Professional Documents
Culture Documents
Logistics Project - Removed
Logistics Project - Removed
Logistics Project - Removed
Submission By :
Raj Jaiswal - 84
Shruti Mukherjee - 95
INDEX
Inventory Management 13
Suppliers 17-19
Conclusion 22-23
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Acknowledgement
We would sincerely like to thank everyone who played a huge part in helping us make this
Project. We have been fortunate enough to get good timely advice and support from a host of
We take this opportunity to express our heartfelt thanks to Prof. Shilpa More for her support and
cooperation in assigning us this project work and for her advice and support throughout the
It gives us great pleasure to express our gratitude to Mr. Rajneesh Sharma, Finance Controller, of
Sealed Air Packaging Materials (India) LLP. He was gracious enough to assist us by allowing us
to tour his manufacturing facility, directing us and allowing us to take pictures of his workspace
without any restrictions, and cooperating with us by patiently responding to all of our questions.
The insights he provided us with greatly aided us in finishing the project work.
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Sealed Air Corporation is a packaging company known for its brands: Cryovac food packaging
and Bubble Wrap cushioning packaging. Their portfolio of brands has expanded to include the
Autobag, Nexcel, and Sealed Air brands. The product care section of Sealed Air creates
protective and specialty packaging materials for a variety of products, while the food care
In 1957, American engineer Alfred W. Fielding and Swiss inventor Marc Chavannes attempted
to invent plastic wallpaper with a paper backing. While the wallpaper failed, Fielding and
Chavannes later realized that what they had come up with could be used for packing
material.Sealed Air was founded in 1960 based on this invention of Bubble Wrap.The same year,
Sealed Air raised $85,000 in its initial public offering.[10] Fielding served as executive vice
president and director of Sealed Air until his retirement in 1987, while Chavannes worked
mostly as a consultant.
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Shortly after a 1998 business restructuring of the global conglomerate W.R. Grace
Company-Conn, the original Sealed Air was merged into Grace subsidiary W. R. Grace & Co.
NY, and the surviving company was named W. R. Grace & Co. Shortly thereafter, this W.R.
Grace & Co renamed itself Sealed Air, the name of the current entity, but now a vastly larger
corporation due to the Grace components. Years later, in 2002, this Sealed Air Corporation was
required to pay W. R. Grace Company-Conn $728 million to settle[11] bankruptcy and fraud
allegations brought against the original merger. T.J. Dermot Dunphy served as CEO from 1971 to
2000.An Oxford University graduate who received his MBA from Harvard Business School, he
became chairman of Kildare Enterprises, LLC in November 2000 after leaving Sealed Air.
During his tenure at Sealed Air, sales grew from $5 million to $3 billion.
William Hickey served as CEO from the year 2000 to March 2013. He previously served in
several capacities at Sealed Air, including COO, executive vice president, CFO, vice president,
and general manager of the Food Packaging Division and the Cellu Products Division.Before
working for Sealed Air, he was CPA at Arthur Young and CFO of W. R. Grace and Company's
Sealed Air produced the foam that was ignited in the 2003 Station nightclub fire and has paid
In March 2013, Jérôme Péribère took over as CEO and President of Sealed Air. He obtained his
business economics and finance degree from Institut d'études politiques in Paris, France. He
previously served as president and COO of Sealed Air before taking over as CEO, and prior to
joining Sealed Air, he worked in several managerial roles with the Dow Chemical Company
Acquisitions
In 1970, Sealed Air acquired Smith Packaging Ltd., which was later renamed Sealed Air of
Canada, Ltd., marking Sealed Air's first international move.In 1971, Sealed Air began marketing
a new product; by laminating the AirCap cushioning to paper, the company now had Mail Lite
In 1973, Sealed Air began marketing Ply-Mask, a pressure-sensitive polyethylene film used to
protect delicate surfaces from scratches and the company's first product not based on its bubble
technology. The same year, Sealed Air brought their market to Europe by acquiring 10 percent of
Sibco Universal, S.A., a French manufacturing firm. Over the next few years, Sealed Air bought
out the rest of Sibco and came up with the Sealed Air Solar Blanket.
Acquired in 1977, Instapak foam is an expanding polyurethane foam that comes in a variety of
densities. Used primarily for shipping, the foam-in-bag process molds to the shape of the object
Sealed Air acquired Cellu Products Co. and Dri-Loc in 1983, Jiffy in 1987, Sentinel in 1991,
Trigon Packaging NZ 1993, and the Shurtuff Division of Shuford Mills, Inc. in 1993. In 1994,
Sealed Air followed up with the further acquisitions of Hereford Paper and Allied Products Ltd.,
Sup-Air-Pack, Fill Air, and packaging companies based in Norway, France, and Italy.
In 1998, Sealed Air was acquired and merged with the Cryovac Division of W.R. Grace for a
$4.9 billion stock trade, and spun off from the Grace parent holding company as W. R. Grace,
Inc. That corporation changed its name to the current Sealed Air.In June 2000, Sealed Air
purchased Dolphin Packaging for $119 million, to better serve its European customers. In
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October 2011, Sealed Air acquired Diversey Holdings, Inc, until its acquisition by Bain Capital
in September 2017.
In October 2017, Sealed Air acquired Fagerdala Singapore Pte Ltd., a manufacturer and
3. E-commerce
6. Electronics
8. Apparel
9. Aeronautics
10. Agriculture
Enterprise Resource Planning (ERP) software is the only tool the business uses to control its
supply chain and logistics. They used ERP software from Sage Software Solutions Pvt Ltd.
Additionally, their dedicated IT team undergoes regular cybersecurity and best practices training
to reduce the risk of information theft, phishing attacks, hacking, etc. Workshops for
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management are also conducted regularly in which attendance is mandatory for all employees at
What is ERP?
The integrated management of key business activities, frequently in real time, is known as
enterprise resource planning (ERP). An organization can use ERP to gather, store, manage, and
understand data from a variety of business activities. ERP is commonly referred to as a type of
may operate locally or in the cloud. Due to the ease with which information is now accessible
from any location with Internet access, cloud-based apps have increased in popularity in recent
years. On-premise ERP solutions from the past are now viewed as outdated technology.
Using shared databases maintained by a database management system, ERP offers an integrated
ERP systems monitor the status of company obligations such as orders, purchase orders, and
payroll as well as resources such as cash, raw materials, and production capacity. The
applications that make up the system share data with many departments that supply the data,
including production, purchasing, sales, accounting, etc. ERP handles links to external
2) Keep needed stock levels high to minimize cash invested in excess inventory.
4) By ensuring that the stock does not drop below the predetermined threshold, it helps them
5) Uphold superb vendor and client relationships: -Improve customer service by responding to
their questions right away. controls the performance and quantity of suppliers.
Sealed Air uses Sage 300 ERP software which suits the needs of their industry, through leading
enterprise management solutions that help them navigate complex data so they can drive
business growth. X3’s extensive network of 40,000 accountants and 26,000 business partners
cloud or on-premise.
2) A single solution for managing Sealed Air’s core business processes including inventory,
4) Managing Sealed Air’s financial operations with general ledger, cost accounting, and
5) Provides a complete view of Sealed Air’s customers across sales, marketing, customer
service and support Ideal for manufacturing, wholesale distribution, and service
processes.
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6) The purchase order is automated with the use of ERP. Purchase transactions
automatically update item quantities and costs in the Inventory Control module and issues
7) Order entry is fully integrated with inventory control and accounts receivable. It makes
Warehouse Management
Sealed Air has outsourced their warehouse management to a third party MNC, namely Toll
Logistics. This decision was taken to keep the costs low. Toll Logistics use their own system for
warehouse management. They use leading warehouse management systems for optimization of
operational tasks, with full electronic interfacing capabilities. Analytics and performance
intelligence reporting in real time. They have robust security practices throughout all operations.
1. Bhiwandi
2. Ghatkopar
3. Banglore
4. Haryana
Toll Logistics has provided Sealed Air with custom built warehouses that are specialized to the
industry and environmentally sustainable.This has helped the company to operate efficiently
through optimal use of warehouse space and state of the art warehouse technologies. The
services provided are customized to meet the company’s requirements, including the choice of
location to streamline routing; getting you close to your customers and helping you create a
Toll’s supply chain and warehouse team uses a dedicated approach to ensure that they deliver a
solution that provides Sealed Air Pvt. Ltd. with operational excellence, efficiency and flexibility
in their business.
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Toll has undertaken quantitative analysis of the following factors to design optimal warehousing
2) Property selection
Through a detailed analysis of Sealed Air’s requirements, Toll provides four semi automated
warehouses to the company. Toll’s warehouse location optimization uses specialized software
and tools to assist in the selection of the most appropriate location for a new warehouse, based on
demand, cost and service levels. Toll offers multivariable modeling for location selection,
including ‘center of gravity’ analysis and taking into account many other variables including
Inventory Management
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The team at Sealed Air Pvt. Ltd. develops monthly and quarterly demand predictions for the
various amounts and types of goods that will be ordered from their suppliers as the first stage in
inventory planning. This is based on data from previous orders the consumer has placed.
Since Sealed Air is a trading company, the bulk of its products originate abroad, primarily in
APAC nations like China, Malaysia, and Singapore. The lead time for these products can range
from 60 to 90 days.
Lots of inventory may go unsold if the inventory is not correctly assessed in accordance with the
demand for the company's goods or services. This raises costs and takes up warehouse space that
Sealed Air Pvt. Ltd. has made it possible to overcome this problem of unsold inventory. Since
the suppliers of Sealed Air require 60-90 days to deliver their orders, Sealed Air Pvt. Ltd. cannot
use the Just-In-Time Inventory (JIT) method. JIT is a form of inventory management that
requires working closely with suppliers so that raw materials arrive as production is scheduled to
Instead of the JIT method, Sealed Air Pvt. Ltd. uses a uniquely customized method of inventory
management where they use demand forecasting techniques to gauge the quantity of products
which can be demanded in the upcoming 2 to 3 months, in order to make up for the 60-90 day
window provided by their suppliers in order shipment delivery. In other words, Sealed Air Pvt.
Ltd. maintains 2 to 3 months worth of inventory stock at all times. The goal is to have the
minimum amount of inventory on hand to meet demand. When asked why they use this type of
method over others they said that a lot of times, due to Covid-19, the supply would not come on
Order Processing :
● The order processing starts from the information flow. The clients inform the company about
their requirements through a formal purchase order detailing the expected time of delivery,
product type and quantity, preferred mode of delivery (roadways, airways, waterways).
● The second step deals with checking the inventory that is managed by ERP Software. The
customer service team confirms the presence of enough stock in the inventory and processes the
● An advance payment of half of the order value is confirmed by the ERP software.
● Once the payment is validated by the ERP software, the order is dispatched within 24 hours.
● The order is delivered to the customer by their preferred mode of transport, in an average lead
time of 3 to 4 days.
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Manufacturing :
Sealed Air Pvt. Ltd. is a majorly trading based company. About 90% of the company’s revenue
comes from trading activities. However, 10% of the company revenue is generated through a
● The first step in the manufacturing process is to create a mixture of different types of
● Nylon is added to the resins to increase their structural and tensile strength.
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● Plexar resin is then used to provide elasticity and flexibility to the resin mixture which
● The extruder melts and distributes the resins, forming a film. The extruders operate at an
average temperature between 232 degrees celsius to 266 degrees celsius. Safety
● The film made by the extruder carries through a series of rollers and forms the desired
thickness
● The thick film is vacuum rolled between a set of cylinders whose surface is indented into
circular shapes which define the size and shape of the air bubbles to be formed.
● As the film rolls between the indented cylinders, it cools down to form solidified
● The next step is to cut and perforate as well as inflate the bubble wrap. Each TRP
● Once the bubble wrap exits the machine, stringent quality checks are performed on it
before bagging it in thin plastic sheets and packaged into cardboard boxes.
● The finished packaging product is shipped domestically and internationally via roadways
and waterways.
Suppliers
They have more than 15 major suppliers. Their main suppliers are located in APAC countries
such as China, Malaysia and Singapore. They follow a strategically structured framework to
The factors that are taken into consideration while choosing their suppliers are as follows: -
2. Quality score
Since Sealed Air Pvt. Ltd.'s value proposition includes providing sustainable packaging solutions
that indicate higher raw material costs, which can significantly be reduced by highly efficient and
automated technological processes, the technology used in production is the most important
factor in choosing a supplier. In fact, Sealed Air Pvt Ltd. boasts a team of experts that lead their
very own research and development department and who collectively hold up to 91 patents.
For packaging of food, Sealed Air Pvt. Ltd. necessitates that containers made of plastic materials
receptacles for packing or storing whether partly or wholly, food articles namely :—
(iii) IS : 10151 (Specification for Polyvinyl Chloride (PVC), in contact with foodstuffs);
(vi) IS: 11704 Specification for Ethylene Acrylic Acid (EAA) copolymer.
The company is committed to producing and delivering protective packaging products that
exceed industry standards for quality and safety. They continue to follow rigorous precautionary
measures that are recommended by health officials and local governments to protect their
The order process costs are the expenses incurred to create and process an order to a supplier.
These costs are included in the determination of the economic order quantity for an inventory
item which is approximately Rs.12,00,000. Ordering costs are the expenses the company incurs
to purchase and receive the products it stocks in its inventory. These ordering costs can include
shipping fees, unexpected transportation costs, inspection fees and other expenses necessary to
1) Ex Works: At the seller's gate, the buyer receives ownership of the sold goods for the
agreed upon or stipulated price. After that, the buyer is responsible for covering any risks
and costs associated with transporting the products to their premises (or another specified
location).
2) Free on board is referred to as FOB (FOR is a version of this). At the seller's expense, the
products are transported to the ports and loaded onto a ship. After then, the customer is
responsible for paying the freight, insurance, and any other costs that may arise. The
products are delivered at the quayside by the seller at the agreed-upon price under the
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FAS (free alongside) variation; all additional risks and expenses are assumed by the
buyer.
3) CIF (Cost, Insurance, Freight) refers to an arrangement in which the agreed-upon price
covers all costs up to and including the delivery of the goods at the port of call (i.e., the
port of final destination). After that, the buyer arranges for customs clearance and
The main issue revolves around who pays for what. The ex-works price is obviously lower than
the FOB/FOR price, which in turn is lower than the CIF price. In cases where there is no
overseas shipment involved, CIF is virtually door delivery at the buyer’s premises.
Since Sealed Air Pvt. Ltd. has a high presence in India, therefore they use FOR method for
transportation. The FOR method stands for “Free On Road”. Therefore, the cost of delivery of
The reason behind preferring roadways over railways for domestic transportation is to be more
cost effective. It takes 3 to 5 days to reach the final destination from the warehouse. The business
prefers using ships over airplanes for overseas orders. Airways are employed for orders that need
to be delivered urgently. The client is required to cover the cost of shipping goods by air.
Sealed Air Pvt. Ltd. uses both dedicated road transport vehicles and courier partners. When
courier partners are employed, orders are shipped through a combination of part shipment and
full truck load. A part shipment entails a mode of transportation where the courier partner carries
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shipments from various clients in the same vehicle, thereby reducing shipment costs for the
clients. Whereas, in case of a full truck load, the client books the entire storage space of a vehicle
Reverse Logistics
After the products are delivered, if the customer decides the quality isn't up to par and rejects the
shipment, it is the company's duty to pick up the rejected goods from the customer's location.
This is because Sealed Air Pvt. Ltd. uses FOR or Free On Road method of logistics, where the
company takes full responsibility of delivery at the client’s address, unlike Ex-works method
where the client has to pick up the order from the warehouse. For the business, this process is
expensive. Hence, Sealed Air Pvt. Ltd. generally uses courier partners in a part truck load
After the product is picked up, the return is processed using the software which is linked with
inventory control and accounts payable. Return packages are opened by hand, classified into
reusable and discarded.After repairs made, they are repackaged and added into the inventory list.
It takes the business nearly two weeks to add the returned product into inventory.
Ensuring the safe and dependable production and transport of food, consumer goods, medicine,
and other necessary supplies is core to Sealed Air's purpose. They are in business to protect, and
that remains their top priority. They have put significant business continuity plans and
preventative measures in place to protect our operations and customers from adverse impacts.
Their manufacturing plants continued to operate and they generally maintained the normal lead
time for their customers. During the pandemic, their inbound receiving and outbound shipping
● Leveraging their global manufacturing and supplier network to transfer necessary raw materials
and finished goods from other manufacturing sites to the areas where they are needed most .
● Sharing Sealed Air’s health and hygiene guidelines with all global suppliers to ensure product
safety.
● Selectively and strategically increasing their inventory levels to address surge demand for
packaging for critical products like packaging for the covid-19 vaccines.
Conclusion
❖ Sealed Air Packaging India(LLP) ltd, a packaging provider company, provides sustainable
packaging options to every industry in the market. They prioritize the quality of their product
❖ Sealed Air has an ambitious goal to reach net zero carbon emissions by 2040. They have been
able to achieve 44% of this goal in 2021. It has been able to reduce the greenhouse gas emission
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by 25%. They have been recognised by CDP for their excellent performance in reducing
❖ Sealed Air, more famously known as bubble wrap, has 6 brands under its belt and uses more than
❖ Globally the company has taken initiatives to be more open about the raw materials they use in
their manufacturing. Their products have QR code on them which when scanned shows the
materials used.
❖ The company is aiming to establish new benchmarks for mitigating environmental and societal
risks such as climate change while generating long-term value for stakeholders and society.
Among the actions Sealed Air is taking to reduce carbon emissions within the company’s
❖ Improving efficiencies that reduce emissions in global operations for the company and its
customers
❖ Contributing to the reduction of waste across the value chain including making
improvements to the shelf life of food and reducing food waste, enhancing transportation
● It is in business to protect. Sealed Air brings together packaging materials, equipment, services,