 India's largest manufacturer and exporter of hand
knotted rugs
 Produces an exclusive product range of rugs, pillows
an...
JR
Foundation
JR
Incorporated
JR
Company
Bhoomika
Wools
Headquarter
Carding
&
Spinning
Weaving &
Finishing
Dyeing &
Opening
Bikaner
Jaipur
22 branch
offices spread
across 7 state...
1
• Customer (large retailer) placed order with JRI
2
• JRI communicated order to JRC.
3
• JRC forecasted and acquired raw...
4
•JRC completed pre-production logistics
•Cleaned, prepared and delivered wool to rug map
5
•Weaving process
6
•Post prod...
7
• Total JRC cost amounts to say ‘X’ $
8
• JRC wholesale price charged to JRI
9
• Shipping cost (Cost/ Sq.Ft= 0.25 $)
• P...
10
•JRI wholesale price
•Charged by JRI to customer
11
•Final retail price
•Charged by customer to end consumer
!!!
 Production units are in Rajasthan, Gujarat, Uttar
Pradesh, Bihar and Madhya Pradesh; with two new
states i.e. Maharashtr...
 Artisans are Familiar with traditional skills of carpet
weaving
 Traditional tools, looms and technology is easily avai...
 At present Jaipur rugs has businesses in more than 30
countries and touched a turnover of over 14 million $ in
2008-09.
...
 Gujarat-based private ports are closer to the industrial
regions of Rajasthan and Haryana
 In FY12, JNPT operated at ne...
External Connectivity
 Mundra SEZ has seamless connectivity through
National Highway (NH 8A Ext.) & State Highway (6 &
48...
 It’s a network of warehouses, proximity to Atlanta and
south eastern consumers, rail and interstate access
 It takes 5 ...
Source Destination Mode of transport Distance (KM) Time
Jaipur Rugs HQ,
Rajasthan
Jaipur ICD (Kanakpura) Road 10.2 1 Hours...
Source Destination Mode of transport Distance (KM) Time
Jaipur Rugs HQ Jaipur ICD (Kanakpura) Road 10.2 1 Hours
Jaipur ICD...
Distribution Network Optimization (International Route)- Jaipur Rugs
Distribution Network Optimization (International Route)- Jaipur Rugs
Distribution Network Optimization (International Route)- Jaipur Rugs
Distribution Network Optimization (International Route)- Jaipur Rugs
Distribution Network Optimization (International Route)- Jaipur Rugs
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Distribution Network Optimization (International Route)- Jaipur Rugs

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International Logistics Assignment
MBA 2012-14, Symbiosis Institute of Operations Management, Nashik

Submitted by:-

Nitish Singla
Omkar Sohoni
Plaban Roy
Rachit Gandhi
Sai Prasad Rode


Jaipur Rugs Company Private Ltd.

India's largest manufacturer and exporter of hand knotted rugs, known globally as a leader in hand-woven rugs category. The artistic designs, tantalizing color combinations and the comfort feel of its products make JAIPUR's rugs the first choice around the world. Over the years, JAIPUR has continued to carry forward the rich heritage of designs into homes in more than 40 countries around the world. They produce an exclusive product range of rugs, pillows and poufs in numerous fabrics with atheist colors and sophisticated textures. With diversity in its collection and categories JAIPUR facilitates its customers with explicit selection of traditional to transitional tranquil surfaces expressed in leveled piles and flat weaves.

JAIPUR has a network of around 40,000 skilled artisans in rural India. They have linked the grassroots to the most elite and luxurious icons of the world. The business model of JAIPUR has woven happiness and smile into the life of rural artisans by providing them sustainable livelihood. With its base of operations in Jaipur city, also known as Pink City of India, the brand takes the artistic craftsmanship of hand-woven rugs to North America through its unit in Atlanta, Georgia (USA) and representatives across USA and Canada.



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Distribution Network Optimization (International Route)- Jaipur Rugs

  1. 1.  India's largest manufacturer and exporter of hand knotted rugs  Produces an exclusive product range of rugs, pillows and poufs  Carry forward the rich heritage of India to more than 40 countries in the world  Has a network of around 40,000 skilled artisans in rural India
  2. 2. JR Foundation JR Incorporated JR Company Bhoomika Wools
  3. 3. Headquarter Carding & Spinning Weaving & Finishing Dyeing & Opening Bikaner Jaipur 22 branch offices spread across 7 states Shipping & Export Documentation Dept.
  4. 4. 1 • Customer (large retailer) placed order with JRI 2 • JRI communicated order to JRC. 3 • JRC forecasted and acquired raw materials • Includes wool bought in Bikaner or imported from another country by Bhoomika Wools
  5. 5. 4 •JRC completed pre-production logistics •Cleaned, prepared and delivered wool to rug map 5 •Weaving process 6 •Post production logistics •Finished carpet returned to JRC and packed for shipment
  6. 6. 7 • Total JRC cost amounts to say ‘X’ $ 8 • JRC wholesale price charged to JRI 9 • Shipping cost (Cost/ Sq.Ft= 0.25 $) • Paid by customer *** Shipping cost is assumed to be through vessel and includes all customs, fees, duties, and final transportation to customer. *** Shipments by air cost $ 1.5/ sq.ft. and are only for back-ordered products (approximately 15% of all shipments). *** JRI pays for the shipment in this case.
  7. 7. 10 •JRI wholesale price •Charged by JRI to customer 11 •Final retail price •Charged by customer to end consumer !!!
  8. 8.  Production units are in Rajasthan, Gujarat, Uttar Pradesh, Bihar and Madhya Pradesh; with two new states i.e. Maharashtra and Jharkhand being added up  Annual production of approximately 5 thousand million square feet of Rugs  Provide training and giving fair wages with no exploitation  Connecting artisans to global Market
  9. 9.  Artisans are Familiar with traditional skills of carpet weaving  Traditional tools, looms and technology is easily available  Most of the artisans are from the same caste and status  Products are made by the poorest among the poor (ST/SC/ BPL) which helps in creating the brand image  Artisans here are mostly mastered the art as they get it from their ancestors who were in the same business.  In addition to this, Grant Support to Jaipur Rugs Foundation is eligible for tax exemption under Section 35AC and Section 80 G of India's Income Tax Act.
  10. 10.  At present Jaipur rugs has businesses in more than 30 countries and touched a turnover of over 14 million $ in 2008-09.  USA is the major market of rugs where about 65% of the sales are done.  Followed by Turkey, Canada, Mexico, Italy, Germany, Australia, Ru ssia, Spain, Romania etc.
  11. 11.  Gujarat-based private ports are closer to the industrial regions of Rajasthan and Haryana  In FY12, JNPT operated at nearly 120% of its capacity, whereas Mundra operated at around 60 to 70% of their capacity  Kandla(Port in Gujarat), India’s largest port by volumes, a 30% hike in vessel-related charges is driving traffic elsewhere  The Adani Group, which employs more than 5,000 people in the Kutch district, expects to expand the port’s(Mundra) capacity to 200 million tonnes of cargo per year by 2020 from the current 78 million tonnes
  12. 12. External Connectivity  Mundra SEZ has seamless connectivity through National Highway (NH 8A Ext.) & State Highway (6 & 48) from Northern and Western parts of India Internal Connectivity  150 km of arterial and sub-arterial road network planned within the SEZ of which 70 km already completed  Roads designed as per IRC Standards Codes and Safety Norms
  13. 13.  It’s a network of warehouses, proximity to Atlanta and south eastern consumers, rail and interstate access  It takes 5 hours(535 Km) from Charleston Port to reach to Jaipur rugs, Atlanta office, whereas from savannah it takes only 4 hours(425 Km)
  14. 14. Source Destination Mode of transport Distance (KM) Time Jaipur Rugs HQ, Rajasthan Jaipur ICD (Kanakpura) Road 10.2 1 Hours Jaipur ICD JNPT Road 1210 17 Hours JNPT Damietta Sea 8744Nm 27 DaysDamietta New York Sea New York Charleston port Sea Charleston Port Jaipur Rugs, HQ, US Road 535 Km 5 Hours Complete Transit Time = 27 Days 23 Hours (Excluding Loading/unloading time or any other time lag)
  15. 15. Source Destination Mode of transport Distance (KM) Time Jaipur Rugs HQ Jaipur ICD (Kanakpura) Road 10.2 1 Hours Jaipur ICD Mundra Port Road 853 13 Hours 33 mins Mundra Damietta Sea - 24 DaysDamietta New York Sea New York Savannah Sea Savannah Jaipur Rugs, HQ, US Road 425 Km 4 Hours Complete Transit Time = 24 Days 18 hours 33 minutes (Excluding Loading/unloading time or any other time lag)

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