A Journey Book

By Jainpur MWHACKNOWLEDGEMENT

We are indebted to Mr. Suresh Menon for his guidance, encouragement and valuable

advice. His invaluable opinion time and again has helped us in completion of this Journey

Book.

I express my appreciation to Mr. Vinay Kumar Sharma & Mr. Ashish Srivastava for their

cooperation

I also thank Mr. Purvin Patel (Chief Operating Officer – RKFL) for the keen interest shown.

INDEX

INTRODUCTION

COMMANDOES – JAINPUR MWH

PRODUCT PORTFOLIO

BEGINNING OF THE JOURNEY

STARTING HURDLES

VOLUMES HANDLED

INVENTORY MANAGEMENT

ORDER SERVICE TIME

CONTINUOUS IMPROVEMENT

PRODUCTIVITY

ACCOLADES

EXECUTIVE SUMMARY

INTRODUCTION

About Jainpur:

Jainpur is the main Industrial Area which is located in District Ramabai Nagar and it

is around 38 kms. from Kanpur City. The U.P. State Industrial Development

Corporation (UPSIDC) has developed a large industrial area measuring about

294.70 acres in Jainpur.

The Major Industries who have set their base at Jainpur are:

1) Pepsico India Holdings Pvt Ltd. (Beverage Division)

2) Nerolac Paints Ltd.

3) Supreme Industries Ltd.

About Radhakrishna Foodland Pvt. Ltd.:

With over 35 years of rich and varied experience, Radhakrishna Foodland Private

Limited (RFPL), the pan-India Supply Chain Management Specialist, is the industry

leader in the Supply Chain Management of Food, Near Food, Agri-Services and

Pharmaceuticals.

Radhakrishna Foodland Pvt. Ltd. is proud to be associated with M/s. Pepsico India

Holding Pvt Ltd (Beverage Division) at Jainpur. The Jainpur facility (A Mother

warehouse) is approx 1.5 lacs sq.ft. and is the biggest warehouse in the country.

About Pepsico India Holding Pvt. Ltd.

PepsiCo established its business operations in India in the year 1989. It is now the

4th largest consumer products company in India. It has more than 36 bottling

plants including 13 Company & 23 Franchise owned ones.

COMMANDOES – JAINPUR MWH

PRODUCT PORTFOLIO

Dinkar KhandelwalDC Manager

Total Experience: 10 years.

Qualification: MBA (Marketing), B Com and Diploma in Materials Management

Dinkar KhandelwalDC Manager

Total Experience: 10 years.

Qualification: MBA (Marketing), B Com and Diploma in Materials Management

Vinay Kumar SharmaShift Incharge

Total Experience: 17 years.

Qualification: Bachelor in Arts

Vinay Kumar SharmaShift Incharge

Total Experience: 17 years.

Qualification: Bachelor in Arts

Ashish SrivastavaShift Incharge

Total Experience: 4 years.

Qualification: Bachelor in Arts

Ashish SrivastavaShift Incharge

Total Experience: 4 years.

Qualification: Bachelor in Arts

BEGINNING OF THE JOURNEY

Radhakrishna Foodland Pvt Ltd (RKFL) was awarded the CFA contract by Pepsico

India Holding Pvt. Ltd. (PIH) in March 2010 at Jainpur. Jainpur was the 1st Mother

warehouse for PIH admeasuring 1.5 Lac sq.ft.

The Key focus area for RKFL was to handle the four main pillars of the warehouse

operations viz.

1) Inward

2) Storage

3) Dispatch

4) Compliance

STARTING HURDLES

I. Infrastructure

Road

At the beginning, there were no roads built around the warehouse. There was a

raw road with huge amount of dust and pebbles. Great difficulty was faced during

speedy dusty winds.

Office

There was no proper office in place from 19th March 20100 till end of April 2010.

The Warehouse staff used to be work from a temporary room outside the

warehouse which was again blown away by the speedy dusty winds.

IT Infrastructure

Initially during the inception of the MWH, there was no VSAT Connection. Hence

SAP was operated by Data Card. Using Data Card for SAP Connectivity delayed the

work as there was a frequent breakdown in SAP Connectivity. This continued till

May 2010. In May 2010, VSAT connection was implemented which resulted in

smooth SAP connection

II. Training

No format training was provided to the warehouse staff. Training included the

following

SAP Training

SOP Training

Documentation

Training was finally imparted to all the warehouse staff in June 2010.

III. Operational Issues

High Shrinkages due to shrink wrapped packing

Difficulty in stock taking

Stock level was approx 4.0 lac cases by the end of April 2010.

Vehicle availability issues till April 2010.

Expiry stocks amounting to approx 70000 cases received from various

warehouses from Sept 2010 to Jan 2011.

Preforms were stocked from at the warehouse amounting to 40% of space

during the period October 2010 to April 2010.

High unloading pressure of vehicles at MWH from Plant since beginning.

Stock received during April 2010 was around 50000 cases from Jainpur Plant.

VOLUMES

We have handled close to 1.35 crore cases from March 2010 to April 2011.

Month wise details given below.

INVENTORY MANAGEMENT

Initially all the PET stocks were received shrink packed. It was extremely difficult in

storing these products. There was huge amount of leakages and damages

happening at the warehouse.

Currently, all the PET stocks are received in Corrugated boxes which are stacked

properly as per the PIH norms resulting into minimal damages.

Waste Error & Theft (WET) is under control i.e. within the approved norms.

ORDER SERVICE TIME

Order Service time is defined as the time difference between when the order is

punched in SAP and the time it is executed.

Order Service Time = Order Executed – Order entered in SAP.

Eg. An order of a distributor is received on 28th May 2011 at

9.00 pm and it was invoiced to the distributor on 29th May

2011 at 11.30 am. Hence the Order service time for this

particular order is 14.5 hours.

The benchmark laid down by Pepsico is 24 hours.

However, Jainpur MWH is able to achieve the same between 12 hours – 16

hours.

What hampers OST?

Stock Availability &

Vehicle Availability

CONTINUOUS IMPROVEMENT

Continuous Improvement is what Jainpur MWH believes in. Jainpur MWH will always

strive hard to achieve the best possible result it can and will also try to acclaim the

1st position in India.

Jainpur MWH has seen drastic improvement in terms of Warehouse Compliance.

Warehouse Compliance is basically measured into 4 parameters viz.

Statutory Compliance

Inventory Compliance

Cut off Compliance / Invoicing / Dispatch

Godown Hygiene & Housekeeping Compliance

Parameters Jan 2011 Feb 2011 Mar 2011

Statutory Compliance 54% 100% 100%

Inventory Compliance 85% 88% 88%

Cut off Compliance / Invoicing / Dispatch 71% 86% 86%

Godown Hygiene & Housekeeping Compliance 77% 83% 97%

Overall Compliance 75% 88% 93%

Below mentioned Graph is self explanatory.

SOARING HIGH

PRODUCTIVITY

Productivity is the key area where every warehouse is focused on. Productivity is

also part of Continuous Improvement.

Productivity success is based on following.

Prioritize and plan the work

Right Attitude

Organize your thought

Do the right thing

Use resource smartly

Commitment

Take Ownership

Improving Continuously

Vision

Influence Other

Team Work

Your effort

Jainpur Productivity for various parameters is as follows:

1) Labor Productivity : 900 cases per day

2) Forklift Productivity: 18000 cases per day

3) Loading Productivity: 4 hours per vehicle (including documentation)

4) Unloading Productivity: 2 hours per vehicle (including GRN)

ACCOLADES

Congratulation messages for improvement in Warehouse Compliance.

Huge well done to you and the team at Jainpur. I know we are

having a hard time from them but real tigers always come out

winning.... by Mr. Purvin Patel on 8th April 2011

Congratulations … by Mr. Bala Iyer and Mr. Vishal Sharma on

8th April 2011

What a performance!!!! Real proud of you guys. Keep it up..u will

scale great heights!! .... by Mr. Purvin Patel on 12th May 2011

Congratulation messages from PIH for highest dispatches in a single day.

Jainpur MWH had dispatched closed to 55K raw cases in a day.

Good show Dinkar. I am now convinced that Jainpur MWH has

built such strong momentum that it can dispatch 1L cases

(outward) per day. Look forward to that day. All the best …..  By

Vishal Kaul (Unit Head North) on 30th March 2011.

Great improvement team…. Keep it up.. by Mr. Ashish Dubey

(Product Availability Manager – North) on 27th March 2011.

Good show!!!!   You people have made 55 k raw dispatched on

25.03.2011. Very good, keep it up…. by Parmeshwar Paul on

26th March 2011.

Congratulation messages from PIH for adherence to warehouse

compliance initiated by BU, Gurgaon

Good show Team….and delighted to see the progress on the Supply Chain front…especially the proactive transparency! Keep up the good work and look forward to similar record breaking efforts in the days to come….All the best! But I would also add….This is just the beginning…as ‘Picture Abi Baaki Hai Mere Dost …… by Mr. Vishal Kaul (Unit Head – North) on 28th March 2011.

EXECUTIVE SUMMARY

Overall, Jainpur MWH has gone through Roller Coaster Ride. There has been

significant improvement in last 4 months. Jainpur MWH is now capable of handling

120 -130 trucks a day. Jainpur MWH is also capable of dispatching approx 60000

cases a day.

This could not be possible without the support of the Jainpur Team, the RKFL

management and the PIH team.

Journey

Begins…………………………………