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A
PROJECT REPORT ON
WAREHOUSING & DISTRIBUTION IN SUPPY CHAIN MANAGEMENT
AT
Submitted in partial fulfillment of the requirements for award of
Post Graduate Diploma in Materials &Logistics management
SUBMITTED TO:
UNIVERSITY OF PUNE
SUBMITTED BY:
GANESH M. MOHITE
PGDMLM
(2010-2011)
SINHGAD BUSINESS SCHOOL, PUNE.
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ACKNOWLEDGEMENT
Thanking is formality and sometimes a necessity, nevertheless an
essential part of any project report. The list of expression of thanks no matter how
extrusive is always incomplete and inadequate. This acknowledgement is no exception.
One of the best parts of writing a project report is the opportunity to thank those who
have contributed to it. This project report has been made possible through direct and
indirect
Co-operation of various people. I specially with to acknowledge the following people
who reviewed the project. Thank for the most perspective and helpful comments.
I sincerely thank to Prof. Santosh Singh for his support and valuable guidance in reviewing
the project form time. I also express my gratitude to my friends who helps me throughout the
project.
GANESH M. MOHITE.
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PERFACE
Summer training is an integral part of our academic curriculum. During the training, a
student gets an opportunity to understand the practical aspect of theory. Training makes the
concept clearer.
This project report is the outcome of the training that I have undergone at
SAFXPRESS PVT. LTD. for the partial fulfillment of Post graduate
Diploma in Foreign Trade.
The topic allotted to me by the company is WAREHOUSING & DISTRIBUTION IN
SUPPLY CHAIN MANAGEMENT.
The project emphasizes on the warehousing and distribution in supply chain management
done by the company.
I have tried to my best to make a good report. However; no one can claim perfection in its
entirety .So I apologize for the discrepancy, if any, crept in. Preparation of project requires
perseverance, initiatives, proper guidance and direction. So it is mandatory to take the aid of
various departments.
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TABELS OF CONTENTS
Sr. No. Contents Page No.
1 Introduction 1-14
1.1 Company profile
1.2 Type of business
1.3 Safexpress services
1.4 Future expansion
2 Supply Chain Management
15-20
2.1 Meaning
2.2 SCM by Robert Handfield
2.3 Components of SCM
3 Case Study
21-27
Dabbewalas of Mumbai
4 Warehousing 28-31
5 FQAs
32-38
6 Conclusion
39
7 Bibliography
40
1
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Chapter - 1
INTRODUCTION
Company Profile
Types of Business
Safexpress Services
Future Expansion
Companys Turnover & Achievements
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Company Profile
Founded in 1916, J. M. Baxi & Co. is the largest, most efficientand professionally managed Shipping Agency House in India.
The Company has a strong presence in most of its business lines andleadership in several of the shipping support services.
The future plans are focussed on consolidating the existing activitiesand developing other shipping related areas as well.
J. M. Baxi & Co. is transforming its business strategies and newinitiatives into opportunities for future growth by focusing on three keyaspects
Innovation
is more than just a buzz word for us. It is our way to translate lateral thinking into actionableprocesses that will contribute to how we improve on existing techniques and provide value-addedservices to our customers.
The process of innovation is all encompassing and no area of activity in J. M. Baxi & Co. is out of itspurview. The steps could be simple and progressively incremental. The endeavour to constantlybetter the best is a continuous driver to achieving improvements in the way we think and act.
Commitment
Commitment is striving to meet the current as well as future needs and expectations of ourcustomers. It means a complete dedication to our areas of functional responsibility and beyond.
At J. M. Baxi & Co., every employee stands committed to deliver with diligence a result orientedperformance that contributes synergistically to the overall growth of the organization throughcustomer satisfaction. In being committed to goals and achieving them, our employees enhance theirself-esteem vis-a vis our business partners and associates.
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Performance
Performance emerges out of commitment. Corporate Performance Management takes into considerationthe integration of performances of various measurable attributes that are responsible for the growth andsustainability of an organization. Performance means measured steps to profitable growth.
At J. M. Baxi & Co. we measure performance on a continuous basis and set benchmarks on par with the best inthe industry. We encourage our employees to set stretchable yet achievable goals and provide them with allthe means to meet and even exceed expectations.
Through Innovation, Commitment and Performance, we ensure mutually beneficial growth through customersatisfaction.
Competitive Advantage
Strong brand image in the maritime domain. A professionally managed Company offering specialized maritime services to Ship owners, Principals,
Exporters and Importers.
High level of confidence among Clients and Principals
About 2000 experienced professionals and specialists nationwide.
Wide range of maritime logistics services, unmatched in the industry.
Consistency in quality of services offered and total commitment to our clients.
ISO 9001 - 2008 Certification by DNV.
Award winning performances in most business activities.
Nationwide network of own offices at 56 port & inland locations, equipped with round-the-clockCommunication Network.
Modern infrastructure facilities provide comprehensive logistics support.
HISTORY
MISSION
TYPE OF BUSINESS
.
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SERVICES OFFERED BY J.M. BAXI & CO.
SERVICES / SHIPPING AGENCY
We handle over 6000 vessels per annum at various Indian ports. These include: Tankers
(VLCC/Crude/Products), LPG, LNG & Ammonia carriers, Bulk Cargo vessels, Container vessels, Break Bulk Liner
vessels, Car carrier vessels, Cruise vessels, Naval vessels, Dredgers, Lash vessels, Offshore & onshore rigs,
heavy lift cum submersible vessels, Supply vessels and helicopters.
The scope of our services comprehensively covers all requirements of the vessel. We offer services to vessels
at all major and minor ports on the east and west coasts of India.We offer value-added services as Owners Protective Agents and also Ship Lay-up Services at various port
locations.
Currently, over 200 national and international Principals avail of our Agency services - a measure of theirconfidence in our abilities.
AGENCY SERVICES FOR CRUISE & VISITING NAVAL SHIPS
Armed with years of experience and expertise, our professionals and Master Mariners are fully geared to
handle all types of cruise and visiting Naval ships at any port in India. Special arrangements include handling
of passengers, crew, naval personnel both for embarking and disembarking operations. We maintain close
liaison with port authorities, related government agencies, tourist bureaus, passenger handling companies, as
well as, the Indian Navy.
CONTAINER TRANSPORT MANAGEMENT
With most of the liner cargo moving by containers, a separate cell has been established to handle containers
at all major ports. Container Freight Stations and Inland Container Depots are equipped with our own
sophisticated equipment such as Top Lifters and Trailers.
We offer turnkey offshore and shore based support facilities for major international & national clients in the
oil and gas business sectors, notably at Bhavnagar & Mumbai.
We are also active in the bidding process of developing new ports, terminals & jetties at other locations aswell.
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PORT DEVELOPMENT & TERMINAL MANAGEMENT
J. M. Baxi & Co. is India's first privately owned company to run its own terminal in the port sector in India. It
was developed a Bulk terminal at Rozi, Jamnagar since 1998.
In 2003, the first container terminal at Visakhapatnam port was set up and is now fully operational. J. M. Baxi
& Co. is India's first privately owned company to run its own terminal in the port sector in India. It was
developed a Bulk terminal at Rozi, Jamnagar since 1998.
PROJECT LOGISTICS DIVISION
The Project Logistics Division of J. M. Baxi & Co. specializes in professional logistics services for a wide range
of project equipment including Heavy Lifts and Over Dimensional Cargo (ODC) on a turnkey and door-to-door
basis which includes sea freight and inland transportation from the manufacturing facility to the project site.
The Division is the single source of a range of comprehensive value-added services necessary for the efficient
and safe transport of project cargo - an advantage for our clients. The Division is SAP enabled for all its
operations and extensively uses AUTOCAD for detailed planning of logistics for movement of Heavy Lifts &
ODCs.
The project logistics involves detailed planning and scheduling to contend with the exigencies of terrain,distances and environment, thereby involving multi-modal transport operations - sea, road, rail and river.
ENGINEERING, EQUIPMENT & TRAINING DIVISION
The Division provides services to clients by undertaking engineering, erection and fabrication assignments. Thestate-of-the-art own equipment, sourced from reputed foreign and Indian manufacturers, includes a range of
telescopic cranes, all terrain cranes, hydro-excavators, forklifts and other specialized equipment that are
available on contract. The Division has an added strength in providing Simulator based training and on-site
training to hone the operational skills of its personnel to perform challenging tasks with efficiency and total
safety.
The Division also offers simulator training and hands-on training to experienced crane operators of other
organizations to hone their skills.These facilities are also available to fresh crane operators as well.The training comprehensively covers all aspects of crane operation.
TANKER OPERATIONS
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A separate tanker cell with experienced personnel handles a large number of tankers at various ports such as
Mumbai, Dabhol, Mormugoa, Kandla, Cochin, Mangalore, Chennai, Ennore, Dahej, Visakhapatnam, Paradip,
Hazira, Haldia & Vadinar. This cell is fully geared to handle all types of tankers carrying crude, clean
petroleum, chemical products, LPG and LNG. Tanker operations from large mother vessels to smaller tankers
are carried out under expert supervision. Presently we handle the 1st and 2nd LNG ships operating in India,
including MV Disha and MV Raahi.
WAREHOUSING & FRIEGHT STATION
With modern infrastructure at our disposal, we offer freight forwarding as a specialised service to both
importers/exporters with full responsibility of handling the import/export function. These services include
warehousing, transport, customs clearance and other related activities. We are geared to providecomprehensive multimodal service on a point-to-point basis using various modes of transport.
INTERNATIONAL FREIGHT FORWARDING
With our excellent all India network and links to overseas forwarding partners, we offer quality services and a
seamless network of international logistics that delivers goods as desired by the clients. We have the
advantage of being licenced Custom House Agents, Freight Brokers and Chartering Agents and are hence in a
position to offer our services to Indian and foreign clients.
FUTURE EXPANSION
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Logistics services provider Safexpress plans to invest Rs 800-1,000 crore (Rs 8-10
billion) in five years to expand its operations on the back of the boom in manufacturing
and retail activities in the country. As a result of the expansion, the company's turnover is
likely to touch Rs 1,000 crore (Rs 10 billion) by 2010.
The company expects to fund its expansion through internal accruals and debt as it claims
to have strong bottom-line and cash reserves. The privately-held Safexpress has been
growing at 35 per cent and posted a turnover of Rs 450 crore (Rs 4.5 billion) in 2006-07.
The company expects similar growth this year as well, Pawan Jain, chairman and managing
director, told reporters at the CII Logistics 2007 summit in Chennai. Safexpress intends to set
up logistics parks comprising warehouses, vendor management services, raw material
management and finished products storages at 32 locations across the country.
Each park will come up on an area of 25-30 acres. A group company, which is into the
realty business, has already completed around 70 per cent of the land acquisition. The
company is also establishing a 3 lakh sq ft logistics park near Chennai at an
investment of Rs 35 crore (Rs 350 million). It already operates a 80,000 sq ft warehouse
in Chennai.
Through the expansion programme, the warehousing capacity of the company will grow to 10
million sq ft in the next three years from the current 3 million sq ft. The company was
planning to strengthen its presence in the air cargo segment by taking three Boeing-737 cargo
aircraft on lease. These would cover five cities in the country by the next financial year,
according to Jain. Safexpress has also placed an order for 380 trucks to add to its current fleet
of 3,000 vehicles. The company doesn't own the vehicles, but hires them through its network
of 59 vendors.
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The company hopes to double its turnover to Rs 1,000 crore by 2010, he told reporters on the
sidelines of CII Logistics 2007. The privately-held company has been growing at 35 per cent
and posted a turnover of Rs 600 crore in 2007-08. It expects a similar growth this year, Mr
Jain said.
In three years, Safexpress will add 7 million sq ft of space to its existing 3 million sq ft. It
will set up logistics parks comprising warehouses, vendor management, raw material
management, finished products storages, and also distribute consignments. These parks
will come up in 32 locations across the country, he said.
EMPLOYEES TURNOVER
At present there are 2500 employees in safexpress but they are planning to expand there
number of employees in future.
ACHIVEMENTS
Safexpress wins International Business Excellence Award 2008
Safexpress CMD, Mr. Pawan Jain conferred with the Bharat Gaurav Puraskar
by the Institute of Economic Studies Mumbai, September 4, 2008: Logistics Guru and
CMD, Safexpress, Mr. Pawan Jain was conferred with the Bharat Gaurav Puraskar for the
Best Business Leader by the Institute of Economic Studies (IES) this week. His
entrepreneurship venture, Safexpress Pvt. Ltd. which has grown into one of the leading
logistics and supply chain management companies in India was also awarded the
International Business Excellence Award for the Best Business Enterprise at the same
platform organised at Hotel Grand Sukhumvit.
By Sofitel at Bangkok, Thailand. The prestigious award was presented in a ceremony
proceeded by a seminar on The Global Indians. The award was given in recognition of the
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achievements of Mr. Pawan Jain with respect to bringing innovation, excellence and quality
in the field of Logistics.The award was presented to Mr. Jain by the former Deputy Prime
Minister of Thailand, Dr. Korn Dabbaransi.
On this grand occasion, Logistics Guru, Mr. Pawan Jain, CMD, Safexpress said Both
these prestigious awards mean a lot to us. It is indeed a proud moment for everyone
associated with Brand Safexpress. We are happy that our relentless efforts have been
recognized in the industry. We have always ensured quality, security and timely services
and promise to continue in delivering the best. We are humbled by this adulation.
This award ceremony was a platform for honoring Indian entrepreneurs and enterprises,
who have been consistently demonstrating Business Excellence as per International
standards.
IES is the most esteemed economic institution of the country. It seeks to provide expert
advice on the various facets of Indian economy by way of in-depth study and research.
IES has been actively involved in providing information to its members on the critical
developments taking place on the various economic fronts. In present day, it has come to
epitomize excellence in economic sphere. About Safexpress- Safexpress is Indias No. 1
Supply Chain and Logistics Company. The company offers the best and the most innovative
solutions for all SCM and Logistics requirements. Their services are totally customized as per
the demand of different segments of the business industry. Courtesy their wide range of
quality services, Safexpress has set a benchmark in SCM standards and redefined the
functioning of Indian Logistics Industry. Growing at a phenomenal rate of over 30 % in the
last couple of years, Safexpress achieved an annual turnover of Rs. 500 crores in the FY
2006-07.
The company is targeting a turnover of Rs. 1000 crores by the year 2010.
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CHAPTER-2
SUPPLY CHAIN MANAGEMENT
Meaning
Components of Supply Chain Management
Supply Chain Management: Robert B. Handfield
System of Supply Chain Management
Processes of Supply Chain management
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SUPPLY CHAIN MANAGEMENT
Since, the beginning of the 1990s, there has been a paradigm change in the business
scenario, mainly due to the liberalization policy of various economies all over the world, and
revolutionary innovation in the field of science and technology.
Particularly, information technology and communication infrastructure has resulted into a
continuous acceleration in the magnitude competition. To sustain themselves in such an
erratic environment, firms need to have door competency and productivity. That is why firms
are perceived to have more systemized activities related to movement and storage of goods so
as to make them available at a short noticed with the lower inventory level. For instance,
Godrej locks a division of Godrej & Boyce Company has to reduce its order to delivery
cycle from there weeks to only three days. Computers giant Hewett Packard has cut the
duration of its cycle to deliver to customers in India from the us by one third, from 37 days, to
10 days. All this happened because of higher and systematic. Supply Chain Management the
new and more Indian companies are jumping onto supply chain management bandwagons for
the completive edge.
Supply Chain Management is business system of enterprise strategies, business processes and
information technologies for improving the planning, execution and collaboration of material
flows, information flows, financial flows and workforce flows in the supply chain. SCM is
supported by modular software applications that integrate.
Activities across organizations, from demand forecasting, product planning, parts purchasing,
inventory control, manufacturing, product assembly to product distribution. Association put
forward is that Supply Chain Management encompasses the planning and management of all
activities involved in sourcing, procurement, conversion, and logistics management activities.
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Importantly, it also includes co-ordination and collaboration with channel partners,which can
be suppliers, intermediaries,third-party service providers andcustomers.
In essence, Supply Chain Management integrates supply and demand management within and
across companies.
Customers:
Customers are the sole purpose of existence of any business. customers interact
with retailers or supermarket. Website or telemarketing
firm can also act as an interface for the customer. Retailer works towards fulfilling
the demand, either through inventory or through placing fresh orders with
preceding link in the supply chain. In some case the customers bypass the
traditional supply chain and interact directly with the manufacturers for example
in case of online purchase of computer from Dell Computers, customers directly
place an order with a manufacturer i.e. Dell.
Retailers/Distributors:
Retailers interact with distributors or manufacturers directly to fulfill the demand created
by their respective customers. Retailer places
an order with preceding link in the supply chain to replenish its depleting
inventories. Typically the orders are initiated by the retailers but, in some case the
manufacturers monitors supermarket stocks and automatically initiates reorders,
Wal-Mart and P&G using continuous replenishment program is one example.
Manufacturers:
Retailers or distributors often place their orders with manufactures after gauging the
demand. Based on the demand from
retailers/distributors manufactures decide their production targets and schedules.
Manufacturers usually follow either push based strategy or pull based strategy. In
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push based strategy production decisions are based on long-term forecasts thus
making it more difficult for the manufacturers to adjust their production
schedules.
In a pull-based strategy production is driven by customer demand rather than
forecast thus allowing for greater flexibility in the production. Information flow
and technologies like Point-of-Sales ( POS ) data play a significant role in this
strategy.
Suppliers:
Manufactures interact with suppliers to make sure that they have all the available materials
for manufacturing. Raw material orders placed with
suppliers are more precisely determined as they are based on production schedule.
But the question arises is the production schedule reflective of the correct demand?
Manufacturers works in close coordination with suppliers in order to reduce high
inventories. Just in time is one such technique, which manufacturers use to achieve
this objective.
REVERSE SUPPLY CHAIN
Reverse Logistics is the process of planning, implementing and controlling the
efficient, effective inbound flow and storage of secondary goods and related
information opposite to the traditional supply chain direction for the purpose of
recovering value or proper disposal. Reverse Logistics is also referred to as
Aftermarket Customer Services. In other words, anytime money is taken from a
companys Warranty Reserve or Service Logistics budget, that is a Reverse
Logistics Operation.
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COMPONENTS OF SUPPLY CHAIN MANAGEMENT
Our Global Supply Chain Management practice focuses on four key solution areas:-
Adaptive Execution.
We transition your supply chain into a high-speed, low-cost, rapid-response engine
to increase visibility and response from procurement to
fulfillment and replenishment.
Supply Management.
Our technologies and collaborative business processes improve sourcing, procurement,
contracting, purchasing, invoicing and analysis.
Customer-Supply Synchronization.
Integrate SCM with marketing, sales and customer
management and youll see high availability and low costs
that can increase sales and eliminate rush shipments and
back-orders.
Securing Supply Chains.
Comply with security requirements and speed container inspections with
solutions that offer tracking, analysis, alert capabilities,
and process and policy documentation
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A SYSTEM OF SUPPLY CHAIN MANAGEMENT
Supply Chain Management is a social or soft system which has goals, components,
processes and boundary.
Goals of SCM.
To reduce inventory cost.
To increase sales
To improve the coordination and the collaboration with suppliers, manufactures an
distributor.
Components of SCM System
The componentsof a supply Chain System consist of
1. Supply Chain Software and Hardware,
2. Supply Chain Business processes andUsers of SCM System.
SCM Software and Hardware
The core ofan SCM System is SCM software. Supply Chain Software is module based
application. Each software module automates business activities of a functional area in the
Supply Chain.
UNIX is the most common operating systemfor running SCM software.
Business Processes
Business processes ofsupply chain includes supply chain planning, execution and
collaboration and operational control.
Users
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The users of SCM systems are workersof supply chain participants at all levels.
PROCESSES OF SUPPLY CHAIN MANAGEMENT
Demand Planning and Forecasting
A critical success factor to supply chain management is accurate demand forecasting.
Supply chain software systems utilize sophisticated mathematical models for predicating
future demand from historical data.
Procurement
This is the process of choosing the suppliers that will deliver the goods and services you
need to manufacture or assembly your products or create
your services. It involves price negotiation, receiving, and verifying the
shipments.
Manufacturing and Assembly
Raw components are assembled into final products or raw materials are manufactured into
finished goods.
Distribution
This is the process of delivering your products or services consumers. Distribution involves
warehousing, delivering, invoicing and payment collection.
Return
Return and refund are important parts and also the problem pats of supply chain
management.
Boundary of the SCM systems-
The boundary of a SCM system is he boundary of extended enterprise which includes the
company, suppliers, partner, distributors and customers.
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CHAPTER-3
CASE STUDY
DABBAWALAS OF MUMBAI
CASE STUDY: DABBAWALAS OF MUMBAI
6 Sigma Dabbawalas of Mumbai, And their Operations Management-
An Analysis :
The ubiquitous Dabbawalas also known as tiffinwalas who provide a lunch delivery
service in Mumbai have been in the business over 115 years. Their mode of operations
have been studied by global management gurus and business schools. In 1988, Forbes
magazine conducted a study and rated them a Sigma 6 organization i.e. a 99,9999 per
cent correctness which means if the organization delivers six million tiffins, it will not
misplace more than one or just one tiffin in six million transactions.
Considering the unique achievement of Dabbawalas in the field their operations, this
study has been undertaken to access their group efforts and managerial efficiency. The
main objectives of this subject are :
1) To examine how the Dabbawalas operate;
2) To study how Dabbawalas of Mumbai perform an amazing role in procurement
and distribution of tiffins to their clients from which one can learn many critical
issues of supply chain, distribution and logistics management. This subject mainly
dwells on the examination of their operations and achievement of almost zero-
fault performance including their problems and prospects in this changing
environment of their business, they work as a team to achieve a common goal
with a cent percent accuracy, and
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3) To explore the problems and prospects of the Dabbawalass services in the light of
changing environment.
Their Glorious Past Performances:
The origin of the Dabbawalas lunch delivery services dates back to the year 1890.
Mahadeo Havaji Bacche, a migrant from Pune district ( North Maharastra ) started this
lunch delivery service. At that time, eople came from different states and form different
communities migrated to Mumbai for work. At working place there were no canteens or
fast food centres and they did not bring their lunch from home. Besides, different
communities had different food habits, tastes and preferences which could only be
satisfied by a home made meal. Recognizing the need, Mahadeo started this lunch
delivery service.
In this business, Mahadeo recruited young men from the villages neighbouring Mumbai
(generally Pune district and adjoining areas ), who had no formal education or technical
efficiency to get work in the city. There were 100 Dabbawalas increased. In 1950,
Dabbawalas were delivering 1,00,000 lunches per day. After the death of Mahadeo they
became organized in 1954 and formed Nutan Mumbai Tiffin Box Suppliers Charity Trust.
The trust had branch offices in different parts of the Mumbai sucha s Chembur, Dadar,
Ghatkopar etc. In 2005, 5000 Dabbawalas are delivering around 2,00,000 lunches per day.
Levels of Management:
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The trust is a co-operative body having three levels of management, viz.
1) The Governing Council, its President, Secretary Top level,
2) Mukabams ( Team leaders or supervision ) Middle level,
3) Dubbawalas Lower level.
The Governing Council ( also called as Panch Committee ) holds meetings on the
15th day of every month. Mukadams and Dabbawalas are entitled to attend the
meetings. At these meetings, Dabbawalas discussed their problems and business
policies. The trust collected Rs. 15 p.m. for each member to maintain a welfare
fund. The trust provides various services to its members, including loan facilities
for emergencies, educations expenses for children, health care etc. from this
welfare fund. The Dabbawalas are organized in supervise to sorting Dabbas ( tiffin
box ), to keep records of payment, to settle disputes, to seach new customers and
train new Daddawalas. Each goup is financially independent but work together in
the delivery process. Each gouup serves its own customers without hampering the
interests of other. Now the Dabbawalas are charging cutomers Rs. 250 to Rs. 300
p.m. for their services. Total monthly collection is shared equally among the
members of the goup. Each Dabbawala receives Rs. 5,000 to Rs. 6,000 after
meeting all expenses like railway monthly ticket, rent for handcarts, crates etc.
Newcomers who want to become Dabbawala are initially hired on a salary, after
evaluating their performance they are offered membership (shareholders) of the
trust and assigned to one of the groups. Each Dabbawala is guaranteed to receive a
monthly income and employment for life. As there is no retirement age, he may
work as long as he is physically fit. To become profit sharing member of the trust,
new Dabbawalas needs to pay a certain amount to the trust. This was Rs. 30,000 in
2003.
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How they operate and work as team:
This service is available in every working day and whenever the local trains run in
Mumbai & Suburban because it is their primary mode of transportation. The
Dabbawalas deliver home-cooked meals to individuals (irrespective of their caste,
creed or religion) at their working places (offices/factories) and return empty
boxes to customers houses or caterers. Every customer who avails himself the
service is given a aluminum container (called Dabba-contains 2 or 3 containers,
often carrying rice, chapattis, curry and salad) with appropriate code painted on
the lid. The Dabbas are changed hands at least four or five timers before they
reach their destinations during the delivery process. The process runs as follows:
A Dabbawala picks up the tiffin box with cooked food from a house or caterer
early morning (generally between 8:30 a.m. and 10:30 a.m.), then transports it by
cycle or handcart to the nearest railway station. Then he hands it over to a
Mukadam who sorts it and arranges them in crates or trays, according to the
destination. Another Dabbawala then transports it in the suburban train vendor
compartment to the railway station nearest to its destination where another picks it
up and delivers it to the ultimate recipient by 12:30 p.m. After lunch, the Dabbas
are picked up and return to the customers house or caterer in a reverse operation.
The food and the Dabba both belong to the customer. Even housewives
occasionally send messages to their husbands in these Dabbas. This delivery
system has been compared to a relay race.
The Dabbawalas have developed their unique coding system. The codes help each
Dabbawala to identify and fulfill his responsibility. These codes are understood by
the Dabbawalas and no one else. The code is painted on the lid of the Dabba,
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which indicates the originating address & station and the destination station &
address. Their coding system is very interesting. They use colours and code
markings to ensure faultless delivery. They use both alphabets and numbers to
identify Dabbawala, station, building and floor. For example, if the code on a
Dabba is P-BO-10 15/A/11, then P identifies the name of the Dabbawala,
BO indicates Borivili (area) where the Dabba has to be collected from,
10 represents the area, Nariman point, where the Dabba has to be delivered and
15/A/11 stands for 15th building, 11th floor.
Dabbawalas ability to successfully run the service in a crowded city like
Mumbai could be attributed to its geography and local train service. The trains run
every day in a year and there is very rarely any interruption in the service. At
monsoon, due to heavy rain, when the rail tracks would get flooded then the
service is disturbed. Raghunath Medge, President of the trust said, Mumbais
geography makes it unique, it is a longish city where residences are in the north
and offices in the south, so it makes our work simple.
According to their version, they use the cheap public transport system which is
advantageous to them. Several groups are involved in this service, but their team
work is unique and delivery almost flawless due to their effective co-ordination.
Even there is no mixing of vegetarian and non vegetarian Baddas on the same bicycle.
Raghunath Medge claimed We generally make one mistake in two
months. We cant afford to make mistakes to often or else we will be out of business.
Problems & Prospects :
The trust faces the cut-throat competition from the growth of fast food centers like
Pizza Hut, Mac Donalds etc. while there are thousands of die-hard customers,
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rapid urbanization, increasing personal transportation and availability of different
kinds of fast food have drawn a good chunk of the younger generation away from
the home made food. But there is an increasing number of people who are health
conscious and feel that home cooked food suits their stomach and health. Even
some customers now send water along with their tiffins. Knowing this very issue
the trust do not bother about the competition. Today, the Dabbawala delivers them
to offices. But Medge said that food from caterers is still a small segment of the
total operation. Most people want to eat homemade food in the offices without the
bother of having to carry a cumbersome tiffin box. Six Sigma quality rating helps
the organization streamline their delivery systems, eliminate errors and achieve a
cent percent accuracy. Around 8000 Dabbawalas deliver about 5,00,000 tiffing
boxes to factories and offices acroos Mumbai with high labour intensive and with
almost zero technology inputs. But they receive international recognition after 115
years of glorious service. Every year their business grows by 25,000 to 30,000
tiffin boxes. They lose a few customer too each year but are more than
compensated with the addition. Actually they grow annually by about 10%. Till
the time people will feel hungry their business will keep growing.
They have started advertising on Dabbas by putting stickers on them. This brings in extra
income. Mumbai Dabbawalas deliver mainly during day time. They are not night bird. But
India shifts to a 24 Hours X 7 Days work culture, the tiffin boxess network would also work
under the moon and stars.
Conclusion of Case Study :-
The concept of Dabbawala comes into picture in one of Indias big and busiest cities
where people can enjoy the fresh homemade lunch every day. What a wonderful service they
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provide. It is not just a service but a vocation. Their main
aim is customer satisfaction the trust shows how these illiterate or semiliterate
Dabbawalas have mastered the art of logistics management, supply chain
management, customer service, just-in-time management, team work and problem
solving. People cannot believe that uneducated people can provide such and
efficient service. Even people of foreign countries (like U.K., Italy etc.) are
amazed that uneducated Dabbawalas can carry out such type of business so
accurately. Actually the uneducated have an ability to memorize and retain more
as opposed to educated who are used to writing down everything. So they claim
that our head is our computer and Gandhi cap in the computer cover to protect it
from the sun or rain. The white-capped, white-shirted Dabbawalas shot the
limelight when they were awarded the six sigma rating, but it was Prince Charles
meeting with them in Mumbai in November,2003 that really helped them. He was
the first celebrity who visited them. R. Megde said Many people talk about us,
but Prince Charles was the first famous person who met us. He encouraged us. He
is our friend.
Hard work and sincerity of Dabbawalas are the two main factors to reach such
levels of efficiency with such an untrained work force. They got six sigma rating
of highest operational efficiency without using any paper work or computer.
Thanks to their personal as well as group efficiency and dedication to their
vocation.
CHAPTER-4
WARWHOUSING
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WAREHOUSING
A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They
are usually large plain buildings in industrial areas of cities and towns. They come
equipped with loading docks to load and unload trucks; or sometimes are loaded directly
from railways, airports, or seaports. They also often have cranes and forklifts for moving
goods, which are usually placed on ISO standard pallets loaded into pallet racks.
Some warehouses are completely automated, with no workers working inside. The pallets
and product are moved with a system of automated conveyors and automated storage and
retrieval machines coordinated by programmable logic controllers and computers running
logistics automation software. These systems are often installed in refrigerated
warehouses where temperatures are kept very cold to keep the product from spoiling, and
also where land is expensive, as automated storage systems can use vertical space
efficiently. These high-bay storage areas are often more than 10 meters high, with some
over 20 meters high.
The direction and tracking of materials in the warehouse is coordinated by the WMS,
or warehouse management system, a database driven computer program. The WMS is used
by logistics personnel to improve the efficiency of the warehouse by directing putaways and
to maintain accurate in inventory by recording warehouse transactions.
For a warehouse to function efficiently, the facility must be properly slotted. Effective
slotting addresses which storage medium a product will be picked from (pallet rack or
carton flow), and how they will be picked (pick-to-light, pick-to-voice or pick-to-paper).
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With a proper slotting plan, a warehouse can improve its inventory rotation
requirements-- such as FIFO (First In First Out) and LIFO (Last In First Out) -- control
labor costs and increase productivity.
Traditional warehousing has been declining since the last decades of the 20th century
with the gradual introduction of Just In Time (JIT) techniques designed to improve the
return on investment of a business by reducing in-process inventory. The JIT system
promotes the delivery of product directly from the factory to the retail merchant or from
parts manufacturers directly to a large scale factory such as an automobile assembly
plant, without the use of warehouses. However, with the gradual implementation of
offshore outsourcing and offshoring in about the same time period, the distance between
the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew
considerably in many domains, necessitating at least one warehouse per country or per
region in any typical supply chain for a given range of products
Recent developments in marketing have also led to the development of warehouse-style
retail stores with extremely high ceilings where decorative shelving is replaced by tall
heavy duty industrial racks, with the items ready for sale being placed in the bottom parts
of the racks and the crated or palletized and wrapped inventory items being usually
placed in the top parts. In this way the same building is used both as a retail store and a
warehouse.
Modern warehouses are also used at large by exporters/manufacturers as a point of
developing retail outlets in a particular region or country. This concept reduces the end
cost of the product to the consumer and thus enhance the production sale ratio.
Warehousing is an age old concept which can be used as sharp tool by original
manufacturers to reach out directly to consumers leaving aside or bypassing importers or
any other middle agencies or person.
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Internet impact
The internet has had an influence on warehouses too. Internet based stores do not require
physical points of selling. However, warehouses are still required to store the goods.
Since direct contact with customers means many small orders, this is a different situation
where stores would be ordering large numbers of goods. Simply said, warehouses change
from shipping large quantities of goods to shipping large numbers of small quantities of
goods.
Having a large and complex supply chain containing many warehouses may be costly.
Sometimes, it is beneficial to have one large warehouse per continent. This warehouse
should be located at a central point, where transport is available to all other destinations.
At these continental hubs, goods have to be customized for different countries. For
example, goods get a price ticket in the language of the country where it will go. Making
small adjustments to goods at a warehouse is called value added services.
Types of Warehouse Storage Systems
Some of the most common types of warehouse storage systems are:
Pallet rack:
Including selective, drive-in, drive-thru, double-deep, pushback, and gravityflow.
Mezzanine:
Including structural rolls formed, rack supported, and shelf supported.
Cantilever Rack:
Including structural and roll formed.
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Industrial Shelving:
Including metal, steel, wire, and catwalk.
Automated Storage and Retrieval System (ASRS):
Including vertical carousels, vertical lift modules, horizontal carousels, robotics,
mini loads, and compact 3D.
Chapter 5
FQAs
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FQA s
Why Safexpress?
Safexpress Indias Leading Logistics Company is renowned for its domain expertise
and experienced manpower in the LSCM sector. Safexpress can best understand your
Logistics and distribution requirements and can offer the most suitable Logistics model and
solution to you. Safexpress has the largest network coverage across India traversing over
3,50,000 km. every day covering over 550 locations through more than 750 routes operating
24 hours a day 365 days a year .
What is the Network Strength of Safexpress?
Safexpress-Indias leading Logistics Company, has more than 550 Locations across
India in its network. Safexpress reaches these locations through its fleet of 3000 vehicles
operating on more than 1000 routes, 24 hours a day 365 days a year. All Safexpress vehicles
have all-weather proof containers for safe transit. Safexpress also operates through Air to
locations directly covered by flights and to all other locations on a multi modal basis.
Will Safexpress cater to my destination?
Safexpress-Indias Leading Logistics Company, has network of more than 550
Locations across India. To check whether Safexpress caters to your destination, please check
our 'Contact Us' page and click on Network.
How do I Contact Safexpress for Pick-up?
Safexpress-Indias Leading Logistics Company, has offices across all industrial and
commercial towns and cities of India. To contact any one of them, please check our 'Contact
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Us' page and click on your State to identify your city of origin, or click on the first alphabet of
your destination to see a list of destinations starting with the alphabet. Across India you could
also contact our Toll Free phone 1800 113 113 & you can also mail Corporate Customer
Services Desk at [email protected]
Does Safexpress handle both Domestic and International Consignments?
Safexpress, Indias Leading Logistics Company today handles only Domestic cargo.
What are Safexpress Services?
To view our entire bouquet of services in Logistics and Supply Chain, please go to our
'Services' page. Here, you will find all our Services listed with complete explanations. For further
queries or more customised solution, Please mail us atsafexpress @saf express.com or call us toll
free 1800 113 113.
What is ILM?
Integrated Logistics Management is our 3PL Product that optimises your companys
supply chain. First, we examine the linkages between your suppliers, producers, buyers,
intermediaries and end users in order to identify time and cost inefficiencies. Next, we deploy
our unique mix of local know-how, global practices and cutting-edge technology to provide
integrated supply chain solutions. These range from specific services such as warehouse
management, statutory compliance and invoicing - to an entire gamut of third party logistics
services.
Does Safexpress operate in Containers only?
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All the fleet of Safexpress is all-weather proof containers meeting global quality
standards. Unless specifically required for a customised project Safexpress does not carry in
open body vehicles.
What does Safexpress Carry?
Almost every product manufactured, imported or sold in India can fall under our
purview which requires to reach its destination in time, safely and conveniently. Barring
goods contraband in nature, explosives, Cash, jewellery, and inflammable material...
Broadly major areas of business for Safexpress include IT hardware, Ready Made Garments,
Pharmaceuticals, Electrical and Electronic goods, Automobile Components & Spares, Fabric
and Cloth, FMCG, and Non-Perishable Food Products among many other products belonging
to diverse market segments.
What about Packaging?
Safexpress principally does not handle packaging themselves. We can consult and
provide needful help and assistance but directly might not pack. We have SAFEBOX for our
clients that comes in two convenient sizes: the 17x17x12" Safebox carries up to 20kgs of
cargo; the 16"x12x 9" Safebox carries up to 10kgs of air cargo. The robust design of the
Safebox is further reinforced with internal insulation, which eliminates packaging costs.
Theres another outstanding feature built-in to the Safe box that covers an auto insurance for
up to Rs. 5,000, absolutely free of cost.
What about Transit Risks?
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The Latest of the material handling equipment are used at Safexpress' hubs to ensure
safety and remove Laxity from material handling. Equipment including hydraulic hand pallet
trucks, dock levelers, trolleys, fork lifts multilevel pallet stackers are used by Safexpress.
Chain Pulleys and Cranes handle consignments which are not possible by smaller equipments
to manoeuvre. It might not be out of place to mention here all the hubs of Safexpress are on
platform level height. Any Logistician will understand and appreciate the essentiality and
importance platform level warehouses have for material handling.
How do I locate my material?
Safexpress.com offers you online tracking of your consignment. Simply punch in your
way bill number and the site informs you the status of your Consignments immediately. You
may download a copy of epod (Electronic Proof of Delivery) for your reference.
What are the statutory obligations required for shipments?
Statutory obligations in India vary from state to state. For a check on obligations like
documents, form/permits, octroi /entry tax applicability - please visit our online logistics
planning tool- Virtual Cargo. By simply selecting your booking origin and destination along
with the planned date of despatch, it tells you all the obligations involved. For further clarity,
please call us toll free 1800 113 113 and customer services desk will help you. You can also
mail us at [email protected]
What is virtual cargo?
Virtual Cargo is a Safexpress' gift to Logisticians. Its an online logistics distribution
planning tool for clients. By Simply selecting your origin and destination along with planned
date of despatch, It tells you all the obligations involved like number of copies of
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documents /invoice required, forms or permits required, octroi or entry tax applicability. It
confirms you the expected day/date of arrival at destination by various modes, so as to plan a
pre/postponement of your despatch to realign with your supply chain. It also confirms you the
distance your cargo will travel and the check posts itll pass through in its transit.
How can I become a Privileged Member?
Safexpress offers special attention and offers value added services to its large volume
customers. For these customers our online lounge has been named as Priviledged Members.
Through a login/password access a Priviledged Member gets access to a host of services
including Multiple Waybill Tracking, Tracking by Invoice, various MIS reports on Despatch
and Receipt of consignments, Service Performance Analysis of Safexpress month on month.
We provide direct access for our Priviledged Member to his account manager from safexpress
to respond to direct issues. A host of other add-on and special offers are being added for our
Priviledged Members.
What about Reverse Logistics?
Safexpress has special arrangements to offer project based Reverse Logistics
assignments. For detailed discussions, please call us toll free 1800 113 113 or send us mail on
Does Safexpress carry Liquid Cargo?
Safexpress principally does not carry liquid cargo on consolidation basis. However,
items like pharmaceuticals, adhesives are handled by Safexpress. For special project please
speak with our Customer Service Officers on toll free number 1800 113 113.
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What is Safexpress' cut off time for pick-ups?
Cut off time for pick-ups vary from origin to origin depending on connections. Please
check with our customer services officer at the origin station for exact cut off time for pick up
and he/she will confirm it to you. Our toll free number is 1800 113 113.
Does Safexpress deliver on a Sunday? If yes, are there any extra charges?
Safexpress operates its operations function 24 hrs a day 365 days a year. Safexpress
not only offers delivery services on Sunday but also does not charge anything extra for
Sunday delivery. For all other queries / questions, please mail us
\
Chapter 6
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CONCLUSION
Today we are essentially operating in a global market. In this era of crumbling
economic barriers, the customer reigns supreme. The successful enterprises in this
fiercely competitive economy are those which are able to ensure a high level of
customer satisfaction and at a considerably low cost. The focus today is not on meeting
the customers expectations, but on exceeding them. The strategic role of logistics and
supply chain management in this regard becomes vital.
To achieve the objectives of logistic and supply chain management, it is essential to have
a well-defined organizational structure that supports the corporate mission and improves
and influence logistics system performance. With the growing nature and scope of
logistics and supply chain management in the overall performance of the enterprise over
the years, there have been changes in the logistics organizational structure from being a
part of various functions like manufacturing, finance, and marketing to a core function.
While designing a logistics organizational structure, firms need to follow certain principles of
organization, like unity of command, span of control, authority and responsibility, line and
staff relationships, centralization and decentralization of power etc.
At the same time, it is essential to take into consideration the various factors like the size
of organization, corporate structure and strategy, the role of logistics and supply chain
management in the overall value-addition activities, availability of IT infrastructural
resources, and environmental uncertainty.
Chapter 7
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BIBLIOGRAPHY
SUPPLY CHAIN MANAGEMENT : L.C. JHAMB
INTERNATIONAL LOGISTICS : PIERRE DAVID
SUPPLY CHAIN MANAGEMENT : SUNIL CHOPRA
BROCHURE OF SAFEXPRESS
WEBSITES
www.logisticworld.com
www.safexpress.com
www.google.com