Eassay on Supply Chain Managetment

Dairy Industry
In India the dairy sector plays an important role in country’s socio-economic development and constitutes as a major segment of the rural economy. Dairy industry provides a livelihood to millions of homes in villages ensuring supply of quality milk and milk products to people in both urban and rural areas. With a view to keeping pace with the country’s increasing demand for milk and milk products the industry has been growing rapidly. India is world’s largest milk producer accounting for around 17% of global milk production.
Supply chain management with perspective to dairy industry of India:
Milk supply chains are more concerned with controlling of milk quality and supply fluctuations which are unique to this sector. Perishable goods like milk require a time efficient supply chain. This perishable factor can affect the milk supply chain. Supply chain management has seen as a source of gaining competitive advantage in the business world. For the success of a dairy industry/firm efficient supply chain management is a pre-requisite. Thus, the supply chain performance of the processing units is a deciding factor for the success of the unit.

The Indian supply chain for milk products is affected by abnormal wastage and poor handling. The wastage occurs because of multiple points of handling. Shortage of cold storage facilities and refrigerated transport equipment lead to inefficiencies in handling milk products. There is a compelling requirement for appropriate infrastructure for storage and transportation such as temperature controlled warehouses and vans. By practicing improved supply chain management practices, there will be significant reduction in the wastages of milk and milk products which in turn will benefit both the farmers as well as the consumers by means of increased returns and decrease in price respectively. Given the fragmented nature of the milk supply chain, few companies have access to capital and the ability to...