SID’S FARM

PROCUREMENT
MANAGEMENT TRAINEE

Sharan Teja Lingam

PGDM-ABM
sharantejalingam@[Link]
+91 8985108156
TABLE OF CONTENT (TOC)
 Overview
 Road map of SOP
 Standard operating procedure (SOP)
 Process of execution
 Process involved in optimization
 Goals And Objectives
 Developing and implementation of procurement metho
ds for optimizing quality testing
 Implementation of digital tools and ERPs to capture re
al time data
.
 Tracking KPI’s in measuring of various parameters.
 Strategies:- Dairy
farmer engagement activities and promotion
 Conclusion
OVERVIEW: PROCUREMENT OF MILK

 Identification of potential area for procuring of milk.

 Collection and analyzing of data in identifying potential farmer/vendor.
 Generating new leads by various sources.
 Creating operational activities for procuring of milk from various sources.
 Creating VLC’s and BMC’s for maintaining and collection of milk.
 Allocation of resources for maintaining of VCC’s or BMC’s.
 Continuous improving the existing sources in generation of new leads.
ROAD MAP OF SOP

Day 1-10 Day 21-30 Day 41-50 Day 61-70 Day 81-90
Data collection and Milk quality Milk Transport Milk procurement Execution of
analysis monitoring optimization planning planning
STANDARD OPERATING PROCEDURE (S0P)

• Collecting data on milk • Establishing a milk quality

procurement from all monitoring program as well
suppliers, including volume, as reviewing and
quality and outreaching of optimizing of payment
farmer/supplier terms

Day 1-25
Data collection
and analysis
and farmer
outreach
SOP

Day 51-75
Supplier
performance
• Maintaining regular monitoring and
communication with procurement • Monitoring the individuals
suppliers to keep them planning supplier performance and
informed about milk
their potential.
procurement plans, quality • Selection of supplier and
standards, and performance
engaging for procurement
metrics which in
planning.
establishing of collection
centre.
 PROCESS OF EXECUTION

Chilling Village 1
Establishing
Milk Collection
Centre 1 Village 2

Establishing Bulk Village 3

Processing
Milk Collection
Unit
Centre (BMC)

Village 4

Establishing
Milk Collection Village 5
Centre 2

Village 6
PROCESS INVOLVED IN OPTIMIZATION

Collaborating with other departments •Collaboration with other departments, such as production, and sales, can help promote best practices and support farmers.
• For example, closely working with the production teams can better forecast demand and optimize inventory levels.

•Investing in better testing equipment such as spectrophotometers and microbiological testing equipment.

Improving quality testing methods •Implementing a quality control plan that helps to ensure all products meet the required quality standards.
•Finally, it is important to track and analyze quality data, using insights to identify areas.

Optimizing processes using digital tools and •Digital tools and ERP’s can help optimize the procurement process in several ways.
•For example, digital tools can help automated procurement activities, such as details of farmer/supplier, volume of milk. Capturing of data, and calculating of accounts of individuals.

ERP’s

Increasing Efficiency •To increase efficiency, it is important to strem line the procurement process. This can be done by digitalizing the entire procurement process , from capturing of data to invoice processing.
•A digital procurement process can help eliminate manual errors, reduce paper works, and speed up the overall process.
GOALS AND OBJECTIVES
GOALS AND OBJECTIVES
GOALS AND OBJECTIVES

Days Farmer Count Volume Villages Covering

(no) Collection (Ltr) (no)
Below 100 250 500 3
100 to 200 500 1000 6
Above 200 1000+ 2000+ 12+
2000 Direct
1500
Farmer count
1000
Volume Collec-
tion
500
Villages covering Cooperative Collection Agent
0
Below 100 To Above
100 200 200

Contractor

Collection vehicle for 500 Collection vehicle for 1000 Collection vehicle for 2000
litre capacity litre capacity litre capacity
 DEVELOPING AND IMPLEMENTATION OF PROCUREMENT
METHODS FOR OPTIMIZING QUALITY TESTING
 Basic activities and tests to be performed at the  Basic tests to be performed
collection centres. at the chilling centres.

Collection of raw
Raw milk collection Organoleptic Tests/Sensory Test milk from collection
by farmers/suppliers centres

Performing
Lactometer Tests Performing
of of
individual individual
Return to quality Dumping off quality
farmer/supplier tests collected milk tests
Clot-on-boiling tests Rejected
Accepted Accepted

Collecting into Collecting of tested

specific 20 ltr cans Alcohol Test milk by volume

Storage in cool and Chilling of collected

Acidity Test milk and storage
hygienic ambience

Transporting to
Transport to BMC’s Gerber test processing plant for
or near by chilling production.
centres via auto.
 The above tests to be performed by collection centre
agents for procuring of quality milk that helps in
optimization
 IMPLEMENTATION OF DIGITAL TOOLS AND ERP’S
TO CAPTURE REAL TIME DATA
qua
Farmers Member Address Date ntity
In charge Time
Society name name ship ID
Num Name

Address

Me Co
Societies mb
ers Farmer
ntri
but Milk
hip ion

Member Fat
ship ID SNF %

Dist
Deli ribu
very tion

Farmers Name

Membership ID

Paym
Milk ent Bills Payment period
Received Basis

Amount
Vehicl FAT %
e No
Quantity of Milk

Society SNF
No
Quantity
of Milk
KEY PERFORMANCE INDICATORS (KPI’S)
 Key performance indicators for procurement of milk includes:-
milk volume, milk quality, supplier performance, cost per litre,
inventory turnover, supplier diversity, compliance, and customer
satisfaction.

Milk Milk
Volume Quality
Supplier

Key
Supplier Performance Performance
Diversity Indicators
(KPIs)

Customer Inventory
Satisfaction Cost Per Litre
Turnover
PROCESS OF TRACKING OF KPI’S
• The first step is to identify the KPIs that are most relevant to your milk
procurement process.
Identify relevant KPIs • These may include metrics such as milk volume, milk quality, supplier
performance, transportation efficiency, and payment terms.

• Once you have identified the KPIs, you need to establish benchmarks or
targets for each KPI.
Establish benchmarks • These benchmarks should be based on historical data, industry
standards, and organizational goals.

• The next step is to collect data on each KPI. This may involve collecting
Collect data
data from various sources such as supplier invoices, transportation logs,
And analyze milk quality test reports, and performance reports.

• The final step is to use the data and insights gained from tracking KPIs
to drive continuous improvement and regular reporting in the milk
procurement process..
• This may involve creating regular reports and continuous improvement
of dashboards that highlight performance against targets.
STRATEGIES :- FARMER ENGAGEMENT AND
PROMOTION.

•Social Media:-
• For Example creating a whatsapp group of dairy farmers and providing solutions for
maintenance of buffalos, calves, and Cows by providing experts.
•Direct Meeting:-
• Conducting direct meetings with the dairy farmers/suppliers especially during village
vocational festivals and village meetings.
•Providing referral activities via existing farmers by providing schemes and freebies:-
• For example providing additional prices to the dairy farmers on referral of new farmer and
giving additional 10 to 15 % more on quality or volume of milk.
•Providing additional training in the name of organization on maintenance of animal husbandry.
• Providing better prices over the competitors and providing better operational activities.

Direct

Training Farmer

sessions
engagement and
promotional
Indirect

Referral
CONCLUSION

 By following the above plan, it is expected to start the successful procurement

of milk from various locations.
 The SOP created for 100 days, here it is concluded that involving of various
goals & objectives which helps in creating a optimized operational and
procurement activities.
 The SOP’s include from the first step of identification to implementation of
announced plans.
 This in results creates optimized opportunities to the dairy farmers and the
organization in cost cutting during operation and procurement activities.
 Establishing of VLC’s and BMC’s in the new location with chilling centres and
pasteurization, so that if there are any risks involved via transportation can be
minimized.
 Regular vehicles are to be maintained from VLC’s and other collection centres,
so that the delay of milk reaching to processing centres is avoided.

Thank you