bharat 024 report

Transportation of Third Party Logistics in India

PROJECT REPORT

ON

“TRANSPORTATION OF 3PL IN INDIA”

For

“HANSOL LOGISTICS INDIA PVT. LTD.”

IN PARTIAL FULFILLMENT OF THE AWARD FOR THE DEGREE OFPOST GRADUATION DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF

Prof.Gaurav Gupta IBA Greater Noida

& Mr.Sumir Johar

Head of Operations & SCM (Hansol Logistics India Pvt. Ltd)

Submitted by(BHARAT SAMAVEDAM)

Enrollment No.: FPCG1416/024P.G.D.M – SEMESTER III

Management Trainee at Hansol Logistics India

INDUS BUSINESS ACADEMY GREATER NOIDA

BHARAT Summer Internship Report in Hansol Logistics India Pvt. Ltd 2015 Page 1


TABLE OF CONTENTS:

ACRONYMS AND ABBREVIATIONS:...............................................................................6

STATEMENT BY AUTHOR:................................................................................................7

ACKNOWLEDGEMENTS:...................................................................................................8

ABSTRACT............................................................................................................................10

1- INTRODUCTION:.........................................................................................................12

1.1 History of Hansol Group:................................................................................................12

1.2 India Branch overview:...................................................................................................13

a) Vision of the company:...............................................................................................13

1.3 Different Departments:....................................................................................................14

1.4 Hansol Presence in India:...............................................................................................16

2- PURPOSE:......................................................................................................................17

2.1 Supply Chain Management (SCM):...............................................................................17

2.2 Third Party Logistics (3PL):...........................................................................................18

2.2.1 The Layers of Logistics Services:.............................................................................18

2.2.2 Main Core competencies of a Third Party Logistics Provider:............................20

2.2.3 Advantages:................................................................................................................20

2.2.4 Possible disadvantage of 3PL:..................................................................................21

2.3 Implementation issues and requirements of 3PL collaboration:................................ 21

2.4 Important issues to think about, before contracting with a 3PL provider:................22

2.5 Implementation issues:..................................................................................................22

2.5.1 Necessary guidelines:…………………………………………………………….232.6 Motivation and aims of 3pL collaboration:...................................................................24

2.7 Tradeoffs of Inventory:....................................................................................................24

a) The product variety-inventory tradeoff:...............................................................24b) The lot size-inventory tradeoff:..............................................................................24c) The transportation cost-inventory tradeoff:.........................................................24

2.8Types of Inventory:...........................................................................................................25

a) Cycle Inventory:......................................................................................................25b) Buffer or Safety stock Inventory:..........................................................................25c) Anticipation Inventory:...........................................................................................25d) Pipeline Inventory:..................................................................................................25

2.9 The basic functions of warehouse:..............................................................................28



2.10 Types of Warehouse:..................................................................................................28

a) Public Warehouse:...................................................................................................28a) Contract Warehouse:..............................................................................................28

2.11Warehouse Layout:.........................................................................................................292.12 Warehouse Management System (WMS):...................................................................30

3- TRANSPORTATION:...................................................................................................31

3.1 Vehicles of transport:…………………………………………………………………...33

3.2 Trade Rotes:……………………………………………………………………………..34

3.3 Port & Terminal facilities:……………………………………………………………...34

3.4 Turn Around Time:…………………………………………………………………….35

3.5 Transit time and cost:…………………………………………………………………. 35

3.6 Nature of Cargo:………………………………………………………………………..35

3.7 Information Monitoring:……………………………………………………………….36

3.8 Choice mode of Transport:……………………………………………………………. 36

3.9 Transporter Details:……………………………………………………………….........37

4- RESEARCH OBJECTIVE:...........................................................................................43

5. RESEARCH METHODOLOGY:....................................................................................45

a) Warehouse details:.........................................................................................................45

b) Manpower details:.......................................................................................................45

c) Ghaziabad D.C Warehouse Layout:.........................................................................46

d) Location labeling on the warehouse floor: (Bins).................................................46e) Zone Identification:.................................................................................................47f) Rack identification...................................................................................................48

5.1Warehouse Management Systems (WMS):....................................................................50

5.2 Warehouse Management Activities:...............................................................................50

a) Packing stock management:..........................................................................................50

b) Packing / repacking / packing box mgmt. / system conversion etc.:.......................51

Packing / re-packing activities to be done in the supervision of return management

person. He also ensure that the physical conversion accompanies a system conversion

and a signed off document.................................................................................................51

c) Repairable inventory management:..........................................................................51



d) nCategory stock management:...................................................................................51

e) Non repairable stock management Scrapping / scrap sale / write off:...................51

f) Value added activities:................................................................................................51

Other value added services at the warehouse are supporting re-work activities,

snickering, pallatization & bundling etc… Depending on the company requirement

these things needs to be undertaken under the supervision of RLM and Hansol

logistics.................................................................................................................................51

g) Sample goods management:.......................................................................................51

5.3 Inbound Management:....................................................................................................52

a) Resource planning.......................................................................................................53

b) Vehicle reporting.........................................................................................................53

c) Unloading/ Segregation/ Inspection:.........................................................................53

d) Inspection and segregation of goods:.........................................................................54

e) Location management.................................................................................................54

g) Goods stacking.............................................................................................................55

h) Goods Receipt in system.............................................................................................55

j) Insurance claim:..........................................................................................................55

5.4 Order Cycle management at GZD D.C:........................................................................56

a) Warehouse Order Processing Time:............................................................................56

b) Order Execution Planning:........................................................................................57

c) RDD: Requested delivery Date:.................................................................................58

d) Lead time management...............................................................................................58

e) Customer delivery appointment / delivery confirmation- only for special cases:.58

f) Order rejection logics:................................................................................................58

g) OD follow up & updation:..........................................................................................58

h) POD follow up / collection & updation:....................................................................59

i) Urgent delivery orders (exception):...........................................................................59

j) Order processing & pick list generation:..................................................................59

a) Material picking assignment & labor management:...............................................59

b) Additional labor for peak days / month end etc.:.....................................................59



W/h manager should work out the requirement of additional labour force required

for peak days / month end in advance..............................................................................59

c) Picking & scanning:....................................................................................................59

d) Work monitoring / handling / loading to vehicle:....................................................60

f) Goods Issue and Invoice generation:.........................................................................61

Once loading is completed, warehouse needs to:.............................................................61

5.5 Outbound Management:.................................................................................................61

5.6 KPI FOR OPERATIONS:..............................................................................................62

6. RETURNS MANEGEMENT............................................................................................63

a) Commercial Returns:..................................................................................................63

b) Technical Returns:......................................................................................................63

f) Different damage reasons...........................................................................................64

6.1 Housekeeping and Maintenance Plan:...........................................................................65

a) Cleaning:......................................................................................................................66

b) Hygienic environment:................................................................................................65

c) BIN accuracy:..............................................................................................................67

d) Visibility of displays:...................................................................................................66

7- DATA ANALYSIS & INTREPRETATION:...............................................................73

8- RESULTS DISCUSSIONS AND CONCLUSION:.....................................................73

9- RECOMMENDATIONS & IMPLEMENTATION:...................................................76

APPENDIX B: REFERENCE AND BIBLIOGRAPHY....................................................89

APPENDIX C: LEARNING FROM THE STUDY............................................................90



Acronyms & Abbrevations :

AV/HA Audio Visual & home AppliancesB2B Business to BusinessDC Distribution CenterTR Technical ReportDO Delivery OrderFIFO First In First OutGI On-time Goods IssuedGR On-time Good ReceiptsGRMS Global Return Management SystemPO Purchase OrderWMS Warehouse Management SystemMR Modern RetailMRP Material Requirement PlanningILS Integrated Logistics SystemSOP Standard Operating ProcessSAP Systeme Anwendungen Produkte (German spelling)W/H WarehouseSIEL Samsung India Electronics Limited3PL Third Party Logistics KPI Key Performance IndicatorsHO HansolLT Lead TimeMOQ Minimum Ordered QuantityPOD Proof of DeliveryRDD Requested Delivery DateIOD Information Of DeliveryRDC Regional Distribution CenterGZB GhaziabadHHP Hand Held ProductZPOP Promotional ProductsHME Health and Medical EquipmentsSCM Supply Chain ManagementQty QuantityHQ HeadquartersJIT Just-In-TimeEOQ Economic Order QuantitySKU Stock Keeping UnitsOTRQ On-Time Return Quantity



STATEMENT BY AUTHOR:

This project has been submitted in partial fulfillment of requirements for an advanced degree

at INDUS BUSINESS ACADEMY GREATER NOIDA and is deposited in the college

Library to be made available to borrowers under rules of the Library. Brief quotations from

this dissertation are allowable without special permission, provided that accurate

acknowledgment of source is made. Requests for permission for extended quotation from or

reproduction of this manuscript in whole or in part may be granted by the copyright holder

SIGNED: ………………………. Bharat Samavedam

June 2015, Gurgaon (India)



ACKNOWLEDGEMENTS:

First of all, I would like to thank my Lord for the strength, intelligence, science, wisdom and

health during the writing of this report. Especially my Mentor and faculty Professor Mr.

Gaurav Gupta for his guidance and support throughout the project tenure.

I would like to take this opportunity and thank Mr. Seong Myung Gil- Managing Director &

Mr. Ju Young Min – Chief Financial Officer who gave me the opportunity to carry out my

Internship Project. Especially my supervisors, Sumir Johar - Head of Operations department

and Mr. Suresh chandola – Operations support they have assisted me throughout this work

and always taken the time to discuss different matters and given me important input and

guidance. Nevertheless I would also like to express my Gratitude to Mr. Amol Sapra – Head

Human Resources & Mr. Balbir Sharma – Head Finance, without your devotion this report

would have not been what it is today. We are also grateful for all the support and information

that my fellow interns have given me throughout this work, thanks guys!

Bharat samavedam…………………………

Date:



DEDICATION


Commitment, effort, and dedication were fundamental elements for the

completion of my report, but even more was the support of my family.

today I dedicate them this important academic achievement because

without their support and comprehension I would have not achieved my

goal of doing PGDM program.


ABSTRACT :

Transportation is a key element in the infrastructure. It provides services essential for

promoting development. It plays a significant role in influencing the pattern of

distribution of economic activity and improving productivity. It acts as a life-line linking

markets, educational and health institutions. Above all, it connects the mosaic of cities,

towns & villages of this vast country, thereby underpinning its unity and integration. The

transport system comprises a number of modes. The capacity of each has to be developed

to meet its specific demand within the requirements of the transport system as a whole.

The system has to be viewed at each step as an integrated structure, keeping in mind the

relationship between different transport services. In spite of impressive achievements in

the last 65 years, our transport system remains deficient in several respects. Worldwide

transport growth has been consistently higher than the economic growth due to

specialization, sourcing of material on a wider scale, the use of just-in-time strategies,

further increase and dispersal of retail and wholesale activities etc. Prices of transport

services have been falling as a result of increased productivity due to competition among

suppliers of transport services as well as pressure from users who face relentless pressure

from global competition in their own markets. The liberalization of our economy has

brought home the urgency of recognizing that an efficient transportation system is

necessary for increasing productivity and enabling the country to compete effectively in

the world market. Adequacy and reliability of transport infrastructure and services are

important factors, which contribute towards the ability of the country to compete in the

field of international trade and attract foreign direct investment. The Government cannot

but play a role in this sphere. Even in a market economy, the framework that national

governments provide for the transport sector largely determines the level of cost and

transport operations. It is, therefore, necessary to create a policy environment that

encourages competitive pricing and coordination between alternative modes in order to

provide an integrated transport system that assures the mobility of goods and people at

maximum efficiency and minimum cost. It is with this objective in view that the

Integrated Transport Policy document has been prepared.

Transport system in India comprises a number of distinct modes and services, notably

railways, roads, road transport, ports, inland water transport, coastal shipping, airports and

airlines. Railways and roads are the dominant means of transport carrying more than 95% of



total traffic generated in the country. Although other modes like coastal shipping and inland

water transport would play a greater role, the railways and roads would continue to dominate

the transport landscape in the foreseeable future. For purposes of policy planning, the

transport system must be viewed as an integrated structure in which various modes

complement each other, interface appropriately and where possible provide healthy

competition to each other. This competition must be conducted within the framework in

which each mode is able to operate on a “level playing field” so that in comparative

advantages and economic efficiencies are properly reflected in the costs to the users.

India’s transport sector is large and diverse; it caters to the needs of 1.1 billion people.

In 2007, the sector contributed about 5.5 percent to the nation’s GDP, with road

transportation contributing the lion’s share. Good physical connectivity in the urban and rural

areas is essential for economic growth. Since the early 1990s, India’s growing economy has

witnessed a rise in demand for transport infrastructure and services.

Indian Railways is one of the largest railways under single management. It carries some

17 million passengers and 2 million tons of freight a day in year 2007 and is one of the

world’s largest employers. The railways play a leading role in carrying passengers and cargo

across India’s vast territory. However, most of its major corridors have capacity constraint

requiring capacity enhancement plans




Introduction andTheoretical Framework

The first part starts with an introduction about the whole

company, the description of departments, and background of

the study. Furthermore it gives an explanation of the problems

faced by GZD D.C. Then follow the research questions, the

purpose of the paper, and the literature review.


1- INTRODUCTION: Chapter 1 starts with an introduction of the company, description of departments, and company

operations and background of the study. Furthermore it gives an explanation of the problems faced

by GZD D.C. Then follow the research questions and purpose of this thesis. The chapter ends with the

delimitation of this study and the outline of following chapters.

1.1 History of Hansol Group: Hansol group is a South Korean Conglomerate founded in 1965 with its headquarters in Jung-

gu, Seoul, SCA, South Korea. Their main operations are construction, electronics, tourism,

chemicals, household interiors, paper products, telecom, and logistics. Hansol to be a part of

Samsung group, and is still owned by one of the relatives of Samsung and Shinsegae family.

1.2 India Branch overview:Hansol Logistics India Pvt. Ltd. is a Korean pioneer of third party logistics (3PL) services in

India. The company first entered in the Indian market in September 2008. In October 2009

the Managing Director of Indian Branch joined the company. In June 2009 the company

started warehousing services in Ludhiana and Chandigarh. In May 2009, they started

warehousing service in Delhi and started the same warehousing in Lucknow and Jaipur in

January 2009. Their service solutions are designated to provide end to end supply chain

solutions to a wide spectrum of industry segments. Their main areas of interest are:

Distribution & Last mile fulfilment (Primary transportation, Secondary

Transportation, Reverse logistics, Home/E-delivery, Inland transportation, Last mile

delivery…)

International freight forwarding ( Air freight, ocean freight, and brokerage solutions) ;

Value added services (Pick & Pack, Packaging & Labelling, Distribution,

Warehousing, and Transportation management);

They also satisfy logistical requirements of the company such as network design /

consultancy, inventory management, distribution management, Inventory

optimization and advanced communication solutions, etc.



a) Vision of the company:

Their vision is “Leaping to become the SCM partner growing with customers by staying at

the center of logistics of client value with evergreen mindset and challenging spirit.”

b) Core Values:

c) Slogan:

“The Best SCM Partner Growing with Customers”

d) Logo :

Total Number of Employees: 446 HQ (Global 146 included.)

Homepage: http://www.hansolcsn.com/eng/

1.3 Different Departments:At the top we have the Managing Director Mr. Myung Gil Seong; his role is to coordinate

the overall operations of Hansol India. There are three business units:


Customer Driven Globalization

Speed Innovation

Our core values


Sales and Strategy, Mr. Aju, this business unit handle international freight forwarding,

transportation and last mile fulfilment.

Operations Dpt. Mr. Sumir Johar, this department is mainly into warehouses management;

And Chief Financial Officer Mr. Ju Young Min, this business unit is divided into:

a) Finance Dpt. Mr. Balbir Sharma, this department takes the responsibility for

organising the financial and accounting affairs including acquiring and managing

funds for the company.

a) Human Resources Dpt. The Department is responsible for hiring members of staff

and ensuring that they perform to expectation.

b) Innovation Mr. Ju Young Min, their task is to identifying and implements new ways

of doing business in order to stay competitive in the market and gain further market

share. (See the Organizational Chart below.)

c) Organizational Chart


Managing Director

OperationsSales & Strategy CFO

W/H Operations

Bihar

Freight Forwarding

Transportation

PAN India PAN India

HRM Finance Innovation

UP Delhi Rajasthan PUN HP Uttarakhand

Patna LKO GZD DEL JAI LUD CHD PWN DDN

Head Office


1.4 Hansol Presence in India:Hansol Logistics India Pvt. Ltd. has extended its operation in all of the four regions of India

as shown in the table below.

North India South India West India East India

Chandigarh

Delhi

Dehradun

Jaipur

Lucknow

Ludhiana

Greater Noida

Parwanoo

Chennai Mumbai

Pune

Nagpur

Wardha

Surat

Ahmedabad

Kolkata

Patna

Table 1: Hansol presence in India, Source: own prepared

.



2. Purpose:The Purpose of this project is to:

Identify different warehouse management policies and procedures, basic principles of

warehouse and inventory management to implement in GZD D.C.;

Understand how to select and set-up a warehouse

Determining storage requirements

Understand Warehouse Preparation Planning and Managing Transport management

Identify the effects of logistics and supply chain management practices and how it can

be utilized to gain a competitive advantage; etc…

This internship project will focus much more on warehouse management issues such

as Transportation management. Why these questions are important, because most of

the 3PL providers such as Hansol India consider warehousing as one of the most

important and critical function of SCM. A good Transport management can positively

impact the performance of the company. Furthermore, it can prevent events such as

bullwhip effect, shipment damages and key performance indicators failure, etc.

2.1 Supply Chain Management (SCM): “Supply chain management is the synchronization of a firm’s processes with those of its

suppliers and customers to match the flow of materials, services, and information with

customer demand” Krajewski, Ritzman, Malhotra & Srivastava, 2010. The term “supply

chain management” first used by consultants in the late 1980s and then analyzed by the

academic community in the 1990s, has become a popular buzzword (Burt, Dobler & Starling,

2003).

Supply chain management includes the link between upstream (such as supply and

manufacturing), and downstream (such as logistics and distribution) value chain entities.

Successful supply chain management requires the integration of these value chain entities to

create cooperative and collaborative environments that facilitate information exchanges,

materials and cash flows (Kukalis, 1989).



Figure 1: an example of supply chain process, source: google.com (fundamental of SCM)

2.2 Third Party Logistics (3PL): Third party supply of logistics related operations between traders by an independent

organization. Third Party Logistics is the activity of outsourcing activities related to Logistics

and Distribution. The 3PL industry includes Logistics Solution Providers (LSPs) and the

shippers whose business processes they support.

2.2.1 The Layers of Logistics Services:There are four main interrelated layers of logistics services that involve increasing levels of

service and supply chain integration:

a) First Party Logistics (1PL): Concerns beneficial cargo owners which can be the

shipper (such as a manufacturing firm delivering to customers) or the consignee (such

as a retailer picking up cargo from a supplier). They dictate the origin (supply) and the

destination (demand) of the cargo with distribution being an entirely internal process

assumed by the firm. With globalization and the related outsourcing and offshoring of

manufacturing, distribution services that used to be assumed internally tend be

contracted to external service providers.

b) Second Party Logistics (2PL ): It concerns the carriers that are providing a transport

service over a specific segment of a transport chain. It could involve a maritime



shipping company, a rail operator or a trucking company that are hired to haul cargo

from an origin (e.g. a distribution center) to a destination (e.g. a port terminal).

c) Third Party Logistics (3PL ): Concerns freight forwarders that could have stakes in a

specific transport segment and its physical assets, but who are offering comprehensive

freight distribution services along transport chains. These services can involve

warehousing, transloading, terminal operations and even forms of light manufacturing

such as packaging and labeling. A 3PL thus tries to organize the tasks related to

physical distribution, so that parts and finished goods can be carried from their origin

to their destination.

d) Fourth Party Logistics (4PL):

It concerns commonly independent and neutral actors such as specialized consulting firms

that are organizing and managing complete supply chains strategies for their customers. They

can be involved in outsourcing decisions, supplier selection and the routing of cargo to

support supply chain management. This often involves agreements (subcontracting) with

3PLs and 2PLs.

Several firms, many global in scope, offer a variety of services spanning 2PL, 3PL and 4PL

layers. About 75% of all 3PL firms are also offering 4PL services.

Figure 2: Layers of logistics services, Source: The geography of transport system, 2014.



2.2.2 Main Core competencies of a Third Party Logistics Provider:

Figure: 3 Core competencies of 3PLs

2.2.3 Advantages of 3PL

1. Cost and time savings for the client

As logistics is the core competence of third party logistics providers. They possess better

know how and a greater expertise as any producing or selling company could be able. This

know how together with the global networks of the often large company size enables a higher

time and cost efficiency. Another point is, that the equipment and the IT systems of 3PL

providers are constantly updated and adapted to new requirement of their customers, so that

they are able to meet the requirements of their customer’s suppliers. And that is more than

essential to a company’s survival. Producing or selling companies often do not have the time,

resources or expertise to adapt their equipment and systems as quickly as necessary. So in

conclusion a 3PL provider can meet the technical requirements in a faster and more cost

efficient way than a company could do itself.

2. Low capital commitment

Thus the fact that most or all operative functions are outsourced to a 3PL provider there is no

need for the client to hold own warehouses or transport assets. There is very less or no tied up

logistics capital. This is very beneficial if a company has high deviations in warehouse



capacity utilization, because a bad capacity utilization ratio at equal fix cost (for warehouse)

is evil for a company’s efficiency and profits.

3. Ability of client to focus on core business

The outsourcing of logistics departments permits the company to focus even more on their

real core business. If logistics is one of the firms’ core businesses then outsourcing doesn’t

make sense. But if logistics is no core competency but rather needed or annoying attachment

it should be outsourced to a logistics provider, because the continuous increasing of business

complexity makes it impossible to be an expert in every division or sector.[4] And if you are

no expert in a division, there is always the opportunity to improve. Often only the core

competency is really adding value to your product. So it is immense important to be best in

class or one of the market leaders to generate profits, because normally the quality of the core

product is the main (not the only, but the main!) reason for the consumer to buy it.

4. 3PLs provide flexibility

Third party logistics provider can provide a much higher flexibility in geographic aspects and

can offer a much larger variety of services than the clients could provider their selves. In

addition to that, the client gets flexibility in resources and workforce size and logistics fix

costs turn into variable costs.

2.2.4 Possible disadvantage of 3PL

The only big disadvantage (if you see it as one) is the loss of control a client has by working

with third party logistics. Eminently in outbound logistics when the 3PL provider completely

assumes the communication and interacting with a firms customer or supplier. By having a

good and continuous communication with their clients most 3PL’s counter and try to charm

away such doubts. Some 3PL’s even paint the clients logos on their assets and vest their

employees like the clients ones.

2.3 Implementation issues and requirements of 3PL collaboration

Due to the fact that a 3PL to client collaboration is a typical strategic alliance, as the author

mentioned earlier in this thesis, there will be an introduction of problem areas in the practical

implementation of strategic alliances. This points are important for a successful strategic

alliance. If they aren’t fulfilled or only badly, this will lead to immense problems. And these



problems will be even more serious in the development of a strategic alliance than in a

company’s daily routine, because damaged faith in respect to the benefits and success of such

an alliance is deadly and destructive for change motivation of all people involved.

2.4 Important issues to think about, before contracting with a 3PL provider

First you have to know about your own logistics costs. Because only if you know exactly

your own costs you can compare it to the costs of à logistics provider. Often it is useful to

know the direct costs of each product and service, because sometime it makes sense to

outsource only some parts of the logistics and leave some products or operating steps

untouched because the in-house logistics is able to do better or cheaper than an external

provider.[8] Another important point is the customer orientation of the 3PL provider. The

provider has to fit to the structures and the requirements of the company. This fit is more

important than the pure cost savings, like a survey of 3Pl providers shows clearly: The

customer orientation in form of adaptability to changing customer needs, reliability and the

flexibility of third party logistics provider were mentioned as much more important than pure

cost savings.

Closely entangled together with the point of customer orientation is the point of a 3PL’s

specialization. The special requirements of the own company should be flow into the decision

which 3PL is the right one to choose. Experts often suggest firms to choose 3Pl providers

with roots in the same area of logistics as the department that shall be outsourced.

Furthermore it is worth to discuss if the company wants an asset-owning or a non-asset-

owning 3PL Provider. 3PL provider without own assets are called lead logistics providers.

Lead logistics provider have the advantage that they have specialized industry expertise

combined with low overhead costs, but lower negotiation power and less resources than a

third party provider has, based on a normally big company size, a good customer base and

established network systems. But 3Pl providers tend to shed clients efficiency consciously by

preferring their own assets in order to maximize their own efficiency. In addition to that third

party logistics provider often are bureaucratic and have long decision making cycles caused

by the size of the company.



2.5 Implementation issues

If a company gets the result that it wants to implement a third party logistics provider into

their processes, it has to work on the following implementation issues. These are points a

company that is purchasing the third party logistics services, has to fulfill.

The startup phase of such a strategic alliance is the most difficult and most critical phase. For

implementation considerations there has to be planned a time frame of between six months

and a year! Otherwise you risk quality and reliability losses. The client company has to

clearly identify their needs and expectations to the 3PL exactly to avoid misunderstandings

and disaffections due to miscommunications. Performance measure has to be set. Concrete

guidelines are necessary.

2.5.1 Necessary guidelines:

Aims and methods for target achievement have to be set

Milestones for important actions of the alliance project have to be set

Actions for encouragement of strengths on the one hand and methods for compensation

of weaknesses have to be planned

Concept for the integration of alliance partners have to be developed

Critical parts of the contract have to be discussed and a for both sides responsible

agreement have to be found

A time frame of the contract has to be given.

Both parties, provider and client, must concentrate on the aim of a good collaboration concept

with mutual beneficial. Otherwise if there is no win-win situation one party suffers and

reduce its efforts.[ Just as important as the good communication between client and provider

is the communication within the workforce and employees and not only within the managers’

level. In the best case the communication is informative, motivating and anticipatory. The

integration of employees should have highest priority! To avoid incertitude of employees,

customers and business partners’ changes in respect to structures and reliabilities have to be

communicated internal and external as early as possible. Good communication is essential

within such a project, employees want to know why a company is outsourcing and what the



expectations of this step are.Upcoming fear in respect to employee reduction have to be faced

within the different departments in an early stage, if there is none, because fear of losing

one’s livelihood is paralyzing the working morale. The employees should be motivated and

mobilized to an active cooperation by understanding the change as a chance.

2.6 Motivation and aims of 3PL collaborations

The first point reported about now, is instantly the most stimulating and propulsive reason for

shippers and companies to commit their selves into strategic alliance collaborations with third

party logistics providers.

Often companies, equal what size they have, aren’t able to improve their market position, as

fast as the hard concurrency and competition in the national and international business

requires, alone. Or if they are able this fast adaption to the market requirements would cause

immense and disproportional costs. So the companies try to get their logistics more efficient

and costs economic by working together with third party logistics provider that have the size,

the experience and the know-how to make the clients supply chain more cost efficient, more

flexible and more profitable ( see also the advantages of 3PL in chapter .The 2014 annual

Third Party Logistics Study (subtitle: The State of Logistics Outsourcing) of Capgemini

investigated, that third party logistics clients have an average logistics cost reduction of 11%,

an average inventory cost reduction of 6%, and an average fixed logistics cost reduction of

even 23% by outsourcing their logistics to 3PL providers. Another important point for

shipper is, that their fill rates and their order accuracy increase what is really important within

the hard competition to satisfy, in special the challenging, but also the general customer

.

2.7 Tradeoffs of Inventory:As far the performance measurement of a supply chain is concerned, various parameters

should be taken into consideration to insure the tradeoffs in SCM. In fact tradeoffs are

considered as conflicting goals in Supply Chain Management. According to Simchi-Levi et

al. (2004) there are three tradeoffs in inventory management:

(a) The product variety-inventory tradeoff;

(b) The lot size-inventory tradeoff;



(c) The transportation cost-inventory tradeoff.

a) The product variety-inventory tradeoff:

It is obvious that product variety creates more complexity in SCM. The difficulty in accurate

forecasting of each type of product requires higher aggregate inventory levels to ensure the

same customer service level. According to (Simchi-Levi et al., 2004), the major challenge

that needs to be addressed for a firm supplying a variety of products is how to effectively

match supply and demand for each type of product.

Due to financial constraints, suppliers always pursue lower inventory levels to avoid high

inventory holding cost. And as far the increase in total sales volume is concerned, they are

under temptation to increase product variety also. But it is obvious that when the product

variety increases, inventory levels increase as well, therefore the effect on sales is offset to

some extent by the increase in inventory levels.

b) The lot size-inventory tradeoff: The ideal scenario for manufacturers is to have large lot sizes that helps reduce setup costs

per unit, in fact, typical demand always does not come in large lot sizes, therefore large lot

sizes lead to high inventory, i.e. the larger is the lot size, and the higher is the inventory level

(Simchi-Levi et al., 2004).

c) The transportation cost-inventory tradeoff: Transportation costs can be reduced through full loads. Costs can be spread among the largest

possible volume of products. Therefore, high inventory costs may often arise because

products delivered in full loads have to wait for longer periods of time before they are used.

(Simchi-Levi et al, 2004).

.

2.8 Types of Inventory:Inventory exists in three aggregate categories that are useful for accounting purposes.

Raw Materials (RM) :

RM is the inventories needed for the production of services or goods. They are considered to

be input to the transformation processes of the firm.

Work-In-Process (WIP) :



WIP consists of items, such as components or assemblies, needed to produce a final product

in manufacturing. WIP is also present in some service operations, such as repair shops,

restaurants, check-processing centers, and package delivery services.

Finished goods (FG):

FG in manufacturing plants, warehouses, and retail outlets are the items sold to the firm’s

customers. But the finished goods for one firm may be the raw material for another.

Another perspective on inventory is to classify it by how it is created. In this context,

inventory takes four (4) forms:

a) Cycle Inventory: This is the proportion of total inventory that varies directly with lot size. The concept of cycle

inventory includes lot sizing principles. Lot sizing is all about determining how frequently to

order and in what quantity. Two principles apply.

The lot size, Q, varies directly with the elapsed time (or cycle) between orders. If the lot is

ordered every five weeks, the average lot size must equal 5 weeks’ demand.

The longer the time between orders for a given item, the greater the cycle inventory must be.

The formula is as follow:

Average Cycle Inventory = Q/2

This formula is exact only when the demand rate is constant and uniform. Factors other than

demand rate (e.g. scrap losses) also may cause estimating errors when this simple formula is

used (Krajewski, Ritzman, Malhotra & Srivastava, 2010).

b) Buffer or Safety stock Inventory: To avoid customer service problems and the hidden costs of unavailable components,

companies hold safety stock. Safety stock is surplus inventory that protects against

uncertainties in demand, lead time, and supply changes. Safety stocks are desirable when

suppliers fail to deliver either the desired quantity on the specified date or items of acceptable

quality, or when manufactured items require significant amounts of scrap or rework. Safety

stocks inventory insures that operations are not disrupted when such problem occur, allowing

subsequent operations to continue (Krajewski, Ritzman, Malhotra & Srivastava, 2010).



c) Anticipation Inventory: Inventory used to absorb uneven rates of demand or supply which business often face, is

referred to as anticipation inventory. Predictable, seasonal demand patterns lend themselves

to the use of anticipation inventory. Uneven demand can motivate a manufacturer to stockpile

anticipation inventory during periods of low demand so that output levels do not have to be

increase much when demand peaks. Anticipation inventory also can help when suppliers are

threatened with a strike or have severe capacity limitations (Krajewski, Ritzman, Malhotra &

Srivastava, 2010, 2010).

d) Pipeline Inventory: Inventory that is created when an order for item is issued but not yet placed in inventory is

called pipeline inventory. It exists in the form in the form of materials that move from

suppliers to a plant, from one operation to the next in the plant, from the plant to a

distribution center or customer, or from distribution center to a retailer. Longer lead time or

higher demands per weeks create more pipeline inventory. The formula is as follow:

Pipeline inventory = Average Demand during lead time (Av.D), X Number of periods in

the item’s lead time (L) to move between the two points, or:

Pipeline Inventory = Av. D x L

According to Prof ASHIS CHATTERJEE, Inventory can also be classified as Batch or Cycle

Stock, Buffer or Safety Stock, anticipation Stock and Transportation Stock.

Batch or Cycle stock:

Manufacturing or purchasing an item at a rate higher than its consumption rate, to reduce set-

up / ordering costs. It involves trade-off between inventory and set-up / ordering costs.

Buffer or safety stock:

This is all about maintaining extra stock over the average requirement to guard against

uncertainty. It involves Trade-off between inventory investment and customer service level.



Anticipation Stock:

Anticipation stock is all about maintaining extra stock to meet peak season demand. It

involves Trade-off between Inventory carrying costs and costs related to changing production

levels.

Transportation Stock:

Goods-in-transit arises because of the necessity of moving material from one place to

another. Movement rate depends on inventory carrying and transportation costs.

2.9 The basic functions of warehouse:The warehouse is a point in the logistics system where a firm stores or holds raw materials,

semi-finished goods, or finished goods for varying periods of time.’ (Coyle et al., 2003,

p.285).

Three Basic Functions of Warehouse:

According to Lambert & Stock (1993), there are three basic functions of warehouse:

Movement is necessary to store a product properly. It can be divided into three activities:

i. Receiving inbound goods from transportation carriers and performing quality and quantity

checks.

ii. Transferring goods from the receiving docks and moving them to specific storage locations

throughout the warehouse.

iii. Shipping the goods outbound to customers by some forms of transportation.

Storage is the second function of warehousing. It can be performed in two different ways:

i. Temporary storage means that storing a product, which is necessary for inventory

replenishment.

ii. Semi-permanent storage is used for inventory in excess of immediate needs. It is the safety

or buffer stock

The last function of warehouse is the information transfer. When the product is moved and

stored, this function occurs at the same time. It is important for the management to have

timely and accurate information in order to administer the warehouse activity.

The information can cover a lot of things like inventory levels, throughput levels, and data of

the customer, facility space utilization and also about the personnel (Lambert, et al., 1993).



2.10 Types of Warehouse:One of the warehouse decisions is choosing the type or combination of types to use. There

are three basic types of warehousing: private, public and contract (Bloomberg et al., 2002).

a) Private warehouse : The firm producing or owning the goods owns private

warehouses.

This type of warehouse is main focus on storing the firm’s own goods until they are delivered

or sold (Bloomberg et al., 2002). Coyle et al. (2003) also stated that stability of warehouse

demand must be examined over multiple products and another advantage of using a private

warehouse is the ability to maintain the physical control over the facility.

b) Public Warehouse: If a company without large inventory accumulations or a very seasonal need for warehousing

space that they could not utilize a private warehouse consistently and efficiently, they would

find a public warehouse. Or if a company shipping in small quantities for long distances

would also usually find a public warehouse. The reasons for using public warehousing which

are: (1) avoid the capital investment and financial risks; (2) flexibility of public warehousing

(Coyle et al., 2003).

c) Contract Warehouse : ‘Contract warehousing is one specialized form of public warehousing. Some reasons for the

growth of contract warehouses are: (1) product seasonality; (2) geographic coverage

requirements; (3) flexibility in testing new marketing; (4)management expertise and

dedicated resources; (5) off-balance sheet financing; (6) reductions in transportation costs.’

(Bloomberg et al., 2002, p.76)

2.11 Warehouse Layout:According to Bloomberg et al. (2002), the objectives of warehouse layout and design should

be as following:

i. warehouse capacity utilization must be optimized

ii. Whatever is stored must be protected

iii. The layout should consider space utilization and stock placement

iv. The warehouse should be as mechanized and automated as possible

v. The warehouse layout should lead to high productivity in receiving, storing, picking, and

shipping

vi. The warehouse design should be flexible and allow for improvement.



From above mentioned, the rational utilization of warehouse space is the most important

issue in warehouse layout management. The good utilization of space should begin with good

warehouse visibility.

Baudin (2004) indicated that warehouse visibility includes: labels on the grid of columns

which are supporting the ceiling, dock numbers that remain visible when docks are open,

three-sided overhead zone identification signs, aisle/column/level labels on each slot in a

pallet rack.

2.12 Warehouse Management System (WMS):The computer-based warehouse management system (WMS) has been implemented widely in

many companies. It could assist the warehouse manager to control the various operations,

like receiving, put-away, picking, packing, shipping, storage location, work planning,

warehousing layout, and analysis activities (Coyle et al., 2003). The system could help

managers with workload reductions in terms of data collection, achieving higher accuracy,

faster retrieval, and could support for cycle counting and data mining (Baudin, 2004).

Barcode scanning is used in many warehouses. Its function is to match serial numbers to

customer purchase orders (PO), and the hardware and communication infrastructure to

support a WMS is in place. Figure (6) shows one example of the materials handler scans

barcodes for both location and item number when loading a pallet.

Figure 6: Example of material handler, Source: Baudin, 200



3.TransportationTransportation is a unique element of the logistics sub-system that seeks to move goods from

points of production to points of consumption in the required quantities at reasonable costs.

Air, sea, and land transport offer time, form and place utilities to the cargo handled, thus

increasing their economic value in international markets. In order to achieve these objectives,

transportation facilities must be sufficient, affordable, reliable, regular and equitable interms

of cost and benefits, so that they are profitably engaged in international trade and logistic

operations. The below figure depicts the various options available under different mode of

transportation in international trade operations

Transportation of cargo can take place via air, water, rail, road, and pipelines using cargo

aeroplanes, freighters, barges, boats, ships, trains, lorries, trucks, and pipelines which have

been placed underground, or sea. The major objective for any trader in international trade

logistics is to minimize the overall transportation costs of cargo by selecting the best mode

possible after studying the circumstances and ensuring that the product reaches to the

customer or importer on time.

Transportation forms a major chunk of total logistics cost because it is directly related to

weight or number of units being transported from one place to another. Transportation costs

are generally determined by factors such as distance between the point of origin ad the

destination, nature of cargo, mode of transportation, size, and quantity of the cargo to be

shipped. Transport costs can be carefully controlled by judicious, appropriate, and prudent

modal choices, and should be constantly reviewed as changes in the business environment

take place. Sometimes, in international trade logistics, there are several points of origin and

many points of destination of cargo, particularly, in case of FMCG and household goods that

add a significant level of complexity to the problem of minimizing transportation costs.

Hence, traders and logisticians should also consider transportation rates along with

transportation costs, which are equally important for minimizing total logistics cost.

Transportation rates are largely dependent on the rates charged by the cargo carriers

companies. The below figure lists the bases of transportation cost determination in

international trade logistics.



Figure : Classification of various modes of transport

Figure : Bases of transport rates of determination


Classification of transport

Land Transport

Air Transport

Water Transport

Human and animal transport

Road transport

Railway transport

Pipeline

Inland water transport

Ocean transport

Bases of transport rates determination

Class rates

Commodity rates

Negotiated or contract rates

Freight of all kinds of rates (FAK


The freight of all kinds rates are usually lower and the class rate of cargo transportation are

usually higher than other types of rates. Class rates are the prescribed standard rate for any

commodity moving between any two destinations. Commodity rates, on the other hand, may

attract special offer from transportation companies for either continuity of business on regular

basis or for large-quantity shipments. It is unfortunate to note that MSMEs which constitute

around 40 percent of India’s trade, cannot take advantages of commodity rates due to scale

and unitization problem. As a result, they are compelled to utilize the third type of rate,

known as a negotiated or contract rate, which is usually higher than commodity rates. With

increased containerization of trade, which is usually higher than commodity rates. With

increased containerization of trade, a fourth class of rates has come up. This is known as

freight of all kinds, whereby the rates are usually charged per container basis between the

agreed distances, irrespective of what is transported, subjected to hazardous material rules.

Transportation costs vary greatly as per the choice of transport-air, road, rail, or water

transport. The efficiency of any type of transport system largely depends on the quality and

availability of a good transport system. Irrespective of the mode of transportation, every

transport system has some common elements. These elements of the transport system have

considerable impact on the effectiveness and efficiency of different modes of transport and

their utility to users. They are as follows.

3.1 Vehicles for transport Each type of vehicle has got some features that can influence the

decisions of logisticians or traders in employing a particular type of vehicle for transportation

of goods. The dimension of the vehicle, its capacity, and technological advancements are

some of the factors which have a direct relationship with the logistician’s decisions to use a

particular transport system. In water transport the size, speed, and type of ship are important

in knowing what types of ships will be suitable for transiting the cargo, keeping in mind the

nature of the cargo. In case of road transport, it is the capacity, moving dimensions, and speed

of the vehicle which are of great importance. In case of rail transport, it is the existing railway

line capacity, type, and general availability of wagons which drive a logistician’s decisions.

The capacity of transport vehicles, time, and sped that it takes to transport cargo are the

determining factors of throughput of a particular vehicle in a particular section. Capacity

expansion even through best of research efforts has constraints in certain mode of transport,

for example, roads and railways. However, there are no capacity constraints in water

transport as capacity of ships is constantly on the rise due to new technological



developments. The choice of the mode of transport and vehicles to be used for international

logistics operations are largely dependent on factors such as cost, speed, trade routes, risks

involved, and nature of cargo, and time of travel. The choice of a particular mode is based on

analysis of these factors and resultant advantages from one type over another.

3.2 Trade routes Trade routes play an important role in movement of carriers from one point

to another point. The various types of trade routes can be surface roads, navigable waterways,

railway links, and roadways. Logisticians have to select trade routes that offer operational

efficiency without any obstacles for transport of cargo from one location to another location.

For example, India has traditionally used the road transport through Pakistan for transiting

wheat to Afghanistan as the available infrastructure is better, and wheat can be easily

exported from Punjab rather than first bringing it up to kandla, or say Mumbai, and then

sending it to Bandar-Abbas and transporting it via road to Herat in Afghanistan. However,

cargo blockage by Taliban at Khyber Pass (Pakistan) has compelled India to send wheat to

Afghanistan only by sea routes. Sea and air transportation routes are natural modes but are

subjected to man-made obstructions in the changing global scenario. The constant piracy at

Suez Canal by Somalian pirates has compelled many countries and shipping companies to

follow a long trade route via Cape of Good Hope as ship hijacking is common in Gulf of

Aden and Suez Canal access routes. It causes 18days of delay in reaching Europe and the

coast of North America. Land routes are also not free from regulatory barriers as it takes

45days for an indian exporter to transport a container from ICD dadri (Ghaziabad) to Dhaka.

The same journey may have been completed by trucks within a maximum of only eight days.

Hence, trade routes used in transporting cargo are important determinants of effectiveness of

transportation system. Choice of proper trade routes determines the speed, cost, and capacity

of mode of transportation and vehicles to be used. Logisticians should factor that the selected

trade route shall be have adequate capacity to absorb the additional traffic without any delay

as over congestion of trade routes may result in higher costs of logistics operations.

3.3 Port and terminal facilities No mode of transport can be effective until the proper

facilities for handling of cargo such as loading and unloading of cargo are not available.

Terminal facilities have to be provided for loading and unloading of trucks, wagons, etc. on a

continuous basis. Transportation of heavy and bulk cargoes depends on loading and



unloading facilities available at terminals. The terminal facilities also effect the cost of

transportation. If these facilities are provided, then the cost of transportation can be

minimized. Besides these, adequate storage space, loading and unloading facilities, sufficient

number of marshalling yards, and weighing equipment must be available in these terminals.

In India, such facilities are not adequately available and this causes more time for clearance

of imported and exportable cargo for clearance.

3.4 Turnaround time Logisticians and traders should also take note of turnaround time

which is the time from arrival to return of ship at a port as it effects the total transit time in

moving cargo from one location to another. Turnaround time is higher on Indian ports when

compared with similar types of countries as Indian ports do not have adequate terminals and

jetties to accommodate multiple ships at the same time. As a result, ships have to queue-up

for unloading or loading. Additionally, mechanized loading and unloading operations

significantly reduce the turnaround time. These are gantry cranes, conveyor, and mechanical

belts for loading coal, cement, iron ore, aluminum, and other bulk products, that are prime

basis of decision movers in exporter decision criteria for a particular mode of transport to be

used.

3.5 Transit time and cost :Transit time and costs are important factors in the choice of mode

of Transport. Air transport is the fastest but is expensive; water transport is slow but cost

effective, and Rail and road networks are not available all over the world. There is a detailed

discussion on transit Time and cost for each mode of transport

3.6 Nature of cargo

The nature of cargo- regarding whether it is perishable, non

perishable,bulk,Break-bulk, hazardous, inflammable, high value, high volume, etc. – affect

the choice of a particular Mode of transport. The kinds of packing used and the shelf life of

product are also important Elements while engaging a particular mode of transport

3.7 Information Monitoring



In a globally competitive environment, traders and logisticians have to constantly monitor

Information On issues related to customer services, packaging, labelling, material handling

equipment, inventory Control, warehousing facilities, effectiveness of transportation, and

Other elements of trade logistical Sub-systems. Such information monitoring may include the

Following.

1. Information processing to various departments of the firm about the date of delivery,

date of Shipment, packing, labelling and marking requirements, shipping instructions,

quality standards, and Ensuring that production may start well in time to fulfil the

deadlines of orders.

2. Information about the present stock position of raw and finished materials at each

location of the Firm.

3. Information monitoring with regard to customer satisfaction level and looking after the

Changes Required in the existing system based on consumer’s inputs.

3.8 CHOICE OF MODE OF TRANSPORT

3.8.1Introduction

With the ongoing process of economic liberalization and globalization, trade logistics has

come to the Forefront in the international business strategies of multinational enterprises and

small and medium Enterprises (SME) units. In the present environment, efficiency in

logistics operations plays an Important role in determining a firm’s competitiveness in

international markets. In order to emerge as a major player in global trade, nations are

investing billions of dollars in their trade logistics Infrastructure. This investment is vital

because a smooth and an effective transportation system is Essential for planning

an efficientproduction and distribution system to tap global markets. It helps

exports firms to be competitive with just-in-time production system and uninterrupted



customer service and helps them manage the overall logistics

3.9 Transporter Details

Transporter Details

SL No.

WH Transporter Name Vehicle Number

Vehicle Size ( Feet )

1 CHANDIGARH GULZAR TEMPO CARRIER

CH03U2057 14CH04C7443 14CH03C8640 10CH01TA4526 7

2 DEHRADUN SIDHARTH TRANSPORT

UA07P 9557 TATA DI 207UA07Q9072 TATA DI 207UP07G 4468 14UP07K9443 14UK07CA 2956 19UK07CA 2958 19HR58 4400 24HR58 4402 24

3 LUDHIANA INTERZONE TRANSPORT CO. HR68A0048 18HR37A4282 18HR04N0384 24HR04N0602 24HR04N0883 18PB65H7323 24PB65H7327 24HR37A5354 18HR375356 32HR38Q0045 32HR37A5356 32CH01M8756 18PB65H0364 18PB65L9948 18PB65L5832 18



PB65L5834 18

NORTHERN CARGO

HR37A4365 24HR37A4367 24HR37B2329 18HR373716 18HR68A2686 14HR378568 14HR37A1500 18HR37A1501 18PB65H0365 18HR687825 24HR687824 24PB65L7516 18HR687826 24PB65M9939 18PB65H7841 18PB65H7843 18HR37B4366 24

TRANS ROAD LINE

HR68A2272 18HR682272 18HR04N0311 18HR04N1443 18CH03H0435 18PB65K5286 18PB65H2758 18HR68A1984 18HR38K2985 18HR37A6129 18

5 LUCKNOW KAMAL SONS UP32AN5937 PICKUPUP32DN1682 PICKUPUP32EN0482 PICKUPUP30T5223 22FTUP32BN0211 19FTUP32CN4996 19FT



UP30A6923 22FTUP30T3149 22FTUP32AN7669 22FTUP32CZ2399 22FTUP32CZ6701 22FTUP32CN9621 TATA ACEUP32CZ5176 TATA ACEUP32CZ9355 TATA ACEUP32DN3154 TATA ACEUP32DN3297 TATA ACEUP32DN4021 TATA ACEUP32DN4022 TATA ACEUP32Z8858 CANTUP32CZ6674 TATA ACEUP30T3148 22FTUP32AN7589 19FTUP32EN7888 TATA ACE

5 PARWANOO MAHAJAN ALLIED1417

6 JAIPUR KAPOOR FREIGHT CARRIER RJ14GE2020 32RJ14GB2020 32RJ141G8688 32RJ14GC1734 32RJ14GB2015 32RJ14GC9603 32RJ14GC2056 32RJ14GF6156 PICKUPRJ14GD2155 PICKUPRJ14GB8682 PICKUPRJ14GD3044 PICKUPRJ08GA0298 PICKUPRJ14GB8100 PICKUPRJ14GA4572 TATA ACERJ14GA6255 PICKUP



RJ14GC8617 PICKUPRJ14GC3885 TATA ACERJ14GE2032 TATA ACERJ14GE6432 PICKUP

7 GHAZIABADNEW RAJDHANI TRANSPORT SERVICE

UP16K-9582 15 FtDL1LG-8845 15 FtUP16AT-3142 17 FtDL1LR-0073 17 FtDL1LR-0072 17 FtDL1LG-6194 17 FtUP16BT-0330 15 FtDL1LM6611 22FtDL1LR5036 17FtDL1LR5037 17FtDL1LR5038 17FtDL1LG3594 14FtUP16BT0768 17 FtDL1LE-3908 17 FtDL1LE-4668 17 FtHR38F-0245 17 FtHR38G-9997 17 FtHR47A-0331 17 FtHR55-7437 17 FtHR55E-7098 17 FtUP16AT-2856 17 FtUP16AT-3143 17 FtUP16AT-3144 17 FtUP16AT-3145 17 FtUP16AT-3479 17 FtUP16AT-4446 17 FtUP16AT-4447 17 FtUP16AT-5410 17 FtUP16AT-8996 17 Ft

8 Delhi Amar Cargo Transport DL1LP2020 17



DL1LP2221 17DL1LP2225 17DL1LP3267 17DL1LP2547 17DL1M5655 17DL1LP2828 17DL1LP2283 17DL1LP2472 14DL1LP2474 14DL1M6036 22DL1M6112 22DL1M5727 20DL1M5728 20DL1M6180 20DL1M6181 20HR69B1057 20HR69B1058 20HR69B1059 20HR69B1060 20DL1LR3902 ECO_VanDL1LR3903 ECO_VanDL1LR4913 ECO_VanDL1LR5637 ECO_VanDL1LR3957 ECO_VanDL1LR4120 TATA AceDL1LR4121 TATA Ace

Jatin Auto Service DL1LN3613 Auto_6 feetDL1LN3614 Auto_6 feetDL1LN3610 Auto_6 feetDL1LN3609 Auto_6 feetDL1LL6891 Auto_6 feetDL1LN1717 Auto_6 feetDL1LL3382 Auto_6 feetDL1LF5071 Auto_6 feet



DL1LL8376 Auto_6 feetDL1LL0422 Auto_6 feetDL1LE7815 12HR69B1106 22HR69B1105 22DL1LR8075 17DL1LR8074 17DL1LN7082 Auto_6 feet

New Rajdhani Transport Service

DL1LE 8845 17DL1LE 8846 17DL1LG6194 19DL1LR5036 19DL1LR5037 19DL1LR5038 19DL1LR5039 19DL1LG0072 19DL1LG0073 19

4. Research Objective:The research objectives for this project are listed below:

OBJECTIVE 1: To study the Warehouse details & Manpower details which includes size of

warehouse, Inventory, Daily GR, Daily GI, Number of Docks

OBJECTIVE 2: To study Warehouse Management System in Ghaziabad D.C covering two

broad ranges

OBJECTIVE 3: To study about Inbound vehicle management and space planning for

inbound stock, as well as same for the Outbound Management



OBJECTIVE 4: To observe order cycle management at Ghaziabad D.C which includes

warehouse order processing time, lead time management

OBJECTIVE 5: To study KPI for operations which is very important in warehouse

operations

OBJECTIVE 6: Returns management procedure which includes insurance claim, Damage

Disposal, Second sales, Servicing, Repairing




Research MethodologyResearch Methodology

In this Chapter we will be discussing the outcomes of our Research Methodology. The author will present the conclusion about the whole project and summarize the implications of the research.


5.Research Methodology:

OBJECTIVE 1:

a) Warehouse details:

Size of

W/H

Inventory Daily GR Daily GI No of Docks

QtyDays of

InventoryQty Vehicle Qty Vehicle GR GI

64668 50000 15 Days 5200 5 6500 9 2 3

Required time for loading per truck: 50 minutes

Required time for unloading per Truck: 60 minutes (32 ft)

Number of bins: more than 108

Source: warehouse report

b)Manpower details:Logistics Head: Mr. Amit Kumar, Mr. Praveen Kumar

Partners: SDS (staff), Satya Sai (labour), Swift (security), NRTS (Transporter).

Total Staffs

Sup + Labors + HK +

Electrician Security

Total 55 11 29 15

Hansol 7 7 0 0

Partner 48 4 7+18+3+1 15

Source: Warehouse report.



From the empirical findings; we got to know that HANSOL Logistics India is in partnership

with various organizations. As a 3PL it provides End-to-End supply chain solutions to a wide

spectrum of industry segments. Its FMCG partner signed a deal with Hansol to fulfill its

requirements. Hansol owns in total 14 warehouses across India and the major part of their

revenue is coming from the main partner FMCG Giant. Ghaziabad DC warehouse is one of

those various warehouse especially for inventory management activities.

c)Ghaziabad D.C Warehouse Layout:As what has been mentioned in theory part, warehouse visibility is very important to improve

the efficiency on warehousing operations.

There are several ways to strengthen the visibility inside the warehouse:

d) Location labeling on the warehouse floor: (Bins) Distinct floor mark in warehouse can help forklift drivers to find the correct zones, regions or

aisles easily. Usually, the bright yellow will be used for the floor mark color. At the same

time, the grid of columns is one popular way for workers to identify the areas. The grid

location labels can be affixed on all sides of columns. Figure (7) shows the example of

column grid labeling. Compare with this example, we can observe from Figure (7) that

Ghaziabad warehouses are lack of this kind of identification labels.



Figure (7): The example of column label grid.

Source: Baudin, 2004.

Figure (8): Ghaziabad Warehouse

Source: own made from GZD warehouse.

In Ghaziabad Warehouse the space is divided into different bins. To make the bins

management easier, all these bin numbers are recorded in the scale system ILS (Integrated

Logistics System). This makes items tracking and identification and inventory management

and control much more efficient.



e) Zone Identification: According to author’s experience, one common solution for zone identification is to hang a

“name card” above every specific zone. Maybe the flat “name card” as shown in the figure

(9) cannot be seen from every direction, especially in the large rooms.

Figure (9): Zone Identification system in GZB D.C

Then we can use the triangular signs above the racks. This kind of shingle is visible from all

directions. Figure (10) gives us an example of “name card” for zones. Unfortunately, we did

not find this zone identification signs in Ghaziabad warehouses.

Figure (10): The example of shingle of zone.

Source: Lining Bai & Ying Zhong, 2008

f) Rack identification



Rack identification is the most useful and effective method for identify locations in pallet

racks by three coordinates for aisle, column within the aisle, and level within the column as

shown on the figure (11) below.

Figure (11): The example of identify locations in pallet racks (rack identification), Source: Lining

Bai, 2008.

When the author visited Ghaziabad warehouse, we encounter some problems about the rack

identification. In such a well-known 3PL organization like Hansol Logistics, the use of racks

should be common to insure the safety while stacking inbound inventory in the warehouse.

Surprisingly the author came to realize that Ghaziabad D.C is not making use of these racks

in the warehouse.

Also there is no item location guide. Some items’ number was simply shown on the label.

Figure (12) shows us one suitable item location guide board on the side of racks.



Figure (12): The example of item location guide; Source: Baudin, 2004

OBJECTIVE 2:

5.1 Warehouse Management Systems (WMS): The warehouse is using two different systems simultaneously SAP and ILS. The SAP system

is from the partner Samsung and ILS is from Hansol Logistics.



Ghaziabad D.C uses the barcode scanning system which can make the inventory control

operation efficiently and accurately. The SAP system is used for the whole inventory

management purpose, data maintaining and report generation while as ILS is used to:

Capture Accessorial Charges

Full Real Time RF Functions

Automatic Invoice Creation

Blind Receiving

Cycle Counting and Physical Inventory

Multiple Billing Parameters

Multiple Custom Billing for Each Owner

Kitting and Assembly

Ad Hoc Report Writing

Integrates Container and Yard Management

Manage inbound (GR process), Outbound (GI process) and also for bin management

purpose, etc.

The warehouse management system in Ghaziabad D.C covered two broad ranges:

1- Warehouse Management Activities, covering physical warehouse management

activities and Inventory management.

2- Key Performance Indicators Management, covering transactions management;

5.2 Warehouse Management Activities:

a) Packing stock management:

Box damaged inventory needs to be segregated and separated from saleable inventory at the

time of goods receipt itself. These inventories should be shifted to box damaged category

immediately on GR in the system. Any inventory damaged after that or while handling inside

the warehouse also needs to be shifted to packing and converted in the system itself.

Warehouse needs to keep the technical report to shift any such stock to packing category.

These units will then go for a re-packing activity then only it should be brought back to

saleable category.



b)Packing / repacking / packing box mgmt. / system conversion etc.:

Packing / re-packing activities to be done in the supervision of return management person. He

also ensure that the physical conversion accompanies a system conversion and a signed off

document.

a) Repairable inventory management:

This stock is the GRMS returned stocks or insurance sets. Service is responsible for the

liquidation. But warehouse needs to follow-up and ensure the ageing days are not increased.

b) nCategory stock management:

Done base on GRMS grading. Liquidation needs to be done through BCH/ BLE etc…

c) Non repairable stock management Scrapping / scrap sale / write off:

Logistics is responsible for the liquidation of “D” category stock. Periodic approval needs to

be taken for scrap write off.

d) Value added activities :

Other value added services at the warehouse are supporting re-work activities, snickering, pallatization & bundling etc… Depending on the company requirement these things needs to be undertaken under the supervision of RLM and Hansol logistics.

ZPOP: Promotional items, Gift and finished goods converted to ZPOP should be handled as

per the guidelines of the marketing team. Storage of such goods should be at the prescribed

area and all movements to be done based on System transactions.

e) Sample goods management:

Products in sample category moved as per the Hansol Logistics sample management team.

Inventory management is the prime responsibility of the warehouse. Apart from proper

receipt, storage, and re-distribution warehouse needs to undertake the following activities to

ensure that accuracy and consistency of the inventory:

Daily / weekly stock counting

Cycle counting / physical stock take

Reconciliation

Warehouse in charge should ensure the following:



Conduct 100% stock count on by every 7th and by every 15th of the month.

100% SKU wise inventory accuracy should be maintained (quantity terms).

Any unaccounted stock in the warehouse should be escalated to HO / regional logistics

immediately on occurrence of the event.

Any un-resolved variances need to be reported to Regional / HO co-coordinator immediately.

OBJECTIVE 3:

5.3 Inbound Management: (Inbound vehicle management and space planning for inbound stock).

Inbound management starts from the point of checking and monitoring in transit (shipments

coming to the w/h) stock movement. This consists of checking with the respective carrier /

transporter for timely delivery, check the warehouse space availability in advance and plan

space for next day arrivals.

Sometimes warehouse needs re-arrangement of goods in order to create adequate space for

inbound goods and aligning resources for next day receipt.

(See appendix A for the complete inbound operation flow chart)

Figure- 14 Process flow Inbound, source: own prepared.

a) Resource planning

Resource planning here in GZD D.C means organizing and scheduling the required resources

like labor and the time of activity etc…


Receipt of ASN in

ILS System

Daily Inventory receiving

plan

Appointment

scheduling

Good check in & Inspection at staging

area

Goods location & put away

confirmation at

designated locations

Receipt close


b) Vehicle reporting

Vehicle reporting is the starting point of goods receipt at the warehouse. There should be

proper gate entry for the in-coming vehicle. The shipping documents needs to be send to the

warehouse manager immediately on arrival.

Warehouse manager has to decide the unloading priority based on the company requirement.

If there is no priority received from the company the goods receipt must be First in First Out

rule. If there is any priority given by the company warehouse manager t will decide how to

manage that.

c) Unloading/ Segregation/ Inspection:

All Normal receipts must be unloaded at staging area for inspection and segregation. This can

be achieved by manual unloading and mechanized unloading.

To ensure safe handling of goods, warehouse personnel first verify the height of the

warehouse dock viz-a-viz height of truck body level. If the Warehouse dock and truck body

level is not matching, then necessary equipment such as a metal/wooden ramp should be used

to adjust the height so that the unloading people can easily firm up reach inside the vehicle

pick / hold the products while unloading from vehicle.

While unloading Warehouse supervisor to ensure that the products, especially larger in

volume and heavy in weight must not be dragged by pulling the straps. Products should be

moved only with the help of a trolley or pallet jack as the case may be.

Security guard at the gate should count all the material while unloading and match model

wise as per the documents received along with the vehicle.

Any abnormality found at the time of unloading is to be reported back to the origin and the

concerned person in Region and Hansol.

Unloading supervisor must sign and release acknowledgement to vehicle driver, with clear

remarks in case of damage or loss etc.

d) Inspection and segregation of goods:

All goods must be physically inspected and model wise segregated first for the counting

purpose. Each material then must be checked for the packing damaged / shortage etc…



e) Location management

Location management should be controlled by WMS system. However considering the

physical constraints the same can also be done manually

After unloading material, depending upon the movement nature and product type the

warehouse supervisor should ensure proper selection of location within warehouse. Given

below are some guide lines:

f) Put Away guide lines:

ACs and other heavy items are stored within close proximity to dispatch gates to ensure less

handling damages.

Small items such as HHP, HDD, OMS, CAMERA, MP3 etc., should always be stored in a

strong room and should be away from dispatch gates for security reasons. All access to this

area is permanently being controlled by security.

In case of any damages in the consignment received, damage stock is separated from good

stock and being stored in repairable location. Necessary system updation should be ensured.

After necessary approval this stock should be moved to necessary location such as repairable,

packing & insurance.

g) Goods stacking

Products are stacked as per Stacking Norms mentioned on the carton as shown below

(wherever possible to be stacked to full height to ensure maximum space utilization).

A single stack must not contain two different models

Different lots of same models to be stored in separate BINS.



Figure (15): Example of stacking norms mentioned on the carton of a washing machine.

h) Goods Receipt in system

Goods receipt in WMS system to be confirmed in SAP system also to make sure it is

available for sales. This has to be a mandatory process by which one need to put the GR

Number on the receipt documents before filing.

i) Check list maintenance:

The Good Receipt (GR) information summary needs to be recorded and the GR activity

checklist should be completed by the end of the day.

j) Insurance claim:

Claims made by the warehouse should have the following documents in original and a copy

should be maintained by the warehouse in charge:

Copy of GR

Copy of Invoice/STN

Copy of monetary claim lodged on the transporter along with proof of dispatch of this

letter through government registered post.

Damage/shortage certificate from transporter

Any other documents required by the surveyor for quantification of loss & provided

by warehouse personnel.

Technical report from service for claims other than shortages. (see the figure below)

Copy of FIR lodged with police (if applicable)



Photographs of damaged goods.

Survey report (if applicable).

Copy of any other correspondence related to the claim.

Figure (16): Example of Technical for insurance claim purpose.

OBJECTIVE 4:

5.4 Order Cycle management at GZD D.C:

a) Warehouse Order Processing Time:

Definition:

This indicator measures the average amount of time (e.g., minutes, hours, days, weeks) from

the moment an order is received at the storage facility until the time the order is actually

shipped to the client. The order processing time can be calculated for a specific shipping

facility averaged across orders or on average for orders to a specific client or for a specific

product.

Formula:

∑ (date & time order is shipped – date & time shipping order was received)

____________________________________________________________

Total number of orders processed



Purpose and Issues:

This indicator helps monitor the order processing performance and the efficiency of a

shipping facility. It also helps identify opportunities for improving staff performance in order

management and a facility’s response time.

Data Sources Data Requirements

Order requests Date and time shipping order was received

Shipping log reports Date and time order is shipped

Total number of orders

Since Hansol Logistics India is not a make to store company also it’s not buying its products

from a supplier, they are therefore not incurring any ordering cost. So order cycle

management here is resumed to the order processing time management of their Dealers,

vendors and distributors.

The order cycle often answers the question “How often should we order?” while the EOQ

method answers the question “How much should we order?” For example, the total sales

value in 2013 was INR 13,615,585,687.76, the average daily inventory must be at least INR

37,302,974 (INR 13,615,585,687.76 / 365 days). The longer the order cycle the larger the

inventory requirements. Thus, if the order cycle is 15 days, the average inventory must be at

least INR 559,544,617 (37,302,974 X 15 days). If the order cycle is shortened to 10 days,

then the average inventory requirement is at least INR 373,029,745 (37,302,974 X 10 days).

k) Order Execution Planning:

Order execution planning refers to the preparation of order processing as per customer

requirements by using warehouse resources & capacity. It includes Order administration,

Vehicle management, goods picking, validations, loading, documentation and shipping.

Order Administration refers to following:



l) RDD: Requested delivery Date:

Warehouse needs to check each and every order with their RDD. If RDD cannot be met as

per the LEAD TIME the order needs to be send back to sales for necessary correction of

RDD as per LT.

m) Lead time management

The Lead Time for each customer has to be calculated based on the order processing time,

loading time and actual transit time. All physical constraints like check post, control zone, no

entry zone etc. To be considered for the final Lead Time.

n) Customer delivery appointment / delivery confirmation- only for special cases:

Customer appointments to be taken for the delivery of goods for special delivery orders and

high volume and value orders so that waiting time can be reduced and productivity of the

effective delivery can be improved.

o) Order rejection logics:

Order should be rejected on the following conditions.

Customer refused to take delivery / refused at the time of delivery confirmation /

appointment

Requested by the creator of the order for various reasons

RDD is lower than the actual delivery LT

MOQ (Minimum Ordered Quantity) -If order quantity is less than 3 units or the total

order value is less than Rs.50000/-

Special guidelines

On time GI and out bound delivery exception report needs to be run every day and execution

has to be bases on that. While prioritizing other orders, these exception orders must be

executed.

Outbound activity is based on the daily scheduled ship list from system and all exceptions to

be managed manually. Warehouse must complete the GI due list to manage the KPI.

p) OD follow up & updation :



Run IOD exception report and follow-up and complete the IOD as per LT. Report issues to

next level for resolution. OD updation should be based on daily IOD due list, this list needs to

be updated on normal course on the system to complete the KPI.

q) POD follow up / collection & updation:

There are routine activity and weekly review on pending POD. Exception report from system

and escalate the issues to BLE > REGION –AND THEN HO also.

r) Urgent delivery orders (exception ):

Urgent delivery means delivery of the orders by special means irrespective of LT and also

supersedes the FIFO rule. This has to be managed as per the requirements time to time.

FIFO: FIFO rule is to be followed while executing normal order.

s) Order processing & pick list generation:

Order processing is selecting a group of orders and waving together to material picking. You

can do order processing based on various route planning. Urgent orders can be executed

separately. Once wave is cleared the work will be created and pick list can be printed from

ILS.

5.5 Outbound Management:

(See the complete flow chart in appendix A)

a) Material picking assignment & labor management :

Once pick list is generated the same can be assigned to various material picking groups lead

by warehouse supervisors. Supervisors will have a team of people who actually pick

materials physically.

b) Additional labor for peak days / month end etc .:

W/h manager should work out the requirement of additional labour force required for peak

days / month end in advance.

c) Picking & scanning:

Supervisors direct labors to the picking location (BIN location) and get the materials

physically picked up from BIN location to the destined staging location. Materials will be

picked up in the order it is pick list. In the staging location, material will be arranged in the



same order. Once complete picking is done, the same picking work should be completed

through ILS.

Once picking work is completed the shipment status will be shown as “loading pending”.

d) Work monitoring / handling / loading to vehicle:

The warehouse supervisor / picking group leader should

control and monitor the entire picking work, product

handling, staging and loading to the work. Once the

group picking and vehicle loading is completed he

should sign the document and submit back to the

warehouse in charge by mentioning the vehicle details

on the pick list itself.

The vehicle should be closed and sealed in presence of

the warehouse security guard and picking supervisor.

Adequate buffer stock, edge protectors and corner

angles is to be used for shipping.

Figure 17: Example of Forklift used to carry inventory, source: Baudin, 2004.

Figures 18: Loading going on in GZD D.C

e) Vehicle covering / corner angles & goods protection:

Adequate protection is to be done for the goods while shipping through trucks especially

when shipping upcountry locations. In case if you are using open body trucks, after loading

ensure closure of the body with proper weather proof tarpaulin to avoid any damage due to



rains or water seepage. Corner angles are to be used for shipments where material is shipping

in open body trucks. For tarpaulin usage, ensure corner protectors are in place while tying the

tarpaulin to avoid carton damage. You should also ensure that nobody stands on the products

loaded while tying tarpaulin.

f) Goods Issue and Invoice generation:

Once loading is completed, warehouse needs to:

Complete the GI in WMS system

Physical shipping (LR/documentation)

Ensure proper documentation for dispatch & release vehicle

Data maintenance locally in Excel down load from ILS by customer / per month

Figure (19): Process Flow-Outbound, Source: own prepared.


Receipt of orders in ILS

Order scrutiny, cleareance and rejections

Route planning/ scheduling wave creation as per route and release work

Pick list printing & picking work from location to staging area

Load completion and shipment closing & invoice printing

Release shipment from w/h

IOD confirmation & updation

POD receipt and reconciliation


OBJECTIVE 5:

5.6 KPI FOR OPERATIONS:

KPI Target Concept and Formula

On time GR 95% • unload the materials within 24 hours from the report date of a vehicle

• total received qty on time/total received qty corresponding of period GR date * 100

Vehicle Detention amount • The materials arrived at a warehouse should be unloaded on time

• Rs 700 per day after 24hours, Rs 1,000 after 5days from the report date

Inventory Consistency

100% • The materials kept should be matched with the book which is maintained by system exactly

• Sum(absolute value of SEC-3PL inventory difference)

/ Sum( MAX(SEC, 3PL inventory quantity by model))

On Time GI 100% • The materials should be delivered in same day whatever the orders are coming before 4PM

and be delivered till 1PM tomorrow if the orders are coming after 4PM

• Sum(Planned GI Date - Actual GI Date <= +- 1) / GI Qty corresponding of period GI Date

On Time Outbound

Delivery

99% • The materials dispatched should be unloaded at a dealer’s point within the lead time set

• GI Qty. satisfying( RDD - POD >= 0 ) / GI Qty with RDD is in the corresponding week

On Time IOD Receipt

99% • A transporter should report at the same day when the materials are unloaded at a dealer’s point

• [IOD receipt date - delivery completion date within IOD ≤ 2 days / GI quantity of DO

within corresponding period of IOD receipt

On Time Return • The materials should be picked up within 10days from the date when a return DO creates

• [ 0<= [Return GI – Return DO] <= 10 ] satisfying GI Q'ty / return GI Q'ty within the period of

return DO GI

Sales OTRQ • The material should be delivered within RDD and IOD should be updated within 2 days

• GI Q'ty satisfying IOD <= RDD AND IOD receipt within 2 days / GI quantity of DO in case

that the RDD is within the corresponding period



Table (7): Key Performance Indicator for operations, Source: company report.

OBJECTIVE 6:

6. RETURNS MANEGEMENT:(See the whole process flow in appendix A)

The returns management although a small part of the complete warehouse management, but as a process it has a lot of activities involved within warehouse management such as: -

Insurance claim

Damage disposal

Second sales

Servicing

Repairing

This process starts with categorization of returns which are: -

Returns is categorized into two category Commercial and Technical

a) Commercial Returns: We have Samples/demo and Damage return.

Sample /Demos :

Consist of those goods which are given to dealers for the purpose of demonstration of that product.

Damage Return :

Are those goods returned by dealer due to Transit Damage which include damages like outer damage of the box, scratch or dent due to handling, accidental damages.

b) Technical Returns : TR are those returns due to goods received with technical issues; these goods are inspected by service team. Based on that inspection technical team makes First Technical Report /T.R. 1 which is then put into S.A.P. where these reports are analyzed in S.A.P. and the results come in the form of another technical Report/T.R.2 with the help of this report good is placed either in B (second Sales) category or D (disposable) Category.

These returns are kept in warehouse in three different categories B, C and D



B (Second Sale)

C (Insurance Claim)

D (disposable)

c) Second Sales: -

It consists of those goods which are repaired goods. If it is outer box damage then it is replaced there itself within the warehouse.

If the damages are related to technical fault then it is sent to Samsung’s repair centre where after being repaired it is sent back to distribution centre where these goods are kept under B category for second sales.

d) Insurance claim : -

The goods that are damaged due to accident are kept under C Category where it is inspected by insurance company and the claim is approved where in this damaged good goes in category B or Category C depending upon whether the good is resalable or disposable.

e) Disposable:

The goods that come under D category of returns are those goods that go to the scrap dealers once they are dismantled. The process of dismantling involves putting dent on the outer body of that good and hammering of all working part to ensure that no component is in working condition.

The most number of Transit damage occurs in products like fridge which in an average around 20. It includes both Disposable and repaired products.

Other damages include panel and mobile damages mobile which averages around 10.

f) Different damage reasons The damage of goods can be of various reasons such as: -

1. Damage due to shipping in heavy rain

2. Improper unloading / in transit damage

3. Factory Issue Bay Box damage in Sealed master carton

4. Trade return due doubt in bay box

The highest number of these is due to in transit damage.



6.1 Housekeeping and Maintenance Plan:According to the warehouse management policy followed in Ghaziabad D.C, Housekeeping

and maintenance are all about daily cleaning of the warehouse and BIN accuracy

maintenance and non-sellable area management, etc.

a) Cleaning :

Cleaning is very important in the warehouse. This has to be a mandatory routine work and

same has to be monitored properly. This includes, cleaning of warehouse office, warehouse

floor, goods stored in the warehouse and warehouse complex, record room, wash rooms etc…

Dusting of all stacks (top of the stack) should be carried every day in the first hour of opening

of the warehouse.

b) Hygienic environment:

Provision for basic amenities like wash room, drinking water etc to be provided at the

warehouse. Warehouse should be maintained in a hygienic way, by regularly cleaning,

dusting the aisles, removing unwanted/torn packing material etc., if any.

Cleaning and segregation of stocks at returns column and various non-saleable storage areas

is mandatory. Any product which is lying without outer carton needs to be sealed in

polythene cover and properly sealed by packing tape. No loose accessories to be kept open.

c) BIN accuracy:

Bin accuracy is important and all material movement is done based on bin information and

physical stock arranged in bins. If there is any mismatch in the bin it will affect overall

warehouse efficiency.

Warehouse supervisor should periodically reorganize the material in the warehouse based on

the movement of each model to make space to receive incoming material to avoid any vehicle

detention.



d) Visibility of displays:

The warehouse supervisor always makes sure that all visual displays are correct in nature and

cleaned and checked periodically.

Regular maintenance of company assets like forklift, clamp lift, hand trolley, hydraulic pallet

puller, stacking ladders, barcode scanners, Digital camera and other devices needs to be done.

The contact numbers and of each equipment manufacturer or vendor who is servicing it needs

to be made available or displayed at the warehouse.




Data Analysis andData Analysis and InterpretationInterpretation

Following is the data Analysis and Interpretation. The author will conduct the analysis guided by theoretical framework. The analysis part is based on our empirical findings. Furthermore, the author will present his suggestions upon the problems identified.


DATA ANALYSIS & INTREPRETATION:

The author will conduct the analysis guided by theoretical framework. The analysis part is based on our empirical findings. Furthermore, the author will present his suggestions upon the problems identified.

11.67% 5.06%0.76%

70.44%

0.14%0.07%

3.18%0.46%

0.02% 0.14% 0.02% 2.79%5.25%

Percentage

CS Return (TB) Customer Refusal (SC) Damage (LC) DOA / DAP (TA)Factory's Error (LA1) Late or Early Delivery Order Entry Error(EB2) PO Expired (EA1)Shipping Error Slow sales Stolen In Transit SVC Parts problem(TC)VOC (TD)

Reason for return TotalPercentag

eCS Return (TB) 507 11.67%Customer Refusal (SC) 220 5.06%Damage (LC) 33 0.76%DOA / DAP (TA) 3060 70.44%Factory's Error (LA1) 6 0.14%Late or Early Delivery 3 0.07%Order Entry Error(EB2) 138 3.18%PO Expired (EA1) 20 0.46%Shipping Error 1 0.02%Slow sales 6 0.14%Stolen In Transit 1 0.02%



SVC Parts problem(TC) 121 2.79%VOC (TD) 228 5.25%Grand Total 4344

0.23% 3.45% 4.51%

17.03%

11.83%

0.05%12.71%

0.14%

12.20%

9.09%0.05%

13.67%

13.28%

1.75%

Percentage

Agra Chandigarh Dehradun Delhi Ghaziabad Hme JaipurJalandhar Jamalpur Jammu Jodhpur Lucknow Ludhiana Parwanoo

Location Reason Total

Agra

Damage (LC) 4Order Entry Error(EB2) 1PO Expired (EA1) 5

Agra Total 10

Chandigarh

CS Return (TB) 24Damage (LC) 1DOA / DAP (TA) 106Factory's Error (LA1) 1SVC Parts problem(TC) 6VOC (TD) 12

Chandigarh Total 150Dehradun CS Return (TB) 13

Customer Refusal (SC) 2DOA / DAP (TA) 171SVC Parts problem(TC)

4



VOC (TD) 6Dehradun Total 196

Delhi

CS Return (TB) 105Customer Refusal (SC) 14Damage (LC) 10DOA / DAP (TA) 524Order Entry Error(EB2) 11PO Expired (EA1) 9Slow sales 1SVC Parts problem(TC) 27VOC (TD) 39

Delhi Total 740

Ghaziabad

CS Return (TB) 93Customer Refusal (SC) 16Damage (LC) 4DOA / DAP (TA) 331Factory's Error (LA1) 1Order Entry Error(EB2) 3SVC Parts problem(TC) 19VOC (TD) 47

Ghaziabad Total 514Hme Damage (LC) 2Hme Total 2

Jaipur

CS Return (TB) 49Customer Refusal (SC) 6DOA / DAP (TA) 444Order Entry Error(EB2) 1Stolen In Transit 1SVC Parts problem(TC) 15VOC (TD) 36

Jaipur Total 552

Jalandhar

Customer Refusal (SC) 1Factory's Error (LA1) 1Order Entry Error(EB2) 2PO Expired (EA1) 2

Jalandhar Total 6

JamalpurCS Return (TB) 80DOA / DAP (TA) 295Late or Early Delivery 3



Order Entry Error(EB2) 105Shipping Error 1Slow sales 5SVC Parts problem(TC) 15VOC (TD) 26

Jamalpur Total 530

Jammu

CS Return (TB) 11Customer Refusal (SC) 165Damage (LC) 9DOA / DAP (TA) 191Factory's Error (LA1) 3SVC Parts problem(TC) 4VOC (TD) 12

Jammu Total 395Jodhpur Customer Refusal (SC) 2

Jodhpur Total 2

Lucknow

CS Return (TB) 60Customer Refusal (SC) 10Damage (LC) 2DOA / DAP (TA) 471Order Entry Error(EB2) 7PO Expired (EA1) 4SVC Parts problem(TC) 22VOC (TD) 18

Lucknow Total 594

Ludhiana

CS Return (TB) 68Customer Refusal (SC) 3DOA / DAP (TA) 459Order Entry Error(EB2) 8SVC Parts problem(TC) 8VOC (TD) 31

Ludhiana Total 577

Parwanoo

CS Return (TB) 4Customer Refusal (SC) 1Damage (LC) 1DOA / DAP (TA) 68SVC Parts problem(TC) 1VOC (TD) 1



Parwanoo Total 76Grand Total 4344

Location TotalPercentage

Agra 10 0.23%

Chandigarh 150 3.45%

Dehradun 196 4.51%

Delhi 740 17.03%

Ghaziabad 514 11.83%

Hme 2 0.05%

Jaipur 552 12.71%

Jalandhar 6 0.14%

Jamalpur 530 12.20%

Jammu 395 9.09%

Jodhpur 2 0.05%

Lucknow 594 13.67%

Ludhiana 577 13.28%

Parwanoo 76 1.75%Grand Total 4344

.



8-RESULTS DISCUSSIONS AND CONCLUSION:

In this chapter, the authors will present the conclusion about the whole thesis and summarize

the implications of the research.

There are basically 2 types of inventories in GZD DC warehouse: Sellable and non-sellable

inventories. Sellable inventories include normal sellable products, B2B sellable, MR, B

category sellable, Demo sellable, HME sellable, and Regional Retail (for upcountry). Non-


Results Discussionand Conclusion

In this Chapter we will be discussing the outcomes of our Data Analysis. The author will present the conclusion about the whole thesis and summarize the implications of the research.


sellable inventories include Demo X, Promotional items (ZPOPs), and D categories products

(Return products). These categories of products are grouped into 5 main divisions: HHP,

AV/HA, IT, HME, and ZPOP.

Through our simple comparative analysis of 2012 & 2013 sales report we came to the

conclusion that HHP Division is having the highest contribution to sales 70% (2013), which

was also confirmed by the ABC analysis. Therefore, close monitoring and priority should be

given to this division in terms of inventory management and control followed by AV/HA

division with 27% contribution to sales in 2013. IT division contributes only 3 % (2013),

which means that the demand of IT products is very less as compared to HHP & AV/HA

divisions. The reasons of the drop in the demand of IT products can be explained by the

variability in the consumption of IT products. We came to this conclusion after the XYZ

analysis which pointed out IT division with 111.84% coefficient of variability. The

coefficient of variability of AV/HA division is quite steady; therefore the variability in its

demand is very low 87.62%. The variability in HHP demand is moderate with 90.08% as

compare to IT. Thus, IT division represent a real source of concern after all this analysis.

Managers should review the sales policies of IT division considered as the DOGS category of

product in the warehouse (BCG Matrix). Also our demand forecast with three periods moving

average is quite accurate since the forecasting error is coming very less -17. Through this

demand forecast we came to know that future demands will be less fluctuating as shown on

the graph (4).

Also talking about order cycle management, we came to realize that Hansol being a 3PL

company neither does not manufacture any products nor buy from any supplier. Therefore the

company does not incur any ordering costs. But since they are into the distribution of the

products of its FMCG partners, the order cycle management is limited to the sales order

processing management for its vendors, dealers and distributors…

When an order is received from a dealer, the lead time is being fixed based on the order

planning and processing time, as well as the order execution and transit time. Therefore, if the

RDD cannot be respected due to time constraint, the order is being sent back to sales team for

further correction before setting the LT. In fact, the LT is not constant, it varies from order to

order and it is being calculated based on customer requirements and order processing and



transit time. This report is trying to connect theories with a real case and propose managerial

solutions that the 3PL, GZD D.C, can implement to improve its inventory management.

With the increasing focus of business expansion into the global market, companies need to

have an extremely lean, efficient supply chain to achieve successful integration into new

markets. 3PL providers can help provide services to these companies, but also assist the more

localized companies looking to cut operational costs or focus on core competencies. There

are many advantages to outsourcing logistics services to third parties. The amount of services

being offered by these logistics providers continues to grow each year. Today, 3PL’s are

more than just transportation providers; they are becoming involved in the long-term strategic

direction of their client companies.




Recommendations and Implementation

After analyzing the whole data, we would like to give some managerial suggestions and useful recommendations. Furthermore, we will state how these recommendations will be implemented, what steps should be taken by the company to implementation the suggested recommendations, in what timeline and by whom.


9. Recommendations & Implementations:

Our recommendations are grouped in two sets, long term base recommendations and short

term based recommendations. Short term based are those recommendations that need to be

implemented in the near future while as long term based recommendation should be

implemented in the long term due to huge investment cost and manpower training before they

start getting accustomed to the new system.

When the author visited Ghaziabad warehouse, we encounter some problems related to

the use of racks as shown in figure below. In such a well-known 3PL organization like

Hansol Logistics, the use of racks should be common to insure the safety of products

while stacking inventories in the warehouse. Surprisingly the author came to realize

that Ghaziabad D.C is not making use of these racks and shelves in the warehouse.

Also there is no item location guide. Some items’ number was simply shown on the label.

1- Therefore we owe these recommendations to the Operations Department and the

warehouse supervisor. They should make use of racks as shown on the figure below,

and proper item location guide in the warehouse for the short term.



Current status (GZB) To be (Example)

General Categories (Types) of Rack Systems to be used in the warehouse:

Selective pallet rack

Double-deep selective pallet rack

Drive-in racks

Drive-through racks

Push back racks

Gravity flow pallet rack.

The most common small product and non-pallet load arrangements include:

Dynamic small product storage/picking systems

Bin shelving systems

Gravity flow racks (carton flow racks).

As mentioned earlier, warehouse supervisor must focus on load characteristics and lift

equipment when selecting a functional racking system. Additionally, pallet racks require

more square meters per pallet than bulk storage areas; however, racks allow access to a

specific pallet or individual pallets (loads).

Also daily stock count method is not always accurate; it is often tiring and time

consuming mainly when the inbound flow starts increasing considerably in the

warehouse.

2- Therefore a formalized and standardized inventory control system should be

established to solve the problem even though the scale system (ILS) makes the bin

management easier and efficient. Also we suggest the use of Bin cards and Inventory

control cards. (Short term based recommendation)

Bin cards:

A bin card is an individual stock keeping record that contains information about a single

product, by lot or batch number (see figure below). The card should note the stock on hand



for that lot only, as well as any losses and adjustments for that lot. Bins cards should usually

be displayed on or at the bins where the lot is located.

BIN CARD

Commodity lot / Batch No Product name & description

Unit: Minimum stock level:

Maximum stock level:

Date Transaction

Reference

Received

from /

Issued to

Qty

Received

Qty

Issued

Losses Adjustment

s

Qty

on

hand

Initials

Inventory control card:

An inventory control card is an individual stock keeping record that holds information about

all the lots of a single category of product. Inventory control card should be kept for each

category of product. The inventory control card can summarize many bin cards for a

particular product. For example, one inventory control card could hold information about all

the mobile phones (Galaxy Note3) in a store facility. It should note the total stock on hand of

Galaxy Note 3 in the warehouse, as well as the record of losses and adjustments, without

regard to lot number or where the product is located in the warehouse. To avoid mismatch

and ensure that each lot is managed correctly, in larger warehouse such as GZD D.C, which

may have many lots of each product stored in different places, it is usually advisable to

maintain both inventory control cards and bin cards. See figure below for an example of

inventory control card.

INVENTORY CONTROL CARD

Product Name:

Unit: Product code:

Date Transaction Received Quantity Quantity Losses Adjustments Qty On Initials



Referencefrom /

Issued toReceived Issued hand

Another issue related to sufficient space availability in the warehouse was raised in the problems discussion.

3- Making use of racks and stacking shelves can also solve that issue because materials can safely be stacked above each other and thereby free more space in the bin area without the risk of them falling out. (Short term based recommendations)

Another source of concern is the increase in the number of transit damage.

These damages of goods can be of various reasons such as: -

Damage due to shipping in heavy rain

Improper unloading / in transit damage

Factory Issue Bay Box damage

Trade return due doubt in bay box, etc…

The highest number of these is due to in transit damage, and the most number of Transit damage occurs in products like fridge which averages around 20.

4- Therefore, to reduce the occurrence of material handling damages, loading damages and transit damages, we suggest:

The proper use of forklifts while loading,

Use frequently containerized vehicles (container body vehicles of all size – 20 / 24 / 32 / 40 feet.): Advantages of container body is No loading of good with other material enroute, No damages to goods, Reduces Insurance cost and transit cost.

Use Refrigerated vehicles of all size and capacity at all temperature mainly for health and medical equipments. All containers having data logger which gives report of temperature inside container. This recommendation is advice for the short term basis.

Also Bin accuracy is important and all material movement is done based on bin

information and physical stock arranged in bins. If there is any mismatch in the bin it

will affect overall warehouse efficiency. But, during the interview of the warehouse

supervisor, he raised some issues related to the bins management. The bin numbers are



sometimes invisible due to continuous increase in inbound inventory level in the

warehouse.

5- We suggest the Warehouse supervisor to periodically reorganize the material in the

warehouse based on the movement of each model to make space to receive incoming

material to avoid any vehicle detention. This should be done periodically and each

time the shipment is coming to the warehouse. (Short term recommendation).

Also during the analysis we came to realize that the inventory turn of IT products are very less.

Demand of IT products were very less as compare to HHP and AV/HA. So to avoid huge

inventory holding costs of these types of products, it is recommended that:

6- The sales and marketing team of the warehouse pays closer attention to the growth

pattern of inventory usage and incorporate it in sales forecasting technique. Also,

materials management unit should also pay attention to sales growth over the years

and thus take into consideration, the apparent relevance of sales and transportation

cost in making decision with regards to inventory.

Another critical issue the warehouse has to deal with is the problem of continuous cleaning

of the warehouse floor due to on-going activities throughout the day. The month end is very

critical in the warehouse because more vehicles are coming to the warehouse, and therefore

the inbound flow increases considerably and the warehouse becomes full in such a way that

even the a manual cleaning cannot be done on regular basis.

7- Therefore, we recommend to the warehouse supervisor to use a Laser Grinder XPT ® for

flatter floor in the warehouse, and Cleanfix for warehouse floor cleaning, a cutting edge

technology used by most of the well-known 3PLs managing warehouses such as Damco USA,

UPS, etc... The Cleanfix and the Laser Grinder® XPT are suitable for operation in a live

warehouse environment, offering little or no disruption to ongoing warehouse activities (See

pictures below.)



Figure3: Cleanfix Figure4: Laser Grinder XPT ®

NB: Due to high investment cost for implementing this recommendation we suggest its implementation for the long run basis.

8- Material Picking Activities Improvement:

Warehouse operations that still use hard copy pick tickets as Hansol does find that it is not

very efficient and prone to human errors. To combat this and to maximize efficiency, we

suggest the warehouse supervisor the use of the most advanced systems the “pick-to-light

and voice recognition technology” in the warehouse for material picking.

In a pick-to-light system, an operator will scan a bar-coded label attached to a box. A digital

display located in front of the pick bin will inform the operator of the item and quantity that

they need to pick. Companies are typically using pick-to-light systems for their top 5 to 20%

selling products. By introducing this system companies can gain significant efficiencies as it

is totally paperless and eliminates the errors caused by pick tickets.

Voice picking systems inform the operator of pick instructions through a headset. The pick

instructions are sent via RF from the company’s ERP or order management software. The

system allows operators to perform pick operations without looking at a computer screen or

to deal with paper pick tickets. Many world class warehouse operations have adopted voice

picking to complement the pick-to-light systems in place for their fast moving products.

This is indeed costly for the company, but once it is adopted it can improve efficiency in the

warehouse, increase picking speed and reduce cost. This recommendation is to be

implemented in the long term basis. (See the pictures below)



Figure: Pick-by –voice tech

Benefits of Pick to Light:

Paperless, hands-free, easy operation. Pickers simply look for pick lights that are lit up.

Pickers no longer need to carry around paper pick lists and both hands are free to use for

picking.

Simple to learn and use. Minimal training time is required. Operators prefer using Pick to

Light over paper pick lists based on ease of use and speed with which pickers can complete

the work.

Accuracy. Improvements to (over 99%) compared to paper based picking, reducing errors in

picking and increasing order accuracy. Better order accuracy leads to better customer service.

Productivity. Increase efficiency and picking rates (up to 450 lines per person hour).

Individual operator productivity can be increased up to 4 or 5 times over traditional, paper-

based picking solutions.

Reduce operating expenses. Fewer labor hours required to pick the same order volume using

lights.

Easy to install. Easily mounts to virtually any type of shelving or rack. Cableless pick to light

device installation dramatically reduces install times and complexity. Works for a wide range

of locations, whether it’s 50, 500 or 5,000 lights in the system.

9- Consider labor management tools to optimize performance.

In Addition to the SAP and Scale systems, Labor management software can help the

warehouse gain control of costs associated to it and enable you to visualize, understand, and

take command of the labor situation as it really is, not as you think it is. This could be very

useful in GZB warehouse during Packing, Picking, loading and unloading time in the


http://www.cisco-eagle.com/material-handling-systems/wms-systems/labor-management-software


warehouse. Implementing this recommendation could help the warehouse reduce damages

such as material handling damages, loading and unloading damages, as well as any kind of

risk associated to stock count such losses and steals. Handling labor resources correctly can

be the difference between an adequate operation and a good one…or a good one vs. a great

one.

10- Train relentlessly, over and over to break bad habits and instill good ones.

Employees need more training than the basics of how to run any machinery in their area,

where things are, and their direct reports. How do you expect things to get done? What way

does your company conduct business? What processes do you expect them to use? Whatever

you teach employees needs to be taught – again and again – to your veterans. This allows

you to update skills for everyone and make sure your processes are always top-of-mind.

Better yet, document that training and keep a file on it. Employees who are trained in safety

operations are less likely to have accidents, and documentation proves that you did the

training in case there is an incident.



Process Flow Chart: SOP Inbound operations management



Process Flow Chart: SOP Outbound operations management



Process Flow Chart: SOP Returns management





Process Flow Chart: Storage & Inventory Management



Appendix B: Reference and BibliographyKrajewski, Ritzman, Malhotra and Srivastava, (2010). Inventory management Techniques,

Operations & Supply Chain Management, 28 (1), 422-436

Arend, R. J. and Wisner, J. D. (2005). 3PL and supply chain management: is

there a fit? Journal of Business Venturing, 20(3), 403-436.

Bassin, W. M. (1990). A Technique for Applying EOQ Models to Retail Cycle Stock Inventories.

Journal of Supply Chain Management, 28(1), 48-55.

Baudin, M. (2004). Lean Logistics. New York: Productivity Press.

Blackstone, J. H., Jr., & Cox, J. F. (1985). Inventory Management Techniques. Journal of

Supply Chain Management, 4(1), 27-33.

Bloomberg, D., LeMay, S., & Hanna, J. (2002). Logistics. Upper Saddle River: Prentice Hall.

Buxey, G. (2006). Reconstructing inventory management theory. International Journal of Operations

& Production Management, 26(9), 996-1012.

Carter, S., & Evans, D. (2006). Enterprise and Small Business-Principles, Practice and Policy.

Harlow:

FT Prentice Hall.

Chapman, S., Ettkin, L. P., & Helms, M. M. (2000). Do Small Businesses Need Supply

Chain Management? IIE Solutions, 32(8), 31-35.

Chopra, S., & Meindl, P. (2001). Supply Chain Management: Strategy, Planning, and Operation.

Englewood Cliffs: Prentice-Hall.

Christopher, M. (1998). Logistics and Supply Chain Management. London: Pitman.

Coyle, J. J., Bardi, E. J., & Langley, C. J. Jr. (2003). The Management of Business Logistic: A Supply

Chain Perspective (7th ed.). Mason: South-Western.

Davenport, T. H. (2000). Mission Critical: Realizing the Promise of Enterprise Systems. Boston:

Harvard Business School Press.

ENSR (1997). The European Observatory for SMEs-Fifth Annual Report, European Network for

SME Research, Zoetermeer: EIM Business Research and Consultancy.

ENSR (2004). Highlights for the 2003 Observatory. European Commission, Brussels.

European Logistics Association/A.T. Kearney (2004). Differentiation for Performance.

Deutscher Verkehrs-Verlag GmbH, Hamburg.

European Union (2005). ‘SME Definition’,

http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/index_en.htm

Davis, C. H., Raafat, F., & Safizadeh, M. H. (1983). Production and Inventory Information

Frazelle, E. H. (2002). Supply Chain Strategy: The Logistics of Supply Chain Management. New

York: McGraw-Hill.



Appendix C: Learning from the studyThe learning from this study during the 2 months spent in Hansol Logistics India was

tremendous. As the project topic was challenging and also exciting, the learning was much

more focused on the warehousing. During this study I have understood that warehousing is

nothing more than the management of space and time. The space management portion,

storage, has a cost per month, because there is a monthly cost for warehouse space. The time

management component includes labor involved in handling materials as they move in and

out of the warehouse. During the study I have understood how the company deals with these

two critical factors, in order to meet customer requirements. As my project topic was limited

to Ghaziabad D.C warehouse only, I have gone through the whole Standard Operating

Process of the warehouse, starting from inbound operations to outbound operations and KPI

management. Inbound operations include inbound vehicles management and space planning

for inbound stock, resource planning, vehicles reporting per unloading plan, unloading

segregation and inspection, quality control inspection and segregation of goods, location

management, put away management, goods stacking, and goods receipt in system etc… Also,

in case of damages, products are inspected by service team. Outbound operations start with

the order execution and planning which includes order administration, vehicles management,

goods picking and packing, validation and loading, then follow the documentation and the

shipping. The most critical part in this process is the Lead Time management because

sometimes the RDD does not match with actual LT, due to some gaps between the order

processing time and the RDD. In case this kind of issues is faced by warehouse, the order is

being sent back to Sales Team for necessary correction before the order is being executed as

per the actual LT. The LT for each customer is being calculated separately keeping in mind

the order planning and processing time as well as the loading and transit time. In inventory

management I noticed that daily stock count and cycle stock count were the methods applied

in warehouse. Inventory management includes packing stock management, repairable

inventory management, non repairable stock management, category stock management and

sample goods management, promotional items management and value added services. Goods

are being staked in the warehouse as FIFO rule or any specific priority. Inventory

reconciliation is done every day by doing physical inventory control and doing so in scale

system. At the end of the day, the accuracy should be checked by comparing the stock in ILS

and SAP in case of any gaps or mismatch, the checking and cross checking is being done to



identify the gap for necessary correction. In reverse logistics I learned that returns are

grouped into two different categories: Commercial returns and Technical returns. Within

Commercial we have Samples/demo and Damage return. Sample /Demos consist of those

goods which are given to dealers for the purpose of demonstration of that product.

Damage Return are those goods returned by dealer due to Transit Damage which include

damages like outer damage of the box, scratch or dent due to handling, accidental damages.

Technical Returns are those returns where those goods are received which have technical

issues; these goods are inspected by service team, Based on that inspection technical team

makes First Technical Report /T.R. 1 which is then put into S.A.P. where these reports are

analyzed in S.A.P. and the results comes in the form of Another technical Report/T.R.2 with

the help of this report good is placed either in B (second Sales) category or D (disposable)

Category.

These returns are kept in warehouse in three different categories B, C and D

B (Second Sale)

C (Insurance Claims)

D (disposable)

Second Sales: - It consists of those goods which are repaired goods. If it is outer box damage

then it is replaced there itself within the ware house.

If the damages are related to technical fault then it is sent to Samsung’s repair centre where

after being repaired it is sent back to distribution centre where these goods are kept under B

category for second sales.

Insurance claim: - The goods that are damaged due to accident are kept under C Category

where it is inspected by insurance company and the claim is approved where in this damaged

good goes in category B or Category C depending upon whether the good is resalable or

disposable.

Disposable: - The goods that come under D category of returns are those goods that go to the

scrap dealer once they are dismantled. The process of dismantling involves putting dent on

the outer body of that good and hammering of all working part to ensure that no component is

in working condition.



Apart from the study, on the job training was provided by HR department in Excel and

operations and supply chain management during which I learned new concepts such Bullwhip

Effect, Third Party Logistics Suppliers, and Linear Programming on Transportation problems

which I think it was very insightful for my specialization in Operations and Supply Chain

Management.


Documents

bharat 024 report