ABM Estate Investment & Finance: Supply Chain System and Practices

This report provides an analysis of ABM Estate Investment and Finance's supply chain system. It begins with an introduction to ABM, highlighting its position as a large, privately-owned construction firm in New Delhi. The report examines their target markets, including both B2B (out-of-state investors) and B2C (local customers), and their marketing strategies. The analysis delves into the company's implementation of lean techniques, such as increased visualization and continuous feedback loops, to improve efficiency and reduce waste. It also discusses their use of a 3PL company, Lucky Logistics, for outsourcing transportation. The report further evaluates ABM's relationship management with both suppliers and customers, noting the benefits of long-standing relationships with major suppliers and the advantages of providing in-house loan assistance and warranties to customers. The report concludes by highlighting customer satisfaction rates based on company surveys.

The girl’s transcription
Good afternoon everyone. I’m Hang this is prav. Today we are going to talk about ABM Estate
investment and finance supply chain systemWe will analyse their current model, practices ,lean
techniques that they use supplier base, cutomer relationship and we will finish off with our personal
recommendations for the company. So just the quick introduction to ABM Estate investment and
finance and who they are. ABM Is one of the largest privately owned family construction firms
inin New dellhi . founded in 1999 by mr Balbir singh.. ABM provides fresh;y built condominiums
CONDAUMINIEM and apartments in and around New delhi . According to their financial report in
2015, their annual turn over was £7
Moving on to scales and scope they target at both b2b who are out of state investment buyers and
B2c who are local new delhicustomerIn order to sell properties they advertise their constructions via
newspaper , tele marketing and wordof mouth. Over the past 15 years They have succefully
executed arould 5 big projects over the x\vx
With the increased competition in construction projects, the company is continuing to search for
ways of eliminating waste and increasing profit (Mastroianni and Abdelhamid 2003). Therefore ABM
decided to implement the increased visualization lean tool which is about communicating key
information effectivelyto the workforce through posting various signs and labels around the
construction site.. This tool is similar to the lean manufacturingtool, Visual Controls, which
increase the efficiency and effectiveness of a process by making the steps in that process more
visible. In order to implement the Increased Visualization A safety meeting will be held on the job
site at the beginning of the project for staff and workers. The importance of safe practices for the
company are emphasized and people give feedback on different safe practices on the job site. A
commitment to safety is signed by all attendants. Besides, Workers could provide new ideas and
create safety signs in order to increase their involvement in the process.
Moreover Completion dates are also visible . for example when the expected pouring dates are
decided signs including pouring sequence and completion dates will be posted on the pouring
pots for each floor also placed on the retaining wall.
Besides, The company employs a continuous feedback loop which a lean technique to obtain
continuous performance improvement. Basically ABM designs a survey consisting of 6 question and
send the survey to cus after a full transaction took place or after maintain services during the
warranty period.. Then they keep the feedback going and share the results with suppliers and
engineers
Finally As mention above abm employ a 3pl company called (Lucky Logistics to outsource
transportation when ever they got a project the contractors calculate the right amount of materials
they need for different building stages and send orders to the 3PL then the 3PL delivery each
material and despatches them to the site. At the end of the billing period, the company receive
one invoice for the services used
Supplier located near key highways linked with customers location which mean Big truck can
navigate easily and enable transport productivit
So after looking at ABM current model and strategies we pick out some of the main ads.

The girl’s transcription
To start off Supplier located near key highways linked with construction sites which mean Big
truck can navigate easily and enables transport productivity
Besides, with utilising increased visualisation, it requires
Low investment. Information is simplified and can be understood by anyone from top manager to
operator line. Which allows transparency in working as well as increase awareness of supervisory
and control personnel, eliminate non value added activities
Furthermore The reason for ABM to utilise continuous feedback loop because it is easy to carry out,
not time consuming and provide insight into how satisfied or unsatisfied customers are with the
business. As a result, they could eliminate defects rate, provide perfect value to the customer
through a perfect value creation process and improve ABM offerings in the eyes of their customer,
.Finally as the firm Outsource the logistics When it comes to investment, not having to purchase
trucks and maintain staffs can be a big cost-saving measure. Also, since the 3pl provides good
delivery schedules by ensuring that materials ABM needs are available as needed it could improve
workflow at the firm’s construction sites, save precious time and allow them to dedicate their
energy to completing the construction project on time.
Then we gonna discuss relationship management with suppliers.
At the moment All the commodities have more than one source. ABM is sourcing same raw
materials from both local suppliers and interstate suppliers. The company have long standing
relationships with major suppliers in Rajasthan and western state of Gujarat, and they normally
source materials and do bulk purchasing for big projects from major suppliers. Therefore the they
have power to negotiate price to some extend. besides, Short term buying done from local vendors
with long term ties but not to the same level as the major suppliers. As this is only done
Occasionally, when the company carry out repair or maintain services requiring a small amount of
materials. Of course, local sourcing does offer obvious cost benefits in itself. Supply chains are
generally shorter with local suppliers, which leads to greater certainty and predictability of delivery
times. Lower delivery costs defects created during delivery
However, commodities Price could be little bit higher compare to prices that ABM major suppliers
offer since local vendors are small businesses they could not compete with big player.
In addition due to utilising continuous feedback loop. ABM could be able to give good feed back to
their suppliers , and provide their suppliers with a better idea of what kind of materials they are
looking for. beside to purchase high quality raw materials there are some policies and product
standardisations included in the contract which giving suppliers a detailed picture of what quality
level the company wants. Therefore, it could create agile and effective supply chain as the company
and their suppliers are sharing same visions.

The girl’s transcription
Moving on to relationship and management with customers
Firstly, with customers those buying buildings from ABM investment and finance, they don’t have
to worry about obtaining loans on the property. all they have to do is to give the company their
financial details and ABM will deal with the bank and get the loan sponsors for them. As the
company will take care of it, customers don’t have to worry about going to the bank, taking a day off
and trying to obtain the loans from different banks. Due to providing customers with convenience,
This could become a competitive advantage over their competitor and build a good reputation for
the firm and gradually increase their rate of properties sold
secondly, ABM also offers 2 years warranty which protects customers and their properties from the
majority of structural defects that may arise. Which guarantee the quality of infrastructures they
involve in and establish Trust relationship with their customer. However, it could mean they have to
cover the cost of activities that does not generating income and profit
In addition As they keep customer feedback going, and identify stage that improvement could be
done from the customers’ perspective , Accoding to the company survey, 83% of their customer
say they are very satisfied, 10% say things could be improved and only 7% said they were un happy
with the service they were getting which mean the company is likely to be able to retain loyal
customers