A

PROJECT REPORT ON

“ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT

PRACTICES ADOPTED BY
DAIRY INDUSTRIES DEPENDING UPON THEIR OUTPUT CAPACITY”

Submitted By:
Under the Guidance
: Abhishek Singh
of
Mr. Balwant Pandey
: Anil Kumar Yadav
(faculty IP Department)
: Gaurav Nandan

: Kuldeep Yadav

: Mohd. Gufran

: Snehil Shukla

: Sushil Saurabh

: Vishesh Shukla

Submitted to
INSTITUTE OF ENGINEERING AND RURAL TECHNOLOGY
ALLAHABAD

1
 INSTITUTE OF ENGINEERING AND RURAL TECHNOLOGY

( Approved by AICTE New Delhi & Affiliated to AKTU )

Ref. No. :-
Date:-

Certificate

This is to certify that we are the student of Bachelor of Technology course with
specialization in Industrial Production Engineering, for the session of 2014-2018 of
Institute of Engineering And Rural Technology, Allahabad.
The students have worked under the supervision of Ms. Balwant Pandey and have
satisfactorily finished their project work, in this academic session. The project submitted
by students is their own work, and is complete so as to warrant its presentation for
examination.
The project work, entitled to “ANALYTICAL STUDY OF SUPPLY CHAIN
MANAGEMENT PRACTICES ADOPTED BY DAIRY INDUSTRIES DEPENDING
UPON THEIR OUTPUT CAPACITY” which is in partial fulfillment of requirement for
the above course, and is being forwarded for University for examination.

Date:
Place: Allahabad

(Guide) (Projectee)
Ms. Balwant Pandey : Abhishek singh

: Anil Kumar Yadav

: Gaurav Nandan

: Kuldeep Yadav

: Snehil Shukla

: Sushil Saurabh

: Vishesh Shukla
2
 DECLARATION

To,
The Director,
Institute of Engineering & Rural Technology
Allahabad

Respected Sir,

We the students of IP branch , hereby declare that the project report entitled “ANALYTICAL
STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES ADOPTED BY DAIRY
INDUSTRIES DEPENDING UPON THEIR OUTPUT CAPACITY” is submitted by us
for the partial fulfillment of B. Tech Course at Institute of Engineering & Rural Technology,
Allahabad.
This report is an original work prepared by us.

Place: Allahabad
Date: Name of Projectee
: Abhishek singh

: Anil Kumar Yadav

: Gaurav Nandan

: Kuldeep Yadav

: Snehil Shukla

: Sushil Saurabh

: Vishesh Shukla

3
 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is not
different. We are thankful to my faculty Ms. Balwant Pandey for supporting me and
guiding me throughout the project. This report would not have been possible without his
help.

We are equally thankful to the faculty memebers of the college for continuous help
and motvation.

Team Projectee

4
 INDEX

Sr.no. CHAPTERS PARTICULARS PAGE NO.

1 CHAPTER 1 Aim
Objectives

2 CHAPTER 2 Introduction of company

3 CHAPTER 3 Introduction of topic
4 CHAPTER 4 Literature review
5 CHAPTER 5 Research methodology
6 CHAPTER 6 Data analysis and interpretation
7 CHAPTER 7 Technique Comparision
8 CHAPTER 8 Conclusion
9 CHAPTER 9 Suggestions
10 ANNEXURE 2 Biblography

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 AIM

“ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT

PRACTICES ADOPTED BY DAIRY INDUSTRIES DEPENDING
UPON THEIR OUTPUT CAPACITY”

OBJECTIVES

· To study supply chain management at Allahabad Dairy Industry.

· To study supply chain management at Parag Dairy Industry.
· To study supply chain management at Shyam Dairy Industry.
· To study supply chain management at Mother Dairy Industry.
· To study milk procurement process at these industries.
· To study production process at these industries.
· To study distribution network of these industries.
· To focus on product distribution process.
· To study transport management system.
· To compare analytical data of all the Dairy industries.
· Suggest/ Allocate economically profitable and feasible supply chain management
technique for a particular capacity.
 CHAPTER 2
INTRODUCTION OF COMPANY

 Pradeshik Cooperative Dairy Federation, Uttar Pradesh: PARAG

INTRODUCTION

A milk cooperativ society in a village in Allahabad district set up in 1918 marked the beginning of milk
cooperatives in Uttar Pradesh. Successful efforts gave way to formation of Lucknow Milk Union in 1938, the
only Milk Union in the country; giving Uttar Pradesh the credit of being a pioneer state in the country in this
segment. PCDF was formed in 1962 with the aim to develop organized dairying in the State on Cooperative
lines PCDF's is a cohesive body that successfully does away with the exploitative forces of years to years-the
Middlemen. Therefore a direct link is established between the producer and the ultimate consumer. This Apex
Milk Cooperative draws its inherent strength from the farmers committed participation, and injects corporate
skills and dynamic professionalism into what is fundamentally a traditional institution.
Parag is the brand name for a range of milk and milk products including- Milk, Skimmed Milk Powder, Whole
Milk Powder, Butter, Ghee, and an array of indigenous milk products like Paneer,Curd,Peda,Milk Cake, Khoa,
Laddu, Mattha and Chhachh etc.

GROWTH

PCDF was the chosen agency to implement the World Banks prestigious Operation Flood programme in the
state. At present PCDF lends its support and services to 6,00,000 rural milk producers through 59 District
Milk Unions and about 13,500 Village Dairy Cooperatives in the State. Over the years PCDF has expanded,
diversified ,channelized into new areas , over new dimensions, onto new challenges.Today it features
prominently in the National Milk Grid,supplying Milk to Mother Dairy for sale in Delhi. Plants in Meerut
and Varanasi, are in constant operation to supply balanced diet feed for milch animals owned by farmers of
the state.

Training centres,
situated in Kanpur,
Lucknow, Meerut,
Varanasi, Agra and
RaeBareilly,impart
both skill and awareness based trainings. A Jersey Cattle breeding unit is located in RaeBareilly, for rearing
of Jersey Bulls. At FFHC Unit in Moradabad, Frozen Semen Doses of Good quality breed of milch animals
are prepared for Artificial Insemination Services. Fodder Seed Processing Plant located in Aligarh, produces
good quality Fodder Seeds for distribution to farmers for cultivation of good quality fodder feed for milch
animals.
However, PCDF's achievement cannot be quantified in mere statistics . Its real sense of pride lies in the fact
that its farmer members are heading surely and steadily towards a prosperous future and the knowledge that
its consumers reaffirm their faith in Parag year after year. It is in this context that PCDF's success is to be
measured.
 CHAPTER 3
INTRODUCTION OF TOPIC
The topic supply chain management is basically concerned with the following process
of supply chain management and operations, like
1. Procurement and Production
2. Packaging
3. Distribution
Practices followed by Dinshaw’s Dairy Products ltd. Nagpur.

1. PROCUREMENT AND PRODUCTION PROCESS AT

DINSHAW’S
The very first step of production at the Dinshaw’s dairy foods ltd. is procurement process
Procurement of raw milk plays a crucial and key role in production process and in dairy
industry as whole.
The procurement process involves mainly following things as
· Suppliers
· Quantity
· Quality
· Cost
· Transportation ,handling, storage

Suppliers:
There are two modes of raw milk procurement & supply.
1. Own collection
2. Other dairies

Own collection:-
Dinshaw’s has established dairies all over the Vidarbha and Maharashtra which
provides a continuous supply of milk.
This own collection also includes two modes as

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(a) Chilling centers
(b) Bulk coolers

Chilling centers:-
There are twelve chilling centers across vidarbha region. These plants are having
capacity of 25000 liters. Milk is stored at low temperature & as per the capacity of
plant supply is provided. There are some locations where chilling centers are located
Ravanwadi, Dahegao, Neharwani,Selu, Tiroda, Mandhal, Kodamendhi.

Bulk coolers:-
These are milk storage plants having low storage capacity around 5000ltrs farmers
provide the milk in loose i.e. 5 to 10 ltr each.
Dinshaw’s provide support to the dairy farmers to run their farms

MILK PRODUCTION
The buffalo and the cow and to a very limited extent the goat are the main milch
animals in the India. The buffalo contributes some 64 per cent, the cow 33 per cent and
the goat 3 per cent of the total milk produced in India. There are several well
recognized breeds of cows and buffaloes in the region such as Red Sindhi, Gir,
Tharparkar, and Sahiwal among the cows, and Murrah and Neeli Ravi among the
buffaloes, are outstanding breeds. The milk of the buffalo is comparatively richer in fat
content than that of the cow. In order to increase milk production we must have to :

• Upgrade our animals

• Better feeding practices and
• Well organized veterinary services, including art ificial insemination.
The population of the cross-bred cows and the upgraded buffaloes is expected to
increase the milk production significantly.

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MILKING CONDITIONS AND HYGIENE
Most of the milk in India is produced in the villages by farmers with small land
holdings and also by landless agricultural laborers. Although an increasing portion of
the milk produced is collected by the Supplier and other organized dairies, a significant
portion of the milk is still being converted into traditional dairy products due to lack of
refrigeration and transportation facilities. Conditions under which milk is produced in
the villages are far from satisfactory, mainly because of the economic backwardness of
the producers. The milk animals are housed in a part of the living space of the family
or in small closed or open yards adjacent to the family house. Flooring is usually a
plaster of mud. The cows are rarely washed before milking. Buffaloes generally
wallow in ponds, especially in the hot summer months.
Milking is done by hand, usually after suckling by the calf. Except in a few modern
large farms, milking machines are not used. Because of the distances between the
producing and consuming points, milk is unavoidably held at ambient temperatures for
a significantly long time leading to high microbial growth. The high ambient
temperatures in the region for the major part of the year support rapid microbial
growth.
The predominant types of micro flora in milk received in dairies are coliforms,
micrococci, lactic streptococci, spore-forming aerobes and corynebacteria, the majority
of these being contaminants from milk utensils. There is also a high incidence of
thermo uric bacteria.

MILK PROCUREMENT DEPARTMENT (MPD)

Milk is procured form area to fulfill the industry needs by procurement departments of
the companies. This is the most important department in every dairy industry, provided
with highly paid Procurement managers supported with a team of qualified and
experienced staff of zonal managers, area executives or milk collection controller, milk
collection supervisors, mobile testers, drivers, peons and etc. in order to support the
procurement staff a separate wing of accounts is also established. This

13
is the department with highest number of employees. Procurement of milk is not an
easy job.

It stands on the following five pillars:

1. Quantity
2. Quality
3. Cost
4. Competition
5. Man Power

Quantity:
Every dairy industry operates at its capacity to be a profitable. So in this competitive
environment to have some specific volume of raw milk some time is the biggest
challenge then quality. If a procurement department is failing to achieve the target
quantity, it means it is not functioning properly. This definitely affects dairy business.
Following factors affect the quantity:
Season (availability of milk)
Market competition
Rate of milk
Payment system (direct/banks)
Payment duration (at Spot, after week, after fortnight)
Milk procurement size (larger the size of the procurement greater the quantity of
milk)
Company strategy.
Raw milk receiving parameters

Quality:
Good quality milk is essential for production of good quality dairy products, taste and
flavor, free from pathogens and long keeping quality. Good quality raw milk must be:
a. Free from debris and sediment
b. Free from off-flavors.

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c. Low in bacterial numbers.
d. Normal composition and acidity.
e. Free of antibiotics and chemical residues.

Ultimate objective of any industry is to provide their customers with best quality
product. Hence quality play important role in the procurement of milk .It is the biggest
challenge for a company, as it affects cost, quantity, & competition. Increase quality,
decrease quantity, increase cost & competition. At procurement stage in order to have
good quality raw milk, company takes following steps:

1. Develop infrastructure
· Develop Centers
· Install Chilling units
· Develop Lab
· Development of VMC

2. Staff Recruitment
· Recruit
· Provision of Competitive salary
· Train
· Provision of necessary facility

3. Transportation system
· Tanker purchase
· Vehicles purchase/rent

Cost:
I. Before Set up
· Projection Cost
· Set up / Capital cost
· Running cost.

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II. After collection starts

Landed Cost: Landed cost is the sum of following three costs :

· Variable
· Fix
· Losses

Variable :
1.Raw milk Price
2. Ice / Chilling
3.Transportation cost; it includes Haulage cost

Fixed cost :
1. Procurement cost; includes salaries wages benefits
2. Utilities
3. Rents
4. Maintenance and repair
5. Weighing / measuring cost
6. Storage cost; it includes ice and chilling cost
7. Other miscellaneous cost; including quality cost and etc.

Fixed Cost on milk procurement can be reduced by increasing volume of milk. It can
also be reduced by controlling losses and over heads.

Competition:
Following types of competition exists in area for procurement of milk these
competitions some time are beneficial for company and sometimes may be harmful for
company.
1. Industry to industry
2. Producer to producer

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Industry to industry competition: This kind of competition occurs between the
industries through producers. Procurement staff of company plays an important role in
this type of competition due to their relations & behavior towards the producers. More
such kind of competition is beneficial for the producers. This kind of competition
results into following:
• Increase cost
• Decrease quality
• Increase quantity with each industry

Producers to producer’s competition: This kind of competition occurs between the

producers through companies. More such kind of competition is beneficial for the
industries & may results into following:
• Increase quantity
• Increase quality
• Decrease price

MILK PROCUREMENT TYPES:

Milk Procurement is the starting point of dairy industry supply chain. The procurement
process starts on the farm, where producers are advised, quality is monitored and raw
milk is collected daily from various Farmers/progressive farmers by mini-suppliers and
village milk collection centers countrywide and transported to factories in the most
cost-effective manner. Raw milk quality is the cornerstone of excellent dairy products.
Milk Procurement guards this quality with an eagle eye and ensures that company’s
production needs are met. Through teamwork within the supply chain, procurement
teams of companies ensure that raw milk losses are kept to the absolute minimum.

Milk procurement is basically of two types :

1. Supplier’s collection
2. Self collection
1. Supplier Milk collection system: In this case supplier brings milk with their own
sources at factory. The milk is scrutinized by quality assurance department of dairy as

17
per their standards. If milk pass all the quality test then this milk is received otherwise
the milk is rejected.

Mini/Hilux contractor: In this type of milk collection local supplier of area, collects
milk with their own resources and bring this milk to companies sub center. If milk is
according to company’s standard that milk is received otherwise rejected. All types of
collected milk are brought to sub centers, where it is chilled (by chiller or by ice) and
transported to Main center either through 1.7, 5 or 9 tons of tankers depending upon
the quantity of milk, here milk is chilled through chillers and transported to plant.
2. Self Milk collection system:
image

A. Village Milk Collection (VMC): In this case a local community nominated person
(VMC agent) collect milk from local farmers on behalf of company by using company
facilities. The VMC agent gets commission from company on per litter collected milk.
After collection VMC agent either himself approach the nearby center of company for
handing over of collected milk or company vehicle collect milk from that VMC agent
as per written agreement. Very good quality milk is collected through the VMCs. No
doodhi is involved in this type of collection.
B. Progressive formers: Having 10 adult buffalo or minimum 25 liters milk.
C. Direct Farmer: Having one or more milch animal and bring milk directly to sub
center or MCC
(Milk chilling center)

Bulk milk transport: A Milk procurement team of companies ensures that milk is
collected and transported to factories daily. Milk cooled on the farm or cooling centre
may be transported in bulk tankers. Bulk tankers are insulated, so the milk will remain
cold until it reaches the plant (provided the transport is fast, i.e. short distance or good
roads enabling milk to be delivered before the temperature of milk rises above 10*C

18
Reception of milk at plant: At reaching plant quality assurance staff of reception lab
takes the representative sample of whole milk tanker and analyses it for various
parameters as per standards of company. If milk found as per quality norms of
company the tanker is weighed and production department staff receive the milk for
further processing otherwise the sub standards raw milk tanker is rejected.

MILK PROCUREMENT SYSTEM (MPS):

The primary function of any Milk Procurement System (MPS) is to expedite dairy milk
producer’s payroll process. This is accomplished using a complex system that
documents the pickup, testing, delivery of milk, and issues payment to producers of
milk and those responsible for its transport. In addition to tracing the movement of
milk as it is picked up, tested, and transported to the plant, the Milk Procurement
System issues checks and records financial information for producers, haulers, and
vendors. MPS facilitates the dairy’s milk producer payroll process from beginning to
end.
ROLE OF MPD OF ANY COMPANY IN MILK PROCUREMENT:
Milk procurement department of any company provides a value-added service to all
their milk producers, ensuring that milk of the correct quality is produced and that
sufficient raw milk is always available to satisfy company’s needs, through the use of
strategies, processes, projects, systems and policy. Procurement teams of companies
manage a number of Milk Procurement responsibilities including:
1. Ensuring that the producers are paid promptly and accurately.
2. Purchasing raw milk from producers and transporting it to factories effectively and
efficiently.
3. Successful clean milk route development in various new identified areas.
4. Installation of bulk coolers in the area.
5. Milk yield improved.
6. Hygiene practices improvement at all levels of milk production and procurement
7. Reduction of Bacterial Count of milk.
8. Advanced training to drivers in the handling of mass milk in case of emergencies.
9. Trainings to field staff for handling of sample and client.

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 2. PACKAGING OF DAIRY PRODUCTS
Dairy packaging requires special care and attention. Different dairy products have
different packaging options. But one important factor to consider is to maintain the
freshness of the product. Dairy packaging manufacturers and suppliers have come up
with wide range of films, bags, laminates and equipment for packaging bulk dairy
products, as well as, consumer portioned items, by considering factors like protecting
the flavors and textures throughout display and distribution.

Most of the dairy product packaging is done in the paper based packing material. The
paper can be wax coated paper, plastic coated paper, grease proof paper, box boards
and other kind of dairy product packing paper. Then glass bottles are used as dairy
product packaging as these are easy to clean and almost inert to chemicals.

Apart from these there are aluminum foils, tin plates, timber, plastics, low and high
polymers that are used as dairy packaging material. Types of Dairy Products

• Milk: Powdered and Liquid

• Fermented Milk
• Whey Based Drinks
• Curds
• Cheese
• Cottage Cheese
• Cream
• Butter etc.

Branding in Dairy Packaging

Packaging is an integral part of the brand identity. The packaging of any dairy product
should deliver consumer expectations of natural dairy taste and freshness, and should
have a unique natural appeal and should extended shelf life. Dairy packaging has three
main functions to perform:

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• To contain the product
• To protect the product
• To sell the product

Types of Dairy Packaging

• Pouch/Sachet: The pouch or sachets are formed fro m either a reeled or flat film.
UV light may be used to sterilize the film. This type of dairy packaging is used to
package butter, cheese, milk powder etc.
• Carton: It plays a very important role in the bul k packaging of milk. It is used for
liquid, frozen and coagulated milk products. It is mainly available as preformed
containers or as precut blanks or sheets ready to be formed into containers.
• Packet: Usually made of plastic, it is used to ke ep pasteurized liquid milk.
• Barrel: Barrels are usually made of wood and are coated with wax on the inside.
They are used for bulk packaging of semi-solid buttermilk, sweetened condensed milk,
etc.
• Cup: Cups are made up of paper with plastic or wa x coating on inner surface. This
type of dairy packaging is usually covered with a lid and used for frozen and
coagulated products.
• Cans: This is popularly used for various types of solid, semi-solid and powdered
products. Aluminum cans widely used. They are the most convenient for gas packing
and suitable for dairy packaging.
• Bottles: Made of glass with aluminum closures, th e bottles are suitable for storing
milk shakes and liquid stuffs.
• Collapsible Tube: It is used for packaging semi-fluid products like sweetened
condensed milk, processed cheese spread etc. It is usually made up of aluminum and
lacquered on the inner side.

Types of Materials Used in Making Dairy Packaging

• Metalized plastic films
• PVDC coated films
• Plastic

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 • Paper
• Nylon
• LDPE
• Laminates
• Polyolefin
• Polypropylene
• LDPE polyethylene
• LLDPE polyethylene etc.

The milk chilling/dairy industry is one of the more intricate and diverse, and it requires
refrigeration and temperature controls that are reliable throughout all its aspects.
Refrigeration is needed in the production and storage of a wide range of products from
milk, cheese and butter.

And, refrigeration is a vital aspect in new product development. In addition, proper

refrigeration is needed to meet hygienic and government standards, the delivery of an
attractive dairy product to consumers, and energy consumption demands of the
refrigeration plant.
Recommended Compressor: MX-Series Single Stage
Application parameter Request for Quotation
Models MX100 MX200 MX300 MX400 MX600 MX900

Compressor speed 750 750 750 750 750 750

RPM
Milk Chilling 27500 55000 82500 110000 165000 247500
Capacity per day
in Liters
Electric motor KW 19 37 55 75 110 170
required
HP 25 50 75 100 150 225

Compressor speed 850 850 850 850 850 850

RPM

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 Milk Chilling 31000 62700 93500 125400 187000 280500
Capacity per day
in Liters
Electric Motor KW 22.5 45 67 90 125 190
required
HP 30 60 90 120 170 250

Note :
o
Evaporating Temperature : -10 C
o
Condensing Temperature : +40 C
o
Temperature of incoming milk : +35 C
o
Temperature of milk after chilling : +4 C
Duration for which ice is built in the Ice : 18 Hrs
Bank Tank
Refrigerant : Ammonia
The above data is for general guidelines only.

The above data is for general guidelines only.

3. DISTRIBUTION
TRANSPORT MANAGEMENT SYSTEM
A Transportation Management System (TMS) is a software system designed to
manage transportation operations.
TMS are one of the systems managing the supply chain. They belong to a sub-group
called Supply chain execution (SCE). TMS, whether it is part of an Enterprise Level
ERP System or from an integrated "Best of Breed" Independent Software Vendor(ISV)
has become a critical part of any (SCE) Supply Chain Execution and Collaboration
System in which real time exchange of information with other SCE modules has
become mission critical.
In more recent times, we have seen that these systems are being offered in many
different types of licensing arrangements. These different arrangements have given
shippers who otherwise would not be able to afford sophisticated software the
opportunity to utilize TMS to better manage this vital function. The 3 primary offerings
are:

23
• 1. On-Premise Licensing (traditional purchased li cense)
• 2. Hosted (remote)
• 3. On-Premise Hosted Licensing (a blend of 1 & 2)
Additionally, we are seeing that some software providers have either been acquired or
merged with traditional supply chain management consultancies and are now offering
shippers "blended" managed and software services as an outsourced process. Primary
Tier 1 TMS providers are still independent, carrier and 3PL neutral, and ERP neutral.
TMS usually "sits" between an ERP or legacy order processing and
warehouse/distribution module. A typical scenario would include both inbound
(procurement) and outbound (shipping) orders to be evaluated by the TMS Planning
Module offering the user various suggested routing solutions. These solutions are
evaluated by the user for reasonableness and are passed along to the transportation
provider analysis module to select the best mode and least cost provider. Once the best
provider is selected, the solution typically generates electronic load tendering and
track/trace to execute the optimized shipment with the selected carrier, and later to
support freight audit and payment (settlement process). Links back to ERP systems
(after orders turned into optimal shipments), and sometimes secondarily to WMS
programs also linked to ERP are also common. Most TMS systems help shipper
directly work with asset-based carriers and support dis-intermediation (including
avoiding use of non-asset based brokers and other intermediaries).
Transportation Management Systems manage three key processes of transportation
management:
• 1. Planning and Decision Making: TMS will define the most efficient transport
schemes according to given parameters, which have a lower or higher importance
according to the user policy: transport cost, shorter lead-time, fewer stops possible to
insure quality, flows regrouping coefficient…
• 2. Transport follow-up
TMS will allow following any physical or administrative operation regarding
transportation: traceability of transport event by event (shipping from A, arrival at B,
customs clearance…), editing of reception, custom c learance, invoicing and booking
documents, sending of transport alerts (delay, accident, non-forecast stops…)

24
• 3. Measurement
TMS have or need to have a Logistics KPI reporting function for transport.
Various functions of a TMS:
• Planning and optimizing of terrestrial transport rounds
• Transportation mode and carrier selection
• Management of air and maritime transport
• Real time vehicles tracking
• Service quality control
• Vehicle Load and Route optimization
• Transport costs and scheme simulation
• Shipment batching of orders
• Cost control, KPI (Key performance indicators) re porting and statistics
o Typical KPIs include but not limited to:
1. % of On Time Pick Up or Delivery Performance relative to requested
2. Cost Per Metric - mile; km; Weight; Cube; Pallet

Key Benefits
Route Planning and Optimization
• Reduce Distribution Costs & Fleet Miles - Daily r outes are created using powerful
algorithms and street-level routing, in conjunction with your business constraints
• Increase Resource Utilization-Make better use of existing resources by delivering
more and driving less. The answer to increasing volume is not always to put more
vehicles on the road, but to make smart, efficient
• Make Sound Business Decisions -Understand how del ivery costs affect the
profitability of each customer by knowing the actual cost per stop
• Set Driver Standards - Creating route plans and gathering actual information allows
you to set performance standards and expectations-which can result in less overtime
and better driver performance
• Decrease Routing Time - Let your routers spend le ss time configuring routes and
more time assessing what-if scenarios to produce better, more efficient routes.

25
• Contingency Planning - Prepare for holiday or sea sonal spikes and other "what if"
scenarios
• Reports - Driver manifests, maps, directions, resource utilization, customer delivery
cost, actual versus projected by route and by stop, planned route summaries and many
more reports to help you consistently evaluate your success
Load Optimization
• Accurate and Quick Load Design for Multiple Route Types - Each type of route
requires different loading patterns. Determine (or assign) equipment to warehouse bays
with capacities, preferences or even empty bays for returned goods
• Multiple Loading Strategies - Different delivery operations require different
loading strategies. Our warehouse-friendly software allows for greater picking
efficiencies by grouping SKUs. Driver-friendly groups product by stop, minimizing the
number of bays a driver must visit at each stop
• Pre-Build Orders - Load orders to be picked, buil t and pre-staged throughout the
day, all while continuing to have them allocated to the correct route and truck during
the final loading pass
• Load Design to Reduce Product Breakage - Most bre akage occurs within the first
10 minutes of a route due to poor packing. Fleet Loader's leading loading algorithms
allow for proper mixing and stacking to reduce breakage
• Reports - Final load sheet, driver check-out, load validation and pick sheets provide
you with all of the detailed information you need

26
 CHAPTER 4
LITERATURE REVIEW

Today Consumers have higher expectations than ever before. They want products
to match these expectations. They also want accurate, up-to-date and useful information
about what they buy and above all they need Quality

According to the report of Sumit Kukreja, a management trainee from Amity

University, food and beverages are the one of the largest growing trade in FMCG sector
and ice-cream is the pathfinder of this trade. The continues grow in the demand of ice-
cream in India is showing the great opportunity in future.

According to the project work done by the management students Swati Kiran &
Kriti Tiwari of IMT Ghaziabaad on AMUL, the growth rate of dairy foods due to better
supply chain management practices and strong distribution network in India is steady but
is increasing in the future.

India is the largest milk producer in the world, yet only around 15 per cent of the
milk is processed. The organized liquid milk business is in its infancy and also has large
long-term growth potential.

27
 CHAPTER 5
REASEARCH METHODOLOGY

SAMPLING METHOD

Convenience sampling was used by the researcher because it is easy and cheap to collect
data. Moreover the population size was very large to cover so it was best to use
convenience sampling.

DATA COLLECTION

Both Primary as well as Secondary Research Method has been included for preparing this
final report.

PRIMARY SOURCE
· Observation
· Personal Interviews

OBSERVATIONS - It is the methods of nothing and recording information without asking

specific question from the respondents. The advantage of this method is that it is highly
effective to provide information asked for.

PERSONAL INTERVIEWS - In this method I asks the question from the performa in the
order questions are listed and record the replies.

SECONDARY SOURCE
· Google search engine.

· Other web links.

28
 CHAPTER 6
DATA A NALYSIS AND INTERPRETATIOON

1. How do you manage your supply chain?

Close partnership with suppliers
JIT supply
Outsourcing
Many suppliers
Holding safety sto ck
No. of Respondent
Close partnership with su ppliers 2
JIT supply 1
Outsourcing 3
Many suppliers 20
Holding safety stock 4

25

20

15
Axis Title

10

0
Close
pa rtnership Many Holding
JIT supply Outsourcing
with suppliers safety stock
suppliers
No. of Respondent 2 1 3 20 4

Out of 30 employe es of Dinshaw’s dairy food ltd maximum no. of employees

think that supply chain ma nagement of Dinshaw’s dairy food ltd is ma naged by many
suppliers.

29
 2. How successful do you think is your company in managing its supply chain in
general?
* Not successful a all
* Not successful
* Somewhat successful
* Successful
* Very successful
No. of respondent
Not successful 0
at all
Not successful 0
Somewhat 4
successful
Successful 20
Very successful 6

25

20
Axis Title

15

10

0
Not
Not Somewhat Very
successful at Successful
successful successful successful
all
No. of respond ent 0 0 4 20 6

Most of the employees think that Dinshaw’s dairy food ltd is managing Supply
Chain Management succe ssfully.

30
3. Does your company have a separate logistics department?
YES NO
No. of respondent
Yes 30
No 0

0%

Yes
No

100%

The company has a separate logistic department.

31
 4. Does your compan y have a clear logistics strategic plan?
YES NO
No. of respondent
Yes 28
No 2

7%

Yes
No

93%

Out of 30 employe es 28 think that Dinshaw’s dairy food ltd has a clear logistic
plan.

32
 5. What types of systems are currently in use in your company to support Supply
Chain Managemen t?
Subcontracting
3PL
Supply Chain Benchm arking
Vertical integration

No. of Respondent
Subcontracting 5
3PL 3
Supply Chain Benchmarking 19
Vertical integr ation 2

20
18
16
14
12
Axis Title

10
8
6
4
2
0
Supply Chain Vertical
Subcontracting 3PL
Benchma rking integration
No. of Respon dent 5 3 19 2

Out of 30 employee 19 thi nk that supply chain benchmarking supports supply chain
management of Dinshaw’ s dairy food ltd.

33
6. What types of systems do you plan to implement in the near future (within the
next 2 years)?

E-procurement
EDI
Outsourcing
Subcontracting
Plan strategically

No. of Respondent
E-procurement 13
EDI 7
Outsourcing 1
Subcontracting 4
Plan strategically 5

14
12
10
Axi Title

8
6
s

4
2
0
E- Subcontractin Plan
EDI Outsourcing
procurement g strategically
No. of Respon dent 13 7 1 4 5

Out of 30 employe es 13 employees think that in future there is need of

implementing e-procurement.

34
7. How satisfied are you with the current public policy regarding SCM and IT?
*Satisfied
*Very satisfied
*Same what satisfi
ed *Not satisfied
No. of respondent
Satisfied 20
Very satisfied 5
Same what satisfied 2
Not satisfied 1

25

20

15
Axis Title

10

0
Same what
Satisfied Very satisfied Not satisfied
satisfied
No. of respond ent 20 5 2 1

Out of 30 employe es of Dinshaw’s dairy foods ltd. 20 employe es are satisfied.

35
 8. Is supply chain ma nagement having all the address of the sub distributor’s
branches of the co mpany?
Yes No
No. of respondent
Yes 27
No 3

10%

Yes
No

90%

Out of 30 employe es 27 of Dinshaw’s dairy foods ltd. knows th e address of the

sub distributors.

36
 9. Rate the working s trategies of supply chain management department on the basis
of the current programs?
* Outstanding
* Excellent
* Good
* Average
No. of respondent
Outstanding 2
Excellent 8
Good 2
Average 18

20
18
16
14
12
Axis Title

10
8
6
4
2
0
Outstanding Excellent Good Average
No. of respond ent 2 8 2 18

Out of 30 employe es 18 employees think that the working strat egies of supply
chain management depart ment are average.

37
 10. Is the supply chain management department is having sufficien t transportation?
* Yes
* Not sufficient
No. of respondent
Yes 25
Not sufficient 5

17%

Ye s
N ot sufficient

83%

Out of 30 employe es 25 think that transportation is sufficient fo r Dinshaw’s

dairy foods ltd.

38
11. According to the current growth process of the organization, w hich of the
following needs much attention and progress to boost the produ ction?
* Operational activ ities
* Tactical activities
* Current programming strategies
No. of respondent
Operational activities 25
Tactical activities 3
Current program ming strategies 2

30

25

20
Axis Title

15

10

0 Current
Operational activities Tactical activities programming strategies
No. of respond ent 25 3 2

Out of 30 e mployees 25 think that there is a need to pay attention on

operational activiti es.

39
12. Choose the right option, where the supply chain department is facing problem in
taking care of the r aw material?
* During storage
* Packaging
* Testing of packaging
* Evaluation of defective raw material
No. of respondent
During storage 15
Packaging 5
Testing of packag ing 1
Evaluation of defective raw material 9

16
14
12
10
Axis Title

8
6
4
2
0
Evaluation of
During Testing of
Packaging defective raw
storage packaging
m aterial
No. of respondent 15 5 1 9

Out of 30 e mployees 15 employees think that supply chain management is

facing problem du ring storage.

40
13. How do you rate t he delivery activity of the department?
* Excellent
* Very effective
* Good
* Average
No. of
respondent
Excellent 3
Very effective 5
Good 13
Average 9

14

12

10
Axis Title

0
Excellent Very effective Good Average
No. of respond ent 3 5 13 9

Out of 30 employe es 13 employees says that delivery system is very good.

41
 14. Is there any case r ecorded by the supply chain department in w hich the production
department compl ained late delivery of raw materials?
* Yes
* No
No. of respondent
Yes 4
No 26

13%

Yes
No

87%

Out of 30 employe es 4 employees complained about the late delivery of raw

material.

42
 CHAPTER 7
CONCLUSION

According to the study done on the feedback of questionnaire, data interpretation and
analysis the results are as follows-
The result shows that the Dinshaw’s dairy foods ltd. practices supply chain with the
help of many suppliers. Meanwhile the company is managing its supply chain successfully.
The company has a separate logistics and dispatch department. Dinshaw’s dairy foods ltd
has a clear and sophisticated logistic plan.
Operational activities and supply chain management activities of the Dinshaw’s
dairy foods ltd are by the support of supply chain benchmarking. The company is planning
to implement and practice the e-procurement, EDI plan strategically in future.

Current supply chain management and IT activities of the company are going
flawless and in future there is scope for better supply chain and distribution network.
The current transportation and logistics management of the company is sufficient and is
flexible enough so as to change the current policies if any.
The study has shown us that there is some obstacles during handling and storage of
dairy products which creates hurdle in SCM therefore should be eradicated.

43
 LIMITATIONS OF THE STUDY

· This study throws light on supply chain management process commenced at the
Dinshaw’s dairy foods ltd. Butibori MIDC Nagpur.
· The SCM studied in this report focuses on the dairy industry of Nagpur and it may
differ from firm to firm.
· The disadvantage of study SCM is investment of time, money and resources
needed to implement and overlook supply chain.
· Dinshaw`s ice cream has no homepage.
· Convenience sampling used here has its own limitations.
· There have been some inaccuracies due to non – coop erative and rude behavior of
the respondents.

44
 CHAPTER 8
SUGGESTIONS

· The company should start a home delivery where a particular household will order
full range of products required by it over a period of time. For this the company
could provide a deliveryman with cycle to reach the different houses.
· In order to motivate the channel members it is also very essential for the company
to increase the distributors for the hard selling items e.g. Dinshaw’s dahi (curd)
where it faces competition from Haldiram & Amul.
· Dinshaw’s should go in for exclusive outlets in at least all the shopping malls
coming up these days and any location where footfalls are large in number. The
advantages of this channel will be:
i. Full range display
ii. Convenience for distributors.
iii. Easier to access new customers.
iv. Easy to push impulse purchase products
v. Brand building will be facilitated
· In order to remain sensitive to market demand, it is essential for the company to
have additional procurement options ready that will help company to cope up
with the problem of less supply or shortage of raw milk.
· In order to practice a better supply chain management Dinshaw’s should make use
of updated/upgraded/latest ERP packages like MFG PRO
· Distribution strategies.

There are two main distribution strategies, which Dinshaw’s has very effectively
used.

1. In first strategy include incentives like free deep freezers, discounts on bulk
purchases.lr

45
2. Advertising campaign that reminds and persuades customers to buy ice cream
supports 2nd strategy,

Which is facilitated by price offs, which are frequently offered by the company.

· Route planning and optimization

· Load optimization
· For the dairies to remain competitive, they need to diversify their products
through value addition by using simple and cost-effective methods of
processing milk. Consideration should be given to processing of storable
products such as ghee and cheese as these are processed and successfully
supplied and distributed by dairies in other areas of India. The dairies need to
establish strategically positioned milk collection centers with cold storage
facilities to increase the quantity of milk they handle.

46
 ANNEXURE 1
BIBLOGRAPHY
Books -
rd
· James Evans, Supply chain management, Tata McGraw hills 3 edition p.n. 405
to 450
· Alberta Russel,Supply chain management, Wiley publication, 1st edition p.n. 1 to
50.
th
· John T. Mentzer ,Supply chain management Tata McGraw hills 4 edition p.n.
65 to 90
· Harland ,C.M.(1996) Supply Chain Management, Purchasing & Supply Chain
Management, Logistics, Vertical Integration, Material Management & Supply
Chain Dynamics. Excel books, p.n. 354 to 370.
· Operations management along with supply chain management by Russell and
Taylor.
· Upendra Kachru, Exploring the supply chain theory and practices, Tata McGraw
hills,p.n.210 to 250.

Websites-
· www.wikipedia .org
· En.wikipedia.com.au/glossary.asp
· http://www.scribed.com
· http://www.google.com

47
 ANNEXURE 2
QUESTIONNAIRE
Name of Employee : ……………………………………………………………….

Name of Company :……………………………………………………………….

Address :……………………………………………………………….

……………………………………………………………….

Country :………………… Tel.: ……………………….

Contact Person :……………………………………

Position in company :… …………………………………

E-Mail :……………………………………

Sector Types : Manufacturing Service Both

Industry : Food Automotive Other (define)
No of Employees : Turnover 2010 :

1.How do you manage your supply chain?

Close partnership with suppliers
JIT supply
Outsourcing
Many suppliers
Holding safety stock
2. How successful do you think is your company in managing its supply chain in general?
* Not successful at all
* Not successful
* Somewhat successful
* Successful
* Very successful
3. Does your company have a separate logistics department?

4. Does your company have a clear logistics strategic plan?

YES NO

48
5.What types of systems are currently in use in your company to support Supply Chain
Management?
Subcontracting
3PL
Supply Chain Benchmarking
Vertical integration
6. What types of systems do you plan to implement in the near future (within the next 2
years)?

7. How satisfied are you with the current public policy regarding SCM and IT?
*Satisfied
*Very satisfied
*Same what satisfied
Not satisfied
8. Is supply chain management having all the address of the developer branches of the
company?

9. Rate the working strategies of supply chain management department on the basis of the
current programs?
* Outstanding
* Excellent
* Good
* Average
10. Is the supply chain management department is having sufficient transportation?
* Yes
* Not sufficient

49
11. According to the current growth process of the organization, which of the following
needs much attention and progress to boost the production?
* Operational activities
* Tactical activities
* Current programming strategies

12. Choose the right option, where the supply chain department is facing problem in
taking care of the raw material?
* During storage
* Packaging
* Testing of packaging
* Evaluation of defective raw material
13. How do you rate the delivery activity of the department?
* Excellent
* Very effective
* Good
* Average
14. Is there any case recorded by the supply chain department in which the production
department complained late delivery of raw materials?
* Yes
* No

50