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Project Report

On

Inbound Logistics
Lead Time Analysis
Submitted by
Name: Akshay Khashu
Reg No: 201222881
Submitted to SCDL

In partial fulfillment of the requirements for the award of degree of

Post Graduate Diploma in


Business Administration
NO OBJECTION CERTIFICATE

This is to certify that “Akshay Khashu” is permitted to use relevant data/information of this
organisation for his/her project as a partial fulfillment of the Post Graduate Diploma in
Business Administration (Specialization – Operations Management) Programme. We wish
him/her all the success.

Signature of the competent authority

Inbound Logistics Lead Time Analysis Page 2


DECLARATION

This is to declare that I “A


Akshay Khashu” have carried out this project work myself in part
fulfillment of the Post Graduate Diploma In Business Administration (Specialization :
Operations Management) Program of SCDL.

The work is original, has not been copied from anywhere else and has not been submitted to
any other University/Institute for an award of any degree/diploma.

Date: Name: Akshay Khashu

Signature: Reg No: 201222881

Inbound Logistics Lead Time Analysis Page 3


CERTIFICATE OF SUPERVISOR

Certified that the work incorporated in this Project Report on Inbound Logistics Lead Time
Analysis submitted by Akshay Khashu is his original work and completed under my
supervision.

Material obtained from other sources has been duly acknowledged in the Project Report

Signature of Guide

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Table of Contents

S. No. Contents Page No.

1 Executive Summary 6

2 Objectives 9

3 Introduction 11

4 Research Methodology 38

5 Findings & Analysis 48

a. Inbound logistics Lead time analysis- Port to Port. (Sea 49


Transport)
b. Custom clearance and its lead time analysis 67

c. Warehousing Details and Charges 74

d. Inbound logistics Lead time analysis- Port to Plant. 81


(Road transport)
e. Total time analysis 86

6 Recommendations 89

7 Conclusion 94

8 References 96

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Executive Summary

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EXECUTIVE SUMMARY

INTRODUCTION
The length of the performance cycle is a major difference between domestic and global
operations. Instead of 1 to 5 days transit time and 2 to 10 days total performance cycles, global
operation cycles often require weeks or months. The reasons leading to longer order cycle to
delivery cycle are communication delays, special packaging requirements, ocean freight
scheduling, slow transit time, customs clearance and etc. In this project the various delays
caused while importing the raw materials for Berger Paints has been depicted and how the
delay time can be reduced to minimum has been proposed.

AIM AND OBJECTIVES:


The main aim of this project is to analyze the total lead time for importing raw materials for
Berger Paints from 17 different countries to its 7 different plants. And also to project the
delays caused during its transportation and how it can be reduced to minimum.

METHODOLOGY:
To meet the research objectives, following activities have been performed.
1. An extensive search of relevant literature from news articles, internet, books. This step
guided the development of the methods and instruments for collecting data.
2. Survey has been carried out by face to face interviews with different agencies.
3. The Survey was included both by quantitative, forced-choice or close ended questions,
qualitative and open-ended questions. Analysis was done on the basis of the
information gathered at the time of interview.

FINDING AND RECOMMENDATION:


In this project the total importation of raw materials for Berger Paints has been depicted into
four different sub structures:
Inbound logistics Lead time analysis- Port to Port. (Sea transport).
Custom clearance and its lead time analysis.

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Warehousing Details and Charges.
Inbound logistics Lead time analysis- Port to Plant. (Road Transport).

And the lead time has been projected along with the various delays which increases it.

Then a total Time Analysis is done considering all the above four processes and
recommendation is given how the total delay can be reduced and the whole process can be
more smoothly handled and efficiency can be increased while having cost effectiveness.

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Objectives

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OBJECTIVES

“Knowing is not enough; we must apply.


Willing is not enough; we must do.”- Johann Wolfgang.

PRIMARY OBJECTIVE:-

Inbound logistics Lead time analysis (Port to Port):- Here we try to analyze time
taken for importing raw materials of paints for Berger Paints from Source Countries to
3 different ports (Kolkata Port, Chennai Port, and Mumbai Port) of India.
Inbound logistics Lead time analysis (Port to Plant): - Here we try to analyze time
taken for road transportation of the raw materials from the three different Ports
(Kolkata Port, Chennai Port, Mumbai Port ) to the seven different Plants of Berger
Paints.

SECONDARY OBJECTIVE:-
Identify the following:-
Custom clearance analysis and its delays.
Warehousing Details and Charges.

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Introduction

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INTRODUCTION
PAINT

Paint is any liquid, liquefiable, or mastic composition which after application to a


substrate in a thin layer is converted to an opaque solid film.

Paint is a pigmented material which when applied to a surface forms a solid opaque
coating under normal conditions of atmospheric temperature or elevated temperature.
It can be used as a protective coating or decorative coating.

PURPOSE OF PAINT:
Paints are used mainly for four reasons:
To protect the surface.
To decorate the surface.
To hide the surface.
Aesthetics & Identity

COMPOSITION OF PAINTS:

Paint is composed of pigments, solvents, resins, and various additives. The pigments give the
paint color; solvents make it easier to apply; binder help it dry and bind the paint; and
additives serve as everything from fillers to ant fungicidal agents. Proper paint formulation
requires suitable selection of solvents, pigments, binders and some additives.

The important features required for each of these components will be discussed below.

COMPONENTS OF PAINT

Pigment Binder Solvent Additives

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The important features required for each of these components will be discussed below.

PIGMENT:
By pigments we mean the insoluble solid substances, supplied in fine particles sizes which
give the dried paint film its desired color and other optical properties and also to confer
increased hardness, durability and protective properties. Pigments have also been found to
affect the consistency and the application properties of the paints consistency and the
application properties of the paints considerably.

Factors influencing the properties of pigments:


Color: Clean, bright and intense, reproducible hues are most important for all
pigments. The basic hues of the pigment have been found to be determined by its
chemical composition, whereas modification of brightness, cleanliness and intensity
are affected by the refractive index differences.

Crystal habit and crystal modification : crystal defects and ,modification of crystal
lattice patterns influence pigment characteristics. Where multiple lattice structure
exists for a given pigments, controls must be exercised during formation to obtain the
proper crystal habit and thereby to prevent incorrect hue and other unwanted pigment
properties.

Particles size: hiding power of a pigment depends primarily upon the ability of the
dispersed particles to scatter light. Tinting strength is also related to the particle size
and approaches a maximum at similar values for some inorganic pigments and at low
particle sizes for carbon blacks.

Particle shape: the shape of pigment particles has also been shown to influence paint
properties, especially with respect to flow and settling, and in some instances paint
film durability. Pigments particles generally exist in three different shapes, namely
nodular, acicular and laminar. In the nodular form, particles are more or less spherical.
In the acicular shape, the particles are needle like. They have been assumed to have an

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advantages effect on the mechanical properties of films due to their reinforcing effect.
Laminar shaped pigments are also known as flake, leaf or scale pigments.

Surface area : knowledge of surface area of pigments particles is essential, it varies


with the type of the pigments and the methods used for their preparation. In order to
achieve satisfactory performance properties of the films surface must be wetted
properly by a vehicle to achieve complete dispersion.

Oil Absorption: it is defined as the amount of oil in gms. required by 100 in gms. of
pigment to form a pasty mass. The rate of oil absorption varies from pigment to
pigment depending on their particle size and surface nature. This information is
important while formulating paint.

Bulking Value: Bulking value of a pigment is defined as the number of liters occupied
by 100 kilogram of pigment. This gives idea about the volume occupied by a given
weight of pigment.

Corrosion inhibiting properties: some pigments are used in corrosion inhibiting


primers because they produce such conditions, which would prevent or retard
corrosion. Some pigments, produce an alkaline condition, which retards the conditions
for corrosion. They would also neutralize the acids of the medium and other acids
which cause the corrosion. Sometimes soaps have water repellent properties and
therefore would decrease the absorption of water by the coating and thereby retarding
the condition for corrosion .Certain pigments have a passivating action by providing
ions which react with metal and reduce its tendency to corrode.

BINDER OR VEHICLE:
Binder, which is also called Vehicle or medium for paints, is the firm forming material; which
binds the pigments and keeps them in suspension in a film. These clear media are of
considerable importance, since they control to a great extent many of the fundamental
properties of the coating. Te ease and manner of application ; speed of dying under various

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conditions and properties like protection against corrosion and resistance to different
chemicals are all largely dependent on the other type of medium used.

SOLVENT:
It might be assumed that because the solvents paint is ultimately lost through evaporation,
their importance is small relative to that of the other ingredients. In practice, considerable
knowledge of the properties of the volatile ingredients of paints is essential in order to
formulate the wide variety of finishes.
ADDITIVES: -
Besides the three main categories of ingredients, paint can have a wide variety of
miscellaneous additives, which are usually added in very small amounts (1 - 4 gm in 100 gm
of paint) and yet give a very significant effect on the product. Some examples include
additives to modify surface tension, improve flow properties, improve the finished
appearance, increase wet edge, improve pigment stability, impart antifreeze properties, control
foaming, control skinning, etc. Other types of additives include catalysts, thickeners,
stabilizers, emulsifiers, texturizers, adhesion promoters, UV stabilizers, flatteners (de-glossing
agents), biocides to fight bacterial growth, and the like.They are available in all stages of paint
making -

Processing : Wetting, Dispersing agents

Application : Thixotropic Additives (for making thick structure prevents sagging)

Storage : Anti- skinning agents

Performance : Biocides

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FLOW SHEET SHOWING THE PRINCIPLES OF PAINT MAKING

PIGMENT MEDIUM OR SOLVENT ADDITIVES


VARNISH

GRINDING
EQUIPMENT

DRYERS

MIXER STAINER

QUALITY CONTROL

FILLING

DESPATCH

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Painting Surface

Painting surface

Masonry Metal Wood

External Internal

Factors of good Paints

Factors

EXTERNAL INTERNAL

Rain Protection Sheen

UV\Sun light resistance Washability

Algal resistance Stain resistance

Dirt pick up resistance Fungus resistance

Salinity

Temperature variation

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THE INDIAN PAINT INDUSTRY

The size of the paints market in India is estimated at Rs 110 bn, with the contribution
of the organized and unorganized segments in the ratio of 65:35.
.
The paint market is expected to grow at 8 to 10 % p.a over the next few years. The
growth could be higher if industrial activity picks up as the industrial paint segment is
gaining more importance .

Paints can be broadly classified as decorative and industrial on the basis of the end use.

The Indian market is dominated by the decorative segment which comprises almost
70% of consumption as compared to developed countries where the industrial segment
is more dominant. The ratio is India is also likely to shift more towards industrial
segment, especially with growth in the auto and white goods industry.

Over the last five years the excise rates have come down drastically from 40% to 18%
resulting in erosion of the unorganized sector’s share.

The paint industry is characterized by low fixed assets intensity but high working
capital intensity. The main investments are in brand building and distribution
infrastructure.

New trends are emerging in technology and marketing. Introduction of TINTING


MACHINE at the dealer / retailer level will bring down working capital costs. Also
new technology is being used for increasing the utility and lifespan of paints.

Indian industry will have to keep pace with global technological changes to maintain their
competitiveness. Already a few alliances have been entered into and the number is likely to
increase in the future.

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The outlook for the industry is positive especially given the good prospect for automotive and
white goods industry. Moreover, housing is expected to grow rapidly on the back of rising
incomes and government incentives. The supply situation remains a cause for concern and will
keep prices under check. The key to success will be innovative marketing.

INDIAN PAINT INDUSTRY

DECORATIVE PAINT
INDUSTRY
INDUSTRIAL PAINT
INDUSTRY

NOTE: DECORATIVE PAINT INDUSTRY (70%).


INDUSTRIAL PAINT INDUSTRY (30%).

The decorative segment dominates the market in India with a 70 % share with the rest
accounted for by industrial paints. This as compared to the developed countries where the
share is the reverse with the industrial segment being the major one .With increased
industrialization , the ratio in India is also likely to change in the favor of industrials and both
segments are likely to be equal partners by the end of five year

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THE PAINT MARKET SEGMENTATION

ON PRODUCT LINES:

Decorative or architectural paints


Decorative or architectural paints cover mainly the housing sector.

Decorative or architectural paints can be differentiated into

Premium segments: - (40%) Premium decorative paints are acrylic emulsions used
mostly in the metropolitan cities.

Medium segments: - (40%) The medium range consists of enamels, popular in smaller
cities and towns.

Distemper segments :-( 20%) Distempers are economy products demanded in the
suburban and rural markets.

Decorative paint segment : ON PRODUCT LINE

Premium segment: Metropolitan


cities
Medium segment: Smaller cities
& towns
Distemper segment: Suburban &
Rural market

NOTE: Decorative paints sold in India covers 40% Premium segment, 40% Medium segment
and 20% of all are Distempers segment and it is here that the unorganized sector has
dominance.

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Industrial paints
Industrial paints cover mainly the automotive segment.
Industrial paints can be differentiated into:
Automotive Paints - 50%
High Performance Coating - 30%.
Powder Coating - 10%
Coil Coating - 5%
Marine Paints - 5%

Industrial paint segment: ON PRODUCT LINE

Automotive Paints
High Performance Coating
Powder Coating
Coil Coating
Marine Paints

NOTE: Industrial paints sold in India covers 50% Automotive paints , 30% High performance
coating paints ,10%Powder coating paints, 5%Coil coating paints , 5% Marine coating paints.

ON MARKET SEGMENTATION:
Decorative or architectural paints:
Decorative paints can be differentiated into:
Decorative Paints Segment Market Size In Rs (Million)
Enamel 8600
Wall finishes 4730
Primers 2150
Wood finishes 430
Total 15910

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8600

9000
8000
7000
4700
6000
5000
2150
4000
3000
430
2000
1000
0
Enamel Wall finishes Primers Wood finishes

Market size in Rs (million)

Industrial paints:
Industrial paints can be differentiated into:
Industrial Paints Segment Market Size In Rs(Million)
Auto 4386
CRP 1075
Powder 860
Coil 94.6
Others 731
Total 7147

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4386

4500

4000

3500

3000

2500

2000
1075
1500 860 731
1000 94.6

500

0
Auto CRP Powder Coil Others

Market size in Rs (million)

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COMPANY PROFILE

INTRODUCTION:
Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger,
who through his marvelous shades, had offered people a chance to transform their homes
through the power of imagination. At Berger it is believed in taking paints to the level of fine
art. Enriched by the imagination of Lewis Berger since 1760.

COMPANY BACKGROUND:
Berger Paints India has reported a sales turnover of Rs. 491.87 crore and a net profit of Rs.
37.02 crore for the quarter ended Jun 2010.

For the quarter ended Jun 2009 the sales turnover was Rs. 372.63 crore and net profit was Rs.
28.38 crore.

Berger Paints India Limited (the Company) is ranked no. two in terms of volume and no. three
in terms of value in Indian paints industry. The Company has a 19% market share in the
decorative segment which accounts for a bulk of its volumes. Berger paints enjoys good brand
equity in lower priced paints and has market domination in the east. The Company’s
production facilities are situated all across India; enabling it to cater to all the major regions.
The Company is a part of the UK Paints group, India.

COMPANY HISTORY:
1923 - The Company was incorporated on 17th December, in West Bengal. The Company
manufacture and sell paints, varnishes, dry colours, enamels, pastes, distemper, ships paints,
boiler components and various other kinds of paints to meet the requirements of trade,
commerce and industry. Some of the brands manufactured are Castle, Parrot, Duroglaze,
Luxol, Murisan, Synthetic, Soligum, Apexior, etc.

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1975 - The Protection Paints division was launched to specialize in heavy duty paints required
to with standex acting conditions of high chemical and atmospheric corrosion in chemical
process industries and other allied industires and installations.

1986 - The Company concluded a technology agreement with Vaspa Corporation of U.S.A.
for manufacture of highly anti-corrosive coatings.

1995 - The Company proposed to set up a new factory at Pondicherry with an installed
capacity of 18,000 tpa of paints, enamels and varnishes and 6,000 tpa of synthetic resins. It
was also proposed to augment the existing powder manufacturing capacities at theplant in
Howrah.

2001 - Berger Paints India Ltd. has unveiled a new brand promotion strategy which it claims
to be the first of its kind in the industry.

- Despite a slight increase in sales, the net profit of Berge Paints India Ltd has dropped
by around 10 per cent for the half-year ended September 30, 2001.
- Berger Paints Ltd and ICI Ltd, have formed a 50:50 joint venture to manufacture auto
and industrial coatings at Rishra in West Bengal.

2006 - Berger Paints India Ltd has entered into a Joint Venture Agreement (JV) with Nippon
Bee Chemical Co Ltd of Japan for the purpose of formation of a Company for manufacture
and sale of coatings for plastic substrates used in automobiles and parts thereof in India.

2007 - Berger Paints India Ltd has entered into a Joint Venture Agreement (JV) with Nippon
Bee Chemical Co Ltd of Japan for the purpose of formation of a Company for manufacture
and sale of coatings for plastic substrates used in automobiles and parts thereof in India.

2008 - Berger Paints India Ltd has informed that Mr. Gerald Kenneth Adams has been
appointed as a Director of the Company effective January 30, 2008.

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2009 - Berger Paints India Ltd has informed that Mr. Pulak Prasad was appointed an
Additional Director (non-whole time) of the Company under Section 260 of the Companies
Act, 1956.

2010-Even as it considers an acquisition proposal, Berger Paints India (BPIL) is rapidly


completing a slew of greenfield and brownfield projects which will double its capacity by
2015, besides enabling it to set up its biggest capacity within two years. It is also planning to
revive the proposal to set up an automotive paint unit at Jejuri near Pune in Maharashtra.

BERGER PAINTS FACTORIES:


- PONDA (GOA)
- JAMMU(J&K)
- VALLAB VIDYA NAGAR ( GUJRAT)
- DEVLA (U.P.)
- PONDICHERRY
- HOWRAH (West Bengal)
- RISHRA (WEST BENGAL)

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THE MAJOR BRAND DETAIL OF BERGER PAINTS

Berger color bank offers an excellent range of products that appeal to the discerning
householder as well as the budget conscious individual keen on stretching the rupee. The
range of products available are mentioned below. The products are available in 1 liter , 4 liter,
10 liter and 20 liter containers.

SOME OF THE WELL KNOWN BRANDS OF BERGER PAINTS:


INTERIOR FINISHES FOR WALLS

NAME DESCRIPTION COVERAGE


LUXOL SILK SPLENDOR Premium silk with excellent richness and high 20-28 m^2/ltr/coat
durability. Has a sheen finish.

Rangoli fashion finish Rich acrylic emulsion with a matt finish 24-26m^2/ltr/coat

Luxol gold luster finish Premium quality semi glossy synthetic enamel 12-14m^2/ltr/coat
for kitchens, toilet and hotels.

Bison super distemper Premium quality acrylic distemper with matt 12-14m^2/ltr/coat
finish

INTERIOR FINISHES FOR METAL SURFACES

NAME DESCRIPTION COVERAGE

Luxol gold enamel Super premium , durable , glossy synthetic 18-22m^2/ltr/coat


enamel for furniture grills, windows etc.
Luxol gold luster finish Premium quality semi glossy synthetic 12-14m^2/ltr/coat
enamel for windows , grills, etc

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INTERIOR FINISH FOR WOOD SURFACES

NAME DESCRIPTION COVERAGE


Wood keeper melamine A unique two pack for cold catalyzed wood 9.5-15.5
finish coating system . m^2/ltr/coat

Woodkeeper clear finish A polyurethane enriched clear wood finish 9.5-


specially for hard working wooden surfaces. 15.5m^2/ltr/coat.

EXTERIOR FINISHES FOR WALLS

NAME DESCRIPTION COVERAGE

Weather coat classic smooth 100% acrylic, tough paint 13-15m^2/ltr/coat

Weather coat classic texture Tough exterior paint with textured 7-9m^2/ltr/coat
surface
Walmasta classic Economy acrylic emulsion 10-11m^2/ltr/coat

EXTERIOR FINISHES FOR METAL SURFACES

NAME DESCRIPTION COVERAGE


Luxol gold enamel Super premium , durable glossy synthetic 18-22m^2/ltr/coat
enamel for windows,grills etc.

Luxol gold lusture Premium quality , semi glossy synthetic 12-14m^2/ltr/coat


enamel for kitchens ,hotels balcony ,
staircases ,etc .

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PRIMERS AT A GLANCE

NAME DESCRIPTION COVERAGE


Color bank all purpose Available in both water and solvent 8 to 9 m^2/ltr/coat
primer thin able versions. Surely the best
primer available for any surface
walls or wood.

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MAJOR RAW METERIALS IMPORTED

RAW MATERIAL SCENARIO:


The paint industry is raw material-intensive, in terms of value and quantity of raw materials
used. Raw material costs account for around 70% of total production costs. Imports
constitute around 30% of the raw material requirements.

70% of total Production Cost


is of Raw Material Cost
30%

70%

IMPORTED RAW METERIALS AND COUNTRIES FROM:

METERIAL COUNTRY FROM


SYIA195NX795 BELGIUM (PORT ANTWERPEN)
NATROSOL 250HHBR BELGIUM ( PORT ANTWERPEN)

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BELGIUM:

METERIAL COUNTRY FROM


1.MATT HARDNER CHINA
(PORT ZHANJIANG)
THROUGH MALAYSIA
2.CMC BONDWELL CHINA (PORT XIAMEN)
THROUGH MALAYSIA
3.TITANIUM DIOXIDE ANATASE CHINA (PORT SHANGAII)
4. ADDITOL(P964), CHINA(ZHANJIANG)
SYNTHACRYL-700 THROUGH MALAYSIA
5.MODIFIED PHENOLIC RESIN CHINA(HONGKONG)

6.IRON OXIDE RED, CHINA( PORT ZHANJIANG)


IRON OXIDE ORANGE THROUGH MALAYSIA
7.CALCINED KAOLIN CHINA
(INNER MOGOLIA CLOSET- PORT
TIANJIN)
8.C9PETROLEUM CHINA(ZHANJIANG)
RFESIN N100 THROUGH MALAYSIA

GERMANY: -

METERIAL COUNTRY FROM


PENTAERYTHRITOL GERMANY (PORT BREMERHAVEN)
ALPASTE SRAPA , GERMANY (PORT BREMERHAVEN)
METALLIC R-274,
STD AL POWDER,
AL PASTE
VESTANAT T 1890L, GERMANY (PORT HAMBURG)

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POLYOIL
CARBON BLACK , GERMANY (PORT KIEL)
PRINTEX,
LAMPBLACK101BEADS.
TITANIUM DIOXIDE RUTILE GERMANY (PORT KIEL)
KRONOS
BAYSILONE PAINT ADDITIVE, GERMANY(PORT BREMEN)
SOLIGEN STABILIZER

TEGO PHOBE 1401, GERMANY (PORT BREMERHAVEN)


ADHESION RESIN
BLANC FIXE SUPER "F" GERMANY (PORT KIEL)
ALUBRIGHT 3900 GERMANY (PORT BREMERHAVEN)
SILRES BS-1360 GERMANY (PORT BREMERHAVEN)
TYLOSE HS 10000 GERMANY (PORT HAMBURG)

JAPAN:-

METERIALS COUNTRY FROM


DURANATE 22A75PX,
DURANATE TPA 90SB,
ALUMINIUM PASTE 970519, JAPAN(OSAKA)
ALUMINIUM 7130N,
ALUMINIUM PASTE 7640NS

TITANIUM DIOXIDE RUTILE CR50 JAPAN (OSAKA)


HEXA HYDRO PHTHALIC ANHYDRIDE JAPAN (TOKYO)

METHYL ETHYL KETOXIME JAPAN (OSAKA)

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JORDAN:-

METERIAL COUNTRY FROM

CALCIUM CARBONATE JCFS JORDAN (AMMAN)

NITHERLANDS: -

METERIAL COUNTRY FROM


URALAC P4055, NETHERLANDS
URALACP5127, (AMSTERDAM)
URALACP4140,
URALACP5201
SETALLUX NETHERLANDS
(PORT MOERDIJK)

SINGAPORE:-

METERIAL COUNTRY FROM


TEXANOL SINGAPORE

SICOTRANS REDL-3035, SINGAPORE


SICOTRANS YELLOW
1916,REDL- 2817
METHYL METHACRYLATE SINGAPORE

SURFYNOL 104 SINGAPORE


ACRYSOL RM 825 SINGAPORE
ROPLEX HG-706 SINGAPORE

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SOUTH KOREA:-

METERIAL COUNTRY FROM


HIQUE332 SOUTH KOREA (YEOSU)

TIWAN:-

METERIAL COUNTRY FROM

PARAFORMALDEHYDE92 PCT TIWAN (TAICHUNG)

SPAIN:-

METERIAL COUNTRY FROM


METHYL ISO BUTYL KETONE SPAIN (BARCELONA)

SWEDEN:-

METERIAL COUNTRY FROM

BERMOCOLL EHM-200 SWEDEN(LYSEKIL)

TRIMETHYLOLPROPANE SWEDEN(LYSEKIL)

THILAND:-

METERIAL COUNTRY FROM


CRYLCOAT-2441 THILAND (BANGKOK)
EPOXY RESIN EPOTECYD 127, THILAND (BANGKOK)
EPOXY RESIN PROTECYD901X75,
EPOXY RESIN EPOTE YD 903
CRYLCOAT-1510 THAILAND (BANGKOK)

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TIWAN:-
METERIAL COUNTRY FROM
PARAFORMALDEHYDE92 PCT TIWAN (TAICHUNG)

U.A.E.(SHARJAH):-

METERIAL COUNTRY FROM


EPOXY RESIN UAE(SHARJAH)

ZINC DUST STANDARD-7 UAE(SHARJAH)

UNITED KINGDOM :-

METERIALS COUNTRY FROM


BENTONE-27, MPA 60, BENTONE38,
BENTON"EW", BENTONESD-2, RHEOLATE- UK(LONDON)
278, BENTONE SD-3

USA: -

METERIAL COUNTRY FROM


RUTILE TI PURE USA(PORT WILMINGTON)
TIXOGEL-MP USA( PORT SAN FRANCISCO)
CUMARR-29 USA(PORT PITTSBURGH)
TROYKYD D-666 USA(NEW JERSY) NEAREST PORT NYK

VIETNAM:-

METERIAL COUNTRY FROM

GUM ROSIN "WW" GRADE VIETNAM (HO CHI MINH CITY)

Inbound Logistics Lead Time Analysis Page 35


TIME SHEDULING

TOTAL TIME ALLOTED: 8 WEEKS ( 2 MONTHS)

Stages Activities Number of Number of Days


Days Planned Actual Work

STAGE1 Knowing the Paint industry, Company profile & 7 DAYS 5 DAYS
selecting the Project title from Berger Paints.
STAGE 2 Gathering information on Raw materials imported 4 DAYS 5 DAYS
from different Countries and Plant locations of
Berger Paints.
STAGE 3 Visiting Shipping Agents for information on 14 DAYS 16 AYS
Inbound Logistics Lead Time Analysis For Port to
Port Importation.
STAGE 4 Visiting Custom Clearance officer for information 8 DAYS 5 DAYS
on Custom Clearance of Imported goods.
STAGE 5 Visiting Ware Housing Companies for 10 DAYS 11 AYS
Warehousing details and Charges.
STAGE 6 Visiting Road Transport Agents for information on 10 DAYS 14 DAYS
inbound logistics Lead Time Analysis for Port to
Plant Importation.
STAGE 7 Preparing the Project Report 7 DAYS 6 10 DAYS

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TIME SHEDULING GRAPH

18

16 16

14 14 14

12
11
10 10 10 10

8 8
7 7
6
5 5 5
4 4

0
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 STAGE 7

NO. OF DAYS PLANNED NO. OF DAYS ACTUAL WORKED

Inbound Logistics Lead Time Analysis Page 37


Research Methodology

Inbound Logistics Lead Time Analysis Page 38


RESEARCH METHODOLOGY
“Systematized effort to gain new knowledge”.

-Redman and Mory.


Definition
A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process
provides a systematic, planned approach to the research project and ensures that all aspects of
the research project are consistent with each other.

Research Model
Research is a systematic and organized effort to investigate specific problem or problems
encountered by an organization that needs a solution. A research can also be carried out to
gather knowledge that can be later used in an organization or some other institutions to solve
problems.

Type of Research:-
Applied Research- This type of research is carried out to solve a problem faced by an
organization. The intention of applying the findings of the research is to solve specific
problems faced by the organization.

Basic Research – This type of research is carried out to generate knowledge by trying to
comprehend how certain problems that occur in an organization can be solved. The findings of
this research can be later used by organization to solve certain problems. The findings of this
type of research contribute to building of knowledge in various functional areas of business.

In this research paper we have done a Basic Research to find out the Lead Time
Analysis of Imported Raw Materials from Port to Plant for Berger Paints India
Pvt Ltd. We hope the findings of our research will help the company’s Materials
Department to analyze better, the total time taken for importation of raw materials
and how it can be reduced by avoiding the delay time. And it will also give a clear

Inbound Logistics Lead Time Analysis Page 39


projection on the warehouse charges offered by different companies for storing the
raw materials.

DEFINITION OF THE RESEARCH PROBLEM:-


A problem is any situation where a gap exists between the actual and the desired ideal
states.

Here the objective is to show “How the Lead Time of Importation is calculated and
how it can be reduced to minimum”. This study is carried in the backdrop of Berger
Paints India Pvt. Ltd. This reveals the overview of the total time taken by the raw
materials to reaches the destined plant by avoiding unnecessary delays. Hence
finding answers to some of the most interesting questions.

1. How lead time for importation of raw materials can be more accurately
calculated so that the production is not hampered?
2. How delay time can be reduced to minimum?
3. What are the warehouse charges and how they are calculated?

RESEARCH FRAMEWORK:-
The report has been prepared on the basis of information collected from different sources. In
order to achieve the objective of the project proper research method was applied. After giving
thorough brain storming session, objectives were selected and the set on the base of these
objectives, information was gathered giving major emphasis on new ideas or insight so as to
determine and bind out solution to the problems.

RESEARCH DESIGN:
Purpose of the Study:
Studies may be either:
1. Exploratory study.
2. Descriptive study.
3. Causal study.

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These classifications are made according to the objective of the research. In some cases the
research will fall into one of these categories, but in other cases different phases of the same
research project will fall into different categories.

Exploratory study - This type of study is undertaken when much is not known about the
situation at hand or very less or no information is available on how similar problems have
been solved in the past.

This research has the goal of formulating problems more precisely, clarifying concepts, and
gathering explanations, gaining insight, eliminating impractical ideas, and forming
hypotheses.

Descriptive study - This type of study is undertaken in order to ascertain and describe the
characteristic of the variables of interest in a situations.

Causal research: - seeks to find cause and affect relationships between variables. It
accomplishes this goal through laboratory and field experiments.

The very purpose of our study of Lead Time Analysis of Imported Raw Materials
is to have a Descriptive study on various steps involve in transportation of raw
materials from the source port to the destined plant.

RESEARCH PROCESS:-
In this project I had to survey the various location of Kolkata. In my survey primarily I had to
find out the shipping agents who performs importation of goods from various countries of the
world. And various road transportation agents who transports goods in trucks, trailers, tankers
in various parts of the country.

Secondarily I had to survey the custom clearance department to find out the custom clearance
details and what are the various formalities and paper work one has to show for getting a
clearance from the customs department. And the warehousing agents for the warehousing

Inbound Logistics Lead Time Analysis Page 41


charges and in what basis they are charged by various agents, for storing the raw materials
after they are cleared by the customs department.

For these objectives the research methodology that I followed:


Defining the objective
Scope of the study
Limitation of the study
Develop the research plan
Identify data types and sources
Research approaches
Research Instruments
Determine sample plan and size
Contact methods
Collect the data
Collect the information
Analyzing and interpretation of the data

Objectives of the study:-

Inbound logistics Lead time analysis (Port to Port).


Inbound logistics Lead time analysis (Port to Plant).
Custom clearance analysis
Warehousing Details and Charges.

Scope of the study:-

To know the time taken for importing the raw materials from 17 different
countries all around the world through sea route.
To know the custom clearance details and what are the various formalities
and paper works required for clearance.

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To know the warehousing charges and in what basis they are charged by
various warehousing agents in Kolkata.
To know the time taken for transporting the imported raw materials from 3
different ports to 7 production plant of Berger Paints in India.

Limitations of the study:-

Time limit restricts detailed research work for this particular topic.
Warehousing charge details are restricted to warehouses of Kolkata only.
Most of the officials have lack of time so they don’t communicate properly.
Due to steep competition between the shipping agents, between warehousing
agents and between transportation agents they aren’t willing to disclose
information regarding charges.
The research regarding the warehouse charges are geographically restricted
to Kolkata only. Hence the result cannot be extrapolated to other places.

Research plan:-

Time span – 20.05.2010 to 25.07.2010


Total 8 weeks and 5 days of working.
Actual field working-
1. To identify various shipping agents, warehousing agents and
transportation agents.
2. To meet officials of the above mention agents and the
custom clearance officials directly in their office as their
availability.
3. To meet truck drivers personally for information regarding
normal delay time.
Introduction and gathered product knowledge – 6 days
Data collection time – 5 weeks & 5 days.

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Analysis of the data -1 week.
Final Preparation of project – 1 week.

Data types and sources:-


For this project both primary and secondary data were the most valuable source of
information.

Primary data: Primary data are data freshly gathered for a specific purpose. In my
project the source of primary data is Interviewing Method.
Secondary Data: Secondary data are those which are previously may have been
collected for other purposes but that can be used in the immediate study. The
secondary data was the most important source for my project to find out the raw
materials importation details. In my project the secondary data are collected from: –
List of raw materials imported from 17 different countries and their addresses
given from the company.
Internet.
Newspaper.
Magazines.
Company web site.

Secondary data has the advantage of saving time and reducing data gathering costs. The
disadvantages are that the data may not fit the problem perfectly and that the accuracy may be
more difficult to verify for secondary data than for primary data.

Research approaches: From the two data source which I have mentioned above
secondary data are the easiest way to gather and the cost of collecting this data is very low
and easily available from the respective association.
After collecting the secondary data or information from the secondary sources then I
started collecting primary data from the agencies to narrow down my research. There are
basically five ways to collect data:-

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Survey Research: - This method was one of the most appropriate ways to collect data.
The research approach is a widely used method for data collection and best suited for
descriptive type of research.
This approach I have used while surveying the warehouse charges of different
warehouse agencies.
Observational Research: - This method was widely used by me in my project,
because this survey has provided me the details of time taken in importing the raw
materials from different countries as this could only be found out by observing the
time taken by the ships to travel from the source countries to the 3 destination ports of
India provided to me by the different shipping agencies. And also through observation
research I could judge the time taken by the road transport to reach the destination
plant from the warehouses provided to me by different road transportation agents.
Focus-group Research: - This method was also used by me in my project because for
getting the warehouse charges I had to filter other warehouse agencies and focus on the
groups who can provide me the minimum area coverage of 5000 sq. feet for storing
the raw materials for Berger Paints.
Behavioral data:-This method was also not used by me in my research.

Research instrument: - There is various way of research instrument of collecting primary


data, the various methods are:-
Questionnaires.
Psychological tools.
Mechanical Devices
Qualitative Measures.

Here psychological tool was used as the research instrument.


Sampling Plans:-After deciding the research approach and instruments, now I had to
decide on the sampling plan which was one of the important task, because from the
bunch of people I had to select only those people(agents), whom I can target from now
onward .There are three way of sorting the data.

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Sampling Unit: - who is to be surveyed? And now my task was to define the
target population, which will be sampled from the number of people.
In this project my target population was only various types of agents:
1. Shipping agents
2. Warehousing agents
3. Road transportation agents
4. Custom clearance officials.

Sample Size: -
Unit Numbers
Shipping agents(of Kolkata) 4
Warehousing agents 4
Road transportation agents 4
Custom clearance official 1

Sampling Area:- Sample collected from the different parts of Kolkata and suburb
as follows –
Khidirpur
Alipore for Ware housing agents.
Ballygunge
Hazra
Khidirpur. for Shipping agents.
Burrabazar
Hazra
Rishra for Road transport agents.
Dunlop
Hazra for Custom Clearance agent.

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Contact methods: - After identified the exact location of agents through internet my task
was how to contact them, and for me there was only two ways of contacting them.

Primary:
Personal Interview: - this method was the most appropriate way of survey, because
by personal interview I came to know the exact time taken and charges of the
warehouses of their individual Company.

Secondary:
Telephone: - This method is also used by me because the agents had no time for me
and there was no other option to meet them so through telephone I got to fix an
appointment to meet them and explain them my requirements or sometimes collected
information from them over phone.
e-Mail:- This method is also used by me because the shipping agents of MUMBAI
and CHENNAI could only be contacted and approached about my requirement through
mails for gathering information.

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Findings & Analysis

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FINDINGS

Inbound logistics Lead time – Port to Port.

LEAD TIME:
Here lead time means total time which is considered approximately for the raw materials to
reach from source port to destination port via sea ways .

While calculating the lead time some points are taken into consideration:
1. Availability of proper shipment: This means availability of ships of proper size and
proper cargo containers so that the raw materials can reach the destination in the exact
form as required.

2. Availability of proper labor :This means availability of proper


Manpower to load (while in source port) and unload (while in destination port) the raw
materials.

3. Availability of proper connecting ships: If proper connecting ships between source


port and destination port are unavailable then it might cause a delay.

4. Transshipment: is the shipment of goods or container to an intermediate destination,


and then from there to the source destination this is done because of transloading.

5. Delay in delivery :Delay in delivery can happen due to many reasons: D1


Delay due to natural calamities like storms, tsunamis , hurricanes, etc.
Perils, dangers and accidents of the sea or navigable water.
An act of war or fighting between armed forces.
Civil war, riots, subversion and civil commotions.
Detention, arrest, restraint or any interference made against the ship by the
ruler of any State or territory, or under provisions of law, provided that it is not
caused by fault or neglect of the carrier.

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Quarantine (spread of something considered dangerous )restrictions.
Strikes, lockouts, stoppage or intentional slowdown at any port which obstruct
the loading and discharge of goods, or berthing or unberthing.
Act of piracy.
Latent defects of the ship not visible or discoverable by inspection with care
and skill which can normally and properly be expected of a person engaged in
an occupation of inspector of ships.
Error in navigation arising from the fault of the pilot in the discharging of his
duties or from the pilot's instruction.

Analysis :Inbound logistics Lead time - Port to Port

Inbound logistics Lead time : To find out the amount of time it takes to stage, ship and
transport an order, in order to receive material from the supply base for manufacturing the
product from date of release of purchase orders, to receive of materials in Berger Paints India
Ltd. (BPIL) considered as lead time. It includes the following:
Execution/Production of material at source.
Transporting materials from manufacturing installation to source port.
Sea passage time of containers.
Clearance at destination port.
Transportation at BPIL installation.

Details analysis of shipment of raw material of Berger Paints from different countries and time
taken to reach the THREE destination ports (KOLKATA, MUMBAI AND CHENNAI
PORTS.) are given below:

Inbound Logistics Lead Time Analysis Page 50


Figure 1: TIME TAKEN FROM BELGIUM

25
20 23
19 21 BELGIUM-
NO. OF 15 ANTIWERPAN
DAYS
10
(Y AXIS) 5
0
KOLKATA MUMBAI CHENNAI

Material From To Kolkata To Chennai To Mumbai


SYIA195NX795 Belgium 22days 21hrs 20days 17hrs 18days 17hrs
(antwerpen) (7688nmiles) (6963nmiles) (6289nmiles)
NATROSOL Belgium 22days 21hrs 20days 17hrs 18days 17hrs
250HHBR (antwerpen) (7688 nmiles) (6963nmiles) (6289nmiles)

Figure 2: TIME TAKEN FROM CHINA

20
15.5
13 14 13.5 13
15 11.5 12 12 11.5 11.5
10 11
9 9.5 9
10

NO. OF 5
DAYS
0
(Y AXIS)
KOLKATA MUMBAI CHENNAI

CHINA-ZHANJIANG CHINA-XIAMEN CHINA-SHANGAII


CHINA HONGKONG CHINA TIANJIN

Inbound Logistics Lead Time Analysis Page 51


METERIAL COUNTRY FROM TO KOLKATA TO CHENNAI TO MUMBAI

china 11days 16hrs 11days 14days


MATT HARDNER (zhanjiang) (3921nmiles) 12 hrs (4710 nmiles)
through malaysia (3863nmiles)

china 9days 18 hrs 9days 12days 2hrs


CMC BONDWELL (xiamen) (3272nmiles) 14 hrs (4062nmiles)
through malaysia (3215nmiles)

TITANIUM DIOXIDE ANATASE china 11days 6hrs 11days 2hrs 13days 14hrs
(shangaii) (3779nmiles) (3722nmiles) (4569nmiles)

china 11days 16hrs 11days 12 hrs 14days


ADDITOL(P964), (zhanjiang) (3921nmiles) (3863nmiles) (4710 nmiles)
SYNTHACRYL-700 through malaysia

MODIFIED PHENOLIC RESIN china 9days 2hrs 8days 22hrs 11days 11hrs
(hongkong) (3054nmiles) (2997nmiles) (3844nmiles)

china (inner 13days 1hr 12days 21hrs 15days 9hrs


CALCINED KAOLIN mogolia closet- (4376nmiles) (4320 nmiles) (5166nmiles)
port tianjin)

china(zhanjiang) 11days 16hrs 11days 12 hrs 14days


C9PETROLEUM through malaysia (3921nmiles) (3863nmiles) (4710 nmiles)
RFESIN N100

IRON OXIDE ORANGE, china(zhanjiang) 11days 16hrs 11days 12 hrs 14days


IRON OXIDE YELLOW 920, through malaysia (3921nmiles) (3863nmiles) (4710 nmiles)
RUTILE TITANIUM DIOXIDE

FIGURE 5: TIME TAKEN FROM GERMANY

25
20
23 23 23 23.5 21 21 21.5 21.4
15 19 19 19.5 19.4
NO. OF 10
DAYS
5
(Y AXIS)
0
KOL MUM CHEN

GERMANY-BREMERHAVEN GERMANY -HAMBURG


GERMANY-KIEL GERMANY-BREMEN

Inbound Logistics Lead Time Analysis Page 52


METERIAL COUNTRY TO KOLKATA TO MUMBAI TO CHENNAI
FROM
PENTAERYTHRITOL GERMANY 23DAYS 19DAYS 8HRS 21DAYS 8HRS
(BREMERHA 12HRS(7889NMILES) (6491NMILES) (7164NMILES)
VEN)

ALPASTE SRAPA , GERMANY 23DAYS 12HRS 19DAYS 8HRS 21DAYS 8HRS


METALLIC R-274, (BREMERHA (7889NMILES) (6491NMILES) (7164NMILES)
STD AL POWDER, VEN)
AL PASTE
VESTANAT T 1890L, GERMANY 23DAYS 15HRS 19DAYS 11HRS 21DAYS
POLYOIL (HAMBURG) (7943NMILES) (6545NMILES) 12HRS
(7218NMILES)

CARBON BLACK , GERMANY 23DAYS 17HRS 19DAYS 21DAYS


PRINTEX, (KIEL) (7962NMILES) 12HRS(6564NMILE 13HRS(7237N
LAMPBLACK101BEADS. S) MILES)

TITANIUM DIOXIDE RUTILE GERMANY 23DAYS 17HRS 19DAYS 21DAYS


KRONOS (KIEL) (7962NMILES) 12HRS(6564NMILE 13HRS(7237N
S) MILES)

BAYSILONE PAINT ADDITIVE, GERMANY( 23DAYS 19DAYS 21DAYS


SOLIGEN STABILIZER BREMEN) 14HRS(7924NMILES) 10HRS(6525NMILE 10HRS(7199N
S) MILES)

TEGO PHOBE 1401, GERMANY 23DAYS 19DAYS 21DAYS


ADHESION RESIN (BREMERHA 12HRS(7889NMILES) 8HRS(6491NMILES 8HRS(7164NMI
VEN) ) LES)

BLANC FIXE SUPER "F" GERMANY 23DAYS 19DAYS 21DAYS


(KIEL) 17HRS(7962NMILES) 12HRS(6564NMILE 13HRS(7237N
S) MILES)

ALUBRIGHT 3900 GERMANY 23DAYS 19DAYS 21DAYS


(BREMERHA 12HRS(7889NMILES) 8HRS(6491NMILES 8HRS(7164NMI
VEN) ) LES)

SILRES BS-1360 GERMANY 23DAYS 19DAYS 21DAYS


(BREMERHA 12HRS(7889NMILES) 8HRS(6491NMILES 8HRS(7164NMI
VEN) ) LES)

TYLOSE HS 10000 GERMANY 23DAYS 19DAYS 21DAYS


(HAMBURG) 15HRS(7943NMILES) 11HRS(6545NMILE 12HRS(7218N
S) MILES)

Inbound Logistics Lead Time Analysis Page 53


FIGURE 4: TIME TAKEN FROM JORDAN:

13
15 10.5
8.5

10 JORDAN-
AMMAN
NO. OF 5
DAYS
0
(Y AXIS) KOL MUM CHEN

Material From To Kolkata To Mumbai To Chennai


CALCIUM Jordan 12days 18hrs 8days 14 hrs 10days 14hrs
CARBONATE (amman) (4281nmiles) (2882nmiles) (3555nmiles)
JCFS

Figure5: TIME TAKEN FROM JAPAN

16
13.5 15
16 13 12.5 13.3
14
12
10
8
6
NO. OF 4
DAYS
2
(Y AXIS)
0
KOL MUM CHEN

JAPAN OSAKA JAPAN TOKYO

Inbound Logistics Lead Time Analysis Page 54


Raw Material From To Kolkata To Mumbai To Chennai
DURANATE 22A75PX,
DURANATE TPA 90SB,
ALUMINIUM PASTE Japan 12days 21hrs 15days 6hrs 12days
970519, (osaka) (4331nmiles) (5121nmiles) 17hrs
ALUMINIUM 7130N, (427nmiles)
ALUMINIUM PASTE
7640NS
TITANIUM DIOXIDE Japan 12days 21hrs 15days 6hrs 12days
RUTILE CR50 (osaka) (4331nmiles) (5121nmiles) 17hrs
(427nmiles)
HEXA HYDRO PHTHALIC Japan 13days 13hrs 15days 21hrs 13days 9hrs
ANHYDRIDE (tokyo) (4550nmiles) (5340nmiles) (4494nmiles
METHYL ETHYL Japan 12days 15days 12days
KETOXIME (osaka) 21hrs(4331n 6hrs(5121nmi 17hrs(427n
miles) les) miles)

Figure 6: TIME TAKEN FROM MALAYSIA

8 6.3 6.5

4.5 4
6 3.8 3.8

4
NO.OF
DAYS 2

0
KOLKATA CHENNAI MUMBAI

PORT PENANG(NO.OF DAYS) PORT KELANG(NO. OF DAYS)

Inbound Logistics Lead Time Analysis Page 55


Material From Kolkata Chennai Mumbai
ADDITOL P-964 malaysia 3 days 20hrs 3days 19hrs 6days 9hrs
(penang) ( 1293nmiles) (1279nmiles) (2142nmiles)

CAFCO SPRAY malaysia 3 days 20hrs 3days 19hrs 6days 9hrs


(penang) ( 1293nmiles) (1279nmiles) (2142nmiles)

DISTILLED malaysia 4days 15hrs 4days 4hrs 6days 16hrs


COCONUT FATTY (portkelang) (1556nmiles) (1396 nmiles) (2242nmiles)
ACID
TITANIUM malaysia 4days 15hrs 4days 4hrs 6days 16hrs
DIOXIDE RUTILE (portkelang) (1556nmiles) (1396 nmiles) (2242nmiles)

FIGURE 7: TIME TAKEN FROM NITHERLANDS.

23.5 23
25 21 20.75
19 18.7

NO. OF 20
DAYS

(Y AXIS) 15

10

0
KOL MUM CHEN

AMSTERDAM MOERDIJK

Inbound Logistics Lead Time Analysis Page 56


Materials From Kolkata Mumbai Chennai
URALAC P4055, URALAC Netherlands 23days 4hrs 19days 21days 1hrs
P5127, URALAC P4140, (amsterdam) (7789nmiles) (6390nmiles) (7064nmiles)
URALAC P5201
SETALLUX Netherlands 22days 22hrs 18days 18hrs 20days 18hrs
(moerdijk) (7695nmiles) (6296nmiles) (6969nmiles)

Figure 8: TIME TAKEN FROM SINGAPORE

7
10 5 4.7

5
NO. OF
DAYS (Y
AXIS) 0
KOL MUM CHEN

SINGAPORE

METERIAL FROM TO KOLKATA TO MUMBAI TO CHENNAI


TEXANOL Singapore 4days 7days 4days 17hrs
21hrs(1634nmiles) 5hrs(2424nmiles) (1578nmiles)

SICOTRANS 4days 21hrs 7days 4days 17hrs


REDL-3035, (1634nmiles) 5hrs(2424nmiles) (1578nmiles)
SICOTRANS
YELLOW
1916,REDL- Singapore
2817
METHYL Singapore 4days 7days 4days 17hrs
METHACRYL 21hrs(1634nmiles) 5hrs(2424nmiles) (1578nmiles)

Inbound Logistics Lead Time Analysis Page 57


ATE
SURFYNOL Singapore 4days 7days 4days 17hrs
104 21hrs(1634nmiles) 5hrs(2424nmiles) (1578nmiles)
ACRYSOL Singapore 4days 7days 4days 17hrs
RM 825 21hrs(1634nmiles) 5hrs(2424nmiles) (1578nmiles)
ROPLEX HG- Singapore 4days 7days 4days 17hrs
706 21hrs(1634nmiles) 5hrs(2424nmiles) (1578nmiles)

FIGURE 9: TIME TAKEN FROM SOUTH KOREA (YEOSU)

14.5
12.5 12
15 SOUTH
KOREA
YEOSU
NO. OF 10
DAYS

(Y AXIS) 5

0
KOL MUM CHEN

MATERIALS FROM TO TO TO
KOLKATA MUMBAI CHENNAI
HIQUE332 South korea 12days 4hrs 14days 13hrs(4882 12days (403nmiles)
(yeosu) (4092nmiles) nmiles)

Inbound Logistics Lead Time Analysis Page 58


FIGURE10: TIME TAKEN FROM SPAIN

17.86
13.75 15.75
20
NO. OF
DAYS
10
(Y AXIS)
0
KOL MUM CHEN

SPAIN- BARCELONA

MATERIAL COUNTRY TO TO TO
S FROM KOLKATA MUMBAI CHENNAI

METHYL Spain (barcelona) 17days 13days 15days


ISO 22hrs(6020nmi 18hrs(4621nmiles) 18hrs(5295nmiles)
BUTYL les)
KETONE

FIGURE 11: TIME TAKEN FROM SWEDEN

Meterial Country from Kolkata Mumbai Chennai

Bermocoll ehm-200 Sweden 25days 1 19days 24hrs(6719nmiles) 22days


(lysekil) hr(8416nmil (7392nmiles)
es)
Trimethylolpropane Sweden 25days 1 19days 24hrs(6719nmiles) 22days
(lysekil) hr(8416nmil (7392nmiles)
es)

Inbound Logistics Lead Time Analysis Page 59


25
26 SWEDEN-LYSENKIL
22
24 21
22
20
18
KOL MUM CHEN

FIGURE 12: TIME TAKEN FROM TIWAN (TAICHUNG):

12.3
10 9.75 TIWAN -TAICHUNG
15
NO. OF
DAYS 10

(Y AXIS) 5
NO. OF
DAYS 0
KOL MUM CHEN
(Y AXIS)

METERIAL COUNTRY KOLKATA CHENNAI MUMBAI


S FROM

PARAFOR TIWAN 9DAYS 22HRS 12DAYS 7 HRS 9DAYS 18HRS


MALDEHY (TAICHUNG) (3334NMILES) (4124NMILES) (3278NMILES)
DE92 PCT

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FIGURE 9: TIME TAKEN FROM THILAND

9.5
7
7.2
10
THILAND -
8 BANGKOK

6
NO. OF
4
DAYS

(Y AXIS)
2

0
KOL MUM CHEN

METERIAL COUNTRY KOLKATA MUMBAI CHENNAI


FROM
CRYLCOA THILAND 7DAYS 7HRS 9DAYS 15HRS 7DAYS 3HRS
T-2441 (BANGKOK) (2451NMILES) (3241NMILES) (2394NMILES)
EPOXY THILAND 7DAYS 7HRS 9DAYS 15HRS 7DAYS 3HRS
RESIN (BANGKOK) (2451NMILES) (3241NMILES) (2394NMILES)

CRYLCOA THILAND 7DAYS 7HRS 9DAYS 15HRS 7DAYS 3HRS


T-1510 (BANGKOK) (2451NMILES) (3241NMILES) (2394NMILES)

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FIGURE 11: TIME TAKEN FROM U.A.E:

8.4
10 UAE- SHARJAH
6.2
8
NO. OF 3.2
6
DAYS

(Y AXIS) 4

0
KOL MUM CHEN

Material Country from Kolkata Mumbai Chennai

EPOXY RESIN UAE 8days 10hrs 3days 7hrs 6days 6hrs


(Sharjah) (2832nmiles) (1105nmiles) (2107nmiles)
ZINC DUST STANDARD-7 UAE 8days 10hrs 3days 7hrs 6days 6hrs
(Sharjah) (2832nmiles) (1105nmiles) (2107nmiles)

FIGURE 15: TIME TAKEN FROM UK.

22.7
18.5 20.5
25
UK-LONDON
20
15
NO. OF
DAYS
10
5
(Y AXIS)
0
KOL MUM CHEN

Inbound Logistics Lead Time Analysis Page 62


Materials Country Kolkata Mumbai Chennai
BENTONE-27, MPA 60,
BENTONE38, BENTON"EW", UK 22days 18hrs 18days 20days 14hrs
BENTONE SD-2, RHEOLATE- (London) (7644nmiles) 14hrs (6918nmiles)
278, BENTONE SD-3 (6245nmiles)

FIGURE 6: TIME TAKEN FROM USA:

35 32 29.8
28.5 29
28.7 26.7 27.8 26.5 26.5 26
30 24.5 24
25

20
NO. OF
DAYS 15

(Y AXIS) 10

0
KOL MUM CHEN

WILMINGTON SAN FRANSISCO PITTSBURGH NUYORK

Material Country from Kolkata Mumbai Chennai

RUTILE USA 28DAYS 24DAYS 13HRS 26DAYS 13HRS


TI PURE (WILMINGT 17HRS (8251NMILES) (8924NMILES)
ON) (9650NMILES)
TIXOGEL-MP USA 26DAYS 29DAYS 3HRS 26DAYS14HRS
(SAN 18HRS (9780NMILES) (8933 NMILES)
FRANCISCO (8990NMILES)
)

Inbound Logistics Lead Time Analysis Page 63


USA 31DAYS 27DAYS 29DAYS 20HRS
CUMARR-29 (PITTSBURG 23HRS(10747N 20HRS(9348NMI (10022NMILES)
H) MILES) LES)

USA(NEW 28DAYS 8HRS 24DAYS 4HRS 26DAYS 5HRS


TROYKYD D-666 JERSY) (9525 (8127NMILES) (8800NMILES)
NEAREST NMILES)
PORT NYK

FIGURE 17: TIME TAKEN FROM VIETNAM

9
10 6.75 6.5
8
6
NO. OF 4
DAYS
2
(Y
AXIS) 0
KOL MUM CHEN

HO CHI MING CITY

RAW COUNTRY TO TO MUMBAI TO CHENNAI


METERIAL FROM KOLKATA

GUM ROSIN "WW" VIETNAM 6DAYS 9DAYS 2HRS 6DAYS 14HRS


GRADE (HO CHI 18HRS (3056NMILES) (2210NMILES)
MINH (2267NMILES)
CITY)

Inbound Logistics Lead Time Analysis Page 64


WORLD SEA ROUTES

Inbound Logistics Lead Time Analysis Page 65


SEA TRADE ROUTES IN INDIAN OCEAN

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CUSTOM CLEARANCE FINDINGS

Need for custom clearance:

All goods imported in India have to pass through the procedure of customs clearance after
they enter Indian Borders. The goods are examined, appraised, assessed, evaluated and
allowed to be taken out after payment of custom duty. Since the entire process is complex the
importers usually take the help of clearing agents.

General procedure:

Custom clearance of sea consignments involves the following major steps:


1. Preparation of bill of entry: On receipt of advice of arrival of the vessel, the importer
or their agents are required to present a bill of entry in the prescribed form. Bill of
entry is of three types:
 bill of entry for home consumptions(white bill)
 bill of entry for warehousing (yellow bill)
 ex- bond bill of entry(green bill).

2. Noting of bill of entry: The noting of bill of entry is filed with the import department
of the customs house. The noting clerk examines the paper and if found in order signs
the bill of entry.

Note: the date of noting is important because the rate of duty applicable to the goods
would be the rate as in force on the date of noting except in case of warehouse goods
where the rate applicable would be that in force on the date of physical clearance.
“the bill of entry after noting is returned back to the importer.”

3. Submission of bill of entry for appraising of goods: After noting the bill of entry is
submitted to the receipt counter in the appraising department along with the following
necessary documents for Chemical composition (in case of import of chemicals and
allied products) products:

Inbound Logistics Lead Time Analysis Page 67


1. Import license.
2. Exporters invoice
3. Original copy of bill of lading and its non negotiable copy .
4. Two copies of packing list
5. Manufactures test certificate.
6. Weight specification.
7. Certificate of origin.
8. Delivery order issued by shipping company or its agent.
9. Freight certificate (in case of F.O.B. consignment)
10. Insurance certificate (in case of F.O.B and C&F consignment).
11. Declaration from the importer of having paid no commission to agents of India.
12. Customs declaration.
13. Catalogue /drawing of the machinery/ equipment/ material or etc.

4. Passing of bill of entry: The information /documents submitted by the importer along with
bill of entry are verified by the appraiser concerned who after necessary verifications and
examination decides the product classification and passes the assessment. The underlying
objectives are to assess the correct value of the custom duty.

Either of the following situations can arise:

a) If the information/ documents submitted by the importer is found to be adequate by the


appraiser for the acceptance of declared value and determination of the classification,
he may allow clearance of goods (i.e. clearing of licensing formalities, assessment and
payment of custom duty) prior to examination of the goods.
This procedure where assessment is completed and duty is recovered prior to
examination of goods is known as “second check procedure”.

b) If there is a doubt relating to classification (this being possible if the


information/documents is adequate to accept declared value and determine

Inbound Logistics Lead Time Analysis Page 68


classification, the appraiser may raise a “query-memo” which is normal course is
required to be replied within 2 days.

The group appraiser may also issue examination order to the shed appraiser and decide
the product classification after receipt of examination report.
This procedure where assessment is completed and duty is recovered after
examination of goods is called “first check procedure”.

5. Licensing formalities: Bill of entry (original and duplicate) is received in the license
section for necessary debit entry and for pre audit. Thereafter, duty is computed by computist
and then returned to importer for payment of duty in the accounts/ cash department.

6. Payment of custom duty: All copies of bill of entry along with pay slip are submitted to
the accounts section for payment of duty. The following types of custom duties are levied on
goods imported in India.

A) Basic duty: Basic duty is levied on all goods imported into India as prescribed in the
First Schedule of Customs Tariff Act, 1975. This schedule is amended from time to
time to modify, alter or vary the nature of duty. This duty can be levied either as a
percentage of value of goods or at a specified rate.

B) Auxiliary duty: Auxiliary duty is levied in addition to the basic duty and is prescribed
under the finance act every year. However with effect 28.02.1993 the duty has been
withdrawn after restructuring and rationalizing the basic duty.

C) Countervailing duty or additional duty: This duty is levied equal to excise duty
leviable on like articles produced or manufactured in India. This duty is levied on total
cost of imported goods

D) Specific duty: The duty is levied in order to counter balance the excise duty leviable
on the imports going into the production of such goods produced in the country.

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All copies of bill of entry along with pay slip are submitted to the accounts section for
payment of duty. A stamp is affixed on all copies of bill of entry as proof of having
paid the duty.

7. Examination of goods and delivery from port: After recovery of duty, all copies of bill of
entry except the original (original is retained in the accounts section) are returned to the
importer for getting the goods examined in the docks (in case of second check examination).
In the docks shed appraiser/ examiner shall examine goods and if in order shall give the out of
charge for taking the delivery from port trust (custodian of goods) after payment of port trust
charges.

LEAD TIME:

Here lead time means total time which is considered approximately for the raw materials to
get clearance from customs.

Here while calculating lead time one thing is kept in mind that if any delay occurs while
submitting the following documents then delay time gets added with the lead time causing a
high lead time which eventually effects the production.
So, delay occurs if the following papers are not submitted on time:
D2
1. Import license.
2. Exporters invoice
3. Copy of letter of credit
4. Original copy of bill of lading and its non negotiable copy .
5. Two copies of packing list
6. Manufactures test certificate.
7. Weight specification.

Inbound Logistics Lead Time Analysis Page 70


8. Certificate of origin.
9. Delivery order issued by shipping company or its agent.
10. Freight certificate (in case of F.O.B. consignment)
11. Insurance certificate (in case of F.O.B and C&F consignment).
12. Declaration from the importer of having paid no commission to agents of India.
13. Customs declaration.
14. Catalogue /drawing of the machinery/ equipment/ material or etc.

Custom clearance analysis


In the above page the details of information of custom clearance which were found while
visiting the custom clearance office and meeting the officers are given and from that an
analysis was done through a flowchart which gives a step by step clear picture, how the paper
work is done and the parameters through which a scrutiny is done on the imported goods. And
after clearing the formalities the goods are submitted to the clearing agents who deliver the
goods to the warehouses.

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FLOWCHART EXPLANATION:

START

Preparation of Bill- of-Entry

Noting of bill of entry

Verification of bill of
entry by the appraiser

Appraiser
accepted
value/descripti
YES on etc??

N
O
2.
1
.
1 2.
3.
.

Inspection of goods
(first check)
Goods
examined
earlier (first
Passing of check)?
bill-of-entry
Inbound Logistics Lead Time Analysis Page 72
N
O
Examination
Licensing of goods by
YES
formalities appraiser (2nd
check)
Payment of port
Computation of duty trust charges

Typing of duty on Bill-


Delivery from Port
of-Entry on perforated
typewriter
Trust

Audit of Bill-of-Entry STOP


by internal audit

Scrutiny by licensing
department

Assistant Collector’s
signature

Payment of duty

3
.

Inbound Logistics Lead Time Analysis Page 73


FINDINGS: ON WAREHOUSE

WARE HOUSE:

A Warehouse is a commercial building for storage of goods. Warehouses are used by


manufactures, importers, exporters, wholesalers, transport businesses, customs, etc. they are
usually large lain buildings in industrial areas of cities and towns. They usually have loading
docks to load and unload goods from trucks. Sometimes warehouses load and unload goods
directly from railways, airports, or seaports. They often have cranes and forklifts for moving
goods, which are usually placed on ISO standard pallets loaded into pallet racks.

WARE HOUSING CHARGES:

After visiting certain ware housing agencies, following details were found,
Wear housing rates are calculated according to certain parameters:
1. Storage charges.
2. Cargo unloading charges. . (Each packet/piece weighing within 3 MT)
3. Cargo loading charges. (Each packet/piece weighing within 3 MT)
4. Insurance recovery.

Payment parameters :
Bills are raised on fortnight basis and to be settled within 5days of submission thereof. In case
payments are released beyond 15days of submission, interest @11% shall be recovered.

LEAD TIME OF WAREHOUSE:

Here lead time means total time which is considered approximately for the raw materials to
reach the warehouse for storing of materials and time taken to upload the raw materials in
trucks for further transport to the plant.

Here while calculating lead time one thing is kept in mind that if any delay occurs while
unloading the raw materials in the warehouses and/or loading the raw materials back to the

Inbound Logistics Lead Time Analysis Page 74


truck for further transportation to the plant then delay time gets added with the lead time
causing a high lead time which eventually effects the production.

So, Possibilities for delay :


1. No availability of proper transport (trucks, tankers or/and tailors) from port to the
warehouses.
2. No availability of manual labours who will unload the materials into the warehouse.
3. No availability of proper instruments like forklift, shaft cranes to place the materials at
a safe place.
4. Non submission of papers and payments before uploading the materials back to the
truck for further transportation to the plant.
5. No availability of labours for uploading the materials to the truck for further
transportation to the plant.
6. No availability of proper road transport which will transport the material to the plant.

COST ANALYSIS OF WAREHOUSES


From the above parameters of ware housing charges the cost analysis of the following ware
houses were done :
1. Tiwari Warehousing Company.
2. Syndot Packers & Movers.
3. Balmer Lawrie & Co. ( Used by Berger Paints for storing Raw materials)
4. A S Syndicate Pvt. Ltd.

Storage charges : Storage charges are considered as amount in Rupees per square
feet per month:

Inbound Logistics Lead Time Analysis Page 75


28
22 23.5
30 20
STORAGE CHARGES in
20 Rs. ( PER
SQ.FEET/MONTH)
10

0
Tiwari Syndot Packers Balmer lawrie A S Syndicate
Warehousing & Movers and co. ltd Pvt Ltd
Company

Cargo loading and unloading charges : Cargo loading and unloading charges are
considered as amount in Rupees per Metric- ton:

97
95 95
98
96 92
Cargo
94
loading &
92 unloading
90 charges(Rs.)
88
Tewari Syndot Packers Balmer lawrie A S Syndicate
Warehousing & Movers and co. ltd Pvt Ltd
company

Insurance recovery charges: The insurance charges are given by the ware housing
company over the goods kept in their custody and is charged as Rupees per kg per
day of cargo value:

Inbound Logistics Lead Time Analysis Page 76


1.5 1.5 1.5 1.5

1.5

0.5

0
Tewari Syndot Packers & Balmer lawrie and A S Syndicate
Warehousindg Movers co. ltd Pvt Ltd
company

Insurance recovery charges(Rs. 1.5/kg/day of cargo value)

NOTE: Insurance recovery is Rs.1.5 per kg per day of cargo value for all the companies.

Cost analysis of different warehouses:

Serial Company Address Storage Cargo Cargo Insurance


no. name charges loading unloading recovery
charges charges

1. Tewari Jani Kunj 28/- PER Rs.95 Rs.95 per Rs.1.5 per kg
Warehousin Hode Shed sq. feet/ per MT MT per day of
g company Dump month cargo value
Road ,
Brace
Bridge
Road ,
Kolkata -
88.

2. Syndot Syndot 20-23/- Rs.97 Rs.97 per Rs.1.5 per kg


Packers & Packers & PER per MT MT per day of
Movers Movers Sq.feet cargo value
3657 , /month
Jyothi Roy ( AS PER
Road New THE
Alipore, GOODS)
Kolkata

Inbound Logistics Lead Time Analysis Page 77


3. Balmer P-3/1 20/- PER Rs.95 Rs.95 per Rs.1.5 per kg
lawrie and Transport sq.feet/ per MT MT per day of
co. ltd Depo month cargo value
Road
Kolkata -
88

4. AS 23C, 23.5/- PER Rs.92 Rs.92 per Rs.1.5 per kg


Syndicate Ahiripukur sq.feet/ per MT per day of
(Ware 1st Lane, month MT (Negotiab cargo value
Housing) Pvt Ballygung (Negotia le )
Ltd e, Kolkata, ble)
700019

Inbound Logistics Lead Time Analysis Page 78


FINDINGS: INBOUND LOGISTICS LEAD TIME – PORT TO PLANT.

LEAD TIME:

Here lead time means total time which is considered approximately for the raw materials to
reach from supplier works to plant via road ways.

While calculating the lead time some points are taken into consideration:
1. Availability of proper transport: This means availability of trucks of proper size and in
proper condition so that the raw materials can reach the destination in the exact form as
required.
2. Availability of proper labor: This means availability of proper manpower to upload
(while in port) and unload (while in plant) the raw materials.
3. Delay in delivery: Delay in delivery can happen due to many reasons:
Unavailability of proper transport.
D5&D6
Unavailability of proper labor to upload the goods in the vehicles.
Natural calamities.( flood, storm, earthquake, landslide and etc.).
Man made calamities.( strike, rallies , road blockage, accident of other vehicles and
etc.).
Vehicle mishap: accident, break down , tire puncher and etc.).
Road jam.
Delay after reaching the plant while unloading the materials from the truck and storing
the materials in the plant. Which is mainly caused due to un availability of labours for
unloading .
4. Normal delay: this delay is considered as the time taken by the driver and his helper for
their rest and food. According to the truck drivers of various road transportation agencies:
In a whole day (24 hours):
Time allotted for food (4 times a day) and refreshing: 4hrs (approx).
Time allotted for sleep and rest: 6 hrs.(approx).
Total hours of driving each day: 24-(4+6) = 14 hrs a day.

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 Transit time : Here transit time is calculated as the exact time it takes for the raw
materials to reach the plant , by considering the exact total distance between the port
and the plant and then dividing it by the approximate speed of the vehicle (which is
taken as 30kmph in this analysis.).

Inbound Logistics Lead Time Analysis Page 80


Analysis: Inbound logistics Lead time - Port to Plant.

FROM MUMBAI PORT:


8 8 8
8
6
6 4.5
4
4 3
2.5 2.5 2.1 2.1
1.5 2
2 0.2
0

LEAD TIME (DAYS) TRANSIT TIME (DAYS)

From port To plant (factory) Distance in Lead time Transit time Avg speed
km.
MUMBAI PONDA (GOA) 344Kms 4 DAYS 15HRS 30KMPH
PORT
MUMBAI JAMMU(J&K) 1582KMS 8 DAYS 60 HRS(2.5 30KMPH
PORT DAYS
APPROX)
MUMBAI VIDYA VALLABH 447Kms. 2DAYS 20HRS( 1 30KMPH
PORT NAGAR DAY
( GUJRAT) APPROX)
MUMBAI DEVLA (U.P.) 1220Kms 6 DAYS 48HRS( 30KMPH
PORT 2DAYS
APPROX)
MUMBAI PONDICHERRY 1073Kms 5 DAYS 36HRS ( 1.5 30KMPH
PORT DAYS
APPROX)

Inbound Logistics Lead Time Analysis Page 81


MUMBAI HOWRAH( WEST 1691Kms 8DAYS 57HRS( 30KMPH
PORT BENGAL) 2.5DAYS
APPROX)
MUMBAI RISHRA (WEST 1695Kms 8 DAYS 57HRS( 30KMPH
PORT BENGAL) 2.5DAYS
APPROX)

Inbound Logistics Lead Time Analysis Page 82


FROM KOLKATA PORT:

8 7 7
6 6
6 5
3.5
4 3 3
2.5
2 2 2
2 0.041 0.041

LEAD TIME (DAYS) TRANSIT TIME (DAYS)

From port To plant (factory) Distance in Lead time Transit Avg speed
km. time

KOLKATA PONDA (GOA) 1756kms 8 DAYS 58HRS 30KMPH


PORT (3 DAYS
APPROX)

KOLKATA JAMMU(J&K) 1775kms 8 DAYS 60HRS 30KMPH


PORT ( 3.5DAYS
APPROX)

KOLKATA VALLABH VIDYA 1574kms 7 DAYS 53HRS 30KMPH


PORT NAGAR (3DAYS
( GUJRAT) APPROX)

KOLKATA DEVLA (U.P.) 1226kms 6 DAYS 41HRS 30KMPH

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PORT (2DAYS
APPROX)

KOLKATA PONDICHERRY 1465kms 7 DAYS 49HRS 30KMPH


PORT ( 2.5DAYS
APPROX)

KOLKATA HOWRAH( West 22Kms 2 DAYS 1 HR 30KMPH


PORT Bengal)

KOLKATA RISHRA (WEST 19Kms 2 DAYS 1 HR 30KMPH


PORT BENGAL)

FROM CHENNAI PORT:

2
1.5
1 0.2
0.5
0
PONDICHERRY

LEAD TIME (DAYS) TRANSIT TIME (DAYS)

Inbound Logistics Lead Time Analysis Page 84


FROM TO PLANT DISTANCE LEAD TRANSIT AVG SPEED
PORT (FACTORY) IN Km. TIME TIME

CHENNAI PONDICHERRY 134KMS 2 DAYS 5 HRS 30KMPH


PORT

NOTE: FROM CHENNAI PORT GOODS ARE ONLY SUPPLIED TO PONDICHARY


PLANT.

Inbound Logistics Lead Time Analysis Page 85


TOTAL TIME ANALYSIS
CURRENT SENARIO :

SOURCE PORT
PLANT
D6

D1
UNDER SHIPPING
AGENT

D5
DESTINATION PORT

UNDER CUSTOMS UNDER ROAD


D2 CLEARANCE TRANSPOTATION
AGENT AGENT

CUSTOMS
INSPECTION

UNDER
WAREHOUSING
D3 AGENT

WARE HOUSE

D4

Inbound Logistics Lead Time Analysis Page 86


Here the above chart is an O &M Chart where:

D DELAY TIME Agents involved

Delay caused during shipping UNDER SHIPPING


D1
AGENT
of the raw materials

Delay caused during custom UNDER CUSTOMS


D2 CLEARANCE AGENT
clearance of raw material

Delay caused during UNDER


D3 unloading raw materials in WAREHOUSING
warehouse. AGENT

Delay caused during UNDER


D4 uploading raw materials from WAREHOUSING
warehouse into trucks for AGENT
transporting it to plant.

Delay caused during UNDER ROAD


D5
TRANSPOTATION
transporting the raw materials
AGENT
through road transport from
warehouse to plant.

Delay caused while unloading UNDER ROAD


D6 the raw materials from truck TRANSPOTATION
AGENT
into the stores of BPIL plant.

TOTAL = D1 + D2 + + + +
D3 D4 D5 D6
DELAY (D)

Inbound Logistics Lead Time Analysis Page 87


 From the above scenario we can see that there are 6 different kinds of delay which
slows down the process of reaching the material from source to destination.
 Here there is an involvement of 4 different agents under whose guidance the material
reaches from the source to destination.
 If one the four agents fails to run the process smoothly then the delay time increases by
a huge margin gradually effecting the production of paint.
 The major cause of these delay is due to lack of synchronization between all the four
agents , i.e. if one fails to deliver on time then all the other 3 gets effected.
 Now on the costing point of view, each of the four agencies has to be paid a certain
amount as their carrying cost or storing cost which comes to 20-25% on total cost of
the material for the whole process.
 Hence a total of 20-25% of total cost of material is spent on its transportation but still
efficiency is not up to the par.

COST OF = CHARGE OF + CHARGES+UNDER + CHARGES


SHIPPING AGENT CUSTOMS UNDER
+ IMPORT CLEARANCE WAREHOUSING
AGENT AGENT

CHARGES UNDER
ROAD
= 20-25% OF TOTAL COST
TRANSPOTATION
AGENT OF MATERIALS.

Inbound Logistics Lead Time Analysis Page 88


Recommendations

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RECOMMENDATION

SUGGESTIVE SENARIO: CURRENT SENARIO:

SOURCE PORT
SOURCE PORT

UNDER SHIPPING
D6
d1 D1 AGENT

DESTINATION
DESTINATION UNDER ONE d5
PORT
PORT INTERNATIONAL
AGENT
UNDER CUSTOMS
D2 CLEARANCE
AGENT

CUSTOMS
CUSTOMS INSPECTION INSPECTION
D5
UNDER
D3 WAREHOUSING
AGENT

WARE HOUSE WARE HOUSE

UNDER ROAD
D4 TRANSPOTATION
AGENT

Here the above chart is a recommended Operation &Management Chart where:

d REDUCED DELAY TIME Agents involved

Inbound Logistics Lead Time Analysis Page 90


Reduced Delay during
d1 shipping of the raw materials
Delay during custom clearance
-
of raw material can be nullified

Delay during unloading raw


-
materials in warehouse can
be nullified. UNDER ONE
Reduced Delay during loading INTERNATIONAL
- raw materials from warehouse AGENT
into trucks for transporting it
to plant which can be
nullified.

d5 Reduced Delay during


transporting the raw materials
through road transport from
warehouse to plant.

- Reduced Delay during


unloading the raw materials
from truck into the stores of
BPIL plant which can be
nullified.
TOTAL = d1+ +- + + +
- - d5 -
DELAY(d)

THE ACCOUNTABILITY ON SINGLE AGENT


SO UNDER AN INTERNATIONAL AGENT:OFFER BETTER
CONTROL

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Recommendation to reduce delay

 Delay during custom clearance of raw material can be nullified as it will be under one
agency hence all the paper submission and submission of bill of entry will be on time
hence there will be no delay during custom clearance.
 Delay during unloading raw materials in warehouse can be nullified as here the
transporter of the materials from port to warehouse and the warehouse personal are
under the same agency hence synchronization and efficiency of time will be
maximum without any delay.
 And same during loading goods from warehouse as under one organization hence
arrangement of transportation and labour for uploading will be done by one unit
without any hindrance.
 Unloading of goods from trucks to the plant will be done by labours arranged by the
International agent so the delay can be nullified.

TOTAL D1 D2
= + + D3 + D4 + D5 + D6
DELAYTIME (D)

WILL BE REDUCED TO

TOTAL
REDUCED = d1 + - + - + - + d5 + -
DELAY TIME (d)

Fig: Showing reduced delay

Inbound Logistics Lead Time Analysis Page 92


Recommendation to reduce cost

 Now on the costing point of view, with one International agent the carrying cost and
storing cost will come to 10-15% (max) of total cost of the material for the whole
process.
 Hence a total cost can be reduced from 20-25% to 10-15% with efficiency up to the
par.

COST OF
IMPORTATION
= 20-25% OF TOTAL COST OF
MATERIALS.

.
WILL BE REDUCED TO

REDUCED COST
10-15% OF TOTAL COST OF
OF = MATERIALS.
IMPORTATION

.
10% OF TOTAL COST OF
SAVINGS OF
TOTAL
= MATERIALS.

Fig: Showing reduced cost.

Inbound Logistics Lead Time Analysis Page 93


Conclusion

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CONCLUSION

In these 2 months project collecting data from different types of agencies and finding out total
lead time was my work and obviously I had to face some resistance in the way. But I have
managed to counter the resistance and this project was a great experience for me. It has given
me the opportunity to get exposure in the world of Supply chain and Logistics. There were
many tough moments that I had to face regarding communication. But, at the end of the
project I have to admit that these difficulties have made me much more efficient. The whole
system of the company has helped me a great deal and this was the best part of the project.

All in all, it was a real great exposure for me. For a fresher like me, it has given me a huge
opportunity to showcase my endowment and ability to work as a professional which has
always been an ambition for me. Working for one of the leading paint company of India,
Berger Paints India Ltd, has given me the apprehension of how to go about in an organization
and also it has given me ability to over view problems as opportunities to find out innovative
and profitable solutions.

Inbound Logistics Lead Time Analysis Page 95


References

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REFERENCES

Bibliography:

Supply Chain and Logistic Management – Donald.J Bowersox , David J. Closs.

Purchase Management- Prof. L.C. Jhamb.

Production and Operations management – Prof. S.N Chari.

Web Help:-
www.shippingrates.com

www.bergerpaints.com.

www.globalsupplychain.com.

www.wikepedia.com.

Inbound Logistics Lead Time Analysis Page 97

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