A

PROJECT REPORT ON

“ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT

PRACTICES ADOPTED BY
DINSHAW’S DAIRY FOODS LTD.”

Submitted to
MD UNIVERSITY ROHTAK in partial fulfillment of the requirement for the
award of degree of Master of business administration

2018- 2020

Submitted by
Name:- Sahil soni
Class :- MBA 2.4 GENERAL
University Roll no :- 8317222

INSTITUTION OF MANAGEMENT STUDIES AND RESEARCH ,MDU

Delhi rd, near Delhi Bypass, Rohtak, Haryana 124001

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 CERTIFICATE

This is to certify that Mr. Sahil soni is bonafide student of Master of Business
Administration course with specialization in Finance Management, for the session of 2018-
2020 of INSTITUTION OF MANAGEMENT STUDIES AND RESEARCH ,MDU
This candidate has worked under the supervision of Dr. Jagdeep singla and has
satisfactorily finished his project work, in this academic session. The project submitted
by his own work, and is complete so as to warrant its presentation forexamination.
His project work, entitled “to “ANALYTICAL STUDY OF SUPPLY CHAIN
MANAGEMENT PRACTICES ADOPTED BY DINSHAW’S DAIRY FOODS
LTD.” which is in partial fulfillment of requirement for the above course, and is being
forwarded to MD University for examination.

(Professor) (Projectee)
Dr. Jagdeep singla Mr. Sahil soni

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 DECLARATION

I Sahil soni,a student of 4th semester, MBA University Roll No. 8713222 of IMSAR
under MD University,Rohtak declarethat the project report entitled “ANALYTICAL
STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES ADOPTED BY DINSHAW’S
DAIRY FOODS LTD.NAGPUR”is an original peace of work submittedby me under the
supervision of Dr. Jagdeep singla (Professor).The matter presented has not been copied from
any other report . This report is an original work prepared by me.

Sahil soni
University Roll no. 831722
Date :
Place :

Countersigned

Dr. JAGDEEP SINGLA

IMSAR, MDU
ROHTAK

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 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is not
different. I am thankful to my faculty DR. Jagdeep singla for supporting me and guiding
me throughout the project. This report would not have been possible without his help.

Sahil soni

MBA(2.4 GENERAL)

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 INDEX

Sr.no. CHAPTERS PARTICULARS PAGE NO.

1 CHAPTER 1 Abstrat
Aim
Objectives
2 CHAPTER 2 Introduction of company
3 CHAPTER 3 Introduction of topic
4 CHAPTER 4 Literature review
5 CHAPTER 5 Research methodology
6 CHAPTER 6 Data analysis and interpretation
7 CHAPTER 7 Conclusion
8 CHAPTER 8 Suggestion
9 ANNEXURE 1 Bibliography
10 ANNEXURE 2 Questionnaire

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 AIM

“ANALYTICAL STUDY OF SUPPLY CHAIN MANAGEMENT PRACTICES

ADOPTED BY DINSHAW’S DAIRY FOODS LTD.NAGPUR”

OBJECTIVES

 To study supply chain management at Dinshaw’s dairy foods ltd.

 To study milk procurement process at Dinshaw’s dairy foods ltd.
 To study production process at Dinshaw’s dairy foodsltd.
 To study distribution network of Dinshaw’s dairy foodsltd.
 To focus on product distributionprocess.
 To study transport managementsystem.

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 CHAPTER 2
INTRODUCTION OF COMPANY

DINSHAW’S ICE CREAM

INCEPTION

Early 1930s:
Two enterprising brothers, DINSHAW and ERUCH RANA, started a small dairy
business in Gittikhadan, on the outskirts of Nagpur. Their obsession with quality and
transparent business practices, brought prosperity and confidence to the young
businessmen. When opportunity knocked in the form of an Englishman who suggested
that they try manufacturing ice cream, the idea was readily translated into reality.
“DINSHAW’S ICE CREAM” was born in 1933 when Nagpurians came to know the
creamy, hand churneddelicacy.

INTIAL GROWTH
An alien concept, ice cream eating was considered a luxury, which could only be
indulged in, on very special days during the sweltering heat of Nagpur’s grueling
summer. The conviction of their ultimate success, and the vision of these young
entrepreneurs, far outweighed the difficulties of running a purely seasonal business with
its vagaries of demand. By mid forties, Nagpur’s gentry had extended ice cream eating
into the winter and the name DINSHAW’S had become synonymous with the ice cream
in Nagpur.

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THE SECOND GENERATION GROWTH:
SAM DINSHAW RANA and JIMMY ERUCH RANA put on the mantles of their august
fathers. Burning with the same zeal to succeed, the same uncompromising attitude
towards quality and service, the Rana cousins struck out for wider horizons in1981.
With an investment of just Rs.5 Lakhs, a small factory came up to replace the cattle
pounds. The dairy business gracefully gave way to its prospering offspring, the ice-cream
business.

The magic of” “DINSHAW’S goodwill spawned a net work of enthusiastic dealer-
franchises all over central India, where DINSHAW’S enjoy near monopoly eventoday.

Success breeds Success. The sound business principles of the founders, which gave them
their initial success, became the foundation of DINSHAW’S business edifice. Quality
consciousness went beyond the quality of relations with employees, business associates
and its ultimate consumer. By 1987 DINSHAW’S was known in central India as not only
the company, which made the best ice creams, but also the company that built best
relations.

Persistent efforts from prospective distributors and dealers of other areas and greater
demand for varieties from existing areas forced DINSHAW’S to expand its
manufacturing capacities. Imported continuous freezers expand plants and storage
facilities wide with marketdemand.

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By 1989 cold storage depots had sprung up in Raipur, Jabalpur, Indore, Akola,
Aurangabad, Pune, Hyderabad, Guntur and Vishakhapatnam more by pressures of
demand than by design. Consumer appreciation for its products and for its credo of
“VALUE FOR MONEY” forced continuous expansion and modernization of
manufacturing capacities which today are to the tune of 35000 Liters of ice-cream per
day. By 1990 the business was experiencing difficulty in getting regular supplies of good
quality to need its ever-increasing needs. The obstacles were turned into an opportunity to
diversify into Diarybusiness.
The firm had turned full circle by coming back to its parent business of Diary
which today has a capacity to process and pouch 1lac liters of Milk per day.The
citizens of

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Nagpur who were dependent only on milk supplied by Government Milk Scheme and
local vendors welcomed the supply of standardized quality milk and DINSHAW’S
became the first branded milk to be sold inNagpur.

Being a responsible corporate citizen and being aware of the needs of protecting its
environment, DINSHAW’S have invested more than Rs.70 Lakhs in an Effluent
Treatment Plant, which is a model for any industry of its size. As in all other areas,
Dinshaw’s foray in Bombay has been on a low key. DINSHAW’S have been able to
grow in the face of competition from national and multinational giants of the industry
because of the inherent strength of its products, policies and people.

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 CHAPTER 3
INTRODUCTION OF TOPIC
The topic supply chain management is basically concerned with the following process
of supply chain management and operations, like
1. Procurement andProduction
2. Packaging
3. Distribution
Practices followed by Dinshaw’s Dairy Products ltd. Nagpur.

1. PROCUREMENT AND PRODUCTION PROCESSAT

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

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

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

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(a) Chillingcenters
(b) Bulkcoolers

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

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

MILK PRODUCTION
The buffalo and the cow and to a very limited extent the goat are the main milch
animals in the India. The buffalo contributes some 64 per cent, the cow 33 per cent
and the goat 3 per cent of the total milk produced in India. There are several well
recognized breeds of cows and buffaloes in the region such as Red Sindhi, Gir,
Tharparkar, and Sahiwal among the cows, and Murrah and Neeli Ravi among the
buffaloes, are outstanding breeds. The milk of the buffalo is comparatively richer in
fatcontentthanthatofthecow.Inordertoincreasemilkproductionwemusthaveto
:
• Upgrade ouranimals
• Better feeding practicesand
• Well organized veterinary services, including artificialinsemination.
The population of the cross-bred cows and the upgraded buffaloes is expected to
increase the milk production significantly.

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

MILK PROCUREMENT DEPARTMENT (MPD)

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

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

It stands on the following five pillars:

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

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

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

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c. Low in bacterialnumbers.
d. Normal composition and acidity.
e. Free of antibiotics and chemicalresidues.

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

1. Develop infrastructure
 Develop Centers
 Install Chillingunits
 DevelopLab
 Development ofVMC

2. StaffRecruitment
 Recruit
 Provision of Competitivesalary
 Train
 Provision of necessaryfacility

3. Transportation system
 Tankerpurchase
 Vehicles purchase/rent

Cost:
I. Before Setup
 Projection Cost
 Set up / Capitalcostt.

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II. After collectionstarts

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

 Variable
 Fix
 Losses

Variable :
1. Raw milkPrice
2. Ice /Chilling
3. Transportation cost; it includes Haulagecost

Fixed cost :
1. Procurement cost; includes salaries wagesbenefits
2. Utilities
3. Rents
4. Maintenance andrepair
5. Weighing / measuringcost
6. Storage cost; it includes ice and chillingcost
7. Other miscellaneous cost; including quality cost andetc.

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

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

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

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

producers through companies. More such kind of competition is beneficial for the
industries & may results into following:
• Increasequantity
• Increasequality
• Decreaseprice

MILK PROCUREMENT TYPES:

Milk Procurement is the starting point of dairy industry supply chain. The
procurement process starts on the farm, where producers are advised, quality is
monitored and raw milk is collected daily from various Farmers/progressive farmers
by mini-suppliers and village milk collection centers countrywide and transported to
factories in the most cost-effective manner. Raw milk quality is the cornerstone of
excellent dairy products. Milk Procurement guards this quality with an eagle eye and
ensures that company’s production needs are met. Through teamwork within the
supply chain, procurement teams of companies ensure that raw milk losses are kept to
the absoluteminimum.
Milk procurement is basically of two types :
1. Supplier’scollection
2. Selfcollection
1. Supplier Milk collection system: In this case supplier brings milk with their own
sourcesatfactory.Themilkisscrutinizedbyqualityassurancedepartmentofdairyas

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

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

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

Bulk milk transport: A Milk procurement team of companies ensures that milk is
collected and transported to factories daily. Milk cooled on the farm or cooling centre
may be transported in bulk tankers. Bulk tankers are insulated, so the milk will
remain cold until it reaches the plant (provided the transport is fast, i.e. short distance
or good roads enabling milk to be delivered before the temperature of milk rises
above10*C

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

MILK PROCUREMENT SYSTEM (MPS):

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

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

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

Apart from these there are aluminum foils, tin plates, timber, plastics, low and high
polymers that are used as dairy packaging material.
Types of Dairy Products
• Milk: Powdered andLiquid
• FermentedMilk
• Whey BasedDrinks
• Curds
• Cheese
• CottageCheese
• Cream
• Butteretc.

Branding in Dairy Packaging

Packaging is an integral part of the brand identity. The packaging of any dairy
product should deliver consumer expectations of natural dairy taste.

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• To contain theproduct
• To protect theproduct
• To sell theproduct

Types of Dairy Packaging

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

Types of Materials Used in Making Dairy Packaging

• Metalized plasticfilms
• PVDC coated films
• Plastic

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 • Paper
• Nylon
• LDPE
• Laminates
• Polyolefin
• Polypropylene
• LDPEpolyethylene
• LLDPE polyethyleneetc.

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

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

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

Compressor speed 750 750 750 750 750 750

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

Compressor speed 850 850 850 850 850 850

RPM

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

Note :

Evaporating Temperature : -10oC

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

The above data is for general guidelines only.

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

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

24
• 3.Measurement
TMS have or need to have a Logistics KPI reporting function for transport.
Various functions of a TMS:
• Planning and optimizing of terrestrial transportrounds
• Transportation mode and carrierselection
• Management of air and maritimetransport
• Real time vehiclestracking
• Service qualitycontrol
• Vehicle Load and Routeoptimization
• Transport costs and schemesimulation
• Shipment batching oforders
• Cost control, KPI (Key performance indicators) reporting and statistics
o Typical KPIs include but not limitedto:
1. % of On Time Pick Up or Delivery Performance relative torequested
2. Cost Per Metric - mile; km; Weight; Cube;Pallet

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

25
• Contingency Planning - Prepare for holiday or seasonal spikes and other "what if"
scenarios
• Reports - Driver manifests, maps, directions, resource utilization, customer
delivery cost, actual versus projected by route and by stop, planned route summaries
and many more reports to help you consistently evaluate yoursuccess
Load Optimization
• Accurate and Quick Load Design for Multiple Route Types - Each type of route
requires different loading patterns. Determine (or assign) equipment to warehouse
bays with capacities, preferences or even empty bays for returnedgoods
• Multiple Loading Strategies - Different delivery operations require different
loading strategies. Our warehouse-friendly software allows for greater picking
efficiencies by grouping SKUs. Driver-friendly groups product by stop, minimizing
the number of bays a driver must visit at eachstop
• Pre-Build Orders - Load orders to be picked, built and pre-staged throughout the
day, all while continuing to have them allocated to the correct route and truck during
the final loadingpass
• Load Design to Reduce Product Breakage - Most breakage occurs within the first
10 minutes of a route due to poor packing. Fleet Loader's leading loading algorithms
allow for proper mixing and stacking to reducebreakage
• Reports - Final load sheet, driver check-out, load validation and pick sheets
provide you with all of the detailed information youneed

26
 CHAPTER 4 LITERATURE REVIEW

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

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

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

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

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

27
 CHAPTER 5 REASEARCH
METHODOLOGY

SAMPLING METHOD

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

DATA COLLECTION

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

PRIMARY SOURCE
 Observation
 PersonalInterviews

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

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

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

SECONDARY SOURCE
 Google searchengine.

 Other weblinks.

28
 CHAPTER 6
DATA ANALYSIS AND INTERPRETATION

1. How do you manage your supply chain?

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

25

20
Axis Title

15

10

0
Close
partnership
with
suppliers
No. of Respondent 2

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

25

20
Axis Title

15

10

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

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

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

0%

The company has a separate logisticdepartment.

Yes
No

100%

31
 4. Does your company have a clear logistics strategicplan?
YES NO
No. of respondent
Yes 28
No 2

7%

93%

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

Yes
No

32
 5. What types of systems are currently in use in your company to support Supply
Chain Management?
Subcontracting
3PL
Supply Chain Benchmarking
Vertical integration

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

20
18
16
14
12
Axis Title

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

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

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

E-procurement
EDI
Outsourcing
Subcontracting
Plan strategically

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

14
12
10
Axis Title

8
6
4
2
0
E- Subcontractin Plan
EDI Outsourcing
procurement g strategically
No. of Respon dent 13 7 1 4 5

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

implementing e-procurement.

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

25

20

15
Axis Title

10

No. of respondent 20 5 2

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

35
 8. Is supply chain management having all the address of the sub distributor’s
branches of thecompany?
Yes No
No. of respondent
Yes 27
No 3

10%

90%

Out of 30 employees 27 of Dinshaw’s dairy foods ltd. knows the address of the
sub distributors.

Yes
No

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

20
18
16
14
12
Axis Title

10
8
6
4
2
0

No. of respondent

Out of 30 employees 18 employees think that the working strategies of supply

chain management department are average.

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

17%

Yes
Not sufficient

83%

Out of 30 employees 25 think that transportation is sufficient for Dinshaw’s dairy

foods ltd.

38
11. According to the current growth process of the organization, which of the
following needs much attention and progress to boost theproduction?
* Operationalactivities
* Tacticalactivities
* Current programmingstrategies
No. of respondent
Operational activities 25
Tactical activities 3
Current programming strategies 2

30

25

20
Axis Title

15

10

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

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

operational activities.

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

16
14
12
10
Axis Title

8
6
4
2
0
During
storage
m
No. ofrespondent 15

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

facing problem during storage.

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

14

12

10
Axis Title

No. of respondent 3 5

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

41
 14. Is there any case recorded by the supply chain department in which the production
department complained late delivery of rawmaterials?
* Yes
* No
No. of respondent
Yes 4
No 26

13%

87%

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

material.

Yes
No

42
 CHAPTER 7
CONCLUSION

According to the study done on the feedback of questionnaire, data interpretation and
analysis the results are as follows-
The result shows that the Dinshaw’s dairy foods ltd. practices supply chain with
the help of many suppliers. Meanwhile the company is managing its supply chain
successfully. The company has a separate logistics and dispatchdepartment.
Dinshaw’s dairy foods ltd has a clear and sophisticated logistic plan.
Operational activities and supply chain management activities of the Dinshaw’s
dairy foods ltd are by the support of supply chain benchmarking. The company is
planning to implement and practice the e-procurement, EDI plan strategically infuture.
Current supply chain management and IT activities of the company are going
flawless and in future there is scope for better supply chain and distribution network.
The current transportation and logistics management of the company is sufficient and is
flexible enough so as to change the current policies if any.
The study has shown us that there is some obstacles during handling and storage
of dairy products which creates hurdle in SCM therefore should beeradicated.

43
 LIMITATIONS OF THE STUDY

 This study throws light on supply chain management process commenced at the
Dinshaw’s dairy foods ltd. Butibori MIDCNagpur.
 The SCM studied in this report focuses on the dairy industry of Nagpur and it
may differ from firm tofirm.
 The disadvantage of study SCM is investment of time, money and resources
needed to implement and overlook supplychain.
 Dinshaw`s ice cream has nohomepage.
 Convenience sampling used here has its ownlimitations.
 There have been some inaccuracies due to non – cooperative and rude behavior of
therespondents.

44
 CHAPTER 8
SUGGESTIONS

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

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

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

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

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

 Route planning andoptimization

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

46
 ANNEXURE 1
BIBLOGRAPHY
Books -
 James Evans, Supply chain management, Tata McGraw hills 3rdedition p.n. 405
to 450
 Alberta Russel,Supply chain management, Wiley publication, 1st edition p.n. 1 to
50.
 John T. Mentzer ,Supply chain management Tata McGraw hills 4thedition p.n.
65 to 90
 Harland ,C.M.(1996) Supply Chain Management, Purchasing & Supply Chain
Management, Logistics, Vertical Integration, Material Management & Supply
Chain Dynamics. Excel books, p.n. 354 to370.
 Operations management along with supply chain management by Russell and
Taylor.
 Upendra Kachru, Exploring the supply chain theory and practices, Tata McGraw
hills,p.n.210 to 250.

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

47
 ANNEXURE 2
QUESTIONNAIRE
Name of Employee : ……………………………………………………………….
Name of Company :……………………………………………………………….
Address :……………………………………………………………….
……………………………………………………………….
Country :………………… Tel. : ……………………….
ContactPerson :……………………………………
Position in company :……………………………………
E-Mail :……………………………………
SectorTypes :Manufacturing Service Both
Industry :Food Automotive Other (define)
Noof Employees : Turnover 2010:

1. How do you manage your supplychain?

Close partnership with suppliers
JIT supply
Outsourcing
Many suppliers
Holding safety stock
2. How successful do you think is your company in managing its supply chain ingeneral?
* Not successful atall
* Not successful
* Somewhat successful
* Successful
* Verysuccessful
3. Does your company have a separate logistics department?
YES NO
4. Does your company have a clear logistics strategic plan?
YES NO

48
5. What types of systems are currently in use in your company to support Supply Chain
Management?
Subcontracting
3PL
Supply Chain Benchmarking
Vertical integration
6. What types of systems do you plan to implement in the near future (within the next 2
years)?
E-procurement
EDI
Outsourcing
Subcontracting
Plan strategically
7. How satisfied are you with the current public policy regarding SCM andIT?
*Satisfied
*Very satisfied
*Same what satisfied
Not satisfied
8. Is supply chain management having all the address of the developer branches of the
company?
Yes No
9. Rate the working strategies of supply chain management department on the basis of the
currentprograms?
* Outstanding
* Excellent
* Good
* Average
10. Is the supply chain management department is having sufficienttransportation?
* Yes
* Not sufficient

49
11. According to the current growth process of the organization, which of the following
needs much attention and progress to boost theproduction?
* Operationalactivities
* Tacticalactivities
* Current programmingstrategies

12. Choose the right option, where the supply chain department is facing problem in
taking care of the rawmaterial?
* Duringstorage
* Packaging
* Testing ofpackaging
* Evaluation of defective rawmaterial
13. How do you rate the delivery activity of thedepartment?
* Excellent
* Veryeffective
* Good
* Average
14. Is there any case recorded by the supply chain department in which the production
department complained late delivery of rawmaterials?
* Yes
* No

50