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ORGANIZATION
ITC LIMITED. K. Aravind (16010121135)
Kurraaravind94@gmail.com
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ITC LIMITED
Study on
ITC ltd.
Hyderabad
Submitted by
K. Aravind
16010121135
(Associate professor)
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ITC LIMITED
DECLARATION
This is to declare that the report titled Study of WD Infrastructure & How to Reduce Turnaround Time (TAT)
for ITC WSP vehicle has been made for the partial fulfilment of the Course: Industry Internship Programme
(IIP) in Semester II by me at ITC ltd. under the guidance of Mr. Marisetty NagaSai as Industry Guide & Prof. N.
Arun Kumar as faculty guide.
I confirm that this report truly represents my work undertaken as a part of my Industry Internship Programme
(IIP). This work is not a replication of work done previously by any other person. I also confirm that the contents
of the report and the views contained therein have been discussed and deliberated with the faculty guide.
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ITC LIMITED
CERTIFICATE
This is to certify that Mr. K. ARAVIND, Registration. No.16010121135 has completed the report titled Study
of WD Infrastructure & How to Reduce Turnaround Time (TAT) for WSP vehicle under my guidance for the
partial fulfilment of the Course: Industry Internship Programme (IIP) in Semester II of the Master of Business
Administration.
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ITC LIMITED
TABLE OF CONTENTS
1 Executive summary 6
2 Introduction 7
3.2 Methodology 47
5 Findings 68
6 Suggestions 69
7 Conclusions 71
9 Annexure 73
10 References 73
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ITC LIMITED
1. EXECUTIVE SUMMARY
This report is about my internship program with ITC Ltd under the ware house and logistics management
division. In this comprehensive report, I have discussed about WD Infrastructure and Logistics division in ITC
ltd which I have observed and perceived during my internship. The logistic industry is said to be the blood of
any company without which it will be very difficult for any company to function. For Instance, the simple
example that can be given is that if the required good doesnt reach the customer on time, then the business
will be considered to be a flop business in this place logistics comes into picture. The warehouse is basically a
place where the goods are kept for storage. Warehouse provides a central location for receiving, storing and
distributing products. Warehousing can be classified into Outbound and Inbound logistics. Inbound logistics
function prepares the goods for storage whereas Outbound Logistics consolidate, pack and ship orders provide
economic and service benefits to both the business and customers on the whole.
During my internship program, by visiting each WD (Wholesale distribution) point and studying the
infrastructure of each WD point regarding the details of WD manpower, details about sales force automation
and vehicle Planning, parking place and allotment of Stocks, Placement of DND Goods, Number of Docks
Available, Number of Work Units involved in Unloading and loading of the vehicle. To Calculate turnaround
time (TAT) of the ITC vehicle which visits the certain WD points in the city from WSP and by taking some sample
WD centres across Hyderabad and secunderabad and suggest the better alternatives on how to reduce the
turnaround time (TAT) for WSP vehicle. The Methodology followed in acquiring the data from some WD points
is through Observational Method at the WD points and through Face to Face Interview with the couple of work
units and WD Area Executive. Expected learning outcome from this project is chance of interacting to the work
units and the practicality of how Warehouse works. I had worked with the various WD Area Executives. The
details about this team and the department will be mentioned in the report as well.
As the main purpose of the internship is to learn from the practical environment and also apply the theoretical
concepts in a real-world scenario in order to tackle the problems using the knowledge and skills acquired
during the course done in Alliance University, in this report the analysis of current situation of the company
and its standing in the industry for the particular division will be shown. This internship report will also cover
the aspects of Logistics and warehouse Department in general ITC ltd. and in the aspects of the company that
I had worked for.
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ITC LIMITED
2.INTRODUCTION
INTERNSHIP OBJECTIVES:
The reason I choose to join ITC Ltd and the Warehouse and Logistics Division is majorly to experience the
various Operations Concepts and to know the Working of Warehouse Management Techniques followed and
used by the company. I wanted a new challenge and to learn, improve, and develop new set of skills. During
my internship, two major competencies were central:
Study of WD Infrastructure: - studying the infrastructure of each WD point regarding the details of
WD manpower, details about sales force automation and vehicle Planning, parking place and allotment
of Stocks, Shipment Planning, Placement of DND Goods, Number of Docks Available, Number of Work
Units involved in Unloading and loading of the vehicle. Which are involved in Channel Design of Sales
and Distribution of ITC.
Reducing the Turnaround Time of ITS WSP vehicle: - by calculating the operating time for Unloading
the WSP vehicle at various WD points with the involvement of Work units. Proper Suggestions made
by following the Time study
The beneficiary part for the ITC with this project is, there are four Shifts for shipment logistics maintained at
the warehouse of ITC (WSP), Warehouse operates 24*7.
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ITC LIMITED
i. 2:00AM to 8:00AM
ii. 8:00AM to 2:00PM
iii. 2:00PM to 8:00PM
iv. 8:00PM to 2:00AM
Here by 2:00PM WSP vehicle should reach to Warehouse start the next shift of shipment, but at most the WD
points unloading of this vehicle is getting late due to that WSP vehicle is reaching to warehouse around 2:30PM
to 3:00Pm. In fact, there are some cases where it is reaching near to 4:00PM, due to this delay at one Stop of
shift it is effecting further shift shipments all the day long. So, by calculating the turnaround time and making
some suggestions in overcoming the delay helps in better operations at Warehouse and study of WD
infrastructure also plays a role in calculating Turnaround time
These are some of the important WD Points where WSP receives higher order from: -
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ITC LIMITED
GLOBAL SCENARIO
As the foods business division of ITC Ltd exports its goods to key geographies such as North America, Africa,
Middle east and Australia, talking about the global scenario for the ITC is a necessity in this report. In the global
scenario, there has been a less increase in the operating margin of some of the biggest firms in the
industry. Fast-moving consumer goods are the goods that are traded very frequently leading to high volume,
low price because of repeated purchases and are fastest to leave the supermarket or hypermarket shelves. It
is a market that is highly sensitive to changes in disposable income or in other words, very demand elastic.
They may be categorized as durable and non-durable when classified according to their shelf life such as
detergents, cosmetics, packaged foods, personal hygiene products, stationery, toiletries etc. Some of the
management executives of big FMCG brands expect the supplier price to soar in the coming time periods but
22% of them choose to remain on the risk averse side expecting no change to occur. The optimistic ones are
leaving no stones unturned and are striving to introduce new launches in the market to tap more of the niche
customers, spending more on capital goods to enhance manufacturing capabilities and henceforth drive the
forecast of continuous growth prospects in the FMCG industry.
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ITC LIMITED
GLOBALISATION AT A GLANCE
Contribution of more than US$ 2 billion to India's exports in the last decade.
ITC's International Business Division is one of the largest Indian exporters of
Agri-products and is a preferred supply chain partner to companies like Coca
Cola, Mitsubishi etc.
Markets its own brand of cigarettes in the US and Middle East
Largest exporter of coated boards from India
Largest exporter of cigarette tobaccos from India
INDIAN OPERATIONS AND MARKET SHARE OF ITC.
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14
billion and a turnover of over US $ 9.4 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected
Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks
among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by
the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest
foreign exchange earners (US $ 3.2 billion in the last decade).
The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. This transformational strategy, which has
already become the subject matter of a case study at Harvard Business School, is expected to progressively
create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.
ITC will set up a new tobacco processing department (TPD)because the increased production will make it
economical to process tobacco on site. The Company has launched a project e-Choupal in Bhopal to Web-
enable farmers to make a beginning in agricultural e-trade. ITC Ltd its entry into retailing business by launching
branded leisurewear apparels as part of its diversification strategy into new areas. The Company is hiving off
its Infotech services businesses in India, the US and UK and merging them into a separate wholly-owned
subsidiary. The IT division has entered into agreements with Compaq and expand the IT business.
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ITC LIMITED
The company set up the Lifestyle Retailing Business Division. A strategic Business Unit for the greeting cards
business was set up under the Packaging and Printing Division. - ITC has launched Wills Sport, a full range of
internationally styled premium wear for men and women. - ITC Infotech Ltd., the recently-launched it
subsidiary of ITC Ltd., has become one of the select software organisations in the world to achieve the
distinction of being certified atLevel-5on the prestigious Capability Maturity Model. Tobacco Company ITC
launched a website, billed as `one stop terminus' for international customers of agricultural
commodities. The website, ww.itcibd.com, will provide information on trading of key commodities. The
Company have set up units in the north-eastern States to avail of special incentives relating to Central excise
duties. As the foods business division of ITC Ltd exports its goods to key geographies such as North America,
Africa, Middle east and Australia, talking about the global scenario for the FMCG industry is a necessity in this
report. In the global scenario, there has been a less increase in the operating margin of some of the biggest
firms in the industry.
Fast-moving consumer goods are the goods that are traded very frequently leading to high volume, low price
because of repeated purchases and are fastest to leave the supermarket or hypermarket shelves. It is a market
that is highly sensitive to changes in disposable income or in other words, very demand elastic. They may be
categorized as durable and non-durable when classified according to their shelf life such as detergents,
cosmetics, packaged foods, personal hygiene products, stationery, toiletries etc. Packaging and branding is
imperative to the FMCG products as it is an important element for positioning the product correctly in the
minds of the buyer. It signifies the social and economic status of the buyer and gives him something to relate
to. The market for FMCG products can be safely assumed to be stable in countries where there are no severe
fluctuations in the per capita disposable incomes. These can be provided only for highly developed nations like
the UK and the US and these are expected to emerge as prominent targets for the same reasons.
The following are the trends that are followed in the FMCG industry:
3Gs budgeting may have peaked interest throughout the industry, but copycat cost cutting is not necessarily
an effective growth strategy. Instead of making cuts across all brands to reduce costs, analyse your portfolio
to see whether it is coherent. In other words, ask whether the products you offer align logically with the market
categories and niches your company is focusing on. By identifying the rationale behind your portfolio, you can
avoid reacting opportunistically to changing markets with hastily developed brand extensions, new products,
or acquisitions.
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ITC LIMITED
Small players those with annual sales of less than $1 billion are outperforming the competition in 18 of
the top 25 categories, including the largest and most consolidated, such as dairy, bakery, snacks, and ready
meals. Consumers choose these brands because they offer authenticity (The Body Shop), a connection to local
growers (Cabot Creamery), the promise of healthy ingredients (Bobs Red Mill and Annies Home grown), or a
quirky story (Ben & Jerrys). From 2009 to 2012 in packaged foods and from 2008 to 2011 in beverages, small
players grew revenue about three times as fast as the overall category. Specifically, in packaged foods, small
players gained 1.7 percent of market share, while large players saw their market share decline 0.7 percent.
A one-size-fits-all approach will no longer work in the global market. Brands that want to do well in emerging
economies in Asia, Latin America, and the Middle East, where demographic trends offer more potential for
growth than developed markets, must tailor their products to local demands. Take, for example, the challenges
of local distribution, especially in countries with large rural areas, such as India and Vietnam. Colgate sells its
oral care and household products to more than half of the worlds population (65 percent global penetration in
2013, according to Kantar World Panels Brand Footprint ranking) because it has built awareness and sales in
emerging nations with small pack sizes, which encourage trial and are more affordable. Heinz tackles
distribution challenges by acquiring and expanding existing local brands.
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ITC LIMITED
4. INDIAN SCENARIO:
2. Household and Personal care is the leading segment accounting, accounting for 50% of the overall
market. Hair care (23%) & Food & Beverages (19%) comes next in terms of market share
3. Growing awareness, easier access & changing lifestyles have been the key growth drivers for the sector
4. Retail market in India is estimated to reach USD1 trillion by 2020 from USD600 billion in 2015, with
modern trade expected to grow at 20 per cent per annum, which is likely to boost revenues of FMCG
companies
5. People are gracefully embracing Ayurveda products, which has resulted in growth of FMCG major,
Patanjali Ayurveda, with a m-cap of USD 14.94 billion. The company aims to expand globally in the next
5 to 10 years.
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ITC LIMITED
B. EXECUTIVE SUMMARY:
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ITC LIMITED
C. MARKET SEGMENTS:
As shown in the above flow chart, the Indian FMCG industry is broadly classified into three categories. Foods
and beverages is the category that we will be focusing upon majorly as the foods business division of ITC is
where the internship took place.
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ITC LIMITED
In the overall revenues recorded by FMCG sector in India. In the last few years, the FMCG market has grown
at a faster pace in rural India compared with urban India FMCG products account for 50 per cent of total rural
spending.
E. MAJOR PLAYERS:
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance
by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan
Unilever.
3. Nestl India
4. AMUL
5. Dabur India
6. Kelloggs
7. Haldirams
8. Britannia Industries
The FMCG sector in India generated revenues worth USD47.3 billion in 2015
Over 2007-16F, the sector is expected to post CAGR of 11.9 per cent in revenues
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ITC LIMITED
During 2015-16, seven leading FMCG companies in the country have fared better than their
multinational peers, in terms of revenue growth. The combined revenue of 7 leading Indian FMCG
companies during 2015-16 stood at USD 11,066.46 million .
In the long run, with the system becoming more transparent & easily compliable, demonetisation is
expected to benefit organised players in the FMCG industry
Competitive Rivalry:
Private label brands by retailers are priced at a discount to mainframe brands limits competition for the weak
brands. Highly fragmented industry as more MNCs are entering
Huge investments in setting up distribution network and promoting brands. Spending on advertisements is
aggressive.
Substitute Products:
Presence of multiple brands. Narrow product differentiation under many brands Price war.
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ITC LIMITED
Big FMCG companies are able to dictate the prices through local sourcing from a fragmented group of key
commodity suppliers.
Low switching cost induces the customers product shift. Influence of marketing strategies. Availability of same
or similar alternatives.
H. STRATEGIES ADOPTED:
FMCG companies are trying to influence consumers with intelligent deals. Firms like ITC offers combo deals to
the consumers. For example, in the case of soaps & cosmetics; 4 soap cases are offered at the price of 3, selling
the range of deodorants for men & women at a discounted price.
The internet enables consumers to make their own research on the kind of products or commodities they want
to purchase. 1 in 3 FMCG shoppers goes online 1st & then to the stores. Almost half of the automobile
consumers follow Research Online Purchase Offline (ROPO) method.
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ITC LIMITED
Product Innovation:
Indian consumers have become choosy & are less likely to stay loyal to a brand. Colgate-Palmolive has
launched a toothpaste for the inflammatory gum problem of pyorrhoea. ITC is coming up with new multigrain
Bingo. Dabur has launched its sugar free variant for Chyawanprash in India. As of March 2017, ITC, which
ventured in coffee & chocolates segment under the Fabelle and Sunbean brands is planning to launch another
premium range of items. By doing so, the company is planning to compete with brands like Nestle & Cadburys.
Customisation:
Product Flanking: Introduction of different combinations of products at different prices, to cover as many
market segments as possible. Different types of same product for different users population. For example:
Calcium Sandoz & Calcium Sandoz Women & Horlicks for older women, Junior Horlicks. Emami, with a
presence in over 60 countries across the world, has decided to rework on its overseas strategy by planning
manufacturing and acquisitions in overseas markets. The company plans to re-work on its product portfolio
by getting into new categories with higher buying preference and revamp its distribution networks.
Political Environment:
There have been a lot of initiatives from the government to ensure that there has been development of the
rural population. Schemes such as loan waivers, NREGA programmes etc. have been used to ensure that the
rural masses have been empowered and that there is more purchasing capacity with the citizens. The
government has also ensured that there have been a lot of FDI inflows in this industry. 100 % investment is
allowed in single brand retail and 51% in multi brand retail.
Social Environment:
As seen earlier in the growth trends in the FMCG industry, there has been a change in the lifestyles of the
population of India. There has also been an increase in the desire to experiment with brands and innovative
products. This has led to the companys increase investments in research and development
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ITC LIMITED
Economic Environment
The above graph clearly shows that there has been an increase in the nominal per capita income for Indians.
The graph also shows that the increase will continue to happen in the next three years as well.
Technological Environment:
There has been a rapid increase in the technology available for manufacturing the products and packaging the
products. In some ways,, the latest technology in manufacturing has ensured that the cost of production and
time taken to produce is reduced, but the improvement in packaging( Tetra Pack) has made sure that there is
a slight increase in the cost of production.
Legal Environment:
Goods and Service Tax(GST) which will be implemented from the 1st June is something which the entire FMCG
industry is eagerly waiting for. The tax on the goods will be 20%. MCG sector wants an early rollout of the
GoodsandServices tax (GST) so as to reduce supply chain constraints, improve competitiveness of FMCG
companies against unorganised players. There has also been a relaxation on the licensing rules. This has enable
betterment for all the players in the FMCG industry.
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ITC LIMITED
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ITC LIMITED
INDUSTRY REPORT
The scope and influence of logistics has evolved in the late 1940s. In the 1950s, and 60s, military was the
only organization which used logistics. The scope of logistics has been extended beyond the army, as it has
been recognized as one of the important tools for developing competitiveness. Competitive advantage
means the company has the ability to differentiate itself, in the customers eyes, and also is operating at a
lower cost and greater profit. Logistics facilitates in getting products and services as and when they are
needed and desired to the customer. It also helps in economic transactions, serving as a major enabler of
growth of trade and commerce in an economy. Logistics has come to be recognized as a distinct function
with the rise of mass production systems. Production and distribution were earlier viewed as a sequential
chain of extremely specialized activities. The role of logistics is to ensure availability of all the required
materials before every step in this chain. Obviously inventory of raw materials, semi-finished and finished
goods is a must across this chain to ensure its smooth functioning.
The concept of logistics has its base upon the systems approach. There is a single chain, with flow of
materials starting from the supplier, then to the plant and finally to the end customer, and also these
activities are done sequentially in order to achieve customer satisfaction at low cost. For this to be successful
there has to be co-ordination in the activities of the department. With reference to an organization, an
organization gets a concrete shape due to its structure.
DEFINITIONS OF LOGISTICS:
The American Council of Logistics Management defines logistics as the process of planning, implementing
and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished
goods and related information from point of origin to point of consumption for the purpose of conforming to
customers requirements. Philip Kotler defines logistics as planning, implementing, and controlling the
physical flows of materials and finished goods from point of origin to point of use to meet the customers need
at a profit.
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ITC LIMITED
LOGISTICS IN INDIA:
Currently the annual logistics cost of the world is estimated about USD 3.5 trillion. India spends around
14.4% of its GDP on logistics and transportation as compared to less than 8% by the other developing
countries. Indian freight transport market is expected to grow at a CAGR of 13.35% by 2020 driven by the
growth in the manufacturing, retail, FMCG and e-commerce sectors. Freight transport market in India is
expected to be worth US$ 307.70 billion by 2020. In India Road Freight constitutes around 63% of the total
freight movement consisting of 2.2 million heavy duty trucks and 0.6 million light duty trucks annually. The
road freight movement is expected to increase at a CAGR of 15%. The Sea Freight consists of around 9% of
the total freight market and is mainly used as a major mode for imports and exports. The air freight consists
of around 1% of the total freight market in India which will grow around 12.5% CAGR over the next 5years.
Companies in India currently outsource an estimated 52% of logistics and 3PL represents only 1% of logistics
cost. As of now, the 3PL activity is limited to only few industries like automotive, IT hardware, telecom and
infrastructure equipment. According to the survey conducted by the Transport intelligence in 2013 ranks
India as the second most attractive logistics market in the future after china. In India, about 110 new logistics
parks are expected to be operational with an estimated cost of USD 1 Bn. Hence, India offers huge
opportunities in development of logistics services including warehousing, cold storage, shipping, ports and
multi modal transportation, etc.
The Domestic Cargo Transport Industry in India comprises of several modes including Roadways, Railways,
Inland Waterways, Coastal Shipping and Airways. Since the industry is gradually dealing with and surpassing
its shortcomings, it is bound to come closer to the realization of its potential in the future. The same in turn
will not only augment the competitiveness of the country, but will also create more opportunities for domestic
businesses and foreign enterprises operating in India. Freight transport market in India is expected to be worth
US$ 307.70 billion by 2020. In India Road Freight constitutes around 63% of the total freight movement
consisting of 2.2 million heavy duty trucks and 0.6 million light duty trucks annually. The road freight
movement is expected to increase at a CAGR of 15%. The Sea Freight consists of around 9% of the total freight
market and is mainly used as a major mode for imports and exports. The air freight consists of around 1% of
the total freight market in India which will grow around 12.5% CAGR over the next 5 years with the lower
turnaround time needed for delivery such as 24-hour delivery needed by the E-commerce sector. In developing
countries like India, an efficient logistics infrastructure can reduce the cost of transportation which in turn can
contribute directly to economic development.
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ITC LIMITED
In India road has become predominant mode of transportation of freight cargo. Estimate of the modal
movement of cargo highlights that in India nearly 60.2% of the cargo is moved by road, 32.1% by rail, and
rest by the coastal shipping, airways and inland waterways. Pipelines constitute a very minor proportion. It
is recognized that movement of long haul bulk traffic by road is less efficient than by rail. But road is still
preferred over rail because:
There has been little improvement in the track infrastructure since independence. While route kilometre
has grown only at a CAGR of 3%, incorporating additional lines on existing routes has not fared much better
growing at a low CAGR of 6.6%. During the same period freight and passenger traffic has grown at a CAGR
of nearly 55%. This had led to most high-density corridors becoming oversaturated.
Indian railways follow a policy of subsidizing passenger tariff by freight tariff. This has resulted in sharply
rising trend in railway freight rate over the years compare to little increase in passenger tariff rate. The result
of this has been that Indian rail freight rates have already become one of the highest in the world.
Freight traffic is frequently subordinated to passenger traffic on the railway network. This results in a freight
train taking as much as 6-8 days for a journey of 2000kms. Also, there is no guarantee on the transit time
for freight trains.
RAILWAY CARRIAGE NOT EASY FOR INDUSTRY WHICH CANNOT PROVIDE FULL TRAIN
LOADS-
Railways have a preference for customers who can provide full train load as unlike in some other countries,
railways in India no longer run mixed trains which can carry different types of cargo due to operational
inefficiencies.
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ITC LIMITED
WHILE ROAD MOVEMENT IS PREFERRED TO RAIL, ROAD MOVEMENT HAS ITS OWN SET OF
CHALLENGES.
Freight movement in India is dependent on national highways. While NH constitutes only about 2% of the
road network of India, they carry 40% of total traffic. As a result, most of these highways are severely
congested resulting in freight travelling only a third of the distance compared to developed countries.
The road quality in India, on the NHs as well as the roads is improving but is still poor in many locations.
Estimates suggest that motor able roads are still less than 10% of the total road network.
The trucking industry in India is largely fragmented and in the hand of small truck operators. Estimates
suggest that nearly 70% of the truck owners in India own between 1-5 trucks. Due to this there is fierce
competition amongst operators leading to truck owners resorting to overloading to recover investments.
MULTIPLE CHECKPOINTS-
Trucks in India have to pass through multiple check points in their journey. Trucks have to stop at state
borders, for payment of toll taxes, for RTO inspections etc.
A MODEST BEGINNING
The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the
Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot
of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of RS. 310,000. This
decision of the Company was historic in more ways than one. It was to mark the beginning of a long and
eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on
that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks.
FMCG
HOTELS
IT
ITC
PAPER
PACKAGING
BOARDS
AGRI
BUSINESS
pg. 26
COMPANY HISTORY
2010: CIGARS
COMPANY DETAILS
VISION:
Sustain ITC's position as one of India's most valuable corporations through world class performance,
creating growing value for the Indian economy and the Company's stakeholders.
MISSION:
To enhance the wealth generating capability of the enterprise in a globalising environment, delivering
superior and sustainable stakeholder value.
CORPORATE STRATEGIES:
ITC is a board-managed professional company, committed to creating enduring value for the nation and the
shareholder. It has a rich organisational culture rooted in its core values of respect for people and belief in
empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies
and systems.
a) Create multiple drivers of growth by developing a portfolio of world class businesses that best matches
organisational capability with opportunities in domestic and export markets.
b) Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business
and Information Technology.
c) Benchmark the health of each business comprehensively across the criteria of Market Standing,
Profitability and Internal Vitality.
d) Ensure that each of its businesses is world class and internationally competitive.
e) Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills
and capabilities residing in ITCs various businesses.
f) Create distributed leadership within the organisation by nurturing talented and focused top management
teams for each of the businesses.
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COMPANY ORGANIZATION CHART
Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership
within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries
the responsibility for strategic supervision of the Company. The strategic management of the Company rests
with the Corporate Management Committee comprising the whole-time Directors and members drawn from
senior management. The executive management of each business division is vested with the Divisional
Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally
focused on the management of its assigned business. This three-tiered interlinked leadership process creates
a wholesome balance between the need for focus and executive freedom, and the need for supervision and
control.
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ITC LIMITED
ITC LEADERSHIP
GOVERNANCE STRUCTURE:
Flowing from the philosophy and core principles of governance, Corporate Governance in ITC shall take place
at three interlinked levels, namely -
Strategic management by the Corporate Management Committee headed by the Chief Executive
Officer of the Company (CEO).
Executive management by the Divisional / SBU / Vertical / Shared Services Chief Executive / Chief
Operating Officer - Business Vertical assisted by the Divisional / SBU / Vertical / Shared Services
Management Committee.
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ITC LIMITED
It is ITC's belief that the right balance between freedom of management and accountability to shareholders
can be achieved by segregating strategic supervision from strategic and executive management. The Board of
Directors (Board) as trustees of the shareholders will exercise strategic supervision through strategic direction
and control, and seek accountability for effective strategic management from the Corporate Management
Committee (CMC). The CMC will have the freedom, within Board approved direction and framework, to focus
its attention and energies on the strategic management of the Company. The Divisional / SBU / Vertical /
Shared Services Chief Executive / COO - Business Vertical assisted by the Divisional / SBU / Vertical/ Shared
Services Management / Executive Committee, will have the freedom to focus on the executive management
of the business/ shared services.
Strategic supervision (on behalf of the shareholders), being free from involvement in the task
of strategic management of the Company, can be conducted by the Board with objectivity,
thereby sharpening accountability of management.
Executive management of the divisional business and shared services free from collective
strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency
and effectiveness of its business / shared services.
pg. 31
ITC LIMITED
QUALITY ASSURANCE:
Pursuing the Company's relentless commitment to quality, each business is mandated to continuously
innovate on processes and systems to deliver superior competitive capabilities. All manufacturing units of
the Company have ISO quality certification. All manufacturing units of the Branded Packaged Foods
businesses (including contract manufacturing units) and hotels have stringent food safety and quality
systems. All Company owned units / hotels and almost all contract manufacturing units of the Branded
Packaged Foods businesses are certified by an accredited 'third party' in accordance with 'Hazard Analysis
Critical Control Points' (HACCP) methodology. Additionally, the quality of all FMCG products of your
Company is regularly monitored through 'Product Quality Ratings Systems' (PQRS).
a. ITC is one of the foremost company in private sector in terms of sustained value creation, operating
profits & cash profits.
b. It is the only India-based FMCG company to feature in Forbes 2000 List.
c. ITC is a market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging &
Agri Exports.
d. The company is rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care & Stationery.
e. Its Agri-Business is one of India's largest exporters of agricultural products.
f. ITCs total sales increased at a CAGR of 4.29 per cent between FY11 & FY16 to reach net sales of
USD5,572.1 million.
pg. 32
ITC LIMITED
Above is the profit and loss statement of ITC Ltd as of 31st March 2017 as below.
pg. 33
ITC LIMITED
FMCG:
AASHIRVAAD:
Aashirvaad Ready Meals a range of ten of the most popular Indian dishes in a ready to eat format. A unique
food processing technology and a 4-layer international pouch, combine to provide a wholesome dish, carefully
preserved. This unique technology ensures freshness and taste is maintained without the use of preservatives
- 100% natural! Just heat and eat.
pg. 34
The range comprises of the following dishes:
Aloo Mutter
Pav Bhaji
Mutter Paneer
Navratan Korma
Palak Paneer
Dal Makhani
PindiChana
1. Rajma Masala
3. Pongal
Convenience and authentic taste now has a new name with the Aashirvaad Instant Mix range. This range,
launched in March '06, now includes Gulab Jamun, Rava Idli, Rice Idli and Rice Dosa. Aashirvaad Instant Mixes
promise the discerning Indian homemaker perfect tasting dishes, consistently. The Rava idli Mix is available in
500g pack and rest of the products are available in 200g packs.
pg. 35
ITC LIMITED
AASHIRVAAD SPICES:
ITC forayed into the branded spices market with the launch of Aashirvaad Spices in May 2005. The offering
currently consists of Chilli, Turmeric and Coriander powder in SKUs of 50g, 100g, 200g and 500g each.
o Sunfeast Farmlite
o Sunfeast Snacky
pg. 36
ITC LIMITED
BINGO:
1. Bingo! Yumitos
5. Bingo! Tangles
KITCHENS OF INDIA:
1. Vegetarian Curries
2. Non-Vegetarian Curries
3. Biryanis
4. Halwas
5. Kitchens of India Masala Mixes
1. Yippee! Noodles
2. Tricolor Pastas
3. Sunfeast Pastas
B NATURAL:
pg. 37
ITC LIMITED
CIGARETTES:
1. Insignia,
2. India Kings
3. Classic
4. Gold Flake
5. Navy Cut
6. Scissors
7. Berkeley
8. Bristol
9. Flake
1. Wills Lifestyle
2. John Players
PERSONALCARE PRODUCTS:
1. Essenza DI Wills
2. Vivel
3. Fiama
4. Engage
5. Superia
6. Vivel Cell Renew
7. Savlon
8. Shower to Shower
pg. 38
ITC LIMITED
1. Classmate
2. Paperkraft
3. Mangaldeep Agarbattis
4. AIM Safety Matchsticks
ITC HOTELS:
AGRI BUSINESS:
pg. 39
ITC LIMITED
INFORMATION TECHNOLOGY:
In today's age of digital disruption, ITC Infotech has adopted a '5D' framework of excellence to serve its clients
better:
1. DOMAIN Led: ITC Infotech's solutions & services are powered by deep Domain understanding and
practitioner's expertise in focus industries
2. DATA: Data Infra to Interventions, ITC Infotech enables clients to leverage the power of Data with
actionable insights and prescriptive analytics
3. DIGITAL ready: ITC Infotech provides Digital solutions to help clients transform their business and
enhance customer engagements
4. DESIGN expert: ITC Infotech provides UI/UX, high-end engineering design solutions and services to
market-leading engineering organizations worldwide
5. DIFFERENTIATED DELIVERY: With excellence forming the corner stone of each engagement, ITC
Infotech is committed to customized Delivery: Outcome-based, BOT, JVs, As-a-service and Subscription
models.
PACKAGING:
pg. 40
ITC LIMITED
Innovation has always been integral to ITC's DNA, the foundation for the unique and differentiated value
propositions that it has crafted over the years. Since I983, ITC R&D Centre in Bengaluru has played a crucial
role in building this capability, creating products and solutions that sustain the Company's competitive
advantage. Now rebranded as ITC Life Sciences and Technology Centre, this new beginning highlights its
integral part in keeping the Company future-ready and driving its game-changing businesses of the future. It
also reflects the Centre's new mandate- to go beyond supporting and improving ITC's existing products and
services and create innovations that not only meet but anticipate consumer needs.
ITC's ambitious agenda of sharpening its competitive edge in an enormously challenging marketplace demands
better products that can positively impact consumers' lives, demands solutions that effectively deliver care
and wellness to consumers, demands products and services that are world-class and a byword for excellence.
It is here that the Centre will step in - endeavouring to develop path-breaking solutions that blend science,
research and technology to enhance not just product experience but overall quality of life.
The challenging task of driving science-led product innovation has been carefully addressed by appropriately
identifying the required set of core competency areas of science such as Plant Breeding and Genetics,
Agronomy, Microbiology, Cell Biology, Genomics, Proteomics and several disciplines of Chemistry. Presently,
the ITC Life Sciences and Technology team has evolved with over 250 world-class scientists and is creating
Centres of Excellence in these areas. The Centre is carrying out research and securing proprietary technologies
for the Company's businesses.
pg. 41
ITC LIMITED
Manufacturing Unit
Company Sourced
Third Party trucks
WSP -
WareHouse
Service Provider
Company Sourced
Third Party trucks
Distributor
Sourced Third
Party Trucks
Distributors
Wholesalers
Retailers
Distributors
Consumers Consumers
pg. 42
ITC LIMITED
MANUFACTURING FIRMS
The module in the distribution network of ITC cigarettes are the manufacturing units located at Bengaluru,
Muner, Kolkata, and Saharanpur. These manufacturing units use the raw materials and other available
resources to manufacture the various brands of cigarettes.
The second level of distribution channel are the zonal offices. Each of the zonal office is situated in different
regions like North, South, West, East, North-west region etc. that are like the branch of organization opened
for the smooth functioning of the supply chain management of the product in the market. Main task
performed by these offices are acting as an intermediate between the manufacturing firm and local
distributors who are involved in actual distribution of products to the different selling points in the market.
They invigilate the storage point for the company, i.e. warehouse where large amount of stock is stored
depending upon the sales in that particular region.
WHOLESALE DISTRIBUTORS
The next level of the channel constitutes of distributors. It mainly refers to the agency holders of the company
who act as the company representative in the market and supplies the product to the different selling points
in the market. They are the most important module in the distribution channel of Cigarettes as on the one
hand they are representing company in the market and on the other hand they are involved in promotional
activities of the product (due to restriction on advertising and promotion of the Cigarettes using media types).
The distributors are available in almost each city and other important areas of the market to increase the
availability of the brand in the market and compete against the competitors.
WHOLESALERS
The next level of the channel in the distribution is the wholesalers. They help in bulk breaking from the local
distributors and also supplies to the retailers in the in and around its periphery. They also help in promoting
the company and other promotional activities through various visual merchandising.
pg. 43
ITC LIMITED
RETAILERS The last intermediate that is available before the Cigarette reaches to the customer are the retail
outlets. With reference to the Indian perspective, different retail outlets are present in different forms in the
market like:
a) Pubs/ Bars:
These are not basically the retail outlets of Cigarette but are included under this category because few of
the super-premium brands are available in each Pub for the facility of the customers coming to that
particular place. Also, these places act as point of promotion and launch of new brands.
Small and big shops present in every locality providing the basic & necessary products to the nearby people
or the locality in which it is located.
c) Pan shops:
Small corner shops that are known with the name of Pan Shops but contributes large share in total sales
of Cigarettes in the market.
d) Kiosks:
Small outlets in big Malls like Forum, which only sells Cigarettes of different brands of the same company
like ITC. Kiosks are being used by the companies to increase the visibility of the brands.
It refers to the big retail outlets that are available in the local markets selling the daily need goods and
other middle range of products that are required by the customers for the fulfilment of basic needs like
vegetables, grocery, kitchen appliances etc. Ex. Spencers, C3 etc.
The outlets opened in the Malls and other shopping areas, which are similar to the Kiosks but the only
with a difference that products from different companies are also available at one place with addition to
different brands.
pg. 44
ITC LIMITED
SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities and threats.
SWOT is a basic, analytical framework that assesses what an entity can and cannot do, for factors both internal
as well as external. Using environmental data to evaluate the position of a company, a SWOT analysis
determines what assists the firm in accomplishing its objectives, and what obstacles must be overcome or
minimized to achieve desired results: where the organization is today, and where it may be positioned in the
future
STRENGTH WEAKNESS
ITC has a strong and Experienced Management Unrelated Diversification
Strong Brand Presence Heavily Dependent on Tobacco Revenue
Excellent Research & Development Facilities Hotel Industry has not able to create a Huge
Portfolio of Business Market Share
Sustainability & CSR Programmes Heavy Taxation Policy
Deep Reach of it's Distribution Channel
SWOT
OPPORTUNITIES THREATS
More publicity of Hotel chains to increase
Strict Government Regulations and Policies
Market Share
Regarding Cigarettes
Social Media Marketing as a replacement for
Intensifing Competition in FMCG Business
Advertisement
FDI in retail, which allows Internationals
Ever- Growing Consumer Base due to
Brands
Addiction
Stiff Competition from Both Domestic &
Increasing Purchasing Power of people there
International players
by increasing Demand
pg. 45
3. PROJECT PROFILE
I am expected to study the infrastructure of various WD centres across the city and suggestions on how to
reduce turnaround time (TAT) of ITC vehicle from warehouse to WD centres. There is no specific time limit
given by the industry. For this I need to collect the data from some WD points across the Hyderabad and
Secunderabad City.
By knowing the objectives of the project, working model of WD and by helping in overcoming the challenges
facing by WD Executives on round which helps WSP for more better Operations and also can overcome the
delay of WSP vehicle while returning from WD Point
pg. 46
3.2 METHODOLOGY
One of the goals of science is description Descriptive research methods are pretty much as they sound
they describe situations. They do not make accurate predictions, and they do not determine cause and effect.
There are three main types of descriptive methods: observational methods, case-study methods and survey
methods.
FOR THIS PROJECT, OBSERVATIONAL METHOD AND DIRECT INTERVIEW IS USED AS ONE
OF THE DESCRIPTIVE METHODS IN COLLECTING THE DATA.
OBSERVATIONAL METHOD
With the observational method (sometimes referred to as field observation) animal and human
behaviour is closely observed. There are two main categories of the observational method naturalistic
observation and laboratory observation. The biggest advantage of the naturalistic method of research is that
researchers view participants in their natural environments. This leads to greater ecological validity than
laboratory observation, proponents say.
Ecological validity refers to the extent to which research can be used in real-life situations. Proponents
of laboratory observation often suggest that due to more control in the laboratory, the results found when
using laboratory observation are more meaningful than those obtained with naturalistic
observation. Laboratory observations are usually less time-consuming and cheaper than naturalistic
observations. Of course, both naturalistic and laboratory observation are important in regard to the
advancement of scientific knowledge.
DATA COLLECTION
It refers to the collection of natural phenomena, descriptors, including the result of past experience,
observation and experiment. The project consists of numbers, words, images which have been employed to
come to certain inferences.
pg. 47
ITC LIMITED
SOURCES OF INFORMATION: -
Primary Data: Data has been collected directly from the respondents. Data is drawn directly by observing
the working conditions at WD points and taking down the original time for calculating Turnaround Time.
For this, I have collected the sample of 10 WD points and their respective 10 WSP vehicles and noted the
observations and calculated for assumptions and drawn the specific suggestion.
Secondary Data: Data collected for some other investigation not for the current project was also employed
to conduct research. Books, websites were used to take information. The authenticity of the source was
verified before employing secondary data.
FOR THIS PROJECT, I NEED TO ANALYSE THE DATA WHICH IS PRIMARY I.E. WHICH
IS COLLECTED FROM THE WD POINTS
Data is analysed by calculating some illustrations with the help of data collected which conspires of number if
work units involved, time at which the WSP vehicle entered into WD point time taken to unload the vehicle,
time takes for the clearance from, time taken to check the direct order, and finally noting down the time by
which the vehicle is going out. By calculating and analysing the data, turnaround time Is calculated and
suggestions can be made. Whereas in the study of WD infrastructure there are no illustrations just on the
format of observational method, suggesting the best stock keeping place to WD points, which in return also
helps in reducing the Turnaround time of WSP vehicle as unloading time can be reduced.
INTERPRETATION OF DATA: Statistical and Mathematical tools have been used to analyse and interpret
data. Pie charts and bar diagrams have been used to simplify, tabulate and display primary data.
CONCLUSIONS: Inferences have been drawn from both primary and secondary data. Intensive study and
research have revealed and uncovered many truths as well as myths of marketing water.
There is no particular time frame as such, for me only dead line is which the university is has given i.e. last date
of internship project i.e. 13th Aug, 2017 as I have received 10 samples from the organization I need to work on
them and analyse and submit the report on before the dead line of internship program, theres no such dead
lines or time frames given by organization.
pg. 48
4. OBSERVATION AND ANALYSIS
START TIME: 11:38AM ORDER TYPE: MIXED ORDER OPERATION: Out bounding
OBSERVATIONS
pg. 49
Gradually From 6 Work units are reduced to 3 which leads to increase in operating time of unloading
the vehicles.
WORKING
On whole 274 CFCs arrived for today 3 Work Units Work Technique used is Assembly Line On an
average one worker carrying 2 CFCs (274/2 = 137)
Time taken is one minute to lift the load and to place
When there are 3 workers are involved (137 / 3 = 45.6 mins) Assemble Line Process
So, on mathematical operation whole unloading time is 45mins
SUGGESTIONS
As ITC vehicle is arriving by 6:00am, if the unloading starts by 9:00am immediately then the time by
which ITC vehicle reaches to warehouse will be maximum to around -11:30am, by considering the
Objective Constraints like number of workers and number of CFCs received as variables.
So, preferable option would be vehicle reaching retailers should be loaded at night
By involving more number of working units- either in assemble line working technique or by Mass
Working Technique
BEFORE SUGGESTIONS: Total TURNAROUND TIME from ITC warehouse to ITC warehouse after unloading
(as per today data) 5:00am started from ITC 1:30pm APPRX. reached back to ITC warehouse = 8 and half
hours
AFTER SUGGESTIONS: Total TURNAROUND TIME from ITC warehouse to ITC warehouse after unloading
(as per today data) would be 5:00am started from ITC 11:30am APPRX. = 6 and half hours.
pg. 50
2. WD -2 = ADVANCED TECHNOLOGY SERVICES
START TIME: 9:47AM ORDER TYPE: MIXED ORDER OPERATION: Out bounding
OBSERVATIONS: -
pg. 51
Extra time is taken in between lifting the stock and placing the stock, because whole operations is
taking by only one executive and he got to deal with other order details with the Retail drivers on
parallel. So, work units who are unloading has to come to executive while carrying and inform what
they are carrying for every trip to check on the Direct order.
There are two docks available on parallel they can carry out loading and unloading but there are only
two work units available to take up the complete operations i.e. loading and Unloading. So, parallel
operations may not be possible.
WD Executives are expecting some work units from WSP to Unload the Vehicle. Stocks are placing
closely. and only one way is available for exit from WD i.e. from office and stock area route is same.
pg. 52
3. WD-3 = TKM AGENCY (HY3882)
GR1 - 5 ON ROLE
(INCLUDING
SNACKS)
GR1B 5 ON ROLE
GR1C 4 ON ROLE
GR2 5 ON ROLE
AT 2 13,000 DIRECT
pg. 53
OTHERS Supply DIRECT
manager -1
pg. 54
In the ITC terminology Logistics Shipment is carried out by four types
K1 Shipment from Manufacturing Unit to WD (Wholesale Dealers) Generally, Only Atta is shipped in K1
VEHICLE PLANNING
Vehicle planning is taking out by supply chain manager (Depends on the situation)
Beat wise
Route wise
Channel and beat combination
REMARKS: -
TOTAL RETAIL VEHICLES 11, all are own vehicles of WD owner. Total outlets managed by WD - 1200
Outlets
OSMANGUNJ -
- First floor Chili.
- ATTA ground floor
ABIDS -
- Ground floor complete cigarette
- First floor office
pg. 55
GOLNAKA
- Categories kept in block -1 - Ground Floor-Noodle, Biscuits
- Categories kept in block -2 First floor personal care products, Agarbattis
- Second floor Bingo and Office
WD REQUIREMENTS They are Expecting some work units from WSP for Unloading the ITC vehicle.
pg. 56
CHANNEL WISE VEHICLE REQUIREMENT PERFORMANCE COST
TRUCK TYPE GR1A GR1B GR1C GR2 Outlets Delivery Avg. Fixed Varia
2V covered boys per distance cost per ble
4V 4V 1V
per trip vehicle per trip month cost
/km
APPRX.
2- Ashok-407 * 30 2 20-
30KMS
3-Ashok-207 * 30 2 20-
30KMS
4-Ashok-dost * 30 2 20-
30KMS
5-Ashok-dost * 30 2 20-
30KMS
pg. 57
9-Tata Ace * 30 2 20-
30KMS
10-Auto * 30 2 20-
30KMS
11-Auto * 30 2 20-
30KMS
- NO NIGHT operations.
Loose stock in empty cfc at separate area DND stored at top floor DND also separated by Blocks.
pg. 58
5. What are the present challenges according to WDs, w.r.t. WH Management, Delivery Management?
Main Challenge is they are Expecting the workers from WSP for unloading WSP vehicle
8. What time WDs go-down opens in the morning and what is the working shift Time?
Opens at - 9:30AM
9. What time K4 vehicle leaves from WD Go-down and What is the Avg. allowed time for Delivery
pg. 59
OBSERVATIONS TKM AGENCY
Because the vehicle which is sent to any WD in the morning shift, it has to be returned to the WSP point by
1:30pm to 2:00pm because another shift of loading operation starts by 2:00pm. But, in here WSP vehicle is
reaching to WSP point by 3:00pm to 3:30pm which resulting in the late of shipment timings at WSP.
pg. 60
4. WD-4 = SHREE KHIWAJ TRADERS (HY4332)
Depot manager NO - -
GR1 -& 3 6
(INCLUDING
SNACKS)
GR1B 2
Tobacco 11
CG 1-separate
AT
SX+BI
pg. 61
OTHERS
Office staff
OBSERVATIONS
pg. 62
Complete Routes Covered under this WD 6 routes.
- 2 docks available
- proper parking place
- railings comfortable for work units to pick and step
Night they will segregate the stock according to the route and vehicle
Maximum for one work unit taking in between picking up the stock and placing in the vehicle and coming
back to pick up the stock is approx. 37secs
pg. 63
CHANNEL WISE VEHICLE REQUIREMENT PERFORMANCE COST
TRUCK GR1A GRA3 GR1C GR2 Outlets Delivery Avg. F.C per V.C Per
TYPE 2 covered boys per distance month month
per trip vehicle per trip (Diesel)
APPRX.
pg. 64
QUESTIONNAIRE- SHREE KHIWAJ TRADERS (HY4332)
1. Is the night Operations Possible at WD Go down?
NO Night Operations (except before closing time, Retail vehicle orders are segregated Accordingly which in
morning can directly load in to the vehicles.)
Loose stock in empty cfc at separate area DND stored at ground floor in a separated room DND also
separated by Blocks.
Generally, Route Wise. In any mixed order with less amount of order then they will go with channel wise.
5. What are the present challenges according to WDs, w.r.t. WH Management, Delivery
Management?
pg. 65
7. How many OLs bill are getting loaded in a Truck?
On an average 20 -25 OLs bill are loaded in a truck. But, minimum 15 will be maintained
8. What time WDs go-down opens in the morning and what is the working shift Time?
- HMT HILLS
- Bollaram
- 5th Phase
- Miyapur
- Pragathi Nagar
- Nizampet
For General routes 50KMS, Long Routes 60 KMS, Double trip for long routes 120 KMS
9:00AM to 5:30PM delivery window time, it may exceed depending upon the order quantity and if any extra
trips needed.
11. What time K4 vehicle leaves from WD Go-down and What is the Avg. allowed time for Delivery
pg. 66
OBSERVATIONS- SHREE KHIWAJ TRADERS (HY4332)
pg. 67
5. FINDINGS
To every WD, ITC vehicle will be reaching there by 6:00AM from WSP. WD opens at 9:00AM
Immediate operation taken place at WD is Loading the Retail Vehicles which almost takes around 2 to
3 Hours to take the complete operation, by then it would be around 11:30AM to 12:00PM
Now, Unloading of ITC vehicle takes place which almost takes around 1 to 2 Hours depending upon the
order they received, by then it would be around 1:30PM to 2:00PM. Here, the real problem is at WSP
by 2:00PM New shift of operations will be started i.e. Loading will be started, due to the delay at WD,
Vehicle is coming to WSP at around 2:30PM to 3:30Pm depending on the distance from the WSP
Here, theres one more clause is there, WSP Vehicle being it a heavy sectored vehicle it has to cut-off
from the city limits before 4:00Pm else it will be registered under traffic violations.
Minimum number of work Units are available for Loading and Unloading operations.
At some WD Points, only one Operations Executive is there to take care of both Loading and Unloading
operations and even for the paper check i.e. DO Direct order
pg. 68
6. SUGGESTIONS
1. To every WD point, WSP vehicle is reaching there on or before by 6:00AM, Almost all WD Points Opens
at 9:00AM. But unloading starts at around 11:30AM due to the loading process of retail vehicles will
be taking care of in the morning, On an Average Unloading Operation time will be maximum to 2 to
3Hours. Due to this ITC vehicle is returning back to WSP by around 3:00PM, to overcome this, Retail
vehicles should be managed to load at the night of before day and soon after the WD opens, they can
start to the Market. With this process, they can save around 2 Hours, WSP vehicle can be managed to
return to WSP by 1:00PM Maximum.
2. Increase in the Work units at the WD points. On an average Maximum number of Work units available
at each WD points are 3,4 which even include for both loading of retail vehicles and Unloading of retail
vehicles.
3. Some WD Executives are expecting some workers from WSP for unloading operations, as there are
only limited number of work units for both loading and unloading of operations. So, some workers
should be allotted by the WSP with the vehicle for the unloading purpose
4. WD should make sure that all work Units were trained to complete the job in time without and delay.
5. Major Problem would be Parking area, Stockings, because at some the WD points some stocks are
stored at one go-down and some stocks at placed at other go-down. Like, ATTA and Chili at one go-
down, cigarette at separate go-down. When there is a Mixed Order then it will a complete problem for
the Vehicle and for the parking as well. So, Precisely Location Planning of WD should be taken Care of.
6. WD Physical Infrastructure should be taken care of with minimum requirements i.e. for each WD with
At least two dock areas would be helpful for the both loading and unloading operations. So, that they
can be carried out on parallel.
pg. 69
7. Additionally, two operation executives taking care of, one for loading of retail vehicles and one for
unloading of WSP vehicle at two separate docks. In case there are two or more WSP vehicles to be
visited to WD on a day, then the WD operations wont be disturbed and equally Turnaround time for
WSP vehicle will also be controlled and reduced.
8. To eradicate all these findings on single shot suggestion would be, till now WDs are maintained by
third parties. If ITC take up the WD on their own distribution channel, then they can overcome the
challenges and make it more flexible accordingly.
9. Its better to install GPS devices to WSP vehicles and GPS location identity for the WD point, which helps
in getting the fastest and alternative routes to the destination during traffic jams, road constructions
E.T.C.
pg. 70
7. CONCLUSIONS
In a nutshell, this internship has been an excellent and rewarding experience. Working with various warehouse
and logistics executives and WD Executives of ITC and in fact, helped in knowing how the Channel design of
such big FMCG company works. The program went well, there are only few challenges encountered from the
start of the program to its end. The quality of information and reliability can be high because being it a primary
data collected by observational method and face to face interview with some WD executives. While proper
definition of problem tells the survey to whom to contact, proper design tells him how to collect required
information. Selection of methodology for a particular project is made easy by sorting out a number of
alternative approaches, each of them having its own advantage and disadvantages. Efficient design is that
which ensure that the relevant data are collected accurately.
The Modern warehouse, productivity index is defined as the number of pallets and cases picked per hour. The
cycle time of the operation also contribute to the productivity of the warehouse. Through this scientific
approach, the deliverables would be to eliminate waiting time, wastages and convert them into productive
hours so to create additional capacity within the same set of resources. But, here at most of the WD points
there are no pallets and cases picked is followed so which resulted in lack of productivity in picking and storing
the stocks.
WD manpower is sufficient with the capacity of WD. But theres a room for improvement at the increase of
manpower under loading and unloading operations. Parking facility at some WD points yet to be improved
and for some WD points there is proper route for entering for the heavy vehicles. As the productivity will
increase more by increase in involvement of more number of work units in loading and unloading operations.
The productivity of the WD can be increased if the loading operation for WD vehicles are taken care at the
night, which results in reduction of process time for the next morning.
As per the suggestions mentioned above the small fraction of time also impact lot of difference in the
productivity of the warehouse. I came up with various proposals and ideas that the company is still looking
into using, and I would like to recommend that the company continues to give same support and the
experience to other interns to come. All in all, it was great experience working with the company, and it has
given me insight on how to shape my career for greater responsibilities in the near future.
I can conclude that there have been a lot Ive learnt from my work at ITC Ltd.
pg. 71
8. KEY LEARNINGS AND CONTRIBUTION TO THE ORGANIZATION:
Learning:
Time managing.
I understood what the project leader wants and act in the direction she/ he wants.
Contribution:
I got a chance to do back checking and briefing of questionnaire and I did it successfully.
Overall Experience:
Working for ITC under this Project, has given me the chance to learn and acquire more experience from most
of the activities undertaken during the process, and to meet guides and to share ideas with some of the staff
members. Since the programme went well, there are only few challenges encountered from the start of the
programme to its end. And I would like to recommend that the company continues to give same support and
the experience to other interns to come. All in all, it was great experience working with the company,
additionally being it field and real world work it was kind of challenging as I got responsibility to deal with
various Area executives and it has given me insight on how to shape my career for greater responsibilities in
the near future.
pg. 72
9. ANNEXURE
10. REFERENCES
1. https://www.scribd.com/
2. http://itcportal.mobi/itc-overview.pdf
3. http://itcportal.mobi/itc-brands-brochure.pdf
4. https://www.slideshare.net/
5. https://www.ibef.org/download/FMCG-May-2017.pdf
pg. 73
pg. 74
pg. 75