Business Plan For Fertilizers Distributors 4h2i1d

qwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwer M/s. BioFields Impex Pvt Ltd., A detailed end term project report of the role of tyuiopasdfghjklzxcvbnmqwertyuiopas a Stockiest and use of IT for Fertilizer, Pesticide, and Seeds Industry. dfghjklzxcvbnmqwertyuiopasdfghjklzx cvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmrty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc PGDM – IB,09-11 Term - II

Submitted by: Group no 5 Ankita (05), Deepak (17), Manas (29), Ranjan (41), Sourav (53)

M/s. BioFields Impex Pvt Ltd.,

Acknowledgement

First we would extend our honest thank to our faculty Prof. Rupesh Kumar Sinha for giving us the opportunity to conduct this project. We also thank one and all who have helped in making key decisions and discussion which allowed us to complete this project in time successfully. Last but not least our families for extending their . We also thanks for the help from Two another Groups, Mr. Vijay (Group no -1) & Mr. Anoop (Group no- 9).

: of Group 5 Ankita Deepak Manas Ranjan Sourav


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Table of Contents

Executive Summary ....................................................................................................................................... 4 Concept ..................................................................................................................................................... 4 Drivers ....................................................................................................................................................... 4 Business Proposition ..................................................................................................................................... 5 Business Structure ......................................................................................................................................... 6 Customer Profile............................................................................................................................................ 7 Organizational Structure ............................................................................................................................... 8 Infrastructure requirements for Execution.................................................................................................. 12 Business Process Modeling & Execution ..................................................................................................... 12 Object Modeling...................................................................................................................................... 13 IT Infrastructure Model ........................................................................................................................... 14 Financials .................................................................................................................................................... 17 Investment .............................................................................................................................................. 17 Assumptions ............................................................................................................................................ 18 Profit Margin ........................................................................................................................................... 18 Conclusion ................................................................................................................................................... 19 Bibliography ................................................................................................................................................ 20


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Executive Summary Concept In the current climate, controlling IT costs is more important than ever - and yet, at the same time, businesses need a rich, reliable, secure IT infrastructure to stay competitive, this has inspired us to come up with an efficient business plan for stockiest, that would make them selfsufficient and keep them engaged in success story of any manufacturing and selling company by switching over to Intelligent-Business (IB) a new way of doing Business. “The first thing to be recognized with respect to Intelligent-Business is that it is not necessary only for generating more sales but it can be adopted to improve the efficiency and effectiveness of an organization unlike the previous versions of doing Business.” Right from the Start of Manufacturing to inventory, distribution and transportation to the consumption at end s the requirement of Information technology plays a pivotal role so the concept of this business plan as stated explains how to implement a new concept called Intelligent-Business in managing business with the co-contracting type of relationship in supply chain which would be an essential setup for starting the business.

Drivers In our country over 70% of the total population live in villages. There are states like U.P, M.P, Bihar, Rajasthan and Orissa where rural population varies from 80 to 90 per cent. Agriculture and agriculture related activities contribute to about 75% of the income in rural areas. The general impression is that the rural markets have potential only for agricultural inputs like seeds, fertilizers and pesticides, cattle feed and agricultural machinery. More than 50% of the national income is generated in rural India and there are opportunities to market modern goods and services in rural areas and also market agricultural products in urban areas. Infact it has been estimated that the rural markets are growing at five times the rate of urban markets. About 70% of bicycles, mechanical watches and radios and about 60% of batteries, sewing machine and table fans are sold in rural India. At the same time the sales of color television, washing machines, refrigerators, shampoos, face cream, mosquito repellent and tooth paste are very low and there is tremendous potential for such products in rural markets. While rural markets offer big attractions to the marketers, it is not easy to enter the market and take a sizeable share of the market within a short period. This is due to low literacy, low income, seasonal demand and problems with regards to transportation, communication M/s. BioFields Impex Pvt Ltd.,

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and distribution channel. Further there are different groups based on religion, caste, education, income and age. There is a need to understand the rural markets in of buyer behavior, attitudes, beliefs and aspirations of people.

Business Proposition In order to find the effective solutions from Information technology for stockiest in fertilizer, seed and pesticide industry, The Basic expectations from IT would be with respect to the following issues, based on the co-contracting type of relationship in supply chain. 





  



Effective Executive Information Systems: A well designed executive information systems that will ensure that the activities at all the levels of marketing function are directed at achieving the goals of the organization. Necessary monitoring and decision making tools are required to be provided. Breaking Distance Barriers: The operations related to fertilizer marketing involve large territories. I.T. should provide means of acquiring latest information from all parts so that the managers have access to latest information. Meaningful Information: The problem of too much data or too little data needs to be addressed. Mere provision of access to a large volume of data can lead to confusion. The decision makers should not be inundated with too much of raw data. The data should be provided as meaningful information which contributes to proper judgment in decision-making. Raising Alerts: The systems should provide alerts to exceptions and achievements. Projection and speculation reporting may also be provided. Interactivity: Interactive communication with facts and figures between various layers of management needs to be provided. Online : Online to sort out any problems along with dynamic identification of an expert to assist in solving the problem, online access to policy guide lines, etc. may be provided. Transforming the present marketing activity to a new paradigm of conducting business electronically by switching over to Intelligent-Business.


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Business Structure The business structure is based on the idea of Intelligent-Business - IB and a new way to find each other’s areas of expertise, projects, and relationships when we are a stockiest, before we can describe and find the exact way of managing a business for stockiest first we need to understand the role and stockiest So we have classified the role of stockiest, in two classifications i.e., Efficiency and Functions. The Purpose of Stockiest is to obtain Efficiency of operations through integration of 1. Material Acquisition, 2. Material Movement, and 3. Material Storage. Some Basic Functions of a stockiest are: 1. Shipping 2. Purchasing 3. Warehousing 4. Order Processing 5. Inventory Control After knowing the proportion and basic role of a stockiest now we discuss the structure which would be based on Co-contracting. Co-contracting is a term used to describe alliances between organizations that have - Long term relationships but do not merge together, they rather transfer some Equity (ownership), technology, Information, and People for maximizing profit with service of efficiency. First we describe the Structure based on the relationship with the manufacturing unit, Marketing Department, Stockiest, retailer, sales department and the End s. So here is a brief diagram of a hierarchical structure. Once the business structure is done and having the responsibilities describe in separate departments and the above roles give a detailed description about the role of the stockiest, now we focus on Customer profile and Organizational Structure for smooth flow of information to have a clear and efficient operation within the organization so which proportionately have an effect on other organization in supply chain. A Group of Companies right from Production house (Bio-Utilitario Private Limited.,) and have a marketing Company, Later the owner ship is transferred to Stockiest (BioFields Impex Private Limited., and the retails from different villages.


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Customer Profile The target customer would be based on the assumption that the marketing team of the company has one stockiest for each district in a state and as a Stockiest we focus on further sub divisional level with are classified on the basis on taluk, to have a better information management system. The role of the stockiest is to allocate a retailer as per the demographic availability and feasibility of a retailer. The retailer’s are selected based on the following requirements when there is a franchisee allocated, and the reason for allocating the franchise/retail through distribution channel would be due to the better knowledge of the market, improve the efficiency and maximize profit through operations. What are the requirements to open a franchise/retail outlet?

Financial requirements


Business Experience

Good Management skills

Good Credit history

Exceptional customer experience

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The selection of the retailer is at the sole discretion of the stockiest, as per the fulfillment of the requirements by the applicant. Financial requirements - An initial down payment is required when allotted a franchise; since the total cost varies from place to place the minimum down payment will vary, the down payment should come from non-borrowed personal sources. Individual with additional funds may be better prepared for additional or multi-retail opportunity which we encourage. Business Experience - Individuals who have demonstrated successful ownership or management of multiple business units or have managed multiple departments. Good management skills - Commitment to personally manage the day-to-day operations of the retail business. Good credit history - An acceptable credit history Exceptional customer experience - The capability to effectively manage an organization that recruits, trains, and motivates employees who deliver an exceptional customer experience with an understanding of Indian farmer psychology.

Organizational Structure The business model is based on the idea of Intelligent-Business – IB and we are focusing on the role of stockiest who is M/s. BioFields Impex Pvt Ltd., who control the Distribution and logistics of a district in Karnataka i.e., Udupi District, and the District is divided in to three taluk which represent three zones based on the sales organization to get maximum flow of information and we have further divided in to Three verticals based on the Products offered also known as Product Verticals for better ability and deep understanding of the expertise area ;


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1. Seeds Vertical 2. Fertilizer Vertical 3. Pesticide Verticals Under the Operations department the different verticals will have a similar Organizational structure, as we are focusing on one warehouse for the entire district to reduce the cost of warehousing and the Human resource. The warehouse would be as mentioned in the following diagram with a headcount of 43 employees.


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The roles and responsibilities along with the qualifications required for the Designations are as follows: Roles and responsibly for Manager Qualifications Operations Manage Day to day Operations, Co-ordinate MBA/PGDM in Operations with different Verticals and should be one Prior work experience In Sales and Operations stop for all the Activities for the managing of around 5 Years. Director, Check the regular activities on a regular basis, and Decision making point for any immediate approach, Continuous interaction with all the People in all the verticals. Should report to the MD. Roles and responsibly for Manager HR Qualification Manage and Forecast headcounts, Recruit, MBA /PGDM in HR Develop Organizational development, policy Prior work experience in HRD of around Recommendation, Employee Relationship, 3Years Organization Building, and Salary Benefits. Roles and responsibly for Manager IT Qualification Work as Chief Operating Officer, Monitor MCA Or PGDCA Network Communication, Help in getting new Prior 2 years work experience in Handling ideas for the purpose of Managing the Business Intelligence. Companies essential needs from Information Technology with new ideas, Improve The IT success rate, Roles and responsibly for Asst Ops Manager Qualification Manage Day to day Operations, Co-ordinate MBA/PGDM in Operations with different People, should be one stop for Prior work experience In Sales and Operations all the Activities in the vertical and report to of around 2 Years. the Operations manager, coordinate with other departmental Heads Roles and responsibly for HR Coordinator Qualification Report to HR Manager, involves in daily Head MBA in HR count, Salary request to the ants, Prior work experience in HR Fresher Getting information and reporting to the manager, Developmental activities M/s. BioFields Impex Pvt Ltd.,

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Roles and responsibly for IT Qualification Manages Software packages, isters Microsoft Certification, B.Tech CS Network Applications, Prior Work experience in IT for 2 years.

Roles and responsibly for ant Preparing statements day to day transactions. Maintain Bank and Cashbook. Preparing Petty Cash vouchers, TDS, Service Tax, PF, ESI, Central Excise Returns, Sales Tax (VAT) returns, Filing monthly and annually. Reconciling of s.

Qualification B.Com Working knowledge on SAP ERP, Finance and Controlling (FICO), work exp with minimum of 3 years.

Roles and responsibly for IT D & M Qualification Manages Software packages, isters Microsoft Certification, B.Tech CS Network Applications, Prior Work experience in IT for 2 years.

Roles and responsibly for Logistic Controller Working knowledge on SAP ERP Material management (MM). Forecast the requirement of Stocks and Manage the End to end Distribution

Roles and responsibly for Sales Executive Need to co-ordinate with the s and Logistic so to Identify and Organize & structure the requirements of sales and Report to the Asst ops Manager with the sales report.

Qualification B.Com Working knowledge on SAP ERP Material management (MM), work exp with minimum of 3 years.

Qualification Graduation Prior Work Experience in Sales and Marketing with min 4 years. Preferably in the same industry.

Roles and responsibly for Store Keeper Qualification Need to maintain the required stock levels and B.Com intimate and coordinate with the s Prior Work Experience in Store Keeping with and Logistic department to efficient and min 2 years. smooth flow of information, report to the Asst Ops Manager


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Infrastructure requirements for Execution In the initial stages the plan is to start at a location which is well connected to all the villages, with well connected road and a hub based on the hub and spoke model, the major infrastructure requirement for starting this venture is the space for istration and the warehouse, which would be at SEZ1, Padubidri of Udupi District which is well connected with road, rail and sea and availability of water and also a Tier II city, Office and warehouse situated at the same place, and Other requirements include furniture and computers, chairs warehouse equipments and a server. The premises would be purchased so as to have a better application of cash flow and better Fund flows. The approximate details of the quantities required have been specified in the financials section.

Business Process Modeling & Execution Business Process: A specific ordering of work activities across time and place, with a beginning, an end, and clearly defined inputs and outputs. Business processes are the structure by which the organization physically does what is necessary to produce value for its customers and are broadly defined across functions/departments. Process Model: A representation of one or more processes and their associations that an enterprise performs. Process modeling is a mechanism for describing and communicating the current or intended future state of a business process. Business Process Model: A mechanism for describing and communicating the current or intended future state of a business process. A right blend of management and IT is used to comprehensively design, execute and monitor all business process involving humans, machines, organizations and environments. With the aid of Business Process Development, complex activities are broken down to simple segments and then each segment is overhauled, a module put in place to get the best out of the resources available along with a monitoring system for easy troubleshooting. Finally all working segment are then synchronized to create renewed and efficient working model, for this we have adapted to the implementation of SAP Business One ERP2 suite.

1 2

Special Economic zone Enterprise Resource Planning


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Vendor •Bio - Utilitario Private Limited.,

Middlemen •BioFields Impex Pvt ltd

Client •Biofer Enterprises •Agronic Chemical & Fertilizers

The Business process development and Execution is done through an intensive research of how today’s business works and what are the factors considered to start a business with a scope of improvement and Internal Audit control, The Basic Principle is “Intelligent-Business” which is a focus on all the departments and are interlinked to one another through the Information systems to indulge in better efficiency and Maximize Profit through Minimizing cost through time taken for execution or Perform.

Object Modeling Our work presents an approach to model resource dependencies among IT infrastructure elements. Although our proposed attempt formalizing dependencies within IT infrastructures is very basic we see many aspects of application. To understand the IT infrastructure as a collection of related entities, we begin by constructing an object model of the enterprise. Beginning with a traditional view of the IT infrastructure as a group of technologies, the model should at least encom all the IT assets which comprise the enterprise IT infrastructure. These assets, from a company perspective, include the recesses (documents), roles (human resources) and services. A service is a collection of IT resources that is provided to a customer to enable them to operate their business on a day-to-day and long term basis. The business process plan for execution of work from each department so as to work towards the detailed business plan to the successful delivery of the warm zone. As stated earlier, our intent is to progress from the producer approach towards a service centric approach with representation on infrastructure. To align the model more explicitly with service representation, we can re-group the main entities so that the model reflects the enterprise as a transaction between two roles – a Vendor and the Client.


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IT Infrastructure Model •

•

•

Business Gateway Layer • Interface Into Applications and Systems • Partners, Employees, Suppliers, customers Application Layer • Programs that implement and automate business processes • CRM, ERP, PROJ MGMT, ING, INVENTORY MGMT Physical Layer • Tangible Building Blocks. • HARDWARE: - Desktops, Mid-Range Systems, Mainframes Systems. • Operating System: - Windows XP, Linux, UNIX. • Physical Plant: - Cabling.


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•

•

Services Layer • Intermediate and general purpose services upon which applications are built. • Email Management, transport, ID management, Data Warehouses, Data Recovery, General Security. Telecommunication Layer • Provides connectivity between all Layers. • LAN\WAN, ISP, WIRELESS.

Some other factors can be considered to include to better the service with the Stock handling capacity Sales order processing ,warehouse management using mobile phones, Weather information relates to sales forecasting, inventory planning , reduction in logistics cost Use Of SMS for Pull of information, Low cost - Technology solution, Use a template for sending SMS on weather information . Template can be pushed to Mobiles depending on season. Template to include, district, taluk, crop, acreage, crop condition, weather, dam water levels. Farmer level, distributor level information can be used for inventory movement. Advance knowledge of weather coupled with field data on acreage under coverage, will help fertilizer companies in inventory management. Lower inventory M/s. BioFields Impex Pvt Ltd.,

lower cost

higher profitability Page 15


Mobile IWM3 for the Warehouse Manager The Warehouse manager can view different orders placed by each of the dealers and the corresponding payments created by the dealers for the same, Once the dealer arrives at the warehouse with the physical DD and DDFL, the warehouse manager can the same and acknowledge physical receipt so that the payment is parked into SAP. The WM can then create a delivery and delivery challan to enable the dealer pick up material from the warehouse. This Kind of Business Process modeling and execution can be called as “IntelligentBusiness” Here is a sample Diagram of How “Intelligent-Business” put into practice.

3

Internet Warehouse Manager


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Financials Investment INVESTMENT Particulars Per Unit Total Land and Building (in Area and Amount) Land from KIADB (2 acres - 8093.746Sq MTR) 160.00 1,350,000.00 Includes registration and Licensing to KIADB (Source: http://www.indiaproperty.com/property/IP446871/) Building (Construction) Shed 1 500,000.00 Shed 2 500,000.00 Shed 3 500,000.00 Office Building 600,000.00 Total Building Cost (with Electrifications) 2,100,000.00 Specification of Shed's Dimension width (Ft) : 50 Length (ft) : 150 Height (ft) : 16 Roof Pitch : 2:12 (source : BuildingsGuide.com reference number 693852010-01-04) Machinery & Equipments/Tools DG Set (onsite with installation) 1 no caterpillar make 80Kv 750,000.00 (source: caterpiller.com) Hydraulic Pallet Truck (9no's) 7,250.00 65,250.00 Hand Truck (3no's) 11,890.00 35,670.00 (Source : http://www.alibaba.com/buyeroffers/hand_pallet_truck/IN---------------.html) Computers Desktops (12 no's) 17,000.00 204,000.00 Laptops (7no's) 27,000.00 189,000.00 Printers (8 no's) 4,500.00 36,000.00 Computer Furniture 175,000.00 Setting up the Office 200,000.00 SAP Business One (software suite) 175,000.00 Aqua Guard Water Purifier (2no's) 10,000.00 Air Condition (2 no's) 50,000.00 Advertising and marketing 50,000.00 Miscellaneous 150,000.00 Total Investment 5,539,920.00 M/s. BioFields Impex Pvt Ltd.,

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(Total Amount required in words: Fifty Five Lacks Thirty Nine Thousand Nine Hundred and Twenty Rupees Only) The figures relating to the associated costs are an average for one single unit (are expected to operate on similar line estimated)

Assumptions  

All figures are considered at current market rates.(Based on Quotations and References) Basic market conditions are assumed to stay constant through factors like inflation.

Profit Margin The prices for each of the mentioned products and enlisted below for which we have also specified the cost price, selling price with the Profit margin for each product. The prices are in INR4. Specification Seeds

Fertilizer Pesticides

Name Of the Products BIO paddy BIO sunflower BIO corn BIO manure BIO zinc sulphate BIO DAP

Quantity per Bag 12Kgs 2Kgs 2Kgs 50Kgs 10Kgs 50Kgs

Cost Price 190.00 75.00 75.00 200.00 190.00 375.00

Selling Price 225.00 95.00 95.00 260.00 230.00 450.00

Profit 35.00 20.00 20.00 60.00 40.00 75.00

The variable cost for every month is assumed as follows, in INR Particulars Salary Electricity Charges Telephone and Internet Charges Housekeeping Packing Materials Stationery Staff Welfare Miscellaneous Total Variable Cost Per Month

4

Amount 259,200.00 6,000.00 9,000.00 4,000.00 5,000.00 3,000.00 10,000.00 3,800.00 300,000.00

Indian Rupees


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While ascertaining the prices we have considered the market price of the competitors and how we can create a Profit value chain in the process. In the Process to break even the stockiest must have sales of atleast INR 64,00,000.00 In Words (Sixty Four Lacks Rupees Only)

Conclusion “Business is a Business to do Business “Is an usual Phrase on which we do business, But what we have leverage through our Business Plan/Detailed Project report is “Business is a Business to do business with Intelligent-Business” where we not only talk about the usual way of managing business but an efficient way of having an help from IT5. The management of ITInfrastructures has gained increased relevance to business as business processes and thus the business profit rely on IT services, which in turn depend on the underlying infrastructure, The changing states of resources and resource dependencies manifest the behavior of the infrastructure and is correlated with the behavior of a service facing the and thus with the service quality. Our work presents an approach to model resource dependencies among IT infrastructure elements. Although our proposed attempt formalizing dependencies within IT infrastructures is very basic we see many aspects of application. As the relation and dependency elements of our model may be flexible enhanced adding attributes, calculation, rules, etc., The analysis have been made with continuous interaction with marketing personal to cover the ground reality from their experience, At the time of final selection the location of a town preference is judged on center of gravity basis and it’s accessibility to the local farmers. This center of gravity simulation and accessibility features matched well from the Google Maps. The potential of Information Technology is yet to be fully tapped in the major segment of the fertilizer industry with respect to marketing activity, notwithstanding the need for quality information for decision making. The fertilizer marketing activity involves flow of large volume of information, movement of documents in addition to handling of millions of tones of fertilizer material. Information technology can play an important role in improving the efficiency and effectiveness.

5

Information Technology


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Bibliography Role of Information Technology in Fertilizer Marketing –S.c.Mittal & T.Sudhakar –IMSR Fertilizer use by crop in India-Food & Agricultural Organization of the united nation-Rome 2005 Distribution Network analysis for marketing of fertilizer – Mapasia 2002 – New Delhi Modeling The Enterprise IT Infrastructure-David chi & D L Tsui http://www.mvdb.virginia.gov/ CDC- Capgemini -2004, New Delhi Modeling Dependencies of IT Infrastructure Elements- Klaus Scheibenberger, Ingo Pansa, 2007

http://www.krishiworld.com/html/field_crops11.html http://www.sbsccsoftware.com/about.htm http://www.agriculture-industry-india.com/national-seeds-policy/seed-distributionmarketing.html http://www.agriculture-industry-india.com/agriculture-products/ http://www.kumbangalore.com/Htmlpages/policy/162/index.htm http://www.techno-preneur.net/technology/Project-Profiles/food/seed.htm http://www.fao.org/docrep/009/a0257e/A0257E07.htm#fig5 http://www.knowledgebank.irri.org/GRCmanuals/default.htm#Protocol_for_seed_distribution. htm http://www.fao.org/docrep/009/a0257e/A0257E07.htm http://www.mangalorechemicals.com/


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