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Summer training REPORT

Process Flow in Transportation At Hindalco Industries Ltd. Renukoot

Submitted in partial fulfillment of the requirement for the award of Post Graduate Diploma in Management (PGDM) 2012-2014

SESSION:-2012-14
SUBMITTED TO: Mr. Amit Kishor Sinha Senior lecturer SMS Varanasi
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SUBMITTED BY: Prashant Kumar Singh PG/18/051

DECLARATION
I hereby declare that report entitledProcess Flow in Transportationsubmitted by me in partial fulfillment of the requirements for the POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) is my original work and that it has not previously formed the basis for the award of any other Degree, Diploma, Fellowship or any other titles.

NAME: PRASHANT KUMAR SINGH PG/18/051

Place: Date:

ACKNOWLEDGEMENT

At the outset, I take the privilege to convey my sincere gratitude to those whose co-operation, suggestions and support helped me to accomplish the project work successfully. I would like to express my deepest sense of gratitude to my summer training mentor and faculty guide respected MR. Amit kishor sinha (Senior Lecturer) for his valuable guidance, inspiration and encouragement. Also I would also like to express my special thanks to our Program co-ordinator DR. meenakshi A. Singh for his valuable guidance &all the faculty members for their constant help for the completion of the project.Their ever available encouragement and enlightening guidance has been of immense help towards the successful completion of the project.

Table of content Operation in hindalco....6 Limitation of study7 General information about study..8 ADITYA BIRLA GROUP Introduction 11 Vision & mission.12 Grouping of company 13 HINDALCO INDUSTRIES LIMITED Hindalco overview..17 Recent milestone..21 Hindalco products23 The market leader.28 LOGISTICS Definition of logistics30 Logistics in hindalco..33 Co-ordination.34 Warehouse36 TRANSPORTATION Transportation in hindalco.45 SOP of transportation..51 Outbound logistics ..59 Transport section process.62 Calculation of freight charges..66 SWOT ANALYSIS ..69 FINDINGS 71 CONCLUSION..72 SUGGESTIONS ..73 ABBREVIATIONS USED74 BIBLIOGRAPHY ..75

Introduction
Operation in hindalco Limitations of study General information about study

OPERATION IN HINDALCO Students are expected to work with manufacture logistic or a merchant logistics and work with the company staff in performing several activities forming port of the order processing.initially they would prepare documents and subsequently they may be asked to interact with outside agencies under the guidance of existing staff .in the later stage , they may be asked to do the activities by themselves under the supervision of the existing staff. During this entire period they are supposed to the following aspects that are important for the organization: 1. Delivering customer satisfaction in terms of goods, services and timely information. 2. Ensuring the warehousing packaging, grouping, allocation & dispatches 3. Relationships with agencies are strengthened and interactions are smooth 4. Truck hiring process and loading of goods and invoice making. 5. Relationship between different transport agency& process flow of delivery. 6. Solving the transit damage and complains in the case of physical damage and wrong delivery. 7. Understanding the full truck loading process to reduce the transport freight.. 8. And releasing process of get pass for full truck and consignment tracking

LIMITATIONS OF STUDY

The duration of practical training was just of eight weeks .It was not sufficient. Due to heavy engagement of the top management people and other personnel, much other information could not be collected within the limited span of time. To maintain secrecy, the company people do not provide various types of information, such as actual Position of running trucks to various customers with consignment Transportation name, truck No. etc., Their recommendations are the outcome of an analysis made individually. Another analysis may arrive at certain other recommendation after using same data.

So, that it is advisable for the company to examine the various recommendations. Before going ahead with any of their implementations.

Type Industry Founded Founder

private conglomerate 1958 Ghanshyam das Birla

Headquarters Mumbai India Area served Key people Products worldwide Kumar mangalam Birla metal Cement Textiles Chemicals Agribusiness Carbon black Mining Insurance Telecommunications Financial service IT services /ITES
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Retail Income trading solutions us$35 billion

Employees Subsidiaries

133,000 several

o ADITYEA BIRLA GROUP


INTRODUCTION

Vision & mission


GROUP OF COMPANY

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INTRODUCTION The Aditya Birla Group is an Indian Multinational conglomerate corporation headquarters in Mumbai, India. It operates in over 33 countries with more than 133,000 employees worldwide. The group has diversified business interests and is dominant player in all the sectors in which it operates such as viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services, telecom, BPO and IT services. It established in 1958, we commissioned our aluminium facility at Renukoot in Indal, Birla copper and the nifty and Mt. Gordon copper mines in Australia strengthened our position in value-added alumina, aluminium and copper products. Our units are ISO 9001; 2000, ISO 14001; 2004and OHSAS 18001 certified.

The Aditya Birla group is a US $35 Billion conglomerate and grew up $65 Billion in five year which gets 60% of its revenues from outside India. The Aditya Birla group has been adjudged the best employer in the India and among the top 20 in Asia by the Hewitt economy times and wall street journal study 2007.and in 2011 it ranked 4th in world and 1st in Asia pacific in Top companies for leaders study (BY AON HEWITT, THE RBL GROUP AND FORTUENE). The origins of the group lie in the conglomerate once held by one Indias foremost industrialists Mr. Ghanshyam das Birla. GLOBALLY THE ADITYA BIRLA GROUP IS A metal power house, among the worlds most cost-efficient aluminium and copper producers. Hindalco Novelis is the largest aluminium in Asia, with the largest single location copper smelter. Number 1 in viscose staple fibre. The fourth largest producer of insulators. The tenth largest cement produces globally, and the largest in India. Largest premium branded Apparel Company. The second largest producer of viscose filament yarn. The second largest in the chlor alkali sectors. Among the top five cellular operators. Among the top five asset management and private sector life insurance companies. The worlds largest aluminium rolling company. Biggest producer of primary aluminium in Asia. The No.1 producer of carbon black in the world. Among the best energy efficient fertilizer plants.
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Aditya Birla Group

POLICY HIGHLIGHTS Our vision; To become a premium conglomerate with clear business focus at each corporate level Our mission To deliver value for our customer, shareholders, employees and society at large Our value Integrity Honesty in every action Commitment On foundation of integrity, doing whatever it takes to deliver, as promised Passion Missionary zeal arising out of an emotion engagement with work Seamlessness Thinking and working together across functional silos, hierarchy level, business and geographies. Speed Responding to stakeholders with a sense of urgency.

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Group philosophy REST ON FOUR PILLARS Customaries People size Strategize Institutional

Group companies Grasim industries Ltd. Hindalco industries Ltd. Aditya Birla nuvoLtd. Shree dig Vijay cement co. Ltd. Ultra tech cement.

Indian companies

PSI Data systems Trans work Easel mining & industries Ltd. Shree dig Vijay cement Ltd. Idea cellular Ltd. Birla NGK insulators Bihar caustic and chemicals Ltd.

International companies Thailand: Indo Thai synthetics Century textiles Thai Acrylic Fibre Thai Carbon black

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Philippines: Indo Phil textile mills Indo Phil cotton mills Indo Phil acrylic manufacturing corporation

Indonesia: Egypt: Alexandria carbon black company S.A.E Alexandria fibre company PT Indo Bharat rayon PT Elegant textile industry PT sunrise Bumi textiles PT Indo Liberty textiles

China: Canada: AV cell Inc. AV Nackawic Inc. Liaoning Birla carbon

Australia: Aditya Birla Minerals Ltd. Laos Birla Laos pulp and paper plantation company Ltd.

Joint ventures Birla sun life insurance Birla sun life asset management company Ltd. Birla sun life distribution company Ltd.
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Sectors: o o o o o o o o o o o o o o Aluminium Copper Cement Carbon black Textiles Fertilizers Chemical Insulator Gas Software BPO Telecom Retail Finance and insurance

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o HINDALCO INDUSTRIES LIMITED Hindalco overview Recent milestone Quality policy Hindalco products The market leader

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HINDALCO OVERVIEW Hindalco industries limited, the metals flagship company of the Aditya Birla group, are in industry leader in aluminium and copper .A metals powerhouse with a consolidated turnover in excess of us $15.85 billion, hindalco is the world`s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia .its copper smelter is the world`s largest customer smelter at a single location. Established in 1958, hindalco commissioned its aluminium facility at Renukoot In eastern up In 1962 . later acquisition and mergers, with Indal Birla copper and nifty and mt Gordon copper mines in Australia, strengthened the company`s position in value-added aluminium and copper products with vertical integration through access to captive copper concentration. In 2007, the acquisition of Novelis Inc. a world leader in aluminium rolling and can recycling marked a significant milestone in the history of the aluminium industry in India. With Novelis under its fold hindalco rank among the global top five aluminium majors as an integrated producer with low cost alumina and aluminium facilities combined with high end rolling capabilities and a global footprint in 12 countries outside India. Its combined turnover of us $ 14 billion, places it in the fortune 500 league. Hindalco in India enjoys a leadership position in aluminium and copper. The company`s aluminium units across the country encompass the entire gamut of operation from bauxite mining, alumina refining , aluminium smelter to downstream rolling ,extrusions, foils and alloy wheels, along with captive power plant and coal mines. The Aditya Birla copper unit producer copper cathodes, continuous cast copper rods along other by-products including gold, silver and fertilizers. All of Hindalcos units are ISO 14001:2004 and OHSAS 18001 certified. The Renukoot and Talofa unit shave gone a step further with an integrated management system (IMS), combining ISO 9001 ISO 14001 and OHSAS 18001 into and business excellence model.

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Hindalco, At Renukoot, Houses A Fully Integrated Plant ,comprising Of Three Main Plant Alumina plant It was commissioned with an initial capacity of40,000 , MTPA which has now increased to 6,85,000 MTRA. The plant has been expended in phases using new technology from time to time for energy efficiency and capacity enhancement. it employees the basic Bayers process and the major raw material for the plant are bauxite ,stream ,caustic soda and furnace oil. Aluminium Smelter It has 11 pot line with2067 pots installed with annual production capacity of 3, 45,000MT. the smelter employs the hall heroult electrolysis process for the extraction of aluminium from alumina .basic raw material for smelter is alumina ,power, anodes and aluminium florid. Fabrication plant (value Added product): The fabrication plant at Renukoot comprises of 4 main section re-melt shop cast house, rolling mills, extrusion, and conform, which produce wire rod, sheet, coils, and extruded products. Hindalco, an ISO 14001, ISO 9002 and OHSAS18001 certified company. Hindalco Power Division: It situated at Renusagar about 35 kms. From Renukoot .in September 1959, an industrial license was granted by the government for setting up integrated aluminium plant at Renukoot; with the initial installed capacity of 20,000 MT the construction work was completed within 18 month, a record for major job of this kind. The dream of the great visionary Mr. G.D. Birla to locate an aluminium plant near Rihand Dame Power house came true.

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Aluminium Hindalco's major products include standard and specialty grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil. The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products; namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a 742 MW captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations. A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. As a step towards expanding the market for value-added products and services, we have Launched various brands in recent years ever last roofing sheets, Fresh wrap kitchen foil and Freshpakk semi-rigid containers.

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Copper
Birla Copper, Hindalcos copper unit, is located at Dahej in Gujarat, India. The unit has the unique distinction of being the largest single-location copper smelter in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 TPA. Birla Copper also produces precious metals, fertilizers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation. Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).

Mines
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an underground mine, heap leach pads and a solvent extraction and electro winning (SXEW) processing plant, which produces copper cathode. The Mt. Gordon copper operation consists of an underground mine and a copper concentrate plant. Until recently, the operation produced copper cathode through the ferric leach process. In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. Both Nifty and Mt. Gordon have a long-term life of mine offtake agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej.

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Some Recent Milestone


The Aditya Birla group is ranked no.4 in Asia pacific in top c companies for L leader study (2011), conducted by Aon Hewitt, fortune magazine and RBL. Hindalco bagged the prestigious CII EXIM bank business excellence award2011for its strong commitment to excel on the journey towards business excellence. Silver certificate of Indian manufacturing excellence award -2010 by economic times and frost &Sullivan National energy conservation award (second prize) 2010, in the metals sector, presented by ministry of energy .Government of India. Best exporter award for 2011 by the container corporation of India for contributing to India`s economic progress through significant volume of exports. The peacock award for corporate social responsibility for the year 2010 Greentech environment excellence gold award 2010 in the metals sector for its efforts towards environment management, by Greentech foundation, New Delhi. Greentech gold safety award 2010 for occupational health and safety management in the mining & metals sector by Greentech foundation, New Delhi NIPM gold award for best HR practices for the year 2010 by national institute of personal management (NIPM) . Birla copper, a division of Hindalco, won the IMC Ramakrishna Bajaj quality award commendation certificate.

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Quality polices We, atHindalco, shall aim to achieve and sustain excellence in all our activities. We are committed to total customer satisfaction by providing products and services, which meet or exceed the customer`s expectations. Modernization of the manufacturing facilities, stress on technological innovation and training of employees at all levels shall be a continuous process in Hindalco. A motivated workforce with a since of pride in the organization shall lead us towards total quality. Why to GO Global There are various reasons for going global. Some of the reasons are as follow Increases sales and profits (especially if fixed costs are tied to domestic operation) bigger chunk of growth gain. Earns a greater return form a set of core competencies. Generation economies of scale in production. Enhances local competitiveness and paves the way to larger, more lucrative customers. Creative jobs, productivity growth and wealth. Enlarges the pie of potential investors. Insulates seasonal domestic (local) sales by finding new foreign market and selling excess production capacity. Cuts costs through global outsourcing Reduces dependence on existing markets. Capitalizes on tax advantages.

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Hindalco products Now this time hindalco producer per day approx.1100/1120 tonne, two types of products :

1. Primary aluminium products 2. Semi-fabricated product 1. Primary aluminium products.


Hindalco is a major player in the primary aluminium market. Our product range includes:

Ingots Hindalco produces high-purity ingots through smelting. Alloy ingots of various grades are also produced and mainly used for the production of castings in the auto industry and in electrical applications. Both these products are re-melted and further processed into a large number of products for various downstream applications. Hindalco metal is accepted under the high-grade aluminium contract on the London Metal Exchange (LME) as a registered brand.

Wire rods Hindalco manufactures wire rods in a continuous casting and rolling process. Electrical conductor (EC) wire rods are used for the production of cables and ACSR and AAC conductors. Alloy wire rods are used to produce AAAC conductors.

Billets Hindalcos aluminium billets are produced by a state-of-the-art Wag staff casting process using Airship technology. These are top-quality billets with a smooth finish. They are used mainly to produce extrusions and forgings.

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2. Semi-fabricated products:
Hindalco produces 900 different rolled product items of which 40 are standard; these are basically meet to order. These are two types 1-rolled products 2-Extrusions

Rolled products

Hindalco has become the world's largest aluminium rolling company with its acquisition of Novelis, the global leader in value-added high-end aluminium flat rolled products and aluminium can recycling. The combined volume of sales of flat rolled products in the world market is about 3 million tonnes, And the market share is more than 20 per cent. Superior quality, delivery and customized service Capabilities have helped us in growing market share globally. We are India's largest manufacturer of The entire range of flat rolled products. Our aluminium sheet is produced from our own cast slabs or
Continuous cast coils, rolled down to customized thickness, gauge and tolerances. In India we enjoy a dominant market share. Our rolled products are widely used in various segments such as packaging, transportation,

building and construction, electrical, defense and general engineering application Our commitment to
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quality and service, along with extensive infrastructure, has made us a prime source for best-selling Brands. Continuous improvements in manufacturing processes, practices and systems ensure that Customers' needs and expectations are fully met. We ensure efficiency and product quality by using state-of-the-art equipment and a strong research and development setup, supported by dedicated and Motivated employees and the Oracle ERP system. Wag staff Air Slip slab Casting technology is used to guarantee consistent quality and surface finish of stock feed, which in Turn ensures quality finished products. Hindalco's brand, Ever last Aluminium Roofing Sheets offers an ideal solution for all roofing and cladding needs that translate into durable, faster and economical Constructions. We also offer colour-coated and tiled roofing profiles.

MORE ROLLED PRODUCTS: AL clad sheets/coils Cable wrap stock Closure stock Cold rolled sheets Flooring sheets/tread plates Lamp cap stock Building sheets Circles Cold roll coils Fin stock Foil stock Litho stock Pattern sheets Printed circuit boards (PCB) entry sheets Plates Spiral fin stock
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Extrusion

Extrusion is defined as a process in which a metal block is reduced in cross section by forcing it to flow through a die, in order to give it a desired shape. Extrusions are performed both hot and cold. However, most commercial extrusions are performed hot. Extrusion processes maybe direct or indirect. In Direct extrusion, which is the conventional process, the billet moves relative to the container wall, while in indirect extrusions the die moves. The Extrusion process is the most economical and versatile method of producing aluminium sections of almost any desired shape and form.
A leading player in the extrusions industry in India, Hindalco offers a wide range of alloys, including hard alloys and some special alloys for the defense and space sectors. Our extrusions capacity stands at 31,000 TPA. We have two extrusion plants in India, one in Renukoot, Uttar Pradesh, and the other in Alupuram, Kerala. Both plants have well-established manufacturing processes and QA systems honed over five decades of experience. Our extrusions are manufactured from high-quality billets made out of virgin in-house metal and offer the widest range of shapes and alloys. Hindalco Extrusions is a leading brand for a wide spectrum of industries, including architectural, electrical, industrial, transport, defense and consumer durables industries.

Quality accreditations ISO 9001:2000 Quality Management System ISO 14001 Environment Management System

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OHSAS 18001:1999 Occupational Health and Safety Assessment Series Hindalco extrusions offer an enormous range of shapes, wide range of alloys for decorative, structural and function application. the present die catalogue included over one thousand die for various sections and we are fury equipped to design and make new die as per exclusive requirement .some of the common shapes are as follows: o o o o o FOIL o o o o Cable rape stock Light gauge foil Bare & coated fine stock Collapsible insulation ducts ROD ,BAR-Flat ,square ,Hexagonal Structural shapes angles, channels, tee, l-beeps, H sections etc. Tubes-round ,oval, square ,rectangular, triangular Moudings Solid and hollow shapes

ALLOY WHEELS o 12 to 18 inch diameters.

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THE MARKET LEADER Hindalco is the leading domestic player in two metals business segments aluminium and copper. the aluminium division`s product range includes alumna chemicals, primary aluminium ingots, billets, and wire rods, product extrusions, foil and alloy wheels. The company has a significant market share in all the segments in which it operates.it enjoys a domestic market share of 42 per cent in primary aluminium, 63 per cent in rolled products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels. As a step towards expanding the market for value-added products and services, Hindalco has launched several brands in recent year, which include aura for alloy wheels, fresh Rapp for kitchen foil and ever last for roofing sheets .our exclusive showroom, the aluminium gallery, seeks to promote Hindalco products to its customers. it is a platform for the company to showcase quality products to a quality audience in an appropriate ambience. The exhibits include products like windows, doors, furniture, ladder, roofing sheets and ceiling and cladding panels. Hindalco products are well received not only in the domestic market, but also in the international market. the company`s metal is accepted for delivery under the high-grade aluminium contract on the London metal exchange (LME).the company exports about 17 per cent of its total sales volume of aluminium . The company`s alumna chemical business is a leader in manufacturing and marketing of specialty alumna and alumna hydrate products in the country .it has a market share of 90 per cent in the country . These specialty products find wide usage in diversified industries including water treatment chemicals. In factory, ceramics, curiosity, glass, fillers and plastics, conveyor belts and cable, among others. The company also exports these alumna chemicals to over 30 countries covering North America, Western Europe and the Asian region. Birla copper, Hindalco`s copper division at Dahej in Gujarat enjoys a leadership position in India, having built over 40 per cent of the domestic market share within three years of its commissioning .it has also made successful forays into the export markets of the middle east, southeast Asia, china, Korea and Taiwan .the copper plant produces world-class copper cathodes, continuous cast copper rods and precious metals. Sulphuric acid, phosphoric acid, Dl-ammonium phosphate, other phosphate fertilizers and phosphor-gypsum are also produced at this plant.

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o Logistics

Definition of logistics Importance of logistics Logistics in hindalco Co-ordination Warehousing

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What is Logistics Logistics is the management of the flow of resources between the point of origin and the point of consumption in order to meet some requirements, for example, of customers or corporations. The resources managed in logistics include physical items, such as food, materials, equipment, liquids, as well as abstract items, such as time, information, particles, and energy. The logistics of physical items usually involves the integration of information flow. Material handling, production, packaging, inventory, transportation, warehousing and often security. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resource is a common motivation. Logistics (Business Definition)
Logistics is defined as a business planning, framework for the management of material, service information and capital flows. It includes the increasingly complex information, communication and control systems required in today`s business environment.

LOGISTICS (According to Webster`s dictionary) Defines logistics as the branch of military science relating to procuring maintaining and transporting material personnel and facilities. Logistics functions (Classical) planning, procurement, transportation, supply, and maintenance-(according to United States Deportment of defense DOD) Logistics processes Conservation (according to united states department of defense DOD) We understand the logistics process by understanding chain management by this figure In the supply chain flow there are three sub parts of logistics. 1. Production logistics 2. Logistics management 3. Warehouse management

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1-Production logistics The term production logistics describes logistic processes within an industry. Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through value-adding processes and to eliminate nonvalueadding processes. Production logistics can operate in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency. Production logistics becomes more important with decreasing batch sizes. In many industries (e.g., mobile phones), the short-term goal is a batch size of one, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries. 2-Logistics management Logistics is that part of the supply chain that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer and legal requirements. A professional working in the field of logistics management is called a logistician. Materials management Channel management Distribution (or physical distribution) Supply-chain management

The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom in 1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions for the logistics and transport sectors that offers professional qualifications or degrees in logistics management.

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3-Warehouse management systems: A warehouse management system ,or WMS ,is a key part of the supply chain and primarily aims to control the movement and the movement and storage of materials within a warehouse and process the associated transactions, including shipping , receiving ,put away and picking .the system also direct and optimize stock put away based on real-time information about the status of bin . Importance of logistics Logistic is the one importance function in business today .no marketing , manufacturing or project execution can succeed without logistics support .for companies , 10 per cent to 35 per cent of gross sales are logistics cost , depending on business ,geography and weight /value ratio . Logistics is comparatively a new term ,but not the operation .logistics has existed since the beginning of civilization .raw material and finished products had always to be moved ,though on a small scale .things began changing with the advance in transportation . population began moving from rural to urban area and to business centres.no longer did people live near production centers. The geographical distance between the production point increased .and logistics gained importance. Another factory has come into play recently .since the early 1990 s ,the business scene has changed .the globalization, the free market and the competition has required that the customer gets the right material ,at the right time ,at the right point and in the right condition at the lowest cost .

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Logistics in Hindalco
Logistics is divided into five sub sectors : a) b) c) d) e) Co-ordination Warehousing Transportation Transit damage & complain Bill processing

Figure of logistics structure of Hindalco industries .Ltd

Logistics
.
Co-ordination

Warehouse

Transport

Transit demand and complain

Bill processing

Primary WH-1(wire rods) Rolled WH-2 (rolled) WH3(extrusion) WH-4 (ingots)

Extrusion

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Logistics process Logistics process after the sale order which is given by the consumer & booked by the coordination personnel as per daily basis from regional office we see the logistics process of Hindalco with these heading s: Co-ordination Co-ordination is the process of connecting the different departmental work. at the beginning of the month head office of Hindalco industries decide the monthly target of cells of metal on the based on three products primary products ,rolled &ext

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Market co-ordination process

CMO (CHIEF MARKETING OFFICER)

PRIMARY EXTRUSIONS ROLLED

VICE PRESIDENT

East

WEST

NORTH

SOUTH

REGIONAL MANAGER (RM)

FIGURE OF MARKETING HEAD OFFICE (MUMBAI)

T.M T.M

T.M T.M

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Warehouse
A warehouse is a commercial building for storage of goods .warehouses are used by manufacturers ,importer ,exporter, whole seller, transport businesses, customers , etc. they use usually large plain buildings in industrial areas of cities and town. They usually have loading finished goods or load and unload goods from trucks. Sometimes warehouse load and unload goods directly , from railway ,airport ,or seaports. They often have cranes and forklift for moving goods ,which usually placed on ISO standard pallets loaded into pallet racks Warehouses are used for two stages: Inbound activities: Warehouses used for inbound activities are totally eight in number

Warehouse

Products stored in it

RP 1 RP 2 RP 3

Alumina related products Cathode ,C.P coke Hard pitch All the products related with the process of transformation from alumina to aluminium e.g. floride Coal Coal Coal All types of other metal Fuel oil

RP 4 RP 5 RP 6 RP 7 RP 8

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ii- work in progress & outbound activities


Warehouse used for outbound & work in progress activities are totally five in number Product No .of warehouse 1 Area (square meter) 4500sq .mt Other Specification

Rolled product

Used for material handling in warehouse are 3 over head cranes (2-10mt cap.71-5mt cap.) Used for material handling in the warehouse are overhead crane (2-capcity of 10mt ) Used for material handling in the warehouse are hydra 7 over crane

Extrusion

1920sq.mt

Ingot

2640 sq.mt 1800 sq.mt

Wire rod

648 sq.mt

Used for material handling in the warehouse are forklift (5 mt& 3 mt)

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OUT BOND PROCESS OF WAREHOUSE

Made to stock item

Made to order item

Customer request for order

Manual

Customer request for order

Order entry

Order entry

Validation of order Order booking

Order booking

Make demand visible to plant Release order to plant

Packing

Allocation

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o TRANSPORTATION
Meaning Interrelationships between transportation &logistics Requirement of SMS& E-mail tech. in transportation Transportation in Hindalco SOP of transportation SOP of outbound logistics freight bill processing

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Transportation The operation of transportation determines the efficiency of moving products. The progress in techniques and management principles improves the moving load delivery speed, services quality, operation costs, the usage of facilities and energy saving. Transportation occupies crucial part in the management of logistics . Reviewing the current condition a strong system needs a clear frame of logistics, and techniques to link the producing procedures. The research was undertaken to assist logistics managers , and transportation planner to define and comprehend the basic views of logistics and its various applications and the relationship between logistics and transportation . Introduction:Due to the trend of nationalization and globalization in recent decade ,the importance of logistics management has been growing in various area .for industries 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 key element in a logistics chain is transportation system , which joints the separated activities .transportation system influence the performance of logistics system hugely ,transporting is required in the whole production procedures ,from manufacturing to delivery to the final consumers and returns . only a good coordination between each component would bring the benefits to a maximum.

INTERRELATIONSHIPS BETWEEN TRANSPORTATION AND LOGISTICS Without well developed transportation systems, logistics could not bring its advantages into full play. Besides, a good transport system in logistics activities could provide better logistics efficiency, reduce operation cost, and promote service quality. The improvement of transportation systems needs the effort from both public and private sectors. A well-operated logistics system could increase both the competitiveness of the government and enterprises.

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Transport Costs and Goods Characters in Logistics Transport system is the most important economic activity among the components of business logistics systems. Around one third to two thirds of the expenses of enterprises logistics costs are spent on transportation. According to the investigation of National Council of Physical Distribution Management (NCPDM) in 1982 (Chang, 1988), the cost of transportation, on average, accounted for 6.5% of market revenue and 44% of logistics costs. BTRE (2001) indicated that Australian gross value added of the transport and storage sectorwas $34,496 million in 1999-2000, or 5.6% of GDP. Figure 3 shows the components of logistics costs based on the estimation from Air Transportation Association (Chang, 1988). This analysis shows transportation is the highest cost, which occupies 29.4% of logistics costs, and then in order by inventory, warehousing cost, packing cost, management cost, movement cost and ordering cost. The ratio is almost one-third of the total logistics costs. The transportation cost here includes the means of transportation, corridors, containers, pallets,terminals, labors, and time. This figure signifies not only the cost structure of logistics systems but also the importance order in improvement processing. It occupies an important ratio in logistics activities. The improvement of the item of higher operation costs can get better effects. Hence, logistics managers must comprehend transport system operation roughly. Transport system makes goods and products movable and provides timely and regional efficacy to promote value-added under the least cost principle. Transport affects the results of logistics activities and, of course, it influences production and sale. In the logistics system, transportation cost could be regarded as a restriction of the objective market. Value of transportation varies with different industries. For those products with small volume, low weight and high value, transportation cost simply occupies a very small part of sale and is less regarded; for those big, heavy and low-valued products, transportation occupies a very big part of sale and affects profits more, and therefore it is more regarded.

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The Effects of Transportation on Logistics Activities Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods in the name of the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost maximize service to the customers that constitutes the concept of business logistics. The system, once put in place, must be effectively managed. Traditionally these steps involved separate companies for production, storage, transportation, wholesaling, and retail sale, however basically, production/manufacturing plants, warehousing services, merchandising establishments are all about doing transportation. Production or manufacturing plants required the assembly of materials, components, and supplies, with or without storage, processing and material handling within the plant and plant inventory. Warehousing services between plants and marketing outlets involved separate transport. Merchandising establishments completed the chain with delivery to the consumers. The manufacturers limited themselves to the production of goods, leaving marketing and distribution to other firms. Warehousing and storage can be considered in terms of services for the production process and for product distribution. There have been major changes in the number and location of facilities with the closure of many single-user warehouses and an expansion of consolidation facilities and distribution centers. These developments reflect factors such as better transport services and pressures to improve logistics performance.

The Role of Transportation in Service Quality The role that transportation plays in logistics system is more complex than carrying goods for the proprietors. Its complexity can take effect only through highly quality management. By means of well-handled transport system, goods could be sent to the right place at right time in order to satisfy customers demands. It brings efficacy, and also it builds a bridge between producers and consumers. Therefore, transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system. In addition, a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness.

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Requirement of SMS& E-mail technology in transportation SMS & E-mail based tracking and business application for customers along with value added services to the customers and enhanced management information system for own use using the prevalent SMS &e-mail technology .

The services can be transport industries to the customers will be : 1. 2. 3. 4. 5. 6. 7. Transit time calculation Rate and freight calculation Costing Branch location Pick up request SMS tracking of consignment Booking and delivery notification to the consignee or consigner

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NEED The process of delivering goods and services is changing as corporations restructure distribution channels and re-engineer inefficient practices .to remain competitive ,it is essential to reduce expenditure and build up capacities of just in just delivery management Efficient operations require accurate , timely decision- making .knowledge of vehicles, pickup schedules and delivery schedules at any given point of time , leverages assets for optimum development and cost savings

Benefit of Transportation with IT S technology


1. Booking order processing 2. Transit time calculation 3. Rate and freight calculation 4. Costing 5. Branch location 6. Pick up request 7. Billing information 8. Dispatch management 9. Vehicle location.(time delay calculation ) 10. SMS tracking of consignment 11. Booking and delivery notification consigner 12. Micro update of exiting MIS 13. Customer relation management 14. Data mining 15. Customer complaints 16. Business intelligence

to

the

consignee

or

44

Transportation in Hindalco
Transportation is divided into two part 1) Inbound transportation 2) Outbound transportation A. Inbound transportation of raw material (procurement ) In Hindalco at renukoot plant inbound raw material used to bring through rail and road mode . the ratio for both the transport mode is :Rail-70% Road -30%

There are following reason for using rail more than road transport. As per transport freight economics principle the rail is cheaper mode compared to road. The geographical location and availability of the railway siding infrastructure at Renukoot. The volume of incoming material in quantity at once is as much so a full rake load can be created The nature of material suitable for the railway carriage. It helps in fast loading and unloading facility with of loader crane and Tripler. So to know the rail road transportation firstly, we should know their respective process. Which give us the initial differences between both the modes? As they have different parameter in there process for inbound transportation. B .outbound transportation for finished goods(delivery) In Hindalco Renukoot finished goods delivered to customer by road transport .30% of delivery mode used by road transport by Hindalco because rail route not available everywhere in country so we used road transport.

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Region behind road transport:Weather road transport costly than rail transport but most of time our buyer only affords only road transport because rail transport needs lots of formalities Consumer demand for aluminium not at regular basis so we used road transport as required. Our consumer not so big buyer to afford rail allotment charge . In case of export our finished goods reached at the port as possible as nearest to doc yard. By road transport we are secured to about finished goods till delivery to consumer. We call road transport as we required for delivery of finished goods We track down our consignment on running road by deferent security system as swipe card system & regular touch with transporter & driver . In Hindalco Renukoot we see transport structure in finished goods delivery system in this figure till warehouse loading to gate pass generation

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Annual dispatch of financial year(10-11) In financial year 2011-12 & 2012-13 Hindalco dispatch total 34565& 32182 tonne finished

Products

Fy )mt./month 2430 7584 8134 16417 34565

-11-12(actual

Fy-12-13(actual)mt./month

Extrusion Rolled Wire rod Ingots total

2116 7674 7782 14610 32182

metals .the table of dispatch as-

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Recently dispatch of finished metal in financial year (12-13) for domestically in India by hindalco asMonth April-12 May-12 June-12 July-12 August-12 September -12 October -12 November -12 December-12 January-13 February -13 March-13 Tonnes 26016 29606 27171 29152 28150 27152 29710 25840 29841 27800 26011 30980

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Getting the monthly order

Monthly target are given by the SBU head Order are booked by the regional and conveyed to the coordination either on phone or by mails based on the financial arrengements made by the customer

Production planning

Production planning done on the basis of primary alluminium product(meet to stock ) & semi febricated (meet to order ) The MIS report are prepared related to targets, orders, despatches , stock ,on a daily basis and the other report as per the requirements .

Warehouse receiving

After receiving the finished goods meet to stock & meet to orderin warehouse they storein the warehouse area Inventory monitoring done in warehouse record with there specification ,old stock& new stock

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Grouping
Product entered in FG warehouse record with Packing according to consumer demand. Grouping based on the destination, product type & cm requirement

Truck Hiring Generation


Truck hiring offer sent to transport as per Quota by SMS & E-mail truck requisitioned from transporter as per requirement& hiring slip Generated

Loading slip
Loading slip generated at warehousing dept. based on the hiring slip. Loading at warehouse as per instruction The loading slip.

Gate Pass Generation


Weighment of truck before loading of goods &after loading of goods. the making of weight slip of gross weight & Net weight gate pass generated

Invoice Generation
Physical copy of gate pass & LR sent to the involve section on challan paper of goods & LR invoice paper is generated

Truck out
On copy of gate pass given to the driver for lorry exit from factory gate Swipe card (etrans) along with invoice to driver for know the position of goods

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Standard operating process (Sop) of transportation in Hindalco After receiving finished goods to warehouse from production house warehouse deportment demanding truck to transportation deportment as per requirement of consumer .truck hiring process we see in following: 1. Grouping(product Grouping ): Grouping is mainly based on our two products I. Primary metal i. Ingot ii. Sow ingot iii. Master alloy II. Semi fabricated metal i. Rolled ii. Extrusion When we doing grouping of finished goods we do following thingsFind out demand of goods from consumer side whether it is primary product or semi-fabricated product .because some time consumer demanding mix product. ii. Demand of finished goods from which zone east ,west, north, or south zone .by zone ,we line up our truck demand for particular zone for FTL iii. Then we determine the demand type of consumer whether it demanding ingot (tons), wire rode (meter, tons), rolled & extrusion in size, diameter, thickness, cut length, temper. All description provided by the consumer about the product. We doing grouping on Hindalco oracle system .which is allocated the grouping system as per our consumer demand & after that all process at oracle system. 2. Allocation (material allocation ) Finished goods allocation on the basis of A. Semi fabricated : Semi product is allocated by product co-ordinations. After allocation sales order is either releases or hold by product coordinators based on availability of statutory document, payment. B. Primary : Primary metal are mostly made to stock items
51

i.

Primary metal are allocated by warehouse based on schedule given by primary metal product coordinators. And i. Product ii. Quantity of production iii. Size, diameter & hardness iv. Weight (v.)Packing type

52

METERIAL ALLOCATION

MTO

Prod. Receiving

RFG update

MTS

Prod. Receiving

Allocation

Truck loading

Truck inside factory

Hiring slip generated

Delivery grouping

Ship conform

Truck outside
factory

Based on the zone wise transporter quota

Shippable quantity

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3. Hiring slip pending : Truck hiring slip pending till transport call for the truck hiring as per quote system & according to material to be transported & truck capacity.

Type truck

of

Weight

Loading capacity

6 7.5 9 tonne wheeler tonne 10 10 tonne 15 tonne wheeler 12 12 tonne 15 tonne wheeler 14 13 21 tonne wheeler tonne 18 14 tonne 27 tonne wheeler 4. offer to transporter: Offer of truck requirement sent to registered transporter as per business quota by SMS& E-mail this is allocated in oracle system as per quota provided to different transportation within 100% in per-sent basis which is allocated in system .we see following i. We first sent offer to highest %transporter for truck requirement. ii. If truck available by the transporter within 3 hour or denied by the transporter then we give same offer to another transporter iii. In every 3 month we renewal our transport contract. iv. Transporter chosen on quota system as descending order. v. If first transporter will not able to provide truck within a period then we cut 2%from his quota & provide same offer to next transporter including this 2% in his quota. 5. Trucks hiring Generation After conformation of truck availability by transporter we generate truck hiring slip for given truck number. i. Two copy of hiring slip is printed ii. One copy for office record iii. And second copy for transporter iv. Once the delivery grouping is completed, transporter are instructed to place truck.. v. All details update on oracle
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Truck in: - Based on hiring slip ,truck are allowed entry inside Hindalco premises for loading - Tare weight of empty truck is taken inside plant at the weight bridge before. 6. Loading slip generation : i. Once the truck placed inside, weight slip provided to warehouse office. ii. After getting weight slip warehouse office provide loading slip to transporter for loading of goods. iii. Loading slip mention the all the details of goods. iv. In loading slip

I. II. III. IV. V. VI. VII.

Product Product weight Size (in case of extrusion product) Packing detail &No. Lot No. Gross weight & net weight of packed goods. Destination & party name

V. after getting slip transporter go to warehouse according to goods to be loaded e.g. WH-1(wire rode), WH-2(rolled) WH-3(Extrusion) & WH-4 (ingot). vi. Vehicle to be loaded is checked by shift in- charge for:i. Tally the truck no with the loading slip ii. In case of export container, container no. must be confirmed with the loading slip. iii. Truck floor should be clean &dry . iv. Good quality tarpaulin should be spread on floor. Heavy metal loaded at bottom section and hollow product loaded register following data are maintained i. Date ii. Truck no iii. Transporter name. iv. Product v. Condition of truck floor, truck body wall &tarpaulin . vi. Truck placement time at loading point & loading completion time.
55

i.

vii. No. of packets loaded. viii. Driver receipt /signature ix. Loader signature x. Signature of sift in charge. xi. And last photography of truck for future reference. 7. Gate pass generated : i. Intermediate weighing is done between loading of different product group. ii. Once all the packets /materials are loaded ,final weighing of trucks is done iii. Final weighing data is crossed checked in warehouse and if the same is correct factory gate pass is generated. iv. We only accept weight differences in weight up to 40kg ,40kg for 15tonne truck & 25 kg for 9 tonne truck v. Incase of any variation truck is called in loaded area and individual packets are rechecked vi. On the basis of weight slip we generate the gate pass for truck .we print three copy of gate pass one for office record , second for transporter & third for invoice generated . 8. Ship conform: With gate pass print we conform the shipment of goods as according to consumer demands as

i. ii. iii. iv. v.

Weight of goods (gross weight & net weight) Product Lot no. Packet no

Truck no etc. 9. Invoice generation After ship conform on the basis of L.R. & challan, invoice section prepared invoice of good for customer. Hare we print 2 copy of invoice, one for office record, and second send by courier to consumer .and one Xerox of invoice provided to truck driver .invoice mention the following information i. Consumer name ii. Delivery no. &packing date iii. Destination of goods iv. Weight (gross weight & net weight ) v. Number of packets vi. Length section
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vii. viii. ix. x. xi. xii.

Rate Trade discount Packet no. & batch no Truck no. Transporter name. Date of dispatch

10. Truck out:-After creation of invoice, truck driver go for security check. Gate security check the weight slip and gate pass of truck. After conformation of all think is right security give him swipe card (E-trans) to lorry driver for, know the lorry position on running road & goods position.

57

Process overview: loading & dispatch

Inputs

Process
Grouping of FG based on destination, production type &c.m. requirement Truck requisitioned from transporter as per requirement

output

Product entered in FG records

Hiring slip generation

Truck allowed access into plant based on hire slip

Gate pass generation

Loading slip generated at warehousing dept. based on hire slip

Loading at warehouse as per instruction on the loading slip

Lorry receipt (LR)

Physical copy of gate pass &LR sent to the invoice section

Invoice generation

Material shipped to destination

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SOP Outbound Logistics Freight Bill Processing Facts: Outbound logistics deal with outward movement of finished goods from Renukoot to various destination including deports and consignment agents. The logistics deportment has entered in an agreement with transporter for rate to be charged and delivery of goods subject to approved terms and conditions for the movement of finished goods. Activities Receiving the bill on freight term paid basis Process The transporter submit theirs bills on daily basis along with the acknowledgement of receipt of goods by the consignee to the logistics deportment

Processing and verification of bill

Outbound freight bill processing section process the bill in outbound freight bill processing module through input of L.R. to get appear the detail of dispatch and after checking the consignee name ,destination, rate ,ftl, did etc.., arrival and delivery date is fed in system. Also select the go down/ self/ bank as the case. After checking and verifying the bill the same is saved and completed in system. Discrepancies in terms of arrival/delivery date, consignee name tec. Transporter has to arrange rectification of the same from consignee or product coordinators Shortage in pkgs/pieces endorsed by the consignee on acknowledgement area to be given to Mr. manvirajad or
59

Discrepancies

Shortage

Mr. Rahul for advising account to raise debit note and the same is attached with the bill for processing sometimes shortage is only endorsed in terms of weight whereas number of pieces/pkgs is received in correct number bill is passed on the strength of under taking submitted by transporter. Although we consult with the concerned person looking physical nature complain to investigate the case. Damage Various remarks of damages like wet, scratches loose and clearly damage are endorsed by consignee bill are passed on strength of under taking. to arrange damage certificate from transporter survey report is required and this is separately dealt by physical nature complaint. As this requires survey report indicating accurate loss. Following tolerance is allowed : Ingots -10Kg Semis-250 Kg Wire rod -500Kg Exceeding the above mentioned weight we require mail or approval from co-ordinator Penalty Auto penalty is deducted by system comparing the days mentioned in location master and actual delivery days.

FTL

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Flow Chart Freight Bill Processing


Receiving of Bill

Checking & verification Disputed bill shortage

damage

Normal Bill

Arranged rectification by carrier

Forwarded to Mr. Ajad debiting

undertaking

processed

T.D.S Applied

Amount Deduction /Added

Print is taken and submitted to account

Paid data is submitted to excise after getting the data note captured in report from Mr. Ashok Singh 61

Transporters selection process

Tender advertisement in national news paper

Request latter received from transporter for registration

Submission of registration from by transporter

Scrutiny of transporters from

Auction on lowest price bid & % on which he agree to work in zone wise

Scanning of work performance. No of trucks & experience

Allotment

Base of business quota system

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Net sales of aluminium products year 2012-2013


Products Tonnes(1213) Tonnes(1112) For the year ended 31st march,2013 767.18 For the year ended 31st march,2013 586.79

Hydrate &alumina (standard metallurgical & specials) Aluminium ingot/billets Aluminium trolled products Aluminium extruded products Aluminium redraw road Aluminium foils Net sales (Rs. crore)

309,566

241,095

209,910

222,347

2,301.33

2,020.74

177,409

184,186

2,541.07

2,276.74

35,033

38,874

551.16

549.35

94,294

91,964

1,092.87

913.72

17,754

16,962

382.35

363.11

7,635.96

6,710.13

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Zone wise distribution of Aluminium products

East

West

North -A Delhi

North B Basti

South -A Anan tapur Anga maly

SouthB Kadiy am Kannu r eerla Karaic al Karaic al Karaik kudi Korur

Kolk ata Jams hedp ur Ranc hi Sarail la Cutta k Bhun eshw ar Amta la Aura gabad

Katni

Raipu r

Chan digar h Aliga rh Allah abad Alwa r Amb alaca ntt Amri tsar Balli a

Bathind a

Silwas ha Taloja

Beawar

Attib ele Banal kot Balan ager Bella ry

Bharatp ur Bhardes h Bhilwar e

Moud a Ahma dnagar

Akola

Bhiwadi

Calic ut Chala kudy

Kochi

Amba d

Bilaspur

Machi lipatn am Madh avara m Padi

Belur

Barod a

Bans wara

Biswan

Chen ni

Dhan bad Dum dum

Bhiwa ndi Bhopa l


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Chopan

Coch in Coim bator

Dadri

Peeya

e Durg apur Hazar ibad Hirak und Khur da Purni a Raya gada Bhuj Deoban d Faizaba d Eluru Puukk ottai Salem

Chaka n Dadra

Erod e Hubli

Zahira bad Vellor e Trichy

Dahej

Jigni

Dhar

Durg

Thriss ur

Goa Halol Indore

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Process For Fixing the Rate of Freight


Step-1 Identify the fixed cost a) Capital cost of truck let [a] b) Insurance cost and other annual fixed cost let [b] Step-2 Find out capital cost recovery factor let (cr) annual in rupees. Cr=l/1-(1-i)/n Here, I (interest rate)=11% & n (life of truck)=15years Step-3 variable cost to be determined a) Crew /staff charges let [d] rupees per day b) Fuel cost let [e] rupees/km. e=x/y Here x=diesel price per liter, y=fuel consumption rate given in km/liter c) Other expenses like maintaince etc. let [f]

Step -4 Determines the total daily cost of average day a) Capital cost =a*c 1/g b) Other fixed cost =b 1/x*c c) Variable cost =d+(e*h)+f h=average distance of movement in km/day which depended upon the speed of movement and the time of truck operation in a day d) Total daily cost =a+b+c=j Step-5 determines the total daily freight traffic. a) Average daily volume of freight carried by truck [k]=h*l Here l=load/truck (in tonnes) Step-6 Calculate the freight rate n=j[1+m/100] Where n=total daily cost adding to total overhead cost with profit of m & m= total overhead cost +profit expressed as 5 of total daily cost
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Step 7 determine the freight per tonne per km. P=n/k Where p=price tonne /km

Working cost per km per tonne


Distribution of fixed cost Truck price per km=total capital invested for truck Per day running *days in a year *truck life in year =14, 00,000 300*324*10 Insurance charges per km = total insurance charges Total running per year = 36000 97200 =0.37 paisa per km =Rs. 1.44 per km

Road tax =

Road tax Per day running *running days in a year *truck life in year
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=21500 300*324*10 =0.22paisa /km

Registration fee =

Registration fees Per day running *running days in a year *truck life in year = 140 300*324*10 =0.0000144 paisa/km

National permit charge = total national charges Per day running *running days in a year = 15000 300*324 =0.15paisa /km

Interest on loan = total interest on loan Per day running*running days in a year*no of year interest charge = 7200 300*324*3.321 =0.246 paisa /km

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S.W.O.T Analysis Strengths1. Worlds largest integrated aluminium plant. 2. Lowest cost producer of aluminium plant. 3. The plant is backed by co-generation power unit and a captive power plant at Renusagar. 4. Sufficient space for future expansion and modernization plans. 5. Companys esteemed brand image to the world level. 6. Having he network and most assumed supply position. 7. The companys favorable attitude towards safety, environment and quality consideration. 8. Quick decision making and flexible marketing policies. 9. Easy mode of payment and flexible marketing policies. 10. Ability to face high prices competence under adverse marketing situation.

Weaknesses1. Remote location with transportation bottlenecks. 2. So many organized and unorganized firms in nearby area. 3. Present distribution system and production capacity in not adequate to meet the present and future demand. 4. Does not adhere to delivery schedule. Late delivery is recurring problem. 5. After sales service and clime settlement is a slow process.

Opportunities1. Rapid increased demand of aluminium and its product both in India and abroad provides the company the opportunity of enhancing its production and distribution worldwide. 2. Diversification strategy if properly adopted, it could open new horizon. 3. Export of both primary metal and export quality consumer properly adopted, it could open new horizon. 4. Export of both primary metal and export quality consumer products, such as, foil and wheel could prove to be one of the major opportunities. 5. Manufacturing of aluminium cabinets of computer and inverters.
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Threats1. Cut throat competition with major and new modernized aluminium producing industries. 2. High price of aluminium as compared to its cheap substitutes such as-

a. b. c. d.

Polyvinyl chloride. Moulded plastic. Steel. Wood.

3. Policy of government to increase export and excise duty could also increase the cost of sales and result in reduction of market share. 4. Development of light weight steel is also one of the threats to the aluminium industry.

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FINDINGS

Hindalco is the leading producer of aluminium primary & semi- finished products in India. FIEO (Federation of India export organization) has awarded Hindalco as 5 star trading houses on their achievement. Hindalco is following all norms as per central excise & custom and other governments rules & regulation in the export process. Hindalco is following positive and proactive approach towards aluminium production with highest purity metal. Hindalco is exporting from Kolkata and Mumbai port both. Hindalco is exporting all over the world. Hindalco is having 52% share in primary aluminium production and 36% share in aluminium extrusion market. Hindalco is now going to use GPS system in our transportation truck & lorry Full truck loading (FTL) for reducing the charges of transport

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SUGGESTIONS

I. II. III.

Company should improve its transportation facility. Need to increase distribution concept throughout the country. Try to replace 10 wheeler truck with truck having more capacity as transport economic has proved that more capacity of vehicle less per km/per tonne rate. Freight rate tonner /km should be updated so that they are in tune with the current status of the market. There should be a secret vigilance person to check whether the security goods are properly checking the loaded trucks or not

IV.

V.

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CONCLUSIONS

Hindalco is an organization which is very efficient to compete with its competitors. The organization is very well lashed with the latest technology and believes in changes for the betterment of the company and its employees in sync. The logistics management of the company is honed with export who keeps implementing the new system and skill to reduce the overall cost of the company. There is a high co ordination amongst the department which is the key requirement for an effective and positive result.

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ABBREVIATION.
HOD PPE PM MHO MC ICD ARS MIS CRM LMS AP RC FTL CMO GPS P&B RFG LR TDS MTS & MTO : Head of department : Personal Protective Equipment : Primary Metal : Marketing Head office : Material Clearance : Inland Container Depot : Application for removal per export : Management information system : Customer relationship management : Landon metal exchange : Account payable : Registration certificate : Full truck loading : Chief marketing officer : Global positing system : Planning &Budgeting : Renukoot finished goods : Lorry received : Tax deduction at source : Month to stock, Month to order

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BIBLIOGRAPHY BOOKS 1. Marketing management 2. Logistics Management 3. Warehouse Distribution MAGAZINES: Impex times Aluminium Now Aluminium Times Annual Report Hindalco AUTHORS : S.A. Sherlekar : Donald J. Bowers ox David J. Closs : David E. MucaliyS

INTERNET WEB SITES: www.wikipedia.com/logistics www.google.com www.novelis.com www.adityabirla.com

SOFTWARE USED: Microsoft word Microsoft Visio Mozilla Firefox

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