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M/s. BioFields Impex Pvt Ltd.,

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A detailed end term project report of the role of
a Stockiest and use of IT for Fertilizer,
Pesticide, and Seeds Industry.
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cvbnmqwertyuiopasdfghjklzxcvbnmq PGDM – IB,09-11
Term - II

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Submitted by: Group no 5
Ankita (05), Deepak (17), Manas (29), Ranjan (41), Sourav (53)

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M/s. BioFields Impex Pvt Ltd.,

Acknowledgement

First we would extend our honest thank to our faculty Prof. Rupesh
Kumar Sinha for giving us the opportunity to conduct this project.

We also thank one and all who have helped in making key decisions and
discussion which allowed us to complete this project in time successfully.

Last but not least our families for extending their support.

We also thanks for the help from Two another Groups, Mr. Vijay (Group no
-1) & Mr. Anoop (Group no- 9).

: Members of Group 5

Ankita
Deepak
Manas
Ranjan
Sourav

M/s. BioFields Impex Pvt Ltd., Page 2


M/s. BioFields Impex Pvt Ltd.,

Table of Contents

Executive Summary ....................................................................................................................................... 4


Concept ..................................................................................................................................................... 4
Drivers ....................................................................................................................................................... 4
Business Proposition ..................................................................................................................................... 5
Business Structure ......................................................................................................................................... 6
Customer Profile............................................................................................................................................ 7
Organizational Structure ............................................................................................................................... 8
Infrastructure requirements for Execution.................................................................................................. 12
Business Process Modeling & Execution ..................................................................................................... 12
Object Modeling...................................................................................................................................... 13
IT Infrastructure Model ........................................................................................................................... 14
Financials .................................................................................................................................................... 17
Investment .............................................................................................................................................. 17
Assumptions ............................................................................................................................................ 18
Profit Margin ........................................................................................................................................... 18
Conclusion ................................................................................................................................................... 19
Bibliography ................................................................................................................................................ 20

M/s. BioFields Impex Pvt Ltd., Page 3


M/s. BioFields Impex Pvt Ltd.,

Executive Summary

Concept
In the current climate, controlling IT costs is more important than ever - and yet, at the
same time, businesses need a rich, reliable, secure IT infrastructure to stay competitive, this has
inspired us to come up with an efficient business plan for stockiest, that would make them self-
sufficient and keep them engaged in success story of any manufacturing and selling company by
switching over to Intelligent-Business (IB) a new way of doing Business.

“The first thing to be recognized with respect to Intelligent-Business is that it is not


necessary only for generating more sales but it can be adopted to improve the efficiency and
effectiveness of an organization unlike the previous versions of doing Business.”

Right from the Start of Manufacturing to inventory, distribution and transportation to


the consumption at end users the requirement of Information technology plays a pivotal role so
the concept of this business plan as stated explains how to implement a new concept called
Intelligent-Business in managing business with the co-contracting type of relationship in supply
chain which would be an essential setup for starting the business.

Drivers
In our country over 70% of the total population live in villages. There are states like U.P,
M.P, Bihar, Rajasthan and Orissa where rural population varies from 80 to 90 per cent.
Agriculture and agriculture related activities contribute to about 75% of the income in rural
areas.

The general impression is that the rural markets have potential only for agricultural
inputs like seeds, fertilizers and pesticides, cattle feed and agricultural machinery. More than
50% of the national income is generated in rural India and there are opportunities to market
modern goods and services in rural areas and also market agricultural products in urban areas.
Infact it has been estimated that the rural markets are growing at five times the rate of urban
markets. About 70% of bicycles, mechanical watches and radios and about 60% of batteries,
sewing machine and table fans are sold in rural India. At the same time the sales of color
television, washing machines, refrigerators, shampoos, face cream, mosquito repellent and
tooth paste are very low and there is tremendous potential for such products in rural markets.

While rural markets offer big attractions to the marketers, it is not easy to enter the
market and take a sizeable share of the market within a short period. This is due to low literacy,
low income, seasonal demand and problems with regards to transportation, communication

M/s. BioFields Impex Pvt Ltd., Page 4


M/s. BioFields Impex Pvt Ltd.,

and distribution channel. Further there are different groups based on religion, caste, education,
income and age. There is a need to understand the rural markets in terms of buyer behavior,
attitudes, beliefs and aspirations of people.

Business Proposition

In order to find the effective solutions from Information technology for stockiest in
fertilizer, seed and pesticide industry, The Basic expectations from IT would be with respect to
the following issues, based on the co-contracting type of relationship in supply chain.

 Effective Executive Information Systems: A well designed executive information systems


that will ensure that the activities at all the levels of marketing function are directed at
achieving the goals of the organization. Necessary monitoring and decision making tools
are required to be provided.
 Breaking Distance Barriers: The operations related to fertilizer marketing involve large
territories. I.T. should provide means of acquiring latest information from all parts so
that the managers have access to latest information.
 Meaningful Information: The problem of too much data or too little data needs to be
addressed. Mere provision of access to a large volume of data can lead to confusion.
The decision makers should not be inundated with too much of raw data. The data
should be provided as meaningful information which contributes to proper judgment in
decision-making.
 Raising Alerts: The systems should provide alerts to exceptions and achievements.
Projection and speculation reporting may also be provided.
 Interactivity: Interactive communication with facts and figures between various layers of
management needs to be provided.
 Online Support: Online support to sort out any problems along with dynamic
identification of an expert to assist in solving the problem, online access to policy guide
lines, etc. may be provided.
 Transforming the present marketing activity to a new paradigm of conducting business
electronically by switching over to Intelligent-Business.

M/s. BioFields Impex Pvt Ltd., Page 5


M/s. BioFields Impex Pvt Ltd.,

Business Structure

The business structure is based on the idea of Intelligent-Business - IB and a new way to
find each other’s areas of expertise, projects, and relationships when we are a stockiest, before
we can describe and find the exact way of managing a business for stockiest first we need to
understand the role and stockiest So we have classified the role of stockiest, in two
classifications i.e., Efficiency and Functions.

The Purpose of Stockiest is to obtain Efficiency of operations through integration of

1. Material Acquisition,
2. Material Movement, and
3. Material Storage.

Some Basic Functions of a stockiest are:

1. Shipping
2. Purchasing
3. Warehousing
4. Order Processing
5. Inventory Control

After knowing the proportion and basic role of a stockiest now we discuss the structure
which would be based on Co-contracting. Co-contracting is a term used to describe alliances
between organizations that have - Long term relationships but do not merge together, they
rather transfer some Equity (ownership), technology, Information, and People for maximizing
profit with service of efficiency. First we describe the Structure based on the relationship with
the manufacturing unit, Marketing Department, Stockiest, retailer, sales department and the
End users. So here is a brief diagram of a hierarchical structure.

Once the business structure is done and having the responsibilities describe in separate
departments and the above roles give a detailed description about the role of the stockiest,
now we focus on Customer profile and Organizational Structure for smooth flow of information
to have a clear and efficient operation within the organization so which proportionately have
an effect on other organization in supply chain. A Group of Companies right from Production
house (Bio-Utilitario Private Limited.,) and have a marketing Company, Later the owner ship is
transferred to Stockiest (BioFields Impex Private Limited., and the retails from different villages.

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M/s. BioFields Impex Pvt Ltd.,

Customer Profile

The target customer would be based on the assumption that the


marketing team of the company has one stockiest for each district in a
state and as a Stockiest we focus on further sub divisional level with are
classified on the basis on taluk, to have a better information
management system.

The role of the stockiest is to allocate a retailer as per the


demographic availability and feasibility of a retailer. The retailer’s are
selected based on the following requirements when there is a
franchisee allocated, and the reason for allocating the franchise/retail
through distribution channel would be due to the better knowledge of
the market, improve the efficiency and maximize profit through operations.

What are the requirements to open a franchise/retail outlet?

Good Exceptional
Financial Business Good Credit
Management customer
requirements Experience history
skills experience

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M/s. BioFields Impex Pvt Ltd.,

The selection of the retailer is at the sole discretion of the stockiest, as per the
fulfillment of the requirements by the applicant.

Financial requirements - An initial down payment is required when allotted a franchise;


since the total cost varies from place to place the minimum down payment will vary, the down
payment should come from non-borrowed personal sources. Individual with additional funds
may be better prepared for additional or multi-retail opportunity which we encourage.

Business Experience - Individuals who have demonstrated successful ownership or


management of multiple business units or have managed multiple departments.

Good management skills - Commitment to personally manage the day-to-day operations


of the retail business.

Good credit history - An acceptable credit history

Exceptional customer experience - The capability to effectively manage an organization


that recruits, trains, and motivates employees who deliver an exceptional customer experience
with an understanding of Indian farmer psychology.

Organizational Structure
The business model is based on the idea of Intelligent-Business – IB and we are focusing
on the role of stockiest who is M/s. BioFields Impex Pvt Ltd., who control the Distribution and
logistics of a district in Karnataka i.e., Udupi District, and the District is divided in to three taluk
which represent three zones based on the sales organization to get maximum flow of
information and we have further divided in to Three verticals based on the Products offered
also known as Product Verticals for better accountability and deep understanding of the
expertise area ;

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M/s. BioFields Impex Pvt Ltd.,

1. Seeds Vertical
2. Fertilizer Vertical
3. Pesticide Verticals

Under the Operations department the different verticals will have a similar
Organizational structure, as we are focusing on one warehouse for the entire district to reduce
the cost of warehousing and the Human resource. The warehouse would be as mentioned in
the following diagram with a headcount of 43 employees.

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M/s. BioFields Impex Pvt Ltd.,

The roles and responsibilities along with the qualifications required for the Designations
are as follows:

Roles and responsibly for Manager Qualifications


Operations
Manage Day to day Operations, Co-ordinate MBA/PGDM in Operations
with different Verticals and should be one Prior work experience In Sales and Operations
stop for all the Activities for the managing of around 5 Years.
Director, Check the regular activities on a
regular basis, and Decision making point for
any immediate approach, Continuous
interaction with all the People in all the
verticals. Should report to the MD.

Roles and responsibly for Manager HR Qualification


Manage and Forecast headcounts, Recruit, MBA /PGDM in HR
Develop Organizational development, policy Prior work experience in HRD of around
Recommendation, Employee Relationship, 3Years
Organization Building, and Salary Benefits.

Roles and responsibly for Manager IT Qualification


Work as Chief Operating Officer, Monitor MCA Or PGDCA
Network Communication, Help in getting new Prior 2 years work experience in Handling
ideas for the purpose of Managing the Business Intelligence.
Companies essential needs from Information
Technology with new ideas, Improve The IT
success rate,

Roles and responsibly for Asst Ops Manager Qualification


Manage Day to day Operations, Co-ordinate MBA/PGDM in Operations
with different People, should be one stop for Prior work experience In Sales and Operations
all the Activities in the vertical and report to of around 2 Years.
the Operations manager, coordinate with
other departmental Heads

Roles and responsibly for HR Coordinator Qualification


Report to HR Manager, involves in daily Head MBA in HR
count, Salary request to the Accountants, Prior work experience in HR Fresher
Getting information and reporting to the
manager, Developmental activities

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M/s. BioFields Impex Pvt Ltd.,

Roles and responsibly for IT Administrator Qualification


Manages Software packages, Administers Microsoft Certification, B.Tech CS
Network Applications, Prior Work experience in IT Admin for 2 years.

Roles and responsibly for Accountant Qualification


Preparing statements day to day transactions. B.Com
Maintain Bank and Cashbook. Preparing Petty Working knowledge on SAP ERP, Finance and
Cash vouchers, TDS, Service Tax, PF, ESI, Controlling (FICO), work exp with minimum of
Central Excise Returns, Sales Tax (VAT) 3 years.
returns, Filing monthly and annually.
Reconciling of accounts.

Roles and responsibly for IT D & M Qualification


Manages Software packages, Administers Microsoft Certification, B.Tech CS
Network Applications, Prior Work experience in IT Admin for 2 years.

Roles and responsibly for Logistic Controller Qualification


Working knowledge on SAP ERP Material B.Com
management (MM). Forecast the requirement Working knowledge on SAP ERP Material
of Stocks and Manage the End to end management (MM), work exp with minimum
Distribution of 3 years.

Roles and responsibly for Sales Executive Qualification


Need to co-ordinate with the Accounts and Graduation
Logistic so to Identify and Organize & Prior Work Experience in Sales and Marketing
structure the requirements of sales and with min 4 years. Preferably in the same
Report to the Asst ops Manager with the sales industry.
report.

Roles and responsibly for Store Keeper Qualification


Need to maintain the required stock levels and B.Com
intimate and coordinate with the Accounts Prior Work Experience in Store Keeping with
and Logistic department to efficient and min 2 years.
smooth flow of information, report to the Asst
Ops Manager

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M/s. BioFields Impex Pvt Ltd.,

Infrastructure requirements for Execution

In the initial stages the plan is to start at a location which is well connected to all
the villages, with well connected road and a hub based on the hub and spoke model, the major
infrastructure requirement for starting this venture is the space for administration and the
warehouse, which would be at SEZ1, Padubidri of Udupi District which is well connected with
road, rail and sea and availability of water and also a Tier II city, Office and warehouse situated
at the same place, and Other requirements include furniture and computers, chairs warehouse
equipments and a server. The premises would be purchased so as to have a better application
of cash flow and better Fund flows. The approximate details of the quantities required have
been specified in the financials section.

Business Process Modeling & Execution

Business Process: A specific ordering of work activities across time and place, with a
beginning, an end, and clearly defined inputs and outputs. Business processes are the structure
by which the organization physically does what is necessary to produce value for its customers
and are broadly defined across functions/departments.

Process Model: A representation of one or more processes and their associations that
an enterprise performs. Process modeling is a mechanism for describing and communicating
the current or intended future state of a business process.

Business Process Model: A mechanism for describing and communicating the current or
intended future state of a business process.

A right blend of management and IT is used to comprehensively design, execute and


monitor all business process involving humans, machines, organizations and environments.

With the aid of Business Process Development, complex activities are broken down to
simple segments and then each segment is overhauled, a module put in place to get the best
out of the resources available along with a monitoring system for easy troubleshooting. Finally
all working segment are then synchronized to create renewed and efficient working model, for
this we have adapted to the implementation of SAP Business One ERP2 suite.

1
Special Economic zone
2
Enterprise Resource Planning

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M/s. BioFields Impex Pvt Ltd.,

Vendor Middlemen Client

•Bio - Utilitario •BioFields Impex Pvt •Biofer Enterprises


Private Limited., ltd •Agronic Chemical &
Fertilizers

The Business process development and Execution is done through an intensive research
of how today’s business works and what are the factors considered to start a business with a
scope of improvement and Internal Audit control, The Basic Principle is “Intelligent-Business”
which is a focus on all the departments and are interlinked to one another through the
Information systems to indulge in better efficiency and Maximize Profit through Minimizing
cost through time taken for execution or Perform.

Object Modeling

Our work presents an approach to model resource dependencies among IT


infrastructure elements. Although our proposed attempt formalizing dependencies within IT
infrastructures is very basic we see many aspects of application. To understand the IT
infrastructure as a collection of related entities, we begin by constructing an object model of
the enterprise. Beginning with a traditional view of the IT infrastructure as a group of
technologies, the model should at least encompass all the IT assets which comprise the
enterprise IT infrastructure. These assets, from a company perspective, include the recesses
(documents), roles (human resources) and services. A service is a collection of IT resources that
is provided to a customer to enable them to operate their business on a day-to-day and long
term basis. The business process plan for execution of work from each department so as to
work towards the detailed business plan to support the successful delivery of the warm zone.

As stated earlier, our intent is to progress from the producer approach towards a service
centric approach with representation on infrastructure. To align the model more explicitly with
service representation, we can re-group the main entities so that the model reflects the
enterprise as a transaction between two roles – a Vendor and the Client.

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M/s. BioFields Impex Pvt Ltd.,

IT Infrastructure Model
• Business Gateway Layer
• Interface Into Applications and Systems
• Partners, Employees, Suppliers, customers
• Application Layer
• Programs that implement and automate business processes
• CRM, ERP, PROJ MGMT, ACCOUNTING, INVENTORY MGMT
• Physical Layer
• Tangible Building Blocks.
• HARDWARE: - Desktops, Mid-Range Systems, Mainframes Systems.
• Operating System: - Windows XP, Linux, UNIX.
• Physical Plant: - Cabling.

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M/s. BioFields Impex Pvt Ltd.,

• Services Layer
• Intermediate and general purpose services upon which applications are built.
• Email Management, transport, ID management, Data Warehouses, Data
Recovery, General Security.
• Telecommunication Layer
• Provides connectivity between all Layers.
• LAN\WAN, ISP, WIRELESS.

Some other factors can be considered to include to better the service with the Stock
handling capacity Sales order processing ,warehouse management using mobile phones,
Weather information relates to sales forecasting, inventory planning , reduction in logistics cost
Use Of SMS for Pull of information, Low cost - Technology solution, Use a template for sending
SMS on weather information . Template can be pushed to Mobiles depending on season.
Template to include, district, taluk, crop, acreage, crop condition, weather, dam water levels.

Farmer level, distributor level information can be used for inventory movement.
Advance knowledge of weather coupled with field data on acreage under coverage, will help
fertilizer companies in inventory management.

Lower inventory lower cost higher profitability

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M/s. BioFields Impex Pvt Ltd.,

Mobile IWM3 for the Warehouse Manager

The Warehouse manager can view different orders placed by each of the dealers and
the corresponding payments created by the dealers for the same, Once the dealer arrives at the
warehouse with the physical DD and DDFL, the warehouse manager can verify the same and
acknowledge physical receipt so that the payment is parked into SAP. The WM can then create
a delivery and delivery challan to enable the dealer pick up material from the warehouse.

This Kind of Business Process modeling and execution can be called as “Intelligent-
Business” Here is a sample Diagram of How “Intelligent-Business” put into practice.

3
Internet Warehouse Manager

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M/s. BioFields Impex Pvt Ltd.,

Financials

Investment
INVESTMENT
Particulars Per Unit Total
Land and Building (in Area and Amount)
Land from KIADB (2 acres - 8093.746Sq MTR) 160.00 1,350,000.00
Includes registration and Licensing to KIADB
(Source: http://www.indiaproperty.com/property/IP446871/)
Building (Construction)
Shed 1 500,000.00
Shed 2 500,000.00
Shed 3 500,000.00
Office Building 600,000.00
Total Building Cost (with Electrifications) 2,100,000.00
Specification of Shed's
Dimension
width (Ft) : 50
Length (ft) : 150
Height (ft) : 16
Roof Pitch : 2:12
(source : BuildingsGuide.com reference number 693852010-01-04)
Machinery & Equipments/Tools
DG Set (onsite with installation) 1 no caterpillar make 80Kv 750,000.00
(source: caterpiller.com)
Hydraulic Pallet Truck (9no's) 7,250.00 65,250.00
Hand Truck (3no's) 11,890.00 35,670.00
(Source :
http://www.alibaba.com/buyeroffers/hand_pallet_truck/IN------------
----.html)
Computers
Desktops (12 no's) 17,000.00 204,000.00
Laptops (7no's) 27,000.00 189,000.00
Printers (8 no's) 4,500.00 36,000.00
Computer Furniture 175,000.00
Setting up the Office 200,000.00
SAP Business One (software suite) 175,000.00
Aqua Guard Water Purifier (2no's) 10,000.00
Air Condition (2 no's) 50,000.00
Advertising and marketing 50,000.00
Miscellaneous 150,000.00
Total Investment 5,539,920.00

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M/s. BioFields Impex Pvt Ltd.,

(Total Amount required in words: Fifty Five Lacks Thirty Nine Thousand Nine Hundred and
Twenty Rupees Only)

The figures relating to the associated costs are an average for one single unit (are
expected to operate on similar line estimated)

Assumptions

 All figures are considered at current market rates.(Based on Quotations and References)
 Basic market conditions are assumed to stay constant through factors like inflation.

Profit Margin

The prices for each of the mentioned products and enlisted below for which we have
also specified the cost price, selling price with the Profit margin for each product. The prices are
in INR4.

Specification Name Of the Quantity per Cost Selling Profit


Products Bag Price Price
Seeds BIO paddy 12Kgs 190.00 225.00 35.00
BIO sunflower 2Kgs 75.00 95.00 20.00
BIO corn 2Kgs 75.00 95.00 20.00
Fertilizer BIO manure 50Kgs 200.00 260.00 60.00
Pesticides BIO zinc sulphate 10Kgs 190.00 230.00 40.00
BIO DAP 50Kgs 375.00 450.00 75.00

The variable cost for every month is assumed as follows, in INR

Particulars Amount
Salary 259,200.00
Electricity Charges 6,000.00
Telephone and Internet Charges 9,000.00
Housekeeping 4,000.00
Packing Materials 5,000.00
Stationery 3,000.00
Staff Welfare 10,000.00
Miscellaneous 3,800.00
Total Variable Cost Per Month 300,000.00

4
Indian Rupees

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M/s. BioFields Impex Pvt Ltd.,

While ascertaining the prices we have considered the market price of the competitors
and how we can create a Profit value chain in the process. In the Process to break even the
stockiest must have sales of atleast INR 64,00,000.00 In Words (Sixty Four Lacks Rupees Only)

Conclusion

“Business is a Business to do Business “Is an usual Phrase on which we do business, But


what we have leverage through our Business Plan/Detailed Project report is “Business is a
Business to do business with Intelligent-Business” where we not only talk about the usual way
of managing business but an efficient way of having an help from IT5. The management of IT-
Infrastructures has gained increased relevance to business as business processes and thus the
business profit rely on IT services, which in turn depend on the underlying infrastructure, The
changing states of resources and resource dependencies manifest the behavior of the
infrastructure and is correlated with the behavior of a service facing the user and thus with the
service quality.

Our work presents an approach to model resource dependencies among IT


infrastructure elements. Although our proposed attempt formalizing dependencies within IT
infrastructures is very basic we see many aspects of application. As the relation and
dependency elements of our model may be flexible enhanced adding attributes, calculation,
rules, etc.,

The analysis have been made with continuous interaction with marketing personal to
cover the ground reality from their experience, At the time of final selection the location of a
town preference is judged on center of gravity basis and it’s accessibility to the local farmers.
This center of gravity simulation and accessibility features matched well from the Google Maps.

The potential of Information Technology is yet to be fully tapped in the major segment
of the fertilizer industry with respect to marketing activity, notwithstanding the need for quality
information for decision making. The fertilizer marketing activity involves flow of large volume
of information, movement of documents in addition to handling of millions of tones of fertilizer
material. Information technology can play an important role in improving the efficiency and
effectiveness.

5
Information Technology

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M/s. BioFields Impex Pvt Ltd.,

Bibliography

Role of Information Technology in Fertilizer Marketing –S.c.Mittal & T.Sudhakar –IMSR

Fertilizer use by crop in India-Food & Agricultural Organization of the united nation-Rome 2005

Distribution Network analysis for marketing of fertilizer – Mapasia 2002 – New Delhi

Modeling The Enterprise IT Infrastructure-David chi & D L Tsui

http://www.mvdb.virginia.gov/

CDC- Capgemini -2004, New Delhi

Modeling Dependencies of IT Infrastructure Elements- Klaus Scheibenberger, Ingo Pansa, Germany


2007

http://www.krishiworld.com/html/field_crops11.html

http://www.sbsccsoftware.com/about.htm

http://www.agriculture-industry-india.com/national-seeds-policy/seed-distribution-
marketing.html

http://www.agriculture-industry-india.com/agriculture-products/

http://www.kumbangalore.com/Htmlpages/policy/162/index.htm

http://www.techno-preneur.net/technology/Project-Profiles/food/seed.htm

http://www.fao.org/docrep/009/a0257e/A0257E07.htm#fig5

http://www.knowledgebank.irri.org/GRCmanuals/default.htm#Protocol_for_seed_distribution.
htm

http://www.fao.org/docrep/009/a0257e/A0257E07.htm

http://www.mangalorechemicals.com/

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