Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

Note: Solve BOTH case studies.

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

Case I DABBA A!!AHS O" M#MBAI $A%

Dabba was a generic, colloquial term use e!plicitly in Mumbai to escribe any cylin rical bo!. "n the conte!t o# meal house eli$ery ser$ice, a abba was an aluminum bo! carrie by its han le like a tin o# paint. %ach abba three to #our interlocking steel containers an was hel together by a collapsible metallic wire ay lunch. up a lunch)

han le. %ach o# these containers accommo ate an in i$i ual #oo item #oun in a typical mi in i$i ual who #ull the empty e$ening. eli$ere newspapers. (aken together, a an

&allah was a label #or a tra esperson in a particular pro#ession. 'or e!ample, a paperwallah was an abbawallah was a courier who picke the empty abba #rom a client*s home in the morning, le#t it outsi e o# the client*s workplace #or pick)up, retrie$e abba a#ter the lunch was consume returne abba to the client*s home in the

+n ,o$ember -, .00/, 0aghunath Me ge, presi ent o# the ,utan Mumbai (i##in 1o! Suppliers Charity (rust 2(he (rust3, ha just returne to his o##ice in suburban Mumbai a#ter meeting with 1ritain4s 5rince Charles who was on an o##icial $isit to "n ia4s commercial capital. (he (rust was the managing organi6ation o# the ser$ice, o#ten re#erre ars an acquire abbawallah meal eli$ery network. (he abbawallahs*

to as ti##inwallahs outsi e o# Mumbai, was cite

internationally by management schol) ser$ice management. (he ser$ice ha abbawallahs was

in ustry e!ecuti$es as an e!emplar o# supply chain an a reputation #or its

eli$ery reliability in Mumbai. "nternational interest in the

largely ue to a 1778 article publishe in 'orbes: Mumbai*s 9ti##inwallahs9 ha$e achie$e a le$el o# ser$ice to which &estern businesses can only aspire. in "n ia, but when the pro#it moti$e is ;%% ($, an their eli$ery

9%##icient organi6ation9 is not the #irst thought that comes to min work. Documentaries on the abbawallahs were pro uce

gi$en #ree rein, anything is possible. (o appreciate "n ian e##iciency at its best, watch the ti##inwallahs at by the 11C, M1: an per#ormance earne them recognition in the <uinness 1ook o# &orl 0ecor s an 0ipley*s 1elie$e "t or ,ot= Me ge, who ha personally emonstrate to 5rince Charles how the abbawallah meal eli$ery system

worke , was himsel# in the spotlight o# late. >e ha an (ies.9 >e was also approache itionally, he was aske

recently been in$ite

by the Con#e eration o# "n ian 9?ea ing &ithout Suits to present seminars on team

"n ustry to speak to its members at a lea ership summit in a special mo ule title by human resource e!ecuti$es an aske buil ing. @

by corporations, such as Siemens "n ia, to make a presentation to their

employees on the

abbawallahs* working practices. 'inally, he was also regularly sought by the print an

tele$ision me ia within an outsi e o# "n ia. (he abbawallah ser$ice ha begun in#ormally in 1870 in Mumbai. @ccor ing to Me ge:

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

@ 5arsi banker working in 1allar #etch his lunch e$ery

5ier employe

a young man, who came

own #rom the 5oona

istrict to

ay. 1usiness picke

up through re#errals an

soon our pioneer

abba)carrying

entrepreneur ha to call #or more helping han s #rom his $illage. Such was the origin o# the abbawallahs. >owe$er tri$ial the task may soun , it is o# $ital importance since ha$oc is cause i# the client ha to skip his home)cooke hour= 1y the early .0th century, people #rom all parts o# "n ia were migrating to Mumbai in large numbers. +nce they #oun a source o# li$elihoo an settle own, they wante an teste , an home)cooke #oo at their workplaces. >ome)cooke #oo ha a com#ort le$el #or $arious reasons. 'irst, the #oo was prepare in the ambience o# a omestic kitchen, with recipes that were trie cooke #oo per abba #or their eli$ery ser$ice. &orking in epen ently an in small groups #or eca es, the abbawallahs ha unite in 17AB to put in 17AC as a that resulte in #amiliar #are. Secon , home ) was comparati$ely ine!pensi$e. (he abbawallahs were initially charging two annas per month #oo or worse, carry the abba himsel# in the e$er so crow e Mumbai trains uring the rush

together a ru imentary co)operati$e. (his umbrella organi6ation was o##icially registere abbawallahs employe bicycles an pushcarts. (hese coul abbawallahs woul collect the #ees #rom their clients e$ery month an in 178/ when the (rust a opte ispense with an eli$ery boys to carry their ab bas an

charitable trust un er the name ,utan Mumbai (i##in 1o! Suppliers Charity (rust. @t that time, some o# the transport them along their routes on

pay the boys whate$er they to recei$e

negotiate with them. (his change

an owner)partner system. Dn er abbawallahs starte

this new system, the practice o# subcontracting was were traine abbawallahs.

equal earnings. (he eli$ery boys* system was con$erte into an apprenticeship system wherein new recruits #or at least two to three years on a #i!e remuneration be#ore they became #ull)time about

1y .00/, more than A,000 abbawallahs worke un er the aegis o# the (rust. (ogether they eli$ere 1-A,000 lunches aily in Mumbai 2see %!hibit .3. (hey ser$e a total area that co$ere kilometres 2lan3 o# public transport. (he per ay. Despite the sheer number o# abbawallah business generate

appro!imately -A

appro!imately 0s/80 million per by the me ia numbere one

annum. <i$en the two)way route #or each abba, the number o# eli$eries worke out to more than /A0,000 aily eli$eries, the #ailure rate reporte in two months, or one in e$ery 1A million eli$eries. The Nutan Mum&ai Tiffin Bo' Su((lie)s Cha)it* T)ust (he (rust was responsible #or managing the o$erall meal among the abbawallahs, an eli$ery system. "t worke in close co)or ination to the with the Mumbai (i##in 1o! Suppliers* @ssociation, a #orum that pro$i e #inancial nee s o# in i$i ual opportunities #or social interactions

the Dakkhan Ma$le Sahakari 5atpe hi, a cre it union that catere

abbawallahs by pro$i ing personal loans. <i$en its charitable trust status, the

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

(rust was also in$ol$e

in community initiati$es by pro$i ing #ree #oo

an

accommo ation to low)income

#amilies at some pilgrimage centres. (he (rust ha a three)tier structure: %!ecuti$e Committee, muka ams an by a muka am. >a$ing risen #rom the ranks o# the the sorting o# the abbawallahs. Dn er this between #i$e an eight abbawallahs, a muka am*s

structure, the basic operating unit was the team. %ach team, which comprise abbawallahs, was hea e primary per#orme aily responsibility in$ol$e

abbas. >owe$er, as team lea er, the muka am

se$eral a ministrati$e tasks that inclu e

maintaining recor s o# client payments, arbitrating

isputes between abbawallahs an customers, an apprentice training. ,umber o# Eear 1700 170A 1710 171A 17.0 17.A 17/0 17/A 17B0 17BA 17A0 17AA 17C0 17CA 17-0 17-A 1780 178A 1770 177A .000 .00/ Dabbawallahs A8 -A 1B. .0B /.1 B0C7A 1,0.B 1,.0C 1,-1A .,10C .,AA. /,.1C B,B0C B,C0A B,70B A,A11 A,A.B A,10. A,180 A,1CB A,1B. ,umber o# Customers 1,BBA 1,7CA B,1.0 C,A0B 7,C-A 1.,1B0 ..,8CA /B,./0 B.,/B0 CB,.B0 8.,000 10A,1.0 1B0,000 178,100 1-C,0B0 .1A,000 .-A,0-A 170,CBA 1/0,8C0 1B.,.C0 1CA,C-0 1-A,0B0

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

(he muka am was also in charge o# acquiring new clients #or the team an managing customer satis#action. ,ew customers purchase their abba #rom the abbawallahs when ser$ice was commence . Dabbas were their e##orts an constitute a pro#it centreF each pro#it ealing with emergencies 0s/A,000, co$ering the typically replace , at cost to the customer, once e$ery two years. Se$en to eight muka ams typically aggregate centre was re#erre such as autonomously, its members steppe to as a 9group.9 (here were about 1.0 groups in total. &hile each group was manage in without hesitation to help other groupsG in

abbawallah absenteeism. Monthly group maintenance costs totalle

maintenance o# the bicycles, pushcarts an woo en bo!es the abbawallahs use in their aily eli$eries. (he 1/ members o# the %!ecuti$e Committee, which were electe or inate by the general bo y e$ery #i$e years, co) ecisions #or the

the acti$ities o# the $arious groups. (he Committee, which un ertook all major

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

(rust an

worke

on the principles speci#ie ominate

in the Co)operati$e Societies @ct, met on the 1Ath o# each each meeting*s agen a. %!amples o# such issues inclu e abbawallahs parke their pushcarts or bicycles where abbas. "n such instances,

month. +perational issues typically to them by the (rust, an

isputes with the Mumbai city railways o$er abbawallahs not carrying their monthly passes or the "D issue with the city police when parking was not permitte . @nnually, there were #ew reports o# lost or stolen clients were reimburse by the in i$i ual abbawallah or gi$en a #ree abba. (he abbawallahs were a homogenous group in many ways. "ts members, tra itionally male, haile #rom the same geographical regionknown as Ma$la)"ocate spoke the same language 2Marathi3. (hey share east o# the Sahya ri 2&estern <hats3 near 5une, an they similar customs an tra itions, such as gathering together ress, a loose white hoti shirt,

#or a week e$ery @pril #or a #esti$al in their hometown. (hey wore the same cotton pajamas an their tra emark white o$al cap.

@ll o# these combine to #orm a istinct local i entity #or the abbawallahs. (hey were easily recogni6e e$en in the busiest o# locations. 5e estrians an work ethic. (hey ascribe commuters yiel e to the abbawallahs in or er not to inter#ere with their ser$ice eli$ery. Seemingly always in a rush, the abbawallahs were known #or their reliability an to the tra itional "n ian belie# that 9work is worship.9 @$eraging AA years in age, physically #it. &hile the minimum le$el o# e ucation o# a 0sC,+++. +ut o# this income, each abbawallahs were typically lean, agile, acti$e an %ach abbawallah earne

abbawallah was gra e se$en, most ne$er got past gra e eight schooling. a monthly income between 0sA,+++ an abbawallah was responsible #or paying: 0s. 1.0 #or the monthly railway pass that allowe #or unlimite access to Mumbai*s railwaysF 0s. C0 #or the maintenance o# the bicycle or the pushcart 2which were owne an the compulsory monthly contribution o# 0slA to the (rust. DABBA (he an A!!AH M+A! DIST,IB#TION N+T O,by a combination o# a 9baton relay system9 in eli$ery process an a 9hub one at speci#ic railway locations #rom where istribution by the group or pro#it centre3F

abbawallah meal

istribution network was characteri6e o## between abbas was

which

abbas were han e

abbawallahs at $arious points in the

spokes9 system in which the sorting o#

in i$i ual spokes branche

out #or istribution. (here was no local historical mo el on which this eli$ery processes ha eli$ery ha largely remaine unchange

network was esigne . @ll esign ecisions were ri$en by the singular purpose o# eli$ering a abba in time #or the customer*s lunch. (he the use o# computers. Acco)ding to Medge: H"# we were to use computers, we. woul be out o# business. "t is not because we o not know how to use computers but the system itsel# is not amenable to the use o# technology in whate$er #orm. since their inception e$en i not rely on though the en$ironment o# ser$ice change . 'or e!ample, the eli$ery system

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

(he only major change in the common i enti#ication that all &e eci e to

abbawallahs*

eli$ery mo el was the #ine)tuning o# the co ing system in to grow, an without some #orm o# #ollow, the sorting process at the hubs was likely to each group was #ree to e$elop its own

17CC. (he number o# customers using the

eli$ery ser$ice ha continue

abbawallahs coul

become o$erly time)consuming. Me ge obser$e : ecentrali6e the co ing at the le$el o# groups an on simple an co ing system base e$elope its own easily i enti#iable numbers an signs. "n time, each group gra ually

istincti$e color co e)#rom a spectrum o# combinations o# the se$en primary colors)

ser$ing as the #irst line o# i enti#ication #or any abbawallahI. (he work ay #or a abbawallah starte with the #irst eli$ery pick)up at 8:/0 a.m. ?ea$ing their Mumbai punctually to the minute at the oorstep o# typically be

home, most o# the time by bicycle, the

abbawallahs arri$e

each collection point, although they might not be wearing a watch. (he collection point woul the client*s home. Customers were aware o# their responsibilities in the the abba was not rea y #or pick)up, the abbawallah simply mo$e aily abbawallah was personally responsible #or the eli$ery o# /0 to /A onF the abbawallah i

eli$ery process. %ach knew that i# not wait. %ach that abbas. Dabbawallahs #oun

number to be usually manageable in terms o# personal memory an physical han ling capacity. 8:.A a.m. (he abba is #ille with lunch at the client*s kitchen an kept outsi e the oor o# the resi ence. 8:/0 a.m. (he abbawallah arri$es, picks up the abba an mo$es on knocking at the oor only i# the abba is not seen. Dn er normal circumstances there is no interaction with any member o# the client*s househol . 8:/8 a.m. (he customers. 7:.0 a.m. 1icycles an pushcarts rawn by in i$i ual abbawallahs arri$e #rom $arious collection centres to accor ing to estinations an place in cartages B8 the suburban railway station. 7:/0 a.m. (he sorting operation begins with that are speci#ic to each abbas each. 7:B1 a.m. (he suburban train arri$es. (he cartages, normally numbering #i$e to si!, are loa e special compartment locate ne!t to the ri$er*s cabin. 10:.1 a.m. (he train arri$es at one o# the major hubs. (he cartages are unloa e arri$ing #rom other collection centres. (hey are resorte accor ing to estinations. 11:0A a.m. Cartages are loa e into the suburban train #or onwar journey to the #inal estination terminals. 11:BA a.m. (he suburban train reaches the terminal station. Cartages are unloa e sorte , now accor ing to speci#ic eli$ery routes. 1.:1 0 p.m. Dabbas are place in estination)speci#ic cartages an hitche typically on to bicycles or pushcarts #or eli$ery to in i$i ual clients. 1.:/0 p.m. (he abba is eli$ere at the oorstep o# the client*s workplace. (he eli$ery process is re$erse in the a#ternoon. (he empty abba is picke up between 1: 1A p.m. an .:00 p.m. #or its return to the client*s home early that e$ening 2e.g. by A:/0 p.m.3. an abbas are re) an bun le with those into the abbas sorte estination. (he cartages come in two stan ar si6es, accommo ating .B an abba is place on the bicycle or pushcart together with abbas collecte #rom other

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

(he hub was essentially a mi )point station in the suburban railway network where trains con $erge branching out to other parts o# the city. Da ar, 1an ra, @n heri an abbawallahs* meal mo$ing #rom one en also places where rapi istribution network 2see %!hibit A3. @s epicentres that ha o# the city to the other, the hubs were crucial links in the eli$ery errors coul to be passe

be#ore

Jurla were the #our major hubs #or the through while by eli$ery system. (hey were

take place. (hat was why each o# the hubs was acti$ely manage

the muka ams, who steppe

in to co)or inate the sorting operation at each hub. @s trains kept arri$ ing in unloa ing) uring Mumbai*s rush hour when thousan s o# commuters were abbawallahs ha

succession, it became imperati$e to orchestrate three acti$ities)sorting, loa ing an

simultaneously. Doing so was a challenge

also getting on or o## each train. <i$en the tight time sche ule #or Mumbai*s railways, the to complete their tasks quickly an precisely. 'rom these hubs, the sorte city railway)where a thir $arious terminals an street, buil ing an abbas spoke set o#

out to $arious estinations)inclu ing the terminal stations o# the abbas were o##)loa e at

abbawallahs was waiting to take o$er. (he abbas were then han e by han

re)sorte ,

epen ing now upon speci#ic customer location in#ormation, such as the o$er to the #ourth set o# han lers, in i$i ual abbas coul esignate

the #loor. (he

abbawallahs, who were assigne to speci#ic eli$ery routes in Mumbai city. 5lacing the abbas on pushcarts or bicycles, or in some cases carrie weigh up to 100 kilograms3, the recipient by 1.:/0 p.m. @n hour or two later, the empty pick)up))were collecte at the source by one abbawallah, unloa e by a #ourth combination o# abbas roppe o## by the satiate client at the same spot use an loa e #or abba up or in crates on top o# their hea s 2a #ull crate o# eli$ere the home)cooke lunches to the abbawallahs

to be route an re)sorte

backwar s on their return journey. "n short, each at the hub or ay $arie estination station by a thir abba was picke with the $olume an

abba was picke

abbawallah #or transport to the railway terminal, sorte

by a secon eli$ere ay. (he e!act

abbawallah an

abbawallah to the home #rom which the abbawallahs use each

up earlier in the

ensity o# tra##ic, but it remaine

the same on the return route. Since each abba tra$ele through #our sets o# han s each ay, it was important to i enti#yG an monitor the abbas while in transit. (his was e!terior. (he originating station an that any sorter coul the abba originate one through a system o# co es painte the on the top o# each abba*s estination station were the primary co es. (hey were crucial #or they were normally i enti#ie symbols 2e.g. by alphabets street ots, etc.3, abbawallah abbas ata inclu e the apartment, #loor, buil ing an ashes,

the sorting operations that took place at each o# the hubs, an recogni6e. (he other enco e #rom an was to be eli$ere

to. (he co es inclu e an un erstoo

alphabets, numbers an

other #orms o# notation which likely ma e little sense outsi e o# the abbawallahs recogni6e

community, but which the

instantly. (he mo$ement o# the

was monitore solely through these co es an client names were not utili6e . 5ulling one abba asi e, Me ge e!plaine :

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

(he co es 9J)1+)"+)17K@K1A9 on top o# this abba mean the #ollowing: J was the abbawallah who picke it upF 1+ meant 1ori$ali, the area #rom where the the estinationF 17K,1A re#erre abba was collecte F "0 re#erre to the ,ariman 5oint area, eli$ere itF an 1A was to the 17th buil ingF @ was the abbawallah who

the #loor o# the buil ing where the customer*s workplace was locate . .uestions: /. Comment on ho0 follo0ing issues ma* &e affecting the da&&a0allah s*stem: Com(etition and )esulting sh)in1 in custome) &ase !ifest*le Changes o)1fo)ce Management

2. Ho0 do the da&&a0allahs find )ec)uits3 4. Ho0 can an incentive s*stem &ased on 5e6ual (a* fo) all5 0o)13 7. Do the da&&a0allahs 1no0 thei) clients3 8. Ho0 does the da&&a0allah s*stem ensu)e that the individual lin1s in the delive)* net0o)1 do not &)ea1 do0n3 9. Ho0 is the T)ust dealing 0ith the issue of g)o0th3 :. Ho0 is the T)ust co(ing 0ith da&&a0allah com(etito)s3 ;. The 0o)ld a)ound *ou is changing &ut the da&&a0allahs have not changed< 0h* not3 =. Is the)e a futu)e fo) Da&&a0allahs3 />. "ollo0ing a)e the foundations fo) the success of the da&&a0allah se)vice !o0?Cost Delive)* Delive)* ,elia&ilit* Decent)ali@ation Su&u)&an ,ail0a* Net0o)1 Ae)ceived +6ualit*.

Bustif*.

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

CAS+ II !OCISTICS O#TSO#,CINC Com(an* A)ofile "n ian Steels ?imite en$isage 2"S?3 is a 0s. C000 crore company establishe in the year 178C. (he company cost e##ecti$e merger being a continuously growing top class company to itsel# well an is sai eli$er superior quality an

pro ucts #or in#rastructure company has establishe

e$elopment. &ith major customers being #rom 5ublic Sector Dn ertakings, the to be consi ering its e!pansion plan an propose

with another steel making giant in the country. "n 177C, owing to the cut throat competition in the emerging both e##ecti$eness an ynamic global markets, "S? emphasi6e on

e##iciency. (he company strongly belie$e irection. "S? out source

in #ocusing on it s core competency 2i.e. other warehousing ser$ices to a

manu#acturing o# steel3 an outsourcing the rest to its reliable partners. +utsourcing o# its outboun logistics was one such mo$e in this bi its stockyar s an thir party calle Consignment @gent, who was selecte on an annual basis through a process o# competiti$e ing. (he C@ was responsible #or the entire market segment an was pai istribution o# the pro ucts within the geographical limits o# in maintaining long)term relationships with the important customers o$er the allotte by the company accor ing to the loa s o# transaction 2measure the nee s o# its regular an

in metric tonnes3 others an

ealt by him. (he company also belie$e

suppliers as well as the buyers. "t always prioriti6e this worke the company has a apte

out to be a win)win strategy. (he case brings out the mo el o# outsourcing logistics #or the enhancement o# its supply chain competency an thus le$eraging more on

its core competency which le to increase pro ucti$ity. "n ian Steels ?imite en$isage 2"S?3 is a 0s. C000 crore company establishe in the* year 178C. (he company cost e##ecti$e

being a continuously growing top class company to

eli$er superior quality an

pro ucts #or in#rastructure

e$elopment. (he company per#orme with a mission to attain - million ton liqui e!pansionF to pro uce steel &ire 0o s to qualityF an ams an to meet the aspirations o# the stakehol ers. (he @ngles, 5ig "rons3 1eams an bri ges. (hese pro ucts were mainly supplie

steel capacity through technological up)gra ation, operational e##iciency ari with international stan ar s o# cost an pro uction starte in the year 1788 an that were mainly use initially, it manu#acture

#or constructing roa s3

5ublic Sector Dn ertakings such as 0ailways, 5ublic &orks Department 25&D3 Central 5ublic &orks Department 2C5&D3 0ashtriya Setu ,igam ?imite , @u yogik Jen ra :ikas ,igam ?t . an units. (he company ha its hea quarters at 0aipur with three stockyar s 2a kin lan to store the pro ucts3. (he company has establishe itsel# well an is sai to be consi ering its e!pansion plan an propose $arious #oun ry o# warehouse with a huge

merger with another steel making giant in the country. (he company was awar e o# the township, thanks to the greenery being maintaine therein.

"S+ 7001, "S+ 1B001

an "S+ 18001 certi#ications. (he temperature in the plant premises is reporte ly about CLC lesser than that

10

Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

!ogistics Outsou)cing +utboun logistics which basically connects the source o# supply with the sources o# eman an eman with an

objecti$e o# bri ging the gap between the market

capabilities o# the supply sources was always

a problem #or companies operating in this in ustry. Consisting o# components like warehousing network, transportation network3 in$entory control system an supporting in#ormation systems outboun logistics was always playing a key role in making the right pro uct a$ailable at the right place, at the right time at the least possible cost. "n 177C owing to the cut throat competition in the emerging ynamic global markets, "S? emphasi6e on both e##ecti$eness an e##iciency. (he company strongly belie$e in #ocusing on its core competency 2?e. manu#acturing o# steel3 an outsourcing the rest to its reliable partners. +utsourcing o# its

outboun logistics was one such mo$e in this irection. 0ecogni6ing the growing eman #or its pro ucts #rom the big, i$ersi#ie an geographically isperse

customers, the company starte stockyar s was manage re#erre by a thir

e!pan ing the number o# warehousing stockyar s. 'rom a humble party, which the company re#erre to as Consignment Agent 2herea#ter ing process.

beginning, the company to ay has .C stockyar sF most o# them are outsource . %ach o# the outsource to as C@3 in the area. (he C@ was selecte on an annual basis through competiti$e bi

(he per#ormance o# C@ was closely monitore geographical limits o# the allotte transaction 2measure into @, 1an

by a company representati$e 2#ull time employee o# "S? istribution o# the pro ucts within the &as pai by the company accor ing to the loa s o#

working in the site o# C@3. (he C@ was responsible #or the entire market segment an in metric tonnes3 ealt by him. 1ase

on their sales turno$er C@s were tri#urcate

C categories. (he C@s with a monthly turno$er o# 0s. 1A0).00 crore #ell un er @ category3

whereas those with 0s. 100 ) 1A0 crore were 1 an less than 0s. 100 M crore were C category. "n a ition to the company representati$e3 a team o# marketing sen ing to the manu#acturing plant. Material i$ision operate in the town where, the eman , translating it into

site o# C@ was locate . (his or ers an

epartment was responsible or estimating the #uture ispatch was

one using either one or a

combination o# the two mo es: 0ail, 0oa . &hile using rail as the mo e o# transportation, the company ha a choice to book a Normal Rake 2a #ull train with about /A wagons, each wagon with an appro!imate capacity o# C0 tonnes3 or a Jumbo Rake 2a #ull train o# about A. wagons, each wagon with an appro!imate capacity o# C0 tonnes3. @t times, the company was engaging the ser$ices o# the C+,C+0 2Container Corporation o# "n ia3 where a train o# C. to -0 wagons, each wagon with about .C tonnes capacity was use #or transportation. "nstea , i# the company between (railor 2.A)/0 tonnesN an the quantity o# ispatch. @s soon as the material was ispatche #rom the manu#acturing plant, the respecti$e C@ use to get a Stock Transfer Chalaan electronically through Virtual Private Network which was so#tware ser$ice pro$i er. "n)transit, monitoring was generally mo e was 0ail. +therwise, truckKtrailor ri$ers were contacte e$elope by a pro#essional one with the help o# "n ian 0ailways, i# the through mobile phone. (ransit generally took eci e to sen the material by roa , the company ha a choice on (ruck 21A).0 tonnes3. (he choice o# transportation mo e was base

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Subject: Supply Chain Management.

The Indian Institute Of Business Management & Studies

Marks: 100

#i$e to si!

ays, pro$i ing time #or C@ to plan #or recei$ing materials. (he C@ use e$ices like hea$y cranes an require

to utili6e this time #or was

arranging material han ling warehousing norms o# "S?.

labour. (he material thus unloa e

reaching the warehousing stockyar (he company broa ly classi#ie were #urther classi#ie #or this purpose. &hile sur#ace an thus re uce

where C@ was responsible #or arranging the materials as per the Roun"s# 5ro ucts #alling into each category a istinct colour co e #or this $in System that C@ arrange until in ownloa ing. (he company use

materials into !ong Pro"ucts an utility an a speci#ic place #or

by their si6e, shape an

the company use

purpose. %ach subcategory o# material ha #or pro$i ing %unnagt &aterial# (his enable an authori6e

ownloa ing the material in stockyar , the company norms insiste the C@ to store material without 1 to come an collect it. &hile the probability o# material eterioration. Material was store

irect contact with the lan in the stockyar ispatching material to the the nee s

representati$e o# the customer use

customer, a !oa"ing Slip was generate

against the %elivery 'r"er# (he company9 also belie$e

maintaining long)term relationships with the suppliers as well as the buyers. "t always prioriti6e o# its regular an important customers o$er others an this worke out to be a win)win strategy.

+perational problems were majorly because o# uncertainties in transportation, #luctuation in supply o# electricity an encountere new C@ an the loa bearing capacity o# the soil in the stockyar . Some: more problems were C@ responsible #or the: material in his stockyar to #or si! months a#ter the by whene$er there was a change in C@ an these were o$ercome by training the employees o# the keeping the ol

contract as well. +bser$ations re$eal that, at times there were situations wherein C@s ha to o those things which they were not legally suppose political lea ers with sel#ish interests. Despite these problems, this mo el o# outsourcing logistics was working out $ery well #or the company. (he practices, which were starte being practice in the year 177C ha$e sustaine major changes in the en$ironment an are e$en in .00C. "t has enhance the supply chain competency o# the company by enabling it o 2like subcontracting3 because o# the pressures mounte

le$erage more on its core competency, which lea s to increase pro ucti$ity. /. 2. Anal*@e the case in vie0 of the logistics outsou)cing ()actices of the IS!. Discuss the im(o)tance of logistics outsou)cing 0ith )efe)ence to su((l* chain management. 3. Suggest st)ategies fo) fu)the) st)engthening the su((l* chain of IS!.

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