SUPPLY CHAIN MANAGEMENT

Submitted by:- PGDM 11-13Akshay Jain Arunima PurohitBhupesh Sharma

A Comparative study of the supply chain operations of retail stores and traditional outlets in Jaipur.  

Retail Store- Saras Dairy

Traditional Outlet – Local Milkman

SARAS DAIRY

INTRODUCTION Towards fulfillment of the national objective of

making India self-sufficient in milk production, a small step was taken in March 1975 and Jaipur Zila Dugdh Utpadak Sahakari Sangh Ltd., Jaipur (popularly known as Jaipur Dairy)

It was registered under Cooperative Act 1965 to work in then Jaipur District. Initially this union did not have the processing facilities. It started with a modest beginning of procuring 250 liters of milk per day.

Supply Chain Operation Flowchart

Customer

Distribution Channel

Distributer Retailer

Manufacturers

Processing PlantRaw Material Supplier

Farmers Dairy coopt.society

RESOURCES INVOLVED Procurement of raw material /supplier:

Farmer's Organization, Input Services like Animal Health Coverage, animal breeding

programme, Supply of balanced cattle feed and improved high yielding

fodder seeds to the members, Cooperative institution building

Processing plant:

Processing facilities of the dairy plant presently include multidimensional activities

At the Dairy stringent hygienic standards are maintained

Distributor  Processed milk is then packed into different units in

hygienic plastic for the easiness of customer. It is then loaded into the transporting vehicles to various

outlets inside the jaipur and insulated vehicles are used for delivering outside the jaipur

Retailers: Jaipur Dairy sells its milk & milk products through a

network of over 4500 retail outlets spread over Jaipur city and nearby 100 towns.

Customers: Customers according to their need purchase the milk from

the nearest retail outlet  

LOCAL VENDORS:

Local vendors are those who serve the milk requirements. The supply chain includes direct serving to the customer. The customer approaches to the Milkman directly and either he serves at home or customer goes to the place of milkman for taking milk.

 

 The supply chain goes on like this:

 COMPARISON OF SUPPLY CHAIN OF BOTH:

Organized follows a set structure to supply products to customer whereas unorganized supply or serve directly to customer.

Cost in organized is high as to maintain and continue the smooth flow of supply chain whereas cost involved in this is negligible low

Proper storage options are there with organized system because they supply in bulk so they have to preserve the large amount of milk for timely supply.

Demand forecasting is proper in organized as they got feedback from customers regular, so less chances of wastage.

Lead time in unorganized is less as the market is very small.

Flow of information might be detractive as it flows through different levels.  

  ANALYSIS OF SUPPLY CHAIN OF ORGANIZED AND UNORGANIZED:

Organized:-

Highly technically oriented : use of various expert designers in the designing of channel. Quality is maintained: As there is quality check at each and every step . Availability is very easy and approachable: Due to effective supply chain the availability of milk is every

part of cities. Less chances of wastage due to proper storage system: As there is proper demand forecasting and storage Transportation cost is high: As the system is too large, the transportation cost is very

high. Grasp the opportunity if increased suddenly:.

Unorganized:

Small supply chain, direct supply to customer: As the supply area is very much limited, so directly supply to

the customer. No storage cost, but have to bear the cost of wastage in case if

customers refuse to take milk.

Low transport cost: As the area is very limited so very low or negligible.

Direct contact with end user: This will help a lot to forecast correct demand and feedback

about the product offered. This will enable the local vendors to make arrangements for the extra demand or less demand in before which prevents the closing stock on the day.

  

 RECOMMENDATION:

ORGANIZED:

Price Flexibility: if applied can be proved from beneficial to organization.

More of retail outlet would engage more of the customer. Home delivery should be provided to at least those areas

where demand is not that much that it would be feasible to open a BOOTH there.

UNORGANIZED:

More hygiene in quality emphasis is required for the customer retention.

Timely delivery and demand forecast are areas to work upon effective supply chain.

Better storage facility would reduce spoilage this reducing inventory damage.

THANKS