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Ltd.,Pattom

1.1 INTRODUCTION

Today major corporations are rethinking their business in terms of the

internet and its new culture and capabilities. A very important characteristics of

modern business organization is the wide spread use of information technology

device for business process. E-business or E-commerce is an interaction with

business partners, where the interaction is enabled by information technology

that makes it possible to carry out business transactions electronically. E-

business methods enable companies to link their internal and external data

processing systems more efficiently and flexibly, to work more closely with

suppliers and partners, and to better satisfy the needs and expectations of their

customers.

E-business is the fundamental device of business. It is pervasively used

in all facts of business. The new innovation, break through and giant taps in

internet working technology had opened new opportunity for business people

to transcend the barriers of time and distance with internet spread. Day by day

more and more companies start up e-business. This study attempt to analyses

and investigate various software used in e-business application. My study

conducted in Thiruvanthapuram Regional Co-Operative Milk Producers Union

(TRCMPU) Ltd. An E-business project helps to study about the software and

major use of software used in organization

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1.2 Objectives

 To study about the present scenario of e-business in the organization

 To study about the software used in an organization

 To study about the e-billing is an organization.

1.3 Methodology

The data are collected through both quantitative and qualitative form of

analysis the data sources include:

1.3. 1 Primary Data

They are collected through:-

 Interviews

 Observations etc.

1.3.2 Secondary Data

They are collected through

 Company Management

 Company website

 Journals etc

1.4 Scope of the Study

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The study is mainly focused on software used in an organization. The

study provides an idea about the practical side of an organization and the e-

business. E-business provides an opportunity suppliers to get information and

feed back from users of their products and services that are better suited to the

needs of the customers. An E-business project will help people to study how

an information system has been successfully implemented. Hence the

advantages of E-business in an organization can be studied.

1.5 Limitations

 The time allotted to complete the e-project is not

sufficient.

 Difficulty to get data from the top managers.

 The information obtained is not complete and

accurate.

1.6 CHAPTERISATION
This project is divided in to six chapters:-

Chapter1: Introduction

Chapter2: E-business Theoretical perspective

Chapter3: E-business in the industry

Chapter4: E-business in the organization

Chapter5: Findings and suggestions

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Chapter6: conclusion

2.1 INTRODUCTION

Electronic Business commonly referred to as e-business or e-business

may be defined as the civilization of information and all the activities of

business commerce constitutes the exchange of products and services between

business, groups and individuals and can be run as one of the essential

activities of any business. Electronic commerce focuses on the use of ICT to

enable the external activities and relationship of the business with individuals,

groups and other businesses. Electronic business methods enable companies to

link their internal and external data processing system more efficiently and

flexibly to work more closely with suppliers and partners of their customers.

In practice, e-business is more than just e-commerce. While e-business

regards to strategies focus with an emphases on the function that occur using

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electronic capabilities, e-commerce is a subset of an over all e-business

strategy. E-business involves business processes spanning the entire value

chain. Electronic purchasing and supply chain management, processing orders

electronically, handling customer service, and co-operating with business

partners. Special technical standard for e-business facilitate the exchange of

data between companies E-business software solution allow the integration of

infra and inter firm business processes.

E-business can be conducted using the web, the internet, intranets,

extranets or some combinations of these. Basically electronic commerce (EC)

is the process of buying transferring or exchanging products, services and / or

information via computer networks including the internet Electronic commerce

can be benefited from many perspective including business process, service

learning collaborative, community. Electronic commerce is often confused with

e-business. “E-business may be defined as The transformation of an

organization’s processes to deliver additional customers value through the

application of technology. Philosophies and computing of the new economy”

Three primary processes are enhanced in E-business.

a) Production Process

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Which include procurements ordering and replenishment of stock,

processing of payments, and electronic links with suppliers and productions

control processes among others.

b) Customer Forced Processes

Which include promotional and marketing efforts, selling over the

internet, payment and customer purchase orders and payment and customer

support, among others.

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c) Internal Management Processes

Which include employee services training internal information, sharing

video conferencing and recruiting. Electronic applications enhance information

flow between production and sales forces to improve sales force productivity.

Work group communications and electronic publishing of internet business

information are like wise made more efficient.

2.2 Classification of E-business

2.2.1 Business to Business [B 2 B]

B 2 B is simply defined as e-commerce between companies. This is the

type of e-commerce that deals with relationship between among business.

About 80% of e-commerce is this type and most experts predict that B 2 B e-

commerce will continue to grow faster than the B 2 C segment. The B 2 B

market has two primary components.

Business Organization Business Organization

Fig. No. 2.1

B2 B

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2) Business to Consumer [B 2 C]

Commerce between companies and consumer, involves customers

gathering information, purchasing physical goods or information goods and for

information goods receiving products over an electronic network. It is the

second largest and the earliest form of e-commerce. Its origins can be traced to

online retailing.

Website

Business Organization
Customers

Fig. No. 2.2

B2 C

2.2.3 Business to Government [B 2 G]

It is generally defined as commerce between companies and the public

sector. It refers to the use of the internet for public procurement, licensing

procedure and other government related operations. This kind of e-commerce

has two features; First the public sector assumes a pilot role in establishing e-

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commerce and second, it is assumed that the public sector has the greatest need

for making its procurement system more effective.

Business Organization Web Government

Fig. No. 2.3

B2 G

2.2.4 Consumer to Consumer [C 2 C]

Consumer to consumer e-commerce or C 2 C is simply commerce

between private individual or consumer. This type of e-commerce is

characterized by the growth of electronic market places and online auctions

particularly in vertical industries where firm can bid for what they want from

among multiple supplier.

Website

Want to sell Receipt Product Want to buy

Customer Customer

Receive Money
Fig. No. 2.4
C2 C

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2.2.5 Consumer to Business [C 2 B]

Consumer to business transaction involved reverse action, which

empower the consumer to drive transaction. In C 2 B transaction customers are

given more influence over what and how products are delivered there by

bordering consumer choice.

2.3 Application of E-Business

Application of e business is classifieds into three categories.

Internal business system

 Customer relationship managements

 Enterprise resource planning

 Document management system

 Human resource management

Enterprise Communication and collaboration

 Volp

 Content management system

 e-mail

 voice mail

 web-conferencing

 Digital work flows

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Electronic Commerce - B 2 B or B 2 C

 Internet Shop

 Supply chain Management

 Online marketing

 Offline Marketing

2.4 E-Business models

Organizations go online, they have to design which e-business models

suit their business goals. Business model is defended as the organization of

product service and information flows, and the sources of revenues and benefits

for suppliers and customers. The concept of E-business Model is the same but

used in the on-line presence. Currently, the most adopted e-business models is

a list as follows:

 E-shops

 E-procurement

 E-mails

 E-auctions

 E-Virtual communities

 Value-chain Integrators

 Value-chain Service Providers

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 Information Brokerage

2.5 Evolution of E-business

Traditional transaction processing systems were simple interactive or

message processing programs which took too much time and manpower for its

working. These difficulties paved way to the introduction for faster transaction

processing units. Later sophisticated distribution processing systems were

developed that was repeatable, robust, and responsive. The system designs

make several assumptions about the run-time environment-synchronous

connection between end points of conversation or pseudo conversations, user

authentication, management of the presentation space, and for the databases,

the balance between update and read-only messages.

The concept of E-commerce and e-business came in the middle of 90’s.

Many assumptions were hold in the e-business environment which was not in

the earlier transaction processing systems. As a result, the transaction flows are

run-time environments for browser-based transactions, either business to

consumer (B2C) or business to business (B2B) transactions. One of the first to

use the term was IBM, when, in October 1997, it launched a thematic campaign

built around the term. The term “E-Business” was coined by Lou Gerstner,

CEO of IBM.

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The primary focus of e-business was on the so-called Web transaction,

where a browser replaces the transaction terminal and the message processing

system is replaced by the HTTP daemon, because this is the predominant

configuration. Several (faceless) systems that are in production today are

described at the flow levels and their performance and scalability are analyzed.

Commerce involves complex activities. Business will look for suppliers;

contact partners from different locations to discuss details, spend on

promotions (Brochures, TV ads, etc) have a stall at the market, sell products,

and after sometimes earn a profit.

Customers will see advertisements in newspapers, or TV, or has them on

radio, go to the market, wait in long lines and carry some cash or credit cards to

buy things. That was however, all before e-business was evolved. Now a day,

business need not spend more to promote a product nor travel far to

communicate with business partners. They do not even need to show up at the

market to present and sell their product. Customers need not travel far, window

shop, wait in long lines, or even bring hard currency this entire process.

E-commerce software describes the tools to design and manage all facts

of an online business, providing the customer with a simple and rewarding

shopping experience. E-commerce includes all business activities and

processes occurring over the Internet. It enables network – based alliances and

partnerships to swiftly share business information. It also provides a convenient

means by which to purchase goods and services offered by a company. The e-

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commerce community is an electronic market place (e-market), where all

stages of the production and consumption cycle take place electronically.

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2.6 Development of E-Business

In the twenty-first century, e-business referred more specifically to

transactions between business (B2B e-commerce) and between businesses and

consumers (B2C e-commerce) through the use of computer communication,

particularly the Internet. This form of electronic commerce began in 1968,

when what was called Electronic Data Interchange permitted companies to

carry out electronic transactions. However, it was not until 1984 that a

standardized format provided a dependable means to conduct electronic

business, and it was not until 1994 that Netscape introduced a browser program

whose graphical presentation significantly eased the use of computer

communication for all kinds of computer activity, including e-commerce.

To take advantage of the widespread adoption of the personal computer

and the graphical browser, Jeff Bezos in 1995 found Amazon com to sell books

and eventually a full range of consumer items over the internet. Amazon went

public in 1997. Other booksellers quickly, notably Barnes and Noble, whose

web subsidiary – begun in 1997 – also experienced repaid revenue growth and

steep losses. One of the most successful e-commerce, e-pay, departed from

traditional retail outlets by serving as an electronic auction site or meeting

place for buyers and sellers, thereby avoiding expensive warehousing and

shipping costs. It earnings derive from membership and transaction charges hat

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its participants pay to join the auction. The company’s profit of $58.6 million

in 2000 made it one of the few to show a positive balance sheet.

The business – to – business form of e-business fared better in 2000 and

2001, although a faltering economy lowered expectations. B2B e-business

evolved with the development of the Internet. One of the leading B2B firms, IT

Technologies, was found in 1988 as a business software producer to help

companies manage inventories electronically.

As the Internet expanded, the role of IT grew to include the procurement

and management of all the elements required to produce finished goods.

Another form of B2B e-commerce involves managing a market for firms in

specific industries. Vertical Net, founded in 1995, links producer goods and

services markets, earning money on commissions it receives for deals struck

using its electronic market place.

By 2001, electronic commerce or e-business had not grown to levels in

the late 1990’s. In addition to a decline growth, there remained uncertainties,

particularly in relation to the consumer sector. Buyers were slower than

expected to change habits and make the shift from going to a store to shopping

on a computer. Concerns about privacy and security remained, although some

progress was made in setting privacy protection because selling information

about customer was a valuable part of the e-commerce business. Nevertheless,

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business-to-business sales continued to grow and companies that developed

their electronic sales divisions slowly over this period and carefully integrated

their e-business and conventional business appeared to be more successful.

Business conducted over the Internet, most often via the World Wide

Web E-business can apply to purchase made through the Web or to business-to

business activities such as inventory transfer. Customer can order items from a

vendor’s Web site, paying with a credit car (the customer enters account

information via the computer) or with a previously established “cyber cash”

account. The transaction information is transmitted (usually by modem) to a

financial institution for payment clearance and to the vendor for order

fulfillment. Personal and account information is kept confidential through the

use of “secured transactions” that use encryption technology.

Information technology industry might electronic might see electronic as

an application aimed at commercial transactions; in this context, it can involve

electronic funds transfer, supply chain management, e-marketing, online

marketing, online transaction processing, electronic data interchange (EDI),

automated inventory management system and automated data collection

system. Electronic commerce typically uses electronic communications

technology of the World Wide Web, such as databases, and e-mail, and on

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other non computer technologies, such as transportation for physical goods via

e-commerce.

2.7 SUCCESS FACTORS OF E-BUSINESS

Technical and organizational aspects.

In many cases, an e-business/e-commerce company will survive not only

based on its product, but having a competent management team, good post-

sales services, well organized business structure, network infrastructure and a

secured, well-designed website. Such factors include:

 Sufficient work done in market research and analysis. E-business is not

exempt from good business planning and the fundamental laws of

supply and demand. Business failure is as much a reality in e-commerce

as in any other form of business.

 A good management team armed with information technology strategy.

A company’s IT strategy should be a part of the business re-design

process.

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 Providing an easy and secured way for customers to effect transactions.

Credit cards are the most popular means of sending payments on the

internet, accounting for 90% of online purchases. In the past, car

numbers were transferred securely between the customer and merchant

through independent payment gateways. Such independent payment

gateways are still used by most small and home business. Most

merchants today process credit card transactions on site through

arrangements made with commercial banks or credit cards companies.

 Providing reliability and security. Parallel servers, hardware

redundancy, failsafe technology, information encryption, and firewalls

can enhance this requirement.

 Providing a 360 degree view of the customer relationship, defined as

ensuring that all employees, suppliers and partners have a complete

view, and the same view of the customer. However, customers may not

appreciate the big brother experience.

 Constructing a commercially sound business model.

 Engineering an electronic value chain in which one focuses on a

“limited” number of core competencies – the opposite of a one-stop

shop. (Electronic stores can appear either specialist or generalist if

properly programmed).

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 Setting up an organization of sufficient alertness and agility to respond

quickly to any changes in the economic, social and physical

environment.

 Streamlining business processes, possibly through re-engineering and

information technologies.

 Providing complete understanding of the products or services offered,

which not only includes complete product information, but also sound

advisors and selectors.

Naturally, the e-business vendor must also perform such mundane tasks

as being truthful about its products and its availability, shipping reliably, and

handling complaints promptly and effectively.

2.8 PROBLEMS

Even if a provider of electronic goods and services rigorously follows

these “Key factors” to devise an exemplary e-business strategy, problems can

arise. Sources of such problem include:

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 Failure to understand customers, why they buy. Even a product with a

sound value proposition can fail if producers and retailers do not

understand customer habits, expectations, and motivation.

 Failure to consider the competitive situation. One may have the will to

construct a viable book e-tailing business model, but lack the capability

to compete with Amazon.com

 Inability to predict environmental reaction. What will competitors do?

Will they introduce competitive brands or competitive web sites? Will

price wars break out? What will the government do? Research in to

competitors, industries and markets may mitigate some consequences

here, just as in non-electronic commerce.

 Over-estimation resource competence. Can staff, hardware, software,

and processes handle the proposed strategy? Have e-tailors failed to

develop employee and management skill? These issues may call for

thorough resource planning and employee training.

 Failure to coordinate. If existing reporting and control relationship do

not suffice, one can move towards a flat, accountable, and flexible

organizational structure, this may or may not aid coordination.

2.9 STATUS OF E-BUSINESS

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E-business will be able to change the way business functions and the

strategies that the business would be able to adopt in order to face competition.

Earlier only large business firms could afford the investment expense that was

necessary to reach out to a large number of consumers. Now even the smallest

organization would be able to access a large number of consumers were the

marginal cost of servicing an additional consumer is only negligible. The trend

towards the introduction and utilization of E-business would continue at an

accelerated pace as the technology provides increasing facilities that are also in

expensive.

Once E-business becomes the norm for conducting the business, it will

cease to become an option and will become a necessity to counteract the

competition. It would also help in streamlining the business processes by

cutting down the administrative procedures and the errors that would creep in

as a result of these repeated procedures. Consequently there will be a

substantial reduction in overhead. Improve and speedier interaction between

the buyers and the suppliers reduced inventory costs and increased the sales.

2.10 Advantages of E-business

1. World wide presence

This is the biggest advantages of conducting business online. A firm

engaging in e-business can have a retail wide or a world wide presence. IBM

was one of the first companies to use the term e-business to refer to service

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customer, and collaborating with business partners from all over the world.

Dell Inc had a flourishing business selling PCs throughout the customers. Only

via telephone and the internet till the year 2007.

2. Better customer service

E-business has resulted in improved customer service. Many a terms on

visiting a website the customer is granted by a popup that window. Reality

available customer service may help is encouraging the customer to know more

about the product or service. Moreover payments can be made online, products

can be shipped to the customer without the customer having to leave the house

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3. Cost effective marketing and Promotion.

Using the web to market products guarantees world wide reach at a

normal price. Advertising techniques like pay per click advertising ensures that

the advertiser only pays for the advertisement that are actually viewed. Affiliate

marketing, where customers are directed to a business portal because of the

efforts of the affiliate who intern receive a compensation for their efforts

meeting with success has emerged on account of e-business. Affiliate

marketing has helped both the business and the affiliates firms engaging in e-

business have managed to use cost effective online advertising strategies to

their advantages.

4. Developing a competitive strategy

Firms need to have a competitive strategy in order to ensures

competitive advantages. Without an effective strategy, they will find it

impossible to maintain the advantages and earn profits. The strategy that the

firms can peruse, cab be a cost strategy or a differentiation strategy.

5. With the use of e-business we can promote our

product globally. It reduces time and money spent. It

gives a completive advantages. It removes location

and availability restrictions.

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Other advantages of e-business are work from, raves money of renting

offices or shop place. If trading on-lone want have to employee or many staff

and this will also save the business money. Able to buy from it 24 hrs a day.

Larger market of potential customer on time delivery people or people with

disabilities who are not able go to the shops can still be customers of ours.

2.11 Disadvantages of e-business

1. Security

There are still some people who don’t think it is same to buy on-line

therefore as their isn’t high street shop will loss their customer.

 You may not receive what you believe you have purchased

 Things such as virus CP could mean losing the rite or

affecting your customers computers wile on your website.

2. Costly E-business solution foe optimization.

Substantial recourses are required for redefining product lines in order to

sell online. Upgrading computer systems trading personnel, and updating

websites requires substantial resources. Move rover, electronic data

management (EDM) and Enterprise Resources Planning (ERP) necessary for

ensuring optional internal business process may be looked upon by some firms

as one of the disadvantages of e-business.

3. Sectorial Limitations

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The main disadvantages of e-business is the lack of growth in some

sectors on account of product or sector limitations.

3.1 INTRODUCTION

Kerala co-operative Milk Marketing Federation popularly known as

‘Milma’ was established in April 1980. Dairy Co-Operatives accounts for the

major share of processed liquid marketed in the country. In Kerala with head

office at Thiruvananthapuram it was started under the Indo-Swiss project. The

project was launched in 1963 on the basis of a bilateral agreement executed

between the Swiss confederation and the Government of India. The project was

made great strides in the improvement of livestock farming in the state. One of

them is the development of swiss brown a cross bread suited form the state

condition. The project is now managed by the Kerala Livestock Board. Its main

motive was to implement the operation flood programme started by the

National Dairy Development Board in Kerala.

The KCMMF is a three tier structure with the primary milk co-operative

society at the village level, regional milk producers union at the middle level

and an apex body at the state level, which is KCMMF Ltd. At present there are

three regional co-operative milk producers union operating. They are

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 Trivandrum Region Co-operative Milk Producers Union Ltd.

(TRCMPU)

 Ernakulam Region Co-Operative Milk Producers Union Ltd.(ERCMPU)

 Malabar Region Co-Operative Milk Producers Union Ltd.(MRCMPU)

3.2 E-Billing

The software used by the industry is Enterprise resource planning

(ERP), is a system that is used to manage and co-ordinate all the resources,

information and functions of a business. ERP System selection methodology is

a particular procedure or set of practices used in the un-biased selection of an

enterprise recourse planning system for a company.

ERP is an integrated computer based system used to manage internal

and external resource including tangible assets, financial resources, materials

and human resources. It is a software architecture whose purpose is to facilitate

the flow of information between all business functions inside the boundaries of

the organization and manage the connections to outside stakeholders. Built on a

centralized database and normally utilizing a common computing platform,

ERP system consolidates all business operations in to a uniform and enterprise

wide system environment.

An ERP System can either reside on a centralized server or distributed

across modular hardware and software units that provide “services” and

communicate on a local area net work. The distributed design allows business

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to assemble modules from different venders without the need for the placement

of multiple copies of complex and expensive computer system in areas which

will not use their full capacity

The initialize ERP was just employed by research and analysis later

manufacturing resource planning and CIM (Computer Integrated

Manufacturing) and while not supplanting their terms. It has come to represent

a larger, whole. It came in to use as makers of MRP software started to develop

software applications beyond the manufacturing arena. ERP system now

attempt to cover all core functions of an enterprise regardless of the

organizations business charter. These system can now be found in non

manufacturing business non profit organization and Government.

ERP systems typically handle the manufacturing logistics, distribution,

inventory, invoicing and accounting for a company. ERP software can aid in

the control of many business activities, including sales marketing delivery,

billing, production, quality management inventory management and human

resource management. ERP system are cross functional and enterprise wide.

All functional department that are involved in operations or production are

integrated in one systems.

To be considered an ERP system a software package should have the following

traits.

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 Should be integrated and operate in real time and with no

periodic batch updates.

 All applications should access one database to prevent

redundant data and multiple date definition.

 All modules should have the same look.

 Users should be able to access any information in the

system without needing integration work on the part of IS

department.

3.3 Components of ERP in the Industry

3.3.1. Transactional backbone

 Financials

 Human resource

 Product Life Cycle

 Management

 Distribution

3.3. 2. Advanced Application

 Customer Relationship Management (CRM)

 Supply Chain Management

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 Purchasing

 Manufacturing

 Distribution

 Warehouse Management System

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3.3.3 Commercial Applications of ERP

These are:-

1. Manufacturing

 Engineering

 Scheduling

 Quality Control

 Manufacturing Project

 Cost Management

 Work flow Management etc.

 Work Orders

 Bill of Material

2. Supply Chain Management

 Order to Cash

 Inventory

 Order Entry

 Purchasing Product Configuration

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 Commission Calculation

 Claim Processing

 Supplier Scheduling

3. Financials

 General Ledger

 Cash Management

 Accounts Payable

 Accounts receivable

 Fixed Assets

4. .Human Resource

 Payroll

 Training

 Time and attendance

 Restoring benefits

5. Customer Relationship Management (CRM)

 Rates and marketing

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 Commission

 Customer contact

In the absence of an ERP system, a large manufacture may find itself

with many software applications in the environment communicate or interface

effectively with one another. Tasks that need to interface with one another may

involve. ERP system connected the necessary software in order for accurate

forecasting to be done. This allows inventory levels to be kept at maximum

efficiency and the company to be more profitable.

3.4 Benefits of ERP

 Design Engineering

 Eliminate the problem of synchronizing changes between

multiple system consolidation of finance, marketing and sales,

human resource and manufacturing applications.

 Permit Control of Business process that cross functional

boundary.

 Facilitator business learning, empowering and building common

vision.

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4.1 COMPANY PROFILE

Thiruvananthapuram Regional Co-operative Milk Process Union

Ltd(PRCMPU) was registered in 1985 as a Regional milk union with a

southern district of Kerala. viz. Trivandrum, Kollam, Alappuzha and

Pathanamthitta as its area of operation. TRCMPU was formed by dividing the

area of operation of Kerala Milk Marketing Federation, formed for

implementing of 11 project in 1980, in to two viz. ERCMPU with 4 northern

districts under of 11 area and TRCMPU.

TRCMPU has completed 25 years of its operation successfully. It has

successfully faced odds like excessive procurement in the initial stages and

consequent loss of stagnation of sales in early 1990’s and of late shortage of

milk and related problems and consequent loss. With such diverse experience

in the past and talent pool and it has, it can face any adverse environmental

problems successfully.

TRCMPU also aims of empowerment of women produces members by

various training programme under empowerment of women in Co-operatives

(EMIC) for their active involvement in Co-operative institution building. It also

aims at increasing women participation in Dairy Co-operatives by organizing

education programme for women in villages. Organizing income generation

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activities, savings programmes like thrift for woman members, identify women

resources.

The TRCMPU has established itself as a financially sound organization.

It has been operating profitably. TRCMPU is having an elected director board

since inception except for one year.

Milma is the trade mark of the Kerala Co-operative Milk Marketing

Federation Ltd. which is the apex co-operative of three regional union viz.

Trivandrum, Ernakulam and Malabar. Milma’s role essentialy is to procure the

marketable surplus of milk poduced annually and market it to fetch maximum

return for its milk producer members. This is the role of milma in Dairy sector.

VISION

“To achieve the status of the best union in the country in turnover and

profitability by achieving 10-15% growth per annum by accelerating the

growth in milk production and sale of milk products and by diversification into

related areas in food sector”.

MISSION

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“To become the leading organization in the food and nutrition Sector in

the region, through the attainment of its marketing objectives and to become

Nucleus of an endeavor for an accelerated development of the rural economy of

the region. Further it would aspire to function as professional, profitable and

socially responsible organization ensuring better returns to farmers, primary

societies as well as its customers by providing good value for their money.”

4.1.1 OBJECTIVES

1. To carry out activities for promoting

production, procurement, processing and marketing of milk and milk
products for economic development of the farming community.

2. To build up a viable dairy industry in the state.

3. To provide constant market and stable trice to

the dairy form and their product.

4. To directly link the producers with consumers.

5. To build up a high degree of consumer

confidence by providing increase the value for his money through
International standards of product quality, performance and superior
customer service.

6. To channelise marketable surplus milk from

the rural areas to urban deficit area. To maximize and provide quality
milk and product to the consumer.

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All business data are transferred through the software ERP (Enterprise

Resource Planning). This software is used in all areas or all sections of this

organization. Such areas are:-

 Human Recourse Development.

 Marketing.

 Project and Maintenance.

 Procurement and input.

 Finance Department.

4.2 . Project and Maintenance

 Project Monitoring

 Time and expense Calculation

 Billing

 Efficiency improvement Studies

 Management Information

4.3 Marketing

The key functions are:-

 Sales and Marketing

 Customer Relation Management

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 Customer Contact

 Distribution

4.3.1 Working of ERP in Marketing Section

Fig: No. 4.1

ERP in Marketing Section

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The first step is to collect or receive the indent quantity of products from

the agent that they need then the required production is done. The major

products are milk chocolate, curd; peda etc for marketing the organization

provides corporate advertisement. The product distribution channel is start

from manufactures to whole sales then to end customers. After the production

the products are marketed to agents through various distribution media. The

payment of bill by agents either by cash counter or through the banks. The

agent can use the website of TRCMPU that is milatrcmpu.com.

4.4 Procurement and input

This department is mainly concerned with procurement of milk and

input for milk production enhancement .The milk collection or procurement is

starts from societies. Where all societies are interconnected with using

computer network. Data from Bulk Milk cooling centers (BMCCs) transferred

electronically to Dairies and Head offices. All milk procurement of data are

computed using ERP and milk billing is done. The payment of money is in the

form of cheque, and these cheque can be printed out through this software. All

societies are using visual basic with MS access and Fox pro applications used

for invoicing trick sheet, daily, weekly and monthly reports are transferred

through this software.

The functions include.

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 Store item maintenance.

 Material receipt.

 Stores accounting.

 Inspection of goods.

 Intending purchase order.

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4.5 Finance Department.

The key functional areas using ERP are:-

 Milk billing.

 Cash Management.

 Working capital management.

 Accounts.

 Financial management

4.6 Role of ERP in Milk Billing

ERP system are cross functional and enterprise wide. All functional

department that are involved in operation or production are integrated in one

system. In addition to areas such as manufacturing, warehousing, logistics and

information technology. This typically, includes milk billing. The milk billing

is starts from the milk procurement from the societies. Where all societies are

interconnected with using computer network. Data from Bulk Milk Cooling

Centres (BMCCs) transferred electronically to Dairies and Head office.

All milk procurement of data are computed using ERP and milk billing

is done. The payment of money is in the form of cheque and these cheque can

be printed out through this software. These societies are using visual basic

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with MS access and Fox pro applications used for making this payment. The

site used for milk billing is milmatrcmpu.com.

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4.7 E-BUSSINESS MODEL IN THE ORGANIZATION

the E-bussines model in the organization using ERP is B2C. business to

consumer describes activities of business serving end consumers with products

or services. The transaction that leads to milk being available for purchase

WEBSITE

AGENT
MILMA

Fig: No. 4.2

B2C in organisation

4.8 Software Advantages

 Integration among different functional areas to ensures proper

Communication, productivity and efficiency.

 Order tracking from acceptance through fulfillment.

 Managing inter dependencies of complex process like milk

billing.

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 Tracking the three way match between purchase orders(what was

ordered) inventory receipts (what arrived) and costing (what the

vender invoiced).

 Provide top-down view of the enterprise, real time information is

available to management any where, any time to make proper

decisions.

 Reduce the risk of loss of sensitive data by consolidating

multiple permission and security models in to a single structure.

 Shorten production lead time and delivery time.

 Resource sharing and data sharing resolve problem due to

duplications of data entry of different locations

 Electronic data transfer and hence E-Business is facilitated in

ERP system

Limitations:-

 Operating Problem

 It needs large back up storage devices for storing data for long period.

Unless otherwise up dated and modified. Otherwise the system will

suffer especially when communicate with outside agents.

 Software used is very expensive

 It is not flexible

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FINDINGS

 Customers are completely satisfied with their services.

 Available information sharing system is not user friendly

 The employee of the organization are not aware about the advantages of

ERP.

 Timely updating of the system is not properly followed by the

Company.

 Well Structured information system.

 Transmission of data are done in a short span of time.

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SUGGESTIONS

 In the coming years there will be a great demand for online and offline

saleof milk and other products.

 Services should be made available at rural areas also

 More investment should be given for updating existing system .The

current system has to be standardized to the world class level.

 An awareness campaign should be conducted within the organization

itself.

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CONCLUSION

The study entitled “E-business project in the organization at

Thiruvanthapuram Regional Co-operative Milk Producers Union was really

useful in understanding E-business theory models classifications and E-

business applications, and also study about the software used in that

organization-business offers many advantages over traditional business. They

help business to overcome the physical constraints like space. They can offer

widest way of product to customers business offers fast and accurate

transaction of their customers. E-business helps the company to achieve better,

faster and cost competitive business process, simplification and

standardizations of firm’s procedures. The competitive advantages of the

company is depending upon the speed of the company that it can require the

new technology and implement it into its day to day operations.

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BIBLIOGRAPHY

BOOKS

1. P.T.Joseph, (2005) S.J. “E-commerce An Indian Perspective”

Second edition, Prentice-Hall of India (p) Ltd. Delhi.

2. Dr. Varinder Bhatia, (2000), E-commerce (Including e-business)

Khanna Book Publishing Co. (p) Ltd. Delhi.

Website: www.milmatrcmpu.com

www.wikipedia.com
www.google.com

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ABBREVIATIONS

BMCC : Bulk Milk Cooling Centers

CIM : Computer Integrated Management

CRM : Customer Relation Management

EDM : Electronic Data Management

ERP : Enterprises Resource Planning

ICT : Information and Communication Technology

KCMMF : Kerala Co-operative Milk Marketing Federation

MRP : Material Requirement Planning

NDDB : National Dairy Development Board

TRCMPU : Thiruvananthapuram Regional Co-operative Milk

Producers Union.

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