SIGNIFICANCE OF INVENTORY MANAGEMENT IN VITA MILK PLANT, AMBALA CITY, HARYANA

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SIGNIFICANCE OF INVENTORY MANAGEMENT IN VITA MILK PLANT, AMBALA CITY HARYANA …

SIGNIFICANCE OF INVENTORY MANAGEMENT IN VITA MILK PLANT, AMBALA CITY HARYANA

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  • 1. SIGNIFICANCE OF INVENTORY MANAGEMENT IN VITA PLANT, AMBALA CITY
  • 2. INTRODUCTION Type - Cooperative Industry - Dairy Founded - 1970, Jind (Haryana) Operations Started 1973, Ambala (Haryana) Revenue - INR 120 Crore (Ambala Plant) Daily sale of around Rs. 35-40 lakhs Unions - 6 Registered unions
  • 3. Key facts • The Company has three tier system comprising Milk Producer Societies at the village level, Milk Producers Co-operative Union at the district level and the State Milk Federation as an apex body at the State level. • Tag Line is “VITA the Hallmark of Quality”. • Accreditation with ISO 9001:2008 and ISO 22000:2005 Certified Unit. • The Entire Labor is on daily wages (as per Labor Law) and they work round the clock 24 hours a day. • The new administrative staff is recruited on Contractual Basis. • They don’t give any Credit facilities to their suppliers & distributors. • They purchase milk only from the farmers & total milk capacity of the plant is 5,50,000 liter's per day. • It works as an Independent body with no Government Intervention in their day-to-day operations.
  • 4. objective • A readymade market to milk producers at their doorstep. • To give remunerative prices to the milk producers for milk. • To make good quality milk & milk products available to the consumers at reasonable price. • To provide ghee, cattle feed, mineral mixture & seeds etc. to village level milk cooperative societies for further sale to producer members. • To provide training (by outsourcing) to staff & milk producers for business operation. • To procure milk by forming village level milk cooperative societies or through dairy farms.
  • 5. products • Milk (Full Cream Milk, Standard Milk, Toned Milk, Double Toned Milk and Flavoured Milk) • Ghee • Butter • Sweets (Kaju Pinni & Kalakand) • Kheer • Curd • Cheese • Lassi • Ice Cream • Fodder
  • 6. Organization structure LEVEL MEMBERS State Federation District level Chairpersons, Registrar of Co-operatives, Technical Expert, CEO District Chairpersons of Village Dairy Co-operative Societies, BOD, MD Village Milk Producers, Managing Committee DECISION-MAKING0 • Price paid to district unions (fixed across unions) • Product mix and quantity • Price paid to village co-operative societies • Membership • Price paid to milk suppliers
  • 7. Value chain process Vita receives its raw material, i.e. Milk in the following two ways: Milk Collection (3395 in nos.) Farmer s Production of Milk Village Cooper ative Societie s Distribution Vita Milk Plant Milk Processing Distrib utors Consuming Retaile rs Consu mers Selling The Products are sold by 250 no. of distributors, Institutions, Defence Units, Districts Jails & 354 no. of milk booth network.
  • 8. Value chain process Farmers Vita Milk Plant Distributors Retailers Consumers • Vita does not provide any facility of transportation for the supply of their products directly to the distributors. • Distributors have to arrange for the transportation, i.e. the vehicles on their own. • The payment for the products is done in advance by the distributors, i.e. no credit facility is available. • The profit margin for the distributors is 25 paisa per litre and for the retailers is Re.1 per litre.
  • 9. Plants of vita milk S. No. Milk Plants Year of establishment 1. Jind 1970-71 2. Ambala 1973-74 3. Rohtak 1976-77 4. Ballabgarh 1979-80 5. Sirsa 1996-97 Products Liquid Milk, Ghee, Powder, Paneer, Dahi, Lassi, Kaju Pinni Jaljeera, Mango Drink. Liquid Milk, Ghee ,Paneer , Dahi, Lassi, Sterilized Flavored Milk, Kheer, Milk Cake, Ice Cream. Liquid Milk, Ghee, Paneer, Dahl, Lassi ,Table Butter. Liquid Milk, Ghee, Paneer, Dahi, Lassi. Liquid Milk, Ghee, Powder,Paneer,Dahi, Lassi, Kaju Pinni. Registered capacity (TLPD) 150.0 120.0 250.0 250.0 110.0
  • 10. Inventory management The overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale.
  • 11. Inventory management • Inventory Management strategy used by Vita plant is the just-intime method, where company plans to receive items as they are needed rather than maintaining high inventory levels. • The milk that comes in is processed and then sent out for sale. • Only during the peak periods, they store skimmed milk powder, so that it can be used in the lag period. • This storage is done at room temperature, in their own warehouses. • White butter is stored in specially insulated cold storage warehouses at -20oC which are taken on rent by floating tenders in the market. Butter is stored for only 3-4 months and the overall cost for holding the butter is around 8-10 lakhs.
  • 12. Learning's • • • • Acquired practical insights of the real-time business environment. Learned the input and output for different processes. Experienced the importance of working safely. Understood the concept of milk processing & estimate overall efficiency of the milk plant. • Learned about the Logistics & Inventory management, time management and working methods through interaction with the Industry Experts. • How to maintain healthy relationships with the suppliers and distributors, in order to create a value of the brand in the competitive world.
  • 13. Images 2
  • 14. 2 “Nothing ever becomes real till it is experienced”