Professional Documents
Culture Documents
Study On Business Re-Structuring MARKFED Odisha - V 6.0 - Final - 28092021
Study On Business Re-Structuring MARKFED Odisha - V 6.0 - Final - 28092021
Page 1 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Table of Contents
HISTORY OF ODISHA ................................................................................................. 10
OUR APPROACH....................................................................................................... 14
IT ENABLEMENT ....................................................................................................... 72
Page 3 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
SUMMARY .............................................................................................................. 75
10.1. Punjab....................................................................................................................... 76
10.2. Kerala ....................................................................................................................... 77
10.3. Tamil Nadu ................................................................................................................. 77
10.4. Gujrat ....................................................................................................................... 77
Page 4 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
List of Abbreviations
Acronym Description
DA&FE Department of Agriculture and Farmers’ Empowerment
DCCB District Co-operative Central Bank
DRCS DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES
DRCS DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES
GM General Manager
GOI Government of India
HO Head Office
LAMPS Large-sized Adivasi Multipurpose Cooperative Society
MARKFED Marketing Federation Ltd.
MD Managing Director
MSP Minimum Support Price
NAFED National Agricultural Cooperative Marketing Federation of India Ltd
NCDC National Cooperative Development Corporation
OTD on-time delivery
OTIF on-time in-full
PACS Primary Agricultural Cooperative Societies
PPP Public-Private Partnership
PSF Price Stabilization Fund
PSS Price Support Scheme
RCS Registration of a Cooperative Society
RKVY Rashtriya Krishi Vikas Yojana
TOT Turn Around Time
WMS Warehouse management system
Page 5 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
List of figures
Figure 1 Odisha Agriculture Map .................................................................................................. 10
Figure 2 Agricultural Hubs of Odisha ............................................................................................. 11
Figure 3 Current State of MARKFED ............................................................................................... 14
Figure 4 Our Approach .............................................................................................................. 15
Figure 5 Current Manpower of MARKFED ......................................................................................... 16
Figure 6 Current Organisational Structure ....................................................................................... 18
Figure 7 Types of Employment .................................................................................................... 22
Figure 8 Location wise Employment status ...................................................................................... 23
Figure 9 Designation wise Outsourced Employees .............................................................................. 24
Figure 10 Roles & Responsibilities of Area Manager MARKFED ................................................................ 24
Figure 11 Go Down Superintendent Roles & Responsibilities .................................................................. 25
Figure 12 Inadequacy of Area Managers. ......................................................................................... 27
Figure 13 District Wise Go Down Distributions .................................................................................. 28
Figure 14 Org. Key divisions........................................................................................................ 32
Figure 15 Proposed Organisational structure .................................................................................... 33
Figure 16- Recommended Recruitment Process ................................................................................. 36
Figure 17 Recommended Plant Level Vacancies ................................................................................ 36
Figure 18 Recommended Recruitment Process .................................................................................. 38
Figure 19 Succession Planning ..................................................................................................... 39
Figure 20 Assets & Services of MAKRFED ......................................................................................... 40
Figure 21 Dashboard of Godowns .................................................................................................. 41
Figure 22 District Wise unused godowns ......................................................................................... 42
Figure 23 Reasons for Unused Capacity of the Godowns ....................................................................... 42
Figure 24 Utilization data of Godowns ........................................................................................... 43
Figure 25 Godowns Capacity ....................................................................................................... 43
Figure 26 Price Support System (PSS) of MARKFED ............................................................................. 44
Figure 27 Targets Vs Achieved Different Commodities ......................................................................... 45
Figure 28 Last 3 Years (PSS) Sales Target vs Achieved ......................................................................... 46
Figure 29 MARKFED fertilizer distribution process .............................................................................. 47
Figure 30 Last 3 Years Fertilizer (Sales & Target) .............................................................................. 47
Figure 31 District wise inventory Analysis (I) .................................................................................... 48
Figure 32 District Inventory Analysis (ii) ......................................................................................... 49
Figure 33 Top Fertilizer by Total Sales ........................................................................................... 50
Figure 34 District wise total stock v/s Closing Balance (Value in MT) ....................................................... 51
Figure 35 Fishbone Diagram of the MAKRFED .................................................................................... 52
Figure 36 Recommended ICT Based ECO System for MARKFED................................................................ 57
Figure 37 Remodel Storage Supply ................................................................................................ 64
Figure 38 Proposed Warehouse Management System ........................................................................... 65
Figure 39 Training Survey Report ................................................................................................. 67
Figure 40 MFMS Training Survey ................................................................................................... 68
Figure 41 Computer Knowledge Survey .......................................................................................... 68
Figure 42 Functional Architecture ................................................................................................ 74
Figure 43 Good Practice ............................................................................................................ 76
Page 6 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
ACKNOWLEDGEMENTS
We would like to thank the Sri. Santosh Kumar Dash, Managing Director (MD), Dr. Sushanta Kumar Panda,
Secretary, Smt. Deepa Nayak, General Manager (Finance), Sri. Nrusingha Patnaik, Manager (Establishment &
Audit) of MARKFED Odisha, Sri. Prakash Pattanaik, Manager (Input), Sri. Loka Ranjan Mishra, Manager (Estate,
Assets & Inspection) and entire staff including Area Managers, Godown Managers from MARKFED Odisha for
their proactive cooperation & support towards providing important inputs which enabled our team to
complete the study report on Business Re-Structuring of MARKFED, Odisha within such an aggressive timeline
of 3 weeks.
The BDO team expresses its gratitude to the MARKFED, Odisha’s Departments and the district employees of
the ODISHA STATE COOPERATIVE MARKETING FEDERATION LTD, STATE GOVERNMENT OF ODISHA for their
Page 7 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
DISCLAIMER
By reading the report, the reader accepts the terms and conditions mentioned hereunder.
This Report (“Report”) is prepared solely for the Odisha State Co-Operative Marketing Federation Ltd. (MARKFED).
This Report is intended for the Odisha State Co-Operative Marketing Federation Ltd. (MARKFED)’s internal use only,
subject to the terms and conditions mentioned therein in the Contract / PO no. 3279 and may not be relied upon by
other parties (“Third Party”). Neither this Report nor its contents may be distributed to, discussed with, or otherwise
disclosed to any Third Party without the prior written consent of BDO India LLP (“BDO India” or “we” or “our” or
“us”). Any other persons who choose to rely on these observations may do so entirely at their own risk.
Our procedure and findings are based solely on the data, documentation, information and explanation that has been
provided to us during the course of our engagement till September 2021 of the final report>. In case, we come across
information which may have bearing on the findings and observation made in this report subsequent to submission of
report, we have no responsibility to update this Report. In circumstances, where any additional information become
available from or with respect to the engagement to us, we would be glad to carry out additional procedure as may
be separately agreed with the Client.
The work carried out and analysis presented in this Report are based on the result of our discussion with
representatives of Odisha State Co-Operative Marketing Federation Ltd. (MARKFED) /BDO India LLP and are not always
supported by written documentation. We make no representation regarding the sufficiency of the procedures
performed either for the purpose for which this engagement was sought or for any other purpose. Findings are based
on circumstantial evidence and partially concluded in the absence of adequate supporting / documents.
We have relied on the information provided by the Odisha State Co-Operative Marketing Federation Ltd. (MARKFED)
and BDO India LLP and our observations are based primarily on the review of such information. In respect of the
information in soft copy form received from the Odisha State Co-Operative Marketing Federation Ltd. (MARKFED), no
independent verification with the original documents is carried out.
This Report does not constitute an engagement to provide audit, compilation, review, or attestation services made
in accordance with the generally accepted auditing standards in India and, consequently, no assurance will be
expressed. Our work would not be any expression of an opinion or testimony of expert witness. In any manner, the
engagement does not extend to provide advice, analysis and observations relating to legal and regulatory issues.
In no circumstances shall we be liable, for any loss or damage, of whatsoever nature, arising from information
material to our work being withheld or concealed from us or misrepresented to us by any person of whom we made
information requests at the bank or on field.
BDO India LLP has executed detailed work steps as identified and agreed in our scope of work.
We assume no responsibility for the accuracy and completeness of information, that cost/benefit and other
considerations will preclude us from pursuing every conceivable source of information. Further, we have used
professional judgment to identify the information source to be searched. If other professional undertook similar
procedures on the same subjects, such professionals might provide different findings. Accordingly, we do not provide
assurance that all information will be available in the public and private domain.
Odisha State Co-Operative Marketing Federation Ltd. (MARKFED) shall be fully and solely responsible for applying
independent judgment, with respect to the findings included in this Report, to make appropriate decisions in relation
to the future course of action, if any. BDO India shall not take responsibility for the consequences resulting from
decisions based on information included in the report.
BDO has not identified, addressed, or corrected any errors or defects in the computer systems, other devices or
components thereof (“Systems”), whether or not due to imprecise or ambiguous entry, storage, interpretation or
processing or reporting of data. We will not be responsible for any defect or problem arising out of or related to data
processing in any Systems.
Page 8 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Our reports and comments should not be considered a definitive pronouncement on the individual or the company.
When assisting the Client in the Performance of BDO India’s activities, BDO India has not:
Page 9 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
HISTORY OF ODISHA
Odisha is a state in which majority of its population is dependent on agriculture for livelihood. It is
essential that the state has a transparent view of all farmers of the state including cultivators and
sharecroppers.
Agricultural sustainability can be termed as production of food-grains using such techniques that are in favour
environment, public health, human communities, and animal welfare. Indian economy comprises corporate
sector, service sector and agriculture sector. Agriculture is the backbone for any country’s economic
development.
Odisha Agriculture1 is the major contributor to the state's economy. Agriculture is the chief occupation in
Odisha. About 76% of the total working population is engaged with agriculture and agriculture related
industries. The total cropped area in Odisha is 87,46,000 Hectares and out of that 18,79,000 Hectares are
under irrigation.
1
https://agriodisha.nic.in/
Page 10 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Cuttack
Sambalpur Dhenkanal
Baleshwar
Page 11 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Sir Edward Law to report on the introduction of cooperative societies in India. The Committee reported favorably
in 1903 and the first Cooperative Credit Societies Act was passed in 1904 with an objective to play a vital role
in Socioeconomic upliftment of the rural people. These institutions have been assigned a place of paramount
importance in the process of planned development. Odisha has been one of the pioneering States in the Country
in respect of co-operative movement as the first Co-operative Society, namely, Cuttack Cooperative Store was
established in the year 1898 under the leadership of Utkal Gourab Madhusudan Das. This heralded the beginning
Odisha State Co-Operative Marketing Federation Ltd. (MARKFED) was previously known as Orissa State Co-op
Marketing Society. Came in the existence in the year of 1949 under Bihar-Orissa Co-operative Societies Act,1935.
And MARKFED Started functioning since 11/06/1949 with the Main object of helping the farmers to secure better
price for their produce by taking care of their market needs and providing agricultural inputs. The existence of
MARKFED entails a proper equilibrium between its existence as a cooperative society with the purpose of
providing farmers the right deal and as a business concern, the main aim of which is to earn profit.
The name of the society was amended to Odisha State Co-operative Marketing Federation (OSCMF) Ltd. since
11/05/1976 and was mandated to provide qualitative service in the following fields: -
a. Market/ Distribute chemical fertilizers, pesticides, Agricultural implements to the farmers of the State at
b. Procurement of Agricultural commodities under Price Support Scheme (PSS) & Price Stabilization Fund (PSF)
MARKFED eventually became key moment in the history of local cooperatives, servicing millions of farmers and
Page 12 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ Conduct high level assessment of the organization in terms of the manpower, operations, and
businesses processes.
➢ To identify the key gaps or key improvement areas which can be implemented to ensure the better
efficiency and improvement of the overall operations.
➢ To provide high level recommendations on various interventions
Page 13 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
OUR APPROACH
In order to take up the overall assignment on a Fastrack mode under given timeline of 3 weeks. We have
performed high level assessment of MARKFED’s overall organisation structure, operations, processes, and
Infrastructure to identify key improvement areas. A broad understanding of the same is given as below: -
Our Approach to developing a Study Report on Business Re-structuring of MARKFED, Odisha for the MARKFED
Department We planned a one-week workshop with departmental personnel experts in their fields. We
gathered information about current state of Human Resources, Supply Chain Management, Capacity Building,
and Change Management. We also studied and analysed the available documents which were made available.
Page 14 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
As-Is Assessment
Page 15 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
analysis was used to evaluate the grading of the manager level employees. Where the Managing
Director, Secretary & General Managers were on the grade- I. Department Officers fall under grade II and
Assistant Managers in grade III.
We have performed basic analysis to analyze the roles and responsibilities of the employee. The
duties of the employees were Determined on the basis of skill, working conditions and staff service rules.
An essence of the Competitive Market Analysis method has been used to understand and evaluate the
hierarchy of the organization for which we have referred Punjab, Andhra Pradesh, Madhya Pradesh, and
Telangana.
Page 16 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
These rules shall come into force on such date as maybe notified by management after receipt of approval
from registrar of cooperative society, Odisha, Bhubaneshwar.
These ‘Rules’ shall apply to all categories of employees appointed to the federation service. Provided that
these rules shall not apply the persons on deputation either from the state government or otherwise to the
extent their conditions of service are regulated by the rules of state government organization to which they
belong:
The managing director of the federation or any officer authorized by him in his behalf, shall be the appointing
authority in respect of, any class-IV employees/workman and any other category of employees except
officers on deputation with “the previous approval of the managing committee”
Subject to the specific rules and orders applicable to the posts in the plants and establishments covered
under the Factories Act 1948, the posts under the Federation shall be classified into V categories as per
Schedule B, unless the Federation by any general or special orders, specifies otherwise with due approval of
the Registrar of Cooperative Societies, Odisha
Committee of Management
President
MD
Fertili er section
Accounts Audit Reconciliation
section section of accounts
Area office(
GF plant,
nos)
Bargarh(defunct)
Fertili er godown
( nos)
Page 18 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 19 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
The general management of the federation shall, subject to the control of the Managing Committee,
Executive Committee & the Chairman be vested in the Managing Director. The committee may delegate such
powers and functions or give direction to him as it may think fit for the conduct of the business of the
federation and shall control all salaried staff including the secretary and supervise their work in the day-to-
day administration of the Federation.
Page 20 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
XIII. To sanction purchase of vehicles, machineries and other fixtures required in the business of the
Federation subject to approval of the Managing committee and chairman as per budget estimate.
XIV. To prepare programme of business activities other Federation and place the same before the
Managing Committee and the General Body.
XV. To incur expenditure or allow his subordinate to incur all expenditure for purchase,
transportation charges and other expenses, required there to up to a limit to eb fixed by the
Managing Committee.
XVI. To place the annual income and expenditure statement, profit and loss A/c, Balance sheet,
Annual Administration Report etc. before the Managing Committee & the General Body.
XVII. To place the budget estimate before the Managing committee.
XVIII. To pay & satisfy debts, liabilities, claims and demands due against the Federation.
XIX. To sale or approve sale of commodities subject to the approval of the Managing Committee or
the Chairman.
XX. To appoint, suspend, remove, or dismiss or otherwise deal with the employees of the Federation
in accordance with the provision of subside to be framed by the committee and approved by the
Registrar of Cooperative Societies, Odisha.
The secretary shall be appointed by the Managing Committee with the approval of the registrar. His terms
and condition of appointment shall be determined by the government. The pay and allowances of the
secretary shall be paid by the government. The Secretary so appointed shall not be an officer below the
rank of a Deputy Registrar, Cooperative societies. The duties of Secretary as under:
I. He shall be custodian of all properties of the Federation and shall also arrange the custody of the
properties cash balance of the Federation by issuing of specific orders to the various officers and
staff appointed to assist him in the work.
II. To supervise day to day administration of the federation and to allocate and to distribute duties
among members of the staff.
III. To make disbursement and to obtain vouchers and to receive payment under the general or
special orders of the Managing Director in this behalf from time to time.
IV. To keep all accounts and registers, required under the rules.
V. To prepare all the registers, vouchers, balance sheet and other documents required for the
transaction of the business of the Federation.
VI. To conduct correspondence and to supply all needful information to the members.
VII. To place the Audit report before the Managing Director for consideration and to take further
steps in regard to ratification report to the Registrar, after placing the same in the meeting of
the committee.
VIII. To guide, supervise and control the work of the salaried staff of the Federation including branches
and do all other work which may be entrusted to him by the Managing Director.
IX. To arrange the receipt of agricultural produce and other goods in the Go down of the federation
& to be responsible for their safety.
X. To visit and inspect the affiliated societies
Page 21 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
The RCS approves a certain number of employees to be employed in an organization. Thus, presented
Figure elucidates 3 types of employment that MARKFED Odisha consists i.e., Government, regular and
outsourced employees. Government employees are deputed employees mostly of upper management.
Regular employees are mostly the managerial levelled employees and outsourced are on the contract
employees.
Outsourced
63
Page 22 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
LOCATION
Rayagarh, 1 Barapalli, 1
Kalahandi, 1 Head Office
Jeypore, 1
Balasore
Baripada, 1
Padampur
Cuttack, 1
Atthagarh, 1 Nuapada
Boudh, 1 Bargarh
Head Office Titilagarh
Titilagarh, 1 20
Boudh
Bargarh, 1
Atthagarh
Nuapada, 1
Padampur, 1 Cuttack
Balasore, 1 Baripada
Jeypore
Page 23 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 24 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 25 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 26 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
0 1 2 3 4 5 6 7 8
Page 27 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
0 1 2 3 4 5 6 7
Page 28 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ The manpower has been distributed among Head office, District and godowns. HO has a major share of
manpower availability whereas the rest of the 2 locations are facing adversity.
➢ The 3 Position are heavy burned to manage the organizations Secretary, General Manager,
Development Officer.
➢ The Secretary has been crowded with several unlinked departments like, Marketing, PSS, Civil &
Mechanical, Estate & Assets, Inspection, legal section, Establishment, PIO, and cold storages.
➢ Development Officer are managing the hole fertilization section, and godowns, plants.
➢ General Manager Finance manage the Accounts, Audit Reconciliation.
➢ Organizational structure is uneducated impact to the current structure there is no scope of future
of the employee and career growth, skill development.
➢ Area manager smooth delivery of fertilizers, maintaining records, preparing the annual budget,
verifying stock and cash etc. In essence quite diverse responsibilities
➢ Godowns manager is responsible for buffer stock, reconciliation of accounts, and supplying to the
centers however, the supply is neither consistent nor adequate to meet the targets
1. RETIRING PLANS
➢ The organization lacks in having a proper retirement planning for approx. 25 positions in upcoming
3 years.
➢ No proper promotion strategies ahead for the vacancies available due to the upcoming retirements.
➢ In the current system there is no clear strategy/policy for the fulfillment of backlog vacancies and
promoting the existing employees.
2. FIXED FUNCTIONING
➢ The job charts of Area Manager and Godown Superintendent requires field work however, the
employees were operations from the HO
➢ The Marketing department is held responsible for cold storages despite of the unrelated
functioning.
➢ Several unnecessary departments are there under the secretary which can be clubbed into a
specialized department.
3. CAPACITY BUILDING & CHANGE MANAGEMENT
➢ Through the survey conducted we have found that 80% of the employees did not receive any training
to upskill their knowledge
➢ Through the survey conducted we have found that 90% of the employees did not conduct any
training at their workplace.
➢ Despite of the trainings suggested by NCDC (National Cooperative Development Corporation) in
2018 still no TNA reports were undertaken.
Page 29 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ Ranking method: This method has provided grades for employees. Top management falls under
grade I, Department officers under grade II, and assistant manager under grade III.
➢ Factor comparison: Skills, working conditions and staff service rules taken as the basis, this method
has contributed to determining roles and responsibilities of the employees
➢ Competitive Market Analysis method: By comparing the organizational hierarchy of Punjab,
Karnataka, Andhra Pradesh and Telangana, this method has helped to understand in-depth
knowledge of hierarchy.
As per the deep analysis of Manpower of MARKFED Odisha we have found these positions are in below: -
These positions have calculated based on the list employees who will retire in upcoming 3 years.
Page 30 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 31 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 32 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 33 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Provided further that the maximum age limit can be relaxed by the appointment committee in suitable and
deserving cases. The selection list shall be valid ordinarily for one year unless otherwise recommended by
the selection committee.
Selection Committee may recommend a relaxation of upper age limit, higher initial pay, or any perks etc. to
be given to any selected person. No selection letter or appointment orders shall be issued in favor of
candidates until and unless the appointing authority accepts the recommendation of the selection committee.
The appointing authority may refer back the selection list to the committee or call for clarification.
While recruiting & promoting people, the appointing authority should ensure about “Reservation Quota” in
favour of different categories of persons as decided by the government from time to time.
Page 34 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ All posts of Grade I Asst/ Assistant Account will be filled up by promotion from amongst Grade II Asst.
Accounts Assistants.
➢ 50% of the post of Godown Managers will be filled up by promotion from amongst Grade I & Grade T.
Asst. or equivalent. The rest 50% will be filled up by open advertisement and direct recruitment.
➢ Post of Driver (Light Vehicle) will be filled up by inviting candidates from employment exchange,
cases of helpers of trucks or other Grade IV employees who possess a valid driving license and the
minimum qualification with the organization will also be considered driver (KV) will be filled up from
the Driver (LV). The post of Head Driver will be filled up from Driver (HV)
➢ Post of Junior Typist will be filled by inviting candidates from employment exchange. Cases of IV
Grade employees who are matriculated and who possess a Trade Certificate in Typing with the
organization will also be considered. Senior Typist will be filled up from amongst Junior Typists and
Head Typist from among Senior Typists.
➢ Post of III Grade Steno will be filled up by inviting candidates from employment exchange. Case of
Grade IV & III employees who possess the minimum educational qualification and trade certificate in
Stenography in the organization will also be considered Post of Grade II Steno will be filled up from
amongst Grade III and Grade I Steno amongst Grade II Steno.
➢ Post of Private Secretary will be filled up from amongst the existing Senior Stenographer by way of
selection
➢ 50% of posts in Grade II General Category will be filled up by promotion from amongst the Godown
Manager, Managerial Cadre or equivalent. The rest 50% will be filled up by open advertisement only.
These posts will be filled up by deputation/ on direct recruitment. All recruitment and promotions
at plant level will be done through Technical Trade Test, judge the level of skill acquired by an
employee as noted below:
• 50% of the post in the semi-skilled category will be filled up by promotion from amongst
workers un-category. Rest 50% will be filled up by direct recruitment.
• 50% of the posts under the skilled category will be filled up by promotion amongst the semi-
skilled category and the rest 50% will be filled up by direct recruitment.
• 50% of posts in the highly skilled category will be filled up by promotion from amongst the
skilled and the rest 50% will be filled up direct recruitment. All eligible employees of the
Federation can apply for the posts which are advertised if they possess the required
qualification and experience but are not otherwise to get the post on promotion.
Page 35 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 36 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
5.8.1. Retirement
Page 37 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ By direct recruitment,
➢ By promotion from a lower post or grade,
➢ By deputation from the State Government or GOI or any other organization.
Recruitment under (a) & (b) above shall be made by an appointment, committee to be set up by the board
for the purpose. Provided further that appointment shall be given to a dependent member of the family
of an employee/ workman who dies in the harness if he or she possesses the qualification prescribed for
a vacant post to which he or she is proposed to be appointed. In case of direct recruitment, vacancies
are to be notified to the local employment exchange and/or advertised in newspapers. Out of the
candidates sponsored by the employment exchange and directly applied the appointment
committee shall select a required number of candidates by observing various procedures as the committee
considers appropriate to follow.
Page 38 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
interviewer. To better understand the skill set of the candidate, one-on-one discussion with the
candidate must be conducted.
➢ Now, the planner needs to draw high potential profiles, performances, and grids after the process
of interviewing and assessment, out of the prospective candidates. This step includes preparing a
list of the prospective candidates with their interview results. This list would be further sent to the
Selection Committee or the immediate superior of the vacant position for their suggestions.
➢ Group meetings and discussions regarding the succession planning and finalizing, high-profiled jobs
shall be conducted as per the committee’s judgment. The rest of the positions (apart from the top
management) can be finalized with consent and suggestions of the immediate superior of the
positions.
S CCESSION PLANNING
Page 39 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Fertilizer
Shopping
distribution Godown
Complex
System
Page 40 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
6.1.3. Godowns
There are a total 144 godowns constructed under the NCDC scheme with a combined capacity of 100000 MT
and 38 godowns constructed under the RKVY scheme with a combined capacity of 30500 MT. The total
capacity available for all the existing godowns is 130500. These godowns are constructed in 30 districts of
Odisha. The data for the unused godowns is given below
Page 41 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 42 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Godow ns unused
,3 ,
Page 43 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
MARKFED is r esponsible for er ification and Inspection of DACs r eceive the Centr al Govt. r elease the
Stitching, Ow ing and tr anspor t of Goods by NAFAD manager allotment fr om the of Mar gin amount to MARKFED
the goods to theGodow nof NAFAD and validation of QR Code NAFAD & to the PACS society
Page 44 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
There are some guidelines and specifications listed down for Fair Average quality grade for the purpose of
quality check:
Some tolerance level has been specified for the produce that is to be procured by the MARKFED. The special
characteristics include foreign matter, admixture, damaged pulses, slightly damaged pulses, immature and
shriveled pulses, weevil led pulses and moisture. The maximum tolerance level has been provided below:
1. Foreign matter 2
2. Admixture 3
3. Damaged pulses 3
4. Slightly damaged pulses 4
5. Immature and shriveled 3
6. Weevilled pulses 4
7. Moisture 12
Page 45 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
14000.000
12000.000
10000.000
8000.000
6000.000
4000.000
2000.000
0.000
Target Achieved Target Achieved Target Achieved
2019 2020 2021
Groundnut pods Sunflower seeds Green gram (Mung) Black gram (Urad)
Page 46 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Godow n Manager Raises the Ar ea Manager submits the ead Office Contacts to empaneled
r equir ement for the fer tili er Requir ement of Fer tili er to Manufactur er and dealer s
ead Office
350000 79%
78%
300000
77%
250000
76%
200000 75%
150000 74%
73%
100000
72%
50000
71%
0 70%
2018-19 2018-19 2019-20 2019-20 2020-21 2020-21
Target Achievement 300000 60000 310000 65000 310000 65000
Achievement 76% 74% 78% 73% 78% 75%
there was inventory movement of 58 types of fertilizers spread across 17 godowns located in 7
districts from the period of 1st Apr 2021 to 15th Aug 2021.
➢ 95% of the total stock have been sold off in the span of 3.5 months
➢ 11 out of 58 types of fertilizers make up 96% of the total stock as demonstrated below
Page 48 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ Nabarangpur, Ganjam, Koraput and Keonjhar districts hold 80% of the total stock.
➢ Nabarangpur, Jeypore and Jagannathpur Godowns hold 52% of the stock of the 11 fertilizers mentioned
above.
➢ Anandapur Depot, Keonjhar and Bhubaneswar Godown in Khordha district has the lowest volume of
fertilizers in comparison to other godowns.
➢ All godowns in Keonjhar district, Anandapur Depot, Champua Depot and Keonjhar Buffer showed
the highest sales volume for DAP-IFFCO fertilizer.
➢ Highest sales volume seen for Urea-IFFCO-NC fertilizer in Koraput District and Ganjam district
(Bhanjanagar Buffer and Jagannathpur Buffer)
➢ Highest sales volume seen for Urea-IPL in Khordha district
➢ Godowns in Nabarangpur showed highest sales for MOP-IPL except for Umerkote Buffer that sold
Urea-NFL fertilizer the most.
➢ Highest sales volume seen for IFFCO 20:20:0:13 in Malkangiri district.
Page 49 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 50 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Figure 34 District wise total stock v/s Closing Balance (Value in MT)
Page 51 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Man Method
B A Low Revenue
nutili ed Godwons and Land Lack of Diversified and additional product
and services offerings
Machinery Management
MARKFED Odisha doesn’t have a proper inventory management system. There is no record of inventory in the
digital system which contributes to further inefficiencies in the whole process. The whole system as of now
is manual. Absence of an inventory management system causes problems like shortage of fertilizers, which
forces the farmers to purchase fertilizers from the private players at a higher price.
MARKFED Odisha lacks the proper demand forecasting system for the fulfillment of fertili er’s demand.
Currently, the quantity of fertilizers to be ordered is decided on the basis of past experience of the
employees. The absence of a demand forecasting method could cause the problem of shortage/surplus of
fertilizers which would ultimately impact the profitability.
Fertilizers: If we discuss the primary business of MARKFED Odisha which is fertilizers, there is no automation
at any part of the process, from procurement of fertilizer till the distribution. When the fertilizer is
transported through the freight car to the warehouse of MARKFED, there is no tracking of the freight car.
There is no coordination between the manufacturer and MARKFED, as MARKFED isn’t aware about the
quantity that is being shipped to them for delivery. They only get to know that once the fertilizers arrive and
are delivered to them.
Price Support System (PSS): The complete process of PSS procurement is currently manual except for the
entry that is being done manually on the E-samriddhi portal. There is no method of automating the process
with a system as of now, which could potentially streamline the process and reduce the lead time.
MARKFED primary business is sale of fertilizers and secondary business is procurement of agricultural
produce under MSP on behalf of the government upon which they receive a commission. If we compare the
situation of MARKFED Odisha with other states, we understand that MARKFED isn’t offering enough products
and services and their assets remain unutilized.
MARKFED has a huge unutilized capacity and there is no mechanism to generate revenue from those unutilized
assets as of now.
Page 53 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
1. Infrastructure
❖ MARKFED owns different kinds of assets such as godowns, plants, cold storage, and Land etc. and such
assets are not operating at full capacity for agricultural related activities
❖ There is total 144 godowns constructed under the NCDC scheme with the combined capacity of 100000
MT and 38 godowns constructed under the RKVY scheme with a combined capacity of 30500 MT
❖ Several godowns at MARKFED are either completely unutilized or have an unused capacity owing to
different reasons. 42% of the unused go downs are completely idle. 5% of the go downs are in broken
condition. 8% of the godowns are dysfunctional.
2. Inventory Analysis:
❖ From the 1st of April 2021 to the 15th of August 2021, there was inventory movement of 58 kinds of
fertilisers dispersed over 17 Godowns situated in 7 districts
❖ 11 of the 58 fertiliser types of account for 96% of the entire stock
❖ Jatani Buffer, Khordha has the highest share of the unsold lot. Observed 30% of the total stock in the
closing balance
❖ There is shortage of cash in hand for working capital
❖ There is no proper inventory management system & record of inventory in the digital systems
❖ There is no proper demand forecasting method/technique such as trend analysis or time series
❖ There is absence of an automation system or ERP software which leads to lower transparency and
❖ MARKFED is lagging behind in achieving the targets for procurement of groundnut pods, sunflower
seeds green gram and black gram under the Price Support Scheme, for the past 3 years
Page 54 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
❖ MARKFED to increase the fertilizer sale volume, can look forward for new association / relationship with
the Cooperative societies which is not is existence as on date with the following study.
❖ Division wise/District Wise/Sub-district wise/ Tehsils & blocks Cooperative Societies in existence
❖ Number of Cooperative Societies where MARKFED has association/relationship for fertilizer sale in the
Division wise/District Wise/Sub-district wise/ Tehsils & blocks
❖ Number of Cooperative Societies where MARKFED do not have association/relationship in the Division
wise/District Wise/Sub-district wise/ Tehsils & blocks with reason/root cause
❖ Sale volume of such respective Cooperative Societies along with the % sale share in total volume in
those Division wise/District Wise/Sub-district wise/ Tehsils & blocks
❖ Paddy, oil seeds, pulses, other agricultural produces like Green gram (Moong), Groundnut pods and
Sunflower seeds etc, directly from the farmers from the Mandis under the District Administration at
Minimum Support Price (MSP) to protect the interest of the farmers. In order to increase the purchase
volume, MARKFED need to analyse the number of Mandis under the District Administration remain
unattended for the following:
o Volume of respective Mandi under the District Administration for the item
o Reason/root cause for not attending the Mandi along with the appropriate action plan
o Devising strategy for procurement share in those Mandi at MSP
o In order to increase the purchase volume, MARKFED need to analyse the following for the Mandis
attended under the District Administration.
o Total Volume/Yield forecasted for respective Mandi under the District Administration for the items
o Total actual volume/yield originated in that respective Mandi for the items
o Total procurement at MSP by MARKFED out of actual volume/yield from farmer of the respective
Mandi
o Total volume yield procured by “Other” at a price greater than MSP from farmers in that respective
Mandi
o Total volume yield procured by “Others” at a price equal to MSP or less than MSP, where MARKFED
has to ascertain the reason and root cause along with action plan to devise a strategy to target
such volume for increase in the procurement volume
Page 55 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 56 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Demand can easily be estimated from historical patterns or by using certain demand forecasting
methods such as Time Series Analysis and projection or Trend analysis
❖ Warehouse management system (WMS):
A warehouse management system (WMS) is designed to assist guarantee that goods and resources are
moved through warehouses in the most efficient and cost-effective manner possible.
❖ Remodel storage and supply:
The warehousing can be divided into a 3-tier model with a central distribution system in Bhubaneswar,
3 level 2 distribution centres in each direction and the base level supply through retail distributors.
❖ Performance measurement in the entire process:
In the entire process there is no parameter to measure the success ratio or work efficiency of processes.
Introducing robust performance measure metrics help to determine whether the process was successful
or not.
Envisages to develop an MAKFED ECO System is to represent all the Products & services of MARKFED
Department in place. MARKFED System platform introduces with integrated information management
system for automation of agriculture value chain analysis by leveraging ICT to streamline, improve upon
their functioning in order to bring efficiency, transparency, and accountability in their operations and faster
delivery of services to its stakeholders
Agribusiness, supply chain management (SCM) implies managing the relationships between the businesses
responsible for the efficient production and supply of products from the farm level to the consumers to meet
consumers’ requirements reliably in terms of quantity, quality, and price. In practice, this often includes the
management of both horizontal and vertical alliances and the relationships and processes between firms.
➢ Procurement or sourcing
➢ Logistic management
❖ Transportation
❖ Material management
❖ On the premise of supplying mostly from production does not stock
❖ Warehousing
❖ Logistics Network modelling
➢ Organizational management
❖ Contracting
❖ Strategic alliances and partnerships
❖ Vertical integration
o Long term storage
o Packaging technology
o Cold chain management
o Energy efficient transport
o Quality and safety
Page 58 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Distribution of chemical fertili er to the farmers of MARKFED is through the Cooperative Societies under ‘B’
component and private dealers /retailers having valid fertilizer license. To increase the sale volume of
fertilizer, MARKFED need to increase the base/association with the private dealers/retailers in them
divisions/district/sub-district/Tehsils & blocks through the following study
3. Loan Facility
The farmers avail agriculture loan from Primary Agricultural Credit Society (PACS)/ Large-sized Adivasi
Multipurpose Cooperative Society (LAMP). In order to increase the sale volume of fertilizer by Cooperative
Societies under “B” component, the MARKFED need to study the following in order to suggest the government
to include a rider while providing loan to farmer from PACS/LAMP for availing the input of fertilizer form the
➢ Division wise/District Wise/Sub-district wise/ Tehsils & blocks PACS/LAMP agriculture loan provided to
number of farmers
➢ Number of farmers who obtained PACS/LAMP agriculture loan and procured fertilizer input from the
➢ Number of farmers who obtained PACS/LAMP agriculture loan and have not procured fertilizer input from
the Cooperative Societies under MARKFED along with the type of fertilizer, total quantity along with its %,
to understand the sale lost by MARKFED due to absence of rider in the PACS/LAMP agriculture loan on farmer
Target quantity and its percentage for sale of fertilizer need to be agreed by MARKFED with the
Cooperative Societies. MARKFED need to evaluate reason/root cause by discussion with the respective
Cooperative Society, for actual sale greater than target/actual sale lower than target/actual sale equal to
target. Where the sale was lower of respective Cooperative society than the target, MARKFED need to
design an action plan with analysis of bottleneck which has led such non-achievement of target by
Page 59 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ Further, where the fertilizer sale by a respective cooperative society was greater than the target/equal to
target, MARKFED can look into increasing their target, so that the sale volume can be further increased.
Moreover, MARKFED can agreed upon with the respective cooperative society minimum % of fertilizer lifting,
MARKFED to increase the fertilizer sale volume, can look forward for new association / relationship with
the Cooperative societies which is not is existence as on date with the following study.
➢ Division wise/District Wise/Sub-district wise/ Tehsils & blocks Cooperative Societies in existence
➢ Number of Cooperative Societies where MARKFED has association/relationship for fertilizer sale in the
➢ Number of Cooperative Societies where MARKFED do not have association/relationship in the Division
➢ Sale volume of such respective Cooperative Societies along with the % sale share in total volume in those
Strengthening the process of receivable collection within defined credit limit, which shall enhance the
debtor velocity and working capital. The monitoring mechanism need to be devised with the following
analysis:
➢ Collection due date dashboard invoice wise in accordance with the credit limit in terms of days allowed
➢ Proper follow-up on the before/near to due date for the amount due from the respective debtor for its
timely collectability
➢ Delay (in days) to computed where the collection was over and above the credit limit in terms of day in
order to evaluate the reason/root cause for such delays along with the action plan for future, in order to
mitigate such delays. The delay dashboard needs to be submitted to appropriate authority for review and
discussion
Page 60 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ Debtor wise aging need to be prepared for amount outstanding over and above the credit period along with
the prospective collectability date for amount which is collectable. In case, the amount is not collectable
for long duration, reason/root cause need in documented for appropriate action plan
Paddy, oil seeds, pulses, other agricultural produces like green gram (Moong), Groundnut pods and
Sunflower seeds etc., directly from the farmers from the Mandis under the District Administration at
Minimum Support Price (MSP) to protect the interest of the farmers. In order to increase the purchase
volume, MARKFED need to analyze the number of Mandis under the District Administration remain
➢ Volume of respective Mandi under the District Administration for the item
➢ Reason/root cause for not attending the Mandi along with the appropriate action plan
In order to increase the purchase volume, MARKFED need to analyze the following for the Mandis attended
➢ Total Volume/Yield forecasted for respective Mandi under the District Administration for the items
➢ Total actual volume/yield originated in that respective Mandi for the items
➢ Total procurement at MSP by MARKFED out of actual volume/yield from farmer of the respective Mandi
➢ Total volume yield procured by “Other” at a price greater than MSP from farmers in that respective Mandi
➢ Total volume yield procured by “Others” at a price equal to MSP or less than MSP, where MARKFED has to
ascertain the reason and root cause along with action plan to devise a strategy to target such volume for
MARKFED need to study the storage capacity of each of its owned / hired godowns through volumetric
assessment for different category of items. Actual storage of items against the benchmark capacity, need to
be monitored for idle capacity and its materiality for each of its owned/hired godowns to ascertain the loss
of capacity utilization, incurrence of high utility/manpower cost even though the capacity utilization of the
respective godowns was low. Further, it shall also avoid taking of godowns on hire even though the capacity
Page 61 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
MARKFED can strengthen the process of warehouse operation through the following:
➢ Define the process of physical verification along with its frequency to ascertain the physical stock in
existence along with recorded in books of accounts. Reason/root cause for excess/shortage stock with
➢ Proper storage and stacking of items in the warehouse, to utilize the capacity properly and avoid loss of
items from the packets due to improper stacking, wear, and tear etc.
➢ Timely pest control in the warehouse to avoid insects, rats etc. spoiling the items in the packet, which may
➢ Weight reconciliation has to be performed at the respective warehouse for the receipt i.e., Tonnage loaded
in truck at loading point/procurement point vs received at godowns. In case of procurement of items (Paddy,
➢ Aged inventories need to be analyzed for reason/root cause of its lying-in godowns along with appropriate
➢ Insurance to be taken timely by MARKED in accordance with the stock level, in order to avoid risk of any
Strengthening the process of proper logistic planning and scheduling to avoid cost incurrence due to dead
freight. MARKFED has to analyze the total truck wise load capacity vs actual tonnage load. In case actual
load for the truck was lower than the truck load capacity, though the payout was for the total truck load
capacity, then reason/root cause need to be ascertained for optimization of truck load capacity and saving
12. Monitoring the TAT (Turn Around Time) of delivery by the transporter
MARKED need to strengthening the process of monitoring the TAT of delivery by the transporter. The delay
in delivery by the transporter need to be analyzed, in order to ascertain whether such delay has led to loss
of sale/revenue. Further, action need to be taken against such transporter along with appropriate
The demand estimation process is out of tune. Estimation is carried out each year exclusively by MARKFED,
District Agricultural officer, smaller societies without including the primary stakeholders i.e., farmers.
Page 62 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Estimating demand every year leads to a lot of data generation, rather the demand can easily be estimated
from historical usage patterns or by using certain demand forecasting methods such as Time Series Analysis
and projection or Trend analysis. An entire team taking care of demand can also be employed as entire
revenue generation is based on the right amount of estimation of demand.
➢ Forecast inaccuracies are minimized as a result of demand aggregation and consensus building.
Lower forecast errors lead to a more consistent supply chain with fewer fluctuations.
➢ Customer service metrics such as on-time delivery (OTD), on-time in-full (OTIF), case-fill/fill-rate,
and others are enhanced as a result of proper size and positioning of inventory.
➢ Bullwhip effect decreases in the supply chain: As demand varies less, the accuracy of procurement,
production, and distribution plans improves, reducing the Bullwhip impact across the supply chain.
➢ Cost savings and productivity gains: Centralized demand planning needs fewer resources and results
in reduced inventory levels throughout the supply chain, resulting in cost savings and productivity
gains.
An effective logistics management plan that is proactive and well-defined may help establish stronger customer
connections, increase supply chain dependability, and reduce the need for extra inventory.
Along with lowering delivery times and mistakes, there are a few other aspects of the supply chain that may
be improved.
Most of the warehouse managers complained about not receiving the stock in time and in sufficient quantities.
The movement from the source to the location needs to be tracked and quantity at the point of loading and at
the point of unloading need to be tallied. There are two major options that we suggest.
➢ Outsourcing using PPP model: Outsourcing the entire supply to 3rd party logistics would allow
MARKFED administration to focus more on sales and revenue generation, since supply is a cost
intensive process.
➢ Moving from trains to trucks: Road transport is more efficient in a holistic sense, as rail transport
is limited by infrastructure, and it would mean dropping the stock at the nearest railway station and
then transporting it using a vehicle to the go down. It would be more beneficial to shift the entire
supply line to road transport than rail transport.
Page 63 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
The entire storage system is highly inefficient leading to contradictory problems such as high unused
space as well as no stocking space. Entire process needs to be revamped. The warehousing can be
divided into a 3-tier model with a central distribution system in Bhubaneswar, 3 level 2 distribution
centers in each direction and the base level supply through retail distributors.
Use decision modelling techniques to identify the best possible locations to select for level 2
warehouses based on the optimum routing which would ensure minimal fuel and manpower
requirements as well as on-time delivery to avoid stock outing.
This would ensure better planning of supply routes, improved traceability and reducing the opaqueness
of the supply chain visibility.
3
Retail distributors will collect or be
supplied with the stock along with other
smaller go downs belonging to
MARKFED. This will be the consumer
contact point for buying
Page 64 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Deploy a warehouse management system at all the godowns controlled by a central warehouse in
Bhubaneswar. Warehouses are at the heart of industrial and supply chain activities because they
contain everything from raw materials to completed items. A warehouse management system (WMS) is
designed to assist guarantee that goods and resources are moved through warehouses in the most
efficient and cost-effective manner possible. Many tasks that enable these transfers are handled by a
WMS, including inventory tracking, picking, receiving, and put away.
A WMS also gives a company visibility over its inventory at any time and in any location, whether in a
facility or in transit.
The WMS will help keep track of inventory and automate ordering as well as improve the inter-
warehouse positioning of goods based on “Fast moving” and “slow moving” goods.
Warehouse Management
ERP
Accounting
Invoicing
Order management
Inventory management
Shipment
Or der s, Or der s,
Inventor y infor mation
Inventor y Items and
pdates, (tr acking number ,
Synchr oni ation Customer
or der status car r ier , location,
r epor ts Infor mation cost, etc.)
Page 65 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
In the entire process there is no parameter to measure the success ration or work efficiency of
processes. Introducing robust performance measure metrics to determine whether the process was
successful or not.
A supply chain performance metric is a method for evaluating the efficiency of a supply chain system.
Measures of supply chain performance may be divided into two groups.
➢ Qualitative measures: Customer satisfaction and product quality are examples of qualitative
measurements.
➢ Quantitative measures: Order-to-delivery lead time, supply chain reaction time, flexibility,
resource utilization, and delivery performance are examples of quantitative measurements.
Measuring quality without the implementation of quantitative measures is very difficult and would not
be a good judgement, thus implementation of quantitative measures is what should be done on a
priority basis.
Although the measurements used to evaluate performance are often identical, the goals of each section
are vastly different.
Quantitative measurements are assessments that are used to evaluate, compare, and track
performance of goods. The quantitative measurements of supply chain performance may be further
divided into two categories.
I. Non-financial measures
✓ Supply chain lead time
✓ Order to delivery lead time
✓ Order fill rate
✓ Stockout rate
✓ Backorder rate
✓ Probability of on time delivery
✓ Raw material tracking
✓ Work in progress inventory tracking
✓ Finished goods inventory tracking
✓ Ancillary requirements
✓ Resource utilization metrics
II. Financial measures
✓ Cost of raw materials.
✓ Revenue from goods sold.
✓ Activity-based costs like the material handling, manufacturing, assembling rates etc.
✓ Inventory holding costs.
✓ Transportation costs.
✓ Cost of expired perishable goods.
✓ Penalties for incorrectly filled or late orders delivered to customers.
✓ Credits for incorrectly filled or late deliveries from suppliers.
✓ Cost of goods returned by customers.
✓ Credits for goods returned to suppliers
Page 66 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
o In the past 1 or 2 years, only 7out of 64 people have attended any kind of training. In other words,
approx. of people haven’t been through any training or program
o In the past 1 or 2 years, 3 out of 58 people have provided any training to anyone. Approx. 90% people
have not given any training to anyone
o The smallest share of 17.2% of the employees rates themselves under expert category in basic
computer knowledge, 54.7% employees under average and 28.1% in beginners.
Page 67 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ Training modules:
BDO has come up with various training modules for several departments which are:
1. Engineering
2. Accounts
Page 68 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
5. Procurement
6. Audit
These modules state the requirement of training in the designations of the above-stated departments, the
kinds of training required, and the skills training will provide.
S. No Training
1 Engineering
Designation Training Required Competencies
Refrigeration Engineer, Civil Engineering Aspects, Mentoring Engineering Aspect, Team
Assistant Refrigeration Skills, Coordination Skills, Plant Building, Leadership Skills,
Engineer, Chief System Management Skills, Documentation, DPR Supervisory Skills
Analyst, Deputy Manager (IT),
Control Room Assistant, Data
Entry Manager
2 Accounts
Designation Training Required Competencies
Financial Advisor- Cum CAO Basic Accounting Procedure, SAP, Tally, Accounting Software,
(HO), Chief Accounting Consolidation of Accounts, PF/ESI & Accounting Skills, Team
Officer (HO), Assistant Related Aspects, Financial Procedures, Building, Supervisory Skills
Accountant Tax Filling & GST, Team Building.
Page 69 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
5 Procurement
Designation Training Required Competencies
General Manager Documentation of Progress & Tender Procurement
(Procurement), Procurement guidelines, Sales account related to Management, Business
Officer. fertilizers and procurement, Tender Development skills,
Guidelines, Project Management Tools to Communication skills,
minimize time and cost in procurement Fertilizer aspects.
and distribution, Negotiation & Liaison
skills for interacting with manufacturers/
contractors, Procurement and fertilizer
management, Preparation of DPRs, Legal
Documentation of work agreement with
the contractors, Basic legal Procedures.
6 Audit
Designation Training Required Competencies
Divisional Accounting officer Systematic Accounting Procedure, Basic Accounting Skills,
(HO), General Manager Accounting Procedure, Legal Administration
(Legal), Auditors. Documentation of work agreement with Competency, Supervisory
contractors, Statutory and interval Skills, Team Building.
audit, Consolidation of Accounts, Basic
legal procedure, RTI and basic legal
procedures, Examining and Approving
claims
Page 70 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
All employees/ workmen of the Federation are liable to undergo such, training for such period, and
undertake such examinations as may be prescribed by the appointing authority from time to time.
Page 71 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
IT ENABLEMENT
Faced with Globalization, greater product complexity, and growing consumer demands, businesses are
using modern technology to convert their supply chain from a purely operational hub to a hub of
business innovation.
Forward-thinking firms are gathering data at every stage, from the state of raw materials flow through
the condition and placement of completed items, using sensors and ever-improving internet access.
Machine learning, artificial intelligence (AI), and advanced analytics aid automation and provide
insights that improve efficiency, such as making on-the-fly route modifications to speed up product
delivery or changing out materials to take advantage of better cost or availability.
Advanced technologies which would help improve the overall efficiency for MARKFED:
➢ Traceability through Blockchain: Blockchain would help in better tracking the products and
pallets in the supply chain as they move from one ownership to another and at the same time
ensure the safety of the consignment as well:
➢ Barcode/ RFID: Loading and unloading verification can be done through barcodes, delivery
assurance can be verified using barcodes. Barcodes can be an integral part of the overall
technological environment in the supply chain if they are used accordingly. Warehouse managers
utilize barcode label printers to produce product labels, shipping labels, and bin labels. These
Page 72 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
gadgets are simple to use and inexpensive, and they assist businesses improve management and
data accessibility while also increasing productivity.
➢ Geographical Information System: GIS based Agro marketing is a decision-based support system
to be develop specifically to plan marketing strategy Application can be develop on GIS software's
like Arch info, ArcView, etc.
➢ GIS based Supply Chain Management: The ultimate benefits of implementing GIS in Agro
enterprises would consist in improving restocking capabilities. Calculating current and prospective
demand for a product that has to be delivered to a specific place would be the strategy.
➢ It can also help to reduce the number of losses incurred when stuff is kept in the wrong place too
long. A more efficient distribution network would shorten product life cycles, allowing for larger
asset investments and a faster return on investment, as well as better resource accountability and
allocation. It will improve the ability to match available resources to precise delivery needs at
certain times and locations.
➢ Connected Farms: Data collection with sensor deployments, drone flights, and farm equipment
➢ AI-based Advisory: Real-time, actionable insights based on the ground conditions combined with
remote sensing and weather patterns.
➢ Precision Farming: Irrigation, Fertilizing, Weeding and Spraying applications
Page 73 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Page 74 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
SUMMARY
MARKFED is facing inadequacy in terms of manpower from the perspective of various functions. Currently there
is no HR, Legal, Quality Control cell which would be required to ensure sustainable operations. manpower gap
needs to be fulfilled which may require consideration on various retirals and new requirements. considering
the bye laws and RCS staffing pattern accordingly, roles and responsibilities, skillset requirements, modes of
recruitment / staffing have been suggested.
In the capacity assessment survey, we have collected the basic information about the training/ upskilling and
IT knowledge. After the assessment we have found that only 11% of staff have attended skilling/ training in
the last 2 years. And only 17.2% of the employees rates themselves under expert category in basic computer
knowledge, 54.7% employees under average and 28.1% in beginners. The capacity building and up skilling will
be highly advised in the era of digitalization.
MARKFED owns different kinds of assets such as godowns, plants, cold storage, lands etc. with the infrastructure
capacity and utilization analysis we have noticed that most of the assets are underutilized. To understand the
process inefficiencies, we have analysed asset of MARKFED with the help of the primary research data and
secondary research we found the bottlenecks in the existing asset management system of MARKFED and
consequently provided the recommendations.
In the current system of PSS operations, there is a huge gap between the target set by the Government and
target achieved by MARKFED. To understand the GAP we have performed a high level of role mapping analysis
and found that the dependency is on the individuals and mostly manually operated. To increase the efficiency
and performance of current PSS operation an automated system, and human resource gap should be fulfilled
based on the detailed study report.
In the fertilizer sales, a monitoring mechanism need to design for the subsequent target achievement,
inventory management and effective supply chain management to minimize the turnaround time. With the
Centralized demand management can be implemented to forecast inaccuracies and improve the overall supply
chain system. It could potentially save costs as it needs fewer resources and is quite effective.
To address various aspects mentioned above, interventions in the areas of proposed organisation structure,
Technology and processes as suggested in this study can be further quantified through detailed study and
accordingly implementation plan shall be prepared to achieve the desired outcomes.
Page 75 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Our Good
MARKFED Practices
Gujrat Approach
MARKFED
Tamil Nadu
MARKFED
Kerela
MARKFED
Punjab
10.1. Punjab
➢ Punjab MARKFED is the sole supplier for fertilizer in the state which has resulted into humongous
revenues and propelled them to the largest marketing co-operative in Asia.
➢ It also has a fleet of 90 combine harvester vehicles which are lent to farmers during the harvest
season on a rented basis.
➢ MARKFED Punjab produces their own fertilizers to reduce the cost of fertilizer procurement.
➢ They have started an entire brand of products under the brand name “SO NA”. They sell products
such as vanaspati oils, cotton, water, oats, oilseeds, cattle feeder, tea etc. SOHNA is an
international brand with distributors in the Middle East and North America.
➢ Recently they have started producing and processing honey as well as started a canneries plant to
produce ready to eat foods and wellness products. In the same year, MARKFED was awarded the
Skoch Gold Award on Implementation of Bar Code Technology for Honey Procurement.
➢ MARKFED Punjab has made a retail brand out of its name, and it leverages its sub brand “SO NA”
to operate multiple supermarkets and kiosks all around Punjab and some in other states as well.
➢ MARKFED Punjab produces cattle feed from the farm remains and sells it to poultry and dairy
industries around the country
➢ They have also set up a soil testing laboratory under their name to help farmers get their solid
tested and add fertilizer accordingly, which has increased customer satisfaction.
➢ MARKFED is selling SOHNA products through big basket in Chandigarh tri-city & Delhi and is also
selling its products through e-commerce sites like Bhejo, Swadeshi Dukan etc.
➢ They also indulge in charitable activities by constructing homes for deaf and blind children. They
have also built a museum in the village of Shaheed Bhagat Singh to commemorate him.
Page 76 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
➢ 110 MARKFED booths were planned out of which 66 have been established and the sales have
already been started along with Verka & establishing new Atta mills.
➢ Products are being sold on e-commerce sites
➢ Marketing is being done through social media as well.
➢ Display of glow signboards on the highway, print media marketing & radio campaigning is being
performed.
➢ Has participated in Trade fair, New Delhi.
➢ Video commercial advertisements are also prevailing
➢ Is processing to appoint distribution across India
10.2. Kerala
➢ Distribution of fertilizers and chemicals
➢ Procurement, sale and export of spices and nuts
➢ Since 2014 supplying coconut to Mata Vaishno Devi, Jammu & Mother Dairy (Delhi)
➢ A new line of business ‘Seasoning’ is targeting international markets and tourists
➢ Construction of Godowns
➢ Planning to set up oil mills, fertilizer mixing units & retail trade
10.4. Gujrat
➢ The product range of fertilizers, seeds, pesticides, coarse grains, storage & warehouse, and
packaging & sale of goods.
Page 77 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Department- Legal
o Analyse and provide advice related to MOUs, tender documents, and Contracts.
o Analyse open cases and provide insights to the management as per the situation.
o Coordinate with departments to ensure, legal risks have been discovered and appropriate measures
have been taken to curb them.
o Ensure legal protection and provide risk management advice to management.
o Provide and derive meaningful insights on legal information, conduct training and disperse legal
requirements to the concerned staff.
o Handle all the employment related issues and labour relations.
o Undertake managerial grievances and conduct counselling along with stakeholders
Requirements
o The candidate must be a BA LLB and have valid certification on labour laws.
o Experience of 8-10 Years is a must (preferably in agriculture).
o The candidate must possess experience in the field of internal/external auditing, process re-
engineering, reviewing, risk management.
o Proficiency in MS Office, Analytical Software.
o Excellent communication and analytical skills and can and handle confidential information.
o Confident in public speaking/debates.
Department: Legal
o Maintaining good relations with unions and ensuring the organization has a consistent behaviour
towards the employees and to resolve complex industrial relation situations whenever arises and
maintain all the required documents.
o Advise GENERAL MANAGER (HR) to regularly check on the outsourced workers for worker satisfaction.
o Mediate the information about labour laws to agricultural practices
o Analyse open cases and provide insights to the management as per the situation.
o Ensure legal protection and provide risk management advice to management.
Page 78 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
o Provide and derive meaningful insights on legal information, conduct training and disperse legal
requirements to the concerned staff.
Requirements
o The candidate must be a BA LLB and have valid certification on labour laws.
o Experience of 5-7 Years is a must (preferably in agriculture).
o The candidate must possess experience in the field of internal/external auditing, process re-
engineering, reviewing, risk management.
o Proficiency in MS Office, Analytical Software.
o Confident in public speaking/debates.
Department: Legal
o Analyse and provide advice related to MOUs, tender documents, and Contracts.
o Analyse open cases and provide insights to the management as per the situation.
o Coordinate with departments to ensure, legal risks have been discovered and appropriate measures
have been taken to curb them.
o Ensure legal protection and provide risk management advice to management.
o Provide and derive meaningful insights on legal information, conduct training and disperse legal
requirements to the concerned staff.
o Provide legal counselling to each department regarding the corporate laws concerning their project.
o Assist farmers in understanding their rights through conducting workshops & trainings.
Requirements
o The candidate must be a BA LLB and have valid certification on labour laws.
o Experience of 3-4 Years is a must (preferably in agriculture).
o The candidate must possess experience in the field of internal/external auditing, process re-
engineering, reviewing, risk management.
o Proficiency in MS Office, Analytical Software.
o Confident in public speaking/debates.
Page 79 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Department: Operations
Requirements
Department- E & A
o Undertake management of assets, equipment and technologies and ensure return on investment using
current technology.
o Supervise site manager in order to maintain and improve the facility to the highest standards.
o Ensuring manpower availability to achieve business and career development goals.
o Provide latest technologies to godowns and cold storages.
o Responsible for strategic upgradation of site assets for sustainability.
Page 80 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Requirements
o The person must possess Mechanical engineering, Industrial Engineering, Agricultural science
engineering, electrical engineer.
o Experience of 5-7 years in relevant field.
o Capable of solving complex engineering issues.
o Implementation of new strategies for reduction of waste of resources.
o Excellent knowledge of MS Office and analytical software.
Department- IT
o To coordinate and regulate the plan, advancement, and execution of the IT procedures.
o To administer and keep a got IT stage for the whole IT tasks guaranteeing proper controls are
executed and kept up with to required guidelines.
o Key IT undertaking and budgeting and great correspondence capacities to recognize & catch the
opportunity, and drive change.
o Ensure compelling IT preparation and reliable employee onboarding measures for all new MARKFED
joiners.
o Maintain setups of all PC frameworks as per set up guidelines (Follow characterized Computer KPI's).
o Ensure that staffs utilize IT gear and frameworks
o Promote a money-saving advantage cognizant culture with respect to interest in IT, guarantee
permeability of IT consumption and resources.
o Responsible for development, audit, and accreditation of all backup and disaster management
methodology and plans.
o Ensure security of IT resources from outer just as inner stakeholders.
Requirements.
o The person should have a diploma/ degree in the field of B.Tech/computer science/ IT.
o This person must possess 5- 6 years of progressive experience in the field of IT.
o Knowledge of Agriculture Domain/ Industry would be an advantage.
o Favourable Candidate must possess good communication, leadership, and coaching/mentoring skills.
o Independent Worker & High personal responsibility.
Page 81 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Department- HR
Requirements-
o Must be graduate in must have diploma/ degree in personnel management/ organizational behaviour/
HR/relevant field.
o 5-7 Years of Experience in the field of operations & human resources management.
o The candidate must possess well developed, communication, leadership, and coaching skills.
o Excellent knowledge of HR systems and processes.
o Excellent knowledge of MS Office and analytical software.
Department: Engineering
Page 82 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
o Communicate with various stakeholders in order to manage, design and maintain the projects
Requirements
o Certification in Refrigeration/cold storage/ Air Conditioning/ Heat Pump System from a certified
institute.
o Experience of 5-6 years in civil engineering with cold storages and agriculture background would be
preferred.
o Ability to prepare technical plans by giving sharp attention to details.
o Open to receiving feedback regarding current performance and seeks to improve.
o Excellent communication skills and leadership quality.
Department: F & A
Reporting Manager: MD
Page 83 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Department: F & A
Requirements
Department- Audit
Page 84 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Requirement
o The candidate must be a qualified accountant/ auditor.
o The candidate must be a postgraduate.
o Experience of 4-7 Years is a must.
o The candidate must possess experience in the field of internal/external auditing, process re-
engineering, reviewing, risk management.
o Proficiency in MS Office, Analytical Software.
o Excellent communication and analytical skills.
Department- Accounts
o Compile and evaluate financial data to create financial statements, such as monthly and annual
financial statements.
o Ascertain those financial records are kept in accordance with established rules and procedures.
o Prepare individual, trust, partnership, and corporate income tax returns.
o Ensure finalization of year-end accounts.
o Preparing year-end work papers, which include different reconciliations such as, GST reconciliation,
income tax reconciliation, ATO liabilities reconciliation, debtors’ reconciliation, and bank
reconciliation.
o Knowledge of the Microsoft Office suite as well as certain accounting applications.
o All additional reporting requirements, such as quarterly forecasts and other reporting as needed by
management.
o Ensure that all receivables are recovered on time, including PPA revenue billing.
o Manage all direct and indirect taxation issues for the whole group.
Requirements
Page 85 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
Department: Development
Reporting Manager: MD
o Negotiate contracts with suppliers and customers and establish a better relationship.
o Connecting with prospective clients and get regular feedback to establish a satisfactory service.
Establishing relationships with new and existing customers by generating ways to satisfy customer needs
cost-effectively.
o Implement new technology and stay alert to new trends and development in the sector. To oversee
delivery and purchase process & use relevant software.
o To advise Secretary for purchasing trending products/ inputs with quality and cost-efficiency. Check
quality reports of the products submitted by the Quality Department quarterly.
o Promote research and development and provide sufficient supplies for smooth functioning. Keeping a
record of inventory needed and purchased in advance, inventory sold out and buffer stock.
o Analyze and produce constant reports on the profitability of cold storage and include current trending
products and methods.
Requirements
Page 86 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
o Conduct a routine & non-routine analysis of the process and check the samples of seeds and crops for
quality assurance.
o Analyse and prepare reports about critical customer needs and how to meet them.
o Inspecting the returned product, analysing the defect and make a report and check for customer
complaints regarding the quality and solve them.
o Prepare reports for analysis and evaluation and submit them to the Development Officer.
o Contribute to New Product Development by coordinating with R&D dept.
o Conduct and supervise Quality Control Training annually to keep the staff updated.
Requirements
o To overlook into renovation/construction/repairing work taken up by MARKFED in his area and report
the shortfall if any, to the HO.
o Contribute to New Product Development by coordinating with R&D dept
o Analyse customer needs, market, sales data and formulate plans and strategies to generate leads and
sales and formulate strategies to promote the company’s product portfolio.
o Assist in Advertisement, Branding, Promotion, Marketing and selling of company’s product & create a
competitive advantage for the company in the industry.
Requirements
Department- Development
o The District Development Manager is responsible to develop business activities and achieve the business
target of MARKFED in his area.
o Shall keep close coordination with the officers of the agricultural department, corporate department &
central cooperative banks in connection with fertilizer business.
o Shall keep liaison and coordination with the field level officers of the manufacturers and maintain a
cordial relationship with them to ensure receipt of adequate stock of fertilizers, from many
manufacturers.
o Shall collect the indent of fertilizers for supply to PACS/LAMPCS from the DRCS/DCCB sufficiently ahead
of the commencement of the season, and supply stock against the letter of credit.
o Shall ensure smooth delivery of fertilizers stocked to the approved retailers of Marked depending on
availability of stock against advance payment in the shape of a bank draft. Submission of bills to DCCB
immediately and collection of dues from the DCCB
o Mentor & Develop team members and lead the sales team to ensure goals and targets are being met.
Page 88 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
o Shall be responsible for smooth functioning of the godowns under his jurisdiction and to supervise the
godowns and verify the stock and cash at least once every month without fail.
o Shall convene the meetings of godown in charges/workers twice in a month preferably on a fixed date
and review receipt, sale & stock position of fertilisers, sundry debtor & creditors position, cash balance
and expenditure made, remittance position and bank statement, verify the receipt and expenditure
statement, cash book and stock book.
Requirements
Department- Audit
Requirement
Page 89 of 90
Study Report on Business Re-structuring of MARKFED, Odisha
BDO INDIA LLP, an Indian limited liability partnership, is a member of BDO International Limited, a UK
company limited by guarantee, and forms part of the international BDO network of independent
member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.
Copyright © September 2021, BDO INDIA LLP. All rights reserved.
www.bdo.in
Page 90 of 90