Final Project Presentation Scm Jsl 30.04.2019

MBA-2018 Global Supply Chain & major Infrastruc ture

Organizati on at a glance

Supply Chain Detail of JSL

Inbound & outbound Logistics Details

Value Chain mapping

Typical Issues of Logistics

Change in Logistics and Transport Strategy

Recomme ndations for Improvem ent

5 4 3 2 1 DEFINE The Objective: Understanding the Logistics & Supply Chain Management of JSL

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MEASURE

The InboundOutbound Logistics cost and total transit time

ANALYSE

The Supply Chain Management System viz.

JSL CASE STUDY

IMPROVE

The Supply Chain Management Process and Logistics Cost

CONTROL

The Overall Cost of Production by proper SCM and Logistics costs.

Slide No.: 2

MBA-2018

JSL FINANCIAL PERFORMANCE

JSL GLOBAL PRESENCE

   

Largest stainless steel manufacturer in India. Operates an integrated stainless steel plant at Jajpur, Odisha. ‘State-of-the-Art’ machinery and engineering from the best of European suppliers, capable of producing globally competitive stainless steel products. Well established distribution network with service centre access in both Domestic and overseas market to optimize customer service and deliveries.

Point to Ponder: JSL uses SCOR (Plan, Source, Make, Deliver, Return(recycle) Model in order to describe supply chain activities from suppliers to customers.

Logistics expenditures for Jindal Stainless Limited Sl. No

Logistics Spending

FY’ 13-14

FY’ 14-15

FY’ 17-18

1

Inbound Logistics

976

1101

108

2

Outbound Logistics

592

676

547

3

Annual turnover in Crs.

11700

12401

12566

Point to Ponder: JSL spends a minimum of average 14.16 % on logistics as compared to international standards of 8%.

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JSL CASE STUDY

Slide No.: 3

Dynamatic Technologies | New Delhi East Coast Magnets | Kolkata Eastern Railways | Bhubaneswar Econship Tech Pvt. Ltd. | Navi Mumbai Electrogears India | Kolkata Ellnbarrie Cryogenics | Visakhapatnam Emerson Process Management | Chennai EPP Composites | New Delhi Fairtech Engineers | Mumbai Fabco Universal | Dellhi Ferrocare Machines | Pune Firpack Textile Mills | Jaipur Flowcon Engineers | Coimbatore Galaxy Motors | Gurgaon Gastek Engineering | New Delhi

Gear & Drives | Bangalore General Electric | Mumbai Global Engineering | Bhopal HEG Limited | Noida Hapag Lloyd India | New Delhi HCL Infosystems | Noida Hewlett Packard | Bangalore Himadri Chemicals | Visakhapatnam Hindalco Industries | Indore IFM Electronic | Kolhapur Indian Oil Corporation Limited | Karnal Indo Electricals | Vadodra ITW India Limited | Medak

A.K.Jain & Brothers | Kolkata A-1 Acid Pvt. Limited | Gujrat 123 Ply | New Delhi PT. Sif Makmur | Jakarta Aasix Nano Technologiees | Mohali ABB India | Kolkata ABR Enviro Systems | Indore Aerotech Systems | Hisar Alfa Laval India Limited | Pune Ambuja Cements Limited | Jaipur Ammonia Supply Company | Ranchi

C&I Systems | Kota CAD Studio | New Delhi Caldery’s India Refractori | Nagpur Carbon Rotofluid | Ahmedabad Carrier Airconditioning | Kolkata Ceat Limited | Mumbai Conserve Tech Systems | Pune Dee Kay Gears | Mumbai Delta Electricals | Ahmedabad Diamond Saw Mills | Sirsa DKS Desiccants | Noida Duex Industrial Systems | Mumbai

J.P Constructions | Hisar Jain Ferro Alloy | Mumbai Jainson Labs | Meerut Jalan Refratech | Dhanbad JDC Traders | New Delhi Kaeser Compressors | Pune Kirloskar Brothers Limited | Kolkata KSB Pumps | Noida Larsen & Toubro | Mumbai

Elecktromag Methods | Mumbai Fairtech Engineers | Mumbai Hitech Lubrication Systems | Faridabad Sunbeam Industrial Products | Mumbai Plazma Technologies | Pune Indo Chemicals & Instruments | Cuttack Siemens Limited | Kolkata Symbiosis | Angul Voltas Limited | Bhubaneswar Shalimar Paints | Cuttack Scientific Traders | Balasore Emerson Process Management | Chennai Rolex Industries | Mumbai Atlas Copco India Limited | Kolkata Dantal Hydraulics Pvt. Limited | Gurgaon Tractors India Pvt. Limited | Bhubaneswar

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Bajaj Electricals | Bhubaneswar Bajrang Enterprise | Jodhpur Balasore Alloys Limited | Balasore Bearing Manufacturing | Mumbai Bells Electrotech | Kolkata Bevcon Wayors Pvt. Limited | Hyderabad Bharat Aluminium Company | Faridabad Bharat Electronics | Bangalore Bhushan Steel Limited | Raigad Blue Star Limited | Mumbai

C&I Systems | Kota CAD Studio | New Delhi Caldery’s India Refractori | Nagpur Carbon Rotofluid | Ahmedabad Carrier Airconditioning | Kolkata Ceat Limited | Mumbai Conserve Tech Systems | Pune Dee Kay Gears | Mumbai

Apex Fluidomatics Pvt. Limited | Naroda Comac India Pvt. Limited | New Delhi Skytech Automation | Coimbatore Jindal Coke Limited | Jajpur Prama Instrumentation | Navi Mumbai Teisen Fire Control | Mumbai Gauss Magnetics | Kolkata Kilner Vacuumation Limited | Sheffield Piper Gmbh | Schwerte Noritake Company Limited | Nagoya Voith Turbo Gmbh | Crailsheim Itipack SRL | Vicenza

Akers AB | Sweden Sinosteel Equipment & Engineering | Beijing Tenova Spa | Castellanza Thermocast Spa | Italy KTB Import-Export | Hamburg Primetals Tech Gmbh | Austria AFS Sedan | France Romani Srl | Italy Jiangsu Gongchang Roll Joint | China Herberholz Gmbh | Ennerpetal Lankhorst Engineered Products | Dublin Toshniwal Industries Pvt. Limited | Ajmer

A.K.Jain & Brothers | Kolkata A.G.Electronics | Mumbai A-1 Acid Pvt. Limited | Gujrat A-One Industries | Haridwar 123 Ply | New Delhi PT. Sif Makmur | Jakarta

J.P Constructions | Hisar Jain Ferro Alloy | Mumbai Jainson Labs | Meerut Jalan Refratech | Dhanbad JDC Traders | New Delhi JCB India Limited | Pune Jindal Automation | Roorkee Johnson Machineries | Nagpur Kaeser Compressors | Pune Kirloskar Brothers Limited | Kolkata KSB Pumps | Noida Larsen & Toubro | Mumbai

Industech Engineering Services | Bhubaneswar Lloyd Insulations India Limited | Kolkata Jindal Steel & Power Limited | Raigarh Caldery India Refractories | Nagpur Crane Control Equipments | New Delhi Essae Technology Pvt. Limited | Bangalore Lincoln Helios India Limited | Bangalore Rotamic Hydraulics Pvt. Limited | Kolkata Moog Motion Controls | Bangalore International Combustion | Aurangabad Yesdee Electronics | Mumbai Tempsens Instruments India | Udaipur Dell International Services | Bangalore Premier Industrial Corporation | Kolkata Shell India Markets Pvt. Limited | Angul Servo Controls & Hydraulics | Belgaum Thermax Limited | Vadodra Yuken India Limited | Bangalore Dee Kay Gears | Mumbai Wika Instruments | Pune Everest Analytics | Mumbai Lightkrafts | Kolkata

A.K.Jain & Brothers | Kolkata A.G.Electronics | Mumbai A-1 Acid Pvt. Limited | Gujrat A-One Industries | Haridwar 123 Ply | New Delhi PT. Sif Makmur | Jakarta

Slide No.: 4

Ship Containers

Raw Material Handling System

Chrome pre-melter

AOD Converter

Mines Railway Wagon

Scrap Yard

Electric Arc Furnace

Scrap Vendors

warehouse Bell Annealing Furnace

warehouse Packaging Unit

warehouse

Plant Warehouse

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JSL CASE STUDY

Customer warehouse

Unpack and quality check at End customer

Slide No.: 5

MBA-2018 Product code

Name of the items covered for inbound logistics

X

Mild Steel Scrap, Nickel cathode, Ferro Nickel

Y

Low carbon Ferro chrome, Ferro silicon, Silicon manganese, Molybdenum

Z

Dolomite lime, casting powder and chrome ore

Port Location

Sl. No

Product Line

Maximum width (MMs)

Thickness (min-mm)

Thickness (max-mm)

1

Slabs

1650

160

250

2

Blooms

200

260

200

3

HR Coils

1650

2.0

12.7

4

HRAP Coils

1650

1.4

105

5

CR Coils

1600

0.3

5.05

6

Plates

1650

12.7

80.15

Plant

Product X

Product Y

Product Z

Scrap

Fluxes

Container Yard

SMTP route

Railway siding

Examination customs Multimodal Route

Examination Local Container Freight Station In plant siding

Plant Warehouse Plant Area Storage Area

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Storage Area

Product no.2

Product no. 3&5

Product no.4

In Plant warehouse

Ferro Alloys & Refractory’s

Customs

Product no. 1&6

Quality

Inspection

Quality

Quality

Fumigation

Quality

Inspection

Inspection

SMTP route

Inspection

Fumigation

Fumigation

Fumigation

Customs

Lashing & Choking

Lashing &Choking

Lashing &Choking

Lashing &Choking

Stuffing & cont.

Warehouse

Warehouse

Warehouse

Customs

CFS & Port area

CFS & Port area

CFS & Port area

In plant siding Plant warehouse and gate in Storage area

Vessel Origin Port Customer Warehouse

Slide No.: 6

MBA-2018 Inbound value chain of JSL Supplier Ware house

1-3 days Shipping Lines

1-2 days

Outbound value chain of JSL 1-2 days

Port

1-3 days

Vessels

Plant

Shipping Lines

1-2 days

1-2 days

Port

28-30 days Plant

Transport 1-3 days

Sl. no. 1

Customs 1-2 days

Inbound Activities Loading at shippers warehouse (depending upon the nature of cargo)

4

Shifting the cargo from warehouse to shipping line yard/truck/railway and warehouse agency Loading into vessel/ truck/railway Voyage transit time to Indian Port/ state boundaries etc.

5

Documentation and customs clearances

2 3

6 7

Transportation of material from port to plant by rail /road or through multimodal route yards. Shifting of material from store to plant for production

28-30 days Supplier warehouse

Port 1-2days

Transport 1-3 days

Timings (No. of days)

Total Transit Time (in days)

Sl. no.

1 to 3

3

1

1 to 2 1 to 2

2 2

28 to 30

30

1 to 2

2

1 to 2 1 to 3

Customs 1-2 days

Outbound Activities

Port 1-2days

Timings Total Transit Time (No. of days) (in days) 1 to 3

3

2

Packing and Lashing at Plant Warehouse Cargo gets handed over to agent of shipping/truck/railway company for advance boking

1 to 2

2

3

Loading of cargo into vessel/truck/railway wagon.

1 to 2

2

4

Voyage time to destination port/state.

28 to 30

30

5

Custom clearances and payment of taxes

1 to 2

2

2

6

Transportation of cargo to warehouses

1 to 2

2

3

7

Shippers site and warehouses

1 to 3

3

The value chain mapping indicates the material flow starting from shipper‘s warehouse to the steel manufacturing plant in India. 30.04.2019

Vessels

Outbound logistics of company A is very challenging since the products are in different sizes in nature and required specific packing as per the requirement of overseas customer.

JSL CASE STUDY

Slide No.: 7

MBA-2018

Material Control

Materials Air/sea Dispatches Arrivals

IT Capabilities

Suppliers

Handling method

Logistics

Handling Knowledge

Storage

Truck drivers

Trailers

Lack seaworthy Packing

Packaging Lack of Business Knowledge

Air Shipment

Loadability

Trucks

Water mode

Documentation

High Inventory

Loose Materials

In transit theft

Quality loss in transit

Full vessel loadings

Old Technology used

End user

Plant

Information Interchange

Payment

Bill Processing

Value Added Products

Storage for prime metals

Govt. Regulation

Low purchase In transit pilferages

Cost for handlings

Plant Location

Scrap Yards For lime &

Poor Handling Non-skilled labors

Manual handling

LEGENDS

 Issues pertaining to Logistics is found using SAP (Actor, Situation and Process) methodology  SAP helped to understand the implications of the issues resulted out of situation, process or the acting agency as depicted in the above diagram.  Inefficiency in any of these 3 elements paves way to increased logistics cost.

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JSL CASE STUDY

Result Actor Situation Process

Slide No.: 8

PREVIOUS SERVICE & WAREHOUSE LOCATIONS

 Creation of new service Centre facilities in Gurgaon, Mumbai, Vadodara and Chennai for better last mile logistic and reduction of ware house cost due to economy of scale in transportation.  Set up of warehouses in Hyderabad and Kolkata that look after the regional markets and a retail outlet for off-the-shelf products has also been set up in Mumbai.  By incorporating new service centres the overall capacity of our processing lines i.e. Slitting, Cut-to-Length and Polishing lines across the domestic network are 290,000, 160,000 & 10,000 tons per annum respectively.

PRESENT SERVICE & WAREHOUSE LOCATIONS

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 The strategic location of all the service centres is catering to the scattered stainlesssteel requirement of India. JSSL’s distribution services meet specific requirements of customers effectively and efficiently.  Apart from this, the company also has a series of satellite marketing offices in all the major cities of India.

JSL CASE STUDY

Slide No.: 9

 JSL depends on Vishakhapatnam port for containerized movement of both Imports and Exports which is at a distance of around 500km as container handling facilities do not exist at both ports Paradip and Dhamara closer to the Plant. So JSL should make joint venture to create container handling facility either at Paradip, or Dhamara port. This will not only reduce logistics cost but also turnaround time significantly for the company.  The 0.8mtpa plant is located in Odisha’s Jajpur district, which is well-connected with road and rail transportation and has proximity to raw materials. But due to unavailability of trucks the inbound and outbound logistic is facing problem. So JSl should choose a logistic vendor which can maintain 100% availability of trucks.  Spread over 800 acres, the plant is not constrained by space so JSL should develop raw material stock yard for easy and timely unloading of containers and trucks for better transportation cost by avoiding detention charges.  Proper equipment should be available at plant and warehouses for material handling so that work can be completed within the stipulated time in turn cost savings due to additional logistics can be avoided.  Paving and concreting of storage area can be carried out for the smooth bulk cargo handlings to avoid material handling losses.  Associate service provider Partner, port agency and National Highway authority should be given the freedom to implement innovative ideas for material transport.  External factors like climatic condition, geographical and political factors of the region also to be taken into consideration pertaining to Logistics & Supply Chain Management.

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JSL CASE STUDY

Slide No.: 10

MBA-2018

Raw material Import Data_JSL

SS Export-Domestic_JSL

HSM Vendor Details

SMS Vendor Details

CRM Vendor Details

Logistics Process Flow_JSL

JSL Corporate Presentation

Declaration: The data and datasheets presented in the PowerPoint presentation is used for Academic purpose only.

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JSL CASE STUDY

Slide No.: 11

MBA-2018

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JSL CASE STUDY

Slide No.: 11