Introduction about Godrej & Boyce

Godrej & Boyce Mfg. Co. Ltd, today, one of the largest engineering and consumer Products
Company in the country has varied interests from engineering to personal care products. It is
also one of the most respected corporate houses known for its philanthropy and initiation of
labour reforms besides being recognized for its values of fair, transparent andethical dealings.
The head office is located at Mumbai – Vikhroli The brand Godrej in mind of people across
the country has different meaning to it. The company has a wide range of products including
locks & safe, Refrigerators, Air Conditioners, Furniture’s, Machinery tools, Process
Equipments, Engineering workstation, Cosmetics, Detergents, Edible oil, Chemicals & agro
products. It was the company producing soap without use of animal fat oil for the first time in
the world in the year 1930 & the innovation like this has been followed by the company for
years and now is serving the customers who need innovations across different businesses.
During the Mumbai dock blast, the Godrej safe was the only security equipment that was not
harmed & from the time it has been expected from each and every product under the brand
name Godrej to be of such quality.

Supply chain
Supply chain management (SCM) is the oversight of materials, information, and finances as
they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
Supply chain management involves coordinating and integrating these flows both within and
among companies. It is said that the ultimate goal of any effective supply chain management
system is to reduce inventory (with the assumption that products are available when needed).
As a solution for successful supply chain management, sophisticated software systems with
Web interfaces are competing with Web-based application service providers (ASP) who
promise to provide part or all of the SCM service for companies who rent their service.
Supply Chain Process at Godrej & Boyce Mfg. Co. Ltd. Supply Chain Management (SCM) is
the process used to deliver a company‘s goods to the targeted audience, at the right time, in
the most timely and cost-effective manner possible. It can include everything from sourcing
and manufacturing of a product, to packaging and warehousing inventory, to managing and
promoting sales online through a custom wed store. Additionally, a comprehensive supply
chain management offering should include professional expertise to assist with critical
business decisions as well as world class operational capabilities such as live customer
service and Web- based visibility and Chain Management (SCM) is the process used to
deliver a company‘s goods to the targeted audience, at the right time, in the most timely and
cost-effective manner possible. It can include everything from sourcing and manufacturing of
a product, to packaging and warehousing inventory, to managing and promoting sales online
through a custom wed store. Additionally, a comprehensive supply chain management
offering should include professional expertise to assist with critical business decisions as well
as world class operational capabilities such as live customer service and Web- based visibility
and reporting.

Logistics
Logistics is generally the detailed organization and implementation of a complex operation.
In a general business sense, logistics is the management of the flow of things between the
point of origin and the point of consumption in order to meet requirements of customers or
corporations. The resources managed in logistics can include physical items such as food,
materials, animals, equipment, and liquids; as well as abstract items, such as time and
information. The logistics of physical items usually involves the integration of information
flow, material handling, production, packaging, inventory, transportation, warehousing, and
often security. In military science, logistics is concerned with maintaining army supply lines
while disrupting those of the enemy, since an armed force without resources and
transportation is defenceless. Military logistics was already practiced in the ancient world and
as modern military have a significant need for logistics solutions, advanced implementations
have been developed. In military logistics, logistics officers manage how and when to move
resources to the places they are needed.
Logistics management is the part of supply chain management that plans, implements, and
controls the efficient, effective forward, and reverse flow and storage of goods, services, and
related information between the point of origin and the point of consumption in order to meet
customer's requirements. The complexity of logistics can be modelled, analyzed, visualized,
and optimized by dedicated simulation software. The minimization of the use of resources is
a common motivation in all logistics fields.

Warehouse
A warehouse is a commercial building for storage of goods. Warehouses are used by
manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are
usually large plain buildings in industrial areas of cities, towns and villages. They usually
have loading docks to load and unload goods from trucks. Sometimes warehouses are
designed for the loading and unloading of goods directly from railways, airports, or seaports.
They often have cranes and forklifts for moving goods, which are usually placed on ISO
standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing
materials, spare parts, components, or finished goods
associated with agriculture, manufacturing and production. In Indian English a warehouse
may be referred to as a godown. Godrej and Boyce Manufacturing Ltd. have its two
warehouses near Ahmedabad city. One warehouse is situated at Sanathal and another one is
situated at Changodar. Sanathal warehouse deals with products like Interio, Locks, Security
equipments, Storage Solution Group, Material Handling Equipments, and Prima. Changodat
warehouse deals with the Appliances i.e. Refrigerator, Washing Machine, Air Conditioners,
Microwave Ovens. The warehouse at Godrej & Boyce Mfg. Co. Ltd., majorly does the
following tasks in order to decrease the cost to company:

Management at Warehouse
Warehouse Management System is a flexible scalable solution, offering
seamless integration to control and optimize automated material handling equipments.
The system manages and co-ordinates all major functions of warehouse right from goods
reception to dispatch.

FUNCTIONS OF WMS

Palletisation / Re-palletisation

Put-away

Issuing

Cross Docking

Tracking

Bin blocking

Put-away/Retrieval order / command reversal process

Reports generation (Item, location, day & date, Transaction, etc)

ERP acknowledgement.

WMS MODULES
The WMS is a modular structure, where each module handles a dedicated function. The main
modules of WMS are as below.

INVENTORY MANAGEMENT MODULE

This module handles the function of tracking material transactions and stocks within the
warehouse. The item details are stored or updated within the database depending on the
warehouse transactions. Partly, the module is also responsible for data updating to ERP
system through appropriate data links.

HANDLING CONTROL MODULE

While the WMS is performing the logical management of the Warehouse, Handling Control
Module handles the physical process of the automated material handling system. Handling
Control module is the bridge between WMS and machine controls. Handling Control module
controls the warehouse at physical level. The main features are as listed below.

Machine movement task management

ID Device resource management (Barcode/Tag readers, weight control, etc)

System log and transaction log

Error logging and handling

• Freight Management: It is one of the major areas that account a huge amount of cost to any
warehouse and hence its management is very essential to save any extra cost. Freight
management is to handle or direct with a degree of skill, to exercise executive, administrative
and supervisory direction of the loading and transporting of goods that need to be shipped or
transported from one destination to another resulting in compensation. For the purpose the
warehouse managers at Godrej plan the route & form the load in accordance to the vehicle
against the price of the goods sold which is known as TFL (Truck Full Load), and requests
the vehicle accordingly to reduce the cost during the outward process.
After taking the run for order booked the warehouse carry out the outward process for
delivering of orders as follows:

The pick list is generated against the order booked in BaaN of which route planning is done
according to destinations of order booked. If the order is multi location then the warehouse
supervisor needs to make a cost benefit analysis against the total Truck Full Load of items to
be dispatched for each destination. The analysis is required if single vehicle should be send or
multi small vehicle is beneficial.
The order quantity in BaaN form is converted into excel sheet to pick the item mentioned and
stage them at staging area for further loading. As soon as the vehicle arrives at the bay of
loading division the staged material is loaded after the inspection of any discrepancy between
the order & staged item by WHS & Security guard. After which system entry is done to
update the system stock & then the vehicle is released with appropriate papers.

The transporters for Ahmedabad warehouse are Jay Mahakali Roadways, Radhe Krishna
Roadways & SR. RoadwaysThe whole Gujarat state is divided amongst these three
transporters. Jay Mahakali Roadways makes the dispatches of appliances for the north
Gujarat. Radhe Krishna Roadways deals with Saurashtra and local delivery of Ahmedabad
city. While S.R. Roadways deals with the rest of the Gujarat for the dispatch purpose.
Generally, these three transporters make deliveries of appliances to the dealers. For the
individual customers in the local area i.e. in an Ahmedabad city the loading auto rickshaws
make the delivery on a per piece basis

Inventory management is a science primarily about specifying the shape and placement of
stocked goods. It is required at different locations within a facility or within many locations
of a supply network to precede the regular and planned course of production and stock of
materials.

The warehouse manager is informed about the dispatches that are done against order and is in
contact with transporter in case, gathering information about the estimated receiving date
against purchase order made for indenting process. The item may be coming from H.O and if
the stock is not available at H.O. then inter branch transfer might take place. The inward
might also take place of goods coming from customer return. The warehouse head plans the
activity according to the estimated delivery for the day and on the arrival the vehicles are
unloaded according to the man power resource available at warehouse in sequence of arrival
of vehicle.
When the vehicle enters the premises of warehouse the entry of vehicle is done in the gate
register. Then vehicle comes to unloading bay where the visual inspection of truck is done in
order to check any damage and to keep a look upon damages during the unloading of stock
and to find out any discrepancy in stock quantity. If any discrepancy is found in the stock
against PO then it is noted on GCN. After unloading the unloading sheet containing the count
of items unloaded it is signed by the driver and then all documents are sent to computer entry
operator for the system entry for stock updating.
They also do a Perpetual Inventory Count daily in order to find any discrepancy in the stock
at warehouse. Perpetual Inventory Count is a process in which the wall to wall count of stock
is not done whereas the stock count of only those SKU’s is done where any movement of
stock was done on previous day. This helps in time saving which is consumed by W2W
count. But they do also have W2W count once in a month to check if there is any discrepancy
due any other activity than stock movement that might be internal movement, outward,
inward or any other reason. Another aspect to management of inventory is managing the
damaged & defective inventory at warehouse. Damage and defect are altogether similar but
are warehouse these both are different. Damage is any lack of quality in accordance to
standards.

Defects such as the compressor is not able to cut off the according to room temperature, the
air conditioner is not able to cool the room, Refrigerators not able to provide conditions that
can keep the vegetables fresh, and defects similar to these kind. At Godrej & Boyce Mfg. Co.
Ltd., The damaged and defective stocks are kept separately into different SKU’s so as these
items may not go out for delivery and further processing on these products in order to treat
them and gain returns. The damage may be of primary type that is manufacturing defect
which might be from the Head office side or other may be of the secondary type that is the
material is sent to dealer and damage occur there.

As in Interio division if the product is identified as scrap would be sent to warehouse D1’, if
there is minor damage like scratches or dents than it is sent to D2’ and is sold at 70% discount
as a second sale and if the items is not fully functional due to lack of any part then it is to
warehouse D3’. In addition to this if any manufacturing defect is found in the above
categories then they are sent to their sub categories namely D49, D50 and D51.
To keep the movement of stock and decrease the storage cost of the items stored at warehouse
the norms for the service department is set to work quickly upon the stocked items. Any item
coming to the inspection warehouse should be moved within 7 days as per the categorization
and
any item coming to D3 warehouse should be repaired and moved to FG within the 15 days.
The items in D2 are sold at Second sale mela quarterly and for disposal of scrap items is
carried out on monthly basis for which the scrap dealers are fixed to sell the scrapped
material.

Stock Health Management:-

Stock health management is one of the toughest jobs to perform at warehouse. One need to
take care of each and every aspect of safety in according to safeguard the stock piled at
warehouse. Damages that might occur at warehouse are the one during piling of stock,
internal movements, damages due to rodents, obsolete stock and other. At Godrej & Boyce
Mfg. Co. Ltd. Warehouse they maintain the stock health by the following: They do have
rodent boxes in order to safeguard the electronic items from damages, do have SOP’s and
predefined safety rules to follow in order to protect stock from damages & Mishandling.
They do follow FIFO process during dispatches in order t o move the old stock that is lying at
the warehouse. For the same purpose they have colour coding bands & TO’s contains the
instruction which priced material is to be dispatched.

Even the norms of stacking are defined on the packaging of the product and keeping them
according to the norms is essential in order to protect the product from damages from
overloading or mishandling. For this the labours at warehouse are trained and encouraged to
pile up the stock according to the norms. The ware house is area is divided into three parts:
 Area for keeping the stock which is divided into SKU’s
 Area for walking known as Aisle
 Area for office work
The warehouse keeper ensures that the product is kept according to norm so as to keep stock
safe and properly utilize the space available for stocking. It also ensures that no material is
kept in such a way that product is not lying in the walking area as it could possibly cause
hazard to the material as well as to the manpower employed at warehouse which is also a loss
to company.

Conclusion:-
The logistics department of the company should be focused to reduce the cost incurred over
it. Moreover these logistics department cannot alone fulfil the requirement without an
arrangement of proper warehousing facilities. These warehouses should be able to effectively
manage the inventory lying at their place in order to maintain its quality, quick and timely
delivery to customers and keeping safety stocks at the time of high demand. If any company
is able to manage these two functions effectively & efficiently than it can cut down its cost at
avery high extent.

Suggestions:-
Godrej & Boyce Mfg. Co. Ltd. it is effectively able to manage these two main functions at
Ahmedabad warehouse. But with a little transformation and modernization to their warehouse
they can effectively cut to the cost of these operations carried out.
1.Assesing warehouse floor plan where the products is placed and either buy or rent
2.warehouse lay out :-minimize the handling goods and use of maximum places create some
working spaces.
3.Install warehouse racks and shelves.
4.Organize the inventory control.
5.Labelling the products.
6.doing Regular Maintenances.
7. Have stock in correct category that can be done by the inspection team to make sure no
product is lying in wrong category and a check on regular basis should be done.

References:-
http://www.godrejconsoveyo.com/GodrejConsoveyo/wms.aspx?id=362&menuid=446

http://www.godrejandboyce.com/GodrejandBoyce/pdf/annualReport2016.pdf
https://www.techshristi.com/summer-internship-report-on-godrej-boyce-mfg-co-ltd/