“inbound & outbound logitics”
DESCRIPTION
“INBOUND & OUTBOUND LOGITICS”Sai Aditya foods and retail private limitedVisakhapatnamTRANSCRIPT
A
PROJECT REPORT
ON
“INBOUND & OUTBOUND LOGITICS”
Sai Aditya foods and retail private limited
Visakhapatnam
A Project submitted in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(Batch: 2011-13) - MBA 3rd TRIMESTER
Under the guidance of: Submitted by
Dr. A. Sreeram B. Avinash
Professor, 2225111106
Gitam University, 1st Year MBA,
Hyderabad Business School
Hyderabad Business school
GITAM University
HYDERABAD
Rudraram, Patancheru (M), Medak Dist. - 502 329, A.P. INDIA
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DECLARATION
I hereby declare that this Project Report titled A effective study on Inbound and Outbound
logistics of Fresh Choice in Visakhapatnam submitted by me to the Hyderabad Business
School, GITAM University. Hyderabad is a bonafide work undertaken by me and it is not
submitted to any other University or Institution for the award of any degree diploma /certificate
or published any time before.
Name and Address of the Student Signature of the
Student
Bandaru Avinash
1st Year MBA
2225111106
HYDERABAD BUSINESS SCHOOL
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CERTIFICATION
This is to certify that the Project Report title A effective study on Inbound and Outbound
logistics of Fresh Choice in Visakhapatnam submitted in partial fulfillment for the award
of MBA Programme of Hyderabad Business School, GITAM. University, Hyderabad,
was carried out by Bandaru Avinash under my guidance. This has not been submitted
to any other University or Institution for the award of any degree/diploma/certificate.
Name and address of the Guide Signature of the Guide
Dr. A. Sreeram
Professor,
Hyderabad Business School,
GITAM University,
Rudraram,
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ACKNOWLEDGEMENT:
Any job in this world however trivial or tough cannot be accomplished without the assistance of
others. There is always a sense of gratitude that one likes it express towards the persons who
helped to change an effort in a success, the opportunity to express my gratitude to people who
have helped me to accomplish this task.
I deem it a proud privilege to extend my greatest sense of gratitude to my trainer
MR B. SUDHAKAR RAJU (GENERAL MANAGER FOR RETAIL & MARKETING, SAI
ADITYA FOODS AND RETAIL PRIVATE LIMITED) for the keen interest, inspiring
guidance, continuous encouragement, valuable suggestions and constructive criticism throughout
the pursuance of this report, and also extended my greatest sense of gratitude to MR. A.V.N RAJ
PRODUCTION MANAGER.
I take this opportunity to thank MR. N.ANIL KUMAR (SENIOR EXECUTIVE HR), MR.
V.GUPTA (SENIOR EXECUTIVE MARKETING) for their valuable support in helping me to
gain this opportunity of being associated with an organization of such esteem.
I am thankful to director sir PROF.S.S.PRASADA RAO for granting me the permission to
undertake the study. I also thank Associate DR.S.SUMANBABU for making this internship
happen and also making us and part of SAI ADITYA FOODS AND RETAIL PRIVATE
LIMITED. I would like to convey thanks to my project guide DR.U.DEVIPRASAD,
DR.SREERAM for ready assistance, keen interest and Valuable suggestions. I also thank
PROF.Y.MANOHAR for taking a lecture how to behave in an organization and perform the
internship.
Last but not least it would be unfair if I don’t extend my gratitude to all my faculties, to my
parents and all my friends for their active cooperation which was of great help during the course
of my training project.
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ABSTRACT:
Food industry supply chain and logistics are one of the important fields of modern life. In a
globalized world where parts and pieces are being sourced from different locations to be
summoned into one in the next location, the well thought and implemented supply chain system
is the key for success. Taking above mentioned into account, the supply chain and logistics
system in food industry is even more critical due to the factors as safety, seasonality, and product
life of food.
The research is on the basis of A STUDY ON “INBOUND AND OUTBOUNG LOGISTICS”
AT SAI ADITYA FOODS AND RETAIL PRIVATE LIMITED. The overall aim of the project
is the analytical review of the Logistics system management adopted by Sai Aditya Foods and
Retail private limited. Analysis will be carried out based on several key points helping to
understand the “nature of business”, established infrastructure to be able to respond to the
customer demands, challenges faced and solutions to mitigate those, overall supply chain system
has been built on.
The study was based on the descriptive research design. The sampling design being used here is
stratified random sampling. A survey was done on the Institutional sales (Retailers) like More,
Spencer (Hyper), kashyap, and Vijetha. And National sales like Railways & Shipyard. A
survey was also done on Fresh Choice Line Members with a sample size of 9 out of 11 line
members in Fresh Choice. Thus this report seeks to utilize primary research, through
structured questionnaires and secondary method involves data collection and information
given by the organization. Collected date is represented in bar chats and interpreted.
Suggestion made by the Retailers, and Line Members of Fresh Choice are implemented
whenever they were applicable.
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INDEX
CHAPTER PAGE NO
CHAPTER-1INTRODUCTION TO TOPIC
8
CHAPTER-2INDUSTRY PROFILE
25
CHAPTER-3COMPANY PROFILE
32
CHAPTER-4DATA ANALYSIS & INTERPETATION
43
CHAPTER-5FINDING & SUGGESTION
65
CONCLUSION 67
BIBOLOGRAPHY 68
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CHAPTER-1
INTRODUCTION TO TOPIC
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INTRODUCTION
Logistics is the management of the flow of goods, information and other resources,
including energy and people, between the point of origin and the point of consumption in order
to meet the requirements of consumers. Logistics involves the integration of information,
transportation, inventory, warehousing, material-handling, and packaging, and occasionally
security.
History of Logistics:
Logistics has always been a critical part as one of the 4 P’s in Marketing:
• Product
• Place
• Price
• Promotion
The “Place” component ensures the product is at the right place, at the right time, in the right
quantity and the right quality.
"How the logistics discipline started and where it is headed?”
Military Roots:
Logistics received recognition in military operations during World War II. It gained its
momentum as it contributed to the effective distribution of machinery and supplies to troops. A
service delivery failure here may mean an increase in unnecessary fatalities. Peter Drucker (a
business guru in the 1960’s) identified logistics as a growing concern within business. This
generated more prominence towards the practice of logistics.
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Globalization:
With the advent of globalization, firms began to seek ways of cutting their production costs.
Thus, multi-national corporations re-located their factors of production to low-wage countries to
gain a competitive advantage.
Increasingly, more and more countries are joining the World Trade Organization (WTO) and
opening their country to foreign capital investment (most recently in India and China).
Retail giants like Wal-Mart exploit these new efficiencies and increase their imports from new
emerging economies to reduce product prices in their stores. Thus, the new challenge is how to
manage the product and information flows around the world. The increased pressure on
managing these operations further underscored the importance of logistics as an area for
optimization.
Information Technology:
Another contributor that led to an increased presence for logistics was the explosion in
information technology and use of computers throughout the 1980’s and onwards.
The cost of computing has decreased year after year since then and computing power rose
exponentially. The use of the Internet and increased bandwidth capacity further enhanced and
enabled quick connectivity and collaborative relationships that reduced inventories and created a
Just-In-Time operating opportunity for organizations.
These efficiencies reduced errors, increased fill-rates and cut overall operating costs for
organizations.
Supply Chain Management:
As the above factors fuelled efficiencies, logistics gained more prominence in organizations. A
natural extension was to link the logistical operations from each firm to the entire supply chain.
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The new paradigm became known as the ‘systems approach’ to supply chain management and
introduced the concept of trade-offs. In order to achieve least total supply chain cost, operational
integration of the 5 main areas of logistics must be simultaneously optimized:
• Warehousing
• Transportation
• Inventory
• Order Processing and
• Lot Quantities
Optimizing any one of these areas individually will sub-optimize the system as a whole.
For example, a single warehouse in a network would achieve the lowest warehousing cost. This
would create high transportation costs as suppliers ship over greater distances to ship products
into the warehouse and conversely, outbound to its market distribution area.
The addition of a second warehouse in the network would reduce transportation costs more than
the marginal cost of operating the second warehouse, which would reduce total supply chain
costs.
Future Challenges:
As the business landscape constantly changes with mergers & acquisitions and as
globalization grows, there are corresponding changes in the supply chain that need to be
continuously optimized to ensure least total supply chain costs.
Radio Frequency Identification (RFID) and other technologies will continue to drive down
inventories as better information is made available in a timely manner. Since supply chain
activities cross over all functional areas in an organization (such as Marketing, Finance and
Human Resources), new metrics must be developed to track true supply chain costs and identify
the impact on new costs as corporate strategies change.
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Organizations that measure and benchmark these costs will have a sustainable competitive
advantage going forward.
METHODOLOGY OF THE STUDY
The data used for the study had primary and secondary character to it. The primary data was
collected through questionnaire method. The secondary data were composed through the
reference of books, websites, and interviews with various executives in different organizations of
the sample. The procured data was analyzed by a simple percentage method and the results are
supported with graphs and charts.
SCOPE OF STUDY
LOGISTICS MANAGEMENT
Supply Chain Management encompasses, planning,
design, control and implementation of all business
processes related to procurement, manufacturing,
distribution and sales order fulfillment functions of a
business.
All these activities involve multiple networks of
vendors and service providers which are integrated
and co-coordinated by the Supply chain Experts of
the organization to move raw materials and finished
goods from and to all distant locations across the globe.
‘Logistics’ is the backbone on which Supply Chains are driven. Logistics refers to management
of flow of goods and supplies involving information, data and documentation between two
entities or points. Logistics play important role in post procurement function of delivery of raw
material from the supplier to the point of production and Finished Goods Supply chain
management from the point of dispatch from factory to the point of delivery to the customer.
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Global markets are expanding beyond borders and re-defining the way demand and supplies are
managed. Global companies are driven by markets across continents. In order to keep the cost of
manufacturing down, they are forced to keep looking to set up production centers where cost of
raw materials and labor is cheap, Sourcing of raw materials and vendors to supply the right
quality, quantity and at right price calls for dynamic procurement strategy spanning across
countries.
With the above scenario you find companies procuring materials globally from various vendors
to supply raw materials to their factories situated in different continents. The finished goods out
of these different factory locations then pass through different chains of distribution network
involving warehouses, exports to different countries or local markets, distributors, retailers and
finally to the end customer.
Logistics therefore is an integral component of Supply chain Management.
Origin of Logistics as a recognized discipline is generally attributed to military and defense
organizations. Defense departments make use of detailed and extensive planning to gather
supplies and move men and materials to various locations and bases. The success of any military
exercise depends upon the ability of the establishment to be able to gather information, analyze,
assimilate and take appropriate logistical measures to continuously support their units.
Similarly in any business organization, the successful operations depend upon visibility and
control over the logistics process managed through and with excellent logistics service provider
backbone and network
Finished Goods supply chains are very dynamic and are the backbone of a good sales
organization. A number of departments are responsible to work in coordination and seamlessly
to ensure Finished Goods reach the markets and the customers. Logistics and supply chain
departments have to work in tandem with or aim to be ahead of Marketing and Sales and ensure
that when a product is announced for sale by marketing, the products are made available at all
nook and corner of the city, state and country. A situation where the customer goes to a sales
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counter to place an order and the product is not available cannot and should never happen as a
rule.
PROCUREMENT
It can be defined as the process (completion of a series of activities) of obtaining goods and
services for the firm consistent of user requirements. It links members in the supply chain and
assures the quality of suppliers in that chain. The quality of the materials and services that are
input affects finished product quality and hence customer satisfaction and revenue.
TRAFFIC
The traffic function manages the inbound transportation of materials
RECEIVING
The receiving process involves the actual physical receipt of the purchased material from the
carrier. The receiving clerk, who must ensure that the goods a firm receives were those ordered
and shipped, compares the materials indicated on the buyer’s purchase order and the vendor’s
packing slip with the material the buyer has actually received. If discrepancies exist, the
receiving department notifies the purchasing department, the material’s users, and the accounts
payable department.
Logistics service providers:
Procurement Logistics, Manufacturing Logistics and Finished Goods Logistics functions are
managed by different independent departments in a company. Though the functions of the
departments involve common activities like transportation etc., however the processes and nature
of logistics functions are specific to each function besides the requirements and sensitivities of
delivery times, schedules etc.
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With the emerging trends and availability of third party logistics providers has pushed the
companies to adapt the practice of outsourcing all supply chain components and logistics
functions termed as non-core functions to their part logistics providers.
Inbound logistics:
Inbound side of logistics includes procurement or purchasing and the related materials
management activities. It is important to note that the inbound and outbound logistics systems
share common activities or process, since both involve decisions related to transportation,
warehousing, materials handling, inventory management and control, and packaging, as well as
some other activities.
Logistics Management Function:
Logistics is the process of movement of goods across the supply chain of the company.
This p rocess cons i s t s o f var ious func t ions , which have to be proper ly
managed to br ing effectiveness efficiency in the supply chain of organization. The
major logistical function are-
Warehousing:
Warehousing refers to the storing and assorting products in order to create time utility.
The basic purpose of the warehousing activity is to arrange placement of goods, provide
storage facility to store them, consolidate them with other similar products, divide them
into smaller quantities and build up assortment of products. Generally, larger the number of
warehouses a firm has the lesser would be the time taken in serving customers at different
locations, but greater would be the cost of warehousing. Thus, the firm has to strike a
balance between the cost of warehousing and the level of customer service.
Major decision in warehousing is as follow:
Location of warehousing facility
Number of warehousing
Size of warehouse
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Design of the building
Ownership of the warehouse
Warehouse efficiency factors
Managing Warehouse Operations is akin to playing symphony with people, systems and
processes. As long as these elements are balanced and in harmony the operations go on smoothly
and efficiently.
People
People are very important assets of warehouse operations. Human resources can be the strongest
and the weakest link to warehouse performance.
Even in a highly automated and system controlled design, warehouse operations are heavily
dependent upon people to run and manage operations.
Typically in warehouse operations, besides management structure, the operations resource
categories are MHE Operators, Operations staff who manage shipments, put away, material
picking tasks and other operations including labeling, packing, kitting, inventory counting,
documentation and systems operators. These resources are mainly categorized into team leaders
and operators.
Normally in warehouse operations, the manpower resources structure is employed in a mix of, on
the company role jobs, on contract and temporary or daily wages and outsourced contract labor.
The categorization is based on the nature and skill set requirement of each job coupled with
criticality of the position and the local supply and availability of resources.
Workforce - Quality, Job Structure:
Workforce strength is often an issue which affects the operational efficiency. It has been noticed
several times that few local managements try to cut corners by under staffing at various levels
and extending the working hours or job responsibilities and trying to save costs. There can be
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several instances of shortage of manpower from the strength that has been planned and budgeted
for.
Any warehouse operations needs to have an optimum workforce budgeted based on clear cut
tasks and volumes of transactions. As all operations are time bound activities having inter-related
tasks and dependencies, estimation of work and work division clarity is essential to avoid over
staffing or under staffing. Over staffing can result in slackness in individual performance levels
besides increasing the costs.
Warehouses source temporary labor and resources from local nearby areas to manage this sudden
surge in demands. Any change in internal process or business process or improvement in systems
and processes can lead to redundancies. Many times, they are having to face over staffing
problems and need to look at ways to reduce numbers or re deploy resources into other activities.
Therefore warehouse operations are never in a stable state or status quo for a long time.
Managing people dynamics holds key to managing operations effectively.
Right skill sets
In warehousing operations, process and system compliance demands keen focus and discipline at
all levels. The skill sets and attitude requirements are different for different jobs. The skill set
requirement is more linked to attitude and functional capability of the persons and less dependent
upon knowledge or educational qualification.
Any person who works on Forklift would need to have a good sense of control, direction and
patience. At operating level, people are required to understand what is expected of them, be able
to follow the process and comply with the process and instructions. The operations require
manual dexterity and ability to be on feet for long durations besides being able to bend down and
reach up constantly to pick up items. Ability to lift small weights and walking distances in the
warehouse is Must Have strengths. These practical points have to be kept in mind and evaluated
while hiring people.
Attitude and Outlook
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It has been seen in warehouse operations that the workforce attitude towards the company, job
and customer plays an important role in the operations. Studies done in various cases have shown
a direct link between people’s attitude and commitment to day to day operations. Wrong
shipments, short shipments and defective deliveries coupled with warehouse equipment damage,
misuse and accidents are few of the results of the problems that show up and need correction of
attitudes at individual levels. Inventory management functions are highly vulnerable to
individual performance and attention to detail.
A good warehousing operations management team who is sensitive to the above factors and is
equipped to manage a team and the dynamics would be successful in ensuring efficient
operations.
MATERIALS MANAGEMENT:
Effective supply chain management requires careful coordination of the inbound system of
Logistics, which is frequently referred to as materials management, and the outbound system,
which is usually called physical distribution. The integration of the inbound and outbound
system is extremely important to the efficient and effective management of the logistics supply
chain. Information flow is often the key ingredient to the coordination of inbound and outbound.
Since the information regarding product demand flows down the supply chain, the possibility
exists that decisions related to the flow of materials will not be coordinated with the customer,
especially with respect to inventory accumulation and/or lack of appropriate flow quickly in both
directions for effective coordination.
Materials management can be described as the planning and control of the flow of materials that
are a part of the inbound logistics system. Materials management usually includes the following
Activities: procurement, warehousing, production planning, inbound transportation, receiving,
materials quality control, inventory management and control.
Manufacturing:
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Manufacturing of consumer products has evolved with changes in technology. The focus has
been to increase through put rate, quality and flexibility of production. With advances in
automation and lean manufacturing techniques production of consumer goods has undergone a
sea transformation from being batch processes to continuous processes; it has become less labour
intensive and more flexible to changing product mix. Fresh Choice has been adopted an
advanced technology in Manufacturing a products with good workforce and keeping quality as
major aspect and producing a product to the market.
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Manufacturing planning of products in Fresh Choice
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Raw Materials
Mixing
Volumetric Divider
Demoulding
Bread Moulder Proofing chamber Oven Baking
Cooling the Trays for 3-4 hrs
Slicing
Interprover
Packing
Dispatch
OUTBOUND LOGISTICS:
Although companies cannot afford to neglect their inbound logistics systems, many companies
focus more upon outbound systems because of the costs involved and because managing the
outbound system well make it easier to achieve and sustain market share.
The current emphasis upon reducing cycle times and developing pull inventory systems and
flexible manufacturing makes it even more critical that the inbound and outbound systems be
coordinated. It is almost impossible in today’s environment to manage inbound and outbound
systems in the same company as separate processes.
Inbound and outbound systems share some common activities, such as transportation, inventory,
warehousing, and materials handling. However, like inbound systems, outbound systems have
some activities that are unique or deserve special emphasis, such as customer service and
channels of distribution.
Reverse logistics and SCM:
Supply Chain Management is concerned not only with the flow of raw materials and finished
goods, but scope extends beyond this to include reverse flow of unsold finished goods, parts and
packaging materials from the point of consumption at customer’s end back to the organization or
to rework / refurbishing vendors.
In Fresh Choice concept of reverse logistics is applicable to Institutional sales like More,
Kashyap, Spencer’s, Vijetha, were the damaged products are been taken back to production unit.
Transportation:
Transportation seeks to move goods from points of production and sale to points of consumption
in the quantities required at times needed and at a reasonable cost. The transportation system
adds time and place utilities to the goods handled and thus, increase their economic value. To
achieve these goals, transportation facilities must be adequate, regular, dependable and equitable
in terms of costs and benefits of the facilities and service provided.
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The Production, Logistics and Marketing functions:
SAMPLING TECHNIQUE
Sampling is the selection of some part of an aggregate or totality on the basis of which a
judgment about the aggregate or totality is made. Area sampling method was used in this project.
Under this sampling method, we first divide the total area into a number of smaller non-
overlapping areas. Then all units in these small areas are included in the sample. This sampling is
especially helpful where we don’t have the list of the population concerned. It also makes field
interviewing more efficient since interviewer can do many interviews at each location.
SIZE OF THE SAMPLE
For a research study to be perfect the sample size selected should be optimal i.e. it should
neither be excessively large nor too small. Here the sample size was 10 in line members survey,
and 4 in Institutional sales like More, Spencer’s, Vijetha, Kashyap.
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DATA COLLECTION METHOD:
In the project, data was collected in two ways by using primary and secondary methods.
The primary data was collected through questionnaire method. The secondary data were
composed through the reference of books, websites, and interviews with various executives in
different organizations of the sample. The procured data was analyzed by a simple percentage
method and the results are supported with graphs and charts.
TOOL USED FOR ANALYSIS
Percentage analysis
PERCENTAGE ANALYSIS:
One of the simplest methods of analysis is the percentage method. It is one of the
traditional statistical tools. Through the use of percentage, the data are reduced in the standard
form with the base equal to 100, which facilitates comparison
The formula used to compute Percentage analysis is,
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Logistics of Fresh choice
Logistics planning for Fresh Choice is very much similar to Dairy products logistics
process.
Fresh Choice takes special care in delivering the goods which have low-shelf life to end
point (consumer or Dealer) and ensure that timely delay in delivering is avoided.
“An early bird catches the worm” with this great philosophy Fresh Choice is trying to
capture the market.
“Earliest is the best” Timing is the major aspect in the Fresh Choice logistics.
Fresh Choice has implemented a new Production Plan recently so that the product
reaches the market earlier and attract the consumer, with this plan entire logistics process
of fresh choice is well organized and showing a good result.
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Special order delivery
Warehouse
Rural marketing
Line Distributors
Institutional sales
Own Outlets
Production unit-1
Limitations of Study:
A few organizations did not publish the exact values for each question especially in sales
turnover and other similar figures.
Certain monetary values were not being filled by organizations.
Due to organizations security reasons documents like Bills, Warehouse Bills, etc.
couldn’t be gained.
Most the questionnaire answers were filled over internet email facility therefore contact
was through phone and emails.
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CHAPTER-2
INDUSTRY PROFILE
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BAKERY INDUSTRY:
Bakery industry in India is the largest of the food industries with an annual turnover of about Rs.
3000 crores. India is the second largest producer of biscuits after USA. The biscuit industry in
India comprises of organized and unorganized sectors. Bread and Biscuits form the major baked
foods accounting for over 80% of total bakery products produced in the country. The quantities
of bread and biscuits produced are more or less the same. However, value of biscuits is more
than bread. The industry has traditionally been and largely continues to be in the unorganized
sector contributing over 70% of the total production. Bakery products once considered as sick
man’s diet have now become essential food items of the vast majority of population. Though
bakery industry in India has been in existence since long, real fillip came only in the later part of
20th century. The contributing factors were urbanization, resulting in increased demand for ready
to eat products at reasonable costs etc.
The sector which is difficult to define has indicated promising growth prospects and has been
making rapid progress. The bakery industry has achieved third position in generating revenue
among the processed food sector. The first and second segments are the wheat flour processing
and fruits and vegetables processing, stated experts from the food industry.
The sector which is riding a positive growth journey is known to generate over 50 per cent
profits on certain products and net profits to the tune of 30-50 per cent annually, informed
experts who have been closely following the industry but did not wish to be identified.
According to the University of Agricultural Sciences (UAS), Bangalore, bakery is a promising
sector for growth going by the interest evinced for products like cakes, biscuits, buns, rusks
among others for all age-groups.
UAS estimates that the bakery industry in India generates Rs 10,000 crore and has a significant
presence of small unorganized players in the business.
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MARKET POTENTIAL
The bakery units are unevenly spread among States. These are mainly concentrated in
the States of Maharashtra, West Bengal, Andhra Pradesh, Karnataka and Uttar Pradesh.
Industrially advanced States like Maharashtra and West Bengal have very large number of
bakery units. The per capita consumption is very high in industrialized States like Maharashtra
and West Bengal. The Biscuits are becoming quite popular in rural areas as well. Nearly 55% of
the biscuits are consumed by rural sector. The higher consumption of biscuits in rural area could
be attributed to its position as a snack, longer shelf life and better taste which is liked by different
cross sections of population. There is no marketing problem as every shop is a market for wafer
biscuits.
Bakery products still remain the cheapest of the processed ready to eat products in the
country. The production of Bakery products has increased from 5.19 lakh tones in 1975 to 18.95
lakh tones in 1990 recording four-fold increase in 15 years. Among the bakery products, biscuits
occupy an important place as they contribute over 33% of total products processed. Over 79% of
the biscuits are produced by small scale sector consisting of both factory and non-factory units.
The growth rate for bakery products is estimated at an average of 9.8% per annum. The demand
for bakery products will continue to increase in future. The estimated growth rate of 9.8% is on
the lower side considering the present potentiality of bakery products, particularly in rural areas,
where about 70% of the population lives. Encouraging trends in consumption of bakery products
by population of lower and middle income groups indicate vast scope for consideration of
nutritional enrichment of bakery products.
Bakery industry in India is on a growth curve. The sector which is difficult to define has
indicated promising growth prospects and has been making rapid progress. The bakery
industry has achieved third position in generating revenue among the processed food sector. The
first and second segments are the wheat flour processing and fruits and vegetables processing,
stated experts from the food industry.
The sector which is riding a positive growth journey is known to generate over 50 per cent
profits on certain products and net profits to the tune of 30-50 per cent annually, informed
experts who have been closely following the industry but did not wish to be
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identified. According to the University of Agricultural Sciences (UAS), Bangalore, bakery is a
promising sector for growth going by the interest evinced for products like cakes, biscuits, buns,
rusks among others for all age-groups.
UAS estimates that the bakery industry in India generates Rs 10,000 crore and has a significant
presence of small unorganized players in the business.
Lucrativ sector:
The bakery industry also is a lucrative sector for entrepreneurship in the food industry. This calls
for honing skills in baking science and technology, stated Chetan L Hanchate, food consultant,
Centre for Processed Foods.
The Central Food Technological Research Institute (CFTRI), Mysore, sees potential in this
growing segment. From small bakeries to airlines and railways, the demand for bakery units and
products is growing.
With globalization and India being viewed as a potential growth market, there has been
a profusion of bakery chains springing up across the country. These include Au Bon Pain, the
US-based bakery café chain, Monogynies, Donut Baker, Cookie Man, Croissant, Café Coffee
Day, Oven pick, Bread Talk, SAJ Industries’ Bisk Farm, Hot Bread, Birdy’s, Donut Master and
Cookie Jar.
The concept of bakery retail chains is a fad. Aping the Western markets, India too has taken
a strategic leap in the modern bakery space. The key growth driver of such retail bakery chains is
the propensity to spend, young population willing to experiment on new products, overall change
in consumption patterns, preferred locations for hangouts for all age groups, according to sources
from the Indian Institute of Management (IIM), Bangalore.
Sabina Kannur, business head, Au Bon Pain, India, said that the fast-casual bakery and café
chain was a need for experimentation by consumers. “This is because the food habits have
witnessed a huge change in recent times. There is a constant interest to opt for e ‘couscous salad’
which is Mediterranean, besides orders for croissants and muesli for breakfast. At office
locations, Au Bon Pain harvest of rice bowl is immensely popular. Urban India is inquisitive,
experimental and is willing to try new things,” he said.
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“For a bakery and café chains there are several challenges to meet when it comes to growth of
the business and generating revenue. Some of the issues are procuring highest quality of
ingredients, maintaining consistency in standards of food and managing efficient service in terms
of hospitality,” pointed out Kannur.
KEYDRIVERS:
The main factors driving bakery industry are diverse. This is because the structure of the bakery
industry comprises three segments namely need-based, basic hotel requirements and connoisseur
requisites. The need-based category caters to products like bread and biscuits. Under hotels, it
varies from breads to pastries, cakes, pizza and puffs. The connoisseur category focuses on
international standard and will cover products like specialized pastries and cakes, including
“pannanie tartsto” in addition to a number of fascinating breads with garlic content among others
available in hard and soft textures, according to Sanjay Mehra, Director, Paramount Impex, a
manufacturer of bakery equipment.
Changes in lifestyles and rising travel opportunities are now forcing coffee bars to add on bakery
products like cakes, sandwiches, pastries, puffs, pizzas, and croissants. “Indian consumer is
extremely experimental in attitude and therefore there is ample scope for Café Coffee Day to
innovate in its offering in food,” stated Venu Madhav, chief operating officer, Café Coffee Day.
In order to have an edge in the market, home delivery and take-away packs are allowing
customers the option of just order and carry, stated an official from Marry Brown, an initiative of
the MG Muthu Group (MGM), Chennai.
Dr S V Suresh, coordinator, Bakery Training Unit, Directorate of Extension, University of
Agricultural Sciences, Hebbel, Bangalore, said there was major inclination for healthy bakery
products like iron-, protein- and fiber-rich breads, and rusks others.
“We have already commenced research on these fronts and developed 100 per cent ragi cakes,
with no Maida. Efforts are also on to use millet powder in many of the bakery products. The
biscuits made of maize flour are a big hit at our bakery counter for the public,” Dr
Suresha added.
29 | P a g e
Biscuit industry
With biscuit consumption becoming an anytime and anywhere convenient option, the presence
of branded biscuits is a common sight on the bakery shelves. From Britannia, Parle to ITC and
Priya Gold all vie for a share of the consumer basket along with the traditional bakery biscuit
varieties.
The biscuits industry is estimated at around Rs 10,000 crore and is growing in double digits. At
the same time, the rate of growth of the industry is also a function of what extent of the equally
large unorganized sector is graduating towards quality and recognized offers. This means that
there is space for everyone to grow and that the industry does not mandate each player to have a
mutually exclusive set of products. However, Sunfeast entered the market with several
innovative products; take for instance, Orange Marie, differentiated creams such as butterscotch,
flavor inclusions within biscuits and flaxseed biscuits, according to an ITC spokesperson.
“Sunfeast’s market share is a third of what Britannia and Parle Products have. (Industry
estimates peg Sunfeast's market share at 11%). They are looking at profitable growth by
following a higher margin, value-added strategy. We have been focusing on the mid-market and
premium segment and less on glucose biscuits. We launched Marie Oats, Special Cookies,
Premium Creams, Choco Fills and relaunched Marie and Dark Fantasy,” added the ITC source.
According to ITC, the Bingo! Range of potato chips is also a part of the bakery offering and the
product saw sales growing by 48 per cent during the December 2010 quarter. In the biscuits
category, sales of Sunfeast grew by 28 per cent during the quarter driven by product mix
improvement led by significant growth in the sales of value-added variants of cookies and
creams. “Snacks and biscuits are major driver of the foods business growth,” pointed out the
company.
Experts from UAS, who are tracking the bakery industry closely, stated that estimating the
market size of the sector is difficult primarily because it is largely unorganized and highly
fragmented with a handful of branded bakeries in the country. In Bangalore city alone there are
over 10,000 bakeries.
30 | P a g e
Growth factors
The major factors for growth of bakery segment, according to Dr Suresha, are brand loyalty,
volumes and strong distribution networks.
According to estimates sourced from the Internet, “The bakery industry in India is valued at Rs
69 billion. Out of this bread and biscuits hold about 82% of the share. Bread, biscuits, pastries,
cakes, buns and rusk are some of the bakery products fast catching up with the popularity trend
in India. The bread market has a business volume of 1.5 million tones’. The bread industry has a
production of approximately 27 lakh tones’.
But with growing food inflation, prices of raw materials like sugar, vegetable oil, milk, and
wheat flour are spiraling. Hence, efforts are on to substitute fats with peanut butter. The UAS
product development research Centre is now using 50 per cent peanut butter and remaining fat
for many products.
“In the wake of the presence of modern global bakeries, the local outlets are facing a challenge
of presentation of the products. There is need for better packaging and presentation for the
products without ignoring quality of the contents and baking processes,” concluded Dr Suresha.
GLOBAL PLAYERS:
Yamazaki baking – Japan
Mexico’s group bimbo – Latin America
Kraft foods – belongs to Nabisco biscuit
INDIAN PLAYERS:
Britannia
Parle
Modern
31 | P a g e
Chapter-3
COMPANY PROFILE
32 | P a g e
FRESH CHOICE:
M/s. SAI ADITYA HOTELS AND SUPERMARKETS PVT LTD. was formed with the
objective of establishing Supermarkets, Cake shops and Hotels throughout the state of Andhra
Pradesh. Mr. K.V.Vishnu Raju the Chief Promoter and Director of this company is a young,
energetic and dynamic Engineering Graduate hailing from the state of A.P. He had worked for
short period is U.S.A. in a multinational company. During his stay in U.S.A. and during his tour
of other developed countries, he was very much attracted by the supermarkets, cake shops, and
hotels existing in those countries. He observed them with keen interest and decided to start
similar ones in Andhra Pradesh. He possesses 15 years of business and management experience.
The idea to start a new format of bakery retail and introduce customers to a quality range of
products was born in 1992. Vishnu Raju, the founder of this institution, is a passionate foodie.
Educated in the US and well-traveled across the globe Raju was always fond of creating a
manufacturing base for retail products. Opportunity was realized when he met with Nilgiris
founder Muthusamy Mudaliar's son, Chenniappan at Coimbatore. At that time Nilgiris was
rapidly expanding its Super market chain in Tamilnadu. Chenniappan saw the passion for
business in Vishnu Raju and immediately encouraged him to take charge of opening
Supermarket formats for entire Andhra Pradesh region under the franchisee model. This was a
great opportunity for Raju to invest into as he was already the Managing Director of Raasi
Cements, and was keen on diversifying into retail. Raju spotted the 'City of Destiny' as an ideal
place to launch the Super market format, as it was the most cosmopolitan town in AP and
together with the Port, Steel plant and Naval base offered a perfect city for middle class working
population to settle down and build a lifestyle.
Nilgiris set foot in the state of Andhra Pradesh through Sai Aditya Foods and Retail Pvt Limited.
The Supermarket franchise was opened in October 1994. Nilgiris had a small bakery attached to
their retail stores, and the genesis for "Fresh Choice" was thus born. In March 23rd 2005 Sai
Aditya Foods and Retail P Limited, launched a new retail format under the brand name of Fresh
Choice, and a range of bakery products like Puffs and Rolls, Breads and Buns, Cakes and
Pastries, and Cookies and Biscuits came into reality. The retail formats had sit in dining and take
away outlets. The first 3 outlets were inaugurated across the popular residential areas in Vizag.
33 | P a g e
Fresh Choice blossomed into a chain of many outlets across the city residential areas and also
built a large distribution network to cover the outskirts of the city. ""
PROMOTERS:
Sri. K.V.Vishnu Raju, Managing Director of the company, is an Engineering
graduate. He worked in U.S.A. for a short period. He hails from the family of Sri B.V.Raju garu
who is the pioneer in Cement Industry in Andhra Pradesh and founder of Raasi Cements. Sri
K.V.Vishnu Raju is the Chairman and Managing Director of Anjani Cements and Chairman of
Sri Vishnu Educational Society, Bhimavaram, He got rich business experience and exposure.
CONSTITUTION:
It is an existing private limited company closely held by the family of Sri K.V.Vishnu
Raju.
LOCATION:
The existing supermarket-cum-cake shop is located at Siripuram opposite Waltair Club.
The bakery’s manufacturing unit is located at Vijayanagaram(Modavalasa).
The company has a chain of Bakery retail stores across Visakhapatnam and is on its way to
expanding its presence in all the major towns of Andhra Pradesh.
The Fresh Choice brand is well known and most sort after for its bakery product range which
includes breads, puffs, pastries etc.
The company has state of the art production facilities at Visakhapatnam and Kakinada through
which the entire product range is sold at company owned stores and distributed through retailers
and institutions.
Fresh Choice products are also available at major retailers like Reliance Fresh, More, Spencer’s,
and PSU Companies, Corporative stores of VSP at Visakhapatnam. The company also supplies
to institutions like HSBC, Airtel, Idea, Indian Railways, Shipping and Star hotels etc. Fresh
Choice offers an excellent product range focusing on quality, hygiene and appealing to
customers of all age groups.
34 | P a g e
VISION:
To be the largest and finest retailer of baked and processed foods in Andhra Pradesh.
Their long term goal is to open retail shops to the general public with a view to
expanding their product, employment development across the east coast of AP. In the
short term they planned to expand the consumer base all over Andhra Pradesh and to
be the largest and finest retailer of baked and processed foods in Andhra Pradesh.
Ultimate in keeping the choice fresh.
Management :
This venture is the brainchild of Mr. K.V. Vishnu Raju.
He spearheaded activities of other group companies as its Chairman and as Director of several
other companies.
Anjani Portland Cement Limited
Vennar Ceramics Limited
Hitech Print Systems Limited
Sai Aditya Foods & Retailing
Dr B.V.Raju Foundation
Sri Vishnu Educational Society
His vision of retail sector for rapid growth and development started in Oct 1994 with the opening
of a Supermarket & Cake Shop with 30 employees at Visakhapatnam.
Under the leadership of Mr. K.Narasimha Raju and his ability to pass down acquired
competencies to succeeding cohorts by training Bakers/ Cake decorators along with Internal
team managers and other bakery & supermarket staff enabled strong business outgrowth with the
view of opening bakery shops throughout Visakhapatnam. Combining the high demand for
quality Breads, cakes and pastries.
Sophisticated methods of Bread and pastry making in traditional method made Fresh Choice to
grown from a single outlet into Bakery retail chain with 300 plus employees.
35 | P a g e
MISSION:
To produce and retail large volumes of quality and fresh baked and processed
foods, with a strong backup of state of the art production facilities. A highly
motivated and committed workforce catering to urban, semi urban and rural
markets and upholding the interests of all the stakeholders involved.
The commitment to excel in the craft and artistry of baking enabled to deliver
high quality products that look appealing outlook and delicious for the customers,
delight the customer and make celebrations a moment to cherish. They also have
committed themselves to tantalized the pallet of bakery connoisseurs. Their
products exceed local stores and franchise competitors. Their products possess
more variants than the competitors. They create the elegance in traditional method
of bread making, making and cake decorating with culinary techniques to achieve
the height of quality and excellence in the cake and pastry sector. Their products
range from high end artistry to modern and local customs.
The slogan they adopt is
If you dare to dream we will create it.
The choice that keeps your option fresh.
COPORATE SOCIAL REPOSIBLITY ACTIVITIES:
Conducted blood camp programmes.
Conducted swine flu programmes.
Conducted events like TAARE ZAMEEN PAR on global warming for children.
Brief profile:
Fresh Choice is a Super Market and Bakery chain in Visakhapatnam which owns one
supermarket and 16 Bakery outlets. It also supplies Bread and other Bakery products to over 350
outlets in and around Vizag through its own distribution network.
36 | P a g e
The Bakery business had a very humble beginning 12 years ago with only a small production
facility. For catering to the needs of the supermarket and the In-house cake shop. With the
growing potential and customer demand the Bakery was shifted out of the supermarket and the
capacity increased. Bread and other products started being distributed in the local market.
The positive outcome of the bakery operations, the foreseeable potential in the Bakery retail
format, the opportunity for growth and the experience gained over the last 12 years of operations
have prompted the expansion of the Bakery business. In 2004 an exclusive cake shop was started
near the production facility. Subsequently two more cake shops were also started in the city.
With this experience, favorable market conditions and the opportunity for growth, it was decided
to expand the model to cover the entire city. It was decided to target the more affluent costal
districts (Visakhapatnam, East and West Godavari, Krishna) of Andhra Pradesh in the first
phase. The Second Phase would cover the corridor between Vijayawada and Hyderabad.
With own Production, Sales and Logistics they have complete control over their products right
from production to sale. This will enable them to provide customers with the best products in the
best possible environment ensuring complete customer satisfaction.
In order to increase the production new facilities located at modavalasa (vijayanagaram
district) and Kakinada came into production to meet the market demand yet to spread the product
to other districts as well.
The present turnover is about 14 crores they target for this financial year is about 20 crores .
Management Strategies:
To Maintain a focus on Quality product with bottom-line growth through optimal
performance. They also focus on technology and innovation to make sure employees have
extensive training to perform proper technique and equipment operations.
Meeting Customer Needs:
Fresh choice ensures that staff and quality preparation, food service, storage and holding
equipment with a view of producing a quality products for the customers liking in terms of taste,
freshness and hygienity. Consumers will come back for time and again.
37 | P a g e
Market Share Distribution:
Word of mouth advertising via quality output has proved their strongest selling point,
Occasional social events Like Awareness Programs, Sports, School Competitions, donations and
product gifts to active community figures. They take the product to the consumers and let them
sample the product to help create brand awareness.
Their 15 years’ experience and Ability to Penetrate Market in baked goods preparation and quick
delivery along with a fine reputation for high quality products will answer the demand for a fast,
fresh, tasty menu of quality bread, cakes and pastry products. Their ability to deliver quality &
quantity to meet special and unique requests enable them to penetrate new market segments
while holding niche positions. Within a short time they have gained from a small 10% market
share to 70%.
Products and Services:
Showcase of elegantly decorated special occasion cakes are priced for all segments of customers,
The products also range in variants and are rightly priced for all segments of people. Affordable
pricing is ensured to cater these products to the middle income group people. Customers service
like door delivery, make to order and feedback are given top priority at fresh choice.
Breads: The choice of bread includes Sandwich, Milk, Wheat, Masala, French…..etc., and
wide variety of buns, cream bun being the most popular.
Puffs: Fresh Choice is synonymous for its spread of puffs with delicious fillings of both veg
and non-veg variants.
Pastries and Cakes: Their Fresh Cream pastries and Butter Cream cakes are a special
attraction for all occasions.
Cookies and Biscuits: Almond cookies are an In-house specialty; other choices include
Butter, Cashew, Honey nuts, Chocolate… etc. Cakes Pizzas and Sandwiches are also included.
Outlets:
38 | P a g e
The sale of products will be through the company’s own outlets and also through institutional
sales. All outlets will have a standard design and look. The outlets will be divided into 3 formats
namely L1, L2 and L3.
L1 are outlets typically situated in high traffic areas and with an area of 150-300 sq ft. They will
have no seating arrangements and will be take away counters. They are branded as Fresh Choice
Express.
L2 is outlets with an area of 300 -500 sq. ft. These are also air-conditioned and will have 2-3
tables with seating or a couple of High tables. They are branded as Fresh Choice Regular.
L3 are the flagship stores. They are largest of the three formats and will occupy anything
between 750-1500 sq. ft. They are well decorated, air conditioned and have a seating capacity of
more than 35. They are branded as Fresh Choice Super.
39 | P a g e
DIRECTORIAL BOARD:
Chairman and Managing Director - Mr. K.V.Vishnu Raju
Vice Chaiman - Mr.R. Ravichandran
Business Director - Mr.K. Narasimha Raju
MANAGERIAL BOARD:
General Manager (Retail and Marketing) - Mr.B.Sudhakar Raju
Deputy General Manager (production) - Mr.B.B.V Krishnan Raju
Production manager - Mr.A.V.N RAJ
Brand Manager - Mr.Varun
Financial manager - Mr.Dhanraj
Senior executive H.R - Mr. N.Anil Kumar
Senior executive marketing - Mr.V.Gupta
Manager IT - Srikanth
40 | P a g e
Organization Structure
41 | P a g e
Director
D.G.M Production
Incharge
Cashier
Helper
Supervisor outlet
AdministrationManager
Production
Assistant Marketing Manager
Line Distribution
Distribution
Market Executive
Institutional Sales
Kitchen supervisor
Banking supervisor
Dispatching
Supervisor
Stores supervisor
Supervisor
IT ManagerFinance Manager
Super market supervisor
Sr.EXE HR
Cashier Accountant
Assistant
Stores Supervisor
Purchasing Supervisor
Floor supervisor
GM (Retail & MRKT)
Packing
SWOT analysis of fresh choice:
Strengths
Fresh choice is one of the trusted brands in Visakhapatnam
Provides good quality of bakery products.
Excellent supply of products whenever required
Widely accepted by all generations.
Weakness
Quantity of biscuits is less compare to its competitors, as they concentrate more on
Quality.
Duplication of fresh choice products available in the market made by local
manufacturers.
Opportunity
With the opening of new outlets in different areas the sale of products will increase.
Generates employment opportunity.
Threat
Bakeries like Food Ex, Aashray, Bakers zone entering into this segment of market.
Offering heavy discounting in the market by Competitors products.
42 | P a g e
CHAPTER-4
DATA ANALYSIS & INTERPRETATION
43 | P a g e
OUTBOUND LOGISTICS OF FRESH CHOICE
This survey is under on Line Members and Institutions sales (retailers)
The Fresh Choice has 11 line members, >5 institutions sales (retailers) like More, Spencer’s (Hyper), kashyap, Vijatha, and National sales like Railways and Shipyard and also Fresh Choice own outlets, Fresh Choice also has own outlets. With these factors, sales of the Fresh Choice are being promoted in and around Visakhapatnam dist.
The collect data is interpreted and presented in bar chat diagram.
Line member’s names
1. Lathiff
2. Kishore
3. S.Srinivas rao
4. Bhaskar Panda
5. Venkataswarao
6. Raju
7. Anand
8. Appa rao
9. Radha Krishna
10. Venkatesh
44 | P a g e
DATA ANALYSIS ON LINE MEMBERS
1. Line member’s relation with Fresh Choice
SI. No Response No. of Respondents
Percentage
1 1-6 Months 0 0
2 6 Months 2 20
3 1-2 Years 3 30
4 > 2 Years 5 50
Total 10 100
1-6 Months 6 Months- 1year 1-2 years >2 years0
1
2
3
4
5
6
0
2
3
5
Line member’s relation with Fresh Choice
INFERENCES
Out of 10 line members, 2 member has 6months to 1year relation, and 3 members has 1-2 years
relation, and remaining 5 members have >2years of relation with Fresh Choice.
45 | P a g e
2. What influence you to buy Fresh Choice Products
SI. No Response No. of Respondents
percentage
1 Quality 5 50
2 Price 4 40
3 Brand Image & Value 1 10
Total 10 100
Quality Price Brand Image & value0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5
4
1
What influence you to buy Fresh Choice Products
INFERENCES
Out of 10 line members, 5 members are interested to buy Fresh Choice because of Quality and 4 members are interested to buy Fresh Choice because of Price and 1 member are interested to buy Fresh Choice because of Brand image & values.
46 | P a g e
3. Regular supply of Fresh Choice products
SI. No Response No. of Respondents
Percentage
1 Daily 9 90
2 Weekly 1 10
3 15 Days 0
4 Monthly 0
Total 10 100
Daily Weekly 15 Days Monthly0
1
2
3
4
5
6
7
8
9
9
1
0 0
Regular supply of Fresh Choice products
INFERENCES
Out of 10 line members, 9 members get Fresh Choice products daily and 1 member get Fresh Choice products weekly sometimes.
4. Profit derived from Fresh Choice products to dealers
47 | P a g e
SI. No Response No. of Respondents
percentage
1 20% or Less 6 60
2 21%-49% 4 40
3 50%-74% 0 0
4 75% or more 0 0
Total 10 100
20% or less 21% -49% 50% -74% 75% or more0
1
2
3
4
5
6
6
4
0 0
Profit derived from Fresh Choice products to dealers
INFERENCES
Out of 10 line members, 6 members are getting profit by selling Fresh Choice is less than or equal to 20% and 4 members are getting profit by selling Fresh Choice products is 21% - 49%.
5. Payment mode
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SI. No Response No. of Respondents
Percentage
1 CASH 9 90
2 CREDIT 1 10
Total 10 100
Cash Credit0
1
2
3
4
5
6
7
8
9
109
1
Payment mode
INFERENCES
Out of 10 line members, 9 line members pay cash to Fresh Choice and take product.1 line member take products on credit.
6. Receiving company’s Incentive schemes
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SI. No Response No. of Respondents
percentage
1 YES 5 50
2 NO 5 50
Total 10 100
Yes No0
0.51
1.52
2.53
3.54
4.55
5 5
Receiving company’s Incentive schemes
INFERENCES
Out of 10 line members, only 5 members are receiving incentive schemes from Fresh Choice and 5 members are not receiving any incentive schemes from the Fresh Choice.
7. Opinion on schemes
50 | P a g e
SI. No Response No. of Respondents
percentage
1 Good 2 20
2 Satisfied 5 50
3 Poor 3 30
Total 10 100
Good Satisfied Poor0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2
5
3
Opinion on schemes
INFERENCES
Out of 10 line members, only 2members are saying good, and 5 are satisfactory with the incentive schemes provided by Fresh Choice, and 3 are feeling poor with the schemes provided by the Fresh Choice.
8. Price comparison between Fresh Choice & other brands
SI. No Response No. of Respondents
percentage
1 High 3 30
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2 Normal 6 60
3 Low 1 10
Total 10 100
High Normal Low0
1
2
3
4
5
6
7
3
6
1
Price comparison between Fresh Choice & other brands
INFERENCES
Out of 10 line members, 3 members are feeling that price of Fresh Choice is high, and 6
members are feeling that price of Fresh Choice is normal when compared to other brands, and 1
member is feeling that price of the Fresh Choice is low.
9. Accuracy in charging freight and extra service bills
SI. No Response No. of Respondents
percentage
1 Satisfied 0 0
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2 Dissatisfied 0 0
3 Own Transport 10 100
Total 10 100
Satisfied Dissatisfied Own Transport0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 0
10
Accuracy in charging freight and extra service bills
INFERENCES
Out of 10 line members, all the 10 line members are having their own transportation.
10. Periodic information about Fresh Choice to dealers
SI. No Response No. of Respondents
percentage
1 YES 5 50
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2 Phone 4 -
3 NO 5 50
Total 10 100
Yes Phone No0
1
2
3
4
5
6
5
4
5
Periodic information about Fresh Choice to dealers
INFERENCES
Out of 10 line members, 5 members are receiving periodically information about Fresh Choice and 5 members are not receiving periodically information about Fresh Choice. Members receive periodic information about Fresh Choice is through phone.
11. Fresh Choice conducts dealers meeting
SI. No Response No. of Respondents
percentage
1 YES 4 40
2 NO 6 60
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Total 10 100
Yes No0
1
2
3
4
5
6
7
4
6
Fresh Choice conducts dealers meeting
INFERENCES
Out of 10 line members, only 4 members say yes that Fresh Choice conduct meeting regularly and 6 members say no that Fresh Choice doesn’t conduct meeting regularly.
12. Opinion on timely distribution system of Fresh Choice
SI. No Response No. of Respondents
percentage
1 On Time 5 50
2 Not on Time 1 10
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3 Mixed 4 40
Total 10 100
On Time Not on Time Mixed0
0.51
1.52
2.53
3.54
4.55
5
1
4
Opinion on timely distribution system of Fresh Choice
INFERENCES
Out of 10 line members, 5 members say that Fresh Choice delivers them on time and 1 member
say that Fresh Choice delivers them not on time and 4 members says that fresh choice delivers
mixed.
13. Are there any damages on Fresh Choice products through Logistics?
SI. No Response No. of Respondents
percentage
1 No Damages 7 70
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2 Regular Damages 3 30
Total 10 100
No Damages Regular Damages0
1
2
3
4
5
6
7
87
3
Are there any damages on Fresh Choice products through Logistics?
INFERENCES
Out of 10 line members, 7 members say there are no damages, and 3 of them say there are damages regularly.
14. Areas that give opportunity for Fresh choice improvement
SI. No Response No. of Respondents
percentage
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1 Order Process 1 10
2 Delivery 3 30
3 Inventory 2 20
4 Marketing 4 40
Total 10 100
Order ProcessDelivery
InventoryMarketing
0
0.5
1
1.5
2
2.5
3
3.5
4
1
3
2
4
Areas that give opportunity for Fresh choice improvement
INFERENCES
Out of 10 line members, 1 member say there is an opportunity to improvement in order process, and 3 members say there is an opportunity to improvement in delivery, and 2 members say there is an improvement in inventory, and 4 members say there is an improvement in marketing
15. Overall dealers experience with Fresh Choice
SI. No Response No. of Respondents
percentage
1 Satisfied 5 50
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2 Neutral 4 40
3 Dissatisfied 1 10
Total 10 100
Satisfied Neutral Dissatified0
1
2
3
4
5
6
5
4
1
Overall dealers experience with Fresh Choice
INFERENCES
Out of 10 line members, 5 members are satisfied with overall experience with Fresh Choice and
4 members are neutral, 1 member is dissatisfied.
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DATA ANALYSIS ON INSTUTIONAL SALES
1. How long have you been using the Fresh choice products
1-6 months 6 months to 1year 1-2 years >2 years0
0.5
1
1.5
2
2.5
3
3.5
1
3
How long have you been using the Fresh choice products?
INFERENCES:
Out of 4 retailers, Vijetha having relationship from past 6months to 1 year, remaining 3
retailers (More, Spencer’s, kashyap) has good relationship from >2 years
2. From where do you get Fresh Choice products
Distributors Fresh Choice0
0.5
1
1.5
2
2.5
3
3.5
4
4
From where do you get Fresh Choice products?
Out of 4 retailers, all of them get products from Fresh Choice.
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3. Did you allot a separate display stand for Fresh Choice products in your retail outlet
Yes No0
0.5
1
1.5
2
2.5
3
3.5
4
4
Did you allot a separate display stand for Fresh Choice products in your retail outlet?
INFERENCES:
Out of 4 retailers, all of them allot a display stand for Fresh Choice in their own retail
outlets.
4. Give your ratings to following attributes of fresh choice (Quality, Brand image,
Availability).
Very Good Good Average Bad Very bad0
0.5
1
1.5
2
2.5
1
2
1
Give your ratings to following attributes of fresh choice
INFERENCES:
This question is asked to know the Quality, Brand image, Availability, in their own outlets,
the retailers gave there rating on products.
61 | P a g e
5. Do you have any problem with Distribution of Fresh Choice
Yes No0
0.20.40.60.8
11.21.41.61.8
2
2 2
Do you have any problem with Distribution of Fresh Choice?
INFERENCES:
Out of 4 Retailers, More and kashyap have problem with distribution products from Fresh
Choice, and Spencer’s and Vijetha don’t have any problem with distribution.
6. What is the mode of payment
Cash Credit0
0.5
1
1.5
2
2.5
3
3.5
1
3
What is the mode of payment
INFERENCES:
Out of 4 retailers, only Spencer’s pay on delivery and remaining 3 retailers take Fresh
Choice product on credit basis.
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7. What is the margin given by the Fresh Choice
5%-10% 10%-20% 20%-30% more than 30%0
0.5
1
1.5
2
2.5
3
3.5
4
4What is the margin given by the Fresh Choice
INFERENCES:
Out of 4 retailers, all the retailers of fresh Choice take 20% margin for every product.
8. How accurate the company charging freight bills and extra service bills
Very Satisfied Satisified Neutral Dissatisfied0
0.5
1
1.5
2
2.5
3
3.5
3
1
How accurate the company charging freight bills and extra service bills?
INFERENCES:
Out of 4 retailers, only 1retailer are Neutral with freight charges and extra service bills given
by Fresh Choice and remaining 3 retailers are satisfied with freight charges and extra service
bills given by Fresh Choice.
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9. Opinion on the timely distribution system of Fresh Choice when compared to other
bakery industry
On TimeNot on Time
Mixed
0
0.5
1
1.5
2
2.5
3 3
1
Opinion on the timely distribution system
INFERENCES:
Out of 4 retailers More, Spencer’s, Kashyap, are saying that product delivery is not on time,
and only Vijetha is getting product on time.
10. Are there any damages on Fresh Choice products through logistics
No Damages Regular Damages0
0.5
1
1.5
2
2.5
3
3.5
1
3
Are there any damages on Fresh Choice products through logistics?
INFERENCES:
Out of 4 retailers, Spencer’s getting the Product with no damages; remaining 3 retailers are
getting the damaged products
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11. Does the damage Products are taken back
Yes No0
0.5
1
1.5
2
2.5
2 2
Does the damage Products are taken back
INFERENCES:
More and Spencer’s say that damaged product are taken back, were as kashyap and Vijetha
say that damaged products are not taken back.
12. How is the overall quality, values and purchase experience from Fresh choice
Very Satisifed Satisfied Neutral Dissatisfied0
0.5
1
1.5
2
2.5
3
3
1
How is the overall quality, values and purchase experience from Fresh choice
INFERENCES:
Out of 4 retailers, More, Spencer’s, Vijetha, are satisfied with overall experience with Fresh
Choice, and remaining Kashyap was neutral with overall experience with Fresh Choice.
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CHAPTER-5
FINDINGS & SUGGESTIONS
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FRESH CHOICE aim is to be the single service provider handling all logistics complexities and
providing best service to consumer.
FINDING
According to Survey taken by Line members and Retailers it is found that Fresh Choice are
lacking in the following aspects.
On-time delivery
Improved costs and inventor
Fresh Choice is working so hard in achieving following aspects.
Multi-modal Transportation (Rail, Road, Air, Waterways)
Warehousing and Inventory Management
SUGGESTION:
Build a procurement department, which is focused on improving and efficiently
executing Procurement activities
Organization can further strengthen the employee strength in the documentation
department. This can lead to further rapidity for operations
Supplier management – Understand supplier cost structure, Optimize number of
suppliers, Enter into Long-term Contracts
Inventory management –Categorize inventory items, define policies and improve
Store processes.
According survey taken from the Line members and from the institutional sales it
know that there is a problem from the milk bread packing, and also shelf-life of the
milk bread product of Fresh Choice is less.
Margin should be increase to the Line members.
Fresh Choice Main super outlets can be turned into warehouse points so that timely
delivery is possible for all the Institutional sales and national sales.
Fresh Choice should collaborate with logistics providers so that timely delivery will
happen in reaching the Fresh Choice to all Retailers.
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Conclusion:
I have tried to cover papers on the part of the scope of logistics activities of Transportation
systems and attempts to determine the role of transport in transport systems and logistics.
Knowing that is the most of the major contents of the research include a review of the
development of logistics services, operations and personalities from different transport
activities, logistics, and logistics applications in various fields, and logistics city, and the future
direction in the development of logistics services, and cooperation with the transport regulations.
To summarize, logistics, transport, and some importance in the supply chain must be. First,
the transport system and supply have a more and more important in our society. Next, transport
and transport systems, logistics and interrelationships that the needs of logistics management and
transportation of the implementation of its activities at the same time, it can be to the success of
the transport system and supply help to improve traffic and transport, environment and
development. Third, as it contributes the highest transport costs among the relevant elements of
logistics systems, and improve the
Efficiency of transport can alter the overall performance of the transportation system and supply.
Final, play and transport an important role in the logistics system and activities appear in the
various sections of logistics services. Without linking transportation and logistics, services
cannot be a powerful strategy to bring its full play.
Logistics typically refers to activities that occur within the boundaries of single organization and
supply chain refers to networks of companies that work together and coordinate their actions to
deliver a product to market.
Logistics focuses its attention on activities such as procurement, distribution, and maintenance
and inventory management. Supply chain management acknowledges all of traditional logistics
and also includes activities such as marketing, new products development, and finance and
customer service.
Supply chain management views supply chain and the organizations in it as a single entity. It
brings a system approach to understanding and managing different activities needed to
coordinate the flow of products and services to best serve the ultimate customer.
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BIBLOGRAPHY:
www.Greggs.co.in
www.freshchoice.co.in
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