PROJECT REPORT ON

“SUPPLY CHAIN MANAGEMENT”
CONDUCT AT

“LAKSHMI PRECISION SCREWS LIMITED”
SUBMITTED TO

THE MAHARISHI DAYANAND UNIVERSITY ROHTAK

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (2003-2005)

INSTITUTION GUIDE:SUBMITTED BY:Mr. S.SAHOO SHOKEEN SANDEEP

INSTITUTE OF MANAGEMENT TECHNOLOGY

(Approved by AICTE , Govt of India& Affiliated by M.D.University, Rohtak.) Tigaon Road, Near Sai Dham, Faridabad Tel:0129-2370185,3096395,2226137

In the present global world of competition there is a race of existence in which those who are having “Will” to come forward will succeed. Project is a bridge between theoretical and practical working, with this “Will” I have joined this project. I really wish to express my gratitude towards all those people who have enormously helpful in the preparation of summer training report on “Supply Chain Management”. I am especially grateful to my friends & relative who have provided me a valuable courage to come out with this project.

I wish to express my sincere gratitude to Mr. Mr. Deepak Jain (EXECUTIVE MANAGER) for their invaluable support provided in having the opportunity to complete my project.

I also express my sincere gratitude to Mr. V.K. JAIN (General Manager HR) for their indispensable support.

My understanding of this subject has been affected most significantly to my project guide Mr. S.Sahoo (H.O.D.) who provided me his expert advise,

inspiration & moral support inspite of his busy schedule and assignments. I am ever grateful to his kindhearted approach & encouragement, which helped me immensely in completion of this project work.

I am greatly indebted to Mr. Ravi Handa (Principal), for his kind hearted and beloved approach. His timely guidance, supervision & encouragement have helped me to get this golden opportunity.

I also pay my regards to Mr. Anup Sethi & Mrs. Manpreet Kaur who built confidence in me and provides me a guideline to complete my project reports.

I am also thankful to the M.D.University, Rohtak for providing this opportunity to pursue M.B.A. course.

SANDEEP SHOKEEN

This is meant to give them exposure to the practical aspects of the Business and the first hand information pertaining to the challenge ahead of them when they became full fledged manners. I was fortunate that one of the premier business houses in India. The project assigned to me was “SUPPLY CHAIN MANAGEMENT”. “Jain Group” provided me an opportunity to undergo this “Summer Training” at “Lakshmi Precision Screws limited” at Rohtak.A. . for a period of four to six weeks. This report is the culmination of six weeks of my work with the Marketing Department of LAKSHMI PRECISION SCREWS LIMITED.The student of M.B. are required to undergo a summer training at some Business enterprises after completing first year.

3. . 2. 4.SR. 13. 12. 7. NO. 10. 1. 6. 5. 11. 14. TITLE PREFACE ACKNOWLEDGEMENT COMPANY PROFILE PRODUCTION PROCESS OBJECTIVE SCOPE OF THE STUDY RESEARCH METHODOLOGY INTRODUCTION TO SCM SUPPLY CHAIN MANAGEMENT IN LPS FINDINGS LIMITATION CONCLUSION SUGGESTION BIBLIOGRAPHY APPENDIX PAGE NO. 8. 15. 9.

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India can be said as one of the pioneer in the world of textiles. The textiles industry in India occupies an eminent place in our national life. Alexandrian Merchants carried over an extensive trade in Indian textiles and spread the fashion for Indian modes in the east where Indian Prints are known to have supplied the market for many local styles and modes. In spinning and weaving no other country boasts of such a hoary past. Trades in Indian textiles have been known to exist from the earlier times. India’s superb craftsmanship and excellence in textile designing have been known all over the world. In the early centuries of Christian era. .

ISO. High tensile steel. Titanium Alloy.000 of fasteners in Stainless steel. 55 million with a steady growth. We became operational in 1998 with specialization in Industrial Assembly Technology and within a short span we are now a 45 member family serving to our customers all over India with a sales over Rs. NFE.) and Multifunctional fasteners like. JIS. LTD. . Our range includes standard items (as per DIN. Apart from these we also develop and supply items as per customer specifications. EcoSyn.. Incorporated in November 97. Copper. and other National & International Std. EcoFix and many more. We have a range of more than 50. Switzerland. Aluminum. Thread Forming screws. this joint venture has been christened as LPS BOSSARD PVT. Self drilling screw. Brass. Inconel and Plastics.COMPANY PROFILE Company at a Glance We take this opportunity to introduce ourselves as a joint venture between M/s Lakashmi Precision Screws Ltd. MS. Thread cutting. Rohtak and Bossard AG.

OUTLINE 1) Name of the Company : LAKSHMI PRECISION SCREWS LTD. INR (March’ 2001) ($19 Million) 7) Annual Sales : 834 Mill. Recoil Fasteners Australia for Thread Damage Repair Kits. to cater to the needs of customers for C items.124 001 Haryana (India) 4) Chairman & Managing Director: 5) Total Assets : Lalit Kumar Jain 879 Mill. 2) Founded on 3) Head Office & Factory : : March 10. 1972 46/1. for distribution of Cable ties and Wiring Accessories. Inserts and Insertion Tools. Fairchild Fasteners for Tension Latches.We have joined hands with many world repute companies like Panduit Corp. ¼ Turn Fasteners. Mile Stone Rohtak . Push Button Fasteners. INR (March’ 2001) ($18 Million) 8) Employees Productio Office QC R&D Others Total .

000 .000 23.n 372 55% 9. Factory 90 14% 48 8% 60 10% 54 9% 624 100% (Unit : m x m) SECTION w.f.e. LAND BUILDING PLANT I 1972-73 19.000 PLANTS PLANT II 1993-94 44.000 TOTAL 63.000 39.000 16.

R P Khanna /P Dhawan Development/Engineering Sh.S.L. Dharmendra Bhandari . R K Routh /Sh.P. J K Sahoo Production. A K Jain /Sh. Sanjeev K Sharma /Sh. Planning & Control Sh. D K Jain Sh. M T Parmar /Sh. H P Lakhera Sh. R K Arora Quality / Quality Management Services Sh. L K JAIN ICICI – Nominee Sh. J Pandey Sh. V K Jain Sh. AT A GLANCE: BOARD OF DIRECTORS Chairman & Managing Director Vice Chairman & Managing Director Director – Purchase President General Manager (Marketing) General Manager (Sales) Manufacturing Sh.V Velayutham Sh. R C Garg /Sh. M G Agarwal Sh. R Gururajan Information Technology Sh.

MILE STONE. H. HARYANA (INDIA) Tel. Bankers Canara Bank.P.com. Gupta & Co. ROHTAK-124 001.com . HEAD OFFICE & FACTORY 46/1.: +91-1262-48297/49922 Email. HISSAR ROAD. mktg@lpsboi.: +91-1262-48288/48289/49920/49921 Fax.Company Secretary & DGM (Finance) Auditors Chartered Accountants Delhi.S Chugh N.: corp_aff@lpsboi. Rohtak Sh.G.

: lpsbgl@bgl.net.vsnl.400 021 (India) Phone : +91-22-2821918/2843864/2325061/2325062 Fax : +91-22-2834492 Email : Screws@bom2.in MUMBAI OFFICE 153-A.vsnl.303. Phone :+91-33-2210754 Fax : +91-33-4739087/ 2107269 / 2210754 Email: lpsl@cal3.vsnl. Calcutta-700 001. Mittal Tower..net. 3rd floor. M G Road Bangalore .in . Canning Street. Mittal Tower. Room No. 3rd floor. Nariman Point Bombay .560 001 (India) Phone : +91-80-5588587 Fax : +91-80-5597232 Email. in CALCUTTA OFFICE 8.BANGALORE OFFICE 305 A.net.

in LPS-RECOIL DIVISION GH-13/889. we are headquartered in Rohtak. Jhandewalan Extn.net. New Delhi – 110 055 (India) Phone : +91-11-3527642/3532135 Fax : +91-11-7532138 Email: lpsdel@ndb. In our main operational activity Fastening Technology.net. Paschim Vihar.vsnl.in Aim We aim at providing the latest in Fastening Technology and C parts management to our customers in India. New Delhi Phone :+91-11-5280213/ 5282179/ 5575463 Telefax: +91-11-5575463/ 5280213 E-mail: lkj@bol. Haryana and have formed regional offices at . New Cycle Market.NEW DELHI OFFICE 146.

Chennai. Kolkatta & Mumbai. . In an effort to be closer to our customers we also have offices in Ahmedabad. Banglore & Pune. Hyderabad.New Delhi.

.WE BELIEVE THAT THE QUALITY IS A LONG TERM INVESTMENT AND ENSURES OPTIMUM PROFIT AND PRESTIGE IN THE MARKET .TO MAKE CONSUMERS DELIGHTED BY PROVIDING QUALITY FASTENERS TO THEM AT THE MOST COMPETITIVE PRICES. **************** BE MARKET LEADERS IN OUR CORE BUSINESS ***************** ACHIEVE AND SUSTAIN GLOBAL COMPETITIVENESS IN ALL OUR BUSINESS ********************* BE THE PREFERRED SUPPLIER BY PROVIDING OUR CUSTOMERS PRODUCTS AND SERVICES THAT ALWAYS MEET OR EXCEED THEIR REQUIREMENTS.

COMPANY ORGANISATION Board of Directors Chairman & Managing Director Quality Management Corporate Strategy Marketing R&D Plannin g Productio n QA General D E V E L O P M E N T S A L E S D E V E L O P M E N T L A B O R A T O R Y C E N T R A L I P R O D U C T G O N P L A N N I N P L A N T I P L A N T II P U R C H A S E F I N A N C E H R D E D P .

Bossard has its global presence with regional business units in Europe. United States and Asia/Pacific and operations in over 15 countries having a turnover of over US$ 350 million. . Bossard is the first company in this sector to get an ISO 9001/9002 & 14001 certification (since 1986). LPS is one of the leading manufacturers and suppliers of high tensile fasteners such as Bolts. Nuts and similar parts for Automobile and other Industrial Sectors and has acquired the state of art technology. LPS is Accredited in Mechanical and Chemical Testing since 1995 by A2LA (American Association for Laboratory Accreditation. Switzerland and today is managed by the seventh generation of the Bossard Family with roughly 1100 employees. USA) and NABL (National Accreditation Board for Calibration & Testing Laboratories) and is ISO certified since 1996. Founded in March 1972.A WORD ABOUT OUR PARENT COMPANIES LPS Ltd. Screws. Bossard AG Bossard a leading logistic-oriented group for fastening technology was founded in 1831 in Zug. LPS also got QS 9000 in March 2000.

our vision includes clear views on flexibility as well as transparency with regards to value added. both of which we consider as important as our market targets. This includes assuring an appropriate level of growth in order to remain competitive as well as making targeted acquisitions. . The latter. which are also of considerable interest to our fastening technology customers. Furthermore. for example might be projects in the C part management sector. We see ourselves as an international logistic-oriented group for Fastening Technology and C parts management.Vision “We want to be the best and most successful Fastener House in India” Our Current business policy is in line with our principals based on an overall medium-term entrepreneurial vision. We have access to worldwide procurement and engineering know-how. Top priority in planning company development is given to strengthening established activities and developing new markets.

” In order to meet above policy we have clear objectives that “to increase confidence of customer by providing quality products on time” and “to reduce cost of customer product by providing technical and logistics support” “We are a leading OEM supplier offering global solutions for local requirements.Quality Policy “We at LPS Bossard will provide reliable quality products economically on time to the total customer satisfaction.” .

Quality All our stakeholders can rest assured that we invariably deliver what we promise.Guiding Principles for our activities Customer Focus We focus on the real needs of our customers. offer the best value. That’s why we develop custom-tailored products and services for every customer. convenience and cost-effectiveness. That’s why we cannot be inexpensive but. That’s why we can offer our customers security. We understand their problems and can solve them. Value Added Not all products and services add value – but they all lead to costs. instead. Key for the customer is the perceived value. .

This allows industrial enterprises it exploit rationalization potential in fastening technology both within and outside their companies. . “Our employees are our greatest assets”. Independence We have always put our trust in creativity.People We rely on highly motivated employees. The Yardstick for Activities “Engineering and logistics lead to a cost saving of percent and more” We have developed a three-fold approach to adding customer value. That’s why we are having teams to coordinate the activities. Along the entire procurement and value added chain whole cost pools can be turned into a competitive advantage. empower them to contribute to the group’s success and let them participate in it. innovation and unconventional thinking. Customer benefit is our yardstick.

Communication We are aware of the availability needs of our customers and know how to develop and support inter-company procurement systems. Core Competencies Main Service We are at home in the market for fastening elements worldwide and know how and where to manufacture and develop such elements. Engineering We are familiar with customer-specific problems in fastening technology and know how to solve them.  PRODUCT AND SERVICE PACKAGE . Logistics We are accustomed to customer-specific supply requirements and have the necessary systems and solutions in place.

enhancing the quality of the fastening or providing greater protection against corrosion or loosening. Functional products must be available in sufficient number and at an acceptable price. development and procurement network with several linked warehouse locations. Product Support In fastening technology. That is why we offer product support to help our customers manufacture a better product and to lower production costs. Lower production costs can be achieved by reducing the number of .000 items. comprises 50. Providing reliable quality products on time is our main or basic service. To this end we maintains a worldwide manufacturing. available in catalogue form. 97 percent are always available from stock. This engineering service can improve the product through identifying the most suitable materials. there is more to fully exploiting the rationalization potential than global product availability. Its product documentation.“Your Cost Saving potential lies with us” Basic Product As our basic product we offer a variety of fasteners to the diversified needs of market.

the greater their contribution will be. but only for 5 percent of the value of the products. Business Support Our major third strength is business support. We have developed. Currently we can offer our Two-Bin. Kanban Barcode. Such logistic systems have considerable savings potential because only some 15 percent of the total in-place cost are related to the actual fastening element. Kanban Card. Edifact and Smart Bin systems. warehousing and assembly by 30 percent or more. The earlier our specialists are involved in the construction. proven logistic systems that can reduce costs for procurement.different parts through using multifunctional parts and through introducing simpler assembly techniques. Numerous companies are not yet using saving potential. and repeatedly implemented. . Our starting point here is the high availability of our products and the assumption that C parts accounts for 50 percent of the total procurement costs.

and will always achieve. . The single source competencies acquired through our three service levels make us an experienced and reliable supplier of comprehensive C part management.Parts management There is a clear trend worldwide towards procuring C parts from a single source and towards overall C part management.  Strength Globally the group has a specialization in handling the needs of many industries like: Air Conditioner Home Appliances Aero Space Wind Mill Medical Equipment Instrumentation Locomotive Automobile Energy Meter Electrical & Electronics Accredited worldwide Within the first year of our operations we have been certified as an ISO 9002 certified by UL USA. We have been rated as best suppliers by many of our customers and this is the biggest certificate we have. “We deliver what we promise”  Major customers Asea Brown Boveri Adtranz All BHEL All Bharat Electronics Ltd.

Amtrex Hitachi MICO Enercon India Behr India Crompton ISRO Greaves VSSC DRDL DLW TATA Dhananjay ltd. Tecumesh Secure Meters GE BE Wipro GE SIEMENS Alstom “We believe in long lasting business relationship”  Commitment “We sincerely hope that we can forge a mutually beneficial and long-lasting relationship and that LPS Bossard can serve you as a single source for your entire diverse fastener needs.” .

Hex Head Socket Items AUTO FASTNERS INDUSTRIAL FASTNERS SOCKET ITEMS • • • • • Socket head cap screw Counter sunk Socket sunk screw (SSS) Button head screw D-Head Hex Head Screw (Full threaded) Hex-Head Bolt (Half threaded) Nut . 1. INDUSTRIAL FASTNERS 2.PRODUCTION PROCESS The Company undertakes the manufacturing of various fasteners these fasteners can be divided into two categories.

All these are being manufactured under a standard series i.e Metric series • • • • • BSW Standard BSF Standard UNC Standard UNF Standard DIN Standard AUTO FASTNERS • • • • • WHB Shaft Bolts Flange Buttons Wheel Nut Ring Nut. Before we go for the Production Process various pre production process decisions are to be taken • • • • Decision of raw material Design Preparation of Die Die is sent to the Tool Room for Inspection .

PPC will be informed Rolling Quality Inspection Finishing Lab Inspection Final Inspection After final inspection. Inspection of 1 hour by inspector Again setting. Setting of Raw Material Selection of Piece required.• • • • • • • • • • • • • • • Send to Store Room Issue of Raw Material by a PPC according to Size.e which is shown below: .K than goes for manufacturing. if O. If O. Repeated inspection Production operator will issue an quality control slip according to ISO.K. the raw material is send to the manufacturing place and according to the order the production process goes on i.

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MAIN MARKETS INTERNATIONAL (COUNTRIES) • Australia • Germany • Holland • Hong Kong • Japan • Singapore • South Africa • South Korea • Sweden • Switzerland • United Kingdom • United States of America .

GROWTH IN PRODUCTION & SALES YEAR/ SECTION 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 PRODUCTI ON. MILLIONS INR 309 404 552 735 696 684 706 816 834 . 3016 TONNES PER YEAR 3556 4897 6529 6385 5753 5607 6656 6165 SALES.

Axle Bolts/Pin. Switch Body. Ball Joints. Engine Mounting. Wheel Hub Bolts Nuts & Nuts.) Pins for Hydraulics & Pumps Bolt for Refrigeration Compressor Friction Grip Bolts & Nuts for Construction Industry Socket Head Cap Screw Low Head Socket Bolt Shoulder Bolt Button Head CSK Standard Set Screws Fasteners Hex Wrench Keys Hex Head Bolt Dovel Pin Nuts Friction Grip Bolts Track Shoe Bolts Stainless Steel Hex Head Stainless Steel Socket Head Cap Screws FASTENERS  HISTORY 1994 Received Employment Generation Award from . Rocker Arm. Cylinder Studs. Gear Blanks. Cylinder Head. Counter Weights.) Automobile s Washer Assemblies Bolts The other critical & safety parts bolts Construction parts (Friction Grip) Bolts & Nuts for Agriculture Industry Bolts & Nuts for Industrial Machinery Cold formed parts for Automobile (Piston Pins. MAIN PRODUCTS Division Products Precision Cold Forming parts for Automobile Engine Parts ( Con Rod.) Bolts & Chasis Parts (Wheel Bolts. Collar for Bolt. Shock Absorber Mounting Pins etc. Flanged Bolts. Main Bearing etc. Rocket Shaft etc.

2000 2001 QS 9000 Certification. .ISO-14001 Certification.Joint Venture with Bossard AG-Switzerland. 1996 Certified to ISO-9002. –USA.Self Certification status from TELCO.Technical Tie-up with Sunil Machinery Corporation. . Mechanical & Chemical Testing by National Accreditation Board for Calibration & Testing Laboratories (NABL). 1995 Accredited in Mechanical & Chemical Testing by A2LA.Director of Industries. ISO/TS-16949 Certification. USA to meet Fastener Quality Act of US. Government of India. Korea. 1998 Installed Bolt Maker (AF 2525) to add production capacity to 12200 MT. Haryana State. 1995 Accredited in Mechanical Measurement. 2002 Implemented ERP–SAP R/3.Licenced Manufacturers of TORX Screw from Camcar Co. . . . 1999.

2002 Golden Peacock Award. .

2) Founded on 3) Head Office & Factory : : March 10. INR (March’ 2001) ($19 Million) 7) Annual Sales : 834 Mill.124 001 Haryana (India) 4) Chairman & Managing Director: Lalit Kumar Jain 5) Total Assets : 879 Mill. INR (March’ 2001) ($18 Million) . Mile Stone Rohtak . 1972 46/1. OUTLINE 1) Name of the Company : LAKSHMI PRECISION SCREWS LTD.

000 39.000 TOTAL 63.8) Employees Productio n 372 55% 9.000 PLANTS PLANT II 1993-94 44. Factory Office 90 14% QC 48 8% R&D 60 10% Others 54 9% Total 624 100% (Unit : m x m) SECTION w.000 .f.000 23.000 16.e. LAND BUILDING PLANT I 1972-73 19.

2. Certificates 1. 3. 06. 5. 4. A2LA NABL ISO 9002 QS 9000 ISO / TS 16949 ISO14001 .

 To what extend the employees and the mgt.OBJECTIVES There is always an objective exit behind any action or event. To identify what new schemes has come up with for the betterment of SCM.  To suggest the changes to be made in SCM for further improvement. The objective of my study is to carry an indepth study of Supply Chain Management in Lakshmi Precision Screws Ltd and it also determine that all these amenities are actually put in practice in the organization.  To understand the views of previous people regarding SCM. . without aims you can’t know for what you are striving. Together workout the problems. Thus this study cover’s the following area : To understand implementation of Supply Chain Management in LPS.  To identify the Problem Areas of SCM.

transformation of there finished products to customers. removal of Bar-Code system and mgt. Since Supply Chain means a network of facilities and distribution options that performs the functions of procurement of materials.SCOPE OF THE STUDY Along with the objective. the scope of study is also to be considered upon. Since my study is related to the supply chain mgt. Is put in an hierarchical order. Which makes the study more meaningful and relevant. As we know that Supply Chain is a major part of the company therefore LPS has made every effort to encourage and motivate its employees to perform better in their respective field. therefore my scope is limited to the Supply Chain only. which eventually reduced the inventory cost. For this purpose it has implemented various schemes. In LPS. .

prestigious Jain group is identified where highly qualified engineers. 3. Non availability of the library facility is the main problem faced by me. While preparing this report I had to face certain problems: 1. Due to the busy schedule. . 5. No survey was carried out.LIMITATIONS For the purpose of preparation of this project report.e. library. 2. the employers were not ready to give much more time to my project. It becomes hard to collect data due to lack of information source i. In order to get relevant information from my guide I had to spend several are in front of his office. 4. Most of the information collected was biased. managers and talented workmen are engaged. Internet etc.

Primary Source  Discuss with the marketing department officers about the supply chain management. .SEARCHING METHODOLOGY In preparation of my project report the primary source as well as the secondary source did the major portion of my data collection.  Discuss with the HR Manager.  Some data are collected from various magazine and newspapers.  34th Annual Report 2002-2003 of LPS was also considered. Secondary Source  In preparing the report some relevant books and authors views also considered.  Discuss with the employees in the production department.

This was an alarming level and when worked upon. it really gave a substantial results. 5. The Management does not work in hierarchical position. Industry avg. 3. 9. 10 lacs was not working to the expectations. Strategies adopted to improve inventory statistics are not fully implemented. 4. of inventory turns is between 120-130 whereas LPS inventory turns ratio was found to be between 4 to 6 which is drastically low.FINDINGS The findings of my study is : 1. 6. 7. Inventory conditions at LPS are really critical need an immediate concern. Another drawback of Supply Chain Management is that the process is carried out for those items which contributed most to 80% to total sales whereas the other were given less attention. 8. . 2. 10. which inspite of investment of Rs. Inventory carrying cost is high in the company. Company has to strengthen already existing Supplier base. Arrival of Bar-Code system. This inventory conditions at LPS – Bossard were found to be at very high level. Company carries a large amount of inventory which can be very disastrous.

There is many more finding of the study but I restricted my finding of the study to these only. A big backlog of items is lying unlabelled. Performance of the Sales Team is not satisfactory.11. . 14. Mode of packing is not clear at the receipt point and this causes doubling of packing activities. 13. 12.

It depends upon both Direct Sales to Customers Sale through dealers.  To Strengthen the already existing supplier base.  Mode of packing is not clear at the receipt point and this causes doubling of packing activities.  Inventory Carrying cost should be maintained.  Carrying large amount of inventory can be very disastrous for Company.SUGGESTIONS AND RECOMMENDATIONS Suggestions and Recommendations is an important part of my Study without it my study would be incomplete. 10 lac was not working to the expectations of the company.  Ordering cost and carrying cost should be minimise.  To Determine the appropriate forecasting technique.  LPS basic Supply Chain Model does not lies on a particular platform.  To Remove the Bar-Code systems which despite an investment of Rs.  Sales team need to change their working style and update the data regularly. It is suggested that the Company should look into the following aspects for further improvement in their Supply Chain Management. .

 Lack of proper Supply Chain has stopped LPS for substantial results. Inventory turns at LPS remain between 4 to 6. .

There is an excellent Research and development and design department. I can with my little association with LPS can say that LPS is a model to other organizations in many ways:- .CONCLUSION It is a great pleasure that I could undergo a practical training in a reputed company where as per the modern management all types of procedures are adopted & monitored. It is clearly stated that if an employees happy then more productivity can be attained. Of Course. The Company as created an excellent atmosphere to work with and is offering handsome salary and other allowances to its employees. If loss of man-days are saved it will be better for the country. All of them are in one family called LPS family and play a vital role to achieve the decided aim set out by the organizations. The significant point. is that the workers are given adequate motivation and encouragements to have higher productivity in the organizations and there is not much difference between non-executive and executive. which has come to my notice. In view of this the performance of the organizations during the past years was an upward trend and many inventions then by engineers are imparted by the Industrial organizations/Telecommunication/space-organizations.

transformation of these materials into intermediate and finished products. • Retaining the manpower • Communication from top to bottom & bottom to top. A Supply Chain is a network of facilities and distribution options that performs the functions of procurement of materials. . Supply chain exist in both service and manufacturing organizations. Thus this shows that SCM is the heart of the company hence it should be operated carefully under the following decisions SUPPLY CHAIN DECISIONS LOCATION DECESIONS PRODUCT DECISIONS INVENTORY DECISIONS TRANSPORATION DECISIONS Thus supply chain management plays an important part in the success of the company. and the distribution of these finished products to customers.• The top-level management use to monitor all the activities is periodically and suggest further improvement in SCM. although the complexity of the chain may vary greatly from industry to industry and firm to firm.

and the purchasing organizations along the supply chain operated independently. Realistic supply chains have multiple and products with shared components. planning. and ultimately.Supply Chain Management A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials. where raw material is procured form vendors. although the complexity of the chain may very greatly from industry to industry and firm to firm. Traditionally. customers. and the distribution of these finished products to customers. marketing. The flow of materials is not always along an arbores cent network. distribution. Below is an example of a very simple supply chain for a single product. transformation of these materials into intermediate and finished products. and the bill of materials for the end items may be both deep and large. These organizations have their own objectives and these are often . and then transported to distribution centers. Supply chains exist in both service and manufacturing organizations. manufacturing. transformed into finished goods in a single step. various modes of transpiration may be considered. facilities and capacities.

but the entire team needs to make a coordinated effort to win the race. Clearly. there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved. Such a team is more competitive when each player knows how to be positioned for the hand-off. Supply chain management is typically viewed to lie between fully vertically integrated firms. Many manufacturing operations are designed to maximize throughout and lower costs with little consideration for the impact on inventory levels and distribution capabilities. where the entire material flow is owned by a single firm. . and those where each channel member operates independently. Cooper and Ellram (1993) compare supply chain management to a well balanced and well practiced relay team. Marketing’s objective of high customer service and maximum sales in dollars conflict with manufacturing and distribution goals.conflicting. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. Therefore coordination between the various players in the chain is key in its effective management. The relationships are the strongest between players who directly pass the baton. integrated plan for the organization – there were as many plans as businesses. The result of these factors is that there is not a single.

and there are both strategic and operational elements in each of these decision areas. As the term implies. and sourcing points is the natural first step in creating a supply chain. strategic decisions are made typically over a longer time horizon.Supply Chain Decisions We classify the decisions for supply chain management into two broad categories – strategic and operational. 3) inventory. On the other hand. Location Decisions The geographic placement of production facilities. and guide supply chain policies from a design perspective. and focus on activities over a day-to-day basis. 2) production. stocking points. The effort in these type of decisions is to effectively and efficiently manage the product flow in the “strategically” planned supply chain. There are four major decision areas in supply chain management: 1) location. The . These are closely linked to the corporate strategy (they sometimes {/it are} the corporate strategy). and 4) transportation (distribution). operational decisions are short term.

etc. Harrison and Trafton (1995) for a thorough discussion of these aspects. (See Arntzen. so are the possible paths by which the product flows through to the final customer. tariffs. costs and customer service levels of the firm. cost. they also have implications on an operational level. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets. production limitations. As before.) Although location decisions are primarily strategic. Another critical issue is the capacity of the manufacturing facilities . These decisions assume the existence of the facilities. distribution costs. number.location of facilities involves a commitment of resources to a long-term plan. and which plants to produce them in. and level of service. and location of these are determined. local content. These decisions should be determined by an optimization routine that considers production costs. Once the size. taxes. Brown. allocation of suppliers to plants. plants to DC’s.and this largely . Production Decisions The strategic decisions include what products to produce. and DC’s to customer markets. but determine the exact path(s) through which a product flows to and from these facilities. these decisions have a big impact on the revenues. duties and duty drawback. and will have a considerable impact or revenue.

Other considerations include workload balancing. scheduling production on machines. Operational decisions focus on detailed production scheduling. and equipment maintenance.depends the degree of vertical integration within the firm. and quality control measures at a production facility. These decisions include the construction of the master production schedules. .

. Since holding of inventories can cost anywhere between 20 to 40 percent of their value. It is strategic in the sense that top management sets goals. most researchers have approached the management of inventory from an operational perspective. since they are primary determinants of customer service levels. Inventories exist at every stage of the supply chain as either raw materials. semi-finished or finished goods. These levels are critical. their efficient management is critical in supply chain operations. These include deployment strategies (push versus pull). They can also be in-process between locations. at each stocking location.Inventory Decisions These refer to means by which inventories are managed. and setting safety stock levels. Their primary purpose to buffer against any uncertainty that might exist in the supply chain. However. control policies – the determination of the optimal levels of order quantities and reorder points.

Meanwhile shipping by sea or rail may be much cheaper. since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode.Transportation Decisions The mode choice aspect of these decisions are the more strategic ones. reliable. and warrant lesser safety stocks. While air shipments may be fast. but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainly associated with them. Importance of SCM: . and geographic location play vital roles in such decisions. operating efficiently makes good economic sense. routing and scheduling of equipment are key in effective management of the firm’s transport strategy. Therefore customer service levels. These are closely linked to the inventory decisions. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot). they are expensive. Since transportation is more than 30 percent of the logistics costs.

information and cash) and the success of a supply chain. Dell has experienced earnings growth of more than 65% per year. Since 1993. manufactures and suppliers as shown below. As distributors and retailers are bypassed. Dell was established in 1984. information and cash-within its supply chain. Supplier Supplier Supplier Manufacturer Customer Customer Customer . By 1988. Dell’s basic supply chain model is direct sales to customers. it had grown into a $12 billion company. In contrast Quaker Oats is an example in which the inability to design and manage flows appropriately in supply chain management led to failure of its acquisition of Snapple. the Dell supply chain has only three stagescustomers. Its earning growth is anticipated to be more than 30% per year over next five years. Dell’s stock price has also grown significantly since 1993.There is a close connection between the design and management of supply chain flows (product. Dell has attributed a significant part of its success to the way it manages flows-product. Dell computer is an example of a firm that has successfully used good supply chain practices to support its competitive strategy.

selling through retailers. the low level of inventory allows Dell to go the market with a PC with a chip faster than the competition. it has been able to finally segment them and analyze the needs and profitability of each segment. If prices suddenly drop. inventory turns is a key performance measure that Dell watches very closely. and delivers them to customers. on the phone or via the Internet. For some products. Close contact with its customers and an understanding of its customers needs allow Dell to develop better forecasts. Dell makes an active efforts to steer customers in real time. . The procedure allows Dell to save time and money associated with extra handling of monitors. such as monitors manufactured by Sony. Each computer chip carriers a date code to indicate how old a computer part is. On the operational side. toward PC configurations that can be built given the components available.Because Dell is in direct contract with it’s customers. Dell carries only 10 days’ worth of inventory. If Intel introduces a new chip. Dell has fewer inventories that lose value relative to its competitors. of computers from Dell’s Austin plant and monitors from Sony’s factory in Mexico. in contrast the companies. matches them by customer order. have been carrying in the vicinity of 80-100 days. The transport company simply picks up the appropriate no. Dell maintains no inventory. To further improve the match between supply and demand. as they did in early part of 1998.

Brazil. If a customer calls in with a problem. Ireland and Malaysia. thus helping suppliers to get a better idea of customer demand and better match their production schedules to that of dell.The success of Dell’s supply chain is facilitated by sophisticated information exchange. Dell’s low level of inventory also helps ensure that defects are not introduced into a large quantity of product. As there is no finished product in inventory. . Dell carries only hours of component inventory at its factory. Dell provides real time data to suppliers on the current state of demand. The company has production concentrated in five manufacturing centers: Austin. suppliers are able to replenish component inventories regularly. In some cases. supplier engineers are stationed right at the plant. the amount of defective merchandise produced is minimized. allowing Dell to maintain low level of component inventories. Because demand at each location is relatively large and stable. Dell has created customized web pages so that it’s major suppliers can view demand forecasts and other customer – sensitive information. production is stopped and design flaws are fixed in real time. China. When a new product is launched. Texas. Suppliers are able to access their components’ inventory levels at factory along with daily production requirements.

Once again. Quaker Oats.7 billion. with its acquisition of Snapple. By tracking and managing receivables and payables very closely. Quaker purchased Snapple at a cost of $1. it is able to collect cash from its customers. a coordinated flow of information and material minimizes the cost necessary to provide a high level of service. Snapple sold all natural drinks. To ensure a high quality of service. Clearly. dell coordinated the delivery of the parts the customer requires with the arrival of the service person. In December 1994. provides an example in which failure to design and manage supply chain flows led to financial failure. Dell’s supply chain design and appropriate management of product. This approach has positioned Dell very well within PC industry. At the time. information and cash flows play a key role in the company’s success.Dell also out sources service and support to third-party providers. the top selling brand in the sports drink segment in USA. Quaker owns Gatorade. Gatorade was very . Dell also manages its cash flows very effectively. on average five days before it has to pay its suppliers. the competitive battlefield is now focused on service delivery and supply chain efficiency.

. Quaker announced that it hoped to exploit synergies between two distribution systems to gain efficiencies. Gatorade was manufactured in plants owned by Quaker.strong in south and the southwest of the United States. The inability to achieve synergies between the two supply chains was a significant reason for the failure of Snapple at Quaker. about 20% of the purchase price. Just 28 months later. Over two years following its acquisition of Snapple. Quaker sold Snapple to Triarc Companies for $300 million. Quaker Oats was unable to gain much synergy between the two neither and may have hurt both. but the company was unable to remedy several problems that prevented it from achieving these synergies. while Snapple sol primarily through restaurants and independent retailers. while Snapple was strong in the northeast and on the west coast.

if worked sincerely. Supplier Base: Since management at the company aims to serve the customers. the supplier .SCM AT LPS – BOSSARD To implement SCM at LPS-Bossard thoroughly. When the industry average for inventory turns is around 125. the following three areas were identified where. investment and other resources. substantial results could be achieved. In today’s world no supplier carries such a high inventory. After a detailed look into company’s working processes and understanding the critically of each part of it. therefore few areas were required to be identified where SCM strategies can easily by worked upon and can really allow company to benefit out of it. These three areas are : Inventory: The inventory conditions at LPS-Bossard were found to be at a very high level. This was an alarming level and when worked upon. would require a great deal of time. it really gave substantial results. Inventory turns at LPSBossard remain between 4 to 6. who are highly quality conscious and are ready to pay a little extra too. So. which would be too much to finish in the given training period of 18 weeks.

what are different costs associated with them and how to reduce these costs while maintaining . 10 lakhs was not working to the expectations of the company. Operational Efficiency: To improve the operational efficiency of the entire chain would have been impossible to achieve in such a short duration. the first step to be taken was to strengthen the already existing supplier base. which despite an investment of Rs. of which about 75 are foreign suppliers. right now has a strong supplier base of around 265 suppliers. it becomes important to know that what are different types of inventory. Inventory: As it is quite popularly known and established. So. it was rather making them more cumbersome and difficult to implement. LPS-Bossard. Rather than making all the processes easier for the company. Here all the activities carried out in all the three areas are discussed in detail. so Bar Code system at LPS-Bossard was chosen for the same. that carrying large amount of inventory can be very disastrous for a supplier.base of the company automatically gains a lot importance in the whole supply chain.

minimum possible inventory. Inventory is spread throughout the supply chain from raw materials to work in process to finished goods that suppliers. where inventory is held in anticipation of future demands that can be satisfied by having the product ready and available when the customer wants it. Here below we discuss each and every aspect related to inventory in detail: Role of Inventory In this section we discuss the role inventory plays in the supply chain and how managers use inventory to rive supply chain performance. the location and quantity can move the supply . Another significant role inventory plays is it reduce cost by exploiting any economics of scale that may exist during both production and distribution. and retailers hold. If we think of the responsiveness spectrum as shown below. where it is economical to manufacture in large lots that are of then stored or future sales. Role in supply chain: Inventory exists in supply chain because of a mismatch between supply and demand. This mismatch is also intentional at a retail store. distributors. Inventory is a major source of cost in a supply chain. This mismatch is intentional at a steel manufacturer. and it has a huge impact on responsiveness. manufacturers.

the three can be related using Little’s law as follows: Responsiveness Spectrum Responsive Zone of Strategy Response Efficient Certain Implied Uncertain Uncertain . If inventory is represented by I. and throughput by R. In contrast. Material Flow Time is the time that elapses between the point at which material enters the supply chain to the point at which it exists. Another important area where inventory has a significant impact is throughput. a clothing supply chain with high inventory levels has a high level of responsiveness. flow time by T. a clothing supply chain with little inventory would be very unresponsive. Inventory also has a significant impact on the material flow time in a supply chain. depending on how little inventory existed in supply chain. A customer wanting a shirt would have to order it and wait several weeks or even months for it to be manufactured. since a customer can walk into store and walk out with the shirt he or she was looking for. For example.chain from one end of the spectrum to the other. the rate at which sales to end consumer occurs.

The logical conclusion here is that inventory and flow time are synonymous in a supply chain. we would reduce our flow time to five hours (300/60).For example. if the flow time of an auto assembly process is 10 hours and the throughput is 60 units an hours. If we were able to reduce inventory to 300 units while holding throughput constant. Role in the competitive strategy: Inventory plays a significant role in supply chain’s ability to support firm’s competitive strategy. If a firm’s competitive strategy requires a very high level of responsiveness by locating large amount of inventory close to customer. The latter . a company can also use inventory to make itself ore efficient by reducing inventory through centralized stocking. inventory and throughput must be in the same units. Note that in this relationship. Little’s law tells us that the inventory is 60X10 = 600 units. managers should use actions that lower the amount of inventory needed without increasing cost or reducing responsiveness. Conversely. Because reduced flow time can be a significant advantage in a supply chain.

The e-retailer could . With the increase in lot size. Components of inventory decisions: We now identify major inventory-related decisions that supply chain managers must make to create more responsive and more efficient supply chain effectively. Cycle Inventory Cycle Inventory is the average amount of inventory used to satisfy demand between receipt of supplier shipments.strategy would support a competitive strategy of being a low cot producer. or purchasing process. also comes an increase in carrying costs. The size of the cycle inventory is a result of the production or purchase of material in large lots. however. This retailer’s sales average around 10 truckloads of books a month. The cycle inventory decisions the retailer must take involve how much to order for replenishment and how often to place these orders. Companies produce or purchase in large lots to exploit economies of scale in production. consider an on-line book retailer. transportation. The trade-off implicit in the inventory driver is between the responsiveness that results from more inventory and the efficiency that results from less inventory. As an example of a cycle inventory decisions.

order 10 trucks once each month or it could order one truck in every three days. because demand is uncertain and may exceed expectations. only cycle inventory would be needed. However. If the world were perfectly predictable. Companies using seasonal inventory will build up inventory in periods of low demands for sale in periods of high demand when they will not have capacity to produce all that is demanded. it is held to counter uncertainty. Safety Inventory Safety inventory is held just in case demand exceeds expectation. companies hold safety inventory to satisfy an unexpectedly high demand. . Seasonal Inventory Seasonal Inventory is inventory that is built up to counter predictable variability in demand. The basic trade-off supply chain managers face is the cost of holding larger lots of inventory (when cycle inventory is high) versus the cost of ordering product frequently (when cycle inventory is low).

Therefore. a supply chain manager can use inventory as one of the drivers for reaching the level of responsiveness and efficiency that the competitive strategy targets. Efficiency The fundamental trade-off problem that managers face. However this choice comes at a cost. Overall Trade-off: Responsiveness Vs. Therefore. the basic trade-off supply chain managers face in determining how much seasonal inventory to built is the cost of carrying additional seasonal inventory versus cost of having a more flexible production rate. is between responsiveness and efficiency. . when making inventory decisions. Increasing Inventory will generally make the supply chain more responsive to the customer. as the added inventory decreases efficiency.

let us take a look at inventory statistics at LPS-Bossard. This also resulted in large amount of dead inventory. which directly leads to very high inventory carrying costs. the inventory turns ratio was found to be between 4-6. Mathematically. Inventory Turn = annualized cost of goods sold Cost of goods at any point of time To day the industry average of inventory turns is between 120-130. At LPS-Bossard. Age matrix of inventory: .Inventory at LPS-Bossard: Now that it has been established that inventory plays a critical role in any supply chain. Inventory turns: Inventory turns is defined as ratio of total cost of goods sold to the cost of goods being carried at any point of time. As compared to industry standards. The best companies in the world are able to maintain this high level of turns. This directly means that inventory levels at LPS-Bossard were very high. which was about 40% of total inventory. this ratio was drastically low.

33 14.32 0.03 7.14 Days4 50 2.8 9 1.90 7.19 2.08 16.62 0.53 1.27 0. Due to confidentially restraints.3 3 7.77 Days2 70 0.38 As is clear from the table itself.34 100.13 5.09 Days3 60 2.10 0.47 0.36 1.40 2.34 1. Age Matrix Warehou se who1 01A 01B 01C 01D 01G Total Values Valu e 30.10 5. Dispatch Matrix of Inventory: The matrix below shows the dispatch plan of inventory lying with various warehouses.43 0.67 0.13 0.40 0. the exact values are not given here.39 6.61 0.72 0.73 8.53 Days5 40 3.45 0.2 4 37.19 2.97 0.49 28.42 0.31 2.The matrix below shows the age of inventory at LPS-Bossard. It shows that what percentage of inventory will be dispatched in how many days. the inventory conditions at LPS-Bossard are really critical and need an immediate concern. .36 0.3 0 2.09 0.41 0.86 0.31 3.70 3.12 0.48 0.64 3.88 10.19 Days>5 40 18. for how long we will bear inventory carrying cost for different constituents of inventory. 00 Days Days1 90 80 1. in terms of percentage.3 2 6. or in other words.01 14.72 1. This means that this matrix shows that what amount (value) in terms of %age is lying from how many days.18 22.

which makes around 30% of total inventory.07 1. The total inventory at warehouse WH01.70 4. which apart from adding costs.64 12.03 0.43 2. but in case of LPS-Bossard.73 Warehouse s Who1 who1A who1B who1C who1D who1G Total values 90-120 days 120-150 days 0.60 >150 days 0. but could not be dispatched for reason or the other.45 37.73 46.10 0.17 0.50 0.80 This table shows that around 27% of inventory at LPS-Bossard will be carried for more than 2 months.06 7.80 13. also lowers inventory turns at LPS-Bossard.67 7. it rather carries a big chunk of whole inventory.43 7.00 Lost supply 3.62 6.58 15.20 0-30 days 30-60 days 0.71 1.54 0.13 0.66 7.01 10.66 0.94 Quantity Unallocated 29.90 0.19 0. Also.18 0. is dead inventory.Warehou ses who1 who1A who1B who1C who1D who1G Total values Total value 29.00 60-90 days 0.70 3.45 100.18 1.15 16.07 1. In an efficient supply chain. WH01 at LPS-Bossard is maintained for this purpose only.94 0.08 0.85 0. This is one major reason. Around 47% of inventory is such against which there are no orders and have no prospects for future sales either. . 12% of inventory which should have been dispatched previously.01 1.21 0.68 3.00 8.73 0.17 0.71 2.86 3.71 1. such a warehouse should not exist.15 0.80 6.00 0.

1. various strategies were identified. these strategies are discussed in detail. Understand and identify customer segments 5. to bring down carrying cost and other associated costs & to reduce obsolescence. Integrate demand planning and forecasting 3. The following basic. • Demand Forecasts: Forecasts of future demand are essential to a supply chain manager’s decision making and planning process. six-step approach to forecasting helps an organization perform effective forecasting. Understand the objective of forecasting 2. Establish performance and errors measure for the forecast . Identify major factors that influence the demand forecast 4. Here below.Strategies adopted to improve inventory statistics: In order to improve inventory turns. designed and implemented. Forecasting and the accompanying managerial decisions are extremely difficult when either supply of raw material or demand of finished good is highly variable. Determine the appropriate forecasting technique 6.

which contributed most to 80% of total sales in standard category.As the time was less and no other data other historical sales data was available. Then purchases were planned for these items. carrying out the process for all of them would have been too cumbersome. the process was carried out for those items. These methods are most appropriate when environmental situation is stable and the basic demand pattern does not vary significantly from one year to another. These methods use historical demand to make forecasts. the Time Series Forecasting methods were used. Therefore.000 special and standard products. They are based on the assumption that past demand history is a good indicator of future demand. for this activity. Cost Total Cost Holding Cost . so that ordering cost and carrying cost together result into minimum possible cost. Because LPS-Bossard offers a range of over 75.

and the probability that they can change their demand. All the sales teams were asked to ask their K and top 5 A customers to give their future demands. Now the demands for these individual customers were known. for at least one year. . along with the probability of these demands getting converted into business. A. the re-order levels were defined keeping in compliance with the diagram above. due to which purchases could be planned for integrated demand of all customers. Most of these customers are consistent with the volume and products. C and D types depending upon the volume of business they provide to the company.Order Cost Material Cost • Re-order Levels: The company has divided all it’s customers into K. Knowing these future projections. B. plan purchases efficiently and well in time to avoid any delays in delivery. they order every year. This process was carried out to prevent overbuying of material. All sales teams discussed the same with their target customers in detail. which can sometimes lead to cancellation of orders.

it is planned that this window will be narrowed gradually. This activity is being carried out strictly at warehouse now and in future. being used at LPS-Bossard. which is a part of ERP system SCALA.30 days window: A +/. Also. This was resulting in adding to our carrying costs.30 days from that day. due to not being used for long. • Purchase Order Proposal: Purchase order proposal is actually a software. would want inventory to reach at warehouse of LPS-Bossard as soon as possible.30 days window was established at the receipt area of warehouse. which helps or facilitates a purchaser to plan his purchases and raise purchase orders.• +/.5 days. This means that people at warehouse were strictly instructed to not to receive any material on any particular day. ultimately reaching to a limit of +/. which increased rejection rates. . whose dispatch date does not lie with in the rage of +/. This is a module. material used to get deteriorated in quality. This step was taken as many suppliers who would produce before schedules given to them.

it will automatically calculated quantity remaining in the warehouse for the items demanded in that particular order. • Clearance of free stock: All the items against which there were no orders and were lying in warehouse for more than one month.. the quantities required to be purchased along with the schedule of purchase depending upon supplier lead times and minimum order quantities. this activity has not been completed and is still in the process. Also they could not see value addition in using this software. these weaknesses were removed and the system made ready to work. Then with the help of IT and Purchase deptt. The processes of this module of the ERP software were studied and observed and the weaknesses identified. This highly efficient system was lying unused as the purchase deptt. which are available in SCALA database. These items were . Due to shortage of time and requirement of repeated testing and experimentation. found it unfriendly while using. were identified.Whenever any sales team will enter any order in to the system.

This system . cost saving. • Operational Efficiency (Bar Code System): Merely buying an IT solution and implementing it. and an offer was made to them to buy these items at discounted price. LPS-Bossard installed a bar code system around 10 months ago to make operations at warehouse more efficient. This system. this makes around 30% of total inventory. For this. without actually knowing its powers. Rather than making system more efficient and fast. due to improper installation and lack of communication. Ignorance in this case may not be a bliss. where they can be sold for heavy discounts.termed as Free Stock or Dead Inventory. The customers for whom these items were bought were identified. liquidating a big part of non-performing assets for LPs-Bossard. error free and fast. At LPS-Bossard. a Bar Code system was bought from Bar Code India. For all the items that could not be sold this way are on their way to dealer market. does not really help much. requirements and advantages. but it can certainly can be a pain. turned out to be a painful activity for people in warehouse. it rather degraded the whole system.

product. Suggested Solutions The responsibility lies on sales team. The changes are required to be all the made in label design. Problems Encountered 1. Customer ID is not provided by sales in customer master. Customers like GE medical and Enercon have different or multiple Ids for same when they need it for different 3. Label space is not sufficient for adding information there. 2. Anup. All the problems are listed below along with the suggested solutions and latest status of each. . Ashwani and Mr. The scope of my study was only to identify problems and suggest solutions as implementing the suggested solutions need managerial involvement. They are required allocation to update the customer master Problem has been resolved by Mr. which could not happen. to accommodate all information within same space. which is required for of items available. The following were the problems identified along with their solutions suggested. that by making changes in the programe. Number of these have already been solved and rest others are in process. as Mr.was to make the receipt and dispatch activities simpler. Anup provided space for lines.

Sales teams need to change their working style and update the data regularly. Sales team needs to work properly. Time taken by present printers is about 8-9 seconds per label. ERP system SCALA takes only location of any item and if due is placed elsewhere. This is highly time consuming. is required in case of DRDL. A file needs to be received at handheld scanning at the time of receipt time taken to receive Picking list is too long. whereas old method can print 100 labels/60 sec. because and dispatched. IT deptt. This prevents handheld reading the labels and the The printer needs to be replaced. this file is long and even the server is off most of the time. consequent processes are interrupted. 6. IR no. 9. Anup is required to make changes in the software for the bar code system. . Mr.4. Sales team will send picking even when materials are not available. the item system. which is not available in WHMS right now 5. labels printing is very sensitive and errors. The process for that has already been initiated. 7. A place free of dust and other causes particles needs to be deployed device fro for printing activities. the location is not updated in SCALA and people in picking and quality are not able to locate this location. is required to make predefined changes in software of Bar Code to shortage. 8. which device for is received at handheld. The data is not updated properly.

10. Mode of packing is not clear at the point and this causes doubling of packing activities. 11. Correct location of picking is not 12. Sales team is not updating Invoice information in WHMS. This creates a problem with picking list. Sales team needs to be instructed for taking care of it. 13. A big backlog of items is lying unlabelled. 14. The quantity required for any order

Sales team need to update data. receipt

Changes to be made in software Sales Team is required to update data.

Labelling to be done at dispatch, as required. Some big changes need to be does not

match with the quantity available made in software. Mr. Hamir for that product. This brings in problems in quantities in case of Bar Code has been asked to take proper allocation of care of the same.

shortage and collection of quantities. 15. Handheld connectivity with server IT deptt. will check all the connections.

Supplier Development:

Backward integration supply chain is as crucial to its operations as much is forward integration. For a company, to grow, having a strong customer base cannot be achieved until and unless their demands are not met. To meet their demands, company needs to produce better quality and more quantity, which in turn needs raw material. For raw material, any organization has to depend upon its suppliers.

So, for any organization to proper, it should have a very strong supplier base along with other things. This requirement becomes even more critical, when a company is a distribution company and not a manufacturer, because, in former case, the organization would have atleast some control over the production processes, but in latter case, it has no such control.

The following steps were identified and followed to strengthen the already existing supplier base. i) Asked Peterway, purchase manager, Bossard-Switzerland. For

quotations for certain items, which were consolidated demands for entire Bossard group little success from Pooja fasteners, Faridabad

ii) Resourcing for items that constituted 80% of total sales in

standards category. (Frequency – 6 month) identified alternate potential suppliers very good prices from Ashwin industries, can give about 40%

reduction for his particular items, asked him for samples. iii) enquiries from rest of the suppliers in process Alternate sourcing for items bought from ZUG and France.

1.

A Handbook of Supply Chain Optimization: An approach to SCOR model By: Rosenbaum

2.

Supply Chain Management: Strategy, Planning and Operation By: Peter Meindi and Sunil Chopra

3.

Research Methodology By: C.R. Kothari

4.

Internet Sites:

www.scm.com www.scmonline.com

Name Of Supplier.S b.K 6.Which company is product prefer.P.Qualification Of Supplier. 8.QUESTIONNAIRE 1.Any suggestions. L. 7. 2.Is discount given to you is Ok.Are you satisfies from company’s terms & condition.A. 5.Micron c.Age Of Supplier. . Surya d. 3.Are you satisfies from service of company. 9. 4. 10.In which product you deal.With Which company you Deal a.

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