logistic management modified

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A

STUDY ON

LOGISTICS MANAGEMENT

WITH REFERENCE TO

RELIANCE RETAIL Ltd.

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

.Mrs.B.BILLA

ROLL.NO (11C91E0005)

UNDER THE GUIDANCE OF

Mr.ROOPA VENI

HOLY MARY INSTITUTE OF ENGINEERING &SCIENCES

(Approved by AICTE, Affiliated to JNTU University)

KUKATPALLY, HYDERABAD


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DECLARATION

I hereby declare that this Project Report titled LOGISTICS MANAGEMENT submitted by me to the Department

of Business Management, JNTU , Hyderabad, is a bonafide work undertaken by me and it is not submitted to any

other University or Institution for the award of any degree diploma/ certificate or published any time before.

Name and Address of the Student Signature of the Student

BILLA.SRUTHI


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ANNEXUREII

CERTIFICATION

This is to certify that the Project Report title Logistics Management submitted in partial fulfillment for the award of

MBA Programme of Department of Business Management, JNTU. Hyderabad, was carried out by BILLA.SRUTHI

under my guidance. This has not been submitted to any other University or Institution for the award of any

degree/diploma/certificate.

Name and address of the Guide Signature of the Guider

Head of the Department (M.B.A) Principal

Project Guide


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Abstract

L o g i s t i c M a n a g e m e n t i s a c r o s s f u n c t i o n a l a p p r o a c h t o m a n a g i n g t h e m o v e m e n t o f

r a w m a t e r i a l s i n t o a n o r g a n i s a t i o n , c e r t a i n a s p e c t s o f t h e i n t e r n a l p r o c e s s i n g o f

m a t e r i a l s i n t o f i n i s h e d g o o d s a n d t h e n t h e m o v e m e n t o f t h e f i n i s h e d g o o d s o u t o f t h e

o r g a n i s a t i o n t o w a r d s t h e e n d c o n s u m e r . A s o r g a n i s a t i o n s t r i v e f o c u s o n c o r e

c o m p e t e n c i e s a n d b e c o m i n g m o r e f l e x i b l e t h e y h a v e r e d u c e d o w n e r s h i p o f r a w

m a t e r i a l s . T h e s e f u n c t i o n s a r e i n c r e a s i n g l y o u t s o u r c e d t o o t h e r e n t i t l e s t h a t c a n

p e r f o r m t h e a c t i v i t i e s b e t t e r o r l o w e r c o s t e f f e c t i v e l y t h e e f f e c t i s t o i n c r e a s e t h e

n u m b e r o f o r g a n i s a t i o n s i n v o l v e d i n s a t i s f y i n g t h e c u s t o m e r d e m a n d w h i l e r e d u c i n g

S u p p l y C h a i n O p e r a t i o n s . L e s s c o n t r o l a n d m o r e l o g i s t i c s p a r t n e r s l e d t o t h e c r e a t i o n

o f L o g i s t i c s m a n a g e m e n t .

T h e p u r p o s e o f L o g i s t i c s m a n a g e m e n t i s t o i m p r o v e t r u s t a n d c o l l a b o r a t i o n a m o n g

s u p p l i e r s a n d c u s t o m e r i . e . , a m o n g s u p p l y c h a i n p a r t n e r s o f t h e o r g a n i s a t i o n t h u s

i m p r o v i n g i n v e n t o r y v i s i b i l i t y a n d i m p r o v i n g i n v e n t o r y v e l o c i t y .

L o g i s t i c s M a n a g e m e n t s p a n s a l l m o v e m e n t a n d s t o r a g e o f r a w m a t e r i a l s , w o r k

i n p r o g r e s s i n v e n t o r y a n d f i n i s h e d g o o d s f r o m p o i n t o f o r i g i n t o p o i n t o f

c o n s u m p t i o n .


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ACKNOWLEDGEMENT

I a m d e e p l y i n d e b t e d t o m y H e a d o f t h e d e p a r t m e n t a n d g u i d e M r s . R O O P A V E N I

w h o h a v e b e e n a g r e a t s o u r c e o f s t r e n g t h a n d i n s p i r a t i o n a t e v e r y s t a g e o f p r o j e c t

w o r k .

I a m e x t r e m e l y t h a n k i n g t o M r . R a d h a K r i s h n a , D e p u t y G e n e r a l M a n a g e r . ( H u m a n

R e s o u r c e s ) a n d M r . N a r e s h N a t a r a j a n D C m a n a g e r , K o n d l a k o i , M r . M a h a d e v u d u o f

I n v e n t o r y M a n a g e m e n t a n d M r . S a t h i s h o f I n b o u n d o p e r a t i o n s o f R e l i a n c e R e t a i l L t d

a n d a l s o o t h e r s t a f f m e m b e r s o f R e l i a n c e R e t a i l l t d , w i t h o u t t h e i r k i n d c o - o p e r a t i o n

a n d h e l p t h e p r o j e c t c o u l d n o t h a v e b e e n s u c c e s s f u l .

(BILLA.SRUTHI)


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Table of Contents Page No.

Chapter 1: Introduction

Introduction 1

Objectives 2

Methodology 3

Scope 4

Chapter 2: Review of Literature

Introduction 6 Logistics Problems 14 Suggestions to improve 15

Introduction to retail industry 17 Organized retailing in India 24

Chapter 3: The Company

Introduction and History 29 Facility Locations 31 Products and brands 33 Commitments of the company 37 Milestones 38

Chapter 4: Data Presentation and Analysis

Introduction 42 Inbound Logistics 48 Outbound Logistic 60 Inventory Management 73

Chapter 5: Conclusions And Limitations

Conclusions 81 Limitations 82 Suggestions 83


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Chapter -1

Introduction

Research Problem:

Retailing industry in India is glowing day by day and Logistics management, which is an integration part of supply

chain management is essential to meet the customer demand and necessities, the customer satisfaction can be

attained with help of effective Logistic solutions, which includes mainly Inbound logistics, Outbound Logistics and

vehicle scheduling routing.

Need for Study:

In order to achieve the best of all functions of the management we need better Logistic Management and companies

are spending 10 to 35 percent on their logistic cost of turnover, the project will be contributing to optimum

utilization of resources.

Objectives of Logistics Management :

Customer Satisfaction

Inventory Management

Availability of product

Reduce Wastage


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METHODOLOGY

A brief outlet of methodology is given under

Sample for study

The present study and observations is collected from one of the distribution center of Reliance Fresh at Kondlakoi,

Hyderabad.

Sources for data collection

Primary Data Source

1. Personal interview with staff

2. Personal observations in organisation

3. Formal and informal talks with executives

Secondary data

1. Company Profile2. Manual and printed records of the distribution center3. Text books, Journals, Industrial reports and through internet

SCOPE of the study

This study includes studying the theoretical aspects of logistic management.


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The study was confined to Hyderabad, Kondlakoi Distribution center only.

The study was conducted during 17 th December 2007 to 31st January 2008.

Chapter -2

Review Of Literature

Introduction

SUPPLY CHAIN MANAGEMENT (SCM) is a systematic approach with which we maintain the entire flow of

information, materials and services, A Supply Chain is a network of suppliers, manufacturing, assembly,

distribution and logistics facilities that perform the function of procurement of materials transformation of these

materials into intermediate and finished products and the distribution of these products to customers.

The major decisions are

Locations of supply chain facilities

The geographic location of distribution facilities, stocking points and sourcing points is an important

strategic planning step in logistics management. Once the size, location and number of Supply chain facilities are

determined so are possible paths by which product flows through to the final customer. These decisions have a great

significance since they determine the way in which customer markets are accessed and they have substantial impact

on revenues, cost and service levels.

Procurement Planning


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Procurement planning takes an unbiased forecast of expected sales and performs a number of computations to

obtain a corresponding set of part requirements. It is a critical process in the determination of companys

serviceability and inventory. This function becomes an interesting optimization problem if there is constrained

supply uncertain demand.

Distribution facilities and Planning

This involves determining the number, location, capacity, and layout of an optimal distribution network to maximize

customer service levels given demand distribution and other supply chain parameters.

Transportation Planning

This involves selecting the best mode of logistics by trading off cost using a mode with inventory costs

Geographic locations play an important role in the problem. Other decision includes designing a transporting

network for optimizing product flows from plants or other sources to distribution centers to final customer.

Vehicle scheduling and routing and fleet management are important tactical and operational decisions in supply

chain networks and the goal is to survey and compute the best practices in the area and create a tool that can be

deployed in decision support for fleet management and routing and scheduling of vehicles.

Inventory Optimizations

Inventories exists in every stage of Logistics with out inventories we cannot assume logistics, which

include Raw Materials, Semi finished or work in progress and fished goods the primary purpose of inventories is to

buffer against uncertainties and to maintain acceptable customer service.

Since inventory is expensive, maintaining optimal inventory levels in supply chain stocking points is an

important problem. Economic order quantity levels, statistical inventory policies and other concepts related to

inventory management is dealt here in this context.

SCM has two major faces to it, front end and back end and the back end essentially involves,

1. Procurement and Manufacturing

2. Logistics and Distribution


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The front-end face where IT (information technology) and ITES (Internet technologies and Electronic

Commerce) play a vital role. This phase involves processing and use of information to facilitate and optimize the

back end operations.

Definitions

Various definitions are given to the logistics management; some of them are as follows

The process of strategically managing the procurement, movement and storage of materials, parts and

finished inventory and the related information flows through the organisation and its marketing channels in

such way that current and future profitability are maximized: Raghuram.G.

The study and Management of goods and services flows and associated information that set these in

motion. B.S, Sahay

Strategically managing the procurement and movement of goods and storage inventory in all forms.

Lambert.

A widespread idea prevails that logistics is movement of goods. That is a narrow concept Logis tics is

much more and much wider than mere physical handling of goods. Logistics involves several other

functions such as Purchasing, Plant

location, order management etc.,

We can conclude Logistics Management as


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Logistics is the delivery of the required goods, at required place in required time in required state to

required person efficiently.

Logistic Management is a cross functional approach to managing the movement of raw materials into an

organisation, certain aspects of the internal processing of materials into finished goods and then the movement of the

finished goods out of the organisation towards the end consumer. As organisation strive focus on core

competencies and becoming more flexible they have reduced ownership of raw materials. These functions are

increasingly outsourced to other entitles that can perform the activities better or lower cost effectively the effect is to

increase the number of organisations involved in satisfying the customer demand while reducing Supply Chain

Operations. Less control and more logistics partners led to the creation ofLogistics management

.Importance of logistics

Logistics is the one important function in business today, No marketing, Manufacturing or other functional

executions can succeed without logistics support for companies, 10 to 35 per cent of gross sales are logistic cost,

depending on business geography and weightvolume ratio.

Logistics is comparatively new term but not the operation. Logistics has existed since the

beginning of civilisation raw material and finished products had always to be moved, though on a small scale.

Things began changing with the advance in transportation. Population began moving from rural to urban and

business centers. No longer did people live near. Production centers or production take place near residence centers.

The geographical distance between the facility and production centers and the consumption point increased and

LOGISTICSgained importance. Since the early 1990s the business scene has changed, the globalization the free

market and the competition has required that the customer gets the right material, at right place and the right

condition at appropriate (lower) price.

Another dimension oflogistics is reverse logistics usually called as rev log goods return

from the consumer point to the original supply point for various reasons. Bad delivery over-supply, damage, expiry,

failing inspection test, found in improper packing, with out necessary information like weight, volume, price, expiry,


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and goods unsold etc., are some instances where the material traverses back, that is reverse logistics. The process

includes the returning of the raw materials to original suppliers on the said reasons.

The material that has to come back to the original point or to the original suppliers has also to

handle effectively and efficiently. The best solution for this is to maintain separate team for Rev Log System

that will give a more edge.

T h e m a j o r d e c i s i o n s i n v o l v e d i n L o g i s t i c M a n a g e m e n t a r e a s f o l l o w s

Warehouse location, Flow of Materials ( In bound-Out bound), Protective packaging , Inventory Management ,

Demand forecasting and order Management ,Selection of transportation mode and Vehicle Scheduling .

Problems involved in Logistics Management

Distribution: Network configuration: Number and location of suppliers, Distribution centers, warehouses

and customers.

Distribution strategy: centralized versus decentralized, direct shipment and third party transportation.

Information integration: Logistics share valuable information including demand forecasting inventories,

transportation etc.,

Inventory Management: quantity and locations of inventory.

Suggestions to improve the Logistics

Logistics can be handled in a better way; looking at the trends today we can classify it into 4 concepts,


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o Train, develop and maintain a team of logistics experts in the Company, and make this as a part of strategy

developers.

o Develop and make suppliers of materials and services aware to Work and respond as a link of the

companys logistics.

o Information flow is the crux of efficient and effective logistics, Make logistics as an IT- based operations.

o Set a goal of logistics that must be customer satisfaction rather than marketing mens target fulfilling

demands etc.,

INDUSTRY PROFILE

Introduction

India is now on the radar of global retailers. Accelerated development of retailing industry in the country and

building brand value of domestic products is essential not only for marketing consumer products more efficiently,

but also for the development of retailing industry.

India has one of the largest numbers of retail outlets in the world of the 12 million retail outlets near 4 million sell

food and related product, However organized retail sector accounts for only 4 percent of the total market offering

high growth potential in this segment.

A survey by ASSOCHAM, which represents that, the retail trade is going to $ 637 billion by 2015 as it is standing at

$ 330 billion at the end of the November 2007; this shows the potential of the sector.

Some of the highlighted points of the survey


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An emerging sector with huge potential, trying cement its place in Indian market India is no. 1 market so

far as retail market investment is concerned.

The major employment provider after agriculture, the future is bright as Indias 50 plus percent populations

have a very much disposable income.

There will be a threat to small merchants and street vendors.

The malpractices of the merchants are going to be abolished and role of middlemen is going to be

diminished specially in the agriculture sector.

In agriculture the wastage will be decreased which was estimated at approximation of Rs24000 Cr. which

was estimated by 2007 the national planning commission.

The transparency of transactions and increase in the tax revenues to government will be there

FDI at present 51% may increase .India is going to be an investment hub.

The proposed licensed system for retail is a bad idea and especially in the presence of corruption.

The Supply chain posits that inflation in food prices can come down and former income can go up.

The retail chain is going to create more jobs for capable candidates, commerce graduates and for

management students.

India has topped at IBGRDI stand for International Business and Global Retail Development Index for the third

consecutive year, maintaining position as the most attractive market for retail investment.

The Indian retail market, which is the largest retail destination globally, according to Industry estimates is

estimated to from US $ 330 billion in 2007 to US$ 637 billion by 2015. Simultaneously, organized retail, which

presently accounts for 4 percent of the total market, is likely to increase its share to 22 percent by 2010.


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Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian

retail is expanding at a rapid pace. Mall space, from a meager one million square feet in 2002, is expected to touch

40 million square feet by end of 2008 estimated 60 million square feet by the end of 2009 Says Jones Lang LaSalles

third annual retailer survey Asia.

Similarly another report by Image retail estimates the number of operational malls to more than

double to over 310malls with million square feet by 2010, with 750malls with 80 million square feet of space.

The many companies are looking forward to enter into retail business in India by the domestic as

well as MNC companies. The idea is small but the implementation is tough enough.

Reliance retail is going to ahead with plans worth of an investment of US$ 3.77 billion for setting up 205

more stores.

Adithya Birla Group took over Trinethra Super market, Sumanth Sinha, Ceo of Birla exposed about

investment plans, which will likely to touch rs10000 Cr.

Spencers is also planning to set up 500 more stores by June 2008 with an investment of nearly US$

125.89 million.

Hyper city is planning to set up 250 express city stores in the convenience store format across the country

in the next year.

Wall-mart the world biggest retailer is merged with Bharathi group they are planning to enter into by end

of 2008.

TATA group was declared its decision in 2007. Tata planned to come out with brand name CROMA,

Offering consumers choices in home entertainment, small appliances, while

Croma is set to expand all over the country with at least 100 stores by 2011.,with

a philosophy of'We help you buy'.


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DLFplans to invest US$4.02 billion over four years to develop about 20 large malls across country.

Big bazaar, Spencers, Magna of Pantaloons and other organized retailers are planning to expand their

markets as competition is increasing they are extending their stores to semi urban areas.

ITC has started its retailing business with brand name CHOUPAL.

Consequently a number of foreign brands including French connection, Sanrio of Hello Kitty fame, Calvin Klein

among others have already lined up for permission to infuse foreign direct investment through the single brand

window.

By all means retailing is an industry that glowing and booming now and many opportunities are there for

the companies for make their mark and more opportunities will be arisen for qualified candidates for employment.

With this competition between the marketers it is the common man as a customer and former is going to receive

the benefits as role of the middlemen is going to abolish or role of him is decreased.

The Growth of Retail Companies in India is facilitated by certain factors

le classes with an increased purchasing power

Organised retailing in India


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The recent years have witnessed rapid transformation and vigorous profits in

Indian retail stores across various categories. This can be contemplated as a result of the changing attitude of Indian

consumers and their overwhelming acceptance to modern retail formats. Asian markets witness a shift in trend from

traditional retailing to organized retailing driven by the liberalizations on Foreign Direct Investments. For example,

in China there was a drastic structural development after FDI was permitted in retailing. India has entered a stage of

positive economic development, which requires liberalization of the retail market to gain a significant enhancement.

India is on the radar screen in the retail world and global retailers and at their wings seeking entry into the

Indian retail market. The market is growing at a steady rate of 11-12 percent and accounts for around 10 percent of

the countries GDP. The inherent attractiveness of this segment lures retail giants and investments are likely to

skyrocket with an estimate of Rs 20-25 billion in the next 2-3 years, and over Rs 200 billion by end of 2010. Indian

retail market is considered to be the second largest in the world in terms of growth potential.

A vast majority of India's young population favors branded garments. With the influence of visual media,

urban consumer trends have spread across the rural areas also. The shopping spree of the young Indians for clothing,

favorable income demographics, increasing population of young people joining the workforce with considerably

higher disposable income, has unleashed new possibilities for retail growth even in the rural areas. Thus, 85% of the

retail boom that was focused only in the metros has started to infiltrate towards smaller cities and towns. Tier-II

cities are already receiving focused attention of retailers and the other smaller towns and even villages are likely to

join in the coming years. This is a positive trend, and the contribution of these tier-II cities to total organized

retailing sales is expected to grow to 20-25%.

Challenges facing the Organized Retail Industry:

Despite the rosy hopes, some facts have to be considered to positively initiate the retail

momentum and ensure its sustained growth. The major constraint of the organized retail market in India is the

competition from the un-organized sector. Traditional retailing has been deep rooted in India for the past few

centuries and enjoys the benefits of low cost structure, mostly owner-operated, therein resulting in less labor costs

and little or no taxes to pay. Consumer familiarity with the traditional formats for generations is the greatest


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advantage to the un-organized sector. On the contrary, organized sector have big expenses like higher labor costs,

social security to employees, bigger premises, and taxes to meet.

Availability and cost of retail space is one major area where Government intervention is

necessary. Liberalizing policy guidelines for FDI needs focus as well. Proper training facilities for meeting the

increasing requirements of workers in the sector would need the attention of both Government and the industry.

Competition for experienced personnel would lead to belligerence between retailers and higher rates of attrition,

especially during the phase of accelerated growth of the retail industry. The process of avoiding middlemen and

providing increased income to farmers through direct procurement by retail chains need the attention of policy

makers. Taking care of supply chain management, mass procurement arrangements and inventory management are

areas that need the focus of entrepreneurs.

Chapter -3

COMPANY PROFILE

Reliance at a glance

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with

businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 27 billion. The

flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector

company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance . Starting with

textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fiber

intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully

integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing,

petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles and retail.


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Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber producer in the world

and among the top five to ten producers in the world in major petrochemical products.

The Group exports products in excess of US$ 15 billion to more than 100 countries in the world. There are more

than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited

(including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial

Infrastructure Limited.

Facility Locations

Reliance Industries Limited operates world-class manufacturing facilities across the country at Naroda, Patalganga,

Hazira, Jamnagar, Kurkumbh, Allahabad, Barabanki, Baulpur, Gandhar, Hoshiarpur, Nagothane, Nagpur, Silvassa

and Vadodara.

The Naroda facility, near Ahmedabad was commissioned in 1966. The synthetic textiles and fabrics manufacturing

facility at The textile plant is spread over 150-acre site.

The Patalganga complex, near Mumbai, has polyester, fiber intermediates which was established in 1988 and is,

spread over 200 acres of land. The Hazira complex, near Surat, was established in 1991 and is, spread over 700acres

of land.

The Jamnagar complex has a petroleum refinery was commissioned in 1999. It is spread over 7400 acres of land.

The Allahabad complex is spread over acres.

The Barabanki complex, near Lucknow was commissioned in 1987 It is spread over 106 acres of land.

The Baulpur complex, was commissioned in 1987 It is spread over 227 acres of land.

The Vadodara Manufacturing Complex, an integrated petrochemical complex located at Vadodara and spreads over

1263 acres. It has naphtha cracker and 15 downstream plants in operation for the manufacture of polymers, fibers

and fiber intermediates and chemicals.
http://www.ril.com/html/aboutus/manufact_naroda.htmlhttp://www.ril.com/html/aboutus/manufact_patalganga.htmlhttp://www.ril.com/html/aboutus/manufact_hazira.htmlhttp://www.ril.com/html/aboutus/manufact_jamnagar.htmlhttp://www.ril.com/html/aboutus/manufact_barabanki.htmlhttp://www.ril.com/html/aboutus/manufact_baulpur.htmlhttp://www.ril.com/html/aboutus/manufact_vadodara.htmlhttp://www.ril.com/html/aboutus/manufact_vadodara.htmlhttp://www.ril.com/html/aboutus/manufact_baulpur.htmlhttp://www.ril.com/html/aboutus/manufact_barabanki.htmlhttp://www.ril.com/html/aboutus/manufact_jamnagar.htmlhttp://www.ril.com/html/aboutus/manufact_hazira.htmlhttp://www.ril.com/html/aboutus/manufact_patalganga.htmlhttp://www.ril.com/html/aboutus/manufact_naroda.html


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P r o d u c t s & B r a n d s o f t h e c o m p a n y

T h e C o m p a n y e x p a n d e d i n t o t e x t i l e s i n 1 9 7 5 . S i n c e i t s i n i t i a l p u b l i c o f f e r i n g

i n 1 9 7 7 , t h e C o m p a n y h a s e x p a n d e d r a p i d l y a n d i n t e g r a t e d b a c k w a r d s i n t o o t h e r

i n d u s t r y s e c t o r s , m o s t n o t a b l y t h e p r o d u c t i o n o f p e t r o c h e m i c a l s a n d t h e r e f i n i n g o f

c r u d e o i l .

T h e C o m p a n y n o w h a s o p e r a t i o n s t h a t s p a n f r o m t h e e x p l o r a t i o n a n d p r o d u c t i o n o f

o i l a n d g a s t o t h e m a n u f a c t u r e o f p e t r o l e u m p r o d u c t s , p o l y e s t e r p r o d u c t s , p o l y e s t e r

i n t e r m e d i a t e s , p l a s t i c s , p o l y m e r i n t e r m e d i a t e s , c h e m i c a l s a n d s y n t h e t i c t e x t i l e s a n d

f a b r i c s .

T h e C o m p a n y f r o m t i m e t o t i m e s e e k s t o f u r t h e r d i v e r s i f y i n t o o t h e r

i n d u s t r i e s . I n J a n u a r y 2 0 0 6 , t h e C o m p a n y a p p r o v e d a p l a n t o e s t a b l i s h a r e t a i l

b u s i n e s s t h r o u g h a s u b s i d i a r y R e l i a nc e R e t a i l L i m i t e d t h a t w i l l o p e r a t e , a m o n g o t h e r

t h i n g s , s u p e r m a r k e t s , c o n v e n i e n c e s t o r e s a n d s p e c i a l t y s t o r e s a c r o s s I n d i a . T h e

C o m p a n y a p p r o v e d i n i t i a l e x p e n d i t u r e o f U S $ 7 5 0 m i l l i o n t o f u n d t h e i n i t i a l s t a g e s

o f t h i s p l a n .

T h e C o m p a n y ' s s u b s i d i a r y R e l i a n c e I n f r a s t r u c t u r e L t d . i s c u r r e n t l y

e s t a b l i s h i n g i n f r a s t r u c t u r e f a c i l i t i e s s u c h a s r o a d s a n d b u i l d i n g s f o r t h e p r o p o s e d

S p e c i a l E c o n o m i c Z o n e ( S E Z ) a t J a m n a g a r , G u j a r a t .

T h e C o m p a n y ' s m a j o r p r o d u c t s a n d b r a n d s , f r o m o i l a n d g a s t o t e x t i l e s a r e

t i g h t l y i n t e g r a t e d a n d b e n e f i t f r o m s y n e r g i e s a c r o s s t h e C o m p a n y . C e n t r a l t o t h e

C o m p a n y ' s o p e r a t i o n s i s i t s v e r t i c a l b a c k w a r d i n t e g r a t i o n s t r a t e g y ; r a w m a t e r i a l s

s u c h a s P T A , M E G , e t h y l e n e , p r o p y l e n e a n d n o r m a l p a r a f f i n t h a t w e r e p r e v i o u s l y

i m p o r t e d a t a h i g h e r c o s t a n d s u b j e c t t o i m p o r t d u t i e s a r e n o w s o u r c e d f r o m w i t h i n

t h e C o m p a n y . T h i s h a s h a d a p o s i t i v e e f f e c t o n t h e C o m p a n y ' s o p e r a t i n g m a r g i n s a n d

i n t e r e s t c o s t s a n d d e c r e a s e d t h e C o m p a n y ' s e x p o s u r e t o t h e c y c l i c a l i t y o f m a r k e t s


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a n d r a w m a t e r i a l p r i c e s . T h e C o m p a n y b e l i e v e s t h a t t h i s s t r a t e g y i s a l s o i m p o r t a n t i n

m a i n t a i n i n g a d o m e s t i c m a r k e t l e a d e r s h i p p o s i t i o n i n i t s m a j o r p r o d u c t l i n e s a n d i n

p r o v i d i n g a c o m p e t i t i v e a d v a n t a g e .

The Company's operations can be classified into three segments namely:

Petroleum Refining and Marketing business

Petrochemicals business

Others (including Crude Oil and Natural Gas Exploration & Production business.

The Company's refinery at Jamnagar is the third largest refinery at a single location in the world.

The Company is:

The world's largest producer of Polyester Fibre and Yarn.

4th largest producer of Paraxylene (PX).

5th largest producer of Purified Terepthalic Acid (PTA).

7th largest producer of Polypropylene (PP).

Fortune Magazine ranked the company 417 in the year 2004, 342 in 2005 and placed at 269 in 2006 among

world top 500 companies the company.

Reliance is the company among the top 25 climbers for the second year in succession.

Commitments of the Company

Quality

Research & Development

Health, Safety & Environment

Human Resource Development

Energy Conservation


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Corporate Citizenship

Reliance believes that any business conduct can be ethical only when it rests on the nine core values of Honesty,Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring.

The major milestones

2007

Reliance Retail entered the Organised retail market in India with the launch of its convenience store format

under the brand name of Reliance Fresh.

2004

The Board of Directors of Reliance Industries Limited approved the buyback of its fully paid up equity

shares of Rs.10 each, at a price not exceeding Rs 570 per share, payable in cash, up to an aggregate amount

not exceeding Rs 2,999 crore. This amount represents the limit of 10% of the total paid up equity share

capital and free reserves of the Company as on March 31, 2004.

2002

Reliance Infocomm to launch various telecom services on 28th December - beginning with Gujarat,

1996

First corporate in Asia to issue 50 and 100 years bond in US debt market


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1992

Reliance commenced the production of High Density Polyethylene (HDPE) at Hazira.

1977

Reliance went public with IPO - Dhirubhai Ambani introduced equity cult in India, a new model of

business leadership from a base of the broadest public shareholding

The Head office and corporate office are situated at

Corporate Office:

Reliance Industries Limited

Makers Chambers - IV,

Nariman Point,

Mumbai 400 021.

India.

Tel : 91-22-2278 5000

Registered Office:

Reliance Industries Limited

Makers Chambers - IV,

Nariman Point,

Mumbai 400 021.

India.

Tel : 91-22-2278 5000


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Chapter4

DATA ANALYSIS

Fresh

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is

aggressively working on introducing a pan-India network of retail outlets in multiple formats. A world class

shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added

services and above all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better

returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity,

will be an integral feature of this project. By creating value at all levels, reliance will actively endeavor to contribute

to India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through

multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and

supplier.


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Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is aggressively

working on introducing a pan-India network of retail outlets in multiple formats.

A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique

value-added services and above all, unmatched customer experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better

returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity,

will be an integral feature of this project. By creating value at all levels, reliance will actively endeavor to contribute

to India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through

multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and

supplier.

Logistics Management at Reliance fresh, Andhra pradesh

Reliance is having 46 retail stores in twin-cities, 4 stores each in Vijayawada, Guntur and Warangal and 9

stores at Visakhapatnam. The Products are supplied to the stores through Distribution centers or stocking centers

They are having Five Distribution centers (ware houses) or stocking points in Andhra pradesh. They are

located, three distribution centers at Hyderabad, one at Vijayawada and the other is at Visakhapatnam. The materials

to twin cities and Warangal are supplied through the same distribution centers located at Hyderabad. Products to

Vijayawada and Guntur are supplied through Vijayawada distribution centers, and materials to Visakhapatnam and

the stores which are in its periphery are supplied from Vizag DC.

The three Distribution Centers in twin cities are situated each one at Uppal, Industrial area, Kondlakoi

village and Kondlakoi main road near Medchal, R.R Dist. The DCs at Uppal and Kondlakoi main road are called as

dry DC and the Distribution center at Kondlakoi village is called as wet DC as all the vegetables, fruits, ice creams


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and the products, which require cold storage, are maintained there. Processed food, staples beverages etc are

maintained at the other DC at Kondlakoi, main road and in Uppal DC all non-processed food is stored.

The two distribution centers at Kondlakoi are located as the facility matching the following requirements.

The lactations are hygienic and tending to promote or preserve health as they are away from city.

Cost benefit|: The cost, comparatively is low as the ware houses are located away from the city nearly

25 kms from the central city.

The workers are having less flexibility to change from the work to another work, so the retention of the

workers is easier.

Municipal restrictions: There will not be any restriction for the transportation vehicles as the many

plants and other warehouses of vendors are situated near by places

Less pollution: as the distribution centers are storing processed food and other materials like vegetables

the freshness should be carried till it reaches to the customers.

Reliance fresh has classified its products into 5 categories, they are

FMCG (fast moving consumer goods)

DSD (direct store delivery) material

Vegetables and fruits

Processed food and beverages

Non-processed food and dairy

At Uppal DC the company keeps all the Non processed food, all its Vegetables, fruits etc which require

special cold-chain maintenance are kept at Kondlakoi, village the DC called as WET DC and all the processed food


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and beverages are kept at Kondlakoi main road DC and the Distribution Center is called as DRY DC. The study is

carried out at DRY DC, Kondlakoi that is about 35000 sft. The Employees working here 105, out of them 13 are of

Reliance and remaining are called as 3PL third party logistics, all pickers, packers movers are included in this. The

staff at Reliance Distribution center is working in Shifts.

In Bound logistics

Inbound logistics is not the only receiving the stocks from vendors it includes all the planning and scheduling and

other activities. It starts with procuring the material from vendors. Reliance has local vendors as well as out side

vendors. Though the vendors are from different states they have their own supply chain partners like C & F agents,

Super distributors etc. Whatsoever the vendors are supplying through local agents or from out of the state it does not

matter to Reliance, as the lead-time is pre defined.

The lead-time, terms and conditions of supply and other shipping conditions etc., will be made it clear at the time of

the agreement with the higher authorities during the negotiations with the vendors. In general the lead for the local

vendors is 1-2 days, and the vendors out side the state is 4-5 days. No information, about the stocks in transit is

known to in bound team.

The central procurement team at Mumbai will raise Po (purchase order) Based on the Category confirmation. The

category team is a part of central replenishment team, is from sales side. It is the team, which coordinates with

vendor. The Purchase order is raised at Mumbai to the vendors automatically and it will sent to the vendor through

mail or fax, the team will follow up with the vendors and will enquire regarding PO, if the vendor is not received the

Purchase order then the In-bound will sent a copy through the mail.

Vendor will call up directly to DC ASNAdvance Shipment Note team for appointment to delivery the material, as

soon ASN team will get the PO number from vendor, ASN team will check the PO details as such as articles,

quantity etc, for the Po and accordingly appointment will be given to the vendor.

Advance shipment team will create an inbound in SAP for the PO; the description of SKUs (stock keeping units)

and quantity, after that inbound delivery will be created the same will be intimated to vendor


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On the physical receipt of the material at Dc, the number of SKUs means the quantity, manufacturing, expiry date

etc., will be checked before accepting the material, after unloading the material, GRN goods receiving note process

starts In which EAN(European article number) and the MRP will be cross checked against the physical SKU.

The materials with out EAN will be rejected and if the material has to be packed by the company then the EAN will

be given by the company at Uppal Distribution center. All the packaging will be carried out at Uppal DC. ASN

supervisor checks the details and gives an ASN number the invoice will be stamped by the security.

Inbound and operations team will take care of the unloading of materials and unloading is done at docks. ASN team

will hand over the ASN document to the data entry operator and he will perform the GRN and he will confirm the

TOs and he will do put away confirmation.

The receiving team shall provide the required pallets and MHE material-handling equipments. With the help of the

receiving team the vendor will unload the material sku wise. Receiving team takes out one unit from each sku in a

crate for scanning article in system GRN depts. Any loose goods are not accepted, however free goods are

exempted. If the free good material small in size then packing team will be stick it along with the main item; which

will facilitate the pickers in out bound process, however the major packing is done at Uppal.

The shelf life of material that is maintained at Reliance is 70% from manufacturing date; if the item is not in the

prescribed expiry conditions then the category team will be informed about this. Goods must be tallied against the

vendor invoice if every thing is found satisfactory then supervisor has to make the receipt on the vendor invoice

copy and updates the inward register, where the proforma of invoice is noted down.

Pickers will be place the material location wise; location consists of rack numbers, bin numbers, shelve number,

quantity etc., of according to the corresponding stickers and list directs about article name. Description etc., as the

put away is confirmed the stocks are added in to the final closings of the material and the outbound team can access

the material provided if the material has to move. The stocks are moved in FIFO (first in first out method). The 3pl

employees will be trained accordingly and necessary instruction are passes time to time.


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Once the GRN is completed then transfer order (TO) and transfer of requirements are generated by the software,

Subsequent functions in put away will be happen after TO. Then the put away team will locate the stocks in the bins.

The location for SKUs has been pre-defined. Goods should move to pre-defined locations on racks as per category

with in 4 hours from the time of GRN preparations. If racks are full, pallets shall be placed at temporary location

with display till the time it gets space in the rack. Extra precautions shall be taken for categories like toys, stationary

and sports materials for storage at put away location to ease picking process.

Put away team do monitoring the availability of locations/space on operational basis i.e., hourly basis and fill SKUs

accordingly they should also re-arrange stocks on daily basis. While filling the SKUs FIFO method followed means

first GRN place at first in rack, Put away team monitor the expiry date at locations and update the information for

every 10 days.

As the stocks come to reorder level the system automatically generates purchase order to the vendor. The safety

levels are 50 percent minimum and reorder level is 65%. If the DCMBQ (distribution center maximum bin quantity)

of a SKU is 1000 units and the stocks at DC are come down to 700 pieces. System automatically generates PO for

300 pieces.

Central replenishment team will decide vendor, they will identify the capable vendors and negotiations will be done

at top-management level authorities. The negotiations will be carried out based on number of SKUs that the vendor

has manufacturing and number of materials he is supplying to the organisation.

The vendors, who are supplying to Reliance wellness, are supplying their health products to fresh DC, Kondlakoi

only. As they agreed to supply the material at one place, there are only seven vendors like this supply pattern.

1. Hindustan Unileaver ltd

2. Dauber

3. ITC

4. WIPRO

5. GLAXO

6. Parle G


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7. P&G

If any urgency will rose for material then inbound team with the help of state replenishment manager will

manage the things and he will co ordinate with local procurer to get the material. To eradicate the disadvantages

Reliance has state replenishment and state category team.

Safety stocks and reorder level is decided by budget team depending on the lead-time, that the vendors are agreed to

supply the material. As the lead-time increase the safety stocks and re order quantity increases, the safety stock

levels are increased so that the stocks can serve the requirements until the next stocks comes from the vendor. The

store stock is updated at central level as they perform the EOD (end of the day) process in the evening, the moment

they do this the according Bin MBQ at store the order raised against the store in the early mornings. In the morning

at 8am pick sheet and Post goods issue is done at the distribution center.

Flow of inbound process

Physical receipt of goods

Put away process

System Entry through GRN

Verification of SKUs against the PO/ Invoice


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Put away process

Alternative1 : Synchronous

Ware house Management

Alternative 2: Synchronous

Ware house Management

Monitoring with RF monitor

Put away processing

Logging on the terminal

Resource Planning with the RF


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Receipt of the goods from stores

The receipt supervisor collects the transfer order made by stores and it should contain,

Prior approval from DC manager for return of material to be attached along with Transfer order. Reasons

for return should be mentioned on the transfer order. Number of packages or handling units must be

mention on TO. Goods return material should be properly packed in cartoons.

Damage return will be received as per the normal receipt process. After making system GRN, these return stocks

should be transferred to damage location in the system.


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Flow Chart representation of Inbound Logistics

Unload the returned

material

Segregate into goodand damage stocks

Update the document In the system

Maintain the return inventory

separately, do not mix with regular

Transfer the stock from sale to

damage depts..

Add the stocks to physical DC

inventory

START


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Outbound Logistics

The outbound process includes the picking, vehicle scheduling and routing and delivery to the destinations.

System flow of the outbound processCreation Of STOs

PGI post goods issue

Creating outbound delivery

Outbound delivery split

Confirm the pick TO

Assigning pick-HU to TO

Creating TO for Delivery

Printing Deliverydocument


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Physical Process flow

Consolidation of Indents

Physical picking

Generation of pick list

Physical dispatch

Staging/verification


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Pre picking activity is performed before the loading of the materials into the transporting vehicle. IT team at

warehouse will download the store order request which transferred from NHQ national head quarter and converting

them into pick sheets in the morning at 7.30am will be done and these pick list be handed over to dispatch

supervisor at 9.30 am. The stores are organized into

Regular (daily) and

Lean (alternative days)

On the Saturday supplies will be made to all the stores irrespective of working days.

While loading the material the lean stores are given priority over the regular stores. As the outbound team

receives the details of all stores then the pick sheets of lean stores will be handed over to the picking team. The pick

sheet will have the line items and its details. Trip sheet is simultaneously will be raised which consist of the trip

details of the vehicle.

Dispatch supervisor will assign picking job to picking staff based on the categories. Dispatch supervisor

will note down the details of the order request received from branches or stores in indent register and allocate inward

serial number to pick list.

The supervisor will sort the pick list based on category and prioritize the branch-picking schedule. These

schedules are based on the pre-defined branch/store schedule. Pick list are handed over to picking staff with their

names and time written on the pick list.

The productivity of the pickers are measured based on time taken to complete particular job. On the

verification of the pick list if any additional vehicle is required the indent for hired vehicles shall be placed to

transportation depts. Upon verification of the pick list the stock out material shall be intimated to the category team

for replenishment.

Staging / order picking activity


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Order picking material will be staged at defined order picking bay. The name of the branch will be displayed on the

staged material. Pickers use small transparent polyethylene bags for the loose pickings. Quantity will be written on

these bags. All the cartoons used for re-packing should be sealed well.

Checking activity

Pickers will handover the picked list to dispatch supervisor after the picking be done. The pick list will direct the

picker to pick the material easily. The pick list will have the location of the material where it is laying in the shed.

The Shelve number followed by rack number will be printed so as to facilitate the picker. If the pickers still get any

confusion among packing and others, then he is supposed to check the article number. The racks are numbered and

placed in sequences. The odd and even numbered racks placed opposite to each other.

Dispatch supervisor will handover the picked list to system for TO generation. Checking team will verify physically

picked material against TO. Corrections if any in the transfer order will be edited in this stage. Edited transfer orders

to be authorized means are finalized. Number of packages against the particular transfer order will be mentioned. All

packages will have the transfer order number and the branch store name.

Loading and dispatch activity

Checked material to be moved loading bay or loading docks by the loaders. Dispatch supervisor will issue gate pass

with transfer order and package details written on it.

The gate pass will have vehicle number and branch name written on it. Securities will the number packages and

allow the loaders to load in to the vehicle. Transfer orders and dispatch details to be entered in the dispatch register

by the security.

Acknowledgments for receipt of goods from the braches need to filed at distribution center for further references,

disparities if any will be corrected immediately after receiving the acknowledgment. Before taking any corrective

action against discrepancy, DC manager should reconcile physical as well as the system stock.


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Picking - Delivery-goods issue

DeliveryDelivery

Article

Quantity

Transfer Order

Automatic

Determination of

storage bins

Transfer Order

Pick List

Confirm Transfer Order

Confirm the pick

Goods Issue


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Damage / Expiry material return to vendor

The return to the vendor is also an outbound process to the distribution center. Damage/expiry material received

from the branches are segregated as per vendor or category wise at damage location, prior to the category team

would be informing about the returns to the vendor and takes the necessary approvals for returning with the help of

the DC manager. Category team has to give schedule to DC manager for the return deliveries. Vendor wise debit

memo should be prepared in 3 copies. Checking team will verify the stocks physically against the debit note and

then it should be returned to the vendor. The receipt copy of debit note should be filed, and it should be duly signed.

Vehicle Scheduling

Reliance distribute it goods by Re logistics which is a sister consignee to Reliance retail ltd. All the vehicles start

from WET dc. Wet DC requires more vehicles than any other DC. Collecting the vegetables from the market and

other articles such as fruits and dairy and the products has to preserve the freshness till it reaches to the customer.

In order to maintain this, the goods are directly supplied to WET DC where the cold chain infrastructure is

maintained. Reliance has allotted 37 vehicles in total to Fresh, 6 vehicles are completely engaged in collecting fruits

and vegetables. With the help of other vehicles the DCs will carry out the morning supplies, the vehicles which are

engaged in collection will returned by after noon and will continue in regular supplies, and 2 more vehicles are set

open. When the vehicles carry the material a minimum of 5-store material, if the quantity is huge of any store this

condition is exempted. Even the store ordered for 1 sku. Each handing unit is labeled with the sticker having the

details on it.

The goods will be supplied to the Vijayawada, Visakhapatnam through Re-logistics only but if the outbound

manager feels he will hire the outside, the outside transport PRC (PIONEER ROAD CARRIERS) transporters are

the transporters contributing their services.


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The material will be supplied separately, and is not mixed up with any supplies of other distribution centers. The

planning of the vehicles will be intimated to the wet DC by 11.00am.

After completion of each process complete shift cycle, the details will be updated on the board at the entrance of

the shed, the information board is displayed it will update for every shift.

Store Fill Details

Reliance Retail Ltd

Kondlakoi DC date

Shift stores

STAFF: quantity in eaches

Fill rate line of SKU avg. Fill rate

S.no Store Article Frees STN

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15


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Total

Vehicle Trip Sheet

The trip sheet details have to be maintained in the system, but in the system consolidated trip sheet will be

maintained where the manual trip sheet carries the details of single store.

Inventory Management

It is necessary because it will help in improving the customer satisfaction because the availability of the customer

required material in right at competitive price would defiantly retain the customer. The argument is based on the

notion that both Procurement and transportation costs will be reduced if lot sizes are large.

Inventory management equations that helps to reduce cost :

Total cost per unit time:

TC = UCD+VC

Optimal cost per unit time:

TCo = UCD+VCo

Cost of each unit of lost sales including loss of profits:

LC = DC+SPUC


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The total holding cost per unit per unit time:

HC+ACSi

Accounting information

Cost of products sold = opening stock+net purchasesclosing stock

Value of stock = number of units in stockunit value

Average cost =Total cost of units/Number of units bought

Closing stock = opening stock+purchasessales

Gross profit = sales revenuecost of units sold

Value of demand in a time series

Actual demand = underlying pattern+random noise

Linear relationship

dependent variable = a+bindependent variable

y = a+bx

x = value of the independent variable

y = value of the dependent variable

a = intercept, where the line crosses the y axis

b = gradient of the line.


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It is the process by which any organisation will protect its uncertainties, Demand uncertainties and uncertainties of

the lead-time.

The consolidated Store Maximum bin quantity is DCMBQ. And the decision of storeMBQ is decided by the

Category team, the decisions are further help the company in forecasting the store and DC, inventory levels the

decisions related to storeMBQ are influenced by spending pattern of the people who reside in the locality and taste

and preferences, income groups etc.,

Dimensions of inventory models

Products

single product vs. multiple products

perishable or durable

Decision variables

when and how much to order

pricing

production and/or delivery schedule

capacity expansion

setup reduction

quality improvement

Decision making structure

single decision maker vs. multiple decision makers

Time

single period, finite horizon, infinite horizon

deterministic or stochastic


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Supply

Controllable: when and how much to order

Supply contracts

Imperfect quality

Limited capacity

Lead time

Demand

Exogenous: deterministic (constant or time

dependent), stochastic

Endogenous: pricing model

The DC is divided into two sheds, to organize the materials

PF (processed food) shed

Staple Shed

Sections are divided into categories

RTC-ready to cook-

RTE-ready to eat-

The Bins in the shed are divided into 2 types

Reserve bin and

Forward bin.


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The material is stored in on the racks and pallets. Which are very much accessible to pickers, it shall convenient to

the picker. Received goods are stored in reserve bin and are moved to forward bins just after the bins become empty.

If the material received is 300 units and assume the DC dont have the stock. 200 units will store in reserve bin and

100 units will be moved to the forward bin. The pickers will pick the material from the forward bins; by all means

the forward bins are used by outbound process.

The details of the racks and pallets at the DC

Racks

R01- Processed food forward Bin R11- Processed

food reserve Bin R04- Staples forward bin

R14- Staples reserve bin

R02- Batch management forward bin

R03- Batch management reserve bin

Pallets

P01 Processed food reserve Bin P02 Processed

food forward Bin

P03 Staples reserve bin P04 Staples

forward bin

If the material has to pick from list where the location given as R01-10-3-B2, then the picker will move to the tenth

rack at R01 level (Ground floor), and will select the second bin in third line. The inventory manager has set the

strategies and changes it time to time for smooth operations.

The material storing is based on the following characteristics

Food/ Non food

DCMBQ (maximum and minimum)

Storing temperature


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Physical size

Forecasted sales volume

If he size is more and have a great out flow of materials then the items will be placed near to shipping point.

Suppose The DCMBQ (maximum) of an item is 50 pieces, and the forecasted sales volume is 500 units, the inflow

will be according to the forecasting and DCMBQ but forecasting given priority. As the DCMBQ of that particular

item is 50 and the forecasted volume is 500 i.e., the stock will move from the distribution center to the stores with in

a short period so the material lay down near to loading point at a temporary location as no reservation is provided for

the material.

Replenishment Delivery

The responsibility starts from put away process till the picking of the materials. The storage strategies and decisions

are the independent decision of the inventory manager. Though it is an independent decision he will coordinate with

the pickers because they are persons who are going to move material from the DC to loading or shipping point or to

the loading docks. These loading docks are different from the receiving docks.

The manager will take decision considering

Picker efficiency

Reducing handling decisions

Eradicating process damages

There is every chance for damage; it cant be stopped by predicting, so prior precautions are taken to control the

damage and the damage is divided in to,

Process Damage

Forward BinReserve BinGR Process Picking


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The Damages, which occur during loading/unloading/put away process and the loss, will levy on

the worker by the and will be decided by 3PL management.

Manufacturing Damage

The manufacturing defects or the loss of the quantity/weight in seal boxes etc. will be intimated to

the vendor and will be replaced by the vendor

Pilferage e Damages

The miscellaneous damages

Perpetual Inventory activity

The DC manager will put the schedule for perpetual inventory category wise with coordination with inventory

manager. Teams will be formed and will be assigned this activity. This activity is carried out under the supervision

of inventory manager. The perpetual team will do the reconciliation of issues and receipts prior to stocktaking.

Pending GRNs/ issues will be updated in the system before stock taking.

Till the perpetual inventory is complete dispatches or receipts shall be bared for that category/ SKU. The inventory

team for inventory checking gives the prior planning to DC manager. The team has to check a minimum of 36 items

per a day, and the inventory staff is working for all days in week. And the count called as Cycle count.

There will be a separate check for every quarter by the inventory team; auditors will conduct stock inspection on the

year end (January 31st and march 31st). called as statutory inventories. The loss allowed by the state general manager

is 0.03% on sales turnover and in the hands of inventory management the power to write off a loss of 0.01% on the

sales.

The inventory team shall arrange the stocks in coordination with the put away team before the stock check. DC

manager will give the list of SKUs to be checked in that category. Team shall take the physical stock of sku at their

respective bin as well as put away location. It will update in the system. Discrepancies found shall be rechecked


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again physically. Discrepancies if any reconciled and updated with the approval from commercial team. All the

perpetual inventory sheets to be filed and documented for further reference.

Conclusions

Reliance logistics are as powerful as it is fulfilling all the requirements set by the distribution center.

The average filtrate during the period of study is 99.5%, which tells about the availability and accessibility

of the material to the store.

Each job/task assigned to the separate team making them as sole responsible.

Reliance want expand their retail market into all sector including medicine, electronics, books and music

etc,

Limitations

Time duration is only 45 days.

The study is conducted at Kondlakoi distribution center and other two-distribution centers were not

considered.

Store ( Outlet) details are not covered

Suggestions

Worker efficiency can be improved by training, motivating them.

Reliance can make agreements with the local formers for food products and has to support themby providing money, technology and other infrastructure for agriculture.

Make separate strategic planning for the vehicles, which are coming at lunch to avoid the trafficconjunction


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The information regarding the transit stock should be provided to the Inbound and Inventoryteams which will be helpful in better optimal utilization of resources

It is advised to have all the stores as regular supplies by adding more supplies vehicles

Organisational structure Reliance Distribution center

COMM. HEAD SLP HEADFACILITY HEADOPER HEAD SCM HEAD

Vice President

Asst Vice President

General Manager

Inbound Manager Outbound Manager Inventory Manager

DC Manager

CEO


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The store details of Reliance in Andhra Pradesh

Hyderabad

Sno Location Store Landline Supervisiors Numbers

1 Amba Gardens

BO-23511030

CSD-23511020

2 Anand Bagh

BO- 27241193

CSD- 27241383

3 Balkmpet

BO-23750028

CSD-23750026

4 Banajara hills

BO-23391028

CSD-23391027 Raju

nbound In

harge

Outbound in

charge

Vendor

Coordinator

ASMMIS managerTransportation

In charge


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5 Bowenpally

BO-27953562

CSD-27953561

6 Chira Ali lane BO-23205992 Sai ram

7 Dilsukh nagar

BO-24160077

CSD-24160066

8 Hyder Nagar

BO-23051733

CSD-23051712

9 Kalanikethan

BO-24043514

CSD-24043510

10 Kamala Nagar

BO-24021751

CSD-24021752

11 Malkajgiri

BO-27061142

CSD-27061126

12 Miyapur

BO-23042741

CSD-23043049

13 Old Alwal

BO-27863120

CSD-27863125 Murali 9963084442

14 R.K. Puram

BO-24031687

CSD-24031647

15 Ramanthapur

BO-27033789

CSD-27033788 Balaji

16 S.R. NagarBO-23706519


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CSD-23706517

17 Sahara Estates

BO-24124799

CSD-24121066

18 Saket Road

BO-27124912

CSD-27130473

19 Survey of India

BO-27208221

CSD-27208222 Pavan 9391334470

20 Tolichowki

BO-23560973

CSD-23560972

21 Vengal Rao Nagar

BO-23800545

CSD-23800548

22 Vidya Nagar

BO-27610930

CSD-27610872

23 Vinay Nagar Colony

BO-24072541

CSD-24072461 Durga 9989744403

24 V.V. Nagar

BO-23062674

CSD-23062654 Ramakrishna

25 Yousufguda

BO-23750184

CSD-23750438 Ramakrishna

26 Habsiguda

BO-27150437

CSD-27150438 Ashoke kumar 9290528626

27 Film NagarBO-23555970

Srinivas 9391357832


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CSD-23555980

28 Santhosh Nagar

BO-24554823

CSD-24531694

29 NMDC

BO-23536194

CSD-23536195

30 Moti Nagar

BO-23833042

CSD-23831591 Afsha Unnisa 9963195551

31 LB NAGAR

BO-24030040

CSD-24030020

32 Shivam Road

BO-27402877

CSD-27401066

33 BN Reddy Nagar

BO-24241350

CSD-24241340 Guru Babu 9866522364

34 Hyder Shah Kote

BO-24190352

CSD-24190351

35 Alwal

BO-27973881

CSD-27973884 Mahendar 9908718885

36 West Maredpally

BO-

CSD-27807302

37 Nagole

BO-9894969710

CSD-24222695

38 AttapurBO-9247025827


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CSD-9247025893

39 Gachibowli

BO-23002281

CSD-23002283

40 Kushiguda

BO-27131524

CSD-27131523

41 kachiguda

BO-24655758

CSD-24738609

42 Vikrampuri-RWPL

BO-

CSD-66902541

43 Somajiguda-RWPL

BO-

CSD-

44 Ameerpet-RWPL

BO-

CSD-

45 Vikrampuri

BO-

CSD-27846805

46 Ashtalakshmi Temple

BO-

CSD-

Vijayawada


1 One Town

BO-0866-2567522

CSD-0866-2567511

2 SuryaraopetBO-2435881


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CSD-2435880

3 SathyanarayanaPuram

BO-2574554

CSD-2574552

4 Machavaram

BO-2343226

CSD-2434221

Guntur


1 Broddipet

Bo-0863-2272301

CSD-0863-2272303

2 Arundalpet

BO-2272302

CSD-2272306

3 kothapet

BO-2272311

CSD-2272312

4

koritipadu

BO-2272231

CSD-2272232

Visakhapatnam


1 Seethamadhara

2 Akkayaalam

BO-

CSD-


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3 Murali Nagar

BO-

CSD-

4 Marripalem

BO-0891-2507756

CSD-0891-2507757

5 MVP colony

BO-2508616

CSD-2508617

6 Chinna Waltair

BO-2507652

CSD-2507653

7 Pedda Waltair

BO-2543573

CSD-2543574

8 Dwaraka Nagar

BO-2547210

CSD-2547211

9 Shanthipuram

BO-2547237

CSD-2547238


Warangal

1 Central excise

BO-0870-2457287

CSD-0870-2457286

2 Nayeem Nagar

BO-2455493

CSD-2455494

3 Forest OfficeBO-2430016


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CSD-2430015

Bibliography:

http://www.reliance.com

http://ibef.org

G Raghuram and N Rangaraj (2000) Logistics and Supply Chain management (1 st edition ), Macmillan India

Limited, New Delhi

B S Sahay (2007) Supply Chain management (2nd edition ) Macmillan India Limited, New Delhi

Appendices
http://www.reliance.com/http://www.ibef.org/http://www.ibef.org/http://www.reliance.com/

logistic management modified

Documents