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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
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(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
1. Acknowledgement 3

2. Introduction 4

3. Company profile 5–9

4. Objective of project 10

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

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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

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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 co-
operative organization's success in the long term. It is one of the best examples of co-
operative 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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company profile

CEO B M Byas
Type Cooperative
Founded 1946
Headquarters Anand, India
Chairman, Gujarat Co-operative Milk Marketing Federation
Key people
Ltd. (GCMMF)
Industry Dairy
Revenue Template:Revenue$1 billion USD (in 2006-07)
Employees 2.41 million milk producers
Website www.amul.com
Total turnover 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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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.

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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 .

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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 Vehicles type Capacity


1. TATA 407 300 crate
2. TATA 709 500 crate
3. TATA 912 800 crate
4. EIC 1109 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

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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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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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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 re-
defining 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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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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\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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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 Vehicles type Capacity


1. TATA 407 300 crate
2. TATA 709 500 crate
3. TATA 912 800 crate
4. EIC 1109 1000 crate

(Table No.1)

The highest cost is paying by these ADA’s (Top ten).

S.No Name of ADA’s / TPT’s Cost (Rs)


1. Ganga Enterprises 4,45,432.80
2. Jay Ambey Agency 3,31,416.84
3. Raj Kumar 2,41,622.88
4. Mahaverji Ashish 2,34,846.70
5. Awasthi Milk Supplier 1,62,123.14
6. Laxami Milk Product 1,31,877.12
7. Fresh & Fresh 1,29,495.12
8. Jai Shiv Dairy 1,21,148.16
9. Rana Transport 1,17,246.72
10. Jay Ambe Enterprises 1,12,596.48

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(Table No.2)

Calculation of transportation cost on the basis of this cost.


KM TATA407 TATA709 PER LTR
0-100 1050 1350 0.31
101-125 1135 1460 0.32
126-150 1220 1570 0.33
151-200 1305 1680 0.34
201-225 1390 1790 0.35
226-250 1475 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.


For the year 2008
Month January February March April
Cost per 52,07,730.22 51,38,332.96 56,59,833.84 58,05,885.16
month(Rs)
(Table No.4)
Total Transportation Cost

6000000

5800000
Value in Rs.

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.

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

For the year 2008


Month January February March April
No. of crate 1,60,27,560 1,58,18,388 1,73,63,796 1,80,30,300
(Table No.5)

Dispatch / Demand of Crate

18500000
18000000
17500000
17000000
No. of Crates 16500000
16000000 Series1
15500000
15000000
14500000
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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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)
DISEL
Operating cost of transporter (100km)
DRIVER

LOADER
6%
9% INSURANCE

1% 31% TYRE

RTO TAX FOR FITNESS


13%
POLLUTION & PERMIT

4%
0%
7% MCD,HARYANA,UP
3% 17%
9% 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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FOR TATA 709: (CAPACITY-600Crate)


COST HEAD COST PER TRIP
(Amount in Rs.)
DISEL 700
DRIVER 200
LOADER 300
INSURANCE 55
TYRE 180
RTO TAX FOR FITNESS FOLLUTION & PERMIT 70
MCD,HARYANA,UP 240
MOBILE EXP. 20
POLICE EXP. 200
MAINTENANCE 150
TOTAL COST 2115
(Table No.7)
Operating cost of Transporter( 100 KMs.)

DISEL

DRIVER

LOADER

7% INSURANCE
9%
1% 34%
TYRE
11%
RTO TAX FOR FITNESS POLLUTION &
PERMIT

3%
0% 9% MCD,HARYANA,UP
9%
0% 3%
14%
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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FOR TATA 1109: (CAPACITY-1000Crate)


COST HEAD COST PER TRIP
(Amount in Rs.)
DISEL 900
DRIVER 250
LOADER 600
INSURANCE 100
TYRE 275
RTO TAX FOR FITNESS POLLUTION & PERMIT 100
MCD,HARYANA,UP 300
MOBILE EXP. 20
POLICE EXP. 250
MAINTENANCE 200
TOTAL COST 2995
(Table No.8)
Operating cost of Transporters (100KMs.)

7%
DISEL
8%
DRIVER

1% 31% LOADER

INSURANCE

10% TYRE

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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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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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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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?

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

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