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GOKAK TEXTILES LTD.

(Gokak Mills Division) Gokak-Falls

EXECUTIVE SUMMARY
Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible. This is an effort put to A study on Logistics System of Gokak Mills Limited. The study was made based on observation and personnel interview with logistics manager. The main objective of this report is to study about the Logistics System of Gokak Textiles Ltd Gokak Mills Division, Gokak-Falls.

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls INTRODUCTION OF THE STUDY
The term logistics is often misinterpreted to mean transportation. In fact, the scope of logistics goes well beyond transportation. Logistics forms the system that ensures the delivery of the product in the entire supply pipeline. This includes transportation, packaging, storage and handling methods, and information flow.

The industrial policies in India have prompted manufacturers to build plants in remote, backward areas due to inexpensive land and tax benefits. This poses some serious logistical problems. Apart from a poor road and transportation network, the existing communications system in India leaves a lot to be desired by any international standard. It is in this context that logistics has to be considered in India.

Logistics call for an understanding of the total supply chain, the elements of which include inventories, packing, forwarding, freight, storage and handling. Logistics is responsible for all the movement that takes place within the organization whether it is inbound logistics of incoming, raw materials or movement within the company or the physical distribution of finished goods, logistics encompasses all of these.

Typical logistics framework mainly consists of Physical Supply, Internal Operations and Physical Distribution of Goods and Services. To put it more simply, the material supply logistics starts from the base level of generation of the demand, through the process of purchase and supply of material from the vendor right through to final acceptance and payments to the supplier and issue to the indenter and has to be considered as a one whole activity with each stage having an impact on price/cost of material supply.

Logistics is, in itself, a system; it is a network of related activities with the purpose of managing the orderly flow of material and personnel within the logistics channel. Logistics is concerned with getting the products and services where they are needed when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packing.

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls INDUSTRY PROFILE INTRODUCTION
Indian cotton textile acquires a key and important position in the economy of our country because of its contribution to the industrial output employment generation & foreign exchange earnings. At present, the contribution of the textile industry to GDP is about 3.5% to 4%. The textile industry provides direct employment to about more than 30million people & is the second largest employment provides in India next to agriculture. It has good labor strength & adopted very modern technology. The industry apart from being one of the agro based industries is also labor intensive & produces one of the most important day to day customer items essential for the people. Cotton is main raw material use for production of yarn and cloth. When the mill feels lack of cotton by local areas it imports the cotton from Australia & South Africa. The textile industry is a self reliant industry from the production of raw materials to the delivery of final products with considerable value addition at each stage of processing.

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls COMPANY PROFILE


Company Name : Gokak Textiles Ltd. Gokak Mills Division Address : Gokak Mills Gokak Falls 591308(Belgaum). Ph: 08332-225004, 225154. Fax no: 08332- 225354.
Year Establishment : 1887

Products

: Cotton and Blended yarn, Grey Cotton and Blended fabric Dyed yarn, Terry towel

Installed capacity Nature No. of Spindles

: 70 tones of yarns per day : Textile Business : DTA 72288

7th Mill - 25200 Number of Employees Capacity of power Gen : 3778 as on 31/12/2011 : Hydro 10.8 MW Diesel - 5.6 MW H.F.O - 6.2 MW REGISTERED OFFICE Gopalkrishna Complex, Residency Road, Bangalore.560 025 Telephone No : 91-80-25588079 Fax No : 91-80-41232267. CORPORATE OFFICE 24th, 29th Main, BTM Layout 2nd Stages Bangalore

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

THE SP GROUP:

The SP Group has over 23,000 employees and a group turnover of Rs 12, 500 cores Shapoorji Pallonji Group has evolved and grown exponentially to become a huge conglomerate with multiple business segments with a progressive outlook and a thoroughly professional approach. The SP group operates in following sectors SP Real Estate Development of Luxury Apartments, IT / ITeS SEZs, Affordable Housing, Retail, Hospitality, Commercial, Leasing and Consulting SP Infrastructure SP Energy Bio SP Fabricators Ports, Power Plants, Highways, Tollways -Fuels and Solar Power Generation Engineered Facades, Cladding, Architectural Coatings SP EPC Power and Steel Gokak Textiles, Yarns

SP Construction Materials Pre-Engineered Buildings, Interiors, Access Flooring Afcons Infrastructure Marine Works, Roads, Bridges, Tunnels, Pipelines, Specialist Foundation Works Piling, Drilling, Grouting Eureka Forbes Air and Water Purifiers, Security Systems

Forbes & Company Engineering: (Precision Tools, Steam Turbines and Blowers), Shipping (Container Transportation, NVO Container Carrier), Logistics (sea and air freight, customs clearance, bonding, Warehousing and multi-modal transportation), Transaction Management & Business Automation (Currency Counting machines, Rural ATMs, Electronic Stamping and Electronic Franking Networks) Sterling AND Wilson Mechanical Engineering & Plumbing Services, HVAC,

Firefighting, DG Sets and Panels Manufacturing Transmission Lines, EPC

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls LOCATION


Gokak Mills is situated in the foothills of Sahyadri Hills on the bank of River Ghataprabha, 70kms from Belgaum city and 6km away from Gokak town and near to Ghataprabha & Gokak Road railway station on the Bangalore-Miraj broad gauge south central line. The height of the waterfalls is about 170ft. It is believed that Gokak Falls resembles that of Niagara in the general features of fall and its height. There is a hanging bridge across the river measuring about 210mts long and height above bed is 14mts. The beauty of the area is beyond expression.

HISTORY
A Gokak mill was registered in the year 1885 by Ritche Stewart Ltd, under the name of Gokak water power and manufacturing company Ltd (GWPCL). On the 5th October 1887 the first power house of the country was commissioned and with the help of 250 HP of mechanical power generated by peloton wheel, which was transmitted to the spinning mills run by Gokak waterpower and manufacturing company ltd. The extraordinary length of the line of transmission and speed attained by the huge pulley wheels were said to surpass only thing as the kind in the world.646.42 hectors is the total land location of the mill dividing area including village forestation and area listed in the total property.

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


In the year 1887 1st mill was started with 6000 spindles and in the year 1890 spindles were increased to 29525. In the year 1913 1st time in Asia started Hydro power generation by using turbine. In the year 1919 the company was registered in India as Gokak Mills Ltd then it becomes a rupee company. Ritche Stewart and company limited, united with M/s. Forbes and company to becomes Forbes Campbell of $ 100000. The company started with mechanical power with 250 HP pelton wheel. In the year 1924 a waste processing unit was started. In the year 1973 Gokak Mill merged with Gokak Volkart Ltd and the Gokak Mill became division of this company. In the year 1992 Gokak Volkart merged with Forbes Campbell Ltd and the new company named as Forbes Gokak Ltd. In the year 2007, Gokak Mills came out and made a separate textiles company as Gokak Textiles Ltd consisting of Gokak Mills, Campbell knitwear and pt Gokak,

THE FORBES GROUP


Established in 1767 by john Forbes of Aberdeen shire, Scotland, Forbes is the oldest surviving company in India & one of the world. The management was in the hands of the Forbes family &later, passed on the Campbells, subsequently Tatas acquired its share & family divested the ownership of the company to Shapoorji Pallonji Group. Forbes was in trading & agency business but gradually moved into manufacturing. Forbes is predominantly in manufacturing & service sector. The house of Forbes has number of alliances with overseas corporate in various business activities. VTU Dept of PG Studies, Belgaum 7

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls CORPORATE PROFLIE


FORBES GOKAK LIMITED is the result of a merger between two of Indias oldest companies Forbes Campbell & Co Ltd & Gokak Patel Volkart. The group has a number of alliances with companies in the UK, USA , Sweden, Mauritius &several other countries .Tatas &their associated companies were the single largest shareholders Forbes i ,e 28% TATA group divested their shareholding in FGL which was acquired by Shapoorji Pallonji group company effective feb2002, which now holds close to 70%shares of FGL. Shapoorji Pallonji group one of the premise business hours in India. Set up 1865 has an excellent track record several prestigious projects to its credit, including the palace of the sultan of Oman. The Shapoorji Pallonji group has number of subsidiaries and divisions. It is wholly owned subsidiaries and divisions. It is wholly owned subsidiaries are bradma of India Ltd. Campbell knit wear Ltd & Eureka Forbes Ltd. PT Gokak Indonesia is an associate company. FGLs core divisions are textile, engineering & shipping.

LAND DETAILS
SI NO 1 2 ITEMS Total factory land in Gokak Undeveloped land A) Konnur B) Gokak 3 Developed land Total area Area in Acres 127.00 214.34 311.35 315.02 968

WORKING HOUR
SHIFT I Shift II shift III shift HOURS 1.00 AM to 8.00 AM 8.00 AM to 4.30 PM 4.30 PM to 1.00 AM TEA/LUNCH TIMING 5.30 AM to 6.00 AM

12.00 noon to 12.30 PM 8.30 PM to 9.00 PM

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls BOARD OF DIRECTORS

Designation Chairman Executive Director & CEO Director Director Director Director Director Director Director Director Director

Name Mr. Shapoorji Pallonji Mistry Mr. H.S. Bhaskar Mr. Pallonji Shapoorji Mistry Mr. Ashok Debabrata Barat Mr. Govind Dasu Prasad Mr. Chandrakanth Girdharalal Shah Mr. Kaiwan Kalyaniwalla Mr. Ramaotar Goyal Mr. Sanjay Sarkar Mr. Pradeep .N. Kapadia Mr. R. N Jha

KEY MESSAGES OF GOKAK MILLS


1. Result Oriented 2. Quick Response 3. Continuous improvement 4. Team wok 5. Development of skills 6. Respected works 7. Display ability develops self-confidence

COMPANYS GOAL
1. Leadership in quality. 2. Satisfied customer. 3. Consistent growth. 4. Reasonable profit. 5. Happy community

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls MISSION


WE are dedicated to provide quality product and services .we will continue to develop quality to suit specific customer needs in line with changes in demand .Being a leading exporter, we will consolidate and enlarge manufacturing facility to meet customers quality standards at reasonable prices.

VISION
1. Customers delight through quality products and services. 2. Sustain and continuously enhance all stakeholders interest. 3. Create working environment to make all employees produces as a member of team. 4. Creation of clean and healthy environment..

QUALITY POLICY
We strive for achieving complete customer satisfaction by supplying quality products and services by exceeding customer requirements. We are committed to continual improvement in product quality and services based on customer feed back.

Gokak Textiles Limited consists of the following Divisions:


1. Gokak Mills

2. Forbes Campbell Knitwear 3. Forbes Brands Division KEY BUSINESS FACTORS OF GOKAK MILLS
1. Highly competitive, wide spread market. 2. Continuous changes in customers needs, which is fashion led. 3. Labor oriented hence high Labor force. 4. Too many controls by Government and trade. 5. High variable raw materials with fluctuations in price. 6. Appropriate technology to meet global competition.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls MILLS ACTIVITIES


Section No. I II III IV V VI VII AREA OF ACTIVITY Spinning---100% Cotton Carded and Combed Spinning and doubling --- Cotton blends Carded and Combed Open end spinning, and waste recovery units Spinning, doubling and weaving --- Cotton and blends Yarn mercerizing and dyeing Weaving--- Terry towels Spinning--- Cotton Carded and Combed and mlange yarns.

MAN POWER: - as on 31/12/2011


Designation Manager Supervisors Clerks Permanent workers Badli workers Multi skill trainee ITI trainee Total No of Employees 22 148 20 1773 1770 33 12 3778

KEY GOALS 1. Profitability :- To achieve the minimum (return on investment as measured in


terms of profit before tax on capital employed)

2. Growth:- To achieve a group turnover in excess of 500 corers per annum by year
2011-2012 Customer`s loyalty:- To ensure that customers become and remain our loyal friends and our most effective spokesmen and advertisement

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls BUSINESS POLICY


Gokak Mills will strive to improve quality and skill to world standard. We will manufacture products of consistent quality and price viable to our customers .We will specialize in certain products for certain selected customers .We will adopt a policy of continuous learning and improvement to retain our premier status. Exports will receive priority.

ENVIRONMENTAL POLICY
Gokak Mills No 7 is engaged in manufacturing of cotton yarns Combed and Carded is Committed to Comply with relevant Legislative, Regulatory and other requirements applicable to its activities and its products. Prevention of pollution by following good management practices, minimizing and reuse of solid waste wherever possible and conserve natural resources and Biodiversity by planting more trees within the mills premises and surroundings areas by providing saplings. Continual improvement in its environmental performance by periodically reviewing its objectives and targets. The above policy is well implemented and communicated to all the employees. The copy of the policy will be made available to the regulatory authorities and public on request.

ENERGY CONSERVATION POLICY


We commit to save energy by means of systematic and scientific approach in identifying real opportunities which are economically viable. Ultimate objective is to reduce cost/ unit of production and also save Fuel, Water and Compressed Air.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls HEALTH AND SAFETY POLICY
It is the policy of company which that its activities should be conducted so to ensure that health and safety of its employees as well as other persons, in the factory premises to ensure that environment around is not damaged. The Company attaches as great important to the above objectives as it do its primary business objectives. The Company believes that restricted to the Health and Safety in the manufacturing and allied activities are controllable and it will take all reasonable steps towards this End. While compiling with all relevant rules and regulations the company will also provide all necessary inputs by ensuring that:

The plant installed is designed, maintained and operated in such a way that it is safe and without risk to health.

All necessary arrangements are made in the mill to ensure safety and health of the workers during the use, handling, storage and transport of articles and substances & disposal of trade waste & effluents out side the mill premises.

Adequate arrangements are made for firefighting emergency exists. Workers are properly informed, instructed & trained for the job they handle. Pre-employment training is given. Regular safety contests on good house keeping, safety suggestions, safety slogans, safety posters etc. are carried out and prizes are awarded in order to involve workers to a great extent in promotion of safety and health.

Regular plant safety inspections are carried out and unsafe conditions, if any, are rectified. Monthly safety meetings with managers and department heads is conducted to discuss and organize safety and healthy related activities.

PRODUCT COMPETITORS:
Grey yarn for knitting : EOU like Amit, Indocount, Eurotex, Mahaveer, Nahara spinning mills. Grey yarn for weaving Terry towels Dyed yarns : Vardhaman, welspun, Jamshree : Vardhaman, Mahaveer, Arunodaya, Nahar etc. : Vardhaman Sundraj. 13

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls SUCCESSIVE FACTORS OF THE COMPANY
1. Product Quality: As required by the customer delivery on time. 2. Productivity: Improvement and real growth. 3. Cost of manufacture: Reduction in cost high realization. 4. Finance: Economically managed funds and shorter cycle time. 5. Appropriate technology: To have an edge in the market. 6. Customer relation and satisfaction. 7. Supplier performance: Consistency in supply and delivery. 8. Effective support service. 9. Skilled and satisfied employees with empowerment. 10. Community support.

LIST OF EXPORTING COUNTRIES:


India is one of the leaders in the world cotton market .The main competitors of India are Pakistan, Italy, Korea, Indonesia, Turkey, Brazil and USA. 1. China 2. USA 3. UK 4. Belgium 5. Turkey 6. Egypt 7. Saudi Arabia 08. Brazil 09. Colombia 10. Argentina 11.Dubai 12.Korea 13.Magnolia 14.Jordan 15.Nepal 16.Bangladesh 17.Hong Kong 18.Japan 19.Taiwan 20.Australia 21.South Africa 22.Canada 23.Israel 24.Lebanon 25.New Zealand 26.Mauritius

AWARDS AND ACHIEVEMENTS 1988 - K.P Goenka memorial award. 1998 - Supplier appreciations award. 2000 - Export aware by government of Karnataka 2001-02 - State award of excellence in exports NON SSI-GOLD. Best mills aware instituted by Karnataka cotton association Hubli. Guest of honor given at Belgaum industrial johnson. 2002 - Corporate award First Prize for Energy Conservation in Textile Sector by the Ministry of Energy
by Government of Karnataka. VTU Dept of PG Studies, Belgaum 14

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls ORGANIZATION STRUCTURE


The Organization Structure of GOKAK MILLS is based on hierarchy system and department maintenance is done based on enterprise functions viz. Production, Purchase, Accounts etc. The Organization structure is to design to clarify who is to do what tasks and who is responsible for what results. Decision-Making and communication networks and very clear and well informed to all employees. The department heads, managers, and supervisors are very clear about their limits of authority and responsibility. The coordination of activities is achieved through set of well- defined rules and procedures, various aspects of planning observed here. In this Formal Structure, there are many informal groups. Employees living in a same colony etc., even we can see pairs of sons and fathers working here. These informal groups have been positively utilized by the MILLS to achieve its goals and objectives. and personal contacts .A balance decentralization can be

VARIOUS DEPARTMENTS AT GOKAK MILLS LTD are:


Production Research and development Human resource development Finance & Accounts Purchase Stores Engineering Chemical processing Marketing Dispatch Project and development Information technology Production, Planning & Control

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

ORGANIZATION CHART

Prod Mgr SPG P.S.I S.I MT SO CNP INCH CAN TT PLNG ENGR ELECT

Abbreviations - Production Manager - Spinning - Post Spinning In-charge - Spinning In-charge - Maintenance - Shift Officer - Cone Packing - In-charge - Canvas - Terry Towel - Planning - Engineering - Electronics

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls MARKETING DEPARTMENT:


Marketing department is located in Mumbai. All activities are governed and controlled in Mumbai itself. It is having three divisions mainly:

EXPORTS: The division concentrates on all export and the marketing of Terry Towel in both export and domestic market.

DOMESTIC SALES: It looks after sales of Terry Yarns and Grey Fabrics in domestic markets through its branch offices located in various centers all over India.

VALUE ADDED TEXTILE: It concentrates on processed yarns for both export and domestic markets. It has agents for offering better service and to collect information on markets

PRODUCTION DEPARTMENT:
Gokak Mills is involved in manufacturing cotton yarns of both grey and dyed. Gokak Mill also manufactures a small quantity of terry towel and canvas fabrics. As earlier mentioned Gokak Mills is integrated with seven different mills. No. 5 mill is a Dyeing Plant and is managed separately by chemical processing department.

CHEMICAL PROCESSING DEPARTMENT:


This department receives the sample from customer for shade matching. It develops the shade in laboratory to match partys sample. Developed shade will send to the party for approval. After approval of the shade customer will give the requirement to the marketing department with count, shade number, quality & delivery data. Marketing department passes above details to production department. Production planning & control department prepares a production plan & arranges for grey yarn, color & chemicals.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls RESEARCH AND DEVELOPMENT DEPT:
The main activity of this department is monitoring the quality assurance activities around clock. Its functions start from testing of raw materials to quality approval of end products. It guides the cotton purchase department to procedure-desired quality of raw materials for production of required products by considering the process involved. Quality

testing is done at each stage of manufacturing process and relative reports prepared. It always keeps in touch with production department. prepared here as per the ISO requisitions. Few of them are: Process control studies. Testing reports. Quality assurance reports. The reports and documents are

Yarn testing reports. RESEARCH AND DEVELOPMENT OBJECTIVES:


Analyzing market complaints & customers feedback & arranging the on time response to the customers Monitoring the quality to meet customer needs. Preparing guidelines for quality acceptance. Designing process control studies to prevent market complaints. Compiling data for competitive performance evaluation. Compiling statistics to study trends for continuous improvement.

Conducting studies for reduction of waste and costs.

QUALITY OBJECTIVES
Revising process control and testing based on market feedback. Making internal quality acceptance criteria more rigid. Compile market request and study trends. Region wise market complaint is analyzed. Conduct training program. Plan daily activities to cover areas at a period of time. Device testing plans to suit product needs. 18

VTU Dept of PG Studies, Belgaum

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls FINANCE AND ACCOUNTS DEPARTMENT:
This section looks after the allocation of funds for various activities accounting of the transactions in monitory terms and manage the cash flow. All the major financial decision is taken at the corporate office. This department at Gokak maintains accounts for various transactions and works and costing.

MAJOR ACTIVITIES:
Cost accounting Financial Accounting Cotton Godown Inventory Stores Godown Inventory Management Central Excise, Sales Tax, Customs, Insurance, Logistic activities etc.

OBJECTIVES:
To maintain the clear-cut information of the transaction and maintain the records and the books of accounts. To show records to Government offices. To show profit, expense, assets & liabilities details at any time. To ensure endurance to accounting principles.

THE ACCOUNTS MAINTAINED ARE:


Cotton Purchase Accounts. Stores Purchase Accounts. Cash or Bank Accounts. Scrap Waste Sales Accounts. Sales Accounts. Different Assets Accounts.

BANKERS:
Union Bank of India Punjab National Bank Standard Chartered Bank

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls COSTING SECTION:


The operations of this section are: To maintain production records and reports from every mill To calculate cost of production Maintenance of cost audit reports Preparation of monthly / yearly budgets.

PURCHASE DEPARTMENT:
This section looks after the purchase of required spares, consumables, dyes, chemicals, etc. This department ensures that right material of right quality and quantity is available at right time. Identification and development of vendor. Timely placement of order. Follow up of orders for supply. Timely payment to suppliers. Periodic review of purchase activities

SEVEN DIFFERENT FILES MAINTAINED HERE ARE:


Spares Material. Material Engineering. Material Packing. Material General. Material Miscellaneous. Material Dyeing. Import.

STORES DEPARTMENT:
Stores Department or Management refers to the management and control of stores materials and related activities. In other words, it refers to the planning, storing, issuing and controlling stores inventory. Other than cotton all other materials are stored like packing material, capital goods, engineering inputs, machinery spare parts, electrical etc. In Stores Department, Weighted Average Method is followed for issuing the materials.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls FUNCTIONS:

Identification of all materials stored. Receipts of incoming stores materials. Inspection of all receipts. Storage and preservation of goods. Issue and dispatch. Maintenance of stores records. Inventory control. Stock taking, i.e. physical verification of goods.

STORES OBJECTIVES:
Confirm supply as per Purchase Order. Ensure quantity and correctness. GRN preparation and approval in time. Verification of bills and Purchase Order amount. To satisfy user and issuing material in time. To co-ordinate with purchase department, suppliers, users and accounts department.

HUMAN RESOURCE DEPARTMENT:


The function of this department is linked with all departments of the Company to maintain good relation between management and employees leading to organization and increase in production. Section Training Activity Assessment coordinating and conducting training for staff and workmen Safety Labor welfare Human / Industry relation Trade unions To monitor the safety activities To monitor the safety activities To monitors human relations and industrial relation To monitor the mutual relationship between management and workers in organization and provide proper negotiation

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls FUNCTIONS OF HRD:


Man power planning Recruitment and selection Grievance handling Industrial Relations Performance Appraisal Placement, training and development Wage and salary Administration Health and safety measures Promotion, demotion, transfer, and retirement

TYPES OF TRAINING:
Pre-employment Refresher Development Functional

TRAINING PROGRAMMES:
Creativity of managers Energy saving and maintenance ISO 9000 refreshers program Fire fighting training Awareness program on Total Quality Management Camp Awareness Programs Leadership And Motivation Class-room Training On-the job Training Refresher Training

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls WELFARE FACILITIES: HOSPITAL:
30 bedded with modern equipments qualified doctors, medical facilities around the clock. Scholarship to children of employees Recreational facilities Quarters, houses for employees School facility (Kannada, Hindi, English, Marathi & CBSC ) to employees children & general public And concision in fees for employees children available

Canteen facility Colony maintenance Temples & Church maintenance Masques marriages Employees co-operative credit society PROCEDURE OF RECRUITMENT AND SELECTION
Workmen: A special committee, which includes managers, HRD managers, training officers, chief medical officer, and production manager, does workmen selection. Generally workmen are recruited from nearby areas. Eligibility: SSLC as minimum qualification, good physical health, now recently MSKL (multi skilled trainee) has been introduced where SSLC qualification is must. After selecting the workmen following phases is to be passed through Phase I: 6 months training Phase II: 6 months training In the period of 12 months training the workmens performance is evaluated by top level management and then given a badli pass, considering the factors like attendance, work practice, behavior and punctuality. The pay given is equal to the permanent employee. In addition to ESI is given. Clerks: Minimum qualification required is BA, B.Com, or SSLC. Competent workman category & promoted as clerks as per the requirements.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


Officers: For the officers post required qualification is diploma, others features looked upon are the experience knowledge skills. Initially advertisement is given in news paper for vacancies. The form is filled by them in which contains all details of qualification, excellence, years of experience, subject knowledge, quality of experience, personality etc. Then selection is done looking at the initial requirements & then called for the interview. After final selection is done by top leader, they have to work for 6 months as a prohibitory period. If the management is satisfied with that employees works in 6 months duration, then his job is confirmed. Managers: Selection is done directly by personal interview by the top level management. Here the qualification and experience counts more for the final selection.

SAFETY DEPARTMENT:
In the industries like Forbes Gokak ltd. Accidents are like very imminent. To core up with the same personnel department has imparted one safety in charge Mr. Sheelavant who looks after if any such accidents take place over the work place. The endeavor of the safety department is going to bring down the possibilities of the accidents and as such to the zero level for the companies like Forbes Gokak Ltd. It is not enough if they put the machines and some workers to operate the same because the accidents are very imminent during those operations. So the Gokak Textiles Ltd. Has adopted the safety department which in terms takes care of both minor and major accidents takes place. As per the data, I have collected the observation shows that the safety department is functioning properly through the accidents taken place in the industry since past in decreasing order every year.

MAJOR ACCIDENTS:
Form No. 12 & 17 (in case of major severe accidents) intimation will be sent the Inspector of the factories, Belgaum Zone Chief inspector of factories, Bangalore. District magistrate or sub divisional officer. Office in charge of the nearest police station. Relatives of the injured person. 24

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


CEO of the Mills has to conform about the accident within 24 hours in the Form No. 12 & 17 as per the Factories Act 1948. In case, if the CEO is absent the same job has to be done by the Chief HRD officer or the in charge of the Safety operations.

MINOR ACCIDENTS
The Safety Department is bound to ensure whether the accident has occurred inside the Mill and during the course of duty, if the accidents has occurred inside the Mills then in charge of the operations should read the report the of, and send it to the Time office within 24 hours after investigating the accidents. Then the time office clerk will enter the details of the accidents in to the accidents register and return the report to the safety officer to file it future action parallel the in charge of the safety will shift the injured to the first aid and inform the ambulances if required doctor over phone and arrange sending him hospital with proper gate pass. Then the time office clerk with check whether the injured has resumed the duty. Then time office clerk will send report immediately through the safety officer to ESIC.

LOGISTICS DEPARTMENT
Logistics management from this total system is the means whereby the needs of customers are satisfied through the coordination of the materials and information flows that extend from the marketplace through the firm and its beyond that to supplies.

Materials Flow Suppliers Procurements Operation s Distribut ion Customer

Requirements Information Flow

DISPATCH DEPARTMENT:
Under this department packed goods are sent to the respective parties. Here packed production is 90 tons per day and sent to the parties according to their specification i.e. through ship or road transport. Under this process, finished goods are first sent to the Packing Department, here goods are packed and sent to the Finished Goods Godowan. According to the contract, goods are sent or dispatched to the respective parties.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls MC KENZIES 7S MODEL


The entire profile of the organization which has been presented in according with McKenzies 7S Model. This 7S Model states that there is seven basic dimensions which executes us to influence complex and large organization.

Structure

strategy

Systems

Shared Values

Skills

Style

Staff

The 7S are STRATERGY The main strategy of Gokak Mill is to get a substantial advantage over competition through quality products and services and to develop quality products to suit specific customer needs in line with changes in demands. It is also trying to consolidate and enlarge manufacturing facilities to meet customers expecting quality standards and reasonable prices.

STRUCTURE The structure of this organization is more democratic and hierarchical for analyzing and taking decision the top management consists of the functional level and lower level management. The coordinators with the different departments are achieved through a set of well-defined procedures and guidelines.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


SYSTEMS The Gokak Mill use complete systemized processes in all fields like manufacturing, quality control, accounting, recruitment etc. There are determined procedures rules and regulations that complement the organization structures. Each system is having its own objective and action plans.

STYLE The organization chat of Gokak Milk shows that it has a well-defined structure and the functions under the various departments clearly mentioned. Gokak mills believe in "MANAGEMENT WITH HUMAN FACE". It has having greater concern for its employees and the society. The suggestions of workers and middle level manager are encouraged.

STAFF The task of acquisition, retention and developing human resources are well handled in Gokak Mills. The people of Gokak Mills are dedicated and result oriented. They believe in mutual trust and confidence and team work.

SKILL The company as the whole is very much skilled with the availability of human power and resources. Gokak Mills develop skills of its employees by continuous training and development programs.

SHARED VALUES With the version of being world class innovations, competitive the company has used all the available resources in an efficient manner. It shares the values like 1. Conduct the business with uncompromising integrity. 2. Observe ethics. 3. Trust, respect individuals. 4. Management with human face etc.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

WORK FLOW MODEL

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1. MIXING:-

Here various fibers like cotton and polyesters are mixed together.The bales coming from out state or local market are first kept in godown. The care is taken to avoid any fire or damage to the bales. Whenever they are required they are brought to the mills by tractors and they kept near the mixing bins.

2. BLOWROOM:-

In the Blow room, Machine, Opens the cotton and cleans them by passing through various openers and beaters various impurities like seeds bit, stones leaves etc., are removed here and cleaned and cotton is passed to carding Department.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


3. CARDING:-

Carding Department is called as Heart of Spinning because without Carding cant spin good yarn. In this process the materials through fine wires point, here impurities remaining in Cotton and Short immature fibers are removed. The Card produces a continuous stand of fibers called as Sliver.

4. COMBER:-

1. Sliver Lap: To Convert carding sliver into lap from which is suitable for Ribbon Lap. 2. Ribbon Lap: Is later fed in the Comber. Here short fibers are extracted along with dust.

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5. DRAWING:-

Here work is done as making the sliver uniform and also makes the fibers parallel to the axis of the Sliver it becomes parallel by improve blending of fibers by drafting several as slivers to require thickness.

6. INTER:-

Making the sliver in to a bobbin by giving some amount of twist to roving which will stand in ring frame.

7. SPINNING:-

In this process the rove is to get the required liniest density and twist is given to get the required strength and effect. The yarns are wounded on cops (spindles) form the section, the cops are sent to post spinning section with the spinning Advice Slip.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


8. WINDING: -

(Post

Spinning

Section)in

process

bobbin caps are on large cones. Which are suitable for markets? Yarn are cleaned and sent on large packages uniformly. The weight of the cones package varies as per customer

requirement.
9. TWISTING:-

Doubling is the process in which two or more single yarns are spiraled uniformly with each other by delivering them to get here a pair of roller and twisting them together, by means of revoking spindle. This is done to get *higher strength resistances increased, and *reduced careless of yarns and *fancy effect. The processed cones are sent to packing section with a slip to counts details advice but cone specification called Winding details from post spinning

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


10. U.V CHECKING: In this process cones are received from the winding department i.e. with the help of creel. This creel is directing exposed to U.V rays that are received during U.V process. In this process there is a sensor used whenever creel is coming in front of that sensor. U.V rays are started and at this time fault will be seen by our naked eyes. The fault maybe like shades in the colors, foreign particles etc. If any faulty packages are observed, the package is rejected and sent to the winding department
11. PACKING:-

The cones are passed through ultra-violet rays cabin for checking if any defects, then they are checked for weight. The approved cones are packed in cartons bags as on pallets and carton are used for exports and bags for domestic sales.

PRODUCT DETAILS
Products are Dyed yarn TECHNOLOGY AT DYEING PLANT

Dyed yarn Yarns

: Pure cotton yarn : Knitting, weaving, towels, socks, sweaters, home

furnishing, industrial yarn and customized yarn Canvas Made ups : Tents, tarpaulins, animal covers and agriculture covers : Terry towels, knitted garments

HTHP package dyeing machine Cone winding Dye lot sizes : 985 kgs, 430 kgs, 215 kgs, 96 kgs, 40 kgs, 19 kgs, 12 kgs, 6 kgs, 3 kgs, 1 kg.

Dye capacity : 15 tons / day Computerized Dye control system 33

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


Equipped with micro processor controls Spectro readings for color continuity Type of Dyestuff : Reactive, VAT & Disperse Dyestuff used : Procion 'HE" Dyes

TECHNICAL SUPPORT FROM CIBA, Clariant, ColorChem, Atul, Dystar and other MNC's. PACKING TYPE

Cones : 5'57" Cone weighing 1 kg Carton : 32 Cones per carton Container Capacity : 20' FCL: 6000 kgs 40' FCL: 12000 kgs

YARNS ON OFFER

100 % Cotton Dyed PC Dyed: Single component as well as solid. Marle/Grindle Yarns Yarns with special finishing

ECO-FRIENDLY PRODUCTS

AZO FREE OKOTEX Certified ISO 9002 Certification

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


SIX SIMPLE STEPS TO ORDER DYED YARNS FROM GOKAK 1. Send swatch for shade matching in minimum dimensions of 2 cm by 2cm or Pantone Shade Reference number 2. Receive lab dips within 9 days for approval. 3. Approve lab dips. 4. Approved lab dip shade numbers are frozen. 5. Place order in multiples of 100 kgs, 215 kgs& 430 kgs (Dye Lots) 6. Arrange for L/C.

Reorder only by shade numbers as they maintain a formal color continuity library. Testing Equipments

1) Color Measurement 2) Fastness Testing


o o o

Wash Wheel for Wash Fastness Testing. Crock Meter for Rub Fastness Testing. Per spirometer for Checking Perspiration Fastness.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls SWOT ANALYSIS


Strengths Opportunities Weaknesses Threats Internal External

Strengths 1. Large capacities of raw material are available to help the downstream products. 2. State of are technology in the spinning mill. 3. Ability to give below 5% user level yarn. 4. Availability of different types of labor. 5. Ability to process small lots. 6. Large capacity of mam made fiber planets. 7. The whole production process done in an efficient way with the work divided among the 7 different mills. 8. Large number of trained work force. 9. Ability to service quality conscious customers. Large logistics chain. 10. 24*7 working capacity for 365 days Weaknesses 1. Lack of value addition. 2. Entire spinning and weaving department are fragmented. 3. Mismatch in the capacities of spinning, weaving and processing Opportunities 1. Huge population of qualified personnel. 2. Emerging biotechnology era. 3. Phasing out of quotas. 4. Proximity to gulf countries, which are emerging as the major consuming countries. 5. Due to agriculture getting mechanized, further large work force will be made available to the mill. Threats 1. Bilateral trade agreement overlooking world trade organization norms. 2. Government foreign policy. 3. International political situation cultural changes. Increasing rates of raw materials. VTU Dept of PG Studies, Belgaum 36

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls 4. Learning Experience


5. In GOKAK TEXTILE MILL learning experience was good. The in plant training has provided me an opportunity to observe the day to day activity; this led to valuable practical experience of management aspects of the plant. It utilizes human, financial, raw material and technological resources to the fullest extent through sufficient planning, organizing, leading and controlling. 6. The work environment is friendly. The company is an illustration of participatory management because the workers are also involved in decision making and its implementation. This in turn has given boost to individual performance. The conflicts are minimal in the organization. The production is a coordination of group effort. The leadership style adapted is considerate towards workers. They show concern for subordinates and attempt to establish a friendly and supportive climate.

7. The In plant training has given me a chance to observe actual production process. The measures are taken to minimize the wastage; the company tries to reduce the cost of production, focuses on controlling pollution.

8. All together it was a good learning experience as we could see the theory which I can study in class is being put for practical use. The first few days were just spent struggling to adjust to their working conditions. Once they became familiar there was a lot of cooperation from various departments in the organization. Some information could not be given by them as it was classified. On the whole it was a good experience.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls INTRODUCTION


The project focuses on, A study of logistics system at Gokak Textile Ltd Gokak Mills, Gokak Falls. Logistics is concerned with getting the products and services where they are needed when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible The formal definition of the word logistics is: - it is the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. Logistics management has the potential to assist the firm in the achievement of both a cost/productivity advantage and a value advantage. The under lying philosophy behind the logistics concept is that of planning and coordinating the materials flow from source to user as an integrated system rather than, as was so often the case in the past, managing the goods flow as a series of independent activities. Thus under a logistics management regime the goal is to link the marketplace, the distribution network, the manufacturing process and the procurement activity in such a way that customers are service at higher levels and yet at lower cost. The project report focuses on the logistics strategies which Gokak textile follows in its day today operations of dispatch of goods. It may be the internal movement or external movement of materials. The study is scheduled through primary data and other information thereby observation in the dispatch department, which focus of various variables, and things that are important to know the logistics strategies and the factors affecting the different modes of transportation. The study caused in the Gokak Textile Ltd, with the detailed study and self observation in the dispatch department. The collected data is analyzed and all suggestions are given according to the analyzed data.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls Statement of the Problem:
The problem selected for the study is A study of logistics system at Gokak Textile Ltd.

Objectives of the Study:


This study will help to find out the importance of logistics in textile industry. And it also helps to know the strengths and weaknesses of different modes of transportation. It will also help to understand the logistics model and logistics strategies followed by Gokak Textile Ltd. The study will also help prospective researchers who take a research on the same topic. The researcher has chosen this topic for the study because of logistics management has the potential to assist the firm in the achievement of both a cost/productivity advantage and a value advantage and researcher want to know the logistics activities. The study will also help the researcher to understand major key roles and functions of logistics or dispatch. It also reveals the logistics strategies of Gokak Textile Ltd.

Scope of the study


The study is related to the Gokak Textiles Ltd,., Gokak Falls. The survey is conducted with vendors or customers of the Company who buys the Yarn from the company.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls METHODOLOGY


There are two types of data collection method which are as follows 1) Primary Data 2) Secondary Data Explanation: 1) Primary Data : It is a data which is conducted by the researcher himself 2) Secondary Data: It is data which has been collected by someone else and it is by the researcher for his study purpose. Methodology refers to the method used to conduct the study and analysis of data. a) Research Design: The type of study is explanatory. b) Sources of data: The field work mainly includes interaction with present vendors. c) Data collection method : Direct Personal Interview Method The data collected through questionnaire. Questionnaire was used as one of the instrument to collect the required data and as a guide to interview the target vendors.

LIMITATIONS OF THE STUDY.


Study is limited to within the organization But some extent I have satisfied by the information what I have got still now Organization has contract based transportation so it was difficult to meet the transport contractor.

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Detail study of the subjects


LOGISTICS SYSTEM OF GOKAK TEXTILE LTD
Under this department packed goods are sent to the respective parties. Here packed production is 90 tons per day and sent to the parties according to their specification i.e. through ship or road transport. Under this process, produced goods are first sent to the Packing Department, here goods are packed and sent to the Finished Goods Godown. According to the contract, goods are sent or dispatched to the respective parties.

STRUCTURE

Logistics Officer

Asst. Logistics Officer

Asst. Holdings

Asst. Holdings

Logistics is concerned with getting product and services where they are needed, when they are also desired. ML/PD includes delivering finished goods to business customers and distributors / dealers. It is also called as Physical Distribution (PD).

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls Key logistic activities:
All of these activities, listed below, may be considered part of the overall logistics process. Inventory management Logistics communication Material handling Order processing Packaging Procurement Return goods handling Warehousing and storage

Logistics System
Logistics Marketing Logistics

Material Storage Raw Materials Components Supplies Manufacturing Finished Goods Storage Business Customers Agencies

Major Cost Centers of Logistics and Marketing Logistics Transportation Warehousing Inventory Order Processing

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Transportation Decisions Transportation Objectives: 1. Superior delivery service 2. Lowest cost Decisions include selection of (1) Transportation modes (2) Individual carriers. Transportation modes Rail, air, road and waterway. Combination / Intermodal transportation: 1. rail road 2. waterway-road 3. waterway rail 4. Air-road. In company they are using only road & waterway transportation. Selection criteria: (1) Speed (2) Availability (3) Cost (4) Dependability (5) Capability (6) Frequency Warehousing Decisions Objectives of Warehousing Improve customer delivery service Increase sales

Channel structure influences warehousing decisions. Factors considered deciding if a company should use (1) Private - Private warehousing by owning warehouse space (2) Public - Public warehousing by renting warehousing space

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Inventory Decisions Objectives Inventory Minimize harmful effects due to deficiencies in the logistical system Meet customer service needs Minimize costs Inventory cost includes Taxes and insurance Inventory risk cost Inventory decisions include: When to order How much to order

When to order? Based on recorder point = delivery lead time X average daily sales / production requirement.

How much to order? (1) Use inventory software (2) Use formula Where, P = Cost of ordering D = Annual Demand C = Annual inventory cost (% of product cost) V = Average inventory cost. Order Processing (OP) Decisions OP Starts with order receipt from a customer and ends when the customer receives the product as per delivery schedule and quantity in the order.

Functions involved in OP: Sales, marketing, finance, marketing logistics, production planning and control, production.

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DISCUSSION Logistics is called by the many names, including the following: Business logistics Distribution Logistical management Supply chain management Supply management Dispatch What these terms have in common is that they deal with the management of the flow of goods or materials from one point of origin to point of consumption, and in some cases even to the point of disposal.

THE MISSION OF LOGISTICS MANAGEMENT The mission is to plan and coordinate all those activities necessary to achieve desired levels of delivered service and quality at lowest possible cost. Logistics must therefore be seen as the link between the marketplace and the operating activity of the business. The scope of the logistics spans the organization, from the management of raw materials through to the delivery of the final product Materials flow Suppliers Procurements Operations Distribution Customers

Requirements information flow

LOGISTICAL INTEGRATION

Suppliers

Physical distribution

Manufacturing support

Procurement

Customers

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INTEGRATED LOGISTICS: Logistics is viewed as the competency that links an enterprise with its customers and suppliers. Information from and about customers flows through the enterprise in the form of sales activity, forecasts and orders. As products and materials are procured, a value added inventory flow is initiated that ultimately results in ownership transfer of finished products to customers. Thus the process is viewed in terms of two inter-related efforts, inventory flow and information flow.

Inventory Flow The management of logistics is concerned with the movement and storage of materials and finished products. Logistical operations start with the initial shipment of a material or component part from a supplier and are finalized when a manufactured or processed product is delivered to a customer. From the initial purchase of a material or component, the logistical process adds value By moving inventory when and where needed. Thus the material gains value at each step. For a large manufacturer, logistical operations may consist of thousands of movements, which ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or customer.

Similarly for a retailer, logistical operations may commence with the procurement of products for resale and may terminate with consumer pickup or delivery. The significant point is that regardless of the size or type of the enterprise, logistics is useful and requires continuous management attention. In order to understand logistics it is useful to divide it into three areas. Physical distribution Manufacturing support Procurement

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Physical distribution: The area of physical distribution concerns movement of a finished product to the customers or marketing depots. In physical distribution the customer or marketing depots are the final destination. Unless the products are delivered where and when needed, a great deal of marketing effort can be wasted. All physical distribution systems have one feature in common: they link manufacturers, wholesalers and retailers and ensure that the product is available. Manufacturing support: The area of manufacturing support concentrates on managing W.I.P inventory as it flows between the stages of manufacturing. A Master Production Schedule is prepared and arrangements are made for timely availability of materials, components, parts etc. Manufacturing support has one significant difference when compared with physical distribution. Physical distribution attempts to satisfy the needs of the customers while manufacturing support involves movement requirements that are under they control of the manufacturing enterprise

Procurement: Procurement is concerned with purchasing and arranging in-bound movement of materials, parts and /or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores. Procurement is also known as purchasing and buying and in some cases inbound logistics. Procurement is concerned with availability of the desired material assortments where and when needed. Within a typical enterprise, the three areas of logistics overlap. The prime concern of an integrated logistical process is to coordinate overall value-added inventory movement. The three areas combine to provide integrated management of materials.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls Information flow:


Information flow identifies specific locations within a logistical system that have requirements. Information also integrates the three operating areas. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. Within individual logistics areas, different movement requirements exist with respect to size of order, availability of inventory, and urgency of movement. The primary objective of information sharing is to reconcile these differences. Logistical information involves two major types of flows: 1. Coordination flows 2. Operation flows 1. Planning and coordination flows: Coordination is the backbone of the overall information system. Coordination results in plans specifying Strategic objectives: Strategic objectives detail the nature and location of customers, which are matched to the required products and services to be performed. Capacity constraints: Capacity constraints coordinate internal and external manufacturing requirements. Capacity constraints identify limitations, barriers, within basic manufacturing capabilities and determine appropriate outsource requirements. Logistical requirements: Logistics requirements specify the work that distribution facilities, equipment and labour must perform to implement the capacity plan. Inventory deployments: Inventory deployments are the interfaces between planning/coordination and operations that detail the timing and composition of where inventory will be positioned. Manufacturing requirements: Manufacturing plans are derived from logistical requirements and typically result in inventory deployment.

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Procurements requirements: Procurements requirements schedule material and components for inbound shipment to support manufacturing requirements. In retailing and wholesaling situations, procurements involve manufacturing requirements. Forecasting: Forecasting utilizes historical data, current activity levels, and planning assumptions to predict future activity levels. Logistical forecasting is generally concerned with relatively short term predictions. The overall purpose of information planning/coordination flow is to integrate specific activities within a firm and to facilitate overall integrated performance.

2. Operational flows: The second aspect of information requirements is concerned with directing operations to receive, process, and ship inventory as required supporting customer and purchasing orders. Operational requirements deal with Order management Order processing Distribution operations Inventory management Transportation and shipping Procurement

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The Council of Logistics Management (CLM) describes logistics management as - it is the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.

Within the firm the challenge is to coordinate individual job expertise into an integrated competency focused on servicing customers. In most situations the desired scope of such coordination transcends the individual enterprise, reaching out to include customers as well as material and service suppliers. Ina strategic sense, the senior logistics officer leads a boundary spanning initiative to facilitate effective supply chain relationships. The excitement of contemporary logistics is found in making the combined results of internal and external integration one of the core competencies of an enterprise. Throughout the history of mankind wars have been won and lost through logistical strengths and capabilities or the lack of them. Even though the generals of the past have understood the critical role of logistics it is only in the recent past that the big organizations have realized its role in the achievement of competitive advantage.

Competitive Advantage: Effective logistics management can provide a major source of competitive advantage. The bases for successes in the marketplace are numerous, but a simple model has been based around the three Cs Customer, Company & Competitor. The source of competitive advantage is found firstly in the ability of the organization to differentiate itself, in the eyes of the customer, from its competition and secondly by operating at a lower cost and hence at greater profit. Seeking a sustainable competitive advantage has become the concern of every manager who realizes the realities of the marketplace. It is no longer acceptable to assume that the goods will sell themselves. An elemental, commercial success is derived either form a cost advantage or a value advantage or, ideally both. The greater the profitability of the company the lesser is the cost of production. Also a value advantage gives the product an advantage over the competitive offerings. Successful companies either have a productivity advantage or they have a value advantage or maybe a combination of the two. There are two main vectors of strategic direction that need to be examined: -

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PRODUCTIVITY ADVANTAGE In many industries there will be a competitor who will be a low cost producer and will have greater sales volume in that sector. This is partly due to economies of scale, which enable fixed costs to spread over a greater volume but more particularly to the impact of the experience curve. It is possible to identify and predict improvements in the rate of output of workers as they become more skilled in the processes and tasks on which they work. Bruce Henderson extended this concept by demonstrating that all costs, not just production costs, would decline at a given rate as volume increased. This cost decline applies only to value added, i.e. costs other than bought in supplies. Traditionally it has been suggested that the main route to cost reduction was by gaining greater sales volume and there can be no doubt about the close linkage between relative market share and relative costs. However it must also be recognized that logistics management can provide a multitude of ways to increase efficiency and productivity and hence contribute significantly to reduced unit costs.
VALUE ADVANTAGE

It is a clich that customers dont buy products they buy benefits. These benefits may be intangible i.e. they relate not to specific product features but to such things as image and reputation. Unless the product or service that we offer can be distinguished in some way from its competitors there is a strong likelihood that the marketplace will view it as a commodity and so the sale will tend to go to the cheapest supplier. Value differentiation can be gained in numerous ways. When a company scrutinizes markets closely it frequently finds that there are distinct value segments. In other words different groups of customers attach different levels of importance to different benefits. The importance of such benefit segmentation lies in the fact that often there are substantial opportunities for creating differentiated appeals for specific segments. Adding value through differentiation is a powerful means of achieving a defensible advantage in the market. Equally powerful as a means of adding value is service. Increasingly it is the case that markets are becoming more service sensitive and this poses a challenge in management of logistics. It is important to seek differentiation through means other than technology. A number of companies have responded to this by focusing upon service as a means of gaining a competitive edge. Service in this context relates to the process of developing relationships with customers through the provision of an augmented offer.

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This augmentation can take many forms including delivery service, after sales service, financial packages, and technical support and so on. This matrix is a useful way of examining the options available for value and productivity advantage: SERVICE LEADER COST & SERVICE LEADER

COMMODITY MARKET

COST

LEADER

In commodity market situations where a companys products are indistinguishable from their competitors offerings the only strategy is to move towards being a cost leader or towards being a service leader. Often the leadership route is not available. This particularly will be the case in a mature market where substantial market share gains are difficult to achieve. Cost leadership strategies have been based upon the economies of scale, gained through greater volume of sales. This is why market share is considered to be so important in many industries. This cost advantage can be used strategically to assume a position of price leader and make it difficult for high cost competitors to survive. This cost advantage can come through effective logistics management. In many industries logistics cost represents such a large part of total costs that that it is possible to make major cost reductions through fundamentally reengineering logistics processes. The other way to come out of the commodity quadrant of the matrix is to seek a strategy of differentiation through service excellence. Customers ion all industries are seeking greater responsiveness and reliability from suppliers; they are looking for reduced lead times, just-in-time delivery and value added services that help them do a better job of serving their customers.

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GAINING COMPETITIVE ADVANTAGE THROUGH LOGISTICS

A firm can gain competitive advantage only when it performs its strategically important activities (designing, producing, marketing delivering and supporting its product) more cheaply or better than its competitors. Value chain activity disaggregates a firm into its strategically relevant activities in order to understand behavior of costs and existing and potential sources of differentiation.

They are further categorized into two types (i) Primary - inbound logistics, operation outbound logistics, marketing and sales, and service (ii) Support infrastructure, human resource management, technology development and procurement

To gain competitive advantage over its rivals, a firm must deliver value to its customers through performing these activities more efficiently than its competitors or by performing these activities in a unique way that creates greater differentiation. Logistics management has the potential to assist the firm in the achievement of both a cost/productivity advantage and a value advantage. The under lying philosophy behind the logistics concept is that of planning and coordinating the materials flow from source to user as an integrated system rather than, as was so often the case in the past, managing the goods flow as a series of independent activities. Thus under a logistics management regime the goal is to link the marketplace, the distribution network, the manufacturing process and the procurement activity in such a way that customers are service at higher levels and yet at lower cost.

REASONS FOR LOGISTICS TO EXIST: Logistics management from this total system is the means whereby the needs of customers are satisfied through the coordination of the materials and information flows that extend from the marketplace through the firm and its operations and beyond that to supplies.

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For example for many years marketing and manufacturing have been seen as largely separate activities within the organization. At best they have coexisted, at worst there has been open warfare. Manufacturing priorities and objectives have typically been focused on operating efficiency, achieved through long production runs, minimized setups, changeovers and product standardization. On the other hand marketing has sought to achieve competitive advantage through variety, high service levels and frequent product changes. In todays more turbulent environment there is no longer any possibility of manufacturing and marketing acting independently of each other. It is now generally accepted that the need to understand and meet customer requirements is a prerequisite for survival. At the same time, in the search for improved cost competitiveness, manufacturing management has been the subject of massive renaissance. The last decade has seen the rapid introduction of flexible manufacturing systems, of new approaches to inventory based on materials requirement planning (MRP) and just in time (JIT) methods, a sustained emphasis on quality. Equally there has been a growing recognition of the critical role that procurement plays in creating and sustaining competitive advantage as part of an integrated logistics process.

In this scheme of things, logistics is therefore essentially an integrative concept that seeks to develop a system wide view of the firm. It is fundamentally a planning concept that seeks to create a framework through which the needs of the manufacturing strategy and plan, which in turn links into a strategy and plan for procurement.

Difference between Supply Chain Management and Logistics Management: 1. Supply chain management is a broader concept whereas Logistics management is a narrower concept. 2. The concept of Supply chain management is relatively new whereas the concept of Logistics management is relatively old. 3. Supply chain management is an extension of Logistics management. 4. Logistics management is primarily concerned with optimizing flows within the organization whilst supply chain management recognizes that internal integration by itself is not sufficient.

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5. Logistics is essentially a planning orientation and framework that seeks to create a single plan for the flow of product and information through a business. Supply chain management builds upon this framework and seeks to achieve linkage and coordination between processes of the other entities in the pipeline, i.e. suppliers and customers, and the organization itself. 6. The focus of Supply chain management is upon the management of relationships in order to achieve a more profitable outcome for all parties in the chain where as the focus of Logistics management is upon the management of resources within the organization. MODAL CHARACTERISTICS RAIL NETWORK:

Since olden times, railroads have handled the largest number of ton-miles. As a result of the early establishment of a comprehensive rail network connecting almost all the cities and towns, railways dominated the intercity freight tonnage till World War II and in some cases of Europe, Asia and Africa they even connected the countries. This early superiority enabled railways to transport large shipments very economically. Railroads have come a long way, as we can see by just the US figures that 54.0% of intercity transport in 1947 was by Railways, 39.2% in 1958, 36.4 % in 1980 and almost 37% in 1992. The period from 1950-1970 saw a tremendous decline in use of railways. The capability to efficiently transport large tonnage over long distances is the main reason railroads continue to handle significant intercity tonnage and revenue. Railroad operations incur high fixed costs because of expensive equipment, right-of-way (railroads must maintain their own track), switching yards, and terminals. However, rail experiences relatively low operating costs. The replacement of steam by diesel power reduced the railroads variable cost per ton-mile, and electrification offers potential for more reductions. VTU Dept of PG Studies, Belgaum 55

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


New labor agreements have reduced workforce requirements, further decreasing variable costs These days rail transport only focuses on transporting specific products, which are best, suited to the requirement. Greatest railroad tonnage comes from raw material extractive industries located at considerable distances. Despite problems, Rail fixed-variable costs are still superior for long distances. Railroads basically concentrate on the container traffic and are becoming more responsive of the customer needs, emphasizing bulk industries and heavy manufacturing. They have expanded their intermodal operations through alliances and motor carrier ownership. Railroads are even concentrating on development of special equipment. There are unit trains which are entire train carrying the same commodity, which are bulk products such as coal or grain. Unit trains are faster, less expensive to operate and quick as it can bypass rail yards and go direct to the products destination. There are also various different types, such as articulated cars for extended Rail chassis, double-stack railcars, have 2 levels of containers, thereby doubling the capacity of each car. It also reduces chances of damage because of their design. These technologies have are being applied by railroads to reduce weight, increase carrying capacity, and facilitate interchange. After a major decline till 1970, Railroads have emerged as a major mode of transport once again since the early 80s because of revitalization of rail network. Evidence suggests that Rail network will be used extensively once again in the 1990s and early 21st century.

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WATER TRANSPORT:

It is the oldest mode of transportation. First it was the sailing vessels, which was replaced by steamboats in early 1800s and by diesel power in the 1920s. Domestic water transportation involves the Great Lakes, canals, and navigable rivers. In every country, fewer system miles exist for inland water than any other transportation mode. The main advantage of water transportation is the capacity to move extremely large shipments. Water transport employs 2 types of vessels. Deep water vessels which are generally designed for ocean and great lakes use and are restricted to deep water ports for access. In contrast, diesel-towed barges, which generally operate on rivers and canals, have considerably more flexibility.

Water transport ranks between rail and motor carrier in the fixed cost aspect. Although water carriers must develop and operate their own terminals, the right-of-way is developed and maintained by the government and results in moderate fixed costs as compared to railways and highways. The main disadvantage of water transport is the limited range of operation and speed. Unless the origin and destination are adjacent, supplement haul by rail or truck is required. The capability to carry very high cargo at an extremely low variable cost places this mode of transport in demand when low freight rates are desired and speed of transit is a secondary consideration. But, water transport on the other hand isnt all that flexible. Labour restrictions on loading and unloading at docks create operational problems and tend to reduce the potential range of available traffic. Also, a highly competitive situation has developed between railroads and inland water carriers in areas where parallel routes exist. VTU Dept of PG Studies, Belgaum 57

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


PIPELINES:

Surprisingly, Pipelines are also one of the major form of transportation medium throughout the world. In 1989, in USA over 53% of all crude and petroleum ton-mile movements were through Pipelines. In addition to Petroleum, other important product transported by pipeline is the natural gas. Pipelines are owned and operated privately in most of the countries and many gas companies act as both gas distributors and contract transportation providers. Pipelines are also utilized for transport of manufacturing chemicals, pulverized dry bulk materials such as cement, flour via hydraulic suspension, and sewage and water within cities and municipalities. Pipelines are very unique in nature compared to other types of transport, such as; they operate on 24-hour basis, seven days a week, and are limited by commodity changeover and maintenance. Unlike other modes, there is no empty Container or vehicle that must be returned. Pipelines have highest fixed cost and lowest variable cost among transport modes. High fixed costs result from right-of-way, construction and requirements for control stations, and pumping capacity. Since pipelines are not labour-intensive, the variable operating cost is extremely low once the pipeline has been constructed. An obvious disadvantage of these pipelines is that they are not flexible and are limited with respect to commodities that can be transported. Experiments regarding transport of solid products are still going on. Coal slurry pipelines are proving to be economical over long distances but it concerns environmentalists, as it requires massive quantities of water.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


AIR TRANSPORT:

Air transport is the newest and the least utilized mode of transport. Its major advantage is its speed, which is accompanied by high costs. A coast-to-coast shipment via air requires only a few hours contrast to days taken by other mean of transportation. The high cost of transport can be traded off for high speed, which allows other elements of logistical design, such as warehousing, inventory to be reduced or eliminated. But still air transport remains more of a potential opportunity than a reality because it is very much underutilized. The high cost of jet aircraft, coupled with erratic nature of freight demand, has limited the assignment of dedicated planes to all-freight operations. However premium carriers provide planes dedicated for freight operations. This premium service started off with documents and has moved onto large parcels, which is an ideal service for firms with a large number of high-value products and time-sensitive service requirements. The fixed cost of air transport is low as compared to rails, water and pipeline. In fact, air transport ranks second only to highway with respect to low fixed cost. Airways and airports are maintained by public funds and terminals are by local communities. The fixed costs of airfreight are associated with aircraft purchase and the requirement for specialized handling systems and cargo containers. But the air freight variable cost is extremely high as a result of fuel, maintenance, and labour intensity of both in-flight and ground crews. Since they require wide-open space, airports are generally not integrated with other means of transport. However more all freight airports are being developed so as to redu ce conflict with passenger operations. No particular commodity dominates the traffic carried by airfreight operations. These operations are carried more on emergency basis than routine basis. Firms usually utilize scheduled or non-scheduled air cargo movements when the situation justifies high cost. Products with greatest potential for regular air movements are those having high value or extremely perishable. When the marketing period for an item is extremely limited, air transport comes into the picture, as it may be the only practical method for logistical operations. VTU Dept of PG Studies, Belgaum 59

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


ROAD TRANSPORT:

Road transport forms an essential part of any transport activity, whether rail, sea or air. It is essential as a supplementary and complementary mode of transport to complete movement by other modes of transport. Eg: From one terminal i.e. the railway station the goods have to be carried to the destination like an area by road. Road transport offers certain advantages like i. Door to door service to customers which neither rail nor neither sea nor air transport can offer. ii. On per unit basis, the cost of making a road is 1/6th that of laying a railway line. iii. Capital investment in case of railways is much less then railways designed to carry equivalent quantum of traffic. iv. Road transport provides employment to six million persons (two million direct and four million indirect) v. There are negative points also to be viewed like: i. As much as 6200 crores are collected in dues but only 10% of this revenue is used for development of roads, which a disadvantage as road transport is still not well organized. ii. Road transport industry is not come of age in India, as there are very few companies, which own the entire fleet of trucks. Single vehicle owners operate most of the road transport.

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Problems in Road Transport: Road transport faces a number of problems. This is evident from the following facts: 1) There is an occasional storage of diesel fuel in the country. 2) Vehicle availability in the country has been problematic. With the recent entry of a number of manufacturers, the situation has improved to some extent. 3) The cost of components and accessories, such as tyres and batteries, has escalated tremendously. 4) The octroi and police check posts are to many, resulting in heavy detention to road vehicles. 5) The present Motor Vehicle Act regulating the issue of licenses and permits and movement of vehicles is very restrictive. It was decades ago to control and regulate traffic. The current requirements of traffic are for development. There are persistent demands from various transport associations for suitable amendments of the Motor Vehicle act. But they do not seem to receive due attention. 6) Conditions on Indian road are very bad and hazardous. They tend to reduce speed of vehicles, which leads to wastage of natural transport capacity. 7) Roadside maintenance and service facilities have not developed though found necessary. 8) The system of national, zonal and state permits restricts free growth of road transport but the system has to be followed.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


Key logistic activities:

Outlined below are the key activities required to facilitate the flow of a product from point of origin to point of consumption. All of these activities, listed below, may be considered part of the overall logistics process. Customer service Demand forecasting/planning Inventory management Logistics communication Material handling Order processing Packaging Plant and warehouse site selection Procurement Return goods handling Traffic and transportation Warehousing and storage

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Q 1] What sort of logistics services you have been make use? a) General parcel b) Transportation c) Courier service d) Aviation

Sources a) General parcel b)Transportation c) Courier service d) Aviation Total

Respondents 5 40 5 0 50

Percentage % 10 80 10 0 100

100 90 80 70 60 50 40 30 20 10 0 Respondents Percentage %

Interpretation: In the above graph shows that 10% of customers are using general parcel services, 80% of customers are using Transportation services, 10% of customers are using courier services, & 0% of customers towards the Aviation services.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


Q 2] What is the opinion about the price of logistics services? a) Low b) Reasonable c) costly

Sources Low Reasonable Costly Total

Respondents 5 35 10 50

Percentage % 10 70 20 100

160 140 120 100 80 60 40 20 0 Low Reasonable Costly Total Percentage % Respondents

Interpretation: In the above graph shows that 10% of customers say price is low, 70% of customers say price is reasonable, & 20% of customers say price is costly.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls


3] Any damages or wear & tear are paid by the company? a) Yes b) No

Sources Yes No Total

Respondents 0 50 50

Percentage % 0 100 100

100 90 80 70 60 50 40 30 20 10 0 Yes No Total Respondents Percentage %

Interprepation: In the above graph shows that 100% of damages are not paid by the company.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

4] To identify the goods what company will provide you? a) Batch number Sources Batch number Receipt number Total Respondents 45 5 50 b) Receipt number Percentage % 90 10 100

Respondents

Yes No Total

Interprepation: In the above graph shows that 90% of batch number is given to recognise the goods, & only 10% of receipt number.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

5] Do get your goods on correct time?

a) Yes Sources Yes No Total

b) No Respondents 46 4 50 Percentage % 92 8 100

160 140 120 100 80 60 40 20 0 Yes No Total Percentage % Respondents

Interpretation: In the above graph shows that 92% of goods reaches at correct time, & 8% of goods reaches will not reach at correct time.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

6] Do you get better service from the logistics which you are using? a) Excellent Sources Excellent Very Good Good Poor Total b) Very Good Respondents 5 35 10 0 50 c) Good Percentage % 10 70 20 0 100 d) Poor

120 100 80 60 40 20 0 Excellent Very Good Good Poor Total Respondents Percentage %

Interprepation: In the above graph shows that 10% customers say excellent, 70% customers say very good, 20% customers say good. About the service they are using.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

7] which company logistics service are you using ? a) TCI Sources TCI VRL M B road services Varma Roadways Total b) VRL Respondents 20 10 10 10 50 c) M B Road services Percentage % 40 20 20 20 100

100 90 80 70 60 50 40 30 20 10 0 TCI VRL M B road services Varma Roadways Total Respondents Percentage %

Interprepation: In the graph shows that 40% of TCI logistics they are using, 20% of VRL logistics they are using, 20% of M B road services they are using, & 20% of varma roadways they are using.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

8] Are you satisfied by the service provided by the logistics ? a) Yes b) No

Sources Yes No Total

Respondents 47 3 50

Percentage % 94 6 100

Respondents

Yes No Total

Interprepation: In the above graph shows that 94% of customers satisfied by the service logistics is providing, 6% of customers are not satisfied by the service..

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FINDINGS
Logistics service used by the customers is that, 80% of them are using transportation service, 10% are general parcel, & 10% are courier service. Here, the opinion about the price of logistics is 70% of customers say price is reasonable, 20% say costly, & 10% say low price.

If any damages or wear & tear happen while exporting the company will not pay for the damages. To identify the goods company will provide batch numbers to the individual products that company produces.

The goods will reach the place on the correct time allotted to them. The vehicles are arranged by the customers or vendors to supply the goods to their places.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

SUGGESTIONS
In the company minor accidents occurs to prevent them emergency service must be provided. The company must buy the cotton from the local cotton producers. The top level management must try to fulfill the needs & wants of the employees as early as possible.

The workers who are on contract basis they must be hire on the talent they perform.. According to the talent of the employees the payment must be allotted. Safety measures must be taken while the work is in progress. The goods must be dispatched on the correct time when the customer is needed.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls CONCLUSION


Gokak Textiles Ltd., is a pioneer in textile industry. Since from 1887 it has made mark in the industrial sector of India. This shows management effectiveness and efficiency which helped to reach new heights. Because of the Textile Mill in the Gokak Falls the standard of living of the people and community has developed a lot. In organization there is contract based transportation Inbound Logistics For inbound transportation they made contract with local transporter to supply the raw material to all 7 mills & to shift the finished goods to godown. For inbound one truck is there for internal transportation. Its cost is based on the daily bases.

Outbound Logistics For outbound logistics the organization dont have own vehicles while making sales the organization will make contract with purchaser that the vehicle will be arranged to shift the finished goods to customers but the transportation charge will be paid by the customer itself. The transportation cost has to paid while making the payments of goods purchased. Or the organization will shift the goods to its marketing depots from the depots customers have to arrange the vehicles to shift the purchased goods to their premises.

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GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

ANNEXURE
QUESTIONNAIRE

Dear Sir / Madam, I VITTHAL B. DASAPPANAVAR the student pursuing MBA at VISVESVARAYA TECHNOLOGICAL UNIVIRSITY (VTU) Belgaum. As a part of my curriculum and course requirement, I have to undergo a major concurrent project entitled as Logistics system towards vendors to be undertaken at Gokak Textiles Ltd., Gokak Falls. I would highly appreciate if you could spare a few minutes of your precious time in answering this questionnaire. This would support & help me in completing my project. The information so collected will be kept confidential and will be purely used for academic purpose only. So I kindly request you to please tick the appropriate (Tick ).

PERSONAL DETAILS :

Name Age .... Address .... Telephone . Sex Occupation .. : Male Female

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Q 1. What sort of logistics services you have been make use? b) General parcel b) Transportation c) Courier service d) Aviation

Q 2. What is the opinion about the price of logistics services? a) Low b) Reasonable c) costly

Q3. Any damages or wear & tear are paid by the company? b) Yes b) No

Q4.To identify the goods what company will provide you? b) Batch number b) Receipt number

Q5. Do get your goods on correct time? a) Yes b) No

Q6. Do you get better service from the logistics which you will be using? b) Excellent b) Very Good c) Good d) Poor

Q7. which company logistics service are you using ? b) TCI b) VRL c) M B Road services

Q8. Are you satisfied by the service provided by the logistics ? b) Yes b) No

Q9. Any suggestions or comments..?

THANK YOU very much for your kind co-operation VTU Dept of PG Studies, Belgaum 75

GOKAK TEXTILES LTD. (Gokak Mills Division) Gokak-Falls

BIBILIOGRAPHY
While preparing project report the following sources are used

Company booklets Gokak Textiles & SP Group Catalogues www.google.com (Search Engine) www.spgroup.com www.gokakmills.com

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