Gokhale Education

Society’s
B.Y.K College of
Commerce

Project
Report

on

Business Exposure (Supply Chain

Management)

2020-2021

(Shrushti Ashokkumar Kharat)

Class: SYBBA(IB)

Guided by
(Sunita Deshmukh)
 University Exam Seat No:

Gokhale Education Society’s

B.Y.K. College of Commerce

Prin. T. A. Kulkarni Vidyanagar, Nashik – 5.
‘NAAC’ Re-accredited with Grade ‘A’

ISO 9001-2015 Certified College

Certificate
This is to certify that Mr. /Miss Shrushti Ashokkumar Kharat of SYBBA /
SYBBA (IB), Roll No. 47 has undertaken and completed the Industrial Visits as
per the rules of Savitribai Phule Pune University for the year 2020- 2021.

Date: / /2020 Subject Teacher Principal/ Vice

Principal

Date: / /2020 Internal Examiner External Examiner

Sr.No Retail Outlet/Organisation Page No.

1. Manufacturing Flow Of Mahindra 4

2. Store Keeping Of Nestle. 8

3. IT Trends in SCM with Respect To Tesla. 12

4. Issues in Relationship Management With 17

Suppliers With Respect to Amazon.
 Manufacturing flow system of Mahindra

Objective of the project

1] To Understand The Manufacturing Flow System Of Mahindra

MANUFACTURING PROCESS
At the heart of every Mahindra is technology that the customer can count on.
Everything that goes into making of a Mahindra, whether it's the engine or the
genset is world class. The entire process, from manufacturing facilities and
technology to sales and services has received the highest rating for Total
Quality Management and also won the Deming Prize- one of the most coveted
awards in the world.

MAHINDRA ENGINES
One of the most important stages in the manufacture of a Mahindra engine
is the J- bar assembly. This state-of-the-art process helps increase the speed
of the assembly and at the same time allows Mahindra personnel to keep a
tight check on component quality. The entire manufacturing process is
guided by Poke Yoke concept; to achieve zero defects in the production
line. This involves a robust design of the manufacturing systems and
processes coupled with education and awareness about possible errors to
achieve a high build standard in the engines. No wonder all Mahindra
engines rate high on performance and dependability.
One of the most important stages in the manufacture of a Mahindra engine
is the J- bar assembly. This state-of-the-art process helps increase the speed
of the assembly and at the same time allows Mahindra personnel to keep a
tight check on component quality. The entire manufacturing process is
guided by Poke Yoke concept; to achieve zero defects in the production
line. This involves a robust design of the manufacturing systems and
processes coupled with education and awareness about possible errors to
achieve a high build standard in the engines. No wonder all Mahindra
engines rate high on performance and dependability.
DIESEL GENSETS
Mahindra Powerol is today one of the largest manufacturers of Diesel
Gensets in its range. These gensets are manufactured at two state-of-the-art
factories located at Pune and Delhi, with a combined manufacturing
capacity of over 30,000 sets per annum. Just like the engines, the most
important process in manufacturing of gensets is the J-bar assembly. In
addition to this, the entire manufacturing process of the gensets is also
guided by the Poke Yoke concept; to achieve zero defects in the production
line. A strong design of the Mahindra systems and processes coupled with
education and awareness of possible errors helps Mahindra achieve a high
build standard in its gensets. Component Machining - Because critical
components are best made in-house Mahindra's has its very own facility
for the machining of critical components. This helps Mahindra achieve and
maintain very high standards in the fit and finish of all critical components.
So the next time you buy a Mahindra engine or a Mahindra genset, you
know you have a world class technology working for you.
 Conclusion

Mahindra is one of the largest vehicle manufacturer by production in india and

the largest seller of tractors across the world.it is ranked at the 10 th most
trusted brand in India.
 Store keeping of Nestle

Objective

To Understand Store Keeping

Techniques of Nestle

Storekeeping of
nestle

The procurement life cycle followed by Nestle is broken up into

several integrated components in the business and involves large number
of intermediary processes like purchase requisition, purchase order,
vendor involvement, goods receipt and inventory management and
accounts payable. All this processes make together the life cycle of
procurement process.

Each time an inventory item is received or issued from the inventory at

one of the Nestle locations, the system automatically updates stock
quantities and values, and reduces inventory. Time consuming tasks are
simplified through determining optimum source of supply, analyzing and
comparing vendor pricing, issuing purchase orders, managing the
authorization for purchase requisitions, processing invoices for payment
and recording the same. The efficient supply chain at Nestle requires all
stock planning and operational activities to be integrated into a uniform
business-process flow.

At the inventory management there are three types of Goods Movements

namely goods receipt, goods issue and transfer posting. As soon as the
goods movement is entered stocks are updated, material documents are
created to record the event and accounting documents are created when
change in valuation area occurs.

At Nestle, sending a purchase order to a supplier, it is necessary to have

some internal agreement on what is required, together with an audit trail
of approvals for that requirement. A Purchase Requisition (PR) provides
this facility and is an internal request to purchasing. Once it has been
electronically signed off (workflow), it can be used to generate a Purchase
Order, which is an external request to the Nestlé’s supplier.
A purchase requisition is an internal request at Nestle to purchasing. You
ask the buyer to provide a certain quantity of a material or service on a
certain date. A purchase requisition can be created automatically by MRP
or manually created. The MRP controller can also convert a planned
order into a purchase requisition. Source determination is a separate
function. The buyer receives proposals if, for example, fixed vendors or
outline agreements exist for the material.

The material requirements planning, inventory, production, and

procurement processes all work together to orchestrate a smooth flow of
high quality material. Workflow events are configured to Nestlé’s
requirements by taking into consideration the degree to which automated
or manual controls are required. Vendors quotation and selection
processing is also done with great focus on the SAP implemented for that
purpose at Nestle. The materials requirement planning system at Nestle
usually makes good a calculated definition about the requirements for a
particular territory and at all locations over the enterprise. The stock
management system collaborates with the inventory system in the SAP
system to manage its products.

PROJECT MODELLING:

The following assumptions have been considered at the beginning of the

project modelling:
• The three levels of supply chain consist of multiple producers (also called
factories or suppliers), multiple intermediate warehouses and multiple
distributors (also called customers). Several customers are grouped
together into zones, and are allocated to each of the warehouses
• Road is the only type (mode) of transportation
• Multiple products

• The demand in each period is constant and deterministic.

• Shortage of goods is permissible.
• The time when goods are sent from factories is considered the beginning
of the expiration period
• Consumption of goods from warehouses (removed to deliver to
customers) is in first-in-first-out (FIFO) order.
• The transportation time is neglected as it is a short time compared to the
total time.
• The capacity of each supplier is limited.
• The customer's demand in each period has been estimated.
• Warehouses have limited capacity.
• Each warehouse allocates only a certain space to each type of good.
• There is an inventory limit at the end of each period
• Production cost worked backwards, using sales price and profit-margins
at various echelons
 • Milk-runs considered for transportation from warehouse to customers,
circular path assumed
• Identical storage capacity of all distributors
• Inventory holding costs, transportation costs according to industry
standards
• Production plan for considered zones divided according to contribution
of zones to total sales
• Production capacities for considered zones divided according to
contribution of zones to total sales
• Inventory holding capacities identical for all considered products
• Back-order and expiry before final sales not considered
 Conclusion

To conclude nestle is effectively handling its store keeping with

efficient technological and physical changes bringing efficiency and
competitiveness in the field.
 IT TRENDS IN SCM WITH REFRENCE TO TESLA

Objective

To understand the new IT trends of Tesla

IT TRENDS IN SCM WITH REFERENCE TO TESLA

Business Strategy Analysis

According to the About Tesla page, Tesla’s mission is to accelerate the

world’s transition to sustainable energy. Throwing back to 2008, Tesla
introduced its very first cutting-edge and high- performance electric sports car
— Tesla Roadster. Elon Musk, the CEO of Tesla Motors and Co-Founder,
stated that “Tesla Motors is to help expedite the move from a mine-and-burn
hydrocarbon economy towards a solar electric economy, which I believe to be
the primary, but not exclusive, sustainable solution”(Musk, 2006). The
Roadster is based on the Lotus Elise chassis. It can travel 244 mi on a single
charge with its lithium-ion battery pack, priced at $109,000. Tesla was first
introduced into the automobile market by targeting high-tech car segments as a
Niche Differentiator, with its sustainable competitive advantage to distinguish
itself from the traditional automobile makers with sustainable, eco-friendly
electric cars.
In the meanwhile, Musk also pointed out that “Tesla is to enter at
the high end of the market, where customers are prepared to pay a premium, and
then drive down market as fast as possible to high unit volume and lower prices
with each successive model”(Musk,2006).
 In other words, Tesla’s competitive strategy is a broad differentiation to
target both segments by targeting premium buyers and low-price buyers in the
automobile industry. Based on that generic strategy, Tesla differentiates itself
among the competitors by increasing its research and developing investment
every year to develop a highly innovative unique ecosystem for increasing
returns to an economics scale.

In addition, Tesla provides a variety of products and services all over the
world, including premium electric sedan Model S, Model 3, Model Y, an SUV
version of Model Y. They have a range of 250 miles to 370 miles, plus come
with different battery performance and customizable seats and storage. They
also sell solar roof solutions, solar Panels powerpack, megapack batteries, and
some other related products. Aligned with the broad differentiation strategy,
SolarCity merged with Tesla, Inc. to better build up a clean-energy ecosystem.
Musk said, “we believe quite that Solar city’s technology on the Silevo Front
added to Panasonic’s cell technology will make it the most efficient and
ultimately the cheapest solar cell in the world” (Pressman 2016). To capitalize
on their competitive advantages, Tesla will reduce its material cost on batteries
via Research.

There are quite a few companies also in the electric vehicle (EV)
business, including formidable automobile giants such as Toyota and Ford.
Tesla however, stands out as the only EV maker that has truly captured the
public’s imagination. Although some of the mystique may have come about as
a result of Tesla’s superhero-like founder Elon Musk, the company’s
philosophy has centralised on optimising the consumer experience and
bringing to market a product that people really want. None of this however, is
possible without an incredibly sophisticated supply chain system that
simultaneously reflects Tesla's values.

Despite Tesla’s phenomenal growth in the past few years, the

company is still one of the smallest auto manufacturers in the
world. This means that unlike many of its competitors, Tesla
cannot independently enjoy the same economies of scale. Due to
the nature of their product, Tesla also has to deal with suppliers
that don't usually work with car manufacturers at all - such as
battery suppliers.
Tesla circumvents some of these these limitations by collaborating
with other automobile makers. Partnerships with Daimler and
Toyota for instance, help keep costs low for the purchase of some
basic component parts. Other more unique features such as the
infotainment system however, have to be designed from
scratch. Peter Carlsson, Tesla's VP of Supply Chain, says that
Tesla is trying to develop vehicles faster than their competitors.

"We really want to be able to develop vehicles in a 2 and a half

year time frame. To accomplish that, we need a supplier base that
is faster and more agile than most automotive companies are used
to, which comes down to everything from industrialisation to
tooling lead times. Because if we don't have a supplier base
capable of doing that, it certainly would slow us down."

In short, Tesla takes complete ownership of the supply chain by

carefully picking and choosing between conventional
manufacturing practices and custom designing others that are
unique to its own product, in addition to ensuring good chemistry
with its suppliers.
 CONCLUSION

Tesla desires to develope the IT trends by increasing its research and

developing investment every year to develop a highly innovative unique
ecosystem for increasing returns to an economics scale.
 Issues in relationship management with suppliers with
reference to Amazon

Report on issues in relationship management with suppliers

with reference to amazon

As Amazon.com Inc.’s influence across industries from delivery to cloud

computing and brick-and-mortar retail expands, its suppliers are quickly
losing their negotiating power. (See also: A m azo n’s A pp arel B i z to
H i t $8 5B by 20 20 : Instinet.)

Data from FactSet suggests that least 21 public companies generated

more than 10% of their revenue from Amazon in their most recent fiscal
year. Among these include data center equipment vendor
Optoelectronics, also an Amazon Web Services (AWS) supplier, which
attributed nearly 60% of its sales to Amazon’s site, while freight
company Air Transport Services Group generated 29% of its sales from
the online retail platform. Consumer electronics makers GoPro Inc.
(GPRO), Roku Inc. (ROKU) and FitBit Inc. (FIT), along with Whole
Foods supplier United Natural Foods Inc. (UNFI) also made the list.

While Amazon has helped smaller companies get into the e-commerce
game with bulk orders on its platform, the Seattle-based retailer’s
growing supplier list, including even large public companies, shows just
how vast its platform -- and influence -- has become.

Long-Term Impact
By comparison, Target Inc. (TGT) has just eight suppliers that passed the
10% revenue threshold for disclosure, while e-commerce pioneer EBay
Inc. (EBAY) lists two. Amazon still trails the world’s largest retailer,
Wal-Mart Stories Inc. (WMT) and Silicon Valley tech titan Apple Inc.
(AAPL) in terms of its quantity of large suppliers.

Amazon’s accelerating market influence has provided it with a much

greater deal of leverage over its suppliers. Citing an anonymous source,
CNBC reported that a supplier said Amazon reviews its contract every
year and “plays hardball” to get it to do things such as take on more of
the freight cost between warehouses or buy more ads on its site.

Toughening Standards
As Amazon maintains its direct relationship with consumers and
compiles massive amounts of consumer data, it poses the risk of going
off and making products in-house if suppliers don’t meet its toughening
standards.

BuyBox Experts, a company that aids suppliers in navigating Amazon,

calls
the tech giant the “toughest negotiator” in online and retail combined due
to
the platform’s extremely high visibility and its power to drive sales for
suppliers of all types. This growing market influence, along with
Amazon’s ability to shield companies’ access to their consumers’ data is a
“major concern and has the potential to hurt almost every brand long
term,” according to BuyBox’s
Co-Founder Joe Hansen.

Amazon has a reputation for providing the customers with all things
that they need, all in one convenient space. What has since become called
as 'the Amazon Effect,' the company has successfully managed relations
with millions of customers worldwide without ever meeting them face-to-
face. The entire process of shopping at Amazon is very smooth and easy. It
has a simple and easy-to-use interface, stored personal and card details, and
one-click ordering, all of which make it possible to make purchases quickly
and smoothly.
Customers also get benefit from recommendations of products that are
based on earlier purchases, a concept that has worked well both on the
website and on its Kindle devices. This clever use of customer data makes
sure that its customers continue to feel valued while allowing Amazon to
keep coming up with new and innovative ways of retaining and attracting
customers.
 Conclusion

In conclusion suppliers process is very complex as environmental factors

with traditional factors which amazon is handling well which is leading
Amazon to serve their customers better in order to keep their products
well within the customers jurisdictions.