26 customer focus on supply chain management in ponlait puducherry

CUSTOMER FOCUS ON SUPPLY CHAIN

MANAGEMENT IN PONLAIT, PUDUCHERRY

SUMMER PROJECT REPORT

Submitted by

R.NITHYAN

REGISTER NO: 27348326

Under the Guidance of

Mrs. R.HEMALATHA, M.B.A.,

Faculty, Department of Management Studies

in partial fullfilment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

PONDICHERRY UNIVERSITY

PUDUCHERRY

SEPTEMBER- 2007

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

MADAGADIPET, PUDUCHERRY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled “CUSTOMER FOCUS ON SUPPLY

CHAIN MANAGEMENT” is a bonafide work done by R.NITHYAN [REGISTER NO:

27348326] in partial fulfilment of the requirement for the award of Master of Business

Administration by Pondicherry University during the academic year 2007 – 2008.

GUIDE HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER

ACKNOWLEDGEMENT

First and foremost, I thank the God for his substantial blessing and mercy at all stages

in the completion of the project.

I take this opportunity to express my deep sense of gratitude to

Shri. N. KESAVAN, Founder Chairman, Shri. M . DHANASEKARAN, Managing

Director and Shri. S .V . SUGUMARAN, Vice-Chairman of our college for their good

wishes for this project.

I express my immense gratitude to our Principal

Dr.V.S.K.VENKATACHALAPATHY for his support and encouragement for the

completion of my project.

I extend the immense gratitude to the Head of the Department Mr. S.JAYAKUMAR

for his motivation, inspiration, and encouragement for the completion for my project.

The valuable and unflinching requital support in this Endeavor

Mr.D.SARAVANAN my internal guide, Department of Management Studies whose

assistance was immeasurable to the completion of this project.

I am sincerely thankful to Mr.P. GUNASEKARAN, Deputy Marketing Manager,

who is my External Guide.

I would also like to thank all the staff of the organization for helping me directly and

indirectly to conclude this work. Last, but not the least, my heart felt gratitude to my parents,

relatives and my friends for their constant encouragement, support, help and valuable advice

to make this project a success.

ABSTRACT

The Project has been done in The Pondicherry Co-operative Milk Producer Union

Ltd. The title of the project is “Customer Focus on Supply Chain Management”.

The study starts with an Company’s profile and also the need for study, review of

literature and objectives are set out for the study. Research methodology, Data analysis &

Interpretation, Findings and Suggestions of the study follow.

One of the main areas of the project is the analysis part, where the data are

analyzed & interpreted, to find out the Supplier Performance. Some of the tools used

in Supply Chain analysis are regarding to:

Percentage Method.

And then conclusions, limitations & scope for further study were discussed.

CONTENTS

CHAPTER TITLES PAGE NO.

LIST OF TABLES

LIST OF CHARTS

I

INTRODUCTION

PROFILE OF THE COMPANY

NEED FOR THE STUDY

1

2

9

II REVIEW OF LITERATURE 10

III OBJECTIVES OF THE STUDY 21

IV RESEARCH METHODOLOGY 22

V DATA ANALYSIS AND INTERPRETATION 24

VIFINDINGS OF THE STUDY,

SUGGESTION AND RECOMMENDATIONS

39

41

VII CONCLUSION 42

VIIILIMITATIONS OF THE STUDY

SCOPE FOR THE FUTHER STUDY

43

44

QUESTIONNAIRE

BIBILIOGRAPHY

45

47

LIST OF TABLES

TABLE NO. NAME OF THE TABLE PAGE NO.5.1.1 SEX OF THE RESPONDENTS 24

5.1.2 OCCUPATION OF THE RESPONDENTS 25

5.1.3 CONSUME PONLAIT MILK 26

5.1.4 HOW FREQUENT DO CONSUME 27

5.1.5 MILK CONSUMPTION 28

5.1.6 PURCHASE MILK MADE FROM 29

5.1.7 LEADING SUPPLIER IN MILK 30

5.1.8 PRICE OF PRODUCT 31

5.1.9 OTHER THAN MILK WHICH PRODUCT DO YOU 32

5.1.10 RESPONDENTS PREFERENCE 33

5.1.11 PONLAIT IS AVAILABLE SUFFICENT IN MARKET 34

5.1.12 SATIFACTION LEVEL 35

5.1.13 PREFERENCE OTHER THAN THE PONLAIT 36

5.1.14 DEFECTS IN PONLAIT MILK 37

5.1.15 ANALYSIS BY CORRELATION 38

LIST OF CHARTS

CHART NO. NAME OF THE CHART PAGE NO

5.1.1 SEX OF THE RESPONDENTS 24

5.1.2 OCCUPATION OF THE RESPONDENTS 25

5.1.3 CONSUME PONLAIT MILK 26

5.1.4 HOW FREQUENT DO CONSUME 27

5.1.5 MILK CONSUMPTION 28

5.1.6 PURCHASE MILK MADE FROM 29

5.1.7 LEADING SUPPLIER IN MILK 30

5.1.8 PRICE OF PRODUCT 31

5.1.9 OTHER THAN MILK WHICH PRODUCT DO YOU 32

5.1.10 RESPONDENTS PREFERENCE 33

5.1.11 PONLAIT IS AVAILABLE SUFFICENT IN MARKET 34

5.1.12 SATIFACTION LEVEL 35

5.1.13 PREFERENCE OTHER THAN THE PONLAIT 36

5.1.14 DEFECTS IN PONLAIT MILK 37

CHAPTER- I

INTRODUCTION

SUPPLY CHAIN MANAGEMENT

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.

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.

1.1 PROFILE OF THE COMPANY

1.1.1 ORIGIN AND GROWTH

History tells us that Ponlait came to existence as Pondicherry Milk Supply Society

registered as 1st Co-operative Society in the Union Territory of Pondicherry on

07-02-1955. 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 by giving various

assistance / incentives to the milk-producing farmers.

The Union started procuring milk from the village producers on quality basis from

1970 onwards. To keep pace with the milk production, the Milk Union has also

set up a Dairy Plant with 10,000 ltrs capacity for processing on 12.04.1971.

During the year 1973 the supply society was converted to co-operative milk

producers’ Union with objective of shifting its focus on the milk producing

community and its welfare.

With the success of the Amul, the National Dairy Development Board has

programmed to replicate the Anand pattern (collecting the quality milk from the

members and payment of remunerative price in cash regularly and providing milk

production enhancement) all over the nation. The Pondicherry Co- operative Milk

Producers’ Union has also taken up the world’s largest Dairy Expansion

Programme, the “Operation Flood” during the year 1982-1985. With the

launching of Operation flood Programme the Dairy Plant was expanded to 50,000

ltrs capacity per day. All the milk primary co-operative societies were converted

to Anand pattern societies.

Ponlait has entered the MNEMONIC club conceived, implemented, promoted and

popularized by the NDDB for the entire Dairy Co-operative of the Nation, with

effect from 30.03.2002.

Thus Ponlait 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

The only institution in Pondicherry is extending more than a crore every month to

rural economy in cash for the benefit of farming community, by way of Milk

Purchase.

1.1.2 ACTIVITES OF DIFFERENT UNITS OF THE MILK UNION

A. MILK PROCURMENT AND INPUT WING

Ponlait is operating in the Pondicherry Region with 99 affiliated functional Dairy

Co-operative Societies.

There are 34798 Cattle owners who became members in the Dairy Co-operative

Societies at villages and supplying milk to Ponlait.

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.

Besides the main activity, the milk-supplying members milch animals are also

providing with cattle feed, green fodder and artificial insemination.

B. MILK PROCESSING

The present handling capacity of the Dairy plant is 50,000 ltrs per day. However

with prudent technical manpower and top managements support an average of

80,000 ltrs of milk is handled per day and 93,000 ltrs of milk handled in peak.

3 varieties of milk namely Tonned Milk, Standardised Milk & Premium Milk are

produced as per the consumer requirements. The daily consumer demand is met

fully. Present demand is 62,000 to 65,000 liters per day.

From the August 2002, the Dairy is supplying 15,000 liters of standardised milk

to school children in the morning under Sri Rajiv Gandhi School Children Break

fast scheme, 1st of its kind in the nation organized by the government of

pondicherry. Besides at present the union is 28,500 liters if milk supplying to the

students both in the morning and evening. The Evening milk supply effected from

20-10-2005 as desired by the government of pondicherry.

Besides milk processing and grading, the Dairy is equipped to produce 15 MTS of

ghee and 1500 kgs of Khoa (milk peda) monthly. The Ponlait ghee and khoa are

much sought after products in the pondicherry town.

The Dairy is producing 1000-1500 pockets of flavoured milk and 500-1000 of

butter milk every day and sells in pondicherry town.

The Dairy is also producing Paneer and Curd as per the requirement of the

consumer as and when needed.

C. QUALITY ASSURANCE BY MAKING PROPER MILK TESTING IN

LABORATORY AT DAIRY

Since the milk is highly perishable commodity, proper care is taken to maintain

quality of the milk right from the point of production to the point of consumption.

At the village level, the milk poured by the individual member producer are tested

at the primary society.

The milk tested for the quality at society level reaches the Dairy Plant. The raw

milk is tested organoleptically at the Dairy reception dock for its quality and then

the individual society sample are tested for its fat content and other microbial

standards.

Apart form this, the processed milk is sampled at every point of storage during the

process and proper care is taken to maintain quality standards.

Finally the different varieties of milk are graded and kept ready for packing to the

consumers. The pouched milk samples are randomly taken and tested for its shelf

life after dispatch of the consumers. Presently the milk is dispatched to the market

at 5 degree centigrade in three varieties viz Toned milk 3.0% Fat 8.5% SNF,

Standardised milk 4.5% Fat 8.5% SNF and the Premium milk 5.0% Fat 9.0%

SNF. (SNF- Solids Not Fat)

Day in and Day out maintaining the quality of milk receives the top priority.

D. MARKETING

The Pondicherry Co-operative Milk Producers’ Union is operating in the

Pondicherry market, selling three different varieties of milk catering to the

different segments of the market, under its brand name “Ponlait”.

Ponlait is the number one milk brand in the Pondicherry town. Though there are

many private players in the market, Ponlait is the major market shareholder. A

market survey finding indicates that the present market share of Ponlait is around

52%.

The present average market throughput is 62,000 ltrs per day and the sales is in

the uptrend. It is anticipated that the sales curve may touch its peak (60,100 ltrs

monthly average) during January 2006.

To cater the urban population, 180 retail outlets are operated by retail sales

agents. The retail outlets are supplied with milk through a network 10 milk

distribution routes daily in the morning and the evening.

Besides, the Union is also running 9 milk parlours to sell milk and ilk products.

Milk is made available to the urban consumers. 24 hours a day through 5 such

parlours.

E. CATTLE FEED

Ponlait owns a Cattle Feed Plant of 5 MT per day capacity in Thattanchavady

Industrial Estate, Pondicherry-9

Compounded Cattle Feed is produced with cost effective ingredients and supplied

to the members through Dairy Co-operative Societies on non profit motive.

Ponlait is extending subsidy of Rs.100/- as provided by the Government of

Pondicherry to each bag containing 50 Kgs of Feed out of the total cost of

Rs.312/- per bag

The present monthly production and supply is 235 MTS.

In addition Ponlait Cattle Feed is supplied to Neighbouring Villupuram Dist.

Dairy also.

Batch wise the Cattle feed is being tested its quality regularly.

The balanced compounded Cattle feed produced in the Ponlait Cattle Feed Plant is

proved to be effective for animal health and quality milk production.

F. ADMINISTRATION

The Ponlait Administration is vested with the committee of management

comprising 12 elected representatives from the Presidents of Dairy Co-operative

Societies and a nominee from National Dairy Development Board, Co-operative

Department of Animal Husbandry and Managing Director of the Milk Union.

Since the committee of management is dissolved, the Administrator manned by a

Deputy Registrar form the Co-operative Department is looking after in lieu of the

Board of Management with effect from 06.09.2002.

As per the order of the High Court, Chennai, an Advisory Board with the

following three members has been constituted by the RCS in order to guide the

Administrator by making major policy decisions and other administrative matters.

1. Registrar of Co-operative Societies - Chairman

2. State Director, NDDB, Erode - Members

3. Director, AHD, Pondicherry - Members

At present 173 permanent employees in various cadres are working in the Union.

1.1.3 MILESTONES OF THE COMPANY

SL.NO. MILESTONES YEARS

1 Registred as The Pondicherry Cooperative Milk Supply Society Ltd 1955

2 Foundation stone laid 1968

3 Dairy Plant Commissioned 10000 ltrs capacity 1971

4 Cattle feed Plant commissioned 1971

5 Registred as The Pondicherry Cooperative Milk Producers’ Union Ltd 1973

6 Artificial Insemination implemented 1984

7 Dairy Plant Expanded 10000 to 30000 ltrs capacity 1987&1988

8 Urea molasses plant implemented 1991

9 Coop. Development Programme implemented 1992

10 Expansion of Dairy Plant to 50,000 ltrs Capacity 1996&1997

11 Internet based Information System (iDIS) implemented 2000&2001

12 Mnemonic symbol adopted 2002

13 Milk supply to School Children under (Rajiv Gandhi Breakfast Scheme) 2002

14 Inaugrated Sofy ice cream sales at Bus stand Parlour (Atchaya Thiruthai) 2005

1.1.4 COMPANY ORGANIZATION CHART

DM

(P&

O)

DM

(P&

I)

D.H

elper/AI

Driver

Fodder

Dev.A

sst

Extn (A

sst) S

r. A

sst/Typist

AM

(CF

U)

AM

(Mktg)

Supdt (P

&I)

AM

(B

MC

)D

M

(Accts)

AM

(QC

)

D.H

elpers

Senior

Assts

Helpers

ClericalA

ssts

Sales

Supervisor

Supdt

(Mktg)

D.H

elpers

Tech./S

r.Asst

Supdt

(Store/

Prodct/Tech)

D.H

elpers

Cashier

Sr. A

ssts

Supt.

DA

(B

act/chem)

D.H

elpers

Driver

Sr.A

ssts

Supdt

(Adm

)

Managing D

irector

AD

MIN

IST

RA

TO

R

PA to M

D

Steno

MIS

(O)

DE

O /

Asst.

1.2. NEED FOR STUDY

Customer focus on supply management (ponlait) is made for special purpose to improve

the product and marketing function for consumer satisfaction.

To know about how many people to get aware about PONLAIT.

To find the competitors and analyze the methods for competition marketing.

How many people to consume PONLAIT in market

To get suggestion from public for further improvement

Why some people don’t prefer ponlait and reason for non consumption

Who is the main Customer and which satisfies them?

CHAPTER - II

REVIEW OF LITERATURE

SUPPLY CHAIN MANAGEMENT

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.

Supply chain management problems

Supply chain management must address the following problems:

Distribution Network Configuration: Number and location of suppliers, production

facilities, distribution centers, warehouses and customers.

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.

Inventory Management: Quantity and location of inventory including raw materials,

work-in-process and finished goods.

Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds

across entities within the supply chain.

Supply chain execution is managing and coordinating the movement of materials,

information and funds across the supply chain. The flow is bi-directional.

Activities/functions

Supply chain management is a cross-functional approach to managing the movement of

raw materials into an organization and the movement of finished goods out of the

organization toward the end-consumer. As corporations strive to focus on core

competencies and become more flexible, they have reduced their ownership of raw

materials sources and distribution channels. These functions are increasingly being

outsourced to other corporations that can perform the activities better or more cost

effectively. The effect has been to increase the number of companies involved in

satisfying consumer demand, while reducing management control of daily logistics

operations. Less control and more supply chain partners led to the creation of supply

chain management concepts. The purpose of supply chain management is to improve

trust and collaboration among supply chain partners, thus improving inventory visibility

and improving inventory velocity.

Several models have been proposed for understanding the activities required to manage

material movements across organizational and functional boundaries. SCOR is a supply

chain management model promoted by the Supply Chain Management Council. Another

model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply

chain activities can be grouped into strategic, tactical, and operational levels of activities.

Strategic

Strategic network optimization, including the number, location, and size of warehouses,

distribution centers and facilities.

Strategic partnership with suppliers, distributors, and customers, creating communication

channels for critical information and operational improvements such as cross docking,

direct shipping, and third-party logistics.

Product design coordination, so that new and existing products can be optimally

integrated into the supply chain, load management

Information Technology infrastructure, to support supply chain operations.

Where to make and what to make or buy decisions

Align overall organizational strategy with supply strategy

Tactical

Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, locations, scheduling, and planning process

definition.

Inventory decisions, including quantity, location, and quality of inventory.

Transportation strategy, including frequency, routes, and contracting.

Benchmarking of all operations against competitors and implementation of best practices

throughout the enterprise.

Milestone payments

Operational

Daily production and distribution planning, including all nodes in the supply chain.

Production scheduling for each manufacturing facility in the supply chain (minute by

minute).

Demand planning and forecasting, coordinating the demand forecast of all customers and

sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in collaboration

with all suppliers.

Inbound operations, including transportation from suppliers and receiving inventory.

Production operations, including the consumption of materials and flow of finished

goods.

Outbound operations, including all fulfillment activities and transportation to customers.

Order promising, accounting for all constraints in the supply chain, including all

suppliers, manufacturing facilities, distribution centers, and other customers.

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

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

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 Outsourcing/partnerships Performance

measurement

a) Customer service management process

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 win-

win relationship, where both parties benefit, and reduction times in the design cycle and

product development is achieved. Also, the purchasing function develops rapid

communication systems, such as electronic data interchange (EDI) and Internet linkages

to transfer possible requirements more rapidly. Activities related to obtaining products

and materials from outside suppliers. This requires performing resource planning, supply

sourcing, negotiation, order placement, inbound transportation, storage and handling and

quality assurance. Also, includes the responsibility to coordinate with suppliers in

scheduling, supply continuity, hedging, and research to new sources or programmes.

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;

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

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

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

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).

CHAPTER-III

OBJECTIVES OF THE 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

ponlait.

CHAPTER – IV

RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

The research design which was selected was narrative one. It narrates the

whole research in a simple manner.

4.2 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

as well as in Tamil. Generally 23 questions are prepared and asked to the customers.

Secondary Data

Secondary data was collected from Internets, various books, Journals, and

Company Records.

4.3 QUESTIONNAIRE CONSTRUCTION

In this Questionnaire Constructed on the basis of two types. There are

Multiple choice and close ended ( Yes/ No) Questions.

4.4 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.

4.5 SAMPLE SIZE

About 50 sample are taken in PONLAIT

4.6 FIELD WORK

The field works is done in PONLAIT, PONDICHERRY

4.7 PERIOD OF SURVEY

The period of survey is from August to September, 2007.

4.8 DESCRIPTION OF STATISTICAL TOOLS USED

Percentage method

Chi-square test

Weighted average

4.8.1 PERCENTAGE METHOD:

In this project Percentage method test was used. The following are the

formula

No of Respondent Percentage of Respondent = x 100

Total no. of Respondents

4.8.4 SIMPLE CORRELATION:

In probability theory and statistics, correlation, also called correlation

coefficient, indicates the strength and direction of a linear relationship between two

random variables. In general statistical usage, correlation or co-relation refers to the

departure of two variables from independence.

Formula:

r = Σ(X-Xi) (Y-Yi)

√Σ(X-Xi) 2 Σ(Y-Yi) 2

Where

X- Reason for repurchase

Y-Preference of respondent

http://en.wikipedia.org/wiki/Probability_theory

http://en.wikipedia.org/wiki/Random_variables

http://en.wikipedia.org/wiki/Statistics

CHAPTER – V

5. DATA ANALYSIS AND INTERPRETATION

5.1 PERCENTAGE METHOD - GENERAL INFORMATION

TABLE: 5.1.1

SEX OF THE RESPONDENT

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 MALE 35 70.0

2 FEMALE 15 30.0

TOTAL50 100.0

Source: Primary Data

Inference: From the above table it is inferred that out of 50 employees, 70% of the

Respondents are male. Remaining 30 % of the respondents are female.

CHART: 5.1.1

femalemale

Sex

60

40

20

0

Pe

rcen

t

Sex

TABLE 5.1.2

OCCUPATION OF THE RESPONDENTS

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Business 5 10.0

2 Employee 21 42.0

3 Student 22 44.0

4 Farmer 2 4.0

Total 50 100.0



Respondent occupations are students 42 % of the respondents occupations are Employee

CHART 5.1.2

FarmerStudentEmployeeBusiness

Occupation

50

40

30

20

10

0

Per

cen

t

Occupation

TABLE: 5.1.3

DO U CONSUME PONLAIT MILK

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Yes 40 80.0

2 No 10 20.0

TOTAL 50 100.0


Inference ; From the above table it is inferred that out of 50 employees, 80% of the

Respondents consume ponlait milk , 20 % of the Respondents consume ponlait milk.

CHART: 5.1.3

TABLE: 5.1.4

NoYes


80

60

40

20

0

Per

cen

t


IF YES HOW FREQUENT DO CONSUME

S.NO OPTIONS

NO OF RESPONDENT

SPERCEN

T1 Weekly Once 15 30.02 Weekly Twice 4 8.03 Weekly Thrice 6 12.04 Regularly 25 50.0

TOTAL 50 100.0


Inference; From the above table it is inferred that out of 50 employees, 50% of the

Respondents consume regularly, 30 % of the Respondents consume weekly once.

CHART: 5.1.4

TABLE: 5.1.5

RegularlyWeekly ThriceWeekly TwiceWeekly Once


60

50

40

30

20

10

0

Per

cen

t


MILK CONSUMPTION

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Whether you will go in search of your

preferred brand. 23 46.0

2 You consume what ever brandavailable from where you consume 20 40.0

3 You will not consume if your preferredbrand is not available 7 14.0

TOTAL 50 100.0



Respondents search for preferred brand regularly, 40 % of the Respondents consume

What ever brand available

CHART 5.1.5

TABLE: 5.1.6

You will not consume if your prefered brand is not available

You consume what ever brand Available from where you

Consume

Wheather you will go in search Of your preferred brand.

MILK CONSUMPTION

50

40

30

20

10

0

Per

cen

t

MILK CONSUMPTION

PURCHASE MILK

S.NO OPTIONS

NO OF RESPONDENTS PERCENT

1 From grocery shop15 30.0

2 From ponlait parlours 11 22.03 From local merchant 17 34.04 From other sources 7 14.0

Total 50 100.0



Respondents purchase milk from grocery shop, 22 % of the Respondents purchase milk

from parlour

CHART: 5.1.6

From other sourcesFrom local merchantFrom ponlait parloursFrom grocery shop

PURCHASE MILK

40

30

20

10

0

Per

cen

t

PURCHASE MILK

TABLE: 5.1.7

LEADING SUPPLIER

S.NO OPTIONSNO OF


2 No 6 12.0

TOTAL 50 100.0


Inference: From the above table it is inferred that out of 50 employees, 88% of

the Respondents are leading supplier, 22 % of the Respondents are not leading supplier

CHART 5.1.7

TABLE: 5.1.8

PRICE

NoYes

LEADING SUPPLIER

100

80

60

40

20

0

Pe

rce

nt

LEADING SUPPLIER

S.NO OPTIONS NO OF RESPONDENTS PERCENT1 High 13 26.02 Low 15 30.03 Normal 20 40.04 Very low 2 4.0

TOTAL 50 100.0


Inference: From the above table it is inferred that out of 50 employees,40% of the

Respondents Price are normal, 30 % of the Respondents Price are low.

CHART: 5.1.8

TABLE: 5.1.9

Very lowNormalLowHigh

PRICE

40

30

20

10

0

Per

cen

t

PRICE

OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME

S.NO OPTIONS NO OF RESPONDENTS PERCENT1 Ghee 18 36.0

2 Khoa 14 28.0

3 Flower milk 9 18.0

4 Curd 9 18.0

TOTAL 50 100.0



Respondents consume Ghee, 28 % of the Respondents consume Khoa.

CHART: 5.1.9

TABEL: 5.1.10

WHY DO PREFER PONLAIT BECAUSE OF ITS

CurdFlower milkKhoaGhee


40

30

20

10

0

Per

cen

t


S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Price 10 20.02 Quality 24 48.03 Brand name 7 14.04 All the above 9 18.0

TOTAL 50 100.0



Respondents prefer Quality, 20 % of the Respondents prefer Price.

CHART: 5.1.10

TABLE: 5.1.11

WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

All the aboveBrand nameQualityPrice


50

40

30

20

10

0

Per

cen

t


S.NO OPTIONSNO OF


2 No 11 22.0

TOTAL 50 100.0


Inference: From the above table it is inferred that out of 50 Respondents.39% of the

Respondents of ponlait available in market , 11 % Respondents of ponlait not available

in market

CHART: 5.1.11

TABLE: 5.1.12

CUSTOMER FOCUS ON SATIFACTION LEVEL

NoYes


80

60

40

20

0

Per

cen

t


S.NO OPTIONS NO OF RESPONDENTS PERCENT1 Highly satisfied 15 30.0

2 Satisfied 19 38.0

3 Neutral 7 14.0

4 Dissatisfied 9 18.0

TOTAL 50 100.0



Respondents are satisfied, 30 % Respondents are highly satisfied.

CHART: 5.1.12

TABLE: 5.1.13

WHAT DO YOU PREFER OTHER THAN THE PONLAIT

DissatisfiedNeutralSatisfiedHighly satisfied

40

30

20

10

0

Per

cen

t



S.NO OPTIONS NO OF RESPONDENTS PERCENT1 Arokiya 30 60.0

2 Russi 20 40.0

TOTAL 50 100.0



Respondents prefer Arokiya, 40 % Respondents prefer Russi.

CHART: 5.1.13

TABLE: 5.1.14

DO YOU FIND ANY DEFECTS IN PONLAIT MILK

RusiArokiya


60

50

40

30

20

10

0

Per

cen

t


S.NO OPTIONSNO OF


2 No 31 62.0

Total 50 100.0



Respondents have no defects, 38 % Respondents have defects.

CHART: 5.1.14

5.1.15 ANALYSIS BY CORRELATION BETWEEN REASON FOR DEFECTS AND HEALTH PROBLEM

Table 5.1.15

NoYes


60

40

20

0

Per

cen

t


Factors Health Defects X-Xi Y-Yi (X-Xi) (Y-Yi) (Y-Yi)2

Yes 30 19 5 -6 -30 25 36

No 20 31 -5 6 -30 25 36

Total 50 50 0 0 -60 50 72

Xi = 50/2= 25

Yi = 50/2 =25

Formula:

r = Σ (X-Xi) (Y-Yi)

Σ(X-Xi)2 Σ(Y-Yi)2

Calculation:

r = -60 60

= -1

Inference:

The value of r is -1. it indicates that there is a negative correlation between the

health and defects.

CHAPTER – VI

FINDINGS OF THE STUDY, SUGGESSTION AND

RECOMMENDATION

6.1 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 respondent’s conume ponlait milk. Remaining 20 % of the

peoples consume other product.

50% of the respondents consume ponlait milk regularly, 30 % of the respondents consume ponlait milk weekly once.

46% of the respondents search for preferred brand regularly, 40 % of the respondents consume what ever brand in market.

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

88% of the Respondents responds that leading supplier are ponlait milk, 22 %

of the Respondents are other leading supplier

40% of the respondents price are normal, 30 % of the respondents price are low.

Other than milk, 36% of the respondents consume Ghee, 28 % of the respondents consume Khoa.

48% of the respondents prefer Quality of ponalait, 20 % of the Respondents prefer Price.

39% of the respondents respond that ponlait available in market , 11 % respondents of ponlait not available in market

38% of the Respondents are satisfied, 30 % Respondents are highly satisfied

Other than ponlait ,60% of the Respondents prefer Arokiya, 40 % Respondents prefer Russi

62% of the Respondents have no defects, 38 % Respondents have defects in ponlait milk

6.2. SUGGESTIONS & RECOMMENDATIONS

The suggestions are gathered from public to improve the ponlait

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 amomg 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.

CHAPTER – VII

CONCLUSION

Customer Focus will help to learn customer buying attitude. In Ponlait not get

much more awareness from public, so kindly to improve the advertisements and other

improvements process such as to introduce new size of packs than the normal size (i.e.,

200ml to 300ml packs) and improve the protein level.

The study has been conducted at PONLAIT. The company has become a

leading in milk products in puducherry..

The researcher has conducted the study for 30 days. A survey was conducted

with 50 respondents in the company by using questionnaire to collect the

information’s from the respondents. After gathering the information’s, the researcher

has analysis the data by interpreting the various tools. Based on the analysis, the

researcher has given some suggestions to the management to develop customer focus.

CHAPTER-VIII

8.1 LIMITATIONS OF THE STUDY

Due to lack of time, unable to collect more information from the Customers.

Some customers may afraid to give information’s.

Illiterate customers are also given information’s.

The whole population cannot be studied due to Selection of limited Samples

8.2 SCOPE FOR FURTHER STUDY

The project throws on the needs for learning buying behavior for successfull

marketing.

The project was developed based on benefits of sales towards organization.

It will be helpful for the management to identify the needs and benefits of the

consumer and to take decision-making to promote marketing status.

This project can be base for the students who are doing the project in the related

area and to the organization in viewing the worth of the consumer and attitude of

the buying decision making.

CHAPTER IX

QUESTIONAIRE

01. Name of the customer :

02. Place :

03. Age group 10-25 26-40 41-60 60-and above :

04. Sex : Male/Female

05. Occupation :

06. Income group 2000 to5000 per month : 5001to 10000 per month : 10001 to 20000 per month : 20001 and above :

07. Do you consume ponlait milk : Yes/No

08. If Yes How frequently you consume : a) Weekly onceb) Weekly twicec) Weekly thriced) regularly

09. While going for Milk consumption :

a) Whether you will go in search of your preferred Brand.b) You consume what ever Brand available from where you consume

c) You will not consume if your Preferred Brand is not available.

10. From where do you purchase milk product:

01. From Grocery shop02. From ponlait parlours03. From local merchant04. From other sources

11. Do you know that ponlait is a leading Supplier of Milk and Milk product : Yes/No

12. Does the price of the ponlait isa) High b) Lowc) Normal d) Very low

13. Other than the milk which product do you like to consume

a)Ghee b)Milk peda(khoa)c)Flower milk d) curd

14) why do you prefer ponlait because of its …………. a) Price b) quality c) Brand name d) all the above

15. Whether the ponlait is available sufficient in the market : Yes/No

16. What is the size of the pack do you buy.a)200ml b)500ml

17. What type flavour do you prefer

a)Special b)General

18. Are you satisfied with the ponlait : Yes/No

19. What is your satisfaction level

a) Highly satisfiedb) satisfiedc) Neutrald) Dissatisfied

e) Highly dissatisfied

20. What do you prefer other than the ponlait ? :a)Arokiya b)Russi

21. Does ponlait milk is good your health? : Yes/No

22. Do you find any defects in ponlait milk? : Yes/No

23. How is the Packing of the product is it? a) Good b) bad

BIBILIOGRAPHY

Books:

[1] Leon G. Sehiffman .,” Consumer Behavior. “

[2] Philip Kotler .,“Marketing Management”

[3] Kothari, C.R., “Research Methodology”

[4] Gupta, S.P., “Statistical Methods”,

Web Sites:

[1] www.bpotimes.com

[2] www.managementorg.com

[3] www.answers/topic/consumerbehavior.com

26 customer focus on supply chain management in ponlait puducherry

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