Documente Academic
Documente Profesional
Documente Cultură
ON
Analysis of
1
Mr. Arun Nainta Lalit Badoga (09MB03)
(Chief Manager ACC-Shimla) Vivek Sharma (09MB08)
Vipin Jaryal (09MB25)
INDEX
Page No.
2
• Sources of Data Collection
• Scope of the study
• Need for the study
• Limitations of the study
Page No.
3
ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the
success of any venture. So hereby, it’s our pleasure to record thanks & gratitude to the
persons involved. First, we thank Mr. Arun Nainta, Area-Incharge Shimla, ACC-
Cement, for his continuous support, stimulating Suggestions and helping us all the
time during our project. Mr. Arun Nainta has been a friend and a guide. He was
always there to meet & talk about our ideas. He was there to help us out if we ever
had any problem.
We are deeply indebted to our esteemed HOD Dr. Piar Chand, National
Institute of Technology- Hamirpur (H.P.), for his kind and constant encouragement.
A special thank goes to Mr. Rominder Dhaulta and Mr. Kailash Kumar. Both
of them were always ready to listen & give advice.
We would like to extend our thanks to Mr. Anish Kundel Area-Incharge,
ACC-Barmana and all the respondents who patiently answered to all queries and
cooperated with us and provided all the valuable information that, we needed for our
project study.
4
At last, thanks to and our family members & also to our Teachers for being so
supportive
5
PREFACE
Indian economy is facing a boom in the real estate. This is directly related with
the cement sector. ACC cement being one of the top players in the Indian market and
have major share in the market.
During our project, we carried out a research for ACC cement and tried to find
out Problems related to supply chain management in ACC-Area office Shimla. Also
to find out whether dealers are making use of services provided by ACC Limited this
research is conducted.
6
Executive
Summary
7
PROJECT SUMMARY
BACKGROUND
In 2010 dealers of ACC Limited are facing various problems related to proper
supply of the cement. To find out potential reason, this research is done. Also to find
out whether dealers are making use of services provided by ACC Limited this
research is conducted.
• Sample for study is taken from three Districts under Area Office Shimla i.e.
Shimla, Solan and Sirmour. We decided to cover two Districts i.e. Shimla and
Solan for our study.
8
questionnaire is collected from two districts i.e. Shimla and Solan. It took us
about 4 weeks to collect all the questionnaires from dealers.
CONCLUSION
1. There is problem in regular supply of cement in 2010.
between April-September.
4. The main reason behind the delay in supply of cement is maintenance work
5. Most of Dealers gets the SMS about truck processing their order.
9
RECOMMENDATIONS FOR FURTHER ACTION
1. Many of ACC dealers used to shop other type of building materials along with
cement, in the same shop. This should not be permitted by ACC. Because
selling of these building materials is more profitable than cement, so the
cement selling becomes less important for these dealers. They don’t give
proper attention to the company officials and also to the various schemes of
increasing sales. This in turn brings reduced sales to the company.
3. Introduce gift schemes to customers. Since the ACC is priced high than other
10
COMPANY
PROFILE
11
INTRODUCTION TO ACC LIMITED
ACC (ACC Limited) is India's foremost manufacturer of cement and
concrete. ACC's operations are spread throughout the country with 16 modern cement
factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal
offices. It has a workforce of about 10,000 persons and a countrywide distribution
network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark
for the cement industry in many areas of cement and concrete technology. ACC has a
unique track record of innovative research, product development and specialized
consultancy services. The company's various manufacturing units are backed by a
central technology support services centre - the only one of its kind in the Indian
cement industry.
ACC has rich experience in mining, being the largest user of limestone. As
the largest cement producer in India, it is one of the biggest customers of the domestic
coal industry, of Indian Railways, and a considerable user of the country’s road
transport network services for inward and outward movement of materials and
products.
12
recycling and co-processing.
ACC has taken purposeful steps in knowledge building. We run two institutes that
offer professional technical courses for engineering graduates and diploma holders
which are relevant to manufacturing sectors such as cement. The main beneficiaries
are youth from remote and backward areas of the country.
ACC has made significant contributions to the nation building process by way of
quality products, services and sharing expertise. Its commitment to sustainable
development, its high ethical standards in business dealings and its on-going efforts in
community welfare programmes have won it acclaim as a responsible corporate
citizen. ACC’s brand name is synonymous with cement and enjoys a high level of
equity in the Indian market. It is the only cement company that figures in the list of
Consumer SuperBrands of India.
Top of Form
Bottom of Form
off
The first success came in a move towards cooperation in the country's young cement
13
industry and culminated in the historic merger of ten companies to form a cement
giant. These companies belonged to four prominent business groups - Tatas, Khataus,
Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1,
1936. Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in
January 1936; just months before his dream could be realized.
14
ACC's First Board Meeting in 1936 at The Esplanade
Sir Nowroji B Saklatvala was the first chairman of ACC. The first Board included
distinguished luminaries of the Indian business world of the time - names like J R D
Tata, Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau, Sir Akbar
Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody among others.
A new association was forged between ACC and the Holcim group of Switzerland in
2005. In January 2005, Holcim announced its plans to enter into a long-term strategic
alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements
India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in
ACC. Holcim simultaneously announced its bid to make an open offer to ACC
shareholders, through Holdcem Cement Pvt Limited and ACIL, to acquire a majority
shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Limited
along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of
15
ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently,
ACIL filed declarations indicating their shareholding and declaring itself as a
Promoter of ACC.
Holcim is the world leader in cement as well as being large suppliers of concrete,
aggregates and certain construction-related services. Holcim is also a respected name
in information technology and research and development. The group has its
headquarters in Switzerland with worldwide operations spread across more than 70
countries. Considering the formidable global presence of Holcim and its excellent
reputation, the Board of ACC welcomed this new association.
16
was then Number 1, Queen’s Road, Churchgate. An all-India competition in 1938 had
invited leading architects of the time to send in their designs of which this elegant
design made by Ballardie Thompson & Mathews was chosen as the winning entry.
Work on its construction began in 1939 and was completed during the War period.
The building was occupied by the Royal Air Force and vacated only in 1946.
In 2009, a unique project, has transformed Cement House into an energy efficient
environment-friendly building. Its attractive refurbished façade now houses an
ultramodern office equipped with space-saving modular workstations, access control
and intelligent lighting with motion and light sensors, waste management systems and
water saving devices set amid greenery and a central atrium that further expands the
sense of light and space.
ACC Vision:
TO be one of the most respected companies in India; recognized for
challenging conventions and delivering on our promises
ACC manufactures the various kinds of Portland Cement for general construction and
special applications. In addition to this, ACC offers two value added products namely,
Bulk Cement and Ready Mix Concrete.
18
ACC Cement is the most commonly used cement in all constructions including plain
and reinforced cement concrete, brick and stone masonry, floors and plastering. It is
also used in the finishing of all types of buildings, bridges, culverts, roads, water
retaining structures, etc.
What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on
compressive strength levels.
2. 53 Grade Cement
This is an Ordinary Portland Cement which surpasses the requirements of IS: 12269-
53 Grade. It is produced from high quality clinker ground with high purity gypsum.
ACC 53 Grade OPC provides high strength and durability to structures because of its
optimum particle size distribution, superior crystalline structure and balanced phase
composition.
Blended Cements
1. Fly-ash based Portland Pozzolana Cement
ACC Fly-ash based PPC is made by intergrinding high strength clinker with
specially processed flyash. This imparts a greater degree of fineness to ACC
Fly-ash based PPC cement, improved workability properties while mixing, and
makes concrete more corrosion resistant and impermeable. All of this makes
19
for better long-term strength and improved corrosion resistance and therefore,
greater life for your constructions. ACC Fly-ash based PPC is an eco-friendly
cement
• What are the advantages of using ACC Fly-ash based PPC ?
• Increased serviceability with less deflection of members and micro cracks and
reduced cost of construction and maintenance.
All these factors make for a strong, durable, and longer lasting construction. ACC
PSC benefits the structure, protects the environment by reducing CO2 emissions and
helps conserve energy. Which is why it is often referred to as an eco-friendly cement.
Bulk Cement
Beside all above discussed tyes Acc also provides Ready Mix Concrete. ACC set up
India's first commercial Ready Mix Concrete (RMX) plant in Mumbai in 1994. Today
this business has been reorganized as a separate company called ACC Concrete
Limited which is one of the largest manufacturers of RMX in India with over 40
modern plants in major cities such as Mumbai, Bangalore, Kolkata, Chennai, Delhi.
Hyderabad, Goa, Pune and Ahmedabad.
21
22
PRODUCTS : : CUSTOMER SERVICES
Top of Form
Bottom of Form
off
Going beyond the supply of cement, Acc offer ‘ACC Help services’ to share
knowledge about the process of home building and correct procedures of product
usage.
Acc Regional Offices have Customer Services Cells manned by qualified Civil
Engineers who interact with customers to assess their needs and problems, offer
advice before and after sales including educating users and customers on correct
usage of cement and concrete and good construction practices.
ACC reaches out to its customers, home builders and engineers in the following
ways:
• ACC Help Centres: For personal guidance on the right construction practices.
• ACC Help Vans : Mobile help services. Acc engineers in vans assist users at
their site www.acchelp.in : an interactive website for all users construction
23
related questions.
For more information consumer can SMS ‘ACCHELP’ to 575758 or send Acc
an email addressed to acchelp@acclimited.com
24
Mobile touring vans to visit construction sites to educate users and masons at site and
provide certain specialized services like supervision during slab casting on demand.
www.acchelp.in
This is an interactive website, designed primarily for the individual house builder and
the small consumer. The site provides downloads and online inputs on a host of topics
like estimation, budgeting, selecting architects and easy-to-build home-plans for
different plot sizes.
QUALITY
Top of Form
Bottom of Form
off
25
by qualified personnel.
As a result of this focus on quality, ACC cement specifications exceed those set by
BIS by a wide margin. Today, all ACC cement plants have the ISO 9001 Quality
Systems certification. This demonstrates our tradition of providing reliable and
consistent quality through the application of modern technology, and justifies the
preferences of a nationwide customer base.
26
A
wa
A
rd
wa
srd
re
s
cei
Bottom
& of Form
ve
Acoff
d
col ACC was the first recipient of ASSOCHAM’s first ever National
in
Award
ad for outstanding performance in promoting rural and agricultural development
20
activities in 1976. Decades later, PHD Chamber of Commerce and Industry selected
es
08
09
ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the
In
years, there have been many awards and felicitations for achievements in Rural and
A
di
community development, Safety, Health, Tree plantation, afforestation, Clean mining,
Fi
C
wa
ra
Environment
na
N awareness and protection.
rd
Pr
nc
B
s
iy
ial
C-
re
ad
Ex
T
cei
ar
pr
V
Awards received in 2007 & 2006
ve
sh
ess
18
d off
ini
-
's Economic performance
in
Vr
E • ISO 9001: 2000 Quality Management System for Marketing and
In
20
ik
m
di Distribution of Cement Activities certification awarded to ACC’s Mumbai
10
sh
aer Regional Marketing Office (now SU-Mumbai) in January 2006 by TUV, an
a
ge
B ISO Audit agency. This is the first marketing office in ACC to receive such
mi 9th
nt Gre certification and also the first marketing office in the Indian cement industry.
us
tr
Veent
in
a ech • Consumer Superbrand 2006-07: ACC awarded Superbrand status - the only
nt
es
A Saf company in the cement industry - by Superbrands India Council.
sur
w ety
es Gol
Le • IS/ISO 9001: 2000 Quality Management System Certification received by
ar
In d ACC Tikaria from the Bureau of Indian Standards in January 2006
ad
d Aw
di
er
--- ard
• IS/ISO 9001: 2000 Quality Management System Certification received by
sa in
by
(E cemACC Damodhar from the Bureau of Indian Standards in January 2006
A
Th ent
VI
w
• IMC Ramkrishna Bajaj National Quality Awards - ACC Gagal awarded the
e sect
) 27
ar or
Mi
dGrto
nisAC
ee
in
try C
n
the
of Jam
Buul
cat
vir
on
me
nt
an
d MILESTONES
Fo
res
1936 Incorporation of The Associated Cement Companies Limited on August
ts
1, 1936.
for
"e
1936 First Board Meeting of The Associated Cement Companies Limited held
xtr
at Esplanade House, Mumbai on November 10, 1936.
ao
rdi
1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement
na
Company, the formation of ACC is complete on October 23, 1937.
ry
wo
1944 ACC’s first community development venture near Bombay
rk
"
1947 India’s first entirely indigenous cement plant established at Chaibasa in
car
Bihar
rie
d1952 Village Welfare Scheme launched
ou
t1955 Sindri cement works used the waste product calcium carbonate sludge
in from fertilizer factory at Sindri.
the
are
1956 Bulk Cement Depot established at Okhla, Delhi
a
1957
of Technical training institute established at Kymore, Madhya Pradesh.
aff
1957
or Katni Refractories
est
1961
ati Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture
. 28
FI
C
CI
w
ar
d
---
for
in
1961
no Manufacture of Accocid Cement, which resists the corrosive action of
vat acids and chemicals.
ive
1961
me Oilwell Cement manufactured at ACC Shahabad Cement Works in
as Karnataka for cementation of oilwells upto a depth of 6,000 feet.
ur
1961
es Manufacture of Hydrophobic (waterproof) cement at ACC Khalari
co
1962 Manufacture of Accoproof, a waterproofing additive.
ntr
ol
1965 ACC’s Central Research Station (CRS) established at Thane
of
po
1965 Manufacture of Portland Pozzolana Cement.
llu
tio
1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low
n, Density Alumina Castables and High Alumina Refractory Cement.
wa
ste
1968 Advent of computers in ACC for data processing and designing
ma management information and control systems.
na
1968
ge ACC supplied and commissioned one-million-tonne iron ore pelletising
me plant ordered by TISCO
nt
1971
& Manufacture of Whytheat Castables A, K, C and Cal-Al-75
co
1973
ns Take-over of The Cement Marketing Company of India (CMI)
er
1977 ACC receives ASSOCHAM first national award for the year 1976
vat
io 29
n
of
instituted for outstanding performance in promoting rural and agricultural
development activities.
1978 Introduction of the energy efficient precalcinator technology for the first
time in India. Full scale commercial production based on MFC
technology at Wadi in 1979.
1979 ACC wins international contract for operation and management of a new
one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.
1987 ACC develops a new binder for use at sub-zero temperatures, which is
successfully used in the Indian expedition to Antarctica.
1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar
Pradesh.
30
1999 Commissioning of captive power plants at the Jamul and Kymore plants
in Madhya Pradesh.
1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings
Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)
2000 Tata Group sells their remaining stake in ACC to the GACL group, who
with 14.45% now emerge as the single largest shareholder of ACC.
31
outstanding performance in Safety Management System.
2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar
Certificate of Merit – 2004 from Council For Fair Business Practices.
2005 Holcim group of Switzerland enters strategic alliance with Ambuja Group
by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL)
which at the time held 13.8 % of the total equity shares in ACC. Holcim
simultaneously makes an open offer to ACC shareholders, through
Holdcem Cement Pvt. Limited and ACIL, to acquire a majority
shareholding in ACC. Pursuant to the open offer, ACIL’s shareholding in
ACC increases to 34.69 % of the Equity share capital of ACC.
2006 Change of name to ACC Limited with effect from September 1, 2006
from The Associated Cement Companies Limited.
2006 ACC receives Good Corporate Citizen Award 2005-06 from Bombay
32
Chamber of Commerce and Industry
2006 New corporate brand identity and logo adopted from October 15, 2006
2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients
at Wadi in Karnataka– the first ever such project by a private sector
company in India.
2007 ACC partners with Christian Medical College for treatment of HIV/AIDS
in Tamil Nadu
2008 Ready mixed concrete business hived off to a new subsidiary called ACC
Concrete Limited.
2008 ACC wins CNBC-TV18 India Business Leader Award in the category
India Corporate Citizen of the year 2008
2009 ACC received the Jamanalal Bajaj "Uchit Vyavahar Puraskar" of Council
for Fair Business Practices
2009 ACC is allotted coal blocks in Madhya Pradesh and West Bengal.
33
2009 ACC's new Grinding plant of capacity 1.60 million tonnes inaugurated at
Thondebhavi in Karnataka.
2010 ACC acquires 100 percent of the financial equity of Encore Cements &
Additives Private Limited which is a slag grinding plant in
Vishakhapatnam in coastal Andhra Pradesh. This company became a
wholly-owned subsidiary of ACC in January 2010.
The Indian Cement industry is the second largest cement producer in the world, with
an installed capacity of 144 million tonnes. The industry has undergone rapid
technological up gradation and vibrant growth during the last two decades, and some
of the plants can be compared in every respect with the best operating plants in the
world. The industry is highly energy intensive and the energy bill in some of the
plants is as high as 60% of cement manufacturing cost. Although the newer plants are
34
equipped with the latest state-of-the-art equipment, there exists substantial scope for
reduction in energy consumption in many of the older plants adopting various
energy conservation measures. The Indian cement industry is a mixture of mini and
large capacity cement plants, ranging in unit capacity per kiln as low as 10 tpd to as
high as 7500 tpd. Majority of the production of cement in the country (94% ) is by
large plants, which are defined as plants having capacity of more than 600 tpd. At
present there are 124 large rotary kiln plants in the country. The Ordinary Portland
cement (OPC) enjoys the major share (56%) of the total cement production in India
followed by Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A
positive trend towards the increased use of blended cement can be seen with the
share of blended cement increasing to 43%. There is regional imbalance in cement
production in India due to the limitations posed by raw material and fuel sources.
Most of the cements plants in India are located in proximity to the raw material
sources, exploiting the natural resources fully. The southern region is the most
cement rich region while other regions have almost same cement production capacity.
The Indian cement industry is about 90 years old and its main sources of energy are
thermal and electrical energy. The thermal energy is generally obtained from
coal, and the electrical energy obtained either from grid or captive power plants of the
individual manufacturing units.
Indian cement industry is the second largest in the world with an installed capacity of
135 MTPA. It accounts for nearly 6% of the world production.
35
There are 124 large plants and around 365 mini plants. The industry presents a
mixed picture with many new plants that employ state-of-the-art dry process
technology and a few old wet process plants having wet process kilns.
Production from large plants (with capacity above 1 MTPA) account for 85% of
the total production.
The cement industry has achieved significant progress in terms of reducing the
overall energy intensity.
Dry process plants that the weighted average thermal energy consumption was 734
kCal/kg clinkers, and weighted average electrical energy consumption was 89
kWh/tonne of cement. The best energy consumption are 692 kCal/kg. clinker and 66
kWh/ton of cement.
At the outset it may be recognized that cement is one of the core industries defined
under the Industrial Policy Resolutions adopted in the early stage of planning in India.
Its growth implications essentially have to be seen in the larger context of national
economy rather than in a regional or sub-regional context. There are three important
features characterizing the industry. First, the basic raw material for the industry is
limestone, which like all minerals is fixed in quantity. Therefore, the present rate of
its use should consider demand-supply situations in the long run. Second, and more
important is that the industry may potentially have adverse environmental impact
through three different routes: (a) converting culturable/non-culturable land from
their present uses into quarries and thus, disturbing the vegetation and ecosystem; (b)
removing the limestone from the soil and thereby affecting the moisture profile as
well as the structure of aquifers; and (c) creating air pollution which could be
hazardous for human as well as animal health and for crop-yields. The third important
36
feature of the industry is that it generates limited direct linkages in the regional
economy where the industry is located though, its indirect linkages are likely to be
quite significant. The indirect linkages mainly take place in the form of (a)
infrastructural development and provision of basic amenities (i.e. roads, ports,
schools, hospitals etc.
(b) development of irrigation (i.e. dams, canals etc.) and
(c) housing-construction - all having substantial income employment linkages at the
level of national economy. It is therefore important to examine the industry's growth
profile by focusing on the important questions such as:
What should be the optimum rate of exploration / utilization of Limestone
What is the nature and magnitude of the environmental impact at the projected rate
of growth?
How much would be the direct employment-income linkages within the region's
economy livelihood of people.
37
SWOT ANALYSIS OF ACC CEMENT
STRENGTHS
· · It is having a good image and brand loyalty among consumers.
· · Service is good
· · Perceived to be of very superior quality cement when compared to others
· · They have same price prevailing for wholesale at dealers/stockiest retailers end.
WEAKNESS
· · The competitors are doing much promotional activity rather than ACC Limited
that’s why it facing more problems in selling of product in the market.
· · Lack of awareness program for consumers.
OPPORTUNITY
· · People are opting for more stable structures and intensive use of cement is
taking place, even government is spending heavily on infrastructure projects.
Thus, this is the right time to fully tap these markets.
38
· · Foreign direct investment in infrastructure sector going to increase in coming
years, which will increase the demand of cement.
· · Roads are undergoing through the transformation process through which the
traditional method of road building will be replaced by modern concrete roads.
THREATS
· · Large number of players in cement industry makes it more competitive for ACC
to carefully price its product and at the same time satisfy its dealers and
customers.
· · Players such as Jaypee Cement, Prism Cement, and Birla Samrat are eating up
considerable market share.
· · Due to India’s exponential growth many new international cement companies
are expected in coming years which will bring a tide of change and can start
price war.
· · The emergence of small players in this market may increase the competition and
start the malpractices, and heavy discounts to retailers.They can also influence
many retailers by giving better profit margin, and other benefits.
39
RESEARCH
METHODOLOGY
40
OBJECTIVES
• To Study the supply chain management of ACC Limited in Area Office
Shimla
• To study the problems faced by dealers
• To find out the dealer’s opinion about certain aspect of ACC Cement such as
supply, demand etc.
RESEARCH DESIGN
1. Hypothesis:
• Null Hypothesis: Supply chain of ACC in Area Office Shimla is facing
problems
• Alternative Hypothesis: There is no problem in supply chain of ACC in
Area Office Shimla
2. Sample Size:
For the purpose of the study, samples are selected randomly from
Shimla and Solan District.
The following table summarized the sample size in terms of numbers of surveyed
Dealers in two districts
• No. Of Dealers Surveyed in Shimla District = 18
41
• No. Of Dealers Surveyed in Solan District = 09
• Total No. Of Dealers Surveyed = 27
Beside this
• Person Interviewed = Area In charge and Logistics In charge of Acc Bilaspur,
Truck Union Leader- Bilaspur
42
Overall, we have collected 27 questionnaires from Dealers group.
2. Secondary Data:
We have also collected the secondary data by means of the documentary
sources such as:
• Company records
• Registers files booklets
• Magazine
• Journals
• Company Website
The study has been conducted to study the supply chain of ACC
Limited and to find out problems of dealers of ACC.
Also to analyze the survey data, and thereby giving the best possible suggestions
as solutions to the problems faced by the dealers and problems in supply chain of
ACC.
43
NEED FOR THE STUDY
Need for study was felt due to the fact that dealers were facing the problems
regarding the regular supply of cement. Most of them were not able to get
delivery of cement in time. The research work also acted as a source to find out
the reason for delay in supply of cement.
• The major problem of the survey was that most of the respondents being very
loyal to ACC didn’t give exact answers. Like they didn’t talk much about what
problems they are facing
• Some of the respondents may have told their average monthly sale more than
the actual. Because all of them think that the monthly sale attached with the
market image of their shop
• Few dealers refused to answer some question at all. So the actual figures can
be somewhat different from the one that we have found out
44
• Also the study is applicable for short term only because problems of dealers
used to vary with time depending upon supply of cement and other issues
• Also within a restricted time of 6 weeks we cannot cover many dealers. So the
sample size for the study is limited.
45
Introduction
To
Supply Chain
Management
46
SUPPLY CHAIN MANAGEMENT
Supply chain management (SCM) is the management of a network of
interconnected businesses involved in the ultimate provision of product and service
packages required by end customers (Harland, 1996). Supply Chain Management
spans all movement and storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption (supply chain).
A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers. Supply chains exist in both service and manufacturing organizations,
although the complexity of the chain may vary greatly from industry to industry and
firm to firm.
Another definition is provided by the APICS Dictionary when it defines SCM as the
"design, planning, execution, control, and monitoring of supply chain activities with
the objective of creating net value, building a competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with demand, and measuring performance
globally."
47
LOGISTICS
Logistics is the management of the flow of goods, information and other resources
between the point of origin and the point of consumption in order to meet the
requirements of consumers (frequently, and originally, military organizations).
Logistics involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging, and occasionally security. Logistics
is a channel of the supply chain which adds the value of time and place utility. Today
the complexity of production logistics can be modelled, analyzed, visualized and
optimized by plant simulation software.
Production logistics
The term production logistics is used to describe logistic processes within an industry.
The purpose of production logistics is to ensure that each machine and workstation is
being fed with the right product in the right quantity and quality at the right time. The
concern is not the transportation itself, but to streamline and control the flow through
value-adding processes and eliminate non–value-adding ones. Production logistics
can be applied to existing as well as new plants. Manufacturing in an existing plant is
48
a constantly changing process. Machines are exchanged and new ones added, which
gives the opportunity to improve the production logistics system accordingly.
Production logistics provides the means to achieve customer response and capital
efficiency.
Production logistics is becoming more important with decreasing batch sizes. In many
industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing
even a single customer's demand to be fulfilled efficiently. Track and tracing, which
is an essential part of production logistics—due to product safety and product
reliability issues—is also gaining importance, especially in the automotive and
medical industries.
You face enormous pressure to reduce costs while increasing innovation and
improving customer service and responsiveness. SAP Supply Chain Management
(SAP SCM) enables collaboration, planning, execution, and coordination of the entire
supply network, empowering you to adapt your supply chain processes to an ever-
changing competitive environment.
SAP SCM is part of the SAP Business Suite, which gives organizations the unique
ability to perform their essential business processes with modular software that is
designed to work with other SAP and non-SAP software. Organizations and
departments in all sectors can deploy SAP Business Suite software to address specific
business challenges on their own timelines and without costly upgrades.
SAP SCM can help transform a linear, sequential supply chain into a responsive
supply network – in which communities of customer-centric, demand-driven
49
companies share knowledge, intelligently adapt to changing market conditions, and
proactively respond to shorter, less predictable life cycles. SAP SCM provides broad
functionality for enabling responsive supply networks and integrates seamlessly with
both SAP and non-SAP software.
The application:
With SAP SCM, you can model your existing supply chain; set goals; and forecast,
optimize, and schedule time, materials, and other resources with these planning
activities:
• Distribution planning
50
SAP SCM enables you to:
• Reduce inventory levels and increased inventory turns across the network
51
full truckload (FTL) rates are more economical on a cost per pallet basis than
less than truckload (LTL) shipments. If, however, a full truckload of a product
is ordered to reduce transportation costs, there will be an increase in inventory
holding costs which may increase total logistics costs. It is therefore
imperative to take a systems approach when planning logistical activities.
These trade-offs are key to developing the most efficient and effective
Logistics and SCM strategy.
START
DEALER
(SEND ORDER TO AREA
LESS CREDIT OFFICE) SHIMLA)
ORDER
AREA OFFICE
SHIMLA
52
CREDIT CHECK
CREDIT
OK
NO
Yes
ORDER PLACED TO
PLANT GAGAL
(BILASPUR) THROUGH
SAP
ORDER ACCEPTED BY
LOGISTIC SECTION AT
PLANT
53
ORDER FORWARD TO
CEMENT DISPATCH
SECTION (CDS)
ORDER FORWARD TO
TRANSPORTATION
54
A
56
CYCLIC PROCESS
57
SUPPLY CHAIN PROCESS OF ACC SHIMLA
1. Dealer: - Dealer place order to the ACC-Area Office Shimla according to his/her
demand. Dealer can also check their credit before placing the order. So dealer place
order according to the credit
2. At Area office Shimla: - Area Office Shimla accepts the order from the dealers
and checks their credit. If credit is OK than order is placed to the plant at Gaggal
(Bilaspur) using SAP. If credit is not OK than order is not placed to plant and Area
office contacts the dealers and tell them about their credit.
3. At plant Gagal (Bilaspur):- At plant Gagal the orders accepted by the logistics
section and forward it to the Cement Dispatch Section (CDS). CDS forward it to the
transportation.
4. Transportation:- Union leader in the transportation get the order and call the truck
drivers and send them to the plant(ACC).This step is called as PUKAR (a Hindi
word).
5. Truck drivers get the gate pass and list of order at the plant (ACC) (Truck load and
out)
6. When the truck leaves the plant dealer get the message about dispatching of the
truck from the plant.
7. After that bills are made according to the dealers. These bills include cost and all
taxes. And then print the bills and send them to the dealers.
8. Dealers get the material, check the order and unload the truck.
58
Data
Collected
59
Q1. How long you are in dealership with
ACC?
• Less than 1
year
• 1-2 years
• 3-5 years
• More than 5
years
More than 5
1 Ratan lal & son Years
Less than 1
2 Mittal Traders year
More than 5
3 Roop Hard Hardware Years
Shri mahun Nag More than 5
4 Brothers Years
More than 5
5 Mr. Mukesh Sharma Years
6 Sweti Associate 2-3 Years
More than 5
7 Ved Kumar Khuller Years
More than 5
8 Bindra Store Years
More than 5
9 Jain Traders Years
More than 5
10 P.K. Construction co. Years
More than 5
11 Om coal cos. Years
12 Ravi Sethi Kandhaghat 2-3 Years
13 ENN Emmess Traders 4-5 Years
14 Joshi Brothers 4-5 Years
More than 5
15 Jai Bhawani Traders Years
60
16 Sandeep Brothers 2-3 Years
More than 5
17 Highway Hardware Years
18 Palak Traders 2-3 Years
More than 5
19 Shivalik Agencies Years
More than 5
20 Jai Durga Traders Years
More than 5
21 Universal Traders Years
More than 5
22 Sunil Kumar Sood Years
More than 5
23 Jupiter India Sales Years
More than 5
24 Harish Brothers Years
Diwana Mal & More than 5
25 associates Years
More than 5
26 R.P. Sama Years
More than 5
27 Seth Cement Store Years
61
8 Bindra Store 200
9 Jain Traders 120
10 P.K. Construction co. 60
11 Mr Luckey 60
12 Ravi Sethi Kandhaghat 70
13 ENN Emmess Traders 300
14 Joshi Brothers 200
15 Jai Bhawani Traders 50
16 Sandeep Brothers 200
17 Highway Hardware 100
18 Palak Traders 160
19 Shivalik Agencies 500
20 Jai Durga Traders 200
21 Universal Traders 700
22 Sunil Kumar Sood 200
23 Jupiter India Sales 120
24 Harish Brothers 350
Diwana Mal &
25 associates 100
26 R.P. Sama 150
27 Seth Cement Store 120
62
Q3. In which season demand
is more?
o January – March
o April – June
o July – September
o October -
December
64
7 Ved Kumar Khuller No
8 Bindra Store Yes
9 Jain Traders Yes
10 P.K. Construction co. Yes
11 Mr Luckey Yes
12 Ravi Sethi Kandhaghat Yes
13 ENN Emmess Traders Yes
14 Joshi Brothers Yes
15 Jai Bhawani Traders No
16 Sandeep Brothers Yes
17 Highway Hardware Yes
18 Palak Traders Yes
19 Shivalik Agencies Yes
20 Jai Durga Traders No
21 Universal Traders Yes
22 Sunil Kumar Sood Yes
23 Jupiter India Sales No
24 Harish Brothers Yes
Diwana Mal &
25 associates Yes
26 R.P. Sama Yes
27 Seth Cement Store Yes
65
Q5. Presently, how much time does it take you to get the
material?
• 2 day
• 3-4 days
• 5-6 days
• More than 6 days
66
16 Sandeep Brothers 5-6 Days
More Than 6
17 Highway Hardware Days
More Than 6
18 Palak Traders Days
More Than 6
19 Shivalik Agencies Days
20 Jai Durga Traders 3-4 Days
More Than 6
21 Universal Traders Days
More Than 6
22 Sunil Kumar Sood Days
23 Jupiter India Sales 3-4 Days
More Than 6
24 Harish Brothers Days
Diwana Mal & More Than 6
25 associates Days
More Than 6
26 R.P. Sama Days
More Than 6
27 Seth Cement Store Days
Q6. Before 2010 what was the lead time i.e. time interval to
receive orders?
• 2 day
• 3-4 days
• 5-6 days
• More than 6 days
67
1 Ratan lal & son 5-6 Days
2 Mittal Traders 2 Days
3 Roop Hard Hardware 3-4 Days
Shri mahun Nag
4 Brothers 2 Days
5 Mr. Mukesh Sharma 2 Days
6 Sweti Associate 2 Days
7 Ved Kumar Khuller 5-6 Days
8 Bindra Store 3-4 Days
9 Jain Traders 2 Days
10 P.K. Construction co. 3-4 Days
11 Mr Luckey 5-6 Days
12 Ravi Sethi Kandhaghat 2 Days
13 ENN Emmess Traders 2 Days
14 Joshi Brothers 3-4 Days
15 Jai Bhawani Traders 5-6 Days
16 Sandeep Brothers 3-4 Days
17 Highway Hardware 3-4 Days
18 Palak Traders 3-4 Days
19 Shivalik Agencies 2 Days
20 Jai Durga Traders 2 Days
21 Universal Traders 3-4 Days
22 Sunil Kumar Sood 5-6 Days
23 Jupiter India Sales 3-4 Days
24 Harish Brothers 2 Days
Diwana Mal &
25 associates 3-4 Days
68
26 R.P. Sama 3-4 Days
27 Seth Cement Store 3-4 Days
70
Less than 1
1 Ratan lal & son hr
2 Mittal Traders 1-2 hr
Less than 1
3 Roop Hard Hardware hr
Shri mahun Nag
4 Brothers 1-2 hr
Less than 1
5 Mr. Mukesh Sharma hr
6 Sweti Associate 1-2 hr
7 Ved Kumar Khuller 3-4 hr
8 Bindra Store 1-2 hr
9 Jain Traders 3-4 hr
Less than 1
10 P.K. Construction co. hr
11 Mr Luckey 1-2 hr
Less than 1
12 Ravi Sethi Kandhaghat hr
Less than 1
13 ENN Emmess Traders hr
Less than 1
14 Joshi Brothers hr
Less than 1
15 Jai Bhawani Traders hr
Less than 1
16 Sandeep Brothers hr
17 Highway Hardware 1-2 hr
18 Palak Traders 3-4 hr
19 Shivalik Agencies 3-4 hr
20 Jai Durga Traders 1-2 hr
21 Universal Traders 3-4 hr
71
22 Sunil Kumar Sood 1-2 hr
Less than 1
23 Jupiter India Sales hr
24 Harish Brothers 3-4 hr
Diwana Mal &
25 associates 1-2 hr
Less than 1
26 R.P. Sama hr
Less than 1
27 Seth Cement Store hr
72
8 Bindra Store Good
9 Jain Traders Average
10 P.K. Construction co. Good
11 Mr Luckey Good
12 Ravi Sethi Kandhaghat Good
13 ENN Emmess Traders Good
14 Joshi Brothers Good
15 Jai Bhawani Traders Good
Sandeep Brothers
16 Kumarhatti Good
17 Highway Hardware Good
18 Palak Traders Good
19 Shivalik Agencies Poor
20 Jai Durga Traders Poor
21 Universal Traders Average
22 Sunil Kumar Sood Average
23 Jupiter India Sales Good
24 Harish Brothers Good
Diwana Mal &
25 associates Average
26 R.P. Sama Good
27 Seth Cement Store Good
7. Some of them are not satisfied with more than one dealer in
the same location
74
Finding and
Analysis
75
Q1. How long you are in dealership with ACC?
The graph clearly shows that the most of dealers are more than 5 year
in dealership with ACC (74.07%). Even most of them are in dealership with ACC for
more than 20 year.
76
The main reason behind this is - ACC had set up its plant in Himachal
Pradesh 25 year back when there were no other cement manufacturers in the market.
Also most of the dealers are well satisfied with the services provided to them by ACC
Limited. The service includes different type of incentive schemes meant for the
dealers Like Lakshya etc and regular visits by the company officials.
77
Q2. What is your monthly average tonnage (in MT)?
_______________
78
Q3. In which season demand is more?
January-March 3.70% 1
April-June 40.74% 11
July-September 51.85% 14
October-December 3.70% 1
The graph clearly shows that demand for the cement is more in July-
September (51.85%) followed by April-June (40.74%). Also in other season demand
of cement is very less (3.70% in January-March and October-December).
79
This shows that the demand of cement shows seasonal fluctuation
leading to more sale of cement between April-September.
80
Q4. Is logistic a problem with ACC?
Yes
No
Yes 77.78% 21
No 22.22% 6
81
The reason why most of dealers reported problem in logistics is
because, in 2010 they are facing problems related to supply of cement. They are not
getting the required supply of cement to meet the market demand. It takes them 4-12
days to get the delivery of the cement in 2010.
82
Q5. Presently, how much time does it take you to get the material?
The above graph shows that for most of dealers (59.26%) it takes More
than 6 days to get supply of cement in 2010.
83
The main reason behind the delay in supply of cement is maintenance
work which is going on in Gaggal Plant of ACC Limited. Also sometime sudden
increase in demand takes time to cope up.
84
Q6. Before 2010 what was the lead time i.e. time interval to receive orders?
2 Days 37.04% 10
3-4 Days 44.44% 12
5-6 Days 18.52% 5
85
The above graph clearly shows that before 2010 most of dealers were
getting supply of cement within 3-4 days (44.44%). At most they were getting the
supply of cement within 6 days (18.52%). Even 37.04% of dealers were getting the
supply of cement within 2 days only.
It shows that before 2010 supply of cement was regular and on time.
86
Q7. Do you get message about the truck processing your order?
No 25.93% 7
Yes 66.67% 18
Frequent 7.41% 2
The graph shows that the 66.67% of dealers receives messages about the
trucks processing their orders. The 25.93% of the dealers said that they are not getting
any messages about trucks processing their orders. Remaining 7.41% of dealers said
that they receive messages frequently.
87
The reason why dealers are not receiving any messages or frequently
able to receive SMS can be that they are using other mobile number temporarily or
permanently and have not informed about it to ACC Limited.
88
Q8. How much time does it take to unload the truck (in hrs.)?
The graph clearly shows that it takes less than one hour to unload the
truck for most of the dealers (44.44%). At most they are able to unload the truck in 4
hours.
89
90
Q9. How is the behaviour of truck drivers with you?
Good 62.96% 17
Average 29.63% 8
Poor 7.41% 2
The above graph shows that most of the truck drivers behave properly with the
dealers.
91
Conclusion
And
Recommendations
92
CONCLUSION
RECOMENDATIONS
Based upon the time spent by me in the market, useful suggestions of the dealers and
the findings from the survey, following recommendations can be suggested for
increasing sales and effectiveness of ACC
• Many of the ACC dealers used to shop other type of building materials along
with cement, in the same shop. This should not be permitted by ACC. Because
selling of these building materials is more profitable than cement, so the
cement selling becomes less important for these dealers. They don’t give
93
proper attention to the company officials and also to the various schemes of
increasing sales. This in turn brings reduced sales to the company.
• To Supply adequate cement to the dealers on time. The dealer’s complaint was
that they receive less supply cement according to their demand, if they get
ample amount than the sale of the ACC cement will increase many fold.
• Introduce gift schemes to customers. Since the ACC is priced high than other
many brands so it should focus on this scheme. So introducing gift schemes to
customers will inspire them to buy the product.
94
BIBLIOGRAPHY
Online Sources:
• www.acclimited.com
• www.google.com
• www.wikipedia.com
• www.about.com
Books Refered:
By: C.R.Kothari
• Marketing Management
95
ANNEXTURE
96
QUESTIONNAIRE
Dealer Name:
Location:
Date:
○ January – March
○ April – June
○ July – September
○ October - December
• Yes
• No
97
________________________
Q5. Presently, how much time does it take you to get the material?
• 2 day
• 3-4 days
• 5-6 days
• More than 6 days
Q6. In past what was the lead time i.e. time interval to receive orders
• 2 day
• 3-4 days
• 5-6 days
• More than 6 days
Q7. Do you get message about the truck processing your order?
• Yes
• No
• Frequently
If yes, how much is the time between message receiving and order getting?
Q8. How much time does it take to unload the truck (in hrs.)?
98
• Less than 1 hour
• 1-2 hours
• 3-4 hours
• More than 4 hours
• Good
• Average
• Poor
99
ACC Cement “Project Report on Analysis of Supply Chain
Management” Synopsis
Objectives:
Findings:
1. Most of dealers are well satisfied with the services provided to them by ACC
Limited.
100
3. In 2010 dealers are facing problems related to supply of cement. They are not
getting required supply of cement to meet market demand. It takes them 4-12
days to get delivery of cement in 2010.
4. The main reason behind delay in supply of cement is maintenance work which
is going on in Gaggal Plant of ACC Limited. Also sometime sudden increase
in demand takes time to cope up.
6. The reason why dealers are not receiving any messages or frequently able to
receive SMS can be that they are using other mobile number temporarily or
permanently and have not informed about it to ACC Limited.
Suggestions:
1. Many of ACC dealers used to shop other type of building materials along with
cement, in the same shop. This should not be permitted by ACC. Because
selling of these building materials is more profitable than cement, so the
cement selling becomes less important for these dealers. They don’t give
proper attention to the company officials and also to the various schemes of
increasing sales. This in turn brings reduced sales to the company.
101
2. To Supply adequate cement to dealers on time. The dealer’s complaint was
that they receive less supply cement according to their demand, if they get
ample amount than the sale of ACC cement will increase many fold.
3. Introduce gift schemes to customers. Since the ACC is priced high than other
102