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M/s. BioFields Impex Pvt Ltd.,
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A detailed end term project report of the role of
a Stockiest and use of IT for Fertilizer,
Pesticide, and Seeds Industry.
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cvbnmqwertyuiopasdfghjklzxcvbnmq PGDM – IB,09-11
Term - II
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Submitted by: Group no 5
Ankita (05), Deepak (17), Manas (29), Ranjan (41), Sourav (53)
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M/s. BioFields Impex Pvt Ltd.,
Acknowledgement
First we would extend our honest thank to our faculty Prof. Rupesh
Kumar Sinha for giving us the opportunity to conduct this project.
We also thank one and all who have helped in making key decisions and
discussion which allowed us to complete this project in time successfully.
Last but not least our families for extending their support.
We also thanks for the help from Two another Groups, Mr. Vijay (Group no
-1) & Mr. Anoop (Group no- 9).
: Members of Group 5
Ankita
Deepak
Manas
Ranjan
Sourav
Table of Contents
Executive Summary
Concept
In the current climate, controlling IT costs is more important than ever - and yet, at the
same time, businesses need a rich, reliable, secure IT infrastructure to stay competitive, this has
inspired us to come up with an efficient business plan for stockiest, that would make them self-
sufficient and keep them engaged in success story of any manufacturing and selling company by
switching over to Intelligent-Business (IB) a new way of doing Business.
Drivers
In our country over 70% of the total population live in villages. There are states like U.P,
M.P, Bihar, Rajasthan and Orissa where rural population varies from 80 to 90 per cent.
Agriculture and agriculture related activities contribute to about 75% of the income in rural
areas.
The general impression is that the rural markets have potential only for agricultural
inputs like seeds, fertilizers and pesticides, cattle feed and agricultural machinery. More than
50% of the national income is generated in rural India and there are opportunities to market
modern goods and services in rural areas and also market agricultural products in urban areas.
Infact it has been estimated that the rural markets are growing at five times the rate of urban
markets. About 70% of bicycles, mechanical watches and radios and about 60% of batteries,
sewing machine and table fans are sold in rural India. At the same time the sales of color
television, washing machines, refrigerators, shampoos, face cream, mosquito repellent and
tooth paste are very low and there is tremendous potential for such products in rural markets.
While rural markets offer big attractions to the marketers, it is not easy to enter the
market and take a sizeable share of the market within a short period. This is due to low literacy,
low income, seasonal demand and problems with regards to transportation, communication
and distribution channel. Further there are different groups based on religion, caste, education,
income and age. There is a need to understand the rural markets in terms of buyer behavior,
attitudes, beliefs and aspirations of people.
Business Proposition
In order to find the effective solutions from Information technology for stockiest in
fertilizer, seed and pesticide industry, The Basic expectations from IT would be with respect to
the following issues, based on the co-contracting type of relationship in supply chain.
Business Structure
The business structure is based on the idea of Intelligent-Business - IB and a new way to
find each other’s areas of expertise, projects, and relationships when we are a stockiest, before
we can describe and find the exact way of managing a business for stockiest first we need to
understand the role and stockiest So we have classified the role of stockiest, in two
classifications i.e., Efficiency and Functions.
1. Material Acquisition,
2. Material Movement, and
3. Material Storage.
1. Shipping
2. Purchasing
3. Warehousing
4. Order Processing
5. Inventory Control
After knowing the proportion and basic role of a stockiest now we discuss the structure
which would be based on Co-contracting. Co-contracting is a term used to describe alliances
between organizations that have - Long term relationships but do not merge together, they
rather transfer some Equity (ownership), technology, Information, and People for maximizing
profit with service of efficiency. First we describe the Structure based on the relationship with
the manufacturing unit, Marketing Department, Stockiest, retailer, sales department and the
End users. So here is a brief diagram of a hierarchical structure.
Once the business structure is done and having the responsibilities describe in separate
departments and the above roles give a detailed description about the role of the stockiest,
now we focus on Customer profile and Organizational Structure for smooth flow of information
to have a clear and efficient operation within the organization so which proportionately have
an effect on other organization in supply chain. A Group of Companies right from Production
house (Bio-Utilitario Private Limited.,) and have a marketing Company, Later the owner ship is
transferred to Stockiest (BioFields Impex Private Limited., and the retails from different villages.
Customer Profile
Good Exceptional
Financial Business Good Credit
Management customer
requirements Experience history
skills experience
The selection of the retailer is at the sole discretion of the stockiest, as per the
fulfillment of the requirements by the applicant.
Organizational Structure
The business model is based on the idea of Intelligent-Business – IB and we are focusing
on the role of stockiest who is M/s. BioFields Impex Pvt Ltd., who control the Distribution and
logistics of a district in Karnataka i.e., Udupi District, and the District is divided in to three taluk
which represent three zones based on the sales organization to get maximum flow of
information and we have further divided in to Three verticals based on the Products offered
also known as Product Verticals for better accountability and deep understanding of the
expertise area ;
1. Seeds Vertical
2. Fertilizer Vertical
3. Pesticide Verticals
Under the Operations department the different verticals will have a similar
Organizational structure, as we are focusing on one warehouse for the entire district to reduce
the cost of warehousing and the Human resource. The warehouse would be as mentioned in
the following diagram with a headcount of 43 employees.
The roles and responsibilities along with the qualifications required for the Designations
are as follows:
In the initial stages the plan is to start at a location which is well connected to all
the villages, with well connected road and a hub based on the hub and spoke model, the major
infrastructure requirement for starting this venture is the space for administration and the
warehouse, which would be at SEZ1, Padubidri of Udupi District which is well connected with
road, rail and sea and availability of water and also a Tier II city, Office and warehouse situated
at the same place, and Other requirements include furniture and computers, chairs warehouse
equipments and a server. The premises would be purchased so as to have a better application
of cash flow and better Fund flows. The approximate details of the quantities required have
been specified in the financials section.
Business Process: A specific ordering of work activities across time and place, with a
beginning, an end, and clearly defined inputs and outputs. Business processes are the structure
by which the organization physically does what is necessary to produce value for its customers
and are broadly defined across functions/departments.
Process Model: A representation of one or more processes and their associations that
an enterprise performs. Process modeling is a mechanism for describing and communicating
the current or intended future state of a business process.
Business Process Model: A mechanism for describing and communicating the current or
intended future state of a business process.
With the aid of Business Process Development, complex activities are broken down to
simple segments and then each segment is overhauled, a module put in place to get the best
out of the resources available along with a monitoring system for easy troubleshooting. Finally
all working segment are then synchronized to create renewed and efficient working model, for
this we have adapted to the implementation of SAP Business One ERP2 suite.
1
Special Economic zone
2
Enterprise Resource Planning
The Business process development and Execution is done through an intensive research
of how today’s business works and what are the factors considered to start a business with a
scope of improvement and Internal Audit control, The Basic Principle is “Intelligent-Business”
which is a focus on all the departments and are interlinked to one another through the
Information systems to indulge in better efficiency and Maximize Profit through Minimizing
cost through time taken for execution or Perform.
Object Modeling
As stated earlier, our intent is to progress from the producer approach towards a service
centric approach with representation on infrastructure. To align the model more explicitly with
service representation, we can re-group the main entities so that the model reflects the
enterprise as a transaction between two roles – a Vendor and the Client.
IT Infrastructure Model
• Business Gateway Layer
• Interface Into Applications and Systems
• Partners, Employees, Suppliers, customers
• Application Layer
• Programs that implement and automate business processes
• CRM, ERP, PROJ MGMT, ACCOUNTING, INVENTORY MGMT
• Physical Layer
• Tangible Building Blocks.
• HARDWARE: - Desktops, Mid-Range Systems, Mainframes Systems.
• Operating System: - Windows XP, Linux, UNIX.
• Physical Plant: - Cabling.
• Services Layer
• Intermediate and general purpose services upon which applications are built.
• Email Management, transport, ID management, Data Warehouses, Data
Recovery, General Security.
• Telecommunication Layer
• Provides connectivity between all Layers.
• LAN\WAN, ISP, WIRELESS.
Some other factors can be considered to include to better the service with the Stock
handling capacity Sales order processing ,warehouse management using mobile phones,
Weather information relates to sales forecasting, inventory planning , reduction in logistics cost
Use Of SMS for Pull of information, Low cost - Technology solution, Use a template for sending
SMS on weather information . Template can be pushed to Mobiles depending on season.
Template to include, district, taluk, crop, acreage, crop condition, weather, dam water levels.
Farmer level, distributor level information can be used for inventory movement.
Advance knowledge of weather coupled with field data on acreage under coverage, will help
fertilizer companies in inventory management.
The Warehouse manager can view different orders placed by each of the dealers and
the corresponding payments created by the dealers for the same, Once the dealer arrives at the
warehouse with the physical DD and DDFL, the warehouse manager can verify the same and
acknowledge physical receipt so that the payment is parked into SAP. The WM can then create
a delivery and delivery challan to enable the dealer pick up material from the warehouse.
This Kind of Business Process modeling and execution can be called as “Intelligent-
Business” Here is a sample Diagram of How “Intelligent-Business” put into practice.
3
Internet Warehouse Manager
Financials
Investment
INVESTMENT
Particulars Per Unit Total
Land and Building (in Area and Amount)
Land from KIADB (2 acres - 8093.746Sq MTR) 160.00 1,350,000.00
Includes registration and Licensing to KIADB
(Source: http://www.indiaproperty.com/property/IP446871/)
Building (Construction)
Shed 1 500,000.00
Shed 2 500,000.00
Shed 3 500,000.00
Office Building 600,000.00
Total Building Cost (with Electrifications) 2,100,000.00
Specification of Shed's
Dimension
width (Ft) : 50
Length (ft) : 150
Height (ft) : 16
Roof Pitch : 2:12
(source : BuildingsGuide.com reference number 693852010-01-04)
Machinery & Equipments/Tools
DG Set (onsite with installation) 1 no caterpillar make 80Kv 750,000.00
(source: caterpiller.com)
Hydraulic Pallet Truck (9no's) 7,250.00 65,250.00
Hand Truck (3no's) 11,890.00 35,670.00
(Source :
http://www.alibaba.com/buyeroffers/hand_pallet_truck/IN------------
----.html)
Computers
Desktops (12 no's) 17,000.00 204,000.00
Laptops (7no's) 27,000.00 189,000.00
Printers (8 no's) 4,500.00 36,000.00
Computer Furniture 175,000.00
Setting up the Office 200,000.00
SAP Business One (software suite) 175,000.00
Aqua Guard Water Purifier (2no's) 10,000.00
Air Condition (2 no's) 50,000.00
Advertising and marketing 50,000.00
Miscellaneous 150,000.00
Total Investment 5,539,920.00
(Total Amount required in words: Fifty Five Lacks Thirty Nine Thousand Nine Hundred and
Twenty Rupees Only)
The figures relating to the associated costs are an average for one single unit (are
expected to operate on similar line estimated)
Assumptions
All figures are considered at current market rates.(Based on Quotations and References)
Basic market conditions are assumed to stay constant through factors like inflation.
Profit Margin
The prices for each of the mentioned products and enlisted below for which we have
also specified the cost price, selling price with the Profit margin for each product. The prices are
in INR4.
Particulars Amount
Salary 259,200.00
Electricity Charges 6,000.00
Telephone and Internet Charges 9,000.00
Housekeeping 4,000.00
Packing Materials 5,000.00
Stationery 3,000.00
Staff Welfare 10,000.00
Miscellaneous 3,800.00
Total Variable Cost Per Month 300,000.00
4
Indian Rupees
While ascertaining the prices we have considered the market price of the competitors
and how we can create a Profit value chain in the process. In the Process to break even the
stockiest must have sales of atleast INR 64,00,000.00 In Words (Sixty Four Lacks Rupees Only)
Conclusion
The analysis have been made with continuous interaction with marketing personal to
cover the ground reality from their experience, At the time of final selection the location of a
town preference is judged on center of gravity basis and it’s accessibility to the local farmers.
This center of gravity simulation and accessibility features matched well from the Google Maps.
The potential of Information Technology is yet to be fully tapped in the major segment
of the fertilizer industry with respect to marketing activity, notwithstanding the need for quality
information for decision making. The fertilizer marketing activity involves flow of large volume
of information, movement of documents in addition to handling of millions of tones of fertilizer
material. Information technology can play an important role in improving the efficiency and
effectiveness.
5
Information Technology
Bibliography
Fertilizer use by crop in India-Food & Agricultural Organization of the united nation-Rome 2005
Distribution Network analysis for marketing of fertilizer – Mapasia 2002 – New Delhi
http://www.mvdb.virginia.gov/
http://www.krishiworld.com/html/field_crops11.html
http://www.sbsccsoftware.com/about.htm
http://www.agriculture-industry-india.com/national-seeds-policy/seed-distribution-
marketing.html
http://www.agriculture-industry-india.com/agriculture-products/
http://www.kumbangalore.com/Htmlpages/policy/162/index.htm
http://www.techno-preneur.net/technology/Project-Profiles/food/seed.htm
http://www.fao.org/docrep/009/a0257e/A0257E07.htm#fig5
http://www.knowledgebank.irri.org/GRCmanuals/default.htm#Protocol_for_seed_distribution.
htm
http://www.fao.org/docrep/009/a0257e/A0257E07.htm
http://www.mangalorechemicals.com/