Project for Mba

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

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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. N. KESAVAN, Founder Chairman, Shri. M . DHANASEKARAN, Managing Director and Shri. S . V . SUGUMARAN, Vice-Chairman of our college for their good wishes for this project. I express my immense 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 |TITLES |PAGE NO. | | | | | | |LIST OF TABLES | | | |LIST OF CHARTS | | |I | 1 | | |INTRODUCTION |2 | | | |9 | | |PROFILE OF THE COMPANY | | | |NEED FOR THE STUDY | | |II |REVIEW OF LITERATURE | | | | |10 | |III |OBJECTIVES OF THE STUDY | | | | |21 | |IV |RESEARCH METHODOLOGY | | | | |22 | |V |DATA ANALYSIS AND INTERPRETATION | | | | |24 | |VI | | | | |FINDINGS OF THE STUDY, |39 | | |SUGGESTION AND RECOMMENDATIONS |41 | |VII |CONCLUSION |42 | |VIII | | | | |LIMITATIONS OF THE STUDY |43 | | |SCOPE FOR THE FUTHER STUDY |44 | | |QUESTIONNAIRE |45 | | | |47 | | |BIBILIOGRAPHY | | LIST OF TABLES | | | |TABLE NO. |NAME OF THE TABLE |PAGE NO. | |5. 1. 1 |Sex of the respondents |24 | |5. 1. 2 |OCCUPATION OF THE RESPONDENTS |25 | |5. 1. 3 |CONSUME PONLAIT MILK |26 | |5. 1. |HOW FREQUENT DO CONSUME |27 | |5. 1. 5 |MILK CONSUMPTION |28 | |5. 1. 6 |PURCHASE MILK MADE FROM |29 | |5. 1. 7 |LEADING SUPPLIER IN MILK |30 | |5. 1. 8 |PRICE OF PRODUCT |31 | |5. 1. |OTHER THAN MILK WHICH PRODUCT DO YOU |32 | |5. 1. 10 | RESPONDENTS PREFERENCE |33 | |5. 1. 11 |PONLAIT IS AVAILABLE SUFFICENT IN MARKET |34 | |5. 1. 12 |SATIFACTION LEVEL |35 | |5. 1. 13 |PREFERENCE OTHER THAN THE PONLAIT |36 | |5. 1. 4 |DEFECTS IN PONLAIT MILK |37 | |5. 1. 15 |ANALYSIS BY CORRELATION |38 | LIST OF CHARTS | | | | |CHART NO. |NAME OF THE CHART |PAGE NO | |5. 1. 1 |Sex of the respondents |24 | |5. 1. |OCCUPATION OF THE RESPONDENTS |25 | |5. 1. 3 |CONSUME PONLAIT MILK |26 | |5. 1. 4 |HOW FREQUENT DO CONSUME |27 | |5. 1. 5 |MILK CONSUMPTION |28 | |5. 1. 6 |PURCHASE MILK MADE FROM |29 | |5. 1. |LEADING SUPPLIER IN MILK |30 | |5. 1. 8 |PRICE OF PRODUCT |31 | |5. 1. 9 |OTHER THAN MILK WHICH PRODUCT DO YOU |32 | |5. 1. 10 | RESPONDENTS PREFERENCE |33 | |5. 1. 11 |PONLAIT IS AVAILABLE SUFFICENT IN MARKET |34 | |5. 1. 2 |SATIFACTION LEVEL |35 | |5. 1. 13 |PREFERENCE OTHER THAN THE PONLAIT |36 | |5. 1. 14 |DEFECTS IN PONLAIT MILK |37 | CHAPTER- I INTRODUCTION SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. 1. 1 PROFILE OF THE COMPANY 1. ORIGIN AND GROWTH ? History tells us that Ponlait came to existence as Pondicherry Milk Supply Society registered as 1st Co-operative Society in the Union Territory of Pondicherry on 07-02-1955.

Started in a tiny shed its primary objective and focus was to supply milk to the urban consumers ? As time passed the supply society has diversified its activity from consumer to producers, and concentrated in increasing the milk production by giving various assistance / incentives to the milk-producing farmers. ? The Union started procuring milk from the village producers on quality basis from 1970 onwards. To keep pace with the milk production, the Milk Union has also set up a Dairy Plant with 10,000 ltrs capacity for processing on 12. 04. 1971. ? 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. With the success of the Amul, 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 Pondicherry Co- operative Milk Producers’ Union has also taken up the world’s largest Dairy Expansion Programme, the “Operation Flood” during the year 1982-1985. With the launching of Operation flood Programme the Dairy Plant was expanded to 50,000 ltrs capacity per day. All the milk primary co-operative societies were converted to Anand pattern societies. ? Ponlait has entered the MNEMONIC club conceived, implemented, promoted and popularized by the NDDB for the entire Dairy Co-operative of the Nation, with effect from 30. 03. 2002. 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, by way of Milk Purchase. 1. 1. 2 ACTIVITES OF DIFFERENT UNITS OF THE MILK UNION A. MILK PROCURMENT AND INPUT WING ? Ponlait is operating in the Pondicherry Region with 99 affiliated functional Dairy Co-operative Societies. ? There are 34798 Cattle owners who became members in the Dairy Co-operative Societies at villages and supplying milk to Ponlait. ? Milk Supplying members are paid fortnightly in cash with remunerative milk price and inputs in kind. 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. ? To achieve this objective, the procurement & Input wing is conducting various programmes like Clean Milk Production and Quality Milk Procurement at Dairy Co-operative Societies. ? Besides the main activity, the milk-supplying members milch animals are also providing with cattle feed, green fodder and artificial insemination. B. MILK PROCESSING ? The present handling capacity of the Dairy plant is 50,000 ltrs per day. However with prudent technical manpower and top managements support an average of 80,000 ltrs of milk is handled per day and 93,000 ltrs of milk handled in peak. 3 varieties of milk namely Tonned Milk, Standardised Milk & Premium Milk are produced as per the consumer requirements. The daily consumer demand is met fully. Present demand is 62,000 to 65,000 liters per day. ? From the August 2002, the Dairy is supplying 15,000 liters of standardised milk to school children in the morning under Sri Rajiv Gandhi School Children Break fast scheme, 1st of its kind in the nation organized by the government of pondicherry. Besides at present the union is 28,500 liters if milk supplying to the students both in the morning and evening. The Evening milk supply effected from 20-10-2005 as desired by the government of pondicherry. Besides milk processing and grading, the Dairy is equipped to produce 15 MTS of ghee and 1500 kgs of Khoa (milk peda) monthly. The Ponlait ghee and khoa are much sought after products in the pondicherry town. ? The Dairy is producing 1000-1500 pockets of flavoured milk and 500-1000 of butter milk every day and sells in pondicherry town. ? The Dairy is also producing Paneer and Curd as per the requirement of the consumer as and when needed. C. QUALITY ASSURANCE BY MAKING PROPER MILK TESTING IN LABORATORY AT DAIRY ? Since the milk is highly perishable commodity, proper care is taken to maintain quality of the milk right from the point of production to the point of consumption.

At the village level, the milk poured by the individual member producer are tested at the primary society. ? The milk tested for the quality at society level reaches the Dairy Plant. 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. ? Apart form this, the processed milk is sampled at every point of storage during the process and proper care is taken to maintain quality standards. ? Finally the different varieties of milk are graded and kept ready for packing to the consumers. The pouched milk samples are randomly taken and tested for its shelf life after dispatch of the consumers.

Presently the milk is dispatched to the market at 5 degree centigrade in three varieties viz Toned milk 3. 0% Fat 8. 5% SNF, Standardised milk 4. 5% Fat 8. 5% SNF and the Premium milk 5. 0% Fat 9. 0% SNF. (SNF- Solids Not Fat) ? Day in and Day out maintaining the quality of milk receives the top priority. D. MARKETING ? The Pondicherry Co-operative Milk Producers’ Union is operating in the Pondicherry market, selling three different varieties of milk catering to the different segments of the market, under its brand name “Ponlait”. ? Ponlait is the number one milk brand in the Pondicherry town. Though there are many private players in the market, Ponlait is the major market shareholder.

A market survey finding indicates that the present market share of Ponlait is around 52%. ? The present average market throughput is 62,000 ltrs per day and the sales is in the uptrend. It is anticipated that the sales curve may touch its peak (60,100 ltrs monthly average) during January 2006. ? To cater the urban population, 180 retail outlets are operated by retail sales agents. The retail outlets are supplied with milk through a network 10 milk distribution routes daily in the morning and the evening. ? Besides, the Union is also running 9 milk parlours to sell milk and ilk products. Milk is made available to the urban consumers. 24 hours a day through 5 such parlours. E. CATTLE FEED Ponlait owns a Cattle Feed Plant of 5 MT per day capacity in Thattanchavady Industrial Estate, 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 extending subsidy of Rs. 100/- as provided by the Government of Pondicherry to each bag containing 50 Kgs of Feed out of the total cost of Rs. 312/- per bag ? The present monthly production and supply is 235 MTS. ? In addition Ponlait Cattle Feed is supplied to Neighbouring Villupuram Dist. Dairy also. ? Batch wise the Cattle feed is being tested its quality regularly. The balanced compounded Cattle feed produced in the Ponlait Cattle Feed Plant is proved to be effective for animal health and quality milk production. F. 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, Co-operative Department of Animal Husbandry and Managing Director of the Milk Union. ? Since the committee of management is dissolved, 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. 09. 2002. As per the order of the High Court, Chennai, 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. Registrar of Co-operative Societies- Chairman 2. State Director, NDDB, Erode – Members 3. Director, AHD, Pondicherry – Members ? At present 173 permanent employees in various cadres are working in the Union. 1. 1. 3 MILESTONES OF THE COMPANY |SL. NO. |MILESTONES |YEARS | |1 |Registred as The Pondicherry Cooperative Milk Supply Society Ltd |1955 | |2 Foundation stone laid |1968 | |3 |Dairy Plant Commissioned 10000 ltrs capacity |1971 | |4 |Cattle feed Plant commissioned |1971 | |5 |Registred as The Pondicherry Cooperative Milk Producers’ Union Ltd |1973 | |6 |Artificial Insemination implemented |1984 | |7 |Dairy Plant Expanded 10000 to 30000 ltrs capacity |1987&1988 | |8 |Urea molasses plant implemented |1991 | |9 |Coop.

Development Programme implemented |1992 | |10 |Expansion of Dairy Plant to 50,000 ltrs Capacity |1996&1997 | |11 |Internet based Information System (iDIS) implemented |2000&2001 | |12 |Mnemonic symbol adopted |2002 | |13 |Milk supply to School Children under (Rajiv Gandhi Breakfast Scheme) |2002 | |14 |Inaugrated Sofy ice cream sales at Bus stand Parlour (Atchaya Thiruthai) |2005 | 1. 1. 4 COMPANY ORGANIZATION CHART 1. 2. NEED FOR STUDY

Customer focus on supply management (ponlait) is made for special purpose to improve the product and marketing function for consumer satisfaction. ? To know about how many people to get aware about PONLAIT. ? To find the competitors and analyze the methods for competition marketing. ? 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 REVIEW OF LITERATURE SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible.

Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. The definition one American professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.

Some experts distinguish Supply Chain Management and logistics, while others consider the terms to be interchangeable. Supply Chain Management is also a category of software products. 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. With SCEM possible scenarios can be created and solutions can be planned. Supply chain management problems Supply chain management must address the following problems: Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers.

Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics. Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation etc. Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods. Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain. Supply chain execution is managing and coordinating the movement of materials, information and funds across the supply chain. 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. As corporations strive to focus on core competencies and become more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. The effect has been to increase the number of companies involved in satisfying consumer demand, while reducing management control of daily logistics operations.

Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity. Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply Chain Management Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels of activities. Strategic

Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities. Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management Information Technology infrastructure, to support supply chain operations. Where to make and what to make or buy decisions Align overall organizational strategy with supply strategy Tactical Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, locations, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Milestone payments Operational Daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers. Supply chain management Organizations increasingly find that they must rely on effective supply chains, or networks, to successfully compete in the global market and networked economy.

In Peter Drucker’s (1998) management’s new 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, and little is known about the coordination conditions and trade-offs that may exist among the players. From a system’s point of view, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). 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 internal management control structure is known to impact local firm performance (Mintzberg, 1979). In the 21st century, there have been a few changes in business environment that have contributed to the development of supply chain networks.

First, as an outcome of globalization and proliferation of multi-national companies, joint ventures, strategic alliances and business partnerships were found to be significant success factors, following the earlier “Just-In-Time”, “Lean Management” and “Agile Manufacturing” practices. Second, technological changes, particularly the dramatic fall in information communication costs, a paramount component of transaction costs, has led to changes in coordination among the members of the supply chain network (Coase, 1998). Many researchers have recognized these kinds of supply network structure as a new organization form, using terms such as “Keiretsu”, “Extended Enterprise”, “Virtual Corporation”, Global Production Network”, and “Next Generation Manufacturing System”.

In general, such a structure can be defined as “a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration” (Akkermans, 2001). 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 appropriate. Marketing, responding to customer demand, communicates with several distributors and retailers, and attempts to satisfy this demand. 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, joint product development, common systems and shared information. According to Lambert and Cooper (2000) operating an integrated supply chain requires continuous information flows, which in turn assist to achieve the best product flows. 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: Customer relationship management Customer service management Demand management Order fulfillment Manufacturing flow management 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 Physical distribution Outsourcing/partnerships Performance measurement a) Customer service management process Customer Relationship Management concerns the relationship between the organization and its customers. Customer service provides the source of customer information. 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.

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. 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 reduction times in the design cycle and product development is achieved. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly.

Activities related to obtaining products and materials from outside suppliers. This requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage and handling and quality assurance. Also, includes the responsibility to coordinate with suppliers in scheduling, supply continuity, hedging, and research to new sources or programmes. c) Product development and commercialization Here, customers and suppliers must be united into the product development process, thus to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched in ever shorter time-schedules to remain competitive.

According to Lambert and Cooper (2000), managers of the product development and commercialization process must: coordinate with customer relationship management to identify customer-articulated needs; select materials and suppliers in conjunction with procurement, and develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. d) Manufacturing flow management process The manufacturing process is produced 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 of demand to customers.

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 everything else it will outsource. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, to manage and control 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. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. By taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can be both 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 more narrow. 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 Cost Customer Service Productivity measures Asset measurement, and 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. Components of Supply Chain Management are 1. Standardisation 2. Postponement 3. Customisation Supply chain management components integration 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 reengineering, 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 which are: 1) Planning and control 2) Work structure 3) Organization structure 4) Product flow facility structure ) Information flow facility structure 6) Management methods 7) Power and leadership structure 8) Risk and reward structure 9) Culture and attitude However, 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, the “branches” of the previous identified supply chain business processes, that is what kind of relationship the components may have that are related with suppliers and customers accordingly. Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement (Bowersox and Closs, 1996).

A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects financial risk, thus including primary level components (Bowersox and Closs, 1996). A secondary level participant (specialized), is a business that participates in channel relationships by performing essential services for primary participants, thus including secondary level components, which are supporting the primary ones. Also, third level channel participants and components may be included, that will support the primary level channel participants, and which are the fundamental branches of the secondary level components.

Consequently, Lambert and Cooper’s framework of supply chain components, does not lead us to the conclusion about what are the primary or secondary (specialized) level supply chain components ( see Bowersox and Closs, 1996, p. g. 93), that is what supply chain components should be viewed as primary or secondary, 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. 1 and 3. 1). Baziotopoulos reviewed the literature to identify supply chain components. Based on this study, Baziotopoulos (2004) suggests the following supply chain components (Fig. ): For customer service management: Includes the primary level component of customer relationship management, and secondary level components such as benchmarking and order fulfillment. For product development and commercialization: Includes the primary level component of Product Data Management (PDM), and secondary level components such as market share, customer satisfaction, profit margins, and returns to stakeholders. For physical distribution, Manufacturing support and Procurement: Includes the primary level component of enterprise resource planning (ERP), with secondary level components such as warehouse management, material management, manufacturing planning, personnel management, and postponement (order management).

For performance measurement: This includes the primary level component of logistics performance measurement, which is correlated with the information flow facility structure within the organization. Secondary level components may include four types of measurement such as: variation, direction, decision and policy measurements. More specifically, in accordance with these secondary level components total cost analysis (TCA), customer profitability analysis (CPA), and Asset management could be concerned as well. In general, information flow facility structure is regarded by two important requirements, which are a) planning and Coordination flows, and b)operational requirements.

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, operations, manufacturing capabilities, and logistics (secondary level components). CHAPTER-III OBJECTIVES OF THE STUDY ? To identify the communication needs of supply chain. ? To increase supplier performance ? To improve and gain better control of supply chain. ? 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 Consumer in ponlait. CHAPTER – IV RESEARCH METHODOLOGY 4. 1 RESEARCH DESIGN The research design which was selected was narrative one. It narrates the whole research in a simple manner. 4. 2 TYPES OF DATA COLLECTED ? Primary Data Questionnaires are prepared and interview was conducted. Most of the questions are consist of multiple choices. The questionnaires were conducted in English as well as in Tamil. Generally 23 questions are prepared and asked to the customers. Secondary Data Secondary data was collected from Internets, various books, Journals, and Company Records. 4. 3 QUESTIONNAIRE CONSTRUCTION In this Questionnaire Constructed on the basis of two types. There are Multiple choice and close ended ( Yes/ No) Questions. 4. DEFINING THE POPULATIONS The Population or Universe can be Finite or infinite. 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. So In this projects consist of finite population. 4. 5 SAMPLE SIZE ? About 50 sample are taken in PONLAIT 4. 6 FIELD WORK The field works is done in PONLAIT, PONDICHERRY 4. 7 PERIOD OF SURVEY ? The period of survey is from August to September, 2007. 4. 8 DESCRIPTION OF STATISTICAL TOOLS USED ? Percentage method ? Chi-square test ? Weighted average 4. 8. 1 PERCENTAGE METHOD: ? In this project Percentage method test was used.

The following are the formula No of Respondent Percentage of Respondent = x 100 Total no. of Respondents 4. 8. 4 SIMPLE CORRELATION: In probability theory and statistics, correlation, also called correlation coefficient, indicates the strength and direction of a linear relationship between two random variables. In general statistical usage, correlation or co-relation refers to the departure of two variables from independence. Formula: r = ? (X-Xi) (Y-Yi) v? (X-Xi) 2 ? (Y-Yi) 2 Where X- Reason for repurchase Y-Preference of respondent CHAPTER – V 5. DATA ANALYSIS AND INTERPRETATION 5. 1 PERCENTAGE METHOD – GENERAL INFORMATION TABLE: 5. 1. 1 Sex of the respondent |S.

NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |MALE |35 |70. 0 | |2 |FEMALE |15 |30. 0 | | | |50 |100. 0 | | |TOTAL | | | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees, 70% of the Respondents are male. Remaining 30 % of the respondents are female. CHART: 5. 1. 1 [pic] TABLE 5. 1. 2 OCCUPATION OF THE RESPONDENTS | S.

NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Business |5 |10. 0 | |2 |Employee |21 |42. 0 | |3 |Student |22 |44. 0 | |4 |Farmer |2 |4. 0 | | |Total |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees, 44% of the Respondent occupations are students 42 % of the respondents occupations are Employee CHART 5. 1. 2 [pic] TABLE: 5. 1. 3

DO U CONSUME PONLAIT MILK | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Yes |40 |80. 0 | |2 |No |10 |20. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference ; From the above table it is inferred that out of 50 employees, 80% of the Respondents consume ponlait milk , 20 % of the Respondents consume ponlait milk. CHART: 5. 1. 3 [pic] TABLE: 5. 1. 4 IF YES HOW FREQUENT DO CONSUME | S.

NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Weekly Once |15 |30. 0 | |2 |Weekly Twice |4 |8. 0 | |3 |Weekly Thrice |6 |12. 0 | |4 |Regularly |25 |50. 0 | |TOTAL | |50 |100. 0 | Source: Primary Data Inference; From the above table it is inferred that out of 50 employees, 50% of the Respondents consume regularly, 30 % of the Respondents consume weekly once. CHART: 5. 1. 4 [pic] TABLE: 5. . 5 MILK CONSUMPTION | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Whether you will go in search of your |23 |46. 0 | | |preferred brand. | | | |2 |You consume what ever brand |20 |40. 0 | | |available from where you consume | | | |3 |You will not consume if your preferred |7 |14. | | |brand is not available | | | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees, 46% of the Respondents search for preferred brand regularly, 40 % of the Respondents consume What ever brand available CHART 5. 1. 5 [pic]TABLE: 5. 1. 6 PURCHASE MILK | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |From grocery shop |15 |30. 0 | |2 |From ponlait parlours |11 |22. | |3 |From local merchant |17 |34. 0 | |4 |From other sources |7 |14. 0 | | |Total |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees, 30% of the Respondents purchase milk from grocery shop, 22 % of the Respondents purchase milk from parlour CHART: 5. 1. 6 [pic] TABLE: 5. 1. 7 LEADING SUPPLIER | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Yes |44 |88. | |2 |No |6 |12. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees, 88% of the Respondents are leading supplier, 22 % of the Respondents are not leading supplier CHART 5. 1. 7 [pic] TABLE: 5. 1. 8 PRICE | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |High |13 |26. 0 | |2 |Low |15 |30. | |3 |Normal |20 |40. 0 | |4 |Very low |2 |4. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees,40% of the Respondents Price are normal, 30 % of the Respondents Price are low. CHART: 5. 1. 8 [pic] TABLE: 5. 1. 9 OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Ghee |18 |36. | |2 |Khoa |14 |28. 0 | |3 |Flower milk |9 |18. 0 | |4 |Curd |9 |18. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 employees,36% of the Respondents consume Ghee, 28 % of the Respondents consume Khoa. CHART: 5. 1. 9 [pic] TABEL: 5. 1. 10 WHY DO PREFER PONLAIT BECAUSE OF ITS | S.

NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Price |10 |20. 0 | |2 |Quality |24 |48. 0 | |3 |Brand name |7 |14. 0 | |4 |All the above |9 |18. 0 | | |TOTAL |50 |100. 0 | 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. CHART: 5. 1. 10 [pic] TABLE: 5. 1. 11 WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Yes |39 |78. 0 | |2 |No |11 |22. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents. 39% of the Respondents of ponlait available in market , 11 % Respondents of ponlait not available in market CHART: 5. 1. 11 [pic] TABLE: 5. 1. 12 CUSTOMER FOCUS ON SATIFACTION LEVEL | S.

NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Highly satisfied |15 |30. 0 | |2 |Satisfied |19 |38. 0 | |3 |Neutral |7 |14. 0 | |4 |Dissatisfied |9 |18. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents. 8% of the Respondents are satisfied, 30 % Respondents are highly satisfied. CHART: 5. 1. 12 [pic] TABLE: 5. 1. 13 WHAT DO YOU PREFER OTHER THAN THE PONLAIT | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Arokiya |30 |60. 0 | |2 |Russi |20 |40. 0 | | |TOTAL |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents. 60% of the Respondents prefer Arokiya, 40 % Respondents prefer Russi. CHART: 5. 1. 13 pic] TABLE: 5. 1. 14 DO YOU FIND ANY DEFECTS IN PONLAIT MILK | S. NO |OPTIONS |NO OF RESPONDENTS |PERCENT | |1 |Yes |19 |38. 0 | |2 |No |31 |62. 0 | | |Total |50 |100. 0 | Source: Primary Data Inference: From the above table it is inferred that out of 50 Respondents. 62% of the Respondents have no defects, 38 % Respondents have defects. CHART: 5. 1. 14 [pic] 5. 1. 15 ANALYSIS BY CORRELATION BETWEEN REASON FOR DEFECTS AND HEALTH PROBLEM Table 5. 1. 15 Factors |Health |Defects |X-Xi |Y-Yi |(X-Xi) |(Y-Yi) |(Y-Yi)2 | |Yes |30 |19 |5 |-6 |-30 |25 |36 | |No |20 |31 |-5 |6 |-30 |25 |36 | |Total |50 |50 |0 |0 |-60 |50 |72 | Xi = 50/2= 25 Yi = 50/2 =25 Formula: r = ? (X-Xi) (Y-Yi) ?(X-Xi)2 ? (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. CHAPTER – VI FINDINGS OF THE STUDY, SUGGESSTION AND RECOMMENDATION 6. 1 FINDINGS OF STUDY ? 70% belongs to male, 30 %belongs to female ? 44% of the respondent occupations are students 42% of the respondents occupations are Employee. ? 80% of the respondent’s conume ponlait milk. Remaining 20 % of the peoples consume other product. 50% of the respondents consume ponlait milk regularly, 30 % of the respondents consume ponlait milk weekly once. ? 46% of the respondents search for preferred brand regularly, 40 % of the respondents consume what ever brand in market. ? 30% of the respondents purchase milk from grocery shop, 22 % of the respondents purchase milk from parlour ? 88% of the Respondents responds that leading supplier are ponlait milk, 22 % of the Respondents are other leading supplier ? 40% of the respondents price are normal, 30 % of the respondents price are low. ? Other than milk, 36% of the respondents consume Ghee, 28 % of the respondents consume Khoa. ? 48% of the respondents prefer Quality of ponalait, 20 % of the Respondents prefer Price. 39% of the respondents respond that ponlait available in market , 11 % respondents of ponlait not available in market ? 38% of the Respondents are satisfied, 30 % Respondents are highly satisfied ? Other than ponlait ,60% of the Respondents prefer Arokiya, 40 % Respondents prefer Russi ? 62% of the Respondents have no defects, 38 % Respondents have defects in ponlait milk 6. 2. SUGGESTIONS & RECOMMENDATIONS ? The suggestions are gathered from public to improve the ponlait product according to customer focus. ? They can improve their brand image in the presence of customer by demonstration. ? 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. ? They have to focus not only on milk but also in other products like Curd, Ghee ,and Khoa to improve their market status. CHAPTER – VII CONCLUSION Customer Focus will help to learn customer buying attitude. In Ponlait not get much more awareness from public, so kindly to improve the advertisements and other improvements process such as to introduce new size of packs than the normal size (i. e. , 200ml to 300ml packs) and improve the protein level. The study has been conducted at PONLAIT. The company has become a leading in milk products in puducherry.. The researcher has conducted the study for 30 days.

A survey was conducted with 50 respondents in the company by using questionnaire to collect the information’s from the respondents. After gathering the information’s, the researcher has analysis the data by interpreting the various tools. Based on the analysis, the researcher has given some suggestions to the management to develop customer focus. CHAPTER-VIII 8. 1 LIMITATIONS OF THE STUDY ? Due to lack of time, unable to collect more information from the Customers. ? Some customers may afraid to give information’s. ? Illiterate customers are also given information’s. ? The whole population cannot be studied due to Selection of limited Samples 8. 2 SCOPE FOR FURTHER STUDY The project throws on the needs for learning buying behavior for successfull marketing. ? The project was developed based on benefits of sales towards organization. ? 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. ? 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. CHAPTER IX QUESTIONAIRE 01. Name of the customer: 02. Place : 03. Age group 10-25 26-40 41-60 60-and above: 04. Sex:Male/Female 05. Occupation: 06. Income group 2000 to5000 per month: 001to 10000 per month: 10001 to 20000 per month: 20001 and above: 07. Do you consume ponlait milk : Yes/No 08. If Yes How frequently you consume:a) Weekly once b) Weekly twice c) Weekly thrice d) regularly 09. While going for Milk consumption: a) Whether you will go in search of your preferred Brand. b) You consume what ever Brand available from where you consume c) You will not consume if your Preferred Brand is not available. 10. From where do you purchase milk product: 01. From Grocery shop 02. From ponlait parlours 03. From local merchant 04. From other sources 11. Do you know that ponlait is a leading Supplier of Milk and Milk product :Yes/No 2. Does the price of the ponlait is a) Highb) Low c) Normald) Very low 13. Other than the milk which product do you like to consume a)Gheeb)Milk peda(khoa) c)Flower milk d) curd 14) why do you prefer ponlait because of its …………. a) Price b) quality c) Brand name d) all the above 15. Whether the ponlait is available sufficient in the market : Yes/No 16. What is the size of the pack do you buy. a)200mlb)500ml 17. What type flavour do you prefer a)Special b)General 18. Are you satisfied with the ponlait : Yes/No 19. What is your satisfaction level a) Highly satisfied b) satisfied c) Neutral d) Dissatisfied ) Highly dissatisfied 20. What do you prefer other than the ponlait ? : a)Arokiyab)Russi 21. Does ponlait milk is good your health? : Yes/No 22. Do you find any defects in ponlait milk? : Yes/No 23. How is the Packing of the product is it? a) Good b) bad BIBILIOGRAPHY Books: [1] Leon G. Sehiffman . ,” Consumer Behavior. “ [2] Philip Kotler . ,“Marketing Management” [3] Kothari, C. R. , “Research Methodology” [4] Gupta, S. P. , “Statistical Methods”, Web Sites: [1] www. bpotimes. com [2] www. managementorg. com [3] www. answers/topic/consumerbehavior. com [pic] ———————– 80 DO U CONSUME PONLAIT MILK Percent 0 Yes No

DO U CONSUME PONLAIT MILK Percent Occupation Percent 0 0 20 10 20 30 40 50 Occupation Business Employee Student 10 40 Farmer 60 20 30 40 50 60 IF YES HOW FREQUENT DO CONSUME Weekly Once Weekly Twice Weekly Thrice Regularly IF YES HOW FREQUENT DO CONSUME You will not consume if your prefered brand is not available You consume what ever brand Available from where you Consume Wheather you will go in search Of your preferred brand. MILK CONSUMPTION 50 40 30 20 10 0 Percent MILK CONSUMPTION LEADING SUPPLIER Percent PURCHASE MILK Percent 0 10 20 30 40 PURCHASE MILK From grocery shop From ponlait parlours From local merchant From other sources 0 20 40 60 80 100

LEADING SUPPLIER Yes No Very low Normal Low High PRICE 40 30 20 10 0 Percent PRICE Curd Flower milk Khoa Ghee OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME 40 30 20 10 0 Percent OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME All the above Brand name Quality Price WHY DO PREFER PONLAIT BECAUSE OF ITS 50 40 30 20 10 0 Percent WHY DO PREFER PONLAIT BECAUSE OF ITS No Yes WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET 80 60 40 20 0 Percent WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET Dissatisfied Neutral Satisfied Highly satisfied CUSTOMER FOCUS ON SATIFACTION LEVEL 40 30 20 10 0 Percent CUSTOMER FOCUS ON SATIFACTION LEVEL Rusi Arokiya

WHAT DO YOU PREFER OTHER THAN THE PONLAIT 60 50 40 30 20 10 0 Percent WHAT DO YOU PREFER OTHER THAN THE PONLAI

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