Acknowledgement

My Training Experience at Parikh Enterprises, Micropark Logistics Pvt. Ltd.

has been truly a fulfilling and rewarding one. I would like to thank Mr.

Hemang Parikh & Mr. Hitesh Parikh, Director of Micropark Logistics Pvt.

Ltd. Nagpur for allowing me to work with Parikh Enterprises.

The successful completion of this project work gives me an opportunity to

thank and extend my sincere gratitude to Mr. Avinash Meshram and Mr.

Fransis at Parikh Enterprises, Micropark Logistics Pvt. Ltd. who has helped

me in giving his suggestions and having shared his experience.

We immensely indebted to Mr. Lalit Khullar, Director, faculty of Tirpude

Institute of Management Education, TMU, Nagpur for giving us an

opportunity to carry out this project work.

Last but not the least I would like to thank my family and friends for their

support at every step of my life.

Amol Krushnarao Talekar

MBA, TIME, TMU

1

College Certificate

This is to certify that Mr. Amol Talekar is a bonafide student of this

institute and has successfully completed his project entitled “ Micropark

Logostics Private Limited” for partial fulfillment of course MBA

(Marketing) from Tirpude Institute of Management Education (TMU),

Nagpur.

Lalit Khullar Prof. Shraddha Shende

Director, Internal Guide

TIME, (TMU) TIME, (TMU)

2

Company Certificate

This is to certify that Mr. Amol K. Talekar student of Master of Business

Administration from Tirpude Institute of Management Education,

Nagpur has satisfactorily completed his project work entitled Supply Chain

Management, in Micropark Logistics Pvt. Ltd. Nagpur in Administrative

Department of Ranbaxy from 20th May,2009 to 23rd July, 2009.

Authorized Signature

3

Executive Summary

Micropark Logistics Pvt. Ltd is one of the leading Logistical Company in

India focused on Distribution & Warehousing of Pharmacitical, Cellular

products, etc.

The project entitled “Supply Chain Management in Micropark Logistic Pvt.

Ltd. Nagpur” was carried out to understand the logistical operational

functions & operational areas of supply chain management. Administrative

working like taking orders from the parties or clients , billing etc by using

the SAP software. Also claiming of the products is done in case the product

gets damaged, broken or gets expired or is out of date. Billing of the product

is done on the basis of manufacturing date of the product and the production

of the product is done batchwise.

4

Table of content

Sr.No Particulars Page No

1. Introduction 6

2. Review of Literature 15

3. Introduction to company 16

4. Introduction to topic 26

5. Research Methodology 30

6. References 35

7. Conclusions 36

8 Suggestions 37

5

Chapter 1

Introduction

6

Introduction to Supply Chain Management :-

Supply chain management (SCM) oversees and optimizes the processes of

acquiring inputs from suppliers, converting those inputs into a finished

product, and delivering those products—or outputs—to customers. SCM is

an umbrella term that refers to a variety of approaches for the management

of natural and human resources from the supplier to the manufacturer or

service provider to the consumer and back . This includes the identification

and creation of new opportunities for products and services in cooperation

with upstream and downstream partners, and the involvement of internal as

well as external stakeholders in decision making on supply chain matters.

Traditionally, a supply chain is:

A network of companies that exchange resources such as materials and

information to deliver products to customers. Supply chains consist of a

company, its suppliers, its distributors, and its customers.

In the traditional supply chain structure resources flow downstream to the

consumer. The supply network consists of a focal company and its suppliers,

retailers, and customers. Figure shows the basic structure of a supply chain.

Supplier Company CustomerRetail

7

A supply chain is the stream of processes of moving goods from the

customer order through the raw materials stage, supply, production, and

distribution of products to the customer. All organizations have supply

chains of varying degrees, depending upon the size of the organization and

the type of product manufactured. These networks obtain supplies and

components, change these materials into finished products and then

distribute them to the customer.

Managing the chain of events in this process is what is known as supply

chain management. Effective management must take into account

coordinating all the different pieces of this chain as quickly as possible

without losing any of the quality or customer satisfaction, while still keeping

costs down.

The first step is obtaining a customer order, followed by production, storage

and distribution of products and supplies to the customer site. Customer

satisfaction is paramount. Included in this supply chain process are customer

orders, order processing, inventory, scheduling, transportation, storage, and

customer service. A necessity in coordinating all these activities is the

information service network.

In addition, key to the success of a supply chain is the speed in which these

activities can be accomplished and the realization that customer needs and

customer satisfaction are the very reasons for the network. Reduced

inventories, lower operating costs, product availability and customer

satisfaction are all benefits which grow out of effective supply chain

management.

8

The decisions associated with supply chain management cover both the

long-term and short-term. Strategic decisions deal with corporate policies,

and look at overall design and supply chain structure. Operational decisions

are those dealing with every day activities and problems of an organization.

These decisions must take into account the strategic decisions already in

place. Therefore, an organization must structure the supply chain through

long-term analysis and at the same time focus on the day-to-day activities.

Furthermore, market demands, customer service, transport considerations,

and pricing constraints all must be understood in order to structure the

supply chain effectively. These are all factors, which change constantly and

sometimes unexpectedly, and an organization must realize this fact and be

prepared to structure the supply chain accordingly.

Structuring the supply chain requires an understanding of the demand

patterns, service level requirements, distance considerations, cost elements

and other related factors. It is easy to see that these factors are highly

variable in nature and this variability needs to be considered during the

supply chain analysis process. Moreover, the interplay of these complex

considerations could have a significant bearing on the outcome of the supply

chain analysis process.

Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the

movement of products along it. The supply chain starts and ends with the

customer.

Customer:

9

The customer starts the chain of events when they decide to purchase a

product that has been offered for sale by a company. The customer contacts

the sales department of the company, which enters the sales order for a

specific quantity to be delivered on a specific date. If the product has to be

manufactured, the sales order will include a requirement that needs to be

fulfilled by the production facility.

Planning:

The requirement triggered by the customer’s sales order will be combined

with other orders. The planning department will create a production plan to

produce the products to fulfill the customer’s orders. To manufacture the

products the company will then have to purchase the raw materials needed.

Purchasing:

The purchasing department receives a list of raw materials and services

required by the production department to complete the customer’s orders.

The purchasing department sends purchase orders to selected suppliers to

deliver the necessary raw materials to the manufacturing site on the required

date.

Inventory:

The raw materials are received from the suppliers, checked for quality and

accuracy and moved into the warehouse. The supplier will then send an

invoice to the company for the items they delivered. The raw materials are

stored until they are required by the production department.

Production:

10

Based on a production plan, the raw materials are moved inventory to the

production area. The finished products ordered by the customer are

manufactured using the raw materials purchased from suppliers. After the

items have been completed and tested, they are stored back in the warehouse

prior to delivery to the customer.

Transportation:

When the finished product arrives in the warehouse, the shipping department

determines the most efficient method to ship the products so that they are

delivered on or before the date specified by the customer. When the goods

are received by the customer, the company will send an invoice for the

delivered products.

11

Process View of a Supply Chain

Supply chain process cycle illustrates the four cycles and five supply chain

stages

Customer

order cycle

Retailer

Replenishment

cycle

DistributorManufacturing

cyce

Manufacturer Procurement

cycleSupplier

12

Customer

Importance of Supply Chain Management

Of late, supply chain management is gaining growing importance because of

the following reasons :

The total time for materials to travels through the entire supply chain

management can be quite long . Since the materials spends so much

time waiting in inventory at various stages in the supply chain, there is

a great opportunity to reduce the total supply chain cycle time leading

to a corresponding reduction in inventory, increased flexibility,

reduced costs and better deliveries.

Many companies have drastically improved their internal operations

and now find it necessary to consider relations with external customer

and supplier in the supply chain to gain further improvements in their

operations.

Supply chain thinking is an application of systems thinking and

provides a basic for understanding processes that cut across a

company’s internal department and processes that extend outside the

company as well.

The goals of supply chain management are to reduce uncertainty and

risks in the supply chain, thereby positively affecting inventory levels,

cycle time, processes and ultimately end-customer service levels.

13

The design, planning and operation of supply chain have a strong

impact on overall profitability and success.

Supply chain management has become a hot competitive advantage as

companies struggle to get the right stuff to the right place at right

time.

All the “Total Quality Management”, “Just-in-Time System”,

“Reengineering”, “Team work” and “Delighting the Customers”

depends on the relationships with supplier and distributors who are

part of the supply chain.

Supply chain management includes transportation vendors, suppliers,

distributors, banks, credit and cash transfers, bills payable and

receivable, warehousing and inventory levels, order fulfillment and

sharing customer, forecasting and production information.

14

Literature Review

Abstract:

In a competitive business environment that requires strategy and innovation

to improve the bottom line, supply chain management has been vital in

creating competitive advantage. Increasingly, companies are also identifying

sustainability as an opportunity to create competitive advantage. This project

explores supply chains as a leverage point in advancing sustainable

development. Corporations have developed different tools to interact with

their suppliers on sustainability. Three of these devices were analyzed

against a framework for strategic sustainable development to identify some

of their strengths and weaknesses. A general set of criteria for sustainable

supply chain management devices that employs a strategic, whole-systems

perspective was then developed.

15

Chapter 2

Introduction

To

Company

16

Introduction to Micropark Logistics Private Ltd.

Micropark Logistics Private Limited is in the business of DISTRIBUTION,

WAREHOUSING and C & F Agencies. ‘Micropark’ is one of the pioneer

operators in the field of Supply Chain Management in Central India.

Micropark Logistics Pvt. Ltd. incorporated in year 2004 is headquartered in

Nagpur & has branch offices in Pune, Mumbai, Hyderabad & Indore.

Micropark as an organization works for achieving the highest level of

customer satisfaction on a continuous basis. ‘Customer Orientation’ is core

to all the processes involved in area of its operation. Due to its process

driven approach Micropark Group is one of the first organizations in Central

India to receive ISO 9000:2001 certification across it sister concerns.

The group’s entry in the field of supply chain management started with one

of its sister concern M/S Mehadia & Sons being appointed as the C & F

agents’ in the year 1984. Since then ‘Micropark’ as a group has grown into

a Logistic Solution provider for around 20 companies of high repute in

Pharmaceutical, Automobile, Consumer durables & FMCG sectors. The

emergence of Micropark as a reliable partner in providing SCM solution for

these companies is the result of its customer-oriented approach & its

continuous strive to achieve highest level of Customer satisfaction through

process driven approach in every aspect of its operations. The group keeping

with the times is using IT solutions in its entire operations.

17

Micropark group handles operations for Mahindra & Mahindra, Zandu

Pharmaceuticals, RFCL, DIESL, Biological E, Indoco Remedies, S.C.

Johnson (All out), AGIO Pharma, Nokia (CDMA), SONY Ericsson, V John,

Biocon, Peter England, Amway, Pfizer, Ranbaxy, Torrent, Cadila, Sarabhai,

Alembic, Levis, Glenmark through its sister concerns viz. Parikh

Enterprises, Mehadia & Sons, Micropark Infotrade, Micropark Distributors.

Company Profile:

Micropark as an organization works for achieving the highest level of

customer satisfaction on a continuous basis. ‘Customer Orientation’ is core

to all the processes involved in area of its operation. Due to its process

driven approach Micropark Group is one of the first organizations in Central

India to receive ISO 9000:2001 certification. The emergence of Micropark

as a reliable partner in providing SCM solution for these companies is the

result of its customer-oriented approach & its continuous strive to achieve

highest level of Customer satisfaction through process driven approach in

every aspect of its operations. The group keeping with the times is using IT

solutions in its entire operations.

Ranbaxy Laboratories Limited, India's largest pharmaceutical company, is

an integrated, research based, international pharmaceutical company,

producing a wide range of quality, affordable generic medicines, trusted by

healthcare professionals and patients across geographies. Ranked 8th

amongst the global generic pharmaceutical companies, Ranbaxy today has a

presence in 23 of the top 25 pharmaceutical markets of the world. The

18

Company has a global footprint in 49 countries, world-class manufacturing

facilities in 11 countries and serves customers in over 125 countries.

In June 2008, Ranbaxy entered into an alliance with one of the largest

Japanese innovator companies, Daiichi Sankyo Company Ltd., to create an

innovator and generic pharmaceutical powerhouse. The combined entity

now ranks among the top 15 pharmaceutical companies, globally. The

transformational deal will place Ranbaxy in a higher growth trajectory and it

will emerge stronger in terms of its global reach and in its capabilities in

drug development and manufacturing.

Warehouse

Warehousing plays a key role in the supply chain management. With its

primary aim to control the movement and storage of materials within a

warehouse and process the associated transactions, including shipping,

receiving, put away and picking it requires experience and service set up of

its own to give a world class service.

Keeping with the tradition of customer centric operations & providing

services with highest quality standards Micropark Warehouses offer modern

features, which are unmatched & ‘first’ in the Industry in the region.

Standard warehousing norms are followed meticulously to give a smooth

and flawless service. Micropark has redefined the definition of Warehouses

and these facilities can be called as SHOWHOUSES.

Micropark offers warehousing facilities at Nagpur, Pune, Mumbai,

Hyderabad and Indore. These facilities are strategically located to offer

19

operational advantages. Micropark is looking for expansion of its

warehousing business in other key cities with similar modern infrastructure

and reliable services.

Distribution

Distribution is a critical component in success of any brand in

Pharmaceutical, Consumer & Other Sectors. Micropark Group is one of

Central India’s leading business groups with multiple businesses spanning

across the Logistics space. It is one of the pioneer operators in the field of

DISTRIBUTION through its various affiliates.

The Micropark Group presently has distribution facilities in the cities of

Nagpur, Pune, Mumbai, Hydrabad and Indore. The group is providing

Distribution services to 20 companies of high repute in Pharmaceutical &

Consumer sectors.

Company Services:

C & F Agencies

Micropark Group is one of the pioneers in the C & F Agency business with

Top Class warehousing facilites. The C & F Agency business operates over

2.0 Lac Sq. ft. of warehousing space at multiple locations.

‘C & F Agency’ has become a critical component in successful Sales &

Distribution of any brand / product in Pharmaceutical, Consumer & other

sectors. Over 20 reputed companies have put their faith in the ability of

Micropark Group to take care of this vital component.

20

Micropark is one of the first & very few organizations in Central India to

have been provided ISO 9000:2001 Certification across the entire Group

Companies.

Micropark Group’s list of clients includes reputed companies like Indoco,

Ranbaxy, Zandu Pharmaceuticals, Amway, Pfizer, Pharmacia, Torrent, East

India, Himalaya Drugs, Bioilogical E, Cadila, Agio, Fourts India,

S.C.Johnson, Indo French, Anglo French, BE, AIOCD Ltd(Sandoz), Troika

Pharmaceuticals.

The group has provided top class facilites at Nagpur, Pune, Mumbai,

Hydrabad & Indore for CFA Operations

21

FIGURE SHOWS THE WORKING PROCESS OF CFA

22

Selected Client Engagements:

Agio Pharma Ltd.

AIOCD Ltd.(Sandoz)

Alembic Pharma

AMWAY

Anglo French Drug Ltd.

Cadila Pharmaceuticals Ltd.

DIESEL Ltd

EAST India Pharmaceuticals

Fourts India Pvt. Ltd.

Himalaya Drugs

Indo French Labs

Indoco Remedies Ltd.

PFIZER Limited

PHARMACIA India

RANBAXY Laboratories Ltd.

Shreno Ltd (YEAR GLASS)

TATA Indicom

Troika Pharmaceuticals Ltd.

Unichem Labs Ltd (Foreva division)

ZANDU Pharmaceuticals

23

MICROPARK GROUP COMPANIES

MICROPARK COMPANIES BUSINESS IS CONDUCTED THROUGH

FOLLOWING FIRMS:

MICROPARK LOGISTICS PVT. LTD. Nagpur, Pune, Hydrabad,

Mumbai, Indore

PARIKH ENTERPRISES Nagpur, Pune

MICROPARK DISTRIBUTORS Mumbai

MICROPARK INFOTRADE Nagpur

MICROPRO S/W SOLUTIONS PVT. LTD. Nagpur, UAE

MEHADIA & SONS C & F DIVISION Nagpur, Pune

R.J.TADELINKS Nagpur

MEHADIA TRADELINKS Mumbai

MEHADIA & SONS Nagpur

VASANTLAL BROTHERS Nagpur

AJIT PHARMATICS Nagpur

ADDON RETAIL PVT. LTD. Mumbai

SANNITI RETAIL PLUS PVT. LTD. Nagpur

24

Vision & Mission of Micropark Pvt. Ltd.

Vision

To become a leading Multi Locational National Level company providing

integrated end-to-end supply chain solutions like warehousing, inventory

management, cash flow management and marketing of product and services.

Mission

To provide quality services across India in the areas of Warehousing, C & F

Agencies, Dealerships, Distributorships and Marketing of product &

services.

Vision & Mission of Ranbaxy

vision

To achieve significant business in proprietary prescription products by 2012

with a strong presence in developed markets.

Mission:

To be one of the worlds’s leading strategic inputs provider while

maintaining highest Quality & confidentiality standards with a global

outlook. We will continuously strive for perfection while even attracting the

best talent across globe and we will keep integrity, ethics, professionalism

and teamwork as our pillars for success. We will even contribute in the local

communities continuously within the geographies we operate in.

25

Chapter 3

Introduction

To

Topic

26

Operational Manager

This role manages order processing, ensuring that orders are properly

fulfilled, payment is received, and orders are shipped. The Operations

Manager can search for customer orders, view details, manage order

information, and create and edit returns. For the reseller and hosting models,

this role is responsible for customer service, and oversees customer service

in the other models.

Historical Stock Status Calculations

Maintain histories of cost changes, including Average Perpetual, Last In-

First Out (LIFO) Periodic, and First In-First Out (FIFO) Periodic values.

Bill of Materials

Maintain full bill record of the products which moves out of store or sold to

the parties for analyzinge to which product is given to particular party.

Detailed Insight into Inventory Usage

• More effectively analyze sales, transfers, and materials used for

manufacturing by drilling down to each transaction that reduces inventory,

including those in debited and credited accounts.

• Access supply and demand information using Allocated and On Order drill

downs and view item allocations in existing orders quickly and easily.

• Narrow search results by providing date ranges for item transaction

inquiries.

27

Extended Pricing

• Personalize pricing by combining date ranges and quantity break options

with special net, percentage-off, or value-off pricing for specific customers

or groups of customers.

• Use relational pricing to update customer price lists instantly and reflect

fluctuations with your supplier when you change your base net prices.

• Choose the pricing method that works best for each item, including pricing

by currency amount, percent of list, percent markup based on current or

standard cost, or percent margin based on current or standard cost.

• Make individual or mass updates to your pricing lists with helpful wizards.

• Easily set up and maintain price lists using unlimited combinations of units

of measure, price levels, and currencies.

28

Flow diagram shows the Billing process or Order process of products

Order taken

Product entry in the system

Invoice / Bills (office to stores)

Product separation

Product checking

Product packing

Dispatching

29

Chapter 4

Research Methodology

30

Objective:-

To understand the logistical operational functions of Supply Chain

Management

Understanding of the operational areas of logistics management

and their interrelationships.

Data Collection:

Market Penetration is the sole of Distribution Business. Companies use

market penetration as a key factor in implementing their growth strategy &

most of their marketing activity revolves around penetration. The

Distributor’s set up plays a very important role in achieving good Market

penetration for any product, brand or company.

At Micropark meticulous planning & implementation goes in to achieve

maximum market penetration. The distribution set up at Micropark consists

of trained manpower backed by strong planning, processes and

infrastructure.

Highlights of Microparks distribution set up:

Coverage:

More than 1500 retailers & 200 Distributors/ stockiest are covered in Nagpur

& Vidarbha region.

31

Manpower:

Well-trained and motivated Sales team comprising of 2 Sales managers, 2

Sales Supervisor, managing a team of 15 Sales Representatives covering

every nook & corner of the market.

Sales Management tools:

Effective implementation of sales planning & monitoring tools for ensuring

effective Market coverage & Product availability. This comprises of

Permanent Journey Plan, Standard Route plans, Visit reports & Outlet Take-

off report.

Market Coverage:

Regular market coverage cycles ensuring reach to every retailer are planned.

The sales team reaches every retailer twice / thrice in a week depending

upon the planned routes for different Companies & product lines. The sales

team also ensures proper merchandising activities as per the Marketing Plan/

Campaigns for various products.

Infrastructure:

2 Retailing/ Delivery Vans ,Computerized billing, SMS Service to keep the

retailers/ stokiest informed about latest schemes and offers.

Market Feedback:

Regular surveys are conducted for different products , which ensures regular

feedback to the companies.These feedbacks have provided the companies in

improvising and making effective marketing plans.

32

Recognition: Timely & Suitable Incentive & recognition policies ensure a

motivated sales team.

Primary Data:

Face to face interview with the Doctors

Telephonic Interview

Street Mapping for understanding the various requirment

Secondary Data:

Banners & Posters

Channel listing on websites

Annual Brochure of Medical Association & different trade

Associations

Methodology:

• The design of research (medium of interaction)

Participant observation

Personal Interviewing (by appointment)

Telephonic Interview

Sampling Plan:-

1. Sampling universe:

It is space where our study is conducted upon area defined to the

study. In this project sample universe is restricted to Hospitals,

Doctors and clinics of Nagpur city.

2. Sample size:

33

Since a vast sample gives more reliable information so we took the

sample size of 50 stores (approx) in the city.

3. Sample unit:

The sample unit means How many Hospitals,Doctors called per

day .In this project sample unit is 15 Hospitals, Doctors /day

4. Sampling Frame:

Sampling frame means the boundaries under which survey has to be

completed. In this project sampling frame is medicals of Nagpur city.

5. Geographical location:

Maharashtra

6. Respondents profile:

Hospitals,Doctors, Medical shops

Clinics / Medical stores

REFERENCES

34

Marketing Management by Philips Kotler

A text book on Supply Chain Management

Principle of logistical management by Omprakash G. Sony

Beamon Benita, M. 1999, ―Designing the green supply chain,

Logistics Information Management 12 (4):332-342.

Davies, Tony., 2006, ―Collaborate to innovate, Supply Management

11 (1):34.

http://www. microparkindia.com

http://www.supplychain.com/sap

CONCLUSION

35

“It is said that a chain is only as strong as its weakest link. This holds true

for the supply chain as well”.

Online administrative working by advanced SAP software

Good contacts helpful in maintaining better customer relationships

Large market coverage, and easy availability of products

Delivery of products is done on the basis of early batch production

SUGGESTIONS

36

Keep doing various Events and Promotional Activities to boost the sales of

the Brand, some are mentioned below:

Effective implementation of scheme & offer announced by the

company.

Display of POP Material, Banners, Posters, etc. at Retail Outlets

Arranging dealer meets

Recreational Activities with dealers like picnics and cricket matches.

37