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Summer internship projectOn

Supply Chain & Marketing System OfIFFCO

Executed at

IFFCO Aonla Unit Bareilly (U.P.)Under the guidance of Submitted By

Mr. Ravi Jaiswal pawan Kr. Kushawaha

(Dy. Manager TPT) M.B.A. (E-Business)

Mr. Avanish Saxena Sem. III

(Asst. Manager TPT) Roll No. 901113033

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OBJECTIVEOF STUDY

The study was conducted in IFFCO Aonla, Bareilly in keeping the following

objectives in view:

Provide the information of distribution channel of products at different parts

of country.

To know the Supply Chain System of IFFCO.

To know Marketing strategies of IFFCO and various promotional activities.

To know various scheme for farmers provided by IFFCO through FSC

farmer service centre.

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WAREHOUSING

The warehouses for storage of fertilizer are provided by Central Warehousing

Corporation (CWC), State Warehousing Corporation (SWC), cooperatives and

private agencies. The total storage capacity available with CWC, SWC and the

cooperatives during the year1996-97 was about 32 million ton

FUTURE STRATGIES OF WAREHOUSING

IFFCOS sales volume is going up and it is expected to be 120 lakh tons in

2010-11. Therefore, warehousing planning assumes great importance. Micro-

level exercises are, therefore, being carried out, State wise, district wise, and

rake point-wise.

Feeder Warehouses

Buffer Warehousing

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TYPESOF TRANSPORT USED BY IFFCO

The main objective of transportation is to make right type of fertilizer available

at right place at right time and in right quantities for this IFFCO use three types

of transport for dispatching their material from production unit to final

destination. The three types of transport used by IFFCO for dispatching their

material are as follows.

1. By Road

2. By Rail

3. Inland and Coastal Water Transport

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DISTRIBUTION CHANNELS

As a matter of philosophy, principle and policy, IFFCO has provided in its

Bye-laws channelizing its entire production through the cooperative system.

However, in exceptional circumstances, other institutional agencies could

also be involved. IFFCO is, however, not proposing to route its production

through private trade.

Primary Agricultural Credit Societies (PACS).

National Cooperative Development Corporation (NCDC)

IFFCO Farmers Service Centers (FSCs)

State level Distribution Channel

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PROMOTIONAND EXTENSION ACTIVITES

In order to popularize its products and to create a ready market for them beforeits plants went in to production, IFFCO took upon itself the responsibility of

undertaking systematic promotional and educational programmes, through a

well conceived approach. Some of the programmes are as following.

Seeding Programme

Farmers Educational Programmes

Two-plot Demonstrations

Block Demonstrations

Critical Input Package Demonstration

Field Programmes

Soil Testing

Seed Multiplication

Village Adoption

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PROMOTIONALAND PUBLICITYACTIVITES

Fertilizer promotion is one of the important components in fertilizer

marketing. The objective is to create awareness about fertilizers and

provide technical information on improved agricultural practices and

fertilizer use so as to increase productivity and fertilizer use efficiency. Mass

media approach is followed in fertilizer promotion.

AIR, Doordarshan and Press

Fairs and ExhibitionsTechnical Literature

Hoardings and Roadside Sign Boards

Crop Films

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QualityApproach

Continue to provide quality fertilizers, marketing support to cooperatives

and extension services to farmers and bring about quality improvements.

Educate farmers in maintaining soil health and to enhance crop

productivity through balanced and efficient fertilizer use.

Bring about continuous improvements in all marketing operations.

Maintain and develop Organization Culture based on team work,

harmonious relationships and collective decision-making.

Upgrade the human resources with the latest technical and managerial

skills through regular training.

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Pricing Policy

Urea price is statutorily controlled by the Govt. of India. For the statutorily

controlled commodity, farm gate price exclusive of local taxes and

distribution margin etc., are fixed uniformly for all the States and Union

Territories by the Govt. of India.In case of phosphatic and potashic fertilizers, manufacturers/suppliers are

free to fix farm gate prices and terms of sale.

On account of the reimbursement of ad-hoc subsidy on these fertilizers,

Govt. of India continues to regulate their farm gate prices and thedistribution margins. From 1st April, 1996, GOI has been fixing uniform prices

(MRP) all over the country.

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Corporate Social Responsibility

(CSR)COOPERATIVERURAL DEVELOPMENT TRUST

IFFCO promoted Cooperative Rural Development Trust (CORDET) in the year

1979 in order to provide education and training to farmers on various aspects ofcrop production, horticulture, animal husbandry and farm machinery etc. The

Trust is operating at two places, Phulpur (Uttar Pradesh) and Kalol (Gujarat).

RESEARCHAND DEVELOPMENT

The Agricultural Universities and research institution has played a

commendable role in developing location specific crop production technology

and its dissemination at the farmers level.

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Suggestions & Recommendations

With its roots in cooperative, IFFCOs production is supply driven and not

demand driven. Therefore, the warehouses have to be prepared for unexpected

supply of fertilizers in terms of micro-planning for the storage and the

distribution.IFFCO wanted a communication solution which is cost effective and

completely automated. Since the warehouses do not have any IT system in place,

it also needed a solution which uses mobile channel for delivering the

information.

IFFCO is already covering almost the entire country with respect to sales and

no new State is likely to be added to its marketing areas. However, some

additional Area Offices need to be opened in a few States.

Contd.

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Sometime IFFCO use open wagons due shortage of wagons, so its

essential to purchase more covered wagons.

It is the time for IFFCO to focus more on its promotional programmes,

because promotional activities of IFFCO are declines.Make their presence at those places where demand of fertiliser is high

but supply is not effective.

The market scenario is changing fast. While there is a shortage of

phosphatic and potashic fertilisers in the market mainly due to uncertaintyin state level demand.

Contd.

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Thank

You