Internship Project Report on

“A Project Report on Direct Material Planning & Logistic Activities.”

Submitted in partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

by

Kavita Valia, 20210301004

Under the guidance of

Mr. Ajit Dalvi Mr. Mahadeo Kore

(Assistant Professor at DYPIU) (Head of Procurement at HD HCE)

Sector 29, Pradhikaran, Akurdi, Pune - Maharashtra, INDIA 411044

(Establishment by Maharashtra Act No. LXIII of 2017 Government of India)
 STUDENT DECLARATION

This is to certify that I have completed the Internship Project titled “A Project Report on Direct
Material Planning & Logistic Activities” under the guidance of Prof. Ajit Dalvi” in partial
fulfillment of the requirement of the degree of Bachelor of Business Administration (BBA) from
D Y Patil International University, Akurdi, Pune. This is an original piece of work & I have not
submitted it earlier elsewhere.

Name: Kavita Valia PRN: 20210301004

Date: Place:
Signature:
 Company Certificate
(In certificate, title of project, place where internship is conducted, start & end date of project
should be included)
 Sector 29, Pradhikaran, Akurdi, Pune - Maharashtra, INDIA 411044
(Establishment by Maharashtra Act No. LXIII of 2017 Government of India)

CERTIFICATE

This is to certify that _Kavita Valia & 20210301004 of student at Dy Patil International
University is a bonafide student of this university and has successfully completed her internship
project entitled PROJECT REPORT ON DIRECT MATERIAL PLANNING AND LOGISTIC
ACTIVITES partial fulfillment of the degree of Bachelor of Business Administration (BBA)
from D Y Patil International University, Akurdi, Pune.

Mr. Ajit Dalvi

Assistant Professor, SCM, DYPIU

Dr. Madhavi Deshpande

Dean Academics and Director, School of Commerce &

Management D.Y. Patil International University,

Akurdi, Pune
 ACKNOWLEDGEMENT

I am thankful towards all those people who helped me in this venture. It would not have been
possible without the kind support and help of many individuals and organizations. I would like to
extend my sincere thanks to all of them.

I am highly indebted to Mr. Mahadeo Kore HD Hyundai Construction Equipment India Pvt.Ltd,
Head of Procurement for their guidance and constant supervision as well as for providing
necessary information regarding the project & also for their support in completing the project. He
was not only a mentor and guided me with the project but also provided help, motivation and
learnings that could work out for us in the professional and competitive environment. I would
like to express my gratitude towards members of (HD Hyundai Construction Equipment India
Pvt.Ltd) for their kind co-operation and encouragement which helped me in completion of this
project.

Discussions and deliberations with them have enriched my knowledge to complete my project in
a better way. I won’t be able to continue in compiling this text if they would not have supported
me. I express my deepest thanks to my Faculty Mentor Mr. Ajit Dalvi (Assistant Professor) for
his guidance and support. He supported me by showing different methods of information
consolidation and reaching out to prospective clients. He helped whenever I needed guidance and
gave right direction towards the completion of the project.

I am and will be always thankful to my family for their all-time support and for putting up with
all the disruptions in my life caused by my involvement in this venture. My thanks and
appreciations also go to my colleagues in developing the project and people who have willingly
helped me out with their abilities.

I would not have succeeded in this process but for their help and support. I thank you all from the
bottom of my heart. I am really grateful to all of them in helping me throughout my internship
project which was completed successfully

Place:
 Executive Summary
The project report titled "A Project Report on Direct Material Planning and Logistic Activities"
provides a comprehensive analysis of the critical functions of material planning and logistics
within the context of supply chain management, specifically focusing on the construction
equipment industry.

The report begins by explaining the concept and importance of material planning, highlighting its
role in ensuring timely availability, quality assurance, and cost-effectiveness of materials
necessary for production. It outlines the material planning process, including phases such as part
identification, supplier selection, RFQ process, design validation, vendor evaluation, and PO
creation, among others.

Furthermore, the report delves into the role of logistics in the overall supply chain management,
emphasizing its significance in efficiently managing the movement and storage of goods,
services, and information. It discusses various types of logistics, such as inbound, outbound, and
reverse logistics, and elaborates on key components like transportation, warehousing, inventory
control, packaging, and information management.

The relationship between material planning and logistics is thoroughly evaluated, emphasizing
the coordination required between these functions to maintain production schedules, minimize
costs, and meet customer demands effectively. The report underscores the importance of
continuous improvement and adaptation in both material planning and logistics, highlighting the
need for feedback loops, performance metrics, and stakeholder engagements to drive process
refinement and innovation.

Overall, the project report underscores the significance of effective supply chain management,
including material planning and logistics, in achieving cost optimization, improving customer
satisfaction, streamlining operations, and fostering sustainable business growth. It emphasizes the
critical role of material planning and logistic activities in enhancing overall supply chain
performance and competitiveness in the manufacturing landscape.
 TABLE OF CONTENT
Sr. No. Contents Page No.

Introduction

1  Background of study 10-13

 Industry profile
 Recent industry trends

Company profile

 Company history
 Company vision and mission

2  Achievements, Ratings 14-28

 Global presence
 Services and product profile
 Company process
 Other details

Methodology & Analysis

 Scope of study
3  Objectives of project 29-32
 Design & Type of study
 Sources of data collection

Process Study
 Material planning process
 SCM
4 33-50
 Logistic process / activities
 Presentation of data
 Data analysis along with interpretation
5 Findings

Conclusion 51-54

Limitations of project

6 Observations & Learnings from project 55-57

Appendix

7  Bibliography 58
INTRODUCTION
1.1 BACKGROUND STUDY

The construction equipment industry plays a pivotal role in facilitating infrastructure

development worldwide. It encompasses a broad range of machinery, tools, and vehicles utilized
in construction activities, ranging from earthmoving and material handling to concrete and road
construction.

Market Overview: The construction equipment industry is characterized by its diverse product
offerings, extensive market reach, and significant economic impact. It serves various sectors,
including residential, commercial, industrial, and infrastructure development projects.

Key Segments:

Earthmoving Equipment: Includes excavators, loaders, and graders used for digging, moving, and
leveling earth.

Material Handling Equipment: Encompasses cranes, forklifts, and hoists utilized for lifting,
transporting, and positioning materials.

Construction Vehicles: Comprises dump trucks, cement mixers, and off-highway trucks
employed for transporting materials and equipment onsite.

Challenges:

Fluctuating Raw Material Prices

Stringent Emission Regulations

High Initial Investment Costs

Intense Competition and Market Fragmentation

Future Outlook:

The construction equipment industry is poised for significant growth driven by increasing
infrastructure investments, technological innovations, and sustainability initiatives. However,
market players must navigate challenges such as regulatory compliance and evolving customer
demands to capitalize on emerging opportunities effectively.
1.2 INDUSTRY PROFILE

The construction machinery manufacturing industry is a significant sector, with a global forecast
to reach about $235 billion. It encompasses the production of machinery designed for
construction, earthmoving, and other large-scale operations. With a rich history dating back to
ancient times, modern heavy equipment manufacturers like HD Hyundai Construction
Equipment, Caterpillar, Volvo, Liebherr, and Bobcat which are known for producing heavy
equipment such as excavators, cranes, and tractors. Continue to innovate and lead the sector
globally.
Heavy equipment has evolved significantly over centuries, from early human and animal-
powered machines to sophisticated electric and robotic vehicles. The transition from human and
animal labor to steam-powered engines in the 19th century marked a significant turning point.
Portable steam engines paved the way for the development of core traction engines, such as
steam tractors and steam rollers.
In the 20th century, internal-combustion engines, particularly diesel engines, emerged as the
primary power source for heavy equipment. Hydraulic machinery gradually replaced mechanical
transmission systems, enhancing efficiency and performance. Iconic machines like the first mass-
produced heavy machine were the Fordson tractor in 1917. The first commercial continuous track
vehicle was the 1901 Lombard Steam Log Hauler, which exemplifies key milestones in heavy
equipment manufacturing history.
Today, bucket-wheel excavators are the largest engineering vehicles and mobile land machines.
Major equipment manufacturers have released or are developing electric-powered heavy
equipment. Robotics and autonomy have become a growing concern for heavy equipment
manufacturers Key Players:
• HD Hyundai Construction Equipment: Renowned for delivering top-quality excavators
and heavy machinery, HD Hyundai is a leading player in the Indian market.
• Caterpillar Inc.: A global giant in heavy equipment manufacturing, Caterpillar offers a
comprehensive range of machinery for construction, mining, and forestry applications.
• Volvo Construction Equipment: Known for its commitment to sustainability, Volvo
manufactures a diverse portfolio of construction equipment, including excavators, loaders, and
compactors.
Future Outlook: The heavy equipment manufacturing industry is poised for continued growth and
innovation. With increasing emphasis on sustainability and automation, manufacturers will
continue to explore alternative energy sources and integrate cutting-edge technologies to meet
evolving customer demands and regulatory requirements. As construction and infrastructure
projects expand globally, the demand for reliable, efficient, and environmentally friendly heavy
equipment will remain strong, driving further advancements and opportunities in the sector.

1.3 RECENT TRENDS IN INDUSTRY

The earth moving heavy equipment industry is witnessing substantial growth and undergoing
transformative changes driven by several key factors and trends:

Market Growth Projection: the heavy construction equipment market is expected to witness
strong growth in the coming years, reaching a size of $271.22 billion by 2028 with a CAGR of
7.1%. This growth can be attributed to factors such as infrastructure modernization, sustainable
construction practices, expansion of the global mining industry, and focus on operator safety,
emerging market development, customization, versatility, and the rise in the rental market.

Excavator Market Analysis: The excavator market has experienced significant growth due to
increased investments in the construction sector, especially in countries like India, China, and
South Korea. Excavators are in high demand for large-scale projects in mining, road and port
construction, and oil and gas construction industries. The concept of excavator rentals has also
gained popularity, allowing manufacturers and operators to utilize the machinery without major
capital commitments.

Earthmoving Equipment Market Trends: Some major trends in this industry include the digital
transformation in construction, technological advancements, and the adoption of electric and
hybrid construction equipment. There are also efficiency improvements with advanced hydraulic
systems and the use of telematics.
 Shift towards Electric and Hybrid Machinery: The market is witnessing a shift towards
electric and hybrid machinery to reduce emissions and enhance fuel efficiency.
 Integration of IoT and Data Analytics: IoT and data analytics are increasingly used for real-
time monitoring, predictive maintenance, and operational insights.
 Rental and Leasing Services: Rental and leasing services are gaining popularity, providing
access to the latest equipment without significant upfront costs.
 Autonomous Operation: Automation and autonomous technologies are improving safety,
productivity, and precision on construction sites.
 Telematics and Connectivity: Telematics systems enable real-time monitoring, fleet
optimization, and predictive maintenance, reducing downtime.
 Equipment Digitization and IoT Integration: Digital technologies and IoT integration
transform equipment design, operation, and maintenance, providing real-time insights.
 Focus on Sustainability: Environmental concerns drive exploration of alternative materials,
energy-efficient designs, and cleaner propulsion systems.
 Modular and Versatile Designs: Customers seek versatile equipment with interchangeable
attachments and multi-functional capabilities.
 Enhanced Safety Features: Innovations in safety technologies mitigate risks and promote
safer working environments.

These trends collectively reflect a rapid transformation in the earthmoving heavy equipment
industry, propelled by technological innovation, environmental consciousness, and evolving
customer demands. Embracing these trends allows manufacturers and contractors to stay
competitive, meet regulatory requirements, and deliver sustainable solutions for construction
and infrastructure development.
COMPANY PROFILE
2.1 BRAND LOGO, SLOGAN & OVERVIEW

2.1.1 LOGO - The “Forward Mark” Perfectly Captures Our Brand Philosophy

It is an evolution of the original triangle transformed into a dimensional forward arrow rendered
with different shades of green. It’s a symbol of their purpose as we forge ahead in a new age of
discovery to lead the change needed for a sustainable future. They call the combination of these
new assets the Forward mark — a new identity that unites our growing Group’s businesses and
brings the spirit of Hyundai to future generations.

(The "HD" of "HD Hyundai" captures the meaning of "making "Human Dreams' come
true with 'Human Dynamics.")

2.1.2 SLOGAN- The New Slogan Encapsulates Our Core Mission of Creating a Future
Marked by Tranquility and Well-Being.

With a focus on building a healthy and sustainable environment for future generations, this
powerful statement highlights their steadfast dedication to combining careful planning and
intentional actions. The mission is to make a significant contribution to the creation of a world in
which people everywhere can enjoy superior comfort by leading the way in the development of
new products, providing considerate services, and spearheading community development
initiatives and the methodology extends beyond construction and is consistent with a larger goal
of improving lives and promoting sustainability worldwide.

2.1.3 Overview of Hyundai Construction Equipment Pvt.Ltd

HD Hyundai Construction Equipment India (HD Hyundai CE India) started its operations in
India in 2007 and rolled out its first machine in 2008 from its manufacturing facility at Chakan,
Pune. In a short period, the company has achieved the No.2 position in the domestic market. HD
Hyundai CE India offers an extensive range of 36 variants in 6 product lines, including Crawler
Excavator, Mini-Excavator, Mining Excavator, Rock breaker, Special Attachments, and Material
Handling Equipment. The company's products are exported to more than 15 countries in SAARC
(South Asian Association for Regional Cooperation), MEA (Ministry of External Affairs), and
Asia. HD Hyundai CE India has an active machine population of over 40,000+, which is served
through 225+ full-fledged 3S (Sales, Service, and Spares) branches and dealers. The company
has established 3 Parts Warehouses and 6 Regional Offices to support 37 dealers, 4 Overseas
dealers, and over 225 outlets. HD Hyundai CE India also imports Mini Excavators and Material
Handling Equipment from South Korea to provide the Indian market with the best excavator in
India.

The company's commitment to serving India and global markets is demonstrated through its new
product launches, which are developed to maximize fuel efficiency, improved features, higher
productivity, and super durability.

HD Hyundai CE India has a vast network distribution to provide the best after-service
experience and genuine parts support to its customers across India.

2.2 COMPANY’S VISION & MISSION

VISION

• Global leader in Smart Construction Equipment

Ecosystems.

MISSION

• Creating Solid Beginnings for Comfortable Tomorrow.

COMPANYS CORE VALUE

• Transform the way we work with creative mindset.

Technology/
Shape the future of our industry through innovative and
Quality Innovation
disruptive technology.
• Respect diversity and encourage open communication.
Care for our people’s personal and professional growth.
Risk Management Make a better world by upholding social responsibility.
2.3 COMPANY’S HISTORY

(1945-2005)
1947- Foundation of Hyundai Group
1972- Groundbreaking (Ulsan, Shipyard)
1986- Foundation of Construction Equipment development center
1987- Inauguration of first factory (Ulsan, Korea)
1994- Meger: The Construction Equipment Division merges with Hyundai Heavy Industries Co.
Ltd.
2005- Manufactured 100,000 units of Construction Equipment in the shortest time in Korea

(2006-2019)
2008- Inauguration of Hyundai Construction Equipment Factory in India.
2015- Launch: Smart Series and Mini-Excavators introduced in India.
Rolled Out: 500,000 excavators from Ulsan, Korea.
10,000 excavators from Pune factory, India.
2016- Achievement: 2nd Position in Indian Excavator Market.
Establishment: Dealerships for material handling business.
2017- Launch: Material Handling division started in India
Spin-off: Hyundai heavy industries splits into Hyundai Electric, Hyundai Construction
Equipment, Hyundai Robotics.
2018- Rolled Out: 20,000 excavators from Pune factory, India.
2019- Inauguration: Corporate office parts & distribution Centre

(2020-Present)
2020- Establishment: Parts warehouse East.
2021- Launch: SMART plus series, Special attachment launch, Customer first app launch,
Hyundai ICICI AR program, Re Manufactured series machine & Regional parts warehouse
inauguration (Bangalore).
2022- Inauguration: of XL rebuilt Centre & 35000 Excavators rolled out
2023- Launch: of HX520L, SMART Plus series Excavators & Forklifts.
2.4 COMPANY’S ACHIEVEMENTS (2022-2023)

1- Hyundai Construction Equipment India has won

the "Best Design Innovation Award Of The
Year" for Model "R215L SMART Plus" by
Equipment Times @ Yellow Awards 2022.

2- HD Hyundai Construction
Equipment India has won the “Best Design
Innovation Award of the Year” for Model
HX380L Mining Excavator by Equipment
Times at Yellow Award 2023.

3- HD Hyundai Construction Equipment

India was recently awarded as the
“Best Company in Earthmoving
Equipment” at the 8th Edition of
Construction & Infra Awards 2023”
by EPIC Media.

4- Hyundai CE India has taken home the title of First Runner -Up for Equipment
Company of the Year at the Equipment Times Awards 2023.
 2.5 GLOBAL PRESENCE

Global Reach: HCE operates in Asia, Europe, North America, South America, and Africa/Middle
East.

Strategic Locations: Manufacturing facilities in South Korea, China, and India cater to regional
needs.

Strong Networks: Subsidiaries and distributors ensure product availability and customer support.

Regional Highlights:

Asia: Strong presence in South Korea, partnerships in Africa/Middle East.

Europe: HCEE headquarters in Belgium, strong dealer network.

North America: Robust presence in US, Canada, and Mexico.

South America: Investments in Brazil, Argentina, and Chile.

Africa/Middle East: Partnerships with local companies and distributors.

Overall:

HCE is a major player in the construction equipment industry with a significant global presence.

Focus on innovation, quality, and customer satisfaction leads to success in diverse markets.

Strategic investments and partnerships ensure effective catering to regional needs.

2.6. PRODUCTS & SERVICES

2.6.1 Excavators

MINI EXCAVATORS

Hyundai's R30Z-9AK and HX35AZ mini excavators are designed for confined work
environments, offering safety, visibility, and reinforced canopies. They are ideal for agriculture,
landscaping, pipe laying, municipalities, road construction, and civil works. Equipped with
refined engines, these machines come with genuine parts, after-sales support, and a PAN India
distribution network.

R30Z-9AK HX35AZ

Text Box

CONSTRUCTION EXCAVATOR

Hyundai, founded in 2007, is a leading manufacturer of construction excavators with advanced

features like ECO mode, Computer Aided Power Optimization (CAPO), Fuel-Saving Kit,
Reinforced Structure and Undercarriage, Digital Cluster, and Easy Maintenance. They understand
Indian construction requirements and produce hydraulic excavators with superior performance,
durability, and fuel efficiency. Their SMART and SMART PLUS series are popular in India,
offering operator comfort and user-friendly functionality. This vast portfolio includes 85A SMART,
130 SMART, R140LC-9, R140LC-9V, 210 SMART Plus, 215L SMART Plus, and 245LR SMART.
These excavators are suitable for various applications, including agriculture, brickfield,
construction, quarry, earthwork, waste management, land development, well digging, and
demolition.

R85A SMART PLUS R130 SMART

R140L SMART PLUS R150L SMART PLUS

R210 SMART PLUS

 R215 SMART PLUS R245LR SMART PLUS

MINING EXCAVATOR

HD Hyundai Construction Equipment India has been a leader in providing world-class crawler
excavators for 15 years. Their mining excavators are designed for productivity and cater to
evolving mining and construction needs. They are classified into SMART, SMART Plus, and HX
series, offering best-in-class performance, operator comfort, enhanced fuel efficiency, improved
machine durability, and hassle-free maintenance. The HX series includes HX360L for quarry,
mining, and earthwork applications, and HX380L for marble and granite applications. These
smart excavators come with genuine parts, after-sales support, and dealer networks.

R215L SMART PLUS R220LS SMART PLUS

 R230LM SMART PLUS

R340L SMART HX 360L

HX 380L HX 520L
 XL SERIES

Hyundai just introduced the XL series, an extended life

model. Old machines that are acquired from customers
are used to remanufacture the XL series. According to
HCE Korea's Global Quality Standards, these machines
are constructed using durable manufacturing procedures,
exacting quality inspections, and original replacement
parts. Every XL series model has a remote management

system, a CMCU-controlled engine for optimal fuel

economy, and the newest technology comparable to that
of brand-new machinery built in.

2.6.2 WHEEL LOADERS

Front loaders, sometimes referred to as wheel loaders, are heavy-duty, multipurpose machines
that can transport large loads. Digging, carrying, hauling, and transporting material on-site is the
main function of a wheel loader. Large-scale items can be carried effectively by a wheel loader
arm equipped with a hauling bucket or scoop. They can be utilized for landscaping and
agriculture in addition to building sites. Because loaders are available in multiple sizes, they can
be used for projects of any scale.

 HL930I HL950I
2.6.3. MATERIAL HANDLING

FORKLIFT

For all your different load handling needs, Hyundai has a large selection of forklifts. You may
count on the greatest performance possible across a range of metrics when you complement your
team with a Hyundai forklift. These state-of-the-art forklifts have many advantages, including
more efficient fuel use, shorter operation cycles, and convenience of use. High productivity and
profitability in your operations are always guaranteed when these machines are on your side.

FORKLIFT

Diesel Forklifts Electric Forklifts LPG Forklifts

WAREHOUSING EQUIPMENTS

Hyundai's collection of warehouse equipment provides excellent options for handling and storing
materials. The machinery is capable of handling a wide range of jobs, including loading,
stacking, distributing, and horizontal transport. These devices will boost your efficiency and
production because they are made to provide the highest level of safety, comfort, and control.

WAREHOUSING
EQUIPMENTS

Reach Truck Order Picker Class 3 Equipment Tow Truck

2.6.5 Services

In addition to attachments and genuine parts, Hyundai provides various services to support their
customers. These services include rebuild solutions, warranty coverage, training centers,
maintenance contracts, and customer support. The rebuild center offers comprehensive solutions
for machine refurbishment, while the warranty coverage provides peace of mind to customers.
Training centers aim to enhance the skills and knowledge of operators and technicians.
Maintenance contracts provide regular maintenance and servicing for machines, ensuring optimal
performance. Finally, customer support is available to address any queries or concerns that
customers may have.

Overall, Hyundai offers a comprehensive range of attachments, genuine parts, and services to
enhance the performance, durability, and efficiency of their machines

COMPANY PROCESS

HD Hyundai Construction Equipment India Pvt. Ltd is a major player in manufacturing advanced
hydraulic excavators and material handling equipment. HCE follows a comprehensive process to
ensure the design, manufacturing, quality control, distribution, and customer support of their
construction equipment. Here is an overview

Research and Development (R&D):

 HD Hyundai Construction Equipment likely begins its process with extensive research
and development efforts to design and engineer new equipment or improve existing
models.
 This stage involves market analysis, customer feedback incorporation, and
technological advancements integration to ensure the equipment meets industry
standards and customer needs.

Manufacturing:

 Once the design phase is completed, HCE moves into manufacturing. This involves
sourcing raw materials, components, and parts from suppliers.
 The manufacturing process includes assembly lines, quality control measures, and
adherence to safety standards to produce high-quality construction equipment.
Quality Control:

 Quality control is a critical aspect of Hyundai's process. Inspections and testing are
conducted at various stages of production to ensure that each piece of equipment meets
stringent quality standards.
 This involves both automated quality checks and manual inspections to identify any
defects or deviations from specifications.

Distribution and Sales:

 After manufacturing and quality control, HCE distributes its products through its network
of dealers and distributors across India.
 Sales teams work to market the equipment to potential customers, providing information
about features, benefits, and after-sales services.

Customer Support and Service:

 HD Hyundai Construction Equipment places a strong emphasis on customer support and

service. This includes providing training to equipment operators, maintenance and repair
services, and access to spare parts.
 Customer support teams are available to address any inquiries, issues, or concerns that
customers may have throughout the lifecycle of the equipment.

Continuous Improvement:

 HCE is likely engaged in continuous improvement initiatives to enhance its processes,

products, and services.
 Feedback from customers, market trends, and technological advancements are all
considered in this process to ensure that Hyundai remains competitive and delivers value
to its customers.

Environmental and Social Responsibility:

 As a responsible corporate citizen, HD Hyundai Construction Equipment India may also

prioritize environmental sustainability and social responsibility initiatives.
 This could include efforts to reduce the environmental impact of its operations, promote
workplace safety, and contribute to the communities in which it operates.
2.8. Other Details

2.8.1 CSR (Corporate Social Responsibility) Initiatives:

HD Hyundai Construction Equipment India is deeply committed to Corporate Social

Responsibility (CSR) initiatives aimed at creating a positive impact on society. They focus on
Education, Health, and Environment:

Education: Donations, clothing, educational aids, and materials are provided to orphanages, old
age homes, and various schools, including those for the blind and tribal communities.

Disaster Relief: HD Hyundai Construction Equipment India supports disaster relief efforts by
providing excavators for flood-affected areas and contributing to relief funds during disasters like
the 2018 Kerala floods.

Healthcare: The company organizes blood donation camps to promote community health and
well-being.

Environmental Initiatives: Participation in cleanliness campaigns, support for drought-affected

regions, water conservation efforts, and disaster management assistance showcase their
commitment to environmental sustainability and community development.

2.8.2 Economic Analysis:

Market Position and Product Range: HD Hyundai Construction Equipment India holds the No.2
position in the domestic market, offering 36 variants across 6 product lines to meet diverse
construction needs.

Distribution and After-Sales Support: With over 225 full-fledged 3S branches and dealers
nationwide, HCEI ensures excellent after-sales service and genuine parts support.

Export Market: HCEI exports products to 15+ countries in the SAARC, MEA, and Asia regions,
demonstrating its global presence and adherence to international standards.

Industry Impact: Amidst India's growing construction equipment market, HCEI's market position
contributes to industry growth through infrastructure development and government initiatives.
Financial Performance: As of the fiscal year ending March 31, 2023, HCEI reports operating
revenues exceeding INR 3000-3500 crore, reflecting its financial stability and market presence.
Methodology & Analysis
3.1 SCOPE OF THE STUDY

Planning of Material at Various Stages of Procurement and Analysis of supply chain from
logistic point of view. Here's a breakdown of what can be included under this scope:

General Scope:

The study focuses on the working activities of Material Planning and Logistics Activities. It is a
detail study of the processes right from Part Identification to final Product distribution

Procurement stage:

It involves the process of purchasing necessary materials

 Supplier Selection & Evaluation: Is a critical process in procurement that involves

Identifying potential suppliers on the basis of price, quality, delivery, MARQ audit and
reliability.
 Ordering Process: Is the process of obtaining goods or services from suppliers It
involves steps like identifying needs, creating purchase orders, selecting vendors, tracking
orders, receiving goods, and making payments.
 Receiving and checking: Includes receiving delivered items and inspecting them to
ensure they meet quality standards are accurate and comply, with specifications.

Material Planning:

This involves the process of determining what materials are needed, when they are needed, and in
what quantities.

 Inventory Management: Managing inventory involves supervising and regulating the

materials or products a company has in stock. It includes making sure the appropriate
number of materials is, on hand when needed while also reducing surplus inventory and
related expenses.
 Demand Forecasting: This is the process of predicting future demand for the company's
products. This could involve statistical methods, market research, or a combination of
both.
Supply Chain Analysis:

 Warehousing: Storing and managing goods in a location is what warehousing is, about.
The goal is to arrange, store and manage inventory effectively to guarantee operations and
prompt access, to materials as required.
 Logistics Planning: Planning logistics involves coordinating and organizing the
transportation of materials, products and information, across the supply chain. It requires
making decisions and executing plans to guarantee a successful flow of goods, from
suppliers to customers.
 Transportation: Evaluating transportation options by assessing the different modes
available and determine which one is most suitable for the specific needs of the materials.
This involves considering various factors such as distance, volume, urgency, and specific
requirements of the materials being transported.
 Distribution: Finished products are distributed to customers, by using many strategies for
efficient distribution.

3.2 OBJECTIVES

To understand the concept, importance & process of Direct Material Planning in a business.

To analyse the role of logistics in the overall supply chain management.

To evaluate the relationship between Direct Material Planning and Logistic Activities.

3.3 DESIGN AND TYPE OF STUDY

This report was compiled using insights gained during my internship and through personal
learning and comprehension. The collection of primary data was essential and greatly facilitated
the construction of the report, while secondary data was necessary to organize and bolster its
structure.

3.4 SOURCES OF DATA COLLECTION

In this project report both primary data collection and secondary data collection methods used .
Primary Source: Primary data is the data that is collected for the first time through personal
experiences or evidence, particularly for research. It is also described as raw data or first-hand
information. Therefore, in this report, the main resources are looking at various workstations and
speaking with office employees

Secondary Source: Secondary data refer to those data that have already been collected by some
other person. Therefore, in this report the secondary source data are websites, books, and journal
articles, extensive and elaborate study of the existing files, convenient case clarifications.

3.5 PRESENTATION OF DATA

The data presented in the report is in the form of textual presentation as well as, Process Charts,
in Hierarchy Charts and in Tables that details Material Planning/Procurement as well as Logistics
Activities.
Process Study
4.1 MATERIAL PLANNING PROCESS

Material Planning is a critical function within any business, particularly in manufacturing

industries where the procurement and management of direct materials are pivotal for production
continuity and efficiency. The Material Planning Process encompasses a series of structured
activities aimed at ensuring timely availability, quality assurance, and cost-effectiveness of
materials required for production. The following is the elaborated concept and importance of
Material Planning, elucidating each step outlined in the comprehensive sourcing process
provided.

4.1.1 Understanding Material Planning:

Material Planning is the systematic approach to manage the acquisition, utilization, and
distribution of materials necessary for production. It involves forecasting demand, identifying
suppliers, negotiating contracts, overseeing quality control, and optimizing inventory levels. The
primary goal is to streamline the flow of materials, minimize costs, and meet production
schedules without interruption.

4.1.2 Types of Phases/Lot:

The distinction between Pilot, Proto, and Mass Lot phases within the Material Planning Process
reflects the progressive stages of material procurement, testing, and production scale-up:

Pilot Lot: Involves initial material procurement and testing to validate product design and
manufacturing processes, ensuring feasibility and identifying potential improvements.

Proto Lot: Represents the prototype phase where materials are tested in real-world conditions to
assess performance, durability, and compatibility before full-scale production

Mass Lot: Signifies the transition to full-scale production, where materials are procured in larger
quantities to meet market demand, necessitating robust inventory management and supply chain
coordination.
4.1.3 Process
Part
Identification
and Supplier
Selection

Material Receipt,
Validation, Cut- RFQ and
off & Schedule Negotiation
Planning

Design
PO and Material
Validation and
Master Creation
Approval

1. Part Identification: This is the initial stage where the necessary parts for production are
identified. The identification is based on factors such as cost-saving against CKD
(Completely Knocked Down) parts, quality issues, capacity constraints, and critical
supplier parts. This stage is crucial as it sets the foundation for the entire DMP (Direct
Material Planning) process.
2. Probable Supplier Selection: The selection of suppliers is a critical aspect of the
material planning process. It entails comprehensive analysis based on competition data,
market studies, and supplier capabilities. Initiating Non-Disclosure Agreements (NDAs)
with potential suppliers fosters trust and confidentiality. Moreover, RFQ process serves as
a cornerstone for engaging suppliers and specifying purchase order specifications.
3. RFQ: Once a supplier is selected, an RFQ is sent to the supplier. The RFQ contains the
Purchase Order Specification (POS) approved by the R&D/TD department, along with
commercial terms and conditions and technical details. This stage is important as it
initiates the formal procurement process.
4. Design Validation: Design Validation Plans (DVPs) play a pivotal role in ensuring the
compatibility and suitability of sourced parts. Collaboration with technical departments
ensures alignment with technical requirements. Upon receiving quotations and techno-
commercial offers, negotiations ensue to arrive at mutually acceptable agreements,
encompassing pricing, terms, and conditions.
5. Quotation and Negotiation: Negotiation with suppliers is a strategic endeavor aimed at
securing favorable terms. The supplier sends a quotation or a techno-commercial offer
with all terms and conditions. A comparative statement of the quotation is prepared, and a
target price is formulated for internal discussion. Negotiations are then carried out with
the supplier to get a revised offer. This stage is crucial as it ensures that the materials are
procured at the best possible price.
6. Vendor Evaluation and Registration: If the price is competitive, the vendor is evaluated
as per standard policy. For new suppliers, a MARQ (Manufacturing, Assembly,
Reliability, and Quality) audit is conducted by the QA team. If the supplier passes the
audit, they are registered as a vendor. This stage is important as it ensures that only
qualified and reliable suppliers are registered. MARQ ensures adherence to quality
standards. Final approvals from department heads and management solidify supplier
partnerships.
7. Drawing Approval and Tooling Agreement: The drawing for the proto lot is approved,
and a local part number and PR (Purchase Requisition) are generated from the Technical
Department. If the company is investing in any kind of Tools a tooling agreement is
signed off, and budget approval is obtained from the HOD Production & Finance. This
stage is crucial as it ensures that the design and production tools are in place before the
production begins.
8. Material Master Creation and Audit: A Material Master is created in the system, and
the approved drawing and PR are provided. A MARQ audit is conducted, and the report is
shared with the cross-function team. This stage is important as it ensures that all the
necessary information and quality checks are in place before the production begins.
9. PO Creation: A PO is created in the system by the Material Planning team with all the
necessary details. These documents encapsulate approved drawings, specifications, and
terms negotiated with the suppliers. Attention to detail is paramount, encompassing tax
conditions, freight charges, and the inclusion of all relevant terms and conditions within
the PO. The PO is then printed and filed along with relevant documents. This stage is
crucial as it formalizes the procurement of the materials.
10. Fitment Testing and Quality Assurance: Prototype lots undergo rigorous fitment testing
and quality assurance protocols to validate functionality and compliance with standards.
Validation processes, including audits and testing, uphold quality benchmarks and
 mitigate risks. Collaboration with Research & Development (R&D) and Technical
Departments ensures comprehensive validation, including international standards
compliance if necessary. The development part details are informed to PPIC (Production
Planning and Inventory Control) & GA (General Assembly). The material is in warded by
PPIC and handed over to GA. The machine allocation, fitment, and fitment report are
prepared by PPIC/Assembly.
11. Inspection and Validation: The fitment trial is inspected and cleared. Validation is done
by QA based on the fitment report from assembly and testing report. This stage is crucial
as it ensures that the materials are fit for production and meet the required quality
standards.
12. Engineering Change Request (ECR) and Mass Lot Approval: An Engineering Change
Request (ECR) sheet is prepared and shared with the Technical Department to implement
in the system. After the inwarding of 2-3 mass lots, the sourcing process is handed over to
the Supply Chain Management (SCM) team for further schedule planning.
13. Cut-off and Schedule Planning: As we progress through production cycles, cut-off
approvals become essential for managing stock levels and coverage. Projection of future
requirements and annual demands guides the procurement strategies, ensuring that we
maintain optimal inventory levels while meeting production demands. Handover to our
Supply Chain Management (SCM) team for further scheduling and planning marks the
culmination of this phase.
14. Continuous Improvement and Adaptation: The material planning process is not static;
it requires continual evaluation and adaptation to evolving market dynamics and internal
requirements. Feedback loops and performance metrics drive process refinement and
innovation. Regular reviews and stakeholder engagements foster a culture of continuous
improvement, ensuring agility and competitiveness in the ever-changing manufacturing
landscape

4.1.4 Significance of Material Planning in Business:

Efficient Material Planning is instrumental in achieving several key objectives essential for
business success:
Cost Optimization: By evaluating supplier quotations, negotiating prices, and identifying cost-
saving opportunities, Material Planning helps in optimizing procurement costs, thereby
enhancing the company's profitability.

Production Efficiency: Timely availability of materials ensures uninterrupted production

processes, minimizes downtime, and improves overall operational efficiency.

Quality Assurance: Material Planning involves rigorous supplier evaluation, quality checks, and
adherence to standards, ensuring that only high-quality materials are used in production, thereby
reducing rework and defects.

Inventory Management: Effective Material Planning helps in maintaining optimal inventory

levels, preventing overstocking or stockouts, and reducing carrying costs while ensuring
materials are available when needed.

Supplier Relationship Management: Building strong relationships with suppliers fosters

collaboration, promotes transparency, and facilitates smoother transactions, contributing to long-
term business sustainability.

4.1.5 Conclusion.

The sourcing process is a complex and critical aspect of a manufacturing company's operations. It
involves multiple steps and departments, each playing a crucial role in ensuring the quality and
cost-effectiveness of the parts sourced. The process also requires careful planning, coordination,
and control, with the PPIC department playing a central role in managing the production and
inventory aspects. By following this process, a company can ensure that it has the right products
on hand to meet production orders while minimizing costs and maintaining quality standards.

4.2 SCM.

4.2.1 Production Plan Arrival (25th of Each Month):

The PPIC department generates the production plan for the following month, specifying models,
quantities, and production section schedules.
This plan is sent to the SCM team for material procurement.

4.2.2 Supplier Schedule Creation (By SCM Team):

The SCM team is responsible for procuring the products according to the plan. Each team
member handles a portion of the procurement to avoid any shortage of materials on the
production line. The schedule is prepared with a buffer of 2-3 days before the production start
date to avoid any shortages and to maintain a safety stock that can be used in case of sudden
changes in production plans.

Based on the production plan, the SCM team factors in:

 Safety Stock: A-class items (critical components): 3-6 days stock.

C-class items (less critical): 15 days stock.

 Lead Times: Time required for each supplier and production stage.
 Supplier Capacity: Daily production capacity of suppliers (assumed to be 25 units).
 preponed schedules are created:
Current Month (March): Detailed and accurate schedule listing specific parts (including
variants) with delivery dates 2-3 days earlier than production starts
Next Month (April): Tentative schedule based on sales forecasts.
Following Month (May) & Beyond (18 months): Highly tentative schedules based on
long-term forecasts.

4.2.3 Sending Schedules to Suppliers:

A-Class Suppliers: Receive the 3-month schedule, with increasing vagueness for future months.

B & C-Class Suppliers: Receive preponed schedules for the current month based on production
needs and safety stock levels.

4.2.4 Benefits:

Reduced risk of production line stoppage due to material shortages.

Improved inventory management with optimized safety stock levels.

Enhanced communication and coordination between PPIC, SCM, and suppliers.

Constant communication and monitoring are crucial to address unforeseen changes in demand or
production plans.

4.2.5. Basic Supplier Production Process:

The suppliers follow a 7-stage process for A-class and C-class materials:

Stage 1: Raw Material Stage: Suppliers receive the orders and procure raw materials.

Stage 2: Cutting:

 Laser: Used for 100% accuracy with lower material thickness.

 Plasma/Oxy: Used for higher material thickness (12-20mm).

Stage 3: Initial Assembly and Inspection:

 Child parts are combined with temporary welds (“tacking”).

 Initial quality inspection is conducted.

Stage 4: Full Welding:

 Parts are fully welded on manipulators or fixtures.

Stage 5: Finishing and Inspection:

 Parts are cleaned and finished.

 Final quality inspection is conducted.

Stage 6: (Optional): Machining (if needed):

 Specific parts may undergo additional machining operations.

Stage 7: Painting and Coating:

 Parts are treated with shot blasting, primer, and final Color coating.

4.2.6. Inventory Management:

  Inventory levels are monitored to avoid excess stock and ensure efficient space utilization.
 Non-moving stock is not procured, and purchasing strictly follows production
requirements.
 Supplier performance regarding schedule adherence is monitored.

4.2.7 Key Points for SCM:

 Minimize excess stock: Avoid overstocking to optimize storage space and capital.
 Manage non-moving stock: Identify and stop procuring items with low demand.
 Procure based on requirements: Align purchases with actual production needs.
 Optimize inventory management: Efficiently manage stock levels for cost-effectiveness.
 Monitor supplier performance: Track suppliers' adherence to schedules for reliable
production planning.

4.3 LOGISTIC PROCESS/ACTIVITES

4.3.1 Understanding of Logistics:

Manufacturing logistics is the process of organizing and managing the transportation and storage
of materials and finished products within a manufacturing plant. This process includes many
activities, like moving raw materials to production lines, finished products to warehouses, and
goods to customers. It also includes planning for when the factory is closed, managing inventory
levels, and meeting production schedules. While last-mile and short-haul transportation is a small
part of the manufacturing logistics process, it is an essential component of keeping manufacturing
plants running smoothly.

Definition:

Logistics is the process of planning, implementing, and controlling the efficient movement and
storage of goods, services, and related information between the point of origin and the point of
consumption in order to meet the requirements of customers or end-users. It involves the
coordination of various activities such as transportation, inventory management, warehousing,
and distribution.
4.3.2 Types of Logistics:

The construction equipment industry relies on a well-oiled logistics machine to ensure a smooth
flow of materials, finished equipment, and potentially even the return of used equipment. Various
types of logistics play crucial roles in ensuring the efficient flow of materials, components, and
finished products throughout the supply chain. Here are some key types of logistics commonly
observed in this industry:

1: Inbound Logistics:

Is one of the primary processes of logistics, concentrating on purchasing and arranging the
inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing
or assembly plants, warehouses, or retail stores.

Effective inbound logistics practices focus on optimizing sourcing strategies, coordinating

supplier deliveries, and managing inventory levels to ensure uninterrupted production processes
and minimize lead times.

2: Outbound Logistics:

Outbound logistics encompasses the distribution of finished products from manufacturing

facilities to customers, dealers, or distribution centres. In the construction equipment industry,
outbound logistics may involve the transportation of heavy machinery, vehicles, and spare parts
to construction sites, dealerships, or rental locations.

Efficient outbound logistics operations depend on strategic transportation planning, route

optimization, and delivery scheduling to meet customer demand, minimize transportation costs,
and ensure timely delivery of equipment.

3: Reverse Logistics:

Reverse logistics involves the management of product returns, repairs, and recycling processes.
In the construction equipment industry, reverse logistics may include handling warranty claims,
repairing damaged equipment, and recycling or disposing of obsolete or end-of-life machinery.
Effective reverse logistics practices focus on streamlining return processes, implementing repair
and refurbishment programs, and promoting sustainable disposal methods to minimize waste and
environmental impact.

4.3.4 Key Components of Logistics.

Transportation

Inventory
Information
Control

Logistical
Warehousing Components Packaging
of SCM

1. Information: Information aids in tracking the status of items as well as all supply chain
processes, informing business decisions at each stage.
2. Warehousing: Efficiently storing raw materials (steel, engines, hydraulic components),
work-in-progress equipment (partially assembled machines), and finished construction
equipment. Construction equipment warehouses often require special features to
accommodate bulky and heavy items.
3. Packaging: Protecting equipment during transportation and storage from damage caused
by weather, handling, or shifting during transit. Packaging solutions need to be robust
enough to withstand the weight and potential impacts these machines can experience.
4. Transportation: Moving materials and equipment throughout the supply chain. This can
involve trucks, rail, and even ocean freight for overseas suppliers. Construction
equipment often requires specialized transportation due to size and weight limitations on
public roads.
5. Inventory control: Inventory control incorporates storage and warehousing techniques to
optimise the types and amount of stock held, as well as where it is held. Inventory
management formulas can help businesses better predict demand.
4.3.5 Modes of Transportation

The world of logistics relies on four main modes of transportation, each with its own strengths
and weaknesses:

1. Road Transportation: The king of flexibility, offering door-to-door delivery but

vulnerable to weather and traffic.

 Pros: Cost-effective, good tracking, accessible

 Cons: Delays due to weather/traffic, size/weight limitations

2. Sea Transportation: The economical giant, ideal for massive cargo over long distances,
but slow and requires additional transport for final delivery.

 Pros: Unbeatable capacity, cost-effective for long distances, eco-friendly

 Cons: Slowest option, fixed schedules, limited tracking

3. Rail Transportation: The reliable workhorse, efficient for large volumes and long
distances, but lacks flexibility and can be slower than road transport.

 Pros: High capacity, good for long distances, environmentally friendly,

regulations ensure safety
 Cons: Reliant on other modes for final delivery, needs good infrastructure, slower
than road transport for short distances

4. Air Transportation: The speed demon, perfect for urgent deliveries, but comes with a
hefty price tag and limitations on cargo size and type.

 Pros: Fastest option, reliable schedules, high security

 Cons: Most expensive, limited capacity, cargo restrictions

4.3.6 General Documents in Logistics

 Road: Lorry Receipt (LR) or Goods Receipt (GR) - This is given by the carrier when you
give them goods to transport by road.
 Rail: Railway Receipt (RR) - This is the receipt for goods shipped by train.
  Sea: Bill of Lading (BL) - This document serves as a receipt and contract for transporting
goods by sea.
 Air: Airway Bill (AWB) - This receipt acts as a proof of contract for air cargo.

4.3.7 Logistic

Outbound logistics, is a crucial and main component of the supply chain that makes it easier for
goods to be transported from the business source to the client.

OUTBOUND LOGISTICS

OUTBOUND PACKAGING
SHIPMENT INVOICING E-WAY BILL
DELIVERY STANDARD

MANAGEMENT

SGST CGST IGST

Exports: TRANSPORTATION

BOE, BL, Packaging list, Check

List

Outbound Delivery: Outbound delivery is the procedure of transferring orders from a company's
warehouse or fulfillment center to their ultimate destination, typically the end customer. This
logistical operation involves organized processing, packaging, and shipment of goods, ensuring
timely and efficient delivery that meets the demands and expectations of customers.
Invoicing: In the context of local and international selling transactions, an invoice is the formal
documentation that the seller provides to the buyer. The invoice, which serves as a thorough
documentation of the transaction, starts the payment process by describing the terms, prices, and
quantities that were agreed upon as well as any relevant details regarding the products or services
that were traded between the parties.
E-way Bill: An e-way bill, also called an electronic way bill, is a mandatory document for
transporting goods of a certain value within India. This document is generated electronically
using the GST Portal. Notably, an e-way bill is issued only when the value of the transported
goods reaches or exceeds Rs. 50,000. Besides facilitating the transportation of goods, an e-way
bill serves as a mechanism for paying applicable taxes, including Integrated Goods and Services
Tax (IGST), Central Goods and Services Tax (CGST), and State Goods and Services Tax
(SGST).
Packaging Standard Management refers to a structured process designed to uphold efficiency
and uniformity in packaging design and production across the entire supply chain. This process
encompasses the creation, execution, and supervision of policies and guidelines governing
packaging practices. The objective of Packaging Standard Management is to ensure adherence to
predefined standards through meticulous implementation and oversight, thereby facilitating
seamless handling and distribution of products within the supply chain network.
Other Documents:
Packaging List: It is the form that describes the goods to be exported including quantity, box
weight, dimension, price, and related shipment information.
Check List: The list covers valuable information for traders like Bill of Entry Date, HS Code,
Date of Shipment, Product Description, Indian import port name, value, and quantity of the
product.
Bill of Entry: Upon the arrival of imported goods, importers or customs clearance agents are
required to submit a formal legal document known as a Bill of Entry to the customs
department of the originating country. This document is a crucial component of the customs
clearance process, serving to verify the legality of imported goods and provide assurance to
authorities regarding the absence of illicit products. Additionally, the Bill of Entry facilitates
the accurate assessment and imposition of taxes by customs officials, thereby aiding in
preventing instances of misconduct or duty evasion.
Bill of Landing: A Bill of Lading is a formal agreement between the seller and the shipping
company that includes information about the goods sold, their quantity, and the recipient's
address. It primarily serves a logistical function, focusing on the physical attributes of the
goods. This document is advantageous in resolving disputes with buyers, shipping companies,
or customs authorities. It is typically generated when the goods are being loaded onto a vessel
for international transport.
4.4 DATA ANALYSIS ALONG WITH INTERPRETATION

On the basis of, conversations and observations with office staff members of their individual
activities, the data interpretation presented below was developed.

1- How does HCE manage its transportation logistics across India (in %)?

 HCE is having 70+ Dealers office across India,

 Almost 90% shipments are Ex work Basis & Transportation been taken care by dealers
only
 Remaining 5-10% transportation is done by HCEI for Depot movement based on
requirements

2- What documents are required for domestic and export shipments?

Sr. No Documents Required Domestic Export
1 Invoice  
2 Packaging List  
3 Bills of Landing  
4 Shipping Bills  
5 E-Way Bill  
6 Fema Declaration  
7 Export Value Declaration  
8 Scomet Letter  
9 Certificate of Origin  

Invoice: It is a commercial document issued by a seller to a buyer relating to a sale

transaction and indicating the products, quantities, and agreed-upon prices for products or
services the seller had provided the buyer.
Packing List: A packing list refers to the form which describes the goods to be exported,
including quantity, box, weight, dimension, price, and related shipment information.
Bill of Lading: A bill of lading (BL or BOL) is a legal document issued by a carrier
(Transportation Company) to a shipper that details the type, quantity, and destination of the
goods being carried. A bill of lading also serves as a shipment receipt when the carrier
delivers the goods at a predetermined destination.
Shipping Bill: It is a bill for shipment needed for custom clearance while you are
exporting products.
E- Way bill: An e-way bill is a permit needed for inter-state and intra-state transportation
of goods worth more than Rs. 50,000. It contains details of the goods, the consignor, the
recipient and the transporter.
FEMA Declaration: FEMA Declaration is a document required under India's FEMA
(Foreign Exchange Management Act), declaring foreign exchange transactions,
investments, and assets to ensure compliance with foreign exchange regulations.
Export Declaration: An export declaration form is a document that exporters submit at the
port from where the goods are shipped to the importer. This form provides crucial
information about shipment like content, type, value and number.
SCOMET Letter: The SCOMET Letter is a document issued by India's Directorate
General of Foreign Trade (DGFT) regarding the export, import, transfer, or use of sensitive
items like chemicals, organisms, materials, equipment, and technologies, regulated under
the Foreign Trade Act and EXIM Policy, typically containing authorization and compliance
details.
Certificate of Origin: A Certificate of Origin (CO) is an important international trade
document that certifies that goods in a particular export shipment are wholly obtained,
produced, manufactured or processed in a particular country
3- What are Inco terms (International Commercial Terms)?

Sr. Categories Terms Description

No
1 E term EXW The only term where the seller/ exporter makes the good
available at his own premises to the buyer/ importer.
2 F terms FCA, FAS Terms where the seller/ exporter is responsible to deliver the
and FOB goods to a carrier named by the buyer
3 C terms CFR, CIF, Terms where the seller/ exporter/ manufacturer are
CPT and responsible for contracting and paying for carriage of the
CIP goods, but not responsible for additional costs or risk of loss
or damage to the goods once they have been shipped.
4 D terms DAF, DES, Terms where the seller/exporter/manufacturer is responsible
DEQ, DDU for all costs and risks associated with bringing the goods to
and DDP the named place of destination.

Incoterms are contractual terms agreed upon by both buyers and sellers in international
transactions. These rules are universally recognized by governments and legal entities worldwide.
Familiarity with Incoterms is essential in international trade as they outline the responsibilities,
expenses, and risks assigned to each party. Additionally, Incoterms specify the point at which the
seller's liabilities and risks are transferred to the buyer.

4-What is the process flow of outbound logistics?

Customer Quotation Target Price

RFQ Negotiation Order Processing
Request Evaluation Negotiation

Payment &
Delivery & Pick-Up & Shipment Packing &
Documentation Documentation
Installation Transportation Booking Labelling
Clearance
1. Customer Request: The process starts with a user request, likely through email, to ship a
machine to a particular destination.
2. RFQ: You send RFQ to multiple LSPs (Logistic Service Providers), outlining details like
shipment origin, destination, cargo weight (20 tons), and desired delivery timeframe.
3. Quotation Evaluation: You receive quotes from 3-4 LSPs. The one with the lowest
initial price is designated as L1 (Lead 1).
4. Negotiation: Negotiations with L1 may occur to improve pricing or service terms.
5. Target Price Negotiation: If two LSPs offer the same price, you might introduce a target
price and select the one willing to meet it.
6. Order Processing: This involves verifying the order details, checking stock availability,
and preparing an invoice for the customer.
7. Packing & Labelling: The machine needs to be securely packed to prevent damage
during transport. Marking with proper labels ensures correct identification and handling.
8. Documentation: Preparing documents like packing lists, commercial invoices, and
potentially customs clearance documents (if applicable).
9. Shipment Booking: Once an LSP is selected, the shipment is booked, and a pick-up date
is confirmed.
10. Pick-Up & Transportation: The LSP picks up the machine from your location and
transports it to the final destination using the chosen mode (road, rail, etc.).
11. Delivery & Installation (Optional): Depending on the agreement with the customer, the
LSP might also handle delivery and installation of the machine at the destination.
12. Payment & Documentation Clearance: You settle payment with the LSP after
successful delivery, and they handle any necessary documentation for customs clearance
(if applicable).
Findings & Conclusion
5.1 FINDINGS

Understanding the Concept and Importance of Material Planning:

1. Material planning plays a pivotal role in ensuring the timely availability, quality
assurance, and cost-effectiveness of materials required for production.
2. The material planning process encompasses various phases such as part identification,
supplier selection, RFQ process, design validation, vendor evaluation, drawing approval,
and PO creation, among others.
3. Efficient material planning leads to cost optimization, production efficiency, quality
assurance, inventory management, and effective supplier relationship management.

Analysing the Role of Logistics in Supply Chain Management:

1. Logistics is crucial in managing the efficient movement and storage of goods, services,
and information across the supply chain.
2. In the construction equipment industry, logistics involves inbound, outbound, and reverse
logistics, focusing on transportation, warehousing, inventory control, packaging, and
information management.
3. Effective logistics practices contribute to cost reduction, improved customer satisfaction,
competitive advantage, and overall supply chain performance enhancement.

Evaluating the Relationship Between Material Planning and Logistic Activities:

1. Material planning and logistics are closely interlinked within the supply chain
management framework.
2. Material planning ensures the availability of materials for production, while logistics
facilitates the movement of these materials from suppliers to production facilities and
ultimately to customers.
3. The coordination between material planning and logistics is critical for maintaining
production schedules, minimizing costs, and meeting customer demands.
4.

Significance of Continuous Improvement and Adaptation:

 1. Continuous improvement and adaptation are essential in both material planning and
logistics.
2. Feedback loops, performance metrics, and stakeholder engagements drive process
refinement, innovation, and agility.
3. Regular reviews and improvements foster a culture of continuous improvement, ensuring
competitiveness and efficiency in manufacturing operations.

Impact of Effective Supply Chain Management:

1. Effective supply chain management, including material planning and logistics, leads to
cost optimization, improved customer satisfaction, streamlined operations, and sustainable
business growth.
2. It enhances the company's ability to respond to market changes, improve product
availability, and maintain high-quality standards.

5.2 CONSLUSION.

In conclusion, this project report offers a thorough analysis of the direct material planning and
logistics activities within the confines of our investigation. Through meticulous assessment and
evaluation, several significant findings have surfaced, shedding light on various facets of the
supply chain management process.

Initially, inquiries were directed towards employees regarding the process. By discerning
inefficiencies and weaknesses, a foundation for potential enhancements has been established,
promising increased operational effectiveness and cost savings.

Moreover, our scrutiny of demand forecasting accuracy underscores the importance of robust
forecasting methodologies in optimizing inventory levels and minimizing stockouts. The
disparities between forecasted and actual demand underscore the necessity for continuous
refinement and adaptation of forecasting techniques to harmonize with dynamic market
conditions.
Furthermore, the evaluation of inventory management practices exposes avenues for optimization
in inventory levels, turnover rates, and associated costs. Strategic inventory management tactics
can mitigate risks while ensuring adequate stock availability to accommodate fluctuating
demand.

Additionally, our examination of supplier performance underscores the critical role of reliable
and responsive suppliers in sustaining an efficient supply chain. Augmenting supplier
relationships and streamlining communication channels can bolster supply chain resilience and
diminish disruptions.

Lastly, our analysis of logistics efficiency identifies opportunities for optimization in

transportation modes, routes, and associated costs. Enhancing logistics processes can yield
reduced lead times, diminished transportation costs, and heightened customer satisfaction.

In summary, this project underscores the pivotal importance of effective material planning and
logistics activities in propelling operational excellence and sustaining competitiveness in today's
dynamic business milieu.

5.3 LIMITATIONS OF PROJECT

 The main limitation of the project is the collection of information because many of the
information were confidential.
 I gained industry experience in Material Planning & Logistic through a university-
sponsored internship. However, the internship only lasted 12 weeks (equivalent to three
months), which limited my full understanding of the industry’s complexities.
Observations & Learning
6.1 OBSERVATIONS AND LEARNINGS FROM THE PROJECT

I discovered that the workplace culture at HD Hyundai Construction Equipment Pvt. Ltd. during
my three months of internship has positively impacted my opinion of a large corporation. HCE,
one of the well-known companies, strongly encourages healthy competition among its employees
to foster the development of fresh ideas.

The organization practice has triggered my passion to drive my role by making more effort to
learn new thing and to strive to complete task and assignments given. Furthermore, I have also
learned from time management as I have been assigned tasks and given a period of time to
complete the task.

The company tends to work in a team to perform a task or project. The team members develop
positive relationships with one another and support one another in producing high-quality work
by putting the needs of the company ahead of personal success. The skills I acquired throughout
my industrial training are actually quite helpful to me in the future to face challenges in a
working environment. Throughout the industrial training, I observed several things that are
important:

1) The benefits of networking: I developed my communication and relationship-building skills

with the coworkers during my internship. Overall, this procedure helped me develop my
professional network and emphasized the importance of creating these connections.

2) Working as a team: Teamwork brings people together and motivates them to rely on one
another to get things done. Teamwork also makes progress easier and allows the group to
overcome obstacles that would have stalled an individual. Without teamwork, none of that would
be possible.

3) Understanding workplace culture: Culture influences communication, and as an intern, I

learned that every company or organization has its own culture. It’s essential to observe others
and learn how they engage and interact with co-workers, or help them with projects and tasks. I
quickly learned that whenever something is unclear for me, or I don’t understand, it’s fine to ask
for clarification.
4) Value of enthusiasm: As an intern, I learned how important it is to be excited about learning
new things, open to asking for additional work, and interested to learn and ask questions. This
approach will demonstrate your enthusiasm for helping and enjoyment of teamwork. Curious and
enthusiastic individuals also get more out of their work as an intern, which leads to numerous
chances.

5) Benefits of taking feedback: Asking for and receiving professional feedback is very
important. It is essential to take note of both the positive and negative points for the future, so
you can grow and excel in your career.

6) Value added skills: I understood that only having theoretical knowledge about the concepts
is not enough to sustain in the long run. Skills like working in MS Excel, Business Intelligence
software’s like SAP, GIS, HISRM, analytical skills, time management etc. are very necessary in
the business world.

6.2 My learnings from the project during my internship were:

1) Putting knowledge and skills into practice: My knowledge of Material Planning, logistics
and supply chain theories was transformed into a series of practical techniques and skills that I
can now implement in real-life business scenarios, all thanks to my internship.

2) Technical Skills: I developed my technical skills in MS Excel, SAP, HISRM and GIS during
my internship period.

3) Market Study: While working I had done a market study by visiting different supplier
understanding their process flow in assembling and producing different parts procured by the
company for their manufacturing.
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