MMPP1

SYNOPSIS
ON
“A STUDY ON SUPPLY CHAIN MANAGEMENT
PROCESS OF DAIRY PRODUCTS IN DEHRADUN
CITY”

SUBMITTED BY:
SACHINDRA SAINI
EN. NO:- 2108258663
MBA (OPERATION)

PROJECT GUIDE:
DR. PUNEET SAXENA

SCHOOL OF MANAGEMENT STUDIES

INDIRA GANDHI NATIONAL OPEN UNIVERSITY,
MAIDAN GARHI, NEW DELHI - 110068
 CONTENTS

 INDUSTRY PROFILE

 COMPANY PROFILE

 REVIEW OF LITERATURE

 RATIONALE OF THE STUDY

 STATEMENT OF THE PROBLEM

 OBJECTIVE OF THE STUDY

 RESEARCH METHODOLOGY

 LIMITATIONS OF THE STUDY

 BIBLIOGRAPHY
 INTRODUCTION

SCM and logistics management, the definitions made by the Council of Supply Chain
Management Professionals, CSCMP. SCM is defined as “ supply chain management
encompasses the planning and management of all activates involved in sourcing and
procurement, conversion, and all Logistics Management activities. Importantly, it also included
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service provider, and customer.

In essence, supply chain management integrates supply and demand management within and
across companies “supply chain encompass the companies and the business activities needed to
design RFDn, make, deliver, and use a product or service. Business depends on their supply
chains to provide them with what they need to survive and thrive. Every business fits into one or
more supply chains and has a role to play in each of them. The pace of change and the
uncertainty about how markets will evolve has made it increasingly important for the companies
to be aware of the supply chains they participate in and to understand the roles that they play.

Those companies that learn how to build and participate in strong supply chains will have
substantial competitive advantages in their markets. Supply chain management is the
coordination of production, inventory, location, and transportation among the participants in
supply chain to achieve the best mix of responsiveness and efficiency for the market being
served. There is a difference between the concept of supply chain management and the
traditional concept of logistics. Logistics typically refers to activities that occur within the
boundaries of single organization and supply shins refer to networks of companies that work
together and coordinate their action to deliver a product to market.

Also traditional logistics focuses its attention on activities such as procurement, distribution,
maintenance, and inventory management. Supply chain management acknowledges all of
traditional logistics and also includes activates such as marketing, new product development,
finance, and customer service. In the wider view of supply chain thinking, these additional
activities are now seen as part of work needed to fulfill customer requests. Effective supply chain
management requires simultaneous improvement in both customer service level and the internal
operating efficiencies of the companies in the supply chain. Customer service at its most basic
level means consistency high order fill rates, high on-time delivery rates, and a very low rate of
product returned by customer for whatever reason. Internal efficiency for organizations in a
supply chain means that these organizations get an attractive rate of returns on their investments
in inventory and other assets and those they find ways to lower their operating and sales
expenses.

Supply chain diagram and explanation

The physical flow of goods takes place from the factory to either the depot or to the
carrying and forwarding agent, depending upon the geographic distance and the location of the
Depot. The transport & logistics for this is outsourced to third party vendors which are under
Transport Corporation of India (TCI). Depending upon the demand these goods have, they flow
from Depot or the C&F agent to the dealer and their network. In case of high profile dealers, the
dealer can himself take the physical delivery of goods directly from the manufacturing plant. The
dealer, at the last juncture, caters ASC, RSO, Sub Dealer & its own branch.
INDIAN DAIRY INDUSTRY

The Indian dairy industry has been through an evolution right from the British era till today. It
has come a long way over the years from a milk production volume of 210.7 million tons in
2011-12 to 527.3 million tons in 2021. Steadily and firmly, it has cruised to become numerouno
in the list of milk producing countries and the smallholder milk producers have scripted this
success story. Today, the Indian Dairy industry stands at a mammoth size of US$ 70 billion.
Given the highest mulch bovine population of 115.487 million in the world, India exhibits
tremendous potential to further strengthen its position in the world dairy market. The operation
flood program promoted and implemented by the National Dairy Development Board (NDDB)
has been instrumental in bringing about a white revolution in India. Changing lifestyle, feeding
habits and urban culture has somewhat effected the transition of the Indian dairy Industry into a
more of a demand driven, highly diversified and exciting business proposition. The country
accounts for more than 15 per cent of world’s total milk production and is also the world’s
largest consumer base of dairy products, consuming almost all of its own milk production.

Dairying has been regarded as one of the activities that could contribute to alleviating the
poverty and unemployment especially in the drought‐prone and rain‐fed areas. In India, about
three‐fourth of the population live in rural areas and about 38 per cent of them are poor.
Therefore among these people, as well as the large vegetarian segment of the country’s
population, dairy products provide a critical source of nutrition and animal protein to millions of
people in India. Prior to year 2000, India was not noticed by most international dairy companies,
as the country was neither an active importer nor an exporter of dairy products. Currently, the
Indian dairy market is growing at an annual rate of 7 per cent. Despite the increase in production,
a demand supply gap has become imminent in the dairy industry due to the changing
consumption habits, dynamic demographic patterns, and the rapid urbanization of rural India.
This means that there is an urgent need for the growth rate of the dairy sector to match the
rapidly growing Indian economy.

The Structure of the Indian Dairy Industry The Indian dairy industry is mainly constituted of 22
state milk federations, 110,000 dairy cooperative societies involving more than 12 million milk
producers. There are also some major private players in the field which further improved the
dairy sector of the country namely; Amul, Britannia, Nestle, Mother dairy and Nandini etc., to
name a few. The home company "Amul" is ranked 18thin the world (IFCN, 2007), Fonterra of
New Zealand being the no. one player in this field. According to NDDB, the dairy cooperative
network includes 177 milk unions operating in over 346 districts and covering 1, 33,349 village
level societies is owned by around 13.9 million farmer members of which 3.9 million were
women.

The Indian dairy industry contributes about 69 per cent to the entire bulk of output from the
livestock sector. The dairy sector has grown robustly in the past years and has increased the per
capita availability to around 256 grams. Dairy cooperatives account for the major share of
processed liquid milk marketed in the country. Milk is processed and marketed by 170 milk
producers' cooperative unions, which federate into 22state cooperative milk marketing
federations. The organized sector still remains a minor stakeholder and handles about 20 per cent
of the milk whereas the unorganized sector of the dudhiyas and mithaiwallas still controls about
80 per cent of the industry. The structure of Indian dairy industry, as mentioned in Figure 1,
further reveals that organized sector of Indian dairy industry comprise of private dairies, various
Milk Cooperatives Societies and Government dairies.

SUPPLY CHAIN OF INDIAN DAIRY INDUSTRY

Supply chain in Indian dairy industry starts from supplying inputs for dairying in form of fodder,
animal feed plant, vetenery aids for the animal (cattle and buffalos), after supplying feed and
fodder to the mulch animal milk is taken out from the mulching animal on the daily basis by the
dairy farmers (large, medium and small scale farmers) which afterward is collected by the milk
collection Centre (various milk cooperatives societies). Then the milk collected by the
cooperative societies are sent to the dairy plants where chilling of milk, processing and
packaging of milk and milk product, transportation of milk and milk product is carried out.

The transportation of chilled milk and milk products from one place to another is done through
the means of refrigerated vans, or insulated milk tankers vans of private, government and
cooperatives societies. The finally processed milk and milk products are transported to various
retails outlets, supermarkets, and to retails markets from where the processed milk and milk
products finally reaches to their end customers which is shown in Figure 2.
 COMPANY PROFILE

“Parag Dairy “Dehradun” is a project under the operation flood 111 scheme of the Government
of India. It has been executed by National dairy Development board (NDDB) with a capital
investment of Rs 50 cores, for Pradeshik co-operative dairy Federation Limited, Lucknow.

Some Unique features of the dairy:-

Pradeshik co-operative Dairy Federation Ltd. is more than four decades old in the Indian Dairy
Industry. Aquasi government organization in the co-operative sector, it is the leading
organization in the dairy sector in the Northern India. PCDF- a cohesive body – successfully
does away with the exploitative force of yester years, the eventual middlemen, fore going a
direct link noble aim, a three tier co-operative structure has been evolved comprising of societies
at the village level, milk union in the districts & finally the main focal

Apex Federation—the PCDF at the state level. World Bank aided operation program in the state
has been implemented by PCDF in three phases beginning 1997 to the year 1995.

Nearly all the potential milk belts of the state were gradually covered in the three phases of
operation Flood programme.

BUSINESS AND MARKETING

STRATEGY OF THE COMPANY

Last year, we marketed products worth US $ 20 million. Parag is a house hold name for the
quality and price- anchorage. Our clientele include several prestigious organization of Dehradun
besides the Indian Army and Indian Air Lines. Our sales network is spread throughout Indian.

The global market for Indian milk products is likely to brighten further in view of the latest
GATT agreement. At present we are successfully exporting our product to neighboring countries.

PRODUCT OF THE COMPANY

Parag proudly present itself as a premium brand in the Indian Dairy industry. A list of nutritious
and premium quality product of parag include:-

Milk (Full cream and tonned)

  Skimmed milk powder in bulk and consumer pack
 Dairy whitener
 Pure ghee
 Table butter
 White butter
 Demineralised whey powder
 Casein edible and industrial grade
 Dahee

The taste, flavour and excellent quality of our SMP-ISI and pure ghee have made them as the
brand leader in the market.

In tune with the rapidly changing technology, production, units are well armed with the latest
equipment. These facilities enable to cater to the needs of clients of Parag by selling over
2,50,000 liters of milk per day in Dehradun.

Wide network of Parag backed by a team of dedicated and skilled professionals is ready on its
tows to provide you fresh and nutrious dairy products. They always welcome all clients’ queries
and leave no stone unturned for client’s utmost satisfaction.
 REVIEW OF LITERATURE

GyanPrakash (2011) found that the Indian agro industry is fraught with many difficulties such as
inefficiency, deterioration of perishable food items, unsatisfactory quality of commodities,
malpractices in weights and measures, mismatch of demand and supply, long waiting times,
exorbitant corruption, rude behavior of shopkeepers and poor service delivery. Streamlining of
PDS processes will result in increased operational efficiency, thereby reducing transit losses and
pilferages.

FAIDA report of the Confederation of Indian Industry (CII) and Mckinsey and Company (1997)
Bothreport showed that there is great potential for development of food processing and other
agro industry. However, India’s agro industry development is today plagued by tough
challenges, including costly raw material, supply chain inefficiencies, and market demand
constraints (Srivastava and Patel, 1994; Goyal, 1994; CII–Mckinsey, 1997).

Rangasamy& Dhaka, (2007) Show that the cost of collections and the chilling respectively with
the dairy cooperative societies and the bulk milk coolers keeps on rising due to low milk
procurements which further increases the cost of transportation and processing.

Burki and Khan (2008) analyzed the effects of producer‟s participation in supply chain networks
on productive/technical efficiency and found that building supply chain has positive effect on
productive efficiency of the small dairy farmers of small dairy farmers.

Brahmaprakash and Dinesh (1997) in their study on infrastructural requirements for

establishment of development and operation of agro-processed industries in rural areas opined
that lack of market information systems, timely and adequate financial support and post-harvest
technology as the major problems to realize the rural projects in India.

Roy (1997) opined that lower capacity utilization of the agro-based industries was reasoned by
lack of infrastructural facilities such as lack of transportation, storage and technology for post-
harvest handling. He also opined that the lack of integrated network between the producer,
farmer and the processor as indirect problem of agro-based industries.
 RATIONALE OF THE STUDY

Supply chain management is the plan and control of material and information flow among
suppliers, facilities, warehouses and customers with the objectives of minimization of cost,
maximization of customer services and flexibility. The supply chain of a business process
comprises mainly five activities viz., Purchase of materials from suppliers, transportation of
materials from suppliers to facilities, production of goods at facilities, transportation of goods
from facilitates to ware houses and transportation of goods from ware houses to customers. In
this proposal, a supply chain model is developed for a dairy industry, located in Dehradun ,
India. The supply chain includes four echelons namely raw milk suppliers, plant, warehouse and
customers. In this model, emphasis is mainly on production and distribution activities, with a
view to find out purchase plan of raw milk, production plan of product mix and transportation
plan of the products.
 STATEMENT OF THE PROBLEM

The need for the study was to assess the effectiveness of Logistics Management & Supply Chain
Management in the Parag Dairy compared with other organization in the same industry. The
organization also needs relevant data as to how it can improve its management policies in order
to gain future market share.

 Seek the general perception of retailers towards Parag Milk.

 To know the retailers psyche and their behavior towards Parag Milk.
 OBJECTIVES OF THE STUDY

 To explain the current structure of dairy supply chain management

 To explore the critical issues and core activities associated dairy supply chain
management
 To examine the informal channel partners (Gawala, Dhodi) roles in dairy supply
chain
 Understanding the importance of supply chain management in the dairy industry.

Hypothesis

H01:there is significant impact of supply chain process on sales of dairy products

Ha1: there is no significant impact of supply chain process on sales of dairy products
 RESEARCH METHODOLOGY

1. RESEARCH DESIGN:
A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:-
 Exploratory Research.
 Descriptive Research.
 Casual Research.
a. Exploratory Research:-
The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.
b. Descriptive Research:-
The objective of descriptive research is to describe things, such as the market potential for a
product or the demographics and attitudes of consumers who buy the product.
c. Casual Research:-
The objective of casual research is to test hypothesis about casual and effect relationships.
Based on the above definitions it can be established that this study Descriptive Research would
be used for the study as the attitudes of the customers who buy the products have been stated.
Descriptive or Survey Research Design due to its enormous advantages will be used in the
project report.

2. SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it addresses three
questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to select
them (sampling Procedure). Making the census study of the entire universe will be impossible on
the account of limitations of time and money. Hence sampling becomes inevitable. A sample is
only his portion of population. Properly done, sampling produces representative data of the entire
population.
i. Through questionnaire
 ii. Through personal interview

SAMPLING TOOL:-
Questionnaire will be used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.

3. DATA COLLECTION:
Data collection is the process of gathering and measuring information on variables of interest, in
an established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes. The data collection component of research is common to all
fields of study including physical and social sciences, humanities, business, etc. While methods
vary by discipline, the emphasis on ensuring accurate and honest collection remains the same.
The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have been
posed.
a. Method:
In this study data collection would be collected through:
i. Survey
ii. Interview
b. Sources of data collection
The data for the research will be collected through Primary as well as secondary sources.

I. PRIMARY SOURCES
Primary data will be collected through the questionnaire filled by various respondents. Primary
Data is the one which is of employee`s importance and backbone of any study. It will be
obtained from respondents with the help of widely used and well known method of survey. In
this study primary data will be collected through questionnaire. In this structured questionnaire
was will be. Questionnaire will be a list of questions given to number of persons. It secures
standardized results that can be tabulated and treated statistically. Structured questionnaire are
those questionnaire in which there are definite, concrete and predetermined questions. In this
questions are presented with exactly the same wordings and the same form to all the respondents.

II. SECONDARY SOURCES

Secondary data is the one which is collected through the magazines, newspapers, shopkeepers’
catalogue and the advertisement. This types of data is known as published data. Data which is
not originally collected is called secondary data. The first step in any research is the collection of
secondary data. In this project, data will be collected from company records, internet and
journals.
Sampling Plan:
A sampling plan is a detailed outline of which measurements will be taken at what times, on
which material, in what manner, and by whom. Sampling plans should be designed in such a way
that the resulting data will contain a representative sample of the parameters of interest and allow
for all questions, as stated in the goals, to be answered.

Sampling Unit : Dealers of Milk companies in Dehradun

Sampling Size : 100
Sampling Area : Dehradun
Statistical Tools Used : Bar Graph and pie charts
 LIMITATION OF THE STUDY:

1. Some people don’t give the remarkable answer, so the surveyor has to make his own
assumption
2. Since the survey has been conducted in Dehradun, being so big market it might not give true
picture.
3. The questionnaire was too long and many a times respondents used to refuse to fill the
questionnaire as they considered it to be time consuming.
4. The time period allotted for the study was limited as it had to be completed with this
stipulated period of time.
5. The number of respondent covered in the study is limited. Although all efforts has been taken
to make this study a representative of total market of Dehradun, the sample size is too small so
that data are not reliable. Most of the customer were busy in their work and saying “sorry I don’t
have time” .So it was very difficult to access information from those people.
6. The respondents were unable to read exact data spontaneously.
It is very difficult to catch the exact word of customers through questionnaire
 REFERENCES

 Abbasi, M. and Nilsson, F. (2012), “Themes and challenges in making supply chains
environmentally sustainable”, Supply Chain Management: An International Journal, Vol.
17 No. 5, pp. 517-530.
 Agan, Y., Acar, M.F. and Borodin, A. (2013), “Drivers of environmental processes and
their impact on performance: a study of Turkish SMEs”, Journal of Cleaner Production,
Vol. 51, pp. 23-33.
 Ageron, B., Gunasekaran, A. and Spalanzani, A. (2012), “Sustainable supply
management: an empirical study”, International Journal of Production Economics, Vol.
140 No. 1, pp. 168-182.
 Aksen, D., Aras, N. and Karaarslan, A.G. (2009), “Design and analysis of government-
subsidized collection systems for incentive-dependent returns”, International Journal of
Production Economics, Vol. 119 No. 2, pp. 308-327.
 Alt, E., Díez-de-Castro, E.P. and Lloréns-Montes, F.J. (2015), “Linking employee
stakeholders to environmental performance: the role of proactive environmental
strategies and shared vision”, Journal of Business Ethics, Vol. 128 No. 1, pp. 167-181.
 Alvarez-Gil, M.J., Berrone, P., Husillos, F.J. and Lado, N. (2007), “Reverse logistics,
stakeholders’ influence, organizational slack, and managers’ posture”, Journal of
Business Research, Vol. 60 No. 5, pp. 463-473.
 Amato, L.H. and Amato, C.H. (2009), “Changing retail power and performance in
distribution channels”, International Journal of Retail and Distribution Management, Vol.
37 No. 12, pp. 1057-1076.
 Baiman, S. and Rajan, M.V. (2002), “Incentive issues in inter-firm relationships”,
Accounting, Organizations and Society, Vol. 27 No. 3, pp. 213-238.
 Beske, P., Land, A. and Seuring, S. (2014), “Sustainable supply chain management
practices and dynamic capabilities in the food industry: a critical analysis of the
literature”, International Journal of Production Economics, Vol. 152, pp. 131-143.
 Blome, C., Schoenherr, T. and Eckstein, D. (2014), “The impact of knowledge transfer
and complexity on supply chain flexibility: a knowledge-based view”, International
Journal of Production Economics, Vol. 147, pp. 307-316