MB20OM01 - SUPPLY CHAIN AND LOGISTICS

MANAGEMENT
NAME: BHARATHWAJ N
ROLL NUMBER: RA2152001040118
YEAR: 2022

SECTION: A
SEMESTER: III OPERATION ELECTIVE

BATCH OF 2021 - 2023

ASSIGNED TOPIC: DESIGN OF LOGISTICS PLAN AND

PREPARE THE LOGISTICS PLAN OF COMSTAR

SRM INSTITUTE OF SCIENCE AND TECHNOLOGY,

VADAPALANI, Chennai – 26

DEPARTMENT OF MANAGEMENT STUDIES

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 MB20OM01 - SUPPLY CHAIN AND LOGISTICS
MANAGEMENT
Year: II Name of the Student: BHARATHWAJ N
Semester: III Roll No: RA2152001040118
Section: Submission Date:
Rubric [Evaluation of Assignments]
S.No Contents to be submitted Exceeds Meets Fails Total
Minimum Minimum to Meet Marks
Standards Standards Standards
[76% – [50% - [0% –
100%] 75%] 49%]
1. Introduction to the
Organization (20 Marks)
Business description, Company
history, Mission and Vision of
company,
Logistics services offered

2. Draw the Block Diagram and

Structure of Logistics and Supply
Chain Process (10Marks)
3. Considerations of Logistics and
Supply Chain Process
(10 Marks)
Distance, Speed, Cost,
Topography, Climatic Conditions,
Nature of the Product
4. Prepare a Logistics Plan -
12 points for each appendix
(20 Marks)
Functional structure, Inventory
management, Warehousing
management, Inbound
Transportation, Outbound
Transportation, Transportation
operations management,
Role of third party logistics
provider

5. Role of IT in Logistics Supply

Chain - 10 points. (10 Marks)

6. Consolidate and Develop a

Logistics Plan Adopted in a
Organization (20 Marks)

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Presentation style – Minimum 15
Slides (10 Marks)

DATE & SIGNATURE OF THE FACULTY

NAME OF THE
FACULTY

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4
 CHAPTER-1
INTRODUCTION

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Business Description
Comstar is one of the leading multinational automotive ancillary companies engaged in the
design and manufacture of starting and charging systems for global passenger car and light
commercial applications. Comstar’s product portfolio is designed to cater various vehicle
segments and can be customized to best suit the customer requirements. With close to two
decades of excellence in design and manufacture of quality products, Comstar partners with
global OEMs like Ford, Volvo, Geely, Renault-Nissan, Jaguar Land Rover, Aston Martin, Tata,
Ashok Leyland, etc. Headquartered at Chennai, India, Comstar caters to various geographical
regions and has customers across Europe, North America, South America and Asia, supported
by our local warehouses. With offices in India, China, Sweden and US, and manufacturing
facilities in Chennai (India), Tecumseh (USA), Hangzhou (China) and Irapuato (Mexico),
Comstar is well positioned to support OEMs globally with a global installed capacity of over
6.8 million starter motors and 1.0 million alternators. We also have a wide network of
aftermarket partners in Europe and India.

Company History
The journey of the company started in 1995 as Sona Okegawa Precision Forgings, which was
a 75:25 joint venture between the Sona Group and Mitsubishi Materials and the pioneer of
warm forged near net-shaped gears manufacturing technology. The Sona Group, after acquiring
Thyssen Krupp’s forging business (which acquired BLW, the inventor of warm forging) and
25% stake of Mitsubishi, renamed the company to Sona BLW Precision Forgings, which
became the largest manufacturer of forged gears. In 2019, Sona BLW acquired Comstar
Automotive, a leading designer and manufacturer of starting and charging systems for
automobiles, and created a new identity.

Mission
Comstar India will make its customers successful by applying its employee’s intellectual
capital, rich experience and cost competitiveness in the design & manufacture of world class
quality products.

Vision
To be a highly responsible company, delivering world class products with passion and speed.
Quality is a way of life that reflects in whatever we do. Comstar will capture over 20% market
share of Global Automotive Starting & Charging Business by 2040

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Logistics services offered
For calendar year 2020, Battery Electric Vehicle (BEV) sales as a percentage of total global
vehicle sales stood at 3.3%, according to the Ricardo Report. The company derived 13.8%
(Rs205.7cr) of the company’s total income from the BEV market for FY21. As a percentage
of the total sale of goods, income from sale of goods to the BEV market has grown from 1.3%
in FY19 to 13.8% in FY21. For FY21, Rs1,115.8cr representing approximately 74.9% of total
income from sale of goods was derived from sale of goods to BEV, hybrid/ micro-hybrid and
power source neutral products. The company has been supplying differential gears in the global
EV market since April 2016 and differential assemblies since 2018, and according to the
Ricardo Report, their global market share of BEV differential assemblies in calendar year 2020
was 8.7%. They also design and manufacture traction motors and motor control units for
electric vehicles, with PMSM motors for EV and hybrid PVs and BLDC motors for electric
two-wheelers and electric three-wheelers.

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 CHAPTER-2
BLOCK DIAGRAM AND STRUCTURE OF
LOGISTICS AND SUPPLY CHAIN PROCESS

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Block Diagram and Structure of Logistics and Supply Chain Process

Manufacturers
We are a leading multinational company engaged in the Design & Manufacture of Starting and
Charging system for Passenger Cars and Commercial Vehicles. Comstar partners with Global
OEMs - Ford, Volvo, Jaguar, Mazda, Aston Martin, Tata Motors, FIAT, Ashok Leyland-Nissan
& General Motors. Comstar supplies advanced technology products from its state of art
manufacturing facilities at Chennai (India) and Tecumseh (USA).Our product portfolio is
designed to cater to various segments of vehicle applications and can be customized to best suit
Customer requirements. Comstar develops and supplies cutting-edge Go Green Start-Stop
technologies for the next generation micro and mild hybrid vehicles. Employees at Comstar
constantly challenge themselves to improve and excel in Quality, Delivery, Process and Speed
to support its customers.

Suppliers
Automotive Supplier Sona Comstar will launch its Rs 5,550-crore initial public offer (IPO)
next week. The company has priced the offer at Rs 285–291 per share. The IPO will remain
open between June 14 to June 16, and anchor investors will be allotted shares on Friday. The
issue consists of a fresh sale of Rs 300 crore and an offer for sale (OFS) worth Rs 5,250 crore,

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of shares held by Singapore Topco, an affiliate of the Blackstone group. Singapore Topco's
current holding stands at 66.2 per cent of the pre-offer paid-up equity capital of the company.
Sona Comstar was planning to raise Rs 6,000 crore earlier, but Singapore Topco decided to
reduce the OFS portion. Post-offer, the firm will hold a little over 33 per cent in the company.

Transporters
Our founder and CEO, William “Bill” Ferguson has spent over 50 years in the trucking
business. Bill has been a driver, broker, and owner/operator of trucking companies. When Bill
decided to move out of driving and into brokering loads, he spent many hours in a one-room
shack across from a truck scale in Springdale, Arkansas. He wrote down every truck name that
rolled through the scale and begin calling them. Through years of this kind of hard work, Bill
was able to open Polar Express, Inc . in the early 1970s. Bill successfully operated Polar
Express for 25 years, and had 185 trucks.

Bill founded Comstar Enterprises, Inc. in 1995. He started the company with 15 trucks, and
only a handful of customers who would book loads with a small company. By 1999, Comstar
had grown to 25 trucks. Today we have a fleet of 76 tractors and 110 trailers. In November,
2012, Stephen Ferguson (pictured at far left) took the reigns as President & Chief Operating
Officer.

Comstar Enterprises, Inc. is a service-based refrigerated carrier located in Tontitown, Arkansas.

We are a third-generation family-owned business that has been operating successfully since
1996. Although Comstar Enterprises, Inc. is family-owned and operated, we have built a team
of solid professionals, with a combined history of over 100 years in the transportation and
logistics industries.

Warehouses
Our comprehensive solution consists of supply chain management, warehousing, and logistics
services – providing the right product, at a cost-effective price, available to our customers at
their exact moment of need.

Retailers
Gurugram, June 14, 2021 (GPN): Sona BLW Precision Forgings Limited (Sona Comstar), one
of India’s leading automotive technology companies; received bids of 1,13,93,298 shares
against the offered 10,71,05,262 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 0.52 times. While the Qualified
Institutional Buyer category was subscribed 0.02 times, the Non-Institutional Investor category
was subscribed 0.01 times. The total size of the offer is Rs. 5,250 crores at the upper price band
of Rs. 291 per share.

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The Company raised Rs. 2,498 crores through 42 anchor investors. Government of Singapore
Investment Corporate (GIC) and Monetary Authority of Singapore (MAS) together made a
large investment of INR 401.5 crores in the anchor book.

Marquee foreign portfolio investors such as Nomura Asset Management, Fidelity, Eastspring
Investments, Goldman Sachs Asset Management, Amundi participated significantly in the
anchor book. Marquee domestic investors include SBI MF, Axis MF, Birla MF, HDFC MF,
Mirae Asset MF, SBI Life Insurance, Kotak MF, Kotak Life Insurance, Birla Life Insurance,
Max Life Insurance, Bharti Axa, Invesco MF, Canara Robeco MF, Sundaram MF, IIFL, Bank
of Baroda MF and Edelweiss amongst others.

Niche global investors with EV investing experience including Thornburg Investment

Management and RWC also participated with keen interest. Kotak Mahindra Capital Company
Limited, Credit Suisse Securities (India) Private Limited, JM Financial Limited, J.P. Morgan
India Private Limited and Nomura Financial Advisory and Securities (India) Private Limited
are the Book Running Lead Managers (“BRLMs”) to the Offer.

Customers
Sona Comstarisan is Indian origin, global automotive systems & components manufacturer
with9plants spread across India, China, Mexico, and the USA. So we have Million of customers
worldwide

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 CHAPTER-3
CONSIDERATION OF LOGISTICS AND SUPPLY
CHAIN PROCESS.

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Distance
Sona Comstar transports supplies to a distance of million milestones worldwide.

Speed
It transports the supply at a speed of 85km\hr across India.

Cost
So while inland water transport costs around 60 paise a kilometer, transportation by rail costs
Rs 1 per kilometer and Rs 1.50 by road. It will also help unclog arterial roads in the country.

Topography
Comstar plans to spend Rs. 1,000 crores on land acquisition this year around the manufacturing
Hubs.

Climatic Conditions
Smart, safe and clean mobility solutions are of paramount importance, especially in the urban
regions which are grappling with challenges like traffic and pollution caused due to ever-
increasing population in such centres, says Dr Ashutosh Pastor, manager – incubation at FITT.
There is an unmet need for a multi-faceted approach in improving the urban mobility to make
it faster, efficient and clean.

Nature of the Product

he company is a leading supplier to the fast-growing global electric vehicle markets. It derived
13.8per cent of revenue from the battery EV market and 26.7 per cent from the micro
hybrid/hybrid market in FY21.

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 CHAPTER-4
LOGISTICS PLAN.

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Functional structure
The governments thrust on capital expenditure coupled with initiatives such as the production
linked incentive (PLI) scheme should bolster private investment activity, amidst improving
capacity utilization, deleveraged corporate balance sheets, higher offtake of bank credit and
congenial financial conditions. At the same time, the escalation in the geopolitical situation and
the accompanying surge in international crude oil and other commodity prices, tightening of
global financial conditions, persistence of supply-side disruptions and significantly weaker
external demand pose downside risks. The Purchase Managers Index manufacturing index was
at 54.0 in March 2022 compared to 55.4 in March 2021. Based on data provided by the NSO,
On the supply side, real gross value added (GVA) rose by 8.3 per cent in 2021-22, with its
major components, including services, exceeding pre-pandemic levels Sector-wise, agriculture
has remained the silver lining while contract-based services, manufacturing, construction were
hit hardest, and have been recovering steadily. Government consumption and net exports have
further provided support in the recovery. The Government has announced several fiscal
measures to incentivize capital formation attract foreign investment and create employment
and the Reserve Bank of India has also stepped in to provide adequate liquidity. Indian
economic growth is estimated at 9.0% in FY 2021-22 and 7.8% in FY 2022-23. The GDP
growth estimate for FY 22-23 is 7.2% down from 9.5% in view of the global geo-political
situation arising out of the Russia-Ukraine conflict and elevated global commodity prices.

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Inventory management
The entire automotive industry is undergoing a transformation towards a data-driven economy
in which digital solutions are becoming as important as classic vehicle technology. Comstar
produces holistic system solutions which allow vehicles to see, think, and act, in order to shape
Next Generation Mobility.In todays dynamic and rapidly evolving scenario, global mega-
trends such as population growth, Internet of Things (IoT), higher customer expectations and
a push towards sustainability, combined with increasingly demanding customer requirements
for flexibility, speed and safety put further pressure on supply chains and fleet profitability.

Experts group the five core technologies that will shape the future mobility market under the
acronym CASES: Connected, Autonomous, Shared, Electric and Sustainable. In an
increasingly complex world, the Compnay wants to offer simplicity, convenience and added
value at the same time to all mobility users. Abreast with these technological trends and to meet
the challenges posed by the same, the company will focus and drive technological advancement
that will continue to enable smarter operations across the mobility ecosystem.

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Warehousing management
Competition can do wonders for a business. When rivals outdo a company, it is often forced to
explore possibilities that were previously unknown to it. This is something Sudam Maitra,
senior managing executive officer for supply chain at Comstar, realized early in a purchasing
career that has spanned three decades.

Inbound Transportation
Inbound logistics refers to the movement of supplies, raw materials, and finished goods from
a manufacturer or any other distribution channel to a warehouse or a retail store.
With a sound inbound logistics process, a business can restock their best-selling items just in
time for the holidays and the festive season, introduce new products for sale, even-out process
returns, and so much more.

Outbound Transportation
Outbound logistics on the other hand deals with the movement of end products from a
distribution or fulfillment center to the end consumer. Generally, the outbound logistics process
starts with a placed order, then it moves on to warehouse packing, and finally ends with product
delivery.

Transportation operations management

Shipping automotive parts (such as auto body parts) as freight can be a hassle. It’s expensive,
time-consuming, and all-around, high-risk in nature.

Whether you’re an original equipment manufacturer (OEM) or a Tier 1, 2, or 3 supplier you

need to transport your auto parts safely and on time.
BR Williams is here to help. Our years of working in the auto industry have provided us with
the essential area of expertise needed to effectively service automotive OEMs and suppliers.
We even offer intermodal trucking and drayage for auto parts in the Port of Mobile.

Role of third-party logistics provider

Given the current economic climate, many companies are considering outsourcing some
activities to reduce costs and to focus on their core competency; thus, by adopting a
competency-focused approach they enhance their chances to survive in a growing and
competitive market. Third-Party Logistics (3PL) is a system that facilitates logistic activities.
First, however, the organizations need to assess which companies are suitable for outsourcing.

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The aim of this paper is to depict a structural system for 3PL selection and validate it in real-
world automobile companies. We use the Delphi method to determine criteria for 3PL selection
and apply Evaluation by an Area-based Method for Ranking (EAMR) to prioritize the
candidate alternatives. This method is used in combination with a Shannon Entropy based
approach for determining the required weights. Computational analysis shows which criteria
and companies have high priority, and based on that candidate alternatives for outsourcing are
evaluated. The results suggest how automobile companies select 3PL companies and allocate
their work to them.

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 CHAPTER-5
ROLE OF IT IN LOGISTICS SUPPLY CHAIN.

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ROLE OF IT IN LOGISTICS SUPPLY CHAIN:
The Company continues to accelerate its digital transformation drive across 3 major pillars -
enterprise transformation, digital transformation and IT/Cyber security in alignment with
global IT guidelines.
The key areas of focus in the digital transformation are Data & Advanced Analytics, Industry
4.0, Robotic Process Automation, Mobility based solutions, Digital Twin, chatbots to enable
cost optimization, productivity and addressing customer needs. Post the integration, IT has
aligned with the Comstar Global IT framework and leverages the platforms, technologies, and
tools from the Global Comstar IT Organization. IT continues to drive and implement the region
priorities in alignment to the Global framework. Focus is on adopting and Implementing a
Digital Manufacturing Platform to enable a connected and Smart Factory in all the
manufacturing sites. Production IT Security is also an important focus point. Digital
transformation projects are tracked & implemented based on the impact on savings and
productivity to the business functions.
Six Sigma methodologies are adopted to evaluate ROI, business case, savings realization etc.,
for every digital project. The primary focus of all initiatives is to ensure a frugal but very
impactful solution implementation. Existing successful digital project implementations in
specific sites/plants are extrapolated for implementation across all business sites in India. Proof
of Concepts are planned and implemented in continuously evolving new digital technologies
& platforms by leveraging on an ecosystem consisting of internal resources at the Global
Business Services Centre, centers of excellence, startups organizations, university
collaborations & NASSCOM events.
As part of Enterprise transformation, ERP systems projects are being implemented to improve
maturity, compliance, standardization and automation in existing process. Process Digital Twin
solutions are implemented for key processes to evaluate adherence and identify potential
opportunities for optimization and automation IT/Cyber security governance and compliance
continues to be a critical focus area specifically in this period where multiple digital projects
and smart solutions are being implemented. IT/ Cyber security measures defined by the the
global ZF group IT/cyber security team are strictly adhered to.

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 CHAPTER-6
LOGISTICS PLAN ADOPTED IN A
ORGANISATION.

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LOGISTICS PLAN:

PHASE 1: Inventory management system.

Phase 1 of the logistics planning process deals with innovations of new products with classic
designs.

PHASE 2: Warehouse management system.

Phase 2 of logistics planning deals with the overall activities of both inbound and outbound
activities of the warehouse and the availability of goods and storage space for the goods
allocated.

PHASE 3: Transport management system.

Phase 3 of logistics planning deals with the transportation of goods and services from end to
end. Also deals with a logistics platform that uses technology to help businesses plan, execute,
and optimize the physical movement of goods, both incoming and outgoing.

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