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CHAPTER – 1

INTRODUCTION
1.1 INTRODUCTION TO THE STUDY

LOGISTICS
Logistics is the management of the flow of resources between the point of origin and the
point of consumption in order to meet some requirements, for example, of customers or
corporations. The resources managed in logistics can include physical items, such as food,
materials, equipment, liquids, and staff, as well as abstract items, such as time, information,
particles, and energy. The logistics of physical items usually involves the integration
ofinformationflow, materialhandling, production, packaging, inventory, transportation,
warehouse andoften security. The complexity of logistics can be modeled, analyzed, visualized,
and optimized by dedicated simulation software. The minimization of the use of resources is a
common motivation.

DEFINITION

Planning, execution and control of the procurement , movement and stationing of


personnel, material and other resources to achieve the objectives of a campaign, plan, project or
strategy .It may be defined as the “ management of inventory in motion and at rest “.According
to the Council of Logistics Management, logistics includes the integrated planning, control,
realization, and monitoring of all internal and network-wide material, part, and product flow,
including the necessary information flow, in industrial and trading companies along the complete
value-added chain (and product life cycle) for the purpose of conforming to customer
requirements.

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Given the services performed by logisticians, the main fields of logistics can be broken down as
follows:
 Procurement logistics
 Production logistics
 Distribution logistics
 After sales logistics
 Disposal logistics
 Reverse logistics
 Green logistics
 Global logistics
 Domestics logistics

Procurement logistics:
It consists of activities such as market research, requirements planning, make-or-buy
decisions, supplier management, ordering, and order controlling. The targets in procurement
logistics might be contradictory: maximizing efficiency by concentrating on core competences,
outsourcing while maintaining the autonomy of the company, or minimizing procurement costs
while maximizing security within the supply process.

Production logistics:
It connects procurement to distribution logistics. Its main function is to use available
production capacities to produce the products needed in distribution logistics. Production
logistics activities are related to organizational concepts, layout planning, production planning,
and control.

Distribution logistics:
It has, as main tasks, the delivery of the finished products to the customer. It consists of
order processing, warehousing, and transportation. Distribution logistics is necessary because the
time, place, and quantity of production differs with the time, place, and quantity of consumption.

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Disposal logistics:
It has as its main function to reduce logistics cost(s) and enhance service(s) related to the
disposal of waste produced during the operation of a business.

Reverse logistics:
It denotes all those operations related to the reuse of products and materials. The reverse
logistics process includes the management and the sale of surpluses, as well as products being
returned to vendors from buyers.

Green Logistics:
It describes all attempts to measure and minimize the ecological impact of logistics
activities. This includes all activities of the forward and reverse flows.

Business Logistics:
One definition of business logistics speaks of "having the right item in the right quantity
at the right time at the right place for the right price in the right condition to the right
customer". As the science of process, business logistics incorporates all industry sectors.
Logistics work aims to manage the fruition of project life cycles, supply chains, and resultant
efficiencies. Logistics as a business concept evolved in the 1950sdue to the increasing
complexity of supplying businesses with materials and shipping out products in an increasingly
globalized supply chain, leading to a call for experts called "supply chain logisticians".
In business, logistics may have either an internal focus (inbound logistics) or an external
focus (outbound logistics), covering the flow and storage of materials from point of origin to
point of consumption (see supply-chain management). The main functions of a qualified
logistician include inventory management, purchasing, transportation, warehousing, consultation,
and the organizing and planning of these activities. Logisticians combine a professional
knowledge of each of these functions to coordinate resources in an organization. There are two
fundamentally different forms of logistics: one optimizes a steady flow of material through a
network of transport links and storage nodes, while the other coordinates a sequence of resources
to carry out some project.

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Military logistics
Military logistics is the discipline of planning and carrying out the movement and
maintenance of military forces. In its most comprehensive sense, it is those aspects or military
operations that deal with:
 Design, development, acquisition, storage, distribution, maintenance, evacuation, and
disposition of materiel.
 Transport of personnel.
 Acquisition or construction, maintenance, operation, and disposition of facilities.
 Acquisition or furnishing of services.
 Medical and health service support.

The word "logistics" is derived from the Greek adjective logistikos meaning "skilled in
calculating". The first administrative use of the word was in Roman and Byzantine times when
there was a military administrative official with the title Logista. At that time, the word
apparently implied a skill involved in numerical computations.

Nodes of a distribution network


The nodes of a distribution network include (besides plants and sales points):
 A depot or deposit is a standard type of warehouse thought for storing merchandise (high
level of inventory).
 Distribution centers are thought for order processing and order fulfillment (lower level of
inventory) and also for receiving returning items from clients.
 Transit points are built for cross docking activities, which consist in reassembling cargo
units based on deliveries scheduled (only moving merchandise).

Logistic families
A logistic family is a set of products which share a common characteristic: weight and
volumetric characteristics, physical storing needs (temperature, radiation,...), handling needs,
order frequency, package size, etc. The following metrics maybe used by the company to
organize its products in different families. Physical metrics used to evaluate inventory systems
include stocking capacity, selectivity, superficial utilization, volumetric utilization, transport

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capacity, transport capacity utilization. Monetary metrics used include space holding costs
(building, shelving and services) and handling costs (people, handling machinery, energy and
maintenance).

Handling and Order Processing


Unit loads for transportation of luggage at the airport, in the case the unit load has
protective Function. Unit loads are combinations of individual items which are moved by
handling systems, usually employing a pallet of normed dimensions.

Handling systems include:


Trans pallet handlers, counterweight handler, mast handler, bilateral handlers, trilateral
handlers, AGV and stacker handlers. Storage systems include: pile stocking, cell shelves (either
static or movable), cantilever shelves and gravity shelves. Order processing is a sequential
process involving: processing withdrawal list, picking (selective removal of items from loading
units), sorting (assembling items based on destination), package formation (weighting, labeling
and packing) and order consolidation (gathering packages into loading units for transportation,
control and bill of lading.

Production logistics
The term production logistics describes logistic processes within an industry. Production
logistics aims to ensure that each machine and workstation receives the right product in the right
quantity and quality at the right time. The concern is not the transportation itself, but to
streamline and control the flow through value-adding processes and to eliminate non–value-
adding processes. Production logistics can operate in existing as well as new plants.
Manufacturing in an existing plant is a constantly changing process. Machines are exchanged
and new ones added, which gives the opportunity to improve the production logistics system
accordingly. Production logistics provides the means to achieve customer response and capital
efficiency.
Production logistics becomes more important with decreasing batch sizes. In many
industries (e.g., mobile phones), the short-term goal is a batch size of one, allowing even a single
customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of

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production logistics due to product safety and reliability issues, is also gaining importance,
especially in the automotive and medical industries.

Logistics management
Logistics is that part of the supply chain that plans, implements, and controls the
efficient, effective forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet customer
and legal requirements.
A professional working in the following field of logistics management is called a logistician.
 Materials management
 Channel management
 Distribution (or physical distribution)
 Supply-chain management

The Chartered Institute of Logistics and Transport (CILT), established in the United
Kingdom in 1919, received a Royal Charter in 1926. The Chartered Institute is one of
the professional bodies or institutions for the logistics and transport sectors that
offers professional qualifications or degrees in logistics management.

Warehouse Management Systems and Warehouse Control Systems


Warehouse management systems (WMS) can differ significantly from warehouse control
systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as
statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the
job done by the most effective means. For instance, a WMS can tell the system that it is going to
need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it
acts, other considerations may have come into play or there could be a logjam on a conveyor. A
WCS can prevent that problem by working in real time and adapting to the situation by making a
last-minute decision based on current activity and operational status. WMS and WCS can resolve
these issues and maximize efficiency for companies that rely on the effective operation of their
warehouse or distribution center.

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Logistics Outsourcing
Logistics outsourcing involves a relationship between a company and an LSP (logistic
service provider), which, compared with basic logistics services, has more customized offerings,
encompasses a broad number of service activities, is characterized by a long-term orientation,
and thus has a strategic nature.

Third-party Logistics
Third-party logistics (3PL) involves using external organizations to execute logistics
activities that have traditionally been performed within an organization itself. According to this
definition, third-party logistics includes any form of outsourcing of logistics activities previously
performed in house. For example, if a company with its own warehousing facilities decides to
employ external transportation, this would be an example of third-party logistics. Logistics is an
emerging business area in many countries.

Fourth-party logistics
The concept of a fourth-party logistics (4PL) provider was first defined by Andersen
Consulting (now Accenture) as an integrator that assembles the resources, capabilities, and
technology of its own organization and other organizations to design, build, and run
comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider
targets a single function, a 4PL targets management of the entire process. Some have described a
4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents,
and others, essentially taking responsibility of a complete process for the customer.

As a profession
A logistician is a professional logistics practitioner. Professional logisticians are often
certified by professional associations. One can either work in a pure logistics company, such as
a shipping line, airport, or freight forwarder, or within the logistics department of a company.
However, as mentioned above, logistics is a broad field, encompassing procurement, production,
distribution, and disposal activities. Hence, career perspectives are broad as well. A new trend in
the industry are the 4PL, or fourth-party logistics, firms, consulting companies offering logistics

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services. Some universities and academic institutions train students as logisticians,
offering undergraduate and postgraduate programs.

Transport or Transportation
Transport or Transportation is the movement of people, animals and goods from one
location to another. Modes of transport include air, rail, road, water, cable, pipeline andspace.
The field can be divided into infrastructure, vehicles and operations. Transport is important since
it enables trade between people, which in turn establishes civilizations. Transport infrastructure
consists of the fixed installations necessary for transport, including roads, railways, airways,
waterways, canals and pipelines and terminals such as airports, railway stations, bus
stations, warehouses, trucking terminals, refueling depots (including fueling docks and fuel
stations) and seaports. Terminals may be used both for interchange of passengers and cargo and
for maintenance.

Vehicles travelling on these networks may include automobiles, bicycles, buses, trains,
trucks, people, helicopters and aircrafts. Operations deal with the way the vehicles are operated,
and the procedures set for this purpose including financing, legalities and policies. In the
transport industry, operations and ownership of infrastructure can be either public or private,
depending on the country and mode. Passenger transport may be public, where operators provide
scheduled services, or private. Freight transport has become focused on containerization,
although bulk transport is used for large volumes of durable items. Transport plays an important
part in economic growth and globalization, but most types cause air pollution and use large
amounts of land. While it is heavily subsidized by governments, good planning of transport is
essential to make traffic flow and restrain urban sprawl.

Mode of Transport
A mode of transport is a solution that makes use of a particular type of vehicle,
infrastructure and operation. The transport of a person or of cargo may involve one mode or
several of the modes, with the latter case being called intermodal or multimodal transport. Each
mode has its own advantages and disadvantages, and will be chosen for a trip on the basis of
cost, capability, route and speed.

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Human-powered transport
Human powered transport is the transport of people and/or goods using human muscle-
power, in the form of walking, running and swimming. Modern technology has
allowed machines to enhance human-power. Human-powered transport remains popular for
reasons of cost-saving, leisure, physical exercise and environmentalism. Human-powered
transport is sometimes the only type available, especially in underdeveloped or inaccessible
regions. It is considered an ideal form of sustainable transportation.

Although humans are able to walk without infrastructure, the transport can be enhanced
through the use of roads, especially when using the human power with vehicles, such as bicycles
and inline skates. Human-powered vehicles have also been developed for difficult environments,
such as snow and water, by watercraft rowing and skiing; even the air can be entered
with human-powered aircraft.

Animal-powered transport
Animal-powered transport is the use of working animals for the movement of people and
goods. Humans may ride some of the animals directly, use them as pack animals for carrying
goods, or harness them, alone or in teams, to pull sleds or wheeled vehicles.

Air
A fixed-wing aircraft, commonly called airplane, is a heavier-than-air craft where
movement of the air in relation to the wings is used to generate lift. The term is used to
distinguish from rotary-wing aircraft, where the movement of the lift surfaces relative to the air
generates lift. A gyroplane is both fixed-wing and rotary-wing. Fixed-wing aircraft range from
small trainers and recreational aircraft to large airliners and military cargo aircraft. Two things
necessary for aircraft are air flow over the wings for lift and an area for landing. The majority of
aircraft also need an airport with the infrastructure to receive maintenance, restocking, refueling
and for the loading and unloading of crew, cargo and passengers. While the vast majority of
aircraft land and take off on land, some are capable of takeoff and landing on ice, snow and calm
water.

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The aircraft is the second fastest method of transport, after the rocket. Commercial jets
can reach up to 955 kilometres per hour (593 mph), single-engine aircraft 555 kilometers per
hour (345 mph). Aviation is able to quickly transport people and limited amounts of cargo over
longer distances, but incur high costs and energy use; for short distances or in inaccessible
places helicopters can be used.[1] As of April 28, 2009 The Guardian article notes that, "the
WHO estimates that up to 500,000 people are on planes at any time."

Rail transport
Rail transport is where a train runs along a set of two parallel steel rails, known as a
railway or railroad. The rails are anchored perpendicular to ties (or sleepers) of timber, concrete
or steel, to maintain a consistent distance apart, or gauge. The rails and perpendicular beams are
placed on a foundation made of concrete or compressed earth and gravel in a bed of ballast.
Alternative methods include monorail and maglev.
A train consists of one or more connected vehicles that run on the rails. Propulsion is
commonly provided by a locomotive that hauls a series of unpowered cars that can carry
passengers or freight. The locomotive can be powered by steam, diesel or by electricity supplied
by trackside systems. Alternatively, some or all the cars can be powered, known as a multiple
unit. Also, a train can be powered by horses, cables, gravity, pneumatics and gas turbines. Railed
vehicles move with much less friction than rubber tires on paved roads, making trains
more energy efficient, though not as efficient as ships.
Intercity trains are long-haul services connecting cities; modern high-speed rail is capable
of speeds up to 350 km/h (220 mph), but this requires specially built
track. Regional and commuter trains feed cities from suburbs and surrounding areas, while intra-
urban transport is performed by high-capacity tramways and rapid transits, often making up the
backbone of a city's public transport.
Freight trains traditionally used box cars, requiring manual loading and unloading of
the cargo. Since the 1960s, container trains have become the dominant solution for general
freight, while large quantities of bulk are transported by dedicated trains.

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Road transport
A road is an identifiable route, way or path between two or more places. Roads are
typically smoothed, paved, or otherwise prepared to allow easy travel; though they need not be,
and historically many roads were simply recognizable routes without any formal
construction or maintenance. In urban areas, roads may pass through a city or village and be
named as streets, serving a dual function as urban space easement and route. The most common
road vehicle is the automobile; a wheeled passenger vehicle that carries its own motor. Other
users of roads include buses, trucks, motorcycles, bicycles and pedestrians. As of 2002, there
were 590 million automobiles worldwide. Automobiles offer high flexibility and with low
capacity, but are deemed with high energy and area use, and the main source of noise and air
pollution in cities; buses allow for more efficient travel at the cost of reduced flexibility. Road
transport by truck is often the initial and final stage of freight transport.

Water
A watercraft—such as a barge, boat, ship or sailboat—over a body of water, such as
a sea, ocean, lake, canal or river. The need for buoyancy is common to watercraft, making the
hull a dominant aspect of its construction, maintenance and appearance. In the 19th century the
first steam ships were developed, using a steam engine to drive a paddle wheel or propeller to
move the ship. The steam was produced in a boiler using wood or coal and fed through a
steam external combustion engine. Now most ships have an internal combustion engine using a
slightly refined type of petroleum called bunker fuel. Some ships, such as submarines,
use nuclear power to produce the steam. Recreational or educational craft still use wind power.
While some smaller craft use internal combustion engines to drive one or more propellers, or in
the case of jet boats, an inboard water jet. In shallow draft areas, hover craft are propelled by
large pusher-prop fans. Although slow, modern sea transport is a highly efficient method of
transporting large quantities of goods. Commercial vessels, nearly 35,000 in number, carried
7.4 billion tons of cargo in 2007. Transport by water is significantly less costly than air transport
for transcontinental shipping, short sea shipping and ferries remain viable in coastal areas.

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Other modes
Pipeline transport sends goods through a pipe, most commonly liquid and gases are sent,
but pneumatic tubes can also send solid capsules using compressed air. For liquids/gases, any
chemically stable liquid or gas can be sent through a pipeline. Short-distance systems exist
for sewage, slurry, water and beer, while long-distance networks are used
for petroleumand natural gas. Cable transport is a broad mode where vehicles are pulled
by cables instead of an internal power source. It is most commonly used at steep gradient.
Typical solutions include aerial tramway, elevators, escalator and ski lifts; some of these are also
categorized as convey or transport.
Spaceflight is transport out of Earth's atmosphere into outer space by means of a space
craft. While large amounts of research have gone into technology, it is rarely used except to put
satellites into orbit, and conduct scientific experiments. However, man has landed on the moon,
and probes have been sent to all the planets of the Solar System. Suborbital spaceflight is the
fastest of the existing and planned transport systems from a place on Earth to a distant other
place on Earth. Faster transport could be achieved through part of a Low Earth orbit, or
following that trajectory even faster using the propulsion of the rocket to steer it.

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1.2 ABOUT THE INDUSTRY

WAREHOUSE:

A warehouse is a commercial building for storage of goods. Warehouses are used by


manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are
usually large plain buildings in industrial areas of cities and towns and villages. They usually
have loading docks to load and unload goods from trucks. Sometimes warehouses are designed
for the loading and unloading of goods directly from railways, airports, or seaports. They often
shave cranes and forklifts for moving goods, which are usually placed on ISO standard pallets
loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare
parts, components, or finished goods associated with agriculture, manufacturing and production.

WAREHOUSE FUNCTION:

Display of goods for sale

These displayed goods for the home trade. This would be finished goods- such as the
latest cotton blouses or fashion items. Their street frontage was impressive, so they took the
styles of Italianate Palazzos.

Richard Cobden's construction in Mosley Street was the first palazzo warehouse. There
were already seven warehouses on Portland Street when they commenced building the elaborate
Watts Warehouse of 1855, but four more were opened before it was finished. It was this type of
warehouse that inspired the Germans in Düsseldorf and Munich to name their prestigious
department stores Warenhäuser.

Overseas warehouses

These catered for the overseas trade. They became the meeting places for overseas
wholesale buyers where printed and plain could be discussed and ordered.[1] Trade in cloth in
Manchester was conducted by many nationalities.

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Behrens Warehouse is on the corner of Oxford Street and Portland Street. It was built for
Louis Behrens & Son by P Nunn in 1860. It is a four storey predominantly red brick build with
23 bays along Portland Street and 9 along Oxford Street.[3] The Behrens family were prominent
in banking and in the social life of the German Community in Manchester. [4][5]

Packing warehouses

The main purpose of packing warehouses was the picking, checking, labeling and
packing of goods for export.[1] The packing warehouses: Asia House, India House and Velvet
House along Whitworth Street were some of the tallest buildings of their time.

Warehouse storage purpose is to provide provisions for easy access facilities. Security systems
with closely monitored 24-hour CCTV surveillance, infrared recording and on-ground security is
provided for safety purposes. Climate control facility is also catered for preserving required
objects.

Railway warehouses

Warehouses were built close to the major stations in railway hubs. The first railway
warehouse to be built was opposite the passenger platform at the terminus of the Liverpool and
Manchester Railway. There was an important group of warehouses around London Road station
(now Piccadilly station).In the 1890s the Great Northern Railway Company’s warehouse was
completed on Deansgate: this was the last major railway warehouse to be built.

The London Warehouse Picadilly was one of four warehouses built by the Manchester,
Sheffield and Lincolnshire Railway in about 1865 to service the new London Road Station. It
had its own branch to the Ashton Canal. This warehouse was built of brick with stone detailing.
It had cast iron columns with wrought iron beams. [6]

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Canal warehouses

All these warehouse types can trace their origins back to the canal warehouses which
were used for trans-shipment and storage. Castlefield warehouses are of this type- and important
as they were built at the terminus of the Bridgewater Canal in 1761.

Modern trends

Traditional warehousing has declined since the last decades of the 20th century, with the
gradual introduction of Just In Time (JIT) techniques. The JIT system promotes product delivery
directly from suppliers to consumer without the use of warehouses. However, with the gradual
implementation of offshore outsourcing and offshoring in about the same time period, the
distance between the manufacturer and the retailer (or the parts manufacturer and the industrial
plant) grew considerably in many domains, necessitating at least one warehouse per country or
per region in any typical supply chain for a given range of products.

Recent retailing trends have led to the development of warehouse-style retail stores.
These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than
conventional retail shelving. Typically, items ready for sale are on the bottom of the racks, and
crated or palletized inventory is in the upper rack. Essentially, the same building serves as both
warehouse and retail store.Another trend relates to Vendor Managed Inventory (VMI). This
gives the vendor the control to maintain the level of stock in the store. This method has its own
issue that the vendor gains access to the warehouse.

Large exporters/manufacturers use warehouses as distribution points for developing retail


outlets in a particular region or country. This concept reduces end cost to the consumer and
enhances the production sale ratio.

Cross docking is a specialised type of distribution center (DC) in that little or no


inventory is stored and product is received, processed (if needed) and shipped within a short
timeframe. As in warehousing, there are different types of cross docks. Reverse logistics is
another type of warehousing that has gained attention in our "green-conscious" world. The term
refers to items that are going from the end user back to the distributor or manufacturer.

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Cool warehouses and cold storage

Cold storage preserves agricultural products. Refrigerated storage helps in eliminating


sprouting, rotting and insect damage. Edible products are generally not stored for more than one
year. Several perishable products require a storage temperature as low as -25°C.Cold storage
helps stabilize market prices and evenly distribute goods both on demand basis and time basis.
The farmers get the opportunity of producing cash crops to get remunerative prices. The
consumers get the supply of perishable commodities with lower fluctuation of prices.

Ammonia and Freon compressors are commonly used in cold storage warehouses to
maintain the temperature. Ammonia refrigerant is cheaper, easily available and has a high latent
heat of evaporation but it is also highly toxic and can form an explosive mixture when mixed
with oil containing high percentage of carbon. Insulation is also important, to reduce loss of cold
and to keep different sections of the warehouse at different temperatures.

There are two main types of refrigeration system used in cold storage warehouses, a
Vapour absorption system (VAS) and Vapour compression system (VCS). VAS, although
comparatively costlier, is quite economical in operation and adequately compensates the higher
initial investment.The temperature necessary for preservation depends on the storage time
required and the type of product. In general, there are three groups of products, foods that are
alive (e.g. fruits and vegetables), foods that are no longer alive and have been processed in some
form (e.g. meat and fish products), and commodities that benefit from storage at controlled
temperature (e.g. beer, tobacco).

Location is a very critical aspect for the success of cold storage. It should be in close
proximity of a growing area as well as a market, be easily accessible for heavy vehicles, and
have uninterrupted power supply.

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Cold storage and the law

There are state and local laws which regulate the cold store industry, requiring safe
working conditions for employees, and operational procedures must be in accordance with these
laws. Those companies which do their homework and prepare in advance for inspections and
other routine enforcement protocols will be able to continue operating at full capacity, ensuring
greater customer service and more product flow seven days a week.

Refrigerated warehouse industry

Refrigerated warehousing industries make up approximately one fifth of the market size
of general warehousing.[9] Most of the market is concentrated in the Midwest, but California has
the largest market share of the states. In 2006, the average market size of the industry was
slightly over $3 billion, and the market continued growing in the following half decade.

TYPES OF WAREHOUSE

Public Warehouse

It is operated in. accordance with the law for the purpose of storing goods for other
people at profit. Some times a large arrives in part when it is not Convenient for the importer to
take in into his custody. During suchperiods these goods have to be stored somewhere. Similarly,
even in trade they have to be stored between the time they are made and the time they are
required for use. A public warehouse provides facilities for storing all such goods. It thus render
many useful services to the trade. It enables smaller sellers to carry regional stocks. This factor is
very important in competitive markets.

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Private Warehouse

This type of warehouse belongs to the owner of goods, usually a wholesaler, who stored
his goods. There in order to supply to retailers in future. Goods are produced in large quantities
in anticipation of future demand and for the unknown customers. The ultimate wholesaler finds it
necessary to purchases goods in advance in large bulk and to store them for future supply.

Bonded Warehouses

It is one which is licensed to accept imported goods for storage before payment of
customs duties. By storing his goods in a bonded warehouse the importer gains some control
without paying the duty. The goods in bonded warehouses are under the strict supervision of
customs officers and before the owner can interfere with them, previous permission is necessary.

Government Warehouse

This type of warehouse is mainly located at the important sea ports and in most cases is
owned by the Dock Authorities. The general public can also use this group of warehouse on
payment of fixed charges. If a customer cannot pay the rent within the specified period or time,
then the authority can recover the rent by disposing of the goods.

Picking and Packing:

Pick and pack is a part of a complete supply chain management process that is commonly
used in the retail distribution of goods. It entails processing small to large quantities of product,
often truck or train loads and disassembling them, picking the relevant product for each
destination and re-packaging with shipping label affixed and invoice included. Usual service
includes obtaining a fair rate of shipping from common as well as expediting truck carriers.

Pick and Pack services are offered by many businesses that specialize in supply chain
management solutions.

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Case picking is the gathering of full cartons or boxes of product. This is often done on a
pallet. In the consumer products industry, case picking large quantities of cartons is often an
entry level employee's task. There is, however, significant skill required to make a good pallet
load of product. Key requirements are that cartons not be damaged, they make good use of the
available cube (space) and be quick to assemble.

Warehouse management system products create pick paths to minimize the travel
distance of an order selector, but often neglect the need to maximize the use of cube, segregate
products that should not touch or minimize damage.

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1.3 COMPANY PROFILE

Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor
Company in India. It is the 2nd largest automobile manufacturer in India. it was formed in 6 May
1996 by the Hyundai Motor Company of South Korea. When Hyundai Motor Company entered
the Indian Automobile Market in 1996 the Hyundai brand was almost unknown throughout
India. During the entry of Hyundai in 1996, there were only five major automobile
manufacturers in India, i.e. MUL, HM, PAL, TELCO and M&M. Daewoo had entered the Indian
automobile market with Ceil just three years back while Ford, Opel and Honda had entered less
than a year back.For more than a decade till Hyundai arrived, MarutiSuzuki had a complete
dominance and monopoly over the Passenger Cars segment because TELCO and M&M were
solely Utility and Commercial Vehicle Manufacturers.

HMIL became the second largest automobile manufacturer and the largest automobile
exporter in India. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of
Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the
second largest car manufacturer in India.HMIL’s manufacturing plant near Chennai claims to
have the most advanced production, quality and testing capabilities in the country. To cater to
rising demand, HMIL commissioned its second plant in February 2008, which produces an
additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units
per annum.HMC has set up a research and development facility(Hyundai Motor India
Engineering - HMIE) in the cyber city of Hyderabad.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in
India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to
more than 120 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It
has been the number one exporter of passenger cars of the country for the sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 307 strong dealer
network and 627 strong service points across India, which will see further expansion in
2010.[citation needed] In July 2012, ArvindSaxena, the Director of Marketing and Sales stepped down
from the position after serving the company for 7 long years.

20
Sales and service network

As of March 2011, HMIL has 451 dealerships and more than 647 Hyundai Authorised
Service Centers in 340 cities across India. HMIL also operates its own dealerships known as
Hyundai Motor Plazas in large metros across India. HMIL has the second largest sales and
service network in India after Maruti Suzuki.

Hyundai Motor India Limited Annual Sales

Year Domestic Sales Exports Total

1998 8,447 0 8,447

1999 17,627 20 17,647

2000 82,896 3,823 86,719

2001 87,175 6,092 93,267

2002 102,806 8,245 111,051

2003 120,325 30,416 150,741

2004 139,759 75,871 215,630

2005 156,291 96,560 252,851

2006 186,174 113,339 299,513

2007 200,411 126,749 327,160

2008 245,397 243,919 489,316

2009 289,863 270,017 559,880

21
Hyundai Motor India Limited Annual Sales

Year Domestic Sales Exports Total

2010 356,717 247,102 603,819

2011 373,709 242,330 616,039

2012 391,276 250,005 641,281

Exports

HMIL currently exports vehicles to more than 110 countries across Europe, Africa,
Middle East, Latin America and Asia. It has been the number one exporter of passenger cars for
the sixth year in a row in India.

Sales Performance

Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer and the
largest passenger car exporter, registered 4.6% growth in Exports for the month of May 2013.
The domestic sales accounted for 32,102 units and exports stood at 24,754 units.

Company Milestones

 1996: Hyundai Motor India Limited was established at its first plant near Chennai.
 1998: the first Santro was produced.
 2000: Hyundai launched its 100,000th car from Chennai. It also launched the Zip drive. Santro
crossed 100,000 cars in sales and exported 760 Accents and Santro cars to Algeria.
 2001: The 200,000th car was rolled out. The new look hatchback Santro and luxury sedan
Sonata were launched.

22
 2002: the 1.1 litre E-Epsilon engine was launched globally. In 2002, the 300,000th car of
Hyundai was launched with the launch of the Accent Viva. The Santro Automatic Transmission
as well as the Accent CRDiwere launched.
 2003: Hyundai started exports to Latin America. It rolled out the 400,000th car. It started
exporting the Santro Xing and SUV Terracan in the same year.
 2004: Hyundai Motors India Limited crossed sales figure of 100,000 in the export market.
 2005: Santro became known as the largest selling car of Hyundai. Hyundai launched the SUV
Tuscon. It also launched the Global Dealer Management System. This was a great “launch”
year for Hyundai as it
 launched the Santro Xing with eRLX technology, the Sonata, and the export version of its Getz
car – the GLE. It also exported its 200,000th car overseas.
 2006: Hyundai launched its 1, 000,000 car and also launched the HMIL Foundation. It launched
both the Hyundai Verna – in Petrol and Diesel. It exported its 300,000th car.
 2007: the company launched the Getz Prime, Verna CRDiSx, the Sonata CRDi Automatic,
theSantro CNG and exported its 400,000th car.
 2008: Hyundai inaugurated its 2nd plant in Chennai, and launched the following cars: i10 with
the Kappa engine, Santro Eco and the i20 hatchback.
 2009: Hyundai launched many cars- the new Sonata Transform, the new Verna Diesel
Automatic, and the i10.
 2010: Hyundai launched the i10 electric car in India. This was the year it had 10 lakh car
exports, launched the Verna transform, had 30 lakh sales, including 20 lakh domestic sales. It
also launched the all new next Generation i10, and the Santa Fe.

Vision & Values

Hyundai released its Vision 2020 to establish the firm as the global leader in the
automobile market. The company focuses on key vision strategies:

23
Automotive Vision

“To become a trusted lifetime partner of our customers, we will bring a new perspective
to automobiles through innovative mobility solutions based on human-centric, eco-friendly
technologies and services.”

Steel Vision

“As an eco-friendly, resource-circulating company, we will lead a new era in the steel
industry by providing high value-added products and services and realizing world's best
competitiveness based on cooperative relations with our stakeholders.”

Construction Vision

“As a global leading provider of high-value engineering solutions, we will create the
foundation for a better life through cross-business synergy and convergence with future
technologies.”

Hyundai focuses on five main values: Customer, Challenge, Collaboration, People and Globality.
Providing customers top service will be at the top of their agenda. The company will venture into
new areas and not remain traditional. The company will have a spirit of collaboration. People
will be respected and valued. The company is not limited to country-centric areas but will be
known in the global arena.

24
MOBIS INDIA:

Hyundai Mobis (short for Mobile and System) is an autoparts company headquartered in
Seoul, South Korea. It was established in 1977 as Hyundai Precision & Industries
Corporation:In 2000, the company changed its name to Hyundai Mobis. The company forms
the 'parts and service' arm for the South Korean automakers Hyundai Motor Company and Kia
Motors.

Hyundai groups:

Construction

Railroad and defense vehicles

Machine Tools and Heavy Industries

Advertising agencies

Technical development

Electrical holdings

Logistics

Information technology

Economy and finance

Travel resort

Sports marketing

25
1.4 OBJECTIVES OF THE STUDY
 To Understand the functions and components of logistics.
 To identify factors of supply chain processes at mobis.
 To study about logistics and supply chain integration in mobis.
 To analyze performance in the supply chain at mobis.

1.5 SCOPE OF THE STUDY


The study will be helpful in finding out the scale of implementation and evaluating
the strengths and weaknesses of warehouse currently adopted by the industry as a whole.

1.6 LIMITATIONS OF THE STUDY


 The study period was very shorter than the required time and hence the information was
collected during short period of time.
 The study is applicable to Warehouse management only and not to any other purpose

26
CHAPTER 2

REVIEW OF LITERATURE

Jiun-Yan Shiauand (2013)The separation of picking and packing processes of a warehouse


management system usually brings extra storage buffers and relatively longer operating time.
This paper develops a hybrid algorithm to generate a picking sequence for combining picking
and packing operations. The algorithm includes three elements: container selection, loading
configuration, and loading/picking sequence. A generic warehouse management system with the
proposed sequential order picking function for a tea factory in central Taiwan has been
implemented to demonstrate the elimination of storage buffers and the reduction of operation
time.

Ming-Chang LeeThis paper is concerned with a performance evaluation model for the order
picking facility for warehouse design in a supply center (SC) by reducing the travel distance of
transporters. This study includes important detail aspects of warehouse design and operational
parameters such as warehouse size, rack size, number of transporters, and the system
performance. In this study, we develop both mathematical and simulation modes considering
probabilistic demand and picking frequency, and using simulation S/W, AutoMod. The results
are compared and validated via simulation methods using AutoMod simulator. Finally, we
developed a systematic and practical computer program and it was known that the proposed
method is potentially efficient and useful in performance analysis for order picking warehouse
problems.

A warehouse is “a commercial building forbuffering and storage of goods, or an intermediate


areafor storing of raw materials or products until they areneeded for production or consumption”.
(Chua & Teo2008)

27
Warehousing, being an essential component oflogistics, is a key aspect of modern supply chains
andplays a critical role in the success or failure ofbusinesses today. (Frazelle,2002)

If one takes a closerlook at the detailed breakdown of the operating cost ofa particular company,
warehousing contributes to about20% of logistics costs. (Kearney, 2004)

The evolving role of warehouse has exertedManagement System (WMS). A WMS is a


databasesignificant impact on the evolvement of Warehousedriven IT tool used to improve the
efficiency of thewarehouse by coordinating warehouse activities and tomaintain accurate
inventory by recording warehousetransactions. (Shiau & Lee, 2009)

warehouse means any building structure or other protected enclosure which is used or may be
used for the purpose of storing goods on behalf of the depositors but doesn’t include cloakroom
attached to hotels, railways stations and the premises of other public carriers alike. (Warehouse
Act 1959, logistics management, REJL ISMAIL, page no 210)

Warehouse management involves many basic warehousing decisions such as ownership, number,
size, stocking and location. What type of organization, how many, what size, what and where.
These basic warehousing decisions are made in a trade off frame work. The criterion of total
cost(including the services impact on lost sales ) is used to make the decision.( for example
customers service can be improved by having many warehouses because products are located
closer to the customers, but the warehousing, inventory and possibly transportation cost would
be higher. The total cost will be the determining factor. (Logistics and supply chain
management, k.shridharan bhat, page no 186)

28
Warehouse management subsystem assisting in the management of product flowing through and
sstored in the facilities of the logistics network. The key elements of WMS a.)Receiving b.) Put-
away c.)Inventory management d.)Order processing and retrieving and e.) Shipment preparation
(Logistics and supply chain management, k.shridharan bhat, page no 338)

When distribution facilities are required in a logistics system, a firm can chosen between the
services of a warehouse specialist or operating its own facility. The decision is broader than
simply selecting a facility to store inventory, since many value-adding activities may be
performed during the time products are warehoused. Examples of such activities are sorting,
sequencing, order selection, transportation consolidation, and in some cases, product
modification and assembly related to postponement strategies. (Supply chain logistics
management, Donald J bowersox, page no 28)

Warehousing incorporates many different aspects of logistics operation. Because of the many
types of warehouse, the presentation does not fit the neat classification schemes used in areas
such as order management, inventory, and transportation. A warehouse has traditionally been
viewed as a place to hold or store interview. Storage of product is ideally held minimum. The
chapter provides a foundation for understanding the value warehousing contributes the in the
logistics process. (Supply chain logistics management, David J Closs, page no 212)

It is essential tohandle the warehouse resources, such as stock keeping units(SKUs), pallets and
racks, pallet trucks and forklifts, and warehousestaff members, efficiently and effectively in order
to have smoothmanufacturing operations, to reduce inventory, lower processingstorage, and
transshipment costs, and increase productivity withinfacilities Within the chain, currently,
warehousemanagement systems (WMSs) are adopted to handle the warehouse resources and
operations. (M Bixbly Cooper, Supply chain management, page no 150)

29
Some of the methods are make for fast retrieval time while othersprovide high accuracy of case
retrieval(Sun and Finnie (2004) illustrate that the nearest-neighbour retrieval (NNR) system
isone of the most simple and common CBR techniques which canprovide an assessment of the
degree of similarity between problem descriptions attached to a case in the case base
repositoryand the description of the current problem that needs to be.(Cheung, Chan, Kwok,
Lee, & Wang, 2006)

Warehouse is a place where materials are stocked. Warehouse deals with wide range of computer
spares like driver’smonitors, add-on cards and multimedia products etc. For that, they
needseveral materials and components. To get better and sufficientcomponents with least cost
and with better quality they place the orderto the suppliers to accomplish the purchase task. After
receiving therequired material the finished goods are prepared and dispatchedService for finished
goods is done. (Logistic s management, Anne T.Coughlan & Eri Anderson,page no 5)

According to Kaihara (2003) and Liu et al. (2005)is a valuable information sharing channel
among the suppliersmanufacturing and storage facilities, distributors and customersfor facilitating
the key business activities of the sale, productionand delivery of a particular product. Thus, the
main principle ofsupply chain management (SCM) is to integrate effectively thematerial ows and
related information within the demand andsupply processes a supply chain. (Soroor & Tarokh,
2006)

However, due to the global extension of supply chain networks, enterprises need to collaborate
with suppliers, customers, or even competitors in differenttime zones, across numerous
organizational boundaries, and in a variety of cultures. Under these circumstances, the challenge
ofallocating production, transportation, and inventory resources tosatisfy demand is daunting.
(Simchi-Levi, Kaminsky, & Simchi-Levi2004)

30
1993 Dec 31Kopicki, R.; Berg, M.J.; Legg, L.Reuse and recycling - reverse logistics
opportunities:
It is based on the premise that proactive management of environmental issues is
becoming vital to corporate success, and that these issues are creating new roles and
opportunities for logistic professionals. Examined in detail are nonhazardous waste reduction
activities; reuse and recycling activities; and source reduction. The book is based on in-depth
interviews with seventeen firms and several trade associations acknowledged to be leaders in
waste reduction efforts. Topics discussed include adapting inbound supply chains to use more
recycled goods; minimizing packaging waste; reverse distribution capabilities for taking back
products and packaging; and the use of third party services for recycling, reuse, and source
reduction activities. Included are two case analyses of progressive firms like E.I. DuPont
Nemours and Home Depot and their waste reduction efforts.

(2011)Patricia J. Daugherty, (The University of Oklahoma, Norman, Oklahoma, USA) the


review of supply chain

Research is warranted examining success to date, implications for future


collaborative-type relationships, and guidelines for establishing relationships. Other topics
include managing relationships and power imbalances, developing appropriate metrics to
monitor relationship performance, leveraging the synergy of cross-firm relationships to develop
innovative approaches, and examining the co-creation of services.

(2004) Joseph L. Cavinato, (Thunderbird – The Garvin School of International


Management, Glendale, Arizona, USA) Supply chain logistics risks

Risks and uncertainties are ever more noted and factored into decision making today, and
those stemming from supply chains are prominent in the competitiveness and viability of
companies and organizations. The idea that every supply chain is made up of five internal
chain/network constructs is presented, and these are physical, financial, informational, relational,
and innovational. Further, four categorizations of relevant product/supply costs are presented as
are four types of supply risks.

31
1994 Pohlen, T L La Londe, B J IMPLEMENTING ACTIVITY-BASED COSTING (ABC)
IN LOGISTICS

Activity-based costing (ABC) represents a relatively recent phenomenon within logistics


management practice. Many firms have explored ABC as a means to more accurately trace
overhead costs to specific products and customers. Initial ABC systems have primarily focused
on manufacturing, and only a limited number of leading-edge firms have attempted to implement
ABC for assigning logistics costs.

2000 LYNCH, CLIFFORD F LOGISTICS OUTSOURCING: A MANAGEMENT GUIDE


While one of common usage, will be referenced as little as possible. Logistics
outsourcing is about subcontracting logistics activities to firms that are equipped to provide the
services. The concepts of third and even fourth parties quite often serve to confuse, rather than
enhance, the relationship.

(1996) Dick A. van Damme, (Eindhoven University of Technology), Marinus J. Ploos van
Amstel, (Eindhoven University of Technology) Outsourcing Logistics Management
Activities

Logistics management are steadily growing and account for an increasing proportion of
the gross national product. Logistics costs have become an important part of the added value of
products and logistics management is increasingly regarded as an important weapon in the
international competitive struggle, in particular by large market-oriented companies. The
emphasis in marketing strategies is shifting from product and price to promotion and place.
Rapidly changing customer demands have an increasing effect on company policies.

32
(2001) RUIJGROK,CEUROPEAN TRANSPORT INSIGHTS AND CHALLENGES. IN:
HANDBOOK OF LOGISTICS AND SUPPLY-CHAIN MANAGEMENT
A number of structural changes have occurred in European transport in the last 10 years.
The changes have been induced by both political and technological circumstances. The paper
reviews these circumstances and describes the influence they have had on the structure of the
demand for freight transport. The aim of the paper is to provide a brief overview of the main
developments that influence the demand for freight transport in Europe

10MAY 2011 Theodore P. Stank Ph.D., Thomas J.Goldsby Ph.D., Shawnee K. Vickery
Ph.D., Katrina Savitskie LOGISTICS SERVICE PERFORMANCE: ESTIMATING ITS
INFLUENCE ON MARKET SHARE
Research examines the relationships among three dimensions of logistics service
performance (operational, relational, and cost performance), customer satisfaction, customer
loyalty, and market share. Perceptions of customers of third party logistics (3PL) providers are
used to assess 3PL performance constructs. Of the three dimensions of service performance,
relational performance is the single most important factor in engendering customer satisfaction.
The research supports the strong relationship between customer satisfaction and loyalty
identified in previous studies. It also establishes an empirical link between customer loyalty and
a measure of market share that is anchored by objective, secondary data.

(2005) Amit Sachan, (Management Development Institute, Gurgaon, India,


and),SubhashDatta, (Operations Management Area, Management Development Institute,
Gurgaon, India) Review of supply chain management and logistics research

The review of SCM and logistics research is based on 442 papers published from 1999 to
2003 in the following three academic journals Journal of Business Logistics, International
Journal of Physical Distribution & Logistics Management, and Supply Chain Management: An
International Journal. The gaps identified in the review were: there are very few inter
disciplinary studies; innovative application of secondary data is lacking, (c) research at inter
organization level is scanty; and the current state of research has failed to integrate all the firms
in the value chain and treat them as a single entity.

33
2005 GOURDIN Kent Global Logistics Management
Global Logistics Management the text has been thoroughly revised and updated, and new
examples have been added reflecting recent developments. Helps readers to understand and
appreciate the power of managing logistics for profit and competitive advantage. Educates
readers about the nature of individual logistics activities and how they can be woven together.
The focus throughout is global, and examples are drawn from various parts of the world. The text
has been thoroughly revised and updated throughout to keep it current. Now includes new
examples reflecting recent developments and current preoccupations, including security and
global

16 Apr 2012 F. Viania, M. Saluccib, F. Robolc, G. Oliverid & A. Massae Design of a UHF
RFID/GPS Fractal Antenna for Logistics Management

In this paper, a planar multi-band antenna suitable for the integration in portable terminal
systems is described. The antenna operates at UHF RFID (915 MHz) and GPS-L1 (1715 MHz)
frequency bands to supply chain operations and asset tracking in supply chain management. The
performance of the proposed antenna is assessed through numerical and experimental tests

(1995) Huan Neng Chiu, (National Taiwan Institute of Technology, Taipei, Taiwan, and
Republic of China) the integrated logistics management system: a framework and case
study

The exploration of each area is enriched with Taiwanese logistics management practices
and experiences. Includes a case study of one prominent food processor and retailer in Taiwan in
order to demonstrate the pragmatic operations of the integrated logistics management system.
Also, a survey of 45 Taiwanese retailers was conducted to investigate the extent of logistics
management in Taiwan. Concludes by suggesting how distribution companies can overcome
noticeable logistics management barriers, build store automation systems, and follow the key
steps to logistics success.

34
(1998) J. Allen, (Transport Studies Group, University of Westminster, London, UK), M.
Browne, (Transport Studies Group, University of Westminster, London, UK), A. Hunter,
(Scottish Agricultural College,
Penicuik, Scotland, UK), J. Boyd, (Scottish Agricultural College, Penicuik, Scotland, UK),
H. Palmer, (Scottish Agricultural College, Penicuik, Scotland, UK) Logistics management
and costs of biomass fuel supply
The logistics planning and management and costs of supplying biomass fuels to
biomass-fired power stations in the UK. Defines biomass fuels and the reasons for the growth in
interest in their use for electricity generation. The activities and parties involved in the biomass
fuel supply chain are discussed together with the management of the chain in order to achieve
smooth and consistent flow of biomass fuel to power stations. Explains the approach used to
modeling the delivered costs of biomass fuels for four types of biomass fuel included in the
project: forest fuel, short rotation coppice, straw and miscanthus. Comments are given on the
environmental impacts of the fuel supply chains.

(1991) John Gattorna, Abby Day, John Hargreaves Effective Logistics Management

The logistics mix are described in an effort to create an understanding of the total
logistics concept. Chapters include an introduction to logistics; the strategic role of logistics,
customer service levels, channel relationships, facilities location, transport, inventory
management, materials handling, interface with production, purchasing and materials
management, estimating demand, order processing, systems performance, leadership and team
building, business resource management

35
(2003) A. Gunasekaran, (Department of Management, University of Massachusetts, North
Dartmouth, Massachusetts, USA), E.W.T. Ngai, (Department of Management, The Hong
Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, PR China) The successful
management of a small logistics company

This company's strategic alliances with both clients and customers have helped to
improve the utilization of its resources, such as warehouse space and transportation fleets. Also,
the company is in the process of expanding its operations across greater China, with the objective
of becoming a full-pledged 3PL company. The analysis of this case focuses on the critical
success factors (strategies and technologies) that have allowed a small company started only in
1996 to become so successful in its operations. Also, a framework has been provided for the
company to develop its logistics operations as a full-pledged 3PL company.

1995-12 Daugherty, P JGermain, R Droge, and C PREDICTING EDI TECHNOLOGY


ADOPTION IN LOGISTICS MANAGEMENT: THE INFLUENCE OF CONTEXT AND
STRUCTURE

A survey of manufacturers was undertaken in order to better understand the influence of


select contextual and structural dimensions on one type of technology, electronic data
interchange (EDI). Logistic regression model results indicate a positive relationship between EDI
adoption and three predictor variables: firm size as reflected by the number of factories,
involvement in formal benchmarking, and centralization of the EDI an option decision.

(1997) Martha C. Cooper, (The Ohio State University), Douglas M. Lambert, (The Ohio
State University), Janus D.Pagh, (The Ohio State University) Supply Chain Management:
More Than a New Name for Logistics

Practitioners and educators have variously addressed the concept of supply chain
management (SCM) as an extension of logistics, the same as logistics, or as an all-encompassing
approach to business integration. Based on a review of the literature and management practice, it
is clear that there is a need for some level of coordination of activities and processes within and

36
between organizations in the supply chain that extends beyond logistics. We believe that this is
what should be called SCM. This article proposes a conceptual model that provides guidance for
future supply chain decision-making and research.

(2001) Rhonda R. Lummus Dennis W. Krumwiede, Robert J. Vokurka, The relationship


of logistics to supply chain management: developing a common industry definition
Over the past few years there has been confusion and disagreement among general
business practitioners and operations professionals concerning the terms “logistics” and “supply
chain management”. Various formal definitions have been offered for both terms. In addition, the
common usage of each term in industry varies. Business terms are often defined over time, by
the common use or application of the term. Examines the historical definitions of both terms,
looks at current practitioner views of the terms, and proposes a hierarchy for the relationship
between logistics and supply chain management.

(2006) Gunnar Stefansson, (Division of Logistics and Transportation, Chalmers University


of Technology, Goteborg, Sweden) Collaborative logistics management and the role of
third-party service providers

A study of the logistics literature has been conducted together with several case studies.
The empirical evidence has been collected in Europe as well as in the USA. Different aspects of
collaboration between organizations in logistics setups have been studied where the services and
the activities have been analyzed to understand the characteristics of the role of third-party
service providers. CLM model can be applied when designing and negotiating third-party
services for specific logistics assignment

37
(1999) Remko I. van Hoek, (Professor at the University of Ghent, Belgium, and a Post-
Doctoral Researcher at the Erasmus University, Rotterdam, and the Netherlands.) From
reversed logistics to green supply chains
To lower the environmental damage of business we need to examine our “ecological
footprint”. We need to move forward with the business at the same time. In order to solve that
dilemma, a value-seeking and proactive approach to greening is proposed in the (general)
management literature. However, literature on the role of supply chain operations, mostly
published in the area of reversed logistics, has failed to develop grounded theory and frameworks
to support the application of such an approach. Furthermore, research is needed that goes beyond
the partial and fragmented contribution of reversed logistics. This research note looks at
challenges for research on green steps to take, and green supply chains to make in practice, as a
step up to lowering the ecologic footprint of supply chains
.

38
CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

Research methodology is a science. Research is the process of systematic indebt study or


a search of any particular topic, subject, and area of investigation, backed by the collection,
compilation, presentation and interpretation of relevant details of data. It is a method that can be
used to solve the research problems; it helps in studying how research can be done scientifically.
It provides various steps that can be adopted by the researcher in studying his research problems.
For this study the research design, data collection method and sampling plan were set forth in
accordance with the objectives but within the constraints.

3.2 RESEARCH PROCESS:-

RESEARCH PROBLEM

The research problem is to evaluate the effectiveness of the logistics system through
supply chain process and analysis it to offer suitable suggestions for improvement.

RESEARCH DESIGN

In order to do the study, descriptive research design was chosen.

Descriptive research includes survey and fact-finding enquires of different kinds. The
major purpose of descriptive research is descriptive of the state of affairs, as it exists at present.
The main characteristic of this method is that the researcher has no control over the variables the
researcher can only report what has happened or what is happening.

39
SOURCE DATA

The data collection for this study involves both primary data and secondary data.

PRIMARY DATA

The primary data was collected with the help of a well-constructed questionnaire.

The questionnaire was distributed among the employees directly and interviews were also
conducted in order to collect the data.

SECONDARY DATA

The secondary data was obtained through an interview with the staff at HYUNDAI
MOBIS, office records, the website of HYUNDAI MOBIS and various other related websites.

3.3 TOOLS FOR DATA COLLECTION

The primary data was collected using a structured questionnaire in which the questions
were determined before conducting the survey.

In this study, the following types questions were used:

 Personal details of the employees.

 Respondents view regarding the effectiveness of employees used at HYUNDAI MOBIS


logistics through questionnaire.

SAMPLING DESGIN

The sampling design is a definite plan for obtaining a sample from a given population,
the employees at HYUNDAI MOBIS logistics.

The research has used the simple random sampling method where each and every project
of employees has a chance of being selected.

40
SAMPLE SIZE

The population of the company was 100. Sample size taken was 50 employees. In this
study the researcher has collected data from 50 respondents using Questionnaire. The researcher
has chosen respondents from same place.

3.4 TOOLS FOR DATA ANALYSIS

The tools used for data analysis are:

Percentage Analysis:

One of the simplest methods of analysis is the percentage method. It is one of the
traditional statistical tools. Through the use of percentage, the data are reduced in the standard
form with the base equal to 100, which facilitates comparison.The formula used to compute
Percentage Analysis is,

No. of respondents
______________________ × 100
Total no. of respondents

41
Chi-square test:

The chi in chi-square is the Greek letter χ, pronounced as ki as in kite. Chi-square ( )


procedures measures the differences between observed (O) and expected (E) frequencies of
nominal variables, in which subjects are grouped in categories or cells.There are two basic types
of chi-square analysis, the Goodness of Fit Test, used with a single nominal variable, and Test of
Independence, used with to nominal variables.

It was introduced by Karl Pearson in 1890.

The following formula was used in the testing of hypothesis,

The expected frequency can be calculated as follows:

E = Row Total * Column Total

Grand Total

Degree of Freedom = (r-1)*(c-1), r-Row & C-Column

42
CHAPTER 4

ANALYSIS AND INTERPRETATION

TABLE 4.1TABLE SHOWING AGE OF THE RESPONDENTS

s.no age group no of respondents percentage of


respondents
1 20-25 yrs 12 24
2 26-30 yrs 18 36
3 31-35 yrs 15 30
4 36 and above 5 10
Total 50 100

CHART 4.1 CHART SHOWING AGE OF THE RESPONDENTS

40 36
35
30
30
24
25
20 18
15 no of respondents
15 12
10 percentage
10
5
5
0
20-25 yrs 26-30 yrs 31-35 yrs 36 and
above

INTERPRETATION

The researcher identified the age group of respondents through questionnaire it inferred majority
of the respondents from 100%, (24%) were 20-25 yrs, (36%) were 26-30 yrs, (30%) were 31-35
yrs, (10%) were 36 and above

43
TABLE 4.2 TABLE SHOWING GENDER OF THE RESPONDENTS

s.no particulars No of Percentage


respondents
1 male 50 100
2 Female 0 0
Total 50 100

CHART 4.2 CHART SHOWING GENDER OF THE RESPONDENTS

60
50 50
50

40

30 no of respondents

20 percentage

10
0 0
0
male female

INTERPRETATION

The researcher identified the gender of respondents through questionnaire it inferred


majority of the respondents from male (100%) and no female respondents

44
TABLE 4.3 TABLE SHOWING EXPERIENCES OF THE WORKERS

S.no particulars No of Percentage


respondents
1 Upto 5 yrs 12 24
2 5-10 yrs 30 60
3 Above 10 8 16
yrs
total 50 100

CHART4.3 CHART SHOWING EXPERIENCE OF THE WORKER

70
60
60

50

40
no of respondents
30 24 percentage
20 16

10

0
up to 5 yrs 5-10 yrs above 10 yrs

INTERPRETATION

The researcher identified the experience of workers respondents through questionnaire it


inferred majority of the respondents from 100%, (24%) were Upto 5 yrs, (60%) were 5-
10 yrs, (16%) were Above 10 yrs

45
TABLE 4.4 TABLE SHOWING EMPLOYEE INCOME LEVEL RESPONDENTS

s.no particulars No of respondents Percentage


1 <5000 0 0
2 5000>10,000 10 20
3 10,000>15,000 35 70
4 above 15,000 5 10
total 50 100

CHART4.4 CHART SHOWING EMPLOYEE INCOME LEVEL RESPONDENTS

80
70
70
60
50
no of
40 35 respondents
percentage
30
20
20
10 10
10 5
0 0
0
<5000 5000>10000 10000>15000 above 15000

INTERPRETATION

The researcher identified the income level of employees respondents through


questionnaire it inferred majority of the respondents from 100%, (0%) were <5000,
(20%) were 5000>10,000, (70%) were 10000>15000, (10%) were above 15000

46
TABLE 4.5 TABLE SHOWING MAIN ACTIVITIES AND SERVICES OF THE
COMPANY

s.no particulars No of respondents Percentage


1 Land freight, transportation 50 100
and logistics
2 Air freight, transportation 0 0
and logistics
3 Ocean freight, transportation 0 0
and logistics
total 50 100

CHART 4.5 CHART SHOWING MAIN ACTIVITIES AND SERVICES OF THE


COMPANY

Ocean freight, transportation and 0


logistics 0

0
Air freight, transportation and logistics percentage
0
no of respondents

100
Land freight, transportation and logistics
50

0 20 40 60 80 100 120

INTERPRETATION

The researcher identified the main activities and services of company respondents
through questionnaire it inferred majority of the respondents (100%) were Land freight,
transportation and logistics

47
TABLE 4.6 TABLE SHOWING RESPONDENTS FOR TECHNOLOGY CONTENT

s.no level No of Percentage


respondents
1 low 40 80
2 medium 10 20
3 high 0 0
total 50 100

CHART 4.6CHART SHOWING RESPONDENTS FOR TECHNOLOGY CONTENT

0
high

20
medium percentage
no of respondents

80
low

0 20 40 60 80 100

INTERPRETATION

The researcher identified the respondents for technology content through


questionnaire it inferred majority of the respondents from (100%), (80%) were low
and (20%) were medium in this level

48
TABLE 4.7 TABLE SHOWING USEFULNESS OF LABOR MANAGEMENT

s.no level No of Percentage


respondents
1 low 5 10
2 medium 45 90
3 high 0 0
total 50 100

CHART 4.7 CHART SHOWING USEFULNESS OF LABOR MANAGEMENT

100
90
90
80
70
60
50 45 no of rspondents

40 percentage

30
20
10
10 5
0 0
0
low medium high

INTERPRETATION

The researcher identified the respondents for labor management of usefulness


Through questionnaire it inferred majority of the respondents from (100%), (90%) were
medium and (10%) were low in warehouse management capabilities

49
TABLE 4.8 TABLESHOWING USEFULNESS OF DOCK SCHEDULE

s.no level No of Percentage


respondents
1 low 0 0
2 medium 25 50
3 high 25 50
total 50 100

CHART 4.8 CHART SHOWING USEFULNESS OF DOCK SCHEDULE

50
high
25

50
medium percentage
25
no of respondents

0
low
0

0 10 20 30 40 50 60

INTERPRETATION

The researcher identified the respondents fordock schedule of usefulness through


questionnaire it inferred majority of the respondents from (100%), (50%) were equal in
both medium and high in warehouse management capabilities

50
TABLE 4.9 TABLE SHOWINGCOMPANY WAREHOUSING PROCESS UPDATES

s.no opinion No of percentage


respondents
1 Always 0 0
2 Mostly 5 10
3 Rarely 45 90
4 never 0 0
total 50 100

CHART 4.9 CHART SHOWING WAREHOUSING PROCESS UPDATES

0
never
0

90
Rarely
45
percentage
10 no of respondents
Mostly
5

0
Always
0

0 20 40 60 80 100

INTERPRETATION

The researcher identified the respondents of company updates warehousing through


questionnaire it inferred majority of the respondents from (100%), (90%) were rarely,
(10%) were mostly in warehousing process

51
TABLE 4.10 TABLE SHOWING WORK WHICH EMPLOYEES FEEL RISK

s.no opinion No of percentage


respondents
1 Load/unload 12 24
materials
2 Take detail about 8 16
material
3 All the above 30 60
total 50 100

CHART 4.10 CHARTSHOWING WORK WHICH EMPLOYEES FEEL RISK

All the above 60


30

Load inventory in warehouse 0


0
percentage

Take detail about materials 16 no of the


8
respondent

Load/unload materials 24
12

0 10 20 30 40 50 60

INTERPRETATION

The researcher identified the respondents of company updates warehousing through


questionnaire it inferred majority of the respondents from (100%), (60%) were say All
the above, some of them say load/unload materials and materials detail

52
TABLE 4.11 TABLE SHOWING EMPLOYEES RISK IN WORK HOURS

s.no opinion No of percentage


respondents
1 Strongly agree 15 30
2 agree 35 70
3 disagree 0 0
total 50 100

CHART 4.11 CHART SHOWING EMPLOYEES RISK IN WORK HOURS

70
70
60
50 30
40 35
30 no of respondents
15
20 percentage
10 0
percentage
0 0
no of respondents
strongly
agree
agree disagree

INTERPRETATION

The researcher identified the respondents of employees risk in work hours through
questionnaire it inferred majority of the respondents from (100%), (30%) were strongly
agree, (70%) were agree

53
TABLE 4.12 TABLE SHOWINGLOADING THE MATERIAL IN WAREHOUSE

s.no opinion No of percentage


respondents
1 Inventory in horizontal 0 0
2 Inventory in vertical 0 0
3 Inventory in pallets 0 0
4 All the above 50 100
total 50 100

CHART 4.12 CHART SHOWING LOADING THE MATERIAL IN WAREHOUSE

100
All the above

0
Inventory in pallets

percentage

0 no of respondents
Inventory in vertical

0
Inventory in horizontal

0 20 40 60 80 100 120

INTERPRETATION

The researcher identified the respondents of loading the material in warehouse through
questionnaire it inferred majority of the respondents from (100%), (100%) were say All
the above

54
CHI-SQUARE CALCULATION

TABLE 4.13 SHOWING THAT THE RELATIONSHIP BETWEEN WAREHOUSING


PROCESS AND EXPERIENCE OF THE RESPONDENTS

EXPERIENCE WAREHOUSING PROCESS


Always Mostly Rarely Never TOTAL

Upto 5 years 0 2 10 0 12
5-10 years 0 1 29 0 30
Above 10 years 0 2 6 0 8

TOTAL 0 5 45 0 50

Null hypothesis (h0):

There is no significant relationship between warehousing process and experience of the


respondents

Alternative hypothesis (h1):

There is a significant relationship between warehousing process and experience of the


respondents

55
CALCULATION:

Observed Expected (O-E) (O-E)2 (O-E)2 /E


frequency(o) frequency
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
2 1.2 0.8 0.64 0.533
1 3 -2 4 1.333
2 0.8 1.2 1.44 1.800
10 10.8 -0.8 0.64 0.059
29 27 2 4 0.148
6 7.2 -1.2 1.44 0.200
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
TOTAL 4.073
TABLE VALUE

Degree of freedom =(no of row-1)x(no of column-1)

=(3-1)x(4-1)

=6

From the chi square table at 5% level of significance the value is 12.592, calculated value is
4.073.

INFERENCE

Calculated value is less than tabulated value (HO<H1) so HO is ACCEPTED

So we can conclude that there is no significant relationship between warehousing process and
experience of the respondents.

56
TABLE 4.14 TABLE SHOWING THAT THE RELATIONSHIP BETWEEN AGE AND
EMPLOYEES FEEL ABOUT RISK WORK

EMPLOYEES AGE
FEEL RISK 20-25 26-30 31-35 36 above TOTAL
WORK years years years

Load / Unload 3 1 6 2 12
materials
Take detail 3 2 3 0 8
about material
All the above 6 15 6 3 30

TOTAL 12 18 15 5 50

Null hypothesis (h0):

There is no significant relationship between age and employees feel about risk work

Alternative hypothesis (h1):

There is a significant relationship between age and employees feel about risk work

57
CALCULATION:

Observed Expected (O-E) (O-E)2 (O-E)2 /E


frequency(o) frequency
3 2.88 0.12 0.0144 0.005
1 4.32 -3.32 11.0224 2.55
6 3.60 2.40 5.7600 1.60
2 1.20 0.80 0.6400 0.53
3 1.92 1.08 1.1664 0.61
2 2.88 -0.88 0.7744 0.27
3 2.40 0.60 0.3600 0.15
0 0.80 -0.80 0.6400 0.80
6 7.20 -1.20 1.4400 0.20
15 10.80 4.20 17.64 1.63
6 9 -3 9 1
3 3 0 0 0
TOTAL 9.345
TABLE VALUE

Degree of freedom =(no of row-1)x(no of column-1)

=(3-1)x(4-1)

=6

From the chi square table at 5% level of significance the value is 12.592, calculated value is
9.345.

INFERENCE

Calculated value is less than tabulated value (HO<H1) so HO is ACCEPTED

So we can conclude that there is no significant relationship between age and employees feel
about risk work.

58
CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSIONS

5.1 FINDINGS

 It is inferred that 60% of respondents are male and 40% of respondents are female.
 It is inferred that 40% of respondents are above the age of 40years.
 It is inferred that 38% of respondents are in business between 6-7 years. And 27% have
business experience above 7 years.
 It is inferred that 44% of respondents are customers of HYUDAIMOBIS Logistics
between 4-5 years.
 It is inferred that 44% of respondents say that they are satisfied with services provided in
HYUDAIMOBIS Logistics. 26% of respondents say that they are highly satisfied.
 It is inferred that 50% of respondents say they need review meeting and 50% of
respondents say they don’t want any review meeting.
 It is inferred that 38% of respondents say that they are satisfied with the pricing patten of
HYUDAIMOBIS Logistics.
 It is inferred that 36% of respondents say that they are highly satisfied with the
communication of HYUDAIMOBIS Logistics. Also, 42% say that they are satisfied.
 It is inferred that 10% of respondents says material handlings, 10% of respondents says
quality transport, 10% of respondents says lower price and 20% of respondents says all
the above.
 It is inferred that 40% of respondents say that they are satisfied with the Line Haul
services of HYUDAIMOBIS Logistics, 37% of respondents say that they are highly
satisfied.
 It is inferred that 90% of respondents say that HYUNDAIMOBIS deliver the goods on
time.
 It is inferred that 48% of respondents say that they are not satisfied with the arrangement
of special vehicle during critical time in HYUNDAIMOBIS Logistics, 38% of
respondents say that they are highly not satisfied.

59
 It is inferred that 84% of respondents are satisfied with value-added services in
HYUDAIMOBIS Logistics.
 It is inferred that 74% of respondents say that there is confusion in the billing system of
HYUDAIMOBIS Logistics.
 It is inferred that 82% of respondents are satisfied with the handling pattern of
HYUDAIMOBIS Logistics.
 It is inferred that 44% of respondents say that HYUDAIMOBIS logistics has to improve
in billing system.
 It is inferred that 92% of respondents say that HYUDAIMOBIS Logistics provide quality
transport.
 It is inferred that 64% of respondents say that they receive proper response from
HYUDAIMOBIS Logistics.
 It is inferred that 54% of respondents are satisfied with the way HYUDAIMOBIS solves
the problem.
 There is no significant relation between service of HYUDAIMOBIS and strength of
HYUDAIMOBIS.
 There is no significant relation between the response from HYUDAIMOBIS and
communication of HYUDAIMOBIS .

60
5.2 SUGGESTIONS

The suggestions are drawn from the analysis and observations. Few suggestions are
given as under:

 The Genuine parts service of the company can be improved

 The company can take care of the billing system and can satisfy customers by providing
proper billing system.

 To improve the business to satisfy the more customers needs and clarify the needs and
some of the suggestion towards quality transports.

61
5.3 CONCLUSION

In this project the consumer satisfaction is very important thing here the respondents are say the
company service and workers dedication is nice and the quality of services is very nice. So the
customers are very satisfied with services of the Hyundai Mobis logistics and other needs of the
company and some customers say the suggestion to the company to improve the quality and new
techniques. .

62