Supply Chain Management at Meghmani

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PREFACE

Theoretical knowledge is provided in the institute, but in fact it is not much useful

without practical aspects of management. Master of Business Administration course is

designed with the objective of preparing the most competent business person. In order

to achieve this objective in best possible manner Gujarat University has made it

mandatory for the students of M.B.A to undergo training for two months in a firm of their

choice so that they can have some knowledge of the corporate world.\

As per the syllabus requirement I underwent my training at MEGHMANI INDUSTRIES

LTD, Chharodi. I sincerely try my best in collecting in all the necessary information and

have gained both practical and theoretical knowledge during my training at MIL.

This report is reflection of what I have observed and came to know during my training. I

hope that the report prepared by me will fulfill the requirement of the syllabus and

contains all information which is required in the preparation of report.


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Acknowledgement

For the success of any work there are few people who are responsible for it. I

completed my report work with the help of some people and for this I would like to

express my appreciation and gratitude towards these people who have contributed their

efforts and valuable time in guiding me.

I would like to acknowledgement my deep and sincere regards to our honourable

Director Mr. P.K. Mehta for allowing us to undergo training. I am also thankful to Mr.

Mehul Yogi for giving me valuable guidelines concerning the project report.

I also express my due thanks to Mr. Benny Peter (H.R.M), Mr. Prakashbhai Patel

(Dept.G.M.) and to the management of MIL for giving me this golden opportunity and

rendering finest hospitality in rendering on necessary information.


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TABLE OF CONTENT

Chapter No. Content Page No.

Executive Summary1 Objective and Research Methodology

2 Company Profile

Meghmani At Glance

Mission of MIL

Vision of MIL

Objectives of MIL

Research and Development at MIL

Competitive Strength of MIL

Environment and Safety

Network of MIL

Main products of MILStrategies of MIL

3 Theoretical Framework of Supply chain management

Literature Review

Defining Supply Chain

Definition of supply chain management

Elements of supply chain

Supply chain management

Supply chain management technology

Importance of supply chain management

Consequence of SCM

Scope of SCM4 Supply chain decisions at MIL

Location Decision

Purchase Decision

Production Decision

Inventory Decision

Transportation Decision

5 Findings

6 Suggestions

7 Bibliography

EXECUTIVE SUMMARY


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The supply chain is the series of links and shared processes that exist between

suppliers and customers. These links and processes involve all activities from the

acquisition of raw materials to the delivery of finished goods to the end consumer. It

includes all activities and processes to supply a product or services to the final

customer. Often it includes more than one company in a series of supplier-customer

relationships. It usually includes four functional components.

1. Demand planning

2. Manufacturing planning and scheduling

3. Supply planning and

4. Transportation plan.

While supply chain management software is related to enterprise resource planning

software (ERP), Supply Chain Management (SCM) is focused on planning and ERP is

focused on execution. Two of the most beneficial supply chain practices are matching

the correct supply chain strategy to the product and communication between supplier

customer partners in the supply chain.

Supply chain management is the act of optimizing all activities throughout the supply

chain, so that products and services are supplied in the right quantity, to the right

location at the right time and at the optimal cost.

This project is about the supply chain management of Meghmani Industries Ltd. Project

starts with research methodology and objective of the project. Second chapter deals


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with introduction about company. Third chapter is theoretical framework of supply chain

management and last part is about the supply chain management of Meghmani

Industries Ltd.

CHAPTER -1

OBJECTIVE AND RESEARCH METHODOLOGY


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Objective of the study:

1) To understand the process of supply chain which starts at procurement of

material to distribution of material to customer at Meghmani industries. Ltd.

2) To know the different factor affecting supply chain.

Research Methodology

When we talk of research methodology, we not only talk of the research methods but

also the comparison of the logic behind the methods we used in this context of our

research study and explain why we are using a particular method or technique and why

sign the others. A research design is a framework to prepare plan or study. It is useful

as a guide to collect the data and analyzing it. It is a blue print that is followed in

completing the study. Research design is the conceptual structure within which the

research will be conduct.

Type of Research: The study exploratory in nature.

Sources of Data Collection


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I have used both primary as well as secondary data for my report but the concentration

on secondary data is more than primary data.

Primary data will be collected through interview of logistic dept. and through

observation of supply chain of the company.

Secondary data will be collected through brochures, list of customer, website and

journals.

Limitation

1) This project is restricted to study purpose only and can be used keeping in

view the object that is made for.

2) The respondent in the project may not reveal important / confidential

information pertaining to the company policy and for this the project should be used

keeping in view the said limitation.

3) Finding of the study will be based on the assumptions that respondents have

given correct information.

4) Company is in the business of agro based products and heavy chemicals,

some areas will be restricted for us.


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5) The branch of supply chain is very wide so it is not possible to cover each and

every topic.

CHAPTER -2


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MEGHMANI AT A GLANCE

Name of the unit : Meghmani Industries Ltd.

Year of establishment : 1993

No. of employees : 900

Registered office : Plot No.27,

Phase I, GIDC,

Vatva,

Ahmedabad

Plant locations : Chharodi, Vatva

Auditors : Balkrishna T. Thakkar & Co.

MEGHMANI INDUSTRIES LTD. (MIL) : A company establishment in 1993 offering

comprehensive range of herbicides and fungicides technical as well as its formulations

used for crop protection mainly for treating weeds and fungal disease in various crops.

It has ISO 9001 certified manufacturing sites spread over 1,15000 sq. mts. Land.

Company enjoys Export House Recognition by Govt. of India. Dept. of Commerce, New

Delhi MIL products enjoy very good market reputation in Domestic as well International

market across the globe.


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Its corporate company MEGHMANI CORGANICS LTD. offers insecticides used in crop

protection, public health, termite & insect control and veterinary applications.

Overview of MIL:

ISO 9001 & 14001-2000 Certification

Dyes are free from banned amines.

Market leader in chemical as well as agro based products

247 operation capacity

Domestic as well as international presence

Export house recognition by government of India

MISSION OF MIL

Strived to achieve growth and leading position in the market.

Give complete satisfaction to customer every time.

Consistent quality

Cultivate long and mutually beneficial relationship with customer.

Providing product and solution to match customers need in every respect.

VISION OF MIL :

A front runner in India and a producer with International repute.

OBJECTIVES OF MIL


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Objectives establish the goals and the aims of the business and determine the shape of

future events. Objectives are the way of achieving motives for profit of social service.

Main objectives of MIL are:

Increasing productivity of work force

To introduce new products and create new markets

Customers service and customer satisfaction

Improving work culture among the employees

Capitalizing on company strength and use of corporate assets

Continuous innovation

To provide a growth rate of about 20% p.a.

RESEARCH AND DEVELOPMENT AT MIL:

Continued emphasis on Research & Development have enabled Meghmani group to

carve a niche for itself in the global markets in the manufacture of pigments, and

dyestuffs as well as in basic crop protection chemicals. Maintaining international

standard in product quality has ensured customer satisfaction. The Research &

Development activities are focused on Process development, New Intermediates, Raw

Material substitution, Improvement of Yield and Quality, Development of Active

Ingredients and Toll research/Custom Synthesis.

COMPETITIVE STREGTHS OF MIL


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Experienced and Qualified Management Team and Technical Personnel

Co. has a proven management team led by founders who have over 20 years of

collective experience in the pigments and pesticides industry.

The production operations at each of plants are managed by a team of skilled technical

engineers with the requisite technical know-how to carry out production processes. It is

through their consistent research and development efforts in improving co.s production

processes that Co. has developed an extensive range of products suitable for use in a

multitude of applications. Co.s technical staff is highly qualified and trained, and many

have had working experience with MNCs and other reputed large Indian companies.

Co. has a workforce of over 900 employees. It is the expertise and dedication of people

that provide Co. the leverage to respond quickly to changing market trends and

demands in the pigments and agrochemicals industry.

Diversified Customer Base

Co.s Pigments customers are mainly MNCs from a wide range of industries such as

printing inks, plastics, paints, textiles and leather, paper and rubber. It has more than

200 Pigment products customers from various countries in North America, Europe,

Central and Latin America, and Asia-Pacific.

Co. has more than 90 Agrochemical customers, which include leading pesticides

manufacturers from countries in North America, Europe, Latin America and Asia, as well

as end users in the domestic Indian market.


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Co. has a distribution network of 20 overseas distributors catering to its international

markets for its Pigments and Agrochemical products, and a chain of over 1,000

stockiest, agents, distributors and dealers covering the domestic market in India.

Cost Advantage

Vertical integration of production processes yields some upstream products that are

used as raw materials for its pigment and agrochemical products. This allows for

effective management of costs and ensures regular supply of raw material of the

desired quality.

Multi functional design of Co.s agrochemical production facilities provides flexibility to

meet changing demand requirements.

Strategic location of Co.s production facilities at close proximity to sources of raw

materials lowers procurement costs. Collectively, these features provide a distinct cost

advantage to our Company.

Established brand names

Company's brands, Megastar', 'Megacyper' (Pesticide Formulations) and 'Meghafast'

(Pigments) are recognized names among consumers in India, Europe, USA and Latin

America. Co. has more than 36 brands of various pesticides formulations which cater to

the needs of Indian farmers.


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Environment and Safety

MIL's Plants and operational facilities:

Have a good track records on safety and loss prevention / minimization

Have the necessary facilities to treat liquid / solid waste and air emission that

contain pollutants, in accordance with the requirements of the Gujarat Pollution

Control Board ("GPCB").

Are complying with rules and regulations of Indian Government on Health, Safety

and Environment Protection

Are ISO certified and follow sound Health, Safety and Environmental policy

It is also found that following safeguards are in place at all the plants.

Fire fighting hand appliance are provided

Work procedures and safety instructions provided

Personal protective equipment are in place and in use

Risk analysis are being carried out periodically

Medical support is available to attend to occupational health related problems

and supervision of trained first-aid providers

Some of Co.s products and raw materials are considered hazardous and /or

poisonous. Co. has adopted safety procedures at its manufacturing plants,

particularly in relation to the import of, storage, transportation and sale of such

hazardous and/or poisonous substances.

They have prepared safety manual, which is made available to its entire staff at

all plants. In addition, a medical room is provided at all the plants where routine

medical checks are carried out.


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NETWORK OF MIL

INTERNATOINAL LEVEL EXPOSURE

Suppliers, Customers & Market (Pesticides)

Companys major suppliers are :

GACL (Gujarat Alkalis and Chemicals Ltd.)

BASF India

Tata Chemicals

Sudarshan Chemicals

Mansi Industries Ltd.

A partial list of companys long-standing customers for pesticides is :

Micro Flo

Valent

Meghmani Agro dyne Limited

FMC Agricultural Products

Company has :

Over 90 customers, including leading pesticides manufactures in North America,

Europe, Latin America, Asia and end users in the domestic India market.

Markets:


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Global marketing network

Warehouse in Belgium, Uruguay, China, Russia, Germany, the U.S. Columbia.

Overseas offices in Belgium, China and the U.S.

We market via direct sales terms and distributors / agents.

Company has:

An extensive network of 20 overseas distributors worldwide

Over 1000 stockiest, agents, distributors and dealers covering India market

Warehouse in Belgium and Uruguay

MAIN PRODUCTS OF MIL

Pesticides :

A pesticide is any chemical which is used by man to control pests. The pests may be

insects, plant diseases, fungi, weeds, nematodes, snails, slugs, etc. Therefore,

insecticides, fungicides, herbicides, etc., are all types of pesticides. Some pesticides

must only contact (touch) the pest to be deadly. Others must be swallowed to be

effective. The way that each pesticide attacks a pest suggests the best way to apply it;

to reach and expose all the pests. For example, a pesticide may be more effective and

less costly as a bait, rather than as a surface spray.

Fungicides


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Fungicides are chemicals used to control the fungi which cause molds, rots, and plant

diseases. All fungicides work by coming in contact with the fungus, because fungi do

not "swallow" in the normal sense. Therefore, most fungicides are applied over a large

surface area to try to directly hit every fungus. Some fungicides may be systemic in that

the plant to be protected may be fed or injected with the chemical. The chemical then

moves throughout the plant, killing the fungi.

Herbicides

Herbicides are chemicals used to control unwanted plants. These chemicals are a bit

different from other pesticides because they are used to kill or slow the growth of some

plants, rather than to protect them. Some herbicides kill every plant they contact, while

others kill only certain plants.

Nonselective herbicides are toxic to all plants. These are often used when no

plants are wanted in an area. For example, nonselective herbicides could be

used for clearing under guardrails or for total control of weeds in industrial

areas.

Selective herbicides kill some plants with little or no injury to other plants.

Usually selective types will kill either broadleaved plants or grassy plants.

These are useful for lawns, golf courses or in areas with desirable trees.

Some very selective herbicides may kill only certain plants in a group; for

example, crabgrass killers on lawns.


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STRATEGIES OF MIL

World class manufacturing

Individual R&D centre at each unit

Total quality management

Participative management

CHAPTER -3

THEORETICAL FRAMEWORK OF SUPPLY CHAIN MANAGEMENT

LITERATURE REVIEW


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Management is on the verge of a major breakthrough in understanding how industrial

company success depends on the interactions between the flows of information,

materials, money, manpower, and capital equipment. The way these five flow systems

interlock to amplify one another and to cause change and fluctuation will form the basis

for anticipating the effects of decisions, policies, organizational forms, and investment

choices. Forrester introduced a theory of distribution management that recognized the

integrated nature of organizational relationships. Because organizations are so

intertwined, he argued that system dynamics can influence the performance of functions

such as research, engineering, sales, and promotion. He illustrated these phenomena

utilizing a computer simulation of order information flow and its influence on production

and distribution performance for each supply chain member, as well as the entire supply

chain system. More recent replications of this phenomenon include the Beer Game

simulation and research covering the Bullwhip Effect. Discussing the shape of the

future, Forrester proposed that after a period of research and development involving

basic analytic techniques, there will come general recognition of the advantage enjoyed

by the pioneering management who have been the first to improve their understanding

of the interrelationships between separate company functions and between the

company and its markets, its industry, and the national economy. Though his article is

more than forty years old, it appears that Forrester identified key management issues

and illustrated the dynamics of factors associated with the phenomenon referred to in

contemporary business literature as Supply Chain Management (SCM). The term

supply chain management has risen to prominence over the past ten years. For


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example, at the 1995 Annual Conference of the Council of Logistics Management,

13.5% of the concurrent session titles contained the words supply chain. At the 1997

conference, just two years later, the number of sessions containing the term rose to

22.4%. Moreover, the term is frequently used to describe executive responsibilities in

corporations. SCM has become such a hot topic that it is difficult to pick up a

periodical on manufacturing, distribution, marketing, customer management, or

transportation without seeing an article about SCM or SCM-related topics. There are

many reasons for the popularity of the concept. Specific drivers may be traced to trends

in global sourcing, an emphasis on time and quality-based competition, and their

respective contributions to greater environmental uncertainty. Corporations have turned

increasingly to global sources for their supplies. This globalization of supply has forced

companies to look for more effective ways to coordinate the flow of materials into and

out of the company. Key to such coordination is an orientation toward closer

relationships with suppliers. Further, companies in particular and supply chains in

general compete more today on the basis of time and quality. Getting a defect-free

product to the customer faster and more reliably than the competition is no longer seen

as a competitive advantage, but simply a requirement to be in the market. Customers

are demanding products consistently delivered faster, exactly on time, and with no

damage. Each of these necessitates closer coordination with suppliers and distributors.

This global orientation and increased performance-based competition, combined with

rapidly changing technology and economic conditions, all contribute to marketplace

uncertainty. This uncertainty requires greater flexibility on the part of individual

companies and supply chains, which in turn demands more flexibility in supply chain


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relationships. Despite the popularity of the term Supply Chain Management, both in

academia and practice, there remains considerable confusion as to its meaning. Some

authors define SCM in operational terms involving the flow of materials and products,

some view it as a management philosophy, and some view it in terms of a management

process. Authors have even conceptualized SCM differently within the same article: as

a form of integrated system between vertical integration and separate identities on one

hand, and as a management philosophy on the other hand. Such ambiguity suggests a

need to examine the phenomena of SCM more closely in order to clearly define the

term and concept, to identify those factors that contribute to effective SCM, and to

suggest how the adoption of a SCM approach can affect corporate strategy and

performance. The purpose of this paper is to examine the existing research in an effort

to understand the concept of supply chain management. Various definitions of SCM

and supply chain are reviewed, categorized, and synthesized. Definitions of supporting

constructs of SCM and a framework are then offered to establish a consistent means to

conceptualize SCM. Antecedents and consequences of SCM are identified, and the

boundaries of SCM in terms of business functions and organizations are proposed. A

conceptual model and definition of SCM are then presented that indicate the nature,

antecedents, and consequences of the phenomena. The model is accompanied by a

series of managerial and research implications.

WHAT IS SUPPLY CHAIN MANAGEMENT?

It has been noted that discussions of SCM often use complicated terminology, thus

limiting managements understanding of the concept and its effectiveness for practical

application. This section is, thus, dedicated to reviewing, classifying, and synthesizing


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some of the widely-used definitions of supply chain and supply chain management in

both academia and practice. The goal of this discussion is the development of one,

comprehensive definition upon which managers and future researchers can build.

Defining the Supply Chain

The definition of supply chain seems to be more common across authors than the

definition of supply chain management. La Londe and Masters proposed that a supply

chain is a set of firms that pass materials forward. Normally, several independent firms

are involved in manufacturing a product and placing it in the hands of the end user in a

supply chain-raw material and component producers, product assemblers, wholesalers,

retailer merchants and transportation companies are all members of a supply chain. By

the same token, Lambert, Stock, and Ellram define a supply chain as the alignment of

firms that brings products or services to market. Note that these concepts of supply

chain include the final consumer as part of the supply chain.

Another definition notes a supply chain is the network of organizations that are involved,

through upstream and downstream linkages, in the different processes and activities

that produce value in the form of products and services delivered to the ultimate

consumer. In other words, a supply chain consists of multiple firms, both upstream (i.e.,

supply) and downstream (i.e., distribution), and the ultimate consumer. Given these

definitions, for the purposes of this paper, a supply chain is defined as a set of three or

more entities (organizations or individuals) directly involved in the upstream and

downstream flows of products, services, finances, and/or information from a source to a


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customer. Encompassed within this definition, we can identify three degrees of supply

chain complexity: a direct supply chain, an extended supply chain, and an ultimate

supply chain.

A direct supply chain consists of a company, a supplier, and a customer involved in

the upstream and/or downstream flows of products, services, finances, and/or

information. An extended supply chain includes suppliers of the immediate supplier and

customers of the immediate customer, all involved in the upstream and/or downstream

flows of products, services, finances, and/or information.

An ultimate supply chain includes all the organizations involved in all the upstream

and downstream flows of products, services, finances, and information from the ultimate

supplier to the ultimate customer. Figure illustrates the complexity that ultimate supply

chains can reach. In this example, a third party financial provider may be advice; a third

party logistics (3PL) provider is performing the logistics activities between two of the

companies; and a market research firm is providing information about the ultimate

customer to a company well back up the supply chain. This very briefly illustrates some

of the many functions that complex supply chains can and do perform. Although we will

address this point in greater depth later in this paper, it is important to realize that

implicit within these definitions is the fact that supply chains exist whether they are

managed or not. If none of the organizations actively implements any of the concepts

discussed in this paper to manage the supply chain, the supply chainas a

phenomenon of businessstill exists. Thus, we draw a definite distinction between


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supply chains as phenomena that exist in business and the management of those

supply chains. The former is simply something that exists (often also referred to as

distribution channels), while the latter requires overt management efforts by the

organizations within the supply chain. Given the potential for countless alternative

supply chain configurations, it is important to note that any one organization can be part

of numerous supply chains. Wal-Mart, for example, can be part of the supply chain for

candy, for clothing, for hardware, and for many other products. This multiple supply

chain phenomenon begins to explain the network nature that many supply chains

possess. For example, AT & T might find Motorola to be a customer in one supply

chain, a partner in another, a supplier in a third, and a competitor in still a fourth supply

chain. Note also that within our definition of supply chain, the final consumer is

considered a member of the supply chain. This point is important because it recognizes

that retailers such as Wal-Mart can be part of the upstream and downstream flows that

constitute a supply chain.

Definitions of Supply Chain Management

Although definitions of SCM differ across authors, they can be classified into three

categories: a management philosophy, implementation of a management philosophy,

and a set of management processes. The alternative definitions and the categories they

represent suggest that the term supply chain management presents a source of

confusion for those involved in researching the phenomena, as well as those attempting

to establish a supply chain approach to management. Research and practice would be

improved if a single definition were adopted.


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SCM as a Management Philosophy

As a philosophy, SCM takes a systems approach to viewing the supply chain as a

single entity, rather than as a set of fragmented parts, each performing its own function.

In other words, the philosophy of supply chain management extends the concept of

partnerships into a multi firm effort to manage the total flow of goods from the supplier to

the ultimate customer. Thus, SCM is a set of beliefs that each firm in the supply chain

directly and indirectly affects the performance of all the other supply chain members, as

well as ultimate, overall supply chain performance. SCM as a management philosophy

seeks synchronization and convergence of intra firm and inter firm operational and

strategic capabilities into a unified, compelling marketplace force. SCM as an integrative

philosophy directs supply chain members to focus on developing innovative solutions to

create unique, individualized sources of customer value. Langley and Holcomb suggest

that the objective of SCM should be the synchronization of all supply chain activities to

create customer value. Thus, SCM philosophy suggests the boundaries of SCM include

not only logistics but also all other functions within a firm and within a supply chain to

create customer value and satisfaction. In this context, understanding customers values

and requirements is essential. In other words, SCM philosophy drives supply chain

members.


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Based upon the literature review, it is proposed that SCM as a management philosophy

has the following characteristics:

1. A systems approach to viewing the supply chain as a whole, and to managing the

total flow of goods inventory from the supplier to the ultimate customer;

2. A strategic orientation toward cooperative efforts to synchronize and converge intra

firm and inter firm operational and strategic capabilities into a unified whole; and

3. A customer focus to create unique and individualized sources of customer value,

leading to customer satisfaction.

SCM as a Set of Activities to Implement a Management Philosophy


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In adopting a supply chain management philosophy, firms must establish management

practices that permit them to act or behave consistently with the philosophy. As such,

many authors have focused on the activities that constitute supply chain management.

This previous research has suggested various activities necessary to successfully

implement a SCM philosophy.

SCM ACTIVITIES

1. Integrated Behavior

2. Mutually Sharing Information

3. Mutually Sharing Risks and Rewards

4. Cooperation

5. The Same Goal and the Same Focus on Serving Customers

6. Integration of Processes

7. Partners to Build and Maintain Long-Term Relationships

Bowersox and Closs (1996) argued that to be fully effective in todays competitive

environment, firms must expand their integrated behavior to incorporate customers and

suppliers. This extension of integrated behaviors, through external integration, is

referred to by Bowersox and Closs as supply chain management. In this context, the

philosophy of SCM turns into the implementation of supply chain management: a set of

activities that carries out the philosophy. This set of activities is a coordinated effort

called supply chain management between the supply chain partners, such as suppliers,

carriers, and manufacturers, to dynamically respond to the needs of the end customer.


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Related to integrated behavior, mutually sharing information among supply chain

members is required to implement a SCM philosophy, especially for planning and

monitoring processes. Cooper, Lambert, and Pagh emphasized frequent information

updating among the chain members for effective supply chain management. The Global

Logistics Research Team at Michigan State University defines information sharing as

the willingness to make strategic and tactical data available to other members of the

supply chain. Open sharing of information such as inventory levels, forecasts, sales

promotion strategies, and marketing strategies reduces the uncertainty between supply

partners and results in enhanced performance. Effective SCM also requires mutually

sharing risks and rewards that yield a competitive advantage. Risk and reward sharing

should happen over the long term. Risk and reward sharing is important for long-term

focus and cooperation among the supply chain members. Cooperation among the

supply chain members is required for effective SCM Cooperation refers to similar or

complementary, coordinated activities performed by firms in a business relationship to

produce superior mutual outcomes or singular outcomes that are mutually expected

over time. Cooperation is not limited to the needs of the current transaction and

happens at several management levels involving cross-functional coordination across

the supply chain members. Joint action in close relationships refers to carrying out the

focal activities in a cooperative or coordinated way. Cooperation starts with joint

planning and ends with joint control activities to evaluate performance of the supply

chain members, as well as the supply chain as a whole. Joint planning and evaluation

involve ongoing processes over multiple years (Cooper et al. 1997). In addition to

planning and control, cooperation is needed to reduce supply chain inventories and


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pursue supply chain-wide cost efficiencies. Furthermore, supply chain members should

work together on new product development and product portfolio decisions. Finally,

design of quality control and delivery systems is also a joint action.

La Londe and Masters proposed that a supply chain succeeds if all the members of the

supply chain have the same goal and the same focus on serving customers.

Establishing the same goal and the same focus among supply chain members is a form

of policy integration. Lassar and Zinn suggested that successful relationships aim to

integrate supply chain policy to avoid redundancy and overlap, while seeking a level of

cooperation that allows participants to be more effective at lower cost levels. Policy

integration is possible if there are compatible cultures and management techniques

among the supply chain members. The implementation of SCM needs the integration of

processes from sourcing, to manufacturing, and to distribution across the supply chain.

Integration can be accomplished through cross-functional teams, in-plant supplier

personnel, and third party service providers. Stevens identified four stages of supply

chain integration and discussed the planning and operating implications of each stage:

Stage 1) Represents the base line case. The supply chain is a function of fragmented

operations within the individual company and is characterized by staged inventories,

independent and incompatible control systems and procedures, and functional

segregation.

Stage 2) Begins to focus internal integration, characterized by an emphasis on cost

reduction rather than performance improvement, buffer inventory, initial evaluations of

internal trade-offs, and reactive customer service.


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Stage 3) Reaches toward internal corporate integration and characterized by full

visibility of purchasing through distribution, medium-term planning, tactical rather than

strategic focus, emphasis on efficiency, extended use of electronics support for

linkages, and a continued reactive approach to customers.

Stage 4) Achieves supply chain integration by extending the scope of integration

outside the company to embrace suppliers and customers.

Effective SCM is made up of a series of partnerships and, thus, SCM requires partners

to build and maintain long-term relationships. Cooper et al. believe the relationship time

horizon extends beyond the life of the contract perhaps indefinitelyand, at the same

time, the number of partners should be small to facilitate increased cooperation.

Gentry and Vellenga argue that it is not usual that all of the primary activities in a chain

inbound and outbound logistics, operations, marketing, sales, and servicewill be

performed by any one firm to maximize customer value. Thus, forming strategic

alliances with supply chain partners such as suppliers, customers, or intermediaries

(e.g., transportation and/or warehousing services) provides competitive advantage

through creating customer value.

SCM as a Set of Management Processes

As opposed to a focus on the activities that constitute supply chain management, other

authors have focused on management processes. Davenport (1993) defines processes

as a structured and measured set of activities designed to produce specific output for a

particular customer or market. La Londe proposes that SCM is the process of managing

relationships, information, and materials flow across enterprise borders to deliver


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enhanced customer service and economic value through synchronized management of

the flow of physical goods and associated information from sourcing to consumption.

Ross defines supply chain process as the actual physical business functions,

institutions, and operations that characterize the way a particular supply chain moves

goods and services to market through the supply pipeline. In other words, a process is a

specific ordering of work activities across time and place, with a beginning, an end,

clearly identified inputs and outputs, and a structure for action. Lambert, Stock, and

Ellram (1998) propose that, to successfully implement SCM, all firms within a supply

chain must overcome their own functional silos and adopt a process approach. Thus, all

the functions within a supply chain are reorganized as key processes. The critical

differences between the traditional functions and the process approach are that the

focus of every process is on meeting the customers requirements and that the firm is

organized around these processes. Lambert, Stock, and Ellram suggest the key

processes typically include customer relationship management, customer service

management, demand management, order fulfillment, manufacturing flow management,

procurement, and product development and commercialization.

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.


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Customer: 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 customers sales order will be combined with

other orders. The planning department will create a production plan to produce the products

to fulfill the customers 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 customers 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.


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Production: 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.

Supply Chain Management

To ensure that the supply chain is operating as efficient as possible and generating the highest level

of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management

processes and associated technology. Supply Chain Management has three levels of activities that

different parts of the company will focus on: strategic; tactical; and operational.

Strategic: At this level, company management will be looking to high level strategic

decisions concerning the whole organization, such as the size and location of

manufacturing sites, partnerships with suppliers, products to be manufactured and sales

markets.

Tactical: Tactical decisions focus on adopting measures that will produce cost benefits

such as using industry best practices, developing a purchasing strategy with favored
http://logistics.about.com/od/strategicsupplychain/a/strategic.htmhttp://logistics.about.com/od/tacticalsupplychain/a/tactical.htmhttp://logistics.about.com/od/tacticalsupplychain/a/tactical.htmhttp://logistics.about.com/od/strategicsupplychain/a/strategic.htm


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suppliers, working with logistics companies to develop cost effect transportation and

developing warehouse strategies to reduce the cost of storing inventory.

Operational: Decisions at this level are made each day in businesses that affect how the

products move along the supply chain. Operational decisions involve making schedule

changes to production, purchasing agreements with suppliers, taking orders from customers

and moving products in the warehouse.

Supply Chain Management Technology

If a company expects to achieve benefits from their supply chain management process, they

will require some level of investment in technology. The backbone for many large

companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such

as SAP and Oracle.

Since the wide adoption of Internet technologies, all businesses can take advantage of

Web-based software and Internet communications. Instant communication between

vendors and customers allows for timely updates of information, which is key in

management of the supply chain.
http://logistics.about.com/od/operationalsupplychain/a/operational.htmhttp://logistics.about.com/od/operationalsupplychain/a/operational.htm


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Importance of Supply Chain Management

Of late, supply chain management is gaining growing importance because of the following

reasons:

Thetotal 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 companys 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.

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.


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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.

Consequences of SCM

The motive behind the formation of a supply chain arrangement is to increase supply

chain competitive advantage defines two types of competitive advantage: cost

leadership and differentiation. According to Giunipero and Brand, improving a firms

competitive advantage and profitability through SCM can be accomplished by

enhancing overall customer satisfaction. By the same token, La Londe proposed that

SCM aims at delivering enhanced customer service and economic value through

synchronized management of the flow of physical goods and associated information

from sourcing to consumption. According to Porter, competitive advantage grows

fundamentally out of the customer value a firm creates, and aims to establish a

profitable and sustainable position against the forces that determine industry

competition. Thus, it is proposed that the implementation of SCM enhances customer

value and satisfaction, which in turn leads to enhanced competitive advantage for the

supply chain, as well as each member firm. This, ultimately, improves the profitability of

the supply chain and its members. Specific objectives to improve profitability,


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competitive advantage, and customer value/satisfaction of a supply chain, as well as its

participants, are suggested by several researchers. For example, a key objective of

SCM is to lower the costs required to provide the necessary level of customer service to

a specific segment. The other key objective is to improve customer service through

increased stock availability and reduced order cycle time. Customer service objectives

are also accomplished through a customer-enriching supply system focused on

developing innovative solutions and synchronizing the flow of products, services, and

information to create unique, individualized sources of customer service value. Finally,

low cost and differentiated service help build a competitive advantage for the supply

chain. As such, SCM is concerned with improving both efficiency (i.e., cost reduction)

and effectiveness (i.e., customer service) in a strategic context (i.e., creating customer

value and satisfaction through integrated supply chain management) to obtain

competitive advantage that ultimately brings profitability. If we distinguish between the

operational function of customer service and the resultant goal of customer value and

satisfaction, this discussion leads us to conclude the consequences of SCM are lower

costs and improved customer value and satisfaction to achieve competitive advantage.

Industry reports support this contention.

SCOPE

The scope of SCM is functional and organizational. The functional scope of SCM refers

to which traditional business functions are included or excluded in the implementation

and the process of SCM. The organizational scope of SCM concerns what kinds of


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inter-firm relationships are relevant to the participating firms in the implementation and

the process of SCM.

Functional Scope of SCM

Since process refers to the combination of a particular set of functions to get a specific

output, all of the traditional business functions should be included in the process of

SCM. The supply chain concept originated in the logistics literature, and logistics has

continued to have a significant impact on the SCM concept. In this context, Tyndall et al

propose that SCM logistics is the art of managing the flow of materials and products

from source to user. SCM-or the logistics system includes the total flow of materials,

from the acquisition of raw materials to delivery of finished products to the ultimate

users, as well as the related counter-flows of information that both control and record

material movement.

According to Lambert, Stock, and Ellram , however, there exist important differences

between the definition of supply chain management and the Council of Logistics

Managements definition of logistics: Logistics is the process of planning, implementing

and controlling the efficient flow and storage of raw materials, in-process inventory,

finished goods, services, and related information from point of origin to point of

consumption (including inbound, outbound, internal and external movements) for the

purpose of conforming to customer requirements. CLM apparently agreed, since its

new definition states, Logistics is that part of the supply chain process that plans,

implements, and controls the efficient flow and storage of goods, services, and related


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information from the point of origin to the point of consumption in order to meet

customers requirements (emphasis added). Thus, CLM has also distinguished between

logistics and supply chain management, and acknowledged that logistics is one of the

functions contained within supply chain management. Ross explains that the role of

logistics spans from warehousing and transportation to integrating the logistics

operations of the entire supply chain, whereas SCM merges marketing and

manufacturing with distribution functions to provide the enterprise with new sources of

competitive advantage. Logistics puts more emphasis on efficient movement and

storage to fulfill customer requirements. Customer value and satisfaction that help a

supply chain improve competitive advantage and profitability, however, require more

than logistics. Thus, Cooper, Lambert, and Pagh argued SCM is more comprehensive

than logistics so that SCM means the management of multiple business processes,

including logistics processes. Marketing research, promotion, sales, information

gathering, research and development, product design, new product development, and

total systems/value analysis should also be included.

We can conclude that the functional scope of SCM encompasses all the traditional intra

business functions.

Organizational Scope of SCM

According to Christopher, leading-edge companies have realized the real competition is

not company against company, but rather supply chain against supply chain. Cooper,

Lambert, and Pagh argue that organizational relationships tie firms to each other and


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may tie their success to the supply chain as a whole. In this context, a supply chain as a

whole may have its own identity and function like an independent firm. However, to

accomplish this ultimate supply chain, all companies in the supply chain must have a

supply chain orientation. The result is a fully managed supply chain. Ellram and Cooper

suggest that effective supply chain management is made up of a series of partnerships

among firms working together and mutually sharing information, risks, and rewards that

yield a competitive advantage. In the same article, Ellram and Cooper also contend the

successful supply chain relies on forming strategic partnerships with long-term

orientations. Christopher suggests a network of organizations, through upstream and

downstream linkages, as the organization for SCM. According to Webster, networks are

the complex, multifaceted organizational structures that result from multiple strategic

alliances. Thus, it is proposed that a network is a well-recognized organization for SCM.

The basic characteristic of a network organization is a confederation a loose and

flexible coalition guided from a hub where the key functions include development and

management of the alliances themselves, coordination of financial resources and

technology, definition and management of core competencies and strategies,

development of relationships with customers, and management of information

resources that bind the network. From this discussion, and given our earlier definition of

supply chains, we see the organizational scope of SCM as the implementation and

process of SCM across three or more companies, all of which must have a SCO. This

implementation and process must also include the systemic, strategic management of

the activities.


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CHAPTER -4

SUPPLY CHAIN DECISOINS AT MIL

SCM decisions can be classified into two broad categories -- strategic and operational.

As the term implies, strategic decisions are made typically over a longer time horizon.

These are closely linked to the corporate strategy and guide supply chain policies from

a design perspective. On the other hand, operational decisions are short term, and

focus on activities over a day-to-day basis. 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.

2. Purchase

3. Production.

4. Inventory.

5. Transportation (Distribution).

Location Decisions :

The geographic placement of production facilities, stocking points, and sourcing points

is the natural first step in creating a supply chain. The location of facilities involves a

commitment of resources to a long-term plan. Once the size, number, and location of

these are determined, so are the possible paths by which the product flows through to

the final customer. These decisions are of great significance to a firm since they


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represent the basic strategy for accessing customer markets, and will have a

considerable impact on revenue, cost, and level of service. These decisions should be

determined by an optimization routine that considers production costs, taxes, duties and

duty drawback, tariffs, local content, distribution costs, production limitations, etc.

Although location decisions are primarily strategic, they also have implications on an

operational level.

Meghmani is situated in GIDC area where they have fewer restrictions and regulations

by the State Government and Pollution Control Board as they have developed a

chemical plant. The factory is far from human locality, so it is less harmful to society.

Purchase Decisions:


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Flowchart for the working Process of Purchase Department

Inspection

Payment Process

IKR

If amount is paid

If not Paid

*PR- Purchase Requisition

*KR- Kachha Receipt

*IKR-Irregular Katcha Receipt

(Rejected Receipt)

Consumer Dept.

Raise the PR

Finance Dept.

Verification of Payment

terms & Payment

Mill Stores

Transporters

Will be finalized by

either Consignee or

Consignor

Float Enquiry &

Finalize the Party

Procurement or

Purchase Dept.

Pay Amount to theCustomer/ Party

Inspection for

Quality/

Specification

by Consumer

Dept.

Return to

Vendor (RTV)

Material

Rejection

Keep the Material

for Exchange

Kachha Receipt

KR


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Here at Meghmani Industries Ltd. all the Procuring activities are done by the Purchasing

department.

The Purchase Department arranges the requirement of the Consumer Departments.

These consumer departments will raise the Purchase Requisition (PR) for their

Requirement to purchase Dept.

The Purchase Dept. floats the Enquiry against the Indent.

Then according to the SOP (Standard Operating Procedures) they finalize the Party or

Customer.

Then the Transporter is been decided, it may be Contractual or Nominated by the Party.

Then it is updated in the software for approval from competent authority.

When all the concerned authorities approves, the Order will be raised.

When the consignment reaches at the Consignee (Manufacturing UNIT) it is been assigned

a Serial no. generated through software by Stores Dept.

Then it has to go through a process like entry at each level for example Gate Entry, Store

Entry.

Then the concerned Consumer Department people inspect the Inventory as per Quality or

Specification and confirm the acceptance.


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After acceptance of the material Stores will raise the KR. it goes through the Payment

Process where the Finance Dept. verifies the payment terms and payments and pays the

amount to the Customer.

If in Case it does not match with the Specification it is allotted an IKR (Irregular Kachha

Receipt).

When it is allotted IKR it goes to rejection stage where the Purchase Dept. check for

whether the payment has been made or not.

If it is been made the Inventories are kept for Exchange otherwise it is sent back the

Vendor which is called RTV (Return to Vendor).

Vendor Selection

Steps followed in Vendor selection are:

Step 1: Identification of company requirements.

Step 2: Search for the Vendors.

Step 3: Consideration of Vendor based on Infrastructure, financial status and Good

will of the Vendor

Step 4: Receiving Vendor Profile

Step 5: Vendor Selection Criteria

Previous experience and past performance with the product / service to be

purchased.

Relative level of sophistication of the quality system, including meeting regulatory

requirements or mandated quality system registration (for example, ISO 9001, QS-

9000).


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Ability to meet current and potential capacity requirements, and do so on the

desired delivery schedule.

Financial stability.

Technical support availability and willingness to participate as a partner in

developing and optimizing design and a long-term relationship.

Total cost of dealing with the supplier (including material cost, communications

methods, inventory requirements and incoming verification required).

The suppliers track record for business-performance improvement.

Total cost assessment.

Step 6: Final Selection of Vendor based on 3 Trial orders.

Step 7. Vendor rating as A,B,C and feedback and training.

Quality standards are fixed for each product of the vendor according to Quality Assurance

department.

Rejected raw materials are returned to vendor and vendor has to bare all the costs.

Vendor codes are given for financial transactions.

Company selects new vendors only in the following cases:

o In case of increase in Production.

o In case of New product development- where the existing vendor fails to supply required

raw materials.

o Misunderstandings between the company and the Vendor in payments.


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o Company finds new vendors through the people of purchase department, Yellow

Pages and through Internet.

Risks involved in Vendor selection are:

o New Supplier Risk- Incase of new suppliers. Vendor has to adjust for the company

standards.

o Business Risk- Improper supply of quality raw materials.

o Time Risk- Delay in Delivery Time of raw materials. This is the main part of

purchasing.

Process of Negotiation:

Company is finalizing the price for raw materials.

Calculation of project cost and process cost which forms working cost is calculated and

finalized by Costing department.

Based on the working cost; Negotiation process is carried out.

Purchase Department is carrying the Negotiation process.

Before receiving the raw materials, negotiation is carried out.

Negotiating price ranges from +or -10% of the companys quoted price.

5% is the profit fixed by the company on all its finished goods.

Percentage of discount available for the company for early payment

Days Percentage

30 2%


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InventoryDecisions

These refer to means by which inventories are managed. Inventories exist at every

stage ofthe supply chainas either raw materials, semi-finished or finished goods.

They can also be in-process between locations. Their primary purpose to buffer against

any uncertainty that might exist inthe supply chain. Since holding of inventories can

cost anywhere between 20 to 40 percent of their value, their efficient management is

critical in supply chain operations. It isstrategicin the sense that top management

sets goals. However, most researchers have approached the management of inventory

from an operational perspective. These include deployment strategies (push versus

pull), control policies --- the determination of the optimal levels of order quantities and

reorder points, and setting safety stock levels, at each stocking location. These levels

are critical, since they are primary determinants of customer service levels.

Scenario at Meghmani :

Company occurs high inventory cost and hence it is a major cost driver for it. As

company purchased many type of chemicals from abroad they occur large cost of

importing materials, not only that they have to keep a high amount of buffer stock.

Moreover the cost of preventing material from direct sunlight, humidity etc.

MIL has its own warehouse.

The dimension of warehouse is 40/100ft

Number of warehouse employs are as follow


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Officers 3

Clerks 2

Workers 8

Total 13

Tools used in warehouse

o Cranes

o Pallet trucks

o Handling equipments

o Chain, pulleys, roaps

To maintain warehouse equipment and MIL has given contract.

The process of receiving raw materials from vendors

Step 1: Cross verification of Invoice

Step2: Materials testing from QAII (Quality Assurance of Incoming Inspection) by

Inspectors.

Step3: Unloading

The process of dispatching raw materials from stores

Store

Process

dept 1

Process

dept 4

Process

dept 3

Process

dept 2

Supervisor1

[indent]

Supervisor3

[indent]

Supervisor

3 [indent]

Supervisor

2 [indent]


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To get raw material from stores supervisor of particular department only have authority.

In stores without indent raw material has not provide.

Inventory are broadly categorized into 4 types based on their Nature and Requirement

which are as follows-

BERT

B (Block) - In this category comes all the materials which require a lots of capitalization, Time

for Implementation and lots of human effort to carry forward the task. This kind of Inventory is

been purchased by knowing of the top management or we can say it is their decision to purchase

or acquire that particular Inventory. Some Example of this kind of Inventory is New Machinery,

New Equipment, and New Technology for Production etc. These are one time activity. For this

kind of inventory only the top management can raise the PR.

E (Essential) In this category as the name suggests all the essential items come that can be

used for continues, without interruption Production. For example spare parts of machinery, Raw

material etc. But there is level for both maximum and minimum essential inventory which

should be maintained. For this kind of inventory a particular consumer department can raise the

PR (Purchase Requisition) for a particular use.

R (Regular) In this category all the regularly consumed items that are being needed every

time comes. It can be consumed by every department for which the store generates the PR

through a sub inventory. There is a maximum and minimum level for these inventories. To raise

the PR the Lead Time and Consumption value are taken into consideration and the ABC

analysis is being done.


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T (Temporary) All the inventories that are of temporary requirement comes under this

category.

There is also a special category which is not included but has some importance in

Inventory Handling which is described as below.

S (Surplus) - All the inventories can be converted to this category because any inventory which

is of further no use or less required in future can be categorized in it. For example after

implementing new production technique by establishing new machinery all the spare parts of

old machinery is of no use. So these inventories can come to this category. Thus these

inventories become a dead asset for the company and contribute nothing to the company. So to

use it effectively the concerned Store in charge circulates a mail to other Units of the companyto take and use them as per their requirements.

Transportation Decisions

The mode choice aspects of these decisions are the more strategic ones. These are

closely linked to the inventory decisions, 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. While air shipments may be fast, reliable, and

warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may

be much cheaper, but they necessitate holding relatively large amounts of inventory to

buffer against the inherent uncertainty associated with them. Therefore customer

service levels, and geographic location play vital roles in such decisions. Since

transportation is more than 30 percent of the logistics costs, operating efficiently makes

good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot),


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routing and scheduling of equipment are key in effective management of the firm's

transport strategy.

The main plant of Meghmani is situated at Chharodi; far from any big city, the

transportation cost is very high. Company has to hire containers for inward and outward

materials. Company prefers shipping by sea to reduce transportation cost for exporting

and for domestic market it hires domestic logistic service providers.

Including transportation cost quotations are prepared by the MIL and suppliers are responsible for

transporting the raw material to the warehouse of the company.

From the warehouse to the layout of production to transport material Cranes are used which

are company owned.

Price will fix based on distance, weight and type of vehicle or 5% margin.

CHAPTER -5

FINDINGS

Facility and location :

Both the units are situated in GIDC areas

Decentralized location focusing on production facilities.

Optimal capacity utilization by manufacturers to serve expected forecasted

demand.


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Process :

Operational designs to make finished product-product focus.

At every phase of manufacturing, the wastage is very low.

Company provides protections like mask, gloves and special equipments to

their workers for safety.

The wastage is very hazardous and harmful, so they have developed special

plant to destroy hazardous chemicals and to reduce its effects.

Inventory

Make to stock decisions.

Production decisions are based on long term forecast. Typically, the

manufacturer uses orders received from retailers warehouses to forecast

customer demand.

A disciplined approach to planning and scheduling of inbound requirements.

Transportation :

Each player has its own logistic management.

Transportation is through outside transport agencies.

Speed is less and cost is also less.

Information :


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Selective information sharing-push strategy

Technology

A bit role played by technology

Reasons for not using the Technology Driven supply chain management

Channel conflict : relationship with supplier

Cost benefits analysis + upgrading equipment and system

Training issues

System failure

Reliance, too much dependence, should have backup systems

Human error, fiddling system

Market structure

The whole business of the players in the Chemical industries is dependent on the

relationship with the respective partners.

From total production 70% is exported in other countries.

Company also enjoys good share in domestic market.

In domestic as well as international market company uses push strategy to sale

its product.


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CHAPTER -6

RECOMMENDATIONS / SUGGESTIONS

Company should look for joint venture or strategic partnership with other

companies to reduce procurement costs.

Company can outsource the production of some of the raw materials and reduce

the production cost.


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Company has to pass on the price of increasing raw material to its customers.

Company should develop green environment at its Chharodi plant to reduce the

effects of pollution.

ERP system is implemented but not fully utilized so company should provide

training.

Product design and packing should make more attractive.

CHAPTER - 7

BIBLIOGRAPHY

Books :

B.M. Chaturvedi, Supply chain management An introduction, ICFAI books.

B.M. Chaturvedi, Supply chain management Efficiency and performance

measurement, ICFAI books.


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Web links :

http://www.meghmanidyes.com

www.yahoo.com
http://www.meghmanidyes.com/http://www.yahoo.com/http://www.meghmanidyes.com/http://www.yahoo.com/

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Supply Chain Management at Meghmani

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