Application of value stream mapping in the Procurement Department

of Artistic Milliners (Pvt.) Ltd.

By
Mohammad Umar Tamimi 22466
Maaz Tariq 18559
Muhammad Abdullah Awan 22468
Farrukh Ansari 22825
Muhammad Daniyal Sattar 22018
Abdul Moiz Shakeel 22348

Transportation Techniques and Management

Sir Sajid Nazir

Department of Supply Chain Management

College of Business Management
Institute of Business Management (IoBM)
Karachi
23rd March, 2021
Introduction

Mass Logistics was formed in 2007 by MR. Samim Akhtar Ansari. The company started very
small with a fleet of 5 trailers which were used in transportation of cement from Attock cement
factory to port Qasim. Mass Logistics rapidly grew its fleet by purchasing 30 bulkers from China,
the loan against the bulkers was of 180 million PKR which was paid off in 10 years. The
company also added trailers, dumpers and dump trucks to its fleet and today has a fleet of
more than 100 vehicles.

Mass Logistics specialises in the movement of cement and coal from factory to port and vice
versa.

In the past, Mass Logistics have worked as transportation vendors for Lucky cement, Power
cement and Attock cement. Presently, Mass Logistics handles all transport operations of DG
KHAN Cement factory alone. They also have a work shop at Super highway Karachi, where the
following operations are handled:

1) Vehicle maintenance
2) Vehicle dispatch
3) Vehicle tracking
4) Inventory Management
5) Procurement
Departments are in place for these operations, The IT department looks over the tracking of
vehicles and is responsible for diesel consumption reports which are created daily and over
looked by Workshop manager. This department is operational 24/7. The finance department
handles driver salaries, mechanics, engineers and other workers as well as petty cash for drivers
and all other workshop expenses. The inventory store has a separate staff which is focused on
ensuring appropriate and sufficient inventory is in stock and in place physically as well as in the
software. The top management of workshop oversees all operations and reports to the head
office.

Vision, Mission & Values:

“To be the pioneer in the transportation niche of Cement & Coal”

“To provide fast and reliable logistics solutions to customers”

- To prioritise customer needs and success.

- To ensure employee satisfaction and happiness.
- To maintain integrity within and outside the company.

OPERATIONS:
Currently Mass Logistics is transporting Coal, Clinker, bagged cement and Loose Cement from
factory to port and other sites. The major contract of MassLogistics is with DG KHAN CEMENT
where the company handles their entire logistics needs. They also provide transport assistance
to Power cement, Attock cement and Lucky cement.

Core operations include loading of bagged cement at the factory and unloading at the port of
drop off site.

Clinker is usually exported so its loaded from factory and unloaded at the port.

For loose cement, the company uses Bulkers which are loaded through Silos present at the
factory and then again unloaded into the other Silo present at drop off sites.

To fulfil orders, Mass Logistics also outsources trucks from the market and pays them the rent
decided by both parties.

Role of Logistics and Transportation in a Company

Logistics is one of the most important segment of any industry, it involves the flow of goods and
services from the initial origin to their final destination. Logistics cannot work in isolation and
thus needs coordination with the other entire various functional departments in a company
such as: Sales, Customer service, Production etc. (Pradha).

The role of Logistics is encompassed by a variety of activities such as Transportation, storage,

Packaging, Distribution, information processing and so much more. In other words it can be said
that the role of logistics starts with the movement of materials (goods, information) into an
organization as well as the materials movement that takes place within an organization as well
as all the material that is moved out of the organization. This is where the importance of
logistics becomes much more apparent as improving upon logistics will directly lower cost and
cut the time it takes to get the final goods to consumers. Most supply Chains in this day and
time are extremely complex and thus have growing needs that needs to be catered to and this
stretches to creating value through an organizations Logistical prowess, Getting the customer
the right quantity and quality as well as to ensure availability of an organizations products in
the market to limit the amount of time it takes for consumers to look for a good and makes
your product much more available to an increasing group of individuals which in turn creates
value for a business to capitalize on.

With the consistent growth of global trade and addition of more partners in a supply chain it
has become more important to focus on the logistics of dealing with these various actors found
in the supply chain, the point is to reduce costs directly through better partnerships with these
actors with the end goal of improving consumer experience and the success of all the links of a
supply chain through greater efficiency.

Transportation is a part of logistics and it solely relates to the physical movement of materials
between the various links in a supply chain. Transportation can be said to be the most
important part of logistics and is said to account for about 1/3 rd or 2/3rd of the total logistical
costs of a firm (Tseng, 2005). It is said to be perform a connective role between the various
processes that come together for the conversion of resources into final products for the end
consumer. Thus when talking about transportation we refer to the planning of all these various
functions and –sub functions associated with the movement of good to minimize the costs
without compromising on efficiency and quality of service for the final end consumer. Aside
from the movement aspect of transportation, it can be said that the success of most firms
depend on the correct use of transportation and transportation modes that suit their needs.
Transportation in itself greatly effects the amount of satisfaction customers get, what this
means is that having the correct transport setup allows for goods to be moved in a safe and
efficient manner which translates to goods reaching the customers of a business in the right
amount, at the right time and in the right condition ensuring that their demands are met whilst
also minimizing costs for a business in terms of waste and breakage during the movement of
the respective goods, this also effects a firms competitiveness in the market by establishing
itself as a reliable supplier cementing their position.
The various stake holders or link between which transportation occurs include the Shipper (who
send the materials), carriers (move the goods), transportation Policy Makers (Government),
Operators and receivers. The importance of Transportation lies particularly in how businesses
can turn orders from potential losses to a more profitable state, it allows a business to quite
lower rates and or be negotiated into lower rates without having to sacrifice a large portion of
its profit margins, Furthermore a study into the modes of transportation used by a company to
move its goods can reveal possible inefficiencies and thus becomes ground for improvement in
terms using a different method, combining a number of different transport modes, taking
different routes etc. all with the final goal of making a business be better than what its current
position is.

Logistics and Transportation of Our Company

LOGISTICS
The process of procuring resources and raw materials, storing them, processing them into the
finished goods and transporting those finished goods to their final destination is called as
Logistics.

ACTIVITIES OF LOGISTICS:
The basic logistics activities that are being performed generally are following:

 Order processing.
 Materials handling.
 Warehousing.
 Inventory control.
 Operations.
 Transportation.

Basically, logistics activities include inbound and outbound transportation management,

storing and warehousing, fleet management, order-fulfillment, handling of materials, order-
fulfillment, inventory control, logistics network design, supply and demand planning
management of third-party logistics service providers.

TRANSPORTATION

Transportation refers to the movement of goods, animals or cattle, and human from one
location to another or from point A to point B.

MODES OF TRANSPORTATION

Following are the five modes of transportation that are being used most
commonly:

 Railways
 Roadways
 Airways
 Seaways
 Pipeline

LOGISTICS AND TRANSPORTATION ACTIVITIES

MASS LOGISTICS

Mass Logistics is basically in the business of transporting several goods like Coal, Clinker,
bagged cement and Loose Cement from one location to another. Each good requires
customized storing capacity and transporting techniques. DG Khan Cement is one of the major
clients of Mass logistics and they handle their logistical requirements.

As far as bagged cement is concerned the company’s core operation include loading at the
factory and unloading at the port or drop off site.

Clinker is mostly exported so it is loaded from factory and unloaded at the port.
When we talk about loose cement transportation the company uses Bulkers which are loaded
through Silos present at the factory and then again unloaded into the other Silo present at drop
off sites. In order to fulfill the order requirements, Mass Logistics also outsources trucks from
the market and pays them the rent decided by both parties.

LOOSE CEMENT AND CLINKER (From Factory to Port)

The major operations of loose cement and clinker are from factory to port where ships
averaging in between 35-50 thousand tons are to be loaded in a short window of time in order
to avoid demurrage. Vehicle types specific to operations are Bulkers. Mass Logistics owns 34
bulkers which can carry 70 tons of loose cement and unload directly into the vessel with the
help of their built-in compressors. Trailers: Mass Logistics owns 30 trailers which carry Clinker,
to complete factory requirements. Mass Logistics also outsources the transportation jobs in the
market to small fleet owners for faster service.

COAL (From Port to Warehouse)

In case of Coal, the vessels arriving in Karachi are mostly averaging between 50-60 thousand
tons and need to be unloaded within a few days to avoid port charges. Mass Logistics offers
warehousing services only a few kilometers away from port which allows them to unload the
vessel in a timely manner. Vehicle types specific to operations are Dumpers. Mass Logistics
owns 20 dumpers which the company uses in the warehouse operations along with more than
300 dumpers in the local market that join in on the operations.

COAL (From Warehouse to Factory)

The factory collects coal to run their machines as per their requirement and Mass Logistics
transports the required amount from warehouse to factory using dumpers and trailers.

COAL (Factory to Site)

This transportation usually contains either bag cement or loose cement going to construction
sites or Chinese projects and Dams.

Modes of transportation

Mass logistics uses transportation by road only. The company started out with a small fleet of
trailers, which has now expanded to many trailers, dumpers and bulkers.

Mass logistics provide road transportation all over Pakistan. They have there warehouses near
the port in Karachi where they unload and store the raw materials/goods like coal, loose
cement or cement bags, clinkers etc. The warehouses are near the port in order for them to be
transported easily and avoid extra charges. From the warehouses, the raw materials are then
loaded onto trailers, bunkers or dumpers and transported to their demanded location.

Mass logistics owns approximately 80 vehicles themselves in order to transport their raw
materials (coal, clinkers, cement etc). It also outsources some of it’s transportation activity.
Mass logistics currently do not use any other mode of transport except for transportation by
roads.
Conclusions

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