A Summer Internship Project Report

On

Industrial Customer profitability & Business

analysis
In the partial fulfillment of the Degree of
Master in Management Studies
Under the University of Mumbai
By

Mr. Sultan Miyan Moinuddind Qureshi

DIV: B, Roll No: 33

Specialization: FINANCE
Batch: 2014-16

BALA KRISHNA OGGU

General Manager Finance
Prof. Poonam Chaudhri
(Internal Project Guide)

DECLARATION

I am the students of first year MMS (2014-15) name Mr. Sultan Qureshi,
declare the completion of the project assigned to us for the Summer
Internship on the topic Industrial Customer profitability & Business
analysis as a per the course requirements, at Allana Institute of
Management Studies.
We also declare that the information revealed is true and original.

Date:

Signature of Student

Place:

Table of Contents
Chapter1: Introduction.....................................................................................................................4
Meaning of Industrial customer...................................................................................................4
Chapter2: Literature review.............................................................................................................6
Chapter3: Definition of Profitability...............................................................................................8
Chapter4: Introduction of Company..............................................................................................12
Our Industrial Customer.............................................................................................................13
Chapter5: How the forecast is received.........................................................................................19
Sauda: -......................................................................................................................................19
Features of Sauda.......................................................................................................................20
Purchase Order...........................................................................................................................21
Purposes..................................................................................................................................21
Submission.............................................................................................................................21
Order Processing....................................................................................................................21
Chapter6: After receiving forecast what Frigorifico Allana do.....................................................22
Material planning for Saudas/ orders received.........................................................................22
Production planning...................................................................................................................22
Dispatch plan..............................................................................................................................22
Product pricing Description Company vice...................................................................................23
Chapter7: Job Profiles..................................................................................................................27
Chapter8: Conclusion....................................................................................................................32
Bibliography..................................................................................................................................33

Chapter1: Introduction
Meaning of Industrial customer
Who are called industrial customers? An industrial consumer is an entity that purchases products
with the intent of using those products in the course of operating a business. This is different
from a private consumer, who purchases goods and services for their own personal use. The term
is also sometimes used to identify any customer that purchases industrial products, whether they
are intended for use by a business, a non-profit organization, or by an individual.
The industrial consumer may be associated with just about any type of industry. Customers in the
agricultural industry who purchase heavy farm equipment, or buy supplies needed to operate
commercial farms would fall into this category. In like manner, mining operations that purchase
equipment and supplies that are essential for the process of extracting minerals and other natural
resources from the earth would be considered industrial customers or consumers. Even a
business that is part of the transportation industry, such as a company that builds roads for
municipalities, will purchase materials used in the course of their business operation, and fit the
description of an industrial consumer.
An industrial consumer may purchase any type of good or service. A common example is
utilities, such as gas and electricity. Manufacturing plants require electricity to operate equipment
that in turn produces the goods that the factor owner sells. The energy company supplying the
power to the plant would consider the company that operates the factory to be an industrial
consumer.
It is not unusual for an industrial consumer to purchase goods and services in bulk. This strategy
helps the customer to obtain discounts that would not be possible with purchasing smaller
quantities from time to time. Volume purchasing agreements are created with industrial
consumers in mind, since they often provide a lower price per unit purchased in exchange for the
customer making a commitment to purchase a minimum number of units within a defined period
of time. A contract of this type can be used for all sorts of goods, as well as for
telecommunication services and similar products.

There is some difference of opinion over whether the term industrial consumer is actually
correct. For those who feel that a consumer is an individual and not a business or other organized
entity, the preference is to refer to those users as industrial customers. In spite of misgivings in
some quarters of the business world, many producers of the products purchased in bulk by
companies and other entities refer to their clientele as industrial consumers.

Chapter2: Literature review

The integrated structure of Customer Relationship Management

Chih-Hung Tsai, PhD: Kalakota and Robinson considered that the appropriate CRM
structure could be realized through three aspects: taking customers from other firms, enhancing
customer from other firms, and maintaining the current customer base. Different management
functions are needed to achieve the integrated CRM structure. By developing relationships
between the business and customers, CRM could be separated into taking customers, serving
customers, and customer analysis. Business could use customer profiles effectively to provide
real-time, excellent customer service. This is a beginning in developing the next customer
through analyzing the customers needs. To realize the four core relations at the center, CRM
makes cycling the customer relation process through customer development and data feedback. It
is the final target to make customer satisfied and creating profits in different functional
collocation of customer relation. However, we can establish an integrated CRM structure
involving three topics: Core Relations, Customer Relations, and Information Technology, by
centralizing customer analysis.
Getz, Blattberg & Thomas, 2001: What differentiates companies in todays hypercompetitive and demand-driven markets is their ability to address their customers preferences
and priorities. With increased competition, firms are realizing the importance of loyal customers
and adopting strategies to create and sustain a loyal customer base.

(Getz, Blattberg &

Thomas, 2001).

Reichhelds (1996): The main objective of the customer relationship management (CRM)
approach is to increase the life time duration of customers because of the underlying assumptions
that long-term customers are more profitable. Reichhelds (1996) study was one of the first to
empirically document the relationship between lifetime and profitability. He reported a
significant increase in profits from small increases in customer retention rates. For example, he
showed that as little as a 5% increase in retention had a significant impact on the net present
value of the firm ranging from 95% in the case of advertising agencies to 35% in computer
software industry.
6

Vijayakumar (1998)9 has examined the determinants of corporate size, growth and profitability the Indian experience. To meet the objectives of the study, Indian public sector industries were
selected. The date relating to size, growth and profitability were collected from their annual
reports published by the Bureau of Public Enterprises (BPE), Government of India. The study
covers the period from 1980-81 to 1995-96. The technique of average, correlation and linear and
linear and multiple regression analysis has been used in this study. Inter - industry analysis
reveals that the growth is positively and significantly associated with the size in all the industry
groups except textiles.

VishnuKanta Purohit (1998)10 in Profitability in Indian Industries: An analysis of firm

size and profitability examined the relation between size and profitability in Indian industries.
The study highlights the following two common conclusions. Firstly, though the average
profitability of firms does not seem to vary significantly with their size and the variability of
profit rates declines with size. Secondly, the average growth rates of firms do not seem to vary
significantly with their size but the variability of growth rates only. The study further explores
the factors that determine profitability. Besides the size, the model also tests for the impact of age
of the firm and growth in sales on profitability at both micro and macro levels. The study
concludes that the selected industries and firms have made efforts to increase profitability
through various means including increase in size through diversification and moving into higher
technology.

Chapter3: Definition of Profitability

Profitability is the ability of a business to earn a profit. A profit is what is left of the revenue a
business generates after it pays all expenses directly related to the generation of the revenue,
such as producing a product, and other expenses related to the conduct of the business' activities.
The Five Myths of Customer Profitability

Scott Benfield

The subject of customer profitability has been in distribution knowledge circles for a quarter of a
century. Starting with Activity Costing in the early 1980s, distribution consultants were quick to
pick up the idea of allocating operating expenses to customers to determine their individual
profitability.
The idea of customer profitability has spawned numerous articles and books for distributors over
the years. The basis of the knowledge, that customers can be evaluated on their unique
profitability and action can be taken to make them more profitable, is logical in thought and
reasonable in practice. Distribution is an aggressive step-cost business where operating costs, or
the popular moniker "costs to serve," step up with sales volume of the customer. Traditional
financial accounting does little to help distributors understand these costs and there needs to be
some type of allocation methodology to help distributors understand where the profit comes
from. Recently, there has been a resurgence of customer profitability literature and efforts which
indicates the general interest in the subject and its potential in distribution companies.
After working with customer profitability and its antecedents of territory, branch and segment
profitability, we have seen fleeting success and spectacular failures in the subject area and have
gone through the history files to bring clients, readers and the curious our perspective on the
myths of customer profitability. We list them in the remainder of this article in no particular
order.

Myth 1: Negative profit customers can be made profitable Our work finds that some 130
percent of operating profits come from less than half of all customers. Making all customers
profitable would, conceivably, balloon profits and distributor owners and operators could afford
two country club memberships and two vacation homes. The problem is that making all negative
profit customers profitable is a Pollyanna. Why? First, some customers are hopelessly negative
profit including those that buy small transactions and those who buy much of their mix from the
counter while being assigned to an outside salesperson. Beyond this, some segments of the
business simply take more in service support than they deliver in margin dollars. Our answer to
the idea that negative profit customers can be made positive is that the idea is mostly myth. The
best distributors can expect to do is make many of the negative profitable customers less
unprofitable.
Myth 2: Firing small customers makes financial sense and increases profits
No other myth of customer profitability is so well-established as the small customer fallacy.
There is, in distribution circles, the story of the distributor who put a bucket of $20 bills on the
counter with the sign to small customers "Take one and never return." The only sure things that
one can say about small customers is that they are small, seldom will turn into large customers
and are, generally, less price sensitive than other customer groups. The problem in labeling them
as unprofitable depends largely on how they buy. If an over-the-counter transaction costs $30 and
the small customer buys $50 transactions at a 35% margin, the customer is unprofitable.
However, if the small customer buys twice a year and the transactions are $500 each at a 20%
margin, they are profitable. There is very little correlation between customer size and
profitability at the operating profit level. In aggregate, small customers are often unprofitable but
blindly aggregating customers is only good if one's markets are un-segmented and the segment
method starts with customer size in revenues. As a long-term marketing strategy, assuming all
small customers are negative profit is a losing proposition.
Myth 3: Salespeople, armed with customer profitability statistics, can make customers
profitable and operating profit will improve several years back, a book on baseball
called Money ball detailed the use of statistics and higher math to change the landscape of
competitive baseball. For example, the long trusted metric of base running speed was dropped
and metrics such as on-base-percentage were adopted. One experiment, during the early days of
9

the knowledge development, was to give the players the new statistics and knowledge in hopes
that they would make the game better. The result was an unimpressive effort by players to use
the new knowledge. Managers found it was better to change the batting line-up than try to
educate players on the new knowledge.
A similar effect applies to sellers when driving customer profitability. Arming sellers with a
plethora of accounts, and their unique profitability statistics, with instructions to change the
profit picture, means little. Telling them to increase order size or raise pricing can be disastrous.
Why? What if the seller increases the account size by selling more non-stock products which are,
traditionally, money losers? What if the seller raises prices on commodity items and the account
flees? Before instructing sellers what to do, management should have a plan and logic in place
before getting sellers excited. Pricing should be planned and parameters, rules and regulations
given to sellers before they raise price. Services should be defined for segments, otherwise
sellers may give away, take away, or modify services without proper knowledge of the
downstream implications. Sellers can be effective change agents but management must have
strategies and tactics well-defined and the boundaries understood before sellers are engaged.
Giving sellers a bunch of numbers and saying "go get 'em" is nave and generally turns out worse
than not doing anything at all.
Myth 4: All customer profitability models are the same: The new customer profitability
models run the gamut. In our judgment, some are sound and some are misleading. The creator of
Activity Costing, Robert Kaplan of the Harvard Business School, recanted much of Activity
Costing in a 2006 release of a working paper on the subject. Kaplan advised that new approaches
should have one baseline logic instead of many drivers of activities. Kaplan uses time as the
baseline logic while we use transactions. Some models, currently available, use numerous drivers
including number of purchase orders, number of payments, number of shipments, customer
hassle factors, number of sales calls, number of receiving lines, number of counter visits, etc.
The problem with numerous drivers is two-fold. They make it near impossible to write coherent
algorithms (formulas) that relate costs to the customer and they drive complexity and upkeep
cost to the stratosphere. If your customer profitability model service provider uses numerous
drivers, they probably don't adhere to one baseline logic, and the model has the problems found
in the early activity costing models.
10

Secondly, we argue against dividing fixed costs over cost drivers. Dividing fixed costs over
volume has inherent flaws, including overburdening customers with costs and causing the firm
not to take orders that contribute to fixed costs. We don't consider fixed costs in our customer
profitability. Why? Because they are largely not influenced by customer volume, except in the
very long run, and hence they are not all that important to strategies forthcoming from the
customer analyses.
Our advice for evaluating new-age customer profitability models is simple. Does the model have
one primary baseline logic and does the model keep fixed costs out of the equation? If the
answer to these questions is no, we consider the model retrograde and repeating the same
mistakes of activity costing of yesteryear.
Myth 5: Changing the sales compensation will positively change customer profitability
having a significant part of compensation on margin dollars (20% or more) typically clashes with
maximizing customer profitability. The issue is that margin dollars don't mean all that much
unless service costs are allocated to customers, and service costs can easily make a high margin
dollar customer profit negative. Simply changing sales compensation, however, to reward sellers
on customer profitability is potentially dangerous. First, sellers without proper training and
systems fall victim to Myth No. 3. Secondly, negative profit customers can, depending on the
time period, help float the boat. Customer profitability looks at the long run while period
accounting looks at the short term. If sellers get rid of too many profit negative accounts, in the
short term, the company may not have enough margin dollars to pay bills in the next accounting
period.
Finally, sales compensation as a strategic change option is way overdone. Strategic changes most
often come from executives who have the power and scope to drive them. Mixing up sales
compensation has been tried, in one form or another, for many years and the results, on the
whole, are unimpressive. Changing compensation may make the troops feel good, but don't
expect a tremendous pop in earnings after the new compensation takes hold.
These myths still pervade much of the field of customer profitability. They should not
destroy one's desire to engage the field but they should help with much disinformation or slanted
information proffered by "experts.
11

Chapter4: Introduction of Company

Allanasons. India's largest exporter of processed food products and agro commodities. The
Company has been designated as the Five Star Trading House by the Government of India. We
are the World's Largest Producer and Exporter of Frozen Halal Boneless Buffalo Meat!
But, that's not all. Allanasons is also India's single largest exporter of frozen meat,
processed/frozen fruit and vegetable products.
India's Largest Exporter of Frozen Halal Buffalo Meat, Coffee, Fruit Concentrates and Purees...
What's more, Allanasons is India's largest exporter of coffee as also leading exporter of cereals
and frozen marine products.The Group has also set up plants for processing, preserving and
freezing of Marine Products, which are approved in accordance with stringent quality standards
for export to Europe. The Group has made substantial investments in creating world-class
integrated food processing complexes. Facilities, which have been certified for quality and
product safety systems under ISO 9001:2000 and HACCP. And ISO 14001 (Environment
Management System) too !

12

Our Industrial Customer

Anil Chemaux

Bake Best Foods

Bakers Circle

Chipita India Holding Pvt Ltd

City max hotels india private ltd

Cold ex Logistic Pvt Ltd

Dabon International

Dabur India Ltd

Delicia Foods / Monginis Foods

Devki Foods

Goldsmith Food

ITC

Jayelbee Foods Processors Pvt ltd

Mad Over Donuts

Morde Food Pvt Ltd

Parle Products

Parle Biscuits

Pepsi Co

Sankhla Foods

Shiv Trading Co

Shree Anand agro oil

Shree Ganesh Ent

Tropilite Foods Ltd

Zydus Wellness Ltd

We are giving the brief details of our few major industrial customer like.
1)
2)
3)
4)

Britannia Pvt Ltd

Mad over donuts
Parle Biscuits.
Dabur Indian Pvt Ltd.

13

Celebrate Life
Type

Public company (NSE, BSE)

Industry

FMCG, Health Care

Founded

1884

Founder

Dr. S K Burman

Headquarters

Dabur Tower, Kaushambi, Sahibabad, Ghaziabad - 201010 (UP), India

Area served

Worldwide

Key people

DrAnandBurman
Chairman
Mr. AmitBurman
Vice-chairman
Mr. Sunil Duggal
CEO

Products

DaburAmla, DaburChyawanprash, Vatika, Dabur Honey, Fem, Hajmola&RealGOO

Revenue

61.46 billion (US$980 million) (2012-2013)[2]

Net income

14.75 billion (US$230 million) (2008-09)

Total assets

15.59 billion (US$250 million) (2008-09)

Number of employees 6,154 (2012-13)[3]

Subsidiaries

Fem Care Pharma

newu
Pune Pistons

Website

Dabur.com

14

Type

Public

Industry

Food processing

Founded

1892

Headquarters

Bangalore, Karnataka, India

Number of
locations

300 stores (2000)

Area served

India

Key people

NusliWadia (Chairman)
Varun Berry (MD)

Products

Bakery products, including biscuits, bread, cakes and rusk,

and dairy products, including milk, butter, cheese, ghee and
dahi

Revenue

46.70 billion (US$740 million) (2011)

Profit

1.34 billion (US$21 million) (2011)

Parent

Wadia Group

Website

www.britannia.co.in

Britannia has sub-parties under it, which produces on behalf of Britannia in different location.

Sobisco bakers

Chindwara (MP)

15

Uttam foods

Khopoli

Eastern Agro

Khopoli

Hari Nagar

Bhanadup

16

Parle Products

Parle Products is an Indian private limited company. It owns the famous biscuit brand Parle-G.
As of 2012, it had a 35% dominant share of the Indian biscuit market.

Parle Products Company was founded in 1929 in British India. It was owned by the Chauhan
family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when India
became independent, the company launched an ad campaign, showcasing its Gluco biscuits as an
Indian alternative to the British biscuits.[2] The Parle brand became well known in India
following the success of products such as the Parle-G biscuits and the Thumps Up soft drink.
The original Parle Company was split into three separate companies, owned by the different
factions of the original Chauhan family.

Parle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G, Melody,
Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack) Parle Agro, led by
PrakashChauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as
FrootiandAppy) Parle Bisleri, led by Ramesh Chauhan. All three companies continue to use the
family trademark name Parle. The original Parle group was amicably segregated into three
non-competing businesses. But a dispute over the use of Parle brand arose, when Parle Agro
diversified into the confectionary business, thus becoming a competitor to Parle Products. In
February 2008, Parle Products sued Parle Agro for using the brand Parle
for competing confectionary products. Later, Parle Agro launched its confectionery products
under a new design which did not include the Parle brand name.In 2009, the Bombay High Court
ruled that Parle Agro can sell its confectionery brands under the brand name Parle or Parle
Confi on condition that it clearly specifies that its products belong to a separate company, which
has no relationship with Parle Products.

17

Brand

Biscuits Parle-G, KrackJack, Monaco, Kreams, Golden Arcs, Parle Marie, Milk Shakti, Parle
Hide &SeekBourbon, Parle Hide & Seek Fab, Top, Parle Gold Star.

Sweet confectionery Melody, Mango Bite, Poppins, 2 in 1 Eclairs, Mazelo, Kismi Toffee
Bar,London Derry.

Snacks Monaco Smart Chips, Parles Wafers, Fulltoss, Parle Namkeens Since they have been
entered at the food competition of Monde Selection in 1971, the brands have received
consistently gold and silver Quality Awards at the World Quality Selections.

Parle has its sub parties under, which they manufacture biscuits for parlein different
location.

Shree Sai Narayan

Parle biscuits Pvt ltd
Srujan foods
Kripashakti bakers
J P Biscuits
RPA foods
MB Industries
Patwari Bakers
Om shamji Foods
Bunty Foods
Shiv Shakti Bakers
Traymbkeshwar foods Pvt. Ltd.
M/s. Jugnu Foods.

18

Chapter5: How the forecast is received.

The forecast is depend on the company to company or party to party. Parties provide forecast
depending upon their requirement.

Forecast can be received in generally two formats.

1) Sauda
2) Purchase Order

Sauda: -

Initially party ask for the today rate for specific requirement 250 Metric ton etc. Depend on the
customer, then we take the today rate for particular that product which party wants the rate will
be taken from trading team they calculate the rate on daily basis with respect to the future
forecast. The rate which we get from trading team is only the cost of that particular product. we
have to add a margin and start negotiating with the customer.

Example: Parle wants 250Mt of Refine Palm Oil for month July August and September, so we will tell the
today price like Rs. 70.80 per Kg. then the party will start negotiating. If both the parties agree
on the same price then we can further proceed.

The process of dealing with the customer is same for all profit margins may be differed
according to the customer and Sauda validity also differed.

Note: - The Sauda can be made for a month, more than a moth and for a yearly basis also.

19

Features of Sauda.

1)
2)
3)
4)
5)
6)

Assumption base
Multiple Sauda.
Follow FIFO Method.
Secure the price
Easy to track.
It helps to Prepare purchase order

After receiving the forecast schedule is provided by the party, some details must be provided by
the party like Date of reaching of material at their plant location, Quantity Ex. 20MT, 50MT etc.
as per their requirement, Plant location address, which Material they want.

The Company Bunty foods Pvt which works under Parle and manufacture Parle G and its
location is in Ambernath (Mumbai).

Reaching Date

Product

Location

Quantity

15-July-2015
17-July-2015
20-July-2015
22-July-2015
25-July-2015
27-July-2015
29-July-2015

RPO
RPO
RPO
RPO
RPO
RPO
RPO

Ambernath
Ambernath
Ambernath
Ambernath
Ambernath
Ambernath
Ambernath

16Mt
20Mt
16Mt
16Mt
16Mt
16Mt
16Mt

Note: -Mt (Metric Ton)

Purchase Order
20

A purchase order is a legally binding document between a supplier and a buyer. It details the
items the buyer agrees to purchase at a certain price point. It also outlines the delivery date and
terms of payment for the buyer. Purchase order computer systems have made the purchasing
process more efficient and allow for better inventory and payment tracking.

Purposes
Purchase orders are typically used when a buyer wants to purchase supplies or inventory on
account. This means the supplier delivers or ships the purchased items prior to payment, with the
purchase order serving as its risk protection. Along with legal protection, purchase orders are
significant in both inventory management and payment tracking. Purchase orders help suppliers
compare ordered inventory to inventory shipped and on hand for accuracy. They also allow the
supplier to track when payments have been made on specific orders. Buyers hold copies of
orders they place to monitor timely receipt of the items.

Submission
The purchase order is prepared by the buyer, often through a purchasing department. This
process is typically done using electronic software systems, which allow for better tracking and
electronic submission of orders to the supplier. The purchase order, or PO, usually includes a PO
number, which is useful in matching shipments with purchases; a shipping date; billing address;
shipping address; and the request items, quantities and price. Software programs usually have
entry fields for each piece of critical data; the purchaser simply fills in the fields prior to
processing and sending the order.

Order Processing
Once the buyer submits the order, an in-progress purchase is created. The order's status remains
in-progress until the ordered items have been received by the buyer's warehouse. Once the
inventory is physically received, it is typically scanned into inventory and matched to the proper
purchase order. The purchase order is marked as processed or requiring payment. The buyer
completes its responsibility for the purchase when it remits payment. To ensure accurate credit
for payment, the payment should indicate the PO number or company account number.

Chapter6: After receiving forecast what Frigorifico Allana do.

21

Material planning for Saudas/ orders received

When we received the Sauda/ Forecast from party then we will import material as per
requirement the import should be done by proper planning so it reach on time at our production
plant (khopoli) without any delay.

Production planning
Production Team will consolidate all the forecast from all parties and will plan accordingly.
Required forecast Stock in Hand = Production + Buffer production.

Dispatch plan
As when the party required material at their plant location we plan dispatches accordingly. If
delivery require on 02-Aug-2015 the tanker required minimum 3 days to reach customer location
so we will dispatch tanker from our plan 3 days before, so it will comfortably.

Product pricing Description Company vice

22

Frigofrico Allana limited import CPO (Crude Palm oil) from IFFCO at floating Exchange rate
System. After adding all import charges like import duty, freight charges and refining cost,
company charge tax rate if party within Maharashtra then 5% VAT (Value Added Tax) and
company out of Maharashtra then CST tax rate will applicable.

Fixed Exchange Rate System:

In fixed exchange rate system, exchange rate is fixed by the central bank of the Country. In fixed
exchange rate system, the central bank stand ready to exchange local currency and foreign
currency at pre announced rate .Usually exchange rate is fixed in a Particular ratio with another
currency.

Floating exchange rate System

23

In this system the exchange rate of any two currencies is determine purely by market force
(demand and supply of foreign currencies as compared to home currency ).Central bank do not
intervene and do not try to maintain the exchange rate at a specific value or in a particular band.
Demand of foreign currency arises because of Import of services and goods, proposed
investment abroad and repatriation of benefit

Parle company
Britannia

Dabur india

Parle Company
Parle Company is one the major party of our company .Usually Parle order RPO
(Refine Palm oil) which is most expensive oil which our company gets from CPO
(Crude Palm oil) after refining.
Parle company order 3000 kg RPO(refine Palm oil) so we can calculate final
amount which party need to pay by simply multiplying the price which we get
through specific cost format which show the entire cost occur by company with
profit margin and finally add tax rate which goes into the government pocket.
3000 Kg * 402.17 Price + 5% Tax
Parle also order Olein Iv56 which is another refine oil from crude Palm oil. Major
thing of Iv56 is its cheaper than RPO because the refining cost is much higher.
There for the Calculation is same but pricing will change.

24

12000000kg * 47.17 Price + 5% Tax

In above example we can see that order increase as compare to RPO in Kgs
Dabur India
Daburindia is another major Party which deal for Olein IV 64 (super olein) .this
product also is refine from crude palm oil and its cheaper than RPO and Olein Iv
56.format for calculation of cost is same but price of Olein Iv 56will change
100000kg *50.28 Price + 5% Tax

Britannia

25

Company Majorly deal for Olein Oil for Frying (IV 60).this product also is refine
from crude palm oil and its cheaper than RPO,Olein Iv 56 and Olein IV 64 (super
olein).format for calculation of cost is same but price of Olein Iv 56 will change .

Products

RPO

Olein Iv 56

Daburindia

Parle A/c

(BaddiUttraKhand)

Britannia
(Chindwara)

59434200
(W.N 2)
5279400
(W.N 3)
27049750

Olein IV 64 (super olein)

(W.N 4)
81553500

Olein Oil for Frying (IV 60)

(W.N 5)

Chapter7: Job Profiles

26

Job Profile 1:

Oracle Application: Frigofrrico Allana Limited use oracle software for entering day to day
transaction. These applications develop according to the need of our company which have
different segment and every segment have category which store the information and supply
according to our demand.
Sales Agreement: Sales Agreement is initial step of preparing invoice which divided into Six
different categories which explains below in detail.
Main
Shipping
Accounting
Pricing
Fulfilment
Acceptance
But manually we need to fill only four of them

27

Pricing

Accepta
nce

Shipping

Main

Main:
In this first step we need to put various information like Customer name, sales person name
activation date, expiry date of Sauda and Sales agreement type etc.
Customer name: Customer name is very important for maintaining Sauda because if party have
pending Sauda then we can take directly from last Sauda through Sales Agreement number.
Customer number: Customer number generated by oracle application automatically
Customer PO: Customer PO means customer purchase order date here we put the date of
preparing Invoice
Salesperson Name: Putting the name of salesperson that brings this customer for the company
there are different sales person at different location.
Activation Date: Activation date is very important from point of further pricing step we receive
price of different product from trading team who upload the price directly on system. Before we
put activation date we need to confirm whether trading team uploaded or not. If not then we have
to put activation date when price uploaded it may be yesterday or day before yesterday.
Expiration date: Our Company provide 25 days limit to complete the transaction.

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Shipping:
Shipping is the Second step of new sauda booking where we need to put different information
related to location mode of transport and warehouse.
Ship to location: Ship to location is very important because we to put exact location where
customer need material some time same party require material at different location so we always
need to check requirement of location.

Warehouse: If party require material within Maharashtra we supply from Khopoli factory for that
for Khopoli we use key word F21 and that key word differ from location to location.
Freight Terms: Here we put whether party vehicle will come to factory or our company vehicle
will deliver the material.
Shipping Method: Our Company use road transportation to deliver the material.

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Pricing:
After entering the detail in shipping next step is enter detail In pricing .in pricing we need to
enter one item only that is price list rest of item no need to enter.
Price List: here we enter the detail in code we enter %% in price list then system show various
price list according to the location then we have to select as per requirement.

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Acceptance:
After entering price next step is Acceptance. Acceptance is like contract signature require by the
system. Acceptance divided into two parts one is customer and second is Supplier.
Customer: In customer we need to enter the name of customer and date when customer ready to
proceed further with acceptance of all conditions Signature date.
Supplier: In supplier same thing will come we need to enter sales person name and date of
signature.

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Conclusion
Industrial Customer is becoming major source of Profit. Every Company trying to maintain
Good Customer Relationship for long term benefit. In oil Industry, Industrial customer is major
business.The average growth rates of firms do not seem to vary significantly with their size but
the variability of growth rates only. The study further explores the factors that determine
profitability. Besides the size, the model also tests for the impact of age of the firm and growth in
sales on profitability at both micro and macro levels. The study concludes that the selected
industries and firms have made efforts to increase profitability through various means including
increase in size through diversification and moving into higher technology.
Frigfrico Allana ldt becoming more profitable through Industrial Customer. Maintenance of
all Record of all industrial customer in Oracle Software which include various important
segment for all kind of transaction and it helps to maintain secrecy.

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Bibliography
https://en.wikipedia.org/wiki/Parle_Products
http://www.wisegeek.com/what-is-an-industrial-consumer.htm
http://smallbusiness.chron.com/purchase-order-work-40933.html
http://study.com/academy/lesson/what-is-profitability-definition-analysis-quiz.html

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