Professional Documents
Culture Documents
I would also like to thank Mr. Pushpraj Satyapaty, Miss Kritika sharma & all other members of
the HR department who accepted my application showing confidence in us & gave us the
opportunity to do our project in their company
I also thank all of the HZL’s other department heads and staff for providing the data and
information on the programs covered in this report. Without their time and interest this project
would not have been possible.
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INDEX
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INTRODUCTION
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LOGISTICS:
Logistics is the management which synchronizes such providing actions as
procurement, production, sale and distribution with demands. It aims to enhance
corporate competitiveness and increase corporate value by realizing and minimization of
its transfer, and reduction of supply costs.
To achieve those objectives mentioned above, collaboration of companies concerned is
essential and development of logistics using supply chain is strongly required.
LOGISTICS MANAGEMENT:
Logistics management is the function of managing the total flow of
materials which includes movement of raw materials from suppliers, in process
within the firm, and movement of finished goods to the customer.
Logistics management covers both physical flow of products as well as
information flows covering reports and documentation relating to goods movement.
Logistics management evolves procedures that meet customer service at the
minimum cost.
Logistics management achieves cost reduction by speeding the flows of materials,
work – in – progress and finished products.
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COMPONENT OF LOGISTICS MANAGEMENT
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LOGISTICS FUNCTION CONSISTS OF FOLLOWING SETS OF ACTIVITIES:
1. ORDER PROCESSING.
Though this activity does not contribute much to total costs, yet it is treated
important because of its contribution to lead time.
2. TRANSPORTATION MANAGEMENT.
It involves –
• Selection of most suitable mode of transport i.e. Rail, road, sea or air.
• buffer stocks
• lead time
• replenishment of stocks
4. WAREHOUSING
• site selection
• space determination
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5. MATERIAL HANDLING
This is concerned with movement of product at the stocking point and it involves
such decisions as :
6. PACKAGING
This is concerned with design of packaging of the product that ensures damage
free movement of the product and is conducive to efficient handling and storage.
7. ACQUISITION
This is concerned with sourcing, planning and ordering of the product in order to
ensure its availability in the right quantity, at the right time, at the right place
and at the right cost. Acquisition, however, does not include other purchasing
activities such as price negotiation, vendor rating etc.
8. PRODUCT SCHEDULING
Product scheduling, however, does not include day – to – day detailed scheduling
carried out by production planner.
9. INFORMATION SYSTEM
Curriculum. Management Schools used to have a fairly low reference to this field but in
the last few years the Course content has been restructured to accommodate chapters on
Logistics Management. Recently the Symbiosis Institute announced a full time program
in Logistics Management and the National University of Singapore initiated a Post
Graduate Course for this growing field two years ago. If the Microprocessor was the
main driver of change in the last Century, Logistics will be the principal driver of change
in this Millennium. Let’s change our mindsets for infinite opportunities
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RATIONALE FOR THE STUDY
The logistics strategy plays major role in the company’s overall performance. It is the
backbone of the company by which the company provides its products to end/final users
which is company’s ultimate objective also. If company is providing products timely, at
very competitive cost and also maintaining good quality of the product, but in case
company is not able to make available its products as when and where it is required by its
users. There is no use of producing good quality and competitive product because it is not
available to its end user as when and where required.
The logistics study always plays very important role to expose companies image and in
distributing products in the market as per one estimate the cost of logistic is about 30% of
the total cost by adopting a suitable and viable logistic strategy, company can bring it out
significantly and that will go a long way in increasing a competitive strength of the
company as prompt and fast distribution channel will be there the customer will get
material timely and as per the requirement. If product is available in the market as when
and where required it will increase the satisfaction level of the customer and end user and
that will automatically attract customer attention and a satisfied customer is company’s
main goal and big achievement.
Though logistics management and strategies share very important role for distribution of
each product in case of urea in our country where faming is the main source of leaving
and urea is very important nitrogenous fertilizers for faming and used at the time of
sowing in large quantum throughout the country its production and distribution is control
by the government and there is shortage of urea in the country, in such circumstances, the
importance of physical distribution is more significant and critical.
In process of logistics management in marketing of Product Company adopt
warehousing, transportation, inventory management and order processing activities which
will be described in detail during the study.
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COMPANY PROFILE
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HISTORY OF HINDUSTAN ZINC LIMITED
Hindustan Zinc Limited was incorporated from the erstwhile Metal Corporation of India
on 10th January 1966 as a Public Sector Undertaking.
In April 2002, Sterlite Industries (India) Limited made an open offer for acquisition of
shares of the company consequent to the disinvestment of Government of India’s stake
(26%) including management control to Sterlite and pursuant to the regulations of SEBI
Regulations 1997 acquired additional 20% of shares from public.
In August 2003, Sterlite Industries acquired additional shares to the extent of 18.92% of
the paid up capital from Government of India (GOI).
BOARD
Shri Agnivesh Agarwal, Chairman.
Smt. Ajita Bajpai Pande, Director
Shri S. K. Mittal, Director
Shri A. K. Singh, Director
Shri Anil Agarwal, Director
Shri Navin Agarwal, Director
Shri M.S. Mehta, Whole-time Director
Shri Tarun Jain, Director
Shri. Akhilesh Joshi, COO & Whole Time Director
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Awards & Recognition
Hindustan Zinc’s initiatives in the various fields like Health, Safety, Environment and
Corporate Social Responsibility have been well recognized by several commendations
such as:
• Golden Peacock Award for Corporate Governance 2007 in metal sector by Institute of
Directors.
• Pegasus Corporate Social Responsibility Award - 2007
• Asian Power Plant of the Year 2007 and also Best Emission Reduction Project in
Asia by Asian Power Charlton Media Group, Singapore to Chanderiya Captive Power
Plant.
• TERI Corporate Social Responsibility Award 2007
• FIMI Social Awareness Award 2006-07
• Bhamashah Award 2006 by Department of Education, Govt. of Rajasthan to
Chanderiya Smelter for the contribution in the field of Education.
• FICCI-SEDF Corporate Social Responsibility Commendation Award 2006.
• National Energy Conservation Award by the Government of India to Rampura
Agucha Mine.
• Golden Peacock National Training Award: 2006 by the Institute of Directors for the
most significant achievement in the field of Quality in Training.
• Golden Peacock Occupational Health & Safety Award 2007 to Chanderiya Smelter
• Safety Innovation Award 2007 by Institution of Engineers (India) for initiating and
implementation of innovative safety practices
• Four Star Rating for Health and Safety Performance by British Safety Council, UK to
Rampura Agucha Mine
• International Safety Award: 2006 by British Safety Council, UK to Zinc Smelter
Debari.
• Golden Peacock Award for Environment Management 2006 to Vizag Smelter.
• ROSPA Gold Award for prevention of accidents to Zinc Smelter Debari
• Environment Excellence Award 2005-06 by FIMI in the mechanized category of
mines to Rampura Agucha Mine.
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• Greentech Environment Excellence Awards 2006 in metal and mining sector -Gold
Award to Chanderiya Smelter, Vizag Smelter and Zawar Mines and Silver Award to
Rampura Agucha Mine.
Highlights
Vision
Mission
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Hindustan Zinc Ltd. operates smelters using, Roast Leach Electro-Winning (RLE),
hydrometallurgical (Debari, Vizag and Chanderiya Smelters), ISP™
pyrometallurgical (Chanderiya Lead Zinc Smelter) and Ausmelt™ (Chanderiya
Lead Smelter) process routes.
CHANDERIYA LEAD ZINC SMELTER COMPLEX [CLZS]
Hydrometallurgical
Zinc Smelter
Hydro I Commissioned in 2005 Roast Leach Electrowinning
Technology with Lead Silver Residue Recovery
210,000 tonnes per annum of Zinc
Hydrometallurgical
Zinc Smelter
Hydro II Commissioned in 2007 Roast Leach Electrowinning
Technology with Conversion Process 210,000 tonnes per
annum of Zinc
• Zero discharge
Products Range
Special High Grade Zinc - Slabs (25 kgs)
(SHG)
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‘THIRD PATY LOGISTICS WHICH IS SIMPLY THE USE OF ANY OUTSIDE
COMPANY TO PERFORM ALL OR PART OF THE COMPANIY’S MATERIAL
MANAGEMENT AND PRODUCT DISTRIBUTION FUNCTION.’
CHARACTERISTICS OF 3PL
WHY IS IT NEEDED?
Advantages
• Cost reduction
• Industry-specific application-‘Build-to-order’.
Disadvantages
• Loss of Control.
CONTRACT DESIGN: Demarcation of Line from where to where service provider shall bear
the responsibility i.e. listing of all major activities &sub activities linking responsibility.
CONTRACT NEGOTIATION: Thorough evaluation of Cost Structure based on Contract
Design.
SENIOR MANAGEMENT APPROVAL
Relationship buying of
Attributes Transaction buying of transport service transport service -3PL
Relationship buying form value adding relationship with carrier (3PL) which lead to creation of an
environment whole exceeds the sum of parts.
Third party logistics is simply to outsourcing the work of over all logistical activities.
The transportation is arranged by the 3PL parties and the 3PL parties ensure to arrange the
equipment from outside agency at their own risk and costs. Through 3PL easy procurement of the
raw-material from the suppliers to physical distribution to customer is achieved.
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THE LOGISTICAL WORK AT HINDUSTAN ZINC LIMITED-
CHANDERIYA LEAD ZINC SMELTER
SCOPE OF WORK
DOMESTIC Primary movement Ex Smelters on door delivery basis.
Sl No. Activities Sub Activities
1 Dispatch 1.1 Take weekly plan from nominated person in Mktg at
Planning Smelter & concerned RM (East/West/North/South).
1.2 Check statutory documents (Road Permit/ Deemed Export
License/ IBA LR requirement) against plan.
1.3 Freeze dispatch plan 24 hours in advance at Smelter
concerned (Debari/Chanderiya/Vizag) .
1.4 Organize Transport Mode (Rail/Road/Sea) for as per plan
for the day/ for the week at Smelter.
2 Order 2.1 Enquire for Dispatch Advice from RM & its Finance team
Processing at Regional level. (East/West/North/South).
2.2 Follow up for release of Dispatch Advice in System.
2.3 Check correctness of Dispatch Advice with regard to
statutory inputs (CST No., Excise Reg No.,
Excise duty , Educational cess, Deemed Export
Clearance,IBA LR etc)
2.4 Checking of QC cleared Product availability in system with
respect to DA. Specifications.
3 Warehousing 3.1 Product wise storage of Goods in warehouse.
3.2 Rechecking of weight of produced Goods.
3.3 Labeling of Goods with Batch No. Bundle No. and Weight.
3.4 Stacking of Goods with adequate space for easy retrieval
during dispatch.
4 Distribution 4.1 Outbound movement of Finished Goods from seller to
customer under Physical Distribution.
4.2 Inbound movement of Raw Materials /Inputs from Suppliers
to customers under Physical Supply.
4.3 Outbound - Arrange FG in warehouse based on Dispatch
Advice.
4.4 Inbound - Arrange moisture determination of heap for
fitness to dispatch concentrate.
5 Transportatio 5.1 Arrangement of transport (Rail/Road/Sea). Prepare allow
n slip in case of road as per dispatch plan.
5.2 Weighment of empty lorry at weighbridge. Arrangement of
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Infrastructure Need at Mines & Smelters
The whole of the above needs of company at its mines and smelters are outsourced.
As it will be economical and suitable for the working. Logistics of Hindustan Zinc limited- chanderiya lead zinc
smelter is having its logistics 100% outsourced.
The benefits of END TO END SOLUTION (3PL) over OWN LOGISTICS SYSTEM can be calculated as the
study done on it.
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Feasibility of 3PL (Third Party Logistics) in EOU
(Export Oriented unit) at Hindustan zinc ltd.
Chanderiya Chittorgarh
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Work profile includes the project study includes End TO End Solution of the cost
effective logistics set up where a 3PL agency will take charge of produced Cargo, inside
the factory, till it is finally shift through port to other countries.
The overall expenses of End To End Solution is compared w.r.t. budgeted 2008-09, LP
2007-08
Total Expenses
2
3
5
7
2
Total Export Qty. for 2008-09 5
CLZS-JNPT for 2008-09 173105
JNPT from july'08 onwards 129829
economical to us.
The graph above explain us about the cost that is 1614 in budgeted 2008-09 and 1584 in P2007-
08, which is more than the end to end solution cost it also reveals the savings that is Rs. 89/MT
in budgeted and Rs. 59/MT in LP 2007-08. The cost incurred under end to end solution is saving
over Rs. 11554781 in budgeted and Rs. 7659911 in LP 2007-08 from July ’08 onwards and it’s
of 9 months only. So, if we had used 3PL for the whole year we can see how fruitful it is.
End to End Solution (3PL) has saved our 5.51% of budgeted cost and 3.72% of LP cost.
So, above all were showing the benefits of END TO END SOLUTION (3PL) over own logistics
system. It reveals a clear cut picture to outsource all the logistical activities from the source of
procurement of raw-material to the physical distribution of finished goods to customers.
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