project report - purushottam (2)

7/28/2019 Project Report - Purushottam (2)

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A STUDY ON PACKAGING STANDARIZATION SYSTEM FORINBOUND LOGISTICS

A PROJECT REPORT

Submitted by

R.DINESH KUMAR

(412511631031)

In partial fulfilment for the award of the degree Of

MASTER OF BUSINESS ADMINISTRATION

SRI SAI RAM INSTITUTE OF MANAGEMENT STUDIES

CHENNAI

ANNA UNIVERSTIY: CHENNAI

MAY 2013


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ANNA UNIVERSTIY: CHENNAI

BONAFIDE CERTIFICATE

Certified that this project report A STUDY ON PACKAGING

STANDARDIZATION FOR INBOUND LOGISTICS is the bonafide work of

R.DINESH KUMAR (Reg no. 412511631031) who carried out the project

work under my supervision.

EXTERNAL GUIDE: INTERNAL GUIDE :

MR.V.NAGARAJA RAO Mr K.MARAN

AGM (MPS, Imports & Corp Logistics) HEAD OF THE DPMT

ASHOK LEYLAND SIMS


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ACKNOWLEDGEMENT

I would like to thank Ashok Leyland for giving me platform to harness my knowledge and skills

in the field of supply chain management and operations by giving me opportunity to work on the

project A STUDY ON PACKAGING STANDARIZATION SYSTEM FOR INBOUND

LOGISTICS.

I would like to extend my heartfelt gratitude and sincere thanks to Mr. V. Nagaraja Rao

and Mr. Srinath Kasam, who guided, encouraged and supported me throughout the project. They

were there to help me at each and every moment and his invaluable inputs served as guiding light

throughout the project work.

Also I would like to sincerely thank the entire Ashok Leyland Ambattur Unit Team for

making the internship as memorable one. I really enjoyed each and every moment working with

team and i appreciate the freedom provided to me by Ashok Leyland in working on this project.

R.DINESH KUMAR


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LIST OF CONTENTS

ABOUT THE PROJECT

CHAPTER NO. TITLE PAGE NO.

ABSTRACT

1 ABOUT THE PROJECT

2

2.1 INDUSTRY PROFILE

2.2 INDIAN PACKAGING INDUSTRY

2.3 GLOBAL PACKAGING INDUSTRY

3 COMPANY PROFILE

4 INTRODUCTION TO LOGISTICS

5

5.1 ALAU OPERATION

5.2 EXPORTING PACKAGING

5.3 EXPORTING PROCESS

6

6.1 ALAU COLLECTIONS

6.2 MILK RUN COLLECTION

6.3 OFFICE COLLECTION

6.4 INTER UNIT LOGISTICS

7

7.1 PACKAGING COMPANIES

7.2 FLEXOL INDIA PVT LTD

7.3 CHEP INDIA PVT LTD

7.4 GOODPACK PVT LTD

8 POOLING CONCEPT

9ALTERNATIVE PACKAGING MATERIAL

SUPPLIERS PROFILES

10 COMPARISON ANALYSIS

11 CONCLUSION


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ABSTRACT

Standardization of packaging system with reference to transportable products bestows

a host of issues encompassing factors leading to the proper selection of products, their respectivequantum and a precise packaging based on the type of product. This research focuses on two

contemporary issues regarding standardization of packing system. The first one address the

establishment of a cost-cutting mechanism/strategy in selecting a proper package material among

various alternatives such as plastic bins, metal bins that comes in different sizes and transporting

as well. The type of package material depends on the type, quantum and mass of the products, it

is going to carry. In this current milieu, there are lots of vendors who come forward in

outsourcing these packaging material to Ashok Leyland. Selecting a proper vendor, based on

their quoted price, their experience in the field, their commitment is of utmost important and also

is the second issue addressed in this research. A sound comprehension of these issues would

obviously contribute towards arriving at profitable scenario and also obliterate the perils leading

to inappropriate decision making.

Packaging as an industry had grown enormously and had become the value added and mandatory

service in the outsourcing industry. In addition to warehousing, Transportation, Inplant logistics

outsourcing of packaging & services had emerged recently in the industry.

New and innovative business models are evolving in the industry like pay per usage model to

pay on rental basis concept. End to EndConcept which involvesbundling of services to a

single stake holders to leverage the Total Cost of Ownership.

Sustainability is achieved by deployment of Environmental friendly packing by emphasizing on

3RReturnable, Recyclable and Reusable materials.

INDUSTRY OVERVIEW


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PACKAGING

Packaging interacts with the logistics system in a number of different and

important ways. The size of and protection afforded by the package affect the type of material

handling equipment used and the level of product damage incurred. The packaging is not only

important in the warehouse but also during the transportation. It does not contribute to the

products value but on logistics cost is considerable. Packaging is very much important in the

logistics and supply chain management, but also important in the other functional areas of the

company. Packaging is a concern to marketing, production and legal. To the marketer, packaging

may be a method of selling or at least a method of providing product information. Production

managers are concerned with the cost of placing goods into the package and package size. The

main important function of the packaging is to provide the information about the product it

contains. The package must also provide how the material should be handled. Goods stored in

the warehouse should have proper identification so that warehouse personnel can easily locate

and load the materials correctly. Companies use color codes for the materials to be stored in the

warehouse. The company should note the weight of the material in the packaging so that it can

be easy for the people to know about the rest of the top material on it. A major concern in the

packaging is ease of handling with the handling and transportation. The packaging design should

consider maximize the ease of handling the material in the warehouse and during transportation.

INDIAN PACKING MANUFACTURING INDUSTRY

The highly fragmented packaging industry is estimated at Rs 8,000 crore.The

industry is growing at the rate of 22-25 per cent per annum.In the next five years, the sector is

expected to triple to around $ 60 bn.The net profit of the packaging industry spurted 104.5

percent during Q3 FY08, against a growth of 29.5 percent in the December '06 quarter.The large

growing middle class, liberalisation and organised retail sector are the catalysts to growth in

packaging.More than 80 percent of the total.


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GLOBAL PACKAGING MANUFACTURING INDUSTRY

The global packaging material and machinery industry generates $500 billion yearly, accounting

for between 1% and 2% of gross domestic product in industrialized nations, according to the

World Packaging Organization. There are 100,000 packaging manufacturing companies in

operation, representing 5 million jobs.

Packaging technology has been undergoing rapid development over the past few

decades, with consumers reliant on packaging for food safety and transportability in particular.

The explosion of supermarkets and convenience foods would not have been possible without

developments in packaging.Recent advances in environmentally friendly packaging are helping

packaging manufacturers meet demand for recyclable products as consumers seek to reduce

waste and limit the harmful impact of modern living on the environment. Sustainability is a

major issue for the packaging industry moving forward as companies reliant on the industry are

obliged to comply with changing government legislation encouraging recycling. Producing

lightweight alternatives to traditional packaging is also key as companies seek to cut transport

costs.packaging in India constitutes rigid packaging. The estimated to be around 6 mn tones, of

which about 40 percent is consumed by the packaging industryremaining 20 percent comprises


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flexible packaging .There are about 600-700 packaging machinery manufacturers, 95percent of

which are in the small and medium sector located all over India . Indian packaging machinery

exports are rapidly growing India's per capita packaging consumption is less than $ 15 against

worldwide average of nearly $ 100.


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COMPANY PROFILE

ASHOK LEYLAND

HISTORY

The origin of Ashok Leyland can be traced to the urge for self reliance, felt by independent

India. Pandit Jawaharlal Nehru, Indias first Prime Minister persuaded Mr. Raghunandan Saran,

an industrialist, to enter into automotive manufacturing. In 1948, Ashok Motors was set up in

Madras by him, for the assembly of Austin Cars. The companys destiny and the name changed

soon with the equity participation by British Leyland and Ashok Leyland commenced

manufacture of commercial vehicles in 1955. Later, the Hinduja group,a British-based

transnational conglomerate started by Indian expatriates, took over the company. Since then

Ashok Leyland has had a major presence in the Indian commercial vehicles industry with a

tradition of technological expertise and top class quality at affordable prices.

Ashok Leyland, the second largest commercial vehicle company in India in the medium and

heavy commercial vehicle (M&HCV) segment manufacturing buses ranging from 19seaters to

80seaters, trucks in the entire truck range starting from 7.5 tons to 49 tons. The company claims

to carries over 60 million passengers a day, more people than the entire Indian rail network. In

the populous Indian metros, State Transport Undertakings (STU)usefour Ashok Leyland buses

out of every five.

COMPANY ACTIVITY

MISSION GEMBA

Gathering for meeting at every morning to discuss about yesterday dispatch and current

planning.
http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdom


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MANUFACTURING PLANTS

Ashok Leyland has seven manufacturing plants in India. The total covered space of all these

plants put together exceeds 650,000 sq m and together employ 12000 personnel. The

manufacturing plants are

The mother plant at Ennore and a central hub at Ambattur, both in Chennai. Three plants at Hosur, Tamilnadu, viz.Hosur I, Hosur II and a Press Shop (CPPS). Assembly plant at Alwar, Rajasthan. Assembly plant at Bhandara, Maharashtra. State-of-the-art facility at Pantnagar, Uttarakhand.

PRODUCT PORTFOLIO

Ashok Leyland, leading the manufacture of heavy vehicles for the past five decades, offers a

world class range of trucks, buses, special application vehicles and engines, exports to over 40

countries in the world. The product portfolio of Ashok Leyland is shown below:

ASHOK LEYLAND

BUSES


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Ashok Leyland produces buses covering 75 hp to 400 hp, in the price range of Rs. 6.1 lakhs to

Rs. 35 lakhs. The vehicles are available in diesel and CNG variant with a capacity ranging from

13 to 67 seaters. Ashok Leyland pioneered various concepts of buses in India, such as the

vestibule and doubledecker buses. The entire range of products is as follows:

1) Viking BS1 2) Viking BS2 3) 12M Bus

4) Cheetah BS2 5) Panther Luxury 6) Stag Bus

7) Double Decker 8) Vestibule Bus 9) Airport Tarmac

10) Luxura Magical India Bus

TRUCKS

Ashok Leyland manufactures trucks of various capacities that take any task with ease. They are

especially suited to Indian conditions, made to negotiate through the Indian terrain that is often

unfriendly for trucks. The trucks come in haulage models which can be used in quarries for

transportation of sand and earth or as hippo models which can used for application like acid

tankers, re-fuellers, containers, transit carrying and recovery vehicles. The entire gamut of trucks

includes:

1. Haulage Models2. Multi axles Tippers3. Multi axle Vehicles4. Tractors5. Ecomet

DEFENCE AND SPECIAL PURPOSE

Ashok Leyland produces vehicles for Indian defence and for special purposes, such as

firefighting, carrying ammunitions, recovering and towing vehicles (up to a payload of 7.5 Ton)

etc. The vehicles used for defence and special purposes offer superior performance in terms of


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speed, acceleration, carrying capacity and capability to perform on the tarmac and off-the-road.

The range of products is given below:

ENGINES

Ashok Leyland manufactures diesel engines in collaboration with world leaders for

industrial,power generation and marine applications. The engines are classified into three types

based on their applications, as shown below:

1. Engines for special applicationsUsed in pavers, excavators, compressors, etc.2. Marine diesel enginesUsed in Trawlers, sailing vessels, speed boats, ferries etc.

LOGISTICS AT AHOK LEYLAND

Ashok Leyland has a vast vendor base and to manage the logistics at its hub, Ashok Leyland has

outsourced them to third party logistics service providers namely TVS Logistics and Mahindra

Logistics.

THIRD PARTY LOGISTICS

Third Party Logistics provider (3PL) is a firm that provides logistics services to

companies for part or sometimes all of their supply chain management function. Third Party

Logistics service providers typically specialize in integrated warehousing and transport services

DEFENCE VEHICLES

1) Light Recovery Vehicle

2) Stallion

3) Field Artillery Tractor

4) Water Browser

SPECIAL PURPOSE VEHICLES

1) Rapid Interaction Vehicle

2) Hippo Tractor

3) Beaver Tractor and Haulage

4) Hippo Haulage


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that can be scaled and customized to customer needs based on market conditions and the demand

and delivery requirements for their products and materials. The use of third-party logistics

providers has grown steadily since their inception in the 1980s and continues to grow. Many

large organizations have either partially or fully outsourced their logistics operations; however,

smaller organizations have been slow to follow.

ALAU OPERATIONS

Ashok Leyland is operating 7 manufacturing plants spread across India.

Ashok Leyland is having a huge supplier base (500+ nos) spread across India. However most of

the suppliers are south based suppliers (150-200 nos).

Inorder to service to the Northern plants ( PNR / ALW / BHD) AL is operating at Hub in

Chennai which is called as Ambattur Hub.

Materials are collected thro Milk run collection (AL Scope) or by office collection (Supplier

Scope) , which are consolidated at hub and are then dispatched to the respective units in FTL.

Milk run collection is being outsourced to TVS Logistics and Hub operations are being done

through Mahindra Logistics.

Transportation activity is being done by AL-approved transporters key 9 Transporters as per

the agreed rates and terms in the contract.

Transporters need to ensure for Ontime delivery within the agreed transit days between source &

destination ( Sample case as below) -


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Milk run collection

Office collection

EXPORTING PROCESS

Ashok Leyland is executing Export operations to Russia and Ukraine in SKD form and

delivery is being done in KIT-Format.

For Export operationAL had outsourced the packaging operation to a third party service

provider M/s FLEXOL Packaging Ltd who would execute End to End Packaging

activity

Packaging activity is being done in two modes

1. Aggregated based PackagingPackaging of Engine, Gearbox, Axles (Front & Rear) and Frame are being done at

Ennore2. Common items Packaging

All the other parts apart from Aggregates are being packed at Ambattur hub and

are stuffed into the containers.

SUPPLIERS ALAU HUB BHANDARA

ALWAR

PANT NAGAR


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EXPORTING PROCESS

Receiving materialDestuffing

PackagingConsolidation

Stuffing


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Flow chart of Export operation

Warehouse

Consolidation

StuffingCFS(Customs

procedure)

Port of loading


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ASHOK LEYLAND COLLECTIONS

1. Milk run collection2. Office collection3. Inter Unit Logistics

MILK RUN COLLECTION

Milk run process, is a logistic technique for the collection and transportation of goods from

suppliers by the logistics service provider with a defined delivery route, in which various stops

are planned and executed in terms of quantities and timings, rather than awaiting the delivery

from the suppliers. In the milk run process the suppliers and the logistics service providers are

given the material collection schedule. At Ashok Leyland, TVS Logistics takes care of the

milkrun process at Chennai, Coimbatore, Hosur and Bangalore. In the milk run process at

Chennai, TVS Logistics collects material from 85 suppliers every day in various areas like

Gummidipoondi (two routes), Ambattur (four routes), Guindy, Perungudi, MM Nagar and Point

Collection (two routes). All the collected material is consolidated at the hub store wise and the

material is loaded in truck the day material is collected. The manifest is created at the hub for all

the items in the truck. The next day, material is dispatched from the hub to Ashok Leyland. At

Ashok Leyland the material is Inwarded at the gate, Goods Receipt Note (GRN) processed,

Quality Control processed (for non-self certified items) stores processed and then the material

reaches the assembly line. Before inwarding the material at gate, the manifest is verified at the

TVS Logistics office at Ashok Leyland and cleared for errors if any.


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OFFICE COLLECTION

Office collection is a logistic technique for transporting the goods from suppliers, in which the

supplier is responsible for transporting the goods. The logistic carrier may be owned by thesupplier or the goods will be sent by other approved logistics service provider. For these logistics

service provider the amount will be paid in the part costing by Ashok Leyland. In this model of

supply the schedule is given to the suppliers only. The supplier takes care of sending the

material. At Ashok Leyland the material is Inwarded at the gate, Goods Receipt Note (GRN)

processed, Quality Control processed (for non-self certified items) stores processed and then the

material reaches the assembly line. Before inwarding the material at gate, the manifest is verified

for errors if any. If there are any errors, the errors are cleared and then inwarded at the gate.


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INTER UNIT LOGISTICS

Inter unit logistics is a logistic technique for transporting the goods between various units of

Ashok Leyland. TVS Logistics and Mahindra Logistics takes care of the inter unit process. TVS

Logistics takes care of the inter unit process at Chennai, Hosur and Alwar units. Mahindra

Logistics takes care of the logistics at Bhandara and Alwar units. A manufacturing schedule is

devised and given to the production department. The production department at all the units

supports each other for the requirement of material. The logistics service provider collects the

materials from the production unit and transports it to the required plant. At the plant,the

material is inwarded at the gate, Goods Receipt Note (GRN) is generated, and then the material

reaches the assembly line. Before inwarding at the gate, the material is validated and cleared for

errors if any.


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PACKAGING COMPANIES

Project is to focus on study of the Packaging industry, key suppliers and a competitive analysis

to assess the competencies in line to matching of the requirements for AL.

Few of the Packaging companies profile is studied & created below -

FLEXOL PACKAGING INDIA LTD

Flexol packing india limited founded in 2010 as a young company. Flexol company providing

service to ashok leyland for rental per day basis. FLEXOL Packaging India Pvt Ltd is a

choiceComplimentarian partner focused on Packaging Solutions. We offer Comprehensive

Packing Solutions for automotive, industrial, aerospace, retail,FMCG, health care and agricultureapplications. Our commitment to Environment & Society is reflected through Green and Clean

Initiatives. We strive to provide the very best value for money to our customers.

i. Foldable Mesh Container


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ii. Re Usable Containers

iii. Green Pallet

iv. Foldable Metal Container


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CHEP INDIA PACKAGING LTD

Chep is an international company dealing in pallet and container pooling services, serving

customers in a range of industrial and retail supply chains. Chep is a leading provider of palletand container pooling services for the Aerospace, Automotive, Chemical, Consumer Goods,

Fresh Food and Manufacturing industries.Chep provides a full range of pallets for pooling,

1 Wooden pallets

2 Plastic pallets

3 Display pallets

4 Automotive folding container
http://www.chep.com/Industry/Aerospace/http://www.chep.com/Industry-Solutions/Automotive-Solutions/HOME-Automotive/http://www.chep.com/Industry/Chemical/http://www.chep.com/Industry-Solutions/Consumer-Goods-Solutions/HOME-Consumer-Goods/http://www.chep.com/Industry-Solutions/Fresh-Food-Solutions/HOME-Fresh-Food/http://www.chep.com/Industry-Solutions/Manufacturing-Solutions/HOME-Manufacturing/http://www.chep.com/Pallets/Wooden_pallets/http://www.chep.com/Pallets/Wooden_pallets/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Automotive/http://www.chep.com/Pallets/Automotive/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Wooden_pallets/http://www.chep.com/Industry-Solutions/Manufacturing-Solutions/HOME-Manufacturing/http://www.chep.com/Industry-Solutions/Fresh-Food-Solutions/HOME-Fresh-Food/http://www.chep.com/Industry-Solutions/Consumer-Goods-Solutions/HOME-Consumer-Goods/http://www.chep.com/Industry/Chemical/http://www.chep.com/Industry-Solutions/Automotive-Solutions/HOME-Automotive/http://www.chep.com/Industry/Aerospace/


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5 Automotive crates and container

6 Reusable plastic crates

WHY CHEP

ACCESS VALUE ADDED SERVICE

CHEP serves over 500,000 customer touch points around the world with superior

products and technology every day.

GAIN OPERATIING EFFICIENCY

Delays in the supply chain cost every business money. The time spent sorting and

inspecting white wood or exchange pallets, cleaning up Durable and innovative pallets and

containers reduce product damage; provide an environmentally sustainable platform and save

customers time and money. CHEP understands that an efficient supply chain is a competitive

advantage teams are continually working on new products and offerings to provide continuous

improvement to customers.


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BENEFITS FROM OVER 50 YEARS

Chep has pooled pallets and containers for over 50 years. The business has grown from

a single country in 1958 to over 50 countries today.

REDUCE PRODUCTS DAMAGE

A shipping platform should not only deliver products to their destinations, but should

also provide maximum protection. Chep's durable pallets, RPCs and containers

ALWAYS RECEIVE HIGH QUALITY AND DURABLE PRODUCTS

All chep equipment is designed to withstand the abuses of today's global supply chain.In addition the chep Engineering and Innovation Centre teams are continually working on new

products and offering to provide continuous improvements to customers.

USE A WORLDWIDE NETWORK OF OFFICES AND PRODUCTS

CHEP's global reach is unsurpassed, serving over 500,000 customer touch points in over

50 countries from a network of over 744 service centre. CHEP regularly shares learning across

regions to leverage best practice for all customers.

USE ENVIRONMENTALLY SUSTAINABLE PRODUCTS

Pooling, the combining and sharing of assets in a common effort, is by definition an

environmentally sustainable concept. CHEP has pooled pallets and containers since 1958. Chep

only uses lumber from tree farms, which are a responsible and sustainable source of timber. The

pooling model encourages the repair and reuse of pallets and broken or damaged components arerecycled rather than sent to landfill. Chep makes every effort to operate in an environmentally

sustainable manner.


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GOOD PACK COMPANY LTD

Good pack a Singapore homegrown company provides a patented unique packaging alternative

for bulk cargo to replace wooden boxes and metal drums for cost and environmental advantages.

The company is a global company providing cost leading, innovative and creative IBC

(Intermediate Bulk Container) supply chain solutions. The company own and operate the world's

largest fleet of over 2.6 million steel IBCs, each of which can hold 1.5 tons of goods, leased to

MNCs in diverse industries including the rubber and tire, food and chemical industries.

Major customers include key tyre and automotive manufacturers, chemicals and juice producers,

and general merchandisers. Goodpack IBCs are used in over 70 countries and more than 5000

locations worldwide, and the operations span the globe including Africa, Asia, Europe, Middle

East, North and South America and Oceania.

Goodpack, with the world's largest fleet of over 2.6 million Intermediate Bulk Containers

(GoodPacks), is principally engaged in the business of renting its patented, multi-modal,

returnable metal box system called GoodPacks.The company has a worldwide presence and

through its global network of subsidiaries and regional offices, provides comprehensive services

of delivery & collection of the GoodPack and technical support to all clients globally.


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PRODUCTS LEASING SOLUTION

TRIP RENTALUnder the trip rental agreement, the customer rents the IBC on a per trip basis. The rental period

of a trip is based on the start of the Good pack IBC delivered to the customer's pre-specified

location till the pickup of IBC by Good pack at the customer's consignee.

TERM RENTALUnder the term rental agreement, the customer rents the IBC for a period of 1 year or more.

During the rental period, the customer is free to use the IBC in any location according to their

business requirements whilst being responsible for the maintenance of the IBC. Upon the expiry

of the rental period, Good pack will pick up the IBC at the location pre-specified by the customer

at the start of the leasing period.

POOLING CONCEPTS

As an alternative to purchasing returnable packaging, provides a pooling service where

packaging and logistics are offered at a daily rental fee. The pool is monitored through a web-

based application run by Logistics. The packaging circulates in a closed loop so no company in

the link will face problems with either unnecessary packaging or investment in physical units.

Another major advantage is that hidden costs will be visible and the total cost lower.

The company offers both standardised and customised pool solutions. The standard pool can be

provided all over india and customers can be found in many industries. There are also

customised pools with tailor-made packaging solutions for customers who do not find standard

packaging material suitable for their logistics flows.


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COMPARISON AMONG PACKAGING COMPETITORS

S.NO DESCRIPTION FLEXOL CHEP GOOD

PACK1 Type of products

Re Usable Containers

Green Pallet

Foldable Metal

Container

Wooden palletsPlastic palletsImport pallets/export palletsAviation pallets

Container

Bins

2 Pooling Service Providing CHEP have been providing

for a long period

Not

providing

3 Experience 2.5 years 50 years 23 years

4 Services Domestics Global Global

5 Reverse logistics Yes Yes Yes

6 Contract Yearly According to demand Yearly

7 Maintenance Yes Yes Yes

From the above comparison made shows that CHEP is the best competitor among

the packaging competitor
http://www.chep.com/Pallets/Wooden_pallets/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Import_Export/http://www.chep.com/Pallets/Aerospace/http://www.chep.com/Pallets/Aerospace/http://www.chep.com/Pallets/Import_Export/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Wooden_pallets/


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NEED OF THE STUDY

One of major important work in exporting the products is packaging. It is

necessary to do right packing for the right product in order to avoid environmental

hazards and to deliver the product to the customer as it is recquired. It is important

to analyse the packaging quality, supplier and the cost incurring. This study

focusses on analyzing various aspects of packaging material.


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OBJECTIVE OF THE STUDY

To study the current Inbound logistics operations at Ashok Leyland. To understand and analyze the current packaging operations Cost and competitive analysis on Packaging operations pertaining to AL Profiling of the Packaging vendors


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SCOPE OF THE STUDY

The scope of this project is to study the existing method of packaging system in Ashok Leyland

hub at Ambattur. This research helps to suggest alternative package to better of space utilizationand avoid the maintenance of the packing equipment. Improve CBM & Eco friendly packaging

mode.


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RESEARCH METHODOLOGY

INTRODUCTION:

Research methodology is considered as the nerve of the project. Without a proper well-

organized research plan, it is impossible to complete the project and reach to any conclusion.

The project was based on the control of organizations inventory. The main objective of survey

was to collect appropriate data, which work as a base for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research problem.

Research methodology not only talks of the methods but also logic behind the methods used in

the context of a research study ant it explains why a particular method has been used in the

preference of the other methods.

The objective of present study can be accomplished by conducting a systematic collection

of information. The market research is the systematic design, collection, analysis and reporting

of data and findings. This study complies the help of secondary data. The secondary data are

collected with the help of relevant books, journals, company documents and internet.

RESEARCH DESIGN:

The research design used for the study was ANALYTICAL in nature.

Analytical research takes information that has been gathered and looks at what it shows such as

trends. Analytical Research has strong ability in performing sophisticated stastical analysis and

interpreting their findings within the research context. Our findings are based on well-designed

and appropriate techniques providing well supported findings adequate for answering complex

research questions, planning, decision support, and informative for policy making. We are also

experienced in large quantitative and qualitative projects management, ensure that your project

will be delivered within time and budget.


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1.9.1 ANALYTICAL TOOLS:

COST ANALYSIS


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COST ANALYSIS

The analysis made in the above table shows that crate is the more cost effective than carton

boxes.

Points to note:

The existing packaging cost incurred in carton box is 1500 for 50 trips but in crate thecost incurred is only INR 1373 which we saves INR 127 for a month. The expected

life of crate is more than the carton box.

The expected cost of the crate per trip is calculated using the price of the crate andexpected number of trips. Finally the cost of packaging is calculated by using cost of

crate per trip.

Bin type Dimension Rev. log cost Cost per bin per trip

Total cost per

bin per trip

S 300*200*100 0.63 9.61 10.24

A 400*300*120 0.72 12.13 12.85

B 400*300*140 0.9 15.79 16.69

C 400*300*220 1.26 17.15 18.41

D 600*400*220 1.8 33.66 35.46

Bin size Carton boxprice(INR)

Crate-(14403)

rate(INR)

No.of timesusing per month

Saving permonth

Savingper

annum

300*200*100 30 27.45 50 127.5 1524

400*300*120 47 36.50 60 630 7560

400*300*140 52 41.65 55 569.25 6831

400*300*220 59 45.75 65 274.5 3294

600*400*220 65 56.95 70 284.75 3417


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Key Takeaway:

Depending on the business requirementthe packaging solution needs to be adopted as below -

a) For shorter distance and long-term association either supplier or AL can invest in PlasticCrates

b) For longer distancesit is advisable to deploy rental concept depending on the feasibilityof reverse logistics and cost factor.

c) If cost is the criteria we will be compelled few times to use carton boxes for packagingmode.


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ALTERNATIVE PACKAGING MATERIAL SUPPLIER PROFILE

S.NO SUPPLIER

NAME

DETAILS TYPE OF MATERIAL TURN

OVER

ADDRESS CONTACT

PERSON

1 Chep india

pvt ltd

9176646680(044)28256052

Wooden pallets,Plasticpallets, DisplaypalletsImport pallets / exportpallets,Aviationpallets,Automotive pallets

400 cr No 6/1 1st Floor, Opp

Sankara

Nethralaya, Pycrofts

GardenRoad, Greames

Road, Chennai6

Mr. Gaurav

Kapoor

2 Good pack

india pvt ltd

Tel: 91-22-4151-

7800

Containers,Bins

(MB5)product code

50-100

cr

704,7thfloor Mayuresh

chambers Sec 11 CBDbelapur Mumbai-400

614,india

Mr.Mahendra

Mahajan

3 Flexol

packaging

pvt ltd

Phone: 044-

26790933 /

26790932

Foldable Mesh Container

Re Usable Containers

FoldableMetalContainer

50L #183/A,3rd Floor,MountPonamalle High Road,

Kattupakkam, Chennai600 056.

Mr.Madhavan

M. C.

4 M.M carton

boxes

09953353347 cartons 65L Mr.Nagoor

Gani

5 Lion pack 9884788725 CartonBox

Manufacturers,PrintedBox 45L

161/146-D, Behind PadiShivan Temple, RajaStreet, Padi, Chennai

Ramya

6 G.J.Traders 9841594819,9841594817

wooden boxes ,plywoodboxes,corrugated boxes

New-17 Old-9, 2nd

Avenue,AshokNagar,

Chennai-600083

7 S.R.Enterprises

Manufacturer,Supplier

(91)8377802909

corrugated boxes withpartition,plain corrugatedbox,Wooden and Plywood

45L

3/7Reddy Street,ICrossStreet,Athipet, Ambattur

IndustrialEstate,Chennai-58

Mr.A. Sekar

8 Ever shinewood

packagingpvt ltd

9994192249 wooden pallet, wooden box 35L 93-135,3rd cross sipcotindustrial

park,amingikarai,chennai
http://www.chep.com/Pallets/Wooden_pallets/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Import_Export/http://www.chep.com/Pallets/Import_Export/http://www.chep.com/Pallets/Aerospace/http://www.chep.com/Pallets/Aerospace/http://www.chep.com/Pallets/Automotive/http://www.chep.com/Pallets/Automotive/http://www.chep.com/Pallets/Aerospace/http://www.chep.com/Pallets/Aerospace/http://www.chep.com/Pallets/Import_Export/http://www.chep.com/Pallets/Import_Export/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Display/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Plastic_pallets/http://www.chep.com/Pallets/Wooden_pallets/


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KEY LEARNINGS:

ALAU HUB OPERATIONS

Milk Run collection Warehouse operations Packaging standards Transportation & Export operations


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CONCLUSION

This research help to best alternative packaging solution and providing for efficient supply chain

and reduction in material damage, maximum utilization of space. Helps to identify the rightvendor as per QCD (Quality, Cost & Delivery).

project report - purushottam (2)

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