OVERALL PROCUREMENT EFFICIENCY IMPROVEMENT IN B2B

SECTOR AND SUPPLIER PROFILING

Synopsis

Submitted by

Aditya Shah
200909031
Mechanical Engineering
adisidshah25@gmail.com
9322405511

Under the guidance of

Dr. Nitesh Kumar Munish Malhotra
Assistant Professor (Senior Scale) Senior General Manager
Department of Mechanical and Industrial Procurement
Engg, MIT, Manipal
Blue Star Limited

Department of Mechanical & Industrial Engineering

February, 2024
1. Introduction:

The Wada plant at Blue Star is designed to eventually be Blue Star’s biggest
manufacturing facility. Modern manufacturing systems are being deployed
with the focus on quality systems through programmes like Lean
Manufacturing, Six Sigma, TPM and Kaizen.
They have undertaken a strategic initiative to elevate procurement efficiency
and refine supplier profiling in the B2B category for 3 models of air
conditioners being manufactured there. They are focused on optimizing
processes and strengthening supplier relationships.
This project aims to enhance operational performance, reduce costs, and
align procurement strategies with organizational goals. By adopting
advanced methodologies and fostering collaboration, it aspires to position
itself as a benchmark for industry best practices, contributing to the overall
competitiveness and resilience of Blue Star in the air conditioning and
refrigeration sector.

2. Objectives:

i. To comprehend the entire process flow, encompassing both manufacturing

and supply chain aspects, of the models produced at the facility.

ii. To identify and address any bottlenecks or inefficiencies present in each

stage of the procurement process during manufacturing.

iii. To propose solutions to enhance the overall workflow.

iv. To establish comprehensive supplier profiles for all the suppliers involved
in providing materials for each component of the models being
manufactured in the plant.

3. Methodology:

i. Understand the Supply chain of the Company and Data Collection:

Gain insights into the company's supply chain through an initial
understanding of its operations. Subsequently, conduct plant visits in
Wada to comprehend the entire manufacturing process of the three
distinct AC models. Acquire a comprehensive understanding of the
supply chain, tracing its path until the products reach the customers.
 ii. Current State Assessment:
Conduct a comprehensive analysis of the existing procurement processes
at the Wada plant. Identify bottlenecks, inefficiencies, and areas for
improvement by engaging with key stakeholders, including procurement
teams, department heads, and end-user and suggest ways to improve it.
Also find ways to tackle such problems.

iii. Key Performance Indicators (KPIs) Implementation:

Define and implement relevant KPIs to measure the success of the
revamped procurement processes. Monitor metrics such as cost savings,
lead times, supplier performance, and overall process efficiency to track
the impact of the implemented changes.

iv. Supplier Profiling:

Supplier profiling involves compiling essential information about each
supplier engaged in providing components or materials for the
manufacturing of products, covering aspects such as company details,
financial stability, production capacity, quality compliance, delivery
performance, risk assessment, communication channels and contractual
agreements. This comprehensive approach enables effective supply chain
management, risk mitigation, and informed decision-making, promoting
transparency and strong partnerships with suppliers. Regular updates
ensure adaptability in a dynamic business landscape.

v. Supplier Collaboration and Communication:

Establish clear communication channels with key suppliers. Foster
collaboration to enhance understanding and alignment of goals.
Implement regular performance reviews, feedback mechanisms, and joint
improvement initiatives to strengthen the buyer-supplier relationship.

By systematically implementing these methodologies, the Wada plant aims to

transform its procurement landscape, fostering efficiency, collaboration, and
resilience in the B2B category while aligning with the overarching goals of Blue
Star.
* The methodology mentioned above are tentative and may change depending on the any unforeseen circumstance
and the time remaining before the end of the internship.
3. Project Schedule:

Month 1: i) Comprehend the company's supply chain and data collection.

Month 2: i) Current State Assessment.

Month 3: i) Key Performance Indicators (KPIs) Implementation.

ii) Supplier Profiling.

Month 4: i) Supplier Collaboration and Communication.

*The timelines mentioned above are tentative and may change depending on the any unforeseen circumstance and
the time remaining before the end of the internship.

Details of the organisation (with postal address):

Blue Star Limited,

Blue Star Innovation Centre,
Next to Hotel Vihangs Inn,
Kapurbavdi, Ghodbunder Road,
Thane West – 400 607

Name of the Company Guide with contact no. and email address:

Name: Munish Malhotra

Contact no: 981809472
Email id: munishmalhorta@bluestarindia.com