Summer Internship Project Report

On supply Chain management& IOT

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Table of contents

Chapter Contents Page no.

PREFACE
ACKNOWLEDGMENT
DECLARATION

Executive Summary

1 Introduction to study
2 Industry profile
 Introduction of IOT
 Structure of IOT
 IoT business in India.
 Future of IOT in INDIA.
3 Company profile
 Introduction
 Key business
 Key management
 SWOT analysis

4
5 conclusion

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 PREFACE

In the present fast moving globalize economy, only theoretical knowledge is not sufficient
for an individual to perform efficiently to bridge the gap between theory and practical.

The students required to undergo 7 weeks training in any organization in subjects like
marketing, finance, human resource or information technology.

Summer internship program is a prelude to the final placements that the students will be
getting. It is during these 7 weeks of exposure to the industry that the students can make a
mark of challenging work, knowledge and ethics on the host organization.

Summer internship program would also be a great learning experience since it enables the
students to apply theory to practice and observe and learn the current trends in the market.

So, to have a practical exposure, I have been placed on “XLIT PRIVATE LTD.” for my
summer internship program as my specialization is Operation sand this company especially
deals with IOT’s

I Abhishek Kumar Rai , a student of first year M.B.A,, did my project work in “Xlit
private ltd.’ on the topic “Supply chain management” &IOT.

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 ACKNOWLEDGMENT

I am heartily thankful to all the persons who spared their valuable time and helped me a lot
in preparation of this project report. There are many people behind making of this report,
without their help and guidance; this report would never be made possible.

First, I would like to express my thanks to Mr. Ravi Sir (manager of XLIT PRIVATE
LTD) and our institution for giving me this golden opportunity. I am greatly thankful to my
project guide Professor

K Anbumani Sir for giving me proper guidance and cooperation for making this report
more meaningful.

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 DECLARATION

I, the undersigned Abhishek Kumar Rai a student of MBA declare that the project work
presented in this Report is my own work & has been carried out under the supervision of
PROF. K Anbumani Sir of Institute Of Co-operative & Corporate Management Research
& Training , Lucknow.

This project has not been previously submitted to any other university for my examination.

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 EXECUTIVE SUMMARY

MBA is a stepping-stone to the management carrier and to develop good manager it is

necessary that the theoretical must be supplemented with exposure to the real environment.
Theoretical knowledge just provides the base and it's not sufficient to produce a good
manager that' s why practical knowledge is needed.

In accordance with the requirement of MBA course I had summer training project in IOT
of XLIT on the topic of ‘supply chain management’IOT Buisness of XLIT.

As in modern day the globalization affects the living standard of society.We need a batter
control over our equipment so that we can easily manger those smoothly. The IOT play an
important role in controlling and managing over these equipments. With the help of IOT
the daily life of human become easy. For example with the help of IoT technology we can
control and monitor our AC, Energy meter and other equipments direct with our smart
phone through internet.

This report gives an overview of IOT product and services offer by XLIT private ltd and
their supply chain process that how their IOT services help in building the cities
smart.Xlit used the device of ‘MODIO (A SWIDEN COMPANY)’ and install inthat
equipments to which the user wants to control or monitor through their smart phone.XLIT
AB in Collaboration with MODIO AB Sweden is the Global Specialist in IoT(Internet of
the things) Solutions for Industries, Buildings & Solar through secured, automated and
continuous updated of embedded and IoT systems.XLIT offer a comprehensive portfolio of
high performance IoT modules, software and related service. IoT system is built on the
foundation of IT-security, openness and continuous updating of system and hardware
making it possible to interact and integrate with other systems. XLIT offer solutionsas per
customers tailored needson IoT based for Energy Monitoring, Industry IoT Solutions
(Energy & Sustainability / Process Waste Reduction), Solar Design and Implementation.
XLIT enterprise-grade hardware, connectivity and platforms transform businesses through
the power of IoT. We reduce the complexity of connecting ‘things to apps’ with a
comprehensive platform for collecting, managing and analyzing critical device data. Xlit
IoT platform is available as a subscription-based cloud service or on premise installation.

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 INTRODUCTION

The Internet Of Things (IOT) IS a system of interrelated computing devices, mechanical

and digital machines, objects, animals or people that are provided with
unique identifiers (UIDs) and the ability to transfer data over a network without requiring
human-to-human or human-to-computer interaction.[1][2][3][4]

The definition of the Internet of Things has evolved due to the convergence of multiple
technologies, real-time analytics, machine learning, commodity sensors, and embedded
systems.[5] Traditional fields of embedded systems, wireless sensor networks, control
systems, automation (including home and building automation), and others all contribute to
enabling the Internet of Things. In the consumer market, IoT technology is most
synonymous with products pertaining to the concept of the "smart home", covering devices
and appliances (such as lighting fixtures, thermostats, home security systems and cameras,
and other home appliances) that support one or more common ecosystems, and can be
controlled via devices associated with that ecosystem, such as smartphones and smart
speakers.

There are a number of serious concerns about dangers in the growth of IoT, especially in
the areas of privacy and security; and consequently industry and governmental moves to
begin to address these.

History of IoT

Kevin Ashton, co-founder of the Auto-ID Center at MIT, first mentioned the internet of
things in a presentation he made to Procter & Gamble (P&G) in 1999. Wanting to bring
radio frequency ID (RFID) to the attention of P&G's senior management, Ashton called his
presentation "Internet of Things" to incorporate the cool new trend of 1999: the internet.
MIT professor Neil Gershenfeld's book, When Things Start to Think, also appearing in
1999, didn't use the exact term but provided a clear vision of where IoT was headed.

IoT has evolved from the convergence of wireless technologies, microelectromechanical

systems (MEMS), microservices and the internet. The convergence has helped tear down
the silos between operational technology (OT) and information technology (IT), enabling
unstructured machine-generated data to be analyzed for insights to drive improvements.

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Although Ashton's was the first mention of the internet of things, the idea of connected
devices has been around since the 1970s, under the monikers embedded
internet and pervasive computing.

The first internet appliance, for example, was a Coke machine at Carnegie Mellon
University in the early 1980s. Using the web, programmers could check the status of the
machine and determine whether there would be a cold drink awaiting them, should they
decide to make the trip to the machine.

IoT evolved from machine-to-machine (M2M) communication, i.e., machines connecting

to each other via a network without human interaction. M2M refers to connecting a device
to the cloud, managing it and collecting data.

Taking M2M to the next level, IoT is a sensor network of billions of smart devices that
connect people, systems and other applications to collect and share data. As its foundation,
M2M offers the connectivity that enables IoT.

The internet of things is also a natural extension of SCADA (supervisory control and data
acquisition), a category of software application program for process control, the gathering
of data in real time from remote locations to control equipment and conditions. SCADA
systems include hardware and software components. The hardware gathers and feeds data
into a computer that has SCADA software installed, where it is then processed and
presented it in a timely manner. The evolution of SCADA is such that late-generation
SCADA systems developed into first-generation IoT systems.

The concept of the IoT ecosystem, however, didn't really come into its own until the
middle of 2010 when, in part, the government of China said it would make IoT a strategic
priority in its five-year plan.

How IoT works

An IoT ecosystem consists of web-enabled smart devices that use embedded processors,
sensors and communication hardware to collect, send and act on data they acquire from
their environments. IoT devices share the sensor data they collect by connecting to an IoT

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gateway or other edge device where data is either sent to the cloud to be analyzed or
analyzed locally. Sometimes, these devices communicate with other related devices and act
on the information they get from one another. The devices do most of the work without
human intervention, although people can interact with the devices -- for instance, to set
them up, give them instructions or access the data.

The connectivity, networking and communication protocols used with these web-enabled
devices largely depend on the specific IoT applications deployed.

Why IOT is important

The internet of things helps people live and work smarter as well as gain complete control
over their lives. In addition to offering smart devices to automate homes, IoT is essential to
business. IoT provides businesses with a real-time look into how their companies’ systems
really work, delivering insights into everything from the performance of machines to
supply chain and logistics operations.

IoT enables companies to automate processes and reduce labor costs. It also cuts down on
waste and improves service delivery, making it less expensive to manufacture and deliver
goods as well as offering transparency into customer transactions.

IoT touches every industry, including healthcare, finance, retail and manufacturing. Smart
cities help citizens reduce waste and energy consumption and connected sensors are even
used in farming to help monitor crop and cattle yields and predict growth patterns.

As such, IoT is one of the most important technologies of everyday life and it will continue
to pick up steam as more businesses realize the potential of connected devices to keep them
competitive.

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Benefits of IoT

The internet of things offers a number of benefits to organizations, enabling them to:

 Monitor their overall business processes;

 Improve the customer experience;
 Save time and money;
 Enhance employee productivity;
 Integrate and adapt business models;
 Make better business decisions; and
 Generate more revenue.

IoT encourages companies to rethink the ways they approach their businesses,
industries and markets and gives them the tools to improve their business strategies.

Pros and cons of IoT

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Some of the advantages of IoT include:

 Ability to access information from anywhere at any time on any device;

 Improved communication between connected electronic devices;
 Transferring data packets over a connected network saves time and money;
 Automating tasks helps improve the quality of a business’ services and reduces the
need for human intervention.

Some disadvantages of IoT include:

 As the number of connected devices increases and more information is shared

between devices, the potential that a hacker could steal confidential information
also increases;
 Enterprises may eventually have to deal with massive numbers -- maybe even
millions -- of IoT devices and collecting and managing the data from all those
devices will be challenging.
 If there’s a bug in the system, it’s likely that every connected device will become
corrupted;
 Since there’s no international standard of compatibility for IoT, it’s difficult for
devices from different manufacturers to communicate with each other.

IoT standards and frameworks

There are several emerging IoT standards, including:

 6LoWPAN (IPv6 over Low -Power Wireless Personal Area Networks), an open
standard defined by the Internet Engineering Task Force (IETF). The 6LoWPAN
standard enables any low-power radio to communicate to the internet, including
804.15.4, Bluetooth Low Energy and Z-Wave (for home automation).
 ZigBee0, a low-power, low data-rate wireless network used mainly in industrial
settings. ZigBee is based on based the IEEE 802.15.4 standard. The ZigBee
Alliance created Dotdot, the universal language for IoT that enables smart objects
to work securely on any network and understand each other.

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  LiteOS, a Unix-like operating system for wireless sensor networks. LiteOS supports
smartphones, wearables, intelligent manufacturing applications, smart homes and
Internet of Vehicles (IoV). The operating system also serves as a smart device
development platform.
 OneM2M, a machine-to-machine service layer that can be embedded in software
and hardware to connect devices. The global standardization body, OneM2M, was
created to develop reusable standards to enable IoT applications across different
verticals to communicate.
 DDS (Data Distribution Service) was developed by the Object Management Group
(OMG) and is an IoT standard for real-time, scalable and high-performance
machine-to-machine communication.
 AMQP (Advanced Message Queuing Protocol), an open source published standard
for asynchronous messaging by wire. AMQP enables encrypted and interoperable
messaging between organizations and applications. The protocol is used
in client/server messaging and in IoT device management.
 CoAP (Constrained Application Protocol), a protocol designed by the IETF that
specifies how low-power compute-constrained devices can operate in the internet of
things.
 LoRaWAN (Long Range Wide Area Network), a protocol for wide area networks,
it’s designed to support huge networks, such as smart cities, with millions of low-
power devices.

IoT frameworks include:

 AWS IoT, a cloud platform for IoT released by Amazon. This framework is
designed to enable smart devices to easily connect and securely interact with the
AWS cloud and other connected devices.
 ARM Mbed IoT, a platform to develop apps for the IoT based on ARM
microcontrollers. The goal of the ARM Mbed IoT platform is to provide a scalable,
connected and secure environment for IoT devices by integrating Mbed tools and
services.
 Microsoft’s Azure IoT Suite, a platform that consists of a set of services that
enables users to interact with and receive data from their IoT devices as well as
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 perform various operations over data, such as multidimensional analysis,
transformation and aggregation, and visualize those operations in a way that’s
suitable for business.
 Google’s Brillo/Weave, a platform for the rapid implementation of IoT
applications. The platform consists of two main backbones: Brillo, an android-
based operating system for the development of embedded low power devices; and
Weave, IoT-oriented communication protocol that serves as the communication
language between the device and the cloud.
 Calvin, an open source IoT platform released by Ericsson designed for building and
managing distributed applications that enable devices talk to each other. Calvin
includes a development framework for application developers as well as a runtime
environment for handling the running application.

Consumer and enterprise IoT applications

There are numerous real-world applications of the internet of things, ranging from
consumer IoT and enterprise IoT to manufacturing and industrial IoT (IIoT). IoT
applications span numerous verticals, including automotive, telecom and energy.

In the consumer segment, for example, smart homes that are equipped with smart
thermostats, smart appliances and connected heating, lighting and electronic devices can be
controlled remotely via computers and smartphones.

Wearable devices with sensors and software can collect and analyze user data, sending
messages to other technologies about the users with the aim of making users' lives easier
and more comfortable. Wearable devices are also used for public safety -- for example,
improving first responders' response times during emergencies by providing optimized
routes to a location or by tracking construction workers' or firefighters' vital signs at life-
threatening sites.

In healthcare, IoT offers many benefits, including the ability to monitor patients more
closely to use the data that's generated and analyze it. Hospitals often use IoT systems to
complete tasks such as inventory management, for both pharmaceuticals and medical
instruments.
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Smart buildings can, for instance, reduce energy costs using sensors that detect how many
occupants are in a room. The temperature can adjust automatically -- for example, turning
the air conditioner on if sensors detect a conference room is full or turning the heat down if
everyone in the office has gone home.

In agriculture, IoT-based smart farming systems can help monitor, for instance, light,
temperature, humidity and soil moisture of crop fields using connected sensors. IoT is also
instrumental in automating irrigation systems.

In a smart city, IoT sensors and deployments, such as smart streetlights and smart meters,
can help alleviate traffic, conserve energy, monitor and address environmental concerns
and improve sanitation.

IoT security and privacy issues

The internet of things connects billions of devices to the internet and involves the use of
billions of data points, all of which need to be secured. Due to its expanded attack
surface, IoT security and IoT privacy are cited as major concerns.

In 2016, one of the most notorious recent IoT attacks was Mirai, a botnet that infiltrated
domain name server provider Dyn and took down many websites for an extended period of
time in one of the biggest distributed denial-of-service (DDoS) attacks ever seen. Attackers
gained access to the network by exploiting poorly secured IoT devices.

Because IoT devices are closely connected, all a hacker has to do is exploit one
vulnerability to manipulate all the data, rendering it unusable. Manufacturers that don't
update their devices regularly -- or at all -- leave them vulnerable to cybercriminals.

Additionally, connected devices often ask users to input their personal information,
including names, ages, addresses, phone numbers and even social media accounts --
information that's invaluable to hackers.

However, hackers aren't the only threat to the internet of things; privacy is another major
concern for IoT users. For instance, companies that make and distribute consumer IoT
devices could use those devices to obtain and sell users' personal data.
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Beyond leaking personal data, IoT poses a risk to critical infrastructure, including
electricity, transportation and financial services.

The future of IoT

There is no shortage of IoT market estimations. For example, a few include:

 Bain & Company expects annual IoT revenue of hardware and software to exceed
$450 billion by 2020.
 McKinsey & Company estimates IoT will have an $11.1 trillion impact by 2025.
 IHS Markit believes the number of connected IoT devices will increase 12%
annually to reach 125 billion in 2030.
 Gartner assesses that 20.8 billion connected things will be in use by 2020, with total
spend on IoT devices and services to reach $3.7 trillion in 2018.

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 SUPPLY CHAIN MANAGEMENT

Supply chain management involves collaboration between firms to connect suppliers,

customers, and other partners as a means of boosting efficiency and producing value for
the end consumer.

In simple terms, logistics can be seen as a link between the manufacturing and marketing
operations of a company. The traditional organizations used to think of them separately,
but there is a definite value addition in integrating the two due to the interdependence and
feedback channel between the two.

The level of coordination required to minimize the overall cost for the end consumer gets
tougher to achieve as the number of participants in a supply chain increase, as an extremely
efficient flow of material and information is required for optimization.

Logistics cover the following broad functional areas: network design,

transportation and inventory management.

Manufacturing plants, warehouses, stores etc. are all facilities which form key components
in the network design. Transportation: the cost and consistency (reliability) required out of
the transportation network determines the type and mode of the movement of goods and
also affects the inventory.

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Basic concepts of Logistics and SCM

Inventory Planning

Organizations want to minimize the inventory levels due to its almost linear relationship
with the cost. Yet if the demand is forecasted accurately, there would ideally be no need for
inventory and the goods will move seamlessly from warehouses to customers.

That would have been awesome, but it is deep into the ideal world zone. In the real world,
the forecasted numbers can only take you so far and some inventory has to be maintained
to satiate any surges in demand; the cost of unhappy consumers who are not serviced is
often huge, and is immeasurable in most cases.

Yet overstocks lead to increase in working capital requirements, insurance costs and
blocked resources which could have been productive someplace else.

Making a business forecast has largely been a gut-based process, but is changing rapidly in
the era of data-based decision making. The forecast depends on the historical baseline for
sales, seasonality (soft drinks have higher sales volume in May), recent trends (Samsung is
losing out to competitors when it comes to phones, a declining trend), business cycles
(economies go through expansion and contraction every few years), promotional offers (up
to 50% off can drive the average fashionista mad) etc.

Transportation

The kind of transportation employed by an organization is a strategic decision (it usually

accounts for around 1/3rdof the total logistics cost) based on the required level of risk
exposure, customer service profiles, geographic area covered etc. Truck shipments take
more time for delivery compared to air transport (customers with relaxed turnaround
times); is cheaper but necessitates maintenance of higher inventory levels.

Transportation serves the purpose of not just product movement, but storage as well (not
very intuitive). Time spent for delivery means saved time for warehousing, and many times

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the cost to offload and reload shipments can be greater than the cost of letting the goods
stay in the transportation vehicles itself.

Two basic thumb rules apply for transportation decisions: truck load (TL) shipments are
better than less-than-truckload (LTL) shipments as storage space is a perishable
commodity (just like a commercial airline does not want to fly with empty seats), and the
cost per kilometer decreases as the distance increases (two 500 km shipments is usually
more expensive than a single 1000 km shipment).

The factors which determine the economies of transportation decisions include but are not
limited to: distance between the starting and destination points, and density (higher density
products take less space — space constraints outweigh weight constraints by a huge
margin), stow ability (spherical packaging will lead to more empty spaces compared to
cubical) and volume of the goods. Different modes of transport serve different strategic
ends (rail, road, air, water etc).

FlipKart has eKart for its logistical operations and warehousing, whereas smaller e-
commerce players generally outsource their operations to specialized logistics players such
BlueDart, DHL and now Delhivery.

Packaging

The end goals differ: can either be done for end consumers or for logistical considerations.
The packaging will then depend on the end goal; form factor plays the lead role when
packaging goods for the end consumers, while function plays the lead role in packaging for
logistical operations.

Warehousing

It is the back-end building for storing goods. Based on the needs of the organization, it can
be in-house or outsourced.

Primary functions of a warehouse are product movement and storage. Activities such as
offloading of the goods coming from the suppliers, the intermediate packaging (if
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required), and shipping to other destinations (retailers or end consumers) are handled in the
warehouse. Similarly, they can also serve as a storage house for handing peak consumer
demand to avoid stock out of items, and acts as a buffer between the starting point (usually
manufacturing plant) and ending point (think about a typical retail outlet).

Different distribution strategies can be adopted by an organization based on its needs and
infrastructure in place, namely:

Cross-Docking: Relies on minimal processing at the warehouse level and facilitate

seamless connection between “incoming” and “outgoing” goods through technologies such
as bar code scanners; becoming increasingly important due to established structured
communication between retailers and manufacturers; best for high velocity goods with
predictable demand patterns.

Milk Runs: The delivery guy is out to deliver items from a single supplier to multiple
retailers or to pick up items from multiple suppliers for a single retailer (An Indian
Doodhwala can literally teach a thing or two about this, hence the naming we think).

Direct Shipping: A supplier directly ships to a particular retailer without any

intermediaries. Mostly happens with big-name stores with huge good volumes, and very
frequent replenishments. Big savings on time.

Hub and Spoke Model: Hub serves as the central node for nearby places, and the spokes
depend on the hub for their needs (think of a metropolitan and various tier-2 cities in its
proximity).

Pooled Distribution: Region is the most important factor driving this strategy. Delivers to
every destination point in a geographical area, smart for handling peak time loads and LTL
shipments. Plus one for the planet as a bonus!

Introduction.

Today, Internet application development demand is very high. So IoT is a major

technology by which we can produce various useful internet applications. Basically, IoT is
a network in which all physical objects are connected to the internet through network
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devices or routers and exchange data.IOT in today’s world help in smart way to monitor
and manage the physical device smoothly . Basically, IoT is a network in which all
physical objects are connected to internet through network devices or routers and exchange
data. IoT allows objects to be controlled remotely across existing network infrastructure.
This technique also has autonomous control feature by which any device can control
without any human interaction. “Things” in the IoT sense, is the mixture of hardware,
software, data, and services. “Things” can refer to a wide variety of devices such as smart
box ( RTU) which connect the device through internet and monitor the data and provide to
front end . These devices gather useful data with the help of various existing technologies
and share that data between other devices.

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IOT BUISNESS in Supply chain management

IoT or internet of things is a network of devices, appliances, vehicles and others that are
embedded with sensors, electronics, software, connectivity and actuators; enabling them to
connect and exchange data. In simple words, IoT devices share data in a wired or wireless
network.The definition mentioned above itself showcases the endless possibilities that IoT
inventions can provide the world; changing it right at the roots. The impact of IoT is felt
most in the business world because not only has it changed the methods of different
business operations, but also the way information is collected and exchanged.The business
world is changing with the introduction of IoT in the following ways.
Inventory Tracking and Management
IoT inventions can helpsupply chain management in tracking and managing inventory by
giving you automatically-controlled option.this reduce the IoT software and devices can
be installed in your storage units and warehouses which can help in managing inventory
changes while your personnel can invest their time in more cognitively demanding tasks.

Data sharing and perception

All businesses function and grow with the help of data collection and exchange, and the
introduction of IoT has completely changed how data is handled. Apart from offering
greater access to consumer data, IoT devices track and record patterns in which a consumer
interacts with the devices. This makes the devices smarter, which allow them to offer a
better user experience; simultaneously helping businesses in interpreting that data for
improvement and growth. Businesses use data to study buyer cycle, consumer
requirements, the scope for improvement & innovative inventions and methods for
advertising & marketing. This data can be collected, shared and interpreted effectively with
the help of IoT technology.

Remote Work
With IoT technology, you don’t have to be physically present at the venue to handle work.

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If your business does not have to deal with physical inventory, then you can make
maximum use of IoT technology because it allows your employees to connect and work
remotely, and studies have proven that remote workers are happier and more productive,
which will significantly improve your business functions.
Introduction of IOT

The Internet of Things (IoT) is the network of Physical objects or “things" embedded with
electronics, Software, sensors, and network connectivity, which enables these objects to
collect and exchange data. IoT allows objects to be sensed and controlled remotely across
existing network infrastructure, creating opportunities for more direct integration between
the physical world and computer-based systems, and resulting in improved efficiency,
accuracy and economic benefit.

IoT allows objects to be sensed and controlled remotely across existing network
infrastructure, creating opportunities for more direct integration between the physical
world and computer-based systems, and resulting in improved efficiency, accuracy and
economic benefit.

The term Internet of Things is 16 years old. But the actual idea ofconnected devices had
been around longer, at least since the 70s. Back then, the idea was often called “embedded
internet” or “pervasive computing”. But the actual term “Internet of Things” was coined
by Kevin Ashton in 1999 during his work at Procter&Gamble. Ashton who was working in
supply chain optimization, wanted to attract senior management’s attention to a new
exciting technology called RFID. Because the internet was the hottest new trend in 1999
and because it somehow made sense, he called his presentation “Internet of Things”. The
concept of IoT started to gain some popularity in the summer of 2010. Information leaked
that Google’s StreetView service had not only made 360 degree pictures but had also
stored tons of data of people’s Wifi networks. People were debating whether this was the
start of a new Google strategy to not only index the internet but also index the physical
world.

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 The same year, the Chinese government announced it would make the Internet of Things a
strategic priority in their Five-Year-Plan.

In 2011, Gartner, the market research company that invented the famous “hype-cycle for
emerging technologies” included a new emerging phenomenon on their list: “The Internet
of Things”.

The next year the theme of Europe’s biggest Internet conference LeWeb was the “Internet
of Things”. At the same time popular tech-focused magazines like Forbes, Fast Company,
and Wired starting using IoT as their vocabulary to describe the phenomenon.

In October of 2013, IDC published a report stating that the Internet of Things would be a
$8.9 trillion market in 2020. The fundamental principle of IoT is collecting data from
uncomfortable and unfavourable places and moving to a comfortable place where the client can
aggregate and use the data.

STRUCTURE OF IOT

4 fundamental components of IoT system, which tells us how IoT works.

 I. Sensors/Devices
 ii. Connectivity
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 iii. Data Processing
 iv. User Interface

SENSORS- sensor or devices like temperature sensors ,pressure sensor are the First,
sensors or devices collect data from their environment. This could be as simple as a
temperature reading or as complex as a full video feed.

CONNECTIVE-Next, that data is sent to the cloud. The sensors/devices can be connected
to the cloud through a variety of methods including: cellular, satellite, WiFi, Bluetooth,
low-power wide-area networks (LPWAN), or connecting directly to the internet via
ethernet.

DATA PROCESSING- Once the data gets to the cloud, software performssome kind of
processing on it.This could be very simple, such as checking that the temperature reading is
within an acceptable range. Or it could also be very complex, such as using computer
vision on video to identify objects (such as intruders in your house).
USER INTERFACE- Next, the information is made useful to the end-user in some way.
This could be via an alert to the user (email, text,notification, etc). For example, a text alert
when the temperature is too high in the company’s cold storage.Also, a user might have an
interface that allows them to proactively check in on the system. For example, a user might
want to check the video feeds in their house via a phone app or a web browser.However,
it’s not always a one-way street. Depending on the IoT application, the user may also be
able to perform an action and affect the system. For example, the user might remotely
adjust the temperature in the cold storage via an app on their phone.

And some actions are performed automatically. Rather than waiting for you to adjust the
temperature, the system could do it automatically via predefined rules. And rather than just
call you to alert you of an intruder, the IoT system could also automatically notify relevant
authorities.

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 Introduction of IOT in India

The market potential of the Internet of Things in India alone is expected to reach USD 9
billion by 2020. With this, the IoT units in India can also see a rapid growth of 31 times to
reach 1.9 billion by 2020.
At present, there are approximately 7.6 billion people on the Earth. Nearly, 3.7 billion of
these are connected to the Internet; roughly 50% of such connected population resides in
Asia and 24% amongst them belongs to India.

Internet of things (IoT), with the capability to increase the connectivity of everything,
everyone and everywhere, is changing the way we do things. India with a landscape of 120
IoT firms has the required technical skills to drive the IoT revolution making it one of the
key countries poised for the implementation of large scale IoT projects.Xlit is one of IOT
company of Indian market which provide Iot services to Indian market. India has already
more than 100 smart city initiatives planned. The focus is to enable seamless
communication not only amongst humans but between machine to machine and machines
to humans.

In the context of Indian market, the advancing and ubiquitous connectivity is enabling
change in every sector of the country. IoT will continue altering society as we move
forward, establishing new variables and new value chains which will embrace both humans
and machines.

Consumer expectations from IoT:

 Better access to public services.
 Lower levels of pollution for lesser environmental impact.
 Improved safety and security for citizens.
 Improved and affordable healthcare.
 Reduced congestion and queues due to traffic.
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Future of IoT in India
Everyone wants a world which is connected to the internet and everything in it – from your
smartphone to computers to watches and refrigerators can communicate in real-time.
Internet of Things certainly makes it possible. In India, the maximum push for IoT
adoption is coming from the government, with initiatives like ‘Digital India’ and ‘Make In
India’. A special focus is on the development of Smart Cities – one that uses IoT devices to
manage utilities, traffic, healthcare etc. Future of IoT in India is very promising with
undying support from the government. If the current progress continues, the prediction
about IoT potential in India might come true. The major sector where IOT services can
help in development of India are-

 Agriculture
 Transport/ supply chain
 Infrastructure
 Safety and sacurity
As india is a developing nation where lots of work is needed to be done in the field of
smart monitoring and controlling of devices .IOT is one of the platform which help in that
sector. Everyone, from consumers to corporates, is embracing the changes brought by the
revolution called the Internet of Things (IoT). It has changed the world in more ways than
we could imagine until a few years back. And the changes and advancements will continue

78
in future as well, in fact, Internet of Things (IoT) will shape our future. Already the
numbers are staggering; billions of sensors connected with billions of devices are
redefining almost everything under the sun. It is estimated that around 75 Billion devices

will be interconnected by 2025.

IOT IN SUPPLY CHAIN MANAGEMENTS

Internet of Things technologies let supply chains better manage their operations from
production through to delivery. Connected machines, vehicles, and inventory provide data
in real time. ... Cloud solutions help members of extended supply chains and
ecosystems to benefit from the IoT together. With smart sensors which can capture and
transmit data, you can now get a clear picture of the condition, location and environment of
your goods as they are in transit. ‘Anytime, anywhere’ data access empowers you to make
informed, intelligent decisions and take corrective actions so that your supply chain runs
more smoothly and efficiently.

79
 COMPANY PROFILE

COMPANY DETAILS –

 COMPANY NAME –XLIT PRIVATE LIMITED


 ADDRESS-BRZ-121,C-2 Block,Mahavir Enclave-I

 COMPANY BUISNESS-IOT SERVICES PROVIDER

 An ISO 9001:2015, 14001:2015 Certified Company

80
 XLITTEAM

XLIT AB XLIT INDIA

PRIVATE

SWEDEN LIMITED
Global Head
India Head
xlit group AB, RZ-121,C-2BLOCK
Majgatan 11,
Mahavir Enclave-I
582 46 LINKÖPING, Sweden New
Delhi 11004 ,

INDIA

COMPANY NAME- XLIT INDIA PRIVATE LIMITED

PARENTS COMPANY NAME- XLIT GROUP AB SWEDEN

AREA OF COMPANY-IOT(INTERNET OF THING)

It was incorporated in 28/04/2017.

Xlit INDIA PRIVATE LIMITED work as an IOT based company.This company is

registered under Registrar of Companies (RoC-Delhi) and it is classified as theSubsidiary
of Foreign Company.

Its authorized capital is Rs. 100,000 and its paid up capital is Rs. 100,00

81
 XLIT mission is to be a leading company providing superior quality products and services
at competitive prices. We want be a globally innovative and competitive business
providing 100% genuine services to our customers. We are committed to total customer
satisfaction by providing quality products & services.XLIT was established in 2017 and
has global business in three main areas: Technical & Test Services, Logistics & Supply
Chain Management Services and Internet of Things (IoT) solutions for monitoring and
management of buildings and machines in the area of utility distribution and
consumption.XLITpartnered with Modio AB, which is a Swedish IoT development
company, that has developed its IoT technology for more than six years, a technology
which has been deployed in Europe, Africa and now in Asia.xlit started the IoT journey in
India with philosophy, “Validate the demand first, then develop a better product”. It was
extremely important for us to take the market fast, even if the product was not the best, and
then improve it with all the experiences and client feedback we had gathered.

Xlit started with different domains viz. Smart Energy & Utilities, Smart Buildings, Smart
Manufacturing/ Industry 4.0, Smart Security & Surveillance, Condition Monitoring, IoT
Platform and eventually transformed our business to focus on Smart Energy & Utilities and
Smart Buildings.

KEY BUISNESS OF XLIT INDIA PRIVATE LIMITED-

XLIT GROUP have global business in three main areas:

 Technical & Test Services

 Logistics & Supply Chain Management Services
 Internet of Things (IoT) solutions for monitoring and management of buildings and
machines in the area of utility distribution and consumption.

Technical& test service-

Xlitindia private limited provide technical & test service to other Telecom sector company
at present time. company used to work provide test services to company like flux.

82
LOGESTICS & SUPPLY CHAIN MANAGEMENT
Xlit currently engaged in the business supply chain management and provide help to the
other company in distribution and transportation of goods and services.
Internet of Things.

The core business of XLIt is IOT .XLIT AB in Collaboration with MODIO AB Sweden is
the Global Specialist in IoT(Internet of the things) Solutions for Industries, Buildings &
Solar through secured, automated and continuous updated of embedded and IoT systems.

Company engage in business of providing IOT solution to their customer.As they install
the device and check the data send the data from front end to customers. Through MODIA
cloud .IoT system is built on the foundation of IT-security, openness and continuous
updating of system and hardware making it possible to interact and integrate with other
systems. We offer solutions as per customers need. IoT based for Energy Monitoring,
Industry IoT Solutions (Energy & Sustainability / Process Waste Reduction), Solar Design
and Implementation.

IoT Business Model : Offer a Service

XLIT use an IoT product to offer a new service (or enhance an existing service) totheir
customers. In this case, I’m not talking about an “as a service” type model. Here, I
explicitly mean providing a service, with real people involved.In this IoT business model,
XlitIoT product can be an enabler and differentiator for your company to sell a service.
Here are a few examples of this IoT business model:

83
 XlitUse an IoT product to monitor machinery, predict maintenance, and then sell a
maintenance contract.XlitInstall IoT devices in a smart building to measure energy
consumption. Then sell an energy audit and energy optimization services.

IoT Business Model Pay-Per-Usage

Having sensors on your hardware device means you can monitor your customer’s
environment and how much they use your product. This opens the door to an innovative
IoT business model where you charge your customer for the amount of time they are
actively interacting with your product.
In this IoT business model, the goal is not to make money on the device itself. Instead, you
are using the data produced by the IoT device to track usage. Xlitindiaic currently working
on this model .

 Xlit product and services

1 Smart Energy & Utilities

Optimize energy distribution, reduce operating expenses, and improve customer service
with clear visibility of power usage.

Smart Grid

84
Make better use of energy supply by optimizing electricity generation and distribution
while lowering operating costs

Smart Buildings

Improve building efficiency with IoT for smart buildings

IoT Applications for Smart Buildings

Security & Surveillance

Prevent loss of critical assets with real-time monitoring through secure and reliable remote
surveillance.

Facilities Management

85
Monitor and optimize your building's systems to match occupancy patterns and desired
comfort levels.

Home Automation

Enable homeowners to optimize systems such as lighting, utilities, and HVAC to reduce
consumption and save money.

Smart Manufacturing/ Industry 4.0

86
Improve operational visibility and efficiency

IoT Applications for Smart Factory

Predictive Maintenance

Connect equipment to get real-time, actionable insights to improve asset availability and
performance Supply Chain Management

Optimize production and avoid costly disruption with real-time visibility throughout the
value chain.

87
Xlit key Management team-

MR. DESH RATAN TIWARI- Director

MR . PRASHANT RAI- Director

MR.SAYED QASIM ALI - General Manager (SCM)

MR . RAVI SHUKALA - Group leader technical head
MRS . SHUKANYA –

88
 SWOT ANALYSIS OF COMPANY

STRENGTH –Xlit as an start-up company have a good experience technical tean is a key
strength .XLIT has been a pioneer in developing world class and highly secure IoT Products and
Solutions that can revolutionise the way we see and use everyday things both at individuals
and industrial levels. Xlit have a proper channel to monitor and control the business.

Having a partner like MODIO , who provide advance devices to Xlit for their market.

Xlit parents company xlit AB a pure advance IOT based technology help this company .

WEAKNESS-xlit being a start-up company did not have complete knowledge of Iot
market in india .XLIt need a large amount of resources to cover the india market .For Xlit
fund is major problem to set up the business.

OPPORTUNITY-Being a start-up in country like India xlit has a huge market to cover and
expand their business. At present in india government are running many project like Smart
cities, digitalization where IOT can play a key role and Xlit have that opportunity. As xlit
have technology and a good technical support which can control and manage this (IOT)
sector very strongly and grasp that opportunity to develop their businessThe mega projects
backed by Government of India such as smart cities, smart transportation, smart grids, etc.,
are also expected to further propel use of IoT technology in the country in next 5 years. In
next coming year when the technical advancement of physical devices will happen ,they
need a better control and advance real time monitoring and this create a very big
opportunity for IOT industry.

THREATS- AS INDIA is very big market for IOT there is tough competition for XLIT .Xlit have
main threats with their competitor as xlit is a new in market. As India is not completely
digitalized Connectivity is the oxygen of IoT systems, it is difficult for IOT business
because IOT devices us totally control through internet India is witnessing a fast paced
change in its cybersecurity trends and trying to keep up with the challenges.

89
 OBJECTIVE OF THE STUDY

To know the effectiveness of logistics management of Xlit India Pvt. Ltd and to bench
mark the organization with respect to the industry.
To understand role of logistics system in functionality of Xlit India Pvt. Ltd.
To evaluate the image of Xlit India Pvt. Ltd in customers mind
To find out the customer satisfaction with the existing services

90
 RESEARCH METHODOLOGY

“Research Methodology” is a term made up of two words, research & methodology.

‘Research’ means ‘search for knowledge’. It is a scientific and systematic search for
potential information on a specific topic. It is an art of scientific investigation. It is careful
investigation or inquiry especially for search of new fact in any branch of knowledge.

METHOD OF DATA COLLECTION

Data can be of two type’s primary and secondary data. Primary data are those which are
collected afresh and for the first time, and it is in original form. Primary data can be
collected either through experiment or through survey. The researcher has chosen the
survey method for data collection. In case of survey, data can be collected by any one or
more of the following ways:

 Observation
 Questionnaire
 Personal or Group Interview
 Telephone survey
 Communication with respondents
 Analysis of documents and historical records
 Case study
 Small group study of random behavior

The researcher has chosen the questionnaire methods of data collection due to limited time
in hand. While designing data-collection XLIT India Pvt. Ltd, adequate safeguards against
bias and unreliability must be ensured. Whichever method is selected, questions must be
well examined and be made unambiguous. Researcher has examined the collected data for
completeness, comprehensibility, consistently and reliability.
91
Researcher has also gathered secondary data which have already been collected and
analyzed by someone else. He got various information from journals, historical documents,
magazines and reports prepared by the other researchers. For the present piece of research
the investigator has used the following methods:
 Questionnaire
 Interview
 Observation

SAMPLE OF THE STUDY

 A sample design is a definite plan for obtaining a sample from the sampling frame.
It refers to the technique or the XLIT India Pvt. Ltd. the researcher would adopt in
selecting some sampling units from which inferences about the population is
drawn. Sampling design is determined before any data are actually collected for
obtaining a sample from a given population. The researchers must decide the way
of selecting a sample.
 There are various methods o sampling like systematic sampling, random sampling,
deliberate sampling, mixed sampling, cluster sampling, etc. Among these methods
of sampling researcher has used random sampling so that bias can be eliminated
and sampling error can be estimated. Designing samples should be made in such a
fashion that the samples may yield accurate information with minimum amount of
research effort.

SAMPLING
 Sampling may be defined as the selection of some part of an aggregate or totality
on the basis of which a judgment or inference about an entire population by
examining only a part of it.
 The items so selected constitute what is technically called a sample, their selection
pXLIT India Pvt. Ltd or technique is called sample design and the survey
conducted in the basis of sample is described as sample survey.

92
 SAMPLE SIZE
In sampling design the most complicated question is: what should be the size of the
sample. If the sample size is too small, it may not serve to achieve the objectives and if it is
too large, we may incur huge cost and waste resources. So sample must be of an optimum
size that is, it should neither be excessively large nor too small. Here, researcher has taken
30 as the sample size.

93
 CHAPTER - 5
DATA ANALYSIS AND HYPOTHESIS TESTING

INTRODUCTION

Analysis of Data obtained from Questionnaire is presented in this Chapter.

Various conclusions are drawn from the Data analysis and interpretation is also
presented. The proposed Hypothesis are tested and presented in this Chapter. Finally,
concluding remarks that support development of Framework for IT enablement of
SCM is also presented.

ANALYSIS OF DATA

The study is focused on the IT enabled supply chain management practices in

Indian industrial sector, so the population for this study is entire organizations
operating in India. Questionnaire was hosted by a web portal exclusively obtained for
this research. The portal is active during November 2009 to March 2010. Out of an
initial population of over 900 small, medium and large Indian companies, a randomly
selected 588 companies were invited to participate in the survey questionnaire
through a mail containing the information on the questionnaire web hyperlink and
Excel Spread-sheet. The portal contained aim of the research, brief guidelines for the
participants and an Excel Spread-sheet for providing responses. 247 companies were
responded with complete data through questionnaire leading to a response rate of
42%.
The following criteria have been given priority in selecting the sample units:
The company in sample is
 Practicing Supply Chain Management Practices and have a dedicated
person/Department to carryout SCM
 Demonstrated potential with regard to business needs and resources to
adopt SCM practices or company should be planning the SCM initiative
on a systems basis
 Having a manufacturing / processing / assembly unit or head-office
preferably in metropolitan cities of India and its sub-urban areas or in
popular industrial establishments.

94
 Companies whose annual turnover is above Rs. 100 Cr are considered as
Large firms in terms of turnover and who’s annual turnover below Rs. 100 Cr are
considered as Small firms.

The questionnaire was pre-tested by 10 supply chain managers for content of

validity. Necessary care has been taken to help the respondents in answering the
questions, assess their problems in understanding some questions and suggest
modifications. A few pre-test questionnaires were also administered through e-mail
wherein comments were also invited from pre-test respondents. Pre-test questionnaire
was also sent to two SCM experts to suggest changes in questionnaire with regard to
type of questions and scales of measurement used therein. As requested by the
majority of the participants, the names of the participants and companies were kept
confidential.

95
 DATA RESPONSES

This section deals with the Responses from the respondents through the
Questionnaire.

Primary Sector of the respondents

60

50

40

30 Frequency
Percent
20

10

0
Below 200 201 – 500 501 – 1000

Primary Sector Frequency Percentage

Manufacturer 167 68
Service 45 18
Both 35 14
Total 247 100

Table 5.1: Primary Sector of the Respondents

Among the respondent companies 167 are manufacturing companies
constituting considerable 68% respondents. Companies whose activities fall under
both manufacturing and service contributes 18% of the responses and remaining
respondents said Service as their primary sector. Manufacturing companies operations
are typically involve almost all sorts of business entities starting from suppliers to the
customers.

96
 Number of Employees
300

250

200
Frequency
150
Percent
100
Cumulative Percent
50

0
Below 201 – 501 – Above Total
200 500 1000 1000

Cumulative
No. of Employees Frequency Percent
Percent
Below 200 26 11 11
201 – 500 49 20 31
501 – 1000 51 21 52
Above 1000 121 49 100
Total 247 100

Table 5.2: Number of Employees

Number of employees in respondent companies is presented in the table. 5.2

percent of the companies’ employs less than 1000 employees and 44 percent
respondent companies employ more than 1000 employees.

97
 SCM practices in the company
300

250

200

150
Frequency
100
Percent
50

0
company Less than Between Above 8 Total
3 Years 3–8 Years
Years

No. of Years of SCM Practices in the

Frequency Percent
company
Less than 3 Years 0 0
Between 3 – 8 Years 73 30
Above 8 Years 174 70
Total 247 100

Table 5.3: SCM Practices in the Company

The years of SCM practices indicates that the firms in India are practicing
SCM quite considerable time. 174 companies, which contribute 70% respondent
companies out of 247 companies, are practicing Supply Chain Management for more
than 5 years. This is indicated by the other observations such as usage of SCM
specific IT tools and the present performance of Supply Chain, majority of the
companies opined that they are managing supply chain with the available common IT
tools and a few are using SCM specific IT tools.

98
 Present Supply Chain performance
300
250
200
150
100 Frequency
50
Percent
0

Likert scale Choice Frequency Percent

Strongly disagree 95 38
Disagree 77 31
Neither agree nor disagree 42 17
Agree 19 8
Strongly agree 14 6
Total 247 100

Table 5.4: Present Supply Chain Performance

Around 69% of the respondent company’s present supply chain not fulfilling
the expected performance. SCM literature indicates that this may be due to poor
supply chain planning and design, organizational resistances in re-engineering the
business processes, lack of proper information flow strategies and overall
management of supply chain by better utilizing available technologies. A few
companies expressed that their present supply chain is satisfying the need. Obviously,
these companies are large companies enjoying huge annual turnover and recognized
the need of usage of emerging technologies and implementing through BPR.

99
 Most significant obstacle for IT enablement of SCM
300
250
200
150
100
50 Frequency
0 Percent

Obstacle for IT enablement of SCM Frequency Percent

Low level internal integration among user
Departments within the firm 22 9
Internal Resistance due to lack of knowledge
on existing IT tools for SCM and emerging
Technologies 26 11
Lack of Top Management’s Commitment to
invest in IT 52 21
Supplier Reluctance to facilitate integration of
business operations 24 10
Lack of IT enabled Supply Chain Management
Skills in existing Human Resources 28 11
No proven ROI in IT enablement 95 38
Total 247 100

Table 5.5: Most significant obstacle for IT enablement of SCM

Around 38% of the respondents opined that no proven ROI on IT enablement is the
biggest obstacle to convince top management to consider on IT investment. And 21%
of the respondents opined that lack of top management commitment to adopt
new/emerging technologies. It can be ruled out that lack of top management
commitment to invest in IT is due to no proven ROI in IT investment alone. Top
management may think investment in IT enablement in many views. In case of
willingness to re-engineer business processes, companies need to convince supply
chain partners, mainly suppliers.

10
0
 Major Concern for IT enablement of SCM
300

250

200

150
Frequency
100 Percent

50

0
Buy-side Sell-Side Both (Entire Total
transaction Transactions Supply Chain)
(Up-Stream) (Down-Stream)

Major Concern Frequency Percent

Buy-side transaction (Up-Stream) 86 35
Sell-Side Transactions (Down-Stream) 56 23
Both (Entire Supply Chain) 105 43
Total 247 100

Table 5.6: Major Concern for IT enablement of SCM

Around 43% companies opined that the major concern for IT enablement is
across the total supply chain. IT enablement across the entire supply chain needs total
revamp of the business processes. If the organization is willing to re-engineer their
businesses this option will be strategic. If the organization is willing to concentrate on
either up-stream or down-stream, then the option would be simple. In order to
implement IT along the up-stream side, dedicated software, hardware may be required
calling a need to adopt customized or proprietary SCM specific IT tools to get
strategic benefits. Whereas implementation along the down-stream side, common IT
tools such as Internet, XML, collaborative portals are sufficient and this offers an
advantage of minimum investment on IT when compared to SCM specific IT tools.

10
1
 CONCLUSIONS

Out of an initial population of over 900 small, medium and large Indian
companies, a randomly selected 588 companies were invited to participate in the
survey questionnaire. 247 companies were responded with complete data through
questionnaire leading to a response rate of 42%.

Around 69% of the respondent company’s present supply chain not fulfilling
the expected performance. SCM literature indicates that this may be due to poor
supply chain planning and design, organizational resistances in re-engineering the
business processes, lack of proper information flow strategies and overall
management of supply chain by better utilizing available technologies.

IT enablement across the entire supply chain needs total revamp of the
business processes. If the organization is willing to re-engineer their businesses this
option will be strategic. If the organization is willing to concentrate on either up-
stream or down-stream, then the option would be simple. In order to implement IT
along the up-stream side, dedicated software, hardware may be required calling a need
to adopt customized or proprietary SCM specific IT tools to get strategic benefits.
Whereas implementation along the down-stream side, common IT tools such as
Internet, XML, collaborative portals are sufficient and this offers an advantage of
minimum investment on IT when compared to SCM specific IT tools. In case of
willingness to re-engineer business processes, companies need to convince supply
chain partners, mainly suppliers.

When asked for most significant benefit expected form the IT enablement of
SCM, more than half of the respondents (67%) said ROI on IT enablement and
lowering Total Operating Costs as the significant benefits. Also, SCM literature

10
2
extensively supports that the most significant benefit anticipated through the adoption of IT
for SCM depends on individual firm’s choice, which in turn depends on the nature of
business, relationship aspects with the suppliers, strategic benefits such as reduction in
costs, improved customer satisfaction, better supplier and customer relationships,
reduction of lead-time across the supply chain, inventory optimization etc.,. These
anticipated benefits further can be discussed as a complementary to the main benefits
purely based on the suppliers side and customer side i.e., upstream side or downstream side
respectively.

ANOVA between the respondents response “present supply chain performances

is satisfactory in fulfilling the expectations” and “extent of usage of "SCM specific IT
tools for managing your Supply Chain” revealed the significance relationship between
them. This elaborates the reasons for the poor performance of the present supply chain is
due to inadequate usage of IT tools, especially usage of SCM specific IT tools are
predominant.

Around 80 percent of the respondent companies expressed that their business

processes are required to be re-engineered that calls a need of re-design of their present
supply chain. Business process re-engineering demand complete revamp of the existing
business processes with a strategic view to minimize lead-times and align the entities along
the entire supply chain. The major hurdle in this regard is differing organizational cultures
among the supply chain partners.

In order to develop an effective framework for ‘IT Enablement” of SCM, some strategies are
suggested as follows
1. Supply chain costs should be optimum including the information sharing costs
2. Ambiguity should be eliminated regarding ‘IT Enablement’ of SCM in the
context of benefits or the impacts
3. Most promising ‘IT tool’ selection should ensure adoptability, affordability and
suitability
4. IT enablement should ensure effective RoI on the Investment

10
3
 RECOMMENDATIONS

On the basis of the above the following recommendations are made: -

 XLIT Pvt. Ltd needs to investigate ways of improving and establishing relationship along

the entire value chain. There are competitive advantages

through enhanced relations with fewer suppliers, resulting in lengthy relationships, which are

more likely to include assets dedicated to the partnership. Sharing greater information and assets

enable such programmes as just-in-time manufacturing, which will increase the efficiency for

XLIT Pvt. Ltd and accrue benefits to all parties through cooperation and coordination.

 The organisation must focus on empowering designated groups. As such special training

and development initiatives should be investigated which focus on providing respondents with

the tools for effective decision making. XLIT Pvt. Ltd should pursue empowerment by

encouraging employees to develop their own abilities through company sponsored training and

development and to accept as mush responsibility within their capability.

 A highly important element of this strategy is EDI, an electronic data- interchange system

that directly connects customers to the overall XLIT Pvt. Ltd distribution system. Point-of -sale

information from XLIT Pvt. Ltd major accounts provides the ability to generate instantaneous

data relevant to reorders, invoices and shipments. This distribution system, while costly, would

enable major customers of its products, to avoid having to place orders and coordinate logistical

arrangements. It would also help sales to maintain the appropriate product inventory at any given

time.

 The method of colour matching problematic colours can be entrusted with the pigment

suppliers. This is their area of expertise and needs to be entrusted to them. XLIT Pvt. LTdneeds

10
4
 to specialise and focus on its core competencies is enhanced by outsourcing those activities

which can be

better performed by outside firms based on their area of expertise.Employees from

XLIT Pvt. Ltd can be seconded to pigment suppliers to learn the science of colour matching.
 Low inventory levels can contribute vastly to a firm’s efficiency and cost.

Inbound logistics revolve around supplier relationship. Greater collaboration needs to be

established with suppliers to support a JIT system of manufacturing. With overseas suppliers a

local warehouse could be established as an intermediate supply.

 Effort is required to reduce work in progress before normal production resumes. If work

in progress goes over a pre-determined value, all production needs to stop. The situation needs to

be analysed for the reason for the build up and corrective action implemented. Trials need to be

conducted for increase in machine speed so as to reduce production time. If the physical

properties do not change then the new machine speed to be specified in the specification.

 The marketing and sales segment of the value chain involves such activities as promotion

and advertising, sales representation, relationships, technical support as well as pricing strategies.

This link is an important aspect of reputation building by serving as the direct interface between

the consumer and the product. Advertising encourages people to make purchases. A web site for

XLIT Pvt. Ltd needs to be established with relevant technical support and applications for the

various products it offers. Sales representatives have to be familiar with the product that they

sell. The product however has to be backed up by one of high quality.

10
5
 ‘First off’ is important to ensure the process capability of the production lines. The

‘first off’ is the first sample from the production line that is inspected against the

specification. If it conforms then only is the production line allowed to continue. If the

product does not conform, then adjustments are made to the process or the machine and

another sample is tested. At key points in the production process, quality inspectors need to

monitor every metre of the process. Extra personnel need not be employed. The current line

operators could be multiskilled so that they become aware of the requirements of the product.

They will be performing dual functions. Important tests can be performed on the line instead

of this sample being tested in the laboratory. The instant feedback to the line can save

hundreds of metres of defective product being produced. Therefore the relevant equipment

needs to be purchased and line personnel trained for effective utilisation and feedback.
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