TO STUDY THE SUPPLY CHAIN OF OMFED AND DEFINE THE

METRICS

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GROUP-5
PRATICK
CHOUDHURY
UEMF15022
PREETI RANJAN JENA
UEMF15023
SAMRAT MAZUMDAR
UEMF15025
SOHAM PRADHAN
UEMF15027

ACKNOWLEDGEMENT
First of all we would like to extend our heartfelt gratitude to
Prof W. S. William for giving us this opportunity to work on
this supply chain project. Without his teaching and guidance
especially regarding the fundamentals of supply chain and its
various applications, this project would not have materialized.
In fact, his guidance in the entire Supply Chain Management
approach was very enlightening, and it would go a long way in
shaping our careers.
We would also like to thank all the staff members especially the
TO Quality Chief of OMFED -Mr. P.P. Mishra and the Deputy
Marketing Manager

of OMFED Mr. N.R. Khadanga without

whose insights and help this project would not have been a
success. It gave us an opportunity to participate and learn
about the various areas of Supply Chain Management and their
application to infer real-time issues.

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Table of Contents
1. Introduction...........................................................................................4
1.2 Mission & Vision of Omfed:.................................................................4
2. Objective of the study:..........................................................................5
3. Product Profile:......................................................................................5
4. Why Omfed?............................................................................................8
4.1 Future prospects and plans of Omfed................................................8
5. Milk Marketing in India...........................................................................9
6. Procurement process of OMFED..........................................................11
7. Transportation.....................................................................................12
8. Product Distribution Of OMFED............................................................13
9. METRICS FOR MEASURING OMFED SUPPLY CHAIN...............................14
9.1 INTERNAL BUSINESS PROCESSES.....................................................14
9.2 CUSTOMER PERSPECTIVE.................................................................15
9.3 FINANCIAL PERSPECTIVE..................................................................16
9.4 LEARNING AND GROWTH PERSPECTIVE...........................................17
10.

Challenges........................................................................................18

11.

SUGGESTIONS AND RECOMMENDATIONS.........................................18

11.1 Providing Service of Liquid Milk Vending Van................................19

1.2 Home Delivery for Customers..........................................................19
11.3 Establishment Liquid Milk Vending Machines.................................20
11.4 Flexible credit policies for Retailers...............................................21
What Milk Mantra is doing in its SCM?..................................................21
12.

CONCLUSION....................................................................................22

13.

REFERENCES.....................................................................................23

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1. Introduction
Orissa State Co-operative Milk Producers Federation Limited (OMFED)
operates in Odisha, which is an eastern state of India. OMFED deals with
milk and milk products and from years it has been engaged in providing
livelihood to rural farmers and milk producers and safe and hygienic milk
to the urban households of Odisha. Apart from this, it is known to bring a
customary practice to grace the Indian ceremonies and functions with
ghee, butter, and sweets.
The Orissa State Cooperative Milk Producers' Federation Limited
(OMFED) is an apex level Dairy Cooperative Society registered under
Cooperative Society Act 1962. It is the leading organized milk producer
of
Odisha and has come into existence to integrate the milk producers in
rural areas with consumers in the urban areas with an enterprising
aptitude. It got registered in 1980 and started working since 1981. It took
over OMPAC in 1988.
Its main activities includes promoting, production, procurement,
processing and marketing of milk & milk products for economic
development of the rural farming community in Orissa.

1.2 Mission & Vision of Omfed:

To be a leading milk producing organization at international level of
efficiency with wide and satisfied customer base, maximizing wealth of
stakeholders and continuing to the state economy.
Advancement of dairying, encouraging and educating people, through
mutual participation. Continuing endeavor to increase productivity and
per capita consumption. To promote clean milk production and distribution
with state-of-art technology. Customer satisfaction with reliable,
uninterrupted service and quality products. To foster a performance
oriented culture encouraging innovation. To promote a congenial work
climate encouraging employees to participate and contribute for
organizational growth. Continuous up gradation of skills and competence
of employees and their career advancement. To enrich quality of life of
people and preserve ecological balance.

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2. Objective of the study:

-

To understand and study the distribution channel of Omfed.

To suggest a metrics which can be used to understand and measure
the supply chain reliability of Omfed.
To find issues with all checkpoints of distribution of Omfed and suggest
solution of ways to minimize it.

3. Product Profile:

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4. Why Omfed?
-

Omfed is one of the most oldest apex level milk producer in Odisha registered
under Cooperative Society Act -1962.
It is just not only a milk producer but also has vertically integrated most of
the operations around the same industry.
We get to study the supply chain, manufacturing process, transportation etc of this
industry which will give us a overview of all the process.

4.1 Future prospects and plans of Omfed

-

Establishment of new Omfed factory near Sri Sri university by 2020.

Establishment of packaging station and cold storage at Kolkata (Howrah) to market
surplus milk of Bhubaneswar Diary.
Implementation of Integrated Dairy Development Program in Jeypore, Ganjam,

Anugul
and Keonjhar with a total cost of Rs.7.83 crores.
Installation of 30 bulk coolers for preservation of milk and 10 milk tankers for

transportation
of milk shall be put into use with the help of Panchayat Raj Dept
Expansion of ice cream plant at Bhubaneswar diary.
Introduction of calf raising scheme to generate 5000 crossbreed milky animals per
year through selective milk producers societies in operation flood districts.
Establishment of 20,000 LPD Dairy plant at Berhampur under Integrated Dairy

Development
Program (IDDP).
Expansion of Bhubaneswar diary from 1.25 lakhs LPD to 2 lakhs LPD
Self employment program:

o Establishment of highway parlors through private agents.

Installation of exclusive parlors and milk booths in urban areas during the year,
which will employ nearly more and more urban youths in the state Odisha.
o Appointment of private distributors for Bhubaneswar region.
o

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5. Milk Marketing in India

Dairy farming is a source of supplementary income for millions of
small/marginal farmers and landless laborers in India. Market oriented
smallholder dairying provides significant scope for diversification and thus
helps in enhancing income and generating employment for the farmers.
How profitable a dairy enterprise is depends upon cost structure and the
price. Milk is procured, processed and sold by various agents involved in
the dairy business from the point of production to consumption either as
fresh liquid milk or processed milk products. These agents engaged in milk
marketing

have

been

classified

into

Organized

or

Formal

and

Unorganized or Informal although a clear definition of organized and

unorganized does not exist.
In this paper, an informal pathway is defined as where some or all
the actors involved in the whole milk supply chain operate outside the
sector that is regulated and where in practice, taxes and subsidies are
applicable. Broadly, the dairy cooperatives, milk producing units run by
Government and large private dairies such as Nestle, SmithKline, and
Heritage are classified as Formal sector where as village vendors, local
halwais, tea shops, curd shops, small-scale private dairies and contractors
are classified as Informal segment. Despite the steady increase in the
share of organized market over the last four decades, a very large
proportion of marketed milk in the country is still accounted for in the
informal sector.
The key factor that sustains informal market in India is the poor
willingness of the customers to pay the extra costs for formal processing
and packaging. Usually these costs are not incurred by the informal sector
agents and hence the market margins between farmer and consumer
would logically be smaller. This means that the informal market can offer
higher prices to farmers and lower retail prices to consumers. Small-scale
processors (halwais, etc.) also prefer to buy from the informal channel.
These buyers do all the processing of value added products (sweets, curd,
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etc.) and are usually not willing to pay for primary processing. On the
other hand the formal processors incur expenditures not only on quality
control and packaging but also on trade taxes. This makes them capable
of catering to the urban segment only. The share in total marketable
surplus of different agencies, from various parts of the country is
presented below.

Producer

Private
Dairies

Village
Vendor

Hotel/
Restaurants

Local Village
Shops

Distributors

Cooperatives

Processors
Marketing Agencies/
Wholesalers

Retail Shops/
Milk Booths

Consumer
Figure 1: Major Milk Marketing Channel in India

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6. Procurement process of OMFED

It follows a three-tier system which was originally pioneered by AMUL
Dairy in Gujarat state of India. The elemental composition/configuration of
the three-tier operational system of OMFED is represented as:
1. The Village Co-operative Society (The actual Milk Producers)
2. The District Milk Unions/MUs (Collect milk from producers and provide
them the required inputs) 3. The Milk Federation (Engaged in processing
and marketing of milk).

Primary village milk producer

coperative society

District coperative milk producer

union

Odisha state coperative Milk

Federation Ltd

In OMFED, farmers are the principal stakeholders or beneficiaries as they

enjoy the collective ownership and are ensured to get a fair price and
return. So, OMFED thwarts the traditional distribution system, wherein
middlemen used to dictate the terms to actual producers by offering lower
prices to them. Milk is procured from various village co-operative societies
throughout these districts twice daily from which it is sent to the chilling
centres at the nearest District Milk Union in hired trucks. From the MUs it
is sent to nearest Milk Federation dairy for processing and marketing.
Village Co-operative Society
It represents the first tier in the whole system. It is a voluntary
association of milk producers in a village who are willing to sell milk
on a collective basis.
Any milk producer can become a member by paying a nominal fee
of Rs.1 and buying a share of Rs.10. The milk producer is expected
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11

to sell only the surplus milk to the society after meeting his personal
needs.
The members select a Committee and a Chairman too to better
manage and handle things. The Committee then selects some more
people to act as aides (milk tester, secretary etc). Milk producers
bring milk to the society every morning and evening. A sample of
milk from each producer is taken and tested by a Lactometer for
quality. The society sells milk only to the nearest District Milk Union.

District Milk Union (DMU)

The Milk Union then carries the collected milk from the society by
using hired transport vehicles to their processing centres. Milk is
chilled to 5 degree C in the chilling centers. The collector of the
district is the Chairman of the DMU. It is also the job of the Milk
Unions to provide technical inputs training and sometimes even to
provide cattle feed to the village societies.
The MU gives various technical inputs to the producers to enhance
their milk productivity. This is done in the hope that excess
productivity will result in excess of surplus milk with the producers
which he can then sell to the village society.

Puri Mu.

Keonjhar Mu.

Dhenkanal Mu.

Boudh
Mu.

Sambalpur Mu.

Koraput,

Bhadrak, Balasore,
Mayurbhanja Mu.

Nvngpur
Rayagada Mu.

Ganjam&
Sundargarh Mu. Balangir,
Gajapati Mu

Kandhamal Mu.

Kalahandi&Nuapad
a Mu.

Figure 3: OMFED Distribution Channel

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7. Transportation
OMFED does not have its own transportation system. This is
because it thinks that it would be a huge investment and result in
higher cost. Thus every year it invites tenders from transporters
across the state to carry out transportation of its products.
It usually employs multiple transporters sometimes different
transporters are used on different routes. The logic behind this is to
curb the monopoly of the transporters and to avail their services at
affordable prices and to improve and maintain quality and service
through healthy competition between transporters.
As far as distributors are concerned, as mentioned above they have
to take care of their own transportation to the retailer.

8. Product Distribution Of OMFED

OMFED follows two channels of distribution.
1. Direct distribution to OMFED booths
2. To retailers via
distributors
The milk dispatch to the OMFED booths takes
place thrice during the day. The delivery
starts early morning at 2.30 to 3.30 am to
various booths. The replenishment happens
OMFED
through mobile vans at 10.30 am again
followed by evening delivery at 2.30 3.30
PM.
Retailers via distributors:
The distributor in this case has to bear the
BOOTH
cost of transportation for distributing the
products to the retailers. If they wish, they
can also supply to exclusive OMFED booths,
but the cost of transportation has to be taken
by them. The margin enjoyed by the
CUSTOM
distributors, in OMFEDs case is less than the
ER
retailers. OMFED has a total of 12 distributors
for all its products in Bhubaneswar and 4
distributors for Ghee

OMFED

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DISTRIBUTO
R

RETAILER

CUSTOMER

13

9. METRICS FOR MEASURING OMFED SUPPLY CHAIN

The measurement of supply chain performance requires that metrics must
be consistent with overall corporate strategy, metrics must focus upon
customer needs and expectations and metrics must be context specific.
The underlying philosophy behind these metrics must focus upon
processes,
use a balanced approach in selecting and developing indicators,
capture precise cost measurement and
use technology to capture operational transactions.
Balanced Scorecard approach (BSC) was developed by RS Kaplan and DP
Norton as a tool for aligning business activities to the vision and strategy
of the organization, improving internal and external communications and
monitoring organizations performance against strategic goals. It includes
four performance indicators, namely,
customer perspective,
internal-business processes,
learning and growth and
financials.
Due to its structure BSC provides not only central control mechanism but
also includes mechanism for improvement.
Following is the list of Key performance indicators(KPIs) of Balanced
Scorecard (BSC) for measurement of performance of Omfed supply chain.

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9.1 INTERNAL BUSINESS PROCESSES

Sl Performance
. Parameter
n
o
1 Purchase
Order
Cycle Time

Observations

There is fixed order cycle that is OMFED has to

collect milk every day from all Milk unions.
Within 24hrs milk is deposited at the processing
plant from all diary.

Constraints: As collection of milk is compulsory

from farmer, then OMFED has to bear the loss of
extra production of milk.
This constraints cannot be removed due to
Government provision of perennial market to farmer
for continuous income.
Supplier Rejection Rejection was 4,79,610 kg rejected for the year
Rate
2015 which is very high .
Constraints: Omfed receives milk in a container of
capacity 15000 Lit. Sample from each tanker is
tested. If the sample is not found as per standard
then the entire tank has to be rejected.
Hence Omfed has to strengthen the quality of storing
and transportation at Society and union level.
Frequency
Of The delivery to all the outlet happens twice in a day
delivery
from the 11 processing diaries through a well
allocated route.
Accuracy
forecasting
Technique

of There is no proper forecasting technique used.

Forecasting of demand is done based on individual
observation on past data. Due to this there is
shortage issue observed some times during
December to February.
Backward
The entire milk processing system is vertically
Integration
of integrated though cooperative society based model.
processing units in
milk procurement
and production
Planned
process The processing time of the milk line is 20K litre /hour
cycle time
milk.
Raw milk storage capacity is 120k litre.
a. Milk Tanker get emptied per hour.
Entire time for each process is recorded .But the
frequency of arrival of Tanker is varying through out
the day due to which it has got large storing capacity.
Use of IT and ERP There is no use of IT or ERP system for monitoring
system
the process. The current status of production is
completely manually monitored and reported.

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15

Quality check and

traceability
of
incoming milk and
raw materials

Capacity utilization

1
0

New
Product
development cycle

1
1

Effectiveness
of
Master Production
schedule

This is a major drawback as the system has no way

to track the causes of failure in processing system.
There is 100% inspection of all incoming tanks.Even
inspection unit Like MILKOSCAN is also established at
all unions.
It takes 0.5 Hour to clear a tanker from quality test.
Even the post processed milk is tested before
dispatch.
Refrigeration system of the processed milk is the
bottleneck stage for meeting the daily production of
225kLit capacity of milk.
There is no defined process of introducing new
product into the existing portfolio. It is completely
management driven.
Batch size is low. to avoid rejection.cold storage is
difficult to handle. Insulated van no refrigerated
van.reprocessing for extra stock.defreezing required.

9.2 CUSTOMER PERSPECTIVE

Sl.
No
1
2

4
5

Performance
Obseravtions
Parameter
Distribution lead Within 8 hours the processed milk is delivered to all
time
outlets twice a day
Order Lead time
Every day each outlet deposit money at the OMFED
account for the quantity required for the next day .On
the same day evening OMFED collect receipts from
bank and make the dispatch ready for the next day
early morning. Hence the order lead time is 1 day.
Generally Omfed follows make to stock process.
Customer
perceived
value
of products
Flexibility
of
service system to
meet
particular
customer
requirement

Responsiveness
to urgent delivery

Distribution
network

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There is no mechanism to capture it.But some time

they carry out personal interviews.
Push sale-on telephone basis. For extra emergency
order , each out let demand for extra milk through
telephone to distribution and marketing manager,
Constarints : Forecasting of demand is retail
dependent.
Risk of losing money for emergency order as it is
completey carried on verbal basis
If the stock is sufficient then the urgent orders are
delivered along with regular order with payment
collection by the distributor.
Omfed has well defined network that could deliver
milk within 8 hrs. The delivery is outsorced to 3 rd
16

8
9

10

11

party on tender basis and payment is done

fortnightly.
Ease of contact
Retail outlet can directly collect milk from the plant
without waiting for delivery vans.
Quality of delivery The milk is required to be delivered at 6 deg
goods
Centigrade. But it is not checked at retail point.
Constraints : The shelf life of milk cannot be
predicted
Distribution
Distribution performance is completely at stake of
Performance
transporter as per contract. Accident cost to be born
by transporter.
Constarints : Omfed doesnt suffer from monetary
loss but customer satisfaction get affected.
Effectiveness
of The schedule of dispatch is fixed . One in the early
distribution
morning and another in the afternoon. It adhered
planning schedule every day.

9.3 FINANCIAL PERSPECTIVE

Sl.
Performance
OBSERVATION
No
Parameter
.
1
Supplier
cost There is no initiative at milk union level to to cut
saving activities
down cost. Constraints : Federaaion Pay Rs 28 / litre
to farmer and sell at a price of Rs 34. This Rs. 6
margin include s cost of marketing, processing,
distribution at both union and federation level. Due to
no cost saving measures in become difficult for
OMFED to control cost.
Cattle feed subsidization is the main cost to Omfed.
2
Cost per operation Rs.0.37 for electricity /lit, Rs 0.12 for boiler /lit
hour
prcessing, Rs0.12 for water per litre of processing.
3
Return
on Return on investment is not properly calculated as
Investment
the main motto is to uplift farmers.
4
Net price of the Omfed is the lowest priced product in the market
products
6
Transportation and The cost is fixed based on Low cost tender approval
distribution cost
7
Terms of payment
Payment to the transporter happens fornightly.
Electricity payment happenswithin fist 4 days of bill
generation to attract rebate.
9
Profit
Omfed derive profitof Rs 0.05 to 0.1 / litre sale of
milk.

9.4 LEARNING AND GROWTH PERSPECTIVE

Sl.

Performance

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Observation
17

No
1

3
4

6
7
8

Parameter
Supplier
All the milk unions follow the strict norms of milk
assistance
in quality test and storage. The entire network from
solving problems
milk collection from farmer to federation is well
structured with proper coordination.
Order
entry Order booking takes place through bank deposit
method
before delivery. This ensures no discrepancy in
order versus payment delays.
Supplier ability to All the milk union understand the cost of milk
respond to quality rejection as the cost to be born by individual union
issues
and not federations Hence they follow all the
quality norms and found the causes for rejection.
Constraints : The main issue is ther is no proper
logging system for concern registration to track any
improvement for the initiatives undertaken.
PPP
model
in Omfed has mainly two private partnership. One is
infrastructure
with transporter and other with contractual labour
development and work force supplier.
cattle
extension In order to manage the the Margin if Rs 6/ Lit of
services
milk most of the labour is outsourced to control
cost.
Training and HRD
OMTDC training centre has been established to
provide training to farmers an society for proper
management of milk generation.
Corporate
social The main CSR is to collect milk from all farmer and
responsibility
pay to them irrespective of the demand.
(CSR)
Sustainability
There is no such measures taken on sustainability.
Even the Effluent Treatment Plant at Bhubaneswar
diary is under capacity due to which untreated
water is discharged directly outside.

The available performance measurement metric of OMFED suffer from two

main limitations when they are used for performance measurement of
supply chains.
1.) Their financial accounting principles lack forward looking
perspective and measurement is restricted to directly measurable
indicators.
2.) Secondly, these systems are not suitable for cutting edge SCM
applications where performance measurement has to take into
account wide range of controlling targets .
Moreover, OMFED lacks approach in which a supply chain must be viewed
as a whole entity and measurement system should span across all stages
of the supply chain. This mainly due to government interventions in all
decisions as the farmer profitability is given top priority than federations.

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10. Challenges
10.1 During the
Procurement phase
1. The commitment of Omfed to procure each and every amount of
milk that is brought to them .
2. Maintaining the quality of milk all through the supply chain since it is
highly temperature sensitive products requires constant quality
checks and monitoring failing which results in incurring huge costs of
wastage and unmet demand.
10.2 At the Diary Plant
level
1. Cleaning & hygiene difficulties faced at the plant level due to
nonstop
working
period. Although every Saturday the
pipelines are cleaned yet on the other working days there is a
presence of odour in the processing area.
10.3
During
the
Distribution phase
1. Lack of superior cold-storage transport
2. Distribution wastage due to improper storage
3. Advent of organized retail channels
Increased availability of branded, packaged milk
Reduced role of middlemen, mainly the milk vendors
(consequent unemployment) .
4. The distributors are offered no assistance when it comes to
transportation of milk to retailers resulting in reduced margins for
them.
Others
1. Customer must leave home to buy and come to the retail
points for their need. There is no facility available for
customer to get the product at their door step.
2. Presence of strong competitors like Kamadhenu, Milky Moo, Amul, Nava
Jeevan, Priviraj are the greatest threat for OMFED.

11. SUGGESTIONS AND RECOMMENDATIONS

In this competitive times starting from when Omfed had monopoly to
springing up of lot of competitors like Milky Moo,Amul etc., Omfed has to
make sure that its products reach the market effectively at minimal cost.
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Single method of distribution of a company's products is not self-sufficient

to survive in the market.
Some of the suggestions according to our team are listed below to tackle
the challenges we enlisted;
1. Providing milk from Liquid Milk Vending Vans
2. Home Delivery For Regular Customers on
subscription/payment basis
3. Establishment of Liquid Milk Vending Machines.
4. Flexible credit policies for Retailers

11.1 Providing Service of Liquid Milk Vending Van

The liquid milk vending van can be driven to Streets, subways,

festivals, village markets, and fairs where consumers eagerly await

for milk and the Omfed milk booth is far away.

It can travel to events like temples on Mondays where milk is

extensively used for praying Lord Shiva.

The mobile milk van as shown in the figure below, has a fresh milk
vending machine on the side, and can travel to different select
destinations.

Benefits :
1.
2.
3.
4.

Ensure supply of fresh and good product staright from the factory
With less expense giving maximum efficiency
Decreased distribution channel promises maximum profit
Less expense in promotional activity since the vending van
canpromote the product and create awareness.

1.2 Home Delivery for Customers

Home Delivery aims to provide the direct to home channel for

OMFED milk and milk products. People can sit at home and order
from home instead of visiting the booths.

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The situation now is although there are Omfed booths all over
Bhubaneswar but consumers have to come to booths to buy mil.
The consumers, who are purchasing milk on daily basis can get
benefited by subscribing or paying in advance. This will reduce
bargaining power of retailers.

Mother Dairy, a wholly owned subsidiary of National Dairy Development

Board (NDDB), and one of the major suppliers of milk and milk products to
the Delhi-NCR region in India has partnered with Noida based ecommerce
company Delivery on Call to home deliver its products in Noida. It was
started in November 2011 and has so far been providing delivery services
for groceries, bakery products, meat, laundry services, restaurants, repair
services etc averaging about 150-175 orders a day; Mother Dairys milk
products were added to their list of services in October 2012.Even
SardaFarms a milk production company in Mumbai and Nashik region
delivers milk to its customer at the doorstep.
Benefits;
1. Creates brand awareness and promoted brand loyalty
2. Ensure good production Cycle
3. Reduce retailers dependency
4. Helps maintain good customer relationship
5. Door to door Service

11.3 Establishment Liquid Milk Vending Machines

This system of retailing pasteurized milk through automatic vending

machines also called ATM(Any Time Milk) has been introduced
successfully in two countries, India & Mexico.
It is a system which does not involve retail packaging by the milk
plant as the consumer provides his own container and so eliminates
one of the substantial items of cost in providing the consumer with
packaged safe milk. It also helps to deduct the packaging cost.
Another important characteristic tending to reduce cost are that the
milk plant sells directly to the consumer and that the milk is
handled in bulk up to the point of retail sale.
This fresh milk vending machine is ideal for city squares or locations
which would house the vending machine.
Benefits :1.
2.
3.
4.
5.

Instant distribution
Low transportation expenses
Increase brand awareness
Increase availability of the product
Round the clock service

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6. Less manual effort

7. Ensures better service
8. Zero packaging cost

11.4 Flexible credit policies for Retailers

OMFED follows the cash basis of transaction. Retailers pay advance

payments. Due to these stringent credit policies, OMFED is losing
out on lot of bulk and Institutional sales which are very critical factor
in increasing the revenues.

OMFED should make its credit policies more lenient in order to

enhance its sales and hence, increase profits.

What Milk Mantra is doing in its SCM?

Milk Mantra started operations in the recent past and currently has
two collection centres (CC).The Bulk Milk cooler is located in the CC.
Each CC has 10-15 collection points (CP) from where the milk is
collected and brought to the respective CC.

The milk is collected twice daily. Once in the morning (Session 1)

and then again in the evening (Session 2).

Each CC has two tempos that go along their separate routes

collecting milk.

Every CP in a route has a different Farmer Reporting Time which is a

time interval given to all the farmers depositing their milk at their
corresponding CP. This time interval is decided based on the CP
sequence of the route.

New member additions at any CP happen only if a farmer himself

comes forward and declares his willingness to deposit milk.

Once the milk is deposited by a farmer, the CP In-Charge uses a

lactometer to test its purity and a butyrometer to test its fat
content. The rate of the milk is decided based on both the purity
and fat content.

There are two workers at the CP, one for handling the machinery
and the other to handle the accounts.

The farmers are paid on the 4th, 14th and 24th of every month.

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12. CONCLUSION
OMFED is a prominent organization in the Diary Cooperative sector in the
state of Odisha which is running on profit year after year. The
Bhubaneswar diary plant that we visited has proved itself to be a profit
making plant of OMFED. OMFEDs end to end supply chain process from
procurement to processing to storage to distribution of milk and its
related products is undoubtedly clear-cut to its kind. The company is also
taking utmost care of the quality of milk that reaches its customer.
Omfeds milk and related products are highly accepted among the
consumers.
With the springing up of new competitors in the private sector, it has
become imperative for Omfed to know the challenges that it is facing and
chalk out solutions but that is to be done staying in the boundary of
Government policies and norms.We hope our recommendations can be
thought provocative and be helpful to deal with modernization and
challenges currently faced. If implemented successfully these solutions
would not only result in reducing overall cost but also give OMFED a new
and improved edge in this cut throat competition in the Diary Cooperative
sector.

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13. REFERENCES

1. www.omfed.com
2. Supply Chain Management 3rd edition Chopra & Meindl
3. Fundamental of Supply Chain Management,2011Dr.Daweilu&Ventus
Publishing Aps.
4. Journal of Business and Management Sciences,2014,Vol2. Suply
chain management in OMFED-Creating values through White
Channels : Case study by Adyasha Suvadarshini & Gopal Prasad
Roy.
5. Elsevier Internatioanl journal of production economics 87 (2004)
A framework for supply chain performance : by A Gunasekaran, C
Patel & Ronald E McGaughey
6. Performance Measurement of a Diary Supply Chain : A Balance
Scorecard Perspective by Dr. Gyan Pakash (IIIT and Management ,
Gwalior )& Mr. R R Pant (Aligarh Mulim University)

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