PROJECT DRAFT

SUBMITTED BY,

SAJIN SABU

T5,MBA

CETSOM
TITLE
Supply chain management of Milma

INTRODUCTION
Milk is being a complete food had its own important in the day to day life being. Milk cannot
substantiate with another product. It is essential for the growth of children and it is also an
important food for all age group. In our country possess about 18 percentage of the total
supply of milk in the world. There are companies in the country to produce milk and milk
products.

Milk is being important from the nutritional stand point since it contains nearly all the
essential constituents required in human diet in proper proportion. Milk supplies body
building proteins, bone forming mineral and health giving vitamins and essential amino acids
in fairly large quantities.

Milk is essential part of balanced diet. Large parts of populations in India are
vegetarians and therefore the importance of milk is still great. According to Nutrition
Advisory Committees of Indian Council of Medical Research “a balanced diet of an Indian
adult should include ten ounce of milk per day. Though India has 30 percentage of the cattle
wealth in the world and dairy per capita availability of milk estimated to be only five ounce
per day. This shows that actual requirements of the milk. The per capita milk available in the
country is just half of our requirements.

Milk may be defined as the whole, fresh, clean, lacteal, secretion obtained by the complete
milking of one or more healthy milk animals excluding that obtained within 15 days before or
5 days after calving. It must be practically free from colostrums and should contain minimum
prescribed percentage of milk fat and milk solids not fat.

Most of the milk produced in the country in from rural areas, small fanners who keep
usually one or two animals. There is no ready market for the milk on the village. At the same
time there is high demand for milk in urban areas.

In Kerala milk and milk products have high demand, the demand for the products
increase on festival seasons. At early stages, in the stage milk was supplied by local enjoyed
monopoly in the supply of pasteurized milk in the state, but after sometimes other
organisations started to enter in the field.

According to prevention of Food Adulteration Rules as far as Kerala is concerned

cow milk should contain not less than 3.5 percent fat and 8.5 percent solids not fat, where
buffalo milk should contain not less than 5 percent fat and 9 percent solids not fat.

Most of the milk produced in the country is from rural areas, small fanners who keep
usually one or two animals. There is no ready market for the milk on the village.
PROBLEM STATEMENT
In the present dynamic business environment, the level of competition in each sector is very
high. The top level management of organisations is striving to make their strategies better and
improvised so as to make a competitive advantage. In the diary sector, organisations can
create a competitive edge by incorporating distinct activities and methods in their supply
chain that add value and improve their operational efficiency. The project aims to analyse the
supply chain of Milma and its distinctive features that can be adopted by other firms in this
industry.

OBJECTIVES
 To understand the supply chain of Milma.
 To test whether customers are satisfied with the quality of the company’s products.
 To do SWOT analysis of the company.
 To test whether the marketing activities of Milma has an effect on the stocking of
products by the retailers.

LITERATURE REVIEW

In the present competitive era, supply chains within the food processing industry have been
subjected to many pressures in the light of globalization, food recalls, technological
innovations and decreasing consumer trust. Strategically, rather than competing within low
costs market segments, many food producers are following a differentiation strategy that
targets niche market segments like organic foods. Though, the food enterprises have
reworked on their supply chains but still a lot of work is requisite, especially in case of Dairy
industry that has evolved through consistent efforts in India. The prospects proposed by
intensive practices call for a comprehensive study about the potential that can be explored for
making existing Dairy supply chains more efficient. This study emphases on drafting a
supply chain framework where current trends in Dairy sector call for efficient, innovative and
competitive supply chains, and also to recognize inefficiency in the Northern region of India.
This study is based on the literature assessment of supply chain practices, and pilot studies
conducted in select Dairy industry & Cooperative. Findings of study reveal that the Dairy
sector need some significant improvements in the area of innovations, traceability,
information systems, and process integration so as to achieve their corporate goals.

Dairy industry plays a vital role in enriching the socio-economic status of rural India,
particularly in women empowerment. In general, either a structure or subcomponents of dairy
supply chain is discussed in the literature, but the rational (why, what, how) is missing.
Further, the structured-literature-review (SLR) of dairy supply chain management (DSCM)
practices is scarce. This paper presents an SLR of articles published in the context of DSCM
practices. The paper further assesses the extent to which the SLR approach can be applied to
DSCM so as to produce a consistent knowledge stock by evolving a context-sensitive study.
The key challenges discussed in reviewed articles are highlighted. Authors selected the
articles published in peer-reviewed journals and categorized the articles published in recent
eleven years into three main subjects of supply chain i.e. distribution management (DM), risk
management (RM), and decision-making strategies (DMS). The findings of this study show
that the food safety, product quality, and associated economic benefits in dairy industry can
be achieved through technological innovation, eradication of uncertainties, and introducing
the global SCM practices into lean and green initiatives.

RESEARCH METHODOLOGY

The work is to be done using the secondary data from various sources and primary data form
various retailers. The secondary data thus obtained is used to study the supply chain of
Milma.
In order to test whether the marketing activities of Milma has an effect on the stocking of
products by the retailer, Chi-square test can be done by taking the following hypothesis.
1) Null hypothesis(H0): Marketing activities and retailer stocking are independent
Alternate hypothesis(H1): Marketing activities and retailer stocking are dependent
2) Null hypothesis(H0): Customers are not satisfied with quality of the products
Alternate hypothesis(H1): Customers are satisfied with quality of the products

POPULATION

1) Here we are considering the retailers of Milma products

2) Here we are considering customers of Milma

SAMPLE SIZE FOR THE STUDY

1) The sample size is 40 to be collected from various retailers.

2) The sample size is 20 to be collected from various customers.