Académique Documents
Professionnel Documents
Culture Documents
On
Inbound Logistics
Lead Time Analysis
Submitted by
Name: Akshay Khashu
Reg No: 201222881
Submitted to SCDL
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.
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.
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
1 Executive Summary 6
2 Objectives 9
3 Introduction 11
4 Research Methodology 38
6 Recommendations 89
7 Conclusion 94
8 References 96
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.
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.
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.
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.
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:
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.
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
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.
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
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 -
Performance : Biocides
GRINDING
EQUIPMENT
DRYERS
MIXER STAINER
QUALITY CONTROL
FILLING
DESPATCH
Painting surface
External Internal
Factors
EXTERNAL INTERNAL
Salinity
Temperature variation
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.
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.
DECORATIVE PAINT
INDUSTRY
INDUSTRIAL PAINT
INDUSTRY
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
ON PRODUCT LINES:
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.
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.
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
9000
8000
7000
4700
6000
5000
2150
4000
3000
430
2000
1000
0
Enamel Wall finishes Primers Wood finishes
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
4500
4000
3500
3000
2500
2000
1075
1500 860 731
1000 94.6
500
0
Auto CRP Powder Coil Others
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.
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.
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.
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
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
70%
GERMANY: -
JAPAN:-
NITHERLANDS: -
SINGAPORE:-
TIWAN:-
SPAIN:-
SWEDEN:-
TRIMETHYLOLPROPANE SWEDEN(LYSEKIL)
THILAND:-
U.A.E.(SHARJAH):-
UNITED KINGDOM :-
USA: -
VIETNAM:-
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
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
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
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.
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
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.
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:-
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:-
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.
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.
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.
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:
25
20 23
19 21 BELGIUM-
NO. OF 15 ANTIWERPAN
DAYS
10
(Y AXIS) 5
0
KOLKATA MUMBAI CHENNAI
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
TITANIUM DIOXIDE ANATASE china 11days 6hrs 11days 2hrs 13days 14hrs
(shangaii) (3779nmiles) (3722nmiles) (4569nmiles)
MODIFIED PHENOLIC RESIN china 9days 2hrs 8days 22hrs 11days 11hrs
(hongkong) (3054nmiles) (2997nmiles) (3844nmiles)
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
13
15 10.5
8.5
10 JORDAN-
AMMAN
NO. OF 5
DAYS
0
(Y AXIS) KOL MUM CHEN
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
8 6.3 6.5
4.5 4
6 3.8 3.8
4
NO.OF
DAYS 2
0
KOLKATA CHENNAI MUMBAI
23.5 23
25 21 20.75
19 18.7
NO. OF 20
DAYS
(Y AXIS) 15
10
0
KOL MUM CHEN
AMSTERDAM MOERDIJK
7
10 5 4.7
5
NO. OF
DAYS (Y
AXIS) 0
KOL MUM CHEN
SINGAPORE
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)
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
12.3
10 9.75 TIWAN -TAICHUNG
15
NO. OF
DAYS 10
(Y AXIS) 5
NO. OF
DAYS 0
KOL MUM CHEN
(Y AXIS)
9.5
7
7.2
10
THILAND -
8 BANGKOK
6
NO. OF
4
DAYS
(Y AXIS)
2
0
KOL MUM CHEN
8.4
10 UAE- SHARJAH
6.2
8
NO. OF 3.2
6
DAYS
(Y AXIS) 4
0
KOL MUM CHEN
22.7
18.5 20.5
25
UK-LONDON
20
15
NO. OF
DAYS
10
5
(Y AXIS)
0
KOL MUM CHEN
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
9
10 6.75 6.5
8
6
NO. OF 4
DAYS
2
(Y
AXIS) 0
KOL MUM CHEN
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:
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:
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.
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.
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.
START
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
Scrutiny by licensing
department
Assistant Collector’s
signature
Payment of duty
3
.
WARE HOUSE:
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.
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
Storage charges : Storage charges are considered as amount in Rupees per square
feet per month:
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:
1.5
0.5
0
Tewari Syndot Packers & Balmer lawrie and A S Syndicate
Warehousindg Movers co. ltd Pvt Ltd
company
NOTE: Insurance recovery is Rs.1.5 per kg per day of cargo value for all the companies.
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.
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.
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)
8 7 7
6 6
6 5
3.5
4 3 3
2.5
2 2 2
2 0.041 0.041
From port To plant (factory) Distance in Lead time Transit Avg speed
km. time
2
1.5
1 0.2
0.5
0
PONDICHERRY
SOURCE PORT
PLANT
D6
D1
UNDER SHIPPING
AGENT
D5
DESTINATION PORT
CUSTOMS
INSPECTION
UNDER
WAREHOUSING
D3 AGENT
WARE HOUSE
D4
TOTAL = D1 + D2 + + + +
D3 D4 D5 D6
DELAY (D)
CHARGES UNDER
ROAD
= 20-25% OF TOTAL COST
TRANSPOTATION
AGENT OF MATERIALS.
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
UNDER ROAD
D4 TRANSPOTATION
AGENT
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)
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.
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.
Bibliography:
Web Help:-
www.shippingrates.com
www.bergerpaints.com.
www.globalsupplychain.com.
www.wikepedia.com.