15990360 project on safexpress warehousing and supply chain management[1]

8/14/2019 15990360 Project on Safexpress Warehousing and Supply Chain Management[1]

1/51

A PROJECT REPORT ON

WAREHOUSING & DISTRIBUTION IN SUPPY CHAIN

MANAGEMENT

SUBMITTED TO:

UNIVERSITY OF PUNE

SUBMITTED BY:

RAKESH GAUR

PGDMLM(2008-2009)

SINHGAD INSTITUTE OFBUSINESS ADMINISTRAION

AND COMPUTER APPLICATION

ACKNOWLEDGEMENT


2/51

Thanking is formality and sometimes a necessity, nevertheless anessential part of any project report. The list of expression of thanks no matter howextrusive is always incomplete and inadequate. This acknowledgement is no exception.

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

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

RAKESH GAUR

PERFACE

2


3/51

Winter training is an integral part of our academic curriculum. During thetraining, a student gets an opportunity to understand the practical aspect of theory. Training makes the concept clearer. This project report is the outcome of the training that I have undergone atSAFXPRESS PVT. LTD. for the partial fulfillment of Post graduateDiploma in Foreign Trade.

The topic allotted to me by the company WAREHOUSING &DISTRIBUTION IN SPPLY CHAIN MANAGEMENT.

The project emphasizes on the warehousing and distribution in supply chainmanagement done by the company.

I have tried to my best to make a good report.However; no one can claim perfection in its entiretity.So I apologize for the discrepancy, if any, crept in.

Preparation of project requires perseverance, initiatives, proper guidance anddirection. So it is mandatory to take the aid of various departments.

TABELS OF CONTENTS:-

S.NO. CONTENTS Pg.no.1. Introduction 051.1 Company Profile 061.2 Type of Business 141.3 Safexpress Services 151.4 Future Expansion 18

3


4/51

1.5 Companys Turnover & Achievements 202. Supply Chain Management 232.1 Meaning 242.2 Supply Chain Management by Robert B. Handfield 26

2.3 Components of Supply Chain Management 282.4 System of Supply Chain Management 293 Case Study: Dabbawalas of Mumbai 32

4 Warehousing 38

5 FQAs 45

6 Conclusion 52

7 Bibliography 54

CHAPTER-1

INTRODUCTION

Company Profile Types of Business Safexpress Services Future Expansion

4


5/51


6/51

Company Profile

Safexpress Indias Leading Logistics Company is renowned for its domainexpertise and experienced manpower in the LSCM sector. Safexpress can

best understand your Logistics and distribution requirements and can offer the most suitable Logistics model and solution to you. Safexpress has thelargest network coverage across India traversing over 3,50,000 km. everyday covering over 550 locations through more than 750 routes operating 24hours a day 365 days a year reaching these locations through its fleet of 3000 vehicles operating on. All Safexpress vehicles have all-weather proof containers for safe transit. Safexpress also operates through Air to locationsdirectly covered by flights and to all other locations on a multi modal basis.

Safexpress have a Integrated Logistics Management. It is our 3PL Productthat optimises your companys supply chain. First, we examine the linkages

between your suppliers, producers, buyers, intermediaries and end users inorder to identify time and cost inefficiencies. Next, we deploy our uniquemix of local know-how, global practices and cutting-edge technology to

provide integrated supply chain solutions. These range from specificservices such as warehouse management, statutory compliance andinvoicing - to an entire gamut of third party logistics services .

6


7/51

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

The Latest of the material handling equipment are used at Safexpress' hubsto ensure safety and remove Laxity from material handling. Equipmentincluding hydraulic hand pallet trucks, dock levelers, trolleys, fork liftsmultilevel pallet stackers are used by Safexpress. Chain Pulleys and Craneshandle consignments which are not possible by smaller equipments tomanoeuvre.It might not be out of place to mention here all the hubs of Safexpress are on

platform level height. Any Logistician will understand and appreciate theessentiality and importance platform level warehouses have for materialhandling.

7


8/51

Pawan JainChairman and Managing DirectorSafexpress

Anil SayalGeneral ManagerSafexpress

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

After one year i.e in 1996 Safexpress opens super hubs at Delhi, Mumbai andBangalore.

Next year Safexpress launches Integrated Logistics Services. Our first ILS client isNIIT, the first international ILS account is signed with Hilti from Europe. Spurredon by a surging domestic economy, Safexpress extends its fleet to 250 and number of stations to 290. Safexpress Private Limited emerges as an independent entity

8


9/51

Then in 1998 Safeair and Safebox are launched, setting a new standard in valueadded cargo services.All hubs are connected through web-based software. In 1999Having grown by over 300%in 4 years without compromising quality, Safexpress isawarded the Golden Peacock Award for quality and innovation in LogisticsManagement.

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

In the year 2002,2003 Safexpress was declared India's "Largest Logistics ServiceProvider" by Limca Book of Records. In 2005 Safexpress bags the MICO:Power of We Award for excellent service in logistics. In the same year Safexpress fleet crosses3000 mark.

Next year in 2006 Safexpress was awarded by ADC Krone for providing bestlogistics services and in same year Safexpress bags prestigious RAI's (RetailersAssociation of India) Award for Best Logistics Service Provider.

HISTORY

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

1996 Safexpress opens super hubs at Delhi, Mumbai and Bangalore.

1997 Safexpress launches Integrated Logistics Services. Our first ILS client is

9


10/51

NIIT, the first international ILS account is signed with Hilti fromEurope.Spurred on by a surging domestic economy, Safexpress extends itsFleet to 250 and number of stations to 290.

Safexpress Private Limited emerges as an independent entity.

1998 Safeair and Safebox are launched, setting a new standard in valueadded cargo services.All hubs are connected through web-based software.

1999 Having grown by over 300% in 4 years without compromising quality,Safexpress is awarded the Golden Peacock Award for quality

and innovation in Logistics Management.

2000 Pilot run for GPS starts on 28 routes.

Safexpress reaches the 350-destinations mark and the fleet crosses1400.

2001 Safexpress upgrades and launches a whole lot of features onwww.safexpress.com including ePod, Virtual Cargo andPrivileged Member.

2002 Safexpress declared Indias Largest Logistics Service ProviderBy Limca Book of Records 2002.

2003 Safexpress declared Indias Larges Logistics Service Provider by Limca Book of Records 2003.Mr. Pawan Jain , CMD , Safexpress , becomes one of the finalistsin the prestigious EnYs Entrepreneur of the year Award.

10
http://www.safexpress.com/http://www.safexpress.com/http://www.safexpress.com/http://www.safexpress.com/


11/51

2004 Safexpress inaugurated its 500 th scheduled delivery locationSafexpress bags the Franchise Awards04 for excellence inTeam Work.

2005 Safexpress bags the MICO:Power of We Award for excellent servicein logisticsSafexpress fleet crosses 3000 mark.

2006 Safexpress awarded by ADC Krone for providing best logisticsServices.Safexpress bags prestigious RAIs ( Retailers Association of India )Award for Best Logistics Service Provider.

MISSION

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

VISION

To be a conscious learning organisation maintaining flexibility for

change so as to provide the most customised solutions. Striving11


12/51

towards global market share whilst maintaining dominance in thedomestic market through good hr practice and excellent customer service.

QUALITY

A quality service relies upon constant customer interaction andfeedback. An immediate response to the changing environmentwith pre-defined business processes managed effectively andefficientlylead to the highest output from the lowest input and thisis the strongest measure of quality. The best certification of aquality organisation is the measurement of the scale of the smile onthe customers face

STRENGTHS

Over 550 destinations, spread across 28 states & 7 union territories.

Warehousing space exceeding 3 million square feet.

Over 3,000 all weather-proof ISO 9002 vehicles.

More than 1000 routes, linked through 41 super hubs & hubs.

Delivering more than 3 million packages a month.

Traversing more than 5,00,000 kms a day.

Operating 24 hours a day, 365 days a year .

12


13/51

TYPE OF BUSINESS

Indian Economic Scenario today marks the emergence of total chaotic market withlot of competitors, piling stock of products, lowering margins, taxation changes andmore. In the present situation what is needed to see the blue?The way to higher profits comes from streamlining the channels and outsourcingthe segment of business which is not the core focus or expertise of the company.

One such fragment of business model is Supply Chain. Being a medium of linkingproduct to market, a robust model of supply chain management ensures a betterTAT (turn around time), low inventory holding cost and less of damages.Over the time discipline of business logistics has advanced from the warehouse andtransportation dock to the boardroom of leading Global Enterprises.Supply Chain has to be viewed not only as material and information pipeline but as

integration of logistics with the human factors that need more attention to be paid tounderstanding, creating and managing demand more effectively.

Safexpress works on the Value Chain concept using a framework for examininglinkages between suppliers, producers, buyers, intermediaries and end users.Safexpress, Indias leading logistics company offers Integrated LogisticsManagement, Express, Air, Multi-modal, Door-to-Door, time definite delivery andconsultancy services. The company also offers e-logistics and customized solutionsfor e-business.

13


14/51

SAFEXPRESS SERVICES

EXPRESS

Safexpress service is an express service which involves movement of cargo in allweather proof sealed containers on feeder and express routes. The service is time definitewith a published transit schedule covering more than 550 destinations nation wide and

provides the flexibility for surface, air and multi-modal connectivity with a wide reach

associated with Indian airlines and air taxi operators such as jet airways, Sahara etc.

DRAFT-ON-DELIVERY

Draft on delivery is an unparalleled value-added service wherein the seller can dispatchgoods through Safexpress to the buyer and be assured that the delivery would take placeonly when the draft has been collected.

In the Safexpress DOD system pre-alerts are sent to the consignee to allow reasonabletime for the draft to be made, thus meeting the desired objective of express transit withthe amount ready for collection.

ALL RISK COVER

The management of Safexpress hereby undertakes and declares that:

14


15/51

The company would redeem the value of the loss in the uneventful case of any shortageor damage to the consignment whilst in the custody of Safexpress, subject to the risk charge having been paid by the sender or the recipient as per the company policy. Theamount corresponding to the loss as declared would be paid by the company to the sender or the receipent as required without waiting for any request for the same.

SAFEBOX

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

SAFEAIR

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

ILMSafexpress works on the value chain concept using a framework for examining linkages

between suppliers, producers, buyers, intermediaries & end users.

Safexpress ensures the success of the entire chain, marrying local knowhow with the best

global practices, technology & perspective

CONSULTING

Safexpress offers value added services beyond physical operations in the form of logistics consultancy covering a wide spectrum of the Indian economy.

15


16/51


17/51

FUTURE EXPANSION

Logistics services provider Safexpress plans to invest Rs 800-1,000 crore (Rs 8-10 billion) in five years to expand its operations on the back of the boom in manufacturingand retail activities in the country.

As a result of the expansion, the company's turnover is likely to touch Rs 1,000 crore (Rs10 billion) by 2010.

The company expects to fund its expansion through internal accruals and debt as it claimsto have strong bottomline and cash reserves. The privately-held Safexpress has beengrowing at 35 per cent and posted a turnover of Rs 450 crore (Rs 4.5 billion) in 2006-07.

The company expects similar growth this year as well, Pawan Jain, chairman andmanaging director, told reporters at the CII Logistics 2007 summit in Chennai.

Safexpress intends to set up logistics parks comprising warehouses, vendor managementservices, raw material management and finished products storages at 32 locations acrossthe country.

Each park will come up on an area of 25-30 acres. A group company, which is into therealty business, has already completed around 70 per cent of the land acquisition.

The company is also establishing a 3 lakh sq ft logistics park near Chennai at aninvestment of Rs 35 crore (Rs 350 million). It already operates a 80,000 sq ft warehousein Chennai.

Through the expansion programme, the warehousing capacity of the company will growto 10 million sq ft in the next three years from the current 3 million sq ft.

The company was planning to strengthen its presence in the air cargo segment by takingthree Boeing-737 cargo aircraft on lease. These would cover five cities in the country bythe next financial year, according to Jain. Safexpress has also placed an order for 380trucks to add to its current fleet of 3,000 vehicles.

The company doesn't own the vehicles, but hires them through its network of 59 vendors .

17


18/51

HEALTHCARE SEGMENT is one of Safexpress's special focus area whichcontributes 16 percent of the revenue. With more than than 100 percent customer retention rate Safexpress has always given due importance to the demands of their customers. Aiming at expansion, they are investing heavily in infrastructure development

and will soon be coming up with 32 logistics parks and will be adding seven millionsquare feet of warehousing capacity. The investment is planned for a total of Rs 1000crore in infrastructural development in the next three years. Pawan Jain, Chairman andManaging Director, Safexpress, says, "We have plans for expanding our specialisedlogistics product range. This range would be specifically designed for the healthcareindustry after thoroughly analysing its needs. Apart from offering our multi-modalservices, we will be providing single window solutions and, along with managing thelogistics channel end-to-end from distribution channels to pharmacy or patient level. Wewould be offering specialised logistics solutions to the rural healthcare, customised

pharma and cold warehouses pan-India, packaging solutions, implementing bar-coding to prevent spurious drugs and offering solutions as per regulatory norms like GDP, USFDA, MHRA and GCCDP."

With a view to provide customised logistics services for booming retail industrySafexpress also sponsored the ninth Marketing and Retail Conclave. The conference sawthe presence of leading retail players from all across the world. Vineet Kanujia, GeneralManager Marketing, Safexpress said, "The idea behind sponsoring this conclave was to

bring the retail and logistics industries closer. Safexpress has been at the helm inharnessing and synergising the needs of the retail industry for the growth of the economy.We have successfully managed to gather the required inputs and the coming period will

see us roll out these plans."

TURNOVER 18


19/51

The company hopes to double its turnover to Rs 1,000 crore by 2010, he told reporters onthe sidelines of CII Logistics 2007. The privately-held company has been growing at 35

per cent and posted a turnover of Rs 600 crore in 2007-08. It expects a similar growth thisyear, Mr Jain said.

In three years, Safexpress will add 7 million sq ft of space to its existing 3 million sq ft. Itwill set up logistics parks comprising warehouses, vendor management, raw materialmanagement, finished products storages, and also distribute consignments. These parkswill come up in 32 locations across the country, he said.

EMPLOYEES TURNOVER

At present there are 2500 employees in safexpress but they are planning to expand therenumber of employees in future.

ACHIVEMENTS

Safexpress wins International Business Excellence Award 2008Safexpress CMD, Mr. Pawan Jain conferred with the Bharat Gaurav Puraskar

by the Institute of Economic Studies

19


20/51

Mumbai, September 4, 2008: Logistics Guru and CMD, Safexpress, Mr. Pawan Jainwas conferred with the Bharat Gaurav Puraskar for the Best Business Leader by theInstitute of Economic Studies (IES) this week. His entrepreneurship venture, SafexpressPvt. Ltd. which has grown into one of the leading logistics and supply chain managementcompanies in India was also awarded the International Business Excellence Award for the Best Business Enterprise at the same platform organised at Hotel Grand SukhumvitBy Sofitel at Bangkok, Thailand.

The prestigious award was presented in a ceremony proceeded by a seminar on TheGlobal Indians. The award was given in recognition of the achievements of Mr. PawanJain with respect to bringing innovation, excellence and quality in the field of Logistics.The award was presented to Mr. Jain by the former Deputy Prime Minister of Thailand,Dr. Korn Dabbaransi.

On this grand occasion, Logistics Guru, Mr. Pawan Jain, CMD, Safexpress said Boththese prestigious awards mean a lot to us. It is indeed a proud moment for everyoneassociated with Brand Safexpress. We are happy that our relentless efforts have beenrecognized in the industry. We have always ensured quality, security and timely servicesand promise to continue in delivering the best. We are humbled by this adulation.

This award ceremony was a platform for honoring Indian entrepreneurs and enterprises,who have been consistently demonstrating Business Excellence as per Internationalstandards.

IES is the most esteemed economic institution of the country. It seeks to provide expertadvice on the various facets of Indian economy by way of in-depth study and research.IES has been actively involved in providing information to its members on the criticaldevelopments taking place on the various economic fronts. In present day, it has come toepitomize excellence in economic sphere.

20


21/51

About Safexpress- Safexpress is Indias No. 1 Supply Chain and Logistics Company. Thecompany offers the best and the most innovative solutions for all SCM and Logisticsrequirements. Their services are totally customized as per the demand of differentsegments of the business industry. Courtesy their wide range of quality services,Safexpress has set a benchmark in SCM standards and redefined the functioning of Indian Logistics Industry. Growing at a phenomenal rate of over 30 % in the last coupleof years, Safexpress achieved an annual turnover of Rs. 500 crores in the FY 2006-07.The company is targeting a turnover of Rs. 1000 crores by the year 2010.

CHAPTER-2

SUPPLY CHAIN MANAGEMENT

Meaning Components of Supply Chain Management

21


22/51

Supply Chain Management: Robert B.Handfield

System of Supply Chain Management Processes of Supply Chain management

22


23/51

SUPPLY CHAIN MANAGEMENT

Since, the beginning of the 1990s, there has been a paradigm change in the business scenario, mainly due to the liberalization policy of variouseconomies all over the world, and revolutionary innovation in the field of science and technology.Particularly, information technology and communication infrastructure hasresulted into a continuous acceleration in the magnitude competition. Tosustain themselves in such an erratic environment, firms need to have door competency and productivity. That is why firms are perceived to have moresystemized activities related to movement and storage of goods so as tomake them available at a short noticed with the lower inventory level. For instance, Godrej locks a division of Godrej & Boyce Company has toreduce its order to delivery cycle from there weeks to only three days.Computers giant Hewett Packard has cut the duration of its cycle to deliver to customers in India from the us by one third, from 37 days, to 10 days.All this happened because of higher and systematic. Supply ChainManagement the new and more Indian companies are jumping onto supplychain management bandwagons for the completive edge.

Supply Chain Management is business system of enterprise strategies,

business processes and information technologies for improving the planning, execution and collaboration of material flows, information flows,financial flows and workforce flows in the supply chain. SCM is supported

by modular software applications that integrate.

Activities across organizations, from demand forecasting, product planning, parts purchasing, inventory control, manufacturing, product assembly to product distribution.

DEFINITION

23


24/51

Supply Chain Management is the

process of planning implementing, andcontrolling the operations of the supplychain as efficiently as possible. SupplyChain Management spans all movementand storage of raw materials, work-in-process inventory, and finished goods frompoint-of-origin to point-of-consumption.

The definition one American professionalassociation put forward is that Supply ChainManagement encompasses the planningand management of all activities involvedin sourcing, procurement, conversion, andlogistics management activities.Importantly, it also includes co-ordinationand collaboration with channel partners,

which can be suppliers, intermediaries,third-party service providers andcustomers.

In essence, Supply Chain Managementintegrates supply and demandmanagement within and across companies.

24


25/51

Source : Introduction to Supply Chain Management by Robert B. Handfield, Ernest.

Customers: Customers are the sole purpose of existence of any business.customers interact with retailers or supermarket. Website or telemarketingfirm can also act as an interface for the customer. Retailer works towards fulfillingthe demand, either through inventory or through placing fresh orders with

preceding link in the supply chain. In some case the customers bypass thetraditional supply chain and interact directly with the manufacturers for examplein case of online purchase of computer from Dell Computers, customers directly

place an order with a manufacturer i.e. Dell.

Retailers/Distributors: Retailers interact with distributors or manufacturersdirectly to fulfill the demand created by their respective customers. Retailer placesan order with preceding link in the supply chain to replenish its depletinginventories. Typically the orders are initiated by the retailers but, in some case themanufacturers monitors supermarket stocks and automatically initiates reorders,Wal-Mart and P&G using continuous replenishment program is one example.

Manufacturers: Retailers or distributors often place their orders with

manufactures after gauging the demand. Based on the demand fromretailers/distributors manufactures decide their production targets and schedules.Manufacturers usually follow either push based strategy or pull based strategy. In

push based strategy production decisions are based on long-term forecasts thusmaking it more difficult for the manufacturers to adjust their productionschedules.

In a pull-based strategy production is driven by customer demand rather thanforecast thus allowing for greater flexibility in the production. Information flowand technologies like Point-of-Sales ( POS ) data play a significant role in thisstrategy.

25


26/51

Suppliers: Manufactures interact with suppliers to make sure that they have allthe available materials for manufacturing. Raw material orders placed withsuppliers are more precisely determined as they are based on production schedule.But the question arises is the production schedule reflective of the correct demand?

Manufacturers works in close coordination with suppliers in order to reduce highinventories. Just in time is one such technique, which manufacturers use to achievethis objective.

REVERSE SUPPLY CHAIN

Reverse Logistics is the process of planning, implementing and controlling theefficient, effective inbound flow and storage of secondary goods and relatedinformation opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal. Reverse Logistics is also referred to asAftermarket Customer Services. In other words, anytime money is taken from acompanys Warranty Reserve or Service Logistics budget, that is a ReverseLogistics Operation.

26


27/51


28/51

A SYSTEM OF SUPPLY CHAIN MANAGEMENT

Supply Chain Management is a social or soft

system which has goals, components,processes and boundary.

Goals of SCM.

To reduce inventory cost.

To increase sales

To improve the coordination and thecollaboration with suppliers,manufactures and distributor.

Components of SCM System - The componentsof a supply Chain System consist of

1. Supply Chain Software and Hardware,

2. Supply Chain Business processes andUsers of SCM System.

SCM Software and Hardware The core of an SCM System is SCM software. Supply ChainSoftware is module based application. Eachsoftware module automates business activitiesof a functional area in the Supply Chain.

UNIX is the most common operating systemfor running SCM software.

28


29/51


30/51

utilize sophisticated mathematical models for predicating future demand fromhistorical data.

Procurement - Thisis the process of choosing the suppliers that will deliver thegoods and services you need to manufacture or assembly your products or createyour services. It involves price negotiation, receiving, and verifying theshipments.

Manufacturing and Assembly - Raw components are assembled into final products or raw materials are manufactured into finished goods.

Distribution - This is the process of delivering your products or servicesconsumers. Distribution involves warehousing, delivering, invoicing and paymentcollection.

Return - Return and refund are important parts and also the problem pats of supply chain management.

Boundary of the SCM systems - The boundary of a SCM system is he boundary of extended enterprise which includes the company, suppliers, partner,

distributors and customers.

CHAPTER-3

30


31/51

CASE STUDY

DABBAWALAS OF MUMBAI

31


32/51

CASE STUDY

6 Sigma Dabbawalas of Mumbai,And their Operations Management-An Analysis .

The ubiquitous Dabbawalas also known as tiffinwalas who provide a lunch deliveryservice in Mumbai have been in the business over 115 years. Their mode of operationshave been studied by global management gurus and business schools. In 1988, Forbesmagazine conducted a study and rated them a Sigma 6 organization i.e. a 99,9999 per cent correctness which means if the organization delivers six million tiffins, it will notmisplace more than one or just one tiffin in six million transactions.Considering the unique achievement of Dabbawalas in the field their operations, thisstudy has been undertaken to access their group efforts and managerial efficiency. Themain objectives of this subject are :

1) To examine how the Dabbawalas operate;2) To study howDabbawalas of Mumbai perform an amazing role in procurement

and distribution of tiffins to their clients from which one can learn many critical

issues of supply chain, distribution and logistics management. This subject mainlydwells on the examination of their operations and achievement of almost zero-fault performance including their problems and prospects in this changingenvironment of their business, they work as a team to achieve a common goalwith a cent percent accuracy, and

3) To explore the problems and prospects of the Dabbawalass services in the light of changing environment.

Their Glorious Past Performances:

The origin of the Dabbawalas lunch delivery services dates back to the year 1890.Mahadeo Havaji Bacche, a migrant from Pune district ( North Maharastra ) started thislunch delivery service. At that time, eople came from different states and form differentcommunities migrated to Mumbai for work. At working place there were no canteens or fast food centres and they did not bring their lunch from home. Besides, differentcommunities had different food habits, tastes and preferences which could only besatisfied by a home made meal. Recognizing the need, Mahadeo started this lunchdelivery service.

32


33/51

In this business, Mahadeo recruited young men from the villages neighbouring Mumbai(generally Pune district and adjoining areas ), who had no formal education or technicalefficiency to get work in the city. There were 100 Dabbawalas increased. In 1950,Dabbawalas were delivering 1,00,000 lunches per day. After the death of Mahadeo they

became organized in 1954 and formed Nutan Mumbai Tiffin Box Suppliers Charity Trust.The trust had branch offices in different parts of the Mumbai sucha s Chembur, Dadar,Ghatkopar etc. In 2005, 5000 Dabbawalas are delivering around 2,00,000 lunches per day.

Levels of Management:

The trust is a co-operative body having three levels of management, viz.1) The Governing Council, its President, Secretary Top level,2) Mukabams ( Team leaders or supervision ) Middle level,3) Dubbawalas Lower level.

The Governing Council ( also called as Panch Committee ) holds meetings on the15 th day of every month. Mukadams and Dabbawalas are entitled to attend themeetings. At these meetings, Dabbawalas discussed their problems and business

policies. The trust collected Rs. 15 p.m. for each member to maintain a welfarefund. The trust provides various services to its members, including loan facilitiesfor emergencies, educations expenses for children, health care etc. from thiswelfare fund. The Dabbawalas are organized in supervise to sorting Dabbas ( tiffin

box ), to keep records of payment, to settle disputes, to seach new customers andtrain new Daddawalas. Each goup is financially independent but work together inthe delivery process. Each gouup serves its own customers without hampering theinterests of other. Now the Dabbawalas are charging cutomers Rs. 250 to Rs. 300

p.m. for their services. Total monthly collection is shared equally among themembers of the goup. Each Dabbawala receives Rs. 5,000 to Rs. 6,000 after meeting all expenses like railway monthly ticket, rent for handcarts, crates etc.

Newcomers who want to become Dabbawala are initially hired on a salary, after evaluating their performance they are offered membership (shareholders) of thetrust and assigned to one of the groups. Each Dabbawala is guaranteed to receive amonthly income and employment for life. As there is no retirement age, he maywork as long as he is physically fit. To become profit sharing member of the trust,new Dabbawalas needs to pay a certain amount to the trust. This was Rs. 30,000 in2003.

How they operate and work as team :

33


34/51

This service is available in every working day and whenever the local trains run inMumbai & Suburban because it is their primary mode of transportation. TheDabbawalas deliver home-cooked meals to individuals (irrespective of their caste,creed or religion) at their working places (offices/factories) and return empty

boxes to customers houses or caterers. Every customer who avails himself theservice is given a aluminum container (called Dabba-contains 2 or 3 containers,often carrying rice, chapattis, curry and salad) with appropriate code painted onthe lid. The Dabbas are changed hands at least four or five timers before theyreach their destinations during the delivery process. The process runs as follows:

A Dabbawala picks up the tiffin box with cooked food from a house or caterer early morning (generally between 8:30 a.m. and 10:30 a.m.), then transports it bycycle or handcart to the nearest railway station. Then he hands it over to aMukadam who sorts it and arranges them in crates or trays, according to thedestination. Another Dabbawala then transports it in the suburban train vendor compartment to the railway station nearest to its destination where another picks itup and delivers it to the ultimate recipient by 12:30 p.m. After lunch, the Dabbasare picked up and return to the customers house or caterer in a reverse operation.

The food and the Dabba both belong to the customer. Even housewivesoccasionally send messages to their husbands in these Dabbas. This deliverysystem has been compared to a relay race.

The Dabbawalas have developed their unique coding system. The codes help eachDabbawala to identify and fulfill his responsibility. These codes are understood bythe Dabbawalas and no one else. The code is painted on the lid of the Dabba,

which indicates the originating address & station and the destination station &address. Their coding system is very interesting. They use colours and codemarkings to ensure faultless delivery. They use both alphabets and numbers toidentify Dabbawala, station, building and floor. For example, if the code on aDabba is P-BO-10 15/A/11, then P identifies the name of the Dabbawala,BO indicates Borivili (area) where the Dabba has to be collected from,10 represents the area, Nariman point, where the Dabba has to be delivered and15/A/11 stands for 15 th building, 11 th floor.

Dabbawalas ability to successfully run the service in a crowded city likeMumbai could be attributed to its geography and local train service. The trains runevery day in a year and there is very rarely any interruption in the service. Atmonsoon, due to heavy rain, when the rail tracks would get flooded then theservice is disturbed. Raghunath Medge, President of the trust said, Mumbaisgeography makes it unique, it is a longish city where residences are in the northand offices in the south, so it makes our work simple.

According to their version, they use the cheap public transport system which isadvantageous to them. Several groups are involved in this service, but their teamwork is unique and delivery almost flawless due to their effective co-ordination.

Even there is no mixing of vegetarian and non vegetarian Baddas on the same34


35/51

bicycle. Raghunath Medge claimed We generally make one mistake in twomonths. We cant afford to make mistakes to often or else we will be out of

business. And our employees understand this reality very well so they are alwaysvery caution.

Problems & Prospects :

The trust faces the cut-throat competition from the growth of fast food centers likePizza Hut, Mac Donalds etc. while there are thousands of die-hard customers,rapid urbanization, increasing personal transportation and availability of differentkinds of fast food have drawn a good chunk of the younger generation away fromthe home made food. But there is an increasing number of people who are healthconscious and feel that home cooked food suits their stomach and health. Evensome customers now send water along with their tiffins. Knowing this very issuethe trust do not bother about the competition. Today, the Dabbawala delivers themto offices. But Medge said that food from caterers is still a small segment of thetotal operation. Most people want to eat homemade food in the offices without the

bother of having to carry a cumbersome tiffin box. Six Sigma quality rating helpsthe organization streamline their delivery systems, eliminate errors and achieve acent percent accuracy. Around 8000 Dabbawalas deliver about 5,00,000 tiffing

boxes to factories and offices acroos Mumbai with high labour intensive and withalmost zero technology inputs. But they receive international recognition after 115years of glorious service. Every year their business grows by 25,000 to 30,000tiffin boxes. They lose a few customer too each year but are more thancompensated with the addition. Actually they grow annually by about 10%. Till

the time people will feel hungry their business will keep growing.

They have started advertising on Dabbas by putting stickers on them. This bringsin extra income. Mumbai Dabbawalas deliver mainly during day time. They arenot night bird. But India shifts to a 24 Hours X 7 Days work culture, the tiffin

boxess network would also work under the moon and stars.

Conclusion of Case Study :-

The concept of Dabbawala comes into picture in one of Indias big and busiestcities where people can enjoy the fresh homemade lunch every day. What a

35


36/51

wonderful service they provide. It is not just a service but a vocation. Their mainaim is customer satisfaction the trust shows how these illiterate or semiliterateDabbawalas have mastered the art of logistics management, supply chainmanagement, customer service, just-in-time management, team work and problemsolving. People cannot believe that uneducated people can provide such andefficient service. Even people of foreign countries (like U.K., Italy etc.) areamazed that uneducated Dabbawalas can carry out such type of business soaccurately. Actually the uneducated have an ability to memorize and retain moreas opposed to educated who are used to writing down everything. So they claimthat our head is our computer and Gandhi cap in the computer cover to protect itfrom the sun or rain. The white-capped, white-shirted Dabbawalas shot thelimelight when they were awarded the six sigma rating, but it was Prince Charlesmeeting with them in Mumbai in November,2003 that really helped them. He wasthe first celebrity who visited them. R. Megde said Many people talk about us,

but Prince Charles was the first famous person who met us. He encouraged us. Heis our friend.

Hard work and sincerity of Dabbawalas are the two main factors to reach suchlevels of efficiency with such an untrained work force. They got six sigma ratingof highest operational efficiency without using any paper work or computer.Thanks to their personal as well as group efficiency and dedication to their vocation.

CHAPTER-4

36


37/51

WAREHOUSING

37


38/51


39/51

Recent developments in marketing have also led to the development of warehouse-styleretail stores with extremely high ceilings where decorative shelving is replaced by tallheavy duty industrial racks, with the items ready for sale being placed in the bottom partsof the racks and the crated or palletized and wrapped inventory items being usually

placed in the top parts. In this way the same building is used both as a retail store and awarehouse.

Modern warehouses are also used at large by exporters/manufacturers as a point of developing retail outlets in a particular region or country. This concept reduces the endcost of the product to the consumer and thus enhance the production sale ratio.Warehousing is an age old concept which can be used as sharp tool by originalmanufacturers to reach out directly to consumers leaving aside or bypassing importers or any other middle agencies or person.

Internet impact

The internet has had an influence on warehouses too. Internet based stores do not require physical points of selling. However, warehouses are still required to store the goods.Since direct contact with customers means many small orders, this is a different situationwhere stores would be ordering large numbers of goods. Simply said, warehouses changefrom shipping large quantities of goods to shipping large numbers of small quantities of goods.

Having a large and complex supply chain containing many warehouses may be costly.Sometimes, it is beneficial to have one large warehouse per continent. This warehouseshould be located at a central point, where transport is available to all other destinations.At these continental hubs, goods have to be customized for different countries. For example, goods get a price ticket in the language of the country where it will go. Makingsmall adjustments to goods at a warehouse is called value added services.

Types of Warehouse Storage SystemsSome of the most common types of warehouse storage systems are:

Pallet rack: 39


40/51

Including selective, drive-in, drive-thru, double-deep, pushback, and gravityflow. Mezzanine:

Including structural rolls formed, rack supported, and shelf supported.

Cantilever Rack: Including structural and roll formed.

Industrial Shelving:

Including metal, steel, wire, and catwalk. Automated Storage and Retrieval System (ASRS):

Including vertical carousels, vertical lift modules, horizontal carousels, robotics,mini loads, and compact 3D.

40


41/5141


42/51

42


43/51

CHAPTER-5

FQAs

43


44/51

FQA s Why Safexpress?

Safexpress Indias Leading Logistics Company is renowned for its domain expertise andexperienced manpower in the LSCM sector. Safexpress can best understand your Logistics anddistribution requirements and can offer the most suitable Logistics model and solution to you.Safexpress has the largest network coverage across India traversing over 3,50,000 km. everyday covering over 550 locations through more than 750 routes operating 24 hours a day 365days a year .

What is the Network Strength of Safexpress?Safexpress-Indias leading Logistics Company, has more than 550 Locations across India in itsnetwork. Safexpress reaches these locations through its fleet of 3000 vehicles operating on morethan 1000 routes, 24 hours a day 365 days a year. All Safexpress vehicles have all-weather proof containers for safe transit. Safexpress also operates through Air to locations directly covered byflights and to all other locations on a multi modal basis.

Will Safexpress cater to my destination?Safexpress-Indias Leading Logistics Company, has network of more than 550 Locations acrossIndia. To check whether Safexpress caters to your destination, please check our 'Contact Us'page and click on Network.

How do I Contact Safexpress for Pick-up?Safexpress-Indias Leading Logistics Company, has offices across all industrial and commercial

towns and cities of India. To contact any one of them, please check our 'Contact Us' page andclick on your State to identify your city of origin, or click on the first alphabet of your destination tosee a list of destinations starting with the alphabet. Across India you could also contact our TollFree phone 1800 113 113 & you can also mail Corporate Customer Services Desk [email protected]

Does Safexpress handle both Domestic and InternationalConsignments?

Safexpress, Indias Leading Logistics Company today handles only Domestic cargo.

What are Safexpress Services?

44
mailto:[email protected]:[email protected]:[email protected]:[email protected]


45/51

To view our entire bouquet of services in Logistics and Supply Chain, please go to our 'Services'page. Here, you will find all our Services listed with complete explanations. For further queries or more customised solution, Please mail us at [email protected] or call us toll free 1800113 113.

What is ILM?Integrated Logistics Management is our 3PL Product that optimises your companys supply chain.First, we examine the linkages between your suppliers, producers, buyers, intermediaries andend users in order to identify time and cost inefficiencies. Next, we deploy our unique mix of localknow-how, global practices and cutting-edge technology to provide integrated supply chainsolutions. These range from specific services such as warehouse management, statutorycompliance and invoicing - to an entire gamut of third party logistics services .

Does Safexpress operate in Containers only?All the fleet of Safexpress is all-weather proof containers meeting global quality standards. Unlessspecifically required for a customised project Safexpress does not carry in open body vehicles.

What does Safexpress Carry?Almost every product manufactured, imported or sold in India can fall under our purview whichrequires to reach its destination in time, safely and conveniently. Barring goods contraband innature, explosives, Cash, jewellery, and inflammable material... Broadly major areas of business for Safexpress include IT hardware, Ready Made Garments,Pharmaceuticals, Electrical and Electronic goods, Automobile Components & Spares, Fabric andCloth, FMCG, and Non-Perishable Food Products among many other products belonging todiverse market segments.

What about Packaging?Safexpress principally does not handle packaging themselves. We can consult and provideneedful help and assistance but directly might not pack. We have SAFEBOX for our clients thatcomes in two convenient sizes: the 17x17x12" Safebox carries up to 20kgs of cargo; the16"x12x 9" Safebox carries up to 10kgs of air cargo. The robust design of the Safebox is further reinforced with internal insulation, which eliminates packaging costs. Theres another outstandingfeature built-in to the Safebox that covers an auto insurance for up to Rs. 5,000, absolutely free of cost.

What about Transit Risks?Safexpress works and carries on the philosophy of 'Custodians First Carriers Later. Wesincerely abide by our corporate philosophy on the subject. Safexpress has an all risks cover -Carriers Risk offer, which unburdens the customer of his worries of losses in transit. On minimalextra charge of Risk Charges, we cover your valuable shipment against all sorts of transit lossesincluding fire, flood, damage, accident, shortage, etc.

45
mailto:[email protected]:[email protected]:[email protected]:[email protected]


46/51

For more details please call our toll free phone 1800 113 113 or mail us [email protected]

Does Safexpress offer CFA Services?Yes, Safexpress Indias leading logistics company has a special product to offer. Corporate CFAservices under- ILM. Our corporate CFA is a very customised and scalable solution for Clientswho require variety of CFA services at one/many locations. Services range from sourcing,Warehousing ,Inventory Management, Despatch, Delivery and many other modules from which acustomer can pick his requirements. Most importantly our Turnaround Time (TAT) to set-up theinfrastructure is very low and also it is cost effective to the entire Supply Chain.

What about Warehousing Risks?As mentioned in the previous answer, Safexpress SolutionILM takes care of everything,including warehousing insurance. If the customer requires it, the customer gets it.

What kind of Material Handling Equipment are used atSafexpress' Hubs?

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

How do I locate my material?Safexpress.com offers you online tracking of your consignment. Simply punch in your way billnumber and the site informs you the status of your Consignments immediately. You maydownload a copy of epod (Electronic Proof of Delivery) for your reference.

What are the statutory obligations required for shipments?

46
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


47/51

Statutory obligations in India vary from state to state. For a check on obligations like documents,form/permits, octroi /entry tax applicability - please visit our online logistics planning tool- VirtualCargo. By simply selecting your booking origin and destination along with the planned date of despatch, it tells you all the obligations involved. For further clarity, please call us toll free 1800113 113 and customer services desk will help you. You can also mail us at

[email protected]

What is virtual cargo?Virtual Cargo is a Safexpress' gift to Logisticians. Its an online logistics distribution planning toolfor clients. By Simply selecting your origin and destination along with planned date of despatch, Ittells you all the obligations involved like number of copies of documents /invoice required, formsor permits required, octroi or entry tax applicability. It confirms you the expected day/date of arrival at destination by various modes, so as to plan a pre/postponement of your despatch torealign with your supply chain. It also confirms you the distance your cargo will travel and thecheck posts itll pass through in its transit.

How can I become a Privileged Member?Safexpress offers special attention and offers value added services to its large volume customers.For these customers our online lounge has been named as Priviledged Members. Through alogin/password access a Priviledged Member gets access to a host of services including MultipleWaybill Tracking, Tracking by Invoice, various MIS reports on Despatch and Receipt of consignments, Service Performance Analysis of Safexpress month on month. We provide directaccess for our Priviledged Member to his account manager from safexpress to respond to directissues.

A host of other add-on and special offers are being added for our Priviledged Members.

What about Reverse Logistics?Safexpress has special arrangements to offer project based Reverse Logistics assignments. For detailed discussions, please call us toll free 1800 113 113 or send us mail [email protected]

Does Safexpress carry Liquid Cargo?Safexpress principally does not carry liquid cargo on consolidation basis. However, items likepharmaceuticals, adhesives are handled by Safexpress. For special project please speak with our Customer Service Officers on toll free number 1800 113 113 or email us [email protected]

47
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


48/51

What is Safexpress' cut off time for pick-ups?Cut off time for pick-ups vary from origin to origin depending on connections. Please check withour customer services officer at the origin station for exact cut off time for pick up and he/she willconfirm it to you. Our toll free number is 1800 113 113.

Does Safexpress deliver on a Sunday? If yes, are there anyextra charges?

Safexpress operates its operations function 24 hrs a day 365 days a year. Safexpress not onlyoffers delivery services on Sunday but also does not charge anything extra for Sunday delivery.

For all other queries / questions, please mail us at [email protected]

CHAPTER-6

CONCLUSION

48
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


49/51


50/51

CHAPTER-7

BIBLIOGRAPHY

50


51/51

BIBLIOGRAPHY

SUPPLY CHAIN MANAGEMENT L.C. JHAMB

INTERNATIONAL LOGISTICS PIERRE DAVID

SUPPLY CHAIN MANAGEMENT SUNIL CHOPRABROCHURE OF SAFEXPRESS

WEBSITES

www.logisticworld.comwww.safexpress.comwww.google.com
http://www.logisticworld.com/http://www.safexpress.com/http://www.google.com/http://www.logisticworld.com/http://www.safexpress.com/http://www.google.com/

15990360 project on safexpress warehousing and supply chain management[1]

Documents