A Project Report by Vighnesh

A PROJECT REPORT

ON

“STUDY OF PHYSICAL DISTRIBUTION FUNCTIONS IN RRK LOGISTICS”

SUBMITTED BY

VIGHNESH.M.BIBVE

SEAT NO. :

SUBMITTED TO

UNIVERSITY OF PUNE

IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF BBA

S.P.MANDALI’S

SIR PARASHURAMBHAU COLLEGE,

PUNE-30

BATCH 2008-2011

1

CERTIFICATE

“TO WHOM SO EVER IT MAY CONCERN”

This is to certify that Mr. ‘VIGHNESH .M. BIBVE’of

“S.P.COLLEGE,PUNE” has visited our organization and

collected relevant information for his project titled “STUDY

OF PHYSICAL DISTRIBUTION FUNCTIONS IN

RRK LOGISTICS”

We hereby certify that the information given in this

project is relevant and correct as per our best knowledge.

Shivling Umardand

(Admin/ Mktg Manager)

RRK LOGISTICS

2

ACKNOWLEDGEMENT

I would like to thank my project guide Prof.Jayshri Rajpoot,

for guiding me through my summer internship and research

project. His encouragement, time and effort are greatly

appreciated.

I would like to dedicate this project to my parents. Without

their help and constant support this project would not have

been possible.

VIGHNESH .M. BIBVE

(SEAT NO. – 10039)

3

To Whomsoever It May Concern:

This is to certify that Mr. VIGHNESH .M. BIBVE is a bonafide student of S.P.College, Pune. He

has successfully carried out his summer project titled “Study of Physical Distribution

functions in RRK Logistics, Pune”

We wish him all the best for his future.

Prof. Jayshri Rajpoot

(Project Guide) (Prof-in-charge)

4

INDEX

SR.

NO.

TITLE PAGE NUMBER

1 Introduction

-Company Profile

-Organisational Structure

-Financial Status

7

2 Aims & Objectives of the study of Physical

Distribution

-Marketing Concepts

-Marketing Mix

-Physical Distribution

10

3 Research Methodology

-What is Research

-What is Research Methodology

-Types of RM

21

7 Methods of Data Collection 24

5

-Primary Data

-Secondary Data

8 Data Analysis & Interpretations 28

9 Problems 34

10 Limitations 35

12 Services & competitors 36

13 Findings 43

14 Conclusion 45

15 Bibliography 46

16 Annexure 47

6

CHAPTER I

INTRODUCTION

Company Profile

RRK Logistics is a well established logistics firm. RRK Logistics is a 40-year

old partnership firm. RRK Logistics have been the Clearing

&Forwarding(C&F) Agent of reputed companies like Aditya Birla group- Birla

Super cement, Ultratech cement, Orient cement, Sahyadri industries ltd, Blue

Bird publications etc.

The firm primarily carries out goods transportation activities in Pune

district and surrounding areas. The firm performs different allied activities like

railway clearing,transporting, warehousing,etc. The approximate turnover of

RRK Logistics as of 2011, is Rs. 25 crore.RRK Logistics consists of a fleet

strength of 55 trucks (40 turbo 2515, 12tempo 1107 & 3 small tempo 407).

The firm has 2 offices, one at the main operation point i.e. at Pune

goodshed and second office at Bhawani peth in Pune city.RRK Logistics carry

out their operations from Pune, Khadki, kedgoan & Chinchwad stations.

7

ORGANISATIONAL STRUCTURE

Financial Structure

8

Partners/BOD

Operations

Mukadam(Labour

contractor)

Contract Labourers(200

)

Inventory supervisor(4)

Material Handling

Supervisor(2)

Logistics Supervisor

Truck Drivers(52)

Admin & Marketing

Assistant Manager

Technical Assistant

Accounts Clerk

Liabilities Fixed Assets as of 31st Mar,2011

Capital Account Computer 1,00,000

Partner's Capital(A) 1,23,00,000 Fax & Xerox machine 2,00,000

Partner's Capital(B) 1,23,00,000 Furniture 50,00,000

Partner's Capital (C) 1,23,00,000 Mobiles 2,00,000

Partner's Capital(D) 1,23,00,000 Office equipment 75,00,000

Office shed 25,00,000

Loan (Liability) Other vehicles 70,00,000

Bank OD A/C 25,00,000 Other vehicles-let out 5,00,00,000

Secured Loans 7,00,00,000 Trucks 11,30,00,000

Unsecured Loans 5,60,00,000

Current Liabilities Investments

Duties & Taxes 2,00,00,000 Land 75,00,000

Provisions 75,00,000 Shares-Janata Sahakari Bank 2,00,000

Sundry Creditors 1,23,00,000 Shares-Lokseva Sahakari Bank 1,50,000

Shares-Milano Patel 25,000

Shares-Vishveshwar Sahakari Bank 25,000

Profit & Loss A/c Current Assets

Opening Balance 75,00,000 Deposits(Assets) 1,00,00,000

Current Period 2,50,00,000 Loans & Advances(Assets) 50,000

Sundry Debtors 35,000

Cash-in-hand 15,00,000

Bank Accounts 4,50,00,000

Electrical Instruments 15,000

Total 25,00,00,000 Total 25,00,00,000

CHAPTER II

Aim & Objective of study

9

To study the scope & concept of physical distribution

To study the actual functioning of RRK Logistics.

CONCEPT OF MARKETING

Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large. It generates the strategy that

underlies sales techniques, business communication, and business

developments. It is an integrated process through which companies build strong

customer relationships and create value for their customers and for themselves.

Marketing is used to identify the customer, satisfy the customer, and keep the

customer. With the customer as the focus of its activities, it can be concluded

that marketing management is one of the major components of business

management. Marketing evolved to meet the stasis in developing new markets

caused by mature markets and overcapacities in the last 2-3 centuries. The

adoption of marketing strategies requires businesses to shift their focus from

production to the perceived needs and wants of their customers as the means of

staying profitable.

The term marketing concept holds that achieving organizational goals depends

on knowing the needs and wants of target markets and delivering the desired

10

satisfactions. It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy

these more effectively than competitors.

Marketing is defined by the American Marketing Association as "the activity,

set of institutions, and processes for creating, communicating, delivering, and

exchanging offerings that have value for customers, clients, partners, and

society at large. Marketing is a product or service selling related overall

activities. The term developed from an original meaning which referred literally

to going to a market to buy or sell goods or services. Seen from a systems point

of view, sales process engineering marketing is "a set of processes that are

interconnected and interdependent with other functions, whose methods can be

improved using a variety of relatively new approaches."

Marketing Mix

The term "marketing mix" was coined in 1953 by Neil Borden in his American

Marketing Association presidential address. However, this was actually a

reformulation of an earlier idea by his associate, James Culliton, who in 1948

described the role of the marketing manager as a "mixer of ingredients", who

sometimes follows recipes prepared by others, sometimes prepares his own

recipe as he goes along, sometimes adapts a recipe from immediately available

11

ingredients, and at other times invents new ingredients no one else has tried. A

prominent marketer, E. Jerome McCarthy, proposed a Four P classification in

1960, which has seen wide use

Four P's

Elements of the marketing mix are often referred to as the "Four P's":

PRODUCT- It is a tangible object or an intangible service that is mass

produced or manufactured on a large scale with a specific volume of

units. Intangible products are service based like the tourism industry &

the hotel industry or codes-based products like cellphone load and credits.

Typical examples of a mass produced tangible object are the motor car

and the disposable razor. A less obvious but ubiquitous mass produced

service is a computer operating system. Packaging also needs to be taken

into consideration. Every product is subject to a life-cycle including a

growth phase followed by an eventual period of decline as the product

approaches market saturation. To retain its competitiveness in the market,

product differention is required and is one of the strategies to differentiate

a product from its competitors.

Price– The price is the amount a customer pays for the product. The

business may increase or decrease the price of product if other stores have

the same product.

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Place– Place represents the location where a product can be purchased. It

is often referred to as the distribution channel. It can include any physical

store as well as virtual stores on the Internet.

Promotion-represents all of the communications that a marketer may use

in the marketplace. Promotion has four distinct elements:advertising,

public relations,personal selling and sales promotion. A certain amount of

crossover occurs when promotion uses the four principal elements

together, which is common in film promotion. Advertising covers any

communication that is paid for, from cinema commercials, radio and

Internet adverts through print media and billboards. Public relations are

where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade

fairs and events. Word of mouth is any apparently informal

communication about the product by ordinary individuals, satisfied

customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of mouth

and Public Relations (see Product above).

Any organization, before introducing its products or services into the market;

conducts a market survey. The sequence of all 'P's as above is very much

important in every stage of product life cycle Introduction, Growth, Maturity

and Decline.

13

PLACE- Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store as

well as virtual stores on the Internet.

A]Channels of Distribution :

Channel of distribution denotes the intermediaries involved in the process

whereby a product passes from the manufacturer to consumers. It is

very important for the producers to involve middlemen in order to

reach consumers. Middlemen reduce the problems of both producers

and consumers. Secondly, middlemen help in distributing the products

over a large area. Middlemen also supply useful market information to

the producer for improving the product. Involvement of middlemen

adds to the convenience of consumers because they are able to lay

many items from a single store. Some people feel that by involving

more middlemen in the process of distribution, the final price of a

products is considerably raised which is ultimately paid by the consumer.

Therefore the number of middlemen involved should be limited, if at

all necessary: There can be various levels of channel. It is for the

producer to decide which level would suit the sale of his product.

Number of Channel Levels

Distribution channel starts from the producer and ends with the

14

consumer. Each layer of middleman that performs some work in bringing

the product closer to the final layer is a channel level. The diagram

given below shows the various channel levels.

Channel 1 Manufacturer Consumer

Channel 2 Manufacturer Retailer Consumer

Channel 3 Manufacturer Wholesaler Retailer Consumer

Channel 4 Manufacturer Wholesalers Jobers Retailer Consumer

Channel 1 is called a direct marketing channel. It has no intermediary

level. Producers sell products directly to the consumers. Channel 2

includes one intermediary which is generally a retailer. Retailers buy

products directly from the manufacturer and sell these to the consumers.

Generally electronic goods like televisions, computers, are sold through

this channel level. Channel 3 consists of two levels, typically a

wholesaler and a retailer. This channel is often used by small

Marketing Mix ::

manufacturers of food items, and other products. Channel 4 contains

three middlemen levels. Jobbers usually come between wholesalers and

retailers. They buy from wholesaler and sell to small retailers who

generally are not served by wholesalers. There can be even more levels

in distribution channel but from producers point of view, greater number

of levels means less control and greater complexity of channel.

15

B]Physical Distribution :

Physical distribution comprises all those activities which deliver customer

satisfaction by supplying right type of products at right place and at

right time regularly. Economical and satisfactory customer service is

the primary goal of physical distribution. Providing the right type of

goal at right place and at right time is the ultimate goal of any marketing

department. These goals may be conflicting, sometimes, e.g., for meeting

sudden and unforeseen demand for goods, maintenance of large inventory

is suggested but this involves cost as well as risk. This means that a

proper balance between the cost and service should be achieved.

Components of physical distribution :-

(i) Order Processing:

Physical distribution begins with customers’ order. Both the

Marketing Mix ::

company and customer are benefitted if order processing is carried

out quickly and accurately. These days computers are used which

establish a link between retailers and producers. Producers keep

a watch on the stock position at retailers’ place retailers may

also place orders through computer. This facility speeds up the

process.

(ii) Warehousing

Every company must store goods to maintain a proper flow.

16

Storage facilities are important because production and

consumption cycles generally do not match. Companies need to

decide the number, space and location of warehouses. The cost

of these should be in balance with customer service. Companies

may own warehouses or take them on rent.

(iii) Inventory

Inventory level also affects customer satisfaction. Marketers would

like that company having enough stock to ful fill all customers’

order immediately. But it involves heavy cost. Companies should,

therefore, carefully plan when to order and how much to order.

(iv) Transportation

Transportation has infact, facilitated the physical distribution of

goods and services over a larger area. Modes of transportation

may include road, rail, water, air, etc. The choice of mode of

transport affects the pricing and condition of goods. Hence this

is an important decision and requires lot of thinking.

Logistics is the management of the flow of goods and services between the

point of origin and the point of consumption in order to meet the requirements

of customers. Logistics involves the integration of information, transportation,

inventory, warehousing, material handling, and packaging, and occasionally

security. Logistics is a channel of the supply chain which adds the value of time

17

and place utility. Today the complexity of production logistics can be modeled,

analyzed, visualized and optimized by plant simulation software.

Origins and definition

The term logistics comes from the Greek logos , meaning "speech, reason, ratio,

rationality, language, phrase", and more specifically from the Greek word

logistiki, meaning accounting and financial organization. The word logistics has

its origin in the French verb loger to lodge or to quarter. Its original use was to

describe the science of movement, supplying & maintenance of military forces

in the field. Later on it was used to describe the management of materials flow

through an organization, from raw materials through to finished goods.

Logistics is considered to have originated in the military's need to supply

themselves with arms, ammunition and rations as they moved from their base to

a forward position. In ancient Greek, Roman and Byzantine empires, military

officers with the title Logistikas were responsible for financial and supply

distribution matters].

The Oxford English Dictionary defines logistics as "the branch of military

science relating to procuring, maintaining and transporting materiel, personnel

and facilities." Another dictionary definition is "the time-related positioning of

resources." As such, logistics is commonly seen as a branch of engineering that

18

creates "people systems" rather than "machine systems". When talking in terms

of human resources management, logistics means giving inputs, i.e. "recruiting

manpowers", which ultimately work for the final consumer or to delivery.

Business logistics

Logistics as a business concept evolved in the 1950s due to the increasing

complexity of supplying businesses with materials and shipping out products in

an increasingly globalized supply chain, leading to a call for experts called

supply chain logisticians. Business logistics can be defined as "having the right

item in the right quantity at the right time at the right place for the right price in

the right condition to the right customer", and is the science of process and

incorporates all industry sectors. The goal of logistics work is to manage the

fruition of project life cycles, supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or

external focus (outbound logistics) covering the flow and storage of materials

from point of origin to point of consumption (see supply chain management).

The main functions of a qualified logistician include inventory management,

purchasing, transportation, warehousing, consultation and the organizing and

planning of these activities. Logisticians combine a professional knowledge of

each of these functions to coordinate resources in an organization. There are

two fundamentally different forms of logistics: one optimizes a steady flow of

19

material through a network of transport links and storage nodes; the other

coordinates a sequence of resources to carry out some project.

Logistics management

It is that part of the supply chain which plans, implements and controls the

efficient, effective forward and reverse flow and storage of goods, services and

related information between the point of origin and the point of consumption in

order to meet customer and legal requirements.

Logistics management is known by many names, the most common are as

follows :

Materials Management

Channel Management

Distribution (or Physical Distribution)

Business or Logistics Management or

Supply Chain Management

CHAPTER III

RESEARCH METHODOLOGY

RESEARCH

Research in common parlance refers to a search for knowledge. One can

define Research as a scientific and systematic search for pertinent information

20

on a specific topic. In fact, research is an art of scientific investigation.

Research is an academic activity and as such the term should be used in a

technical sense. According to Clifford woody research comprises defining and

redefine and problems, formulating hypothesis or suggested solutions;

collecting and organizing and evaluating data; making deductions reaching

conclusions; and at last carefully testing the conclusions to determine whether

they fit the formulating hypothesis. In short, the search for knowledge injective

and systematic method of finding solution to a problem is research. The

systematic approach concerning and the formulation of a theory is also research.

As term research refers to the systematic method.

Research Methodology-

Research methodology refers to the analysis of principles of methods,

rules and techniques. It involves the systematic study of methods which are

applied to analyze a specific project or study. In order to make the research

organized and to increase its reliability different methodologies are adopted.

21

Research methodology involves the collection of theories, concepts or ideas,

comparative studies to different approaches and individual methods which are

conduced when a research work is performed.

There are two main types of Research Methodology,

1- Quantitative methodology,

2- Qualitative methodology.

1- Quantitative methodology-

It is the type by which you test the significance of your hypothesis, in

other words you answer the words: How much Is there a relationship

Quantitative methods tend to be systematic and use numbers... Actually it is a

deep sea.

22

2- Qualitative methodology

It is the type by which you are depending on your observations and

descriptions. It is subjectively and descriptive, no facts.... This kind of method is

used to assess knowledge, attitudes, behaviours, and opinions of people

depending on the topic of your research. Researcher, in this type of method uses

his opinion and experience which are not allowed to be used in quantitative

method at all. About the types of sample and sample size, I think they are apart

of research design not apart of the methodology.

CHAPTER IV

METHOD OF DATA COLLECTION

1) Data to be collected.

Data includes facts and figures, which are required to be collected to

achiever the objectives of the project.

23

a) Primary Data

The data that is being collected for the first time or to particularly fulfill the

objectives of the project is known as primary data.

The above primary data were collected through responses of consumer was

conducted through questionnaires prepared for them.

b) Secondary Data

Secondary data are that type of data, which are already assembled and need not

to collected from outside. These types of data were

i) Company Profile

ii) Product Profile

iii) Competitors Profile

BOOK REVIEWS

Market Management by Phillip Kotler

Updated and current, with several hundred mini-case studies, this is the

definitive marketing text. Not for casual reading as it challenges you to apply

key skills in analyzing "real" marketing examples. Fortunately, learning aids are

available online and referenced in the book.

24

Warehouse Distribution & Operations Handbook Book Description

A hands-on, practical approach to warehouse distribution and operations for

engineers. Table of Contents: Distribution Objectives; Logistics and Strategic

Considerations; Routing Patterns; Carton Handling; Vertical and Horizontal

Transportation Systems; Inventory Control; Site Selection; Private, Public and

Contract Warehousing; Facility Layout and Product Flow Patterns; Truck/Rail

Receiving and Shipping; Order Pickers; Small Item Warehouse Distribution;

Stackables and Unstackables; Automated Systems. Index. 250 illustrations.

2) Data Collection Method for given project, the primary data, which

needed to collect for the first time, were much significant. This type of

information gathered through Survey technique, which is the most

popular and effective technique for correct data collection. The survey

was completed with the use of questionnaires. Questionnaire for

consumer.

Methods of Primary Data Collection

25

A] Observation Method-

From basic observation, we obtained the following facts:-

1] Cements bags are produced at four main locations-Wadi,Hotgi,Malkhed &

Tadpatri.From these places, the bags are transported through Railway wagons to

Pune.

2] Each wagon carries around 1318 Cement bags.These bags are unloaded at

Goods shed. From here the bags are loaded to company trucks.

3]Normally,the bags are loaded at two main godowns-PCMC & Loni. However,

as per requirements, the bags are at times directly transported to client

warehouses, supplier shops, or to direct end users.

4] The physical transportation activity is effectively controlled through an

online channel consisting of Company,Dealer & Transporter. In this channel,

the dealer places direct order to the company through e-mail.

The company then just has to forward the DO-DI number i.e the Delivery

order & delivery Invoice number to the transporters.

On receiving of the DO-DI no.,the transporters transfers the required goods

from the Godowns to the dealer.

As the goods are dispatched, simultaneous email alerts are sent to the

company & dealer about the dispatch.

26

Through a feedback from dealers, respective freight charges are transferred

online to company a/c & then to transporters’ a/c.

CHAPTER V

Data Analysis & Interpretations

The administration & marketing manager was interviewed & the following facts

were obtained:-

1] Important marketing strategies adopted by the firm.

27

Analysis-Since the firm operates in service sector,& also since the firm offers

services mainly to large Industries, we need to adopt strategies that suit the

requirements of Industries. These industries lay down certain criterion for their

transporters.viz

Financial strength of Transporters

Reputation in Market

Good fleet of vehicles

Clean Police record

Efficient & sufficient workers/drivers

Reasonable freight rates,etc

As per these requirements, our firm tries to develop the strategies that

attract large companies.

2] Distribution of work

Analysis-The overall work is divided as per a concrete organisational structure.

As the business is run by partners, one partner looks into the administration &

marketing dept,whereas the other takes care of the operations & finances.

3] Approximate figure of cement dispatch for each month.

Analysis- The average dispatch is of 6 to 7 lakh bags per month.

28

4] Contingencies faced normally.Methods of dealing with them.

Analysis- Yes, there are a lot of unforeseen events that hamper the

transportation channel, like Road accidents, theft of goods, hijacking of trucks,

overloading problems, Octroi checks, etc. Not all of them can be solved

immediately. However, we have a tie-up with Towing & Break-up service

providers, who basically pick the stranded goods & drivers & transport them to

desired locations.

In case of hijacking & theft, the necessary police activity is initiated

at the earliest by the firm. For this,every truck is fitted with GPS device that

keeps a track of the its locations. The required compensation is also duly made

to the concerned parties.

5] Advertising of Services.

Ans-The main source of advertising we adopt is Transit Advertising.

All our trucks contain the firm’s banners & contact details. RRK Logistics is an

active sponsor of many local sports events

& festivals like Ganeshotsav,Dahihandi, Navratri,etc. One important method of

advertising is our Goodwill & mouth publicity.

29

2008 2009 2010 20110

0.5

1

1.5

2

2.5

3

3.5

4

TransportMaterial handlingwarehousing

Graph 1.1-Variation in Transportation,Storage & Warehousing Charges in the

Logistics business.

Explanation-As is clear from the above graph,

the transport & material handling rates have grown consistently over last 4

years. This has accounted from the various overhead costs like driver’s salary,

diesel, tools & spare parts,etc.

the warehousing rates have undergone variations. The main reason for this is

the seasonal changes. Goods cannot be kept into godowns all year round.

Due to the government restricting the storage quantity of goods in

warehouses, the stockists faced the problem of non-optimal storage of goods.

30

Graph 1.2-Market share of RRK Logistics & its competitors.

Sales

RRK(Ultra-tech)Trimurti(Ambuja cement)DHL(ACC Cement)Girwani(J.K.Super cement)Kate(Bharti Cement)

Explanation:- Its evident from the above graph that,

RRKL occupies an important & major position of the total market. Also,

Ultra-tech cement stands out to be the leading brand amongst all other brands of

cement.

RRKL boasts of maximum coverage & reach to consumers at market level. It

owes its share to its reputation, experience & efficiency of operations.

On the adverse side, due to the introduction of latest brands of cement like

J.K.Super & Bharti cement, the prevailing brands are facing reduced demand

problem.

31

Graph1.3 Variation in Profit of RRKL in last 4 years.

2008 2009 2010 20110

0.5

1

1.5

2

2.5

3

In Crores

Explanation:- From above graph ,we understand following facts-

Besides the year 2009,the company profit has consistently increased over last

4 years.

The main reason for fall in profit in 2009 was that of Recession. In this

period, there was minimal demand, production, supply & hence transportation

of cement. Since the construction industry was profoundly affected, the

logistics business also had to suffer the repercussions.

However, with the decline of recession, the logistics business took a double

leap & work began to flow with double speed.

32

CHAP TER VI

Problems:-

Logistics business consists of following main shortcomings-

Traffic congestion

Lack of mobility and accessibility

Disconnected transportation modes

33

Transportation following emergencies

Traffic accidents, injuries, and fatalities

Air pollution

Safety and security

Goods movement delays

Unanticipated transportation needs

Lack of transportation information

CHAPTER VII

Limitations

1]Observational techniques serve to reveal the discrepancy between the way in

which public interventions are understood high up at decision-making level, and

the way in which it is understood in the field; it highlights the interpretation

made of it by individuals in an operational situation.

34

2]The observation is generally limited to a small number of settings.

Generalisation is therefore possible only if the intervention is sufficiently

homogeneous across sites.

3]It is based on spontaneous or naturalistic data, gathered by an independent

and experienced observer. The reliability of the observation depends to a large

extent on the professional know-how of the observer-analyst. It is however

possible to introduce a structured observational template that can be used by

less experienced researchers, when gathering data across a large number of

settings.

4] observation requires meticulous preparation to enable the observer to fit into

the observed context without disturbing anyone [what sort of preparation?], as

well as considerable time for data collection. making it an expensive method.

5] The technique allows data to be gathered in difficult situations where other

survey techniques cannot be used.

CHAPTER VIII

SERVICES & COMPETITORS

Services Of RRK Logistics & Its Competitors

RRK Logistics provides following main services to its clients-

1] Total Material Handling

35

2] Railway clearing & Forwarding

3] Storage & Warehousing

4] Clearing & Forwarding agents

5] Goods transportation.

6] Other related supply chain & logistics operations.

COMPETITORS

Logistics business is a field of immense competition, in which a number of

players try their luck. Every logistics firm tries to acquire the transportation

links from large companies. Following are the major competitors of RRK

Logistics-

Trimurti Roadlines

Girwani Transports

DHL

Mahaguru Roadways

Khurana Logistics

Kate Transports

NEW RATE LIST

APPAI

  Destination

Existing Rate

Per Bag Tappa

36

1 Gokhale Nager 4.75 1

2 Pune City 4.75 1

3 Shivajinager 4.75 1

4 Aundh 5.25 1

5 Dattawadi 5.25 1

6 Dhanori 5.25 1

7 Erendawane 5.25 1

8 Ganesh Khind 5.25 1

9 Ghorpadi 5.25 1

10 Kalayaninager 5.25 1

11 Koregaon Park 5.25 1

12 Kothrud 5.25 1

13 Modi Bag 5.25 1

14 Mundhwa 5.25 1

15 Pandavnager 5.25 1

16 Paud Fata/Road 5.25 1

17 Tingrenager 5.25 1

18 Vishrantwadi 5.25 1

19 Yerwada 5.25 1

TAPPA II

99 Alandi 5.90 2

100 Ashtapur 7.15 2

10 Bhima Koregaon 7.15 2

37

1

102 Bhukum 7.15 2

103 Chandkhed 7.15 2

104 Charolie 7.15 2

105 Chimble Fata 7.15 2

106 Dehu gaon 7.15 2

107 Dehu Road 7.15 2

108 Dhanore 7.15 2

TAPPA III

153 Dive (Saswad) 8.40 3

15 Jejuri 8.40 3

38

4

155 Navlakh Umbre 7.50 3

156 Paud 8.20 3

157 Paud Gaon 8.20 3

158 Rohakal 8.40 3

159 Saswad 8.40 3

160 Shindwane (jejuri) 8.40 3

161 Bebi Dohal 9.45 3

162 Bhugaon 9.45 3

163 Chandegaon 9.45 3

164 Dalumbre 9.45 3

165 Ghaunje 9.45 3

166 Kamshet 9.45 3

167 Maale 9.45 3

168 Manglur 9.45 3

169 Parandwadi 9.45 3

170 Perne Fata 9.45 3

171 Salumbre 9.45 3

172 Shel Pimplegaon 9.45 3

39

173 Talegaon Dm 9.45 3

MATERIAL HANDLING

Material Handling rates of RRK LOGISTICS

As the labourers employed at RRKL are contract labourers, they all belong

to a district-level labour association viz. Hamaal Panchayat. The rate of their

remuneration is fixed as per the destination. According to the destinations, the

rates are divided into 3 categories. As per the rules prescribed down & agreed

upon by the association, their wages are directly deposited to their union

offices.

There is a unspoken monopoly of these contract labourers in the process

of material handling. Other labourers do not take up this work.

MATERIAL HANDLING RATES

Distance(Km) Rate(In Rs)

0 to 25 3.30 per bag

25 to 35 5.30 per bag

35 and above 8 per bag

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*These rates are inclusive of Loading to the truck & Unloading from

truck.

* Separate workers called as “Dock workers” are employed to unload the

goods from railway wagons. There rates are Rs.1.50 per bag.

INNOVATIONS IN SERVICE INTRODUCED BY RRK

RRK Logistics is constantly striving to introduce novel services &

operational efficiencies in the transportation business. Logistics is associated

with movement, likewise RRK has always tried to move ahead with time,

updating & improving itself. Some of the novelties adopted by RRK are:--

Total computerisation of the day-to-day business. Manual Documentation

to be replaced by Computerised version:- This strategy,which is prevalent

in global shipping firms, is being modified & installed to suit the road

transport business.

RRK has already installed a complete online database of its clients,

dealers & stockists, through which it controls & carries out its operations.

Private Railway Sliding/Track Laying:-

Under this ingenious concept, RRK is building private railway

tracks alongside government tracks. Through these private slidings, the

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Goods wagons will be detoured & directed towards the firm’s sheds. This

shall save the time of transit & improve the efficiency of operations.

DIVERSIFICATION MOTIVES:-

Keeping in line with its core business of transportation,

RRK Logistics is also diversifying itself into different line of businesses

viz. Land Developing & Construction line.

They have made a tie-up with a reputed construction

company, The Calyx Group, under which they have introduced a new

scheme at Pirangut. This scheme will boast of a total of 700 flats & Row

houses.

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CHAP TER IX

FINDINGS

According to my analysis RRKL have a very fleet strength i.e. they

have 55 trucks (40 turbo, 12 tempos, 3 small tempo).

The trucks of RRKL are in good conditions.

The firm does transportation in whole Pune district so mostly medium

and small size tempos are sent into city areas and big trucks are sent

into city outskirts, because of traffic and narrow roads in city areas.

The labourers are contract labourers from hamal panchyat Pune.

Daily dispatch of cements is 27000 to 30000 Bags per day.

The railway yard is open for 24*7 for loading & unloading of railway

wagons & trucks but RRK Logistics working time is morning 9 to

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evening 7.30 it is not standard time it get fluctuating truck rotations

schedules and also for traffic conjection in city areas.

Maximum cycle time for trucks from truck loading to trucks returning

back to railway yard is, for small tempos the cycle time is 1.5 to 2.5 hours

& for big trucks that is 5 to 7 hours.

The working of the firm is fully computerized and daily online

reporting is followed.

Then there is more work RRK Logistics also attach external fleets

from other transporters.

Process of transportation of RRK Logistics

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CHAPTER X

Conclusions:-

1] Logistics business is of obvious importance in present age of pace & haste.

Even with the growing expanse of Internet & its facilities, one cannot deny the

need for physical distribution of goods.

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Company allots

the consignments to dealers

Cements bag

s unloaded from

wagons to yard

Company provides orders &

other

information

Cement is

loaded

into

trucks

Message is sent to

the dealer

about

the goods

position

Truck reaches to retaile

r godowns

2] There is increasing demand for computerisation of the whole operation of

logistics & transportation. This is primarily to ensure the reliability & efficiency

of operations.

CHAPTER XI

BIBLIOGRAPHY

1] Marketing Management by Phillip Kotler

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2] Warehouse Distribution & Operations Handbook by David E.Mulcany

3]Basic Business Logistics: Transportation, by Ronald H.Ballou

Materials Mgmt & Physical Distribution

4] Competing for the future by C.K.Prahlad & Gary

Hamel

5] Websites:-www.wikipedia.org

www.google.com

www.amazon.com

CHAPTER XII

ANNEXURE

QUESTIONNAIRE

Q1] What are the important marketing strategies adopted by the firm?

Q2] How is the distribution of work carried out?

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Q3] What is the approximate figure of cement dispatch for each month?

Q4] What are the Contingencies faced normally? How do you deal with them?

Q5]Being a logistics firm, how do you advertise your services?

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