EXPLORING THE SCOPE OF OPTIMISING THE SUPPLY CHAIN NETWORK - A CASE STUDY ON THE INDIAN AUTOMOTIVE COMPANY

Abstract

Title: Exploring the scope of optimizing the supply chain network - A case study on an Indian automotive company
Author: Arvind Vikram Devendran
Supervisor: Louise Bildsten - senior lecturer at the division of engineering logistics & program director of logistics and supply chain management
Purpose: The purpose of this thesis is to investigate and propose an optimal solution for the current supply chain network, to find an optimal logistics cost, warehouse cost, material handling cost, not compromising on the quality, cost, delivery and sustainability.
Background: The commodity of the product or its design or the nature of the product is so that the sintered powder metallurgical product loses its quality by the time it reaches its customer at USA. Hence the parts are subjected to undergo yet another quality improvement process at USA, after its manufacturing in India, after they are moved to the warehouse at USA. Though the customer is satisfied, considering the logistics cost involved, additional processes involved, and complexity in handling the goods, the continuation of the business is a challenge, as there is a significant hit in the bottom-line i.e. profit. However, business synergy is also to be considered on the high focus topic.
Method: An inductive approach has been adopted. The work process has been iterative and empirical qualitative data has been gathered through semi-structured interviews with different stake holders, historical inputs and literature studies from similar case studies.
Conclusion: By using empirical data and relevant case studies, an optimal solution was proposed that ensures not altering any of the deliverables to the customer and reducing the impact on the bottom-line of the company’s financials.

Popular Abstract

EXPLORING THE SCOPE OF OPTIMISING THE SUPPLY CHAIN NETWORK- A CASE STUDY ON THE INDIAN AUTOMOTIVE COMPANY
The core principle of logistics and supply chain management is all about delivering the right product, with right quantity, to the right place, at the right time, and at the right condition. The supply chain here we mention, both the inbound and outbound activities of any manufacturing facilities/ service providers. Apart from the technical and commercial aspects, these attributes mentioned above becomes very vital for a successful supply chain activity both for the upstream and the downstream activities.
Our thesis revolves around optimising the outbound logistics of an automotive company from India, for its supplies to one of its over seas’ suppliers in USA. The company was a leading manufacturer and supplier of powder metallurgical parts from India across the globe. The company was operating an outbound bonded warehouse at USA, near to its customer’s facility to ensure on-time delivery to its customer. The issue in the supplies arises when there is a quality issue in the parts due to powder metallurgical disproportion between the alloy mixtures. The company identified a third party re sintering service provider at USA to fix the quality issues.
There started the issues towards part mix-ups, part multiple handling, repackaging the parts, stock mismatches at the bonded warehouse, premium mode of supplies from India to bonded warehouse in USA. All leading to delayed supplies to the customer, threat for customer production line stoppage, customer dissatisfaction and putting the business under stake. So, the company identified yet another warehouse for an interim solution to secure the seamless supplies and production of its supplier. But the compatibility between the identified new warehouse and the existing warehouse is to be analysed and the best possible option is to be implemented.

Two research questions are identified to identify the key stakeholders and to evolve an improved supply chain network. In finding answers to these research questions, a complete literature reviews are made across different journals and articles from scholars with which a clear theoretical framework arrived. To optimise the supply chain, strategic alignment and process improvements are found to be the key parameters. The key stakeholders are identified inside the company; who’s inputs can influence the final decision by the management. A proper Delphi analysis is done with two round table of discussions from these identified stakeholders. The results from this Delphi analysis are taken as key inputs for our analysis. In parallel a complete comparison between the compatibility of the warehouses is analysed.
Each of the warehouses has got their own merits and demerits. Considering the most optimal solutions and the output of the Delphi analysis, here in our project the new warehouse is identified to be the best solution to the current issue for avoiding any part mix-ups, multiple handling or any part damages in handling etc. The result of this thesis is very specific for the case and with the given situation. The thesis has got its own challenges, as time constraint, bench marking with any other warehouse operations, etc. Amidst all these odds, this thesis has narrowed down with permanent, temporary solutions for the company. The solution has got strong justifications over which these suggestions have arrived.
Sure, this thesis would be of great support and can give a broad perspective for any researcher who intend to improve or optimise the supply chain network in any of the manufacturing segments. This complete study will be available in the published report, under the same title mentioned here by author Arvind Vikram Devendran at the Faculty of Engineering logistics- LTH, Lund university.

• author: Devendran, Arvind Vikram
• supervisor: Louise Bildsten
• organization: Production Management; Engineering Logistics
• course: MTTM02 20241
• year: 2025
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Keywords: Bottom-line, Customer loyalty, Deming Award, Powder Metallurgy, Red Ocean Market
• other publication id: 6052
• language: English
• id: 9203858
• date added to LUP: 2025-06-25 16:27:08
• date last changed: 2025-06-25 16:27:08