Project on SCM "Optomization of Distribution N/W from DC to Stores

OPTIMISATION OF THE DISTRIBUTION
N/W FROM DC TO STORES IN KOLKATA
1

2
ACKNOWLEDGEMENT
I would like to express my deepest
gratitude in the warmest manner possible towards Mr
V.K.M.REDDY,VP(SUPPLY CHAIN) for his extended
help&guidance to carry out this project in Spencer’s Retail
Ltd,our PROF D.N.CHAKRABORTY for his internal
guidance. I also thank Mr ANIRBAN
SANYAL,MANAGER(DC) for his guidance at DC with
valuable information he shared.
The topic is an interesting one. It gave me
an opportunity to have a detailed study on the logistics
backbone of Spencer’s Retails Ltd at DC-DANKUNI. I came
to understand and analyse the distribution network of the
Company in Kolkata.

3
This is to certify that Mr Arindam
Chakraborty has completed his project on
“Optimisation Of the Distribution
N/W from DC to Stores in Kolkata” in
Spencer’s Retail Ltd from Aug 2008
to Nov 2008.
External Guide
---------------------------------------------
V.K.M.Reddy(VP-Supply Chain)
Internal Guide
--------------------------------------------
Prof D.N.Chakraborty

4
INDEX
Sr. No. Topic Page No.
1. Objective 5
2. Introduction & Importance of Logistics 6-10
3. Indian Retail Industry 11-12
4. Spencer’s Retail Ltd 13-14
5. Spencer’s Kolkata Operations 15-17
6. Proposed area wise nodes 18-19
7. Kolkata 1 way traffic Nodes 20-21
8. Optimised Route Structure 22-25
9. Kolkata Logistics Operation(Spencer’s) 26-27
10. Logistics Activity from DC 28-29
11. Optimised Logistics Distribution 30-32
12. Vehicle Utilisation Report 33-34
13 Conclusion 35
14 Bibliography 36

5
Objective
Spencer’s Kolkata Operations is based on Logistics distribution from DC Dankuni to 22
local stores i.e the retail outlets spread across Hoogly dist(2),Kolkata(20) including
Kolkata North,Kolkata Central,Kolkata South,Dumdum,Dunlop areas.
Spencer’s uses 10 trucks for distribution of materials.The tariff structure is of a monthly
commitment of 3000Km/truck i.e total 30000 Km min.After 3000km it is Rs 13/Km.
The monthly utilization of trucks for July shows 98% of total overall utilization of the
fleet which has to be inproved.
Hence the objective of the project is to improve upon the utilization of the trucks above
the monthly commitment level so that the fleet can be utilized effectively with max &
optimum distribution of material to retail stores.The demand is being realized from indent
generated overnight and plan the delivery schedule accordingly.The timing and
choosing/picking of appropriate truck to specific location is to be optimized so that the
CAPEX do not increase,HEAD COUNT do not increase,only the OPEX increases
through extra Km charges.

6
INTRODUCTION
What is LOGISTICS?
Logistics is about moving materials, information and funds from one business to
another or from a business to the consumer. It is a vital part of the business economic
system and is a major global economic activity. In fact 10-15 per cent of product costs
are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any
country, the logistics cost is estimated between 9 and 20 per cent of its GDP.
Every company dreams of achieving the seven R's - delivering the right product in
the right quantity and the right condition, at the right place, at the right time, for the right
customer at the right cost. Effective logistics management alone can make this possible.
Logistics is one of the oldest and also the newest activities of business management. It
involves combining diverse functions and service providers who may be culturally and
objectively different.
In the past, quality of products and services was the key differentiating factor for
companies operating in the same market. In due course, quality and low cost became the
winning combination.
Today, responsiveness to the customers' needs is the determining factor. An
enterprise that caters instantly to the needs of the customer is the winner. Integrated
logistics can serve as a potent tool for success in today's competitive business
environment.
Logistics is an organized process of managing the flow of merchandise from the
source of supply - the vendor, wholesaler or distributor - through internal processing
functions like warehousing and transportation, until the merchandise is sold and delivered
to the end customer.

7
Logistics management aims to reduce inventory-holding costs and improve
profits, while enhancing customer satisfaction.
Anything can be ordered online, but receiving a tangible product is impossible.
The difference between e-business success and failure lies in a company's ability to
manage the logistics.
History of Logistics
The Greeks defined logistics as "the science of correct reasoning by means of
mathematics". The first modern use of the term was in the military to identify the process
of planning and coordinating the movement of army and weapon support systems. Good
logistics brings out the ability to move faster and accurately to the battlefront. “If one
applies the same to the business organisation, it is one's ability to reach the product to the
consumer at the right time, right place, right quantity and at the lowest cost.” On similar
lines, supply chain management will mean the network of organisations involved in the
process by which goods are moved from producer to consumer and the counter flow of
information, to manage the supply chain as a single entity.
A prominent application of logistics was in World War II where weapon
movements were coordinated to ensure success. A recent instance of massive logistics
initiatives is in the Gulf war. With increasing competition in the market place,
managements started focusing on customer services in the early 1950s in developed
markets such as Europe and the U.S. In late 1960s some of the logistics concepts were
tested. Following the oil crisis of the 1970s and the concept of just in time in
manufacturing customer-servicing standards were given more importance and new
integrated logistics models and solutions were born. The emergence of organized
distribution system by department stores and super fast courier service organisations gave
a boost to logistics concepts and strategies. Today all businesses are looking for seamless
transaction systems to co-ordinate their information and material requirements along the
value chain.

8
At the micro level any manufacturing and marketing company spends 5 - 35 per
cent of sales on logistics. The major cost components are transportation, warehousing and
inventory carrying cost. Improvements in logistics get reflected in a reduction in
inventory levels, shorter delivery schedules, and improved servicing standards with
significant savings in total costs.
Logistics Management Process
Michael Porter in his famous book "Competitive Advantage'' has spoken of the
value chain approach and emphasized logistics as one of the most important tools for
competitive advantage.
The various processes and elements that are part of logistics as a discipline are:
Inbound logistics: Purchasing, Inbound transportation, Inventory Management.
Manufacturing: Production planning systems, Machine scheduling system.
Outbound logistics: Order booking process, Distribution management, outbound
transportation, and Warehouse management systems.
As customers started demanding improved servicing standards, fast cycle time has
become the key factor for business success, whether it is custom made tailoring service in
Hong Kong or development of a new car in Detroit.
Before delving deep into logistics, a look at the current business scene will be great help.

9
Scenario of Logistics in India
At present, companies specialising in logistics operations in India use traditional
technologies and cater to stand alone services like transportation, warehousing, clearing
and forwarding. There is tremendous scope to upgrade the technology, integrate the entire
supply chain, improve productivity levels and bring down operating costs. Any
technology that can improve productivity in transportation operations will be a great
boom to the economy both directly and indirectly with opportunities for 10-12 per cent
reduction in costs. Besides the savings on downstream users of transport will be much
higher and the cost multiplier effect on the economy will be reduced to that extent.
Given the emerging business and technological trends there are possibilities for
adoption of innovative logistics solutions specifically designed for India. In addition,
there is a requirement for an integrated strategy towards developing logistics and its
related IT infrastructure and also enhancing its industry base.
In recognition of the growing need for technology-enabled solutions in logistics in
India and abroad, many companies such as eLogistics are taking shape. In fact, there are a
dozen multinational logistics companies such as Exel, Bax Global and Menlo which have
started operations in India during the last few years.
Today logistics management in India has become complex with about ten million
related outlets to cater to the needs of 1000 million people.
The logistics market in India is estimated to be Rs. 260,000 crores and constitutes
13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to
countries like China and Korea.

10
A reduction in logistics costs by one percentage point will mean a saving of $4.8
billion or Rs. 21,600 crores annually.
Besides significant benefits can be reaped through the multiplier effect of better
logistics on all economic sectors.
About Logistics & Retail
Logistics contributes to an organization’s success by providing customers
with timely and accurate product delivery. The key question is who is the customer? For
logistics, the customer is any delivery destination. Typical destination range from
consumers’ homes to retail and wholesale businesses to the receiving docks of a firm’s
manufacturing plants and warehouses. In some cases the customer is a different
organization or individual who is taking ownership of the product or service being
delivered. In many other situations the customer is different facility of the same firm or a
business partner at some other location in the supply chain. Regardless of the motivation
and delivery purpose, the customer being serviced is the focal point and driving force in
establishing logistical performance requirements. It is important to fully understand
customer service deliverables when establishing logistical strategies.
In a typical retail industry, the delivery of goods to end point customers depends
upon its logistic function as the storing & displaying of goods is the only the major part
in retail.For timely & accurate delivery of goods in retail outlets the logistic distribution
should be an optimum one.

11
INDIAN RETAIL INDUSTRY
India retail industry is the largest industry in India, with an employment of around 8%
and contributing to over 10% of the country's GDP. Retail industry in India is expected to
rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable
demographic patterns. It is expected that by 2016 modern retail industry in India will
be worth US$ 175- 200 billion
As the contemporary retail sector in India is reflected in sprawling shopping centers,
multiplex- malls and huge complexes offer shopping, entertainment and food all under
one roof, the concept of shopping has altered in terms of format and consumer buying
behavior, ushering in a revolution in shopping in India. This has also contributed to large-
scale investments in the real estate sector with major national and global players
investing in developing the infrastructure and construction of the retailing business. The
trends that are driving the growth of the retail sector in India are
Low share of organized retailing
Falling real estate prices
Increase in disposable income and customer aspiration
Increase in expenditure for luxury items
Another credible factor in the prospects of the retail sector in India is the increase in the
young working population. In India, hefty pay packets, nuclear families in urban areas,
along with increasing working-women population and emerging opportunities in the
services sector. These key factors have been the growth drivers of the organized retail
sector in India which now boast of retailing almost all the preferences of life - Apparel &
Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products,
Travel and Leisure and many more.
RETAILING FORMATS IN INDIA
Malls:
The largest form of organized retailing today. Located mainly in metro cities, in
proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They
lend an ideal shopping experience with an amalgamation of product, service and
entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd,
Pantaloon,Spencers etc.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword,
RPG's Music World,Books & Beyonds and the Times Group's music chain Planet M, are

12
focusing on specific market segments and have established themselves strongly in their
sectors.
D
As the name sugge
through selling in bulk reaching economies of scale or excess stock left over at the
season. The product category can range from a variety of perishable/ non-perishable
goods.
iscount Stores:
sts, discount stores or factory outlets, offer discounts on the MRP
epartment Stores:
rom 20000-50000 sq. ft, catering to a variety of consumer needs.
.
epartmental Stores are expected to take over the apparel business from exclusive brand
yper marts/Supermarkets:
ing to varied shopper needs are termed as Supermarkets.
l
onvenience Stores:
all stores 400-2,000 sq. feet located near residential areas. They
he
BO’s:
nd outlets, also known as Category Killers, offer several brands across a single
D
Large stores ranging f
Further classified into localized departments such as clothing, toys, home, groceries, etc
D
showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started
in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and
even has its own in store brand for clothes called Stop.
H
Large self-service outlets, cater
These are located in or near residential high streets. These stores today contribute to 30%
of all food & grocery organized retail sales. Super Markets can further be classified in to
mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging
from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and persona
sales.
C
These are relatively sm
stock a limited range of high-turnover convenience products and are usually open for
extended periods during the day, seven days a week. Prices are slightly higher due to t
convenience premium
M
Multi Bra
product category. These usually do well in busy market places and Metros.

13

14
Corporate Profile
ENCEAbout SP R’S RETAIL LTD
Spencer’s Retail is one of India’s fastest growing retail stores with multiple formats and
retailing food, apparel, fashion, electronics, lifestyle products, music and books.
Established in 1996, Spencer’s has become a popular destination for shoppers in India
stores in Mumbai, Gurgaon,
cknow, Calicut, Hyderabad, Vizag, Vijayawada, Aurangabad,Durgapur
MCG Non Food: Non food items such as
sehold products,workplace products etc.
onics & Electricals items
with supermarkets, hypermarkets and dailies spread all over India. Having 400 stores
across 66 cities covering a retail trading area of 1.3 million square feet and an astonishing
4.5 million customers a month the count is still growing.
FORMATS
pencer’s Hypermarkets: Hypermarkets with large formats
Ghaziabad, Lu
nd Kolkata.a
Spencer’s Super: Supermarket chains in the food and grocery segment in India.
Spencer’s Daily: small format stores conveniently located with a range of products to
meet daily household needs.
Spencer’s Express : food and grocery store next door
CATEGORIES
F
FMCG Food:
Staples :
HWP : Home/Work Place items such as hou
Garments:
lectrE & E : E

15
About SPENCER’S KOLKATA OPERATIONS
CORPORATE OFFICE
SPENCER’S RETAIL LTD
-700001
FLOOR
WAREHOUSE,C/O PEARL TRANSPORT COMPANY LIMITED
T : HOOGLY,PIN:712310
DUNCAN HOUSE,1ST
FLOOR,31,NETAJI SUBHAS ROAD,KOLKATA
REGIONAL OFFICE
NILHAT HOUSE
11, R. N. MUKHERJEE ROAD
th
8
KOLKATA700001
DISTRIBUTION CENTRE
REGIONAL
PAR DANKUNI,DIS
RETAIL OUTLETS
NAME ADDRESS NODE ID FORMAT
hah Road,Kol‐68 2 Hyper
145,Rashbehari Avenue,Kol‐29 3 Hyper
Mani Square Mani Square,164/1,Maniktala main Rd,EM Bypass,Kol‐54 4 Hyper
Avishar Avishar,369/4,Purbachal,kalitala Rd,EM Bypass,Kol‐78 5 Super
Bangur Avenue 293/294,Bangur Avenue,Block‐'B',Kol‐55 6 Daily
Springdale Springdale,Moore Avenue,2 N.N Dutta Rd,Kol‐40 7 Daily
Liluah P‐17,Vivekananda Colony,Liluah,Howrah‐4 9 Daily
Belur 295,G.T.Rd,Belur,Howrah‐711102 10 Daily
Lake town 711,Lake Town,Block‐A,Kol‐89 11 Daily
Dumdum Park 497,Dumdum Park,Kol‐55,Nr Tank no 3 13 Daily
Prafulla Kanan Maa Tara Apt,AB‐1,Prafulla Kanan(West)Krishnapur,Kol‐101 14 Daily
Belghoria Belghoria,75/2,Feeder Road,Kol‐56 15 Daily
Sinthi 48 Block 48,B.T.Rd,South Sinthee,Kol‐50 16 Daily
Dunlop 156/1/A,B.T.Rd,Kol‐108 17 Daily
Tolly Club 120 Deshpran Sashmal Rd,Kol‐33 19 Daily
Ballygunge Circular Road 64B,Ballygunge Circular Rd,Kol‐19 20 Express
R.N.Tagore‐Tagore Park 19/1,R.N.Tagore Rd,Kol‐76,Nr Dunlop 21 Express
Tolly Heights 239,N.S.C Bose Rd,Kol‐84 22 Express
Shantineer Shanti Neer,136,Garia Station Rd,Kol‐84 23 Express
Mahamayatala Mahamaya Apt,54,N.S.C Bose Rd,Kol‐700084 24 Express
Kalindi Satabdi Apt,333D,Jessore Rd,Kalindi,Kol‐89 25 Express
South City South City,375 Prince Anwar S
Rashbehari

16
OUTLETS DISTRIBUTION MAP

17
Distribution Centre Dankuni
Loading Gate
Staples Rack Packing Area

18
Proposed Area Wise Nodes
AREA NODE ID NAME TYPE
A 1 4 Mani Square Hyper
A 2 3 Rash Behari Hyper
A 3 2 South City Hyper
A 4
6 Bangur Avenue Daily
11 Lake Town Daily
13 Dumdum Park Daily
14 Prafulla Kanan ilyDa
A 5
15 Belghoria ilyDa
17 Dunlop Daily
21 R.N.Tagore Express
A 6
16 DailySinthi 48 Block
25 Kalindi Express
A 7
5 Avishar Super
26 Patuli Express
A 8
22 Tolly Heights Express
23 Shanti Neer Express
24 Mahamayatala Express
A 9
7 Springdale Daily
19 Tolly Club Daily
A 10
9 Liluah Daily
10 Belur Daily
A 11 20 Ballygunge Circular Rd Express

19
AREA MAP

20
Kolkata One way Traffic Nodes
Courtesy:Kolkata Trafic Police,Lalbazaar
Sl.No Name of the Street Direction Time
1.
Mother Teresa Sarani
(Park Street)
East to West
West to East
7 AM to 1 PM
1 PM to 10 PM
2. Shakespeare Sarani
West to East
East to West
7 AM to 1 PM
1 PM to 10 PM
3. Mirza Galib Street
South to North
North to South
7 AM to 1 PM
1 PM to 10 PM
4. Rafi Ahmed Kidwai Rd
North of South
South to North
7 AM to 1 PM
1 PM to 10 PM
5.
Sorojini Naidu Sarani
(Rowdon Street)-Entire Stretch
South to North
North to South
7 AM to 1 PM
1 PM to 10 PM
6.
Dr U N Brahamchari Sarani
(Loudon St.)
North to South All time (24 hrs)
7.
Picasso Bithi (Hungerford St.) North to South
South to North
7 AM to 1 PM
1 PM to 10 PM
8. Moira Street
West to East
East to West
7 AM to 1 PM
1 PM to 10 PM
9. Wood Street & Upper Wood Street
North to South
South to North
7 AM to 1 PM
1 PM to 10 PM
10 Ho-Chi-Minh Sarani
East to West
West to East
7 AM to 1 PM
1 PM to 10 PM
11.
Middleton Street between J L Nehru Rd
and little Russel St.
West to East
East to West
7 AM to 1 PM
1 PM to 10 PM
12. Sudder St
West to East
East to West
7 AM to 1 PM
1 PM to 10 PM
13.
Nellie Sengupta Sarani
(Lindsay St)
East to West
West to East
7 AM to 1 PM
1 PM to 10 PM
14. Abaniandra Nath Thakur Sarani
(Canac St)
South to North
North to South
7 AM to 1 PM
1 PM to 10 PM
15. Nandalal Bose Sarani
(Little Russel St)
North of South
South to North
7 AM to 1 PM
1 PM to 10 PM
16. Lord Sinha Rd South to North
North to South
7 AM to 1 PM
1 PM to 10 PM
17. Middleton Row Entry from Camac St
Entry from Park St
7 AM to 1 PM
1 PM to 10 PM
18. Pretoria St North of South
South to North
7 AM to 1 PM
1 PM to 10 PM
19.
A J C Bose Rd between J L Nehru Rd &
Cathedral Rd
East to West
West to East
7 AM to 1 PM
1 PM to 10 PM
20.
L Nehru Rd between Ho-Chi Minh Sarani
C Bose Rd
North of South
South to North
7 AM to 1 PM
1 PM to 10 PM
J
& A J
21.
l Rd between AJC Bose Rd & J L
Rd
Extension
South to North
North to South
7 AM to 1 PM
1 PM to 10 PM
Cathedra
Nehru Rd Crossing, Cathedral

21
nSl.No Name of the Street Directio Time
22. Queens way
No entry from Casuarina
Ave
1 PM to 10 PM
23. Short St. between Camac St and Wood St tWest to Eas 7 PM to 10 PM
24. Albert Rd
tEast to Wes
West to East
7 AM to 1 PM
1 PM to 10 PM
25.
n Rd and J L Nehru
oth way
Mayo Rd between Duffri
Rd
East to West B
7 AM to 1 PM
1 PM to 10 PM
26.
h
h
Rani Rashmoni Road
South to Nort
North to Sout
7 AM to 1 PM
1 PM to 10 PM
27.
wai Rd andRipon St between Rafi Ahmed Kid
Free School St.
West to East
East to West
7 AM to 1 PM
1 PM to 10 PM
28.
xt) between Pretoria St andPretoria St (E
Camac St
East to West
West to East
7 AM to 1 PM
1 PM to 10 PM
29. Rowland Rd
t
East to West
West to Eas
7 AM to 1 PM
1 PM to 10 PM
30. Outram St
rthSouth to No
North to South
7 AM to 1 PM
1 PM to 10 PM
31. Mullen St
t
East to West
West to Eas
7 AM to 1 PM
1 PM to 10 PM
32.
t
t
Chakraberia Rd (North)
West to Eas
East to Wes
7 AM to 1 PM
1 PM to 10 PM
33. Harish
rth
uth
Mukherjee Rd
South to No
North to So
7 AM to 1 PM
1 PM to 10 PM
34.
t
t
Elgin Rd
East to Wes
West to Eas
7 AM to 1 PM
1 PM to 10 PM
35. Woodburn Park Rd
South to North
North to south
7 AM to 1 PM
1 PM to 10 PM
36. Lee Rd
North to South
South to North
7 AM to 1 PM
1 PM to 10 PM
37. Sadananda Rd
South to North
hNorth to Sout
7 AM to 1 PM
1 PM to 10 PM
38. Pratapaditya Rd
hSouth to Nort
North to South
7 AM to 1 PM
1 PM to 10 PM
39.
Kalidas Patitundi Lane
mple Rd)(Upto Kali Te
South to North
North to South
7 AM to 1 PM
1 PM to 10 PM
40.
h
uth
Roy St
South to Nort
North to So
7 AM to 1 PM
1 PM to 10 PM
41.
t
Justice Chandra Madhab Rd
West to Eas
East to West
7 AM to 1 PM
1 PM to 10 PM
42.
gin Rd up to h
h
Justice Dwarkanath Rd (From El
Justice Chandra Madhab Rd)
North to Sout
South to Nort
7 AM to 1 PM
1 PM to 10 PM
43. Chakeriaberia Rd (South)
West to East
East to West
7 AM to 1 PM
1 PM to 10 PM
44.
7 AM to 1 PM
1 PM to 10 PM
Royd St
East to West
West to East

22
Optimised Route Structure
DC Dankuni >> Area 5 >> Kolkata
>> Area 10 >>
Area 5 >> Kolkata

23
Area 5 >> Area 6
Area 5 >> Area 4 >> Kolkata

24
Area 1 >> Area 7 >> Area 2 >> Kolkata

25
Area 7 >> Area 8
Area 2 >> Area 9

26
Kolkata Logistics Operation Spencer’s
FLEET
Types of Vehicle Used : Trucks
No of Vehicles Used : 10 (Ten)
Capacity Of each vehicle : 4.7 T
Vehicle Nos : WB41C6356,WB41C9559,WB41C3310, WB41C6357,
WB41C6355,WB41C3310,WB23A6763, WB23A5151
WB41C5937,WB41C5938
TARIFF STRUCTURE
Monthly Commitment/Vehicle : Rs 39000/month/truck or 3000km/month/truck
Extra Usage Charge : Rs 13/km
LOADING TYPE
Type of loading : Manual
Weight of Loads : 3 T
No of Crates in each load ; 90(ninety)
Time of loading : 5.30AM to 6.00AM
No of loading gates : 2(two)
LOADING SCHEDULE
Mon Tue Wed Thurs Fri Sat Sun
E & E FMCG
NON
FOOD
HWP FMCG NON
FOOD
FMCG
FOOD
STAPLES E & E STAPLES
FMCG FOOD
INVENTORY
FMCG Non Food: Moderate
FMCG Food: Moderate
Staples : Moderate
HWP : igh
Garments: Moderate
E & E
H
: Less

27
LIVERY ACTIVITY
t
IVITY
oods Acceptance Docket in case of discrepancies.
HEDULE
PRE DE
Delivery Schedule : No
Delivery Forecast : No
ibleSchedule Time for delivery : flex
Indent : generated & modified daily by stores/auto indent if no
generated
Delivery : as per generated indent
POST DELIVERY ACT
Despatch Report ; Excel report after truck dispatch
PGI : Post Goods Issue report
RN ; NoG
GAD ; G
SCCITY ENTRY/EXIT TRAFIC
8AM TO 12AM : No entry for heavy vehicles
y vehicles4PM TO 8PM : No entry for heav

28
Logistics Activity from DC (July)
RIBUTION AT NODES FROM DC(ACTUAL)
time(1 way) time (stores)
e
(2 way)
AREA WISE TIME DIST
node Area Running
Avg running Avg waiting Total tim
Proposed Avg
Km(2 way)
South city A3 100 1:45 1:40 5:10
Rashbehari A2 85 1:40 2:00 5:20
Mani Square A1 65 1:25 2:00 4:50
Bangur- A
Dumdum-
P.Kanan
58 2:10 1:30 5:30
4
Dunlop-B.T.Rd- A5-A6
1:10 1:00 3:20
R.N.T
42
Laketown-
Kalindi
A4-A6
56 2:00 0:40 4:40
Avishar-Patuli-
S.neer
A7-A8
102 3:00 1:25 7:25
SPDL-
TollyHeights-
M’Tala
A9-A8
96 2:30 2:25 7:25
TollyClub-
SPDL
A9
99 1:50 1:20 5:00
Liluah-Belur A10 33 2:08 0:32 4:48

29
AREA WISE DEMAND DISTRIBUTION AT NODES(ACTUAL)
NODE
POS
AREA DESPATC
TOTAL AVG
/DAY
PRO ED
HES DESPATCHES
Mani Square A1 6 62 209247 47
Rash Behari A2 6 66 222648 48
South City A3 7 71 239143 43
Bangur Avenue
A4
2138
9622 320
Lake Town 3113
Dumdum Park 2282
Prafulla Kanan 2089
Belghoria
A5
2
6291 210
609
Dunlop 2236
R.N.Tagore 1446
Sinthi 48 Block A6 2028
4117 138
Kalindi 2089
Avishar A7 4911
8367 279
Patuli 3456
Tolly Heights
A8
2182
5554 186Shanti Neer 1642
M atala 1730ahamay
Springdale A9 3
4261 142
899
T b 362olly Clu
Liluah A10 2613
5222 174
Belur 2609
Ballygunge Circular Rd A11 1561 1561 52

30
Optimesed Logistics Distribution
PTIMISED LOGISTICS DISTRIBUTION AT DIFFERENT AREAS
NODES AREA TRUCK
NO
G
TIME(DC)
D
TIME (DC)
IVAL
TIME(AREA)
WA
TIME(A
RN
TIME(DC)
O
LOADIN EPARTURE ARR ITING RETU
REA)
Mani Sq
T1
7:40 2:00 Hrs 12:30A1 4:15 6:15
Belur,
Liluah
5 14:4 16:53 0:32 Hrs 18:00A10 12:4 5
Rash
behari
T2 9:00 11:30 13:05 14:45 Hrs 21:00A2
South
T3 0 11:30 13:10 2:00 Hrs 21:00
City
A3 8:3
Bangur,
L.Town,
Dumdu
P.kan
T4
5 6:1 8:25 1:30 Hrs 12:45
m,
an
A4 4:1 5
Bangur,
L.Town,
Dumdum,
P.kanan
(or A8)
A4 13:30 15:30 17:10 1:30 Hrs 21:00
Belghoria,
Dunlop,
R.N.T
A5
T5
4:45 6:45 7:55 1:00 hrs 13:00
Avishar,
Patuli
(or A3)
A7 13:30 15:30 18:30 1:25 Hrs 21:00

31
BT Rd,
Kalindi
13:00
A6
T6
4:30 6:30 8:30 0:40 Hrs
Mani Sq
(or A2)
A1 14:00 16:00 17:25 2:00 Hrs 21:00
Avishar,
A7 T7 9:00 11:15 14:15 1:25 Hrs 21:00
Patuli
T.Heights,
T8S.Neer,
M’Tala
A8 8:30 11:45 14:15 2:25 Hrs 21:00
Sp’dale,
b
A9 8:00 11:15 13:05 1:20 Hrs 21:00
T’Clu T9
B.C.R A11 ---- ------- 14:10 0:18 Hrs --------
Belur,
Liluah
T10
A10 4:30 6:30 8:38 0:32 Hrs 10:20
S.City
(or A2)
A3 12:00 16:00 17:40 2:00 Hrs 21:00
OPTIMISED LOGISTICS DISTRIBUTION AT DIFFERENT AREAS
ARE
A
TRU
K
NO
AVG
DESPATCHE
S
(50% 2
DES)
TOTAL
DESPATCHE
S
AVG
KM/DA
Y
TOTAL(AVG)
KM/DAY
(10%
TOTAL
(AVG)
KM
NODES C
ND
MARGIN) /MONTH
Mani Sq A1
T1
209
296
65
98+10%
=
3240
108
Belur,
Liluah
A
50% of
174=87
10 33
Rash
behari
A2 T2 222 222 85
85+10%
=93
2790
South
City
A3 T3 239 239 100
10
=110
3300
0+10%

32
Bangur,
L.Town,
Dumdum,
P.kanan
A4
T4
320
480
58
116+10%
=128
3840Bangur,
L.Town,
Dumdum, A4
50% of
320=160
58
P.kanan
(or A8)
Belghoria
A5
T5
210
350
42
14
=169
5070
Dunlop,
R.N.T 4+10%
Avishar,
Patuli
(or A3)
A7
50% of
279=140
102
BT Rd,
Kalindi
A6
T6
138 56
12
=133
243
1+10%
3990
Mani Sq
(or A2)
A1
50% of
209=105
65
Avishar,
79
Patuli
A7 T7 2 279 102
102+10%
=112
3360
T.Heights,
S.Neer,
M’Tala
A8 T8 186 96
=106
186
96+10%
3180
Sp’dale,
T’Club
A9
T9
142
194
99 104+10%
=114
3420
B.C.R A11 52 5
Belur,
Liluah
A10
T10
174
294
33
133+10%
=146
4380
S. City
A3
50% of
239=120
100

33
VEHICLE UTILISATION REPORT(JULY-ACTUAL)
SUM OF BALANCE 3294
ACTUAL VEHICLE NO TOTAL UTILISATION
WB41C635 2781 93%7
WB41C6356 2 93%795
WB41C6355 2905 97%
WB23A6763 2917 97%
WB41C3310 2948 98%
WB41C6543 2950 98%
WB41C5938 2988 %100
WB41C593 2 100%7 999
WB41C9559 3050 102%
WB23A5151 3097 103%
GRAND TOTAL 29430 98%
2600
2650
700
2750
2800
2850
900
2950
3000
050
3100
W
B41C63W
B41C6356
W
B
763
W
B41C331W
B41C63W
B41C5938
W
B
37
W
B41C9559
W
B23
2
2
3
3150
57
41C63W
B23A6
55
0
43
41C59
A5151

34
OPTIMISED VEHICLE UTILISATION REPORT
SUM OF BALANCE
VE TOT UTIHICLE NO AL LISATION
T1 3240 108%
T2 2790 93%
T3 3300 110%
T4 3840 128%
T5 5070 169%
T6 3990 133%
T7 3360 112%
T8 3180 106%
T9 3420 114%
T10 4380 146%
GR 3657 122AND TOTAL 0 %
0
1000
2000
3000
4000
5000
6000
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10

35
Conclusion
From the actual Vehicle Utilisation Report it is clear that highest achieved
utilization is 103%.The procedure followed is as& when the vehicle is available is
booked for the next required slot(despatch).Also the dispatch area is chosen randomly
when demand arises although there are chosen delivery areas.There is no delivery
forecast or schedule followed.
For optimization I followed a chosen area approach in which nodes are tagged
into areas as per geographical proximity.The route is also chosen as per Kolkata police
data so that vehicle can reach destination in their defined route.The rule of thumb
followed is the lowest the area distances from DC the vehicles are re utilized same day.
Hence in this case the areas are prioritized for delivery in the morning so that vehicles
can return to DC in time for next schedule the very same day.The areas which are distant
from the DC are not chosen for re-scheduling same day cleary for NO ENTRY at city
CHECKPOINT.In this way 5 areas namely A1,A4,A5,A6 &A10 are dispatched in the
morning.This vehicles are re utilized in other areas and chosen accordingly so that total
vehicle running Km gives more than 100% utilization factor.The optimesed highest
achieved utilization is 169% and min is 93%.

36
Bibliography
EBSITES VISITED
shion.com/industry-article/free-retail-industry-
article/indian-retail-industry-its-growth-challenges-and-opportunities/indian-
Retail Outlets Address Sheet
Vehicle Utilisation Report
W
1) www.spencersretail.com
2) www.rpg.in
3) http://www.fibre2fa
retail-industry-its-growth-challenges-and-opportunities1.asp
4) http://www.scribd.com/doc/5590611/Indian-Retail-Industry
LOGISTICS DATA FOR JULY
1) Ware House (DC) Excell sheets
A) Vehicle Running Time Management
B) Vehicle Running Distance Management
C) Total No of Despatches/day
2)
3)

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