Professional Documents
Culture Documents
CHAPTER-1
INTRODUCTION
SUPPLY CHAIN MANAGEMENT
Capabilities:
"Clients expect a consistent shopping experience where they can pick the most helpful
method for requesting, get and return their buys, and retailers are answering with a boat
from-store choice. More stores will be utilized as smaller than expected conveyance habitats
where they can satisfy online orders available. Consequently retail production network
directors will turn out to be progressively dependent on the change of physical stores to
satisfaction focuses giving bundle get and send from-store administrations.
This new model will reshape the appropriation technique for some retailers as they merge
actual stores and web based business conveyance to contend in the race for online business
piece of the pie. Contingent upon explicit local requirements, a retailer might utilize quite a
few kinds of satisfaction offices
Examiners keep up with that while certain retailers in certain locales will deliver just from
conveyance focuses, in different areas they will utilize just stores. Different districts might
add another kind of office, metropolitan satisfaction habitats. New satisfaction places (FCs)
— an additional layer than can connect online deals with existing stores — are arising in
closeness to a retailer's current circulation community (DC). In this situation, stock renewal
trucks, on the way to physical's stores from a DC, can come by a FC to get clients' web-
based orders. A FC in close nearness to the retailer's current organization reduces
transportation expenses and gives a retailer admittance to over two times the stock.
There is nobody size-fits all boat from-store production network methodology. The retailer's
current production network organization, its clients, and the idea of its items all shape where
and how merchandise are put away and sent.
As retailers' Boat from Store system advances, a rising interest for distribution center space
is normal. To guarantee stock is accessible when required, the 1,000,000 square-foot internet
business satisfaction focus will become typical. Further, that stock will be enhanced by
products in the actual stores, which will utilize something like 15% of their space for putting
away merchandise for client get
That perceivability is especially significant in when most items have become commoditized.
Gone are the days while estimating, elements, and memorability were sufficient to separate a
business from its rivals. Separation in the worldwide commercial center has as a lot to do
with what occurs in the store network as it does with item development. At the point when
the market hoses the restitution at greater expenses, organizations must rather meet their
productivity objectives by overhauling and upgrading their inventory chains, and afterward
utilize those superior activities to convey esteem added administrations to additional modern
clients. Progressively, coordinated factors pioneers are accused of conveying inheritance
items while additionally supporting the turn of events, creation, and transport of new
contributions.
With a streamlined worldwide production network, an undertaking can address a significant
number of the tensions revealed in the PWC study. Such a framework conveys:
1. Reduced expenses. Organizations that can without much of a stretch access data about
their providers pursue better obtainment choices. Online provider and purchaser local area
the board is one methodology organizations have taken to diminish their provider obtaining
and acquirement costs.
2. Increased straightforwardness. A worldwide business needs a solitary place of access for
its provider data and its purchaser provider networks. With a worldwide view and a
straightforward stockpile base, global production network administrators can distinguish
solid providers anyplace on the planet.
3. Lower gamble. An enhanced store network permits an organization to rapidly survey a
provider's capacity to meet monetary, lawful, wellbeing, quality, and ecological guidelines
and assumptions. Those guidelines vary in view of client and neighborhood norms,
obviously, so adaptability becomes crucial for risk the executives.
4. Support inheritance and new items. The present worldwide inventory network
administrators require a charging accomplice and a provider settlement stage that can uphold
existing items and adjust for new contributions. That stage needs to oblige tax assessment,
invoicing and other basic capabilities. As significantly, it should oblige different and liquid
plans of action to empower the organization to arrive at worldwide business sectors
India’s competitiveness
More than 10 years has passed since India set out on advancement. There has been no
shortage of intense statements certifying India's assurance to obtain the capacities that will
add to its seriousness and empower it to be considered as a part of other perceived
worldwide players (Gupta, 1998). Be that as it may, has India had the option to trade on
inborn and gained benefits out terms of seriousness? Three unique bodies relegate three
distinct grades to India:
(1) The 1999 World Seriousness Year Book, gathered by the Switzerland-based Global
Foundation for The executives Improvement (IIMD), shows that India's positioning in global
seriousness, assessed by applying 287 rules, has gone up by two from being 41st out of 46
nations in 1998 to 39th out of 47 nations in 1999 (Nancy, 1999).
(2) The overview led by the Geneva-based World Monetary Gathering (WEF) for 1999 sets
India in 53rd place of 59 nations in its Worldwide Seriousness Report, down from 50 of
every 1998, and 45 out of 1997 and 1996. It utilizes 179 markers under eight heads
(transparency, government, finance, foundation, innovation, the board, work and common
organizations).
Business, consequently, can never again go about as a confined and free substance in serious
world, the genuine trial of seriousness happens in "global business sectors" (Garelli, 1997;
Salcedo and Grackin, 2000). There is a need to make esteem conveyance frameworks that
are more receptive to quick changing worldwide business sectors and substantially more
steady, engaged and solid.
SUPPLIER MANAGEMENT
Provider The board frames a basic piece of the store network. A decent provider base
guarantees negligible disturbance to processes downstream, great quality materials and ideal
stock degrees of unrefined substances. It additionally gives sufficient trust in the producer
about the capacities of the provider base. In any case, a decent provider base is worked over
the long run and it is something other than obtaining materials. This study targets
distinguishing provider base related issues and afterward measures the degree of certainty
that organizations have in their provider base. This whitepaper centers around the
accompanying three parts of provider the board.
• Provider following
• Generally speaking provider wellbeing, and
• Data offering to providers
Provider Following
Despite the fact that 70% of respondents concurred that provider following is significant, not
very many appear to
embrace it. Our exploration manifests that less than a portion of the example overviewed
direct provider following activity consistently or all the more habitually. This persuades us to
think that regardless of an overall mindfulness that ordinary provider following is pivotal to
business achievement, most associations don't have provider following systems set up.
All around the world prestigious and proficient organizations track two kinds of data for
effective provider
the executives framework.
• Inside provider execution
• By and large provider wellbeing
To be cutthroat in a worldwide climate, Indian firms need to assess provider exhibitions on
an everyday or per shipment premise other than directing occasional provider reviews, which
depend on standard review process designs. Organizations should get ready provider
scorecards demonstrating quality, on-time conveyance, normal expense brought about from
request position to receipt of materials, and so forth.
By and large provider wellbeing
90% of respondents were sure about the size and abilities of their provider base. This
certainty could create from having the right number of providers with important abilities. To
cite a model, when Edscha, a German producer of sun rooftops, entryway pivots and other
vehicle parts failed, BMW acted the hero. Afterward, BMW was prepared to send off its new
Z4 convertible yet understood that Edscha was the main provider of rooftops, which were
appropriate for the Z4. BMW was left with no decision, as fostering another provider would
have required a half year and the organization couldn't bear the cost of any such
postponement. To stay away from such bottlenecks, organizations should follow in general
provider wellbeing. Organizations can either set up their own data gathering frameworks or
choose outsider frameworks that offer provider knowledge in light of data gathered from
various essential and auxiliary sources.
Providers - Vital Accomplices
As far as data sharing, 45% of respondents concurred that the recurrence of data
imparting to providers is directed by the earnestness of the circumstance. This leads us to
reason that even today, data sharing conventions are not obviously characterized in that
frame of mind in India. With consistent data sharing, immense advantages can be
accomplished with almost no work.
Worldwide organizations think about providers as essential accomplices, empowering them
to construct an upper hand over others. The absolute accepted procedures followed by a-list
associations are:
• Customary provider meetings
• Continuous input gatherings and visits
• Early provider association while arranging undertakings or creation
• Imparting execution scorecards to providers every once in a while
Besides, organizations can follow providers in view of significant perspectives, for example,
the capacity to
improve, administrative consistence, and so forth. Furthermore, organizations need to have
provider knowledge and following systems set up to continually screen their production
network.
Risk Management
Risk The executives has now turned into an essential piece of each and every part of
business tasks.
Expanding danger because of psychological oppression, rivalry, capricious climate, and
shortage of normal
assets are main issues for production network chiefs. To protect business tasks from
eccentric, wild occasions that might possibly hamper material
supply, creation and dissemination, increasingly more production network chiefs are turning
towards risk the executives in SCM.
New Zealand's dairy monster Fonterra, for instance, was as of late trapped in the Chinese
melamine milk embarrassment. Despite the fact that Fonterra had some awareness of the
polluted milk as soon as August 2, it couldn't lay out proof that its dairy items were
contaminated with melamine until September 10. The six-week defer in item review caused
a ton of harm to the Fonterra brand and made the organization obligated for indictment under
EU regulations.
Type of Risk Management Adopted
Research study has shown that in spite of developing dangers in each space of store network,
right from acquisition to circulation, mindfulness towards risk the executives has not arrived
at numerous areas of production network the board. While somewhat more than 85% of
respondents have carried out risk the board in unambiguous store network works, for
example, stock and providers, IT security keeps on being a dismissed region. We feel that
there is an enormous chance for making mindfulness and helping associations in executing
an organized store network wide gamble the board structure.
Information Quality is exceptionally basic in guaranteeing that ideal gamble the executives
procedures are set up. In the event that organizations don't have a reasonable thought on the
quantity of things or providers they make due, then it would be challenging for them to make
a decent gamble the executives plan. A huge CPG producer had assessed that the
organization was overseeing data on around 100,000 items; an information quality drive
anyway showed that the number was something like 45,000.
Notwithstanding risk the board on stock levels and providers, associations should likewise
zero in on other potential gamble regions, for example, brand and notoriety risk,
administrative consistence risk, risk because of normal disasters and item danger.
The board of hazard across the inventory network is vital to business food and proceeded
with productivity. A portion of the means that organizations can take to lay out hearty
gamble the executives
methodologies across all elements of their stockpile chains are:
• Proactively distinguish all potential dangers intrinsic in the store network
• Lay out viable control processes pointed toward overseeing risk
• Set responsibility for both inward and outer partners
• Characterize execution measurements for production network risk the executives
IT entrance in Store network
Today, IT is a fundamental and basic business support foundation. An enormous number of
organizations are conveying and utilizing different exchange handling frameworks. In the
present
climate, most organizations have carried out big business complete business bundles to run
their everyday business processes like acquirement, stock administration, dispatch and
monetary administration. Our examination proves this, as over 80% of respondents have
executed IT frameworks for their inventory network.
In any case, when we assessed these IT frameworks in view of the reason for execution, it
was tracked down that a mind-boggling greater part, around 95%, of IT frameworks are
conditional frameworks and the sending is restricted to specific capabilities like stock,
creation arranging, bookkeeping and shop floor. There is gigantic potential to expand the
organization of IT frameworks to regions like strategies and warehousing, deals and
dispersion and in choice emotionally supportive networks like APO, BI and Spend
Examination.
Inventory network innovation has developed, and organizations overall are taking a gander at
additional mind boggling undertakings like interaction respectability, exchange
dependability, and knowledge for better independent direction, information perceivability
and more straightforward coordination with their provider's store network. Organizations are
additionally coordinating RFID advancements for further developed stock following.
inside various practical regions yet in addition with different IT frameworks of their clients
and providers. As the requirement for correspondence and joining among various
innovations emerges, organizations additionally look for normal principles that would
guarantee information straightforwardness and
interoperability. The absolute prescribed procedures in innovation, for example, Spend The
board, are quick becoming general principles. Today, IT should be engaged towards giving
knowledge and understanding to preferred dynamic rather over giving monstrous
information from ERP/SCM or other comparative frameworks that frequently overpowers
clients however isn't of much functional use to them. Guaranteeing the accessibility of
predictable data across various applications is a significant test. Staying up with the latest,
removing lastly changing it for use across numerous applications require extensive ability.
On-request, facilitated administrations offer organizations practical arrangements with the
right blend of innovation, cycles and skill. They guarantee that information is precise,
exhaustive and reliable.
The exploration likewise attempted to evaluate different trouble spots right now present in
supply chains. A greater part of respondents, around 45%, put Stock Decrease in the top
opening in their rundown of store network issues. This was likewise confirmed by the way
that around 70% of respondentswere conveying over 30 days of stock. Provider the board
came next at 40%,while working capital decrease came third at 17%. Indian businesses are
needing enhancement devices and better cycle displaying to take advantage of accessible
assets and support lean tasks.Request arranging was viewed as another area offering degree
for development, as around 40% of respondents said that jumble among figure and genuine
creation is in the scope of 20% to 40%. This region has great potential for development
through the presentation of interest arranging utilizing factual strategies.
LITRETURE REVIEW
2.1 Introduction
Over the past few years, more emphasis has been placed on gaining competitive
advantage by organizations locally and internationally by incorporating Supply
chain management practices in their operations. Many organizations have
realized the importance of creating an integrated relationship with the suppliers
and customers. This simultaneous integration of customer requirements,
internal processes and upstream supplier performance is referred to as supply
chain management (Tan et.al 2010). With dwindling support from central
government to its agencies, there is need for better ways for managing
operations so as to reduce cost and increase efficiency. Adoption of good SCM
practices can thus provide a good avenue to meet these goals.
Various studies have been conducted to identify these different SCM practices.
(Koplin et.al. 2007) determined the underlying dimensions of SCM practices
and tested empirically and framework identifying the relationship among SCM
practices, operational performance and SCM-related organizational
performance for SMEs in Turkey. The set of twelve SCM practices identified
were: close partnership with suppliers; close partnerships with customers.
Supply Chain benchmarking; JIT Supply Procurement, few suppliers; many
suppliers; strategic planning; outsourcing; sub-contracting; holding safety stock
and 3PL (Chen and Pawlraj,2014) study on development of SCM practices
identified a set of four reliable and valid practices significant to SCM.
Ulusoy (2008) identified four SCM practices while assessing the supply chain
and innovation management in manufacturing industries of Turkey, They are;
logistics, supplier relations, customer relations and production. Similarly a
study conducted by Lee and Kuncade (2013) proposed six major dimensions of
SCM: partnership; information technology; operational flexibility; performance
measurement; management commitment and demand characterization.
Kuei et.al (2011) on the other hand used eleven supply quality-management
practices to study and test manager’s perception on the association between
Supply chain quality management practices and organizational performance.
The eleven factors were; Top management leadership, training; product design,
supplier quality management; process management; quality data reporting,
employees’ relationships; customers’ relations, benchmarking; supplier
selection; and supplier participation. They found that perceived improvements
in organizational performance are associated with improvements in supply
chain quality management.
Li et.al. (2005) defined SCM practices as the set of activities that organizations
undertake to promote effective Management of the Supply chain, SCM practices
are described include supplier partnership, outsourcing, cycle-time
compression, continuous process flow and information technology (IT) sharing,
supply chain practices is a way of reducing duplication effects by focusing on
core competencies, and use interorganisational standard such as activity based
costing or EDI and eliminating un necessary waste along the supply chain.
Green Supply Chain Practices are divided into four dimensions, internal
environment management, external environment management, investment
recovery and eco-design (Zhu and Sarkis, 2014) as quoted by Rha, (2009). For
an Organization to improve its environmental performance, its internal
environment performance is critical (Zhu et.al, 2014) and this can only be
achieved through quality management which ensure adherence to vigorous
quality control by learning from experiences of their quality management
programs (Zhu and Surkis, 2014). By receiving the certificate for the ISO 14001
Environmental Management System (EMS) Standard, Organizations are able to
create structured mechanisms for continuous improvement to environmental
performance (Kitazawa and Srakis, 2009).
Betty Feng, (2009) in the article Reduce Supply Chain Carbon Footprint,
highlights the many trade off decisions to be made in green supply chain
management optimization with the goal of maximizing Carbon emission
reduction. She suggested environmental initiatives from supply chain, functions
point of view and divided the functions into five groups’ product development,
procurement, production, distribution and transportation.
Green Supply chain improves operations by employing an environmental
solution through triple a concept. That is it improves Agitility by helping
management mitigate risks and speed innovations, increases Adaptability since
it leads to innovative processes and continuous improvements and also it
Promotes Alignment of business and principles. Abrahams (2011) tested the
impact of green supply chain capabilities on performance of oil marketing firm.
Collaboration between supply chain partners will reduce risk and great improve
the efficiency of the overall pipeline. Supply chain efficiency therefore relies
heavily on successful long-term relationships (partnerships) where information
sharing, joint problem solving, and trust are key success factors (Hugo, et.al
2014:11). Supplier development and the evaluation of suppliers performance is
an issue of managing the supplier relationship. If the supplier’s performance is
perceived as inadequate, it should be assisted to enhance its performance by
means of trainings and continuous improvement teams (Gadde & Hakansson,
2001: pp 145-152).
Information Technology
Supply Chain Management has emerged quickly throughout the early part of
21st Century due to improvement in technology. Technology is increasingly
affordable and available to help organizations to take advantage of supply chain
strategies. Because of the competitive pressures facing business it is critical for
them to use supply chain strategies to create synergies with supply chain
partners in order to succeed in the global competitive environment (Chairman
et.al, 2012:34). High level best practice for SCM, technology can apply to any
business, even though the operation may be specific to an organization
implementing a specific SCM System, for example, could be a waste of money
if the overall operation is a problem. Automating a broken process does not fix
the process.
Supply base management as a best practice plays a crucial role for organizations
since it enhances global supply chain liquidity and helps maintain record. It also
allows identification of new suppliers, evaluation of existing suppliers, improve
supplier performance and supplier portfolio. It is possible to measure and
develop supplier performance in a proactive way by mixing and collaborating
tools. Consequently there is reduction in risk and also ensuring that the
suppliers are the best in class.
Lean supply base enables organizations to audit their suppliers and reviews
them prior to entering into partnerships. This will enhance level of trust and
mutual understanding.
Lean supply base through partnerships improves business processes and leads to
improved products and reduction in costs and inventories. Best practices in
supply base management arms organizations with means and ways to use
procurement as a competitive edge to their supply chain services. Forging closer
relationships with the remaining suppliers leads to lower total costs and
inventories, improved working capital and better products. Narrowing the
supplier base also benefits remaining vendors who usually increase business
volumes in exchange of lower unit pricing.
Outsourcing
Outsourcing has been defined as the process of engaging a third party provider
to perform services for the host organization that were previously performed
in-house (Domberger, 2010). In this definition, third party provider (3PL)
refers to any entity outside the traditional supplier-carrier- consumer
relationship. Within any organization, public or private, there may be valid
business and strategic reasons to outsource parts of the operation so the business
can focus on its core capabilities. This process requires both an objective
evaluation of internal performance and capacity, followed by a search for
reliable partners that can deliver responsive services.
Logistics
At the heart of an organization are the operations that create and deliver the
products. These operations take a variety of inputs and convert them into
desired outputs. The inputs include raw materials, components, people,
equipment, information, money and other resources. Operations include
manufacturing, serving, transporting, selling, training among others with the
outputs being goods and/or services. Logistics manages the flow of inputs from
suppliers, the movement of materials through different operations within the
organization, and the flow of materials out to customers (Wisner, 2009).
Morash and Clinton (1997) proposed a schema for future supply chain research
that included transportation and logistics capabilities as the link between supply
chain structure and performance. Wisner (2009) hypothesized a positive link
between logistics strategy and organizational performance, he did not report
data collection related to logistics strategy measurement and did not report
results related to his hypotheses. Schramm-Klein and Morschett (2006) assessed
the relationship between logistics quality and the organizational performance of
firms in the retail sector.
Kasimet al. (2007) state that materials management becomes problematic due to material
shortages, delivery delays, price fluctuations, damage and waste as well as a lack of storage
space. They reported on the early stages of research developing a new ICT-based approach
to materials management in construction projects. It then examined the ICT tools and
techniques currently used in construction projects. Poor handling of building materials
affects the
Overall performance of construction projects in terms of time, budget (cost), quality and
productivity. Waste of material should also be minimized during construction to avoid loss
of profits for construction companies. There is a need to develop new approaches to material
management in construction projects to improve the efficiency of the production process.
Donyavi Flanagan et al. (2009) found that small and medium-sized enterprises (SMEs)
make up a large part of the construction sector. Large companies have the capacity and
ability to use sophisticated information technology and management technology to control
the work and material for projects. Materials can account for up to 70% of a project's
construction costs, so any ways to reduce waste and improve productivity have major cost
and time benefits. Now Technologies can help manage the flow of materials, bringing lower
costs to contractors and lower prices to customers.
Patel Vyas et al. (2011) found that a void is created by the lack of proper materials
management at construction sites. Research has shown that building materials and equipment
can represent more than 70% of the total cost of a typical construction project. One of the
main problems in delaying construction projects is poor material and equipment
management.
Meghani Vyas Hingu Bhavsar et al. (2011) found that 4-M (Material, Manpower, Money,
Machine) play a crucial role in construction. This paper describes the main results of
research studies carried out in Anand (Gujatrat), India, which investigated the occurrence of
material waste at five construction sites at different locations in Anand, India. Most of this
waste can be avoided through strict monitoring and control of the material. Even after a
certain level of allowable waste rate in each project, this limit went beyond the allowable
limit, ultimately affecting the project profit or return on investment (ROI). To compare
material waste in different construction projects in Anand and make the necessary
suggestions for waste reduction on site.
They concluded that the fact that very few projects are well planned before implementation
and projects are always subject to timeouts for a number of reasons. Materials account for
more than 60% of the total project cost. Material management and control is therefore a
serious issue. This research is an attempt to find a method to control procurement and
storage costs in construction projects
Phani Mathew Sasidharan et al. (2013) came to the conclusion that the aim of the present
study is to understand all problems that arise in the company due to improper application of
material management. The results obtained show that the main procurement problem is
related to schedule delays and the lack of the specified quality for the project. To prevent this
situation, it is often necessary to spend important resources such as money, human resources,
time, etc. After examining all the issues, they gave some conclusions, on-site analyzes were
carried out using the prior knowledge of materials management, and new methods were
implemented at the work site, based on the current construction scenario. (21) Liwan Kasim
Rozlin et al. (2013) found that inventory is particularly important in construction projects, as
the right amount of inventory will ensure that all construction activities can be carried out
according to planned schedules. The main problems in Malaysian construction projects
related to material tracking practices are excessive paper-based reports, lack of up-to-date
information on the status of materials, theft and labor-intensive processes. Thus, there is a
need for the application of advanced technology such as RFID to improve material tracking
practices for inventory management purposes in construction projects. Therefore, they
concluded that contractors should start implementing new technologies such as barcoding,
RFID, and wireless technology to to automate material tracking practices. It is important to
move from manual to automated material tracking using technology as it can facilitate
material tracking for inventory management processes. (34) Sindhu Nirmalkumar
Krishnamoorthy et al. (2014) noted that the inventory management system includes
procurement, storage, identification, retrieval, transportation, and construction methods. The
first part is based on the implementation of a questionnaire survey in various construction
companies. In the second part, these results are analyzed using the Statistical Package for
Social Sciences SPSS. ABC analysis is one of the commonly used approaches to classify the
inventories and collect the case study of a company. She focused on a few points mainly in
the construction industry: contractor involvement in materials management, need for
inventory management, inventory management as business grows, importance of comparing
inventory with other plants, maintaining safety.
Lenin Kumar et al. (2014) found that a void is created by the lack of proper materials
management at construction sites. Research has shown that building materials account for
60-70% of the total cost of a construction project. Material mismanagement reduces the
contractor's profit, resulting in huge losses and putting the project in deep trouble. Therefore,
proper management of this largest single component can improve a project's productivity and
cost-efficiency, and help ensure its timely completion. The results obtained from the ranking
factors show that the top five causes of cost overruns are design issues, market conditions,
store issues, contractor issues and external issues. They came to conclusions: Identifying
variables affecting construction time and cost overruns shows that design issues, customer
issues, contractor issues, location issues, labor and equipment issues, storage issues, external
issues, market conditions are responsible for the cost overruns of building construction
projects as described.
Keitany Wanyoike Salome et al. (2014) found that material management is a tool to
optimize performance in meeting customer service needs while increasing profitability by
minimizing costs and making optimal use of available resources. The main objective of the
study was to evaluate the role of materials management on company performance. In
particular, the study should evaluate how inventory control systems and Lead times impact
organizational performance. The ratings showed that inventory control systems played a
crucial role in the performance of organizations and as such organizations must do so
organizational performance. The results also showed that the coefficient correlation between
inventory control systems and
Ashokkumar et al. (2014) stated that the development of construction industry depends on
the quality of construction projects.Quality is one of the critical factors in the success of
construction projects. This project mainly focuses the importance and factors that affects the
quality management in the execution (construction) phase. He concluded that the main
factors, which affect the construction quality and increase in cost of construction due to
quality defect. This study will create the quality management awareness to all level
construction companies’ especially small-scale companies in order to get the get the major
factors and issues which affects the construction quality and that create a chance for find out
the remedial measure. This thesis is useful for minimize the material wastage, workmanship
wastage, time wastage and indirect cost.
Ngwu Okolie Ezeokonkwo et al. (2015) identified the key areas where material
management is lacking, where improvements could be made to increase productivity. The
collected data formed the background of structured questionnaires for proper analysis and
recommendations. Eighty-seven of ninety questionnaires sent to sites were duly completed
and returned. The material schedule would further aid in material planning, identifying
required materials and making deliveries at scheduled times and dates. As the problem areas
have been identified, the contracting organizations should take action to improve their
performance. This could be achieved by hiring full-time estimates.
Abhilin Vishake et al. (2015) described that the main objective of the study was to assess the
role of materials management in construction projects. ABC analysis is one of the commonly
used approaches to classify the stocks and case studies of companies are collected. By using
ICT techniques, the exact material consumption, the material stored and the location of the
material can be determined. However, most contractors have not really applied some
building materials management tools and techniques, such as: B.: Creating data for material
categories, local suppliers, international suppliers and material costs, updating data for local
suppliers, international suppliers, material costs when changing and using the Internet to
know the new materials and their prices, providing a list of materials or quantity surveyors
and materials surveyors.
Gulghane Khandve et al. (2015) found that the total cost of materials can account for up to
60% or more of the total cost of a construction project, depending on the type of project.
This demonstrates that pre-planning and procurement of materials are equally important in
controlling overall project costs. It turns out that minimizing material waste during the
construction phases is important to avoid loss of profits. It is noted that extensive research
has been conducted to examine individual construction waste management strategies at a
particular stage of a construction project.
Mallawarachchi Senaratne et al. (2015) found that construction projects are always expected
to strike a balance between cost, time and quality. It is possible to have high quality and low
cost, but at the expense of time, and vice versa, high quality and a fast project, but at cost.
The aim of this study is therefore to examine the importance of quality for the success of
construction projects. In addition, poor quality could lead to unnecessary costs for the
organization where it could incur costs due to errors, assessment and prevention.
Implementing an appropriate quality management plan is important early in the project
where quality drawings, quality standards and constructability of the design can lead to
improvement in project quality.
Shet Sayali, Narwade Raju (2016) state that the average material cost accounts for 60-80%
of the total project cost. Cost, quality and time are important goals of materials management.
This can be achieved through the use of material management techniques. The ABC
analysis, VED analysis and SDE analysis are different material management techniques. The
ABC analysis is based on the inventory value of the material. The VED analysis gives
priority to the usefulness of the material, while the SDE analysis indicates the availability of
the material in the market. They indicate some points that should be considered when
ordering material. I) Planning of activities II) Amount of material needed. III) Transport
capacity and time required to reach the site. IV) Supplier's previous records, location. The
23.07% of the material accounts for 67.30% of the total project cost. The 30.76% material
has 25.01% cost. The 46.17% of the material accounts for 7.69% of the total project cost.
The ABC analysis yields less interest costs compared to other techniques. It shows that ABC
analysis is more economical than any other method.
Krishna Satyanarayana Rao et al. (2017) found that materials are fundamental core organs of
any product, accounting for about 60-70% of the total production cost. Material management
will try to solve the problems, namely material shortages, delivery delays, price fluctuations,
damage and waste, and lack of storage space. After the analysis, they concluded that the
materials are managed in a number of phases, e.g. B. Procurement, transportation, shipping,
sorting, warehousing, warehouse maintenance, delivery to production centers, etc.
Minimizing risk at all the above levels not only leads to better management resource
utilization, but also serves as a competitive advantage.
Antony Roger Navodaya et al. (2017) studied that although the materials and components
used in construction account for more than 60% of the total cost of the project, the methods
to manage them depend entirely on human skills. They said this methodology uses the
combination of Near Field Communication (NFC) and Global Positioning System (GPS)
technologies, which can enable cost-effective, easy-to-implement solutions for identifying
and tracking materials and components. This system is fully automated and provides
effective identification and tracking at all stages such as production (offsite), en route
(transport), construction site (onsite). This technology helps to get real-time and accurate
information about the construction resources. It also helps to instantly share the information
with all stakeholders in the project. This approach uses the combination of NFC and GPS as
a powerful handheld tool that enables field data to be collected, stored, shared, and reused
accurately, completely, and near-instantaneously.
Patil Sarode et al. (2017) found that the construction industry today is a very advanced and
innovative industry compared to other industries in the world. In any construction industry,
for financial gain, human and property needs, various fast track techniques are used to
complete construction works. They analyzed the correlation coefficient between the project
costs and the material costs of 15 construction sites using the following correlation methods
with the results of the SPSS statistical software, Pearson correlation 0.921+1 > 0.921 > 0 -
the correlation between the two variables is said to be perfect and positive Kendall tau b
0.543+1 >0.543> 0 – the correlation between the two variables is said to be perfect and
positive. Spearman rho 0.688+1 >0.688> 0 – the correlation between the two variables is
said to be perfect and positive. Therefore, the data analysis of the total project cost and the
project material management cost is perfect and gives positive correlation results; Data is
useful for future surveys.
1.Three different types of material management processes are practiced in Surat construction
projects.
2. There is a significant relationship between these material management process types and
project value.
3. The top three causes of ineffective material management were identified as price matched
to competitor price; Time spent investigating unqualified suppliers and material availability.
4. The main causes identified for ineffective material management are consequences of
existing problems in the Surat construction industry, such as dependency on imported
building material, few suppliers in the market and lack of skilled workers.
5. Bearing issues are a well-known issue among construction professionals that are no longer
considered a threat because they are well prepared and mitigated to this issue.
6. There is a significant relationship between the nature of the materials management process
and project delivery in terms of delays and cost overruns.
METHODOLOGY
(a) Methodology used for Data Collection: The project should be based on primary data
Research Design
Data Collection
The researcher has used both the primary and secondary research methods to collect the
information.
Primary data
Sample Size: 80
Secondary data
Website
Newspaper
Magazines
Online Journals
Project Material
Books
Research Instrument
Questionnaire Survey
Researcher has presented the collected primary data with the help of graphs. Simple
percentile method has been used. Interpretation has also done for each graph.
ANALYSIS &INTERPRETATION
TABLE NO.01
CHART NO.01
60
54
50
40
30 27 NO.OF RESPONDENT
PERCENTAGE
20 18
14
9 8
10 7 6
3 4
0
21-30 31-40 41-50 51-60ABOVE 60
ANALYSIS:-
The above table and chart graph indicates that 8% of respondents are
lies between Above 60 age group, 6% are more than 51-60 age, 14%
respondents are in between 41-50 age group, 54% of respondents are
lies between 31-40 and 18% of respondents are lies between 21-30 age
group.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are
lies in between 31-40 age group (27) i.e. 54% of the total population
TABLE NO.02
CHART NO.02
70
60
60
50
40
NO.OF RESPONDENT
30
30 PERCENTAGE
20 17.33
14.66
ANALYSIS:- 9
7 8
10
4
The above
0 table and chart graph indicates that 60% 0n internet, 17.33
Internet Newspaperword of mouth others
on newspaper, 14.66 on word of mouth , 8% on others.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are
lies in Internet (30) i.e. 60% of the total population.
TABLE NO.03
CHART NO.03
45
40 42
3532
30
25
20 16 PERCENTAGE
15
10 9.333333333
ANALYSIS:-
5 5 6
4 4.666666667
0
2
The above table and chart graph indicates that 9.3% 0n Poor, 32% on
PoorFairGoodVery goodExcellent
Fair, 42% on Good, 4% on Very Good and 4.6% on Excellent.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in Good (21) i.e. 42% of the total population
TABLE NO.04
CHART NO.04
35
33.333
30
26
25
20
20
16.66666667 17 NO.OF RESPONDENT
15 PERCENTAGE
13
10
10 8
5 4
2
0
Poor Fair Good Very goodExcellent
ANALYSIS:-
The above table and chart graph indicates that 16.6% 0n Poor, 33.3%
on Fair, 26% on Good, 20% on Very Good and 4% on Excellent.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are
lies in Fair (17) i.e. 33.33 of the total population
TABLE NO.05
CHART NO.05
60 56
50
40
30
28 NO.OF RESPONDENT
22 PERCENTAGE
20 16
11
8
10 4
2 1 2
0
Poor Fair Good Very goodExcellent
ANALYSIS:-
The above table and chart graph indicates that 16% 0n Poor, 22% on
Fair, 56% on Good, 4% on Very Good and 2% on Excellent.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in Good (28) i.e. 56% of the total population
TABLE NO.06
CHART NO.06
70
60
60
50
40
40
NO.OF RESPONDENT
30
30 PERCENTAGE
20
20
10
YES NO
ANALYSIS:-
The above table and chart graph indicates about deliver activity that 60%
say Yes and 40% say No.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in Yes (30) i.e. 60% of the total population.
TABLE NO.07
CHART NO.07
50
45 44
40
36
35
30
25
20 22 NO.OF RESPONDENT
18 PERCENTAGE
15 10
10 8
5 4
5 1 2
0
PoorFairGoodVery goodExcellent
ANALYSIS:-
The above table and chart graph indicates that 10% 0n Poor, 36% on
Fair, 44% on Good, 8% on Very Good and 2% on Excellent.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in Good (22) i.e. 44% of the total population.
TABLE NO.08
CHART NO.08
40
34
35
3028
25 24
17
20 NO.OF RESPONDENT
14 14
15 12 PERCENTAGE
10 7
5
0
ANALYSIS:-
The table and column chart showing that the number of days taken to
correct the products and services by Big Basket employee and the
respondents given their feedback, these are 1 Day 14 i.e.28%, More
than 1 Day 17 i.e.34%, More than 3Days 12 i.e.24%,More than 9Days 7
i.e.14% of the total population.
INTERPRETATION:-
In the following data it clearly shows that the Big Basket is able to
solve customer‟s problem as early as possible but also the same way
there are more number which showing the delay of more than 1 day in
correction of problems of customers.
TABLE NO.09
CHART NO.09
70
60
50
40
30 NO.OF RESPONDENT
PERCENTAGE
20
10
Yes NO
ANALYSIS:-
The above table and chart graph indicates that 37.33 Yes and 62.7% No.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in No(94) i.e. 62.67% of the total population
TABLE NO.10
CHART NO.10
70 66
60
50
40
33 NO.OF RESPONDENT
30 PERCENTAGE
26
20
13
10 6
3 2
1
0
Very high High Average Low
ANALYSIS:-
The above table and chart graph indicates that 6% Very high, 26%
High, 66% Average and 2% Low.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in No (33) i.e. 66% of the total population
TABLE NO.11
CHART NO.11
70
6058
50
40 36
NO.OF RESPONDENT
29 PERCENTAGE
30
20 18
10
4
1 2 2
0
Very high High Average Low
ANALYSIS:-
The above table and chart graph indicates about discount that 2% Very
high, 4% High, 36% Average and 58% Low.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in No (29) i.e. 58% of the total population
TABLE NO.12
CHART NO.12
35
32
30 28
26
25
20
16 NO.OF RESPONDENT
15 14 PERCENTAGE
13
10
10
5
5 4
2
0
Poor Fair Good Very goodExcellent
ANALYSIS:-
The above table and chart graph indicates about overall satisfaction
that 4% excellent, 10% very good, 32% good, 28% fair and 26% poor.
INTERPRETATION:-
From the above graph, it can be inferred that mostly respondents are lies
in good (16) i.e.32% of the total population
CHART NO.13
4542
4038
35
30
25
21 NO.OF RESPONDENT
19
20 PERCENTAGE
15
10
10 6 5
5 3 4
2
0
IntegrityCommitment Speed PassionSeamlessness
ANALYSIS:-
The above table and chart graph indicates about Values adaptation by
Big Basket.com that 6% of integrity, 38% of commitment, 42%of
speed, 10% of passion, 4% of seamlessness.
INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies
in Speed (21) i.e. 42% of the total population.
TABLE NO.14
CHART NO 14
40
35
30
25
20
15
10
5 NO.OF RESPONDENT
0 PERCENTAGE
ANALYSIS:-
The above table and chart graph indicates about The factors which
affect the operations in warehouse that 26% of Non-cooperation, 10%
of Quality factor, 38% of Motivational factor, 26% of Team work
factor.
INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies
in Motivational Factor(19) i.e. 38% of the total population.
TABLE NO.15
80
70
70
60
50
40 35 NO.OF RESPONDENT
PERCENTAGE
30 26
20
13
10
4
2
0
Yes Not Sufficient Not at all
ANALYSIS:
The above table and chart graph indicates about the supply chain
management department is having sufficient transportation 70% of
Yes, 26% of Not Sufficient, 4% of Not at all.
INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies
in yes (35) i.e. 70% of the total population.
CHAPTER-5
CONCLUSION
In the present powerful business climate, the rate at which new items arrive at the market has
expanded massively. In addition, because of serious evaluating and imaginative showcasing
techniques, the accessibility of items must be guaranteed with impeccable timing at the right
cost at areas closer to the end client. This requires synchronized simultaneous tasks by
experts to fulfill the assumptions for quality-and cost cognizant clients.
The inquiry before organizations is the way they can productively work and have practical
experience in all elements of the store network, including Obtaining, Inbound Coordinated
operations, Warehousing, Creation Booking and Arranging, Assembling, Outbound
strategies, dissemination, Provider Following, Provider Chance Administration and Data The
board. Organizations overall are connecting with experts in these fields for nimble and
perfect executions. This pattern is finding Indian firms also, even as they endeavor to endure
worldwide rivalry.
Overseeing production network in such a tremendous nation is generally trying for any
association due to strategic policies, unofficial laws, innovation capacity, transportation
foundation, and so on. The ongoing paper has investigated Indian associations for their
ongoing level of inventory network the executives rehearses. It has illustrated the system of
accomplishing seriousness by arrangement of production network methodology with
business technique giving due inclusion to three aspect to be specific targets, cycles and the
executives center. The examination discoveries uncover that the majority of the Indian
associations have adjusted their store network targets with the business goals. They are
presently on course of adjusting their cycles and the board center according to the central
areas of client support, benefit augmentation and functional greatness. An upgraded degree
of intensity would require Indian associations to deal with the three-layered arrangement to
accomplish the plan set by the business system. The production network arrangement model
recommended in this paper gives a structure for acknowledging genuine inventory network
effectiveness and intensity.
REFERENCES
1. http://www.scmr.com/article/
retail_supply_chain_managers_anticipate_new_trend_in_warehousing
2. http://www.inboundlogistics.com/cms/article/challenges-for-todays-global-supply-
chain-cost-profitability-and-personalization/
3. http://www.inboundlogistics.com/cms/article/a-lean-and-agile-supply-chain-not-an-
option-but-a-necessity/
4. http://www.inboundlogistics.com/cms/article/from-the-outside-in-supply-chain-as-
strategic-advantage/
5. http://www.inboundlogistics.com/cms/article/supply-chain-relationship-management/
6. http://www.insead.edu/facultyresearch/research/doc.cfm?did=19631
7. http://www.bizresearchpapers.com/15.%20Aarti.pdf
8. file:///C:/Users/Shakti16/Downloads/0deec5295454ab5c20000000.pdf
9. file:///C:/Users/Shakti16/Downloads/ScopeCGN%20Study%20on%20Indian
%20Supply%20Chain.pdf
10.http://scm.ncsu.edu/scm-professionals