PROJECT REPORT ON LOGISTIC MANAGEMENT by Sanjay Gupta

A PROJECT REPORT ON “LOGISTIC MANAGEMENT” (JMD OILS PVT.LTD)

TABLE OF CONTENT SR NO.

PARTICULAR

PAGE NO.

Preface

Acknowledgement

Objective of the study

Methodology

Introduction of the oil industry

Introduction of different oils

Manufacturing at JMD OILS PVT.LTD.

Introduction of JMD OILS PVT.LTD.

History About JMD OILS PVT.LTD.

10.

Hierarchy of JMD OILS PVT.LTD.

11.

Introduction of Logistics Management

12.

Functions of Logistics Management

13.

Import / purchase Procedures

14. 15. 16.

Product mix of JMD OILS PVT.LTD. Transportation management Outbound logistic through the train

44 48 49

17.

Transportation at JMD OILS PVT.LTD.

18.

Distribution network of company

19.

Inbound logistic

20.

Outbound logistic

21.

S.W.O.T Analysis

22.

Recommendation

20.

Conclusion

21.

Bibliography

PREFACE India is growing very fast and in this era if we want to get success in business or industry then we are required practical and theoretical knowledge, skills and ability to implement the knowledge. Success is not result of unstructured effort that is implemented by the individual, success need much planned step to reach the level of the success. one rule to get success is that self-motivation, emerge a fire in your soul and This fire is none other than that of yearning to learn, of learning to explore & of exploring the unexplored. This is one of the Management institute and therefore they are trying to give some practical experience by giving a two months summer internship after and of the year that was included in our Post Graduate Diploma in Management curriculum. I have prepared a project report as per my knowledge concern. This report reflection of what I was observed and come to during my training in this industry. I have tried my best to make this project report excellent. I hope that this report will satisfy the entire subject requirement.

ACKNOWLEDGEMENT In my summer training at JMD OILS PVT.LTD.I got a very pleasant experience of practically working in an organization... So it gives us immense pleasure to be able to express our gratitude to one and all who have contributed to the successful completion of our project with a great learning. First and foremost, I would like to thank our project guide, Mr. XYZ. He gave me an in-depth knowledge of the working of the JMD Company and enhanced our understanding on its various aspects. His invaluable and significant guidelines improved our outlook and contributed in making our project a real learning experience. He also encouraged us to put in our best efforts and bring out the best of our abilities. I would also like to thank, the Asst. Manager, Mr. XYZ who helped me out at each stage of project and I am also grateful to the entire staff of JMD OILS PVT LTD for their Co-operation and support. This acknowledgement would remain incomplete without mentioning the role of our college faculty in guiding. I thank our director Prof XYZ for giving us a platform through which I got the opportunity of a knowledgeable training experience.

OBJECTIVE OF THE STUDY The logistics Management is very useful for the any type of the field but what will be the benefit out of the project which we are going to know, the study conducted for this following object….

 To know how the oils company works

 To know about the different type of the company product

 To know the company Logistic Process

 To know about the clearing process that included in the logistic

METHODOLOGY

 By observing staff as well as interacting with them and viewing the documents and past records of the company and by using Questionnaire

 Secondary data collect from the following sources

method.

•

Magazine

•

Newspaper

•

Management

•

Web Sites

•

Map

books

INDIAN EDIBLE OIL INDUSTRY IN INDIA Indian companies are well performing in this trend. The demand of the edible oil is increased day by day because of the population of the India. India is world’s third largest edible oil economy, after China and US. India’s annual consumption is around 10 million tones and China’s 14.5 million tones. per capita oil consumption in India is only 10.6 kg/annum which is low compared to 12.5 kg/annum in China, 20.8 kg/annum in Japan, 21.3 kg/annum in Brazil and 48.0 kg/annum in USA. India is also a leading producer of oilseeds, contributing 8-10% of world oilseed production. India is estimated to account for around 6% of the world’s production of edible oils. Though, it has the largest cultivated area under oilseeds in the world. India is the fourth largest oilseed producing country in the world, next only to USA, China and Brazil. Indian share in world production of oilseeds has been around 8-10%. In India, oilseeds are grown in an area of nearly 27 million hectares across the length and breadth of the country. Depending on the period of cultivation, the oilseeds are classified as 'Kharif Crop' and 'Rabi Crop'. The Kharif Crop that is dependent on the Monsoon is harvested

around October-November each year. On the other hand, the Rabi Crop is harvested around March-April each year. Edible oil processing consists of three operations: crushing and expelling solvent extraction and oil refining. In many countries, these three separate processing operations are conducted by one vertically integrated plant. In India, however, only a small share of oilseed production undergoes solvent extraction and oil refining. At the beginning of the 20 th century the vegetable oils industry was based on some 500,000 bullock-driven gains producing about 800,000 tones of oils. Instead, India’s oilseeds processing sector is made up of the three groups.  Ghanis  Solvent extractors  Oil refiners

STATUS OF THE VEGETABLE OIL INDUSTRY Fig: 1

India has lots of Oil Company and the utilization of the company is increasing day by day. The oil company is now big contributor in our economy. Oilseeds crushing units include crushing units in the small-scale sector as also in the organized sector. The capacity utilization generally ranges from an average of 10% for the gains (small scale sector) to around 30% in case of the expellers in the organized sector.

The oil industry has capacity of production in the different type of oils. This is the total capacity to generate the oil in India.

Fig: 2

INTRODUCTION OF THE DIFFERENT OILS

Every year on an average 125 million tons of vegetable oil is produced and out of that 70% is contributed by four types of crops that are SOYA, PALM, MUSTARD, VANASPATI AND SUNFLOWER.

1. PALM OIL

The oil industry is growing very rapidly. Palm oil is derived from the palm trees. Palm oil is extracted from the pulp of the oil palm. Palm oil is composed of fatty acids, esterifies with glycerol just like any ordinary fat. It is high in saturated fatty acids. Palm oil gives its name to the 16-carbon saturated fatty acid palm tic acid. Monounsaturated oleic acid is also a constituent of palm oil. Unrefined palm oil is a large natural source of tocotrienol part of the vitamin E family. More than 50% of palm oil comes from Malaysia where two thirds of the cultivated land is under oil palm, 28% in Indonesia, and 3% in Thailand and in Africa 8% in Nigeria and remaining from other counties. Palm oil is mostly used for the cooking. Palm oil also has different use…..

 Soaps  Washing powders  Personal care products  Many processed foods contain palm oil as an ingredient

2. SOYA OIL

Now days the uses of the soya oil is increased in our country and also it’s mostly consumed by the following world’s country for e.g. About 50% of soybeans come from the USA, 20% from Brazil, 11% from Argentina, 9% from China, and 4% from India. More than 55 million hectares are used in the world for its cultivation. Soybean are comes in two colors one is black and other is yellow. The last decades the production of the soybean is increased in Indian and also the price of the soybean are increased by 56% so you can imagine that the demand of the soybean is very high in the last decades.

3. MUSTARD OIL

Mustard oil has a strong sinus-irritating aroma, like that of horseradish or wasabi, a hot nutty taste, and is often used for cooking in Uttar Pradesh, Gujarat, Orissa, Bengal, Bihar, Jharkhand, Chhattisgarh, Assam and other areas of India and Bangladesh. In north India, it is mainly used in frying fritters. In Bengal, it is the traditionally preferred oil for cooking, although nowadays neutral-flavored oils like sunflower oil are also extensively used. The oil makes up about 30% of the mustard seeds. It can be produced from black mustard, brown Indian mustard, and white mustard.

Mustard oil has about 60% monounsaturated fatty acids of which 42% erucic acid and 12% oleic acid, it has 21% polyunsaturated of which 6% is the omega-3 alpha-linoleic acid and 15% omega-6 linoleic acid and it has 12% saturated fats.

4. SUNFLOWER OIL

Sunflower oil is the non-volatile oil expressed from sunflower seeds. Sunflower oil is commonly used in food as frying oil, and in cosmetic formulations as an emollient. There are several types of sunflower oils produced, such as high linoleic, high oleic and mid oleic. Mid linoleic sunflower oil typically has at least 69% linoleic acid. High oleic sunflower oil has at least 82% oleic acid. Variation in unsaturated fatty acids profile is strongly influenced by both genetics and climate. In the last decade high stearic sunflower lines have been developed in Spain to avoid the use of hydrogenated vegetable oils in food industry.

Restaurants and food manufacturers are becoming aware of the health benefits of sunflower oil. The oil can be used in conditions with extremely high cooking temperatures. It may also help food stay fresher and healthier for longer periods of time. Food manufacturers are starting to use sunflower oil in an effort to lower the levels of Tran’s fat in mass produced foods. A number of common snack foods currently contain sunflower oil, including New York Fries French fries, Majans BHUJA Mix healthy snacks, the Sri Lankan style Bombay Mix - Rani Mix, Kettle Chips, Sun Chips, Sunflower Chips, Ruffles, Walkers and Lay's potato chips; the recipe of the latter was modified in late 2006 in order to include the oil.

5. COTTON SEED OIL

Cotton seed oil is very useful now days and the consumption of the oil is increasing by 150% by the last two decade. It would seem aside from the legitimate concern over pesticides in cotton seed oil, that the limited amount of cotton seed oil in content has a 2:1 ratio of polyunsaturated to saturated fatty acids. Its fatty acid profile generally consists of 70% unsaturated fatty acids including 18% monounsaturated and 52% polyunsaturated and 26% saturated. The pesticide use around cotton is the biggest concern overall. Impurity, in all things we eat, is certainly a concern. As cooking oil, it is used for frying in commercial cooking. It is often a primary ingredient in shortening and margarine. Cottonseed oil is one of the most common oils in commercial frying in the production of potato and corn chips.  Cottonseed oil is used as cocoa butter substitutes after hydrogenation and fractionation.  Hydrogenated cottonseed oil is used in frozen desserts to replace more expensive butter fat.

6. VANASPATI OIL “Vanspati” a term used to denote a partially hydrogenated edible oil mixture. Vanspati has an important role in our edible oil economy. It has around 10% share of the edible oil market. Vanaspati is also Indian/South Asian slang for Vanaspati ghee, fully or partially hydrogenated vegetable cooking oil, often used as a cheaper substitute for ghee. In India, Vanaspati ghee is usually made from palm oil. Hydrogenation is performed using a catalyst known as "supported

nickel catalyst", in reactors at low-medium pressure. In Pakistan, Vanaspati is spelled "banaspati".

PRODUCTION AND CONSUMPTION OF THE OIL The production of the oil is produced in many state of the India and the production is every year growing. India is fortunate in having a wide range of oilseeds crops grown in its different agro climatic zones. Groundnut, mustard, sesame, sunflower, linseed, castor are the major traditionally cultivated oilseeds. Soya bean and Sunflower have also assumed importance in recent years. Coconut is most important amongst the plantation crops. Efforts are being made to grow palm oil in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar Islands. Among the non-conventional oils and cottonseed oils are the most important. Fig: 3

MANUFACTURING AT JMD OILS PVT.LTD

JMD believes in delivering consistent value to the consumer by investing in technologies that provide high quality solutions in keeping with this philosophy, consumer interests are the basis for our selection of production processes this has resulted in state of the art highly reliable process equipments and facilities all of those operate under accurate and sophisticated computer based control system and are sourced from world leaders in their fields. At JMD emphasis is placed on automating all possible aspects of our operating using current generation advances in electronics communication and information technology our Navision

software integrates all business process in to unify whole.

This system yields a quantum jump in productivity and efficiency of information flash in all aspects of production, marketing, finance, services transportation and bulk & consumer pack projects. At JMD we also have a large consumer pack division reach ere our different products are packed by the latest state of art technology.

REFINING PROCESS OF CRUDE OIL NEUTRALIZATION Here the pre degummed oils or oils with very low phosphate contents are saponified with Caustic Soda and the Sodium Soap is separated. The oil is initially heated to the optimum process temperature. In order to condition the non-hydra table phosphatides, a small quantity of concentrated phosphoric acid is added and intensively mixed with oil. Following a brief reaction time, diluted caustic soda is added in order to neutralize the free fatty acid and the phosphoric acid. After mixing with the oil, the mixture is either conveyed directly to the first separator or it passes through a further reaction tank. The latter is recommended only for oils with a relatively high phosphatide content in the neutral oil is still too high for the subsequent process stages, and it must therefore be reduced further by one or two washings. For this purpose hot water is added to the oil, intensively mixed and the soapy wash water is removed in a further separator. In

general one wash stage is adequate. A second washing is only necessary if very low residual soap contents are required.

PHYSICAL REFINING Remove gums in oil with special degumming method. FFA in oil is removed by steam. Features:  High oil refining rate, less oil loss  No waste water discharged;  More FFA distilled out;  Especially suitable for oils of high acid value, and low gum content;

CHEMICAL REFINING Neutralize FFA in the oil with alkali. The gum and soap produced are centrifuges. Features:  Less requirements to crude oils;  The finished oil is more consistent in quality;  Less bleaching earth used compared with physical refining;

BLEACHING Add bleaching earth into the degummed oil. Under the vacuum state, the oil is continuously mixed with bleaching earth in the continuous Bleacher, where main part of color

bodies as well as oxidizing materials in the oil are absorbed by the bleaching earth. After continuous Bleacher, the oil/clay mixture is passed through Leaf Filters where the spent earth is removed together with the precipitated materials from degumming. The oil then passes through one of two alternatively working safety filters before entering the next section.

DEODORIZATION The incoming oil is pre-heated by deodorized oil in the deaerating Economizer before entering the packed column type Deaerator. The dearator oil is further heated by hot deodorized oil in the Deodorizing Economizer and finally by high-pressure steam under vacuum and steam agitation in the vacuum heater. Some of the free fatty acids are flashed off in the heater as the oil temperature increases. The fully heated oil enters the Double Shell Packed Column where it is distributed into thin film layers as it flows down through the structured packing. The oil is intensively agitated by steam rising counter currently from the structured packing. The oil is evaporated and as a result, free fatty acids and other volatile impurities in the oil are evaporated and removed with the steam. The stripped oil drains into the Deodorizer where it flows through a series of vertically stacked compartments (trays) agitated by steam. The prolonged thermal action (heat bleaching) breaks down oil’s color. Also the amount of free fatty acids is reduced to an absolute minimum. The retention time in the Deodorizer is adjustable. The heat-bleached oil is pre-cooled in the Deodorizing Economizer and then mixed with anti oxidant before entering the packed column type Post Deodorizer. Residual flavor altering compounds and water from the anti-oxidant solution are vaporized and removed. The oil is

cooled to storage temperature in the deaerating Economizer and Product Cooler and then sent to storage via one of the alternating Product Filters. Fatty acids and other materials evaporated from the oil are condensed by contact with recycled and cooled distillate in the Scrubber and collected in the distillate.

OTHER PRODUCTION SUB-UNITS Other than production of edible oil, the company also follows Backward Integration. Here the company does not buy the packaging materials from outside like cartons, bottles, plastic cans and tin boxes instead they produce.

For production of 1 LITER pouches, polythene rolls are purchased from outside and through automated machineries; pouches are automatically made and filled with right amount of oil. These pouches have high strength and can bear the outside pressure of up to 120 kegs. They have capacity of 18 pouches per minute per machine and they have 12 machines so 18X1X12X60= 12960 pouches per hour.

For production of 1 LITER LDP bottles, raw material, known as “Priforms”, are purchased from outside. These are then processed to make bottles inside the plant. These bottles are then put on a conveyer belt, which take the bottles to automatic oil filling machines in which oil is automatically filled to a desired level.

Machine has a capacity of 1 bottle in 6 seconds and they have 3 machines of bottle manufacturing so they have capacity to produce 1 bottle in 2 second average.

The consumption of the oil is different from the state and area wise. India is a vast country of several of its regions has developed specific preference for certain oils largely depending upon the oils available in the region. For ex: - people in the South and West prefer groundnut oil while those in the East and North use mustard oil. Fig: 4

The demand of the oil is increasing in the market. The reason behind the high production and high demand is increasing population in the India and increasing the hotels in India and due

to some government Policy changes in the import policy it increasing the import of the oil and gave rise in the oil Production.

AVILABLE OIL AT All DOMESTIC SOURCES

Fig: 5

India is large producer of the oil and demand of the edible oil is increasing day by day but what about the viability of the oil in the domestic market. You can see the demand table in that the demand increasing but proportionally oil is not increasing in the market that was the one of the

reason of the price rise in the market. Here the demand in the year 08-09 is 123 but in the market there is only 93.45% oil is available. So ultimately it’s increasing the price of the oil.

INTRODUCTION TO JMD OILS PVT.LTD.

DIRECTOR’S MESSAGE

JMD Oils is a fully integrated company with the ability and infrastructure to cater to the technological needs of the growing industry. The company enjoys goodwill due to the quality of its products and services. It is our Endeavour to constantly improve our products to cater to our growing customer family. “We believe in maintaining excellence in the quality of our products, and excellent relationship with our suppliers and customers."

Krishan Kumar Dhingra Managing Director

HISTORY OF JMD OILS PVT.LTD The foundation of JMD group was laid by Late Sh. J R Dhingra, a social activist and a religious and pious person. With his dynamic approach, guidance and vision, the group, which was started with a Grocery shop, has achieved astounding heights. Sh. J R Dhingra passed away in the year 2001 but his teachings, inspirations and values have been well carried by his four sons namely Gulshan Kumar, Krishan Kumar, Naresh Kumar and Sanjay Kumar. They further fragmented the JMD tree, planted by their father and expanded, diversified and consolidated their position by working and living jointly as a close fist. JMD Group started the business of edible oils in the year 1987 as a distribution unit. The promoters put their best efforts, vision and acumen in carrying out the business. Thereafter they kept on adding multinationals and reputed companies/brands who have shown their eagerness to

be associated with the group and promote their brand/business e.g. “ Vital”- (SM Dyechem), “Dalda Refined Oil” -(Hindustan Lever Limited), “Sun drop, Crystal” - (Agro Tech Limited), “Sohna”- (Markfed), “Saffola”- (Marico Industries Limited). Meanwhile the group diversified into the business of manufacturing and marketing of Dairy products and took franchise of “INDANA” brand in the year 1997. They took on lease the dairy plant of Foremost Industries (I) Ltd (Owner of Indana brand) situated at Saharanpur. However in view of a high operational cost, being old plant, the promoters discontinued the operation of the said plant and outsourced the manufacturing the dairy operations. Over a period of time, the group established its own market and presence in the business of edible oils and dairy products. It has been making supplies to more than 7000 retail outlets, Canteen Stores Departments (CSD), multinationals, five stars hotels, restaurants, fast food centers, confectioneries manufacturers etc. It had been outsourcing the manufacturing/refining of edible oils and dairy products from outside jobbers. However at times there been a pressure in regard to the quality and regularity of operations which was dependent upon the whims of the jobbers. As a process of backward integration the group took over a dairy plant in Dist. Ballabhgarh (Haryana) in the year 2003. The said plant had milk processing capacity of laky later per day. After takeover, the promoters took the first step to reduce operational/running cost and incurred huge capital expenditure. Thereafter they increased the milk processing capacity to 3 laky liters per day. Meanwhile the company has also leased out its packing facilities for packing of fresh milk under the brand of “Amul” catering to Delhi. The promoters put their best to convert a loss making venture to a profitable enterprise. In the year 2004, the group diversified and set up a plant for packaged drinking water and aerated drinks under the brand name of ‘H2GO’.Over a short period of two years the brand has been well appreciated and well seen in the market. It has acquired a high position in the market. After settling the market and the production of dairy and packaged water, the group conceived an idea to go for backward integration in edible oils. It decided to go for establishing an edible oil refinery. Since more than 50 % of edible oils consumption is met out of imports, the

group decided to establish a plant near Sea Port. Hence the group decided to set up a plant in KANDLA, Dist Gandhidham, and Gujarat. Accordingly it set up a plant with capacity of 800 TPD. The plant has been put to operation in the year 2005. Over a period of time the group has been interacting with a numerous parties/customers comprising of multinationals, five star hotels, restaurants, fast food centers, retailers, wholesale markets and direct consumers etc. Its products being consumer products have a name in the household. Whereas there has been a boom in real estate business. The group decided to operate as per the time and market environment. After making a thorough study and research the group diversified and entered into the business of Real Estate, housing project under the brand name of ‘JTPL’. The integrity and reputation of the promoters have paid rich dividends and housing projects have begun with flying colors. We will be number 1 in food business in the local market and a preferred supplier in national market. We will achieve being the world class in everything we do. Everything we say and do is embodied in a clearly drafted set of values Total quality and integrity. The Quality of product and systems has transparency in dealing with both internal and external customers. Long term focus Entrepreneurial management: All team members display ownership attitude and interest in performing their responsibility. Customer focus Speed and quality of products, response and action are Strong believes in feedback mechanism from customers, suppliers and associates. Cost focus Lowest cost product with best of quality standard.

The wind may blow from any direction, but the direction in which you go depends on how you set the sails…

CONSUMER CENTRIC All innovations and every improvement they undertake keeping in mind the consumer who is the pivot point of their business initiatives. Their moves are consumer-centric and customer driven.

QUALITY COMMITMENT

Quality is the core fabric of our business activities. It holds together all our activities with the final goal of providing our consumers the benefits they expect from our brands at the most affordable prices. In fact, cost, quality and speed to reach our products to the consumers are

the prime theme of our business house. We establish exact standards to define acceptability of material inputs and end products. These standards are strictly met via exclusive dealings with vendors and service providers with proven capabilities to meet our stringent expectations. All of JMDs manufacturing / refining sites feature latest and most sophisticated quality control and quality assurance laboratories and in process testing facilities in keeping with current industry norms.

These are managed by highly proficient self motivated and committed quality vigilance teams who ensure that stated quality goal are regularly adhered to Quality programmers at our principal manufacturing and refining unit confirm to ISO 9002 code. This have been evaluated and validated by independent accreditation agencies.

JMD’s oil refining site at BHIMASAR – KANDLA, Kutch has further adopted HACCP (Hazard analysis and critical control point) program since march-2005 under this program sensitive ingredients, critical process control points and related human factors are monitored on a continuous basis to eliminate hearth risk and confirm acceptable product quality. JMD’s consumer feedback cell continuously monitors and takes corrective actions as required to reduce customer complaints. We believe in the principal anything that does not meet customer requirements is called defect

COMMITMENT TO QUALITY REAFFIRMED The year was 2005 JMD Oils Pvt. Ltd. Was established as part of JMD group one of the largest and most diversified industrial group in India. At the time of its inception, the new company was born of a deep commitment to processing and refining the finest edible oil and fast in the industry. This company now has one of the largest edible refining facility with 400 MT soybean processing, 400 MT Palm Oil Processing, 400MTD PALM OIL Fractionation plant and

200MTD Hydrogenation plant in one single location tragically located in the state of Gujarat in India at about 35km from the all seasons port – KANDLA port in the Kutch district of Gujarat. This location with an environment that stimulates business growth – the company is ideally positioned to eater to market in most of the states in northern India like Punjab, Rajasthan, Uttar Pradesh, Himachal Pradesh, and Jammu & Kashmir etc.

The company has been inspired to reach new heights and create a vision of being a market leader in its chosen field, through a portfolio of brands that are quite simply world class In pursuit of achieving excellence in creating brands of the almost quality, JMD Oils have implemented ISO 9002 Quality system. As a demonstration of the company commented to total quality, JMD Oils have implemented HACCP (Hazard Analysis and critical control point) system which Cohen applied to any food production products, assures the safety and quality of the product.

COMPANY’S MISSION To provide continuous value through their products that will add verve to their customers’ life by making goods that are innovative, qualitatively par excellence and capable of providing an amazing level of customer satisfaction. Helping their customers get more out of life!

COMPANY’S VISION

They keep their vision targeted at their mission and work with great passion in achieving their prime objective of giving the customer more of life! To achieve their aim, they are dedicated to continuously innovating in technological inputs, service levels, creative marketing, pricing and cost efficiency.

CULTURE OF COMPANY 

Openness and flexibility in working style.



Open door policy means senior executives are approachable at any time i.e. walk-the talk approach

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Lot of freedom and autonomy in work.

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Congenial environment for young professional to experiment new ideas.

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Positive and purposeful interaction at all level.

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Easy accessibility of information. Free flow of communication.

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Result oriented attitude is the order of the day.

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Employee growth is performance based.

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Environment of Continuous Learning

COMPANY ETHICS

They believe in the highest standards of corporate ethics and uncompromising integrity and dream to build a business that is sustainable, profitable and will create long-term value for their consumers and partners.

COMPANY PROFILE

Name of the company:

JMD Oils Pvt. Ltd.

Constitution

A Closely held Private Limited Company

Name of Directors

Sh. Krishan Dhingra Sh. Naresh Dhingra Sh. Ramji Lal Sharma

Nature of Business

Manufacturing of edible oils and Ghee

Basic Raw Material

Imported Crude Palm Oils and Degummed Soya Oil

Capacity TPD

400 TPD Chemical Refinery

400 TPD Physical Refinery

400 TPD Fractionation

200 TPD Vanaspati

Palm Oil

Main Product

Soya Oil Mustard Oil Vanaspati Ghee Groundnut Oil

Cotton Seed Oil Sunflower oil By Products

Palm Fatty Acid Oil Cloth Washing Soap

Contact

: JMD OILS PVT.Ltd.Village. Bhimasar, Opp. Bhimasar Railway Station, Bhimasar Gandhidham, Kutch, Gujarat - 370201, Ph. No. 02836-285543-47 Fax: 02836-585542 Email: jmdoils@rediffmail.com admin@jmdoils.com Visit us at: www.jmdoils.com

ORGANISATION STRUCTURE

LOGISTIC MANAGEMENT

Before understanding Logistic Management, I want to tell you about logistic department of the JMD Oils. Here Mr. Deepak Gupta is logistic manager and he is very experience person in the field of the transportation. In this company he is doing the outbound logistic. Men they are handling the KANDLA port’s activities and his assistant manager Mr. Biplendra pandy doing the company’s other logistic activates and in that Mr. Niranjan transportation manager provide their knowledge that make it very easy for the logistic dept. Logistic Management has very large scope in the today’s world. The developing country has very large scope but for they need such Service like transportation, communication, electricity. Here we are going to understand the very important concept that is logistic. Logistics involves a complex series of relationships and interactions among the different divisions of an organization. Logistic shows us how this entire process can be managed so as to increase the efficiency of the organization. It is a show Manufacturer’s relationship with his suppliers that will manage very efficiently and it will give competitive edge, over his rivals, and the benefits customer can reap from his company. Logistic covers a range of operations and activities depending on this relationship. It not only involves the co-ordination of supply to the final consumers, but also movement of a product within and outside the organization. In other words, the term distribution encompasses all movements of the product.

 Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involves the integration of information, transportation, and inventory, warehousing, material-handling, and packaging. Logistics is a channel of the supply chain which adds the value of time and place utility. We can’t imagine any business without logistics.  Logistics is the process of strategically managing the procurement, movement and storage of materials, parts through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfillment of orders.  Logistic is that part of Supply Chain process that plans, implements and controls the efficient, effective flow of and storage of goods, services and related information from the point of consumption in order to meet the customers, requirement. It is only in the last 20 years or so that the concept of Logistic Management has emerged and developed into a separate, recognizable management functions. Like many other new business concepts, Logistic Management also originated in US. It is founded on a practical fundamental principle, i.e. the cost of storage and movement are closely interrelated and by dealing with them as a single unified activity, can we achieve or realize the true potential of each. In a crux it can be said that Logistic Management aims at seven R's.

SEVEN R’s  Right product  Right quantity  Right condition

 Right time  Right place  Right customer  Right cost

INTERNATIONAL LOGISTIC  In international logistics only import of oils is done at JMD.  A department of logistics is responsible for purchase of crude as well as importing them to India.  International logistic head takes continuously monitors the prices of crude online and purchases crude oil when it is the most beneficial for the company.  The purchase Terms Company used is CIF. In CIF terms vendor make avail the crude at KANDLA port there after the responsibility is of company. Company as given contracts to CHAs for release of crude from port and then crude is stored at Tank farm (Terminals) at KANDLA.

DOMESTIC LOGISTIC  LOOSE / BULK Loose/Bulk departments work start when crude oil reaches at port side. There it is stored in tanks and then as per production schedule it is transferred from KANDLA tanks to plant side. Here sample is taken out from tankers and sent for quality check and than its unloaded threw pipes in storage tanks and then threw pipe lines it is passed to refining process. Again after refining process as per dispatch schedule if refined oil is to be dispatched loose than this department again is at work and refined oil is loaded in tankers and dispatched to destination.

 CONSUMER PACKS Once the oil is refined and ready for packaging, it is sent to the Packaging Department through pipelines for packing process. The company has in-house production of packing material. There are basically four types of packages used for oil packing. They are:-

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100ml Plastic Pouch

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500ml LDP Plastic Bottles

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1 Liter Plastic pouches.

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1 Liter LDP Plastic bottles.

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5, 10ltr LDP Cans.

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15ltr. Oil tins.

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15kg. Oil tins For production of 1ltr pouches, polythene rolls are purchased from outside and through

automated machineries pouches are automatically made and filled with the right amount of oil. The pouches are then automatically sealed off and ready for dispatch. These pouches have a high tensile strength. They can bear an outside pressure of up to 120kgs. For production of 1ltr LDP bottles, raw material, known as Plastic Capsules, is purchased from outside. These are processed to make bottles inside the plant. These bottles are then put on a conveyer belt, which take the bottles to automatic oil filling machines. Then, the oil is automatically filled to desired level and bottles are seal packed.

LOGISTICS AS BACKBONE FOR ANY BUSINESS 1. The customer in today’s marketplace is more demanding, not just of product but also of services. 2. In today’s marketplace the order winning criteria are more likely to be service based then product based.

3. Logistics Management can provide a multitude of ways to increase efficiency and productivity and hence contribute significantly to reduce unit costs. 4. The scope of logistic spans the organization, from management of raw material through to the delivery of final product.

Peter Drucker described physical distribution as the "last frontier of cost reduction". Using skilled management and modern technology for inventory management, inventory processing and transportation can reduce cost.

LOGISTICS MATRIX Fig: 6 V V aa

Service leader

Service and cost leader

uu ee aa A A dd vv aa nn nn tt aa gg e

Commodity market

Cost leader

ProductIvityAdvantage

Companies which have productivity advantage are known as cost leaders and which have value advantage are known as service leader. Companies which don’t have any advantage fall under commodity market and companies like JMD Oils Pvt. Ltd. which have both productivity as well as value advantage fall under the category of “service and cost leader.

FUNCTION OF LOGISTICS Fig: 7

Logistics, the synonymous term of physical distribution, involves planning, Implementing, and controlling the physical flow of materials from the point of origin to the point of the consumer at a profit. The role of logistics is to get the right amount of product to the right places in the right time. Logistics or physical distribution (PD): Planning, implementing, and controlling the physical flows of materials and final goods from points of origin to points of use to meet customers’ needs at a profit & Supply chain management Emphasizes close cooperation and comprehensive inter organizational management to integrate the logistical operations of the different firms in the channel.

Before going to the main activities of the logistics management thinks about the Raw martial of the company and thinks about how we are purchasing it. Here we are going to understand the purchase process of the JMD Oils.

PURCHACE PROCEDURE OF JMD OILS PVT.LTD Fig: 8

Purchase process is very important part of the any origination. Here the work is undertaken by the Mr. B.D Gupta as the purchase manager and he is reporting to Mr. Vinod Kumar as the General Manager of the JMD Oils. So start the process with Purchase department receives indent (Requirement note) from the department which needs any material, the indent is signed by Indenter, Store, HOD and GM. After receiving indent purchase department inquire for competitive rates from different supplier of the product, they get competitive quotations from these suppliers, than they make a comparison sheet of that product in which they compare about the rates and delivery time of the suppliers and select the best alternative from the available suppliers, a purchase order is made by department which is given to supplier and accordingly supplier dispatch the consignment, material is recd. by store and GRN is made by store which is forwarded to purchase department, purchase department forward this GRN with bill of the

material to accounts department, than account department make the payment according to terms and conditions.

QUALITY CONTROL AT JMD OILS PVT.LTD  RAW MATERIAL INSPECTION At the time of crude oil procurement, once the crude oil is brought into the company crude oil is checked, verified and after assurance by the quality control department it is brought into the storage tanks for further processing  INTERMEDIATE LEVEL Secondly at the oil refining stage, the oil is checked at various stages viz. neutralizing, bleaching and deodorizing. After it matches with quality standards set by the company at every level, it is sent for further processing. If the quality is not up to the desired level at any stage, the oil is further processed for removing impurities. Unless and until the product matches the quality standards it cannot be sent for further processing.  PRE-PACKAGING Before sending it for packaging, the finished good viz. oil is again checked on the following parameters. 

FFA (Free Fatty acids)



Iodine value



Phosphorus value



Moisture value



Saponification value



Tetra Butyl Hydro Quinine(TBHQ)



Sediments



Unsafe Matter



Refractive Index



Color

The company has received the ISO 9001:2000 certifications and HACCP (Hazardous Analysis of Critical Control Points)

MATERIAL HANDLING Efficient and careful material handling methods in factory and distribution Warehouses can contribute much to customer satisfaction. Proper material handling helps To: 1. Decrease the damage 2. Maintain the quality of storage 3. Facilitate order processing 4. Move right goods at right time to make them available to right customers.

All the more, material-handling function of physical distribution helps to reduce The number of staff required for managing inventory and also, the dangers of obsolescence. This further reduces the maintenance cost. The need for material handling had always been there at various stages of production and distribution. The cost of such activities can represent anything up to 50 per cent of total production cost. Physical distribution aims at reducing this cost through development material handling techniques. These developments have been phenomenal in recent years. The improved techniques are not confined to production only, but have also been carried forward to other phases, dealing with physical movement of goods. The benefits of these improvements are therefore, not only reaped by manufacturers but also by consignee, as he too gets his products in perfect condition and in a shorter time.

ORDER PROCESSING Fig: 9

Order Cycle

Time to complete the activities of the order cycle is at the very heart of customer Service. It has been estimated that the activities associated with order preparation, transmittal, entry, and filling represent 50 per cent to 70 per cent order cycle time in many industries. Due to this, activities involved in processing company's orders are receiving more and more management attention. As it is closely related to sale and production, order processing should also be a part of physical distribution department. Effective order processing should begin with transmission of orders information, continue uninterruptedly through stock checking, accuracy checking, credit checking, back ordering, transcription and billing, to move on to order filling. Along the way, it should also have an efficient order status reporting system. With so many departments involved in processing orders, delay can occur at any stage. It is the responsibility of physical distribution manager to see that sluggishness does not occur.

INVENTORY CONTROL Business firms usually believe that if too high an inventory level is maintained then they would have to bear a very high inventory carrying cost and also a high risk of obsolesce. On the other hand, if too Iowan inventory is maintained, then it would result in high restocking and production cost, as balance between the two extremes need to be achieved. This can be done by related factors like movement and storage. This function of physical distribution is called inventory control. It deals with the determination of optimal producers for procuring stocks of commodities to meet future demand. The decision concerning when and how much to order is a matter of balancing various conflict cost functions. Inventory control aims at minimizing inventory cost, subject to demand and service constraint. Inventory control guides a firm on factors such as 1. How much to order? 2. When to order? 3. How to control stock-outs at lowest cost?

WAREHOUSING AND STORE DEPARTMENT Warehousing refers to storing products while they wait to be sold. This function is necessary, as production and consumption functions rarely match. Organizations use either warehouses or distribution centers to process their products. The choice is made in regard to the transportation cost, amount of customer service and level of inventories. A company, if it chooses to maintain a warehouse, has to go for either a public or a private warehouse. Private warehouse offers greater flexibility in design to meet the storage and handling need. It also provides more control over the activities carried on in the Warehouse Public warehouse requires no fixed investment by the firm and offers location flexibility and ability to increase the warehouse space to cover peak requirements. Now-a-days manufacturers often opt for

distribution centers to store and distribute goods. A distribution center is a large, highly automated warehouse, designed to receive goods from various plants and-supplier.

FUNCTIONING OF STORE AT JMD OILS PVT LTD Fig: 10

Stock of all items other than Crude oil and Refined oil is maintained by store, store receives requirement(Issue sleep) from the department which is signed by department head, than it checks in the stock if stock of that material is available than store issue that material to the department and if material is not available than they ask for indent from the department which is verified by store and forwarded to purchase department and receives goods, goods are checked by store and if they are as per specification they keep that in stock, make a GRN and issue to demanding department and if it is not as per specification than reject that material and return to supplier. RGP is made for goods given for repairing and NRGP is made for goods that are returned. For records and inventory management store uses “Navision” software through which they keep records of inventory as well as positioning (where which product is located). In that the “Navision” software is very useful for each step of the origination. This software is handle all the activities of the JMD Oils and also its helps to our DELHI head office they are also access the “Navision” by their specific id. Here the all the warehouse of the company can also access and see the goods and goods in transits by the help of the software. Software is very useful but the software has limitation of the 16 users.

PACKING

Packaging cost is a part of the total cost of production. Container manufacturers, carriers, trade associations and government agencies are continuously working for improvements in packaging techniques. Physical distribution department, in order to fulfill this function, has to work in cooperation with sales and manufacturing department, and deliver the products in their best quality and condition in the consumer hands. Thus, a systems approach is required to enable one department to share its specialized knowledge with the other departments, and in turn, fulfill the objective of the organization. In fact, logistics system design begins with the packaging file that document the dimensions and capacity of all packages that flow through a company’s facilities. Second, packaging is important for the many different ways in which it influences and is influenced by the logistics and manufacturing activities, not only within a company but also with suppliers and customers.

PRODUCT MIX OF JMD OILS PVT LTD

For production of 1ltr pouches, polythene rolls are purchased from outside and through automated machineries pouches are automatically made and filled with the right amount of oil. The pouches are then automatically sealed off and ready for dispatch. These pouches have a high tensile strength. They can bear an outside pressure of up to 120kgs.

Corrugated is the ultimate in flexible packaging material. Ninety (90) percent of all goods shipped to market are packaged in corrugated. For production of 1ltr LDP bottles, raw material, known as Plastic Capsules, is purchased from outside. These are processed to make bottles inside the plant. These bottles are then put on a conveyer belt, which take the bottles to automatic oil filling machines. Then, the oil is automatically filled to desired level and bottles are seal packed.

FUNCTIONING OF PACKING DEPARTMENT  Packaging department at JMD Oils is very well designed. Semi autometic packaging machines and fully automatic machines are set in block B and C.  Company it self manufactures Tins, Jars, Pet bottles, Carttons etc.  Packaging department recieves the demand and dispatch schedule and than plans the packaging accordingly. Packaging department look after the inventory of packaged finished goods and also inventory of packaging material.

 Dispatch schedule is transferred to logistics department to delever the goods to final destination(i.e Depots and agents of company)  Packaging department generates reports in navision and the copy of reports are mailed to concern departments.  Packaging department is responsible for correct and timely packaging of goods, dispatch and loading of goods and for any errors like overfilling and underfilling, leakage etc.

TRANSPORTATION MANAGEMENT

Transportation is essential in Physical distribution. It deals with both movements of Raw materials to the plant and of semi- finished products or finished product to the market. Problems in transportation services can lead to a company retaining the inventory for several days; more than physical distribution had planned for. This increases inventory-carrying cost and

decreases the number of times inventory is converted into cash. Thus, efficient transportation planning and management is a prerequisite function of physical distribution. There are five way of transport such as Rail, Air, Road, Pipeline and Waterways.

RAIL ROADS—LONG DISTANCE SHIPPING

Railroads continue to present an efficient mode for the movement of bulky commodities over long distances. These commodities include coal, chemicals, grain, non-metallic minerals, and lumber and wood products.

OUTBOUND LOGISTIC THROUGH TRAIN Fig: 11

When goods are to be sent through goods train, company make n indent and give it to railway department, railway department gives a waiting no. and according to that waiting no. we are sent the date when we will ba availed wegons according to that date dispatch is planned, if company have to sent loose oil than it is sent through tankers and if consumer packs than goods are sent through trucks, vehicles are loaded with goods and sent to railway terminals, there vehicles are unloaded in goods train and goods are sent to other places through train.

Logistic management included inbound and outbound logistic. In that there are various mood of the transportation like Rail, Road, Air and water. In the side of the outbound logistic company follow mainly two out of this one is Road and Rail. You can see the process which we are following in the outbound logistic when we going to select Rail. It’s very cheap compare to the road but it may take some more time and here the rut of travelling are fixed.

AIR FREIGHT- FAST BUT EXPENSIVE

Because of the relatively high cost of air transport, small businesses typically use air only for the movement of valuable or highly-perishable products. However, goods that qualify for this treatment do represent a significant share of the small business market. Owners can sometimes offset the high cost of air transportation with reduced inventory-holding costs and the increased business that may accompany faster customer service.

PIPELINES-SPECIALIZED TRANSPRTERS Pipelines are utilized to efficiently transport natural gas and oil products from the Mining sites to the refineries and other destinations. In addition, so-called slurry pipelines transport.

TRUCKING-FLEXIBLE AND GROWING

The shipping method most favored by small business (and many large enterprises as well) is trucking. Carrying primarily manufactured products (as opposed to bulk materials), trucks offer fast, frequent, and economic delivery to more destinations in the country than any other mode. Trucks are particularly useful for short-distance shipments, and they offer relatively fast, consistent service for both large and small shipments.

LOCATION ANALYSIS With the continuing growth of individual units of economic activity, there is Greater expansion of organization, and new plant locations must be carefully chosen. Moreover, trend of decentralization of industries have further increased emphasis upon the site location that best fulfills the needs of the customers and companies. Physical distribution performs this

function after analyzing aspects like market area, transportation facilities, transportation rates, and public and private warehouse facilities.

Location analysis is very difficult task for the company and its take more time tracking the location. The constructions are increasing day by day and its change the some rut of the location but when you finish it you will get more benefit out of it. It will save your money as well as your time.

In the above map you can see that there is locations are described. In that there are three locations where goods have to deliver but where to start first and end the delivery process. Here we can start with two location first one is KANDLA and other is Bhuj but before selecting the location you have to think about your capacity to send your customer and also think that where our warehouse are already have place. It will reduce your time and some fuel of the truck. If we are continues follow this rule of transportation then our cycle of three to four days comes down at two to three days. It will easy to understand by this diagram.

In the diagram you can see that after following the location analysis the time of the days are reduced. The day three comes to the two and half but after that it well come up to the two days.

TRANSPORTATION AT JMD OILS PVT.LTD

DELHI SUPER ROADWAYS (DSR) & JMD READ WAYS In today’s highly competitive business setup where advantages tend to be shoot lined, maintaining a responsive, reliable and cost efficient products and material supply chain is often a decisive success factor. With this in mind, JMD has structured logistics as a distinct business segment, through its company, Delhi super roadways, which offers in house capability in road transportation services and cold store ware housing services. To meet delivery requirements, they manage on extensive overland transportation network of over 100 commercial bulk tankers with a market reach covering northern region like Delhi Haryana, Jammu & Kashmir, Rajasthan and other neighboring states.

Their success in providing a high service level has increasingly attracted third party customers as well. Customers are also guaranteed optimal service from adequate stocks maintained at their various warehousing locations.

DISTRIBUTION NETWORK OF JMD OILS PVT.LTD

JMD Oils head office in Delhi and most of the market are covered by the company that are also in northern region like Delhi Haryana, Jammu & Kashmir, Rajasthan and other neighboring states. The plant is established in the Kutch at BHIMASAR and the plant is

running very successfully in this area. Here the transportation is very easy and cheap. Here two port are available one is Kendal port and other one is Mundra port so transfer oil from the various country by the ship we can get very easily. That is very beneficial for the company because they saving time and money.

THE BASIC DISTRIBUTION PROCESS OF THE COMPANY Fig: 12

JMD Oils has set up a strong distribution network of Company Distributors and Super Stockiest or its retail operations. This chain helps to tap even the small retailers/traders and thus increasing our reach. Today JMD Oils has its distribution foot prints all across the country with various stock-points catering to more than 1300 distributors, 60 Super Stockiest and numerous brokers and other trade associates. JMD Oils retail reach is more than 325000 outlets and its consumer reach is more than 15 corers Indians.

WATER CARRIERS-SLOW BUT INEXPENSIVE

There are two basic types of water carriers: inland or barge lines, and oceangoing Deep-water ships. Barge lines are efficient transporters of bulky, low-unit-value commodities such as grain, gravel, lumber, sand, and steel. Barge lines typically do not serve small businesses. Oceangoing ships, on the other hand, operate in the Great Lakes, transporting goods among port cities, and in international commerce. Sea shipments are an important part of foreign trade, and thus are of vital importance to small businesses seeking an international market share. Here we are operating our port activities from the KANDLA port. We are importing our goods from the Brazil, Malaysia, and Australia. When the Raw material required for the production before that we make

one agreement from the different oil importer country and before shortage of the time the vessels comes in to the port. Here the all the work of the port is handle by the logistic manager Mr. Deepak Gupta.

LOGISTICS HAS TWO PARTS: INBOUND & OUTBOUND LOGISTIC INBOUND LOGISTICS Fig: 13

Logistic department receives production schedule from the production department and then prepare a loading schedule accordingly that how much and when to procure the raw material. Then they work as per schedule and send tankers to terminals from there they load the

tankers and then the tankers are sealed at KANDLA. From KANDLA tankers come to plant where a gate inward is made than trucks enter inside plan and is weighted at weighbridge. Than seal is opened and sample of oil is checked at lab. After checking if it is found as per the standards than it is unloaded in tanks or else it is rejected. After unloading MRN is made, tanker is again weighted at weighbridge and then gate outward is made. JMD has enough tankers for transportation but if tankers are not available than tankers are hired from market. They enquire about freight from many transporters and negotiate with them and then as per the need (Days or Freight) they hire tanker and process goes on.

OUTBOUND LOGISTICS OF CONSUMER PACK (Oil, Salt Soap) Fig: 14

Refined oil which was stored in storage tanks is sent for packaging, oil is packed in different sized consumer packs as per orders given by depots and marketing division. A schedule of dispatch is prepared as per orders and sent to packing department as well as production department. After that loading advice is prepared and checked for availability of trucks. If trucks are available than trucks are sent to packaging department otherwise trucks are hired from outside transporters by negotiating with them for fare and selected the best option. Trucks gate inward is made and weighted at weighbridge than Delivery Order is made and truck is sent to packaging department for loading goods(salt, oil, soap), after truck is loaded it is again weighted at weigh bridge and then security check is done and gate outward is made from their truck is sent to final destination (depots and distributor).

SWOT ANALYSIS With the help of the observation, primary and secondary data and also analyze of the structure of the organization, we came to know remarkable strengths and weaknesses, opportunities and threats.

STRENGTHS  Raw Material import from the KANDLA Port which is not much far from the JMD Oils Pvt. Ltd. The distance between the KANDLA port and the JMD is around 28 km which is beneficial to reduce the consumption of the fuel and the time.  JMD Company has wide area so it’s very easy to expand the business or plant.  JMD paid very low taxes to the government because JMD is located in underdeveloped area (KUTCH) which is charged by very low tax rate compare to developed area.

 It is located near a village named BHIMASAR so it’s easy to get labors and also is located near cities named ADIPUR, ANJAR & GANDHIDHAM so it’s also easy to get educated and qualified employee.  Main advantage of the JMD is that it is having its own transportation named Delhi Super Road Ways. And also there are many transportation or logistics companies which are provided their better services to their customer in the suitable rate/price.

 Whatever company needed row material for the packing and all that they have own plant for that type of row material. E.g.: Boxes, Tin, jar, pouch etc.

 JMD OIL has great waste management so the waste of the oil is useful for other purpose and also they have another market to sell their wastage.

WEAKNESS  JMD OIL has large market in the northern regions but in the domestic market and other state has not much demand.

 Company is having large and latest machinery but there are comparatively weak maintenance service of the machinery and other technical items.

 JMD oils give less attention to the advertisement and in the competitive world without advertisement no one can grow.

 Utilization of the area is not sufficient here company can make new plant, stand for the trucks etc.

 JMD OILS is not having sufficient qualified workers.

OPPORTUNITIES  India is second number in the population behind the china and it will be a number one so you can imagine that the demand of the oil and looking to the current status of the demand (120) and available oil (94) is low. If the capacity is increased oil will be fill the demand.

 Company have well established brand in the north region so with the help of this company can increased demand by covering nearest city and state.

 Company has great experience in the field of the oil industry so company have benefit to go another similar industry.

 JMD OILS has wide area so company have option to start new line of product or make a one plant for the other row material that are needed for the existing product.

 Company is located in the KUTCH. If the company try to cover the market of Kutch it’s very easier for JMD OILS but advertisement expense play a big role in that.

THREATS

 Now a day’s Oil industries is growing very fast due to increasing in the population so many companies will try to enter in this field so it’s very difficult to sustain and retain of new customers.

 We are importing our row material from the different country. If our government policy and regulation change it will create some difficulty for the company.

 Customer is a king of the market and they have option to buy the product but many companies just because of the advertisement change the customer decision.

RECOMMENDATIONS

 When we are giving order at that time try to gain the quantity discounts from raw material suppliers by ordering in a lot.

 Company has own trucks and its operating by the name of Delhi super roadways so here all the transportation done by the trucks. If we Use GPS (Global Positioning System) so it’s very helpful to known the trucks location.

 If we create a warehouse within a warehouse then it’s very easy to identify the different product storage area.  Order pickers spend about 60 percent of their time walking product or moving product around. Consider an automated solution, they can keep the SKUs small stock in front and large stock upside so that it will be time saving.

 I spend my one month in the logistic department and I find that we are using the “Navision” software but software has limit of 16users because of that reason that DO

(delivery order) cant we made but we give time to use this software at fixed time and after use it closed the access point.

 In the packing department workers not having any safety tools so provide necessary tools of safety before any accident.

CONCLUSION JMD OILS PVT.LTD has great market demand in the northern region and now they are started promotional activities in the domestic market and other cities. In the last two months I observed that the practices going in logistics are best to my knowledge because of the very good staff. Here the staff cooperation at all the level is high. They have followed the best way to control the cost as well as making its customers satisfied and proud to be associated with JMD. In the JMD OILS the work are done by the fully automated system in the logistics (Transportation, Packing, Storing etc.) which is worth learning.

BIBLIOGRAPHY

BOOKS  Ballou, Ronald H., Business Logistics Management, International Edition, Prentice Hall, New Jersy, 1999, p. 660.  Basics of distribution management – A logistical approach Satish K. Kapoor and Purna Kansal. PHI – 2003.

INTERNET  http://www.cooit.org/subindexdetail.asp?id=1&pid=4  http://www.cooit.org/indexdetail.asp?id=12&pid=12  http://www.cooit.org/subindexdetail.asp?id=14&pid=13  http://www.cooit.org/subindexdetail.asp?id=15&pid=13  http://www.chempro.in/  http://www.oilmillplant.com/oil-refining-plant.html? gclid=CNC9t_bVlZsCFc0vpAod9kC1qQ  http://www.oppapers.com/essays/Edible-Oil-Scenerio-India/128439  http://www.shumaonline.com/costreduction_purchase1.html  http://en.wikipedia.org/wiki/Logistics  http://www.jmdoils.com