Study of Logistics and Warehousing functions in Central Warehousing Corporation

CENTRAL WAREHOUSING CORPORATION

Jaypee Business School

A Constituent of Jaypee Institute of Information Technology

(Declared Deemed to be University u/s 3 of UGC Act)

A-10, Sector 62, NOIDA, 201 307, INDIA, www.jbs.ac.in

“Study of Logistics and Warehousing functions in Central Warehousing Corporation”

Corporate Internship Report Internship Report submitted as a partial requirement for the award of the two year

Master of Business Administration Programme

MBA 2014-16

Name: PRASHANT SHARMA

Central Warehousing Corporation, Delhi

Corporate Internship Supervisor

Name: Sh. R. S. Shukla, Regional Manager

JBS Faculty Supervisor: Prof. Asit Bandyopadhayay

Start Date of Internship: 15th April, 2015

End date of Internship: 14th June, 2015

Report Date: 23rd June, 2015

http://www.jbs.ac.in/


SELF CERTIFICATE

This is to certify that, I PRASHANT SHARMA have completed the project report titled “ A study of

Logistics and Warehousing functions in Central Warehousing Corporation” under the guidance of

“Sh. R. S. Shukla, Regional Manager” for the fulfilment of the award of MASTER of BUSINESS

ADMINISTRATION from JAYPEE BUSINESS SCHOOL, NOIDA. This is the original piece of work and i

have neither copied it from anywhere nor submitted it earlier elsewhere.

PRASHANT SHARMA

(14609058)

MBA 1st Year


ACKNOWLEDGEMENT

Taking the privilege to express my gratitude towards Sh. R. S. Shukla for providing me an

opportunity to work under their guidance.

It is their valuable efforts and suggestions which has helped me to enrich this type of complicated

knowledge. I would also like to express my gratitude towards PROF. ASIT BANDYOPADHAYAY

(FACULTY GUIDE)who provided me certain useful tips and suggestions and made my project more

substantial.

I would also like to thank all my corporate mentors namely, Sh. A. K. Agarwal/Sh. Deepak Jhulka

(Executive Engineer, CWC, CC, Delhi); Dr. B. B. Singh (AGM), Sh. Ajay Tomar (Superintendent) (CWC,

ICD PPG); Sh. Narendra Kumar (Manager, ICD Loni); Sh. K. D. Sharma (AM, administration), Sh. M.B.

Sharma (CWC,RO Delhi) and Sh. Premram (Warehouse manager, CW, Sahibabad) for helping me

throughout my internship programme.

Last but not the least, I would also like to thank and offer an appreciation to everyone whom I could

not mention here but have directly or indirectly supported and helped me to face this challenge and

complete this project right in time.

PRASHANT SHARMA

MBA 1st YEAR

14609058


TABLE OF CONTENT

PARTICULARS PAGE NO.

Executive Summary 5

Introduction and Objectives 6

Company Profile 7-13

Industry Analysis 14-26

Financial Analysis 27-36

Detail study/research 37-47

Conclusion and Recommendation 48-50

Key Learning 50-51

Contribution to the company 52

References 53


EXECUTIVE SUMMARY

The report is basically prepared for the partial fulfilment of MBA. This study is conducted to

understand “the logistics and warehousing functions in Central Warehousing Corporation”.

This report that I have made consist of two parts; the first part includes the following information:

Firstly, the company analysis of Central Warehousing Corporation is done, that includes the

brief profile of the organization along with its Mission, Vision and Objectives. Also it

includes information about the management of the organization along with the services

provided by Central Warehousing Corporation.

Secondly, the Industry analysis of Logistics and Warehousing sectors is carried out, giving

information about growth drivers, trends, Evolution, SWOT analysis and marketing mix.

Lastly, the financial analysis for last 3 years in comparison with Container Corporation of

India.

In the second part, I have done a study “to understand the logistics and warehousing functions in

Central Warehousing Corporation”. This study helped me in gaining a lot of information about how

the organization works and what all processes are carried out.

In the end, solution is also provided that includes the use of warehouse management system along

with RFID technology, this will eventually help the organization in smooth functioning of different

processes.


INTRODUCTION

Logistics is all about the movement of goods, information and money from one business location to

another. Logistics has played an important role in business economic system. It includes various

activities like warehousing, handling of goods, inventory control, marketing, forecasting and

customer service.

Initially the logistics industry was mainly related to transportation and warehousing. But now in the

current scenario, it covers all the phases of a value chain that includes amalgamation of various

activities like transportation, distribution, warehousing and various value added services such as

packaging, documentation, collection of payment etc.

The continuous advancements in the field of information technology has also given way for logistics

sector to grow remarkably.

Logistics industry in India has large opportunities to grab and to have a continued growth in coming

future.

Warehouses play an important in any supply chain and logistics company. The Indian warehousing

industry is changing its shape with impact of external factors, previously, a warehouse was merely a

godown with 4 walls and a roof but now with the help of technological advancements, the

warehouses have become modernized and fully automated.

The requirement of warehousing space will grow from 400 mn sq.ft. in 2010 to 500 mn sq. ft. in

2015. As the demand for warehousing space increases, there is need for modernization of these

warehouses for better efficiency;optimization of these warehouses can be done by investing in new

advanced technologies that will change the look and feel of the warehouses.

The reports starts with the overview of the logistics and warehousing industry that gives information

about the growth, current market conditions and infrastructure available. This report will give brief

information about what the industry is all about and what are various advantages and challenges of

these sectors in the market.

OBJECTIVES

1. To get the hands on experience of various logistics operations.

2. To understand the logistics industry as a whole and its various aspects.

3. To get live experience of a warehouse management.

4. To understand the company and its various functions.

5. TO understand current working conditions of the organization


COMPANY PROFILE

NAME: CENTRAL WAREHOUSING CORPORATION

INDUSTRY: Warehousing & Logistics

CORPORATE OFFICE:

Central warehousing corporation,

4/1 Siri Institutional Area,

Hauz Khas, New Delhi – 110016

Email – [email protected]

Website – www.cewacor.nic.in

CENTRAL WAREHOUSING CORPORATION (CWC) came into existence in 1957 giving warehousing and

logistics backing to the agriculture sector, it is one of the greatest warehouse administrators in the

nation, providing distribution centres and logistic administrations to a large amount of customers.

Similarly, it offers benefits in the area of transportation and handling of goods.

CWC is handling 474 distribution centres across the nation with a storage limit of 11.8 million tons,

leading to warehouse administration of a variety of items that includes products ranging from agro

based to complex modern items.

The activities of the corporation include food grain warehouses, industrial warehousing, air cargo

complexes and inland clearance depots. Apart from this, CWC also offers services in the area of

clearing and forwarding, handling & transportation, obtainment and conveyance, disinfestation

administration, fumigation administrations and other auxiliary exercises.

Similarly, CWC offers consultancy administration and also provides training for the development of

warehousing base to distinctive organizations.

Initially, the main objective of the corporation was to provide scientific warehousing facilities for the

agriculture sector, but in last 60 years, the company has changed a lot and the mission of the

company includes not only the warehousing services as well as the focus on logistics services and

related activities with lot of value addition.

CWC is one of the leading market facilitator that provides integrated warehousing infrastructure and

other logistic services.

mailto:[email protected]

http://www.cewacor.nic.in/


MISSION To provide reliable, cost effective, value-added and integrated warehousing and logistics solutions in

a socially responsible and environment friendly manner.

VISION To emerge as a leader market facilitator by providing integrated warehousing infrastructure and

other logistic services, supporting India’s growing economy with emphasis on stakeholder

satisfaction.

OBJECTIVES

To meet changing need of agriculture, trade, industry and sectors by providing scientific

warehousing and related infrastructure facilities.

To reduce losses during warehousing, handling and distribution.

To be a major player in providing pest control services using environmental friendly

methods.

To assist in implementation of Warehousing Act, 2007 with a view to extend credit potential

of warehoused goods through banking institutions and NBFCs.

To achieve global presence in the warehousing and logistics field.

To plan and implement Human Resource Development programmes to improve

commitment, motivation and productivity of employees for achieving customer satisfaction.


COMPANY MANAGEMENT

Board of Directors:

Dr. C.V. Ananda Bose , IAS(Retd.), Chairman

Sh. C Viswanath, IAS, Chairman & MD, FCI

Sh. Subhasish Panda, IAS, Joint Secretary, Dept. of Food & Public Distribution

Sh. Virendra Singh

Sh. K.V. Pradeep Kumar, Cochin Oil Merchant’s Association

Sh. Vishwa Ranjan Gupta, Director (Finance)

Sh. J.S. Kaushal, Director (Personnel)

Dr. Rakesh Gupta, GM, PNB

Mrs. Manju Agarwal, Deputy MD (Rural Business), SBI

Sh. Harpreet Singh, Managing Director

Management:

Sh. Sanjay K Rakesh, IAS, CVO

Sh. O.P. Bharti, GM (Insp & Pub.)

Sh. N.K. Grover (Finance)

Sh. A.K. Sharma, GM (Pur)

Sh. I.C. Chadda, GM (Tech.)

Sh. S.K. Sharma, Supdtg. Engineer

Sh. A. S. Gopalan, Deputy GM (Finance)

Sh. Anang Pal, Deputy GM (Comm.)

Human Resource Development

Currently the corporation has a workforce of 5222 employees. In order to reduce the establishment

cost and to have right amount of workforce, as per the target fixed under MOU, VRS scheme was

offered to group ‘D’ employees against which 184 group ‘D’ employees opted for the same.

The government of India directives on reservation of SCs, STs and OBCs are being followed.

At present, the SCs and STs constitute 27.88% of the total strength of the corporation.


Training of Personnel

The corporation lay due emphasis on Human Resource Development (HRD) activities. A number of

need based training programmes in different functional areas were conducted for upgrading the

skills and efficiency of the officials.

During the year, the corporation organized 8 training programmes which was attended by 158

participants from other departments and realized Rs. 22.09 lakhs towards course fee and hostel

charges.

In addition to above, following special training programmes were also conducted during the year:

1. 04 Residential short term training programmes on “Storage pest management and

Fumigation”.

2. 01 Residential programme on “warehouse management and scientific storage”.

3. 11 programmes on “warehouse management and food storage management” were

conducted by various regional offices.

4. Indian Institute of Management (IIM), Indore, organized two 5-day Executive management

development programmes on Agriculture business and supply chain management.

Services Provided:

Storage

CWC provides better storage and handling services for more than 400 commodities

that includes Agricultural produce, Industrial raw material, final goods and variety of

other items.

The modernized storage techniques facilitate more than 200 commodities through a

network of 474 warehouses in India with its 4538 trained personnel.

Ports and Inland stations are equipped with import and export warehousing

facilities.


Disinfestation and bonded warehousing facilities.

ISO containers are being handled, stored and transported to different locations.

ICD/CFS Services

Export :

Export cargos are received.

Aggregation and storage of export cargo.

Customs examine the cargo and supervise in the stuffing of cargo in the

containers.

Import :

Import containers are moved from the port.

LCL and FCL containers are de stuffed at the specified location.

Cargo is examined by the customs.

Bonding Facility

66 Custom Bonded Warehouses are currently operated by CWC with a total capacity

of about 0.42 million Mts.

CWC promoted the concept of Custom Bonded Warehousing to facilitate deferred

payment of custom duty to encourage entrepreneurs and export oriented units.


The Custom Bonded Warehouses are easily accessible as they are well connected

with the port towns for smooth movement of goods to and from the discharge

points.

Air Cargo Complex

As CWC is growing, it has expanded to greater extent and that has led it to get into the

operations of Air Cargo Complexes.

Due to this CWC has become a complete service provider, also known as multi modal

transport operator.

Currently, 3 Air Cargo Complexes are operated by CWC at the International Airports of

Amritsar, Goa, Singanallur and Virugambakkam and also managing cargo warehouse at

Indira Gandhi International Airport, New Delhi.

Container Train Operations

CWC has gained a category – I licence from the Indian Railways for running container

trains on pan India basis.

Currently, CWC is transporting EXIM containers between Loni (Delhi) – J. N. Port (Navi

Mumbai) and Loni – Mundra.

About 300 trains are run by CWC in these sectors.

Pest Control Services and Disinfestation

An additional responsibility was entrusted to CWC by Govt. of India on 23rd March,

1968, to undertake Pest Control Services in parallel to warehousing activities.

Following are some of the area of expertise of CWC in Pest Control Services:

Container Fumigation


Rail Coach Disinfestation

Storage Pest Management

Anti-termite treatments & many more…

CWC provides Pest Control Services to following clients:

Air India

Indian Railways

Airport Authority of India

Indigo Airlines

Jet Airways

AIIMS

VSNL, ONGC, AIR & a many more…

Services are provided at below centres also:

CFS-JN Port

CFS-Panambur (Mangalore)

CFS-Tuticorin (Tamil Nadu).

ICD-Patparganj (Delhi)

CFS-Tuticorin (Tamil Nadu).

CW-Nampally (Hyderabad)

CFS-Chennai

CW-Kakinada (Hyderabad)

CFS-Adalaj (Ahmedabad)

CWC-Regional Office, Bhopal

CFS-Kandla Port (Gandhidham)

CWC-Regional Office, Kolkata

CFS-Vizag

CW-Cochin (Hyderabad)

CFS-Whitefield (Bangalore)

CWC-Regional Office, Mumbai


INDUSTRY ANALYSIS

LOGISTICS INDUSTRY

India has become one of the best suited destinations for logistics service providers. The logistics

sector in India has great potential but still it is yet to be utilized fully. However, there is greater

demand for logistics in India especially because of the growth of the Indian economy and also

because of the introduction of new companies in the sector. The logistics industry has a worth of

almost $100 billion US dollars and will be going to see the growth of up to 9-10% in coming years.

There are various reasons that have led to the growth of the sector; some of them are, raising

investments, mega infrastructure projects, various new regulatory policies and other development

projects.

The logistics industry is witnessing a quick growth and will continue to grow in coming years. This

increase in demand is caused due to consistent growth of the economy and industries such as

automotive, engineering, pharmaceuticals and food processing.

This sector serves as the backbone for some other major sectors like retail, automobile etc. and we

should focus on smooth functioning of this sector. Various organizations are outsourcing their

requirement for logistics to third party logistic players so that they can focus more on their core

functions.

Small entrepreneurs having family owned businesses are the major players in this sector and have

contributed significantly to the sector. They generally focus on short term goals as because they are

of small scale and have limited investment capability.

Bad working conditions, less salaries, less availability of manpower policies has led to the very less

attraction of people towards this sector for employment.

Initially, the companies in the industry were incapable of investing in workforce development and

also the government had not focussed much in this area. There are very less formal training

institutions. But recently, CII- Institute of logistics has taken initiatives and started teaching logistic

courses in the management institutes

Advantages – Logistics Industry

1. Participation of Private Sector

a. Participation of private players in the areas such as rail transport, coastal shipping

has increased to a great extent.

b. As per the 12th five year plan, private partners are going to invest more in the

infrastructure development of roads, airports etc.


2. Evolving Services

a. New specialised services are being evolved in the market.

b. These services will help in higher growth in the logistics sector.

3. Increase in Outsourcing

a. Logistics services are outsourced more and more so that the companies can focus

more towards their core services.

b. Due to globalization, various global 3PL players are reaching Indian market.

4. Maturing end users

a. Organized retail and other sectors have grown to a greater extent and they are

dependent on logistics services.

b. As foreign player participation is increasing, there is need of value added services.

Evolution – Logistics Services

Before 1990s 1990s to 2000 After 2000

Outsourcing of logistics was limited to transportation and warehousing only.

Contracts signed were for a shorter duration only

Emphasis on physical distribution management, so as to reduce inventory and distribution costs.

Various value added services were introduced such as inventory management, custom clearance.

Business functions were integrated to have a smooth end to end supply chain.

Third party logistics (3PL) service providers introduced.

Outsourcing increased and various value added services have come up.

Customers become part of process for value addition.


Logistics Industry – Development Level

Emerging Trends of Indian Logistics Industry

As India is becoming a manufacturing centre, the Indian logistics industry is going to gain high

momentum; this is also because of the improvement of transportation infrastructure. Growth of

manufacturing sector in India is gaining speed and that will result in the growth of the logistics

sector.

This industry will further grow due to the boost in Indian economy and India becoming the first

nation to overcome crisis among other nations.

1. The growth in agriculture sector along with the boost in the industrial sector resulted in

increase of supply chains within the country.

2. As 3PLs are coming in the market, the local companies are outsourcing their logistics

activities, so they focus more on their core activities.

3. The companies within the logistics sector are moving beyond the national boundaries and

this move is expected to gain high importance in coming future.

4. Collaborating efficiently and strengthening alliances are the factors that will help the

logistics sector grow more and more.

5. The companies who are specialized in the logistics field have reached at top in the logistics

industry in a very short duration of time.


6. Some of the new developments are :

a. Multimodal transportation solution

b. Infrastructure facilities for inter-modal transportation

c. Railways have introduced the facility of dedicated freight corridors.

d. Development of large logistics park.

e. Improved coastal shipping facilities.

7. The problems of the companies related to logistics and warehousing can be reduced by the

use of new technologies like RFID etc.

8. As the logistics sector is having a rapid growth, various software have come up in the market

for automating the process and helping the companies to work smoothly.

9. Various ERP solutions have also hit the market.

10. The effectiveness of the logistics is highly influenced by information technology.

Growth Drivers – Indian Logistics Industry

The industry has risen to a great extent in the past 10-12 years. There are various drivers that have

contributed towards this growth of the sector. Some of the major drivers are Government initiatives,

increase in the use of Information Technology, services offered by retail and manufacturing sector

are improved.

1. Government’s Role–The Government of India has played an important role in the growth of

logistics sector by amending various laws and taxes. Following are some steps taken by the

government:

a. Privatization of rail freight is increased.

b. To increase trade, Special Economic Zones (SEZs) are being set up.

c. Inland Container Depot (ICD) for sea freight is privatized.

d. Cargo terminals are added to the Airports.

e. Road infrastructure is improved for better connectivity.

f. For the promotion of export-import trade, bilateral agreements are signed.

g. Import duty on FMCG is revised.

2. Information Technology – Now a days, all the supply chain management functions are using

the benefits provided by IT. EDI (Electronic Data Interchange) facilities are being used at

most of the ports in India. This has reduced the amount of workforce needed and the extra

hard work needed and eventually also helped in putting the operational cost at an optimum

level. Conventional forwarders are moving towards new methods of transportation because


of the innovative logistics solutions that eventually leads to the retention of the customer as

well as the satisfaction of the customer.

3. Third Party Logistics (3PLs) – Most of the logistics sector in the country comprises of third

party logistics and has been the major contributor towards the growth of the sector.

Innovative and customized services are being offered for specific product categories by

these firms. New and best technologies are used so as to have timeliness in the delivery of

goods and services. They are following the rule of 4Rs i.e. Delivering Right product at the

Right time to the Right place at the Right cost. This helped them in overcoming various

challenges and problems.

Key Challenges – Logistics Industry

1. Poor Infrastructure

Transport networks, Information technology, warehousing and distribution facilities are not

integrated properly.

2. Trade Regulations

At different levels a number of regulations are imposed by the national, regional and local

authorities. These rules and regulations are different for different cities and that blocks the

formation of one national network.

3. Trained manpower

3PL, manufacturing and retail sectors lacks skilled and qualified workforce at the practical

level.

4. Lack of training Institutes

The perception of people towards the logistics sector is not that good that resulted in the

less availability of training institutes and further lead to less availability of skilled workforce.

5. Lack of research and development (R&D) of the industry

The logistics industry is very less penetrated, even though we all know the importance of the

logistics industry. With the prioritization of the research and development, we can highlight

the problems of the industry and work towards finding the solutions to those problems.


Government Initiative – Logistics Sector

An infrastructure oriented budget was announced by the Finance Minister that includes the

following main proposals:

1. INR 70,000 crores to be invested in the infrastructure, also includes INR 14,031 crores and

INR 10, 050 crores for roads and railways respectively.

2. Finishing of one lakh kilometre of roads that are currently under construction and also

ordering the development of another one lakh kilometre of road for remote areas to be

properly connected.

3. Implementation of GST (Goods & Services Tax) by 1 April, 2016.

4. Consideration of plug-and-play projects for development of roads, railways, ports and

airports by the Government.

5. Privatization of Ports so that they can come under the companies act.

WAREHOUSING INDUSTRY

The warehousing comprises of storage of goods and are called terminals that are used for activities

such as bulking/de- bulking, stuffing/ de- stuffing, cross docking and temporary storage.

Till 2016, the complete warehousing area is expected to grow at a CAGR of 7-9%, and furthermore

there will be 16-18% increase in the area of organized segment and 6-7% in the unorganized

segment. Mostly the small/medium entrepreneurs are operating the warehouses for the other

companies.

However, the Government has come up with various schemes such as Gramin Bhandaran Yojana,

Private Entrepreneurs guarantee and negotiable warehousing receipts and also there are various

initiatives taken by the government like providing infrastructure status to cold stores, which will

eventually help the warehousing sector to reach to greater levels.

Following are some specialized warehousing skills required by the work force:

1. Picking and Packing

2. Inventory management

3. Usage of warehousing equipment like stackers, pallet trucks

4. Use of Warehouse Management System


Advantages - WAREHOUSING

1. Growth of the economy

a. As the local and EXIM freight volumes increases, there is a growth in the production

and consumption also.

b. As per 12th Five year plan, main focus is on strengthening of investment.

2. Modern Warehousing

a. New and modern warehousing formats are introduced.

b. Sectors like IT, Electronics and telecommunications are expected to grow in coming

future.

3. Increment of outsourcing

a. Many companies have started outsourcing their logistics to focus more towards

their core activities.

b. Due to Globalization, many foreign 3PL companies are ready to invest in the market.

4. FTWZ

a. FTWZ (Free Trade Warehousing Zones) are still less explored and are not yet fully

developed.

b. The FTWZ offers various value addition activities to the various industries.

Evolution – Warehousing

Before 1990s 1990s to early 2000 2005 – 2013


Development of the Indian Economy

Focus changed towards management of end to end supply chain

The warehouse structure was very simple and used for storage purpose only

All the work was done manually, even the good were kept on the floor only.

Globalization occurred and MNCs along with global 3PLs came in the Indian market

Infrastructure of warehousing was improved

Various material handling and storage equipment were purchased

Various world class warehousing centers are developed

Latest material handling equipments are installed

Use of IT systems has increased to a greater extent

Supply chain activities are integrated on an advanced level

Government Initiatives – Warehousing

1. National policy on Handling, Storage and Transportation

a. For the reduction of storage and transit losses of food grains this policy was

introduced in June 2000.

b. With the help of private sector, various facilities such as bulk grain handling, storage

and transportation up to 5.5 lakh MT have been created.

2. Introduction of GST

a. GST (Goods & Services Tax) introduced that helped in reducing the logistics cost.

b. Expected to be helpful for large warehouses.

3. Warehousing Act

a. A Negotiable Warehouse Receipt (NWR) system introduced under The Warehousing

Act, 2007.

b. This will help the global companies to invest in the Indian market.

4. Private Investments

a. Private players are asked by the Government for large scale investment, so as to

develop Logistics Park and Free Trade Warehouse Zones.

b. At the major logistics hub such as Mumbai, Bangalore, Chennai, Hyderabad and NCR,

various Logistics Parks are under development.

5. Development of Infrastructure

a. The main focus in on developing such infrastructure that will lead to decongest road

network.


b. Two major developmental projects of Government are Golden Quadrilateral and

NSEW (North-South-East-West) corridor.

Marketing Mix – Logistics Industry

Marketing Logistics is the term that helps us in understanding the marketing mix for Logistics

Industry. The demand is created by marketing and with the effective flow of goods/services, the

logistics fulfil that demand.

This is mainly an integration of marketing and operations. Every company needs both these

functions to operate with profit.

Marketing Logistics take into account the transportation of goods in a planned manner and results in

the control over distribution mechanism.

It involves:

a. Planning

b. Actual delivery

c. Marketing Information flow

The companies try to implement an effective marketing logistics strategy, focusing on 4Ps of

marketing i.e. Product, Price, Place and Promotion. This helps them to have a competitive edge over

the other companies.

An effective implementation of these 4Ps helps the companies to deliver the goods and services to

the customers and also to focus more towards new potential customers.

PRODUCT

Knowing the right customer and showcasing the products and services to the customers is one of the

functions of the marketing logistics. The services to be provided may vary from customer to

customer as each customer has different needs to be fulfilled. Despite all these differences, on every

transaction, the customer awaits 100% confirmation and reliability. The goal of this aspect includes

on-time delivery, error free invoicing and zero damage.


PRICE

Both internal and external factors are taken into consideration while deciding the prices within an

organization. The price drivers should be recognized by the marketing logistics. Customer’s profile,

type of the product and the order type are some factors that drive the pricing strategy. Marketing

logistics cannot control these factors but still it must analyse these factors to understand their

impact on customer’s decisions. Size based shipping cost, and distance to be covered for the delivery

of the product, are some other factors that drive the pricing strategy. Furthermore, the labour cost

and raw material used in the production process also drives the pricing mechanism in the

organization.

PLACE

This component in marketing logistics helps in the simplification of transactions between the

customer and the logistics provider for an organization.

The execution of logistics is to be done in such a manner that customer never gets to know the

complexities within a logistics process. The background processes related to the logistics delivery to

the customer should never be exposed.

The increase or decrease in the cost is deeply impacted by the location of the factory, warehouses

and the customer.

PROMOTION

It is an important function of marketing logistics process. While introducing a new product in the

market, the company should coordinate the logistics of various marketing material. Let us take an

example, Box of the product should be designed by the arts department and some other outside

party must manufacture those boxes using the designs given by the arts department. This helps the

organization to produce a good quality product with help of different departments working

together.


COMPETITIVE ANALYSIS

List of logistics and warehousing companies in the market

PRIVATE PLAYERS

DHL

BlueDart

Agarwal Packers and Movers

DTDC

Gati

All Cargo Logistics Ltd.

Aqua Logistics Pvt Ltd.

First Flight Courier Ltd.

PUBLIC PLAYERS

Container Corporation of India

Central Warehousing Corporation

SWOT analysis of Logistics Industry

STRENGTH

(1) Existence of dedicated freight corridor.

(2) Automated logistic activities.

(3) Customer satisfaction is the highest priority

(4) Highly skilled workforce.

WEAKNESS

(1) Costly as well as less profitable

(2) Mostly unorganized players in the market

(3) Higher infrastructure cost


OPPORTUNITY

(1) Availability of new National Highways such as Golden Quadrilateral.

(2) Various development projects such as Delhi - Mumbai industrial corridor.

(3) Globalized scenario.

THREATS

(1) Regulatory control

(2) Highly competitive environment with the coming up of MNCs.

(3) It is less profitable and a cost affair.

SWOT analysis of Warehousing Industry

STRENGTH

(1) Availability of Warehousing Development & Regulatory Act (WDRA)

(2) Tax relief under 80(I)(B)

(3) Cold store are given infrastructure status

(4) Agri-warehouses and cold stores are provided with subsidies

(5) 100%FDI

WEAKNESS

(1) Global warehousing infrastructure is insufficient

(2) Complete supply chain is not fully integrated with the warehouses

(3) Unskilled workforce

OPPORTUNITY


(1) Availability of new National Highways such as Golden Quadrilateral.

(2) Various development projects such as Delhi - Mumbai industrial corridor.

(3) Globalized scenario.

THREATS

(1) Regulatory control

(2) Various unorganized players in the market

(3) Less availability of land


FINANCIAL ANALYSIS

Balance Sheet of Central Warehousing Corporation for the financial year 2012, 2013 &

2014

Particulars FY – 2014 FY – 2013 FY – 2012

CAPITAL & LIABILITIES

Share Capital 680,210,000 680,210,000 680,210,000

Reserve Fund Under Section 30 (1)

14,873,003,564 13,742,603,564 12,710,203,564

Reserve for Bad & Doubtful Debts

1,456,143,362 1,337,547,040 862,646,018

Capital Reserve 45,954 45,945 45,954

Self-Indemnification Reserve Fund

160,939,714 146,092,146 132,664,948

Reserve for Benevolent Fund

112,713,136 187,423,247 180,673,329

Reserve for Corporate Social Responsibility Fund

0 5,611,975 3,820,970

Reserve for Research and Development Fund

5,175,563 1,394,423 0

Grant from Govt. of India

94,940,504 132,336,000 50,300,000

Deferred Tax Liability (Net)

591,570,375 311,677,382 1,791,174,012

Outstanding Liabilities 4,283,652,425 4,737,233,878 2,577,981,187

Provision for Pay and Allowances

4,258,929,414 3,815,312,845 4,649,764,388

Provision for Taxation 832,523,334 411,829,874 1,471,322,688

Provision for Dividend 371,856,014 317,324,686 316,003,970

Unclaimed Dividend 809,157 766,867 709,242

Profit & Loss Appropriation Account

99,042 39,384 49,674

TOTAL 27,722,611,558 25,827,449,265 25,427,569,944

PROPERTY & ASSETS

Fixed Assets 12,047,476,670 11,103,731,555 10,703,509,867

Investments (at Cost) 1,106,828,173 1,100,059,373 1,100,059,373

Income accrued on Investments

97,019,616 124,975,489 20,686,701

Self-Indemnification Reserve Fund Investment

160,939,714 146,092,146 121,012,206

Benevolent Reserve 112,713,136 187,423,247 154,846,388


Fund Investment

Current Assets 4,332,015,899 3,496,218,533 2,828,939,636

Loans and Advances 4,141,564,491 3,462,041,250 4,269,533,995

Cash and Bank Balances

5,698,121,012 6,086,310,919 4,436,466,227

unamortized Expenditure

25,932,847 120,596,753 349,611,631

Significant Accounting Policies

TOTAL 27,722,611,558 25,827,449,265 25,427,569,944

PROFIT AND LOSS ACCOUNT – CENTRAL WAREHOUSING CORPORATION

Particulars FY – 2014 FY – 2013 FY – 2012

Expenditure

Warehousing License Fee 6,645,337 5,251,578 8,829,078

Consumption of Chemicals, Covers & Dunnage

135,223,711 152,208,372 154,571,102

Pay & Allowances 5,616,843,628 5,034,165,007 5,077,032,797

Travelling Allowances 51,027,727 48,129,102 38,580,552

Establishment (Others) 395,503,778 365,134,972 351,763,529

Wages 106,859,582 95,067,438 86,990,943

Repairs & Maintenance 334,328,099 285,794,493 242,347,917

Rent, Rates & Taxes 489,007,053 518,468,690 459,723,561

Insurance 138,751,839 135,340,322 126,047,598

Printing & Stationery 24,898,131 22,801,003 20,238,248

Miscellaneous Expenditure

490,463,328 565,892,714 471,886,789

Marketing Facilitation Expenses

3,845,593,012 3,213,503,498 2,487,961,282

CRT Operation Expenses 416,096,172 394,889,529 462,394,963

Bank Charges 659,319 1,558,433 3,445,216

Interest (Expenses) 19,410,629 4,263,247 63,375,903

Director’s Remuneration 1,478,307 1,607,561 1,201,467

Auditors’ Fee and Expenses

8,017,472 6,296,877 4,567,564

Loss on Sale of Assets/Assets Written off

1,438,979 21,707,022 6,463

Bad Debts Written Off 165,314 294,554 4,881

Depreciation/Amortization 329,886,686 383,609,576 252,023,949

Impairment Loss 295,000 234,544 19,647

Reserve for Bad & Doubtful Debts

301,115,455 501,741,101 210,827,397

Provision for Wealth Tax 360,000 360,000 357,213


12,714,068,558 11,758,319,633 10,524,198,059

Profit for the year 2,567,784,537 2,308,659,922 1,662,273,101

TOTAL 15,281,853,095 14,066,979,555 12,186,471,160

Profit For the Year 2,567,784,537 2,308,659,922 1,662,273,101

Les: Prior Period Adjustments

3,037,216 216,326,116 71,062,752

Profit Before Tax 2,564,747,321 2,092,333,806 1,591,210,349

Less: Tax Expenses 954208,509 696,846,772 586,637,512

PROFIT AFTER TAX CARRIED DOWN

1,610,538,812 1,395,487,034 1,004,572,837

INCOME

Warehousing Charges (Income)

7,992,465,965 7,557,245,253 6,773,902,179

Marketing Facilitation Income

4,574,151,155 4,210,277,676 3,345,535,753

Income from CRT Operations

470,403,640 432,767,917 508,544,076

Income from CFSs/ICDs 732,917,825 659,424,481 595,344,821

Income from Pest Control Services

196,712,599 202,567,863 168,147,652

Interest (Income) 666,325,213 574,371,607 494,514,164

Dividend Income 211,618,119 256,487,144 99,152,648

Miscellaneous Receipts 137,862,246 106,774,879 133,821,618

Excess Liability, Provision and Depreciation Written Back

299,132,099 66,903,204 66,385,449

Profit on Sale of Assets 263,834 159,531 1,222,800

Significant Accounting Policies

TOTAL 15,281,853,095 14,066,979,555 12,186,471,160

CASH FLOW STATEMENT – CENTRAL WAREHOUSING CORPORATION

PARTICULARS FY – 2014 FY – 2013 FY – 2012

Net profit before tax 2,564,747,321 2,092,333,806 1,591,210,349

Net Cash from Operating Activities

324,304,168 2,055,541,750 2,102,223,495

Net Cash (Used) in Investing Activities

334,624,171 123,549,557 (700,782,696)

Net Cash (Used) in Financing Activities

377,869,904 282,147,501 (390,297,638)

Net Increase/Decrease in cash and cash equivalent

388,189,907 1,649,844,692 1,011,143,161

Cash and cash 6,086,310,919 4,436,466,227 3,425,323,066


equivalent at the beginning of the year

Cash and cash equivalent at the end of the year

5,698,121,012 6,086,310,919 4,436,466,227

Balance Sheet of Container Corporation of India for the financial year 2012, 2013 & 2014

Particulars FY – 2014 (in crores) FY – 2013 (in crores) FY – 2012 (in crores)

EQUITY & LIABILITIES

Shareholder’s Funds

(a) Share Capital 194.97 129.98 129.98

(b) Reserves and Surplus

6,694.78 6,090.49 5,476.45

6,889.75 6,220.47 5,606.43

Minority Interest 27.52 -

Non – current liabilities

(a) Deferred tax liabilities (Net)

304.98 274.25 243.78

(b) Other Long term liabilities

17.39 10.77 21.64

(c) Long term provisions

28.34 28.29 22.81

350.71 313.31 288.23

Current Liabilities:

(a) Trade Payables 179.29 168.33 121.59

(b) Short Term Borrowings

(0.00) 38.46 -

(c) Other current liabilities

444.84 321.72 327.36

(d) Long term provisions

132.87 170.95 -

757.00 699.46 602.92

TOTAL 8024.98 7,233.24 6,497.58

ASSETS

Non-Current Assets

(a) Fixed Assets

1. Tangible Assets

3020.17 2,734.39 2,351.69

2. Intangible Assets

51.89 48.96 42.01

3. Capital work in progress

241.48 188.33 104.09

4. Intangible - 0.05 0.05


assets under development

(b) Non – Current investments

676.71 368.99 293.10

(c) Long-term loans and advances

743.50 369.33 392.92

(d) Other non-current assets

20.09 12.79 11.98

4,753.84 3,722.84 3,195.84

Current Assets

(a) Inventories 16.65 54.88 8.17

(b) Trade receivables

47.82 28.49 19.59

(c) Cash and bank balances

2698.41 2,945.95 2,757.44

(d) Short-term loans and advances

381.73 372.14 408.53

(e) Other current assets

126.53 108.94 108.01

3271.14 3510.40 3,301.74

TOTAL 8,024.98 7233.24 6,497.58

PROFIT/LOSS – Container Corporation of India

Particulars FY – 2014 (in crores) FY – 2013 (in crores) FY – 2012 (in crores)

Revenue from operations

5,108.53 4,444.99 4,060.95

Other income 369.94 332.57 316.54

Total Revenue 5,478.47 4777.56 4,377.49

Expenses :

Terminal & Other service charges

3,645.60 3,089.13 2776.17

Employee benefits expense

126.38 109.26 99.91

Finance costs 1.01 3.04 -

Depreciation and amortization expenses

193.38 176.32 158.49

Other expenses 258.50 197.12 161.27

Total expenses 4224.87 3,574.87 3,195.84

Profit before exceptional and extraordinary items and tax

1,253.60 1202.69 1,181.65

Exceptional items - - -


Profit before extraordinary items and tax

1,253.60 1202.69 1,181.65

Extraordinary Items - - -

Profit before tax 1,253.60 1202.69 1,181.65

Tax expenses:

(1) Current tax 268.02 241.60 236.39

(2) Deferred tax 29.04 31.47 15.22

(3) Tax adjustment for earlier years

5.21 (0.99) 52.16

Profit(Loss) for the period from continuing operations

951.33 930.61 877.88

Profit(Loss) from discontinuing operations

- - -

Tax expense of discontinuing operations

- - -

Profit/Loss from Discontinuing operations (after Tax)

- - -

Profit/Loss for the period but before share of results of Minority Interest

951.33 930.61 877.88

Less: Share of Minority in Profit/Loss

1.47 - -

Profit/Loss for the Period of the Group

949.86 930.61 -

Earnings per equity share:

(1) Basic 48.72 47.73 67.54

(2) Diluted 48.72 47.73 67.54

CASH FLOW STATEMENT – CONTAINER CORPORATION OF INDIA

PARTICULARS FY – 2014 (in crores) FY – 2013 (in crores) FY – 2012 (in crores)

Net profit before tax 1,253.60 1,202.69 1,181.65

Net Cash from Operating Activities

656.60 910.38 803.98

Net Cash (Used) in Investing Activities

554.25 442.23 (104.00)

Net Cash (Used) in Financing Activities

(343.89) (279.77) (234.16)


Net Increase/Decrease in cash and cash equivalent

(241.54) 188.38 465.82

Cash and cash equivalent at the beginning of the year

2,950.01 2,761.63 2,295.68

Cash and cash equivalent at the end of the year

2,708.47 2,950.01 2,761.50

COMPARATIVE RATIO ANALYSIS OF CENTRAL WAREHOUSING CORPORATION AND CONTAINER

CORPORATION OF INDIA.

CENTRAL WAREHOUSING CONTAINER CORPORATION

RATIOS FY2012 FY2013 FY2014 FY2012 FY2013 FY2014

LIQUIDITY RATIO (a)Current ratio (b)quick ratio

PROFITABILITY RATIO (a)Return on assets (b) return on investment

LEVERAGE RATIO: (a)Debt equity ratio (B) Fixed assets ratio.

0.56 2.07 27% 26% 4.29 0.07

0.64 1.17 21% 40% 4.35 0.04

0.93 1.20 36% 55% 4.50 0.03

0.60 1.11 21% 31% 4.15 0.02

0.81 1.67 45% 37% 3.73 0.05

0.70 1.98 43% 42% 4.60 0.09


ANALYSIS AND INTERPRETATION:

LIQUIDITY RATIO:

These ratios basically help to find out the ability of the concern to meet its current obligations.

Under liquidity ratios we calculate various types of ratios like current ratio, liquid ratio, absolute

liquid ratio etc.

For the purpose of analyzing the balance sheet of CWC and CONCOR we have calculated the current

and liquid ratio under the head liquidity ratio.

(a) CURRENT RATIO:

It shows the relationship between current assets and the current liabilities and the ideal one

is considered as 2:1 but not always as it measures the quantity of assests not the quality

which may not give the true picture.

The current ratio of central warehousing corporation for the FY 2012, 2013 and 2014 is 0.56,

0.64 and 0.93 respectively showing an increasing trend but still the firm is not in the position

to meet its current obligations.

The current ratio of container corporation of India for the same 3 FY is 0.60, 0.81 and 0.70

even the container corporation of India is not in the position to meet its current obligations

with the help of its current assests.

But if we compare the performance of the two organizations the container corporation of

India is still in the better place.

(b) LIQUID RATIO:

It exhibits the relation between liquid assests and the current liabilities. The ideal is

1:1.

The liquid ratio of central warehousing corporation for the FY 2012, 2013 and 2014 is

2.07, 1.17 and 1.20 this shows that central warehousing corporations ability to pay

off its current liabilities using its liquid assests seems good. Though it has been an

declining trend.

The liquid ratio of Container Corporation of India for the same three financial years is

1.11, 1.67 and 1.98 even the liquid ratio of Container Corporation seems good

considering the ideal ratio.

If we make the comparison between the two, Containers Corporation of India is still

in the better place.

PROFITABILITY RATIO:

These ratios basically help the firm to find out the profits earned during the year.

Under these ratios like gross profit ratio, net profit ratios, Return on investment (ROI),

return on assets (ROA) etc. are calculated. For the purpose of our analysis we have

calculated ROI and ROA.


(a) RETURN ON INVESTMENT:

This ratio basically helps to find out whether resources of an organization is being used

efficiently that means whether the firm is earning returns on the investment made.

The ROI of warehousing corporation of India for the FY 2012, 2013 and 2014 is 26, 41

and 55% revealing an increasing trend and showing that ROI of the firm increasing.

The ROI of Container Corporation of India for the same three years is 31, 37 and 42%

showing an increasing trend but in comparison the ROI of warehousing corporation is

better.

(b) RETURN ON ASSESTS:

This ratio measures the ability of the firm to earn profit from the assests employed. It is

measured in terms of percentage.

The ROA of warehousing corporation for the FY 2012,2013 and 2014 is 27, 21 and 36%

respectively revealing an increasing trend though it should be more because higher the

ROI the better it is.

The ROA of Container Corporation for the same three year is 21, 45 and 43%, so if we

make a comparison the ROA of Container Corporation of India is better than

warehousing corporation.

LEVERAGE RATIO

From the leverage ratio we come to know about the long term position of the company. For this we

calculate ratios like capital gearing, debt equity etc.

(a) DEBT EQUITY RATIO

The debt equity ratio shows the relationship between the outsiders fund and

shareholders fund. This basically shows the cushion available to firm when firm

liquidates.

The debt equity ratio of central warehousing corporation for the FY 2012, 2013 and 2014

is 4.29, 4.35 and 4.50 showing an increasing trend and for the container corporation for

the same three FY is 4.15, 3.73 and 4.60.

(b) FIXED ASSESTS RATIO

It exhibits ratio between of fixed assests to long term funds.

The central warehousing fixed assets ratio for the FY 2012, 2013 and 2014 is 0.07, 0.04

and 0.03 and for the container corporation the same ratio for the three years is 0.02,

0.05 and 0.09.


ANALYSIS OF CASH FLOW STATEMENT:

NET CASH FLOW FROM OPERATING ACTIVITIES:

The net cash flow of central warehousing from operating activities for the financial

2012, 2013, 2014 is 324,304,168, 2,055,541,750 and (700,782,696) showing that for the

first two years the there is positive balance but not in the year 2014 as it exhibiting negative

balance.

The container corporation of India’s cash flow from operating activities for the same three

years is 656.60, 910.38, 803.98 respectively (in crores) revealing an positive balance hence

the container corporation of India’s cash flow from operating activities is better.

NET CASH FLOW FROM OPERATING ACTIVITES:

The net cash flow of central warehousing from investing activities for the financial

year 2012, 2013 , 2014 is 334,624,171, 123,549,557 (700,782,696) respectively. For the

first two financial year the cash flow from investing activities is positive but in the year 2014

it the cash flow is negative.

For the container corporation of India the cash flow from investing activities for the same 3

years is 554.25, 442.23, (104.00) respectively (in crores) showing that the for the first two

financial years the balance is positive but not for 2014.

NET CASH FLOW FROM FINANCING ACTIVITIES

The net cash flow of central warehousing for the financing activities for the FY 2012, 2013,

2014 is377,869,904 ,282,147, 501 ,(390,297,638) showing that for the first two years there is

positive balance but in the financial year 2014 the results from investing activities are

negative

The net cash flow of Container Corporation of India from the financing activities for the

same three years is (343.89),(279.77) and (234.16) showing negative results for all the three

years hence in terms of cash flow from investing activities the container corporation of India

stands at better place.


DETAILED STUDY/REASEARCH PROJECT


(A GOVT. OF INDIA UNDERTAKING)

Study of Logistics and warehousing functioning in



SCOPE OF THE REPORT

1. The report helps us in understanding the scenario of Logistics Industry as well as the

Warehousing Industry in India.

2. To understand the functioning of Central Warehousing Corporation.

3. To understand various operations performed at different locations of CWC in the field of

Logistics and Warehousing.

4. To understand the financial status of the organization.

5. To study Export/IMPORT process of various field offices of Central Warehousing

Corporation.

DETAILS of INTERNSHIP PROGRAMME

Joined the Summer Internship Programme at CENTRAL WAREHOUSING CORPORATION, the start

date of internship was 15th April, 2015 and the end date was 14th June, 2015. The duration of the

training programme was of 8 weeks, during those 8 weeks, i undergone trainings at different

locations of CENTRAL WAREHOUSING CORPORATION in Delhi/NCR region.

There is a proper schedule of the organization, according to which the training is carried out.

Following is the schedule of training programme I attended:

S. No. Name of Centre Training Schedule

1. Construction Cell, Delhi 15.04.2015 to 29.04.2015

2. ICD, Patparganj, Delhi 30.04.2015 to 13.05.2015

3. ICD, Loni 14.05.2015 to 28.05.2015

4. Regional Office, Delhi 29.05.2015 to 05.06.2015

5. CW, Sahibabad-II 06.06.2015 To 14.06.2015


Construction Cell, Delhi

Construction Cells are the offices which mainly deal with office work to be done for the construction,

repair and maintenance of warehouses across the country. It is kind of a corporate office; this

corporate office is headed by the Executive Engineer of the organization.

There are 4 Construction cells of CWC for the four main regions i.e. East, West, North and South.

EAST:

Central Warehousing Corporation,

Construction Cell,

Kolkata

Executive Engineer – Sh. S. B. Singh

WEST:


Construction Cell,

Mumbai

Executive Engineer – Sh. Lovelesh Kumar

NORTH:


Construction Cell,

Delhi

Executive Engineer – Sh. A. K. Agarwal

SOUTH:


Construction Cell,

Chennai

Executive Engineer – Sh. G. S. Sudakar

I joined the construction cell at Delhi on 15th April, 2015.

Work done and key learning:

The basic nature of work done at construction cell, Delhi is of handling the projects, in the

management terminology, we call it Project Management. The handling of the project is done by

using techniques like PERT, CPM, GANTT Charts etc.


PERT

PERT (Project Evaluation & Review Techniques) is a tool that is used in statistical analysis for project

management. It helps in representing and analysing a task used for the completion of a project.

PERT basically helps in time management, as it helps in calculating the time required to complete

one task and also the minimum time taken by any project to complete.

Steps of PERT

PERT involves following steps:

1. Milestones and specific activities are identified.

2. The proper sequence of the activities is determined.

3. A network diagram is constructed.

4. The time required by each activity is estimated.

5. The critical path is calculated.

6. Regular updating of PERT chart is needed as the project progresses.

Benefits of PERT

PERT gives us following information:

1. Gives the expected completion time of the project.

2. The critical activities gathered from PERT charts helps in knowing the duration of the project,

as they impact the completion time of the project.

3. Cost as well schedules are monitored with the help of PERT.

4. A large variety of projects can be managed through PERT.

5. Becomes very useful while scheduling and controlling large projects.

CPM

CPM (Critical Path Method), helps in prioritizing a group of project activities. CPM helps in the

construction of a project model and this model includes the following:

1. With the help of Work Breakdown Structure, activities required to complete the project are

listed.

2. The amount of time required by each task for completion.

3. Gives information about the activities dependent on each other.

4. Gives information about the logical end points.


With the help of the above values, CPM helps in calculating the longest path for the activities and

also helps in calculating the activity start/end time.

Key Learning

1. Understood the working scenario of the construction cell.

2. Hands on experience on above mentioned project management techniques.

3. Learned about the amount of paper work involved before the physical construction of a

godown starts.

ICD Patparganj

ICD Patparganj came into existence in 1984 as a Container Freight Station (CFS) with Central

Warehousing Corporation (CWC), a Govt. of India undertaking, as the custodian. In the beginning of

its operations, the work of export/import cargo on LCL (Less Container Load) was handled. Currently,

the centre is headed by Dr. B. B. Singh, Asstt. General Manager.

In April, 1995, this station was given the status of full-fledged ICD and under the customs Act, 1962,

it was declared as an independent port.

A setup of Customs office headed by Sh. , being an important and business potential centre, central

warehousing corporation has started renovating the campus/godown under the received aids from

ministry of Commerce by providing development of roads with paver blocks and replacement of AC

sheets roofing by pre-painted color coated sheets and strengthing of floors, providing CCTV cameras,

air-conditioning of office blocks etc. for all the godowns, the work is in the final stages. A team of

engineers having 2electrical and 2 civil engineers are taking care of renovation work.

I joined the ICD Patparganj on 30th April, 2015 and learned about the export/import process.

The steps of export/import processes are defined below.

Steps used in Export process

1. Filling of Declaration/Annexures at the Service Centre-Customs.

2. Generation of shipping Bill/submission of Check list/allotment of shipping bill no.

3. Handling charges are paid by Exporters to the CWC before arrival of Goods – CWC

4. Carting of goods on presentation of documents – CWC

5. Physical arrival of goods at the station-allotment of entry no. at gate – CWC


6. Goods enter the warehouse verification by Godown incharge – CWC

7. Goods arrival stage attended by inspector (shed) – Customs

8. Shed Supdt. Marks the documents to inspector for examination.

9. Feeding of examination report in the system and allowed Let Export Order (LEO) by Supdt.

(Customs).

10. After LEO, 5 nos. hard copies of S/bills generated – signed by inspector

11. S/bills along with examination report is attached – TR I, TR II, copies handed over

12. Shipping lines prepare stuffing plan based on TR I, TR II & obtain customs approval.

13. Stuffing of goods into nominated containers by CWC under customs supervision.

14. Based on stuffing report customs seals are issued for putting on containers.

15. Customs allow movement of loaded container – Inspector/Supdt.

16. Movement of container by H&T agent of CWC.

17. Inland haulage of container to exit port by Rail through LONI/TKD

18. Inland haulage of container to exit port by road under CWC control.

Steps used in Import process

1. Filling of SMTP by shipping lines at port of landing.

2. Inland haulage of import container to ICD-TKD/LONI by rail.

3. Shifting of import container from LONI/TKD rail terminal to ICD-PPG – CWC

4. IGM filling at Service entry (Customs) ICD PPG – by shipping lines.

5. Filling of declaration/Annexures at the Service Centre by CHA

6. Generation of check list, submission of check list, allotment of B/E no. – Customs

7. First Check

a. Approved by D.C.

b. Generation of single copy B/E for examination

c. Shed Inspector for examination and report

d. Shed Appraiser for examination

e. Group appraiser for examination

f. B/E for Audit on Computer system

g. Assessment by D.C. on computer system

h. Generation of 3 hard copies of B/E & TR-6 challan

i. Payment of duty in bank

j. Shed appraiser for out of charge

k. CWC for payment sheet

8. Second Check

a. Assessed B/E on IAD screen for audit

b. Assessment by D.C. on system

c. Generation of 3 hard copies of B/Es & TR-6 challan

d. Payment of duty by importer in bank

e. Shed inspector for examination and report

f. Shed appraiser for examination and out of charge


g. CWC for payment sheet

9. Issue slip/Gate Pass by CWC

10. Physical movement of container out of ICD Patparganj.

Key Learning:

1. Understood the functioning of the warehouse.

2. Got to know the export and import processes carried out at the depot.

3. Done data entry on the system about the cargo came to the depot.

4. Understood below processes:

a. Verification of goods coming to the warehouse.

b. Feeding of data in the system

c. Marking of the cargo in the warehouse

d. Allocation of space for particular cargo within the warehouse.

e. Generation of Shipping Bills.

f. Stuffing of goods into nominated containers

g. Issue of gate pass for the containers

h. Physical movement of container out of ICD Patparganj.

ICD LONI

Worlds Window Infrastructure & Logistics Private Limited (WWILPL), a strategic alliance partner of

Central Warehousing Corporation, operates and manages the ICD (Inland Container Depot) LONI.

In just 7 years ICD LONI has achieved huge success in providing services to its customers – Rail

operators, importers, exporters, freight forwarders. It is one of the best logistics hub in North India.

It is located near Delhi border in Ghaziabad district. This ICD came into existence on 11th march,

2007.

WWILPL is planning an integrated Logistics Hub, where not only the services like EXIM, domestic

freight handling & transportation are provided but value added services, specialized warehousing

and social amenities will also be provided. Currently, ICD Loni spreads across 27.5 Acres of land with

developed warehousing space of around 2.08 Lac Sq. Ft. An adjacent land of around 100 acres has

been acquired for further developments.

It has recently installed new E-filling system that helps in online transactions.

ICD provides best in class infrastructure, handling and storage services.

I joined ICD Loni on 14th May, 2015 and understood the export/import process.


EXPORT FLOW CHART

Receiving job order from ICD PPG/SRE

Actual arrival of container at ICD Loni

Forwarding note with relevant document submitted at ICD for respective containers

Verifying the container detail with job order & also find the actual no. of containers arrived at ICD.

Differences if any to bring in to notice

Entry container detail in CTR receipt file

Preparation of load plan

Submission of load plan to all concern

Getting wagon train report (WTR) from H&T operator

Preparation of train summary & also verify the detail with forwarding note and other documents

attached

Submission of summary to all concerned

Preparation of rail freight summary & submission of train summary to railway with request to issue

R.R within 2 hrs of departure of train

Preparation of final freight summary for billing


Submission of freight summary to all concerned & file a copy of it duly verified & signed by dealing

assistant & incharge

Billing to all concerned parties

IMPORT FLOW CHART

Import train summary received from rail section RO, Navi Mumbai

Inward summary submitted to operator for inward handling and surveying, discrepancy if any may

be notified by operator for sending confirmation to JNPT, in case of other operator container paper

handed over to CWC

Forwarding job order to ICD PPG with copy indorsed to H&T contractor ICD PPG for movement of

import containers – two more copies (one at out gate and another to operator for issue of Gate

pass)

Landing certificate to be submitted for container destined to ICD Loni on CWC train/carrier bond

Maintenance of record in hard/soft copies for future use

Key Learning:

1. Understood the functioning of Export/Import through train operations.

2. Got to know information about the type of containers being loaded on the train.

3. Understood the export/import train summary received by the ICD office.

4. Understood below processes:

a. Verification of goods coming to the ICD Loni through trains.

b. Issue of forwarding job order as per the cargo received at ICD Loni

c. Verifying container details with job order


d. Feeding of data in the system

e. Preparation of load plan

f. Preparation of train summary

g. Preparation of final freight summary for billing

h. Billing to all concerned parties

i. Issue of gate pass for import containers

j. Physical movement of container out of ICD Loni

Regional Office, Delhi

Regional offices are the offices that handle the administrative work of the organization. Here, all the

administrative work like that of legal issues, recruitment process and other administrative work.

Regional office of central warehousing corporation is situated in Scope Minar Core – 3, 1st Floor,

Laxmi Nagar, Delhi. Regional Office is headed by Regional Manager, Dr. R. S. Shukla.

I joined RO, Delhi on 6th June, 2015. Duration of training here was of 1 week.

Key Learning:

1. Study of various documents related to organization.

2. Got to know the list warehouses across India along with their capacities.

List of warehouses in Delhi

S. No. Warehouse Location Capacity

1. Palam Accompanied baggage warehouse, IGI Airport

500

2. ICD Patparganj Inland Container Depot, Near Ghazipur Village, Patparganj

38105

3. R.P. Bagh G. T. Karnal Road, Opp. SBI Colony, R. P. Bagh

38153

4. Safdarjang Flyover Under Safdarjang flyover, near laxmi bai nagar market

3780


List of warehouses in Noida/Ghaziabad

S. No. Warehouse Location Capacity

1. Greater Noida 2-C, Udyog Kendra, Surajpur 58200

2. Noida Plot C-1A, opp. Transport nagar

15000

3. Surajpur (UP) – I UPSIDC Industrial area, Surajpur

23072

4. Ghaziabad Industrial Area, Ghaziabad 21045

5. ICD – Loni Near Neoli railway station 113407

6. Sahibabad Industrial Area, Sahibabad 23338

3. Prepared some excel reports that includes details about the employees of the organization.

4. Understood the recruitment process of the organization. The recruitment process includes

following steps:

a. Issue of notice regarding vacancy for a particular post in the organization.

b. Advertisement to be printed in recognized newspapers like Times of India,

Hindustan Times & Employment News. Also the advertisement is given online on

particular job portals.

c. Short listing of candidates for the written examination.

d. After written exam, candidates who qualify written exam are called for interview.

e. After the interview process is completed, results of the selected candidates are

uploaded on the organization’s site (http://cewacor.nic.in/index.php).

CW – Sahibabad

Central Warehouse Sahibabad II, is a unit having constructed capacity of godown, 20200 MT,

situated at plot#4, industrial area, Sahibabad, Distt. Ghaziabad, which is very near/opposite to

Sahibabad Railway station and on NH-58 main link road from Delhi to Ghaziabad.

Since the centre is situated almost at Delhi UP border and in a very important industrial area, the

storage capacity of 20200 MT is available for the industrialists to store their raw material/ goods.

Mainly the storage of zinc is carried out. The warehouse manager of the centre is Sh. Premram.

Being an important centre and very business potential centre, central warehousing corporation has

considered the centre to be renovated by providing cement-concrete roads, RCC floors and

replacement of AC sheet roofing by pre-painted polyester coated sheets, the renovation work is in

progress and Sh. Anil Kumar Soam (Asstt. Engineer) is taking care of the work.

http://cewacor.nic.in/index.php


CONCLUSION & RECOMMENDATION

CONCLUSION:

The worth of Indian Logistics Industry in 2012-13 was estimated to be US$ 130 billion. Over the last

five years it has grown at a rate of 16%. The sector includes freight and passenger transportation via

rail, road, air and water and also warehousing and cold storage. The volume of air cargo has grown

about 8.5% from 1999 to 2014.

The National Highway Development Programme of Indian government aims to develop 60,000 km of

National Highways by 2016. The government has also announced various incentives for the private

players who are willing to invest in free-trade warehousing zones and cold storage.

The growth of logistics sector can be driven by such measures. Various growth drivers for this sector

are: rapid developments in sectors such as automobile, pharmaceuticals, FMCG products;

Globalization has helped India in the increase in trade practices; various government initiatives;

outsourcing of logistics has increased to a greater extent. In coming future, some other key trends

that will help the industry to grow will be the entry of more and more global players, increase in

multi-modal logistics service providers and huge investments.

In the current scenario of warehousing sector, the concept of warehouse has shifted from a

‘godown’ – only four wall and shed – to modernized spaces which are highly automated and have

advanced infrastructure facilities. Due to the introduction of GST (Goods and Services Tax), the

warehousing sector has gained momentum and can change its perception among the people that a

warehouse is a costly affair, to a smart warehouse that is providing a cost saving opportunity.

Due to this boom in the warehousing sector, Indian logistics industries should focus more towards

modernization of their warehouses. The growing economy is also one factor that is providing a

platform for the warehousing companies to expand and grow and to compete with the global

leaders of warehousing sector.


RECOMMENDATIONS

Following will be the recommendations from my side for Central Warehousing Corporation, which

might help them to enhance their working conditions and to grow to a greater extent.

1. Warehouse Management Systems should be installed at different locations of Central

Warehousing Corporation.

2. A new technology based on RFID should be introduced in the current system so as to avoid

delays in the manual feeding of data into the systems.

Warehouse Management System

Warehouse management system, a part of supply chain, primarily focuses on controlling the

movement and storage of material in a warehouse. It captures the real time information about how

much the warehouse is full or empty. The WMS (Warehouse management system) consist of

physical warehouses, tracking devices and connection between products station.

This system usually works best with the help of new automatic identification and data capture

technology such as barcode scanners, wireless LANs and RFID (Radio frequency Identification).

The main objective of the WMS is to provide an automated system for the management of

warehouses.

RFID – Radio Frequency Identification

RFID is the transferring of data with the help of wireless technology. The main purpose is to

automatically identifying and tracking tags from the goods. RFID is different than a barcode, as for

barcode, it is necessary to have the tag in the sight of scanner but in case of RFID, there is no need

for tag to be in the sight of scanner.

In 2014, the worth of RFID market is $8.90 billion and it is expected to grow up to $28 billion by

2024.

This technology works by linking the warehouse employees with backend warehouse management

system where all the activities are being recorded with the help of a wireless device used by

employees. The employees will scan the tags on the pallets and the information on these tags will

directly reach the warehouse management system by itself. This helps in reduction of a lot of

manual work and also to have better control over the functioning of a warehouse.


Proposed Solution:

The main solution which can be useful for the organization is to implement a “Warehouse

management System with an integrated RFID – based technology”. This solution will help in better

control over the warehousing and logistics activities by providing a better warehouse management

system which makes the work of a warehouse fully automated and systematic.

Benefits

Following will be benefits for the organization, once they implement a WMS with RFID:

1. Cost of warehouse labour can be reduced to a greater extent.

2. Cost of clerical labour can also be reduced.

3. Physical inventories can be eliminated.

4. The cost incurred in the rectification of human errors made while manually filling the

information can also be reduced.

5. Use of RFID can increase the efficiency of the warehouse.

6. The space of the warehouse can be used properly and effectively.

7. A lot of paper work can be reduced.

8. The accurate information can provided to anyone at any time, giving transparency to the

system.

9. Complexity of large warehouses can be reduced using RFID technology.

10. In comparison to barcode scanners, RFID stores a large amount of information.

Key Learning:

The summer internship programme that I attended for duration of 8 weeks has provided me a lot of

corporate exposure and also helped me in understanding the working culture of a professional

organization.

Following are my key learning which I gained during my internship programme:

Understood the functionality of Central Warehousing Corporation in the field of

Warehousing & Logistics.

By going to different locations of the organization, got to know various different working

cultures.

Understanding the role of various employees at various posts such as Junior Technical

Assistant, Assistant Engineer, Superintendent, and Regional Manager Etc.


At field offices i.e. ICD Patparganj, ICD Loni and CW Sahibabad II, learned about various

aspects of warehousing and logistics, some of these aspects are:

the export/import processes of container movement by trucks from ICD Patparganj

the export/import processes of container movement by trains from ICD Loni

Storage of goods and raw materials in the warehouses at CW Sahibabad II

At Corporate offices i.e. Construction Cell, Delhi and Regional Office Delhi, learned about the

official work being done for the working of the organization. Some of that work is:

How to handle projects using project management techniques such as PERT, CPM

etc.

Updating excel data on a regular basis.

Recruitment process of the organization.

Other administrative work being carried out within the organization.

Study of Financial position of the organization in the market and also the status as compared

to its competitor (Container Corporation of India) in the market.

During the preparation of the Internship report, following are my key learning:

Understanding the origin of Central Warehousing Corporation along with its mission,

vision and objectives.

Knowing the management of the organization.

Understanding the work done by the organization in the area of human resource

development.

Study of various services provided by Central Warehousing Corporation

By doing the industry analysis, I came to know about various aspects of logistics and

warehousing sectors in India. Following topics are covered through industry analysis:

Advantages of logistics and warehousing sectors.

Emerging trends of both the areas

Various growth drivers

SWOT analysis of both the sectors


CONTRIBUTIONS TO THE COMPANY

Helped the corporate mentor at ICD Patparganj in marking of cargo on a sheet manually and

then feeding that information onto the system.

Helped in generating the desired documents (de-stuffing sheet, gate pass, assessment sheet

etc.) for loading and unloading of container as well as the physical movement of containers

to & from the ICD.

At ICD Loni, helped the mentor in filling the details of the train carrying the containers onto

the system and getting the desired documents which are being forwarded to concerned

people and also to the accounts department for payment of charges.

At corporate offices in Delhi, my mentors provided me with documents to be entered into

the excel, I performed this task of data entry and learned about the paper work being done

in the offices.

This report is to be submitted in the office also, and with this report I have given a

recommendation of a Warehouse management system along with RFID technology, if they

implement this, it will help the organization in following ways :

Less paper work

Accurate information

Less manual work in warehouses

Less time consuming

Increases the efficiency of the warehouse


REFERENCES


http://www.ibef.org/download/indian-logistics-industry-gaining-momentum.pdf

http://www.icdloni.com/index.html

http://www.oocities.org/icddelhi/patparganj.htm

https://en.wikipedia.org/wiki/Central_Warehousing_Corporation

https://www.kpmg.com/IN/en/services/Tax/unionbudget2015/Documents/KPMG-Union-

Budget-TL-PoV-2015.pdf

https://en.wikipedia.org/wiki/Warehouse

http://www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-warehousing-

segments-in-India

http://www.safeducate.com/PDF/KPMG%20Report%20on%20Logistics,%20Transportation%

20and%20Warehousing%20(2013-2017,%202017-2022).pdf

http://www.concorindia.com/


http://www.ibef.org/download/indian-logistics-industry-gaining-momentum.pdf

http://www.icdloni.com/index.html

http://www.oocities.org/icddelhi/patparganj.htm

https://en.wikipedia.org/wiki/Central_Warehousing_Corporation

https://www.kpmg.com/IN/en/services/Tax/unionbudget2015/Documents/KPMG-Union-Budget-TL-PoV-2015.pdf

https://www.kpmg.com/IN/en/services/Tax/unionbudget2015/Documents/KPMG-Union-Budget-TL-PoV-2015.pdf

https://en.wikipedia.org/wiki/Warehouse

http://www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-warehousing-segments-in-India

http://www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-warehousing-segments-in-India

http://www.safeducate.com/PDF/KPMG%20Report%20on%20Logistics,%20Transportation%20and%20Warehousing%20(2013-2017,%202017-2022).pdf

http://www.safeducate.com/PDF/KPMG%20Report%20on%20Logistics,%20Transportation%20and%20Warehousing%20(2013-2017,%202017-2022).pdf

http://www.concorindia.com/

Study of Logistics and Warehousing functions in Central Warehousing Corporation

Documents

Transcript of Study of Logistics and Warehousing functions in Central Warehousing Corporation