“Logistic Management at Godrej & Boyce Mfg. Ltd.”

With Reference to Godrej & Boyce Mfg. Ltd., Ahmadabad

A Summer Project Report Submitted in Partial Fulfillment of award of MBA Degree

Project Guide:

Prof. Samveg Patel

Submitted by:

Shukla Jinesh

Roll No: 105

Submitted to:

S. K. PATEL INSTITUTE OF MANAGEMENT & COMPUTER STUDIES

Gandhinagar, India

July , 2012

S.K.P.I.M.C.S 2011-‘13 Page 1

CERTIFICATE

This is to certify that Mr. / Ms. Shukla Jinesh , student(s) of MBA 1st year of S.

K. Patel Institute of Management and Computer Studies, has/have completed

their/his/her Summer Project titled “Logistic Management at Godrej & Boyce

Mfg. Ltd.” in the year 2012, in partial fulfillment of curriculum requirements for

the award of MBA degree under KadiSarvaVishwaVidhyalaya University.

Dr. N NJani Prof. RanjaniSrinivasan

Director Coordinator

S.K.P.I.M.C.S 2011-‘13 Page 2

DECLARATION

I, hereby, declare that the Summer Internship Project titled, “Logisitc

Management at Godrej & Boyce Mfg. Ltd.”is original to the best of my

knowledge and has not been published elsewhere. This is for the purpose of

partial fulfillment of KadiSarvaVishwaVidhyalayaUniversity requirements for the

award of the title of Master of Business Administration, only.

Jinesh Shukla Signature

S.K.P.I.M.C.S 2011-‘13 Page 3

ACKNOWLEDGEMENTS

There were many, within Godrej and outside who assisted us to make this project possible. My heartfelt thanks to each one of them for their whole hearted co-operation in making this project possible.

Mr Tushar Desai, Manager, Godrej & Boyce (Logistic) for his tremendous enthusiasm and lively interest in this project and the dedicated work he put in over a two month period.

I also like to give my thanks to Mr. Arab Hassan & Mr. N.K.Dixit Asst. Manager - Godrej & Boyce (Logistic) for their guidance for my project.

My deepest gratitude to all the respondents who have been sincere to express their views without whom the validation of this research would have remained just an idea.

I take this opportunity to express my heartfelt gratitude to my faculty guide Prof. Samveg Patel (S.K.P.I.M.C.S.) I am thankful to sir for his valuable support and guidance throughout the project.

THANKS

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Preface

The summer training is an on the job training which enhances the knowledge and skills of the trainee and generate scope for the implementation of his/her acquired skills and knowledge during his/her MBA program. It helps an individual to gain first hand experiences in the corporate world.

Godrej group of industries is catering the needs of customers since 1897 by providing various quality products. The company is one of the largest privately held diversified corporate in India. The Godrej name has been built on a spirit of innovation that has made it one of the country’s most remarkable industrial corporate.

Founded over 117 years ago, Godrej is a highly reputed Household and Industrial Brand in India. Admired for its sprit of Innovation and Self Reliance, Godrej and Boyce Mfg. Co. Ltd. is today a highly diversified marketing and manufacturing organization.

Godrej & Boyce Logistic is a place where a stress and tension of work should divided with fun and peace. The main objective of know the supply chain management & logistic activity.

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EXECUTIVE SUMMARY

During the training period at Godrej & Boyce MFG. Co. Ltd.we learned about: Corporate culture, Organizational behavior, Team work & Coordination.

In these two months I work as trainee. My suggestions will certainly help the organization in future. From this training time I came to know about the logistic management and how to lead worker? And also know the MIS system BaaN , and also work on it.

Also I have a chance to work in live project at TCS Garima Park . At that time understand the manpower management and handling , also time management.

During the training I found two main issues:

Space Problem Manpower Problem

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Chapter 1

Introduction:

1.1 What is Logistics management?

Logistics is that part of the supply chain which plans, implements and controls the efficient,

effective forward and reverse flow and storage of goods, services and related information

between the point of origin and the point of consumption in order to meet customer and

legal requirements. A professional working in the field of logistics management is called

logistician.

Logistics management is known by many names, the most common are as follows:

Materials Management

Channel Management

Distribution (or Physical Distribution)

Supply Chain Management

Warehouse management systems and warehouse control systems:

Although there is some functionality overlap, the differences between warehouse

management systems (WMS) and warehouse control systems (WCS) can be significant.

Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and

trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done

by the most effective means. For instance, a WMS can tell the system it is going to need

five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it

acts, other considerations may have come into play or there could be a logjam on a

conveyor. A WCS can prevent that problem by working in real time and adapting to the

situation by making a last-minute decision based on current activity and operational status.

Working synergistically, WMS and WCS can resolve these issues and maximize

efficiency for companies that rely on the effective operation of their warehouse or

distribution center.

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1.2 Company Introduction:

Established in 1897, the Godrej group has grown in India from the days of the charkha to nights at the call centers. Our founder, Ardeshir Godrej, lawyer-turned-locksmith, was a persistent inventor and a strong visionary who could see the spark in the future. His inventions, manufactured by his brother Pirojsha Godrej, were the foundation of today’s Godrej empire. One of India’s most trusted brand, Godrej enjoys the patronage and trust of around 500 million Indians every single day. Our customers mean the world to us.

With 7 major companies with interests in real estate, FMCG, industrial engineering, appliances, furniture, security and agri care – to name a few – our turnover crosses 3.3 billion dollars. You think of Godrej as such an integral part of India – like the bhangara or the kurta – that you may be surprised to know that 25% of our business is done overseas. Our presence in more than 60 countries ensures that our customers are at home with Godrej no matter where they go. With brands you can believe in, service excellence you can count on and the promise of brighter living for every customer, Godrej knows what makes India tick today.

Today, we are at a point in Godrej’s history when our amazing past is meeting up with its spectacular future head on. Godrej is learning and relishing being young again.

In 1897 a young man named Ardeshir Godrej gave up law and turned to lock-making. Ardeshir went on to make safes and security equipment of the highest order, and then stunned the world by creating toilet soap from vegetable oil. His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej towards becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling industrial garden township now called Pirojshanagar in the suburbs of Mumbai, where the Godrej Group has its headquarters.

Godrej & Boyce Mfg. Co. Ltd., the holding company of the Godrej Group, started its journey with the manufacture of high quality locks in 1897. Today, we have 15 diverse business divisions offering consumer, office, and industrial products and services of the highest quality to every corner of India and across the globe.

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Our Businesses:

Appliances

Offerings in the refrigerator, washing

machine, air conditioner and microwave oven

ranges.

AV Solutions

Display solutions, audio video conferencing

solutions, electronic copy boards.

Batteries

Godrej and GP Batteries offer a range of zinc chloride, alkaline & rechargeable batteries and a range of chargers.

Furniture

Furniture for home, office, hospitals, establishments, labs, educational institutions, shipyards and defense .

Material HandlingCounter balance trucks, forklift trucks, tyre handlers, all terrain trucks, attachments and accessories.

LocksLocking solutions for different security needs to ensure optimum safety

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Appliances AV Solutions (Prima)

Furniture (Interio) Locks

Material Handling Security Solutions

Storage Solutions Vending (Prima)

Security SolutionsSafes, lockers, banking automation products, electronic security systems, premises security .

VendingHigh quality table top beverage vending machines, services and beverages.

Storage SolutionsWarehousing solutions, automation and consulting.

We value integrity, trust, service and respect for individuals and for the environment. We pride ourselves for being one of India’s most respected corporate houses known for our philanthropy and initiation of labour reforms besides being recognized for our fair, transparent and ethical dealings. Our people are our assets who are groomed to deliver their best. What makes us special? At Godrej, it’s more than a career. It’s an opportunity to live your dreams and be part of a culture that nurtures ambition, challenges and provides freedom to operate and express your ideas.

The Godrej Group touches the lives of 400 million Indians who use at least one of our

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products every single day. Our commitment to quality, attention to detail and customer centricity has helped us earn the trust of generations of Indians.

1.3 Basic Activities

Perpetual Inventory taken daily at the morning

Local delivery materials ready to dispatch at 11.00 am and sending through special assign tempo.

If required urgent delivery for any div arrange for that.

No challans pending at the end of the day

Materials recd from ho after checking taken into Baan. If discrepancy found informed to concern.

Materials recd from upcountry through transport are collected on same day, necessary documents are prepared daily & sent to order booking cell.

Scrap disposal regularly.

Non moving item list sending regularly to concer

As in the training period I got to know the some process which is a part of the study but not theoretical aspects but as practical like work in BaaN (ERP) system, and also GODREJ & BOYCE smart net. With the help of it I work globe,

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Live Project At TCS(Garima Park)

I have unloaded 6.5 containers within 10 days.

Worked with 50 workers everyday.

I obeyed L&T safety norm and conditions.

Come to know about difficulty in worker management, space problem.

I worked in challenging circumstances as my work was continuous.

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Chapter 2

LEARNING OBJECTIVES

To get insight into the logistic process

To get product knowledge

To learn Baan system

To learn loading & unloading process

To study reasons for late deliveries & return deliveries

To study space norms and storage system

To study order processing time

To Study uses of modern technology for effective logistic management

Realized situation of bottom level employees

Realized the importance of time management

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Chapter 3 Industry Profile

Consumer Durables Market -- An OverviewNovember 23, 2011

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. The market share of MNCs in consumer durables sector is 65 per cent. MNC's major target is the growing middle class of India. MNCs offer superior technology to the consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well acknowledged brands, and hold over wide distribution network.  Key Industry Dynamics 

Industry Size: Rs. 350bn

Key Categories: White Goods, Brown goods and Consumer electronics.

Competitive landscape: Dominated by Korean majors like LG and Samsung in most of the segments

Margin Profile: Low margin, dependant on volumes

Growth opportunities: Lower penetration coupled with increasing disposable income

The Indian Consumer Durables segment can be segmented into three groups:

 

White goods Brown goods Consumer electronics·        Air conditioners·        Refrigerators·        Washing Machines·        Sewing Machines·        Watches and clocks·        Cleaning equipment·        Other domestic appliances

·        Microwave Ovens·        Cooking Range·        Chimneys·        Mixers·        Grinders·        Electronic fans·        Irons

·        TVs·        Audio and video systems·        Electronic accessories·        PCs·        Mobile phones·        Digital cameras·        DVDs·        Camcoders

   

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2. Market Size 

Consumer Durables

Market Size (2010)  Mn units (2011E) Growth (%)

Flat Panel TV 2.8 4.5 61Refrigerator 9.0 12.0 33Washing Machines 5.0 6.0 20Air Conditioners 3.4 4.4 29Microwave 1.0 1.5 44

Source: CEAMA, MOSPI, GEPL Capital Research

 

 

India’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products in 2009–10 is estimated to be US$ 6.28 billion, indicating a growth of 18 per cent over the previous year. It is projected at about US$29.4bn in 2011. This is expected to increase to US$52.6bn by 2015, driven by rising incomes and growing affordability.

 

Spending on consumer electronics devices is projected to grow at an overall CAGR of 12 per cent through 2015, with the key segments including low-cost mobile handsets, colour TVs, set-top boxes and notebook computers. Only nine out of 1,000 people in India own a computer, one-fifth of the level in China, while Indian handset population penetration is about 57 per cent.

 

Among consumer electronics, 21-inch colour TV continues to dominate the market with a 65 per cent share. Computers accounted for about 32 per cent of Indian

S.K.P.I.M.C.S 2011-‘13 Page 19

consumer electronics spending in 2010. BMI forecasts Indian domestic market computer hardware sales (including notebooks and accessories) of US$9.5bn in 2011, up from US$8.4bn in 2010. Sales were up by as much as one-third in 2010 compared with the previous year. With PC penetration of around 2 per cent, the computer hardware compound annual growth rate (CAGR) for the 2011-2015 will be about 15 per cent.

 India’s domestic video, audio and gaming device market is expected to grow to a value of US$21.7bn in 2015. TV will remain the core product in this category, with sports events such as the 2011 ICC Cricket World Cup driving demand for TV set upgrades. LCD TV set sales are projected to pass 3.7mn in 2011, while vendors also report strong growth in the LED TV set segment.

Market Share by Segments 

 

 

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3. Market Analysis

 

The market for consumer durables has expanded over the years. The household

income of Indian houses has experienced significant improvement in the past

decades and as a result the demand for durables has also risen. The current

projection shows that household income of the population in top 20 cities of India is

expected to grow by 10 per cent in the coming years. This is likely to increase the

demand for consumer products as well.

The middle income group section (household with disposable income between 200,

000 to 1, 000,000) which currently constitutes 5 per cent of the population is

S.K.P.I.M.C.S 2011-‘13 Page 21

expected to become 41 per cent by 2025. Rural poverty is expected to decline to 26

per cent by 2025. All these factors are expected to contribute towards improving the

market scenario for consumer durables.

The market has recently experienced around 30 per cent growth rate in demand for

electronics and home appliances. Categories like Flat panel TVs, Microwave ovens,

Air Conditioners and Refrigerators are likely to post strong growth. Urban growth is

likely to be driven by new technology/innovative products, lifestyle products and

replacement demand such as LED TVs, Laptops, Split ACs, etc. Rural markets are

likely to outpace growth in the urban markets led by increasing penetration across

categories such as Refrigerators and Washing machines.

 

 

Some of the factors that are said to have promoted the growth of the industry are: 

Changed lifestyle

Higher disposable income

Changed taste

Affordable prices

Boom in housing and real estate industry

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Widened market- expansion of rural market

Increased scope for advertising

Easy financing- zero interest EMI

Easy loans and credit card purchases

Festival deals and discounts

 

Market Trends: New technology and lifestyle trends creating replacement

demand

Now ThenFlat Panel (LCD, LED) TVs

Frost Free Refrigerators

Convection Microwave

Blue Ray DVD Players, MP3s

CRT TV

Direct Cool Refrigerator

Basic Microwave

Cassette Players

4. Growth drivers 

Key growth drivers include:

 

Continued economic growth demonstrated through 8.4% CAGR growth in GDP over

last 5 years

Favourable demographics; 64% of the population in working age category

Increasing Urbanization, nuclear families

Increase in disposable incomes; which drives consumption

Increasing affordability coupled with declining prices of products

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Lower consumer product penetration

Availability of new products and technologies,

Easy financing schemes and

Increase in organized retail

 

Rural Markets offer a big opportunity

 

Rural Consumer durables markets is growing by 30 per cent currently, expected to

grow by 45 per cent in FY12

Approximately 69 per cent population resides in rural India yet only 35 per cent sales is

contributed by rural markets. However, this sales contribution is expected to increase to

~45 per cent in near future.

Rural markets are expected to post much faster growth than urban markets in medium

term led by

o Increasing rural Income with higher contribution from non farm income.

o Miniscule penetration (5-7 per cent) in many product categories generating

demand from first time buyers

o Increased distribution reach of consumer durable companies

o Customized products for rural consumers

o Product awareness through advertising

o Growth is mainly contributed by first time buyers of products unlike replacement

demand in urban markets

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Improved rural infrastructure, agricultural reforms, power availability will boost growth

going forward.

Entry of private labels in rural market may fuel competition.

 

Key Challenges

 

Intense competition among players - leading to higher ad spends and lesser pricing

power, thereby lowering margins

Increase in raw material prices – major raw materials (metals) are exhibiting increasing

trend posing margin pressures; however, shift in product mix to partially offset increase

in input costs over the medium term

Changes in technology - making product lifecycles short

Rural distribution - availability of products to masses is difficult as 68 per cent of India’s

population still lives in rural areas.

Entry of cheap products - as private labels in organized retail

 

 

5. Company Profiles 

 

Samsung India  

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Samsung India commenced its operations in India in December 1995, today enjoys a

sales turnover of over US$ 1 billion in just a decade of operations in the country.

Samsung design centres are located in London, Los Angeles, San Francisco, Tokyo,

Shanghai and Romen. Samsung India has its headquartered in New Delhi and has a

network of 19 Branch Offices located all over the country. The Samsung

manufacturing complex housing manufacturing facilities for Colour Televisions,

Colour Monitors, Refrigerators and Washing Machines is located at Noida, near

Delhi. Samsung ‘Made in India’ products like Colour Televisions, Colour Monitors and

Refrigerators are being exported to Middle East, CIS and SAARC countries from its

Noida manufacturing complex. Samsung India currently employs over 1600

employees, with around 18% of its employees working in Research & Development.

 

Whirlpool India

 

Whirlpool was established in 1911 as first commercial manufacturer of motorized

washers to the current market position of being world's number one manufacturer

and marketer of major home appliances. The parent company is headquartered at

Benton Harbor, Michigan, USA with a global presence in over 170 countries and

manufacturing operation in 13 countries with 11 major brand names such as

Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. Today, Whirlpool

is the most recognized brand in home appliances in India and holds a market share

of over 25 per cent. The company owns three state-of-the-art manufacturing facilities

at Faridabad, Pondicherry and Pune.

 

LG India

 

LG Electronics was established on October 1, 1958 (As a private Company) and in

1959, LGE started manufacturing radios, operating 77 subsidiaries around the world

S.K.P.I.M.C.S 2011-‘13 Page 26

with over 72,000 employees worldwide it is one of the major giants in the consumer

durable domain worldwide. The company has as many as 27 R & D centers and 5

design centers. Its global leading products include residential air conditioners, DVD

players, CDMA handsets, home theatre systems and optical storage systems.

Hitachi India

Hitachi India Ltd (HIL) was established in June 1998 and engaged in marketing and

sells a wide range of products ranging from Power and Industrial Systems, Industrial

Components & Equipment, Air Conditioning & Refrigeration Equipment to

International Procurement of software, materials and components. Some of HIL’s

product range includes Semiconductors and Display Components.

 

Godrej India

Godrej India was established in 1897, the Company was incorporated with limited

liability on March 3, 1932, under the Indian Companies Act, 1913. The Company is

one of the largest privately-held diversified industrial corporations in India. The

Company has a network of 38 Company-owned Retail Stores, more than 2,200

Wholesale Dealers, and more than 18,000 Retail Outlets. The Company has

Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo (Sri Lanka),

Riyadh (Saudi Arabia) and Guangzhou (China-PRC).

 

Sony India

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Sony Corporation, Japan, established its India operations in November 1994. In

India, Sony has its distribution network comprising of over 7000 channel partners,

215 Sony World and Sony Exclusive outlets and 21 direct branch locations. The

company also has presence across the country with 21 company owned and 172

authorized service centres.

 

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Chapter 4

4.1 Company Profile

Founded 7th May, 1897, Lalbaug, Mumbai

Founder(s) Ardeshir Godrej, Pirojsha Godrej

Headquarters Mumbai New Delhi, Chennai,

Key people Adi Godrej (Chairman)

Products Chemicals & Commodities, ITES

Real Estate, Appliances, fmcg

Office furniture, desk

Chair, cupboards

Trade and Market North America, South America

Western America, Eastern America

Website www.godrej.com

Companies 10

No. of Employees over 10000 people

Sales Turnover 1.1 billion US $

Main Market East Asia

South East Asia and Africa

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The Godrej Group is one of the respected business houses of India. The group has diverse business interests ranging from engineering to personal care products. Companies operating under the Godrej Group are involved in a host of businesses - from locks and safes to typewriters and word processors, from refrigerators and furniture to machine tools and process equipment, from engineering workstations to cosmetics and detergents, from edible oils and chemicals to agro products.

HISTORY OF GODREJ

The Company celebrated its centenary in 1997. In 1897 a young man named

Ardeshir Godrej gave up law and turned to lock making. Ardeshir went on to make

safes and security equipment of the highest order, and then stunned the world by

creating toilet soap from vegetable oil.

Ardeshir Godrej Pirojsha Godrej

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His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej towards becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling industrial garden township (ISO 14001-certified) now called Pirojshanagar in the suburbs of Mumbai. Godrej touches the lives of millions of Indians every day. To them, it is a symbol of enduring ideals in a changing world.

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First generation the two brothers were the founders, second generations focused

towards diversification of business by investing of acquiring more business in the

leadership of Mr Naoroji godrej, third generation in the leadership of Mr. Adi godrej, is

keener to keep hold on core business functions

The word Godrej etched into the metal of his locks stood for trust, security and reliability. The name Godrej is today locked away in the mind of every Indian as a symbol of responsible entrepreneurism, self reliance through industry and prosperity from indigenous resources. It started off with locks and then a stunned world looked up in awe when Godrej made soaps from vegetable oils. What started as dream has become a movement. From hi-tech engineering solutions, futuristic security and entry systems to a wide range of consumer and personal products, Godrej, touches the lives of millions of Indians every day. Today Godrej is the bridge between the future and in hundred years of history. It is a living code of ethics for Indian industry as it races into the forefront of global dominance. Godrej has legacy of 111 years is a story of success, achievements, development & change, a story of a family committed to the nation. Godrej is a highly respected brand and besides it's high quality products, is known for it's business ethics. The brand Godrej has a tremendous recall in India, and is gaining fast access in the International markets. Besides manufacturing set up in India, we also have manufacturing facilities in Singapore, Malaysia, Vietnam, Oman and a marketing office out of UAE.

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PRODUCT LINE OF GODREJ

Godrej follow ISO 9001 system standards & 14000 environment standards.

Godrej products range encompasses a wide range of products to suit homes,

offices, educational institutions & industrial requirements. To name a few,

Educational furniture: School desks, steel tables for teachers, chairs for

teachers, library stacks, training room chairs, book cases

Steel furniture - Cupboards, Lockers, filing cabinets, sliding door units, tambour

door units.

Office furniture: Chairs, desks, partitions, work stations .

Security equipment: Safes, fire resisting filing cabinets, strong room doors, fire

safes, data safes, fire doors, steel doors.

Warehousing solutions: Material handling equipment, shelving and racking,

metal shelves

Locks : Wide range locks covering mortise, pad locks, night latches, door closers .

Appliances: Water Purifiers, Refrigerators, Air conditioners and WashingMachines.

Godrej has manufacturing base in Mumbai, Chandigarh, Chennai & Goa.

Interio was established in 2006 and is one of the largest business Groups of Godrej & Boyce.

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Godrej & Boyce Mfg. Co. Ltd.:

Godrej & Boyce manufactures a spectrum of consumer

products and industrial products. The Consumer products include Appliances (Refrigerators,

Washing Machines, Air Conditioners, Microwaves, and DVD Players), Locks, Furniture,

Security Equipment, Office Automation, Conferencing Solutions, and vending Machines.

Industrial Products include Storage Solutions, Automated Warehousing, Material Handling

Equipment, Process Equipment, Precision Components & Systems, Machine Tool Service,

Electrical & Electronic, Tooling, and Construction Material & Services.

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QUALITY

OF LIFE

EVERYDAY

EVERYWHERE

ENRICHING

VISION

GODREJ IN EVERY HOME AND WORK PLACE\

THE CHOICE FOR HOME AND WORK SPACE SOLUTION

Mission:-

Godrej Mission is to operate in existing and new businesses which capitalize on the Godrej brand and corporate image of reliability and integrity.

Godrej objective is to delight our customer both in India and abroad.

We shall achieve this objective through continuous improvement in quality, cost and customer service.

We shall strive for excellence by nurturing, developing and empowering our employees and suppliers.

We shall encourage an open atmosphere, conducive to learning and team work.

VALUES

Commitment to Quality Customer Orientation Dedication & Commitment Discipline Honesty & Integrity Learning Organisation Openness & Transparency Respect/Care & Concern for People Teamwork Trust

S.K.P.I.M.C.S 2011-‘13 Page 35

Godrej Consumer Product Supply Chain Management

It consists of movement of Goods from the Plants (Factories)to the Plant warehouse

(PWH) to Regional warehouse (RWH). From RWH, the Goods move to CFA and

then to Distributor and then to Retailer and finally to the Customer.

SAMPARK: New initiative connecting distributors.

SAHAYOG: connect to the suppliers.

600 distributors.

450 are A-class distributors contributing 75-80% of the total business.

150 distributors are B & C class.

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4.2 BaaN in Godrej & Boyce Supply Chain Management

BaaN is robust as it would be based on centralized system.

The implementation of BaaN was started around 2008

SAMPARK: Software cost=Rs 4.5 mn (0.1 mn USD); Hardware cost= Rs 10

mn. (0.02 mn USD)

SAHAYOG: Rs 2 mn (0.04 mn USD)

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Chapter 5

SWOT of the Company

Strength:

The Company has got wide range of branches within the country.

The Company has wide range of product line.

The Company has there respectable and believable brand name.

Company is having large number of customer with higher satisfaction.

Exchange offer.

Weakness:

The Company does not go for advertising, which is one of the biggest disadvantage

of Godrej.

Manpower is less at sale officer level so that it affecting directly on the way of sale.

The effective selling schemes are not available like payment on installments.

Sales executives are not well mannered

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Opportunities:

Godrej has more opportunities to grow as it has earned good market share in Orissa.

Technical up gradation time to time is also one of the opportunities.

Opportunity in providing exchange offer in Air-conditioners and microwave oven.

Threat:

The growing competition in the Appliances sector is threat for all manufacturing

companies so it is also threat for Godrej to stand in the market with the higher

position.

S.K.P.I.M.C.S 2011-‘13 Page 41

S.K.P.I.M.C.S 2011-‘13 Page 42

Conclusion

After the successfully completion of my summer internship I understood that market

research is an important aspects for a company throughout the life cycle of a particular

product. It helps in knowing the changing taste, preference, life style etc. of the consumer.

During the training I found company regularly make R&D for this competitive market.

With reference to my research topic that is “Logistic Management at Godrej & Boyce Mfg

Ltd”. It was found that, need more advance MIS System and need to improvise worker skill

base training and number of worker , Product range is very high but less marketing by sales

people, in new technology a paper waste should be reduce.

Eventually it can be concluded that Godrej & Boyce should be more advance, although the

supply chain management is good due long business relation with good transporter.

S.K.P.I.M.C.S 2011-‘13 Page 43

S.K.P.I.M.C.S 2011-‘13 Page 44

Suggestion

Flexibility in BaaN system

Educate new user of BaaN at entry level.

If possible project materials should be sent in single lot.

APO materials series must be same for ho as well as for local (Locks div working with

the same)

Packing method is not proper with baan. (Physically 2 pkg but in baan printing for 1

pkg)

They should reduce the usage of papers as godrej uses the strategy of green

evolution

Proper space allocation in warehouses

Appointing more workers for the ware house

Non Moving materials cleared quarterly

Materials indented at HO should be clear at spectacular time.

Materials allotted to service franchise on advance basis should be debited as per

scrap rates (colour parts)

Standard packing for evaporator, crisper, stabilizer should be in one piece.

Hc cans should be kept at mazanin floor as temp is low compare to ground floor.

S.K.P.I.M.C.S 2011-‘13 Page 45

S.K.P.I.M.C.S 2011-‘13 Page 46

Learning in the Training Period

1. You have to achieve your target within due time.

2. Patience

3. To understand the worker (how to motivate them)

4.

Enjoyment is also a part of work(work-life balance)

5. Punctuality

6. Discipline

7. Hard worker

8. patience to take tension

9. Dedication towards the work

10.continuous effort

S.K.P.I.M.C.S 2011-‘13 Page 47

11.Leading character

12.Courage to deal the situation

13.knowledge about the product

S.K.P.I.M.C.S 2011-‘13 Page 48