PROJECT REPORT ON

WAREHOUSING & DISTRIBUTION IN SUPPLY CHAIN

MANAGEMENT

Presented By
Shrishty Nandani
Master Of Vocational in Retail and logistics Management
21430vlm019
2021-2023
Banaras Hindu University
 ACKNOWLEDGEMENT
Thanking is formality and sometimes a necessity,
nevertheless an essential part of any project report.
The list of expressions of thanks no matter how extensive
is always incomplete and inadequate. This
acknowledgement is no exception.
One of the best parts of writing a project report is the
opportunity to thank those who have contributed to it. This
project report has been made possible through direct and
indirect
Co-operation of various people. I especially want to
acknowledge the following people who reviewed the
project. Thanks for the most perspective and helpful
comments.
I sincerely thank Mr.Athrav Srivastva for his support and
valuable guidance in reviewing the project from time to
time. I also express my gratitude to Prof. Vivek Mishra for
his precious help during the entire course.

SHRISHTY NANDANI
 PERFACE
Internship is an integral part of our academic curriculum.
During the training, a student gets an opportunity to
understand the practical aspect of theory. Training makes
the concept clearer.

This project report is the outcome of the training that I

have undergone at SAFEXPRESS PVT. LTD. for the partial
fulfilment of Post graduate in Retail & Logistics
Management.

The topic allotted to me by the company's WAREHOUSING

& DISTRIBUTION IN SUPPLY CHAIN MANAGEMENT

The project emphasises on the warehousing and

distribution in supply chain management done by the
company.

I have tried my best to make a good report.However; no

one can claim perfection in its entiretity.So I apologise for
the discrepancy, if any, crept in.

Preparation of a project requires perseverance, initiatives,

proper guidance and direction. So it is mandatory to take
the aid of various departments
CERTIFICATE
 TABLES OF CONTENTS:

S.NO. CONTENTS

1 INTRODUCTION

1.1 Company Profile

1.2 Type of Business

1.3 Safexpress Services

1.4 Future Expansion

1.5 Company’s Turnover & Achievements

2 Supply Chain Management

2.1 Meaning

2.2 Supply chain management by Robert B. Handfield

2.3 Components of Supply Chain Management

2.4 System of Supply Chain Management

3 Case study; Dabbawalas of lucknow

4 warehousing

5 FQAs

6 conclusion

7 bibliography
INTRODUCTION
Company Profile
Types of Business
Safexpress Services
Future Expansion
Company’s Turnover &
Achievements
 Company Profile
Safexpress –India’s Leading Logistics Company is
renowned for its domain expertise and experienced
manpower in the LSCM sector. Safexpress can best
understand your Logistics and distribution requirements
and can offer the most suitable Logistics model and
solution to you. Safexpress has the largest network
coverage across India traversing over 3,50,000 km. every
day covering over 550 locations through more than 750
routes operating 24 hours a day 365 days a year reaching
these locations through its fleet of 3000 vehicles operating
on. All Safexpress vehicles have all-weather proof
containers for safe transit. Safexpress also operates
through Air to locations directly covered by flights and to
all other locations on a multi modal basis. Safexpress has
Integrated Logistics Management. It is our 3PL Product
that optimises your company’s supply chain. First, we
examine the linkages between your suppliers, producers,
buyers, intermediaries and end users in order to identify
time and cost inefficiencies. Next, we deploy our unique
mix of local know-how, global practices and cutting-edge
technology to provide integrated supply chain solutions.
These range from specific services such as warehouse
management, statutory compliance and invoicing - to an
entire gamut of third party logistics services.

Safexpress works and carries on the philosophy of

'Custodians First Carriers Later’. We sincerely abide by our
corporate philosophy on the subject. Safexpress has an all
risks cover - Carrier’s Risk offer, which unburdens the
 customer of his worries of losses in transit. On minimal
extra charge of Risk Charges, we cover your valuable
shipment against all sorts of transit losses including fire,
flood, damage, accident, shortage, etc.

The Latest of the material handling equipment are used at

Safexpress' hubs to ensure safety and remove Laxity from
material handling. Equipment including hydraulic hand
pallet trucks, dock levellers, trolleys, forklifts' multi level
pallet stackers are used by Safexpress. Chain Pulleys and
Cranes handle consignments which are not possible by
smaller equipment to manoeuvre.

It might not be out of place to mention here all the hubs of

Safexpress are on platform level height. Any Logistician
will understand and appreciate the essentiality and
importance platform level warehouses have for material
handling
 Pawan Jain Chairman and Managing Director Safexpress

Safexpress started its business as a door-to-door service

in 1995 with 4 routes, 9 offices, 12 container mounted
vehicles and 20 employees. Safexpress' door-to-door
services include niche products like DoD and To-Pay
freight.

After one year i.e in 1996 Safexpress opened super hubs at

Delhi, Mumbai and Bangalore. Next year Safexpress
launches Integrated Logistics Services. Our first ILS client
is NIIT, the first international ILS account signed with Hilti
from Europe. Spurred on by a surging domestic economy,
Safexpress extended its fleet to 250 and number of
stations to 290. Safexpress Private Limited emerged as an
independent entity Then in 1998 Safeair and Safebox were
launched, setting a new standard in value added cargo
services.All hubs are connected through web-based
software. In 1999 Having grown by over 300%in 4 years
without compromising quality, Safexpress was awarded
the Golden Peacock Award for quality and innovation in
Logistics Management. In 2000 Pilot runs for GPS started
on 28 routes. Also Safexpress reaches the 350-
 destinations mark and the fleet crosses 1400. Again 2001
Safexpress upgrades and launches a whole lot of features
on www.safexpress.com including ePod, Virtual Cargo and
Privileged Member. In the year 2002,2003 Safexpress was
declared India's "Largest Logistics Service Provider" by
Limca Book of Records. In 2005 Safexpress won the
MICO:Power of We Award for excellent service in logistics.
In the same year Safexpress fleet crossed 3000 mark. Next
year in 2006 Safexpress was awarded by ADC Krone for
providing best logistics services and in the same year
Safexpress bags prestigious RAI's (Retailers Association
of India) Award for Best Logistics Service Provider.

HISTORY

1995
Safexpress launches as a door-to-door service with 4
routes, 9 offices, 12 container mounted vehicles and 20
 employees. Safexpress' door-to-door services include
niche products like DoD and To-Pay freight.
1996
Safexpress opens super hubs at Delhi, Mumbai and
Bangalore.
1997
Safexpress launches Integrated Logistics Services. Our
first ILS client is NIIT, the first international ILS account
signed with Hilti from Europe. Spurred on by a surging
domestic economy, Safexpress extends its Fleet to 250
and number of stations to 290. Safexpress Private Limited
emerged as an independent entity.
1998
Safeair and Safebox are launched, setting a new standard
in value added cargo services. All hubs are connected
through web-based software.
1999
Having grown by over 300% in 4 years without
compromising quality, Safexpress is awarded the Golden
Peacock Award for quality and innovation in Logistics
Management.
2000
Pilot run for GPS starts on 28 routes. Safexpress reaches
the 350-destinations mark and the fleet crosses 1400.
2001
2001
Safexpress upgrades and launches a whole lot of features
on www.safexpress.com including ePod, Virtual Cargo and
Privileged Member.
2002
Safexpress declared India’s “Largest Logistics Service
Provider” By Limca Book of Records 2002.
2003
Safexpress was declared India’s “Largest Logistics Service
Provider” by Limca Book of Records 2003. Mr. Pawan Jain
, CMD , Safexpress , becomes one of the finalists in the
prestigious EnY’s Entrepreneur of the year Award.
2004
Safexpress inaugurated its 500th scheduled delivery
location Safexpress bags the Franchise Awards04 for
excellence in Teamwork.
2005
Safexpress bags the MICO:Power of We Award for
excellent service in logistics Safexpress fleet crosses 3000
mark.
2006 Safexpress awarded by ADC Krone for providing
best logistics Services. Safexpress bags prestigious RAI’s
( Retailers Association of India ) Award for Best Logistics
Service Provider.

MISSION
We shall adopt and internalise a work culture which
demonstrates a "we can we will" attitude to reflect in our
daily responsibilities so as to far exceed our objectives,
consistently striving towards market dominance. We will
create historical landmarks forming a strong edifice for the
future overcoming all obstacles pro-actively as our
personal responsibility and commitment to create delight
for the customer with impeccable personalised services.
VISION
 To be a conscious learning organisation maintaining
flexibility for change so as to provide the most customised
solutions. Striving towards global market share whilst
maintaining dominance in the domestic market through
good hr practice and excellent customer service.
QUALITY
“A quality service relies upon constant customer
interaction and feedback. An immediate response to the
changing environment with predefined business
processes managed effectively and efficiently leads to the
highest output from the lowest input and this is the
strongest measure of quality. The best certification of a
quality organisation is the measurement of the scale of the
smile on the customer's face.

STRENGTHS
Over 550 destinations, spread across 28 states & 7 union
territories.

Warehousing space exceeding 3 million square feet.

Over 3,000 all weather-proof ISO 9002 vehicles.

More than 1000 routes, linked through 41 super hubs &

hubs.

Delivering more than 3 million packages a month.

Traversing more than 5,00,000 kms a day.

 Operating 24 hours a day, 365 days a year

TYPE OF BUSINESS
The Indian Economic Scenario today marks the
emergence of a totally chaotic market with a lot of
competitors, piling stock of products, lowering margins,
taxation changes and more. In the present situation what is
needed to see the blue? The ‘way to higher profits’ comes
from streamlining the channels and outsourcing the
segment of business which is not the core focus or
expertise of the company. One such fragment of the
business model is Supply Chain. Being a medium of
linking product to market, a robust model of supply chain
management ensures a better ‘TAT’ (turn around time), low
inventory holding cost and less of damages. Over the time
discipline of business logistics has advanced from the
warehouse and transportation dock to the boardroom of
leading Global Enterprises. Supply Chain has to be viewed
not only as material and information pipeline but as
integration of logistics with the human factors that need
more attention to be paid to understanding, creating and
managing demand more effectively. Safexpress works on
the Value Chain concept using a framework for examining
linkages between suppliers, producers, buyers,
intermediaries and end users. Safexpress, India’s leading
logistics company offers Integrated Logistics
Management, Express, Air, Multimodal, Door-to-Door, time
definite delivery and consultancy services. The company
also offers e-logistics and customised solutions for
e-business
 SAFEXPRESS SERVICES

EXPRESS
Safexpress service is an express service which involves
movement of cargo in all weather proof sealed containers
on feeder and express routes. The service is time definite
with a published transit schedule covering more than 550
destinations nation wide and provides the flexibility for
surface, air and multi-modal connectivity with a wide reach
associated with Indian airlines and air taxi operators such
as jet airways, Sahara etc.

DRAFT-ON-DELIVERY
Draft on delivery is an unparalleled value-added service
wherein the seller can dispatch goods through Safexpress
to the buyer and be assured that the delivery would take
place only when the draft has been collected. In the
Safexpress DOD system pre-alerts are sent to the
consignee to allow reasonable time for the draft to be
made, thus meeting the desired objective of express
transit with the amount ready for collection.

ALL RISK COVER

The management of Safexpress hereby undertakes and
declares that: “The company would redeem the value of
the loss in the uneventful case of any shortage or damage
to the consignment whilst in the custody of Safexpress,
subject to the risk charge having been paid by the sender
or the recipient as per the company policy. The amount
corresponding to the loss as declared would be paid by
the company to the sender or the recipient as required
without waiting for any request for the same.”
 SAFEBOX
The safebox comes in two convenient sizes of 17” x 17” x
12” and 16” x 12” x 9” easily accommodating up to 20 & 10
kgs respectively of your cargo. The robust design is
further reinforced with internal insulation for safety of your
cargo. So you save on packaging cost and for a nominal
amount it is ready for delivery with an auto insurance up to
rs. 5000 absolutely free of cost.

SAFEAIR
To ensure that time sensitive cargo reaches the
destination through a faster mode meeting all your
requirements for the time definite deliveries. Safeair
connects your cargo through airlines, at os and uses the
services for morning and evening flights to provide a wide
variety of connectivity to suit different market cutoffs.

ILM
Safexpress works on the value chain concept using a
framework for examining linkages between suppliers,
producers, buyers, intermediaries & end users. Safexpress
ensures the success of the entire chain, marrying local
knowhow with the best global practices, technology &
perspective

CONSULTING
Safexpress offers value added services beyond physical
operations in the form of logistics consultancy covering a
wide spectrum of the Indian economy. The company plays
a pivotal role in guiding diverse market segments on
existing and recommended logistics models with various
simulation modules to map transactions using historical
data and providing befitting supply chain solutions.

HOW FAST IT WORKS

Cargo from PATNA to LUCKNOW booked on Saturday,

december 06, 2022 will travel a distance of 502 kms./273
miles check posts through which your cargo will pass

documents required 2 Copies of Consignor's Invoice with

ST & CST No.
Printed permits / forms required VAT FORM-505/VAT
FORM-515 octroi applicability
NO entry tax applicability
YES subject to nature of transaction your virtual cargo
would be delivered on

by Express mode
Thursday, december 10, 2022
by Safeair mode
thursday, december 08, 2022
 FUTURE EXPANSION

Logistics services provider Safexpress plans to invest Rs

800-1,000 crore (Rs 8-10 billion) in five years to expand its
operations on the back of the boom in manufacturing and
retail activities in the country. As a result of the expansion,
the company's turnover is likely to touch Rs 1,000 crore
(Rs 10 billion) by 2010. The company expects to fund its
expansion through internal accruals and debt as it claims
to have strong bottomline and cash reserves. The
privately-held Safexpress has been growing at 35 per cent
and posted a turnover of Rs 450 crore (Rs 4.5 billion) in
2006-07. The company expects similar growth this year as
well, Pawan Jain, chairman and managing director, told
reporters at the CII Logistics 2007 summit in Chennai.
Safexpress intends to set up logistics parks comprising
warehouses, vendor management services, raw material
management and finished products storages at 32
locations across the country. Each park will come up on an
area of 25-30 acres. A group company, which is into the
realty business, has already completed around 70 per cent
of the land acquisition. The company is also establishing a
3 lakh sq ft logistics park near Chennai at an investment of
Rs 35 crore (Rs 350 million). It already operates a 80,000 sq
ft warehouse in Chennai. Through the expansion
programme, the warehousing capacity of the company will
grow to 10 million sq ft in the next three years from the
current 3 million sq ft. The company was planning to
strengthen its presence in the air cargo segment by taking
three Boeing-737 cargo aircraft on lease. These would
cover five cities in the country by the next financial year,
according to Jain. Safexpress has also placed an order for
380 trucks to add to its current fleet of 3,000 vehicles. The
company doesn't own the vehicles, but hires them through
its network of 59 vendors.

HEALTHCARE SEGMENT
is one of Safexpress's special focus areas which
contributes 16 percent of the revenue. With more than a
100 percent customer retention rate Safexpress has always
given due importance to the demands of their customers.
Aiming at expansion, they are investing heavily in
infrastructure development and will soon be coming up
with 32 logistics parks and will be adding seven million
square feet of warehousing capacity. The investment is
planned for a total of Rs 1000 crore in infrastructural
development in the next three years. Pawan Jain,
Chairman and Managing Director, Safexpress, says, "We
have plans for expanding our specialised logistics product
range. This range would be specifically designed for the
healthcare industry after thoroughly analysing its needs.
Apart from offering our multimodal services, we will be
providing single window solutions and, along with
managing the logistics channel end-to-end from
distribution channels to pharmacy or patient level. We
would be offering specialised logistics solutions to the
rural healthcare, customised pharma and cold warehouses
pan-India, packaging solutions, implementing bar-coding
to prevent spurious drugs and offering solutions as per
regulatory norms like GDP, US FDA, MHRA and GCCDP."
With a view to provide customised logistics services for
the booming retail industry Safexpress also sponsored the
ninth Marketing and Retail Conclave. The conference saw
the presence of leading retail players from all across the
 world. Vineet Kanujia, General Manager Marketing,
Safexpress said, "The idea behind sponsoring this
conclave was to bring the retail and logistics industries
closer. Safexpress has been at the helm in harnessing and
synergising the needs of the retail industry for the growth
of the economy. We have successfully managed to gather
the required inputs and the coming period will see us roll
out these plans."

TURNOVER

The company hopes to double its turnover to Rs 1,000

crore by 2010, he told reporters on the sidelines of CII
Logistics 2007. The privately-held company has been
growing at 35 per cent and posted a turnover of Rs 600
crore in 2007-08. It expects a similar growth this year, Mr
Jain said. In three years, Safexpress will add 7 million sq ft
of space to its existing 3 million sq ft. It will set up logistics
parks comprising warehouses, vendor management, raw
material management, finished products storages, and
also distribute consignments. These parks will come up in
32 locations across the country, he said.

EMPLOYEES TURNOVER

At present there are 2500 employees in safexpress but

they are planning to expand their number of employees in
future.
ACHIEVEMENTS

Safexpress wins ‘International Business Excellence Award

2008 Safexpress CMD, Mr. Pawan Jain conferred with the
‘Bharat Gaurav Puraskar’ by the Institute of Economic
Studies Mumbai, September 4, 2008: ‘Logistics Guru’ and
CMD, Safexpress, Mr. Pawan Jain was conferred with the
‘Bharat Gaurav Puraskar’ for the ‘Best Business Leader’ by
the Institute of Economic Studies (IES) this week. His
entrepreneurship venture, Safexpress Pvt. Ltd. which has
grown into one of the leading logistics and supply chain
management companies in India was also awarded the
‘International Business Excellence Award’ for the ‘Best
Business Enterprise’ at the same platform organised at
Hotel Grand Sukhumvit By Sofitel at Bangkok, Thailand.
The prestigious award was presented in a ceremony
preceded by a seminar on ‘The Global Indians’. The award
was given in recognition of the achievements of Mr. Pawan
Jain with respect to bringing innovation, excellence and
quality in the field of Logistics. The award was presented
to Mr. Jain by the former Deputy Prime Minister of
Thailand, Dr. Korn Dabbaransi. On this grand occasion,
‘Logistics Guru’, Mr. Pawan Jain, CMD, Safexpress said
“Both these prestigious awards mean a lot to us. It is
indeed a proud moment for everyone associated with
Brand Safexpress. We are happy that our relentless efforts
have been recognized in the industry. We have always
ensured quality, security and timely services and promise
to continue in delivering the best. We are humbled by this
adulation.”
This award ceremony was a platform for honouring Indian
entrepreneurs and enterprises, who have been
 consistently demonstrating Business Excellence as per
International standards.
IES is the most esteemed economic institution of the
country. It seeks to provide expert advice on the various
facets of the Indian economy by way of in-depth study and
research. IES has been actively involved in providing
information to its members on the critical developments
taking place on the various economic fronts. In the present
day, it has come to epitomise excellence in the economic
sphere. About Safexpress- Safexpress is India’s No. 1
Supply Chain and Logistics Company. The company offers
the best and the most innovative solutions for all SCM and
Logistics requirements. Their services are totally
customised as per the demand of different segments of the
business industry. Courtesy of their wide range of quality
services, Safexpress has set a benchmark in SCM
standards and redefined the functioning of the Indian
Logistics Industry. Growing at a phenomenal rate of over
30 % in the last couple of years, Safexpress achieved an
annual turnover of Rs. 500 crores in the FY 2006-07. The
company is targeting a turnover of Rs. 1000 crores by the
year 2010.
 CHAPTER-2
SUPPLY CHAIN MANAGEMENT
Meaning
Components of Supply Chain
Management
Supply Chain Management: Robert B.
Handfield System of Supply Chain
Management
Processes of Supply Chain
management
 SUPPLY CHAIN MANAGEMENT
Since the beginning of the 1990s, there has been a
paradigm change in the business scenario, mainly due to
the liberalisation policy of various economies all over the
world, and revolutionary innovation in the field of science
and technology. Particularly, information technology and
communication infrastructure has resulted in a continuous
acceleration in the magnitude competition. To sustain
themselves in such an erratic environment, firms need to
have door competency and productivity. That is why firms
are perceived to have more systemized activities related to
movement and storage of goods so as to make them
available at a short notice with the lower inventory level.
For instance, Godrej locks – a division of Godrej & Boyce
Company – has to reduce its order to delivery cycle from
three weeks to only three days. Computers giant Hewlett
Packard has cut the duration of its cycle to deliver to
customers in India from the US by one third, from 37 days,
to 10 days. All this happened because it was higher and
systematic. Supply Chain Management the new and more
Indian companies are jumping onto supply chain
management bandwagons for the competitive edge.
Supply Chain Management is a business system of
enterprise strategies, business processes and information
technologies for improving the planning, execution and
collaboration of material flows, information flows, financial
flows and workforce flows in the supply chain. SCM is
supported by modular software applications that integrate.
Activities across organisations, from demand forecasting,
product planning, parts purchasing, inventory control,
manufacturing, product assembly to product distribution.
 DEFINITION
Supply Chain Management is the process of planning,
implementing, and controlling the operations of the supply
chain as efficiently as possible. Supply Chain Management
spans all movement and storage of raw materials,
work-in-process inventory, and finished goods from
point-of-origin to point-of-consumption. The definition one
American professional association put forward is that
Supply Chain Management encompasses the planning and
management of all activities involved in sourcing,
procurement, conversion, and logistics management
activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers and
customers. In essence, Supply Chain Management
integrates supply and demand management within and
across companies.

Source: Introduction to Supply Chain Management by

Robert B. Handfield, Ernest.
Customers: Customers are the sole purpose of the
existence of any business. customers interact with
retailers or supermarkets. Website or telemarketing firm
can also act as an interface for the customer. Retailers
work towards fulfilling the demand, either through
inventory or through placing fresh orders with preceding
links in the supply chain. In some case the customers
bypass the traditional supply chain and interact directly
with the manufacturers for example in case of online
purchase of computer from Dell Computers, customers
directly place an order with a manufacturer i.e. Dell.
 Retailers/Distributors: Retailers interact with distributors
or manufacturers directly to fulfil the demand created by
their respective customers. Retailer places an order with
preceding link in the supply chain to replenish its
depleting inventories. Typically the orders are initiated by
the retailers but, in some cases the manufacturers monitor
supermarket’ stocks and automatically initiate reorders,
Wal-Mart and P&G using continuous replenishment
program is one example.

Manufacturers: Retailers or distributors often place their

orders with manufactures after gauging the demand.
Based on the demand from retailers/distributors
manufacturers decide their production targets and
schedules. Manufacturers usually follow either push based
strategy or pull based strategy. In push based strategy
production decisions are based on long-term forecasts
thus making it more difficult for the manufacturers to
adjust their production schedules.

In a pull-based strategy production is driven by customer

demand rather than forecast thus allowing for greater
flexibility in the production. Information flow and
technologies like Point-of-Sales ( POS ) data play a
significant role in this strategy.
Suppliers: Manufactures interact with suppliers to make
sure that they have all the available materials for
manufacturing. Raw material orders placed with suppliers
are more precisely determined as they are based on
production schedule. But the question arises is the
production schedule reflective of the correct demand?
Manufacturers work in close coordination with suppliers in
order to reduce high inventories. Just in time is one such
 technique, which manufacturers use to achieve this
objective.

REVERSE SUPPLY CHAIN

Reverse Logistics is the process of planning,
implementing and controlling the efficient, effective
inbound flow and storage of secondary goods and related
information opposite to the traditional supply chain
direction for the purpose of recovering value or proper
disposal. Reverse Logistics is also referred to as
“Aftermarket Customer Services''. In other words, anytime
money is taken from a company’s Warranty Reserve or
Service Logistics budget, that is a Reverse Logistics
Operation.

COMPONENTS OF SUPPLY CHAIN MANAGEMENT

Our Global Supply Chain Management practice focuses on
four key solution areas:-
Adaptive Execution. We transition your supply chain into a
high speed, low-cost, rapid-response engine to increase
visibility and response from procurement to fulfilment and
replenishment.
Supply Management. Our technologies and collaborative
business processes improve sourcing, procurement,
contracting, purchasing, invoicing and analysis.
Customer-Supply Synchronisation. Integrate SCM with
marketing, sales and customer management and you’ll see
high availability and low costs that can increase sales and
eliminate rush shipments and back-orders. Securing
Supply Chains. Comply with security requirements and
speed container inspections with solutions that offer
tracking, analysis, alert capabilities, and process and
policy documentation.
 A SYSTEM OF SUPPLY CHAIN MANAGEMENT
Supply Chain Management is a social or soft system which
has goals, components, processes and boundaries.
Goals of SCM.
To reduce inventory cost.
To increase sales
To improve the coordination and the collaboration with
suppliers, manufacturers and distributors.

Components of SCM System -

The components of a supply Chain System consist of 1.
Supply Chain Software and Hardware,
2. Supply Chain Business processes and Users of SCM
System.
SCM Software and Hardware – The core of an SCM System
is SCM software. Supply Chain Software is a module based
application. Each software module automates business
activities of a functional area in the Supply Chain.

UNIX is the most common operating system for running

SCM software.

Business Processes – Business processes of supply

chain includes supply chain planning, execution and
collaboration and operational control.

Users – The users of SCM systems are workers of supply

chain participants at all levels.

PROCESSES OF SUPPLY CHAIN MANAGEMENT

 Demand Planning and Forecasting - A critical success
factor to supply chain management is accurate demand
forecasting. Supply chain software systems utilise
sophisticated mathematical models for predicting future
demand from historical data.
Procurement - This is the process of choosing the
suppliers that will deliver the goods and services you need
to manufacture or assemble your products or create your
services. It involves price negotiation, receiving, and
verifying the shipments.

Manufacturing and Assembly - Raw components are

assembled into final products or raw materials are
manufactured into finished goods.
Distribution - This is the process of delivering your
products or services to consumers. Distribution involves
warehousing, delivering, invoicing and payment collection.
Return - Return and refund are important parts and also
the problem parts of supply chain management.

Boundary of the SCM systems -

The boundary of a SCM system is the boundary of
extended enterprise which includes the company,
suppliers, partner, distributors and customers.
 CHAPTER 4
CASE STUDY
DABBAWALAS OF LUCKNOW

CASE STUDY
6 Sigma Dabbawalas of LUCKNOW, And their Operations
ManagementAn Analysis.

The ubiquitous Dabbawalas also known as tiffin walas who

provide a lunch delivery service in Mumbai have been in
the business over 115 years. Their mode of operations
have been studied by global management gurus and
business schools. In 1988, Forbes magazine conducted a
study and rated them a Sigma 6 organisation i.e. a 99,9999
per cent correctness – which means if the organisation
delivers six million tiffins, it will not misplace more than
one or just one tiffin in six million transactions.
Considering the unique achievement of Dabbawalas in the
field of their operations, this study has been undertaken to
assess their group efforts and managerial efficiency. The
main objectives of this subject are :
1) To examine how the Dabbawalas operate;
2) To study howDabbawalas of Mumbai perform an
amazing role in procurement and distribution of tiffins to
their clients from which one can learn many critical issues
of supply chain, distribution and logistics management.
This subject mainly dwells on the examination of their
operations and achievement of almost zero fault
performance including their problems and prospects in
this changing environment of their business, they work as
a team to achieve a common goal with a cent percent
accuracy, and
 3) To explore the problems and prospects of the
Dabbawalas’s services in the light of the changing
environment.

Their Glorious Past Performances:

The origin of the Dabbawala’s lunch delivery services
dates back to the year 1890. Mahadeo Havaji Bachche, a
migrant from lucknow district started this lunch delivery
service. At that time, people from different states and from
different communities migrated to Mumbai for work. At the
work place there were no canteens or fast food centres
and they did not bring their lunch from home. Besides,
different communities had different food habits, tastes and
preferences which could only be satisfied by a homemade
meal. Recognizing the need, Mahadeo started this lunch
delivery service. In this business, Mahadeo recruited
young men from the villages neighbouring lucknow who
had no formal education or technical efficiency to get work
in the city. There were 100 Dabbawalas. In 1950,
Dabbawalas were delivering 1,00,000 lunches per day.
After the death of Mahadeo they became organised in 1954
and formed Nutan lucknow Tiffin Box Suppliers Charity
Trust. The trust had branch offices in different parts of
Lucknow such as amausi, krishna nagar, hazratganj etc. In
2005, 5000 Dabbawalas delivered around 2,00,000 lunches
per day.
Levels of Management:
The trust is a co-operative body having three levels of
management, viz.
1) The Governing Council, its President, Secretary – Top
level,
2) Mukabams ( Team leaders or supervision ) – Middle
level,
 3) Dabbawalas – Lower level.

The Governing Council ( also called as Panch Committee )

holds meetings on the 15th day of every month. Mukadams
and Dabbawalas are entitled to attend the meetings. At
these meetings, Dabbawalas discussed their problems and
business policies. The trust collected Rs. 15 p.m. for each
member to maintain a welfare fund. The trust provides
various services to its members, including loan facilities
for emergencies, educational expenses for children, health
care etc. from this welfare fund. The Dabbawalas are
organised to supervise sorting Dabbas ( tiffin box ), to
keep records of payment, to settle disputes, to search new
customers and train new Daddawalas. Each group is
financially independent but works together in the delivery
process. Each group serves its own customers without
hampering the interests of others. Now the Dabbawalas are
charging customers Rs. 250 to Rs. 300 p.m. for their
services. Total monthly collection is shared equally among
the members of the group. Each Dabbawala receives Rs.
5,000 to Rs. 6,000 after meeting all expenses like railway
monthly ticket, rent for handcarts, crates etc. Newcomers
who want to become Dabbawala are initially hired on a
salary, after evaluating their performance they are offered
membership (shareholders) of the trust and assigned to
one of the groups. Each Dabbawala is guaranteed to
receive a monthly income and employment for life. As
there is no retirement age, he may work as long as he is
physically fit. To become a profit sharing member of the
trust, new Dabbawalas need to pay a certain amount to the
trust. This was Rs. 30,000 in 2003.

How they operate and work as a team :

 This service is available on every working day and
whenever the local trains run in Lucknow because it is
their primary mode of transportation. The Dabbawalas
deliver home-cooked meals to individuals (irrespective of
their caste, creed or religion) at their working places
(offices/factories) and return empty boxes to customer’s
houses or caterers. Every customer who avails himself of
the service is given an aluminium container (called
Dabba-contains 2 or 3 containers, often carrying rice,
chapattis, curry and salad) with appropriate code painted
on the lid. The Dabbas change hands at least four or five
times before they reach their destinations during the
delivery process. The process runs as follows: A
Dabbawala picks up the tiffin box with cooked food from a
house or caterer early morning (generally between 8:30
a.m. and 10:30 a.m.), then transports it by cycle or
handcart to the nearest railway station. Then he hands it
over to a Mukadam who sorts it and arranges them in
crates or trays, according to the destination. Another
Dabbawala then transports it in the suburban train vendor
compartment to the railway station nearest to its
destination where another picks it up and delivers it to the
ultimate recipient by 12:30 p.m. After lunch, the Dabbas are
picked up and returned to the customer’s house or caterer
in a reverse operation. The food and the Dabba both
belong to the customer. Even housewives occasionally
send messages to their husbands in these Dabbas. This
delivery system has been compared to a relay race. The
Dabbawalas have developed their unique coding system.
The codes help each Dabbawala to identify and fulfil his
responsibility. These codes are understood by the
Dabbawalas and no one else. The code is painted on the
lid of the Dabba, which indicates the originating address &
station and the destination station & address. Their coding
system is very interesting. They use colours and code
markings to ensure faultless delivery. They use both
alphabets and numbers to identify Dabbawala, station,
building and floor. For example, if the code on a Dabba is
“P-BO-10 15/A/11”, then P identifies the name of the
Dabbawala, BO indicates Borivali (area) where the Dabba
has to be collected from, 10 represents the area, Nariman
point, where the Dabba has to be delivered and 15/A/11
stands for 15th building, 11th floor.
Dabbawala’s ability to successfully run the service in a
crowded city like Lucknow could be attributed to its
geography and local train service. The trains run every day
in a year and there is very rarely any interruption in the
service. During the monsoon, due to heavy rain, when the
rail tracks would get flooded then the service is disturbed.
Raghunath Medge, President of the trust said, “Mumbai’s
geography makes it unique, it is a longish city where
residences are in the north and offices in the south, so it
makes our work simple. According to their version, they
use the cheap public transport system which is
advantageous to them. Several groups are involved in this
service, but their teamwork is unique and delivery almost
flawless due to their effective coordination. Even there is
no mixing of vegetarian and non vegetarian Baddas on the
same bicycle. Raghunath Medge claimed “ We generally
make one mistake in two months. We can’t afford to make
mistakes too often or else we will be out of business. And
our employees understand this reality very well so they are
always very caution.” Problems & Prospects : The trust
faces the cut-throat competition from the growth of fast
food centres like Pizza Hut, Mac Donald’s etc. while there
are thousands of die-hard customers, rapid urbanisation,
 increasing personal transportation and availability of
different kinds of fast food have drawn a good chunk of the
younger generation away from the home made food. But
there is an increasing number of people who are health
conscious and feel that home cooked food suits their
stomach and health. Even some customers now send
water along with their tiffins. Knowing this very issue the
trust does not bother about the competition. Today, the
Dabbawala delivers them to offices. But Medge said that
food from caterers is still a small segment of the total
operation. Most people want to eat homemade food in the
offices without the bother of having to carry a
cumbersome tiffin box. Six Sigma quality rating helps the
organisation streamline their delivery systems, eliminate
errors and achieve a cent percent accuracy. Around 8000
Dabbawalas deliver about 5,00,000 tiffin boxes to factories
and offices across lucknow with high labour intensive and
with almost zero technology inputs. But they receive
international recognition after 115 years of glorious
service. Every year their business grows by 25,000 to
30,000 tiffin boxes. They lose a few customers too each
year but are more than compensated with the addition.
Actually they grow annually by about 10%. Till the time
people will feel hungry their business will keep growing.
They have started advertising on Dabbas by putting
stickers on them. This brings in extra income. Mumbai
Dabbawalas deliver mainly during day time. They are not
night birds. But India shifts to a 24 Hours X 7 Days work
culture, the tiffin boxes' network would also work under
the moon and stars.
 Conclusion of Case Study :-
The concept of ‘Dabbawala’ comes into picture in one of
India’s biggest and busiest cities – where people can enjoy
the fresh homemade lunch every day. What a wonderful
service they provide. It is not just a service but a vocation.
Their main aim is customer satisfaction. The trust shows
how these illiterate or semi literate Dabbawalas have
mastered the art of logistics management, supply chain
management, customer service, just-in-time management,
teamwork and problem solving. People cannot believe that
uneducated people can provide such and efficient service.
Even people of foreign countries (like U.K., Italy etc.) are
amazed that uneducated Dabbawalas can carry out such a
type of business so accurately. Actually the uneducated
have an ability to memorise and retain more as opposed to
educated who are used to writing down everything. So
they claim that “our head is our computer and Gandhi cap
in the computer cover to protect it from the sun or rain.”
The white-capped, white-shirted Dabbawalas shot to the
limelight when they were awarded the six sigma rating, but
it was Prince Charles’ meeting with them in Mumbai in
November,2003 that really helped them. He was the first
celebrity who visited them. R. Megde said “ Many people
talk about us, but Prince Charles was the first famous
person who met us. He encouraged us. He is our friend.
Hard work and sincerity of Dabbawalas are the two main
factors to reach such levels of efficiency with such an
untrained workforce. They got a six sigma rating of highest
operational efficiency without using any paperwork or
computers. Thanks to their personal as well as group
efficiency and dedication to their vocation.
 CHAPTER-4 WAREHOUSING

WAREHOUSING
A warehouse is a commercial building for storage of
goods. Warehouses are used by manufacturers, importers,
exporters, wholesalers, transport businesses, customs,
etc. They are usually large plain buildings in industrial
areas of cities and towns. They come equipped with
loading docks to load and unload trucks; or sometimes are
loaded directly from railways, airports, or seaports. They
also often have cranes and forklifts for moving goods,
which are usually placed on ISO standard pallets loaded
into pallet racks. Some warehouses are completely
automated, with no workers working inside. The pallets
and product are moved with a system of automated
conveyors and automated storage and retrieval machines
coordinated by programmable logic controllers and
computers running logistics automation software. These
systems are often installed in refrigerated warehouses
where temperatures are kept very cold to keep the product
from spoiling, and also where land is expensive, as
automated storage systems can use vertical space
efficiently. These high-bay storage areas are often more
than 10 meters high, with some over 20 meters high. The
direction and tracking of materials in the warehouse is
coordinated by the WMS, or warehouse management
system, a database driven computer program. The WMS is
used by logistics personnel to improve the efficiency of
the warehouse by directing putaways and to maintain
accuracy in inventory by recording warehouse
transactions. For a warehouse to function efficiently, the
 facility must be properly slotted. Effective slotting
addresses which storage medium a product will be picked
from (pallet rack or carton flow), and how they will be
picked (pick-to-light, pick-to-voice or pick-to-paper). With a
proper slotting plan, a warehouse can improve its
inventory rotation requirements-- such as FIFO (First In
First Out) and LIFO (Last In First Out) -- control labour
costs and increase productivity.

Traditional warehousing has been declining since the last

decades of the 20th century with the gradual introduction
of Just In Time (JIT) techniques designed to improve the
return on investment of a business by reducing in-process
inventory. The JIT system promotes the delivery of product
directly from the factory to the retail merchant or from
parts manufacturers directly to a large scale factory such
as an automobile assembly plant, without the use of
warehouses. However, with the gradual implementation of
offshore outsourcing and offshoring in about the same
time period, the distance between the manufacturer and
the retailer (or the parts manufacturer and the industrial
plant) grew considerably in many domains, necessitating
at least one warehouse per country or per region in any
typical supply chain for a given range of products. Recent
developments in marketing have also led to the
development of warehouse-style retail stores with
extremely high ceilings where decorative shelving is
replaced by tall heavy duty industrial racks, with the items
ready for sale being placed in the bottom parts of the racks
and the crated or palletized and wrapped inventory items
being usually placed in the top parts. In this way the same
building is used both as a retail store and a warehouse.
Modern warehouses are also used at large by
 exporters/manufacturers as a point of developing retail
outlets in a particular region or country. This concept
reduces the end cost of the product to the consumer and
thus enhances the production sale ratio. Warehousing is
an age-old concept which can be used as a sharp tool by
original manufacturers to reach out directly to consumers
leaving aside or bypassing importers or any other middle
agencies or person.
Internet impact
The internet has had an influence on warehouses too.
Internet based stores do not require physical points of
selling. However, warehouses are still required to store the
goods. Since direct contact with customers means many
small orders, this is a different situation where stores
would be ordering large numbers of goods. Simply said,
warehouses change from shipping large quantities of
goods to shipping large numbers of small quantities of
goods. Having a large and complex supply chain
containing many warehouses may be costly. Sometimes, it
is beneficial to have one large warehouse per continent.
This warehouse should be located at a central point, where
transport is available to all other destinations. At these
continental hubs, goods have to be customised for
different countries. For example, goods get a price ticket in
the language of the country where it will go. Making small
adjustments to goods at a warehouse is called value added
services.
Types of Warehouse Storage Systems Some of the most
common types of warehouse storage systems are:
Pallet rack: Including selective, drive-in, drive-thru,
double-deep, pushback, and gravity flow.
Mezzanine: Including structural rolls formed, rack
supported, and shelf supported.
 Cantilever Rack: Including structural and roll formed.

Industrial Shelving: Including metal, steel, wire, and

catwalk. Automated Storage and Retrieval System (ASRS):
Including vertical carousels, vertical lift modules,
horizontal carousels, robotics, mini loads, and compact
3D.

FQAs
Why Safexpress?
Safexpress –India’s Leading Logistics Company is
renowned for its domain expertise and experienced
manpower in the LSCM sector. Safexpress can best
understand your Logistics and distribution requirements
and can offer the most suitable Logistics model and
solution to you. Safexpress has the largest network
coverage across India traversing over 3,50,000 km. every
day covering over 550 locations through more than 750
routes operating 24 hours a day 365 days a year .
What is the Network Strength of Safexpress?
Safexpress-India’s leading Logistics Company, has more
than 550 Locations across India in its network. Safexpress
reaches these locations through its fleet of 3000 vehicles
operating on more than 1000 routes, 24 hours a day 365
days a year. All Safexpress vehicles have all-weather proof
containers for safe transit. Safexpress also operates
through Air to locations directly covered by flights and to
all other locations on a multi modal basis.
Will Safexpress cater to my destination?
Safexpress-India’s Leading Logistics Company, has a
network of more than 550 Locations across India. To check
whether Safexpress caters to your destination, please
check our 'Contact Us' page and click on Network. How do
I Contact Safexpress for Pick-up? Safexpress-India’s
Leading Logistics Company, has offices across all
industrial and commercial towns and cities of India. To
contact any one of them, please check our 'Contact Us'
page and click on your State to identify your city of origin,
or click on the first alphabet of your destination to see a
list of destinations starting with the alphabet. Across India
you could also contact our Toll Free phone 1800 113 113 &
you can also mail Corporate Customer Services Desk at
safexpress@safexpress.com

Does Safexpress handle both Domestic and International

Consignments?
Safexpress, India’s Leading Logistics Company today
handles only Domestic cargo.
What are Safexpress Services?
To view our entire bouquet of services in Logistics and
Supply Chain, please go to our 'Services' page. Here, you
will find all our Services listed with complete explanations.
For further queries or more customised solutions, Please
mail us at safexpress@safexpress.com or call us toll free
1800 113 113.
What is ILM?
Integrated Logistics Management is our 3PL Product that
optimises your company’s supply chain. First, we examine
the linkages between your suppliers, producers, buyers,
intermediaries and end users in order to identify time and
cost inefficiencies. Next, we deploy our unique mix of local
know-how, global practices and cutting-edge technology to
provide integrated supply chain solutions. These range
from specific services such as warehouse management,
 statutory compliance and invoicing - to an entire gamut of
third party logistics services.
Does Safexpress operate in Containers only?
All the fleet of Safexpress is all-weather proof containers
meeting global quality standards. Unless specifically
required for a customised project Safexpress does not
carry in open body vehicles.
What does Safexpress Carry?
Almost every product manufactured, imported or sold in
India can fall under our purview which requires us to reach
its destination in time, safely and conveniently. Barring
goods contraband in nature, explosives, Cash, jewellery,
and inflammable material... Broadly major areas of
business for Safexpress include IT hardware, Ready Made
Garments, Pharmaceuticals, Electrical and Electronic
goods, Automobile Components & Spares, Fabric and
Cloth, FMCG, and Non-Perishable Food Products among
many other products belonging to diverse market
segments. What about Packaging? Safexpress principally
does not handle packaging themselves. We can consult
and provide needful help and assistance but directly might
not pack. We have SAFEBOX for our clients that comes in
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10kgs of air cargo. The robust design of the Safebox is
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Risks? Safexpress works and carries on the philosophy of
'Custodians First Carriers Later’. We sincerely abide by our
corporate philosophy on the subject. Safexpress has an all
risks cover - Carrier’s Risk offer, which unburdens the
 customer of his worries of losses in transit. On minimal
extra charge of Risk Charges, we cover your valuable
shipment against all sorts of transit losses including fire,
flood, damage, accident, shortage, etc. For more details
please call our toll free phone 1800 113 113 or mail us at
safexpress@safexprress.com

Does Safexpress offer CFA Services? Yes, Safexpress

–India’s leading logistics company has a special product to
offer. Corporate CFA services under- ILM. Our corporate
CFA is a very customised and scalable solution for Clients
who require a variety of CFA services at one/many
locations. Services range from sourcing, Warehousing
,Inventory Management, Despatch, Delivery and many
other modules from which a customer can pick his
requirements. Most importantly our Turnaround Time (TAT)
to set-up the infrastructure is very low and also it is cost
effective to the entire Supply Chain.
What about Warehousing Risks?
As mentioned in the previous answer, Safexpress
Solution–ILM takes care of everything, including
warehousing insurance. If the customer requires it, the
customer gets it. What kind of Material Handling
Equipment are used at Safexpress' Hubs? The Latest of
the material handling equipment are used at Safexpress'
hubs to ensure safety and remove Laxity from material
handling. Equipment including hydraulic hand pallet
trucks, dock levellers, trolleys, forklifts' multi level pallet
stackers are used by Safexpress. Chain Pulleys and
Cranes handle consignments which are not possible by
smaller equipment to manoeuvre. It might not be out of
place to mention here all the hubs of Safexpress are on
platform level height. Any Logistician will understand and
 appreciate the essentiality and importance platform level
warehouses have for material handling. How do I locate
my material? Safexpress.com offers you online tracking of
your consignment. Simply punch in your waybill number
and the site informs you the status of your Consignments
immediately. You may download a copy of epod (Electronic
Proof of Delivery) for your reference.
What are the statutory obligations required for
shipments? Statutory obligations in India vary from state
to state. For a check on obligations like documents,
form/permits, octroi /entry tax applicability - please visit
our online logistics planning tool- Virtual Cargo. By simply
selecting your booking origin and destination along with
the planned date of despatch, it tells you all the obligations
involved. For further clarity, please call us toll free 1800
113 113 and the customer services desk will help you. You
can also mail us at safexpress@safexpress.com
What is virtual cargo? Virtual Cargo is a Safexpress' gift to
Logisticians. It’s an online logistics distribution planning
tool for clients. By Simply selecting your origin and
destination along with planned date of despatch, It tells
you all the obligations involved like number of copies of
documents /invoice required, forms or permits required,
octroi or entry tax applicability. It confirms you the
expected day/date of arrival at destination by various
modes, so as to plan a pre/postponement of your despatch
to realign with your supply chain. It also confirms the
distance your cargo will travel and the check posts it’ll
pass through in its transit.
How can I become a Privileged Member?
Safexpress offers special attention and offers value added
services to its large volume customers. For these
customers our online lounge has been named as
 Privileged Members. Through a login/password access a
Privileged Member gets access to a host of services
including Multiple Waybill Tracking, Tracking by Invoice,
various MIS reports on Despatch and Receipt of
consignments, Service Performance Analysis of
Safexpress month on month. We provide direct access for
our Privileged Member to his account manager from
safexpress to respond to direct issues. A host of other
add-on and special offers are being added for our
Privileged Members. 50 Downloaded by Shrishty
Yaduvanshi (shris.singhaniya01@gmail.com)
lOMoARcPSD|23577658
What about Reverse Logistics?
Safexpress has special arrangements to offer project
based Reverse Logistics assignments. For detailed
discussions, please call us toll free 1800 113 113 or send
us mail on safexpress@safexpress.com Does Safexpress
carry Liquid Cargo? Safexpress principally does not carry
liquid cargo on consolidation basis. However, items like
pharmaceuticals, adhesives are handled by Safexpress.
For special projects please speak with our Customer
Service Officers on toll free number 1800 113 113 or email
us at safexpress@safexpress.com What is Safexpress' cut
off time for pick-ups? Cut off time for pick-ups varies from
origin to origin depending on connections. Please check
with our customer service officer at the origin station for
the exact cut off time for pick up and he/she will confirm it
to you. Our toll free number is 1800 113 113.
Does Safexpress deliver on a Sunday? If yes, are there any
extra charges?
Safexpress operates its operations function 24 hrs a day
365 days a year. Safexpress not only offers delivery
services on Sunday but also does not charge anything
extra for Sunday delivery. For all other queries / questions,
please mail us at safexpress@safexpress.com
 CHAPTER-6 CONCLUSION

CONCLUSION
Today we are essentially operating in a global market. In this
era of crumbling economic barriers, the customer reigns
supreme. The successful enterprises in this fiercely
competitive economy are those which are able to ensure a
high level of customer satisfaction and at a considerably low
cost. The focus today is not on meeting the customer’s
expectations, but on exceeding them. The strategic role of
logistics and supply chain management in this regard
becomes vital. To achieve the objectives of logistic and supply
chain management, it is essential to have a well-defined
organisational structure that supports the corporate mission
and improves and influences logistics system performance.
With the growing nature and scope of logistics and supply
chain management in the overall performance of the enterprise
over the years, there have been changes in the logistics
organisational structure from being a part of various functions
like manufacturing, finance, and marketing to a core function.
While designing a logistics organisational structure, firms
need to follow certain principles of organisation, like unity of
command, span of control, authority and responsibility, line
and staff relationships, centralization and decentralisation of
power etc. At the same time, it is essential to take into
consideration the various factors like the size of organisation,
corporate structure and strategy, the role of logistics and
supply chain management in the overall value-addition
activities, availability of IT infrastructural resources, and
environmental uncertainty.
 BIBLIOGRAPHY
SUPPLY CHAIN MANAGEMENT
L.C. JHAMB INTERNATIONAL LOGISTICS PIERRE
DAVID SUPPLY CHAIN MANAGEMENT
SUNIL CHOPRA BROCHURE OF SAFEXPRESS

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