LOGISTICS

WAREHOUSING
&
SUPPLY CHAIN MANAGEMENT

A PRESENTATION
BY
G.AHOOJA 17.04.2010
 India China Japan USA Euro Restw
SHARE
1 AD 33
OF
27
WORLD’S
1 0
GDP
14 25
1500 25 25 3 0 21 26
1820 15 33 3 2 27 20
1870 12 17 2 9 38 22
1913 8 8 4 21 39 20
1950 4 5 3 28 31 29
1973 3 5 8 23 29 32
2001 4 7 8 23 21 37
2008 6 13 7 21 19 31
 Major Mfg.Centres
• US, JAPAN,CHINA,GERMANY,RUSSIA,
KOREA, INDIA & ………….
• Major Materials reqd.-Coal, Petro prods., Iron
Ore, Alumina, Other Minerals, Wood, Pulp, Agri
Products
• How- Sea, Rail, Road, Air, Inland waterways,
Kucha Roads, On horse back, On Human back
• Package- Loose, Open, Container, Carton,
Pipeline, Sack, Potli & even stomach or rectum
 TYPES
• INBOUND
• OUTBOUND
• 1PL(Shipper/ consignee), 2PL(Actual
Carrier),3PL(outsourcing to a spcialized
logistics co.) & 4PL(Consulting firm
specialized in logistics)
• REVERSE LOGISTICS
• INTEGRATED LOGISTICS
 MAJOR LOGISTICS COs.
• DHL, BLUE DART, GATI, DTDC,
SAFEXPRESS, TCI for parcels
• CONCOR, GLOBAL DISTRI-PARKS,
AEGIS, ALL-CARGO GLOBAL for Multi-
Modal
• In-house Cos. e.g., Future Logistics,
Ashok Leyland Logistics, Essar Logistics
& last but not the least SAIL
Def. Oxford Dict.: Organization of Supplies
& Services etc. for any complex operation

• is the process of planning,

implementing & controlling
procedures for the efficient & effective
transportation & storage of goods (&
services) and related information from
the point of origin to the point of
consumption for the purpose of
conforming to customer requirements.
• FUNCTIONS OF A Logistics Manager:
• Basically Back-End Operations
• To organize transportation, warehousing,
inventory control and ensure that systems
& structures are in place to monitor the
flow of goods & services
• To ensure customer (I/E) satisfaction.
• To optimise resource utilization &
contribute to healthy bottomline
 FUNCTIONS OF A Logistics Manager

• TO handle processes involved in a supply chain

• TO Co-ordinate with suppliers of raw materials,
manufacturers, wholesalers, retailers, consumers,
contractors, vendors, service providers.
• TO coordinate and control order cycle
• TO ensure documentation, recording in line with
statutory requirements
• TO follow Rules & Regulations in respect of
establishment, shop act, labour laws, exports,
imports, hazardous substances etc.
 FUNCTIONS OF A Logistics Manager

• TO forecast demand, stock levels, monitor delivery

times, transport costs and evaluate performance
• TO accept return of goods.
• TO establish, monitor information systems
• TO allocate and manage staff resources in a
dynamic situation
• TO analyse data to monitor performance and plan
improvements
 FUNCTIONS OF A Logistics Manager

• TO liaise and negotiate with customers and

suppliers
• TO develop business by gaining new contracts,
analyse logistical problems and produce new
solutions
• TO implement health and safety issues
• To manage staff training issues
 Logistics in SAIL
• Steel Plants at Bokaro(Jharkhand) Bhilai (Chhatisgarh),,
Rourkela(Orissa), Durgapur & Burnpur (WB), Salem
(TN), Bhadrawati (Karnataka), Chandrapur(Maharashtra)
• Mines- Linkage with > 100, Avg.dist.>600KM
• 130 lakh Tons of Steel
• 400 lakh Tons of Raw Materials, Imports of 100 lakh
Tons, Exports of 7 lakh Tons to 114 countries
• 104 Stockyards & Consignment Agents
• 6037 Dealers in almost all distts.
• Largest end-to-end Logistics player
 Logistic Model
• HUB & SPOKE
• Major Plants, Mines, Quarries, Washeries,
Export Yards, Import Yards, Mother Yards,
• Other Warehouses & CAs
• Direct Distribution Customers
• Multi-Modal Transport- Mainly Rail & Road
• Essar Steel: Road, Ship,
• Tata Steel: Rail, Road
 Hub & Spoke

Dealer
Plantt

Plant-II Smaller WH

Major WH

Plant-1 Project Customer

WH1 Customer WH2

Direct Customer
 Role of Warehouse Manager &
Systems
• Net Connectivity VSAT, ISDN, Leased Line,
Fixed Line Broadband, Wireless Broadband
• SAILNET- Intranet & accessibility through
internet
• CMOITES Online Real Time monitoring
• Server at Hyd & back-up at Chennai
• Manuals for Operations-WH,HC,CA,RTM
• SOPs, LMR, Contracts, DOPs
• Registration of Vendors for Tptn.at Regions &
LTEs, JOs, Processing of Bills locally at WHs
 ACTIVITIES
• Responsibilities vary according to the specific job role in
Departmental WH or in a CA
• A range of business tasks is undertaken to support the
smooth and efficient operation of supply chain
processes and typical work activities usually include
monitoring the plant-wise despatches, Rly’s FOIS,
quality, quantity, Wagon details, Unloading, stacking,
marking, delivery, DOs issued, JOs issues, inventory
status, issue of CCIs/ TCs, movement and storage of
goods incl.returned materials, filing Excise Returns,
TTAT, SPF,contracts, DO closure, monitoring debits,
maintenance of equipments, re-packaging & bill
forwarding, re-checks incl.at night
 Changing Role of Warehousing in
SCM
• Status of Warehousing in India
• How the Role of Warehousing is changing
in India
• Location
• Capacity
• Physical Infrastructure
• Processes & IT
• Overall Approach
 Historical Status of Warehousing in India

• Location- Store house, Lack of Scientific

analysis of where WH to be located
• Approach Roads usually bad
• Inadequate investment in technology,
infrastructure & personnel
• Quality of Civil infra is poor, bad floors, damage
to materials
• No Racking
• Manual Labour-Lack of throughput infra, loading
bays, parking spaces
 Historical Status of Warehousing in India

• Inadequate Capacity-Rule of thumb/ as per infra-

Lack of Scientific decision-making- Overstorage
normal
• Inefficient Layout- Poor space utilization, higher
effort required for same throughput
• People, Processes & IT- Lack of focus on WH
processes; Lack of trained manpower; Lack of
WMS, Bar coding etc.
• WH is considered as a very transactional/
operational role
 How the Role of WH is changing
• Role of WH is changing from a ‘space to store
goods at cheapest cost’ to being a part of Co.’s
overall strategy for customer fulfillment
• Location: Minimising costs while maintaining
desired service levels
• Capacity: in line with demand & supply variability
& replenishment frequency
• Correct location of capacity
• Delayed differentiation/ VAS
 How the Role of WH is changing
• Infra in line with product quality requirements,
throughput requirements & space availability
constraints
• Focus on processes & IT
• Network Optimisation –No back freighting
• Capacity as per demand & supply variability-
Structured decision making for capacity near
demand/ supply locations
• Civil, Racking, MHE (Reach truck, articulating fork-
lift, VNA racking, Drive-in racking, 12M high, EOT
cranes, RTG (Mijack) cranes
 How the Role of WH is changing
• Processes & IT
• Manual----- Excel----ERP----WMS
Bar coding+ RFID+ERP
• Ensures higher efficiency
• Std.& efficient processes
• Helps manage high complexity, multiple
WHs, multiple SKUs, FIFO
• Improve manpower/ eqpt. productivity,
data capabilities
 Adding Value to WH
• From invoicing centre to quality centers of
excellence-Cadbury chocolates
• Strategic Imperative to support high growth,
rapid changes in customer, competitor &
regulatory environment, manage consistent
stock levels & stock freshness all along multi tier
distribution & at min inventory & cost
• WH needs to play role in revenue enhancement
thru service excellence
 About Future Group

• Future group was conceived as a

force to drive domestic consumption
and capture every addressable
consumption expenditure
• Driven by creativity and innovation,
Future Group is among the youngest
business groups in India
• Adopted a two pronged ‘Dominance’
and ‘Leadership’ strategy.
• Lead in Thought, Design, Brand,
People Management, Empowering &
Nurturing Entrepreneurship
• Achieve ’Dominance’ by capturing
minds, market share, geographical
expanse, supply chain design and
fuelling purchasing power
• A multi-format and largest retail
network present in 72 cities and 66
rural locations and dominates over 12
million square feet at present
About Future Group
CONSUMPTION = DEVELOPMENT
(Ideas for India)
 Supply Chain purpose
1. To maintain continuity
of supply to support
scheduled production
and other production
needs
2. To do so with the
minimum of investment
for economic and safe
operation
 Supply Chain purpose

3. To maintain the right quality of purchased

materials based on pre determined standards,
technical specifications and suitability.
4. To supply at the lowest possible cost consistent
with quality and service requirements.
5. To minimize costs – both in inbound and
outbound logistics.
Supply Chain Purpose

6. To maintain the
company’s competitive
position in the market by
meeting service and other
associated costs
objectives.
7. To create goodwill for the
company through good
buyer-supplier relation.
 Warehouse Functionality
• Economic Benefits
• Consolidation
• Break Bulk and Cross Dock
• Processing/Postponement
• Stockpiling
• Assortment
 Warehouse Functionality
• Service benefits
• Spot stock
• Mixing
• Production support
• Market Presence
• SKU, Pallet & Kitting
• Tags, RFID-Active or Passive
 Types of Warehouse

• Private warehouse
• Public warehouse
• Contract warehouse
 Warehouse planning
• Site selection
• Product Mix
• Expansion
• Layout
• Transport linkages
• Volume
• Nature of product
 RATIONALE FOR MODERN
WAREHOUSING & SCM
• Co.s can be excellent in either
manufacturing, technology, marketing or
efficient operations
• It is the least expensive to achieve
efficiency in logistics mgt.
• Bottomlines are more imp.than top lines
• For Indian Cos. 7% gap in cost of logistics
from world scale is very large to bridge &
improve cost competitiveness
 DHL :

• This company is one among the major logistics

companies in India. It is a market leader globally
in overland transport,air freight and international
express. The company ranks No.1 in the world
in contract logistics and ocean freight. The
biggest logistics and express network in the
world has a network in about 220 territories and
countries,72,000 vehicles,350 Aircrafts,36 hubs
and 4,700 bases.
 Blue Dart :

• This logistics company is South Asia's top

integrated express package Distribution and
courier company. The domestic network of the
company covers about 21,340 locations and
provides service to 220 countries by the
company's sales alliance with DHL. It provides
the best service like Free Pick up from Your
location,Regulatory Clearances,Real Time
Tracking,Free Computerized Proof of Delivery
etc.
 Gati
• The company is a key leader in then arena of
express cargo delivery and a significant one in
the supply chain management solutions and
distribution in India since the year 1989.The
company provides services like the
WareHousing,Express Cargo etc. Logistics
Solutions of the company are
Warehousing,Supply chain Management. The
Distribution Solutions of the company are Gati
Surface Express, Gati coast to coast, Gati Air
Express etc.
 Safexpress :

• It is one of the largest express company in

India. The company offers the best and
integrated logistics solutions. In 2002 the
Limca Book of Records declared the
company as the Largest Logistics service
Provider in India. The company has a
network over 550 locations in 28 states
and 7 countries. It has 3000 weather proof
ISO-9002 vehicles.
 DTDC :

• The biggest Domestic Delivery Network

Company is DTDC. The company offers
high class delivery service in about 3700
Indian locations and 240 international
places. The company dispatch about 10
million parcels in a month.It also offers low
cost for bigger parcels to
US,UK,India,Nepal,Dubai and other
places across the world.
 Agarwal Packers and Movers:

• This popular Indian logistics company

provides logistic services like the home
shifting,car packing etc. across India. The
company believes in keeping technology
and people and of course heart and soul
in the movement of the individuals
respective items. The company offers
quality service in transportation and
packing