For more Project visit techshristi.comCUSTOMER FOCUS ON SUPPLY CHAIN

MANAGEMENT IN PONLAIT, PUDUCHERRYSUMMER PROJECT REPORT

Submitted byR.NITHYAN

REGISTER NO: 27348326

Under the Guidance ofMrs. R.HEMALATHA, M.B.A.,

Faculty, Department of Management Studies

in partial fullfilment for the award of the degreeof

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIESSRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

PONDICHERRY UNIVERSITYPUDUCHERRY

SEPTEMBER- 2007

For more Project visit techshristi.comSRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

MADAGADIPET, PUDUCHERRY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled CUSTOMER FOCUS ON SUPPLYCHAIN MANAGEMENT is a bonafide work done by R.NITHYAN [REGISTER NO:27348326] in partial fulfilment of the requirement for the award of Master of BusinessAdministration by Pondicherry University during the academic year 2007 2008.

GUIDE HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER

For more Project visit techshristi.comACKNOWLEDGEMENT

First and foremost, I thank the God for his substantial blessing and mercy at all stagesin the completion of the project.

I take this opportunity to express my deep sense of gratitude toShri. N. KESAVAN, Founder Chairman, Shri. M . DHANASEKARAN, ManagingDirector and Shri. S .V . SUGUMARAN, Vice-Chairman of our college for their goodwishes for this project.

I express my immense gratitude to our PrincipalDr.V.S.K.VENKATACHALAPATHY for his support and encouragement for thecompletion of my project.

I extend the immense gratitude to the Head of the Department Mr. S.JAYAKUMARfor his motivation, inspiration, and encouragement for the completion for my project.

The valuable and unflinching requital support in this EndeavorMr.D.SARAVANAN my internal guide, Department of Management Studies whoseassistance 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 andindirectly 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 adviceto make this project a success.

ABSTRACT

The Project has been done in The Pondicherry Co-operative Milk Producer UnionLtd. The title of the project is Customer Focus on Supply Chain Management.The study starts with an Companys profile and also the need for study, review ofliterature 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 areanalyzed & interpreted, to find out the Supplier Performance. Some of the tools usedin 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 TABLESLIST OF CHARTS

IINTRODUCTIONPROFILE OF THE COMPANYNEED FOR THE STUDY

129

II REVIEW OF LITERATURE 10III OBJECTIVES OF THE STUDY 21IV RESEARCH METHODOLOGY 22V DATA ANALYSIS AND INTERPRETATION 24

VI FINDINGS OF THE STUDY,SUGGESTION AND RECOMMENDATIONS

3941

VII CONCLUSION 42

VIII LIMITATIONS OF THE STUDYSCOPE FOR THE FUTHER STUDY

4344

QUESTIONNAIREBIBILIOGRAPHY

4547

LIST OF TABLES

TABLE NO. NAME OF THE TABLE PAGE NO.5.1.1 SEX OF THE RESPONDENTS 245.1.2 OCCUPATION OF THE RESPONDENTS 255.1.3 CONSUME PONLAIT MILK 265.1.4 HOW FREQUENT DO CONSUME 275.1.5 MILK CONSUMPTION 285.1.6 PURCHASE MILK MADE FROM 295.1.7 LEADING SUPPLIER IN MILK 305.1.8 PRICE OF PRODUCT 315.1.9 OTHER THAN MILK WHICH PRODUCT DO YOU 325.1.10 RESPONDENTS PREFERENCE 335.1.11 PONLAIT IS AVAILABLE SUFFICENT IN MARKET 345.1.12 SATIFACTION LEVEL 355.1.13 PREFERENCE OTHER THAN THE PONLAIT 365.1.14 DEFECTS IN PONLAIT MILK 375.1.15 ANALYSIS BY CORRELATION 38

LIST OF CHARTS

CHART NO. NAME OF THE CHART PAGE NO5.1.1 SEX OF THE RESPONDENTS 245.1.2 OCCUPATION OF THE RESPONDENTS 255.1.3 CONSUME PONLAIT MILK 265.1.4 HOW FREQUENT DO CONSUME 275.1.5 MILK CONSUMPTION 285.1.6 PURCHASE MILK MADE FROM 295.1.7 LEADING SUPPLIER IN MILK 305.1.8 PRICE OF PRODUCT 315.1.9 OTHER THAN MILK WHICH PRODUCT DO YOU 325.1.10 RESPONDENTS PREFERENCE 335.1.11 PONLAIT IS AVAILABLE SUFFICENT IN MARKET 345.1.12 SATIFACTION LEVEL 355.1.13 PREFERENCE OTHER THAN THE PONLAIT 365.1.14 DEFECTS IN PONLAIT MILK 37

CHAPTER- I

INTRODUCTION

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the process of planning, implementing, andcontrolling the operations of the supply chain as efficiently as possible. Supply ChainManagement spans all movement and storage of raw materials, work-in-processinventory, and finished goods from point-of-origin to point-of-consumption.

Supply Chain Management encompasses the planning and management of allactivities involved in sourcing, procurement, conversion, and logistics managementactivities. Importantly, it also includes coordination and collaboration with channelpartners, which can be suppliers, intermediaries, third-party service providers, andcustomers.

In essence, Supply Chain Management integrates supply and demandmanagement within and across companies.

1.1 PROFILE OF THE COMPANY1.1.1 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 on07-02-1955. Started in a tiny shed its primary objective and focus was to supplymilk to the urban consumers

As time passed the supply society has diversified its activity from consumer toproducers, and concentrated in increasing the milk production by giving variousassistance / incentives to the milk-producing farmers.

The Union started procuring milk from the village producers on quality basis from1970 onwards. To keep pace with the milk production, the Milk Union has alsoset 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 milkproducers Union with objective of shifting its focus on the milk producingcommunity and its welfare.

With the success of the Amul, the National Dairy Development Board hasprogrammed to replicate the Anand pattern (collecting the quality milk from themembers and payment of remunerative price in cash regularly and providing milkproduction enhancement) all over the nation. The Pondicherry Co- operative MilkProducers Union has also taken up the worlds largest Dairy ExpansionProgramme, the Operation Flood during the year 1982-1985. With thelaunching of Operation flood Programme the Dairy Plant was expanded to 50,000ltrs capacity per day. All the milk primary co-operative societies were convertedto Anand pattern societies.

Ponlait has entered the MNEMONIC club conceived, implemented, promoted andpopularized by the NDDB for the entire Dairy Co-operative of the Nation, witheffect from 30.03.2002.

Thus Ponlait was committed to improve the economic and social uplift of therural farming / milk producing community and supplying the urban consumerswith good quality milk

The only institution in Pondicherry is extending more than a crore every month torural economy in cash for the benefit of farming community, by way of MilkPurchase.

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 DairyCo-operative Societies.

There are 34798 Cattle owners who became members in the Dairy Co-operativeSocieties at villages and supplying milk to Ponlait.

Milk Supplying members are paid fortnightly in cash with remunerative milkprice and inputs in kind.

The Primary responsibility of procurement and input section is to procure cleanand quality milk from the village cattle owners and carryout milk productionenhancement services.

To achieve this objective, the procurement & Input wing is conducting variousprogrammes like Clean Milk Production and Quality Milk Procurement at DairyCo-operative Societies.

Besides the main activity, the milk-supplying members milch animals are alsoproviding 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 of80,000 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 areproduced as per the consumer requirements. The daily consumer demand is metfully. Present demand is 62,000 to 65,000 liters per day.

From the August 2002, the Dairy is supplying 15,000 liters of standardised milkto school children in the morning under Sri Rajiv Gandhi School Children Breakfast scheme, 1st of its kind in the nation organized by the government ofpondicherry. Besides at present the union is 28,500 liters if milk supplying to thestudents both in the morning and evening. The Evening milk supply effected from20-10-2005 as desired by the government of pondicherry.

Besides milk processing and grading, the Dairy is equipped to produce 15 MTS ofghee and 1500 kgs of Khoa (milk peda) monthly. The Ponlait ghee and khoa aremuch sought after products in the pondicherry town.

The Dairy is producing 1000-1500 pockets of flavoured milk and 500-1000 ofbutter milk every day and sells in pondicherry town.

The Dairy is also producing Paneer and Curd as per the requirement of theconsumer as and when needed.

C. QUALITY ASSURANCE BY MAKING PROPER MILK TESTING INLABORATORY AT DAIRY

Since the milk is highly perishable commodity, proper care is taken to maintainquality 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 testedat the primary society.

The milk tested for the quality at society level reaches the Dairy Plant. The rawmilk is tested organoleptically at the Dairy reception dock for its quality and thenthe individual society sample are tested for its fat content and other microbialstandards.

Apart form this, the processed milk is sampled at every point of storage during theprocess and proper care is taken to maintain quality standards.

Finally the different varieties of milk are graded and kept ready for packing to theconsumers. The pouched milk samples are randomly taken and tested for its shelflife after dispatch of the consumers. Presently the milk is dispatched to the marketat 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 thedifferent segments of the market, under its brand name Ponlait.

Ponlait is the number one milk brand in the Pondicherry town. Though there aremany private players in the market, Ponlait is the major market shareholder. Amarket survey finding indicates that the present market share of Ponlait is around52%.

The present average market throughput is 62,000 ltrs per day and the sales is inthe uptrend. It is anticipated that the sales curve may touch its peak (60,100 ltrsmonthly average) during January 2006.

To cater the urban population, 180 retail outlets are operated by retail salesagents. The retail outlets are supplied with milk through a network 10 milkdistribution 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 suchparlours.

E. CATTLE FEED

Ponlait owns a Cattle Feed Plant of 5 MT per day capacity in ThattanchavadyIndustrial Estate, Pondicherry-9

Compounded Cattle Feed is produced with cost effective ingredients and suppliedto the members through Dairy Co-operative Societies on non profit motive.

Ponlait is extending subsidy of Rs.100/- as provided by the Government ofPondicherry to each bag containing 50 Kgs of Feed out of the total cost ofRs.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 managementcomprising 12 elected representatives from the Presidents of Dairy Co-operativeSocieties and a nominee from National Dairy Development Board, Co-operativeDepartment of Animal Husbandry and Managing Director of the Milk Union.

Since the committee of management is dissolved, the Administrator manned by aDeputy Registrar form the Co-operative Department is looking after in lieu of theBoard of Management with effect from 06.09.2002.

As per the order of the High Court, Chennai, an Advisory Board with thefollowing three members has been constituted by the RCS in order to guide theAdministrator by making major policy decisions and other administrative matters.1. Registrar of Co-operative Societies - Chairman2. State Director, NDDB, Erode - Members3. Director, AHD, Pondicherry - Members

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

1.1.3 MILESTONES OF THE COMPANYSL.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

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D.Help

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Fodde

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Extn (A

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Sr.As

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AM (C

FU)

AM (M

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AM (BMC)

DM (Acct

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(QC)

D.Help

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Senior

Assts

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Cleric

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sts

Sales

Super

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D.Help

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Tech.

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D.Help

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Cashi

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Sr. As

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Supt.

DA(Ba

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D.Help

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Manag

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ADMI

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PA to M

D

Steno

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Asst.

1.2. NEED FOR STUDY

Customer focus on supply management (ponlait) is made for special purpose to improvethe 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 dont prefer ponlait and reason for non consumption

Who is the main Customer and which satisfies them?

CHAPTER-II

REVIEW OF LITERATURE

SUPPLY CHAIN MANAGEMENTSupply chain management (SCM) is the process of planning, implementing, and

controlling the operations of the supply chain as efficiently as possible. Supply ChainManagement spans all movement and storage of raw materials, work-in-processinventory, and finished goods from point-of-origin to point-of-consumption.

The definition one American professional association put forward is that SupplyChain Management encompasses the planning and management of all activities involvedin sourcing, procurement, conversion, and logistics management activities. Importantly, italso includes coordination and collaboration with channel partners, which can besuppliers, intermediaries, third-party service providers, and customers. In essence, SupplyChain Management integrates supply and demand management within and acrosscompanies.Some experts distinguish Supply Chain Management and logistics, while others considerthe 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 possibleoccurring events and factors that can cause a disruption in a supply chain. With SCEMpossible scenarios can be created and solutions can be planned.

Supply chain management problemsSupply chain management must address the following problems:Distribution Network Configuration: Number and location of suppliers, productionfacilities, 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 valuableinformation, 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 fundsacross 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/functionsSupply chain management is a cross-functional approach to managing the movement ofraw materials into an organization and the movement of finished goods out of theorganization toward the end-consumer. As corporations strive to focus on corecompetencies and become more flexible, they have reduced their ownership of rawmaterials sources and distribution channels. These functions are increasingly beingoutsourced to other corporations that can perform the activities better or more costeffectively. The effect has been to increase the number of companies involved insatisfying consumer demand, while reducing management control of daily logisticsoperations. Less control and more supply chain partners led to the creation of supplychain management concepts. The purpose of supply chain management is to improvetrust and collaboration among supply chain partners, thus improving inventory visibilityand improving inventory velocity.Several models have been proposed for understanding the activities required to managematerial movements across organizational and functional boundaries. SCOR is a supplychain management model promoted by the Supply Chain Management Council. Anothermodel is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supplychain activities can be grouped into strategic, tactical, and operational levels of activities.

StrategicStrategic network optimization, including the number, location, and size of warehouses,distribution centers and facilities.Strategic partnership with suppliers, distributors, and customers, creating communicationchannels 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 optimallyintegrated into the supply chain, load managementInformation Technology infrastructure, to support supply chain operations.Where to make and what to make or buy decisionsAlign overall organizational strategy with supply strategyTacticalSourcing contracts and other purchasing decisions.Production decisions, including contracting, locations, scheduling, and planning processdefinition.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 practicesthroughout the enterprise.Milestone paymentsOperationalDaily production and distribution planning, including all nodes in the supply chain.Production scheduling for each manufacturing facility in the supply chain (minute byminute).Demand planning and forecasting, coordinating the demand forecast of all customers andsharing the forecast with all suppliers.Sourcing planning, including current inventory and forecast demand, in collaborationwith all suppliers.Inbound operations, including transportation from suppliers and receiving inventory.Production operations, including the consumption of materials and flow of finishedgoods.

Outbound operations, including all fulfillment activities and transportation to customers.Order promising, accounting for all constraints in the supply chain, including allsuppliers, manufacturing facilities, distribution centers, and other customers.

Supply chain managementOrganizations increasingly find that they must rely on effective supply chains, ornetworks, to successfully compete in the global market and networked economy. In PeterDrucker's (1998) management's new paradigms, this concept of business relationshipsextends beyond traditional enterprise boundaries and seeks to organize entire businessprocesses throughout a value chain of multiple companies.During the past decades, globalization, outsourcing and information technology haveenabled many organizations such as Dell and Hewlett Packard, to successfully operatesolid collaborative supply networks in which each specialized business partner focuses ononly a few key strategic activities (Scott, 1993). This inter-organizational supply networkcan be acknowledged as a new form of organization. However, with the complicatedinteractions among the players, the network structure fits neither "market" nor"hierarchy" categories (Powell, 1990). It is not clear what kind of performance impactsdifferent supply network structures could have on firms, and little is known about thecoordination conditions and trade-offs that may exist among the players. From a system'spoint of view, a complex network structure can be decomposed into individualcomponent firms (Zhang and Dilts, 2004). Traditionally, companies in a supply networkconcentrate on the inputs and outputs of the processes, with little concern for the internalmanagement working of other individual players. Therefore, the choice of internalmanagement 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 havecontributed to the development of supply chain networks. First, as an outcome ofglobalization and proliferation of multi-national companies, joint ventures, strategicalliances 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 incoordination among the members of the supply chain network (Coase, 1998).Many researchers have recognized these kinds of supply network structure as a neworganization form, using terms such as "Keiretsu", "Extended Enterprise", "VirtualCorporation", Global Production Network", and "Next Generation ManufacturingSystem". In general, such a structure can be defined as "a group of semi-independentorganizations, each with their capabilities, which collaborate in ever-changingconstellations to serve one or more markets in order to achieve some business goalspecific to that collaboration" (Akkermans, 2001).

Supply chain business process integration

Successful SCM requires a change from managing individual functions tointegrating activities into key supply chain processes. An example scenario: thepurchasing 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 partnerscan only be fully leveraged through process integration.Supply chain business process integration involves collaborative work between buyersand suppliers, joint product development, common systems and shared information.According to Lambert and Cooper (2000) operating an integrated supply chain requirescontinuous information flows, which in turn assist to achieve the best product flows.However, in many companies, management has reached the conclusion that optimizingthe product flows cannot be accomplished without implementing a process approach tothe business. The key supply chain processes stated by Lambert (2004) are:Customer relationship managementCustomer service managementDemand managementOrder fulfillmentManufacturing flow management

Supplier relationship managementProduct development and commercializationReturns managementOne could suggest other key critical supply business processes combining these processesstated by Lambert such as:

Customer service managementProcurement Product development and commercialization Manufacturing flow

management/support Physical distribution Outsourcing/partnerships Performancemeasurementa) Customer service management processCustomer Relationship Management concerns the relationship between the organizationand its customers.Customer service provides the source of customer information. It alsoprovides the customer with real-time information on promising dates and productavailability 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 customersestablish and maintain customer rapportproduce positive feelings in the organization and the customers

b) Procurement processStrategic plans are developed with suppliers to support the manufacturing flowmanagement process and development of new products. In firms where operations extendglobally, 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 andproduct development is achieved. Also, the purchasing function develops rapidcommunication systems, such as electronic data interchange (EDI) and Internet linkagesto transfer possible requirements more rapidly. Activities related to obtaining productsand materials from outside suppliers. This requires performing resource planning, supplysourcing, negotiation, order placement, inbound transportation, storage and handling and

quality assurance. Also, includes the responsibility to coordinate with suppliers inscheduling, supply continuity, hedging, and research to new sources or programmes.

c) Product development and commercializationHere, customers and suppliers must be united into the product development process, thusto reduce time to market. As product life cycles shorten, the appropriate products must bedeveloped and successfully launched in ever shorter time-schedules to remaincompetitive. According to Lambert and Cooper (2000), managers of the productdevelopment and commercialization process must:coordinate with customer relationship management to identify customer-articulatedneeds;select materials and suppliers in conjunction with procurement, anddevelop production technology in manufacturing flow to manufacture and integrate intothe best supply chain flow for the product/market combination.

d) Manufacturing flow management processThe manufacturing process is produced and supplies products to the distribution channelsbased on past forecasts. Manufacturing processes must be flexible to respond to marketchanges, and must accommodate mass customization. Orders are processes operating ona just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flowprocess lead to shorter cycle times, meaning improved responsiveness and efficiency ofdemand to customers. Activities related to planning, scheduling and supportingmanufacturing operations, such as work-in-process storage, handling, transportation, andtime phasing of components, inventory at manufacturing sites and maximum flexibility inthe coordination of geographic and final assemblies postponement of physicaldistribution operations.

e) Physical distributionThis concerns movement of a finished product/service to customers. In physicaldistribution, the customer is the final destination of a marketing channel, and theavailability 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 ofcustomer service become an integral part of marketing, thus it links a marketing channelwith its customers (e.g. links manufacturers, wholesalers, retailers).

f) Outsourcing/partnershipsThis is not just outsourcing the procurement of materials and components, but alsooutsourcing of services that traditionally have been provided in-house. The logic of thistrend is that the company will increasingly focus on those activities in the value chainwhere it has a distinctive advantage and everything else it will outsource. This movementhas been particularly evident in logistics where the provision of transport, warehousingand inventory control is increasingly subcontracted to specialists or logistics partners.Also, to manage and control this network of partners and suppliers requires a blend ofboth central and local involvement. Hence, strategic decisions need to be taken centrallywith the monitoring and control of supplier performance and day-to-day liaison withlogistics partners being best managed at a local level.

g) Performance measurementExperts found a strong relationship from the largest arcs of supplier and customerintegration to market share and profitability. By taking advantage of supplier capabilitiesand emphasizing a long-term supply chain perspective in customer relationships can beboth correlated with firm performance. As logistics competency becomes a more criticalfactor in creating and maintaining competitive advantage, logistics measurement becomesincreasingly important because the difference between profitable and unprofitableoperations becomes more narrow. A.T. Kearney Consultants (1985) noted that firmsengaging in comprehensive performance measurement realized improvements in overallproductivity. According to experts internal measures are generally collected and analyzedby the firm including Cost Customer Service Productivity measures Asset measurement,and Quality.External performance measurement is examined through customer perception measuresand "best practice" benchmarking, and includes 1) customer perception measurement,and 2) best practice benchmarking.

Components of Supply Chain Management are 1. Standardisation 2. Postponement3. Customisation

Supply chain management components integration

The management components of SCMThe 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 thenumber and level, ranging from low to high, of components added to the link (Ellram andCooper, 1990; Houlihan, 1985). Consequently, adding more management components orincreasing the level of each component can increase the level of integration of thebusiness process link. The literature on business process reengineering, buyer-supplierrelationships, and SCM suggests various possible components that must receivemanagerial attention when managing supply relationships. Lambert and Cooper (2000)identified the following components which are:

1) Planning and control2) Work structure3) Organization structure4) Product flow facility structure5) Information flow facility structure6) Management methods7) Power and leadership structure8) Risk and reward structure9) Culture and attitude

However, a more careful examination of the existing literature will lead us to amore comprehensive structure of what should be the key critical supply chaincomponents, the "branches" of the previous identified supply chain business processes,that is what kind of relationship the components may have that are related with suppliersand customers accordingly.

Bowersox and Closs states that the emphasis on cooperation represents thesynergism 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 theinventory ownership responsibility or assume other aspects financial risk, thus includingprimary level components (Bowersox and Closs, 1996).

A secondary level participant (specialized), is a business that participates in channelrelationships by performing essential services for primary participants, thus includingsecondary level components, which are supporting the primary ones. Also, third levelchannel participants and components may be included, that will support the primary levelchannel participants, and which are the fundamental branches of the secondary levelcomponents.

Consequently, Lambert and Cooper's framework of supply chain components, doesnot lead us to the conclusion about what are the primary or secondary (specialized) levelsupply chain components ( see Bowersox and Closs, 1996, p.g. 93), that is what supplychain components should be viewed as primary or secondary, and how should thesecomponents be structured in order to have a more comprehensive supply chain structureand 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 chaincomponents (Fig.8):

For customer service management: Includes the primary level component ofcustomer relationship management, and secondary level components such asbenchmarking and order fulfillment.

For product development and commercialization: Includes the primary levelcomponent of Product Data Management (PDM), and secondary level components suchas market share, customer satisfaction, profit margins, and returns to stakeholders.

For physical distribution, Manufacturing support and Procurement: Includesthe primary level component of enterprise resource planning (ERP), with secondary levelcomponents such as warehouse management, material management, manufacturingplanning, personnel management, and postponement (order management).

For performance measurement: This includes the primary level component oflogistics performance measurement, which is correlated with the information flow facilitystructure within the organization. Secondary level components may include four types ofmeasurement such as: variation, direction, decision and policy measurements. Morespecifically, in accordance with these secondary level components total cost analysis(TCA), customer profitability analysis (CPA), and Asset management could be concernedas well. In general, information flow facility structure is regarded by two importantrequirements, which are a) planning and Coordination flows, and b)operationalrequirements.

For outsourcing: This includes the primary level component of managementmethods and the company's cutting-edge strategy and its vital strategic objectives that thecompany will identify and adopt for particular strategic initiatives in key the areas oftechnology information, operations, manufacturing capabilities, and logistics (secondarylevel 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 thequestions are consist of multiple choices. The questionnaires were conducted in Englishas well as in Tamil. Generally 23 questions are prepared and asked to the customers.

Secondary DataSecondary 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 areMultiple choice and close ended ( Yes/ No) Questions.4.4 DEFINING THE POPULATIONS

The Population or Universe can be Finite or infinite. The population is saidto be finite if it consist of a fixed number of elements so that it is possible to enumerate itin its totality. So In this projects consist of finite population.

4.5 SAMPLE SIZE About 50 sample are taken in PONLAIT

4.6 FIELD WORKThe 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

formulaNo of RespondentPercentage of Respondent = x 100Total no. of Respondents

4.8.4 SIMPLE CORRELATION:

In probability theory and statistics, correlation, also called correlationcoefficient, indicates the strength and direction of a linear relationship between tworandom variables. In general statistical usage, correlation or co-relation refers to thedeparture of two variables from independence.

Formula:

r = (X-Xi) (Y-Yi)(X-Xi) 2 (Y-Yi) 2

WhereX- Reason for repurchaseY-Preference of respondent

CHAPTER V5. DATA ANALYSIS AND INTERPRETATION

5.1 PERCENTAGE METHOD - GENERAL INFORMATIONTABLE: 5.1.1

SEX OF THE RESPONDENT

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 MALE 35 70.02 FEMALE 15 30.0

TOTAL 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 employees, 70% of theRespondents are male. Remaining 30 % of the respondents are female.

CHART: 5.1.1

femalemaleSex

60

40

20

0

Percent

Sex

TABLE 5.1.2OCCUPATION OF THE RESPONDENTS

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Business 5 10.02 Employee 21 42.03 Student 22 44.04 Farmer 2 4.0

Total 50 100.0

Source: Primary DataInference: From the above table it is inferred that out of 50 employees, 44% of theRespondent occupations are students 42 % of the respondents occupations are Employee

CHART 5.1.2

FarmerStudentEmployeeBusinessOccupation

50

40

30

20

10

0

Percent

Occupation

TABLE: 5.1.3DO U CONSUME PONLAIT MILK

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Yes 40 80.02 No 10 20.0

TOTAL 50 100.0

Source: Primary DataInference ; From the above table it is inferred that out of 50 employees, 80% of theRespondents consume ponlait milk , 20 % of the Respondents consume ponlait milk.

CHART: 5.1.3

TABLE: 5.1.4

NoYesDO U CONSUME PONLAIT MILK

80

60

40

20

0

Percent

DO U CONSUME PONLAIT MILK

IF YES HOW FREQUENT DO CONSUME

S.NO OPTIONSNO OF

RESPONDENTS

PERCENT

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

TOTAL 50 100.0

Source: Primary DataInference; From the above table it is inferred that out of 50 employees, 50% of theRespondents consume regularly, 30 % of the Respondents consume weekly once.

CHART: 5.1.4

TABLE: 5.1.5

RegularlyWeekly ThriceWeekly TwiceWeekly OnceIF YES HOW FREQUENT DO CONSUME

60

50

40

30

20

10

0

Percent

IF YES HOW FREQUENT DO CONSUME

MILK CONSUMPTIONS.NO OPTIONS

NO OFRESPONDENTS PERCENT

1 Whether you will go in search of yourpreferred 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 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 employees, 46% of theRespondents search for preferred brand regularly, 40 % of the Respondents consumeWhat ever brand available

CHART 5.1.5

TABLE: 5.1.6

You will not consume if yourprefered brand is not availableYou consume what ever brandAvailable from where youConsumeWheather you will go in searchOf your preferred brand.

MILK CONSUMPTION

50

40

30

20

10

0

Percent

MILK CONSUMPTION

PURCHASE MILK

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 From grocery shop 15 30.02 From ponlait parlours 11 22.03 From local merchant 17 34.04 From other sources 7 14.0

Total 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 employees, 30% of theRespondents purchase milk from grocery shop, 22 % of the Respondents purchase milkfrom parlour

CHART: 5.1.6

From other sourcesFrom local merchantFrom ponlait parloursFrom grocery shopPURCHASE MILK

40

30

20

10

0

Percent

PURCHASE MILK

TABLE: 5.1.7LEADING SUPPLIER

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Yes 44 88.02 No 6 12.0

TOTAL 50 100.0

Source: Primary DataInference: From the above table it is inferred that out of 50 employees, 88% ofthe Respondents are leading supplier, 22 % of the Respondents are not leading supplier

CHART 5.1.7

TABLE: 5.1.8PRICE

NoYesLEADING SUPPLIER

100

80

60

40

20

0

Percent

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 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 employees,40% of theRespondents Price are normal, 30 % of the Respondents Price are low.

CHART: 5.1.8

Very lowNormalLowHighPRICE

40

30

20

10

0

Percent

PRICE

TABLE: 5.1.9OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME

S.NO OPTIONS NO OF RESPONDENTS PERCENT1 Ghee 18 36.02 Khoa 14 28.03 Flower milk 9 18.04 Curd 9 18.0

TOTAL 50 100.0

Source: Primary DataInference: From the above table it is inferred that out of 50 employees,36% of theRespondents consume Ghee, 28 % of the Respondents consume Khoa.

CHART: 5.1.9

CurdFlower milkKhoaGheeOTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME

40

30

20

10

0

Percent

OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME

TABEL: 5.1.10WHY DO PREFER PONLAIT BECAUSE OF ITS

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 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 employees,48% of theRespondents prefer Quality, 20 % of the Respondents prefer Price.

CHART: 5.1.10

TABLE: 5.1.11

All the aboveBrand nameQualityPriceWHY DO PREFER PONLAIT BECAUSE OF ITS

50

40

30

20

10

0

Percent

WHY DO PREFER PONLAIT BECAUSE OF ITS

WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Yes 39 78.02 No 11 22.0

TOTAL 50 100.0

Source: Primary DataInference: From the above table it is inferred that out of 50 Respondents.39% of theRespondents of ponlait available in market , 11 % Respondents of ponlait not availablein market

CHART: 5.1.11

TABLE: 5.1.12

NoYesWHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

80

60

40

20

0

Percent

WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

CUSTOMER FOCUS ON SATIFACTION LEVEL

S.NO OPTIONS NO OF RESPONDENTS PERCENT1 Highly satisfied 15 30.02 Satisfied 19 38.03 Neutral 7 14.04 Dissatisfied 9 18.0

TOTAL 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 Respondents.38% of theRespondents are satisfied, 30 % Respondents are highly satisfied.

CHART: 5.1.12

TABLE: 5.1.13

DissatisfiedNeutralSatisfiedHighly satisfied

40

30

20

10

0

Percent

CUSTOMER FOCUS ON SATIFACTION LEVEL

CUSTOMER FOCUS ON SATIFACTION LEVEL

WHAT DO YOU PREFER OTHER THAN THE PONLAIT

S.NO OPTIONS NO OF RESPONDENTS PERCENT1 Arokiya 30 60.02 Russi 20 40.0

TOTAL 50 100.0

Source: Primary DataInference: From the above table it is inferred that out of 50 Respondents.60% of theRespondents prefer Arokiya, 40 % Respondents prefer Russi.

CHART: 5.1.13

TABLE: 5.1.14

RusiArokiyaWHAT DO YOU PREFER OTHER THAN THE PONLAIT

60

50

40

30

20

10

0

Percent

WHAT DO YOU PREFER OTHER THAN THE PONLAIT

DO YOU FIND ANY DEFECTS IN PONLAIT MILK

S.NO OPTIONSNO OF

RESPONDENTS PERCENT1 Yes 19 38.02 No 31 62.0

Total 50 100.0Source: Primary Data

Inference: From the above table it is inferred that out of 50 Respondents.62% of theRespondents have no defects, 38 % Respondents have defects.

CHART: 5.1.14

5.1.15 ANALYSIS BY CORRELATION BETWEEN REASON FORDEFECTS AND HEALTH PROBLEM

Table 5.1.15

NoYesDO YOU FIND ANY DEFECTS IN PONLAIT MILK

60

40

20

0

Percent

DO YOU FIND ANY DEFECTS IN PONLAIT MILK

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= 25Yi = 50/2 =25

Formula:r = (X-Xi) (Y-Yi)

(X-Xi)2 (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 ANDRECOMMENDATION

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 respondents 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 arelow.

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

48% of the respondents prefer Quality of ponalait, 20 % of the Respondentsprefer 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 inponlait milk

6.2. SUGGESTIONS & RECOMMENDATIONS

The suggestions are gathered from public to improve the ponlaitproduct according to customer focus.

They can improve their brand image in the presence of customer bydemonstration.

They have to improve their supply chain process for an effectiveutilization of products among customers.

They have to make awareness about the product amomg people byadvertisements.

They have to focus not only on milk but also in other products likeCurd, Ghee ,and Khoa to improve their market status.

CHAPTER VII

CONCLUSION

Customer Focus will help to learn customer buying attitude. In Ponlait not getmuch more awareness from public, so kindly to improve the advertisements and otherimprovements 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 aleading in milk products in puducherry..

The researcher has conducted the study for 30 days. A survey was conductedwith 50 respondents in the company by using questionnaire to collect theinformations from the respondents. After gathering the informations, the researcherhas analysis the data by interpreting the various tools. Based on the analysis, theresearcher 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 informations. Illiterate customers are also given informations. 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 successfullmarketing.

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 ofthe buying decision making.

CHAPTER IXQUESTIONAIRE

01. Name of the customer :02. Place :03. Age group 10-25

26-4041-6060-and above :

04. Sex : Male/Female05. 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/No08. If Yes How frequently you consume : a) Weekly once

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

14) why do you prefer ponlait because of its .a) Price b) qualityc) 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 prefera)Special b)General

18. Are you satisfied with the ponlait : Yes/No19. What is your satisfaction level

a) Highly satisfiedb) satisfiedc) Neutrald) Dissatisfied

e) Highly dissatisfied20. What do you prefer other than the ponlait ? :

a)Arokiya b)Russi21. Does ponlait milk is good your health? : Yes/No22. Do you find any defects in ponlait milk? : Yes/No23. 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