NIT Graduate School of Management

TABLE OF CONTENTS

Chapter
No. Contents Page No.

1. Introduction 02-14

2. Company Profile 15-17

3. Literature Review 18-21

22- 25
4. Research Methodology

5. Data Collection 26-36

6. Data Analysis 37-46

7. Conclusions & Suggestions 47-49

Bibliography 50-51

52-56
Anaxure

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CHAPTER 1

INTRODUCTION

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CHAPTER-1

INTRODUCTION

A supply chain is comprised of all the businesses and individual contributors involved
in creating a product, from raw materials to finished merchandise. Examples of supply
chain activities include farming, refining, design, manufacturing, packaging and
transportation. Retail companies become involved in supply chain management in
order to control product quality, inventory levels, timing, and expenses. In a global
economy, supply chain management often includes dealings with companies and
individual contributors in other countries, which requires involvement in politics,
trade and tariff laws, quality, control, and international ,relationships. Because global
supply chains are both logistically and technologically complicated, there are now
global supply chain management specialists and firms who oversee the process for
many different retail companies.

WHAT IS SUPPLY CHAIN MANAGEMENT?

A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers. Supply chains exist in both service and manufacturing organizations,
although the complexity of the chain may vary greatly from industry to industry and
firm to firm.

Another definition is provided by the APICS Dictionary when it defines SCM as the
"design, planning, execution, control, and monitoring of supply chain activities with
the objective of creating net value, building a competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with demand and measuring performance
globally."

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A schematic diagram of the Supply Chain Management is shown in Figure 1.

Figure 1:- Schematic diagram of Supply Chain Management

PROBLEMS ADDRESSED BY SUPPLY CHAIN MANAGEMENT:-

Supply chain management must address the following problems:

1. Distribution Network Configuration: number, location and network

missions of suppliers, production facilities, distribution centers, warehouses,
cross-docks and customers.
2. Distribution Strategy: questions of operating control (centralized,
decentralized or shared); delivery scheme, e.g., direct shipment, pool point
shipping, cross docking, DSD(direct store delivery), closed loop shipping;
mode of transportation, e.g., motor carrier, including truckload, LTL, parcel;
railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC
(container on flatcar); ocean freight; airfreight; replenishment strategy (e.g.,

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pull, push or hybrid); and transportation control (e.g., owner-operated, private

carrier, common carrier, contract carrier, or 3PL).
3. Trade-Offs in Logistical Activities: The above activities must be well
coordinated in order to achieve the lowest total logistics cost. Trade-offs may
increase the total cost if only one of the activities is optimized. For example,
full truckload (FTL) rates are more economical on a cost per pallet basis than
less than truckload (LTL) shipments. If, however, a full truckload of a product
is ordered to reduce transportation costs, there will be an increase in inventory
holding costs which may increase total logistics costs.
4. Information: Integration of processes through the supply chain to share
valuable information, including demand signals, forecasts, inventory,
transportation, potential collaboration, etc.
5. Inventory Management: Quantity and location of inventory, including raw
materials, work-in-progress (WIP) and finished goods.
6. Cash-Flow: Arranging the payment terms and methodologies for exchanging
funds across entities within the supply chain.

IMPORTANCES OF SUPPLY CHAIN MANAGEMENT:-

Organizations increasingly find that they must rely on effective supply chains,
or networks, to compete in the global market and networked economy. In Peter
Drucker's (1998) new management paradigms, this concept of business relationships
extends beyond traditional enterprise boundaries and seeks to organize entire business
processes throughout a value chain of multiple companies.

During the past decades, globalization, outsourcing and information technology have
enabled many organizations, such as Dell and Hewlett Packard, to successfully
operate solid collaborative supply networks in which each specialized business
partner focuses on only a few key strategic activities (Scott, 1993). This inter-
organizational supply network can be acknowledged as a new form of organization.
However, with the complicated interactions among the players, the network structure
fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what
kind of performance impacts different supply network structures could have on firms,
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and little is known about the coordination conditions and trade-offs that may exist
among the players. Traditionally, companies in a supply network concentrate on the
inputs and outputs of the processes, with little concern for the internal management
working of other individual players. Therefore, the choice of an internal management
control structure is known to impact local firm performance (Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to the
development of supply chain networks. First, as an outcome of globalization and the
proliferation of multinational companies, joint ventures, strategic alliances and
business partnerships, significant success factors were identified, complementing the
earlier "Just-In-Time", "Lean Manufacturing" and "Agile Manufacturing" practices.
Second, technological changes, particularly the dramatic fall in information
communication costs, which are a significant component of transaction costs, have led
to changes in coordination among the members of the supply chain network (Coase,
1998).

SUPPLY CHAIN BUSINESS PROCESS INTEGRATION:-

Successful SCM requires a change from managing individual functions to integrating

activities into key supply chain processes. An example scenario: the purchasing
department places orders as requirements become known. The marketing department,
responding to customer demand, communicates with several distributors and retailers
as it attempts to determine ways to satisfy this demand. Information shared between
supply chains partners can only be fully leveraged through process integration.

Supply chain business process integration involves collaborative work between

buyers and suppliers, joint product development, common systems and shared
information. According to Lambert and Cooper (2000), operating an integrated supply
chain requires a continuous information flow. However, in many companies,
management has reached the conclusion that optimizing the product flows cannot be
accomplished without implementing a process approach to the business. The key
supply chain processes stated by Lambert (2004) are:

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1. Customer relationship management

2. Customer service management
3. Demand management style
4. Order fulfillment
5. Manufacturing flow management
6. Supplier relationship management
7. Product development and commercialization
8. Returns management

Much has been written about demand management. Best-in-Class companies have
similar characteristics, which include the following: a) Internal and external
collaboration b) Lead time reduction initiatives c) Tighter feedback from customer
and market demand d) Customer level forecasting One could suggest other key
critical supply business processes which combine these processes stated by Lambert
such as:

1. Customer service management

2. Procurement
3. Product development and commercialization
4. Manufacturing flow management/support
5. Physical distribution
6. Outsourcing/partnerships
7. Performance measurement
8. Warehousing management

A) CUSTOMER SERVICE MANAGEMENT PROCESS:-

Customer Relationship Management concerns the relationship between the

organization and its customers. Customer service is the source of customer
information. It also provides the customer with real-time information on scheduling
and product availability through interfaces with the company's production and
distribution operations. Successful organizations use the following Steps to build
customer relationships:
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1. Determine mutually satisfying goals for organization and customers

2. Establish and maintain customer rapport
3. Produce positive feelings in the organization and the customers

B) PROCUREMENT PROCESS:-
Strategic plans are drawn up with suppliers to support the manufacturing flow
management process and the development of new products. In firms where operations
extend globally, sourcing should be managed on a global basis. The desired outcome
is a win-win relationship where both parties benefit, and a reduction in time required
for the design cycle and product development. Also, the purchasing function develops
rapid communication systems, such as electronic data interchange (EDI) and Internet
linkage to convey possible requirements more rapidly. Activities related to obtaining
products and materials from outside suppliers involve resource planning, supply
sourcing, negotiation, order placement, inbound transportation, storage, handling and
quality assurance, many of which include the responsibility to coordinate with
suppliers on matters of scheduling, supply continuity, hedging, and research into new
sources or programs.

C) PRODUCT DEVELOPMENT AND COMMERCIALIZATION:-

Here, customers and suppliers must be integrated into the product development
process in order to reduce time to market. As product life cycles shorten, the
appropriate products must be developed and successfully launched with ever shorter
time-schedules to remain competitive. According to Lambert and Cooper (2000),
managers of the product development and commercialization process must:

1. Coordinate with customer relationship management to identify customer-

articulated needs;
2. Select materials and suppliers in conjunction with procurement, and
3. Develop production technology in manufacturing flow to manufacture and
integrate into the best supply chain flow for the product/market combination.

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D) MANUFACTURING FLOW MANAGEMENT PROCESS:-

The manufacturing process produces and supplies products to the distribution

channels based on past forecasts. Manufacturing processes must be flexible to respond
to market changes and must accommodate mass customization. Orders are processes
operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the
manufacturing flow process lead to shorter cycle times, meaning improved
responsiveness and efficiency in meeting customer demand. Activities related to
planning, scheduling and supporting manufacturing operations, such as work-in-
process storage, handling, transportation, and time phasing of components, inventory
at manufacturing sites and maximum flexibility in the coordination of geographic and
final assemblies postponement of physical distribution operations.

E) PHYSICAL DISTRIBUTION:-

This concerns movement of a finished product/service to customers. In physical

distribution, 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 effort. It is also through the physical distribution process that the time and
space of customer service become an integral part of marketing, thus it links a
marketing channel with its customers (e.g., links manufacturers, wholesalers,
retailers).

F) OUTSOURCING / PARTNERSHIPS:-

This is not just outsourcing the procurement of materials and components, but also
outsourcing of services that traditionally have been provided in-house. 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 outsource everything else. Managing
and controlling this network of partners and suppliers requires a blend of both central
and local involvement. 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.
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G) PERFORMANCE MEASUREMENT:-

Experts found a strong relationship from the largest arcs of supplier and customer
integration to market share and profitability. Taking advantage of supplier capabilities
and emphasizing a long-term supply chain perspective in customer relationships can
both be correlated with firm performance. As logistics competency becomes a more
critical factor in creating and maintaining competitive advantage, logistics
measurement becomes increasingly important because the difference between
profitable and unprofitable operations becomes narrower. A.T. Kearney Consultants
(1985) noted that firms engaging in comprehensive performance measurement
realized improvements in overall productivity. According to experts, internal
measures are generally collected and analyzed by the firm including:

1. Cost
2. Customer Service
3. Productivity measures
4. Asset measurement, and
5. Quality.

External performance measurement is examined through customer perception

measures and "best practice" benchmarking, and includes 1) customer perception
measurement, and 2) best practice benchmarking.

H) WAREHOUSING MANAGEMENT:-

As a case of reducing company cost & expenses, warehousing management is

carrying the valuable role against operations. In case of perfect storing & office with
all convenient facilities in company level, reducing manpower cost, dispatching
authority with on time delivery, loading & unloading facilities with proper area, area
for service station, stock management system etc. Components of supply chain
management are as follows: 1. Standardization 2. Postponement 3.Customization.

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THEORIES OF SUPPLY CHAIN MANAGEMENT:-

Currently there is a gap in the literature available on supply chain management

studies: there is no theoretical support for explaining the existence and the boundaries
of supply chain management. A few authors such as Halldorsson, etc. (2003), Ketchen
and Hult (2006) and Lavassani, etc. (2009) have tried to provide theoretical
foundations for different areas related to supply chain by employing organizational
theories.

These theories include:

1. Resource-Based View (RBV)

2. Transaction Cost Analysis (TCA)
3. Knowledge-Based View (KBV)
4. Strategic Choice Theory (SCT)
5. Agency Theory (AT)
6. Institutional theory (InT)
7. Systems Theory (ST)
8. Network Perspective (NP)
9. Materials Logistics Management (MLM)
10. Just-in-Time (JIT)
11. Material Requirements Planning (MRP)
12. Theory of Constraints (TOC)
13. Total Quality Management (TQM)
14. Agile Manufacturing
15. Time Based Competition (TBC)
16. Quick Response Manufacturing (QRM)
17. Customer Relationship Management (CRM)
18. Requirements Chain Management (RCM)

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THE MANAGEMENT COMPONENTS OF SCM:-

The SCM components are the third element of the four-square circulation framework.
The level of integration and management of a business process link is a function of
the number and level, ranging from low to high, of components added to the link
(Ellram and Cooper, 1990; Houlihan, 1985). Consequently, adding more management
components or increasing the level of each.

Component can increase the level of integration of the business process link. The
literature on business process re-engineering, buyer-supplier relationships and SCM
suggests various possible components that must receive managerial attention when
managing supply relationships. Lambert and Cooper (2000) identified the following
components:

1. Planning and control

2. Work structure
3. Organization structure
4. Product flow facility structure

SUPPLY CHAIN DECISIONS:-

We classify the decisions for supply chain management into two broad categories --
strategic and operational. As the term implies, strategic decisions are made typically
over a longer time horizon. These are closely linked to the corporate strategy (they
sometimes {it are} the corporate strategy), and guide supply chain policies from a
design perspective. On the other hand, operational decisions are short term, and focus
on activities over a day-to-day basis. The effort in these type of decisions is to
effectively and efficiently manage the product flow in the "strategically" planned
supply chain.

There are four major decision areas in supply chain management: 1) location, 2)
production, 3) inventory, and 4) transportation (distribution), and there are both
strategic and operational elements in each of these decision areas.

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1. LOCATION DECISIONS:-

The geographic placement of production facilities, stocking points, and sourcing

points is the natural first step in creating a supply chain. The location of facilities
involves a commitment of resources to a long-term plan. Once the size, number,
and location of these are determined, so are the possible paths by which the
product flows through to the final customer. These decisions are of great
significance to a firm since they represent the basic strategy for accessing
customer markets, and will have a considerable impact on revenue, cost, and level
of service. These decisions should be determined by an optimization routine that
considers production costs, taxes, duties and duty drawback, tariffs, local content,
distribution costs, production limitations, etc. (See Arntzen, Brown, Harrison and
Trafton [1995] for a thorough discussion of these aspects.) Although location
decisions are primarily strategic, they also have implications on an operational
level.

2. PRODUCTION DECISIONS :-

The strategic decisions include what products to produce, and which plants to
produce them in, allocation of suppliers to plants, plants to DC's, and DC's to
customer markets. As before, these decisions have a big impact on the revenues,
costs and customer service levels of the firm. These decisions assume the
existence of the facilities, but determine the exact path(s) through which a product
flows to and from these facilities. Another critical issue is the capacity of the
manufacturing facilities--and this largely depends the degree of vertical
integration within the firm. Operational decisions focus on detailed production
scheduling. These decisions include the construction of the master production
schedules, scheduling production on machines, and equipment maintenance. Other
considerations include workload balancing, and quality control measures at a
production facility.

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3. INVENTORY DECISIONS:-

These refer to means by which inventories are managed. Inventories exist at every
stage of the supply chain as either raw material, semi-finished or finished goods.
They can also be in-process between locations. Their primary purpose to buffer
against any uncertainty that might exist in the supply chain. Since holding of
inventories can cost anywhere between 20 to 40 percent of their value, their
efficient management is critical in supply chain operations. It is strategic in the
sense that top management sets goals. However, most researchers have
approached the management of inventory from an operational perspective. These
include deployment strategies (push versus pull), control policies --- the
determination of the optimal levels of order quantities and reorder points, and
setting safety stock levels, at each stocking location. These levels are critical,
since they are primary determinants of customer service levels.

4. TRANSPORTATION DECISIONS:-

The mode choice aspect of these decisions is the more strategic ones. These are
closely linked to the inventory decisions, since the best choice of mode is often found
by trading-off the cost of using the particular mode of transport with the indirect cost
of inventory associated with that mode. While air shipments may be fast, reliable, and
warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail
may be much cheaper, but they necessitate holding relatively large amounts of
inventory to buffer against the inherent uncertainty associated with them. Therefore
customer service levels, and geographic location play vital roles in such decisions.
Since transportation is more than 30 percent of the logistics costs, operating
efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments
versus Lot-for-Lot), routing and scheduling of equipment are key in effective
management of the firm's transport strategy.

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CHAPTER 2

COMPANY PROFILE

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COMPANY PROFILE

ITC is one of India's foremost private sector companies with a market capitalization
of US $ 35 billion and a turnover of US $ 7 billion. ITC is rated among the World's
Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by
Forbes magazine and among India's Most Valuable Companies by Business Today.
ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted
by Brand Finance and published by the Economic Times. ITC also ranks among
Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, and Information Technology. While ITC is an outstanding
market leader in its traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent
businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.As one of India's most valuable and respected corporations, ITC is widely
perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this
source of inspiration "a commitment beyond the market". In his own words: "ITC
believes that its aspiration to create enduring value for the nation provides the motive
force to sustain growing shareholder value. ITC practices this philosophy by not only
driving each of its businesses towards international competitiveness but by also
consciously contributing to enhancing the competitiveness of the larger value chain of
which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating
multiple drivers of growth anchored on its time-tested core competencies: unmatched
distribution reach, superior brand-building capabilities, effective supply chain
management and acknowledged service skills in hoteliering. Over time, the strategic
forays into new businesses are expected to garner a significant share of these
emerging high-growth markets in India.ITC's Agri-Business is one of India's largest
exporters of agricultural products. The ITC group's contribution to foreign exchange
earnings over the last ten years amounted to nearly US$ 4.9 billion, of which agri
exports constituted 56%. The Company's 'e-Choupal' initiative is enabling Indian
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agriculture significantly enhance its competitiveness by empowering Indian farmers

through the power of the Internet. This transformational strategy, which has already
become the subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd.,
provides IT services and solutions to leading global customers. ITC Infotech has
carved a niche for itself by addressing customer challenges through innovative IT
solutions.ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment management
systems. ITC was the first company in India to voluntarily seek a corporate
governance rating.

ITC group directly employs 29,000 people and the Company's Businesses and their
value-chains generate over 5 million sustainable livelihoods. The Company
continuously endeavours to enhance its wealth generating capabilities in a globalising
environment to consistently reward more than 4,14,000 shareholders, fulfil the
aspirations of its stakeholders and meet societal expectations. This over-arching
vision of the company is expressively captured in its corporate positioning statement:
"Enduring Value. For the Nation. For the Shareholder.

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CHAPTER 3

OBJECTIVES OF
STUDY

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CHAPTER-3
OBJECTIVE OF THE PROJECT

THEORETICAL APPROACH OF CUSTOMERS:-

The aim of marketing is to meet and satisfy target customer needs or wants.
But understanding customer attitude are never simple. Customer may state their needs
and wants but act otherwise. They may not be touch with their deeper motivations.
They may respond to influence that change their mind at the last minute. Nevertheless
marketers must study their target customers wants, attitude, preferences and buying
behavior of this perception plays a major role in buying behavior .

CUSTOMERS PREFERENCE:-
People are exposed to tremendous of daily stimuli, for example; an
average person may be exposing to over 1500 advertisement a day. Because a person
cannot possibly attend to all these stimuli. Most stimuli will be screened out a process
called customers preference towards the products. The red challenge is to explain
which stimuli people will notice. Some findings are given below-
1. People are more likely to notice stimuli that relate to a current need.
2. People are more likely to notice stimuli that they anticipate.
3. People are more likely to notice stimuli whose deviations are large in
relation to the normal size of stimuli.

ATTITUDE OF CUSTOMERS:-
“Attitude can be said to be the process by which an individual selects
organizes and interprets information inputs”.

Attitude depends not only on the physical stimuli but also on the stimuli
related to the surroundings field and on the conditions within the individual. People
perceive the same situation or object differently because of their perceptual process,
selective attention, selective distinction, and selective retention. As a result customer
may not necessarily see or hear the message that marketers want to send . Marketers
must therefore be careful to take these perceptual processes in to account in designing
their marketing campaign.

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SCOPE OF THE STUDY:-

Marketing is typically seen as the task of creating, providing and delivering
goods and services to consumers and business. Marketers are skilled in stimulating
demand for company products, but this is limited to a view of the task marketers
perform. In common parlance, marketing is regarded as the activity involving the
buying and selling of products and services. However as a subject of study it has been
approach is more than one way Commodities, Institutional, Managerial, Societal and
Systems approaches. Just as production and logistics professionals are responsible for
supply management, marketers are responsible for demand management.

SELECTIVE DISTORTION:-
Even noted stimuli do not always come across in the way as their creators
intended. Selective distortion is tendency of people to twist information in a way that
will support rather than challenge their perceptions. Unfortunately there is not much
marketers can do about selective distortion.

SELECTIVE RETENTION:-
People will forget much that learn but will tend to retain information that
supports their attitudes and beliefs. Selective retention explains why marketers use
repetition in sending messages to their target market.

MARKETING AND CONSUMER ORIENTATION:-

Being close to the customer is the heart of the marketing concept. A customer
orientation places the customer at the centre of the organizations activities. All
personal need to be aware of the way in which they can contribute to customer
satisfaction, even when they do not have personal direct contact. Internal marketing
can play a key role here. Positive feedback from customer can be relayed to everyone
in the organization through internal bulletins. Similarly, any quality problems or
customer complaints should also be discussed at all levels to see if system or
processes within the organization can be improved.

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The main types of interaction are as follows:-

 To study the direct interaction between the service provider or their frontline
Personal and the customer. This is where the customer formally receives the
service offering or part of it from the service provider.
 To study the interaction between the customer and the service provider’s agent
or Representative. Frequently in service marketing it is an agent or broker who
actually delivers the service to the customers.
 To study the interaction between the customer and other customers in some
service, this inter action between customers themselves makes up part of
service.
 To study the interaction between the customer and the service facilities.

This involves the customers interaction with the environment, facilities and
automates systems offered by the service provider.

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CHAPTER 4

RESEARCH
METHODOLOGY

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CHAPTER-4
RESEARCH METHODOLOGY

MARKETING RESEARCH :-

Marketing research is the systematic gathering, recording and analyzing of data about
problems connected with the market place, i.e. problems relating to product, price,
promotion and distribution of the 4 P’s of the marketing mix. Marketing research is
said to be moving “away from simple surveys to action oriented, decision oriented,
problem solving research”.

It is a method of getting facts to be used by executive in formulating policies and

plans. Beginning and End of marketing management is marketing research.

“Marketing research is the systematic design, collection, analysis and

reporting of data and findings relevant to a specific marketing situation facing the
company”.

:- Philip Kotler.
“The Systematic gathering, recording and analyzing of data about problems
relating to marketing of goods and services”.
:- American Marketing Association.

AREA OF MARKETING RESEARCH :-

There are four major strategic areas of marketing mix:-

1. Product
2. Price
3. Promotion
4. Distribution

Under promotion there are further five subdivisions-

i) Personal selling
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ii) Advertising

iii) Publicity
iv) Sales promotion
v) Public relations

MARKETING RESEARCH PROCESS:-

Marketing research involves the systematic and scientific methodology in
collection, processing and interpretation of marketing data. The logical steps
undertaken in conducting proper marketing process are enumerated as under : -

RESEARCH PROCESS

Define the problem

Establishes the specific objectives

Formulation of Research plan

Collection of Data

Analyzing the collected Information

Drawing Conclusion & Marketing Recommendation

Preparation of Report

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Research Methodology

The study is based on personal decision, documentary observation; the data

has been collected from the executives of the organization and through the published
sources. The study is based on the outcomes of personal interviews and observation.
But the extreme care has been taken to involve the constructive suggestion from the
executives.

1. To collect desired information and data in a systematic manner.

2. Appropriate selection of method is necessary.

Since the study is on first the detail study of the warehouse is been conducted
about its Management team its structure the number of departments which all brands
does the store has, who are its suppliers about its warehouses.

SOURCE OF DATA

3. Primary Data
4. Secondary Data

Primary Data

The data collected for the first time through questionnaires and to meet with
distributors. The data is collected through their retailer.

Secondary Data

The data is collected by secondary sources. The data is collected from company
manual product brochure, company and annual report.

1. Website

2. Survey reports

3. Books & Magazines .

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CHAPTER 5

DATA COLLECTION

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CHAPTER-5
DATA COLLECTION

FINDINGS

1. Distributor gets good salary and margin on food products from company.
2. Distributors are satisfied with this company.
3. All grievances are accepted in management and solve and implement very
fast.
4. About service provided by distributor are good because they are happy in their
work
5. All retailer want to maintain relation with distributor and they handle there
own problem.

The survey consisted of primary data of 100 respondents using questionnaire

method. The following figure and graph were the outcome of the analysis of the
collected data.

For the purpose a sample of 100 customers are taken:

Q. Since how many years your company using Essae Weighing Scale?

Year No. of Respondents % of Respondents

1 to 5 08 00.88
6 to 10 55 55.00
11 to 15 34 34.00
16 to 20 03 03.00
21 & Above 00 00.00

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Graph Showing duration for dealing with Company :

No. of Respondents

3 8

34
1 to 5
6 to 10
11 to 15
55 16 to 20
21 & Above

When I asked to the customers, since how many years your company using
Essae Weighing Scale? the utilizing customers give maximum recommendation for
the 6 to 10 years of period on which using scale.

Q. How do you know about the Essae Weighing Scale?

Media No. of Respondents % of Respondents

Advertisement 13 13.00
News Paper 03 03.00
T.V./Radio 02 02.00
Mkting Executive 80 80.00
Other 02 02.00

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80
80
70
60
50
40
30 No.of Respondents
20 13 % of Respondents
10 3 2 2
0

Marketing Executive is the most motivating factor 80% as far as

advertisement is concerned with about 13% of respondents influence by the
Marketing Executive. Still a significant portion of the respondents that is about
Newspaper 03%, T.V. / Radio 02% and only 02% other.

Q. Are you satisfied with the product feature?

Response No. of Respondents % of Respondents

Yes 94 94.00
No 06 06.00

No.of Respondents

Yes
No

94

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The main purpose was to find out whether the customers are satisfied in using Essae
Weighing Balance or not. From the analysis and the above graph it is clearly show
that 94% of respondents are getting satisfied with using Essae Weighing Scale and
06% of respondents are not satisfied with using Essae Weighing Scale, the reason of
that unsatisfaction is poor service and quality of the products.

Q. What is the level of satisfaction in using Essae Weighing Scale?

Satisfaction Level No. of Respondents % of Respondents

Satisfied 28 28.00
Highly Satisfied 65 65.00
Dissatisfied 04 04.00
Highly Dissatisfied 03 03.00

70 65

60

50

40
28 No.of Respondents
30 % of Respondents
20

10 4 3

0
Satisfied Highly Dissatisfied Highly
Satisfied Dissatisfied

It is evident from the figures that highly satisfied level is most convenient it is
up to the 65%. Ease of satisfied level 28%. But the other respondents are dissatisfied
and highly dissatisfied in using Essae Weighing Scale.

Q. What is your opinion about using Essae Weighing Scale?

Opinion No. of Respondents % of Respondents

Good 23 23.00
Very Good 41 41.00
Excellent 32 32.00
Bad 04 04.00

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50
41
40
32
30 23
20 No.of Respondents
% of Respondents
10
4
0 % of Respondents
Good No.of Respondents
Very
Excellent Bad
Good

It is obvious from the statistics that the product is perceived to be of high

quality, a sentiment is shared by almost 41% is very good, 32% is Excellent, 23%
Good and 04% is Bad.

Q. What you would say about the service of Essae Weighing Scale Company?

Service No. of Respondents % of Respondents

Poor 04 04.00
Satisfactory 17 17.00
Good 26 26.00
Very Good 33 53.00

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60 53

50

40

26 No.of Respondents
30
% of Respondents
17
20

10 4

0
Poor Satisfactory Good Very Good

The main purpose was to findout the level of service customer getting from
the company. From the analysis and above graph it is obvious clear that 53% of
respondents are giving answer, service of Essae company is very good, 26% of
respondents saying Good. 17% of respondents saying satisfactory and 4% of
respondents saying poor.

Q. Does company offered discount on purchase of that Weighing Scale?

Response No. of Respondents % of Respondents

Yes 88 88.00
No 05 05.00
Sometimes 07 07.00

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No.of Respondents

5 7

Yes
No
Sometimes
88

The main purpose was to find out the either the company give discount to the
customers or not and if company give discount, then what % of discount give by the
company. From the above graph it is clear that 88% of respondents getting discount
from the company and remaining are get discount sometimes and some of the
respondents do not get discount.

Q. What % of discount give you by Essae Company?

Discount No. of Respondents % of Respondents

1 to 5 02 02.00
6 to 10 19 20.00
11 to 15 36 37.89
16 to 20 38 40.00

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No.of Respondents

2
19
38
1 to 5
6 to 10
11 to 15
36 16 to 20

The main purpose was to find outs, if the company give discount to the
customers then how many % of discount give on the Weighing Scale. Among the
100 respondents , 5 respondents saying that they do not get discount and out of 95
respondents, 40% of respondents get discount 16 to 20% ; 38% of respondents get
discount 11 to 15%, 20% of respondents get discount 06 to 10% and 2% of
respondents get discount up to 5% .

Q. What is your mode payment?

Payment Mode No. of Respondents % of Respondents

Cash 10 10.00
Credit 90 90.00s

No.of Respondents

10

Cash
Credit

90

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Weighing Scale are generally transacted in Credit 90% with only 10% of total
respondents availing cash facilities.

Q. Do you feel that advertisement is important for selling of Weighing

Scale?

Response No. of Respondents % of Respondents

Yes 93 93.00
No 07 07.00

93
100 93

80

60
Yes
7
40 7 No

20 No

0
Yes
No.of Respondents
% of Respondents

The graph show that in weighing scale the impact of advertisement is more.

Q. What you feel, through which media the company advertise their
Weighing Scale?

Advertising Media No. of Respondents % of Respondents

Television 16 17.20
Radio 02 02.15
Newspaper 43 46.24
Staff 32 34.41

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45 46.24%
40
35 34.41%
30
25 % of Respondents
43
20 No.of Respondents
17.20% 32
15
10 16
5
2.125%
0
Television Radio News Paper Staff

The main purpose was to find out, which media is the most effective for an
advertisement. Among the 100 respondents, 7 respondents saying that they do not
want to necessity of advertisement and out of 93 respondents 46% of respondents
give preference to the Newspaper media, 35% of respondents give preference to the
staff media of advertisement, 17% of respondents give preference to the Television
media & 2% of respondents give preference to the Radio media of advertisement.

“A Study of Supply Chain Management Adopted By Itc With

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CHAPTER 6

DATA ANALYSIS

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CHAPTER-6
DATA ANALYSIS AND INTERPRITATION

FOR DISTRIBUTOR:

1) Do you get proper salary to satisfy your all things?

RESEPONCE IN %

9%
1%

YES
NO
NEUTRAL

10%

Distributors Percentage

Yes 10 50%

No 1 5%

Neutral 9 45%

Total 20 100%

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INTERPRETATION

According to the pie chart all 20 distributor’s say, 10 distributor’s say yes we
are getting goods in salary. And only one say no, and 1 distributor’s say
neutral mean neither yes nor no, this mean that they are in good salary and they
can maintain all kinds of necessity things in their salary and they are very
much satisfy for doing their work.

2) Do you get good margin on food products?

MARGIN IN %
18

16

14

12

10

8 17%
MARGIN IN %
6

2
3%
0
YES NO

Distributors Percentage

Yes 17 84%

No 3 16%

Total 20 100%

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NTERPRETATION

According to data that 17 distributor are getting good margin on foods product
and 3 distributors is not that much satisfy and distributor’s are getting good
margin and that is why company can give some other product also supply. But
there should be some of polices for distributors to keep it some limit of margin
mean it should not be happened that distributor are getting more that limit. So this
kind of thing company should monitor.

3) Are you satisfied with this company to supply food products?

Satisfaction level
0
1 AGREE
3
0
STRONGLY
AGREE

16 NEUTRAL

Distributors Percentage

AGREE 16 76%

STRONGLY 0 0
AGREE

NEUTRAL 3 18%

DISAGREE 1 6%

STRONGLY 0 0
DISAGREE

Total 20 100%

“A Study of Supply Chain Management Adopted By Itc With

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INTERPRETATION

According to data that 16 distributors are satisfied and 3 are in neither yes or no
and one is disagree that mean they are just doing there work and the level of agree
distributor are more than but if we see the majority you find that most of the
distributor’s are satisfy because margin, provide vehicles and many more facility
by the company.

5. Is your grievances accepted in management?

GRIEVEANCES ACCEPTANCE

YES
NO
18

Distributors Percentage

YES 18 90%

NO 2 10%

Total 20 100%

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INTERPRETATION

According to the pie chart all 18 distributors say yes and two are saying means
most of the distributor’s grievances are accepting by the management, that is
why ITC Company is growing very fast in FMCG. because company see the
problem of the employees or distributor’s and then full try to solve that
problem as early as possible.

FOR RETAILER:

6. How distributors behave or speak with you?

DISTRIBUTOR SPEAK
25

20

15

22% DISTRIBUTOR SPEAK

10

5
6%
2%
0
NORMAL POLITELY ROUGHLY

Distributors Percentage

Normal 22 73.33%

Polite 6 20%

Roughly 2 6.67%

Total 30 100%

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INTERPRETATION

When distributor supply their food products to retailer that time how they speak with
the retailer and 22 distributor speak normal with retailer and 6 distributor’s speak a
very polite manner and 2 speak very roughly that mean According to this data, the
way of talking are goods of distributor’s with retailer therefore they have good in
their work and there relation.

7. Do you get good service on proper time from distributor?

GOOD SERVICES
0
2 AGREE
8 STRONGLY AGREE
16
NEUTRAL
4
DISAGREE
STRONGLY DISAGREE

Distributors Percentage

AGREE 16 53.33%

STRONGLY 4 13.33%
AGREE

NEUTRAL 8 26.67%

DISAGREE 2 6.67%

STRONGLY 0 0
DISAGREE

Total 30 100%

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INTERPRETATION

According to pie chart that 16 distributor are giving good service and 4
distributor are giving very good service on time and 8 distributor are in
normal position to give good services and 2 distributor’s are providing late
service. If we see the data that company is providing vehicle that is why
company have good supply chain in intermediaterie for providing very
good services.

8. Will you carry this relation in future?

FUTURE RELATION

2
YES
28 NO
NEUTRAL

Distributors Percentage

YES 28 93.33%

NO 2 6.67%

Total 30 100%

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INTERPRETATION

According to the pie chart 28 distributors say yes and 2 are disagreeing but
majorities say retailer’s will keep relation with distributor’s. Because
distributors attitudes and his behavior with retailer.

9. How they handle your problem?

PROBLEM HANDLING
0%

3%

TELL TO TOP
AUTHORUTY
OWN SOLVE

NO

27%

Distributors Percentage

TELL TO 27 20%
TOP
AUTHORITY

OWN SOLVE 3 80%

NO 0 0

Total 30 100%

“A Study of Supply Chain Management Adopted By Itc With

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INTERPRETATION

According to data that if there is any problem from distributor’s and they are telling
to the distributor, and are they solving retailer problem? 27 distributor says we tell
to higher authority to solve that problem and 3 distributors say that we solve own the
problem that mean distributors have some patience’s and listen of their retailer
because he has to work with retailer

“A Study of Supply Chain Management Adopted By Itc With

Reference to Nagpur Region”
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CHAPTER 7

CONCLUSION
&
SUGGESTION

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CHAPTER-7
CONCLUSION & SUGGESTION

Suggestions

1. Distributors are getting good salary but if distributor sells such products
which is not demanded in the market, then there should be some incentive for
them.

2. Giving occasional discounts on food products.

3. Inventory level should be maintained during promotion.

4. Company should provide verity of schemes on food products.

5. Distributors feedback should take within three month for there satisfaction level by
management.

6. Various programme should take for there entertainment and their family.

“A Study of Supply Chain Management Adopted By Itc With

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CONCLUSION

The supply chain of ITC in food segment is very fast in intermediates and on proper

time they supply there product to the retailer. We have observed that distributors are

getting satisfaction from their work, because company is providing proper margin and

schemes to the distributors and vehicles also. The distribution channel of ITC in food

segment is like manufacturing unit to hub to distributor-executive to wholesaler to

small retailer to customer or consumer.

“A Study of Supply Chain Management Adopted By Itc With

Reference to Nagpur Region”
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BIBLIOGRAPHY

“A Study of Supply Chain Management Adopted By Itc With

Reference to Nagpur Region”
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Bibliography

www.itcportal.com

www.google.com

http://en.wikipedia.org/wiki/Supply_chain_management

wikipedia.org/wiki/ITC Limited

Book on Supply chain management by Agrawal.

“A Study of Supply Chain Management Adopted By Itc With

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ANAXURE

“A Study of Supply Chain Management Adopted By Itc With

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QUESTIONARE
I Avinash R. Shrikhande, I have to do one survey for distribution satisfaction
from distributors of ITC in food product segment in Nagpur. We want you
opinion about your company and for your satisfaction level associated with
ITC company.

FOR DISTRIBUTOR

Name

Address

Marketing Area

Date:-

Mobile no-

Age
1) 15-20 2) 20-30 3) 30-45 4) 45 above
Gender
1) Male 2) Female

1) What is your education qualification?

1. Undergraduate
2. Graduate
3. Post graduate

2) What is your monthly income?

A) Less than 10000 B) 10000 to 20000
C) 20000 to 30000 D) 30000 to 40000
E) More Than 40000

3) What king of products do you supply to retailer?

1. Biscuit
2. Bingo’s
3. All foods

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4) Is company provided vehicle to you?

1) Agree 2) Strongly Agree 3) Neutral 4) Disagree 5) strongly Disagree

5) Do you get good margin on foods product?

1. Yes
2. No

6) Do you get proper salary to satisfy your all things?

1. Yes
2. No
3. neutral

7) Are you satisfied with this company to supply food products?

1) Agree 2) Strongly Agree 3) Neutral 4) Disagree 5) Strongly Disagree

8) Is your grievances accepted in management?

1) YES 2) NO

9) Who are your intermediates?

1) Wholesaler 2) Small Wholesaler 3) Agent

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For Retailer:
Name

Name of shop

Date:-

Mobile no-

1) Do you get foods product of ITC Company?

1) Yes

2) No

2) Do you get good service on proper time from distributor?

1) Agree 2) strongly agree 3) neutral 4) disagree 5) strongly disagree

3) How distributors behave or speak with you?

1) Politely 2) Roughly 3) Normal

4) How they handle you problem?

1) Tell to top authority

2) own solve

3) No

5) Will you carry this relation in future?

1) Yes

2) No

3) Neutral

6) Who are your intermediates?

“A Study of Supply Chain Management Adopted By Itc With

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Thank you………….

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