Professional Documents
Culture Documents
Supply Chain
Supply Chain
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PROJECT REPORT
ON
Of
Pt.Ravishankar Shukla University, Raipur (C.G)
Session 2009-2010
Submitted by
GUIDED BY
ABHISHEK KUMAR
MR.SANDEEPJASHWANT
BBA 6TH SEM
HOD (MANAGEMENT)
DEPARTMENT OF MANAGEMENT
SHRI SHANKARACHARYA MAHAVIDYALAYA
SECTOR-6 BHILAI (C.G)
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Declaration
I ABHISHEK KUMAR student of sixth semester
at shri shankaracharya mahavidyalaya
hereby declare that this research report under
the titleSUPPLY CHAIN MANAGEMENT is
the record of my original work under the
guidance of Mr. Sandeep Jashwant (H.O.D )
B.B.A . This report has never been submitted
anywhere for award of any degree or diploma.
Place:
ABHISHEK
KUMAR
BBA 6TH SEM
Date:
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Certificate
This is to certify that ABHISHEK KUMAR a
student of B.B.A sixth semester of our
institute under my guidance and
supervision she had carried out the
research project under title
SUPPLY CHAIN MANAGEMENT
Project guide
PRINCIPAL
(H.O.D management)
Place:
Date :
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Acknowledgement
Perhaps the most awaited moment of any
endeavor in its successful competition of their
project report cases study having worked on
her project for the whole academic session. I
would like to express my sincere gratitude to
all those who made it possible.
Preface
The topic chosen by me for my project is
SUPPLY CHAIN MANAGEMETIn reference to
CHAUHAN hero Honda automobiles the two
wheeler especially in the stylish motorcycle. At
present hero Honda is market leader in the
Indian market.
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Chapter (1)
Chapter (2)
Introduction
Company profile
Introduction
History
Two wheeler in India
Company profile
Our brand
Product profile
Chapter (3)
Chapter (4)
Supply chain
Factor influencing
Channel
strategies
Distribution channel
Market consideration
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Multiple channel
Product consideration
Traditional cannel
Chapter (5)
management
Chapter (7)
Vendors management
Operation
Distribution network
working with supply chain
Rural network
the green supply chain
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Chapter-8
Supplier relationship management
Different range of product
Processing order manually
Chapter-9
Chapter-10
Bibliography
Automating supplier transaction
End to end process integration
Improved collaboration analytics
Index
Serial no:
Chapter:
Page
no:
1)
INTRODUCTION
10-16
2)
PROFILE
17-22
3)
SUPPLY CHAIN
23-28
4)
29-31
5)
32-38
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6)
39-45
7)
46-51
8)
52-58
9)
59-60
10)
BIBLIOGRAPHY
61
Chapter - 1
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Introduction
Satisfaction is the persons feeling of pleasure
(or) disappointment resulting from comparing a
product perceived performance (outcome) in
relation to his/her expectation. If the
performance falls short of expectation the
customer is dissatisfied. If the performance
matches the expectation customer is satisfied,
if the performance exceeds the expectation the
customer is highly satisfied (or) delighted.
Many companies are aiming for high
satisfaction because they are much ready to
switch. ]
Buyers expectation formed on the basis of
past buying experience,
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Two wheelers in
India
In 60s decade several vehicles were
running in the Indian roads those are the
sun beams, AIS, BBA and Royal Enfield.
From these motor cycles only the Royal
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Objectives of the
study
} To know the customers
expectations
Towards hero Honda.
} To find out the customer
opinion regarding
Various aspect of the bike.
} To give the appropriate
suggestion to the
company regarding he
performances.
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Our brand
Our brand identity:
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Chapter -2
History
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Company
profile
Hero is the brand name used by the Munjal
brother in the year 1956 with the flag ship
company hero cycles .the two wheeler
manufacturing business of bicycle component
had originally started in the 1940s and turned
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customer.
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Product profile
Price list
Model
PRICE
RTO
INS
TOTAL
CD-Dawn
33250
1805
853
35908
CD-DLX(MAC)
36420
1932
900
39252
PLEASURE
37600
1979
914
40493
SPL.NXG
40100
2029
950
43079
SPL.PLUS
41635
2140
972
44737
PASION PLUS
44550
2257
1012
47819
SUP.SPL.(RING)
46290
2327
1037
49654
SUP.SPL(MAC)
44900
2399
1109
48408
GLR.(MAC/SELF)
47880
2390
1059
51329
GLR.(DISK/SELF
48820
2428
1072
52380
CBZ.EXE (SELF/DISK)
59670
2862
1225
63757
HUNK
59390
2851
1221
63462
KARIZMA ZMR
94640
4261
1782
10068
3
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Colors in Vehicle
GLAMOUR
Candy blazing red, cloud silver metallic, tornado
metallic grey,
impulse orange metallic,
excellent blue metallic.
CD DELUXE
Candy blazing red, cloud silver, candy Tahitian blue,
amaranth maroon, cool mint grey.
SPLEDOUR
black candy red , blaze , boon silver, metallic, sierra
metallic, granti blue metallic.
PLEASURE
CD DAWN
Black ,maroon, red
CD 100SS
Candy ruby red black , amazing blue metallic,green
metallic.
PASSION PLUS
Moon yellow, cloud silver ,amaranth maroon, Tahitian
blue, Candy blazing red,black with purple strips.
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KARIZMA
Green , sky blue black metallic, yellow shade.
Chapter -3
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SUPPLY CHAIN
} Selling direct with an outbound
sales force via mail order: internet .TV
home shopping and telephone.
} Distributor (also called whole
seller), who sell to retailer.
} Agent who typically sells direct on
behalf of producer.
} Retailer (also called dealer or
reseller), who sell to end customer.
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Distribution channel
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Multiple channel of
distribution
For many product &services their manufacturer or
provider uses multiple channel of distribution, a
personnel computer , for examples might be bought
directly from the manufacturer , either over the
telephone ,direct mail ,or the internet or through
several kind of retailers , including independent
computer stores .In addition ,large and small
business may make their product through others
outlet .
Channel structure ranges from two to five levels .The
simplest is the two level structure in which goods and
the services move directly from the manufacture or
provider to the consumer. In three level channels
structure retailers serves as an intermediaries
between producer and consumer. A four level is
added when manufacturer sell to wholesaler rather
than retailers. In four level structure, retailers order
goods from wholesaler rather than manufacturer.
Finally, a manufacturer agent can serve as an
intermediary between the manufacturer and its
wholesalers creating a five level channel structure
consisting of manufacturer and its whole seller,
retailer, and consumer levels a five level channel
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Market consideration: -
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Product consideration:-The
type and the a nature of the product s manufactured
is one of the important element in choosing the
distribution channel
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Decide on budget.
Create a mix of activity.
Acquire the reach of each event: compare
effectiveness of each media vehicle
(radio/newspaper/interests).
Make a check list of all items involved.
Assign responsibility.
Estimate cost of each element.
Identify the location, decide the periodicity.
Send an indent well in advance to RTO/HO for
making collaterals.
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PLANNING FOR INVENTORY: Observe sales pattern of the spare parts both
workshop consumption and of the counter sale.
On the basis combined with anticipated growth,
identity requirement of specific items and their
quantities.
Plan to stock critical spares.
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Vendors management
Vendor management is critical to Hero Honda, as nearly 73 per cent of the
production is currently made up of material cost. During the year, the
company managed an average cost reduction of Rs. 343 per vehicle despite
volatility in metal prices. A national network of 256 vendors - including 36
ancillaries - forms the backbone of its plant operations. To improve plant
efficiencies and inventory turns, Hero Honda has extended "Just in Time (JIT)
beyond the shop floor. Vendors are also making critical investments in quality
and capacity in collaboration with the Company. For example, the online
vendor connectivity program has made rapid progress. Three years ago, the
Company had only 46 vendors connected online to the company's factories.
By the end of 2009-10, it is estimated that 72 per cent of the vendors and
their supplies would be connected online. Around 100 ancillaries will be
setting up their manufacturing base in Haridwar over the next two years to
ensure a fully integrated supply chain. To begin with, 40 ancillaries will set up
their facility in the Industrial Parks that are being specially developed for Hero
Honda ancillaries.
During 2009-10, Hero Honda plans to work with vendors to develop new
vendor production facilities. 3PL service providers have also been identified
for the Haridwar plant a first for any two-wheeler company as part of an
ongoing exercise aimed at quality control, members of senior management
visited vendor premises for top quality audits. This has resulted in the
reduction of rejection parts per million (PPM) by 20 per cent. During the year,
the company launched a collaborative cost improvement program with
vendors. In this program the processes and methods are continuously toned
so that the material cost can be managed better. Hero Honda is also
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Distribution Network
The company has a conscious strategy of
penetrating new markets and unrepresented
territories through its distribution network
which is made up of dealers, authorized
representatives, stockiest and SSPs. In March
2001, the company had 826 such customers
points in India. By March 2009, this number
went up to over 3500. On an all India basis, 50
dealers, 150 SSPs, 267 dealers representatives
and 45 city work agents were added. All the
four marketing zones of the Company showed
a uniform increase in new customers points
during the year in review.
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Rural Network
During the year, Hero Hondas ambitious
rural connect program
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Under the HGHA program the company makes all the efforts to be a
part of the villages by conducting such programs either directly or by
partnering or sponsoring the events organized by the local
administration on regular basis. The company believes that the rural
mobility is a major contributor to GDP growth in an agrarian economy
like ours. 'Sikhao Baliye' is company's unique initiative in the rural
market that aims at driving the mobility of rural women. The program
aims at promoting company's light and zippy gearless scooter Pleasure
by creating awareness amongst its TG which primarily are all rural
men, particularly opinion leaders and those who wish to impart riding
training to their wives, daughters, daughter-in-laws, sisters etc., and
prospects in general. The program covered 40 villages, 266 female
riders received basic riding training, and 35 of them could ride the
scooter immediately after the training.
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Operations
Hero Honda has two key priorities: first, to expand and grow aggressively,
and second, to develop capabilities and innovate constantly. Keeping these
priorities in mind, Hero Honda undertook the following activities during the
year:
Commissioning of a new plant at Haridwar: The commissioning of this third
plant gives Hero Honda a total installed capacity of 4.2 million two wheelers.
A capacity of this magnitude has enabled Hero Honda to
Retain its position as the world's largest two-wheeler manufacturer for eight
successive years.
The full commissioning of the Haridwar plant allowed the company to plan its
production better. Depending on volumes, production was rationalized across
the three plants. This reduced changeover time helped the company increase
its overall efficiency level. In turn, this helped Hero Honda bring down overall
manufacturing cost per vehicle during the year. New Models: During the year,
seven new models were introduced across segments. Out of these four
models were launched in the space of a month. The variability of the product
mix could have posed a challenge; but, flexible systems at the three plants
allowed production to proceed smoothly. Distribution Network: The company
has a conscious strategy of penetrating new markets and unrepresented
territories through its distribution network of dealers, authorized
representatives, stockiest and SSPs. In March 2008, the company had 826
such sales and service points in India. By March 2009, this number had grown
to more than 3500. All the four marketing zones of the company
demonstrated a uniform increase in new dealerships and SSPs during the
year in review.
Rural network: During the year, Hero Honda's ambitious rural connect
programHar Gaon, Har Aangan gained critical mass. Currently, every
non-metro dealership has a dedicated Rural Sales Executive who
travels to villages, meets people and drives the initiative on a
sustainable basis across the country. At the moment, there is a network
of more than 500 rural sales executives working on the rural vertical
which works on the hub and spoke model. There is a plan to
substantially boost this number in the coming years. Typically, the rural
executives fan out and visit villages with a population of more than
5000 people. Apart from meeting opinion leaders, the executives are
also tasked with organizing Loan Melas in partnership with Gramin
Banks, License Camps and Riding Schools. The idea is not just to
increase awareness about the two wheeler industry but also to
increase buy-in for Hero Honda products.
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During the year, Hero Honda also worked with vendors to develop and
produce alloy wheels within Haridwar. This considerably reduced
dependence on costly imports.
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Information Systems
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A new eco-friendly state-of-the-art data centre was set up and Hero Honda
migrated to a new technology architecture that included blade servers and
virtualization. This would help consolidate servers and storage as well as
reduce complexity. To help Hero Honda prepare for the future, two major
strategic initiatives are being planned for 2009-10.. The first is Product
Lifecycle Management software. This will help the company in managing the
increase of complexity of a diverse product portfolio and help reduce cost and
time for developing new models. The new software is also expected to
improve and scale up design-level collaboration with vendors on an on-line
basis. The software is also expected to reduce warranty costs. The second
initiative comprised of rolling out Dealer Management System software
across the front end of the supply chain. This will help Hero Honda connect
with its entire dealer network. Once the project is complete it is expected to
improve customer service and supply chain performance extensively.
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continues, Our suppliers are given a plan for the month but
changes are often necessitated by market conditions like
changes in the mix of models and colors. And theres also
increase or decrease in demand. We want the ability to
respond to these changes by aligning the production plan,
supply schedule of components, and other resources to
handle this efficiently.
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Improved Collaboration,
Analytics
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(S.R.
Balasubramanian, Vice President,
Information Systems, Hero Honda)
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Karizma
Hunk
Hero
Honda CBZ
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Glamour
Honda shine
Glamour
Hero
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rofPimawt&buednycskl
Bibliograp
hy
NEWS AND VIEWS FROM MARKETING
DIVISION OF HERO HONDA.
AME BUSINESS MAGAZINE.
AUTO MAGAZINE.
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BUSINESS INDIA
FINANCIAL EXPRESS
BUSINESS LINE
OVER DRIVE MAGAZINE.
WWW. INDIAINFOLINE.COM
WWW. HEROHONDA.COM
WWW.ECONOMICTIMES.COM
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