Analysis of Logistic Department through Supply Chain Management

GRD Journals- Global Research and Development Journal for Engineering | Volume 5 | Issue 7 | June 2020 ISSN- 2455-5703

Analysis of Logistic Department through Supply Chain Management Rahul B. Gade Student Department of Mechanical Engineering JSPM Imperial College of Engineering and Research Wagholi, Pune Manish R. Dubey Student Department of Mechanical Engineering JSPM Imperial College of Engineering and Research Wagholi, Pune

Sujit S. Doke Student Department of Mechanical Engineering JSPM Imperial College of Engineering and Research Wagholi, Pune

Suraj P. Dhanawale Student Department of Mechanical Engineering JSPM Imperial College of Engineering and Research Wagholi, Pune

Deepak S. Patil Lecturer Department of Mechanical Engineering JSPM Imperial College of Engineering and Research Wagholi, Pune

Abstract The paper mainly aims at function of purchase of material in logistics department which are to be studied through supply chain management. The role of packaging sign off sheet brings efficiency of industries into rise. We also come to know that by using various manufacturing tools like JIT, KANBAN, TIMWOOD etc. efficiency of supply chain is increases. Some portion of purchase management is studied subsequent to industrial aspect. The content below shows the representation of logistics and purchase of material processes flows in relevant manner. Purchasing describes the process of buying. This paper also aims at reforming purchase model which becomes reason about lacking in efficiency of supply chain management.

Keywords- Logistics, Supply Chain Management, Material Purchase

I. INTRODUCTION Supply Chain Management (SCM) is the arrangement, planning, control, and realization of the product flow, range from designing and purchasing through production and distribution to the final consumer in accordance with market requirements for costeffectiveness. The SCM system allows significantly better satisfy the demand for the company's products and significantly reduce the costs of logistics and purchasing. SCM covers the entire cycle of purchasing of raw materials, production and product distribution.

Fig.1: Processes of Supply Chain Management

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Analysis of Logistic Department through Supply Chain Management (GRDJE/ Volume 5 / Issue 7 / 001)

Generally, researchers identify six main areas that supply chain management focuses on: production, supplies, location, warehouse inventory, transportation, and information. Purchasing describes the process of buying. Supply chain management is the coordination of production inventory, location transportation among the participant in supply chain to achieve the best mix of responsiveness .It is the alignment of firm that bring products or services to market. Purchasing can be divided into two broad categories, large and small purchases.

Logistics 4.0- Modern logistics is greatly influenced by the processes of globalization and internationalization. In the rapidly developing process of economy globalization, transportation management issues are of great importance. Logistics and transport have been increasingly playing a pivotal role in international trade relations. The lack of many serious tools for evaluating country-level logistics efficiency is partly due to research generally being done more commonly at a micro-logistics level rather than at the level of global logistics.

Fig. 2: logistics 4.0 maturity model concept

According to the Fig.2, the L4.0 (Logistics 4.0) maturity model has an evolutionary nature. This means that an enterprise uses more up-to-date IT solutions at higher L4.0 maturity level. The exception is the L4 level, which is characterized by the features of the Internet of Things (IoT). It was concluded, that the use of the entire group of these tools does not have to be supported by the implementation of IT solutions from the L3 level. To assign technologies and IT tools, the time of its appearance on the market had an influence. It was assumed that the higher the L4.0 maturity level, the more modern is the solution (shorter time on the market). For example, in 1975 there were recorded the first 150 implementations of the MRP class system uses in enterprises when in 2007 Steve Jobs presented the first iPhone to the world. Authors have performed periodization for maturity levels for all L4.0 components of presented L4.0 maturity model.

Purchasing- Purchasing describes the process of buying. Procurement plays an important role in CE based operations as supplier selection, strategic supplier partnerships, green certifications and green process adopted by suppliers are all activities that enable the supplier to support the SD goals of a firm.. (Joyce, 2006) Purchasing can be divided into two broad categories, large and small purchases, based on seven characteristics of purchased product – volume, specificity, technological complexity, essentiality, fragility, variability, and economic value.

The growing importance of supply chain management has led to an increasing recognition of the strategic position of purchasing. Before, purchasing were often an underestimated task in management levels but today purchasing plays a key role in terms of adopting a cooperative approach to create innovation-oriented and cost-oriented products .The challenge here is that an enormous increase in product variance has a serious impact on the value creation processes throughout the supply chain and causes the company an enormous effort in terms of costs.. In order to meet this challenge, an agile supply chain strategy is necessary which is defined through flexibility by adapting quickly and effectively to rapidly changing customer needs and a cost optimization approach across the procurement chain. One important approach of cost optimization across the procurement chain is the elimination of waste in the form of a reduction of unnecessary product variance. Therefore, in this study we expect to extend this stream of research by focusing on one important gap in the literature: The focus on the reduction of existing product variance through the purchasing perspective.

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Analysis of Logistic Department through Supply Chain Management (GRDJE/ Volume 5 / Issue 7 / 001)

Fig. 3: Purchase of material management system

In this study, the variance is often not visible due to a so called operation-blindness ,, a communication lack between R&D, purchasing and the supplier or simply due to the missing time to examine and if necessary to eliminate unnecessary variants.

In this research, the product “pressure piece� of this automotive Tier 1 supplier will be analysed regarding variance, evaluated and optimized through a new method.

II. LITERATURE REVIEW Andree boiko studied the information system for supply chain management.it explains mainly current status and future direction of the use of information systems for supply chain management for companies with multicomponent production.

Christian Ulh studied purchasing management: the optimization of product varience. The purpose of this paper is to present a new optimized approach for product variance from the purchasing perspective.

JLA Zhenyuan Research and development of purchase management system management system for Chinese medium and small manufacturing Enterprises.

Dr. Vijendra Pal Saini studied purchasing and material management and also discussed about Purchasing activity in the i supply chain management Carolina warner studied logistics 4.0: maturity in service industry. These paper is proposed approach allows for selfassessment of advancement in Logistics 4.0 implementation. Considering the results, directions for further actions may be determined.

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Analysis of Logistic Department through Supply Chain Management (GRDJE/ Volume 5 / Issue 7 / 001)

III. METHODOLOGY – –

The study was conducted in MNC Company. The main task was to observe carefully the supply chain of a manufacturing cooling components of automobile such as hvac, condenser, blower, evaporator, etc.In. In that logistic department taken the authority of bringing parts of a particular component from a supplier to manufacturing a component and delivering a final product to the company (customer).

Fig. 3: Kanban production line

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The further work was carried as sending packaging sign off sheet via email to each customer related to a particular component parts.

– These packaging sign of sheet gives detail information of parts and when to be delivered to company side.

– These sheet works on specific manufacturing tools like JIT and KANBAN process. Supplier send those material included in packaging sign off sheet to customer (company) within given time. With that sheet.

– Sheet is return into company for auditing purpose.

– As the material received in company the next process is of documentation in logistic department.

– After documentation sheet is saved in SAP software for auditing purpose.

– For these purpose one team is recruited to keep eye on material oftenly near supplier side to check whether the material in bin is kept safely and at a proper quantity.

The process involved in packaging sign off sheet is given below:-

Fig. 4: Process of SAP software

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Analysis of Logistic Department through Supply Chain Management (GRDJE/ Volume 5 / Issue 7 / 001)

Fig. 5: Part List

Fig. 6: Packaging Sign Off Sheet

IV. CONCLUSION In these paper we come to conclusion that purchasing of material using packaging sign off sheet play an important role in logistic department. The supply chain of bringing material from various suppliers to the making a particular product and selling it customer shows the importance of packaging sign off sheet. The analysis of paper direct focus mainly on purchase material, packaging sign off sheet, work in logistics department and overview of supply chain management system. The overall process in supply chain management system works on many manufacturing tools, some are included in paper as per work carried out. These tools are JIT and KANBAN a Japanese technics. These tool increases efficiency of supply chain management system of particular small scale or large scale industry.

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Analysis of Logistic Department through Supply Chain Management (GRDJE/ Volume 5 / Issue 7 / 001)

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