"Efficient and Effective Logistics by way of On Time Delivery (OTD)- A study of Birla Uttam Cement"
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This document presents a project report on improving logistics efficiency at Birla Uttam Cement. The project aimed to identify gaps in the distribution system, assess on-time delivery performance, and find ways to reduce costs and improve customer delivery. Questionnaires were distributed to dealers, agents, and company staff. Major findings included issues like material shortages, vehicle availability, and long secondary distances from depots. Analysis showed secondary distance strongly impacted delivery costs. The report recommends a decentralized distribution system with multiple smaller depots to reduce distances and costs, improving on-time delivery to over 80%. Implementing the recommendations could save an estimated 10.5 million rupees annually in logistics costs.
"Efficient and Effective Logistics by way of On Time Delivery (OTD)- A study of Birla Uttam Cement"
- 1. A SIP PROJECT REPORT PRESENTATION ON “Efficient and Effective Logistics by Way of On Time Delivery” (A STUDY OF BIRLA UTTAM CEMENT) PRESENTED BY: RAVINDER DAHIYA (R600211047)
- 2. INTRODUCTION TO THE PROJECT The project was undertaken to find Logistics gap throughout the whole distribution system, To find the current status of the OTD service of the co., because it reflects brand image which is directly concerned to company market share, Where we can save logistics cost along with improved Delivery at customer end, What are the major causes which affect timely delivery service of the company, Possible solutions to make entire Logistics efficient & effective.
- 3. QUESTIONNAIRE DESIGN & SURVEY RESEARCH Three questionnaire was designed for each respondent. The targeted population was Dealers (comes under Jaipur 1 Depot), C&F Agent and responsible persons of the company. FILTER approach is used in designing questions i.e., general to specific. A Survey was Descriptive Conclusive type. The technique taken for sampling was Proportionate Stratified Sampling. T-test was conducted to test the difference of the mean of Average sales of Population & selected sample size.
- 4. ORDER STATUS By observing this graph we can say that timely delivery is affected by both works and fields problem, so we have to find gaps of not delivering material on time at both stations.
- 5. MAJOR GAP FINDINGS Problems at Works : Shortage of fly Ash & other raw material, Under load order size, Seasonality during crop farming, Poor demand by customer, Less attention on Road shipment during Rake loading etc. Problems at Field: Vehicle Unavailability, Labor unavailability or strike, Centralized Distribution system, Locational issues, Lacking in right number, type & mix of vehicles, More Secondary Distance from Depot, Govt. restrictions etc.
- 6. COMPARATIVE STUDY OF TPT MODE
- 7. REGRESSION ANALYSIS Regression Analysis was done to know the degree of correlation between Secondary Distance (Depot to destination point) and Secondary freight per bag. As I observed that the only controllable factor, as distance was concerned, was the secondary distance. By reducing this distance we can serve customers timely and ultimately better brand image in the mind of customer. Actually the radius of dispatching material from depot was 200 kms., much more than competitors. This higher distance causes more transportation cost and poor timely delivery service at consumer end. Secondary freight per bag was taken as dependent variable (Y) while Secondary Distance was taken as independent variable (X).
- 9. C&F COST STRUCTURE COMPARISON Rail Mode: Rake to Depot to Dealers movement Rail Mode: Rake to direct Dealer movement Road Mode: Plant to Depot to Dealer Movement
- 10. TRANSPORTATION COST- DISPATCH STRATEGY Current Delivery status from each source and associated logistics cost incurred
- 11. Optimum way of delivering material from each source to each destination, Monthly Saving = 90,000 p.m. Annual saving = Rs. 10,80,000 p.a.
- 12. DECENTRALIZED DISTRIBUTION SYSTEM Decentralized distribution system means, opening of more depot in the existed geographical area and then supplying material to the radius of not more than 40- 50 km from a particular Depot. This mainly aims to reduce secondary distance which has greatly influenced the total logistics cost per bag. By doing so material can also be delivered at customer end fast, i.e., improved OTD. Delivery from works via new presumed Depot (by road)
- 13. CONCLUSION & RECOMMENDATION Mainly the company facing serious problem in delivering material on time at consumer end, and hence market share compare to other brand is not reasonable, ultimately causes low customer satisfaction. Composite cost structure given to C&F Agent must be redesigned, which can save up to 9,40,000 p.a. from Jaipur 1 Depot only (in case of Rake). Dispatch strategy must be improved to optimum level as suggested by solving Transportation problem, which can save up to 10,80,000 per annum. OTD service can be improved up to 80% level by implementing Decentralized Distribution System (DCS), which can save huge total logistics cost of Rs. 85,72,800 p.a. Totally about 10.5 Million (per annum) Logistics cost can be saved if immediate actions will taken by top management surely.
- 14. Any Queries ??? . . . Thank You