OPTIMISATION OF SUPPLIER LOGISTICS

ABSTRACT
This study aims to centrally control or link the
production, shipment, and distribution of a product.
Supply chain logistics executives must know how to
choose the most advantageous mode of
transportation, how to design and set up a
warehousing Facility, how to control and manage
inventory and assets, and how to set up an efficient
Figure 2 Global logistics cost as % of sales
logistics network while minimizing cost and
delivering top-notch customer service. This report
will provide a detailed study of a supplier logistics
and ways to optimise the supply Chain logistics.
KEY FACTORS OF SUPPLY CHAIN
SUPPLY CHAIN LOGISTICS
LOGISTICS
Supply chain logistics is a network of transportation,
warehousing, and inventory. Supply chain logistics
 Supply chain management
executives must know how to choose the most
 Supplier
advantageous mode of transportation, how to design
and set up a warehousing facility, how to control and  In-plant logistics
manage inventory and assets, and how to set up an  In-bound logistics
efficient logistics network while minimizing cost and ROLE OF SUPPLIER IN SUPPLY CHAIN
delivering top-notch customer service. LOGISTICS
Supplier plays a major role in the supply chain
logistics. They have to make the product in order to
match their customer’s expectations and also at the
correct time matching the production schedule.
Supply managers have to follow the suppliers with
frequent updating of the data that is required and also
make them understand the quality expected out of
them without compromising the date of delivery.
Delay in delivery date of a part may cause line
stoppage which will affect the production schedule.
Packaging of parts is very important to prevent the
damage of parts until it reaches the customer end.

ROLE OF IN-BOUND LOGISTICS

Based on the production schedule supply managers
will make sure that the required commodity is ready
at the required time and at the required quality. Now
Figure 1 Indian logistics market
the In-Bound logistics comes into play, it has to make
sure that the transportation for the commodity is
ready at the required time. They have to plan their
transportation based on the requirement and also
based on the priority and has to plan for the risk
management .They also have to make sure that the
products are transported without any damage to the
product and also without compromising the time of
delivery.
ROLE OF IN-PLANT LOGISTICS
In plant logistics has to make sure that the parts
delivered from the suppliers are handled safely and
stored for future use. Material handling plays a key
role in in-plant logistics. They have to allocate the
space required to store the parts .They have to utilize
their space and man power efficiently to make sure
that the loading and unloading are done in the best
optimized way . Delay in Time taken for loading and
unloading also affects the production schedule.
PROCESS FLOW OF SUPPLY CHAIN
LOGISTICS
• preparation of
SUPPLIER parts and
END documents
physical characteristics about the shipment so the
customer can be prepared to accept delivery.ASN
should be generated by the supplier before shipping
the products. Invoice should be made, from which
ASN is generated. The supplier should handover the
invoice along with the ASN number.
MATERIAL GATE PROCESS
Vehicle reaches the DICV material gate from the
supplier end. At the material gate, vehicle is allocated
a yard. Yard consists of 4 bays and 56slots. Then the
documents are received from the driver and they feed
ASN (Advance shipping notice) number in the
system and see whether the fetched details match
with invoice details. Any mismatch will lead to
holding of vehicle. Once the details match Goods
Verification Number (GVN) will be generated for
the parts and will be sent for storage. Document
verification process will take place on the First In
First Out basis. In case of delivery of critical parts,
which will cause line stoppage, priority is given for
the vehicle with critical parts and is sent without
following the first in first out basis.

• Yard allocation,
MATERIA documents
L GATE verification
• Material unloading
,storage and
DICV END loading

Figure 3 Process flow supply chain logistics

WORKING
Supply chain logistics decides the pickup plan based
on the information provided by the supply manager
based on the production schedule. Working process
involved in delivering a part is as follows,

SUPPLIER END
Supply has to generate an Advanced Shipping Notice
(ASN). Advanced shipping notice (ASN) is a
document that provides detailed information about a
pending delivery. The purpose of an ASN is to notify Figure 4 Parking slot
the customer when shipping occurs and provide
INPLANT LOGISTICS MATERIAL GATE PROCESS
The vehicle reaches the In-plant logistics after To allocate the yard for the vehicles based on the
the material gate process. The quantity of parts are availability. To verify the documents that are
physically checked and if the GVN matches with the received from the supplier. The ASN number should
physical stock GRN(Goods Receipt Number) is match the details in the Invoice copy. Once the
generated by the In-plant logistics team and which is documents are verified, Goods verification number
then sent to the Finance team for the payment (GRN) will be generated and the announcement will
process. The goods are unloaded at the dock and then made for the vehicle to enter andthe vehicle will the
the unloaded Goods are stored based on the storage reach the storage area.
allocation. Material handling is very important in this
process. Material handling is managed by the
(Material Handling Engineering) MHE team
which ensures the safety of the materials and also
responsible for trolley selection and allocation. The
goods stored are then feed to the line based on the
requirement.

SUPPLIERINTRODUCTION
The leading manufacturer of seating systems in
India. It commenced its operations in the year 1988.It Figure 6 Material Gate Process
is part of TVS group. This specializes in manufacture
& supply of safe, ergonomic and reliable driver seats
and bus passenger seats. seats are used in the INPLANT LOGISTICS
automotive segments of The vehicle after the material gate reaches the in-
plant logistics area, where the goods verification
 Commercial vehicles
number data is physically checked and goods receipt
 Tractors
number will be generated and be forwarded to the
 Off-road vehicles finance team. The materials are unloaded and the
 Buses empty trolleys are again loaded and sent to the
PRESENT INBOUND LOGISTICS OF THE supplier end.
LEAD SEAT MANUFACTURING COMPANY
SUPPLIER END
To produce parts based on the production schedule.
The part produced must satisfy the design
requirements of the customer and the quality
expected out of them. They have to raise an Advance
shipping notice (ASN) before delivering the products
which ensures the date of delivery. The details in the Figure 7ProcesssFlow(In-Plant logistics)
ASN should be correct and should match the details
that were mentioned in the ASN.

Figure 5 process flow(Supplier End)

PRESENT TIMING does 8 trips a day whereas Bus plant does only 2
trips. So it is difficult to manage the slots for bus and
truck plant. One vehicle has to weight until the other
vehicle is loaded.

Trolleys are used to carry the seats from one end to

another for handling and safety purpose. Trolley also
affect the delay in loading and unloading. The
supplier will have 12 empty trolley. As the vehicle
started its transit the supplier has to bring the trolley
one by one. Because of space constraint it is difficult
to keep the trolleys loaded Before arrival. So the
vehicle has to wait until the loaded trolley is ready.

Table 1Present timing of seating company

REASONS FOR DELAY IN PRESENT

LOGISTICS
TRANSIT
The first trip starts around (9.00-9.30) am, due to
high traffic during the peak hours it takes more time
than the scheduled. The Supplier end production Figure 8 supplier End Loading
time starts at 7.00 am, achieving that time is
difficult because of unavailability of slots during that
time
AUTOMOBILE COMPANY END
Once the vehicle reaches the storage area. The
storage area has two docks for unloading, but the
docks are suited only for height of28 feet or below
vehicle where it can be rear loaded by pushing the
trolley from the rear. This will consume less time, but
our vehicle which is used for carrying seats are
designed at a height of 32 feet, so the vehicle has to
be unloaded away from the dock. It is achieve the
same time as rear way loading.

LOADING AND UNLOADING SUPPLIER

END

Seating company has a single dock. They are

supplying for both truck and bus plant. Truck plant
 INPLANT LOGISTICS

Figure 9SIde way loading

MATERIAL GATE PROCESS

The vehicle reaching the vehicle gate must go
through a certain process before reaching the storage Trolley Distribution
area. Delay in this process occurs because of the
following reasons

 The vehicle has to wait until driver gets the

daily pass before going for the document
verification
 Due to the manual error, details in the
invoice may mismatch wil the ASN, which
will cause the vehicle to hold.

PROPOSED INBOUND LOGISTCS

TRANSIT
Starting the first trip at 7.15 am will reduce the time
lost due to traffic. This can be achieved by
coordinating the time for both bus and truck, getting
the first trip before the truck plant vehicle this will
help in achieving three trips a day. Prior information
should be provided by the supplier such that the
vehicle should not wait at the supplier for production
delay

MATERIAL GATE PROCESS SUPPLIER END

Availability of Monthly pass will reduce the time that
is lost in getting the daily pass. With the monthly
pass the driver will be allowed for yard without
waiting for the daily pass. This time can also help in
achieving three trips
The major reason for delay in the
supplier end is the difficulty in time allocation for
both the truck and bus vehicle. Truck plant operates
four vehicles and overall eight trips in a day whereas
bus plant operates four trips a day with a single
vehicle. Truck plant gives a triggerto the supplier at
the end of the day about the time of delivery. Based
on which the pickup and drop schedule is planned. So
trigger can be given from the bus plant about the
tomorrow’s production schedule, so that the supplier
can plan their loading and unloading schedule, which
will reduce the waiting time of the vehicle before
loading.
PROPOSED TIME CHART:
There is a single ramp for loading and
unloading, so only one vehicle can be loaded at a
time. The supplier is planning to build another
ramp for loading and also another plant for
supplier is in progress, which can be used to
achieve the desired time.