case 1 abc cement

7/31/2019 Case 1 ABC Cement

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ITL,Dr.DSinha,IIFT,KOLKATACAMPUS CASESTUDY:ONLYFORCLASSROOMDISCUSSIONS

GLOBALLOGISTICSMANAGEMENT:THECASEOFABCCEMENT

ABC

CEMENT

is

a

French

multinational

and

global

leader

in

Cement

in

building

material

with

a

strong

presenceintheeasternpartofIndia

AsapartofourbrownfieldexpansionatJamshedpur,wehadorderedtheVerticalCementgrindingmill

withLoesche,Germany.

Rotarycomponentssuchasdrivegearbox,grindingrollers&tableweremanufacturedatHamburg,

Germany.(Volume625cum&Netweight417tons)

StaticcomponentssuchasMillstand,baseplateweremadeatShanghai,China(Volume433cum

&Netweight150tons)

Somecomponentssuchasseparatorfixedplateetc.,wereoutsourcedbyLoescheinChennai,India.

ThetaskathandwastotransportthematerialsafelyfromLoeschesworksatShanghaiandHamburgto

Jamshedpur,India.

ThemiscellaneousconsignmentfromChennaiwasmuchsimplerandthereforehandledbyusthrougha

localtransporter.

WhenweanalyzedthemodalityofshippingtheconsignmenttoIndia,werealizedthatwedidnothave

muchexpertise/knowhowonthefollowing

Importformalitiesanddocumentation

Indepthknowledgeofthecountriesinvolved.

Knowledgeofthecarriersandroutes

Risksinvolved

Consignmenttrackingandmonitoring

Q.


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Followingwerethekeychallengesfacedinthetask.PerformanceoftheThirdpartylogisticproviderwas

evaluatedbasedonthesame.

Safetyofconsignment(Accidents/damagesetc.,)

Securityofconsignment(pilferages,lossofdocumentetc.,)

TimelyshipmenttoJamshedpursite.

Crossborderlegalissues

Repacking

/correction

ifreqd

Continuousmonitoring/tracking

Coordinationandnetworkingwithmultipleagencies Equipmentmanufacturerandtheirtransporter,third

partyqualityinspectors,Customs,Carriers,Inlandtransporters.

InlandtransportationEasiestandsafestroute,infrastructurelimitations(Bridges/raillinecrossing/

narrowroads,Congestedandthicklypopulatedareasenroute

Manageenvironmentalissues&liaisonwithcustoms,railways,villagers,highwayauthorities,local

administrationen

route,

police

etc.,

Allocationofresponsibilityatvariousstages

Executionoftheactivityatminimumcost

Q.WHATISROUTINGPLANOFABCCEMENTINDIAPVTLTD.?


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Q.WHATSEAROUTETHECARGOWOULDFOLLOW?


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GLOBALSEAROUTES

(ROUTEDESCRIPTIONATANNEXURE)


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SEAROUTEFROMHAMBURGTOMUMBAIPORT

SEAROUTEFROMSHANGHAITOMUMBAIPORT


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Q. ISTHISTHEBESTROUTING?WHATAREFACTORSFORCHOOSINGAPORT?

INLANDTRANSPORTATIONROUTEFROMMUMBAITOJAMSHEDPUR

Figure:Inlandtransportationroute

(MumbaiPortThane NasikDhuleBandaraRajnandGaonBhilaiRaipurRaigardhGumla

RanchiJamshedpur JojoberaCementPlant)

Q.

CAN

THERE

BE

ALTERNATE

MODE

OF

TRANSPORT


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KUEHNE + NAGEL Projects 2010

Process Steps

Prealert

Arrival of shipment at

destination.

M Filing and B/E processing

Break Bulk Import cargo operation and documentation flow (India)

Customs Process

Logistics Service Provider

Sea Freight project & Import Department Importer

Shipment arrives at destination and

consignee is sent arrival

notice.Delivery Order is picked up

from carrier after paying all charges

and surrendering of the Carrier B/L

Prealert received from

Origin office.Notice of

shipment sent to

Consignee.

Consignee surrenders the

duly endorsed House B/l.

Copies of Master B/L ,House B/L.Invoice

and Packing List sent to carrier for fi ling

ofIGM.Carrierfiles the IGM with customs

prior arrival of shipment at port

Based on the documents submitted by the

carrier's the cus toms approves t he IGMThe consignee forwards the invoice and pa

to K+ N for filing of Bill of Entry with custo

shipment is under some special licence it i

handed over to K+N.

K+N files prior Bill Of

entry and arranges to

send check list to cnee

for confirmation about

duty amount.After

confirmation from cnee

KN arrnange for

assessment of Bill Of

Entry with customs.

Customs checks the Bill of

Entry advises discrpancy ,if

any.


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Delivery of cargo Once duty is paid the Bill of

Entry is endorsed by customsand cargo is released..

K+N picks the Demand Draft for the dutyfrom the consignee and pays same to

customs.

Consignee arranges for

customs duty payable by

Demand Draft once K+N

confirms the duty figure.

Physical examination of cargo

by Customs.Duty figure is

confirmed after completion of

K+N takes permission from customs to open

pkgs for physical examination of the cargo in

port.

K+N pays the port dues if any and gets the

gate pass from port Authorities.K+N arranges

trucking for delivery cargo to consignee

premises.

K+N raises invoice on the consignee

for the services as per agreement and

sends same to consginee for payment.

Cargo received by

consignee's at their

premises

Consignee's arrange for

payment of charges as per

K+N invoice.

Upon receipt of all charges from the

consignee's K+N arranges to send the

Original Bill Of Entry to the

consignee's as this is required by

them for disbursement of foreign

h n

Upon receipt of Original Bill of E

from K+N the consignee's proce

complete their disbursement of

foreign exchange.


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CHOICEOFCARRIER

Figure:Inlandtransportcarrierandunloadingplan


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CONSIGNMENTTRACKING

Figure:Webbaseddashboardforvesseltracking

Webbaseddashboardforcargotracking Inland


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Q.WhatelsecouldbetheMISSTRUCTUREforABCCEMENTPVT.LTD.

State Place

1 19.09 .09 7 3084 RJ01GA- 4604 16 Whee le rs - Low bed v o lv o Maharas ht ra BHUSAWAL 2050 km s ( Appx ) 600 Km s

2 19.09 .09 44 ,3 ,25 3085 CG04JA - 6916 Sem i Low bed Maharas h t ra Ra ipu r 2050 km s ( Appx ) 1150 Km s

3 19 .09 .09 8 ,9 3086 MH- 06 AQ- 2397 Low bed Maharas h t ra MP- MH Bo rde r 2050 km s ( Appx ) 10 50Km s

4 19 .09 .09 1 3087 MH 43U- 566 Hy d ro lic Ex e l Maha ras ht ra Au rangabad 2050 km s ( Appx ) 450 Km s

5 19.09 .09 13 ,35,39 3088 NL- 01D- 2629 Sem i Low bed Maharas ht ra Pa t ha lgaon 2050 km s ( Appx ) 14 00Km s

6 19.09 .09 26 ,11 ,40 ,5 3089 NL- 01D- 1039 Sem i Low bed Maharas ht ra Pa t ha lgaon 2050 km s ( Appx ) 1400 Km s

7 19.09 .09 27 ,28 ,12,17 3090 NL- 01D- 2669 Sem i Low bed Maharas ht ra Pa t ha lgaon 2050 km s ( Appx ) 1400 Km s

8 19.09 .09 10 ,29 3091 RJ- 06G- 5247 Low bed Maharas ht ra AKOLA 2050 km s ( Appx ) 700Km s

9 19.09 .09 2 ,6 ,20 ,33 3092 MH- 06AQ- 320 Sem i Low bed Maharas h t ra Ra igarh 2050 k m s ( Appx ) 1300 Km s

10 19.09 .09 30 ,23 ,22,19 ,4 3093 PB- 06G- 6664 Sem i Low bed - 3 Ex el Maha ras h t ra Ra ipu r 2050 k m s ( Appx ) 1150 Km s

11 19.09 .09 31 ,24 ,21,18 ,34 3094 CG- 04JB - 2074 Sem i Low bed - 3 Ex e l Maha ras ht ra Ra ipu r 2050 km s ( Appx ) 1150 Km s

12 19.09 .09 42 ,32 ,14,16 ,36 3095 MH- 06K- 3520 Sem i Low bed Maharas ht ra Bhanda ra 2050 km s ( Appx ) 950 Km s

13 19.09 .09 15 ,35 ,38 ,41,43 ,45SP1 3096 CG/ 04 / JA/ 4621 Sem i Low bed Maharas h t ra Am rav a t i 2050 k m s ( Ap px ) 700 Km s

Package No.

Ac tua l da te

o f a r r i v a l

(A t Po r t )

Veh ic le num bers Ty pe o f Vehic le

2 n d L o t - A n t w e r p p o r t t o M u m b a i p o r t - To t a l 4 5 P ac k a g es

LR NO.

Sam ple -ABC- CEMENT I nd ia Pvt .L td - Cargo Tracker Sheet

Tota l Dis tanc e f rom

M um ba i po r t t o S i t e (Km s )

D is tanc e c ov e red

f rom Po r t (Km s )

Vehic le Pos i t ionSr.No.


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ANNEXURE

Circum Equatorial Route. With the expansion of the Panama Canal expected tocome online in 2014, a relative parity will exist for the first time between the Panamaand Suez canals. In such a setting, maritime shipping companies may elect toestablish circum equatorial routes in both directions with the usage of high capacity(8,000 to 12,000 TEU) containerships. This high frequency "conveyor belt" couldsupport a significant share of global east-west freight movements in a cost effectiveway. This does not imply a homogeneous service as several different configurationsof ports of call are possible along this route, particularly if a 300 nautical milesdeviation is considered. This enables different circum equatorial networkconfigurations.

North-South Pendulum Connectors. These connectors reflect existing commercialrelations, namely for raw materials (oil, minerals, agricultural goods), such as SouthAmerica / North America, Africa / Europe or Australia / Asia. For container shipping,they are mostly based on the rationale that there is not enough volume to supporttransoceanic services, so cargo is collected / delivered along a latitudinal sequenceof ports. This conventional network will be expanded with transshipmentOpportunities with the circum equatorial route.

Transoceanic Pendulum Connectors. Connect through pendulum servicesselected ports of the facades of large oceanic masses. The three maintransoceanic connectors are transpacific, Asia-Europe (through the Indian Ocean)and transatlantic. The industrialization of Asia (China in particular) has made the

Asia - Europe and the transpacific connectors particularly important.Growth within the BRIC countries (Brazil, India and China) favors the emergenceof a new connector in the Southern Hemisphere between the east coast of SouthAmerica, the Cape of Good Hope and to Southeast Asia.

Transshipment Markets. They connect regional port systems to transoceanic andcircum equatorial routes, mainly through hub-and-spoke services. The relayfunction between long distance shipping services performed by those markets isalso significant. The most important are Southeast Asia, the Mediterranean and theCaribbean. They are referred as markets because the transshipment function canbe substituted to another port. Therefore, a group of ports in a transshipmentmarket are "bidding" for port calls as this type of traffic is difficult to anchor. The

development of circum equatorial routes is thus likely to expand the opportunities oftransshipment, including interlining between these routes.

case 1 abc cement

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