CHAPTER-1 1.

1 Introduction Logistics
Logistics can be defined in simple words as the process of providing the right resources in right quantity at the right place at the right time for efficient and effective performance of goal oriented activity. It is a part of the supply chain process that plans, implements and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer requirements. Logistics is not restricted within the boundaries of transporting, it also involves simplifying the processes and in the process adding value and get rid of non-value ones. It can also be called as a channel of the supply chain which adds the value of time and place utility. Logistics services, information systems and resources form the three basic components of logistics system and these are closely interconnected. Almost all activities of logistics services are bi-directional. Information systems include modelling and management of decision making, and more important issues are tracking and tracing. It provides essential data and consultation in each step of the interaction among logistics services and the target stations. Infrastructure comprises human resources, financial resources, packaging materials, warehouses, transportation and communications. Logistics has become a challenging and an important activity because it serves as an integrating or boundary spanning function. It links suppliers with customers and it integrates functional entities across a company. With the ever-growing competition in todays market place it becomes necessary for a firm to use its resources to focus on strategic opportunities. This includes several internal factors like management style, culture, human resources, facilities and several external factors like technology, globalization and competition. This is where the concept of logistics plays a major role, i.e. it helps to leverage certain advantages the firm has in the marketplace.

1.2 Forms of Logistics Operations

a) Reverse Logistics Reverse Logistics is also known as Product Recall. It may be defined as a process of moving goods from their place of use, back to their place of manufacture for re-processing, refilling, repair, and recycling or waste disposal. The concept of reverse logistics has been applied in promoting customer service and resources recycling. Concerning quality control, the defective components and finished products will be returned to their producers through reverse logistics systems. Nowadays, reverse logistics has been developed rapidly for increasing industries competitiveness, promoting customer service level, and recycling the reusable material. Meanwhile, the demand of reverse logistics brings out a new market for the third-party logistics industries. The main reasons for reverse logistics can be as follows 1. Rigid quality standards- it is critical in case of contaminated products, which can cause environmental hazard. 2. Rigid laws prohibiting unscientific disposal of items 3. Rigid laws making recycling mandatory 4. Transit damage e.g. leaking containers containing hazardous material. 5. Product expiration. 6. Erroneous order processing by supplier 7. Exchange of new product for the old ones. 8. Return for repair or refill.

b) Inbound Logistics All the activities related to the material movement till the dispatch of the products out of the factory gate are called as inbound logistics activities. The creation of value in the products depends upon availability of inputs on time. Making available these inputs on time at minimum cost is the essence of Inbound Logistics. Activities of a procurement performance cycle come under
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the scope of Inbound Logistics. They are transportation during procurement operation, storage, handling and overall management of inventory of inputs. Process of Inbound Logistics

Sourcing

Order placement & expediting

Vendor (Supplier)

Receiving

Transportation

c) Outbound Logistics All the activities in which the value added goods are to be made available in the market for customers are called as outbound logistics activities. The overall success of the firm depends upon the supply of products to the customer on time. Supplying the products of firm at marketplace at minimum cost is the essence of Outbound Logistics. Activities of distribution performance cycle come under the scope of Outbound Logistics. They are order management, transportation, warehousing, packaging, handling etc.

Process of Outbound Logistics

d) Third-Party Logistics (3PL) In order to keep the costs of inbound and outbound logistics activities under control, an outside agency appointed to perform these logistics functions is called Third Party Logistics. It is a provider of outsourced logistics services which may encompass anything that involves management of the way resources is moved to the areas where they are required. It may be either a single service such as transportation or warehouse storage or it can be a system-wide bundle of services capable of managing the entire supply chain.

e) Forth-Party Logistics (4PL) Forth Party Logistics is a complete outsourcing of manufacturing and logistics functions including selection of Third Party service provider. The concept of Fourth-Party Logistics (4PL) provider was first defined as an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third party logistics (3PL) service provider targets a function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor who manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer
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1.3 Modes of Transportation

a) Maritime Logistics Maritime industry plays an important role in international freight. It can provide a cheap and high carrying capacity conveyance for consumers. Low capital cost and operating cost are the main characteristics of water transport. Heavy and bulk goods of large quantities are transported by this mode. There are some disadvantages associated with water transport which includes the non availability of harbour, need of more time as compared to other modes of transport. It also requires a secondary mode of transport to deliver to the ultimate customer

b) Air Freight Logistics

Air freight logistics is necessary for many industries and services to complete their supply chain and functions. It provides the delivery with speed, lower risk of damage, security, flexibility, accessibility and good frequency for regular destinations, yet the disadvantage is high delivery fee. But the fixed costs are lower than rail or road or pipeline. It also brings distant markets closer. The full potential of peak seasonal demand can be exploited using this type of transport. It also makes the test marketing process easy as the products can be shipped directly from the factory. High operating cost and the need for secondary transport are the main disadvantages.

c) Land Logistics Land logistics is a very important link in logistics activities. It extends the delivery services for air and maritime transport from airports and seaports. The most positive characteristic of land logistics is the high accessibility level in land areas. The main transport modes of land logistics are railway transport, road freight transport and pipeline transport.

a) Railways

It is comparatively the fastest mode of transport and also the inexpensive one. This is mainly suitable for transporting large quantities and provides door deliveries for industries. But rail transport is an unreliable mode of transport especially for high value goods and directly usable consumer goods. It lack flexibility of high-speed delivery and require modal combination along with roadways. Rail network needs a high capital investment due to right of way, switching yards, and terminals.

b) Roadways It is a speedy mode of transport and delivers the goods directly to the consignee very fast. High flexibility is the peculiarity of this mode of transport. It is the ultimate mode as the consignment reaches the doorsteps of the customer. It has low capital cost as compared to railways. The operating cost is high to fuel requirement and higher labour requirement and the occasional fuel shortages leads to delay in delivery. Also the strikes of carriers, limited availability of trucks and restrictive permits for licenses are the main disadvantages. c) Pipeline Pipeline mode of transportation facilitates the movement of liquids like oils; crude petroleum products and water etc. In India more than 5,000 km of pipeline exists for crude and petroleum products. Slurries, gases, vapours and solids in powder form are also transported in pipelines. These are a reliable mode of transport in which pilferage and loss of product is not possible. The energy consumption and the space occupation are minimal for the pipes. It can be operated all time except when it is shut down for maintenance. It has higher fixed cost but lower operating cost and since the pipelines are fixed the accessibility of product is limited on the route.

1.4 Objectives of Logistics

Marketing logistics involve planning, delivering, and controlling the flow of physical goods to a market as well as the material and information necessary for meeting the needs or demands of the customer and also these demands must be met at a profit that increases revenue for the organization. The General objectives of the marketing logistics can be summarized as: As logistics cost forms a major portion of the total cost of organization, installation of most appropriate logistics practices helps in the reduction of cost. Capital reduction is also another major objective of marketing logistics. Customer service level is always an output of proper logistics system. So as the logistics practices become more and more ideal, the service provided to the customer goes on increasing. Other than the general objectives there are certain specific objectives to ensure the flow of supply of finished products to the customers. The entire process of manufacturing of a company depends on the demand or the requirement of the customer, so the right product should be manufactures and distributed to the customers. The product given should be in right quantities because quantities less than the required amount make the customers unsatisfied. The product should be transported to the customers place where ever he is. The time between the order and the delivery should also be minimum. The product should be charged an optimum price and also these should be transported to the customers in the right condition without any damage. However, there are some definite objectives to be achieved through a proper logistics system. These can be described as follows: 1. Improving customer service: As we know, the marketing concept assumes that the sure way to maximize profits in the long run is through maximizing the customer satisfaction. As such, an important objective of all marketing efforts, including the physical distribution activities, is to improve the customer service.

2. Rapid Response: Rapid response is concerned with a firm's ability to satisfy customer service requirements in a timely manner. Information technology has increased the capability to postpone logistical operations to the latest possible time and then accomplish rapid delivery of required inventory. The result is elimination of excessive inventories traditionally stocked in anticipation of customer requirements. 3. Reduce total distribution costs: Another most commonly stated objective is to minimize the cost of physical distribution of the products. As explained earlier, the cost of physical distribution consists of various elements such as transportation, warehousing and inventory maintenance, and any reduction in the cost of one element may result in an increase in the cost of the other elements. Thus, the objective of the firm should be to reduce the total cost of distribution and not just the cost incurred on any one element.

4. Generating additional sales: Another important objective of the physical distribution/logistics system in a firm is to generate additional sales. A firm can attract additional customers by offering better services at lowest prices.

5. Creating time and place utilities: The logistical system also aims at creating time and place utilities to the products. Unless the products are physically moved from the place of their origin to the place where they are required for consumption, they do not serve any purpose to the users. Similarly, the products have to be made available at the time they are needed for consumption. 6. Price stabilization: Logistics also aim at achieving stabilization in the prices of the products. It can be achieved by regulating the flow of the products to the market through a judicious use of available transport facilities and compatible warehouse operations.

7. Quality improvement: The long-term objective of the logistical system is to seek continuous quality improvement. Total quality management (TQM) has become a major commitment throughout all facets of industry. Overall commitment to TQM is one of the major forces contributing to the logistical renaissance.

8. Life-Cycle support: A good logistical system helps to support the life cycle. Few items are sold without some guarantee that the product will perform as advertised over a specified period. In some situation, the normal value-added inventory flow toward customers must be reversed. Product recall is a critical competency resulting from increasingly rigid quality standards, product expiration dating and responsibility for hazardous consequences.

9. Movement consolidation: As the logistical system aims at cost reduction through integration, consolidation, one of the most significant logistical costs is transportation. Transportation cost is directly related to the type of product, size of shipment, and distance. Many Logistical systems that feature premium service depend on high-speed, small-shipment transportation.

1.5 Logistics System Elements

The elements of the logistics system can be as follows: 1. Order processing 2. Warehousing 3. Inventory control 4. Transportation 5. Information monitoring 6. Facilities

1. Order processing: The starting point of physical distribution activities is the processing of customers orders. In order to provide quicker customer service, the orders received from customers should be processed within the least possible time. Order processing includes receiving the order, recording the order, filling the order, and assembling all such orders for transportation, etc. the company and the customers benefit when these steps are carried out quickly and accurately. The error committed at this stage at times can prove to be very costly. For example, if a wrong product or the same product with different specifications is supplied to the customer, it may lead to cancellation of the original order (apart from loss in the credibility of the firm). Similarly, if the order is not executed within a reasonable time, it may lead to serious consequences. High speed data processing techniques are now available which allow for rapid processing of the orders. 2. Warehousing: Warehousing refers to the storing and assorting products in order to create time utility. The basic purpose of the warehousing activity is to arrange placement of goods, provide storage facility to store them, consolidate them with other similar products, divide them into smaller quantities and build up assortment of products. Generally, larger the number of warehouses a firm has the lesser would be the time taken in serving customers at different locations, but greater would be the cost of warehousing.
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Thus, the firm has to strike a balance between the cost of warehousing and the level of customer service.

4. Inventory Control and Management: Linked to warehousing decisions are the inventory decisions which hold the key to success of physical distribution especially where the inventory costs may be as high 15 as 30-40 per cent (e.g., steel and automobiles). No wonder, therefore, that the new concept of Just-in-Time-Inventory decision is increasingly becoming popular with a number of companies. The decision regarding level of inventory involves estimate of demand for the product. A correct estimate of the demand helps to hold proper inventory level and control the inventory costs. This is not only helps the firm in terms of the cost of inventory and supply to customers in time but also to maintain production at a consistent level. The major factors determining the inventory levels are: The firms policy regarding the customer service level, Degree of accuracy of the sales forecasts, Responsiveness of the distribution system i.e., ability of the system to transmit inventory needs to the factory and get the products in the market. The cost inventory consists of holding cost (such as cost of warehousing, tied up capital and obsolescence) and replenishment cost (including the manufacturing cost).

4. Transportation: Transportation seeks to move goods from points of production and sale to points of consumption in the quantities required at times needed and at a reasonable cost. The transportation system adds time and place utilities to the goods handled and thus, increase their economic value. To achieve these goals, transportation facilities must be adequate, regular, dependable and equitable in terms of costs and benefits of the facilities and service provided.

5. Information monitoring: The physical distribution managers continuously need up-to-date information about inventory, transportation and warehousing. For example, in respect on inventory, information about present stock position at each location, future commitment and replenishment capabilities are constantly required. Similarly, before choosing a 16

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carrier, information about the availability of various modes of transport, their costs, services and suitability for a particular product is needed. About warehousing, information with respect to space utilization, work schedules, unit load performance, etc., is required. In order to receive all the information stated above, an efficient management information system would be of immense use in controlling costs, improving services and determining the overall effectiveness of distribution. Of course, it is difficult to correctly assess the cost of physical distribution operations. But if correct information is available it can be analyzed systematically and a great deal of saving can be ensured.

6. Facilities: The Facilities logistics element is composed of a variety of planning activities, all of which are directed toward ensuring that all required permanent or semi permanent operating and support facilities (for instance, training, field and depot maintenance, storage, operational, and testing) are available concurrently with system fielding. Planning must be comprehensive and include the need for new construction as well as modifications to existing facilities. Facility construction can take from 5 to 7 years from concept formulation to user occupancy. It also includes studies to define and establish impacts on life cycle cost, funding requirements, facility locations and improvements, space requirements, environmental impacts, duration or frequency of use, safety and health standards requirements, and security restrictions. Also included are any utility requirements, for both fixed and mobile facilities, with emphasis on limiting requirements of scarce or unique resources.

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1.6 FUTURE PROSPECTS OF LOGISTICS Facing the worldwide competition, the improvement of logistics system should be advanced by both private companies and government. It has been found that three revolutions in business that have substantial impacts on the purchasing and supply strategies of the manufacturing sectors. These three revolutions are: (1) the globalisation of trade; (2) the coming of the information era; (3) more demanding consumers and continuously changing consumer preferences. The main characteristics of future logistics development are: Government role: To keep competitiveness of industries, the government has to lead the way to assist the logistics industries. However it involves large investments and some problems relating laws and national policies. Without the lead and support of government, achieving the plan is difficult. Growth of international goods transport: The up-growth of international freight transport is contributed by several factors. Firstly, the blossoming of Ecommerce pushes ahead the international business activities. Secondly, the change of production strategy needs international cooperation, e.g. importing the semi-finished products from countries with cheaper human resources to those with higher technology to assemble the final goods. Thirdly, the pressure of globalised market, such as World Trade Organization (WTO), pushes local industries to promote themselves to reach an international standard and face the worldwide competition.

Improvement of services: Providing a good customer service becomes a necessary requirement of business operation with the intense competition of global market. The quality of services is the main factor to affect consuming behaviour among the enterprises with high similarity. The service systems involve several developed techniques now, such as Efficient Consumer Response (ECR) and Quick Response (QR). In the near future, more new techniques would be applied in providing better services for customers.

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 Revolution of logistics operation: IT techniques and its products bring efficiency and fluency to the logistics systems. Radio Frequency ID (RFID) is one of these techniques. The main difference between the bar-code system and RFID is that RFID does not need the action of scanning the barcode on goods. RFID could save manual operation time dramatically. RFID systems could sense the amount of goods input in the tags automatically and immediately when the costumers push their trolley through the exit. Shorter product life cycle: With the current trend, the merchandise design is changing day by day, and therefore, the product life cycle is shorter and shorter, especially in computer science. To confront the impacts, logistics system must improve its efficiency and reliability of goods delivery. Otherwise an inappropriate logistics system would hinder the competitiveness of new products and the business profits.

Improvement of logistics facilities: The advancement and development of logistics are based on several techniques and complete theories. High-tech facilities and systems, e.g. IT systems could bring more possibilities and advantages to logistics. For example, the improvement of related facilities, e.g. Forklift Trucks, is necessary for transport efficiency. In the future, factory automation is the main target for the whole supply-chain procedures. It could help to improve efficiency and also reduce the operation costs. Channel cooperation between companies: In order to save the logistics costs, a key concept is to maximize the usage of available transport capacity. Integrating the logistics demands between numerous departments helps achieve this purpose. In practice, a conglomerate could develop its own logistics service for the branches. For some medium size companies, they could co-operate transport channels with others.

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 Specialized logistics delivery: One of the notable trends of logistics industries is specialized delivery service. For instance, delivering fresh food from the place of origin needs low-temperature containers. Computer chips, gases and petroleum need particular conveyances to carry. These demands are rising since the products became more and more delicate. Logistics centres: The development of logistics centres is good for industry promotion and the development of national economic system. Logistics centres could successfully shorten the distance between production and marketing vertically and also integrate various industries horizontally, and thus decrease the costs. Governments can propose special areas for storehouses and logistics to reduce land acquisition. The future logistics will co-operate e-commerce, the Internet and the newly door-to-door service to create new business prospects.

Freight transport: The alliance between middle-small size delivery companies is an important trend in the future. The strategy could help to expand service areas and increase service quality, and meanwhile raise the loads of single trips to reduce delivery costs.

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1.7 Transportation and Logistics Transport system is the most important economic activity among the components of business logistics systems. Around one third to two thirds of the expenses of enterprises logistics costs are spent on transportation. According to the investigation of National Council of Physical Distribution Management (NCPDM) in 1982, the cost of transportation, on average, accounted for 6.5% of market revenue and 44% of logistics costs. Transport system makes goods and products movable and provides timely and regional efficacy to promote value-added under the least cost principle. Transport affects the results of logistics activities and, of course, it influences production and sale. In the logistics system, transportation cost could be regarded as a restriction of the objective market.

Movement 8%

Packaging 12%

Transportation 29%

Warehousing 17%

Inventory 17%

Management 11% Ordering 6%

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1.8 Logistics Cost Logistics cost is a combination of a number of elements. To plan an efficient logistics structure it is necessary to be aware of the interaction between the different distribution costs and how they vary with respect to the different depot alternatives (number, size, type and location). We can see how the individual distribution and logistics
cost elements can build up the total logistics cost.

Storage Cost: Storage cost will increase as the number of depots will increase because there will be a need for more stock coverage, more storage space, more management etc.

Delivery cost: This will concern with the secondary transportation cost i.e. cost of delivery from the depot to the consumer. The greater the number of depots, the lesser is the secondary mileage and the delivery cost.

Trunking Cost: This is the primary transport cost in the supply of products in bulk to the depots from the central finished good warehouses or production points. As the number of depots increases this cost will also increases.

Inventory Cost: The main elements of inventory holding costs are:

Capital Cost: The cost of physical stock. This is the financing charge, which is the current cost of capital to a company. Service Cost: That is stock management and insurance cost Risk Cost: This is incurred as a result of pilferage, deterioration of stock, damage and stock obsolescence.

System Cost: These costs represent a variety of information or communication requirements ranging from the order processing to load assembly lists.
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1.9 Distribution, Logistics & Supply Chain Management

The three concepts of distribution, logistics and SCM are interrelated. Distribution is a component of logistics management, and logistics management is a component of supply chain management. Distribution is outbound logistics, from the end of the production line to the end user. It includes activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. Distribution includes all activities related to physical distribution as well as the return of goods to the manufacturer. In many cases, this movement is made through one or more levels of field warehouses. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfilment, logistics network design, inventory management, supply and demand planning, and management of third-party logistics services providers. Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.

1.9.1 Distribution It is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured it is typically shipped (and usually sold) to a distributor. The distributor then sells the product to retailers or customers. The other three parts of the marketing mix are product management, pricing, and promotion. Traditionally, distribution has been seen as dealing with logistics: how to get the product or service to the customer.

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1.9.2 The distribution channel Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or enduser. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

1.9.3 Channels Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.

1.9.4 Channel members Distribution channels can thus have a number of levels. Kotler defined the simplest level that of direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor, says. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels. In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighbourhood retailers.

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1.10 Statement of Problem

Study about the logistics system of Crompton Greaves Ltd fans division. The focus of the study is to understand the existing logistics practices undertaken by the company and how much efficient is the current system in delivering the finished goods to its customers.

1.11 Literature Review

Gimenez Cristina, Eva Ventura, 2009, Logistics-Production, Logistics-Marketing and External Integration: their impact on Performance, a journal which explains the need for leading companies to implement Supply Chain Management (SCM) to improve performance and gain a competitive advantage SCM involves integration, coordination and collaboration across organisations and throughout the supply chain. It means that SCM requires internal (intraorganisational) and external (inter organisational) integration. This paper examines the Logistics-Production and Logistics-Marketing interfaces and their relation with the external integration process. The study also investigates the causal impact of these internal and external relationships on the companys logistical service performance.

Yung Yu Tseng, Wen Long Yue, Michael A P Taylor, University of South Australia.

The role of Transportation in Logistics Chain The operation of transportation determines the efficiency of moving products. The progress in techniques and management principles improves the moving load, delivery speed, service quality, operation costs, the usage of facilities and energy saving. Transportation takes a crucial part in the manipulation of logistic. Reviewing the current condition, a strong system needs a clear frame of logistics and a proper transport implements and techniques to link the producing procedures. The objective of the paper is to define the role of transportation in logistics for the reference of further improvement. The research was undertaken to assist logistics managers, researchers and transportation planners to define and comprehend the basic views of logistics and its various applications and the relationships between logistics and transportation.
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Ronald H Ballou, 2006, Logistics, Supply Chain and Transport Management,. This journal is concerned with the vital subject of business logistics and supply chain management, an area that can be essential to a firms competitive strategy and revenue generation. This management area has been described by many names, including physical distribution, materials management, transportation management, logistics, and supply chain management. Relevant business activities may include one or more of the following areas: transportation, inventory, order processing, purchasing, warehousing, materials handling, packaging, customer service standards, and production. The journal aims to present ideas, principles and techniques that are fundamental to good business logistics practice. It concentrates on important activities of management such as planning, organizing, and controlling, and also on a triangle of interrelated transportation, inventory, and location strategies, which are at the heart of good logistics planning and decision making.

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1.12 Significance of the study

The project is significant as it analyses the current system of logistics carried out by the company to fulfil the supply requirements of various regions of the country and tries to find the reasons for reduced efficiency in the system. It further suggests necessary improvements in the current techniques so that the efficiency can be increased which will be beneficial to the company as well as its customers.

1.13 Scope of Study

The study was conducted at the Fans Division of Crompton Greaves Ltd, Bethora Industrial Estate, Goa. It was done for a period of two months from October 17th to December 17th of 2011.

1.15 Objectives of Study

Primary objective To study the process of dispatches of finished goods from the manufacturing plant and the distribution to the branches present all over the country To identify any scope of improvement in the logistics and to suggest necessary steps to increase the efficiency of the system.

Secondary objective To study the logistics system in Goa marketing circle and to identify the problems faced by the dealers of the company.

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1.16 Research Methodology

1.16.1 Nature of Research: In this study the nature of research is descriptive. Descriptive study is a factfinding investigation with adequate interpretation. It is the simplest type of research. The work tries to analyse the Stock Sale Requirements of the company and find the stock keeping units with the largest demand in each regions of the company and the service factor of each branches of the company. It also analyses the distribution network of the company in Goa and the problem faced by the authorised dealers of Goa.

There are two approaches to research namely quantitative approach and qualitative approach. In the quantitative approach, the research is based on measurable quantities. In the qualitative approach, the research is based on subjective assessment of attitudes, opinions, and behaviours. Research in such situation is a function of researchers insight and impressions. Such an approach to researches generates results in non quantitative form. In this study, a quantitative research is done as qualitative research is not suitable for the situation, nature and objective of the project.

The research design deals with the sources of data collection and total plan of research. The sources of data collection are usually classified as primary sources and secondary sources.

Primary Sources: Survey method: The effectiveness of the distribution network was analysed using a questionnaire which was given to the authorised dealers of the company in the state of Goa. Discussion Method: Discussions were an important source of information for the study. The problems existing and the requirements needed were discussed with the Marketing manager and Head of the logistics department.
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 Telephonic Interview: The information regarding the problems faced by the branches of the company was collected from the respective branch managers through telephonic interviews.

Secondary Data Sources: Stock Sales Requirement data for the past 3 years. Data of the stocks of finished goods. Internet Website.

Limitations The research was limited within the Bethora plant of the company. The study of distribution network was restricted to the branches of the company.

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CHAPTER-2 2.1 Origin and Growth Of Fan Industry

The origin of the fan industry was found to be during the 1880s after the invention of electric fans. As a result of industrialization domestic electric fans made of brass blades were manufactured and sold in America. By the year 1920, the industries were able to produce steel in different shapes and thus brass was replaced by steel. In the 1950s, fans were manufactured in colours that were bright and eye catching. In the 1960s there was a great decrease in the production of fans due to the invention and growth of air conditioning. But again in 1998 the industry boosted up due to the invention of so called High volume low speed (HVLS) ceiling fans. Due to the skyrocketing costs of energy, HVLS commercial ceiling fans are used today to supplement HVAC systems in industrial and commercial settings, including warehouses, manufacturing facilities and malls, as HVLS fans help lower heating and cooling costs. During the 2000s, fan aesthetics have become a concern to fan buyers. The fan has become a part of everyday life in the Far East and the Asian countries. The basic design of electric air fans have not changed significantly since their beginning in 1890 to the present. Electric fans have been largely replaced by air conditioners in offices, but still they are a common household appliance.

2.2 Types Of Fans

Fans can be generally classified on the basis of the direction of flow of air as follows: 1. Axial Fans- The axial fans also called the axial flow fans in which the blades are designed in such a way that the air is forced to move parallel to the shaft of

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the fan about which the blades rotates. They includes table fans, ceiling fans, various types of fans used in automobiles and various electronic products. 2. Centrifugal Fans (radial) - Centrifugal fans blow air at right angles to the intake of the fan, and spin the air outwards to the outlet by using centrifugal force. They are mainly used for industrial purposes and are noisier than that of axial fans. 3. Cross flow Fans (tangential) - In this type of fans the main flow of air occurs across the impellor present in the fan and thus passes through the blades twice. Due to its shape, quite operation and high pressure coefficient these are widely used in the HVAC industry.

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2.3 Indian Fan Industry

The tropical type of climate existing in the Indian subcontinent has made fans a part of life of the Indian people. Even after the development of air conditioners the average Indian people were more comfortable with fans. A typical Indian house without a fan simply cannot be imagined. In todays changing environment, the fans have become an inevitable appliance for a comfortable living other than a symbol of luxury. Over the years it has changed from the hand held fans to the modern remote controlled multicolour designer fans fitted with exotic lights. The Indian fan Industry is very huge sector in which the unorganised sector accounts for about 55% and the rest 45% is the organised sector. Low technology manufacturing processes, quality norms, lower overheads and tax evasion methods are the major reasons for the growth of this unorganised sector by ensuring significant price differences. The local/unorganised brands are quite appealing to a large section of the price-conscious Indian consumers, for their lower price points. The Indian fan industry is a well established sector with a growing rate of 10% every year. The industry produces around 30 million units of fan every year. The market size in value terms of the fans category is quite large at around Rs.1500 Crores and it is the largest selling item in the brown goods category. Some of the major features of the Indian fan market are as follows: Unorganised sector accounts for more than 50 % The second hand market for fans is very big Huge production of fake products and trademark violations Technology included is very less Very low product differentiation between the competing brands
No major international companies have entered the market after liberalisation Rural market constitutes major part of the sales

The major segments present in the fan market of India are a) Ceiling fans- They form the major share of market with around 65%

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b) Table, Pedestal and Wall fans (TPW) They have a share of 20% c) Exhaust and fresh air fans- 10% d) Industrial fans- 5%

India has large number of manufacturing plants located across the country and producing world class fans. In fact the export of fans from India has doubled in the last few years and is a testimony to the quality and development of the Indian fan Industry. The distribution of fans in India is also well developed with over 1, 00,000 selling points for fans, across the country covering almost all important towns and cities. The fan industry has taken significant steps to ensure consumer satisfaction and leading brands not only provide good quality but also back this up with good after sales service

The organised sector is dominated by national brands that have built their brand image over a period of time, through sustained advertising and a good dealer network. The organised fan market of India is dominated by Crompton Greaves, Usha, Orient and Khaitan. These established companies are facing a great competition from the local players whose main tool is the price of their products while the organised players defend their position in the market using their brand equity. During the 1990s the whole market was in the hands of four players like Usha, Crompton Greaves and Khaitan. But local and regional players hit the markets with low priced fans which grabbed the market share from the established and organised players. All these players have well established manufacturing plants all over India which helps these companies to reap the benefits of the economies of scale.

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2.4 Company Profile

Crompton Greaves ltd is the largest private sector enterprise in India who are the pioneers in management and application of electrical energy. Crompton Greaves Ltd is an Avantha Group company which is one of India's leading business conglomerates. CG was established in 1937 in India; and, since then the Company has been a pioneer and has retained its leadership position in the management and application of electrical energy. It is mainly engaged in the designing, manufacturing and marketing of high technology electrical products and services related to power generation, transmission and distribution. The company as a whole is divided into three divisions or business groups: 1. Power systems- Transformers, Switch gears and Engineering products. 2. Industrial systems- Motors, Alternators and Rail Transportation. 3. Consumer products- Fans, Appliances, Pumps and Lightings As a consequence of globalisation the company acquired the foreign players like Pauwels, Ganz, Microsol, Sonomatra, MSE and PTS and thus at present CG has manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France, UK and US, in addition to more than twenty manufacturing locations in India, employing more than 8000 employees worldwide with diverse nationalities and cultures. The company has 22 manufacturing facilities all over India and by the acquisition of various foreign players the company is emerging into a global supplier for high quality electrical equipments.

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2.5 Crompton Greaves Ltd- Fan Division

Crompton Greaves fan business truly speaking is the companys flagship business, in a sense that fan is the Top of the mind recall product which people immediately associate with the name Crompton Greaves Ltd. The experience and expertise gleaned over for more than half a century, today the fan division is in the business of manufacturing and marketing a complete range of fans and appliances. It is not only a brand leader in India but also has a significant global presence in terms of marketing network and consumers, spanning 65 countries and 5 continents which includes countries like USA, Italy, South Africa, Ghana, Fiji, Singapore, Bahrain, UAE, Sri Lanka, UK, France, Oman, Sudan etc. An undisputed leader in the fan business, its leadership itself is distinguished in terms of: The widest and deepest sales and service network in India. An ever growing and wide range of products to meet every conceivable requirement. An undisputed price leadership. Its strong ability to conceive, design and develop the best in class. Leveraging the above strengths, the division has launched a series of product upgrades and is entering in new segments today- presently with more than 150 models of fans.

The company is having three fan manufacturing plants in India. Two of the units located at Bethora and Kundaim in the state of Goa, and one at Baddi in the state of Himachal Pradesh. Crompton Greaves Ltd was always able to defend its market position by their creative developments. Some of the achievements of the company are as follows:

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 In 1985, CGL was the first company to introduce an under light ceiling fan. In 1985, CGL introduced the four blade deco fans. In 1989, CGL became the first company to manufacture a million units under a single roof in India. In 1992, CGL introduced the mini pedestal fans. First company to produce fans that suits all pockets in all varieties. First company to introduce 12 inch wall fan in high speed. The only fan manufacturer in India awarded with Super brand.

Today the Bethora fan division of Crompton Greaves Ltd works with lean inventory rationalized manpower automated environment and above all clean factories and is awarded with the prestigious Quality Management Certificate as per ISO 9001:200 standards

2.5.1 Recent Developments Along with the traditional emphasis on quality, the new thrust is on achieving eye-grabbing, contemporary, decorative concepts. This entails increased use of composite materials. The net result is the fan that not only accentuates the unusual but also makes a bold fashion statement. For the young and upwardly mobile, it is more than a practical gadget. The usage of vibrant dual tone metallic colours and the deft, sinewy cuts of its blade design have elevated the old pankah to the level of a decoration for homes. 2.5.2 Customers Crompton Greaves has a large customer base, consisting of Indian Railways, Utility companies, Government and local bodies and large companies in public as well as private sectors. Thus it honestly tries to address the customer needs from all segments of the society from households to complex industrial sectors through its comprehensive range of products and services. Crompton Greaves fans cater to many diverse application group and consumers and it is the most preferred supplier of Government of India.

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2.5.3 Company Markets The company markets its products through four Regional Marketing Headquarters in the Northern Region, Eastern Region, Western Region, and Southern Region. Each regional headquarters looks after the marketing and sales of the products of all the business groups. Hence marketing and sales operates as a matrix structure through an interface of both the division and the region. While the division is the profit centre, the region is the cost centre. There are however a few businesses which manage their marketing and sales operations directly from the divisions and are not dependent on the regional marketing headquarters. The four regions operate in the applicable states and are also supported by branches which are as follows: Northern Region: Delhi, Ghaziabad, Faridabad, Lucknow, Jaipur, Jalandhar. Eastern Region: Kolkata, Guwahati, Patna, Ranchi, Cuttak. Western Region: Bhivandi, Kanjur, Pune, Ahmedabad, Indore, Nagpur, Raipur, Goa. Southern Region: Chennai, Madurai, Banglore, Secunderabad, Cochin.

2.5.4 International Markets Having achieved leadership in most of the product categories it is involved in International business to power its growth volumes. Over the years, Crompton Greaves fans have been exported to over 60 countries worldwide including the developed countries such as USA, UK, European Union, Australia and New Zealand. The company has received international certifications for most of its product groups in an ongoing effort to enhance acceptability to its products. The companys advantage of low production cost and high
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engineering quality makes its products an attractive choice and the company is increasingly considered as an ideal source of wide range of products.

2.6 SWOT Analysis Strength Market leader with 25% of market share( top manufacturer of fans in India) Pioneer in the introduction of fans. Very good brand image in the market. It is present in the list of 134 Super brands It has a very huge dealers network Very strong financial background Strong logistics system with more than 20 branches and marketing offices all over India Weakness Promotion is not done aggressively as compared to the competitors. Retailers are less compared to its competitors.

Opportunities Opening a new huge retail segments. Tapping a large percentage of unorganised sector Rural penetration

Threats Competitors are very modern and lean in promotion and other activities. Aggressive marketing is done by the competitors. Threats from unorganised sector. Growth of air condition industry.

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2.7 The current Distribution and Logistics system

The Crompton Greaves Ltd fans division in Bethora industrial estate of Goa is the largest producer of ceiling fans with a production capacity of 9000 fans a day. The company is having 21 branches which are situated in the four regions of the country. These branches also have the sales offices of the company and all these forms the distribution network of Crompton Greaves Ltd. Each region of the company is having regional manager and the branches are controlled by engineers in charge and operating persons who are responsible for finding the requirements of fans from the dealers and distributors of that respective region. The entire requirement of fans from the dealers and distributors of that region are collected and sent to the company. The company then prioritise the requirements on various factors and produces the products accordingly. The finished goods produced are transported to the respective company branches through a well developed logistics system. The products reaching the branches are stored in the ware houses available and are taken to the distributors and dealers so that they reach the customers at last.

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2.7.1 Problem faced by the Logistics department

Chart 1: All India SSR and Dispatch, 2009-10

Chart 2: All India SSR and Dispatch, 20010-11

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It is evident from these graphs that there exist a huge gap between the requirement of each branch and the finished goods dispatched to the respective branches. The data showed that for the last two years, the dispatched amount were not equal to the requirements. Even in the months of October, November and December where the demand is less, it was not able to equalise the demand and the dispatched amount.

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2.8 Product Profile

Crompton Greaves was an initiator of the Electric fan revolution that has swept the Indian sub continent. The fan divisions 70 years of experience has transformed the concept of fan from a need, to an object of grandeur. The entire range of fans can be broadly classified into domestic and industrial fans. 2.8.1 Domestic Fans The various types of Domestic fans are Ceiling fans- They include power and performance with safety and durability and provide both decorative as well as economy models. The various types of ceiling fans are Sub economy fans Standard fans Decorative fans Premium fans Luxury Under light fans

Table, Pedestal and Wall mounting fans- Table fans are easily portable and carry the air everywhere. Pedestal fans provide unique mobility and independence in every nook and corner of the house. Wall mounting fans are ideal substitutes where there is no provision for table fans and pedestal fans. Domestic Exhaust fans- These are present in both exhaust and fresh air modes and are available in economy and premium types.

Star rated fans- These are the fans that are have been rated 5 stars because of its low energy usage. These are energy efficient fans which are Bureau of Energy Efficiency (BEE) star rated.

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2.8.2 Industrial and Other Fans Industrial Fans- These are powerful and tested fans that suit the industrial environment. These products deliver round the clock, in highly demanding environment resulting in improved productivity & lowering of temperature & pollutants. Special Purpose Fans- These includes cabin fans and personal fans that have been created to cater the niche market segment.

Cooler products

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CHAPTER-3 Analysis and Interpretation The analysis has been conducted on the SSR for the years 2009-10, 2010-11, and first two quarters of 2011-12. The analysis was mainly focused on finding out the stock keeping units in each region and branch of the company which are having the lowest service factor. Also each region of the company and the branches with the average service factor has also been identified and analysed.

3.1 Stock keeping units (SKU) with the lowest service factor Table 1: Northern region SKU SKU ( Decreasing Order of demand) AURA PRM 1200 PEL-WOR AURA1200SSTDLX-WOR D`AIRNEW1200IVY-WOR AURAPRM1200CPR-WOR AURAPRM1200PWT-WOR AERO1200BRN-WOR AURA1200NEWWHT-WOR HBPLUS1200WHT-WOR Average Service factor (%) 60.6 28.2 32.3 31.8 43.2 37.6 32.5 42.4

The northern region of the company is one of the lowest serviced regions. The service factors for the SKUs in these regions are low as compared to other regions. It has been found that the demand of the branches of Northern region varies for the SKUs. Different models of the products are demanded by the branches at different times. This continuous variation in demand is the reason for the low service factor obtained for these SKUs.

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Table 2: Eastern Region SKU SKU ( Decreasing Order of demand) HS1400BRN-WOR AURAPRM1200PEL-WOR AURAPRM1200OPG-WOR HSDCPRM1200PEL-WOR HSDCPRM1200AGD-WOR ZPR1200OPW-WOR Average Service factor (%) 59.7 35.7 38.2 27.3 29.9 35.9

These SKUs are having very low service factors in the Eastern Region and the reason for this low service factor is due to the low demand for SKUs in these branches. These low demand SKUs are given less priority than the high demand SKUs and thus the service factor is low.

Table 3: Western Region SKU SKU ( Decreasing Order of demand) HSDCR1200PEL-WOR AURAPRM1200PWT-WOR OLGA1200WHT-WOR AURA1200BRNDLX-WOR AURA PRM 1200 PEL-WOR HSDCPRM1200PWT-WOR Average Service factor (%) 37.6 38.4 46.1 57.8 78.5 48.3

In the western region the SKUs are given an average service factor. The demand for these SKUs is more than that of Northern and Eastern regions, so the service obtained is also more.

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Table 4: Southern Region SKU

SKU ( Decreasing Order of demand) HSDCPRM1200AGD-WOR HS1400BRN-WOR HSDCR1200PEL-WOR HB 1200 WHT WOR D`AIRNEW1200IVY-WOR AURAPRM1200PEL-WOR

Average Service factor (%) 48.2 59.6 50.3 78.9 57.5 62.3

The southern region is the largest market of the plant and thus the demand made by the branches of Southern region is very huge. The service factor provided is also very high as compared to other regions. The main reason behind the high service factor is due to the stability in demand for SKUs of the branches.

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3.2 Regions and the service factors

Table 5: Northern Region Service factor NR branches Average service factor (%) Chart 3 Delhi 59.6 Ghaziabad Faridabad 45.2 50.8 Lucknow 47.6 Jaipur 64.2 Jalandhar 48.5

Among the six branches of the Northern Region, Jaipur has the highest service factor. The lowest service factor is with Ghaziabad, which gets the lowest service among the entire branches of the company. As a whole the branches of the northern region is obtained very low service as they are mainly small branches and the demand varies continuously.

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Table 6: Eastern Region Service factors

ER branches Average service factor (%)

Kolkata 76.5

Guwahati 60.1

Patna 65.5

Ranchi 61.1

Cuttack 63.2

Chart 4

The eastern region branches are obtained a considerable higher service as compared to the northern region. Even though these branches are the farthest from the plant, the logistics department of the company give more importance to these branches by giving priorities to these branches. Kolkata obtains the highest service factor, while Guwahati gets the least service.

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Table 7: Western Region Service factor

WR branches Average service factor (%) Chart 5

Bhivandi Kanjur 57.3 68.3

Pune 78.6

Indore 70.1

Ahmadabad Nagpur 73.8 75.1

Raipur 62.3

Goa 99.6

The western region is having the largest number of branches which is very close to the manufacturing plant. This region includes Goa which obtains the largest service among all branches since the plant is situated there. Bhivandi is the branch with the lowest service.

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Table 8: Southern Region Service factor

SR Branches Average service factor (%)

Chennai 78.7

Madurai 76.2

Bangalore 72.7

Secunderabad 79.5

Cochin 80.6

Chart 6

Southern region is the largest market of the plant with 5 large branches. All these branches are obtaining a comparatively high serve factor as compare to the other branches of the company. The region includes Cochin with the highest service and Bangalore is obtained the lowest service.

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Table showing the most sold fan in the shop

Name of the manufacturing company Opinions Percentage

CG 8 67

Bajaj 2 17

Usha 0 0

Hawells 1 8

Orient 1 8

Chart showing the most sold fan in the shop

Interpretation Among the dealers 67% of them were selling CG fans the most, 17% were selling Bajaj fans and 8% of them were selling Hawells and another 8% sells Orient fans the most.

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Table showing the average number of fans sold in a week

Average No of CG fans sold

0-2

2-5

5-8

8-10

More than 10 1 8

Opinions Percentage

0 0

2 17

5 42

4 33

Chart showing the average number of fans sold in a week

Interpretation Among the dealers, 42% of them sell 5-8 CG fans a week, 33% of them sells 8-10 CG fans a week, 17% of them sells 2-5 fans a week and 8% of them sells more than 10 fans a week.

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Table showing the frequency of sending the stock

Time of sending the stock Opinion Percentage

Weekly 2 17

Twice a week 7 58

Thrice a week 3 25

Interpretation Among the dealers, 58% of them send their requirements to the company twice a week, 25% of them send the requirements thrice a week and 17% of them send the requirement weekly.

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Table showing the time required to get the stock from the company

Time to get the stock Opinion Percentage

1 week 7 58

10 days 3 25

15 days 2 17

More than 15 days 0 0

Chart showing the time required to get the stock from the company

Interpretation Among the dealers, 58% of the get the stock within one week, 25% of them get the stock within 10 days after the requirement is sent, 17% of them within 15days after the requirement has sent.

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Table showing the fulfilment of requirements in a single load

Requirement meeting in single load Opinion Percentage

Never 0 0

Rarely 5 41

Sometimes 3 25

Mostly 2 17

Always 2 17

Chart showing the fulfilment of requirements in a single load

Interpretation Among the dealers, 41% of them able to meet the requirements rarely, 25% of them meet the requirements sometimes, 17% of them mostly meet the requirements and another 17% of them always meet the requirements in a single load.

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Table showing the number of loads required to meet the requirements completely

No of loads required Opinion Percentage

1-2 3 25

2-3 6 50

3-4 3 25

More than 4 0 0

Chart showing the number of loads required to meet the requirements completely

Interpretation Among the dealers, 50% of them meet the requirements in 2-3 loads, 25% of them needs 3-4 loads to meet the requirements and the rest 25% of them needs 1-2 loads.

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Table showing the type of carrier used for transportation

Type of Carrier Opinion Percentage

Cargo 5 42

Part load 6 50

FTL 1 8

Container 0 0

Chart showing the type of carrier used for transportation

Interpretation Among the dealers, 50% of them get the stock in part load carriers, 42% of them get the stock in cargo carriers and the rest 8% get the stock in containers.

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Table showing the problems due to unavailability

Problems due to unavailability Opinion Percentage

Never 0 0

Rarely 2 16

Sometimes 5 42

Mostly 5 42

Always 0 0

Chart showing the problems due to unavailability

Interpretation Among the dealers, 42% of them mostly find problems in meeting the demands of the customers, another 42% of them sometimes find the problem, and the remaining 16% of them rarely find the problem in meeting the demands of the customers.

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Table showing the loosing of customers due to unavailability

Losing customers due to unavailability Opinion Percentage

Yes

No

8 67

4 33

Chart showing the loosing of customers due to unavailability

Interpretation Among the dealers, 67% of them are losing the customers due to unavailability of products in the first load itself and the rest 33% are not losing any customers.

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Table showing the presence of damage of products due to transportation

Presence of damage Opinion Percentage

Very frequently 0 0

Frequently

Occasionally

Never

0 0

2 17

10 83

Chart showing the presence of damage of products due to transportation

Interpretation Among the dealers, 83% of them never found any damage in the products due to transportation and the rest 17% of them occasionally finds damage in the final good due to transportation.

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Table showing the rate of current logistics system

Current logistics & distribution system Opinion Percentage

Very poor

Poor

Fair

Good

Very good 0 0

0 0

6 50

5 42

1 8

Chart showing the rate of current logistics system

Interpretation Among the dealers, 50% of them have the opinion that the current logistics system is poor, 42% of them say the system is fair and the rest 8% are in the opinion that the system is good.

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Table showing the need for improvement in the current system

Need for improvement Opinion Percentage

Strongly agree 2 17

Agree

Moderate

Disagree

Strongly disagree 0 0

6 50

4 33

0 0

Chart showing the need for improvement in the current system

Interpretation Among the dealers, 50% of them agree to the need for an improvement in the system, 33% of them moderately agree to a need for improvement and the rest 17% of them strongly agree to the need for an improvement in the current logistics system.
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CHAPTER-4
Findings and Suggestions 4.1 Findings The analysis of the data in the form of Stock sale requirement (SSR) of the last three years results in the following findings: The main reason behind the problem faced by the logistics department of the firm is due to the huge variety of models produced by the company. The continuous change in demand for type of SKU is the cause for the gap between the requirement and the dispatched amount. The low service factor for the SKUs in the northern and eastern regions is due to the very small and continuous variation in demand for these SKUs. The eastern branches are the farthest from the company and so priority is given to meet these branch requirements. The largest market of the company is the southern region having a huge and constant demand, and thus the service provided is also high compared to other regions.

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4.2 Suggestions The major suggestions that can be given are as follows: The SKUs that are having more demand but with lower service factor in each region should be given more importance. The current system of distribution can be replaced by a milk run model of distribution, combining the small branches together and meeting their requirements from a warehouse common to these branches. The small branches of northern region having very low service factor should be also given priority. The distribution and production processes should be combined in such a way that, the demand for the farthest branches should be produced first. The demand pattern of the branches for the SKUs must be identified and analysed so that the gap can be reduced to a great extend.

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Conclusion From the study, the researcher was able to understand about the different aspects of outbound logistics and the various activities involved in the logistics department. The study also helped the researcher in understanding the various factors which affects the smooth flow of finished goods through the distribution network. Outbound logistics is one of the major parts of the manufacturing industry integrating the demand of the customers and the production process. The service factor for SKUs is one of the major challenges faced by the logistics department. By understanding the demand pattern and prioritising the SKUs the service factor can be improved to a great extend.

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Bibliography

http://www.avanthagroup.com http://www.bestlogisticsguide.com http://www.businessdictionary.com

Jr. Glaskowsky; Nicholas A, Business Logistics Ballou; Ronald H, Business Logistics Management F. Wood; Donald F, Contemporary Logistics

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Appendix
Questionnaire for Fan Dealers of Crompton Greaves Ltd

Name of the Dealer: Address City State Telephone : : : :

Date:

1) Which is the largest selling fan in your shop? a) Bajaj b) CG c) Usha d) Hawells

e) Orient

2) What is the average number of CG fans sold in a week? a) 2-5 b) 5-8 c) 8-10 d) More than 10 3) How often is the requirement sent to the company? a) Weekly b) Twice a week c) Thrice a week

4)

How much time it takes to get the stock from the company? a) 1 week b) 10 days c)15 days d) More than 15 days

5) Is the complete requirement met by the company in a single load a) Never b) Rarely c) Sometimes d) Mostly 6) How many loads are needed to meet the requirements completely a) 1-2 b) 2-3 c) 3-4 d) More than 4 7) How are the products transported to the shop from the company a) Cargo b) Taurus c) FTL d) Container

e) Always

8) Do you have any problem in meeting the demands of the customer a) Never b) Rarely c) Sometimes d) Mostly e) Always

9) Are you losing customers due to unavailability of products? 63

a) Yes

b) No

10) Presence of any damage in the products due to transportation? a) Very frequently b) Frequently c) Occasionally d) Never

11) How do you rate the logistics and distribution system of the company? a) Very poor b) Poor c) Fair d) Good e) Very good 12) Opinion about improvement in the current logistics and distribution system a) Strongly agree b) Agree c) Moderate d) Disagree e) Strongly disagree

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