The document describes the supply chain of a dairy cooperative society in Jaipur, India. It discusses the procurement of raw materials from farmers, processing at the dairy plant, distribution through distributors to retailers, and sales to customers. It also compares the organized supply chain system used by the cooperative to the traditional unorganized local milkman system, noting differences in structure, costs, storage, demand forecasting, and information flow. Suggestions are provided for both systems to improve operations.

2.  Retail Store- Saras Dairy
 Traditional Outlet – Local Milkman

3. INTRODUCTION
 Towards fulfillment of the national objective
of making India self-sufficient in milk
production, a small step was taken in
March 1975 and Jaipur Zila Dugdh Utpadak
Sahakari Sangh Ltd., Jaipur (popularly
known as Jaipur Dairy)
 It was registered under Cooperative Act
1965 to work in then Jaipur District. Initially
this union did not have the processing
facilities. It started with a modest beginning
of procuring 250 liters of milk per day.

4. Raw Material Supplier
Farmers Dairy coopt.society
Manufacturers
Processing Plant
Distribution Channel
Distributer Retailer
Customer

5.  Procurement of raw material /supplier:
 Farmer's Organization,
 Input Services like Animal Health Coverage, animal
breeding programme,
 Supply of balanced cattle feed and improved high
yielding fodder seeds to the members,
 Cooperative institution building
 Processing plant:
 Processing facilities of the dairy plant presently include
multidimensional activities
 At the Dairy stringent hygienic standards are maintained

6.  Distributor
 Processed milk is then packed into different units in
hygienic plastic for the easiness of customer.
 It is then loaded into the transporting vehicles to
various outlets inside the jaipur and insulated vehicles
are used for delivering outside the jaipur
 Retailers:
 Jaipur Dairy sells its milk & milk products through a
network of over 4500 retail outlets spread over Jaipur
city and nearby 100 towns.
 Customers:
 Customers according to their need purchase the milk
from the nearest retail outlet

7.  Local vendors are those who serve the
milk requirements. The supply chain
includes direct serving to the customer.
The customer approaches to the
Milkman directly and either he serves at
home or customer goes to the place of
milkman for taking milk.


9.  Organized follows a set structure to supply products to customer
whereas unorganized supply or serve directly to customer.
 Cost in organized is high as to maintain and continue the smooth flow of
supply chain whereas cost involved in this is negligible low
 Proper storage options are there with organized system because they
supply in bulk so they have to preserve the large amount of milk for
timely supply.
 Demand forecasting is proper in organized as they got feedback from
customers regular, so less chances of wastage.
 Lead time in unorganized is less as the market is very small.
 Flow of information might be detractive as it flows through different
levels.

10.  Organized:-
 Highly technically oriented :
use of various expert designers in the designing of channel.
 Quality is maintained:
As there is quality check at each and every step .
 Availability is very easy and approachable:
Due to effective supply chain the availability of milk is
every part of cities.
 Less chances of wastage due to proper storage system:
As there is proper demand forecasting and storage
 Transportation cost is high:
As the system is too large, the transportation cost is very
high.
 Grasp the opportunity if increased suddenly:
.

11. Unorganized:
 Small supply chain, direct supply to customer:
As the supply area is very much limited, so directly supply to
the customer.
 No storage cost, but have to bear the cost of wastage in
case if customers refuse to take milk.
 Low transport cost:
As the area is very limited so very low or negligible.
 Direct contact with end user:
This will help a lot to forecast correct demand and
feedback about the product offered. This will enable the
local vendors to make arrangements for the extra demand
or less demand in before which prevents the closing stock
on the day.

12. ORGANIZED:
 Price Flexibility: if applied can be proved from beneficial
to organization.
 More of retail outlet would engage more of the customer.
 Home delivery should be provided to at least those areas
where demand is not that much that it would be feasible
to open a BOOTH there.
UNORGANIZED:
 More hygiene in quality emphasis is required for the
customer retention.
 Timely delivery and demand forecast are areas to work
upon effective supply chain.
 Better storage facility would reduce spoilage this reducing
inventory damage.