STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

Chapter I

INTRODUCTION

India is being touted as the land of opportunity for logistics service providers all over the world. The demand for logistics services in India has been largely driven by the remarkable growth of the economy, projected to grow at 9-10 per cent in next few years. The Indian logistics market valued at $125 billion (2010) a couple of years ago, is expected to grow at a CAGR (compounded annual growth rate) of 7-8 per cent. It is felt that the growth will continue, and might even scale newer heights, as the economy is experiencing a retail boom with Western companies such as Metro, Wal-Mart planning to start operation in this country, and large local retailers such as Shoppers Stop, Pantaloon, RPG and Big Bazaar planning to expand their operations in smaller cities. Broadly speaking, the Indian logistics sector, as elsewhere, comprises the entire inbound and outbound segments of the manufacturing and service supply chains. Of late, the logistics infrastructure has received lot of attention both from business and industry as well as policy makers.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

The logistics industry in India is evolving rapidly and it is the interplay of infrastructure, technology and new types of service providers that will define whether the industry is able to help its customers reduce their logistics costs and provide effective services (which are also growing). Changing government policies on taxation and regulation of service providers are going to play an important role in this process. Coordination across various government agencies requires approval from multiple ministries and is a road block for multi modal transport in India. At the firm level, the logistics focus is moving towards reducing cycle times in order to add value to their customers. Consequently, better tools and strategies are being sought by firms in order to enhance their decision making. Here two key areas that require attention in managing the logistics chains across the Indian business sectors cost and reliable value add services. Logistics costs (i.e., inventory holding, transportation, warehousing, packaging, losses and related

administration costs) have been estimated at 13-14 per cent of Indian GDP which is higher than the 8 per cent of USAs and lower than the 21 per cent of Chinas GDP . Service reliability of the logistics industry in emerging markets, like India, has been referred to as slow and requiring high engagement time of the customers, thereby, incurring high indirect variable costs. The expanding industrials scenario calls for efforts to tackle related problems Poor condition of roads translates directly to higher vehicle turnover, which in turn pushes up the operating costs and reduces efficiency. Complex tax laws and insufficient technological aids, the use of IT is limited. Unorganised management chain. Needs high capital and technology support.

Some Peculiarities of the Indian Supply Chains The Indian logistics sector has typically been driven by the objective of reducing transportation costs that were (and often continue to be) inordinately high due to regional concentration of manufacturing and geographically diversified distribution activities as well as inefficiencies in infrastructure and accompanying technology.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

Figure 1 shows the relative value of transportation costs vis--vis other elements of the logistics costs in India. The transportation industry is fragmented and largely unorganized a large number of independent players with regional or national permits that carry freight, often with small fleet size of one or two single-axle trucks. This segment carries a large percent of the national load and almost the entire regional load. This fragmented segment comprises owners and employees with inadequate skills, perspectives or abilities to organize or manage their operations effectively. Warehousing, has also been typically dominated by small players with small capacities and poor deployment of handling, stacking and monitoring technologies.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

OBJECTIVE OF THE PROJECT

Every project or activity is always incomplete without clear objectives. Objectives are a necessary requirements foe starting any study or work and to be set up and properly planned in a pre organized manner. Objectives are the thing one is trying to active a reach or capture and which is actual / real. To know the overall operational efficiently and performance of the company. To get knowledge about operations. To learn and understand about operation of Supply chain management including how material transport form one place to another place. To learn how Supply chain management and logistics work in companies. To know the position of the company. To learn other activities related to company.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

NEED OF THE PROJECT

Until 20th century business as well as distribution channel used traditional delivery process. Then Information technology bought up the new dimension to the whole delivery process. It has given the connectivity to organisation, marketing, finance, operations, logistics were working independently before industrial revolution. But now supply chain management can be viewed as a decision makes process between strategic and operation. It is also seen as a mechanism which completely lies between vertically integrated firm where the whole operation takes place with the mix of coordination and effective management. Therefore I decided to work on Supply Chain Management.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

SCOPE OF THE PROJECT

The Project analyses the performance of Supply Chain management in company and hence gives a brief idea about the present competitors. This will provide information about company position and the weakness of the company in terms of SCM. This project will guide them what is weakness I found during internship and to get freedom from that weakness. This will also guide them where they are very strong and weak.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result Research Design Quantitative technique is being used that help to make relationship between theory and research. The design that is being followed in this case is descriptive one. Since the objective is to analyse the supply chain management decision of Kumar Logistics. Basically descriptive research is of two types. Single cross sectional and multiple cross sectional. Since in this I am taking one sample and drawing the conclusion on that basis it is single cross sectional. Data sources Data collection is done with the help of two methods. Primary Data Secondary Data.

Primary Data Collection: In this case data collected directly from the responded in the questionnaire that is being used in this process. The data is collected by interaction mode from the distributor and wholesaler. The data was collected by the distributor and wholesaler in a disguise mode. Another way of interaction is telephoning interview with the Vendor/wholesaler.
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Secondary Data Collection: The secondary data is basically used for the purpose of enhancing the concept clarity regarding different variables of supply chain. The sources are research articles, journals, magazines and internet. o Annual records of the Company. o Magazines & Journals. o Textbooks, Internets & others.

2. Sample Design

Sample Unit The sample chosen for this study is Vender and wholesaler who deals in Kumar Logistics. Sample frame The sample chosen for this study is wholesaler and vender keeping and selling in Kumar logistics

Time and Place- Kumar Logistics pvt. Ltd.

Type of sampling Sample technique is used is convenient sampling.

Sample Size. Sample size is 10

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

LIMITATIONS OF THE PROJECTS

The project has following limitations:Inaccessibility in some of the operation areas is a major limitation of the study.

The study is mainly carried out based on primary operations which are carried out in the beginning the final operations are not carried out due to lack of time.

As the study was for short span of 8 weeks and due to lack of time other areas could not be well focus.

Primary data becomes difficult to gather due the confidentially polices.

The analysis of the data was completed due to vastness of data.

Initially it was hard to collect relevant data as I was unaware of the sources from which I was supposed to collect data.

STUDY OF THE FRAMEWORK OF THE SUPPLY CHAIN MANAGEMENT

Chapter- II

COMPANY PROFILE

The Kumar Logistics Pvt. Limited is a formed under Kumar Groups and Services which provide all services which provide all services under one roof. Kumar Groups also has other Services like Transport, Warehousing, Tours & Travels and Builders. It is a total logistic management organization providing freight forwarding and logistic services under one roof. The activities covers the whole spectrum of air, Sea and land movements of in and out bound cargo .Our aim is to develop an efficient and professional approach in meeting requirement and budget. They are always prepare to consider any request/idea over and above our standards and are able to assist with special provision. In fact Some of their activities has been developed and grown from these type of request/idea. No matter what product, what size, or what country you are shipping to or from Kumar Services have a transport solution to meet your budget and your deadlines. One contact with multiple solutions for one world, made easy

Mission: Customers have the power to choose in this competitive and open market. Our aim is to provide high quality service along with fair and competitive pricing Quite simply Kumar Services provide you with peace of mind through brilliant service delivered by brilliant people 24 hours a day, 365 days a year.

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Vision:Our Vision is to be India's most trusted transport and Logistics Company. India's leading provider of integrated multimodal solutions for the logistics of bulk and container cargo, Kumar is the single window for businesses that seek a seamless supply chain across rail, road, port, and sea. QUALITY POLICY: We are committed to providing safe, dependable transportation service to our customers and to meet our goal, organization shall strive,

Prompt & Positive response Team Performance On time delivery of goods To reduce customer complaints With a mission to make continual improvement in all aspects.

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Chapter- II

ORGNIZATION CHART

BOARD OF DIRECTORS

Managing Director

SCM Managers

Operation Manager

Finance Managers

HR Managers

Sr. Executive

Executive
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BENEFIT GIVEN BY THE COMPANY

Company provide provident fund to the workers. Company provide retirement fund at the time of leaving the company. Company provide bonus to the workers once in a year. Making increments to the workers in salary. Company provide chances of promotion to the employee. Discussion of visioning exercise output with chairperson and senior management of the Operation.

Company also discuss their employee how reduce cost of transportation and make profit. Company help their summer trainee to know company very well and their rules and regulation and other activities related to company.

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Chapter -III

THEORETICAL BACKGROUND

Supply chain management (SCM) is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product and service packages required by the end customers in a supply chain.[2] Supply chain management spans the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It is also defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."[3] SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach The key supply chain processes are:

Customer relationship management Customer service management Demand management style Order fulfilment Manufacturing flow management Supplier relationship management Product development and commercialization Returns management

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Much has been written about demand management. Best-in-class companies have similar characteristics, which include the following:

Internal and external collaboration Initiatives to reduce lead time Tighter feedback from customer and market demand Customer-level forecasting

One could suggest other critical supply business processes that combine these processes stated by Lambert, such as: a. Customer service management b. Procurement c. Product development and commercialization d. Manufacturing flow management/support e. Physical distribution f. Outsourcing/partnerships g. Performance measurement h. Warehousing management a) Customer service management process Customer relationship management concerns the relationship between an organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships:

determine mutually satisfying goals for organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers

b) Procurement process Strategic plans are drawn up with suppliers to support the manufacturing flow management process and the development of new products. In firms whose operations
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extend globally, sourcing may be managed on a global basis. The desired outcome is a relationship where both parties benefit and a reduction in the time required for the product's design and development. The purchasing function may also develop rapid communication systems, such as electronic data interchange (EDI) and Internet linkage, to convey possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers involve resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling, and quality assurance, many of which include the responsibility to coordinate with suppliers on matters of scheduling, supply continuity, hedging, and research into new sources or programs. c) Product development and commercialization Here, customers and suppliers must be integrated into the product development process in order to reduce the time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched with ever-shorter time schedules in order for firms to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must: 1. coordinate with customer relationship management to identify customer-articulated needs; 2. select materials and suppliers in conjunction with procurement; and 3. develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the given combination of product and markets. d) Manufacturing flow management process The manufacturing process produces and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible in order to respond to market changes and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency in meeting customer demand. This process manages activities related to planning, scheduling, and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing

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sites, and maximum flexibility in the coordination of geographical and final assemblies postponement of physical distribution operations.

e) Physical distribution This concerns the movement of a finished product or service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product or service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing. Thus it links a marketing channel with its customers (i.e., it links manufacturers, wholesalers, and retailers). f) Outsourcing/partnerships This includes not just the outsourcing of the procurement of materials and components, but also the outsourcing of services that traditionally have been provided in house. The logic of this trend is that the company will increasingly focus on those activities in the value chain in which it has a distinctive advantage and outsource everything else. This movement has been particularly evident in logistics, where the provision of transport, warehousing, and inventory control is increasingly subcontracted to specialists or logistics partners. Also, managing and controlling this network of partners and suppliers requires a blend of central and local involvement: strategic decisions are taken centrally, while the monitoring and control of supplier performance and day-to-day liaison with logistics partners are best managed locally. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. Taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can both be correlated with a firm's performance. As logistics competency becomes a critical factor in creating and maintaining competitive advantage, measuring logistics performance
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becomes increasingly important, because the difference between profitable and unprofitable operations becomes narrower. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts, internal measures are generally collected and analyzed by the firm, including cost, customer service, productivity, asset measurement, and quality. External performance is measured through customer perception measures and "best practice" benchmarking. h) Warehousing management To reduce a company's cost and expenses, warehousing management is carrying the valuable role against operations. In the case of perfect storage and office with all convenient facilities in company level, reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper area, area for service station, stock management system etc.

Range of Services
Custom Clearing Services Kumar Logistics a leading Customs Clearing Agents in Mumbai. With updated customs regulations and procedures we handle clearance of Import and Export consignments by sea, air and road more efficiently and easily. The main services in Custom Clearing Services include advice to the clients in preparing documents related to Import and Export, completion of appraisement and examination procedures and payments. After the custom formalities are completed they deliver the consignments to the said destination as per the clients needs.

Company have executed even the Big International projects laid in India by multinational companies.

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As a Customs Clearing Agents offer wide variety of services in order to help the clients for Import and custom clearance. For Import consignments it require documents such as original invoice, packing list, bill of landing/airway, bill endorsed by the importer or bank, insurance certificate, purchase order or letter of credit, import license and catalogue or literature if the goods are chemical for custom clearance services. Whereas for export clearance, export license or permit and sale contracts are required along with Invoice, Packing list and shipping instruction.

After receiving the said documents our qualified professionals try to provide the best possible benefit to the clients with reference to the custom notifications and exemptions. This helps in avoiding the delay in clearance and other detention charges such as heavy demurrage etc. Normally try to clear both import and export shipments within two to three days after the receipt of the document. Custom Clearing Services ( Export/Import) Guidance and consultancy on pre and post shipment services Liaoning and follow up with various Govt Organisations Documentation procedures i.e. preparation and handling of documents All post shipment formalities and endorsements Drawback / DEPB and several other export benefits

Thus qualified workforce very efficiently arranges for the documents needed by the customs, transfer and receives shipments, scrutinize the goods and lastly handle the cargo at airport and ICD's to the clients warehouse

Transportation

International Cargo/Export Shipping Co. has been serving the International Shipping Industry for many years, in close collaboration with many freight forwarders, NVOs, and Moving & Relocation companies throughout the West Coast, and nation wide.

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As

member

of

the

Pacific

Coast

Shippers

Association

(PACSA)

since

1991, International Cargo/Export Shipping Co. has large service contracts with several major steamship lines. This enables company to offer excellent contract rates to our Freight Forwarding and Moving industry clients, for FCL shipments on a wide range of commodities, as well as excellent co-load rates for individual vehicles and LCL freight of all kinds in our consolidations.

Neutrality Guarantee Companys long standing and on-going relationships with Kumar logistics shipping industry clients is a testament to our strict adherence to this policy. Kumar also offer our Freight Forwarding and Moving Industry clients a full range of Export Packing & Crating Services, as well as perform US Customs Export Clearance for vehicles, on their behalf.

International Cargo/Export Shipping Co., based on a mutual Guarantee of Neutrality and Non-Circumvention, will perform estimates, as well as packing, wrapping and loading of HHG/PE in export containers, in our local area of Southern California, on behalf of our Freight Forwarding and Moving Industry clients from other areas, while they do likewise for us in their respective areas.

Company also directly perform the relocation of its own customers (private parties, corporate and diplomatic personnel), handling their individual packing &

wrapping, crating and overseas shipping of their households and vehicles in containers, as per illustrations herein.

Through International Cargo's hubs in major European ports (London, Le Havre, Bremerhaven, Rotterdam and Antwerp), they perform on-carriage to most European inland destinations, the Middle East and Africa. They also serve Scandinavia, Russia and former Soviet nations, the Mediterranean, Australia/New Zealand, the Far East, Central and South America.

Freight Booking Services

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They are one of the leading AIR FREIGHT FORWARDERS providing air freight booking services that can meet all your global import export consultant needs around domestic as well as international market. Whether you're transporting smallest to largest consignments to any part of the world, they reach your freights to the designated place at for earliest.

They are one of the leading Sea Freight Forwarders providing sea freight booking services that can meet all your global import export consultant needs around the world. Whether you're transporting smallest to largest consignments to any part of the world, we reach your freights to the designated place at the earliest.

FCL/ LCL Services

The respective meaning of the terms FCL/ LCL Services is as follows:

FCL ----- full container load; full carload LCL ----- less than container load; loose container load; less than carload; loose carload FCL versus LCL The word carload relates to the rail car. The FCL and LCL are differentiated, in practice, on whether the 'whole container' or 'not the whole container' is intended for the consignee. The FCL means the load reaches its allowable maximum (or full) weight or measurement. In practice, however, the FCL in the ocean freight does not always mean packing a container to its full payload or full capacity. For example, an exporter books a 20' container that is intended for a consignee at FCL flat rate of US$1,500. If the consignment
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occupies 500 cu. ft. and weighs 5,000 kegs. Only, the case is still FCL and the exporter has to pay US$1,500.

If an exporter intends to pack a container to the full capacity or full payload with the consignments of two or more consignees for the same destination, the case is LCL and the carrier will charge the LCL freight rate on each consignment. In the LCL arrangement, the shipper is required to deliver the cargo to the carrier's container freight station for containerization, thus there is no guarantee that the two or more consignments from the same exporter will share the same container. In some cases, the exporter is allowed to pack the container at their premises in the LCL arrangement, and then the carrier uses that same container to pack in more cargo from other shipper(s) to make a full container load at the container freight station.

Referring to the Case Sample: Container Selection (1), if the importer maintains the order at 1,500 cartons and no forwarder is involved, and if the high cube container service is not available, it may mean that there will be one 40' FCL plus 135 cartons LCL. A combination of FCL and LCL in a consignment, which is a typical aftermath from the cargo overflow, is a poor exporting and importing practice, taking into account the additional freight and other charges in both countries. All 1,500 cartons can be shipped by LCL, but the freight cost can be higher and the cargo may be exposed to a higher risk of damage and loss.

Dry Cargo Container 20' Steel Dry Cargo Container 40' Steel Dry Cargo Container 40' Hi-Cube Steel Dry Cargo Container 45' Hi-Cube Steel Dry Cargo Container

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Refrigerated Container 20' M.G.S.S. Refrigerated Container 20' Aluminium Refrigerated Container 40' M.G.S.S. Hi-Cube Refrigerated Container 40' Hi-Cube Aluminium Refrigerated Container

Special Container 20' Full Height Open Top Container 20' Flat Rack Container with Four Freestanding Posts 20' Flat Rack Container with Collapsible End 20' Fuel Tank Container 20' Power Pack Generator Container 40' Flat Rack Container with Four Freestanding Posts 40' Flat Rack Container with Collapsible End 40' Full Height Open Top Container 40' Hi-Cube Hanger Container

EXIM Licensing Services

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Company render consultancy services to various exporters and importers in the realm of export import licensing. They are committed to provide our clients best possible solutions with perspective, integrity and dedication. They offer our clients DEPB Licensing, EPCG Licensing and Advance Licensing services.

Advance Licensing Services They provide consultancy services to exporters and importers for getting advance license. As per the Exam policy, advance license can be issued for permitting duty free import of inputs to be utilized in the export products after making normal allowance for wastage. team is well versed with all the necessary processes and assists the clients in getting the license without any type of hassle.

Documents required for getting advanced license are:. IE code certificate copy . RCMC or FIEO . Digital key and password (DGFT) . Performa Invoice . Letterhead 10 sheets . SSI or IEM certificate . Import Order copy/Re-export order copy . Chartered accountant certificate

DEPB Licensing Services They offer our clients consultancy services for DEPB licensing. DEPB (Duty Entitlement Pass Book Scheme) is an export incentive scheme in which any exporter can get transferable DEPB license under the DEPB rate schedule of the policy. They help our clients in the documentation process and undertake all the legalities and paperwork for getting DEPB license.

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DEPB Licensing requires the following documents:. IE code certificate copy . RCMC or FIEO . Digital key and password (DGFT) . Invoice . Packing list . Shipping bill . SSI Certificate (manufacturers only)

EPCG Licensing Services With the help of qualified professionals, They offer all types of consultancy services related to EPCG Licensing. Under EPCG scheme, a license holder can import capital goods at concessional rate of customs duty of 5% and without CVD and special duty. They provide consultancy services to clients for getting EPCG license within stipulated time period. The important documents required for EPCG License are: . Digital key and password (DGFT) . Performa Invoice . Letterhead 10 sheets . SSI or IEM certificate . Machinery catalo . Chartered engineer certificate . Chartered accountant certificate

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Export & Import

Export Pre-Shipment, Post-Shipment Documentation, Customs Formalities, Duty Drawback International Freight Forwarding Export Consolidation: Sea Multimodal Transport Operator NVOCC Sea Cargo Booking Buyers Consolidation

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Ancillary Services: Warehouse Packing and Palletization Tracking of Consignments, Chasing/ Follow-up with Supplier/ Buyer Buying Agent Procurement and Sourcing Advisory Services Pre-Security of Documents, Import Policy & Customs, Tariff, Insurance Matters & Claims, Bond Cancellation, Duty Drawbacks, Information on Foreign Country Regulations, Tariffs and Costs

Benefits Charges for export cargo are low. Having vast space for storage of cargo Ensuring security for all export cargo Packing and Labelling can be done Packing and Labelling can be done Utmost care initiated while loading Online documentation Speedy documentation Every week vessel sails to all countries

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SWOT Analysis

Strengths The core strengths of company is its peoples. Good customer relationship Efficient management All services under one roof Wide network of transportation Own well maintain vehicles

Weaknesses Transport constraints Insufficient Government policies

Opportunities Exploring new overseas market Decreasing cost by efficiency supply chain Enhance more customer services

Threats New potential competitors Global warming Unavailability of resources

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An Eight-Step Process for Improving Logistics Activities

Logistics activities are searching constantly for ways to improve process capabilities, shorten throughput times, improve quality, and cut costs. In many cases, the need for improvements may be obvious. In Therefore, most activities require interventions that are synchronized with ongoing operations. So, where is one to start, and what methodology should be used?

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Step 1: Define Logistics Activity Interrelationships

What materials, products, or information come into the activity? What materials, products, or information flow out of the activity? What interactions does the activity have with other activities? Defining an activitys as is and proposed to be interrelationships serves as a precursor to activity design or redesign.

Interrelationship diagrams are used to define the roles among activities.

Step 2: Conduct a Logistics Audit A logistics audit is a crucial prerequisite to task, process, or system modification The audit should answer the following questions: What resources are available, such as storage, production, and throughput capacities; buildings by size; number of personnel by type; materials-handling equipment by type; conveying systems; and budgeted capital expenditures? What constraints does the activity face, such as building layouts, storage capacities, time allotted for given production requirements, use of certain automation systems, regulatory compliance requirements, surge requirements, and capital expenditure budget? What processes does the activity use, and what are the current standards governing those processes?

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Step 3: Define Desired Operational Baselines This step builds on step 2 when a performance change is determined to be necessary. The change may be an increase in production requirements, a reduction in time to perform a chain of activities, or a reduction of defect variation within existing operations.

To complete this step, analysts must work with the activitys managers to determine the desired activity performance benchmarks. Performance standards generally reflect cumulative amounts of process or system cycle times. Any task, relationship, or resource modification to a given process usually results in the requirement to modify the performance standard for that process or system.

Step 4: Analyze Systems and Determine Options The resources and constraints identified in step 2 will directly affect this step of the analysis. Although many methods are available for determining feasible options, simulation technology is often used because of its unquestionable value in identifying or validating potential solution sets. Simulating the interrelationships of an activitys current systems can identify functional bottlenecks. These bottlenecks are the areas that will require the most focus if the intent is to increase production capability. Simulations may use queuing theory and portray the impact of materials or products that converge at system points for necessary process tasks to be performed. [Queuing theory addresses how systems with limited resources distribute those resources to elements waiting in line and how those elements waiting in line respond.]

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Step 5: Define Required Decision Criteria Military decision makers use both screening and decision criteria. Screening criteria allow decision makers to identify solutions that are impracticable or too costly. Screening criteria should be applied in step 4 to avoid wasting time designing solution sets that hinge on unreasonable interventions. For example, an intervention that requires resources that the organization cannot obtain may not be feasible. Legal, physical, cultural, or sociological constraints may also make an intervention unfeasible.

Applying decision criteria allows decision makers to categorize various interventions. For example, if the capital investment plan targets a high return on investment before an interventions implementation, analysts should associate interventions with a net initial investment. Additionally, a summary of each net initial investment computation should be documented to ensure that stakeholders understand the computation. For public sector organizations, these values often are determined by cost avoidance. To determine the cash flows associated with cost avoidance, analysts should be able to demonstrate the amount of time or money saved, the increase in production, or the decrease in errors resulting from the intervention. This allows a value to be associated with each improvement.

Step 6: Decide which Interventions to Implement

The complexity of this step is determined by the criteria defined and the documentation of interventions after completing analyses of feasible solutions. Once decision makers receive the analysis results, they must apply relevant qualitative information to make final decisions for intervention programming.

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Step 7: Identify Owners and Make Plans

For interventions to be successful they must have upper managements support and someone must own the implementation plan. When implementation strategies are personnel intensive, organizational change management considerations should be addressed before the intervention begins. The value of creating personal buy-in and a sense of urgency, establishing ownership, and generating early success should not be underestimated.

Step 8: Implement and Monitor Once implementation of the solution is underway, interventions should be monitored to validate their success. Measuring implementation progress against the implementation plan will provide the organization with valuable knowledge for future process improvements.

Change is a constant in all organizations. Conceptual models can provide a valuable roadmap to those charged with designing or reengineering an activity. The eight-step methodology described here is one such roadmap that, when followed, will produce pleasing results. An infinite number of management systems and tools can be used with this conceptual model, depending on the specific nature of the problem being addressed. Sometimes merely beginning is the most difficult stage of problem solving. As an old Chinese proverb states, A journey of a thousand miles begins with a single step.

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Process Of Freight Forwarding

Shipping Your Household Goods (HHG) & Personal Effects (PE) Overseas: When shipping your HHG & PE overseas, all you have to do is to call us to arrange with International Cargo/Export Shipping Co. for a free estimate at your home or office. One of our experienced packers will come and do an inventory of all the goods, and take measurements, in order to determine the volume of your shipment. Once the volume of your shipment is determined, we'll be able to tell you what size container you need. If you don't have enough volume for a full container, we can quote you on an LCL (less than container load) basis, in which case we will ship your cargo in one of our own consolidated containers to your destination. If you have enough cargo to fill your own container, we will place the container at your house, and come on the appointed day to

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pack, wrap and load your HHG & PE for export. If you have autos to ship, depending on the overall nature of your shipment, we can load your autos first, build a deck above the cars in order to maximize the container space for your goods, and build a bulk head barrier to separate your cars from the HHG & PE in the rest of the container, thus preventing any damage to your cars.

Minimizing Your Shipping Costs: You can minimize the cost of shipping your household and personal effects considerably, by doing as much of the packing, wrapping and loading of your own container as possible. residence. In this case, we will simply place the appropriate container for you at your However, since autos have to be loaded by experienced professionals, and

since the container doors are almost five feet off the ground, we can either load your auto(s) before we bring your container to your house, or after you load your goods; you just need to make sure to leave enough space for same.

If you would like to do an inventory of your goods yourself, simply call us at our toll-free number, or email us, and we will fax or email you our INVENTORY FORM for an easy way to list all of your goods to be shipped, and to calculate the volume you have to ship.

If you are thinking about packing and wrapping your goods yourself, all you have to do is call us, and we'll bring all the packing materials you will need to do your own wrapping and packing, and charge you only for what you use; or you can go to the nearest U-HAUL, self-storage depot, or packing supplies/box shop, and buy the packing boxes, boxing tape, rope to tie your goods down securely in the container (ships can plunge as many as 20 or 30 feet in rough seas!), bubble wrap, cardboard and shrink wrap. These materials, plus a good supply of old newspapers, are needed in order to do an adequate job of packing and wrapping your goods for export. Please note that anything you want to protect should be packed and wrapped adequately, so as to prevent damage during transport. With a dose of good common sense, and two to four healthy friends, you should be able to pack, wrap and load your household goods in a 40' container in one to two days, depending on the total volume and nature of your goods.

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Arranging for International Cargo to do all of Your Packing & Wrapping, as well as the Loading of Your Container: If for any reason you don't find it practical to do your own packing and wrapping, and/or don't have time to load your own container, you can arrange for our professional export packing crew do all of your household goods packing, wrapping, and the loading of your container for you at your residence.

What Size Container Will I Need to Ship my Goods: Although we can do everything for you, starting from the initial inventory and volume estimate, to the final delivery inside your new home overseas, you may want to understand how we calculate volume, since you can only put so much into an ocean going container.

There are three basic types of containers for household goods and personal effects (HHG & PE) - 20' standard containers, 40' standard containers, and 40' high cube containers (a foot taller than the standard). The most commonly used container for HHG & PE is the 40' high cube ocean going container. It has an approximate volume capacity of 2683 cubic feet (approx. 75 cubic meters). Its internal dimensions are 39 feet long, by 7 feet 8 inches wide, by 8 feet 9 inches high. However, for practical purposes, shippers can usually utilize only up to 85 percent of this volume, depending on the configuration of the load and the nature of the cargo. For household goods, a general rule of thumb is that shippers can utilize approximately 75 percent of the volume in a container (including one automobile), or up to 85 percent for shipments containing only household goods and personal effects.

Consequently, 85 percent of a 40' high cube container is equal to approximately 2683 x .85 = 2280 cubic feet (approx. 63 cubic meters). Likewise, a 20' container has a volume capacity of 1,148 cubic feet (232 inches x 92 inches wide x 93 inches high - 20' containers only come in this height). At 85 percent maximum utilization, shipper will be able to ship approximately 975 cubic feet (27.63 cubic meters) of cargo in a 20' container. Therefore, once you determine the volume of your goods to ship, you will know what size container you will need.
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If you find out that you don't have enough cargo to fill a container, you can ship your goods with us on an LCL basis (less than container load) in one of our consolidated containers. Either way, you need to determine the volume of your shipment. You can call us to come to your house to do an estimate for you, or you can request the HHG inventory form by calling or emailing us, and use same to make a complete inventory, with measurements, of your household goods and personal effects, and use the simple calculations shown below to determine the volume to ship; or fax us the completed inventory form and we will do the calculations for you.

Understanding Volume: Volume is simply the length multiplied by the width multiplied by the height Since 1 foot equals 12 inches, it follows that the volume of one cubic foot is 12 x 12 x 12 = 1728 cubic inches. We normally take measurements in inches, but need to know the volume in cubic feet or cubic meters. Therefore, after you've calculated the volume in inches, you can simply divide it by the number of cubic inches in one cubic foot, as shown above, and you will get the volume in cubic feet. For example: A television measuring 30 inches x 30 inches x 24 inches will have a volume of 21,600 cubic inches. To get cubic feet, you simply divide 21,600 by 1,728 and you get 12.5 cubic feet.

Now, since a meter is 39.37 inches long, it follows that a cubic meter has a volume of 39.37 inches x 39.37 inches x 39.37 inches, for a total of 61,023.378 cubic inches. So, to get the cubic feet in a cubic meter, we simply divide the cubic inches by 1,728 (as we did in previous example above), and we get the cubic feet in a cubic meter. Consequently, 61,023.378 cubic inches divided by 1728, gives us 35.314 cubic feet in a cubic meter. In Brief: To convert cubic inches to cubic feet -

Divide cubic inches by 1728

To convert cubic feet to cubic meters -

Divide cubic feet by 35.314

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Now you know how to calculate volume (multiply length x width x height). If measurements are taken in inches, you know how to get the volume in cubic feet or in cubic meters. And since you know what volume of cargo will fit in a 20' standard or a 40' high cube container, you will easily know if your inventory of goods to ship will fit in one of these containers; or, if you don't have enough to fill a container, you'll know you can send it with us in one of our consolidated containers, as LCL cargo.

Shipping Your Goods as LCL: If you don't have enough goods of your own to ship your own 20' or 40' container, you can always ship your goods as LCL cargo with International Cargo. We can pack and wrap your goods at your residence, and pick them up to bring to our export terminal, or you can pack and wrap and bring them to our export terminal yourself.

If you let us know the approximate number of pieces that you are going to have, we will make labels for you to apply, and then all you'll have to do, once you have the total count of the pieces, is simply to number the boxes with a maker as shown in this link.

If we do the packing and wrapping for you, we will provide all the appropriate labels, and mark all of your pieces accordingly.

Either way you choose, all pieces (boxes, luggage, bundles, etc.) must be properly labelled and marked when delivering personal effects or LCL cargo for shipment.

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DATA ANALYSIS AND INTERPRETATION

Analysis of Questionnaires

Q.1. Are you aware of Logistics?

Logistics

45% 55%

Yes No

Logistics is recognized by 55% People in India.

Q.2. Are you aware of Kumar Logistics?

Yes: 30% No:70%

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Venus Logistics Pvt. Ltd.

Yes No

Kumar Logistics is recognized by 30% of vendors and having a good SCM by which it enjoying a good market position.

Q.3. By asking how many vendors are satisfied with the SCM of Kumar Logistics? we got this answer.

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Response of Customer
70% 60% 50% 40% 30% 20% 10% 0% Very Satisfied Satisfied Not At all Response of Customer

Q.4. In what level company is facing the problem while using this system? 1. Resistance to change from employees 2. Resources shortage 3. Skill shortages 4. Insufficient vender support 5. Transportation 6. Other Specific The main problem faced by company is Transportation by roads as the toll nakas and traffic add the cost of transportation and also delay the shipment.

Q. Is it less expensive to buy own truck or hire the transporter for transportation? This question provides the suitable answer for the previous questions. As companies main problem is transportation. Company may adapt their own transportation facility rather than going for private transport to decrease the transportation charges.

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Chapter - IV

FINDINGS

I have found that there is cost addition due to poor roadways and other transportation constraints. Lack of information causes late delivery problems. Wastage of material in packaging.

Warehousing problem. Lack of technology. There was no ERP system. The Condition of the Vehicles is not good. They don not have more transport Vehicles.

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SUGGESTIONS
1. To decrease the cost and increase the profit, this unit may control or reduce the administrative overheads and other controllable expenses like packaging, transportation etc.

2. The industry may try to adopt a marketing orientation to find out new vendors like other companies which produce only for export.

3. Maintaining wastage and maximizing the utilization of available resources and delivering order in time.

4. In order to improve the performance in total it should introduce Management Information system.

5. Company may adapt their own transportation facility rather than going for private transport to decrease the transportation charges.

6. Company need to keep regular maintains of their vehicle they have.

7. Company should introduced ERP system and this will help them to reduce their SCM cost.

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CONCLUSION

Supply chain encompasses the companies and business activities needed to design, package and delivery of service. Business depends on their supply chain to provide them with what they need to survive and thrive. A supply chain consists of all stages involved, directly or indirectly in fulfilment of a customer request. The supply chain not only includes manufacturer and supplier but also transport, warehouse, retailer and customer themselves. My aim is to investigate the current situation and future prospect of supply chain management in Kumar Logistic group. In this summer internship program my aim is to identify major challenges and developments of SCM and its relate issue in venues logistics and understand the impact of policy making on SCM and implementation. I studied that Kumar logistics has a good SCM but with some problems like lack of technology, transportation constraints, warehousing problems. As my observation I

suggest to implement MIS to have quick and uninterrupted work to deal with transportation constraint and cost.

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BIBLIOGRAPHY

BOOKS

Kothari, C.R.: Research methodology, 3rd edition, 1997, Vikas Publishing House Pvt. Ltd, New Delhi,

K. Ashwathappa and K. Shreedhar Bhatt, Supply Chain Management, First Edition, Himalaya Publication.

WEBSITE http://en.wikipedia.org Through Other companies Website www.google.com NEWSPAPER

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