A Project Report on

“A STUDY ON SUPPLY CHAIN IN OPERATION MANAGEMENT

AT PISPL”
( Parekh Integrated Pvt. Ltd.)

Submitted to

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF
MASTER OF
BUSINESS ADMINISTRATION-(MBA)

SUBMITTED BY
MISS. DIVEKAR SAMPADA ANIL.

UNDER THE GUIDENCE OF

PROF- INAMDAR T.B.

Shri Gajanan Maharaj Shikshan Prasarak Mandal's

SHARADCHANDRA PAWAR INSTITUTE OF MANAGEMENT

At. Dumbarwadi (Otur) Po. Khamundi

Tal- Junnar Dist- Pune, 410504

(2022-2023)
 DECLARATION

I MISS. DIVEKAR SAMPADA ANIL , hereby declare that project report entitled “A STUDY ON SUPPLY
CHAIN IN OPERATION MANAGEMENT AT PISPL” with reference to PISPL prepared by me under
the guidance of PROF. INAMDAR T.B., ,faculty of M.B.A Department, SHARADCHANDRA PAWAR
INSTITUE OF MANAGEMNET.

I also declare that this project work is towards the partial fulfillment of the university regulations for the
award of the degree of Master of Business Administration by SAVITRIBAI PUHLE PUNE
UNIVERSITY.

I have undergone a project for a period of sixteen weeks. I further declare that this project is based on the
original study undertaken by me and has not been submitted for the award of a degree/diploma from any
other University/Institution.

Signature of Student

Place:

Date:
 TABLE OF CONTENTS

CHAPTER PARTICULAR PAGE NO.

CHAPTER 1 INTRODUCTION 1-13

CHAPTER 2 INDUSTRY & COMPANY PROFILE 14-19

CHAPTER 3 THEORETICAL BACKGROUND OF THE STUDY 20-34

CHAPTER 4 DATA ANALYSIS & INTERPRETATION 35-59

CHAPTER 5 FINDINGS , SUGGESTION & CONCLUSION 60-64

BIBLIOGRAPHY & WEBLIOGRAPY 65-66

TABLE PG
NO TITLE OF TABLE NO.
1 TABLE SHOWING AGE OF RESPONDENTS 35
2 TABLE SHOWING SOURCE OF INFORMATION OF RESPONDENTS 36
3 TABLE SHOWING PRODUCT AND SERVICE OF RESPONDENTS 37

4 TABLE SHOWING PRODUCT CLEANLINESS OF RESPONDENTS 38

5 TABLE SHOWING RESPONSE TO PRODUCT ORDERED 39
6 TABLE SHOWING DELIVERY TIMING 40
7 TABLE SHOWS ABOUT DELIVERY ACTIVITY 41
TABLE SHOWING CORRECTIVE ACTION IF NOT MEETING
8 CUSTOMER NEED 42
9 TABLE SHOWING FULLFILLING CUSTOMER ORDERED PRODUCTS 43
10 TABLE SHOWING FEEL ABOUT PRICE OF PRODUCTS 44
TABLE SHOWING FEEL ABOUT DISCOUNT OF
11 PRODUCTS 45
12 TABLE SHOWING OVERALL SATISFACTION 46
TABLE SHOWING VALUES ADAPTATION BY DURING
13 PROCESS 47
TABLE SHOWING THE FACTORS WHICH AFFECT THE OPERATION
14 IN WAREHOUSE 48
TABLE SHOWING DEPARTMENT IS HAVING SUFFICIENT
15 TRANSPORTATION 49
TABLE SHOWING ATTENTION AND PROGRESS TO BOOST THE
16 PRODUCTION 50
TABLE SHOWING FACING PROBLEM IN TAKING CARE OF THE
17 RAW MATERIALS 51
18 TABLE SHOWING TECHNICAL ISSUES IN OPERATING MODLE 52
TABLE SH0WING WORKING STRATEGIES OF OPERATION
53
19 DEPARTMENT
TABLE SHOWING REGARDING FROM HOW LONG VENDORS
54
20 SUPPLYING GOODS
TABLE SHOWING REGARDING FROM HOW LONG VENDORS
55
21 SUPPLYING GOODS
TABLE SHOWING ABOUT QUALITY CHECK FOR SUPPLYING
56
22 GOODS
23 TABLE SHOWING 'YES' RATE THE QUALITY POLICY 57
24 TABLE SHOWING REGARDING RECEIVING SCHEDULE 58
25 TABLE SHOWING THE PROCUREMENT PRICE OF PRODUCTS 59
 EXECUTIVE SUMMARY

I have undertaken my Internship with Supply Chain in operation Management at PISPL of

Supermarket Grocery Supplies Private Limited. Supply chain as a whole very big area for
covering in just 16 weeks, so I select a particular area of supply chain in receiving process and
with the help of some company people I select a topic that is SUPPLY CHAIN IN OPERATION
MANAGEMENT.

Today stock out is the major retail industry is very new and India is a very diverse country
different people like different things, they have different culture different preferences so the
stock out problem is major issue. The second part of my problem is Damages/wastages of
inventory which is more important then shortages because when any inventory is damaged then
there is both financial loss either for vendor or to company and also shortage for that damaged
inventory in the warehouse.

I divided my project into two parts of one month each. In the first part of my project I visited the
warehouse of company and hub of company.

I try to understand there way of working, reasons of shortage and damages in the warehouse and
in delivery. I try to understand the way of working in hub. In the second part I visited different
hub of company in the Bangalore region and the shortage and damages of merchandise at
warehouse.

After practically working in warehouse I realized that are some problems due to which the
problems of shortages and damages occurs and I try to give come recommendation which may
be helpful in getting out of from these problems. So on these basis I have discussed all problem
and solution related to these in my report.
 CHAPTER 1
INTRODUCTION

1.1 PROJECT TITLE

A STUDY ON SUPPLY CHAIN IN OPERATION MANAGEMENT AT
“PISPL”.

1.2 PROBLEM STATEMENT

The research is often conducted because of some problems which act as an obstacle in the
working of the organization which affects the total productivity of management and harming
the relationship with customer. The problems which are being faced by the company are
insufficient loading points, late release of loaded trucks, and problem of defects during transfer
of goods. The other problem occurred while operation is damages/wastages of
inventory which is more important then shortages because if there will be damaged in
inventory then there isboth financial loss either for vender or to the company and also due
the damages of inventory in store it causes shortage.

1.3 OBJECTIVE

 To study the current SCM strategies of the company.

 To find out the various factors affecting the SCM in PISPL.

 To analyze the activity of dispatch section.

 To estimate the satisfaction levels of the customer.

 To suggest measures to improve the SCM effectiveness of the company.

1.4 SCOPE OF THE STUDY

Supply chain management is concerned with integrating, aligning and managing the inter-
organizational supply chain regarded as the competitive entity, included internal
integration in each single company that is part of a given supply chain. The study will be
focused on the analysis of then process in the supply of goods and delivery through SCM

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Thus the scope of study is within the constraints of the SCM followed HM in the procurements
and deliveries.
1.5 RESEARCH METHODOLOGY

1.5.1 RESEARCH DESIGN

Descriptive Research Design is considered to be apt for the study. The main aim of using this
method is that it provides description of the current state of affairs.

1.5.2 METHODS OF DATA COLLECTION:

Sources of information-
 Primary Data: Questionnaire containing 15 questions will be distributed to
Suppliers: - 10 respondents
Employees: - 10 respondents
Customer: - 10 respondents
 Secondary Data: The secondary data will be collected from articles, published
research papers and journals.

1.5.3 SAMPLING TECHNIQUE

Convenience sampling was used in which sample size the sample size of the study is 10 per
each Questionnaire for pre and post of the event

1.6 LIMITATIONS OF STUDY

All the studies to be made have their own parameter and it is difficult to make a study
on assumption despite all possible efforts to makes this analysis comprehensive,
scientific and accurate. Thus there is bound to be some limitations

Some of the limitation of the study are:

 Time constraints and shortage of other resources such as money,only 150
respondents were selected.
 A few respondents may not have answered entire questionnaire with consistency and the
effect of this would have been greater.
 The sample size was chosen keeping in view the type of products and service.
 Some respondents should have given biased information the effect of this would have
been greater during the analysis part of questionnaire

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 Accuracy of the report depends upon how honestly or sincerely the respondents
have answered.

WHAT IS MARKET?

MARKET: Market is derived from the Latin word “MARCATUS” means trade,
commodities or plane business. It means a meeting at a fixed time for buying and selling
livestock and provision.

MARKETING
Marketing is exchange of goods and services. It includes all those activities connected with
the process of identifying the needs of the customer and then organizing the business
accordingly to meet the needs of the customer.
“Marketing is a social and managerial process by which individuals and group obtain what
they need and want through creating, offering and exchanging products of value
with others”.

Philip Kotler
“Marketing is the total system of interacting business activities designed to plan, price,
promote, and distribute wants satisfying products and services, to present and potential
customers”.

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 DEFINITION OF PRODUCT

The product may be a good, a service, a good plus service, or just an idea. A product is all
things offered to a market. Those things include physical object, design, brand, package,
label, price, services, amenities and satisfaction not only from physical products and
services offered but also from ideas, personalities and organization. In short a product is a
sum total of physical, economic, social, psychological benefits.

EVOLUTION OF MARKETING CONCEPTS

 THE PRODUCTION CONCEPT

The production concept holds that consumers will favours those products that are widely
available and low in cost. Managers of production oriented organization concentrate on
achieving high production efficiency and wide distribution coverage.

 THE PRODUCT CONCEPT

The product concept holds that consumers will favours those products that offer the most
quality, performance or innovative feature. Managers in this product oriented organization
focus on making superior products and improving them.

 THE SELLING CONCEPT

The selling concept holds that consumers if left alone will or ordinarily not buy enough of
the organizations product. The organization must therefore undertake an aggressive selling
and promotion effort.

 THE MARKETING CONCEPT

The marketing concept holds that the key to achieving organizational goals consist of
determining the needs and wants of target markets and delivering the desired goods and
services more effectively and efficiently than competitors.

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EXCHANGE
The fact that people have needs and wants and can place value on products does not define
marketing. Marketing emerges when people decide to satisfy needs and wants through
exchange. Exchange is the act of obtaining a desired product from someone by offering
something in return.

Exchange to take place given conditions must be satisfied.

1. There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject offer
5. Each party believes, it is appropriate or desirable to deal with other party.

The concept of exchange leads to the concept of a market. A market consist of all potential
customers sharing a particular need as want who might be willing and able to engage in
exchange to satisfy that need or want.

NEEDS WANTS AND DEMANDS

A human need is a state of felt deprivation of some basic satisfaction, people require food,
clothing, shelter, safety few other things for survival. These are not created by their society
or by marketers. They exist in the very texture of human biology and the human condition.

Demands and wants for specific products are backed by an ability and willingness to buy
them.
Wants become demands when supported by purchasing power. A market is then composed
of people with money wanting goods and services.

PURCHASING POWER HAS TWO ASPECTS:

1. Ability to buy

2. Willingness to buy- it is influenced by environmental factors as well as marketing effort

of the industry.

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The marketing success depends, on the ability to forecast strength and character of demand
as it is the basis for allocation of resources in business.
There are three variable factors of market demand:

1. Demographic variable (population pattern) to ascertain size of demand.

2. Effective demand (purchasing power) to ascertain potential demand.

3. Life style pattern reflecting purchasing propensity and indicating customer behavior.

THE MARKETING MIX

(The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:

 Product
 Price
 Place (distribution)
 Promotion

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 The term "marketing mix" became popularized after Neil H. Borden published his 1964
article, The Concept of the Marketing Mix. Borden began using the term in his teaching in
the late 1940's after James Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions, packaging,
display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy
later grouped these ingredients into the four categories that today are known as the 4 P's of
marketing, depicted below:

 PRODUCT

The product is the physical product or service offered to the consumer. In the case of
physical products, it also refers to any services or conveniences that are part of
the offering.

Product decisions include aspects such as function, appearance, packaging, service,

warranty, etc.

 PRICE

Pricing decisions should take into account profit margins and the probable pricing response
of competitors. Pricing includes not only the list price, but also discounts, financing, and
other options such as leasing.

 PLACE

Place (or placement) decisions are those associated with channels of distribution that serve
as the means for getting the product to the target customers. The distribution system
performs transactional, logistical, and facilitating functions.

Distribution decisions include market coverage, channel member selection, logistics, and
levels of service.

 PROMOTION

Promotion decisions are those related to communicating and selling to potential consumers.
Since these costs can be large in proportion to the product price, a break-even analysis
should be performed when making promotion decisions. It is useful to know the value of a

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 customer in order to determine whether additional customers are worth the cost of acquiring
them.

Promotion decisions involve advertising, public relations, media types, etc.

EXTENDED MARKETING MIXES (3 P‟S)

More recently, three more P‟s have been added to the marketing mix namely People,
Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix.

 PEOPLE

All people involved with consumption of a service are important. For example workers,
management, consumers etc. It also defines the market segmentation, mainly demographic
segmentation. It addresses particular class of people for whom the product or service is
made available.

 PROCESS

Procedure, mechanism and flow of activities by which services are used. Also the
'Procedure' how the product will reach the end user.

 PHYSICAL EVIDENCE

The marketing strategy should include effectively communicating their satisfaction to

potential customers.

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 MEANING OF SERVICE QUALITY

Service quality (SQ) is a comparison of expectations (E) with performance (P) SQ=P-E. A
business with high service quality will meet customer needs whilst remaining economically
competitive. Improved service quality may increase economic competitiveness.

A business with high service quality will meet or exceed customer expectations whilst
remaining economically competitive. Evidence from empirical studies suggests that
improved service quality increases profitability and long term economic competitiveness.
Improvements to service quality may achieved by improving operational processes;
identifying problems quickly and systematically; establishing valid and reliable service
performance measures and measuring customer satisfaction and other performance
outcomes.

From the viewpoint of business administration, service quality is an achievement in

customer service. It reflects at each service encounter. Customers form service expectations
from past experiences, word of mouth and marketing communications. In general,
customers compare perceived service with expected service, and which if the former falls
short of the latter the customers are disappointed.

 MEASURING SERVICE QUALITY

Measuring service quality may involve both subjective and objective processes. In both
cases, it is often some aspect of customer satisfaction which is being assessed. However,
customer satisfaction is an indirect measure of service quality.

Why is it supremely important to satisfy to customer?

Basically because of company's sale each period comes from two groups, new customer and
existing customer. It always cost more to attract new customers than to retain current
customer. Therefore, customer retention is more critical than customer attraction.
The key of customer retention:
 Buys again
 Talks favorably to others about the company.
 Pays less attention to competing brands and advertising.
 Buys other products from the same company.

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APPROACHES TO THE IMPROVEMENT OF SERVICE QUALITY

In general, an improvement in service design and delivery helps achieve higher levels of
service quality. For example, in service design, changes can be brought about in the design
of service products and facilities. On the other hand, in service delivery, changes can be
brought about in the service delivery processes, the environment in which the service
delivery takes place and improvements in the interaction processes between customers and
service provider.

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1.7 LITERATURE REVIEW:
Green supply-chain management: Samir K. Srivastava
The literature on Green SCM is covered exhaustively from its conceptualization,
primarily takinga ‟reverse logistics angle‟. Using the rich body of available Literature,
including earlier reviews that had relatively limited perspectives, the literature on GrSCM
is classified on the basis of the problem context in supply chain‟s major influential areas. It
is also classified on the basis of methodology and approach adopted. Various mathematical
tools/techniques used in literature vis-à-vis the contexts of Gr SCM are mapped. A timeline
indicating relevant papers is also provided as a ready reference. Finally, the
findings and interpretations are summarized, and the main research issues and
opportunities are highlighted. (Srivastava, 2007)

Mamum Habib
American international University-Bangladesh (AIUB), Bangladesh
Research objectives may include adding value, reducing cost, or slashing response time
in various parties involved in the manufacturing supply chain. However, very few studies
were attempted in non-profit organization. An extremely scarce number of
research papers focused on scm in the academia (Habib, 2011, 2010c, 2010d,
2010f, 2010g).

The term, “supply chain management,” has risen to eminence over the last ten years.
About13.55% of the concurrent session titles contained the words “supply chain” at
the 1995. Annual conference of the council of logistics management. The number of session
containing the term rose to 7.4% at the 1997 conference just two year later.The term is
used to illustrate executive responsibilities in corporations (La Londe 1997). SCM
has become such a “hot topic” that it is difficult tonpick upa periodical on manufacturing,
distribution, marketing, customer management, or transportation without seeing any
article about SCM or SCM related topics (ross, 1998).

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Some authors defined SCM in operational terms involving the flow of materials and
products, some viewed it as e management philosophy, and some viewed it in terms of a
management process (Tyndall et al, 1998). Authors have been conceptualized SCM
differently within the same articles as a management philosophy on the other hand and as a
form of integrated system between vertical integration and separating identities on the other
hand (cooper oand Ellram,7 1993)

According to Christopher (1994), a supply chain is “a network of organization that are

involved, through upstream and downstream linkages in the different processes and
activities that produce value in the form of product and services in the hands of the
ultimate customer”. (Habib, 204).

John Storey and Caroline Emberson

The Open University business school, Milton Keynes, UK, and
Janet Godsell and Alan Harrison
Cranfield School of Management, Crenfeild.UK
The purpose is to critically assess current development in the theory and practice of supply
management and through such an assessment to identify barriers, possibilities and
key trends. Debates here relate to scope and focus. Some academics openly declare
that they0use the terms supply chain management and purchasing “synonymously”
(Stuart, 1997).

The lean supply approach focused on the “purchasing activities of vehicle assemblers and
the supply activities of the component manufacturers” (Lamming, 1996).
Accordingly Lamming Argues, for the merit of the broader concept of
“Supply Management”. Some purchasing specialists see SCM as about developing relation
with suppliers (Giunpero and Brand, 1996). (John Storey and Caroline Emberson, 2006).

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Complimentary theories to supply chain management
Arni Halldorson
University of Southampton, UK, and University of Reykjavik
Lamming (1996) introduces the theory of SCM as an extension of logistics, through
referring to the extended need of relationship issues to be considered in the theory of
SCM. However, the notions still remain on a more applied than theory- building level.
Larson and /halldorson (2004) discuss four unique perspectives on the relationship
between logistics andSCM. (Halldorson, 2007).

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 CHAPTER 2
INDUSTRY PROFILE & COMPANY PROFILE

2.1 INDUSTRY PROFILE

PISPL is in the business of providing high quality logistics services that give our customers a
competitive advantage in the Indian market.

2.2 COMPANY PROFIL

COMPANY PROFILE

Type : Private

Industry : Logistic

Founded : 1981

Founder : Vikram Parekh

Headquarters : Goregoan, Mumbai, India

Area served : India

: 3PL solutions
Services

Websit : www.pispl.com

ORGANIZATIONAL CHART -
2.2.1 Business Model:

PISPL has a much customized business model. They are banking upon their logistics to deliver
goods timely to their customer across the state. Their motive is to deliver the goods on time
in order to satisfy their customers. In order to the same, they have a fleet of 50 + vans which
are being commissioned to deliver the goods to the customer as per their convenience. They
work on Hub and Smoke model where all the goods are bought and kept in a warehouse.
Then from warehouse the goods are supplied to the hubs which cater to the state.

The order are placed on the system or through a telephone number mentioned on
their website.

The order for the next day is take between 07.00 hrs. to 7.00 hrs. the previous day. All the
orders are compiled during the day.

Supply Chain Management

Today If we take the view that Supply Chain Management is what Supply Chain Management
people do, then in 1997 Supply Chain Management has a firm hand on all aspects of physical
distribution and materials management. Seventy-five percent or more of respondents included
the following activities as part of their company's Supply Chain Management department
functions:

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  Inventory management
 Transportation service procurement
 Materials handling
 Inbound transportation
 Transportation operations management
 Warehousing management

Moreover, the Supply Chain Management department is expected to increase its range of
responsibilities, most often in line with the thinking that sees the order fulfilment process as
one co-ordinated set of activities. Thus the functions most often cited as planning to formally
include in the Supply Chain Management department are:

 Customer service performance monitoring

 Order processing/customer service
 Supply Chain Management budget forecasting

On the other hand, there are certain functions which some of us might feel logically belong to
Supply Chain Management which companies feel are the proper domain of other departments.
Most difficult to bring under the umbrella of Supply Chain Management are:

 Third party invoice payment/audit

 Sales forecasting
 Master production planning

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2.3 SWOT ANALYSIS OF PISPL.

STRENGHTS:
 Huge investment capacity,
 Convenience for customers,
 High quality assurance,
 Low inventory cost,
 Low delivery charges,
 Closer working relationship with customers,
 Good relationship with customer.

WEAKNESSES:
 No economies of scale,
 Lack of staff,
 Sometimes the transportation cost increases the product cost.

OPPORTUNITIES
 Expanding oversea,
 Product extension,
 Strategic alliances,
 Venture capitalists,
 Internet users is increasing in a rapid way
.
THREATS
 Competitors
 Government policies are not well defined in country.
 Global companies are entering into Indian market.

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2.4 COMPETITORS

 V-Trans.
 MAHINDRA LOGISTICS
 FLITGUARD
 AGARWAL LOGISTICS


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 CHAPTER 3
THEORITICAL FRAMEWORK

3.1 INTRODUCTION TO SUPPLY CHAIN

A supply chain is a network of supplier, manufacturer, assembly, distribution and logistics
facilities that perform the function of procurement of materials, transformation of these
materials into intermediate and finished products, and the distribution of these products to
customers. Supply chain arise in both manufacturing and service organizations.

According to Jones and Riley, “Supply chain management deals with the total flow of
materials from suppliers through end user”.

According to Christoper, “SCM is the management of upstream and downstream

relationships with suppliers and customers to deliver superior customer value at less cost to
the supply chain as a whole”.

There are 5 essential areas for the success of any retailer in the supply chain and out
of these 3 are logistical functions. These are:
 Warehouse (Facility)
 Inventory management
 Transportation

OBJECTIVE OF SCM

1. Service orientation:- The very basis of supply chain has been to provide superior
customer service. Service is all about the value that the customer gets, which in
turn depends upon his own perception about what constitutes „values‟.
2. System orientation:- System orientation is at the core of the existence of any
supply chain. Synergy due to cooperation and coordination is the main gain of a supply
chain

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3. Competitiveness and efficiency:- Competitiveness0is essential0for it to healthily sustain
itself0in order to be able to provide increasing value to its customer. Efficiency is an
important element of competitiveness.

4. Minimizing work-in-progress:-Supply chain minimizes total work in

process in supply chain.

5. Improving visibility of demand:-Efficient supply chain improves the visibility of

demand by each one of the partner.
6. Improving quality:- Efficient supply chain helps in improving the quality of
operation of the organizations.
7. Reduces transportation cost:-Efficient supply chain reduces the transportation
cost thus helps in increasing efficiency and reduction in carrying cost for the company.
8. Reduces warehousing cost:- Efficient supply chain helps in reduction of warehousing
cost for the company as there will be less held up of inventory

MANAGING THE SUPPLY CHAIN

Supply chain should be managed effectively for the accurate production at the right time.
Some of the options for managing supply chain are given below:
Postponement, Channel assembly, Invoice-less purchasing, Electronic ordering and funds
transfer, Stockless purchasing, Standardization and Internet purchasing

VENDOR SELECTION

Selection of the supplier of the material is important part in the production point of
view. Vendor evaluation can be done by identifying & selecting potential vendors.

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SUPPLIER SELECTION CRITERIA

Company
Financial stability
Management
Location
Product
Quality
Price
Service
Delivery on time
Condition on arrival
Technical support
Training

NATURE OF SCM

Supply chain is defined as entire flow of information, materials, and services from raw
material suppliers through factories and warehouses to the final end-customer. These are
maintained on hand at or near a business's location so that the firm may meet demand of the
various departments, as well as customers and fulfil its reason for existence. If the firm is a
retail establishment, a customer may look elsewhere to have his or her needs satisfied if the
firm does not have the required item in stock when the customer arrives. If the firm is a
manufacturer, it must maintain some its chain of raw materials and work-in-progress in order
to keep the production running in good conditions.

If the firm exists in a volatile environment where demand is dynamic (i.e., rises and falls
quickly), an on-hand inventory could be maintained as a buffer against unexpected changes in
demand. This buffer inventory also can serve to protect the firm if a supplier fails to deliver at
the required time, or if the supplier's quality is found to be substandard upon inspection, either
of which would otherwise leave the firm without the necessary raw materials.

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Raw material:

Raw materials are inventory items that are used in the manufacturer's conversion process to
produce components, subassemblies, or finished products. These inventory items may be
commodities or extracted materials that the firm or its subsidiary has produced or extracted.
They also may be objects or elements that the firm has purchased from outside the
organization. Even if the item is partially assembled or is considered a finished good to the
supplier, the purchaser may classify it as a raw material if his or her firm had no input into its
production. Typically, raw materials are commodities such as ore, grain, minerals, petroleum,
chemicals, paper, wood, paint, steel, and food items. However, items such as nuts and bolts,
ball bearings, key stock, casters, seats, wheels, and even engines may be regarded as raw
materials if they are purchased from outside the firm.

Work in Progress:

Work-in-progress (WIP) is made up of all the materials, parts (components), assemblies, and
subassemblies that are being processed or are waiting to be processed within the system. This
generally includes all material from raw material that has been released for initial processing
up to material that has been completely processed and is awaiting final inspection and
acceptance before inclusion in finished goods. Any item that has a parent but is not a raw
material is considered to be work-in-progress.

Finished goods:

A finished good is a completed part that is ready for a customer order. Therefore, finished
goods inventory is the stock of completed products. These goods have been inspected and have
passed final inspection requirements so that they can be transferred out of work-in-progress
and into finished goods inventory. From this point, finished goods can be sold directly to the
final user, sold to retailers, sold to wholesalers, sent to distribution centres, or held in
anticipation of a customer order. The levels of the above 3 kinds of inventories differ
depending upon the nature of business.

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VARIOUS COSTS INCLUDED IN SCM
ORDERING COSTS
For a large organization like PISPL, it is necessary to have a separate purchase office to
purchase thousands of items. The demands received are technically scrutinized and for
purchasing them, inquiries are issued, tenders are received and evaluated, orders are
progressed, materials are received and inspected and lastly, the payments are arranged. All
these mean additional costs to the organization. All these costs together constitute what is
called cost of ordering or cost of acquisition.

CARRYING COSTS:
The very fact that the items are required to be kept in stock means additional expenditure has
to be arranged in the organization. The different elements of costs involved in holding these
inventories are as follows:

1. Capital costs:
When materials are kept in stock money representing the value of materials is blocked. In a
multi-national economy, capital is extremely scarce and as such, the real value of capital is
much higher than the nominal rate of interest which the organization like Railways may be
paying. The money which is blocked up is not available to the organization to do more
business or to use it for alternative productive investment.
2. Obsolescence and depreciation:
The costs because of obsolescence and depreciation are very important even though
they are very difficult to assess. This factor is relatively higher for spare parts inventory as
against raw material inventory.

24 | P a g e
 Larger the stock we keep more the risk of obsolescence and as such, the costs are expressed as
the percentage costs to the average inventory holding and can be between 2 to 5%.

3. Cost of storage, handling and stock verification:

There are additional costs because of the clerical work involved in handling of
materials in the ward, in stock verification, in preservation of materials as well as the costs
because of various equipment‟s and facilities created for the purpose of materials.
A part of this cost is of a fixed nature. The major portion of the cost including the cost
of staff, however, can be treated as variable costs at least in the long run.

4. Insurance Costs:
Materials in stocks are either insured against theft, fire etc., or we may have to employ
watch & ward organization and also fire fighting organizations. Cost of this may also be 1 to
2%. The average inventory carrying costs can, therefore, be as follows:
A. Interest/costs of capital/opportunity cost 15 to 25%.
B. Obsolescence and depreciation cost 2 to 5%.
C. Storage, handling 3 to 5%.
D. Insurance costs 1 to 2%.
E. Total 21 to 37%.

SHORTAGE COSTS:

Whenever an item is out of stock and as such cannot be supplied, it means that some work or
the other is delayed and this, in turn, leads to financial loss associated with such stoppage or
delay of work.

For example, if a locomotive remains idle for want of spare parts, the Earning capacity of the
locomotive is lost for the duration of this period. On the other hand, the spare parts required
will have to be purchased on Emergency basis or have to be specially manufactured resulting
in Additional costs.

Stock out costs can vary from item to item and from situation to situation depending upon the
emergency action possible. No attempt therefore, is normally made to evaluate a stock out cost

25 | P a g e
 of an item. Nevertheless, it is Important to understand the concept of stock out costs, even
though the Actual quantification is not possible.

SYSTEM COSTS:

These are the costs which are associated with the nature of the control systems selected. If a
very sophisticated model of the relationship between stock out costs, inventory holding cost
and cost of ordering is used and operated with the help of a computer, it may give the
theoretical minimum of the other costs but the cost of such control system may be sufficiently
high to offset the advantages achieved.

The difference between the actual price & standard price is carried to a variance account.
Material issued is charged as per the standard price.

SUPPLY CHAIN AND DEMAND CHAIN

• Demand chain is defined as the system by which organizations manage sales and distribution
of products and services to end users.

• Conceptually incorrect to look at demand chain separately

• A supply chain is a system of organizations, people, technology, activities, information and

resources involved in moving a product or service from supplier to customer.

• Supply chain activities transform natural resources, raw materials and components into a
finished product that is delivered to the end customer.

STEPS INVOLVED IN SCM

1. Designing the supply chain:

 Determine the supply chain network

 Identify the levels of service required.

2. Optimizing the supply chain:

 Determine pathways from suppliers to the end customer

 Customer markets to Distribution centers

26 | P a g e
 Distribution centers to production plants

 Raw material sources to production plants

 Identify constraints at vendors, plants and distribution centers

Plan the procurement, production and distribution of product groups rather than individual
products in large time periods- quarters or years

PORCEDURES/ KEY POINTS

1. Receiving Inspection

When food arrives at receiving following items need to be checked & recorded:
a) Checking the cleanliness of the transport vehicle
b) Confirm the supplier
c) Check the invoice
d) Packaging inspection
e) Food must be from app-roved supplies
f) Quantity
g) The person who is checking needs to be signed
2. Food reject
It is critical to reject the following during the receiving process:
a) Out-dated damaged, leaking or contaminated products
b) Chilled food warmer than 5 degree c (unless it is daily, fresh slaughtered meat)
c) Canned food that is leaking, dented, pitted with rust or has swollen or puffy ends.
d) Fruits and vegetables that is wilted or rotten
e) Fish with a strong odour or cloudy eyes
f) Products that do not have a label or which has an imperfect label Rejected food items must
be separated and recorded.

3. Priority of product storage

a) Frozen and critical refrigerated food must be transported to storage with 20 minutes after
delivery i.e. meat, poultry, fish, diary, pastry, prepared refrigerated food.
b) Kitchen to provide a list of perishable food to receiving.

27 | P a g e
c) Follow FIFO (First in first out) system by stocking new products in back of products
received earlier.

4. Hygienic Transfer from Receiving

a) Transfer products received at the loading dock to previously cleaned and sanitized
container to minimize risk of cross contamination.
b) Dirty outer cartons are not allowed in chillers, freezers or kitchens.
c) Delicate fruits may be stored in original containers to product.
d) Ensure that trolley is sanitized when contaminated.
 Red crates is for meat, chicken
 Blue crates is for sea foods like fish, crab, shellfish, etc.
 Green crates is for vegetables.
 Light green crates are for diary

IMPLEMENTATION PROCEDURE

Steps-actions/Phases
Subsequent actions to implement the supply-chain agenda, which Kearney says should be
carried out by individual project teams, typically fall into these broad categories:

• Designing the long-term supply-chain structure to position the company in the right roles
in the right supply chains with the right customers and suppliers.
• Re-engineering supply-chain processes to streamline product, information, and funds
flow internally and externally.
• Reinforcing the supply chain's functional foundation by improving quality and
productivity within operational areas such as warehousing, transportation, and fleet
management.
A Flexible Approach
specialises in the design, development and implementation of solutions to Supply Chain
Management problems. Consultancy approach is tailored to suit the particular requirements
of a client's project. This ensures the provision of the most appropriate form of assistance,
from a full traditional consultancy assignment, to a placement working within a client's
team. Strategic Analysis ,Specification, Implementation.

28 | P a g e
 Strategic Analysis
It's the study of the current and future needs of business and development of such solutions
to meet these requirements. This normally involves the use of computer models to gain a
full understanding of the key issues and to examine the practical alternatives. A
recommendation follows with the most appropriate and cost effective solution. This
approach: § gives confidence in the recommended solution. § identifies a clear way
forward. § determines the associated cost and timescales. § enables the next stage of the
project to be planned.

Specification
In this stage, any recommendations have to include operational detail, enabling systems,
equipment or buildings to be procured to meet the exact requirements of the solution. This
provides: correct logical emphasis on each aspect of the solution. A clear specification of
proposals, minimising the risk of unforeseen cost. finalised project cost budgets.
§competitive equipment procurement. agreed implementation timescales.

Implementation
Refers to responsibility for the tendering of equipment and supplier selection, contract
negotiation and placement. Contract Management through to completion to ensure that the
project is progressed in accordance with the requirements of time, cost and quality. Work
with the client on preparing any organisational changes and training to ensure a smooth start
to the new operation.

FUNCTION OF SCM
Supply chain activities can be grouped into strategic, tactical, and operational levels of
activities:

1. STRATEGIC FUNCTIONS
i. Strategic network optimization, includes the number, location, and size of
warehouses, distribution centers and facilities.
ii. Strategic partnership with suppliers, distributors, and customers, creating
communication channel for critical information and operational improvements such
as cross docking, direct shipping and third party logistics
29 | P a g e
 iii. Product design co-ordination, so that new and existing products can be
optimally integrated into the supply chain, load management.
iv. Information Technology infrastructure to support supply chain operations.
v. Where to make and what to make or buy decisions.

2. TACTICAL FUNCTIONS
i. Sourcing contracts and other purchasing decisions.
ii. Production decisions, including contracting, scheduling and planning
process definition.
iii. Inventory decisions, including, location, and quality of inventory.
iv. Transportation strategy, including frequency, routes, and contracting.
v. Benchmarking of all operations against competitors and implementation of best
practices throughout the enterprise.
vi. Focus on customer demand.

3. OPERATINAL FUNCTIONS
i. Daily production and distribution planning, includes all nodes in the supply chain
ii. Production scheduling for each manufacturing facility in the supply chain.
iii. Demand planning and forecasting, coordinating the demand forecast of all
customers and sharing the forecast with all suppliers.
iv. Sourcing planning, including current inventory and forecast demand, in
collaboration with all suppliers.
v. Inbound operations, including transportation from suppliers and receiving
inventory.

WAREHOUSE
Warehouse is the location to or from which the inventory is transported. Warehouse are the
key driver of supply chain performance in terms of responsiveness and efficiency.
Before deciding the location of ware house we must consider the following points:
1) Location of our hub
2) Rent of the location
3) Format of our retailing
30 | P a g e
Now a day’s warehouse is treated as switching facilities rather than storage place and
companies try to move stock from the warehouse as soon as possible to reduce the inventory
handling cost, for higher inventory turnover and for shorter cycle time it is a major
cost center, many customer problem are the direct result of improper
warehousing management.

Major decision of0warehouse is as follows: -

 Facilities in the warehouse.
 Warehouse layout.
 Design of building.
 Ownership of the warehouse.
 Connectivity.
 Warehouse’s performance is judged by customer’s satisfaction and by lower
cost of operation.

Warehouse Function
 Material storage function
 Material handling function

Material storage is required to accommodate the following functions:

Holding
Consolidation
Break Bulk
Packing
Mixing
Material handling function
Loading & unloading, material movement, order filing.

31 | P a g e
INWARD PROCESS IN WAREHOUSE
In warehouse when stock comes from the vendor site or from central warehouse then the
following procedure is used for inward of stock in warehouse:
1. Document check:
This is first and one of the most important steps of the inwarding procedure because if
any warehouse inwards the stock in warehouse without check then it creates a big
trouble for the organization. It may be possible that the stock which come in the warehouseis
not belong to that particular warehouse or taxation is not done by the vendor for the stock so
proper checking of documents is must. Security guard and the person who is managing the
record for that stock are only responsible for that stock.

If stock comes from main warehouse, another warehouse or from any store then
following documents are checked by the security staff:

 Stock transfer note (STN) staff checks whether this STN belong to this warehouse or to
any other.
 Transporter way bill which is different in different states and somewhere it is also not
require this bill proves that this stock is legal and sales taxes are paid for this stock.
 Gate pass which confirms that stock comes out from the store or
Warehouse with the permission of responsible person.

If stock comes from vendor’s site then security checks the following documents:

 Purchase Order (PO) is that document which shows the validity of that goods or not and it
also indicates that goods are valid for particular date n then it can be received.
 Invoice (bill) which specifies that how much quantity is ordered and at what price vendor
made this contract.
 Delivery challan (DC) which is the proof of payment of sales tax.

32 | P a g e
PURCHASE ORDER (PO)
Purchase order which is only raise for the vendors/suppliers and this PO is only raise by the
front end category team from the customer office or from customer head office and it is
also raise by customer purchase team, When DM‟s of the operation raises PO then most of
the time it first goes to category team and after that these is passed to vendors. In case
when category team raise the PO then it considered the requirement of the operating which
is sent by the DM‟s to the category team and then category team make PO for vendors and in
that case they take decision weather particular stock will goes to warehouse or directly
operating department.

Unloading and counting of cartons:

After checking the documents stock is unloaded from the vehicle under inspection of
responsible person and security staff. Receiver counts the cartoons which he is receiving is
opened or in bad condition then that particular cartoon will be marked which they can show in
the bad items or not in proper condition register.

1) Entry in security inward register:

After proper unloading the cartoons security staff will enters the details of in warding in
security inward register.

2) Stock count and check:

After the entry of stock in the register this is the time to count the stock manually with
the help OB MODLE software in they register all the damage products and employee also
check for any damage in the stock that the warehouse get and if they find any
difference between the quantity mentioned in invoice and the actual quantity they get or
in case any damage product, any part missing or any bar code problem Then they write that
information on the invoice of the vendor and pass it to the concerned person of the
warehouse.

33 | P a g e
3) Entry into OB MODLE (Software used by PISPL):
Now after counting the stock if counting is done manually then the stock is entered
in the OB MODLE by scanning each and every product for the better visibility of
stock across the supply chain. If there is any problem in bar code like it is not read by
reader because of any scratch on bar code or bar code is not on the merchandise then the
person try to find out its article code by matching that product with other product
with other product of same characteristics like a F&V of same color, same size and same
brand has common article code and when they find any such merchandise then. They
enter its ID code in the receiving department records manually and if they don’t get
match of such merchandise then they directly inform the problem taken place to the
vendor.

34 | P a g e
 CHAPTER 4
ANALYSIS & INTERPRETATION
CUSTOMER
TABLE NO.01
SHOWING NO. OF RESPONDENT ACCORDING TO THEIR AGE GROUPS

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 21-30
2 31-40
3 41-50
4 51-60
5 ABOVE 60
9 18
27 54
7 14
3 6
4 8

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 51-60 ABOVE 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

35 | P a g e
 TABLE NO.02
SOURCES OF INFORMATION REGARDING THE PISPL WITH RESPONDENTS.
SL NO SOURCES NO.OF RESPONDENT PERCENTAGE
1 Internet 30 60
2 Newspaper 9 17.33
3 word of mouth 7 14.66
4 Others 4 8

CHART NO.02

70
60
60

50

40
NO.OF RESPONDENT
30
30 PERCENTAGE

20 17.33
14.66
9 8
10 7
4

0
Internet Newspaper word of mouth others

ANALYSIS:-
The above table and chart graph indicates that 60% 0n internet, 17.33 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.

36 | P a g e
 TABLE NO.03
SOURCES OF INFORMATION REGARDING THE PISPL PRODUCT/SERVICES
WITH RESPONDENTS.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Poor 5 9.3
2 Fair 16 32
3 Good 21 42
4 Very good 6 4
5 Excellent 2 4.6

CHART NO.03

45
42
40
35
32
30
25 21 NO.OF RESPONDENT
20 16 PERCENTAGE
15
9.3
10 6
5 4 4.6
5 2
0
Poor Fair Good Very good Excellent

ANALYSIS:-
The above table and chart graph indicates that 9.3% 0n Poor, 32% on 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

37 | P a g e
 TABLE NO.04
SOURCES OF INFORMATION REGARDING THE PRODUCT CLEANLINESS AND
PHYSICAL CONDITION WITH RESPONDENTS.
SL NO SOURCES NO.OF RESPONDENT PERCENTAGE
1 Poor 8 16.6
2 Fair 17 33.3
3 Good 13 26
4 Very good 10 20
5 Excellent 2 4

CHART NO.04

35
33.3

30
26
25
20
20
16.6 17
NO.OF RESPONDENT
15 13 PERCENTAGE
10
10 8

5 4
2

0
Poor Fair Good Very good Excellent

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

38 | P a g e
 TABLE NO.05
SOURCES OF INFORMATION REGARDING THE RESPONSE TO PRODUCT
ORDERED WITH RESPONDENTS.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Poor 8 16
2 Fair 11 22
3 Good 28 56
4 Very good 2 4
5 Excellent 1 2

CHART NO.05

60 56
50

40
28 NO.OF RESPONDENT
30
22
16 PERCENTAGE
20
11
8
10 4
2 1 2
0
Poor Fair Good Very good Excellent

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

39 | P a g e
 TABLE NO.06
SOURCES OF INFORMATION REGARDING THE PRODUCT/SERVICE
DELIVERED ON TIMING WITH RESPONDENTS.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 YES 30 60
2 NO 20 40

CHART NO.06

70
60
60

50
40
40
NO.OF RESPONDENT
30
30 PERCENTAGE
20
20

10

0
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.

40 | P a g e
 TABLE NO.07
Sources of information regarding If „yes „Delivery activity with respondents.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Poor 5 10
2 Fair 18 36
3 Good 22 44
4 Very good 4 8
5 Excellent 1 2

CHART NO.07

50
44
45
40 36
35
30
25 22 NO.OF RESPONDENT
20 18
PERCENTAGE
15 10
10 8
5 4
5 1 2
0
Poor Fair Good Very good Excellent

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.

41 | P a g e
 TABLE NO.08
Showing that the corrective action taken through PISPL if it’s not meeting customers
need.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 1Day 14 28
2 More than 1 day 17 34

3 More than 3 days 12 24

4 More than 9 days 7 14

CHART NO.08

40
34
35
30 28
24
25
20 17
14 14 NO.OF RESPONDENT
15 12
7 PERCENTAGE
10
5
0
1Day More than 1 More than 3 More than 9
day days days

ANALYSIS:-
The table and column chart showing that the number of days taken to correct the products and
services by PISPL 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 PISPL 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.

42 | P a g e
 TABLE NO.09
SOURCES OF INFORMATION REGARDING FULFILLING CUSTOMER ORDERED
PRODUCT/SERVICE

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Yes 19 37.33333333
2 NO 31 62.66666667

CHART NO.09

70

60

50

40
NO.OF RESPONDENT
30 PERCENTAGE

20

10

0
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

43 | P a g e
 TABLE NO.10
SOURCES OF INFORMATION REGARDING FEEL ABOUT THE PRICE OF PISPL
SERIVCES.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Very high 3 6
2 High 13 26
3 Average 33 66
4 Low 1 2

CHART NO.10

70 66

60

50

40
33 NO.OF RESPONDENT
30 26 PERCENTAGE

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

44 | P a g e
 TABLE NO.11
SOURCES OF INFORMATION REGARDING FEEL ABOUT DISCOUNT OFFERED

PISPL.
SL NO SOURCES NO.OF RESPONDENT PERCENTAGE
1 Very high 1 2
2 High 2 4
3 Average 18 36
4 Low 29 58

CHART NO.11

70

60 58

50

40 36
NO.OF RESPONDENT
29
30 PERCENTAGE

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

45 | P a g e
 TABLE NO.12
SOURCES OF INFORMATION REGARDING OVERALL SATISFACTION

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Poor 13 26
2 Fair 14 28
3 Good 16 32
4 Very good 5 10
5 Excellent 2 4

CHART NO.12

35
32

30 28
26
25

20
16 NO.OF RESPONDENT
15 14
13 PERCENTAGE
10
10
5
5 4
2

0
Poor Fair Good Very good Excellent

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.

46 | P a g e
 EMPLOYEE
TABLE NO.13
SOURCES OF INFORMATION REGARDING VALUES ADAPTATION BY
PISPL DURING THEIR PROCESS.

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Integrity 3 6
2 Commitment 19 38
3 Speed 21 42
4 Passion 5 10
5 Seamlessness 2 4
CHART NO.13

45 42
40 38

35
30
25
21 NO.OF RESPONDENT
19
20
PERCENTAGE
15
10
10 6 5 4
5 3 2
0
Integrity Commitment Speed Passion Seamlessness

ANALYSIS:-
The above table and chart graph indicates about Values adaptation by PISPL 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.

47 | P a g e
 TABLE NO.14
THE FACTORS WHICH AFFECT THE OPERATIONS IN WAREHOUSE

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Non-cooperation 13 26
2 Quality factor 5 10

3 Motivational factor 19 38

4 Team work factor 13 26

CHART NO 14

40
35
30
25
20
15
NO.OF RESPONDENT
10
5 PERCENTAGE
0

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.

48 | P a g e
 TABLE NO.15
SOURCES OF INFORMATION REGARDING THE SUPPLY CHAIN
MANAGEMENT DEPARTMENT IS HAVING SUFFICIENT TRANSPORTATION

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Yes 35 70
2 Not Sufficient 13 26

3 Not at all 2 4

CHART 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.

49 | P a g e
 TABLE NO.16
ATTENTION AND PROGRESS TO BOOST THE PRODUCTION

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Operational activities 31 62

2 Procurement activities 18 36

3 Current programming strategies 1 2

CHART NO.16

70
62
60

50

40 36
31
30 NO.OF RESPONDENT
18 PERCENTAGE
20

10
1 2
0
Operational Procurement Current
activities activities programming
strategies

ANALYSIS:-
The above table and chart graph indicates about the Attention and progress to boost the
production 62% of Operational activities 36% of, Procurement activities, 2% of Current
programming strategies.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Operational activities
(31) i.e. 62% of the total population.

50 | P a g e
 TABLE NO.17
WHERE THE SUPPLY CHAIN DEPARTMENT IS FACING PROBLEM IN TAKING
CARE OF THE RAW MATERIALS

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 During storage 10 20
2 Packaging 21 42
3 While Delivering 6 12
4 Evaluation of defective raw material 13 26

CHART NO.17

45 42
40
35

30
26
25
20 21
20 NO.OF RESPONDENT
15 12 13 PERCENTAGE
10
10
6
5
0
During storage Packaging While Delivering Evaluation of
defective raw
material

ANALYSIS:-
The above table and chart graph indicates about the Where the supply chain department is
facing problem in taking care of the raw materials 20% of During storage, 42% of Packaging,
12% of While Delivering, 26% Of Evaluation of defective raw material.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Packaging (21) i.e.
42% of the total population.

51 | P a g e
 TABLE NO.18
TECHNICAL ISSUES IN OPERATING OB MODEL

SL
SOURCES NO.OF RESPONDENT PERCENTAGE
NO

1 Yes 46 92

2 No 4 8

CHART NO.18

100
92
90

80

70

60

50 46 NO.OF RESPONDENT
PERCENTAGE
40

30

20
8
10 4
0
Yes No

ANALYSIS:-
The above table and chart graph indicates about the Technical issues in operating BB model
92% of Yes, 8% of No.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Yes (46) i.e. 92% of
the total population.

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 TABLE NO.19
THE WORKING STRATEGIES OF OPERATION DEPARTMENT ON THE BASIS
OF THE CURRENT PROGRAM

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Poor 8 16
2 Fair 20 40
3 Good 15 30
4 Very good 5 10
5 Excellent 2 4

CHART NO.19

45
40
40
35
30
30
25
20 NO.OF RESPONDENT
20 16 15 PERCENTAGE
15
10
10 8
5 4
5 2
0
Poor Fair Good Very good Excellent

ANALYSIS:-
The above table and chart graph indicates about the working strategies of operation department
on the basis of the current program 16% of Poor, 40% of Fair, 30% of Good, 10% of Very
Good, 4% of Excellent.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Yes (20) i.e. 40% of
the total population.

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 SUPPLIERS
TABLE NO.20
SOURCES OF INFORMATION REGARDING FROM HOW LONG VENDORS
SUPPLYING GOODS TO PISPL

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 0-1 yr. 15 30
2 1-3 yr. 23 46
3 3-5 yr. 12 24

CHART NO.20

50
46
45

40

35
30
30
23 24 NO.OF RESPONDENT
25
PERCENTAGE
20
15
15 12
10

0
0-1 yr. 1-3 yr. 3-5 yr.

ANALYSIS:-
The above table and chart graph indicates about how long vendors supplying goods to
PISPL 30% of 0-1 yrs. 46% of 1-3 yrs. 24% of 3-5 yrs.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in1-3 yrs.(23)i.e46%
the total population.

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 TABLE NO.21
DO YOU FACE ANY ISSUES IN THE PAYMENTS MADE BY PISPL?

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Yes 32 64

2 No 18 36

CHART NO.21

70
64

60

50

40 36
32 NO.OF RESPONDENT
30 PERCENTAGE

20 18

10

0
Yes No

ANALYSIS:-
The above table and chart graph indicates about issues in the payments made by PISPL 64%
of Yes, 36% of No.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Yes(32) 64% the
total population.

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 TABLE NO.22
IS THERE ANY QUALITY CHECK FOR SUPPLY GOODS TO PISPL

NO.OF
SL NO SOURCES PERCENTAGE
RESPONDENT
1 Yes 44 88
2 No 6 12

CHART NO.22

100
88
90

80

70

60

50 44 NO.OF RESPONDENT

40 PERCENTAGE

30

20
12
10 6

0
Yes No

ANALYSIS:-
The above table and chart graph indicates about quality check for supply goods 88% of Yes,
12% of No.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Yes(44) 88% the
total population.

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 TABLE NO.23
IF „YES‟ HOW WOULD YOU RATE THE QUALITY POLICY

SL NO SOURCES NO.OF RESPONDENT PERCENTAGE

1 Average 15 30
2 Good 21 42
3 Very Good 5 10
4 Excellent 6 12
5 Outstanding 3 6

CHART NO.23

45 42
40

35
30
30

25
21 NO.OF RESPONDENT
20 PERCENTAGE
15
15 12
10
10
5 6 6
5 3

0
Average Good Very Good Excellent Outstanding

ANALYSIS:-
The above table and chart graph indicates about the quality policy 30% of Average, 42% of
Good, 10% of Very Good, 12% of Excellent, 6% of outstanding.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in(21) 42% the total
population.

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 TABLE NO.24
SOURCES OF INFORMATION REGARDING COMFORTABLY OF RECEIVING
SCHEDULE FOLLOWED BY PISPL

NO.OF
SL NO SOURCES PERCENTAGE
RESPONDENT
1 Yes 23 46

2 No 27 54

CHART NO. 24

60
54

50 46

40

30 27 NO.OF RESPONDENT
23 PERCENTAGE
20

10

0
Yes No

ANALYSIS:-
The above table and chart graph indicates about comfortably of receiving schedule 46% of
Yes, 54% of No.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in No(27) 54% the total
population.

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 TABLE NO.25
SOURCES OF INFORMATION REGARDING ABOUT THE PROCUREMENT
PRICE OF PISPL.
SL NO SOURCES NO.OF RESPONDENT PERCENTAGE
1 Very high 1 2
2 High 3 6
3 Average 28 56
4 Low 18 36

CHART NO. 25

60 56

50

40 36

30 28 NO.OF RESPONDENT
PERCENTAGE
20 18

10 6
2 3
1
0
Very high High Average Low

ANALYSIS:-
The above table and chart graph indicates about the procurement price of PISPL 2% of
Very high, 6% of High, 56% of Average, 36% of Low.

INTERPRETATION:-
From the above graph, it can be inferred that most respondents are lies in Average(28) 56%
the total population.

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 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS
The survey and analysis of questionnaire has revealed the following findings and
important feedback for “PISPL”.
 To estimate the satisfaction levels of the customer.

1. The survey shows that most of the respondents fall in age of 31-40 i.e. 27 (54%).
2. 60% of customers selected PISPL through Internet and in second they prefer through
Newspaper 17.33% of the total sample population of respondents.
3. The survey shows that product/services is Good i.e. 42% and in second Fair 32% from
all over study.
4. The study shows Product cleanliness and physical condition of 35.33% fair and in
second 26% good from all over study.
5. The study shows regarding the response to product ordered 42% as Good and in second,
fair of 35.33%.
6. The study shows regarding the product/service delivered on timing 60% as Yes and
second 40% as No.
7. The study shows regarding Delivery activity as Good of 44% and in second Fair of 36%.
8. From the data it clearly shows that the PISPL is able to solve problems faced by
customer as early as possible but also in same way there are more number of customers
who say there is a delay of more than 1 days in correction problem of customer.
9. The study shows information regarding fulfilling customer ordered product/service
62.7% says no.
10. The study shows customer feel about the price of PISP services 66% says Average.
11. The study shows customer feel about discount offered by PISPL services 58% Low.

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 To find out the various factors affecting the SCM in PISPL

12. The study shows Values adaptation by PISPL during their process 42% of speed.
13. The study shows factors which affect the operations in warehouse 38% of
Motivational factor.
14. The study shows supply chain management department is having sufficient
transportation 70% of0Yes.
15. The study of Attention and progress to boost the production shows 62% of Operational
activities.
16. The study shows supply chain department is facing problem in taking care of the raw
materials 42 of Packaging.
17. The study shows Technical issues in operating OB model 92% of says Yes.
18. The study shows working strategies of operation department on the basis of the current
program40% of Fair.
19. The study shows information regarding from how long vendors supplying goods to
PISPL 47% of respondents says 1-3 yrs.
20. The study says about issues in the payments made by PISPL 32 of respondents 64% of
says yes.
21. The study says If „yes‟ how would you rate the quality policy 42% of Good

 To analyze the activity of dispatch section

22. The study says information regarding comfort of receiving schedule followed by
PISPL 54% of No.
23. The study regarding the procurement price of PISPL says 56% as Average.

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 SUGGESTION

This chapter focuses on future prospects of operational management as well how to satisfy
customer while provide better products. The aim is to provide my recommendation for how the
store administration could improve their operational activities. And one main thing is that
company has to introduce some new strategies like expansion, acquisition, SBU (strategic
business Unit) which can improve the supply chain management of the company. Through this
supplier feel secure and try to continue with their services.

 Transportation facility should be revised & increased in order to meet the customer’s
requirement.
 Supply chain management department has to improve the packing design of the
products.
 Along with that company should provide proper training to their staff that problem
regarding the grading would not take place. Customer also had their view and suggestion
is better delivery of products and to proper communication with customer and fast in
service.

There are four key elements that effect the functioning of the ware house these are

 Quality of product
 High quality service
 Maintain good communication with the suppliers
 Always provide better support to vendors.

High quality service can be represented by speedy work, reliable servicing and sincere attitude
to the customer. All these can be achieved by:

 Trained service staff working in an equipped work shop.

 Training should be provided to the technician with latest updates of OB model
 Before making delivery schedule check the quality and quantity of products.
 Always monitor the warehouse and logistics for the better understanding of product and
services must reach on time to customer.

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 CONCLUSION

After doing his project in PISPL I understand how exactly the work is done in the supply chain
but after observing man things I reach to the conclusion that there are still many gaps in the
supply chain of the company and we must try our best to fulfill these gaps so that we provide
better service to our0customer and also reduce our operating cost because we are in value E
commerce so only cost cutting provides us better margins and to archive all this we have to
work hard and make strong relation with our vendors, logistics service provider and with
our customer.

 Products are developed to meet customer requirement.

 Brands are positioned so as to convey distinctiveness.
 Delivery to reinforce the promptness in making available to consumers a value added
products
 Create good relation with the vendors to attain a quality product from them response.

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 BIBLIOGRAPHY

ARTICLES: -

1. Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving
Service (Financial Times Management) -- Christopher Martin;
2. Introduction to Supply Chain Management -- Robert B. Handfield, Ernest L. Jr. Nichols
3. Advanced Supply Chain Management: How to Build a Sustained Competition -- Charles
C. Poirier
4. Supply Chain Management: The Basics and Beyond (The St. Lucie Press/Apices Series
onResource Management) ~ William C. Copacino / Published 1997
5. Basics of Supply Chain Management James E. Hill, / Published 1999
6. Introduction to Supply Chain Management ~ Robert B. Handfield, Ernest L. Jr. Nichols /
Published 1998
7. Quick Response in the Supply Chain Eleni Hadjiconstantinou(Editor), Eleni
Hadjiconstantinou (Editor/Published 1999)
8. Partnership Sourcing : An Integrated Supply Chain Management Approach (Financial
Times) Douglas K. MacBeth, Neil Ferguson / Published 1994
9. Global Cases in Logistics & Supply Chain Management David H. Taylor (Editor /
Published 1997

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WEBLIOGRAPY

 www.pispl.in

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