Supply Chain Management

(At Sage Metals Ltd. ) (Mfg. Co.)

Submitted in Partial Fulfillment for the Award of the Degree of MBA 2019-2021

Submitted By: Santosh kumar

University PRN : 1928100049

BHARATI VIDYAPEETH DEEMED TO BE UNIVERSITY, PUNE

SCHOOL OF DISTANCE EDUCATION, PUNE
Academic Study Center - BVIMR, New Delhi
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade “A” University

Page no. 01
 Format of Student Undertaking Certificate of Originality

I Santosh kumar, Course-MBA and Semester - I would like to declare that the
project report entitled " Supply Chain Management " Submitted to Bharati
Vidyapeeth University Pune, School of Distance Education Pune, Academic Study Centre
BVIMR New Delhi in partial fulfillment of the requirement for the award of the degree.

It is an original work carried out by me under the guidance of _

All respected guides, faculty member and other sources have been properly acknowledged
and the report contains no plagiarism.

To the best of my knowledge and belief the matter embodied in this project is a genuine
work done by me and it has been neither submitted for assessment to the University nor
to any other University for the fulfillment of the requirement of the course of study.

MR. SANTOSH KUMAR

Student Name with Signature

ACKNOWLEDGMENT

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Project report inculcates applied elementary creative thinking/working. It gives us immense
pleasure to prepare this study on “Supply Chain Management at Sage metals ltd. ”.This learning
has many contours and impacts. This learning has many contours and impacts. I wish to express
my deepest gratitude for all those people who made this project possible. I am indebted to
BVUSDE honourable Director Mr. A. R. Deshmukh without whom co-operation the project would
have not been possible. Also I would like to express my profound sense of gratitude to the project
guide Ms. Surinder Kaur Walia for guiding me as well as providing me the support to conduct this
project.
Last but not the least, I take this opportunity to thank all the library members of BVIMR, New
Delhi, respondents, friends, and my parents without their concern and cooperation this project
would have not been possible.

NAME OF THE STUDENT:

Santosh kumar

Table of Contents

S. No. Topics. Page. No.

Page no. 3
● Chapter 1 : Introduction to the topic. 07
Related To Subject,
Objective and Vision of Projects,
Limitations of the Project,Literature Review

● Chapter 2 : Research Methodology. 20

Research Design (Exploratory, Analytical etc.)
Primary and Secondary data
Instruments for Data Collection.
Method for Data Collection

● Chapter 3 : Findings & Analysis. 27

● Chapter 4 : Conclusions 32
● Chapter 5 : Recommendations / Suggestions 33
● Chapter 6 : Limitations of the Study. 35

● Executive Summary

Page no. 4
 A. Objectives

This project primarily identifies the supply chain (SC) problems commonly faced by

manufacturing firms like Sage metals ltd. and their impacts on pricing strategy to the entire SC. A
range of solutions

are suggested to address these problems, furthermore the applicability of each of these solutions

significantly depends on their social ramifications that are systematically evaluated.

B. Methods and data sources

A series of research studies were conducted and the information presented in the entire paper is
abstracted from a variety of authoritative data sources, namely, scientific and practitioner
literature, and survey-based reports.

C. Key findings

was identified that the major problems commonly faced by manufacturing firms were:

• Supply disruption risk acts as a logistical impediment;

• Inaccuracy and inconsistency of information breed inefficiency between SC entities;
• Uncertainty in supply and demand jeopardises the decision making capabilities of
manufacturing firms; and
• Regulatory compliance stagnates the dynamism of the SC.

D. Conclusion

Several solutions are suggested to address these problems. Firstly, supplier disruption risk can be
remedied by utilising various suppliers and global outsourcing. Secondly, information integrity
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can be enhanced by standardisation and embracement of new technology. Thirdly, planning of
supply and demand can be improved by organisational leadership, SC and value re-engineering
and multi-enterprise collaboration. Finally, regulatory compliance can be addressed
byestablishing a total risk management culture for total quality management.

UNIT - 1 INTRODUCTION

Page no. 6
 ● Introduction

Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products. It involves the active
streamlining of a business's supply-side activities to maximize customer value and gain a
competitive advantage in the marketplace. SCM represents an effort by suppliers to develop and
implement supply chains that are as efficient and economical as possible. Supply chains cover
everything from production to product development to the information systems needed to direct
these undertakings.

Supply chain forms the base foundation and without it, businesses can hardly survive. Contribute
to your business growth by becoming a supply chain professional with a supply chain
management certification.

The shared goal of all the individual supply chain components is to deliver the best value to the
end customer. Retailers are closer to the customers and are the ones who get the customer
feedback. In a supply chain, this feedback can be shared with the manufacturers to address any
problems and foster a win-win situation for all. Customers recognize the value and making quality
improvements is the prime goal for the supply chain.

Enable Financial Success

One of the most important goals of the supply chain is to pitch in towards the financial success of
the organization. From cost efficiency to reduced inventory costs, minimal labor expenses and
decreased logistical costs, the supply chain has the power to push things forward. Apart from this
it also enables to improve sales, access new markets and enhance differentiation. Supply chain
acts like an engine to pull all major business units towards delivering value to the customers.

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Stability
Now, that we have taken care of lasting supply chain relationships, customer satisfaction and
financial success, the fourth major goal of the supply chain is to promote long-run stability.
Collaborative planning and undertaking of all activities right from the inception to the delivery of
the final products enable the business to thrive under any condition. The result is optimization
and balance in meeting the needs the customer.

Change Management
Last but not the least, today’s market is rapidly changing given the volatile conditions. A flexible
supply chain management system will help to leverage opportunities and weigh down potential
threats by anticipating changes and adapting to them.

Supply chain management aids in the end to end process of the business and is indeed a
backbone that supports major activities. Learn all the nuances of the supply chain and deliver
value by opting for a supply chain management certification today

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A supply chain is the connected network of individuals, organizations, resources, activities, and
technologies involved in the manufacture and sale of a product or service. A supply chain starts
with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of
the finished product or service to the end consumer. SCM oversees each touch point of a
company's product or service, from initial creation to the final sale. With so many places along the
supply chain that can add value through efficiencies or lose value through increased expenses,
proper SCM can increase revenues, decrease costs, and impact a company's bottom line.

For example, the company can anticipate flu patterns, which allow it to accurately forecast
needed inventory for over-the-counter flu remedies, creating an efficient supply chain with little
waste. Using this SCM, the company can reduce excess inventory and all of the inventories'
associated costs, such as the cost of warehousing and transportation.
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 ● Objective and Vision of Supply Chain Management

1. To enhance your company's productivity and efficiency, as well as the overall bottom line,

it is important to focus on supply chain management, or SCM. Supply chain management

is a collaborative approach to getting the goods or services from your company to

consumers. Several goals and objectives of supply chain management help you gain a

competitive advantage in your marketplace: collaborative efficiency, optimized logistics,

quality improvement and long-term stability with an overall outcome of creating a supply

chain that is as productive and profitable as possible.

2. Working to Ensure Efficiency

Managing inventory, transportation and logistics can be complex and costly for your company if

you do not have an effective SCM system. When manufacturers, wholesalers and retailers

collaborate on a supply chain system, it is easier for your company and your partners to ensure

efficiency. For example, you could share inventory data with your supplier and vice versa. This

allows for fast replenishment of inventory to meet customer demand. That efficiency in getting

goods to the right place at the right time minimizes inventory costs and meets customer demand.

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 3. Optimized Transportation and Logistics

A key component of supply chain management is addressing transportation and logistics within

your company. In an independent business environment, each company is responsible for its role

in ordering, shipping and transporting goods, but costs are high and timing is poor. With supply

chain management, you, as the vendor or buyer, can plan optimized transportation and logistics

activities with the vendors and buyers you work with. Orders are automated between a reseller

and a vendor, and vendors quickly pull, ship and transmit orders to buyers for clear

communication.

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4. Working on Quality Improvement

Keep in mind that providing consumers with the best value is a goal shared by you and your

supply chain partners. The more closely connected you are with those partners, the more likely

you are to improve the overall quality of the consumer experience. Retailers, as the most direct

link between consumers and goods, are the ones who often hear feedback about product quality.

In a collaborative supply chain, create a system for those retailers to communicate customer

feedback to your company and to other partners in the supply chain. This invaluable feedback

enables you to address any issues or deficiencies and to focus on constant improvement of

products. This creates a win for all those involved in the supply chain because consumers

recognize and appreciate value.

5. Financial Benefits: Profit and Profit Margin

Adding value that customers desires promotes increased sales, which improves the bottom line.

In order to be successful and have longevity, any organization must have a positive cash flow.

* Triple Bottom Line (TBL)

Term coined by John Elkington 1994.

This refers to the concept that corporate success should also be measured in 3 dimensions:

Economic

Social

Environmental

6. Measuring Value One Stakeholder at a Time

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When planning any new supply chain activity or monitoring continuing practices, it is important to

identify all the stakeholder groups and determine the impact the activity will have on each one.

a. The primary stakeholder in any business is the business itself. A business must be

profitable to survive and create value for any other stakeholder group.

Customers are also significant stakeholders in supply chain. Each business must create

value for its customers as well as profits for itself. Moreover, the end result of each

partner’s activities must optimize value for the supply chain as a whole.

b. There are also stakeholders that are external to the supply chain’s business partners and

end customers. These include public or private investors, lenders, and communities and

governments. To investors and lenders, supply chain value may be defined as capital

growth, dividend income, or interest payments and eventual return on invested capital.

Value as defined by these external partners must be considered when making business

decisions.

c. Communities and local governments may also feel the impact of supply chain operations

because they affect community members and their environment, both built and natural.

The location of a retail outlet, warehouse, or other supply chain facility will have impact on

the community where it is built and maintained. The community, and its political

leadership, may judge this impact to be a positive value or a detriment.

7. Green, Sustainable Supply Chain Management

a. One value that is important to most of these groups is sustainable manufacturing

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 process and practices, because it impacts so many around the globe.Green Supply Chain

Management (GSCM)has been brought to the forefront of most companies’ strategic

goals in response to the demands from customers and stakeholders.

b. The objective of supply chain sustainability is to create, protect and grow long term

environmental, social, and economic value for all stakeholders involved in bringing

products and services to market.Today GSCM requires supply chain managers to

integrate environmental thinking into each step within the supply chain. That means

that they must employ innovative environmental technologies to provide practical

solutions to the environmental problems facing the global community.

c. (Definition) Green Supply Chain is a supply is a supply chain that considers

environmental impacts on its operations and takes action along the supply chain to

comply with environmental safety regulations and communicate this to customers and

partners.

d. Sustainability figures significantly in supply chain management decisions for the

following reasons:Government and regulatory pressures.Good environmental

management andsustainability concerns.Public opinion and power of consumer

choice.Potential for competitive advantage.

e. In addition to adding value, sustainable supply chain management can make good

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 businesssense, which can:Drive growthReduce costs

Without forward looking environmental and social policies and supply chain practices,

and organization’s reputation may suffer among investment analysts.

Supply chains must create three types of values:FinancialCustomerSocial

● Limitations of Supply Chain Managment

1. Mismanaged Implementation –

Changing a supply chain management system takes financial investment, time, and human

resources. If not implemented properly, there will be wasted labor, service redundancy, and

missed deadlines that result in significant costs.

To avoid these unnecessary costs, high-quality logistics providers always complete a thorough

analysis before implementing changes to the supply chain. This ensures that they fully

understand the client’s freight schedule, consolidation opportunities, and last-mile logistics needs

before developing and implementing a new system.

2. Inadequate Training –

Integrating a new system into a working supply chain is complex and often requires restructuring

and team-member training. This process must include detailed planning and clear, meaningful

communication, or it could result in costly mistakes and excessive employee turnover.

If searching for logistics providers, always inquire about the training process and the usability of

their tools and technology. An experienced provider should start with a clearly defined

onboarding or transition process that can then be customized to fit unique teams and timelines.
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 3. One & Done Mentality

Short-sighted logistics providers (focused on ‘getting the contract’ and nothing more) miss out on

consolidation opportunities and other ways to improve their clients’ supply chain efficiency. The

initial savings are realized, but any additional savings or growth opportunities get neglected. A

company that relies on this type of provider will eventually fall behind their competitors and may

not even realize why.Industry-leading logistics providers focus on continual analysis. They are

always looking for new ways to reduce their clients’ supply chain expenses or improve frequency

and effectiveness.

4. Sometimes Supply Chain Management can be very expensive to implement.

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5. Competitors can easily copy the strategy of Supply Chain Management.

6 For better Supply Chain Management, proper skills and experience is required to achieve

success.

4. Sometimes in Supply Chain Management various functions may be difficult to manage.

5. In Supply Chain Management there may be staff resistance.

6. Advanced Analytics

Advanced analytics is the requirement to leverage available data to identify opportunities for

improvement and optimization using complex algorithms and cutting edge solver technologies.

Most enterprise planning systems just do not incorporate these algorithmic technologies, which

means that companies have been forced to employ teams of data scientists using special tools to

attain that next level of process optimization.

The problem is that good data scientists are in short supply and high demand, and the tools they

use are not designed to be accessed and deployed to business users throughout the company.

This makes it difficult to scale the solution throughout the enterprise, and even more difficult to

sustain as a long-term business solution.

Page no. 17
 ● Literature Review

Literature portrays logistics and SCM practices from a variety of different perspectives with a

common goal of ultimately improving performance and competitiveness. Based on

literature, we find that the important supply chain practices concerns are mainly related to:

1. Supply Chain Collaboration and Partnership with various stakeholders such as the product

developers, suppliers, channel partners and end-users.

2. Supply Chain Structure including facilities network design taking into account related

transportation and logistics.

3. Forecasting and Demand Management to cope with supply chain complexity in a cost-

effectiveand delivery-efficient way.

4. Use of Information and Communication Technologies (ICT) to facilitate the above. While there

is plenty of published literature that explains or espouses SCM, there is a dearth of empirical

studies examining logistics and SCM practices. Galt and Dale (1991) study ten organizations in the

UK and find that they are working to reduce their supplier base and to improve their

communications with the suppliers. Fernie (1995) carries out an international comparison of SCM

in the grocery retailing industry. He finds significant differences in inventory held in the supply

chain

Page no. 18
by the US and European grocery retailers, which could be explained by difference in degrees of

their SCM adoption. Tan and Wisner (2000) compare SCM in the US and Europe. Tan (2002)

relates SCM practices and concerns to firm’s performance based on data from US companies.

Helists nine important supply chain concerns such as lack of sophisticated ICT infra-structure,

insufficient integration due to lack of trust and collaboration among the supply chain stakeholders

and thereby lack of supply chain effectiveness and efficiencies. Basnet et al. (2003) report the

current status of SCM in New Zealand, while Sahay et al. (2003) discuss supply chain strategies

and structures in India. These surveys rank the perceived importance of some SCM activities,

types of hindrances and management tools on the success of SCM using representative samples

mostly from manufacturing. Quayle (2003) surveys supply chain management practice in UK

industrial

SMEs (Small Manufacturing Enterprises) while Kemppainen and Vepsalainen (2003) probe

current SCM practices in Finnish industrial supply chains through interviews of managers in

six supply chains. They analyze the change of SCM both in terms of operational practices and

organizational capabilities. Chin et al. (2004) conduct a survey that examines the success factors

in developing and implementing supply chain management strategies for Hong Kong

manufacturers. Moberg et al. (2002) state that there is little literature on information exchange.

Feldmann and Muller (2003) examine the problem of how to establish an incentive scheme to

furnish reliable and truthful information in supply chains. There is little literature on logistics and

SCM practices in India. Available literature focuses either on the best practices (Joshi and Chopr

Page no. 19
UNIT - 2 RESEARCH & ANALYSIS ON SUPPLY MANAGEMENT SKILLS

● Supply chain management in Manufacturing industry (Sage metals Ltd.)

Data collection:

2.1 Data collection:

As this research was exploratory in nature, the report has been written based on both the primary

as well as the secondary form of information. The details of these sources are highlighted below:
Primary Sources: Primary data were the collected data directly from the officials. I have
discussed the aspect of the relative supply chain activities to the related executive official and
used their responses as primary data. Also I am having an internship in that organization for three
long period of time in the commercial department. This department control all the supply chain
activities. My working experience I also a source of my primary data in this report.
Secondary Sources: The secondary data were, company’s yearly business review report,
marketing report, annual budget, in-house training material, company manual, internal meeting
minute, text book and information from internet etc.

2.2 Research design and Philosophy

The research is designed in such a way that the reader of this can easily get an idea of the entire
message of the report very easily. Here the data that are used to complete the research are
collected from the both primary and secondary source. There only qualitative data is used to
climb the stair of the decision because of the nature of the subject itself. The research philosophy
followed here is pragmatism philosophy. Pragmatism is a rejection of the idea that the function of

Page no. 20
thought is to describe, represent, or mirror reality.
Instead, pragmatists develop their philosophy around the idea that the function of thought is as
an
instrument or tool for prediction, action, and problem solving. Pragmatists contend that most
philosophical topics. Such as the nature of knowledge, language, concepts, meaning, belief, and
science, are all best viewed in terms of their practical uses and successes rather than in terms of
representative accuracy. (Baert, P. 2004)

2.3 Limitation

It is important to stress several limitations of the research method used for this research:
Since the research is limited in time and resources, it was impossible to perform an in-
depth research into all the aspects for all supply chain activities of all the consumer goods
business companies of American . Rather, I had to be contended with focusing on the
supply chain activities of the Sage Metals ltd.
Lack of sufficient sources prevented verification of information.
Some aspects of the report may be considered confidential by the organization.
Due to lack of experience, there may have been faults in the report though maximum
labors have been given to avoid any kind of slip-up.

SC management constitutes the series of interdependent upstream, manufacturing and

downstream processes targeted at transforming raw materials into products to meet customer
demand.

Page no. 21
In the backdrop of global markets, increased competition and extended SCs manufacturing firms
are now confronting new challenges. The need to eliminate waste, embrace new technologies,
improve on supplier/ customer relations, better manage inventory, comply with regulation, and
be
more cost efficient is becoming more apparent in the quest to achieve operational excellence.
Most manufacturers compete in oligopolistic markets where it is necessary to consider
competitive behaviour before devising a pricing strategy. Furthermore, pricing strategies in SC
management brings into context the value chain where it is necessary consider the value added
through each process of the chain and the value perceived by customers.

In the backdrop of global markets, increased competition and extended SCs manufacturing firms
are now confronting new challenges. The need to eliminate waste, embrace new technologies,
improve on supplier/ customer relations, better manage inventory, comply with regulation, and
Page no. 22
be
more cost efficient is becoming more apparent in the quest to achieve operational excellence.
Most manufacturers compete in oligopolistic markets where it is necessary to consider
competitive behaviour before devising a pricing strategy. Furthermore, pricing strategies in SC
management brings into context the value chain where it is necessary consider the value added
through each process of the chain and the value perceived by customers

1. Problems & Risk

a. Supply Chain disruption poses technical or behavioural problems for manufacturers.
Technicalproblems include equipment malfunctions, system failures, and financial distress;
whilelabourstrike and human fraud are behavioural problems. In addition, disruption may
occur from otheruncontrollable events such as natural disasters and terrorism.
b. Since there are strong connections among components of the SC itself, the effect of a SC
disruption will have differing levels of impact on each element of the SC4. If the
interruptioncannot be addressed immediately, it will lead to some malfunctions of
manufacturing activities.Interruptions take place at the first two stages of the chain will
eventually affect the distribution function.

c. To demonstrate how pricing strategies are affected by supply disruption, three elements
that
influence that pricing decision need to be considered: marketing positioning, customer
value.

d. competitor behaviour5 Firstly, the market position of the manufacturer who suffers from
the disruption risk will change due to the loss of market share and inventory. Secondly, the
economic value to customer (EVC) of the manufacturer’s product might be reduced due to
attacks of competitors. As a whole, the pricing strategy of the manufacture is influenced

Page no. 23
 by Market research & competitive other.

● Information integrity

a. As e-commerce increasingly becomes a crucial tool for information sharing and SC

integration a major problem for any organizations is the risk that information becomes,
inaccurate, incomplete and unsynchronised.

b. Betts (2001) demonstrates the problem through the various ways in which a particular
supplier or customer such as IBM can be entered into a SC software as either:
• IBM Corp
• I.B.M Corporation, or
• International Business Machines Corp.
● Incomplete and unsynchronised information can arise from the different data formats
operating under different information systems within the SC8. In information sharing SC
networks, when corrupt or false information generated from one part of the SC is passed
alongthe SC all entities will be affected both internally and externally9

• A products resource consumption;

• The effectiveness of deployed capital;
• The economic contributions of entities within the SC

In the case of inconsistent information such as the IBM example, the organisation will be unable
to determine the correct value of business conducted with its suppliers and customers ultimately
limiting its capacity to negotiating favourable trading deals or volume discounts11. Consequently,
organisations using substandard information results in sub-optimal pricing strategies,
diminishing competitive advantage and lower market share.
Page no. 24
 ● Forecasting of Demand

Push production is based on forecast demand and pulls

production is based on actual or consumed demand. In general, Sage uses Push production
through Statistical forecasting techniques to forecast future demand. Statistical forecasting
techniques provide an insight into historical and seasonal trends, and help to evaluate the impact
of promotional activities. But Sage recognized that statistical forecast can act only as a guideline
and the best forecast is one that is arrived at through Collaboration of all concerned parties. The
demand planning solution provides a base statistical forecast and a framework for collaboration
and monitoring with the retailers. Mat Plan is the in house software to run the supply chain
activity of Sage smoothly.

● Approved Vendor List:

Commercial Department maintains a vendor list of Raw Material and Packing Materials according
to prescribed format of international Standard Organization. Such vendor list needs to be
approved by Quality Analyst. Commercial alsomaintains a vendor list for Finished Goods and
repacking items. Such vendor list needs to be approved by Business unit or quality analyst.

● Preferred Supplier:

The items which required special design or process to follow, Commercial can consider preferred
supplier concept of selecting and authorizing a supplier based on the cost, reputation, reliability
and timeliness. For considering a supplier as preferred supplier, detail item wise cost analysis with

Page no. 25
regular review is done. After that an agreement is done with such supplier.

● Vendor Profile: Commercial department prepares vendor profile containing the following

1. Details address of Vendor

2. Name of contact person with detail address

3. List of product

4. Financial strength

5. List of other companies they supply

6. Address of factory

7. Purchase history of Sage from this supplier

8. Non Compliance Report, Problem notification and other Quality Analysis report

regarding this supplier

9. Claim status.

Page no. 26
UNIT - 3 Findings & Analysis

● Critical Findings:

1. This is the overall question for the employers we can see that 40% employees

at commercial department are not satisfied working on ACI Limited. There are

some

2. A large number of LC amendment is happened which is related with the cost

3. A problem arise for selecting the product HS code which is related with the

customs duty

4. The shortage of IT knowledge among the employees at the commercial

department that reduce the smoothness of the work performance

5. There is no central database of the suppliers. So the information’s about the

employers is not available

6. Cargo for carrying the goods is not available and most of the goods are transported by

local

● Quality Analysis Report:It is to be expected that, QA will test the material within 15 days

from

the GRN date. Any major anomaly found by QR should be addressed to Commercial

immediately. Based on anomaly found, commercial will raise and resolve claim following

Page no. 27
 previous two procedures. QA should notify commercial and Finance in case of any

anomaly

immediately for any insurance claim.NCR and Test Report:Purchaser will try to supply all

the documents required as per Quality

● Analyst Standard Operation Procedure for test purpose. ln case of problem notification for

missing parameter in Certificate of Analysis, purchaser should immediately communicate

with the supplier to update Certificate of Analysis as per problem notification. In case of

NCR (Non Compliance Report), supplier should be informed to take necessary corrective

and preventive measure (CAPA). And claim should be raised and resolved in case of NCR, if

required.Expiry Items:Based on expiry report from QA, Commercial should raise re-

evaluation request as per Quality Analysis Standard Operation Procedure. Business and

production should be requested to use material before expiry. Business will check whether

ROFO can be changed to

use said material and production will check whether production can be done in advance as

per ROFO. In the meantime, purchaser should also request supplier to provide necessary

document conduct the test of material after expiry. In case, material is rejected and

unusable, purchaser will check MRP for any future requirement.

● Block List Approval: Purchaser will regularly communicate with concerned

perresponsiblefor Block list approval. Any requirement for Block List amendment and New

Block List should be raised by concerned purchaser immediately. Purchaser will check the

availability of prior approval on a Block list before opening any new L/C. No L/C is allowed

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 to open in case of unavailability of Block List approval from Drug Administration Authority.

Purchaser will also check the availability of recipe approval for such item.

● Procurement from Exclusive Supplier: Before making any supplier exclusive,

Business/Commercial needs to justify the reason for making such supplier exclusive. An

agreement needs to be done with such supplier. Such agreement needs to be validated by

Business, Commercial, Finance and Legal.

● Business UNIT Or Quality Analyst will validate the quality of product. Commercial will

negotiate the price with such exclusive supplier before any agreement takes place. There

should not be any price agreement.

● Commercial department will negotiate price before each purchase and make comparison

with other suppliers. Based on the agreement, Business will raise requisition or ROFO to

Commercial to negotiate price and open L/C after checking inventory status.

● Commercial will check NOC and other necessary requirements as per SRO or import

policy. Business will be responsible to collect such NOC.

● New Product Development: Product development is critical to the continuing success of

the

firm. Developing new products quickly and getting them to the marketplace in an efficient

manner is a major component of corporate success.

A. The exact Time to market the new product is a critical objective of this process. As product

Page no. 29
 life cycles shorten, the right products must be developed and successfully launched in

ever-shorter timeframes in order to remain competitive.

B. Business will propose for new product or recipe to Product Development team in

prescribed format of ISO instruction. While proposing a new product or line extension of

existing products, detail market study, cost estimation, CAPEX requirement along with

financial projection is done with Finances' assistance.

C. Upon proposal from Business, Product Development or Quality Analyst requests

commercial to arrange sample for QA and PD test .Commercial arranges required sample

quantity and all documentation as per specification provided by quality analyst .they test

sample and send the remaining quantity to PD if sample is found satisfactory. PD will

initiate stability test as required by lSO.After satisfactory result, PD will raise the

requirement of RM and PM for next six months as per ROFO provided by Business.

Commercial will then procure RM and PM from approved source

● Development of Packing Material:

Business department is responsible for the development of new PM. After collecting
design, sample, dimension, Artwork or specification from business, commercial asks for
quotation from enlisted vendor. Business will raise CEP (Capital Expenditure Proposal) for
MD's approval to purchase cylinder. Commercial will prepare a comparative statement
with the quotations collected. Commercial will also prepare a cost sheet for Carton, leaflet

Page no. 30
 and outer to compare with price bid.After rate approval from business in CS and delivery
confirmation in due date, Business will handover approved
design/sample/dimension/Artwork/specification to approved vendor. Vendor will submit
his produced sample to QA for approval.

● Strategies for regulatory compliance

The implementation of such a SC risk management culture entail increased dialogs with
consumers, employee empowerment and to raise the level of communications among parties
regarding the corporate social responsibilities such as environment, health of employee and work
safety issues assist in engendering a greater level of compliance control throughout the entire
organisation and among interactive parties. It also assists total quality management through the
empowerment of employees and an emphasis on the smooth flow of activity41.

● complement theses actions manufactures can also undertake to acquire ISO

4001accreditation which recognises that the organization has met the International
StandardsOrganisation for monitoring, environmental or employment practices.

Page no. 31
.

UNIT - 4 CONCLUSION

● Conclusions:A company's supply chain stretches from the factory where its products are
made to the point the products are in customer hands. A typical supply chain has five
different steps. Products start out as raw materials. In the second step, the manufacturer
takes raw materials and turns them into products. The third step occurs when the finished
products get shipped to the distribution facility. In step four, the distribution facility uses
the products to stock a retail store. In the final step, the products get delivered to the
hands of the consumer. The
supply chain of ACI has been described in this paper with the light of this concept

● Increasingly, supply chain management is being recognized as the management of key

business

processes that comprise the supply chain. Optimized supply chain management can decrease

total system cost, inventory and cycle times while significantly increasing stock availability and

inventory turns. If these results can be achieved, it can provide companies with greater profits,

improved customer service and competitive advantage. It has been continuously benefitted by its

outstanding supply chain management Department. It offers invincible professionalism and

expertise in the entire commercial activities of ACI as well as gaining comparative advantage
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over it competition and gaining more customer trust and share.

UNIT - 5 Recommendations/Potential Opportunities

● Recommendations:

1. Reduction raw material price compared to competitors in the national andinternational

market.

2. Automation of material requirement planning and production requirement.

3. Comprehensive database of all suppliers so that the buyer can easily get the information

about the supplier.

4. Online billing and access to real time update automation.

5. Ensure all documents and accuracy as per LC terms and conditions.

6. Online duty payment based on bill of entry have to be arranged by the organization

7. Implementation of customer feedback form half yearly.

8. Settlement of product HS code according to the national board of revenue.

9. Maintaining port rent and demurrage charge at minimum percent for cost saving.

10. Training on supply chain management, IT, communication and leadership.

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 11. Training on customs acts, import policy and VAT should be increased

● The conclusively that adoption of information technology and implementation

of a risk management culture are universal solutions to the problems outlined. This is not

to

discount the value added from other solutions but serves as to which solutions most

criticallyrequire implementation in contemporary supply chain management.Before

accepting such solutions an astute SC manager should heed the social ramifications which

each solution presents.

● The matter of bargaining power wielded by large suppliers over smallerparticipants can

breed conflicts of interest within the SC and disengage entities from workingtowards a

unified goal. Moreover the conflict between the human relation schools andmanagement

accounting regarding whether control mechanisms play a productive role within

theorganisations still remains unresolved. In addition, global outsourcing solutions breed

processinefficiency through extended lead-times.

● Ultimately, as entities within an integrated SC areunique and different no one solution will
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 provide a panacea to the problems in SC management.The SC manager must therefore use

sound judgement in deciding which solution will best suiteboth the organisation and the

SC itself.

UNIT - 6 Limitations of Study

● Despite categorizations that make your supply chain seem like independently run

departments, the entire chain is still interconnected, and each division is dependent on

all others for overall success. Disruptive events in one area of a supply chain can have

damaging effects on other areas if the event is not controlled properly. Even worse,

events in your supply chain can disrupt departments outside of your supply chain, like

Sales and Marketing.

The probability of extensive damage is significantly increased when these disruptive events

occur unexpectedly. While these events can’t always be predicted, advanced planning,

forecasting of risk events and adopting a more holistic representation of your business can

prepare planners to react quickly and intelligently to mitigate damages.

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For these reasons, supply chain network design tools are simply not enough when it comes to

risk management. Unfortunately, many such solutions only provide limited insight rather

● than a holistic view of risk drivers and effective risk management.

The creation of divisions and departments within a business can be viewed as an act in

specialization. These divisions allow for the focus and development of specific platforms

and standards that best serve each department's stated goals while minimizing any risk

associated with the pursuance of those goals. There is nothing inherently flawed with

this approach, but problems may arise when these departments fail to recognize and

understand the interconnectivity they share with other departments within the

business.

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● Bibliography

1. CSCMP glossary

http://cscmp.org/sites/default/files/user_uploads/resources/downloads/glossary-

2013.pdf

2. Baert, P. (2004). Pragmatism as a philosophy of the social sciences. European Journal

of

Social Theory, 7(3), 355–369

3. Hines, T. 2004. Supply chain strategies: Customer driven and customer focused.

Oxford:

Elsevier.

4. Handfield, R. B., Nichols E. L. (1999): Introduction to Supply Chain Management,

Prentice Hall, New Jersey.

5. Kidd, A. (2013). The Definitions of ‘Procurement’ and ‘Supply Chain Management’-.

CIPS Australasia .

● References
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• Betts, B. (2001) “Dirty Data”, Computerworld, Vol 35, Issue 51

• C. F. Ho, Y. P. Chi, and Y. M. Tai (2005), A Structural Approach to Measuring Uncertainty

in Supply chains, International Journal of Electronic Commerce / Spring 2005, Vol. 9, No. 3,pp.

• Companies Report Widespread, costly asset tracking problems Frontline solutions; Oct 2001

.2,11, ABI/INFORM Global Pg.10 Source: Australian, The, OCT 04, 2005

● • Dalziel A. (2005), Gartner Advice on Global SC Management, Intentia Headlines, No 2.

6. Lambert, Douglas M., Martha C.Cooper and Janus D. Pagh, “Supply Chain Management:

Implementation Issues and Research Opportunities,” The International Journal of Logistics

Management, Vol. 9, No. 2 (1998), p. 1.

7. Mentzer, J.T. et al. (2001). "Defining Supply Chain Management". Journal of Business

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