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CHAPTER
TITLES
PAGE NO.
LIST OF TABLES
LIST OF CHARTS
INTRODUCTION
PROFILE OF THE COMPANY
NEED FOR THE STUDY
13
22
II
REVIEW OF LITERATURE
23
III
33
IV
RESEARCH METHODOLOGY
35
38
VI
55
57
VII
CONCLUSION
58
VIII
60
61
62
BIBILIOGRAPHY
64
LIST OF TABLES
TABLE NO.
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
5.1.10
5.1.11
5.1.12
5.1.13
5.1.14
5.1.15
LIST OF CHARTS
CHART NO.
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
5.1.10
5.1.11
5.1.12
5.1.13
5.1.14
Chapter- I
Introduction
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. The best companies around the world are discovering a powerful new
source of competitive advantage. It's called supply-chain management and it encompasses all of
those integrated activities that bring product to market and create satisfied customers.
The Supply Chain Management Program integrates topics from manufacturing
operations, purchasing, transportation, and physical distribution into a unified program.
Successful supply chain management, then, coordinates and integrates all of these activities into
a seamless process. It embraces and links all of the partners in the chain. In addition to the
departments within the organization, these partners include vendors, carriers, third-party
companies, and information systems providers.
Within the organization, the supply chain refers to a wide range of functional areas.
These include Supply Chain Management-related activities such as inbound and outbound
transportation, warehousing, and inventory control. Sourcing, procurement, and supply
Management falls under the supply-chain umbrella, too. Forecasting, production planning And
scheduling, order processing, and customer service all are part of the process as well.
Importantly, it also embodies the information systems so necessary to monitor all of these
Activities.
Simply stated, "The supply chain encompasses all of those activities associated with
moving goods from the raw-materials stage through to the end user." Advocates for this business
process realized that significant productivity increases could only come from managing
relationships, information, and material flow across enterprise borders.
Supply Chain Management Today
If we take the view that Supply Chain Management is what Supply Chain Management
people do, then in 1997 Supply Chain Management has a firm hand on all aspects of physical
distribution and materials management. Seventy-five percent or more of respondents included
the following activities as part of their company's Supply Chain.
Management department functions:
Inventory management
Transportation service procurement
Materials handling
Inbound transportation
Transportation operations management
Warehousing management
Moreover, the Supply Chain Management department is expected to increase its range of
responsibilities, most often in line with the thinking that sees the order fulfillment process as one
co-ordinate set of activities. Thus the functions most often cited as planning to Formally include
in the Supply Chain Management department are:
Customer service performance monitoring
Order processing/customer service
Supply Chain Management budget forecasting
On the other hand, there are certain functions which some of us might feel logically
belong to Supply Chain Management which companies feel are the proper domain of other
departments. Most difficult to bring under the umbrella of Supply Chain Management are:
Third party invoice payment/audit
Sales forecasting
Master production planning
Supply Chain Management becomes a tool to help accomplish corporate strategic objectives:
Reducing working capital,
Taking assets off the balance sheet,
Accelerating cash-to-cash cycles,
Increasing inventory turns, and so on.
That is why it is important to first understand the customer's true needs, and then work
back from that, Morehouse says: Once the correct information is in hand, companies can
design their supply-chain processes to provide what the customer really needs. Without that
information, says Youngberg, companies risk falling into the "wasted excellence" trap, providing
a higher service level or faster cycle time than is necessary. "It doesn't provide you with a
competitive advantage, but it saddles you with costs that may not [yield] you anything," he
explains. Here is an example of a company that uses chemicals stored in tanks to manufacture its
products.
The chemical supplier discovered--to its surprise--which the most important thing to the
manufacturer was not how quickly it delivered the raw material, but rather how well the vendor
monitored the supply of the chemical to ensure that it never ran out. For the customer, reliability
outweighed all other considerations. How can it be accomplished? Ideally, product is received
and put away to a location from where you will pick it. While picking the product it should be
placed directly in the shipping carton. A weigh scale checks each picked order line. As errors are
found they are corrected immediately. The last step in the process would be to insert the invoice,
seal the carton and apply a shipping label.
During this process product has been handled only for put away (only cross-docking can
eliminate that) and for picking. No other product handling. Handling steps are reduced to the
most basic needs. Such processes are possible and they don't require a lot of automation. They
need a WMS, RF terminals for put away and picking and well maintained product information.
The process delivers an error free shipment, completed in one handling step, provides a direct
quality feedback to the operator and allows you to manage each worker based on his or her
individual performance = quality + output.
1.3 IMPLEMENTATION OF SUPPLY CHAIN PROCEDURE
Steps-actions/Phases
Subsequent actions to implement the supply-chain agenda, which Kearney says should be
carried out by individual project teams, typically fall into these broad categories:
Designing the long-term supply-chain structure to position the company in the right roles in the
right supply chains with the right customers and suppliers.
3. Implementation
10
Refers to responsibility for the tendering of equipment and supplier selection, contract
negotiation and placement. Contract Management through to completion to ensure that the
project is progressed in accordance with the requirements of time, cost and quality. Work with
the client on preparing any organizational changes and training to ensure a smooth start to the
new operation.
There has been found that many companies have not thought comprehensively about the
design of their supply chains. Often, their attempts to achieve excellence have been focused on
perhaps one or two supply chain building blocks--and not, as they should be, on all of the
dimensions required for world-class performance. The framework below outlines the five key
dimensions of supply chain management through the implementation procedure that are required
to achieve superior performance. These areas must be addressed iteratively and, generally, in a
hierarchical fashion:
A. Strategy--specifically, the alignment of supply chain strategies with the overall business
direction. Key decision points for managers here include:
What is required to align the supply chain with the business strategy?
What level of customer service must we provide to each customer segment to compete
effectively?
Which channels of distribution best meet our goals and our customers' needs?
B. Infrastructure, which affects cost-service performance and establishes the boundaries within
which the supply chain must operate. Pertinent questions include:
How must the physical network of plants and distribution be structured?
Can we rationalize our current network?
Can we use contract manufacturing or third-party logistics capabilities?
What transportation services can best link together the network of facilities?
Which activities should we outsource?
C. Process--the drive to achieve functional excellence and integration across all major processes.
Managers must ask themselves the following:
What are the core supply chain processes driving the business?
How can we adapt best-in-class approaches to our core processes (e.g., manufacturing,
integrated demand planning, procurement, cycle-time compression, dynamic deployment)
How can we build linkages with our suppliers and customers?
11
12
Chapter - 2
Profile of the Company
13
2.2 Products
Dodla Dairy Ltd., incorporated in the year 1995 as a Public Limited Company. The core
activity is procuring, processing and Marketing of Milk and Milk Products. The company has
14
created integrated Cold Chain facilities from producer to consumer to ensure Farm Fresh Milk at
their door steps. The Main Dairy plant at Nellore was set up in the year 1998.
Year on year the operations expanded to other places viz., Penumur, Palamaneru, Badvel,
Sattenapally, Tanuku of Andhra Pradesh and Sindhnoor of Karnataka State. Dodla Dairy's Milk
Products are available in Andhra Pradesh, Karnataka, Tamilnadu, Gujarat, Rajasthan and
Maharashtra states. At present the company is handling 7.5 Lakh Liters per Day. Today, the
Brand DODLA is the house hold name in India. The annual turnover of the company was 636
Crores during the 2011-12 financial years.
Dodla diary comprises of the following products:
Milk
Flavored milk
Buttermilk
Curd
Paneer
Ghee
Cooking Butter
Doodh peda.
2.3 SALES
Dodla Dairys Milk products are available in Andhra Pradesh, Tamil Nadu, Karnataka,
Rajasthan, Gujarat and Maharashtra states. Dodla Dairy has ultra modern transportation facilities
to ensure the freshness of milk products till it reaches the customer doorstep.
At present the total liquid milk sale is more than 6.5 Lakh Liters and 6 Tons of Milk Products per
day. The Company has established more than 3000 dealer network for liquid Milk.
The Company has a wide network of more than 450 distributors and 14000 outlets across
India for Milk Products. The Products are also available at modern trade outlets like Reliance
and Food world etc.. Also the company has established exclusive parlors at various Cities and
Towns of south India
15
History tells us that Dodla dairy came to existence as Hyderabad Milk Supply Society
registered as 1st Co-operative Society in the Union Territory of Hyderabad on 07-021955. 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 liters 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 Hyderabad Co- operative Milk Producers Union has also taken up
the worlds largest Dairy Expansion Programmed, the Operation Flood during the year
1982-1985. With the launching of Operation flood Programmed the Dairy Plant was
expanded to 50,000 liters capacity per day. All the milk primary co-operative societies
were converted to Anand pattern societies.
Dodla dairy 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 Dodla dairy 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 Hyderabad is extending more than a crore every month to rural
economy in cash for the benefit of farming community, by way of Milk Purchase.
2.4 ACTIVITES OF DIFFERENT UNITS OF THE MILK UNION
16
The Dairy is producing 1000-1500 pockets of flavored milk and 500-1000 of butter milk
every day and sells in Hyderabad 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, Standardized 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 Hyderabad Co-operative Milk Producers Union is operating in the Hyderabad
market, selling three different varieties of milk catering to the different segments of the
market, under its brand name Dodla dairy.
Dodla dairy is the number one milk brand in the Hyderabad town. Though there are many
private players in the market, Dodla dairy is the major market shareholder. A market
survey finding indicates that the present market share of Dodla dairy is around 52%.
The present average market throughput is 62,000 liters per day and the sales is in the
uptrend. It is anticipated that the sales curve may touch its peak (60,100 liters monthly
average) during January 2006.
18
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 parlors to sell milk and ilk products. Milk is
made available to the urban consumers. 24 hours a day through 5 such parlors.
E. CATTLE FEED
Dodla dairy owns a Cattle Feed Plant of 5 MT per day capacity in Thattanchavady
Industrial Estate, Hyderabad-9
Compounded Cattle Feed is produced with cost effective ingredients and supplied to the
members through Dairy Co-operative Societies on non profit motive.
Dodla dairy is extending subsidy of Rs.100/- as provided by the Government of
Hyderabad 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 Dodla dairy Cattle Feed is supplied to Neighboring Villupuram Dist. Dairy
also.
Batch wise the Cattle feed is being tested its quality regularly.
The balanced compounded Cattle feed produced in the Dodla dairy Cattle Feed Plant is
proved to be effective for animal health and quality milk production.
F. ADMINISTRATION
The Dodla dairy 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
19
- Members
- Members
At present 173 permanent employees in various cadres are working in the Union.
2.4.1
SL.NO. MILESTONES
YEARS
1955
1968
1971
1971
1973
1984
1987&1988
1991
1992
10
1996&1997
11
2000&2001
12
2002
13
Milk supply to School Children under (Rajiv Gandhi Breakfast Scheme) 2002
Inaugurated Softy ice cream sales at Bus stand Parlor (Atchaya
14
Thiruthai)
2005
20
DEO /
Asst.
MIS (O)
Cashier
D.Helpers
Driver
Sr. Assts
DM
(Accts)
Supt.
Sr.Assts
Supdt
(Adm)
AM
(BMC)
Steno
PA to MD
D.Helpers
DA
(Bact/chem)
AM (QC)
Managing Director
ADMINISTRATOR
D.Helpers
Senior
Assts
AM (CFU)
Helpers
Clerical
Assts
Sales
Supervisor
Supdt
(Mktg)
AM (Mktg)
D.Helpers
Tech./
Sr.Assts
Supdt
(Store/
Prodct/Tech
)
DM (P&O)
D.Helpers/A
I
Driver
Fodder
Dev.Asst
Extn (Asst)
Sr.
Asst/Typist
DM (P&I)
Supdt (P&I)
21
22
Chapter - 3
Review of Literature
23
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.
3.3 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 designs 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
25
decisions,
including
quantity,
location,
and
quality
of
inventory.
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
26
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" (Ackermans, 2001).
3.4 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:
27
and commercialization
Manufacturing flow
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 programmers.
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-inprocess 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
29
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
narrower. 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. Customization
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
30
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
31
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).
32
Chapter - 4
Objectives of the Study
33
34
Consumer in Dodla
Chapter 5
Research Methodology
35
HYDERABAD
Percentage method
Chi-square test
Weighted average
Percentage of Respondent =
x 100
(X-Xi) (Y-Yi)
(X-Xi) 2 (Y-Yi) 2
Where
X- Reason for repurchase
Y-Preference of respondent
37
Chapter 6
Data Analysis and
Interpretation
38
S.NO
1
2
OPTIONS
MALE
FEMALE
TOTAL
NO
OF
RESPONDEN
TS
PERCENT
35
70.0
15
30.0
50
100.0
39
Sex
Perc
ent
60
40
20
0
male
female
Sex
Table 6.1.2
Occupation of the Respondents
S.NO
1
2
3
4
OPTIONS
Business
Employee
Student
Farmer
Total
NO
OF
RESPONDEN
TS
5
21
22
2
50
40
PERCENT
10.0
42.0
44.0
4.0
100.0
Inference: From the above table it is inferred that out of 50 employees, 44% of the Respondent
occupations are students
Occupation
50
Perc
ent
40
30
20
10
0
Business
Employee
Student
Occupation
Table: 6.1.3
Do U Consume Dodla Dairy Milk
41
Farmer
S.NO
1
2
OPTIONS
Yes
No
TOTAL
NO
OF
RESPONDENTS
40
10
50
PERCEN
T
80.0
20.0
100.0
Perc
ent
60
40
20
0
Yes
No
Table: 6.1.4
If Yes How Frequent Do Consume
42
S.NO
1
2
3
4
TOTAL
Source: Primary Data
OPTIONS
Weekly
Once
Weekly
Twice
Weekly
Thrice
Regularly
NO OF RESPONDENTS PERCENT
15
30.0
8.0
12.0
25
50
50.0
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: 6.1.4
60
50
Perc
ent
40
30
20
10
0
Weekly Once
Weekly Twice
Weekly Thrice
Table: 6.1.5
Milk Consumption
43
Regularly
S.NO
1
OPTIONS
Whether you will go in search of your
preferred brand.
2
You consume what ever brand
available from where you consume
3
You will not consume if your preferred
brand is not available
TOTAL
Source: Primary Data
NO
OF
RESPONDENTS PERCENT
23
46.0
20
40.0
14.0
50
100.0
Inference: From the above table it is inferred that out of 50 employees, 46% of the Respondents
search for preferred brand regularly, 40 % of the Respondents consume What ever brand
available
44
Chart6.1.5
MILK CONSUMPTION
50
Perc
ent
40
30
20
10
0
Wheather you will go in search
Of your preferred brand.
MILK CONSUMPTION
Table: 6.1.6
Purchase Milk
45
S.NO
1
OPTIONS
From grocery shop
2
3
4
NO
OF
RESPONDENTS PERCENT
15
30.0
11
17
7
50
22.0
34.0
14.0
100.0
Inference:From the above table it is inferred that out of 50 employees, 30% of the Respondents
purchase milk from grocery shop, 22 % of the Respondents purchase milk from parlour
CHART: 6.1.6
PURCHASE MILK
40
Perc
ent
30
20
10
0
From grocery shop
PURCHASE MILK
Table: 6.1.7
Leading Supplier
46
S.NO
1
OPTIONS
Yes
NO OF RESPONDENTS
44
PERCENT
88.0
No
12.0
TOTAL
50
100.0
LEADING SUPPLIER
100
Perc
ent
80
60
40
20
0
Yes
No
LEADING SUPPLIER
Table: 6.1.8
Price
47
S.NO
1
2
3
4
OPTIONS
High
Low
Normal
Very low
TOTAL
NO OF RESPONDENTS
13
15
20
2
50
PERCENT
26.0
30.0
40.0
4.0
100.0
PRICE
40
Perc
ent
30
20
10
0
High
Low
Normal
PRICE
Table: 6.1.9
Other Than Milk Which Product Do You Like To Consume
48
Very low
S.NO
1
2
3
4
OPTIONS
Ghee
Khoa
Flower milk
Curd
TOTAL
NO OF RESPONDENTS
18
14
9
9
50
PERCENT
36.0
28.0
18.0
18.0
100.0
40
Perc
ent
30
20
10
0
Ghee
Khoa
Flower milk
Curd
Table: 6.1.10
Why Do Prefer Dodla Dairy Because Of Its
49
S.NO
1
2
3
4
OPTIONS
Price
Quality
Brand name
All the above
TOTAL
NO OF RESPONDENTS
10
24
7
9
50
PERCENT
20.0
48.0
14.0
18.0
100.0
50
Perc
ent
40
30
20
10
0
Price
Quality
Brand name
Table: 6.1.11
Whether the Dodla Dairy Is Available Sufficient In Market
50
S.NO OPTIONS
1
Yes
2
NO OF RESPONDENTS
39
PERCENT
78.0
No
11
22.0
TOTAL
50
100.0
Perc
ent
60
40
20
0
Yes
No
Table: 6.1.12
Customer Focus On Satisfaction Level
51
S.NO
1
2
3
4
OPTIONS
Highly satisfied
Satisfied
Neutral
Dissatisfied
TOTAL
Source: Primary Data
NO OF RESPONDENTS
15
19
7
9
50
PERCENT
30.0
38.0
14.0
18.0
100.0
Inference: From the above table it is inferred that out of 50 Respondents.38% of the
Respondents is satisfied, 30 % Respondents are highly satisfied.
Chart: 6.1.12
CUSTOMER FOCUS ON SATIFACTION LEVEL
40
Perc
ent
30
20
10
0
Highly satisfied
Satisfied
Neutral
Dissatisfied
Table: 6.1.13
What Do You Prefer Other than The Dodla Dairy
52
S.NO
1
2
OPTIONS
Arokiya
Russi
NO OF RESPONDENTS PERCENT
30
60.0
20
40.0
TOTAL
50
100.0
50
Perc
ent
40
30
20
10
0
Arokiya
Rusi
Table: 6.1.14
Do You Find Any Defects in Dodla Dairy Milk
53
S.NO
1
2
OPTIONS
Yes
No
NO OF RESPONDENTS
19
31
Total
50
PERCENT
38.0
62.0
100.0
Perc
ent
60
40
20
0
Yes
No
5.1.15 Analysis by Correlation between Reason for Defects and Health Problem
Table 5.1.15
54
Factors
Health
Defects
X-Xi
Y-Yi
(X-Xi)
(Y-Yi)
(Y-Yi)2
Yes
30
19
-6
-30
25
36
No
20
31
-5
-30
25
36
Total
50
50
-60
50
72
Xi = 50/2= 25
Yi = 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.
55
56
FINDINGS OF STUDY
70% belongs to male, 30 %belongs to female
44% of the respondent occupations are students 42% of the respondents occupations
are Employee.
80% of the respondents consume Dodla dairy milk. Remaining 20 % of the peoples
consume other product.
50% of the respondents consume Dodla dairy milk regularly, 30 % of the
respondents consume Dodla dairy milk weekly once.
46% of the respondents search for preferred brand regularly, 40 % of the respondents
consumes whatever brand in market.
30% of the respondents purchase milk from grocery shop, 22 % of the respondents
purchase milk from parlor
88% of the Respondents responds that leading supplier are Dodla dairy 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 Dodla dairy, 20 % of the Respondents
prefer Price.
39% of the respondents respond that Dodla dairy available in market , 11 %
respondents of Dodla dairy not available in market
38% of the Respondents are satisfied, 30 % Respondents are highly satisfied
Other than Dodla dairy ,60% of the Respondents prefer Arokiya, 40 % Respondents
prefer Russi
57
58
Conclusion
59
Customer Focus will help to learn customer buying attitude. In Dodla dairy 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 DODLA DAIRY. 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 informations from the
respondents. After gathering the informations, the researcher has analysis the data by
interpreting the various tools. Based on the analysis, the researcher has given some suggestions
to the management to develop customer focus.
60
The project throws on the needs for learning buying behavior for successful marketing.
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.
61
Questionnaire
62
2. Place
3.
04. Sex
05. Occupation
:
:
:
:
Male/Female
Yes/No
a) Weekly once
b) Weekly twice
c) Weekly thrice
d) regularly
63
Yes/No
Yes/No
b)General
: Yes/No
64
Bibliography
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
65
:
: Yes/No
: Yes/No
66