DECEMBER 2022

Course: M.B.A
Subject Code: ME08009003
Subject: Modern Logistics Operations
Duration: 3 Hrs. Max Marks: 100
PART A Write any 5 questions: (5 x 10 = 50 Marks)
Caselet 1
A company that deals with fresh vegetables and fruits wants to open a new warehouse in
Poonamallee to serve the Chennai market. Identify the various inbound and outbound
logistics operations that could be focussed by the company.

Caselet 2
A new e-commerce venture plans to start its operations from Feb 2023. As an e-commerce
SCM head in the company, you are informed to design the customer service phases. Sketch
the phases and explain it.

Caselet3
Your organisation is entering into international business. You are sourcing the raw materials
from different countries and selling your finished goods to different countries. Now to
manage the sourcing and selling operations, you are instructed to appoint 3PL, 4PL operators
and prepare the roles and responsibilities for them. How to appoint 3PL and 4PL? What kind
of roles and responsibilities do you fix for each?

Caselet 4
A firm would like to enter into the e-commerce business. As a consultant, they are
approaching you to prepare an e-commerce order fulfillment flowchart. Hence, prepare a
flowchart and explain each function/process.

Caselet 5
A customer wants to send his consignment in an FTL 40ft container from Chennai to China.
He wants to know the EXIM process involved in sending the goods to China. As a freight
forwarder you are advised to explain each stage in the EXIM process.

Caselet 6
Consider you as a Logistics Business head, you are invited by a PAN India company selling
FMCG goods. You are expected to explain about the value-added services offered by your
logistics company. What kind of value-added services do you offer and how do you close the
deal successfully?
 PART B – Compulsory case (2*25 = 50)

7. CASE 1 (25 Marks)

Gati Air Express—Redefining Logistics Connectivity Gati Ltd started in 1989 as a cargo
management company and has emerged as a leading express cargo company and a pioneer in
distribution and supply chain management solutions in India and Asia Pacific regions. Gati
had a professional strength of 6400 dedicated employees and a turnover of INR 751 crores in
the year 2009–10. It is well ahead in identifying the segmental logistics needs of Indian
markets and providing value-added services to its demanding customers in retail and other
sectors. Integration of the latest and best technological innovations in the service and support
network comprises the business philosophy of Gati. It has headquarters in Secunderabad,
Andhra Pradesh and an office in Singapore. Recently, Gati has also ventured into cold-chain
networks. In a span of 18 years, Gati has explored various ways of providing premium value
to the customers, thereby setting benchmarks in service quality and customer satisfaction
with the help of value-added logistics solutions. Gati Air Express specializes in delivering
shipments across major locations on the very next day of the order, even during the business
hours. Some of the prime locations get delivery of the order even before noon sets in. A fleet
of dedicated freighters (cargo planes) that fly during the night and a seamless multimodal
network that goes down to the last mile to ensure that shipments arrive on time make this task
possible. Gati has promised to its customers that freight would be refunded if the assured
timelines are not met by the company. Gati is equipped with over 4000 vehicles on roads
covering 594 out of 608 districts in India. It also has mechantronic as well as warehousing
facilities of 1.5 million sq. ft. across all major cities. This helps them in offering world class
single-window solutions to the customers. In 1996, Gati tied up with Indian Airlines to
facilitate speedier delivery of shipments. This 12-year-old relationship has now been further
strengthened with the launch of the co-branded (Air India Gati) air cargo and courier service
leading to delivering value services to the customers from the synergies of the two majors in
air and surface networks. Gati was first to run the ‘Millennium Parcel Express’ train in
October 2001 between Mumbai and Kolkata with 10 VPUs (Parcel Van Unit). Unfortunately,
in the year 2003, this initiative was discontinued. Now once again Gati has taken the
initiative to run the parcel express train between Kalyan (Mumbai) and Guwahati (Assam).
The parcel train is a classic example of public private partnership (PPP). Gati’s advantage of
seamless connectivity across air, road, ocean and rail has resulted in a plethora of offerings to
the customer, which are unmatched in the industry. Besides having a strong network in India,
Gati also has a strong market presence in the Asia Pacific region and SAARC countries.
Today, Gati has offices in China, Singapore, Japan, Dubai, Hong Kong, Thailand, Nepal and
Sri Lanka and has plans to foray into other markets. Through its nationwide logistics network
GATI AIR EXPRESS promises next day before noon delivery to certain locations,
particularly the metro cities and national business centres. However, in other locations (B
grade cities) the services are for next day delivery.
Questions
1. What are the value additions that Gati offered in its logistics services to customers?
2. How could Gati get seamless connectivity in its logistics activities?
3. Discuss the role of partnership in enhancing the effectiveness of the logistics system?

8. CASE 2(25 Marks)

Snowman Frozen Foods Ltd., based in Bangalore (India), was founded in 1997. Snowman
was a result of a joint venture between Gateway Distriparks Ltd. of Singapore, Mitsubishi
Corporation (global trading company) and Nichirei Logistics Group Inc (temperature-
controlled logistics service provider) of Japan. Snowman Frozen Foods Ltd. is the first
company in India which led to the setting up of frozen and chilled food distribution systems
on a pan India basis. At a time when India’s domestic frozen and refrigerated foods scene is
heating up, Snowman Frozen Foods Limited is well positioned to express finished products to
the growing supermarket sector as well as to foodservice outlets from coast to coast. The
services offered by the company are in the area of cold chain logistics such as transportation,
storage, handling and retail distribution of frozen and chilled foods. The company’s vision is
to be a ‘trendsetter in supply chain management by setting standards for customers’
satisfaction and continuously improving the process’. Also, the company’s mission is ‘to
build long-term relationships with customers by improving efficiency of the distribution
process, which could be done by providing the most innovative and cost-effective logistic
solutions of consistent quality and high standards.’ Snowman is equipped with modern
Container Freight Stations (CFSs) and Inland Container Depot (ICD) for providing logistics
solutions that fulfil the needs of the international trading community as well as the shipping
industry for refrigerated food products. Snowman acts as a single-window logistics solution
provider offering an entire range of integrated logistics services including primary
transportation, storage, inventory management, documentation and secondary transportation
to the restaurants and institutions for inbound and outbound operations. In addition,
Snowman has customer-centric products, good domain knowledge, dedicated fleet of
vehicles, state-of-the-art technology and reliable and cost- effective solutions. The cold-
storage system of Snowman maintains the air temperature for storage at 220°C for retaining
the temperature of the products stored at 218°C, which is the international standard for frozen
food. The freezer storage has been designed for operation at 225°C having flexibility of
temperatures for incoming materials up to 215°C. The material storage arrangement
comprises two deep racking standard systems, which can store materials on Euro pallets of
size 1000 3 1200 3 1500 mm having vertically high arrangements. The pallet movement
occurs with the help of battery-operated electric forklift reach trucks, which is most suitable
for lifting the material from fourth level and second depth of the rack. The loading and
unloading of the materials from or into the refrigerated truck is done with the help of suitable
dock levelers and dock shelters. The dock shelters airlock the trucks into the cold storage area
while the dock leveller matches the floor level of the truck with that of the cold storage.
Snowman reefer vehicles ensure temperature reliability and prompt delivery. Snowman also
ensures on-time delivery of frozen and chilled products to the main distribution cold storage
and retail outlets from the processing plant. A well-trained and experienced team of drivers
ensure that the product is transported at required temperature, ensuring food safety. The
company also possesses a well-connected communication network, which provides
immediate information to the client on the movement of goods. Moreover, a professional
team of refrigeration operators, vehicle supervisors and truck maintenance mechanics make
sure that the cold chain is never broken, ensuring temperature reliability and prompt delivery.
The current fleet size of Snowman is 100, consisting of 6 ft to 24 ft Tata and Eicher trucks.
These trucks are equipped with thermo-packing and carrier refrigeration units. Frozen food
transportation system of Snowman covers around 120 cities in India and offers a fixed
schedule operation. The Snowman’s frozen stores have been built with the state-of-the-art
technology by Huurre Group of Finland, which is a world leader in turnkey freezer store
supply and management. The company’s stores are built specially to meet and maintain the
international standards of temperature requirements and hygiene for frozen food products.
Special facilities for separate storage of vegetarian and non-vegetarian products are also
available. Process control systems that can maintain specific temperatures for various
products are used to operate Snowman’s stores. The storage facilities also provide for a
computer-controlled inventory management system and have a palletized storage system,
racked storage system and concept of sharing the cold store. Snowman provides services to
producers, importers and wholesalers of food products in making their products reach the
retailers, hotels, caterers, etc. Snowman also has a perfect solution for a ‘factory-to-
consumer’ supply chain management, with an ideal cold chain for storage of goods and
refrigerated trucks. This company is also equipped with a comprehensive MIS system, which
helps in monitoring the collection of payment from the market and sales tax administration.
Snowman offers best storage and handling services and transportation and retail distribution
of food products, which are temperature controlled. Snowman’s distribution warehouse,
which has the ability to store items ranging from McCain foods’ potato products to Rich’s
Whip Topping, is the southernmost link in a chain that connects the country from 16
locations. Goa, Pune and Mumbai on the west coast, Delhi in the north, and Kolkata, Vizag
and Chennai on the east coast are some of the locations. The distribution network of
Snowman is sufficient enough to cover 120 cities throughout the country. This allows the
manufacturers and marketers of frozen food products to quickly reach all the major markets.
Snowman services 3000 retailers in 5 cities of Delhi, Mumbai, Bangalore, Chennai and
Hyderabad. Some of the major clients include Mother Dairy, Amul Mars, Chocolate, Nilgiris
Retail, Metro, Monday to Sunday, Domino’s Pizza, Pizza Hut, KFC and some 5 star Hotels.
These businesses demand cent percent quality of service which Snowman is providing
consistently. Snowman has years of experience and expertise in handling fruits and
vegetables. Snowman has over five fruits and vegetable processing centres at major fresh
produce growing areas to cover the maximum geographical locations. These fruits and
vegetable platforms are well equipped with stationary and mobile pre-coolers. The major
activities of these platforms involve washing, sorting, grading, waxing, packing, weighing,
ripening and quality testing. Snowman supports and maintains the cold chain from post-
harvest till it reaches the customer. Snowman’s IT-enabled information service has always
resulted in innovative services and solutions in pre- and post- harvest fruits and vegetable
transportation and processing. Snowman has created one of the world’s most performance
driven, process efficient and people-friendly learning organizations, where the best and the
brightest would work together to create a responsive, respectful and delightful work
environment to make it a customer focused cold chain
Questions
1. What logistics services are offered by Snowman to its clients?
2. Discuss the various issues in managing cold chain logistics.
3. How can cost-effectiveness and system efficiency be achieved in a cold chain?