CUSTOMER FOCUS ON SUPPLY CHAIN MANAGEMENT IN PONLAIT, PUDUCHERRY

SUMMER PROJECT REPORT Submitted by R.NITHYAN REGISTER NO: 27348326 Under the Guidance of Mrs. R.HEMALATHA, M.B.A., Faculty, Department of Management Studies
in partial fullfilment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE PONDICHERRY UNIVERSITY PUDUCHERRY

SEPTEMBER- 2007

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
MADAGADIPET, PUDUCHERRY

DEPARTMENT OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE

This to certify that the project work entitled “CUSTOMER FOCUS ON SUPPLY CHAIN MANAGEMENT” is a bonafide work done by R.NITHYAN [REGISTER NO:

27348326] in partial fulfilment of the requirement for the award of Master of Business
Administration by Pondicherry University during the academic year 2007 – 2008.

GUIDE

HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER

ACKNOWLEDGEMENT

First and foremost, I thank the God for his substantial blessing and mercy at all stages in the completion of the project. I take this opportunity to express my deep sense of gratitude to Shri. M . DHANASEKARAN, Managing

Shri. N. KESAVAN, Founder Chairman, wishes for this project. I express my immense

Director and Shri. S .V . SUGUMARAN, Vice-Chairman of our college for their good

gratitude

to

our

Principal

Dr.V.S.K.VENKATACHALAPATHY for his support and encouragement for the completion of my project. I extend the immense gratitude to the Head of the Department Mr. S.JAYAKUMAR for his motivation, inspiration, and encouragement for the completion for my project. The valuable and unflinching requital support in this Endeavor

Mr.D.SARAVANAN my internal guide, Department of Management Studies whose assistance was immeasurable to the completion of this project. I am sincerely thankful to Mr.P. GUNASEKARAN, Deputy Marketing Manager, who is my External Guide. I would also like to thank all the staff of the organization for helping me directly and indirectly to conclude this work. Last, but not the least, my heart felt gratitude to my parents, relatives and my friends for their constant encouragement, support, help and valuable advice to make this project a success.

ABSTRACT

The Project has been done in The Pondicherry Co-operative Milk Producer Union Ltd. The title of the project is “Customer Focus on Supply Chain Management”. The study starts with an Company’s profile and also the need for study, review of literature and objectives are set out for the study. Research methodology, Data analysis & Interpretation, Findings and Suggestions of the study follow. One of the main areas of the project is the analysis part, where the data are analyzed & interpreted, to find out the Supplier Performance. Some of the tools used in Supply Chain analysis are regarding to:  Percentage Method. And then conclusions, limitations & scope for further study were discussed.

CONTENTS
CHAPTER LIST OF TABLES LIST OF CHARTS INTRODUCTION I PROFILE OF THE COMPANY NEED FOR THE STUDY II III IV V REVIEW OF LITERATURE OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY, SUGGESTION AND RECOMMENDATIONS VII CONCLUSION LIMITATIONS OF THE STUDY SCOPE FOR THE FUTHER STUDY QUESTIONNAIRE BIBILIOGRAPHY 1 2 9 10 21 22 24 39 41 42 TITLES PAGE NO.

VI

VIII

43 44 45 47

LIST OF TABLES

1.1.1.1.1.1.1.1.11 5.1.10 5.6 5.1.1.12 5.1.1 5.8 5.1.1.1 NAME OF THE CHART SEX OF THE RESPONDENTS PAGE NO 24 .4 5.1.TABLE NO.13 5.9 5.7 5.14 5.1.3 5.5 5. 5.2 5. 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 LIST OF CHARTS CHART NO. 5.15 NAME OF THE TABLE SEX OF THE RESPONDENTS OCCUPATION OF THE RESPONDENTS CONSUME PONLAIT MILK HOW FREQUENT DO CONSUME MILK CONSUMPTION PURCHASE MILK MADE FROM LEADING SUPPLIER IN MILK PRICE OF PRODUCT OTHER THAN MILK WHICH PRODUCT DO YOU RESPONDENTS PREFERENCE PONLAIT IS AVAILABLE SUFFICENT IN MARKET SATIFACTION LEVEL PREFERENCE OTHER THAN THE PONLAIT DEFECTS IN PONLAIT MILK ANALYSIS BY CORRELATION PAGE NO.

7 5.5 5.11 5.1.9 5.14 OCCUPATION OF THE RESPONDENTS CONSUME PONLAIT MILK HOW FREQUENT DO CONSUME MILK CONSUMPTION PURCHASE MILK MADE FROM LEADING SUPPLIER IN MILK PRICE OF PRODUCT OTHER THAN MILK WHICH PRODUCT DO YOU RESPONDENTS PREFERENCE PONLAIT IS AVAILABLE SUFFICENT IN MARKET SATIFACTION LEVEL PREFERENCE OTHER THAN THE PONLAIT DEFECTS IN PONLAIT MILK 25 26 27 28 29 30 31 32 33 34 35 36 37 CHAPTER.1.13 5.1.1.12 5.4 5.3 5.1.I INTRODUCTION SUPPLY CHAIN MANAGEMENT .1.1.1.1.10 5.5.1.2 5.1.8 5.1.1.6 5.

Started in a tiny shed its primary objective and focus was to supply milk to the urban consumers  History tells us that Ponlait came to existence as Pondicherry Milk Supply Society . intermediaries. Supply Chain Management encompasses the planning and management of all activities involved in sourcing. implementing. it also includes coordination and collaboration with channel partners.Supply chain management (SCM) is the process of planning. third-party service providers. work-in-process inventory. Importantly. In essence. procurement. and controlling the operations of the supply chain as efficiently as possible. and finished goods from point-of-origin to point-of-consumption. and customers.1. 1. conversion. Supply Chain Management spans all movement and storage of raw materials.1 ORIGIN AND GROWTH registered as 1st Co-operative Society in the Union Territory of Pondicherry on 07-02-1955. Supply Chain Management integrates supply and demand management within and across companies. and logistics management activities.1 PROFILE OF THE COMPANY 1. which can be suppliers.

with effect from 30. promoted and popularized by the NDDB for the entire Dairy Co-operative of the Nation.operative Milk Producers’ Union has also taken up the world’s largest Dairy Expansion Programme. the “Operation Flood” during the year 1982-1985. To keep pace with the milk production.1. As time passed the supply society has diversified its activity from consumer to producers. All the milk primary co-operative societies were converted to Anand pattern societies. 1.  Ponlait has entered the MNEMONIC club conceived.03.1971. implemented. With the launching of Operation flood Programme the Dairy Plant was expanded to 50.2 ACTIVITES OF DIFFERENT UNITS OF THE MILK UNION A.  With the success of the Amul. the Milk Union has also set up a Dairy Plant with 10.000 ltrs capacity per day. MILK PROCURMENT AND INPUT WING .04. by way of Milk Purchase. and concentrated in increasing the milk production by giving various assistance / incentives to the milk-producing farmers.  During the year 1973 the supply society was converted to co-operative milk producers’ Union with objective of shifting its focus on the milk producing community and its welfare.  Thus Ponlait was committed to improve the economic and social uplift of the rural farming / milk producing community and supplying the urban consumers with good quality milk  The only institution in Pondicherry is extending more than a crore every month to rural economy in cash for the benefit of farming community.000 ltrs capacity for processing on 12. The Pondicherry Co.2002. the National Dairy Development Board has programmed to replicate the Anand pattern (collecting the quality milk from the members and payment of remunerative price in cash regularly and providing milk production enhancement) all over the nation.  The Union started procuring milk from the village producers on quality basis from 1970 onwards.

 Besides the main activity.000 liters of standardised milk to school children in the morning under Sri Rajiv Gandhi School Children Break fast scheme. green fodder and artificial insemination. .500 liters if milk supplying to the students both in the morning and evening. Present demand is 62.000 ltrs of milk handled in peak. the Dairy is supplying 15.  To achieve this objective.  The Primary responsibility of procurement and input section is to procure clean and quality milk from the village cattle owners and carryout milk production enhancement services. However with prudent technical manpower and top managements support an average of 80.  3 varieties of milk namely Tonned Milk.  From the August 2002. Besides at present the union is 28. B. The daily consumer demand is met fully.000 ltrs of milk is handled per day and 93.000 liters per day. 1st of its kind in the nation organized by the government of pondicherry. Standardised Milk & Premium Milk are produced as per the consumer requirements.  There are 34798 Cattle owners who became members in the Dairy Co-operative Societies at villages and supplying milk to Ponlait. Ponlait is operating in the Pondicherry Region with 99 affiliated functional Dairy Co-operative Societies.000 to 65.000 ltrs per day. The Evening milk supply effected from 20-10-2005 as desired by the government of pondicherry. the procurement & Input wing is conducting various programmes like Clean Milk Production and Quality Milk Procurement at Dairy Co-operative Societies. the milk-supplying members milch animals are also providing with cattle feed.  Milk Supplying members are paid fortnightly in cash with remunerative milk price and inputs in kind. MILK PROCESSING  The present handling capacity of the Dairy plant is 50.

(SNF. The Ponlait ghee and khoa are much sought after products in the pondicherry town.0% Fat 8.Solids Not Fat)  Day in and Day out maintaining the quality of milk receives the top priority. the processed milk is sampled at every point of storage during the process and proper care is taken to maintain quality standards. proper care is taken to maintain quality of the milk right from the point of production to the point of consumption.0% Fat 9.0% SNF. D.5% SNF and the Premium milk 5. C.  The Dairy is also producing Paneer and Curd as per the requirement of the consumer as and when needed. the Dairy is equipped to produce 15 MTS of ghee and 1500 kgs of Khoa (milk peda) monthly. Besides milk processing and grading. Presently the milk is dispatched to the market at 5 degree centigrade in three varieties viz Toned milk 3.  The milk tested for the quality at society level reaches the Dairy Plant.5% Fat 8. The raw milk is tested organoleptically at the Dairy reception dock for its quality and then the individual society sample are tested for its fat content and other microbial standards.  Finally the different varieties of milk are graded and kept ready for packing to the consumers.  Apart form this. the milk poured by the individual member producer are tested at the primary society. The pouched milk samples are randomly taken and tested for its shelf life after dispatch of the consumers.  The Dairy is producing 1000-1500 pockets of flavoured milk and 500-1000 of butter milk every day and sells in pondicherry town. Standardised milk 4.5% SNF. MARKETING . QUALITY ASSURANCE BY MAKING PROPER MILK TESTING IN LABORATORY AT DAIRY  Since the milk is highly perishable commodity. At the village level.

Milk is made available to the urban consumers. Though there are many private players in the market. E. .as provided by the Government of Pondicherry to each bag containing 50 Kgs of Feed out of the total cost of Rs.  Batch wise the Cattle feed is being tested its quality regularly. Pondicherry-9  Compounded Cattle Feed is produced with cost effective ingredients and supplied to the members through Dairy Co-operative Societies on non profit motive. Ponlait is the major market shareholder.000 ltrs per day and the sales is in the uptrend.  Ponlait is extending subsidy of Rs.per bag  The present monthly production and supply is 235 MTS.312/. The retail outlets are supplied with milk through a network 10 milk distribution routes daily in the morning and the evening. It is anticipated that the sales curve may touch its peak (60. under its brand name “Ponlait”.  Ponlait is the number one milk brand in the Pondicherry town. Dairy also. CATTLE FEED  Ponlait owns a Cattle Feed Plant of 5 MT per day capacity in Thattanchavady Industrial Estate.100 ltrs monthly average) during January 2006.  To cater the urban population. 24 hours a day through 5 such parlours. 180 retail outlets are operated by retail sales agents.100/. A market survey finding indicates that the present market share of Ponlait is around 52%. selling three different varieties of milk catering to the different segments of the market. The Pondicherry Co-operative Milk Producers’ Union is operating in the Pondicherry market. the Union is also running 9 milk parlours to sell milk and ilk products.  In addition Ponlait Cattle Feed is supplied to Neighbouring Villupuram Dist.  Besides.  The present average market throughput is 62.

Erode 3. 1.  Since the committee of management is dissolved.  As per the order of the High Court. Chennai. ADMINISTRATION  The Ponlait Administration is vested with the committee of management comprising 12 elected representatives from the Presidents of Dairy Co-operative Societies and a nominee from National Dairy Development Board.Members .1. Registrar of Co-operative Societies 2.3 MILESTONES OF THE COMPANY SL. NDDB.2002. State Director. 1.NO. Director. Pondicherry . Co-operative Department of Animal Husbandry and Managing Director of the Milk Union. AHD.Members  At present 173 permanent employees in various cadres are working in the Union.09.Chairman . the Administrator manned by a Deputy Registrar form the Co-operative Department is looking after in lieu of the Board of Management with effect from 06. F. The balanced compounded Cattle feed produced in the Ponlait Cattle Feed Plant is proved to be effective for animal health and quality milk production. MILESTONES YEARS . an Advisory Board with the following three members has been constituted by the RCS in order to guide the Administrator by making major policy decisions and other administrative matters.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 Registred as The Pondicherry Cooperative Milk Supply Society Ltd Foundation stone laid Dairy Plant Commissioned 10000 ltrs capacity Cattle feed Plant commissioned Registred as The Pondicherry Cooperative Milk Producers’ Union Ltd Artificial Insemination implemented Dairy Plant Expanded 10000 to 30000 ltrs capacity Urea molasses plant implemented Coop.000 ltrs Capacity Internet based Information System (iDIS) implemented Mnemonic symbol adopted Milk supply to School Children under (Rajiv Gandhi Breakfast Scheme) Inaugrated Sofy ice cream sales at Bus stand Parlour (Atchaya Thiruthai) 1955 1968 1971 1971 1973 1984 1987&1988 1991 1992 1996&1997 2000&2001 2002 2002 2005 1.4 COMPANY ORGANIZATION CHART MIS (O) DEO / Asst.1. Development Programme implemented Expansion of Dairy Plant to 50. .

2.Asst Supdt (Adm) Supt. Asst/Typist .Helpers D.Helper/AI Helpers Driver D./ Sr.Asst D.D. Assts D.Assts Sr. DA (Bact/chem) Senior Assts Supdt (Mktg) Supdt (Store/ Prodct/Tech ) Supdt (P&I) AM (BMC) DM (Accts) AM (QC) AM (CFU) AM (Mktg) DM (P&O) DM (P&I) Steno PA to MD Managing Director ADMINISTRATOR 1.Helpers Extn (Asst) Sr.Helpers Clerical Assts Cashier Sales Supervisor Tech.Helpers Driver Fodder Dev. NEED FOR STUDY Sr.

 To find the competitors and analyze the methods for competition marketing.  To know about how many people to get aware about PONLAIT.  How many people to consume PONLAIT in market  To get suggestion from public for further improvement  Why some people don’t prefer ponlait and reason for non consumption  Who is the main Customer and which satisfies them? CHAPTER-II .Customer focus on supply management (ponlait) is made for special purpose to improve the product and marketing function for consumer satisfaction.

. Cross docking. Supply chain management problems Supply chain management must address the following problems: Distribution Network Configuration: Number and location of suppliers. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. warehouses and customers. inventory and transportation etc.REVIEW OF LITERATURE SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the process of planning. it also includes coordination and collaboration with channel partners. Supply Chain Management spans all movement and storage of raw materials. forecasts. procurement. third-party service providers. Supply Chain Management integrates supply and demand management within and across companies. The definition one American professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing. conversion. With SCEM possible scenarios can be created and solutions can be planned. distribution centers. work-in-process inventory. In essence. Information: Integrate systems and processes through the supply chain to share valuable information. production facilities. third party logistics. including demand signals. Some experts distinguish Supply Chain Management and logistics. Importantly. implementing. Distribution Strategy: Centralized versus decentralized. and controlling the operations of the supply chain as efficiently as possible. intermediaries. pull or push strategies. and finished goods from point-of-origin to point-of-consumption. while others consider the terms to be interchangeable. which can be suppliers. Supply Chain Management is also a category of software products. direct shipment. and logistics management activities. and customers.

thus improving inventory visibility and improving inventory velocity. The flow is bi-directional. Activities/functions Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end-consumer. and operational levels of activities. Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain. SCOR is a supply chain management model promoted by the Supply Chain Management Council. they have reduced their ownership of raw materials sources and distribution channels. The effect has been to increase the number of companies involved in satisfying consumer demand.Inventory Management: Quantity and location of inventory including raw materials. The purpose of supply chain management is to improve trust and collaboration among supply chain partners. Supply chain execution is managing and coordinating the movement of materials. Supply chain activities can be grouped into strategic. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. work-in-process and finished goods. As corporations strive to focus on core competencies and become more flexible. Less control and more supply chain partners led to the creation of supply chain management concepts. while reducing management control of daily logistics operations. Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. information and funds across the supply chain. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). tactical. Strategic .

Product design coordination. Inventory decisions. location. locations. Sourcing planning. and contracting. and quality of inventory. Transportation strategy. Production decisions. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Demand planning and forecasting. Inbound operations. Outbound operations. location. direct shipping. so that new and existing products can be optimally integrated into the supply chain. including transportation from suppliers and receiving inventory. including all nodes in the supply chain. including all fulfillment activities and transportation to customers.Strategic network optimization. including frequency. Milestone payments Operational Daily production and distribution planning. load management Information Technology infrastructure. distribution centers and facilities. including the consumption of materials and flow of finished goods. to support supply chain operations. including quantity. Production scheduling for each manufacturing facility in the supply chain (minute by minute). distributors. including current inventory and forecast demand. creating communication channels for critical information and operational improvements such as cross docking. . scheduling. Strategic partnership with suppliers. and planning process definition. in collaboration with all suppliers. coordinating the demand forecast of all customers and sharing the forecast with all suppliers. including the number. including contracting. and third-party logistics. and size of warehouses. routes. Production operations. and customers. Where to make and what to make or buy decisions Align overall organizational strategy with supply strategy Tactical Sourcing contracts and other purchasing decisions.

globalization. outsourcing and information technology have enabled many organizations such as Dell and Hewlett Packard. strategic alliances and business partnerships were found to be significant success factors. 1990). there have been a few changes in business environment that have contributed to the development of supply chain networks. accounting for all constraints in the supply chain. However. and little is known about the coordination conditions and trade-offs that may exist among the players. This inter-organizational supply network can be acknowledged as a new form of organization. the choice of internal management control structure is known to impact local firm performance (Mintzberg. 1993). In Peter Drucker's (1998) management's new paradigms.Order promising. Supply chain management Organizations increasingly find that they must rely on effective supply chains. manufacturing facilities. this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. It is not clear what kind of performance impacts different supply network structures could have on firms. with little concern for the internal management working of other individual players. and other customers. distribution centers. During the past decades. 1979). to successfully compete in the global market and networked economy. technological changes. From a system's point of view. to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott. companies in a supply network concentrate on the inputs and outputs of the processes. including all suppliers. Therefore. joint ventures. or networks. as an outcome of globalization and proliferation of multi-national companies. Traditionally. "Lean Management" and "Agile Manufacturing" practices. 2004). In the 21st century. particularly the dramatic fall in information . Second. the network structure fits neither "market" nor "hierarchy" categories (Powell. with the complicated interactions among the players. following the earlier "Just-In-Time". a complex network structure can be decomposed into individual component firms (Zhang and Dilts. First.

which in turn assist to achieve the best product flows. each with their capabilities. Supply chain business process integration Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. and attempts to satisfy this demand. According to Lambert and Cooper (2000) operating an integrated supply chain requires continuous information flows. using terms such as "Keiretsu". Shared information between supply chain partners can only be fully leveraged through process integration. Supply chain business process integration involves collaborative work between buyers and suppliers. Global Production Network". 2001). "Virtual Corporation". Many researchers have recognized these kinds of supply network structure as a new organization form. in many companies. Marketing. common systems and shared information. responding to customer demand. such a structure can be defined as "a group of semi-independent organizations. However. and "Next Generation Manufacturing System". communicates with several distributors and retailers. 1998). a paramount component of transaction costs. which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans. "Extended Enterprise". joint product development. The key supply chain processes stated by Lambert (2004) are: Customer relationship management Customer service management Demand management Order fulfillment Manufacturing flow management . management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. has led to changes in coordination among the members of the supply chain network (Coase.communication costs. An example scenario: the purchasing department places orders as requirements become appropriate. In general.

storage and handling and Physical distribution Outsourcing/partnerships Performance . Also. The desired outcome is a winwin relationship. order placement. It also provides the customer with real-time information on promising dates and product availability through interfaces with the company's production and distribution operations. and reduction times in the design cycle and product development is achieved. Successful organizations use following steps to build customer relationships: determine mutually satisfying goals between organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers b) Procurement process Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products.Supplier relationship management Product development and commercialization Returns management One could suggest other key critical supply business processes combining these processes stated by Lambert such as: Customer service management Procurement Product development and commercialization Manufacturing flow management/support measurement a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. the purchasing function develops rapid communication systems. supply sourcing. In firms where operations extend globally. Activities related to obtaining products and materials from outside suppliers. inbound transportation.Customer service provides the source of customer information. negotiation. This requires performing resource planning. such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly. where both parties benefit. sourcing should be managed on a global basis.

the appropriate products must be developed and successfully launched in ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000). changes in the manufacturing flow process lead to shorter cycle times. handling. Manufacturing processes must be flexible to respond to market changes. and develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. and time phasing of components. Also. c) Product development and commercialization Here. hedging. scheduling and supporting manufacturing operations. meaning improved responsiveness and efficiency of demand to customers. managers of the product development and commercialization process must: coordinate with customer relationship management to identify customer-articulated needs. transportation. Activities related to planning. and research to new sources or programmes. d) Manufacturing flow management process The manufacturing process is produced and supplies products to the distribution channels based on past forecasts. As product life cycles shorten. such as work-in-process storage. customers and suppliers must be united into the product development process. In physical distribution. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. the customer is the final destination of a marketing channel. and the availability of the product/service is a vital part of each channel participant's marketing . and must accommodate mass customization. supply continuity. Also. e) Physical distribution This concerns movement of a finished product/service to customers. inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. includes the responsibility to coordinate with suppliers in scheduling.quality assurance. thus to reduce time to market. select materials and suppliers in conjunction with procurement.

External performance measurement is examined through customer perception measures and "best practice" benchmarking. Also. According to experts internal measures are generally collected and analyzed by the firm including Cost Customer Service Productivity measures Asset measurement. links manufacturers. and includes 1) customer perception measurement. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability.effort. wholesalers. A. f) Outsourcing/partnerships This is not just outsourcing the procurement of materials and components. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage and everything else it will outsource. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. By taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can be both correlated with firm performance.T. and 2) best practice benchmarking. but also outsourcing of services that traditionally have been provided in-house. This movement has been particularly evident in logistics where the provision of transport. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing. warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. and Quality. Hence. strategic decisions need to be taken centrally with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level.g. . As logistics competency becomes a more critical factor in creating and maintaining competitive advantage. to manage and control this network of partners and suppliers requires a blend of both central and local involvement. thus it links a marketing channel with its customers (e. retailers).

Customisation Supply chain management components integration The management components of SCM The SCM components are the third element of the four-square circulation framework. Postponement 3. that is what kind of relationship the components may have that are related with suppliers and customers accordingly. Lambert and Cooper (2000) identified the following components which are: 1) Planning and control 2) Work structure 3) Organization structure 4) Product flow facility structure 5) Information flow facility structure 6) Management methods 7) Power and leadership structure 8) Risk and reward structure 9) Culture and attitude However. . The level of integration and management of a business process link is a function of the number and level. Houlihan. adding more management components or increasing the level of each component can increase the level of integration of the business process link. Standardisation 2. The literature on business process reengineering. a more careful examination of the existing literature will lead us to a more comprehensive structure of what should be the key critical supply chain components. buyer-supplier relationships. and SCM suggests various possible components that must receive managerial attention when managing supply relationships. Consequently. 1985).Components of Supply Chain Management are 1. the "branches" of the previous identified supply chain business processes. of components added to the link (Ellram and Cooper. 1990. ranging from low to high.

which are supporting the primary ones. 1996). manufacturing planning. and secondary level components such as market share. 93). Based on this study.Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement (Bowersox and Closs. with secondary level components such as warehouse management.g. does not lead us to the conclusion about what are the primary or secondary (specialized) level supply chain components ( see Bowersox and Closs. thus including secondary level components. Baziotopoulos reviewed the literature to identify supply chain components. and how should these components be structured in order to have a more comprehensive supply chain structure and to examine the supply chain as an integrative one (See above sections 2. Also. A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects financial risk.8): For customer service management: Includes the primary level component of customer relationship management. profit margins. thus including primary level components (Bowersox and Closs. 1996). and postponement (order management). third level channel participants and components may be included. For physical distribution. is a business that participates in channel relationships by performing essential services for primary participants. customer satisfaction. and which are the fundamental branches of the secondary level components. A secondary level participant (specialized). and secondary level components such as benchmarking and order fulfillment. that is what supply chain components should be viewed as primary or secondary.1).1 and 3. personnel management. Consequently. For product development and commercialization: Includes the primary level component of Product Data Management (PDM). that will support the primary level channel participants. and returns to stakeholders. . material management. p. Lambert and Cooper's framework of supply chain components. Baziotopoulos (2004) suggests the following supply chain components (Fig. Manufacturing support and Procurement: Includes the primary level component of enterprise resource planning (ERP). 1996.

decision and policy measurements. in accordance with these secondary level components total cost analysis (TCA). which is correlated with the information flow facility structure within the organization. . and logistics (secondary level components). information flow facility structure is regarded by two important requirements. and b)operational requirements. In general. which are a) planning and Coordination flows.For performance measurement: This includes the primary level component of logistics performance measurement. manufacturing capabilities. customer profitability analysis (CPA). operations. For outsourcing: This includes the primary level component of management methods and the company's cutting-edge strategy and its vital strategic objectives that the company will identify and adopt for particular strategic initiatives in key the areas of technology information. and Asset management could be concerned as well. Secondary level components may include four types of measurement such as: variation. direction. More specifically.

 To increase supplier performance  To improve and gain better control of supply chain. Consumer in .  To increase the role of technology in supply chain  To evaluate the performance of supplier  To analyze the various parameters that determines the choice of ponlait.CHAPTER-III OBJECTIVES OF THE STUDY  To identify the communication needs of supply chain.

Secondary Data Secondary data was collected from Internets. Journals. Most of the questions are consist of multiple choices. 4. So In this projects consist of finite population. 4. It narrates the whole research in a simple manner. The population is said to be finite if it consist of a fixed number of elements so that it is possible to enumerate it in its totality. There are Multiple choice and close ended ( Yes/ No) Questions.6 FIELD WORK The field works is done in PONLAIT.3 QUESTIONNAIRE CONSTRUCTION In this Questionnaire Constructed on the basis of two types.4 DEFINING THE POPULATIONS The Population or Universe can be Finite or infinite. 4.5 SAMPLE SIZE  About 50 sample are taken in PONLAIT 4. PONDICHERRY . various books. The questionnaires were conducted in English as well as in Tamil.1 RESEARCH DESIGN  The research design which was selected was narrative one. and Company Records. 4. Generally 23 questions are prepared and asked to the customers.2 TYPES OF DATA COLLECTED  Primary Data Questionnaires are prepared and interview was conducted.CHAPTER – IV RESEARCH METHODOLOGY 4.

8 DESCRIPTION OF STATISTICAL TOOLS USED    Percentage method Chi-square test Weighted average 4.4. In general statistical usage.1 PERCENTAGE METHOD:  In this project Percentage method test was used.4 SIMPLE CORRELATION: In probability theory and statistics. correlation. 4. Formula: r= Σ(X-Xi) (Y-Yi) √Σ(X-Xi) 2 Σ(Y-Yi) 2 Where X. of Respondents 4. also called correlation coefficient.8. indicates the strength and direction of a linear relationship between two random variables. 2007.8. The following are the formula Percentage of Respondent = No of Respondent x 100 Total no.Reason for repurchase Y-Preference of respondent . correlation or co-relation refers to the departure of two variables from independence.7 PERIOD OF SURVEY  The period of survey is from August to September.

0 Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.NO 1 2 OPTIONS MALE FEMALE TOTAL NO OF RESPONDENTS 35 15 50 PERCENT 70. Remaining 30 % of the respondents are female.1 PERCENTAGE METHOD .1. CHART: 5.0 100.1 Sex 60 Percent 40 20 0 male female Sex . 70% of the Respondents are male.CHAPTER – V 5.0 30.1 SEX OF THE RESPONDENT S.1.GENERAL INFORMATION TABLE: 5. DATA ANALYSIS AND INTERPRETATION 5.

NO 1 2 3 4 OPTIONS Business Employee Student Farmer Total NO OF RESPONDENTS 5 21 22 2 50 PERCENT 10.0 44.0 100. 44% of the Respondent occupations are students 42 % of the respondents occupations are Employee .2 OCCUPATION OF THE RESPONDENTS S.0 Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.1.0 42.TABLE 5.0 4.

CHART 5.3 .2 Occupation 50 40 Percent 30 20 10 0 Business Employee Student Farmer Occupation TABLE: 5.1.1.

0 100.1.3 DO U CONSUME PONLAIT MILK 80 60 Percent 40 20 0 Yes No DO U CONSUME PONLAIT MILK TABLE: 5. CHART: 5.4 IF YES HOW FREQUENT DO CONSUME S.NO 1 2 OPTIONS Yes No TOTAL NO OF RESPONDENTS 40 10 50 PERCENT 80.DO U CONSUME PONLAIT MILK S.0 Source: Primary Data Inference .0 20. 80% of the Respondents consume ponlait milk .1. 20 % of the Respondents consume ponlait milk. From the above table it is inferred that out of 50 employees.NO OPTIONS NO OF RESPONDENT PERCEN T .

5 MILK CONSUMPTION S. 50% of the Respondents consume regularly.S 1 2 3 4 TOTAL Weekly Once Weekly Twice Weekly Thrice Regularly 15 4 6 25 50 30. 30 % of the Respondents consume weekly once.1.1.0 8.0 Source: Primary Data Inference.4 IF YES HOW FREQUENT DO CONSUME 60 50 Percent 30 20 10 0 Weekly Once 40 IF YES HOW FREQUENT DO CONSUME Weekly Twice Weekly Thrice Regularly TABLE: 5.NO OPTIONS NO OF RESPONDENTS PERCENT .0 100.0 12. CHART: 5. From the above table it is inferred that out of 50 employees.0 50.

0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.0 40.0 100.1 2 3 Whether you will go in search of your preferred brand. 40 % of the Respondents consume What ever brand available . You consume what ever brand available from where you consume You will not consume if your preferred brand is not available 23 20 7 50 46. 46% of the Respondents search for preferred brand regularly.0 14.

CHART 5.5 MILK CONSUMPTION 50 40 Percent 30 20 10 0 Wheather you will go in search Of your preferred brand.6 PURCHASE MILK .1.1. You consume what ever brand Available from where you Consume You will not consume if your prefered brand is not available MILK CONSUMPTION TABLE: 5.

22 % of the Respondents purchase milk CHART: 5.0 22.S.N O 1 2 3 4 OPTIONS From grocery shop From ponlait parlours From local merchant From other sources NO OF RESPONDENTS PERCENT 15 11 17 7 50 30.7 LEADING SUPPLIER .6 PURCHASE MILK 40 30 Percent 20 10 0 From grocery shop From ponlait parlours From local merchant From other sources PURCHASE MILK TABLE: 5.1. 30% of the Respondents purchase milk from grocery shop.0 100.0 Total Source: Primary Data Inference: from parlour From the above table it is inferred that out of 50 employees.0 34.1.0 14.

1.0 100.0 12. 88% of the Respondents are leading supplier.NO 1 2 OPTIONS Yes No NO OF RESPONDENTS 44 6 50 PERCENT 88.7 LEADING SUPPLIER 100 80 Percent 60 40 20 0 Yes No LEADING SUPPLIER TABLE: 5.NO OPTIONS NO OF RESPONDENTS PERCENT .0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.8 PRICE S.1. 22 % of the Respondents are not leading supplier CHART 5.S.

0 100.40% of the Respondents Price are normal.0 30. 30 % of the Respondents Price are low.1.1 2 3 4 High Low Normal Very low 13 15 20 2 50 26.1.0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.9 OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME .8 PRICE 40 30 Percent 20 10 0 High Low Normal Very low PRICE TABLE: 5.0 40. CHART: 5.0 4.

S.0 28.9 OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME 40 30 Percent 20 10 0 Ghee Khoa Flower milk Curd OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME TABEL: 5.1.0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.10 WHY DO PREFER PONLAIT BECAUSE OF ITS .NO 1 2 3 4 OPTIONS Ghee Khoa Flower milk Curd NO OF RESPONDENTS 18 14 9 9 50 PERCENT 36. CHART: 5.0 100.36% of the Respondents consume Ghee.1. 28 % of the Respondents consume Khoa.0 18.0 18.

0 18.1.0 14.S.1.10 WHY DO PREFER PONLAIT BECAUSE OF ITS 50 40 Percent 30 20 10 0 Price Quality Brand name All the above WHY DO PREFER PONLAIT BECAUSE OF ITS TABLE: 5. CHART: 5.0 48.0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 employees.48% of the Respondents prefer Quality. 20 % of the Respondents prefer Price.NO 1 2 3 4 OPTIONS Price Quality Brand name All the above NO OF RESPONDENTS 10 24 7 9 50 PERCENT 20.0 100.11 WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET .

39% of the Respondents of ponlait available in market .0 100.0 22.NO 1 2 OPTIONS Yes No NO OF RESPONDENTS 39 11 50 PERCENT 78.12 CUSTOMER FOCUS ON SATIFACTION LEVEL . 11 % Respondents of ponlait not available CHART: 5.1.1.S.11 WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET 80 60 Percent 40 20 0 Yes No WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET TABLE: 5.0 TOTAL Source: Primary Data Inference: in market From the above table it is inferred that out of 50 Respondents.

38% of the Respondents are satisfied.13 WHAT DO YOU PREFER OTHER THAN THE PONLAIT .0 18.0 38.0 100.1.0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents.S. CHART: 5.1.12 CUSTOMER FOCUS ON SATIFACTION LEVEL 40 30 Percent 20 10 0 Highly satisfied Satisfied Neutral Dissatisfied CUSTOMER FOCUS ON SATIFACTION LEVEL TABLE: 5.NO 1 2 3 4 OPTIONS Highly satisfied Satisfied Neutral Dissatisfied NO OF RESPONDENTS 15 19 7 9 50 PERCENT 30. 30 % Respondents are highly satisfied.0 14.

S.0 TOTAL Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents.1. CHART: 5.NO 1 2 OPTIONS Arokiya Russi NO OF RESPONDENTS 30 20 50 PERCENT 60.1.60% of the Respondents prefer Arokiya.14 DO YOU FIND ANY DEFECTS IN PONLAIT MILK .0 100. 40 % Respondents prefer Russi.0 40.13 WHAT DO YOU PREFER OTHER THAN THE PONLAIT 60 50 Percent 30 20 10 0 Arokiya Rusi 40 WHAT DO YOU PREFER OTHER THAN THE PONLAIT TABLE: 5.

1.0 Total Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents.15 .62% of the Respondents have no defects.1.1.14 DO YOU FIND ANY DEFECTS IN PONLAIT MILK 60 Percent 40 20 0 Yes No DO YOU FIND ANY DEFECTS IN PONLAIT MILK 5.0 100. CHART: 5.NO 1 2 OPTIONS Yes No NO OF RESPONDENTS 19 31 50 PERCENT 38.15 ANALYSIS BY CORRELATION BETWEEN REASON FOR DEFECTS AND HEALTH PROBLEM Table 5.S. 38 % Respondents have defects.0 62.

Factors Health Defects Yes No Total 30 20 50 19 31 50 X-Xi 5 -5 0 Y-Yi -6 6 0 (X-Xi) -30 -30 -60 (Y-Yi) 25 25 50 (Y-Yi)2 36 36 72 Xi = 50/2= 25 Yi = 50/2 =25 Formula: r = Σ (X-Xi) (Y-Yi) Σ(X-Xi)2 Σ(Y-Yi)2 Calculation: r = -60 60 = -1 Inference: The value of r is -1. . it indicates that there is a negative correlation between the health and defects.

30 % of the respondents consume ponlait milk weekly once. 40 % of the respondents consume what ever brand in market.  50% of the respondents consume ponlait milk regularly.CHAPTER – VI FINDINGS OF THE STUDY. SUGGESSTION AND RECOMMENDATION 6.  80% of the respondent’s conume ponlait milk.  30% of the respondents purchase milk from grocery shop. 30 %belongs to female 44% of the respondent occupations are students 42% of the respondents occupations are Employee.  46% of the respondents search for preferred brand regularly. 22 % of the respondents purchase milk from parlour .1 FINDINGS OF STUDY   70% belongs to male. Remaining 20 % of the peoples consume other product.

22 % of the Respondents are other leading supplier 40% of the respondents price are normal. 38 % Respondents have defects in ponlait milk .  48% of the respondents prefer Quality of ponalait.60% of the Respondents prefer Arokiya. 30 % Respondents are highly satisfied  Other than ponlait . 20 % of the Respondents prefer Price. 28 % of the respondents consume Khoa. 88% of the Respondents responds that leading supplier are ponlait milk. 11 % respondents of ponlait not available in market  38% of the Respondents are satisfied.  39% of the respondents respond that ponlait available in market . 40 % Respondents prefer Russi  62% of the Respondents have no defects. 36% of the respondents consume Ghee.   Other than milk. 30 % of the respondents price are low.

6.  They can improve their brand image in the presence of customer by demonstration.2.  They have to focus not only on milk but also in other products like Curd.and Khoa to improve their market status. .  They have to improve their supply chain process for an effective utilization of products among customers.  They have to make awareness about the product amomg people by advertisements. Ghee . SUGGESTIONS & RECOMMENDATIONS  The suggestions are gathered from public to improve the ponlait product according to customer focus.

After gathering the information’s.CHAPTER – VII CONCLUSION Customer Focus will help to learn customer buying attitude. so kindly to improve the advertisements and other improvements process such as to introduce new size of packs than the normal size (i. In Ponlait not get much more awareness from public. A survey was conducted with 50 respondents in the company by using questionnaire to collect the information’s from the respondents. The researcher has conducted the study for 30 days.. The company has become a leading in milk products in puducherry. The study has been conducted at PONLAIT. 200ml to 300ml packs) and improve the protein level. the researcher .e..

has analysis the data by interpreting the various tools. Customers.1 LIMITATIONS OF THE STUDY     Due to lack of time. unable to collect more information from the Some customers may afraid to give information’s. The whole population cannot be studied due to Selection of limited Samples . CHAPTER-VIII 8. the researcher has given some suggestions to the management to develop customer focus. Based on the analysis. Illiterate customers are also given information’s.

8. .  This project can be base for the students who are doing the project in the related area and to the organization in viewing the worth of the consumer and attitude of the buying decision making.   The project was developed based on benefits of sales towards organization.2 SCOPE FOR FURTHER STUDY  The project throws on the needs for learning buying behavior for successfull marketing. It will be helpful for the management to identify the needs and benefits of the consumer and to take decision-making to promote marketing status.

Name of the customer 2. Place 3. If Yes How frequently you consume .CHAPTER IX QUESTIONAIRE 01. Sex 05. Age group 10-25 26-40 41-60 60-and above : : : : : : : : : : : Yes/No a) Weekly once Male/Female 04. Occupation 06. Do you consume ponlait milk 08. Income group 2000 to5000 per month 5001to 10000 per month 10001 to 20000 per month 20001 and above 07.

What is the size of the pack do you buy. Do you know that ponlait is a leading Supplier of Milk and Milk product : Yes/No 12. From other sources 11. a)200ml b)500ml 17. From where do you purchase milk product: 01. From local merchant 04. Does the price of the ponlait is a) High b) Low c) Normal d) Very low 13. From Grocery shop 02. b) You consume what ever Brand available from where you consume c) You will not consume if your Preferred Brand is not available. From ponlait parlours 03. 10. What type flavour do you prefer a)Special b)General : Yes/No : Yes/No 18. Whether the ponlait is available sufficient in the market 16. Are you satisfied with the ponlait .b) Weekly twice c) Weekly thrice d) regularly 09. a) Price b) quality c) Brand name d) all the above 15. Other than the milk which product do you like to consume a)Ghee b)Milk peda(khoa) c)Flower milk d) curd 14) why do you prefer ponlait because of its …………. While going for Milk consumption : a) Whether you will go in search of your preferred Brand.

Web Sites: [1] www. What do you prefer other than the ponlait ? a)Arokiya b)Russi 21.answers/topic/consumerbehavior.. “Statistical Methods”.. “ [2] Philip Kotler .19.R.. Do you find any defects in ponlait milk? 23.“Marketing Management” [3] Kothari.com [2] www. What is your satisfaction level a) Highly satisfied b) satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied 20. “Research Methodology” [4] Gupta. S. C.” Consumer Behavior. How is the Packing of the product is it? a) Good b) bad : : Yes/No : Yes/No BIBILIOGRAPHY Books: [1] Leon G. Sehiffman ..com [3] www.P. Does ponlait milk is good your health? 22.com .managementorg.bpotimes.

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