TRANSPORTATION MANAGEMENT

ACKNOWLEDGEMENT
The basic and critical information for this study have been provided by the various team
members of KPML logistics team. The inputs and suggestions given by the team members are
thankfully acknowledged and have been duly considered and incorporated in the appropriate
places in the report.

1.0 Types of Trucks required

 On a daily basis an approximate volume of 1100 Tonnes of Paper cargo is to be

transported by trucks

 Depending on Quantity and Location, different types of Trucks will be used

 Types of trucks that will be used in most cases, include a load capacity of

1. 16 T

2. 22 T

Note: in some cases, 27 Ton trucks will be used depending on volume

1.1 Number of Trucks required per day

 On an average 90 trucks are used to dispatch 1100 Tonnes of paper daily

1.2 Existing Practice :

Logistics team has the responsibility of placing trucks on-time for dispatch of finished goods.

Currently, based on the volume of goods to be dispatched, logistics team calculate the number
of trucks needed and through multiple contacts, transporters and middlemen, the number of
trucks needed are placed. Freight cost is decided on the market ‘demand – supply’ conditions.
This practice provides ample opportunity to take leverage of freight costs during lean periods,
when trucks are available in abundance.

Difficulty is experienced during peak seasons and harvest seasons when the demand for trucks
are more. This poses problem in the following dimensions –

 non availability of sufficient number of trucks

 heavy freight rates and middlemen dictating terms

 late placement of trucks leading to late deliveries to customers

 poor quality of trucks

 unable to insist on compliances

 panic situation and high expediting/follow up activities

 un-cleared FGs inside warehouse leading to space shortages

 un-met demands leading accumulation and overloads in the next periods

 pressure to clear back log quantities leading to chaos and poor accountability

 over loads leading to potential errors in dispatches

 backlog clearing leading to crowded loading bays

 backlog clearing leading to congested security points and possible dilution of

compliances

 Accumulated back log leading to congested plant as a whole.

1.3 Way forward:

To overcome these challenges, it has been suggested to engage transporters, contractors on a

long term basis, since the volume to be dispatched almost fixed – 1100 tons per day. One of
the way is to engage ‘third party logistics service providers’ through a comprehensive ‘Service
Level Agreement’ (SLA). They can be engaged on sector basis – like for northern sector, western
sector – from the past data – DCs, RDCs, Customer locations, Paper grades, SKUs, volumes,
dispatch lot sizes, mode of transportation (road / rail), exports quantity etc., as in table format
given below. The selection can be done based on price, flexibility, expertise, time
commitments, sectoral strength etc.,followed by negotiation of freight costs.

Next option is, empanelling a pool of transporters for each sector. This can be done by
tendering. KPML can intent to have two/three transporters enlisted for each destination/
mode at L –1 rate.

L-1 rates (with or without negotiation as the case may be) will be offered to other tenderers in
ascending order of the position for respective destination for their acceptance. The work shall
be equally divided between the two or three enlisted tenderers.

In case of non-acceptance of L –1 rate (with or without negotiation as the case may be) by any
other tenderer, the order for entire transportation for that destination/ that mode by that
mode may be placed on the original lowest tenderer.

Paper Variety & grades in Tons - North South West East

Regions

Paper Reels

News print

Sheets

Boards

1.4 Advantages :
  Since the transporter bears the commitment of placing the trucks on time, the risk of
uncertainty is reduced

 Over a period of time, the freight costs get stabilized and will be predictable

 Expediting costs will come down

 Professionalism in logistics management improves

 A smooth, uniform and consistent out flow of FG is ensured

 This increases the reliability of KPML in meeting commitments which leads to increased
customer satisfaction

 Over a period of time, additional values can be expected from transporters – in terms of
quick turn over of inventory, passing on the responsibility of loading on to the truck,
responsibility of follow up of consignments etc.,

 For certain locations, the same trucks can be used for bringing in raw material, waste
paper and also for dispatching FG. This increases KPML’s negotiation power

1.5 LSP Selection Criteria

• Organizational Background
• Network coverage
• Network with other LSPs
• State-wise presence
• Financial Back up
• Route Experience
• Sector Experience / similar products handling experience
• Flexibility & Scaleablity
• Deliverables list
• Opinion from other users
• Service levels
 • Risk sharing attitude
• IT & Communication systems

1.6 Eligibility Criteria for Truck Operators / transporters (Indicative) :

 Either 3PL or empanelled Truck operators to be considered for Paper transport will be
assessed on a variety of parameters including, but not limited to…

1. IBA Approval

The Operator should be an “Approved carrier/transporter” as per the Indian

Bankers Association. Registration should be valid for three years
2. Company Background

The company should be of repute in transport business

3. Fleet Strength

a) Shall own a fleet of minimum 25 (twenty five) trucks

b) Not more than 10 years old

c) To be registered in the name of the company, it’s Directors or partners

4. Market ability to hire vehicles for KMPL on 24 hours notice

The service provider should be able to provide dedicated vehicles for KMPL Paper
transport.
5. Experience

Should have executed single work order value of Rs 3 crores in transportation business to
any single customer during the span of one year in preceding five (5) years to be
reckoned
6. Office Location

a) shall have an established office set up in Amritsar or nearest possible location from
KMPL plant
b) Projects handled based on Pan India operations and Regional expertise

c) Network

 A minimum of 5 branches across India

 District level reach

d) Permits

The Truck provider should possess the necessary permit at all times
(National/State/Zonal)
e) Vehicle maintenance documents must be maintained

a) Service records

b) Pollution test certificates

f) Manpower

a) Should be able to allocate dedicated resource for operations at KMPL

g) Customer care

a) Must have a toll free or dedicated number(s) for 24 X 7 service for KMPL

1.7 Responsibilities of Truck operators as Service providers of KMPL, Amritsar for

Paper Transport:

1.7.1 Shall position vehicles for continuous dispatches as per the dispatch plan
given by KPML logistics team

1.7.2 Trucks shall be provided for each market/destination within 24 hours

advance planning/notice
1.7.3 Vehicles provided to be in road worthy conditions throughout complete
duration of journey and should comply with check list that will be given
by KPML

1.7.4 Trained drivers should be used

1.7.5 All types of transport connected with the work will be in the scope of the
contractor

1.7.6 To always provide clean and washed cargo area on the trucks without any
protruding nails / broken floor blanks etc.,

1.7.7 Trucks to be covered with tarpaulins to avoid dust/moisture after loading

1.7.8 Shall ensure that the trucks meet requirements as specified under CMVR
(Central Motor Vehicles Rule - latest)

1.7.9 To provide safety sign boards on the outer body of the trucks as advised
by KPML.

1.7.10 Before transit will check the head and tail lights, brakes and direction
lights of each vehicle provided for service to KPML

1.7.11 Check all necessary papers/invoices, transport documents, identity

papers etc before transit from KPML plant

1.7.12 While en route to destinations will ensure safety by not leaving vehicle
unattended

1.7.13 Will always follow a predestined and planned route to the specified
destination

1.7.14 Will drive at a designated speed and a reasonable safe distance from
other vehicles.

1.7.15 Follow road safety rules and regulations while driving and parking.
1.7.16 Truck operators will provide uninterrupted movement of cargo from
KPML to targeted destinations.

1.7.17 Will have to bear responsibility for safety and security of cargo while on
transit and until final destination.

1.7.18 Will not do any transshipment, except in case of accident/emergency.

1.7.19 Shall inform KPML immediately in case of any accident/emergency.

1.7.20 Shall provide KPML with visual evidence of any such accident.

1.7.21 In case of accident or unavoidable emergency, the transporter can do

transshipment, however only after confirmation from KPML.

1.7.22 Responsible for delivering the correct quantity and quality of cargo as per
invoice specified.

1.7.23 Shall bear complete responsibility and cost for all loss and damage of
Cargo.

1.7.24 Shall make delivery in all instances within accepted time.

1.7.25 The transporter shall provide updates on the locations of

trucks/consignment on fixed intervals

1.7.26 Will not permit their trucks to be off the road for any unreasonable
period of time.

1.7.27 Will not hold up deliveries for any cause.

1.7.28 Will use double tarpaulins and extra care during monsoon

1.7.29 To prevent seepage of water during rainy season, 4 tarpaulins should be

used. Two tarpaulins shall be placed one over the other, along the
length of the truck with sufficient overlaps. Other two tarpaulins
 should be placed one over, along the length of the truck but
sufficiently offsetting the joint of the first layer of tarpaulins.

1.7.30 Care has to be taken that the top most layer of the tarpaulin is along the
forward movement of the truck and not against the direction of
movement so that tarpaulin is not lifted off due to wind force.

1.7.31 Will duly follow all the rules of the land, Motor Vehicles Rule etc.

1.7.32 Compliance of all government regulations pertaining to route permit etc.

1.7.33 The transporter shall ensure that the entire documentation for
transportation of material like invoice, challans, Road permits, Way
bills, Excise documents and declaration forms under Sales Tax Law and /
or any other documents as per the prevailing rule have been complied
with before dispatch of vehicle

1.7.34 It shall be the responsibility of the transporter to complete all

formalities/documentation/payment of Octroi whenever applicable. The
Octroi amount, however shall be reimbursed to the transporter

1.7.35 Insurance:

 Transit insurance :

In respect of all items to be transported by the Contractor, the cost of transit

insurance should be borne by the contractor and the quoted price shall be inclusive
of the cost.
 Comprehensive Automobile Insurance

This insurance shall be in such a form as to protect the Contractor against all claims
for injuries, disability, disease & death to members of public including Employer's
men & damage to the property of others arising from the use of motor vehicles
 during on or off the 'site' operations, irrespective of the employership of such
vehicles.
 Comprehensive General Liability Insurance

 The policy shall cover 3rd party liability. The 3rd party liability shall cover the
loss/disablement of human life [person not belonging to the Contractor] and also
cover the risk of damage to others materials/equipment/ properties during
construction, erection & commissioning at site.

 Policy should cover the risks mentioned below, but not limited to

a) Fire

b) Theft

c) Pilferage

d) Quality deterioration due to ingress of foreign particles/dust

1.8 PRICE VARIATION:

1.8.1 The quoted rates shall remain firm during the contract period and
no escalation will be granted on whatsoever ground, including
among others, increase in the cost of spares/ tyres or levies etc.
The transportation rates per MT of Paper shall be subject to
variation only on account of variation in the price of High-Speed
Diesel (HSD) as officially announced by oil Companies and as per
the minimum price prevailing at Amritsar, Punjab from time to
time.

1.8.2 Basis of calculation of escalation will be applicable uniformly

irrespective of make, model and loading capacity of truck.

1.8.3 The formula for price variation is

 Increase or decrease in transportation rates = 0.4 % for every 1 % increase or decrease
in base HSD price as per formula given below:

% increase/change in contract rates = (P1 – PB) / PB x 100 x 40/100

Where;
P1 = HSD price on 1st of the following month after the diesel rates revision
PB = Base HSD price on the date on which initial rates were quoted by transporters from
Amritsar.

1.8.4 The retail selling price of HSD as on the date of entering into agreement will be
the base price

1.8.5 The escalation/de-escalation of transportation rates will be allowed every

quarter i.e on 1st January, 1st April, 1st July and 1st October.

1.9 PENALTIES

1.9.1 PENALTY FOR LATE PLACEMENT OF VEHICLE:

In the event the vehicle is not placed in time requested, KPML shall have the right to
source the vehicles from any other sources at the risk & cost of the defaulting
transporter(s). All additional expenses incurred by KPML towards the freight for such
alternate arrangement would be recovered from the defaulting transporter(s).

In addition, a penalty @ Rs. 500 per day per truck would be charged for delay beyond 24
hours of Intent.

1.9.2 PENALTY FOR NON-ADHERENCE OF THE TRANSIT TIME

For non-adherence of the transit time, the Contractor will be charged a penalty @ Rs. 50
per MT per day. For the purpose of this agreement, transit time shall be calculated from
 the day the truck leaves the originating point, as indicated in the excise invoice, till the
truck reports at the receiving point as endorsed by customer, on the challan
acknowledgement/gate house receipt. Indicative transit time, including day of loading
and day of unloading, destination wise will be given by KPML and mutually agreed.

1.9.3 PENALTY FOR TRANSHIPMENT:

No transhipment of goods will be allowed without prior notification & further

permission from concerned KPML authority under any circumstances except Vehicle
breakdown and accident and for the consignments.

Penalty @ Rs.100/- per MT against transhipment or part delivery without valid reason
shall be imposed in addition to the consequential loss/damaged caused thereof.

Moreover, this shall be treated as breach of this contract and KMPL reserves the right to
discontinue the business of the Contractor immediately on notice of breach of this
clause.

1.9.4 PENALTY FOR LOADING GOODS OTHER THAN KMPL’S GOODS:

The Contractor is prohibited from carrying any cargo other than that of HMEL while
transporting Paper from Amritsar.

KMPL reserves the right to terminate the contract immediately on notice of breach of
this clause.

Penalty @ Rs.10,000.00 per consignment if the transporter is found carrying any other
material along with KMPL Papers.

Any loss/ damage to KMPL on account of loading goods other than KMPL’s goods by the
Contractor shall be recovered from the contractor.

1.9.5 PENALTY FOR SHORTAGE/ LOSS/ DAMAGE OF PRODUCT:

 KPML shall penalize Contractor with the amount of damage/shortage of goods as per
invoice raised by KPML on consignee, if there is any shortage, loss and/ or damage to
the product/ packaging found at consignee’s end. KPML will hand over the product in
correct weight and duly packaged at Amritsar and contractor shall be free to check and
ensure at the time of lifting the product at Amritsar.

1.9.6 Any consequential loss due to delay in supply of cargo, costs, and/ or damages, KPML is
required to pay to its customer for not delivering the cargo in stipulated time schedule,
shall also be recovered from the Contractor.

1.9.7 Tracking and Tracing of Cargo Truck(s)

 One of the additional service factor of the truck operator should be vehicle tracking
using Telematics

 It works, based on a concept called Automatic vehicle localization system (AVLS, also
known as GPS vehicle localization)

 It is used to track transit time, vehicle movements and identify routing, delays, etc

1.9.8 Features of this application

a) Global positioning system (GPS) based tracking

b) Precise location & speed information

c) Confirmation on Transit time

d) Maximum geographical coverage

e) Communication options

f) Route optimization , distance and speed

g) Monitor idle time / route deviation

 h) Current location data request / response via SMS

1.9.9 Value obtained for a transporter would be

1. Improved productivity in terms of time and safe delivery

2. Idle Time reduction through better monitoring

3. Improved Route planning & Better Fleet Utilization

4. Improved Revenues & realization

5. Estimation of arrival time

6. Improved Response to Breakdowns

7. Better Customer Service Levels

1.9.10 Reports

Various useful reports can be generated using the online connectivity provided by the
wireless data connectivity of GSM to every vehicle with the GPRS (gateway packet radio
service)
1) Vehicle status report

2) Speed violation report

3) Distance traveled report

4) Idle time monitoring report

5) Route deviation report

1.10.0 Transport Contractor evaluation by KPML

It is suggested, KPML should manage a performance measuring system in order to

determine the
 Quality & Level of service

1.10.1 Quality of Service

1. Availability

a) Service coverage

b) Frequency

2. Service Delivery

a) Reliability

3. Safety and Security

a) Vehicle accident rate

b) Cargo damage

4. Maintenance

a) Fleet cleaning and performance

b) Truck service

5. Vehicle Capacity

a) Vehicle capacity
b) Volume to capacity ratio

6. Travel time

a) Delay in transit
 b) Delivery

1.10.2 Carrier Evaluation Report

Carrier
S No: Maximum Rating Evaluation Rating Comments
Rating

1 Adheres to pick up schedules

2 Meets Delivery schedule
3 Overall Transit Time
4 Consistency in Transit Time
5 Timely settlement of bills
6 Truck availability
7 Vehicle condition--road worthiness
8 fulfill scope of operations
9 Cost
10 Profitability
11 Damages --frequency & Value
12 Problem solving
13 Operations manpower quality
14 Customer acceptance
15 Management--trust and responsibility

1.10.3 Performance Rating

The Contractors performance rating will be done on a monthly basis on the following
parameters:
1. Placement of trucks Vs indent given

2. Adherence to agreed transit time

 3. Percentage of cases with shortages, damages, etc

4. Adhering to KPML’s Terms and Conditions

5. Acceptability levels of vehicle cleanliness

6. Safety related issues/awareness

7. Feedback / complaint from Consignee/customer end

8. Penalty should be enforced based on the Evaluation report and rating.

1.11 TRUCK PARKING MANAGEMENT – TRUCK YARD

1.11.1 The trucks that are scheduled for dispatches have been provided by a separate
parking yard.
1.11.2 The average truck dimension being 3 x 10 Mtrs, the number of trucks, the yard can
accommodate can be calculated. The different type of trucks (9T – Multi axle, trailer) and their
average numbers can be derived from this.
1.11.3 The parking yard can be divided based on types and volume of trucks and parking lot
numbers can be allotted for easy identification. Yellow lines, reflectors are to be
installed to mark parking bays.
1.11.4 Separate area can be allotted for trucks carrying incoming chemicals both liquid and
solid products. Based on the average number of trucks received, sufficient area can be
allotted.
1.11.5 The parking lots can be allocated transport contractor wise. This will help in
parking the trucks of a contractor in one location.

1.11.6 The trucks on entering the KPML complex will be registered and move on to
the parking yard. On parking of the truck in the designated area, the transport
contractor incharge, will inform the Logistics team. This will enable the Logistics team to
raise the invoice in co-ordination with the marketing cell with the truck number clearly
mentioned on the invoice.
1.11.7 A public address system must be provided for calling the trucks to the loading bays. The
bay number must be also be announced for easy navigation to the driver. This will avoid
queuing and waiting of trucks, drivers, cleaners inside the plant.
The drivers, cleaners, loaders, assistants are to be checked thoroughly and should be
instructed not to carry matches and smoke. An instruction card listing ‘Dos’ and ‘DON’Ts
in local language has to be given to the driver and can be collected back at the time of
leaving the plant.

1.11.8 The yard must have the following;

I. Even surface with asphalting or paved with blocks
II. Proper Layout with painting in reflector paint
III. Good Lighting System - high mast lighting system with footing protection
IV. Public Address system
V. CCTV for monitoring – Surveillance camera
VI. Fire fighting equipments
VII. First Aid centre
VIII. Canteen facility
IX. Internal Communication telephone
X. Fencing around the perimeter of the yard
XI. Security at the gate of the yard
XII. Rest rooms and waiting rooms for drivers

8.1.1 The trucks may be subjected to random weight check on the weigh bridge

8.1.2 The dispatch personnel should check the condition of the truck (floor, sides
and the door) for any holes, projection, contamination etc. The truck should be clean
and dry before loading commences.
8.1.3 The security concerned should do a random check of the truck for RC Book, FC details,
Driver License, Pollution Certificate and Vehicle Insurance.

8.1.4 The transporter should take care that he does not exceed the loading height
and also should not over load the truck.

8.1.5 The transporter after loading the truck should cover it with tarpaulin and fasten it with
rope securely. There should not be any damages to the tarpaulin to avoid seepages of
water during transit or damage to the bags.

8.1.6 The transporter should not use synthetic or plastic sheets for covering the material.
These sheets will tend to absorb lot of heat when the trucks are travelling during the
day time and this may cause damage to the material.

8.1.7 The truck shall leave the loading bay only after the authorized personnel of KPML has
done a visual check and approves for dispatch. The inspecting person should initial on
the extra copy of the invoice.

8.1.8 The transporter at the time of exiting out of the warehouse shall surrender one extra
copy of the invoice, to the security personnel. This extra copy should be signed by the
transporter representative and the driver of the truck.

8.1.9 The security personnel shall hand over the all the extra copy of invoice collected from
the various trucks to the Logistics team at the end of each shift. The Logistics team
should reconcile with the invoice raised and quantity dispatched on day to day basis.
“SUPPLY CHAIN IS AS STRONG AS ITS WEAKEST LINK”
KPML has reconfigured its entire supply chain of ‘recovered fibre’, with domestically sourced
used/waste paper by outsourcing an essential link of the recovery process to waste paper
depot operators. These independent depot operators has to collect and sort, used/waste paper
through a network of buy-back centres and, further down the chain, a large network of
individual hawkers. The hawkers are at the bottom of the supply chain of recovered fibre.

The depot operators have two major supply channels for recovered fibre, the pre-consumer
market, and the post-consumer market.

The pre-consumer market refers to paper fibre before it reaches the consumer market. This
includes mainly paper and cardboard discarded by the producers as waste or rejects. It also
includes unsold newspapers and other printed material that never reached a final consumer.
The post-consumer market refers to recovered fibre after use by the consumer: mainly
office paper, newspapers, discarded packaging, boxes and cardboard. There is a wide variety
of sources and intermediaries in the post-consumer fibre supply channel: these include
offices, shopping malls, schools, kerbside collection (i.e. pavement pick-ups in residential
areas), cut paper from printing press etc.,
The small entrepreneurs running the depots typically may come from low-income communities,
often with backgrounds as traders in the informal economy, free to sell its paper to the highest
bidder. As a result, they may be vulnerable due to a lack of skills, especially in terms of financial
literacy and general ‘formal’ business management skills.

Efficiency of a Supply chain is depending on each and every member of the supply chain
therefore, “SUPPLY CHAIN IS AS STRONG AS ITS WEAKEST LINK”
It will therefore be a strategic competitive advantage for KPML to have a secured supply
of access to recovered fibre – the waste paper, and in this regard, it can be stated that “closer
partnerships” with depot operators will yield significant advantages over the long term.
  Many Paper mills who use wood as feed stock, engage local community for plantation
of eucalyptus trees and conifers.

Depot operators cannot be seen as a mere waste paper collection agents, they have to be
graduated to the status of ‘suppliers’ and in long term ‘partners’ to KPML.

 Waste paper collection depots constitute the vital link between the informal network of
hawkers and paper collectors and the formal network KPML’s supply chain.
 They play an instrumental role in harvesting much of the recovered fibre that would
otherwise end up in landfills, at an obvious environmental cost, as well as an economic
opportunity loss.
 The depots also do sorting and segregation of papers based on type and quality levels
prescribed by KPML
 They have the responsibility of dispatching waste paper to KPML as per the target
 They pay local hawkers by cash

It is suggested that, in addition to the above roles, the depots can add value to
the supply chain of KPML through sorting, bulking and baling.

The depot operators will collect waste paper in loose condition, sort them and compress & bale
to formulate into cubes. Strapping with jute thread will increase the cohesiveness to retail the
cubical shape of bales.
This could be a game changer as below :
 The depots no longer will look like junk yards
 The depots will store waste papers in organized fashion in bale form like pallets
 Because of organized storing, the cubic utilization will improve
 Entire bulk of bales can be stored inside sheds in depots
 Handling of bales will be much easier using forklifts with side grips
 Loadability of trucks will improve
  Accountability and reconciliation of stocks of waste paper will be reasonably better
 Unloading at KPML will be comparatively easier with forklift and side grips
 Importantly, lot of space at KPML stock yard will be saved because of organized storage
in more regular form of bales
 Loose papers strewn all around will be minimized
 Stock of paper in KPML stock yard can be minimized by proper planning – the trucks
carrying bales will be sent to KPML 1/2/4/5/ plant directly and fed into pulper. Reserve
stocks will be kept in stock yard as safety stock
 Accounting and management of stocks in KPML stock yard will be better by allotting
space for different grades of paper to specific areas
 Scaling up after bringing orderliness will be easier through mechanization or automation
Way forward :
 KPML to educate and prepare the depot operators for such value addition
 KPML to provide technical assistance for selecting and operating baling machines
 KPML may have to support the depot operators through banks etc for investing on
baling machines.
The Supplier – Partnering steps :

 Conduct Joint improvement activities - exchange best practices with suppliers, set –up
supplier study groups. KPML can set up a Cross Functional Team to help solve suppliers’
problems.

 Share Information intensively but selectively – KPML has to involve suppliers through
various meeting and other activities.

 Develop Suppliers’ technical capabilities – Waste paper depot operators have to be

promoted to suppliers status. This can be done by KPML’s expert by building suppliers’
problem solving skills, honing their innovation capabilities and continual education. By
this, the value addition of suppliers shall improve.
 Supervise Suppliers – KPML to send monthly report cards to suppliers based on agreed
performance measures, provide immediate & constant feedback and senior managers
are to be involved in solving problems of suppliers if any.

 Turn Supplier competition into opportunity – Since two or three depots are located in
same area, motivating a well performing supplier (timely delivery, quality, flexibility
etc.,) through additional incentive will help KPML to strengthen the Supply chain.

 Understand how your suppliers work – learning about suppliers’ businesses, to go see
how they operate, respecting their capabilities, committing to co-prosperity will help
KPML to mitigate risks.
PERFORMANCE MEASURES :

Performance Measures Performance Measures Performance Measures Performance Measures

for Recycled paper for In-bound Logistics for FG warehouses for transporters of
suppliers Outbound logistics

Suppliers Rating :

The underlying purpose behind supplier evaluation is to reduce the risk and uncertainty
associated with procurement, maximize overall value to the organization and build long-term
relationship with suppliers.
Traditional models of supplier evaluation mostly relied on three most important factors namely
quality, cost and delivery performance history for evaluating the performance of suppliers.
Other important criteria like technological and financial capability of suppliers, governance
system adopted at suppliers’ premises etc. are also to be given much importance. The following
list shows different criteria of supplier evaluation
 Price
  Quality of paper ( nicely segregated)
 Ability to meet delivery schedule / Delivery lead time
 Inspection system at suppliers’ place to certify paper after segregation
 Breadth of product line / Ability of a supplier to supply a number of grades of paper
 Willingness of suppliers to invest on expansion – like investing on baler machines
 Existence of IT / Communication system
 Integrity of vendor/ Vendor’s image
 Financial capability of the supplier
 Business volume / Amount of past business
 Geographic proximity of suppliers
Warehouse Productivity
- Tons or bundles or reels Handled per person per day
- Volume - Tons handled (Incoming plus Outgoing )
- Inbound Lead Time Performance - Tons received and binned within target time
- Outbound lead-time performance - Tons dispatched according to promised time
- Transport lead-time performance - Percentage orders delivered within promised time
- Quality – Discrepancies - Dealer registered discrepancies against the deliveries from w/h
- Bin stock accuracy - difference between computer stock and physical stock
- Stock adjustments = Net Value in Discrepancy against Total Value counted.

- Finished paper Wastage due to Expiration or Damage can be calculated by dividing

unusable physical stock with total quantity of usable and unusable stock and multiplying by
100.

Transportation :
• Average # of hours outside pickup time
-Average number of hours the freight was not picked up on time.
• Average # of hours outside delivery time
-Average number of hours the freight was not delivered on time.
• Average cube per shipment
-Average freight volume this month.
 • Average weight per shipment
-Average freight weight this month.
• Cost per ton
Cost of freight per ton.
• Cost per lane
Cost of freight per lane over the last month.
• Cost per distance
Cost of freight per distance , km covered.
• Cost per pallet
Cost of freight per shipment ship unit.
• Cost per shipment
Cost of freight per shipment.
• Percent on-time pickup
Percentage of time the freight was picked up on time
(within on-time parameters)
• Percent on-time delivery
Percentage of time the freight was delivered on time
(within on-time parameters)
• Percent times complaints filed on shipments
Percentage of time compliants were filed on the shipment over the last month.
• Total shipments
Total shipments in the current month.
• Total cost
Total cost of the shipments this month.
• Total cube
Total freight volume this month.
• Total weight
Total freight weight this month
• Total TKMs - Total freight tons-kms this month.