"Efficient and Effective Logistics by way of On Time Delivery (OTD)- A study of Birla Uttam Cement"
SIP PROJECT REPORT PRESENTATION
“Efficient and Effective Logistics by Way of On Time
(A STUDY OF BIRLA UTTAM CEMENT)
INTRODUCTION TO THE PROJECT
The project was undertaken to find Logistics gap
throughout the whole distribution system,
To find the current status of the OTD service of the co.,
because it reflects brand image which is directly
concerned to company market share,
Where we can save logistics cost along with improved
Delivery at customer end,
What are the major causes which affect timely delivery
service of the company,
Possible solutions to make entire Logistics efficient &
QUESTIONNAIRE DESIGN & SURVEY RESEARCH
Three questionnaire was designed for each respondent.
The targeted population was Dealers (comes under
Jaipur 1 Depot), C&F Agent and responsible persons of
FILTER approach is used in designing questions i.e.,
general to specific.
A Survey was Descriptive Conclusive type.
The technique taken for sampling was Proportionate
T-test was conducted to test the difference of the mean of
Average sales of Population & selected sample size.
By observing this graph we can say that timely delivery is
affected by both works and fields problem, so we have to find
gaps of not delivering material on time at both stations.
MAJOR GAP FINDINGS
Problems at Works :
Shortage of fly Ash & other raw material,
Under load order size,
Seasonality during crop farming,
Poor demand by customer,
Less attention on Road shipment during Rake loading etc.
Problems at Field:
Labor unavailability or strike,
Centralized Distribution system,
Lacking in right number, type & mix of vehicles,
More Secondary Distance from Depot,
Govt. restrictions etc.
Regression Analysis was done to know the degree of correlation
between Secondary Distance (Depot to destination point) and
Secondary freight per bag.
As I observed that the only controllable factor, as distance was
concerned, was the secondary distance.
By reducing this distance we can serve customers timely and
ultimately better brand image in the mind of customer.
Actually the radius of dispatching material from depot was 200
kms., much more than competitors.
This higher distance causes more transportation cost and poor
timely delivery service at consumer end.
Secondary freight per bag was taken as dependent variable (Y)
while Secondary Distance was taken as independent variable (X).
C&F COST STRUCTURE COMPARISON
Rail Mode: Rake to Depot to Dealers movement Rail Mode: Rake to direct Dealer movement
Road Mode: Plant to Depot to Dealer Movement
TRANSPORTATION COST- DISPATCH STRATEGY
Current Delivery status
from each source and
associated logistics cost
Optimum way of delivering
material from each source to each
Monthly Saving = 90,000 p.m.
Annual saving = Rs. 10,80,000 p.a.
DECENTRALIZED DISTRIBUTION SYSTEM
Decentralized distribution system means, opening of more depot in the existed
geographical area and then supplying material to the radius of not more than 40-
50 km from a particular Depot. This mainly aims to reduce secondary distance
which has greatly influenced the total logistics cost per bag. By doing so material
can also be delivered at customer end fast, i.e., improved OTD.
Delivery from works via new presumed Depot (by road)
CONCLUSION & RECOMMENDATION
Mainly the company facing serious problem in delivering material on
time at consumer end, and hence market share compare to other
brand is not reasonable, ultimately causes low customer satisfaction.
Composite cost structure given to C&F Agent must be redesigned,
which can save up to 9,40,000 p.a. from Jaipur 1 Depot only (in case
Dispatch strategy must be improved to optimum level as suggested
by solving Transportation problem, which can save up to 10,80,000
OTD service can be improved up to 80% level by implementing
Decentralized Distribution System (DCS), which can save huge total
logistics cost of Rs. 85,72,800 p.a.
Totally about 10.5 Million (per annum) Logistics cost can be saved if
immediate actions will taken by top management surely.