A STUDY ON PACKAGING STANDARIZATION SYSTEM FOR INBOUND LOGISTICS

A PROJECT REPORT Submitted by R.DINESH KUMAR (412511631031) In partial fulfilment for the award of the degree Of

MASTER OF BUSINESS ADMINISTRATION SRI SAI RAM INSTITUTE OF MANAGEMENT STUDIES CHENNAI

ANNA UNIVERSTIY: CHENNAI MAY 2013

ANNA UNIVERSTIY: CHENNAI BONAFIDE CERTIFICATE Certified that this project report A STUDY ON PACKAGING

STANDARDIZATION FOR INBOUND LOGISTICS is the bonafide work of R.DINESH KUMAR (Reg no. 412511631031) who carried out the project work under my supervision.

EXTERNAL GUIDE : MR.V.NAGARAJA RAO AGM (MPS, Imports & Corp Logistics) ASHOK LEYLAND

INTERNAL GUIDE : Mr K.MARAN HEAD OF THE DPMT SIMS

ACKNOWLEDGEMENT

I would like to thank Ashok Leyland for giving me platform to harness my knowledge and skills in the field of supply chain management and operations by giving me opportunity to work on the project A STUDY ON PACKAGING STANDARIZATION SYSTEM FOR INBOUND LOGISTICS.

I would like to extend my heartfelt gratitude and sincere thanks to Mr. V. Nagaraja Rao and Mr. Srinath Kasam, who guided, encouraged and supported me throughout the project. They were there to help me at each and every moment and his invaluable inputs served as guiding light throughout the project work.

Also I would like to sincerely thank the entire Ashok Leyland Ambattur Unit Team for making the internship as memorable one. I really enjoyed each and every moment working with team and i appreciate the freedom provided to me by Ashok Leyland in working on this project.

R.DINESH KUMAR

LIST OF CONTENTS
CHAPTER NO. TITLE
ABSTRACT 1 ABOUT THE PROJECT 2.1 INDUSTRY PROFILE 2 2.2 INDIAN PACKAGING INDUSTRY 2.3 GLOBAL PACKAGING INDUSTRY 3 4 COMPANY PROFILE INTRODUCTION TO LOGISTICS 5.1 ALAU OPERATION 5 5.2 EXPORTING PACKAGING 5.3 EXPORTING PROCESS 6.1 ALAU COLLECTIONS 6 6.2 MILK RUN COLLECTION 6.3 OFFICE COLLECTION 6.4 INTER UNIT LOGISTICS 7.1 PACKAGING COMPANIES 7 7.2 FLEXOL INDIA PVT LTD 7.3 CHEP INDIA PVT LTD 7.4 GOODPACK PVT LTD 8 9 10 11 POOLING CONCEPT ALTERNATIVE PACKAGING MATERIAL SUPPLIERS PROFILES COMPARISON ANALYSIS CONCLUSION

PAGE NO.

ABOUT THE PROJECT

ABSTRACT Standardization of packaging system with reference to transportable products bestows a host of issues encompassing factors leading to the proper selection of products, their respective quantum and a precise packaging based on the type of product. This research focuses on two contemporary issues regarding standardization of packing system. The first one address the establishment of a cost-cutting mechanism/strategy in selecting a proper package material among various alternatives such as plastic bins, metal bins that comes in different sizes and transporting as well. The type of package material depends on the type, quantum and mass of the products, it is going to carry. In this current milieu, there are lots of vendors who come forward in outsourcing these packaging material to Ashok Leyland. Selecting a proper vendor, based on their quoted price, their experience in the field, their commitment is of utmost important and also is the second issue addressed in this research. A sound comprehension of these issues would obviously contribute towards arriving at profitable scenario and also obliterate the perils leading to inappropriate decision making. Packaging as an industry had grown enormously and had become the value added and mandatory service in the outsourcing industry. In addition to warehousing, Transportation, Inplant logistics outsourcing of packaging & services had emerged recently in the industry. New and innovative business models are evolving in the industry like pay per usage model to pay on rental basis concept. End to EndConcept which involves bundling of services to a single stake holders to leverage the Total Cost of Ownership. Sustainability is achieved by deployment of Environmental friendly packing by emphasizing on 3R Returnable, Recyclable and Reusable materials.

INDUSTRY OVERVIEW

PACKAGING
Packaging interacts with the logistics system in a number of different and important ways. The size of and protection afforded by the package affect the type of material handling equipment used and the level of product damage incurred. The packaging is not only important in the warehouse but also during the transportation. It does not contribute to the products value but on logistics cost is considerable. Packaging is very much important in the logistics and supply chain management, but also important in the other functional areas of the company. Packaging is a concern to marketing, production and legal. To the marketer, packaging may be a method of selling or at least a method of providing product information. Production managers are concerned with the cost of placing goods into the package and package size. The main important function of the packaging is to provide the information about the product it contains. The package must also provide how the material should be handled. Goods stored in the warehouse should have proper identification so that warehouse personnel can easily locate and load the materials correctly. Companies use color codes for the materials to be stored in the warehouse. The company should note the weight of the material in the packaging so that it can be easy for the people to know about the rest of the top material on it. A major concern in the packaging is ease of handling with the handling and transportation. The packaging design should consider maximize the ease of handling the material in the warehouse and during transportation. INDIAN PACKING MANUFACTURING INDUSTRY The highly fragmented packaging industry is estimated at Rs 8,000 crore.The industry is growing at the rate of 22-25 per cent per annum.In the next five years, the sector is expected to triple to around $ 60 bn.The net profit of the packaging industry spurted 104.5 percent during Q3 FY08, against a growth of 29.5 percent in the December '06 quarter.The large growing middle class, liberalisation and organised retail sector are the catalysts to growth in packaging.More than 80 percent of the total.

GLOBAL PACKAGING MANUFACTURING INDUSTRY

The global packaging material and machinery industry generates $500 billion yearly, accounting for between 1% and 2% of gross domestic product in industrialized nations, according to the World Packaging Organization. There are 100,000 packaging manufacturing companies in operation, representing 5 million jobs. Packaging technology has been undergoing rapid development over the past few decades, with consumers reliant on packaging for food safety and transportability in particular. The explosion of supermarkets and convenience foods would not have been possible without developments in packaging.Recent advances in environmentally friendly packaging are helping packaging manufacturers meet demand for recyclable products as consumers seek to reduce waste and limit the harmful impact of modern living on the environment. Sustainability is a major issue for the packaging industry moving forward as companies reliant on the industry are obliged to comply with changing government legislation encouraging recycling. Producing lightweight alternatives to traditional packaging is also key as companies seek to cut transport costs.packaging in India constitutes rigid packaging. The estimated to be around 6 mn tones, of which about 40 percent is consumed by the packaging industryremaining 20 percent comprises

flexible packaging .There are about 600-700 packaging machinery manufacturers, 95percent of which are in the small and medium sector located all over India . Indian packaging machinery exports are rapidly growing India's per capita packaging consumption is less than $ 15 against worldwide average of nearly $ 100.

COMPANY PROFILE
ASHOK LEYLAND
HISTORY The origin of Ashok Leyland can be traced to the urge for self reliance, felt by independent India. Pandit Jawaharlal Nehru, Indias first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter into automotive manufacturing. In 1948, Ashok Motors was set up in Madras by him, for the assembly of Austin Cars. The companys destiny and the name changed soon with the equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. Later, the Hinduja group,a British-based transnational conglomerate started by Indian expatriates, took over the company. Since then Ashok Leyland has had a major presence in the Indian commercial vehicles industry with a tradition of technological expertise and top class quality at affordable prices. Ashok Leyland, the second largest commercial vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment manufacturing buses ranging from 19seaters to 80seaters, trucks in the entire truck range starting from 7.5 tons to 49 tons. The company claims to carries over 60 million passengers a day, more people than the entire Indian rail network. In the populous Indian metros, State Transport Undertakings (STU)usefour Ashok Leyland buses out of every five.

COMPANY ACTIVITY
MISSION GEMBA Gathering for meeting at every morning to discuss about yesterday dispatch and current planning.

MANUFACTURING PLANTS Ashok Leyland has seven manufacturing plants in India. The total covered space of all these plants put together exceeds 650,000 sq m and together employ 12000 personnel. The manufacturing plants are The mother plant at Ennore and a central hub at Ambattur, both in Chennai. Three plants at Hosur, Tamilnadu, viz.Hosur I, Hosur II and a Press Shop (CPPS). Assembly plant at Alwar, Rajasthan. Assembly plant at Bhandara, Maharashtra. State-of-the-art facility at Pantnagar, Uttarakhand.

PRODUCT PORTFOLIO Ashok Leyland, leading the manufacture of heavy vehicles for the past five decades, offers a world class range of trucks, buses, special application vehicles and engines, exports to over 40 countries in the world. The product portfolio of Ashok Leyland is shown below:

ASHOK LEYLAND

BUSES

Ashok Leyland produces buses covering 75 hp to 400 hp, in the price range of Rs. 6.1 lakhs to Rs. 35 lakhs. The vehicles are available in diesel and CNG variant with a capacity ranging from 13 to 67 seaters. Ashok Leyland pioneered various concepts of buses in India, such as the vestibule and double decker buses. The entire range of products is as follows: 1) Viking BS1 4) Cheetah BS2 7) Double Decker 2) Viking BS2 5) Panther Luxury 8) Vestibule Bus 3) 12M Bus 6) Stag Bus 9) Airport Tarmac

10) Luxura Magical India Bus TRUCKS Ashok Leyland manufactures trucks of various capacities that take any task with ease. They are especially suited to Indian conditions, made to negotiate through the Indian terrain that is often unfriendly for trucks. The trucks come in haulage models which can be used in quarries for transportation of sand and earth or as hippo models which can used for application like acid tankers, re-fuellers, containers, transit carrying and recovery vehicles. The entire gamut of trucks includes: 1. Haulage Models 2. Multi axles Tippers 3. Multi axle Vehicles 4. Tractors
5. Ecomet

DEFENCE AND SPECIAL PURPOSE Ashok Leyland produces vehicles for Indian defence and for special purposes, such as

firefighting, carrying ammunitions, recovering and towing vehicles (up to a payload of 7.5 Ton) etc. The vehicles used for defence and special purposes offer superior performance in terms of

speed, acceleration, carrying capacity and capability to perform on the tarmac and off-the-road. The range of products is given below:

DEFENCE VEHICLES 1) Light Recovery Vehicle 2) Stallion 3) Field Artillery Tractor 4) Water Browser
5) Comet

SPECIAL PURPOSE VEHICLES 1) Rapid Interaction Vehicle 2) Hippo Tractor 3) Beaver Tractor and Haulage 4) Hippo Haulage

ENGINES Ashok Leyland manufactures diesel engines in collaboration with world leaders for industrial,power generation and marine applications. The engines are classified into three types based on their applications, as shown below: 1. Engines for special applications Used in pavers, excavators, compressors, etc. 2. Marine diesel engines Used in Trawlers, sailing vessels, speed boats, ferries etc.

LOGISTICS AT AHOK LEYLAND

Ashok Leyland has a vast vendor base and to manage the logistics at its hub, Ashok Leyland has outsourced them to third party logistics service providers namely TVS Logistics and Mahindra Logistics.

THIRD PARTY LOGISTICS Third Party Logistics provider (3PL) is a firm that provides logistics services to companies for part or sometimes all of their supply chain management function. Third Party Logistics service providers typically specialize in integrated warehousing and transport services

that can be scaled and customized to customer needs based on market conditions and the demand and delivery requirements for their products and materials. The use of third-party logistics providers has grown steadily since their inception in the 1980s and continues to grow. Many large organizations have either partially or fully outsourced their logistics operations; however, smaller organizations have been slow to follow. ALAU OPERATIONS Ashok Leyland is operating 7 manufacturing plants spread across India. Ashok Leyland is having a huge supplier base (500+ nos) spread across India. However most of the suppliers are south based suppliers (150-200 nos). Inorder to service to the Northern plants ( PNR / ALW / BHD) AL is operating at Hub in Chennai which is called as Ambattur Hub. Materials are collected thro Milk run collection (AL Scope) or by office collection (Supplier Scope) , which are consolidated at hub and are then dispatched to the respective units in FTL. Milk run collection is being outsourced to TVS Logistics and Hub operations are being done through Mahindra Logistics. Transportation activity is being done by AL-approved transporters key 9 Transporters as per the agreed rates and terms in the contract. Transporters need to ensure for Ontime delivery within the agreed transit days between source & destination ( Sample case as below) -

Milk run collection ALWAR

SUPPLIERS

ALAU HUB

BHANDARA

Office collection

PANT NAGAR

EXPORTING PROCESS
Ashok Leyland is executing Export operations to Russia and Ukraine in SKD form and delivery is being done in KIT-Format. For Export operation AL had outsourced the packaging operation to a third party service provider M/s FLEXOL Packaging Ltd who would execute End to End Packaging activity Packaging activity is being done in two modes 1. Aggregated based Packaging Packaging of Engine, Gearbox, Axles (Front & Rear) and Frame are being done at Ennore 2. Common items Packaging All the other parts apart from Aggregates are being packed at Ambattur hub and are stuffed into the containers.

EXPORTING PROCESS

Receiving material Destuffing Packaging Consolidation

Stuffing

Flow chart of Export operation

Warehouse Consolidation

Stuffing
CFS(Customs procedure) Port of loading

ASHOK LEYLAND COLLECTIONS

1. Milk run collection 2. Office collection 3. Inter Unit Logistics MILK RUN COLLECTION Milk run process, is a logistic technique for the collection and transportation of goods from suppliers by the logistics service provider with a defined delivery route, in which various stops are planned and executed in terms of quantities and timings, rather than awaiting the delivery from the suppliers. In the milk run process the suppliers and the logistics service providers are given the material collection schedule. At Ashok Leyland, TVS Logistics takes care of the milkrun process at Chennai, Coimbatore, Hosur and Bangalore. In the milk run process at Chennai, TVS Logistics collects material from 85 suppliers every day in various areas like Gummidipoondi (two routes), Ambattur (four routes), Guindy, Perungudi, MM Nagar and Point Collection (two routes). All the collected material is consolidated at the hub store wise and the material is loaded in truck the day material is collected. The manifest is created at the hub for all the items in the truck. The next day, material is dispatched from the hub to Ashok Leyland. At Ashok Leyland the material is Inwarded at the gate, Goods Receipt Note (GRN) processed, Quality Control processed (for non-self certified items) stores processed and then the material reaches the assembly line. Before inwarding the material at gate, the manifest is verified at the TVS Logistics office at Ashok Leyland and cleared for errors if any.

OFFICE COLLECTION
Office collection is a logistic technique for transporting the goods from suppliers, in which the supplier is responsible for transporting the goods. The logistic carrier may be owned by the supplier or the goods will be sent by other approved logistics service provider. For these logistics service provider the amount will be paid in the part costing by Ashok Leyland. In this model of supply the schedule is given to the suppliers only. The supplier takes care of sending the material. At Ashok Leyland the material is Inwarded at the gate, Goods Receipt Note (GRN) processed, Quality Control processed (for non-self certified items) stores processed and then the material reaches the assembly line. Before inwarding the material at gate, the manifest is verified for errors if any. If there are any errors, the errors are cleared and then inwarded at the gate.

INTER UNIT LOGISTICS Inter unit logistics is a logistic technique for transporting the goods between various units of Ashok Leyland. TVS Logistics and Mahindra Logistics takes care of the inter unit process. TVS Logistics takes care of the inter unit process at Chennai, Hosur and Alwar units. Mahindra Logistics takes care of the logistics at Bhandara and Alwar units. A manufacturing schedule is devised and given to the production department. The production department at all the units supports each other for the requirement of material. The logistics service provider collects the materials from the production unit and transports it to the required plant. At the plant,the material is inwarded at the gate, Goods Receipt Note (GRN) is generated, and then the material reaches the assembly line. Before inwarding at the gate, the material is validated and cleared for errors if any.

PACKAGING COMPANIES
Project is to focus on study of the Packaging industry, key suppliers and a competitive analysis to assess the competencies in line to matching of the requirements for AL. Few of the Packaging companies profile is studied & created below FLEXOL PACKAGING INDIA LTD Flexol packing india limited founded in 2010 as a young company. Flexol company providing service to ashok leyland for rental per day basis. FLEXOL Packaging India Pvt Ltd is a choiceComplimentarian partner focused on Packaging Solutions. We offer Comprehensive Packing Solutions for automotive, industrial, aerospace, retail,FMCG, health care and agriculture applications. Our commitment to Environment & Society is reflected through Green and Clean Initiatives. We strive to provide the very best value for money to our customers.

i. Foldable Mesh Container

ii. Re Usable Containers

iii. Green Pallet

iv. Foldable Metal Container

CHEP INDIA PACKAGING LTD

Chep is an international company dealing in pallet and container pooling services, serving customers in a range of industrial and retail supply chains. Chep is a leading provider of pallet and container pooling services for the Aerospace, Automotive, Chemical, Consumer Goods, Fresh Food and Manufacturing industries.Chep provides a full range of pallets for pooling, 1 Wooden pallets

Plastic pallets

Display pallets

Automotive folding container

Automotive crates and container

Reusable plastic crates

WHY CHEP
ACCESS VALUE ADDED SERVICE

CHEP serves over 500,000 customer touch points around the world with superior products and technology every day.
GAIN OPERATIING EFFICIENCY

Delays in the supply chain cost every business money. The time spent sorting and inspecting white wood or exchange pallets, cleaning up Durable and innovative pallets and containers reduce product damage; provide an environmentally sustainable platform and save customers time and money. CHEP understands that an efficient supply chain is a competitive advantage teams are continually working on new products and offerings to provide continuous improvement to customers.

BENEFITS FROM OVER 50 YEARS

Chep has pooled pallets and containers for over 50 years. The business has grown from a single country in 1958 to over 50 countries today.
REDUCE PRODUCTS DAMAGE

A shipping platform should not only deliver products to their destinations, but should also provide maximum protection. Chep's durable pallets, RPCs and containers
ALWAYS RECEIVE HIGH QUALITY AND DURABLE PRODUCTS

All chep equipment is designed to withstand the abuses of today's global supply chain. In addition the chep Engineering and Innovation Centre teams are continually working on new products and offering to provide continuous improvements to customers.
USE A WORLDWIDE NETWORK OF OFFICES AND PRODUCTS

CHEP's global reach is unsurpassed, serving over 500,000 customer touch points in over 50 countries from a network of over 744 service centre. CHEP regularly shares learning across regions to leverage best practice for all customers.

USE ENVIRONMENTALLY SUSTAINABLE PRODUCTS

Pooling, the combining and sharing of assets in a common effort, is by definition an environmentally sustainable concept. CHEP has pooled pallets and containers since 1958. Chep only uses lumber from tree farms, which are a responsible and sustainable source of timber. The pooling model encourages the repair and reuse of pallets and broken or damaged components are recycled rather than sent to landfill. Chep makes every effort to operate in an environmentally sustainable manner.

GOOD PACK COMPANY LTD

Good pack a Singapore homegrown company provides a patented unique packaging alternative for bulk cargo to replace wooden boxes and metal drums for cost and environmental advantages. The company is a global company providing cost leading, innovative and creative IBC (Intermediate Bulk Container) supply chain solutions. The company own and operate the world's largest fleet of over 2.6 million steel IBCs, each of which can hold 1.5 tons of goods, leased to MNCs in diverse industries including the rubber and tire, food and chemical industries. Major customers include key tyre and automotive manufacturers, chemicals and juice producers, and general merchandisers. Goodpack IBCs are used in over 70 countries and more than 5000 locations worldwide, and the operations span the globe including Africa, Asia, Europe, Middle East, North and South America and Oceania. Goodpack, with the world's largest fleet of over 2.6 million Intermediate Bulk Containers (GoodPacks), is principally engaged in the business of renting its patented, multi-modal, returnable metal box system called GoodPacks.The company has a worldwide presence and through its global network of subsidiaries and regional offices, provides comprehensive services of delivery & collection of the GoodPack and technical support to all clients globally.

PRODUCTS LEASING SOLUTION

TRIP RENTAL

Under the trip rental agreement, the customer rents the IBC on a per trip basis. The rental period of a trip is based on the start of the Good pack IBC delivered to the customer's pre-specified location till the pickup of IBC by Good pack at the customer's consignee.
TERM RENTAL

Under the term rental agreement, the customer rents the IBC for a period of 1 year or more. During the rental period, the customer is free to use the IBC in any location according to their business requirements whilst being responsible for the maintenance of the IBC. Upon the expiry of the rental period, Good pack will pick up the IBC at the location pre-specified by the customer at the start of the leasing period.

POOLING CONCEPTS
As an alternative to purchasing returnable packaging, provides a pooling service where packaging and logistics are offered at a daily rental fee. The pool is monitored through a webbased application run by Logistics. The packaging circulates in a closed loop so no company in the link will face problems with either unnecessary packaging or investment in physical units. Another major advantage is that hidden costs will be visible and the total cost lower.

The company offers both standardised and customised pool solutions. The standard pool can be provided all over india and customers can be found in many industries. There are also customised pools with tailor-made packaging solutions for customers who do not find standard packaging material suitable for their logistics flows.

THE BENEFITS POOLING FOR THE BUSINESS 1. Reduce operational costs - no capital outlay for one way pallets or shipping platforms. 2. Gain greater budget flexibility as only pay for what you need, when you need it. 3. Solve materials handling requirements with access to advice from industry experts. 4. Meet supply needs during times of seasonal or unexpected spikes as equipment is available on-demand. 5. Reduce staff costs with no pallet procurement or disposal programs to manage. 6. Save on capital expenditure with no obsolete equipment on the balance sheet. 7. Focus on core business, not equipment pooling. 8. Reduce environmental impact with reusable packaging. 9. Save on storage costs by holding less pallet inventory - can collect and return pallets to chep at any time.

COMPARISON AMONG PACKAGING COMPETITORS S.NO DESCRIPTION FLEXOL CHEP GOOD PACK 1 Type of products Re Usable Containers Green Pallet Foldable Metal Container Wooden pallets Plastic pallets Import pallets/export pallets Aviation pallets Container Bins

Pooling Service

Providing

CHEP have been providing for a long period

Not providing 23 years Global Yes Yearly Yes

3 4 5 6 7

Experience Services Reverse logistics Contract Maintenance

2.5 years Domestics Yes Yearly Yes

50 years Global Yes According to demand Yes

From the above comparison made shows that CHEP is the best competitor among the packaging competitor

NEED OF THE STUDY One of major important work in exporting the products is packaging. It is necessary to do right packing for the right product in order to avoid environmental hazards and to deliver the product to the customer as it is recquired. It is important to analyse the packaging quality, supplier and the cost incurring. This study focusses on analyzing various aspects of packaging material.

OBJECTIVE OF THE STUDY

To study the current Inbound logistics operations at Ashok Leyland. To understand and analyze the current packaging operations Cost and competitive analysis on Packaging operations pertaining to AL Profiling of the Packaging vendors

SCOPE OF THE STUDY

The scope of this project is to study the existing method of packaging system in Ashok Leyland hub at Ambattur. This research helps to suggest alternative package to better of space utilization and avoid the maintenance of the packing equipment. Improve CBM & Eco friendly packaging mode.

RESEARCH METHODOLOGY

INTRODUCTION:
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the control of organizations inventory. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study ant it explains why a particular method has been used in the preference of the other methods. The objective of present study can be accomplished by conducting a systematic collection of information. The market research is the systematic design, collection, analysis and reporting of data and findings. This study complies the help of secondary data. The secondary data are collected with the help of relevant books, journals, company documents and internet. RESEARCH DESIGN: The research design used for the study was ANALYTICAL in nature. Analytical research takes information that has been gathered and looks at what it shows such as trends. Analytical Research has strong ability in performing sophisticated stastical analysis and interpreting their findings within the research context. Our findings are based on well-designed and appropriate techniques providing well supported findings adequate for answering complex research questions, planning, decision support, and informative for policy making. We are also experienced in large quantitative and qualitative projects management, ensure that your project will be delivered within time and budget.

1.9.1 ANALYTICAL TOOLS:

COST ANALYSIS

COST ANALYSIS
The analysis made in the above table shows that crate is the more cost effective than carton boxes. Points to note: The existing packaging cost incurred in carton box is 1500 for 50 trips but in crate the cost incurred is only INR 1373 which we saves INR 127 for a month. The expected life of crate is more than the carton box. The expected cost of the crate per trip is calculated using the price of the crate and expected number of trips. Finally the cost of packaging is calculated by using cost of crate per trip.
Dimension 300*200*100 400*300*120 400*300*140 400*300*220 600*400*220 Rev. log cost 0.63 0.72 0.9 1.26 1.8 Cost per bin per trip 9.61 12.13 15.79 17.15 33.66 Total cost per bin per trip 10.24 12.85 16.69 18.41 35.46

Bin type S A B C D

Bin size

Carton box price(INR)

Crate(14403) rate(INR) 27.45 36.50 41.65 45.75 56.95

No.of times using per month

Saving per month

Saving per annum 1524 7560 6831 3294 3417

300*200*100 400*300*120 400*300*140 400*300*220 600*400*220

30 47 52 59 65

50 60 55 65 70

127.5 630 569.25 274.5 284.75

Key Takeaway: Depending on the business requirement the packaging solution needs to be adopted as below a) For shorter distance and long-term association either supplier or AL can invest in Plastic Crates b) For longer distances it is advisable to deploy rental concept depending on the feasibility of reverse logistics and cost factor. c) If cost is the criteria we will be compelled few times to use carton boxes for packaging mode.

ALTERNATIVE PACKAGING MATERIAL SUPPLIER PROFILE

S.NO

SUPPLIER NAME

DETAILS

TYPE OF MATERIAL

TURN OVER

ADDRESS

CONTACT PERSON

Chep india pvt ltd

9176646680(044) 28256052

Wooden pallets,Plastic pallets, Display palletsImport pallets / export pallets,Aviation pallets,Automotive pallets

400 cr

No 6/1 1st Floor, Opp Sankara Nethralaya, Pycrofts GardenRoad, Greames Road, Chennai 6

Mr. Gaurav Kapoor

Good pack india pvt ltd

Tel: 91-22-41517800

Containers,Bins (MB5)product code

50-100 cr

704,7thfloor Mayuresh chambers Sec 11 CBD belapur Mumbai-400 614,india #183/A,3rd Floor,Mount Ponamalle High Road, Kattupakkam, Chennai 600 056.

Mr.Mahendra Mahajan

Flexol packaging pvt ltd

Phone: 04426790933 / 26790932

Foldable Mesh Container Re Usable Containers FoldableMetalContainer

50L

Mr.Madhavan M. C.

M.M carton boxes

09953353347

cartons

65L

Mr.Nagoor Gani

Lion pack

9884788725

CartonBox Manufacturers,PrintedBox 45L

161/146-D, Behind Padi Shivan Temple, Raja Street, Padi, Chennai New-17 Old-9, 2nd Avenue,AshokNagar, Chennai-600083

Ramya

G.J.Traders

9841594819, 9841594817

wooden boxes ,plywood boxes,corrugated boxes

S.R. Enterprises

Manufacturer, Supplier (91)8377802909

corrugated boxes with partition,plain corrugated box,Wooden and Plywood

45L

3/7Reddy Street,ICross Street,Athipet, Ambattur Industrial Estate,Chennai-58 93-135,3rd cross sipcot industrial park,amingikarai,chennai

Mr.A. Sekar

Ever shine wood packaging pvt ltd

9994192249

wooden pallet, wooden box

35L

KEY LEARNINGS: ALAU HUB OPERATIONS Milk Run collection Warehouse operations Packaging standards Transportation & Export operations

CONCLUSION This research help to best alternative packaging solution and providing for efficient supply chain and reduction in material damage, maximum utilization of space. Helps to identify the right vendor as per QCD (Quality, Cost & Delivery).