Download as pdf or txt
Download as pdf or txt
You are on page 1of 90

Study Report on Business Re-structuring of MARKFED, Odisha

BDO India LLP

Study Report on Business Re-


structuring of MARKFED, Odisha

Odisha State Co-Operative Marketing Federation Ltd. (MARKFED)

Page 1 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

Table of Contents
HISTORY OF ODISHA ................................................................................................. 10

ABOUT MARKFED ODISHA ............................................................................................ 12

KEY OBJECTIVES OF THE REPORT .................................................................................. 13

OUR APPROACH....................................................................................................... 14

HUMAN RESOURCES MANAGEMENT................................................................................. 16

5.1. Introduction of MARKFED Human Resources ............................................................................ 16


5.2. Our approach and methodology for HR Assessment .................................................................... 16
5.3. Staff Service Rules & RCS .................................................................................................. 17
5.3.1. What are Service Staff Rules? ........................................................................................ 17
5.3.2. What is RCS? ............................................................................................................ 17
5.4. CURRENT ORGANISATIONAL STRUCTURE ................................................................................ 18
5.4.1. Positions approved by RCS ........................................................................................... 19
5.4.2. Head office Wise Job Chart as per the by laws ................................................................... 20
5.4.3. Current Manpower availability ....................................................................................... 22
5.4.4. Location wise employment ........................................................................................... 23
5.4.5. Designation of outsourced employees .............................................................................. 23
5.4.6. Current Roles & Responsibilities of Area Manager ................................................................ 24
5.4.7. Current Roles & Responsibilities of Godown Superintendent ................................................... 25
5.5. GAP ANALYSIS OF HUMAN RESOURCE MANAGEMENT ................................................................... 26
5.5.1. GAP Analysis of Organisational Structure & Manpower........................................................... 26
5.5.2. Shortcoming of Area Managers ...................................................................................... 27
5.5.3. Short Coming of District wise Godown wise Employment ........................................................ 28
5.6. OBSERVATION & RECOMMENDATION FOR HUMAN RESOURCES MANAGEMENT ...................................... 29
5.6.1. Observation of Human resources management.................................................................... 29
5.6.2. Recommendation for Human Resources Management ............................................................ 30
5.6.3. List of vacancies to be filled on the basis of posts retiring in 3 years ......................................... 30
5.6.4. List of MANPOWER REQUIREMENTS .................................................................................. 31
5.6.5. Grade IV- Required Qualification & eligibility (Outsourced Jobs) .............................................. 32
5.7. PROPOSED ORGANISATIONAL STRUCTURE ............................................................................... 32
5.7.1. Proposed Organisation structure- Key Divisions ................................................................... 32
5.7.2. PROPOSED ORGANISATIONAL STRUCTURE (Transformed) ........................................................ 33
5.8. Recommended Recruitment Process ..................................................................................... 34
5.8.1. Disqualification for Appointment .................................................................................... 34
5.8.2. Medical Fitness ......................................................................................................... 34
5.8.3. Educational Qualification............................................................................................. 34
5.8.4. Age for Direct Recruitment .......................................................................................... 34
5.8.5. Source of Recruitment ................................................................................................ 34
5.8.6. Promotion Rules ....................................................................................................... 37
Page 2 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.8.1. Retirement ............................................................................................................. 37


5.8.1.1. Compulsory Retirement ............................................................................................ 37
5.8.1.2. Voluntary Retirement............................................................................................... 37
5.8.2. Mode of Recruitment Process ........................................................................................ 38
5.8.3. Succession Planning ................................................................................................... 38

SUPPLY CHAIN MANAGEMENT ....................................................................................... 40

6.1. Current Infrastructure & Products & Services .......................................................................... 40


6.1.1. Types of Infrastructure & Project Services of MAKRFED ......................................................... 40
6.1.2. Overview of the Godowns ............................................................................................ 41
6.1.3. Godowns ................................................................................................................ 41
6.1.4. Reasons for the unused capacity of godowns ...................................................................... 42
6.1.5. Utilization data of Godowns ......................................................................................... 42
6.1.6. Price support System (PSS) ........................................................................................... 44
6.1.7. Last 3 years Sales target vs achieved for Different Commodities ........................................... 46
6.1.8. Fertilizer distribution system ........................................................................................ 47
6.1.9. Sale Vs Target achievement for Fertilizer ......................................................................... 47
6.1.10. Clod Storage distribution system .................................................................................. 48
6.1.11. Shopping Complex distribution system ............................................................................ 48
6.1.12. Plants Distribution System .......................................................................................... 48
6.2. Inventory Analysis ........................................................................................................... 48
6.2.1. Manufacturer wise inventory analysis .............................................................................. 48
6.2.2. District, Godown-wise top selling fertilizers ...................................................................... 49
6.2.3. Top Fertilizers by Total Sales ........................................................................................ 50
6.2.4. District, Godown-wise top selling fertilizers ...................................................................... 50
6.2.5. District-wise Total Stock v/s Closing Balance ..................................................................... 51
6.3. GAP ANALYSIS OF SUPPLY CHAIN MANAGEMENT ........................................................................ 52
6.3.1. Gap Analysis of MARKFED Business Processes ...................................................................... 52
6.3.2. Our Approach & Methodology of Supply Chain Management .................................................... 52
6.3.3. Existing business process Gaps ...................................................................................... 52
6.3.4. Observations for Supply Chain Management ....................................................................... 53
6.3.5. Recommendation for Supply Chain Management.................................................................. 55
6.3.5.1. Recommendation to increase Fertilizer Sales ................................................................... 55
6.3.5.2. Recommendations to increase Procurement .................................................................... 55
6.3.6. Recommended New Areas ............................................................................................ 56
6.3.7. Proposed ECO System for Supply Chain Management ............................................................ 57

CAPACITY BUILING & CHANGE MANAGEMENT .................................................................... 67

7.1. Observation of Capacity Building & Change Management ............................................................. 67


7.1. Recommended Training for Capacity Building & Change Management .............................................. 68
7.2. Service Condition during training ......................................................................................... 71

IT ENABLEMENT ....................................................................................................... 72

Page 3 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

8.1. Observation on upcoming software implementation................................................................... 72


8.2. Recommendation points for IT Implementation Monitoring Process ................................................. 72
8.3. Functional Architecture .................................................................................................... 74

SUMMARY .............................................................................................................. 75

ANNEXURE I: GOOD PRACTICES – OTHER STATES ............................................................... 76

10.1. Punjab....................................................................................................................... 76
10.2. Kerala ....................................................................................................................... 77
10.3. Tamil Nadu ................................................................................................................. 77
10.4. Gujrat ....................................................................................................................... 77

ANNEXURE II- INDECATIVE QUALIFICATION & ELIGIBILITY ..................................................... 78

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

exceptional administrative and technical support.

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.

The scope of assignment is as per Contract / PO / WO- NO.3279 dated 19/08/2021.

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:

• Determined which, if any, recommendations should be implemented.


• Acted on behalf of management in reporting to the Board of Directors, or Audit Committee.
• Have custody of assets.
• Act in any capacity equivalent to a member of management or an employee.
• Assess the quality of source data.
• Held liable, for any loss or damage, of whatsoever nature, arising from analysis.
• Approved, or be responsible for, the overall fraud risk assessment work, including the ultimate assessment of
review risk, determination of scope, project priorities and frequency of Performance of audit procedures.

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.

Figure 1 Odisha Agriculture Map

1
https://agriodisha.nic.in/
Page 10 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

Some of the major agricultural hubs in Odisha are:

Cuttack

Sambalpur Dhenkanal

Baleshwar

Figure 2 Agricultural Hubs of Odisha

Page 11 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

ABOUT MARKFED ODISHA


The Indian Famine Commission (1901) induced the government to set up a committee under the presidency of

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

of Co-operative movement in Odisha.

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

the right time, right place & at the right price.

b. Procurement of Agricultural commodities under Price Support Scheme (PSS) & Price Stabilization Fund (PSF)

to help farmers to get fair price of their produce.

MARKFED eventually became key moment in the history of local cooperatives, servicing millions of farmers and

partnering with them to expand and succeed in Odisha.

Page 12 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

KEY OBJECTIVES OF THE REPORT


MARKFED has been facing several challenges in terms of human resources, supply chain management, PSS, and
Infrastructure management etc. To conquer the same MARKFED has decided to perform high level study of the
overall functions and possibility of restructuring of the organization. BDO was engaged and worked on this report
with the following key objectives in attention: -

➢ 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: -

Figure 3 Current State of MARKFED

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

Current State Assessment of the MARKFED Dept


Requirement Gathering
Gap assessment & Proposed
Survey for Skill Recommendations
development Human & Resource
Management
Collect Suggestion & Indentifed Gaps
Recommendation Supply Chain Management
Capacity Building & Change Good Practices
Study & Aanlysis Process
Managemenrt Proposed Observation &
IT Enablement Recommendations

Figure 4 Our Approach

Page 15 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

HUMAN RESOURCES MANAGEMENT


5.1. Introduction of MARKFED Human Resources
The RCS(O), Bhubaneswar vide order No. 7934 dated 02/03/2009 has approved the staff strength of MARKFED
limiting to 371. MARKFED has 102 office units. But the present staff strength is only 143 against sanctioned
strength of 371 by RCS(O), Bhubaneswar and total vacancy is 228.

Senctioned Strength :- 371

Existing Position:- 143

Vacant Post- 228

Figure 5 Current Manpower of MARKFED

5.2. Our approach and methodology for HR Assessment


To evaluate all the roles and responsibilities of the manpower in MARKFED Odisha we have undertaken a
variety of assessment and Job Evaluation Methods:

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

5.3. Staff Service Rules & RCS

5.3.1. What are Service Staff Rules?


These rules may be called ‘The Odisha State Cooperative Marking Federation Employees Recruitment,
Classification, Control & Appeal Rules’.

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

5.3.2. What is RCS?


Right from the Registration of a Cooperative Society till the cancellation of its registration, the Registrar
acts as friend, philosopher and guide to the cooperatives and ensures that Cooperative Societies function in
accordance with the Cooperative Act. In fact, the Registrar is "Trimurti" of the Cooperative movement. The
main functions of the Registrar are as under: -

➢ Registration of Cooperative Societies.


➢ Registration of amendments in the Byelaws of Cooperative Societies.
➢ Amalgamation, Division, and re-organization of Cooperative Societies.
➢ Ensure timely Election of the Managing Committee in Cooperative Societies.
➢ Conduct elections of Managing Committee in primary cooperative banks and federal cooperative
societies.
➢ Ensure proper investment of funds by Cooperative Societies as per Act and Rules.
➢ Conduct audit, order inspection, inquiry and also fixing surcharge on negligent functionaries of
cooperative societies.
➢ Settle disputes of Cooperative Societies through the process of arbitration.
➢ Function as an appellate court.
➢ Enforcement/execution of Orders, Awards and Decrees of various Courts.
➢ Order winding up and cancellation of registration of defunct/non-functional societies.
➢ Operating Cooperative Education Fund for training, education, propaganda, and publicity program for
the development of Cooperative Movement in the NCT of Delhi.
Page 17 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

➢ To frame/amend Delhi Cooperative Societies Rules, 1973 from time to time.


➢ Issue Instructions/directives for the promotion of business of different types of Cooperatives.
➢ To approve proposals for enrolment, resignation, and cessation of membership in Housing Cooperative;
and
➢ To frame, execute and monitor various beneficiary schemes approved by the Central /State Govts,
including financial assistance to various sectors of Cooperatives

5.4. CURRENT ORGANISATIONAL STRUCTURE


Organizational structure is the framework of the relations on jobs, systems, operating process, people, and
groups making efforts to achieve the goals. Organizational structure is a set of methods dividing the task to
determined duties and coordinates them. The following structure shows the existing organizational structure
of MARKFED Odisha where there are 3 officers under Managing Director i.e., secretary, General manager
(Finance) and development officer.

Committee of Management

President

MD

Secretary General Manager Finance Development officer

Fertili er section
Accounts Audit Reconciliation
section section of accounts
Area office(
GF plant,
nos)
Bargarh(defunct)

Fertili er godown
( nos)

Marketing Civil & Estate and Inspection Establishment


PSS section Legal section PIO
section mechanical asset section section section

SE Plant, agatpur cold


Bhubaneswar Rayagada cold
Bargarh storage
cold storage storage
(Lease) (Lease)

Figure 6 Current Organisational Structure

Page 18 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.4.1. Positions approved by RCS


Sl. No. Category of employees Post sanctioned Men in Post lying vacant
by RCS position
1 Managing Director 1 1 0
2 Secretary 1 1 0
3 General Manager-Finance 1 1 0
4 Development Officer 1 1 0
5 Auditor on deputation 6 3 3
6 Shift In charge/Foreman 3 1 2
7 Private Secretary 2 2 0
8 Analyst 3 2 1
9 Assistant Executive Engineer 1 1 0
10 Assistant Engineer 1 1 0
11 Area Manager 24 14 10
12 Godown Manager 25 13 12
13 Senior Assistant 40 18 22
14 Senior Typist 2 2 0
15 Junior Asst. 55 3 52
16 Asst. Telephone Operator - 1 -
17 Weigh Bridge-cum-Time Clerk - 1 -
18 Sales Assistant 49 33 16
19 Head Driver (LV) 1 1 0
20 Driver (L.V) 6 2 4
21 Welder 1 1 0
22 Plant Attendant 11 5 6
23 Assistant Operator 5 1 4
24 Gardner 2 1 1
25 Peon 59 21 38
26 Watchman 19 9 10
27 Sweeper 3 3 0
28 Deputy Manager (Quality Control) & Chemist. 1 0 1
29 Maintenance In charge 1 0 1
30 Personal Assistant 3 0 3
31 Senior Steno 1 0 1
32 Junior Steno 1 0 1
33 Junior Engineer 3 0 3
34 Sub-Engineer 1 0 1
35 Telephone Operator-cum-Caretaker 1 0 1
36 Plant Operator 11 0 11
37 Legal Assistant/Asst. Law Officer 1 0 1
38 Junior Typist 3 0 3
39 Jr. Cold Storage Operator 7 0 7
40 Despatch In charge/Despatcher 1 0 1
41 Welder-cum-Fitter 1 0 1
42 Helper (Truck) 4 0 4
43 Fitter 1 0 1
44 Assistant Computer Programmer 1 0 1
45 Data Entry Operator 2 0 2
46 Mechanic 1 0 1
47 Driver (H.V) 4 0 4
Total 371 143 230

Page 19 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.4.2. Head office Wise Job Chart as per the by laws


❖ Job Chart for Managing Director of MARKFED

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.

a) The powers and duties of the MD shall be as follows:


I. To conduct the business of the federation & to implement the policy and program laid down by
the committee and to appoint such staff as may be necessary for this purpose with the approval
of the committee and the chairman as the case may be.
II. To conduct, negotiate and make arrangement for the purchase and sale of goods and their proper
storage etc. as may be entrusted by the committee subject to approval of the chairman.
III. To sanction expenditure on establishment for purchase, storages subject to the approval of the
chairman.
IV. The MD may delegate any powers to the secretary subject to the approval of the committee.
V. In the absence of the MD the secretary shall perform the functions of the MD
VI. To perform such other functions that may be delegated or conferred by the committee time to
time.
VII. He is responsible for timely submission of reports and returns and replies to correspondences and
carry out the decision of the General Body, Managing Committee & Executive Committee of the
Chairman.
VIII. He shall be the officer to sued or be sure on behalf of the Federation. All bonds and other legal
documents executed in the favour of the federation shall in his name.
IX. To call and attend all General Body meeting, Managing Committee, Executive Committee, Sub-
Committee meeting & record the proceedings of such meetings in the minute book.
X. To prepare plan & estimates for construction & repair of building of the Federation affiliated
societies and other corporate bodies well entrusted for construction to the federation and the
execution thereof be done through its Technical Cell or the contractor subject to approval of the
President & Managing Committee as the case may be.
XI. He shall have power on the behalf of the Federation to operate bank accounts individually or
jointly with any other officers authorised for the purpose and subject to such direction and limits
as may be laid down by the Managing Committee. In case of emergency, the Managing Director
with the approval of the Chairman can alter such limits and place the same for ratification in the
Managing Committee.
XII. To insure and keep insured upon such terms and he may deem fit all or any stocks or properties
of the Federation subject to approval of the Managing Committee and Chairman as per budget
estimate.

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.

❖ Job Chart for Secretary of MARKFED

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

XI. To arrange realization of the sale proceeds.


XII. To arrange the receipt of agricultural produced for the sale and arrange for its grading and
processing.
XIII. To enter into an agreement or contract for purchase or sale of goods or lease of lands or buildings
subject to the previous approval of the Managing Director,
XIV. To draw, accept, endorse, and negotiate bills pf exchange and endorse sale transfer and
otherwise deal with shares, government securities for or on behalf of the Federation jointly with
Managing Director.
XV. To perform such duties that maybe delegated by the Managing Director and the Committee from
time to time.
XVI. The Secretary may delegate any of his powers to the financial advisors or to some other officer
appointed subject to approval of the committee, Chairman and Managing Director. In the absence
of the secretary, the MD may authorize any officer to perform such functions as are necessary.
XVII. Secretary shall be competent to authorize the officer of the Federation in the due concurrence
of the MD to keep cash safe- custody, and to issue receipts on behalf of the federation. He shall
also be competent to prescribe the maximum limit of cash that can be kept in the iron chest in
the office/ divisional/ branch office in due consultation of MD or Managing Committee. The
arrangement so made shall also be place before the Managing Committee for ratification
XVIII. The Managing Director or secretary shall intimate the due date of expiry of the term of office of
the existing committee to the concerned election officer, at least 3 months prior to such dates.

5.4.3. Current Manpower availability


❖ Types of Employees

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.

Deputation & Regular


143

Outsourced
63

Figure 7 Types of Employment

Page 22 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.4.4. Location wise employment


A survey was conducted with a few employees to understand the numbers of employees distributed among
the state. Presented figure represents the distribution of manpower according to the location i.e., Head
office (HO), district and godown. A major share of manpower is engaged in at HO and rest of the share is
distributed amongst the remaining 2 locations.

S.NO Office Location Managrial Positions


1 MARKFED Head Office 20
2 Districts Wise Available Resources 13

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

Figure 8 Location wise Employment status

5.4.5. Designation of outsourced employees


Outsourced employees are those employees who are recruited on a contract. Therefore, presented figure
concludes the number of outsourced employees engaged in a certain designation. As shown, a major
share has been employed in sales department, senior assistant, and peon.

Page 23 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

Assistant telephone Assistant Operator,


Welder, 1 operation , 1 1 DESIGNATIONS
Watchman, 8 Driver, 3 Gardner, 1 Assistant telephone operation
W.B-cum-TC, 1
Junior assistant , 6
Sweeper, 3 Assistant Operator
Junior typist, 1
Senior typist, 1 Driver
Gardner
Senior assistant, 20 Peon, 22 Junior assistant
Junior typist
Peon
Private secretary
Private secretary, 2
Sales assistant
Senior assistant
Sales assistant , 33

Figure 9 Designation wise Outsourced Employees

5.4.6. Current Roles & Responsibilities of Area Manager


Area Manager undertakes smooth delivery of fertilizers, maintaining records, preparing annual
budget, verifying stock and cash etc.

Figure 10 Roles & Responsibilities of Area Manager MARKFED

Page 24 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.4.7. Current Roles & Responsibilities of Godown Superintendent


Godown superintendent is the in charge of buffer stock, insurance of Godowns, reconciliation of account
preparing reports, Supplying products to the centers etc.

Figure 11 Go Down Superintendent Roles & Responsibilities

Page 25 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.5. GAP ANALYSIS OF HUMAN RESOURCE MANAGEMENT

5.5.1. GAP Analysis of Organisational Structure & Manpower


❖ MARKFED Odisha, Bhubaneswar has 102 existing units. The present staff strength is only 143 against
sanctioned strength of 371 by RCS(O). besides there are 63 outsourced manpower as DEOs, Security
personnel and others.
❖ The organization is abiding by its staff service rules.
❖ The guidance of this organization is taken from the RCS (Registrar of Cooperative Societies) and
AGCS(O), who is responsible for timely audit, dispute settlement, proper investment of funds
amendments of by-laws etc. In essence overall approval is given by the RCS
❖ The existing organizational structure consists of 3 major positions undertaking all the departments
where the Secretary has been crowded with several unlinked departments
❖ The Managing Director is responsible for conducting the business of the federation & implementing
the policy and program laid down by the managing committee. He may delegate his powers to the
secretary
❖ The Secretary shall be the custodian of all properties of the Federation, supervisor of the day-to-
day administration of the federation, place the Audit report before the Managing Director, to
perform such duties that maybe delegated by the Managing Director and the Committee, and The
Secretary may delegate any of his powers to the financial advisors. Secretary is the person appointed
by Committee & RCS and his terms and conditions are determined by the Government
❖ The number of godowns distributed under 1 area office is inconsistent, leading to the are managers
having unequal workload amongst them.

Page 26 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.5.2. Shortcoming of Area Managers


According to the survey, the number of godowns assigned under a single area office will automatically
lead to such numbers of godowns under a single area manager. As the following graph numbers are
representing, the distribution of the godowns is unequal and have only 1 manager as their guide.

Number of godowns - Area Offices


SUNDARGARH 3
JHARSUGUDA 2
BARGARH 5
SAMBALPUR 7
PURI & JATNI (HEAD OFFICE) 4
BOUDHA 3
BARIPADA 5
RAYAGADA 1
JEYPORE 4
KEONJHAR 3
NUAPADA 2
BHAWANIPATNA 6
JAGANNATHPUR 3
ANGUL 5
JAJPUR ROAD 4
CUTTACK 6
BOLANGIR 6
BHADRAK 4
BALASORE 3

0 1 2 3 4 5 6 7 8

Figure 12 Inadequacy of Area Managers.

Page 27 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.5.3. Short Coming of District wise Godown wise Employment

Number of Godowns - Districtwise


SUNDARGARH 3
JHARSUGUDA 2
BARGARH 5
DEOGARH 2
SAMBALPUR 5
NAYAGARH 1
KHORDHA 1
PURI 2
KANDHAMAL 2
BOUDHA 1
MAYURABHANJA 5
RAYAGADA 1
NABARANGAPUR 2
MALKANGIRI 1
KORAPUT 1
KEONJHAR 3
NUAPADA 2
KALAHANDI 6
GAJAPATI 1
GANJAM 2
ANGUL 2
DHENKANAL 3
JAJPUR 4
KENDRAPARA 1
JAGATSINGHPUR 2
CUTTACK 3
SUBARNAPUR 3
BOLANGIR 3
BHADRAK 4
BALASORE 3

0 1 2 3 4 5 6 7

Figure 13 District Wise Go Down Distributions

Page 28 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.6. OBSERVATION & RECOMMENDATION FOR HUMAN RESOURCES


MANAGEMENT

5.6.1. Observation of Human resources management

➢ 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

5.6.2. Recommendation for Human Resources Management


On the basis of assessment below are the endorsement with respect to the human resource management.

➢ 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: -

5.6.3. List of vacancies to be filled on the basis of posts retiring in 3 years

These positions have calculated based on the list employees who will retire in upcoming 3 years.

S. No Designation Y-2021 Y- 2022 Y- 2023 Y-2024


1. Private Sectary - - 1 -
2. Assistant Executive Engineer - - - 1
3. Area Manager - 4 4 4
4. Shift In charge - - 1 -
5. Godown Manager - - 1 2
6. Senior Assistant - 3 2 3
7. Analyst - - 1 1
8. Jr. Assistant - - 1 -
9. Weybridge cum Time Clark - - 1 -
10. Plant Attendant 1 1 3
11. Sales Assistant - 3 4 3
12. Senior Typist - - - 2
13. Gardner - - - 1
14. Peon - 1 1 5
15. Sweeper - 1 - -
16. Welder 1 - - -
17. Watchman 1 - - 2
18. Total: - 60 Position will be vacant in upcoming 3 Years 3 13 17 27

Page 30 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.6.4. List of MANPOWER REQUIREMENTS


The MARKFED Odisha, required positions when they will be restructuring the organization.

Name of the post Existing Addl Req. Total Y1 Recruitment


Managing Director 1 0 1 0
Secretary 1 0 1 0
Auditor 3 0 3 0
General Manager /Development Officer 2 1 3 1
Deputy General Manager 0 9 9 5
Manager (Dist.) 14 26 40 26
Assistant Manager 13 79 92 47
Engg. Staff 2 0 2 0
Shift In-Chrge 1 0 1 0
Sales asst./ Jr. assit. /Sr. asst 54 0 54 0
Assistant Telephone Operator 1 0 1 0
Analyst 2 0 2 0
Sr. Typist 2 0 2 0
Sub staff (watchmen, Peon, plant attendant.) 35 0 35 0

Sub staff (sweeper, Gardner, assistant operator. etc.) 5 0 5 0


Driver 3 0 3 0
Private Secretary 2 0 2 0
Welder/WB Cum time clerk 2 0 2 0
Total 143 115 258 79
Outsourced Staff Existing Addl Req. Total Y1 Recruitment
Data Entry Operator /typist 44 46 90 30
JE 2 0 2 0
Agri Ext. 1 0 1 0
Security 16 39 55 39
Total 63 85 148 69

Page 31 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.6.5. Grade IV- Required Qualification & eligibility (Outsourced Jobs)


➢ Assistant Operator- Valid certification in relevant field with experience of 3-4 years.
➢ Welder- Valid certification in relevant field with experience of 3-4 years
➢ Senior Personal Secretary- Graduate in relevant field with 3+ years of experience.
➢ Junior Assistant- Graduate from a recognized university
➢ Private Secretary- Graduate from a recognized university, Proficiency in shorthand and a basic
computer course certification.
➢ Senior Typist- Graduate from a recognized university, valid certification in the relevant field with 3+
years of experience.
➢ Junior Typist- Graduate from a recognized university, valid certification in the relevant field.
➢ Peon- 6th pass with 3-4 years of experience.
➢ Watchman- High school pass with 3-4 years of experience.
➢ Driver- Valid driving license with 5+ years of experience.
➢ Gardner- Prior experience in huge gardens’ maintenance.

5.7. PROPOSED ORGANISATIONAL STRUCTURE

5.7.1. Proposed Organisation structure- Key Divisions

Figure 14 Org. Key divisions

Page 32 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.7.2. PROPOSED ORGANISATIONAL STRUCTURE (Transformed)


Proposed structure has 3 main heads who are now undertaking departments which are more interlinked to each other and would provide better coordination.
Introduction of new departments has also been done to ensure efficiency. Upper grade employees have been provided with managers and assistants for
delegation of workload.

Figure 15 Proposed Organisational structure

Page 33 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.8. Recommended Recruitment Process

5.8.1. Disqualification for Appointment


➢ No person shall be eligible for appointment or continuance in service of the Federation if he has
been convicted by a criminal court for an offense involving moral turpitude or on grounds of internal
or national security.
➢ No person shall be appointed in the service of the Federation in case he is discharged or dismissed
from service any Cooperative institution, Public Sector Undertakings, Local Authority, State or
Central Government.

5.8.2. Medical Fitness


No person shall be eligible for appointment in the service of the Federation unless he is certified to be
medically fit by a medical officer, not below the rank of an Assistant Surgeon in service.

5.8.3. Educational Qualification


The educational qualification for entry into the Federation’s service shall be as per Schedule – B

5.8.4. Age for Direct Recruitment


No person shall be ordinarily eligible for appointment to any post by direct recruitment if he is less than
21 years of age or more than 28 years of the 1st day of July of the year in which the vacancies are notified.

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.

5.8.5. Source of Recruitment


All posts in Grade -IV shall be filled up by the direct recruitment inviting candidates from the local
employment exchange and the person engage on daily wages basis/ consolidated pay in different units of the
Federation. 50 % of the posts in class- III grade like sales assistant/ diary/ Dispatch Assistant, Treasury –
Sarkar, Security Guard in plants, Timekeeper, Work Sarkar, Control Rot Attendant will be filled up by
promotion from the employees in category VIII, Grade IV promotion will be by selection and not by seniority.
Candidates will have to appear in a written test and interview. The rest 50% of the above Grade III posts will
be filled up by direct recruitment.

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

Figure 16- Recommended Recruitment Process

Figure 17 Recommended Plant Level Vacancies

Page 36 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.8.6. Promotion Rules


Promotion of in-service personnel to higher posts shall be according to Merit with due regard to seniority as
per promotional chart specified in Schedule C.
a. Where vacancies are to be filled up promotion, persons who are not disqualified on account of
punishment may ordinarily be considered for promotion from the lower category to the higher
category on the basis of “Merit-cum-Seniority”. Merit shall mean the general performance of the
person as reviled from his service record and C.C.R.
b. Where a promotion is made to fill up a temporary vacancy on account of any employee proceeding
on leave, the promotion will automatically seas on the incumbent returning to his post. Such
temporary promotion shall not be made unless the vacancy is for 30 days or more.
c. If any employee/ workman of a lower category holds additional charge of a post in a higher category
for a period of not less than 30 days will ordinarily be entitled to acting allowance not exceeding 20%
of the basic pay of the higher post in addition to his pay in the lower post. Appointing authority may
consider not to allow such extra payment to all cases.

5.8.1. Retirement

5.8.1.1. Compulsory Retirement


The appointing Authority may retire an employee/ workman on grounds of behavioural depravity,
lack of integrity obvious inability or inefficiency or being a security risk etc. to be recorded in writing
but without giving him any reason after he has completed 20 years of service with the Federation or
on attaining 50 years of age whichever is earlier, provided that in such cases, the employee/ workman
concerned shall be given 3 months’ notice or 3 months’ pay in lieu thereof and the
employee/workman shall, in that case, be entitled to encase the earned leaved leave due to him
subject to a maximum of 180 days. The compulsory retirement may be regulated by the Federation
in general or special orders for the smooth management of the work of the federation.

5.8.1.2. Voluntary Retirement


An employee/ workman may also retire from the employment of the Federation at any time after
the completion of 20 years of service with the Federation or on attaining 50 years of age whichever
is earlier provided that he shall give in this behalf a notice in writing to the appropriate authority at
least 3 months before he wishes to retire.

Page 37 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

5.8.2. Mode of Recruitment Process


Subject to the rules prescribed by Federation for filling up the vacancies in different Grades and vacancies
of the posts outside the Grade Recruitment to the post shall be made by the following modes in the respect
to each post, namely: -

➢ 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.

Figure 18 Recommended Recruitment Process

5.8.3. Succession Planning


➢ Identifying objectives and the position for succession planning. The planner needs to understand the
roles and responsibilities of the upcoming vacancies one or two years prior to the execution.
➢ Some of the positions could be filled through promotions and the rest can be filled through direct
recruitment. For promotion the panner must refer to the Staff Service rules- Promotion Section
which would enable him/her to better manage the personnel placements.
➢ Once the identification of positions is completed the planner must focus on the skill set of the
prospective candidates. It includes the assessment of hard as well as soft skills that would be
required for the vacant position. After creating a pool of prospective candidates, the next step is
where the candidates would be assessed and judged on the basis of competencies required by the

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

: Gather r oles and : Either Pr omotion or Cr eate a pool of


r esponsibilities of the Dir ect Recr uitment (For pr ospective employeeson
upcoming positions, or pr omotion r efer to staff the basis ofskills r equir ed
year s pr ior to the ex ecution ser vice r ules) for the vacant position.

Conducting gr oup Dr aw out high


meetings and discussion for potential pr ofiles and
finali ing(In case of high per for mances out of the
pr ofiled job the decision w ould : One to one
pr ospective employees and
be made by the appointing inter view w ith the candidate
submit the list to either
committee. For the r est, the for better assessment
appointing committee or
immediate super ior of the immediate super ior of the
position w ill be r esponsible) vacant position

Figure 19 Succession Planning

Page 39 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

SUPPLY CHAIN MANAGEMENT

6.1. Current Infrastructure & Products & Services

6.1.1. Types of Infrastructure & Project Services of MAKRFED

Cold Storage Plants PSS System

Fertilizer
Shopping
distribution Godown
Complex
System

Figure 20 Products & Services of MAKRFED

Page 40 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

6.1.2. Overview of the Godowns


The MARKFED has total storage capacity of 125115 MT, with the assessment of data available with us we
have observed that the MARKFED uses only 89115 MT capacity over available storage, and more over the
team has not found the data (unavailable data) of 15350 MT capacity. And 16% storage capacity are mostly
unused by MARKFED.

Figure 21 Dashboard of Godowns

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

Figure 22 District Wise unused godowns

6.1.4. Reasons for the unused capacity of godowns


Several godowns at MARKFED are either completely unutilized or have an unused capacity owing to different
reasons. 42% of the unused godowns are completely idle. 5% of the unused godowns are in broken condition.
8% of the unused godowns are dysfunctional.

Figure 23 Reasons for Unused Capacity of the Godowns

6.1.5. Utilization data of Godowns


There are three categories under which MARKFED godown’s utili ation can be summari ed:

➢ Used for storing the fertilizers


➢ Leased out
➢ Unutilized

Page 42 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

Godow ns unused
,3 ,

Godow ns let out, , 3

Godow ns used for fer tili er


, s33,

Figure 24 Utilization data of Godowns

Capacity (NCDC) Capacity (RK ) Capacity ( ired)

Figure 25 Godowns Capacity

Page 43 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

6.1.6. Price support System (PSS)


MARKFED acts as a facilitator on behalf of the Government to procure the oil seeds and pulses. The
Government of India provides the Minimum Support Price (MSP). Currently, MARKFED Odisha is only
allowed to procure oil seeds and pulses. The Primary Agricultural Credit Society (PACS) collects and stores
the produce from the farmers. PACS then enters the information of the collection on E-samriddhi portal and
a quality officer designated from PACS inspects the quality of the produce and approves/rejects the product
accordingly. QR code is generated after which packing and storing of produce is done. MARKFED arranges the
transportation for moving the produce from PACS warehouse to NAFED’s warehouses. MARKFED sends a
receipt notification to National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) after
which NAFED releases the payment to the farmers. Farmers receive their payment in typically 7-15 days.
MARKFED Odisha receives 1% of the margin and the other 1% goes to the agricultural society.

Pr epar ation of DACs r eceive the


District Agriculture Strategy Committees
Notification letter to PACs r eceive the cr ops fr om
(DACs) Organi e Meeting for Pre allotment fr om the
Assessment of districts wise Crops NAFAD Far mer s at MSP

Collection of Goods PACs fill the details one


PACs fix QR Code Sticker s in Appointment of Quality
by Far mer s samr idhiCentr al Por tal of
each packets for identification collected Cr ops Inspection Officer for Cr ops

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

Figure 26 Price Support System (PSS) of MARKFED

Page 44 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

Target Achievement of Target Achievement of Black


Groundnut pods gram ( rad)
. .
.
3 .
.
. .
.
.
.
. .

Target Achievement of Green


Target Achievement of gram (M ung)
Sunflower seeds .
3 . .
. .
.
3 .
.
. .
. .
. .

Figure 27 Targets Vs Achieved Different Commodities

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:

S. No Special characteristics Max limit of tolerance (in %) for FAQ

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

6.1.7. Last 3 years Sales target vs achieved for Different Commodities


Overall analysis of Price support system (PSS) sales target vs achieved for different commodities.

Target vs Achieved of Different Commodities


16000.000

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)

Figure 28 Last 3 Years (PSS) Sales Target vs Achieved

Page 46 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

6.1.8. Fertilizer distribution system


The process starts with the go down manager raising the requirement for the fertilizer after which the area
manager submits the requirement of fertilizer to the head office. The head office contacts the empanelled
manufacturers and dealers. The purchase order is prepared by the head office to the manufacturers/dealers.
The manager of go down receives the fertilizer after which the fertilizer is sold through PACS, retailers and
the government farms. Finally, the collection amount is sent to the Head office.

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

Pr epar ation of Pur chase


Sale of Fer tili er thr ough PACS,
Godow n Manager r eceives the Fer tili er Or der (PO) by ead Office
Retailer s and Gover nment Far ms
to Manufactur er s Dealer s

Collection Amount Sent to ead Office

Figure 29 MARKFED fertilizer distribution process

6.1.9. Sale Vs Target achievement for Fertilizer

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%

Target Achievement Achievement

Figure 30 Last 3 Years Fertilizer (Sales & Target)


Page 47 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

6.1.10. Clod Storage distribution system


MARKFED Odisha has leased out some of its godowns to private as well as public sector companies.

6.1.11. Shopping Complex distribution system


MARKFED Odisha has constructed a shopping complex in front of its offices and has rented it out to
private companies and generates some income from that.

6.1.12. Plants Distribution System


MARKFED Odisha has leased out some of its godowns to private as well as public sector companies.

6.2. Inventory Analysis

6.2.1. Manufacturer wise inventory analysis


Inventory is a core part of the supply chain which could impact a lot of other aspects as well. we
carried out the analysis of district wise inventory data and what percentage of total inventory does
each district account for, the types of fertilisers they carry, their top selling fertiliser. below are the
key observations that come out of the analysis.

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

Figure 31 District wise inventory Analysis (I)

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.

Figure 32 District Inventory Analysis (ii)

6.2.2. District, Godown-wise top selling fertilizers


Observed maximum sales of DAP-IFFCO fertilizer for Baripada Buffer, Benoti Depot, Rairangpur and
Udala Depot in Mayurbhanj while Karanjia Depot sold DAP-IPL fertilizer the most.

➢ 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

6.2.3. Top Fertilizers by Total Sales

Figure 33 Top Fertilizer by Total Sales

6.2.4. District, Godown-wise top selling fertilizers


➢ Observed maximum sales of DAP-IFFCO fertilizer for Baripada Buffer, Benoti Depot, Rairangpur and
Udala Depot in Mayurbhanj while Karanjia Depot sold DAP-IPL fertilizer the most.
➢ 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 50 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

6.2.5. District-wise Total Stock v/s Closing Balance


➢ Jatani Buffer, Khordha has the highest share of the unsold lot. Observed 30% of the total stock in
the closing balance.
➢ 13.1% unsold stock seen for Mayurbhanj district. Out of the 5 Godowns located in Mayurbhanj,
Karanjia godown holds the maximum share at 38% and is left with 30% of the total stock unsold.
➢ 11.4% unsold stock seen for Malakangiri district
➢ Bulk of the total stock is held in Nabarangpur district split amongst 3 godowns. Total unsold stock
observed is 2.4% of the total stock.
➢ 4.4% unsold stock seen for Keonjhar district.
➢ Jagannathpur Buffer, Ganjam and Jeypore, Koraput are left with below 2% of the total stock.

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

6.3. GAP ANALYSIS OF SUPPLY CHAIN MANAGEMENT

6.3.1. Gap Analysis of MARKFED Business Processes


The Gaps which have been identified in this part of the report highlights the points where MARKFED can focus
upon and improve. The gaps are further divided into the existing gaps of MARKFED and the anticipated gaps.
The purpose of this section is to find the difference between the current situation of MARKFED and the desired
situation.

Man Method

Lack of Skilled Labour No Automation in Any of the Processes


Poor Communication within employees Lack of Co Ordination in PACS and MARKFED

nclear Roles and Responsibilities


Low Worker ratio with respect to Lack of measurement methods leading to
work required spillage of product

B A Low Revenue
nutili ed Godwons and Land Lack of Diversified and additional product
and services offerings

Lack of Demand Forecasting System Inefficient Allocation of Marketing Budgets


No Inventory Tracking System Faults in Organi ation Structure

Machinery Management

Figure 35 Fishbone Diagram of the MAKRFED

6.3.2. Our Approach & Methodology of Supply Chain Management


The AS-IS analysis done in the beginning of the report describes the existing structure, objectives, and
process of MARKFED Odisha. By evaluating the key objectives with the actual performance of MARKFED, gaps
could be identified.

6.3.3. Existing business process Gaps


The existing gaps would suggest the bottlenecks in the whole supply chain process of MARKFED Odisha.

➢ No Inventory tracking system

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.

➢ Absence of a proper Demand forecasting tool/method


Page 52 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

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.

➢ No automation in any process:

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.

➢ Lack of additional products and services:

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.

➢ Unutilized godowns & land:

MARKFED has a huge unutilized capacity and there is no mechanism to generate revenue from those unutilized
assets as of now.

6.3.4. Observations for Supply Chain Management

❖ The Godowns/lands are not being used at full capacity


❖ MARKFED is lagging in achieving targets for procurement of ground pods, sunflower seeds, green gram
and black gram under the Price Support Scheme for the past 3 years
❖ There is no automation in any process of MARKFED in the supply chain area, thereby making it difficult
to track the status of inventory or take other critical decisions in terms of distribution and demand
forecasting
❖ As there are no records of inventory on digital systems, there is no information on the amount of
inventory being lost in spoilage or other key critical information which makes it difficult for
management to take decisions
❖ Currently, MARKFED has restricted itself to procuring only a limited number of crops/produce in the
Price Support Scheme area and dealing in fertilizer business only
❖ MARKFED is unable to meet the supply demanded by the Godown managers on time and in sufficient
quantity because of which it is losing out on market share and revenue

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

3. Supply Chain Distribution:

❖ There is no proper inventory management system & record of inventory in the digital systems

❖ There is no proper monitoring mechanism for the inventory in transit

❖ There is no proper demand forecasting method/technique such as trend analysis or time series

analysis in order to forecast the demand of fertilisers

❖ There is clearly a mismatch between the demand and supply of fertilisers

❖ There is no coordination between the fertiliser manufacturer and MARKFED

❖ There is absence of an automation system or ERP software which leads to lower transparency and

higher lead time

❖ There is an absence of product diversification or additional offerings by MARKFED

❖ 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

6.3.5. Recommendation for Supply Chain Management

6.3.5.1. Recommendation to increase Fertilizer Sales

❖ 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

6.3.5.2. Recommendations to increase Procurement

❖ 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

6.3.6. Recommended New Areas


❖ Soil testing lab and fertilizer recommendation:
MARKFED is a body primarily initiated for the betterment of farmers and their environment. Before the
farming activities begin, it is important to adjudge the quality of soil and its sufficiency for plant growth,
the testing will also help in suggesting the kind of fertilizer to be used and should be leveraged to
promote and sell the fertilizer from MARKFED quota. This business case will help promote and sell
fertilizer directly to farmers, reducing the number of intermediaries in the supply chain and thus
reducing the overall complexity along with an alternate revenue stream of quality assessment.
❖ Cattle feed production:
With the ever-increasing consumer demand in India, cattle houses and poultry are estimated to increase
along with urbanization. To cater to this demand MARKFED can leverage its governmental ties and start
manufacturing cattle feeds and sell them in the market. The manufacturing costs of cattle feeds can
be lowered by sourcing raw materials directly from farmers and chemical manufacturers, or source
leftover foods from hotels and restaurants since left-over foods are one of the primary raw materials.
After processing the leftovers, they can be sold as cattle feed for cows, buffaloes, pigs, poultry animals
etc.
❖ Procurement of other cash crops:
MARKFED could look into the possibility of procuring cash crops like fiber crops such as cotton, jute,
flax and kenaf. Other cash rich crops such tea, coffee and turmeric could be explored. In the
horticulture area, MARKFED could explore cashew nut and rubber procurement. This could create a
collaborative environment wherein MARKFED could also promote the plantation of these cash rich crops
by imparting the training to farmers under CSR and thereby creating a win-win situation for everyone.
❖ Diversification of business areas:
MARKFED has restricted itself to the fertilizer business and procurement of limited number of crops
under PSS scheme. In the financial analysis done by our team, we found that the assets available with
MARKFED are underutilized, which means that MARKFED certainly has the capability to explore new
business areas. Exploring a new business area could require significant investment, however since
MARKFED already owns significant amount of assets, the investment requirement would be relatively
low.
❖ MARKFED could:
Liquidate some its land holdings or unused godowns and use the cash towards the new business area.
This would save the maintenance costs being spent on the unutilized godowns or land holdings and put
the amount to better use.
❖ Logistics Planning and Scheduling:
Strengthening the process of proper logistic planning and scheduling to avoid cost incurrence due to
dead freight.
❖ 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.

❖ Centralized demand management:

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.

6.3.7. Proposed ECO System for Supply Chain Management

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

Tracking & monitoring & Knowledge Advisory Enabling common platform


Inspection
• Provide regular • Farmers related query
• Tracking of pesticides & advisories to • AI & ML Technologies
fertilizers sold farmers for better • Grievance Redressal
• 3 Stages of productivity of • Crops Information
Authentication of crops
Damage Crop • Alerts &
Notifications

Figure 36 Recommended ICT Based ECO System for MARKFED

Recommendation Modules for Overall Products & Services Improvisation of MARKFED

❖ Online Market Place


❖ Organic Farming
❖ Weather Information Management
❖ Crop-Identification/Production Module
❖ Post-Harvest Storage
❖ Farm Machinery
❖ Irrigation Module
❖ Soil & Survey Management
Page 57 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

❖ Scheme subsidy Management


❖ Land Bank Modules
❖ Agro Process Management
❖ Supply Chain Management
o Fertilizers
o Price Support System (PSS)
❖ Information & Extension management
❖ Supply for Licenses renewal/Cancellation
❖ Formers & Dealers Registration
❖ Farm Credit & Insurance
❖ Testing & Quality
❖ Knowledge Management

1. Components of an Agri supply chain

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.

Following are the components to be organized Agri- supply chain:

➢ 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

2. Fertilizer Products Distributions

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

➢ Number of Private dealers retailers’ division wise


➢ Number of Private dealers retailers’ division wise which whom MARKFED is already associated and the
reason/root cause of such long association
➢ Number of Private dealers/retailers not associated with MARKFED along with the reason/root cause.
Summarizing & analyzing the reason/root cause for probable action plan, which would help MARKFED to
increase the base/association with private dealers/retailers, which in turn would lead to increase in sale
volume and reach to farmers.

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

Cooperative Societies under MARKFED

➢ 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

Cooperative Societies under MARKFED

➢ 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

to procure fertilizer from the Cooperative societies under MARKFED

4. Fertilizers Demand & Supply

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

considering the following:

Page 59 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

➢ Total Volume of Fertilizer sale in the respective Cooperative Society zone

➢ % Sale of Cooperative Society in the Total volume of the zone

➢ 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,

which may also lead to increase in sale volume.

5. Products Sale Improvisations

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

6. Strengthening the process of receivable collection

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

7. Price Support System (PSS) of MARKFED procures Items

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

unattended for the following:

➢ 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

➢ Devising strategy for procurement share in those Mandi at MSP

8. Products Purchase volumes improvisation

In order to increase the purchase volume, MARKFED need to analyze the following for the Mandis attended

under the District Administration.

➢ 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

increase in the procurement volume

9. Strengthening the process of capacity utilization at owned/hired godowns

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

utilization of own godowns nearby was low.

Page 61 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

10. Strengthening process of warehouse operations

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

appropriate action plan

➢ 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

lead to loss of item

➢ 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,

Oil seeds etc.), any shortage/damage needs to be debited to transporter

➢ Aged inventories need to be analyzed for reason/root cause of its lying-in godowns along with appropriate

action plan and its review mechanism by appropriate authority

➢ Insurance to be taken timely by MARKED in accordance with the stock level, in order to avoid risk of any

uncertain event or open exposure

11. Logistics scheduling & planning

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

on freight cost due to dead freight.

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

liquidated damage clause for such delay in delivery.

13. Centralized demand management

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.

Outcomes of centralized demand management:

➢ 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.

14. Improve supply efficiency

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

15. Remodel storage and supply

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-Level warehouse classification model

Central distribution center will be the


primary go down where all the stock
provided by the central govt. Will be
stocked

The fertilisers will be distributed


along with tracking to level
storage hubs according to their
demand.

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

Figure 37 Remodel Storage Supply

Page 64 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

16. Warehouse management system (WMS)

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.)

WMS Inbound and TMS


outbound logistics
Or der picking and fulfilment (cross docking, Freight management
Inventor y tr acking load building, Carrier rating
Shipping and r eceiving palleti ation, Route, mode and car r ier
Labour management scheduling, etc.) optimi ation

Figure 38 Proposed Warehouse Management System

Page 65 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

17. Introduce performance measurement in the entire process

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

CAPACITY BUILING & CHANGE MANAGEMENT


7.1. Observation of Capacity Building & Change Management
We have conducted the Survey for the MARKFED Employees according to survey report 64 Employee has
appeared and we have found these points are in below: -

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.

Figure 39 Training Survey Report

Page 67 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

Figure 40 MFMS Training Survey

Figure 41 Computer Knowledge Survey

7.1. Recommended Training for Capacity Building & Change Management

➢ Training rules- stated in staff service rules

➢ Training modules:

BDO has come up with various training modules for several departments which are:
1. Engineering

2. Accounts

3. Development/ Quality Control/ Purchasing (Inputs)

4. Personnel & Administration

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.

3 Development/ Quality Control/ Purchasing (Inputs)


Designation Training Required Competencies
Development Officer Preparation of DPRs, Negotiation Skills, Administration
(deputation), Purchasing Chain Management, Godown Competency, Business
Officer, Purchasers, Deputy Management, In terms of Development Skills,
Manager (Quality Control), Administration, Business Management Procurement Mechanism,
Manager (Quality Control), Skills for Procurement and Distribution, Communication Skills,
Quality Analyst. Lessoning with Contractors, Quality Fertilizer Aspects
Checking

4 Personnel & Administration


Designation Training Required Competencies
Senior Manager (Personnel & Communication Skills, Team Building, Communication Skills,
Admin), Managerial Cadre, Motivation, Managing Labour, Labour Leadership Quality, Team
Area Manager. Laws, Coordination Skills, PF/ESI & Building Skills, Human
related aspects, Orientation on the Resource Development
magnitude of work in other skills, Supervisory Skills.
departments, Supervisory skills to

Page 69 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

manage the field level staff, Drafting/


Noting Skills and File preparation

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

7.2. Service Condition during training


➢ Every employee/ workman unless specifically exempted by the appointing authority shall undergo a
period of training as decided by the appointing authority. While undergoing training, the employee/
workman shall be deemed to be on duty for pay and allowances, leave, increment, etc.
➢ Every employee/ workman undergoing training at the cost of the Federation shall execute an
agreement with the Federation to serve the Federation for a period of not less than # years from the
date of completion of the training. If the employee/ workman resigns from the job within the
stipulated period, the cost of training and salary and allowances paid during the training shall be
recovered from the employee/ workman unless otherwise exempted by the appointment authority.
➢ Failure to complete the training successfully shall amount to major misconduct.

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

8.1. Observation on upcoming software implementation


Due to the very short time 21 days of the assignment, we have analyzed the high-level understanding of the
software module which in being developed for MARKFED dept.
1. System Integrator developing three modules.
2. Finance & Controlling (FICO) Fully Implemented
3. Material Management (MM) Partially Implemented

8.2. Recommendation points for IT Implementation Monitoring Process


4. The MARKFED Department should form an IT Project Management Cell to oversee the development of
software.
5. Implementation Agency should submit documents such as FRS, SRS, UAT, FAT, and Implementation
Agency will also be responsible for internal review of the which will developed take the final acceptance
from the MARKFED department.
6. The MAKRFED department should review and evaluate the documents which the System Integrator will
submit.
7. After all these parameters to be covered then Go-live will declare by the MARKFED dept.
8. Once the software system is Go-live, it is recommended that the MARKFED Departments extend the
operation and maintenance phase.
9. The system integrator will continue to provide services till the ERP System will be stable.

Recommendation of Leveraging Technology to Improve Overall Efficiency

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

8.3. Functional Architecture


In order to achieve the overall objectives, we have proposed functional architecture. While the technology
forms the backbone to deliver the intended results, it is equally important to craft an optimized functional
flow. The diagram below summarizes the MARKFED at one place.
Below functional architecture is based on service layered component-based model. Each of the components
used in the solution addresses specific functionality.

Figure 42 Functional Architecture

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

ANNEXURE I: GOOD PRACTICES – OTHER STATES

Our Good
MARKFED Practices
Gujrat Approach
MARKFED
Tamil Nadu

MARKFED
Kerela

MARKFED
Punjab

Figure 43 Good Practice

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

10.3. Tamil Nadu


➢ Distribution of fertilizers, pesticides, seeds, and agricultural implements.
➢ Manufacturer of fertilizers
➢ Has fertilizer mixing units
➢ Storage Godowns & Cold Storages
➢ Engaged in agricultural marketing
➢ Sale of IKSL products up till 2020
➢ Engaged in cattle feeding business
➢ Distribution of petrol, diesel & kerosene

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

ANNEXURE II- INDECATIVE QUALIFICATION & ELIGIBILITY

1. Profile: GENERAL MANAGER (LEGAL)

Reporting Manager: Secretary

Department- Legal

Roles and Responsibilities.

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.

2. Profile: DEPUTY GENERAL MANAGER (legal)

Department: Legal

Reporting manager: GENERAL MANAGER (Legal)

Roles & Responsibilities

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.

3. Profile: Manager Legal

Department: Legal

Reporting manager: DEPUTY GENERAL MANAGER (Legal)

Roles & Responsibilities

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

4. Profile: General Manager (Operations)

Department: Operations

Reporting Manager: Secretary

Roles and Responsibilities


o Develop comprehensive strategies for recruitment & promotions according to the human capital needs
& prepare HR budget and HRP reports on an annual basis.
o Develop comprehensive and cost-effective compensation and benefit plans for the employees
o Effectively communicate the organi ation’s goals, missions and objectives to the employees and
determine the KPIs for each department
o Develop and implement the policies & procedures for the department according to the service staff
rules.
o Ensure that staffs utilize IT gear and frameworks and promote a money-saving advantage cognizant
culture with respect to interest in IT, guarantee permeability of IT consumption and resources.
o Improving processes which facilitates everyday operations from maintenance requests to preventative
activities using current available technologies.

Requirements

o Postgraduate with Operations/Human resource/personnel/MTech/CS.


o Must possess a valid certification in IT field/B.Tech.
o Experience of 8-10 years in relevant field (Agriculture would be preferred)
o Excellent communication/ interpersonal skills and strong Problem-solving skills
o Experience with HR planning/budgeting.
o Excellent knowledge of HR systems/processes with advance MS Office and analytical software.

5. Profile: DEPUTY GENERAL MANAGER (e & a)

Department- E & A

Reporting Manager- GENERAL MANAGER (Operations)

Roles & Responsibilities

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.

6. Profile: DEPUTY GENERAL MANAGER (IT)

Department- IT

Reporting Manager- GENERAL MANAGER (Operations)

Roles & Responsibilities.

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

7. Profile: DEPUTY GENERAL MANAGER (HR)

Department- HR

Reporting to- GENERAL MANAGER (Operations)

Roles and Responsibilities

o Conduct performance reviews and appraisals.


o Handle employee life cycle from onboarding to exit in collaboration with the Talent Acquisition team.
o Documentations of employees’ credentials.
o Assist in formulation and implementation of HR policies across the organization.
o Maintain Employee database with HR systems.
o Responsible for manpower planning, budgeting, & analysis.
o Prepare HR reports and dashboards for strategic HRM.
o Identify Skill gaps with need analysis and coordinate training programs to close skill/ knowledge gaps.

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.

8. Profile: Civil/refrigeration engineer

Department: Engineering

Reporting Manager: GM (operations)

Roles and Responsibilities

o Attend the monthly meetings convened by DRCS/DDA/Secretary/DCCB


o Shall fix godown wise target for sale of fertilizers in bottom-up approach keeping in view the receipt
& sale of fertilizers in the past 3 years prior to beginning of each crop season
o Prepare annual budget for the Projects under his jurisdiction & submit to the superior well in advance
i.e., before the next financial year.
o Prepare receipt and expenditure statement for projects under his jurisdiction and submit to the
development officer
o Responsible for proper utilization of funds in his office as well as in the cold storage and ensure that
no extra funds are kept
o To overlook into renovation/construction/repairing work taken up by MARKFED in his area and report
the shortfall if any, to the HO.

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.

9. Profile: General Manager (F & A)

Department: F & A

Reporting Manager: MD

Roles & Responsibilities

o Inspect policies and procedures approved by MD


o Clarify tender procedures
o To keep accounts of general administrative expenditure, Sanction of miscellaneous and recurring
expenditure, Approval of payment and expenditure orders, Introspecting the revenue and expenditure
reports
o Revision of payroll rates regularly
o Contracts approval/ approval of modification/ amendments in civil contractors including
enhancement of work completion & rate basis of evaluated technical estimates
o Preparation/ approval of annual financial records & reports & annual/monthly budget for the
company
o Analyse and provide advice related to MOUs, tender documents, and Contracts and prepare Annual
audit plan
o Compile and evaluate financial data to create financial statements, such as monthly and annual
financial statements in accordance with established rules and procedures.
Requirements

o Postgraduate Specialization in Finance


o This post requires an experience of 8-10 years in agricultural industries preferably
o The person must be familiar with maintaining accounts and budget planning
o Must possess analytical and investment skills
o Candidate must be adaptive towards dynamic market changes and capable of strategizing accordingly
o The person must be a quick decision-maker and long-term planner.
o Knowledge of the Microsoft Office suite as well as certain accounting applications.

Page 83 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

10. Profile: DEPUTY GENERAL MANAGER (F & A)

Department: F & A

Reporting manager: GENERAL MANAGER (Finance)

Roles & Responsibilities

o To keep accounts of general administrative expenditure


o Sanction of miscellaneous and recurring expenditure, approval of payment and expenditure orders &
introspecting the revenue and expenditure reports.
o Preparation/ approval of annual financial records & reports & preparing annual/monthly budget for
the company.
o All additional reporting requirements, such as quarterly forecasts and other reporting as needed by
management.
o Prepare individual, trust, partnership, and corporate income tax returns & manage all direct and
indirect taxation issues for the whole group.
o Ensure that all receivables are recovered on time, including PPA revenue billing.

Requirements

o The candidate must be graduate & specialization in Finance/B.com/CA.


o This post requires an experience of 5-6 years in agricultural industries preferably
o The person must be familiar with maintaining accounts and budget planning
o Must possess analytical and investment skills
o Candidate must be adaptive towards dynamic market changes and capable of strategizing accordingly
o The person must be a quick decision-maker and long-term planner.

11. Profile: DEPUTY GENERAL MANAGER (AUDIT).

Reporting to- GENERAL MANAGER (F & A)

Department- Audit

Roles and Responsibilities

o Execute audits as per the Annual audit plan.


o Conduct pre-audit preparations for smooth functioning during the audit process.
o Discover discrepancies in the data provided during the audit process and report immediately to the
required personnel.
o Analyse and provide advice related to MOUs, tender documents, and Contracts.
o Regular checking of Books of Accounts and other financial records and prepare annual/ quarterly audit
reports.

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.

12. Profile: MANAGER (ACCOUNTS).

Reporting to- GENERAL MANAGER (F & A)

Department- Accounts

Roles and Responsibilities

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

o Graduate in B.com/ certified CA.


o Must possess knowledge in accounts, auditing, taxation, general accounting.
o 4-7 Years of experience in the relevant field is a must.
o The candidate must be a certified accountant.
o Proficiency in MS Office, Analytical Software.
o Excellent communication and analytical skills

Page 85 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

13. Profile: GENERAL MANAGER (Development)

Department: Development

Reporting Manager: MD

Roles and Responsibilities

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

o Postgraduate with specialization in Supply Chain Management/ Logistics/ Marketing.


o This post requires 8- 10 years of work experience in the agriculture industry preferably.
o The Favourable Candidate must possess well developed communication, leadership, and coaching skills.
He/ she must be an independent strategist, Self-motivated, Self-Managing individual.
o Prior knowledge in Marketing and strategy formulation is favourable and able to navigate through
problems with confidence and ease.
o The capability of working under pressure & achieve targets based on the guidelines of the companies’
goals. Open to receiving feedback about the current performance and sees to improvement.
o The candidate must possess good analytical skills & be updated with the latest technology. Adaptive
towards the dynamic market changes and capable of strategizing accordingly.
o A quick decision-maker with good industrial relations and networking and must be familiar with
economic and fiscal planning.

Page 86 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

14. Profile: DEPUTY GENERAL MANAGER (Quality Control)

Department: Quality control

Reporting manager: GENERAL MANAGER (Development)

Roles & Responsibilities

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 Graduate with specialization in Supply Chain Management/ Logistics.


o This post requires 5- 7 years of work experience in the agriculture industry preferably.
o The Favourable Candidate must possess well developed, communication, leadership, and coaching
skills.
o The candidate must possess good analytical skills & be updated with the latest technology.
o Adaptive towards the dynamic market changes and capable of strategizing accordingly.

15. Profile: DEPUTY GENERAL MANAGER (Procurement, SALES & DEVELOPMENT)

Department: Procurement, Sales & Development

Reporting Manager: GENERAL MANAGER (Development)

Roles and Responsibilities

o Supervising all the activities of the projects undertaken by MARKFED.


o Negotiating contracts and maintaining good industrial relations.
o Coordinate and keep a check on the gaps in the MARKFED for future Tenders proposals.
o Attend the monthly meetings convened by DRCS/DDA/Secretary/DCCB
o Shall fix godown wise target for sale of fertilizers in bottom-up approach keeping in view the receipt &
sale of fertilizers in the past 3 years prior to beginning of each crop season
o Prepare annual budget for the cold storage under his jurisdiction & submit to the superior well in
advance i.e., before the next financial year.
o Prepare receipt and expenditure statement for cold storage under his jurisdiction and submit to the
development officer
o Responsible for proper utilization of funds in his office as well as in the cold storage and ensure that no
extra funds are kept
Page 87 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

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

o The Person should have a Diploma/Undergraduate Degree in a relevant field.


o This post requires 5-7 years of work experience in the agriculture industry.
o Manage inventory and merchandise data
o Establishing E-procurement in the organization and ability to prepare technical plans by giving sharp
attention to details.
o Excellent communication skills and leadership quality and open to receiving feedback regarding current
performance and seeks to improve.
o Prior knowledge in Marketing and strategy formulation is favourable.
o The capability of working under pressure & achieve targets based on the guidelines of the companies’
goals.
o Open to receiving feedback about the current performance and sees to improve.

16. Profile: District MANAGER

Department- Development

Reporting Manager – DEPUTY GENERAL MANAGER (Procurement, Sales & development)

Roles and Responsibilities

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

o Graduate from a recognized university.


o The candidate must possess advanced computer skills.
o Experience in agriculture background would be an added advantage.
o Good communication skills
o Prior experience of 7-9 years.

17. Profile: DEPUTY GENERAL MANAGER (AUDIT)

Reporting to- GENERAL MANAGER (F & A)

Department- Audit

Roles and Responsibilities.

o Execute audits as per the Annual audit plan.


o Conduct pre-audit preparations for smooth functioning during the audit process.
o Discover discrepancies in the data provided during the audit process and report immediately to the
required personnel.
o Analyse and provide advice related to MOUs, tender documents, and Contracts.
o Regular checking of Books of Accounts and other financial records and prepare annual/ quarterly audit
reports.

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.

Page 89 of 90
Study Report on Business Re-structuring of MARKFED, Odisha

WHAT MATTERS TO YOU,


MATTERS TO US.

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

You might also like