SUPPLY CHAIN MANAGEMENT

Supply Chain network design in the cement industry

Submitted by: Group 8

Aman Kumar 1204
Ankit Anand 1206
Anurag Verma 1208
Harsh Garg 1223
Harshit Verma 1224
Shikhar Patel 1253
Shivam Yadav 1255

Submitted to:
Prof. Chiranjit Das
 Literature Review
After water, cement is the second most consumed material in the world. It is an indispensable
component in most applications essential to our everyday lives. For example, civil
infrastructure projects, housing, and power plants cannot be constructed without them. Cement
is often made of limestone, sand, shell, clay, and iron. Normal Portland cement is a well-known
example of the most popular cement used worldwide.

In the new millennium, global demands for construction and infrastructure improvements,
growing awareness of sustainable development, socially and ecologically motivated
regulations; resource constraints; and growth in some cement markets and declines in others
compelled cement producers to re-evaluate their supply and supply logistics chains.
Developing and executing effective supply chain management methods will result in a rise in
production, a maximizing of efficiency, and a reduction in costs and environmental
consequences.

Ever-increasing customer demands in terms of quality and timeliness need more cooperation
among businesses to remain competitive. All of these factors push supply chain management
to the front of the minds of business executives. In recent years, the government has provided
substantial investments and support to the cement industry.

According to the Union Budget 2022-23, an increased allocation of US$ 26.74 billion for roads
and US$ 18.84 billion for railroads will undoubtedly increase demand for cement.
The Indian government heavily emphasizes infrastructure development to boost economic
growth, and its goal is to create 100 smart cities. The government also wants to improve the
capacity of railways and facilities for handling and storage to facilitate and minimize the cost
of transporting cement. These steps would enhance construction activity, raising the need for
cement.

In the next decade, India may emerge as the leading clinker and gray cement exporter to the
Middle East, Africa, and other emerging nations worldwide. Cement facilities near the ports,
such as those in Gujarat and Visakhapatnam, will have an export advantage and be logistically
prepared to compete with cement mills in the nation's interior. The cement production capacity
of India is anticipated to reach 550 MT by 2025. It is anticipated that India's cement demand
will reach 419.92 MT by the end of the fiscal year 2027, led by the rising demand for housing,
commercial construction, and industrial construction sectors.
Most traditional Cement Supply Chains are divided into five significant Sections: (1) Quarry
works and Crushers, (2) Clinker production, (3) Cement grinding, and (4) Delivery processes
through (Bulk/ Bags distribution networks).

At present, the supply chain industry of the cement industry (mainly built to stock) starts with
the procurement of raw materials from fuel suppliers, quarries, and other raw material
suppliers. After procurement, the manufacturing process starts with clinker production,
storage, grinding, and bulk storage. The storage is followed by the packaging of cement in
cement bags, which is then forwarded to the wholesalers and retailers. The direct
manufacturing unit/storage also supplies concrete companies and Government and large
construction companies.

From an economic perspective, the oligopoly or monopoly that characterized the cement
industry might explain the lack of importance of SCM. Compared to a free market, oligopolies

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and monopolies have low pressure to reduce costs, low pressure from customers, and a limited
number of competitors. The focus of companies in oligopolies or monopolies is concentrated
on pricing and competition monitoring. Traditionally, SCM is not a priority for these
companies.

Traditionally, the cement supply chain is driven by asset utilization. Assets are represented by
production plants, infrastructure, and transportation equipment. Asset utilization is a given for
the largest companies in the cement industry. This is why they are moving to Efficiency and/or
Customer Response objectives to differentiate and gain a competitive advantage in the market.
This change in strategy requires cement companies to build supply chain management
capabilities that traditionally, asset utilization companies don’t have to succeed in the new
competitive environment.

Cement companies face a significant challenge in emerging markets where bulk and bags
coexist. To gain a competitive advantage, these cement companies must build two different
supply chain strategies for each product type. The bulk cement supply chain has to be focused
on efficiency to obtain benefits from optimization processes and maximize utilization. The
bagged cement supply chain has to be responsive and focused on availability. Bagged cement
is more similar to a consumer good product than bulk cement.

To cope with the bulk and bagged challenge, supply chain leaders in the cement companies in
emerging markets need a team that can work in these supply chain environments. − Practices
such as collaboration and information sharing with upstream and downstream supply chain
partners are a significant opportunity to gain alignment for cement companies. Other elements
such as the use of equitable contracts and the elimination of forwarding buying practices might
generate value and increase the agility of these supply chains. Another opportunity is supplier
collaboration with local or regional competitors in purchasing standard components,
equipment, and services. Collaboration with competitors requires a significant change in the
mindset of the cement companies.

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 Company Overview
M.P. Birla Group's flagship company is Birla Corporation Limited. In 1919, the Late Mr.
Madhav Prasad Birla established the Birla Jute Manufacturing Company Limited, which he
shaped. As Chairman of the Company, he changed it from a jute-goods maker to a multi-
product leader with extensive operations. In 1998, under the leadership of Mrs. Priyamvada
Birla as Chairman, the Company's name was changed to Birla Corporation Limited as its
turnover surpassed Rs. 1,300 crores.

Under the late Chairman of the M.P. Birla Group, Mr. Rajendra S. Lodha, the Company
continued to consolidate in terms of profitability, competitiveness, and expansion following
the passing of Mrs. Priyamvada Birla. In the fiscal years ending 31.3.2006, 31.3.2007, and
31.3.2008, the Company achieved its best-ever results. In fiscal years 2008-09 and 2009-10,
the Company's growth was exceptional.

Mr. Harsh V. Lodha is now the Company's Chairman.

In 2020-21, the Company's revenue was Rs 6,785.45 billion, and its net profit was Rs 630.14
billion.

The Company's principal commercial activity is the production of cement. It also has a
substantial foothold in the jute goods business.

Reliance Infrastructure Limited's subsidiary Reliance Cement Company Private Limited

(Reliance Cement) has been bought in its entirety by the Company (RIL). As a result of this
transaction, Reliance Cement is now a wholly-owned subsidiary of Birla Corporation Limited.
For a total of Rs. 4,800 crores, RIL's entire cement industry was acquired. This acquisition
grants Birla Corporation Limited ownership of high-quality assets, increasing the Company's
overall capacity from 10 to 15.6 MTPA.

The cement is marketed under the brand names of:

MP Birla Cement Unique (PSC)

MP Birla Cement PSC (PSC)
MP Birla Cement Samrat (PPC)
MP Birla Cement Perfect (PPC)
MP Birla Cement Ultimate (PPC)
MP Birla Cement Chetak (PPC)
MP Birla Cement Multicem (PPC)
MP Birla Cement Concrecem (OPC)

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 Supply chain management
Supply chain management is the administration of the movement of goods and services,
including the transformation of raw materials into finished commodities. It involves
deliberately streamlining a company's supply-side activities to optimize customer value and
gain market advantage.

• Supply chain management (SCM) is the centralized administration of the movement

of goods and services, which encompasses all procedures that transform raw materials into
finished products.

• By optimizing the supply chain, businesses can reduce extra expenses and expedite
product delivery to consumers.

• Effective supply chain management protects businesses from costly product recalls
and lawsuits.

• The five most important aspects of SCM are strategy formulation, sourcing of raw
materials, production, distribution, and returns.

• A supply chain manager is responsible for cost management and preventing supply
shortages.

The Workings of Supply Chain Management (SCM)

Supply chain management (SCM) refers to providers' efforts to design and implement supply
chains that are as efficient and cost-effective as possible. The supply chain encompasses
production, product development, and the information systems required to drive these
endeavours.

Typically, SCM aims to centralize production, shipment, and distribution. Businesses can
reduce extra expenses and expedite product delivery to consumers by optimizing the supply
chain. This is accomplished by maintaining tighter control over internal inventories,
manufacturing, distribution, sales, and vendor stocks.

SCM is founded on the premise that practically every product that reaches the market results
from the collaborative efforts of numerous enterprises that comprise a supply chain. Although
supply networks have existed for centuries, most businesses have only recently begun to view
them as strategic assets.

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5 Parts of SCM
In SCM, the supply chain manager is responsible for coordinating the logistics of the supply
chain's five components:
• The strategy or plan
• The strategy (of raw materials or services)
• Manufacturing (focused on productivity and efficiency)
• Shipping and logistics
• Returns procedure (for defective or unwanted products)

The supply chain manager strives to minimize shortages and keep costs low. The role entails
more than just logistics and inventory procurement. According to Salary.com, supply chain
managers "oversee and manage the overall supply chain and logistic activities to improve
efficiency and decrease supply chain costs."

Productivity and efficiency enhancements can directly impact a company's bottom line. Good
supply chain management keeps businesses out of the news and protects them from costly
recalls and lawsuits.

Supply chain at Birla corporation Ltd. (RCCPL)

Outbound Logistics
An overview of RCCPL's cement supply from the point of order receipt to final
customer delivery.

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Clinker is created by sintering (fusing without melting to the point of liquefaction) limestone
and aluminosilicate materials such as clay in the cement kiln. In addition, those factories with
mines produce limestone. In addition, these limestones are transformed into clinker and
transported by rail to cement plants that lack mines. These clinkers are then treated,
manufactured, and sold on the market as cement.

Inbound Logistics

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An overview of cement production and its supply at various stages of production.

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 Logistics Management
Logistics management is a component of supply chain management used to satisfy customer
needs via the proper planning, control, and execution of the transportation and storage of
connected information, commodities, and services from origin to destination. Logistics
management allows businesses to decrease costs and improve customer service.
The logistics management process starts with the collection of raw materials and concludes
with the delivery of items to their ultimate destination.
Logistic management aids process strategy, planning, and execution by conforming to client
demands and industry norms.
Logistics management involves various components, such as:
• Selecting suitable suppliers capable of providing transportation facilities
• Selecting the most efficient transit routes
• Identifying the most effective distribution technique
• Effectively using software and IT resources to manage associated tasks
In logistics management, bad actions produce various challenges. For instance, failed or late
delivery result in consumer discontent. The deterioration of commodities as a result of
irresponsible transportation is another possible problem. Poor logistics planning steadily
raises costs, and the adoption of inadequate logistics software may cause complications. The
majority of these issues are caused by poor outsourcing choices, such as picking the incorrect
vendor or performing delivery tasks without appropriate personnel.

Organizations should apply the finest logistic management strategies to overcome these
difficulties. Companies should prioritise cooperation over competition. Good cooperation
between transportation providers, customers, and sellers reduces costs. A reliable and secure
transportation service is also essential to the success of a company.

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Tips for Effective Logistics Management
Effective logistics management supports the efficient flow of information and goods,
improves customer relations, and reduces the need to retain extra inventory. Additionally, it
reduces mistakes, shortens delivery times, and boosts income.
A few logistics management suggestions are presented below.
1. Ensuring enhanced ground-level activity control
Logistics Management aids in connecting all resources and integrating them with several
departments to provide a more transparent perspective of operations. Access to information in
real-time across the whole of the delivery process helps simplify transportation and improve
delivery control to reduce delivery interruptions.
2. Increasing inventory proximity to consumers
The placement of inventory is crucial for meeting delivery deadlines. As consumers
increasingly anticipate speedier delivery service, the distance between the client and the
goods must decrease. Inventory locations must be identified by logistics management in order
to shorten delivery times and save operating expenses.
3. Automating fundamental logistical processes
Automation saves a substantial amount of time and money by eliminating operator
intervention, particularly in repeated activities. Automating fundamental logistics processes
like as scheduling, work allocation, roster management, and route planning may decrease
expensive mistakes, enhance customer service, and promote high levels of operational
excellence. Regarding the execution of processes, automation guarantees rapidity, precision,
quality, and productivity.
4. Adopting innovative routing techniques
Advanced routing procedures allow the planning of extremely efficient and profitable
delivery routes. By considering a multitude of external elements such as weather, one-ways,
tonnage, empty miles, risk considerations, and more sophisticated route planning platforms,
transportation costs and delays may be reduced dramatically.
5. ensuring that last-mile deliveries are customer-focused
Due to their need for quick gratification, contemporary consumers demand to know where
their items are, when they were sent, when they will be delivered, and by whom. Brands must
provide clients self-service delivery models that enable them to pick and, if required, modify
the delivery date, time, and place. Therefore, it is essential that logistics operations,
particularly the last mile, be customer-centric.
6. Decreased carbon footprint
Transportation is one of the largest contributors to the global increase in carbon emissions.
Large-scale consumers are mostly responsible for the carbon emissions of the planet.
Businesses may significantly reduce their carbon footprint by using cutting-edge technology
such as route optimization, automation, Machine Learning, and digital documentation.

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Principal Elements of Logistics Management
Management of logistics encompasses a broad network of suppliers, agents, freight
forwarding providers, distributors, packers, and service providers, as well as numerous forms
of transit. It is a complicated procedure including various factors that influence the efficient
flow of commodities.
The main logistics management components are:
Inventory Control
Inventory planning ensures adequate stock levels are maintained to satisfy consumer demand
while minimising storage expenses. Inventory planning contributes to precise order
fulfilment, a well-organized warehouse, enhanced productivity, and cost savings.
Inbound Logistics Inbound logistics relates to the business's transportation, storage, and
receipt of products. Effective inbound logistics may aid in the procurement of high-quality
goods, the reduction of overhead costs, the prevention of material waste, the expansion of
sales, and the acceleration of production. The interaction between firms and suppliers forms
the foundation of inbound logistics.
Outbound Logistics
Outbound logistics refers to the shipment of completed goods from a warehouse or
distribution centre to clients. The phases of outbound logistics include warehouse and
storage, distribution, transportation, and final-mile delivery. It is crucial to the whole
customer relationship management process of a provider. Outbound logistics refers to how
businesses get their products to the final consumer.
Managing a fleet of vehicles to remove or reduce the hazards connected with moving
products. Additionally, it improves efficiency, productivity, and total transportation and
labour expenses. In addition to calculating the profitability and scalability of logistics
services, fleet management also improves logistics planning.
Warehousing
The act of keeping commodities or raw materials in a warehouse is known as warehousing.
The warehouse's capacity is a significant component that influences inventory planning.
Without efficient warehouse management, effective logistics management is impossible. In a
supply chain, warehouse proximity and capacity are two crucial factors that impact the
efficacy of logistics operations.
Delivery Fulfilment
The fulfilment of delivery plays a crucial part in boosting customer satisfaction. It is the
method utilised to transport a product from the place of sale to the client. It also refers to the
manner in which firms interact with clients and the measures used to obtain the "perfect order
index."
Demand Planning
Demand Planning is the act of analysing, assessing, and predicting the demand for
commodities in order to assure the availability of items and goods that consumers want to

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purchase. It enables a corporation to estimate future sales and maintain enough inventory
levels to fulfil client demands without carrying an excess supply. In addition to predicting
future potential for income creation, demand planning provides insight into market trends. It
facilitates the planning of resources to fill demand and supply gaps as needed.

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 Objective

• The general objective of this study was to examine comparison on feasibility

between road transport and rail transport.

• To perform differential analysis between Road Transport and Rail Transport.

• To examine advantages and disadvantages of Road Transport and Rail

Transport.

Methodology
Primary data – Primary data for the research is collected by using unstructured-direct
interview method. Questions were asked related to the project title from every
personnel of Logistics department of RCCPL. Both road and rail logistics office
employees’ interview is taken into consideration.
Secondary data – Secondary data for the research is collected from internet, project
reports, manuals, etc.

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 Transportation
Transport infrastructure consists of the fixed installations, including roads, railways,
airways, waterways, canals and pipeline es and terminals such as airports, railway
stations, bus stations, warehouses, trucking terminals, refuelling depots (including
fuelling docks and fuel stations) and seaports. Terminals may be used both for
interchange of passengers and cargo and for maintenance.
Operations deal with the way the vehicles are operated, and the procedures set for this
purpose, including financing, legalities, and policies. In the transport industry,
operations and ownership of infrastructure can be either public or private, depending
on the country and mode.
Modes of transport used in Birla corporation Ltd. (RCCPL) for movement of products
are Roadways and Railways.

Roadways
Road transport means transportation of goods and personnel from one place to the
other on roads. Road is a route between two destinations, which has been either paved
or worked on to enable transportation by way of motorised and non-motorised
carriages. There are many advantages of road transport in comparison to other means
of transport. The investment required in road transport is very less compared to other
modes of transport such as railways and air transport. The cost of construction,
operating cost and maintaining roads is cheaper than that of the railways.
Here, RCCPL is not having its own road transports i.e., truck, instead it is having deal
with authorised transporters who are having their own trucks for the mobility of the
products as per the demand after certain paper work.
There are generally two system of transportation of goods, divided on the basis of
their quantity.
1. Part Load Transportation – (Goods transportation in sharing) – Under this
system, the goods are collected and aggregated in a warehouse in the source city and
then transported in a truck which follows the pre decided route according to the cities
in which the loaded goods is are to be delivered. The goods are then unloaded in a
warehouse and delivered to the receiver with loading rickshaws. Freights are generally
calculated per kilogram or per box. Per unit freight is higher than Full Truck Load
Transportation rates.
2. Full Truck Load Transportation – When a complete truck is allocated for
transportation of your good only, it is known as Full Truck Load Transportation. The

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per unit freight is cheaper than any other mode of transportation and continue to
reduce as the total weight increases.

Procedure to transport goods through truck

1. Find a reliable, efficient and trusted transporter who can transport your goods
effectively at best rates.
2. After you give confirmation, a vehicle is sent to your location to pick up the goods.
Generally, it’s your responsibility to arrange labours to load the goods in the trucks.
Transporter provides you an option to opt-out of this and let Transporter team arrange
for the loading.
3. Then you need to prepare E-way bill, LR, DO and tax invoice and give it to the
driver, Payment is generally made at this time, the percentage of advance amount
varies from transporter to transporter but generally ranges between 50% to 90%.
4. Goods are transported and delivered to the delivery point mentioned address
remaining amount is paid to the transporter.

Advantages
Door to Door Service: Railways have the drawback that they cannot go to each
village while road transport provides door to door service. So it is more beneficial.
Flexibility in Service: Unlike railways, the road transport provides flexible service to
men and materials.
Useful for Small Distances: While railways are useful in long distances, road
transport is useful in small distances.

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Omnipresent: The first and foremost characteristic of road transportation is that they
are omnipresent implying that they are present in every corner of the country unlike
other means of transport like railways or air transport which are not found
everywhere.
Beneficial to Industries: Industries which are situated away from railway links, the
road transport helps them a lot. It facilitates the mobility of men and materials for
these industries.
Loading and unloading of goods can be done more quickly.

Disadvantages
Frequent Accidents: Road transport system is dotted with frequent accidents.
According to an estimate, there are large number of deaths and wastage/destruction of
goods are due to road accidents. So, it is not safer mode of transport.
Higher freight: The freight of transporting the goods is more in case of roadways as
compared to railways. Railways is proved to be more economical as compared to
roadways.
Lesser quantity: The quantity transported by roadways is lesser whereas railways can
transport huge amount of product in one go. A Truck can transport 30mt of cement in
one go whereas via railways approx. 60mt per wagon can be transported i.e., (60*42)
MT of cement can be transported.
Unsuitable for long distance: Roadways are suitable for small distance. Long
distance transportation via road increases various risks and are more time consuming.
Affected by whether: Roadways are highly driven by whether as it is difficult to
drive in fog or rain. Goods may also get damage due to inappropriate whether
condition.

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Railways
Rail transport is also known as train transport. It is a means of transport, on vehicles
which run on tracks (rails or railroads). It is one of the most important, commonly
used and very cost-effective modes of commuting and goods carriage over long, as
well as, short distances. Since this system runs on metal (usually steel) rails and
wheels, it has an inherent benefit of lesser frictional resistance which helps attach
more load in terms of wagons or carriages. This system is known as a train. Usually,
trains are powered by an engine locomotive running on electricity or on diesel.
Complex signalling systems are utilised if there are multiple route networks. Rail
transport is also one of the fastest modes of land transport.
Inbound logistics – Coal, Gypsum, Fly ash, etc.
Outbound logistics – Cement, Clinker, etc.

Advantages
Lesser Freight – Transporting goods via railways is more cost-effective as compared
to roadways.
Suitable for Long-distance – Railways is suitable for long distance mobility of goods
whereas road transport is not feasible for long distance as compared to rail.
Large quantity – Huge quantity of goods can be delivered in one go. Approx.
2700mt to 4000mt of cement can be delivered via rail in one go.
Faster delivery – Delivery of goods is faster when delivered with rail as compared to
road transport.
Lesser risk – Risk while sending goods via rail is lesser than truck. Risk of accident,
goods destruction, theft, mishandling of goods, wrong address delivery, etc is
minimal.
Easily traceable – The exact location of the goods can be traced easily through FNR
no. on FOIS system which helps in making commitments and further strategy and
decision making.

Disadvantages
Unavailability of railway track - Location of customer might be having
unavailability of railway track or is at a distant from railway track. Extra
charges/handling cost may increase due to this.

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Customer demand for slots or batches – Customer might not be having proper
storage system for storing large amount of goods as via railways huge amount is
delivered. So, customer might ask for delivery in slots or batches.
Defective wagons – Wagons approved by Indian Railways for delivery by RCCPL
might be defective. Repairing or replacement of wagons are done on company’s cost.

Comparison based on factors affecting transportation in Logistics

operations
Various considerations are considered when comparing the practicability of roads versus
railroads. These elements include: -
These elements include: -
Terminal facilities
Typically, terminal facilities are given voluntarily. The design of these facilities, which
include storage space and loading and unloading operations in an appropriate area, is often
economical. If storage space is limited or traffic is congested, production will undoubtedly
decrease. Due to the fact that each project's transportation requirements differ based on its
location, infrastructure availability, and other considerations, it is not ideal to prescribe a
uniform size for terminal facilities. They must be tailored to the specific requirements of each
project.
As part of terminal facilities, storage, loading, and unloading facilities, year-round usable,
high-quality roadways, and a properly constructed railcar yard must be established. The
maintenance of loading and unloading equipment, as well as the design, location, length,
height, and other characteristics of loading and unloading platforms, as well as the upkeep of
circulation areas and roadways where heavy vehicles pass, are all essential.
In addition to establishing a sufficient number of loading lines for rail transport, a sufficient
number of marshalling, inspection, and holding lines must also be built. To ensure smooth
shunting operations, these lines must be correctly interconnected. The number of lines in the
yard is less important than the pattern of lines (yard designs), as a good yard design may also
minimise the demand for prime movers (shunting engines).
The kind of vehicle utilised to convey the project's final deliverables is a key element.
Dimensions and capacity of the vehicle must be evaluated in connection to the quantity and
quality of the things to be carried, as well as the vehicle's kind and any particular attributes.
In the case of sea transport, the size, speed, and kind of ship must be carefully evaluated; in
the case of road transport, the capacity, moving dimensions, and speed of trucks; and in the
case of rail transport, the capacity, type, and general availability of waggons.
When planning movement on any section, the use of present sectional capacity, the
anticipated general increase of traffic on the section, and the likelihood of future identifiable
streams of extra traffic must all be addressed. If movement cannot be avoided on a saturated
segment, the line capacity of the segment must be increased.

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Transition Time (TAT)
In any logistics organisation, turnaround time is perhaps the most important performance
indicator. TAT refers to the time required for transport trucks to complete the whole process
of loading finished items, from the point of plant entry to the point of plant exit. The most
efficient utilisation of time and resources is made possible by short turnaround times.
Consequently, the CPM approach is used to discover activity delays that contribute to a
lengthy TAT. If a delay in initiating an activity creates a further delay in the project's
completion, the activity is deemed important. The critical route is the sequence of crucial
network operations. It is the longest path from the beginning to the end of the network, and it
influences the time required to complete the project.
The whole amount of time a truck spends at the terminal is referred to as the truck turnaround
time. Picking up and/or putting down a container from the gate-in to the gate-out. It includes
arrival at the packing site, loading and unloading, truck inspection, documentation
completion, and departure from the terminal.
TAT for trucks at RCCPL is around 3 to 4 hours during typical business operations. Some
abnormalities, such as route diversion owing to a blocked railway line or flow
disruption/truck breakdown on another route creating a traffic gridlock, may result in a TAT
of 8-9 hours. According to last month's statistics, the average TAT of rail is around 7.2 hours.
Transit Time
Transit time is the entire amount of time it takes for a shipment to get from Point A to Point
B, measured in hours or days. The transit time for raw materials, spare parts, and finished
goods is influenced mostly by the proximity of a plant to its customers or suppliers. When
developing big projects, transportation time is seldom given sufficient attention. Transport
time forecasts from faulty sources are often employed in the planning of goods transit.
Although more complete information sources may be available.
Consequently, it is crucial that executives understand the distinction between:
• normal transit time under normal conditions;
• normal transit time under abnormal conditions;
• optimal transit time;
• the most optimistic transit time;
• the most pessimistic transit time; and
• the desired transit time.
It is inadequately prepared for, since the importance of journey time is not completely
recognised. Due to a lack of timely availability of construction equipment and machinery,
many projects experience severe delays before work even begins. Existing limits in the
transportation industry are almost often disregarded. Frequently, construction timelines,
inventory levels, storage facilities, order processing or production schedules, etc. are planned
without taking into consideration the inevitable delays induced by bottlenecks.
Distribution Structure

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The transportation pattern of the final product via road or rail must be appropriately
organised. For example, when determining the number of rail waggons needed, it is
insufficient to use the average distance or lead for the whole nation for computing fleet needs.
It is also insufficient to utilise the current average lead time for general commodities or even
that of a particular item.
Due to imprecise pre-planning, the producer wants the commodity carrier to convey items to
each and every location in the nation during real transit. This creates a difficulty. The
manufacturer gives the common carrier with information on the number of items to be sold.
But thorough information must be provided to the carrier in order for the carrier to organise
the whole journey.
Prime movers
Motive force employed for the internal management of vehicles and transportation to
destinations is a crucial component of the whole movement system. In the case of rail
transportation, locomotives necessary for the shunting and marshalling of waggons inside the
plant must have the appropriate weight, horsepower, and performance characteristics for the
shunting, receipt, and dispatch of waggons. In the case of road transportation, the design and
arrangement of conveyors and automated loaders may decrease the tedium of physical labour
and improve the efficiency of pre-shipment and post-receipt handling activities.

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 Differential analysis between road and railways

Road Rail

Speed
Road transportation has limited speed due to bad It has considerable speed as it runs on track which is
road condition. least disturbed.

Carrying capacity
It has limited carrying capacity of around 30mt. The CC of railways is huge i.e., approx. 2700-4000
MT

Cost
The cost of sending goods per MT is more in trucks. The cost of sending goods per MT is lesser in rail.

Distance
It is recommended for short distance. It is recommended for long distance.

Door-to-door service
It provides door-to-door service. It does not provide door-to-door service.

Suitability
It is suitable for short quantity with short distance. It is suitable for large quantity with longer distance.

Safety
It provides limited safety from natural disturbances It provides protection to goods as they are locked in
like sun, wind, rain etc. packed wagons.

Accidents
More chances of accidents are there. Minimal chances of accidents is there while using
rail.

Ownership
Ownership is in hand of private parties. Ownership is in hand of government.

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 Conclusion
When you compare rail and road transport in India, statistics point out that road
transport is preferable by businesses for obvious reasons. In case the shipment is for
longer distances, rail goods transport is always preferred over road transport. Hence,
you have healthy competition in the transport sector.
When we compare Road Transport and Rail Transport both have their own pros and
cons but when we compare on the basic of feasibility then Railways have extra
Advantages because
• It is much faster and more reliable as it is least affected by weather conditions and
traffic jams.
• Huge quantity of goods can be delivered in one go. Approx. 2700mt to 4000mt of
cement can be delivered via rail in one go.
• Railways is suitable for long distance mobility of goods whereas road transport is
not feasible for long distance as compared to rail.

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