This document summarizes the sourcing and supply chain operations of Pazhamuthir Nilayam stores. It outlines that vegetables, fruits and food grains are sourced from local farms and mills and packed under the Pazhamuthir brand. FMCG products use both direct sourcing from manufacturers and third party logistics. The stores utilize a central distribution system and Pazhamuthir-owned vehicles for transport. Reverse logistics involves suppliers taking back defective goods.

1. Presented by,
Siva S (12AA41),
Vipin (12AB),
Periyaponnan J (12AA29)

2. Sourcing – Vegetables, Fruits
 Carrots, Capsicum, etc. are sourced from farms of
Mettupalayam, Ooty, etc.
 Coconuts are sourced from nearby areas like Pollachi
surroundings, etc.
 Most of the vegetables are purchased from agents.
 Own farm grown veggies could be brought to the store
and on decision of the Purchase manager, they are
taken.
 CDS – Common Distribution System – Common
warehouse for all 4 stores at Ramanathapuram, Race
Course, Karur, Pollachi.

3. Supply Chain – Vegetables, Fruits
Farm Agents
Central
Distribution
System
Retail
Store
Customer

4. Sourcing – FMCG Products (1 of 2)
 Same suppliers for Ramanathapuram and Race course
stores.
 Separate suppliers for Karur and Pollachi stores in the
local.
 Supervisors and employees check for stock on regular
basis.
 Supplier representative will also check for stock to
refill.

5. Sourcing – FMCG Products (2 of 2)
 Goods are classified into weekly, monthly, etc. based
on longevity (i.e. period till it stays fresh) and stocked
accordingly.
 For example, Milk and milk products fall under daily
category and inventory is checked and refilled daily.
 Some other products whose life is less is also sourced
directly from the manufacturers.
Example : Idly, Dosa batter, Readymade chapati, etc.
 Two types of supply chains are witnessed.

6. Supply Chain – FMCG
Manufacturing
company
C&F* Agency
Retail
Store
Customer
 Products such as packed biscuits, soaps, shampoos,
etc.
 Milk, honey, Idly, Dosa batter, etc. Single product
producers also deliver directly to the store.
Manufacturer
Retail
Store
Customer
*C & F – Carry and Forwarding agent

7. Sourcing – Food grains and Pulses
 Food grains and pulses are sourced from mills of
Kangayam, Tirupur region.
 The items arrive to the store in big bags, which are
segregated and packed in small 500 g, 1 kg, 2 kg, 5 kg
packets.
 Branded as Pazhamuthir products.
 Packing unit is at behind SNS College, Kalapatti.

8. Supply Chain – Food grains and Pulses
Farms Mills
Packing
unit
Retail
Store
Customer
50 kg, 100 kg
(unbranded)
500 g, 1 kg, 2 kg, 5 kg
(Pazhamuthir brand)

9. A picture of packed, ‘Pazhamuthir’
branded product

10. Logistics
 1PL – used by Suppliers of FMCG goods, food items,
etc. Sometimes perishables also.
 2PL – used by door delivery concept of Pazhamuthir
vehicles i.e. Pazhamuthir owned vehicles.
Also during purchases of whole sale items.
 3PL – Third party logistics is used sometimes by the
suppliers.
 There are more than 50 suppliers to Pazhamuthir
Nilayam according to Purchase manager.

11. Vehicle dispensing Veggies and
fruits at Pazhamuthir

12. Pazhamuthir owned vehicle
(1 of 2)

13. Pazhamuthir owned vehicle
(2 of 2)

14. Reverse logistics
 Defective goods if identified are separated and are
picked by the dealer itself when he visits the next time.
 Quantity, Price, etc of the goods are verified and
checked if the quantity mentioned in the invoice
matches and then cheque is issued to the supplier.
 Cheque is duly filled by the purchase manager,
checked by the G.M and signed by the M.D.

15. References
1. Suyog Sadanand Shembekar. (Oct 15, 2010). What is
the difference between 1PL, 2PL, 3PL, 4PL and 5PL
logistics. Available from:
http://www.scribd.com/doc/39393553/What-is-the-
Difference-Between-1PL-2PL-3PL-4PL-and-5PL-
Logistics. [Accessed: 29/8/2013].