School Of Business

PROJECT REPORT

TRAPPING EXCEPTION AND FAILURE STORIES IN HUB

OPERATION- QUALITY ISSUES.”

IN

SAFEXPRESS AMBALA

For The Partial Fulfillment of the Requirement for the Degree Of

“MASTER OF BUSINESS AND ADMINISTRATION”

SUBMITTED TO:

SCHOOL OF BUSINESS

ITM UNIVERSITY, GWALIOR (M.P)

SUBMITED BY:

SIDDHARTH BOLE

M.B.A (SCM) (6th tri-sem)

ROLL NO- MBAN1MG15085

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DECLARATION

I Siddharth bole (MBAN1MG15085) student of MBA (SCM) VIth trimester, hereby

declare that I have submitted my report on “Trapping exception and failure

stories in HUB operation- Quality issues.” This report is submitted by me under

the guidance of Mr. Ankit Singh, Mr. S.K.Yadav, and Prof. Somen Mitra (H.O.D)

of ITM University. I have submitted this report for the partial fulfillment of the VI th

Trimester of MBA (SCM).

SIGNATURE

Siddharth bole

(MBAN1MG15085)

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CERTIFICATE

This is to certify that Siddharth bole (MBAN1MG15085) student of MBA

(SCM) VIth trimester has submitted his report on “Trapping exception

and failure stories in HUB operation- Quality issues.” For the partial

fulfillment of the VIth trimester of MBA (SCM) and submitted a satisfactory

report of the Project. This work has not been submitted in part or full to this

or any other university for the award of any degree or diploma to the best of

knowledge. We wish them success in the future.

Signature

Prof. Somen Mitra

(H.O.D)

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ACKNOWLEDGEMENT

Thanking is formality and sometimes a necessity, nevertheless an essential part of

any project report. The list of expression of thanks no matter how extrusive is

always in complete and inadequate. This acknowledgement is no exception.

One of the best parts of writing a project report is the opportunity to thank those

who have contributed to it. This project report has been made possible through

direct and indirect co-operation of mentors. I especially with to acknowledge the

following people who reviewed the project. Thanks for the most perspective and

helpful comments.

I sincerely thank to Mr. Ankit Singh, Mr. S.k.Yadav” for his support and

Valuable Guidance & also express my gratitude for his precious help during the

entire training session.

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TABLE OF CONTENTS

1. INTRODUCTION TO LOGISTICS

• Objective of study

• Scope of the study

• Meaning of logistics

• Origin and definition of logistics

• Importance of logistics management

• Logistics management and supply chain

2. BACKGROUND OF SAFEXPRESS

• The company profile

• History of SAFEXPRESS

• Mission, vision of SAFEXPRESS

• Type of business

• Service of SAFEXPRESS

3. TRAPPING EXCEPTION AND FAILURE STORIES IN

HUB OPERATION- QUALITY ISSUES.

• Research analysis (fishbone diagram)

4. CONCLUSION.

5. BIBLIOGRAPHY.

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INTRODUCTION TO

LOGISTICS

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OBJECTIVE OF THE STUDY

The objectives of the Project are: PRIMARY OBJECTIVES

.

● Trapping exception and failure stories in HUB operation- Quality issues.

SECONDARY OBJECTIVE

● To know about Logistics Industries

● To know whether the customers are satisfied with the existing range of service pattern.

SCOPE OF THE STUDY:

In order to understand the concepts of logistics in terms of practical usage and to glimpse

into the how a real company or organization uses logistics as a formidable tool to gain

customer satisfaction, reduce overall cost and increase efficiency I selected

“SAFEXPRESS” the India leading courier Service Company. The study is done only how

SAFEXPRESS use logistics system effectively. There are following strength and weakness of

SAFEXPRESS.

COMPANY STRENGTHS

Credit & Retail basis pricing strategy

Good brand presence in India

It has great amount of Creative Service ideas

“Largest Logistics service Provider in India” by Limca Book of Records in 2002

Has a reach to all 627 districts in 35 states and union territories in India

It has more than 3600 GPS-equipped all-weather proof, containerized vehicles

COMPANY WEAKNESSES

Marketing and advertising is lesser than global brands

Lower adoption of advanced technology

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COMPANY OPPORTUNITIES

Diversification in more innovative services

Increasing firms in manufacturing industry

It has 3600 weather proof ISO-9002 vehicles which can be used for increasing range of

services.

COMPANY THREATS

Big competitors with advanced technology

Unorganized transportation sector

Entry and penetration of international players and domestic players

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INTRODUCTION

MEANING OF LOGISTICS:

Logistics is concerned with getting the products and services where they are needed and when

they are desired. It is difficult to accomplish any marketing or manufacturing without logistical

support. It involves the integration of information, transportation, inventory, warehousing,

material handling, and packaging.

The operating responsibility of logistics is the geographical repositioning of raw materials, work

in process, and finished inventories where required at the lowest cost possible. Logistics is

practiced for ages since organized activity began. Without logistics support no activity can be

performed to meet defined goal. The current challenge is to perform logistics scientifically in

order to optimize benefits to the organization. Logistics is a planning function of management.

Logistics function is concerned with taking products and services where they are needed and

when they are needed.

LOGISTICS MANAGEMENTS:

Logistics management is that part of the supply chain which plans, implements and controls the

efficient, effective, forward and backward (reverse) flow and storage of goods, services and

information between the point of origin and the point of consumption in order to meet customers'

requirements rather to the customers’ delight. A professional working in the field of logistics

management is called a logistician.

Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing

complexity of supplying one's business with materials, and shipping out products in an

increasingly globalize supply chain, calling for experts in the field who are called Supply Chain

Logisticians. This can be defined as having the right item in the right quantity at the right time at

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the right place for the right price and to the right target customers (consumer); and it is the

science of process having its presence in all sectors of the industry. The goal of logistics work is

to manage the fruition of project life cycles, supply chains and resultant efficiencies. Logistics is

Concerned with getting (or transmitting) the products and services where they are needed or

when they are desired. It is difficult to accomplish any marketing or manufacturing without

logistical support. It involves the integration of information, transportation, inventory,

warehousing, material handling, and packaging. The operating responsibility of logistics is the

geographical repositioning of raw materials, work in process, and finished inventories where

required at the lowest cost possible.

ORIGIN & DEFINITION OF LOGISTICS:

The term "logistics" originates from the ancient Greek "Zóyoç" ("logos"—"ratio, word,

calculation, reason, speech, oration"). Logistics is considered to have originated in the military's

need to supply themselves with arms, ammunition and rations as they moved from their base to a

forward position Logistic on. In ancient Greek, Roman and Byzantine empires, there were

military officers with the title‘s’ who were responsible for financial and distribution of supplies.

The Oxford English dictionary defines logistics as: “The branch of military science having to

do with procuring, maintaining and transporting material, personnel and facilities.”

The American Council of Logistics Management defines logistics as” the process of planning,

implementing and controlling the efficient and effective flow, and storage of goods, services and

related information from the point of origin to the point of consumption for the Purpose of

conforming to customer requirements.”

IMPORTANCE OF LOGISTICS MANAGEMENTS:

Logistics is the bed rock of trade and business.

Without selling and or buying there can be no trade and business. Buying and or selling

takes place only when goods are physically moved into and or away from the market.

Take away logistical support trade and business will collapse

Integrates logistical activities

In conventional management environment, various activities of logistics work in isolation

under different management functions. Each pocket trying to sub optimizes its objectives at

the cost of overall organizational objectives. Purchasing trying to purchase at minimum

price at the cost of what is needed by operations. Operations produce large quantities at

minimum production cost ignoring demand leading to doom inventory. Logistics function

of management brings all such functions under one umbrella pulling down inter

departmental barriers.

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Competitive edge:

In the fiercely competitive environment logistics provides the edge. Due to technological

revolution most of the products are moving into commodity markets. In a commodity

market where price is controlled by competition, where there is no product differentiation

in terms of quality parameters like performance & reliability, where brands are almost

irrelevant, competitive edge is that of availability of product and service in terms of time,

place and quantity.

Leads to customer satisfaction

Through superior customer service. Organizational objectives of P [Productivity],Q

[Quality],C [Cost],D [Delivery],E [Employee Morale],F [Flexibility],S [Safety],H

[Health],E [Environment] are set to meet customer expectations.

Supports critical functions like operations and marketing

Strong logistics support enables a company to move towards JUST IN TIME production

system for survival in a highly competitive market

LOGISTICS MANAGEMENTS AND SUPPLY CHAIN:

SCM and logistics management, the definitions made by the Council of Supply Chain

Management Professionals, CSCMP (former Council of Logistics Management, CLM)

SCM is defined as “Supply chain management encompasses the planning and

management of all activities involved in sourcing and procurement, conversion, and

all Logistics Management activities. Importantly, it also included coordination and

collaboration with channel partners, which can be suppliers, intermediaries, third-party

service providers, and customers. In essence, Supply Chain Management integrates

supply and demand management within and across companies “Supply chains

encompass the companies and the business activities needed to design RFD n, make,

deliver, and use a product or service. Businesses depend on their supply chains to

provide them with what they need to survive and thrive. Every business fits into one or

more supply chains and has a role to play in each of them. The pace of change and the

uncertainty about how markets will evolve has made it increasingly important for

companies to be aware of the supply chains they participate in and to understand the

roles that they play. Those companies that learn how to build and participate in strong

supply chains will have a substantial competitive advantage in their markets. Supply

chain management is the coordination of production, inventory, location, and

transportation among the participants in a supply chain to achieve the best mix of

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responsiveness and efficiency for the market being served. There is a difference between

the concept of supply chain management and the traditional concept of logistics.

Logistics typically refers to activities that occur within the boundaries of a single

organization and supply chains refer to networks of companies that work together and

coordinate their actions to deliver a product to market. Also traditional logistics focuses

its attention on activities such as procurement, distribution, maintenance, and inventory

management. Supply chain management acknowledges all of traditional logistics and also

includes activities such as marketing, new product development, finance, and customer

service. In the wider view of supply chain thinking, these additional activities are now

seen as part of the work needed to fulfill customer requests. Effective supply chain

management requires simultaneous improvements in both customer service levels and

the internal operating efficiencies of the companies in the supply chain. Customer

service at its most basic level means consistently high order fill rates, high on-time

delivery rates, and a very low rate of products returned by customers for whatever

reason. Internal efficiency for organizations in a supply chain means that these

organizations get an attractive rate of return on their investments in inventory and other

assets and those they find ways to lower their operating and sales expenses.

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BACKGROUND OF

SAFEXPRESS

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COMPANY PROFILE

Safexpress have a Integrated Logistics Management. It is our 3PL Product that

optimizes your company’s supply chain. First, we examine the linkages between your

suppliers, producers, buyers, intermediaries and end users in order to identify time and

cost inefficiencies. Next, we deploy our unique mix of local know-how, global practices

and cutting-edge technology to provide integrated supply chain solutions. These range

from specific services such as warehouse management, statutory compliance and

invoicing - to an entire gamut of third party logistics services.

Safexpress works and carries on the philosophy of 'Custodians First

Carriers Later’. We sincerely abide by our corporate philosophy on the subject.

Safexpress has an all risks cover - Carrier’s Risk offer, which unburdens the customer

of his worries of losses in transit. On minimal extra charge of Risk Charges, we cover

your valuable shipment against all sorts of transit losses including fire, flood, damage,

accident, shortage, etc.

The Latest of the material handling equipment are used at Safexpress' hubs to ensure

safety and remove Laxity from material handling. Equipment including hydraulic hand

pallet trucks, dock levelers, trolleys, fork lifts’ multilevel pallet stackers are used by

Safexpress. Chain Pulleys and Cranes handle consignments which are not possible by

smaller equipment’s to man oeuvre.

It might not be out of place to mention here all the hubs of Safexpress are on platform

level height. Any Logistician will understand and appreciate the essentiality and

importance platform level warehouses have for material handling.

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Pawan Jain

Chairman and Managing Director

Safexpress

Anil Sayal

General Manager

Safexpress

Safexpress started its business as a door-to-door service in 1995 with 4 routes, 9

offices, 12 container mounted vehicles and 20 employees.

Safexpress' door-to-door services include niche products like DOD and To-Pay

freight.

After one year i.e. in 1996 Safexpress opens super hubs at Delhi, Mumbai and

Bangalore.

Next year Safexpress launches Integrated Logistics Services. Our first ILS client is NIIT;

the first international ILS account is signed with Hilts from Europe. Spurred on by a

surging domestic economy, Safexpress extends its fleet to 250 and number of stations to

290. Safexpress Private Limited emerges as an independent entity

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Then in 1998 Safe air and Safe box are launched, setting a new standard in value added

cargo services. All hubs are connected through web-based software. In 1999 Having

grown by over 300%in 4 years without compromising quality, Safexpress is awarded the

Golden Peacock Award for quality and innovation in Logistics Management.

In 2000 Pilot run for GPS starts on 28 routes. Also Safexpress reaches the 350-

destinations mark and the fleet crosses 1400. Again 2001 Safexpress upgrades and

launches a whole lot of features on www.safexpress.com including ePod, Virtual Cargo

and Privileged Member.

In the year 2002, 2003 Safexpress was declared India's "Largest Logistics Service

Provider" by Limca Book of Records. In 2005 Safexpress bags the MICO: Power of We

Award for excellent service in logistics. In the same year Safexpress fleet crosses 3000

mark.

Next year in 2006 Safexpress was awarded by ADC Krone for providing best

logistics services and in same year Safexpress bags prestigious RAI's (Retailers

Association of India) Award for Best Logistics Service Provider.

HISTORY AND BACKGROUND OF SAFEXPRESS

1995 Safexpress launches as a door-to-door service with 4 routes, 9 offices, 12

container mounted vehicles and 20 employees.

Safexpress' door-to-door services include niche products like DOD and

To-Pay freight.

1996 Safexpress opens super hubs at Delhi, Mumbai and Bangalore.

1997 Safexpress launches Integrated Logistics Services. Our first ILS client is

NIIT, the first international ILS account is signed with Hilt from Europe.

Spurred on by a surging domestic economy, Safexpress extends its Fleet to 250

and number of stations to 290.Safexpress Private Limited emerges as an

independent entity.

1998 Safe air and Safe box are launched, setting a new standard in value added

cargo services. All hubs are connected through web-based software.

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1999 Having grown by over 300% in 4 years without compromising quality,

Safexpress is awarded the Golden Peacock Award for quality and innovation in Logistics Management.

2000 Pilot run for GPS starts on 28 routes.

Safexpress reaches the 350-destinations mark and the fleet crosses 1400.

2001 Safexpress upgrades and launches a whole lot of features on

www.safexpress.com including epod, Virtual Cargo and Privileged Member.

2002 Safexpress declared India’s “Largest Logistics Service

Provider”

By Limca Book of Records 2002.

2003 Safexpress declared India’s “Larges Logistics Service

Provider” by Limca Book of Records 2003.

Mr. Pawn Jain, CMD, Safexpress, becomes one of the finalists in the prestigious

Envy’s Entrepreneur of the year Award.

2004 Safexpress inaugurated its 500th scheduled delivery location Safexpress

bags the Franchise Awards04 for excellence in Team Work.

2005 Safexpress bags the MICRO: Power of We Award for excellent service in

logistics

Safexpress fleet crosses 3000 mark.

2006 Safexpress awarded by ADC Krone for providing best logistics Services.

Safexpress bags prestigious RAI’s (Retailers Association of India) Award for

Best Logistics Service Provider.

MISSION, VISION & QUALITY OF SAFEXPRESS

MISSION

We shall adopt and internalize a work culture which demonstrates a "we can we will"

attitude to reflect in our daily responsibilities so as to far exceed our objectives,

consistently striving towards market dominance. We will create historical landmarks

forming a strong edifice for the future overcoming all obstacles pro-actively as our

personal responsibility and commitment to create delight for the customer with

impeccable personalized services.

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VISION

To be a conscious learning organization maintaining flexibility for change so as to

provide the most customized solutions. Striving towards global market share whilst

maintaining dominance in the domestic market through good HR practice and

excellent customer service.

QUALITY

“A quality service relies upon constant customer interaction and feedback.

An immediate response to the changing environment with pre-defined business processes

managed effectively and efficiently leads to the highest output from the lowest input and

this is the strongest measure of quality. The best certification of a quality organization is

the measurement of the scale of the smile on the customers face”

TYPE OF BUSINESS

Indian Economic Scenario today marks the emergence of total chaotic market with lot

of competitors, piling stock of products, lowering margins, taxation changes and more.

In the present situation what is needed to see the blue?

The ‘way to higher profits’ comes from streamlining the channels and outsourcing the

segment of business which is not the core focus or expertise of the company.

One such fragment of business model is Supply Chain. Being a medium of linking

product to market, a robust model of supply chain management ensures a better ‘TAT’

(turnaround time), low inventory holding cost and less of damages.

Over the time discipline of business logistics has advanced from the warehouse and

transportation dock to the boardroom of leading Global Enterprises.

Supply Chain has to be viewed not only as material and information pipeline but as

integration of logistics with the human factors that need more attention to be paid to

understanding, creating and managing demand more effectively.

Safexpress works on the Value Chain concept using a framework for examining

linkages between suppliers, producers, buyers, intermediaries and end users.

Safexpress, India’s leading logistics company offers Integrated Logistics Management,

Express, Air, Multi-modal, Door-to-Door, time definite delivery and consultancy

services. The company also offers e-logistics and customized solutions for e-business.

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SAFEXPRESS SERVICES

➢ EXPRESS

Safexpress service is an express service which involves movement of cargo in all-

weather proof sealed containers on feeder and express routes. The service is time definite

with a published transit schedule covering more than 550 destinations nationwide and

provides the flexibility for surface, air and multi-modal connectivity with a wide reach

associated with Indian airlines and air taxi operators such as jet airways, Sahara etc.

➢ DRAFT-ON-DELIVERY

Draft on delivery is an unparalleled value-added service wherein the seller can dispatch

goods through Safexpress to the buyer and be assured that the delivery would take place

only when the draft has been collected.

In the Safexpress DOD system pre-alerts are sent to the consignee to allow reasonable

time for the draft to be made, thus meeting the desired objective of express transit with

the amount ready for collection.

➢ ALL RISK COVER

The management of Safexpress hereby undertakes and declares that:

“The company would redeem the value of the loss in the uneventful case of any shortage

or damage to the consignment whilst in the custody of Safexpress, subject to the risk

charge having been paid by the sender or the recipient as per the company policy. The

amount corresponding to the loss as declared would be paid by the company to the

sender or the recipient as required without waiting for any request for the same.”

➢ SAFEBOX

The safe box comes in two convenient sizes of 17” x 17” x 12” and 16” x 12” x 9” easily

accommodating up to 20 & 10 kgs respectively of your cargo.

The robust design is further reinforced with internal insulation for safety of your cargo.

So you save on packaging cost and for a nominal amount it is ready for delivery with an

auto insurance up to Rs. 5000 absolutely free of cost.

➢ SAFEAIR

To ensure that time sensitive cargo reaches the destination through a faster mode meeting

all your requirements for the time definite deliveries. Safe air connects your cargo

through airlines, Atos and uses the services for morning and evening flights to provide a

wide variety of connectivity to suit different market cutoffs.

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➢ ILM

Safexpress works on the value chain concept using a framework for examining linkages

between suppliers, producers, buyers, intermediaries & end users.

Safexpress ensures the success of the entire chain, marrying local knowhow with the

best global practices, technology & perspective

➢ CONSULTING

Safexpress offers value added services beyond physical operations in the form of

logistics consultancy covering a wide spectrum of the Indian economy.

The company plays a pivotal role in guiding diverse market segments on existing and

recommended logistics models with various simulation modules to map transactions

using historical data and providing befitting supply chain solutions.

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PROJECT

Trapping exceptions and failure stories in HUB

operation-qualities issues.

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Ishikawa diagram

One of the Seven Basic Tools of quality

First described by: KAROU ISHIKAWA (Tokyo, Japan)

Purpose: To break down (in successive layers of detail) root cause that

potentially contribute to particular effect.

Ishikawa diagram (also called fishbone diagram, herringbone diagrams,

cause- and-effect diagram, or Ishikawa) are causal diagram created by

Kaoru Ishikawa (1968) that show the cause of specific event. Common uses

of the Ishikawa diagram an overall effect. Each cause or reason for

imperfection is a source of variation. The categories typically include

People: Anyone involved with the process

Methods: How the process is performed and the specific requirement

for doing it, such as policies, rules, regulation and laws.

Machines: Any equipment, computers, tools, etc. required to

accomplish the job

Materials: Raw material, parts, pens, paper, etc. used to evaluate its

quality.

Environment: the condition, such as location, time, temperature, and

culture in which the process operates.

There are four steps to using the tool.

1. Identify the problem.

2. Work out the major factors involved.

3. Identify possible causes.

4. Analyses your diagram.

And this method is particularly useful when you’re trying to solve complicated problems.

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Explanation of the concept of fish bone/ Ishikawa diagram in HUB

operation?

There are situations where we need to analyse what caused a failure or

problem in a HUB operation. Fish bone or Ishikawa diagram is one of

the important concept which can help you list down your root cause of

the problem. Fish bone was conceptualized by Ishikawa, so in the

honour of its inventor this concept was named as Ishikawa diagram.

Inputs to conduct a fish bone diagram comes from a discussion and

brain storming with people who were involved in the project. The below

figures show how the structure of the Ishikawa diagram is. Below are a

few fish bone diagrams of HUB operation. The main bone is the problem

which we need to address and to know what caused the failure.

With the help of few pictures, this concept has been explained. It is not

my creation. However, I have done little effort to collect these pictures

from internet. I do not have any copy right on these pictures. But what I

have observed in Indore warehouse HUB I have explained and the

bottleneck were arising in the process I have tried my level best up to

best of knowledge to solve the problem.

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I have figured out three factors in Indore Hub they are as follow. 1. Late delivery.

2. Lack of customer responsiveness.

3. Lack of technology. Customer lose/profit/poor

4. Lack of proper training. qual.

1. Late delivery

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In this the main causes in late delivery are.

• Shortage of vehicle.

• Late document generate in warehouse.

• Slow loading- unloading.

• Miscommunication under the team.

• Not able to handle large order.

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Lack of responsiveness to customer

The main causes regarding quality issue are as follow.

• Shortage of equipment.

• Not highly upgrade with technology.

• Not proper utilization of warehouse space.

• Poor handling of material.

• Wrong labeling.

• Shortage of efficient of MHE.

• Not able to use maximum height of building and space.

• Most of the works are manually handled.

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• Not having efficient software.

• Inspection is not proper.

• Lack of proper training to ground level worker.

• Not proper packing of material.

EFFECT The effects of the above causes are as follow.

1. Lose to customer.

2. Decrease in profit.

3. Bad reputation in market.

4. Not able to meet deadlines.

5. Poor quality production.

6. Operating cost of warehouse increases.

7. Not proper breaking of bulk and consolidation.

8. More time consuming.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

a) Logistics and Supply Chain Management- Written by Donald Bowersox.

b) Indian Logistics Industry” Summit Sharma – co-founder of GOBOLT, a tech

logistics company.

c) BUSINESS LOGISTICS – BARDI

d) Elements of Logistics Management- S.D.APHALE

WEBSITES:

1. www.google.com

2. www.logisticmanagement.com

3. www.Wikipedia.com

4. www.safexpress.com

5. www.logisticworld.com