“OPTIMIZATION OF FREIGHT COST”

AT
ITC Ltd. MUNGER

Under Guidance of
Company: Mr. T. S. Kannan
College: Prof. V. Naraynan
By:-Aniket Kumar
PGDBM(2009-11)
Reg No.:-091106
 Presentation Outlines
Section- A Section- B
• Introduction of ITC Ltd.
• Executive Summary
Munger &Business Segments • Materials & Truck Study
• Policies of ITC & Functional • Reasons, Aim & Scope of
Departments the Project.
• SWOT analysis of ITC • Analysis & Findings of the
• Vision,Mission & Competitors Study
Analysis of ITC Ltd. • Conclusion/ Learnings
 Analysis & Findings of Study
Analysis of the study
In case of materials we can optimize the
freight cost by increasing the number
of materials packed which will
increase the weight and height without
disobeying RTO rules and transporters
contract. The materials are :-
• BOPP-Increasing18bobbins per pallet
• CIGARETTE PAPER- Increasing 4
bobbins per pallet
• PPCT- Increasing 8 bobbins per pallet
• FILTER ROD- 393 cfc instead of 330
cfc by stacking 5 high from the floor
of truck.
Findings of the study
• For the purpose of shipment, the cargo
can be increased by stacking the CFC
in different manner to utilize the
volume
• If the goods could be arranged in the
pallet in such a manner that the
optimum use of the space inside the
pallet could be done, the quantity laden
in the trucks could be increased.
• All the transporters should give their
truck’s unladed weight, which would
help the company to quantify the
weight of the materials to be loaded in
any particular truck.
 Introduction of ITC Ltd. Munger
&Business Segments
Introduction Business Segments
• First cigarette company • FMCG  
established on 24th Aug 1907 Cigarettes
in Munger, as Imperial
Others
Tobacco Company
• Hotels
• Brands produce are- Gold
flake, Scissors, Capastan, • Paperboards, Paper &
Flake, Virginia Packaging
• Market capitalization:-US $ • Agri Business
22 billion • Other Business
• Turnover :- US $ 6 Billion
 Vision, Mission &Competitors
Analysis of ITC Ltd.
Vision & Mission Competitors
• Vision:-Sustain ITC’s position as • Godfrey Phillips India (GPI)
one of India’s most valuable
corporations through world class
• Vazir Sultan Tobacco (VST)
performance, creating growing • Golden Tobacco Company
value for the Indian economy and (GTC)
the Company’s stakeholders.
• Domestic Competitors:-
• Mission:- To enhance the wealth
generating capability of the a. Kanhayya Tobacco(Nepal)
enterprise in a globalizing b. MR Tobacco(Delhi)
environment, delivering superior
and sustainable stakeholder value c. Sudarshan Tobacco
 Policies of ITC & Functional
Departments
Policies Functional Departments
• Quality Policy • Human Resource Department
• Safety Policy • Commercial Department
• Corporate Environment • Production Department
Policy • MIS Department
• Corporate Social • Quality Assurance Department
Responsibility • Engineering Department
• Printing & Production
Department
• Security Department
SWOT Analysis
 Executive Summary

• “OPTIMIZATION OF FREIGHT COST” means reduction of transportation

cost by optimum utilization of space and capacity for the purpose of
minimizing the existing cost structure in the mode of transport.
• The preferred mode of transportation for the ITC is roadways, mostly through
trucks, as it helps in the easier disposal of the distributable at the specific
distribution points.
• Study included methods to measure the quantity of the finished product and
raw materials carried by a single truck, as also the total no. of trucks being
used in a day, by measuring the volume of truck and materials.
• After studying all these it found that the trucks can be utilized to its fullest
capacity by increasing the weight of pallet through increasing the size of the
pallet cartoon, quantity of materials per pallet, which definitely pertains to the
rules of RTO.
 Materials & Truck Study
Materials Study Truck Measurement & Capacity study

• Paper and Paper-board (PPD) • Studied the trucks provided by

• Filter Rods transporters to ITC Ltd. Munger.
• Pre-Printed Cork Tipping Paper a. India Carriers Private Limited
(PPCT) (ICPL)
• Printed Papers b. Gold Star Carriers (GSC)
• Corrugated Fiber Cartoons (CFC) c. Unique Carriers Private Limited
• Aluminum Foil/ Metalized Paper (UCPL)
• BOPP Film d. Indian Roadways Corporation
Private Limited (IRC)
e. Road Transport Corporation
(RTC)
 Reasons, Aim & Scope of the
Project
Reasons & Aim
Reasons:- the majour reasons are
• To understand the distribution
strategy
• To understand the capacity
management
• Freight management
Aim:- To save the transportation cost
on per material transported or
transferred so that the company
can maximize its profit
Scope
Scope:- Optimize the freight cost
without making change to the
transporters contract and without
disobeying the rules of RTO.
• This study basically optimizes the
freight cost by using the fullest
volume of the laden weight of loading
the goods by either increasing the
weight of the materials which are
loaded and by increasing the
materials during packaging, which
would help to reduce the cost of
transportation per material.
 Conclusion/ Learnings
• Got an exposure of the corporate world
• Came to know the criteria for the trucks
• Came to learn a new way and techniques to optimize or to reduce the
cost on freight.
• To know about the RTO rules regarding the transportation as per type
of truck used for transportation.
• To know the distribution channels and their ways of transporting.
• To know the managerial decision making process.
• How a company like ITC comes out with innovative products or
projects.