CASE STUDY

Inventory management is the component of supply chain management that tracks and supervises
noncapitalized assets -- or inventory -- and stock items. Inventory management systems oversee
the flow of goods from manufacturers to warehouses and from these facilities to the point of sale
(POS). A key function of these systems is to keep a detailed record of each new or returned
product as it enters or leaves a warehouse or POS. Organizations from small to large businesses
can make use of inventory management to track the flow of goods and inventory turnover. There
are numerous inventory management techniques that enable businesses to deliver the right
amount of the correct product to the right place on time. Inventory control is a separate area of
inventory management. It focuses on minimizing the total cost of inventory, while maximizing
the ability to provide customers with products in a timely manner. In some countries, the two
terms are used synonymously. Effective inventory management lets businesses balance the
amount of inventory they have coming in and going out. The better a business controls its
inventory, the more money it can save in business operations.

A business that has too much stock has what's referred to as overstock. Overstocked businesses
have money tied up in inventory, limiting cash flow, increasing holding costs and potentially
creating a budget deficit. This overstocked inventory, which is also called dead stock, often sits
in storage, unable to be sold and eating into the business's profit margin. But, if a business
doesn't have enough inventory, it can result in shortages that negatively affect customer service.
Lack of inventory causes delays in responding to customer orders and can result in lost sales.
Customers are apt to look elsewhere when told a product isn't in stock and has to be back-
ordered. An inventory management system can help businesses strike the balance between being
under- and overstocked for optimal efficiency and profitability.

Inventory management offers several key benefits, including cost reduction, insight into future
trends, and enhanced customer satisfaction. While there are upfront costs associated with setting
up inventory management systems, these are outweighed by long-term savings due to more
efficient inventory levels and optimized storage. Inventory management systems also provide
valuable tools for analyzing sales, predicting future trends, and meeting customer needs.
Additionally, features like inventory, transport, and delivery tracking contribute to timely
transactions and an improved customer experience. Furthermore, advanced software capabilities,
such as real-time inventory tracking using RFID tags and IoT devices, help supply chain
managers monitor goods in transit, optimize storage, and maintain strong relationships with
suppliers and shippers.

However, inventory management systems also present challenges, particularly in the areas of
setup costs, data accuracy, and system integration. The initial investment and startup costs can be
burdensome, especially for small and midsize businesses. Traditional inventory software that
relies on manual data entry is prone to errors and inconsistencies, which can compromise the
system's effectiveness. Integrating inventory management platforms with existing systems, like
sales and customer relationship management applications, often requires complex configurations
and specialized expertise. Additionally, large warehouses and storage locations pose challenges
in tracking inventory and locating products efficiently. Training employees to use these
advanced systems can be difficult, and user adoption may be slow, further complicating the
transition to a new inventory management process.

1.1 Warehouse details

In this study, we focus on the warehouse managed by Patil Developer and Builder, situated in
Bhusawal, Maharashtra. This warehouse plays a pivotal role in the company’s supply chain
operations. As a key logistical center, it is responsible for the storage, management, and
distribution of construction materials required for various ongoing projects.

Patil Developer and Builder utilizes this warehouse to ensure a steady and efficient flow of
materials to its numerous construction sites. The warehouse’s operations include receiving
incoming materials, organizing and storing them appropriately, and preparing them for
distribution. By maintaining an organized inventory and efficient distribution system, the
warehouse supports the company’s construction activities, ensuring that materials are readily
available when needed and thereby contributing to the timely progression of construction
projects.

The focus of this case study is to analyze the inventory management practices within this
warehouse, with the aim of identifying key challenges and opportunities for improvement. By
examining the processes and systems in place, we seek to understand how effectively the
warehouse supports the company’s overall operations and to propose recommendations for
enhancing efficiency and effectiveness in material handling and distribution.

Site 1:

N B Bhalchandra Akashvan

Fig. 4.1 3rd eye view of the actual site

4.2 SITE DETAILS
 Name of site: N B Bhalchandra Akashvan
 Location of site: Punawale, Pune, Maharashtra 411035
 A G+21 proposed building
 Owner and Developer: Nandkumar Bhalchandra Bhondve
 Architect: Samarth Chintamani Properties
 Cost of project: 64 Lakhs per Flat Onwards
 Structural Engineer: JW consultant
 Builder : N B Bhondve Group
 Area: 2.29 Acres
 The residential building has No of Towers: 1, Towers No. of Floors: 21 Floors, No. of
Units: 317 Units.
 This project is based on a sustainable structure
 Present condition of the project: under construction
 Possession March 2025
1.3 N B Bhalchandra Akashvan by NB Bhondve group

Fig. 4.2 plan

 Fig 4.3 Plan

Fig 4.4 PLAN (2BHK)

Bhalchandra Akashvan is a residential development in Punawale, Pune. The project is built by
Samarth Chintamani Properties NB Bhondve Group. They provide 2BHK, 3BHK apartments
with all necessities.

Site 2:

PRIDE PURPLE SQUARE

About 19 years ago, we set out on an endeavour to redefine the premium and luxury
housing experience for Pune. With a drive to build and provide ultramodern projects to Pune, we
focused on delivering living spaces that are at par with upcoming trends and standards. While we
were at it, we also kept devising new ways to integrate a sense of holistic community living
amongst Pride Purple residents. With a strong foundation in the world of apartments, row
houses, bungalows, commercial plazas, convention centres and hotels, today, we are
synonymous with luxury and premium living. Pride Purple Square is a commercial development
by Pride Purple Group. It is located in Wakad, Pune. It offers spacious and skill-fully designed
Shops, Showrooms and Offices. The project is well equipped with all the amenities to facilitate
the needs of the business owners.
Specifications

 Large Floor
 Large Column Grid
 High Speed Elevators
 Designer Entrance Lobby
 100% Power Back-up
 Fire and Smoke Detectors in parking and common area
 Ample Parking Space
 Ground and First Floor dedicated for Shops and Showrooms
Amenities

 Large Floor
 Large Column gride
 High speed Elevators
 Designer Entrance Lobby
 100% Power Backup
 Fire & Smoke detectors in Parking & common area
 Ample Parking Space
 Ground & First Floor dedicated for Shops & Showrooms
 The growth of a business depends a lot on its location. And the prime location of Pride
Purple commercial spaces gives your business exactly what it needs. Offices here will enjoy easy
connectivity to prime destinations, while the shops will enjoy a lot of customer attention!
1.2 Summary

In this study, we examine the warehouse operated by Patil Developer and Builder, located in
Bhusawal, Maharashtra. This facility is integral to the company's logistics and supply chain
operations, serving as the central hub for managing and distributing construction materials
necessary for various ongoing projects. The efficiency of this warehouse directly impacts the
timely progress and successful completion of these projects.

Warehouse name: Patil developer and builder

Owner: Mr. Prashant Patil and Mr. Prajakt Patil

GST no: 27BMVPP9642R1ZK

Warehouse Operations and Supply Chain Management

The warehouse plays a crucial role in ensuring a steady and efficient flow of materials to the
company's construction sites. Its operations encompass several key functions:

1. Receiving Materials: The warehouse is equipped to handle incoming shipments of

construction materials from suppliers. This includes verifying the quantity and quality of
the materials received and updating inventory records accordingly.

2. Organizing and Storing: Once materials are received, they are organized and stored in
designated areas within the warehouse. Proper organization is critical to ensure that
materials are easily accessible and to prevent any mix-ups or delays in retrieval.

3. Inventory Management: The warehouse maintains an organized inventory system to

track stock levels, manage reorder points, and prevent overstocking or stockouts. This
system is essential for ensuring that materials are available when needed for ongoing
construction projects.

4. Preparing for Distribution: When materials are required at various construction sites,
the warehouse staff prepare the orders, ensuring that all items are correctly picked,
packed, and dispatched in a timely manner. This includes coordinating logistics for
transportation and ensuring that materials reach the construction sites as scheduled.

Supply to Construction Sites

The warehouse’s efficiency is demonstrated through its support of two specific construction
sites:

Site 1: N B Bhalchandra Akashvan, Pune

Description: N B Bhalchandra Akashvan is a luxury residential development characterized by

private gardens, open spaces, and elegant living environments. The project includes well-
designed homes that offer comfort, luxury, and style.
Material Supply: For N B Bhalchandra Akashvan, the warehouse supplies a range of high-
quality construction materials tailored to the luxury standards of the development. This includes
premium finishes, landscaping materials, and other construction essentials. The warehouse
ensures that these materials are delivered in accordance with the project timeline, contributing to
the high standards and timely completion of the luxury homes.

 Logistical Coordination: The warehouse coordinates with the construction site to

schedule deliveries, ensuring that materials are supplied as needed for different stages of
construction. This includes managing inventory to handle specific requirements for
upscale finishes and ensuring that deliveries align with the construction schedule.

 Quality Control: Given the high-end nature of the N B Bhalchandra Akashvan project,
quality control is a priority. The warehouse verifies that all materials meet the specified
standards before dispatching them to the site.

Site 2: Pride purple square, Pune

Description: Pride purple square is a residential project offering modern apartments with
amenities designed for comfortable and contemporary living. Located in a posh locality, the
development features 1 BHK and 2 BHK units with a resort-like environment.

Material Supply: The warehouse supports the Pride purple square project by providing
materials necessary for constructing and finishing the apartments. This includes standard
construction materials as well as specific items needed to create a modern, comfortable living
environment.

 Inventory Management: The warehouse ensures that the supply of materials such as
plumbing fixtures, electrical components, and finishing products is managed efficiently to
avoid delays. It maintains accurate inventory records to handle the needs of the project
seamlessly.

 Distribution Efficiency: The warehouse schedules deliveries to align with the

construction phases, ensuring that materials are available when needed for various
aspects of the project. This includes managing the logistics of transporting materials to
 the site and coordinating with on-site teams to address any issues or changes in
requirements.

Inventory Management and Distribution Process

1. Start
o Begin the process of inventory management and distribution.

2. Receiving Materials
o Step 1: Receive Shipment
o Step 2: Verify Quantity and Quality
o Step 3: Update Inventory Records

3. Organizing and Storing

o Step 1: Organize Materials
o Step 2: Store Materials in Designated Areas

4. Inventory Management
o Step 1: Track Stock Levels
o Step 2: Monitor Reorder Points
o Step 3: Prevent Overstocking and Stockouts

5. Preparing for Distribution

o Step 1: Receive Order Requests from Construction Sites
o Step 2: Pick Materials from Inventory
o Step 3: Pack Materials for Dispatch
o Step 4: Schedule Transportation

6. Distribution to Construction Sites

o Site 1: N B Bhalchandra Akashvan
 Step 1: Coordinate Delivery Schedule
 Step 2: Ensure Quality Control
o Site 2: Pride purple square
  Step 1: Coordinate Delivery Schedule
 Step 2: Ensure Quality Control

7. End
o Complete the distribution process and return to inventory management.
Flowchart Layout:
Receive
Shipment
Receiving Process box with Verify Quantity
Materials sub-steps: and Quality
Update Inventory
Records
Organize
Organizing and Process box with Materials
Storing sub-steps Store Materials in
Designated Areas
Track Stock
Levels

Inventory Process box with Monitor Reorder

Management sub-steps: Points
Prevent
Overstocking and
Stockouts
Receive Order
Requests
Start

Pick Materials
Preparing for Process box with
Distribution sub-steps:
Pack Materials
Decision box
leading to two Schedule
Distribution to branches for N B Transportation
Construction Bhalchandra
Sites Aakashvan and
Pride purple
square
Coordinate
Delivery
N B Bhalchandra Process box with Schedule
Aakashvan sub-steps:
Ensure Quality
Control
Coordinate
Delivery
Pride purple Process box with Schedule
square sub-steps: Ensure Quality
Contro
End
.
Manpower allocation
Department/Task Number of
Role
People
Receiving Materials Receiving Clerks 4-6
Inventory Data Entry Operators 2-3
Organizing and Storing Warehouse Associates 6-8
Picking and Packing Picking Staff 6-8
Packing Staff 4-6
Logistics and Distribution Logistics Coordinators 2-3
Dispatch Staff 4-5
Quality Control Quality Control Inspectors 2-3
Administrative and Support Inventory Manager 1-2
Administrative Assistants 2-3
Maintenance and Safety Maintenance Technicians 2-3
Safety Officers 2

Estimated bill samples

Sample 1:
T
o,
M/S Patil Developer & Builder, Invoice no: SB/0693/22-23 Dt: 19-
Bhusawal May-22
Mobile no: 9766602779 E-way bill: 281431835399
Email: LR/Vehicle No: MH19S9980
GST TIN: 27BMVPP9642R1ZK DC No:
Place of Supply: Maharashtra (Code:
PAN No: 27)

G
Sr Quant Rat Disc
Particulars HSN S Amount
. ity e %
T
107
1 SS 110mm x 3mtr SWR PIPE 39172390 18 20 46 11556
0
2 SS 75mm x 3mtr SWR PIPE 39172390 18 28 596 46 9011.52
3 S 50mm x 3mtr Pvc Pipe 39172390 18 15 381 35 3714.75
4 Bend 87.5 110mm 39172400 18 12 190 42 1326.576
 .6
253
5 Plain T 110mm 39172400 18 2 42 293.596
.1
314
6 Door T 110mm 39172400 18 8 42 1457.424
.1
160
7 Bend 45 110mm 39172400 18 10 42 930.9
.5
33.
8 Pipe Clip 110mm 39172400 18 100 42 1919.8
1
39.
9 Vent Cowl 110mm 39172400 18 2 42 46.284
9
164
10 Door T 75mm 39172400 18 8 42 761.424
.1
94.
11 Bend 87.5 75mm 39172400 18 10 42 547.52
4
139
12 Plain T 75mm 39172400 18 5 42 405.42
.8
74.
13 Bend 45* 75mm 39172400 18 10 42 429.78
1
74.
14 Bend 45* 75mm 39172400 18 8 42 343.824
1
26.
15 Vent cowl 75 mm 39172400 18 3 42 45.936
4
94.
16 Bend 87.5* 75mm 39172400 18 5 42 273.76
4
167
17 Single Y 75mm 39172400 18 6 42 582.204
.3
117
18 Door Bend 75mm 39172400 18 6 42 408.204
.3
22.
19 Pipe Clip 75mm 39172400 18 120 42 1593.84
9
190
20 Bend 87.5-110mm 39172400 18 6 42 663.288
.6
21 S 40mm x 3mt Pvc Pipe 39172400 18 3 256 35 499.2
28.
22 40mm ELBOW 39172400 18 14 25 297.15
3
35.
23 50mm ELBOW 39172400 18 50 25 1342.5
8
35.
24 Bend 45*50mm 39172400 18 10 25 268.5
8
46.
25 CEMENT SOLVENT 250ML 39172400 18 3 139.8
6
26 LUBRICANT 250GM 39172400 18 5 34 170
52.
27 50mm TEE 39172400 18 5 25 198.375
9
 CPVC 40mm (1 112") x 3mt 806
28 39172400 18 15 36 7738.56
PIPE SDR 13.5 .1
CPVC 25mm (1") x 3mt PIPE
29 39172400 18 17 393 36 4275.84
SDR 13.5
CPVC 20mm (3\4") x 3mt PIPE 284
30 39172400 18 110 36 20000.64
SDR 13.5 .1
CPVC RTEE 40 x 25mm (1 1\2 x 159
31 39172400 18 2 30 223.72
1") .8
32 CPVC END CAP 40mm (1 1/2") 39172400 18 5 49 30 171.5
13.
33 CPVC METAL CLIP 1 112" 39172400 18 100 25 982.5
1
34 CPVC TEE 40mm (1 1/2") 39172400 18 5 141 30 493.5
CPVC BALL VALVE 40mm (1 658
35 39172400 18 3 30 1382.64
1/2") .4
36 CPVC ELBOW 90° 25mm (1") 39172400 18 40 29 30 812
37.
37 CPVC TEE 25mm (1") 39172400 18 50 30 1312.5
5
CPVC RBUSH 25 x 20mm (1 x 15.
38 39172400 18 15 30 164.85
3/4") 7
39 CPVC MTA 25mm (1") 39172400 18 15 26 30 273
CBVC RED ELBOW 25 x 38.
40 39172400 18 15 30 408.45
20mm (1 x 3\4") 9
Total
amou 77467.275
nt

Sample 2:
To,
M/S Patil Developer & Builder,
Bhusawal Invoice no: Dt:
Mobile no: 9766602779 E-way bill:
Email: LR/Vehicle No: MH19S9980
GST TIN: 27BMVPP9642R1ZK DC No:
Place of Supply: Maharashtra (Code:
PAN No: 27)

GS Quanti Weigh Amoun

Sr. Particulars HSN Rate
T ty t t
217.00
1 G.P. COILS 72104900 18 76 16492
0
133.00
2 SHAPE & SECTION 72169100 18 71 9443
0
203.00
3 U SECTION 72163100 18 72 14616
0
 4 M.S. SPRING WIRE 73201019 18 98.000 78 7644
21431.
5 G.P. SHEETS 72104900 18 264.59 81
79
Total
69626.
amou
79
nt

Conclusion

In summary, the Patil Developer and Builder warehouse in Bhusawal serves as a critical
component of the company’s supply chain, facilitating the efficient distribution of construction
materials to various sites. For the N B Bhalchandra Akashvan and Pride purple square projects,
the warehouse’s role includes managing inventory, coordinating deliveries, and ensuring that
materials meet the quality and timing requirements of these developments. By maintaining a
well-organized inventory system and efficient distribution processes, the warehouse supports the
successful execution of construction projects, contributing to their timely completion and overall
quality.