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7/28/2019 Business Research Method Report
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Business Research Method Report
On
Vendor Sales Analysis on Coffee
Submitted By
Prabhakar K D Vardhan 1226112238
Vulluri Pawan Kumar 1226112259
K Chaitanya Guttula 1226112223
Submitted To
Dr. R. Venkateswarlu (Professor & Assistant Director)
Dr. B. Padma Narayan (Assistant Professor)
Visakhapatnam
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Acknowledgement
This research project would not have been possible without the support of many people. We wish
to express our gratitude to our Professor Dr. R. Venkateswarlu who was abundantly helpful and
offered valuable assistance, support and guidance. Our deepest gratitude are also with our
Assistant Professor Dr. B. Padma Narayan without whose knowledge and assistance this study
would not have been successful. We are very delightful to her for her support in each and every
step of our research paper. We would also like to convey thanks to the Nilgiri Coffee Works for
providing all the financial data and all the necessary data without which we won’t be able to
complete our research. Finally, we would like to thank all the people who directly or indirectly
helped us in making this research paper.
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Contents
Executive Summary
Introduction
Business Environment
Objectives of the Research
Supply Chain Process
Inventory Management
Lead Time and Procurement of goods
Methodology
Results
Conclusions and Future Suggestions
References
Appendix
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Executive Summary
Coffee today is the 2nd
largest traded commodity in the world. It is been consumed by many
persons day in and day out. Coffee production is mainly dominated in South India with leading
Karnataka with 53% followed by Kerala and Tamil Nadu. The major competitors of our business
are Coffee Day, Nescafe, and BRU etc. This paper covers the overall supply chain of our coffee
business. It shows the network of how the raw coffee beans from farmers reach the Retailers.
Also it tells about how the inventory is managed efficiently. The entire lead time and
procurement of goods are also calculated. The major part in this paper is the sales and purchase
of our business as per the seasonal variations. Through this data we have seen significance in
between two months and also one month with the overall months. Finally we have analyzed the
sales growth and also forecast for the upcoming months.
Introduction:
Coffee is the 2nd
traded commodity in the world after crude oil and it is cultivated across 80
nations in the world (central & south America, Africa, & Asia).Coffee production in India is
dominated in the hill tracts of South Indian states, with the state of Karnataka accounting 53%
followed by Kerala 28% and Tamil Nadu 11% of production of 8,200 tonnes. Indian coffee is
said to be the finest coffee grown in the shade rather than direct sunlight anywhere in the
world. There are approximately 250,000 coffee growers in India. Coffee is grown in three
regions of India with Karnataka, Kerala and Tamil Nadu forming the traditional coffee growing
region of South India. Ideal climatic conditions to grow coffee are related to temperature and
rainfall; temperatures in the range of 73 °F (23 °C) and 82 °F (28 °C) with rainfall incidence in
the range of 60 – 80 inches (1.5 – 2.0 m) followed by a dry spell of 2 – 3 months suit
the Arabica variety. Cold temperatures closer to freezing conditions are not suitable to grow
coffee. Thought, the Indian coffee industry is expected to post sound growth on account of
growing domestic demand. Key pressing issues of labor shortage and migration, and tremendous
increase in cost of labor are major concern areas for the industry.
Business environment
According to business in this coffee production sector there are many competitors like Nescafe,
coffee day & Bru. These are the major competitors in this sector at present. These companies are
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trying to be no.1 in supplying required quantity to the required customers but they are decreasing
the quality of the product. Due to this the small scale industries could not be developed. So, this
is the main issues facing by the small scale industries.
Objectives
The main objectives of our project are as follows:
Supply chain management
Inventory management
Lead time & Procurement of goods depending on seasonal variations
Sales volatility depending on seasonal variations.
Monthly variations taking daily sales
Supply Chain Process
Farmers Central Warehouse Wholesale Distributors Retail Manufacturer
Figure.1 Supply Chain management of Raw Materials (farmers to Retail Mfrs)
Tamil
Nadu
Bangalore
(Coffee Board
of India)
Puja Coffee
Works
Ambica CoffeeWorks
Neelagiri
Coffee Works
Karnataka
Kerala
Andhra
Pradesh
Nadars Coffee
Works
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Figure 1 depicts the supply chain process involved in flow of Raw Materials from Farmers to
Retail Manufacturers. As shown in the figure, coffee beans are grown mainly in the three regions
i.e.., Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. The major production of coffee is
from the state of Karnataka of about 53% followed by Kerala about 28%, Tamil Nadu about 11%
and Andhra Pradesh about 2%. The overall coffee production is sold at the Coffee Board of India
for about Rs. 100 – Rs. 300 per Kg according to coffee seeds grading. Coffee Board of India is
said to be the Central Warehouse. Every month Coffee Board of India sets an auction for the
coffee and the one who bids the highest buys the coffee. In the auction there will be several
Wholesale Distributors namely Nadars Coffee Works, Puja Coffee Works, Ambica Coffee
Works etc.
Inventory Management
The incoming coffee bean stocks are placed in the godown which is in the shop. The area of the
shop is (8*9) *2 mt. So, approximately we can place around 1000Kg of coffee bean bags
according to different varieties in different lots so that based on the lots there will be an ease in
the process of taking the bags out and deliver it to the customer. There will be proper ventilation
also the gunny bags will be thick so that there will be no moisture content. Also all the gunny
bags will be placed over a plastic cover so that vapor content from the ground won’t allow
moisture content into the gunny bags. As per customer’s demands and needs coffee beans are
sold in different formats like raw, roasted or powder.
Lead time & Procurement of goods depending on seasonal variations:
Generally, the coffee bean seeds are mainly procured at our distributors place. We usually buy
coffee bean seeds in a lot but we bring only 1 ton coffee bags with us and rest will be procured at
our distributor’s warehouse. Whenever there is a shortage in our godown we will be calling to
our distributors and inform them about demand. Then they will send the bags within 2 working
days and all the costs of transportation, labor and unloading charges are paid by us.
There will be huge amount of procurement of coffee during rainy season and winter season. So
to satisfy the demands in both these seasons, we will procure a large amount of stock in summer
season itself. The reason behind this is that in rainy season and winter season, the moisture
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content in seeds will be more due to which the operation charges and processing time will be
more. Since, the quality of the seeds in summer season is also nice as compared to other season
so we buy a large quantity in summer and procure them at our distributors warehouse and as well
as in our godown so that we can match our customers demand.
Methodology
The methodology which we processed our research is by doing an trend projection of sales for
every months and analyzing the significance on comparing each month with every other months
through one way anova through spss and observing the growth of sales from one month to
succeeding months and measuring inventory stocks.
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Conclusion
Hence from the above obtained output from SPSS and excel, we can observe that while
comparing one month with the remaining months, we find that it will be less significant since the
demand vary every month so, the sales may vary. Hence it will be less significant. We also
observe that in the month April and July, it is very significant since sales in those seasons are
large. This is mainly due to winter season and also it is the beginning of financial year. Finally
comparing the sales growth monthly we can observe that it is also more significant due to
seasonal variations.
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GRAPHS
over all sales growth
APRIL SALES
MAY SALES
-100000
0
100000
200000
300000
400000
500000
600000
1 2 3 4 5 6 7 8 9 10
sales
growth
0
5000
10000
15000
2000025000
30000
35000
4 / 1 / 2 0 1 2
4 / 3 / 2 0 1 2
4 / 5 / 2 0 1 2
4 / 7 / 2 0 1 2
4 / 9 / 2 0 1 2
4 / 1 1 / 2 0 1 2
4 / 1 3 / 2 0 1 2
4 / 1 5 / 2 0 1 2
4 / 1 7 / 2 0 1 2
4 / 1 9 / 2 0 1 2
4 / 2 1 / 2 0 1 2
4 / 2 3 / 2 0 1 2
4 / 2 5 / 2 0 1 2
4 / 2 7 / 2 0 1 2
4 / 2 9 / 2 0 1 2
Amount
Amount
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JUNE SALES
JULY SALES
0
5000
10000
15000
20000
25000
30000
35000
40000
5 / 1 / 2 0 1 2
5 / 3 / 2 0 1 2
5 / 5 / 2 0 1 2
5 / 7 / 2 0 1 2
5 / 9 / 2 0 1 2
5 / 1 1 / 2 0 1 2
5 / 1 3 / 2 0 1 2
5 / 1 5 / 2 0 1 2
5 / 1 7 / 2 0 1 2
5 / 1 9 / 2 0 1 2
5 / 2 1 / 2 0 1 2
5 / 2 3 / 2 0 1 2
5 / 2 5 / 2 0 1 2
5 / 2 7 / 2 0 1 2
5 / 2 9 / 2 0 1 2
5 / 3 1 / 2 0 1 2
Amount
Amount
0
500010000
15000
20000
25000
30000
35000
40000
6 / 1 / 2 0 1 2
6 / 3 / 2 0 1 2
6 / 5 / 2 0 1 2
6 / 7 / 2 0 1 2
6 / 9 / 2 0 1 2
6 / 1 1 / 2 0 1 2
6 / 1 3 / 2 0 1 2
6 / 1 5 / 2 0 1 2
6 / 1 7 / 2 0 1 2
6 / 1 9 / 2 0 1 2
6 / 2 1 / 2 0 1 2
6 / 2 3 / 2 0 1 2
6 / 2 5 / 2 0 1 2
6 / 2 7 / 2 0 1 2
6 / 2 9 / 2 0 1 2
Amount
Amount
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AUGUEST SALES
SEPTEMBER SALES
0
5000
10000
15000
20000
25000
30000
7 / 1 / 2 0 1 2
7 / 3 / 2 0 1 2
7 / 5 / 2 0 1 2
7 / 7 / 2 0 1 2
7 / 9 / 2 0 1 2
7 / 1 1 / 2 0 1 2
7 / 1 3 / 2 0 1 2
7 / 1 5 / 2 0 1 2
7 / 1 7 / 2 0 1 2
7 / 1 9 / 2 0 1 2
7 / 2 1 / 2 0 1 2
7 / 2 3 / 2 0 1 2
7 / 2 5 / 2 0 1 2
7 / 2 7 / 2 0 1 2
7 / 2 9 / 2 0 1 2
7 / 3 1 / 2 0 1 2
Amount
Amount
0
500010000
15000
20000
25000
30000
35000
40000
8 / 1 / 2 0 1 2
8 / 3 / 2 0 1 2
8 / 5 / 2 0 1 2
8 / 7 / 2 0 1 2
8 / 9 / 2 0 1 2
8 / 1 1 / 2 0 1 2
8 / 1 3 / 2 0 1 2
8 / 1 5 / 2 0 1 2
8 / 1 7 / 2 0 1 2
8 / 1 9 / 2 0 1 2
8 / 2 1 / 2 0 1 2
8 / 2 3 / 2 0 1 2
8 / 2 5 / 2 0 1 2
8 / 2 7 / 2 0 1 2
8 / 2 9 / 2 0 1 2
8 / 3 1 / 2 0 1 2
Amount
Amount
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TREND PROJECTED SALES
0
10000
20000
30000
40000
50000
60000
9 / 1 / 2 0 1 2
9 / 3 / 2 0 1 2
9 / 5 / 2 0 1 2
9 / 7 / 2 0 1 2
9 / 9 / 2 0 1 2
9 / 1 1 / 2 0 1 2
9 / 1 3 / 2 0 1 2
9 / 1 5 / 2 0 1 2
9 / 1 7 / 2 0 1 2
9 / 1 9 / 2 0 1 2
9 / 2 1 / 2 0 1 2
9 / 2 3 / 2 0 1 2
9 / 2 5 / 2 0 1 2
9 / 2 7 / 2 0 1 2
9 / 2 9 / 2 0 1 2
Amount
Amount
0
50000
100000
150000
200000
250000
300000
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