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Managing small lots

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Pradipta Mukherjee Kolkata
Last Updated : Feb 26 2013 | 12:24 AM IST
, VP - marketing & commercial, says Raymond India prefers to move goods entirely by road.
 
What are the problems in logistics you face and how do you combat these?
 
The main problem is the handling of small lot sizes for incoming and outgoing materials.This is handled through contracting with the transport companies who have expertise in such operations.
 
What is the degree of automation,based on what IT package?
 
We have in-house developed legacy system which are used for production planning, commercial, accounts, finance and marketing. We are now switching over to the ERP system very shortly thereby integrating operations across various plants.
 
How much of logistics is in-house and how much is outsourced?
 
Entire warehouse management is controlled by our team. Entire transportation is outsourced with the truck fleet owned by reputed transport companies. We find it to be more economical and practically feasible due to need to handle small lots and remote destinations.
 
What is the average cargo handled in a month?
 
For outbound finished goods it is about 25 lakh metres of fabric every month. For inbound raw material, it is about 1100tons of various products and 11 lakh metres of fabric, all done by trucks.
 
For outbound finished goods this works out to about 100 trucks per month. For inbound raw materials we use about 140 trucks per month.
 
What is the average time for supply from factory to consumers?
 
About 5 "� 7 days.
 
What is the average time for stock holding in godowns / warehouses?
 
About 30 days for finished goods.
 
What is the existing structure for supply of raw materials to factories?
 
Transportation is usually arranged by the suppliers. For full lorry loads, material is directly supplied to the final destination.
 
For smaller loads, it is usually delivered to our warehouse at Bhiwandi,Dist. Thane from where it redirected to the final destination. For imported materials, sea freight is arranged by the supplier. Further transportation from the docks to our units is arranged by us.
 
What is the supply chain from factories to retail outlets/stores?
 
There are three channels for distribution for sale comprising the wholesaler;franchises and retailers. Goods are directly despatched from mill to the concerned through road transport.
 
How many factories do you have and in which locations?
 
Our four factories are at Thane and Jalgaon in Maharashtra, Valsad in Gujarat and Chhindwara in Madhya Pradesh.
 
How much is the cost of logistics in the company's operation?
 
Annual expenses on transportation is about Rs 4 crore. This is about 0.5% of the total cost of operations.

 
 

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First Published: Feb 12 2007 | 12:00 AM IST

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