A Study On Warehousing and Physical Distrubution in Shanthi Feeds PVT LTD

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A STUDY ON WAREHOUSING AND PHYSICAL DISTRUBUTION IN

SHANTHI FEEDS PVT LTD


INTRODUCTION OF THE STUDY

The warehousing component of physical distribution refers to the process of receiving inbound


shipments, storing merchandise, breaking down bulk materials, and ecommerce fulfilment for delivery to
the customer.The functions of warehouse management is to provide cost effective storage, in a suitable
condition for the organization’s products and materials to enhance effective rendering of customer
services. The existence of a warehouse is justified by the extent to which it contributes to the efficiency
and effectiveness of physical distribution functions.
The geographical location of a warehousing operation should be determined by production sites and the
physical position of target markets. However, in some developing countries as Nigeria, political conditions
have some times over ride economic arguments and facilities such as warehouse, go downs, assembly
areas and buying points for the government organization have been sub-optimally sited.

Warehouse managers have a number of important challenges which include, determination of most
appropriate unit loads optimizing space utilization, reducing the movement of labour, equipment and
product/materials to minimum, establishing a safe, secure warehousing environment and keeping cost to
minimum.

An earlier resource pack described the decisions that must be taken when a company organizes a channel
or network of intermediaries who take responsibility for the management of goods as they move from the
producer to the consumer. According to Piasacki (1978), initially a system to control movement and
storage of warehouse management system (WMS) is expanding to including light manufacturing,
transportation management, order management and complete accounting system. To use the grandfather of
operation, material requirement planning, (MRP) as a comparison, material requirement.

Planning started as a manufacturing environment. What is clear is that the expansion of the over lap in
functionality between warehouse management system and other functional area in physical distribution of
goods from the producer to the consumer.

Even through warehouse management contributes to gain added functionality, the initial core functionality
of a ware house management system has not changed. The primary purpose of a warehouse management
system is to control the movement and storage of material within an operation and process the associated
transactions.
The detailed set up and processing within a warehouse management system in my area of case study
Unilever Nigeria Plc Aba, varies significantly from one material render to another, however the basic logic
will use a combination of item, location quantity, unit of measure and order information to determine
where to stock, where to pick and in what sequence to perform these operations.

INDUSTRY PROFILE

Logistics management is an essential component of supply chain management that aims at catering to
customer demands. Logistics management involves planning, controlling and implementing of the
movement and storage of goods and services from the point of origin to the ultimate customer. It enables
organizations to cut down on expenses and bolster customer satisfaction. The genesis of the term
‘logistics’ was military-based that encompasses how military personnel procured, stored and moved army
equipment and supplies. The term is now pervasively used across the business industry, especially by
organizations in the manufacturing sectors.

The process of logistics management is initiated from garnering raw materials to the final stage of
delivering finished products for customers to avail. Logistics management entails formulating strategy,
planning and implementing it to address customers’ demand while also considering prevailing market
condition. Logistics management collaborates activities, such as raw materials procurement, production
process, and distribution of finished products. It aims at providing an organization competitive and
increased product value for fulfilling customers’ expectations. It also looks at minimizing holding excess
of inventory and supply costs.

Logistics undertakes the task of safe delivery of the product from one point to another, and, thus, it is
responsible for the security of the product. Most logistics organizationtakes insurance on the products
being transported. Logistics comprises material handling, warehousing, transportation and packaging the
goods and controlling the inventory. Logistics involves dealing with both finished and unfinished
products.

Logistics can affect an organization in more than one way. If the logistics of the organization is not
efficient enough, it would lead to increased costs and low customer satisfaction. On the other hand,
efficient logistics serves to reduce the costs for the organization and increase the customer service,
therefore, helping in increasing the profitability.
Logistics have always been associated with human society though the scope of logistics has changed over
time. The word ‘logistics’ has originated from the Greek language, which alluded to words such as ‘logos’
which refers to counting or reasons, ‘logistike’ referring to the art of calculation. The word ‘logistics’ also
has its source in the French language. In French, ‘logistique’ covers words such as transport,
accommodation or supply of troops, whereas in English context, ‘logistics’ was used in the field of
military.

WAREHOUSE IN PHYSICAL DISTRIBUTION

The 14th edition of the APICS Dictionary defines distribution as: “The activities associated with the
movement of material, usually finished goods or service parts, from the manufacturer to the customer.
These activities encompass the functions of transportation, warehousing, inventory control, material
handling, order administration, site and location analysis, industrial packaging, data processing, and the
communications network necessary for effective management.”82

The process involves order processing, warehousing and transportation. Distribution logistics is important
because quantities of production vary with time and demand. It refers to the type of logistics that delivers
the finished products to the customer

According to the Warehousing Education and Research Council’s (WERC) WERCipedia (WERC’s online
dictionary) a warehouse is a “Place for receiving, storing and shipping material and merchandise and
making changes to their packaging or configuration.”83 A Distribution Center is defined as: “a building,
structure or group of units used to store goods and merchandise that are to be delivered to various places
on an as-needed basis.”

WERC also provides a definition of logistics as: “Logistics plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods, services, and related information between the
point of origin and the point of consumption in order to meet customers" requirements.”85 Logistics is the
historical term for what most companies call distribution today—getting products or people from one
location to another. Distribution Centers and Warehouses are part of this logistics network.

Warehouse and Distribution Center are commonly used interchangeably. This is erroneous. Although both
facilities have the same basic functions as we will discuss in this chapter, a Distribution Center focuses on
getting products in and out quickly, whereas a Warehouse may store products for an extended period of
time. For this reason, when we discuss inventory turns later in the inventory management chapter,
remember that because of the length of storage, a Distribution Center should have much higher inventory
turns numbers than a Warehouse. It involves sending the produced merchandise to the retail stores through
distributors and wholesalers. The logistics system of Pepsi that delivers the foods and beverages of the
company to the retailers is an example of distribution logistics.

The changing face of supply chain management and the increase in smaller/individual orders and the
processing of returns have also had an impact on the size and layout of Distribution Centers.

COMPANY PROFILE

Shanthi Feeds Limited is an Indian multinational food products company headquartered in Coimbatore,


India. The company was started in 1988 and is involved in broiler farming, hatcheries, feed mills for
poultry and cattle, farming of soya, corn and wind energy projects. It markets and exports broiler chicken,
frozen chicken, chicken eggs. The company has a production capacity of nearly 47 million birds per
annum

Shanthi Feeds Private Limited is an unlisted private company incorporated on 10 April, 2006. It is
classified as a private limited company and is located in Coimbatore, Tamil Nadu. Its authorized share
capital is INR 35.00cr and the total paid-up capital is INR 35.00 cr.

Shanthi Feeds Private Limited's operating revenues range is Over INR 500 cr for the financial year
ending on 31 March, 2021. It's EBITDA has increased by 196.53 % over the previous year.
Shanthi Feeds was the first to introduce integrated operations, both at the level of organizing farmers and,
also, bringing in all process parameters, including the production of poultry feed, under its control. There
are 4 hatchery units, 5 parent bird farms, and over 2000 commercial farms for broiler birds under the aegis
of Shanthi Feeds. Today, with a market share of over 25% and a production capacity of over 450000
parent chicks and birds, Shanthi Feeds is poised for even greater achievements in the years to come.

Mr. R. Lakshmanan, with inspiration and encouragement from his beloved father, Mr. K. Ramasamy, an
employee of the animal husbandry department, Tamil Nādu, started a small poultry farm as a means of self
employment way back in 1988. There are no parallels what this dynamic hardworking man, dedicated to
the poultry industry, could achieve in the following years by his visionary leadership and commitment to
quality.

Pappampatti, the native village of Mr. R. Lakshmanan, is a dry and arid area where there is limited
cultivation and the people were really struggling to make both ends meet. Therefore, giving gainful
employment to the local villagers was a primary concern of the managing director when he thought of
expanding the activities.

Shanthi Feeds was the first to introduce integrated operations, both at the level of organizing farmers and,
also, bringing in all process parameters, including the production of poultry feed, under its control. There
are 4 hatchery units, 5 parent bird farms, and over 1000 commercial farms for broiler birds under the aegis
ofShanthi Feeds Farm. Today, with a market share of over 25% and a production capacity of over 450000
parent chicks and birds, Shanthi Feeds Farm is poised for even greater achievements in the years to come.
The Rashtriya Gaurav Award, bestowed on our Managing Director in 1997 by the All-India Achievers
Conference, is a testimonial to his unwavering commitment to quality. With scientific farming practices
and innovative production capabilities, we strive to realize his vision to be among the best in the industry.

VISION

Health in the current context has gained a larger-than-life perspective, with the nutrition value in every
food becoming a key factor to consider. At Shanthi Feeds, we have always believed in the power of health.
Our principles of growth are therefore strongly rooted in convention, for we believe that traditional
farming brings with it the rare knowledge of retaining the essence of natural food. Our chicken processing
units are modern and equipped with the latest range of equipment and machinery. This has helped us
maintain stringent quality standards and scale up our production capacities.

“HEALTH CREATION IS PERHAPS THE MOST ENDURING FORM OF WEALTH CREATION "

MISION

Ensure that health and nutrition remain the focus of our organization by combining best material,
practices, and system driven processes to enhance efficiency and create an atmosphere where people are
able to discern the tangible benefits of healthy living by choosing nutritious, yet tasty food

SERVICE

 Retailing
 Hatchery
 Poultry feed
 Soya
 Cattle feed
 Chicken processing
 Wind energy
 Corn
Theoretical background of the study

Processes:

Receiving: This is the process of unloading incoming truck, identifying, registering and sometimes
repacking. This involves the physical activity of unloading incoming transports, checking deliveries
against purchase orders and recording. Depending on the agreement of both parties, future checks may
include quality control

Put away: This is when goods are moved from unloading dock to the storage area.Storage-in bulk or pick
Activities at the warehouse affect goods in storage. For instance, the amount of stocks has to be counted to
verify inventory quantities.

Order selection and picking or packing: Goods are stored in the warehouse to be used later when
needed. The needs for goods are made when orders are placed for them. When orders are placed, the
goods are selected and picked according to their identifiable locations. The goods are then made ready for
transportation to the point of need

Goods outward or dispatch:The goods are put together at the dispatch area and loaded onto the outbound
vehicles, or picked up for use according to their size and place of need.

Classification of warehouses

The nature of warehouses within the supply chain varies, and can be adopted in various forms of
classification, among other things including the following:

By the product type:Examples include perishable products, frozen foods, explosive items, Small spare
parts and security items.

By the stage in the supply chain:A warehouse could be meant to carry material, work in-progress or
finished goods depending on where it is situated in the supply chain.

By geographic location:A warehouse is situated to serve only a certain geographical area like a region, a
whole state or even the whole world.
By function:That is whether to just hold inventory or for sorting.

By company usage:It could be meant for use by just one company, or shared amongst various

Users in handling the supply chain:

Replenish: If inventory levels of the pick storage drop to certain amounts, it is replenished with stocks
from the bulk storage.

Pick Up: on order for need of an item in storage, either full pallets are picked from the bulk area of
storage, or smaller quantities are picked from the pick area of storage.

Ship: The picked items are packed, consolidated and staged for shipping.

Cross-dock:Some goods do not make their way into storage. Such goods, upon receipt are transferred to
the shipping dock for shipment to point of need.

TYPES OF WHAREHOUSE

Cold Storage. Cold storage warehouses are used for the storage of food items that require temperature-
controlled storage. Cold storage warehouses can be a standalone facility that is capable of storing either
climate-controlled storage (i.e., fresh fruits, meats, or vegetables) or frozen storage. One of the critical
considerations for operating a Cold Storage Facility is the compatibility of the material handling
equipment used with the items being stored and the lower temperatures associated with cold storage
facilities. A cold storage facility may be collocated with a Dry Food Storage facility.

Dry Food Storage Warehouse. A Dry Food Storage Warehouse stores staple items such as canned
goods and other food items that do not require a “cold” temperature for long term storage. Just as there are
considerations for the equipment to facilitate the operation of a cold storage facility, the equipment used to
move dry storage food items require compatibility with the food items being stored. For example, electric
or propane forklifts are better for a dry food facility than gas-powered forklifts

Climate Controlled Facility. This type of facility differs from a Cold Storage Facility in that it is
not designed or certified to store food items. In the Kansas City, Missouri area, there are a number of
caves used for climate-controlled storage of items as diverse as old Hollywood movie props to old vintage
films and film canisters. The purpose of this type of facility is to provide protection for the items in the
warehouse that may deteriorate if stored at “room temperature” or in changing climatic conditions

Warehousing/DistributionChallenges

Instant Customer Service Requirements. As a result of the ability to order on the Internet,
more directtocustomershipmentsareoccurringeachdayfromwarehousesanddistribution
centres. This has several impacts on the facilities. The first is that the distribution centred
tohavepallet storage, case
storage,andbulkstorageareasinthefacilitynowhavetoalsohaveanindividualitempickingandstorag
eareainthe

Smallertransactions.Thishasalreadybeendiscussedinotherareas.Thenumberofsmaller
transactions requires more space in the facility to handle the individual
itempickingandpacking. Thisalsorequiresadditionalpersonnelinthefacility.

Valueaddedservices.Wehavealreadydiscussedtheuseofvalue-addedservicesinthedistribution
centres.Thepressuretoaddtheseservicesimpactsthespaceutilizationinthe facility and the
number of personnel required to add these services to the offerings of thefacility to improve
customer satisfaction. When Polo added embroidery services, theyhad to carve out space
from the existing distribution centre rather than add on to thefacility

Smaller orders. The trickledown effect from the change in customer support requirements was
the realization that customers ordering over the Internet were ordering smaller quantities of
products. These smaller quantities required new picking techniques and new picking areas to
support individual item orders vice rather than the traditional case lot or pallet load shipments
from the warehouse or distribution centre to the stores
Warehousing/Distribution Centre Functions:

 Receive: This is the function of unloading the inbound freight. The accuracy
of the performance of this function sets the stage for the success of the
overall operations. If the receiving function is not properly performed, the
product and product quantities will not match what should be on the shelves
and the ability to properly support the customer will be impacted.
 Pre-packaging – kitting: This function of distribution centres is the concept of
putting items of like use together to create a “kit” that can be shipped as one item. A
pre-packaged oil change kit is an example of this. The distribution centre may kit the
oil, filter, and filter wrench into one kit with a new stock number that will be sold as
one item rather than three separate items. Some repair parts facilities not only kit the
items together but by storing items by vehicle type in the distribution centre create a
warehouse in a warehouse similar to the concept
 Order entry: Order entry may be automated and linked to the warehouse
management system or could be a manual entry “fat-fingered” in by someone in the
warehouse or distribution centre. This is another critical function to the success of
customer service operations. If the wrong stock number or SKU is entered into the
system, the wrong item will be picked by the warehouse/distribution centre worker
and if an audit of the shipment does not catch this error, the customer will get the
wrong product or the wrong quantity of the right product
 Picking: This is the physical function of getting the items off the shelf and ready for
shipping. Picking may be accomplished by sending workers to various zones or
sections of the warehouse/distribution centre and then consolidating the items into one
shipment or the picking may be accomplished as an order where one worker travels
through the facility picking all the items for the order before moving to another order.
 Shipping: This is the last function under the control of the distribution centre
orwarehouse. Accurate shipping is critical to customer satisfaction. Some
shipping companies willactuallyplanthe shippingmanifest andloadingtofacilitate
more efficient shipping fromdistributioncentrestocustomersortranshipmentsites
 Perfect order fulfilment: Perfect order fulfilment is a metric of distribution centre
effectiveness and efficiency, as part of the overall supply chain. Perfect order
fulfilment is a measure of how well you are meeting the needs of the customer. This
metric looks at the ability of getting the right item to the right place, at the right time,
in the right quantity, in the proper condition, and with the proper billing. The
calculation for perfect order fulfilment
 Damage: Damage in the warehouse or distribution centre is inevitable. When things
are moved or sit for long periods of time as they do in warehouses, things get
damaged. The goal of the distribution centre management or the warehouse
management team is to minimize this damage. Some of the damage can be eliminated
by changing the metrics for productivity in the facility. The metric for productivity in
most facilities is items or orders picked per houra measure of how many different
items is taken off the shelf to prepare for shipment to the customers each hour

Carrying Cost

This is the total cost of all the expenses involved in maintaining inventory.

Such expenses include:

 The cost of capital invested in inventories. An interest will be paid on the amount of
capital locked up in inventories
 The loss of material due to deterioration and obsolescence
 Cost of spoilage in handling the materials
 Insurance cost
 Cost of storage which could have been used for other purposes (Opportunity cost)
SIGNIFICANCE OF PHYSICAL DISTRIBUTION

 Confers Place and Time Utility on Product

It is physical distribution that confers place utility and time utility to a product by making it
available to the user at the right place and at the right time. Thereby it maximizes the chance
to sell the product and strengthen the company’s competitive position. Normally every
product gets consumed at places and times that are different from those of their manufacture.
They have to be carried to places of consumption, they have to be stored and they have to be
distributed.

 Where Production Location & Markets Are Distanced, Physical Distribution Becomes
More Crucial

The production locations are totally dictated by considerations like proximity to


source of raw materials. As a result, the points of production might be far away from the
markets for the product. In some cases, huge production capacities get established at a
given location on considerations of technology and economies of scale. In all such cases,
product has to be marketed over an extended territory; it has to be transported over long
distances, stored for a considerable length of time and sold. E.g.: normally in automobile
industry the production is done at one place but the market of the product is all over the
world. In the case of seasonal production or the seasonal consumption of the product also
Physical Distribution becomes crucial. It has to perform the balancing act between
production and consumption.

 Helps for the Expansion of Markets

physical distribution that determines the customer service level to a large extend. As a
result, it serves as a vital tool in building clientele/market for the product. And conversely
ineffective physical distribution leads to loss of customers and markets
Customer places Supplier receives and Inventory on hand Production
an order enters order checked scheduled

Orders shipped Goods stored until Goods packed and


to individual orders placed stored and send to local
customers warehouse

RETAILING

Includes all the activities involved in selling goods or services directly to final consumers for
personal non-business use. A retailer or retail store is any business enterprise whose sales
volume comes primarily from retailing. Retailers are the last but not the least in the marketing
channel through whom the eventual transfer of ownership of goods take place. The use of
retailer boils down to their superior efficiency in making goods widely available and
accessible to target markets. In most of the cases the retailers perform the important functions
mentioned as under.

1. Information

2. Promotion

3. Negotiation

4. Ordering

5. Financing

6. Risk Taking

7. Physical Possession

8. Payment 9. Title

The major types of retailers are as following

1. Specialty Store They sell narrow product line with deep assortment,
2. Departmental stores: They sell several product lines with each line operated as separate
department managed by specialist buyers or merchandisers 3

4. Convenience Store: These are relatively small store located near residential areas, open
long hours, seven days a week and carrying united lines of high turnover convenience
products at slightly higher prices.

DECISION MAKING FOR CHANNEL OFDISTRIBUTION

The marketing executive undertake to following steps in order to establish

The channel of distribution for a company

 Buyers must understand the retail and wholesale market and type of middlemen
Available in both
 Buyers must understand the various conflicts which continuously exist between and
within the channel
 Buyers must select the general channel to be used keeping in mind the goals The
Company marketing programmed and the job to be done by distribution system.
 Buyers must take decision regarding be intensity of the distribution The Number of
middlemen to be used each level and each market
 Buyers must select the specific firms which will handle his product and then Manage
the day to day working relationship with them
 Buyers must determine the methods and the procedure in firms use of the
transportation and warehouse facilities and services in firms in the physical
distribution of the product.

Types of Marketing Channels

 Direct marketing channel marketing channel that has no intermediates level


 Indirect marketing channel: Channels containing one or more intermediaries
REVIEW OF LITERATURE
Zuluaga et al (2012), Ware housing cannot be avoided in logistics, but can certainly be
reducedto minimum levels. The productivity potential of logistics can be exploited by
selecting the right type of handling equipment. The selection of material handling equipment
cannot be done in isolation, without considering the storage system. Investment in the
material handling system will be sheer waste if it is not compatible to the warehouse layout
plan. The method of simulating the selective pallet rack will produce a conclusion whether
the size is maximized or not in the warehouse.

According to Robert Hughes (2015), warehousing is a set of activities that are involved in
receiving and storing goods and preparing them for reshipment. It is deemed that
warehousing not only serves as a storage facility, but as a hub for various other activities,
such as receiving, identifying, holding and assembling inventory and ensuring its
availabilityto meet the demand. Thus, a warehouse acts as an integral part of logistics that
stores products between the point of origin and the point of consumption.

William (2008) wrote about warehouse pallet flow storage system, goods loaded into the
rack and then each move by itself with an engineered-calculated angle to the out area far
back. He discusses most of the things, except there is no further explanation about his method
and there is no cost associated.

Perme et al (2011) discuss about using discrete simulation to calculate the efficiency and
flow of the warehouse, and also to look for the constraints. But it can only be used along with
the warehouse that has already equipped with WMS. Despite the WMS, efficiency
calculation is one important aspect to be seen for configuring a racking system to ensure a
smooth flow inside the storage.

Zengetal (2012), use ABC analysis for analyzing the type of goods (which one should come
first) and the journal compared 3 racking system for the best rack in the warehouse based on
the number of pallets can be stored inside. Unfortunately, there is no cost associated for the
racking system and this method is designed to make a whole new layout.

Gue and Meller (2017)talkabout aisle configurations for unit-load warehouses. Their
objective is to minimize the travel distance of the lift truck for one Pick and Deposit point.
Building a warehouse layout is necessary to use this, and it is being used as a project in a
traditional layout design. This calculation is needed to configure the international standard
aisle for a storage facility.

Dekker et al (2014) wrote research about order-picking response time. This research is good
to be used in this project to calculate the inventory accuracy and to optimize the picking of
goods inside a warehouse. One of the methods used by writers is heuristic simulation which
simulates the choices of route that was calculated through several steps.

In a book written by Mulcahy (2004), planning analysis has two steps: data collection and
development of alternative layouts. The first step is divided into five methods, they are:
identifying and listing existing material handling equipment, measuring, classifying each
warehouse function, projecting SKU inventory levels, and reviewing alternative material
handling concepts. The second step, development of alternative layouts, has an objective to
build alternatives for several key warehouse functions.

The first article is from Clymer Enterprise (2008), it is about the benefit of using drive-in
pallet rack placed in the center of the warehouse (aisle in four corners are the same), but
unfortunately there is no cost associated in this article. There is also an explanation about
modular racking system. Thisarticle made by Frazier Industrial (2008). Offers a non-built
racking allows us to build by ourselves.

Phelan (2009) explains about the warehouse systems power today’s efficient distribution
facility. It is the secret weapon in logistics operations for improving system productivity,
enhancing customer service and speeding up throughputs. By gaining control of your
warehouse, you gain control of your profitability. Effective ware housing systems create
savings that helps directly to improve your bottom line.

Cisco-Eagle (2013) gives a method to calculate the rack estimator for a warehouse using the
detailed measurement of the warehouse. This data then calculated and the cost come out is
came from the average price of each product needed for the warehouse.
OBJECTIVES OF THESTUDY

 To study on creating time and space utility


 To study the distribution system of the company
 To study about the security measures taken in the warehouse

LIMITATIONS OF STUDY:
 The study is time limited for only 30 days. It should not be exceedingly more than
that time period.
 Lack of time is also a major constrain of study.
Scope of the study

 This study helps to know the importance of warehouse operations in Shanthi feeds Pvt
ltd
 Implementation of warehouse in better distribution process
RESEARCH
METHODOLOGY
2.1 RESEARCH METHODOLOGY

Research methodology is a science. It is a method that can be used to solve the research
problems. It helps in studying how research is done scientifically. Research methodology
provides various steps that can be adopted by the researcher studying his research problems.
Methodology has many dimensions. The scope of research methodology is wider that of
research methods. Research methodology not only includes research but also considers the
logic behind those methods. It explains why we are using a particular method and why we are
not using another so that research results are capable of being evaluated either by the
researcher or by others. It also explains why research has been undertaken, how the research
problem has been defined, in what way and why the hypothesis has been formulated, what
data have been collected how to calculate various statistical measures like mean, median,
mode, standard deviation etc., how to apply a particular research technique, which of the
various research methods available is more relevant and so on. Research methodology deals
with objectives of a research study, the method of defining the research problem, the type of
hypothesis formulated the type of data collected, methods used for collecting and analyzing
the data etc. According to Kerlinger, “Research methodology is the plan, structure and
strategy of integrating so as to obtain answer to research problems and to control variables.”

2.2 RESEARCH DESIGN


A research design is a plan of proposed research work. The research design is simply a
specific presentation of various steps in the process of research. Research design means
adopting that type of technique of research, which is most suited for this research and study
on the problem. In fact, the research design is the conceptual structure within which the
research is conducted. It constitutes the blue print for the collection, measurement and
analysis of data. Research design must contain a clear statement of the research problems
procedures and techniques to be used for gathering information, the population to be studied
and methods to be used in processing and analyzing data. Based upon the purpose and
problems of investigation there are three important research design methods. They are;
1) Exploratory research design
2) Descriptive research design
3) Casual research design
This study is descriptive in nature. Descriptive research design is a type of research design
that aims to obtain information to systematically describe a phenomenon, situation, or
population. More specifically, it helps answer the what, when, where, and how questions
regarding the research problem, rather than the why. Descriptive research is a quantitative
research method that attempts to collect quantifiable information for statistical analysis of the
population sample.

2.2 POPULATION
The entire aggregation of items from which sample can be drawn is known as population. It
is a collection of individuals or of their value which can be numerically specified. Population
can be finite or infinite. A population containing a finite number of items is known as finite
population. And a population containing an infinite number of items is known as infinite
population.

The company selected for the study is the population of the study.

2.3 SAMPLING TECHNIQUES

Sampling is the procedure of obtaining information about an entire population by only


examining a part of it. Simple random sampling is based on the concept of random selection
or chance sampling. Here, every item of the universe has an equal chance of inclusion in the
sample. It is a form of lottery method where the units are chosen from the whole group by a
mechanical method. This is why the researcher has chosen simple random sampling. This is
almost a blunt selection. Random sampling ensures that the law of statistical regularity is
followed. This implies that it the sample chosen is a random one, the chances are that the
sample will have the same composition and characteristics as the universe. This is why
random selection is considered as the most useful method for obtaining a representative
sample.

2.4 SAMPLE SIZE


Size refers to the number of items selected from the universe to constitute a sample.

2.5 SOURCE OF DATA COLLECTION

The primary data refers to the first-hand data gathered by the research himself. In this study
the data has been collected through Shanthi feeds private limited

Secondary data are those which have been collected by some other person and published so a
researcher is said to make use of secondary data already compiled by some other person.
Secondary data are usually in shape of finished products. Secondary data is available easily
and at low cost published and unpublished records like accounting and financial records,
personnel records, register of members, inventory records are also examples of secondary
sources. Secondary data is easily accessible and does not cost much to researcher depending
on its availability. Secondary data’s use ensures the availability of data for making scientific
generalizations from the studies. Secondary data is used as a benchmark to test the findings of
research for making comparative analysis. Researcher has obtained secondary data from the
following:
Company records and manuals

 Broachers
 Websites
 Books and magazines

2.6 TOOLS FOR DATA COLLECTION

The data for the collected through observation method

Observation method

Observational research is a research technique where you observe participants and


phenomena in their most natural settings. This enables researchers to see their subjects make
choices and react to situations in their natural setting, as opposed to structured settings like
research labs or focus groups.
CHAPTER-3

DATA AND INTERPRETATION

Shanthi cattle field

Shanthi Feeds (Pvt) Ltd is a pioneer and leader in the poultry industry with over two decades
of proven stature as a poultry integrator. The feed division has production capacity of
2,40,000 metric tons per annum for both captive and market consumption. The modern plants
with state-of-the-art facilities and sophisticated laboratories are among the best in the
country. Shanthi Feeds, in pellet, crumble, and mash forms, has earned complete confidence
of poultry farmers in Tamil Nādu and Kerala and this is quite evident from the phenomenal
growth of the organization during the past two decades. Balanced cattle feed is a major input
to successful dairy operations. Shanthi Cattle Feed, a perfectly balanced compound feed, is
scientifically formulated and produced for increased yield of milk of high butter fat content.

Corn manufacturing

Maize (Indian Corn) constitutes a primary poultry feed ingredient. In India, major maize
producing states are Karnataka, Andhra Pradesh and Bihar. Other states including Tamil
Nadu, Uttar Pradesh, Madhya Pradesh, Maharashtra, and Orissa are producers of a smaller
scale.
Corn is generally grown in two seasons. The first is Khariff, for which sowing starts in
June and harvested October onwards. Karnataka, Andhra Pradesh, Gujarat, Maharashtra
and Orissa have Khariff crops. The second is Rabi, for which sowing starts from
December and harvested by March. Rabi crop is mainly grown in Bihar and coastal
Andhra Pradesh. In Tamil Nadu corn production starts from January and peaks by March.
Corn may also be produced in small quantities during other times of the years

Poultry chicken feed

Shanthi Feeds offers commercial broiler hatching eggs for sale from selected flocks of
internationally renowned Cobb 400 breed. A limited stock of carefully produced and selected
hatching eggs is available to Shanthi Feed’s international and domestic customers.
Shanthi soya been

Soya bean is the single largest oilseed produced in the World. In India, Soya bean in purely a
Kharif crop, for which sowing begins by end of June with the arrival of south-west monsoon.
The crop is usually ready for harvest by the end of September and start being sold in the
market October onwards. Crushing for oil and soy meal starts in October, reaching a peak
over the next two or three months.

PACKING, WAREHOUSING AND SHELF LIFE:

Shanthi Broiler Feed:

Packaging Type: PP Bags

Product Type: Chicks Meal

Shelf Life: 3 Month

Shanthi Cattle Feed:

Packaging Type: PP Bags

Moisture: 10-11%

Storage: Dry warehousing

Shelf Life: 4 Months

Corn manufacturing:

Packaging Type:Plastic Bag

Packaging Size:50 Kg PP package

Storage: Dry warehouse

Poultry chicken feed:

Packaging Type : Plastic Bag

Packaging Size : 50 Kg PP package

Storage : Dry ware house


Shanthi Corn Feed:

Storage Condition: Dry warehouse

Moisture: 14 % (max.)

Packing type: pp bags

Shanthi Hatchery chicks meal :

Packaging Type: PP Bags

Moisture: 10-11%

Shelf Life: 3 Month

Shanthi Soya Bean:

Packaging Size: 1 Kg, 5 Kg, 10 Kg, 20 Kg

Packaging Type: PPBags

Storage: Dry warehousing

MARKET COMPETITORS:

 SKM feeds
 Geeta Argo
 Avanti feeds
WAREHOUSE:

COMPONENTS EXTISTING CAPACITY APPORXIMATE


REQUERMENT
Intergraded pack houses 250 70000
Reefer truck 10000 62000
Cold storage 12 million tons year 15millon year
Ripening chambers 800 9000

Warehouse using for distribution purpose and exporting

Farm fresh F&V Theni


Frozen foods F&V Mettupalayam
Farm freshanimal feeds Meat Hosur
and foods
Marble valley foods Marine Thirunalveli
Suvarna cold storage Meat Cochin
Coco land agro F&V Kanchipuram

WAREHOUSING PROCESS

Picking goods

The picking process plays a major role in terms of impact on customers and resource
utilisation. Therefore, it is necessary to optimise the picking process, which results in
increased productivity, reduced costs and remaining competitive.

Some other benefits of optimising the picking process are:

 It helps in organising orders and items. Many available techniques for organising
products are based on the way organisations prioritise the significance of speed,
dimension, accuracy, product size and various other factors.
 It helps reduce the load on workers and their morale is improved. If the picking route
is optimised, it results in less wear and tear, and fewer footsteps for employees
 It facilitates faster cycle time and order completion. More items are picked per hour,
which implies higher turns and more waves in each shift.
 It aids in minimising the travel time of pickers. In case of a well-organised picking
process, even the most basic warehouse software can help in minimising the picking
time and optimising the process for getting products from the shelf to the packing
station.

Receiving

Warehouse receiving process to run efficiently need to establish and enforce receiving
requirements for suppliers, shippers, and/or carriers. The objective is for them to present the
cargo in a way that is quick and easy to process and coordinate packaging requirements such
as

 Label position
 Label Information
 Palletized or loose cargo
 Number of packages per pallet
 Items per carton
 Acceptable package size & weight

SHIPPING ORDERS

These few steps warehouse management process are straight forwarded

1. Weigh the package

2. Print out relevant shipping label (and invoice, if not already done so)

3. Mark the order as ‘Shipped’ on the relevant sales channel or Order Management System 4.
Send out ‘shipping confirmation’ and ‘tracking’ emails to the customer*
MONITORING GOODS IN TRANSIT

 Order lead time


 Tracking orders for goods
 Controlling stock movements:
 Establishing minimum stock levels and monitoring the same;
 Goods receipt quality inspections
 Physical stock control in the warehouse
 Controlling Specialized Items; and
 Releasing stock from storage and goods dispatch.

Inspection

The quality of storage conditions may vary along the supply chain and a manager may
occasionally need to verify the quality of some products. Visual inspection is the process of
examining products and their packaging to look for obvious problems with product quality.
Maintaining appropriate storage conditions and ensuring that damaged or expired products do
not reach a service delivery point where they could be inadvertently given to a client is
essential. To ensure the quality of the product in your warehouse and pipeline, conduct a
visual inspection when you do any of the following:

 Receive products from the manufacturer


 Conduct a physical inventory count
 Receive a complaint about a product you issued
 Identify a product that is about to expire
 Identify a damaged product
 Notice that a product has not been stored properly.

Two basic types of damage may occur during shipping and storage that affect product
quality: mechanical and chemical. Mechanical damage is caused by physical stresses, such as
crushing or tearing when the products are loaded, off-loaded, or when cartons or inner boxes
are stacked. This kind of damage is usually limited to crushed or torn parts. Chemical damage
is more difficult to detect and confirm during a visual inspection. Laboratory testing is
usually required. Some indications of chemical damage may include changes in the colour, or
consistency of the product.
PRODUCT STROAGE

The product storage activity refers to the accumulation of inventory for a time period. In
warehouses, inventory storage may happen for different lengths of time and in different
storage locations, depending on the purpose of storage. There are four primary functions in
storage that impact warehouse design. They are holding, consolidation, mixing and break-
bulk.

Warehouses are typically designed to complete one or more of these functions. The structure
and layout of a warehouse depend on the importance that is given to perform these functions

Product storage can be of two types, i.e., long-term or semi-permanent storage, and short-
term or temporary storage. Long-term or semi-permanent storage involves storing products
more than what the demand. Shanthi feeds following semi permanent storage

INFORMATION TRANSFER

To administer warehouse operations, managers need to have timely and precise information.
Therefore, importance is given to the information transfer activity. This activity works
simultaneously with the other two activities that are product movement and product storage.
With the help of this activity, a warehouse manager can keep track of products’ locations,
throughput and inventory levels and shipments (both inbound and outbound). A successful
warehousing operation is the result of this information flow in addition to data on personnel
and customers, space utilisation and other relevant parameters. Nowadays, organisations
realise the importance of effective information transfer. Therefore, they are continuously
improving their means, speed and accuracy of information transfer by using modern and
computerised processes, such as pre-packing bar codes, Electronic Data Interchange (EDI)
systems, and the Internet.
PHYSICAL DISTRIBUTION

The three major component functions of physical distribution are

 Transportation
 Warehousing
 inventory management
 Transportation

The importance of transportation in physical distribution emanates from a variety of factors.


Transportation confers time and place utility to the product; it determines the company’s
customer service; it also has a crucial bearing on the other element of physical distribution
and marketing; like warehousing, inventory control and channel management. Finally
transportation is also a very important cost element in most business.

Decisions on transportation management

 How to move?
 When to move?
 Where to move?
 By what mode or combination of modes to move?

The considerations in making these decisions are:

 The lead time for stock replenishment


 Sales expected in the territory in the intervening time
 The normal cycles of inventory build up at the warehouse /dealer points.

It can make basic decisions on transportation. In a fundamental sense transportation has to be


based on the sales forecast decisions on when to move, how much to move and where to
move will essentially depend on the sales forecast.

Inventory management is the third major component of physical distribution task. It will be
obvious that without effective management of finished product inventory it is impossible to
run any business efficiently and effectively. Inventory is primarily a function of customer
service level fixed by the firm. Here, customer service level means the ability to meet the
demand at the retail level as and when it arises from available stocks without having to
generate a back order.
DISTRIBUTION OF SHANTI FEEDS

 Channel 1 Manufacturer……………consumer
 Channel 2 Manufacturer……………Retailer……. Consumer
 Channel 3 Manufacturer………Wholesaler………Retailer……..consumer

4. Discount Store: - These sell standard merchandise at lower prices with lower Margins and
higher volumes.

5. Off price Retailers: These sell the merchandise which are bought at less Than regular
wholesale prices and sold as less than retail.

 Factory orders
 Independent off price retailers

Major distributors

 Fast food chain KFC is a Shanthi Feeds customer is seeing this first hand, having
posted 19% growth in the 3rd quarter of 2020
 Indian army. Having usually sourced live birds, in 2017 it decided to switch to
dressed ones and frozen chicken, giving a major boost to the country’s processors.
 Online partners like Licious and Delfrez
 Shanthi feeds has own retail stores locating nearby cites of its warehouses which is
also functioning as a wholesalers to local market
CARE OF WAREHOUSE EQUIPMENT

Warehouse equipment is maintained to prevent accidents and breakdowns from occurring.


Maintenance activities consist of inspections, regular servicing and monitoring performance
for failure trends, as this will enable symptoms to be recognized before failure occurs.
Equipment maintenance has a strong health and safety bias. Often health and safety
legislation will impose on management an obligation for safe systems of work. Ensuring safe
policies and procedures of work will require an examination of men, machinery, methods,
materials and environmental aspects. Some areas to pay attention to:

 Planned maintenance
 Maintain equipment
 Maintain building
 Completion of maintenance records

SECURITY SYSTEM

The New hatchery in Pappampatti houses the latest Petersime single-stage Bio StreamerHigh
Density incubators, which are closely monitored using the Eagle Eyeoperating system and
Hatchery Alert SystemPetersime also designed and constructed a fully integrated HVAC
installation. After completing the first phase in 2019, Shanthi Feeds’ hatchery has the
capacity to set and hatch over 14 million eggs annually.

Temperature, humidity and light play a vital role at the incubation stage. Therefore,
incubation process is contained in a hygienic facility with world class equipment. Hatching
centre comprises 150 state of the art incubators and allied facilities. Cooling equipment
maintains the desired temperature levels for eggs to be stored for the specific timeframe.

The eggs are then transported to the incubator and moisture using automated processes for a
period of 21 days. The one day old chicks from the incubators are then prepared for the next
stage in the cycle of growth: breeding. Our stringent grading system allows only the
healthiest chicks to mature into full grown birds.
Warehouse Control Systems

The material handling technology is the warehouse control system. Earlier, the control
systems used to be considered as a mere collection of control and mechanical devices that
move materials from one location to another within a warehouse. Generally, these used to be
taken as an inconvenient requirement instead of a competitive opportunity.

However, in present times, advanced control systems offer an interface between upper-level
software and material handling equipment. With this interface, it is possible to exchange
information between data-driven software (such as Warehouse Management System, WMS)
and material handling equipment.

More advanced level control systems are known as Warehouse Control Systems (WCS)
which offer a single point interface while coordinating system interfaces and equipment. For
instance, a WCS can allow integrating WMS of all equipment with real-time controls

Product storage

The product storage activity refers to the accumulation of inventory for a time period. In
warehouses, inventory storage may happen for different lengths of time and in different
storage locations, depending on the purpose of storage. There are four primary functions in
storage that impact warehouse design. They are holding, consolidation, mixing and break-
bulk.

Product storage can be of two types, i.e., long-term or semi-permanent storage, and short-
term or temporary storage. Long-term or semi-permanent storage in shanthi feeds the semi
permanent storage is used

LABELLING AREAS OF WAREHOUSE

In warehouse the goods can’t be done without set location names for stock that have been
clearly labelled. to look at warehouse system and see exactly where any product islocated

ROW SHELF BIN


A A 1
B B 2
A B 1
Organizing products

Organizing warehouse is the foremost step toward improving your operations. Through
effective warehouse design, your workers will spend less time picking or storing products. A
well-organized facility also makes integrating software use into your processes more
manageable. From optimizing layout to improving your receiving, you have numerous ways
to get the most exceptional efficiency from your facility, regardless of the physical space you
have.

 Use information labels and use photos of products


 Store products sold together near each other
 Keep best selling products close to the front
 Make clear aisles  throughout the warehouse
 Stack inventory higher to make use of vertical space
 Use mobile shelving units for seasonal products
 Use stacking bins for smaller products
 Reduce the number of shipping container sizes
 Provide enough space in the receiving area
 Continually seek organization improvement opportunities

Organizing technique

 A Items: Are of high value with low sales frequency.


 B Items: Are of moderate value with moderate sales frequency.
 C Items: Are of low value with high sales frequency

ENVIRONMENAL CARE

The way of dressing chicken contributes to environmental causes and care for animal welfare.
Pollution resulting from noise, sight, smell, particulate matter, and germs associated with
traditional slaughterhouse practices is avoided. Every part of the live bird is harvested and the
inedible portions converted into usable products in a hygienic manner using sophisticated
equipment. The birds are not subjected to physical or drug abuse at any stage. Even the actual
slaughter is a humane operation and painless to birds.
LEGAL CONSIDERATION

Leasing Temporary Warehouses/Contracting.

The common practice in emergencies is to lease or rent, not purchase warehouses. In this
situation, there is often a shortage of suitable buildings or locations for warehouse space and
this can often cause the costs to increase significantly. Therefore, it is often necessary to
utilizetemporary warehouse space for as short a time a possible.

Care must be taken with the drawing up of the lease agreement with the owner. The
following

items are basic inclusions and in a lease agreement:

 The cost for the lease


 The duration of the lease agreement
 Exit clause: the period of notice required for terminating or extending the lease
period.
 Confirmation of the existence of property insurance, covering third-party, fire, water
damage, window breakage, etc.
 Details of any security arrangements
 A detailed inventory of any equipment, fixtures and fitting included with the building
 Ailed description of their condition
 Confirmation of either sole tenancy or details of other tenants
 Information about the ground or floor strength per square meter
 The weight capacity of any equipment such as forklifts, racks and shelves
 In situations where neutrality is important, care must be taken to establish the actual
 Owner of the building, which might be different from the lesser of the building
 Military, religious groups or government
 Force majeure
 Indemnity
 Insurance
Personal Protective Equipment

 Hard hat
 Eye protection
 Dusk mask
 Work gloves
 Cold weather gear

Emergency Equipment

 Sprinklers
 Fire extinguishers
 Evacuation routes
 Electrical panels
 First-aid supplies
 Alarms and phones

CHAPTER 4

FINDINGS:

 The security system of warehouse is updated with eagle eye operating system
 The unit of shanthi feeds are not widely dispersed hence it has low concentration in
the market
 The Shanthi has now started working with a start-up, like Licious, to reach more
customers directly and deliver consumer preferred products

SUGGESTIONS:

 The proper analysis of required range of stock contributes to the effective


implementation of customer orders and the implementation of more frequent
deliveries and insofar as this is required by the client.
 Informal interaction and information sharing should be giving priority in physical
distribution to make it is more efficient and effective.
 Distribution centres are want to widely disperses to do distribution effectively

CONCLUSION:

Modern large warehouse is a complex technical structure, which consists of many interrelated
elements, has a definite structure and performs a number of functions to Transform the
material flow as well as the generation, processing and distribution of goods among
consumers. In this case, because of the variety of parameters, technological solutions,
equipment design and characteristics of different nomenclature, handled cargo warehouses
are complex systems. At the same time the warehouse itself is only part of the system of
higher level, the logistics chain, which forms the basic and technical requirements for the
storage system sets goals and criteria for its optimal functioning, dictates the terms of
processing load. Therefore, the warehouse should not be considered in isolation but as an
integral component of the distribution system. Only such an approach will ensure the
successful implementation of the basic functions of a warehouse and a high level of
profitability. A prerequisite for this is a clear definition of functional tasks and a thorough
analysis of the processing load, both inside and outside the warehouse. Any costs should be
economically justified. The introduction of any technological and technical decisions
concerning investment must come from a rational expediency, not of the fashion trends and
technical possibilities offered by the market.

BIBLOGRAPHY:

https://www.scribd.com/document/101651123/Physical-Distribution

https://www.tandfonline.com/doi/full/10.1080/00207543.2017.1371856

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