AGROCITY Logistic System

8/8/2019 AGROCITY Logistic System

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ABOUT US

AGROCITY FOOD OIL INDUSTRYs PVT.LTD. is founded in the year,1999. Initially it started with the oil plantation and Food Manufacturingbusiness.

VISION & MISSION

Accomplish the excellence in the business ethics and the operations asthe best performance based food manufacturing and oil plantation and tobe recognized as the best.

CORE VALUES

Deep rooted ethics

We conduct business with ethics as our primary principle.

Integrity

We hold the highest levels of integrity.

Process and quality excellence

We are a process and quality driven organization.

MISSION

To provide the highest quality product to our customer, staff andshareholder.

Leading Manufacturers and Exporters of Vegetable Oilsand Fats in India.


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INTRODUCTION:

AGROCITY Food Industrys PVT. LTD. Mumbai, a public listedcompany listed on the Bombay Stock Exchange whose principalactivities are in oil palm plantations and Food Manufacturing and

Marketing of branded consumer products.

AGROCITY is proud to be one of the leading manufacturers andexporters of vegetable oils and fats in India. Our company offers anextensive range of products including tailor made products for the foodservice and retail-markets worldwide.

We offer flexible and well tailored services, working hand in handwith our valuable customers in ensuring cost-effective solutions areprovided to meet all their requirements. From sourcing of raw materialsand stringent quality standards in processing, to tailored products withinnovative packaging and well-niche logistic system, we strive toestablish closer working partnerships with our growing customer networkin the supply of vegetable oils and fats.

The total food production in India is likely to increase substantiallyin the coming years which will throw enormous opportunities for largescale investments in food and food warehousing, logistics managementand processing.

ORDER PROCESSING:


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Our companies order processing system involves procedures like pick

up, packaging, and delivery of packed items to the shipping carriers. We

have designed and developed the best order processing software, which

can help to take business orders effectively and encourages interest

from the customers towards repeating their business.

Purchase cycle:

Requirement from user department

Send ENQUIRY to vendors

Get QUOTATION from vendors

Study and compare the quotationswith our estimated cost

Negotiate the quotation to fix the price

Place the order to the right vendor

Follow up with vendor

Get the material


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The shift of traditional logistics operations to electronic logistics

Process Traditional

logistics

Electronic logistics

(E-logistics)

Order Predictable Variable

Order cycle time Weekly Daily or hourly

Distribution model Bulk Concentrated More cyclicalSmaller lots

Customer service Scheduled flexible

Customers Reactive, rigid Responsive,

WAREHOUSING:

Inspect the material

Stores credit the material


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Rational use of warehouse facilities, as a rule, floor storing only or inpiles. Warehouse processes are regulated and standardized. Eachwarehouse organizes work based on piercing holes principlelearning from own mistakes.

Efficient regulative base of warehouse operations and loading andoff-loading work.

Rational use of warehouse facilities, all-out methods of work incombination with idle time of equipment and personnel

Centralized warehouse facilities management. Warehouse areas aremanaged by many divisions, i.e. procurement, units and NGDU,extraction units, service departments and etc.

Many warehouse facilities have automated control systems andprovide operative access to data from joint centre

Packaging:

We ensure proper packaging to our edible oil to ensure that it is

delivered in the same condition as processed. Our packaging experts

ensure that our edible oil nutrient and aroma are preserved till the very

end. Proper and reliable packaging also ensures that oil are safe formany type of contamination during the transit period. We offer various

packaging options as per the clients requirements. Our oils are packed

in standard and customized size tin for the industrial usage and in

pet bottles for retail clients. Further these are packed in corrugated

boxes during its transportation to various locations.

Our properly packed edible oils are stored in well-maintained

warehouse, which has the required facility for keeping the products safe

and hygienic. We have expert warehouse staff that keeps the record of


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all the incoming and outgoing stock. It ensures us with ample stock of

the edible oil so that all the orders of our clients are timely executed.

MATERIAL HANDLING:

Globally, movement of major food grains like wheat, for domesticconsumption or exports, is done in an integrated fashion in bulk rightfrom farm gate to port or consumption centre. This helps to reducemultiple handlings and associated high wastage and pilferage, whichtypical exists in developing countries like India.

Agrocity Logistics Ltd. is responsible for development and operation of

bulk food grain handling, storage and transportation facilities. AgrocityLogistic Ltd has developed vertical silos to store grains and movement inbulk in top loading/ bottom discharge wagons.

INVENTORY CONTROL:

Types of Inventory Control Systems

As the earlier discussion implies, there are two primary questions toanswer in logistics system design.(1) Who will make the ordering decision?(2) What is the smallest amount of information on which those decisionscan be based?

The ordering decision must answer two questions:1. How much should be ordered?2. When should it be ordered?

A full discussion of the types of logistics systems is beyond the scope ofthis paper.


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In theory, however,

There are only three different types:1. Fixed order size, variable order interval systems

2. Fixed order interval, variable order size systems3. Combination systemsIn a fixed order size, variable order interval (ororder point) system, aspecific fixed amount of a

commodity is ordered whenever inventory falls below a certain level,called the reorder point.

Storekeeping:

The systems for physical control of inventory at each facility will varydepending on staff and storagespace available. A number of general concerns should be addressed ateach location, however,

The first consideration is security of the physical inventory. Minimumsecurity measures include:

1. Ensuring that all stock movement is authorized by locking thestoreroom, limiting access to personsother than the storekeeper and his/her assistants, and ensuring that bothincoming and outgoing stockmatches documentation.2. Verifying authenticity of documentation by spot-checking signaturesand so forth.3. Periodically verifying inventory records by a systematic count of

physical inventory.

The second consideration is the facilitys physical layout. The idealstoreroom should have

1. Two different points for receipt and dispatch of goods to provide fororderly flow of materials and to reduce opportunities for clerical error ortheft.2. A fixed location for each stocked item, with appropriate conditions(temperature, humidity) for theItems being stored.


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3. Adequate space for unpacking received material and for packingoutgoing shipments.4. A separate secure area for valuable items.5. Adequate access to all items in the storeroom to allow for first-to-

expire,first-out(FEFO) handling.

Stock management:

High turnover of stocks onsignificant inventory itemsand as a result frozensignificant turnover assets.

Strong regulative base onstandardizing stocks ofcommodities and goods.

Determined demand formany inventory items (first ofall, for maintenance andexploitation needs).

Systematic regulatedprocedures for operationalidentification and sale of

illiquids.

TRANSPORTATION

It is virtually impossible in todays economy for a company to function

without the aid of transportation. Transportation management covers the

areas of shipment scheduling, freight cost management, carrier

selection, shipment tracking, and parcel management. It helps us tomake the best use of available resources, and keeps fully informed on

all transportation processes.

MODES OF TRANSPORT USED BY THE AGROCITY FOOD

LOGISTIC LTD.

Agrocity Food Logistic Ltd makes use of all modes of transport system.They Design, finance, construct, operate and maintain Base Depots and


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Field Depots. They Receive grains from FCI at the base depots, weighthem, clean them store them and transport them either by rail or road.They Receive in bulk by rail, handle, store and preserve the grains at thefield depots and, thereafter, load these grains in bulk/bags for

transportation by rail or road. They Construct and maintain rail and roadaccess from the depots of the circuit to the nearest rail and roadnetworks.

There is a shipping facility at the enterprise that allows shipment of all

kinds of products by railway in any season. Motor transportation division

of the company delivers products to consumers anywhere the world.

1. Airlines:

This mode is used mostly for delivery of high value and low

volume goods and for their immediate delivery in domestic and foreign

countries. It is also suitable for some specific requirements of urgent

needs.

2. Road :

This mode is used by suppliers to deliver the goods in a cost

effective manner and best suited for short distances. Many transport

companies have expertise for fast delivery, packaging etc. for making

scheduled delivery.


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Road transport is a major mode of transport used by our company to

provide door to door delivery of goods in a lesser cost. Our company use

huge containers to transport material on the large scale in safe way

containers are the new type of vehicle specially designed as per the

climatic conditions required for transport of food oil.

3. Pipelines:

The pipeline mode is offering advantage of having the product

at any time. Generally it is used by oil sector companies for mass

movement of oil related products. Due to quite low operating cost it is

one of the preferred modes of transportation.

4. Railroads:

This is the most economical and safe transportation mode.

This is good for long distance transferring of goods. This is used for

delivery of wide range of goods related to oil, raw material required at

various plant and delivery of finished goods.

Transportation management

In transportation management

Efficient routingschemes, complete

loading, idle lifts, idletime of transport.

Rational system oftransport servicesconsumption, quantity ofprovided transport isconnected with realvolume of transport work.

Effective system ofdispatching and transport

work organization(organization ofcentralized delivery).Significant share of self-delivery.

Efficient regulatory baseon standardizingtransport operation.


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Set up system ofoperative coordination ofcapacity, rates and

requirements ofwarehousing facilities,transport and production.

DISTRIBUTION NETWORK DESIGN

AFIL operates a fully integrated electronic forecasting, production,ordering and distribution system, allowing a Just In Time (JIT) process tobe implemented in many parts of the production and logistical systems.These internal programs result in faster turnaround lead times fromplacement of orders to receivable of goods by our customers.

In India, AFIL trade its products with Eastern Alliance Trading for retailsales and distribution, where the network spanning the tradition

al retail outlets, hypermarkets, supermarkets and convenience stores.

COST FACTOR (COST REDUCTION TECNIQUES)


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Our experts have practical experience of logistics optimization in oil production

sphere and are ready assist you in significant reduction of oil prime cost through

utilization of logistics approaches.

Solution of logistics tasks in oil producing companies assist to achieving ofthe following indicators:

Indicator Outcome

Reduction of order satisfaction level of

customers in procurement system

up to 95

97%

Reduction of warehouse stocks by 2530%

Reduction of order execution time by 1520%

Reduction of warehouse costs by 1015%

Reduction of transportation costs by 914%

Cost reduction on logistics management by 2040%

Reduction of total costs related to KiTRS by 1012%

Purpose of Logistics Systems:

The purpose of a logistics system is simple: to obtain and move supplies

and equipment in a timely fashion to the places where they are needed, at a

reasonable cost. Matters are complicated by the fact that equipment and supplies

usually cannot go directly from their source to the end user; they frequently

mustBe held as inventory at one or more intermediate points along the way.

There are only four reasons for holding inventory:

1. Transportation efficiency:It is not reasonable to ship single bottles of pills across the ocean or to

deliver maternal and child health (MCH) kits to a clinic daily; thus, shipments

are made in batches of a size and frequency dictated by the transportation

system.


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2. Safety stocks: Because trucks break down and roads wash out, and because actualdemand usually cannot be predicted very accurately, facilities must maintain

safety stocks to ensure that they do not run out in times of high demand or late

resupply.

3. Storage capacity:If a facility close to the end user has limited storage space, then inventory

must be held at the next higher level in the system, and must be delivered more

often.

4. Anticipation:In a program that is growing or changing, it is necessary to store

inventory in anticipation of demand that does not exist yet because ofthe length of time between ordering supplies and receiving them. Anysystem that stores inventory for reasons other than these is a candidatefor streamlining. It is important to remember the overriding principle oflogistics system design: the system must be simple. Its purpose is tomove supplies, not to create paperwork.

PRODUCTION

Production facilities, upgraded in 2004, allow processing up to 300 tons

of sunflower seeds per day. Oil is pressed out once allowingproducing a biologically active product; pressed seed cake which isobtained during pressing has high protein and other importantnutrition components.

There is a refining plant and deodorization plant at the facilitieswhich allow obtaining high-quality vegetable fats. The refiningplant makes it possible to process up to 280 tons of vegetableoil per day. Oil undergoes allstages of refining:

Hydration Neutralization Bleaching Winterizing

We keep constant technological and laboratory control over the product

quality and over reagents used in these processes, supplementarydeodorizing powders and bleaching earths at all production stages.


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Production equipment was installed and brought into operation in 2004.When equipping the production line, the latest developments of therefining equipment manufacturer were used.

The finished products come to the Bottling Department where up to 250tons of oil are processed per day. This department has up-to-dateequipment allowing to produce PET bottles and to carry out oil filling andpacking in the widest range of bottles. Oil is saturated with nitrogen inorder to prevent its early oxidation and to preserve its consumer qualitiesfor a long time. Oil is bottled in containers and packed in corrugatedpackaging.

The tankage of the enterprise allows storing oil in the following volumes:

Pressed oil - 8000 tons Refined oil - 600 tons Deodorized oil - 600 tons

Specifics of oil production activity

Large scope of warehousefacilities (hundreds ofwarehouses, hundreds ofthousands of cubic meters ofareas).

Significant amount ofdangerous facilities and

cargos from the point of viewof provision with industrialsafety.

Large fleet of specialequipment of variousapplications.

Tens of thousands ofinventory items with various

conditions of storage, large

Insufficient development oftransport and informationinfrastructure.

Specific geo-climaticconditions.

No determination of demandfor goods and commodities(not clear dependencebetween quantity ofpurchased goods andcommodities from productquantity, i.e. extracted oil).

Importance of following rulesof industrial safety and laborprotection in transporting


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purpose it is intended. Then the entire batch of oil products

back by the company and scrapped. This kind of strong

Reverse logistic system is adopted by the company.

Company website:

We have also launched our company Website

www.agrocityoils.com for getting feedbacks from the customers

and complaints and grievances of them. This website also

displays various products and their information and also gives a

brief history of the company and their operations. The website

is easily accessible to the customers 24 hrs to them.
http://www.agrocityoils.com/http://void%280%29/http://www.agrocityoils.com/


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http://void%280%29/http://void%280%29/

AGROCITY Logistic System

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