A PROJECT REPORT ON “WAREHOUSING & DISTRIBUTION IN SUPPY CHAIN MANAGEMENT” AT

Submitted in partial fulfillment of the requirements for award of “Post Graduate Diploma in Materials &Logistics management”
SUBMITTED TO: UNIVERSITY OF PUNE SUBMITTED BY: GANESH M. MOHITE PGDMLM (2010-2011)

SINHGAD BUSINESS SCHOOL, PUNE.

ACKNOWLEDGEMENT

Thanking is formality and sometimes a necessity, nevertheless an essential part of any project report. The list of expression of thanks no matter how extrusive is always incomplete and inadequate. This acknowledgement is no exception. One of the best parts of writing a project report is the opportunity to thank those who have contributed to it. This project report has been made possible through direct and indirect Co-operation of various people. I specially with to acknowledge the following people who reviewed the project. Thank for the most perspective and helpful comments. I sincerely thank to Prof. Santosh Singh for his support and valuable guidance in reviewing the project form time. I also express my gratitude to my friends who helps me throughout the project.

GANESH M. MOHITE.

PERFACE

Summer training is an integral part of our academic curriculum. During the training, a student gets an opportunity to understand the practical aspect of theory. Training makes the concept clearer. This project report is the outcome of the training that I have undergone at SAFXPRESS PVT. LTD. for the partial fulfillment of Post graduate

Diploma in Foreign Trade. The topic allotted to me by the company is “WAREHOUSING & DISTRIBUTION IN SUPPLY CHAIN MANAGEMENT”. The project emphasizes on the warehousing and distribution in supply chain management done by the company. I have tried to my best to make a good report. However; no one can claim perfection in its entirety .So I apologize for the discrepancy, if any, crept in. Preparation of project requires perseverance, initiatives, proper guidance and direction. So it is mandatory to take the aid of various departments.

TABELS OF CONTENTS

Sr. No.
1 1.1 Company profile 1.2 Type of business 1.3 Safexpress services 1.4 Future expansion 2 2.1 Meaning 2.2 SCM by Robert Handfield 2.3 Components of SCM 3 Dabbewalas of Mumbai 4 5 6 7

Contents
Introduction

Page No.
1-14

Supply Chain Management 15-20

Case Study 21-27 Warehousing FQA’s 32-38 Conclusion 39 Bibliography 40 28-31

1

1 INTRODUCTION ➢Company Profile ➢Types of Business ➢Safexpress Services ➢Future Expansion  Company’s Turnover & Achievements .Chapter .

is transforming its business strategies and new initiatives into opportunities for future growth by focusing on three key aspects – • Innovation • is more than just a buzz word for us. Baxi & Co. . At J. our employees enhance their self-esteem vis-a vis our business partners and associates. is out of its purview. M. The future plans are focussed on consolidating the existing activities and developing other shipping related areas as well. The endeavour to constantly better the best is a continuous driver to achieving improvements in the way we think and act. It is our way to translate lateral thinking into actionable processes that will contribute to how we improve on existing techniques and provide value-added services to our customers. M. Baxi & Co. J. The Company has a strong presence in most of its business lines and leadership in several of the shipping support services. most efficient and professionally managed Shipping Agency House in India. J.Company Profile Founded in 1916.. The steps could be simple and progressively incremental. M. every employee stands committed to deliver with diligence a result oriented performance that contributes synergistically to the overall growth of the organization through customer satisfaction. is the largest. M. In being committed to goals and achieving them. Baxi & Co. It means a complete dedication to our areas of functional responsibility and beyond. • • Commitment • • Commitment is striving to meet the current as well as future needs and expectations of our customers. Baxi & Co. The process of innovation is all encompassing and no area of activity in J.

Baxi & Co. High level of confidence among Clients and Principals About 2000 experienced professionals and specialists nationwide. . At J. ISO 9001 . Commitment and Performance. HISTORY MISSION TYPE OF BUSINESS . Modern infrastructure facilities provide comprehensive logistics support. Consistency in quality of services offered and total commitment to our clients. Award winning performances in most business activities. Wide range of maritime logistics services. We encourage our employees to set stretchable yet achievable goals and provide them with all the means to meet and even exceed expectations. Nationwide network of own offices at 56 port & inland locations. A professionally managed Company offering specialized maritime services to Ship owners. Exporters and Importers. Competitive Advantage • • • • • • • • • • Strong brand image in the maritime domain. Corporate Performance Management takes into consideration the integration of performances of various measurable attributes that are responsible for the growth and sustainability of an organization. Principals.2008 Certification by DNV.• Performance Performance emerges out of commitment. Performance means measured steps to profitable growth. M. unmatched in the industry. we ensure mutually beneficial growth through customer satisfaction. equipped with round-the-clock Communication Network. Through Innovation. we measure performance on a continuous basis and set benchmarks on par with the best in the industry.

Special arrangements include handling of passengers.M. Dredgers. passenger handling companies. LPG. We offer services to vessels at all major and minor ports on the east and west coasts of India. Break Bulk Liner vessels. ➢ AGENCY SERVICES FOR CRUISE & VISITING NAVAL SHIPS Armed with years of experience and expertise. .SERVICES OFFERED BY J. We are also active in the bidding process of developing new ports. related government agencies. notably at Bhavnagar & Mumbai. Car carrier vessels. We offer value-added services as Owners Protective Agents and also Ship Lay-up Services at various port locations.a measure of their confidence in our abilities. These include: Tankers (VLCC/Crude/Products). LNG & Ammonia carriers. We offer turnkey offshore and shore based support facilities for major international & national clients in the oil and gas business sectors. as well as. Container vessels. Offshore & onshore rigs. heavy lift cum submersible vessels. The scope of our services comprehensively covers all requirements of the vessel. over 200 national and international Principals avail of our Agency services . naval personnel both for embarking and disembarking operations. the Indian Navy. a separate cell has been established to handle containers at all major ports. Supply vessels and helicopters. tourist bureaus. ➢ CONTAINER TRANSPORT MANAGEMENT With most of the liner cargo moving by containers. Lash vessels. our professionals and Master Mariners are fully geared to handle all types of cruise and visiting Naval ships at any port in India. crew. BAXI & CO. terminals & jetties at other locations as well. Cruise vessels. ➢ SERVICES / SHIPPING AGENCY We handle over 6000 vessels per annum at various Indian ports. Bulk Cargo vessels. We maintain close liaison with port authorities. Container Freight Stations and Inland Container Depots are equipped with our own sophisticated equipment such as Top Lifters and Trailers. Currently. Naval vessels.

hydro-excavators. M. is India's first privately owned company to run its own terminal in the port sector in India. M. thereby involving multi-modal transport operations . Jamnagar since 1998. The state-of-the-art own equipment. specializes in professional logistics services for a wide range of project equipment including Heavy Lifts and Over Dimensional Cargo (ODC) on a turnkey and door-to-door basis which includes sea freight and inland transportation from the manufacturing facility to the project site. ➢ PROJECT LOGISTICS DIVISION The Project Logistics Division of J. The Division also offers simulator training and “hands-on” training to experienced crane operators of other organizations to hone their skills. erection and fabrication assignments.sea. The training comprehensively covers all aspects of crane operation. The Division is SAP enabled for all its operations and extensively uses AUTOCAD for detailed planning of logistics for movement of Heavy Lifts & ODCs. includes a range of telescopic cranes. J. road. forklifts and other specialized equipment that are available on contract. The Division has an added strength in providing Simulator based training and on-site training to hone the operational skills of its personnel to perform challenging tasks with efficiency and total safety. rail and river. all terrain cranes. EQUIPMENT & TRAINING DIVISION The Division provides services to clients by undertaking engineering.These facilities are also available to fresh crane operators as well. ➢ ENGINEERING.➢ PORT DEVELOPMENT & TERMINAL MANAGEMENT J. In 2003. the first container terminal at Visakhapatnam port was set up and is now fully operational. Baxi & Co. Baxi & Co. The project logistics involves detailed planning and scheduling to contend with the exigencies of terrain. ➢ TANKER OPERATIONS . sourced from reputed foreign and Indian manufacturers. Baxi & Co. is India's first privately owned company to run its own terminal in the port sector in India. It was developed a Bulk terminal at Rozi. The Division is the single source of a range of comprehensive value-added services necessary for the efficient and safe transport of project cargo . distances and environment. Jamnagar since 1998.an advantage for our clients. M. It was developed a Bulk terminal at Rozi.

Freight Brokers and Chartering Agents and are hence in a position to offer our services to Indian and foreign clients. Cochin. we offer freight forwarding as a specialised service to both importers/exporters with full responsibility of handling the import/export function.A separate tanker cell with experienced personnel handles a large number of tankers at various ports such as Mumbai. This cell is fully geared to handle all types of tankers carrying crude. Haldia & Vadinar. Dahej. transport. We are geared to provide comprehensive multimodal service on a point-to-point basis using various modes of transport. Ennore. These services include warehousing. including MV Disha and MV Raahi. Paradip. Dabhol. Mormugoa. customs clearance and other related activities. Kandla. chemical products. clean petroleum. Chennai. Hazira. FUTURE EXPANSION . we offer quality services and a seamless network of international logistics that delivers goods as desired by the clients. ➢ INTERNATIONAL FREIGHT FORWARDING With our excellent all India network and links to overseas forwarding partners. Tanker operations from large mother vessels to smaller tankers are carried out under expert supervision. ➢ WAREHOUSING & FRIEGHT STATION With modern infrastructure at our disposal. Presently we handle the 1st and 2nd LNG ships operating in India. We have the advantage of being licenced Custom House Agents. Visakhapatnam. LPG and LNG. Mangalore.

but hires them through its network of 59 vendors.5 billion) in 2006-07. the company's turnover is likely to touch Rs 1. A group company.000 crore (Rs 8-10 billion) in five years to expand its operations on the back of the boom in manufacturing and retail activities in the country. The company expects similar growth this year as well. vendor management services. according to Jain. The company was planning to strengthen its presence in the air cargo segment by taking three Boeing-737 cargo aircraft on lease. told reporters at the CII Logistics 2007 summit in Chennai. raw material management and finished products storages at 32 locations across the country. Pawan Jain.000 sq ft warehouse in Chennai. the warehousing capacity of the company will grow to 10 million sq ft in the next three years from the current 3 million sq ft.Logistics services provider Safexpress plans to invest Rs 800-1. It already operates a 80.000 crore (Rs 10 billion) by 2010. The company is also establishing a 3 lakh sq ft logistics park near Chennai at an investment of Rs 35 crore (Rs 350 million). These would cover five cities in the country by the next financial year. Each park will come up on an area of 25-30 acres. As a result of the expansion. The company expects to fund its expansion through internal accruals and debt as it claims to have strong bottom-line and cash reserves.000 vehicles. . Through the expansion programme. chairman and managing director. The privately-held Safexpress has been growing at 35 per cent and posted a turnover of Rs 450 crore (Rs 4. Safexpress intends to set up logistics parks comprising warehouses. has already completed around 70 per cent of the land acquisition. which is into the realty business. Safexpress has also placed an order for 380 trucks to add to its current fleet of 3. The company doesn't own the vehicles.

implementing bar-coding to prevent spurious drugs and offering solutions as per regulatory norms like GDP. they are investing heavily in infrastructure development and will soon be coming up with 32 logistics parks and will be adding seven million square feet of warehousing capacity. Chairman and Managing Director. With more than than 100 percent customer retention rate Safexpress has always given due importance to the demands of their customers. Safexpress has been at the helm in harnessing and synergising the needs of the retail industry for the growth of the economy. along with managing the logistics channel end-to-end from distribution channels to pharmacy or patient level. US FDA.HEALTHCARE SEGMENT It is one of Safexpress's special focus area which contributes 16 percent of the revenue." With a view to provide customised logistics services for booming retail industry Safexpress also sponsored the ninth Marketing and Retail Conclave. We would be offering specialised logistics solutions to the rural healthcare. We have successfully managed to gather the required inputs and the coming period will see us roll out these plans. The investment is planned for a total of Rs 1000 crore in infrastructural development in the next three years. Vineet Kanujia. we will be providing single window solutions and. "We have plans for expanding our specialized logistics product range. Apart from offering our multi-modal services. This range would be specifically designed for the healthcare industry after thoroughly analysing its needs. "The idea behind sponsoring this conclave was to bring the retail and logistics industries closer. customised pharma and cold warehouses pan-India. says. Pawan Jain. Safexpress said. MHRA and GCCDP. The conference saw the presence of leading retail players from all across the world. Safexpress. General Manager Marketing." TURNOVER . Aiming at expansion. packaging solutions.

Safexpress Pvt. he said. Mr. and also distribute consignments. 2008: ‘Logistics Guru’ and CMD. These parks will come up in 32 locations across the country.The company hopes to double its turnover to Rs 1. In three years. September 4. which has grown into one of the leading logistics and supply chain management companies in India was also awarded the ‘International Business Excellence Award’ for the ‘Best Business Enterprise’ at the same platform organised at Hotel Grand Sukhumvit. raw material management. ACHIVEMENTS Safexpress wins ‘International Business Excellence Award 2008 Safexpress CMD. Thailand. finished products storages. The prestigious award was presented in a ceremony proceeded by a seminar on ‘The Global Indians’. It expects a similar growth this year. he told reporters on the sidelines of CII Logistics 2007. Ltd. It will set up logistics parks comprising warehouses. Mr Jain said. His entrepreneurship venture.000 crore by 2010. The privately-held company has been growing at 35 per cent and posted a turnover of Rs 600 crore in 2007-08. By Sofitel at Bangkok. Mr. Safexpress will add 7 million sq ft of space to its existing 3 million sq ft. Safexpress. The award was given in recognition of the . Pawan Jain was conferred with the ‘Bharat Gaurav Puraskar’ for the ‘Best Business Leader’ by the Institute of Economic Studies (IES) this week. vendor management. Pawan Jain conferred with the ‘Bharat Gaurav Puraskar’ by the Institute of Economic Studies Mumbai. EMPLOYEES TURNOVER At present there are 2500 employees in safexpress but they are planning to expand there number of employees in future.

Safexpress is India’s No. IES has been actively involved in providing information to its members on the critical developments taking place on the various economic fronts.The award was presented to Mr. The company offers the best and the most innovative solutions for all SCM and Logistics requirements. security and timely services and promise to continue in delivering the best. Jain by the former Deputy Prime Minister of Thailand. We have always ensured quality. In present day. CMD. It seeks to provide expert advice on the various facets of Indian economy by way of in-depth study and research.” This award ceremony was a platform for honoring Indian entrepreneurs and enterprises. Courtesy their wide range of quality services. Korn Dabbaransi. It is indeed a proud moment for everyone associated with Brand Safexpress. About Safexpress. Their services are totally customized as per the demand of different segments of the business industry. Safexpress achieved an annual turnover of Rs. Safexpress has set a benchmark in SCM standards and redefined the functioning of Indian Logistics Industry. Pawan Jain with respect to bringing innovation. ‘Logistics Guru’. Dr.achievements of Mr. Growing at a phenomenal rate of over 30 % in the last couple of years. IES is the most esteemed economic institution of the country. 500 crores in the FY 2006-07. The company is targeting a turnover of Rs. We are happy that our relentless efforts have been recognized in the industry. . We are humbled by this adulation. 1000 crores by the year 2010. Safexpress said “Both these prestigious awards mean a lot to us. 1 Supply Chain and Logistics Company. Pawan Jain. On this grand occasion. Mr. excellence and quality in the field of Logistics. it has come to epitomize excellence in economic sphere. who have been consistently demonstrating Business Excellence as per International standards.

Handfield ➢ System of Supply Chain Management ➢ Processes of Supply Chain management .CHAPTER-2 SUPPLY CHAIN MANAGEMENT ➢ Meaning ➢ Components of Supply Chain Management ➢ Supply Chain Management: Robert B.

and logistics management activities. That is why firms are perceived to have more systemized activities related to movement and storage of goods so as to make them available at a short noticed with the lower inventory level.SUPPLY CHAIN MANAGEMENT Since. information flows. the beginning of the 1990s. parts purchasing. mainly due to the liberalization policy of various economies all over the world. Godrej locks – a division of Godrej & Boyce Company – has to reduce its order to delivery cycle from there weeks to only three days. All this happened because of higher and systematic. business processes and information technologies for improving the planning. Activities across organizations. and revolutionary innovation in the field of science and technology. conversion. product assembly to product distribution. SCM is supported by modular software applications that integrate. Computers giant Hewett Packard has cut the duration of its cycle to deliver to customers in India from the us by one third. there has been a paradigm change in the business scenario. information technology and communication infrastructure has resulted into a continuous acceleration in the magnitude competition. For instance. from demand forecasting. inventory control. procurement. from 37 days. manufacturing. Supply Chain Management the new and more Indian companies are jumping onto supply chain management bandwagons for the completive edge. To sustain themselves in such an erratic environment. to 10 days. firms need to have door competency and productivity. Supply Chain Management is business system of enterprise strategies. execution and collaboration of material flows. Particularly. financial flows and workforce flows in the supply chain. . product planning. Association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing.

In some case the customers bypass the traditional supply chain and interact directly with the manufacturers for example in case of online purchase of computer from Dell Computers. Supply Chain Management integrates supply and demand management within and across companies. Retailer works towards fulfilling the demand. ➢ Manufacturers: Retailers or distributors often place their orders with demand. Dell. customers directly place an order with a manufacturer i.which can be suppliers. ➢ Customers: Customers are the sole purpose of existence of any business. In . In essence. an order with preceding link in the supply chain to replenish its depleting inventories. with retailers or supermarket. Typically the orders are initiated by the retailers but. either through inventory or through placing fresh orders with preceding link in the supply chain. Website or customers interact telemarketing firm can also act as an interface for the customer. ➢ Retailers/Distributors: Retailers interact with distributors or manufacturers by their respective directly to fulfill the demand created Retailer places customers. Manufacturers usually follow either push based strategy or pull based strategy. in some case the manufacturers monitors supermarket’ stocks and automatically initiates reorders. intermediaries.Importantly. Wal-Mart and P&G using continuous replenishment program is one example.e.third-party service providers andcustomers. it also includes co-ordination and collaboration with channel partners. retailers/distributors Based manufactures on decide their the production manufactures after gauging the demand targets and from schedules.

push based strategy production decisions are based on long-term forecasts thus making schedules. Reverse Logistics is also referred to as “Aftermarket Customer Services”. In a pull-based strategy production is driven by customer demand rather than forecast thus allowing for greater flexibility in the production. effective inbound flow and storage of secondary goods and related information opposite to the traditional supply chain direction for the purpose of recovering value or proper disposal. implementing and controlling the efficient. Information flow and technologies like Point-of-Sales ( POS ) data play a significant role in this strategy. REVERSE SUPPLY CHAIN ➢ Reverse Logistics is the process of planning. Just in time is one such technique. ➢ Suppliers: Manufactures interact with suppliers to make sure that they have all for manufacturing. anytime money is taken from a company’s Warranty Reserve or Service Logistics budget. In other words. But the question arises is the production schedule reflective of the correct demand? Manufacturers works in close coordination with suppliers in order to reduce high inventories. . Raw material orders the available materials placed with it more difficult for the manufacturers to adjust their production suppliers are more precisely determined as they are based on production schedule. that is a Reverse Logistics Operation. which manufacturers use to achieve this objective.

COMPONENTS OF SUPPLY CHAIN MANAGEMENT Our Global Supply Chain Management practice focuses on four key solution areas:➢ Adaptive Execution. ➢ Supply Management. rapid-response engine and response from procurement to We transition your supply to increase visibility fulfillment and replenishment. capabilities. with security that offer requirements tracking. chain into a high-speed. purchasing. ➢ Customer-Supply Synchronization. Our technologies and contracting. and process and policy documentation . ➢ Securing Supply Chains. low-cost. invoicing and analysis. SCM and increase with you’ll sales see and marketing. and speed container alert inspections with Comply solutions analysis. high sales availability eliminate rush and and low customer costs and Integrate management that can shipments back-orders. procurement. collaborative business processes improve sourcing.

A SYSTEM OF SUPPLY CHAIN MANAGEMENT Supply Chain Management is a social or soft system which has goals. Supply Chain Software is module based application. Business Processes – Business processes of supply chain includes supply chain planning. UNIX is the most common operating system for running SCM software. execution and collaboration and operational control. components. Components of SCM System – The components of a supply Chain System consist of 1. 2. manufactures an distributor. Goals of SCM. processes and boundary.  To increase sales  To improve the coordination and the collaboration with suppliers. SCM Software and Hardware – The core of an SCM System is SCM software.  To reduce inventory cost. Users – . Supply Chain Software and Hardware. Each software module automates business activities of a functional area in the Supply Chain. Supply Chain Business processes and Users of SCM System.

your goods and services you or verifying create the products and receiving. invoicing and payment collection. manufacture It involves or price assembly negotiation. Distribution involves company. ➢ Return – Return and refund are important parts and also the problem pats of management. shipments. suppliers. ➢ Boundary of the SCM systemsThe boundary of a SCM system is he boundary of extended enterprise which includes the supply chain consumers. ➢ Manufacturing and Assembly – Raw components are assembled into final products or raw materials are manufactured into finished goods. distributors and customers. Supply chain software systems utilize sophisticated mathematical models for predicating future demand from historical data. partner.The users of SCM systems are workers of supply chain participants at all levels. . PROCESSES OF SUPPLY CHAIN MANAGEMENT ➢ Demand Planning and Forecasting – A critical success factor to supply chain management is accurate demand forecasting. delivering. ➢ Procurement – This is the process of choosing the suppliers that will deliver the need your to services. ➢ Distribution – This is the process of delivering your products or services warehousing.

And their Operations ManagementAn Analysis : The ubiquitous Dabbawalas also known as tiffinwalas who provide a lunch delivery service in Mumbai have been in the business over 115 years.9999 per cent correctness – which means if the organization delivers six million tiffins. a 99. This subject mainly dwells on the examination of their operations and achievement of almost zerofault performance including their problems and prospects in this changing environment of their business. it will not misplace more than one or just one tiffin in six million transactions. distribution and logistics management. and . they work as a team to achieve a common goal with a cent percent accuracy. Their mode of operations have been studied by global management gurus and business schools. 2) To study how Dabbawalas of Mumbai perform an amazing role in procurement and distribution of tiffins to their clients from which one can learn many critical issues of supply chain.e. Forbes magazine conducted a study and rated them a Sigma 6 organization i. In 1988. this study has been undertaken to access their group efforts and managerial efficiency. The main objectives of this subject are : 1) To examine how the Dabbawalas operate. Considering the unique achievement of Dabbawalas in the field their operations.CHAPTER-3 CASE STUDY DABBAWALAS OF MUMBAI CASE STUDY: DABBAWALAS OF MUMBAI 6 Sigma Dabbawalas of Mumbai.

Recognizing the need.00. Mahadeo Havaji Bacche. There were 100 Dabbawalas increased. a migrant from Pune district ( North Maharastra ) started this lunch delivery service.3) To explore the problems and prospects of the Dabbawalas’s services in the light of changing environment. Ghatkopar etc. eople came from different states and form different communities migrated to Mumbai for work. The trust had branch offices in different parts of the Mumbai sucha s Chembur. Their Glorious Past Performances: The origin of the Dabbawala’s lunch delivery services dates back to the year 1890. Mahadeo recruited young men from the villages neighbouring Mumbai (generally Pune district and adjoining areas ). who had no formal education or technical efficiency to get work in the city. Levels of Management: . At that time. At working place there were no canteens or fast food centres and they did not bring their lunch from home. 5000 Dabbawalas are delivering around 2. Dadar.000 lunches per day.00.000 lunches per day. tastes and preferences which could only be satisfied by a home made meal. Mahadeo started this lunch delivery service. In 1950. Dabbawalas were delivering 1. After the death of Mahadeo they became organized in 1954 and formed Nutan Mumbai Tiffin Box Suppliers Charity Trust. Besides. In this business. In 2005. different communities had different food habits.

The Governing Council ( also called as Panch Committee ) holds meetings on the 15th day of every month.000 in 2003. The trust collected Rs. This was Rs. The trust provides various services to its members. At these meetings. 5. he may work as long as he is physically fit. Newcomers who want to become Dabbawala are initially hired on a salary. level. Each gouup serves its own customers without hampering the interests of other. To become profit sharing member of the trust.m.000 after meeting all expenses like railway monthly ticket. Team its President. viz. from this welfare fund. Each Dabbawala is guaranteed to receive a monthly income and employment for life. rent for handcarts. new Dabbawalas needs to pay a certain amount to the trust. 15 p. 300 p.000 to Rs. 6. Mukabams leaders supervision 3) Dubbawalas – Lower level. .The trust is a co-operative body having three levels of management. The Dabbawalas are organized in supervise to sorting Dabbas ( tiffin box ). to settle disputes.m. Each goup is financially independent but work together in the delivery process. crates etc. for their services. to keep records of payment. for each member to maintain a welfare fund. 30. 250 to Rs. Total monthly collection is shared equally among the members of the goup. educations expenses for children. Each Dabbawala receives Rs. to seach new customers and train new Daddawalas. including loan facilities for emergencies. Dabbawalas discussed their problems and business policies. after evaluating their performance they are offered membership (shareholders) of the trust and assigned to one of the groups. health care etc. As there is no retirement age. Mukadams and Dabbawalas are entitled to attend the meetings. or Secretary ) – – Top Middle level. 1) 2) The Governing ( Council. Now the Dabbawalas are charging cutomers Rs.

the Dabbas are picked up and return to the customer’s house or caterer in a reverse operation. Every customer who avails himself the service is given a aluminum container (called Dabba-contains 2 or 3 containers. This delivery system has been compared to a relay race. curry and salad) with appropriate code painted on the lid. often carrying rice.). creed or religion) at their working places (offices/factories) and return empty boxes to customer’s houses or caterers. Then he hands it over to a Mukadam who sorts it and arranges them in crates or trays. The process runs as follows: A Dabbawala picks up the tiffin box with cooked food from a house or caterer early morning (generally between 8:30 a. then transports it by cycle or handcart to the nearest railway station. The Dabbas are changed hands at least four or five timers before they reach their destinations during the delivery process. The Dabbawalas have developed their unique coding system. The food and the Dabba both belong to the customer. The Dabbawalas deliver home-cooked meals to individuals (irrespective of their caste. chapattis. Another Dabbawala then transports it in the suburban train vendor compartment to the railway station nearest to its destination where another picks it up and delivers it to the ultimate recipient by 12:30 p. The code is painted on the lid of the Dabba. The codes help each Dabbawala to identify and fulfill his responsibility. .m.m. Even housewives occasionally send messages to their husbands in these Dabbas.m. After lunch. and 10:30 a. These codes are understood by the Dabbawalas and no one else. according to the destination.How they operate and work as team: This service is available in every working day and whenever the local trains run in Mumbai & Suburban because it is their primary mode of transportation.

which indicates the originating address & station and the destination station & address. due to heavy rain. They use colours and code markings to ensure faultless delivery. . Several groups are involved in this service. They use both alphabets and numbers to identify Dabbawala. Nariman point. station. 10 represents the area. so it makes our work simple. 11th floor. Their coding system is very interesting. when the rail tracks would get flooded then the service is disturbed. BO indicates Borivili (area) where the Dabba has to be collected from. where the Dabba has to be delivered and 15/A/11 stands for 15th building. then P identifies the name of the Dabbawala. President of the trust said. At monsoon. building and floor. According to their version. while there are thousands of die-hard customers. if the code on a Dabba is “P-BO-10 15/A/11”. For example. it is a longish city where residences are in the north and offices in the south. they use the cheap public transport system which is advantageous to them. Even there is no mixing of vegetarian and non vegetarian Baddas on the same bicycle. Problems & Prospects : The trust faces the cut-throat competition from the growth of fast food centers like Pizza Hut. Raghunath Medge. Mac Donald’s etc. Raghunath Medge claimed “ We generally make one mistake in two months. but their team work is unique and delivery almost flawless due to their effective co-ordination. The trains run every day in a year and there is very rarely any interruption in the service. Dabbawala’s ability to successfully run the service in a crowded city like Mumbai could be attributed to its geography and local train service. “Mumbai’s geography makes it unique. We can’t afford to make mistakes to often or else we will be out of business.

Conclusion of Case Study :The concept of ‘Dabbawala’ comes into picture in one of India’s big and busiest cities – where people can enjoy the fresh homemade lunch every day. They are not night bird. This brings in extra income. Six Sigma quality rating helps the organization streamline their delivery systems. But they receive international recognition after 115 years of glorious service.000 tiffing boxes to factories and offices acroos Mumbai with high labour intensive and with almost zero technology inputs. Every year their business grows by 25. Most people want to eat homemade food in the offices without the bother of having to carry a cumbersome tiffin box. They have started advertising on Dabbas by putting stickers on them.00. Mumbai Dabbawalas deliver mainly during day time. Today.000 to 30. What a wonderful service they .rapid urbanization. the Dabbawala delivers them to offices. But Medge said that food from caterers is still a small segment of the total operation. Till the time people will feel hungry their business will keep growing. But India shifts to a 24 Hours X 7 Days work culture. But there is an increasing number of people who are health conscious and feel that home cooked food suits their stomach and health. Actually they grow annually by about 10%. eliminate errors and achieve a cent percent accuracy. increasing personal transportation and availability of different kinds of fast food have drawn a good chunk of the younger generation away from the home made food. They lose a few customer too each year but are more than compensated with the addition. the tiffin boxes’s network would also work under the moon and stars. Knowing this very issue the trust do not bother about the competition. Even some customers now send water along with their tiffins. Around 8000 Dabbawalas deliver about 5.000 tiffin boxes.

K. So they claim that “our head is our computer and Gandhi cap in the computer cover to protect it from the sun or rain.. Even people of foreign countries (like U. just-in-time management. but Prince Charles was the first famous person who met us. R.2003 that really helped them. It is not just a service but a vocation. supply chain management. Italy etc.provide. Megde said “ Many people talk about us. CHAPTER-4 WARWHOUSING .” The white-capped. team work and problem solving. Hard work and sincerity of Dabbawalas are the two main factors to reach such levels of efficiency with such an untrained work force. Actually the uneducated have an ability to memorize and retain more as opposed to educated who are used to writing down everything. He is our friend. customer service. but it was Prince Charles’ meeting with them in Mumbai in November. People cannot believe that uneducated people can provide such and efficient service. white-shirted Dabbawalas shot the limelight when they were awarded the six sigma rating. They got six sigma rating of highest operational efficiency without using any paper work or computer. Thanks to their personal as well as group efficiency and dedication to their vocation.) are amazed that uneducated Dabbawalas can carry out such type of business so accurately. He encouraged us. He was the first celebrity who visited them. Their main aim is customer satisfaction the trust shows how these illiterate or semiliterate Dabbawalas have mastered the art of logistics management.

They also often have cranes and forklifts for moving goods. importers. the facility must be properly slotted. Effective slotting addresses which storage medium a product will be picked from (pallet rack or carton flow). or sometimes are loaded directly from railways. with no workers working inside. The direction and tracking of materials in the warehouse is coordinated by the WMS. and how they will be picked (pick-to-light. These systems are often installed in refrigerated warehouses where temperatures are kept very cold to keep the product from spoiling. . pick-to-voice or pick-to-paper). They come equipped with loading docks to load and unload trucks. wholesalers. which are usually placed on ISO standard pallets loaded into pallet racks. and also where land is expensive. They are usually large plain buildings in industrial areas of cities and towns. For a warehouse to function efficiently. airports.WAREHOUSING A warehouse is a commercial building for storage of goods. with some over 20 meters high. transport businesses. as automated storage systems can use vertical space efficiently. Warehouses are used by manufacturers. or seaports. Some warehouses are completely automated. The pallets and product are moved with a system of automated conveyors and automated storage and retrieval machines coordinated by programmable logic controllers and computers running logistics automation software. The WMS is used by logistics personnel to improve the efficiency of the warehouse by directing putaways and to maintain accurate in inventory by recording warehouse transactions. etc. customs. or warehouse management system. a database driven computer program. These high-bay storage areas are often more than 10 meters high. exporters.

Warehousing is an age old concept which can be used as sharp tool by original manufacturers to reach out directly to consumers leaving aside or bypassing importers or any other middle agencies or person. The JIT system promotes the delivery of product directly from the factory to the retail merchant or from parts manufacturers directly to a large scale factory such as an automobile assembly plant. This concept reduces the end cost of the product to the consumer and thus enhance the production sale ratio. with the items ready for sale being placed in the bottom parts of the racks and the crated or palletized and wrapped inventory items being usually placed in the top parts. However. with the gradual implementation of offshore outsourcing and offshoring in about the same time period. . necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products Recent developments in marketing have also led to the development of warehouse-style retail stores with extremely high ceilings where decorative shelving is replaced by tall heavy duty industrial racks. Modern warehouses are also used at large by exporters/manufacturers as a point of developing retail outlets in a particular region or country. Traditional warehousing has been declining since the last decades of the 20th century with the gradual introduction of Just In Time (JIT) techniques designed to improve the return on investment of a business by reducing in-process inventory. a warehouse can improve its inventory rotation requirements-. the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains.With a proper slotting plan.such as FIFO (First In First Out) and LIFO (Last In First Out) -. In this way the same building is used both as a retail store and a warehouse. without the use of warehouses.control labor costs and increase productivity.

and gravityflow. Sometimes. drive-thru. •Cantilever Rack: Including structural and roll formed. where transport is available to all other destinations. double-deep. Types of Warehouse Storage Systems Some of the most common types of warehouse storage systems are: • Pallet rack: Including selective. warehouses change from shipping large quantities of goods to shipping large numbers of small quantities of goods. warehouses are still required to store the goods. Simply said. Having a large and complex supply chain containing many warehouses may be costly. . this is a different situation where stores would be ordering large numbers of goods. goods have to be customized for different countries.Internet impact The internet has had an influence on warehouses too. •Mezzanine: Including structural rolls formed. drive-in. goods get a price ticket in the language of the country where it will go. At these continental hubs. Making small adjustments to goods at a warehouse is called value added services. For example. This warehouse should be located at a central point. rack supported. and shelf supported. pushback. However. Since direct contact with customers means many small orders. it is beneficial to have one large warehouse per continent. Internet based stores do not require physical points of selling.

•Industrial Shelving: Including metal. and catwalk. steel. horizontal carousels. robotics. vertical lift modules. •Automated Storage and Retrieval System (ASRS): Including vertical carousels. Chapter 5 FQA’s . wire. and compact 3D. mini loads.

Safexpress can best understand your Logistics and distribution requirements and can offer the most suitable Logistics model and solution to you.000 km. ➢ What is the Network Strength of Safexpress? Safexpress-India’s leading Logistics Company. has more than 550 Locations across India in its network. Safexpress also operates through Air to locations directly covered by flights and to all other locations on a multi modal basis. ➢ How do I Contact Safexpress for Pick-up? Safexpress-India’s Leading Logistics Company. To contact any one of them. has offices across all industrial and commercial towns and cities of India. 24 hours a day 365 days a year.50. please check our 'Contact Us' page and click on Network. has network of more than 550 Locations across India. Safexpress has the largest network coverage across India traversing over 3. Safexpress reaches these locations through its fleet of 3000 vehicles operating on more than 1000 routes. All Safexpress vehicles have all-weather proof containers for safe transit.FQA s ➢ Why Safexpress? Safexpress –India’s Leading Logistics Company is renowned for its domain expertise and experienced manpower in the LSCM sector. please check our 'Contact . every day covering over 550 locations through more than 750 routes operating 24 hours a day 365 days a year . To check whether Safexpress caters to your destination. ➢ Will Safexpress cater to my destination? Safexpress-India’s Leading Logistics Company.

Next. ➢ Does Safexpress operate in Containers only? .to an entire gamut of third party logistics services.Us' page and click on your State to identify your city of origin. statutory compliance and invoicing . Across India you could also contact our Toll Free phone 1800 113 113 & you can also mail Corporate Customer Services Desk at safexpress@safexpress.com ➢ Does Safexpress handle both Domestic and International Consignments? Safexpress. buyers. or click on the first alphabet of your destination to see a list of destinations starting with the alphabet. intermediaries and end users in order to identify time and cost inefficiencies. ➢ What are Safexpress Services? To view our entire bouquet of services in Logistics and Supply Chain. please go to our 'Services' page. For further queries or more customised solution. ➢ What is ILM? Integrated Logistics Management is our 3PL Product that optimises your company’s supply chain. we deploy our unique mix of local know-how. India’s Leading Logistics Company today handles only Domestic cargo. producers. we examine the linkages between your suppliers. you will find all our Services listed with complete explanations. Please mail us atsafexpress @saf express. Here. First. global practices and cutting-edge technology to provide integrated supply chain solutions. These range from specific services such as warehouse management.com or call us toll free 1800 113 113.

The robust design of the Safebox is further reinforced with internal insulation. Broadly major areas of business for Safexpress include IT hardware. ➢ What does Safexpress Carry? Almost every product manufactured. We can consult and provide needful help and assistance but directly might not pack. and inflammable material. We have SAFEBOX for our clients that comes in two convenient sizes: the 17”x17”x12" Safebox carries up to 20kgs of cargo.000. FMCG. 5. which eliminates packaging costs. There’s another outstanding feature built-in to the Safe box that covers an auto insurance for up to Rs. Electrical and Electronic goods. safely and conveniently. Unless specifically required for a customised project Safexpress does not carry in open body vehicles.. Pharmaceuticals. Cash. and Non-Perishable Food Products among many other products belonging to diverse market segments. Barring goods contraband in nature. jewellery. Ready Made Garments. absolutely free of cost. the 16"x12”x 9" Safebox carries up to 10kgs of air cargo. Fabric and Cloth. explosives. imported or sold in India can fall under our purview which requires to reach its destination in time.All the fleet of Safexpress is all-weather proof containers meeting global quality standards. ➢ What about Transit Risks? . Automobile Components & Spares. ➢ What about Packaging? Safexpress principally does not handle packaging themselves..

we cover your valuable shipment against all sorts of transit losses including fire. Safexpress Solution–ILM takes care of everything. ➢ What about Warehousing Risks? As mentioned in the previous answer. damage.com ➢ Does Safexpress offer CFA Services? Yes. shortage. Safexpress –India’s leading logistics company has a special product to offer. Safexpress has an all risks cover . Most importantly our Turnaround Time (TAT) to set-up the infrastructure is very low and also it is cost effective to the entire Supply Chain. etc. We sincerely abide by our corporate philosophy on the subject. Delivery and many other modules from which a customer can pick his requirements.Carrier’s Risk offer. Our corporate CFA is a very customised and scalable solution for Clients who require variety of CFA services at one/many locations. For more details please call our toll free phone 1800 113 113 or mail us at safexpress@safexpress. the customer gets it. Corporate CFA services under. Despatch. On minimal extra charge of Risk Charges. accident. which unburdens the customer of his worries of losses in transit. including warehousing insurance. ➢ What kind of Material Handling Equipment are used at \ Safexpress' Hubs? .Safexpress works and carries on the philosophy of 'Custodians First Carriers Later’. Services range from sourcing.Inventory Management. Warehousing .ILM. If the customer requires it. flood.

Chain Pulleys and Cranes handle consignments which are not possible by smaller equipments to manoeuvre. It might not be out of place to mention here all the hubs of Safexpress are on platform level height. it tells you all the obligations involved. ➢ What are the statutory obligations required for shipments? Statutory obligations in India vary from state to state. please call us toll free 1800 113 113 and customer services desk will help you. Any Logistician will understand and appreciate the essentiality and importance platform level warehouses have for material handling. form/permits.com offers you online tracking of your consignment.The Latest of the material handling equipment are used at Safexpress' hubs to ensure safety and remove Laxity from material handling. By Simply selecting your origin and destination along with planned date of despatch. ➢ How do I locate my material? Safexpress.please visit our online logistics planning tool. For further clarity. By simply selecting your booking origin and destination along with the planned date of despatch. It’s an online logistics distribution planning tool for clients. trolleys. For a check on obligations like documents. It tells you all the obligations involved like number of copies of .Virtual Cargo. You can also mail us at safexpress@safexpress.com ➢ What is virtual cargo? Virtual Cargo is a Safexpress' gift to Logisticians. Equipment including hydraulic hand pallet trucks. octroi /entry tax applicability . fork lifts’ multilevel pallet stackers are used by Safexpress. dock levelers. Simply punch in your way bill number and the site informs you the status of your Consignments immediately. You may download a copy of epod (Electronic Proof of Delivery) for your reference.

A host of other add-on and special offers are being added for our Priviledged Members. Tracking by Invoice. For detailed discussions. . It also confirms you the distance your cargo will travel and the check posts it’ll pass through in its transit. adhesives are handled by Safexpress. so as to plan a pre/postponement of your despatch to realign with your supply chain. please call us toll free 1800 113 113 or send us mail on safexpress@safexpress. For special project please speak with our Customer Service Officers on toll free number 1800 113 113. Service Performance Analysis of Safexpress month on month. various MIS reports on Despatch and Receipt of consignments. It confirms you the expected day/date of arrival at destination by various modes. For these customers our online lounge has been named as Priviledged Members. forms or permits required. ➢ What about Reverse Logistics? Safexpress has special arrangements to offer project based Reverse Logistics assignments.com ➢ Does Safexpress carry Liquid Cargo? Safexpress principally does not carry liquid cargo on consolidation basis. items like pharmaceuticals. However. Through a login/password access a Priviledged Member gets access to a host of services including Multiple Waybill Tracking. octroi or entry tax applicability. We provide direct access for our Priviledged Member to his account manager from safexpress to respond to direct issues. ➢ How can I become a Privileged Member? Safexpress offers special attention and offers value added services to its large volume customers.documents /invoice required.

Safexpress not only offers delivery services on Sunday but also does not charge anything extra for Sunday delivery.com \ Chapter 6 .➢ What is Safexpress' cut off time for pick-ups? Cut off time for pick-ups vary from origin to origin depending on connections. are there any extra charges? Safexpress operates its operations function 24 hrs a day 365 days a year. ➢ Does Safexpress deliver on a Sunday? If yes. please mail us atsafexpress@safexpress. For all other queries / questions. Please check with our customer services officer at the origin station for exact cut off time for pick up and he/she will confirm it to you. Our toll free number is 1800 113 113.

The successful enterprises in this fiercely competitive economy are those which are able to ensure a high level of customer satisfaction and at a considerably low cost. In this era of crumbling economic barriers. At the same time. The strategic role of logistics and supply chain management in this regard becomes vital. it is essential to take into consideration the various factors like the size of organization.CONCLUSION Today we are essentially operating in a global market. and marketing to a core function. span of control. authority and responsibility. Chapter 7 . the customer reigns supreme. but on exceeding them. The focus today is not on meeting the customer’s expectations. While designing a logistics organizational structure. and environmental uncertainty. corporate structure and strategy. it is essential to have a well-defined organizational structure that supports the corporate mission and improves and influence logistics system performance. firms need to follow certain principles of organization. centralization and decentralization of power etc. there have been changes in the logistics organizational structure from being a part of various functions like manufacturing. With the growing nature and scope of logistics and supply chain management in the overall performance of the enterprise over the years. availability of IT infrastructural resources. line and staff relationships. like unity of command. the role of logistics and supply chain management in the overall value-addition activities. finance. To achieve the objectives of logistic and supply chain management.

C.com .com www.BIBLIOGRAPHY SUPPLY CHAIN MANAGEMENT : L.google.com www.logisticworld. JHAMB INTERNATIONAL LOGISTICS : PIERRE DAVID SUPPLY CHAIN MANAGEMENT : SUNIL CHOPRA BROCHURE OF SAFEXPRESS WEBSITES www.safexpress.

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