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CONTENTS

SL. NO

PARTICUALARS

PAGE .NO

1

EXECUTIVE SUMMARY

1-2

2

INTRODUCTION TO THE STUDY

3-9

3

INDUSTRY OVERVIEW

10-31

4

ORGANIZATION PROFILE

32-44

5

OBJECTIVES OF THE STUDY

45

6

METHODOLOGY

46

7

ANALYSIS OF THE STUDY

47-68

8

FINDINGS FOR SERVICE PROVIDERS

69

9

SUGGESTIONS FOR SERVICE PROVIDERS

70

10

FINDINGS FOR CUSTOMER

71

11

SUGGESTIONS FOR CUSTOMER

72

ANNEXURE:12

73-78 QUESTIONNAIRE

13

CODE SHEET

79-80

14

BIBILOGRAPHY

81


A study on modern warehousing practices

EXECUTIVE SUMMARY A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parts of towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets. Warehouse can play a key role in the integrated logistics strategy and its building and maintaining good relationships between supply chain partners. Warehousing affects customer service stock-out rates and firm’s sales and marketing success. A warehouse smoothens out market supply and demand fluctuations. When supply exceeds demand, demand warehouse stores products in anticipation of customer’s requirements when Demand exceeds supply the warehouse can speed product movement to the customer by performing additional services like marking prices, packaging products or final assembling etc. Expeditor’s international India pvt ltd is a global logistics company which was established in the year 1979 by Peter.J.Rose and his partners in Washington. Expeditors are much more than getting a piece of freight from one point to another. The Council of Logistics Management defines logistics as that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements. Expeditor’s job is to make sure that from raw material to finished goods sitting on the retail shelf, they provide the critical services and information necessary to give their clients a competitive advantage in the management of their supply chains. The project was undertaken in Bangalore city. The study was made to know”Modern Warehousing Practices used in India”.

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A study on modern warehousing practices

As in depth study was made to know the modern warehousing practices adopted by the warehouse service providers. The study contains the profile of the company, organization chart and services offered by the company etc. The information was collected through company guide & other related materials like company prospects, company website etc. The main objective of study was to know the modern warehousing practices and modern equipments used in the warehouse operations. Method of collecting primary data was through questionnaire and personnel interview and secondary data has been collected through Internet, observation, company manual etc. For the purpose of study both service providers and customers of manufacturing companies have been chosen as a sample size of 50 through convenient random sampling. Data collected was tabulated and simple percentage method was used to derive conclusion. Depending on this I have made my own suggestions & given my own idea to improve the warehouse operations. •

Majority of the customers require that there should be easy accessibility of goods in the warehouse.

•

Majority of customers require transportation service in the warehouse

•

Majority of respondents require material handling equipments in the warehouse.

As many of the customers require easy accessibility of goods in the warehouse, a proper warehouse management service should be adopted so that customers can know the location of their products. As far as the service providers are concern they hire transporters to transport their products, as a result the customers are facing the problem of delivery. So when the service providers have their own transport facility they can deliver the goods on time. Hence service providers should have their own transportation facility. Since majority of customers require material handling equipments in the warehouse it is very necessary to implement it. Because of some materials are heavy it is very difficult to move hence material handling equipments like fork lifters are used, as a result the warehousing operations can be done quickly. Hence the warehouses should have these material handling equipments.

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A study on modern warehousing practices

INTRODUCTION TO STUDY DEFINITION A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parts of towns. They come equipped with loading docks to load and unload trucks; or sometimes are loaded directly from railways, airports, or seaports. They also often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets. MODERN WAREHOUSING However, the actual meaning of modern warehousing and storage can be defined as a current task that has soften the over acceptance of logistics. Theoretically, it is the consideration to make perfect logistics and its associated elements. With respect to development, modern warehousing and storage can show the real way for many middle and little storage organizations. It can assist the supply chain to operate smoothly and can stores materials at times. INTRODUCTION Warehouse can play a key role in the integrated logistics strategy and its building and maintaining good relationships between supply chain partners. Warehousing affects customer service stock-out rates and firm’s sales and marketing success. A warehouse smoothens out market supply and demand fluctuations. FUNCTIONS OF WAREHOUSES Warehouses are basically intermediate storage points in the logistics system where raw material, work in process, finished goods and good in transit are held for varying duration of times for a variety of purposes. The warehousing functionality today is much more than the traditional function of storage. The following are Main function that warehousing serves today:

1. Consolidation

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A study on modern warehousing practices

This helps to provide for the customer requirement of a combination of products from different supply or manufacturing sources. Instead of transporting the products as small

shipments from different sources, it would be more economical to have a consolidation warehouse. This warehouse will receive these products from various sources and consolidate these into shipments, which are economical for transportation or as required by the customers. 2. Break Bulk As the name suggests, the warehouse in this case serves the purpose of receiving bulk shipments through economical long distance transportation and breaking of these into small shipments for local delivery. This enables small shipments in place of long distance small shipments. 3. Cross Docking This type of facility enables receipt of full shipments from a number of suppliers, generally manufacturers, and direct distribution to different customers without storage. As soon as the shipments are received, these are allocated to the respective customers and are moved across to the vehicle for the onwards shipments to the respective customers at these facilities. Smaller shipments accompanying these full shipments are moved to the temporary storage in these facilities awaiting shipments to the respective customers along with other full shipments. 4. Product Mixing Products of different types are received from different manufacturing plant or sources in full shipment sizes. These products are mixed at these warehouses into right combination for the relevant customers as per their warehouses and continuously provided for the product mixture shipments requiring these. 5. Stock Piling This function of warehousing is related to seasonal manufacturing or demand. In the case of seasonal manufacturing, certain raw materials are available during short periods of the year. Hence, manufacturing is possible only during these periods of availability, while the demand is full year around. This requires stockpiling of the products manufactured from these raw materials. An example is mango pulp processing. On the other hand, certain products like woolens are required seasonally, but are produced throughout the year, and thus need to be stockpiled as such. Babasabpatilfreepptmba.com

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A study on modern warehousing practices

6. Postponement This Functionality of warehousing enables postponement of commitment of products to customer until orders are received from them. This is utilized by manufacturers or distributors for storing products ready up to packaging stage. These products are packaged and labeled for the particular only on receipt of the order. 7. Positioning This permits positioning products or materials at strategic warehouses near to the customers. These items are stored at the warehouse until ordered by the customers when these can be provided to the customers in the shortest lead-time. This function of warehousing is utilized for higher service levels to customers for critical items and during increased marketing activists and promotions. 8. Assortment Assortment warehouse store a variety of products for satisfying the variety requirements of customers. For example, retailers may demand different brands of the same product in small quantities rather than larger quantities of the single brand. 9. Decoupling During manufacturing, operation lead-times may differ in order to enable production economies. Thus, the batch size and the lead-time of production may differ in consecutive operations. This decoupling of operations requires intermediate storage of materials required for the subsequent operation. 10. Safety Stocking In order to cater to contingencies like stock outs, transportation delays, receipt of defective or damaged goods, and strikes, safety stocks have to be maintained. This ensures that, on the inbound site production stoppages do not occur, and, on the outbound side customers are fulfilled on time. Modern warehousing Trends Traditional warehousing has declined since the last decades of the 20th century, with the gradual introduction of Just in Time (JIT) techniques. The JIT system promotes product delivery directly from suppliers to consumer without the use of warehouses. However, with

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A study on modern warehousing practices

the gradual implementation of offshore outsourcing and off shoring in about the same time period, the distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products. Recent retailing trends have led to the development of warehouse-style retail stores. These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional retail shelving. Typically, items ready for sale are on the bottom of the racks, and crated or palletized inventory is in the upper rack. Essentially, the same building serves as both warehouse and retail store. Large exporters/manufacturers use warehouses as distribution points for developing retail outlets in a particular region or country. This concept reduces end cost to the consumer and enhances the production sale ratio. Pick and Pack: Pick and pack is a part of a complete supply chain management focused on the needs of small retailers. It entails processing small to large quantities of product, often truck or train loads and disassembling them, picking the relevant product for each destination and repackaging with shipping label affixed and invoice included. Usual service includes obtaining a fair rate of shipping from common as well as expediting truck carriers. Warehouse management system: A warehouse management system, or WMS, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. The systems also direct and optimize stock put away based on real-time information about the status of bin utilization.

Radio-frequency identification: Radio-frequency identification (RFID) is the use of an object (typically referred to as an RFID tag) applied to or incorporated into product, animal, or person for the purpose of identification and tracking using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader. Most RFID tags contain at least two parts. One is an integrated circuit for storing and processing information, modulating and demodula Babasabpatilfreepptmba.com

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A study on modern warehousing practices

ting a radio-frequency (RF) signal, and other specialized functions. The second is an antenna for receiving and transmitting the signal.

There are generally three types of RFID tags: active RFID tags, which contain a battery and can transmit signals autonomously, passive RFID tags, which have no battery and require an external source to provoke signal transmission and battery assisted passive (BAP) which require an external source to wake up but have significant higher forward link capability providing great read range. Today, RFID is used in enterprise supply chain management to improve the efficiency of inventory tracking and management. The world's first RFID business incubator is currently located in Dayton, Ohio. Kiva Systems: Kiva

Systems is

a

company

that

use robots for warehouse automation.

Its

makes

order

material

fulfillment

handling

systems

systems

are

that used

by Staples, Walgreens, Zappos, and Gap, among others. Overview: Traditionally, goods are moved around a distribution center using conveyors, or by human operators with tow racks or forklifts. In Kiva's approach, goods are kept on portable storage units. When an order for an item arrives, it is transmitted wirelessly to a robotic platform, which navigates the warehouse to find the storage unit containing the requested items, lifts the unit up by sliding under it, and brings it to a human worker at a work station. The worker picks the items needed to fill orders, while the robot returns the storage unit to the warehouse. This turns out to be much more efficient and accurate than having human operators traveling around the warehouse locating and picking items.[2] A Kiva robot is typically orange in color, 2 feet by 2.5 feet, and one foot high. Each robot weights around 250 pounds, and can carry four times its weight. The robots navigate around the warehouse using an onboard camera to read barcode stickers on the warehouse floor. They communicate wirelessly to computer servers that run order-processing software and deliver directions.[3] Kiva's relatively new approach to automated material handling systems for order fulfillment is gaining traction in ecommerce fulfillment, retail restocking, parts distribution and medical device distribution operations. Voice directed warehousing: Babasabpatilfreepptmba.com

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A study on modern warehousing practices

How it works Each operator is given a voice-enabled RF device. These devices need not have screens or keypads – operators communicate with the system via headset. Managers use the Warehouse Management System (WMS) or middleware to assign operators work – jobs such as picking, put-away, replenishment, and truck loading. How this assignment process takes place is largely implementation specific. For example, operators might be assigned to pick specific orders or load specific trucks - or they might simply be assigned to picking, and be automatically placed on the highest-priority job. Picking: With voice picking, the voice system directs the operator to perform each pick, giving them directions to the pick location. Depending on system configuration, the operator may be prompted for a location check-digit or a container check-digit as well as a count-back. Following is an example picking dialog. Put away: In voice directed put-away, the system asks the operator for the license(s) that they will be putting away. The system then directs the operator to put away each license, requesting a location check-digit from the put-away location. Some systems can also take advantage of quicker multi-pallet walkies by performing twophase putaway. Walkie operators are directed to take received pallets to the appropriate aisle where reach operators pick them up and complete the operation. Replenishment: In voice directed replenishment, the system directs the operator to pick up a particular skid from a particular location, and then directs them to the appropriate picking location. The WMS coordinates which pallets are scheduled for replenishment, and where they are to be put – a sophisticated WMS may assign SKUs to pickfaces dynamically according to SKU velocity, available space, proximity to door, etc Truck loading: With voice directed truck loading, the voice system directs the operator to each picked pallet in the proper sequence. In full-pallet DCs, operators may be directed to take entire pallets from the racking directly to the truck. Voice-directed truck-loading can help ensure that trucks are loaded in the correct sequence and that all pallets make it onto the truck.

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A study on modern warehousing practices

INDUSTRY PROFILE Logistics can be defined as providing the right type of products and/or services at the right price, at place, time and in the right condition. A quick look back at some logistics history may prove very enlightening. 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. The birth of Logistics can be traced back to ancient war times of Greek and Roman empires when military officers titled as 'Logistikas' were assigned the duties of providing services related to supply and distribution of resources. This was done to enable the soldiers to move from their base position to a new forward position efficiently, which could be a crucial factor Babasabpatilfreepptmba.com

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A study on modern warehousing practices

in determining the outcome of wars. This also involved inflicting damage to the supply locations of the enemy and safeguarding one's own supply locations. Thus, this lead to the development of a system which can be related to the current day system of logistics management. During the Second World War (1939-1945), logistics evolved greatly. The army logistics of United States and counterparts proved to be more than the German army could handle. The supply locations of German armed forces were inflicted with serious damages and Germany was not able to wreak the same havoc on its enemy. The United States military ensured that the services and supplies were provided at the right time and at the right place. It also tried to provide these services when and wherever required, in the most optimal and economical manner. The best available options to do the task were developed. This also gave birth to several military logistics techniques which are still in use, albeit in a more advanced form. Logistics has now evolved itself as an art and science. However, it cannot be termed as an exact science. Logistics does not follow a defined set of tables nor is it based on skills inherited from birth. A logistics manager performs his duties and responsibilities based on his educational experiences, skills, past experiences and intuition. These skills are nourished by a constant application of the same by him for the betterment of his organization. The logistics manager ensures that the company is benefited by an effective and efficient system of logistical management. He also needs to ensure that the right kind of products and services are provided at the right time and for a right price, whether inside the organization's premises or delivery of shipments outside the premises of the organization. Logistics has come to be a kind of relief for many organizations that formerly looked upon it as a burden. Companies nowadays are hiring people with the requisite knowledge to deliver sustainable enhancements in the field of supply chain management. As has been the case throughout most of logistics history, the task of a logistics manager involves a clear vision and a drive within to deliver results under strict deadlines in addition to his usual responsibilities. 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,

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A study on modern warehousing practices

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. There are several events organized for the promotion of logistics in India which are focused in their approach and relevant to the business solutions besides providing a solid platform for allowing people from a wide industry spectrum to meet and provide business within themselves from all over the country. This has been an emphatic source of providing business solutions and their development. Several global third party logistics providers (3PLs) have already started developing their operations and service networks in India with a purpose to explore the rampant Indian economy. 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. 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

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A study on modern warehousing practices

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. Logistics Management and Logistics Management Software Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. A professional working in the field of logistics management is called a logistician. Software is used for automating logistics activities which helps the supply chain industry in automating the work flow as well as management of the system. Very few generalized software are only available in the new market in the said topology. This is because there is no common rule to generalize the system as well as work flow even though the practice is more or less the same. Most of the commercial companies do use one or the other custom solution. There are various software that are being used within the departments of logistics.

The software’s that are used in these departments are, Conventional Department: CVT software / CTMS software Container Trucking: CTMS software A. Business Logistics Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies. In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point

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A study on modern warehousing practices

of consumption. The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine the professional knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project. B Production Logistics The term is used for describing logistic processes within an industry. 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 eliminate 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. Production logistics is getting more and more important with the decreasing batch sizes. Even a single customer demand can be fulfilled in an efficient way. Track and tracing, which is an essential part of production logistics - due to product safety and product reliability issues - is also gaining importance especially in the automotive and the medical industry. Features of Indian Logistics Industry •A number of small-integrated players. •Transportation costs account for nearly 40% of production costs. •Logistics costs around 13% of GDP, compared to 8% in the US. •Growth in Indian economy is the major driving factor for the demand in logistics industry. •Chemicals, metals, FMCG, cement and textiles have been identified as the top five contributors to logistics revenues. The below figure shows activities of logistics

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A study on modern warehousing practices

Transportation warehousing Inventory carrying Order processing Administration

. The figure shows the comparative logistics costs of India, China, US, Europe, Japan.

Comparitive logistics Cost 18 16 14 12 10 8 6 4 2 0

17

11.5 8.7

10

11.07 Comparitive logistics Cost

India

China

US

Europe

Japan

Growth Drivers for Logistics in India ď ś General growth of the Indian economy. ď ś Manufacturing boom-for exports as well as for domestic market.

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A study on modern warehousing practices

 Expected rise in International trade from India.  MNC’s setting up manufacturing in India-Nokia, Flextronics.  Government’s thrust on Infrastructure --US$17 billion to upgrade highway networks.  Implementation of VAT will lead to growth in warehousing business.  Opening of organized retail sector -attracting retail chains like Wal-Mart and Carrefour in to Indian players like Pantaloon and Reliance. Government Support The Indian government is making great efforts by  Privatizing ports and airports.  Increasing the number of gateway ports  Investing in highway projects  Streamlining customs and excise procedures  Implementing EDI systems  Improving the rail network

.

 The government plans to invest $17 billion in  Transport infrastructure between 2006-2010. Some of the projects are •Amend in the National Highway Act to expedite land acquisition, permit private financing and allow tolling. •Improvement in rural access by launch of the Prime Minister’s Rural Roads Program. •

Reduction of congestion on rail corridors and improvement of port connectivity by launch of National Railway Development Program.

Up gradation of infrastructure and connectivity in the countries twelve major ports by initiating the National Maritime Development Program.

Establishment of Tariff Authority for Major Ports to regulate tariffs.

On a per-annum basis, United States invests 5 percent of its annual logistics spend on infrastructure, India is investing 23 percent or over four times as much. Industry Growth=Logistics Growth •“Engineering goods, chemicals and gems & jewelry are the fastest-growing sectors; manufacturing in India is expected to grow by 9.4 percent in coming

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A study on modern warehousing practices

years.” says Jacques Green, Managing Director FedEx-India, Middle East &Africa. Auto •Outsourcing in Auto sector could be worth $375 billion by 2015 and India could

capture up to $25 billion of this amount. [Source: McKinsey]

Chemicals •India’s chemical exports could reach $15 billion by 2015. [Source: McKinsey]. Electrical and Electronic Products •India’s export in electrical and electronic products could reachup to $18 billion a year by 2015. [Source: McKinsey]. Retail •Opening up of the organized retail sector is attracting big retail chains like Wal-Mart and Carrefour in addition to big Indian retailers like Pantaloon and Reliance. •All this would require the presence of professional logistics players in the market to carry out supply chain activities. Thus demand for logistics services would be largely driven by the growth of the Indian economy. Logistics is a mixture of several professional disciplines, such as: 1. Planning 2. Controlling 3. Directing 4. Coordination 5. Forecasting 6. Warehousing and transportation 7. Facility location 8. Inventory management All activities that are involved in the movement of goods and services from the point of origin to The point of final consumption is grouped under the term 'logistics'. The art of managing or Supervising all these activities when grouped together as a collective unit, are placed under 'logistics management'. People who are authorized or given the task of managing the aspect of logistics management are referred to as 'distribution managers' or 'logistics managers'. Babasabpatilfreepptmba.com

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A study on modern warehousing practices

IMPORTANCE OF LOGISTICS 1. Logistics is the bed rock of trade and business. Without selling and or buying there can be no trade and business. Buying and or selling takes place only when goods are physically moved into and or away from the market. Take away logistical support trade and business will collapse 2. Leads to customer satisfaction through superior customer service. Organizational objectives of P [Productivity],Q [Quality],C [Cost],D [Delivery],E [Employee Morale],F [Flexibility],S [Safety],H [Health],E [Environment] are set to meet customer expectations of Q,C,D. Q, C, S, H, E are parts of must be quality that a customer expects. Logistics addresses D, F objectives which lead to customer satisfaction through superior customer service

3.Integrates logistical activities In conventional management environment, various activities of logistics work in isolation under different management functions. Each pocket trying to sub optimize its objectives at the cost of overall organizational objectives. Purchasing trying to purchase at minimum price at the cost of what is needed by operations. Operations produce large quantities at minimum production cost ignoring demand leading to doom inventory. Logistics function of management brings all such functions under one umbrella pulling down inter departmental barriers.

4.Competitive edge: In the fiercely competitive environment logistics provides the edge. Due to technological revolution most of the products are moving into commodity markets. In a commodity market where price is controlled by competition, where there is no product differentiation in terms of quality parameters like performance & reliability, where brands are almost irrelevant, competitive edge is that of availability of product and service in terms of time, place and quantity. 5.Logistics wins or loses wars •

British lost American war of independence due to poor logistics

•

Rommel was beaten in the desert by superior logistics of Allies

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A study on modern warehousing practices

6.Supports critical functions like operations and marketing Strong logistics support enables a company to move towards JUST IN TIME production system for survival in a highly competitive market a) Interface with marketing These days marketing a product is increasingly on the strength of availability and flexibility as we discussed earlier. Stronger emphasis is on the last of four Ps of marketing [product, price, promotion and place]. Logistics provides the interface between production function and marketing function. Marketing is trying to sell the product in the market place. Logistics makes the product accessible to marketing by acting as interface between the function that produces it and the function that makes the consumer buy it. This interface is gaining importance due to following changes that are sweeping the market making many companies adopt JUST IN TIME production system. a. Change in the customer: demanding, knowledgeable, conscious of rights, lacking in brand loyalty, changes preferences very fast, expects very high degree of service b. Many products are moving towards commodities market: product differentiation in terms of quality of performance is vanishing and brands are losing their magic. As a result of above we find that availability is an important determinant of purchasing decision. 7. Logistical costs: For individual businesses logistics expenditures are 5% to 35% of sales depending on type of Business, geographical areas of operation, weight/value ratios of products and materials. This is an expensive operation. Improvement in the efficiency of logistics function yields savings as well as customer satisfaction.

IMPORTANCE OF LOGISTICS MANAGEMENT IN INDIA I.

Liberalization and opening our door to competition

II.

Global business has long supply & distribution lines

III.

Changing Indian customer, aware, demanding and less brand loyal

IV.

Competition ensures that product differentiation in terms of quality is difficult

V.

Product life cycles are shrinking

VI.

Our markets are shifting from sellers’ to buyers’

VII.

Many consumer products are moving into commodities market Babasabpatilfreepptmba.com

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A study on modern warehousing practices

VIII.

India is a large country. Large distances separate production and consumption centers. Essential commodities have to travel from Food Corporation warehouses to consumers through PDS.

IX.

Logistics performance has not been impressive. Fruits and vegetables are grown at various places but do not enjoy access to market WHAT ARE THE OPERATIONAL OBJECTIVES OF LOGISTICS?

1.

Rapid response F-flexibility objective of an organization: Some companies measure this as response time to customer’s order. On an average how much time do we need to fulfill one particular type of customer’s order in a year? This is a measure of Rapid response Logistics should ensure that the supplier is able to respond to the change in the demand very fast. Entire production should change from traditional push system to pull system to facilitate rapid response. Instead of stocking the goods and supplying on demand, orders are executed on shipmentto-shipment basis. Information Technology plays an important role here as an enabler. IT helps management in producing and delivering goods when the consumer needs them. This results into reduction of inventory and exposes all operational deficiencies. Now the management resolves these deficiencies and slashes down costs. [Concept of SMED and KANBAN as practiced by JIT companies in Japan or elsewhere]

2.

Minimum variance D-delivery objective of an organization, this can be measured as ‘On Time Delivery’ or OTD. If 100 deliveries are made in a month/quarter/year how many reached as per the commitment made to the customer? This percentage is OTD. Any event that disrupts a system is variance. Logistics operations are disrupted by events like delays due to obstacles in information flow, traffic snarls, acts of god, wrong dispatches, damage in transit. Traditional approach is to keep safety stocks and transport the goods by high cost mode. The cost of this approach is huge. Logistics is expected to minimize these events, thereby minimize and improve on OTD

3.

Minimum inventory This is component of cost objective of a company. Inventory is associated with a huge baggage of costs. It is termed as a necessary evil. Objective of minimum inventory is measured as Inventory Turns or Inventory Turnover Ratio. Americans call this measure as

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turn velocity. Logistics management increases these turns without sacrificing customer satisfaction. Higher turns ensure effective utilization of assets devoted to stock. [Concept of single piece flow as practiced by JIT companies in Japan or elsewhere]. Logistical management should keep the overall well being of a company in view and fix a minimum inventory level without trying to minimize the inventory level as an isolated objective 4.

Movement consolidation Transportation is the biggest contributor to logistics cost. Transportation cost depends on product type, size, weight, distance to be transported etc. for transporting small shipments just in time [reduction in inventory costs] expensive transport modes are used which again tend to hike the costs. Movement consolidation is planning several such small shipments together [of different types of shipments] by integrating interests of several players in the supply chain. Generally, large shipment size and long distances reduce transportation cost per unit. Movement consolidation shall result into reduction in transportation costs.

5.

Quality If the quality of product fails logistics will have to ship the product out of customer’s premises and repeat the logistics operation again. This adds to costs and customer dissatisfaction. Hence logistics should contribute to TQM initiative of management. In fact, commitment to TQM has made the management’s world over wake up to the significance of logistics function. Logistics can play a significant role in total quality improvement by improving the quality of logistics performance continuously and continually.

6.

Life cycle support [cradle to cradle logistical support- produce, pack (cradle) and repack (cradle)] Logistics function is expected to provide life cycle support to the product after sale. This includes

a.

After sales service: the service support needed by the product once it is sold during its life cycle

b. Reverse logistics [concept Oct’03] or Product recall as a result of  Rigid quality standards [critical in case of contaminated products which can cause environmental hazard]  Transit damage [leaking containers containing hazardous material]  Product expiration dating  Rigid laws prohibiting unscientific disposal of items associated with product [packaging] Babasabpatilfreepptmba.com

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ďƒ˜ Rigid laws making recycling mandatory ďƒ˜ Erroneous order processing by supplier ďƒ˜ Reverse logistics is an important component of logistics planning

LOGISTICAL FUNCTIONS 1.

Information management Management is appreciating importance of information as an element of logistics of late, now. The role of information is vital in order processing. Quality of information is critical as error in composition of information requirement creates potential disturbance in the supply chain. Incorrect order processing due to erroneous information will result into product recall and reshipment if the sales opportunity still exists. Faster and quality information flow from customer to processor results into cost effective logistics Forecasting and order management are two areas of logistical work dependent on information. Forecasting is an effort to estimate future requirements to position inventory or assets devoted to inventory. As forecasting becomes unreliable in a fast changing environment, control strategies like JIT, Quick Response and Continuous Replenishment came into being. Now it is the task of the logistics function to use information technology to strengthen operation control and forecasting to the best advantage of the organization. Leading firms typically have information systems capable of monitoring logistical performance on a real time basis giving them the capability to identify potential operational breakdowns and take corrective actions prior to customer service failure. In situations where timely corrective action is not possible, customers can be notified in advance and thereby taking the surprise out of forthcoming service failures

2.

Inventory control

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Keeping the stock levels in such a position, so that neither stock out nor stock piling takes place is Inventory control. While formulating inventory policies find out 20% of the products marketed that account for 80% of the profit. 3.

Transportation Transportation is the most visible of all elements of logistics and high contributor to logistics expenditure. Costs of transportation are mainly as follows a. Movement costs: money paid for moving material across geographical terrain b. Preservation costs: money spent on preserving the material during transit c. Cost of idle asset: inventory is unavailable for conversion during transit. This results into costs for organization d. Administration costs: money spent on administration

Transportation is accomplished in three ways a.

One’s own fleet – private carriage

b.

Contract with specialists on long term basis – contract carriage

c.

Contract on individual shipment basis – common carriage

Expectations from transportation service are a.

minimum cost – transportation costs are explained earlier

b.

Speed: speed of transport means the speed with which goods reach the destination.

c.

Consistency: consistency in speed is achieving the same speed over a long period of time. Consistency reflects on the reliability of carrier. Any unexpected variance can play havoc with logistics. Modern information technology has made continuous tracking of consignments possible. This takes the element of surprise out. IT has helped logistics managers to seek out ways and means to improve speed and consistency. What is becoming important is a combination of speed and consistency. Requirement of speed depends on type of industry. In some situations speed may not be important. Then transportation service offering high speed increases cost. So logistics managers have to strike a balance between service and cost. Three important aspects of transportation are facility location, transportation cost and consistency. Design of logistics system should consider total costs rather than elemental cost of transportation

4.

Warehousing Warehousing is holding material before dispatch after it is produced. Although warehousing is conventionally considered to be a storage facility, it plays a much higher

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role from logistics viewpoint. It is perceived to be a switching facility rather than a storage facility. Warehouse ownership can be private, public or third party contract. Warehouse provides economic and service benefits to the logistical system. Economic benefits are Movement Consolidation, Break-bulk, Cross-dock, Processing/Postponement & stock piling. Service benefits are spot stocking, assortment, mixing & production support 5. Material handling Material handling covers receiving, moving, storing, dispatching activities. It has an impact on cost [capital as well as running], quality and safety. One of the principles of material handling is minimum movement. Commonly used material handling equipment are forklifts, EOT Cranes, hoists, pulley blocks, trolleys, railroad cars, conveyers, ropes and slings etc. 6. Packaging Packaging is done to make handling and transporting cost effective. It protects the product in transit and handling. Packing is expected to facilitate lifting and moving by providing easy access to forks or hooks. Packing is also expected to display universal symbols and other instructions for handling. E.g. Pallets and containers, wooden boxes, wrapping etc Types of packaging: consumer packaging and industrial packaging Consumer packaging - There is no focus on logistics. Importance is given to marketing appeal and packaging the finished product. Industrial packaging - importance is given to logistics considerations handling and moving. Individual parts are packed in cartons or bags and grouped together as master cartons. Master cartons are grouped into units for handling. This concept leads to unitization and subsequently to containerization. SOME IMPORTANT CONCEPTS 1. Logistics Management and Supply Chain Management a.1950 – 1960: Importance of examining costs and benefits in physically moving the goods to customers came into focus in post war1950s. We have seen earlier that concept of logistics was born in the crucible of warfare and came into business after the end of II world war. Idea of total system cost emerged during this period. Analyses of trade off situations between costs of several activities, selection of modes of transport keeping total system cost in mind are fallout of this concept. It can be understood that selection of water as a mode of transport gives low transportation cost that will result into high transit inventory

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A study on modern warehousing practices adversely affecting total system cost. Initially outbound logistics was in focus as value of the finished goods inventory is high. Idea of supply chain management Supply Chain Management aims at breaking down organizational barriers a] to share sales information on ‘real time’ basis that reduces inventories and need for safety stocks. This is called supply chain compression resulting into inventory reduction and larger inventory turns. Dell Computers considered being leaders in computers business have recorded 50 inventory turns in 1997, IV Q, whereas Compaq could manage only 10 turns. b] Smoothen the flow of information both ways [orders reaching the suppliers, and products reaching the that results into reduced delivery time or reduction of lead-time resulting into shortened cash-flow cycle

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particulars 1. Scope

Logistics management

Supply chain management

Inbound logistics, in process inventory

All players in the supply chain from

[movement from one plant to another],

raw material source to finished

outbound logistics

product consumer, vendors, their vendors,

supplier

organization

[shipper],Warehouses, providers,

customers,

service their

customers 2. How this is

By internal integration of logistics

By external integration of roles of

created

functions

various players in the supply chain.

in

business?

management

handled

by

various

functions

within

organization 3.Main

Logistics cost reduction by integrating

Supply chain profitability by value

objective

resources across the pipeline

creation.

4. Definition

Logistics is the process of strategically

Management of upstream and down

managing procurement and storage of

stream relationships with suppliers

material , part and finished inventory

and customers to deliver superior

[and related information flow] through

customer value at less cost to the

organization

supply chain as a whole.

and

its

marketing

channels in such a way that current and future profits are maximized through cost effective fulfillment of order

5. Origin

6. Focus

A

very old concept

in military

As a logical extension of logistics

planning.

management

L/M tries to take the product to the

SCM focuses on value creation in

consumer at minimum logistical cost.

the supply chain. Hence this is

Hence it is supply driven.

customer focused or demand driven.

2. Business functions of logistics management As discussed earlier logistics is a concept of military planners. But now it has found its way into business.

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I] Business logistics is planning, implementing and controlling efficient & effective flow and storage of goods, efficient & effective flow services, and related information from point of origin to point of use or consumption in order to meet customer requirements. a. Food and agricultural products: We are familiar with warehouses owned by Food Corporation of India. The government in these warehouses stores huge quantities of procured food grains. These stocks are subsequently moved to outlets of Public Distribution System. This is a logistical operation by Govt. of India in Agricultural Products Sector b. Raw materials and finished engineering, chemical, pharmaceutical goods. c. Consumer durable goods: Logistical Management is receiving attention in industry as many consumer durable products are moving into commodities market. II] Business logistics plays the role of facilitator for trade and business. It makes business happen. 3. Logistical mission Mission of logistics is to achieve business objectives by delivering desired quality of service at the lowest total cost. This is nothing other than delivering QCD expectations of the customer by planning logistical operations at minimum cost. This can also be called creating customer value at minimum cost. The illustration below shows that 2. Business functions of logistics management As discussed earlier logistics is a concept of military planners. But now it has found its way into business. I] Business logistics is planning, implementing and controlling efficient & effective flow and storage of goods, efficient & effective flow services, and related information from point of origin to point of use or consumption in order to meet customer requirements. a. Food and agricultural products: We are familiar with warehouses owned by Food Corporation of India. The government in these warehouses stores huge quantities of procured food grains. These stocks are subsequently moved to outlets of Public Distribution System. This is a logistical operation by Govt. of India in Agricultural Products Sector b. Raw materials and finished engineering, chemical, pharmaceutical goods.

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c. Consumer durable goods: Logistical Management is receiving attention in industry as many consumer durable products are moving into commodities market. II] Business logistics plays the role of facilitator for trade and business. It makes business happen. 3. Logistical mission Mission of logistics is to achieve business objectives by delivering desired quality of service at the lowest total cost. This is nothing other than delivering QCD expectations of the customer by planning logistical operations at minimum cost. This can also be called creating customer value at minimum cost. The illustration below shows that

Transportation

Warehouse

M/H

290

Customer service goals [QCD]

Customer service goals [QCD]

Customer service goals [QCD]

Functional Inputs to Logistical Management Logistical mission cuts across functional lines to achieve business objectives at minimum cost. Logistical mission is a set of goals to be achieved at a particular type of market for a particular type of product. Naturally this is responsive to competition. Hence logistical mission is to achieve above goals at minimum system cost. Focus is on mission rather than on isolated functions. Mission of logistics is providing a means by which customer satisfaction is achieved.

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4. Role of planning in logistics management •

Role of planning is central to logistics management

Mission of logistics management is to plan and coordinate all those activities necessary to achieve desired levels of service and quality at lowest possible cost.

Logistics is fundamentally a planning concept that seeks to create a frame work through which needs of the market place can be translated into a manufacturing strategy and plan

Logistics makes one plan, integrating various resources of the organization that replaces traditional concept of planning in pockets

5. Logistics interface with marketing Interface is a common wall or surface between two objects, concepts or functions. It can also be common area/areas of performance or interest. Outbound logistics plays an important role in selling the product of the company as it moves the product through the distribution system to the customer. Hence it is called the other half of marketing. In several instances making the product available at the right time at the right place itself is the key to successful selling. A student of management very well knows four Ps of marketing. We have already seen the role of logistics as far as ‘Place’ is concerned. It is quite interesting to see the interface with respect to other Ps as well. Price: Logistics enables marketing to quote a competitive price by providing discount opportunities on account of Transportation cost savings. Logistics Manager can plan the size of the consignment confirming to the most economical schedules published by transportation service providers to save transportation costs. If order size matches with the favored size the benefits are substantial. Logistics Management has to balance inventories to tackle anticipated price-triggered sales.

Product: Inputs of logistics manager are quite important as far as the size and shape of the product are concerned. Size and shape of the product can make logistics nightmarish, thereby adding huge amount of costs. Weight/volume ratio plays very important role in deciding economics of logistics. The story of Gillette is well known logistical circle. The low weight, unwieldy floor display proved to be a very expensive logistical operation. While consumer packaging provides sales

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push in a retailers shop, it can make industrial packaging difficult due to its shape and ability to protect the contents. Product and its packaging is a common area from the point of view of logistics. Promotion: Logistics Management is required to manage inventory needed to match sales triggered by promotional activities in the market, Marketing Management & Logistics Management need to work closely in deciding promotional strategies for the product. Promotional strategies may be push or pull type. Logistical problems may be faced in either or both, but being aware takes the punch away from the blow! Place: Marketing decision to distribute the product directly to retailers or through wholesalers has a great impact on logistical operations. Demand placed by wholesalers is more streamlined as compared to retailers. Logistical management of retailers’ demand often requires time sensitive transportation methods which are expensive. In addition to the four Ps, customer service is another area where marketing & logistical managements have to work closely to effectively beat the competition. 6. Inbound & outbound logistics Inbound Logistics Creation of value in a conversion process heavily depends on availability of inputs on time. Making available these inputs on time at point of use at minimum cost is the essence of Inbound Logistics. All the activities of a procurement performance cycle come under the scope of Inbound Logistics. Scope of Inbound Logistics covers transportation during procurement operation, storage, handling if any and overall management of inventory of inputs. Several activities or tasks are required to facilitate an orderly flow of materials, parts or finished inventory into a manufacturing complex. They are sourcing, order placement and expediting, transportation, receiving and storage. Overall, procurement operations are called inbound logistics. A procurement cycle is shown below. Inbound logistics have potential avenues for reducing systems costs. Delivery time, size of shipment, method of transport & value of products involved are different from those of physical distribution cycles. Normally delivery time is large as a low cost transportation mode is chosen. As the value of inventory is low size of shipment is large & transit inventory costs are low. As the price of products is lower, trade off between cost of maintaining inventory in transit and low cost transport exists to the benefit of the organization. Babasabpatilfreepptmba.com

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Outbound Logistics Value added goods are to be made available in the market for customers to perceive value. Finished goods are to be distributed through the network of warehouses and supply lines to reach the consumer through retailers’ shops in the market. During conversion value is added to the raw materials and as a result value of the inventory in this case is very high unlike inputs. Now the size of shipment, modes of transport and delivery time are different as compared to inputs. Activities of distribution performance cycle come under the scope of Outbound Logistics. They are order management, transportation, warehousing, packaging, handling etc. 7.

Importance of 3Cs – competitive advantage by effective logistics management The three Cs in business are Company, Customer and Competition. All the three “C” are vital for healthy business and prosperous economy. Buying decision is always triggered by a need a consumer is experiencing due to the stress he is under. Customer is attracted by value when he is about to make a buying decision. Competitors in business continuously add value to their products in order to be ahead in the competition. Any supplier organization or Company tries to be better than the Competition by utilizing their assets efficiently and effectively.

The Supplier Company tries to differentiate her products in terms of functional quality and product cost. Competition has ensured that technology and human skills are almost same everywhere. Hence product differentiation in terms of functional quality and product cost

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is nearly impossible. But a great opportunity exists for the Supplier Company to differentiate her products by service and logistics cost by superior logistics. Superior logistics gives cost advantage [productivity advantage] to the supplier company as logistical costs are reduced. Superior logistics provides value advantage as it provides superior customer service. When this happens customer sees better value in the products of supplier Company as compared to competition. Different types of economic utilities like form utility, place and time utility and possession utility add value to a product, In other words make product attractive and trigger purchase. a)

Form Utility is given by Production to a product when conversion process is held.

Logistics also adds form utility when warehousing activities like mixing, assembling, processing postponement or unpacking take place. b)

Place and Time Utility is given by logistics functions when a product is moved to a

needed place on time to serve the customer c)

Possession Utility: Marketing creates Possession Utility by promoting the product by

d)

Advertising and or by any other means. But logistics finally possession by customer

happen.

ORGANISATION PROFILE

History Expeditors are much more than getting a piece of freight from one point to another. The Council of Logistics Management defines logistics as that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements. Our job is to make sure that from raw material to finished goods sitting on the retail shelf, we provide the critical services and information necessary to give our clients a competitive advantage in the management of their supply chains Babasabpatilfreepptmba.com

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1979 -- 1 location We register as a single office ocean forwarder in Seattle, Washington as Expeditors International of Washington, Inc. 1981 -- 9 locations Expeditors become a global logistics company in July, when Peter J. Rose, James L.K. Wang and Glenn M. Alger join the company and open seven offices around the world. The initial focus is on U.S. inbound freight from the Far East, primarily Taiwan, Singapore, and Hong Kong. Our combination of transportation services and customhouse brokerage quickly makes us one of the largest U.S.-based air freight forwarder of goods from the Far East. 1983 -- 11 locations We expand our U.S. export market by hiring senior export executives to lead branch offices in the U.S. and key foreign markets. We add export capabilities to Chicago, Seattle, New York, San Francisco and Los Angeles Offices, and we open our Atlanta office. 1984 -- 12 locations Expeditors become a public corporation with stock traded over the counter on NASDAQ (symbol: EXPD). During our first year as a public company, we report more than $50 million in gross revenues and $2.1 million in net earnings. We open our Toronto office this year, and we now have 161 employees. 1985 -- 13 locations: Our first move into the ocean business with the acquisition of Pac Bridge, a major non-vessel ocean common carrier (NVOCC) and expansion of less than container load (LCL) and full container ocean services. We also open a new office in Boston this year. 1986 -- 16 locations We top $100 million in gross revenues ($108,774,000). We enter the European market by acquiring a small export company and opening our London office. 1987 -- 17 locations We open our first office in Malaysia.

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1988 -- 24 locations We substantially expand export volume through a series of planned expansion in the Far East, Europe, Australia, and the U.S. Peter J. Rose, one of the founders, assumes the title of President and CEO. 1989 -- 27 locations We complete the development of a computerized air export program. 1990 -- 32 locations Our Brussels office becomes our first in continental Europe. We also open offices in Kuala Lumpur, Jakarta and Cleveland (U.S.). 1991 -- 37 locations Our net earnings top $10 million ($10,196,000). We formalize an internal quality program called EXCEL (Expeditors Commitment to Excellence and Leadership), built on a goal of 100% customer satisfaction 100% of the time. 1992 -- 51 locations The number of worldwide employees tops 1,000 (1,100). We open five offices in Germany and our first Middle East office in Saudi Arabia, bringing our number of offices worldwide to 48. 1993 -- 56 locations We establish a new division called Expeditors' Cargo Management Systems (e.cms), an ocean consolidation program with an automated electronic data interface. We open our first office in China and Beijing grants Expeditors a rare class "A" license. 1994 -- 80 locations The number of our employees doubles in two years to 2,000. We open distribution centers in Seattle, Chicago, Los Angeles, Miami, Newark, London, Rotterdam, Brussels, Hong Kong, Taipei, and Singapore. 1995 -- 96 locations

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This is the first year with more than $500 million in gross revenues ($584,691,000). We enter Central and South America with six offices and 10 agents, and expand in the Middle East. Expeditors launch a Cargo Insurance division. We also gain a new address, on the internet: http://www.expeditors.com. 1996 -- 114 locations Expeditors name a Director of Quality and formalize its global pursuit of ISO 9002 certification. A total of 27 offices are ISO 9002-certified as five more offices achieve the accreditation in Asia and Europe. The number of employees tops 3,000 (3,250). We open our first offices in India, Pakistan, and Bangladesh. The class "A" license we hold in Beijing is extended to four more major Chinese trading points, bringing our total offices in China to eight. While its employees are recognized as the best trained in the industry, Expeditors raises its minimum annual training requirement for employees from 30 hours to 52 hours, in recognition of the increasingly sophisticated needs of its customers. 1997 -- 138 locations We add more than 1,000 employees in one year, for a total of 4,500. We continue networking offices on the northern and southern borders of the United States. The arrangement of offices on both sides of the U.S. - Mexico border is unique among customs brokers, and this offers unprecedented efficiency and speed in processing customs entries. The four new offices in France will soon be joined by other new locations in Europe, as Expeditors continues to selectively expand its global network. 1998 -- 149 locations ISO 9002 certification is achieved in 38 offices throughout the United States, Canada and Mexico, bringing the total number of Expeditors offices certified in this standard to 65 in 17 countries. Gross revenues top $1 billion for the first time ($1,189,044,000) and the number of employees tops 5,000 (5,300). 1999 -- 163 locations We celebrate our 20th year, continuing our reputation as a full service global logistics provider. The number of employees grows to 6,480. Expeditors services include Air and Ocean Freight Forwarding, Vendor Consolidation, NVOCC, Customs Clearance, Marine

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Insurance, Distribution, and other value added global logistics services. Recognition from our customers (Cisco Systems and British Airways Catering name us as Supplier of the Year) helps reinforce the mission at Expeditors. 2000 -- 177 locations This year the number of employees tops 7,000 (7,611), and offices are opened in Phnom Penh and Saigon. Expeditor’s places emphasis on reducing employee turnover and increasing productivity. Improvements are made on a globally consistent Management Trainee Program and Document Imaging (edoc).Holding strongly to the belief that you can't buy excellence but have to create and nurture it has resulted in continued success for our company. It was confirmed when Expeditors attained the goal of excellence and was given the "Best Companies to Work For" award by Washington CEO Magazine. But the greatest vote of confidence Expeditors can receive is to have good customers willing to trust Expeditors with their important business. 2001 -- 191 locations This year Expeditors was ranked third by Fortune for America's Most Admired companies in the Freight Delivery industry, and the Journal of Commerce awarded Expeditors with the Best Intermediary award? Forbes named the company to the list of America's top 400 companies. Our employees made all of this possible by servicing our customers, one shipment at a time. 2002 -- 195 locations First year with more than $2 billion in gross revenues ($2,296,903,000).First year with more than $100 million in net earnings ($112,529,000).Number of employees tops 8,000 Named to the NASDAQ 100.Expeditor views its role in the future of international trade as the preferred global logistics solutions company. The company will continue to satisfy its customers' needs through a responsive, highly-trained work force, integrated information systems and a global network. 2003 -- 206 locations Expeditors continue to thrive in a competitive and challenging industry and world economy. While other logistics companies fail to control costs and stay afloat, Expeditors continues to

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grow the number of offices, employees and total revenue, all while staying profitable. Air Cargo World ranks the company as the second overall freight forwarder and second in the trans-Atlantic region. In 2003, Expeditors adds full service offices to San Jose (Costa Rica), Orlando (Florida), Austin (Texas) and Tampa (Florida). Our first year with more than $1 billion in assets ($1,044,078,000) 2004 -- 211 locations A number of milestones mark our 25th year: it's the first year with more than $3 billion in gross revenues ($3,317,499,000); the number of employees tops 9,000 (9,445); and net earnings of $156,126,000. $1,000 invested in Expeditors at the IPO price of $9.00 a unit (share and a warrant) is worth $233,600 on December 31, 2004, (assuming warrant exercise) for a compound annual rate of return of 28%. 2005 -- 226 locations In a year of more mergers among other logistics providers and carriers, Expeditors stays true to its vision of organic growth, with five new locations in Asia, six in Europe, two in Latin America, and one each in North America and the Middle East. The number of employees worldwide now exceeds 10,000 and total revenues approach four billion ($3.9 billion). Expeditor is noted by Forbes as the Best Managed Transportation Company and receives two Quests for Quality awards by the Logistics Management publication. The Wall Street Journal lists Expeditors as #1 in their shareholder scorecard for Delivery Services, above both UPS and FedEx. 2006 -- 233 locations Meeting key strategic goals in Asia, EMAIR, South Pacific and the Americas, Expeditors focused on delivering a consistent level of customer service and productivity around the world. Entering onto the Fortune 500 list for the first time with $4.6 billion in revenue, Expeditors also stood out as Fortune's #1 Most Admired Company in its industry. 2007 -- 247 locations

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Expeditors continued to focus on delivering a consistent level of customer service and productivity around the world. New as a Fortune 500 company with $5.2 billion in revenue, Expeditors stood out as one of Fortune's Most Admired companies in their industry for 2007. 2008 -- 253 locations Good consistent customer service has always been our goal here at Expeditors and 2008 was no different. Expeditors continued to open new offices and made capital expenditures for two beautiful new offices in Hong Kong and Shanghai. Peter Rose was named one of Barron’s top 30 CEOs for 2008 and Business Week ranked Expeditors No. 32 on their Top 50 Best Performing Companies. 2009 is our 30th anniversary and we look forward to the coming year and to all the surprises it will bring. Awards 1993: Licensed Class "A" Freight Forwarder o

Beijing approved a rare Class "A" license for Expeditors.

Awards 1999 •

Dutch Association of General Cargo Sales Agents o

Received award for reservation integrity, communication, know-how and handling

South Africa Logistics Council o

Recipient of the annual Logistics achiever award for providing the best integrated logistics service

Awards 2000 •

Kent, Washington Chamber of Commerce o

Ranked #1 for the In Pursuit of Excellence award program

Hong Kong Labor Department

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Recipient of the Good People Management Award for outstanding performance in people management

Industry Association of Sao Paulo o

International Freighting Weekly o

Ranked #3 for best international cargo agent based on customer satisfaction

Best International Logistics Company of the Year

U.S. Customs Broker National Permit o

Affords greater flexibility in structuring import operations to allow the conduct of certain customs business that is otherwise restricted.

Washington CEO Magazine o

Logistics Management & Distribution Report o

Chosen as recipient for the Quest for Quality award

Shipping Digest o

One of the best places to work in Washington

One of the most e-capable carriers

Journal of Commerce o

Leader in International Trade and awarded best intermediary of the year

Awards 2001 • Forbes o •

One of Americas top 400 companies

Fortune o

Ranked #3 in the transport industry

Awards 2002

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Trofeu Fenix of Efficiency Award o

The NASDAQ-100 Index o

In Brazil awarded third place as best Cargo Agent of the year

Expeditors is added to the NASDAQ 100

Selling Power o

Expeditors awarded #1 Best Service Company to Sell For

Awards 2003 • Logistics Management & Distribution Report o •

Chosen as recipient for the Quest for Quality award

Air Cargo World o

Named the second overall freight forwarder and second in the trans-Atlantic region

Transports & Negócios o

Portuguese newspaper names Expeditors best in class for both Air and Ocean Freight Forwarding

Forbes Platinum List o

Fifth straight year on the best big companies list

Awards 2004 • Global Logistics & Supply Chain Strategies Magazine o •

Fortune o

Ranked #2 Most Admired company in Transportation and Logistics.

Wall Street Journal o

Includes Expeditors in its global top 25 third party logistics providers ranking.

Expeditors ranked #1 in the air freight category for the shareholder scorecard.

Puget Sound Business Journal

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British Airways o

Carrier Recognition Award for Global Airfreight for the third year in a row.

Samsung o

Awards Expeditors for outstanding service.

Philips o

Peter J. Rose, CEO, is named Executive of the Year.

Logistics Supplier of the Year Award.

International Rectifier o

Service Provider of the Year Award.

Awards 2005 • Forbes o •

Named Best Managed Transportation Company

Institutional Investor o

Names Peter Rose as one of the top CEOs for the Airfreight & Surface Transportation Industry

Logistics Management o

Expeditors receive a Quest for Quality award in both the Freight Forwarders and Third-Party Logistics categories.

The Wall Street Journal o

Expeditors ranked #1 in the air freight category for the shareholder scorecard for second straight year.

Samsung o

Expeditors China receives the Samsung Best Partner awards for the second year in a row.

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Awards 2006 • Global Logistics and Supply Chain Strategies o

Ranked #9 in the Third Party Logistics Industry

o

Ranked #8 in Global Ocean TEU Volume, #1 in the Asia to US lanes and #2 in the China to US lanes

Logistics Management o

Lists Expeditors at #3 company in their 3PL Report, by North American Revenue

o •

Best Fast Moving Consumer Logistics Service Provider in Thailand

Johnson & Johnson o

Awarded Expeditors, Campinas, Brazil for Excellency in innovative logistics services

Eaton Corporation o

Trofeu Fenix o

Ranked #1 in the Transportation and Logistics Category

Visteon o

Third place in freight forwarder category, Campinas, Brazil

Fortune's Most Admired Companies o

CIESP Award: Best run supply chain, Campinas, Brazil

Named Expeditors as one of the 15 outstanding suppliers

Pfizer o

Awarded Expeditors, Indianapolis, Broker of the Quarter

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Awards 2007 •

Global Logistics and Supply Chain Strategies o

Named Top Supply Chain Partner

o

Ranked #9 on the Top 25 Global Third-Party Logistics Providers in their May 2007 Issue

Logistics Management o

Earned #1 in both Freight Forwarding and Third-Party Logistics categories for the Logistics Management 2007 Quest for Quality Awards

Forbes o

Eaton Corporation o

One of the top ranked companies in the Transportation and Logistics Category

Barron's Online o

Recipient of the "Premier Supplier" award

Fortune's Most Admired Companies o

Included on the Best Managed Companies List for Transportation Industry

Peter Rose was named to the top 30 Global CEOs list.

British Airways o

Recognized with the annual award for "Best Support to Commercial Planning," Istanbul, Turkey

LAN Cargo o

Awarded Expeditors, Argentina, as one of their top five freight forwarders

Samsung o

Expeditors, China, received the third party logistics provider "Best Partner Award" for 2007

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A study on modern warehousing practices •

Wal-Mart o

Awarded the Global Air Freight Forwarder of the Year Award

Awards 2008 • Transporte & Negocios o •

Fenix Award of Efficiency o

Best Logistic Provider

Covidien o

Best Ocean Freight Forwarder

Customs Broker of the Year

Logistics Management o

Quest for Quality Award in both Third Party Logistics and Freight Forwarding categories

GE Healthcare o

Hewlett Packard o

Productivity Award

Outstanding Achievement Award

Samsung o

Best Partner Award

Mission Statement To set the standard for excellence in global logistics through total commitment to quality in people and customer service, with superior financial results. Goals To be the recognized industry leader, through total commitment to customer service, by maintaining our uncompromising integrity, in the support and development of our People, Communications and Systems in sustained growth and profitability.

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A study on modern warehousing practices

Strategy As a non-asset based company, we are able to give our clients several options for freight management. Our investments are made in people and systems. Through organic growth, not acquisition, we give our clients and employee’s peace of mind knowing their day to day business won't be disrupted by merger pains; our systems integrity is kept intact, not disrupted by companies whose business was founded on a different platform. Our customers are most interested in the quality and consistency of service we provide regardless of the country in which we're doing business. Culture: Appearance •

Professionalism is at the core of our identity.

Attitude •

A passionate, caring and winning attitude is focused on the basics of teamwork.

Confidence •

We must believe to achieve, not only in ourselves, but also in our co-workers.

Curiosity Be the type of person who wants to learn more about something.

ORGANISATION CHART District manager

Product Manager

AIR

OCEAN

Department Mangers

Distribution

Custom Brokerage

Supervisors Babasabpatilfreepptmba.com

Insurance

Executives

Team leaders 45


A study on modern warehousing practices

OBJECTIVES OF THE STUDY  To study the current status of domestic transportation of goods.  To know the customers problems with transporters and challenges taken to overcome those problems.  To know the latest technology used in domestic transportation of goods.

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A study on modern warehousing practices

METHODOLOGY Sampling Methodology: • Sample unit: The area of survey conducted is Bangalore city. • Sample size: Sample size for this project is 50 customers of manufacturing companies and 50 service providers i.e. Logistics companies. •

Sampling method: I have used Non- probability sampling i.e. Random Sampling.

Research plan: 1. In this research plan of project the study was conducted by the survey method.

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A study on modern warehousing practices

2. Taking sample of 50 customers of manufacturing companies, retail, pharmaceuticals, garments

and telecom and logistic companies

by

commencing sampling using the research instrument as the questionnaire. 3. Personal interview is considered as the sample plan. 4. For this project area of research is Bangalore City. Data collection method: I have collected the data from the following sources: •

Primary data:  The data collected from the company persons.  Questionnaires

Secondary data:  Interviewing with the customers of manufacturing companies and logistic companies.  Internet

Measuring tool: For preparing this project I have considered questionnaire as measuring tool for collecting the data.

ANALYSIS For service providers 1.

Please give brief of the infrastructure about your warehouse? [

Types Heavy duty racking Slotted racking Material handling others Total

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No of User 24 06 15 05 50

Percentage 48% 12% 30% 10% 100%

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A study on modern warehousing practices

Analysis:From the above table we can analyze that majority of the service providers i.e. 48% of them are having heavy duty racking. Followed by next majority of i.e. 30% of them is material handling equipments. 12% is slotted racking and remaining 10% to others.

Inference:-From the above analysis we can infer that majority of the service providers are having heavy duty racking facility.

2. What type of industries you are serving at the warehouse? No of User

Percentage

Automobiles

14

28%

IT

06

12%

Telecommunication

28

56%

Garments

02

04%

Total

50

100%

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Analysis:From the above table we can analyze that majority of the service providers i.e 56% of them are serving for telecommunication industries. Followed by next majority of the industries i.e. 28% of them are automobile, 12% of them are IT sector and remaining 4% of them are serving for garments.

Inference:From the above analysis we can infer that majority of the service providers are having customers from telecommunication. 3. Do you operate temperature controlled warehouse? Temperature controlled Yes No Total Babasabpatilfreepptmba.com

No of respondents 04 46 50

Percentage 08% 92% 100% 50


A study on modern warehousing practices

temperature controlled 100 90 80 70 60 50

Series 1

40 30 20 10 0 Yes

No

Analysis:From the above table we can analyze that majority of the service providers i.e. 92% of them are not operating the temperature controlled warehouse. Followed by next majority i.e. 08% of them are operating the temperature controlled warehouse.

Inference:From the above analysis we can infer that majority of the service providers are not operating the temperature controlled warehouse.

4. What are services offered at the warehouse? Services offered Storage Transportation and distribution Racks Material handling equipments Total

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No of respondents 26 15 02 07 50

Percentage 52% 30% 04% 14% 100%

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Services offered 60 50 40 30 Series 1

20 10 0 Storage

Transportation and distribution

Racks

Material handling equipments

Analysis:From the above table we can analyze that majority companies i.e 52% of them are providing service for storage. Followed by next majority of i.e. 30% of them are providing transportation and distribution. 14% of them are offering services of material handling equipments and remaining 04% of them are offering racking facility.

Inference:From the above analysis we can infer that majority of the service providers are offering storage facility. 5. Do you provide value added services? Services provider Yes No Total

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No of respondents 11 39 50

Percentage 22% 78% 100%

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Services provider

Yes No

Analysis:From the above table we can analyze that majority of the companies i.e. 78% of them are not providing any value added services. Followed by next majority of companies i.e. 22% of them are providing value added services

Inference:From the above analysis we can infer that majority of the companies are not providing any value added service.

6. Do you deal with dangerous goods at the warehouse? Dangerous goods Yes No Total

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No of respondents 02 48 50

Percentage 04% 96% 100%

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Sales

Yes No

Analysis:From the above table we can analyze that majority of the companies i.e. 96% of them don’t deal with the dangerous goods. Followed by next majority of companies i.e. 04% of them deal with dangerous goods.

Inference:From the above analysis we can infer that majority of companies don’t deal with dangerous goods.

9. Please provide a brief the WMS used in your system? WMS User In house developed Readymade software Total

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No of user 18 32 50

Percentage 36% 64% 100%

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A study on modern warehousing practices

WMS User 80 60 40 20

Series 1

0

Series 1 In house developed

Readymade software

Analysis:From the above table we can analyze that companies i.e. 64% of them are using out sourced software. Followed by next majority of the companies i.e. 36% of them are using in house developed software.

Inference:From the above analysis we can infer that majority of the companies are using the out sourced software.

8. What are the modern practices used at the warehouse? Practices WMS Fork lifters RF Scanners Material stackers Total

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No of users 31 12 05 02 50

Percentage 62% 24% 10% 04% 100%

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70 60 50 40 Practices

30 20 10 0 WMS

Fork lifters

RF Scanners

Material strackers

Analysis:From the above table we can analyze all the modern warehousing practices that majority of the companies i.e. 62% of them are using WMS. Followed by next majority of the companies i.e. 24% are using Fork lifters. 10% of them are using the scanners and 6% of them are using material stacker.

Inference:From the above analysis we can infer that majority of the companies are using WMS as modern warehouse practice.

9. Please give brief on current demand from the customers for the modern practices? Customer demand Online tracking Modern material handling equipments Bar coding RF Scanners Total

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No of demand 30 06 08 06 50

Percentage 60% 12% 16% 12% 100%

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Analysis:From the above table we can analyze that majority of the customers i.e. 60% of them are demanding online tracking. Followed by next majority of the customers i.e. 16% of them are demanding for bar coding. 12% on modern material handling equipments and remaining 12% of them are demanding RF scanners.

Inference:From the above analysis we can infer that majority of the customers are demanding for online tracking preceded by demands for Bar coding.

10. Do you see feasibility of using modern warehouse practices in India? Modern warehouse practices Yes No Total

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No of user 50 00 50

Percentage 100% 00% 100%

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A study on modern warehousing practices

modern warehouse practices 120 100 80 60

Sales

40 20 0 Yes

No

Analysis:From the above table we can analyze that all the respondents i.e. 100% of them say that it is feasible of using modern practices in ware house.

Inference:From the above analysis we can infer that it is feasible to use modern ware house practice in ware house.

FOR CUSTOMERS Babasabpatilfreepptmba.com

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A study on modern warehousing practices

1. The products are imported or manufactured locally?

Products Imported Manufactured Total

No of respondents 10 40 50

Percentage 20% 80% 100%

Products 20%

Imported Manufactured

80%

Analysis:From the above table we can analyze that majority of the industries i.e 80% of them are manufacture there goods locally. Followed by next majority of the industries i.e. 20% of them are importing the goods.

Inference:From the above analysis we can infer that majority of the industries are manufacturing their goods locally.

2. Please specify your storage requirements and warehouse?

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Requirements Easy accessibility Heavy duty racks Free from dampness and moisture Good infrastructure of warehouse Total

No of respondents 32 06 05 07 50

Percentage 64% 12% 10% 14% 100%

e

Analysis:From the above table we can analyze that majority of the customer’s i.e. 64% of them are asking for easy accessibility of goods. Followed by next majority of the costumers i.e. 14% of them are say good infrastructure of the of the ware house. 12% of them are demanding for heavy duty racks and remaining 10% of them are demanding for dampness and moisture free ware house.

Inference:From the above analysis we can infer that majority of the customers are demanding easy accessibility of goods in the ware house.

3. Nature of inventory i.e. fast moving or slow moving?

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Duration One week One month Six months One year Total

No of respondents 30 10 08 2 50

Percentage 60% 20% 16% 4% 100%

Analysis:From the above table we can analyze that majority of the inventory i.e. 60% moves on the weekly basis. Followed by next majority of the inventory i.e. 20% moves on the monthly basis. 16% of the inventory moves on in six month basis and remaining 4% of the inventory moves on yearly basis.

Inference: -From the above analysis we can infer that majority of the inventory moves on weekly basis.

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4. Please specify the distribution pattern of your product? Distribution pattern Direct to consumer Direct to dealer Total

No of respondents 34 16 50

Percentage 68% 32% 100%

Percentage

Direct to consumer Direct to dealer

Analysis:From the above table we can analyze that majority of the of the products i.e 68% of them are distributed directly to the consumer. Followed by next majority of the products i.e. 32% of them are distributed directly to the dealer.

Inference:From the above analysis we can infer that majority of the products are distributed directly to the consumer.

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5. How do you manage your inventory in-house or out sourced service? Type of inventory In house Out sourced Total

No of respondents 08 42 50

Percentage 16% 34% 100%

Analysis:From the above table we can analyze that majority of the company’s i.e. 34% of them manage their inventory through outsource. Followed by next majority of the companies i.e. 16% of them manage their inventory through in house.

Inference:From the above analysis we can infer that majority of the companies manage there inventory by out sourcing.

6.

Basic service requirements at the warehouses?

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service requirements Pick and pack Labeling Bar coding Domestic/local transportation Total

No of respondent 6 14 12 18 50

Percentage 12% 28% 24% 36% 100%

Analysis:From the above table we can analyze that majority of the customers i.e. 36% of them require domestic and local transportation. Followed by next majority of the customers i.e. 28% of them require labeling. 24% of them require bar coding and remaining 12% of them are demanding for pick and pack.

Inference:From the above analysis we can infer that majority of the customers of are demanding the domestic/local transportation.

7. What are your requirements or expectation in the modern warehousing system? Requirements Scanners WMS Babasabpatilfreepptmba.com

No of respondents 4 6

Percentage 08% 12% 64


A study on modern warehousing practices

RFID Material handling equipments Total

12 28 50

24% 56% 100%

Requirements 60% 50% 40% 30% Percentage

20% 10% 0% Scanners

WMS

RFID

Material handling equipments

Analysis:From the above table we can analyze that majority of the customers i.e. 56% of them need material handling equipments, 24% of them need radio frequency identification tool, 12% of them need WMS and 8% of them need scanners.

Inference:From the above analysis we can infer that majority of the customers require material handling equipments in the warehouse.

8. Type of warehouse facility you are looking for

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Types General Bounded Temperature controlled Others Total

No of respondents 40 7 03 00 50

Percentage 80% 14% 06% 00% 100%

TYPES

Analysis:From the above table we can analyze that majority of the customers i.e. 80% of them are looking for general warehouse. Followed by next majority of the industries i.e. 14% of them are looking for bounded warehouse. 06% of them are looking for temperature controlled warehouse.

Inference:-From the above analysis we can infer that majority of the customers are looking for the general warehouses. 9. Satisfied with present service provider? Service Satisfied Not satisfied Partly satisfied Completely satisfied Babasabpatilfreepptmba.com

No respondent 15 5 25 5

Percentage 30% 10% 50% 10% 66


A study on modern warehousing practices

Total

50

100%

Percentage 10%

30%

Satisfied Not satisfied Partly satisfied

50%

Completely satisfied 10%

Analysis:From the above table we can analyze that majority of the customer’s i.e.50% of them is partly satisfied. Followed by next majority of the customers i.e. 30% of them are satisfied. 10% of them are not satisfied and remaining 10% of them are completely satisfied.

Inference:From the above analysis we can infer that majority of the customers are partly satisfied with the present service providers.

10. Are you looking for a change in service provider? change in service Yes No Total

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No of respondents 23 27 50

Percentage 46% 54% 100%

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Analysis:From the above table we can analyze that majority of the customers i.e. 54% of them are not looking for the change in service provider. Followed by next majority of the customers i.e. 46% of them looking for the change in service provide.

Inference:From the above analysis we can infer that majority of the customers are not looking for the service providers.

11. Whether any warehouse facility is required? warehouse facility Yes No Total

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No of respondents 24 26 50

Percentage 48% 52% 100%

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Analysis:From the above table we can analyze that majority of the customers i.e. 52% of them don’t require warehouse facility. Followed by next majority of the customers i.e. 48% of them require the ware house facility.

Inference:From the above analysis we can infer that majority of the customers don’t require the warehouse facility.

12. Would you pay premium amount for the modern practices? pay premium Yes No Total

No of respondents Percentage 15 35 50

Percentage 30% 70% 100%

30%

Yes No

70%

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Analysis:From the above table we can analyze that majority of the customer’s i.e. 70% of them will not pay the premium amount for the modern practices. Followed by next majority of the customers i.e. 30% of them will pay the premium amount for the modern practices of the ware house.

Inference:From the above analysis we can infer that majority of the customers are not ready to pay the premium amount for the modern practices

FINDINGS FOR SERVICE PROVIDERS •

Majority of the service providers i.e. (48%) of them use heavy duty racking facility.

Majority i.e. (56%) of service providers have customers from telecommunication sector.

Majority of service providers i.e. (92%) of them are not operating temperature controlled warehouses.

Majority of service providers i.e. (52%) of them provide storage facility for customers in their warehouses.

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Majority of the service providers i.e. (78%) of them are not providing any value added services.

Majority of services providers i.e. (96%) of them are not dealing with dangerous goods.

Majority of service providers i.e. (64%) of them use outsourced software for warehouse operations.

Majority of service providers i.e. (62%) of them use warehouse management service (WMS) as modern warehousing practice.

Majority of customers i.e. (60%) of them are demanding online tracking facility in the warehouses of service providers.

Majority of service providers i.e. (100%) of them see that there is a feasibility of using modern warehouse practices in India

SUGGESTIONS FOR SERVICE PROVIDERS •

As many of them are using heavy duty racking facility, along with that it is necessary to use slotted racking facility because it will be helpful in keeping low weight products and use of modern equipments like fork lifters; scanners etc which make the work to run faster.

Since many of the service providers have customers from telecommunication sector, they should focus on other sectors like automobile and engineering goods, retail, pharmaceuticals and garments, because it will be an added income to them.

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Majority of service providers focus only on storage so it will be good enough if they provide transportation facility because the goods can be delivered in time to the desired destination when needed by customer.

As many of the customers are demanding online tracking facility, it should be provided by the service providers because it helps in easy accessing of products and also knowing its quantity stored, date and time.

Many of the customers are not providing any value added services but it should be provided because by knowing the modern services provided in the warehouse, customers will get attracted to it

Since majority of the service providers see the feasibility in using modern warehousing practices in India because it helps to do the warehouse operations faster. So the modern warehousing practices should be adopted.

FINDINGS FOR CUSTOMERS •

Majority of industries i.e. (80%) of them manufacture goods locally.

Majority of the customers i.e. (64%) of them require that there should be easy accessibility of goods in the warehouse.

Majority of respondents i.e. (60%) of inventory moves on weekly basis.

Majority of manufacturers i.e. (68%) of the goods are distributed directly to the customers.

Majority of companies i.e. (34%) of the inventories are managed by outsourcing.

Majority of customers i.e. (36%) of them require transportation service in the warehouse.

Majority of respondents i.e. (56%) of them require material handling equipments in the warehouse.

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A study on modern warehousing practices

Majority of customers i.e. (80%) of them require general type of warehouse.

Majority of customers i.e. (50%) of them are partly satisfied with the present service providers.

Majority of customers i.e. (54%) of them don’t want to change service providers.

Majority of customers i.e. (52%) of them don’t require warehouse facility.

Majority of customers i.e. (70%) of them are not ready to pay a premium amount for the modern practices.

SUGGESTIONS FOR CUSTOMERS •

As many of the customers require easy accessibility of goods in the warehouse, a proper warehouse management service should be adopted so that customers can know the location of their products.

As far as the service providers are concern they hire transporters to transport their products, as a result the customers are facing the problem of delivery. So when the service providers have their own transport facility they can deliver the goods on time. Hence service providers should have their own transportation facility.

Since majority of customers require material handling equipments in the warehouse it is very necessary to implement it. Because of some materials are heavy it is very

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A study on modern warehousing practices

difficult to move hence material handling equipments like fork lifters are used, as a result the warehousing operations can be done quickly. Hence the warehouses should have these material handling equipments.

Many of the customers demand for general type of warehouse because they handle all varieties of goods, so that it would be useful for them to keep the goods. Hence general type of warehouse should be given more prominence.

As many of the customers are partly satisfied with present service providers, so a change in service provider will be an ideal way. Hence a better service provider is selected to get the desired service from him.

Since majority of the customers are not ready to pay a premium amount for modern practices, service providers cannot offer modern equipments in warehouse hence they lack in time. So if they offer a premium amount, service providers will use modern equipments for warehousing operations as a result the operations will faster enough to save the time.

ANNEXURE QUESTIONNAIRE Dear Sir/ Madam, 1. General information. a. Company name : b. Contact name: c. Designation: d. Fax: e. e-Email address: 2. Please specify the product profile.

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3. Whether the products are imported or manufactured locally. Please specify the place? a. Imported b. Manufactured locally Place: 4. Please specify your storage requirements in warehouse a. b. c. d.

5. Nature of inventory i.e. fast moving or slow moving. a) one week

c) six months

b) one month

d) one year

6. Please specify the distribution pattern of your products. a) Direct to consumer b) Direct to Dealer 7. Currently how do you manage your inventory, in-house or outsourced service? a) If in-house Specify the WMS used. b) If it is outsourced Which inventory control they have? 8. What are your basic service requirements at the warehouse? a) Pick and Pack b) Product localization c) Labeling

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d) Bar coding e) Kitting. f) Domestic/ Local Transportation. 9. What are your requirements or expectations in the modern warehousing system? a. b. c. d.

10. What type of warehousing facility you are looking at? a. General b. Bounded c. Temperature control d. Others (specify) 11. Are you satisfied with present service provider? a) Satisfied b) Not satisfied c) Partly satisfied d) Completely satisfied 12. Are you looking for the change for the service provider? a) Yes b) No 13. Do you require any warehousing facility? If yes, please provide location and required space. a) Location: b) Space:

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Sq ft

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A study on modern warehousing practices

14. Are you ready to pay more or premium amount for the modern practices? If yes, how much a) 5% b) 10% c) 15% d) 20% 15. Can you share the warehousing cost incurred by you either for in-house or warehouse?

outsourced

16. Would you like to comment on the information which is not included in the questions?

QUESTIONNAIRE Dear Sir/ Madam, MODERN WAREHOUSING PRACTICES 1. General information. f. Company name : g. Contact name: h. Designation: i. Fax: j. Email address: 2. Please provide brief description about warehouse facility a. Location b. Space Babasabpatilfreepptmba.com

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A study on modern warehousing practices

c. Clear height d. Operation timings 3. Please give brief of the infrastructure about your warehouse a. Heavy duty racking. B. Slotted racking C. Material handling d. Others 4. What type of industries you are serving at the warehouse? a. b. c. d. 5. Do you operate temperature controlled warehouse? a. Yes b. No 6. What are services offered at the warehouse? a. b. c. d. e. 7. Do you provide any value added services? a. b. c. d. e.

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8. Do you deal with dangerous goods at the warehouse? a. Yes

b. No

9. Please provide a brief the WMS used in your system. a) In house developed

b) Readymade software.

10. What are the modern practices used at the warehouse a) b) c) d) 11. Who are your top five customers? a. b. c. d. e. 12. Please give brief on current demand from the customers for the modern practices. a. b. c. d. 13. Do you see feasibility of using modern warehouse practices in India? a) Yes

b) No

Thank U

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DATA CODE SHEET

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sl.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Q1 2 1 2 1 1 1 3 1 1 1 3 1 3 1 1 3 3 1 4 3 1 3 3 1 2 2 4 1 4 1 3 1 3 1 4 3 1 3 1 1 4 2 1 1 3 3 1 2 1 3

Babasabpatilfreepptmba.com

Q2 2 4 1 3 3 2 3 3 3 4 3 1 3 3 3 3 1 3 1 1 3 3 3 3 3 1 3 1 1 1 3 1 3 3 3 3 2 3 1 3 3 3 3 1 2 3 2 2 3 1

SERVICE PROVIDERS Q3 Q4 Q5 Q6 Q7 Q8 1 3 1 1 1 4 2 4 2 2 2 2 2 2 2 2 2 2 2 1 2 2 2 1 2 1 1 2 2 1 2 1 2 2 2 1 1 2 2 2 1 1 2 2 2 2 1 1 2 2 1 2 2 1 2 1 1 2 2 1 2 1 2 2 2 1 2 1 2 2 2 2 2 1 2 2 2 1 2 1 2 2 2 3 2 1 1 2 1 1 2 3 2 2 2 3 2 2 2 2 2 1 2 1 1 2 2 1 2 2 2 2 2 1 2 2 2 2 2 1 2 2 2 2 2 3 2 1 2 1 2 1 2 1 2 2 2 1 2 1 2 2 1 1 2 1 2 2 1 1 2 2 2 2 2 2 2 1 2 2 2 1 2 2 2 2 1 1 2 1 2 2 1 2 2 1 2 2 1 1 2 1 2 2 2 1 2 2 2 2 2 1 2 1 2 2 2 1 2 2 1 2 2 2 2 4 2 2 1 4 2 2 2 2 2 3 2 4 2 2 2 1 2 4 1 2 2 1 2 1 1 2 2 2 1 1 2 2 2 2 1 1 2 2 1 2 2 2 2 2 2 1 2 4 2 2 1 1 2 1 1 2 1 1 2 1 2 2 2 2 2 1 2 2 2 1 2 1 2 2 1 1 2 4 1 2 1 1 2 1 2 2 1 2 2 4 2 2 1 2

Q9 2 3 1 4 1 1 2 2 4 1 1 3 1 1 1 1 4 3 3 1 1 1 1 3 1 4 3 1 1 1 3 2 2 3 1 1 1 1 1 4 1 2 1 1 1 1 1 1 1 4

Q10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

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A study on modern warehousing practices

SL.NO 1 2 3 4 5 6 7 8 9 10

Q1 1 2 2 2 2 1 2 2 2 2

Q2 3 2 1 1 4 1 1 2 1 4

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Q3 1 1 4 3 2 1 1 3 3 3

FOR CUSTOMERS CODE SHEET Q4 Q5 Q6 Q7 Q8 Q9 1 2 3 3 1 4 2 2 1 3 1 3 1 2 2 4 1 2 1 1 4 2 2 1 1 2 3 4 1 2 1 2 4 4 1 1 1 2 2 1 1 3 1 1 1 4 2 3 1 2 4 4 1 4 2 2 3 4 1 3

Q10 2 2 2 1 2 2 2 2 2 2

Q11 2 1 2 1 1 2 2 1 2 1

Q12 1 2 2 2 2 2 1 1 2 2

82


A study on modern warehousing practices 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

1 1 2 2 1 2 2 2 2 1 2 1 2 2 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

1 1 3 4 1 3 1 1 1 1 2 1 4 1 1 2 1 1 1 1 3 2 4 4 1 1 1 3 1 1 2 1 4 1 1 1 1 1 1 3

2 1 1 1 1 2 1 3 1 1 4 2 1 1 2 2 1 1 3 2 1 1 1 1 2 1 1 1 1 1 1 1 2 3 1 1 1 3 1 2

2 2 2 2 1 1 1 1 2 1 1 1 1 1 1 2 1 1 2 2 1 1 2 1 1 2 2 2 1 1 2 1 1 1 1 1 1 2 1 1

2 2 2 2 2 2 2 1 1 2 2 2 1 1 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 2 2

4 1 1 2 4 4 3 4 2 2 2 4 4 4 2 1 3 2 2 2 2 2 2 4 4 1 3 2 4 3 4 4 4 4 3 3 3 4 3 4

2 2 4 4 3 4 4 4 3 4 4 4 3 3 1 1 2 4 4 4 3 4 4 2 3 4 3 1 3 4 4 4 3 4 4 4 2 4 3 4

3 2 1 1 1 1 1 1 1 2 1 1 1 1 1 1 2 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 1 1 2

1 1 3 1 1 2 1 3 3 3 1 3 3 3 3 1 1 1 3 1 3 3 1 3 3 3 4 4 3 2 1 4 2 3 3 3 3 3 1 3

1 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 2 1 2 1 2 2 1 1 1 2 2 1 2 2 1 2 2 1 1 1 2 1 2 1

1 1 2 2 1 2 2 1 2 2 2 1 2 2 1 1 2 1 2 1 1 2 1 1 1 2 1 2 1 2 2 1 1 2 1 1 2 2 2 2

2 2 2 1 1 1 1 2 2 2 2 2 2 1 2 2 2 1 1 2 2 1 2 2 2 1 2 2 2 2 2 2 2 1 2 2 1 1 2 2

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A Project Report on modern warehousing practices at Expiditors