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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

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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

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER

HEAD OF DEPARTMENT

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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 Companys 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
INTRODUCTION

PROFILE OF THE COMPANY

NEED FOR THE STUDY

II

REVIEW OF LITERATURE

10

III

OBJECTIVES OF THE STUDY

21

IV

RESEARCH METHODOLOGY

22

DATA ANALYSIS AND INTERPRETATION

24

FINDINGS OF THE STUDY,

39

SUGGESTION AND RECOMMENDATIONS

41

CONCLUSION

42

LIMITATIONS OF THE STUDY

43

SCOPE FOR THE FUTHER STUDY

44

QUESTIONNAIRE

45

VI

VII

VIII

BIBILIOGRAPHY

47

LIST OF TABLES

TABLE NO.
5.1.1

NAME OF THE TABLE

SEX OF THE RESPONDENTS

PAGE NO.
24

5.1.2

OCCUPATION OF THE RESPONDENTS

25

5.1.3

CONSUME PONLAIT MILK

HOW FREQUENT DO CONSUME

26
28

5.1.6

MILK CONSUMPTION
PURCHASE MILK MADE FROM

5.1.7

LEADING SUPPLIER IN MILK

30

5.1.8

31

5.1.9

PRICE OF PRODUCT
OTHER THAN MILK WHICH PRODUCT DO YOU

5.1.10

RESPONDENTS PREFERENCE

33

5.1.11

34

5.1.12

PONLAIT IS AVAILABLE SUFFICENT IN MARKET

SATIFACTION LEVEL

5.1.13

PREFERENCE OTHER THAN THE PONLAIT

36

5.1.14

DEFECTS IN PONLAIT MILK

37

5.1.15

ANALYSIS BY CORRELATION

38

5.1.4
5.1.5

27
29

32

35

LIST OF CHARTS

CHART NO.

NAME OF THE CHART

PAGE NO

5.1.1

SEX OF THE RESPONDENTS

24

5.1.2

OCCUPATION OF THE RESPONDENTS

25

5.1.3

CONSUME PONLAIT MILK

HOW FREQUENT DO CONSUME

26
28

5.1.6

MILK CONSUMPTION
PURCHASE MILK MADE FROM

5.1.7

LEADING SUPPLIER IN MILK

30

5.1.8

31

5.1.9

PRICE OF PRODUCT
OTHER THAN MILK WHICH PRODUCT DO YOU

5.1.10

RESPONDENTS PREFERENCE

33

5.1.11

34

5.1.12

PONLAIT IS AVAILABLE SUFFICENT IN MARKET

SATIFACTION LEVEL

5.1.13

PREFERENCE OTHER THAN THE PONLAIT

36

5.1.14

DEFECTS IN PONLAIT MILK

37

5.1.4
5.1.5

27
29

32

35

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

1.1.1

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 worlds 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

Registred as The Pondicherry Cooperative Milk Supply Society Ltd

1955

Foundation stone laid

1968

Dairy Plant Commissioned 10000 ltrs capacity

1971

Cattle feed Plant commissioned

1971

Registred as The Pondicherry Cooperative Milk Producers Union Ltd

1973

Artificial Insemination implemented

1984

Dairy Plant Expanded 10000 to 30000 ltrs capacity

Urea molasses plant implemented

1991

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

1987&1988

D.Helper/AI

Driver

Fodder
Dev.Asst
D.Helpers

Tech./
Sr.Asst

Supdt
(Store/
Prodct/Tech
)

Supdt (P&I)

Extn (Asst)
Sr.
Asst/Typist

DM (P&O)

DM (P&I)

Helpers

Clerical
Assts

Sales
Supervisor

Supdt
(Mktg)

AM (Mktg)

D.Helpers

Senior
Assts

AM (CFU)

D.Helpers

DA
(Bact/chem)

AM (QC)

Managing Director

ADMINISTRATOR

Cashier

Sr. Assts

Supt.

DM
(Accts)

D.Helpers

Driver

Sr.Assts

Supdt
(Adm)

AM
(BMC)

Steno

PA to MD

DEO /
Asst.

MIS (O)

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 dont 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 winwin 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
5) 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.8):
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
ponlait.

Consumer in

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.
4.4 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)

(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

MALE

FEMALE

NO OF
RESPONDENTS

PERCENT

35

70.0

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

Sex

60

Percent
40

20

0
male

female

Sex

TABLE 5.1.2
OCCUPATION OF THE RESPONDENTS
S.NO
1

OPTIONS

Business

NO OF
RESPONDENTS

PERCENT

10.0

Employee

21

42.0

Student

22

44.0

Farmer

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

Occupation

50

40

30
Percent

20

10

0
Business

Employee

Occupation

Student

Farmer

TABLE: 5.1.3
DO U CONSUME PONLAIT MILK
S.NO
1
2

NO OF
RESPONDENTS

PERCENT

40

80.0

No

10

20.0

TOTAL

50

100.0

OPTIONS
Yes

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

DO U CONSUME PONLAIT MILK

80

60

Percent
40

20

0
Yes

No

DO U CONSUME PONLAIT MILK

TABLE: 5.1.4

IF YES HOW FREQUENT DO CONSUME

S.NO

OPTIONS

1
2
3
4
TOTAL

Weekly Once
Weekly Twice
Weekly Thrice
Regularly

NO OF
RESPONDENT
S

PERCEN
T

15
4
6
25
50

30.0
8.0
12.0
50.0
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

IF YES HOW FREQUENT DO CONSUME

60

50

40

Percent
30

20

10

0
Weekly Once

Weekly Twice

Weekly Thrice

IF YES HOW FREQUENT DO CONSUME

TABLE: 5.1.5

Regularly

MILK CONSUMPTION
S.NO

OPTIONS

NO OF
RESPONDENTS

PERCENT

23

46.0

Whether you will go in search of your

preferred brand.

You consume what ever brand

available from where you consume

20

40.0

You will not consume if your preferred

brand is not available

14.0

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

MILK CONSUMPTION
50

40

Percent
30

20

10

0
Wheather you will go in search
Of your preferred brand.

You consume what ever brand

Available from where you
Consume

MILK CONSUMPTION

TABLE: 5.1.6

You will not consume if your

prefered brand is not available

PURCHASE MILK
S.NO

OPTIONS

From grocery shop

2
3
4

NO OF
RESPONDENTS PERCENT
15

30.0

From ponlait parlours

11

22.0

From local merchant

17

34.0

From other sources

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

PURCHASE MILK
40

30

Percent
20

10

0
From grocery shop

From ponlait parlours

PURCHASE MILK

From local merchant

From other sources

TABLE: 5.1.7
LEADING SUPPLIER

S.NO
1

OPTIONS
Yes

NO OF
RESPONDENTS

PERCENT

44

88.0

12.0

50

100.0

No

TOTAL

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

LEADING SUPPLIER

100

80

Percent
60

40

20

0
Yes

No

LEADING SUPPLIER

TABLE: 5.1.8
PRICE

S.NO

OPTIONS

Low

3
4

NO OF RESPONDENTS

PERCENT

13

26.0

15

30.0

Normal

20

40.0

Very low

4.0

TOTAL

50

100.0

High

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

PRICE

40

30

Percent
20

10

0
High

Low

PRICE

Normal

Very low

TABLE: 5.1.9
OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME
S.NO

OPTIONS

Ghee

NO OF RESPONDENTS

PERCENT

18

36.0

Khoa

14

28.0

Flower milk

18.0

Curd

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

OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME

40

30

Percent
20

10

0
Ghee

Khoa

Flower milk

Curd

OTHER THAN MILK WHICH PRODUCT DO YOU LIKE TO CONSUME

TABEL: 5.1.10
WHY DO PREFER PONLAIT BECAUSE OF ITS
NO OF
RESPONDENTS

PERCENT

10

20.0

24

48.0

Brand name

14.0

All the above

18.0

TOTAL

50

100.0

S.NO

OPTIONS

Quality

3
4

Price

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

WHY DO PREFER PONLAIT BECAUSE OF ITS

50

40

30
Percent

20

10

0
Price

Quality

Brand name

All the above

WHY DO PREFER PONLAIT BECAUSE OF ITS

TABLE: 5.1.11

WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

S.NO

1
2

OPTIONS
Yes
No

TOTAL

NO OF
RESPONDENTS

PERCENT

39

78.0

11

22.0

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

WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

80

60

Percent
40

20

0
Yes

No

WHETHER THE PONLAIT IS AVAILABLE SUFFICENT IN MARKET

TABLE: 5.1.12

CUSTOMER FOCUS ON SATIFACTION LEVEL

S.NO

OPTIONS

NO OF RESPONDENTS

PERCENT

15

30.0

19

38.0

Neutral

14.0

Dissatisfied

18.0

TOTAL

50

100.0

Highly satisfied

Satisfied

3
4

Source: Primary Data

Inference: From the above table it is inferred that out of 50 Respondents.38% of the
Respondents are satisfied, 30 % Respondents are highly satisfied.

CHART: 5.1.12
CUSTOMER FOCUS ON SATIFACTION LEVEL
40

30

Percent
20

10

0
Highly satisfied

Satisfied

Neutral

Dissatisfied

CUSTOMER FOCUS ON SATIFACTION LEVEL

TABLE: 5.1.13

WHAT DO YOU PREFER OTHER THAN THE PONLAIT

S.NO
1
2

OPTIONS

NO OF RESPONDENTS

PERCENT

30

60.0

Russi

20

40.0

TOTAL

50

100.0

Arokiya

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

WHAT DO YOU PREFER OTHER THAN THE PONLAIT

60

50

40

Percent
30

20

10

0
Arokiya

Rusi

WHAT DO YOU PREFER OTHER THAN THE PONLAIT

TABLE: 5.1.14

DO YOU FIND ANY DEFECTS IN PONLAIT MILK

S.NO
1
2

NO OF
RESPONDENTS

PERCENT

19

38.0

No

31

62.0

Total

50

100.0

OPTIONS
Yes

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

DO YOU FIND ANY DEFECTS IN PONLAIT MILK

60

Percent
40

20

0
Yes

No

DO YOU FIND ANY DEFECTS IN PONLAIT MILK

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

-6

-30

25

36

No

20

31

-5

-30

25

36

Total

50

50

-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 respondents 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
informations from the respondents. After gathering the informations, 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 informations.
Illiterate customers are also given informations.
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

05. Occupation

06. Income group

2000 to5000 per month
5001to 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

09. While going for Milk consumption

a) Weekly once
b) Weekly twice
c) Weekly thrice
d) regularly

Male/Female

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

12. Does the price of the ponlait is

a) High
b) Low
c) Normal
d) Very low
13. Other than the milk which product do you like to consume
a)Ghee
b)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)200ml
b)500ml
17. What type flavour do you prefer
a)Special

b)General

18. Are you satisfied with the ponlait

19. What is your satisfaction level
a) Highly satisfied
b) satisfied
c) Neutral
d) Dissatisfied

: Yes/No

e) Highly dissatisfied
20. What do you prefer other than the ponlait ?
a)Arokiya
b)Russi
21. Does ponlait milk is good your health?
22. Do you find any defects in ponlait milk?
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

:
: Yes/No
: Yes/No