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  Export   On the topic, I have a business idea. Export for a general Indian company, people get feared 1.  Not known about the buyer 2. Not known about the export paperwork 3. Not known on a single SKU a volume order will not come  4. Buyer do not want to buy a large same product. 5. Registration on advertisement website to promote with some licenses. Solutions can be 1. A logistic company do have his own vehicle  2. A warehouse 3. A custom clearance agent Connect to Buyer and offer them a basket, Collect materials from various company, make a basket and aggregator can solve the same. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Founder member of Divine Logscm ( Supply Chain Consultant ) Faculty member for Management Subject under Techno India University. More than 10 + years’ experience in FMCG Supply Chain DBA Lincon University PHD MACAUT MBA Marketing & Finance from Future Bus...
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How to Find a Transporter

 How to find a Transporter ? To find a proper transporter is difficult  To evaluate the same To get competitive rate . So what's the solution. The solution is bidding or auction . Auction is a process where a IT provider will provide a platform, ask the IT provider to get transporters. A experience provider already had a pool for the same work done previously, just ask for the service. Ask the provider to arrange a auction and bring vendor. With 1 hr auction a comparative rate with vendor details will be received. Think differently. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Faculty member for Management Subject under Techno India University . More than 10 + years’ experience in FMCG Supply Chain CII Certified Supply Chain Management Professional MBA Marketing & Finance from Future Business School Post Graduate Diploma in Logistic & Supply Chain from St Xavier’s Post Graduate Diploma in Export ...

NET TO TRANSFER MATERIALS VIA PALLET

To load a container with pallet or palletized loading, reqd a shrink-wrap. Costly Non reusable  Not environmentally friendly  , plastic   The alternative is palletized loading with a net.  Just cover the pallet with net and put nails bellow the pallet. The idea develop and conceptualize to avoid any materials falling down inside container. One time investment Reusable No plastic. Think differently  , save nature  Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Faculty member for Management Subject under Techno India University . More than 10 + years’ experience in FMCG Supply Chain CII Certified Supply Chain Management Professional MBA Marketing & Finance from Future Business School Post Graduate Diploma in Logistic & Supply Chain from St Xavier’s Post Graduate Diploma in Export & Import Management from ICFAI University Certified Industrial Computerized Accountant 

DIRECT TO CUSTOMER

 In the ERA of Covid 19 pandemic, business down, people at home so all we need to think about some different structure altogether. I am working in Cake and Bakery unit, people will consume, but how the product will get cater to customer point directly. The solution we have arrived is to tie up with various courier service, For Ex :- Letter gets delivered then why not materials. If we get registered our product into any modern trade format 25% - 30% margin need to be assured from MRP + freight + Distribution cost. Altogether calculate and spend the money for courier service. Its the fact very low val sku might not get delivered but make a bundle pack, special packaging with a bubble pack and the materials ready to travel. People will go to the website and place the order, prepaid and just need to inform a courier . Materials will get picked from warehouse end get delivered. Benefit we can reach customer to every point of the nation, and digital marketing reqd to promote the same onl...

Wave Theory Supply Chain

 Weave theory is a theory of business development on the aspect of Supply Chain. Wave theory suggest that to establish a operation you need to engulf a model from the nearest support. For Ex :- If I have a full flagged operation to a particular city with the support and model I need to move to sidewise city. The market initially will not accept big things, so need to cater in small then moving slowly. Case Study :- My manufacturing unit in Kolkata West Bengal along with a warehouse, after a established supply chain I will slowly move to Orissa, Bihar & Jharkhand. Initially I will open a small warehouse with small vehicle after getting successfully I will move to Andhra Pradesh, subsequently . In the wave theory suggest of Ocean Wave , initially on the beach the water is coming slowly but after that High tide coming and big waves are coming. The same is applicable to concentrate a business where the reverse logistic will took place. Suddenly jump into a place & became succes...

Supply Chain Gap

  Supply Chain Gap , the materials are not available. Its not easier to found, I am stating the materials not available at retailers point, so in a country like India with so many diversity , its not easy to found the gap. A new way to found the same, develop a APP in Google store or Apple Store. Ask all the employee to download the same, a facility included in app, shoot a video for 30 sec, with GPS location and upload if the competitor are present in the same place or a prospective one for future. Its a way to share idea among the organization. The notification will go to the concern person , the concern need to go to the place and close the issue. After closing, the person raise the issue will get a complementary reward . The small incentive will boost the moral , and the way to close the gap is done, in future if the same persist then some action need to taken, a classic example of Bullwhip effect.  Think in some holistic way. Sumit Chatterjee Senior Supply Chain Manager D...

Automatic or Manual

  Logistic process can be automatic ?  The question is a burning sensation , but the answer is NO, why because its a mix up. For ex :-  If dock height is there you don't need a conveyer to load a vehicle, here the planning of the warehouse bay need to get done firstly .  If your product can get identified from a long distance due to its shape and color, no bar code or scanner reqd. But automation is reqd for invoicing, tracking vehicle etc but if planning can be done beforehand the investment on technology for automation can be reduced. On cost cutting, investment need to done from base stage. like the example stated at dock height where a conveyer buying cost, running cost , maintenance cost etc in long run will be Zero . Another example of Fork lift , is it reqd ? again planning, if the warehouse layout is such where materials is near to bay and proper FIFO with ABC analysis can get maintained then fork lift not reqd. Make the goods packaging in such a way so that ...

Business to Customer Logistics

   In the Covid 19 Pandemic, logistic is a important role to play. For Ex :- As sales down , loadability is a issue  distributor not eger to take volume. Then what's the option  ? Bulk Breaking Arrange courier to deliver the same to pic the materials from warehouse to retailer . Only packaging need to be good to enhance the visibility and damage reduction. On the way it can be ensured that there is no gap in the market. Deal in bulk to reduce freight & calculate margin so in normal distributor did not complain for rate issue. Design a APp and give a advertisement. Think in some holistic way. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Faculty member for Management Subject under Techno India University . More than 10 + years’ experience in FMCG Supply Chain CII Certified Supply Chain Management Professional MBA Marketing & Finance from Future Business School Post Graduate Diploma in Log...

WAREHOUSE CCTV

  In a warehouse CCTV is common, but the main requirement of CCTV is at the loading bay. Mainly a CCTV records a video. For Ex a materials send to a place and after unloading the customer complain that some shortage in the same. If the container seal is ok then the question arise ? Check the video on both end, a quality pic already recoded at the time of loading and unloading will clear all the doubts. In modern mechanism , a cctv can be used as alarm For Ex 1. Driver maintaining safety protocol or not 2. Vehicle condition 3. Theft & pilferage etc. 4. No of person present 5. Picking is done properly or not 6. Night vision also hep to work in low light. A company can have warehouse at various place and operating 24 x 7 . Its not possible to monitor through out the day but the alarm will suffice. Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Faculty member for Management Subject under Techno India University...

FREIGHT COST CALCULATION

  The important question is to how to calculate freight cost ?  The distance from x to y certain transporter want x amount . For Ex take certain parameters before negotiation PER TRIP FREIGHT Kolkata to Guwahati  present mkt rate Rs 60 k Distance 1010 km Approx.3.5 mileage so Diesel 78 / per liter Diesel costing approx. :- = 1010/3.5 = 288 ;  288 *78 = 22.5 k Standard time :- 5 days  So   Driver Salary 20 k , per trip approx. 5 k Maintenance monthly 10 k, per trip approx. 2.5 k EMI :- 20 k monthly, so per trip 5 k So costing coming around 35 k Misc 5 k Approx. 40 k will be grand total On per trip transporter is charging 20 k profit . If the homework is done , you are in a position with the parameters to negotiate and deal with a transporter . Its very much important to negotiate on the right path.  Also keep in mind payment terms , return load and market demand and supply for the same. For ex if there is no return load transporter will charge retu...

WAREHOUSE LAYOUT

  The Warehouse layout is a important  1. Maintain FIFO :- For Ex If a multistoried warehouse latest materials need to keep on the top floor and similarly the maintain the same. 2. Manpower travelling can be reduced if A category materials keep in front. 3. To keep ABC analysis and keep stock accordingly. 4. Heavy materials at the lower will help reduce handling and damage 5. Height of the warehouse is important, a single floor warehouse is being specified, avoid multi storied. In a multistoried, the movement of the goods reduce speed, increase time For Ex :- Travelling via lift or conveyer, pelleting and depleting is also a time wastage process. In every warehouse plan to keep the materials will be different, its based on the product mix. Don't consider the idea racking will not help to increase space, its only increase visibility . Sumit Chatterjee Senior Supply Chain Manager Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division ) Faculty member for Managem...

CONTAINER SPACE TEMPORARY PARTITION

  In a FMCG company , where multipoint delivery is there , container materials getting mismatch after 1st point of delivery. For Ex :-  3 points get loaded, after 1st point unloading, 1/3 of the space became empty, so as the vehicle start moving the 2nd phase materials started falling down, by reaching to 3rd place all the materials get mismatch, materials got damage and when the containers gate getting open materials falling down. You cannot make partition with woods or steel on 3pl hired vehicle. To avoid the scenario , solution is there. Load 1st point and put a full size sticker ( For Ex 9 ft length and 9 ft breath ) with full glue on the back side. As 1st point loading done place the full size sticker from top to bottom and then load the 2nd and 3rd after placing the sticker. As the materials unload on the 1st place, 1/3 rd space get empty , sticker will save some of the materials to fall down and 3rd phase materials intact. The chance of mismatch and damage will reduce. ...

TRANSPORTER SCAM

  Scam in logistics is a very easy source. For Ex  1. In case of rate contract is fixed , at the time of bidding if the rates are leaked. The operation level person if biased for particular for any on service better .  2. In case of clubbing routes rates are fixed on spot can be manipulated 3. In case of Km payment, if actual Km can get differ from actual then manipulation can be possible. 4. In vehicle if tonnage is less , running km diesel get effected freight will differ. 5. If vehicle is underutilized, transporter club other materials, freight get compromised. 6. In signing bill if the authority ask for bribe , actually that get adjusted with bill payment 7. If Ac dept is clubbed with logistic dept, payments of the transporter can be manipulated and bribe became easy. 8. Shortage dispatch and transporter deduction can be a possibility. 9. Claiming false insurance claim might be a option. Clubbing all a proper system need to be implemented . All the rates should be fix...

PALLET CAN HELP TO MAINTAIN FIFO

In a warehouse FIFO maintaining is great issue . Mainly in FMCG warehouse due to shelf life issue   proper FIFO is important. As the warehouse mainly dealt with manpower ( labor ) :- 1. Bar code to keep proper tracking 2. FIFO maintaining person 3. Batch Code etc 4. Education qualification of labor is also important. 5. Extra checking point to ensure the same. But all are mainly cost centric. The easiest way to maintain FIFO is pallet. Use pallet with 2 side open not 4 side. If a pallet is being used with 2 side it will keep in a line. As 4 side opening is not there and 1 pallet back side is cover with 2 pallet, any worker or labour unable to move a pallet from sideways and mix and match will not took place. Materials Dated A coming first and dated B coming 2nd. Materials on pallet getting inserted and 2nd date 2nd pallet.  Materials will get dispatch from back and no FIFO mismatch. A unique concept , test the same in the warehouse , you will get the benefitted.  Sum...

WAREHOUSE MANPOWER COST ANALYSIS

Manpower cost in a manual warehouse is huge. Manpower is a complex thing to handle.  Not only cost, but safety & security, ability to do the work, skill, motive, attendance , regularity ...... many more. To make a proper shift wise break up of manpower is important. For Ex :- Night shift output is less fatigue plays a role. Early morning fatigue and late night hurry is a common. In shift proper handover is also a criticality. So plan manpower mainly on general shift as output is more. Ideally warehouse need to start from 8 am to 9 pm. Overlapping of the shift is necessary as handover timing get reduced. If not necessary avoid night shift. In a warehouse if I consider a FMCG warehouse the ability of the manpower to load or unload didn't depend on the tonnage handling, as for a particular SKU selling more in a month of less weight will showcase a wrong fig on avg " Tonnage handle by per manpower ". Ideally the concept need to be on per car ( Cartoon) handing. Total cart...

CONTAINER SEAL

The picture suffice the all , Container seal is a very common and its widely used for any container loading, mainly for the safety & security .  There are mainly types of seal available in the mkt, in new formulation GPS enabled seal is also available , where tracking can took place as the vehicle move on and any breakage & pilferage , will get noticed. But think in some other way , is there any commercial benefit for the same. Answer will be confusing , but I have a answer about the same.  A well quality sticker reqd, where it will be pasted on the container doors ( 50 % on left & 50 % on right ) after loading. 1. A good quality sticker will showcase your brand while the container moving. 2. Containers back side on road transport is visible for all the passers by . For Ex :- A car / Bike stuck in a road jam , only visible is the container backside. If the backside contains a big colorful decorative sticker your attention will be curved automatically. 3. A good qua...