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IMPLEMENTATION OF SMART DELIVERY
MANAGEMENT SYSTEM FOR IMPROVING THE
EFFICIENCY OF SUPPLY CHAIN
Summer Internship Project Report submitted in partial fulfilment of the
requirements for the degree of
Master of Business Administration
By
RISHAL MATHEW
1628121
Under the Guidance of
DR. T A ASHOK KUMAR
Institute of Management
Christ University, Bangalore
JUNE 2017

iii
Declaration
I, Rishal Mathew, do hereby declare that the Summer Intern Project report entitled
“Implementation of smart delivery management system for improving the efficiency of supply
chain at ITC ltd” has been undertaken by me for the award of Master of Business
Administration. I have completed this study under the guidance of Dr T A. Ashok Kumar
I also declare that this Summer Internship Project report has not been submitted for the award
of any Degree, Diploma, Associate ship, Fellowship or any other title, in Christ University or
in any other university.
Place: Bengaluru
Date: Rishal Mathew
Register No: 1628121

Certificate
This is to certify that the Summer Intern Project report submitted by Mr. Rishal Mathew
on the title “Implementation of smart delivery management system for improving the efficiency
of supply chain at ITC ltd” is a record of summer intern project work done by his during the
academic year 2017-18 under my guidance and supervision in partial fulfilment of Master of
Business Administration.
Place: Bengaluru
Date: Dr.T A Ashok Kumar
Professor
Institute of Management
Christ University
Bengaluru

Acknowledgement
The satisfaction that accompanies the successful completion of any task would be
incomplete without mentioning the people who made it possible, whose constant guidance
and encouragement crowns all efforts with success.
First of all, I would like to thank the Almighty for instilling in me the strength and power
required to fulfill the work extended to May 15. Also, I want to thank my family and friends
for supporting me from the beginning to the end.
I would like to acknowledge the efforts Dr. Sunithi Phadke, Dean, Prof. Sudhindra S,
Associate Dean, Prof. Shrikanth Rao S, Head of Department and Prof. R.A.Dakshina
Murthy, Head of Lean Operations & Systems Specialization, Institute of Management for
their valuable guidance and encouragement received during my project study which
enhanced my knowledge.
My deep indebtedness goes to Mr Mrutyunjaya Sandhibigraha(Assistant Manager) and Mr.
Mohan Kumar(Area Manager),ITC Ltd for their valuable guidance throughout the project.
I would like to thank ITC Ltd, Bengaluru for providing me with this opportunity to work
in their supply chain department.
I thank Dr. T A Ashok Kumar, for his support and guidance during the course of my
summer internship. I remember him with much gratitude for his patience and motivation,
without which I could not have submitted this work.
Rishal Mathew
1628121

Placeholder for black and white photocopy of the certificate issued by the SIP
organization

Executive Summary
The project is being undertaken at ITC Ltd, an Indian conglomerate known for its brand presence
and wide range of diversified products.
The project report is based on the measures taken at the distribution points of ITC Ltd, Bengaluru
to improve the efficiency of delivery planning. The project is aiming at the implementation of a
smart delivery management system at one of the distribution points of ITC Ltd. There are certain
issues pertaining in the manual delivery planning at the distribution points of ITC Ltd. Some of
this issue are High turnaround time of trucks, inefficient storage strategy in the warehouse,
underutilization of vehicles, delivery boy attrition and a time-consuming picking and loading
strategy. Rectification of this issues is very important to achieve on-time delivery and hence, better
customer relations.
The root causes of this issues are being identified and analyzed in this project. A comparison
between the proposed smart delivery system and the manual system is also being conducted. The
analysis and study are being conducted using various tools such as Failure mode effect analysis,
Forced field analysis, Time and motion study etc. The workflow of the smart system is being
studied. A cost benefit analysis after the implementation of the new system is also being done in
this project.
The project also opens the opportunity to simplify the further implementation of this smart delivery
management system in other WDs in Bengaluru.

TABLE OF CONTENTS
1. INTRODUCTION .............................................................................................................1
1.1. Distribution Channels .................................................................................................1
1.1.1 Types of Distribution Channel..............................................................................1
1.1.2. Need for Distribution Channel.............................................................................5
1.2. Literature Review…………………………………………………………………...6
2. INDUSTRY ANALYSIS ................................................................................................15
2.1. Common FMCG Products ........................................................................................50
3. COMPANY PROFILE ....................................................................................................54
3.1.1. A Modest Beginning..........................................................................................19
3.1.2. Vision & Mission...............................................................................................20
3.1.3. Core Values........................................................................................................56
3.1.4. Corporate Strategies...........................................................................................57
3.1.5. SWOT ANALYSIS ...........................................................................................58
4. OBJECTIVES..............................................................................................................23
5. PROJECT METHODOLOGY.........................................................................................63
5.1 STATEMENT OF THE PROBLEM ........................................................................63
5.2 OBJECTIVES OF THE PROJECT ...........................................................................63
5.3. TOOLS EMPLOYED ..............................................................................................63
5.4. SOURCES OF DATA..............................................................................................64
5.5. LIMITATIONS.........................................................................................................27
6. PROCESS STUDY......................................................................................................28
6.1. THE PROCESS WORKFLOW ............................................................................28

6.2. DATA ANALYSIS...............................................................................................34
7. FINDINGS & RECOMMENDATIONS.....................................................................45
7.1. FINDINGS ............................................................................................................45
7.2. CONCLUSION.....................................................................................................46
7.3. RECOMMENDATIONS ......................................................................................46
8. LEARNINGS...............................................................................................................48
REFERENCES......................................................................................................................49

TABLE OF CONTENTS
1. INTRODUCTION .............................................................................................................1
1.1. Distribution Channels .................................................................................................1
1.1.1 Types of Distribution Channel..............................................................................1
1.1.2. Need for Distribution Channel.............................................................................6
1.2. Literature Review…………………………………………………………………...7
2. INDUSTRY ANALYSIS ................................................................................................16
2.1 FMCG Industry Economy…………………………………………………………...16
2.2. Common FMCG Products ........................................................................................50
3. COMPANY PROFILE ....................................................................................................54
3.1 Company History and Evolution…………………………………………………..20
3.1.1. A Modest Beginning..........................................................................................20
3.1.2. Vision & Mission...............................................................................................21
3.1.3. Core Values........................................................................................................56
3.1.4. Corporate Strategies...........................................................................................57
3.1.5. SWOT ANALYSIS ...........................................................................................58
4. OBJECTIVES..............................................................................................................24
5. PROJECT METHODOLOGY.........................................................................................63
5.1 STATEMENT OF THE PROBLEM ........................................................................63
5.2 OBJECTIVES OF THE PROJECT ...........................................................................63
5.3. TOOLS EMPLOYED ..............................................................................................63
5.4. SOURCES OF DATA..............................................................................................64
5.5. LIMITATIONS.........................................................................................................28
6. PROCESS STUDY......................................................................................................29

6.1. THE PROCESS WORKFLOW ............................................................................29
6.2. DATA ANALYSIS...............................................................................................35
7. FINDINGS & RECOMMENDATIONS.....................................................................45
7.1. FINDINGS ............................................................................................................45
7.2. CONCLUSION.....................................................................................................46
7.3. RECOMMENDATIONS ......................................................................................47
8. LEARNINGS...............................................................................................................48
REFERENCES.....................................................................................................................49

Table
No. LIST OF FIGURES
Page
No.
1.1 Types of Distribution Channel 3
2.1 Common FMCG Products 16
3.2 Product Mix of ITC ltd 22
6.1 Process Work Flow 28
6.2 Beats in Zoblite 29
6.3 Shipment List 31
6.4 Shipment Generation 32
6.5 Picking & Loading 33
6.6 e- Trip Sheets 33
6.7 Damaged Item 34
6.8 Bulk & Break Zone 35
6.9 Fish Bone Diagram 38
6.10 Wrong Geo Tag 42
6.11 Beat wise wrong outlets 43
6.12 Crate Packing 43
6.13 New Kitting Shift 44

Fig
No. LIST OF TABLES
Page
No.
3.1 Milestones 19
3.2 SWOT Analysis 22
6.1 Types of Vehicles 30
6.2 CFC dispatch List 34
6.3 Pre-Bulk& Break Scenario for loose packets 36
6.4 Pre-Bulk & Break Scenario for CFC’s 36
6.5 For Bulk CFC’s 37
6.6 For Break loose packets 37
6.7 Time & Motion Results 37
6.8 Force Field Analysis 38
6.9 FMEA 40
6.10 Risk Severity Matrix 41
7.1 Financial Benefit Analysis 46

Table
No. LIST OF FIGURES
Page
No.
1.1 Types of Distribution Channel 3
2.1 Common FMCG Products 17
3.2 Product Mix of ITC ltd 23
6.1 Process Work Flow 29
6.2 Beats in Zoblite 30
6.3 Shipment List 32
6.4 Shipment Generation 33
6.5 Picking & Loading 34
6.6 e- Trip Sheets 34
6.7 Damaged Item 35
6.8 Bulk & Break Zone 36
6.9 Fish Bone Diagram 39
6.10 Wrong Geo Tag 43
6.11 Beat wise wrong outlets 43
6.12 Outlet wise Crate 44
6.13 New Kitting Shift 44

Fig
No. LIST OF TABLES
Page
No.
3.1 Milestones 21
3.2 SWOT Analysis 23
6.1 Types of Vehicles 31
6.2 CFC dispatch List 35
6.3 Pre-Bulk& Break Scenario for loose packets 37
6.4 Pre-Bulk & Break Scenario for CFC’s 37
6.5 For Bulk CFC’s 37
6.6 For Break loose packets 38
6.7 Time & Motion Results 38
6.8 Force Field Analysis 38
6.9 FMEA 41
6.10 Risk severity Matrix 42
7.1 Financial Benefit Analysis 46

CHAPTER 4
OBJECTIVES OF THE STUDY

CHAPTER 5
PROJECT/PROCESS DESIGN AND
METHODOLOGY

CHAPTER 6
DATA ANALYSIS/PROCESS STUDY

CHAPTER 7
FINDINGS &
RECOMMENDATIONS

1. INTRODUCTION
This summer internship was undertaken at TCS and sons, WD of ITC ltd in Bengaluru branch.
The FMCG turnover is 6 crores. The project undertaken at the distribution point to improve the
efficiency of delivery management. The project consisted of study of the legacy system and
implementing a smart delivery management system at TCS and Sons. An analysis was conducted
to compare the manual delivery planning and the proposed system. Certain factors that led to late
delivery and increasing D&D were figured out and rectified. Various tools such as FMEA, Fish
Bone Diagram were used in order to identify the defects and rectify them.
1.1. Distribution Channels
Distribution plays a key role within the marketing mix, and the key to success is its successful
integration within the mix, ensuring that customers get their products at the right place and at the
right time. If the product cannot reach its chosen destination at the appropriate time, then it can
erode competitive advantage and customer retention. For any organization to be effective, there
should be effective distribution management process to convey finished products from the
manufacturer to the final consumer. This is because, without distribution, the best product will not
be delivered and the marketing mix will fail and break down. As a result of this, firms are
increasingly adopting supply chain management to reduce cost, increase market share and build
solid customer relations.
Many leading companies have implemented technology initiatives in their distribution channels.
These include provision of computer systems and billing software to CFAs and Stockists’ and
connecting CFAs’ and stockists’ computers with their manufacturing databases, providing
handheld devices to stockiest salespersons for accurate billing, using GPS enabled transport
vehicles and so on.
1.1.1 Types of Distribution Channel
A channel of distribution or trade channel is the path or route along which goods move from
producers to ultimate consumers or industrial users. In other words, it is the distribution network
through which a producer puts his product in the hands of actual users. The channel of distribution

includes the original producer, the final buyer and any middlemen-either wholesaler or retailer.
The term middleman refers to any institution or individual in the channel which either acquires
title to the goods or negotiates or sells in the capacity of an agent or broker. But facilitating
agencies that perform or assist in marketing function are not included as middlemen in the channel
of distribution.
This is because they neither acquire title to the goods nor negotiate purchase or sale. Such
facilitating agencies include banks, railways, roadways, warehouses, insurance companies,
advertising agencies, etc.
The number of middlemen may vary. If there is direct sale by the produce to the consumers then
there is no middleman. But that is very rare. The producer may sell goods to retailer who may then
sell the same to consumers. The producer may sell goods to wholesalers who may in turn sell to
retailers and the retailer may sell to consumers. The fourth alternative channel of distribution is
when any agent/dealer intervenes between the producer and retailers and acts as a middleman. The
agent is appointed by the producer for the sale of goods to the retailers. Another alternative channel
is there when producer's agent sells goods to wholesalers who sell to retailers. Agent/dealer is an
independent person/firm buying
goods and selling them to retailers. Agent/dealer may also sell to wholesalers who may then sell
to retailers and goods are thus made available to consumers. In the channel of distribution there
may be more than one agent/dealer and wholesaler.
A brief explanation of different channels of distribution is given below:
• Manufacturer to Customer: This is also known as direct selling because no middlemen are
involved. A producer may sell directly through his own retail stores, for example, Bata.
This is the simplest and the shortest channel. It is fast and economical. Small producers
and producers of perishable commodities also sell directly to the local consumers.
• Manufacturer –Retailer- Customer: This is one stage distribution channel having one
middleman, i.e., retailer. In this channel, the producer sells to big retailers like departmental
stores and chain stores who in turn sell to customer. The retailers purchase in large
quantities from the producer and perform certain marketing activities in order to sell the
product to the ultimate consumers.

• Manufacturer-Wholesaler-Retailer-Customer: This is the traditional channel of
distribution. This channel is most suitable for the products with widely scattered market. It
is used in the distribution of consumer products like groceries, drugs, cosmetics, etc. It is
quite suitable for small scale producers whose product line is narrow and who require the
expert services and promotional support of wholesalers.
Figure 1 1.1. Types of Distribution Channel
While selecting a distribution channel, the entrepreneur should compare the costs, sales volume
and profits expected from alternative channels of distribution. In order to select the right channel
for distributing his product, a small-scale manufacturer should keep in mind the following
considerations:
• Product:
Perishable goods need speedy movement and shorter route of distribution. For durable and
standardized goods, longer and diversified channel may be necessary. Whereas, for custom made
product, direct distribution to consumer or industrial user may be desirable.
Also, for technical product requiring specialized selling and serving talent, we have the shortest
channel. Products of high unit value are sold directly by travelling sales force and not through
middlemen.
• Market:
(a) For consumer market, retailer is essential whereas in business market we can eliminate
retailing.
(b) For large market size, we have many channels, whereas, for small market size direct selling
may be profitable.

(c) For highly concentrated market, direct selling is preferred whereas for widely scattered and
diffused markets, we have many channels of distribution.
(d) Size and average frequency of customer’s orders also influence the channel decision. In the
sale of food products, we need both wholesaler and retailer.
Customer and dealer analysis will provide information on the number, type, location, buying habits
of consumers and dealers in this case can also influence the choice of channels. For example, desire
for credit, demand for personal service, amount and time and efforts a customer is willing to spend-
are all important factors in channels choice.
• Middlemen:
(a) Middlemen who can provide wanted marketing services will be given first preference.
(b) The middlemen who can offer maximum co-operation in promotional services are also
preferred.
(c) The channel generating the largest sales volume at lower unit cost is given top priority.
• Company:
(a) The company’s size determines the size of the market, the size of its larger accounts and its
ability to set middlemen’s co-operation. A large company may have shorter channel.
(b) The company’s product-mix influences the pattern of channels. The broader the product- line,
the shorter will be the channel.
If the product-mix has greater specialization, the company can favor selective or exclusive
dealership.
(c) A company with substantial financial resources may not rely on middlemen and can afford to
reduce the levels of distribution. A financially weak company has to depend on middlemen.
(d) New companies rely heavily on middlemen due to lack of experience.
(e) A company desiring to exercise greater control over channel will prefer a shorter channel as it
will facilitate better co-ordination, communication and control.
(f) Heavy advertising and sale promotion can motivate middlemen in the promotional campaign.
In such cases, a longer chain of distribution is profitable.
Thus, quantity and quality of marketing services provided by the company can influence the
channel choice directly.

• Marketing Environment:
During recession or depression, shorter and cheaper channel is preferred. During prosperity, we
have a wider choice of channel alternatives. The distribution of perishable goods even in distant
markets becomes a reality due to cold storage facilities in transport and warehousing. Hence, this
leads to expanded role of intermediaries in the distribution of perishable goods.
• Competitors:
Marketers closely watch the channels used by rivals. Many a time, similar channels may be
desirables to bring about distribution of a company’s products. Sometimes, marketers deliberately
avoid channels used by competitors. For example, company may by-pass retail store channel (used
by rivals) and adopt door-to-door sales (where there is no competition).
• Customer Characteristics:
This refers to geographical distribution, frequency of purchase, average quantity of purchase and
numbers of prospective customers.
• Channel Compensation:
This involves cost-benefit analysis. Major elements of distribution cost apart from channel
compensation are transportation, warehousing, storage insurance, material handling distribution
personnel’s compensation and interest on inventory carried at different selling points. Distribution
Cost Analysis is a fast growing and perhaps the most rewarding area in marketing cost analysis
and control.
1.1.2. Need for Distribution Channel
Having a distribution channel breaks the whole buying and selling process and all its related
negotiations into manageable tasks, each performed by companies that specialize in certain skills.
Using an import wholesaler, for example, can be handy because they know the laws and customs
of the suppliers' nations; and they generally offer their own lines of credit so the retailer won't have
to deal with currency exchange or negotiate payment terms with a bank in another country.
Another advantage of the distribution channel is its ability to even out the flows of a supply chain.
This comes from the ability of some channel members to store excess goods until they are needed,
and to stockpile goods in anticipation of seasonal sales peaks. Depending on how close their
relationships, channel members may also work together to purchase goods or services in greater
quantity at discounts, passing the savings on to customers.

The complexity of the modern globalized business environment has made SCM an important
aspect of success for modern firms and organizations. The individual organizational characteristics
of firms and organizations along with the different nature of each product/service rules out the
application of universal model and strategy for SCM. Each firm must plan and organize her supply
chain according to her special needs and characteristics. Modern, global agro-food networks
require multi-level supply chain management (SCM) approaches due to the increased flows of
goods and information both upstream and downstream in the value chain and vice versa. There are
however some elements that are common to successful SCM for all industries. The most crucial
factor for the management of supply chain is commitment at the highest corporate levels. Firms
must develop their supply chain in a balanced way drawing attentions to all stages of the supply
chain. The ability of forecasting future demand is equally important and helps improving the level
of customer service and cutting down costs. Finally, thorough cost analysis with the use of Activity
Based Cost analysis and other methodologies are central to the successful operation of the firm
and her competitive advantage. Investments in technology and information systems help in
achieving all the aforementioned directions for planning and implementing supply chains in all
industries.
1.2 Literature Review
According to Ramaa.A, et al(2012)1, warehousing function is very difficult as it acts a s a node
linking the material flows between the supplier and customer. Today’s competitive market
environment companies are continuously forced to improve their warehousing operations. Many
companies have also customized their value proposition to increase their customer service levels,
which has led to changes on the role of warehouses. This paper highlights the findings of the study
carried out to evaluate performance levels and enhance productivity of the manual warehouses by
developing WMS framework and cost benefit analysis. Implementation of Warehouse
Management System will necessarily provide an increase in accuracy, reduction in labor costs, if
the labor employed to maintain the system is less than the labor saved on the warehouse floor and
greater ability to service the customer by reducing cycle times. MS will not only lead to inventory
reduction but also in greater storage capacity. An increase in accuracy and efficiency of the
receiving process might lead to reduction in level of safety stock required. But the consequence of
this reduction will hardly be visible to the overall inventory levels. MS might just not affect the

factors controlling inventory levels. MS is instrumental in more efficient and organizes that leads
to increased storage capacity.
According to Poorya Frahani (2015), Key focus points in automotive OEMs and suppliers include
revising and improving processes and IT systems to deal with globalization and the respective
complexity of supply chains. The evaluation also allows generating a deeper understanding of the
sectors trends and maturity on a wider scale. Major developments are observed in getting closer to
the customers as the demand source to improve accuracy of demand plans. SCM in the digitalized
economy- motivated and enabled by a tremendous technology shift and upcoming innovations.
Key challenges and trends regarding current and future SCM tasks across different industry groups
show the need for “Digital SCM Vision”. Interviews showed that investing in and implementing
emerging technologies will create a sustained competitive advantage for companies through
enhancing access to information, reducing costs, improving product quality, as well as
responsiveness and collaboration abilities. Every industry has its own “Digital SCM Vision”
based on industry- specific use cases of innovative digital technologies and therefore needs a
separate roadmap to improve the digital maturity of its SCM tasks.
According to Madlberger(2006), Electronic retailer’s last mile logistics service whereas the
customers flexibility in terms and location obviously doesnot influence their requirements for
logistical services. The strategic importance of logistics and supply chain management is
undoubted in academia and Practice. Last mile logistics in e-commerce consist of the following
measures delivery time , flexibility of delivery , quality of deliver and information. the product
category has a strong impact on consumers’ expectations concerning last mile logistics. According
to the survey, the groceries business is faced with most challenges in last mile logistics. This is not
only due to the specific physical product attributes but also to the requirements from the
consumers’ point of view. Consumers expect groceries to be delivered home quickly. But
consumers are also aware of the high complexity of last mile logistics in the groceries industry.
the discussed study has some limitations. One issue are the sample size and the mentioned age and
employment biases in the sample. Furthermore, the study should include more conditions and also
more strategic decisions that might be relevant. As a consequence, the average Austrian online
shopper might assess this service to a higher extent than revealed in this study. On the other hand,

as people younger than 20 years are underrepresented, this might lead to a lower importance of
convenience advantage as young people are usually more flexible and mobile.
According to P.J Byrne(2013),This paper shows the influence of environmental performance as a
decision criteria in the consumption of products/ services for consumers is growing. It’s in the
logistic operations where most organizations can implement green supply chain strategies. The
results show that although the majority of these organizations are willing to some extent, this is
not universal, with a significant proportion of organizations believing that there are hidden costs
and risks associated with the implementation of sustainable logistics. To be truly sustainable a
supply chain would at worst, do no net harm to natural or social systems while still producing a
profit over an extended period of time. No such supply chain is known to exist today. In fact, the
development of a “truly” sustainable supply chain may prove unachievable in the short to medium
term leading to organizations competing on being “more sustainable” than their competitors. This
paper extends the existing body of literature in the area of logistics operations and charts its modern
evolution to include the sustainable dimension. The paper extends this literature in its presentation
of an exploratory study that investigates the attitudes to and knowledge of sustainable logistics,
particularly among Irish organizations. The study identifies significant variation in willingness
among logistic buying organizations to implement practices to address the environmental impact.
In addition, a significant proportion believes that there are risks and hidden costs which can be
attributed to the implementation of sustainable logistics, thus making them wary and/or reluctant
to engage in such practices.
According to AashwiniKumar Devari(2014), Last mile delivery is of key importance in today’s
competitive environment as it forms on of the major cost in the supply chain. Most major retailers
and organizations working towards providing speedy and quality delivery of products are
analyzing alternatives to reduce last mile product delivery cost. Crowd logistics is one of the
subjects of crucial importance and is being constantly researched upon to improve delivery times
and reduce costs. This thesis investigates the benefits of implementing crowdsourcing a part of
crowd logistics by using social network for last mile delivery. The logistic regression model
presented makes certain assumptions to calculate the feasibility of delivering a product using social
network. While calculating the probabilities of delivering a product this model assumes that a

person would do so every time, which may not be the case. In real-world scenario further research
has to be carried out to determine the number of times a person would help assist in the delivery
which can help us better understand the cost benefits. In this thesis we have conducted a sensitivity
analysis to get a broad understanding of the effects. However, a more detailed study needs to be
conducted in this area. The possibility of providing store credits or rewards to people assisting in
delivery needs to be studied in more detail. This could positively impact people’s willingness to
perform a delivery. Presently we have considered only single-hop delivery, that is only one person
is involved in performing the last mile delivery. The possibility of multi-hop delivery can be
analyzed wherein the shipment can pass through multiple acquaintances to reach the customer.
This could increase the probability of shipment delivery.
According to L.A Tavasszy(2015), This research will show how to use historical delivery data to
predict future delivery results by using address intelligence. A specific case of a parcel delivery
company is worked out to show the opportunities and possibilities of delivery data to improve their
performance. The research is carried out for DHL; this means that some results are just partly
shown due to confidentiality reasons. It is possible to increase the delivery efficiency of parcel
delivery services by applying changes in the last mile: changes in location, time, route and
behaviour. It clearly appears that the delivery efficiency is closely related to (demographic)
characteristics of an area by the application of multiple linear regression techniques to develop
address intelligence out of the big data with deliveries. Boyer et al. addressed as future research to
more exact mapping of the relationship between efficiency and customer density. In their paper,
they show the decreasing miles per customer as the consumer density is increasing. Therefore the
related delivery costs are also decreasing with increasing customer density. Based on the address
intelligence new concepts can be derived for area-specific solutions to increase the first time
delivery. Our case research has shown that contact with the customer seems to be the most
promising concept which could be adapted by parcel delivery services and web-shops to remain
efficient.
According to Alessandra Marasco(2007), In the recent past, third-party logistics (TPL), also
referred to as logistics outsourcing has received considerable attention from logistics scholars,
resulting in a great research and writing in this field. The interest of researchers in TPL continue

as several recent studies suggest that a steadily increasing number of companies across industry
sectors use third-party providers for the management of all or part of their logistics operations.
This paper has attempted to provide a picture of the body of research produced in the field of TPL
during the period 1989–2006. Only academic journal papers were included in the review, as they
are generally considered to be the highest level of research for acquiring information and
disseminating new findings. Other relevant knowledge concerning this topic might also be found
in conference proceedings papers, master’s theses, doctoral dissertations and textbooks. Some
relevant articles published within the specified time frame may have been missed during the
literature search. This may also be due to the fact that, although the number was small and
negligible. A conscientious effort has been made to identify the primary topic and research
approach of each article, the review and classification of the literature are to a certain extent
dependent on subjective estimation. Bonding, has been identified as an important concept for
examining and explaining successful buyer–seller relationships. Stability and overall performance
of TPL arrangements are likely to be severely affected by the multiplicity of economic, technical
and social bonds that develop during the relationship between the parties.
According to Gabriell hjalt(2016), how a company, selling incontinence care
products through an online sales channel in Sweden, can affect the cost of last mile deliveries,
before and during the purchasing process of logistics services. In order to arrive at the final
purpose, the digital market for incontinence care products in Sweden was estimated. Built upon
that estimation were the propositions for how costs can be reduced before and during the
purchasing process. In order to internally reduce cost, the company should aim to be more
transparent in their pricing and start creating further incentives for consumers to choose collection
points. Equivalently, subscriptions could solve problems such as fluctuations, capacity planning
and routing, well in advance. It would also simplify collaboration with other companies delivering
to the same target group, with the same frequency. Collaboration for warehousing and
transportation could be beneficial if finding the right partner and could also be used in the purchase
of logistics services as bargain power. Important to remember is also that evaluation of logistics
service provider should be made regularly, even though the channel stands for a small share of
total orders and even though the channel might not have the primary purpose of being the most

profitable channel on its own. The evaluations should aim at creating solutions that go along with
the long term goals of the company.
According to Guido Perboli(2017), The paper is introduced in this context with three purposes.
First, it defines the main actors involved in the urban parcel delivery, analyses their business
models and the interaction between them. Second, it investigates the integration of traditional and
green logistics, from both business and operational perspectives, in order to identify synergies,
conflicts, operational and economic consequences of the green vehicles adoption. Third, it
introduces a simulation-optimization decision support tool capable to assess mixed-fleet policies
for the management of parcel delivery in urban areas. the switch to low environmental vehicles
determinate a loss of efficiency for Traditional subcontractor. For this reason, to maintain an
equilibrium level in the system, it is important that this inefficiency is contained and balanced by
the increase of the service quality using green vehicles, by a re-definition of the contractual
schemes with the Traditional and Green subcontractors or the integration of the green fleet in the
International Courier company. A continuous process for the optimization of the activities through
the implementation of a DSS is needed, in order to achieve reasonable levels of efficiency.
According to this emerging bi-vehicular model, a future direction of this work is to analyze how
the dynamics in the urban freight transportation systems change introducing other vehicles with
low environmental impact as the totally electric and the hybrid ones.
According to Merjin Bouwman(2017), It has been found that customers can be involved in seven
different roles. Most of these roles can have an influence on last-mile performance, while it was
also shown they can offer opportunities to identify and target particularly inefficient elements of
last-mile delivery. This study took a both an organization-centred and customer-centred view of
the last-mile problem and thus also investigated the implications of customer involvement on the
satisfaction of the customer. It was indicated that by involving customers, satisfaction can be
increased, while customers themselves can also feel more in control over the process. It also
considered efficiency of the last-mile process, in which it was found that most customer roles can
lead to enhanced efficiency. The involvement of customers has not been proven to cause a negative
effect on the level of perceived control by the parties involved by the e-retailers, which opens

possibilities for a higher level of customer involvement. However, involvement of customers may
require a different kind of control, which is more relation-based.
According to Choong-yeun Lion & Caren S.E Loo(2009)3, animated ARENA simulation models
can be developed to study the loading and unloading systems in a warehouse. The aim of the study
is to find a strategy that will optimize the residence time of any lorry in the warehouse. The
warehouses of interest are those that deal with already packed as well as products that need sealing.
The processed in the loading system are checking, unloading, arranging ,sealing and storage of
products; whereas for the loading system, the processes are processing the delivery order, picking
and sealing, loading and checking the load on the lorry. A simulation model of the existing system
was developed and run to further understand the state of operations. Utilization of workers and
waiting times at the various processes were discussed and analyzed to identify the bottle neck in
the system. It was identified that the inter-arrival time of customer’s’ lorries; waiting time at the
order picking, sealing and loading process; and the number of forklift are contributing factors
towards the performance of the loading system. The unloading system, which uses the company
owned lorry has no bottleneck because the lorry is well scheduled. Four improvement models were
developed and compared.It was found that, when other factors are relatively the same, by adding
a forklift and a driver,the chosen model has not only overcome the overtime problem but also
reduces the waiting time of the customers by almost two hours.
According to Md. Ashlyzan Razik et al(2015)5,it is important to apply integrated quality function
deployment(QFD) for dry bulk terminal improvement from the perspectives of the customers.
Firstly, the main issue of the QFD problem was made which are ‘what’ the customer required and
‘how’ to implement the problem to solutions. This two major of components to be emphasized on
the house of quality matrices. In this research, the systematic procedures using inferential statistics
which are factor analysis and correlation are applied in QFD method. Factor analysis is used for
identifying the best group and reduce unused items. Correlation spearman is used for seeing the
relationship and strengthen each factor. The results in this study show four best group or criteria’s
were identified which are loading efficiency, infrastructure improvement, time performance and
dry bulk operation improvement. The proposed strategy from this study can be used for the port

management to identify solution in dry bulk terminal. Disruptions at any stage of a supply chain
system can cause mammoth operational and financial losses to a firm. When there is a disruption
with a supply chain system, it is highly desired that the system quickly recover. The ability of
recovery is, in short, called resilience. This paper proposes a new measure of the resilience of a
supply chain system based on the concept of survival and, subsequently, a survival model [Cox
proportional hazard (Cox-PH) model]. The survival model represents a time interval or period
from the time the system failed to function to the time the system gets back with its function (i.e.,
recovery). The input to the model is, thus, a failure event; the output from the model is the recovery
time. This model has been implemented. There is a case study to illustrate how the model is used
to give a quantitative measurement of resilience, in terms of recovery time.
According to Roel Gevaers (2009), it can be stated that when optimizing the last part of a supply
chain, one has to focus on the following characteristics: service levels, security & type of delivery,
geographical area & market penetration, fleet & technology and environment. If it would be
possible to introduce broader time windows than nowadays, this
would be an adaptation of the service level characteristic and also an adaptation of the
environmental characteristic. This due to the fact that driving during off-peak moments produces
on average less carbon emissions as the result of the lower level of congestion at these moments.
The fleet & technology characteristic is also taken into account using silent technologies. This list
of characteristics does not guarantee success when implementing innovative last-mile concepts,
but it appeared out of the existing academic literature that the aforementioned characteristics do
increase the possible success of implementing a new concept, when they have been taken into
account. In other words, the chance to obtain increased performance and competitiveness in the
last mile chain, is higher by adapting these characteristics in new concepts.
According to Prof Zdenko Segetlija(2012), Distribution channels, i.e. marketing channels are
being developed in contemporary conditions of concentration, internationalization and
globalization processes. New structures of vertical marketing systems are thus created. The
expansion of large retail chains from developed countries into economically underdeveloped
countries is very dynamic at the moment. The process is supported by the explosive development
of IT, as well as by certain trends on the international geopolitical scene. As large international

retail chains penetrate certain markets not only in the functional but also in the spatial sense, the
development of domestic retail is being limited, which puts the domestic production under threat
as well. Of course, the development of distribution channels is conductive to production
development; however, management is being transferred to large international business systems.
According to Zhuhe Huang(2015), Last mile delivery as the only phrase that has direct contact
with customers in e-commerce, not only accounts for a large cost duo to its complexity, but also
has influence on the experience of online shopping. China as a giant country that is on the way of
rapid growth of e-commerce, leaving last mile delivery becomes a problem that cannot be
neglected. The increasing popularity of e-commerce needs reliable express service; otherwise it
will drag e-commerce from further development. There is an increasing trend of using indirect
modes in last mile delivery by consumers in China, and we expect that the use of indirect modes
will surpass the use of indirect home delivery one day in the very short future. The growing
popularity of e-commerce is becoming a push factor for developing indirect delivery modes since
the frequency of receiving parcels will upswing and consumers simply do not desire to arrange the
delivery time with carriers time after time. This is the reason why indirect last mile delivery modes
are welcomed by consumers because by using indirect modes they are no longer constrained to
delivery time. Though the valuations of different indirect modes vary, they all help releasing the
pressures on parcel delivering and receiving. Particularly we see that intelligent lockers are widely
accepted for its convenience. While in some less dense neighborhoods, the property management
company might suit well more. Therefore, the use of indirect modes differs from each
neighborhood and each city, but in all they give convenience to consumers in online shopping.
According to Jens Mehmann(2015), research in the area of Crowd Logistics is still in its infancy
and only few high quality studies are available. For this reason, we have first shown a definition
of Crowd Logistics. In this respect, the main driver is the digitization of the society. The case
studies show that there are several ideas that deserve further investigation. As the considered case
studies encompass several business models and different stages of realization, a cross case analysis
led us to the development of our Crowd Logistics Maturity Model. Primarily in the area of
passenger transport and last-mile delivery, the potential is seen in an optimized use of resources.
our Crowd Logistics Maturity Model. It is the aim of our MM to identify weaknesses of the
selected business models and to deliver suggestions for improvement.

2. INDUSTRY ANALYSIS
FMCG (Fast Moving Consumer Goods) Industry, also called as CPG (Consumer packaged goods)
industry primarily deals with the production, distribution and marketing of consumer packaged
goods. Products which have a quick turnover, and of relatively low cost are known as Fast Moving
Consumer Goods (F.M.C.G.). F.M.C.G. products are those that are replaced within a year.
Examples of F.M.C.G. generally include a wide range of frequently purchased consumer products
such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as
well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods.
F.M.C.G. may also include pharmaceuticals, consumer electronics, packaged food products, soft
drinks, tissue paper, and chocolate bars. India’s F.M.C.G. sector is the fourth largest sector in the
economy and creates employment for more than three million people in downstream activities. Its
principal constituents are Household Care, Personal Care and Food & Beverages. The total
F.M.C.G. market is in excess of Rs. 85,000 Crores. It is currently growing at double-digit growth
rate and is expected to maintain a high growth rate. F.M.C.G. Industry is characterized by a well-
established distribution network, low penetration levels, low operating cost, lower per capita
consumption and intense competition between the organized and unorganized segments.
HISTORY OF F.M.C.G. IN INDIA:
In India, companies like ITC, H.U.L., Colgate, Cadbury and Nestle have been a dominant force
in the F.M.C.G. sector well supported by relatively less competition and high entry barriers (import
duty was high). These companies were, therefore, able to charge a premium for their products. In
this context, the margins were also on the higher side. With the gradual opening up of the economy
over the last decade, F.M.C.G. companies have been forced to fight for a market share. In the
process, margins have been compromised.
2.2. Common FMCG Products
Usually there are mainly four product categories of FMCG products as : home and personal care,
foods and beverages ,cigarettes and alcohol .Some common FMCG product categories include
food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics,

packaged food products, plastic goods, printing and stationery, household products, photography,
drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards,
gifts, detergents, tobacco and cigarettes, watches, soaps etc.
Figure 2 2.2. Common FMCG products
MARKET POTENTIALITY OF F.M.C.G. INDUSTRY:
Some of the merits of F.M.C.G. industry, which made this industry as a potential one, are low
operational cost, strong distribution networks, presence of renowned F.M.C.G. companies.
Population growth is another factor which is responsible behind the success of this industry.
GROWTH PROSPECTS OF F.M.C.G. IN RURAL INDIA :
With the presence of 12.2% of the world population in the villages of India, the Indian rural
F.M.C.G. market is something no one can overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the F.M.C.G. companies. Better infrastructure
facilities will improve their supply chain. F.M.C.G. sector is also likely to benefit from growing
demand in the market. Because of the low per capita consumption for almost all the products in
the country, F.M.C.G. companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded
products and offer new generation products, they would be able to generate higher growth in the
near future.

It is expected that the rural income will rise in future, boosting purchasing power in the
countryside. However, the demand in urban areas would be the key growth driver over the long
term. Also, increase in the urban population, along with increase in income levels and the
availability of new categories, would help the urban areas maintain their position in terms of
consumption. At present, urban India accounts for 66% of total F.M.C.G. consumption, with rural
India accounting for the remaining 34%. However, rural India accounts for more than 40%
consumption in major F.M.C.G. categories such as personal care, fabric care, and hot beverages.
In urban areas, home and personal care category, including skin care, household care and feminine
hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated
that processed foods, bakery, and dairy are long-term growth categories in both rural and urban
areas.
THE TOP 10 COMPANIES IN FMCG SECTOR IN INDIA
1. Hindustan Unilever Ltd.
2. ITC Ltd
3. Nestle India
4. GCMMF (AMUL)
5. Procter & Gamble Hygiene and Health Care
6. Dabur India
7. Cadbury India
8. Britannia Industries
9. Asian Paints
10. Marico Industries Commented [RM1]: Look thiss

3. COMPANY PROFILE
ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly
known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander
Deveshwar. The company has its registered office in Kolkata. It employs over 26,000 people at
more than 60 locations across India.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,
Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel,
Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding
market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-
Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.
It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's
foremost private sector companies with a market capitalization of over US $ 22 billion and a
turnover of US $ 6 billion.
ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most
Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business
World and among India's Most Valuable Companies by Business Today. ITC ranks among India's
`10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by
the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by
Business Week.
3.1. COMPANY HISTORY AND EVOLUTION
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership, progressively Indianized, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products,
Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business and Information Technology - the full stops in the Company's name were removed
effective September 18, 2001. The Company now stands rechristened 'ITC Limited, ‘where ‘ITC’
is today no longer an acronym or an initialized form.

3.1.1. A Modest Beginning
The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the
center of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926,
by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)
Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than
one. It was to mark the beginning of a long and eventful journey into India's future. The Company's
headquarter building, 'Virginia House', which came up on that plot of land two years later, would
go on to become one of Kolkata's most venerated landmarks.
1925 Packaging and Printing: Backward Integration
1975 Entry into the Hospitality Sector - A 'Welcome' Move
1979 Paperboards & Specialty Papers - Development of a Backward Area
1985 Nepal Subsidiary - First Steps beyond National Borders
1990 Paperboards & Specialty Papers - Consolidation and Expansion
Agri Business - Strengthening Farmer Linkages
2000 Lifestyle Retailing - Premium Offerings
Information Technology - Business Friendly Solutions
2001 Branded Packaged Foods - Delighting Millions of Households
2002 Education & Stationery Products - Offering the Greenest products
Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
2005 Personal Care Products - Expert Solutions for Discerning Consumers
2010 Expanding the Tobacco Portfolio
Table 1 3.1.1. Milestones

3.1.2. Vision & Mission
• Vision
Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company's stakeholders
• Mission
To enhance the wealth generating capability of the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value.
3.1.3. Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance organization
which creates value for all its stakeholders:
• Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all o-ur
stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis.
• Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
• Respect for People
We are result oriented, setting high performance standards for ourselves as individuals and teams.
We will simultaneously respect and value people and uphold humanness and human dignity.
We acknowledge that every individual brings different perspectives and capabilities to the team
and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of opportunities
and achieve leadership through teamwork.
• Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
• Innovation

We will constantly pursue newer and better processes, products, services and management
practices.
• Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our
goals, we will make no compromise in complying with applicable laws and regulations at all levels.
ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organizational culture rooted in its core values of respect
for people and belief in empowerment. Its philosophy of all-round value creation is backed by
strong corporate governance policies and systems.
3.1.4. Corporate Strategies
ITC’s corporate strategies are:
• Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
• Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by blending the
diverse skills and capabilities’ residing in ITC’s various businesses.
• Create distributed leadership within the organization by nurturing talented and focused top
management teams for each of the businesses.
• Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

Figure 3 3.1.4. Product Mix of ITC ltd
3.1.5. SWOT ANALYSIS
STRENGTHS
• Strong brand presence
• Diversified products and
services
• World class Research and
Development
WEAKNESSES
• Largely dependent on
tobacco products
• Limited export of
products and services
OPPORTUNITIES
• Untapped rural market
• E-choupal initiative
• Increasing purchasing
power of people
THREATS
• Intense competition from
fmcg companies
• Restrictions and
regulations on tobacco
products
Table 2 3.15.SWOT Analysis

4. OBJECTIVES OF THE PROJECT
Distribution plays a key role within the marketing mix, and the key to success is its successful
integration within the mix, ensuring that customers get their products at the right place and at the
right time. If the product cannot reach its chosen destination at the appropriate time, then it can
erode competitive advantage and customer relation. For any organization to be effective, there
should be effective distribution management process to convey finished products from the
manufacturer to the final consumers.
The manual delivery planning in the distribution points of ITC ltd faced several challenges which
led to late delivery. Some of the main issues were,
• The turnaround time of trucks were high. The delivery window started very late everyday
usually from 12pm in the afternoon till 5pm.Late delivery resulted in sales return. By the
time the trucks reached the shops, some of the shops would be closed for the day.
• The trucks delivered to a particular beat (a beat has nearly 40 shops in the nearby region).
The entire products to be delivered to a particular beat was loaded altogether into the truck
and the outlet wise segregation happened either inside the truck or at the delivery point.
This requires more manpower (more than one delivery boy).
• There was greater work pressure on the delivery boy which leads to attrition. If the outlet
wise segregation of the products happens at the delivery point, it’s added work to the
delivery boys and its more time consuming.
• Absence of a proper picking strategy for the loose packets which is leading to generation
of loose stocks being spread across the warehouse. The biscuit packets are often damaged
when they are left like this.
• Which and how many trucks should go in a particular route is manually decided by the
godown manager on the basis of his experience. Sometimes this leads to underutilization
of the truck space.
As a solution to the above issues, a smart delivery management system is implemented and in the
implementation phase of this automated system, many of the above issues were rectified. During
the initial phase of this project, many issues pertained within the smart system which required
rectification. Based on that, the following objectives were established.

4.1 PRIMARY OBJECTIVES
1. Study the process work flow of the new smart delivery management system.
2. To analyze the improvement in the organization both in terms of quality and cost after the
implementation of the smart delivery management system
3. To improve the storage efficiency of the warehouse and prevent the damage of products.
4. Find solution on how to decrease the truck turnaround time and increase the delivery
window.
5. To analyze and rectify the loop holes in the smart delivery management system.

5. PROJECT METHODOLOGY
5.1 STATEMENT OF THE PROBLEM
To improve the delivery efficiency at distribution points of ITC Ltd thereby helping them achieve
on time delivery and to meet customer expectations.
5.2 OBJECTIVES OF THE PROJECT
5.2.1. PRIMARY
1. Study the process work flow of the new smart delivery management system.
2. To analyze the improvement in the organization both in terms of quality and cost after the
implementation of the proposed solution
3. To find solutions on how to improve the efficiency of delivery and make it on time delivery
by making use of the new delivery system.
4. Find solution on how to decrease the truck turnaround time and to reduce the product
damages inside the godown
5. Increase the Delivery time window from the present average 4.5 hours to 6.5 hours.
6. To analyze and rectify the loop holes in the smart delivery management system.
5.2. TOOLS EMPLOYED
The various scientific tools which I have used in my project are as follows:
i. Process Flow Diagram: It shows the flow of the product or service as it moves through the
various processing operations. It makes it easy to identify potential trouble spots and locate
control activities.
ii. Time Study Analysis: It helps in computing the time and effort taken to complete each
process in a system.

iii. Forced Field Analysis: It identifies the forces and factors that may influence the problem
or the goal. It helps to understand the promoting or diving factors and restraining or
inhibiting factors so that the positives can be reinforced and the negatives can be
eliminated.
iv. FMEA: A Process Failure Mode and Effects Analysis, PFMEA is an analytical technique
used to ensure those potential failure modes and their associated causes or mechanisms
have been considered and addressed. Failure modes and effects analysis (FMEA) is a step-
by-step approach for identifying all possible failures in a design, a manufacturing or
assembly process, or a product or service
v. Fish Bone Diagram: Developed by Ishikawa, Cause and Effect diagram helps in identifying
all possible causes which results in a problem. It helps in identifying the bottlenecks and
where improvements have to be done.
5.3. SOURCES OF DATA
Data was collected through various forms in order to facilitate the study.
1. Primary data included direct interviews from Area executives and warehouse managers.
This was time consuming as this data had to be sorted later so as to obtain the relevant
information.
2. Data was also accessed from the third-party inventory management system(SIFY) which
gave sufficient information about the customer reports, sales reports etc. It also generates
bills.
3. The smart delivery management system is implemented through a software called Zoblite.
The company had given us full stretch access to this software in order to work along in the
implementation phase.
4. In order to perform the time study analysis, the data was obtained through individual
observation of the delivery processes. Several verification interviews were conducted with
senior level managers so as to ensure that the process analysis was correct.

5. In order to find the issues related to the new delivery system, Outlets were visited along
with salesmen to observe.
Department Manuals, company website along with the brochures presented the main source for
secondary data. Since these data were previously published, there were assumed to be authentic
and verified. The information on how the processes can be analyzed using Failure mode effect
analysis, time study analysis etc. were obtained from
5.4. LIMITATIONS
i. In depth analysis for each and every product could not be done due to the shortage of time.
A small survey was conducted among the employees so as to understand this.
ii. Accurate financial data on cost benefit analysis could not be obtained due to the company’s
policy on privacy of confidential data.
iii. Salesforce was not properly trained about the importance of the smart delivery
management system. So, there was resistance to change when they were asked to work for
the smart delivery management project.
iv. The initial plan was to finish the implementation in one distribution point and then initiate
the implementation in the next best WDC. Because of the lack of time, only training of the
workers could be finish in the second WDC.

6. PROCESS STUDY
6.1. THE PROCESS WORKFLOW
Figure 4 6.1. Process Workflow
6.1.1. ORDER CAPTURING
The smart delivery management system starts with the very first process of order capturing which
is performed by the salesmen. The four different categories of grocery are dealt by exclusive
salesmen for each category. The salesmen capture order on a daily basis by visiting a single beat
(nearly 40 outlets) a day and capturing the order in vajra (mobile device). The device is now
integrated with an option for capturing the latitude and longitude of each shop. This is done by the
salesmen by standing right in front of the shop and clicking on the capture button.
6.1.2. ORDER GETS PUSHED INTO THE SYSTEM
The order capturing activity starts at 9;30 am and the salesmen have to finish their duty and report
back before 5pm and sync the data to the and the SIFY (third party software). SIFY checks for
stocks in warehouse and compares with the demand of each outlet and generate bills for each
outlet. From SIFY, the necessary customer details for the next day such as demand of each outlet,
number of loose packets, number of cfcs of each SKUs, the billing amount, the outlet name, their
belonging beat and the latitude-longitude is sent to the area manager in excel sheet which is cross
checked by the area manager and converted into a format suitable for uploading into the delivery
software called Zoblite.

The required data is uploaded in Zoblite and the date of delivery along with the channels for which
the shipment is to be generated is entered. There is a provision for entering the time slot (10 am to
5pm) according to which the time frame for the shipments is generated.
The entire customer master along with their location details, the Product SKUs, the billing
amounts, CFC measurements, Vehicle space measurements and crate measurements were made
available to the software company Asset tacker who customized the software Zoblite according to
the requirements of ITC.
Figure 5 6.1.2.Beats in Zoblite
6.1.3. ROUTE PLANNING AND OPTIMIZATION
The above picture is the shipment view of a particular day. Here you can see 8 shipments named
from A to H. On the map, all the outlets belonging to shipment A are shown in same color(blue)
similarly it is shown for all the shipments. The list of shipment is also generated which will have
the following data:

Shipment number: If there are eight shipments a day, each shipment will have a unique four-digit
number.
Date: The Shipment is usually generated on D-1 day. To generate the shipment for a particular
day, the date is entered.
Time slot: The time slot set for the shipment or the delivery window is from 10 am to 5pm.There
is provision to add a tolerance value say, 5 mins at each outlet since unloading at each shop takes
few minutes. By taking into account, the quantity to be delivered to each shop, a time slot is allotted
for the halt at each outlet.
6.1.4. LOAD PALNNING
Vehicle Type: There are four types of delivery trucks in TCS and sons. The capacity of the vehicle
along with other dimension details are available in Zoblite. According to the shipment and how
much that shipment contains, the software generates a particular vehicle type that can be used. By
taking into consideration the number of CFCs and crates carrying loose packets, the suitable
vehicle type is generated.100% utilization of the vehicle space to load the products isn’t an idle
situation as there should be some space inside the vehicle for the delivery boy to stand and unload
it at the delivery point after cross checking the bills. Therefore, there is a provision for a 3% space
tolerance inside the vehicle.
There are four types of vehicles:
Sl.
no
Name Leng
th(m
)
Width(m
)
Height(m) Weight
capacity(
kg)
Volume
Capacity(m
3)
Vehicle
cost(Rs)
1 2.185 1.524 1.828 1000 6.090896 1000
2 3.048 1.828 1.828 3000 10.193970 3000
3 4.953 2.133 2.188 6000 23.126860 6000
4 2.539 1.905 1.594 1400 7.710233 1400
Table 3 6.1.4.Type of Vehicles
Bulk summary and bulk picklist: The bulk summary includes the customer ID, customer name,
details about item code, item name, quantity to be dispatched and billed amount. The picklist has
the name of the customer, customer ID, shipment reference number, item name, Quantity to be
Commented [RM2]: Vehicle name

dispatched. A copy of bulk picklist is given to the warehouse manager who in turn supervises the
loading of the CFCs into the vehicles as per the bulk picklist on the day of delivery.
Figure 6 6.1.4.Shipment List
6.1.5. JOB SCHEDULING AND ASSIGNMENET:
The Job schedule has all the necessary details of each outlet in a particular shipment. It has the
outlet wise bill number, the address of each outlet, contact number, kilometers covered and also
the estimated time allotted for each outlet.
A print out of both the bulk and break list is given to the warehouse manager who in turn supervises
the picking of break items on D-1 day. Unlike the traditional manual load sheet, here the godown
manager has the list of outlet wise break and bulk demand. According to this, the loose packet
demands for each outlet is picked and put in outlet wise crates which are numbered. Once the boys
finish picking, the numbered crates are kept ready in stacks which will be loaded into the vehicle
next day morning. On the delivery day, the CFCs are loaded into the vehicle along with the outlet
wise crates. The shipment generated is synced to a mobile phone and is assigned to the delivery
boy. On the delivery day, the bulk CFCs are loaded into the vehicle followed by the outlet wise
crates.

Upload in Zoblite
Invoice not
generated
Handed over to
Godown
Manager
Bulk & Break
picklist generated
CSV format
prepared
Send to
customer master
to AE
Order
Capture
Sync to SIFY
Stock-check for all
SKUs in SIFY
Load
Sheet
Generatio
n
Outlet wise
invoice generation
Upload in
Zoblite
Generate
Shipment
Vehicle
assignment
Syn
Vehicle
assignmen
t
Upload in
Zoblite
Assign Mobile devices
to Delivery boy
NO
YES
Figure 7 6.1.5. Shipment generation

6.1.6. e-TRIP SHEETS AND DELIVERY
Figure 9 e-Trip sheets
e-trip sheets are pushed into the smartphones of the workers. The delivery boys while leaving the
godown for delivery, Clicks on the start job button. The sequence of outlets to be visited and the
ETA per outlet is available to them. The delivery boys can easily navigate to the outlet. Delivery
status of each order is updated in real time by the workers. Workers are assisted with e-proof of
delivery and payments.
Print out of Bulk
and break picklist
Hand over to
Warehouse manager
Manager
supervises picking
Simultaneous
picking by two men
Outlet wise
crates(numbered)
Trucks leave for
delivery
Loading of crates
into truck
Loading of bulk
CFCs to k4 truck
Kept ready in
stacks for loading
Figure 8 6.1.5. Picking & Loading

6.2. DATA ANALYSIS
6.2.1. OBJECTIVE: IMPROVE STORAGE EFFICIENCY
To find out the present issues, the number of CFCs dispatched over past 90 days at SKU level were
observed and summarized by filtering the data from SIFY. This in turn was used to find the
percentage of bulk sales and break sales.
Row Labels Sum of
Bulk CFC
Sum of
break CFC
Total N:
of CFC
%of Bulk %of Break
CDM 6315 409 6724 94 6
GR1A 5370 6240 11610 46 54
GR1B 29617 3867 33484 88 12
GR1C 3693 6866 10559 35 65
GR2 270 287 557 48 52
1SS 16975 6095 23070 74 26
SWD 6557 107 6664 98 2
Grand Total 68797 23872 92669 74 26
Table 4 6.2.1. CFC dispatch List
• From the above table, it is clear that 74% of line items are Delivered in Full
• CFCs and 26% of line items are delivered in packs.
• The stocks are stored in random manner and delivery boy tear- off the CFCs and takes the
loose outers(packs).
• The picking needs to be done in less than 70 minutes average per shipment. So, the delivery
boy (picking staff) randomly opens the same SKU from different CFCs and takes the
packet. This is leading to damage of products especially biscuits.
• The efficiency of storage is less. The searching and picking time is also more.
Figure 10 6.2.1. Damaged Item

Solution
Effective picking and loading-BULK and BREAK ZONE
A bulk and break zone is created inside both the warehouses. The bulk zone has storage of CFCs
and the break zone has storage of loose packets. A cage area is created (slotted angle rack) from
where break picking happens. Based on the nature of loose load going into each truck, there will
be a list of SKUs whose frequency and volume of loose distribution is high. There will be daily
replenishment of items in the break zone which is determined on the basis of Sales velocity. The
items with high sales volume are stored closer to the picking zone.
Figure 11 Bulk & Break Zone
Benefits
• This will prevent opening of many CFCs randomly for the same product every time picking
happens.
• This in turn will reduce the damage of products
• It increases the storage and picking efficiency. Every time picking happens, the delivery
staff can pick the loose packets from the break zone.
BULK
ZONE
BREAK
ZONE

6.2.2. TIME AND MOTION STUDY
Traditional vs Bulk and Break
Actual Time study was conducted to assess the time taken to pick and load the loose packets and
CFCs separately. Certain work elements were chosen for the same and the time taken for each
element is observed.
Pre-bulk and break scenario
For loose packets
Time corresponding to each work element is recorded.
Name Packets Operations Transport Delay Loading Total [in
sec]
Ashok 18 168 75 64 77 384
Mouli 1059 548 658 93 0 1299
Total 1077 716 733 157 77 1683
Index per
PC
0.66 0.68 0.14 0.07 1.56
Table 5 Pre Bulk & Beak Scenario for loose packets
Bulk CFCs
CFC Operations Transport Delay Loading Total [in
sec]
Ashok 12 147 291 85 167 690
Mouli 41 173 559 31 42 805
Total 53 320 850 116 209 1495
Index per
Piece
6 16 2 4 28
Table 6 Pre Bulk & Break Scenario for bulk CFC's
POST BULK AND BREAK ZONING
LOADING OF CFCS.
Actual time study was conducted to assess the time taken to pick and load the CFCs.The results
are as follows:

Name CFCs Operations Transport Delay Loading Total [in
sec]
Ashok 17 198 92 48 70 408
Mouli 45 112 528 76 178 894
Total 62 310 620 124 248 1302
Index per
Piece
5 10 2 4 21
Table 7 For Bulk CFC's
LOADING OF LOOSE PACKETS
Actual time study was conducted to assess the time taken to pick and load the break items.
Results are as follows:
Packets Operations Transport Delay Loading Total [in
sec]
Ashok 350 182 115 15 25 337
Mouli 1100 558 668 58 77 1361
Total 1450 740 783 73 102 1698
Index per
PC
0.51 0.54 0.05 0.07 1.17
Table 8 For Break loose packets
TIME AND MOTION RESULTS
Section Vehicle Total CFC
loaded
Total Packs
Loaded
Time taken
(Manual
System)
Revised Time
(Smart System)
GR1A KA05B7784 108 108 43 30
ISS KA19C8799 292 292 104 73
GR1B KA51 8226 220 510 58 54
Grand Total 620 4629 206 158
Reduction -24%
Table 9 Time & Motion Results
• 24% picking time can be reduced using the new scenario leading to efficiency in market
service within time window

6.2.3. FORCED FIELD ANALYSIS
OBJECTIVE: To Find the promoting and inhibiting factors for ON-TIME DELIVERY
Promoting Factors Inhibiting Factors
*Make salesmen understand the importance *Resistance to change
*Increase the training involved *Storage efficiency issues
*Delivery boy trained to use Zoblite *Picking strategy issues
*New kitting shift introduction *High turnaround time for trucks
*Decrease delivery boy workload Mobile network connectivity issues
Table 10 Force Field Analysis
6.2.4. FISH BONE DIAGRAM.
In order to further initiate the implementation of the smart delivery management system in other
Distribution points, a major comparison was to be done between the automated system and the
manual system. A fish bone diagram was developed in order to have more insights into the causes
of a manual delivery management and its effect.
Figure 12 Fish Bone Diagram

Poor delivery management due to:
• The load sheet generated via SIFY is for a particular beat. For example, if a region has 20
outlets and the demand for delicious cookies in that area is 20 CFC’s, this total number is
generated in the load sheet. So, the requirement of each shop is not known unless the
delivery boy checks the bill.
• The entire loading into a vehicle happens according to this load sheet. Extra manpower is
needed inside the vehicle if the outlet wise segregation has to happen inside the vehicle.
Extra two people will have to be occupied inside the vehicle who will segregate the packets
outlet wise by referring the bill. This requires additional manpower and is time consuming.
• On the other hand, if the segregation happens at a delivery point, the manpower
requirement is less as the delivery boy himself will be doing this. But again, more time is
consumed.
• The vehicle allocation happens manually as per the experience of the go down manager.
He decided which vehicle should go in which direction and should carry what amount. This
can lead to less utilization of the vehicles.
• The delivery happens to different routes on different days. If the delivery person is new at
work, he may not know the routes beforehand. This in turn delays delivery.
• The picking and loading happens in the morning. This job takes up about 3 hours on an
average and the delivery starts only by afternoon. There are possibilities of incomplete
deliveries and returns
6.2.5. FAILURE MODE EFFECTS ANALYSIS
STEPS
1. List the failure modes of each input.
2. Assign 1-10 for SEVERITY. 1 being not severe and 10 being catastrophic, death, shutdown.
3. Assign 1-10 for the frequency of OCCURRENCE. 1 – extremely rare, 10 being at every
opportunity.
4. Assign 1-10 for the capability of DETECTION of the failure mode. 1 being detectable every
time, 10 being impossible to detect.
5. SEVERITY * OCCURRENCE * DETECTION = RPN
6. The goal is to reduce the highest RPN

SL.
no
Item /
Function
Potential Failure
Mode(s)
Potential Effect(s) of
Failure
Sev Occ
D
e
t
RPN
Recommend
ed Actions
1
Picking
Picking wrong
goods
wrong goods
dispatched
6 4 6 144
Thorough
Verification
picking wrong
quantity
Shortage/Excess in
warehouse
6 6 7 252
Strict
Security
Check
2
Vehicle
space
utilization
Vehicle
overloaded
Insufficient space for
arranging crates
inside truck
5 4 6 120
Zoblite data
analysis
3 Geo
tagging
Attaching
wrong Latitude
and Longitude
Failure at locating
outlets leading to
non-delivery
8 9
7
576
Accurate
Geo tagging
of each
outlet
4 Loading
Loading to
wrong vehicle
Wrong goods reach
wrong destination
7 5 3 105
Verify
license plate
by prompt
supervision
5
Packing
Frequently
opening fresh
crates for loose
quantity
Large number of
loose packets led to
DND and theft
8 8
7
448
Improve
warehouse
storage
efficiency
6
Data
connectivit
y
Unable to
navigate to
outlet
Delay in full phase
implementation of
smart system
4 5 2 40
Proper
training of
salesmen
Table 11 FMEA

SEVERITY
P
R
O
A
B
I
L
I
T
Y
10
9 Geo
taggin
g
8 Packin
g
7
6 Pickin
g
5 Data
Connec
tivity
4 VSU Pickin
g
3
2
1
1 2 3 4 5 6 7 8 9 10
Table 12 Severity Matrix
From the above table we can observe that the RPN for Geo tagging is the highest, followed by
packing loose quantity.
PROBLEM IDENTIFIED: WRONG GEO TAG FOR OUTLETS.
The salesmen were instructed to capture the latitudes and longitudes using Vajra. This data is then
synced to SIFY(third party order management and billing software used in ITC).From SIFY, this
data was uploaded in Zoblite in the required format to see the customers on Map.

Table 13 Wrong Geo-tag
From figure, it is quite evident that many of the latitude and longitudes were wrongly captured.
Many shops were seen as out of the beat in the map. Some addresses were wrong. Some salesmen
had internet issues. Some had taken the liberty to capture it somewhere on the way rather than in
front of the shop. Some had not captured at all. The project could accurately function only if geo-
tags are accurate. So, the corrections for the entire 3400 should be done and the reasons why these
are wrongly captured were studied.
A list of all the shops with wrong latitude-longitude with their beat information was found out and
listed. The report was submitted to the area managers. Salesmen were allocated to go there and do
the capturing properly once again.
Actual Beat
Wrong Geo
tagged outlets

Figure 13 Wrong Geo Tag
6.2.6. Objective: Decrease The Truck Turnaround Time And Increase Delivery
Window
Solution
• New kitting and picking shift on d-1 day
Recommendation:
• Order sync in SIFY and invoice generation/vehicle level planning should happen after 5
pm(D-1 day)
• Introduction of kitting shift (D-1 day)
• Kitting of vehicle/outlet level/packet level order lines and keep in ready condition on
previous day.
• Morning shift shall start at 8 am for vehicle scheduling and loading.
• In the morning, only bulk CFCs are to be picked. The breaks are in ready condition.
• Usage of crates for picking break lines.
• Thus, the delivery window is increased from 10 am to 5pm.
Figure 14Crate packing
0 5 10 15 20 25 30
Devasandra
Kaggadasapura
Annapalya
Munnekolllal
Marthahalli
Panathur
Belthur
Bellandur
Thippasandra
Kadugodi

• SIFY order sync at
5pm
• K4 vehicle planning
• Load sheet-CFC pick
and break pick
• Placement of the K4
vehicle as per plan.
• Bulk CFCs goes into
truck
• Kitted crates shall be
loaded
• Vehicles goes to
market.
• 2 knitters shall pick
loose packets outlet
wise
• 1 checkers shall
conduct accuracy check
of picking
• Labelling on the
crate(outlet name) for
easy identification
Figure 15 New Kitting shift

7. FINDINGS & RECOMMENDATIONS
7.1. FINDINGS
The implementation of the smart delivery management system was completed successfully at TCS
and Sons, one of the distribution points of ITC Ltd, Bengaluru. Many issues that pertained in the
manual system were overcome by this new system. The initial phase of the new system had some
issues which were mainly internal. This issue was also identified and rectified. The delivery
planning in the distribution points of ITC Ltd faced several issues which prevented on time
delivery.
• Absence of a proper picking strategy for the loose packets was leading to generation of
loose stocks being spread across the warehouse. The biscuit packets are often damaged
when they are left like this. As a solution to this, the storage efficiency of the warehouse
was improved by creation of a bulk and break zone inside the warehouse. Also, a time and
motion study of the bulk and break zoning showed that the loading efficiency also
improved by 20%.
• The entire products to be delivered to a particular beat was loaded altogether into the truck
and the outlet wise segregation happened either inside the truck or at the delivery point.
This required more manpower and was more time consuming. As a solution to this, the
new delivery system has a provision which provided load sheets with outlet wise demand
of items. The new system has outlet wise crates into which the break demand for each
outlet is separately filled.
• Which and how many trucks should go in a particular route was manually decided by the
godown manager which sometimes led to underutilization of the truck space. As a solution
to this, the new system takes into consideration the number of CFCs and crates carrying
loose packets after which the suitable vehicle for each shipment is generated.
• The trucks couldn’t deliver to certain shops because they couldn’t locate them properly on
the route map. Around 340 shops had wrong geo tags. A pareto chart was used to find
which beats were more critical and the latitude-longitude of this outlets were recaptured
and rectified.
• The turnaround time of trucks were high. The delivery window started very late everyday
usually from 12pm in the afternoon till 5pm.Late delivery resulted in sales return. A new

kitting shift was introduced on the previous day of delivery which increased the delivery
window by 2 hours. This resulted in on-time delivery to all the outlets.
• FINANCIAL BENEFIT ANALYSIS
Manual Sm New sm Net reduction Financial impact
Supervisor for
K4 loading
2 1 1 -Rs15000
Knitters+
checkers for
loose picking
3 2 1 -Rs 12000
Delivery boy for
K4
2 1 1 -Rs12000
Truck driver 1 1 0 0
Total 8 5 -3 -Rs38000
There is a per month financial benefit of Rs 38000.
Annual cost benefit = Rs. 456000
7.2. CONCLUSION
The internship that took place in ITC Ltd, Bengaluru gave a lot of insights into the working of the
company and their products. It helped in understanding the distribution channels of the company
in depth which in turn helped in rectifying the issues at the distribution points A smart delivery
management system was implemented at one of the distribution points.
Time Study Analysis and tools like Fish bone diagram, FMEA, Pareto Chart etc. were used
to analyze how the new smart delivery management system helps in improving the delivery
efficiency at the distribution points. Various suggestions were made in order to increase the
delivery window and also to improve the storage efficiency in the warehouses.
7.3. RECOMMENDATIONS
Based on the analysis done, the following recommendations were given:
1. The implementation of smart delivery management system at one distribution point faced
several issues that were internal. The salesmen were reluctant to recapture the outlet geo-
Commented [RM3]: Financial benefit analysis

tags. They considered this as extra work. The accurate working of the smart system was
delayed because of this. Before, implementing this system in other distribution points of
ITC , the entire Salesforce and delivery boys should be well educated about the importance
of this system.
2. The outlet-wise crates are numbered as per the outlet for convenience of finding the crate
from inside the truck. But their arrangement inside the truck is not in Last in First
Out(LIFO) manner. There will be no confusion or delay in finding the crates from inside
the truck at the delivery point if they are arranged in LIFO.
3. The software Zoblite is currently being used only for delivery management. It can be
customized for inventory management at the distribution points.
4. There are two types of crates available in the warehouse. The dimensions of only the bigger
crate is uploaded in Zoblite. Shops with lesser item can be picked and filled in smaller
crates which will help in better utilization of the truck space. Thus, the dimensions of
smaller crates should also be uploaded in Zoblite.
5. There are few outlets which are not being serviced presently or are permanently closed.
Details about such shops should be permanently removed from the central sever so that it
will not become a part of Zoblite masters.

8. LEARNINGS
• Got an understanding about how the WDCs function and what are their
major roles.
• Got deeper insights into the functioning and customization possibilities of
software such as Zoblite.
• Understood the importance of automation and the level of improvement
possible in a company.
• Proper coordination between employees and Top Management can ensure
that things work smoothly
• Proper managing of warehouse is important to improve storage and loading
efficiency.
Commented [RM4]: Learning

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