Acknowledgement My Training Experience at Parikh Enterprises, Micropark Logistics Pvt. Ltd. has been truly a fulfilling and rewarding one. I would like to thank Mr. Hemang Parikh & Mr. Hitesh Parikh, Director of Micropark Logistics Pvt. Ltd. Nagpur for allowing me to work with Parikh Enterprises. The successful completion of this project work gives me an opportunity to thank and extend my sincere gratitude to Mr. Avinash Meshram and Mr. Fransis at Parikh Enterprises, Micropark Logistics Pvt. Ltd. who has helped me in giving his suggestions and having shared his experience. We immensely indebted to Mr. Lalit Khullar, Director, faculty of Tirpude Institute of Management Education, TMU, Nagpur for giving us an opportunity to carry out this project work. 1
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Acknowledgement
My Training Experience at Parikh Enterprises, Micropark Logistics Pvt. Ltd.
has been truly a fulfilling and rewarding one. I would like to thank Mr.
Hemang Parikh & Mr. Hitesh Parikh, Director of Micropark Logistics Pvt.
Ltd. Nagpur for allowing me to work with Parikh Enterprises.
The successful completion of this project work gives me an opportunity to
thank and extend my sincere gratitude to Mr. Avinash Meshram and Mr.
Fransis at Parikh Enterprises, Micropark Logistics Pvt. Ltd. who has helped
me in giving his suggestions and having shared his experience.
We immensely indebted to Mr. Lalit Khullar, Director, faculty of Tirpude
Institute of Management Education, TMU, Nagpur for giving us an
opportunity to carry out this project work.
Last but not the least I would like to thank my family and friends for their
support at every step of my life.
Amol Krushnarao Talekar
MBA, TIME, TMU
1
College Certificate
This is to certify that Mr. Amol Talekar is a bonafide student of this
institute and has successfully completed his project entitled “ Micropark
Logostics Private Limited” for partial fulfillment of course MBA
(Marketing) from Tirpude Institute of Management Education (TMU),
Nagpur.
Lalit Khullar Prof. Shraddha Shende
Director, Internal Guide
TIME, (TMU) TIME, (TMU)
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Company Certificate
This is to certify that Mr. Amol K. Talekar student of Master of Business
Administration from Tirpude Institute of Management Education,
Nagpur has satisfactorily completed his project work entitled Supply Chain
Management, in Micropark Logistics Pvt. Ltd. Nagpur in Administrative
Department of Ranbaxy from 20th May,2009 to 23rd July, 2009.
Authorized Signature
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Executive Summary
Micropark Logistics Pvt. Ltd is one of the leading Logistical Company in
India focused on Distribution & Warehousing of Pharmacitical, Cellular
products, etc.
The project entitled “Supply Chain Management in Micropark Logistic Pvt.
Ltd. Nagpur” was carried out to understand the logistical operational
functions & operational areas of supply chain management. Administrative
working like taking orders from the parties or clients , billing etc by using
the SAP software. Also claiming of the products is done in case the product
gets damaged, broken or gets expired or is out of date. Billing of the product
is done on the basis of manufacturing date of the product and the production
of the product is done batchwise.
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Table of content
Sr.No Particulars Page No
1. Introduction 6
2. Review of Literature 15
3. Introduction to company 16
4. Introduction to topic 26
5. Research Methodology 30
6. References 35
7. Conclusions 36
8 Suggestions 37
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Chapter 1
Introduction
6
Introduction to Supply Chain Management :-
Supply chain management (SCM) oversees and optimizes the processes of
acquiring inputs from suppliers, converting those inputs into a finished
product, and delivering those products—or outputs—to customers. SCM is
an umbrella term that refers to a variety of approaches for the management
of natural and human resources from the supplier to the manufacturer or
service provider to the consumer and back . This includes the identification
and creation of new opportunities for products and services in cooperation
with upstream and downstream partners, and the involvement of internal as
well as external stakeholders in decision making on supply chain matters.
Traditionally, a supply chain is:
A network of companies that exchange resources such as materials and
information to deliver products to customers. Supply chains consist of a
company, its suppliers, its distributors, and its customers.
In the traditional supply chain structure resources flow downstream to the
consumer. The supply network consists of a focal company and its suppliers,
retailers, and customers. Figure shows the basic structure of a supply chain.
Supplier Company CustomerRetail
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A supply chain is the stream of processes of moving goods from the
customer order through the raw materials stage, supply, production, and
distribution of products to the customer. All organizations have supply
chains of varying degrees, depending upon the size of the organization and
the type of product manufactured. These networks obtain supplies and
components, change these materials into finished products and then
distribute them to the customer.
Managing the chain of events in this process is what is known as supply
chain management. Effective management must take into account
coordinating all the different pieces of this chain as quickly as possible
without losing any of the quality or customer satisfaction, while still keeping
costs down.
The first step is obtaining a customer order, followed by production, storage
and distribution of products and supplies to the customer site. Customer
satisfaction is paramount. Included in this supply chain process are customer
orders, order processing, inventory, scheduling, transportation, storage, and
customer service. A necessity in coordinating all these activities is the
information service network.
In addition, key to the success of a supply chain is the speed in which these
activities can be accomplished and the realization that customer needs and
customer satisfaction are the very reasons for the network. Reduced
inventories, lower operating costs, product availability and customer
satisfaction are all benefits which grow out of effective supply chain
management.
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The decisions associated with supply chain management cover both the
long-term and short-term. Strategic decisions deal with corporate policies,
and look at overall design and supply chain structure. Operational decisions
are those dealing with every day activities and problems of an organization.
These decisions must take into account the strategic decisions already in
place. Therefore, an organization must structure the supply chain through
long-term analysis and at the same time focus on the day-to-day activities.
Furthermore, market demands, customer service, transport considerations,
and pricing constraints all must be understood in order to structure the
supply chain effectively. These are all factors, which change constantly and
sometimes unexpectedly, and an organization must realize this fact and be
prepared to structure the supply chain accordingly.
Structuring the supply chain requires an understanding of the demand
patterns, service level requirements, distance considerations, cost elements
and other related factors. It is easy to see that these factors are highly
variable in nature and this variability needs to be considered during the
supply chain analysis process. Moreover, the interplay of these complex
considerations could have a significant bearing on the outcome of the supply
chain analysis process.
Elements of the Supply Chain
A simple supply chain is made up of several elements that are linked by the
movement of products along it. The supply chain starts and ends with the
customer.
Customer:
9
The customer starts the chain of events when they decide to purchase a
product that has been offered for sale by a company. The customer contacts
the sales department of the company, which enters the sales order for a
specific quantity to be delivered on a specific date. If the product has to be
manufactured, the sales order will include a requirement that needs to be
fulfilled by the production facility.
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 fulfill the customer’s orders. To manufacture the
products the company will then have to purchase the raw materials needed.
Purchasing:
The purchasing department receives a list of raw materials and services
required by the production department to complete the customer’s orders.
The purchasing department sends purchase orders to selected suppliers to
deliver the necessary raw materials to the manufacturing site on the required
date.
Inventory:
The raw materials are received from the suppliers, checked for quality and
accuracy and moved into the warehouse. The supplier will then send an
invoice to the company for the items they delivered. The raw materials are
stored until they are required by the production department.
Production:
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Based on a production plan, the raw materials are moved inventory to the
production area. The finished products ordered by the customer are
manufactured using the raw materials purchased from suppliers. After the
items have been completed and tested, they are stored back in the warehouse
prior to delivery to the customer.
Transportation:
When the finished product arrives 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. When the goods
are received by the customer, the company will send an invoice for the
delivered products.
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Process View of a Supply Chain
Supply chain process cycle illustrates the four cycles and five supply chain
stages
Customer
order cycle
Retailer
Replenishment
cycle
DistributorManufacturing
cyce
Manufacturer Procurement
cycleSupplier
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Customer
Importance of Supply Chain Management
Of late, supply chain management is gaining growing importance because of
the following reasons :
The total time for materials to travels through the entire supply chain
management can be quite long . Since the materials spends so much
time waiting in inventory at various stages in the supply chain, there is
a great opportunity to reduce the total supply chain cycle time leading
to a corresponding reduction in inventory, increased flexibility,
reduced costs and better deliveries.
Many companies have drastically improved their internal operations
and now find it necessary to consider relations with external customer
and supplier in the supply chain to gain further improvements in their
operations.
Supply chain thinking is an application of systems thinking and
provides a basic for understanding processes that cut across a
company’s internal department and processes that extend outside the
company as well.
The goals of supply chain management are to reduce uncertainty and
risks in the supply chain, thereby positively affecting inventory levels,
cycle time, processes and ultimately end-customer service levels.
13
The design, planning and operation of supply chain have a strong
impact on overall profitability and success.
Supply chain management has become a hot competitive advantage as
companies struggle to get the right stuff to the right place at right
time.
All the “Total Quality Management”, “Just-in-Time System”,
“Reengineering”, “Team work” and “Delighting the Customers”
depends on the relationships with supplier and distributors who are
part of the supply chain.
Supply chain management includes transportation vendors, suppliers,
distributors, banks, credit and cash transfers, bills payable and
receivable, warehousing and inventory levels, order fulfillment and
sharing customer, forecasting and production information.
14
Literature Review
Abstract:
In a competitive business environment that requires strategy and innovation
to improve the bottom line, supply chain management has been vital in
creating competitive advantage. Increasingly, companies are also identifying
sustainability as an opportunity to create competitive advantage. This project
explores supply chains as a leverage point in advancing sustainable
development. Corporations have developed different tools to interact with
their suppliers on sustainability. Three of these devices were analyzed
against a framework for strategic sustainable development to identify some
of their strengths and weaknesses. A general set of criteria for sustainable
supply chain management devices that employs a strategic, whole-systems
perspective was then developed.
15
Chapter 2
Introduction
To
Company
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Introduction to Micropark Logistics Private Ltd.
Micropark Logistics Private Limited is in the business of DISTRIBUTION,
WAREHOUSING and C & F Agencies. ‘Micropark’ is one of the pioneer
operators in the field of Supply Chain Management in Central India.
Micropark Logistics Pvt. Ltd. incorporated in year 2004 is headquartered in
Nagpur & has branch offices in Pune, Mumbai, Hyderabad & Indore.
Micropark as an organization works for achieving the highest level of
customer satisfaction on a continuous basis. ‘Customer Orientation’ is core
to all the processes involved in area of its operation. Due to its process
driven approach Micropark Group is one of the first organizations in Central
India to receive ISO 9000:2001 certification across it sister concerns.
The group’s entry in the field of supply chain management started with one
of its sister concern M/S Mehadia & Sons being appointed as the C & F
agents’ in the year 1984. Since then ‘Micropark’ as a group has grown into
a Logistic Solution provider for around 20 companies of high repute in
Pharmaceutical, Automobile, Consumer durables & FMCG sectors. The
emergence of Micropark as a reliable partner in providing SCM solution for
these companies is the result of its customer-oriented approach & its
continuous strive to achieve highest level of Customer satisfaction through
process driven approach in every aspect of its operations. The group keeping
with the times is using IT solutions in its entire operations.
17
Micropark group handles operations for Mahindra & Mahindra, Zandu
Pharmaceuticals, RFCL, DIESL, Biological E, Indoco Remedies, S.C.
Johnson (All out), AGIO Pharma, Nokia (CDMA), SONY Ericsson, V John,
Biocon, Peter England, Amway, Pfizer, Ranbaxy, Torrent, Cadila, Sarabhai,
Alembic, Levis, Glenmark through its sister concerns viz. Parikh