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SR.NO. CHAPTER Executive Summary 01. Aim of project study Rationale for the project Objectives of the study Literature review Introduction about logistics 5.1 Introduction to logistics 5.2 what is logistics 5.3 logistics management 5.4 production logistics 5.5 Logistics management process 5.6 Logistics terms Certificate of origin Warehousing Distribution Transportation
5.7 Marketing logistics


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02. 03. 04.

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Introduction Logistic practices 6.1 Scenario of logistics in India 6.2 About logistics & customer service 6.3 Models for logistics practices


06. 07. 08.

Introduction about company profile Research Methodology Data Analysis and Interpretation Limitation and future scope of project 19-34 34-36 36-41 41-42 43-44 44-45

09. 10.

Suggestions and Recommendations Conclusion and bibliography


Executive Summary


Logistics is the part of the supply chain process that plans, implements and controls the flow of goods. It can also be seen as the management of inventory, in rest or in motion. Logistics is an organized process of managing the flow of merchandise from the source of supply the vendor, wholesaler or distributor through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer. This project intends to see the effectiveness and awareness about the logistics of various goods and services. Alongside this, it also attempts to understand the functioning of RELIANCE INDUSTRIES LIMITED, NAGPUR MANUFACTURING DIVISION (RIL, NMD), MOUDA. The objective is to have a complete knowledge the logistics of goods, information and other resources, including energy and people and to study the existing supply chain management practices of RIL, NMD MOUDA. The study conducted is mainly based on the secondary data and primary data. RIL NMD, MOUDA is the leading polyester yarn (POY) polyester chips, FDY provider across the India and in foreign countries. RIL polyester known for his quality worldwide. RIL vision is to establish continuing excellence in delivery capabilities focused on the individual customer. In pursuit of sustainable leadership in quality services, they have evolved an infrastructure unique in the country today. RIL NMD, MOUDA not only handles large volumes and oversize packages overnight it also provides the INDUSTRIES with status of their shipments and retrieves such records as are necessary for billing. Company has fulfills all the necessary and regulatory requirements of supply chain of goods and service as a renowned supply chain management company.


”To study and understand the concept of logistics management and supply chain management existing practices in RELIANCE INDUSTRIES LIMITED NAGPUR MANUFACTURING DIVISION, MOUDA”.

• It offered in depth study of logistics in terms of as Logistics is a channel of the supply chain, which adds the value of time and place utility. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. • It also provided an insight about the works done by some eminent scholars in this field. Logistics is not only about strategic planning and resource management, but it is also about how companies go about their day and what impact this has on the rest of us. As a business specialty, the explosion of globalism has promulgated the practice of logistics. • It helped me to understand the concepts of logistics in terms of practical usage. In the days of mostly domestic companies, shipping departments in most companies were run by an experienced shipping clerk that basically had carte blanche because too few people adequately understood how to get things done. Except for top executives, especially in family-owned companies, nobody wanted to have any direct involvement with this department. Most people wanted their packages shipped on time and wanted items shipped to them delivered to them immediately. Other than that, there was hardly any motivation to have contact with shipping in many instances. In many cases, this fact has not changed for practitioners of logistics. • It gives the idea about how a real company or organization uses logistics as a important tool to gain customer satisfaction, reduce overall cost and increase efficiency. Nowadays smaller companies newly entering global business and are beginning to recognize the importance of logistics, but many top executives still have a hands off approach. • This also helped in understanding the logistic practices done at Reliance and gave a chance to make it better.


The main objective of the project is to have a complete knowledge of the logistics of goods, information and other resources, including energy and people. Alongside this, the objective is to study the functioning of RELIANCE INDUSTRIES LIMITED, NAGPUR MANUFACTURING DIVISION, MOUDA as an example of typical logistics company.

The study is done primarily with the following objectives in mind:    To study the issues and origin of LOGISTICS MANAGEMENT. To understand the concepts related to LOGISTICS MANAGEMENT and SUPPLY CHAIN MANAGEMENT. To analyze the tools/strategies used in LOGISTICS MANAGEMENT. To identify the existing practices of LOGISTICS MANAGEMENT in RELIANCE INDUSTRIES LIMITED, NAGPUR MANUFACTURING DIVISION, MOUDA


it contends that the model offers greater potential benefits than those proposed by other models. Therefore. which have combined in the 1990s to influence the way in which companies have responded to uncertain consumer and supply market changes. while not presented as a panacea or replacement for individual activities between a purchaser and its individual suppliers. One critical component of disaster management planning in supply chains is the storage of emergency supplies. Such research activities will inevitably focus on the longitudinal assessment of their effectiveness. such as the growth and spread of ecommerce and e-business. and the time-based competitive benefits of diffusing associations throughout the supply chain. J. equipment. Companies are organized as Demand and Supply network and the global logistics system is performed by a large-scale world-wide network of local service enterprises. improving disaster preparedness in supply chains is critical. (1995) 6 . the sources of failure and conflict within the system. Bhola. Supply chain disruptions caused by external events can have a significant financial and operational impact on firms not properly prepared. As we seen Terrorist attacks. The study of the supplier association mechanism is still in its infancy and an important part of future research will involve observational research of these associations in action. Nick Rich. The paper has also elaborated the network-sourcing model of collaboration and.The role of the supplier association. an appraisal of the successful associations. as a collaborative management device. and vital documents that will be needed in times of crisis. Referring to such scenario. Peter Hines and Ford. Charles K. natural disasters. and regional power outages from the past several years have all highlighted the low levels of disaster preparedness that exist at many rms. (1992) According to the new tendencies in marketplace. multi-agents and operations research approaches in modelling classical and new complex problems are reviewed and illustrated. The paper has outlined the various forces. Slats. Operation Research techniques for centralized optimization are discussed with reference to classical resource allocation and work flow problems. Dijkhuizen(1995) The goal of this paper is to propose a decision process for establishing an efficient network of secure storage facilities that can effectively support multiple supply chain facilities. Evers. B. P. in providing a structure for the achievement of time compression in the supply chain. Supply chains and Logistics are naturally being modelled as distributed systems. and G.

the 3PL provider needs to establish transaction and inventory management systems involving other firms in the supply chain. It is believed that SCM and 3PL have positive interactive effects. services and ideas. special emphasis is being given to supply chains in general. moreover. This scientific article proposes to assess Brazilian logistic systems and their supply chains by an innovative methodology. supplier. and related 7 .R. implements. Such relationship between the 3PL provider and the sub-contractor likewise constitutes a part of the supply chain process. Innovation is presently the biggest challenge that all companies will have to face no matter how large they are. (1998) Innovation has become an important topic or a pre-eminent issue in modern times. and that firms which plan to introduce 3PL. distributing and consuming goods. Some say that present innovations. by suggesting ways to effective logistic innovation and.e. given that the Council of Logistics Management (CMS) defines logistics as that part of the supply chain process that plans. that territories and modern societies are being reorganized in an essential manner by means of scientific and technological innovations. Some activities are outsourced to subcontractors. circulating.The SCM and 3PL have individual advantages. Authors such as Stephen Hawk and Roger Penrose categorically state that those powerful mainframes might never supersede the human being‟s creative capability for innovating. manufacturer and retailer. Upon the rupture of countless paradigms and continuous innovation in the logistic processes. by pointing out the ones bearing the strongest innovation potential. When a firm contracts out logistics activities to a 3PL provider. It is recommended that firms. or. and Poist R. in this era of new technologies allied to telecommunications and to computer science. should utilize 3PL. i. hanging the ways of producing. Murphy P. significantly alter social structures. ser-vices. This section will show the best combination of SCM and 3PL that would benefit the firm with their interactive effects. The 3PL provider does not usually provide all logistics activities solely. Cooper & Pagh (1998) This is not surprising. non-asset 3PL providers may outsource a transport activity. and controls the efficient. should employ SCM. This has motivated the detailed conceptual study of these chains as well as their association with substantial gains in the strategic alignment and in the companies‟ competitiveness. effective forward and reverses flow and storage of goods. etc. or synergy effects. which aim to develop SCM.E. Lambert . among the major segments of logistics. For example.

to make advises. etc. They likewise have different skills or competencies. A firm. The focus of this research is on the second path. warehousing. Even definitions of supply chains allude to the idea of processes or process management. Lambert. (1999) identified key processes that managers should focus on in order to be more effective in managing their supply chains. may have opportunities. Such a logistics coordinator. In this paper. which has received limited attention . and Keebler et al (1999) SCM encompasses flow of goods. total optimization of the flow of goods including firms in the supply chain is required. etc.information between the point of origin and the point of consumption in order to meet customer desire requirements. also called Third Party Logistics (3PL). information processing. coordinating the interests of the firms is necessary for logistics management in SCM. production management. Different approaches in accounting.. SCM is composed of several management tools. Thus. Researcher reviews in this paper that 3PL is a new type of industry where the firm‟s logistics activity can be outsourced. which are complementary and require further coordination. order control. marketing. and finally to the recycling stage. Maloni and Benton (2000) 8 . For example. through production and consumption stage. Palaneeswaran and Humphrey (2000) The general idea of logistics is to strategically manage the total flow of goods. material handling. it must be pointed out that the interests of firms in the supply chain may conflict due to the partial distribution of cost and benefit among the firms. information and money from the raw materials supply stage. strategic management of supply chain activities. which is strategic management of goods flow in the supply chain. When trying to optimize the total flows within the supply chain. Cooper. and therefore. have been developed to solve the problems in SCM. we will take our attention to logistics in SCM. has been gaining attention. . Keebler et al. Logistics management includes inventory control. accounting approach to SCM mainly focuses on cash flow in the supply chain. which possesses logistics know-how on coordinating economic resources. transportation. while information processing approach focuses on the flow of information. Kunmaraswamy. Thus. logistics optimization is not only accomplished from the viewpoint of one firm.

and Peter Mendel (2001) 9 . Advanced planning and scheduling. The supply chain not only includes the manufacturer and suppliers. Some of the software modules take care of supply side management processes like supplier management. They are critical to managing two-way information flow across the network. Carole S. support day to day operations in the organization and distribution network management. etc. Chopra Sunil. order fulfilment. work-centre execution. e-procurement and material management and supply chain network planning. but also transporters. warehousing management system customer order management. etc. With emerging analytical tools and enabling technologies. The article review focuses on the use of technology in SCM like SAP modules which helps in managing downstream management functions with an organization. regulating material flow (not physical) in the organization and providing a decision support system. A framework is developed to assess the logistics complexity based on significant properties (structure. Dynamics and adaptation) on three levels of resolution (individual/parts. The identified emphasis of planning and controlling in logistics management are Questioned and it is suggested that a change concerning the elements related to the property of Adaptation is needed. it is possible to develop the new techniques of SCM and Logistics management. retailers and customer themselves. Waidringer J (2001) A supply chain consists of all stages involved. warehouses.Supply chain solutions are vital in day-to-day business transactions. Transportation management. directly or indirectly. the firm and the Network). in fulfilling a customer request. etc. Chopra and Meindl in their book Supply Chain Management: Strategy & Planning. (2000) The Council of Logistic Management (CLM) definition of logistics management is used as a base to address the implications a complexity perspective has on the logistics discipline. inventory management. The aim of this paper is to discuss the implications a complexity perspective may have on the Management of logistics This means that the process of planning and controlling has to be balanced by considerations to emergent phenomena and the processes of self-organization taking place in the flow of products and information. demand management.

many technologies have been proposed and implemented covering different fields which include optimization. It must be noted that a large extent of corporate technical knowledge is difficult to articulate and tacitly resides in the minds of knowledge workers. supply chain design and strategic collaboration are quite difficult because of the dynamics and the conflicting objectives employed by different facilities and partners. simulation. From this paper it reviews that the sharing of data. For example. and transportation costs and satisfy service level requirements. In practice. This paper provides the conceptual area of logistics that hopefully will give an increased understanding of the problems and systems analyzed and that it in this way will be a part of a further development and enhancement of the research into complex Logistics systems . Nichols (2002) The evolution of supply chain and logistics networks reacts the increasing interest towards decentralized Multi-Agent Systems which is pointing out the necessity of evaluating and modelling efficient management and coordination tools. the supply chain is a dynamic system. determining production levels for each product at each plant. to analyze complexity in logistics systems per se and to study different concepts.Basically the paper has explored if complexity as a concept and metaphor is useful for describing the shortcomings of logistics systems and it has been proved valid in at least one case. Hiroshi (2001) Supply chain integration is difficult for two primary reasons: first. What is the effect of inventory on system performance? Why should a supply chain member hold inventory? Distribution network configuration involves management‟s making decisions regarding warehouse locations and capacities. B and J. descriptive models or 10 . conflicting objectives. information. Handfield. models and methods that will help us in understanding and adhering to the requirements of a sustainable society. L. Tasaka. inventory. Inventory control is another tough issue. the supply chain is an integrated system that requires cohesive decisions to optimize the system profit and value. and set transportation flows between facilities to minimize total production. inventory. Ernest. which has its own life cycle and continually evolves. logistics and knowledge is a challenge of virtually integrating a supply chain. As a response to this active research area. R. The future research envisaged is twofold. agent technologies. different facilities in the supply chain may have different. Second.The concept of complexity is one tool that is possible to use to assess and model logistics systems in order to create a basis for more efficient and effective sustainable logistics solutions.

Planning: Planning starts with a contract that details the responsibilities of the companies that will collaborate with each other in providing the right products for customers Forecasting: First. T. Replenishment: mining. In this sense.( 2003) Based on a two-stage decentralized supply chain comprising a retailer and a manufacturer. B. Any differences in demand among participating firms will then be identified and resolved. researchers and transportation planners to define and comprehend the basic views of logistics and its various applications and the relationships between logistics and transportation. H (2003) The research was undertaken to assist logistics managers. Finally. Ward J. Steermann. Modifications may be done periodically to reflect the changes in market demand. This paper attempts to illustrate the benefits of supply chain partnerships with information sharing. Lack of collaboration in supply chain leads to inefficient Three major activities production. The partnerships between the retailer and manufacturer are defined in terms of three information sharing levels. From the comparison results of inventory reductions and cost savings of the two members. in order to get to a proper coordination of the systems. forecasting. customer demand is predicted for all the participating firms. and inflated costs. The supply chain partners can use EDI to support a VMI strategy for inventory decision-making. crucial an efficient integration of such technologies and the development of quantitative solution procedure. Dang. it is deduced that Pareto improvement is achieved in respect of the entire supply chain performance. Mc Gavin E. constitute CPFR: they are planning. redundant inventory stock.B(2003) The report is based on the essence of recent supply chain development is collaboration across the supply chain. Budinska. The bullwhip effect exists in the decentralized supply chain in our paper performance of the supply chain.. There are a few steps involved in each activity.-T. Frankovic.E.J. Finally. a feasible sales forecast for all participating firms is developed. and replenishment. any difference among participating firms are identified and resolved. possibly employing optimization techniques. an efficient production and delivery schedule is developed. orders for all participating firms are estimated. and Schwarz L. The operation of transportation 11 . modelling study and analysis have been performed to investigate supply chain members' optimal inventory control policies. The aim of this work is to give a survey of such approaches and to point out new open problems and requests of such decentralized systems. and I.

Transportation takes a crucial part in the manipulation of logistic. Proceedings of the Eastern Asia Society for Transportation Studies (2005) 12 . logistics helps to optimize the existing production and distribution processes based on the same resources through management techniques for promoting the efficiency and competitiveness of enterprises. The purpose of this paper is to re-clarify and redefine the position relationship between transportation and logistics systems through collecting and analyzing various applications .determines the efficiency of moving products. Reviewing the current condition.For industries. a strong system needs a clear frame of logistics and a proper transport implements and techniques to link the producing procedures.

2 What is Logistics? Logistics can be classified as an enterprise planning framework for material management. it cannot be neglected by an enterprise focused on growth and profitability. The primary goal of logistics is to effectively manage the project life cycles and resultant efficiency. 4. In business terms.3 Logistics Management Logistics management is the process of planning. This has greatly evolved with a logistics manager's role in efficiently designing the products of the company keeping in view the principle of efficient system of supply chain management.” logistics can be defined as having the right type of product or service at the right place. pay its employees and grow its customer base. Supply chain management has emerged as a product of the modern information technology has enabled the coordination and collaboration that underline today‟s SCM strategies. Logistics when seen in the context of the modern day prevalent work environment also includes information that is complex in nature besides giving importance to all the communication and control system that are essential for efficient working of the organization. coordination. transportation. warehousing. Logistics management plays an important part in the present business world. at the right time. supply production and distribution of product s to customer. service and capital flows. It refers to a complete process of total supply chain management that is established to achieve a state of perfection through efficiency and integration 4. and evaluating all logistics functions in support of an operation or activity. distribution and customer service.1 Introduction Supply chain is the process of moving goods from the customer order through raw material stage. In the words of a layman. implementing. Logistics management does not mean a single work activity but refers to a group of activities performed to attain the goal of a business enterprise that is maximizing the Profits. preparing. for a right price and in the right condition." Logistics has evolved as a common and well-known business concept because of the ever increasing complexities of modern day business. it can be summarized as a competitive strategy adapted by the enterprise to meet and exceed the expectations of its existing and prospective customers. information. This may involve steps like purchasing. A business can run without profits. but it needs money to fund its services. planning.4. 13 .

whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit. 4. which have given the due attention towards its development.4 Production logistics The term is used for describing logistic processes within INDUSTRIES. Manufacturing: Production planning systems. but to streamline and control the flow through the value adding processes and eliminates non-value adding ones. 4. There are some terms which relate to the concept of Logistics and any aspirant who wants to have a deep insight into the overall procedure of logistics must be aware of these frequently used phrases.6 Logistics Terms Logistics has evolved to a greater extent than ever thought possible and this has been attributed mainly due to the modern and advanced business enterprises. The various processes and elements that are part of logistics as a discipline are: Inbound logistics: Purchasing. and Warehouse management systems. The role of a logistic manager and logistic executive is to handle the various tasks related to logistics and to assign responsibilities that pave the way for logistics to be recognized as an integral part of any organization. which gives the opportunity to improve the production logistics system accordingly.5 Logistics Management Process Michael Porter in his famous book "Competitive Advantage'' has spoken of the value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time.4. outbound transportation. a look at the current business scene will be great help. at the right place and in the right condition. The issue is not the transportation itself. Machines are exchanged and new ones added. As customers started demanding improved servicing standards. Logistics can be defined as delivering products at the right time. 14 . for a right price. Distribution management. Inventory Management. Production logistics provides the means to achieve customer response and capital efficiency. Outbound logistics: Order booking process. Manufacturing in an existing plant is a constantly changing process. Production logistics can be applied in existing as well as new plants. Machine scheduling system. Inbound transportation. fast cycle time has become the key factor for business success. Before delving deep into logistics.

This is considered to be important aspect of any organization as timely delivery of products ensures customer satisfaction and brand name for organization. usually for sale at a later time. He is usually liable for hiring the transportation vehicle for the goods sent by shipment to be delivered to the consignee. This certificate is sent to the importer by exporter of the product. In a transaction based on credit.Certificate of Origin: This refers to a certified document that is used in foreign commerce with regard to the origin of goods. goods. trolley. The cut-throat competition so commonly associated with many current organizations has caused most businesses all over the world to remain proactive and any organization which ignores the importance of logistics has to blame itself. issue and disposal of goods. speed and geographical locations. It is done for safe keeping of goods.Logistics Logistic managers are given the task of marketing logistics as well as communicating logistics with a purpose of positioning logistics in the present competitive environment. This certificate needs to be signed by the exporter of the product and needs to be certified by the local chamber of commerce. 4. Also known as shipper or sender.  Transportation: Refers to the movement of supplies. past experiences. The entire purpose of logistics is defined when the logistics managers start to take marketing initiatives.  Warehousing: This is the procedure of storing goods at a safe and clean place for the purpose of safeguarding the goods and may involve keeping goods to be sold at later stage.  Consignor: He is a person who makes the shipment of goods for the purpose of delivering the same by any mode of transport such as sea. This can be described as a place or store where merchandise or products are kept. services and resources to the place of their consumption or where they are required. people and equipment by any mode of transport such as rail. This may be beneficial in claiming any concessions. he has the right to stop the goods in transit. This usually involves storage. transportation. trolley. 15 . This document certifies that the products which are ready to be exported have been manufactured in a specific geographical location and country.7 Marketing Logistics . land or air. The mode of transportation may be dependent on several factors like customer requirements and specifications. water or air.  Distribution: It refers to a process of the movement of people.

energy. products. 5) It has the 2nd largest pool of qualified technical workforce. But with its current expertise. The Confederation of Indian Industry (CII) is the premier business organization with a known commitment towards the development of logistics in India. material handling. for a right cost in the right condition. India has been the student rather than the expert when it comes to the field of logistics. warehousing. 2) It is believed that about one-quarter of the youth population of the world resides in India.5. There are several factors that benefit the Indian economy for reaching success in the field of logistics. it surely is walking on the path of being a service provider of class. It is brought up to satisfy the latest industry needs for specialized SCM and logistics. warehousing and inventory management. 16 . India spends 13 percent of its Gross Domestic Product (GDP) on logistics as opposed to the usual practice of 10 percent by other developing nations. at the right place. It's the art and science of managing and controlling the flow of goods. valuable human resources and positive plans. It includes the proper combination of several activities such as material handling. at the right time. logistics. It has established the CII Institute Of Logistics which is a specialized state-of-the-art institute of excellence with its focus on SCM and logistics. 3) India has human resources that are high in knowledge and abilities. namely: 1) India is the fourth largest economy in the world. 4) It is the second-largest English-speaking workforce. This has benefited the efficiency and productivity of the complete value chain in several dimensions of profits. services. The Indian economy is striving for improvements in the field of logistics and supply chain management to gain the competitive edge in today's worldwide economy. for the purpose of ensuring supply of the right product. information and people from the origin point to the destination point. and information.1 Scenario of Logistics in India Logistics in India don't differ too markedly from logistics anywhere else in the world. This has resulted in the creation of the need for a vast range of supply chain management (SCM) and logistics solutions which cover several factors such as supply chain. The Indian government has favored the logistics market of India by making some helpful plans and policies to assist in its growth. In the past. speed and customer service. storage. Information technology (IT).

jewelry.S. In some cases the customer is a different organization or individual who is taking ownership of the product or service being delivered. DHL. Reliance Logistics. the customer being serviced is the focal point and driving force in establishing logistical performance requirements. The logistics market in India is estimated to be Rs. It is much higher than for the U. 17 . Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people. Container Corporation of India. International service providers are Schenker. Varun Shipping Company and BLR India. Reliance Ports/Terminals. Great Eastern Shipping.2 About Logistics & Customer Service Logistics contributes to an organization‟s success by providing customers with timely and accurate product delivery.India is being treated as the destination of the future in the field of logistical service providers all over the globe. The largest Indian logistics service providers are Shipping Corporation of India. Blue Dart Express. Regardless of the motivation and delivery purpose. the customer is any delivery destination. Transport Corporation of India. 5. In recognition of the growing need for technology-enabled solutions in logistics in India and abroad. pharmaceuticals. Indian logistical market players have started to gear up and position themselves in the global scenario.000 crores and constitutes 13 per cent of the GDP. there are a dozen multinational logistics companies such as Excel. India is keen to offer transportation and logistical service to grow itself as an emerging marketplace. The true potential of these service providers is yet to be realized. In many other situations the customer is different facility of the same firm or a business partner at some other location in the supply chain. Arvato. precision tools and engineering goods. many companies such as E-Logistics are taking shape. all of which need special shipping provisions. Typical destination range from consumers‟ homes to retail and wholesale businesses to the receiving docks of a firm‟s manufacturing plants and warehouses. gems. It is important to fully understand customer service deliverables when establishing logistical strategies. Essar Shipping. Kühne & Nagel and TNT . Bax Global and Menlo which have started operations in India during the last few years. but lower when compared to countries like China and Korea. The key sectors include fashion. 260. In fact. The key question is who is the customer? For logistics.

It may be difficult or impossible to handle occasional periods of high demand between two spokes. such as package sorting and accounting. and the complexity is O(n). 6. Changes at the hub. Scheduling is convenient for them since there are few routes. and can often fly routes more than once a day.  4th party logistics  Cobbling of 2 or more destinations Hub and spoke model:-The hub-and-spoke distribution paradigm (or model or network) is a system of connections arranged like a chariot wheel. as well as in distributed computing. in particular transport. Route scheduling is complicated for the network operator. more efficient use of transportation resources. The model is centralized. the basic customer service platform or program should be the level of support provided to all customers to trading conditions. The model is commonly used in industry. In a typical marketing situation. Spokes are simple. In terms of overall logistical performance. and new ones can be created easily.3 Models used for Effective Logistics practices  Hub and spoke method  Use of information technology. Scarce resources must be used carefully to avoid starving the 18 . can be carried out at the hub. Complicated operations. the desired customer service performance changes over time. could have unexpected consequences throughout the network. only n . or O(n2). aircraft are more likely to fly at full capacity. that would be required to connect each node to every The small number of routes generally leads to other node in a point-to-point network. the upper bound is n . For example.1 routes are necessary to connect all nodes. This compares favorably to the routes. telecommunications and freight. The product life cycle structure offers a useful framework for viewing the dynamics associated with customer service requirements planning. with frequent service. in which all traffic moves along spokes connected to the hub at the center. rather than at every node. that is. it is fundamental to servicing customers. To plan marketing strategy in a dynamic will serve to illustrate how logistical customer service requirement related to a specific product/segment situation will change over time.Whereas logistics is not capability that contributes to overall success.1. or even in a single route. For a network of n nodes. Customers may find the network more intuitive. day-to-day operations may be relatively inflexible.

In India TCI cobbles together backhaul arrangements between MNC‟s (Nestle. usually in one industrial sector. associated businesses. Example: . In this process more than two or more destinations are cobbled together in order to reduce wasteful practices in storage and transportation. Cobbling of 2 or more destinations:. The chief characteristic of such hub-and-spoke industrial districts is the importance of one or more large companies.In USA. General Mills Yogurt and Land O‟ Lakes Butter are transported in the same trucks on their way to the same supermarkets . also cost per unit gets reduced as per the increase in the distance and will benefit all cobbling partners. surrounded by smaller. n a spoke-hub network the hub is likely to be a single point of failure.This strategy is usually done by any organisation in order to minimize the cost of transportation and storage. 19 .hub. This strategy works well with the players who are not competitors but cater to the similar distribution channel. As in both these activities there are some fixed cost. J&J and HUL) for distribution in Uttaranchal with the advantages of lower costs. Careful traffic analysis and precise timing are required to keep the hub operating efficiently.

ensuring feedstock security at all the sites. Vadodara. At Reliance their constant Endeavour is to provide products and services that meet global standards. The Jamnagar site is integrated with the world class refinery. they offer a wide range of grades for diverse 20 .5 million tonnes per annum. weavers and spinners to help them compete in the international market. Over the years. The focus on Growth has helped them to grow as one of the world's largest producers of polymers.Introduction of Reliance Polyester Business Reliance Industries Limited. Reliance Testing Centre and Reliance Fiber Application Centre constantly develop and introduce innovative products for the textile industry. This growth has been achieved with state-of-the-art world scale projects and setting global benchmarks in product quality. Reliance has consolidated its position in the polyester business on the strength of its integrated operations. processes. Reliance invests significant amounts on R&D in the polyester sector. which include its valued customers. Reliance enjoys a portfolio of about 120 global patents in the polyester domain. Reliance is the largest producer of polyester fiber and yarn in the world. Gandhar in Gujarat . products and applications. standards and services. analytical instrument and process engineering facilities. Reliance's philosophy of 'Growth is Life' has truly manifested itself in value creation opportunities for its myriad stakeholders. the largest private sector company in India and the second largest manufacturer of polyester in the world. Reliance is today the country's largest manufacturer for Filament Yarn. with a capacity of 2. Staple Fiber and PET with a market share of more than 50% in all these product categories. With its strong market presence and wide product portfolio. Thus the Reliance Technology Center came into existence at Thane. in 1997. Polyethylene and Polyvinyl Chloride) is 4. Reliance endeavors to make available many innovative trends and products from across the globe to Indian knitters. The (2009-10) polymer production (Polypropylene. With a small team of 4 scientists and with chemical laboratory. through innovative research and technology development in materials. Reliance has always maintained a growth rate more than that of the industry. Reliance is the world's largest fiber and yarn manufacturer. thane and Mouda in Maharashtra are integrated with crackers. Based on their extensive interaction with the industry. set up an in-house research and development centre to achieve „global leadership‟ in polymer and fiber business. this centre has demonstrated a working model for carrying out business plan based on R&D with technological focus. Reliance's sites at Hazira. economies of scale and diversified product range. Reliance Technology Center.091 kilo tonnes.

agriculture. healthcare. Reliance has grown on the basis of 'what is good for the economy is good for Reliance'. Superior technologies. strong focus on R&D. automotive. housing.applications across packaging. 21 . latest IT-enabled services to support supply chain management and the end-to-end solutions offered across the value chain reinforce our commitment to customer satisfaction. water and gas transportation and consumer durables. Growth through Meeting Basic Needs of the Economy Businesses of Reliance addresses the basic needs of the economy from energy and materials to consumer products.


 To closely interact with the business group companies and technical groups for short. It is situated at about 35 Km from Nagpur on Mumbai –Kolkata National highway no. disciplined. To leverage synergy between Reliance's PET. target oriented and cost effective Research and Development activities. Products The products manufactured can be classified below Polyester Partially Oriented Yarn (POY) Fully Drawn Yarn (FDY) Dope Dyed Partially Oriented Yarn (DOY) Polyester Chips The manufacturing capacity is ~130 MT/day including all the above products. 23 . Vision  To establish a centre of excellence for Research & Development in PET homo and co-polymer fibers and resins through disciplined motivated and time bound execution of projects. MUKESH AMBANI (RIL) AND ANIL AMBANI (ADAG) Reliance Industries Ltd. Polymers and Fiber intermediate businesses. Nagpur Manufacturing Division is a basically Polyester Filament Yarn manufacturing unit based on Technology from Uhde Inventa Fischer (Switzerland). Fibers and Resin businesses' through innovative Research and Technology Development in materials.  To create. Mission Achieve 'Global leadership in Polymers.   To thrive to become a catalyst to the growth of company's polyester business. medium and long-term quality and process issues.Company profile RELIANCE INDUSTRIES LTD( RIL) which is company of one of the most successful business tycoon of India Dhirubhai Ambani after which the property is distributed to Mr. processes. products and applications through efficient. 6. maintain and pursue strategic research alliance for top end research activities.

Process of Logistics Made In RIL Polyester Unit Logistics in RIL Polyester unit is the process of movement of goods across the supply chain of the company. there are some definite objectives to be achieved through a proper logistics system by RIL. 3. Reduce total distribution costs 4. However. so as to extend the desired level of customer service at the least cost. Rapid Response. This process is consisting of various functions. These can be described as follows: 1. Chilled water 6. Creating time and place utilities. Cooling water 3. which have to be properly managed to bring effectiveness efficiency in the supply chain of organization. De-mineralized water 5.Utilities for Manufacturing: For manufacturing operations. They are: 1. Quality improvement. The primary objective of RIL is to effectively and efficiently move the supply chain and provide quality product. The major logistical function of RIL NMD. Dowtherm Heating media Objective of RIL Polyester unit to perform logistics. 5. Steam 2. Improving customer service. Filter water 4.1 24 . These are produced and distributed to the various users within the plant. Compressed air 8. MOUDA are shown in figure 6. 2. Requirement of power is fulfilled by self (132 KW) power supply unit in the plant. following utilities are required. Nitrogen 7.

and ropeways play a major role in the cargo movement and trade development of a country. Inventory control is a means for maintaining the right level of supply and reducing loss to goods or materials before they become a finished product or are sold to the consumer. ordering cost . It has significant share in the overall logistics cost of the firm and needs great deal of planning to control it. air.1 There are many cost areas in logistics and among them there are three major costs identified that are incurred in RIL NMD.Figure 6. social and commercial progress of country. sea. This part of the supply chain has a great impact on the company‟s ability to manufacture goods for sale or to deliver customer satisfaction on orders of finished products. In the movement of raw materials or products from the place of production to the place of consumption. corporations across the world are always finding different methods and techniques to reduce investments in the inventory. damage cost . rail. The costs related Inventory are carrying cost. Transportation modes such as road. and various techniques can be used to 25 . Hence besides the various activities associated with the lean supply chain. a business must have a firm understanding of demand. transportation is the most important component of the logistical system. Inventory control is one of the greatest factors in a company‟s success or failure. Inventory consists of the goods and materials that a retail business holds for sale or a manufacturer keeps in raw materials for production. exchange rate differentials cost 2. To manage inventory effectively. Transportation cost: Transportation is the barometer that measures the economics. inventory cost. Transportation provides tremendous benefits. Proper inventory control will balance the customer‟s need to secure products quickly with the business need to control warehousing costs. Inventory cost: Inventory is technically an asset but indirectly taxing on the profitability of the firm. MOUDA they are:1. inland water. It is the most visible element of logistics operation. and cost of inventory.

1999). depending on the inventories. et al. and several times value schedules have been developed based on such studies (Wardman 1998. These are so large that it is difficult to calculate the total benefits of all transportation activities. Warehouse cost: Warehouse acts as a supporting function for logistics and plays a key role in attaining the overall objectives of the logistical supply chain system.6. The owners should be conversant with the applicable charges. 3.measure these benefits (Goodwin and Person. EXISTING SUPPLY CHAIN PRACTICES IN RIL. Various studies have calculated travel time values relative to wage rates based on traveler behavior. NMD MOUDA CUSTOMER (REGION) DEALER (REGION) REGIONAL OFFICE SCM OFFICE (HOD MUMBAI) PLANT DISPATCH MATERIAL LOGISTICS Figure: . and travel time savings are often the greatest potential benefit of transport improvements. Warehouse can be a mother or distribution warehouse. Warehouse performance is judged by its productivity and its cost performance. Warehousing costs are levied by the warehouse owners and are an unavoidable expense for the companies that use the space. 1999).2 Order flow structure 26 . Small. Travel time is one of the largest transport costs.

From the figure 6.e. 27 .3 shows the dispatching cycle of the Reliance Nagpur manufacturing division in which inbound logistics practices takes place.In Reliance Industries Limited. Material pick up from warehouse invoice and exit.2 the order is interrelated with each other. Thus order flow as following regional customers approaches to the regional dealer in INDIA thus regional dealer take the order from the regional customer on every day regional dealer approaches to the regional office of the RIL . the material flow pallets of POY.All the regional offices in India approaches to the head of the department (HOD) supply chain Mumbai and give the demand /order /information about current state of the orders . Figure 6. manufacturing unit Nagpur manufacturing division. As per the order comes from customer polyester yarn dispatch to the customer by fast delivery as well by the normal delivery. Thus YTTS (yarn to transport service ) cycle for dispatching is basically the process of inbound logistics practices first the truck come in parking then link with sap then fulfill order as per dispatch order weighing is done . Similarly the information flow which is the major driver of the supply chain management thus the order flow from regional customer to the plant and finally dispatch to the customer through logistics i. It is the systematic process from truck parking note to the main gate exit.3 it is clear that there is proper coordination between customer and the manufacturer.e.thus the main order come from the supply chain office Mumbai to plant i. Nagpur manufacturing division order flow as shown in figure 6.

PL.3 YTTS cycle for dispatching in RIL. forms 38 ` WBX (Weight Bridge exit) MAX (Main gate exit) Figure:-6. LR.YTTS CYCLE FOR DISPATCHING TPN (Truck to parking) note) TOL (Truck to order link) WBN (Weight Bridge note) MPN (Material pick up note) INV. NMD 28 .

Loading is done after generating the MPN in loading section of warehouse Dept. loading of truck is done by taking the safety precaution to avoid the damages of finished goods and accident. MPN 4th step is the material pick up note in this step the loading and unloading of the material is done. 29 . Mouda. Invoice. LR. WBX Again in 6th step the weights of the loaded trucks to be measured in a specific tolerance limit. follow the YTTS cycle. lorry receipt. form 38 and form 408 are handed over to the truck driver in 5th step of YTTS cycle. form 38 Invoice document. Steps are as follows TPN 1st step is the truck parking note which is generated in the SAP module of the warehouse as soon as the parking of truck is done in the premises of RIL NMD. MAX After getting the green signal from WBX (weight bridge exit) note all the document is verified by security section and as the MAX main gate exit is generated truck is exit from the industry for transport.YTTS CYCLE For the dispatching of goods RIL NMD warehouse dept. placement of material order list. If any overloading or under loading is done it will be rectified and necessary steps is taken to avoid the accidents in transportation. WBN After that the 3rd step of YTTS cycle comes into picture in this step the weight of the truck is noted so that the capacity for loading the truck is known. TOL As the truck position is identified in the SAP module of warehouse then the truck is to link with the order this step is called as truck to order note which is generated in SAP module after TPN.

As per the requirement received from the process control dept.Manual data The following information is obtained from the manual data that is being provided by the warehouse department of RIL. POY. The polyester chips meant for the inter consumption are issued to the polyester department. Warehouse department is engaged in Dispatch storage document of the finished product namely filaments. Which are sold as a finished product in market? The basic operation involved receiving the data of the product. grades polyester chips.the detailed of material loaded in vehicle is prepared in the form of the polyester chips Dispatch programmed.supervisor of warehouse will load the material in to the truck after checking for the suitability of the particular truck for the transportation of the product . through e-mail or the daily chips bagging and consumption report. As per the programmed suitability the truck will be link with the order in YTTS cycle function TOL(truck to order link) with reference to TPN(truck parking note)and the delivery will be created under SAP WH module through transaction volume to delivery will be confirmed . The following additional documents are prepared for export menu of SAP-WM module and handed over to the transporter 30 . 1) Polyester chips analysis report 2) Consignee copy of LR(lorry report) 3) Driver copy of LR For export Dispatch containers are to be used for the delivery. NMD. Following document is prepared and handed over to transporter Invoice and the delivery challan printed through the SAP-WM module once the document is prepared the same is handed over to the transporter along with the following document. and draw yarn produced by polymerization and spinning dept. respectively. Document & delivery of finished product to the customer as per DO (dispatch order) Procedure for the Delivery 1) Delivery of the polyester chips As per detailed mentioned in the dispatch order . from POLY & the packaging dept.

After completion of the transaction.supervisor of warehouse will load the material in to the truck after checking for the suitability of the particular truck for the transportation of the product . 3) Delivery of the POY YARN waste & POY solid waste As per detailed mentioned in the dispatch order (ZPOR) .the detailed of material loaded in vehicle. Once the documents are prepared the same are handed over to the transporter along with the following document 1) Consignee copy of LR (lorry report) 2) Driver copy of LR 31 . delivery no.1) Excise invoice 2) Proforma invoice 3) AR4 Document. As per the program . The excise invoice can delivery challan printed through the SAP system.The detailed of material loaded in vehicle is prepared in the form of the waste dispatch programmed.suitability the truck will be link with the order in YTTS cycle function TOL(truck to order link) with reference to TPN(truck parking note)and the delivery will be created under SAP WH module through transaction volume to delivery will be confirmed . As per the programmed mentioned in DO suitability the truck will be link with the order in YTTS cycle function TOL(truck to order link) with reference to TPN(truck parking note)and the delivery will be created under SAP WH module through transaction volume to delivery will be confirmed . 4) Packaging list export 2) Delivery of the POY (cartons & bulk unit) & FDY in cartons As per detailed mentioned in the dispatch order (DO) . will be created in the system the in the MPN mode material will be picked from the warehouse stock which will be displayed on the screen and a/c MPN will be created the truck will be loaded by the supervisor as per the MPN (material picked up note) before loading the supervisor will check the suitability of the truck for the product transportation.supervisor of warehouse will load the material in to the truck after checking for the suitability of the particular truck for the transportation of the product .

incidents periodically and appraised management for the possible corrective action. and surroundings. 2) Day Officer (Assistant Officer). truck or any other unavoidable reason . Roles and Responsibility of the Authorities in Warehouse Department: The authorities are directly involved in the implementation of the logistic and warehouse functioning. To review the accident. Also material which cannot be delivered to customer due to various reason like unavailability of material.Daily report (refer to the dispatch & truck status report in pending order folder) will be sending to the marketing explaining the reason for non/delay in the deliveries. At the end of the dispatch programmed a detailed report for the day is prepared refers to the daily dispatch report.Mr. To achieve the management on the matter pertaining to the safety and OH for the dept. Godbole     To issue the necessary people requirement for the different activities and provide them in the respective areas To provide adequate training and instruction to follow WI(work instruction) Supervision over the safe working and the use of the people Maintaining and the checking of the people used in the ware house at specific intervals 32 . Every day morning the dispatch order (refer the delivery orders) are listed through the SAP and the material availability is checked depending upon the dispatching quality the truck material is placed.Action plan for the non-delivered or delayed delivery Goods manufacture by the CIPL (central India polyester limited) is to be sold exclusively to m/s Reliance industries limited. Following are the various personnel and the departments they are responsible for: 1) Head of the Department (Warehouse)-Mr. material will be dispatched to the respective parties. In the case of the shortage of material or the truck leading to the non delivery or the delay in the delivery of the customer priority list for the dispatch will be received from RIL marketing and as per their instruction . Atul P Joshi    To provide appropriate personal protective equipment during normal as well as the emergency situation.

Mouda The list customer are categorized as followsMajor customers 1. Balaji Filament Ltd.3) Contract Supervisor       Verification of the healthiness of high reach /rangers through checklist Schedule preventing & breakdown maintenance of all the vehicles Providing all the necessary people to their workplace Submit the list of employee to the time officer Provide ID card to all the employee Safety training to all the employee Transport Agents Used For the Better Logistic Practices in RIL Polyester Nagpur Manufacturing Unit For Domestic Market 1. BAL Roadlines 6. Ankita Logistic 4. (Surangi) 33 . (Niyol) 6. Kandoi Polytex Pvt. Seeking Transportation Customers of RIL NMD. Pioneer Flexo Pack Pvt. Reliance Industries Ltd. Rapid Transport Agency 7. Ltd. (Daman) 2. Ltd. Simrans Transport Agency For International Market 1. PNR Logistic 5. Reliance Industries Ltd. Road lines Transport 3. Shipping Company 2. Reliance Industries Ltd. Ltd.(Salen) 7. Jaswant Sons 2. PRC Logistics 3. (Silvassa) 5. (Dadragadh) 4. (Daman) 3. Sunita Tex Spin Pvt.

Suraj Industries Pvt.Other customers 8. 14. Syntexture Pvt.(Mani Daman) 11. (Silvassa) 9. Bajari Filament Pvt. Ltd. (Silvassa) 10. Ltd. Valson Industries Pvt. 13. Ltd. 34 . Sunshine Fiber Pvt. SRV Polytex Pvt. Shrinandi Industries Pvt. Ltd. Ltd. Ltd. Ltd.(Silvassa) 12.

Primary data used in the present project has been collected through observation and personal interview of the employees of the organization. the study of various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Commercial sources etc. It may be understood as a science of studying how research is done scientifically. Indexes. A) Research Design The research design is exploratory research design. A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data.RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problems. Exploratory Research Design: The exploratory study is particularly helpful in breaking broad and vague problem into smaller. that is collected the following way– Primary Data: The primary data is that data which is collected fresh or first hand and for first time. In the exploratory research design literature survey is conduct. more precise sub problem statements. Secondary Data: Secondary Data Internal Data External Data Various internal reports of the firm. B) Data Collection Design Data Type There are mainly two types of data available. In this. 35 . The study is based on both primary as well as secondary data. Primary data and Secondary data. Exploratory studies help in formulating hypotheses for the further research.

Company‟s website Company catalogue. secondary data can be divided into two categoriesi. Sample design may as well as lay down the number of items to be included in the sample. External data: External data are generated and collected from variety of events and sources outside the firm‟s premises. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. source list. Depending upon the gathering sources. parameters of interest.   ii.Type of universe.     Business magazines Journals Various books Various websites C) Sample Design A sample design is a definite plan for obtaining a sample from a given population. sampling unit. size of sample. Budgetary constraint. they are:.. Individual interviews 36 . sampling procedure Sample size: 5 employees of the company Sample Technique: convenience sampling. D) The tools that are used in collecting data are    References Individual meetings.Secondary data is that data which is collected for some earlier research work and are applicable in the study the research has presently undertaken. Internal data: Internal data is procured by the research in normal operations within its own premises. Certain steps are to be taken into concern for selecting sample. Secondary data is being collected from the records and reports of the company.

They capture complete data about your company's shipments and provide useful management reports to further improve your transportation process. Clients order service via electronic data interchange. They identify the carrier that will provide the lowest cost and best service for a customer's shipment. they offer transportation savings opportunities to their customers. In addition. and offers cost savings opportunities.  Convenience. They combine knowledge and technology to integrate transportation management service with:     order management fulfillment kitting and parts sequencing supply chain consulting and design 37 . Then.  Discipline & Control. They identify delivery dates. Their transportation management service combines sophisticated information technology with human resources to improve the inbound and outbound transportation processes of their customers. or fax. They audit your freight bills and allocate charges to the appropriate accounting code within your organization. technology and quality of product to optimize cost and service. Integrated Logistics Increase inventory visibility and velocity with integrated logistics. a coordinator alerts the selected carrier and dispatches a vehicle. A team of dedicated coordinators is assigned to each account. Their service simplifies carrier selection. improves logistics management. phone. As a result of their carrier network and superior technology. they determine the right mode of transportation for each shipment. Here's what company can expect from their transportation management service:  Transportation Savings. cost-effective process for managing transportation and inventory carrying costs.Analysis of data RIL NMD. the Internet.  Information. They streamline transportation management by providing a single point of contact for all of a customer's shipment and delivery needs. MOUDA combines people. paperless invoices. then. they audit carrier compliance to their customers' specifications. The result is a simplified. In addition. they offer the opportunity to reduce administration costs through electronic.

3. IL: Irwin. Excellent utilization of IT. Opportunities. Well established warehouse. C. Should invest in other product line also. Human resource limitation 2. Roland Christiansen..Interpretation of data using SWOT ANALYSIS SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. 1969). and William D. 4. Kenneth Andrews. Small plant size. Low communication. 4. 5. 38 . 6. Text and Cases (Homewood. 3. No more parking facility in premises. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. Weaknesses. SWOT (sometimes referred to as TOWS) stands for Strengths. 4. 5. Less skilled workers. Guth in Business Policy. 3. 2. 4. The SWOT framework was described in the late 1960's by Edmund P. execution. 2. and Threats. tie-ups with more reputed 1. Less qualified employees. Look for creativity and innovation in the business. Less support from HR dept. Good in strategy formulation 1. Learned. Make collaboration with local companies. Contract basis labors appointed.. Good quality product. Possible customer. 3. Demand variability is high. STRENGTH WEAKNESS 1. Strong Management Team. OPPORTUNITIES THREATS 1. and 2. Low cost leader.

The RIL NMD.Interpretation and Analysis of data on Logistic Practices of RIL NMD. every department uses a separate module of the SAP. 3. Good quality product. Well established warehouse. One of experience during loading of truck by bulk of POY was that the warehouse incharge monitored every process so as to insure correct loading of truck. Strengths 1. loading of vehicle etc. availability of trucks. discussion and strategy formulation is done at every stage of operation . As per my research work on the logistic practices in RIL NMD I have analyzed certain strength. HR unit. Mechanical unit. purchase order. While doing any task in the organization. Marketing unit. 5. Excellent utilization of IT. Mouda As per the study of the logistic practices in RIL NMD. there are certain loopholes which can be improved by taking corrective action and rectification of the weakness. quality checks. Firm has got a good management team beginning from Security. keeping available sufficient space for the moment of materials and the vehicles.They mainly focused on the quality of the product. Polyester unit. to Warehouse unit. Instrumentation unit. Good in strategy formulation and execution. 39 . weakness. 2. Strong Management Team. Quality and process unit. hydraulic unit. They use SAP system for the proper utilization of the information regarding the availability of goods. Every department is perfect in their work.after getting the approval from the higher authority execution is done by proper monitoring. opportunity and threats. Packaging unit. Processing unit. They are enjoying their work while working in the RIL. Mouda during the summer internship period and from the questionnaire study author can interpret that as the company has one of the subsidiary branch of the reliance group there are no more improvements is to required. 4. MOUDA received a award for BEST QUALITY OF THE POLYESTER YARN in 2008 . Process unit. The area of warehouse is big in size and it is designed in such a way that more than 160 metric tonnes of the goods can be kept in the warehouse.

Should invest in other product line also. Less qualified employees. Weaknesses 1. Not automated Automation in the firm will reduces the cost of inventory. packaging and labor. and the labor work . They also have a medical facility in the premises and also follow all the environment friendly guidelines.6. The HR department of RIL NMD. 3. Less support from HR dept. No more parking facility in premises. Dependency on the supplier It is also one of the weaknesses of the firm that it is totally dependent on the supplier for the procurement of the raw material (PTA & MEG). from Warehouse Department. Mouda assume themselves as a powerful one than the other departments. Possible tie-ups with more reputed customer.So there is lack of qualified and experienced employees at present in the RIL NMD 3. They have a opportunity to tie-up with the large leading firm in textiles business other than domestic firms. 4. Safety and security is of high edge Security and safety department of the RIL NMD is one of the successful key factors of the firm. To became a business strengthen there is the need of creative and innovative ideas in automation. 2. 40-50 truck parking facility is available . 40 . Joshi. Opportunities 1.It is insufficient and therefore creates problem during parking of vehicle. For example warehouse in charge of RIL Mr. It is due to this behavior that some of the senior officers switch to other firms of same business. Creativity and innovation in the business. switched over to Indorama Inc. 2. packaging. As polyester chips are also used in various products manufacturing so there is opportunity to expand the business in the other product line. The permanent employees working in reliance are 200 only and rest of the workers are working on contract basis . the firm is not automated so that cost is increased on inventory.

Communication play a vital role in the success of the any business organization sometimes which is good of the other competitor if communication is low between the department it creates a problem in various activity of business processes. The pace of some organizational function may not keep up with current requirement. dedicated expert cannot be hired for every function requirement. Human resource limitation As the site being small. 4. Small plant size RIL NMD has a small plant size with limited production capacity other than their competitors difficult to match the operational cost of bigger units like Hazira complex. Demand variability is high. Low communication. In this type of the product demand fluctuation is occurs which depend on the various type of the parameter so that demand variability is high. RIL fresh farming They are also generating the revenue from fresh farming of RIL but now it is a small scale business and sale only inside the firm. 3. 2. Threats 1.4. 41 . they can increase their sale by selling outside the firm.

Limitations and Future scope of Project 42 .

The time & cost plays an important role when one goes for a particular study. data collection is not vast and comprehensive. Research work on the implementation of „Hub and Spokes‟ and „Cobbling‟ models in the company can be carried out. Due to the time & cost constrains the large sample is not taken.Limitation of project     The proposed suggestions and recommendations are limited to RIL NMD only. Future scope of project research: Casual Research can be further carried out on this topic. books and journals of the authors. 43 . Due to sensitivity nature of information. The study is based on the secondary data published in newspapers.

2) Increase in transportation and warehouse cost As the 3rd party logistics is working. of vehicles are less Vehicles available with company are not enough for the various activities so that Company has to increase the number of vehicles owned by them at least to handle their local transport. 4) Safety and security There should be necessity of CCTV camera‟s to inspect all the operations and processes for the safety and security of an organization. so that Transportation cost and Warehouse cost in this study has emerged as the major costs to have major effect on the profit generation. 3) Less awareness of logistics model Overall logistics function is done under the direction of Mumbai headquarter but for the proper functioning of logistics operation they should not ignore the development in the field of SCM and Logistics and should update themselves with the new technologies that are emerging globally. 44 . 5) Use of new technology Also there is necessity of AUTOMATION in Warehouse like WMS (warehouse management system) & PLC (programmable logical control). Hence.Problems and related suggestions 1) No. Company must take appropriate steps in order to reduce these costs. 6) Skilled workers There must be reshuffle in departments of employees to gain the different working knowledge of the firm and improving skilled of labour.

 Optimization of transportation routes and costs.  Improvement of delivery services  Develop Relationship with Supplier. However.  Minimization of production.CONCLUSION In this project as a student of Operation Management. 45 .  Optimization of the network structure.  Reduction and optimal allocation of inventories. the author has understood so many things that one is not going to learn in the books only. In this research following points had been recognised as vital in the field of logistics and supply chain management. Logistics is the part of Supply chain management which is the heart of any business because every organization growth depends on its supply chain. distribution. when it comes to practical implementing the theories learnt in course is difficult to implement. Summer Internship Program has been a learning experience and after coming back from Summer Internship Program. projectee has studied and understood the concepts of supply chain and logistics management. That is why along with the theoretical knowledge one must also be exposed to the real life situation for getting idea of the real life situations. storage and fix costs.

Bibliography 46 .

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com on 20th Feb and 28th on 3rd march 2011.2011      http://www. on 12th and 20th Jan.6th and 7th Feb 48 . 2011 and on 5th.scribd. 0n 18th Feb. http://wikipedia.htm on 6th march 2011.going-global. 2011 http://wikipedia.

Annexure 49 .

INV.Invoice generation after confirmation of physically material loading in truck as per MPN.Question related to logistic practices in RIL NMD. WBN.Gross weight of Truck for matching with tare wt & material wt. Called truck reporting number.Packing material. Business Supply chain Manager interacts with Logistics team for their various requirements as per Plan.O) team carried out by local logistics at NMD. 50 . TOL.Empty truck weighment.Material Pick-up note i.e.MOUDA? Logistic Controlled in RIL From HO Mumbai .Orders Linking with the truck reporting number in system.MOUDA? It is reverse Logistics Model used at NMD. i. Q .4 what type of logistics model use in RIL NMD. liquid Product movement. to cross check with Invoice value. 1 can you please elaborate YTTS cycle of warehouse? YTTS (Truck tracking System) TPN. same trucks after unloading at NMD carries the Finished products to Silvassa/ Surat area Customers. WBX. finished product Dispatch .e.2 how logistic process done in RIL and if any structure follow in RIL NMD.e.Truck parking note i.MOUDA Q. MPN. Selection of material for loading in truck as per order. MGX – Main gate exit after all confirmation from Factory. Truck reaches to plant carrying the Raw Material used in polyester manufacture & Packing material from Market .3 what is the role of logistics in manufacturing firm like RIL NMD? Logistics Division mainly controlled from Mumbai. entrance of truck in Plant parking will generate a identification no for future reference while called at Warehouse for Loading. All RAW Material . Q . export container Tracking & follow-up with Vendors in consultation with (H. a separate logistics team arranges the trucks at required Location through out the country as per Business requirement for Solid. Q . 99% Side open truck only used for finished product movement. If shortage of Truck of trucks for POY dispatch then arranged from local Market.

7 What are the drivers of supply chain management? The main functions of Supply Chain Management are uninterrupted supply of material to the customers. This includes central front end marketing. FDCs and Plant warehouses.5 How to manage the inventory? Day to day inventory reports is prepared at the start of day. WH department for improving the organizational competitive position? Reliance is committed to meeting customer requirements through continual improvement of its quality management systems. Q. Reliance shall sustain organizational excellence through visionary leadership and innovative efforts. On-line Customer complaints. The trucks are placed depending upon the order quantity there by using the fullest capacity of truck. Q. Age-wise inventory is analyzed at the end of month & the report is sent to Head Office for liquidating any material which is more than 30 days old.8 What are the strategies adopted by RIL.6 What are the strategies used by RLL for supply chain management for RIL unit? RLL places the trucks required for movement of incoming & out going materials.9 How will you rectify your customer? Reliance Industries Limited has a system to capture data on Customer satisfaction/ dissatisfaction levels. Feedback regarding the inventory rise up or decline is given to Production Planning department for necessary product changes in production to maintain the inventory under control. Product performance Report and Trial feedback are available through WAN/e-mail. 51 . dealers. regional offices. Q. The finished product if dispatched to market in the trucks which are coming with raw material thereby saving the freight. the main thrust is to be given on customer‟s delight includes timely & quantitatively delivery of product to the customer. Regular follow up is done for continuous moving of material to market in case any of the material is stuck up. supply chain management team.Q. Clubbing of orders of different customers in the same region is also done to utilize the 100% efficiency of truck. Q. To improve organizational competitiveness.

Transportation cost 3. MOUDA they are:1.10 What are the basic logistic activities done in the firm? All the processing of the RIL NMD is done by using the SAP software        Order processing Inventory management warehouse Transportation Material handling and storage Packaging Information flow Q.Q. Warehouse cost 52 . Inventory cost 2.11 What type of major cost to be incurred while doing the logistic activity in the firm? Three major costs identified that are incurred in RIL NMD.