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[1]
Study of Stock Management Practices
At
Honda Cars India ltd.
By
MANISH SHARMA
MBA 4TH
TRIMESTER
15GSOB201043
JUNE 2016

[2]
Study of Stock Management Practices
At
Honda Cars India ltd.
By
MANISH SHARMA
MBA 4TH TRIMESTER
15GSOB201043
Under the guidance of
MR. Ravinder Kumar Rustagi Dr. / Prof. Mrityunjay Kumar
Designation – Head ofCBU Logistics Assistant Professor
Organization – Honda Cars India ltd. SOB, Galgotias university
JUNE 2016

[3]
Certificate of Approval
The following Summer Internship Project Report titled "STUDY OF STOCK MANAGEMENT
PRACTICES” is hereby approved as a certified study in management carried out and presented in a
manner satisfactory to warrant its acceptance as a prerequisite for the award of Master of Business
Administration for which it has been submitted. It is understood that by this approval the
undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the Summer Internship Project Report only for the purpose it is
submitted to the Summer Internship Project Report Examination Committee for evaluation of
Summer Internship Project Report
Name Signature
1. Faculty Mentor Prof. Mrityunjay kumar
2. Industry Mentor Ravinder Kumar Rustagi

[4]
Certificate from Summer Internship Project Guides
This is to certify that Manish Sharma, a student of the Master of Business Administration has
worked under our guidance and supervision. This Summer Internship Project Report has the requisite
standard and to the best of our knowledge no part of it has been reproduced from any other summer
Internship project, monograph, report or book.
Faculty Mentor Industry Mentor
Mrityunjay Kumar Ravinder kumar rustagi
Assistant Professor Organization- Honda cars india ltd.
Address- gr.noida
designation- head of logistics

[5]
Contents
S.NO Particulars Page no.
1. Executive summary
2. Acknowledgment
3. Company profile 1-8
4. Internship profile 9-15
5. Work description 16-18
6. Practices followed & key challenges 19-20
7. Project objective 20
8. Data analysis 20-26
9. Learning and value addition 27-32
10. Recommendation and suggestion 33-35
11. Questionnaires 36
12. Bibliography 37

[6]
Executive summary
Honda cars India ltd. (HCIL) is a subsidiary of the Honda of Japan for the production,
marketing and export of passenger cars in India. Formerly known as Honda Siel Cars India
Ltd, it began operations in 1995 as a joint venture between Honda Motor Company and Usha
International of Siddhartha Shriram Group.
The replenishment functionality is meant to help you acquire a basic overview of inventory
levels, along with expected supplies over time. This plays a major role in providing an
accurate delivery date for multiple items. You may make calculations of the item price for
specific clients.
Apart from that, basic measurements can be set up. This includes:
Maximum items in the stock
 Minimum items in the stock
 Delivery time
 Order package amounts or the number of items required for regular delivery
“Inventory management is a science primarily about specifying the shape and placement of
stocked goods. It is required at different locations within a facility or within many locations
of a supply network to precede the regular and planned course of production and stock of
materials.”
I study the supply chain of the company and after that collect the sales data and analysis its
In graphical form grand chart etc. and find out which zone sales is more where open a
regional stock yard because its help both customer and company basically RSY help to
reduced lead time of manufacture to customer
"Goods and Services Tax" would be a comprehensive indirect tax on manufacture, sale and
consumption of goods and services throughout India, to replace taxes levied by
the central and state governments. Goods and Services Tax would be levied and collected at
each stage of sale or purchase of goods or services based on the input tax credit method.
Study about positive impact of GST
 Bigger consolidation of demand at warehouses
 Reduced variation in demand at warehouses
 Improved inventory management
 Improved demand planning
 Reduced production complexity (less changeovers)
 Reduction in number of echelons in supply chain.
 Increase in truck load utilization (especially in primary freighting)
 Reduced cost for improving service level
The RSY would help the company reduced the time frame in distributing the vehicles to the
dealers and bring in more efficiency. At present it took at least 8-10 days to send vehicles
from Greater Noida

[8]
Acknowledgement
I have gained a lot of knowledge during industrial visit at Honda car India ltd. I would like to
express my gratitude to all those who give me the possibility to complete this project. I want
to thank GU-SOB for giving me the great opportunity to commence this industrial visit.
I am grateful to Mr. PR Ramakrishnan sir and Mr. Ravinder Kumar Rustagi Sir
(working as a counsellor in Honda car India ltd. Gr.Noida) under guidance, I have completed
this visit. I have no word to acknowledge the valuable time & support that I have received for
them.

[10]
Vision
BASIC PRINCIPLES
1) Respect for the individual.
2) The Three Joys (buying, selling and creating).
We at Honda believe that each person working in or coming in touch with our company,
directly or through our products, should share a sense of joy though that experience. This
feeling is expressed in what we call “the three joys”
Our goal is to provide joy though our business:
The joy of buying: for those who buy our products.
The joy of selling: engage in selling our products and services
The joy of creating: involved in business of creating our products
Mission
Maintaining a global viewpoint, we are dedicated to supplying products of the highest
quality, yet at a reasonable price for worldwide customer satisfaction.
Management Policies
1. Proceed always with ambition and youthfulness.
2. Respect sound theory, develop fresh ideas, and make the most effective use of time.
3. Enjoy work and encourage open communication.
4. Strive constantly for a harmonious flow of work.
5. Be ever mindful of the value of research and endeavor.
Dreams inspire us to create innovative products that enhance mobility and benefit society. To
meet the particular needs of customers in different regions around the world, we base our
sales networks, research and development centers and manufacturing facilities in each region.
Furthermore, as a socially responsible corporate citizen, we strive to address important
environmental and safety issues.

[11]
Introduction
Honda Cars India Ltd (HCIL) is a subsidiary of the Honda of Japan for the production,
marketing and export of passenger cars in India. Formerly known as Honda Siel Cars India
Ltd, it began operations in 1995 as a joint venture between Honda Motor Company and Usha
International of Siddharth Shriram Group.In August, 2012, Honda bought out Usha
International's entire 3.16 percent stake for ₹1.8 billion in the joint venture. The company
officially changed its name to Honda Cars India Ltd (HCIL) and became a 100% subsidiary
of Honda.
It operates production facilities at Greater Noida in Uttar Pradesh and
at Bhiwadi in Rajasthan. The company's total investment in its production facilities in India
as of 2010 was over ₹16.2 billion.
HCIL's first manufacturing unit at Greater Noida commenced operations in 1997. Setup at an
initial investment of over 4.5 billion, the plant is spread over 150 acres (0.61 km2). The
initial capacity of the plant was 30,000 cars per annum, which was thereafter increased to
50,000 cars on a two-shift basis. The capacity has further been enhanced to 100,000 units
annually as of 2008. This expansion led to an increase in the covered area in the plant from
107,000 m² to over 130,000 m².
Honda set up its second plant in India at tapukara in alwar district of Rajasthan, spread over
450 acres with an investment of RS 3526 cores.
The company invested 7.8 billion in Bhiwadi for its second production plant with an annual
production capacity of 50,000 units. It operates under the ISO 9001 standard for quality
management and ISO 14001 for environment management.
The company’s product range includes Honda Brio, Honda Jazz, Honda City, Honda Civic
and Honda Accord which are produced at the Greater Noida facility with an indigenization
level of 80%, 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as
Completely Built Units.
Honda’s models are strongly associated with advanced design and technology, apart from its
established qualities of durability, reliability

[12]
Challenges being faced by Honda plant in India
The Thailand floods in November last year, disrupted Honda’s supply chain to some of its
key manufacturing facilities including its greater Noida plant in Delhi, as result of which
production volumes its passenger vehicles, including the refusing new Brio hatch have
experienced a major setback. However with the situation having now improved. Honda SIEL
cars India ltd. has now announced that it will resume normal production in gr. Noida plant
with two shift operations.
New challenges in 2011, Honda started to face new challenges in the form of increased
competition for and decreasing sales of all of its models sold in India from 2011. Some of
new competitors who entered the Indian automobile market started to post stiff competition
to the company and overtook it in some product segments where it had been a leader. In
2011, VW’S Vento replaced Honda city as top selling mid-size sedan in the India market
within 8 month of its launch.
TECHNOLOGY
HSPP benefits from the rich experience of Honda Motors, Japan, the second largest engine
manufacturer in the world, because of their strong emphasis on R&D and in-house technical
innovation. India’s first LPG based Generator along with the Super Silent Key Start
Generator portable kerosene generators are some of the products which exemplify Honda’s
pursuit of technological excellence. The product range of Generators conforms to the most
stringent phase II Noise & Emission norms as laid down by the Central Pollution Control
Board (CPCB), Government of India.
CERTIFICATION
It was in recognition of this that HSPP became the first power products manufacturing
company in India to have been awarded the ISO 9001:2000 Certifications for its Quality
Assurance Systems & ISO 14001 for its Environment Management Systems.
While maintaining its leadership position in the domestic generator market, HSPP, is making
active efforts in developing new applications for its General-Purpose Engines (GPE). The
business of GPE and Water Pump sets is expected to contribute significantly to the
company’s future growth plans. Besides, it also offers the customers in India a wide range of
end-use appliances such as Electric and Engine Lawnmowers.
Environment and Safety

[13]
The Honda Group is globally recognized for its concern towards environment, safety and
conservation of the society in which it operates. HSCI follows the same in India for achieving
high standards in environmental safety in the various processes of car manufacturing.
Honda Assure
Its position as a customer centric company, and to enhance ownership experience for Honda
car customers, Honda Cars India Ltd. (HCIL) launched the 'Honda Assure', Honda’s
Insurance initiative.
Under the Honda Assure program all Honda customers get the benefit of a more transparent,
hassle-free transaction and a quick turnaround time on their insurance claims. The entire
transaction is routed through an on-line central server which enables HCIL to monitor the
overall operations more effectively. Some of the direct benefits to the customers include
Cashless Insurance across India, instant policy issuance, and improved turnaround time.
Auto Terrace
Honda's Exchange and Pre-Owned car division Auto Terrace has been in existence ever since
the interception of HCIL in India. Present in all major Honda dealers across the country, Auto
Terrace presents itself as the one-stop solution for catering to the needs of customers wanting
to exchange their existing cars for a New Honda car.
Exclusive Honda Care Program
Honda Care Program is designed to bring an extra measure of security & comfort to being a
Honda Owner. It includes additional warranty of 2 years or 40,000 kms after the new vehicle
warranty expires and 24 hrs. Roadside Assistance support for 4 years from the standard
warranty start date.
Sales Network
Honda Cars India has a strong sales and distribution network spread across the country. The
network includes 135 authorized dealership facilities in 83 cities. HSCI dealerships are based
on the “3S Facility” (Sales, Service, Spares) format, offering complete range of services to its
customers.
Offices
With strength of over 800 dealers and 15 Area Offices spread across the country, HSPP has
been bringing joy and satisfaction to more than 1.5 million users and this makes HSPP the
undisputed leader in the field of portable generators. It is a part of one of the world’s largest
power products company manufacturing a complete range of ¡°4-stroke range of Portable
generators, Water Pumps, Engines & Lawnmowers, to suit your requirements. This gives you
the choice to demand more from the world leader "Honda".

[14]
Different Models of Honda Cars:
2nd Generation Honda Jazz
The 5th Generation Honda City
8th Generation Honda Civic

[15]
Honda City (Ballade) — Launched 1998
Honda Accord — Launched 2001, production temporarily discontinued in early 2014 in
anticipation of all-new model)
Honda Civic — Launched 2006, production discontinued in 2012
Honda Jazz (Fit) — Launched in 2009
Honda Brio — Launched 2011
Honda CR-V — Imported since 2003; 2013 model locally assembled
Honda Amaze — Launched April 2013
Honda Mobilio — Launched July 2014
Honda BR-V - Launched May 2016

[16]
Awards
2014
 Corporate- engine of the year – Honda eco technology 100cc engine
 Sedan of the year – Honda city
2006
 Best Indian company by business standard group
 Manufacturer of the year by NDTV profit car India
 Manufacturer of the year by CNBC-TV 18 auto car India
 No1 mid premium SUV (Honda CR-V) by TNS
 Best mid-size size car( Honda city); no 1 entry luxury car (Honda accord)
 car in initial quality (Honda city) and most appealing mid-size car (Honda city) by JD
power no-1
2005
 CNBC auto car of the year 2004- Honda city
 ICICI overdrive SUV of the year 2004-honda CR-V
 ICICI overdrive car of the year 2004- Honda city
 Business standard motoring car of the year 2004- Honda city

[17]
Internship profile
Work Assigned:-
I have worked as a stock yard manager where we maintain the stock of finished goods like
Honda cars. Our work is to provide/fulfil the requirement of different showroom that is
available within the region. We maintain the demand and sale of Honda cars in minimum
price. We always setup our stock yard location in such a way so that we can reduce the
transportation cost for customer as well as for company.
Details of industry mentor
Mentor Name - Ravinder kumar rustagi
Organization- Honda cars India ltd.
Designation- Head of logistics
Location – Honda cars India ltd.
Plot no.A-1, sector 40/41, surajpur – kasna road,
Greater Noida industrial development area ,
Greater noida (up), pin- 201306
Task- Desk, Individual
Time frame – 1 JUNE 2016 to 14 JULY 2016

[18]
Gantt Chart
start Introduction
Of company
Study
process of
company
Study
how to
record
stock
data in
excel
sheet
They give
project on
stock
management
Data
collectionand
interpretation
Prepare
report and
Presentation
1 week
2 week
3 week
4 week
5 week
6 week
7 week

[19]
Summer Internship Feedback Form
(To be filled by the Industry Mentor)
Date: 13/07/2016
Intern’s Name: Manish Sharma
Batch: - 2nd
Company Name: Honda cars India ltd.
Address: Honda cars India ltd.
Plot no.A-1, sector 40/41, surajpur – kasna road,
Greater Noida industrial development area ,
Greater noida (up), pin- 201306
Department (in which the training has been done): logistics
Mentor’s Name: Mr. Ravinder Kumar Rustogi
Mentor’s e-mail id: rkrustogi@hondarcarindia.com
Contact Number:
Part A:
General Intern Performance Instructions: Please rate the student intern on each of the
following job dimensions. For each dimension, sample behaviors of excellent and satisfactory
performance are listed as guidelines:
Please mention the intern’s duties and responsibilities?
I have worked as a stock yard manager where we maintain the stock of finished goods like
Honda cars. Our work is to provide/fulfil the requirement of different showroom that is
available within the region. We maintain the demand and sale of Honda cars in minimum
price. We always setup our stock yard location in such a way so that we can reduce the
transportation cost for customer as well as for company.
Performance Rating Scale:
1= Unsatisfactory - did not meet expectations
2 = Fair - somewhat met expectations, but need improvement
3= Satisfactory - met expectations
4 = Good - met and exceeded expectations
5= Excellent - far exceeded expectations
1. Attitude/Effort: His/her attitude and efforts towards the work & duties assigned during
internship.
1 2 3 4 5
Ability to meet deadlines 
Keen to take on extra duties 
Seeks out opportunities 
Always make a contributions in work 
Always Takes initiative 

[20]
2. Works Independently: His/her ability to work independently to complete tasks with
minimum supervision.
1 2 3 4 5
Always submit assignments timely 
Complete tasks effectively 
Tasks are fully completed 
Team player/assists others 
Needs constant
supervision/help

3. Adaptability: His/her ability to adjust to new work requirements, directions with a minimum
loss of efficiency.
1 2 3 4 5
Response to feedback 
Attitude towards change to work duties 
Acceptance to criticism and modifications in
behavior/task accordingly.

Ability to accommodate to new directions/tasks 
4. Interpersonal Skills: Degree to which intern gets along with others (co-workers, supervisor,
clients.)
1 2 3 4 5
Ability to work well in groups 
Professional behaviour with co-workers

Effective and cooperative relationships with co-
workers

Ability to follow direction 

[21]
5. Reliability: Consider of absences or degree of regularity in coming to work on regularly
scheduled work days during the period.
1 2 3 4 5
Punctuality & Regularity 
Arrives on time or early 
Absence planned/non-disruptive 
6. Ability to learn: His/her ability to understand/grasp new ideas, opinions & instructions.
1 2 3 4 5
Interest in learning new tasks

Actively seeks out information

Continually improvement in job performance 
Accept new ideas and instructions

Part B:
Specific Internship Learning Objectives
(specific learning objectives should be filled in by student prior to giving form to supervisor).
 How to utilize Resources.
 Time management.
 Handling extra workload.
 Team work.
 Skills management.
 Production knowledge.
Additional Feedback/Comments:
(1) What were the strengths of this intern?
Answer: She was punctual, hardworking, cooperative and dedicated towards her work.
(2) What were the weaknesses of this intern?
Answer: Sometimes she became nervous.
(3) Are you willing to take interns in next year? (Indicate one) Yes No
Answer: Yes I will.
(4) What qualifications would you like to see in future interns?
Answer: We are looking for MBA Students.

[22]
(5) If an opening became available in your firm, would you consider this student for a full-
time position?
Answer: We will consider this intern in case of any opening.
(6) How would you assess the intern’s overall performance?
□ Outstanding
□ above average
□ Satisfactory
□ Below average
□ Unsatisfactory
Answer: Above Average.
7) Any additional comments or recommendations?
Answer: No comments and best of luck for the future.

[23]
Logistics management
“It is the process of planning, implementation and controlling the effective, efficient flow
and storing of goods and services and related information from the point of origin to the point
of consumption for the purpose of conforming to customer requirement”
In general business sense, logistics is the management of flow of things between the point of
origin and the point of consumption in order to meet requirements of customer or
corporation.
Logistics management is the part of supply chain management
Logistics – a system approach
System shown as logistic mix including following:
a) Functional areas
b) Order processing
c) Information flow
d) Warehousing
e) Inventory control
f) Packaging
g) Transportation
CBU logistics goal
Align logistics activities to achieve niguri wholesales targets with regard to capacity, logistics
quality, delivery & cost.
Role of division/department:-
 Dispatch capacity build-up
 Ensure the delivery quality
 On the time delivery
 Competitive logistics and operation cost
Logistics challenges
1. Inventory management
2. Transport strategy
3. Customer services
4. Facility/location

[24]
Work Description:-
Stock management
Stock management is the function of understanding the stock mix of a company and the
different demand on that stock. The demands are influenced by both external and
internal factors and are balanced by the creation of purchase order requests to keep supplies at
a reasonable or prescribed level.
Stock management in the retail supply chain follows the following sequence:
1. Request for new stock from stores to head office
2. Head office issues purchase orders to the vendor
3. Vendor ships the goods
4. Warehouse receives the goods
5. Warehouse stocks and distributes to the stores
6. Stores receive the goods
7. Goods are sold to customers at the stores
The management of the inventory in the supply chain involves managing the physical
quantities as well as the costing of the goods as it flows through the supply chain.
In managing the cost prices of the goods throughout the supply chain, several costing
methods are employed:
1. Retail method
2. Weighted Average Price method
3. FIFO (First In First Out) method
4. LIFO (Last In First Out) method
Complete build-up unit receiving process (operation overview)
recepit
process1 order
process2 dispatch
process3

[25]
1) Receipt process
1) Manufacturing→ 2) quality audit by MQ →3) Bar code scanning →4) parking slip drop to
the Car by looking of engine number and chasses number→5) parking address
generation→6) park in yard (stock)
2) Order process
7) Dealer fund from banker/stock/carriers availability → 8) HDOMS →7) wave → 9) frame
no. Allocation in wave → 10) allocation email to bank & operation team
3) Dispatch process
11) Load allocation→ 12) carrier allocation→ 13) loading picking generate→14) carrier
calling→15) loading/picking slip→16) parking slips hand over to driver/loading slip to
transporter→17) parking cars from slot PDI→18) park in loading lanes→19) check frame
detail→20) check carrier quality→ 21) loding→22) document generation→23) post load
check→24) key sealing→25) document handover to transporter→26) exit gate→27) delivery
to dealer→28) freight payment

[26]
Business process
1) Traditional process
2) New process
market
demand
sales
niguri
production
CBU
yard(inve-
ntory
manage-
ment)
dealer customer
market
demand
sales
niguri
producti-
on
CBU
yard(in
ventory
manage
ment)
RSY(re
-gional
stockya
-rd)
dealer customer

[27]
Practices Followed:
Market Demand
Sales Niguri
Production
Complete Build-
up Unit Yard
RegionalStock
Yard
Dealer
Customer

[28]
Key Challenges
 Collection of regional data.
 How to maintain customer demand
 Transportation delay
 Quantity cannot be measured accurately.
 Service measure is a big concern.
Objectives of the Research
 To study the supply chain of Honda cars.
 To study the Honda cars RSY.
 To study how to select RSY.
 To study the zone wise sales of Honda cars.
 To study which models are more sales in which zone
 To study the benefits of GST in supply chain.
Data sources
The task of data collection begins after a research problem has been defined and a research
design has been checked out. While deciding about the methods of data collection, the
researcher should keep in the mind two types of data:-
 Primary data
 Secondary data
Primary data are those data which are collected afresh and for the first time, and thus happen to be
original in the character.
Primary research involves the collection of original primary data by researchers. It is often
undertaken after researchers have gained some insight into an issue by reviewing secondary
research or by analyzing previously collected primary data.
The secondary data on the other hand, are those which have already been collected by
someone else and which have already been passing through the statistical process.
Data analysis and interpretation
Data analysis is an important part in any of the research as it fulfils the purpose for which
research is mode. In this part of my study the analysis of data is done from the basis of
information collected through the sales with the help of table and graphs.

[29]
TABLE-1
Honda cars India ltd. Sales data GNU plant 1APRIL 2016
Zone Total sales
EAST 805
WEST 940
NORTH 1973
SOUTH 1276
805
940
1973
1276
0
500
1000
1500
2000
2500
EAST WEST NORTH SOUTH
Total sales

[30]
PLANT 1 SALES DATA ZONE/MODELS WISE
ZONE/MODELS AMAZE
SALES
BRIO
SALES
CITY
SALES
CR-V
SALES
MOBILIO
SALES
EAST 433 41 329 2
WEST 348 51 552 16 3
NORTH 1241 26 694 11 1
SOUTH 359 48 853 15 1
According to sales data north and south zone sales is more as compare to east and west.
Honda plant 1 set up in north zone its cover north zone sales. In south zone there is no plant
or stock yards to covers the demand of cars in this region Honda car India ltd. Plan to set up
regional stock yards in south.
Regional stockyards is beneficial for both the point of view (customer and company) RSY
help to reduced delivery time (8 days to 4days). It is more helpful inventory management,
inventory planning etc.
433
41
329
2
348
51
552
16 3
1241
26
694
11 1
359
48
853
15 1
0
200
400
600
800
1000
1200
1400
AMAZE SALES BRIO SALES CITY SALES CR-V SALES MOBILIO SALES

[31]
South location sales
6 13 4
234
32
10
33
289
78
49
0
50
100
150
200
250
300
350
Total
SOUTH Location Total sales
Alappuzha 6
Anantapuramu 13
Asansol 4
BANGALORE 234
Bangalore 32
Belagavi 10
Calicut 33
CHENNAI 289
COCHIN 78
Coimbatore 49

[32]
South location/models wise sales
SOUTH
LOCATIONS/MODELS
AMAZE
SALES
CITY SALES BRIO SALES CR-V
ALAPPUZHA 6 2
ANANTAPURAMU 11 2
ASANSOL 4
BANGALORE 63 196 1
BELAGAVI 7 3
CALICUT 11 19 3
CHENNAI 48 224 13 4
In south zone sales data shows in south zone there are many location but the sales is more in
two location Bangalore and Chennai. and two models are more sales in south zone city and
amaze on the basis of last year sales data Honda plan to set up regional stockyards in Tamil
Nadu because its covers the sales of south zone and its helpful for inventory planning/
management, customer satisfaction etc.
0
50
100
150
200
250
AMAZE SALES
CITY SALES
BRIO SALES
CR-V

[33]
Honda cars April sales data plant-2
ZONE TOTAL SALES
EAST 267
WEST 1160
NORTH 1094
SOUTH 1371
Plant 2 zone/models wise sales
ZONE/MODELS BR-V SALES CITY SALES JAZZ SALES MOBILIO
SALES
EAST 55 136 73 3
WEST 131 854 170 5
NORTH 105 580 80 329
SOUTH 153 811 389 18
267
1160
1094
1371
TOTAL SALES
TOTAL SALES

[34]
In both the plants of Honda cars India ltd. South zone sales is more in this reason Honda plan
to set up RSY in south.
HONDA CARS RSY MAY SALES
Zone Model Total sales
SOUTH AMAZE 44
CITY 105
SOUTH Total 149
0
100
200
300
400
500
600
700
800
900
BR-V SALES CITY SALES JAZZ SALES MOBILIO SALES
EAST
WEST
NORTH
SOUTH
Total sales
SOUTH AMAZE
SOUTH CITY
(blank) (blank)

[35]
Learning and value addition:
RSY (regional stock yard)
Regional stock yard concept start in Honda car India ltd in May 2016. Honda cars first
Regional stock yard has been set up in Tamil Nadu and the stock yards would have a
capacity to stock 410 vehicles. In south amaze and city cars models are more sales.
Stock yard are structures that enclose an area to livestock within for a particular purpose
keep. Stock yards are built and used for a wide variety of purposes. Such purposes may
include loading out (for sales) or receiving (from purchases), for care (such as trimming
hooves, veterinary care, drenching, injecting etc), and stock take (counting). Stock yards can
be built of different materials, but usually would be of wood, wood and wire or metal
(reinforced steel) construction.
Stock yard is an act of storing the finished goods/cars so as to create maximum time utility at
minimum cost.
RSY means open the stock yards according to zone. The intention is to set up a least one
stock yard in each of the zone. Such a concept is important for vast country just like an India
and will reduce the waiting period for the customers.
Very often there is a mismatch between the variant and colour of a particular car that a
customer wants and the car that is available at the dealership. Setting up RSY will increasing
the availability of the car and reduced time of transports.
The concept of YMS holds a lot of potential and is fast establishing its roots in the country.
“Though the yard management is relatively new concept in it is now very well accepted. Ups
and downs in business cycles, seasonal fluctuations differences in demand and supplies, huge
variety, pressure to meet customer demand and severe competition have focused OEMs to
adopt the yard management concept gone after the pre delivery inspection were immediately
send to the customer and were rarely parked at the plant. Whether it is steel stock yard or auto
car sales stock yards, anticipating customer ‘demand sophisticated yard management is
gaining traction some companies manage their yard on their own and some are outsourcing to
3PLs”
The biggest challenges for the yard management in India are investment in real estates. Huge
land space in an easy to access location, close to highways and dust free area is needed.
Advantage of RSY
1) Speedy rolling of funding
2) Inventory planning
3) Lead time reduction
4) speedy deliver to the customer
5) Dealer stock reduction

[36]
Disadvantage of RSY
1) Increasing the cost of storing
2) Increasing the transportation cost
3) RSY Cars not back to plant yard.
4) Sell only RSY zone.
GST (goods and service tax)
What is goods and services tax?
GST is an evolution of the current tax regime, transforming the complex and cascading
structure into a unified value added system of taxation. Under value added tax would be levied
at every point of supply chain providing for credit for any / all taxes paid previously.
Keeping in line with the governance structure of the country GST would be levied
simultaneous by the centre and states (CGST AND SGCT respectively). All essential
characteristics in term of its structure, design applicability, etc would be common between
CGST AND SGST, across all states.
GST is expected to replace most of the current applicable indirect taxes as listed in the table
below.
TAXES SUBSUMED UNDER GST
Central taxes states taxes
1) Central excise duty 1) VAT/sales tax
2) Service tax 2) entertainment tax
3) Additional customs duty 3) entry tax
4) Surcharge and cesses 4) other tax and duties
Need of GST
 India needs GST to get rid of problems with the direct taxes. As multiple taxes like
CANVAT, central sales tax, states sales tax, octroi, etc. will not exist and will be
replaced by GST, and improve tax compliances.
 The complexity in determining the nature of transition, the inability of states to levy
tax on services, lack of uniformity in provision and rates, complexities in
administration, all could be withdrawn to an extent with the implementation of GST.
 More than 150 countries have adopted GST as it has the potential to raise revenue
with more transparency and neutrality.

[37]
There are three prime models of GST
 GST at central(union) government level only
 GST at state government level only
 GST at both, union and states government levels.
There are many positives and some negatives associated with this reduction in supply chain
Complexity.
Positives
 Bigger consolidation of demand at warehouses
 Reduced variation in demand at warehouses
 Improved inventory management
 Improved demand planning
 Reduced production complexity (less changeovers)
 Reduction in number of echelons in supply chain.
 Increase in truck load utilization (especially in primary freighting)
 Reduced cost for improving service level
Negatives
 Route planning becomes a challenge as warehouses have to deal with dealers in a
bigger geography
 Secondary freight cost will increase.
 Truck load utilization will reduce in secondary distribution.
 In lower lead times the service level will experience a little impact.
three prime
models of GST
central GST state GST Dual GST

[38]
Impact of GST
Implementation of GST will have significant impact and will change the manner in which
business is carried out in comparison with the ways of the current tax regime.
With a single rate being applied to all goods and services there will be a significant
redistribution of taxes across all categories resulting in reduction in taxes on manufactured
goods and hence impacting the pricing of the product.
Business implication of GST
Logistics and supply chains will therefore see a major change; sourcing, distribution and
stockyards decisions which are currently planned based on state level tax avoidance
mechanisms instead of operational efficiencies will be reorganized to leverage efficiencies of
scale, location and other factors relevant to the business.
Rationalization of Warehouses and Transport network
GST would eliminate the existing penalties on interstate sales transactions and facilitate
consolidation of vendors and suppliers. This will eliminate the need to have state wise
stockyards to avoid CST and the associated paperwork, leading to elimination of one extra,
redundant level of stockyards in the supply chain. This will result in a reduction in the
number of warehouses improved efficiencies, better control and reduction in inventory due to
lesser numbers of stocking points and cases of stock outs. This would allow a firm to take
advantage of economies of scale and consolidate warehouses at the same time reduce capital
deployed in the business. Larger warehouses can benefit from technological sophistication by
deploying state-of-the-art planning and warehousing systems which are not feasible in
smaller, scattered warehouses.
GST: the cost benefits
Yard management is likely to change considerably once the GST is phased in. the proposed
centralised tax system is widely perceived to quicken the pace of the development of yard
management in the India. This centralised tax will pave the way for largest regional hubs
serving multiple states.
Highlighting the current distribution strategy in the country which is predominantly driven by
complex taxation and not by logistics efficiency, “most of the vehicle distribution is based on
direct delivery from plant to dealers. GST shall result in new distribution network models and
possibly multi OEM automotive yards at key locations in India. These yards shall act as hubs
for regional distribution of smaller consignments of vehicles to nearby dealers.”
“With the implementation of GST, the need to have stock yard in every state is likely to
be mitigated in favour of larger and consolidated regional stock yard at strategic
location. Other cost benefits would include faster ROIs for IT spends. “

[39]
 Better inventory management
 More direct billing
 Lesser handling
 Lower compliance costs
Benefits of GST
1) To economy
A study by the national council of applied economic research estimated that roll out of the tax
would boost the GDP growth by anywhere between 0.9-1.7 percent. GST will boost up
economic unification of India. It will assist in better conformity and recover risk factor in
revenue generation and increase its flexibility.
2) To corporate
The industries will benefit the most form the arrival of GST as removal of cascading taxes
makes the manufacturing sector more competitive and reduces the tax compliance burden.
All entry taxes, including octroi will be subsumed in GST form the start. So with no
embedded tax costs on interstate movement of goods under the GST regime, and shift of the
taxation to the consumer ultimately, business would have more flexibility to revise their
supply chains process and thus, optimize logistics costs.
Usefulness of internship with future perspective
 How to handle stress on workplace.
 How to work in a team.
 Maintaining different records for different projects.
 How to follow office hierarchy
 How to utilize different resources on a given period of time.
 Proper time management
 Coordination with different teams.
Best practices and benchmark study:-
a) Major Companies in the respective industry sector:
 Hyundai
 Toyota
 Maruti Suzuki
 Chevrolet
 Tata

[40]
a) Market share of each company in the same industry sector:
 Honda- 5.4%
 Hyundai- 17.3%
 Toyota- 4.6%
 Maruti Suzuki- 47%
 Chevrolet- 6.5%
 Tata- 3.5%
b) Growth & Opportunities in the respective industry sector:
 Better job opportunity
 Better future growth & opportunity
 Opportunity to work with more qualified and experienced member.
 Ability to learn new technologies and concepts in an organization.
 To understand the market concept in terms of car manufacturing.

[41]
Recommendation and Suggestions
Suggestion
Regional stockyards in new concept for Honda Company but this concept helpful for
company to save time and energy of the company.
I think so Honda setting up a small new regional stock yard in west zone it is also beneficial
for company because in west zone sales of cars are too good. So it’s also help the company to
reduce lead time, it also help the improving working capital rotation of dealer etc.
I think the location of west RSY is suitable nearby Mumbai. Because
ZONE LOCATION TOTAL SALES
WEST AHMEDABAD 141
AHMEDNAGAR 8
SURAT 39
VADODARA 30
MUMBAI 306
KOHLAPUR 26
RAJKOT 13
PUNE 167
GOA 19
0
50
100
150
200
250
300
350
AHMEDABAD
AHMEDNAGAR
SURAT
VADODARA
MUMBAI
KOHLAPUR
RAJKOT
PUNE
GOA
WEST
TOTAL SALES
TOTAL SALES

[42]
Regional stockyards is a combination of two words regional and stockyards regional means
locations and stockyards means Stock yard are structures that enclose an area to livestock
within for a particular purpose keep. Regional stockyards means set up stockyards according
to zone wise it is important for vast country just like India and it helpful for customer because
it reduced waiting time of customer.
Honda cars India ltd. decide to set up RSY on the bases of sales data analyses we analyzed
the last year sales data after that we find out which zone sales is more and after that take on
decision for set up stockyard. Before taking a decision of set up stockyards also see the GST
because it plays main role in supply chain of company
I think RSY concept is beneficial for company and customer both because:-
“Normally we send at least 8-10 cars in a trailer. It consuming more time and energy. But by
using the railways we will be able to sends at least 270 or more vehicles in one time to the
stock yards from the manufacturing plant,” in this reason Honda open RSY because it save
time and energy of a company.
The RSY would help the company reduced the time frame in distributing the vehicles to the
dealers and bring in more efficiency. At present it took at least 8-10 days to send vehicles
from Gr. Noida plant for dealer in Chennai but with the setting up of the stockyards, it would
increase the distribution efficiency significantly reducing the time frame in vehicle delivery.
In case Honda cars India ltd. I think Regional stock yards are important because the Honda
cars sales is large in north and south zone the plant of Honda cars is set up in north zone. the
north zone sales are cover GNU Honda plant but in south zone there is no manufacturing
plant of Honda cars in this reason Honda open RSY in south zone. It is beneficial for Honda
company because:
1) It help Speedy rolling of funding
2) It help Inventory planning
3) It help Lead time reduction
4) It help speedy deliver to the customer
5) It help Dealer stock reduction
6) It help Logistics capacity build up
7) It help Improving working capital rotation of dealers
Before the setting up stockyards to know about the GST is very important because GST play
very important role in supply chain design of a company.
The GST system is basically structure to simplify current indirect tax system in India. A well
designed GST is an attractive method to get rid of deformations of the existing process of
multiple taxation.
GST played a major role in deciding the supply chain network design. With the elimination
of CST in GST- tax would not deciding factor on supply chain network design and the
necessary of having stockyards in each states to avoid CST would be eliminated.

[43]
With GST regime, the supply chain network design would be purely based on logistics cost
and customer services provides greater flexibility into supply and demand matching.
GST also improves the transit and consequently delivery time because of state border
crossing is likely to be simplified.
“Most of the vehicle distribution is based on direct delivery from plant to dealers. GST shall
result in new distribution network models and possibly multi OEM automotive yards at key
locations in India. These yards shall act as hubs for regional distribution of smaller
consignments of vehicles to nearby dealers.”
Questionnaire:-
question yes No N/A

[44]
1) Are these policies and procedures clearly stated and
systematically communicated?
2) Do these policies and procedures support internal
control?
3) *Are receiving, issuing, accounting and storing
responsibilities properly segregated?
4) *Has management taken the appropriate steps to
safeguard goods against risk of loss by theft (e.g.,
goods kept in locked buildings, rooms, or cages,
access to which is granted only to authorize
personnel)?
5) Are detailed perpetual inventory records periodically
reviewed for slow-moving items?
6) Is a perpetual inventory system (including quantities
and value) in use as to all major classes of inventory?
7) Are perpetual inventory records updated promptly?
8) *Are all classes of inventory items physically counted
annually (triennially if there are perpetual records)?
9) *Is adequate provision made for obsolete and inactive
items in inventories?
10) Regional stockyard is helpful for customer or
company

[45]
Bibliography:
www.google.com
www.wikipedia.org
www.scribd.com
www.hondacarindia.com
www.slideshare.net

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