CHAPTER PLAN

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

PAGE NO

0-3 3-4

02. 03. 04.

4-5 5-12

12-15

05.

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

15-19

06. 07. 08.

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

09. 10.

Suggestions and Recommendations Conclusion and bibliography

Executive Summary

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

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

REASONS FOR SELECTING THIS TOPIC:.

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

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

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

The role of the supplier association, as a collaborative management device, in providing a structure for the achievement of time compression in the supply chain. The paper has outlined the various forces, which have combined in the 1990s to influence the way in which companies have responded to uncertain consumer and supply market changes. The paper has also elaborated the network-sourcing model of collaboration and, while not presented as a panacea or replacement for individual activities between a purchaser and its individual suppliers, it contends that the model offers greater potential benefits than those proposed by other models. The study of the supplier association mechanism is still in its infancy and an important part of future research will involve observational research of these associations in action. Such research activities will inevitably focus on the longitudinal assessment of their effectiveness, the sources of failure and conflict within the system, an appraisal of the successful associations, and the time-based competitive benefits of diffusing associations throughout the supply chain. Nick Rich, Peter Hines and Ford, (1992)

According to the new tendencies in marketplace, such as the growth and spread of ecommerce and e-business, Supply chains and Logistics are naturally being modelled as distributed systems. Companies are organized as Demand and Supply network and the global logistics system is performed by a large-scale world-wide network of local service enterprises. Referring to such scenario, multi-agents and operations research approaches in modelling classical and new complex problems are reviewed and illustrated. Operation Research techniques for centralized optimization are discussed with reference to classical resource allocation and work flow problems. P. Slats, B. Bhola, J. Evers, and G. Dijkhuizen(1995)

The goal of this paper is to propose a decision process for establishing an efficient network of secure storage facilities that can effectively support multiple supply chain facilities. As we seen Terrorist attacks, natural disasters, and regional power outages from the past several years have all highlighted the low levels of disaster preparedness that exist at many rms. Supply chain disruptions caused by external events can have a significant financial and operational impact on firms not properly prepared. Therefore, improving disaster preparedness in supply chains is critical. One critical component of disaster management planning in supply chains is the storage of emergency supplies, equipment, and vital documents that will be needed in times of crisis. Charles K. (1995)
6

The SCM and 3PL have individual advantages. It is recommended that firms, which aim to develop SCM, should utilize 3PL, and that firms which plan to introduce 3PL, should employ SCM. It is believed that SCM and 3PL have positive interactive effects, or synergy effects. This section will show the best combination of SCM and 3PL that would benefit the firm with their interactive effects. When a firm contracts out logistics activities to a 3PL provider, the 3PL provider needs to establish transaction and inventory management systems involving other firms in the supply chain; i.e. supplier, manufacturer and retailer, etc. The 3PL provider does not usually provide all logistics activities solely. Some activities are outsourced to subcontractors. For example, non-asset 3PL providers may outsource a transport activity. Such relationship between the 3PL provider and the sub-contractor likewise constitutes a part of the supply chain process. Murphy P.R. and Poist R.E. (1998)

Innovation has become an important topic or a pre-eminent issue in modern times. Some say that present innovations, in this era of new technologies allied to telecommunications and to computer science, significantly alter social structures, hanging the ways of producing, circulating, distributing and consuming goods, services and ideas; or, moreover, that territories and modern societies are being reorganized in an essential manner by means of scientific and technological innovations. Authors such as Stephen Hawk and Roger Penrose categorically state that those powerful mainframes might never supersede the human beings creative capability for innovating. Innovation is presently the biggest challenge that all companies will have to face no matter how large they are. Upon the rupture of countless paradigms and continuous innovation in the logistic processes, special emphasis is being given to supply chains in general. This has motivated the detailed conceptual study of these chains as well as their association with substantial gains in the strategic alignment and in the companies competitiveness. This scientific article proposes to assess Brazilian logistic systems and their supply chains by an innovative methodology, by suggesting ways to effective logistic innovation and, among the major segments of logistics, by pointing out the ones bearing the strongest innovation potential. Lambert , Cooper & Pagh (1998)

This is not surprising, given that the Council of Logistics Management (CMS) defines logistics as that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, ser-vices, and related
7

information between the point of origin and the point of consumption in order to meet customer desire requirements. Even definitions of supply chains allude to the idea of processes or process management. Keebler et al. (1999) identified key processes that managers should focus on in order to be more effective in managing their supply chains. . The focus of this research is on the second path, strategic management of supply chain activities, which has received limited attention . Cooper, Lambert, and Keebler et al (1999)

SCM encompasses flow of goods, information and money from the raw materials supply stage, through production and consumption stage, and finally to the recycling stage. SCM is composed of several management tools. Different approaches in accounting,

production management, information processing, marketing, etc. have been developed to solve the problems in SCM. For example, accounting approach to SCM mainly focuses on cash flow in the supply chain, while information processing approach focuses on the flow of information. In this paper, we will take our attention to logistics in SCM, which is strategic management of goods flow in the supply chain. Logistics management includes inventory control, material handling, order control, transportation, warehousing, etc. Kunmaraswamy, Palaneeswaran and Humphrey (2000)

The general idea of logistics is to strategically manage the total flow of goods. Thus, logistics optimization is not only accomplished from the viewpoint of one firm, and therefore, total optimization of the flow of goods including firms in the supply chain is required. When trying to optimize the total flows within the supply chain, it must be pointed out that the interests of firms in the supply chain may conflict due to the partial distribution of cost and benefit among the firms. Thus, coordinating the interests of the firms is necessary for logistics management in SCM. They likewise have different skills or competencies, which are complementary and require further coordination.. A firm, which possesses logistics know-how on coordinating economic resources, may have opportunities, to make advises. Such a logistics coordinator, also called Third Party Logistics (3PL), has been gaining attention. Researcher reviews in this paper that 3PL is a new type of industry where the firms logistics activity can be outsourced. Maloni and Benton (2000)

Supply chain solutions are vital in day-to-day business transactions. They are critical to managing two-way information flow across the network, regulating material flow (not physical) in the organization and providing a decision support system. Some of the software modules take care of supply side management processes like supplier management, e-procurement and material management and supply chain network planning, etc. Advanced planning and scheduling, work-centre execution, demand management, inventory management, etc. support day to day operations in the organization and distribution network management. Transportation management, warehousing management system customer order management, order fulfilment, etc. The article review focuses on the use of technology in SCM like SAP modules which helps in managing downstream management functions with an organization. With emerging analytical tools and enabling technologies, it is possible to develop the new techniques of SCM and Logistics management. Carole S. (2000)

The Council of Logistic Management (CLM) definition of logistics management is used as a base to address the implications a complexity perspective has on the logistics discipline. A framework is developed to assess the logistics complexity based on significant properties (structure, Dynamics and adaptation) on three levels of resolution (individual/parts, the firm and the Network). The identified emphasis of planning and controlling in logistics management are Questioned and it is suggested that a change concerning the elements related to the property of Adaptation is needed. The aim of this paper is to discuss the implications a complexity perspective may have on the Management of logistics This means that the process of planning and controlling has to be balanced by considerations to emergent phenomena and the processes of self-organization taking place in the flow of products and information. Waidringer J (2001)

A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers and customer themselves. Chopra and Meindl in their book Supply Chain Management: Strategy & Planning. Chopra Sunil, and Peter Mendel (2001)

Basically the paper has explored if complexity as a concept and metaphor is useful for describing the shortcomings of logistics systems and it has been proved valid in at least one case. The future research envisaged is twofold, to analyze complexity in logistics systems per se and to study different concepts, models and methods that will help us in understanding and adhering to the requirements of a sustainable society. This paper provides the conceptual area of logistics that hopefully will give an increased understanding of the problems and systems analyzed and that it in this way will be a part of a further development and enhancement of the research into complex Logistics systems .The concept of complexity is one tool that is possible to use to assess and model logistics systems in order to create a basis for more efficient and effective sustainable logistics solutions. Tasaka, Hiroshi (2001)

Supply chain integration is difficult for two primary reasons: first, the supply chain is an integrated system that requires cohesive decisions to optimize the system profit and value. In practice, different facilities in the supply chain may have different, conflicting objectives. Second, the supply chain is a dynamic system, which has its own life cycle and continually evolves. For example, supply chain design and strategic collaboration are quite difficult because of the dynamics and the conflicting objectives employed by different facilities and partners. Inventory control is another tough issue. What is the effect of inventory on system performance? Why should a supply chain member hold inventory? Distribution network configuration involves managements making decisions regarding warehouse locations and capacities; determining production levels for each product at each plant; and set transportation flows between facilities to minimize total production, inventory, and transportation costs and satisfy service level requirements. From this paper it reviews that the sharing of data, information, inventory, logistics and knowledge is a challenge of virtually integrating a supply chain. It must be noted that a large extent of corporate technical knowledge is difficult to articulate and tacitly resides in the minds of knowledge workers. Handfield, R. B and J. Ernest, L. Nichols (2002)

The evolution of supply chain and logistics networks reacts the increasing interest towards decentralized Multi-Agent Systems which is pointing out the necessity of evaluating and modelling efficient management and coordination tools. As a response to this active research area, many technologies have been proposed and implemented covering different fields which include optimization, simulation, agent technologies, descriptive models or
10

data mining. The aim of this work is to give a survey of such approaches and to point out new open problems and requests of such decentralized systems. In this sense, crucial an efficient integration of such technologies and the development of quantitative solution procedure, possibly employing optimization techniques, in order to get to a proper coordination of the systems. T.-T. Dang, B. Frankovic, and I. Budinska.( 2003)

Based on a two-stage decentralized supply chain comprising a retailer and a manufacturer, modelling study and analysis have been performed to investigate supply chain members' optimal inventory control policies. The partnerships between the retailer and manufacturer are defined in terms of three information sharing levels. From the comparison results of inventory reductions and cost savings of the two members, it is deduced that Pareto improvement is achieved in respect of the entire supply chain performance. The bullwhip effect exists in the decentralized supply chain in our paper performance of the supply chain. The supply chain partners can use EDI to support a VMI strategy for inventory decision-making. This paper attempts to illustrate the benefits of supply chain partnerships with information sharing. Mc Gavin E.J., Ward J.E, and Schwarz L.B(2003)

The report is based on the essence of recent supply chain development is collaboration across the supply chain. Lack of collaboration in supply chain leads to inefficient Three major activities

production, redundant inventory stock, and inflated costs.

constitute CPFR: they are planning, forecasting, and replenishment. There are a few steps involved in each activity. Planning: Planning starts with a contract that details the

responsibilities of the companies that will collaborate with each other in providing the right products for customers Forecasting: First, customer demand is predicted for all the participating firms. Any differences in demand among participating firms will then be identified and resolved. Finally, a feasible sales forecast for all participating firms is developed. Modifications may be done periodically to reflect the changes in market demand. Replenishment: First, orders for all participating firms are estimated. any

difference among participating firms are identified and resolved. Finally, an efficient production and delivery schedule is developed. Steermann, H (2003)

The research was undertaken to assist logistics managers, researchers and transportation planners to define and comprehend the basic views of logistics and its various applications and the relationships between logistics and transportation. The operation of transportation
11

determines the efficiency of moving products. Transportation takes a crucial part in the manipulation of logistic. Reviewing the current condition, a strong system needs a clear frame of logistics and a proper transport implements and techniques to link the producing procedures. The purpose of this paper is to re-clarify and redefine the position relationship between transportation and logistics systems through collecting and analyzing various applications .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. Proceedings of the Eastern Asia Society for Transportation Studies (2005)

12

4.1 Introduction
Supply chain is the process of moving goods from the customer order through raw material stage, supply production and distribution of product s to customer. Supply chain management has emerged as a product of the modern information technology has enabled the coordination and collaboration that underline todays SCM strategies. 4.2 What is Logistics? Logistics can be classified as an enterprise planning framework for material management, information, service and capital flows. Logistics when seen in the context of the modern day prevalent work environment also includes information that is complex in nature besides giving importance to all the communication and control system that are essential for efficient working of the organization. In the words of a layman, logistics can be defined as having the right type of product or service at the right place, at the right time, for a right price and in the right condition." Logistics has evolved as a common and well-known business concept because of the ever increasing complexities of modern day business. The primary goal of logistics is to effectively manage the project life cycles and resultant efficiency. This has greatly evolved with a logistics manager's role in efficiently designing the products of the company keeping in view the principle of efficient system of supply chain management. In business terms, it can be summarized as a competitive strategy adapted by the enterprise to meet and exceed the expectations of its existing and prospective customers. It refers to a complete process of total supply chain management that is established to achieve a state of perfection through efficiency and integration 4.3 Logistics Management Logistics management is the process of planning, preparing, implementing, and evaluating all logistics functions in support of an operation or activity. Logistics management does not mean a single work activity but refers to a group of activities performed to attain the goal of a business enterprise that is maximizing the Profits. This may involve steps like purchasing, planning, coordination, transportation, warehousing, distribution and customer service. A business can run without profits, but it needs money to fund its services, pay its employees and grow its customer base. Logistics management plays an important part in the present business world; it cannot be neglected by an enterprise focused on growth and profitability.

13

4.4 Production logistics

The term is used for describing logistic processes within INDUSTRIES. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time. The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminates non-value adding ones. Production logistics can be applied 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. 4.5 Logistics Management Process Michael Porter in his famous book "Competitive Advantage'' has spoken of the value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The various processes and elements that are part of logistics as a discipline are: Inbound logistics: Purchasing, Inbound transportation, Inventory Management. Manufacturing: Production planning systems, Machine scheduling system. Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems. As customers started demanding improved servicing standards, fast cycle time has become the key factor for business success, whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit. Before delving deep into logistics, a look at the current business scene will be great help. 4.6 Logistics Terms Logistics has evolved to a greater extent than ever thought possible and this has been attributed mainly due to the modern and advanced business enterprises, which have given the due attention towards its development. Logistics can be defined as delivering products at the right time, for a right price, at the right place and in the right condition. The role of a logistic manager and logistic executive is to handle the various tasks related to logistics and to assign responsibilities that pave the way for logistics to be recognized as an integral part of any organization. There are some terms which relate to the concept of Logistics and any aspirant who wants to have a deep insight into the overall procedure of logistics must be aware of these frequently used phrases.
14

Certificate of Origin: This refers to a certified document that is used in foreign commerce with regard to the origin of goods. This document certifies that the products which are ready to be exported have been manufactured in a specific geographical location and country. This certificate is sent to the importer by exporter of the product. This may be beneficial in claiming any concessions. This certificate needs to be signed by the exporter of the product and needs to be certified by the local chamber of commerce. Warehousing: This is the procedure of storing goods at a safe and clean place for the purpose of safeguarding the goods and may involve keeping goods to be sold at later stage. This can be described as a place or store where merchandise or products are kept. It is done for safe keeping of goods, usually for sale at a later time. Distribution: It refers to a process of the movement of people, services and resources to the place of their consumption or where they are required. This usually involves storage, transportation, issue and disposal of goods. Transportation: Refers to the movement of supplies, goods, people and equipment by any mode of transport such as rail, trolley, water or air. This is considered to be important aspect of any organization as timely delivery of products ensures customer satisfaction and brand name for organization. The mode of transportation may be dependent on several factors like customer requirements and specifications, past experiences, speed and geographical locations. Consignor: He is a person who makes the shipment of goods for the purpose of delivering the same by any mode of transport such as sea, trolley, land or air. Also known as shipper or sender. He is usually liable for hiring the transportation vehicle for the goods sent by shipment to be delivered to the consignee. In a transaction based on credit, he has the right to stop the goods in transit.

4.7 Marketing Logistics - Logistics

Logistic managers are given the task of marketing logistics as well as communicating logistics with a purpose of positioning logistics in the present competitive environment. The cut-throat competition so commonly associated with many current organizations has caused most businesses all over the world to remain proactive and any organization which ignores the importance of logistics has to blame itself. The entire purpose of logistics is defined when the logistics managers start to take marketing initiatives.

15

5.1 Scenario of Logistics in India

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

16

India is being treated as the destination of the future in the field of logistical service providers all over the globe. Indian logistical market players have started to gear up and position themselves in the global scenario. The true potential of these service providers is yet to be realized. India is keen to offer transportation and logistical service to grow itself as an emerging marketplace. The key sectors include fashion, gems, jewelry, pharmaceuticals, precision tools and engineering goods, all of which need special shipping provisions. In recognition of the growing need for technology-enabled solutions in logistics in India and abroad, many companies such as E-Logistics are taking shape. In fact, there are a dozen multinational logistics companies such as Excel, Bax Global and Menlo which have started operations in India during the last few years. Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people. The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like China and Korea. The largest Indian logistics service providers are Shipping Corporation of India, Container Corporation of India, Great Eastern Shipping, Reliance Ports/Terminals, Essar Shipping, Transport Corporation of India, Reliance Logistics, Blue Dart Express, Varun Shipping Company and BLR India. International service providers are Schenker, DHL, Arvato, Khne & Nagel and TNT .

5.2 About Logistics & Customer Service

Logistics contributes to an organizations success by providing customers with timely and accurate product delivery. The key question is who is the customer? For logistics, the customer is any delivery destination. Typical destination range from consumers homes to retail and wholesale businesses to the receiving docks of a firms manufacturing plants and warehouses. In some cases the customer is a different organization or individual who is taking ownership of the product or service being delivered. In many other situations the customer is different facility of the same firm or a business partner at some other location in the supply chain. Regardless of the motivation and delivery purpose, the customer being serviced is the focal point and driving force in establishing logistical performance requirements. It is important to fully understand customer service deliverables when establishing logistical strategies.

17

Whereas logistics is not capability that contributes to overall success, it is fundamental to servicing customers. In a typical marketing situation, the desired customer service performance changes over time. To plan marketing strategy in a dynamic will serve to illustrate how logistical customer service requirement related to a specific

product/segment situation will change over time. The product life cycle structure offers a useful framework for viewing the dynamics associated with customer service requirements planning. In terms of overall logistical performance, the basic customer service platform or program should be the level of support provided to all customers to trading conditions.

6.3 Models used for Effective Logistics practices

Hub and spoke method Use of information technology. 4th party logistics Cobbling of 2 or more destinations
Hub and spoke model:-The hub-and-spoke distribution

paradigm (or model or network)

is a system of connections arranged like a chariot wheel, in which all traffic moves along spokes connected to the hub at the center. The model is commonly used in industry, in particular transport, telecommunications and freight, as well as in distributed computing. For a network of n nodes, only n - 1 routes are necessary to connect all nodes; that is, the upper bound is n - 1, and the complexity is O(n). This compares favorably to

the

routes, or O(n2), that would be required to connect each node to every The small number of routes generally leads to

other node in a point-to-point network.

more efficient use of transportation resources. For example, aircraft are more likely to fly at full capacity, and can often fly routes more than once a day. Complicated operations, such as package sorting and accounting, can be carried out at the hub, rather than at every node. Spokes are simple, and new ones can be created easily. Customers may find the network more intuitive. Scheduling is convenient for them since there are few routes, with frequent service. The model is centralized; day-to-day operations may be relatively inflexible. Changes at the hub, or even in a single route, could have unexpected consequences throughout the network. It may be difficult or impossible to handle occasional periods of high demand between two spokes. Route scheduling is complicated for the network operator. Scarce resources must be used carefully to avoid starving the
18

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

19

Introduction of Reliance Polyester Business

Reliance Industries Limited, the largest private sector company in India and the second largest manufacturer of polyester in the world, set up an in-house research and development centre to achieve global leadership in polymer and fiber business, through innovative research and technology development in materials, processes, products and applications. Thus the Reliance Technology Center came into existence at Thane, in 1997. With a small team of 4 scientists and with chemical laboratory, analytical instrument and process engineering facilities, this centre has demonstrated a working model for carrying out business plan based on R&D with technological focus. Reliance is the world's largest fiber and yarn manufacturer. Over the years, Reliance has consolidated its position in the polyester business on the strength of its integrated operations, economies of scale and diversified product range. Reliance is today the country's largest manufacturer for Filament Yarn, Staple Fiber and PET with a market share of more than 50% in all these product categories. With its strong market presence and wide product portfolio, Reliance has always maintained a growth rate more than that of the industry. Reliance endeavors to make available many innovative trends and products from across the globe to Indian knitters, weavers and spinners to help them compete in the international market. Reliance is the largest producer of polyester fiber and yarn in the world, with a capacity of 2.5 million tonnes per annum. Reliance invests significant amounts on R&D in the polyester sector. Reliance Technology Center, Reliance Testing Centre and Reliance Fiber Application Centre constantly develop and introduce innovative products for the textile industry. Reliance enjoys a portfolio of about 120 global patents in the polyester domain. Reliance's philosophy of 'Growth is Life' has truly manifested itself in value creation opportunities for its myriad stakeholders, which include its valued customers. The focus on Growth has helped them to grow as one of the world's largest producers of polymers. The (2009-10) polymer production (Polypropylene, Polyethylene and Polyvinyl Chloride) is 4,091 kilo tonnes. This growth has been achieved with state-of-the-art world scale projects and setting global benchmarks in product quality, standards and services. Reliance's sites at Hazira, Vadodara, Gandhar in Gujarat , thane and Mouda in Maharashtra are integrated with crackers. The Jamnagar site is integrated with the world class refinery, ensuring feedstock security at all the sites. At Reliance their constant Endeavour is to provide products and services that meet global standards. Based on their extensive interaction with the industry, they offer a wide range of grades for diverse

20

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

21

RELIANCE INDUSTRY LIMITED NAGPUR MANUFACTURING LIMITED, MOUDA

22

Company profile
RELIANCE INDUSTRIES LTD( RIL) which is company of one of the most successful business tycoon of India Dhirubhai Ambani after which the property is distributed to Mr. MUKESH AMBANI (RIL) AND ANIL AMBANI (ADAG) Reliance Industries Ltd, Nagpur Manufacturing Division is a basically Polyester Filament Yarn manufacturing unit based on Technology from Uhde Inventa Fischer (Switzerland). It is situated at about 35 Km from Nagpur on Mumbai Kolkata National highway no. 6.

Vision

To establish a centre of excellence for Research & Development in PET homo and co-polymer fibers and resins through disciplined motivated and time bound execution of projects.

To closely interact with the business group companies and technical groups for short, medium and long-term quality and process issues.

To thrive to become a catalyst to the growth of company's polyester business. To leverage synergy between Reliance's PET, Polymers and Fiber intermediate businesses.

To create, maintain and pursue strategic research alliance for top end research activities.

Mission
Achieve 'Global leadership in Polymers, Fibers and Resin businesses' through innovative Research and Technology Development in materials, processes, products and applications through efficient, disciplined, target oriented and cost effective Research and Development activities.

Products
The products manufactured can be classified below Polyester Partially Oriented Yarn (POY) Fully Drawn Yarn (FDY) Dope Dyed Partially Oriented Yarn (DOY) Polyester Chips The manufacturing capacity is ~130 MT/day including all the above products.

23

Utilities for Manufacturing:

For manufacturing operations, following utilities are required. These are produced and distributed to the various users within the plant. Requirement of power is fulfilled by self (132 KW) power supply unit in the plant. They are: 1. Steam 2. Cooling water 3. Filter water 4. De-mineralized water 5. Chilled water 6. Nitrogen 7. Compressed air 8. Dowtherm Heating media

Objective of RIL Polyester unit to perform logistics.

The primary objective of RIL is to effectively and efficiently move the supply chain and provide quality product, so as to extend the desired level of customer service at the least cost. However, there are some definite objectives to be achieved through a proper logistics system by RIL. These can be described as follows: 1. Improving customer service. 2. Rapid Response. 3. Reduce total distribution costs 4. Creating time and place utilities. 5. Quality improvement.

Process of Logistics Made In RIL Polyester Unit

Logistics in RIL Polyester unit is the process of movement of goods across the supply chain of the company. This process is consisting of various functions, which have to be properly managed to bring effectiveness efficiency in the supply chain of organization. The major logistical function of RIL NMD, MOUDA are shown in figure 6.1

24

Figure 6.1 There are many cost areas in logistics and among them there are three major costs identified that are incurred in RIL NMD, MOUDA they are:1. Inventory cost: Inventory is technically an asset but indirectly taxing on the profitability of the firm. Inventory consists of the goods and materials that a retail business holds for sale or a manufacturer keeps in raw materials for production. Inventory control is a means for maintaining the right level of supply and reducing loss to goods or materials before they become a finished product or are sold to the consumer. Hence besides the various activities associated with the lean supply chain, corporations across the world are always finding different methods and techniques to reduce investments in the inventory. Inventory control is one of the greatest factors in a companys success or failure. This part of the supply chain has a great impact on the companys ability to manufacture goods for sale or to deliver customer satisfaction on orders of finished products. Proper inventory control will balance the customers need to secure products quickly with the business need to control warehousing costs. To manage inventory effectively, a business must have a firm understanding of demand, and cost of inventory. The costs related Inventory are carrying cost, damage cost , ordering cost , inventory cost, exchange rate differentials cost 2. Transportation cost: Transportation is the barometer that measures the economics, social and commercial progress of country. It is the most visible element of logistics operation. It has significant share in the overall logistics cost of the firm and needs great deal of planning to control it. In the movement of raw materials or products from the place of production to the place of consumption, transportation is the most important component of the logistical system. Transportation modes such as road, rail, inland water, sea, air, and ropeways play a major role in the cargo movement and trade development of a country. Transportation provides tremendous benefits, and various techniques can be used to
25

measure these benefits (Goodwin and Person, 1999). These are so large that it is difficult to calculate the total benefits of all transportation activities. Travel time is one of the largest transport costs, and travel time savings are often the greatest potential benefit of transport improvements. Various studies have calculated travel time values relative to wage rates based on traveler behavior, and several times value schedules have been developed based on such studies (Wardman 1998; Small, et al. 1999). 3. Warehouse cost: Warehouse acts as a supporting function for logistics and plays a key role in attaining the overall objectives of the logistical supply chain system. Warehouse can be a mother or distribution warehouse, depending on the inventories. Warehouse performance is judged by its productivity and its cost performance. Warehousing costs are levied by the warehouse owners and are an unavoidable expense for the companies that use the space. The owners should be conversant with the applicable charges.

EXISTING SUPPLY CHAIN PRACTICES IN RIL, NMD MOUDA

CUSTOMER (REGION)

DEALER (REGION)

REGIONAL OFFICE

SCM OFFICE (HOD MUMBAI)

PLANT

DISPATCH

MATERIAL

LOGISTICS

Figure: - 6.2 Order flow structure

26

In Reliance Industries Limited, Nagpur manufacturing division order flow as shown in figure 6.2 the order is interrelated with each other. From the figure 6.3 it is clear that there is proper coordination between customer and the manufacturer. Similarly the information flow which is the major driver of the supply chain management thus the order flow from regional customer to the plant and finally dispatch to the customer through logistics i.e. the material flow pallets of POY. Thus order flow as following regional customers approaches to the regional dealer in INDIA thus regional dealer take the order from the regional customer on every day regional dealer approaches to the regional office of the RIL .All the regional offices in India approaches to the head of the department (HOD) supply chain Mumbai and give the demand /order /information about current state of the orders .thus the main order come from the supply chain office Mumbai to plant i.e. manufacturing unit Nagpur manufacturing division. As per the order comes from customer polyester yarn dispatch to the customer by fast delivery as well by the normal delivery. Figure 6.3 shows the dispatching cycle of the Reliance Nagpur manufacturing division in which inbound logistics practices takes place. It is the systematic process from truck parking note to the main gate exit. Thus YTTS (yarn to transport service ) cycle for dispatching is basically the process of inbound logistics practices first the truck come in parking then link with sap then fulfill order as per dispatch order weighing is done . Material pick up from warehouse invoice and exit.

27

YTTS CYCLE FOR DISPATCHING TPN (Truck to parking) note) TOL (Truck to order link)

WBN (Weight Bridge note)

MPN (Material pick up note)

INV, LR, PL,

forms 38

WBX (Weight Bridge exit)

MAX (Main gate exit)

Figure:-6.3 YTTS cycle for dispatching in RIL, NMD

28

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

29

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

The following additional documents are prepared for export menu of SAP-WM module and handed over to the transporter

30

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

31

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

32

3) Contract Supervisor Verification of the healthiness of high reach /rangers through checklist Schedule preventing & breakdown maintenance of all the vehicles Providing all the necessary people to their workplace Submit the list of employee to the time officer Provide ID card to all the employee Safety training to all the employee

Transport Agents Used For the Better Logistic Practices in RIL Polyester Nagpur Manufacturing Unit For Domestic Market 1. Jaswant Sons 2. PRC Logistics 3. Ankita Logistic 4. PNR Logistic 5. BAL Roadlines 6. Rapid Transport Agency 7. Simrans Transport Agency For International Market 1. Shipping Company 2. Road lines Transport 3. Seeking Transportation

Customers of RIL NMD, Mouda

The list customer are categorized as followsMajor customers 1. Balaji Filament Ltd. (Daman) 2. Kandoi Polytex Pvt. Ltd. (Daman) 3. Pioneer Flexo Pack Pvt. Ltd. (Dadragadh) 4. Reliance Industries Ltd. (Silvassa) 5. Reliance Industries Ltd. (Niyol) 6. Reliance Industries Ltd.(Salen) 7. Sunita Tex Spin Pvt. Ltd. (Surangi)

33

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

34

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

Secondary Data

Internal Data

External Data

Various internal reports of the firm.

Indexes, Commercial sources etc.

35

Secondary data is that data which is collected for some earlier research work and are applicable in the study the research has presently undertaken. Secondary data is being collected from the records and reports of the company. Depending upon the gathering sources, secondary data can be divided into two categoriesi. Internal data: Internal data is procured by the research in normal operations within its own premises. ii. Companys website Company catalogue.

External data: External data are generated and collected from variety of events and sources outside the firms premises. Business magazines Journals Various books Various websites

C) Sample Design A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well as lay down the number of items to be included in the sample.. Certain steps are to be taken into concern for selecting sample, they are:- Type of universe, sampling unit, source list, size of sample, parameters of interest, Budgetary constraint, sampling procedure Sample size: 5 employees of the company Sample Technique: convenience sampling. D) The tools that are used in collecting data are

References Individual meetings. Individual interviews

36

Analysis of data
RIL NMD, MOUDA combines people, technology and quality of product to optimize cost and service. Their transportation management service combines sophisticated information technology with human resources to improve the inbound and outbound transportation processes of their customers. Their service simplifies carrier selection, improves logistics management, and offers cost savings opportunities. They streamline transportation management by providing a single point of contact for all of a customer's shipment and delivery needs. A team of dedicated coordinators is assigned to each account. Clients order service via electronic data interchange, the Internet, phone, or fax. They identify the carrier that will provide the lowest cost and best service for a customer's shipment. Then, a coordinator alerts the selected carrier and dispatches a vehicle. The result is a simplified, cost-effective process for managing transportation and inventory carrying costs. Here's what company can expect from their transportation management service:

Transportation Savings. As a result of their carrier network and superior technology, they offer transportation savings opportunities to their customers.

Discipline & Control. They identify delivery dates; then, they determine the right mode of transportation for each shipment. In addition, they audit carrier compliance to their customers' specifications.

Convenience. They audit your freight bills and allocate charges to the appropriate accounting code within your organization. In addition, they offer the opportunity to reduce administration costs through electronic, paperless invoices.

Information. They capture complete data about your company's shipments and provide useful management reports to further improve your transportation process. Integrated Logistics Increase inventory visibility and velocity with integrated logistics. They combine knowledge and technology to integrate transportation management service with:

order management fulfillment kitting and parts sequencing supply chain consulting and design

37

Interpretation of data using SWOT ANALYSIS

SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths, Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late 1960's by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D. Guth in Business Policy, Text and Cases (Homewood, IL: Irwin, 1969).

STRENGTH

WEAKNESS

1. Strong Management Team. 2. Good in strategy formulation

1. Less support from HR dept.. and 2. Less qualified employees. 3. No more parking facility in premises. 4. Contract basis labors appointed. 5. Less skilled workers.

execution. 3. Well established warehouse. 4. Low cost leader. 5. Excellent utilization of IT. 6. Good quality product.

OPPORTUNITIES

THREATS

1. Possible customer.

tie-ups

with

more

reputed

1. Small plant size.. 2. Demand variability is high. 3. Low communication. 4. Human resource limitation

2. Should invest in other product line also. 3. Make collaboration with local companies. 4. Look for creativity and innovation in the business.

38

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

39

6. Safety and security is of high edge Security and safety department of the RIL NMD is one of the successful key factors of the firm. They also have a medical facility in the premises and also follow all the environment friendly guidelines.

Weaknesses 1. Less support from HR dept. The HR department of RIL NMD, Mouda assume themselves as a powerful one than the other departments. It is due to this behavior that some of the senior officers switch to other firms of same business. For example warehouse in charge of RIL Mr. Joshi, from Warehouse Department, switched over to Indorama Inc. 2. Less qualified employees. The permanent employees working in reliance are 200 only and rest of the workers are working on contract basis .So there is lack of qualified and experienced employees at present in the RIL NMD 3. No more parking facility in premises. 40-50 truck parking facility is available .It is insufficient and therefore creates problem during parking of vehicle. 4. Dependency on the supplier It is also one of the weaknesses of the firm that it is totally dependent on the supplier for the procurement of the raw material (PTA & MEG). 5. Not automated Automation in the firm will reduces the cost of inventory, packaging, and the labor work .as the firm is not automated so that cost is increased on inventory, packaging and labor. Opportunities 1. Possible tie-ups with more reputed customer. They have a opportunity to tie-up with the large leading firm in textiles business other than domestic firms. 2. Should invest in other product line also. As polyester chips are also used in various products manufacturing so there is opportunity to expand the business in the other product line. 3. Creativity and innovation in the business. To became a business strengthen there is the need of creative and innovative ideas in automation.
40

4. RIL fresh farming They are also generating the revenue from fresh farming of RIL but now it is a small scale business and sale only inside the firm, they can increase their sale by selling outside the firm.

Threats 1. Small plant size RIL NMD has a small plant size with limited production capacity other than their competitors difficult to match the operational cost of bigger units like Hazira complex. 2. Demand variability is high. In this type of the product demand fluctuation is occurs which depend on the various type of the parameter so that demand variability is high. 3. Low communication. Communication play a vital role in the success of the any business organization sometimes which is good of the other competitor if communication is low between the department it creates a problem in various activity of business processes. 4. Human resource limitation As the site being small, dedicated expert cannot be hired for every function requirement. The pace of some organizational function may not keep up with current requirement.

41

Limitations and Future scope of Project

42

Limitation of project
The proposed suggestions and recommendations are limited to RIL NMD only. The study is based on the secondary data published in newspapers, books and journals of the authors. The time & cost plays an important role when one goes for a particular study. Due to the time & cost constrains the large sample is not taken. Due to sensitivity nature of information, data collection is not vast and comprehensive.

Future scope of project research: Casual Research can be further carried out on this topic. Research work on the implementation of Hub and Spokes and Cobbling models in the company can be carried out.

43

Problems and related suggestions 1) No. of vehicles are less

Vehicles available with company are not enough for the various activities so that Company has to increase the number of vehicles owned by them at least to handle their local transport.

2) Increase in transportation and warehouse cost

As the 3rd party logistics is working, so that Transportation cost and Warehouse cost in this study has emerged as the major costs to have major effect on the profit generation. Hence, Company must take appropriate steps in order to reduce these costs.

3) Less awareness of logistics model

Overall logistics function is done under the direction of Mumbai headquarter but for the proper functioning of logistics operation they should not ignore the development in the field of SCM and Logistics and should update themselves with the new technologies that are emerging globally.

4) Safety and security

There should be necessity of CCTV cameras to inspect all the operations and processes for the safety and security of an organization.

5) Use of new technology

Also there is necessity of AUTOMATION in Warehouse like WMS (warehouse management system) & PLC (programmable logical control).

6) Skilled workers
There must be reshuffle in departments of employees to gain the different working knowledge of the firm and improving skilled of labour.

44

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

45

Bibliography

46

Bibliography Books
Ailawadi Satish C and Singh Rakesh Logistics Management Prentice Hall of Indian logistics. 4th print 2008. Bowersox Donald J. And Closs David J Logistics Management Tata McGraw- Hill. 6th print 2003. Page no 66-80. C. R. Kothari, Research Methodology, New Age Publicatio 2nd Edition 2005. Sople Vinod V. Logistics Management Pearson Publication, 4th Impression 2007. Satish C. Ailawadi and Rakesh Singh, Logistics Management Prentice Hall of India pvt. Limited, 4th printing 2008

Journal
M. E. O'Kelly(1999), Hub and Spoke Networks in Air Transportation: an Analytical Review, Journal of Regional Science, Vol. 39(2), 275-295. Lamber , Emmelhainz, and Gardner, (1999), Building successful partnerships, Journal of Business Logistics, Vol. 21 No. 1, pp. 165-81. Maloni and Benton (2000) Third-Party Logistics: some user versus provider perspectives, Journal of Business Logistics, Vol.21, No.1, pp.121-133. Lapide, L. (2000), True measures of supply chain performance, Supply Chain Management Review, Vol. 4 No. 3, pp. 25-8. Ireland, R. and Bruce, R. (2000), CPFR only the beginning of collaboration, Supply Chain Management Review, Vol. 4 No. 4, pp. 80-8. Tasaka, Hiroshi (2001), Twenty-first-century Management and the Complexity Paradigm, . Journal of Business Logistics, Vol.25, No.1, pp.121-133. Handfield, and J. Ernest L. Nichols (2002) Supply Chain Management: An Evolutionary View. Harvard Business Review, p.105-116. Simatupang, and Sridharan, R. (2002), The collaborative supply chain, International Journal of Logistics Management, Vol. 13 No. 1, pp. 15-30. Mc Gavin, Ward, and Schwarz, L.B (2003). `` Benefits of supply chain partnerships with information sharing in supply chains'', Sloan Management Review, Vol. 38, pp. 93-102. Steermann, H (2003) A practical look at CPFR: the Sears - Michelin experience. Supply Chain Management Review, July/ august 2003, pp. 46-53.

47

Websites
http://www.scribd.com, on 12th and 20th Jan. 2011 and on 5th,6th and 7th Feb 2011. http://wikipedia.org/wiki/Logistics 0n 18th Feb. 2011 http://wikipedia.org/wiki/Spoke-hub_distribution_paradigm on 3rd march 2011. http://www.relianceloisticslimited.com on 20th Feb and 28th Feb.2011 http://www.going-global.com/articles/logisticsvital_to_every_business.htm on 6th march 2011.

48

Annexure

49

Question related to logistic practices in RIL NMD,MOUDA Q. 1 can you please elaborate YTTS cycle of warehouse? YTTS (Truck tracking System) TPN- Truck parking note i.e. entrance of truck in Plant parking will generate a identification no for future reference while called at Warehouse for Loading. Called truck reporting number. TOL- Orders Linking with the truck reporting number in system. WBN- Empty truck weighment. MPN- Material Pick-up note i.e. Selection of material for loading in truck as per order. INV- Invoice generation after confirmation of physically material loading in truck as per MPN. WBX- Gross weight of Truck for matching with tare wt & material wt. to cross check with Invoice value. MGX Main gate exit after all confirmation from Factory.

Q .2 how logistic process done in RIL and if any structure follow in RIL NMD,MOUDA? Logistic Controlled in RIL From HO Mumbai , a separate logistics team arranges the trucks at required Location through out the country as per Business requirement for Solid, liquid Product movement. Business Supply chain Manager interacts with Logistics team for their various requirements as per Plan.

Q .3 what is the role of logistics in manufacturing firm like RIL NMD? Logistics Division mainly controlled from Mumbai. All RAW Material ,Packing material, finished product Dispatch , export container Tracking & follow-up with Vendors in consultation with (H.O) team carried out by local logistics at NMD.

Q .4 what type of logistics model use in RIL NMD,MOUDA? It is reverse Logistics Model used at NMD. i.e. Truck reaches to plant carrying the Raw Material used in polyester manufacture & Packing material from Market , same trucks after unloading at NMD carries the Finished products to Silvassa/ Surat area Customers. If shortage of Truck of trucks for POY dispatch then arranged from local Market. 99% Side open truck only used for finished product movement.

50

Q.5 How to manage the inventory? Day to day inventory reports is prepared at the start of day. Age-wise inventory is analyzed at the end of month & the report is sent to Head Office for liquidating any material which is more than 30 days old. Feedback regarding the inventory rise up or decline is given to Production Planning department for necessary product changes in production to maintain the inventory under control. Regular follow up is done for continuous moving of material to market in case any of the material is stuck up.

Q.6 What are the strategies used by RLL for supply chain management for RIL unit? RLL places the trucks required for movement of incoming & out going materials. The finished product if dispatched to market in the trucks which are coming with raw material thereby saving the freight. The trucks are placed depending upon the order quantity there by using the fullest capacity of truck. Clubbing of orders of different customers in the same region is also done to utilize the 100% efficiency of truck.

Q.7 What are the drivers of supply chain management? The main functions of Supply Chain Management are uninterrupted supply of material to the customers. This includes central front end marketing, supply chain management team, regional offices, dealers, FDCs and Plant warehouses.

Q.8 What are the strategies adopted by RIL, WH department for improving the organizational competitive position? Reliance is committed to meeting customer requirements through continual improvement of its quality management systems. Reliance shall sustain organizational excellence through visionary leadership and innovative efforts. To improve organizational competitiveness, the main thrust is to be given on customers delight includes timely & quantitatively delivery of product to the customer.

Q.9 How will you rectify your customer? Reliance Industries Limited has a system to capture data on Customer satisfaction/ dissatisfaction levels. On-line Customer complaints, Product performance Report and Trial feedback are available through WAN/e-mail.

51

Q.10 What are the basic logistic activities done in the firm? All the processing of the RIL NMD is done by using the SAP software Order processing Inventory management warehouse Transportation Material handling and storage Packaging Information flow

Q.11 What type of major cost to be incurred while doing the logistic activity in the firm? Three major costs identified that are incurred in RIL NMD, MOUDA they are:1. Inventory cost 2. Transportation cost 3. Warehouse cost

52