TABLE OF CONTENT

1. Introduction…………………………………………………………………..1

2. Supply chain Drivers…………………………………………………….….4

3. Supply chain of Amul Milk……………………………….…………….…..5

4. Supply chain of Gopal Biscuits.………..………………….………….…..8

5. Supply chain of Namdhari Fresh………………….…….………………...9

6. Supply chain of Garg Enterprises………………………………………..10

7. Supply chain of Motorola- RAZR Phones..……………………………..11

8. Key observations and learnings………………………………………....12

9. Conclusion…………………………………………………………………...12

References……………………………………………………………………..

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INTRODUCTION

RETAIL SUPPLY CHAIN

The retail supply chain is dealing with the consumer and the customer
directly. So everything in the retailer’s Supply Chain strategy needs to be focused
on the customer. Like any Supply Chain, Retail Supply Chains have their own
unique challenges. They’re different from the Supply Chains you might see in
industrial companies or wholesaling companies and they have very different
dynamics. So what makes retail supply chains so different? Well that of course
depends on the type of retailer we’re talking about, because the needs of
hardware retailers will vary from those of a fashion retailer. But in general terms,
retailers need to deal with; very broad product ranges, ranges that change,
perhaps by season, possibly high levels of promotional activity, a broad supplier
base, maybe some long supply lead times if there is a high degree of importing.
To compete with these, the retailer’s supply chain needs to be very flexible,
responsive and low cost if the market sector is highly competitive.

In terms of customer value, these are the conveniences that retail

customers are looking for.

 Price - This needs to be competitive.

 Range - The customer expects a 1 stop shop for all their needs.

 Service - Customers will quickly go elsewhere if service is consistently

poor.

 Quality - should be good.

 Availability - It is probably one of the key customer expectations,

particularly for advertised or promotional products.

 Convenience is also a key component.

 The Brand can be important depending on the retail sector.

 Fashion can play a key role.

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 Like any Supply Chain, Retail Supply Chains have their own unique
challenges. They’re different from the Supply Chains you might see in industrial
companies or wholesaling companies and they have very different dynamics.

So for the retail Supply Chain in particular, improving service and reducing
cost is all about trade offs and taking an end to end view of the Supply Chain.

Material

Funds

Manufactur Distribut
Retailer Customer
er or
Info

FLOWS OF SUPPLY CHAIN

So for those managing the retail supply chain, things can often be more
complicated than in other industry sectors. The dynamics and trade offs can be
different, and depending on the particular retail sector and product range, a
number of very different approaches may be needed to meet the needs of
different value streams.

In the organized retail market in India the role of supply chain is very
important for the Indian customer demands at affordable prices a variety of
product. The infrastructure in India in terms of road, rail, and air links are not
sufficient. And so warehousing plays a major role as an aspect of supply chain
operations. To overcome these problems, the Indian retailer is trying to reduce
transportation costs and is investing in logistics through partnership or directly.
The Indian organized retail sector is growing so the role of supply chain becomes
all the more important. It should become all the more responsive and adaptive to
customers demand. There is also need for the supply chain to be more cost
efficient and collaborative to win the immense competition in this sector.

So in summary, retail supply chains are different. They need to be very

focused on the customer’s needs and on reducing costs, but most importantly,
they need to be managed from an end to end perspective so as not to sub
optimize any one function.

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SUPPLY CHAIN IS BASED ON SIX DRIVERS, BROADLY DIVIDED IN TWO
DRIVERS:

Logistical Drivers:

1. Facilities

2. Inventory (Stock)

3. Transportation

Cross Functional Drivers:

4. Information

5. Sourcing / purchase

6. Pricing

All these six drivers are measured on the basis of efficiency and responsiveness.

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AMUL MILK

Amul is a unique company. Amul is a company that

strongly pushes itself as an Indian company. For its own
sake it works well because it relies extremely heavily on
domestic sales. Domestically the company is strong and
one that seems to be growing day by day.

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), Amul’s main

manufacturing facilities are at Anand, Gujarat.

Members: 13 district cooperative milk

producers' Union

No. of Producer Members: 2.79 million

No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million liters per day
Milk collection (Total - 2008- 3.05 billion liters
09):

Milk collection (Daily Average 8.4 million liters

2008-09):

Amul’s only source of raw material is Village Milk societies. Milk is brought from
VMS every morning and evening. About 11.22 million liters of milk is collected
per day. The milk is then sent to the dairy plant with the help of trucks/ containers
equipped with deep-freezing facility. Amul plant is indigenously worked out with
facilitation of various production processes and production of multi product under
one plant. The total plant is spread over 2.27 kms. Separate buildings are
provided with required arrangements of machine tools handling and computer
connection through the control room to fit for varying product manufacturing
departments. The plant is engaged in producing milk, ghee, ice-creams and milk
powder. There are 4 production department and packaging pertaining to each
product. In one department which is engaged in producing milk, this milk is
processed.

THE ENTIRE PROCESS OF MILK IS DONE IN FOLLOWING MANNER:

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COLLECTION OF RAW MILK

Electronic Milk Test Methyline Blue Reduction Test

PASTEURIZING AND STANDARDIZATION PROCESS

(In pasteurizing the milk is heated on 72 C to 76 C for 15 seconds and then it is
immediately cooled below 4 C and in standardization the milk is bifurcated in 3
categories varying according to that FAT & SNF contents.)

SEPARATION PROCESS
(Separator machine separates two kinds of products, Skimmed milk & cream)

QUALITY CHECK
(Pressurized milk is sent for quality check)

PACKAGING PROCESS
(There are huge pipelines in the packaging station behind each of them 12 polyfill
machines are there from which the material to pack comes out.)

COLD STORAGE
(Milk is stored at temp. ranging from 5C to 10C)

DISTRIBUTION NETWORK

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 Dairy Plant of GCMMF is located at Anand, Gujrat. The company controls its
marketing operation through five regional offices. The regional offices are located
at:

• Ahmedabad
• Mumbai
• New Delhi
• Kolkata
• Chennai

There are about 45 distribution offices in all and under each branch there
five to seven distribution offices. There are 3900 distributors of GCMMF
located all across the country. This network is being extended to cover all
related field offices in the network. The GCMMF cyber store delivers AMUL
products at the doorsteps of the consumers in 125 cities across India. Milk is
distributed with the help of trucks/ containers equipped with deep-freezing
facility.

DISTRIBUTION CHANNEL OF GCMMF IS BROADLY DIVIDED IN THREE

CATEGORIES:

• A zero level of channel also called direct marketing channel consists of a

manufacturer selling directly to the final customers.

• A one level channel; contains one selling intermediary such as retailer to

the final customers.

• A two level channel; contain two intermediaries are typically wholesaler

and retailer. A three level channel are typically wholesaler, retailer and
jobber in between.

GOPAL BISCUITS

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 Gopal Agro pvt. Ltd. is a manufacturer of biscuits and confectionery
products. They are Operational since last 2 years. The main manufacturing
facilities are at Rewari, (Haryana).

RAW MATERIAL SUPPLIER:

The raw material such as Wheat Flour, Sugar, Partially Hydrogenated

Edible Vegetable Oils, Invert Syrup, Leavening Agents, Salt, Milk Solids,
Emulsifiers and Dough Conditioners, Contains Added Flavours and Glucose etc.
and packaging materials etc. are procured from Local vendors. Few of local
vendors are Aman deep flour mills ltd. for wheat flour and maida and Kamal
depot for packaging material they are the regular vendors of Gopal Biscuits.

The manufacturing plant is equipped with 2 biscuit baking machines and

bread baking machines along with the packing machines, rotary rack oven, tin
decorating barrel/pan and drying oven. The manufactured product is stored in
carton in well prepared warehouse. All kinds of protection against rain, moisture,
rodents and insects taken by them.

DISTRIBUTION NETWORK:

The company controls its marketing operation through its regional offices
located in Gurgaon and Rohtak. They sell directly to the final customers and also
through the 2 intermediary such as distributors and retailers. At warehouse
material is checked for damage and loaded in LPT and unloaded at distributor
site. Normally 150-160 boxes are delivered in one full truck load (LPT) to
distributors. They use 3 wheelers as a transportation mode.

COMPANY HAS 3 DISTRIBUTOR IN HARYANA AND 5 DISTRIBUTORS IN

RAJASTHAN. THE MAJOR DISTRIBUTORS ARE:

• M/s Jui Enterprise

• M/s Laxmi Agencies
• M/s Sai distributor
• M/s Bhart Bakery

NAMDHARI FRESH (Fruits and Vegetables)

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Namdhari fresh is a unit of Namdhari seeds. It is started in 2000, at Bidadi near
Banglore. The majority of Fruits and Vegetables are produce in their own Farms
and also under contract farming with 2000 farmers. They harvest and transport
on daily basis as per the demand. Before supplying they do quality check, weight
and then transport in refrigerated vehicles to pack house. The Fruits and
Vegetables are sorted in pack house then grading is done on the bases of size,
appearance, color, firmness, damage etc. and packing is to be done into SKU’s.
The normal temperature of pack house is 20 C.

Supply chain of Fruits and Vegetables under Own production

Supply chain of Fruits and Vegetables under contract Farming

THEY SUPPLY TO THREE SEGMENTS:

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 • Retail
• Institution
• Export

RETAIL – Namdhari fresh has14 retail stores in Banglore. The packed produce
is placed in crates and stored in cold chambers. For easy identification, packing
and transportation, they print name on crates. These crates are then transported
to stores in refrigerated vehicles by 6 a.m. In case of any change, information is
conveyed by mail or phone and unsold stock information is conveyed to adjust to
next day’s supply.

EXPORT – Packing is done same as for retail store but the transportation mode
is done by ship or air.

INSTITUTION – supplying fresh vegetables and fruits to customers like star

Hotels and retail chains. Packing is done same as for retail store but the
transportation mode is done by rail / air / road.

GARG ENTERPRISES – WHEAT FLOUR

Their main manufacturing unit is in Bhiwadi, Manesar (Haryana). They

supply atta (flour).

RAW MATERIAL

Procured from the Maheshwari Roller Flour Mills Pvt. Ltd. of Ghaziabad.
Vendor supply wheat in jute bags and trucks are used as a transportation mode.

PROCESS OF WHEAT MILLING

THE WHEAT IS PROCESSED IN A FLOUR MILL:

• The first step in this process is the cleaning of wheat which is done using
specially designed machines in which the impurities like straws, weeds,
etc. are removed
• The kernel of the wheat grain is moisturized in a process known as
tempering which makes the bran coat tough, thereby enabling it to
separate from the endosperm in a complete manner
• The wheat that has been tempered is then sent for grinding, where the
kernel is passed through a series of rollers to help it crack and ground.
After is has passed through each set of rollers, the wheat is sifted to
separate the fine flour particle from the endosperm particles and bran.

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 • The wheat flour is bleached and the Vitamin B elements like thiamine,
riboflavin, niacin, etc. as well as iron, are added to it before it is packed to
be sold to the consumers.

For packaging they use plastic bags and these packed bags are
loaded on trucks and supplied to the local unorganized retailers and further
these retailers put their own labels on bags and sell them to the customer.

Local retailers are as follows:

Arpit enterprises and Sakshi retailers, both are located in Bhiwadi.

MOTOROLA - RAZR PHONES

The mobile phone industry is characterized by new,

unique, and complex technologies. It is extremely difficult to
predict demand and ensure adequate capacity to supply and
produce. Motorola mitigate the risk of short product cycles and
the challenges posed by rapidly changing technologies by
improving our lead times and by forming development
partnerships with suppliers.”

MARKETING AND DEMAND GENERATION

“Marketing and demand generation are coordinated from Motorola

Chicago-area headquarters with its sales offices and network, covering 26
countries around the globe. Motorola marketing and demand generation teams
work closely with the various communication providers (for example, Verizon, T-
Mobile, Sprint, AT&T) to manage fluctuations in demand.”

SOURCING AND ASSEMBLY

“RAZR components are sourced from various locations in Asia (China,

Japan, Taiwan), and the packaging is sourced from Texas. To ensure continuous
supply of commodity materials, Motorola dual source and partner with suppliers
to ensure priority status. Except for the battery, charger, and packaging, RAZRs
are assembled in China. The communication providers offer various types of
customization such as colors, logos, and software, which introduce some risk into
the supply chain. The providers are extensively integrated in our supply chain

11
planning process, which helps Motorola mitigate some of the risks related to
product customization.”
DISTRIBUTION NETWORK:

“For the U.S. market, they ship or air all RAZR’s to the Motorola
distribution center in Fort Worth, Texas. The devices are picked up by the various
communication providers and delivered via truck to their respective distribution
centers. RAZRs finally reach customers through communications providers’
stores or at retail outlets.”

KEY OBSERVATIONS AND LEARNINGS

I observed that in supply chain management efficiency and cost

effectiveness throughout the system is required. I discussed both renowned
companies like Amul and Motorola and small companies like Gopal biscuits and
Garg Enterprises and observed the difference in efficiency and effectiveness in
supply chain in both the segments. In SCM Every facility that impacts cost need
to be considered. It involves multilevel of activities, like Strategic - Tactical –
Operational. Supply chain strategy linked to the development of the firm. I also
learnt the importance of supply chain in an organization and how these functions
interact and affect the entire supply chain. I also discovered that supply chain
management has long term benefits. Firm with large system inventories, many
suppliers, complex product assemblies and highly valued customer with large
purchasing budgets have the most to gain from the practice of supply chain
management.

CONCLUSION

Supply chain management is an exploding field, both in research and

practice. Through better information engineering supply chain improvements
have resulted in a reduced bullwhip effect, lower inventory levels, reduced
logistics cost. However, firms who operate in global environment and deal with
multiple supplier and customers are required to manage inventories in new and
innovative way.

References: Principles of supply chain management by Joel. D. Wisner

www.scribd.com,
www.motorola.com/.../US.../about-our-supply-chain,
www.slideshare.com

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PROJECT

13
 ON

STUDY OF SUPPLY CHAIN OF 5 RETAIL PRODUCTS

Submitted by:

Sadhna Yadav

Submitted to:

Mr. Uppal

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