Divine Logscm

 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...

 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 , 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...

  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 ...

   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...

  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...

  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...

  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. ...

  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...

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...

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...

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...

Month end dispatch for any organization is a great deal. Due to sales target pressure month end fig is important, so a huge pressure for dispatch . To handle the pressure some of the important tips are 1. Planning is important, beforehand 2. Keep some extra vehicle to avoid any vehicle failure. 3. Manpower plan accordingly , keep some extra , if OT ( Over Time ) need to provide allow the same. 4.  Keep some extra stock as sku wise hike can be seen. 5. Start early in the morning and divide the team accordingly. The manager need to keep patience and team work reqd. Some of the important tips 1. Keep a cutoff time of order receiving & communicate to the sales team. 2. Give some incentive for the workforce, rotation is important as to get the work proper rest is reqd. 3. Keep extra supervisor and huge pressure lead to fault . 4. Keep a calm & cool environment  5. Deadline is important , by 12 at night every work need to get complete. In a structure organization these sough...

In a FMCG mainly foods, market return and expiry is a common things. In any standardized format many organization want to deal with the scenario in various ways 1. Give some extra % on the margin and return not accepted  2. Bring back the goods etc. 3. Dedicated team to visit the stockiest point to check the same On  the above stated option   are costly. Design a system :- 1. Ask to send the Stockiest (super / distributor ) only wrapper, in any ways without wrapper it is unsold. 2. Make contract with the PTL ( Part Truck Load) provider on per kg cost. 3. Share the contact with the sales team. 4. Keep few labor to count the wrapper. How its beneficial 1. Wrapper return via per kg cost will be minimum, Super only contact the PTL provider and they will arrange the pickup and delivery . 2. Weighing the consignment to check for freight cost & Count the only wrapper is easy. 3. Wrapper mainly plastic, on environment concept can be disposed with norms 4. Market reputati...

On the same I would like to start with an example of famous  Food brand, who sells a different products in USA Market but sold some different product in Asian mkt. The brand sell Burger with Beaf and Pork but customized the same in Alu ( Potato ) Berger in Indian context to avoid any religion sentiments The brand is extremely successful . Like the similar way logistics solution need to customized as per needs. If you consider the concept of Cross Docking as per USA standard or RFID to identify the product in warehouse , that might not be the solution of a clumsy warehouse in Indian concept. To check the same different color packets for several dates can be a solution. In global concept standard container size might be there but that might not be the solution as per your products , as some customized container can enrich some more values for your value chain. Logistics solution will be as per ground realty , Recently I visited a case  where a FMCG organization is operating via ...

In any FMCG organization specially country like India company mainly focused on festive occasion. Like special festive pack for Diwali , Rakhi , Christmas & EID etc. To deliver the materials on time to ensure it went to retailer place with proper timing is important. To escalate the same materials need to plan well in advance. Its mainly 2 - 3 days sales so long before retailer or distributor will not invest money for the same. After the occasion day the value of the product is Zero ( 0 ) So in the scenario what to do ?  The solution is simple, you need to have a track. 1. Send the materials to a particular space 2. Track the materials on daily basis about the movement. 3 Demand forecasting for the same might not be affective so tracking on every day basis reqd. 4. As the day approaching and materials not getting sold as expected start price discount & other sales promotion. 5. After the occasion day materials need to get lifted and a strong reverse logistic should work. 6....