfed, 20 % of the Respondents
prefer Price.
78% Says Omfed is sufficiently available in market and 22% Says Omfed is
not sufficiently available in market.
88% Buys 500 ltr milk and 12% buy 1 liter milk.
72% Prefer Special milk of Omfed and rest 28% is prefer general milk.
87% Satisfied with omfed & 13% not Satisfied with omfed.
Satisfaction level --38% of the Respondents are satisfied, 30 % Respondents
are highly satisfied
62% Says Omfed is good for Health and 38% Says Omfed is not good for
health.
54

87% of the Respondents have no defects, 13 % Respondents have defects in


Omfed milk

5.2. SUGGESTIONS & RECOMMENDATIONS

The suggestions are gathered from public to improve the Omfed


product according to customer focus.
They can improve their brand image in the presence of customer by
demonstration.
They

have to improve their supply chain process for an effective

utilization of products among customers.


They have to make awareness about the product among people by
advertisements.
They have to focus not only on milk but also in other products like
Curd, Ghee ,and Khoa to improve their market status.

5.3CONCLUSION
Customer Focus will help to learn customer buying attitude. In Omfed 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.

55

The study has been conducted at Chandraskeksharpur. The company has


become a leading in milk products in Bhubaneswar
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
informations from the respondents. After gathering the informations, 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.

BIBLOGRAPHY: www.omfed.com
www.google.com\

http://en.wikipedia.org/wiki/Orissa_State_Cooperative_Milk_Pro
ducers'_Federation

References
Omfed journal books and magazines

56