Neeraj Jha Final Projiect

Amul “The taste of India”

Summer Internship Project Report

Transportation cost and crate management “A Case Study of Amul Company” Submitted to D R .V.K.D

ESH PANDE

( HO D )

2007-2008 Company Guide:

Name of Trainees :

Mr.Jyoti Mukharjee

Mr.Neeraj kumar jha

“The taste of India”

Duration of the project: 55days (Between May to July)

Shri Sant Gajanan Maharaj College of Engineering Department Of Business Administration and Research Shegaon Pin No : (444203) (M.S)

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Amul “The taste of India” (Accredited By N.B.A, AICTE New Delhi & ISO 9001:2000) Website: http://www.ssgmce.org

Gujarat Cooperative Milk Marketing Federation Ltd Index Sr.No

CONTENT

Page No 3

1.

Acknowledgement

2.

Introduction

3.

Company profile

4.

Objective of project

5.

Research methodology

11-12

6.

Data collection

13 -14

7.

Data analysis

15 -19

8.

Findings

20

9.

Recommendations

21

10.

Conclusion

22

11.

Bibliography

23

12.

Appendix

24

4 5–9 10

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Amul “The taste of India”

ACKNOWLEDGEMENT It is my pleasure to place on record my sincere gratitude towards my guide. Mr. J. Mukharjee Gujarat co-operative Milk Marketing Federation Ltd New Delhi,who spent his precious time providing continuous ideas and expert guidance to my project work. It was his direction and encouragement at every moment and step that motivated me to steer the research work confidently and successfully. I am also thankful to our respected Auditor, Mr. Somveer singh and Mr.Goldi Robert, who provided me all the information about crate and transportation cost that was helpful for my project work. I am indebted to my respected parents because of whose blessing I have not been able to carry out this work successfully. I am also thankful to my friends who directly or indirectly help me a lot. I would like to thank Mr.Kumud Ranjan Jha, who has made a great effort and continuous support to provide this opportunity in such a company like Amul. Last but not the Lea st, I would like to pray my divine source of inspiration Shri Sant Gajanan Maharaj whose blessing always back me.

Mr.Neeraj Kumar Jha 3

Amul “The taste of India” MBA (Finance)

Introduction Amul (Anand Milk Union Limited), formed in 1946 is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. AMUL is based in Anand town of Gujarat and has been a sterling example of a cooperative organization's success in the long term. It is one of the best examples of cooperative achievement in the developing world. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere." The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand . Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets. Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognized as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF. Amul was formally registered on December 14, 1946. The brand name Amul, sourced from the Sanskrit word Amoolya, means priceless. It was suggested by a quality control expert in Anand. Some cite the origin as an acronym to (Anand Milk Producers Union Limited).

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Amul “The taste of India”

company profile

CEO Type Founded Headquarters Key people Industry Revenue Employees Website Total turnover

B M Byas Cooperative 1946 Anand, India Chairman, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) Dairy Template:Revenue$1 billion USD (in 2006-07) 2.41 million milk producers www.amul.com 5,000 crore plus in end of March 2008.

India ranked nowhere amongst milk producing countries in the world in 1946. Gradually, the realization dawned on the farmers with inspiration from then nationalist leaders Sardar Vallabhbhai Patel (who later became the first Home Minister of free India) and Morarji Desai (who later become the Prime Minister of India) and local farmer, freedom fighter and social worker Tribhovandas Patel, that the exploitation by the trader could be checked only if they marketed their milk themselves. Amul was the result of the realization that they could pool up their milk and work as a cooperative. Products :Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade. THE VARIANTS OF MILK PRODUCED ARE:  Amul Gold 12*1 liters (Full Cream)-G1LT & 24*500ml (Full Cream)G500.  Amul Taaza 12*1 liters(Full cream) & 24*500ml(Full cream).  Amul double toned milk 500ml-T500.

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Amul “The taste of India”

Company process goes like this:  The Raw Milk is collected by different unions in Gujarat, the largest milk union is Mehsana Milk union in Gujarat. in deferent containers. This Milk is then stored by the dairy farmers in their plants. Then this Milk is transported to the Amul plants through member union for pasteurizing and packaging.  The Row Milk is transported to different plants i.e. The AMUL has three different plants one is Manesar (Gujarat) that is the co. own plant and the maximum production and supply is done through this plant .There are two more plants one is Kwality plant in Baghpat,Faridabad (Hariyana) and the other is Gaga plant in Ghaziabad. These two plants are on lease and are hired by the co. also Kwality dairy does not produces Dahi.All the Dahi supply by the Manesar plant.  In these plants the Milk is categorized on the basis of their Fat content that is Full Cream OR Toned, and here the Milk is also pasteurized and packed for further sales to wholesaler’s distributors.  The Milk is transported through the insulated containers, which maintains the temperature of Milk up to certain level where milk does not gets spoiled.  The packets of Milk are transported in crates, which are also kept for accounting purposes, as these crates are to be returned to plant for further supply.  So the two type of sales takes place ie.primary sales and secondary sales through different Mktg channels.  The primary sales is that from Gujarat Co-operatives to the company plants, and the secondary sales is from co. plants to the co. product distributors known as ADA’s (Area Distribution Agents), Who further sell the Milk to the retailers.

The nature of transportation:  Area distribution agent (ADA)  ADA+Transporter one who will the milk from plant using his own transportation  Only transporter- who is not our distributor

What are Area Distribution Agents (ADA)? Area distribution agents are the company distributors who can be individual persons, or firms or people with dairy farms who take and supply Amul milk and milk products. These ADA have retailers under them who will further e selling it to consumers.

6

Amul “The taste of India” The ADA’s distribution agents are the co.FSR’S (that is field representative staff) who will be handling these ADA’s and will be taking their daily demand , which will be reported to the plants.

The processes that are to be studied are: Raising Invoice, Milk loading factor, Route Mapping, Registration of transportation vehicles, Demand taking process, Banking processes etc.

The process of milk demand and accounting: • • •

• • • •

FSR’s take the demand of milk from ADA’s FSR’s report the demand to the demand taking person in the Delhi MMO office. The demand taker mails the milk demand of different plants as decided by management depending on zone wise distribution, maximum supply is from Manesar plant . He also confirms by calling to the plant whether they have received the mail or not. Side by side the blank cheques are collected by ADA’s duly signed by them which are further filled by the office employees as per their due amount of milk supply. Paying slips are sent to bank. Demand is tallied by the supply made by plant. Invoice printing and invoice distribution , through courier or to parties directly.

Crate Accounting: •

•

•

•

Crate accounting is an important task to be accomplished as these crates are to be timely returned to the plants for further supply of milk .So keeping this thing in mind the process of crate accounting starts from the plant itself and ends up tallying with the plant only. The daily as well as the monthly records are available by the plant here at Delhi MMO office where it is processed (Mr.Goldy Robert).These records are further put in the excel sheets for different plants under the heads of parties name issue of milk/dahi, excess/shortage of crate. This statement is regularly updated as soon as the shortage or the excess crates are returned by the parties. After the adjustments only the parties are charged for the shortage of crates equivalent to amount of Rs.150/crate (Penalty charge). This complete statement goes to the DIC (Depots in Charge) who further informs FSR’s to inform them to their respectable distributors or else they will be fined.

The problem regarding crate: 1. Wrong counting of crate in the plant . 2. Some times plant gives the wrong dispatch of the crate number . 7

Amul “The taste of India” 3. Some times plant gives the right dispatch of crate but transporter does not returned the right number of crate . 4. Some times mistake is happened by the employee .Due to which crate is not tally and ADA’s have to face problem and there is a dispute between company and ADA’s.

Policy of the company regarding the crate accounting: • •

The parties are liable to return the crates within 7days of supply or the amount of Rs.150 per crate as a penalty will be deducted from their account without any further notice. The ultimatum is given by the company regarding the crate that you have to returned the crate which is shortage .Otherwise we will charge penalty and we will cut the amount from the transportation bill.

Freight processing and registration of vehicles: The freight bills are maintained on the monthly basis for each transporter cum ADA’s as told to me by the concerned employee (Mr. Somveer).After the processes of manufacturing and transportation in the respective month the plant issues the challans, are some that of crate accounting only the information from the challans is different .The process of freight accounting goes like. • There are three plant in Manesar, Goga and Kwality. These transportation charges for trucks and vehicles are measured keeping in mind the vehicle capacity and the distance on which t is supplying milk. • The transportation charges for the vehicles increases according to the distance from the plants to their destination supply to various distributors .i.e. The first leg transportation. • These first leg transportation cost goes like 0-100 km its .31 paisa .101-125 km its .32 paisa and so on. Earlier these rates were .30paise for first 100km which has increased from past 2years. • The next thing in freight bill processing is to keep a check over the capacity of the vehicles. The various capacities of the vehicles are: S.No 1. 2. 3. 4.

Vehicles type TATA 407 TATA 709 TATA 912 EIC 1109 • •

Capacity 300 crate 500 crate 800 crate 1000 crate

Usually these capacity vans are used, but these capacities can sometimes be increase also. These vans are insulated to avoid the milk spoilage, which maintains the temperature of milk. The important thing to be considered while freight bill processing is the capacity of crate. So in this case 1 crate =12 liter which earlier was 10

8

Amul “The taste of India” litres.These crates are to be returned next day back to the plant otherwise deduction will be charged.

•

Taking one example: Suppose an ADA is taking 12 crates so this means he is taking 12*12litres=144litres of milk for 125 km so he will be charges Rs.144litres * 32 paisa.

•

In case of milk the company is providing the leakage support of .02paisa to its transporters on the total bill.

•

While dispatching the milk the plant issues the challans, which gives the Details of no. of crates dispatched under which vehicle no. under which ADA dies that vehicle belongs etc.

•

At the end of the month these are used to make the freight bills. In case of incomplete challans or in the absence of registration form of the vehicles the freight bill is not processed and the payment is not made to the party.

•

All these transactions take place by clearing house function issuing the debit and the credit notes in the name of the party.

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Amul “The taste of India”

Objective of the project:-

 To suggest the cost Reduction strategies for the transportation of milk at Delhi MMO.  To check all the high transportation cost and checking out the loop holes in transportation cost.  To study the present transportation cost.  To reduce the transportation charges.  To study the crate supply and return on daily basis.  To check the shortage of crates.  To know that why crate are not returned.

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Amul “The taste of India”

REASERCH METHEDOLOGY 1. Route of transportation (Location of plant).Distance (in Km) from plant to ADA. 2. Use of vehicles & Capacity of vehicles.Exp-TATA 407,TATA 709,TATA 909 etc. 3. Cost difference in AM as compare to PM.

RESEARCH DESIGN & METHODOLOGY: Research is an art of scientific investigation. Research is an academic term to be used in a technical sense, according to the need. Research comprises defining and redefining problem, formulation hypothesis or suggested solutions, collecting, organizing and evaluating data. According to REDMAN and MORY “Research is the systematical effort to gain knowledge”. METHODOLOGY: Methodology is a way to systematically solve a research problem. It may be understood a science of studying how research is done scientifically? Market Research Market research can be defined as the systematic design, collection, analysis and reporting of data and findings relevant to specific marketing situation facing by the company. Philip Kotler. STEPS IN MARKETING RESEARCH An effective marketing research involves the following six steps: 1. Define the problem, the decision alternatives and the research objectives: Marketing management must be careful not to define the problem too broadly or too narrowly for the marketing research. Once the problem is identified then it is tried to find out the optimum solution.

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Amul “The taste of India”

2. Develop the research plan: The second stage of marketing research calls for developing the efficient plan for gathering the needed information. The marketing manager needs to know the cost of the research plan before approving it. Designing a research plan calls for decisions on the data sources, research approaches, research instrument, sampling plan and contact methods. 3. Collect the information: The data collection phase of marketing research is generally the most expensive and the most prone to error. In the case of surveys, four major problems arise. Some respondents will not be at home and must be contacted again or replaced. Other respondents will refuse to co-operate. Still others will give biased or dishonest answers. Finally, some interviewers will be biased or dishonest getting the right respondent is critical. 4. Analyze the information: The next-to-last step in the process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distributions. Average and majors of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional finding. 5. Present the findings: As the last step the researcher presents the findings. The researcher should present findings that are relevant to the major marketing decision facing management. 6. Make the decision: A growing number of organizations are using a marketing decision support system to help their marketing managers make better decisions. MIT’S John little defines a marketing decision support system (MDSS) as a coordinated collection of data, system, tools and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turn it into a basis for marketing action.

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Amul “The taste of India”

\DETAILS OF THE DATA COLLECTION Data is generally classified into two groups: Internal data It comes from the internal records to operation i.e. survey, collected database or core data (ORG) External data This can be collected through sales promotional activity. These data’s can be collected either from primary or secondary source The data is collected from two basic source and they are: Primary data Primary data is original data collected by the researcher’s first hand. It can be collected through observational studies, market surveys or experiments. It is a task that demand technical expertise. If a data has been collected in a systematic manner its suitability will be positive. SOURCES OF PRIMARY DATA Basically the research instrument used for collecting primary data from respondents is a Questionnaire, Observation, and Survey. Secondary data It is one, which has been already collected by a source other than the present investigator. It is not organize. The investigator makes use of data collected by other agency. Usually the last of gathering secondary data is much lower than the cost of organizing primary data SOURCES OF SECONDARY DATA Newspapers, magazines, technical journals, trade publications, directories, government publication, committee reports, reference books, balance sheet of companies and syndicated and published research report by various marketing research agencies are the sources of secondary data. Sometime, it can be purchased from the outside. METHODS OF DATA PRESENTATION After collecting the data from the various sources it is of utmost important to classify the data clinically to facilitate the analysis and interpretation of data collected. So presentation of data, in meaningful way is not an art and goes a long way to help the researcher to carry out these empirical findings.

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Amul “The taste of India”

The various methods, which I have used, are: a. Tabulation b. Bar Chart c. Pie Charts Research Methodology used in this Project Data sources Primary data: I have collected primary data through structured questionnaire, internet & through other companies websites. Secondary Data:I have collected secondary data from documents available in the company. DATA INTERPRETATION:Vehicle type and vehicle capacity: S.No 1. 2. 3. 4.

Vehicles type TATA 407 TATA 709 TATA 912 EIC 1109

Capacity 300 crate 500 crate 800 crate 1000 crate

(Table No.1)

The highest cost is paying by these ADA’s (Top ten). S.No

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Name of ADA’s / TPT’s Ganga Enterprises Jay Ambey Agency Raj Kumar Mahaverji Ashish Awasthi Milk Supplier Laxami Milk Product Fresh & Fresh Jai Shiv Dairy Rana Transport Jay Ambe Enterprises

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Cost (Rs) 4,45,432.80 3,31,416.84 2,41,622.88 2,34,846.70 1,62,123.14 1,31,877.12 1,29,495.12 1,21,148.16 1,17,246.72 1,12,596.48

Amul “The taste of India” (Table No.2)

Calculation of transportation cost on the basis of this cost. KM 0-100 101-125 126-150 151-200 201-225 226-250

TATA407 1050 1135 1220 1305 1390 1475

TATA709 PER LTR 1350 0.31 1460 0.32 1570 0.33 1680 0.34 1790 0.35 1900 0.36 (Table No.3) This is the table of transportation cost. By this cost the freight bill is prepared .This freight bill is calculated on Km basis .And in TATA 407 the fixed amount per trip for up to 100km is Rs.1050 and Rs.85 is charged for every 25 km. For TATA709 the fixed amount per trip is Rs.1350 for up to 100km and Rs.110 is charged for every 25km.

Total transportation cost for four month. Month Cost per month(Rs)

For the year 2008 January February 52,07,730.22 51,38,332.96

March 56,59,833.84

April 58,05,885.16

(Table No.4) Total Transportation Cost 6000000

Value in Rs.

5800000 5600000 5400000 5200000 5000000 4800000 January

February

March

April

Month

(Figure No.1) In four month the highest cost which is paid by the Amul is in April and the lowest cost is in February. The cost is increasing since three month .Because of the no of ADA is increasing every month. In the month of February the demand of Milk was less .Due to which the transportation cost is less. 15

Amul “The taste of India”

No. of Milk crate dispatch / demand for four month. Month No. of crate

January 1,60,27,560

For the year 2008 February March 1,58,18,388 1,73,63,796 (Table No.5)

April 1,80,30,300

Dispatch / Demand of Crate

18500000 18000000 17500000 17000000 No. of Crates 16500000 16000000 15500000 15000000 14500000

Series1

January February

March

April

Months

(Figure No.2) The demand of crate is increasing since three month. The highest demand is in April month and the lowest demand is in February month. One crate is equal to twelve liter milk. There can be something difference in the demand and dispatch.

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Amul “The taste of India”

Operating cost of transporters for different vehicle (For 100km). FOR TATA 407: (CAPACITY-400 Crate) COST HEAD COST PER TRIP (Amount in Rs.) DISEL 500 DRIVER 270 LOADER 150 INSURANCE 42 TYRE 110 RTO TAX FOR FITNESS POLLUTION & PERMIT 60 MCD,HARYANA,UP 200 MOBILE EXP. 20 POLICE EXP. 135 MAINTENANCE 100 TOTAL COST 1587 (Table No.6)

Operating cost of transporter (100km)

DISEL DRIVER LOADER

6%

INSURANCE

9% 1%

31%

TYRE RTO TAX FOR FITNESS POLLUTION & PERMIT

13% 4% 0% 7%

MCD,HARYANA,UP 3%

9%

17%

MOBILE EXP. POLICE EXP.

(Figure No.3)

MAINTENANCE

The highest cost which is paid by the transporter are Diesel, Driver, & MCD, Haryana, UP .And the lowest cost is Mobile Exp, RTO Tax for fitness pollution & permit, and Insurance. There will be only one loader.

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Amul “The taste of India”

FOR TATA 709: (CAPACITY-600Crate) COST HEAD DISEL DRIVER LOADER INSURANCE TYRE RTO TAX FOR FITNESS FOLLUTION & PERMIT MCD,HARYANA,UP MOBILE EXP. POLICE EXP. MAINTENANCE TOTAL COST (Table No.7)

COST PER TRIP (Amount in Rs.) 700 200 300 55 180 70 240 20 200 150 2115

Operating cost of Transporter( 100 KMs.)

DISEL DRIVER LOADER 7%

9%

INSURANCE 34%

1% 11%

TYRE RTO TAX FOR FITNESS POLLUTION & PERMIT

3% 0% 0%

9%

3%

9% 14%

MCD,HARYANA,UP MOBILE EXP. POLICE EXP. MAINTENANCE

(Figure No.4) The highest cost is Diesel cost and the lowest cost is Mobile Exp for 100km.There is a two loader. Due to which the Exp of loader is increasing.

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Amul “The taste of India”

FOR TATA 1109: (CAPACITY-1000Crate) COST HEAD DISEL DRIVER LOADER INSURANCE TYRE RTO TAX FOR FITNESS POLLUTION & PERMIT MCD,HARYANA,UP MOBILE EXP. POLICE EXP. MAINTENANCE TOTAL COST (Table No.8)

COST PER TRIP (Amount in Rs.) 900 250 600 100 275 100 300 20 250 200 2995

Operating cost of Transporters (100KMs.)

7% DISEL 8%

DRIVER 31%

1%

LOADER INSURANCE TYRE

10%

RTO TAX FOR FITNESS POLLUTION & PERMIT 3% 0% 0%

MCD,HARYANA,UP 9%

8%

MOBILE EXP. POLICE EXP.

3%

MAINTENANCE 20%

(Figure No.5) This is very heavy vehicle with less mileage but capacity is more than these two vehicle (Tata407, Tata709).Thatswhy the cost of Diesel & Loader is high and the lowest cost is Mobile Exp.

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Amul “The taste of India”

FINDINGS:  The rule & regulation of Amul as compare to mother dairy is very strict. Regarding the crate and check.  Many ADA’s are such who gives the fright bill / challan sheet after five days due to which the problem is faced by the company regarding the tally of demand dispatch of crate and prepared of freight bill.  The highest freight bill is given to the TATA 407 vehicle and the capacity is three hundred crate.  There are three plant (Manesar,Goga,&Kwality) Manesar plant is the highest producer of Milk and Dahi .Which is in Gudgeon.  Now sales is in increasing order and due to which the freight of transport is also increasing .Because the demand of Milk is increasing and also the (8-10) ADA’s are increasing per month.  The main part of transportation cost is Diesel cost, Driver cost, Loader cost and the tire exp.  Mobile Exp is same in all the vehicle weather vehicle is Tata407,Tata709, or EIC1109.  The freight rate of transport was .29 paisa per liter in November 2003 Due to increase in diesel prices the rate of freight is increasing year by year and in 2005 this was .31 paisa per liter for all the vehicle. In June 2008 the diesel prices increased by approx 16% due to which price revision has done by the Amul .Now the proposal of freight for the vehicle Tata 407 & Tata 709 are .32 paisa per liter and .35 per liter for EIC 1109.We are waiting for approved this proposal.  Regarding the crate there is problem of counting of crate, wrong dispatch of crate from the plant, Some time Transporter give the wrong challan sheet.  There is a very good ADA who is from Narela ( Narendra Singh ) . He has made goodwill regarding the crate received and return from the plant .There is no shortage of crate in any month .He has his own vehicle his demand is approx 9500 crate per month.

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Amul “The taste of India”

RECOMMENDATION:  Since the operating cost for Tata 407 is higher than other vehicle used by Amul /ADA;s .It has been seen that the transportation cost of EIC 1109 is lower. Thatswhy it can be recommended to use EIC 1109 in comparison of Tata407.  Route planning is necessary to reduce the transportation cost. Thus it can be recommended that the supply should be taken from the nearby the plant.  Capacity planning –The capacity of which vehicle is more or less . The demand of which ADA is more or less. If the demand of ADA is 1000 crate. And the vehicle Tata 407 and Tata 709 is going then it is better to supply of milk by EIC 1109 vehicle. Which can fulfill the demand of ADA’s?  In operating cost there should be control on police exp .due to which per trip cost can be reduce.  There should be appointment of driver, who should be physically strong .Who can do the work of loader in this case If driver salary is Rs.8000 than there should be given Rs.2000-2500 as work for loader. Than the cost of loader can be save.  More economic vehicle should be used for the transportation to minimize the fuel cost.  There should be good relationship between ADA’s and diver of transport due to which there will be no any shortage of crate. Driver must be honest and educated.  There should be a responsible person for dispatch of crate and analytical minded person for the counting and tally the dispatch and returned of crate.

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Amul “The taste of India”

CONCLUSION: In conclusion I can say that the transportation cost is increasing due to the increase in the price of diesel. In this project I have collect most of the data from the company office. I have taken the cost of four month (January to April).In which I show that the operating cost of Tata407 is more than the other vehicle. There are approx 245 ADA’s in Amul .Who is ADA as well as TPT. The maximum cost is paid by the Amul in the April month .The higher cost has been paid by the Amul to the Ganga Enterprises .And also the demand of Ganga Enterprises is more than the other ADA’s in four month(January - April).Company has a new proposal of transportation cost is .32paisa per liter for the vehicle Tata407&Tata709 for 100km and .35paisa per litre for EIC1109for 100km I have gone through the Research process in this project. The main problem of company is to manage the crate and how to reduce the transportation cost .After knowing all the sources of cost I have come to know that the extra cost is paying as a police exp. AS far as concern about the crate. Crate is being shortage every month. Transporters, plant, driver all are responsible for the shortage of crate .It is the very vast work to manage the crate .If crate is not returned properly than ADA have to give penalty. I have done all the work very sincerely and cleanly and I come to know the proper transportation cost and I have suggest in recommendation how can be reduced the cost.

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Amul “The taste of India”

BIBLIOGRAPHY BOOKS: 1.COST ACCOUNTING By- M.L.AGRAWAL (6th) Himalaya Publishing House 2.FINANCIAL MANAGEMENT By- KHAN AND JAIN (5th) Himalaya Publishing House 3. MARKETING MANAGEMENT By- PHILIP KOTLAR Tata McGraw-Hill

WEBSITES: 1. www.Amul.com 2. www.google.com

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Amul “The taste of India”

APPENDIX:

QUESTIONNAIRE Dear Sir / Madam, I am conducting a Market survey on Transportation cost of Milk supply in Delhi MMO. (A Study of ADA’s transportation cost). It is a part of my project work being carried under Gujarat co-operative Milk Marketing federation ltd, Janakpuri, Delhi MMO. It would be kind of you if you could answer the following questionnaire and help me in completing my project work successfully. Neeraj Kumar Jha MBA (Finance)

Name of the distributor: Area covered: No of retailers: Contact No: Name of the FSR: Average sales: 1) Which transportation vehicle do you own for Milk supply and what is the maximum capacity the vehicle can hold’? 2) How much do you pay to your driver and loader ? 3) What is the average of the vehicle you use for milk transportation? 4) What are your diesel expenses monthly for the vehicle(s) you use? 5) How much does it charge you for the insurance of the vehicle? 6) What are the current roads taxes charges, RTO and permit for transportation charges for your vehicle? 7) How much do you spend on the maintenance of the vehicle? 8) How much toll tax are you paying for your vehicle? 9) Are you paying something to police? 10) What are your mobile expenses related to the supply? 11) What flows do you see in Amul? 24

Amul “The taste of India” 12) Any suggestion for the improvement in Amul services?

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