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LOGISTICS & SCM PROJECT

Company Name : Sealed Air Pvt. Ltd.

Submission By :

Raj Jaiswal - 84

Shruti Mukherjee - 95

Dimple Rajpal -105

Raksha Somani -109

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INDEX

TOPICS PAGE No.

About the company 4-7

Information Management System 7-10

Warehouse Management 10-12

Inventory Management 13

Order processing & Manufacturing 14-17

Suppliers 17-19

Logistics & Transportation 19-22

Conclusion 22-23
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Acknowledgement

We would sincerely like to thank everyone who played a huge part in helping us make this

Project. We have been fortunate enough to get good timely advice and support from a host of

people to whom we shall remain grateful.

We take this opportunity to express our heartfelt thanks to Prof. Shilpa More for her support and

cooperation in assigning us this project work and for her advice and support throughout the

completion of the assignment.

It gives us great pleasure to express our gratitude to Mr. Rajneesh Sharma, Finance Controller, of

Sealed Air Packaging Materials (India) LLP. He was gracious enough to assist us by allowing us

to tour his manufacturing facility, directing us and allowing us to take pictures of his workspace

without any restrictions, and cooperating with us by patiently responding to all of our questions.

The insights he provided us with greatly aided us in finishing the project work.
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About The Company

Sealed Air Corporation is a packaging company known for its brands: Cryovac food packaging

and Bubble Wrap cushioning packaging. Their portfolio of brands has expanded to include the

Autobag, Nexcel, and Sealed Air brands. The product care section of Sealed Air creates

protective and specialty packaging materials for a variety of products, while the food care

division creates packaging for the food and beverage industry.

In 1957, American engineer Alfred W. Fielding and Swiss inventor Marc Chavannes attempted

to invent plastic wallpaper with a paper backing. While the wallpaper failed, Fielding and

Chavannes later realized that what they had come up with could be used for packing

material.Sealed Air was founded in 1960 based on this invention of Bubble Wrap.The same year,

Sealed Air raised $85,000 in its initial public offering.[10] Fielding served as executive vice

president and director of Sealed Air until his retirement in 1987, while Chavannes worked

mostly as a consultant.
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Shortly after a 1998 business restructuring of the global conglomerate W.R. Grace

Company-Conn, the original Sealed Air was merged into Grace subsidiary W. R. Grace & Co.

NY, and the surviving company was named W. R. Grace & Co. Shortly thereafter, this W.R.

Grace & Co renamed itself Sealed Air, the name of the current entity, but now a vastly larger

corporation due to the Grace components. Years later, in 2002, this Sealed Air Corporation was

required to pay W. R. Grace Company-Conn $728 million to settle[11] bankruptcy and fraud

allegations brought against the original merger. T.J. Dermot Dunphy served as CEO from 1971 to

2000.An Oxford University graduate who received his MBA from Harvard Business School, he

became chairman of Kildare Enterprises, LLC in November 2000 after leaving Sealed Air.

During his tenure at Sealed Air, sales grew from $5 million to $3 billion.

William Hickey served as CEO from the year 2000 to March 2013. He previously served in

several capacities at Sealed Air, including COO, executive vice president, CFO, vice president,

and general manager of the Food Packaging Division and the Cellu Products Division.Before

working for Sealed Air, he was CPA at Arthur Young and CFO of W. R. Grace and Company's

Latin American operations.

Sealed Air produced the foam that was ignited in the 2003 Station nightclub fire and has paid

$25 million to victims in various civil settlements.

In March 2013, Jérôme Péribère took over as CEO and President of Sealed Air. He obtained his

business economics and finance degree from Institut d'études politiques in Paris, France. He

previously served as president and COO of Sealed Air before taking over as CEO, and prior to

joining Sealed Air, he worked in several managerial roles with the Dow Chemical Company

from 1977 to 2012.

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Acquisitions

In 1970, Sealed Air acquired Smith Packaging Ltd., which was later renamed Sealed Air of

Canada, Ltd., marking Sealed Air's first international move.In 1971, Sealed Air began marketing

a new product; by laminating the AirCap cushioning to paper, the company now had Mail Lite

padded shipping envelopes.

In 1973, Sealed Air began marketing Ply-Mask, a pressure-sensitive polyethylene film used to

protect delicate surfaces from scratches and the company's first product not based on its bubble

technology. The same year, Sealed Air brought their market to Europe by acquiring 10 percent of

Sibco Universal, S.A., a French manufacturing firm. Over the next few years, Sealed Air bought

out the rest of Sibco and came up with the Sealed Air Solar Blanket.

Acquired in 1977, Instapak foam is an expanding polyurethane foam that comes in a variety of

densities. Used primarily for shipping, the foam-in-bag process molds to the shape of the object

and expands to fill the void space of its shipping container.

Sealed Air acquired Cellu Products Co. and Dri-Loc in 1983, Jiffy in 1987, Sentinel in 1991,

Trigon Packaging NZ 1993, and the Shurtuff Division of Shuford Mills, Inc. in 1993. In 1994,

Sealed Air followed up with the further acquisitions of Hereford Paper and Allied Products Ltd.,

Sup-Air-Pack, Fill Air, and packaging companies based in Norway, France, and Italy.

In 1998, Sealed Air was acquired and merged with the Cryovac Division of W.R. Grace for a

$4.9 billion stock trade, and spun off from the Grace parent holding company as W. R. Grace,

Inc. That corporation changed its name to the current Sealed Air.In June 2000, Sealed Air

purchased Dolphin Packaging for $119 million, to better serve its European customers. In
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October 2011, Sealed Air acquired Diversey Holdings, Inc, until its acquisition by Bain Capital

in September 2017.

In October 2017, Sealed Air acquired Fagerdala Singapore Pte Ltd., a manufacturer and

fabricator of polyethylene foam.

They provide sustainable packaging services to the following industries: -

1. Healthcare & Pharmaceuticals

2. Meat, Poultry & Seafood

3. E-commerce

4. Food service & Food Retail

5. Consumer goods & retail

6. Electronics

7. Industrial and transportation

8. Apparel

9. Aeronautics

10. Agriculture

Information Management System

Enterprise Resource Planning (ERP) software is the only tool the business uses to control its

supply chain and logistics. They used ERP software from Sage Software Solutions Pvt Ltd.

Additionally, their dedicated IT team undergoes regular cybersecurity and best practices training

to reduce the risk of information theft, phishing attacks, hacking, etc. Workshops for
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management are also conducted regularly in which attendance is mandatory for all employees at

the managerial level.

What is ERP?

The integrated management of key business activities, frequently in real time, is known as

enterprise resource planning (ERP). An organization can use ERP to gather, store, manage, and

understand data from a variety of business activities. ERP is commonly referred to as a type of

business management software, typically a suite of interconnected applications. ERP systems

may operate locally or in the cloud. Due to the ease with which information is now accessible

from any location with Internet access, cloud-based apps have increased in popularity in recent

years. On-premise ERP solutions from the past are now viewed as outdated technology.

Using shared databases maintained by a database management system, ERP offers an integrated

and constantly updated picture of key company activities.

ERP systems monitor the status of company obligations such as orders, purchase orders, and

payroll as well as resources such as cash, raw materials, and production capacity. The

applications that make up the system share data with many departments that supply the data,

including production, purchasing, sales, accounting, etc. ERP handles links to external

stakeholders and streamlines information flow between all corporate functions.

How does Sealed Air use ERP?

1) It is used to check the warehouse's inventory.

2) Keep needed stock levels high to minimize cash invested in excess inventory.

3) ERP enables the business to keep an eye on inventory in real time.

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4) By ensuring that the stock does not drop below the predetermined threshold, it helps them

meet consumer demand.

5) Uphold superb vendor and client relationships: -Improve customer service by responding to

their questions right away. controls the performance and quantity of suppliers.

6) Delivery Management: It aids in the organization and management of the delivery.

Sealed Air uses Sage 300 ERP software which suits the needs of their industry, through leading

enterprise management solutions that help them navigate complex data so they can drive

business growth. X3’s extensive network of 40,000 accountants and 26,000 business partners

provides industry expertise and on-site support.

Sage 300 features include :

1) Business management enterprises. Domestic or International, mobile and web, in the

cloud or on-premise.

2) A single solution for managing Sealed Air’s core business processes including inventory,

sales, customer service, finances, and more.

3) Collaboration across divisions, countries, multiple sites, languages and legislation.

4) Managing Sealed Air’s financial operations with general ledger, cost accounting, and

budgeting Control procurement, cash flow and business purchases.

5) Provides a complete view of Sealed Air’s customers across sales, marketing, customer

service and support Ideal for manufacturing, wholesale distribution, and service

processes.
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6) The purchase order is automated with the use of ERP. Purchase transactions

automatically update item quantities and costs in the Inventory Control module and issues

credit notes and debit notes in the Accounts Payable module.

7) Order entry is fully integrated with inventory control and accounts receivable. It makes

the inventory levels and customer accounts more visible.

Warehouse Management

Sealed Air has outsourced their warehouse management to a third party MNC, namely Toll

Logistics. This decision was taken to keep the costs low. Toll Logistics use their own system for

warehouse management. They use leading warehouse management systems for optimization of

operational tasks, with full electronic interfacing capabilities. Analytics and performance

intelligence reporting in real time. They have robust security practices throughout all operations.

Sealed Air warehouse’s are located in the following places: -

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1. Bhiwandi

2. Ghatkopar

3. Banglore

4. Haryana

Toll Logistics has provided Sealed Air with custom built warehouses that are specialized to the

industry and environmentally sustainable.This has helped the company to operate efficiently

through optimal use of warehouse space and state of the art warehouse technologies. The

services provided are customized to meet the company’s requirements, including the choice of

location to streamline routing; getting you close to your customers and helping you create a

low-cost network and improved customer service.

Toll’s supply chain and warehouse team uses a dedicated approach to ensure that they deliver a

solution that provides Sealed Air Pvt. Ltd. with operational excellence, efficiency and flexibility

in their business.
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Toll has undertaken quantitative analysis of the following factors to design optimal warehousing

facilities for Sealed Air Pvt. Ltd.

1 ) Warehouse layout and design

2) Warehouse location optimisation, including network design and geographic analysis

2) Property selection

3) Inventory model requiring storage space to accommodate 2 to 3 months worth of stock

4) Multi batch order picking to mitigate the risks of bottlenecks

5) Equipment designed to handle packaging materials

6) Conveying and sortation equipment

7) Staffing - An average of 150 workers are employed in each warehouse

8) Road transport modeling for the entire supply chain

Through a detailed analysis of Sealed Air’s requirements, Toll provides four semi automated

warehouses to the company. Toll’s warehouse location optimization uses specialized software

and tools to assist in the selection of the most appropriate location for a new warehouse, based on

demand, cost and service levels. Toll offers multivariable modeling for location selection,

including ‘center of gravity’ analysis and taking into account many other variables including

discrete demand, fleet mixes and road infrastructure.

Inventory Management
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The team at Sealed Air Pvt. Ltd. develops monthly and quarterly demand predictions for the

various amounts and types of goods that will be ordered from their suppliers as the first stage in

inventory planning. This is based on data from previous orders the consumer has placed.

Since Sealed Air is a trading company, the bulk of its products originate abroad, primarily in

APAC nations like China, Malaysia, and Singapore. The lead time for these products can range

from 60 to 90 days.

Lots of inventory may go unsold if the inventory is not correctly assessed in accordance with the

demand for the company's goods or services. This raises costs and takes up warehouse space that

could be used for other products that are in demand.

Sealed Air Pvt. Ltd. has made it possible to overcome this problem of unsold inventory. Since

the suppliers of Sealed Air require 60-90 days to deliver their orders, Sealed Air Pvt. Ltd. cannot

use the Just-In-Time Inventory (JIT) method. JIT is a form of inventory management that

requires working closely with suppliers so that raw materials arrive as production is scheduled to

begin, but no sooner.

Instead of the JIT method, Sealed Air Pvt. Ltd. uses a uniquely customized method of inventory

management where they use demand forecasting techniques to gauge the quantity of products

which can be demanded in the upcoming 2 to 3 months, in order to make up for the 60-90 day

window provided by their suppliers in order shipment delivery. In other words, Sealed Air Pvt.

Ltd. maintains 2 to 3 months worth of inventory stock at all times. The goal is to have the

minimum amount of inventory on hand to meet demand. When asked why they use this type of

method over others they said that a lot of times, due to Covid-19, the supply would not come on

time and which is why they adopted this technique.

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Order Processing & Manufacturing

Order Processing :

● The order processing starts from the information flow. The clients inform the company about

their requirements through a formal purchase order detailing the expected time of delivery,

product type and quantity, preferred mode of delivery (roadways, airways, waterways).

● The second step deals with checking the inventory that is managed by ERP Software. The

customer service team confirms the presence of enough stock in the inventory and processes the

order within 24 hours of it being placed.

● An advance payment of half of the order value is confirmed by the ERP software.

● Once the payment is validated by the ERP software, the order is dispatched within 24 hours.

● The order is delivered to the customer by their preferred mode of transport, in an average lead

time of 3 to 4 days.
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Manufacturing :

Sealed Air Pvt. Ltd. is a majorly trading based company. About 90% of the company’s revenue

comes from trading activities. However, 10% of the company revenue is generated through a

dedicated manufacturing unit in Bangalore in the Peenya Industrial Area.

Details about the manufacturing unit are given below :

Size of Manufacturing unit : 8516 sq feet

Number of employees : 110

Number of female employees : 37

Annual turnover : Rs.180 crores (approx)

Manufacturing Process of Bubble Wrap at the Sealed Air Plant :

● The first step in the manufacturing process is to create a mixture of different types of

natural resins according to the type of packaging being manufactured.

● Resins come in pellets, each having different properties.

● Nylon is added to the resins to increase their structural and tensile strength.
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● Plexar resin is then used to provide elasticity and flexibility to the resin mixture which

allows it to form bubble-like structures.

● The pellets are vacuumed into an extruder

● The extruder melts and distributes the resins, forming a film. The extruders operate at an

average temperature between 232 degrees celsius to 266 degrees celsius. Safety

equipment has been provided to all workers operating the extruder.

● The film made by the extruder carries through a series of rollers and forms the desired

thickness

● The thick film is vacuum rolled between a set of cylinders whose surface is indented into

circular shapes which define the size and shape of the air bubbles to be formed.

● As the film rolls between the indented cylinders, it cools down to form solidified

multi-layer bubble wrap.

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● The next step is to cut and perforate as well as inflate the bubble wrap. Each TRP

extruder machine can make 48 inch sheets of bubble wrap.

● Once the bubble wrap exits the machine, stringent quality checks are performed on it

before bagging it in thin plastic sheets and packaged into cardboard boxes.

● The finished packaging product is shipped domestically and internationally via roadways

and waterways.

Suppliers

They have more than 15 major suppliers. Their main suppliers are located in APAC countries

such as China, Malaysia and Singapore. They follow a strategically structured framework to

finalize their vendors after proper evaluation.

The factors that are taken into consideration while choosing their suppliers are as follows: -

1. Technology used in production

2. Quality score

3. Hygiene in manufacturing and storings

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Since Sealed Air Pvt. Ltd.'s value proposition includes providing sustainable packaging solutions

that indicate higher raw material costs, which can significantly be reduced by highly efficient and

automated technological processes, the technology used in production is the most important

factor in choosing a supplier. In fact, Sealed Air Pvt Ltd. boasts a team of experts that lead their

very own research and development department and who collectively hold up to 91 patents.

For packaging of food, Sealed Air Pvt. Ltd. necessitates that containers made of plastic materials

should conform to the following Indian Standards Specification, used as appliances or

receptacles for packing or storing whether partly or wholly, food articles namely :—

(i) IS : 10146 (Specification for Polyethylene in contact with foodstuffs);

(ii) IS : 10142 (Specification for Styrene Polymers in contact with foodstuffs);

(iii) IS : 10151 (Specification for Polyvinyl Chloride (PVC), in contact with foodstuffs);

(iv) IS : 10910 (Specification for Polypropylene in contact with foodstuffs);

(v) IS : 11434 (Specification for Ionomer Resins in contact with foodstuffs);

(vi) IS: 11704 Specification for Ethylene Acrylic Acid (EAA) copolymer.

(vii) IS: 12252 - Specification for Poly alkylene terephthalate (PET).

(viii) IS: 12247 - Specification for Nylon 6 Polymer;

(ix) IS: 13601 - Ethylene Vinyl Acetate (EVA);

(x) IS: 13576 - Ethylene Methacrylic Acid (EMAA);

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The company is committed to producing and delivering protective packaging products that

exceed industry standards for quality and safety. They continue to follow rigorous precautionary

measures that are recommended by health officials and local governments to protect their

employees, operations and customers.

The order process costs are the expenses incurred to create and process an order to a supplier.

These costs are included in the determination of the economic order quantity for an inventory

item which is approximately Rs.12,00,000. Ordering costs are the expenses the company incurs

to purchase and receive the products it stocks in its inventory. These ordering costs can include

shipping fees, unexpected transportation costs, inspection fees and other expenses necessary to

acquire inventory products. Their order placing cost is approximately Rs.4,50,000.

Logistics & Transportation

The price of goods purchased could be:

1) Ex Works: At the seller's gate, the buyer receives ownership of the sold goods for the

agreed upon or stipulated price. After that, the buyer is responsible for covering any risks

and costs associated with transporting the products to their premises (or another specified

location).

2) Free on board is referred to as FOB (FOR is a version of this). At the seller's expense, the

products are transported to the ports and loaded onto a ship. After then, the customer is

responsible for paying the freight, insurance, and any other costs that may arise. The

products are delivered at the quayside by the seller at the agreed-upon price under the
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FAS (free alongside) variation; all additional risks and expenses are assumed by the

buyer.

3) CIF (Cost, Insurance, Freight) refers to an arrangement in which the agreed-upon price

covers all costs up to and including the delivery of the goods at the port of call (i.e., the

port of final destination). After that, the buyer arranges for customs clearance and

transports the goods to his warehouse.

The main issue revolves around who pays for what. The ex-works price is obviously lower than

the FOB/FOR price, which in turn is lower than the CIF price. In cases where there is no

overseas shipment involved, CIF is virtually door delivery at the buyer’s premises.

Since Sealed Air Pvt. Ltd. has a high presence in India, therefore they use FOR method for

transportation. The FOR method stands for “Free On Road”. Therefore, the cost of delivery of

products is borne by Sealed Air Pvt. Ltd.

The reason behind preferring roadways over railways for domestic transportation is to be more

cost effective. It takes 3 to 5 days to reach the final destination from the warehouse. The business

prefers using ships over airplanes for overseas orders. Airways are employed for orders that need

to be delivered urgently. The client is required to cover the cost of shipping goods by air.

Sealed Air Pvt. Ltd. uses both dedicated road transport vehicles and courier partners. When

courier partners are employed, orders are shipped through a combination of part shipment and

full truck load. A part shipment entails a mode of transportation where the courier partner carries
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shipments from various clients in the same vehicle, thereby reducing shipment costs for the

clients. Whereas, in case of a full truck load, the client books the entire storage space of a vehicle

to be utilized for its products.

Reverse Logistics

After the products are delivered, if the customer decides the quality isn't up to par and rejects the

shipment, it is the company's duty to pick up the rejected goods from the customer's location.

This is because Sealed Air Pvt. Ltd. uses FOR or Free On Road method of logistics, where the

company takes full responsibility of delivery at the client’s address, unlike Ex-works method

where the client has to pick up the order from the warehouse. For the business, this process is

expensive. Hence, Sealed Air Pvt. Ltd. generally uses courier partners in a part truck load

sharing model to pick up returned orders in order to cut back on costs.

After the product is picked up, the return is processed using the software which is linked with

inventory control and accounts payable. Return packages are opened by hand, classified into

reusable and discarded.After repairs made, they are repackaged and added into the inventory list.

It takes the business nearly two weeks to add the returned product into inventory.

Back-end reverse logistics in warehouse management concentrates on boosting productivity,

lowering expenses, and maximizing the value of the returned product.

Logistics and Supply Chain during Covid-19

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Ensuring the safe and dependable production and transport of food, consumer goods, medicine,

and other necessary supplies is core to Sealed Air's purpose. They are in business to protect, and

that remains their top priority. They have put significant business continuity plans and

preventative measures in place to protect our operations and customers from adverse impacts.

Their manufacturing plants continued to operate and they generally maintained the normal lead

time for their customers. During the pandemic, their inbound receiving and outbound shipping

operations were unimpacted.

These measures include:

● Leveraging their global manufacturing and supplier network to transfer necessary raw materials

and finished goods from other manufacturing sites to the areas where they are needed most .

● Sharing Sealed Air’s health and hygiene guidelines with all global suppliers to ensure product

safety.

● Selectively and strategically increasing their inventory levels to address surge demand for

packaging for critical products like packaging for the covid-19 vaccines.

Conclusion

❖ Sealed Air Packaging India(LLP) ltd, a packaging provider company, provides sustainable

packaging options to every industry in the market. They prioritize the quality of their product

keeping the time factor in mind.

❖ Sealed Air has an ambitious goal to reach net zero carbon emissions by 2040. They have been

able to achieve 44% of this goal in 2021. It has been able to reduce the greenhouse gas emission
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by 25%. They have been recognised by CDP for their excellent performance in reducing

greenhouse gas emission.

❖ Sealed Air, more famously known as bubble wrap, has 6 brands under its belt and uses more than

5 primary materials to manufacture their products.

❖ Globally the company has taken initiatives to be more open about the raw materials they use in

their manufacturing. Their products have QR code on them which when scanned shows the

materials used.

❖ The company is aiming to establish new benchmarks for mitigating environmental and societal

risks such as climate change while generating long-term value for stakeholders and society.

Among the actions Sealed Air is taking to reduce carbon emissions within the company’s

operations, supply chain, and beyond are:

❖ Adopting state-of-the-art technology and innovation for automated packaging solutions

and systems, advanced recycling, and recyclable and renewable materials

❖ Continuing investments in renewable energy such as a solar power project in California

and a wind power project in Argentina

❖ Improving efficiencies that reduce emissions in global operations for the company and its

customers

❖ Contributing to the reduction of waste across the value chain including making

improvements to the shelf life of food and reducing food waste, enhancing transportation

efficiency, and protecting goods in transit

● It is in business to protect. Sealed Air brings together packaging materials, equipment, services,

and automation to provide essential protection for products and people.