Logistics Case

(PROJECT WORK FORMATS)

Report

On

Title ("Cost Minimization for VRL Logistics")

Prepared by

Name: Pradyumna.S.....................

Registration No: EPG5-01081239

Under the Guidance of Dr. Prof Srinath Krishna............

In partial fulfillment of the Course: Project Work

In Term - IV of the Executive Post Graduate Program in Global Management

Class of January 2008

Abstract

The ability of an organization to effectively move and store materials from and to a

complex network of suppliers and end users is not a simple task, and the success of

any world class supply chain is heavily dependent upon the effectiveness of its logistics

network and delivery capability; in essence, its logistics function, comprised of

inventory, warehouse, and transportation management.

Do you know how your logistics organization compares to your industry peers? Do your

performance metrics indicate you are a 1st quartile performer, or perhaps a 4th

quartile one? How much improvement could be made in your logistics organization in

terms of cost, quality and service.

Managers are finding creative ways to mitigate supply chain costs while maintaining operational efficiency. New approaches, technologies, and methodologies are aiding with these cost-cutting measures. Use of a third party logistics provider (3PL), radio frequency identification (RFID) rentals, and attribute-based demand planning can drastically reduce supply chain costs and increase customer satisfaction.

The main aim of this project is reduce operating cost for running Logistics operation. The project has been implemented by using Supply chain and logistics concepts.

We concentrate here mainly on 3PL operation for running Logistics. Third-party logistics (abbreviated 3PL) providers are able to take over the supply chain functions of businesses and manage them better in many cases than what the companies could do on their own.

As a 3rd Party Logistics Provider (3PL), creating high customer service levels and maintaining a healthy profit margin depends on being able to maintain accurate and efficient inventory and warehousing practices. Profitable freight services also depend on your ability to conduct error-free, on-time shipment handling and information at the warehouse level.

To broaden your services to meet the needs of current and future customers, you need to implement and integrate information technologies. In this way you can create real-time visibility and transaction capabilities over the internet and develop collaborative relationships with your customers and their business partners.

As a small to medium sized 3PL you need a system that can meet or surpass that of your bigger competitors, but at a price point that lets you protect your capital.

Chapter-1 Introduction to Supply Chain and Logistics

1.1 Supply Chain 6

1.2 Introduction to Logistics 6

1.3 Third Party Logistics 7

1.4 Top 10 Logistics Companies of India 10

1.5 Logistics Operation 14

1.6 3PL Operations Optimization 15

Chapter-2 VRL Logistics

2.1 VRL Business Overview 16

2.2 Purchase of Vehicle 17

2.3 Factors affecting VRL Road Transportation 19

2.4 VRL Strategy 21

2.5 Warehousing 23

2.6 Express Cargo 24

Chapter-3 Cost Minimization

3.1 The fuel efficient strategies 26

3.1.1 Maintain up-to-the-minute diagnostic status 27

3.1.2 Enable connectivity and real-time communication 27

3.1.3 Decrease idling