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CHAPTER 1
INTRODUCTION
Fig. 1
Fig. 2
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Fig. 3
10
Fig. 4
MANPOWER PROFILE IN WAREHOUSING
Fig. 5
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BENEFITS OF KOJ
1. KOJ Values its people, through mission statement "Good people first". They
therefore reward them competitively.
2. They attract and retain the people responsible for the company's long-term growth
and profitability.
3. All employees are provided with the opportunity to contribute to its success by
offering a great working environment.
4. No one is discriminated on the basis of their background. They value Diversity.
Employment and Development is primarily on merit. By this KOJ provide equal
opportunity employment.
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5. For going the extra mile or having a brilliant suggestion, they reward their
employees through recognition and excellence awards
The Body Shop franchise is acquired and the first store is opened
1992
1994
1999
2002
2003
2006
2007
2008
The company was formed as one of the earliest Body Shop franchises internationally and
remains one of the most successful. Over the years the company has now become a
franchisee, franchisor and own brand channel organization.
This depth of skills and knowledge allows for rapid deployment of strategies and tactical
initiatives. The group employs over 2000 staff through seven countries. The staff
represents a true global index of nationalities from more than 50 countries worldwide.
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Transportation
Warehousing
Inventory/Stock control
Communication/Information systems
Packaging
Manufacturing management
Retailing
Forecasting
Materials management
Packaging
Property
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Quality
Order processing
Project management
Information technology
Governments
Welfare agencies
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technologies globally, and delivering comprehensive solutions that create value for 3PL
users and their supply chains. This need to partner with customers and become more
integrated into their supply chain processes has created the ancillary need to locate close
to these customers.
That isn't to say the need for easy access to transportation hubs and different modes of
transportation won't continue to be important. But the above shift in business strategy,
along with the advances in technology and enhanced communication, has opened the
door for logistics facilities to operate effortlessly in a myriad of locations.
Profit warnings, share price pressures, mergers, reorganizations, relocations, disposals,
painful layoffs and great geopolitical uncertainties can sweep away even the most
comprehensive logistics strategies and thats despite outstanding management over
many years. These are exceptionally difficult times and it has never been more important
to connect logistics and freight planning to executive board thinking than now. Its easy
to lose sight of the bigger picture in the rush to cut infrastructure cost and conserve cash.
Hopefully organization succeed in protecting the business, satisfying shareholders and
analysts, but what about capacity and flexibility, morale and momentum?
To be a logistics winner in the coming years organizations need to use the downturn to
reshape for growth, propelled by an unshakeable conviction that the mission is still
important, that more prosperous times lie ahead, and that in some way the company
infrastructure is helping to build a better kind of world.
Logistics is inevitable in the future and essentially the management policy also has a
significant role in the future of world. Generally the study is being featured with all
aspects of management in Logistics and Freight areas. (Logistics include Transportation,
Warehousing, Network Design, Cross docking, and Value Adding).
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To find out how the brands of KOJ reach from manufacturer to the
distribution centre
To know whether the customers are satisfied with the existing range of
service pattern
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CHAPTER 2
THEORECTICAL
ASPECTS OF THE TOPIC
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Fig. 6
Reduced lead time, inventories, lower operating costs, product availability and customer
satisfaction are the benefits which grow out of effective logistics and supply chain
management. The decisions usually carried on by KOJ, cover both the long term and
short term. Strategic decisions deal with the corporate policies, and look at overall design
and logistic chain structure. Tactical, Operational decisions are those dealing with
everyday activities and problems of the organization. Change is the inevitable factor for
each and every day situation within and outside the organization. The decisions must take
into account the strategic decisions already in place. Therefore organization must
structure the logistics ideas through long term analysis and at the same time focus on
every time situations. Furthermore, market demands, customer needs, transport
considerations and pricing constraints are the factors in order to structure the logistics,
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KOJ faces lot of ups and downs in each operation and improves operation on each
situation while dealing with each customer. KOJ dominant improvement methods used
are:
i. What are the customer expectations?
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Time - The time lags present in the supply chain, from supplier to user at every
stage, requires that you maintain certain amount of inventory to use in this "lead
time"
ii.
iii.
Economies of scale - Ideal condition of "one unit at a time at a place where user
needs it, when he needs it" principle tends to incur lots of costs in terms of
logistics. So Bulk buying, movement and storing brings in economies of scale,
thus inventory.
B. Back Order
A company having to back order an item that is out of stock will incur expenses for
special order processing and transportation. The extra order processing traces the back
orders movement, in addition to the normal processing for regular replenishments. The
customer usually incurs extra transportation charges because a back order is typically a
smaller shipment and often incurs higher rates. The seller may need to ship the back
ordered item a longer distance. The seller may need to ship the back order by a faster and
more expensive means of transportation. We could estimate the back order cost by
analyzing the additional order processing and additional transportation expense. If
customers always back ordered out of stock items, the seller could use this analysis to
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CHAPTER 3
RESEARCH
METHODOLOGY
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3.1 RESEARCH
Research means search for knowledge. It aims at discovering the truth. It is the search for
knowledge through objective and systematic method of find solution to problems.
Therefore research is a process of systematic and in-depth study or search of any
particular topic, subject or area of investigation backed by collection, computation,
presentation and interpretation of relevant data.
Research is necessary to examine the extent of the validity of the old conclusions or to
find out some new facts and generating new ideas in connection with the existing ones. A
research finding may give rise to new problems which may require further research. So a
research leads to another research.
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The person conducting the survey must introduce himself and the objects
of the survey. There must be a covering letter along with the questionnaire. The
letter should state the purpose of enquiry. It should assure the respondent that these
answers will be kept in strict confidence of questions.
2.
3.
4.
5.
6.
7.
As far as possible the questions should be such a nature that they can
answered
easily in Yes or No or in a number.
8.
9.
The questions should be such that they elicit the information required for
the study
of the problem.
10.
questionnaire itself.
11.
12.
3.7.3 ADVANTAGES
1.
There is low cost even when the field of enquiry is very large.
simultaneously.
4.
about a particular
type of problem since in the questionnaire various points can be included.
3.7.4 DISADVANTAGES
1. Most of the respondents are lazy and so they do not care to answer and return the
questionnaire.
2. The method will be successful only if the respondents are educated and
cooperative.
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3. 9 STATISTICAL TOOLS
Percentage Analysis
The purpose of using ratio or percentage is to simplify the problem of comparison.
Percentages reduce two distributions to a common base, thus make comparison
simple.
Bar Diagrams
A bar chart or bar graph is a chart with rectangular bars with lengths proportional to
the values that they represent. The bars can be plotted vertically or horizontally.
Pie Charts
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CHAPTER 4
ANALYSIS AND
INFERENCES
37
38
Sl. No.
Service
Percentage
1.
Freight
11.11
2.
Warehousing
33.34
3.
Shipping
40.00
4.
Network design
11.11
5.
4.44
Table 2
S e r v ic e s o ffe r e d
11.11
4.44
1 1.1 1
F re ig h t
W a re h o u s in g
S h ip p in g
3 3 .3 4
N e t w o rk d e s ig n
O t h e r va lu e a d d in g s e rvic e s
40
Fig. 7
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40
Sl. No.
Brands
Percentage
1.
8.89
2.
Mikyajy
42.22
3.
Ulle popken
4.
Nayomi
37.78
5.
4.44
6.
List
7.
Bebe
8.
All of these
6.67
Table 3
P ro fita b le B ra n d s
0
0
4.44
6.67
8.89
M ik y ajy
U lle popk en
N ay om i
The B ody S hop
37.78
42.22
Lis t
B ebe
A ll of thes e
Fig. 8
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42
Sl. No.
Countries
Percentage
1.
2.
0
28.89
3.
Russia
4.
Germany
2.22
5.
Italy
17.78
6.
France
17.78
7.
China
33.33
8.
Philippines
9.
Srilanka
10
All of these
Table 4
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Rus s ia
28.89
33.33
G erm any
Italy
F ranc e
17.78
17.78
China
2.22
P hilippines
S rilank a
A ll of thes e
Fig. 9
The pie chart above shows KOJs catering location in the world. Locations mentioned as
other is company catering frequently with repeat orders of customers. Around 33% of the
shipment is from China and from United Kingdom. Chart shows KOJ can enter European
markets and other favorable market is Africa. This can be looked into very seriously in
future business.
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Sl. No.
Service
Percentage
1.
Freight
11.11
2.
Warehousing
33.34
3.
Shipping
40.00
4.
Network design
11.11
5.
4.44
Table 5
1 1.1 1
4.4 4
1 1.1 1
F re igh t
W a re h o u s in g
S hip p ing
3 3 .3 4
N etw o rk d e s ig n
O the r va lu e ad d ing s e rvic e s
40
Fig. 10
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46
Rate
Freight
Warehousing
Shipping
Network Design
Any Other
(specify)___________
Table 6
R ate
9
8
7
6
5
4
3
2
1
0
Any Other
(specify)________
___
Network Design
Shipping
Warehousing
Freight
R a te
Fig. 11
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48
Country
Percentage
1.
Asia
2.
3.
Dubai
40
4.
Quatar
4.44
5.
Africa
6.
Abu Dhabi
7.
44.44
11.12
0
Table 7
C o u n try
1
2
3
4
5
6
7
Fig. 12
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50
Excellent
Ease
of
Service
Client
handling
Customer
Service
Website
Information
Employee
Efficiency
Good
Fair
Poor
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Very
Poor
0
Total
16
20
45
22
20
45
25
13
45
30
12
45
45
Table 8
120
100
E m p lo y e e E ffic ie n c y
80
W e b s ite In fo rm a tio n
60
C u s to m e r S e rvic e
C lie n t h a n d lin g
40
E a s e o f S e rvic e
20
0
E x c e llen t
G ood
F a ir
P oor
V e ry P o o r
Fig. 13
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Majority of the employees is in the opinion that ease of service in the company is fair.
They also rate client handling as fair. But the company is good at customer service, for
providing website information and also in employee efficiency. The overall performance
of the company is good..
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Elapsed time
2010-11
3
Table 9
E la p s e d T im e
5
4
3
E l a p s e d ti m e
2
1
0
2
Ye a r
Fig. 14
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The above chart shows the physical verification check and average elapsed time between
order receiving and delivery of the service. Average elapsed time between order
receiving and delivery of service has an average of 3 days. In 2009-10 average time
between the time of receiving order from the customer to your firm to release the item
from the ware house and the time the item is ready for moving from the ware house with
proper documentation is 5 days and in 2010 -11 its reduced to 3 days. Even though there
is shortage of stock, it meets its demand in time. It shows the efficiency of the company.
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55
Percentage
Yes
No
84.44
15.56
Table 10
1
2
Fig. 15
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Method
Rating
Phone Call
10
10
Gifts
10
Fax
Table 11
Customer Retention
12
Rating
10
8
6
Series1
2
0
1
Method
Fig. 16
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59
Percentage
Yes
No
100
Table 12
KOJ follows a proper system of handling customer complaints. The company always
tries to reduce the number of complaints. If any complaints arise it solves within a
minimum time. Listening to the voice of the customer and making process improvements
based on that feedback so that the same complaints dont recur.
A complaint is any measure of dissatisfaction with your product or service, even if its
unfair, untrue, or painful to hear!
Complaints may be about:
Personnel
Requests
Communication
Response Time
Documentation
Billing
Follow Up
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Percentage
Yes
No
100
Table 13
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CHAPTER 5
FINDINGS
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FINDINGS
The quality of service as rated is above average in the case of KOJ compared
to industry. But the organization should continuously try to improve the
quality aspect as is being done by other players in the field. This is quite a
necessity as otherwise the figures may fall down. Continuous improvement is
a must so that the customers or the distributors will prefer Kamal Osman
Jamjoom LLC as their first choice in Logistics industry category. This can be
achieved with more modern equipments and proper guidance to employees
and the rating can go high to excellent service.
There is a good relation between management and employees and they are
always trying to maintain that relation.
The company deals with branded and quality products so that it increases the
companys profit and reputation.
Network Design is an area that the organization should not start immediately
due to low rate of returns is recorded as the industrial average. Design of new
warehouse areas and proper allocation of work with more sophisticated
software facility can be done through outsourced way during implementation.
Decision making is excellent for organization and the employees done it very
well.
The management is always trying to keep environment clean and also take
quality check to meet the standard fixed.
Service offer presently has good impact with other organizations service
offers. The remarkable areas are Freight, Cross docking, and Value Adding.
Company can further enhance operations of Value Adding through proper
methods.
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The efficient methods for retaining customers are Phone, Email, Sales Agents
and least preferred methods are Fax and Gifts.
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CHAPTER 6
RECOMMENDATIONS
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RECOMMENDATIONS
Workers Participation in Management (WPM) helps to increase the commitment
of employees towards the organization.
Organization can initiate Human Resource Department to further enhance
employee motivation. This will have favourable impact for the operational as well
as total strenghtening of organization.
Organization can further strenghten the employee strength in the documentation
department. This can lead to further rapidity for operations.
Implement new brands in the market.
Better work environment like training, clarify doubts, air conditioner, recreation
facility etc. should be provided for every class of employees.
The performance of employee should be appraised in order to formulate proper
promotional policies and also to increase the scale of salaries and wages.
Increase the number of stores in accordance with the population.
In order to attract more customers new advertisement strategies should be implemented
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Client handling and service need to be followed in the same way and can be
further enhanced with more support. This can be achieved by proper guiding of
employees and other workers in the logistical area.
Quality of service can be further enhanced to increase customer delight.
KOJ can enter other markets into like kuwait,Behrain,Oman etc where the
potential of market is very high for Logistics industries and can even diversify to
other areas in logistics.
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CHAPTER 7
CONCLUSION
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Logistics is a process which interfaces and interacts with the entire company and with
external companies, vendors, customers, carriers and more. Logistics is responsible for
the movement of products from your vendors right through to the delivery at your
customer's door, including moves through manufacturing facilities, warehouses, and
third-parties, such as re packagers or distributors. It is not shipping and receiving, nor is it
traffic or warehousing. It is more.
Logistics must make work effectively. This is required by the customers and, in turn, by
the company. For effective logistics, there are five key issues
1. Movement of product.
This is often the way that logistics is viewed in many companies. Products moves should
complement the corporate strategy. If the emphasis is on cost reduction, lower
inventories, customer service or whatever, then products must move in a way that is
consistent with the emphasis. Product must also flow, not just move, from, to, between
and among vendors, manufacturing sites, warehouses and customers. If it does not flow,
then there is not a supply pipeline. Instead there are imbalances in inventories with
components and finished goods not being where they should be.The movement may be
extremely broad in geographical scope.
2.Movement of information.
It is not enough to move product and materials. We must know where they are. We must
know what inventories are where and if critical action is required. We must know what
orders are coming in and when they must be delivered. Information--timely and
accurate-- is vital for sound decision-making.The information must flow between the
company and its suppliers, carriers, forwarders, warehouses and customers. It must also
move internally among purchasing, customer service, logistics, manufacturing, sales,
marketing and accounting. And doing this goes beyond Email, faxes and phone calls.
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Conclusion
By doing this research, I am concluding that Kamal Osman Jamjoom, one of the
leading retailers in the Middle East is taking forward their logistics department in
the most efficient way resulting in cost effective modes and distribution of their
brands to their respective regions and stores. Employees are treated professionally
which is motivating them their by resulting in increase in productivity.
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BIBLIOGRAPHY
WEBSITES
http://www.kojhr.com
http://www.kojamjoom.ae/
http://en.wikipedia.org/wiki/Kamal_Osman_Jamjoom
http://www.youtube.com/watch?v=SKU7Qq0RJj0
http://www.kojfranchise.com/
www.wikipedia.com
INTERVIEWS
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ANNEXURE-1
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