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Acknowledgement

My Training Experience at Parikh Enterprises, Micropark Logistics Pvt. Ltd.


has been truly a fulfilling and rewarding one. I would like to thank Mr.
Hemang Parikh & Mr. Hitesh Parikh, Director of Micropark Logistics Pvt.
Ltd. Nagpur for allowing me to work with Parikh Enterprises.

The successful completion of this project work gives me an opportunity to


thank and extend my sincere gratitude to Mr. Avinash Meshram and Mr.
Fransis at Parikh Enterprises, Micropark Logistics Pvt. Ltd. who has helped
me in giving his suggestions and having shared his experience.

We immensely indebted to Mr. Lalit Khullar, Director, faculty of Tirpude


Institute of Management Education, TMU, Nagpur for giving us an
opportunity to carry out this project work.

Last but not the least I would like to thank my family and friends for their
support at every step of my life.

Amol Krushnarao Talekar

MBA, TIME, TMU

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College Certificate

This is to certify that Mr. Amol Talekar is a bonafide student of this


institute and has successfully completed his project entitled “ Micropark
Logostics Private Limited” for partial fulfillment of course MBA
(Marketing) from Tirpude Institute of Management Education (TMU),
Nagpur.

Lalit Khullar Prof. Shraddha Shende

Director, Internal Guide

TIME, (TMU) TIME, (TMU)

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Company Certificate

This is to certify that Mr. Amol K. Talekar student of Master of Business


Administration from Tirpude Institute of Management Education,
Nagpur has satisfactorily completed his project work entitled Supply Chain
Management, in Micropark Logistics Pvt. Ltd. Nagpur in Administrative
Department of Ranbaxy from 20th May,2009 to 23rd July, 2009.

Authorized Signature

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Executive Summary

Micropark Logistics Pvt. Ltd is one of the leading Logistical Company in


India focused on Distribution & Warehousing of Pharmacitical, Cellular
products, etc.

The project entitled “Supply Chain Management in Micropark Logistic Pvt.


Ltd. Nagpur” was carried out to understand the logistical operational
functions & operational areas of supply chain management. Administrative
working like taking orders from the parties or clients , billing etc by using
the SAP software. Also claiming of the products is done in case the product
gets damaged, broken or gets expired or is out of date. Billing of the product
is done on the basis of manufacturing date of the product and the production
of the product is done batchwise.

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Table of content

Sr.No Particulars Page No

1. Introduction 6

2. Review of Literature 15

3. Introduction to company 16

4. Introduction to topic 26

5. Research Methodology 30

6. References 35

7. Conclusions 36

8 Suggestions 37

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Chapter 1

Introduction

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Introduction to Supply Chain Management :-

Supply chain management (SCM) oversees and optimizes the processes of


acquiring inputs from suppliers, converting those inputs into a finished
product, and delivering those products—or outputs—to customers. SCM is
an umbrella term that refers to a variety of approaches for the management
of natural and human resources from the supplier to the manufacturer or
service provider to the consumer and back . This includes the identification
and creation of new opportunities for products and services in cooperation
with upstream and downstream partners, and the involvement of internal as
well as external stakeholders in decision making on supply chain matters.

Traditionally, a supply chain is:

A network of companies that exchange resources such as materials and


information to deliver products to customers. Supply chains consist of a
company, its suppliers, its distributors, and its customers.

In the traditional supply chain structure resources flow downstream to the


consumer. The supply network consists of a focal company and its suppliers,
retailers, and customers. Figure shows the basic structure of a supply chain.

Supplier Company Retail Customer

A supply chain is the stream of processes of moving goods from the


customer order through the raw materials stage, supply, production, and
distribution of products to the customer. All organizations have supply
chains of varying degrees, depending upon the size of the organization and

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the type of product manufactured. These networks obtain supplies and
components, change these materials into finished products and then
distribute them to the customer.

Managing the chain of events in this process is what is known as supply


chain management. Effective management must take into account
coordinating all the different pieces of this chain as quickly as possible
without losing any of the quality or customer satisfaction, while still keeping
costs down.

The first step is obtaining a customer order, followed by production, storage


and distribution of products and supplies to the customer site. Customer
satisfaction is paramount. Included in this supply chain process are customer
orders, order processing, inventory, scheduling, transportation, storage, and
customer service. A necessity in coordinating all these activities is the
information service network.

In addition, key to the success of a supply chain is the speed in which these
activities can be accomplished and the realization that customer needs and
customer satisfaction are the very reasons for the network. Reduced
inventories, lower operating costs, product availability and customer
satisfaction are all benefits which grow out of effective supply chain
management.

The decisions associated with supply chain management cover both the
long-term and short-term. Strategic decisions deal with corporate policies,
and look at overall design and supply chain structure. Operational decisions
are those dealing with every day activities and problems of an organization.
These decisions must take into account the strategic decisions already in

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place. Therefore, an organization must structure the supply chain through
long-term analysis and at the same time focus on the day-to-day activities.

Furthermore, market demands, customer service, transport considerations,


and pricing constraints all must be understood in order to structure the
supply chain effectively. These are all factors, which change constantly and
sometimes unexpectedly, and an organization must realize this fact and be
prepared to structure the supply chain accordingly.

Structuring the supply chain requires an understanding of the demand


patterns, service level requirements, distance considerations, cost elements
and other related factors. It is easy to see that these factors are highly
variable in nature and this variability needs to be considered during the
supply chain analysis process. Moreover, the interplay of these complex
considerations could have a significant bearing on the outcome of the supply
chain analysis process.

Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the
movement of products along it. The supply chain starts and ends with the
customer.

Customer:

The customer starts the chain of events when they decide to purchase a
product that has been offered for sale by a company. The customer contacts
the sales department of the company, which enters the sales order for a
specific quantity to be delivered on a specific date. If the product has to be

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manufactured, the sales order will include a requirement that needs to be
fulfilled by the production facility.

Planning:

The requirement triggered by the customer’s sales order will be combined


with other orders. The planning department will create a production plan to
produce the products to fulfill the customer’s orders. To manufacture the
products the company will then have to purchase the raw materials needed.

Purchasing:

The purchasing department receives a list of raw materials and services


required by the production department to complete the customer’s orders.
The purchasing department sends purchase orders to selected suppliers to
deliver the necessary raw materials to the manufacturing site on the required
date.

Inventory:

The raw materials are received from the suppliers, checked for quality and
accuracy and moved into the warehouse. The supplier will then send an
invoice to the company for the items they delivered. The raw materials are
stored until they are required by the production department.

Production:

Based on a production plan, the raw materials are moved inventory to the
production area. The finished products ordered by the customer are
manufactured using the raw materials purchased from suppliers. After the

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items have been completed and tested, they are stored back in the warehouse
prior to delivery to the customer.

Transportation:

When the finished product arrives in the warehouse, the shipping department
determines the most efficient method to ship the products so that they are
delivered on or before the date specified by the customer. When the goods
are received by the customer, the company will send an invoice for the
delivered products.

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Process View of a Supply Chain

Supply chain process cycle illustrates the four cycles and five supply chain
stages

Customer
Customer order Retailer
cycle

Manufacturi Replenishm
ng ent
Distributor
cyce cycle

Procureme
Manufactur nt Supplier
er
cycle

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Importance of Supply Chain Management

Of late, supply chain management is gaining growing importance because of


the following reasons :

• The total time for materials to travels through the entire supply chain
management can be quite long . Since the materials spends so much
time waiting in inventory at various stages in the supply chain, there is
a great opportunity to reduce the total supply chain cycle time leading
to a corresponding reduction in inventory, increased flexibility,
reduced costs and better deliveries.

• Many companies have drastically improved their internal operations


and now find it necessary to consider relations with external customer
and supplier in the supply chain to gain further improvements in their
operations.

• Supply chain thinking is an application of systems thinking and


provides a basic for understanding processes that cut across a
company’s internal department and processes that extend outside the
company as well.

• The goals of supply chain management are to reduce uncertainty and


risks in the supply chain, thereby positively affecting inventory levels,
cycle time, processes and ultimately end-customer service levels.

• The design, planning and operation of supply chain have a strong


impact on overall profitability and success.

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• Supply chain management has become a hot competitive advantage as
companies struggle to get the right stuff to the right place at right
time.

• All the “Total Quality Management”, “Just-in-Time System”,


“Reengineering”, “Team work” and “Delighting the Customers”
depends on the relationships with supplier and distributors who are
part of the supply chain.

• Supply chain management includes transportation vendors, suppliers,


distributors, banks, credit and cash transfers, bills payable and
receivable, warehousing and inventory levels, order fulfillment and
sharing customer, forecasting and production information.

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Literature Review

Abstract:

In a competitive business environment that requires strategy and innovation


to improve the bottom line, supply chain management has been vital in
creating competitive advantage. Increasingly, companies are also identifying
sustainability as an opportunity to create competitive advantage. This project
explores supply chains as a leverage point in advancing sustainable
development. Corporations have developed different tools to interact with
their suppliers on sustainability. Three of these devices were analyzed
against a framework for strategic sustainable development to identify some
of their strengths and weaknesses. A general set of criteria for sustainable
supply chain management devices that employs a strategic, whole-systems
perspective was then developed.

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Chapter 2

Introduction
To
Company

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Introduction to Micropark Logistics Private Ltd.

Micropark Logistics Private Limited is in the business of DISTRIBUTION,


WAREHOUSING and C & F Agencies. ‘Micropark’ is one of the pioneer
operators in the field of Supply Chain Management in Central India.
Micropark Logistics Pvt. Ltd. incorporated in year 2004 is headquartered in
Nagpur & has branch offices in Pune, Mumbai, Hyderabad & Indore.
Micropark as an organization works for achieving the highest level of
customer satisfaction on a continuous basis. ‘Customer Orientation’ is core
to all the processes involved in area of its operation. Due to its process
driven approach Micropark Group is one of the first organizations in Central
India to receive ISO 9000:2001 certification across it sister concerns.

The group’s entry in the field of supply chain management started with one
of its sister concern M/S Mehadia & Sons being appointed as the C & F
agents’ in the year 1984. Since then ‘Micropark’ as a group has grown into
a Logistic Solution provider for around 20 companies of high repute in
Pharmaceutical, Automobile, Consumer durables & FMCG sectors. The
emergence of Micropark as a reliable partner in providing SCM solution for
these companies is the result of its customer-oriented approach & its
continuous strive to achieve highest level of Customer satisfaction through

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process driven approach in every aspect of its operations. The group keeping
with the times is using IT solutions in its entire operations.

Micropark group handles operations for Mahindra & Mahindra, Zandu


Pharmaceuticals, RFCL, DIESL, Biological E, Indoco Remedies, S.C.
Johnson (All out), AGIO Pharma, Nokia (CDMA), SONY Ericsson, V John,
Biocon, Peter England, Amway, Pfizer, Ranbaxy, Torrent, Cadila, Sarabhai,
Alembic, Levis, Glenmark through its sister concerns viz. Parikh
Enterprises, Mehadia & Sons, Micropark Infotrade, Micropark Distributors.

Company Profile:

Micropark as an organization works for achieving the highest level of


customer satisfaction on a continuous basis. ‘Customer Orientation’ is core
to all the processes involved in area of its operation. Due to its process
driven approach Micropark Group is one of the first organizations in Central
India to receive ISO 9000:2001 certification. The emergence of Micropark
as a reliable partner in providing SCM solution for these companies is the
result of its customer-oriented approach & its continuous strive to achieve
highest level of Customer satisfaction through process driven approach in
every aspect of its operations. The group keeping with the times is using IT
solutions in its entire operations.

Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is


an integrated, research based, international pharmaceutical company,
producing a wide range of quality, affordable generic medicines, trusted by

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healthcare professionals and patients across geographies. Ranked 8th
amongst the global generic pharmaceutical companies, Ranbaxy today has a
presence in 23 of the top 25 pharmaceutical markets of the world. The
Company has a global footprint in 49 countries, world-class manufacturing
facilities in 11 countries and serves customers in over 125 countries.

In June 2008, Ranbaxy entered into an alliance with one of the largest
Japanese innovator companies, Daiichi Sankyo Company Ltd., to create an
innovator and generic pharmaceutical powerhouse. The combined entity
now ranks among the top 15 pharmaceutical companies, globally. The
transformational deal will place Ranbaxy in a higher growth trajectory and it
will emerge stronger in terms of its global reach and in its capabilities in
drug development and manufacturing.

Warehouse

Warehousing plays a key role in the supply chain management. With its
primary aim to control the movement and storage of materials within a
warehouse and process the associated transactions, including shipping,
receiving, put away and picking it requires experience and service set up of
its own to give a world class service.

Keeping with the tradition of customer centric operations & providing


services with highest quality standards Micropark Warehouses offer modern
features, which are unmatched & ‘first’ in the Industry in the region.
Standard warehousing norms are followed meticulously to give a smooth
and flawless service. Micropark has redefined the definition of Warehouses
and these facilities can be called as SHOWHOUSES.

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Micropark offers warehousing facilities at Nagpur, Pune, Mumbai,
Hyderabad and Indore. These facilities are strategically located to offer
operational advantages. Micropark is looking for expansion of its
warehousing business in other key cities with similar modern infrastructure
and reliable services.

Distribution

Distribution is a critical component in success of any brand in


Pharmaceutical, Consumer & Other Sectors. Micropark Group is one of
Central India’s leading business groups with multiple businesses spanning
across the Logistics space. It is one of the pioneer operators in the field of
DISTRIBUTION through its various affiliates.

The Micropark Group presently has distribution facilities in the cities of


Nagpur, Pune, Mumbai, Hydrabad and Indore. The group is providing
Distribution services to 20 companies of high repute in Pharmaceutical &
Consumer sectors.

Company Services:

C & F Agencies

Micropark Group is one of the pioneers in the C & F Agency business with
Top Class warehousing facilites. The C & F Agency business operates over
2.0 Lac Sq. ft. of warehousing space at multiple locations.

‘C & F Agency’ has become a critical component in successful Sales &


Distribution of any brand / product in Pharmaceutical, Consumer & other

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sectors. Over 20 reputed companies have put their faith in the ability of
Micropark Group to take care of this vital component.

Micropark is one of the first & very few organizations in Central India to
have been provided ISO 9000:2001 Certification across the entire Group
Companies.

Micropark Group’s list of clients includes reputed companies like Indoco,


Ranbaxy, Zandu Pharmaceuticals, Amway, Pfizer, Pharmacia, Torrent, East
India, Himalaya Drugs, Bioilogical E, Cadila, Agio, Fourts India,
S.C.Johnson, Indo French, Anglo French, BE, AIOCD Ltd(Sandoz), Troika
Pharmaceuticals.

The group has provided top class facilites at Nagpur, Pune, Mumbai,
Hydrabad & Indore for CFA Operations

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FIGURE SHOWS THE WORKING PROCESS OF CFA

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Selected Client Engagements:

Agio Pharma Ltd.

AIOCD Ltd.(Sandoz)

Alembic Pharma

AMWAY

Anglo French Drug Ltd.

Cadila Pharmaceuticals Ltd.

DIESEL Ltd

EAST India Pharmaceuticals

Fourts India Pvt. Ltd.

Himalaya Drugs

Indo French Labs

Indoco Remedies Ltd.

PFIZER Limited

PHARMACIA India

RANBAXY Laboratories Ltd.

Shreno Ltd (YEAR GLASS)

TATA Indicom

Troika Pharmaceuticals Ltd.

Unichem Labs Ltd (Foreva division)

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ZANDU Pharmaceuticals

MICROPARK GROUP COMPANIES

MICROPARK COMPANIES BUSINESS IS CONDUCTED THROUGH


FOLLOWING FIRMS:

MICROPARK LOGISTICS PVT. LTD. Nagpur, Pune, Hydrabad,


Mumbai, Indore

PARIKH ENTERPRISES Nagpur, Pune

MICROPARK DISTRIBUTORS Mumbai

MICROPARK INFOTRADE Nagpur

MICROPRO S/W SOLUTIONS PVT. LTD. Nagpur, UAE

MEHADIA & SONS C & F DIVISION Nagpur, Pune

R.J.TADELINKS Nagpur

MEHADIA TRADELINKS Mumbai

MEHADIA & SONS Nagpur

VASANTLAL BROTHERS Nagpur

AJIT PHARMATICS Nagpur

ADDON RETAIL PVT. LTD. Mumbai

SANNITI RETAIL PLUS PVT. LTD. Nagpur

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Vision & Mission of Micropark Pvt. Ltd.

Vision

To become a leading Multi Locational National Level company providing


integrated end-to-end supply chain solutions like warehousing, inventory
management, cash flow management and marketing of product and services.

Mission

To provide quality services across India in the areas of Warehousing, C & F


Agencies, Dealerships, Distributorships and Marketing of product &
services.

Vision & Mission of Ranbaxy

vision

To achieve significant business in proprietary prescription products by 2012


with a strong presence in developed markets.

Mission:

To be one of the worlds’s leading strategic inputs provider while


maintaining highest Quality & confidentiality standards with a global
outlook. We will continuously strive for perfection while even attracting the
best talent across globe and we will keep integrity, ethics, professionalism

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and teamwork as our pillars for success. We will even contribute in the local
communities continuously within the geographies we operate in.

Chapter 3

Introduction
To
Topic

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Operational Manager

This role manages order processing, ensuring that orders are properly
fulfilled, payment is received, and orders are shipped. The Operations
Manager can search for customer orders, view details, manage order
information, and create and edit returns. For the reseller and hosting models,
this role is responsible for customer service, and oversees customer service
in the other models.

Historical Stock Status Calculations

Maintain histories of cost changes, including Average Perpetual, Last In-


First Out (LIFO) Periodic, and First In-First Out (FIFO) Periodic values.

Bill of Materials

Maintain full bill record of the products which moves out of store or sold to
the parties for analyzinge to which product is given to particular party.

Detailed Insight into Inventory Usage

• More effectively analyze sales, transfers, and materials used for


manufacturing by drilling down to each transaction that reduces inventory,
including those in debited and credited accounts.

• Access supply and demand information using Allocated and On Order drill
downs and view item allocations in existing orders quickly and easily.

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• Narrow search results by providing date ranges for item transaction
inquiries.

Extended Pricing

• Personalize pricing by combining date ranges and quantity break options


with special net, percentage-off, or value-off pricing for specific customers
or groups of customers.

• Use relational pricing to update customer price lists instantly and reflect
fluctuations with your supplier when you change your base net prices.

• Choose the pricing method that works best for each item, including pricing
by currency amount, percent of list, percent markup based on current or
standard cost, or percent margin based on current or standard cost.

• Make individual or mass updates to your pricing lists with helpful wizards.

• Easily set up and maintain price lists using unlimited combinations of units
of measure, price levels, and currencies.

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Flow diagram shows the Billing process or Order process of products

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Order taken

Product entry in the


system

Invoice / Bills (office to


stores)

Product separation

Product checking

Product packing

Dispatching

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Chapter 4

Research Methodology

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Objective:-

• To understand the logistical operational functions of Supply Chain


Management

• Understanding of the operational areas of logistics management

and their interrelationships.

Data Collection:

Market Penetration is the sole of Distribution Business. Companies use


market penetration as a key factor in implementing their growth strategy &
most of their marketing activity revolves around penetration. The
Distributor’s set up plays a very important role in achieving good Market
penetration for any product, brand or company.

At Micropark meticulous planning & implementation goes in to achieve


maximum market penetration. The distribution set up at Micropark consists
of trained manpower backed by strong planning, processes and
infrastructure.

Highlights of Microparks distribution set up:

Coverage:

More than 1500 retailers & 200 Distributors/ stockiest are covered in Nagpur
& Vidarbha region.

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Manpower:

Well-trained and motivated Sales team comprising of 2 Sales managers, 2


Sales Supervisor, managing a team of 15 Sales Representatives covering
every nook & corner of the market.

Sales Management tools:

Effective implementation of sales planning & monitoring tools for ensuring


effective Market coverage & Product availability. This comprises of
Permanent Journey Plan, Standard Route plans, Visit reports & Outlet Take-
off report.

Market Coverage:

Regular market coverage cycles ensuring reach to every retailer are planned.
The sales team reaches every retailer twice / thrice in a week depending
upon the planned routes for different Companies & product lines. The sales
team also ensures proper merchandising activities as per the Marketing Plan/
Campaigns for various products.

Infrastructure:

2 Retailing/ Delivery Vans ,Computerized billing, SMS Service to keep the


retailers/ stokiest informed about latest schemes and offers.

Market Feedback:

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Regular surveys are conducted for different products , which ensures regular
feedback to the companies.These feedbacks have provided the companies in
improvising and making effective marketing plans.

Recognition: Timely & Suitable Incentive & recognition policies ensure a

motivated sales team.

Primary Data:

• Face to face interview with the Doctors

• Telephonic Interview

• Street Mapping for understanding the various requirment

Secondary Data:

• Banners & Posters

• Channel listing on websites

• Annual Brochure of Medical Association & different trade


Associations

Methodology:

• The design of research (medium of interaction)


• Participant observation

• Personal Interviewing (by appointment)

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• Telephonic Interview

Sampling Plan:-

1. Sampling universe:

It is space where our study is conducted upon area defined to the


study. In this project sample universe is restricted to Hospitals,
Doctors and clinics of Nagpur city.

2. Sample size:

Since a vast sample gives more reliable information so we took the


sample size of 50 stores (approx) in the city.

3. Sample unit:

The sample unit means How many Hospitals,Doctors called per


day .In this project sample unit is 15 Hospitals, Doctors /day

4. Sampling Frame:

Sampling frame means the boundaries under which survey has to be


completed. In this project sampling frame is medicals of Nagpur city.

5. Geographical location:

Maharashtra

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6. Respondents profile:

• Hospitals,Doctors, Medical shops

• Clinics / Medical stores

REFERENCES

• Marketing Management by Philips Kotler

• A text book on Supply Chain Management

• Principle of logistical management by Omprakash G. Sony

• Beamon Benita, M. 1999, ―Designing the green supply chain,


Logistics Information Management 12 (4):332-342.

• Davies, Tony., 2006, ―Collaborate to innovate, Supply Management


11 (1):34.

• http://www. microparkindia.com

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• http://www.supplychain.com/sap

CONCLUSION

“It is said that a chain is only as strong as its weakest link. This holds true
for the supply chain as well”.

• Online administrative working by advanced SAP software

• Good contacts helpful in maintaining better customer relationships

• Large market coverage, and easy availability of products

• Delivery of products is done on the basis of early batch production

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SUGGESTIONS

Keep doing various Events and Promotional Activities to boost the sales of
the Brand, some are mentioned below:

• Effective implementation of scheme & offer announced by the


company.

• Display of POP Material, Banners, Posters, etc. at Retail Outlets

• Arranging dealer meets

• Recreational Activities with dealers like picnics and cricket matches.

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