15990360 Project on Safexpress Warehousing AND Supply Chain Management PDF

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A PROJECT REPORT ON WAREHOUSING & DISTRIBUTION IN SUPPY CHAIN MANAGEMENT

SUBMITTED TO: UNIVERSITY OF PUNE SUBMITTED BY: RAKESH GAUR PGDMLM (2008-2009)

SINHGAD INSTITUTE OF BUSINESS ADMINISTRAION AND COMPUTER APPLICATION

ACKNOWLEDGEMENT Thanking is formality and sometimes a necessity, nevertheless an essential part of any project report. The list of expression of thanks no matter how extrusive is always incomplete and inadequate. This acknowledgement is no exception.

One of the best parts of writing a project report is the opportunity to thank those who have contributed to it. This project report has been made possible through direct and indirect Co-operation of various people. I specially with to acknowledge the following people who reviewed the project. Thank for the most perspective and helpful comments.

I sincerely thank to Prof. R.R.Jaware for his support and valuable guidance in reviewing the project form time. I also express my gratitude to Prof. H.D.Thorat for his precious help during the entire course.

RAKESH GAUR

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PERFACE Winter training is an integral part of our academic curriculum. During the training, a student gets an opportunity to understand the practical aspect of theory. Training makes the concept clearer. This project report is the outcome of the training that I have undergone at SAFXPRESS PVT. LTD. for the partial fulfillment of Post graduate Diploma in Foreign Trade. The topic allotted to me by the company WAREHOUSING & DISTRIBUTION IN SPPLY CHAIN MANAGEMENT. The project emphasizes on the warehousing and distribution in supply chain management done by the company. I have tried to my best to make a good report.However; no one can claim perfection in its entiretity.So I apologize for the discrepancy, if any, crept in. Preparation of project requires perseverance, initiatives, proper guidance and direction. So it is mandatory to take the aid of various departments.

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TABELS OF CONTENTS:S.NO.

CONTENTS

Pg.no.

1.

Introduction

05

1.1

Company Profile

06

1.2

Type of Business

14

1.3

Safexpress Services

15

1.4

Future Expansion

18

1.5

Company’s Turnover & Achievements

20

2.

Supply Chain Management

23

2.1

Meaning

24

2.2

Supply Chain Management by Robert B. Handfield

26

2.3

Components of Supply Chain Management

28

2.4

System of Supply Chain Management

29

3

Case Study: Dabbawalas of Mumbai

32

4

Warehousing

38

5

FQAs

45

6

Conclusion

52

7

Bibliography

54

CHAPTER-1 4

INTRODUCTION Company Profile Types of Business Safexpress Services Future Expansion Company’s Turnover & Achievements

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Company Profile Safexpress –India’s Leading Logistics Company is renowned for its domain expertise and experienced manpower in the LSCM sector. Safexpress can best understand your Logistics and distribution requirements and can offer the most suitable Logistics model and solution to you. Safexpress has the largest network coverage across India traversing over 3,50,000 km. every day covering over 550 locations through more than 750 routes operating 24 hours a day 365 days a year reaching these locations through it’s fleet of 3000 vehicles operating on. All Safexpress vehicles have all-weather proof containers for safe transit. Safexpress also operates through Air to locations directly covered by flights and to all other locations on a multi modal basis.

Safexpress have a Integrated Logistics Management. It is our 3PL Product that optimises your company’s supply chain. First, we examine the linkages between your suppliers, producers, buyers, intermediaries and end users in order to identify time and cost inefficiencies. Next, we deploy our unique mix of local know-how, global practices and cutting-edge technology to provide integrated supply chain solutions. These range from specific services such as warehouse management, statutory compliance and invoicing - to an entire gamut of third party logistics services.

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Safexpress works and carries on the philosophy of 'Custodians First Carriers Later’. We sincerely abide by our corporate philosophy on the subject. Safexpress has an all risks cover - Carrier’s Risk offer, which unburdens the customer of his worries of losses in transit. On minimal extra charge of Risk Charges, we cover your valuable shipment against all sorts of transit losses including fire, flood, damage, accident, shortage, etc.

The Latest of the material handling equipment are used at Safexpress' hubs to ensure safety and remove Laxity from material handling. Equipment including hydraulic hand pallet trucks, dock levelers, trolleys, fork lifts’ multilevel pallet stackers are used by Safexpress. Chain Pulleys and Cranes handle consignments which are not possible by smaller equipments to manoeuvre. It might not be out of place to mention here all the hubs of Safexpress are on platform level height. Any Logistician will understand and appreciate the essentiality and importance platform level warehouses have for material handling.

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Pawan Jain Chairman and Managing Director Safexpress

Anil Sayal General Manager Safexpress

Safexpress started its business as a door-to-door service in 1995 with 4 routes, 9 offices, 12 container mounted vehicles and 20 employees. Safexpress' door-to-door services include niche products like DoD and To-Pay freight.

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After one year i.e in 1996 Safexpress opens super hubs at Delhi, Mumbai and Bangalore. Next year Safexpress launches Integrated Logistics Services. Our first ILS client is NIIT, the first international ILS account is signed with Hilti from Europe. Spurred on by a surging domestic economy, Safexpress extends its fleet to 250 and number of stations to 290. Safexpress Private Limited emerges as an independent entity Then in 1998 Safeair and Safebox are launched, setting a new standard in value added cargo services.All hubs are connected through web-based software. In 1999 Having grown by over 300%in 4 years without compromising quality, Safexpress is awarded the Golden Peacock Award for quality and innovation in Logistics Management.

In 2000 Pilot run for GPS starts on 28 routes. Also Safexpress reaches the 350destinations mark and the fleet crosses 1400. Again 2001 Safexpress upgrades and launches a whole lot of features on www.safexpress.com including ePod, Virtual Cargo and Privileged Member.

In the year 2002,2003 Safexpress was declared India's "Largest Logistics Service Provider" by Limca Book of Records. In 2005 Safexpress bags the MICO:Power of We Award for excellent service in logistics. In the same year Safexpress fleet crosses 3000 mark. Next year in 2006 Safexpress was awarded by ADC Krone for providing best logistics services and in same year Safexpress bags prestigious RAI's (Retailers Association of India) Award for Best Logistics Service Provider.

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HISTORY 1995

Safexpress launches as a door-to-door service with 4 routes, 9 offices, 12 container mounted vehicles and 20 employees. Safexpress' door-to-door services include niche products like DoD and

To-Pay freight. 1996

Safexpress opens super hubs at Delhi, Mumbai and Bangalore.

1997

Safexpress launches Integrated Logistics Services. Our first ILS client is

NIIT, the first international ILS account is signed with Hilti from Europe. Spurred on by a surging domestic economy, Safexpress extends its Fleet to 250 and number of stations to 290. Safexpress Private Limited emerges as an independent entity. 1998

Safeair and Safebox are launched, setting a new standard in value

added cargo services. All hubs are connected through web-based software.

1999

Having grown by over 300% in 4 years without compromising quality,

Safexpress is awarded the Golden Peacock Award for quality and innovation in Logistics Management.

2000

Pilot run for GPS starts on 28 routes. Safexpress reaches the 350-destinations mark and the fleet crosses 1400.

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2001

Safexpress upgrades and launches a whole lot of features on www.safexpress.com including ePod, Virtual Cargo and Privileged Member.

2002

Safexpress declared India’s “Largest Logistics Service Provider” By Limca Book of Records 2002.

2003

Safexpress declared India’s “Larges Logistics Service Provider” by Limca Book of Records 2003. Mr. Pawan Jain , CMD , Safexpress , becomes one of the finalists in the prestigious EnY’s Entrepreneur of the year Award.

2004

Safexpress inaugurated its 500th scheduled delivery location Safexpress bags the Franchise Awards04 for excellence in Team Work.

2005

Safexpress bags the MICO:Power of We Award for excellent service in logistics Safexpress fleet crosses 3000 mark.

2006

Safexpress awarded by ADC Krone for providing best logistics Services. Safexpress bags prestigious RAI’s ( Retailers Association of India ) Award for Best Logistics Service Provider.

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MISSION We shall adopt and internalise a work culture which demonstrates a "we can we will" attitude to reflect in our daily responsibilities so as to far exceed our objectives, consistently striving towards market dominance. We will create historical landmarks forming a strong edifice for the future overcoming all obstacles pro-actively as our personal responsibility and commitment to create delight for the customer with impeccable personalised services.

VISION To be a conscious learning organisation maintaining flexibility for change so as to provide the most customised solutions. Striving towards global market share whilst maintaining dominance in the domestic market through good hr practice and excellent customer service.

QUALITY “A quality service relies upon constant customer interaction and feedback. An immediate response to the changing environment with pre-defined business processes managed effectively and efficientlylead to the highest output from the lowest input and this is the strongest measure of quality. The best certification of a quality organisation is the measurement of the scale of the smile on the customers face”

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STRENGTHS  Over 550 destinations, spread across 28 states & 7 union territories.  Warehousing space exceeding 3 million square feet.  Over 3,000 all weather-proof ISO 9002 vehicles.  More than 1000 routes, linked through 41 super hubs & hubs.  Delivering more than 3 million packages a month.  Traversing more than 5,00,000 kms a day.

 Operating 24 hours a day, 365 days a year.

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TYPE OF BUSINESS

Indian Economic Scenario today marks the emergence of total chaotic market with lot of competitors, piling stock of products, lowering margins, taxation changes and more. In the present situation what is needed to see the blue? The ‘way to higher profits’ comes from streamlining the channels and outsourcing the segment of business which is not the core focus or expertise of the company. One such fragment of business model is Supply Chain. Being a medium of linking product to market, a robust model of supply chain management ensures a better ‘TAT’ (turn around time), low inventory holding cost and less of damages. Over the time discipline of business logistics has advanced from the warehouse and transportation dock to the boardroom of leading Global Enterprises. Supply Chain has to be viewed not only as material and information pipeline but as integration of logistics with the human factors that need more attention to be paid to understanding, creating and managing demand more effectively. Safexpress works on the Value Chain concept using a framework for examining linkages between suppliers, producers, buyers, intermediaries and end users. Safexpress, India’s leading logistics company offers Integrated Logistics Management, Express, Air, Multi-modal, Door-to-Door, time definite delivery and consultancy services. The company also offers e-logistics and customized solutions for e-business.

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SAFEXPRESS SERVICES

 EXPRESS Safexpress service is an express service which involves movement of cargo in all weather proof sealed containers on feeder and express routes. The service is time definite with a published transit schedule covering more than 550 destinations nation wide and provides the flexibility for surface, air and multi-modal connectivity with a wide reach associated with Indian airlines and air taxi operators such as jet airways, Sahara etc.

 DRAFT-ON-DELIVERY Draft on delivery is an unparalleled value-added service wherein the seller can dispatch goods through Safexpress to the buyer and be assured that the delivery would take place only when the draft has been collected. In the Safexpress DOD system pre-alerts are sent to the consignee to allow reasonable time for the draft to be made, thus meeting the desired objective of express transit with the amount ready for collection.

 ALL RISK COVER The management of Safexpress hereby undertakes and declares that: “The company would redeem the value of the loss in the uneventful case of any shortage or damage to the consignment whilst in the custody of Safexpress, subject to the risk charge having been paid by the sender or the recipient as per the company policy. The amount corresponding to the loss as declared would be paid by the company to the sender or the receipent as required without waiting for any request for the same.”

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 SAFEBOX The safebox comes in two convenient sizes of 17” x 17” x 12” and 16” x 12” x 9” easily accomodating upto 20 & 10 kgs respectively of your cargo. The robust design is further reinforced with internal insulation for safety of your cargo. So you save on packaging cost and for a nominal amount it is ready for delivery with an auto insurance upto rs. 5000 absolutely free of cost.

 SAFEAIR To ensure that time sensitive cargo reaches the destination through a faster mode meeting all your requirements for the time definite deliveries. Safeair connects your cargo through airlines, atos and uses the services for morning and evening flights to provide a wide variety of connectivety to suit different market cutoffs.

 ILM Safexpress works on the value chain concept using a framework for examining linkages between suppliers, producers, buyers, intermediaries & end users. Safexpress ensures the success of the entire chain, marrying local knowhow with the best global practices, technology & perspective

 CONSULTING Safexpress offers value added services beyond physical operations in the form of logistics consultancy covering a wide spectrum of the Indian economy. The company plays a pivotal role in guiding diverse market segments on existing and recommended logistics models with various simulation modules to map transactions using historical data and providing befitting supply chain solutions.

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HOW FAST IT WORKS

Cargo from PATNA to BANGALORE booked on Saturday, September 06, 2008 will travel a distance of 2280 kms./ 1425 miles check posts through which your cargo will pass

documents required 2 Copies of Consignor's Invoice with ST & CST No. Printed permits / forms required VAT FORM-505/VAT FORM-515 octroi applicability NO entry tax applicability YES subject to nature of transaction

your virtual cargo would be delivered on

by Express mode Thursday, September 11, 2008 by Safeair mode Monday, September 08, 2008

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FUTURE EXPANSION Logistics services provider Safexpress plans to invest Rs 800-1,000 crore (Rs 8-10 billion) in five years to expand its operations on the back of the boom in manufacturing and retail activities in the country. As a result of the expansion, the company's turnover is likely to touch Rs 1,000 crore (Rs 10 billion) by 2010. The company expects to fund its expansion through internal accruals and debt as it claims to have strong bottomline and cash reserves. The privately-held Safexpress has been growing at 35 per cent and posted a turnover of Rs 450 crore (Rs 4.5 billion) in 2006-07. The company expects similar growth this year as well, Pawan Jain, chairman and managing director, told reporters at the CII Logistics 2007 summit in Chennai. Safexpress intends to set up logistics parks comprising warehouses, vendor management services, raw material management and finished products storages at 32 locations across the country. Each park will come up on an area of 25-30 acres. A group company, which is into the realty business, has already completed around 70 per cent of the land acquisition. The company is also establishing a 3 lakh sq ft logistics park near Chennai at an investment of Rs 35 crore (Rs 350 million). It already operates a 80,000 sq ft warehouse in Chennai. Through the expansion programme, the warehousing capacity of the company will grow to 10 million sq ft in the next three years from the current 3 million sq ft. The company was planning to strengthen its presence in the air cargo segment by taking three Boeing-737 cargo aircraft on lease. These would cover five cities in the country by the next financial year, according to Jain. Safexpress has also placed an order for 380 trucks to add to its current fleet of 3,000 vehicles. The company doesn't own the vehicles, but hires them through its network of 59 vendors.

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HEALTHCARE SEGMENT is one of Safexpress's special focus area which contributes 16 percent of the revenue. With more than than 100 percent customer retention rate Safexpress has always given due importance to the demands of their customers. Aiming at expansion, they are investing heavily in infrastructure development and will soon be coming up with 32 logistics parks and will be adding seven million square feet of warehousing capacity. The investment is planned for a total of Rs 1000 crore in infrastructural development in the next three years. Pawan Jain, Chairman and Managing Director, Safexpress, says, "We have plans for expanding our specialised logistics product range. This range would be specifically designed for the healthcare industry after thoroughly analysing its needs. Apart from offering our multi-modal services, we will be providing single window solutions and, along with managing the logistics channel end-to-end from distribution channels to pharmacy or patient level. We would be offering specialised logistics solutions to the rural healthcare, customised pharma and cold warehouses pan-India, packaging solutions, implementing bar-coding to prevent spurious drugs and offering solutions as per regulatory norms like GDP, US FDA, MHRA and GCCDP."

With a view to provide customised logistics services for booming retail industry Safexpress also sponsored the ninth Marketing and Retail Conclave. The conference saw the presence of leading retail players from all across the world. Vineet Kanujia, General Manager Marketing, Safexpress said, "The idea behind sponsoring this conclave was to bring the retail and logistics industries closer. Safexpress has been at the helm in harnessing and synergising the needs of the retail industry for the growth of the economy. We have successfully managed t...