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Supply Chain Management

Supply Chain Management

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A summer project report On Supply Chain Management

At BILT Unit SEWA

Ballarpur Industries Limited Unit: Sewa
An ISO 9001 Certified Company
Gaganapur, Jeypore ± RS ± 764002, Dist.: Koraput (Odisha) Telephone: 06854 ± 230227, 230220, 9777469596/597/598/599, Fax: 232931

Registered Office: Ballarpur, Dist. Chandrapur, Maharastra (India)

Report Submitted By: - Pinaka Sahu

A SUMMER INTERSHIP PROJECT REPORT ON SUPPLY CHAIN MANAGEMENT AT
At BILT Unit SEWA

Ballarpur Industries Limited Unit: Sewa SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWAARD OF THE DEGREE OF M.B.A (MASTER OF BUSINESS ADMINISTRATION)

B.P.U.T (2009-2011)
Submitted By:Pinaka sahu Regd No. -:0906272074 ACADEMY OF MANAGEMENT STUDIES BHUBANESWAR Under the guidance of
Mr Anil Mishra (Faculty of Marketing, A.M.S, BBSR) Mr. Shiva Prasad Pattnaik (Asst. Manager-MSD, BILT Unit SEWA)

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CERTIFICATE
This is to certify that this project work entitled is submitted by Mr. Pinaka sahu Registration No.0906272074 under my guidance. This report the standard of fulfilling the requirement for the award of Master In Business Administration. I also certify that the matter embodied in this project is original and has not been submitted before for the award of any other degree.

I wish him success in future endeavour.

Prof. Anil Mishra Faculty-cum-Internal Guide (Marketing)

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DECLARATION

I do hereby declare that the project report on the topic ³ Branding in BILT , JEYPORE ³ is submitted by me to the master of business administration of A.M.S ,Bhubaneswar in partial fulfilment of the requirement M.B.A degree of B.P.U.T .Under the guidance of Prof Anil Mishra is my own work and submitted to any other institute or published anywhere before.

Date Place (PINAKA SAHU)

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I Pinaka sahu take the Opportunity to introduce the reader to the outline of my Project on Supply Chain Management at BILT Unit SEWA. This 8 weeks period which started from 26th of July 2010 to 4th of September 2010 gave me an in depth exposure in the field of Paper Manufacturing. ACKNOWLEDGEMENT 5 . During my project my main focus was to get maximum real work life experience which can help me in long run and I am satisfied that I have achieved the Target.PREFACE The objective of training is to help the student understand business environment well and equip themselves with the work culture of companies in the present era.

Project work is never the work of an individual.³Words often fail to express one¶s inner feelings of gratitude and indebtedness. BBSR and my Project Guide Mr. Shiv Pattnaik. constant advice and granting personal freedom in the course of this work. but it is the only readily available medium through which the undersigned can express their sincere thanks to all those who are associated with the work in any ways or other´. Thus one of the most pleasant parts of writing this report is the opportunity to thank all those who have contributed towards it. Bilt Unit SEWA for their excellent guidance. Manager. This project also bears the impact of many people. MSD. I would like to express my sincerest gratitude to my faculty guide Mr Anil Mishra. Faculty A. suggestions.S. Pinaka Sahu TABLE OF CONTENT 6 . it is more a combination of views. Asst.M. contributions and involving many individuals. A project can never exist and thrive in solitude.

Declaration Preface Acknowledgement Table of Contents Executive Summary Introduction To Industry Introduction To Ballarpur Industries Ltd Profile of the Company (BILT Unit SEWA) Need of Study 03 04 05 06 07 08 13 25 34 35 39 40 58 60 73 75 76 77 81 Literature Survey Objective Supply Chain Management Research Methodology Data Analysis Observation Suggestion Conclusion Questioners Bibliography EXECUTIVE SUMMARY 7 .

Efforts have been made to interconnect and establish a relationship in between both the theoretical as well as practical aspects of Supply Chain Management in Context with BILT Unit SEWA.The competitive and global nature of today¶s business environment dictates that this direction and transformation takes place in a way that is efficient and effective as possible. Purchasing. The report gives an overview of the Indian Paper manufacturing Industry. Organizational Structure. cost and quality improvements have sharpened the need to coordinate and cooperate with trading partners around the world to achieve results that allow customers to be successful. (BILT). INTRODUCTION TO INDUSTRY 8 . and the various objectives and analysis. Production and Transportation. services. Logistics is an Important Part of Supply Chain management. This report also provide ample of information regarding Ballarpur Industries Ltd. growth and outlook. Products and some HR related data of the Organization. its workings and benefits. the Conglomerate AVANTA Group of which BILT is a Strategic Business Unit. its various aspects and the functions of Logistic Department. people. This report also includes practical implications to understand how supply chain is being managed in BILT Unit SEWA by taking into account six major elements of Supply Chain Management Customer. facilities and other resources. it contains the History. Inventory. Though the project work has been done in UNIT SEWA of Ballarpur Industries Ltd. its major players. This report provides an analysis of the Internal as well as External situation of BILT in the form of SWOT Analysis and PORTER¶S FIVE FORCES Model. Continuing emphasis on time. The Report contains the literature review of Supply Chain Management. its importance in current competitive business scenario. equipment. Planning. Thus Supply chain management focuses on the integration of activities across several companies to manage the flow of products. There are many elements which form a backbone of Supply chain management and Supply Chain Management Technology is one of them. So efforts have been made to give a brief idea about OPTIVISION (Technology BILT uses in its Supply Chain). so this report also covers some basic ideas of Logistics.

Production use from 3. The economic reforms coupled with the liberalized Government Policies.The Indian Paper Industry is among the top 15 global players today. called for by the demand projection is possible only by expansion of existing capacity and creation of additional capability. 10. the paper industry made rapid progress.000 millions. 9 . newsprint etc. During the period of planned development. One of the first FDI Projects may come through the proposed Finnish proposal to set up a 400. 150. Attracted by high profits under the protective tariff umbrella.Paper Industry in India is riding on a strong demand and on an expanding mood to meet the projected demand of 8 million tones by 2010 & 13 million tones by 2020. Since energy cost accounts nearly 25 per cent of cost of production there is an urgency to improve energy management and energy consumption. The expanding Industrial Scenario calls for efforts to tackle related problems:   Industry needs capital and technology. The first mill set up in India more than 100 yrs ago.  Use of agro residues for preparation of pulp also throws up challenges like pollution control.  Quantum jump in production. with an output of more than 6 millions tones annually with an estimated turnover of Rs. recycling. The industry operated under a Protective tariff since 1925.5 lakh MT in 1960-61 to 31 lakh MT in 1997-98 the production of newsprint rose from 0.000 TPA capacity plant with an investment of US$240 million. paperboard. The Indian Economy is progressing well and targeting 8%+ growth. India¶s forest providing abundant raw arterial for its smooth working.4 lakh MT to 4.A large number of expansion programme & expansion of capacities with an outlay of Rs. (approx. Up gradation of technology and new capacities also involve massive investment. etc. India today offers excellent business opportunity for investments. many new paper industries were set up.000 crores have been announced covering the various sectors like paper. use of cost effective technology for utilization of agro residues.6 lakh MT between 1961 and 1998. USD 3400 million).

Major Players 10 .

Plant Locations all over India Growth of paper industry in India 11 .

the use of cheep second hand machinery readily available in foreign countries. which are too small and too moderately equipped. wheat. the small sector now account for 50 percent of the installed capacity and of production of paper in the country. The last decade witnessed a phenomenal growth in the small paper sector (a small paper mill. actively promoted by the Govt. came to appreciate the role of small paper units because of the short gestation period. The small units could be set up in any part of the country and would have an important role to play in backward areas. has installed capacity of 24000 MT per annum). straw. the Govt. their cost was high and their quality was low. the Govt. The Govt. There are about 30 units are of diverse size. In order to ensure that these mills exist along with large paper mills. To some extent. gave various excise concessions and relieves from time to time and as 741 mentioned earlier. As a result. 12 . and about 30 large integrated mills.300 Crores of foreign exchange annually. when the country was faced with paper famine.There are at present 340 units producing paperboard in the private sector with installed capacity of 31 lakh MT. Rapid Growth of Small Units In the early 1970s. well organized and well equipped and there are about 270 small units. gave necessary fillip and encouragement to technocrats and entrepreneur¶s to venture into the paper industry and the investment funds came easily from the public sector financial institutions such as the IDBI. jute stalks and waste papers. biogases. the small paper mills have grown so rapidly that they account for 50 percent of the installed capacity as well as of annual production. the small units were uneconomic. type and magnitude. IFCI and the ICICI. the use of non-conventional raw materials such as rice. The small paper units went to production and averted the paper crisis and also the need to import paper and paperboard and thus have helped the country to save Rs.

13 . Revision of forest policy is required for wood based paper industry so that plantation can be raised by industry. cooperatives of farmers.Following measures need to be taken to make Indian paper industry more competitive: y y Improvements of key ports. like. tissue paper. etc. roads and railways and communication facilities. y y Import duty on waste paper should be reduced. tea bags.. filter paper. medical grade coated paper. Duty free imports of new & second hand machinery/equipment should be allowed for technology up gradation. light weight online coated paper. Outlook Outlook for paper industry in India looks extremely positive as the demand for upstream market of paper products. and state government. is growing up. Degraded forest land should be made available to the industry for raising plantations.

In recent years. A concerted programme of innovation and technological excellence helps it proactively respond to the needs of each individual segment. industrial paper and specialty paper. brought 32. with a strong presence in all segments of the usage spectrum. BILT is committed to developing its business towards ecological. is the undisputed leader of the Indian paper industry. any place. education and strengthening of the village panchayat system through training of members on issues relating to governance. Community development and upliftment of the marginalized sections have been identified as focus areas. BILT. Today. any time. has helped established Self Help Groups (SHGs) at the village level to implement its social programmes. including writing and printing (W&P) paper. BILT not only has the range.000 hectares under plantation. 14 . The company works extensively with the communities on a broad range of issues. It is India's largest manufacturer and exporter of paper. As the industry leader. part of the US$ 3 bn Avantha Group. which has. In the process. an NGO that runs primary education programmes all over the country. social and economic sustainability.Our aspiration is to become a leading creator of Shareholder Value in the Paper Industry. A key initiative in environmental accountability is the BILT farm forestry programme. knowledge-driven organization focused towards creation of stakeholder value. in collaboration with its partner NGOs. It has also joined hands with Pratham. BILT offers vocational training and programmes on micro financing for the unemployed. development. Complementing this is a diversified production infrastructure with six manufacturing units spread across the country. including health. MISSSION STATEMENT -. but also a well entrenched distribution network that enables it to reach customers.000 farmers. to date. and fund management. BILT has evolved as a dynamic. benefitting nearly 37. it has also transformed the paper industry from its traditional 'commodity market' mindset to a branded one.INTRODUCTION TO BALLARPUR INDUSTRIES LIMITED Ballarpur Industries Limited (BILT).

To acquire and apply leading expertise in all aspects of our business Team Performance. Product-mix Rationalization ± Maintaining an intelligent product-mix based on value and demand curves to maximize returns. none of us is as good as all of us STRATEGIC INTENT BILT. knowledge driven organization with a singular focus on creating stakeholders value. Decommoditasation and Service Orientation ± Redefining paper industry with customer at the centre-stage.Giving each person room to contribute and grow Respect for Knowledge. CORE VALUES -Honesty-To be principled.VISION STATEMENT -. the following initiatives are to drive BILT forward in the rapidly changing business environment. Consolidation ± A continuous streaming of capacities and products in our core business area-Paper. Wider Product range .Adapting ourselves to always stay a step ahead of changes Respect for Individual. 15 . Brand Building ± Increasing brand involvement for the products amongst customers to reduce market fragmentation and µgeneric brand¶ status for BILT via strategic branding. straight-forward and fair in all dealings Integrity. in the recent years has evolved as a more dynamic.To consistently outperform expectations and deliver superior value to both our Customers and Stakeholders.Adding high value-added products to BILT¶s portfolio expanding it to cover the widest range of basic to high-end usage paper products. Aimed at making the organization more market-oriented and customer centric.Maintaining the highest standards of Professionalism Flexibility.The team comes first.

Sound Investments .Accelerate growth by way of investments into focused. without losing the economies of scale. 16 . Extending Touch-Points ± Building a wider and µintelligent¶ distribution network that enables BILT to serve its markets in a customized and localized manner and attain higher penetration. Increasing Capacities ± Expansion of manufacturing and processing capabilities across product range. Captive Market Share ± Sustaining and strengthening BILT¶s leadership position in its market segments way ahead of competitors. in line with market dynamics.Exploring Global Markets ± Reaching out to international markets with world-class products while maintaining leadership in India. Operational Improvements & Cost Competitiveness ± To attain higher efficiency levels and worldclass quality in production processes. synergetic acquisitions.

UNIT KAMALAPURAM 5. UNIT SEWA 4. UNIT BHIGWAN 6.Unit Locations all over INDIA 1. UNIT ASHTI 17 . UNIT SHREE GOPAL 3. UNIT BALLARPUR 2.

Australia and Europe. Easy Print. BILT is the leader in the Indian paper industry with an impressive annual production of 50. BILT¶s product process is supported by 7 world class manufacturing facilities the use the latest equipment along with stringent quality control processes. 18 . BILT produces the finest varieties of paper that have already made a mark in more than thirty nations across the globe including developed countries market like USA. Undisputed market leadership combined with the largest distribution network and commitment towards customer care ensures that there is BILT IN EVERY PAPER. In housing R&D based on long standing experiences and expertise in papermaking has enabled BILT to be brand of choice. Copy Power  5.PRODUCTS OF BILT BILT provides for all major and usage¶s ranging from world class coated paper for catalogues and calendars to hi-speed uncoated printing paper from water market premium business stationary to hi-end copy used in office and folding box of packaging. which have become generic to their category.  1. Sunshine Super Printing  3. BILT provides paper for all major end usage¶s ranging from world class coated paper for catalogues and calendars to hi-speed uncoated printing paper. The BILT Products range comprises of the following brands. Royal Executive Bond  4. BILT Royal  2. 0000 MT. from water marked premium business stationary to hi-end copy paper used in offices and folding box boards for packaging.

SWOT Analysis of BILT Strength (S) y y y y y y Maximum Varity & high quality Of Paper Good Employer-employee Relationship Efficient management Totally Computerized CSR by keeping Environment clean Strategic Location for easy availability Of Raw material Weaknesses (W) y y y y Large Structure of organization Old Machinery High Fixed Cost Remote Location of Plants y Logistic Issues Opportunities (O) y y y y y 19 Setting up a new plant in central part of India Exploring new overseas market Maximize production capacity by replacing old machinery Decreasing cost by increasing Rail & Water as mode of Transportation Acquiring some weak and poor Paper manufacturing companies .

Threats (T) y y y y Global Warming Raw material Unavailability Increasing Competition Import of Papers ORTER¶S FIVE FORCES MODEL for BILT 20 .

Threat of New Entrants is LOW POTENTIAL ENTRANTS Industry Rivalry is HIGH SUPPLIERS POWER INDUSTRY RIVALRY BUYERS POWER Bargaining power of Supplier is HIGH Bargaining Power of Buyer is HIGH Threat of Substitute is LOW SUBSTITUTES Some Major Dates of BILT 21 .

Names BILT¶s New Group Identity The Gautam Thapar-led Group of Companies. ³The group structure and formalizing it with a group identity is a step towards realizing our defined growth path. today unveiled its new Group Corporate Identity. ³³Consolidation involves coming together as a group. farm forestry.  1883: Modernization of Ballarpur and Shree Gopal Mills initiated. Mr.´ He added. First brand µthree Aces¶ for paper and wisdom for stationary. The new logo was launched at special celebrations held in all Avantha offices worldwide today. leveraging on individual and collective strengths and working together for higher ambitions and market aggressiveness. With a global footprint and operations in ten countries. the Avantha group employs 20. It has successfully gone into uncharted waters and expanded with its winning M&A strategy.000 people belonging to 20 different nationalities.  2000: Business portfolio restructuring completed.  2001: Sinar Mas Pulp and Paper (India) Limited acquired and re-named BILT Graphics Papers Limited (BGPL). The group has 22 . Power transmission and distribution equipment and services. food processing. The identity and logo commemorate nearly six months of work selecting and implementing a new brand identity.  1988: Entry into industrial paper segment.  1992: Choudwar unit acquired. infrastructure. a leading global transnational corporation. IT and ITES. The group is in diverse fields such as Power generation and distribution. Chairman said. The group with presence in more than six diverse business verticals globally is now the ³AVANTHA´ Group.Its pathway through the history can be summarized below:  1945: Ballarpur paper and straw Board Mills Limited incorporated.  1975: Entity name changed to Ballarpur Industries Ltd. Gautam Thapar.  1994: US $ 35 Million FCCB issue launched. paper and pulp.´ This business house established 80 years ago is today known for its future orientation. This over US$ 3 bn group is on course to trebling to US$ 10 bn by 2013.  1969: Shree Gopal Paper mills limited merged with Ballarpur paper and straw Board mills Ltd. chemicals.  1990: SEWA paper Mills acquired.

also adapted to changed environment readily with pioneering.500 engineers have left its portals so far. Thapar University was granted full autonomy and the status of a Deemed University in 1985 UGC. Govt. Every time. AVANTHA is based on a commitment to world class systems and processes and a 360 degrees reputation as a global employer brand. Nearly 10. the group embraced globalization and set forth to acquire both markets and resource bases.´ Mission To provide value at every interaction and not only match but exceed the expectations of our clients. Govt. It symbolizes the organization as a powerhouse of progress. Thapar University has impressively grown in size and activities during the last five decades of its existence. The new group identity ± AVANTHA ± combines French and Sanskrit terms to express ³Growth with stability´. customers. distinguishing themselves as proud Thaparians in diverse fields in our country and aboard. Integrity and Individual. innovating and imagination. ³as the new and emergent global translational. Gautam Thapar explained. Science and Technology Entrepreneur¶s Park (STEP) has been established jointly by Thapar University and DST. impelled by its three fundamentals of Imagination. Mr. Inspired by the lever. A Centre of Relevance and Excellence (CORE) has been set up at Thapar University by TIFAC Mission REACH of Department of Science & Technology. of India in its first phase of setting up eight CORES at various Institutes and Universities spread all over the country. of India. Among the first manufacturing industries to see change as an opportunity. the three-pronged wheel of the Avantha logo is modern and signifies continuous forward movement. employees and stakeholders at any point in time. As a fitting recognition of its pioneering role in promoting the growth and development both at National and International levels. 23 .

Needles to say we follow strict procedures to maintain complete confidentiality and integrity of our customers¶ data.Our offerings include IT infrastructure support management. It also has strong roots in education and research. ITES. engineering. This helps us in attracting and retaining the best talent and thus safeguards your investments & knowledge repository. achievement and a place of honour in the Indian Paper Industry Turn of Paper« 24 . and consulting and business process outsourcing Avantha enjoys an enviable image for its leadership status in IT. Our group strength provides the capacity and capability to help ensure we serve our clients extraordinarily well. Ballarpur Industries Ltd. market leadership. professional and engineering services. and manufacturing domains. In addition our strong business alliance with leading players in this arena helps us in transferring technology to our clients and in helping them to adopt the best technology practices in the industry. Ambulam Color Red« Stands for change.Information Security Management Systems (ISMS). Our backbone infrastructure meets the rigorous standards of ISO/IEC 27002:2005 .

National Level Energy Award BEE (2006). 90% of the Indian playing cards are made on BILT black centered boards.Kamalapuram was adjudged the winner from among 39 companies short listed for the award. much more to come«of times unseen. is the leader in bond paper market. Indian Manufacturing Excellence Award ( 2006 ). It has under taken several progressive measures aimed of creating a brand that is associated with excellent standard available at convenient proximity to the customer. CII Energy Efficient Unit Award (2006).   Bilt has received ASIAN CSR award in the category of poverty alleviation and Golden peacock Global award for corporate social responsibility. unexplored. AWARDS RECEIVED BY BILT        Golden Peacock Global Award for Corporate Social Responsibility by the World Council for corporate Governance. BILT is the market leader in its segment. Australia & Europe. of India. HIV and AIDS for the year 2007-08 by Govt. BILT controls 53% of the Indian coated wood fee paper market and 27% of the Hi-Bight map litho market and. new heights. Green Tech Gold Award (2006) for both safety and environment. while a large proportion of industrial paper for comminutes too is manufactured by BILT. with a 68% shares. TERI Corporate Award has been given to BILT in the field of Immunization. Safety Innovation Award (2006) from safety and quality forum.Shows that BILT is a paper company and speaks of expanding horizons. It has already made musk in thirty courtiers across the globe including developed markets such as USA. The Unit. National Award for Excellence in Energy Management (2007) from confederation of Indian Industries (CII). Ownership: 25 .

85 16. Share holding Pattern PERCENTAGE Shareholding of Promoter and Promoter Group Mutual Funds/ UTI Financial Institutions/ Banks 12.The company is a publicly held organization.69 8.88 Central Government/ State Insurance Companies 17. The majority of the shares are held by the parent company Ballarpur industries Ltd.32 38.71 0.34 5.04 0.17 Non-institutions Foreign Institutional Investors Foreign Financial Institution 26 .

y 27 Raw material like wood. y Good communication helps the unit to function smoothly. Location advantage Under this heading. Jeypore is nearly 600 kilometers away from the states capital Bhubaneswar. Basically. the unit through roadways is able to acquire coal easily for indigenous power production. But there are a few industries in the near by place like NALCO at Damanjodi HAL Sunabeda. A. fax etc. the neighboring states. y y y y Good Tele-Communication facilities through telephone. Due to good transportation facilities. The main river of the district is Kolab on with the hydroelectric project has been designed.P. Bhubaneswar. internet. In addition to these there are some major HYDEL project like the Dumas Hydroelectric project (major one of Orissa) and the Upper Kolab Hydroelectric project. A small airstrip is there for landing of small planes. y Being in a tribal belt. are available here.PROFILE OF THE COMPANY (BILT Unit SEWA) The unit SEWA of Ballarpur industries limited at Gaganpur nearly 8 kilometers away from nearest town Jeypore is a major commercial town in the district of Koraput in south Orissa. though regular services are not there. Electricity is available as per requirement. it is expressed to describe he benefits that the organization is enjoying due to its location moreover the facilities at a particular position are mainly responsible for an organization can neither survive nor can it develop. The following locations facilities are enjoyed by the SEWA paper Mills. . bamboo is cheaply procured from nearby districts. Cuttack and Berhampur etc. because plenty of bus and transportation facilities are available for traveling to Chhattisgarh. The district is directly connected to Chhattisgarh and Andhra Pradesh. Because of availability of forest resources in plenty. Koraput district holds mostly tribal population whose main source of income is agriculture forest byproducts and daily labor. the unit is able to get laborers sufficiently at low wage senior. because of their low cost of living. it is not an industrial area.

The annual capacity was 35 thousand metric tones per annum. In the year 1991 Board for industrial and financial reconstruction (BIFR) 28 . In the year 1991 the BIFR court gave the award for the re-fabrication of the SEWA paper industry. AVATAR VARMA declared as sick unit due to some internal problems. with facilities acquiring of water and disposing. the local community believes that the organization contributes for the betterment of the locality. In the year 1984.S. and due to non availability of spare parts and due to lake of professional personnel. Brief History of the Organization In the year 1980 Mr. The mill was declared sick and at last pulled the shorter of close down in 1987. seal and designation under M/s. As the area is not crowed with industries. basically is an NRI was planned to open the paper industry with collaboration of the Orissa Government and then the Orissa Government given permission to open a paper industry in the district of Koraput and place name is Gaganapur near Jeypore R. SEWA paper mill ltd.C. Koraput that can deal with emergency and acute readily. UNIT-SEWA. The SEWA PAPER MILL LIMITED which was promoted by Mr. Due to the enforced of the local force and the employees and the unions the OLD SEWA Paper Limited was referred to BIFR court order sick industry Act. was in corporate during the year 1981 and the actual production was started during the year 1984. the environmental pollution norms are not very strict and the district administration does not pose a threat for the survival of the plan in this regard moreover. y y Lowland areas are available for the dumping of the solid wastes. was declared as a sick unit during the year 1987. Varma. the production was started and it was lasted up to 1987 October the last part of 1987 the SEWA Paper Mill was closed down due to many reasons like the disconnection of the power by OSEB. Good medial facility is available there at Jeypore and a very good hospital is there at the district headquarters. Ballarpur Industries Ltd. off its effluents into the channel. A. they are co-operative with the organizations.y A channel of river µKolab¶ is passing near the unit. from 1987 to 1990 almost all four years the mill was closed. SEWA paper mill Ltd. In 1990 there was a MOU (Memorandum of Understanding) was signed in between the workers and the management to open the mill in the new style.

Electrical. Bilt is the acknowledged leader in an industry which is all set to boom in the next few decades. His penchant for nursing industries back to business health is today an inherent distinguish trait of BILT and the entire Thapar Group. Bir-technology. the range of activities spread over 54 companies and 84 plants copiers paper. The Thapar group is one of the top corporate long to neuritis in the country today. Fiber. Owens Illinois. JCT. Chemicals. Wetting House. Textiles. in the year 1991& Production was started in the year July 1992. BILT manufactures are 60% of the country¶s value added and specially paper.3. Bengal was his ³Tryst with Destiny´. Glass. He detected invaluable opportunities where others felt deterred by insurmountable obstacles. He rehabilitated it. greaves limited. with an annual growth rate of 25%. His coal mine chain grew so rapidly that when the coal industry was nationalized in our country Thapar was the largest Indian producer of cooking and non cooking coal. The beginning was humble. Leather. Hitachi Mitsubishi. consultancy and Technical Services. It is this corporate mission that begins with coal mining that has flowered today into the Thapar Group¶s wide spectrum of core industries oriented towards nation building. Ballarpur Industries Limited (BILT) is the torchbearer of the Thapar group. and OKI electronics have positioned the group in the global league. The group has a turnover of more than Rs. The founder of this group was the late Lala Karam Chand Thapar. Slowly he became the owner of a coalmine given up a sick by the British. Apart from BILT. one of the most illustrious of the enterprise. Strategic alliances and collaborations with some of best corporations in the world including Dupont. General Electric. Chemtere. Goaded by aspiration very early in life he left Punjab and journeyed. in dauntless quest the challenge of the unknown to Bengal.500 crores. Electronics. Agri Business. The actual production for commercial purpose was started in the year September 1994. 29 . KCT & Bros (CS) Limited and Andhra Pradesh Rayon¶s. Telecommunications. Agriculture. the other main pillars of the group are Crompton Greaves. He started with a small coal agency. Engineering.took over SEWA Paper Mill ltd. and accounts for nearly one fifth of the country¶s overall paper production with a network of fire paper mills including two coating units.

162. Again the situation further deteriorated in the subsequent year 1997-98 and the unit incurred a cash loss of 30 . 436. BILT has carved a rich for itself in the premium market segment. In 1945 these were merged as BALLARPUR INDUSTRIES LIMITED (BILT). Extensive expansion and modernization plans are under ways in technical collaboration and measuring up to Global economies of scale. centrally declared back ward area as based industry in the year 1991 for manufacturing PAPER. co-ordination among these different 4 functional activities has been achieved successful so far.000 tones.290. corporate broachers are printed SUPER IVORY BOARD. The unit went on increasing the production in the subsequent year and incurred losses. personnel. It was subsequent year 1996-97 the situation further deteriorated and the unit incurred a cash loss of Rs. The recent acquisition of the SINARMAS MILLS in PUNE will serve too broader their base.000 tones of paper every year to 5 mills producing more than 3. The unit again slipped back during 1995-96 and has suffered a book loss of Rs.even though it has an improved capacity utilization for various reasons.8 tones per annum during the year 1994-95. with plans to increase production by 200% of the finest quality paper available in India. 70. Today BILT has grown from 2 mills producing 33. corporate executives insist EXECUTIVE BOND for personal stationary. (UNIT-SEWA) as established at GAGANAPUR (JEYPORE) in KORAPUT District. using BAMBOO and HARDWOOD as their main raw materials supported by wasted papers as secondary Raw Materials with a licensed capacity of 2500 tones per month. SUNLITE BOND has become a generic same for good writing papers : SUNLITE CATRIDGE and boards. share certificates insurance policies and Railway tickets are printed on REDFORT POLICY BOND and LUCKY PARCHMENT. The BALLARPUR INDUSTRIES LTD. finance and sales / dispatch / marketing service department (MSD). 311. The unit went into commercial production towards end of JUNE 1994-95 and went for an expansion cum solving programme and completed the same and increased its installed capacity to 15458. high quality and high value specialty papers. BILT story on paper goes back to the 30¶s when the Thapar¶s acquired the SHAREE GOPAL PAPER MILLS in YAMUNANAGAR in HARAYANA.With an emphasis or high technology. The Basic functional areas are production. The floundering mill was soon flourishing. Later the Thapar Group took over the Ballarpur Paper and starboard mills.973/-. a small outfit buried in the forests of CHANDRAPUR in Maharashtra.909/.

4. DM-W. MGR-INST.M AM ± R D DM QAS 1. 6. The major reasons attributed for this loss were due to increase in wages. MGR-MSD 2. increase in transportation tripping resulting in wastage and stoppage of production and higher input costs. DM-YARD DM ± A/CS DM ± R&M SHIFT INCHARGES / OFFICERS MACHIENE OPERATORS EMPLOYEE 31 .381.Rs. DM-CIVIL 2. MGR-ELECT. DM-PUR DGM PDC DGM PDC MGR-PM-P 5.313. MGR-PULP 2. DM-MSD 3.060/-. DM-MSD 4. increase in raw material prices. DM-PM/C.M 3.S. 5. AM-PDC 1. Organizational Structure at BILT Unit SEWA UNIT HEAD (CGM) GM / FACTORY DGM PDC DGM PROD DGMCOMM DGM FINANC DGMP&R DGMQAS DGM-R & M MGR ± R&D DM/AM SAFETY 1. DM-PM/C.

CATEGORY WISE MANPOWER POSITION (SITE) AS ON DATE: CATEGORY UNSKILLED SEMI-SKILLED SKILLED HIGH SKILLED TRAINEES TOTAL NO OF EMPLOYEES 2 101 288 300 5 696 CATEGORY WISE MANPOWER POSITION (FIELD) AS ON DATE: CATEGORY UNSKILLED SEMI-SKILLED SKILLED HIGH SKILLED TOTAL NO OF EMPLOYEES 8 8 10 16 42 32 .

00 P M 10.00 PM to 6.00 PM to 10.00 A M PROFILE OF THE PRODUCT Paper for printing and writing purpose and divided into eight major categories based on their physical properties a follows : News print.00 PM 7.00 AM to 3.00 AM to 5. Coated wood free.SHIFT OPERATION IN THE MILL. 33 . uncoated Bristol¶s coated Bristol¶s and cotton fiber papers. VARITIES OF PAPER COATED HI-BRIGHT CREAM WOVE COPIER BOND NEWS PRINT PACKAGING WRITING AND PRINTING. uncoated wood containing.30 PM 9.30 PM 2. 6. uncoated wood free. coated wood containing. SHIFT A A-1 G-1 G-2 B C - TIMINGS.00 AM to 2.00 AM to 4.00 PM 8.

PAPER MANUFACTURING The basic concept of paper making is quite simple obtaining cellulose fibres. 34 . from a mat of the fibers and extract the water. suspend them in water. STRENGTH WATER RESISTANCE WHITENESS. PHYSICAL PROPERTIES OF PAPER BRIGHTNESS OF PAPER AMOUNT OF SURFACE GLOSS. However the manufacture of paper with characteristics required by the end user is a highly complex process. The paper maker¶s job is to select from a multitude of variables the set of conditions which give a sheet the desired performance present day paper making also required huge amount of capital investment. INK RECEPTIVITY MINERAL FILLERS PAPER MOISTURE CONTENTS SMOOTHNESS. GRAIN DIRECTION OPACITY OF PAPER SQUARENESS OF PAPER DOTTED SURFACE BULK FLATNESS FREEDOM FROM IMPERFECTIONS. PAPER PROPERTIES The basic properties of the product are related to the type of pulp used and the non cellulosic material used.

Marketing considered high customer service and maximization of profitable sale as their objective. Supply Chain Management is a process where in firms collaborates with each other in the bid of leveraging their strategic positioning and to increase their operating efficiency (Bowersox. Thus supply chain is like a relay team within each team is more competitive and there needs to coordinate between the entire team for achieving results. It¶s also seen as a mechanism that lies in-between this completely vertically integrated individual firms where the whole operation takes place with the mix of coordination and effective management. 1995). Marketing.NEED OF STUDY Until the dawn of 20th century business as well as distribution channel used the traditional delivery process for the experience and expertise dating back to the industrial revolution era. Closs. Information technology has given business connectivity a new way of order relationship called Supply Chain Management. But the introduction of information technology brought up a new dimension to the whole delivery process. Planning. Harrison. manufacturing and purchasing was considered independently as not a part of supply chain during the outset of industrial revolution. distributing. 2008). Manufacturing had higher and efficient output at the lower costs as their objective etc. Each of the processes had their own set of goals and objectives and they operated independently. 35 . Thus there was a need of mechanism wherein all independent functions could be integrated together (Ganeshan. Supply chain management can be viewed as a decision making process between strategy and operation.

transformation of materials into intermediate and finished products and the distribution of the finished products to customers´. Harrison ³a supply chain is a network of facilities and distribution options that perform the functions of procurement of materials. information and finances as they move in a process from supplier to manufacturer to wholesaler to retailer and finally to the consumer´. transporters and suppliers who come together and share the process of sale.Literature Survey The movement of a product or a service from supplier to customer takes place with the help of organizations. Supply chain finds its place in both services as well and manufacturing industry. delivery and production of a particular product or service. technology and resources. According to Jessie Chinami Supply chain management can be defined as ³an oversight of materials. Supply chain management is an efficient way of managing the above mentioned activities. people. 36 . distributors. Supply chain can also be explained as the association of the retailers. According to Terry. The basic aim of supply chain management is coordinating and integrating the flow which takes place within and among companies. The information flow manages the upgrading as well as management relating to the status of the delivery process while the financial flow manages all the finances related to the delivery process. The basic three types of supply chain management flows are:  The product flow  The information flow  The finances flow The product flow deals with the goods and services that are subjected to movement from a supplier to a customer and vice-versa.

The various processes in Supply chain management are: y y y y y y y Supply chain strategy Logistics Product lifecycle management Procurement Asset management Enterprise applications Supply chain planning The decisions associated with supply chain management cover both the long-term and short-term. These decisions must take into account the strategic decisions already in place. Strategic decisions deal with corporate policies. Therefore. an organization must structure the supply chain through long-term analysis and at the same time focus on the day-to-day activities. and look at overall design and supply chain structure. 37 .A schematic diagram of the Supply chain management process is as shown. Operational decisions are those dealing with every day activities and problems of an organization.

Moreover. y To understand the impact of policy making on SCM and implementation. customer service. distance considerations. service level requirements. Structuring the supply chain requires an understanding of the demand patterns. Aim: To investigate the current situation and future prospect of supply chain management in Ballarpur Industries Limited OBJECTIVES OF STUDY: y To identify major challenges and developments for SCM and its related issues in Ballrpur industries limited. which change constantly and sometimes unexpectedly. and pricing constraints all must be understood in order to structure the supply chain effectively.Furthermore. market demands. transport considerations. the interplay of these complex considerations could have a significant bearing on the outcome of the supply chain analysis process. It is easy to see that these factors are highly variable in nature and this variability needs to be considered during the supply chain analysis process. These are all factors. and an organization must realize this fact and be prepared to structure the supply chain accordingly. cost elements and other related factors. 38 .

 Customer  Purchasing  Planning  Inventory  Production  Transportation 39 . The Basic elements of SCM are given & described below. then you have a supply chain. if a company makes a product from parts purchased from suppliers. while others are rather complicated. Elements of the Supply Chain A simple supply chain is made up of several elements that are linked by the movement of products along it. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured.Definition of Supply Chain Management (SCM) SCM is a management of network of inerconnected business involved in ultimate provision of product & services required by end to end costomers. and those products are sold to customers. The supply chain starts and ends with the customer. Introduction to Supply Chain Management In simple words. Some supply chains are simple.

They determine the business of the organization.Customer The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. We can term the Distributors is the back bone of an Industry. The customer contacts the sales department of the company.(A). In case of BILT Unit SEWA Distributers are the customers of the Organization because they Bring orders directly or indirectly from the customers which goes to the respective zones & then to the respective Units. which enters the sales order for a specific quantity to be delivered on a specific date. Customer in context with BILT Unit SEWA Customers are the very important aspect of any Organization because they are both the starting as well as the ending end of the organization¶s Supply Chain. Marketing Process of BILT as follows- 40 . the sales order will include a requirement that needs to be fulfilled by the production facility. If the product has to be manufactured. There are thousands of Distributors of BILT in all over India.

MARKETING PROCESS OF BILT Wholesaler Retailer Retailer Production Unit Customer Distributor Jobber Deport Deport Retailer (B).Purchasing The purchasing department receives a list of raw materials and services required by the production department to complete the customer¶s orders. 41 . The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date.

the Order will be raised. Mechanical. Then the concerned Consumer Department people inspect the Inventory as per Quality or Specification and confirm the acceptance. generated through ARIBA by Stores Dept. These consumer departments will raise the Purchase Requisition (PR) for their Requirement to purchase Dept. and R&D. Workshop. Finishing. floats the Enquiry against the Indent. When the consignment reaches at the Consignee (Manufacturing UNIT) it is been assigned a Serial no. all the Procuring activities are done by the Purchasing department except for Bamboo & Hardwood because these two are procured by Raw material Dept. Then it is updated in the ARIBA (An Interface for Purchase Dept) for approval from competent authority. 42 y y y y y y y y y y .Supply Chain Process of Purchasing Department y Here at Ballarpur Industries Ltd. Then the Transporter is been decided. When all the concerned authorities approves. Then it has to go through a process like entry at each level for example Gate Entry. The Purchase Department arranges the requirement of the Consumer Departments like MSD. The Purchase Dept. Quality Control. Manufacturing. Finance. it may be Contractual or Nominated by the Party. Instrumentation. Then according to the SOP (Standard Operating Procedures) they finalize the Party or Customer. Electrical. Store Entry.

verify the payment terms and payments and pay the amount to the Customer. If it is been made the Inventories are kept for Exchange otherwise it is sent back the Vendor which is called RTV (Return to Vendor). it goes through the Payment Process where the Finance Dept. When it is allotted IKR it goes to rejection stage where the Purchase Dept. If in Case it does not match with the Specification it is allotted an IKR (Irregular Kachha Receipt). check for whether the payment has been made or not.y After acceptance of the material Stores will raise the KR. y y y 43 .

Float Enquiry & Finalize the Party Transporters Inspection Will be finalized by either Consignee or Consignor Payment Process Kachha Receipt KR Inspection for Quality/ Specification by Consumer Dept.Kachha Receipt *IKR-Irregular Katcha Receipt (Rejected Receipt) 44 .Flowchart for the working Process of Purchase Department Consumer Dept.Purchase Requisition *KR. Mill Stores IKR Material Rejection Finance Dept. Raise the PR Procurement or Purchase Dept. Verification of Payment terms & Payment If amount is paid Keep the Material for Exchange If not Paid Pay Amount to the Customer/ Party Return to Vendor (RTV) *PR.

When an Order is punched in the OTPTIVISION by the Zonal office for a specific unit to manufacture it is in the U (Unscheduled) State. production resources. As such planning and control problems are inherently optimization problems. The requirement triggered by the customer¶s sales order will be combined with other orders as per the production schedule. where the objective is to develop a plan that meets demand at minimum cost or that fills the demand that maximizes profit. The production department will create a production plan to produce the products to fulfill the customer¶s orders within the limited time horizon. Planning in context with BILT Unit SEWA Production Planning and control entails the acquisition and allocation of limited resources production activities so as to satisfy customer demand over a specified time horizon.(C). From here the work of production department starts. for both products and resources. 45 . Here route means the path starting from the paper machine to ready to transport state. They instruct the machine operators to manufacture as per the requirement. production lot sizes. Similarly. All the other Departments can see the order but actually can¶t workout unless & until the respective MSD Plans for the particular order by turning it into P (Planned) state. assignment of overtime and sequencing of production runs. All the process are been defined in this stage by MSD. such as distinct machines or labor pools are aggregated into an aggregate machine or labor resources. They see the order and divide all the order into several Runs (sub process) according to the specification. utilization and allocation of product resources to satisfy customer requirements in the most efficient and effective way. In this state the MSD define the Route of the Order. Distinct but similar products are combined into aggregate product families that can be planned together so as to reduce planning complexity. Production Planning is done at an aggregate level.Planning Production Planning address the decision on the acquisition. Typical decision includes work force level.

But after installation or implementation some inventory left with us then we can change those inventories to other categories i.e. and New Technology for Production etc. For example spare parts of machinery. Regular and Temporary for further utilization. For this kind of inventory a particular consumer department can raise the PR (Purchase Requisition) for a particular use. For this kind of inventory only the top management can raise the PR. Inventory in context with BILT Unit SEWA Here at BILT Unit SEWA All the Inventory are broadly categorized into 4 types based on their Nature and Requirement which are as followsBERT B (Block) . Essential. Some Example of this kind of Inventory is New Machinery. checked for quality and accuracy and moved into the warehouse. These are one time activity. The raw materials are stored until they are required by the production department. 46 . New Equipment.Inventory The raw materials are received from the suppliers. Time for Implementation and lots of human effort to carry forward the task. E (Essential) ± In this category as the name suggests all the essential items come that can be used for continues. Raw material etc. Then they are handed over to the MSD warehouse and MSD then Plans for the transportation Process of the finished goods.In this category comes all the materials which require a lots of capitalization. This kind of Inventory is been purchased by knowing of the top management or we can say it is their decision to purchase or acquire that particular Inventory. without interruption Production.The Production Department takes care of the production work and when all the products are manufactured the Quality Assurance Department Checks the Goods and certifies them. The supplier will then send an invoice to the company for the items they delivered. (D). But there is level for both maximum and minimum essential inventory which should be maintained.

All the inventories can be converted to this category because any inventory which is of further no use or less required in future can be categorized in it. Paper in terms of Reams or Sheets Cartoons. Pulp. T (Temporary) ± All the inventories that are of temporary requirement comes under this category. Based on the Production Schedule the Inventories can be divided into two categories as described below. For example ----------------------------------There is also a special category which is not included but has some importance in Handling which is described as below. Inventory  Preproduction Inventory Here Preproduction Inventories refers to Bamboo.  Postproduction Inventory Here Postproduction Inventories refers to Finished Product i. which are required for production of Paper. So these inventories can come to this category.e. There is a maximum and minimum level for these inventories. This type of inventory should be consumed within 90 days. Hardwood. S (Surplus) . To raise the PR the Lead Time and Consumption value are taken into consideration and the ABC analysis is being done.R (Regular) ± In this category all the regularly consumed items that are being needed every time comes. So to use it effectively the concerned Store in charge circulates a mail to other Units of the company to take and use them as per their requirements. It can be consumed by every department fro which the store generates the PR through a sub inventory. For example after implementing new production technique by establishing new machinery all the spare parts of old machinery is of no use. and Machineries etc. 47 . Thus these inventories become a dead asset for the company and contribute nothing to the company. Chemicals.

There is an A4 line at the end of PM-1. they are cut into reams and then either transported to Cutting Centers (VZM & VSKP) or given the size and shape as per the specification and transported to the Customers.Production Based on the Customer requirement the Production has to Start.Shipped K.Unscheduled P. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. Both the machines are dedicated for manufacturing different quality and sizes of papers.90 GSM. Copier FS 62-80 GSM and Image copier & TOT 65-70 GSM.Planned T.Cancelled . After the items have been completed and tested.(E).Cancelled X.Trimmed M. they are stored back in the warehouse prior to delivery to the customer. There are Two Paper manufacturing Machines. Where as the PM-2 is dedicated for manufacturing of Writing & Printing (W&P) paper like Easy Printing ranging from 52-58 GSM. Warehouse to store etc.Invoiced S. Order Status at various stages in Optivision U. SSML HB 60. PM-1 and PM-2 using which the production work is done. The PM-1 is dedicated for manufacturing of Copier grade paper like image copier 70 GSM. Raw materials. Further after being certified by the Quality Assurance Department. TOT (10/10) Mtv 65 GSM and Copier FS 68 GSM. All the orders are manufactured in the form of Jumbo Rolls. Production in context with BILT Unit SEWA The Production Department plans for the production keeping in mind the Order size and the availability of other resources such as machines.Manufacturing 48 I.

The transporters those who are indulged in these activities are either nominated by the Party itself or Selected and awarded the contract for the specific year by the Company. the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer. then the goods comes to finishing department and here all the people of finishing department do all the counting and primary packing of the goods through wrappers manually. This can be done through various means such as Air. And For the current year the company has selected the transporters by online reverse auction method. The selections of Transporters are basically done in two ways. One is Offline negotiation and other one is Online Reverse Auction where the company finds out the various transporters providing services for those particular areas and after doing a comparative statement they finalize and award them the contract. Then it comes to MSD warehouse and after doing the secondary packing the MSD plans for the transportation by appointing the transporters to dispatch the goods to the Customer¶s destination. When the goods are received by the customer.Forcedly Closed Item (F). Here at BILT Unit SEWA all the transportation activities of raw material and finished goods are done by Road Transportation. Goods must be transported from their place of Production to the many locations of their customers.Transportation When the finished product arrives in the warehouse. the company will send an invoice for the delivered products. 49 .Wrapped/Warehouse L. After manufacturing the Quality Assurance Department certify the Product. Transportation in context with BILT Unit SEWA Transportation is an important function of Marketing. Rail and Road. The processes that the company follows for the online reverse auction method are as follows. Water.W.Loading Started C.

Existing Material Movement by Road Delhi. Jhansi Depot or Parties Rajpura. Ahmadabad. Saharanpur Depot Rajpura Transshipment Point Indore Depot Kolkata Depot or Parties MILL Mumbai. Bangaluru. Pune Depot or Parties Ichhapuram Transshipment Point Vizianagaram Transshipment Point Visakhapatnam Cutting Centre Vizianagaram Cutting Centre Hyderabad Transshipment Point 50 Chennai. Cochin Depot or Parties .

BILT have adopted Supply Chain Management processes and associated technology. Supply Chain Management has three levels of activities that different parts of the company are focusing on: strategic. partnerships with suppliers.Supply Chain Process at BILT Unit SEWA Punches Order in OPTIVISON Production Planning & Order Monitoring Intend Order as per Requirements Manufactures as per the Specification MSD Plans Transportation & Dispatch the Order Gives Shape & Size as per Specification Supply Chain Management at BILT Unit SEWA To ensure that the supply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost. such as the size and location of manufacturing sites. 51 . products to be manufactured and sales markets. company management will be looking to high level strategic decisions concerning the whole organization. tactical. and operational. Strategic: At this level.

****The unit is always overbooked to the tune of 7,500 MT in a month whereas the capacity is restricted to 6,500 MT depending on various constraints in mechanical behavior of the machine. The GSM (Gram per Square Meter) & Various SKUs (Stock Keeping Units) are also influencing the capacity utilization of the machine. Considering the market demand and run ability of the machine the HO Marketing is regularly monitoring the activities of execution of orders in accordance to the monthly sales plan. Monthly sales plan is a perpetual home work an effective tool in respective of execution of orders. The MSD personnel are strictly advised to adhere to the allocated quantities, quality as specified there on.

Tactical: Tactical decisions focus on adopting measures that will produce cost benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory. ****In existing scenario of price escalation of diesel the transportation cost is being increase day by day which influenced the Lended cost of the customer. Keeping in view of such high trend in transportation cost the unit is adopting a very cost affective scientific method to cry a halt in escalating trend. In every year the Unit is inviting tenders from various reputed transport operators through online in Reverse Auction Method. Since the best price (Freight) is sealed by the company the cost effectiveness in respective of transportation charges are higher. In other words the lowest bidders in comparison to best price are awarded the contract to render service throughout the year. The customer lending cost as far as freight is concerned is in safe custody due to the above cost effective scientific method is concerned. In addition to cost effective price (freight) the delivery time and safe handling of materials are preconditioned in the contract and the suitable penalty are imposed in case the conditions are not honored .Regular follow up and monitoring are also affected so that the customer are within our reach regarding their status of material. Operational: Decisions at this level are made each day in businesses that affect how the products move along the supply chain. Operational decisions involve making schedule changes to production, purchasing agreements with suppliers, taking orders from customers and moving products in the warehouse.
52

****Orders scheduled for manufacturing is always within the ambit of sales plan. Therefore once sales plan is distributed to all the departments in the chain are proactively extending their respective chain so as to the cycle is competed without any interruptions. Each member of the chain is always in the stage of ³On your marks Get Set Go´ with ensuring that perpetual home work.

Supply Chain Management Technology used in BILT Unit SEWA
If a company expects to achieve benefits from their supply chain management process, then it will require some level of investment in technology. The backbone for many large companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle. Thus to ensure a high Customer satisfaction and a smooth working environment BILT has adopted an ERP System called OPTIVISON developed and maintained by Oracle. Since the wide adoption of Internet technologies, all businesses can take advantage of Web-based software and Internet communications. Instant communication between vendors and customers allows for timely updates of information, which is the key in management of the supply chain.

OPTIVISION
Optivision Comes from Honeywell, USA through Honeywell Automation India Ltd.It is a paper specific sollution Unlike SAP, BaaN and Oracle, which are generic Sillutions.It is successfully running in 100 plus Locations world wide.It covers µMake¶ and µSell¶ part of the business but it doesn¶t cover financial and procurement part of business. O-Order P-Planning T-Tracking I-Invoicing VISION ± Insight or In a single Interface

53

Product Map of OPTIVISION

Order Management

Block Scheduling

ATP

Micro Scheduling

Trim Optimization

Purchasing

Inventory Management

Production Management

Quality

Order Management

Procurement

Costing

Suppliers

Oracle & CRM Suite

Financial

Benefits of OPTIVISION
y y y y
54

Improved Production Planning Ability to Promise (ATP) delivery date to the customer Visibility of order Status Reduction in Wastage as system will do deckle match and Trim Optimization

y

Visibility of Inventories leading to reduction in Inventory related costs.

Distribution strategy :

1. To Depot distribution. 2. To Wholesales.

CORPORATE SALES & MARKETING OFFICE

First India Place, Tower C Mehrauli Gurgaon Road Gurgaon 122002, Haryana Ph : +91-124-2804242, 2804243 Fax: +91-124-2389495

REGIONAL OFFICES North Zone 249, Okhla Industrial Estate Phase-III, Okhla New Delhi 110020 Ph : +91-11-5161581-83, 51613061 Fax: +91-11-51613060

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Fax: +91-22-24928981 West Zone-II 511. Chennai 600018 Ph : +91-44-24315850. Fax: +91-44-24351011 56 . Anand Mangal-III Ambawadi. Mumbai 400013 Ph : +91-22-24903187-91 . Teynampet. Fax: +91-79-6400298 South Zone Wescare Tower 16. Cenotaph Road. 22821346-47 Fax: +91-33-22826271 West Zone-I H-2 Paragon Textile Mills Pvt Ltd. Compound Near TV Centre. 22824535. Worli. Ahmedabad 380006 Ph : +91-79-6400297.East Zone 6B Pretoria Street Kolkatta 700071 Ph : +91-33-22821297.

VIJAYWADA 3.AHMEDABAD 5.R. EVEREST COMMUNICATION CORPORATION. EVEREST TRADING COMPANY ± BBSR 2. P.P.CHENNAI 6.HYDEHABAD 4. LTD .DISTRIBUTORS OF BILT I. JANA AGENCY ± SIVAKASI MARKETING PROCESS OF BILT Wholesaler retailer Retailer Production unit Customer Distributor Jobber Deport Deport PHYSICAL DISTRIBUTATION OF Retailer FINISHED PRODUCT TO DEPOTS BY ROAD TRANSPORTATION IN BILT 57 .PAPER.DESAI PAPER PVT. SAHA AMIRCHAND & TARACHAND & SONS. N.

58 .

A contract carrier is an independent Organization. They are called Transporter.ROAD TRANSPORT:- It can be divided into two types  Own Company Transport  Open Market OWN COMPANY TRANSPORT If the shipper owns its own truck or they have their private carrier. Who sell their transportation to others on a contract basis. (SRTL) ORISSA BENGAL CARRIER (OBC) SOUTH INDIAN LOGISTIC CO. OPEN MARKET BILT (UNIT SEWA) depend upon the contract carrier. (SILC) DEEPAK TRANSPORER AGENCY (DTA) DELHI ASSAM ROADWAYS CORPORATION (DARC) Supreme Road Transporter (SRTL) serves his service to all north 59 . But the paper industries BILT (Unit Sewa) have their no private carrier. The following are the transporter of BILT SUPREME ROAD TRANSPORTER LTD. This is called Own Company Transport.

AHMEDABAD. AHEMEDABAD. South Indian logistic ± VIZIANAGARAM. Rajpura. PUNE SOUTHERN ROAD CARRIERS ± CHENNAI. COCHIN. Bengal Carrier TransporterMUMBAI. VISAKHAPATNAM Deepak Transporter Agency . CALCUTTA.Delhi.MUMBAI. Jhansi Orissa. BANGALORE. Saharanpur. CHENNAI. 60 .

Since.RESEARCH METHODOLOGY PROBLEM FORMULATION Analyzing the Supply Chain Management decision of Ballarpur Industries Ltd. The data was collected by the Distributors and Wholesalers in a disguise mode. magazines and internet. The design that is being followed in this case is descriptive one. Another way that is used for data collection is telephoning interaction/interview with the sellers.The secondary data is basically used for the purpose of enhancing the concept clarity regarding different variables of Supply Chain. Basically descriptive research is of two typesingle cross sectional and multiple cross sectional. The data are collected by interaction mode from the Distributors and Wholesalers. Since the objective is to analyse the Supply Chain Management decision of BILT. RESEARCH DESIGN Quantitative technique is being used that help to make the relationship between theory and research. 61 . The sources are research articles. ii) Secondary data collection.In this case data are collected directly from the respondent in the Questionnaire that is being used in this research process. journals. in this case I am just taking one sample and drawing the conclusion on that basis it is single cross sectional. DATA SOURCES Data collection is done with the help of two methodsi) Primary data collection.

The sample frame of this study is the Distributors and wholesaler keeping and selling IMAGE copier(BILT paper) in Jeypore y SAMPLE SIZE.The technique that is being used in the research is convenient sampling 62 .The sample chosen for this study is Distributors and wholesaler who deals in IMAGE copier (BILT paper). y SAMPLE FRAME.Sources: Websites Books SAMPLE CONSIDERATION y SAMPLE DESCRIPTION.The sample size is 100. SAMPLING TECHNIQUE.

DATA ANALYSIS 1. Yes : 70 No: 30 Aware of bilt Yes No 30% 70% BILT is recognised by near about 70% of population and having a very good SCM by which BILT enjoying a good brand image in market. Are you aware of BILT. 2. Other brands you come across 63 .

But having a tuff competition from JK paper mill . By asking that how many wholesaler are satisfied with the supply chain management of BILT and i got the results as 64 .3% BILT JK 7% 6% ITC paper brands TNPL 8% 30% CENTURY WESTCOAST RAMANEWPRINT 14% 32% BILT enjoying a good portion of market share. 3.

of wholesaler takes decision 15 25 30 30 65 . Supply chain management covers a big portion of different elements which effects the decision making process by an wholesaler.respond of wholeseller very satisfied satisfied not at all 0 10 not at all respond of wholeseller 15 20 30 40 satisfied 60 50 60 70 very satisfied 25 From all respondents 60% are satisfied with the supply chain management but 15% of them not satisfied due to lack of communication with semi urban areas. So we asked those wholesaler on which they takes the decision to deal and i used sample as a)brand image b)price c)supply chain d)quality of paper and i got the results as Elements Brand image Price Supply chain Quality of paper No. 4.

Do the customer consider for new product Yes : 60 No : 35 Don¶t Know : 5 66 .Elements effects on decision making Brand image 15% Quality of paper 30% Price 25% Supply chain 30% As this pie chat describes that supply chain effects a big impact on decision making process of an wholesaler . 5.

when any order takes place from Delhi . Saharanpur Depot . So when it questioned that how successful Supply Chain works it concludes that it work very well in urban area but due to metro city are far from the main mill it takes a little more. Jhansi Depot or parties .Indore Depot . How successful do you think is your company in managing its supply chain in different area like a)semi-urban area b)urban area c)metro city and we got result as BILT deals with Rajpura Transshipment point .Vizayangaram Transshipment point and Ichhapuram Transshiment point . etc it takes the route of Rajpura Transshipment point and it takes a little more time. 6. And then next question was How do you manage your supply chain? and we got the answer as to ensure that the supply chain is operating as efficient as possible and generating the highest level of 67 . And some questioner for the MSD department on which we are going analyse the rest impont role played by supply chain management to develop the organisation¶s profit.Need of new produt Don't Know 5% No 35% Yes 60% It indicates that Company may consider for new product development rather than increasing the existing production. These are questioners to the wholesaler and distributors on which we got the results.Rajpua . which has got less demand .

How much benefit can be acquired by using these systems? A) Close partnership with suppliers & customers a) Not at all b) Littlec)Average d)Greatly e) A lot B) JIT supply a) Not at all b) Littlec)Average d)Greatly e) A lot C) e-procurement 68 .customer satisfaction at the lowest cost. Supply Chain Management has three levels of activities that different parts of the company are focusing on: strategic. and operational. Does a company need a separate department to deal with supply chain affairs ? YES NO This question asked to different distributor and we got results as. 7. among 100 respondents 63 said yes and rest 37 said no its not mandatory to have a separate department for supply chain management to have a smooth flow of work. Need of separate Deprtment No 37% Yes 63% 8. tactical. BILT have adopted Supply Chain Management processes and associated technology.

Average :3 .5 0 BENEFITS FROM SYSTEMS E-PROCUREMENT SUPPLY CHAIN BENCHMARKING HOLDING SAFETY STOCK SUPPLIER & CUSTOMER JIT 69 .Little :2 and Not at all :1 then it will like this 5 4.a) Not at all b) Littlec)Average d)Greatly e) A lot D) Supply Chain Benchmarking a) Not at all b) Littlec)Average d)Greatly e) A lot E) Plan strategically a) Not at all b) Littlec)Average d)Greatly e) A lot F) Holding safety stock a) Not at all b) Littlec)Average d)Greatly e) A lot And I got response as if I gives points to A lot :5 .5 2 1.5 4 3.5 1 0.Grately :4 .5 3 2.

Due to this transportation cost a lot to company and increases total cost.As company main problem is transportation. In what level company is facing the problems when using these systems? A) Resistance to change from employees B) Resources shortages C) Skills shortages D) Insufficient vendor support E) transportation F) other specific ____ ____ ____ ____ ____ ____ By this we got response as the main problem faced by the company is transportation . 10. company may adopt their own transportation facilities rather than going for private transport¶s to decrease the transportation charges. Is it less expensive to buy own trucks or hire the transporters for transportation ? This question provides the suitable answer for the previous question .It shows that the JIT system will beneficial for the organisation as most of respondents (Distributors & Wholesaler) choosen JIT as yhe most favourable system for SCM in organisation. 70 . 9. because mill situated in a place (jeypore) which is no properly connected with capital city.

Even through this unit has its plantation at CHITRAKONDA and MALAKANGIRI both the plantations are taken on lease basis in the state of ORISSA and own plantation at NANDAPUR(ORISSA) is sufficient to face the requirements or demand from the customer. Technical etc.OBSERVATIONS 1. 71 . As the yield from the forest poor.The raw materials which are made available to these industries are at a very high cost with the government raising the royalty rates steeply year by year. Many state governments used to raise royalties and lease out regularly the forest to paper industry.This unit insisted that the farmers or the growers by permitted to raise plantations of Hardwoods like ACCASIA. the target is unlikely to be attained. The national forest policy announced recently aims to bring about a rapid in forest cover from 23 to 33%. CASURINA etc. The designated forest area in India is about 23% of the total area. At first the paper units got forest on favourable basis by fair r unfair industry. Cane etc. The forest policy expects the industry to raise the raw material through farm forestry is association with the growers. these plantations suffer from lack of resources of Finance. 2. EUCALYPTUS. These Mill went them without the thought of afforstration.There has been extreme uncertainty in regard of forest lease and royalties. UNREALISTIC FOREST POLICY The main Raw Materials for manufacturing a paper are Bamboo and Hardwoods. for the pulp making on its own and requirement to encourage the initiative with the allocation of large piece of contiguous land on lease or any other commercially basis. Hardwood. The caused the major problems for industry as the raw material supply went down day by dayComparison shows that wood plantations controlled by the government yields poor results than that of plantations outside the country.RAW MATERIAL PROBLEM As per the mills based on conventional Raw Materials such as Bamboo. There has been deforestation and both the central and state government has actively colluded with the paper mills in destroying forests indiscriminately.

Those units situated near the forests the transport costs are also high when they have imported waste paper as their raw material. which leads to stoppage of production. Over all problem is the serious power cut.LACK OF NEW TECHNOLOGY Lack of technology is another problem of this unit. resulted in over capacity in the industry and severs competition. 5. So it takes more time to be delivered and as well as it takes more cost for the transportation.3. 6. It cost company as a lot breakdown in working time which results in high cost of production. Those units which could not face the competition and could not bear the increase in the cost of Raw Materials.The price of power and coal which is supplied by private and public sector units have risen by 40% in the last decade. 4. tripping in wastage and regular power cut which lead to stoppage of production and the local bodies threatens closure of paper mills.OVER CAPACITY AND UNDER UTILISATION The encouragement by Government to small paper units.HIGH TRANSPORTAATION COST As the mill situated such a place far from metro and big cities it cost high to the organization for the transportation. As to get delivered at these big cities it road way and takes more as they have to go through transshipment point. Similarly the royalties on Bamboo and Hardwood have been increased by to 700% in the last decade. 72 .HIGH COST OF PRODUCTION The price of the standard equipment needed by the paper industry is very high like wise chemical raw materials have also risen by similar rate. transport charges. For example if there is an order from Delhi it delivered in Rajpura transshipment and then it delivered at Delhi.

it should introduce Management Information Service(MIS). Offering incentives or benefits to the production and marketing staff can solve many problems in the company. It is necessary to look after raw material problem. which has got less demand. 2. 4. To increase the demand for the existing product it must go for proper advertisements and awareness programmes in the adjacent places where the need of the product is very high and where the demand for the product is less. 5. Industry may search for alternative raw materials for their production process. Company may consider for new product development rather than increasing the existing production.transportation cost. 73 . 7. The industry may go for alternative technology for the quality control and to reduce stoppage of production. this Unit may control or reduce the administrative overheads and other controllable expenses like. It is necessary to look after raw material problem in various areas. 8. Maintaining the wastage or maximizing the utilization of available resources and placing the orders in time after calculating economic order quantity(EOQ) may solve raw material problem. using the advance technologies etc.SUGGESTIONS 1. 11. The industry has a whole can go for different providing policies to meet the competitor price in the market. 12. To decrease the production cost and increases the profits. 3. 9. In order to improve the performance in total. The industry may try to adopt a marketing orientation to find out new customers like educational institution and government sectors if applicable. Company may consider for expansion of existing plantation of main raw materials is use their forest policy. rather than depending much on the demand from the existing customers only. 6. The industry may adopt their own transportation facilities rather than going for private transport¶s to decrease the transportation charges. 10.

74 . this Unit may control or reduce the administrative overheads and other controllable expenses like. using the advance technologies etc. The Company should introduce Just in Time method for both the production and supply of Goods to avoid the inventory handling costs and proper shop floor utilization. 15. The industry as a whole can go for different incentives and discount plans to meet the customer¶s choice and competitor price in the market.13. To decrease the production cost and increases the profits.transportation cost. 14.

due to business depends on supply chain management to survive in market it¶s a big issue to be studied.transportation constraints .distance factors from metro and big cities. deliver. in fulfilling a customer request.so in this summer internship programme my main objectives are to identify major challenges and developments for SCM and its related issues in Ballrpur industries limited and To understand the impact of policy making on SCM and implementation. and customers themselves.CONCLUSION Supply chains encompass the companies and the business activities needed to design. directly or indirectly.but also transporters. 75 . warehouses. location disadvantage .´ My aim is To investigate the current situation and future prospect of supply chain management in Ballarpur Industries Limited . In these seven I studied that BILT (Unit Sewa) got a good SCM but with some problem as lack of technology . to deal with transportation constraints and cost it should explore movement of material through rail and potential transporters for specific market having good line-up for movement of materials. ³A supply chain consists of all stages involved. and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. The supply chain not only includes the manufacturer and suppliers . high transportation cost . retailers. make. As my observation I suggest to implement Management Information System in the organisation to have quick and uninterrupted wok . And in these seven weeks I got to know that Supply Chain Management plays a big role in BILT (Unit Sewa) as all other organisation.

I am a MBA student doing my course as per the requirement of B.QUESTIONNAIRE Dear Respondents. 1.T I have been undergoing a survey method of BILT Papers.U. What are the Papers (Brands) you have come across ? a) BILT__________ b) JK______________ c) ITC___________ d) TNPL____________ e) CENTURY ____________ f) WESTCOAST________ g) RAMANEWSPRINT ___________ 76 .P. Are you aware of Ballarpur Industries Ltd (BILT) Paper ? a) Yes__________ b) No______________ 2. This study is about marketing demand and perception of different papers of BILT. Kindly co-operate with me for completing this survey successfully by giving your valuable response.

Do you satisfied with the supply chain management of BILT? a)not at all b)little c)satisfied d)quite satisfied e)very satisfied 4. How do you manage your supply chain? Tick all that apply A) Close partnership with suppliers & customers B) JIT supply C) e-procurement D) Supply Chain Benchmarking E) Plan strategically F) Holding safety stock G) Other (specify 6. How successful do you think is your company in managing its supply chain in general? Not successful at all 1 Not successful Somewhat successful 3 Successful Very successful 5 2 4 77 . Rank the features that effects your decision making process ? a) Brand Image_______ b) Price ________ c)Supply Chain _____ d) Quality of paper 5.3.

Which of the following you think that your company needs to do in order to manage its supply chain better? A) Close partnership with suppliers & customers B) JIT supply C) e-procurement D) Supply Chain Benchmarking E) Plan strategically F) Holding safety stock G) Other (specify) 8.7. Does your company have a clear logistics strategic plan? YES NO 10. Rank the types of systems are currently in use in your company to support Supply Chain Management? A) Material Requirements Planning (MRP) B) Warehouse Management System (WMS) C) Customer Relationships Management (CRM) D) Supplier Relationships Management (SRM) E) Just In Time (JIT) F) E-commerce & E-business ___ ___ ___ ___ ___ ___ 78 . Does your company have a separate logistics department? YES NO 9.

11. How much did you actually benefit from using these systems? G) Close partnership with suppliers & customers a) Not at all b) Little c)Average d)Greatly e) A lot H) JIT supply a) Not at all b) Little c)Average d)Greatly e) A lot I) e-procurement b) Not at all b) Little c)Average d)Greatly e) A lot J) Supply Chain Benchmarking b) Not at all K) Plan strategically b) Little c)Average d)Greatly e) A lot b) Not at all b) Little c)Average d)Greatly e) A lot L) Holding safety stock b) Not at all b) Little c)Average d)Greatly e) A lot 79 .

Ltd..BIBLIOGRAPHY j Kotler. 2003 j Business Today Magazine j Website referred . Ltd.com 80 . C. Philip. Delhi.google.http://www. Research Methodology. Delhi.com j Search Engine. Pearson Education Pvt. Wishwa Prakashan Pvt. Marketing Management.R...http://www.bilt. 2004 j Kothari.

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