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Project on SCM "Optomization of Distribution N/W from DC to Stores

Arindam Chakraborty@ PRINCE2®,SIX SIGMA,MBA,BE, profile picture
Arindam Chakraborty@ PRINCE2®,SIX SIGMA,MBA,BE

The document discusses optimizing the distribution network from a distribution center (DC) in Dankuni to 22 stores in Kolkata, India for Spencer's Retail Ltd. It aims to improve utilization of the company's 10 trucks, which are currently 98% utilized, by optimizing routes and vehicle scheduling to increase kilometers driven above the monthly minimum commitment without increasing capital or labor costs. The objective is to analyze Spencer's logistics operations in Kolkata and propose an optimized route structure and distribution plan to improve operational efficiency.

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OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 1
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 2 ACKNOWLEDGEMENT I would like to express my deepest gratitude in the warmest manner possible towards Mr V.K.M.REDDY,VP(SUPPLY CHAIN) for his extended help&guidance to carry out this project in Spencer’s Retail Ltd,our PROF D.N.CHAKRABORTY for his internal guidance. I also thank Mr ANIRBAN SANYAL,MANAGER(DC) for his guidance at DC with valuable information he shared. The topic is an interesting one. It gave me an opportunity to have a detailed study on the logistics backbone of Spencer’s Retails Ltd at DC-DANKUNI. I came to understand and analyse the distribution network of the Company in Kolkata.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 3 This is to certify that Mr Arindam Chakraborty has completed his project on “Optimisation Of the Distribution N/W from DC to Stores in Kolkata” in Spencer’s Retail Ltd from Aug 2008 to Nov 2008. External Guide --------------------------------------------- V.K.M.Reddy(VP-Supply Chain) Internal Guide -------------------------------------------- Prof D.N.Chakraborty
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 4 INDEX Sr. No. Topic Page No. 1. Objective 5 2. Introduction & Importance of Logistics 6-10 3. Indian Retail Industry 11-12 4. Spencer’s Retail Ltd 13-14 5. Spencer’s Kolkata Operations 15-17 6. Proposed area wise nodes 18-19 7. Kolkata 1 way traffic Nodes 20-21 8. Optimised Route Structure 22-25 9. Kolkata Logistics Operation(Spencer’s) 26-27 10. Logistics Activity from DC 28-29 11. Optimised Logistics Distribution 30-32 12. Vehicle Utilisation Report 33-34 13 Conclusion 35 14 Bibliography 36
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 5 Objective Spencer’s Kolkata Operations is based on Logistics distribution from DC Dankuni to 22 local stores i.e the retail outlets spread across Hoogly dist(2),Kolkata(20) including Kolkata North,Kolkata Central,Kolkata South,Dumdum,Dunlop areas. Spencer’s uses 10 trucks for distribution of materials.The tariff structure is of a monthly commitment of 3000Km/truck i.e total 30000 Km min.After 3000km it is Rs 13/Km. The monthly utilization of trucks for July shows 98% of total overall utilization of the fleet which has to be inproved. Hence the objective of the project is to improve upon the utilization of the trucks above the monthly commitment level so that the fleet can be utilized effectively with max & optimum distribution of material to retail stores.The demand is being realized from indent generated overnight and plan the delivery schedule accordingly.The timing and choosing/picking of appropriate truck to specific location is to be optimized so that the CAPEX do not increase,HEAD COUNT do not increase,only the OPEX increases through extra Km charges.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 6 INTRODUCTION What is LOGISTICS? Logistics is about moving materials, information and funds from one business to another or from a business to the consumer. It is a vital part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP. Every company dreams of achieving the seven R's - delivering the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost. Effective logistics management alone can make this possible. Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different. In the past, quality of products and services was the key differentiating factor for companies operating in the same market. In due course, quality and low cost became the winning combination. Today, responsiveness to the customers' needs is the determining factor. An enterprise that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a potent tool for success in today's competitive business environment. Logistics is an organized process of managing the flow of merchandise from the source of supply - the vendor, wholesaler or distributor - through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 7 Logistics management aims to reduce inventory-holding costs and improve profits, while enhancing customer satisfaction. Anything can be ordered online, but receiving a tangible product is impossible. The difference between e-business success and failure lies in a company's ability to manage the logistics. History of Logistics The Greeks defined logistics as "the science of correct reasoning by means of mathematics". The first modern use of the term was in the military to identify the process of planning and coordinating the movement of army and weapon support systems. Good logistics brings out the ability to move faster and accurately to the battlefront. “If one applies the same to the business organisation, it is one's ability to reach the product to the consumer at the right time, right place, right quantity and at the lowest cost.” On similar lines, supply chain management will mean the network of organisations involved in the process by which goods are moved from producer to consumer and the counter flow of information, to manage the supply chain as a single entity. A prominent application of logistics was in World War II where weapon movements were coordinated to ensure success. A recent instance of massive logistics initiatives is in the Gulf war. With increasing competition in the market place, managements started focusing on customer services in the early 1950s in developed markets such as Europe and the U.S. In late 1960s some of the logistics concepts were tested. Following the oil crisis of the 1970s and the concept of just in time in manufacturing customer-servicing standards were given more importance and new integrated logistics models and solutions were born. The emergence of organized distribution system by department stores and super fast courier service organisations gave a boost to logistics concepts and strategies. Today all businesses are looking for seamless transaction systems to co-ordinate their information and material requirements along the value chain.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 8 At the micro level any manufacturing and marketing company spends 5 - 35 per cent of sales on logistics. The major cost components are transportation, warehousing and inventory carrying cost. Improvements in logistics get reflected in a reduction in inventory levels, shorter delivery schedules, and improved servicing standards with significant savings in total costs. Logistics Management Process Michael Porter in his famous book "Competitive Advantage'' has spoken of the value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The various processes and elements that are part of logistics as a discipline are: Inbound logistics: Purchasing, Inbound transportation, Inventory Management. Manufacturing: Production planning systems, Machine scheduling system. Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems. As customers started demanding improved servicing standards, fast cycle time has become the key factor for business success, whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit. Before delving deep into logistics, a look at the current business scene will be great help.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 9 Scenario of Logistics in India At present, companies specialising in logistics operations in India use traditional technologies and cater to stand alone services like transportation, warehousing, clearing and forwarding. There is tremendous scope to upgrade the technology, integrate the entire supply chain, improve productivity levels and bring down operating costs. Any technology that can improve productivity in transportation operations will be a great boom to the economy both directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the savings on downstream users of transport will be much higher and the cost multiplier effect on the economy will be reduced to that extent. Given the emerging business and technological trends there are possibilities for adoption of innovative logistics solutions specifically designed for India. In addition, there is a requirement for an integrated strategy towards developing logistics and its related IT infrastructure and also enhancing its industry base. In recognition of the growing need for technology-enabled solutions in logistics in India and abroad, many companies such as eLogistics are taking shape. In fact, there are a dozen multinational logistics companies such as Exel, Bax Global and Menlo which have started operations in India during the last few years. Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people. The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like China and Korea.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 10 A reduction in logistics costs by one percentage point will mean a saving of $4.8 billion or Rs. 21,600 crores annually. Besides significant benefits can be reaped through the multiplier effect of better logistics on all economic sectors. About Logistics & Retail Logistics contributes to an organization’s success by providing customers with timely and accurate product delivery. The key question is who is the customer? For logistics, the customer is any delivery destination. Typical destination range from consumers’ homes to retail and wholesale businesses to the receiving docks of a firm’s manufacturing plants and warehouses. In some cases the customer is a different organization or individual who is taking ownership of the product or service being delivered. In many other situations the customer is different facility of the same firm or a business partner at some other location in the supply chain. Regardless of the motivation and delivery purpose, the customer being serviced is the focal point and driving force in establishing logistical performance requirements. It is important to fully understand customer service deliverables when establishing logistical strategies. In a typical retail industry, the delivery of goods to end point customers depends upon its logistic function as the storing & displaying of goods is the only the major part in retail.For timely & accurate delivery of goods in retail outlets the logistic distribution should be an optimum one.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 11 INDIAN RETAIL INDUSTRY India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large- scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. RETAILING FORMATS IN INDIA Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, Pantaloon,Spencers etc. Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World,Books & Beyonds and the Times Group's music chain Planet M, are
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 12 focusing on specific market segments and have established themselves strongly in their sectors. D As the name sugge through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods. iscount Stores: sts, discount stores or factory outlets, offer discounts on the MRP epartment Stores: rom 20000-50000 sq. ft, catering to a variety of consumer needs. . epartmental Stores are expected to take over the apparel business from exclusive brand yper marts/Supermarkets: ing to varied shopper needs are termed as Supermarkets. l onvenience Stores: all stores 400-2,000 sq. feet located near residential areas. They he BO’s: nd outlets, also known as Category Killers, offer several brands across a single D Large stores ranging f Further classified into localized departments such as clothing, toys, home, groceries, etc D showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop. H Large self-service outlets, cater These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and persona sales. C These are relatively sm stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to t convenience premium M Multi Bra product category. These usually do well in busy market places and Metros.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 13
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 14 Corporate Profile ENCEAbout SP R’S RETAIL LTD Spencer’s Retail is one of India’s fastest growing retail stores with multiple formats and retailing food, apparel, fashion, electronics, lifestyle products, music and books. Established in 1996, Spencer’s has become a popular destination for shoppers in India stores in Mumbai, Gurgaon, cknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad,Durgapur MCG Non Food: Non food items such as sehold products,workplace products etc. onics & Electricals items with supermarkets, hypermarkets and dailies spread all over India. Having 400 stores across 66 cities covering a retail trading area of 1.3 million square feet and an astonishing 4.5 million customers a month the count is still growing. FORMATS pencer’s Hypermarkets: Hypermarkets with large formats Ghaziabad, Lu nd Kolkata.a Spencer’s Super: Supermarket chains in the food and grocery segment in India. Spencer’s Daily: small format stores conveniently located with a range of products to meet daily household needs. Spencer’s Express : food and grocery store next door CATEGORIES F FMCG Food: Staples : HWP : Home/Work Place items such as hou Garments: lectrE & E : E
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 15 About SPENCER’S KOLKATA OPERATIONS CORPORATE OFFICE SPENCER’S RETAIL LTD -700001 FLOOR WAREHOUSE,C/O PEARL TRANSPORT COMPANY LIMITED T : HOOGLY,PIN:712310 DUNCAN HOUSE,1ST FLOOR,31,NETAJI SUBHAS ROAD,KOLKATA REGIONAL OFFICE NILHAT HOUSE 11, R. N. MUKHERJEE ROAD th 8 KOLKATA700001 DISTRIBUTION CENTRE REGIONAL PAR DANKUNI,DIS RETAIL OUTLETS NAME ADDRESS NODE ID FORMAT hah Road,Kol‐68 2 Hyper 145,Rashbehari Avenue,Kol‐29 3 Hyper Mani Square Mani Square,164/1,Maniktala main Rd,EM Bypass,Kol‐54 4 Hyper Avishar Avishar,369/4,Purbachal,kalitala Rd,EM Bypass,Kol‐78 5 Super Bangur Avenue 293/294,Bangur Avenue,Block‐'B',Kol‐55 6 Daily Springdale Springdale,Moore Avenue,2 N.N Dutta Rd,Kol‐40 7 Daily Liluah P‐17,Vivekananda Colony,Liluah,Howrah‐4 9 Daily Belur 295,G.T.Rd,Belur,Howrah‐711102 10 Daily Lake town 711,Lake Town,Block‐A,Kol‐89 11 Daily Dumdum Park 497,Dumdum Park,Kol‐55,Nr Tank no 3 13 Daily Prafulla Kanan Maa Tara Apt,AB‐1,Prafulla Kanan(West)Krishnapur,Kol‐101 14 Daily Belghoria Belghoria,75/2,Feeder Road,Kol‐56 15 Daily Sinthi 48 Block 48,B.T.Rd,South Sinthee,Kol‐50 16 Daily Dunlop 156/1/A,B.T.Rd,Kol‐108 17 Daily Tolly Club 120 Deshpran Sashmal Rd,Kol‐33 19 Daily Ballygunge Circular Road 64B,Ballygunge Circular Rd,Kol‐19 20 Express R.N.Tagore‐Tagore Park 19/1,R.N.Tagore Rd,Kol‐76,Nr Dunlop 21 Express Tolly Heights 239,N.S.C Bose Rd,Kol‐84 22 Express Shantineer Shanti Neer,136,Garia Station Rd,Kol‐84 23 Express Mahamayatala Mahamaya Apt,54,N.S.C Bose Rd,Kol‐700084 24 Express Kalindi Satabdi Apt,333D,Jessore Rd,Kalindi,Kol‐89 25 Express South City South City,375 Prince Anwar S Rashbehari
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 16 OUTLETS DISTRIBUTION MAP
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 17 Distribution Centre Dankuni Loading Gate Staples Rack Packing Area
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 18 Proposed Area Wise Nodes AREA NODE ID NAME TYPE A 1 4 Mani Square Hyper A 2 3 Rash Behari Hyper A 3 2 South City Hyper A 4 6 Bangur Avenue Daily 11 Lake Town Daily 13 Dumdum Park Daily 14 Prafulla Kanan ilyDa A 5 15 Belghoria ilyDa 17 Dunlop Daily 21 R.N.Tagore Express A 6 16 DailySinthi 48 Block 25 Kalindi Express A 7 5 Avishar Super 26 Patuli Express A 8 22 Tolly Heights Express 23 Shanti Neer Express 24 Mahamayatala Express A 9 7 Springdale Daily 19 Tolly Club Daily A 10 9 Liluah Daily 10 Belur Daily A 11 20 Ballygunge Circular Rd Express
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 19 AREA MAP
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 20 Kolkata One way Traffic Nodes Courtesy:Kolkata Trafic Police,Lalbazaar Sl.No Name of the Street Direction Time 1. Mother Teresa Sarani (Park Street) East to West West to East 7 AM to 1 PM 1 PM to 10 PM 2. Shakespeare Sarani West to East East to West 7 AM to 1 PM 1 PM to 10 PM 3. Mirza Galib Street South to North North to South 7 AM to 1 PM 1 PM to 10 PM 4. Rafi Ahmed Kidwai Rd North of South South to North 7 AM to 1 PM 1 PM to 10 PM 5. Sorojini Naidu Sarani (Rowdon Street)-Entire Stretch South to North North to South 7 AM to 1 PM 1 PM to 10 PM 6. Dr U N Brahamchari Sarani (Loudon St.) North to South All time (24 hrs) 7. Picasso Bithi (Hungerford St.) North to South South to North 7 AM to 1 PM 1 PM to 10 PM 8. Moira Street West to East East to West 7 AM to 1 PM 1 PM to 10 PM 9. Wood Street & Upper Wood Street North to South South to North 7 AM to 1 PM 1 PM to 10 PM 10 Ho-Chi-Minh Sarani East to West West to East 7 AM to 1 PM 1 PM to 10 PM 11. Middleton Street between J L Nehru Rd and little Russel St. West to East East to West 7 AM to 1 PM 1 PM to 10 PM 12. Sudder St West to East East to West 7 AM to 1 PM 1 PM to 10 PM 13. Nellie Sengupta Sarani (Lindsay St) East to West West to East 7 AM to 1 PM 1 PM to 10 PM 14. Abaniandra Nath Thakur Sarani (Canac St) South to North North to South 7 AM to 1 PM 1 PM to 10 PM 15. Nandalal Bose Sarani (Little Russel St) North of South South to North 7 AM to 1 PM 1 PM to 10 PM 16. Lord Sinha Rd South to North North to South 7 AM to 1 PM 1 PM to 10 PM 17. Middleton Row Entry from Camac St Entry from Park St 7 AM to 1 PM 1 PM to 10 PM 18. Pretoria St North of South South to North 7 AM to 1 PM 1 PM to 10 PM 19. A J C Bose Rd between J L Nehru Rd & Cathedral Rd East to West West to East 7 AM to 1 PM 1 PM to 10 PM 20. L Nehru Rd between Ho-Chi Minh Sarani C Bose Rd North of South South to North 7 AM to 1 PM 1 PM to 10 PM J & A J 21. l Rd between AJC Bose Rd & J L Rd Extension South to North North to South 7 AM to 1 PM 1 PM to 10 PM Cathedra Nehru Rd Crossing, Cathedral
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 21 nSl.No Name of the Street Directio Time 22. Queens way No entry from Casuarina Ave 1 PM to 10 PM 23. Short St. between Camac St and Wood St tWest to Eas 7 PM to 10 PM 24. Albert Rd tEast to Wes West to East 7 AM to 1 PM 1 PM to 10 PM 25. n Rd and J L Nehru oth way Mayo Rd between Duffri Rd East to West B 7 AM to 1 PM 1 PM to 10 PM 26. h h Rani Rashmoni Road South to Nort North to Sout 7 AM to 1 PM 1 PM to 10 PM 27. wai Rd andRipon St between Rafi Ahmed Kid Free School St. West to East East to West 7 AM to 1 PM 1 PM to 10 PM 28. xt) between Pretoria St andPretoria St (E Camac St East to West West to East 7 AM to 1 PM 1 PM to 10 PM 29. Rowland Rd t East to West West to Eas 7 AM to 1 PM 1 PM to 10 PM 30. Outram St rthSouth to No North to South 7 AM to 1 PM 1 PM to 10 PM 31. Mullen St t East to West West to Eas 7 AM to 1 PM 1 PM to 10 PM 32. t t Chakraberia Rd (North) West to Eas East to Wes 7 AM to 1 PM 1 PM to 10 PM 33. Harish rth uth Mukherjee Rd South to No North to So 7 AM to 1 PM 1 PM to 10 PM 34. t t Elgin Rd East to Wes West to Eas 7 AM to 1 PM 1 PM to 10 PM 35. Woodburn Park Rd South to North North to south 7 AM to 1 PM 1 PM to 10 PM 36. Lee Rd North to South South to North 7 AM to 1 PM 1 PM to 10 PM 37. Sadananda Rd South to North hNorth to Sout 7 AM to 1 PM 1 PM to 10 PM 38. Pratapaditya Rd hSouth to Nort North to South 7 AM to 1 PM 1 PM to 10 PM 39. Kalidas Patitundi Lane mple Rd)(Upto Kali Te South to North North to South 7 AM to 1 PM 1 PM to 10 PM 40. h uth Roy St South to Nort North to So 7 AM to 1 PM 1 PM to 10 PM 41. t Justice Chandra Madhab Rd West to Eas East to West 7 AM to 1 PM 1 PM to 10 PM 42. gin Rd up to h h Justice Dwarkanath Rd (From El Justice Chandra Madhab Rd) North to Sout South to Nort 7 AM to 1 PM 1 PM to 10 PM 43. Chakeriaberia Rd (South) West to East East to West 7 AM to 1 PM 1 PM to 10 PM 44. 7 AM to 1 PM 1 PM to 10 PM Royd St East to West West to East
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 22 Optimised Route Structure DC Dankuni >> Area 5 >> Kolkata >> Area 10 >> Area 5 >> Kolkata
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 23 Area 5 >> Area 6 Area 5 >> Area 4 >> Kolkata Area 4 >> Area 1 >> Kolkata
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 24 Area 1 >> Area 11 >> Kolkata Area 1 >> Area 3 >> Kolkata Area 1 >> Area 7 >> Area 2 >> Kolkata
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 25 Area 7 >> Area 8 Area 2 >> Area 9
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 26 Kolkata Logistics Operation Spencer’s FLEET Types of Vehicle Used : Trucks No of Vehicles Used : 10 (Ten) Capacity Of each vehicle : 4.7 T Vehicle Nos : WB41C6356,WB41C9559,WB41C3310, WB41C6357, WB41C6355,WB41C3310,WB23A6763, WB23A5151 WB41C5937,WB41C5938 TARIFF STRUCTURE Monthly Commitment/Vehicle : Rs 39000/month/truck or 3000km/month/truck Extra Usage Charge : Rs 13/km LOADING TYPE Type of loading : Manual Weight of Loads : 3 T No of Crates in each load ; 90(ninety) Time of loading : 5.30AM to 6.00AM No of loading gates : 2(two) LOADING SCHEDULE Mon Tue Wed Thurs Fri Sat Sun E & E FMCG NON FOOD HWP FMCG NON FOOD FMCG FOOD STAPLES E & E STAPLES FMCG FOOD INVENTORY FMCG Non Food: Moderate FMCG Food: Moderate Staples : Moderate HWP : igh Garments: Moderate E & E H : Less
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 27 LIVERY ACTIVITY t IVITY oods Acceptance Docket in case of discrepancies. HEDULE PRE DE Delivery Schedule : No Delivery Forecast : No ibleSchedule Time for delivery : flex Indent : generated & modified daily by stores/auto indent if no generated Delivery : as per generated indent POST DELIVERY ACT Despatch Report ; Excel report after truck dispatch PGI : Post Goods Issue report RN ; NoG GAD ; G SCCITY ENTRY/EXIT TRAFIC 8AM TO 12AM : No entry for heavy vehicles y vehicles4PM TO 8PM : No entry for heav
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 28 Logistics Activity from DC (July) RIBUTION AT NODES FROM DC(ACTUAL) time(1 way) time (stores) e (2 way) AREA WISE TIME DIST node Area Running Avg running Avg waiting Total tim Proposed Avg Km(2 way) South city A3 100 1:45 1:40 5:10 Rashbehari A2 85 1:40 2:00 5:20 Mani Square A1 65 1:25 2:00 4:50 Bangur- A Dumdum- P.Kanan 58 2:10 1:30 5:30 4 Dunlop-B.T.Rd- A5-A6 1:10 1:00 3:20 R.N.T 42 Laketown- Kalindi A4-A6 56 2:00 0:40 4:40 Avishar-Patuli- S.neer A7-A8 102 3:00 1:25 7:25 SPDL- TollyHeights- M’Tala A9-A8 96 2:30 2:25 7:25 TollyClub- SPDL A9 99 1:50 1:20 5:00 Liluah-Belur A10 33 2:08 0:32 4:48
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 29 AREA WISE DEMAND DISTRIBUTION AT NODES(ACTUAL) NODE POS AREA DESPATC TOTAL AVG /DAY PRO ED HES DESPATCHES Mani Square A1 6 62 209247 47 Rash Behari A2 6 66 222648 48 South City A3 7 71 239143 43 Bangur Avenue A4 2138 9622 320 Lake Town 3113 Dumdum Park 2282 Prafulla Kanan 2089 Belghoria A5 2 6291 210 609 Dunlop 2236 R.N.Tagore 1446 Sinthi 48 Block A6 2028 4117 138 Kalindi 2089 Avishar A7 4911 8367 279 Patuli 3456 Tolly Heights A8 2182 5554 186Shanti Neer 1642 M atala 1730ahamay Springdale A9 3 4261 142 899 T b 362olly Clu Liluah A10 2613 5222 174 Belur 2609 Ballygunge Circular Rd A11 1561 1561 52
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 30 Optimesed Logistics Distribution PTIMISED LOGISTICS DISTRIBUTION AT DIFFERENT AREAS NODES AREA TRUCK NO G TIME(DC) D TIME (DC) IVAL TIME(AREA) WA TIME(A RN TIME(DC) O LOADIN EPARTURE ARR ITING RETU REA) Mani Sq T1 7:40 2:00 Hrs 12:30A1 4:15 6:15 Belur, Liluah 5 14:4 16:53 0:32 Hrs 18:00A10 12:4 5 Rash behari T2 9:00 11:30 13:05 14:45 Hrs 21:00A2 South T3 0 11:30 13:10 2:00 Hrs 21:00 City A3 8:3 Bangur, L.Town, Dumdu P.kan T4 5 6:1 8:25 1:30 Hrs 12:45 m, an A4 4:1 5 Bangur, L.Town, Dumdum, P.kanan (or A8) A4 13:30 15:30 17:10 1:30 Hrs 21:00 Belghoria, Dunlop, R.N.T A5 T5 4:45 6:45 7:55 1:00 hrs 13:00 Avishar, Patuli (or A3) A7 13:30 15:30 18:30 1:25 Hrs 21:00
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 31 BT Rd, Kalindi 13:00 A6 T6 4:30 6:30 8:30 0:40 Hrs Mani Sq (or A2) A1 14:00 16:00 17:25 2:00 Hrs 21:00 Avishar, A7 T7 9:00 11:15 14:15 1:25 Hrs 21:00 Patuli T.Heights, T8S.Neer, M’Tala A8 8:30 11:45 14:15 2:25 Hrs 21:00 Sp’dale, b A9 8:00 11:15 13:05 1:20 Hrs 21:00 T’Clu T9 B.C.R A11 ---- ------- 14:10 0:18 Hrs -------- Belur, Liluah T10 A10 4:30 6:30 8:38 0:32 Hrs 10:20 S.City (or A2) A3 12:00 16:00 17:40 2:00 Hrs 21:00 OPTIMISED LOGISTICS DISTRIBUTION AT DIFFERENT AREAS ARE A TRU K NO AVG DESPATCHE S (50% 2 DES) TOTAL DESPATCHE S AVG KM/DA Y TOTAL(AVG) KM/DAY (10% TOTAL (AVG) KM NODES C ND MARGIN) /MONTH Mani Sq A1 T1 209 296 65 98+10% = 3240 108 Belur, Liluah A 50% of 174=87 10 33 Rash behari A2 T2 222 222 85 85+10% =93 2790 South City A3 T3 239 239 100 10 =110 3300 0+10%
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 32 Bangur, L.Town, Dumdum, P.kanan A4 T4 320 480 58 116+10% =128 3840Bangur, L.Town, Dumdum, A4 50% of 320=160 58 P.kanan (or A8) Belghoria A5 T5 210 350 42 14 =169 5070 Dunlop, R.N.T 4+10% Avishar, Patuli (or A3) A7 50% of 279=140 102 BT Rd, Kalindi A6 T6 138 56 12 =133 243 1+10% 3990 Mani Sq (or A2) A1 50% of 209=105 65 Avishar, 79 Patuli A7 T7 2 279 102 102+10% =112 3360 T.Heights, S.Neer, M’Tala A8 T8 186 96 =106 186 96+10% 3180 Sp’dale, T’Club A9 T9 142 194 99 104+10% =114 3420 B.C.R A11 52 5 Belur, Liluah A10 T10 174 294 33 133+10% =146 4380 S. City A3 50% of 239=120 100
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 33 VEHICLE UTILISATION REPORT(JULY-ACTUAL) SUM OF BALANCE 3294 ACTUAL VEHICLE NO TOTAL UTILISATION WB41C635 2781 93%7 WB41C6356 2 93%795 WB41C6355 2905 97% WB23A6763 2917 97% WB41C3310 2948 98% WB41C6543 2950 98% WB41C5938 2988 %100 WB41C593 2 100%7 999 WB41C9559 3050 102% WB23A5151 3097 103% GRAND TOTAL 29430 98% 2600 2650 700 2750 2800 2850 900 2950 3000 050 3100 W B41C63W B41C6356 W B 763 W B41C331W B41C63W B41C5938 W B 37 W B41C9559 W B23 2 2 3 3150 57 41C63W B23A6 55 0 43 41C59 A5151
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 34 OPTIMISED VEHICLE UTILISATION REPORT SUM OF BALANCE VE TOT UTIHICLE NO AL LISATION T1 3240 108% T2 2790 93% T3 3300 110% T4 3840 128% T5 5070 169% T6 3990 133% T7 3360 112% T8 3180 106% T9 3420 114% T10 4380 146% GR 3657 122AND TOTAL 0 % 0 1000 2000 3000 4000 5000 6000 T1 T2 T3 T4 T5 T6 T7 T8 T9 T10
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 35 Conclusion From the actual Vehicle Utilisation Report it is clear that highest achieved utilization is 103%.The procedure followed is as& when the vehicle is available is booked for the next required slot(despatch).Also the dispatch area is chosen randomly when demand arises although there are chosen delivery areas.There is no delivery forecast or schedule followed. For optimization I followed a chosen area approach in which nodes are tagged into areas as per geographical proximity.The route is also chosen as per Kolkata police data so that vehicle can reach destination in their defined route.The rule of thumb followed is the lowest the area distances from DC the vehicles are re utilized same day. Hence in this case the areas are prioritized for delivery in the morning so that vehicles can return to DC in time for next schedule the very same day.The areas which are distant from the DC are not chosen for re-scheduling same day cleary for NO ENTRY at city CHECKPOINT.In this way 5 areas namely A1,A4,A5,A6 &A10 are dispatched in the morning.This vehicles are re utilized in other areas and chosen accordingly so that total vehicle running Km gives more than 100% utilization factor.The optimesed highest achieved utilization is 169% and min is 93%.
OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 36 Bibliography EBSITES VISITED shion.com/industry-article/free-retail-industry- article/indian-retail-industry-its-growth-challenges-and-opportunities/indian- Retail Outlets Address Sheet Vehicle Utilisation Report W 1) www.spencersretail.com 2) www.rpg.in 3) http://www.fibre2fa retail-industry-its-growth-challenges-and-opportunities1.asp 4) http://www.scribd.com/doc/5590611/Indian-Retail-Industry LOGISTICS DATA FOR JULY 1) Ware House (DC) Excell sheets A) Vehicle Running Time Management B) Vehicle Running Distance Management C) Total No of Despatches/day 2) 3)

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Project on SCM "Optomization of Distribution N/W from DC to Stores

  • 1. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 1
  • 2. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 2 ACKNOWLEDGEMENT I would like to express my deepest gratitude in the warmest manner possible towards Mr V.K.M.REDDY,VP(SUPPLY CHAIN) for his extended help&guidance to carry out this project in Spencer’s Retail Ltd,our PROF D.N.CHAKRABORTY for his internal guidance. I also thank Mr ANIRBAN SANYAL,MANAGER(DC) for his guidance at DC with valuable information he shared. The topic is an interesting one. It gave me an opportunity to have a detailed study on the logistics backbone of Spencer’s Retails Ltd at DC-DANKUNI. I came to understand and analyse the distribution network of the Company in Kolkata.
  • 3. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 3 This is to certify that Mr Arindam Chakraborty has completed his project on “Optimisation Of the Distribution N/W from DC to Stores in Kolkata” in Spencer’s Retail Ltd from Aug 2008 to Nov 2008. External Guide --------------------------------------------- V.K.M.Reddy(VP-Supply Chain) Internal Guide -------------------------------------------- Prof D.N.Chakraborty
  • 4. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 4 INDEX Sr. No. Topic Page No. 1. Objective 5 2. Introduction & Importance of Logistics 6-10 3. Indian Retail Industry 11-12 4. Spencer’s Retail Ltd 13-14 5. Spencer’s Kolkata Operations 15-17 6. Proposed area wise nodes 18-19 7. Kolkata 1 way traffic Nodes 20-21 8. Optimised Route Structure 22-25 9. Kolkata Logistics Operation(Spencer’s) 26-27 10. Logistics Activity from DC 28-29 11. Optimised Logistics Distribution 30-32 12. Vehicle Utilisation Report 33-34 13 Conclusion 35 14 Bibliography 36
  • 5. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 5 Objective Spencer’s Kolkata Operations is based on Logistics distribution from DC Dankuni to 22 local stores i.e the retail outlets spread across Hoogly dist(2),Kolkata(20) including Kolkata North,Kolkata Central,Kolkata South,Dumdum,Dunlop areas. Spencer’s uses 10 trucks for distribution of materials.The tariff structure is of a monthly commitment of 3000Km/truck i.e total 30000 Km min.After 3000km it is Rs 13/Km. The monthly utilization of trucks for July shows 98% of total overall utilization of the fleet which has to be inproved. Hence the objective of the project is to improve upon the utilization of the trucks above the monthly commitment level so that the fleet can be utilized effectively with max & optimum distribution of material to retail stores.The demand is being realized from indent generated overnight and plan the delivery schedule accordingly.The timing and choosing/picking of appropriate truck to specific location is to be optimized so that the CAPEX do not increase,HEAD COUNT do not increase,only the OPEX increases through extra Km charges.
  • 6. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 6 INTRODUCTION What is LOGISTICS? Logistics is about moving materials, information and funds from one business to another or from a business to the consumer. It is a vital part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP. Every company dreams of achieving the seven R's - delivering the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost. Effective logistics management alone can make this possible. Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different. In the past, quality of products and services was the key differentiating factor for companies operating in the same market. In due course, quality and low cost became the winning combination. Today, responsiveness to the customers' needs is the determining factor. An enterprise that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a potent tool for success in today's competitive business environment. Logistics is an organized process of managing the flow of merchandise from the source of supply - the vendor, wholesaler or distributor - through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer.
  • 7. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 7 Logistics management aims to reduce inventory-holding costs and improve profits, while enhancing customer satisfaction. Anything can be ordered online, but receiving a tangible product is impossible. The difference between e-business success and failure lies in a company's ability to manage the logistics. History of Logistics The Greeks defined logistics as "the science of correct reasoning by means of mathematics". The first modern use of the term was in the military to identify the process of planning and coordinating the movement of army and weapon support systems. Good logistics brings out the ability to move faster and accurately to the battlefront. “If one applies the same to the business organisation, it is one's ability to reach the product to the consumer at the right time, right place, right quantity and at the lowest cost.” On similar lines, supply chain management will mean the network of organisations involved in the process by which goods are moved from producer to consumer and the counter flow of information, to manage the supply chain as a single entity. A prominent application of logistics was in World War II where weapon movements were coordinated to ensure success. A recent instance of massive logistics initiatives is in the Gulf war. With increasing competition in the market place, managements started focusing on customer services in the early 1950s in developed markets such as Europe and the U.S. In late 1960s some of the logistics concepts were tested. Following the oil crisis of the 1970s and the concept of just in time in manufacturing customer-servicing standards were given more importance and new integrated logistics models and solutions were born. The emergence of organized distribution system by department stores and super fast courier service organisations gave a boost to logistics concepts and strategies. Today all businesses are looking for seamless transaction systems to co-ordinate their information and material requirements along the value chain.
  • 8. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 8 At the micro level any manufacturing and marketing company spends 5 - 35 per cent of sales on logistics. The major cost components are transportation, warehousing and inventory carrying cost. Improvements in logistics get reflected in a reduction in inventory levels, shorter delivery schedules, and improved servicing standards with significant savings in total costs. Logistics Management Process Michael Porter in his famous book "Competitive Advantage'' has spoken of the value chain approach and emphasized logistics as one of the most important tools for competitive advantage. The various processes and elements that are part of logistics as a discipline are: Inbound logistics: Purchasing, Inbound transportation, Inventory Management. Manufacturing: Production planning systems, Machine scheduling system. Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems. As customers started demanding improved servicing standards, fast cycle time has become the key factor for business success, whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit. Before delving deep into logistics, a look at the current business scene will be great help.
  • 9. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 9 Scenario of Logistics in India At present, companies specialising in logistics operations in India use traditional technologies and cater to stand alone services like transportation, warehousing, clearing and forwarding. There is tremendous scope to upgrade the technology, integrate the entire supply chain, improve productivity levels and bring down operating costs. Any technology that can improve productivity in transportation operations will be a great boom to the economy both directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the savings on downstream users of transport will be much higher and the cost multiplier effect on the economy will be reduced to that extent. Given the emerging business and technological trends there are possibilities for adoption of innovative logistics solutions specifically designed for India. In addition, there is a requirement for an integrated strategy towards developing logistics and its related IT infrastructure and also enhancing its industry base. In recognition of the growing need for technology-enabled solutions in logistics in India and abroad, many companies such as eLogistics are taking shape. In fact, there are a dozen multinational logistics companies such as Exel, Bax Global and Menlo which have started operations in India during the last few years. Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people. The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like China and Korea.
  • 10. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 10 A reduction in logistics costs by one percentage point will mean a saving of $4.8 billion or Rs. 21,600 crores annually. Besides significant benefits can be reaped through the multiplier effect of better logistics on all economic sectors. About Logistics & Retail Logistics contributes to an organization’s success by providing customers with timely and accurate product delivery. The key question is who is the customer? For logistics, the customer is any delivery destination. Typical destination range from consumers’ homes to retail and wholesale businesses to the receiving docks of a firm’s manufacturing plants and warehouses. In some cases the customer is a different organization or individual who is taking ownership of the product or service being delivered. In many other situations the customer is different facility of the same firm or a business partner at some other location in the supply chain. Regardless of the motivation and delivery purpose, the customer being serviced is the focal point and driving force in establishing logistical performance requirements. It is important to fully understand customer service deliverables when establishing logistical strategies. In a typical retail industry, the delivery of goods to end point customers depends upon its logistic function as the storing & displaying of goods is the only the major part in retail.For timely & accurate delivery of goods in retail outlets the logistic distribution should be an optimum one.
  • 11. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 11 INDIAN RETAIL INDUSTRY India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large- scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. RETAILING FORMATS IN INDIA Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, Pantaloon,Spencers etc. Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World,Books & Beyonds and the Times Group's music chain Planet M, are
  • 12. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 12 focusing on specific market segments and have established themselves strongly in their sectors. D As the name sugge through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods. iscount Stores: sts, discount stores or factory outlets, offer discounts on the MRP epartment Stores: rom 20000-50000 sq. ft, catering to a variety of consumer needs. . epartmental Stores are expected to take over the apparel business from exclusive brand yper marts/Supermarkets: ing to varied shopper needs are termed as Supermarkets. l onvenience Stores: all stores 400-2,000 sq. feet located near residential areas. They he BO’s: nd outlets, also known as Category Killers, offer several brands across a single D Large stores ranging f Further classified into localized departments such as clothing, toys, home, groceries, etc D showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop. H Large self-service outlets, cater These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and persona sales. C These are relatively sm stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to t convenience premium M Multi Bra product category. These usually do well in busy market places and Metros.
  • 13. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 13
  • 14. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 14 Corporate Profile ENCEAbout SP R’S RETAIL LTD Spencer’s Retail is one of India’s fastest growing retail stores with multiple formats and retailing food, apparel, fashion, electronics, lifestyle products, music and books. Established in 1996, Spencer’s has become a popular destination for shoppers in India stores in Mumbai, Gurgaon, cknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad,Durgapur MCG Non Food: Non food items such as sehold products,workplace products etc. onics & Electricals items with supermarkets, hypermarkets and dailies spread all over India. Having 400 stores across 66 cities covering a retail trading area of 1.3 million square feet and an astonishing 4.5 million customers a month the count is still growing. FORMATS pencer’s Hypermarkets: Hypermarkets with large formats Ghaziabad, Lu nd Kolkata.a Spencer’s Super: Supermarket chains in the food and grocery segment in India. Spencer’s Daily: small format stores conveniently located with a range of products to meet daily household needs. Spencer’s Express : food and grocery store next door CATEGORIES F FMCG Food: Staples : HWP : Home/Work Place items such as hou Garments: lectrE & E : E
  • 15. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 15 About SPENCER’S KOLKATA OPERATIONS CORPORATE OFFICE SPENCER’S RETAIL LTD -700001 FLOOR WAREHOUSE,C/O PEARL TRANSPORT COMPANY LIMITED T : HOOGLY,PIN:712310 DUNCAN HOUSE,1ST FLOOR,31,NETAJI SUBHAS ROAD,KOLKATA REGIONAL OFFICE NILHAT HOUSE 11, R. N. MUKHERJEE ROAD th 8 KOLKATA700001 DISTRIBUTION CENTRE REGIONAL PAR DANKUNI,DIS RETAIL OUTLETS NAME ADDRESS NODE ID FORMAT hah Road,Kol‐68 2 Hyper 145,Rashbehari Avenue,Kol‐29 3 Hyper Mani Square Mani Square,164/1,Maniktala main Rd,EM Bypass,Kol‐54 4 Hyper Avishar Avishar,369/4,Purbachal,kalitala Rd,EM Bypass,Kol‐78 5 Super Bangur Avenue 293/294,Bangur Avenue,Block‐'B',Kol‐55 6 Daily Springdale Springdale,Moore Avenue,2 N.N Dutta Rd,Kol‐40 7 Daily Liluah P‐17,Vivekananda Colony,Liluah,Howrah‐4 9 Daily Belur 295,G.T.Rd,Belur,Howrah‐711102 10 Daily Lake town 711,Lake Town,Block‐A,Kol‐89 11 Daily Dumdum Park 497,Dumdum Park,Kol‐55,Nr Tank no 3 13 Daily Prafulla Kanan Maa Tara Apt,AB‐1,Prafulla Kanan(West)Krishnapur,Kol‐101 14 Daily Belghoria Belghoria,75/2,Feeder Road,Kol‐56 15 Daily Sinthi 48 Block 48,B.T.Rd,South Sinthee,Kol‐50 16 Daily Dunlop 156/1/A,B.T.Rd,Kol‐108 17 Daily Tolly Club 120 Deshpran Sashmal Rd,Kol‐33 19 Daily Ballygunge Circular Road 64B,Ballygunge Circular Rd,Kol‐19 20 Express R.N.Tagore‐Tagore Park 19/1,R.N.Tagore Rd,Kol‐76,Nr Dunlop 21 Express Tolly Heights 239,N.S.C Bose Rd,Kol‐84 22 Express Shantineer Shanti Neer,136,Garia Station Rd,Kol‐84 23 Express Mahamayatala Mahamaya Apt,54,N.S.C Bose Rd,Kol‐700084 24 Express Kalindi Satabdi Apt,333D,Jessore Rd,Kalindi,Kol‐89 25 Express South City South City,375 Prince Anwar S Rashbehari
  • 16. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 16 OUTLETS DISTRIBUTION MAP
  • 17. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 17 Distribution Centre Dankuni Loading Gate Staples Rack Packing Area
  • 18. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 18 Proposed Area Wise Nodes AREA NODE ID NAME TYPE A 1 4 Mani Square Hyper A 2 3 Rash Behari Hyper A 3 2 South City Hyper A 4 6 Bangur Avenue Daily 11 Lake Town Daily 13 Dumdum Park Daily 14 Prafulla Kanan ilyDa A 5 15 Belghoria ilyDa 17 Dunlop Daily 21 R.N.Tagore Express A 6 16 DailySinthi 48 Block 25 Kalindi Express A 7 5 Avishar Super 26 Patuli Express A 8 22 Tolly Heights Express 23 Shanti Neer Express 24 Mahamayatala Express A 9 7 Springdale Daily 19 Tolly Club Daily A 10 9 Liluah Daily 10 Belur Daily A 11 20 Ballygunge Circular Rd Express
  • 19. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 19 AREA MAP
  • 20. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 20 Kolkata One way Traffic Nodes Courtesy:Kolkata Trafic Police,Lalbazaar Sl.No Name of the Street Direction Time 1. Mother Teresa Sarani (Park Street) East to West West to East 7 AM to 1 PM 1 PM to 10 PM 2. Shakespeare Sarani West to East East to West 7 AM to 1 PM 1 PM to 10 PM 3. Mirza Galib Street South to North North to South 7 AM to 1 PM 1 PM to 10 PM 4. Rafi Ahmed Kidwai Rd North of South South to North 7 AM to 1 PM 1 PM to 10 PM 5. Sorojini Naidu Sarani (Rowdon Street)-Entire Stretch South to North North to South 7 AM to 1 PM 1 PM to 10 PM 6. Dr U N Brahamchari Sarani (Loudon St.) North to South All time (24 hrs) 7. Picasso Bithi (Hungerford St.) North to South South to North 7 AM to 1 PM 1 PM to 10 PM 8. Moira Street West to East East to West 7 AM to 1 PM 1 PM to 10 PM 9. Wood Street & Upper Wood Street North to South South to North 7 AM to 1 PM 1 PM to 10 PM 10 Ho-Chi-Minh Sarani East to West West to East 7 AM to 1 PM 1 PM to 10 PM 11. Middleton Street between J L Nehru Rd and little Russel St. West to East East to West 7 AM to 1 PM 1 PM to 10 PM 12. Sudder St West to East East to West 7 AM to 1 PM 1 PM to 10 PM 13. Nellie Sengupta Sarani (Lindsay St) East to West West to East 7 AM to 1 PM 1 PM to 10 PM 14. Abaniandra Nath Thakur Sarani (Canac St) South to North North to South 7 AM to 1 PM 1 PM to 10 PM 15. Nandalal Bose Sarani (Little Russel St) North of South South to North 7 AM to 1 PM 1 PM to 10 PM 16. Lord Sinha Rd South to North North to South 7 AM to 1 PM 1 PM to 10 PM 17. Middleton Row Entry from Camac St Entry from Park St 7 AM to 1 PM 1 PM to 10 PM 18. Pretoria St North of South South to North 7 AM to 1 PM 1 PM to 10 PM 19. A J C Bose Rd between J L Nehru Rd & Cathedral Rd East to West West to East 7 AM to 1 PM 1 PM to 10 PM 20. L Nehru Rd between Ho-Chi Minh Sarani C Bose Rd North of South South to North 7 AM to 1 PM 1 PM to 10 PM J & A J 21. l Rd between AJC Bose Rd & J L Rd Extension South to North North to South 7 AM to 1 PM 1 PM to 10 PM Cathedra Nehru Rd Crossing, Cathedral
  • 21. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 21 nSl.No Name of the Street Directio Time 22. Queens way No entry from Casuarina Ave 1 PM to 10 PM 23. Short St. between Camac St and Wood St tWest to Eas 7 PM to 10 PM 24. Albert Rd tEast to Wes West to East 7 AM to 1 PM 1 PM to 10 PM 25. n Rd and J L Nehru oth way Mayo Rd between Duffri Rd East to West B 7 AM to 1 PM 1 PM to 10 PM 26. h h Rani Rashmoni Road South to Nort North to Sout 7 AM to 1 PM 1 PM to 10 PM 27. wai Rd andRipon St between Rafi Ahmed Kid Free School St. West to East East to West 7 AM to 1 PM 1 PM to 10 PM 28. xt) between Pretoria St andPretoria St (E Camac St East to West West to East 7 AM to 1 PM 1 PM to 10 PM 29. Rowland Rd t East to West West to Eas 7 AM to 1 PM 1 PM to 10 PM 30. Outram St rthSouth to No North to South 7 AM to 1 PM 1 PM to 10 PM 31. Mullen St t East to West West to Eas 7 AM to 1 PM 1 PM to 10 PM 32. t t Chakraberia Rd (North) West to Eas East to Wes 7 AM to 1 PM 1 PM to 10 PM 33. Harish rth uth Mukherjee Rd South to No North to So 7 AM to 1 PM 1 PM to 10 PM 34. t t Elgin Rd East to Wes West to Eas 7 AM to 1 PM 1 PM to 10 PM 35. Woodburn Park Rd South to North North to south 7 AM to 1 PM 1 PM to 10 PM 36. Lee Rd North to South South to North 7 AM to 1 PM 1 PM to 10 PM 37. Sadananda Rd South to North hNorth to Sout 7 AM to 1 PM 1 PM to 10 PM 38. Pratapaditya Rd hSouth to Nort North to South 7 AM to 1 PM 1 PM to 10 PM 39. Kalidas Patitundi Lane mple Rd)(Upto Kali Te South to North North to South 7 AM to 1 PM 1 PM to 10 PM 40. h uth Roy St South to Nort North to So 7 AM to 1 PM 1 PM to 10 PM 41. t Justice Chandra Madhab Rd West to Eas East to West 7 AM to 1 PM 1 PM to 10 PM 42. gin Rd up to h h Justice Dwarkanath Rd (From El Justice Chandra Madhab Rd) North to Sout South to Nort 7 AM to 1 PM 1 PM to 10 PM 43. Chakeriaberia Rd (South) West to East East to West 7 AM to 1 PM 1 PM to 10 PM 44. 7 AM to 1 PM 1 PM to 10 PM Royd St East to West West to East
  • 22. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 22 Optimised Route Structure DC Dankuni >> Area 5 >> Kolkata >> Area 10 >> Area 5 >> Kolkata
  • 23. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 23 Area 5 >> Area 6 Area 5 >> Area 4 >> Kolkata Area 4 >> Area 1 >> Kolkata
  • 24. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 24 Area 1 >> Area 11 >> Kolkata Area 1 >> Area 3 >> Kolkata Area 1 >> Area 7 >> Area 2 >> Kolkata
  • 25. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 25 Area 7 >> Area 8 Area 2 >> Area 9
  • 26. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 26 Kolkata Logistics Operation Spencer’s FLEET Types of Vehicle Used : Trucks No of Vehicles Used : 10 (Ten) Capacity Of each vehicle : 4.7 T Vehicle Nos : WB41C6356,WB41C9559,WB41C3310, WB41C6357, WB41C6355,WB41C3310,WB23A6763, WB23A5151 WB41C5937,WB41C5938 TARIFF STRUCTURE Monthly Commitment/Vehicle : Rs 39000/month/truck or 3000km/month/truck Extra Usage Charge : Rs 13/km LOADING TYPE Type of loading : Manual Weight of Loads : 3 T No of Crates in each load ; 90(ninety) Time of loading : 5.30AM to 6.00AM No of loading gates : 2(two) LOADING SCHEDULE Mon Tue Wed Thurs Fri Sat Sun E & E FMCG NON FOOD HWP FMCG NON FOOD FMCG FOOD STAPLES E & E STAPLES FMCG FOOD INVENTORY FMCG Non Food: Moderate FMCG Food: Moderate Staples : Moderate HWP : igh Garments: Moderate E & E H : Less
  • 27. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 27 LIVERY ACTIVITY t IVITY oods Acceptance Docket in case of discrepancies. HEDULE PRE DE Delivery Schedule : No Delivery Forecast : No ibleSchedule Time for delivery : flex Indent : generated & modified daily by stores/auto indent if no generated Delivery : as per generated indent POST DELIVERY ACT Despatch Report ; Excel report after truck dispatch PGI : Post Goods Issue report RN ; NoG GAD ; G SCCITY ENTRY/EXIT TRAFIC 8AM TO 12AM : No entry for heavy vehicles y vehicles4PM TO 8PM : No entry for heav
  • 28. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 28 Logistics Activity from DC (July) RIBUTION AT NODES FROM DC(ACTUAL) time(1 way) time (stores) e (2 way) AREA WISE TIME DIST node Area Running Avg running Avg waiting Total tim Proposed Avg Km(2 way) South city A3 100 1:45 1:40 5:10 Rashbehari A2 85 1:40 2:00 5:20 Mani Square A1 65 1:25 2:00 4:50 Bangur- A Dumdum- P.Kanan 58 2:10 1:30 5:30 4 Dunlop-B.T.Rd- A5-A6 1:10 1:00 3:20 R.N.T 42 Laketown- Kalindi A4-A6 56 2:00 0:40 4:40 Avishar-Patuli- S.neer A7-A8 102 3:00 1:25 7:25 SPDL- TollyHeights- M’Tala A9-A8 96 2:30 2:25 7:25 TollyClub- SPDL A9 99 1:50 1:20 5:00 Liluah-Belur A10 33 2:08 0:32 4:48
  • 29. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 29 AREA WISE DEMAND DISTRIBUTION AT NODES(ACTUAL) NODE POS AREA DESPATC TOTAL AVG /DAY PRO ED HES DESPATCHES Mani Square A1 6 62 209247 47 Rash Behari A2 6 66 222648 48 South City A3 7 71 239143 43 Bangur Avenue A4 2138 9622 320 Lake Town 3113 Dumdum Park 2282 Prafulla Kanan 2089 Belghoria A5 2 6291 210 609 Dunlop 2236 R.N.Tagore 1446 Sinthi 48 Block A6 2028 4117 138 Kalindi 2089 Avishar A7 4911 8367 279 Patuli 3456 Tolly Heights A8 2182 5554 186Shanti Neer 1642 M atala 1730ahamay Springdale A9 3 4261 142 899 T b 362olly Clu Liluah A10 2613 5222 174 Belur 2609 Ballygunge Circular Rd A11 1561 1561 52
  • 30. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 30 Optimesed Logistics Distribution PTIMISED LOGISTICS DISTRIBUTION AT DIFFERENT AREAS NODES AREA TRUCK NO G TIME(DC) D TIME (DC) IVAL TIME(AREA) WA TIME(A RN TIME(DC) O LOADIN EPARTURE ARR ITING RETU REA) Mani Sq T1 7:40 2:00 Hrs 12:30A1 4:15 6:15 Belur, Liluah 5 14:4 16:53 0:32 Hrs 18:00A10 12:4 5 Rash behari T2 9:00 11:30 13:05 14:45 Hrs 21:00A2 South T3 0 11:30 13:10 2:00 Hrs 21:00 City A3 8:3 Bangur, L.Town, Dumdu P.kan T4 5 6:1 8:25 1:30 Hrs 12:45 m, an A4 4:1 5 Bangur, L.Town, Dumdum, P.kanan (or A8) A4 13:30 15:30 17:10 1:30 Hrs 21:00 Belghoria, Dunlop, R.N.T A5 T5 4:45 6:45 7:55 1:00 hrs 13:00 Avishar, Patuli (or A3) A7 13:30 15:30 18:30 1:25 Hrs 21:00
  • 31. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 31 BT Rd, Kalindi 13:00 A6 T6 4:30 6:30 8:30 0:40 Hrs Mani Sq (or A2) A1 14:00 16:00 17:25 2:00 Hrs 21:00 Avishar, A7 T7 9:00 11:15 14:15 1:25 Hrs 21:00 Patuli T.Heights, T8S.Neer, M’Tala A8 8:30 11:45 14:15 2:25 Hrs 21:00 Sp’dale, b A9 8:00 11:15 13:05 1:20 Hrs 21:00 T’Clu T9 B.C.R A11 ---- ------- 14:10 0:18 Hrs -------- Belur, Liluah T10 A10 4:30 6:30 8:38 0:32 Hrs 10:20 S.City (or A2) A3 12:00 16:00 17:40 2:00 Hrs 21:00 OPTIMISED LOGISTICS DISTRIBUTION AT DIFFERENT AREAS ARE A TRU K NO AVG DESPATCHE S (50% 2 DES) TOTAL DESPATCHE S AVG KM/DA Y TOTAL(AVG) KM/DAY (10% TOTAL (AVG) KM NODES C ND MARGIN) /MONTH Mani Sq A1 T1 209 296 65 98+10% = 3240 108 Belur, Liluah A 50% of 174=87 10 33 Rash behari A2 T2 222 222 85 85+10% =93 2790 South City A3 T3 239 239 100 10 =110 3300 0+10%
  • 32. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 32 Bangur, L.Town, Dumdum, P.kanan A4 T4 320 480 58 116+10% =128 3840Bangur, L.Town, Dumdum, A4 50% of 320=160 58 P.kanan (or A8) Belghoria A5 T5 210 350 42 14 =169 5070 Dunlop, R.N.T 4+10% Avishar, Patuli (or A3) A7 50% of 279=140 102 BT Rd, Kalindi A6 T6 138 56 12 =133 243 1+10% 3990 Mani Sq (or A2) A1 50% of 209=105 65 Avishar, 79 Patuli A7 T7 2 279 102 102+10% =112 3360 T.Heights, S.Neer, M’Tala A8 T8 186 96 =106 186 96+10% 3180 Sp’dale, T’Club A9 T9 142 194 99 104+10% =114 3420 B.C.R A11 52 5 Belur, Liluah A10 T10 174 294 33 133+10% =146 4380 S. City A3 50% of 239=120 100
  • 33. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 33 VEHICLE UTILISATION REPORT(JULY-ACTUAL) SUM OF BALANCE 3294 ACTUAL VEHICLE NO TOTAL UTILISATION WB41C635 2781 93%7 WB41C6356 2 93%795 WB41C6355 2905 97% WB23A6763 2917 97% WB41C3310 2948 98% WB41C6543 2950 98% WB41C5938 2988 %100 WB41C593 2 100%7 999 WB41C9559 3050 102% WB23A5151 3097 103% GRAND TOTAL 29430 98% 2600 2650 700 2750 2800 2850 900 2950 3000 050 3100 W B41C63W B41C6356 W B 763 W B41C331W B41C63W B41C5938 W B 37 W B41C9559 W B23 2 2 3 3150 57 41C63W B23A6 55 0 43 41C59 A5151
  • 34. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 34 OPTIMISED VEHICLE UTILISATION REPORT SUM OF BALANCE VE TOT UTIHICLE NO AL LISATION T1 3240 108% T2 2790 93% T3 3300 110% T4 3840 128% T5 5070 169% T6 3990 133% T7 3360 112% T8 3180 106% T9 3420 114% T10 4380 146% GR 3657 122AND TOTAL 0 % 0 1000 2000 3000 4000 5000 6000 T1 T2 T3 T4 T5 T6 T7 T8 T9 T10
  • 35. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 35 Conclusion From the actual Vehicle Utilisation Report it is clear that highest achieved utilization is 103%.The procedure followed is as& when the vehicle is available is booked for the next required slot(despatch).Also the dispatch area is chosen randomly when demand arises although there are chosen delivery areas.There is no delivery forecast or schedule followed. For optimization I followed a chosen area approach in which nodes are tagged into areas as per geographical proximity.The route is also chosen as per Kolkata police data so that vehicle can reach destination in their defined route.The rule of thumb followed is the lowest the area distances from DC the vehicles are re utilized same day. Hence in this case the areas are prioritized for delivery in the morning so that vehicles can return to DC in time for next schedule the very same day.The areas which are distant from the DC are not chosen for re-scheduling same day cleary for NO ENTRY at city CHECKPOINT.In this way 5 areas namely A1,A4,A5,A6 &A10 are dispatched in the morning.This vehicles are re utilized in other areas and chosen accordingly so that total vehicle running Km gives more than 100% utilization factor.The optimesed highest achieved utilization is 169% and min is 93%.
  • 36. OPTIMISATION OF THE DISTRIBUTION N/W FROM DC TO STORES IN KOLKATA 36 Bibliography EBSITES VISITED shion.com/industry-article/free-retail-industry- article/indian-retail-industry-its-growth-challenges-and-opportunities/indian- Retail Outlets Address Sheet Vehicle Utilisation Report W 1) www.spencersretail.com 2) www.rpg.in 3) http://www.fibre2fa retail-industry-its-growth-challenges-and-opportunities1.asp 4) http://www.scribd.com/doc/5590611/Indian-Retail-Industry LOGISTICS DATA FOR JULY 1) Ware House (DC) Excell sheets A) Vehicle Running Time Management B) Vehicle Running Distance Management C) Total No of Despatches/day 2) 3)