CHAPTER- 1

INTRODUCTION

1.1 INTRODUCTION ABOUT THE REPORT

Logistics & supply chain industry;

Logistics typically refers to activities that occur within the boundaries of a single

organization and Supply Chain refers to networks of companies that work together and

coordinate their actions to deliver a product to market. Also, traditional logistics focuses its

attention on activities such as procurement, distribution, maintenance, and inventory

management. Supply Chain Management (SCM) acknowledges all of traditional logistics and

also includes activities such as marketing, new product development, finance, and customer

service" - from Essential of Supply Chain Management by Michael Hugo’s

Logistics is about getting the right product, to the right customer, in the right quantity, in

the right condition, at the right place, at the right time, and at the right cost (the seven Rs of

Logistics)" - from Supply Chain Management: A Logistics Perspective by John J. Coyle et al

In the past, various logistics tasks were under different departments, but now they are under

"logistics department" and report to the same logistics head as below, We would like to point

out that the word "logistics" ends with the "s". Without the "s" (logistic), it means a kind of

mathematical function showing exponential growth.

"Logistics Management deals with the efficient and effective management of day-to-day

activity in producing the company's finished goods and services" - from Integral Logistics

Management by Paul Schön Leben.

company. In contrast, Outbound Logistics refers to movement of finished goods from your

company to customers"

To illustrate this term, we make a small graphic as below:

As you can see, purchasing and warehouse function communicates with suppliers and

sometimes called "supplier facing function". Production planning and inventory control

function is the centre point of this chart. Customer service and transport function communicates

with customers and sometimes called "customer facing functions.

Transport and Logistics refers to 2 types of activities, namely, transportation (traditional

services such as air/sea/land transportation, warehousing, customs clearance) and logistics

(value-added services which including information technology and consulting)"

International logistics, global logistics and global supply chain are one of the most ambiguous

group of terms out there. They are used interchangeably and often referred to international

production and transportation activities. However, most concise definition of international

logistics or global logistics is as below,

"International Logistics (also known as Global Logistics) focuses on how to manage

and control overseas activities effectively as a single business unit. Therefore, companies

should try to harness the value of overseas product, services, marketing, R&D and turn them

into competitive advantage"

3PL or Third-Party Logistics refers to the outsourcing of logistics activities, ranging from a

specific task, such as trucking or marine cargo transport to broader activities serving the whole

supply chain such as inventory management, order processing and consulting."

Fourth Party Logistics or 4PL is the concept proposed by Accenture Ltd in 1996 and it

was defined as below,

negotiations and management of performance of 3PL providers, including the design of the

whole supply chain network and control of day-to-day operations” You may wonder if a 4PL

provider is really needed. According to the research by Nizar Al-Morgen from the University

of Wisconsin-Stout, top 3 reasons why customers would like to use 4PL providers are as below,

- Lack of technology to integrate supply chain processes

- The increase in operating complexities the sharp increase in global business operations

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 in the hands of the ultimate consumer" - from Logistics and Supply

Chain Management by Martin Christopher

Supply Chain Management (SCM) refers to the coordination of production, inventory,

location, and transportation among the participants in a supply chain to achieve the best mix of

responsiveness and efficiency for the market being served" - from Essential of Supply Chain

Management by Michael Hugo’s.

To dig deeper, supply chain management has 6 important components as below,

- It is a Network: Many companies have the department that controls various activities within

the supply chain. So, the people are led to believe that SCM is a "function" which it's not.

Supply Chain is a "network" consists of many players as below,

A generic supply chain structure is as simple as Supplier, Manufacturer, Wholesaler and

Retailer (it's more complex in the real world but a simple illustration serves the purpose).

The word "management" can be explained briefly as "planning, implementing,

controlling". Supply Chain Management is then the planning, implementing, and controlling
Information Musts Flow: Another important attribute of supply chain management is the flow

of material, information, and finance (money). Even though there are 3 types of flow, the most

important one is information flow aka information sharing. Let us see the example of this

through the simplified version of bullwhip effect as below,

When demand data is not shared, each player in the same supply chain must make some

sort of speculation. According to the above graphic, the retailer has a demand of 100 units, but

each player tends to keep stock more and more at every step of the way. This results in higher

costs for everyone in the same supply chain.

- Coordination is Essential: Information sharing requires a certain degree of

"coordination" (it's also referred to as collaboration or integration in scholarly articles). Do you

wonder when people started working together as a supply chain network? In 1984, companies

in the apparel business worked together to reduce overall lead-time. In 1995, companies in

automotive industry used Electronic Data Interchange to share information.

- Avoid Conflicting Objectives: Working as a supply chain network requires the same

objective, but this is often not the case (even with someone in the same company). "Conflicting

Objectives" is the term used to describe the situation when each function wants something that

won't go well together. For example, purchasing people always place the orders to the cheapest

vendors (with a very long lead-time) but production people need material more quickly.

To avoid conflicting objectives, you need to decide if you want to adopt time-based strategy,

low-cost strategy, or differentiation strategy. A clear direction is needed so people can make .

- Balance Cost/Service: The concept of Cost/Service Trade-off appeared as early as in 1985

but it seems that people really do not get it.

When you want to improve service, cost goes up. When you want to cut cost, service

suffers. It's like a "seesaw", the best way you can do is to try to balance both sides.
 Real world example is that a "new boss" asks you to cut costs by 10%, improve service

level by 15%, double inventory turns and so on. If you really understand cost/service trade-off

concept, you will agree that you cannot win them all. The most appropriate way to handle your

KPIs.

- Foster Long-term Relationship: To work as the same "supply chain team", long-

term relationship is a key. Otherwise, you are just a separate company with a different strategy

/ agenda. So, academia keeps preaching about the importance of relationship building, but is

not for everyone. Since there are too many suppliers to deal with, portfolio matrix is often used

to prioritize the relationship building. Focus your time and energy to create long-term

relationship with suppliers of key products and items with limited sources of supply because

these are people who can make or break your supply chain.

1.2 PURPOSE OF THE STUDY:

The purpose of study is to identify how the functions and procedures are carried out

in Robert Bosch ganp plant being a part of automobile sensor parts manufacture, with

special reference to various components like warehouse management, inventory control,

transportation, SQCD monitoring. To observe and learn the various workings undergone

as part of changes in daily monitoring in warehouse process.

1.3 OBJECTIVES OF THE STUDY:

The objectives of the study are too I have applied my knowledge in warehouse

implement of changes in the organization. The following are the objectives:

1. to have a clear practical as well as theory knowledge on the organization.

2. to understand how warehouse monitoring has undergone its process.

3. What major various documents have been passed out through this process and

its legal procedures.

There is a sequential process of steps of daily monitoring SQCD:

SQDC board is a daily process management tool used to provide insights swiftly and

visually on how the process is operating based on the 4 vital criteria: Safety, Quality, Delivery

and Cost

1. : S-Safety: by implementing effective safety measures, companies can protect

their employees and reduce the risk of accidents and injuries in the warehouse.

This can help improve productivity, efficiency, and compliance, benefiting

the company's bottom line.

2. Q-Quality: Quality is the ability of a product or service to meet and exceed

customer expectations. It is the result of the efficiency of the entire production

process formed of men, material, and machinery. Customer requirements

determine the quality scope.

3. C-Cost: The biggest costs in most businesses are the four basic types

of manufacturing costs:

1. Raw materials

2. Direct labour

3. Variable overhead – production costs that increase or decrease depending on

the quantity produced. For example, electricity is a variable overhead. If a

company increases production, it will also increase the usage of equipment,

which will result in a higher electricity bill.

4. Fixed overhead

4. D-Delivery; Logistics are an essential part in providing good customer service

on time. Logistics customer service can be separated into three elements:

2 Transaction elements (during delivery)

3 Post-transaction elements (after delivery)

STOCK ACCURACY & LOCATION ACCURACY MONITORING:

❖ STOCK ACCURACY MONITORING

Inventory accuracy is a metric that measures the difference between your records of

warehouse stock and your real-life inventory. Inventory accuracy is critical for preventing

stockouts, shortages, shrinkage, controlling inventory quality, and maintaining a positive

customer experience

Daily stock accuracy checking in SAP and physical

❖ LOCATION ACCURACY MONITORING

A system for managing the physical location of inventory within a warehouse or stock

compound. Stock items are segregated by issue frequency, size, issue quantity, attractiveness

or type and placed in dedicated locations within a warehouse or compound.

Daily location accuracy checking in SAP and physical

1.4 SCOPE OF THE STUDY:

The scope of the study is to know the various operational activities that take place

inside the warehouse also the other aspects that are related to SQCD monitoring and

warehouse management. The center wouldreceive shipments from places like Singapore,

south Korea, Japan, Germany, Russia, etc., The shipments are tracked and mapped to

know the location and to trace the vehicle. The logistics of physicalitems usually involves

the integration of flow of material handling. A warehouse is a commercial building for

storage of goods.
1.5 CHAPTER SCHEME:

I. Introduction

II. Industry Profile

III. Company Profile

IV. Broad Area of the Study

V. Tools and Techniques Used for the Study

VI. Learning and Work done

VII. Conclusion