Bihar State Cooperative Milk Federation (COMPFED) was marketing its milk and milk related products under the brand name Sudha in Bihar and Jharkhand region of India for three decades. They operated through six unions and two dairy milk processing, taken from about 4,000 cooperatives at the village level. At first glance, it seemed, COMPFED have a competitive advantage for their milk supply, as it supports the largest network for milk procurement, which covers a wide geography for the two regions, and was unbeaten in its competitors. However, due to various environmental forces, the ability to provide an adequate supply decreased in the last two years, which had a negative impact on the overall profitability of marketing manager organization.The COMPFED was a difficult task to service the growing demand and maintain profitability. Because he works in an industry with high fixed costs, reducing the supply of milk procurement means lower sales. As a result, there was no way to significantly reduce operating costs in line with reduced supply.The marketing manager thought of two reasons for this in an environment that contributed to this situation. First, a number of continuous flooding was damaged by grazing and cattle operation in many villages, which have been a source of milk. Besides, private players were violations of the supply chain, offering short-term benefits above certain suppliers / farmers from time to time. These players do not face the same regulatory hygiene recommendations made COMPFED and work outside of normal infrastructure. His options are on two very different alternatives. Trying to work with these agents or provide a process to minimize or eliminate their activities "Hide
by Atanu Adhikari, Subhash Jha Source: Richard Ivey School of Business Foundation 19 pages. Publication Date: March 16, 2012. Prod. #: W11822-PDF-ENG
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