1.

INTRODUCTION FOR THE STUDY:

Supply Chain Management (SCM) in simple words can be described as a

network of facilities and distribution options. Wherein SCM involves functions

such as material procurement, transformation of the material into intermediate

and finished products, and then distribution of the finished product to

consumer. Supply chains are found to exist in both service and manufacturing

sectors, although the complexity of the supply chain may vary vastly from

industry to industry and firm to firm, however it represents a logical advance in

our evolving understanding of business performance (Smith and Budress,

2005).

A very simple example of supply chain can be explained involving a single

product. The chain involves procurement of raw material from vendors,

transformed into finished goods in a single step, then transported to

distribution centers and ultimately to consumer. Realistically supply chains are

always very complex having multiple end products with shared components,

facilities and capacities. The flow of materials is not always along a simple

network, various modes of transportation gets involved and the cost of material

for the end items may become exorbitant (Bertodo, 2002).

In any organizational setup the supply chain refers to a wide range of functional

areas which include SCM-related activities, such as inbound and outbound

transportation, warehousing, inventory control, sourcing, procurement, supply

management, forecasting, production planning & scheduling, order processing,

and customer service are all part of the same aspect including the information

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systems which is necessary to monitor all of these activities. Thus it can be

simply stated that, "The supply chain encompasses all of those activities

associated with moving goods from the raw-materials stage through to

the end user."

Traditionally planning, procurement, manufacturing, marketing and the

distribution set ups in the organizations along the supply chain operate

independently having their own objectives and generally these are conflicting.

Marketing objective of high consumer service and attainment of maximum sales

output, always conflicts with manufacturing and distribution goals. Many

manufacturing operations are designed to maximize output and lower costs

with little consideration for the impact on inventory levels and distribution

capabilities. Purchasing contracts are often negotiated with very little

information beyond historical buying patterns. The resultant of these factors is

creation of a void with respect to an integrated plan in the organization. There

is a definite need for a system through which these different functions can be

coordinated and integrated together (Bertodo 2002) and SCM is a strategy

through which such integration can be achieved.

One of the best definitions of SCM offered to date comes from Bernard J. (Bud)

LaLonde, Professor emeritus of SCM at Ohio State University. SCM has been

defined as, "The delivery of enhanced customer and economic value

through synchronized management of the flow of physical goods and

associated information from sourcing to consumption.” The aspect,

"from sourcing to consumption" last part of the definition suggests, though

achieving the real potential of SCM requires integration not only of these

entities within the organization, but also of the external partners. The latter

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include the suppliers, distributors, carriers, customers, and even the ultimate

consumers. All are central players in what James E. Morehouse of A.T. Kearney

calls the extended supply chain. "The goal of the extended enterprise is to

do a better job of serving the ultimate consumer,” Superior service, he

continues, leads to increased market share. Increased share, in turn, brings

with it competitive advantages such as lower warehousing and transportation

costs, reduced inventory levels and lower transaction costs.

The best companies around the world are discovering a powerful new source of

competitive advantage. It is called SCM and it encompasses all of those

integrated activities that brings product to market and creates satisfaction

among customers. The SCM integrates manufacturing operations, purchasing,

transportation, and physical distribution into a unified program. Successful SCM

then coordinates and integrates all of these activities into a seamless process.

It embraces and links all of the partners in the chain. In addition to the

departments within the organization, these partners include vendors, carriers,

third party companies, and information systems providers.

2. NEED FOR THE STUDY:

Supply chain management (SCM) is critical to a company’s

procurement to production lifecycle. The supply chain management has to
be efficient and cost-effective across the entire system;from
transportation and distribution to inventories of rawmaterials,
workinprocess, and finished goods,are to be minimized.Procurement
happens in each and every aspect of an organization. A supply chain
strategy refers to how the supply chain should operate in order to
compete in the market. The strategy evaluates the benefits and costs
relating to the operation.The supply chain strategy focuses on the actual
operations of the organisation and the supply chain that will be used to
meet a specific goal.
The supply chain integrates, coordinates and monitors the flow of
materials, information, and funds.

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The need to manage supplier relations, information, contracts and more
growsrapidly while the need to follow regulations persists.The product flow
includes the movement of goods from a supplier to a customer, as well as any
customer returns or service needs. Managing contractual obligations to assure a
continuous supply and avoid a service company’s delivery
disruptions.Strengthening supplier relations for systematic synergy with
suppliers and different lines of business. Enterprise spending management to
assure procurement happens through the right suppliers and reduces costs.
Managing risk and compliance to abide by organizational as well as industry
specific regulations and compliances.

3. OBJECTIVE OF THE STUDY

 To study the inventory management methods with the help of ABC

analysis.
 To study the Suppliers Performance based on rating.
 To study the logistics process flow in terms of Freight Schedule with

legal
liabilities

4. SCOPE OF THE STUDY:

 To analyze the different activities of Supply Chain Management

 To understand the coordination of production, inventory, and logistics among

the participants in a supply chain.

5. PERIOD OF THE STUDY:

One year data on supply chain management process is analysed in Hela

systems Pvt.Ltd.

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6. RESEARCH METHODOLOGY

Sources of Data collection

To do a research always we use two sources of data collection. Primary and

secondary.

METHODS OF COLLECTING PRIMARY DATA

The Primary data are the information generated to meet the lesser specific

needs

of the investigation at hand. Thus, the investigator has to collect,data

separately for

the study undertaken. The following are the three methods which are used to

compile primary data.

(1) Observation (2) Schedule and questionnaire (3) Interview.

It is the source which collects the primary data through Questionnaire and

record the raw data for further analysis, Primary source is used by the face-to-

face survey with the customers of the company.

Observation

This is one of the cheaper and more effective techniques of data collection.

This approach to the collection of information is as old as human race. Much of

our knowledge about human beings, rounding is collected only through this

process.

Observation is indispensable not only in sciences but in social sciences research

also observation has its own utility.

Schedule and Questionnaire

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The Most frequently used method of data collection is schedule and

questionnaire. These methods are considered to have a particular relevance, if

the researcher is to collect data on personal preferences, social attitudes,

opinions, beliefs,feelings, etc. the increasing use of schedules and

questionnaires is because of increased emphasis by quantitative measurement

of uniformly accumulated data.

SECONDARY SOURCES OF DATA :-

Secondary data refer to theinformation that has been collected by someone

other than a researcher for purposes other than those involved in the research

project at hand.

There are various factors such as the nature of the study, status of the

investigator,availability of financial resources, time and degree of accuracy of

the results desired, thatdecided the choice of the sources of data that enriches

the utility of the study.The study of this project is made with the help of

secondary data.

Internal Sources:

This data is collected from the organization.

With the help of storage data in the organization as well as information

got from manager who gives fair idea of how SCM management is

done in the organization.

By observing internal related Reports and Documents like BinCards, Purchase

Order, Goods Receipt cum Inspection Note etc.

External Sources:

Company Website:

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 Some information is collected from company website.

Secondary source is the internet, magazines, and old data files of the research.

7. Limitations of the study:

Due to the confidentiality clause of the organization,the information,data

provided have certain limitations.

8. Chapterization:

I. Chapter -I : Introduction, Scope of the study,Need of the study,

Objectives of the study, Limitation of the Study.

II. Chapter - II : Review of Literature

III. Chapter - III : Research Methodology

IV. Chapter - IV : Company profile

V. Chapter - V : Data analysis and Interpretation

VI. Chapter -VI : Findings, Suggestions and Conclusions.

Bibliography,Annexure.