“A STUDY ON ROLE OF AGILITY IN RETAIL LOGISTICS”

SUMMER INTERNSHIP REPORT SUBMITED TO

VEL’S INSITITUTE OF SCIENCE, TECHNOLOGY AND ADVANCED STUDIES (VISTAS)

(VELS UNIVERSITY)

(Estd.U/s 3 of the UGC Act, 1956)

In partial fulfillment of the requirement

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

KESAVAN.C

(Reg. No. 09305119)

Under the guidance of

MR,MUTHURAMAN, M.B.A., M.PHIL.

SCHOOL OF MANAGEMENT STUDIES (VIBA)

VELS UNIVERSITY

P.V.VAITHIYALINGAM ROAD,

OLD PALLAVARAM, CHENNAI-600 117.

(2009-2011)

________________________________________________________________________

School of management studies (VIBA)

BONAFIDE CERTIFICATE

This is certified that internship report title” study on role of agility in retail logistics” Is Bonafide record of work carried out by KESAVAN (0905119),school management studies, under VELS UNIVERSITY submitted in partial fulfillment of the requirements for the award of the degree of master of Business Administration from the VELS UNIVERISTY.

HOD-management studies (PROJECT DUIDE)

DECLARATION

I K. Anbukumaran, a student of MBA, School of Management Studies, VELS UNIVERSITY

hereby, declare that the internship report on, BIG BAZAARRETAIL STORE, OMR,

BANGALORE. Submitted to the VELS UNIVERSITY in partial fulfilment of the requirement

for the award of the degree of Master of Business Administration is a record of Bonafide

record carried out by me under the guidance of Mr. Muthu Raman, Asst.Prof, School of

Management Studies, VELS UNIVERSITY and no part of it has been submitted for any other

degree or diploma.

Place:

(KESAVAN.C)

Date:

ACKNOWLEDGEMENT

I express my deep sense of gratitude and hearty thanks to my

Honourable Dr. ISHARI K. GANESH, Chancellor of VELS University for providing me an

opportunity of studying in his premier University.

I express my sincere thanks and deep sense of gratitude to our Head of the

Department, School of Management Studies for providing facilities to undertake this project.

I express a deep sense of gratitude to my Guide MrMuthu Raman., Asst.Prof , School of

Management Studies, for her encouragement, support and consistent guidance during the

project work successfully

My heart felt thanks to Mr. providing me a great opportunity to carry out the project

in their esteemed firm.

I am extending my thanks towards Mr.murugan, Manager of logistic department for

his invaluable support and guidance throughout the project work.

I deeply wish to extend my sincere thanks to all my friends and family members for

their encouraging words and timely help.

C.KESAVAN

CHAPTER-I

INTRODUCTION:

In our vels university, every year its conducting an internship program for our first year management students to give the opportunity to known the industrial platform and also management training…

This is really valuable thing for every management students, without practical knowledge they cant do anything, so it is very important thing for our future action & experiments. First year onwards we can learn little bit knowledge about, what is happening in industries, what are the procedure are taking places, how to balance their overcome issues and more, based on our summer program.

It is my responsible duty to assigned the project on “AGILITY LOGISTICS” in bangalore during the period from 14.6.2010 to 3.6.2010.

After completion my project, I got a more knowledge about warehouse activities like transportation, inventory management, and documentation.

INDUSTRY PROFILE:

Logistics is the management of the flow of goods, information and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations).

Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software.

Third-party logistics

Third-party logistics involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in-house. If, for example, a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

The Top 100 3PL Providers chart 2010 .

Reflecting the diverse needs of IL readers, and the frenetic pace of growth of the

market segment, it includes well-known companies, a smattering of 3PL niche providers, and newer companies offering specialized logistics services. They're all listed alphabetically to make it solutions-based resource, rather than to rank one provider over another. Below is the list of companies featured in the Top 100 chart.

3PD, Inc. Inmar CLSA.N. Deringer Jacobson CompaniesAccess America J.B. HuntADS Logistic Services Kane Is AbleAFN Kelron Logistics

Agility Kenco Logistic ServicesAmeriCold Keystone DedicatedAPL Logistics Landstar Global Logs.Aspen Logistics LeSaint Logistics

ATC Logistics Lily Transportation

Averitt Express Logistics Insight Corp.Bender Group LMSBig Dog Logistics

Mallory Alexander

BNSF Logistics Matson Brightpoint Megatrux

C.H. RobinsonMenlo Worldwide Logistics

C.R. England Logistics National Retail SystemsCardinal Logistics Network Global LogisticsCat Logistics New Breed Logistics

CEVA LogisticsNexus Distribution

Comprehensive Logistics NFI IndustriesCornerstone Systems NLMCorporate Traffic Norvanco International

Crowley Logistics NYK LogisticsCRST Logistics Odyssey Logistics & Tech.CT Logistics OHLCTSI One Source Logistics

Damco OOCL Logistics (USA)

DB SchenkerPacer Transport. Solutions

DHL/Exel Pegasus Logistics GroupDistribution Technology Penske Logistics

DSC LogisticsPerformance Team

Dupré Logistics Port Jersey LogisticsEcho Global Logistics Priority Solutions Int'l.Evans Distribution Regal LogisticsDamco RMX Global LogisticsDB Schenker Ruan

DHL/ExelRyder Supply Chain Solutions

Distribution Technology Saddle Creek DSC Logistics Schneider LogisticsDupré Logistics ServiceCraft LogisticsEcho Global Logistics TBB Global LogisticsEvans Distribution TLC-Total Logistic ControlFAC Logistics TMSi LogisticsFedEx Global SC Svcs. TransfreightFidelitone Logistics TransGroupFlash Global Logistics TransplaceForeway Management Tucker Co. WorldwideGENCO Unyson LogisticsGilbert Company

UPS Supply Chain SolutionsYRC Logistics

Company profile:

Agility is one of the world’s leading providers of integrated logistics to

businesses and governments. It Is a publicly traded company with close to

$6 billion in annual revenue and 32,000 employees in over 550 offices and

120 countries. Agility brings efficiency to supply chains in some of the

globe’s most challenging environments , offering unmatched personal service ,

a global footprint , and customized capabilities in developed and emerging

economies alike.

Agility’s commercial division , Agility Global Integrated Logistics

(GIL), Is head quartered in Switzerland and provides supply chain solutions to

customers in technology , retail , chemicals , and other industries . Agility

Defense & Government Services (DGS) offers logistics services to

governments , relief agencies and international institutions worldwide .

Agility Infrastructure group companies primarily focus on

opportunities in the Middle East , Africa and South Asia , providing

infrastructure support in the areas of industrial real estate , customs

optimization , and airline services .

ABOUT AGILITY:

We are a leading global provider of integrated logistics, bringing efficiency to business and government supply chains in some of the world's most challenging environments. We combine a worldwide footprint and customized capabilities to provide unmatched personal service in both developed and emerging economies.

Vision

A new logistics leader meeting the challenges of global trade.

Mission

Facilitating trade through innovative supply chain solutions.

Business Groups

Global Integrated Logistics (GIL):

Agility GIL serves commercial customers in technology, retail, chemicals, and a wide range of other industries.

Defense and Government Services (DGS):

Agility DGS provides logistics services to government and military agencies, relief organizations, and international institutions.

Infrastructure: Agility Infrastructure is a group of companies that handles the support needs of the industrial real estate, customs optimization, and airline services industries, primarily in the Middle East, Africa, and South Asia.

Investor Relations

Publicly listed on Kuwait Stock Exchange and Dubai Financial Market

Ticker symbol: AGLTY 15,000+ shareholders, including institutional investors

Geographic Reach

We have over 550 offices in 120 countries, with a strong and growing presence in emerging markets.

Regional Breakdown

Americas: 100+ locations, 25 countries

Asia Pacific:200+ locations, 24 countries

Europe:140+ locations, 25 countries

Middle East & Africa:100+ locations, 46 countries

Facilities & Operations

2.15 million square meters of warehousing space around the world 5.55 million square meters of open yard storage 8,000-vehicle fleet

PRODUCT PROFILE:

AGILITY is one of leading service provider in 3pl (Third Party Logistics) industries. They are having several centralized centre in all over countries, mainly to offer certain basic necessity services to all at any situation with full of efficiency and effectiveness.

Their major services are;

Retail Logistics Freight Forwarding Project Services Oil & Gas Logistics Marine Services Mining Logistics Charter Services Government Contractor Services

Let’s move on topic now, In agility my study is about warehousing functions at different level of clients. But in Bangalore, they are mainly handling FMCG products.

AGILITY to fulfill the services on retail platform with proper manner and support their clients for the business pitch and also helps to public for their needs of commodities .Their major clients are “SMART” and “MAX”.

• SMART - Super Market

• MAX - Hyper Mark

CHAPTER-II

Scope of study:

I want to know the retail sector so that I preferred this topic. My topic is about

“Role of agility in retail logistics.”

Agility plays the vital role in retail stores. Here we are going to see about how agility can access their supply chain operation and also contributing their valuable logistical services along with smart and max.

Before going this topic let us know the meaning of retail logistics.

SMART:

Smart is a one of the leading Super market in Karnataka, sister concern of M/s. Wadhwan Group of Companies. They have their retail operations widely spread across BANGALORE. They have thirty four locations in Bangalore city, where they have outsourced their logistical activities. Some of the logistical activities like warehousing, transportation, inventory control are taking care by AGILITY (third party logistics service provider / 3PL)

OBJECTIVE OF STUDY:

Based on my observation ,which I selected such a objectives ,that I mentioned below:

Warehouse functioning Fill rate efficiency Benchmarking Man power rationalization

LIMITATIONS OF STUDY:

I never got a chance to go for administrative section due to unforeseen circumstances reason.

Time constraints was also a major problem.

CHAPTER-III

QUALITATIVE ANANLYSIS ON AGILITY:

I got a valuable opportunity to do my internship from agility. They asked me to go for first two weeks in “max” warehouse then rest of the weeks they sent me to “smart” warehouse.

I observed on agility DC( warehouse) functions only because I never got a chance to study about their admin work process. But I hope they also following as it is like MNC(corporate) admin process.

The Following such a things are generally obtain in administrative side that I mention below.

First two weeks observation: MAX

Agility having 1,20,000 sq ft of land for their warehousing function. So they allocated such a space to each client (MAX, SMART,F&V) based on the their business stipulation. Here I monitored the entire max warehouse functions and operations also observed how they received their orders from vendors, how the EDP process takes place, how they store their stock by used material handling equipments.

LAYOUT OF MAX WAREHOUSE

MAX

CABIN

AGILITY

CABIN

EXPIRED GOODS

1 2 3 4

QA

Rest

Room

RECEIVINGDEPT

RPC

TODEPT

EMERGENCY EXIT

FLOW THROUGH STOCKS

STOCKS STOCKS

1 2 3 4

PUT AWAY STOCKS

INBOUND PROCESS

OUTBOUND PROCESS

ALP

METHYL BROMIDE METHOD

DESPATCHING DEPARTMENT

ENTRANCE

ENTRANCE

W A R E H O U S E M A P P I N G

QUALITYASSURANCES

COLDSTORAGE

PANTRY

IN Max warehouse having different level of activities which are takes place like Receiving, EDP, Storing, RPC, Picking, TO(Transfer out) and Dispatching. For this process involves several documents are there

Max major warehouse functions:

In bound functions Inventory management Outbound functions

Inbound:

Generally inbound function can be defined as receiving the goods from the suppliers .

Unloading. Material Handling. Receipt checking. Document verification. Discrepancy Report. GRN(Goods receiving note) Storage (Put away model)

Inventory management:

It is an activity which is occurs in physical vs system. They checking the stock quantity based on system data. Perpetual Inventory.(PI)

Physical vs System.

Indent Receipt.

Put away pick list generation.

Inbound & Outbound MIS Report.

Outbound:

It includes picking , checking ,and dispatching .these activities are done here.

Picking.

Material Handling.

Checking.

Scanning.

Document Preparation.

Dispatching.

Loading.

Transport Co-ordination.

Delivery.

REQURIED DOCUMENTS

Invoice.

PO(Purchase order)

PRD(Pre receiving document)

GRN(Goods receiving note)

Discrepancy report.

Put away & Flow through model’s.

They also following one of the major function namely, like RPC(repacking center)

RPC (Repacking center):

In max warehouse ,food items are purified, shinning by using RPC method. The following food items are involved in this process,

Pulses Rice Wheat Ground nuts Rava

Repacking process:

Food items are classified into two types

MBR3(methyl bromide ) ALP(aluminum phosphate)

Before the repacking process, MBR & ALP operations are takes place, mainly for fumigation purpose.

MBR process has taking nearly 24 hours and its only using for bulk storage. Items which is included in MBR(methyl bromide) that will not goes RPC. certain chambers are available here, for doing purpose of MBR process.

RPC PROCESS :

It was one of major activities in max warehouse, and it carried mainly for food items like pulses and oil nuts. Once a goods inward from the vendor, and it should be monitored by the quality manager, whether that items are standard products or not. If it is good condition then it can be rooted for fumigation process. Fumigation is nothing but to purifying the products and remove the foreign particles by the method of MBR (methyl bromide) and ALP (aluminum phosphate). This fumigation process somewhat different while comparing ALP, because it takes nearly 5 days for fumigation process after that it has go for RPC. There itself to purifying & shinning the products by using Destoner and Conveyor, then its goes to packing area after packing its moves to stacking then it will ready for dispatch. But in MBR process, items which are fumigated that will be directly dispatch to clients. It will not go for RPC so it’s only suited for bulk items.

Receiving

Department

QAQualit

y Assurance OFFICE

(GRN Process)

PRD Process

Fumigation

ALP-5days

MBR-24hrs

DISPATCHING

STACKING

(STORING)

RE-PACKIN

G Department

DESTONERCONVEYO

R

R E P A C K I N G C E N T E R

Aluminium PhosphateMethyl Bromide

STORING

VENDORS

End of the week:

At the end of week we had a video conversation with “Mr.” He is the vice president of agility. Here we had discussed about what we had did in agility past two weeks and also reported everything, what we had observed in agility with him. Finally he instructed such thing and also recommended what we will do on next two weeks and requested to do on study of manpower rationalization, fill rate, ware house mapping and benchmarking. Whom are involved in this video conversation, name are given below:

• C. Kesavan - (VEL UNIVERSITY)• M. Hari Ragan - (VEL UNIVERSITY)• Vimal - (VEL UNIVERSITY)• Ganesh - (VEL UNIVERSITY)• Karthick - (IIL)• Karthickeyan - (IIL)• Charasekar - (IIL)

According to his motivation, I migrated to “smart” warehouse for the purpose of this studies on next two weeks.

Next two weeks observation: In Smart

Activities

In Agility, We have several activities like

Receiving

Checking

EDP(Electronic data processing)

Allocating

Loading

Dispatching

House Keeping

Security Desk

Warehouse Activities

Receiving

Goods Inward

Unloading

Checking & Receiving of goods from the vendors.

Checking

Checking is the activity, where the goods received from the vendors will be checked, according to its quantity and physical state.

EDP (Electronic data processing)

Documentation process.

Data Entry activities.

System Supporting the whole activities.

GRN (Good receipt note)

TO (Transfer Out)

TI (Transfer In) Reverse Logistics

PRN (Purchase Return Note)

Allocating :

In this activity , received products from the vendors will be allocated or segregated to the different location according to the requirement from the client(Store)

Dispatching:

In this activity , allocated products will be dispatched to the particular location(Store) along with TO (Transfer Out)

Loading:

Loading is an activity, where goods will be loaded in the vehicles(Secondary Transport) from the warehouse to the locations(stores)

Reverse Logistics:

Returning of expired goods and the defected goods back to the vendors.

RTV(Returnable to Vendors)

NRTV(Non-Returnable to Vendors)

House Keeping:

Maintaining the warehouse (cleaning it periodically)

Security Desk:

Checking inwards.

Frisking employees, visitors.

Maintaining of all Inbound & Outbound Registers

Control on Gate pass issuance

SMART WAREHOUSE PROCESS MAPPING:

Vendors

Goods

Inward

SMART

Buyer

GRN

TO(Transfer

out)

Allocation

Pick list

StoreDelivery

Dispatching

Allocating

SKUsArrangin

g Location

Wise

AGILITYDC

STORERETURNS

NRTV

RTV

GOOD

BAD

REVERSE LOGISTICS

AGILITY( ON ROLE) EMPLOYEES IN SMART :

S.NO DESIGNATION REQUIREDEMPLOYEES

AVAILABLEEMPLOYEES

1 MANAGER 1 1

2 EXECUTIVES 2 2

AGILITY(CONTRACT) EMPLOYEES IN SMART :

S.NO DESIGNATION REQURIEDEMPLOYEES

AVAILABLE EMPLOYEES

1 RECEIVING 3 3

2 ALLOCATION 13 13

3 EDP(Generating GRN) 5 5

4 LOADING/UNLOADING 7 7

5 HOUSE KEEPING 2 2

6 ESCORTS 8 7

7 DOCUMENTATION 1 1

8 DISPACTCH SUPERVISOR

1 1

9 REVERSE LOGISTICS 5 5

10 SECURITIES 3 3

SMART EMPLOYEES IN AGILITY WAREHOUSE :

S.NO DESIGNATION NUMBERS

1 ASSTIANT GENERAL MANAGER 1

2 DC MANAGER 1

3 QUALITY MANAGER 1

4 EXECUTIVES 2(smart)/4(F&V)

5 EDP 2(smart)/3(F&V)

6 SUPERVISORS 1(smart)/3(F&V)

7 LABOURS 40(smart)/30(F&V)

8 HOUSE KEEPING 3

SMART WAREHOUSE DETAILS

CLIENT’S NAME : SMART

ALOTTED SPACE : 25,500Sq ft

AGILITY EMPLOYEES(On Role) : 2 Members

GENDER RATIO : 4(Female): 43(Male)

TOTAL EMPLOYEES : 47 members

FILL RATE : 95%

CUT OFF TIME : 3:30PM

WORKING TIMINGS : (General Shift - 8AM to 6PM ) (Second Shift - 1PM to 10PM)

FINDINNGS

PROPER ALLOCATION :

Employees must be trained for proper allocation, Since it is an important activity to achieve the efficient fill rate.

Here we do not have more skilled employees in allocation.

To avoid excess and damage of the goods in delivery(Store),allocation must be done properly.

Once the allocation has been done, A team of 2 or 3 people should be assigned for cross checking the products(crates) according to the location.

PIE-CHART FOR SMART

PUT AWAY STOCKS

FLOW THROUGH STOCKS

REDUCE DAMAGE:

Employees should handle goods properly. (Avoid harsh & improper handling)

Damaged crates should be avoid to reduce product damage.

Loading should be done in an effective and proper manner(Secondary Transport)

Skilled employees should be used in receiving process. So that they can find whether the product is damaged or defected , during the receiving of goods from the vendors.

ISSUSE’S IN DELIVERY:

Escort should be provided with a helper. So that delivery can be done effectively.

Each helper will help to unload the product delivery. Whereas, it will also reduce the damages during the unloading activity.

When an escort is committed with the documentation process work during delivery that helper will monitor the products to avoid theft.

SUGGESTIONS

Skilled employees should be assigned for allocation. So that it won’t consume more time.

This cross checking is happening, but not effectively and perpetually.

Heavy weighted should be kept under the crates. So that we can reduce the damage of the products.