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ON
BY
BALAKUMAR. V
DEPARTMENT OF MANAGEMENT STUDIES
SRI RAMANUJAR ENGINEERING COLLEGE
The efficiency of any business can be visible through the actions that are undertaken to
make the products to reach the customers at a given time. Effective outbound logistics
system is used to deliver the products to the customers at a right time.
I have tried to put my best effort to complete this task on the basis of skills that I have
achieved during the last one year study in the institute.
I have tried to put my maximum effort to get the accurate statistical data. However I
would appreciate if any mistakes are bought to my notice by the reader.
DECLARATION
I, BALAKUMAR.V hereby declare that this piece of project report entitled “A Study on
Outbound Logistics of Seyang Automotives India (P) Ltd” for the partial fulfillment
of the requirement for the award of the mark, is a original work done by me under the
supervision and guidance of Prof. Mr. Ramamurthy, Sri Ramanujar Engineering College.
This project work is my own and has neither been submitted nor published elsewhere.
PLACE: CHENNAI
This is to certify that the summer project work of Mr. BALAKUMAR.V titled A
STUDY ON OUTBOUND LOGISTICS is an original work and this has not been
submitted elsewhere in any form. The indebtness to other work/publications has been
dully acknowledged at the relevant places. The project work was carried out during
25.06.2010 to 26.07.2010 in Seyang Automotives India (P) Ltd.
The major objective of the study is to properly understand the out bound logistics of
Seyang Automotive India (P) Ltd (SAIPL) & to suggest measures to overcome the
shortfalls if any.
Transporting of inventories from factory to other firms for further production is known as
logistics management. “Logistics is the process of planning, implementing, and
controlling the efficient, effective flow and storage of goods, services, and related
information from point of origin to point of consumption for the purpose of conforming
to customer requirements.". It involves the relationship between raw material and
finished products.
The goal of out bound logistics is to ensure that the firm is able to continue its operation
and that it has sufficient facilities to satisfy the customer wants without interruption and
also to aid production by receiving and forwarding purchase orders (P.O) from
customers.
Outbound Logistics also aids the finance departments in collecting the debts from
customers with in the specified time
INTRODUCTION
LOGISTICS:
Logistics is that part of supply chain process that plans, implements and controls
the efficient, effective flow of and storage of goods, services and related information
from the point of the point of consumption in order to meet the customers’ requirement
DIVISIONS OF LOGISTICS:
INTERNAL LOGISTICS:
Receiving, storing, and disseminating incoming goods or material for use is called
Inbound logistics.
OUTBOUND LOGISTICS:
Movement of material associated with storing, transporting, and distribution a
firm's goods to its customers is called outbound logistics. The main functions of
outbound logistics are Transportation and warehousing.
Time utility is created by storing the products until they are needed.
Transportation is also a factor in time utility; it determines how fast and how consistently
a product moves from one point to another. This is known as time in transit and
consistency of service respectively.
.
NEED FOR THE STUDY
To observe the overall outbound logistics of ‘Seyang Automotives India pvt Ltd’
(SAIPL) with its customers and to analyze the critical problem in it.
As Tier II suppliers must posses timely delivery of goods to its customers, this
study also analyses the cycle time of loading and unloading of goods at the supplier as
well as customer end.
OBJECTIVE OF THE STUDY
This study analyses the outbound logistics of ‘Seyang Automotives India Pvt Ltd’
(SAIPL).
This study covers only the shipments to major customers of Seyang and not for
the outsourcing goods.
This study is all about the outbound logistics and omits the Inbound logistics and
work-in-progress supply chain.
Logistics have been around for a long time, in fact since the creation of man there have
been logistics issues to be solved. As a discipline, it started in the military where it was
involved with the movement of troops and resources to areas needed (Lumnus et al
2001).
As a business discipline it has been defined as, the organisational functions that include
the planning, implementation and control of the flow of goods, services and related
information (The Council of Logistics Management, 2001).
There is a lot of overlap with the concept of Supply Chain Management (SCM)
and in some literature it is used interchangeably. Some attempts have been made to
distinguish between the two (see Lumnus et al 2001) who after reviewing literature and
researching with industry professionals, aver that the difference is that SCM goes beyond
logistics to included the suppliers’ suppliers and the customers’ customers. For most parts
however the functions and areas covered would be roughly the same which is the position
taken in this paper.
Logistics was not among the early adopters of Information Technology (IT) but it
is now ubiquitous hence most operations in logistics have some IT application. The
advent of the internet and electronic commerce, have emphasized the role of logistics in
organisations. In fact Bretzke (2000) for instance argues that the failure of so many
companies in e-commerce can be in part accounted for by the neglect of logistics as a key
factor of success, implying a prominent role for companies specializing in the logistics
segment.
LOGISTICIAN’S FUNCTION:
• Inventory Management,
• Purchasing,
• Transportation,
• Warehousing,
• Consultation and
1) Inventory Maintenance:
2) Order Processing:
3) Transportation:
For most firms, transportation is the most important logistics activity, simply because it
absorbs, on the average, approximately two thirds of logistic costs. “Transportation”
refers to the various methods for moving a product. Road, rail, water and air are just a
few of the popular choices. Management of the transportation activity usually involves in
making choices regarding the method of shipment, the routings, and the utilization of
vehicle capacity.
OVERALL LOGISTICS PROCESS:
OUTBOUND LOGISTICS:
Movement of material associated with storing, transporting, and distribution a
firm's goods to its customers is called outbound logistics. The main functions of
outbound logistics are Transportation and warehousing.
Time utility is created by storing the products until they are needed.
Transportation is also a factor in time utility; it determines how fast and how consistently
a product moves from one point to another. This is known as time in transit and
consistency of service respectively.
Discussion with the customer end executives, managers, quality personnel and
employees.
Primary Data:
The data collected for the first time through observation and
interview method. The data is also collected by observing the working of
logistic department of Seyang automotives.
Secondary Data:
TRANSPORTS OF SEYANG:
• The transport i.e vehicles used for shipments are obtained for monthly
rentals.
• The process of maintaining the vehicles also outsourced to the vehicles
owners itself.
TRANSPORT AGENCIES:
VMS Transport:
VMS transport takes the major part of transport providing process. Out of seven
trucks used for seyang’s despatch, six were owned by VMS transport.
Abi transport:
TABLE NO 1
Jin-tech 32 6.1 %
others 56 10.7%
INTERPRETATION:
CHART NO 1:
SHIPMENTS IN DIFFERENT SHIFTS PER DAY AS PER
TRANSPORTATION:
TABLE NO 2
TOTAL 36 100%
interpretation:
Among the three shifts, 45% of shipments are made in Shift I followed by Shift II
33% and Shift III 22%
TABLE NO 3
SHIFTS TIMING TOTAL DESPATCH PERCENTAGE
TOTAL 21 100%
interpretation:
While analysing the shipments of ‘Hanil Automotives Plant II’ seperately for the
three shifts, we can see that 43% of shipments made in shift I, 33% of shipments made in
shift II and 24% of shipments made in shift III.
TOTAL 5 100%
interpretation:
While analysing the shipments of ‘Hanil Automotives Plant I’ seperately for the
three shifts, we can see that 40% of shipments made in shift I, 40% of shipments made in
shift II and 20% of shipments made in shift III.
CHART NO 4:
SHIPMENTS TO DYMOS AUTOMOTIVES PER DAY:
TABLE NO 5:
SHIFTS TIMING TOTAL DESPATCH PERCENTAGE
III 12.30 am to 8 am 0 0%
TOTAL 2 100%
interpretation:
CHART NO 5:
TOTAL REJECTIONS FROM CUSTOMERS (FOR 2 WEEKS):
TABLE NO 6
Customers Number of rejections Percentage
( in 2 weeks)
Dymos Lear 2 20 %
Total 10 100
INTERPRETATION:
As ‘Hanil Automotives plant II’ is the major customer, 50% of the rejections are
from it. 30% of rejections are from ‘Hanil Automotives plant I’ and 20% of rejections are
from ‘Dymos Automotives’.
Bin problems 3 30 %
Other Mistakes 3 30 %
(wrong specification and
quantity, wrong invoice etc)
Total 10 100
INTERPRETATION:
Quality is the major reason for rejection standing 40% among the rejections. 30%
of rejections are due to Bin problems and 30% are due to other reasons like wrong
specification, wrong quantity, wrong invoice etc.
CHART NO 7:
SUMMARY OF FINDINGS:
1. I observed the Logistics department of Seyang Automotives India Pvt ltd (SAIPL)
for one month
2. There are three major customers for Seyang. They are :-
Dymos Automotives.
8. Most of the rejections are from Hanil Automotives Plant II as it receives more
goods.
9. As quality is the major reason for rejections, there are other reasons that are
directly related to logistics department such as using of non-standard and
uncleaned Bins, Wrong specification, wrong quantity, Wrong invoice, etc.
10. Problems that are found by interviewing the customer side are as follows:
4. Wrong quantity.
6. Mistakes in Invoice.
7. Quality issues.
1. New standard bins have to be purchased based on the products shape and weight.
4. The supervisors has to check the shipments twice before making invoice so that
Mis-specification of goods, wrong quantity in dispatch and ,mistakes in invoice
can be avoided
5. Proper ERP system has to be implemented to make the work simplier and to share
the inter and intra departmental information at the right time.
CONCLUSION:
Seyang Automotive India Pvt Ltd (SAIPL) with its emergence tracing back to
2007 has been proved to be one of the prominent Tier-II suppliers of Hyundai Motors
India Pvt Ltd who is the Original Manafacturers of the Equipments, i.e cars.
SAIPL is not directly supplies goods to Hyundai rather it supplies to the Tier I
suppliers namely Hanil Automotives plant II, Hanil Automotives Plant I and Dymos
Automotives who are the key customers of SAIPL.
A work is never a work of an individual. I owe a sense of gratitude to the intelligence and
cooperation of those people who had been so easy to let me understand what I needed
from time to time for completion of this exclusive project.
I am greatly indebted to my guide Prof. V.Rajesh, faculty guide for Finance (summer
internship), Sri Ramunjar Engineering College and Mr. G.Sekar M.D. of Gopal Metal
Containers (P) Ltd and Mr. Thanigaivel, Auditor for their constant guidance, advice and
help which enabled me to finish this project report promptly in time.
Last but not least, I would like to forward my gratitude to my friends and other faculty
members who always endured me and stood with me and without whom I could not have
completed the project.
B.GOPINATH
NEED FOR STUDY
Estimation of working capital is much more important than estimation of long term
capital. I have chosen this topic to understand the depth and role of working capital in
GMC (P) LTD.
SCOPE OF THE STUDY
Time period is very short and it’s not possible to observe every aspect of working
capital management practices.
The project is mainly based on information gathered from secondary data, mainly
the printed balance sheet and profit and loss account
It is applicable only to the GMC (P) Ltd between ’08 and ‘09