Trapping exception and failure stories in hub operation quality issues.

School Of Business
PROJECT REPORT
TRAPPING EXCEPTION AND FAILURE STORIES IN HUB
OPERATION- QUALITY ISSUES.”
IN
SAFEXPRESS AMBALA
For The Partial Fulfillment of the Requirement for the Degree Of
“MASTER OF BUSINESS AND ADMINISTRATION”
SUBMITTED TO:
SCHOOL OF BUSINESS
ITM UNIVERSITY, GWALIOR (M.P)
SUBMITED BY:
SIDDHARTH BOLE
M.B.A (SCM) (6th tri-sem)
ROLL NO- MBAN1MG15085

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DECLARATION
I Siddharthbole (MBAN1MG15085) studentof MBA (SCM) VIth
trimester, hereby
declare that I have submitted my report on “Trapping exception and failure
stories in HUB operation- Quality issues.” This report is submitted by me under
the guidance of Mr. Ankit Singh, Mr. S.K.Yadav, and Prof. Somen Mitra (H.O.D)
of ITMUniversity. I havesubmitted this report for the partial fulfillment of the VIth
Trimester of MBA (SCM).
SIGNATURE
Siddharth bole
(MBAN1MG15085)

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CERTIFICATE
This is to certify that Siddharth bole (MBAN1MG15085) student of MBA
(SCM) VIth trimester has submitted his report on “Trapping exception
and failure stories in HUB operation- Quality issues.” For the partial
fulfillment of the VIth trimester of MBA (SCM) and submitted a satisfactory
report of the Project. This work has not been submitted in part or full to this
or any other university for the award of any degree or diploma to the bestof
knowledge. We wish them success in the future.
Signature
Prof. Somen Mitra
(H.O.D)

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ACKNOWLEDGEMENT
Thanking is formality and sometimes a necessity, nevertheless an essential part of
any project report. The list of expression of thanks no matter how extrusive is
always in complete and inadequate. This acknowledgement is no exception.
One of the best parts of writing a project report is the opportunity to thank those
who have contributed to it. This project report has been made possible through
direct and indirect co-operation of mentors. I especially with to acknowledge the
following people who reviewed the project. Thanks for the most perspective and
helpful comments.
I sincerely thank to Mr. Ankit Singh, Mr. S.k.Yadav” for his support and
Valuable Guidance & also express my gratitude for his precious help during the
entire training session.

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TABLE OF CONTENTS
1.INTRODUCTION TO LOGISTICS
• Objective of study
• Scope of the study
• Meaning of logistics
• Origin and definition of logistics
• Importance of logistics management
• Logistics management and supply chain
2. BACKGROUND OF SAFEXPRESS
• The company profile
• History of SAFEXPRESS
• Mission, vision of SAFEXPRESS
• Type of business
• Service of SAFEXPRESS
3. TRAPPING EXCEPTION AND FAILURE STORIES IN
HUB OPERATION- QUALITY ISSUES.
• Research analysis (fishbone diagram)
4. CONCLUSION.
5. BIBLIOGRAPHY.

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OBJECTIVE OF THE STUDY
The objectives of the Project are: PRIMARY OBJECTIVES
.
● Trapping exception and failure stories in HUB operation- Quality issues.
SECONDARY OBJECTIVE
● To know about Logistics Industries
● To know whether the customers are satisfied with the existing range of service pattern.
SCOPE OF THE STUDY:
In order to understand the concepts of logistics in terms of practical usage and to glimpse
into the how a real company or organization uses logistics as a formidable tool to gain
customer satisfaction, reduce overall cost and increase efficiency I selected
“SAFEXPRESS” the India leading courier Service Company. The study is done only how
SAFEXPRESS use logistics system effectively. There are following strength and weakness of
SAFEXPRESS.
COMPANY STRENGTHS
 Credit & Retail basis pricing strategy
 Good brand presence in India
 It has great amount of Creative Service ideas
 “Largest Logistics service Provider in India” by Limca Book of Records in 2002
 Has a reach to all 627 districts in 35 states and union territories in India
 It has more than 3600 GPS-equipped all-weather proof, containerized vehicles
COMPANY WEAKNESSES
 Marketing and advertising is lesser than global brands
 Lower adoption of advanced technology

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COMPANY OPPORTUNITIES
 Diversification in more innovative services
 Increasing firms in manufacturing industry
 It has 3600 weather proof ISO-9002 vehicles which can be used for increasing range of
services.
COMPANY THREATS
 Big competitors with advanced technology
 Unorganized transportation sector
 Entry and penetration of international players and domestic players

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INTRODUCTION
MEANING OF LOGISTICS:
Logistics is concerned with getting the products and services where they are needed and when
they are desired. It is difficult to accomplish any marketing or manufacturing without logistical
support. It involves the integration of information, transportation, inventory, warehousing,
material handling, and packaging.
The operating responsibility of logistics is the geographical repositioning of raw materials, work
in process, and finished inventories where required at the lowest cost possible. Logistics is
practiced for ages since organized activity began. Without logistics support no activity can be
performed to meet defined goal. The current challenge is to perform logistics scientifically in
order to optimize benefits to the organization. Logistics is a planning function of management.
Logistics function is concerned with taking products and services where they are needed and
when they are needed.
LOGISTICS MANAGEMENTS:
Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective, forward and backward (reverse) flow and storage of goods, services and
information between the point of origin and the point of consumption in order to meet customers'
requirements rather to the customers’ delight. A professional working in the field of logistics
management is called a logistician.
Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one's business with materials, and shipping out products in an
increasingly globalize supply chain, calling for experts in the field who are called Supply Chain
Logisticians. This can be defined as having the right item in the right quantity at the right time at

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the right place for the right price and to the right target customers (consumer); and it is the
science of process having its presence in all sectors of the industry. The goal of logistics work is
to manage the fruition of project life cycles, supply chains and resultant efficiencies. Logistics is
Concerned with getting (or transmitting) the products and services where they are needed or
when they are desired. It is difficult to accomplish any marketing or manufacturing without
logistical support. It involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging. The operating responsibility of logistics is the
geographical repositioning of raw materials, work in process, and finished inventories where
required at the lowest cost possible.
ORIGIN & DEFINITION OF LOGISTICS:
The term "logistics" originates from the ancient Greek "Zóyoç" ("logos"—"ratio, word,
calculation, reason, speech, oration"). 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 Logistic on. In ancient Greek, Roman and Byzantine empires, there were
military officers with the title‘s’ who were responsible for financial and distribution of supplies.
The Oxford English dictionary defines logistics as: “The branch of military science having to
do with procuring, maintaining and transporting material, personnel and facilities.”
The American Council of Logistics Management defines logistics as” the process of planning,
implementing and controlling the efficient and effective flow, and storage of goods, services and
related information from the point of origin to the point of consumption for the Purpose of
conforming to customer requirements.”
IMPORTANCE OF LOGISTICS MANAGEMENTS:
 Logistics is the bed rock of trade and business.
Without selling and or buying there can be no trade and business. Buying and or selling
takes place only when goods are physically moved into and or away from the market.
Take away logistical support trade and business will collapse
 Integrates logistical activities
In conventional management environment, various activities of logistics work in isolation
under different management functions. Each pocket trying to sub optimizes its objectives at
the cost of overall organizational objectives. Purchasing trying to purchase at minimum
price at the cost of what is needed by operations. Operations produce large quantities at
minimum production cost ignoring demand leading to doom inventory. Logistics function
of management brings all such functions under one umbrella pulling down inter
departmental barriers.

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 Competitive edge:
In the fiercely competitive environment logistics provides the edge. Due to technological
revolution most of the products are moving into commodity markets. In a commodity
market where price is controlled by competition, where there is no product differentiation
in terms of quality parameters like performance & reliability, where brands are almost
irrelevant, competitive edge is that of availability of product and service in terms of time,
place and quantity.
 Leads to customer satisfaction
Through superior customer service. Organizational objectives of P [Productivity],Q
[Quality],C [Cost],D [Delivery],E [Employee Morale],F [Flexibility],S [Safety],H
[Health],E [Environment] are set to meet customer expectations.
 Supports critical functions like operations and marketing
Strong logistics support enables a company to move towards JUST IN TIME production
system for survival in a highly competitive market
LOGISTICS MANAGEMENTS AND SUPPLY CHAIN:
SCM and logistics management, the definitions made by the Council of Supply Chain
Management Professionals, CSCMP (former Council of Logistics Management, CLM)
SCM is defined as “Supply chain management encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, and
all Logistics Management activities. Importantly, it also included coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third-party
service providers, and customers. In essence, Supply Chain Management integrates
supply and demand management within and across companies “Supply chains
encompass the companies and the business activities needed to design RFD n, make,
deliver, and use a product or service. Businesses depend on their supply chains to
provide them with what they need to survive and thrive. Every business fits into one or
more supply chains and has a role to play in each of them. The pace of change and the
uncertainty about how markets will evolve has made it increasingly important for
companies to be aware of the supply chains they participate in and to understand the
roles that they play. Those companies that learn how to build and participate in strong
supply chains will have a substantial competitive advantage in their markets. Supply
chain management is the coordination of production, inventory, location, and
transportation among the participants in a supply chain to achieve the best mix of

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responsiveness and efficiency for the market being served. There is a difference between
the concept of supply chain management and the traditional concept of logistics.
Logistics typically refers to activities that occur within the boundaries of a single
organization and supply chains refer to networks of companies that work together and
coordinate their actions to deliver a product to market. Also traditional logistics focuses
its attention on activities such as procurement, distribution, maintenance, and inventory
management. Supply chain management acknowledges all of traditional logistics and also
includes activities such as marketing, new product development, finance, and customer
service. In the wider view of supply chain thinking, these additional activities are now
seen as part of the work needed to fulfill customer requests. Effective supply chain
management requires simultaneous improvements in both customer service levels and
the internal operating efficiencies of the companies in the supply chain. Customer
service at its most basic level means consistently high order fill rates, high on-time
delivery rates, and a very low rate of products returned by customers for whatever
reason. Internal efficiency for organizations in a supply chain means that these
organizations get an attractive rate of return on their investments in inventory and other
assets and those they find ways to lower their operating and sales expenses.

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COMPANY PROFILE
Safexpress have a Integrated Logistics Management. It is our 3PL Product that
optimizes your company’s supply chain. First, we examine the linkages between your
suppliers, producers, buyers, intermediaries and end users in order to identify time and
cost inefficiencies. Next, we deploy our unique mix of local know-how, global practices
and cutting-edge technology to provide integrated supply chain solutions. These range
from specific services such as warehouse management, statutory compliance and
invoicing - to an entire gamut of third party logistics services.
Safexpress works and carries on the philosophy of 'Custodians First
Carriers Later’. We sincerely abide by our corporate philosophy on the subject.
Safexpress has an all risks cover - Carrier’s Risk offer, which unburdens the customer
of his worries of losses in transit. On minimal extra charge of Risk Charges, we cover
your valuable shipment against all sorts of transit losses including fire, flood, damage,
accident, shortage, etc.
The Latest of the material handling equipment are used at Safexpress' hubs to ensure
safety and remove Laxity from material handling. Equipment including hydraulic hand
pallet trucks, dock levelers, trolleys, fork lifts’ multilevel pallet stackers are used by
Safexpress. Chain Pulleys and Cranes handle consignments which are not possible by
smaller equipment’s to man oeuvre.
It might not be out of place to mention here all the hubs of Safexpress are on platform
level height. Any Logistician will understand and appreciate the essentiality and
importance platform level warehouses have for material handling.

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Pawan Jain
Chairman and Managing Director
Safexpress
Anil Sayal
General Manager
Safexpress
Safexpress started its business as a door-to-door service in 1995 with 4 routes, 9
offices, 12 container mounted vehicles and 20 employees.
Safexpress' door-to-door services include niche products like DOD and To-Pay
freight.
After one year i.e. in 1996 Safexpress opens super hubs at Delhi, Mumbai and
Bangalore.
Next year Safexpress launches Integrated Logistics Services. Our first ILS client is NIIT;
the first international ILS account is signed with Hilts from Europe. Spurred on by a
surging domestic economy, Safexpress extends its fleet to 250 and number of stations to
290. Safexpress Private Limited emerges as an independent entity

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Then in 1998 Safe air and Safe box are launched, setting a new standard in value added
cargo services. All hubs are connected through web-based software. In 1999 Having
grown by over 300%in 4 years without compromising quality, Safexpress is awarded the
Golden Peacock Award for quality and innovation in Logistics Management.
In 2000 Pilot run for GPS starts on 28 routes. Also Safexpress reaches the 350-
destinations mark and the fleet crosses 1400. Again 2001 Safexpress upgrades and
launches a whole lot of features on www.safexpress.com including ePod, Virtual Cargo
and Privileged Member.
In the year 2002, 2003 Safexpress was declared India's "Largest Logistics Service
Provider" by Limca Book of Records. In 2005 Safexpress bags the MICO: Power of We
Award for excellent service in logistics. In the same year Safexpress fleet crosses 3000
mark.
Next year in 2006 Safexpress was awarded by ADC Krone for providing best
logistics services and in same year Safexpress bags prestigious RAI's (Retailers
Association of India) Award for Best Logistics Service Provider.
HISTORY AND BACKGROUND OF SAFEXPRESS
 1995 Safexpress launches as a door-to-door service with 4 routes, 9 offices, 12
container mounted vehicles and 20 employees.
Safexpress' door-to-door services include niche products like DOD and
To-Pay freight.
 1996 Safexpress opens super hubs at Delhi, Mumbai and Bangalore.
 1997 Safexpress launches Integrated Logistics Services. Our first ILS client is
NIIT, the first international ILS account is signed with Hilt from Europe.
Spurred on by a surging domestic economy, Safexpress extends its Fleet to 250
and number of stations to 290.Safexpress Private Limited emerges as an
independent entity.
 1998 Safe air and Safe box are launched, setting a new standard in value added
cargo services. All hubs are connected through web-based software.

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 1999 Having grown by over 300% in 4 years without compromising quality,
Safexpress is awarded the Golden Peacock Award for quality and innovation in
Logistics Management.
 2000 Pilot run for GPS starts on 28 routes.
Safexpress reaches the 350-destinations mark and the fleet crosses 1400.
 2001 Safexpress upgrades and launches a whole lot of features on
www.safexpress.com including epod, Virtual Cargo and Privileged Member.
 2002 Safexpress declared India’s “Largest Logistics Service
Provider”
By Limca Book of Records 2002.
 2003 Safexpress declared India’s “Larges Logistics Service
Provider” by Limca Book of Records 2003.
Mr. Pawn Jain, CMD, Safexpress, becomes one of the finalists in the prestigious
Envy’s Entrepreneur of the year Award.
 2004 Safexpress inaugurated its 500th scheduled delivery location Safexpress
bags the Franchise Awards04 for excellence in Team Work.
 2005 Safexpress bags the MICRO: Power of We Award for excellent service in
logistics
Safexpress fleet crosses 3000 mark.
 2006 Safexpress awarded by ADC Krone for providing best logistics Services.
Safexpress bags prestigious RAI’s (Retailers Association of India) Award for
Best Logistics Service Provider.
MISSION, VISION & QUALITY OF SAFEXPRESS
MISSION
We shall adopt and internalize a work culture which demonstrates a "we can we will"
attitude to reflect in our daily responsibilities so as to far exceed our objectives,
consistently striving towards market dominance. We will create historical landmarks
forming a strong edifice for the future overcoming all obstacles pro-actively as our
personal responsibility and commitment to create delight for the customer with
impeccable personalized services.

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VISION
To be a conscious learning organization maintaining flexibility for change so as to
provide the most customized solutions. Striving towards global market share whilst
maintaining dominance in the domestic market through good HR practice and
excellent customer service.
QUALITY
“A quality service relies upon constant customer interaction and feedback.
An immediate response to the changing environment with pre-defined business processes
managed effectively and efficiently leads to the highest output from the lowest input and
this is the strongest measure of quality. The best certification of a quality organization is
the measurement of the scale of the smile on the customers face”
TYPE OF BUSINESS
Indian Economic Scenario today marks the emergence of total chaotic market with lot
of competitors, piling stock of products, lowering margins, taxation changes and more.
In the present situation what is needed to see the blue?
The ‘way to higher profits’ comes from streamlining the channels and outsourcing the
segment of business which is not the core focus or expertise of the company.
One such fragment of business model is Supply Chain. Being a medium of linking
product to market, a robust model of supply chain management ensures a better ‘TAT’
(turnaround time), low inventory holding cost and less of damages.
Over the time discipline of business logistics has advanced from the warehouse and
transportation dock to the boardroom of leading Global Enterprises.
Supply Chain has to be viewed not only as material and information pipeline but as
integration of logistics with the human factors that need more attention to be paid to
understanding, creating and managing demand more effectively.
Safexpress works on the Value Chain concept using a framework for examining
linkages between suppliers, producers, buyers, intermediaries and end users.
Safexpress, India’s leading logistics company offers Integrated Logistics Management,
Express, Air, Multi-modal, Door-to-Door, time definite delivery and consultancy
services. The company also offers e-logistics and customized solutions for e-business.

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SAFEXPRESS SERVICES
➢ EXPRESS
Safexpress service is an express service which involves movement of cargo in all-
weather proof sealed containers on feeder and express routes. The service is time definite
with a published transit schedule covering more than 550 destinations nationwide and
provides the flexibility for surface, air and multi-modal connectivity with a wide reach
associated with Indian airlines and air taxi operators such as jet airways, Sahara etc.
➢ DRAFT-ON-DELIVERY
Draft on delivery is an unparalleled value-added service wherein the seller can dispatch
goods through Safexpress to the buyer and be assured that the delivery would take place
only when the draft has been collected.
In the Safexpress DOD system pre-alerts are sent to the consignee to allow reasonable
time for the draft to be made, thus meeting the desired objective of express transit with
the amount ready for collection.
➢ ALL RISK COVER
The management of Safexpress hereby undertakes and declares that:
“The company would redeem the value of the loss in the uneventful case of any shortage
or damage to the consignment whilst in the custody of Safexpress, subject to the risk
charge having been paid by the sender or the recipient as per the company policy. The
amount corresponding to the loss as declared would be paid by the company to the
sender or the recipient as required without waiting for any request for the same.”
➢ SAFEBOX
The safe box comes in two convenient sizes of 17” x 17” x 12” and 16” x 12” x 9” easily
accommodating up to 20 & 10 kgs respectively of your cargo.
The robust design is further reinforced with internal insulation for safety of your cargo.
So you save on packaging cost and for a nominal amount it is ready for delivery with an
auto insurance up to Rs. 5000 absolutely free of cost.
➢ SAFEAIR
To ensure that time sensitive cargo reaches the destination through a faster mode meeting
all your requirements for the time definite deliveries. Safe air connects your cargo
through airlines, Atos and uses the services for morning and evening flights to provide a
wide variety of connectivity to suit different market cutoffs.

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➢ ILM
Safexpress works on the value chain concept using a framework for examining linkages
between suppliers, producers, buyers, intermediaries & end users.
Safexpress ensures the success of the entire chain, marrying local knowhow with the
best global practices, technology & perspective
➢ CONSULTING
Safexpress offers value added services beyond physical operations in the form of
logistics consultancy covering a wide spectrum of the Indian economy.
The company plays a pivotal role in guiding diverse market segments on existing and
recommended logistics models with various simulation modules to map transactions
using historical data and providing befitting supply chain solutions.

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PROJECT
Trapping exceptions and failure stories in HUB
operation-qualities issues.

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Ishikawa diagram
One of the Seven Basic Tools of quality
First describedby: KAROUISHIKAWA (Tokyo, Japan)
Purpose: To break down (in successivelayers of detail) root causethat
potentially contribute to particular effect.
Ishikawa diagram (also called fishbonediagram, herringbonediagrams,
cause- and-effect diagram, or Ishikawa) arecausaldiagramcreated by
Kaoru Ishikawa (1968) thatshow thecause of specific event. Common uses
of the Ishikawa diagraman overall effect. Each causeor reason for
imperfection is a sourceof variation. The categories typically include
 People: Anyone involved with the process
 Methods: How the process is performed and the specific requirement
for doing it, such as policies, rules, regulation and laws.
 Machines: Any equipment, computers, tools, etc. required to
accomplish the job
 Materials: Raw material, parts, pens, paper, etc. used to evaluate its
quality.
 Environment: the condition, such as location, time, temperature, and
culture in which the process operates.
There are four steps to using the tool.
1. Identify the problem.
2. Work out the major factors involved.
3. Identify possible causes.
4. Analyses your diagram.
And this method is particularly useful when you’re trying to solve
complicated problems.

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Explanation of the concept of fish bone/ Ishikawa diagram in HUB
operation?
There are situations where we need to analyse what caused a failureor
problem in a HUB operation. Fish bone or Ishikawa diagram is oneof
the importantconcept which can help you list down your rootcauseof
the problem. Fish bone was conceptualized by Ishikawa, so in the
honour of its inventor this conceptwas named as Ishikawa diagram.
Inputsto conducta fish bone diagram comes from a discussion and
brain stormingwith peoplewho wereinvolved in the project. The below
figuresshow how the structureof the Ishikawa diagram is. Below are a
few fish bonediagrams of HUB operation. The main bone is the problem
which weneed to addressand to know what caused the failure.
With the help of few pictures, this concept has been explained. It is not
my creation. However, I have donelittle effortto collect these pictures
from internet. I do not have any copy right on these pictures. Butwhat I
have observed in IndorewarehouseHUB I have explained and the
bottleneck werearising in the processI have tried my level best up to
best of knowledgeto solve the problem.

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I have figured out three factors in Indore Hub they are as follow.
1. Late delivery.
2. Lack of customer responsiveness.
3. Lack of technology. Customer lose/profit/poor
4. Lack of proper training. qual.
1. Late delivery

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In this the main causes in late delivery are.
• Shortage of vehicle.
• Late document generate in warehouse.
• Slow loading- unloading.
• Miscommunication under the team.
• Not able to handle large order.

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Lack of responsiveness to customer
The main causes regarding quality issue are as follow.
• Shortage of equipment.
• Not highly upgrade with technology.
• Not proper utilization of warehouse space.
• Poor handling of material.
• Wrong labeling.
• Shortage of efficient of MHE.
• Not able to use maximum height of building and space.
• Most of the works are manually handled.

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• Not having efficient software.
• Inspection is not proper.
• Lack of proper training to ground level worker.
• Not proper packing of material.
EFFECT
The effects of the above causes are as follow.
1. Lose to customer.
2. Decrease in profit.
3. Bad reputation in market.
4. Not able to meet deadlines.
5. Poorquality production.
6. Operating costof warehouse increases.
7. Not properbreaking of bulk and consolidation.
8. More time consuming.

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BIBLIOGRAPHY
a) Logistics and Supply Chain Management- Written by Donald Bowersox.
b) Indian Logistics Industry” Summit Sharma – co-founder of GOBOLT, a tech
logistics company.
c) BUSINESS LOGISTICS – BARDI
d) Elements of Logistics Management- S.D.APHALE
WEBSITES:
1. www.google.com
2. www.logisticmanagement.com
3. www.Wikipedia.com
4. www.safexpress.com
5. www.logisticworld.com

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