A Project on Supply Chain Management

2010 LEAD TIME ANALYSIS OF IMPORTED RAWMETERIALS FOR BERGER PAINTS

NAME: AVISHEK KABIRAJ INTERNATIONAL BUSINESS SCHOOL, KOLKATA

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Page |2

Acknowledgment My summ ummer trai traini ning ng with with BERGER PAINTS INDIA LTD. is a lifetim time exp experien rienc ce tha that I will cher cheris ish h thro throug ugh hout out my caree areer. r. This This proj projec ectt has prov provid ided ed me a gre great opp opportu ortuni nity ty to expe experi rien ence ce the the work ork cul culture ture and and work ork proc proces esss of Berger Paints Material Division. This project can ne ver be prepared by the singular efforts but I also demand the help an gua guardi rdians anship hip of some ome conv conver erssant ant pers person onss who who unde underr pin pin activ actively ely or pas passive sively ly in the the com complet pletiion of a succ succes essf sful ul proj projec ect. t. I wish to express my sincere gratitude to Mr. D.K.Virmani (Head-Materials Dept Berger Paints) and Mr. Pradip Bandyopadhyay (Manager H.R. Dept Berger Paints) for giv giving me

the the opp opportu ortuni nity ty to do my summ ummer trai traini ning ng at his his high highly ly este esteem emed ed Organ rganiz izati ation on.. I am als also grateful to Mr. Arindam Mukhopadhyay (Assistant Manager, Materials) for his valu aluabl able guid uidanc ance, advi dvice, suggestion tion and and cons onstan tant encour ouragement ent rendered to me at ever stage. I am also t hankful to respected Prof. Soumendu Ganguly(internal guide), for giving me inf informati ormation on and and guidan guidance ce durin during g my train trainin ing g peri period. od. I would like to t hank to Prof. Sudipto Mitra (campus head) and and faculty ulty memb embers, Dr. Lopamudra Bhatacharya and Prof. Mahua Banerjee who were alwa ys there for my he lp

whenever whenever needed. needed. I am als also tha thankful kful to all all oth others who help elped me dir directly tly or indir directly tly tow towards the the compl omple etion tion o my proj projec ectt work work..

AVISHEK KABIRAJ MBA (LOGISTICS) INTERNATIONAL BUSINESS SCHOOL,



























Page |3

TABLE OF CONTENTS Component

Page No

y

Executive Summary

y

Objectives Objectives

4-5

6 7-12

y

Paint

y

Indian

y

Company

y

Brand details

y

Ma jor

y

Time

y

Research

Methodology.

y

Findings

and Analysis :-

Paint Industry

13-18

Pr of of ileile- Berger Paints

19-21

of Berger Paints

22-25

Raw Materials Imported

26-35

Scheduling



Inbound

36-37 38-47

logistics Lead time analysis- P ort to Port. (Sea

48-67

transport).

68-74



Custom

75-79



Warehousing



Inbound logistics

clearance and its lead time analysis. Details and

Total

80-85

Lead time analysis- P ort to Plant.

(Road transport). 

Charges.

86-88

time analysis.

y

Recommendations.

y

Conclusion.

89-92 93





















































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FI ND NDI N NG A ND RECOMMEND ENDA ATIO N:

In

this project this project the total importation of raw of raw materials for B for Berger P erger Paints has een depicted into four different sub structures: structures: Inbound

logistics Lead time analysis- Port to Port. (Sea (Sea transport).

Custom clearance and its lead time analysis.

Warehousing Details and Charges.

Inbound

logistics Lead time analysis- Port to Plant. (R oad oad Transport).

And the lead time has has been been projected projected along with the various delays which increases it. Then

a total Time Analysis is done considering all the above four processes processes and recommendation is given how the total delay can can be be reduced and the whole whole process process can can be be more smoothly handled and efficiency can can be be increased while having cost effectiveness.



























Page |6

OBJECTIVES ³Knowing is not enough; we must apply. Willing is not enough; we must must do.´- Johann Wolfgang.

PR IM VE:-IMARY OBJECTIVE: Inbound logistics logistics Lead ead time analysis lysis (Port ort to Port) ort)::- Here we try to analyze time

taken for importing for importing raw materials of paints paints for B for Berger P erger Paints from Source Countries to 3 different ports (K olkata olkata Port, Chennai Port, and Mumbai Port) of India. Inbound logistics logistics Lead ead time analysis lysis (Port ort to Plant): t): - Here we try to analyze time

taken for road for road transportation of the of the raw materials from the three different Ports (K olkata olkata Port, Chennai Port, Mumbai Port ) to the seven different Plants of B of Berger Paints.

SECO ND NDA ARY OBJEC TIVE: VE:--

Ide Identif y the f ollowi ollowing:-

Custom clearance analysis and its delays. Warehousing Details and Charges.





























Page |7

PAI N NT DEFI NITIO N:

Paint is any liq liquid, liq liquefiable, or mastic or mastic composition which after application after application to a substrate in a thin layer is layer is converted to an opaq opaque solid film. Paint is a pigmented material which when applied to a surface forms a solid opaq opaque coating under normal under normal conditions of atmospheric of atmospheric temperature or elevated or elevated temperature. It can be can be used as a protective coating or decorative coating.

PURPOSE OF PA PAI NT: Paints are used mainly for four for four reasons reasons:: To protect

the surface. To decorate the surface. To hide the surface. Aesthetics & Identity

COMPOSITIO N OF PA PAI NTS: Paint is composed of pigments, pigments, solvents, resins, and various additives. The pigmen igments give the pain aint color; solve olven nts make it easier easier to apply; bind ndeer hel help it dry and b biind the pain aint; dditives itives ser serve as every everythi thin ng f rom rom fill filleers to ant f ungici ungicid dal agen agents. Proper paint and add paint formulation req requires suitable selection of solvents, of solvents, pigments, pigments, binders binders and some additives.



























Page |8 The imp importa ortan nt featur features es req equ uired f or or each of these compone onents will be be discu iscussed ssed be below.

PIGM IGMENT: By pigments we mean the insoluble solid substances, supplied in fine particles fine particles sizes which give the dried paint dried paint film its desired color and other optical other optical properties properties and also to confer increased hardness, durability and protective and protective properties. properties. Pigments have also been found to affect the consistency and the application properties application properties of the of the paints paints consistency and the application properties application properties of the of the paints paints considerably. Factor actorss inf lue luencin cing the properties of pigmen igments: ts: Color: Clean, Clean, bright bright and intense, reproducible hues are most important for all for all pigments. pigments. he basic hues of the of the pigment pigment have been have been found to be to be determined by determined by its chemical The basic composition, whereas modification of brightness, brightness, cleanliness and intensity are affected by affected by the refractive index differences.

of crystal Crysta Crystall hab habit and crysta rystall modificati odification on : crystal defects and ,modification of crystal lattice patterns lattice patterns influence pigment influence pigment characteristics. Where multiple lattice structure exists for a for a given pigments, given pigments, controls must be exercised during formation to obtain the proper the proper crystal habit and thereby to prevent incorrect hue and other unwanted other unwanted pigment pigment properties. properties.

hiding power of of aa pigment depends primarily depends primarily upon the ability of the of the Par Particl ticles size: size: hiding power dispersed particles dispersed particles to scatter light. scatter light. Tinting strength is also related to the particle the particle size and approaches a maximum at similar values for some for some inorganic pigments inorganic pigments and at low particle low particle



























Page |9 of surface area of pigments particles pigments particles is essential, it varies with Surface area : knowledge of surface Surface the type of the of the pigments pigments and the methods used for their for their preparation. preparation. In order to order to achieve satisfactory performance satisfactory performance properties properties of the of the films surface must be wetted properly wetted properly by by a vehicle to achieve complete dispersion. Oil Abs Absorption tion : it is defined as the amount of oil of oil in gms. req required by uired by 100 in gms. of pigment to form a pasty mass. The rate of oil of oil absorption varies from pigment from pigment to pigment depending on their particle particle size and surface nature. This information is important while formulating paint. formulating paint.

Bulki Bulkin ng Value lue : Bulking value of a pigment is defined as the number of liters occupied by 100 kilogram of pigment. of pigment. This gives idea about the volume occupied by a given weight of pigment. pigment.

Corrosi Corrosion on inhib some pigments are used in corrosion inhibiting hibitin iting properties : some pigments primers because primers because they produce they produce such conditions, which would prevent would prevent or retard or retard corrosion. Some pigments, ome pigments, produce produce an alkaline condition, which retards the conditions for corrosion. They would also neutralize the acids of the of the medium and other acids other acids which cause the corrosion. Sometimes soaps have water repellent water repellent properties properties and therefore would decrease the absorption of water of water by by the coating and thereby retarding the condition for corrosion for corrosion .Certain pigments ertain pigments have a passivating action by action by providing providing ions which react with metal and reduce its tendency to corrode.

. BI NDER OR VEHICLE:



























P a g e | 10

SOLVENT: It

might be assumed that because the solvents paint solvents paint is ultimately lost through evaporation, their importance their importance is small relative to that of the of the other ingredients. other ingredients. In practice, considerable knowledge of the of the properties properties of the of the volatile ingredients of paints paints is essential in order to order to formulate the wide variety of finishes. of finishes.

ADDITIVES: -

Besides the three main categories of ingredients, of ingredients, paint paint can have a wide variety of miscellaneous additives, which are usually added in very small amounts(1 amounts(1 - 4 gm in 100 gm of paint) paint) and yet give a very significant effect on the product. the product. Some examples include additives to modify surface tension, improve flow properties, flow properties, improve the finished appearance, increase wet edge, improve pigment stability, impart antifreeze properties, antifreeze properties, control foaming, control skinning, etc. Other types of additives of additives include catalysts, thickeners, stabilizers, emulsifiers, texturizers, adhesion promoters, UV stabilizers, flatteners (de-glossing agents), biocides agents), biocides to fight bacterial growth, and the like.They are available in all stages of paint paint making Processi rocessin ng

: Wetting, Dispersing agents

Application ication : Storage orage

Thixotropic Additives

: Anti- skinning agents

Per Perf orma orman nce : Biocides

(for making for making thick structure thick structure prevents sagging)



























P a g e | 11

FLOW SHEET SHOWI N NG THE PR I NC NCIPLES OF PA PAI N NT MAK I N NG

PIGMENT

SOLVENT

MEDIUM OR VARNISH

ADDITIVES

NDI N NG GR I ND EQUIPMENT

DRYERS

MIXER

STAI NER NER





























P a g e | 12

Painting Surface Pain Pai nti tin ng sur urface face Masonry

External

Metal

Internal

Factors of good of good Paints

Wood



























P a g e | 13

THE I ND NDIA N

PA PAI NT I NDUS NDUSTRY

The

size of the of the paints paints market in India is estimated at R s 110 bn, 110 bn, with the contribution of the organized and unorganized segments in the ratio of 65:35 of 65:35.. . he paint The paint

market is expected to grow at 8 to 10 % p.a % p.a over the over the next few years. The growth could be could be higher if higher if industrial industrial activity picks activity picks up as the industrial paint industrial paint segment is gaining more importance .

Paints can be can be broadly broadly classified as decorative and industrial on the basis the basis of the of the end use. The Indian

market is dominated by dominated by the decorative segment which comprises almost 70% of consumption of consumption as compared to developed countries where the industrial segment is more dominant. The ratio is India is also likely to shift more towards industrial segment, especially with growth in the auto and white goods industry.

ver the Over the

last five years the excise rates have come down drastically from 40% to 18% resulting in erosion of the of the unorganized sector¶s share.



























P a g e | 14 The

outlook for outlook for the the industry is positive is positive especially given the good prospect good prospect for automotive for automotive and white goods industry. Moreover, housing is expected to grow rapidly on the back the back of of rising rising incomes and government incentives. The supply situation remains a cause for concern for concern and will keep prices keep prices under check. under check. The key to success will be will be innovative marketing.

INDIAN PAINT INDUSTRY

DECOR ATIVE PA PAI NT I NDUSTRY I NDUSTR IAL I NDUSTRY

PAI NT



























P a g e | 15

THE

O N

PA PAI NT MARKET SEGMENTATIO N:

PR ODUCT LI NES: NES:

Decor ecorative ative or architectur chitectura al pain aints Decorative or architectural paints architectural paints cover mainly cover mainly the housing sector.

Decorative or architectural paints architectural paints can be can be differentiated into Premiu emium segmen segments: - (40%) (40%) Premium decorative paints decorative paints are acrylic emulsions used mostly in the metropolitan cities. Medium segmen segments: - (40%) (40%) The medium range consists of enamels, of enamels, popular popular in smaller cities and towns.



























P a g e | 16 16 Indust Industrrial ial pain aints ndustrial paints Industrial paints

cover mainly cover mainly the automotive segment.

ndustrial paints Industrial paints

can be can be differentiated into: into:

Automotive Paints - 50% High Performance

Coating - 30%. 30%.

Powder C owder Coating - 10% Coil Coating - 5%

Marine

Paints - 5%

Indust Industrrial ial pain aint segmen segment: ON PRODUCT LINE

Automotive Paints





























P a g e | 17 17

O N MARKET

SEGMENTATIO N:

Dec ecor orative ative or architectur chitectura al pain aints: ts: Decor can be differentiated into: into : ecorative ative pain aints can be

Decorative Paints Segment Enamel

Market

Size In Rs (Milli on) 8600



























P a g e | 18

Indust Industrrial ial pain aints: ts: Indust Industrrial ial pain aints can be can be differentiated into: into:

Industrial

Paints Segment

Market

Size In Rs(Million)

Auto

4386

CRP

1075



























P a g e | 19

COMPA NY PR OFILE

I NTR ODUCTIO N:

to be be inspired by the creation and innovation of Mr. Le Berge gerr Pai Pain nts continues to Lewis offered people people a chance to transform Berge gerr, who through his marvelous shades, had offered gerr it is their homes their homes through the the power power of of imagination. imagination. At Berge is believed believed in taking taking paints paints to gerr si sin nce 1760. the level of fine art. Enriched nriched by by the imagination of Lewis Berge



























P a g e | 20 req requirements of trade, of trade, commerce and industry. Some of the of the brands brands manufactured are Castle, Parrot, Duroglaze, Luxol, Murisan, Synthetic, Soligum, Apexior, etc.

duty paints 1975 - The Protection Paints division was launched to specialize in heavy duty paints req required to with standex acting conditions of high of high chemical and atmospheric corrosion in chemical process chemical process industries and other allied other allied industires and installations.

1986 - The Company concluded a technology agreement with Vaspa Corporation of

U.S.A. for manufacture for manufacture of highly of highly anti-corrosive coatings.



























P a g e | 21 manufacture and sale of coatings of coatings for plastic substrates used in automobiles and parts and parts thereof in thereof in India.

erger Paints India Ltd has informed that Mr. 2008 - Berger P

Gerald

K enneth enneth Adams has been has been

appointed as a Director of irector of the the Company effective January 30, 30, 2008. 2008.

2009 - Berger P erger Paints India Ltd has informed that Mr. Pulak P ulak Prasad was appointed an

Additional Director ( irector (non-whole time) of the of the Company under S under Section 260 of the of the Companies Act, 1956. 1956.





























P a g e | 22 THE MAJOR

BR A ND DETAIL OF BER GER PA PAI NTS

Berger ger color ba bank offers an excellent range of products products that appeal to the discerning householder as householder as well as the budget the budget conscious individual keen on stretching the rupee. The range



























P a g e | 23

I NTER IO IOR

FI N NISH FOR WOOD SURFA SURFACES



























P a g e | 24

Luxol gold lust lustur uree

Premium quality , semi glossy synthetic enamel for for kitchens kitchens ,hotels ,hotels balcony balcony , staircases ,etc .

12--14 12 14m^ m^2/ 2/ltr ltr /coat



























P a g e | 25 MAJOR

R AW METER IALS IMPOR TED

R AW MATER IAL SCEN SCENA AR IO IO:



























P a g e | 26 26 IMPOR TED

R AW METER IALS A ND COUNTR IES FR OM OM:



































































































































































































































































































































































































































































































































































































































































































































































































P a g e | 62 FIGURE 6: TIME TAKEN FROM USA:

32

35 30

29

28. 28.5

28. 28.7 26. 26.7

24. 24.5

29. 29.8 27. 27.8

26.5 26. 26.5 26.

26

24

25 20 NO. OF DAYS

15

(Y AXIS)

10 5 0 K OL OL

WILMI NGTO N

MUM

SA N FR A NSISCO

CHEN

PITTSBUR GH GH

NUYORK

METERIAL

COUNTRY FROM

KOLKATA

MUMBAI

CHENNAI

RUTILE TI PURE

USA (WILMINGTON)

28DAYS 17HRS (9650NMILES)



TIXOGEL-MP

USA (SAN FRANCISCO)



26DAYS14HRS (8933 NMILES)

USA (PITTSBURGH)

31DAYS 23HRS(10747NMIL ES)

27DAYS 20HRS(9348NMILES)


USA(NEW JERSY) NEAREST PORT NYK

28DAYS 8HRS (9525 NMILES)



CUMARR-29

TROYKYD D-666



























P a g e | 63

FIGURE 17 17: TIME TAKEN FROM VIETNAM

9 10

6.75

6.5

8 6 NO. OF DAYS

4 2

(Y

0 K OL OL

MUM

NG HO CHI MI N

CHEN CITY

RAW METERIAL

COUNTRY FROM

TO KOLKATA

TO MUMBAI

TO CHENNAI

GUM ROSIN "WW" GRADE

VIETNAM (HO CHI MINH CITY)






























P a g e | 64

WOR LD SEA SEA R OUTES



























P a g e | 65

SEA SEA TR ADE R OUTES I N I NDIA N OCEA CEA N



























P a g e | 66

Custom Clearance Findings

Need N eed for for custom custom clearance clearance:: All goods imported in India have to pass through the procedure the procedure of customs of customs clearance after they after they enter Indian Borders. The goods are examined, appraised, assessed, evaluated and allowed to be to be taken out after payment payment of custom of custom duty. Since the entire process entire process is complex the importers usually take the help of clearing of clearing agents.

eneral procedure procedure:: General Custom clearance of sea of sea consignments involves the following major steps major steps:: 1. Preparation ation of of b bill of of eentry :

on receipt of advice of advice of arrival of arrival of the of the vessel, the importer or their or their agents agents are req required to present a bill of entry of entry in the prescribed the prescribed form. Bill of entry of entry is of three of three types: types: y

bill of entry of entry for home for home consumptions( consumptions(white bill)

y

bill of entry of entry for warehousing for warehousing (yellow bill) yellow bill)

y

ex- bond ex- bond bill bill of entry of entry((green bill). green bill).

2. Noti Notin ng of b f bill of of eentry : The

noting of bill bill of entry of entry is filed with the import department of the of the customs house. The

noting clerk examines clerk examines the paper the paper and and if found if found in order signs order signs the bill the bill of entry. of entry.

Note Note:: the date of noting of noting is important because important because the rate of duty of duty applicable to the goods

would be would be the rate as in force on the date of noting of noting except in case of warehouse of warehouse goods





























P a g e | 67 3. Submissi Submission on of of b bill of of eentry f or or appraisin oods: aising of g f goods

After noting After noting the bill the bill of entry of entry is submitted to the receipt counter in counter in the appraising department along with the following necessary documents for Chemical hemical composition sition (i ( in case of im f import ort of chemica f chemicalls and allie llied d products) roducts) products roducts::

1.

I mport

license.

2. Exporters invoice 3.

Original

copy of bill of bill of lading and its non negotiable copy .

4.

Two

5.

Manufactures

copies of packing packing list test certificate.

6. Weight specification. 7. Certificate of origin. of origin. 8. Delivery order issued order issued by shipping company or its agent. 9. Freight certificate (in case of F of F.O.B. consignment) 10. 10. Insurance certificate (in case of F of F.O.B and C&F consignment). 11. 11. Declaration from the importer of importer of having having paid paid no commission to agents of India. 12. 12. Customs declaration. 13. 13. Catalogue /drawing of the of the machinery/ machinery/ equipment/ uipment/ material or etc.

4.

Passin Passing of b f bill of of eentry:

The

information /documents submitted submitted by by the importer importer along along with with bill bill of of entry entry are

verified by the appraiser appraiser concerned concerned who after after necessary necessary verifications and examination decides the product the product classification and and passes passes the assessment. The underlying objectives are to assess the



























P a g e | 68

b)

f there If there

is a doubt relating to classification (this being this being possible possible if the if the

information/ information/documents is adeq adequate to accept declared value and determine classification, the appraiser may appraiser may raise a ³query-memo required to be replied memo´ which is normal course is req within 2 days. The

group appraiser may appraiser may also issue examination order to order to the shed appraiser and appraiser and decide

the product the product classification after receipt after receipt of examination of examination report. This procedure where assessment is completed and duty is recovered after examination s t check pr ocedur e´. e´. rst check pr ocedur of goods is called ³fi r

5.

Lice Licen nsin sing f orma ormallities: ities:

Bill of entry of entry (original and duplicate) is received in the license section for necessary for necessary debit entry and for pre pre audit. Thereafter, duty is computed by computed by computist and then returned to importer for importer for payment payment of duty of duty in the accounts/ accounts/ cash department.

6. Pay Paymen ment of c f custo stom du dutty:

All copies of bill bill of entry of entry along with pay with pay slip are submitted to the accounts section for payment of duty. of duty. The following types of custom of custom duties are levied on goods imported in India. A) Basic du dutty:

Basic duty is levied on all goods imported into India as prescribed as prescribed in the First Schedule



























P a g e | 69 C) Counte Counterrvail vailing du dutty or add dditi ition ona al dut duty: This

duty is levied equal to excise duty leviable on like articles produced articles produced or manufactured or manufactured

in India. This duty is levied on total cost of imported of imported goods

D) Specific du dutty: The duty is levied in order to order to counter balance balance the excise duty leviable on

the imports going into the production the production of such of such goods produced goods produced in the country. All copies of bill bill of entry of entry along with pay with pay slip are submitted to the accounts section for payment payment of duty. of duty. A stamp is affixed on all copies of bill bill of entry of entry as proof as proof of of having having paid paid the duty. 7. Exami Examin nation ation of of g goods oods and d deelivery ivery f rom rom port ort:

After recovery After recovery of duty, of duty, all copies of bill bill of entry of entry except the original (original is retained in the accounts section) are returned to the importer for importer for getting getting the goods examined in the docks (in case of second of second check examination). check examination). In the docks shed appraiser / examiner shall examiner shall examine goods and if in if in order shall order shall give the out of charge of charge for taking for taking the delivery from port from port trust (custodian of goods) after payment payment of port port trust charges.



























P a g e | 70

LEAD TIME:

Here

lead time means total time which is considered approximately for the for the raw materials to get clearance from customs. Here

while calculating lead time one thing is kept in mind that if any if any delay occurs while submitting the following documents then delay time gets added with the lead time causing a high lead time which eventually effects the production the production.

So, delay occ occur urss if the if the f ollowi ollowing papers are not not s ub ubmitte mitted d on time: time :

D2

1. Import license. 2. Exporters invoice 3. Copy of letter of letter of of credit credit 4. Original copy of bill bill of lading and its non negotiable copy . 5. Two copies of packing packing list 6. Manufactures test certificate. 7. Weight specification. 8. Certificate of origin. of origin. 9. Delivery order issued order issued by shipping company or its agent. 10. 10. Freight certificate (in case of F of F.O.B. consignment) 11. 11. Insurance certificate (in case of F of F.O.B and C&F consignment). 12 Declaration from the importer of importer of having having paid paid

commission

of India.



























P a g e | 71

Custom clearance analysis In

the above page above page the details of information of custom of custom clearance which were found while visiting the custom clearance office and meeting the officers are given and from that an analysis was done through a flowchart which gives a step by step by step clear picture, picture, how the paper the paper work work is is done and the parameters the parameters through which a scrutiny is done on the imported goods. And after clearing after clearing the formalities the goods are submitted to the clearing agents who deliver the goods to the warehouses. FLOWCHART EXP EX PLANATION:

STAR T Preparation of of B Bill- ofof-E Entry

Noting N oting of bill bill of of entry entry

Verification of bill bill of entry by entry by the appraiser





























P a g e | 72

2.

1

3.

of goods goods Inspection of (first check) Goods

Passing of bill-of-entry

Licensing

Computation of of duty duty

T yping

of duty on Billof duty of-E ofEntry on on perforated perforated

N Examination of goods of goods by by nd appraiser (2 appraiser (2 check)

examined earlier ((first earlier check)?

YES Payment of port port trust charges

Delivery from Port



























P a g e | 73

Findings: indings: on WAREHOUSE WARE HOUSE: A Warehouse is a commercial building for storage of goods. Warehouses are used by manufactures, importers, exporters, wholesalers, transport businesses, customs, etc. they are usually large lain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses load and unload goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

WARE HOUSI NG CHAR GES: After visiting After visiting certain ware housing agencies, following details were found, Wear ear housi ousin ng rates are cal calculate ulated d accord accordiing to cer certain tain parameter amete rs:

1. Storage charges.



























P a g e | 74

LEAD TIME OF

Here

WARE HOUSE: WA

lead time means total time which is considered approximately for the for the raw materials to reach

the warehouse for storing for storing of materials and time taken to upload the raw materials in trucks for further transport further transport to the plant. the plant. Here

while calculating lead time one thing is kept in mind that if any if any delay occurs while

unloading the raw materials in the warehouses and/ and/or loading or loading the raw materials back materials back to to the truck for further for further transportation to the plant the plant then delay time gets added with the lead time causing a high lead time which eventually effects the production the production.

So, Possib ssibilities f or or de delay :

D3 & D4



























P a g e | 75

COST A NA NALYSIS OF WA WAREHOUSES

From the above parameters of ware housing charges the cost analysis of the following ware houses were done : 1. Tiwari Warehousing Company. 2. Syndot Packers & Movers. 3. Balmer Lawrie & Co Co. ( Use Used d by Be B erger ger Pain Paints f or or stor storiing R aw mater material ials) 4. A S Syndicate S yndicate Pvt. Ltd.

Storage orage char charges : Storage charges are considered as amount in Rupees per squ square feet per month onth::

28



























P a g e | 76

Cargo loading and unloading charges are Cargo loa loading and unloa unloading char charges : considered as amount in Rupees per Met Metrric- ton: 97 95

95 97 96 95 94 93 92 91 90 89

92

Tewari Warehousing company

Syndot Packers & Movers

Balmer lawrie almer lawrie and co. ltd

Cargo loading & unloading charges(R charges(R s.) s.)

A S Syndicate Syndicate Pvt Ltd

Ins Insura urance reco ecovery very char charges: ges: The insurance charges are given by the ware housing day company over the goods kept in their custody and is charged as Rupees per kg per da





























P a g e | 77

Cost analysis of different of different warehouses: warehouses : SER I AL NO.

1.

COMPA NY NA N AME

Tewari Warehousing

company

ADDRESS

Jani K unj unj Hode Shed Dump R oad oad , Brace Bridge R oad oad , K olkata olkata -88. 88.

STOR AGE CHAR GES

CAR GO GO LOADI NG CHAR GES

CAR GO GO UNLO ADI NG CHAR GES

NSUR A NCE I NSUR

28/- PER sq. f eet/ eet/ month

Rs.95 per

Rs.95 per

Rs.1.5 per kg per day of cargo value

MT

MT

RECOVERY



























P a g e | 78

FI ND NDI N NG: Inbound logistics Lead time ± Port Port to Plant.

LEAD TIME:

Here

lead time means total time which is considered approximately for the for the raw materials

to reach from supplier works supplier works to plant to plant via road ways. While calculating the lead time some points some points are taken into consideration: consideration: 1. Avai Availlability ity of of proper transport ort: This means availability of trucks of trucks of proper size proper size and in



























P a g e | 79 4.Norma .Normall

taken by the driver and driver and his helper for helper for de delay: this delay is considered as the time taken by

their rest their rest and food. According to the truck drivers truck drivers of various of various road transportation agencies: agencies: In

a whole day (24 hours): hours): Time allotted

for food for food (4 times a day) and refreshing: refreshing: 4hrs 4hrs (approx).

Time allotted

for sleep for sleep and rest: rest: 6 hrs.( hrs.(approx).

Total

hours of driving of driving each day: day: 2424-(4+6) (4+6) = 14 hrs a day.



























P a g e | 80

Analysis: Analysis: Inbound logistics Lead time - Port to Plant.

FROM MUMBAI PORT: 8

8

8 6

6 4.5

4

3

4 2 0

8

1.5

2.5

2.5

2.1

2 0.2

2.1



























P a g e | 81

FROM KOLKATA PORT:

8

7

7 6

6 5

6 4 2 0

3

3.5

3 2

2.5

2

2 0.041

0.041





























P a g e | 82

FROM CHENNAI PORT:



























P a g e | 83

OM POR T TO PLA NT R OAD MAP FR OM



























P a g e | 84

TOTAL TIM E CURRENT SENARIO :

A NA NALYSIS



























P a g e | 85 Here

D

the above chart is an O &M Chart where: where: DELAY TIME

Agents involved



























P a g e | 86 86 y

From the above scenario we can see that there are 6 different kinds of delay of delay which slows down the process the process of reaching of reaching the material from source to destination.

y

Here

there is an involvement of 4 of 4 different agents under whose under whose guidance the material





































































































































































































A Project on Supply Chain Management

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