- STUDY OF WD INFRASTRUCTURE & - HOW TO REDUCE TURN AROUND TIME FOR ITC WSP VEHICLE IIP-INDUSTRY INTERNSHIP PROGRAMME REPORT
ORGANIZATION ITC LIMITED.
K. Aravind (16010121135)
[email protected] pg. 1
ITC LIMITED
MASTER OF BUSINESS ADMINISTRATION INDUSTRY INTERNSHIP PROGRAMME (IIP)
Study on ITC ltd. Hyderabad
Submitted by K. Aravind 16010121135
In partial fulfilment of the Course- Industry Internship Programme – IIP in Semester II of the Master of Business Administration (Batch of July 2016-18 )
Under the Guidance of Prof. N. Arun Kumar (Associate professor)
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DECLARATION
This is to declare that the report titled “Study of WD Infrastructure & How to Reduce Turnaround Time (TAT) for ITC WSP vehicle” has been made for the partial fulfilment of the Course: Industry Internship Programme
(IIP) in Semester II by me at ITC ltd. under the guidance of Mr. Marisetty NagaSai as Industry Guide & Prof. N. Arun Kumar as faculty guide.
I confirm that this report truly represents my work undertaken as a part of my Industry Internship Programme (IIP). This work is not a replication of work done previously by any other person. I also confirm that the contents of the report and the views contained therein have been discussed and deliberated with the faculty guide.
Signature of the Student:
Name of the Student: K. ARAVIND
Registration No: 16010121135
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CERTIFICATE
This is to certify that Mr. K. ARAVIND, Registration. No. 16010121135 has completed the report titled “Study of WD Infrastructure & How to Reduce Turnaround Time (TAT) for WSP vehicle under my guidance for the
partial fulfilment of the Course: Industry Internship Programme (IIP) in Semester II of the Master of Business Administration.
Signature of Industry Guide & Date:
Name of the Industry Guide: Mr. Marisetty Nagasai
Signature of Faculty Guide & Date:
Name of the Faculty Guide: Prof. N. Arun Kumar
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TABLE OF CONTENTS
S. No.
TOPIC
Pg. No.
1
Executive summary
6
2
Introduction
7
2.1
Industry overview
9
2.2
Company overview
26
3.1
Objectives of the study
46
3.2
Methodology
47
4
Observations & Analysis
49
5
Findings
68
6
Suggestions
69
7
Conclusions
71
8
Key Learning experience and Contribution Contribution to the Organization
72
9
Annexure
73
10
References
73
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1. EXECUTIVE SUMMARY
This report is about my internship program with ITC Ltd under the ware house and logistics management division. In this comprehensive report, I have discussed about WD Infrastructure and Logistics division in ITC ltd which I have observed and perceived during my internship. The logistic industry is said to be the blood of any company without which it will be very difficult for any company to function. For Instance, the simple example that can be given is that if the required good doesn’t reach the customer on time, then the business
will be considered to be a flop business in this place logistics comes into picture. The warehouse is basically a place where the goods are kept for storage. Warehouse provides a central location for receiving, storing and distributing products. Warehousing can be classified into Outbound and Inbound logistics. Inbound logistics function prepares the goods for storage whereas Outbound Logistics consolidate, pack and ship orders provide economic and service benefits to both the business and customers on the whole. During my internship program, by visiting each WD (Wholesale distribution) point and studying the infrastructure of each WD point regarding the details of WD manpower, details about sales force automation and vehicle Planning, parking place and allotment of Stocks, Placement of DND Goods, Number of Docks Available, Number of Work Units involved in Unloading and loading of the vehicle. To Calculate turnaround time (TAT) of the ITC vehicle which visits the certain WD points in the city from WSP and by taking some sample WD centres across Hyderabad and secunderabad and suggest the better alternatives on how to reduce the turnaround time (TAT) for WSP vehicle. The Methodology followed in acquiring the data from some WD points is through Observational Method at the WD points and through Face to Face Interview with the couple of work units and WD Area Executive. Expected learning outcome from f rom this project is chance of interacting to the work units and the practicality of how Warehouse works. I had worked with the various WD Area Executives. The details about this team and the department will be mentioned in the report as well. As the main purpose of the internship is to learn from the practical environment and also apply the theoretical concepts in a real-world scenario in order to tackle the problems using the knowledge and skills acquired during the course done in Alliance University, in this report the analysis of current situation of the company and its standing in the industry for the particular division will be shown. This internship report will also cover the aspects of Logistics and warehouse Department in general ITC ltd. and in the aspects of the company that I had worked for. pg. 6
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2.INTRODUCTION
INTERNSHIP OBJECTIVES: The reason I choose to join ITC Ltd and the Warehouse and Logistics Division is majorly to experience the various Operations Concepts and to know the Working of Warehouse Management Techniques followed and used by the company. I wanted a new challenge and to learn, improve, and develop new set of skills. During my internship, two major competencies were central:
Study of WD Infrastructure: - studying the infrastructure of each WD point regarding the details of
WD manpower, details about sales force automation and vehicle Planning, parking place and allotment of Stocks, Shipment Planning, Placement of DND Goods, Number of Docks Available, Number of Work Units involved in Unloading and loading of the vehicle. Which are involved in Channel Design of Sales and Distribution of ITC.
Reducing the Turnaround Time of ITS – WSP vehicle: - by calculating the operating time for Unloading
the WSP vehicle at various WD points with the involvement of Work units. Proper Suggestions made by following the Time study
Procedure of Time Study:
Identifying the job to be timed and operations to be timed.
Select worker for study
Collecting the equipment and arrange machinery required to conduct time study and ensure accuracy in recording time
Explaining to the worker the improved working procedure and use of tools and fixtures
Breaking the job into operations and operations into elements and writing them in a proper format
Conducting the observations and recording them on the time study form
Rating the performance of the worker
The beneficiary part for the ITC with this project is, there are four Shifts for shipment logistics maintained at the warehouse of ITC (WSP), Warehouse operates 24*7.
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These shift timings would be i.
2:00AM to 8:00AM
ii.
8:00AM to 2:00PM
iii.
2:00PM to 8:00PM
iv.
8:00PM to 2:00AM
Here by 2:00PM WSP vehicle should reach to Warehouse start the next shift of shipment, but at most the WD points unloading of this vehicle is getting late due to that WSP vehicle ve hicle is reaching to warehouse around 2:30PM 2:30 PM to 3:00Pm. In fact, there are some cases where it is reaching near to 4:00PM, due to this delay at one Stop of shift it is effecting further shift shipments all the day long. So, by calculating the turnaround time and making some suggestions in overcoming the delay helps in better operations at Warehouse and study of WD infrastructure also plays a role in calculating Turnaround time These are some of the important WD Points where WSP receives rece ives higher order from: 1. Shanmuganand & Sons 2. Kumarvelu Brothers 3. Shree Khiwaj Traders 4. TKM Agency 5. Sri Vishnu Franchiser Private limited 6. Sri Vari Associates 7. MRL Trading Company 8. Advanced Technology Services 9. Sree Ventakeshwara Associates 10. DE- Spaark Agencies 11. Denakara Enterprises
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2.1 INDUSTRY OVERVIEW
GLOBAL SCENARIO
As the foods business division of ITC Ltd exports its goods to key geographies such as North America, Africa, Middle east and Australia, talking about the global scenario for the ITC is a necessity in this report. In the global scenario, there has been a less increase in the operating margin of some of the biggest firms in the industry. Fast-moving consumer goods are are the goods that are traded very frequently leading to high volume, low price because of repeated purchases and are fastest to leave the supermarket or hypermarket shelves. It is a market that is highly sensitive to changes in disposable income or in other words, very demand elastic. They may be categorized as durable and non-durable when classified according to their shelf life such as detergents, cosmetics, packaged foods, personal hygiene products, stationery, toiletries etc. Some of the management executives of big FMCG brands expect the supplier price to soar in the coming time periods but 22% of them choose to remain on the risk averse side expecting no change to occur. The optimistic ones are leaving no stones unturned and are striving to introduce new launches in the market to tap more of the niche customers, spending more on capital goods to enhance manufacturing capabilities and henceforth drive the forecast of continuous growth prospects in the FMCG industry.
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GLOBALISATION AT A GLANCE
Contribution of more than US$ 2 billion to India's exports in the last decade.
ITC's International Business Division is one of the largest Indian exporters of Agri-products Agri-products and is a preferred supply chain partner to companies companies like Coca Cola, Mitsubishi etc.
Markets its own brand of cigarettes in the US and Middle East
Largest exporter of coated boards from India
INDIAN OPERATIONS AND MARKET SHARE OF ITC . ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14
billion and a turnover of over US $ 9.4 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC will set up a new tobacco processing department (TPD)because the increased production will make it economical to process tobacco on site. The Company has launched a project e-Choupal in Bhopal to Webenable farmers to make a beginning in agricultural e-trade. ITC Ltd its entry into retailing business by launching branded leisurewear apparels as part of its diversification strategy into new areas. The Company is hiving off its Infotech services businesses in India, the US and UK and merging them into a separate wholly-owned subsidiary. The IT division has entered into agreements with Compaq and expand the IT business.
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The company set up the Lifestyle Retailing Business Division. A strategic Business Unit for the greeting cards business was set up under the Packaging and Printing Division. - ITC has launched Wills Sport, a full range of internationally styled premium wear for men and women. - ITC Infotech Ltd., the recently-launched it subsidiary of ITC Ltd., has become one of the select software organisations in the world to achieve the distinction of being certified atLevel-5on the prestigious Capability Maturity Model. Tobacco Company ITC launched a website, billed as `one stop terminus' for international customers of agricultural commodities. The website, ww.itcibd.com, will provide information on trading of key commodities. – The Company have set up units in the north-eastern States to avail of special incentives relating to Central excise duties. As the foods business division of ITC Ltd exports its goods to key geographies such as North America, Africa, Middle east and Australia, talking about the global scenario for the FMCG industry is a necessity n ecessity in this report. In the global scenario, there has been a less increase in the operating margin of some of the biggest firms in the industry. Fast-moving consumer goods are the goods that are traded very frequently leading to high volume, low price because of repeated purchases and are fastest to leave the supermarket or hypermarket hy permarket shelves. It is a market that is highly sensitive to changes in disposable income or in other words, very demand elastic. They may be categorized as durable and non-durable when classified according to their shelf life such as detergents, cosmetics, packaged foods, personal hygiene products, stationery, toiletries etc. Packaging and branding is imperative to the FMCG products as it is an important element for positioning the product correctly in the minds of the buyer. It signifies the social and economic status of the buyer and gives him h im something to relate to. The market for FMCG products can be safely assumed to be stable in countries where there are no severe fluctuations in the per capita disposable incomes. These can be provided only for highly developed nations like the UK and the US and these are expected to emerge as prominent targets for the same reasons. The following are the trends that are followed in the FMCG industry:
1. ALIGN PORTFOLIO FOR GROWTH: 3G’s budgeting may have peaked interest throughout the industry, but copycat cost cutting is not necessarily
an effective growth strategy. Instead of making cuts across all brands to reduce costs, analyse your portfolio to see whether it is coherent. In other words, ask whether the products you offer align logically with the market categories and niches your company is focusing on. By identifying the rationale behind your portfolio, you can avoid reacting opportunistically to changing markets with wi th hastily developed brand extensions, new products, or acquisitions. pg. 11
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2. PAY ATTENTION TO SMALL BRANDS THAT DELIVER BIG: Small players — those with annual sales of less than $1 billion — are outperforming the competition in 18 of the top 25 categories, including the largest and most consolidated, such as dairy, bakery, snacks, and ready meals. Consumers choose these brands because they offer authenticity (The Body Shop), a connection to local growers (Cabot Creamery), the promise of healthy h ealthy ingredients ( Bob’s Red Mill and Annie’s Home grown), or a quirky story (Ben & Jerry’s). From 2009 to 2012 in packaged foods and from 2008 to 2011 in beverages, small
players grew revenue about three times as fast as the overall category. Specifically, in packaged foods, small players gained 1.7 percent of market share, while large players saw their market m arket share decline 0.7 percent.
3. THINK GLOBAL ACT LOCAL (GLOBALIZATION): A “one-size-fits-all” approach will no longer work in the global market. Brands that want to do well in eme rging
economies in Asia, Latin America, and the Middle East, where demographic trends offer more potential for growth than developed markets, must tailor their products to local demands. de mands. Take, for example, the challenges of local distribution, especially in countries with large rural areas, such as India and Vietnam. Colgate sells its penetration in oral care and household products to more than half of the world’s po pulation (65 percent global penetration in 2013, according to Kantar World Panel’s Brand Footprint ranking) because it has built awareness and sales in
emerging nations with small pack sizes, which encourage trial and are more affordable. Heinz tackles distribution challenges by acquiring and expanding existing local brands. pg. 12
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4. INDIAN SCENARIO:
A. EVOLUTION OF THE INDIAN FMCG SECTOR: 1. FMCG is the 4 th largest sector in the Indian economy 2. Household and Personal care is the leading segment accounting, accounting for 50% of the overall market. Hair care (23%) & Food & Beverages (19%) comes next in terms of market share 3. Growing awareness, easier access & changing lifestyles have been the key growth drivers for the sector 4. Retail market in India is estimated to reach USD1 trillion by 2020 from USD600 billion in 2015, with modern trade expected to grow at 20 per cent per annum, which is likely to boost revenues of FMCG companies 5. People are gracefully embracing Ayurveda products, which has resulted in growth of FMCG major, Patanjali Ayurveda, with a m-cap of USD 14.94 billion. The company aims to expand globally in the next 5 to 10 years.
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B. EXECUTIVE SUMMARY:
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C. MARKET SEGMENTS:
As shown in the above flow chart, the Indian FMCG industry is broadly classified into three categories. Foods and beverages is the category that we will be focusing upon majorly as the foods business division of ITC is where the internship took place.
D. URBAN AND RURAL INDUSTRY BREAK-UP: Accounting for a revenue share of around 60%, urban segment is the largest contributor to the overall revenue generated by the FMCG sector in India & recorded a market size of around USD29.4 billion in 2016. Semi-urban and rural segments are growing at a rapid pace; & accounted accou nted for a revenue share of 40 per cent
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In the overall revenues recorded by FMCG sector in India. In the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India FMCG products account for 50 per cent of total rural spending.
E. MAJOR PLAYERS: According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Unilever. The top ten India FMCG brands are: 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestlé India 4. AMUL 5. Dabur India 6. Kellogg’s 7. Haldirams 8. Britannia Industries 9. Procter and Gamble Hygiene and Health care. 10. Arico Industries.
F. STRONG GROWTH IN THE INDIAN FMCG SECTOR
The FMCG sector in India generated revenues worth USD47.3 billion in 2015 2 015 Over 2007-16F, the sector is expected ex pected to post CAGR of 11.9 per cent ce nt in revenues pg. 16
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In 2016, revenues for FMCG sector is expected e xpected to reach USD49 billion
During 2015-16, seven leading FMCG companies in the country have fared better than their multinational peers, in terms of revenue growth. The combined revenue of 7 leading Indian FMCG companies during 2015-16 stood at USD 11,066.46 million .
In the long run, with the system becoming more transparent & easily compliable, demonetisation is expected to benefit organised players in the FMCG industry
G. COMPETATIVE ANALYSIS (PORTERS FIVE FORCES ANALYSIS):
Competitive Rivalry:
Private label brands by retailers are priced at a discount to mainframe brands limits competition for the weak brands. Highly fragmented industry as more MNCs are entering
Threat of new entrants:
Huge investments in setting up distribution network and promoting brands. Spending on advertisements is aggressive.
Substitute Products:
Presence of multiple brands. Narrow product differentiation under many brands Price war.
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Bargaining Powers of Suppliers:
Big FMCG companies are able to dictate the prices through local sourcing from a fragmented group of key commodity suppliers.
Bargaining power of Customers: Customers:
Low switching cost induces the customers’ product shift. Influenc e of marketing strategies. Availability of same
or similar alternatives.
H. STRATEGIES ADOPTED: Promotions And Offers:
FMCG companies are trying to influence consumers with intelligent deals. Firms like ITC IT C offers combo deals to the consumers. For example, in the case of soaps & cosmetics; 4 soap cases are offered at the price of 3, selling the range of deodorants for men & women at a discounted price.
Research Online And Purchase Offline:
The internet enables consumers to make their own research on the kind of products or commodities they want to purchase. 1 in 3 FMCG shoppers goes online 1st & then to the stores. Almost half of the automobile consumers follow Research Online Purchase Offline (ROPO) method. pg. 18
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Product Innovation:
Indian consumers have become choosy & are less likely to stay loyal to a brand. Colgate-Palmolive has launched a toothpaste for the inflammatory gum problem of pyorrhoea. ITC is coming up with new multigrain Bingo. Dabur has launched its sugar free variant for Chyawanprash in India. As of March 2017, ITC, which ventured in coffee & chocolates segment under the Fabelle and Sunbean brands is planning to launch another premium range of items. By doing so, the company is planning to compete with brands like Nestle & Cadburys.
Customisation:
Product Flanking: Introduction of different combinations of products at different prices, to cover as many market segments as possible. Different types of same product for different users’ population. For example:
Calcium Sandoz & Calcium Sandoz Women & Horlicks for older women, Junior Horlicks. Emami, with a presence in over 60 countries across the world, has decided to rework on its overseas strategy by planning manufacturing and acquisitions in overseas markets. The company plans to re-work on its product portfolio by getting into new categories with higher buying preference and revamp its distribution networks.
I. MACRO ENVIRONMENT ANALYIS: Political Environment: Environment:
There have been a lot of initiatives from the government to ensure that there has been development of the rural population. Schemes such as loan waivers, NREGA programmes etc. have been used to ensure that the rural masses have been empowered and that there is more purchasing capacity with the citizens. The government has also ensured that there have been a lot of FDI inflows in this industry. 100 % investment is allowed in single brand retail and 51% in multi brand retail. Social Environment: Environment:
As seen earlier in the growth trends in the FMCG industry, there has been a change in the lifestyles of the population of India. There has also been an increase in the desire to experiment with brands and innovative products. This has led to the company’s increase in vestments in research and development
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Economic Environment
The above graph clearly shows that there has been an increase in the nominal per capita income for Indians. The graph also shows that the increase will continue to happen in the next three years as well.
Technological Environment:
There has been a rapid increase in the technology available for manufacturing the products and packaging packaging the products. In some ways,, the latest technology in manufacturing has ensured that the cost of production and time taken to produce is reduced, but the improvement in packaging( Tetra Pack) has made sure that there is a slight increase in the cost of production.
Legal Environment:
Goods and Service Tax(GST) which will be implemented from the 1st June is something which the entire FMCG industry is eagerly waiting for. The tax on the goods will be 20%. MCG sector wants an early rollout of the Goods‐and‐Services tax (GST) so as to reduce supply chain constraints, improve competitiveness of FMCG
companies against unorganised players. There has also been a relaxation on the licensing rules. This has enable betterment for all the players in the FMCG industry. pg. 20
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KEY MERGERS & ACQUISATION DEALS IN THE INDUSTRY:
TARGET NAME(SEGMENT NAME(SEGMENT))
ACQUIRER
MERGER/ACQUISITION
NAME(SEGMENT)
Godrej Consumer Products ltd
Kenyan Co Charm Industries Acquisition
Kesh King
Emami
Acquisition
Johnson & Johnson (Savlon, Shower
ITC
Acquisition
Hindustan Unilever Ltd
Unilever PLC
Acquisition
Namaste Group (personal care)
Dabur food
Acquisition
to Shower)
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INDUSTRY REPORT The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and 60s, military was the only organization which used logistics. The scope of logistics has been extended beyond the army, as it has been recognized as one of the important tools for developing competitiveness. Competitive advantage means the company has the ability to differentiate itself, in the customer’s eyes, and also is operating at a
lower cost and greater profit. Logistics facilitates in getting products and services as and when they are needed and desired to the customer. It also helps in economic transactions, serving as a major enabler of growth of trade and commerce in an economy. Logistics has come to be recognized as a distinct function with the rise of mass production systems. Production and distribution were earlier viewed as a sequential chain of extremely specialized activities. The role of logistics is to ensure availability of all the required materials before every step in this chain. Obviously inventory of raw materials, semi-finished and finished goods is a must across this chain to ensure its smooth functioning. The concept of logistics has its base upon the systems approach. There is a single chain, with flow of materials starting from the supplier, then to the plant and finally to the end customer, and also these activities are done sequentially in order to achieve customer satisfaction at low cost. For this to be successful there has to be co-ordination in the activities of the department. With reference to an organization, an organization gets a concrete shape due to its structure.
DEFINITIONS OF LOGISTICS: The American Council of Logistics Management defines logistics as “the process of planning , implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customers’ requirements”. Philip Kotler defines logistics as “planning, implementing, and controlling the physical flows of materials and finished goods from point of origin to point of use to meet the customer’s need at a profit”.
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LOGISTICS IN INDIA: Currently the annual logistics cost of the world is estimated about USD 3.5 trillion. India spends around 14.4% of its GDP on logistics and transportation as compared to less than 8% by the other developing countries. Indian freight transport market is expected to grow at a CAGR of 13.35% by 2020 driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors. Freight transport market in India is expected to be worth US$ 307.70 billion b illion by 2020. In India Road Freight constitutes around 63% of the total freight movement consisting of 2.2 million heavy duty trucks and 0.6 million light duty trucks annually. The road freight movement is expected to increase at a CAGR of 15%. 15 %. The Sea Freight consists of around 9% of the total freight market and is mainly used as a major mode for imports and exports. The air freight consists of around 1% of the total freight market in India which will grow around 12.5% CAGR over the next 5years. Companies in India currently outsource an estimated 52% of logistics and 3PL represents only 1% of logistics cost. As of now, the 3PL activity is limited to only few industries like automotive, IT hardware, telecom and infrastructure equipment. According to the survey conducted by the Transport intelligence in 2013 ranks India as the second most attractive logistics market in the future after china. In India, about 110 new logistics parks are expected to be operational with an estimated cost of USD 1 Bn. Hence, India offers huge opportunities in development of logistics services including warehousing, cold storage, shipping, ports and multi modal transportation, etc. The Domestic Cargo Transport Industry in India comprises of several modes including Roadways, Railways, Inland Waterways, Coastal Shipping and Airways. Since the industry is gradually dealing with and surpassing its shortcomings, it is bound to come closer to the realization of its potential in the future. The same in turn will not only augment the competitiveness of the country, but will also create more opportunities for domestic businesses and foreign enterprises operating in India. Freight transport market in India is expected to be worth US$ 307.70 billion by 2020. In India Road Freight constitutes around 63% of the total freight movement consisting of 2.2 million heavy duty trucks and 0.6 million light duty trucks annually. The road freight movement is expected to increase at a CAGR of 15%. The Sea Freight consists of around 9% of the total freight market and is mainly used as a major mode for imports and exports. The air freight consists of around 1% of the total freight market in India which will grow around 12.5% CAGR over the next 5 years with the lower turnaround time needed for delivery such as 24-hour delivery de livery needed by the E-commerce sector. In developing countries like India, an efficient logistics infrastructure can reduce the cost of transportation which in turn can contribute directly to economic development. pg. 23
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CHALLENGES FACED BY LOGISTICS INDUSTRY IN INDIA: TRANSPORT RELATED CHALLENGES: In India road has become predominant mode of transportation of freight cargo. Estimate of the modal movement of cargo highlights that in India nearly 60.2% of the cargo is moved by road, 32.1% by rail, and rest by the coastal shipping, airways and inland waterways. Pipelines constitute a very m inor proportion. It is recognized that movement of long haul bulk traffic by road is less efficient than by rail. But road is still preferred over rail because:
IMPORTANT RAIL NETWORKS ARE OVER SATURATEDThere has been little improvement in the track infrastructure since independence. While route kilometre has grown only at a CAGR of 3%, incorporating additional lines on existing routes has not fared much better growing at a low CAGR of 6.6%. During the same period freight and passenger traffic has grown at a CAGR of nearly 55%. This had led to most high-density corridors becoming oversaturated.
RAIL FREIGHT TARIFFS ARE HIGHIndian railways follow a policy of subsidizing passenger tariff by freight tariff. This has resulted in sharply rising trend in railway freight rate over the years compare to little increase in passenger tariff rate. The result of this has been that Indian rail freight rates have already become one of the highest in the world.
TRANSIT TIMES ARE LONG AND UNCERTAIN Freight traffic is frequently subordinated to passenger traffic on the railway network. This results in a freight train taking as much as 6-8 days for a journey of 2000kms. Also, there is no guarantee on the transit time for freight trains.
RAILWAY CARRIAGE NOT EASY FOR INDUSTRY WHICH CANNOT PROVIDE FULL TRAIN LOADSRailways have a preference for customers who can provide full train load as unlike in some other countries, railways in India no longer run mixed trains which can carry different types of cargo due to operational inefficiencies.
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WHILE ROAD MOVEMENT IS PREFERRED TO RAIL, ROAD MOVEMENT HAS ITS OWN SET OF CHALLENGES. ROAD NETWORK COVERAGE-
Freight movement in India is dependent on national highways. While NH constitutes only about 2% of the road network of India, they carry 40% of total traffic. As a result, most of these highways are severely congested resulting in freight travelling only a third of the distance compared to developed countries. POOR ROAD QUALITY-
The road quality in India, on the NHs as well as the roads is improving but is still poor in many locations. Estimates suggest that motor able roads are still less than 10% of the total road network. HIGH LEVEL OF FRAGMENTATION OF THE TRUCKING INDUSTRY-
The trucking industry in India is largely fragmented and in the hand of small truck operators. Estimates suggest that nearly 70% of the truck owners in India own between 1-5 trucks. Due to this there is fierce competition amongst operators leading to truck owners resorting to overloading to recover investments. MULTIPLE CHECKPOINTS-
Trucks in India have to pass through multiple check points in their journey. Trucks have to stop at state borders, for payment of toll taxes, for RTO inspections etc.
In the ITC Terminology Logistics Logistics Shipment Is Carried Out by Four Types
K1 – SHIPMENT FROM MANUFACTURING UNIT TO WD (WHOLESALE DEALERS) – GENERALLY, ONLY ATTA IS SHIPPED IN K1 K2 – SHIPMENT FROM MANUFACTURING UNIT TO WSP (WAREHOUSE SERVICE PROVIDER) K3 – SHIPMENT FROM WSP TO WD K4 – SHIPMENT FROM WD TO OUTLETS (RETAILERS, WHOLESALERS) pg. 25
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2.2 COMPANY OVERVIEW ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership, progressively Indianite, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited, ‘where ‘ITC’ is today no longer an acronym or an initialised form.
A MODEST BEGINNING The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. J. L. Nehru Road) Kolkata, for the sum of RS. 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become bec ome one of Kolkata's most venerated landmarks.
SBU- STRATEGIC BUSINESS UNITS OF ITC
FMCG
HOTELS
IT
ITC PAPER BOARDS
PACKAGING
AGRI BUSINESS
pg. 26
COMPANY HISTORY
1910: INCORPORATED AS IMPERIAL TOBACCO COMPANY
1925: PACKAGING AND PRINTING
1970: INDIA TOBACCO COMPANY LIMITED
1975: HOSPITALITY SECTOR
1976: ITC LTD
1985: NEPAL SUBSIDIARY
1979: PAPERBOARDS BUSINESS
1990: AGRI BUSINESS
2000: LIFESTYLE RETAILING AND IT
2001: PACKAGED FOODS
2002: EDUCATION AND STATIONERY, AGARBATTI AND SAFETY MATCHES
2005: PERSONAL CARE PRODUCTS pg. 27
2010: CIGARS
COMPANY DETAILS
VISION: Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company's stakeholders.
MISSION: To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value.
CORPORATE STRATEGIES: ITC is a board-managed professional company, committed to creating enduring value for the nation and the shareholder. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems.
ITC’S CORPORATE STRATEGIES ARE: a) Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. b) Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. c) Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. d) Ensure that each of its businesses is world class and internationally competitive. e) Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses.
f) Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses.
pg. 28
COMPANY ORGANIZATION CHART
Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the whole-time Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive exe cutive freedom, and the need for supervision and control.
pg. 29
ITC LIMITED
ITC LEADERSHIP
GOVERNANCE STRUCTURE: Flowing from the philosophy and core principles of governance, Corporate Governance in ITC shall take place at three interlinked levels, namely
Strategic supervision by the Board of Directors.
Strategic management by the Corporate Management Committee headed by the Chief Executive Officer of the Company (CEO).
Executive management by the Divisional / SBU / Vertical / Shared Services Chief Executive / Chief Operating Officer - Business Vertical assisted by the Divisional / SBU / Vertical / Shared Services Management Committee.
pg. 30
ITC LIMITED
It is ITC's belief that the right balance between freedom of management and accountability to shareholders can be achieved by segregating strategic supervision from strategic and executive management. The Board of Directors (Board) as trustees of the shareholders will exercise strategic supervision through strategic direction and control, and seek accountability for effective strategic management from the Corporate Management Committee (CMC). The CMC will have the freedom, within Board approved direction and framework, to focus its attention and energies on the strategic management of the Company. The Divisional / SBU / Vertical / Shared Services Chief Executive / COO - Business Vertical assisted by the Divisional / SBU / Vertical/ Shared Services Management / Executive Committee, will have the freedom to focus on the executive management of the business/ shared services. The 3-tier governance structure thus ensures that:
Strategic supervision (on behalf of the shareholders), being free from involvement in the task of strategic management of the Company, can be conducted by the Board with objectivity, thereby sharpening accountability of management.
Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energised; and
Executive management of the divisional business and shared services free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and effectiveness of its business / shared services. pg. 31
ITC LIMITED
QUALITY QUAL ITY ASSUR ASS URANCE ANCE::
RELENTLESS COMMITMENT TO QUALITY Pursuing the Company's relentless commitment to quality, each business is mandated to continuously innovate on processes and systems to deliver superior competitive capabilities. All manufacturing units of the Company have ISO quality certification. All manufacturing units of the Branded Packaged Foods businesses (including contract manufacturing units) and hotels have stringent food safety and quality systems. All Company owned units / hotels and almost all contract manufacturing units of the Branded Packaged Foods businesses are certified by an accredited 'third party' in accordance with 'Hazard Analysis Critical Control Points' (HACCP) methodology. Additionally, the quality of all FMCG products of your Company is regularly monitored through 'Product Quality Ratings Systems' (PQRS).
SUCCESS STORY OF ITC a. ITC is one of the foremost company in private sector in terms of sustained value creation, operating profits & cash profits. b. It is the only India-based FMCG company to feature in Forbes 2000 List. c. ITC is a market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging & Agri Exports. d. The company is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care & Stationery. e. Its Agri-Business is one of India's largest exporters of agricultural products. f.
ITC’s total sales increased at a CAGR of 4.29 per cent between FY11 & FY16 to reach net sales of
USD5,572.1 million.
pg. 32
ITC LIMITED
STATEMENT OF PROFIT & LOSS
Above is the profit and loss loss statement of ITC Ltd as of 31st March 2017 as below.
pg. 33
ITC LIMITED
PRODUCTS & SERVICES OFFERED BY THE COMPANY: FMCG: AASHIRVAAD: Atta, Salt, spices, ready to eat meals and Instant mixes AASHIRVAAD SUGAR RELEASE CONTROL ATTA:
AASHIRVAAD READY MEALS:
Aashirvaad Ready Meals – a range of ten of the most popular Indian dishes in a ready to eat format. A unique food processing technology and a 4-layer international pouch, combine to provide a wholesome dish, carefully preserved. This unique technology ensures freshness and taste is maintained without the use of preservatives - 100% natural! Just heat and eat.
pg. 34
The range comprises of the following dishes:
Aloo Mutter
Pav Bhaji
Mutter Paneer
Navratan Korma
Palak Paneer
Dal Makhani
PindiChana
1. Rajma Masala 2. Yellow Dal Tadka 3. Pongal
AASHIRVAAD INSTANT MIXES: Convenience and authentic taste now has a new name with the Aashirvaad Instant Mix range. This range, launched in March '06, now includes Gulab Jamun, Rava Idli, Rice Idli and Rice Dosa. Aashirvaad Instant Mixes promise the discerning Indian homemaker perfect tasting dishes, consistently. The Rava idli Mix is available in 500g pack and rest of the products p roducts are available in 200g packs.
pg. 35
ITC LIMITED
AASHIRVAAD SPICES: ITC forayed into the branded spices market with the launch of Aashirvaad Spices in May 2005. The offering currently consists of Chilli, Turmeric and Coriander powder in SKUs of 50g, 100g, 20 0g and 500g each.
SUNFEAST: - Different products under Sunfeast are as below o
Sunfeast Farmlite Digestive
o
Sunfeast Farmlite
o
Sunfeast Dark Fantasy Choco Fills
o
Sunfeast Dark Fantasy Choco Fills Luxuria
o
Sunfeast Delishus Expressions
o
Sunfeast Delishus Nuts and Raisins
o
Sunfeast Mom’s Magic Rich butter
o
Sunfeast Snacky
o
Sunfeast Sweet and Salt
o
Sunfeast Milk Magic
pg. 36
ITC LIMITED
BINGO: 1. Bingo! Yumitos 2. Bingo! Yumitos Original Style – Salt and Chilli Sprinkled 3. Bingo! Mad Angles 4. Bingo! Tedhe Medhe 5. Bingo! Tangles
KITCHENS OF INDIA: 1. Vegetarian Curries 2. Non-Vegetarian Curries 3. Biryanis 4. Halwas 5. Kitchens of India Masala Mixes
YIPPEE! NOODLES AND PASTAS: 1. Yippee! Noodles 2. Tricolor Pastas 3. Sunfeast Pastas
B NATURAL: 1.
Mixed Fruit Merry
2.
Guava Gush
3.
Litchi Luscious
4.
Orange Oomph
5.
Pineapple Poise
6.
Mango Magic
7.
Apple Awe
8.
Kinnow
9.
Jamun Joy pg. 37
ITC LIMITED
Other FMCG products like Mint-o, Candyman, GumOn, Fabelle
CIGARETTES: ITC's highly popular portfolio of brands includes 1. Insignia, 2. India Kings 3. Classic 4.
Gold Flake
5. Navy Cut 6. Scissors 7. Berkeley 8. Bristol 9. Flake
Life style Retailing: 1. Wills Lifestyle 2. John Players
PERSONALCARE PRODUCTS: 1. Essenza DI Wills 2. Vivel 3. Fiama 4. Engage 5. Superia 6. Vivel Cell Renew 7. Savlon 8. Shower to Shower pg. 38
ITC LIMITED
EDUCATION AND STATIONARY, AGARBATTIS & SAFETY MATCHES: 1. Classmate 2. Paperkraft 3. Mangaldeep Agarbattis 4. AIM Safety Matchsticks
ITC HOTELS:
ITC Grand Bharat in Gurgaon
ITC Grand Chola in Chennai
ITC Maurya in Delhi
ITC Maratha in Mumbai
ITC Sonar in Kolkata
ITC Grand Central in Mumbai
ITC Windsor & ITC Gardenia in Bengaluru
ITC Kakatiya in Hyderabad
ITC Mughal in Agra
ITC Rajputana in Jaipur
AGRI BUSINESS:
1. Feed Ingredients - Soya meal 2. Food Grains - Wheat & Wheat Flour, Rice, Pulses, Pu lses, Barley & Maize 3. Marine Products - Shrimps and Prawns 4. Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products 5. Coffee
pg. 39
ITC LIMITED
INFORMATION TECHNOLOGY:
In today's age of digital disruption, ITC Infotech has adopted a '5D' framework of excellence to serve its clients better:
1. DOMAIN Led: ITC Infotech's solutions & services are powered by deep Domain understanding and practitioner's expertise in focus industries
2. DATA: Data Infra to Interventions, ITC Infotech enables clients to leverage the power of Data with actionable insights and prescriptive analytics
3. DIGITAL ready: ITC Infotech provides Digital solutions to help clients transform their business and enhance customer engagements
4. DESIGN expert: ITC Infotech provides UI/UX, high-end engineering design solutions and services to market-leading engineering organizations worldwide
5. DIFFERENTIATED DELIVERY: With excellence forming the corner stone of each engagement, ITC Infotech is committed to customized Delivery: Outcome-based, BOT, JVs, As-a-service and Subscription models.
PACKAGING: ITC's Packaging Business has 3 major product lines i.
Carton Board Packaging a. Printed Cartons b. Fluted Cartons
ii.
Flexible Packaging
iii.
Tobacco Packaging pg. 40
ITC LIMITED
J. DEDICATION TOWARDS INNOVATION: Innovation has always been integral to ITC's DNA, the foundation for the unique and differentiated value propositions that it has crafted over the years. Since I983, ITC R&D Centre in Bengaluru has played a crucial role in building this capability, creating products and solutions that sustain the Company's competitive advantage. Now rebranded as ITC Life Sciences and Technology Centre, this new beginning highlights its integral part in keeping the Company future-ready and driving its game-changing businesses of the future. It also reflects the Centre's new mandate- to go beyond supporting and improving ITC's existing products and services and create innovations that not only meet but anticipate consumer needs. ITC's ambitious agenda of sharpening its competitive edge in an enormously challenging marketplace demands better products that can positively impact consumers' lives, demands solutions that effectively deliver care and wellness to consumers, demands products and services that are world-class and a byword for excellence. It is here that the Centre will step in - endeavouring to develop path-breaking solutions that blend science, research and technology to enhance not just product experience but overall quality of life. The challenging task of driving science-led product innovation has been carefully addressed by appropriately identifying the required set of core competency areas of science such as Plant Breeding and Genetics, Agronomy, Microbiology, Cell Biology, Genomics, Proteomics and several disciplines of Chemistry. Presently, the ITC Life Sciences and Technology team has evolved with over 250 world-class scientists and is creating Centres of Excellence in these areas. The Centre is carrying out research and securing proprietary technologies for the Company's businesses.
pg. 41
ITC LIMITED
CHANNEL DESIGN – TRANSPORTATION OF ITC.
Manufacturing Unit Company Sourced Third Party trucks
WSP WareHouse Service Provider Company Sourced Third Party trucks Distributor Sourced Third Party Trucks
Distributors
Wholesalers Distributors
Retailers
Consumers
Consumers
pg. 42
ITC LIMITED
MANUFACTURING FIRMS The module in the distribution network of ITC cigarettes are the manufacturing units located at Bengaluru, Muner, Kolkata, and Saharanpur. These manufacturing units use the raw materials and other available resources to manufacture the various brands of cigarettes.
ZONAL OFFICES AND WAREHOUSES The second level of distribution channel are the zonal offices. Each of the zonal office is situated in different regions like North, South, West, East, North-west region etc. that are like the branch of organization opened for the smooth functioning of the supply chain management of the product in the market. Main task performed by these offices are acting as an intermediate between the manufacturing firm and local distributors who are involved in actual distribution of products to the different selling points in the market. They invigilate the storage point for the company, i.e. warehouse where large amount of stock is stored depending upon the sales in that particular region.
WHOLESALE DISTRIBUTORS The next level of the channel constitutes of distributors. It mainly refers to the agency holders of the company who act as the company representative in the market and supplies the product to the different selling points in the market. They are the most important module in the distribution channel of Cigarettes as on the one hand they are representing company in the market and on the other hand they are involved in promotional activities of the product (due to restriction on advertising and promotion of the Cigarettes using media types). The distributors are available in almost each city and other important areas of the market to increase the availability of the brand in the market and compete against the competitors.
WHOLESALERS The next level of the channel in the distribution is the wholesalers. They help in “bulk breaking” from the local
distributors and also supplies to the retailers in the in and around its periphery. They also help in promoting the company and other promotional activities through various visual merchandising.
pg. 43
ITC LIMITED
RETAILERS The last intermediate that is available before the Cigarette reaches to the customer are the retail outlets. With reference to the Indian perspective, different retail outlets are present in d ifferent forms in the market like:
a) Pubs/ Bars:
These are not basically the retail outlets of Cigarette but are included under this category because few of the super-premium brands are available in each Pub for the facility of the customers coming to that particular place. Also, these places act as point of promotion and launch of new brands. b) Convenience stores (Kirana shops):
Small and big shops present in every locality providing the basic & necessary products to the nearby people or the locality in which it is located. loc ated. c) Pan shops:
Small corner shops that are known with the name of Pan Shops but contributes large share in total sales of Cigarettes in the market. d) Kiosks:
Small outlets in big Malls like Forum, which only sells Cigarettes of different brands of the same company like ITC. Kiosks are being used by the companies to increase the visibility of the brands. e) Large format stores (LFS):
It refers to the big retail outlets that are available in the local markets selling the daily need goods and other middle range of products that are required by the customers for the fulfilment of basic needs like vegetables, grocery, kitchen appliances etc. Ex. Spencer’s, C3 etc.
f) Multi Branding Outlets (MBO’s):
The outlets opened in the Malls and other shopping areas, which are similar to the “Kiosks” but the only with a difference that products from different companies are also available at one place with addition to different brands.
pg. 44
ITC LIMITED
SWOT ANAYLYSIS OF ITC
SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities and threats.
SWOT is a basic, analytical framework that assesses what an entity can and cannot do, for factors both internal as well as external. Using environmental data to evaluate the position of a company, a SWOT analysis determines what assists the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results: where the organization is today, and w here it may be positioned in the future
WEAKNESS
STRENGTH • ITC has a strong and Experienced Management • Strong Brand Presence • Excellent Research & Development Facilities • Portfolio of Business • Sustainability & CSR Programmes • Deep Reach of it's Distribution Channel
• Unrelated Diversification • Heavily Dependent on Tobacco Revenue • Hotel Industry has not able to create a Huge Market Share • Heavy Taxation Policy
SWOT
OPPORTUNITIES • More publicity of Hotel chains to increase Market Share • Social Media Marketing as a replacement for Advertisement Consumer Base due to • Ever- Growing Consumer Addiction Purchasing Power Power of people there • Increasing Purchasing by increasing Demand
THREATS • Strict Government Regulations and Policies Regarding Cigarettes • Intensifing Competition in FMCG Business • FDI in retail, which allows Internationals Brands • Stiff Competition from Both Domestic & International players
pg. 45
3. PROJECT PROFILE
3.1 OBJECTIVES OF THE STUDY Main objective of the internship project is to Study the Infrastructure of WD- Wholesale Dealer’s Point and Study on reduction of turnaround time of the ITC-WSP vehicle, which visits the certain WD Points in the city from where the material drops down to retail Markets in the city. city . Here, Study of WD infrastructure includes, i.
Details of WD manpower and also about on Role Employees of WD
ii.
Space allocated to the Stocks and Storage Logics followed by WD executives in storing the good
iii.
Checking the availability of Vehicles and Freights
iv.
How Sales force are Distributed to the market?
v.
How does vehicle planning happen currently?
vi.
Physical Infrastructure of WD and availability of equipment used in storing and carrying of stock
vii.
Calculating and Illustrating the Operating time of Loading and Unloading of WD and WSP vehicles Respectively.
viii.
Followed by questioners about the operations of WD and Work Timings.
ix.
Efficiently knowing all the operations conducted in the warehouse in both K3 and K4 shipments.
x.
Loading of goods to the retail vehicles, Unloading of Goods from the WSP Vehicle
xi.
Improving productivity & efficiency of workforce in the WD points
xii.
Increasing storage space by modification of current infrastructure.
xiii.
Conversion of current practices followed by work units at WD.
I am expected to study the infrastructure of various WD centres across the city and suggestions on how to reduce turnaround time (TAT) of ITC vehicle from warehouse to WD centres. There is no specific time limit given by the industry. For this I need to collect the data from some WD points across the Hyderabad and Secunderabad City. By knowing the objectives of the project, working model of WD and by helping in overcoming the challenges facing by WD Executives on round which helps WSP for more better Operations and also can overcome the delay of WSP vehicle while returning from WD Point pg. 46
3.2 METHODOLOGY One of the goals of science is description Descriptive research methods are pretty much as they sound they describe situations. They do not make accurate predictions, and they do not determine cause and effect. There are three main types of descriptive methods: observational methods, case-study methods and survey methods.
FOR THIS PROJECT, OBSERVATIONAL METHOD AND DIRECT INTERVIEW IS USED AS ONE OF THE DESCRIPTIVE METHODS IN COLLECTING THE DATA.
OBSERVATIONAL METHOD With the observational method (sometimes referred to as field observation) animal and human behaviour is closely observed. There are two main categories categories of the observational method method — naturalistic observation and laboratory observation. observation. The biggest advantage of the naturalistic naturalistic method of research research is that researchers view participants in their natural environments. environments. This leads to greater ecological validity than laboratory observation, proponents say. Ecological validity refers to the extent to which research can be used in real-life situations. Proponents of laboratory observation often suggest that due to more control in the laboratory, the results found when using
laboratory
observation
are
more
meaningful
than
those
obtained
with
naturalistic
observation. Laboratory observations observations are usually less time-consuming and cheaper than than naturalistic observations. Of course, both naturalistic and laboratory observation observation are important in regard to the the advancement of scientific knowledge.
DATA COLLECTION It refers to the collection of natural phenomena, descriptors, including the result of past experience, observation and experiment. The project consists of numbers, numbers, words, images which have been employed to come to certain inferences. pg. 47
ITC LIMITED
SOURCES OF INFORMATION: -
directly from the respondents. respondents. Data is drawn directly by observing observing Primary Data: Data has been collected directly the working conditions at WD points and taking down the original time for calculating Turnaround Time. For this, I have collected the sample of 10 WD points and their respective 10 WSP vehicles and noted the observations and calculated for assumptions and drawn the specific suggestion.
Secondary Data: Data collected for some other investigation not for the current project was also employed
to conduct research. Books, websites websites were used to take information. information. The authenticity of the source source was verified before employing secondary data.
FOR THIS PROJECT, I NEED TO ANALYSE THE DATA WHICH IS PRIMARY I.E. WHICH IS COLLECTED FROM THE WD POINTS
Data is analysed by calculating c alculating some illustrations with the help of data collected which conspires of number if work units involved, time at which the WSP vehicle entered into WD point time taken to unload the vehicle, time takes for the clearance from, time taken to check the direct order, and finally noting down the time by which the vehicle is going out. By calculating and analysing the data, turnaround time Is calculated and suggestions can be made. Whereas in the study of WD infrastructure there are no illustrations just on the format of observational method, suggesting the best stock keeping place to WD points, which in return also helps in reducing the Turnaround time of WSP vehicle as unloading time can be reduced.
INTERPRETATION INTERPRETATION OF DATA: Statistical and Mathematical tools have been used to analyse and interpret data. Pie charts and bar diagrams have been used to simplify, tabulate and display primary data.
CONCLUSIONS: Inferences have been drawn from both primary and secondary data. Intensive study and research have revealed and uncovered many truths as well as myths of marketing water. There is no particular time frame as such, for me only dead line is which the university u niversity is has given i.e. last date of internship project i.e. 13 th Aug, 2017 as I have received 10 samples from the organization I need to work on them and analyse and submit the report on before the dead line of internship pr ogram, there’s no such dead line’s or time frames given by organization.
pg. 48
4. OBSERVATION AND ANALYSIS 1. WD -1 = SHANMUGANAND & SON’S DATE: 14th June, 2017
VEHICLE NUMBER: AP29T1614
LOCATION: SanathNagar
START TIME: 11:38AM
ORDER TYPE: MIXED ORDER
OPERATION: Out bounding
END TIME: 12:30pm
QUANTITY: 274 CFC’S
ELAPSED TIME: 52mins
WORK UNITS: 3
OBSERVATIONS
ITC vehicle arrived at WD- HY3883 by 6:00am
As WD opens at 9:00 am – ITC vehicle has to stop by (Delay time 3 hrs.)
As vehicle from WD are should be get loaded to reach the Retailers
Actually, it has to be started by 9:00 am. But, due to the late arrival of the executive of respective department of Logistics, it started around 9:36am and continued till 11:35am- (Elapsed time for Retail vehicles – approx. 2hrs.)
Unloading of ITC vehicle started at 11:38am Ended by 12:30pm (Elapsed time for ITC Vehicle to complete its whole operation – 52mins)
Work Units Involved – 3 (According to the explanation of WD EXE. Due to absence of workers they are running in short (3), else they will be having 12 -13 Work units on an Average)
Operating Time (Complete Unloading of Vehicle – 11:40am to 12:25pm) – 45mins
Inspection Time (Pre-Inspection – 2mins, Post-Inspection – 5mins (delay during post inspection is due to there is problem with issuing the LR as on good is not according to LR))
ITC Vehicle started from WD at 12:25pm
It will Reach the ITC Warehouse by 1:30pm APPRX.
Lack of proper knowledge where to place the goods for new work units
For some vehicles loading and unloading taking on parallel
So, at that situations work units are getting divided. pg. 49
Gradually From 6 Work units are reduced to 3 which leads to increase in operating time of unloading the vehicles.
WORKING
On whole 274 CFC’s arrived for today – 3 Work Units – Work Technique used is Assembly Line – On an average one worker carrying 2 CFC’s (274/2 = 137)
Time taken is one minute to lift the load and to place
When there are 3 workers are involved (137 / 3 = 45.6 45 .6 mins) – Assemble Line Process
So, on mathematical operation – whole unloading time is 45mins
SUGGESTIONS
As ITC vehicle is arriving by 6:00am, if the unloading starts by 9:00am immediately then the time by which ITC vehicle reaches to warehouse will be maximum to around -11:30am, by considering the Objective Constraints like number of workers and number of CFC’s received as variables.
So, preferable option would be vehicle reaching retailers should be loaded at night
By involving more number of working units- either in assemble line working technique or by Mass Working Technique
IIUSTRATION (As per the data of WD EXE.) Avg. CFC- 600, Working Units Involvement – 12 One 1 Working Unit – 2 CFC’s – 1min to complete the operation 600 / 2 = 300 CFC turns 300 / 12 = 25mins to whole unload ing operation of 600 CFC’s
BEFORE SUGGESTIONS: Total TURNAROUND TIME from ITC warehouse to ITC warehouse after unloading (as per today data) – 5:00am started from ITC – 1:30pm APPRX. reached back to ITC warehouse = 8 and half hours
AFTER SUGGESTIONS: Total TURNAROUND TIME from ITC warehouse to ITC warehouse after unloading (as per today data) would be 5:00am started from ITC – 11:30am APPRX. = 6 and half hours.
pg. 50
2. WD -2 = ADVANCED TECHNOLOGY SERVICES
DATE: 24h July, 2017
VEHICLE NUMBER: AP29T1614
LOCATION: Balanagar
START TIME: 9:47AM
ORDER TYPE: MIXED ORDER
OPERATION: Out bounding
END TIME: 11:30AM
QUANTITY: 250 CFC’S
ELAPSED TIME: 107 mins
WORK UNITS: 2
OBSERVATIONS: OBSERVATIONS:
ITC vehicle arrived at WD by 5:30am
As WD opens at 9:00 am – ITC vehicle has to stop by (Delay time 3 and Half hour.)
As vehicles from WD to market are should be get loaded to reach the Retailers
Loading of retail Vehicles started around 9:15AM lasted for 3 Hours APPRX.
Work Units Involved – 2, (HAMALI WORKERS) who has to take-up both the Loading and Unloading Operations.
Inspection Time (Pre-Inspection – 2mins, Post-Inspection – 5mins) – On an Avg.
No railing at the Dock, they have to setup the temporary railing to step from the vehicle
parking allotment is comfortable parallel they can park many vehicles
Traveling route from WSP is bit tough as route is not comfortable for heavy vehicles
At this WD point, on an average unloading starts between 11:30PM to 12:00PM which will take around 2 Hours to unload the Vehicle depending upon the order Quantity, as there are only two work units involved in unloading the vehicle.
Average time taken to travel from WD to WSP vehicle v ehicle is 70mins avg.
ITC Vehicle started from WD at 1:30PM to 2:00PM APPRX.
Daily it will reach to WSP, between 2pm to 3pm after the Unloading.
There won’t any problem with police during the day timings as heavy vehicle is moving if at all there is
any stop by police they will be taking around 20 mins for the paper inspection, though which fall under 2:00PM-3:00PM to reach the WSP.
pg. 51
Extra time is taken in between lifting the stock and placing the stock, because whole operations is taking by only one executive and he got to deal with other order details with the Retail drivers on parallel. So, work units who are unloading has to come to executive while carrying and inform what they are carrying for every trip to check on the Direct order.
There are two docks available on parallel they can carry out loading and unloading but there are only two work units available to take up the complete operations i.e. loading and Unloading. So, parallel operations may not be possible.
WD Executives are expecting some work units from WSP to Unload the Vehicle. Stocks are placing closely. and only one way is available for exit from WD i.e. from office and stock area route is same.
pg. 52
3. WD-3 = TKM AGENCY (HY3882)
ROLE
CATEGORY
NO OF PEOPLE
AVG SALARY
DIRECT/ AGENCY
Depot manager
2
16,000
THROUGH AGENCY
Delivery boys
17
10,000
AGENCY
Salesman
TOTAL
19
ON ROLE
GR1 -
5
ON ROLE
GR1B
5
ON ROLE
GR1C
4
ON ROLE
GR2
5
ON ROLE
TOTAL
5
DIRECT
CG
1 (SAME -
(INCLUDING SNACKS)
Go down keeper/ supervisor
16,000
DIRECT
MANAGER)
AT
2
13,000
DIRECT
SX+BI
3
13,000
DIRECT
pg. 53
OTHERS
Supply
DIRECT
manager -1
Computer operator-
4
15,000
DIRECT
Includes in
15,000
DIRECT
billing
MIS staff
Computer OperatorBilling
Pickers/ / packers for K4
Own Vehicle
Own Vehicle
Delivery
Delivery boys
Delivery boys
DIRECT
Office staff
11
15,000
DIRECT
Labor for loading
8
TRUCK BASIS
OFF ROLE
Labor for unloading
3
6,000
N/A
WD- MANPOWER DETAILS: - OBSERVATIONS
-
WORK UNITS AVAILABLE FOR LOADING UNLOADING AT WD – 3
-
MOST OF THE TIMES FOR LOADING INTO RETAIL VEHICLES -OWN VEHICLE DRIVERS AND DELIVERY BOYS ARE TAKING UP THE OPERATION OF LOADING
Sales man are distinguished distinguished as: GRA1 – Biscuits, noodles GR1B – ATTA, Spices GR1C - BINGO, Juices GR2 - PEROSNAL CARE PRODUCTS AND AGARBATTI
pg. 54
In the ITC terminology Logistics Logistics Shipment is carried out by four types K1 – Shipment from Manufacturing Unit to WD (Wholesale Dealers) – Generally, Only Atta is shipped in K1 K2 – Shipment from Manufacturing Unit to WSP (Warehouse Service Provider) K3 – Shipment from WSP to WD K4 – Shipment from WD to Outlets (Retailers, Wholesalers)
VEHICLE PLANNING Vehicle planning is taking out by supply chain manager (Depends on the situation)
Beat wise
Route wise
Channel and beat combination
REMARKS: -
Operators and Supply manager will be supervising the Vehicle Planning Generally, Planning is made through weightage and outlets
one retail vehicle will be delivering to 30 outlets in a day.
Weightages followed are
biscuit 400kgs
bingo 200 kg
GR2 – 250 -300 Kg (Personal Care Products and Agarbattis) Agarbattis)
ATTA – 2 ton, 3 Ton
vehicle s of WD owner. Total outlets managed by WD - 1200 TOTAL RETAIL VEHICLES – 11, all are own vehicles Outlets There are 3 WD Go-downs G o-downs under this Agency
OSMANGUNJ -
-
First floor Chili.
-
ATTA ground floor
ABIDS -
-
Ground floor complete cigarette
-
First floor office
pg. 55
GOLNAKA
-
-
Categories kept in block -1 - Ground Floor-Noodle, Biscuits
-
Categories kept in block -2 – First floor –personal care products, Agarbattis
-
Second floor Bingo and Office
HOPT - Hand operated pallet truck- NILL PALLLETS - Over all -100(including all the three Go-downs) Go -downs) RACKS- NILL CRATES – NILL
NUMBER OF RESOURCES INVOLVED/ AVAILABLE AVAILABLE AT WD TO LOADING AND UNLOADING THE TRCUK- 3 WD REQUIREMENTS – They are Expecting some work units from WSP for Unloading the ITC vehicle.
pg. 56
CHANNEL WISE VEHICLE REQUIREMENT
TRUCK TYPE
GR1A
GR1B
4V
4V
GR1C 2V
PERFORMANCE
GR2 Outlets 1V
COST
Delivery
Avg.
Fixed
Varia
covered
boys per
distance
cost per
ble
per trip
vehicle
per trip
month
cost /km
APPRX.
1 –Ashok-
*
30
2
407
2- Ashok-407
*
30
2
20-
NA with
30KMS
the EXE.
NA
2030KMS
3-Ashok-207
*
30
2
2030KMS
4-Ashok-dost
*
30
2
2030KMS
5-Ashok-dost
*
30
2
2030KMS
6-Tata ace
*
30
2
2030KMS
7-Tata Ace
*
30
2
2030KMS
8-Tata Ace
*
30
2
2030KMS
pg. 57
9-Tata Ace
*
30
2
2030KMS
10-Auto
*
30
2
2030KMS
11-Auto
*
30
2
2030KMS
QUESTIONNAIREQUESTIONNAI RE- TKM AGENCY 1. Is the night Operations Possible at WD Go down? - NO NIGHT operations. 2. How Loose Stock picking is currently getting managed?
Loose stock in empty cfc at separate area – DND stored at top floor – DND also separated by Blocks. 3. Who Picks Stock at WD Go-down for K4?
Delivery Boys and Drivers picks for their respective vehicle 4. Presently how vehicle planning happens? Who does that?
Operators and Supply manager will be supervising the Vehicle Planning Generally, Planning is made through weightage and outlets
one retail vehicle will be delivering to 30 outlets in a day.
Weightages followed are
biscuit 400kgs
bingo 200 kg
GR2 – 250 -300 Kg (Personal Care Products and Agarbattis) Agarbattis)
ATTA – 2 ton, 3 Ton
pg. 58
5. What are the present challenges according to WD’s, w.r.t. WH Management , Delivery Management?
Main Challenge is they are Expecting the workers from WSP for unloading WSP vehicle 6. What is the Avg. Delivery time Per Outlet?
Average time for delivery per outlet – 30mins to 45 mins 7. How many OL’s bill are getting loaded in a Truck?
On an Avg. – On each GRA vehicle APPRX. 30-40 OL Per Truck Truck 8. What time WD’s go-down opens in the morning and what is the working shift Time?
Opens at - 9:30AM working shift timings - 9:30 to 9pm 9. What time K4 vehicle leaves from WD Go-down Go- down and What is the Avg. allowed time for Delivery
k4 trucks generally leaves the WD go down by – 10:30 to 11:0 10. What is the daily avg. Delivery time per?
Average delivery time window from 11 am to 7 or 8 pm-
break time – 1hour
11. What is the KM Run for average K4 Vehicle?
On an Avg. a K4 vehicle travels travels at a radius of
20- 30km
pg. 59
OBSERVATIONS – TKM AGENCY -
On an average WSP vehicle comes to WD point around 6:00am everyday
-
WD point opens at 9:30am – so, WSP vehicle has to stop by till it WD opens (Delay time 3 hrs. Approx.)
-
As Retail market vehicles are to be get loaded and reach the market. They are giving the priority to the Retail vehicles for the operation
-
Unloading of WSP vehicle will be started around 12:00 pm. AS loading of WD vehicles continues till 12:00pm.
-
Generally Unloading of WSP vehicle starts at 12:00pm, which generally lasts till 2:00pm
-
Work Units Involved in unloading the vehicle – 3
-
Technically Operating time lasts for 2 Hours
-
Inspection Time (Pre-Inspection – 2mins, Post-Inspection – 5mins
-
WSP Vehicle falls back to Warehouse from WD around 1:30pm to 2:00pm Approx. (Which is daily routine)
-
So, WSP vehicle will Reach the ITC Warehouse by around 3:00pm to 3:30pmAPPRX.
-
Here, there ’s a clause WSP vehicle should cross the city limits before 4:00pm to avoid the traffic allegations
-
At ITC WSP, there are some Shipment timings to be followed i.e.
Because the vehicle which is sent to any WD in the morning shift, it has to be returned to the WSP point by 1:30pm to 2:00pm because another shift of loading operation starts by 2:00pm. But, in here WSP vehicle is reaching to WSP point by 3:00pm to 3:30pm 3: 30pm which resulting in the late of shipment timings at WSP.
pg. 60
4. WD-4 = SHREE KHIWAJ TRADERS (HY4332)
ROLE
CATEGORY
NO OF PEOPLE
AVG SALARY
DIRECT/ AGENCY
Depot manager
NO
-
-
Delivery boys
14(Vehicle’s
8,000
AGENCY
15,000
ON ROLE
driver and delivery boys)
Salesman
TOTAL- 8
GR1 -& 3
6
(INCLUDING SNACKS)
Go down keeper/
GR1B
2
Tobacco
11
TOTAL
1-Go-Down
Supervisor – 12,000
In-charge, 2supervisors
In-charge - 15,000
supervisor
CG
1-separate
AT
SX+BI
pg. 61
OTHERS
Computer operator-
2
Each 15,000
2
Each 15,000
billing
MIS staff
Cashier & Accountant
Pickers / packers for
6 Vehicles
14
K4 Delivery
Office staff
Labor for loading
Labor for unloading
3
9,000
Allotted by WSP
OBSERVATIONS
-
WORK UNITS AVAILABLE FOR LOADING -2
-
FOR UNLOADING of ITC- WSP vehicle - VEHICLE DRIVER AND helpers provided by WSP ARE TAKING UP THE OPERATION OF UNLOADING
Sales man are distinguished as: GRA1 & GRA3 - foods, Confectionery – Salesman’s - 6 GR1C- personal care Products- 2 GR2 – cigarette -11 Salesmen Salesmen
Number of outlets covered under WD – 500, Salesman – 8
pg. 62
Complete Routes Covered under this WD 6 routes. -
2 docks available
-
proper parking place
-
railings comfortable for work units to pick and step
Complete Go-down – 6000sqft First Floor – 3000SQFT Ground Floor – 3000SQFT
There are two floors -
Ground floor – Bingo, Cigarette, chocolate
-
First Floor – remaining and DND
For loading into WD- outlet vehicles Night they will segregate the stock according to the route and vehicle So, morning they can directly load into the vehicle Maximum for one work unit taking in between picking up the stock and placing in the vehicle and coming back to pick up the stock is approx. 37secs Maximum by 12 ITC vehicle will start back to warehouse Maximum they will take 1 hour to unload the complete DO. Maximum stock/ order they received is around 360 Quantity.
-
HOPT - Hand operated pallet truck- NILL
-
PALLLETS - NILL
-
RACKS - NILL
-
CRATES – NILL
pg. 63
CHANNEL WISE VEHICLE REQUIREMENT
TRUCK
GR1A
GRA3
TYPE
PERFORMANCE
GR1C
GR2
2
COST
Outlets
Delivery
Avg.
F.C per
V.C Per
covered
boys per
distance
month
month
per trip
vehicle
per trip
(Diesel)
APPRX.
1- Super
*
*
30-35
2
ace
2-super
4,000
6,500
(M.C)
*
*
30-35
2
ace
4,000
6,500
(M.C)
3-Tata ace
*
30-35
2
4,000
6,500
(M.C)
4-Tate ace
*
30-35
2
22,000
6,500
(M.C is
RENT
by owner)
5-Tata ace
30-35
2
22,000
6,500
(M.C is RENT
by owner)
6-
Biscuit’s,
Biscuit’s,
Mahindra
confectionery-
confectionery-
Pago
wholesale
wholesale order
order of
of cigarette
*
30-35
2
4,000
6,500
(M.C)
cigarette
M.C – Maintenance Maintenance Cost, F.C – Fixed Fixed Cost, V.C - Variable Cost. pg. 64
QUESTIONNAIREQUESTIONNAI RE- SHREE KHIWAJ TRADERS (HY4332) 1. Is the night Operations Possible at WD Go down? NO Night Operations (except before closing time, Retail vehicle orders are segregated Accordingly which in morning can directly load in to the vehicles.) 2. How Loose Stock picking is currently getting managed? Loose stock in empty cfc at separate area – DND stored at ground floor in a separated room – DND also separated by Blocks. 3. Who Picks Stock at WD Go-down for K4? 2 WD Workers, only for loading into K4 Vehicles 4. Presently how vehicle planning happens? Who does that? Generally, Route Wise. In any mixed order with less amount of order then they will go with channel wise. logistics manager does vehicle planning 5. What are the present challenges according to WD’s, w.r.t. WH Management, Delivery Management?
There are no challenges facing for WD 6. What is the Avg. Delivery time Per Outlet? If they are into channel Wise Planning
-
Biscuit, Mangaldeep, Personal care Products – half an hour 30-40mins
-
Atta 25 to 30
-
Bingo – chocolate 30 – 40 Mins Delivery window
-
Most of the routes are nearby, like 4 out of 6 routes are near to the WD Point. Which hardly take 45 minutes to one hour for a round trip.
-
Whereas remaining two sumps to 2 hours for one round trip.
pg. 65
7. How many OL’s bill are getting loaded in a Truck? On an average 20 -25 OL’s bill are loaded in a truck . But, minimum 15 will be maintained 8. What time WD’s go-down opens in the morning and what is the working shift Time? 9:00AM to 9:30PM, there are no other shifts 9. What is the KM Run for average K4 Vehicle? There are 6 Routes under WD -
HMT HILLS Bollaram 5th Phase Miyapur Pragathi Nagar Nizampet
For General routes 50KMS, Long Routes 60 KMS, Double trip for long routes – 120 KMS 10. What is the daily avg. Delivery time? 9:00AM to 5:30PM delivery window time, it may exceed depending upon the order quantity and if any extra trips needed. 11. What time K4 vehicle leaves from WD Go-down Go -down and What is the Avg. allowed time for Delivery 9:00am leave to market - Night operations to load into WD vehicles.
pg. 66
OBSERVATIONS- SHREE KHIWAJ TRADERS (HY4332)
-
On an average WSP vehicle comes to WD point around 6:00am everyday
-
WD point opens at 9:30am – so, WSP vehicle has to stop by till it WD opens (Delay time 3 hrs. Approx.)
-
As Retail market vehicles are to be get loaded and reach the market. They are giving the priority to the Retail vehicles for the operation
-
Unloading of WSP vehicle will be started around 10:30am. As loading of WD vehicles continues till APPRX. 10:30M.
-
Generally Unloading of WSP vehicle starts at 10:30Am, which generally lasts till 11:30Am TO 12:00PM
-
Work Units Involved in unloading the vehicle – 2 to 3, depending on the order quantity, quantity, those work units are allotted by the WSP
-
Technically Operating time lasts for 1 Hour
-
Inspection Time (Pre-Inspection – 2mins, Post-Inspection – 5mins)
-
WSP Vehicle falls back to Warehouse from WD around 12:00 Approx. (Which is daily routine)
-
So, WSP vehicle will Reach the ITC Warehouse by around 1:30PM
pg. 67
5. FINDINGS
To every WD, ITC vehicle will be reaching there by 6:00AM from WSP. WD opens at 9:00AM
Immediate operation taken place at WD is Loading the Retail Vehicles which almost takes around 2 to 3 Hours to take the complete operation, by then it would be around 11:30AM to 12:00PM
Now, Unloading of ITC vehicle takes place which almost takes around 1 to 2 Hours depending upon the order they received, by then it would be around 1:30PM to 2:00PM. Here, the real problem is at WSP by 2:00PM New shift of operations will be started i.e. Loading will be started, due to the delay at WD, Vehicle is coming to WSP at around 2:30PM 2: 30PM to 3:30Pm depending on the distance from the WSP
Here, there’s one more clause is there, WSP Vehicle being it a heavy sectored vehicle it has to cut -off
from the city limits before 4:00Pm else it will be registered under traffic violations.
So, here gradually Starting time of Operations at WSP is getting late.
Location Problem is major criteria for WD Points
Lack of proper parking facilities for the WSP vehicles
Minimum number of work Units are available for Loading and Unloading U nloading operations.
At some WD Points, only one Operations Executive is there to take care of both Loading and Unloading operations and even for the paper check i.e. DO – Direct order
pg. 68
6. SUGGESTIONS 1. To every WD point, WSP vehicle is reaching there on or before by 6:00AM, A lmost all WD Point’s Opens
at 9:00AM. But unloading starts at around 11:30AM due to the loading process of retail vehicles will be taking care of in the morning, On an Average Unloading Operation time will be maximum to 2 to 3Hours. Due to this ITC vehicle is returning back to WSP by around 3:00PM, to overcome this , Retail vehicles should be managed to load at the night of before day and soon after the WD opens, they can
start to the Market. With this process, they can save around 2 Hours, WSP vehicle can be managed to return to WSP by 1:00PM Maximum.
2. Increase in the Work units at the WD points . On an average Maximum number of Work u nits available
at each WD points are 3,4 which even include for both loading of retail vehicles and Unloading of retail vehicles.
3. Some WD Executives are expecting some workers from WSP for unloading operations, as there are only limited number of work units for both loading and unloading of operations. So, some workers should be allotted by the WSP with the vehicle for the unloading purpose
4.
WD should make sure that all work Units were trained to to complete the job in time without and delay.
5. Major Problem would be Parking area, Stockings, because at some the WD points some stocks are
stored at one go-down and some stocks at placed at other go-down. Like, ATTA and Chili at one godown, cigarette at separate go-down. When there is a Mixed Order then it will a complete problem for Location Planning of of WD should be be taken Care of. of. the Vehicle and for the parking as well. So , Precisely Location
6. WD – Physical Infrastructure should be taken care of with minimum requirements i.e . for each WD with At least two dock areas areas would be helpful for the both loading and unloading operations. So, that they
can be carried out on parallel. pg. 69
7. Additionally, two operation executives taking care of, one for loading of retail vehicles and one for
unloading of WSP vehicle at two separate docks. In case there are two or more WSP vehicles to be visited to WD on a day, then the WD operations won’t be disturbed and equally Turnaround time for
WSP vehicle will also be controlled and reduced.
8. To eradicate all these findings on single sh ot suggestion would be, till now WD’s are maintained by
third parties. If ITC take up the WD on their own distribution channel , then they can overcome the challenges and make it more flexible accordingly.
9. It’s better to install GPS devices to WSP vehicles and GPS location identity for the WD point, which helps
in getting the fastest and alternative routes to the destination during traffic jams, road constructions E.T.C.
pg. 70
7. CONCLUSIONS In a nutshell, this internship has been an excellent and rewarding experience. Working with various warehouse and logistics executives and WD Executives of ITC and in fact, helped in knowing how the Channel design of such big FMCG company works. The program went well, there are only few challenges encountered from the start of the program to its end. The quality of information and reliability can be high because being it a primary data collected by observational method and face to face interview with some WD executives. While proper definition of problem tells the survey to whom to contact, proper design tells him how to collect required information. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantage and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. The Modern warehouse, productivity index is defined as the number of pallets and cases picked per hour. The cycle time of the operation also contribute to the productivity of the warehouse. Through this scientific approach, the deliverables would be to eliminate waiting time, wastages and convert them into productive hours so to create additional capacity within the same set of resources. But, here at most of the WD points there are no pallets and cases picked is followed so which resulted in lack of productivity in picking and storing the stocks. WD manpower is sufficient with the capacity of WD. But there’s a room for improvement at the increase of
manpower under loading and unloading operations. Parking facility at some WD point’s yet to be improved and for some WD point’s there is proper route for entering for the heavy vehicles. As the productivity will
increase more by increase in involvement of more number of work units in loading and unloading operations. The productivity of the WD can be increased if the loading operation for WD vehicles are taken care at the night, which results in reduction of process time for the next morning. As per the suggestions mentioned above the small fraction of time also impact lot of difference in the productivity of the warehouse. I came up with various proposals and ideas that the company is still looking into using, and I would like to recommend that the company continues to give same support and the experience to other interns to come. All in all, it was great experience working with the company, and it has given me insight on how to shape my career for greater responsibilities in the near future. I can conclude that there ha ve been a lot I’ve learnt from my work at ITC Ltd .
pg. 71
8. KEY LEARNINGS AND CONTRIBUTION TO THE ORGANIZATION: Learning:
How to interact with the respondents.
Practical Industry Knowledge
Not expect the help from the Industry.
Self-Understanding and Self Learning regarding the Project
How to check questionnaire.
Time managing.
I learnt how to do scrutiny and briefing of any questionnaire.
I understood what the project leader wants and act in the direction she/ he wants. Don’t expect more than your capacity.
Contribution:
I got a chance to do back checking and briefing of questionnaire and I did it successfully.
I could take appointments from WD executives and professionals on my own.
Overall Experience:
Working for ITC under this Project, has given me the chance to learn and acquire more experience from most of the activities undertaken during the process, and to meet guides and to share ideas with some of the staff members. Since the programme went well, there are only few challenges encountered from the start of the programme to its end. And I would like to recommend that the company continues to give same support and the experience to other interns to come. All in all, it was great experience working with the company, additionally being it field and real world work it was kind of challenging as I got responsibility to deal with various Area executives and it has given me insight on how to shape my career for greater responsibilities in the near future.
pg. 72
9. ANNEXURE
1. Is the night Operations Possible at WD Go down? 2. How Loose Stock picking is currently getting managed? 3. Who Picks Stock at WD Go-down for K4? 4. Presently how vehicle planning happens? Who does that? 5. What are the present challenges according to WD’s, w.r.t. WH Management, Delivery Management? 6. What is the Avg. Delivery time Per Outlet? 7. How many OL’s bill are getting loaded in a Truck? 8. What time WD’s go-down opens in the morning and what is the working shift Time? 9. What is the KM Run for average K4 Vehicle? 10. What is the daily avg. Delivery time? 11. What time K4 vehicle leaves from WD Go-down Go -down and What is the Avg. allowed time for Delivery?
10. REFERENCES
1. https://www.scribd.com/ 2. http://itcportal.mobi/itc-overview.pdf 3. http://itcportal.mobi/itc-brands-brochure.pdf 4. https://www.slideshare.net/ 5. https://www.ibef.org/download/FMCG-May-2017.pdf
pg. 73
pg. 74
pg. 75
