Professional Documents
Culture Documents
INTRODUCTION
BEML Limited, formerly Bharat Earth Movers Limited, is an Indian public sector undertaking which
manufactures a variety of heavy equipment, such as that used for earth moving, railways, transport and
mining. It is headquartered in Bangalore. BEML is Asia's second-largest manufacturer of earth moving
equipment.
Supply chain management (SCM)has emerged as one of the principal areas on which leading-edge
companies are focusing to increase market share, profitability, competitive advantage and
shareholder value. While the term “supply chain management” is widely used, there is no general
agreement as to the definition and scope of the SCM concept. In fact, during the last several decades,
the term itself has evolved from “distribution" to “logistics” to “supply chain management.”
Supply chain management (SCM)is the oversight of the materials, information and financeas
they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply
chain management involves coordinating and integrating these flows both within and among
companies. It is said that the ultimate goal of any effective supply chain management is
sophisticated software systems with web interfaces that are competingwith web-based application
services providers(ASP)who promise to provide part or all of the SCM services for companies
who rent their services.
Overview of SCM Study
Supply chain management encompasses the BEML company and its business activities in plan,
making, delivering and using a product or service. Company business depends on the effective
function of supply chains together. Business fits into one or more supply chains and has a
role to play in each of them. The pace of change and the uncertainty about how markets
will evolve has made it increasingly important for a company to be aware of the supply
chains it participates in and to understand the roles it has to play. The company has learned
how to build and participate in strong supply chains to have a substantial competitive advantage
in their markets.
Supply chain management addresses the management of materials and information across
the entire chain rom suppliers to producers, distributors, retailers, and customers. Traditionally, a
company performs purchasing and marketing activities independently, so it is difficult to make
an optimal plan for the whole chain. It has been realized that actions taken by one member
of the chain can influence all others in the chain. More and more companies have gradually
recognized that each of them serves as part of a supply chain against other supply chains
in terms of competition, rather than as a single firm against other individual firms. Since 1990,as
information technology has continuously developed, it is possible to coordinate all
organizations and all functions involved in the whole chain. Consequently, supply chain
management has been increasingly receiving attention from both academic researchers and
practitioners.
Practicing supply chain management in the industry gives benefits to the company in
termsof utilizing man machine method and materials. The outcomes of this thesis show
the practicality of the SCM theory. Analysis used here is optimum utilization of the
resources through proper training methods, motivation techniques etc., A result obtains in the
thesis shows that inventory can control, control over duplication of work, the accuracy of
work, up the work, increase supply rate, and optimum utilization of resources.
ELEMENTS OF SUPPLY CHAIN MANAGEMENT
A simple supply chain is made up of several elements that are linked by the movement ofproducts
along it. The supply chain starts and ends with the customer
Customer-the customer starts the chain of events when they decide to purchase products that have
been offered for sale by a company.
Planning- the requirement triggered by the customer's sales order will be combined with other
orders. The planning department will create a production plan to produce the products to fulfil the
customer's order.
Purchasing - The purchasing department receives a list of raw materials and servicesrequired
by the production department to complete the customer's order.
Inventory- The raw materials received from the supplier, are checked for quality and
Production- From the suppliers based on the production plan, the raw materials are moved
inventory to the production area. The finished products ordered by the customers are
manufactured using the raw materials purchased
Transportation - When the finished products arrive in the warehouse, the shipping department
determines the most efficient method to ship the products so that they are delivered on or before
the date specified by the customer.
• Lower costs
• Better customer service
• Efficient manufacturing
• Better trust among the partners leading win-win
Process integration and other efforts result in improved quality as higher profit margins shall be
reflected in the creation of better facilities for manufacturing, product design research, and
enhancement of customer service.
Today's popular supply chain software can help companies achieve and maintain a competitive
edge by empowering them to streamline and enhance their most important supply chain operations
from start to finish. With the supply chain software in place the organization can maximize cost
efficiency, increase productivity and give their bottom line a big boost the above functionality is
designed to fully automate and support the supply chain process from end to end and includes:
Inventory management: With a supply chain package, companies can significantly improve the
way they track to track and manage their supply of raw materials and components needed for
production, finished goods to satisfy open sales orders and spare parts required to field service
and support. These elements excess waste and minimize related storage costs.
Order management: Supply chain software can dramatically accelerate the execution of the
entire order-to-delivery cycle by helping companies to more productively generate and track sales
orders. The supply chain also enables dynamic scheduling of supplier delivers to more effectively
meet demand and more rapid creation of pricing and product and configuration.
Essentially a company wants a supply chain that not only meets customers needs but alsoprovides
an edge against competitors. These require an organized approach to designing a supply chain.
There is a sequence of four decisions:
• Define the role of distribution within the market
Plan
The initial stage of the supply chain process of the planning stage. We need to develop a plan or
strategy to address how the products and services will satisfy the demands and necessities of the
customers. In this stage, the planning should mainly focus on designing a strategy that yields
maximumprofits.
Develop
After planning, the next step is to involve developing or sourcing, in this stage, we mainly
concentrate on building a strong relationship with the suppliers of the raw materials required
for theproduction. Companies need to select suppliers to deliver the items and services
they require to develop their products, so in this stage, the supply chain managers need to
construct a set of pricing delivery and payment process with suppliers and also create the
metrics for controlling and improving the relationship.
Finally, the supply chain managers can continue or combine all these processes for handling their
goods and services inventory. This handling comprises receiving and examining shipments.
Make
The third step in the supply chain management process is the manufacturing or making of the
products that were demanded by the customers. In this stage the products are designed, produced, tested,
packaged and synchronized for delivery.
Here, the task of the supply chain manager is to schedule all the activities required for
manufacturing or making products and preparation for delivery. This stage is considered themost
metric-intensive unit of the supply chain, firms can gauge the quality levels of production output and
worker's production.
Delivery
The fourth stage is the delivery stage. Here the products are delivered to the customers at the
destined location by the suppliers. This stage is the logistic phase where customer orders are
accepted and delivery of goods is planned. The delivery stage is often referred to as logistics where
firms collaborate for the receipt of orders from customers, establish a network of warehousing, pick
carriers to deliver products to customers and set up an invoicing system to receive payments.
Return
The last and final stage of the supply chain management is referred to as the return stage, defective
or damaged goods are returned to the suppliers by the customer's here, the companies need to deal
with customer's queries and respond to their complaints etc., This stage often tends to be a
problematic section of the supply chain for many companies. The planners of the chain need
to discover a responsive and flexible network for accepting damaged, and extra products back
from their customers and facilitating the returns process for customers who have issues with
customers who have to deliver products.
In this phase, the decision is taken by the management mostly. The decision to be made considering
the sections like long-term prediction and involves the price of goods that are very expensive if
it goes wrong. It is very important to study the market conditions at this stage.
All the strategic decisions are taken by the higher authority or the senior management.
These decisions include deciding to manufacture the materials, factory location, which should be
easyfor transporters to load materials and to dispatch at their mentioned location of warehouse
or storage of completed product or goods and many more.
Supply chain planning should be done according to the demand and supply view. To understand
customer demands, market research should be done. The second thing to consider is awareness
and updated information about the competitors and strategies used by them to satisfy their customer
demands and requirement. As we know different approaches. A supply chain design phase is
considered successful if it performs well in short-term planning.
Supply chain operations
The third and last decision phase consists of the various functional decisions that are to be made
instantly within minutes, hours or days. The objective behind this decisional phase is minimizing
uncertainty and performance optimization starting from handling them customer order to
supplying the customer with that product everything is included in this phase. For example
imagine a customer demanding an item manufactured by your company.
Initially the marketing department is responsible for taking the orders and forwarding them
to production departments and is responsible for taking the orders and forwarding them to
the production departments and inventory management. The production department then responds
to the customers.
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 the company supply chain management department function:
• Inventory management
• Materials handling
• ·Warehousing management
Moreover, supply chain management is expected to increase its range of responsibilities most
often in line with the thinking that sees the order fulfilment process as one coordinated set of
activities.
On the other hand, there is a certain function that some of us might feel logically belong to supply
chain management which companies feel is the proper domain of others departments. Most
difficult to bring under the umbrella of supply chain management are:
• Third-party invoice payment
• Master production planning
• Computer Systems
• Operational commissioning
• Computer simulation
year, two major trends are benefiting supply chain management operations. These are
Supply chain management has become top management's new "religion" then it needs a doctrine.
Anderson Consulting has stepped forward to provide the needed guidance, espousing what it calls
the “seven principles” of supply chain management. When consistently and comprehensively
followed the
consulting firm says, these seven principles bring a host of competitive advantages.
1. Segment customers based on service needs companies traditionally have grouped customers
by the industry, product or trade channel and then provided the same levelof services to
everyone
within a segment.
2. Customize the supply chain management network in designing their supply chain management
network, companies need to focus intensely on the service requirementsand profitability of
the
customer segment identified.
3. Listen to signals of market demand and plan accordingly sales and operations planningmust
span the entire chain to detect warning signals of changing demand in ordering patterns and
customer
promotions.
4. Differentiate products closer to the customer, companies today no longer can afford to
stockpile inventory to compensate for possible forecasting errors
5. Strategically manage the source of supply. By working closely with their key suppliersto
reduce the overall cost of owning materials and services supply chain management
leaders enhance margins both for themselves and their suppliers.
Strategic decisions regarding production focus on what customers want and the market demands first
stage in developing supply chain agility takes into consideration what and how many products to
be produced and what if any the component should be produced at which plants are outsourced
to the vendors quality control and workload balancing are the main factors which are needed to
be addressed during decision making. The production decisions must keenly focus on quality
the volume of goods and capacity so that the demand is met as the customer specification. On
the other hand operational decisions must throw light on the maintenance of equipment meeting
the current demand and scheduling the workloads.
Inventory
The strategic decision focuses on how many products must be there in the warehouse and inventory.
Too much inventory may bear costs anywhere between 25 and 45 percent of their value and having
less inventory may not meet the market demand. This is a crucial issue in supply chain
management. The operational decision must throw light on the maintenance of inventory in each
location that leads to customer satisfaction even levels particularly at order and reorder points.
This is a very critical operation that may keep high satisfaction in the customers.
Supply
Keeping high quality into account further the organization must determine whether it facilitates
in producing both efficient and economically. Most companies can't excel in their
performance in the manufacturing of all the components. The best alternative for this is
“outsourcing” which makes effective utilization of organization resources. Companies must
carefully select vendors for raw materials considering various factors like trust, honesty, leadtime,
credibility, quality, cost of maintenance etc. hence the strategic decisions must be in such a way
that outsourcing partnerships should grow from these decisions.
Information
Supply chain management to be very effective requires information from the point of
endusers, and by linking that information throughout the chain the exchange of
information takes place. Overall computer systems and paper flow are unacceptable inthis
Transportation
Transportation decisions are merely related to meeting customer demand and inventory decisions. Using air
transport gets the product out very quickly but the cost is high when compared to shipping by rail or boat.
One should always keep in mind that nearly 35%of the cost of a product is encompassed by
transportation using the correct transporting mode .Using sea or rail often means having a higher level
should be met, which ultimately depends upon the mode of transport. It is often seen that the mode
of transportation used operational decisions and ensure a smooth distribution of goods
Logistics
Logistics is one of the important segments of the phenomenon of marketing in business. It
is a bundle of goods ready to be supplied to the customers consisting of procurement or
raw materials, handling, transportation etc. “Logistics is the subset of supply chain
management”
SCM is large than logistics and it links logistics more directly within the user's total
communication network and within the firm staff, transporters, warehouses, retailers and
customers themselves and it involves suppliers the company resellers and final customers.
Logistics is defined as the process of anticipating customer needs and wants and
acquiring capital. Material, people, technologies and information necessary to meet those
needs and wants, optimizing the goods or service-providing network to customer requests
and utilizing the network to fulfil customer requests promptly.
All processes in a supply chain fall into one of two categories depending on the timing of their execution
initiated in response to customer orders. With push processes execution is initiated in anticipation
of customer orders .Therefore at the time of execution of a pull process, customer demand is known
with certainty whereas at the time of execution of a push process, demand is not known and must be
forecast. Pull processes may also be referred to as reactive processes because they react to customer
demand.
The internship of the research project is required to be with a company that matches the specialization
area. Practice is an in-plant study and project combination. We are expected to study an organization's
functioning, identify a problem area and suggest solutions to the problem.
Objectives of Internship:
• To enable us to manage resources, work within time limits, identify specific target-oriented tasks and
perform them.
• Sensitizing and familiarizing with corporate culture with the corporate code of place. Strengthen the
knowledge of the domain and provide cross-functional skills.
CHAPTER-2
COMPANY PROFILE
INDUSTRY PROFILE
General introduction
BEML Ltd is the leading manufacturer of heavy earth moving equipment in Asia and an Indian public
sector company under the Ministry of Defence Government of India. The company is engaged in the
manufacturing of rail coaches and spare parts and mining equipment at their Bengaluru complex. They
play a pivotal role and serve India's core sectors like Defence, rail, power, mining and infrastructure.
The company operates under the three major business verticals, namely mining and construction,
Defence and rail and metro. Mining and construction offer a range of mining ministries for both open
cost and underground mines. Rail and metro involve supplying integral rail coaches overhead electric
inspection cars and postal vans to Indian railways. The Defence division manufactures variants of the
Tatra vehicle for all-terrain operations including bridge layer field artillery tractor and medium and
heavy recovery vehicles. In addition to the above technology division, the company provides end-to-end
technology solutions in auto, aero, Defence and rail and metro-related areas. The trading division deals
with non-company products and commodities, such as iron ore, coal and steel billets for both captive in-
house requirements international business division deals with expert activities. The company has their
corporate head office and central marketing division located in Bengaluru, Karnataka, India. They have
four manufacturing facilities in Bengaluru, Mysore, Kolar gold fields in Karnataka and Palakkad in
Kerala India. They have an extensive procurement, sales and marketing network across India consisting
of4 zonal offices,10 regional offices,15 district offices and 6 service. centre's they have representative
offices in Singapore, China, Malaysia, Indonesia and Brazil. BEML Ltd was incorporated on May 11,
1964,as a public sector undertaking with the name Bharath Earth Movers Limited Ltd under the
administrative control of the Department of Defence Production and supplies ministry of Defence .The
company commenced operations at Bengaluru with the transfer of railway coach manufacturing facilities
from Hindustan Aeronautics Limited (HAL)with land, building, plant and machinery for consideration
of rupees 600 lakhs. In the very first year of starting operations, they started manufacturing a wide range
of wheeled mining and construction equipment under technical collaboration with a U S Company.
During the year 1967-68 the company commissioned a heavy earthmoving equipment division at Kolar
Gold Fields. In the year 1979.They entered into a collaboration agreement with Komatsu limited. Japan
and technical know-how in a wide range of mining and construction equipment such as bulldozers. In
the year 1985,the company established the Dump truck division at Mysore. Also, Vigny an industries
Ltd became a subsidiary of the company during the year by the transfer of shares constituting over 75%
from the GOK. In the year 1987, the company set up an exclusive hydraulics and powerline division and
a full-fledged R&D centre in Kolar Gold Fields (KGF) facility. In the year 1991 they set up their engine
division at Mysore for the manufacture of heavy-duty diesel engines. In the year 1992,the Govt of India
divested the equity shares in the company and on February 21,1992,the company was converted into a
public Ltd company. Also the company was recognized as an expert house with star exporter status
during the year. In the year 1994,the company shares were listed on the stock exchanges in Bengaluru,
Mumbai, Kolkata, Delhi and Chennai. Also the company launched the Mammoth equipment walking
dragline'. In the year 1996,the company entered a major counter-trade agreement with Syria executed
against the import of rock phosphate. In the year 1998,the company bagged orders against world bank
tenders valued at Rs70,000 lakhs for equipment supply to CIL projects. During the year 2003-04,the
company entered the metro railway business with the manufacture and supply of high-tech stainless steel
metro coaches at the Delhi metro rail corporation. In the year 2004,they acquired over 1,100 acres of
land and 2 workshops on a lease basis from the now-defunct public sector undertaking Bharath gold
mines limited in Kolar gold fields for supporting their expanding production activities in the defence
and railway sectors. Also they formally launched the 7 T class excavator-BE71 and Backhoe Loder-
BL9H.During the year 2005-06,the company introduced the R&D's innovative product load haul dumper
(LHD)BL15 and executed in the IMME-Kolkata. A four- cylinder indigenous engine B4D105 was
successfully built, tested, evaluated and fitted and fitted on one of the earth-moving equipment for user
trails. Also the in-house developed 20T class excavator BE200 has completed user trails and was
released for production. From April 1st 2006,the company underwent organizational restructuring to
improve its competitiveness in the global market. Consequent the company's operations were divided
into three business groups, namely mining and construction, Defence and railway and Metro business.
On April 12 2006, the company diversified into new business areas by opening two new divisions,
namely the technology division and the trading division. On August 29,2006,the company was conferred
Mini Ratna -Category 1'status by the Ministry of Defence. In September 2006 the company signed an
MoU with CCC(Compazine Comercio E Construcoes) and established a joint venture company for
manufacturing and supplying rail wagons and bogies, mining and construction equipment spares. In
December 2006,the company agreed with U S Based Terex mining to manufacture, sell and service and
to provide support for certain mining haul trucks of Terex design. In February 2007,Taneja Aerospace
&Aviation Limited signed an MoU with the company at Aero India 2007 to explore the aeronautical
offset opportunities in the Defence and civilian sectors and also the development opportunities in the
domestic market. During the year 2007-08,the company's R&D Centre developed pipe layer BP70X
with unique features like modular planetary winches mounted on one side for improved visibility, rugged
boom and pilot-operated hydraulic system. Also the company launched the R&D Centre-developed
equipment, namely the hydraulic excavator BE700 and transmission for BH35- 2.On April 18th 2007,the
company formed a joint venture company namely BEML Midwest Ltd at Hyderabad. The joint venture
is a professionally well -knit company with the company having a 45% share. Midwest Granite Pvt Ltd
and P T Sumber Mithra Jaya of Indonesia as partners with a 55%share. The name of the company was
changed from Bharath Earth Movers Limited to BEML Ltd with effect from October 5 th 2007.In October
2007,the company launched a marketing office cum warehouse in Malaysia in the name of BEML
(Malaysia) Sdn Bhd (787108-A)at Johor Bharu. Also they secured an order from the Delhi metro rail
corporation (DMRC)for the manufacture and supply of 156 numbers state of the art standing gauge
stainless steel metro cars for the second phase of operation worth Rs1,144 crore. During the year 2008-
09,the company's R&D developed BE300 with Rexroth hydraulics,BL200 re-engineered version,WS70
High-capacity water sprinkler,BA28 Aircraft Towing Tractor, transmission &Torque convertor for
BH35-2.In May 2008,the company entered into an MoU with the steel authority of India Ltd in which
SAIL will purchase a total number of 261 mining equipment over the next 3 years. Also the company
signed a long-term agreement for 12 years with coal India Ltd for joint production of Off-road (OTR)to
meet the requirement for production by the company and after- sale requirement by Coal India Ltd.
During the year 2009-10,the company's R&D developed snow cutter,125 Ton Excavator, Upgraded
version of BD65 with joystick controls for work attachment, Armchair steering control and hexagon
ROPs cabin, transmission and torque converter for BH50M.In April 2009,the company established their
assembly unit BEML Brazil industrial Ltd in Rio De Janeiro, Brazil. In august 2009,the company
launched their local company namely PT BEML Indonesia at Jakarta in Indonesia. Also they inaugurated
the Indonesian marketing cum spares Depot and service centre in Balikpapan, Indonesia. On October 8th
2009, the company received the construction world award 2009 for the fastest growing construction
equipment company by the union minister for roads transport and highways in Mumbai. On October
15,2009,the company received the SCOPE Award from the honourable Prime Minister for Excellence
and outstanding contribution to the public sector Management medium PSE Category for the year 2006-
07.On January 16,2010,the company received the golden peacock award (innovative management
category)at Bengaluru in March 2010,the company bagged an order worth Rs632 crore from the Ministry
of Defence for the supply of BEML Tatra variants. On May 16 th 2010, the company inaugurated the
green field project at Kanji Kode, Palakkad and the unit became operational rolling out Defence products
and rail parts. In 2010,the company signed an MoU with Karnataka Govt for establishing another
manufacturing complex in Bengaluru. On February 7th 2011,the BEML Aerospace Manufacturing
Division at Mysuru with horizontal machining centre facilities was inaugurated at their Mysuru complex.
The division will manufacture gears for helicopters, gigs for aircraft structures, manufacturing of
aerospace components, fabrication of structural sub- assemblies for Su-30 aircraft and a variety of
ground support and ground handling equipment. Further the new division will undertake the manufacture
of complex gears and gearboxes for helicopters and Acro engines, Landing gears of aircraft, fabrication
of minor and major structural assemblies and upgrades of aircraft and helicopters. Industry Background
Study Earth Moving Division (EMD)at Kolar Gold Fields (KGF)is located about 100 km from
Bangalore. It is the biggest manufacturing plant of BEML and was established in 1964.It caters to the
Design & Development, Manufacturing, Testing and After-Sales-Service of Earth Moving Equipment
and its aggregates. The Division is accredited with ISO 9001-2008 Certificate for QMS by BVCL. The
Division is spread over 2980 acres of land well connected by roads and rail sidings enabling easy
transport of heavy equipment &structures through special rakes, trailers etc. The Division manufactures
Bull Dozers, Hydraulic Excavators, Wheel Dozers, Tyre Handlers, Pipe Layers, Rope Shovels and
Walking Draglines for the Mining and Construction Industry; Heavy Duty TATRA Trucks, Heavy
Recovery Vehicles (HRV), Armoured Recovery Vehicles (ARV),and other aggregates for the Defence
Sector. Other products manufactured include Under Carriage Parts, Final Drivers and Transmissions for
Dumpers and Motor Graders and Disaster Management Equipment. The Division is equipped with one
of the best R&D Centres in Asia with modern infrastructural and testing facilities. Also the Division has
one of the biggest Machine Shops in Asia housing machine tools of different types and varieties with
dedicated product lines, Gear Shop, Fabrication Shops with the latest welding facilities including
Robotic, Plate Preparation Shop and an exclusive Heavy Equipment Shop to handle major fabrication
of structures weighing 100 T. The Division is structured into different strategic business units like SBU
Excavators, SBU Dozers and SBU Undercarriage Manufacturing. Manufacturing Facilities EM Division
is very well equipped with the latest facilities for manufacturing high-quality equipment listed above.
This division's current available facilities include:
Machining Facilities
The above machines and general machining activities are spread over in different shops, Viz, Machine
Shop-I, Machine Shop-II, etc. These house machines are arranged in all combinations of layouts catering
to process type and product type to achieve maximum output efficiency. The facilities in the Division
include:
Gear Manufacturing Facilities
• Shaping
• Grinding
• Gear Shaving
• Vertical Broaching
• Horizontal Broaching
State-of-the-Art CNC Gear Grinding Machine from Hofer Germany, produced recently has added a new
dimension to the gear manufacturing capabilities of the EM Division. Gear Shop also houses a Metrology
Laboratory where Gear Testers of various makes including the latest CNC Profile Helix Gear Tester from
Wenzel, Germany are available:
• Plate Bevelling
• Plate Shearing
Fabrication activities are spread over 4 shops, viz., Fabrication Shop, Dozer Fabrication Shop, Minor
Fabrication Shop and Heavy Equipment Shop
These facilities have also got a separate Pipe Manufacturing Unit with NC Pipe Bending Machines and
different welding processes including TIG.
Environmental Protection
BEML has been evincing keen interest in the afforestation programme in and around the BEML factory,
township and surrounding areas. Due to consultation efforts of BEML Management over two hundred
thousand trees have come up in and around KGF and the area is quite green. Norms laid down by the
water and air pollution control board have been fully complied with. All the effluents and discharges are
released to the oxidation ponds and recycling arrangements have been carried out on regular basis.
Fulfilment of Social Obligation
a) Educational Facilities
Kendriya Vidyalaya of grade +2 level a High School a Primary School Two Nursery Schools and a Junior
College are provided to educate the employee's children. Typewriting and shorthand institutes and
computer centres are run for the benefit of employees and employees' children.
b) Welfare Measures
Apart from the above Housing (Township) with 1500 Quarters for Officers and Employees Co- operative
Stores, Sports, Rehabilitation of widows, Welfare of physical handicap Welfare of SC/ST, full-fledged
Medical Centre with over 100-bed capacity hospital equipped with all modern facilities and a term of
experienced Doctors and Paramedical staff, Transportation facilities, Workers education scheme, Merit
scholarship for employees children etc., have been provided for the benefit of employees under welfare
Measures. Also a full-fledged Sports Complex with a Stadium having a seating capacity of around 15000
to 20000 personnel and a well-maintained Swimming Pool, Golf course, Lawn Tennis court, Shuttle
Badminton Hall, Billiards, Carrom, Squash and a health club with modern equipment are the other
facilities available for the upkeep of health and sports activities. Tournaments are held at regular intervals
in almost all the sports activities separately for gents, ladies and children. For recreation and for
conducting cultural programmes there is two Auditorium, where films in different languages are screened
weekly and film festivals are also organized occasionally. Kalakshetra &Open- Air theatre for conducting
cultural programmes and other functions are available. Also a full-fledged EM-Club for Executives with
a beautiful location surrounded by hills on one side and a green lawn & well-maintained garden on the
other side has facilities like a TV Hall, Reading Room/ Library, Bar a Guest House with fully furnished
rooms. c)Society Development Also BEML plays a vital role in Rural development, BEML adopted the
village Dasorahosahalli situated 2.5 km from EM Division. The welfare of women Welfare of youth Blood
donation, National savings, Fire protection and community medical care are the other activities carried
out by KGF Complex towards social development and improvement. Origin of Industry Earth Moving
Division(EMD)at Kolar Gold Fields (KGF)is located about 100 km from Bengaluru. It is the biggest
manufacturer of BEML and was established in the year 1964.It caters to the Design & Development,
Manufacturing, Testing and After-Sales-Service of Earth Moving Equipment and its aggregates. The
Division is spread over 2980 acres of land well connected by roads and rail sidings enabling easy transport
of heavy equipment &structures through special rakes, trailers etc. The Division manufactures Bull
Dozers, Hydraulic Excavators, Wheel Dozers, Tyre Handlers, Pipe Layers, Rope Shovels and Walking
Draglines for the Mining and Construction Industry; Heavy Duty TATRA Trucks, Heavy Recovery
Vehicles (HRV), Armoured Recovery Vehicles(ARV)and other aggregates for the Defence Sector. Other
products manufactured include Under Carriage Parts, Final Drives and Transmissions for Dumpers and
Motor Graders and Disaster management equipment The Division is equipped with one of the best R&D
Centres in Asia with modern infrastructural and testing facilities. Also the Division has one of the biggest
Machine Shops in Asia housing machine tools of different types and different varieties with dedicated
product lines, Gear Shop, Fabrication Shops with the latest welding facilities including Robotic, Plate
Preparation Shop and an exclusive Heavy Equipment Shop to handle major fabrication of structures
weighing 100 T. The Division is structured into different strategic business units like SBU Excavators,
SBU Dozers and SBU Undercarriage Manufacturing. Growth of Industry Bharat Earth Movers Limited
Ltd (BEML Ltd) unit in Kolar Gold Fields (KGF)is getting ready for expansion to meet the growing
demand and to tap the potential in the field of metro coach manufacturing. The unit has also resolved to
revive the glory of Kolar Gold Fields which is dwindling after the closure of gold mining activities by
Bharat Gold Mines Limited (BGML). After the closure of BGML, situated adjacent to the BEML
complex, BEML has acquired 1,109 acres of BGML land. It includes two closed-down workshops. All
these have been done with the due approval of the Ministry concerned. On the acquired land of BGML,
the company has constructed a 1.8 km test track. Defence equipment would be put into various rigorous
conditions on this test track, sources said. The two workshops acquired by BEML have gone on stream.
The erstwhile Central Workshop of BGML is one among them. Now it has been turned into a heavy
fabrication unit of the BEML. The other workshop, earlier known as Nandidurg Workshop, has been
turned into a rail product manufacturing unit where various rail aggregates will be manufactured. It is set
to be converted as rail coach unit II of BEML to implement orders for manufacturing second- class rail
coaches and military wagons. As a consequence, the rail coach division in Bengaluru will be converted
into a metro manufacturing division the sources revealed. These expansion projects have raised the hopes
of employment for the people of the region. Owing to the up gradation of the rail product fabrication unit
into a manufacturing unit of rail coaches, some of the existing employees on a contract basis would be
absorbed into the BEML. Most of these employees are former workers of BGML or their children it is
learnt. Regularization of services of the others will be considered depending on the requirement, it is said.
BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as a Public Sector
Undertaking for the manufacture of Rail Coaches &Spare Parts and Mining Equipment at its Bangalore
Complex. The Company has partially disinvested and presently Government of India owns 54 per cent of
the total equity and the rest of 46 per cent is held by the Public, Financial Institutions, Foreign Institutional
Investors, Banks and Employees. BEML Limited a ‘Schedule-A’ Company, plays a pivotal role and serves
India's core sectors like Defence, Rail, Power, Mining and Infrastructure. The Company started with a
modest turnover of Rs.5 Cr in 1965 and today thanks to its diverse business portfolio the company has
been able to achieve a turnover of more than Rs.3,500 Cr. The Company operates under three major
Business verticals viz.,
Mining & Construction, Defence and Rail &Metro. The three verticals are serviced by nine
manufacturing units located in Bangalore, Kolar Gold Fields (KGF) Mysore, Palakkad and Subsidiary-
Vignyan Industies Ltd,in Chikmagalur District. Each Business vertical is headed by a director who
reports to the Chairman &Managing Director of the company. The products manufactured under the
three Business Vertical.
BEML's products are sold and serviced through its large Marketing Network spread all over the Country
and are exported to more than 68 countries. BEML's nationwide network of sales offices enables buyers
with ready access to its wide range of products. Also the full-fledged service centres and parts depots offer
total equipment care maintenance contracts and rehabilitation services. The company has a dedicated
R&D infrastructure and team in line with the consistent policy of the company to meet the technological
demands through in-house R&D and strategic technical tie-ups with global players.
Overview-BEML Facilities
Manufacturing Facilities
3.Bangalore Complex
4.Palakkad Complex
5.Vignyan Industries Limited, a subsidiary located at Tarikere (around 300 km from Bangalore)
MARKETING NETWORK
Domestic
REGIONAL OFFICES DISTRICT OFFICE SERVICE CENTRES
BENGALURU HOSPET
BILASPUR BILASPUR
NEYVELI CHENNAI, KOCHI
DHANBAD
HYDERABAD KOTHAGUDEM, RAMAGUNDEM, HYDERABAD
BACHELI, VISHAKHAPATNAM,
VIJAYAWAD
KOLKATA ASANSOL, GUWAHATI KOLKATA
MUMBAI AHMEDABAD, UDAIPUR, PANJIM
NAGPUR BHILAI, CHANDRAPUR, BHOPAL
NEW DELHI JAMMU, LEH NEW DELHI
RANCHI
SAMBALPUR BHUBANESHWAR
SINGRAULI SINGRAULI
Board of Directors
Chairman &Managing Director, (Rail &Metro Business) Shri Shantanu Roy
Company Secretary Mehul Shahani
Director (Mining &Construction Business, Human Resources) M V Rajasekhar
Director (Defence Business &Finance Ajith Kumar Srivasta
Government Director-Part Time P K Mish
Government Nominee Director, Joint Secretary (Land System), Puneet Agarwal
Dept.of Defence Production, Ministry of Defence
Area of Operation
Earth Moving Division (EMD)at Kolar Gold Fields (KGF)is located about 100 km from Bengaluru. It
is the biggest manufacturing plant of BEML and was established in 1964.It caters to the Design&
Development, Manufacturing, Testing and After-Sales-Service of Earth Moving Equipment and its
aggregates. The Division is accredited with ISO 9001-2008 Certificate for QMS by BVCL. The
Division is spread over 2980 acres of land well connected by roads and rail sidings enabling easy
transport of heavy equipment &structures through special rakes, trailers etc. The Division manufactures
Bull Dozers, Hydraulic Excavators, Wheel Dozers, Tyre Handlers, Pipe Layers, Rope Shovels and
Walking Draglines for the Mining &Construction Industry; Heavy Duty TATRA Trucks, Heavy
Recovery Vehicles (HRV), Armoured Recovery Vehicles (ARV)and other aggregates for the Defence
Sector. Other products manufactured include Under Carriage Parts, Final Drivers and Transmission of
Dumpers and Motor Graders and Disaster Management Equipment.
Ownership pattern
Competitors information
1. Caterpilar Inc., 1s an American corporation which designs, manufactures, markets and sales
machinery, engines, financial products and insurance to customers via a worldwide dealer network.
Caterpilar is the world’s leading manufacturer of construction and mining equipment, diesel and natural
gas engines, industrial gas turbines and diesel-electric locomotives. With more the US $89 billion in
assets, Caterpilar was ranked number one in its industry and number 44 overall in the 2009 Fortune 500.
Caterpilar stock is a component of the Dow Jones industrial Average. Caterpillar lnc., traces its ongoing
stock the1925 merger of the Holt Manufacturing Company and the C.L. Bes Тгасtоr Company, creating
a new entity, California-based Caterpillar Tractor Company. ln 1986, the company ге- organized itself
as a Delaware corporation under the current name, Caterpillar lnc. Caterpillar’s headquarters are located
in Peoria, Illinois, United States.
2. Komatsu Ltd. is a Japanese multinational corporation that manufactures construction, mining, and
military equipment, as well as industrial equipment like press machines, lasers and thermoelectric
generators. Its headquarters are at 2-3-6, Akasaka, Minato, Тоkya, Japan. The corporation was named
after the city of Komatsu, lshikawa, where the company was founded in 1917. Komatsu is the world’s
second-largest manufacturer of construction equipment after Caterpillar. However, in some areas (Japan,
China), Komatsu has a larger share than Caterpillar. It has a manufacturing operations in Japan, Asia,
the Americas and Europe.
Achievements &Awards
• CMD received the SCOPE Award for Excellence and Outstanding Contribution to the Public
Sector Management-Medium PSE Category D for the year 2006-07.
• CMD received Raksha Mantri's Award for ‘BEST DEFENCE PSU’ for the year 2007-08. ·
• CMD received the ‘BEST PSU AWARD' institute by India's leading B School Indian Institute
of Planning &Management held at Bengaluru on 25 March 2009.
• Southern Region of EEPC India awarded BEML with Silver Shield’ for Star Performer as a
Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum on
11h February 2009.
• CMD received the ‘Raksha Mantri's Award for Excellence for ‘Best Performance in Exports’
held in New Delhi on 7h November 2008.
• Conferred ‘Star Performer Award’ by Engineering Export Promotion Council Southern Region
on 24th November 2007.
Strength
• Despite being a PSU, has excellent manufacturing facilities.
• Has a huge national wide sales centres print.
• Also diversified into vehicles, logistics and other solutions-based operations.
• BEML manufactures a wide range of products to meet the needs of Mining, Construction,
Power, Irrigation, fertilizers, Cement, Steel and Rail Sectors.
Weakness
Opportunities
• The growing residential sector in Asia.
• Current export policies for BEML could open up huge opportunities.
• Encouraging govt policies can boost company performance
Threats
BEML Limited (formerly Bharat Earth Movers Limited) is a public sector undertaking in India
that operates in the manufacturing sector, primarily focusing on heavy engineering and infrastructure
equipment. Evaluating the future growth and prospects of BEML involves analysing various factors that
can influence its performance and market position.
Chapter 3
Research Methodology
Title of the study:
The research was conducted at BHARATH EARTH MOVERS LIMITED, KGF Complex. To learn
about the supply chain management integration and globalization in the age of E-business when it
comes to BEML Ltd.
Every company struggles to satisfy their needs and wants. In this competitive market ,every company
has its position. Every has its policies, channels and management.
The implementation and usage of supply chain management practices are limited in PSU sectors
because of strong defence towards implementation and usage in their regular practices due to SCM
procedures and activities , upgrading of new technologies available in the market to overcome the
competition, fear of unknown factors, lack of knowledge ,lack of coordination , financial implication ,
lack of training need as they desire and also various problems in supplier and customer collaboration in
the age of E-business.
• To provide an uninterrupted flow of materials, suppliers and services required to operate the
organization on the E-business platform.
• To study to integration, harmonization and standardization of SCM across company.
• To know about online procurement and supply activities in the SCM process and real-time data
processing.
• Identify the key area, players and activities of the supply chain including the impact of integrated
services.
• To minimize costs while satisfying customer with delivery time and quality.
• To understand how and why companies use coordination and collaboration schemes to improve
supply chain performance integration and globalization at the time of E-Business.
The study work is conducted to know briefly about marketing techniques and strategies used in a
public sector company. It also helps the organization to find out the roles and responsibilities of
individuals in the organization. It identifies any problem and provides a solution for the problem.
Exploratory Research
Exploratory research is described as an investigation into an issue that is not well defined. It is carried
out to gain a better knowledge of the current situation, but the results will not be definitive. A researcher
begins with a broad concept and utilizes the study as a tool to uncover concerns that might be the subject
of future research. One important factor to examine is the researcher’s willingness to change direction if
new information or insight becomes available. This type of study is frequently done when the problem is
still in its early stages. Because it is used to answer questions like what, why, and how, it is also known
as the grounded theory method or interpretative research.
Sampling Plan:
It gives the target employees in the company that will be sampled. This research was carried out in
BEML Ltd,
KGF Complex.
Sampling size: 98
Sources of data:
Primary Data:
Primary data were collected using a questionnaire. The research team interviewed 98 respondents in the
Marketing Division of BEML Ltd KGF complex. A personal interview method was adopted with the
help of questionnaire. The questionnaire contains 20 questions with both open ended and close ended
questions. The respondents were requested to give their opinion on all the questions in the questionnaire.
Secondary Data:
Secondary data were collected using many sources such as annual reports of the company, company
brochures, magazines, books and websites.
Population
The population may be described as a collection of items (people or objects) that have certain common
features indicated by the research’s sample criteria.
The data collected through a questionnaire will be analysed and interpreted by making use of charts and
graphs.
Chapter 4
Data analysis and interpretation
Table no.1
Table showing the age of the respondents
PARTICULARS RESPONDENTS PERCENTAGE%
20-25 4 4.8
26-45 24 24.4
46-55 30 30.6
56&Above 40 40.2
Total 98 100
Graph no.1
Respondents
24
40
30
Table no.2
The following table shows the gender of the respondents
Male 90 91.8
Female 8 8.2
Total 98 100
8.20%
91.80%
Male Female
Interpretation:
From the above graph, it is clear that out of 98 respondents ,91.8% are male and 8.2% are female
employees.
Table no.3
The following table shows the reasons for the implementation of SCM
Total 98 100
Out of 98 respondents,8.1% respondents said that the influence of SCM implementation is from Inventory
control,13.2% from Improving production,24.4% from customer satisfaction,12.2% from Effective
planning,6.4% from Effective marketing and 35.7% respondents said that the influence of SCM
implementation forms the Inventory control, Improving the production, Customer satisfaction, Effective
planning and Effective marketing so,they selected All the above from the given options.
Graph No.3
The following graph shows the reasons for the implementation of SCM
13
35
24
12
Interpretation:
Out of 98 Respondents,35.7%respondents said that the influence of Supply Chain Management's
implementation is from Inventory control, Improving production, Customer satisfaction, Effective
planning and Effective marketing so, they selected all of the above from the given options.
Table no.4
The following table shows the need for upgradation of SCM Software
Often 50 51.2
Sometimes 39 39.7
Rarely 7 7.1
Seldom 2 2
Total 98 100
Out of 100 Respondents,51.2%respondents said that the upgradation of SCM Software said
Often,39.7%said sometimes,7.1% said rarely and 2% said seldom about the need for upgradation of SCM
Software.
Graph no.4
2
7
50
39
Interpretation:
Out of 98 Respondents,50%respondents said that need for upgradation of SCM Software often which
means that the often upgradation of SCM Software will help to reach the needs of the organization.
Table No:5
The following table shows the Supply/delivery activities of spares.
Excellent 37 37.7
Average 8 8.1
Poor 3 3.2
Good 50 51
Total 98 100
Out of 98 Respondents,51 %of respondents said that the supply/delivery activities of spares are
good,37.7%of respondents said excellent ,8.1%of respondents said average, and 3.2% of respondents
said poor.
Graph no.5
37
50
8
3
Interpretation:
By seeing the above graph out of 98 Respondents,50%of respondents said that the Performance of
Supply/delivery activities of spares is good, which means that the performance of supply/delivery
activity of spares is good concerning another departments/branches.
Table No.6
The following table shows the distribution channels for delivering products
Wholesalers 2 2.2
Retailers 5 5.1
Dealers 18 18.3
Total 98 100
Out of 98 Respondents,2.2% of respondents said distribution channels for delivering the products adopted
by the company are through wholesalers,5.1% of respondents said retailers,18.3% respondents said
dealers, and 74.4%respondents said their own dealers.
Graph no.6
The following graph shows the distribution channels for delivering products
2.2 5.1
18.3
74.4
Interpretation:
By seeing the above graph out of 98 Respondents,74.4 % of respondents said they own dealers for
delivering the products to the customers, which means the company has its own dealers in delivering the
product.
Table no.7
By seeing the above table out of 98 Respondents,4.1% of respondents said the location of distributors is
at the state level,6.1% of respondents said national level,35.7% of respondents said globally, and 54.1%
of respondents said all the above.
Locations of distribution
4
6
53 35
Interpretation:
By seeing the above graph out of 98 Respondents,53%respondents said all the above, which means the
locations of distributors of the company are located everywhere i.e., state level, national level, and
globally.
Table no.8
The following table shows the mode of transportation used to deliver goods to the distributors.
Roadways 15 15.1
Railways 2 2.1
Waterways 1 1.1
Airways 1 1.1
Total 98 100
As per the above table out of 98 Respondents,15.1%respondents said roadways are used as a mode of
transportation to deliver the goods to the distributors,2.1%respondents said railways,1.1%respondents
said waterways,1.1%respondents said airways, and 80.6% respondents said all the above.
Graph no.8
The following graph shows the mode of transportation used to deliver goods to the distributors.
15.1
2.1 1.1
1.1
80.6
Interpretation
By seeing the above graph out of 98 Respondents,80.6%respondents said all the above, which means the
company uses all the modes of transportation to deliver the goods to the distributors i.e., roadways,
railways, waterways and airways.
Table no.9
The following table shows the orders received for a product by the customer.
As per the above table out of 98 Respondents,40.9%of respondents said yearly customers receive the
order for a product,8.1% of respondents said monthly,5.1% of respondents said weekly, and 45.9 %of
respondents said whenever required
Graph no.9
The following graph shows the orders received for a product by the customer
40.9
45.9
5.1 8.1
INTERPRETATION:
By seeing the above graph out of 98 Respondents,45.9%of respondents said whenever required, which
means the company will receive the order for a product only whenever it is required by its customers
Table no.10
The following table shows the overall coordination of SCM
Particulars Respondents Percentage
Excellent 38 38.7
Good 50 51.1
Average 8 8.2
Poor 2 2
Total 98 100
Graph no.10
The following graph shows the overall coordination of SCM
2
8.2
38.7
51.1
Interpretation:
By seeing the above graph out of 98 Respondents,51.1%of respondents said good, which means the
company's overall coordination of SCM is good.
Table no.11
The following table shows the techniques adopted for betterment in the marketing field in E-Business.
As per the above table out of 98 Respondents,83.6%of respondents said the company uses SAP
techniques adopted for the betterment of the marketing field in the age of E- business,12.2% of
respondents said SRM,1.2% of respondents said Hub Spot, and 3%of respondents said Lead Squared.
Graph no.11
The following graph shows the techniques adopted for betterment in the marketing field in E-Business
83.6
Interpretation:
By seeing the above graph out of 98 Respondents,83.6 % of respondents said SAP, which means the
company adopt SAP techniques for betterment in the marketing field in the age of E-Business.
Table no.12
Total 98 100
23.4
39.1
18.3
17.2
Interpretation:
By seeing the above graph out of 98 Respondents,39.1%of respondents said all of the above, which
means the company's reason behind improving the SCM techniques is for customer satisfaction,
effective marketing and inventory control.
Table no.13
Fast 63 64.2
Slow 2 2
Total 98 100
Out of 98 respondents,30.6% of respondents said that the speed of product delivery is very fast,64.2%
respondents said fast,3.2% respondents said slow, and 2% respondents said that the speed of product
delivery is very slow.
Graph no.13
3.2 2
30.6
64.2
Interpretation:
Out of 98 Respondents,64.2%respondents said that the speed of product delivery to the customer is fast.
This means that the company deliver the products to the customer fast .
Table no.14
The following table shows according to customers does SCM helps in achieving customer satisfaction.
Agree 55 56.1
Disagree 1 1.1
Total 98 100
As per the above table out of 98 Respondents,31.6% of respondents strongly agree that the SCM helps in
achieving customer satisfaction,56.1% of respondents said they agree, 9.1% of respondents said neither
agree nor disagree,1.1% of respondents said they disagree, and 2.1% of respondents said strongly disagree.
Graph no.14
The following graph shows according to customers does SCM helps in achieving customer satisfaction.
1.1
2.1
9.1
31.6
56.1
Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree
Interpretation
By seeing the above graph out of 98 Respondents,56.1 % of respondents said they agree, which means
respondents agree that according to customers SCM is helping in achieving customer satisfaction with
the company.
Table no.15
E-Procurement 26 26.5
Outsourcing 10 10.2
Others 3 3.2
Total 98 100
Out of 98 respondents ,43.8% respondents said that a close partnership with supplier and customer will
manage the SCM, 16.3% respondents said JIT Approach ,26.5% respondents said E-Procurement,10.2%
respondents said that the outsourcing 3.2% respondents specify the other option.
Graph no.15
3.2
10.2
44.8
26.5
16.3
Close partnership with suppliers & customers JIT Approach E-Procurement Outsourcing Others
Interpretation:
Out of 100 respondents,44.8%respondents said that the close partnership with suppliers and customers
will manage the SCM. This means that if there is a good relationship between supplier and customer
automatically manages the SCM.
Table no.16
The following table shows the area in which the company is facing problem.
Particulars Respondents Percentage
Purchasing 19 19.3
Receiving 14 14.3
Inspection 4 4.1
Logistics 12 12.2
Storage 4 4.1
Packing 18 18.3
Sales 5 5.3
Production 4 4.1
Servicing 18 18.3
Total 98 100
From the above table out of 98 Respondents,19.3%respondents said the company is facing problems in
purchasing,14.3%respondents said receiving,4.1% respondents said inspection,12.2% respondents said
logistics,4.1%respondents said storage,18.3% respondents said packing,5.3%respondents said
sales,4.1%respondents said production, 18.3 % respondents said service and 0 for none of the above
option.
Graph no.16
The following graph shows the area in which the company is facing problems
18.3 19.3
4.1
5.3
14.3
18.3 4.1
12.2
4.1
Interpretation
All the areas of SCM activities are facing problems according to all respondents whereas servicing area
has got high rates. This means that the SCM is facing more problems in the servicing area.
Table no.17
The following table shows the frequency of collecting feedback from customers
Respondents Percentage
Particulars
Very frequently 14 14.2
Frequently 67 68.3
Moderately 11 11.3
Rarely 3 3.1
Total 98 100
Analysis of table
As per the above table out of 100 Respondents, 14.2%of respondents said customers are contacted very
frequently for collecting feedback,68.3%of respondents said frequently, 11.3%of respondents said
moderately,3.1% of respondents said rarely, and 3.1%of respondents said very rarely.
Graph no.17
The following graph shows the frequency of collecting feedback from customers
3.1
3.1
14.2
11.3
68.3
Interpretation:
By seeing the above graph out of 100 Respondents,68.3%of respondents said frequently, which means
the customers are contacted frequently for collecting feedback on the service the company provide
Table no.18
The following table shows the software adopted for online procurement.
SAP 65 66.3
SRM 7 7.1
Total 98 100
The following table shows the software adopted for online procurement.
19
7
65
Interpretation:
By seeing the above graph out of 98 Respondents,66.3% of respondents said SAP, which means the
company adopt SAP software for online procurement so that the company can do even better in online
procurement.
Table no.19
Komatsu 32 32.6
Volvo 3 3.1
Caterpillar 38 38.7
Hitachi 3 3.1
Escorts 5 5.2
Total 98 100
As per the above table out of 98 Respondents,32.6 %of respondents said Komatsu is the main competitor
of the company,3.1% of respondents said Volvo,38.7% of respondents said Caterpillar,3.1% of
respondents said Hitachi,17.3 % of respondents said Larsen &Turbo, and 5.2% of respondents said Escorts
is the main competitor of the company.
Graph no.19
The following table shows the main competitor of the company
z
5.2
17.3
32.6
3.1
3.1
38.7
Interpretation:
By seeing the above graph out of 98 Respondents,38.7% of respondents said Caterpillar, which means the
main competitor of the company is Caterpillar.
Chapter 5
Conclusion Findings And Suggestions
Conclusion
A study of BEML Limited KGF’s Supply Chain Management functionalities has been performed. SCM
implementation has simplified the whole company process while improving operational effectiveness,
increasing productivity, and delivering complete transparency.
Although BEML’s supply chain activity has great overall degree of integration, on the
firms needs to focus more on standardising its products and necessary spare parts. Additionally, specialist
teams must be created and adequately trained to develop, run, and maintain SCM functions. Since
everyone is not going as supposed, BEML must continue working towards integrating all its suppliers and
customers into the SCM platform.
Planning and forecasting, purchasing, product manufacturing, transportation, storage and keeping
track of a product as its proceeds towards users and other customers are indeed the major aspects of
concentrate in supply chain management. From the suppliers to the production and initially to the
customers, the supply chain needs to move here.
BEML constantly continue to follow relationships with its customers and suppliers.
Supply chain management is crucial in fulfilling client demands. The above-mentioned study is being
conducted to evaluate the degree of integration throughout BEML’s supply chain units. To satisfy clients,
the corporation is focusing more on managing its supply chains presents days.
Findings:
Based on the collected information, the data is compiled, analysed and interpreted as required.
The findings are as shown below.
➢ The implementation of supply chain management is based on the following factors: effective
planning, efficient marketing, increased customer satisfaction, and inventory control.
➢ In comparison to other departments or divisions, the supply/delivery activities for spare parts are
performing effectively.
➢ The company uses its dealers to transport its products to customers.
➢ The company maintains distributors all over the world, including at the state, national and global
levels.
➢ The company utilizes all modes of transportation, including roadways, railways, waterways, and
airways to deliver the products to the distribution.
➢ The company receives an order for a product when one requests it.
➢ The company develops SCM techniques for customer satisfaction, effective marketing and inventory
control.
➢ The company strengthens SCM skills for customer satisfaction, effective, marketing, and inventory
control.
➢ Respondents agree that SCM is beneficial in achieving customer satisfaction with the company, as
expressed by consumers.
➢ To enhance its effectiveness in online procurement, the firm implements SAP software. The SCM
of the company is experiencing increasing issues in the service sector.
Suggestions
Based on the survey and analysis of the study, the recommendations are given, which may help the
company in better usage of Supply Chain Management.
➢ To ensure a regular supply of products and to quickly fulfil customer requirements, the company
needs to keep strong connections with its suppliers.
➢ Since its dealers perform as the company's executives to its customers. To widen its network and
effectively meet the requirements of its customers, the company should think about hiring more
dealers.
➢ The survey revealed that the SCM department is having issues with servicing, purchasing and
packing. To increase operating efficiency the management should concentrate more on these areas.
➢ To handle transportation and other integrated supply chain-related duties, a separate logistics
department could be established.
➢ The company can choose customization so that the requirements of the customers can be served
successfully
➢ To improve performance and retain existing customers, the company must concentrate on the
rival's activities.
Bibliography
Books
Newspapers
Websites
1. www.bemlindia.com
2. http://en.wikipedia.org/wiki/BharathEarthMovers
3. www.earthmovingindustry.com
4. www.bemlindia.net.in
Questionnaires
3. What are the main reasons for the implementation of SCM at BEML Ltd?
a. Inventory control
c. Customer satisfaction
d. Effective planning
e. Effective marketing