INTRODUCTION

In today’s rapidly changing business environment, ever greater demands arebeing placed on business

to provide products and services quicker

with greater added value

to the correct location

With no relevant inventory position.

Customers want more quality, design, innovation, choice, convenience andservice, and they want to spend less money, effort, time and risk.

The supply chain of a company consists of different departments, ranging fromprocurement of materials to customer service.

Supply Chain Management means transforming a company’s "supply chain"into an optimally efficient, customer-satisfying process, where the effectively ofthe whole supply chain is more important than the affectivity of each individualdepartment.

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NEED FOR SCM IN THE MARKET TODAY :

Businesses the world over are struggling to sustain competitiveness in a global zing economy. They are at present in the midst of a revolutionary transformation; that of competition shifting from industrial age to information age. During the industrial age the companies’ succeeded by how well they couldcapture the benefits from economies of scale and scope. However, information age does not allow all this and has initiated following unique challenges, which the businesses have to cope up with.

Managing uncertainty: Companies are finding difficult to predict the changes in this competitive market today. Customers are becoming competitors;competitors are becoming partners and unconventional competition is emerging.

Understanding customers: It is becoming increasingly important to understand customers needs and wants deeply and to translate these into unique value added business mission.

Understanding globalization of business: Globalization is a process, which cuts across national boundaries, integrating and connecting communities in new-spaces time combinations. The emergence of Internet as a global communication vehicle has had a profound impact on the business processes.

Since the industrial revolution, the developments in tooling, processes, materialsetc. accelerated the growth of factory system remarkably.

The concept of supply chain management is based on this view of competency alliance. In fact, effective SCM is the result of powerful alliance between customer, manufacturer, and the supplier.

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WHAT IS SUPPLY CHAIN?

Supply Chain: A supply chain is a network of facilities and distribution optionsthat performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Below is an example of a very simple supply chain for a single product, where raw material is procured from vendors, transformed into finished goods in a single step, and then transported to distribution centers, and ultimately, customers. Realistic supply chains have multiple end products with shared components, facilities and capacities. The flow of materials is not always along an arbores cent network, various modes of transportation may be considered, and the bill of materials for the end items may be both deep and large.

What is supply chain management?

Supply chain management (SCM) is the combination of art and science thatgoes into improving the way your company finds the raw components it needsto make a product or service and deliver it to customers.

SCM is also called ‘”extending” which means integrating the internal andexternal partners on the supply and process chain to get raw materials to themanufacturer and finished products to the consumer. Most companies fail tointegrate their supply chain strategies for a number of reasons; among them alack of system integration due to fragmented supply chain responsibilities. Butin neglecting integration and the broader concept of supply chain management,firms might be missing an opportunity to cut costs and boost customer service.

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The following are five basic components of SCM:

1. Plan – This is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.

2. Source – Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. And put together processes for managing the inventory of goods and services you receive from suppliers, including receiving shipments, verifying them, transferring them to your manufacturing facilities and authorizing supplier payments.

3. Make – This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.

4. Deliver – This is the part that many insiders refer to as logistics. Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.

5. Return – The problem part of the supply chain. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

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Supply chain management has the following characteristics:

An ability to secure raw material or finished good from anywhere in world.

A centralized, global business and management strategy with flawless local execution.

On-line, real-time distributed information processing to the desktop, providing total supply chain information visibility.

The ability to manage information not only within a company but across industries and enterprises.

The seamless integration of all supply chain managements, including third-party suppliers, information systems, cost accounting standards, andmeasurement systems.

The development and implementation of accounting models such as activity-based costing that like cost to performance are used as tools for cost reduction.

A reconfiguration of the supply chain organization into high-performanceteam going from the shop floor to senior management.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. These organizations have their own objectives and these are often conflicting. Marketing objectives are high customer service and maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization---there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functionscan be integrated together. Supply chain management is a strategy through which such integration can be achieved.

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Supply Chain Decisions:

Supply chain management is a cross-functional approach to managing themovement of raw materials into an organization and the movement of finishedgoods out of the organization toward the end-consumer. As corporations striveto focus on core competencies and become more flexible, they have reducedtheir ownership of raw materials sources and distribution channels. Thesefunctions are increasingly being outsourced to other corporations that canperform the activities better or more cost effectively. The effect has been toincrease the number of companies involved in satisfying consumer demand,while reducing management control of daily logistics operations. Less controland more supply chain partners led to the creation of supply chain managementconcepts. The purpose of supply chain management is to improve trust andcollaboration among supply chain partners, thus improving inventory visibilityand improving inventory velocity.Supply chain activities can be grouped intostrategic, tactical, and operational levels of activities.

Strategic decisions : strategic decisions are made typically over a longer timehorizon. These are closely linked to the corporate strategy (they sometimes the corporate strategy), and guide supply chain policies from a design perspective.

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

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Tactical decisions:

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 decisions : operational decisions are short term, and focus on activities over a day-to-day basis. The effort in these types of decisions is to effectively and efficiently manage the product flow in the "strategically" planned supply chain

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 receivinginventory.

Production operations, including the consumption of materials and flow of finished goods.

Outbound operations, including all fulfillment activities and transportation to customers.

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Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers.

Performance tracking of all activities

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Four major decision areas in supply chain management:

1) location

2) production

3) inventory

4) transportation (distribution)

And there are elements in each of these decision areas.

Location Decisions

The geographic placement of production facilities, stocking points, and sourcingpoints is the natural first step in creating a supply chain. The location of facilities involves a commitment of resources to a long-term plan. Once the size,number, and location of these are determined, so are the possible paths by whichthe product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service. These decisions should be determined by an optimization routine that considers production costs, taxes, duties and duty drawback, tariffs, local content, distribution costs, production limitations, etc. Although location decisions are primarily strategic, they also have implications on an operational level.

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Production Decisions

The strategic decisions include what products to produce, and which plants to produce them in, allocation of suppliers to plants, plants to direct customers, and direct customers to customer markets. As before, these decisions have a big impact on the revenues, costs and customer service levels of the firm. These decisions assume the existence of the facilities, but determine the exact path(s) through which a product flows to and from these facilities. Another critical issueis the capacity of the manufacturing facilities--and this largely depends on the degree of vertical integration within the firm. Operational decisions focus on detailed production scheduling. These decisions include the construction of the master production schedules, scheduling production on machines, and equipment maintenance. Other considerations include workload balancing, and quality control measures at a production facility.

Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw material, semi-finished or finished goods. They can also be in process between locations. Their primary purpose is to buffer against any uncertainty that might exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40 percent of their value, their efficient management is critical in supply chain operations. It is strategic in the sense that top management sets goals. However, most researchers have approached the management of inventory from an operational perspective. These include deployment strategies (push versus pull), control policies --- the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location. These levels are critical, since they are primary determinants of customer service levels.

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Transportation Decisions

The mode choice aspects of these decisions are the more strategic ones. These are closely linked to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transport withthe indirect cost of inventory associated with that mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. Therefore customer service levels and geographic location play vital roles in such decisions. Since transportation is more than 30 percent of the logistics costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are keys in effective management of the firm's transport strategy.

Functions of Supply chain management:

Supplier management: the goal is to reduce the number of suppliersand get them to become partners in business in a win/win relationship.The benefits are seen in reduced purchase order (PO) processing costs;increased numbers of POs processed by fewer employees, and reducedorder processing cycle times.

Inventory management: the goal is to shorten the order-ship-bill cycle. When a majority of partners’ are electronically linked, information faxed or mailed in the past can now be sent instantly. Documents can be trackedto ensure they received, thus improving auditing capabilities. The inventory management solution should enable the reduction of inventory levels, improve inventory turns, and eliminate out-of-stock occurrences.

Distribution management: the goal is to move documents related to shipping (bills of lading, purchase orders, advanced ship notices, and manifest claims). Paperwork that typically took days to cycle in the past can now be sent in moments and contain more accurate data, thus allowing improved resources planning.

Channel management: the goal is to quickly disseminate information about changing operational conditions to trading partners. In other words,technical, product, and pricing information that once required repeated telephone calls and countless labor hours to provide can now be posted to

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electronic bulletin boards, thus allowing instant access. Thus electronically linking production with their international distributor and seller networks eliminates thousands of labor hours per week in the process.

Payment management: the goal is to link the company and the suppliersand distributors so that payments can be sent and received electronically. This process increases the speed at which companies can compute invoices, reducing clerical errors and lowering transaction fees and costs while increasing the number of invoices processed.

Financial management: the goal is enable global companies to manage their money in various foreign accounts. Companies must work with financial institutions to boost their ability to deal on a global basis. They need to assess their risk and exposure in global financial markets and withglobal information as opposed to local market information.

Sales force productivity: the goal is to improve the communication and flow of information among the sales, customer, and production functions. Linking the sales force with regional and corporate offices establishes greater access to market intelligence and competitor information that can be funneled into better customer service and service quality. Companies need to collect market intelligence quickly and analyze it more thoroughly. They also need to help their customers introduce their products to market faster, giving them a competitive edge.

In sum, the SCM process increasingly depends on electronic markets because of global sourcing of products and services to reduce costs, short product life cycle, and increasingly flexible manufacturing resulting in a variety of customizable products.

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SUPPLY CHAIN STRATEGY:

Supply chain strategy will have a major impact on creating value for a companyand its supply chain partners. An effective supply chain strategy may be formulated to meet the needs of the market and integrate them with technology to generate the highest level of customer satisfaction while delivering the highest value to the shareholders.

Supply chain strategy framework

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Demand flow strategy

Collaboration strategy

Supply chain strategy framework

Customer service strategy

Technology integration strategy

1. Collaboration strategy: opportunity for collaboration among business partners will vary depending upon the organization’s perspective role in the supply chain.

Manufacturing/supplier collaboration: by collaborating with suppliers, manufacturers will derive benefits in activities such as products development, order fulfillment and capacity planning.

Manufacturer/customer collaboration: the opportunities of collaboration between manufacturers and customers are focused on demand planning and inventory replenishment. This approach ensures that the customer requirements are met efficiently.

Collaboration with third party and fourth party logistics providers: the collaboration of companies with 3rd party logistics providers focuses on jointly planning logistics activities. It also gives the company the added advantage of better packaging. The 4th party logistics organization is one of the intermediate stages along the logistics spectrum that combine the benefits of the outsourcing and in sourcing.

2. Demand flow strategy: traditionally, in supply chain management, the key focus and scope has been in managing flow of goods from suppliers through the manufacturing and distribution chain to the customer.

3. Customer service strategy: customer satisfaction level is directly proportional to the service provided by the company. Formulating a customer service strategy involves addressing three steps, namely, customer segmentation, cost to service and revenue management.

Customer segmentation: a company has to decide on the segment it wants to target for a particular commodity. It can decide not to have a homogenous market, which is unacceptable.

Cost to serve: it is important to obtain an impartial assessment of whether thethings that the customers want the feasible for the company.

Revenue management: determination of the appropriate response to the identified needs and expectations of each customer segment must be completed.The response that maximizes the firm’s profitability and growth should be determined.

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4. Technology integration strategy: developments in IT enabled the integration of business information systems, both horizontally and vertically. A number of IT-based supply chain information management tools are now available to provide intelligent decision support and execution management

Integrated SCM approach

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Supply chain management

Customer analysis

Demand &lead-time mgt

Manufacturing

Purchasing

Transportation

Materials management

Cost benefit and analysis

Inventory mgt & control

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,pull or push strategies, third party logistics.

Information: Integrate systems and processes through the supply chain toshare valuable information, including demand signals, forecasts,inventory and transportation.

Inventory Management: Quantity and location of inventory including rawmaterials, work-in-process and finished goods.

NEED OF THE STUDY:

Though bakery business has started developing in India, it still remainslargely unorganized and dominated by the small bakers. In fact in 1977-1978,the government reserved bread and biscuit manufacturing for small scale sectorsand restricted entry of large producers. During the last two decades, small andunorganized players have shared the growth in the industry. Currently there arean estimated 2 million bakeries across the country engaged in the production ofbread, biscuits and other products. The Abid Hussain Committee recommendedde-reservation of the sector. The government in the 1996-97 budgetsimplemented the recommendation and the sector was de-reserved. After thatthere has been a steady inflow of MNC’s and other organized players into thissector, Britannia Industries Limited (BIL), HLL and ITC. For the existingplayers, appropriate marketing and branding strategy will be the keys for growthand customer retention, for which understanding of consumer behavior. Some organized sectors apply the proper supply chain to retention of thecustomer. So, first know the process of food sectors.

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BACKGROUND:

HISTORY OF BISCUITS:

Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munchingon biscuits, but do they know how biscuits began? The history of biscuits can betraced back to a recipe created by the Roman chef Apicius, in which "a thick paste of fine wheat flour was boiled and spread out on a plate. When it had driedand hardened it was cut up and then fried until crisp, then served with honey and pepper."

The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin waferswhich, because of their low water content, were ideal food to store.

As people started to explore the globe, biscuits became the ideal travelling food since they stayed fresh for long periods. The seafaring age, thus, witnessedthe boom of biscuits when these were sealed in airtight containers to last for months at a time. Hard track biscuits (earliest version of the biscotti and present-day crackers) were part of the staple diet of English and American sailors for many centuries. In fact, the countries which led this seafaring charge,such as those in Western Europe, are the ones where biscuits are most popular even today. Biscotti is said to have been a favorites of Christopher Columbus who discovered America

Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of 'guilds' or professional associations. To become a baker, one had to complete years of apprenticeship - working through the ranks of apprentice, journeyman, and finally master baker. Not only this, theamount and quality of biscuits baked were also carefully monitored.

The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and they were called teacakes. They were often flavored with nothing more than the finest butter, sometimes with the addition of a few drops of rose water. Cookies in America were also called by such names as "jumbles", "plunkets" and "cry babies".

As technology improved during the Industrial Revolution in the 19th century,

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the price of sugar and flour dropped. Chemical leavening agents, such as bakingsoda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies.

Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which contains less protein than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they are known by different names the world over, people agree on one thing - nothing beats the biscuit!

Some interesting facts on the origin of other forms of biscuits:

The recipe for oval shaped cookies (that are also known as boudoir biscuits, sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed little in 900 years and dates back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to have enjoyed an oval-shapedcookie called "lady fingers" when visiting Louis XV of France.

The macaroon - a small round cookie with crisp crust and a soft interior - seems to have originated in an Italian monastery in 1792 during the French Revolution. SPRING-uhr-lee, have been traditional Christmas cookies in Austria and Bavaria for centuries. They are made from a simple egg, flour and sugar dough and are usually rectangular in shape. These cookies are made with a leavening agent called ammonium carbonate and baking ammonia.

The inspiration for fortune cookies dates back to the 12th and 13th Centuries, when Chinese soldiers slipped rice paper messages into moon cakes to help co-ordinate their defense againstMongolian invaders

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Manufacturing Process of Biscuits

1. Flour and sugar is dispensed into large mixers. The ingredients that are used in smaller quantities are hand weighed and added into the mixing bowl for each batch of dough to be mixed.

2. The ingredients are then mixed to form dough in the mixing bowl accordingto a specific mixing procedure.

3. The dough is then tipped into a hopper and gravity-fed into the doughsheeting section of the machine. In this process the dough is fed through variousrollers to form a sheet of dough. Depending on what type of biscuit is beingproduced, this process varies.

4. Different forming techniques are used to get the required shape and size ofthe piece of dough which will form the biscuit.

5. The raw biscuits are transported through a gas-fired oven on a metalconveyor band where they are baked to form fresh, warm and deliciouslysmelling biscuits. While still hot, the savory biscuits are sprayed with oil andone of a number of types of flavoring is added to produce what is required forthat particular biscuit.

6.Biscuits are baked rather than fried, so the oil merely assists the flavourparticles to cling to the biscuit surface. The flavored biscuits then travel along acooling conveyor in order to cool off.

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7. Once the biscuits have been cooled, they are packed into wrappers, cartonsand cases, ready for distribution to one of the warehouses

8. Quality checks are conducted at key points in the process to ensure processcontrol and product quality is constantly maintained at a high standard.

9. The finished product is then transported in cases to state-of-the-artdistribution warehouses. Stock is loaded as per delivery orders and sent to thevarious customers

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Britannia Industries:

Britannia Industries Limited is an Indian company based in Kolkata that isfamous for its Britannia brand of biscuit, which is highly recognized throughoutthe country. The Company's principal activity is the manufacture and sale ofbiscuits, bread, Rusk, cakes and dairy products like cheese, butter and milk. Thebrand names of biscuits include Vita Marie Gold, Tiger Variants, Nutri choiceJunior, Good Day, 50 50 variants and Good Morning. Its Non-ExecutiveChairman is Mr. Nusli Wadia, and Chief Executive is Ms. Vinita Bali. TheBritannia's fame is largely acknowledged through the colorful Britannia logos,Indian cricketers such as Virender Sehwag, and Rahul Dravid wear on theirbats.

Britannia's controlling stake is jointly with Groupe Danone and NusliWadia. Groupe Danone is one of the leading players in the world in bakeryproducts business. The Company is based in the Indian city of Kolkata. Britannia Industries Ltd (BIL) -- one of India's leading food companies & aleading manufacturer of biscuits in the country has always been the pioneer inproduct innovation. Biscuits contribute to nearly 90 % of Britannia's totalturnover, the rest coming from a rapidly growing portfolio that includes Cakes,Bread and Rusks. Britannia is synonymous with 'biscuits' and its brands likeMarieGold, Good Day, 50-50, Treat and Tiger have become household names inthe country.

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Company overview:

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today. The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark. On the operations front, the company was making equally dynamic strides. In1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its newcorporate identity - "Eat Healthy, Think Better" - and made its first foray intothe dairy products market. In 1999, the "Britannia Khao, World Cup Jao"promotion further fortified the affinity consumers had with 'Brand Britannia'.

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Britannia strode into the 21st Century as one of India's biggest brands andthe pre-eminent food brand of the country. It was equally recognized for itsinnovative approach to products and marketing: the Lagaan Match was votedIndia's most successful promotional activity of the year 2001 while the deliciousBritannia 50-50 Maska-Chaska became India's most successful product launch.In 2002, Britannia's New Business Division formed a joint venture withFonterra, the world's second largest Dairy Company, and Britannia NewZealand Foods Pvt. Ltd. was born. In recognition of its vision and acceleratinggraph, Forbes Global rated Britannia 'One amongst the Top 200 SmallCompanies of the World', and The Economic Times pegged Britannia India's2nd Most Trusted Brand. Today, more than a century after those tentative first steps, Britannia'sfairy tale is not only going strong but blazing new standards, and that minisculeinitial investment has grown by leaps and bounds to crores of rupees in wealthfor Britannia's shareholders. The company's offerings are spread across thespectrum with products ranging from the healthy and economical Tiger biscuitsto the more lifestyle-oriented Milkman Cheese. Having succeeded in garneringthe trust of almost one-third of India's one billion populations and a strongmanagement at the helm means Britannia will continue to dream big on its pathof innovation and quality. And millions of consumers will savoir the results,happily ever after.

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Britannia Industries: Buy

BRITANNIA Industries has sure come a long way from being a companywith a stodgy but well-recognized brand name and an inconsistent financialperformance in the mid-1990s.

After a thorough overhaul of the operational structure, a revamp of itsproduct portfolio and an ambitious foray into new areas, such as dairy productsand snack foods, the company has managed to turn in robust financialperformance over the past four years.

The stock market has also taken notice; re-rating the stock, pushing up itsprice earnings multiple from 14-15 times in 1997 to around 30 times now. Thestock now ranks among the preferred investment options within the universe ofFMCG companies. So, what has driven Britannia's valuations and what are itsprospects?

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The origin of eat healthy think better:

Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the reason for its success has been its ability to resonate with the changesin consumer needs-needs that have varied significantly across its 100+ year epoch. With consumer democracy reaching new levels, the one common thread to emerge in recent times has been the shift in lifestyles and a corresponding awareness of health. People are increasingly becoming conscious of dietary careand its correlation to wellness and matching the new pace to their lives with improved nutritional and dietary habits. This new awareness has seen consumers seeking foods that complement their lifestyles while offering convenience, variety and economy, over and above health and nutrition. Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative - that was alsodelightful and tasty.

Thus, the new logo was born, encapsulating the core essence of Britannia - healthy, nutritious, and optimistic - and combining it with a delightful product range to offer variety and choice to consumers.

Global partners:

The Wadia Group of India along with Group Danone of France is equalshareholders in ABIL, UK which is a major shareholder in Britannia IndustriesLimited. GROUPE DANONE is an International FMCG Major specializing inFresh Dairy Products, Bottled Water and Biscuits/Cereals. One of the Worldleaders in the food industry, these are some of the laurels it possesses:

worldwide in Fresh Dairy Products

worldwide equally placed in Bottled Water (by volume)

worldwide in Biscuits and Cereal Products

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What’s make a Britannian:

If you think Britannians are extraordinary individuals who arepassionate about everything they do…create inspiration througheverything they do…and succeed in everything they do…you’re probablyright. Britannians are hand-picked for a singular purpose…to perpetuallyensure Market Leadership and generate exemplary performance in everyfunction. Britannians exhibit the following leadership behaviors (wefondly call BULBs – Britannia Universal Leadership Behaviors)

Integrity

Team Orientation

People Development

Learning Orientation

Customer Orientation

Quality Orientation

Drive for Results

Entrepreneurial Spirit

System and Process Orientation

Communication

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Milestones:

1892The Genesis - Britannia established with an investment of Rs. 295 in Kolkata

1910Advent of electricity sees operations mechanized

1921Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas ovens

1939 – 44Sales rise exponentially to Rs.16,27,202 in 1939

During 1944 sales ramp up by more than eight times to reachRs.1.36 crores

1975Britannia Biscuit Company takes over biscuit distribution fromParry's

1978Public issue - Indian shareholding crosses 60%

1979 Re-christened Britannia Industries Ltd. (BIL)

1989The Executive Office relocated to Bangalore

1992BIL celebrates its Platinum Jubilee

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1993Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Groupe DANONE in BIL

1994Volumes cross 1,00,000 tons of biscuits

1997Re-birth - new corporate identity 'Eat Healthy, Think Better' leads tonew mission: 'Make every third Indian a Britannia consumer'

BIL enters the dairy products market

1999"Britannia Khao World Cup Jao" - a major success! Profit up by37%

2000Forbes Global Ranking - Britannia among Top 300 smallcompanies

2001BIL ranked one of India's biggest brands

No.1 food brand of the country

Britannia Lagaan Match: India's most successful promotionalactivity of the year

Maska Chaska: India's most successful FMCG launch

2002BIL launches joint venture with Fonterra, the world's secondlargest dairy company

Britannia New Zealand Foods Pvt. Ltd. is born

Rated as 'One amongst the Top 200 Small Companies of the World'

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by Forbes Global

Economic Times ranks BIL India's 2nd Most Trusted Brand

Pure Magic -Winner of the Worldstar, Asiastar and Indiastar awardfor packaging

2003'Treat Duet'- most successful launch of the year

Britannia Khao World Cup Jao rocks the consumer lives yet again

2004

Britannia accorded the status of being a 'Superbrand'

Volumes cross 3,00,000 tons of biscuits

Good Day adds a new variant - Choconut - in its range

2005Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes thepopular chant!

Britannia launched 'Greetings' range of premium assorted giftpacks

The new plant in Uttaranchal, commissioned ahead of schedule.

The launch of yet another exciting snacking option - Britannia 50-50 Pepper Chakkar.

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Brand milestones:

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Introduction of priyagold biscuits:

The wondrous magical journey of our company Surya Food & Agro Ltd.began in Oct.1993 & since then we have been one of the leading manufacturersof biscuits in northern India. Our brand “PRIYAGOLD” has been a perennialhousehold favorite since then. On a profound level spread in to western as wellas southern India, the inevitable cycle of distribution network has helped us tospread into western India as well. Our obsession is to make the finest qualitybiscuits available to the consumers & our constant endeavor is to provide ourconsumers, a palate to look forward to a taste & flavor that is uniquely“priyagold”.

We are operating in the new age, ruled by the dizzying pace of technology,poised to pace up with emerging trends thus improving quality standards everytime. Our fully automated ovens bake the biscuits round the clock and then theyfind their way to the automatic packing units at the company’s plant in Surajpur,Greater Noida (U.P.), catering the ever growing demand of “PRIYAGOLD”biscuits. This is reflected through our brand’s positioning which says “Haq SeMaango”, a positioning that was formulated keeping in mind that everyone hasthe right to good taste and the right to ask for it. We feel that the means tofinding the future lies in believing in ourselves. Our over the period created trustand confidence, can never be destroyed, just like the eternal force of nature. Weadhere to ensure that “PRIYAGOLD” continue moving forward towardsachieve best quality for total consumer’s satisfaction.

BP Agarwal, chairman, Surya Food & Agro Limited, the maker of Priyagold brand of biscuits, is a small regional player who presents an insight into chaste Indian entrepreneurship and the minds of its practitioners. And global giants would do well to take heed, for these are the local fighters who have not allowed global brands to make a clean sweep of the markets in different industries. They continue to nag global brands in their own inimitable local ways. "They have all the resources while we are small players in this business," justifies Agarwal, with a note of sarcasm. While Agarwal maintains that Priyagold is a small local brand, he's quick to flaunt his achievements in select markets. "We sell more biscuits than Britannia in UP and have a share of 25-30 per cent," he boasts. In other towns and cities of northern India, Priyagold has become a determining factor for whatever largeplayers like Britannia and Parle plan to do. From modest sales of less than Rs 28crores in 1998, Priyagold has become an Rs 100 crores brand. And the target this year is Rs 200 crores. "We hope to cross the Rs 400 crores mark by 2004-end, when we'll be selling in the South and the East and expanding in the West,"says Agarwal. That may not impress the DANONE’s of the world, but

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considering that the growth for Priyagold comes primarily from a limited geographical coverage, it speaks volumes for the potential of the Indian market. Priyagold hasn't succumbed to pressures from mega-brands Britannia and Parle, which enjoy greater clout due to large product portfolios. Not all distributors and retailers are happy with big brands, claims Agarwal: "We've tried to give a healing touch to egos bruised by the arrogant attitude of the MNCs and large companies." Hand-in-hand with better returns, it can work wonders. And Agarwal gives margins that are far more attractive than those offered by the large players. Distributors get seven per cent against 4-4.5 per cent from Britannia, and retailers get 20-25 per cent rather than an industry average of 10-15 per cent in the organized sector. Unlike bigger companies, Agarwal ensures distributors operate in clearly demarcated territories so they are able to cover all retail outlets in their areas more efficiently. "This allowed a faster inventory turnover," says Agarwal. At the same time, Agarwal identified newer segments and flavors where there was virtually no competition, and launched variants like Kesar Bite, Cheese Crackers and Cashew Chat Masala. In the cream segment, which accounts for almost 40 per cent of the total biscuit market by volume, Priyagold had the regular chocolate, orange and elaichi. But Agarwal decided to target kids and launched new flavors like butter,chocolate and strawberry. "We wanted to give consumers a new base of flavors and train them to experience new tastes," he explains. Today he offers around 20varieties, and retailers have begun to see Priyagold as an alternative to big brands. Agarwal has gone more by gut feel and understanding of the consumer, than relying on marketing textbooks. In order to emphasize the value-for-money proposition, Agarwal focused on economy packs and Priyagold was the first to enter the 250 gm segment when its Butter Bite was launched in 1993. Seeing the success of Butter Bite, Britannia's Good Day, which sold in 100 gm packs (priced at Rs 10), also entered the 250 gm segment at Rs 18, the same as the former. Agarwal takes pride in the fact Priyagold has strength to make big players react. Today Priyagold biscuits come in 100 gm, 250 gm and ATC packs. When Britannia introduced its Marie sachet of two, Priyagold responded with a pack of four at the same price of one rupee. Agarwal is targeting hospitals like Apollo for these sachet packs. According to Radhika Roy, national qualitative head, NFO India, biscuits, as a category, bring certain category boundaries. Overall, (barring the cream variety) most formats are driven by 'rational' consumption triggers and aspects like taste, indulgence and gratification are less dominant. "Often it's as a filler, cheap hospitality item or sustenance that one buys biscuits," she says. And this is the need gap that Agarwal wants to fill.

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The larger players have been trying to change this by imbuing the category with higher order rational vales (health, vitamins etc). For Priyagold, it makes sense to push sales through salience and retail measures. "The strategy in the short term to build critical mass is good from their point of view. But when theybecome significant players, they will have to look at more enduring and long-term initiatives", says Roy. That will be the challenge for people like Agarwal. After all, the task of brand differentiation is a huge one, expensive and fraught with many pitfalls. Analysts agree that while not necessary for market leaders, for challengers, the strategy adapted by Priyagold seems more prudent and effective. "Instead ofreinventing some of the issues, they've focused on value-adding, such as puttingmore sugar or making biscuits softer and crunchier," adds Roy. For six years since its launch in 1994, Priyagold clung to its obvious target consumer, the middle and lower middle class in SEC B and C. Direct competition came from local cousins in north India, like Apsara, Anmol, Cremica and Crown. Agarwal had enough money (from his oil mills) to pump into his new venture. Clearly savvier than local rivals, he communicated with consumers by spending on the mass media. This was enough for him to leave local rivals far behind and quickly becomeacceptable to the middle class. Starting with UP and New Delhi, Priyagold expanded into Punjab, Haryana, J&K and Rajasthan. While the brand got a stronghold on the SEC B and C consumer segment, over the years, it distanced itself from the high-end consumers, who turned to Britannia and Parle. "We're still not acceptable to top-end consumers in the large cities," confides a senior staffer in the company. Last year, Agarwal decided to take the brand to up market retail shelves in Delhi to attract consumers in the upper income strata. But resistance came from large retailers in localities like Greater Kailash and Panchsheel Park. In a bid to convince them Agarwal undertook a complete packaging overhaul across the entire range. Agarwal convinced big-time retailers to let Priyagold set up a counter and was even willing to pay them says a big Priyagold distributor. The results were good, if not amazing — the brands found a place in swanky outlets, like Morning Stores in Delhi. Although he hiked Priyagold advertising budget from Rs 5 crores last year to Rs 7 crores, Agarwal believes smaller players will not be able to match resources of nationalmarketers and MNCs when it comes to frills and imagery. "It's more essential toimprove processes in your back-end operations to convince people about qualityand hygiene," he says. That's surely one thing consumers evaluate while considering local brands. Therefore, Agarwal is pumping money into extensively modernizing his factory. Surya is setting up a new integrated plant at Surajpur on the outskirts of Delhi at a whopping Rs 50 crores, which will have flour, oil mill and biscuit

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making and packaging units. Another new plant is being set up in Lucknow at a cost of Rs 20 crores so that Priyagold can cater to the eastern UP market better. Agarwal is now importing a state-of-the-art cream sandwiching machine for Rs 5 crores — which, he claims, nobody has in the whole of south Asia. These may be small things for global giants, but give tremendous joy to Agarwal.

Priyagold to take on Britannia on its turf:

EVEN as the `Big Two' - Britannia and Parle - fight a pitched battle in theRs 3,000-crore biscuits market, one regional player that has been quietlygrabbing market share and forcing competition to have a rethink of theirstrategies, is the Delhi-based, Rs 150-crore Surya Food & Agro Ltd, marketer ofPriyagold biscuits.

The decade-old Surya Food, which has stronghold markets in Uttar Pradesh,Punjab and Haryana, plans to take on Britannia on its own turf later this year. Inother words, the company plans to foray in the Southern market by the end-2003, beginning with Karnataka. "Subsequently, we intend to set up amanufacturing unit in the State," Mr Shekhar Agarwal, Director, Surya Food &Agro, told Business Line. He added that the company's immediate priority wasto double turnover - to Rs 300 crore - in the current fiscal.

Meanwhile, Surya Food plans to set up a fresh manufacturing facility inGreater Noida (UP) next financial year, on an investment of Rs 20 crore. Thecompany's third manufacturing base in Lucknow, set up on an investment of Rs5 crore, kicked off production in February this year, and is expected to beginproduction in full swing later this month, he said. Surya Food's existingmanufacturing bases are in Surajpur (where it has seven biscuit lines) andFaridabad (a franchisee unit).

The Priyagold brand already claims market leadership in the non-glucosebiscuit segment, which, according to industry estimates, accounts for 30 percent of the overall biscuits market. Meanwhile, Britannia's market sharedropped to 45.2 per cent in October from 46.5 per cent in September last year,according to AC Nielsen data.

He ruled out the privately-held Surya Food entering into joint ventures ortie-ups at this stage, even as he admitted that several multinationals haveexpressed interest in either buying out or forging strategic alliances with his

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company. Priyagold which currently has 23 varieties of biscuits, plans foray intosalty biscuits next year.

The company plans to hike its consolidated ad spend from Rs 5 crore lastyear to Rs 8 crore this fiscal. Exports of Priyagold biscuits to markets such asDubai, Muscat and Oman are on the cards, and the first consignment is expectedto be shipped later this year.

Priya Food launches scheme for Priyagold biscuits:

Priyagold brand biscuits manufacturer, Surya Food & Agro, isaggressively promoting its brand with the launch of a scheme titled Khaao AurKhelo. According to the scheme, on every purchase of Rs50 and above worth ofPriyaGold biscuits, customers will receive a free gift coupon, enabling him tobecome eligible for a prize. The first prize will be a Mercedes Benz car,followed by Maruti Alto (five second prizes), Tanishq Jewellery (10 thirdprizes) and a Compaq Laptop (10 fourth prizes).

Priyagold forays into juices; sets up unit in Noida:

DELHI NCR-based Surya Foods and Agro Ltd, manufacturers ofPriyagold biscuits, has forayed into the juices segment. It has set up a state-of-the-art manufacturing facility in Greater Noida with an investment of Rs 25crore. The plant has a capacity of producing 1.5 lakh liters of juice per day.

Branded `Freshgold', the one-liter juice in cartons is available insupermarkets and malls in and around Delhi for Rs 60. Speaking to BusinessLine, Mr B.P. Agarwal, Chairman, Surya Foods and Agro Ltd, said, "Though thejuices are currently available only in the northern markets, we plan to launch itin the south by the next month. We are also working on a specific distributionnetwork for the same."

The Rs 300-crore turnover company is also setting up a biscuitmanufacturing plant in Uttaranchal to avail of the tax incentives. "We areinvesting around Rs 20 crore on the plant with a capacity of 100 tons per day,which would be operational by December 2006," Mr Agarwal said.

The company has been keeping a low profile with regard to advertising andpromotions after its not-so-good experience with the `Priyagold khaao or khelo'contest. According to Mr Agarwal, "The retailers did not give out the coupons tothe end-consumers. Consequently, we had to withdraw the scheme from themarket." However, he said that the company has earmarked around Rs 3 crore

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for promoting the juices. While tele-commercials have already begun on IndiaTV, the company is hopeful of running them on all other channels by the nextfortnight.

It is also in the process of sprucing up its exports operations. Currently itexports its biscuits to countries such as Dubai and Nepal. According to MrAgarwal, "The high level of taxation in the domestic market, which is a majorconcern, is one of the reasons why we are looking to increase export volumes."

Explaining further, he pointed out that high input costs and taxes areaffecting margins and profits. As fierce competition from other players ispreventing the company from increasing prices, he said, "High taxes are evenforcing manufacturing units to close down. In fact, we have already had to shutdown two out of six company's plants."

While speaking on the company's performance, he said, "We face immensecompetition not just from competitors in organized retail but also from theunorganized market which holds almost 40 per cent of the market share and hasthe benefit of not being subject to any taxes." The government needs to lookinto the matter before the situation worsens, he added.

Before data analysis we should know the strategic area of acompany. So that a company can analyze the business processes.

Strategic areas:

Leadership: Investing in leaders who are personally involved in thedevelopment and achievement of the organizations vision and CorporateObjectives, who develop values required for long-term success, and implementthese via appropriate actions and behaviors and manage the workforce in a fairand supportive manner.

People: Developing a learning organization which cultivates the full potentialof its people at an individual, team and organization level and provides themwith the competencies and skills needed to meet service requirements in aconstantly changing environment.

Policy: Developing an organization, which manages fairly, consistently andeffectively within a sound framework of stakeholder focused strategies,supported by relevant policies, plans, objectives, targets and processes.

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Partnership: Building an outward looking organization, which values thediversity of the community it serves, seeks to reflect this within its workforce,and nurtures partnerships for the benefit of the community.

Resources: Continuously improving the use of resources (both internal andexternal) to maximize the effectiveness and efficiency of the Organization.

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Why an organization should decide the strategies?The strategies provide some basics:

1. Ensure the provision advisory and support services across all services.2. Identify the requirements and priorities for all functions in accordance withthe corporate objectives, the corporate plan and the Departmental Service Plansof all other Departments.3. Seek to provide Best Value in the provision of all services4. Establish qualitative and quantitative performance targets and indicators tocontinually improve standards.5. Promote the role and continuously develop the employees engaged in servicedelivery, supporting and enabling them to deliver quality and cost effectiveservices.6. For Departmental representatives to meet on a regular basis to ensure thatthere is clear communication and to develop best practice internally.7. To work with the trade unions and to seek to maintain effective employeerelations and in doing so produce a clear statement of shared values between theCouncil and representatives of the workforce.

The food marketing and supply chain management group combines expertise inmarketing and supply chain management in the context of the food industry.Current research is focused on a number of inter-related issues.

Key areas include:

food safety and risk management

demand management and promotional planning

brand equity and segmentation

food labeling and communication

sustainable sourcing

Corporate social responsibility.

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Vertical co-ordination and Supply Chain Relationships

Supply Chain management (SCM) is concerned with the sharing ofinformation, in order to reduce uncertainty and risk, save time, reduce costs,increase effectiveness and add value. In competitive markets continualimprovement is essential but difficult to achieve when businesses work in avacuum. The food industry has been slow to emulate other industries that haveembraced the principles of SCM in order to meet consumer needs more quickly,more effectively and more efficiently

Demand management and promotional planning

Management of demand is increasingly recognized as a key area forimproving the efficiency of supply chain operations. There has beenconsiderable work in both the academic and practitioner fields as to how toimprove the management of demand, ranging from the early work on demandamplification to more recent initiatives in Efficient Consumer Response (ECR)and Collaborative Planning Forecasting and Replenishment (CPFR).

Food Safety and Risk Management

The need for greater scrutiny of farming and food manufacturing practicesand effective traceability back to the farm (and beyond) has imposed additionalcosts on the agri-food industry but provided much-needed momentum forimproved communication within the food chain. However, compliance remainsa challenge, for the rule makers as well as the rule breakers. Research in thisarea includes the exploration of public-private partnerships in the regulation offood safety , vertical co-ordination as a risk management strategy and the role ofassurance schemes in developing transparent integrity in the food chain and theimpact of food labeling and public sector communication campaigns on foodpurchasing behavior.

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Brand loyalty and market segmentation

As competition for market share and 'share of stomach' intensifies in a foodretailing industry that is highly concentrated and reaching maturity, so thedevelopment, growth and defence of brand loyalty becomes increasinglyimportant for food manufacturers and retailers at risk of falling into thecommodity trap. Our research in this area focuses on the use of alternativemethods of market segmentation and particularly psychographics to developbrand loyalty amongst distinct consumer groups and the way in which differentpromotional tools can be used to encourage brand switching behavior.

Food Labeling and Communication

Consumers are becoming increasingly aware of (and concerned about) thecomposition (health and safety), provenance and environmental/animal welfareimplications associated with the foods they purchase. The Government is alsogrowing increasingly concerned about the health of the nation and isbecoming more involved in promotional and educational campaigns in an effortto raise awareness of the dietary issues and encourage the consumption of morehealthy foods.

Sustainable Sourcing and Corporate Social Responsibility

Consumers are becoming increasingly aware of and concerned about theenvironmental, social and ethical issues associated with food production,distribution, manufacturing and retailing. These impacts most strongly on foodretailers and manufacturers, who are global sourcing strategies, have fuelled the'food miles' debate and whose relationships with suppliers have raised concernsabout ethical trading practices and the sustainability of food production.

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Supply Chain Business Process Integration:

Successful SCM requires a change from managing individual functions tointegrating activities into key supply chain processes. Supply chain businessprocess 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 supplychain requires continuous information flows, which in turn assist to achieve thebest product flows. However, in many companies, management has reached theconclusion that optimizing the product flows cannot be accomplished withoutimplementing a process approach to the business. The key supply chainprocesses 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 theseprocesses stated by Lambert such as:

a. Customer service Management

b. Procurement

c. Product development and Commercialization

d. Manufacturing flow management/support

e. Physical Distribution

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f. Outsourcing/ Partnerships

g. Performance Measurement

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a) Customer service management process

Customer service provides the source of customer information. It alsoprovides the customer with real-time information on promising dates andproduct availability through interfaces with the company's production anddistribution operations.

b) Procurement process

Strategic plans are developed with suppliers to support the manufacturingflow management process and development of new products. In firms whereoperations extend globally, sourcing should be managed on a global basis. Thedesired outcome is a win-win relationship, where both parties benefit, andreduction times in the design cycle and product development is achieved. Also,the purchasing function develops rapid communication systems, such aselectronic data interchange (EDI) and Internet linkages to transfer possiblerequirements more rapidly. Activities related to obtaining products and materialsfrom outside suppliers. This requires performing resource planning, supplysourcing, negotiation, order placement, inbound transportation, storage andhandling and quality assurance. Also, includes the responsibility to coordinatewith suppliers in scheduling, supply continuity, hedging, and research to newsources or programmes.

c) Product development and commercialization

Here, customers and suppliers must be united into the product developmentprocess, thus to reduce time to market. As product life cycles shorten, theappropriate products must be developed and successfully launched in evershorter time-schedules to remain competitive. According to Lambert andCooper (2000), managers of the product development and commercializationprocess must:

1. coordinate with customer relationship management to identify customer-articulated needs;

2. select materials and suppliers in conjunction with procurement, and

3. Develop production technology in manufacturing flow to manufactureand integrate into the best supply chain flow for the product/marketcombination.

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d) Manufacturing flow management process

The manufacturing process is produced and supplies products to thedistribution channels based on past forecasts. Manufacturing processes must beflexible to respond to market changes, and must accommodate masscustomization. Orders are processes operating on a just-in-time (JIT) basis inminimum lot sizes. Also, changes in the manufacturing flow process lead toshorter cycle times, meaning improved responsiveness and efficiency ofdemand to customers. Activities related to planning, scheduling and supportingmanufacturing operations, such as work-in-process storage, handling,transportation, and time phasing of components, inventory at manufacturingsites and maximum flexibility in the coordination of geographic and finalassemblies postponement of physical distribution operations.

e) Physical Distribution

This concerns movement of a finished product/service to customers. Inphysical distribution, the customer is the final destination of a marketingchannel, and the availability of the product/service is a vital part of each channelparticipant's marketing effort. It is also through the physical distribution processthat the time and space of customer service become an integral part ofmarketing, thus it links a marketing channel with its customers (e.g. linksmanufacturers, wholesalers, retailers).

f) Outsourcing/Partnerships

This is not just outsourcing the procurement of materials and components, butalso outsourcing of services that traditionally have been provided in-house. Thelogic of this trend is that the company will increasingly focus on those activitiesin the value chain where it has a distinctive advantage and everything else it willoutsource. This movement has been particularly evident in logistics where theprovision of transport, warehousing and inventory control is increasinglysubcontracted to specialists or logistics partners. Also, to manage and controlthis network of partners and suppliers requires a blend of both central and localinvolvement. Hence, strategic decisions need to be taken centrally with themonitoring and control of supplier performance and day-to-day liaison withlogistics partners being best managed at a local level.

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g) Performance Measurement

Experts found a strong relationship from the largest arcs of supplier andcustomer integration to market share and profitability. By taking advantage ofsupplier capabilities and emphasizing a long-term supply chain perspective incustomer relationships can be both correlated with firm performance. Aslogistics competency becomes a more critical factor in creating and maintainingcompetitive advantage, logistics measurement becomes increasingly importantbecause the difference between profitable and unprofitable operations becomesnarrower.

According to experts internal measures are generally collected and analyzed bythe firm including

1. Cost

2. Customer Service

3. Productivity measures

4. Asset measurement, and

5. Quality.

External performance measurement is examined through customer perceptionmeasures and "best practice" benchmarking, and includes:

1) Customer perception measurement

2) Best practice benchmarking

Components of Supply Chain Management are

1. Standardization

2. Postponement

3. Customization

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ADVANTAGES AND CHALLENGES

Advantages Challenges Increasing disposable income;

changing life style of consumers High tariffs and increasing

non- tariff barriers

Growing health and hygieneawareness among the middleclass

Antiquated food laws andinternal policies which restrictmarketing

Government’s high priority onfood-processing industry

Inadequate infrastructurefacilities, like cold storage androads

Plentiful availability of rawmaterials

Increasing competition fromlocal players

Increasing presence ofmultinational companies

Long and fragmented supplychain

Modernizing retail sector in bigcities

Problems in tapping the vastrural market and unorganizedretail sector

Move towards a new “FoodSafety and Standards” legislationby the government

Consumer preference for freshfoods

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SUGGESTIONS:

Among the factors, which have contributed the most towards growth aremarket related factors and IT factors like rise in e-commerce and usage ofInternet. The food and beverage industry has very small margins and is verydynamic .for these accurate supply chain information is absolutely key, not justfor planning, but also for operational efficiency. Britannia biscuits industries hasa great opportunity to take advantage of the modern technologies available thatcan help it to increase the level of customer service, create new operationalefficiencies, reduce risk, and increase profitability. It’s still a vastly untappedarea of supply chain management. The common factors which have contributed towards manufacturing andservice both are rise in e commerce and sourcing out. Globalisation andLiberalisation policies have benefited the service sector more than themanufacturing sector. Improving supply chain processes requires better collaboration betweenretailers and suppliers. So keep good relation with them. The customers today are not very forgiving, referring to the consequences ofmissed delivery schedules. If a company was able to manufacture a productwith the right quality and the right price but missed on delivery, the other twogot nullified. So company should deliver on right time. Services should bestandardized. Managing the supply chain was not just about transportation of goods. It wasabout managing the mismatch of stocks, looking at high inventory andeliminating premium freight, and managing many suppliers. There is the need for improving infrastructure to take advantage of the waveof outsourcing.

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CONCLUSIONS:

During this thesis I have read lots of material about the organization andtheir process of manufacturing the products. I find one similarity between theseis that the organizations want value for their money. They want quality andquick services. This is because time saved is the money gained. So thatorganizations fulfill the requirement of the customers with the satisfaction andmake good relations. Britannia industries also try to give maximum satisfactionto their customers. The company main motive is to provide the right quality toright customer at right time with satisfaction. Company is using supply chainsto control the cost.

The Britannia brand is all about eating healthy, to lead a better life. Itadvocates values that stand for health, hygiene, family, trust and taste. It reflectsthe strong link between physical and mental well-being that is so important to aperson, and is typically a result of what one eats. Today, Britannia, driven by apassion for excellence, manifested by its innovative thinking, has been able toweave itself into the fabric of the consumer's everyday life. While Britanniastrives to give consumers a healthier life, the consumer on the other hand, hascome to expect innovation from Britannia's offerings - a huge challenge for thecompany.

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Showcase and brand stories:

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BIBLIOGRAPHY:-

Newspapers and manuals:

Financial Daily from THE HINDU group of publications Sunday, Feb 03,2002

Financial Daily from THE HINDU group of publications Friday, Apr 04,2003

Times news network[ Wednesday, October 16, 2002] Financial Daily from THE HINDU group of publications Saturday, Nov

20, 2004

Websites:

http://www.thehindubusinessline.com. www.whatiteez.com http://www.mofpi.nic.in/fpipolicy.htm http://www.britanniaindustries.htm www.britannia .co. in/brandstories-tiger.htm http://www.supply-chain.org/. http://en.wikipedia.org/wiki/Supply_chain_management http://www.lawson.com/.

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Books:

Frontiers of electronic commerce, KOLKOTA. Page-52, 53, 442. Supply chain management: concepts and cases. page-33- 36 Lee, H. L. and C. billing ton. Material Management in Decentralized

Supply Chains. 835-847. Lee, H. L., and C. Billington. Supply Chain Management: Pitfalls and

Opportunities. 65-73 Cooper, M. C. and L. M. Ellram. Characteristics of Supply Chain

Management and the Implications for Purchasing and Logistics Strategy.13-24.

Houlihan J. B. 1985. International Supply Chain Management.22-38. Lambert, D & Cooper, Industrial Marketing Management. Pages 65-83

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