Employees survey

1. What are the challenges faced by OMFED in its supply chain?

Ans1. Milk Union
2. Packaging
3. Customer satisfaction
2. Do you think there is any scope for improvement in the supply chain? If yes ,
where and how?
AnsMarketing with agents should be improved.
3. What according to OMFED is the major reason for the 7-10% loss?
Ans1. Increase in cost of raw materials
2. More competitors in market like milky moor and kamdhenu
4. Are the delivery vans equipped with cold storage facilities?
AnsYes, cold storage van is available.
5. Is OMFED planning to adopt IS in its operations?
AnsHe says all the branches are computerised.
6. What are the types of technology used by OMFED for processing milk?
AnsThey used various methods in labs like pasteurisation.
They have also fixed their content in milk like fat content to 3% and fms to 8%.
Market study
1. What are the challenges faced by OMFED in its supply chain?
Ans

Milk is a perishable item, so it has to be made readily available to the

customer at the right time.

As OMFED is an organized Co-operative consisting of different village

societies and District Milk Unions, there come issues resulting from
maintaining consistent product quality throughout the procurement chain.

Though standardised and diligent care and precautions are taken during
milk testing at village societies there arise cases when the tester using
lactometer to test the viscosity of milk has been duped by addition of
cheap milk powder to increase the viscosity of milk.

Supply chain requires well-furnished and improved ware houses with

proper cold storage facilities and cold chain enabled vehicles.

Smoother functioning of channel gets suffered as the road infrastructure of

Odisha is concerned.

Certain areas in rural markets are yet untapped but if tapped can turn into
potential procurement areas.

Urbanized parts of Odisha can be a potential market for pasteurized and

packaged milk.

The perishability factor of milk somehow acts a s a hindering force to the

expansion plan as formulated by OMFED to penetrate into the Cities and
townships of the neighbourhood state of West Bengal such as Kharagpur,
Midinapur, Digha and Kolkata.

To tackle this issue, OMFED is planning for increasing the capacity of its
Balasore Dairy Plant and the Milk Unions that serve the Dairy plant. The
underlying reason is that Balasores geographical location is strategically
to serve the above mentioned places of West Bengal.

Another problem is of reverse supply chain. Any milk or milk product that
fails to get sold at retail outlets within the consumable period of the
product, it has to be brought back to the nearest dairy plants of the cooperative. This stands for an approx 7-10% loss for the company. So, it
becomes highly essential to effectively forecast the customers demands to
prevent undesirable losses.

2. Do you think there is any scope for improvement in the supply chain? If yes,
where and how?
Ans-

OMFED should follow an organizational structure emphasizing on quality issues

insisting its suppliers to have a consistent focus on quality.

There is a greater need to build awareness of quality among its suppliers.

There is a need for imparting the importance of ethical business practices to the
entities involved.

Steps should be taken overcome the problems such as lack of infrastructural facilities
by approaching the Government for allowing grants.

There is a need for cost optimization and enhancing the infrastructure facilities of
warehouse with cold storage.

For dairy products, quantity and quality are just analogous to muscles and bones. So,
the distributors must be properly educated to effectively forecast the demand and
thereby reduce the chances of volume or quantity loss.

The buffalo-based system should be promoted to improve dairying.

6. What are the types of technology used by OMFED for processing milk?
The process of pasteurization consists of two steps. One is chilled milk at 40 C is
rapidly heated to 720C in a few seconds and kept at that temperature for 15 seconds.

Then the milk temperature is brought down to 40C in 5 to 10 seconds. This process
kills or immobilizes all types of bacteria. Most of the harmful bacteria grow fast in a
temperature range of 300 to 500C. A few bacteria also grow at low temperature. The
above process results in killing and immobilizing all these types of bacteria. This
cannot be done at home because you cannot change the temperature of milk so fast.
Whole Cow Milk (W.C.M.) marketed by OMFED has 3 to 4% fat and 8 to 9% non fat
milk solids. This is standardized with minimum interference in natural milk. The
percentage of fat varies depending upon supply and demand of milk. By adopting this
procedure, OMFED is able to assure supply of milk in a fluctuating market. At the
same time the natural properties of milk, beneficial enzymes and proteins remain
intact. The flavour of milk also remains natural.