MBA-2018

Global
Inbound Change in Recomme
Supply Supply
Organizati & Value Typical Logistics ndations
Chain & Chain
on at a outbound Chain Issues of and for
major Detail of
glance Logistics mapping Logistics Transport Improvem
Infrastruc JSL
Details Strategy ent
ture

5
4
CONTROL
3 The Overall Cost of
IMPROVE Production by proper
The Supply Chain SCM and Logistics
2 Management
ANALYSE costs.
The Supply Chain Process and Logistics
1 MEASURE Management Cost
The Inbound- System viz.
DEFINE Outbound Logistics
The Objective: cost and total transit
time
Understanding the
Logistics & Supply Chain
Management of JSL

30.04.2019 JSL CASE STUDY Slide No.: 2

MBA-2018

JSL GLOBAL PRESENCE JSL FINANCIAL PERFORMANCE Point to Ponder:

JSL uses SCOR (Plan, Source,
Make, Deliver, Return(recycle)
Model in order to describe
supply chain activities from
suppliers to customers.

 Largest stainless steel manufacturer in India. Logistics expenditures for Jindal Stainless Limited
 Operates an integrated stainless steel plant at Jajpur, Odisha. Sl. No Logistics Spending FY’ 13-14 FY’ 14-15 FY’ 17-18
 ‘State-of-the-Art’ machinery and engineering from the best of European
suppliers, capable of producing globally competitive stainless steel products. 1 Inbound Logistics 976 1101 108
 Well established distribution network with service centre access in both
Domestic and overseas market to optimize customer service and deliveries. 2 Outbound Logistics 592 676 547

3 Annual turnover in Crs. 11700 12401 12566

Point to Ponder:
JSL spends a minimum of average 14.16 % on logistics as
compared to international standards of 8%.

30.04.2019 JSL CASE STUDY Slide No.: 3

 A.K.Jain & Brothers | Kolkata
A-1 Acid Pvt. Limited | Gujrat Bajaj Electricals | Bhubaneswar C&I Systems | Kota
123 Ply | New Delhi Bajrang Enterprise | Jodhpur CAD Studio | New Delhi
PT. Sif Makmur | Jakarta Balasore Alloys Limited | Balasore Caldery’s India Refractori | Nagpur
Dynamatic Technologies | New Delhi Aasix Nano Technologiees | Mohali Bearing Manufacturing | Mumbai Carbon Rotofluid | Ahmedabad
East Coast Magnets | Kolkata ABB India | Kolkata Bells Electrotech | Kolkata Carrier Airconditioning | Kolkata A.K.Jain & Brothers | Kolkata
Eastern Railways | Bhubaneswar ABR Enviro Systems | Indore Bevcon Wayors Pvt. Limited | Hyderabad Ceat Limited | Mumbai A.G.Electronics | Mumbai
Aerotech Systems | Hisar Bharat Aluminium Company | Faridabad Conserve Tech Systems | Pune A-1 Acid Pvt. Limited | Gujrat
Econship Tech Pvt. Ltd. | Navi Dee Kay Gears | Mumbai
Alfa Laval India Limited | Pune Bharat Electronics | Bangalore
Mumbai
Ambuja Cements Limited | Jaipur Bhushan Steel Limited | Raigad Delta Electricals | Ahmedabad A-One Industries | Haridwar
Electrogears India | Kolkata Ammonia Supply Company | Ranchi Blue Star Limited | Mumbai Diamond Saw Mills | Sirsa 123 Ply | New Delhi
Ellnbarrie Cryogenics | DKS Desiccants | Noida PT. Sif Makmur | Jakarta J.P Constructions | Hisar
Visakhapatnam Duex Industrial Systems | Mumbai
Jain Ferro Alloy | Mumbai
Emerson Process Management | Jainson Labs | Meerut
Chennai Jalan Refratech | Dhanbad
EPP Composites | New Delhi JDC Traders | New Delhi
Fairtech Engineers | Mumbai JCB India Limited | Pune
Jindal Automation | Roorkee
Fabco Universal | Dellhi Johnson Machineries | Nagpur
Ferrocare Machines | Pune Kaeser Compressors | Pune
Firpack Textile Mills | Jaipur Kirloskar Brothers Limited | Kolkata
Flowcon Engineers | Coimbatore KSB Pumps | Noida
Galaxy Motors | Gurgaon Larsen & Toubro | Mumbai
Gastek Engineering | New Delhi
Gear & Drives | Bangalore
General Electric | Mumbai
Global Engineering | Bhopal
HEG Limited | Noida
Hapag Lloyd India | New Delhi
HCL Infosystems | Noida
Hewlett Packard | Bangalore
Himadri Chemicals | Visakhapatnam
Hindalco Industries | Indore J.P Constructions | Hisar Industech Engineering Services | Bhubaneswar
IFM Electronic | Kolhapur Jain Ferro Alloy | Mumbai Lloyd Insulations India Limited | Kolkata
Indian Oil Corporation Limited | Karnal Jainson Labs | Meerut Jindal Steel & Power Limited | Raigarh
Indo Electricals | Vadodra Jalan Refratech | Dhanbad Caldery India Refractories | Nagpur
ITW India Limited | Medak JDC Traders | New Delhi Crane Control Equipments | New Delhi
Kaeser Compressors | Pune Essae Technology Pvt. Limited | Bangalore
Kirloskar Brothers Limited | Kolkata Lincoln Helios India Limited | Bangalore
KSB Pumps | Noida Rotamic Hydraulics Pvt. Limited | Kolkata
Larsen & Toubro | Mumbai Moog Motion Controls | Bangalore
International Combustion | Aurangabad
Elecktromag Methods | Mumbai Yesdee Electronics | Mumbai
Fairtech Engineers | Mumbai Tempsens Instruments India | Udaipur
Hitech Lubrication Systems | Faridabad Dell International Services | Bangalore
Sunbeam Industrial Products | Mumbai Premier Industrial Corporation | Kolkata
Plazma Technologies | Pune Shell India Markets Pvt. Limited | Angul
Indo Chemicals & Instruments | Cuttack Servo Controls & Hydraulics | Belgaum
Siemens Limited | Kolkata Thermax Limited | Vadodra
Symbiosis | Angul Yuken India Limited | Bangalore
Voltas Limited | Bhubaneswar Dee Kay Gears | Mumbai
Shalimar Paints | Cuttack Wika Instruments | Pune
Scientific Traders | Balasore Akers AB | Sweden Everest Analytics | Mumbai
Emerson Process Management | Chennai Sinosteel Equipment & Engineering | Beijing Lightkrafts | Kolkata
Rolex Industries | Mumbai Tenova Spa | Castellanza
Atlas Copco India Limited | Kolkata Thermocast Spa | Italy
Dantal Hydraulics Pvt. Limited | Gurgaon KTB Import-Export | Hamburg
Tractors India Pvt. Limited | Bhubaneswar Apex Fluidomatics Pvt. Limited | Naroda Primetals Tech Gmbh | Austria
C&I Systems | Kota Comac India Pvt. Limited | New Delhi AFS Sedan | France
CAD Studio | New Delhi Skytech Automation | Coimbatore Romani Srl | Italy
Caldery’s India Refractori | Nagpur Jindal Coke Limited | Jajpur Jiangsu Gongchang Roll Joint | China A.K.Jain & Brothers | Kolkata
Prama Instrumentation | Navi Mumbai
Carbon Rotofluid | Ahmedabad
Teisen Fire Control | Mumbai
Herberholz Gmbh | Ennerpetal A.G.Electronics | Mumbai
Carrier Airconditioning | Kolkata Lankhorst Engineered Products | Dublin
Ceat Limited | Mumbai Gauss Magnetics | Kolkata A-1 Acid Pvt. Limited | Gujrat
Toshniwal Industries Pvt. Limited | Ajmer
Conserve Tech Systems | Pune Kilner Vacuumation Limited | Sheffield A-One Industries | Haridwar
Piper Gmbh | Schwerte
Dee Kay Gears | Mumbai 123 Ply | New Delhi
30.04.2019 Slide No.: 4
Noritake Company Limited | Nagoya
Voith Turbo Gmbh | Crailsheim PT. Sif Makmur | Jakarta
Itipack SRL | Vicenza
Ship Containers Raw Material Handling
System Chrome pre-melter AOD Converter

Mines

Railway Wagon
Scrap Yard Electric Arc Furnace

Scrap
Vendors

warehouse

warehouse Bell Annealing Furnace

Packaging Unit

warehouse

Plant
Unpack and
Warehouse
Customer quality check
warehouse at End
customer

30.04.2019 JSL CASE STUDY Slide No.: 5

MBA-2018
Sl. No Product Line Maximum width (MMs) Thickness (min-mm) Thickness (max-mm)

Product code Name of the items covered for inbound logistics

1 Slabs 1650 160 250
X Mild Steel Scrap, Nickel cathode, Ferro Nickel 2 Blooms 200 260 200

Low carbon Ferro chrome, Ferro silicon, Silicon manganese, 3 HR Coils 1650 2.0 12.7
Y
Molybdenum 4 HRAP Coils 1650 1.4 105
Z Dolomite lime, casting powder and chrome ore 5 CR Coils 1600 0.3 5.05

6 Plates 1650 12.7 80.15

Port Location
Plant

Product no. 1&6 Product no.2 Product no. 3&5 Product no.4
Product X Product Y Product Z

In Plant warehouse
Ferro Alloys & Fluxes
Scrap
Refractory’s
Quality Inspection Quality Quality
Container Yard SMTP route Railway siding
Fumigation Quality Inspection Inspection
Customs
Examination SMTP route Inspection Fumigation Fumigation Fumigation

Examination Lashing & Lashing Lashing Lashing

customs Customs Choking &Choking &Choking &Choking
Local Container Warehouse Warehouse Warehouse
Stuffing & cont.
Multimodal Route Freight Station
In plant siding CFS & Port CFS & Port CFS & Port
Customs
In plant siding area area area
Plant Warehouse Plant warehouse and
Plant Area gate in Vessel
Storage Area Origin Port
Storage Area Storage area
30.04.2019 Customer Warehouse Slide No.: 6
MBA-2018

Inbound value chain of JSL Outbound value chain of JSL

1-3 days 1-2 days 1-2 days 1-3 days 1-2 days 1-2 days
Supplier Ware
Shipping Lines Port Vessels Plant Shipping Lines Port Vessels
house

28-30 days 28-30 days

Plant Transport Customs Port Supplier

Transport Customs Port
warehouse
1-3 days 1-2 days 1-2days 1-3 days 1-2 days 1-2days
Timings Total Transit Time Timings Total Transit Time
Sl. no. Inbound Activities (No. of days) (in days) Sl. no. Outbound Activities (No. of days) (in days)
Loading at shippers warehouse (depending
1 upon the nature of cargo) 1 to 3 3 1 Packing and Lashing at Plant Warehouse 1 to 3 3
Shifting the cargo from warehouse to shipping Cargo gets handed over to agent of
2 line yard/truck/railway and warehouse agency 1 to 2 2 shipping/truck/railway company for advance
3 Loading into vessel/ truck/railway 1 to 2 2 2 boking 1 to 2 2
Voyage transit time to Indian Port/ state 3 Loading of cargo into vessel/truck/railway wagon. 1 to 2 2
4 boundaries etc. 28 to 30 30 4 Voyage time to destination port/state. 28 to 30 30
5 Documentation and customs clearances 1 to 2 2 5 Custom clearances and payment of taxes 1 to 2 2
Transportation of material from port to plant by
6 rail /road or through multimodal route yards. 1 to 2 2 6 Transportation of cargo to warehouses 1 to 2 2
Shifting of material from store to plant for
7 production 1 to 3 3 7 Shippers site and warehouses 1 to 3 3
The value chain mapping indicates the material flow starting from shipper‘s Outbound logistics of company A is very challenging since the products are
warehouse to the steel manufacturing plant in India. in different sizes in nature and required specific packing as per the
requirement of overseas customer.
30.04.2019 JSL CASE STUDY Slide No.: 7
MBA-2018

Information IT Capabilities
Interchange Suppliers
Material
Handling method
Materials Control Logistics Lack seaworthy
Handling Storage
Truck drivers Packing
Knowledge Trailers
Air/sea Packaging
Air Shipment Lack of Business Knowledge
Dispatches Loadability Trucks High Inventory
Water mode Loose Materials Low purchase
Arrivals

In transit theft In transit pilferages

Documentation Full vessel loadings Quality loss in transit

Bill Processing Value Added

Old Technology Payment Govt. Cost for
End user Products
used Regulation Plant Location handlings
Storage for prime
metals
Plant Scrap Yards

Poor Handling For lime &

Non-skilled labors Manual handling

LEGENDS
 Issues pertaining to Logistics is found using SAP (Actor, Situation and Process) methodology
Result
 SAP helped to understand the implications of the issues resulted out of situation, process Actor
or the acting agency as depicted in the above diagram. Situation
 Inefficiency in any of these 3 elements paves way to increased logistics cost. Process

30.04.2019 JSL CASE STUDY Slide No.: 8

 PREVIOUS
 Creation of new service Centre facilities in Gurgaon, Mumbai, Vadodara and Chennai
SERVICE & for better last mile logistic and reduction of ware house cost due to economy of scale
WAREHOUSE in transportation.
LOCATIONS

 Set up of warehouses in Hyderabad and Kolkata that look after the regional markets
and a retail outlet for off-the-shelf products has also been set up in Mumbai.

 By incorporating new service centres the overall capacity of our processing lines i.e.
Slitting, Cut-to-Length and Polishing lines across the domestic network are 290,000,
160,000 & 10,000 tons per annum respectively.

 The strategic location of all the service centres is catering to the scattered stainless-
steel requirement of India. JSSL’s distribution services meet specific requirements of
PRESENT
SERVICE & customers effectively and efficiently.
WAREHOUSE
LOCATIONS
 Apart from this, the company also has a series of satellite marketing offices in all the
major cities of India.

30.04.2019 JSL CASE STUDY Slide No.: 9

  JSL depends on Vishakhapatnam port for containerized movement of both Imports and Exports which is at a distance of around
500km as container handling facilities do not exist at both ports Paradip and Dhamara closer to the Plant. So JSL should make joint
venture to create container handling facility either at Paradip, or Dhamara port. This will not only reduce logistics cost but also
turnaround time significantly for the company.
 The 0.8mtpa plant is located in Odisha’s Jajpur district, which is well-connected with road and rail transportation and has proximity
to raw materials. But due to unavailability of trucks the inbound and outbound logistic is facing problem. So JSl should choose a
logistic vendor which can maintain 100% availability of trucks.
 Spread over 800 acres, the plant is not constrained by space so JSL should develop raw material stock yard for easy and timely
unloading of containers and trucks for better transportation cost by avoiding detention charges.
 Proper equipment should be available at plant and warehouses for material handling so that work can be completed within the
stipulated time in turn cost savings due to additional logistics can be avoided.
 Paving and concreting of storage area can be carried out for the smooth bulk cargo handlings to avoid material handling losses.
 Associate service provider Partner, port agency and National Highway authority should be given the freedom to implement
innovative ideas for material transport.
 External factors like climatic condition, geographical and political factors of the region also to be taken into consideration pertaining
to Logistics & Supply Chain Management.
30.04.2019 JSL CASE STUDY Slide No.: 10
MBA-2018

Raw material HSM Vendor SMS Vendor CRM Vendor Logistics Process
Import Data_JSL Details Details Details Flow_JSL

SS JSL Corporate
Export-Domestic_JSL Presentation

Declaration: The data and datasheets presented in the PowerPoint presentation is used for Academic purpose only.

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MBA-2018

30.04.2019 JSL CASE STUDY Slide No.: 11