AUTO CARS- LOGISTIC DIVISION OF VIDEOCON INDUSTRY LTD.
A SUMMER INTERNSHIP PROJECT REPORT ON WAREHOUSE MANAGEMENT PRACTICES
Submitted to: Xcellon Institute
Academic Guide: Prof. Vivek Raina Corporate Guide: Mr. Mahesh Shukla (SHO)
Submitted by: Bhaumik Shiroya (M00139) 02/08/2013
CERTIFICATE
This is to certify that Mr. Bhaumik G Shiroya student of PGPGBM at Xcellon institute. Summer Training Programme has successfully completed for a period of 9th weeks with Auto cars logistics care of Videocon industry from May 27th, 2013 To July 27th, 2013. As per our measurements and reporting structure he is hard working and has been excellent during the training programme.
I wish him all the success for his future.
Signature
Mr. Mahesh Shukla
State Head Operation
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ACKNOWLEDGEMENT
Teacher is a guide. Who shows the right way and gives the support to achieve the one’s goal in terms of gaining knowledge and learning from both the sides, which stops going in the wrong direction. I am thankful to Prof. Daisy Kurien, my Academic Mentor; Prof. Vivek Raina, my Corporate Guide; Mr. Mahesh Shukla (State Head Operations, Auto Cars) for their guidance and continuous support for this report and SIP. I am great full to them for their precious time which was given me to make this report.
I am also thankful to my classmate Vidhi Pitroda for his support during knowledge sharing as part of task given by our Corporate Guide. I am also thanking to all the staff members of Auto cars Warehouse of Gandhinagar who have supported me to learn the software’s like SAP & ACWMS for different clients of Auto Cars and also the warehouse management work; without them I could not learn all of these.
I am also thanking to, Ahmadabad’s staff members for their support to learn the production process, import documentations and the process sales department/commercial.
I would also thankful to almighty god for his grace and mercy to successfully complete this project.
Bhaumik Shiroya
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PREFACE
In two year master degree program of MBA with PGPGBM of theirs provision for doing summer training, after 2nd semester. Summer Internship is a part of academics under the PGPGBM. An application of the theoretical and experiential knowledge which we have been learned in the first year is essential as an experiential learning to get the exposure of ground reality of the market. Hence, due to the requirement of PGPGBM this report has been drafted with the support of Auto Cars; where I had got an opportunity to work as a Management Trainee to get the experience of working for a corporate company. Therefore, we could relate the theory with the reality.
This was an opportunity for me to relate the theoretical knowledge with the practical applications by working as a Management Trainee under Auto Cars. I have learned the software’s such as SAP, ACWMS, and Documentation for warehouse, floor management etc… This Summer Internship Project was to understand the corporate environment and to learn the work which warehouse consist of. This report contains Industry overview, project details and conclusion.
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EXECUTIVE SUMMARY
This SIP had been conducted at Auto Cars – Logistic Division of Videocon Industries Ltd.; warehouse in Gandhinagar. The objective of this SIP was to understand the supply chain management by comparing the class room learning with the actual work learning and observations. This report consisting of Industry overview, Firm Overview, Project details, Experiential Learning and limitation.
Chapter one Industry overview has been include the brief on Logistics Industry in India has been valued 90 US$ 90 billion and employing around 45 million people. Logistic costs are 13% of GDP. There are around 13000 companies in India out of which 730 are leading companies where as in Ahmedabad there are 29 companies of logistic providers. Porter’s Five Forces Model for the industry to understand it easily and primary growth drivers of this industry as well as key trends in the industry, challenges faced and brief on 3PL services which are representing 2% of the Logistic costs.
Chapter two In firm overview it has been brief about the status of the company; they are doing 50% of their business through their own vehicles and for rest they take the support of 4PL to fulfil the requirement of their clients as they do have only around 1050 their own vehicles hence, they are unable to do whole through their vehicles. Their mission is to provide top-notch services, warehousing and supply chain optimization solutions and understanding the customer’s requirements & their vision is to satisfy their customers as well as to become biggest white goods logistic provider in the logistic industry. They do have existence in 50 cities across India. Their area of expertise is end-to-end logistic services across India.
Chapter three and four SIP Details and major tasks include the objective of this project in brief as well as for the major task have been conducted. Task details includes the tasks allotted, performed and results achieved out of that. Main result which has been achieved understands of the supply chain management, warehouse management activities and operations\ between different departments as well as experiential learning. Major tasks also include the detailed about those particular tasks.
Chapter fifth Logistics Management refers to the services and operations which are being done to make the product reach at door step ahead from the customer’s home. This has been als o includes decisions related to Logistics& distribution Logistics.
Chapter sixth, seventh, eighth and ninth is in detailed about warehouse and related operations. Warehouse Management Process consists of the major three processes; Inward process, storage and outward process. Warehouse Management has been brief about Floor Management, Loading & Unloading the vehicles, and Material Handling, stock Keeping Unit, Stock Count, Housekeeping, Labour Management, and Record Room, Warehouse Management Systems and Warehouse Control Systems, Scope of Warehouse Management and Logistics Automation. Five ‘S’ of Warehouse Management i.e. Sort, Sift, Shine, Standardise, Sustain and Extra phases with 5S.
Chapter tenth, eleventh and twelfth is about Facilities & Monsoon Security for Warehouse Management consists of the primary inspections of that and has compiled the data. Through Warehouse Layout it can be seen that the structure of the warehouse that how much they are organised. Warehouse Performance Analysis for 2012-’13 for the purpose of giving justification of getting monetary need by showing the proof of actually expenses has been occurred this much and for the betterment of the next year’s improvement. Then it has been followed by the Learning, conclusion and Limitations. Appendix includes the documents which have been used in the warehouse management process at Auto Cars.
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TABLE OF CONTENT
? ? Industry overview ........................................................................................................9 Company overview......................................................................................................22
1. Auto cars- care of Videocon logistic profile.................................................................23 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. Mission.............................................................................................................23 Vision...............................................................................................................23 Guiding principal..............................................................................................23 Supply chain optimization………………………………………………………............24 Strength and weakness of the auto cars a care of Videocon logistics...............24 Reliable warehousing........................................................................................24 Hierarchy of Auto cars a care of Videocon logistics.........................................25 I. II. 1.8. 1.9. 1.10. ? Gandhinagar hierarchy.................................................................................25 Gandhinagar hierarchy of P.E. and mobile division.....................................26
Hierarchy pyramid.............................................................................................27 Warehouse hierarchy.........................................................................................28 Corporate hierarchy...........................................................................................29
Project detail:...............................................................................................................30
2. Logistics......................................................................................................................31 2.1. 2.2. Meaning............................................................................................................31 Process.............................................................................................................32
3. Warehouse management..............................................................................................34 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Meaning............................................................................................................34 Scope................................................................................................................34 Stock count.......................................................................................................35 Labour management..........................................................................................35 Quality control...................................................................................................36 Security.............................................................................................................37
4. Types of warehouse.....................................................................................................38 4.1. 4.2. 4.3. 4.4. 4.5. Private warehouse.............................................................................................38 Public warehouse..............................................................................................38 Contract warehouse...........................................................................................38 Government warehouse.....................................................................................38 Bonded warehouse............................................................................................38
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4.6.
Co-operative warehouse...................................................................................39
5. Material management..................................................................................................41 5.1. 5.2. 5.3. 5.4. 5.5. Material master.................................................................................................41 Inventory management.....................................................................................42 Material handling..............................................................................................42 Inventory info system.......................................................................................42 Physical inventory............................................................................................42
6. Five “S” of Warehouse Management...........................................................................43 6.1. 6.2. 6.3. 6.4. 6.5. Sort..................................................................................................................43 Sift....................................................................................................................43 Shine................................................................................................................43 Standardise......................................................................................................44 Sustain.............................................................................................................44
7. Logistics software.......................................................................................................46 7.1. 7.2. SAP (System Application & Products)...............................................................46 ACWMS (Auto cars Warehouse Management System).......................................49
8. Documentary process..................................................................................................50 9. Record keeping...........................................................................................................54 10. Channel management..................................................................................................55 10.1. 10.2. 10.3. 10.4. 10.5. Receiving..........................................................................................................55 Put away...........................................................................................................55 Taking care of goods........................................................................................55 Order picking and Storage equipment..............................................................56 Transportation..................................................................................................56
11. Time management.......................................................................................................58 12. Sales and distribution.................................................................................................59 13. Transport management...............................................................................................60 14. Floor management......................................................................................................61 15. Storage location..........................................................................................................62 16. Warehousing Design...................................................................................................63 17. Budget analysis...........................................................................................................64 17.1. 17.2. Gandhinagar branch.........................................................................................64 Surat branch.....................................................................................................67
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18. Task.............................................................................................................................70 18.1. 18.2. 18.3. 18.4. 18.5. 18.6. 18.7. 18.8. 18.9. 1st week.............................................................................................................70 2nd week............................................................................................................70 3rd week.............................................................................................................70 4th week.............................................................................................................71 5th week.............................................................................................................71 6th week.............................................................................................................72 7th week.............................................................................................................72 8th week.............................................................................................................72 9th week.............................................................................................................72
19. Learning and experience..............................................................................................73 20. Result achieved............................................................................................................74 21. Warehouse layout……………………………………………………………………………………75 22. Flow chart……………………………………………………………………………………………..76 23. Conclusion...................................................................................................................77 24. Annexure......................................................................................................................79 25. Endnote………………………………………………………………………………………………...80 26. Bibliography.................................................................................................................81
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? INDUSTRY OVERVIEW:
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I. Industry snapshot:
The Indian Logistics Industry is estimated at US$ 125 billion in 2010Generated employment for 45 million people. The industry is expected to grow annually at the rate of 15- 20 per cent, reaching revenues of approximately $ 385bn by 2015. Highly Unorganized with organized sector responsible only for 6% market share of organised logistics players is also expected to double to approximately 12 per cent by 2015. The size of the 3PL industry is estimated to be~US$1.5 bn in FY11 (1% of logistics cost).
The share of 3PL services is expected to increase from 6% in FY06 to 13% in FY11, at a CAGR of 25%
Logistics costs are 10-20% of GDP Indian Infrastructure is rated 54th among the 59 countries -Road: 56/59, Rail: 25/59, Seaport: 51/59, Airport: 40/59.
Several factors helped the growth of logistics industry in India over the decade that includes changing tax system, rapid growth in industries such as automobile, pharmaceuticals, FMCG and retail. However, major sectors that are investing huge amounts in logistics industry are aviation, metal & mining and consumer durables. With increasing competition and cost, focus on outsourcing, entry of foreign players is having positive impact on the industry. Three major contributors for the growth of the logistic industry are: emergence of organized retail, increase in foreign trade and India becoming soon the manufacturing hub.
As per the World Bank’s Logistics Performance Index 2010, India is placed at 47th position out of 155 countries. Logistics costs in India are estimated to be approximately 13% of GDP which is considerably high when compared to the corresponding figures for other major economies of the world (as per World Bank 2010 report). For example in 2011 the logistics costs in the European Countries accounted for 7.15% of GDP (as per an article in ‘The Hindu’)
Higher logistics costs are mainly due to poor infrastructure facilities in the country. The higher logistics cost represents higher products/services cost in the international market. The country’s organized logistics market represents 6% of the total market .
The three major contributors for the growth of logistics industry are: emergence of organized retail, increase in foreign trade and India becoming a global manufacturing hub.
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II. Logistics performance index: ( source world bank 2010)
Score Overall LPI Customs Infrastructure International shipments Logistics competence Tracking & tracing Timeliness 3.12 2.70 2.91 3.13 3.16 3.14 3.61 Rank 47 52 47 46 40 52 56
(0.1.
Logistics performance index)
To improve infrastructure facilities and in turn the logistics industry government implemented several projects such as golden quadrilateral project, east-west and north-south corridors (connecting four major metros), Free Trade and Warehousing Zones (FTWZ) and private participation in the sector.
The logistics cost in India – which includes inventory holding, transportation, warehousing, packaging, losses and related administration costs – is estimated at approximately 13 per cent of GDP and is high when compared to the corresponding figures for major economies. India's multilayered tax regime, infrastructure bottlenecks and other inefficiencies have been the primary reasons in keeping logistics costs high in India.
70% of the total domestic product is transported through the road network and 15% through the rail network.
? Elements of Logistics cost
? ? ? ? ? Transportation 35% Inventories 25% Losses 14% Packaging 11% Handling and Warehousing 9%
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III. Share of logistics cost in total sale for various industries:
Name of industry Cement Steel F&B FMCG Durables Apparel Auto Percentage share of logistic cost in total sales 15% 6% 5% 4% 4% 3% 3%
(0.2.
Logistics costs)
IV. Industry trends:
Transportation: Container cargo represents only about 30% (by value) of India's external trade-much lower when compared with the global containerized cargo average of 70-75%. At a growth rate of 12%, India's container cargo traffic is estimated to reach 15 million TEUs by FY16E from about 7.5 million TEUs now (at 12 major ports). In comparison, China has created capacity at its ports to handle more than 100 million TEUs a year. Out of the 15 mn TEUs of total container traffic, we estimate Exim rail container traffic to be 5 mn TEUs by FY16E. This would be a huge opportunity and will significantly benefit container rail operators.
Rising investment in the rail and port spaces also fuels growth in allied industries like wagon manufacturing, port handling equipment, railway electrification systems and construction companies.
To reduce the transportation cost and for quicker movement of cargo Multimodal transport operation is introduced (MTO). MTO helps exporters with less documentation for instance single document for all modes of transport.
V. Indicative break-up of freight handled in the country
Mm tonnes Rail freight Road freight Sea freight Air freight FY06 667 1353 424 1.4 FY07 728 1478 464 1.55 FY08 794 1612 519 1.71 FY09 850 1726 530 1.7 FY10 910 1875 561 1.9 FY11 1025 2046 570 2.1
(0.3. Indicative break up freight)
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VI. 3PL (3rd party logistic):
Outsourcing is everywhere. Logistics industry is no exception. Logistics services like transportation, warehousing, cross docking, Inventory management, packaging and freight forwarding all are part of third party logistic services. Companies in India currently outsource an estimated of 52% of logistics. And 3PL industry is estimated to be US$ 1.5bn in FY11. 3PL represents only 1% of logistics cost emphasis its significance in the industry. Future is no doubt lying in outsourcing. As the growth in the 3PL market is expected to be in the range of 25-30% CAGR over FY11-13E. As of now, the 3PL activity is limited to only few industries like automotive, IT hardware, and telecom and infrastructure equipment.
The organised 3PL market in India can be categorised into three major segments – public sector, private sector and foreign entrants. Some of the major players in each category are: TVS logistics, DIESL (TATA), Panalpina, TCI, Gati, Allcargo, V Trans, Total, VRL and Reliance etc.
VII. Private participation:
The industry is becoming more competent with the entry of global giants like Gazeley Broekmen (Wal-Mart's logistics partner), CH Robinson and Kerry logistics and large Indian corporate houses like Tata, Reliance and Bharti group. A series of mergers and acquisition like DHL acquired Blue Dart, TNT acquired Speed age Express Cargo Service and FedEx bought over Pafex, are also leading to consolidation industry at various levels and segments. Many of these companies are planning to broaden their areas of operation and are also planning to develop their own logistic parks across the country. If the trend continues as per the estimates, the market share of the organized logistics players is expected to double from 6% in 2007 to approx. 12% by 2015.
VIII. Express logistics:
Organised players have monopoly over the express logistics industry. 65% of express business is in the hands of organized players, while semi-organised and unorganised players accounts for 25% and the remaining 10% of the market by EMS Speed Post. But altogether different picture can be witnessed in the domestic segment. In domestic front, unorganised players hold 41% of the market share based on price advantage. While organised players accounts for 45% and EMS Speed Post the remaining 14%. Key players in express cargo are: DHL, FedEx, TNT, UPS, AFL, DTDC, First Flight Couriers, TCI Express, Gati and VRL etc.
IX. Warehouse logistics:
Recently, warehouses have become key growth drivers in the logistics industry. Apart from conventional storing services, warehouses now providing value-added services like consolidation and breaking up of cargo, packaging, labelling, bar coding and reverse logistics etc. warehousing and related activities account for approx. 20% of the total logistics industry.
Most of the warehousing space in India lies with unorganised players in domestic front, which is causing wide supply and demand gap in storage space. According to KPMG, an additional 120million square feet of warehousing space is needed by 2012 to bridge this gap.
Currently, the organised warehousing industry in India has a capacity of approx. 80million metric tonnes and is growing at 35 to 40 per cent per annum. An investment of approximately US$ 500million is being planned by various logistics companies for the development of about 45million
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square feet of warehouse space by 2012.Many players in this segment such as Multi Modal Logistics Park, Mega Food Parks and Free Trade Warehousing Zones have planned next generation storage models.
X. Logistic parks:
About 110 logistics parks spread over approximately 3,500 acres at an estimated cost of $1 bn are expected to be operational and an estimated 45 mn ft2 of warehousing space with an investment of $ 500 mn is expected to be developed by various logistics companies by 2012.
Majority of these logistics parks are planned in close proximity to state capitals. However, availability of large land parcels at relatively low cost, connectivity to multiple markets across states and industrial clusters has led to the emergence of some tier-2 and tier-3 cities as favoured destinations for the development of logistics parks and warehouses.
XI. Market player:
Company Concor Gateway Distriparks Allcargo Global TCI GATI Shreyas logistics Blue dart Yes Container rail Yes Yes CFS Yes Yes Yes Yes Yes Yes yes yes Yes Yes Yes Yes Yes Yes Yes Yes Trucking Warehousing MTO Express Third party
(0.4.
Market player)
XII. List of private players with pan India license:
? ? ? ? ? ? Adani logistics Arshiya international Boxtrans logistics India Central warehousing corporation Concor Container rail road services
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? ? ? ? ? ? ? ? ?
Delhi Assam roadways Emirates trading agency Gateway rail freight Hind terminals India infrastructure & leasing Innovative B2B logistics solutions Pipavav Railway Corporation Reliance infrastructure engineering Sical logistics
XIII. FDI regulation:
? ? ? ? ? ? In general 100% FDI under the automatic route is permitted for all logistic services. FDI up to 100% subject to FIPB approval is permitted for courier services. FDI up to 49% under the automatic route is permitted for air transport services, including air cargo services. 100% FDI is permitted in Ports and Harbours under automatic route. 100% FDI is permitted under the automatic route for storage and warehousing including warehousing of agricultural products with cold storage. 100% FDI is permitted in transport and transport support services through automatic route
XIV. Logistics process:
“Logistics is the process of strategically managing the acquisition, movement and storage of materials, parts and finished inventory from suppliers though the firm and on to customers.” It requires right product in the right place at the right time.
Logistics is part of supply chains. It connects the relationship between producing and consumption. It is essential for planning and operating a distribution system successfully. The objectives are supplying the right products to the right places at the right times for the least costs. Logistics appears with the development of the economy and the appearance of goods and products, therefore logistics a traditional and old economic activity.
Logistics process is a key to execution and achieving results. The objectives in general are accomplishing things and creating value. Detailed speaking, logistics process coordinates all activities involved in acquiring, converting and distributing goods from raw materials source to target group to satisfy customers’ need. And deliver the required levels of customer service in an efficient, cost effective manner. However, pleasing customers is not the only goal for logistics process, but also must operate productively to bring profits for the company.
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Supplier selection and evaluation
Purchase contract Purchasing and ordering Ordering process and information
Logistics process
Warehousing
Receiving, packing and dispatching
Transport arrangements Transportation and delivery Distribution channel
Reverse logistics
(0.5.
Logistics process)
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(0.6.
Logistics management)
XV. SWOT analyses: Strength:
? ? ? ? Globalization. Technology. Quality control. Inventory reduction
Weakness:
? Lack of joint ventures
Opportunities:
? ? ? Global expansion. Large global contracts. Joint collaborative ventures
Threats:
? ? ? Environmental policies. Unorganized sector. Rising value added tax
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XVI. Five forces model:
Threat of new entrants
Threat of substitute
Bargaining power of consumers
Bargaining power of suppliers
Rivalry & competition
(0.7. Five forces model) ? Threat of new entrants:
No entry barrier in terms of requirement for licensing needs and industry is vulnerable to easy scale –up and intense competition.
?
Threat of substitute:
The industry is highly customer oriented with multiple vendor options available to customers.
?
Bargaining power of consumers:
A few large users of the industry and companies (e.g. the automobile industry) are able to significantly squeeze transporters.
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?
Bargaining power of suppler:
Government influence on fuel prices makes it difficult for players to predict, control and pass through fuel costs to customers.
?
Rivalry & competition:
Lack of differentiation in services leads to commoditization and further price erosion.
XVII. Growth drivers:
Streamlining of Indirect Tax Structure
Investment in Transportation Infrastructure
Increased Demand of 3 PL services Growth Drivers
Infusion of Qualified Work Force
Recognition of logistics management as a strategic tool
Globalization of Manufacturing Sectors
(0.8.
Growth drivers)
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XVIII. Logistic industry structure: Indian logistics market
Road freight
Express logistics
Container logistics
Liquid logistics
Container Haulage
Inland Container Depot (ICD) and Container Freight Station
Multimodal Transport Operator (MTO)
(0.9.
Logistics industry structure)
XIX. Key challenges:
Geographical Coverage Insufficient Over-burdened ports Warehousing investment is low Insufficient distribution channels/infrastructure bottlenecks restrict the scope to reach consumers of products nationwide. India has a long coastline. However, the country’s port system isn’t utilized properly. 70% of the seaborne trade is managed by 2-3 of its 12 major ports. Remaining 185 minor ports in the country are largely underutilized. The infrastructure including roads, airports and seaports are preliminary the main target areas of investment. However, warehousing, a facilitator for the agricultural sector, has attracted lower investment that reduced its pace of growth in comparison to rising farm output. Technology usage is still very low in India, which restricts the scope of increasing efficiency and productivity.
Technology Usage Cost /Quality Service
of According to industry analysts, logistics costs in India are among the worlds highest and outside of the metros and a few cities, the delivery time is very uncertain.
(0.10. Key challenges)
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?
Multimodal transport operation:
It is the chain that interconnects different modes of transport -air, sea, and land into one complete process that ensures an efficient and cost-effective door-to-door movement of goods under the responsibility of a single transport operator, known as a Multimodal Transport Operator (MTO), on one transport document. Multimodal transport gained increased importance as the facilitator of a global supply chain due to the development of logistics and supply chain management as a competitive strategic management tool. Reduction of logistics costs is one of the important benefits of multimodal transportation, thereby reducing the overall cost to the exporter and making his products more competitive in the international market.
?
Recently joint venture in the sector:
Secunderabad-based logistics company Gati Ltd has signed an agreement with Kintesu World Express Inc (Tokyo Stock Exchange-listed company offering air and ocean freight services with a presence in 32 countries) in second week of April FY2012-13.
Details of the Deal: o o o o The Japanese company will invest Rs. 267.7 crore for a 30% stake. Gati will transfer their express distribution and supply chain business to the new joint venture, in which Gati will hold a 70% stake and rest will be hold by Kintesu World Express Inc. The business unit will operate under the name Gati-Kintetsu Express “Mahendra Agarwal” (CEO) GATI said the funds raised from KWE transaction will be used to reduce debt and the joint venture will be consolidated in Gati Financials.
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? COMPANY OVERVIEW:
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1. Auto cars- care of Videocon logistic profile:
AUTO CARS is the logistics division of VIDEOCON INDUSTRIES LTD, which is a USD 5 Billion conglomerate. Instituted in 1993, we have established an impeccable record of reliable service and just-in-time delivery over the past decade and a half. Their area of expertise is end-to-end logistics solutions, which include Transportation, Warehousing and Distribution, across India.
They provide top-notch service at best-in-the-industry rates. Their experience, expertise, infrastructure, equity, dependability and reach are second to none. Going beyond transportation, they are also providing value-added inputs to help streamline the entire logistics process. (1)
1.1.
Mission:
Act as a single, central manager and irreplaceable services provider for their customers by providing top-notch logistics, warehousing and supply chain optimization solutions.
Continually improve the effectiveness of their systems to shape our customers competitive advantage.
Provide precise and reliable delivery of goods to customers based on a thorough understanding of the characteristics of each business, product and customer.
Think Ahead – Power Ahead. (2)
1.2.
Vision:
To become a business enabler by meeting the needs of their customers in the best manner possible.
To become one of the biggest White goods logistics service providers in the country
1.3.
Guiding principal:
o o o o o o o o Be fair and humble. Act with sincerity and in good faith. Strive to worthy of trust. Aim high. Maintain an honest perspective. Take on challenges with enthusiasm. Demonstrate their competence as an organization and as individuals. Create an atmosphere that inspires.
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1.4.
Supply chain optimization:
As globalization continues, distribution and logistics needs are becoming increasingly sophisticated. As a Third Party Logistics Provider (3PL), they can take over the entire logistics function for a company. They can go beyond transportation to provide value-added inputs that help optimize supply chains. These are based on core management information, such as freight trends, sales forecasts and production plans. Specific actions include establishing logistics center, reviewing transport and delivery systems, and constructing optimal information systems.
All the while, they are working towards eliminating logistics bottlenecks and enhancing their customer’s logistics operations on a daily basis. In doing so, they leverage our wealth of indepth knowledge and strong reputation acquired by playing key logistical roles in various industries. (3)
1.5.
Strength and weakness of the auto cars:
? Strengths:
1. Team work between the employee and employee, labour and labour. 2. Proper understanding between the employee and employee, employee and labour, labour and labour as well as higher authority to lower authority. 3. Culture within the organization. (according to this field) 4. Multi skill Staff of the organization. 5. Hierarchy of the corporate as well as this organization. 6. Process flow of the warehouse. 7. Staffs are working on the company goal rather than other goal. They are given the first priority to the organization. 8. Transport as well as time management of this organization.
? Weakness:
1. Security gate pass is not maintained properly. (Unfilled form) still vehicles (trucks) are giving the permission of the go outside. 2. Warehouse daily sheet is not filling up daily bases. 3. Unskilled labour: Because of that, there are possibilities that goods got defective at that time keeping it and taking away from the warehouse for unload the goods. 4. At the time of reporting to other did not follow the rules and regulation like (May I coming sir so on and so for.)
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1.6.
Reliable warehousing:
They have warehouses strategically located across 50 cities, with a total area of approximately 2.2 million sq. ft. under their operations. All our warehouses equipped with standard infrastructure that ensure the safety of your goods against the harshest of elements. Across these 50 cities they are in a position to provide plug & play service option on demand. Stationed security personnel provide round-the-clock protection. They also provide a host of value-added services, which include: ? ? ? Repacking into unit size Labelling ERP documentation
1.7.
Hierarchy of Auto cars a care of Videocon logistic: I. Gandhinagar hierarchy:
(1.11. Gandhinagar hierarchy)
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II. Gandhinagar hierarchy : P.E. / mobile and D2H division:
(1.12 Gandhinagar hierarchy : P.E. / mobile and D2H division)
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1.8.
Hierarchy pyramid:1
GM DGM AGM Sr. Manager Manager Dy. Manager Asst. Manager Sr. Executive Executive Sr. Officer Officer Sr. Assistant Assistant
(1.13 Hierarchy pyramid)
1
Prepare by Bhaumik Shiroya
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1.9.
Warehouse hierarchy:2
Regional manager
Regional accountant
State head
Warehouse incharge
Warehouse executive
Warehouse supervisor
(1.14 Warehouse hierarchy)
2
Prepare by Bhaumik Shiroya
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1.10. Corporate hierarchy:3
CEO
AGM
Transport
C&F
Manager TPT owned vehicle
Manager TPT higher vehicle
Workshop incharge
Key account manager
Regional manager
Manager Accounts
Manager HR
Sr. Manager Audit
Manager IT
(1.15 Corporate hierarchy)
3
Prepare by Bhaumik Shiroya
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? PROJECT DETAIL:
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2. Logistics:
‘Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfilment of orders.’ It is the process of planning, implementing and controlling the efficient, effective flow and 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. Logistics is the management of the flow of resources between the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modelled, analysed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation. In bounding logistics is one of the primary processes of logistics, concentrating on purchasing and arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores. Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Logistics is concerned with getting the products and services where they are needed when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging.
The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible
2.1.
Meaning:
The overall management of the way resources are obtained, stored and moved to the locations where they are required. Logistics management entails identifying potential suppliers and distributors; evaluating how accessible and effective they are and establishing relationships and signing contracts with the companies who offer the best combination of price and service. A company might also choose to handle its own logistics if it is cost-effective to do so. (4)
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2.2.
Process:4 I. Inbound:
Security entry from the gatekeeper
Inward entry
Material unloading (doc)
Material verification
Data entry software (SAP) system application product
Finally goods storage in warehouse
(2.16.
Inbound process)
4
Prepare by Bhaumik Shiroya
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II. Outbound5
Order process
Bill (invoice)
Supervisor outward entry
Loading material
Security verification
L. R. Process
Gate security (checking)
Send material
5
Prepare by Bhaumik Shiroya
(2.17. Outbound process)
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3. Warehouse management:
Purchase of raw materials is an integral part of any business, i.e. manufacturing organization or service organization. Purpose of raw material is to be converted into finished goods for selling, but after purchase and before selling, they need to keep in safety and good care. The timeframe of storage can be short period or longer depending upon nature and requirement of materials.
Any damage or theft to the materials is going to increase cost to the organization. So it becomes important for organization to have a robust and effective warehouse as well as mat erial’s management. Second thing after production and before selling also the warehouse is required for manage the all thing.
3.1.
Meaning:
The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. Provides information on status of goods. It can link the production facility and the consumers or suppliers and production facility. It can also help marketing to serve current customers and expand into new markets.
3.2.
Scope:
The place where raw material and/or finished goods are stored is referred to as warehouse or store. Generally, warehouse is structure or building design keeping in mind raw material and finished goods it is going to store. Therefore, warehouse management should be able to: (5) ? ? ? ? ? ? Receive the purchase goods and entered upon the stock register. Inventory Accounting of raw material, work-in-progress or finished goods. Preservation of the inventory Ability to access goods whenever called upon. Appropriate record keeping through coding as to preserve goods and reduce obsolescence. Proper stocking of goods as ensure smooth handling.
If above objectives are met, warehouse management significantly increases the overall efficiency of the production and organization. A robust warehouse management would ensure that: ? ? ? ? ? ? A smooth flow of production. Appropriate layout management to reduce material handling and equipment handling. Reduce to wastage as well as spoilage. Eliminate the possibility of theft and damage. Ensure preservation of environment and reduce pollution. Encourage cost reduction and driving efficiency.
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3.3.
Stock counting:
Stock counting it means that they are counting the stock physically by separate model and compare with the system record. They are also check the arrangement of the goods inside the warehouse. All warehouses are obligated to undertake some form of stock count. It depends on the law of the country and accounting requirements as to how frequent and comprehensive the count is.
We have seen over recent years a move towards cycle counting or perpetual inventory counts as a replacement for an all-encompassing annual count of stock in the warehouse.
A full stock count usually necessitates the closure of the warehouse for a period of time when all inbound and outbound movements are stopped.
This is normally carried out once a year, at the company’s year end. Some companies will carry out quarterly or possibly half-yearly checks depending on the stipulations laid down by the auditors.
More recently, providing the company can prove that its cycle counting is accurate, auditors have agreed in some cases that if each stock line is counted and audited at least once per annum that will be sufficient for their needs.
Providing the cycle counts are considered to be accurate, the year-end stock figures will be taken from the WMS.
Cycle counting is a popular inventory counting solution that allows businesses to count a number of items in a number of areas within the warehouse without having to count the entire inventory. Cycle counting is a sampling technique where count of a certain number of items infers the count for the whole warehouse. This sampling method is used by pollsters every day where they measure the opinion of a small number of the people and infer that is the opinion of the population.
When a cycle count is performed, there are two inferences that are made. The primary inference is that the accuracy of the items in the cycle count can be used to determine the accuracy of the items in the warehouse as a whole. The other inference is that if an error is found in the cycle count then that error could be expected to occur for other items in the warehouse.(6)
3.4.
Labour management:
The labour used in a warehouse accounts for a significant portion of warehouse operating expenses. Warehouse managers constantly try to optimize the amount of staff they employ and ensure that employees are productive. If warehouse managers have too many employees, and not enough work, then they have to pay employees to wait for work. If too much work exists and
35
not enough employees are available, customer orders are not shipped on time, or warehouse accuracy suffers. Labour Management enables warehouse managers to track the amount of time each user takes to complete a set of tasks. It records this information at both specific and generic levels. It records the task type, material transacted, and source and destination locations. After Labour Management records the information, it analyzes it for two primary purposes, resource planning and employee evaluation. Because the system knows the amount of time and expected work required to complete each task, it can predict how much time or staff is necessary to complete the work in the warehouse.
Labour Management can also assist in employee evaluation. It compares the time performance of employees against their colleagues or engineered standards for labour productivity, and rates employees on their performance level. The performance rating enables the warehouse manager to make decisions about staffing, compensation, training, and work assignment. (7)
3.5.
Quality control:
Purchasing responsibilities are to secure the proper materials. The right quality specifications must be given to suppliers. Logistics quality control refers to using an advanced approach of quality management scientifically and revolving around quality to take a control of logistics process in system management, including guaranteeing and improving logistics quality, working quality and other activities such as planning, organizing, controlling etc. In every operating step, through the beforehand preparation of controlling, the supervision and track during logistics process, the summary and review of feedback control, collect necessary data and find out effective control.
The advantages of quality control are to improve company’s reputation, reduce operating costs and increase service levels. Quality level can be specified to suppliers in the following ways: ? ? ? ? ? Commercial standards, design specifications and engineering drawings. Material and method-of-manufacture specifications. Performance specifications function and fit specifications. Brand or trade names, samples and market grades24. Qualified products list and combination of above specifications
The disadvantages of quality control will lead to customers’ fluctuation, hidden trouble of operating competence, loss of professional skills and damages of corporate culture. The principle of quality control is to tamp foundation, focus on logistics process, improve customer service and keep sustainable development. The company’s logistics target is to accomplish customers’ satisfaction rate more than 95 % and reduce error rate less than 0.5 %.( 8)
In a logistics department, there are 4 goals for the department to consider. They are service quality, warehousing quality, transporting quality and customer feedback quality. The measures of quality control for a department to act contain three steps:
(Quality Inspection Services)
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1) In every step of logistics process, ensure the key points that need to be inspected in all procedures, like inbound and outbound quality check and quality issue handling. 2) Establish a Quality Control (QC) team and all team members should put forward problems, express and share suggestions with each other in a positive attitude. 3) The logistics department should evaluate and develop self-improvement every month in big meetings and the R&D department is responsible to hold quality assessment of each quarter.
3.6.
Security:
Running a warehouse operation is more than just logistics. Apart from planning your stock and distribution, a warehouse manager also has to consider security and fire issues. As a warehouse can contain almost any type of material, it can be prone to outbreaks of fire that are hard to control. If you are storing expensive equipment, it also becomes a target for theft by criminals or even your own staff. (9) There were 9 security guards for warehouse patrolling at night time.
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4. Types of warehouse:
The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. Provides information on status of goods. It can link the production facility and the consumers or suppliers and production facility. It can also helps marketing to serve current customers and expand into new markets.
WAREHOUSE The purpose of warehouse is to store product until customers require them . A warehouse smoothes out market supply and demand fluctuation. It acts as a product mixing sites. It can store extra inventory. The primary role of warehouse is to provide customer service. (10)
4.1.
Private warehouse:
Private warehouse it is also known as proprietary warehousing. Private warehouse store firm’s own goods until they are delivered to retailer or sold. High volumes and high utilization favour owning the warehouse because of economies of scale Private facilities also offer a great deal of controls regarding hiring and firing employees It has ability to maintain physical control over the facility which allows manager to address loss , damage and theft.
4.2.
Public warehouse:
PUBLIC warehouse Public warehouse is owned and operated by third party It is used for short term usages It returns space for individuals or firm needing storage It also allows for flexibility in amount space leased Types of Public Warehouse Merchandise warehouse Refrigerated warehouse Bounded warehouse Household goods warehouse Specialty goods warehouse Bulk storage warehouse.
4.3.
Contract warehouse:
Contract warehouse it is owned and operated by third party specialized form of public warehousing Provides customised services Reasons for the growth of contract warehouses: Product seasonality Geographic coverage requirement Flexibility in testing new marketing Management expertise and dedicated recourses Off-balance sheet financing Reduction in transportation cost.
4.4.
Government warehouse:
These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses. 6
4.5.
Bonded warehouse:
These warehouses are owned, managed and controlled by government as well as private agencies. Private bonded warehouses have to obtain license from the government. Bonded
6
http://ciilogistics.com/coursware/sem2/Warehousing.pdf
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warehouses are used to store imported goods for which import duty is yet to be paid. In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally owned by dock authorities and found near the ports.
4.6.
Co-operative warehouse:
These warehouses are owned, managed and controlled by co-operative societies. They provide warehousing facilities at the most economical rates to the members of their society.
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5. Material management:
Materials management can deal with campus planning and building design for the movement of materials, or with logistics that deal with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts.
The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for the customer base. The materials department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier. Materials is generally measured by accomplishing on time delivery to the customer, on time delivery from the supply base, attaining a freight budget, inventory shrink management, and inventory accuracy. The materials department is also charged with the responsibility of managing new launches.
In some companies materials management is also charged with the procurement of materials by establishing and managing a supply base. In other companies the procurement and management of the supply base is the responsibility of a separate purchasing department. The purchasing department is then responsible for the purchased price variances from the supply base.
In large companies with multitudes of customer changes to the final product over the course of a year, there may be a separate logistics department that is responsible for all new acquisition launches and customer changes. This logistics department ensures that the launch materials are procured for production and then transfers the responsibility to the plant materials management
There are no standards for materials management that are practiced from company to company. Most companies use ERP systems such as SAP, Oracle, BPCS, MAPICS, and other systems to manage materials control. Small concerns that do not have or cannot afford ERP systems use a form of spreadsheet application to manage materials. Some other construction projects use barcode and GPS materials management systems like Track'em.
Materials management is not a science and depending upon the relevance and importance that company officials place upon controlling material flow, the level of expertise changes. Some companies place materials management on a level whereby there is a logistics director, other companies see the importance level as managing at the plant level by hiring an inventory manager or materials manager, and still other companies employ the concept that the supervisors in the plant are responsible accompanied by a planners. (11) Material management is a sub-set of warehouse management dealing exclusively material which contribute the maximum to completion of the end product. The objectives of material management are as follows: ? ? ? ? ? Lower the price of the raw materials. Reduce the cost of production and ensure the smooth flow of production. Maintain quality of raw material as well as finished goods. Maintain good relation with the supplier as to ensure a smooth flow of raw materials. Continuous improvement of the skill set of the workers thereby increasing overall efficiency within the organization.
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5.1.
Material master:
Material master it means that since it is possible to use the Materials Management system without interfacing to Warehouse Management, other views may already exist when you create the WM view in the material master record. For example, data from other system components (such as purchasing, quality management, accounting and storage) may already exist in the material master. (12)
Through this material master we can see all the stock level in the system because this is the function of SAP (system application product) so that we can find it out very easy. In this software material master option is there through this we can do.
5.2.
Inventory management:
The overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. A business's inventory is one of its major assets and represents an investment that is tied up until the item is sold or used in the production of an item that is sold. It also costs money to store, track and insure inventory. Inventories that are mismanaged can create significant financial problems for a business, whether the mismanagement results in an inventory glut or an inventory shortage.7
5.3.
Material handling:
Material handling is very important to any warehouse’s efficient operation, both in terms of transferring goods in and out in moving goods to various locations in the warehouse. The term materials handling is somewhat difficult to define. Some people picture elaborate equipment designed to move goods in a warehouse, such as forklift trucks or conveyor equipment. Other visualizes the actual manual handling of the goods. In fact, elaborate mechanical equipment, manual labour, or a combination can perform materials handlings. We can think most conveniently of materials handling as efficient short distance movement that usually takes place building and a transportation agency.
In a modern logistics system, specially designed equipment most often performs this shortdistance movement; hence thinking of material handling from an equipment perspective is not unusual. However, manual movement is also materials handling. The key factor is efficiency, whether the movement is mechanical, manual or both. Most systems are a combination.
?
Objective:
The general objectives of materials handling is apply to areas beside logistics and have varying importance for the logistics manager.
One basic materials handling objective is to increase the warehouse facility’s usable capacity. A warehouse has fixed interior length, width and height that are cubic capacity. Utilizing as much of this space as possible minimizes the warehouse’s operating cost.
7
http://www.investopedia.com/terms/i/inventory-management.asp
41
5.4.
Inventory info system:
A database used for storing and administering all types of data required for efficient and accurate warehouse inventory management. This may include modules or fields for keeping track of all items and locations, requisitions, back orders, required levels of inventory on hand, reorder points, lead times, inventory error tracking, and more. This type of system may interface with an ERP and other applications.8
5.5.
Physical inventory:
Actual count, weight, volume, measure, or sighting of items in an inventory. Physical inventory counting is a much unloved procedure in most merchandising and manufacturing businesses. The process ensures that the inventory on the company's financial books matches the amount of inventory on the sales floor, stockroom or warehouse. Many businesses undergo a thorough annual inventory count, usually at the end of either the calendar or their fiscal year. Sample, or cycle, counts are often conducted between full inventory counts. Sample counts are not intended to check the entire inventory. Instead, they check a portion of the inventory listed on the books.
8
http://www.businessdictionary.com/definition/inventory-management-information-system.html
42
6. Five “S” of Warehouse Management:
5”S” is a methodology that was developed in Japan that aims to organize the workplace to help it succeed. 5”S” has five primary phases to help create a safe and efficient warehouse: sorting, straightening, systematic cleaning, standardizing, and sustaining. There are also three extra phases included with 5”S”: safety, security, and satisfaction.
6.1.
Sort:
Sort is also known as ‘Seiri’. The first step is to remove all unnecessary items and they have removes.. In this warehouse there is no need for ladders as, the order picking from level 2 and 3 maximum. To reduce the need for pallet reshuffling the items were placed heavy first, then lighter last especially in monsoon.
In this warehouse there is not actual pallets but instead of that they using the pallets which were made for the packaging for the picture tubes to dispatch for its protection. This also helped the stores at the other end, and they could break down a pallet much more safely.
Than the evaluation of an audit of all your tools, parts, materials, instructions, etc; and prioritized it based on usage. Keep required items and make sure they are placed in easy-to-access areas.
6.2.
Sift:
Sift is also known as ‘Stabilize’, ‘Straighten’ or ‘Seiton’. The Stabilize phase includes the popular phrase “A Place for everything and everything in its place.” The main purpose of this step is to increase efficiency. For the easy access they are writing the model no.
On the box with a chalk as labours unable to identify easily which model is where and it also took time to find the no. and read.
During monsoon they sift the goods where the water leakage is not there to protect from the rain due to lengthy process of the company to get the things done where there is a need of monetary term.
After the goods arrival they are being sift to the different location. They have divided generally in four kinds of locations and they are Fresh goods location, D1 location for the damages only in box, D2 location for the slighter damage in goods, D3 location for the heavy damages and the damages which are more than Rs. 5000 are being shifted to the Insurance location.
6.3.
Shine:
Shine is also known as ‘Seiso’. The Shine phase makes sure that workplace is clean, allowing you to better identify inefficiencies in the workflow. The entire workplace and all equipment should be cleaned during this phase and it should be made known that each work area is to be
43
made clean and all tools should be back in their place at the end of shifts moving forward. Messes, leaks and spills should then become very obvious and alert to the in-charge of warehouse where there are inefficiencies in the workflow.
Leakages are there in warehouse which they have removed now due to monsoon. Maintaining a clean workplace should become part of everybody’s daily tasks. This is being cleaned on daily bases in this warehouse.
6.4.
Standardise:
Standardize is also known as ‘Seiketsu’. The Standardize phase ensures that all work processes are consistent. Each work station used for a specific job should be identical, with employees doing the same task being able to switch between stations because they’re each stocked with the same tools and materials.
It’s important that everybody in the workplace knows exactly what they need to do to make sure the 5S process is being stuck to. This has been possible when there is a good teamwork and here there is a good team; all the staff members knows that what they need to do and they also knows all tasks which are being performed by the other staff members.
6.5.
Sustain:
Sustain is also known as ‘Shitsuke’. After the completion of first four steps now that needs to implement the Sustain phase by maintaining and reviewing the new standards.
Sustain is all about making sure the workplace doesn’t revert back to the old way of doing things. Warehouse in-charge should also begin working to find new ways to improve the workflow.
It is clear that solid customer engagement at all levels is key to sustainment. Feedback system should be implemented, allowing the pickers to give positive and negative feedback on regarding the improvement of the warehouse.9
There are three other extra phases can include like I explain below:
9
http://www.premierhandling.com/category/floor-tape/what-is-5s/
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? Safety:
Sometimes an extra phase can be included in the 5S process called Safety. Safety should really be a part of every phase of 5S, but can sometimes be included as its own phase to make sure its importance is more explicitly known.
? Security:
Security is sometimes also added to help make sure security is leveraged as an investment and not an expense. Security finds and addresses risks to key categories of a business by monitoring things like brand equity, fixed assets, human capital and the extended supply chain.
? Satisfaction:
The last extra phase that can be included in 5S is Satisfaction. This places an emphasis on employee satisfaction, as little is more important to making sure 5S is followed than buy-in from the employees. Satisfaction ensures 5S will be followed, sustained and processes will be further improved.
Continuous education is a great way to keep 5S working for the warehouse. For instance, new equipment and products need their own set of standards and employees should know these. Posters and signs are another effective way of helping to maintain standards and educate employees.
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7. Logistics software:
They are two types of software is use like SAP and ACWMS among of them ACWMS is the private for Auto cars. Logistics automation is the application of computer software and/or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution centre, with broader tasks undertaken by supply chain management systems and enterprise resource planning systems.
? ? ?
SAP - System Application & Products It is being utilised for all the logistics company. SAP is an extended warehouse management rapid-deployment solution to run the business in better manner. 10 ACWMS – Auto Cars Warehouse Management System (This software is company’s own software, it is only being utilised in Auto Cars.)
7.1.
SAP (system application & products): Module: MM material management Model: R3
SAP is basically designed to create a common centralized database for all the applications running in all the departments in an organization. The kind of application you can manage includes ? ? ? ? Logistics Finances Reporting HR etc.
The original name for SAP was: Systeme, Anwendungen, Produkte (In German). The system comprises of a number of fully integrated modules, which covers virtually every aspect of the business management.
The Key benefits of SAP are:? ? ? It eliminates the duplication and redundancy in data. Increases productivity, efficiency and better management of resources. Improves Customer Service through better Customer Interaction.
In this software T code is to be different for every company because it is need to buy for their requirement. Some of the T code is quite similar.
10
http://fullformof.in/sap.html
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There are many T-code are use in the SAP for logistics field but here I have mention the most useful T-code.
?
MB52:
This code is use for the check out the total material stock inside the warehouse. Through this code they can directly identifying the stock and base on that they can re issue the stock.
(7.17. MB52 T-code)
?
ME21N:
This code is useful for create a purchase order. This code is most use in the SAP because through this code they can create an order and then send the goods.
(7.18. ME21N T-code)
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?
MIGO:
Material In Goods Out is the full form of the MIGO. This code is use for the material in the system.
(7.19. MIGO T-code)
?
MB1B:
This code is use for the stock transfers as well as stock postings. This code is frequently use in the SAP because most of the time they are send the goods one warehouse to other warehouse as per the demand. This code is profitable for company because it’s a tax free.
(7.20. MB1B T-code)
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?
VF03:
This code is also frequently use in the SAP because this code use for the invoice print out, so without invoice they can’t do anything.
(7.21. VF03 T-code)
7.2.
ACWMS
Auto cars warehouse management system):
This software is private for this company it means that they are creating their only. This software is very powerful for this company because owing to this software they can get all the data very easy and without any difficulty and this software main strong point is we can get DSR (Daily System Report) as well as if we do some mistake during the data entry time and something wrong with the data entry so at the time of saving time the document is not save and error can see on the screen and sometime at the time of wrong information is enter at a moment we can see error.
So base on that I can say that like ACWMS is very useful for this company.
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8. Documentary process:
There are many forms are required in this process of logistics particularly in warehouse department like 402, 403, L.R., Gate pass, invoice etc. ?
402 form: This form is particularly required to fill up when the goods are send to out of
Gujarat border. Without this form goods cannot pass the border it means that Police are hold that goods nearest to Gujarat border.
(7.22. 402 form)
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?
403 forms: This form is needed to fill up when the goods will come outside the Gujarat
border. Without this form goods cannot pass the border it means that Police are hold that goods nearest to Gujarat border.
(7.23. 403 form)
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?
L.R. (Lorry receipt): This form is required to fill up before the goods are loaded inside truck.
In this form the basic things are mention like Truck no, driver name, invoice no, plan no, etc. This form is important for transporter because without this form loaded truck cannot pass the warehouse main gate.
(8.24. Lorry Receipt) ?
Gate pass: This form is filling at the time of when goods are loaded in the truck. This form is
very useful because goods are loaded as per the plan as well as model no. this form also to check at the main gate and compare with the invoice if any mistake found by the security the truck are not cross the warehouse gate.
(8.25. Gate passes / loading slip)
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(8.26. Gate passes / unloading slip)
?
Invoice: This form is very important for all department whether it is logistic or something else
department. In this form include all the goods model no, quantity, rate and total figure with all tax. Base on this invoice company get the money as per the invoice bill. In this bill also vendor names as well as party name that are send the goods are included.
(8.27. Invoice)
This are the forms are required in this process.
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9. Record keeping:
? For current year’s sale Invoice bill (warehouse copy) with LR and POD with the outward stamp, date and time. For current year’s purchases Invoice bill (Duplicate copy) with the inward stamp, date and time and original copy goes to client’s office. They also make files of the bills series wise for all the clients. They also maintain the monthly POD record under this POD certificates is being taken from the Commercial (Branch Logistics coordinator) who checks the entire POD received or not and then gives the POD certificate of the entire POD received for the concerned client. Record room in charge also looks over the enough stock of Blank formatted Bills for all the clients, Key register books, inward registers, outward registers, Visitor’s registers, Loading books and Unloading books. They also keep record of latest five year’s bills and agreements in the old record room and older than that record of last 10 years is being kept in the unused room.
?
?
?
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10. Channel management:
The main objective of distribution strategy is getting the right goods to the right place at the right time at the least possible cost. In other words we can also define distribution channel as a way of moving goods from the point of production to the point of consumption. Logistics goal is to provide customer satisfaction and customer service, speedy and flexible delivery system, pre-sorting and pre-tagging of merchandise, order tracking information and willingness to take back or replace defective goods.
10.1. Receiving:
Check, inspect, unload, record stage, re-palletize that types of task is being in this function. Docks lift trucks, forklift, mobile conveyors, cart, Computer terminals, and bar code printer that types of facilities are in this function. Schedule of arrivals, Priorities, Staging, Problem handling those types of decision is taking in this function. Finally those types of activity is to be doing which is necessary to this function because without receiving goods warehouse can’t do anything at next level.
10.2. Put away:
In this put away function there is main task to move goods storage location. For this task perform there are various facility are provide by the ware house management like pallet lorry so that with the help of this labour can do that things without any difficulty. At the time of perform this task they have to take some important decision like where and when to put away the goods.
10.3. Taking care of goods:
In this taking care of goods I have seen that they are checking the goods every 4 to 5 days whether it is proper or not. They are used to lorry for transfer to goods at one place to other place so that goods are not to damage. They are using the pallets for stacking the goods at better condition. Owing to that in monsoon season goods are safe from the water if water is come inside the warehouse. For this task they have allotted work to me for check the warehouse and find out the mistake and fold like at which place need to be repair and whether stock stacking is proper or not so base on that I have prepared full report on that and gave them with some suggestion.
(10.28. taking care of goods image)
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10.4. Order picking and Storage equipment:
One of the main function of a physical distribution warehouse is order picking, the process of identifying, selecting, retrieving and accumulating the proper item for customer orders. Although order picking by nature is labour intensive an effectively designed order picking and storage system can enhance the speed, accuracy and cost effectiveness of the order picking process. Most storage systems primarily try to use warehouse space effectively. Because the cost of labour, equipment and space for order picking equals about 65 % of total warehouse operating cost any improvement the reduces these costs is greatly important this section covers main equipment picker to parts.
?
Picker to parts:
In picker to part systems, the order picker must travel to the pick location within the aisle:
?
Bin shelving:
Bin shelving is the oldest and most storage system available for storing small parts. The main advantages of bin shelving are the low initial cost and the ability to divide units into various compartments. But at here this things is not utilizes.
?
Modular storage drawers:
Modular storage drawers are cabinets that are divided into drawer and further subdivided into compartments. Their main advantage is their ability to hold a large number of SKUs. Their main drawback is height: the drawers cannot be more than approximately five feet high because the order picker must look into them when picking an order.
?
Mobile storage systems:
Mobile storage systems need only one order picking aisle because a motorized system can slide the racks, shelves or modular drawers to the left or right. The order picker can slide the racks apart to expose the aisle in which we need to pick an order.
?
Order-picking vehicles:
Order picking trucks and person aboard storage and retrieval vehicles increase order picking rates and maximize cubic space utilization. The order picking rides or drives or drivers the vehicles move automatically, allowing the order picker to perform other task while travelling.
10.5. Transportation :
A company’s logistics supply chain is a series of fixed points where the goods come to rest and transpiration links. The transportation link permits goods to flow between the various fixed points and bridges the buyer-seller gap. The transpiration carrier a company utilizes to perform the link service is a decisive factor in determining the efficiency the supply chain facility and partially determines the company’s competitive edge and product demand in a given market area.
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As the logistics profile points out, on time delivery and low shipping costs provide Victoria’s secret with a competitive edge. The goal is to have all orders delivered within seven to ten days from the data customer place the order. The transit time goal is to have the order delivered to the customer within three to five delays such as using a package expeditor, palletizing loads and using delivery time appointments at the assuring that Victoria’s secret provides the delivery service the customer expects.
Transportation is very essential for the logistics department because without this link not possible to send the goods as per the requirements. Either mode of transportation is truck, rail, water, air, pipeline, multiple modes, but at here only truck transportation is utilizes.
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11. Time management:
Time management is very crucial thing for the warehouse as well as other field also. At here they are give an importance of delivery in time because this the things increase a business. They are giving a delivery same day when goods are local country where as 48 hours for up country. They are managing the time as per their policy. In time management also are the loading as well as unloading the truck as per the time so that the truck can use at on other way for delivery. This is also the part of the time management.
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12. Sales and distribution:
A sale is a part of the commercial office. Sales related all the things handle by the commercial office. They have sales person to sales their product and take an order from the dealer as well as showroom. After finished this processor sales department hade prepare a bill and send to the warehouse. Now warehouse executive prepare an invoice and some required document and send the goods as per the bill. So that commercial officer do the sales work and warehouse do the distribution work. In SCM the entire department is interrelated.
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13. Transport management:
Transport management is the most essential tools for the warehouse management because without transport management some of the cost is increase like freight value and additional cost. In transport they have to manage whether it is air, water or road etc. All have to manage otherwise it’s create difficulty for the company. At here I saw a transport management like they have send the material according to plan owing to that they have saving the cost. They are making a plan like how many truck and which type of truck take for the delivery so that they can save the freight cost and other additional cost. A second thing is in the transport management are they having to taking a care of truck or whatever so that they can get good performance from it.
?
Benefits:
Decrease Freight Costs o Automated Routing and Rating o Shipment Consolidation and Load Building o Freight Audit capabilities o Improve Transportation Information Visibility o Transportation cost visibility and allocation o Improved transport information tracking and availability o Improve on-time delivery performance
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14. Floor management:
There are so many activity on the floor like space management, loading and unloading the truck, bar coding of goods, important records which is maintain on floor like gate pass, inward and outward book.
?
Space management:
In the space management there are many things are include like proper stock stocking, use of pallets, proper use of space etc. I have done this all things which I mention over here. Due to that they are utilize all the space of warehouse. Space management is use not only in warehouse it’s also use in transport. So that they can send the goods very efficiently and save their additional transport cost and main benefit is less chance to goods get defective.
?
Bar coding:
A bar code is a series of parallel black and white bars, both of varying widths, whose sequence letters or numbers. This sequence is a code that scanners can translate into important information such as a product type, model, the place of manufacture and the product price. Bar code system is simple to use, accurate and quick and they can store large amounts of information.
Bar code scanners fall into two main categories automatic and handheld. Automatic scanners are in a fixed position and scan packages as they go by on a conveyor belt. In contrast, a worker can carry the portable handheld scanner or wand throughout the warehouse. To read bar codes, these optical scanners emit light beams and translate the reflections bouncing off the black and white bares into electrical signals.
Bar coding had its initial logistics impact when companies used it on cartons and monitored or scanned the codes as the cartons flowed into a warehouse. Bar coding at the warehouse improves data collection accuracy, reduces receiving operation time and data collection labour and helps to integrate data collection with other areas, leading to better database and inventory controls. Companies can assign item more quickly into the warehouse, and warehouse personnel can select and prepare orders much more rapidly.
At here I have seen and work only on handheld. Due to that they can get proper information about the goods like model no, price etc. owing to that there are so many benefit they get like never miss match the model no.
?
Loading and unloading truck:
In this activity the truck is been unloaded after that it’s to be proper stacking inside the warehouse. There are other activity is to be performed for the floor management like gate pass, inward as well outward book keeping so that they can get proper information about the goods which is loaded and send for the delivery. This types of activity is to performed on the floor.
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15. Storage location:
There are three general ways in which goods are stocked as to reduce material handling and increase prompt access. They are as follows: ? Fixed position in which specific area is located where designated goods are stored. If the designated goods are not there, that space will remain empty. Fixed position encourages easy and traceable access to the goods. Random Storage in which goods are stored where ever space is available. Here maximum utilization of the space is achieved. Categorized fixed location in which particular set of products are placed randomly in the allotted space.
? ?
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16. Warehousing Design:
Warehouse design is art in which goods and material can be stored as to reduce wastage, cost of carrying and increase safety. The various factors considered for warehouse design are as follows: ? ? ? ? Easy material handling including receipt, dispatch and storage. Easy supervision of materials as well as personnel Reduce and control obsolescence of the goods by following appropriate method. Optimum utilization of space
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17. Budget analysis:
I have done the zero base budget of Gandhinagar as well as Surat branch. In this report I have done the expanse report, additional bill report as well as other sources for income. This things done for the only Gandhinagar branch and for Surat branch I have done report of Transporter performance; own performance, transportation payment, manpower utilisation performance, vehicle detention, expense as well as additional bill. Process was same for both branches for find out the data and prepares a report.
17.1. Gandhinagar branch: ? Expense report:
This report is prepared with the help of cash ledger. In this process I had to do final like which kind of expense is more affect to the company and base on that I had to find out with the help of pivot table and prepare excel sheet of every month. At the time of prepare this report I have to give justification. Below charts indicates the total expense of the warehouse.
(17.29. Expense report graph at Gandhinagar)
?
Additional bill report:
This report is prepared with the help of daily report of the particular division like D2H, Videocon, Phillips and Electrolux as well as Videocon mobile. In this report I have to do separately because then and then I have come to know about the fright value of that division. In this report I have to find like defective pick up, multi attempt, R.G.P. as well as sales return of separately. Through this company come to know about the all division performance and market value. This report also prepare for every month. Among of it, here I mention some of the charts.
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(17.30. Multi attempt graph at Gandhinagar)
(17.31. Defective pick up graph at Gandhinagar)
(17.32. Courier graph at Gandhinagar)
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?
Other sources for income:
In this report I need to include like which kind of sources for the income and this data I get from the bills. This report also prepare for every month. Base on this report company come to know about, what should be they do next so that that income sources are increase. Below mentioned charts describe the sources of income for auto car.
(17.33. Electric T/C income graph at Gandhinagar)
(17.34. Expense report graph at Gandhinagar)
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17.2. Surat branch: ? Expense report:
This report is prepared with the help of cash ledger. In this process I had to do final like which kind of expense is more affect to the company and base on that I had to find out with the help of pivot table and prepare excel sheet of every month. At the time of prepare this report I have to give justification. At here I had do with some minor changes.
?
Additional bill report:
This report is prepared with the help of daily report of the particular division like D2H, Videocon, Phillips and Electrolux as well as Videocon mobile. In this report I have to do separately because then and then I have come to know about the fright value of that division. In this report I have to find like defective pick up, multi attempt, R.G.P. as well as sales return of separately. Through this company come to know about the all division performance and market value. This report also prepare for every month.
?
Own transporters performance:
This report is preparing with the help of dispatch report. Form this report I’ll getting the data of own vehicle performance like how many quantity they have pickup in every month as well as getting the fright value. This report I have to prepare as a separately division.
(17.35.Own transporter performance graph at Surat)
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?
Transporters performance:
This report is preparing with the help of dispatch report. Form this report I’ll getting the data of other transporters vehicle performance like how many quantity they have pickup in every month as well as getting the fright value. This report I have to prepare as a separately division. After completion of this both report I have to prepare a comparison report so that we come to know which has a better performance and base on that company take any step for better perform.
(17.36.Transporter performance graph at Surat)
?
Transportation payment:
This report is prepared with the help of transporter payment which they have sent to the branch. Through this report company come to know how many payments still left and this report is also prepare to monthly.
(17.37.Payment graph at Surat)
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?
Men power Utilisation Performance:
Through this report company get the information about the inward as well as outward quantity. With the help of this report company get the information about per labour quantity as well as per supervisor quantity. This report is prepared with the help of DSR report. Base on that report company come to know about their labour as well as supervisor working capacity and they are also come to know about the how much goods are inward in the warehouse as well as outward from the warehouse.
(17.38.Men Power Utilization performance graph at Surat)
?
Graphical analysis:
After finish all the report I have to prepare a graphical PPT base on that company get the directly idea about the all report and base on that they can some changes.
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18. Task:
18.1. 1st week:
1st day of my sip I got the observation task from my corporate guide inside the warehouse and also gave the D2H division like sit with this division executive for 1week and observe how he working and how he manage the whole division and ask question to him wherever you didn’t understand. 2nd day of my sip I got task from my warehouse incharge prepare a hierarchy of the organization as well as process flow diagram of this warehouse and understand it. After that I did the data entry in the software and also made documentation. Then I took over the self task of how to use excel different function. 3rd day of my sip I did the documentation of particular order, some warehouse work and did the mail as well as observation of the team work. 4th day of my sip I did the observation and meeting with the P.E. division’s executive and understand the process of the logistics and its function. After that I did the warehouse work like scanning process so on and so far. 5th day of my sip I did the data entry and check inside the warehouse whether stock stacking is proper or not.
18.2. 2nd week:
1st day I did the stock count of D2H division and data entry. Talk with the Vidhi about her Division (knowledge sharing) what she learnt. She told me everything and whatever I learnt I told her about my division. 2nd day I applied whatever Vidhi told me about her division. At this week my division was P.E and mobile. 3rd day I did observation and visit the warehouse and saw the bin card as well as learnt about it. I did the data entry in the system. 4th day I did the major work of the warehouse and meeting with the supervisor. I work with the labour in the warehouse. 5th day I did the meeting with the SHO (state hade operation). I got the task from my corporate guide to check the warehouse and found the mistake base on that prepared a report on monsoon safety and submitted him. After completed these task I learnt more about more function of P.E. and mobile division. 6th day I learn more about the some documentation which is very important for this filed and also I learn about the STO (stock transfer) how it is work like which way its entry did in the system.
18.3. 3rd week:
1st day I did the observation and after that meeting with my corporate guide about my report Which I did in 2nd week he told like do some correction and resubmitted and I did as per his requirements. 2nd day I did the meeting with warehouse incharge about the flow chart and did some correction as per his requirements and resubmitted as well as did some floor work.
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3rd day I did floor work and then I did the major work warehouse which was physical stock count before audit and after that compare with the system data. 4th day I observe the audit work and I did the once again the physical stock counting with the audit officer. 5th day I did the scanning the goods and dispatching it from the warehouse. I check the security work like whether they were record properly maintain or not. 6th day did just observation and some minor warehouse work.
18.4. 4th week:
In this week I did fully floor management work like how they are maintain the goods, space management, record are proper maintain or not by the security, supervisor as well as the transporter. During this task I did all the work which every supervisor does. I check the security record which is not maintain properly so I told them and now they are maintain the record as per the my guidance. When I was on the floor at that time I did the other work related to floor with observation and base on that I gave them to suggestion for making simple. Warehouse Management Module gives you the capability of entering transactions, inquiring about the status of an item or a work order and receiving “real time” verification of data collected on the warehouse floor. Transactions are user friendly interfaces for the many operations being performed in the areas of production control, quality assurance, and inventory control, shipping and receiving. Transactions are also designed to enable barcode scanning on both fixed and portable barcode terminals.
Applicable modules support the production of barcode work order tags, item tags, and bin identifiers. This enables barcode tracking throughout the shop or warehouse floor, which will increase speed and accuracy in the transaction process. I did the stock swift for goods safety and utilised maximum space in the warehouse. I did the plan of goods which was received from the factory or some ware else and then did the scanning for unloaded the goods. This same process reverse I did at the time of when goods send to the other party at that time I prepared a plan in the system and scanning the goods and as per the requirements of the dealer and loaded the truck and send the finished goods. I observed to how to prepare a PDI (proof of delivery inspection) and what they did after made this document. I did the meeting with my corporate guide about my task what I did. End of the week I went to commercial office just for introduction. I prepared a presentation on warehouse requirement at Baroda.
18.5. 5th week:
In this week we are now in commercial office just for knowledge because when I was at Gandhinagar at that time we just observed like some of the process did at commercial office so that, how that process happen, that I can get the information about it. 1st day I did the meeting with the P.E. accountant and sales manager about the how affect the sales department to logistics. Then I observed the practical things which they are showing to us. I learnt practical which I learnt 1st four week theory concept inside the warehouse. Rest of the day I learnt process of different division and how it relate with the warehouse etc.
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18.6. 6th week:
In this week I have been doing the budget work of this warehouse. I have collect all the information which I required and then I will put that information in the excel file, base on that I have prepare a presentation. This all work did in the Gandhinagar warehouse.
18.7. 7th week:
First 3 days I went to Surat for prepare a budget work which I have prepared in Gandhinagar warehouse. Rest of the days I had done the correction in the report which I prepared in Surat.
18.8. 8th week:
Beginning of this week I did the floor work like scanning the goods, loading as well as unloading the vehicle. Between these weeks I had no task to perform just did the observation. End of the week once again I did the physical stock counting.
18.9. 9th week:
In this week I did only my own like preparing a report. Rest of the time I was doing some warehouse work this is the same action for last week.
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19. Learning and experience:
i. knowledge sharing with the colleague, if someone has not brought his/her lunch than they are forcefully seat with together and share his/her lunch to with him/her. I personally pass through this situation. ii. How to work with the labours. iii. Manage the work load as per the situation. iv. How to solve the conflict. v. Behaviour of workers. vi. Effectively use of resources. vii. How to talk with the employee viii. Getting practical knowledge about the some accounting technical word like VAT, additional tax, how TIN no utilises and why government use it. ix. Time management as well as space management x. For warehouse management my experiential learning is roofing, flooring, walls, shutters, ventilators, fencing, office block and basic amenities. xi. How to reporting to are boss. xii. Getting information about the bin card. xiii. Manage myself to every situation. xiv. Work with the team. xv. How to work in stress, like keep clam and think after that take the step. xvi. I learnt about the C-form as well as F-form, which is interstate and stock transfer of goods. xvii. I learnt about the SAP as well as ACWMS software and also excel different function.
xviii. I learnt the inbound as well as outbound process of the warehouse. xix. I learnt about the 3PL of the warehouse. xx. How I can survive in the corporate life like team building, working power etc. xxi. Prepare a report as well as PPT. xxii. Understand the ZBB in practical at the time when I had prepare a budget.
xxiii. Handle the stress at the time of work load.
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20. Result achievement: There are many results achieved during my task time. Among of them I mention best of the achievement of my SIP which is very helpful to me present as well as future corporate life also. First of all I have to say that like, this SIP experience is very much important for me because this is the helpful to me as an initial level when I’ll join the corporate.
1. I was used my skill and it was appreciated by the SHO. 2. Understand as well as learnt the SAP software which is very famous in logistic field. 3. Learnt about the ZBB (Zero Base Budgets) as a practical. 4. I learnt the correct way of stock stacking for space management. 5. I build good relation with the corporate people. 6. I succeed to create a good image in origination which is very helpful to me in future.
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21. Warehouse layout:
(21.39.
wareouse layout)
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22. Flow chart:
(22.40.
Flow chart)
76
23. Annexure: ? Inward register:
(23.39.
Inward register)
?
Outward register:
(23.40.
Outward register)
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?
Bin card:
(23.40. ? Pod certificate:
Bin card)
(21.41.
Pod certificate)
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24. Conclusion:
Finally in conclusion, I have to say that like whatever I learnt in 1st year most of that things is been utilize in the corporate like or I can say that in organization. I learnt so many thing which I know only in theoretical. I have utilized my skills, power and knowledge at here during the task. I understand the value of the logistics field. I did all the work which very important for this field. Learnt many things in these two months such as warehouse management, linkages between branch offices of the clients and logistic division as well as between production plant and logistic division handling record room, guidelines for monsoon safety security, warehouse performance analysis, using excel, basic operations of SAP stock count etc… Observed as well counted their stock in the warehouse physically which consumes lot of time and confusions regarding not matching the stock with the systems stock or count of two different people also do not match many times. Hence, felt that they should take advantage of RFID for their warehouses to overcome this kind of issues in the future and make their stock easy.
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25. Endnote: ? ? ? ? ? ? ? ? ? ?
?
1
SAP - Software Application Product ACWMS - Auto Cars Warehouse Management System which is a company owned software VG - Videocon Group GDP - gross Domestic Product CAGR - Compound Annual Growth Rate 3PL - Third Party Logistics FDI - Foreign Direct Investment POD - Proof of Delivery of the dispatched goods CFS - Container Freight Services P/E - Phillips and Electrolux D2h - Direct to Home and BBCL refers to Bharat Business Channel Ltd. SKU - Stock Keeping Unit DSRs – Daily Sales Report MIS – Management Information System PDI - Physical Defect Inspectionw
1
1
1
1
1
1
1
1
1
1
? ? ? ? ? ? ? ? ?
1
1
1
1
1
GIN - Goods Issue Note while dispatching the goods; goods are being issued from the warehouse on system.
1
SKU – Stock Keeping Unit WMS – Warehouse Management System WCS – Warehouse Control System
1
1
MIGO- Material in goods out
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26. Bibliography
1. http://www.auto-cars.net/Default.aspx 2. http://www.auto-cars.net/aboutus.aspx 3. http://www.auto-cars.net/SupplyChain.aspx 4. http://www.investopedia.com/terms/l/logistics.asp 5. http://www.managementstudyguide.com/warehouse-and-materials-management.htm 6. http://logistics.about.com/od/operationalsupplychain/a/cycle_counting.htm 7. http://docs.oracle.com/cd/E18727_01/doc.121/e13434/T210618T457750.htm 8. http://publications.theseus.fi/bitstream/handle/10024/34241/Chen_Jia%20ni.pdf?sequence=
1
9. http://www.ccmep.org/security-and-safety-concerns-for-warehouse-operations/ 10. http://www.authorstream.com/Presentation/shonu123-1396334-warehouse-and-types-of/ 11. http://en.wikipedia.org/wiki/Materials_management July 22,2013 12. http://help.sap.com/saphelp_470/helpdata/en/c6/f83b374afa11d182b90000e829fbfe/conte
nt.htm
13. http://www.indiabiznews.com/?q=node/2283 14. Logistics business management book
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doc_590332693.pdf
A SUMMER INTERNSHIP PROJECT REPORT ON WAREHOUSE MANAGEMENT PRACTICES
Submitted to: Xcellon Institute
Academic Guide: Prof. Vivek Raina Corporate Guide: Mr. Mahesh Shukla (SHO)
Submitted by: Bhaumik Shiroya (M00139) 02/08/2013
CERTIFICATE
This is to certify that Mr. Bhaumik G Shiroya student of PGPGBM at Xcellon institute. Summer Training Programme has successfully completed for a period of 9th weeks with Auto cars logistics care of Videocon industry from May 27th, 2013 To July 27th, 2013. As per our measurements and reporting structure he is hard working and has been excellent during the training programme.
I wish him all the success for his future.
Signature
Mr. Mahesh Shukla
State Head Operation
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ACKNOWLEDGEMENT
Teacher is a guide. Who shows the right way and gives the support to achieve the one’s goal in terms of gaining knowledge and learning from both the sides, which stops going in the wrong direction. I am thankful to Prof. Daisy Kurien, my Academic Mentor; Prof. Vivek Raina, my Corporate Guide; Mr. Mahesh Shukla (State Head Operations, Auto Cars) for their guidance and continuous support for this report and SIP. I am great full to them for their precious time which was given me to make this report.
I am also thankful to my classmate Vidhi Pitroda for his support during knowledge sharing as part of task given by our Corporate Guide. I am also thanking to all the staff members of Auto cars Warehouse of Gandhinagar who have supported me to learn the software’s like SAP & ACWMS for different clients of Auto Cars and also the warehouse management work; without them I could not learn all of these.
I am also thanking to, Ahmadabad’s staff members for their support to learn the production process, import documentations and the process sales department/commercial.
I would also thankful to almighty god for his grace and mercy to successfully complete this project.
Bhaumik Shiroya
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PREFACE
In two year master degree program of MBA with PGPGBM of theirs provision for doing summer training, after 2nd semester. Summer Internship is a part of academics under the PGPGBM. An application of the theoretical and experiential knowledge which we have been learned in the first year is essential as an experiential learning to get the exposure of ground reality of the market. Hence, due to the requirement of PGPGBM this report has been drafted with the support of Auto Cars; where I had got an opportunity to work as a Management Trainee to get the experience of working for a corporate company. Therefore, we could relate the theory with the reality.
This was an opportunity for me to relate the theoretical knowledge with the practical applications by working as a Management Trainee under Auto Cars. I have learned the software’s such as SAP, ACWMS, and Documentation for warehouse, floor management etc… This Summer Internship Project was to understand the corporate environment and to learn the work which warehouse consist of. This report contains Industry overview, project details and conclusion.
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EXECUTIVE SUMMARY
This SIP had been conducted at Auto Cars – Logistic Division of Videocon Industries Ltd.; warehouse in Gandhinagar. The objective of this SIP was to understand the supply chain management by comparing the class room learning with the actual work learning and observations. This report consisting of Industry overview, Firm Overview, Project details, Experiential Learning and limitation.
Chapter one Industry overview has been include the brief on Logistics Industry in India has been valued 90 US$ 90 billion and employing around 45 million people. Logistic costs are 13% of GDP. There are around 13000 companies in India out of which 730 are leading companies where as in Ahmedabad there are 29 companies of logistic providers. Porter’s Five Forces Model for the industry to understand it easily and primary growth drivers of this industry as well as key trends in the industry, challenges faced and brief on 3PL services which are representing 2% of the Logistic costs.
Chapter two In firm overview it has been brief about the status of the company; they are doing 50% of their business through their own vehicles and for rest they take the support of 4PL to fulfil the requirement of their clients as they do have only around 1050 their own vehicles hence, they are unable to do whole through their vehicles. Their mission is to provide top-notch services, warehousing and supply chain optimization solutions and understanding the customer’s requirements & their vision is to satisfy their customers as well as to become biggest white goods logistic provider in the logistic industry. They do have existence in 50 cities across India. Their area of expertise is end-to-end logistic services across India.
Chapter three and four SIP Details and major tasks include the objective of this project in brief as well as for the major task have been conducted. Task details includes the tasks allotted, performed and results achieved out of that. Main result which has been achieved understands of the supply chain management, warehouse management activities and operations\ between different departments as well as experiential learning. Major tasks also include the detailed about those particular tasks.
Chapter fifth Logistics Management refers to the services and operations which are being done to make the product reach at door step ahead from the customer’s home. This has been als o includes decisions related to Logistics& distribution Logistics.
Chapter sixth, seventh, eighth and ninth is in detailed about warehouse and related operations. Warehouse Management Process consists of the major three processes; Inward process, storage and outward process. Warehouse Management has been brief about Floor Management, Loading & Unloading the vehicles, and Material Handling, stock Keeping Unit, Stock Count, Housekeeping, Labour Management, and Record Room, Warehouse Management Systems and Warehouse Control Systems, Scope of Warehouse Management and Logistics Automation. Five ‘S’ of Warehouse Management i.e. Sort, Sift, Shine, Standardise, Sustain and Extra phases with 5S.
Chapter tenth, eleventh and twelfth is about Facilities & Monsoon Security for Warehouse Management consists of the primary inspections of that and has compiled the data. Through Warehouse Layout it can be seen that the structure of the warehouse that how much they are organised. Warehouse Performance Analysis for 2012-’13 for the purpose of giving justification of getting monetary need by showing the proof of actually expenses has been occurred this much and for the betterment of the next year’s improvement. Then it has been followed by the Learning, conclusion and Limitations. Appendix includes the documents which have been used in the warehouse management process at Auto Cars.
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TABLE OF CONTENT
? ? Industry overview ........................................................................................................9 Company overview......................................................................................................22
1. Auto cars- care of Videocon logistic profile.................................................................23 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. Mission.............................................................................................................23 Vision...............................................................................................................23 Guiding principal..............................................................................................23 Supply chain optimization………………………………………………………............24 Strength and weakness of the auto cars a care of Videocon logistics...............24 Reliable warehousing........................................................................................24 Hierarchy of Auto cars a care of Videocon logistics.........................................25 I. II. 1.8. 1.9. 1.10. ? Gandhinagar hierarchy.................................................................................25 Gandhinagar hierarchy of P.E. and mobile division.....................................26
Hierarchy pyramid.............................................................................................27 Warehouse hierarchy.........................................................................................28 Corporate hierarchy...........................................................................................29
Project detail:...............................................................................................................30
2. Logistics......................................................................................................................31 2.1. 2.2. Meaning............................................................................................................31 Process.............................................................................................................32
3. Warehouse management..............................................................................................34 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. Meaning............................................................................................................34 Scope................................................................................................................34 Stock count.......................................................................................................35 Labour management..........................................................................................35 Quality control...................................................................................................36 Security.............................................................................................................37
4. Types of warehouse.....................................................................................................38 4.1. 4.2. 4.3. 4.4. 4.5. Private warehouse.............................................................................................38 Public warehouse..............................................................................................38 Contract warehouse...........................................................................................38 Government warehouse.....................................................................................38 Bonded warehouse............................................................................................38
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4.6.
Co-operative warehouse...................................................................................39
5. Material management..................................................................................................41 5.1. 5.2. 5.3. 5.4. 5.5. Material master.................................................................................................41 Inventory management.....................................................................................42 Material handling..............................................................................................42 Inventory info system.......................................................................................42 Physical inventory............................................................................................42
6. Five “S” of Warehouse Management...........................................................................43 6.1. 6.2. 6.3. 6.4. 6.5. Sort..................................................................................................................43 Sift....................................................................................................................43 Shine................................................................................................................43 Standardise......................................................................................................44 Sustain.............................................................................................................44
7. Logistics software.......................................................................................................46 7.1. 7.2. SAP (System Application & Products)...............................................................46 ACWMS (Auto cars Warehouse Management System).......................................49
8. Documentary process..................................................................................................50 9. Record keeping...........................................................................................................54 10. Channel management..................................................................................................55 10.1. 10.2. 10.3. 10.4. 10.5. Receiving..........................................................................................................55 Put away...........................................................................................................55 Taking care of goods........................................................................................55 Order picking and Storage equipment..............................................................56 Transportation..................................................................................................56
11. Time management.......................................................................................................58 12. Sales and distribution.................................................................................................59 13. Transport management...............................................................................................60 14. Floor management......................................................................................................61 15. Storage location..........................................................................................................62 16. Warehousing Design...................................................................................................63 17. Budget analysis...........................................................................................................64 17.1. 17.2. Gandhinagar branch.........................................................................................64 Surat branch.....................................................................................................67
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18. Task.............................................................................................................................70 18.1. 18.2. 18.3. 18.4. 18.5. 18.6. 18.7. 18.8. 18.9. 1st week.............................................................................................................70 2nd week............................................................................................................70 3rd week.............................................................................................................70 4th week.............................................................................................................71 5th week.............................................................................................................71 6th week.............................................................................................................72 7th week.............................................................................................................72 8th week.............................................................................................................72 9th week.............................................................................................................72
19. Learning and experience..............................................................................................73 20. Result achieved............................................................................................................74 21. Warehouse layout……………………………………………………………………………………75 22. Flow chart……………………………………………………………………………………………..76 23. Conclusion...................................................................................................................77 24. Annexure......................................................................................................................79 25. Endnote………………………………………………………………………………………………...80 26. Bibliography.................................................................................................................81
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? INDUSTRY OVERVIEW:
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I. Industry snapshot:
The Indian Logistics Industry is estimated at US$ 125 billion in 2010Generated employment for 45 million people. The industry is expected to grow annually at the rate of 15- 20 per cent, reaching revenues of approximately $ 385bn by 2015. Highly Unorganized with organized sector responsible only for 6% market share of organised logistics players is also expected to double to approximately 12 per cent by 2015. The size of the 3PL industry is estimated to be~US$1.5 bn in FY11 (1% of logistics cost).
The share of 3PL services is expected to increase from 6% in FY06 to 13% in FY11, at a CAGR of 25%
Logistics costs are 10-20% of GDP Indian Infrastructure is rated 54th among the 59 countries -Road: 56/59, Rail: 25/59, Seaport: 51/59, Airport: 40/59.
Several factors helped the growth of logistics industry in India over the decade that includes changing tax system, rapid growth in industries such as automobile, pharmaceuticals, FMCG and retail. However, major sectors that are investing huge amounts in logistics industry are aviation, metal & mining and consumer durables. With increasing competition and cost, focus on outsourcing, entry of foreign players is having positive impact on the industry. Three major contributors for the growth of the logistic industry are: emergence of organized retail, increase in foreign trade and India becoming soon the manufacturing hub.
As per the World Bank’s Logistics Performance Index 2010, India is placed at 47th position out of 155 countries. Logistics costs in India are estimated to be approximately 13% of GDP which is considerably high when compared to the corresponding figures for other major economies of the world (as per World Bank 2010 report). For example in 2011 the logistics costs in the European Countries accounted for 7.15% of GDP (as per an article in ‘The Hindu’)
Higher logistics costs are mainly due to poor infrastructure facilities in the country. The higher logistics cost represents higher products/services cost in the international market. The country’s organized logistics market represents 6% of the total market .
The three major contributors for the growth of logistics industry are: emergence of organized retail, increase in foreign trade and India becoming a global manufacturing hub.
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II. Logistics performance index: ( source world bank 2010)
Score Overall LPI Customs Infrastructure International shipments Logistics competence Tracking & tracing Timeliness 3.12 2.70 2.91 3.13 3.16 3.14 3.61 Rank 47 52 47 46 40 52 56
(0.1.
Logistics performance index)
To improve infrastructure facilities and in turn the logistics industry government implemented several projects such as golden quadrilateral project, east-west and north-south corridors (connecting four major metros), Free Trade and Warehousing Zones (FTWZ) and private participation in the sector.
The logistics cost in India – which includes inventory holding, transportation, warehousing, packaging, losses and related administration costs – is estimated at approximately 13 per cent of GDP and is high when compared to the corresponding figures for major economies. India's multilayered tax regime, infrastructure bottlenecks and other inefficiencies have been the primary reasons in keeping logistics costs high in India.
70% of the total domestic product is transported through the road network and 15% through the rail network.
? Elements of Logistics cost
? ? ? ? ? Transportation 35% Inventories 25% Losses 14% Packaging 11% Handling and Warehousing 9%
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III. Share of logistics cost in total sale for various industries:
Name of industry Cement Steel F&B FMCG Durables Apparel Auto Percentage share of logistic cost in total sales 15% 6% 5% 4% 4% 3% 3%
(0.2.
Logistics costs)
IV. Industry trends:
Transportation: Container cargo represents only about 30% (by value) of India's external trade-much lower when compared with the global containerized cargo average of 70-75%. At a growth rate of 12%, India's container cargo traffic is estimated to reach 15 million TEUs by FY16E from about 7.5 million TEUs now (at 12 major ports). In comparison, China has created capacity at its ports to handle more than 100 million TEUs a year. Out of the 15 mn TEUs of total container traffic, we estimate Exim rail container traffic to be 5 mn TEUs by FY16E. This would be a huge opportunity and will significantly benefit container rail operators.
Rising investment in the rail and port spaces also fuels growth in allied industries like wagon manufacturing, port handling equipment, railway electrification systems and construction companies.
To reduce the transportation cost and for quicker movement of cargo Multimodal transport operation is introduced (MTO). MTO helps exporters with less documentation for instance single document for all modes of transport.
V. Indicative break-up of freight handled in the country
Mm tonnes Rail freight Road freight Sea freight Air freight FY06 667 1353 424 1.4 FY07 728 1478 464 1.55 FY08 794 1612 519 1.71 FY09 850 1726 530 1.7 FY10 910 1875 561 1.9 FY11 1025 2046 570 2.1
(0.3. Indicative break up freight)
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VI. 3PL (3rd party logistic):
Outsourcing is everywhere. Logistics industry is no exception. Logistics services like transportation, warehousing, cross docking, Inventory management, packaging and freight forwarding all are part of third party logistic services. Companies in India currently outsource an estimated of 52% of logistics. And 3PL industry is estimated to be US$ 1.5bn in FY11. 3PL represents only 1% of logistics cost emphasis its significance in the industry. Future is no doubt lying in outsourcing. As the growth in the 3PL market is expected to be in the range of 25-30% CAGR over FY11-13E. As of now, the 3PL activity is limited to only few industries like automotive, IT hardware, and telecom and infrastructure equipment.
The organised 3PL market in India can be categorised into three major segments – public sector, private sector and foreign entrants. Some of the major players in each category are: TVS logistics, DIESL (TATA), Panalpina, TCI, Gati, Allcargo, V Trans, Total, VRL and Reliance etc.
VII. Private participation:
The industry is becoming more competent with the entry of global giants like Gazeley Broekmen (Wal-Mart's logistics partner), CH Robinson and Kerry logistics and large Indian corporate houses like Tata, Reliance and Bharti group. A series of mergers and acquisition like DHL acquired Blue Dart, TNT acquired Speed age Express Cargo Service and FedEx bought over Pafex, are also leading to consolidation industry at various levels and segments. Many of these companies are planning to broaden their areas of operation and are also planning to develop their own logistic parks across the country. If the trend continues as per the estimates, the market share of the organized logistics players is expected to double from 6% in 2007 to approx. 12% by 2015.
VIII. Express logistics:
Organised players have monopoly over the express logistics industry. 65% of express business is in the hands of organized players, while semi-organised and unorganised players accounts for 25% and the remaining 10% of the market by EMS Speed Post. But altogether different picture can be witnessed in the domestic segment. In domestic front, unorganised players hold 41% of the market share based on price advantage. While organised players accounts for 45% and EMS Speed Post the remaining 14%. Key players in express cargo are: DHL, FedEx, TNT, UPS, AFL, DTDC, First Flight Couriers, TCI Express, Gati and VRL etc.
IX. Warehouse logistics:
Recently, warehouses have become key growth drivers in the logistics industry. Apart from conventional storing services, warehouses now providing value-added services like consolidation and breaking up of cargo, packaging, labelling, bar coding and reverse logistics etc. warehousing and related activities account for approx. 20% of the total logistics industry.
Most of the warehousing space in India lies with unorganised players in domestic front, which is causing wide supply and demand gap in storage space. According to KPMG, an additional 120million square feet of warehousing space is needed by 2012 to bridge this gap.
Currently, the organised warehousing industry in India has a capacity of approx. 80million metric tonnes and is growing at 35 to 40 per cent per annum. An investment of approximately US$ 500million is being planned by various logistics companies for the development of about 45million
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square feet of warehouse space by 2012.Many players in this segment such as Multi Modal Logistics Park, Mega Food Parks and Free Trade Warehousing Zones have planned next generation storage models.
X. Logistic parks:
About 110 logistics parks spread over approximately 3,500 acres at an estimated cost of $1 bn are expected to be operational and an estimated 45 mn ft2 of warehousing space with an investment of $ 500 mn is expected to be developed by various logistics companies by 2012.
Majority of these logistics parks are planned in close proximity to state capitals. However, availability of large land parcels at relatively low cost, connectivity to multiple markets across states and industrial clusters has led to the emergence of some tier-2 and tier-3 cities as favoured destinations for the development of logistics parks and warehouses.
XI. Market player:
Company Concor Gateway Distriparks Allcargo Global TCI GATI Shreyas logistics Blue dart Yes Container rail Yes Yes CFS Yes Yes Yes Yes Yes Yes yes yes Yes Yes Yes Yes Yes Yes Yes Yes Trucking Warehousing MTO Express Third party
(0.4.
Market player)
XII. List of private players with pan India license:
? ? ? ? ? ? Adani logistics Arshiya international Boxtrans logistics India Central warehousing corporation Concor Container rail road services
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? ? ? ? ? ? ? ? ?
Delhi Assam roadways Emirates trading agency Gateway rail freight Hind terminals India infrastructure & leasing Innovative B2B logistics solutions Pipavav Railway Corporation Reliance infrastructure engineering Sical logistics
XIII. FDI regulation:
? ? ? ? ? ? In general 100% FDI under the automatic route is permitted for all logistic services. FDI up to 100% subject to FIPB approval is permitted for courier services. FDI up to 49% under the automatic route is permitted for air transport services, including air cargo services. 100% FDI is permitted in Ports and Harbours under automatic route. 100% FDI is permitted under the automatic route for storage and warehousing including warehousing of agricultural products with cold storage. 100% FDI is permitted in transport and transport support services through automatic route
XIV. Logistics process:
“Logistics is the process of strategically managing the acquisition, movement and storage of materials, parts and finished inventory from suppliers though the firm and on to customers.” It requires right product in the right place at the right time.
Logistics is part of supply chains. It connects the relationship between producing and consumption. It is essential for planning and operating a distribution system successfully. The objectives are supplying the right products to the right places at the right times for the least costs. Logistics appears with the development of the economy and the appearance of goods and products, therefore logistics a traditional and old economic activity.
Logistics process is a key to execution and achieving results. The objectives in general are accomplishing things and creating value. Detailed speaking, logistics process coordinates all activities involved in acquiring, converting and distributing goods from raw materials source to target group to satisfy customers’ need. And deliver the required levels of customer service in an efficient, cost effective manner. However, pleasing customers is not the only goal for logistics process, but also must operate productively to bring profits for the company.
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Supplier selection and evaluation
Purchase contract Purchasing and ordering Ordering process and information
Logistics process
Warehousing
Receiving, packing and dispatching
Transport arrangements Transportation and delivery Distribution channel
Reverse logistics
(0.5.
Logistics process)
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(0.6.
Logistics management)
XV. SWOT analyses: Strength:
? ? ? ? Globalization. Technology. Quality control. Inventory reduction
Weakness:
? Lack of joint ventures
Opportunities:
? ? ? Global expansion. Large global contracts. Joint collaborative ventures
Threats:
? ? ? Environmental policies. Unorganized sector. Rising value added tax
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XVI. Five forces model:
Threat of new entrants
Threat of substitute
Bargaining power of consumers
Bargaining power of suppliers
Rivalry & competition
(0.7. Five forces model) ? Threat of new entrants:
No entry barrier in terms of requirement for licensing needs and industry is vulnerable to easy scale –up and intense competition.
?
Threat of substitute:
The industry is highly customer oriented with multiple vendor options available to customers.
?
Bargaining power of consumers:
A few large users of the industry and companies (e.g. the automobile industry) are able to significantly squeeze transporters.
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?
Bargaining power of suppler:
Government influence on fuel prices makes it difficult for players to predict, control and pass through fuel costs to customers.
?
Rivalry & competition:
Lack of differentiation in services leads to commoditization and further price erosion.
XVII. Growth drivers:
Streamlining of Indirect Tax Structure
Investment in Transportation Infrastructure
Increased Demand of 3 PL services Growth Drivers
Infusion of Qualified Work Force
Recognition of logistics management as a strategic tool
Globalization of Manufacturing Sectors
(0.8.
Growth drivers)
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XVIII. Logistic industry structure: Indian logistics market
Road freight
Express logistics
Container logistics
Liquid logistics
Container Haulage
Inland Container Depot (ICD) and Container Freight Station
Multimodal Transport Operator (MTO)
(0.9.
Logistics industry structure)
XIX. Key challenges:
Geographical Coverage Insufficient Over-burdened ports Warehousing investment is low Insufficient distribution channels/infrastructure bottlenecks restrict the scope to reach consumers of products nationwide. India has a long coastline. However, the country’s port system isn’t utilized properly. 70% of the seaborne trade is managed by 2-3 of its 12 major ports. Remaining 185 minor ports in the country are largely underutilized. The infrastructure including roads, airports and seaports are preliminary the main target areas of investment. However, warehousing, a facilitator for the agricultural sector, has attracted lower investment that reduced its pace of growth in comparison to rising farm output. Technology usage is still very low in India, which restricts the scope of increasing efficiency and productivity.
Technology Usage Cost /Quality Service
of According to industry analysts, logistics costs in India are among the worlds highest and outside of the metros and a few cities, the delivery time is very uncertain.
(0.10. Key challenges)
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?
Multimodal transport operation:
It is the chain that interconnects different modes of transport -air, sea, and land into one complete process that ensures an efficient and cost-effective door-to-door movement of goods under the responsibility of a single transport operator, known as a Multimodal Transport Operator (MTO), on one transport document. Multimodal transport gained increased importance as the facilitator of a global supply chain due to the development of logistics and supply chain management as a competitive strategic management tool. Reduction of logistics costs is one of the important benefits of multimodal transportation, thereby reducing the overall cost to the exporter and making his products more competitive in the international market.
?
Recently joint venture in the sector:
Secunderabad-based logistics company Gati Ltd has signed an agreement with Kintesu World Express Inc (Tokyo Stock Exchange-listed company offering air and ocean freight services with a presence in 32 countries) in second week of April FY2012-13.
Details of the Deal: o o o o The Japanese company will invest Rs. 267.7 crore for a 30% stake. Gati will transfer their express distribution and supply chain business to the new joint venture, in which Gati will hold a 70% stake and rest will be hold by Kintesu World Express Inc. The business unit will operate under the name Gati-Kintetsu Express “Mahendra Agarwal” (CEO) GATI said the funds raised from KWE transaction will be used to reduce debt and the joint venture will be consolidated in Gati Financials.
21
? COMPANY OVERVIEW:
22
1. Auto cars- care of Videocon logistic profile:
AUTO CARS is the logistics division of VIDEOCON INDUSTRIES LTD, which is a USD 5 Billion conglomerate. Instituted in 1993, we have established an impeccable record of reliable service and just-in-time delivery over the past decade and a half. Their area of expertise is end-to-end logistics solutions, which include Transportation, Warehousing and Distribution, across India.
They provide top-notch service at best-in-the-industry rates. Their experience, expertise, infrastructure, equity, dependability and reach are second to none. Going beyond transportation, they are also providing value-added inputs to help streamline the entire logistics process. (1)
1.1.
Mission:
Act as a single, central manager and irreplaceable services provider for their customers by providing top-notch logistics, warehousing and supply chain optimization solutions.
Continually improve the effectiveness of their systems to shape our customers competitive advantage.
Provide precise and reliable delivery of goods to customers based on a thorough understanding of the characteristics of each business, product and customer.
Think Ahead – Power Ahead. (2)
1.2.
Vision:
To become a business enabler by meeting the needs of their customers in the best manner possible.
To become one of the biggest White goods logistics service providers in the country
1.3.
Guiding principal:
o o o o o o o o Be fair and humble. Act with sincerity and in good faith. Strive to worthy of trust. Aim high. Maintain an honest perspective. Take on challenges with enthusiasm. Demonstrate their competence as an organization and as individuals. Create an atmosphere that inspires.
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1.4.
Supply chain optimization:
As globalization continues, distribution and logistics needs are becoming increasingly sophisticated. As a Third Party Logistics Provider (3PL), they can take over the entire logistics function for a company. They can go beyond transportation to provide value-added inputs that help optimize supply chains. These are based on core management information, such as freight trends, sales forecasts and production plans. Specific actions include establishing logistics center, reviewing transport and delivery systems, and constructing optimal information systems.
All the while, they are working towards eliminating logistics bottlenecks and enhancing their customer’s logistics operations on a daily basis. In doing so, they leverage our wealth of indepth knowledge and strong reputation acquired by playing key logistical roles in various industries. (3)
1.5.
Strength and weakness of the auto cars:
? Strengths:
1. Team work between the employee and employee, labour and labour. 2. Proper understanding between the employee and employee, employee and labour, labour and labour as well as higher authority to lower authority. 3. Culture within the organization. (according to this field) 4. Multi skill Staff of the organization. 5. Hierarchy of the corporate as well as this organization. 6. Process flow of the warehouse. 7. Staffs are working on the company goal rather than other goal. They are given the first priority to the organization. 8. Transport as well as time management of this organization.
? Weakness:
1. Security gate pass is not maintained properly. (Unfilled form) still vehicles (trucks) are giving the permission of the go outside. 2. Warehouse daily sheet is not filling up daily bases. 3. Unskilled labour: Because of that, there are possibilities that goods got defective at that time keeping it and taking away from the warehouse for unload the goods. 4. At the time of reporting to other did not follow the rules and regulation like (May I coming sir so on and so for.)
24
1.6.
Reliable warehousing:
They have warehouses strategically located across 50 cities, with a total area of approximately 2.2 million sq. ft. under their operations. All our warehouses equipped with standard infrastructure that ensure the safety of your goods against the harshest of elements. Across these 50 cities they are in a position to provide plug & play service option on demand. Stationed security personnel provide round-the-clock protection. They also provide a host of value-added services, which include: ? ? ? Repacking into unit size Labelling ERP documentation
1.7.
Hierarchy of Auto cars a care of Videocon logistic: I. Gandhinagar hierarchy:
(1.11. Gandhinagar hierarchy)
25
II. Gandhinagar hierarchy : P.E. / mobile and D2H division:
(1.12 Gandhinagar hierarchy : P.E. / mobile and D2H division)
26
1.8.
Hierarchy pyramid:1
GM DGM AGM Sr. Manager Manager Dy. Manager Asst. Manager Sr. Executive Executive Sr. Officer Officer Sr. Assistant Assistant
(1.13 Hierarchy pyramid)
1
Prepare by Bhaumik Shiroya
27
1.9.
Warehouse hierarchy:2
Regional manager
Regional accountant
State head
Warehouse incharge
Warehouse executive
Warehouse supervisor
(1.14 Warehouse hierarchy)
2
Prepare by Bhaumik Shiroya
28
1.10. Corporate hierarchy:3
CEO
AGM
Transport
C&F
Manager TPT owned vehicle
Manager TPT higher vehicle
Workshop incharge
Key account manager
Regional manager
Manager Accounts
Manager HR
Sr. Manager Audit
Manager IT
(1.15 Corporate hierarchy)
3
Prepare by Bhaumik Shiroya
29
? PROJECT DETAIL:
30
2. Logistics:
‘Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfilment of orders.’ It is the process of planning, implementing and controlling the efficient, effective flow and 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. Logistics is the management of the flow of resources between the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. The complexity of logistics can be modelled, analysed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation. In bounding logistics is one of the primary processes of logistics, concentrating on purchasing and arranging the inbound movement of materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores. Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user. Logistics is concerned with getting the products and services where they are needed when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging.
The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible
2.1.
Meaning:
The overall management of the way resources are obtained, stored and moved to the locations where they are required. Logistics management entails identifying potential suppliers and distributors; evaluating how accessible and effective they are and establishing relationships and signing contracts with the companies who offer the best combination of price and service. A company might also choose to handle its own logistics if it is cost-effective to do so. (4)
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2.2.
Process:4 I. Inbound:
Security entry from the gatekeeper
Inward entry
Material unloading (doc)
Material verification
Data entry software (SAP) system application product
Finally goods storage in warehouse
(2.16.
Inbound process)
4
Prepare by Bhaumik Shiroya
32
II. Outbound5
Order process
Bill (invoice)
Supervisor outward entry
Loading material
Security verification
L. R. Process
Gate security (checking)
Send material
5
Prepare by Bhaumik Shiroya
(2.17. Outbound process)
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3. Warehouse management:
Purchase of raw materials is an integral part of any business, i.e. manufacturing organization or service organization. Purpose of raw material is to be converted into finished goods for selling, but after purchase and before selling, they need to keep in safety and good care. The timeframe of storage can be short period or longer depending upon nature and requirement of materials.
Any damage or theft to the materials is going to increase cost to the organization. So it becomes important for organization to have a robust and effective warehouse as well as mat erial’s management. Second thing after production and before selling also the warehouse is required for manage the all thing.
3.1.
Meaning:
The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. Provides information on status of goods. It can link the production facility and the consumers or suppliers and production facility. It can also help marketing to serve current customers and expand into new markets.
3.2.
Scope:
The place where raw material and/or finished goods are stored is referred to as warehouse or store. Generally, warehouse is structure or building design keeping in mind raw material and finished goods it is going to store. Therefore, warehouse management should be able to: (5) ? ? ? ? ? ? Receive the purchase goods and entered upon the stock register. Inventory Accounting of raw material, work-in-progress or finished goods. Preservation of the inventory Ability to access goods whenever called upon. Appropriate record keeping through coding as to preserve goods and reduce obsolescence. Proper stocking of goods as ensure smooth handling.
If above objectives are met, warehouse management significantly increases the overall efficiency of the production and organization. A robust warehouse management would ensure that: ? ? ? ? ? ? A smooth flow of production. Appropriate layout management to reduce material handling and equipment handling. Reduce to wastage as well as spoilage. Eliminate the possibility of theft and damage. Ensure preservation of environment and reduce pollution. Encourage cost reduction and driving efficiency.
34
3.3.
Stock counting:
Stock counting it means that they are counting the stock physically by separate model and compare with the system record. They are also check the arrangement of the goods inside the warehouse. All warehouses are obligated to undertake some form of stock count. It depends on the law of the country and accounting requirements as to how frequent and comprehensive the count is.
We have seen over recent years a move towards cycle counting or perpetual inventory counts as a replacement for an all-encompassing annual count of stock in the warehouse.
A full stock count usually necessitates the closure of the warehouse for a period of time when all inbound and outbound movements are stopped.
This is normally carried out once a year, at the company’s year end. Some companies will carry out quarterly or possibly half-yearly checks depending on the stipulations laid down by the auditors.
More recently, providing the company can prove that its cycle counting is accurate, auditors have agreed in some cases that if each stock line is counted and audited at least once per annum that will be sufficient for their needs.
Providing the cycle counts are considered to be accurate, the year-end stock figures will be taken from the WMS.
Cycle counting is a popular inventory counting solution that allows businesses to count a number of items in a number of areas within the warehouse without having to count the entire inventory. Cycle counting is a sampling technique where count of a certain number of items infers the count for the whole warehouse. This sampling method is used by pollsters every day where they measure the opinion of a small number of the people and infer that is the opinion of the population.
When a cycle count is performed, there are two inferences that are made. The primary inference is that the accuracy of the items in the cycle count can be used to determine the accuracy of the items in the warehouse as a whole. The other inference is that if an error is found in the cycle count then that error could be expected to occur for other items in the warehouse.(6)
3.4.
Labour management:
The labour used in a warehouse accounts for a significant portion of warehouse operating expenses. Warehouse managers constantly try to optimize the amount of staff they employ and ensure that employees are productive. If warehouse managers have too many employees, and not enough work, then they have to pay employees to wait for work. If too much work exists and
35
not enough employees are available, customer orders are not shipped on time, or warehouse accuracy suffers. Labour Management enables warehouse managers to track the amount of time each user takes to complete a set of tasks. It records this information at both specific and generic levels. It records the task type, material transacted, and source and destination locations. After Labour Management records the information, it analyzes it for two primary purposes, resource planning and employee evaluation. Because the system knows the amount of time and expected work required to complete each task, it can predict how much time or staff is necessary to complete the work in the warehouse.
Labour Management can also assist in employee evaluation. It compares the time performance of employees against their colleagues or engineered standards for labour productivity, and rates employees on their performance level. The performance rating enables the warehouse manager to make decisions about staffing, compensation, training, and work assignment. (7)
3.5.
Quality control:
Purchasing responsibilities are to secure the proper materials. The right quality specifications must be given to suppliers. Logistics quality control refers to using an advanced approach of quality management scientifically and revolving around quality to take a control of logistics process in system management, including guaranteeing and improving logistics quality, working quality and other activities such as planning, organizing, controlling etc. In every operating step, through the beforehand preparation of controlling, the supervision and track during logistics process, the summary and review of feedback control, collect necessary data and find out effective control.
The advantages of quality control are to improve company’s reputation, reduce operating costs and increase service levels. Quality level can be specified to suppliers in the following ways: ? ? ? ? ? Commercial standards, design specifications and engineering drawings. Material and method-of-manufacture specifications. Performance specifications function and fit specifications. Brand or trade names, samples and market grades24. Qualified products list and combination of above specifications
The disadvantages of quality control will lead to customers’ fluctuation, hidden trouble of operating competence, loss of professional skills and damages of corporate culture. The principle of quality control is to tamp foundation, focus on logistics process, improve customer service and keep sustainable development. The company’s logistics target is to accomplish customers’ satisfaction rate more than 95 % and reduce error rate less than 0.5 %.( 8)
In a logistics department, there are 4 goals for the department to consider. They are service quality, warehousing quality, transporting quality and customer feedback quality. The measures of quality control for a department to act contain three steps:
(Quality Inspection Services)
36
1) In every step of logistics process, ensure the key points that need to be inspected in all procedures, like inbound and outbound quality check and quality issue handling. 2) Establish a Quality Control (QC) team and all team members should put forward problems, express and share suggestions with each other in a positive attitude. 3) The logistics department should evaluate and develop self-improvement every month in big meetings and the R&D department is responsible to hold quality assessment of each quarter.
3.6.
Security:
Running a warehouse operation is more than just logistics. Apart from planning your stock and distribution, a warehouse manager also has to consider security and fire issues. As a warehouse can contain almost any type of material, it can be prone to outbreaks of fire that are hard to control. If you are storing expensive equipment, it also becomes a target for theft by criminals or even your own staff. (9) There were 9 security guards for warehouse patrolling at night time.
37
4. Types of warehouse:
The storing of products, including raw materials, parts, goods-in-process, finished goods at and between point-of-origin and point-of-consumption. Provides information on status of goods. It can link the production facility and the consumers or suppliers and production facility. It can also helps marketing to serve current customers and expand into new markets.
WAREHOUSE The purpose of warehouse is to store product until customers require them . A warehouse smoothes out market supply and demand fluctuation. It acts as a product mixing sites. It can store extra inventory. The primary role of warehouse is to provide customer service. (10)
4.1.
Private warehouse:
Private warehouse it is also known as proprietary warehousing. Private warehouse store firm’s own goods until they are delivered to retailer or sold. High volumes and high utilization favour owning the warehouse because of economies of scale Private facilities also offer a great deal of controls regarding hiring and firing employees It has ability to maintain physical control over the facility which allows manager to address loss , damage and theft.
4.2.
Public warehouse:
PUBLIC warehouse Public warehouse is owned and operated by third party It is used for short term usages It returns space for individuals or firm needing storage It also allows for flexibility in amount space leased Types of Public Warehouse Merchandise warehouse Refrigerated warehouse Bounded warehouse Household goods warehouse Specialty goods warehouse Bulk storage warehouse.
4.3.
Contract warehouse:
Contract warehouse it is owned and operated by third party specialized form of public warehousing Provides customised services Reasons for the growth of contract warehouses: Product seasonality Geographic coverage requirement Flexibility in testing new marketing Management expertise and dedicated recourses Off-balance sheet financing Reduction in transportation cost.
4.4.
Government warehouse:
These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses. 6
4.5.
Bonded warehouse:
These warehouses are owned, managed and controlled by government as well as private agencies. Private bonded warehouses have to obtain license from the government. Bonded
6
http://ciilogistics.com/coursware/sem2/Warehousing.pdf
38
warehouses are used to store imported goods for which import duty is yet to be paid. In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally owned by dock authorities and found near the ports.
4.6.
Co-operative warehouse:
These warehouses are owned, managed and controlled by co-operative societies. They provide warehousing facilities at the most economical rates to the members of their society.
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5. Material management:
Materials management can deal with campus planning and building design for the movement of materials, or with logistics that deal with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts.
The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for the customer base. The materials department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier. Materials is generally measured by accomplishing on time delivery to the customer, on time delivery from the supply base, attaining a freight budget, inventory shrink management, and inventory accuracy. The materials department is also charged with the responsibility of managing new launches.
In some companies materials management is also charged with the procurement of materials by establishing and managing a supply base. In other companies the procurement and management of the supply base is the responsibility of a separate purchasing department. The purchasing department is then responsible for the purchased price variances from the supply base.
In large companies with multitudes of customer changes to the final product over the course of a year, there may be a separate logistics department that is responsible for all new acquisition launches and customer changes. This logistics department ensures that the launch materials are procured for production and then transfers the responsibility to the plant materials management
There are no standards for materials management that are practiced from company to company. Most companies use ERP systems such as SAP, Oracle, BPCS, MAPICS, and other systems to manage materials control. Small concerns that do not have or cannot afford ERP systems use a form of spreadsheet application to manage materials. Some other construction projects use barcode and GPS materials management systems like Track'em.
Materials management is not a science and depending upon the relevance and importance that company officials place upon controlling material flow, the level of expertise changes. Some companies place materials management on a level whereby there is a logistics director, other companies see the importance level as managing at the plant level by hiring an inventory manager or materials manager, and still other companies employ the concept that the supervisors in the plant are responsible accompanied by a planners. (11) Material management is a sub-set of warehouse management dealing exclusively material which contribute the maximum to completion of the end product. The objectives of material management are as follows: ? ? ? ? ? Lower the price of the raw materials. Reduce the cost of production and ensure the smooth flow of production. Maintain quality of raw material as well as finished goods. Maintain good relation with the supplier as to ensure a smooth flow of raw materials. Continuous improvement of the skill set of the workers thereby increasing overall efficiency within the organization.
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5.1.
Material master:
Material master it means that since it is possible to use the Materials Management system without interfacing to Warehouse Management, other views may already exist when you create the WM view in the material master record. For example, data from other system components (such as purchasing, quality management, accounting and storage) may already exist in the material master. (12)
Through this material master we can see all the stock level in the system because this is the function of SAP (system application product) so that we can find it out very easy. In this software material master option is there through this we can do.
5.2.
Inventory management:
The overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. A business's inventory is one of its major assets and represents an investment that is tied up until the item is sold or used in the production of an item that is sold. It also costs money to store, track and insure inventory. Inventories that are mismanaged can create significant financial problems for a business, whether the mismanagement results in an inventory glut or an inventory shortage.7
5.3.
Material handling:
Material handling is very important to any warehouse’s efficient operation, both in terms of transferring goods in and out in moving goods to various locations in the warehouse. The term materials handling is somewhat difficult to define. Some people picture elaborate equipment designed to move goods in a warehouse, such as forklift trucks or conveyor equipment. Other visualizes the actual manual handling of the goods. In fact, elaborate mechanical equipment, manual labour, or a combination can perform materials handlings. We can think most conveniently of materials handling as efficient short distance movement that usually takes place building and a transportation agency.
In a modern logistics system, specially designed equipment most often performs this shortdistance movement; hence thinking of material handling from an equipment perspective is not unusual. However, manual movement is also materials handling. The key factor is efficiency, whether the movement is mechanical, manual or both. Most systems are a combination.
?
Objective:
The general objectives of materials handling is apply to areas beside logistics and have varying importance for the logistics manager.
One basic materials handling objective is to increase the warehouse facility’s usable capacity. A warehouse has fixed interior length, width and height that are cubic capacity. Utilizing as much of this space as possible minimizes the warehouse’s operating cost.
7
http://www.investopedia.com/terms/i/inventory-management.asp
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5.4.
Inventory info system:
A database used for storing and administering all types of data required for efficient and accurate warehouse inventory management. This may include modules or fields for keeping track of all items and locations, requisitions, back orders, required levels of inventory on hand, reorder points, lead times, inventory error tracking, and more. This type of system may interface with an ERP and other applications.8
5.5.
Physical inventory:
Actual count, weight, volume, measure, or sighting of items in an inventory. Physical inventory counting is a much unloved procedure in most merchandising and manufacturing businesses. The process ensures that the inventory on the company's financial books matches the amount of inventory on the sales floor, stockroom or warehouse. Many businesses undergo a thorough annual inventory count, usually at the end of either the calendar or their fiscal year. Sample, or cycle, counts are often conducted between full inventory counts. Sample counts are not intended to check the entire inventory. Instead, they check a portion of the inventory listed on the books.
8
http://www.businessdictionary.com/definition/inventory-management-information-system.html
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6. Five “S” of Warehouse Management:
5”S” is a methodology that was developed in Japan that aims to organize the workplace to help it succeed. 5”S” has five primary phases to help create a safe and efficient warehouse: sorting, straightening, systematic cleaning, standardizing, and sustaining. There are also three extra phases included with 5”S”: safety, security, and satisfaction.
6.1.
Sort:
Sort is also known as ‘Seiri’. The first step is to remove all unnecessary items and they have removes.. In this warehouse there is no need for ladders as, the order picking from level 2 and 3 maximum. To reduce the need for pallet reshuffling the items were placed heavy first, then lighter last especially in monsoon.
In this warehouse there is not actual pallets but instead of that they using the pallets which were made for the packaging for the picture tubes to dispatch for its protection. This also helped the stores at the other end, and they could break down a pallet much more safely.
Than the evaluation of an audit of all your tools, parts, materials, instructions, etc; and prioritized it based on usage. Keep required items and make sure they are placed in easy-to-access areas.
6.2.
Sift:
Sift is also known as ‘Stabilize’, ‘Straighten’ or ‘Seiton’. The Stabilize phase includes the popular phrase “A Place for everything and everything in its place.” The main purpose of this step is to increase efficiency. For the easy access they are writing the model no.
On the box with a chalk as labours unable to identify easily which model is where and it also took time to find the no. and read.
During monsoon they sift the goods where the water leakage is not there to protect from the rain due to lengthy process of the company to get the things done where there is a need of monetary term.
After the goods arrival they are being sift to the different location. They have divided generally in four kinds of locations and they are Fresh goods location, D1 location for the damages only in box, D2 location for the slighter damage in goods, D3 location for the heavy damages and the damages which are more than Rs. 5000 are being shifted to the Insurance location.
6.3.
Shine:
Shine is also known as ‘Seiso’. The Shine phase makes sure that workplace is clean, allowing you to better identify inefficiencies in the workflow. The entire workplace and all equipment should be cleaned during this phase and it should be made known that each work area is to be
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made clean and all tools should be back in their place at the end of shifts moving forward. Messes, leaks and spills should then become very obvious and alert to the in-charge of warehouse where there are inefficiencies in the workflow.
Leakages are there in warehouse which they have removed now due to monsoon. Maintaining a clean workplace should become part of everybody’s daily tasks. This is being cleaned on daily bases in this warehouse.
6.4.
Standardise:
Standardize is also known as ‘Seiketsu’. The Standardize phase ensures that all work processes are consistent. Each work station used for a specific job should be identical, with employees doing the same task being able to switch between stations because they’re each stocked with the same tools and materials.
It’s important that everybody in the workplace knows exactly what they need to do to make sure the 5S process is being stuck to. This has been possible when there is a good teamwork and here there is a good team; all the staff members knows that what they need to do and they also knows all tasks which are being performed by the other staff members.
6.5.
Sustain:
Sustain is also known as ‘Shitsuke’. After the completion of first four steps now that needs to implement the Sustain phase by maintaining and reviewing the new standards.
Sustain is all about making sure the workplace doesn’t revert back to the old way of doing things. Warehouse in-charge should also begin working to find new ways to improve the workflow.
It is clear that solid customer engagement at all levels is key to sustainment. Feedback system should be implemented, allowing the pickers to give positive and negative feedback on regarding the improvement of the warehouse.9
There are three other extra phases can include like I explain below:
9
http://www.premierhandling.com/category/floor-tape/what-is-5s/
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? Safety:
Sometimes an extra phase can be included in the 5S process called Safety. Safety should really be a part of every phase of 5S, but can sometimes be included as its own phase to make sure its importance is more explicitly known.
? Security:
Security is sometimes also added to help make sure security is leveraged as an investment and not an expense. Security finds and addresses risks to key categories of a business by monitoring things like brand equity, fixed assets, human capital and the extended supply chain.
? Satisfaction:
The last extra phase that can be included in 5S is Satisfaction. This places an emphasis on employee satisfaction, as little is more important to making sure 5S is followed than buy-in from the employees. Satisfaction ensures 5S will be followed, sustained and processes will be further improved.
Continuous education is a great way to keep 5S working for the warehouse. For instance, new equipment and products need their own set of standards and employees should know these. Posters and signs are another effective way of helping to maintain standards and educate employees.
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7. Logistics software:
They are two types of software is use like SAP and ACWMS among of them ACWMS is the private for Auto cars. Logistics automation is the application of computer software and/or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution centre, with broader tasks undertaken by supply chain management systems and enterprise resource planning systems.
? ? ?
SAP - System Application & Products It is being utilised for all the logistics company. SAP is an extended warehouse management rapid-deployment solution to run the business in better manner. 10 ACWMS – Auto Cars Warehouse Management System (This software is company’s own software, it is only being utilised in Auto Cars.)
7.1.
SAP (system application & products): Module: MM material management Model: R3
SAP is basically designed to create a common centralized database for all the applications running in all the departments in an organization. The kind of application you can manage includes ? ? ? ? Logistics Finances Reporting HR etc.
The original name for SAP was: Systeme, Anwendungen, Produkte (In German). The system comprises of a number of fully integrated modules, which covers virtually every aspect of the business management.
The Key benefits of SAP are:? ? ? It eliminates the duplication and redundancy in data. Increases productivity, efficiency and better management of resources. Improves Customer Service through better Customer Interaction.
In this software T code is to be different for every company because it is need to buy for their requirement. Some of the T code is quite similar.
10
http://fullformof.in/sap.html
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There are many T-code are use in the SAP for logistics field but here I have mention the most useful T-code.
?
MB52:
This code is use for the check out the total material stock inside the warehouse. Through this code they can directly identifying the stock and base on that they can re issue the stock.
(7.17. MB52 T-code)
?
ME21N:
This code is useful for create a purchase order. This code is most use in the SAP because through this code they can create an order and then send the goods.
(7.18. ME21N T-code)
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?
MIGO:
Material In Goods Out is the full form of the MIGO. This code is use for the material in the system.
(7.19. MIGO T-code)
?
MB1B:
This code is use for the stock transfers as well as stock postings. This code is frequently use in the SAP because most of the time they are send the goods one warehouse to other warehouse as per the demand. This code is profitable for company because it’s a tax free.
(7.20. MB1B T-code)
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?
VF03:
This code is also frequently use in the SAP because this code use for the invoice print out, so without invoice they can’t do anything.
(7.21. VF03 T-code)
7.2.
ACWMS
Auto cars warehouse management system):This software is private for this company it means that they are creating their only. This software is very powerful for this company because owing to this software they can get all the data very easy and without any difficulty and this software main strong point is we can get DSR (Daily System Report) as well as if we do some mistake during the data entry time and something wrong with the data entry so at the time of saving time the document is not save and error can see on the screen and sometime at the time of wrong information is enter at a moment we can see error.
So base on that I can say that like ACWMS is very useful for this company.
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8. Documentary process:
There are many forms are required in this process of logistics particularly in warehouse department like 402, 403, L.R., Gate pass, invoice etc. ?
402 form: This form is particularly required to fill up when the goods are send to out of
Gujarat border. Without this form goods cannot pass the border it means that Police are hold that goods nearest to Gujarat border.
(7.22. 402 form)
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?
403 forms: This form is needed to fill up when the goods will come outside the Gujarat
border. Without this form goods cannot pass the border it means that Police are hold that goods nearest to Gujarat border.
(7.23. 403 form)
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?
L.R. (Lorry receipt): This form is required to fill up before the goods are loaded inside truck.
In this form the basic things are mention like Truck no, driver name, invoice no, plan no, etc. This form is important for transporter because without this form loaded truck cannot pass the warehouse main gate.
(8.24. Lorry Receipt) ?
Gate pass: This form is filling at the time of when goods are loaded in the truck. This form is
very useful because goods are loaded as per the plan as well as model no. this form also to check at the main gate and compare with the invoice if any mistake found by the security the truck are not cross the warehouse gate.
(8.25. Gate passes / loading slip)
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(8.26. Gate passes / unloading slip)
?
Invoice: This form is very important for all department whether it is logistic or something else
department. In this form include all the goods model no, quantity, rate and total figure with all tax. Base on this invoice company get the money as per the invoice bill. In this bill also vendor names as well as party name that are send the goods are included.
(8.27. Invoice)
This are the forms are required in this process.
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9. Record keeping:
? For current year’s sale Invoice bill (warehouse copy) with LR and POD with the outward stamp, date and time. For current year’s purchases Invoice bill (Duplicate copy) with the inward stamp, date and time and original copy goes to client’s office. They also make files of the bills series wise for all the clients. They also maintain the monthly POD record under this POD certificates is being taken from the Commercial (Branch Logistics coordinator) who checks the entire POD received or not and then gives the POD certificate of the entire POD received for the concerned client. Record room in charge also looks over the enough stock of Blank formatted Bills for all the clients, Key register books, inward registers, outward registers, Visitor’s registers, Loading books and Unloading books. They also keep record of latest five year’s bills and agreements in the old record room and older than that record of last 10 years is being kept in the unused room.
?
?
?
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10. Channel management:
The main objective of distribution strategy is getting the right goods to the right place at the right time at the least possible cost. In other words we can also define distribution channel as a way of moving goods from the point of production to the point of consumption. Logistics goal is to provide customer satisfaction and customer service, speedy and flexible delivery system, pre-sorting and pre-tagging of merchandise, order tracking information and willingness to take back or replace defective goods.
10.1. Receiving:
Check, inspect, unload, record stage, re-palletize that types of task is being in this function. Docks lift trucks, forklift, mobile conveyors, cart, Computer terminals, and bar code printer that types of facilities are in this function. Schedule of arrivals, Priorities, Staging, Problem handling those types of decision is taking in this function. Finally those types of activity is to be doing which is necessary to this function because without receiving goods warehouse can’t do anything at next level.
10.2. Put away:
In this put away function there is main task to move goods storage location. For this task perform there are various facility are provide by the ware house management like pallet lorry so that with the help of this labour can do that things without any difficulty. At the time of perform this task they have to take some important decision like where and when to put away the goods.
10.3. Taking care of goods:
In this taking care of goods I have seen that they are checking the goods every 4 to 5 days whether it is proper or not. They are used to lorry for transfer to goods at one place to other place so that goods are not to damage. They are using the pallets for stacking the goods at better condition. Owing to that in monsoon season goods are safe from the water if water is come inside the warehouse. For this task they have allotted work to me for check the warehouse and find out the mistake and fold like at which place need to be repair and whether stock stacking is proper or not so base on that I have prepared full report on that and gave them with some suggestion.
(10.28. taking care of goods image)
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10.4. Order picking and Storage equipment:
One of the main function of a physical distribution warehouse is order picking, the process of identifying, selecting, retrieving and accumulating the proper item for customer orders. Although order picking by nature is labour intensive an effectively designed order picking and storage system can enhance the speed, accuracy and cost effectiveness of the order picking process. Most storage systems primarily try to use warehouse space effectively. Because the cost of labour, equipment and space for order picking equals about 65 % of total warehouse operating cost any improvement the reduces these costs is greatly important this section covers main equipment picker to parts.
?
Picker to parts:
In picker to part systems, the order picker must travel to the pick location within the aisle:
?
Bin shelving:
Bin shelving is the oldest and most storage system available for storing small parts. The main advantages of bin shelving are the low initial cost and the ability to divide units into various compartments. But at here this things is not utilizes.
?
Modular storage drawers:
Modular storage drawers are cabinets that are divided into drawer and further subdivided into compartments. Their main advantage is their ability to hold a large number of SKUs. Their main drawback is height: the drawers cannot be more than approximately five feet high because the order picker must look into them when picking an order.
?
Mobile storage systems:
Mobile storage systems need only one order picking aisle because a motorized system can slide the racks, shelves or modular drawers to the left or right. The order picker can slide the racks apart to expose the aisle in which we need to pick an order.
?
Order-picking vehicles:
Order picking trucks and person aboard storage and retrieval vehicles increase order picking rates and maximize cubic space utilization. The order picking rides or drives or drivers the vehicles move automatically, allowing the order picker to perform other task while travelling.
10.5. Transportation :
A company’s logistics supply chain is a series of fixed points where the goods come to rest and transpiration links. The transportation link permits goods to flow between the various fixed points and bridges the buyer-seller gap. The transpiration carrier a company utilizes to perform the link service is a decisive factor in determining the efficiency the supply chain facility and partially determines the company’s competitive edge and product demand in a given market area.
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As the logistics profile points out, on time delivery and low shipping costs provide Victoria’s secret with a competitive edge. The goal is to have all orders delivered within seven to ten days from the data customer place the order. The transit time goal is to have the order delivered to the customer within three to five delays such as using a package expeditor, palletizing loads and using delivery time appointments at the assuring that Victoria’s secret provides the delivery service the customer expects.
Transportation is very essential for the logistics department because without this link not possible to send the goods as per the requirements. Either mode of transportation is truck, rail, water, air, pipeline, multiple modes, but at here only truck transportation is utilizes.
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11. Time management:
Time management is very crucial thing for the warehouse as well as other field also. At here they are give an importance of delivery in time because this the things increase a business. They are giving a delivery same day when goods are local country where as 48 hours for up country. They are managing the time as per their policy. In time management also are the loading as well as unloading the truck as per the time so that the truck can use at on other way for delivery. This is also the part of the time management.
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12. Sales and distribution:
A sale is a part of the commercial office. Sales related all the things handle by the commercial office. They have sales person to sales their product and take an order from the dealer as well as showroom. After finished this processor sales department hade prepare a bill and send to the warehouse. Now warehouse executive prepare an invoice and some required document and send the goods as per the bill. So that commercial officer do the sales work and warehouse do the distribution work. In SCM the entire department is interrelated.
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13. Transport management:
Transport management is the most essential tools for the warehouse management because without transport management some of the cost is increase like freight value and additional cost. In transport they have to manage whether it is air, water or road etc. All have to manage otherwise it’s create difficulty for the company. At here I saw a transport management like they have send the material according to plan owing to that they have saving the cost. They are making a plan like how many truck and which type of truck take for the delivery so that they can save the freight cost and other additional cost. A second thing is in the transport management are they having to taking a care of truck or whatever so that they can get good performance from it.
?
Benefits:
Decrease Freight Costs o Automated Routing and Rating o Shipment Consolidation and Load Building o Freight Audit capabilities o Improve Transportation Information Visibility o Transportation cost visibility and allocation o Improved transport information tracking and availability o Improve on-time delivery performance
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14. Floor management:
There are so many activity on the floor like space management, loading and unloading the truck, bar coding of goods, important records which is maintain on floor like gate pass, inward and outward book.
?
Space management:
In the space management there are many things are include like proper stock stocking, use of pallets, proper use of space etc. I have done this all things which I mention over here. Due to that they are utilize all the space of warehouse. Space management is use not only in warehouse it’s also use in transport. So that they can send the goods very efficiently and save their additional transport cost and main benefit is less chance to goods get defective.
?
Bar coding:
A bar code is a series of parallel black and white bars, both of varying widths, whose sequence letters or numbers. This sequence is a code that scanners can translate into important information such as a product type, model, the place of manufacture and the product price. Bar code system is simple to use, accurate and quick and they can store large amounts of information.
Bar code scanners fall into two main categories automatic and handheld. Automatic scanners are in a fixed position and scan packages as they go by on a conveyor belt. In contrast, a worker can carry the portable handheld scanner or wand throughout the warehouse. To read bar codes, these optical scanners emit light beams and translate the reflections bouncing off the black and white bares into electrical signals.
Bar coding had its initial logistics impact when companies used it on cartons and monitored or scanned the codes as the cartons flowed into a warehouse. Bar coding at the warehouse improves data collection accuracy, reduces receiving operation time and data collection labour and helps to integrate data collection with other areas, leading to better database and inventory controls. Companies can assign item more quickly into the warehouse, and warehouse personnel can select and prepare orders much more rapidly.
At here I have seen and work only on handheld. Due to that they can get proper information about the goods like model no, price etc. owing to that there are so many benefit they get like never miss match the model no.
?
Loading and unloading truck:
In this activity the truck is been unloaded after that it’s to be proper stacking inside the warehouse. There are other activity is to be performed for the floor management like gate pass, inward as well outward book keeping so that they can get proper information about the goods which is loaded and send for the delivery. This types of activity is to performed on the floor.
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15. Storage location:
There are three general ways in which goods are stocked as to reduce material handling and increase prompt access. They are as follows: ? Fixed position in which specific area is located where designated goods are stored. If the designated goods are not there, that space will remain empty. Fixed position encourages easy and traceable access to the goods. Random Storage in which goods are stored where ever space is available. Here maximum utilization of the space is achieved. Categorized fixed location in which particular set of products are placed randomly in the allotted space.
? ?
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16. Warehousing Design:
Warehouse design is art in which goods and material can be stored as to reduce wastage, cost of carrying and increase safety. The various factors considered for warehouse design are as follows: ? ? ? ? Easy material handling including receipt, dispatch and storage. Easy supervision of materials as well as personnel Reduce and control obsolescence of the goods by following appropriate method. Optimum utilization of space
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17. Budget analysis:
I have done the zero base budget of Gandhinagar as well as Surat branch. In this report I have done the expanse report, additional bill report as well as other sources for income. This things done for the only Gandhinagar branch and for Surat branch I have done report of Transporter performance; own performance, transportation payment, manpower utilisation performance, vehicle detention, expense as well as additional bill. Process was same for both branches for find out the data and prepares a report.
17.1. Gandhinagar branch: ? Expense report:
This report is prepared with the help of cash ledger. In this process I had to do final like which kind of expense is more affect to the company and base on that I had to find out with the help of pivot table and prepare excel sheet of every month. At the time of prepare this report I have to give justification. Below charts indicates the total expense of the warehouse.
(17.29. Expense report graph at Gandhinagar)
?
Additional bill report:
This report is prepared with the help of daily report of the particular division like D2H, Videocon, Phillips and Electrolux as well as Videocon mobile. In this report I have to do separately because then and then I have come to know about the fright value of that division. In this report I have to find like defective pick up, multi attempt, R.G.P. as well as sales return of separately. Through this company come to know about the all division performance and market value. This report also prepare for every month. Among of it, here I mention some of the charts.
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(17.30. Multi attempt graph at Gandhinagar)
(17.31. Defective pick up graph at Gandhinagar)
(17.32. Courier graph at Gandhinagar)
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?
Other sources for income:
In this report I need to include like which kind of sources for the income and this data I get from the bills. This report also prepare for every month. Base on this report company come to know about, what should be they do next so that that income sources are increase. Below mentioned charts describe the sources of income for auto car.
(17.33. Electric T/C income graph at Gandhinagar)
(17.34. Expense report graph at Gandhinagar)
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17.2. Surat branch: ? Expense report:
This report is prepared with the help of cash ledger. In this process I had to do final like which kind of expense is more affect to the company and base on that I had to find out with the help of pivot table and prepare excel sheet of every month. At the time of prepare this report I have to give justification. At here I had do with some minor changes.
?
Additional bill report:
This report is prepared with the help of daily report of the particular division like D2H, Videocon, Phillips and Electrolux as well as Videocon mobile. In this report I have to do separately because then and then I have come to know about the fright value of that division. In this report I have to find like defective pick up, multi attempt, R.G.P. as well as sales return of separately. Through this company come to know about the all division performance and market value. This report also prepare for every month.
?
Own transporters performance:
This report is preparing with the help of dispatch report. Form this report I’ll getting the data of own vehicle performance like how many quantity they have pickup in every month as well as getting the fright value. This report I have to prepare as a separately division.
(17.35.Own transporter performance graph at Surat)
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?
Transporters performance:
This report is preparing with the help of dispatch report. Form this report I’ll getting the data of other transporters vehicle performance like how many quantity they have pickup in every month as well as getting the fright value. This report I have to prepare as a separately division. After completion of this both report I have to prepare a comparison report so that we come to know which has a better performance and base on that company take any step for better perform.
(17.36.Transporter performance graph at Surat)
?
Transportation payment:
This report is prepared with the help of transporter payment which they have sent to the branch. Through this report company come to know how many payments still left and this report is also prepare to monthly.
(17.37.Payment graph at Surat)
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?
Men power Utilisation Performance:
Through this report company get the information about the inward as well as outward quantity. With the help of this report company get the information about per labour quantity as well as per supervisor quantity. This report is prepared with the help of DSR report. Base on that report company come to know about their labour as well as supervisor working capacity and they are also come to know about the how much goods are inward in the warehouse as well as outward from the warehouse.
(17.38.Men Power Utilization performance graph at Surat)
?
Graphical analysis:
After finish all the report I have to prepare a graphical PPT base on that company get the directly idea about the all report and base on that they can some changes.
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18. Task:
18.1. 1st week:
1st day of my sip I got the observation task from my corporate guide inside the warehouse and also gave the D2H division like sit with this division executive for 1week and observe how he working and how he manage the whole division and ask question to him wherever you didn’t understand. 2nd day of my sip I got task from my warehouse incharge prepare a hierarchy of the organization as well as process flow diagram of this warehouse and understand it. After that I did the data entry in the software and also made documentation. Then I took over the self task of how to use excel different function. 3rd day of my sip I did the documentation of particular order, some warehouse work and did the mail as well as observation of the team work. 4th day of my sip I did the observation and meeting with the P.E. division’s executive and understand the process of the logistics and its function. After that I did the warehouse work like scanning process so on and so far. 5th day of my sip I did the data entry and check inside the warehouse whether stock stacking is proper or not.
18.2. 2nd week:
1st day I did the stock count of D2H division and data entry. Talk with the Vidhi about her Division (knowledge sharing) what she learnt. She told me everything and whatever I learnt I told her about my division. 2nd day I applied whatever Vidhi told me about her division. At this week my division was P.E and mobile. 3rd day I did observation and visit the warehouse and saw the bin card as well as learnt about it. I did the data entry in the system. 4th day I did the major work of the warehouse and meeting with the supervisor. I work with the labour in the warehouse. 5th day I did the meeting with the SHO (state hade operation). I got the task from my corporate guide to check the warehouse and found the mistake base on that prepared a report on monsoon safety and submitted him. After completed these task I learnt more about more function of P.E. and mobile division. 6th day I learn more about the some documentation which is very important for this filed and also I learn about the STO (stock transfer) how it is work like which way its entry did in the system.
18.3. 3rd week:
1st day I did the observation and after that meeting with my corporate guide about my report Which I did in 2nd week he told like do some correction and resubmitted and I did as per his requirements. 2nd day I did the meeting with warehouse incharge about the flow chart and did some correction as per his requirements and resubmitted as well as did some floor work.
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3rd day I did floor work and then I did the major work warehouse which was physical stock count before audit and after that compare with the system data. 4th day I observe the audit work and I did the once again the physical stock counting with the audit officer. 5th day I did the scanning the goods and dispatching it from the warehouse. I check the security work like whether they were record properly maintain or not. 6th day did just observation and some minor warehouse work.
18.4. 4th week:
In this week I did fully floor management work like how they are maintain the goods, space management, record are proper maintain or not by the security, supervisor as well as the transporter. During this task I did all the work which every supervisor does. I check the security record which is not maintain properly so I told them and now they are maintain the record as per the my guidance. When I was on the floor at that time I did the other work related to floor with observation and base on that I gave them to suggestion for making simple. Warehouse Management Module gives you the capability of entering transactions, inquiring about the status of an item or a work order and receiving “real time” verification of data collected on the warehouse floor. Transactions are user friendly interfaces for the many operations being performed in the areas of production control, quality assurance, and inventory control, shipping and receiving. Transactions are also designed to enable barcode scanning on both fixed and portable barcode terminals.
Applicable modules support the production of barcode work order tags, item tags, and bin identifiers. This enables barcode tracking throughout the shop or warehouse floor, which will increase speed and accuracy in the transaction process. I did the stock swift for goods safety and utilised maximum space in the warehouse. I did the plan of goods which was received from the factory or some ware else and then did the scanning for unloaded the goods. This same process reverse I did at the time of when goods send to the other party at that time I prepared a plan in the system and scanning the goods and as per the requirements of the dealer and loaded the truck and send the finished goods. I observed to how to prepare a PDI (proof of delivery inspection) and what they did after made this document. I did the meeting with my corporate guide about my task what I did. End of the week I went to commercial office just for introduction. I prepared a presentation on warehouse requirement at Baroda.
18.5. 5th week:
In this week we are now in commercial office just for knowledge because when I was at Gandhinagar at that time we just observed like some of the process did at commercial office so that, how that process happen, that I can get the information about it. 1st day I did the meeting with the P.E. accountant and sales manager about the how affect the sales department to logistics. Then I observed the practical things which they are showing to us. I learnt practical which I learnt 1st four week theory concept inside the warehouse. Rest of the day I learnt process of different division and how it relate with the warehouse etc.
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18.6. 6th week:
In this week I have been doing the budget work of this warehouse. I have collect all the information which I required and then I will put that information in the excel file, base on that I have prepare a presentation. This all work did in the Gandhinagar warehouse.
18.7. 7th week:
First 3 days I went to Surat for prepare a budget work which I have prepared in Gandhinagar warehouse. Rest of the days I had done the correction in the report which I prepared in Surat.
18.8. 8th week:
Beginning of this week I did the floor work like scanning the goods, loading as well as unloading the vehicle. Between these weeks I had no task to perform just did the observation. End of the week once again I did the physical stock counting.
18.9. 9th week:
In this week I did only my own like preparing a report. Rest of the time I was doing some warehouse work this is the same action for last week.
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19. Learning and experience:
i. knowledge sharing with the colleague, if someone has not brought his/her lunch than they are forcefully seat with together and share his/her lunch to with him/her. I personally pass through this situation. ii. How to work with the labours. iii. Manage the work load as per the situation. iv. How to solve the conflict. v. Behaviour of workers. vi. Effectively use of resources. vii. How to talk with the employee viii. Getting practical knowledge about the some accounting technical word like VAT, additional tax, how TIN no utilises and why government use it. ix. Time management as well as space management x. For warehouse management my experiential learning is roofing, flooring, walls, shutters, ventilators, fencing, office block and basic amenities. xi. How to reporting to are boss. xii. Getting information about the bin card. xiii. Manage myself to every situation. xiv. Work with the team. xv. How to work in stress, like keep clam and think after that take the step. xvi. I learnt about the C-form as well as F-form, which is interstate and stock transfer of goods. xvii. I learnt about the SAP as well as ACWMS software and also excel different function.
xviii. I learnt the inbound as well as outbound process of the warehouse. xix. I learnt about the 3PL of the warehouse. xx. How I can survive in the corporate life like team building, working power etc. xxi. Prepare a report as well as PPT. xxii. Understand the ZBB in practical at the time when I had prepare a budget.
xxiii. Handle the stress at the time of work load.
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20. Result achievement: There are many results achieved during my task time. Among of them I mention best of the achievement of my SIP which is very helpful to me present as well as future corporate life also. First of all I have to say that like, this SIP experience is very much important for me because this is the helpful to me as an initial level when I’ll join the corporate.
1. I was used my skill and it was appreciated by the SHO. 2. Understand as well as learnt the SAP software which is very famous in logistic field. 3. Learnt about the ZBB (Zero Base Budgets) as a practical. 4. I learnt the correct way of stock stacking for space management. 5. I build good relation with the corporate people. 6. I succeed to create a good image in origination which is very helpful to me in future.
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21. Warehouse layout:
(21.39.
wareouse layout)
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22. Flow chart:
(22.40.
Flow chart)
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23. Annexure: ? Inward register:
(23.39.
Inward register)
?
Outward register:
(23.40.
Outward register)
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?
Bin card:
(23.40. ? Pod certificate:
Bin card)
(21.41.
Pod certificate)
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24. Conclusion:
Finally in conclusion, I have to say that like whatever I learnt in 1st year most of that things is been utilize in the corporate like or I can say that in organization. I learnt so many thing which I know only in theoretical. I have utilized my skills, power and knowledge at here during the task. I understand the value of the logistics field. I did all the work which very important for this field. Learnt many things in these two months such as warehouse management, linkages between branch offices of the clients and logistic division as well as between production plant and logistic division handling record room, guidelines for monsoon safety security, warehouse performance analysis, using excel, basic operations of SAP stock count etc… Observed as well counted their stock in the warehouse physically which consumes lot of time and confusions regarding not matching the stock with the systems stock or count of two different people also do not match many times. Hence, felt that they should take advantage of RFID for their warehouses to overcome this kind of issues in the future and make their stock easy.
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25. Endnote: ? ? ? ? ? ? ? ? ? ?
?
1
SAP - Software Application Product ACWMS - Auto Cars Warehouse Management System which is a company owned software VG - Videocon Group GDP - gross Domestic Product CAGR - Compound Annual Growth Rate 3PL - Third Party Logistics FDI - Foreign Direct Investment POD - Proof of Delivery of the dispatched goods CFS - Container Freight Services P/E - Phillips and Electrolux D2h - Direct to Home and BBCL refers to Bharat Business Channel Ltd. SKU - Stock Keeping Unit DSRs – Daily Sales Report MIS – Management Information System PDI - Physical Defect Inspectionw
1
1
1
1
1
1
1
1
1
1
? ? ? ? ? ? ? ? ?
1
1
1
1
1
GIN - Goods Issue Note while dispatching the goods; goods are being issued from the warehouse on system.
1
SKU – Stock Keeping Unit WMS – Warehouse Management System WCS – Warehouse Control System
1
1
MIGO- Material in goods out
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26. Bibliography
1. http://www.auto-cars.net/Default.aspx 2. http://www.auto-cars.net/aboutus.aspx 3. http://www.auto-cars.net/SupplyChain.aspx 4. http://www.investopedia.com/terms/l/logistics.asp 5. http://www.managementstudyguide.com/warehouse-and-materials-management.htm 6. http://logistics.about.com/od/operationalsupplychain/a/cycle_counting.htm 7. http://docs.oracle.com/cd/E18727_01/doc.121/e13434/T210618T457750.htm 8. http://publications.theseus.fi/bitstream/handle/10024/34241/Chen_Jia%20ni.pdf?sequence=
1
9. http://www.ccmep.org/security-and-safety-concerns-for-warehouse-operations/ 10. http://www.authorstream.com/Presentation/shonu123-1396334-warehouse-and-types-of/ 11. http://en.wikipedia.org/wiki/Materials_management July 22,2013 12. http://help.sap.com/saphelp_470/helpdata/en/c6/f83b374afa11d182b90000e829fbfe/conte
nt.htm
13. http://www.indiabiznews.com/?q=node/2283 14. Logistics business management book
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doc_590332693.pdf