A STUDY ON MATERIAL HANDLING PROCESS

AT AIREX INDIA

A PROJECT REPORT

Submitted

By

KARKKI P

REG NO: 723021631021

In partial fulfillment for the award of the degree

of

MASTER OF BUSINESS

ADMINISTRATION IN

LOGISTICS MANAGEMENT

SRI VENKATESWARA INSTITUTE

OF INFORMATION TECHNOLOGY
AND MANAGEMENT

ETTIMADI, COIMBATORE.

ANNA UNIVERSITY,

CHENNAI-600025.

MAY - 2023
SRI VENKATESWARA INSTITUTE OF INFORMATIONTECHNOLOGY
AND MANAGEMENT
ETTIMADI, COIMBATORE-641112.

Department of Management Studies

Project work

MAY 2023
This is to be certify that the project work done by

KARKKI P

Register No: 723021631021

Of MBA during 2022-2023

PROJECTGUIDE DIRECTOR

Submitted for the Project Viva-Voce Examination held on

INTERNAL EXAMINER EXTERNALEXAMINER

 BONAFIDE CERTIFICATE

This is to certify that this project report titled “A STUDY ON MATERIAL HANDLING
PROCESS AT AIREX INDIA” is the bonafide project work of Mr. KARKKI.P,
Registration Number: 723021631021 who carried out the work under my supervision.
Certified further to the best of my knowledge the work reported here in does not form part of
any other project report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.

Dr.VIMALA.K.V, MBA, M.PHIL, Ph.D

Associate.Professor,
Department of Management Studies,
Sri Venkateswara Institute of Information Technology and Management.
 05.05.2023
PROJECT COMPLETION CERTIFICATE

To Whomsoever It May Concern

This is to certify that Mr. P. KARKKI holding register number : 723021631021 MBA Student of Sri Venkateswara

Institute of Information Technology and Management, Coimbatore had successfully completed his project work in

our organization from 10.02.2023 to 04.05.2023.

During the period of project work, had done project titled “ A STUDY ON MATERIAL HANDLILNG PROCESS

AT AIREX INDIA” we wish him all success in his future.

No:43/22, Jossier Street , Real enclave , 1st Floor, Nugambakkam High Road,
Chennai – 600034, Ph.0444269050, Website: WWW.airexindia .com
 DECLARATION

I KARKKI P hereby declare that the project report titled “A STUDY ON MATERIAL

HANDLING PROCESS with reference to AIREX INDIA” being submitted by me

during the academic year 2022-2023 to the department of Management studies, Sri

Venkateswara Institute of Information Technology And Management, Coimbatore. In

partial fulfillment of the award of the degree of MASTER OF BUSINESS

ADMINISTRATION is a bonafide work carried out by me.

I also declare that this project work is a result of my own effort and that has not been

submitted to any other university for the award of the degree.

KARKKI P
REG.NO: 723021631021

I certify that the declaration made above by the candidate is true.

Dr.VIMALA.K.V, MBA, M.PHIL, Ph.D

Associate.Professor,
Department of Management Studies,
Sri Venkateswara Institute of Information Technology and Management.
 ACKNOWLEDGEMENT

First, I extend my heart-felt gratitude the Chairman Commander K. Velu and Mrs.

Mehala Velu, secretary of SRI VENKATESWARA GROUP OF INSTITUTIONS for

providing us with all sorts of support in completion of my project.

I thank our Head of the Department Dr.G.Alex Rajesh, Department of Management

Studies of SRI VENKATESWARA INSTITUTE OF INFORMATION

TECHNOLOGY AND MANAGEMENT, for permitting me to undertake this project as

part of the curriculum which upgrades my academic growth.

I thank my project guide Dr.Vimala.K.V, Department of Management Studies for the

support, guidance and timely assistance for the project to have come out in flying colors.

I thank my parents, friends, and well-wishers. I also thank AIREX INDIA PRIVATE
LIMITED, inputs providing to me for completing my project.

I thank the almighty for giving me the strength and power to finish this project successfully.

KARKKI.P
 ABSTRACT

The highly competitive environment, linked to the globalization phenomena, demands

from companies more agility, better performance and the constant search for cost
reduction. The present study focused on improvements in internal materials handling
management, approaching the case of a large company in the automotive industry.
Materials handling is intrinsically associated with production flow. Because of this, it has
direct influence on transit time, resources usage, and service levels. Materials handling
study requires that several elements are considered. The first is a handling system project,
which covers activities of sequencing, velocity.

The objective was to evaluate, in a systematic way, the impact of implemented changes in
materials handling management on the internal employee’s perceptions of cost, methods,
and types of materials, effectiveness in warehouse operations, agility problems and ways
for succeeding. A literature review preceded a descriptive study in the company’s
warehouse unit and the questionnaires were completed by 120 employees directly involved
in the process. Analyzing the answers, it was possible to suggest that management
understood that the new materials handling management system enlarged service agility
and reliability and reduced costs, which caused an improvement in overall satisfaction.
 TABLE OF CONTENTS

CHAPTER No. TITLE PAGE No.

1 INTRODUCTION

1.1 INTRODUCTION 1

1.2 INDUSTRY PROFILE 2

1.3 COMPANY PROFILE 7

1.4 SERVICE PROFILE 11

2 REVIEW OF LITERATURE

2.1 THEORTICAL REVIEW 13

2.2 RESEARCH REVIEW 18

2.3 RESEARCH GAP 24

3 RESEARCH METHODOLUGY

3.1 RESEARCH METHODOLOGY 25

3.2 STATEMENT OF THE PROBLEM 25

3.3 NEED FOR THE STUDY 25

3.4 SCOPE OF THE STUDY 26

3.5 OBJECTIVES OF THE STUDY 26

3.6 RESEARCH DESIGN 26

3.7 METHODS OF DATA COLLECTION 27

3.8 TOOLS FOR ANALYSIS 28

3.9 LIMITATIONS OF THE STUDY 30

3.10 CHAPTER SCHEME 30

4 DATAANALYSIS & INTERPRETATION

4.1 PERCENTAGE ANALYSIS 31

4.2 CHI – SQUARE ANALYSIS 42

4.3 WEIGHTED AVERAGE METHOD 44

5 FINDINGS, SUGGESTIONS &

CONCLUSION

5.1 FINDINGS 47

5.2 SUGGESTIONS 49

5.3 CONCLUSION 50

BIBLIOGRAPHY 51

ANNEXURE 52
 LIST OF TABLES

TABLE NO. PARTICULARS PAGE NO

1 POSITION CATEGORY 31

2 METHODS USED TO 32
MANAGE MATERIALS

3 EFFECTIVE MODERN METHODS IN 33

WAREHOUSES

4 CURRENT SYSTEM IN WAREHOUSES 34

5 USE OF AUTOMATED HANDLING 35

MACHINE &EQUIPMENT POSITIVELY
HANDLING PROCESS

6 LOADING & UNLOADING 36

7 GOODS STORED IN WAREHOUSE ARE 37

SORTED ACCORDING TO COMPANY
NEEDS

8 TRANSSHIPMENT OF MATERIALS 38

9 POLICES OF AIREX IN DELIVERIES 39

10 CLEAR LOGISTICS PLAN 40

11 INSUFFICENT HANDLING & DELAY 41

OF CLEARING CONTAINERS

12 (i) POLICIES * POSITION CROSS 42

TABULATION

(ii) CHI-SQUARE TEST OUTPUT 42

13 (i) USE OF AUTOMATED 44

HANDLING MACHINE AND
EQUIPMENT POSITIVELY
HELPS CONTAINER
 CLEARANCE
(ii) DO YOU AGREE THE POLICIES OF 45

AIREX INDIA HELPED TO IMPROVE ON

THE EFFICIENCY AND
EFFECTIVENESS
OF THE DELIVERIES MADE
(iii) THE GOODS STORED IN WAREHOUSE 46
ARE SORTED ACCORDING TO
COMPANY NEEDS
 LIST OF CHARTS

CHART NO. PARTICULARS PAGE NO

1 POSITION CATEGORY 31

2 METHODS USED TO 32
MANAGE MATERIALS

3 EFFECTIVE MODERN METHODS 33

IN WAREHOUSES

4 CURRENT SYSTEM IN WAREHOUSES 34

5 USE OF AUTOMATED HANDLING 35

MACHINE &EQUIPMENT POSITIVELY
HANDLING PROCESS

6 LOADING & UNLOADING 36

7 GOODS STORED IN WAREHOUSE ARE 37

SORTED ACCORDING TO COMPANY
NEEDS

8 TRANSSHIPMENT OF MATERIALS 38

9 POLICES OF AIREX IN DELIVERIES 39

10 CLEAR LOGISTICS PLAN 40

11 INSUFFICENT HANDLING & DELAY 41

OF CLEARING CONTAINERS
 CHAPTER 1
1. INTRODUCTION
INTRODUCTION
It’s no secret that the supply chain of most companies remains an area of untapped
value. Executives are broadly aware of opportunities to reduce supply chain
costs/assets and improve processes, but they need to put a few basic principles to work
to capture more value from the improvement initiatives. These days, an executive
doesn’t make it to the top without being aware of some fundamental supply chain
issues.
• Under-utilized distribution centers are expensive
• Excess inventory is a waste
• Transportation modes should satisfy customers at the best possible cost.

Armed with this basic knowledge, each year's list of supply chain initiatives is typically
designed to keep supply chain cost and service within an “acceptable” range. These kinds
of initiatives make sense at a managerial level and satisfy the need for purposeful direction,
but most companies, if they follow a few basic principles, can obtain greater value from
supply chain initiatives.

Information technology has had a substantial impact on supply chains. Scanners collect
sales data at the point-of-sale and electronic data interchange (EDI) allows these data to be
shared immediately with all stages of the supply chain. The application of these
technologies, especially in the grocery industry, has substantially lowered the time and cost
to process an order, leading to impressive improvements in supply chain performance
(Cachon and Fisher 1997, Clark and Hammond 1997, Kurt Salmon Associates 1993).

As a result of these success stories, there is now a general belief within industry that
capturing and sharing real-time demand information is the key to improved supply chain
performance. The purpose of this research is to find out the principles of materials handling
GE stamping. This is done through a structured questionnaire, which will be distributed
among the respondents working for the company. Collected samples are interpreted and
analyzed to arrive at the findings. From the study findings, suggestions are recommended
to the organization for an effective valuation of stock.

1
 INDUSTRY PROFILE

The global logistics market reached a value of US$ 1,171 Billion in 2017. The global
logistics market in its present state has come about as a result of an amalgamation of
supply side and demand side trends. The rapid proliferation of trade agreements among
various nations is the major demand driver of the global logistics market. Additionally, the
initiatives aimed at increasing globe trade activities have expanded the demand for logistics
in order to keep pace with the rising needs of importers and exporters.

Logistics refers to the process of planning and coordinating resources and services from the
point of origin to the point of consumption. This process provides efficient and effective
transportation and storage of goods and services. The major components of logistics
involved in the proper functioning of an organization or a business include inventory
management, inbound and outbound transportation, material handling, warehousing, etc. In
recent years, the logistics industry has benefitted from the advancements made in
technology, integration, globalization, legislation, and confederations.

The advancements in technology which involve automated material handling equipment

biometrics, GPS etc… aid organizations and businesses to work proficiently, thereby
spurring the growth of the logistics market across the globe. The upsurge in internet
retailing and the increasing popularity of online shopping are some of the other factors
supporting the market growth. Looking forward, the market is projected to reach a value of
US$ 1,374 Billion by 2023, registering a CAGR of 2.7% during 2018-2023. In a move to
cut down costs, producers are exploring around the globe in search for the lowest cost
exporters/suppliers. Lured towards developing countries in south-east Asian region for
lower-wages, transportation industry is stretching its reach longer than ever before. Major
players are focusing overseas markets for outsourcing cheap manufacturing as well as
expanding their businesses. And acceleration in manufacturing capacity is driving many
producers to shutter superfluous plants. The rest of the plants are gaining the developing
rhythm, but must export overseas now to sustain their positions in the market.

2
The business players always look for just-in-time shipments, thus it aspires enhanced
build- to-order model and lot-size-of-one shipments, which results more pressure on
logistics industry. Logistics industry has usually been old-fashioned traditions. Usually, the
shipping personals would decide for carriers, customs agents and so on. Normally, their
search doesn’t go beyond the initial service providers who cover all the minimum
requirements. Once the shipment kicks-off its journey towards its destination, it is really
hard to assume reaching time. For example, a ship that started its journey from Asia could
meet harsh weather, which may delay its reaching on the West Coast for three days. On the
other hand, the trucks at the West Coast would have to wait and sat empty and ideal for the
three days, which would certainly result in big loss. These kind of unpredictable losses are
usual in international logistics. Thus, even the largest multi-national companies avoided
logistic services on a worldwide basis. They opt to establish their operations in each
country and let them to manage logistics individually.

3
INDIAN SCENARIO
The country's logistics industry is projected to be worth $215 billion by 2020-21, recording
a 10 per cent compounded annual growth rate (CAGR) over its approximate size of $160
billion in 2016-17. The industry's growth will be fuelled by the strides in manufacturing,
retail, fast-moving consumer goods and e-commerce sectors. Development
of logistics related infrastructure, like dedicated freight corridors, logistics parks, free trade
warehousing zones and container freight stations, are expected to improve efficiency, a
report by CARE Ratings observed. At present, the logistics sector is dominated by
transportation, which has over 85 per cent share in value terms. Its share is set to remain
high for the next few years. The remaining 15 per cent share is accounted for by storage.
The sector is employment intensive, absorbing 22 million people.

Logistics costs have a significant bearing on exports. It is estimated that slashing logistics
costs by 10 per cent could widen exports by five to eight per cent. Steep logistics costs in
India vis-a-vis other nations have been a vexing issue. Logistics costs as a percentage of
the country's gross domestic product (GDP) is 13-14 per cent. The figure is higher
compared to 10-11 per cent for BRIC countries and eight to nine per cent for developing
nations. USA spends 9.5 per cent of the GDP on logistics, while Germany is even more
competitive with a share of eight per cent. Higher logistics costs in India could be ascribed
to the lack of efficient inter-modal and multi-modal traditional systems, the ratings agency
said in its report. Going ahead, the logistics costs as a share of the GDP is expected to
decline, led by initiatives like the implementation of goods and services tax (GST),
investments in road infrastructure, development of inland waterways and coastal shipping,
and the thrust on dedicated freight corridors.
At present, the Indian logistics industry is highly fragmented and unorganized. Owing to
the presence of numerous unorganized players in the industry, it remains fragmented, with
the organized players accounting for approximately 10 per cent of the total market share.
With the consumer base of the sector encompassing a wide range of industries, including
retail, automobile, telecom, pharmaceuticals and heavy industries, the logistics industry has
been increasingly attracting investments in the last decade.

4
Further, the logistics industry faces challenges such as under-developed material handling
infrastructure, fragmented warehousing, multiple regulatory and policy-making bodies,
lack of seamless movement of goods across modes, and minimal integrated IT
infrastructure. In order to develop this sector, focus on new technology, improved
investment, skilling, removing bottlenecks, improving intermodal transportation,
automation, a single-window system for giving clearances, and simplifying processes
would be required. Investment into India’s supply chain infrastructure is gaining
momentum. The introduction of the Goods and Services Tax (GST), liberalizing foreign
direct investment (FDI) rules, and increased government spending has helped spur
growth in the sector. India’s aspiration to become a global manufacturing powerhouse and
the government spotlight on ‘Make in India’ also compels nationwide supply chain reform,
prompting several federal and state- based schemes and investment incentives. The supply
chain industry has a cascading impact on almost all aspects of trade and retail. As India
opens its economy further, financing the improvement of this linkage sector is vital for
business growth. A modernized and efficient supply chain improves the ease of doing
business, scales down the costs of manufacturing, and accelerates rural and urban

5
consumption growth due to better market access.

6
Until recently, infrastructural woes had a crippling effect on the supply chain network in
India. Suppliers, manufacturers, and retailers had to factor in delays in the movement of
goods between state borders due to complicated taxes and transport lines running over
capacity, increasing overall costs. With the new reforms coming into play, a gradual
resolution of these problems seems imminent. In the last three years, India’s supply chain
sector has seen an influx of capital, both foreign and domestic. Firms like Future Supply
Solutions have raised almost US$2 billion (Rs 130 billion) in investments from domestic
and foreign channels.

The French firm, FM Logistics, recently acquired Pune-based Spearhead Logistics,

investing over US$8 million (Rs 500 million) with further plans to invest US$46 million
(Rs 3 billion) to set up warehouses all over India. The Delhi-Mumbai Industrial Corridor
and Development Corporation (DMICDC) has awarded companies over US$2.3 billion (Rs
150 billion) in contracts for the development of multimodal logistics hubs in Maharashtra,
Gujarat, and the National Capital Region (NCR). They are in the process of granting
another US$1.5 billion (Rs 102 billion) in contract packages for construction of the same in
the states of Uttar Pradesh and Haryana. The proposed hubs in Maharashtra, Gujarat, and
the NCR will provide end-to-end supply chain services, such as small processing facilities
(grading and packaging) and final delivery and transport services. Plans to improve
regional connectivity through road, rail, and inland waterways are already ongoing. In fact,
India’s 2018 budget saw the highest fiscal allocation for infrastructure spend, at about
US$95 billion (Rs 6 trillion). Below we discuss critical components of India’s supply chain
infrastructure as it benefits from planned government spending, easier investment rules,
and various tax and fiscal incentives.

7
 COMPANY PROFILE

AIREX is an upcoming Integrated Logistics and

Express Service provider. AIREX has an extensive
domestic
network covering more than 900 locations covering more than 4200 pin codes. At AIREX
they believe that the genesis of our services is based on the feedback of our Customers,
individual player competencies, the gap that exists between Customer requirements,
present status of the industry and Service Provider capabilities. We at AIREX are revealing
our domain knowledge and expertise to create a value proposition to customers like you by
providing optimal Logistics Solutions that logically balances economy and efficiency,
while using Information Technology and the Internet. Their range of products and services
are designed to meet your changing needs in today's demanding market scenario where
staying ahead of competition is the key challenge. The Company is promoted by a team of
professionals having vast experience in the field of Logistics & Express service catering to
the Courier and Cargo segment together with Logistic Management with the virtue of
providing fastest possible service at a very competitive Economical price. We are one of
the upcoming integrated Express and logistic service providers; they have an extensive
domestic network covering 900 locations, and service over 160 countries through selected
International service providers of premier global repute. Their Company is promoted by a
team of professional having enormous experience in the field of Express service catering to
the Courier and Cargo segment together with Logistic Management with the virtue of
providing fastest possible service at Economical price.

PRIORITY SERVICES
AIREX Priority is designed, managed and delivered by a team of experts in critical
supply chain solutions. Every minute in your day to day business will be covered by
Airex just to make sure your commitment of deadlines is met.

Next day delivery is an overnight delivery service, where you can book a shipment for
pick up by noon or drop it of at the nearest Airex drop point by 4 p.m. and your parcel is
on its way to its destination. Airex assures the parcel to be its rightful required place by
next day. Let it be your valuable documents, parcels, gift for the loved ones. You have a
deadline line to meet then Airex next day delivery is what you need. AIREX have the
resilience and assets to handle even your most critical requirement of next day delivery

8
services through multi modal transportation to ensure your urgent freights gets where it
needs to go over night.

Time Critical Shipment:

They say time is money. Airex believes well-managed timeline is time earned. AIREX’s
team of experts design the most suitable timeline to assure your goods are moved in the
most appropriate manner to meet all the checkpoints within the time frame available.

 Using the fastest modes of transportation clubbed with the practical time
management and modes of moving your goods. Airex builds a chain of freight
movement where your parcels are moved as per the required timeframe to make
sure it reaches its destination on time.

 Checkpoints within the time frame available

 Using the fastest modes of transportation clubbed with the practical time
management and modes of moving your goods.

Airex builds a chain of freight movement where your parcels are moved as per the
required timeframe to make sure it reaches its destination on time. Be it dropping in at a
particular hour or minute making sure that your cycle of working is running with the
clock or making your valuables available every time you need them. Airex stands by its
words with its words with its words Anytime… Anywhere… No matter what the type
of shipment beating the clock for the most efficient supply chain solution is in Airex
bloodline. You can be sure that your shipment will arrive at the desired location at the
desired time in the desired form anywhere in India.in the desired location at the desired
time in the desired form anywhere in India.

Same Day Delivery:

Having an edge over the ground operations and practical working. Airex is available in
every Airport to make sure we connect the last minute parcels which need utmost
priority. Where the time in lost in the process of your working or last minute
requirements which pops up from nowhere, Airex helps you move across the country
with the next flight out. AIREX’s fast and reliable same day dedicated freight service is
your solution for all the unanswered prayers. Whether our most trained family members
are available at your disposal to make sure you do not regret the late decisions, miss

9
those valuable tenders or run out of time to bring a smile on your loved one’s beautiful
faces.

Airex Express
Airex Express has been designed keeping in mind all the basic requirements of a
company on daily bases. Let it be a daily dispatch or costing which needs to be reduced.
Airex takes it seriously when we say we have got you covered.

Vision
Our Vision is to establish excellent delivery Network, to provide quality service
through advanced infrastructure.
We have lead the way with investment in Information, Technology that helps us to ship
Track and Trace each and every shipment efficiently.

Strength lies in: -

Our vast network linked by advanced communication system and high quality service.
A wide range of service to cater to individual customer needs.

We offer wide range of service from single document to heavy parcels, warehousing,
logistic to global cash management service.

State of Art Technology

 Indigenously developed for Track and Trace
 We harness new Technology to streamline the process and provide service that
allows our customers to be more Competitive.
 The Computer system can process and present all necessary documentation. Track
out going and log incoming shipment via Barcode scanning and generate
standardize and Customized report.
Link of Domestic Presence
 Airex is an upcoming Domestic Express network with service to more than 900
location in India.
 We are continuously expanding and up grading our Network, Offices, Hubs and
Sub- Hubs.
Airex handles more than 20000 shipments every day throughout India.

10
Milestone

11
SERVICE PROFILE

12
Featured Services

13
 CHAPTER 2
2. REVIEW OF LITERATURE
THEORETICAL REVIEW MATERIAL
HANDLING& STORAGE
The Container traffic at major ports has almost doubled in the past 5-6 years. According to
estimates, the world container throughput will reach 1 billion TEUs by 2020, which is
almost double of the current container traffic. The emerging Asian & African Countries are
expected to be the prime movers in achieving this growth. Most of the shipyards are filled
with orders for container ships of over 13,000 TEUs capacity. These container ships will
form the major part of the world maritime fleet in the coming years. India is going to be the
preferred destination for a global manufacturing hub. This fact presents many opportunities
for the ports to change their current operation style and be ready for the foreseen surge in
demand of handling and faster evacuation of containers. Many investments have been
proposed and steps have been taken by various port authorities for attracting the container
traffic.

CFS and ICDs form a key part of the logistics industry infrastructure. A CFS/ICD can be
defined as “Common user facility with public authority status equipped with fixed
installations and offering services for handling and temporary storage of import/export
laden and empty containers carried under customs control. Transshipment of materials can
also take place from such stations.”

CFS/ICD accounts for ~14% of total warehousing market in India and is estimated at around
~Rs.75-80 bn in FY17 in India and has grown with a CAGR of 13-15% over last 3 years.
ICD/ CFS facilities have been rising due to increase in port traffic and containerization
level in India. It is expected that CFS/ ICD market will continue to grow at CAGR of 13-
15% over next few years and estimated to reach ~Rs.155 bn by FY15

Growth drivers

The CFS & ICDs are amongst the most rapidly growing segments of logistics industry in
India. The increasing container traffic at ports needs the support infrastructure which can
accommodate the traffic volumes of the containers. Growth in containerized cargo and
opening up of container rail transport boosted CFSs and ICDs. Containerized cargo traffic
is growing at 15-15% CAGR in India and it has grown dynamically in recent years across

14
all ports with JNPT topping the list. CFS/ ICD are also working at a one stop point for the
shippers for custom clearance, stuffing/ de-stuffing, packaging, inspection, consolidation of
materials, etc.

Government is working on the plan to ease the movement of the containerized cargo at the
port and approvals to move containers to ICD/ CFS or vice versa. Also, government is
focusing towards improvement in road, rail and port infrastructure projects to provide
impetus to the whole logistics industry.

Customers profile and major players

Companies who have container import and export focus use the CFS/ ICD facilities and
mainly concentrated in West and South India and accounts for around 80% of total
concentration. Major hubs in India are Mumbai/ JNPT, NCR, Nagpur, Mundra, Bangalore,
Ahmedabad, Chennai, Vizag, Hyderabad, Ludhiana, Kanpur, Kolkata, etc. There are as
many as 247 listed container terminals in India. Most of these are CFSs located closer to
the port. This demonstrates the dependency on port based facilities as the primary point for
cargo containerization and clearing.

By comparison, the numbers of listed ICDs are fewer than CFS, despite the fact that a large
portion of the cargo traffic is bound for inland locations. ICDs having rail connectivity the
share of private operators is still lagging while the government run Container Corporation
of India (CONCOR) continues to be the largest player operating 48 terminals which handle
EXIM cargo, while 14 others handle domestic traffic only

Challenges

Despite the apparent benefits of CFS/ICDs, several bottlenecks persist. Road is still a
preferred mode of transport even over long distances, and the trend has been on an
upswing. The share of rail transport has regressed from close to 28% of material movement
to MERELY 22%, creating A challenge for ICD operators in offering frequent rail services
and timely transports, as opposed to export material moving directly to a CFS near the port
facility. Although there are myriad factors at play and they vary in form and magnitude for
each ICD location, the two key factors encouraging direct road movement through ports
are transit time and costs. Transit time refers to the frequency of rail services, which, in
turn, is related to traffic/demand. Therefore, cost benefit and ease of doing business over
direct road
15
transport is paramount. Rail haulage may be uncompetitive or may provide little benefit
over roads in many cases, especially where distances are not long or last mile connectivity
is expensive. The single-largest cost component of rail operations from ICD are high
haulage costs, which is paid to the Indian Railways. It is estimated to be worth between
70% and 75% of the total transport cost. Other issues, such as the availability of empty
containers at the ICD location, difference in ocean freight rates by shipping for ICD
acceptance, congested rail corridors and reluctance to movement from established setups
also translate into cost competitiveness and ease of doing business

Outlook

CFSs and ICDs are some of the fastest-growing segments of the Indian logistics industry.
Their growth will gain pace in line with the increasing need to tackle the growing
complexities of maritime intensive supply chain. Growing competition from private
participation will also force players to provide new services and customized logistic
solutions. Recent investments in developing Free Trade Warehousing Zones (FTWZs) by
private players are illustrative of the growth potential and patent need of supporting
infrastructure. However, to sustain high growth in container storage, few challenges need
to be tackled. The modal shift from road to rail will play a key role in facilitating a smooth
flow of cargo from distant hinterlands to the port, decongesting ports and National highway
in a safe and environmentally sensitive manner. The much-awaited development of
dedicated freight corridors on Eastern and Western ports is likely to provide the required
impetus for rail services to be competitive to road transport. As per government estimates,
the development of dedicated freight corridors is expected to increase rail coefficient from
Western ports to 50% from the present levels of 20%. Cooperation among key stakeholders
including various government agencies, ports, shipping lines and private ICD operators
will be a key success factor for enhancing the role of inland container depots, as well as
container freight stations.

According to Lambert et Cooper (2000), supply-chain management entails integrating

key business processes. In this context, warehouses are important hubs in the supply chain
in which they operate. For better understanding of the process of designing a warehouse,
the main factors that impact the decisions are visualized, and a systematic review of the
literature oriented by a framework, based on an initial bibliographic study, is
formulated. The

16
framework formulated was structured in three parts: inputs; design and implementation;
and outputs, as illustrated below

Proposed framework for systematic literature review on warehouse design

Transportation model in Quantitative techniques

The transportation model is represented by a network diagram in Figure

Network Transportation Model

17
where,
m be the number of sources,
n be the number of destinations,
sm be the supply at source m,
dn be the demand at destination n,
cij be the cost of transportation from source i to destination j, and
xij be the number of units to be shipped from source i to destination j.
The objective is to minimize the total transportation cost by determining the unknown xij,
i.e., the number of units to be shipped from the sources and the destinations while
satisfying all the supply and demand requirements.

Transportation problems only deal with the direct distribution of goods and services from
supply to demand points. There are various ways to solve and
formulate transportation problems. Firstly, before formulating a LP it is important to see
that the problem is balanced. i.e The demand and supply are equal. A dummy demand/
dummy supply can be added to ensure that they balance. After this the LP can be
formulated.

Once the LP is set up it is possible to find the optimal solution. The Transportation
Simplex Method is used to solve the LP. Whether calculating the LP by hand or using
Lindo/ Excel Solver the methodology behind coming up with the solution is the same. The
three most popular methods of solving the LP by hand are the (i) North-
Western Method,
(ii) Minimum Cost Method and (iii) Vogel’s Method.
In many cases Lindo is preferred as you have an option to do a thorough sensitivity
analysis, thus giving you a better understanding of the problem as a whole. The important
terminology is explained below:

Reduced Cost:
In linear programming, reduced cost, or opportunity cost, is the amount by which an
objective function coefficient would have to improve (so increase for maximization
problem, decrease for minimization problem) before it would be possible for a
corresponding variable to assume a positive value in the optimal solution.

18
Shadow Price:
In constrained optimization in economics, the shadow price is the change in the objective
value of the optimal solution of an optimization problem obtained by decreasing the
constraint by one unit. In other words, it is the marginal utility of decreasing the constraint,
or, equivalently, the marginal cost of increasing the constraint. In a business application, a
shadow price is the maximum price that management is willing to pay for an extra unit of a
given limited resource.

RESEARCH REVIEW
1. Girish V Upadhye, A study on role of ports, container freight stations and inland
container depot in logistical development, Tactful Management Research Journal,
ISSN: 2319-7943

Logistics management is that part of the supply chain management process that plan,
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 customer’s requirements. With rising consumer demand and
the resulting growth in global trade, the role of infrastructure support in terms of rails,
roads, ports & warehouses hold the key to the success of the economy. Ports have been
natural sites for transshipment in order to transfer goods from one mode of transport to
another. They have historically provided the link between maritime and inland transport,
and the interface between the sea and rivers and roads and railways. At present, ports play
an important role in the management and co-ordination of materials and information flows,
as the transport is an integral part of the entire supply chain. In a wide sense, ports are
complex entities supporting to the procurement of raw materials, the manufacturing and the
distribution of finished goods. They are the potential members of different supply chains.
CFS is a place where containers are stuffed, de-stuffed and aggregation/ segregation of
export/import materials take place. With the growing volume of international trade, the
need for expeditious clearance of goods at the port within the minimum possible time has
been gaining importance. This is more so when the ports are facing congestion at their
premises. A CFS is an extended arm of Port/ ICD/ Air materials Complex, where import/
export goods are kept till completion of their examination and clearance. The present paper
deals with changing logistical infrastructure and role of ports and container freight stations
and ICDs
19
in the logistical development of our country. It brings into light the developments taking
place at ports and a key role of CFS in developing it.

2. A. P. Bahale, Dr.S.S.Deshmukh, 2014, Improving Material Handling Efficiency in a

Ginning Machine Manufacturing Company, International Journal of Innovative
Research in Science, Engineering and Technology, Vol. 3, Issue 3, March 2014, ISSN:
2319-8753

In the last several years material handling has become a new, complex, and rapidly
evolving science. Material handling cannot be avoided in logistics, but can certainly be
reduced to minimum levels. Material handling system (MHS) design has a direct influence
on the logistics cost. Therefore, how to improve the efficiency of material handling system
gets more and more people’s attention. The paper deals with a case study of ginning
machine manufacturing company. The purpose of the work is to locate and identify the
wasteful activities regarding the material handling, and to streamline the activities to reach
a minimum of material handling.

3. Vieira, G. B. B., Pasa, G. S., Borsa, M. B. N. O., Milan, G. S., Pandolfo, A.:
Materials Handling Management: a Case Study Journal of Operations and Supply
Chain Management 4 (2), pp 19 – 30

The highly competitive environment, linked to the globalization phenomena, demands

from companies more agility, better performance and the constant search for cost
reduction. The present study focused on improvements in internal materials handling
management, approaching the case of a large company in the automotive industry.
Materials handling is intrinsically associated with production flow. Because of this, it has
direct influence on transit time, resources usage, and service levels. The objective was to
evaluate, in a systematic way, the impact of implemented changes in materials handling
management on the internal customers’ perceptions of cost, safety in service, service
reliability, agility and overall satisfaction. A literature review preceded a case study in the
company’s manufacturing unit and the questionnaires were completed by 26 employees
directly involved in the process. Analyzing the answers, it was possible to suggest that
internal customers understood that the new materials handling management system
enlarged service agility and reliability and reduced costs, which caused an improvement in
overall satisfaction.

20
4. Amer M. Momani, and Abdulaziz A. Ahmed, Material Handling Equipment
Selection using Hybrid Monte Carlo Simulation and Analytic Hierarchy Process,
World Academy of Science, Engineering and Technology 59 2011

The many feasible alternatives and conflicting objectives make equipment selection in
materials handling a complicated task. This paper presents utilizing Monte Carlo (MC)
simulation combined with the Analytic Hierarchy Process (AHP) to evaluate and select the
most appropriate Material Handling Equipment (MHE). The proposed hybrid model was
built on the base of material handling equation to identify main and sub criteria critical to
MHE selection. The criteria illustrate the properties of the material to be moved,
characteristics of the move, and the means by which the materials will be moved. The use
of MC simulation beside the AHP is very powerful where it allows the decision maker to
represent his/her possible preference judgments as random variables. This will reduce the
uncertainty of single point judgment at conventional AHP and provide more confidence
in the decision problem results. A small business pharmaceutical company is used as an
example to illustrate the development and application of the proposed model

5. Key Factors in Selecting an International Freight Forwarding Company, 2009,

Yael Perlman, Tzvi Raz and Livnat Moshka, The Open Transportation Journal, 2009, 3,
29-34

Due to globalization, the number of companies operating overseas is constantly expanding

along with the organizations offering the capability to deal with the complexities inherent
in international trade. Since international freight forwarders (IFF) are considered the main
logistic mediator in international trade, selecting an IFF is a significant element in a
company's success overseas. This paper examines key considerations among Israeli
business executives when selecting an IFF. The conceptual model that was developed
describes the relationship between the characteristics of the business environment in which
IFF clients operate and the factors affecting the choice of an IFF. Three factors were used
to define the client's business environment - company size, number of destinations, and the
scope of use of IFF services. Two characteristics described respondents - seniority and
training. After a detailed study of the literature and discussion with long-time IFF users, the
authors identified 18 factors in selecting an IFF. These factors were analyzed and then
organized in groups in regard to reliability, IFF business environment, information

21
management, service and prices. The Reliability group was found to be the most important
for IFF clients. It was followed by

22
the Service and Prices group. The group of least importance is Information Management.
Data for this study was collected using a questionnaire administered to some 200
organizations. The return rate was about 25%. The questionnaire's reliability (Cronbach’s)
is 0.829, consistent with the fact that only 6% of the respondents suggested further reasons
for choosing forwarding companies beyond those suggested.

6. Denktas Sakar, G., and Marlow, P. (2009) an Analysis of Freight Forwarders’

Perceptions about Multimodal Transport
Growing international trade, developments in transportation systems, and the mobility of
goods have all created new opportunities for multimodal transport, which involves the use
of more than one mode to form an integrated transport chain. In this case, multimodal
transport has been added to the mode choice decisions/alternatives of decision making
parties. Turkey, being advantageously positioned between Middle East, Balkans, Caucasus
and Europe, serves as a transfer point between these regions. In the developing stage of
multimodal transport in Turkey, it is inevitable that the actors in the supply chain face
increasing alternatives and their mode selection criteria may change according to the
changing transport environment. In this dynamic environment, the importance of the main
factors affecting the decision makers with regards to multimodal transport and their
perceptions towards multimodal transport must be investigated. As one of the main
decision makers in the logistics system, freight forwarders constitute the main sample of
the study. This study, with the use of survey method aims to provide an overall profile of
the freight forwarders located in Turkey by mainly focusing on their multimodal transport
operations. Moreover, the study attempts to identify the perceptions of freight forwarders
about the main characteristics of multimodal transport.

7. Yung-yu Tseng, Michael A P Taylor, Wen Long YUE, 2005, Proceedings of the
Eastern Asia Society for Transportation Studies, Vol. 5, pp. 1657 - 1672, 2005
The operation of transportation determines the efficiency of moving products. The progress
in techniques and management principles improves the moving load, delivery speed,
service quality, operation costs, the usage of facilities and energy saving. Transportation
takes a crucial part in the manipulation of logistic. Reviewing the current condition, a
strong system needs a clear frame of logistics and a proper transport implements and
techniques to link the producing procedures. The objective of the paper is to define the
role of transportation in
23
logistics for the reference of further improvement. The research was undertaken to assist
logistics managers, researchers and transportation planners to define and comprehend the
basic views of logistics and its various applications and the relationships between logistics
and transportation.

8. Abirami & Gayathri, 2016, Role of Container Freight Stations In International

Trade, ISSN - 2250-1991 | IF: 5.215 | IC Value: 77.65, Volume: 5 | Issue: 4 | April 2016
Industrialization, advanced transportation, globalization, multinational corporations and
outsourcing are having a major impact on the international trade system. Increasing
international trade is crucial to the continuance of globalization. Without international
trade, nations would be limited to the goods and services produced within their own
borders. With the growing volume of international trade in India, the need for expeditious
clearance of goods at the port within the minimum possible time has been gaining
importance. Container Freight Stations (CFS) provides better service and helps exporters in
getting clearance for the goods that they export. Hence an attempt is been made to explore
the role of CFS in international trade and how a new CFS can be approved and
implemented in the present scenario.

9. Weldon Korir, 2013, An Analysis on Performance of Container Freight Station in

the Port of Mombasa in Kenya, International Journal of Advanced Research (2013),
Volume 1, Issue 10, 731-738
This study sought to examine the performances of Container Freight Station (CFS) in the
port of Mombasa in Kenya. Although the concept is new in Kenya, there study will find
out and analyze the effects of container freight station in decongesting the port of
Mombasa and how CFS can make the Port of Mombasa become more efficient and
effective as Port of choice for East and Central Africa region. The study used primary and
secondary data analysis on data collected from the existing documents and interviews
conducted within the organization various operational CFS and C& F agents operating
within Mombasa. The finding shows that Mombasa port is currently among the fast
growing ports in the world in terms of container handling trends. These has led to
congestion every now and then for the last ten years. The constraints has been a major
hurdle in port operation as materials imported especially cars and containers which have
surpassed yard holding capacity against a backdrop of poor materials off-take to their final

24
destination.

25
10. Clifford Serete Milimu, 2015, Factors Affecting Containerized materials
Clearance at Kenya Port Authority, The International Journal of Business &
Management (ISSN 2321 –8916)
Delay of containers on container clearance has emerged and evident at the port of
Mombasa which has indicated long clearance period or overstay of received containers at
the port for more than 10- 12 days. The delay in clearing containers at the port is made
worse by infrastructural decay and lack of suitable ship and materials handling equipment,
lack of space capacity for the ships to dock waiting loading and long custom clearance
procedures and requirements. The objective of the study was to assess the factors affecting
containerized materials clearance in the Kenya port with focus on specific objectives, to
establish the effects of documentation process on container clearance at KPA, to determine
the effects of handling equipment on containerized materials clearance at KPA, to find out
the effects of transport infrastructure on containerized materials clearance at KPA and to
assess the effects of space capacity on containerized materials clearance at KPA. This study
adopted a descriptive research with survey of a total population of 200 and applied a
stratified random sampling technique to select a sample size of 50 respondents. The study
used questionnaires, interviews, observation techniques and reviews, in order to bring out
the results of the study as expected. Respondents were drawn from the departments within
Kenya Port Authority. The study analyzed the data using Statistical Package for Social
Sciences (SPSS). The findings of the study were presented using tables and discussions.

26
 RESEARCH GAP
Equipment breakdown/ non availability: this is a common issue in many of the ports but
here it becomes a problem because of the poor preventive and breakdown maintenance
practices and limited equipment availability. For example, only one crane is available for a
ship at a time.
 Power failure
 Weather constraints: for break bulk and dry bulk materials the turnaround time
increases during monsoon. Wheat and Salt imports increased mainly during
monsoon season which causes increase in Turn Around Time (TRT)
 Season Contract workers who lack expertise in materials handling
 Frequent labour strikes
 Shifts in gang – The labour gang working on a particular shift stop their work when
the shift is over and does not wait for the next labour gang to take up the remaining
work. This results in an idle time of 30 minutes to 1 hour between the gang shifts
which results in reduced productivity.

Fishbone Diagram Showing Cause of Effect of Materials Handling Process

27
 CHAPTER 3
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research is undertaken within most professions. More than a set of skills, it is a way of
accepted wisdom: examining significantly the various aspects of your professional work. It
is a habit of inquiring what you do, and a logical assessment of the observed information to
find answers with a view to instituting appropriate changes for a more effective
professional service. Research methodology is a approach to analytically solve the research
problem. It may be implicit as a part of studying how research is done scientifically. In the
study, the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them It is necessary to know only the research
methods/techniques but also methodology. They should also know to develop certain
indices or tests. It is necessary to understand the assumptions underlying various
techniques and to know the criteria by which they can decide techniques and procedures.

I have chosen Qualitative method of research for this study. This method developed
collecting and analyzing unstructured information using manual methods

STATEMENT OF THE PROBLEM

Airex India is vulnerable to the pitfalls like materials handling, operational problems,
strategic and design related problems etc. By delineating these pitfalls, more managers
might avoid them. The company should make use of the abundant opportunities that are
open to them. This report speaks about the existing shortfalls in materials handling and the
ways of eradicating it.

NEED FOR THE STUDY

The purpose of an effective material handling is to have complete coordination of the flow
of material and information from suppliers to the end users. The material handling should
be able to seamlessly connect supply, planning manufacturing and distribution operations
and provide visibility across the supply network, thereby enabling rapid decision making
and optimal execution. Material handling management is the process of improving the flow
of material, information and money through the entire supply chain from the supplier to the
final customer. It is an important concept of recent retail warehouses.

28
 SCOPE OF THE STUDY
The study gives an insight into the material management procedure prevailing in Airex
India. It will help the company to know about the various levels of materials that the
company has to concentrate on sorting, arranging etc. The study can also be further
compared with the industry behavior of other warehouses and benchmark company in
terms of their cost ascertainment, cost accounting procedure and their cost control
methods.

OBJECTIVES OF THE STUDY

Primary Objective
To study the effectiveness of warehouse operations in efficiently handling materials at
Airex India
Secondary Objectives
 To understand the present method of material handling adopted in the warehouses
of Airex India
 To study the training on materials management given to employees of Airex
India Warehouses
 To study the level of awareness about materials management among employees
 To study the implementation of materials management in the warehouses of
Airex India
 To study the materials management stages of implementation

RESEARCH DESIGN
The research design held by the researcher is expressive. This research is anxious with a
group of individuals in a work situation. The research design is merely and simply the
outline of plan for a study that facilitates the collection and examination of data.
Descriptive research design was used for this research. The technique used to collect the
data from the target group of Airex India is “Convenient Sampling”. The size of the sample
selected is 120

SAMPLE DESIGN
Sample Method
Descriptive study is engaged with the representation of characteristics of a group or
situation. The main descriptive study is to attain the knowledge. The present project deals
29
with the descriptive study. Formulating the objects, designing methods, selecting the
samples,

30
collecting, processing and analyzing the data and report the findings. In this method a
desire number of sample unit is selected deliberately or purposefully depending on the
object of the enquiry, so that only the important items representing the true
characteristics of the population are included in the sample. In this research paper
random-cum-convenient sampling technique is used. Convenient Sampling method is used
for Data Collection Sampling Size
The sample size is 120 employees. It includes low, middle and high level of employees.

METHOD OF DATA COLLECTION

The type of data collected comprises of primary data and secondary data.
Primary Data
Primary data is the first hand information gathered from the employees of Airex India. The
survey conducted from the respondents by Telephonic and in-person survey and mailing
methods (focused and Structured Interview), since the respondents were from various parts
of the state and also direct contact with the higher officials in the companies is difficult.
The data obtained through the evaluation of these questionnaires is required to calculate
market potential such basic component requirements in a particular period of time. These
interviews were focused and structured Interview.
Secondary Data
Secondary data for the study has been get from the sales report and official publication of
the organization, which would bring the prevailing status of the operations of the company.
The secondary data includes the internet references etc.
Research Instrument
The method used for data collection was “Questionnaire method” that is structured one.
It is a mixture open- ended and closed ended and multiple choices. The words used were
simple and helps in avoiding confusion and misinterpretation among the respondents
Open end Question
The questions asked to the respondents will not result in the bringing of some
specific answers or to set of answers. The answer here is not subjective by the
question itself. Multiple choice Questions
The respondent could select any one option given under the questions of their choice.

31
 TOOLS FOR ANALYSIS
Under probability clustered sampling, the statistical tools applied are,
 Percentage method
 Chi-square method
 Weighted average method

Percentage Method
Percentage refers to special kind of ratio that is used in making comparison between two or
more series of data. Percentage can also be used to compare between two or more series of
data. Percentage can also be used to compare the relative item that is distribution of two or
more series of data. This method is mainly used as comparative study. Percentages are a
measure of central tendency percentages are often used in data presentation. The data are
reduced into the standard form with the base equal to 100, which in fact facilitates relative
comparison.

Percentage= (no of respondents for the particular factor/ total respondents)* 100

Chi-Square Method

The Ψ² test (chi-square test) is one of the simplest and most widely used non-parametric
tests in statistical work.

The formula used to find out the chi-square test is,

∑(O-E) ²

χ² test = -----------

Where O stands for observed frequency,

E stands for expected frequency.

32
In general the expected frequency for any cell is calculated from the following equation

RT*CT

C=

Where
RT the row total for the row containing the cell
CT the column total for the column containing the
cell N the number of observation
D.F Degree of freedom = (r-1)(c-1)
r - Number of rows
c - Number of columns

The quantity of χ² describes the magnitude of discrepancy between theory and observation.
The calculated value of χ² is compared with tabulated of χ² for given degrees of freedom at
a certain specified level (5% level). If the calculated value of χ ² is more than the tabulated
value of χ², then the null hypothesis is rejected. On the other hand if calculated χ ² is less
than tabulated value of χ ², the null hypothesis is accepted.

33
 LIMITATIONS OF THE STUDY

Every scientific study has certain limitations and the present study is no more
exception. These are: -

 Interviewing of the executive of top echelon position is busy in the Organization

State of affair. So it is not possible to contact through mail all of those every busy
executives.
 The terminology used in the subject is highly technical in nature and creates a lot of
ambiguity.
 Confidentiality of the management is the strongest hindrance to the collection of
data and scientific analysis of the study.
 Respondents were found hesitant in revealing opinion.

CHAPTER SCHEME

The research is divided into five chapters. The first part would cover the introduction,
about the industry profile and company profile. The second part covers the literature
related to the study. Third chapter speaks about research methodology including problem
statement, objectives, scope and need for the study. This covers the research, data and
sampling design, framing research questions, and data analysis tools are discussed in detail.
Fourth chapter is the data analysis and interpretation part wherein descriptive and
inferential analysis is discussed in detail. Chapter five is the results and discussion chapter
which covers the study findings, implications to the management and conclusions are
arrived.

34
 CHAPTER 4

DATA ALAYSIS & INTERPREATION

PERCENTAGE ANALYSIS
TABLE 1
TABLE SHOWING THE POSITION CATEGORY
Options No Of Respondents Percentage

Managerial Level 28 23%

Middle Level 54 45%

Lower Level 38 32%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 1
CHART SHOWING THE POSITION CATEGORY

50% 45%

40%
32%
30%
23%
20%

10%

0%
Managerial Level Middle Level Lower Level

Inference:

23% of the respondents are from Managerial level, 45% are from Middle level and the
32% are from Lower Level of management

35
 TABLE 2

TABLE SHOWING THE METHODS USED TO MANAGE MATERIALS

Options No Of Respondents Percentage

Close partnership with suppliers 49 41%

JIT supply 16 13%

EDI (Electronic Data Interchange 19 16%

E-Procurement 27 22%

Others 9 8%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 2

CHART SHOWING THE METHODS USED TO MANAGE MATERIALS

50% 41%
40%
30% 22%
20% 13% 16%
8%
10%
0%

Inference:

41% of the respondents said they manage their materials through close partnership with
suppliers, 22% said E-procurement, 13% said through JIT supply, 16% said it by EDI
and the 8% through other methods

36
 TABLE 3

TABLE SHOWING THE EFFECTIVE MODERN METHODS USED IN

WAREHOUSES

Options No Of Respondents Percentage

Stock Keeping Unit Storage 56 47%

Job lot storage 26 22%

Cross docking 17 14%

Others 21 17%

Total 120 100%

SOURCE : PRIMARY DATA

. CHART 3

CHART SHOWING EFFECTIVE MODERN METHODS USED IN

WAREHOUSES

50% 47%
45%
40%
35%
30%
25% 22%
20% 17%
14%
15%
10%
5%
0%
Stock Job lot Cross docking Others
Keeping Unit storage
Storage

Inference:

47% responders say Stock keeping unit is the effective modern method used in
warehouses, 22% say job lot storage is effective modern method, 14% opted for cross
docking and the 17% chose others

37
 TABLE 4

TABLE SHOWING THE SYSTEM CURRENTLY USED IN WAREHOUSES TO

SUPPORT

Options No Of Respondents Percentage

Material Requirements Planning 25 21%

Manufacturing Resources Planning 38 32%

Enterprise Resource Planning 32 26%

Advanced Planning System 7 6%

Bar coding 18 15%

Others 0 0%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 4

CHART SHOWING THE SYSTEM CURRENTLY USED IN WAREHOUSES TO

SUPPORT MATERIALS HANDLING PROCESS

35% 32%
30% 26%
25% 21%
20% 15%
15%
10% 6%
5% 0%
0%

Inference:

21% use the Enterprise resource planning to is the current system used in warehouse
support supply chain management, 32% use MRPII, 26% use the Materials Requirements
Planning, 6% handle using barcode, 15% use Advanced Planning System and the 3% use
others.

38
 TABLE 5

TABLE SHOWING USE OF AUTOMATED HANDING MACHINE AND

EQUIPMENT POSITIVELY MATERIALS HANDLING PROCESS

Options No Of Respondents Percentage

Strongly agree 42 35%

Agree 17 14%

Neutral 32 27%

Disagree 24 20%

Strongly disagree 5 4%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 5

CHART SHOWING USE OF AUTOMATED HANDING MACHINE AND

EQUIPMENT POSITIVELY HELPS CONTAINER CLEARANCE

40% 35%
35%
30% 27%
25% 20%
20%
14%
15%
10%
4%
5%
0%
Strongly Agree Neutral Disagree Strongly
agree disagree

Inference:

35% of the respondents strongly agree that use of automated handing machine and
equipment positively helps container clearance, 14% of them agree with this, 27% of them
are neutral towards this, 20% of them disagree this and the rest 4% of them strongly
disagree this.

39
 TABLE 6

TABLE SHOWING LOADING AND UNLOADING

Options No Of Respondents Percentage

Daily 33 28%

Monthly 59 49%

Weekly 22 18%

Fortnightly 6 5%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 6

CHART SHOWING THE LOADING AND UNLOADING

60%
49%
50%

40%

30% 28%

20% 18%

10% 5%

0%
Daily Monthly Weekly Fortnightly

Inference:

28% of the respondents said to load and unload materials daily, 49% of them said monthly,
18% said weekly and the rest 5% said fortnightly

40
 TABLE 7

TABLE SHOWING GOODS STORED IN WAREHOUSE ARE SORTED

ACCORDING TO COMPANY NEEDS

Options No Of Respondents Percentage

Strongly agree 29 24%

Agree 30 25%

Neutral 32 27%

Disagree 24 20%

Strongly disagree 5 4%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 7

CHART SHOWING GOODS STORED IN WAREHOUSE ARE SORTED

ACCORDING TO COMPANY NEEDS

30% 27%
24% 25%
25%
20%
20%
15%
10%
4%
5%
0%
Strongly Agree Neutral Disagree Strongly
agree disagree

Inference:

24% of the respondents strongly agree that the goods stored in warehouse are sorted
according to company needs, 25% of them agree with this, 27 % of them are neutral
towards this, 20% of them disagree this and the rest 4% of them strongly disagree this.

41
 TABLE 8

TABLE SHOWING TRANSSHIPMENT OF MATERIAL TAKES PLACE FROM

AIREX INDIA

Options No Of Respondents Percentage

Yes 68 57%

No 52 43%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 8

CHART SHOWING TRANSSHIPMENT OF CARGO TAKES PLACE FROM

AIREX INDIA

60% 57%

50%
43%
40%

30%

20%

10%

0%
Yes No

Inference:

57% of the respondents said the transshipment of cargo takes place from Airex India and
rest 43% said no.

42
 TABLE 9

TABLE SHOWING POLICIES OF AIREX INDIA HELPED TO IMPROVE ON

THE EFFICIENCY AND EFFECTIVENESS OF THE DELIVERIES MADE

Options No Of Respondents Percentage

Strongly Agree 29 24%

Agree 22 18%

Neutral 8 7%

Disagree 24 20%

Strongly Disagree 37 31%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 9

CHART SHOWING POLICIES OF AIREX INDIA HELPED TO IMPROVE ON

THE EFFICIENCY AND EFFECTIVENESS OF THE DELIVERIES MADE

40%
31%
30% 24%
18% 20%
20%
10% 7%

0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference:

24% of the respondents strongly agree that the policies of Airex India helped to improve on
the efficiency and effectiveness of the deliveries made, 18% of them agree with this, 7% of
them are neutral towards this, 20% of them disagree this and the rest 31% of them strongly
disagree this.

43
 TABLE 10

TABLE SHOWING COMPANY HAVE A CLEAR LOGISTIC STRATEGIC PLAN

Options No Of Respondents Percentage

Yes 78 65%

No 42 35%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 10

CHART SHOWING COMPANY HAVE A CLEAR LOGISTIC STRATEGIC PLAN

70% 65%

60%

50%

40% 35%

30%

20%

10%

0%
Yes No

Inference:

65% of the respondents said the company has a clear logistic strategic plan and 37% said
no.

44
 TABLE 11

TABLE SHOWING AIREX INDIA HAS INSUFFICIENT HANDLING

EQUIPMENT AND MACHINE THAT CONTRIBUTE TO DELAY OF
CLEARING CONTAINERS

Options No Of Respondents Percentage

Strongly Agree 38 32%

Agree 21 18%

Neutral 18 15%

Disagree 29 24%

Strongly Disagree 14 11%

Total 120 100%

SOURCE : PRIMARY DATA

CHART 11

CHART SHOWING AIREX INDIA HAS INSUFFICIENT HANDLING

EQUIPMENT AND MACHINE THAT CONTRIBUTE TO DELAY OF
CLEARING CONTAINERS

40%
32%
30% 24%
18%
20% 15%
11%
10%
0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree

Inference: 32% of the respondents strongly agree that Airex India has insufficient
handling equipment and machine that contribute to delay of clearing containers, 18% of
them agree with this, 25% of them are neutral towards this, 24% of them disagree this
and the rest 11% of them strongly disagree this.

45
 CHI – SQUARE TEST

H0 (Null hypothesis) : There is no significant difference between level of management and

their opinion about policies of Airex India helped to improve on the efficiency and
effectiveness of the deliveries made.

H1 (Alternate hypothesis) : There is a significant difference between level of

management and their opinion about policies of Airex India helped to improve on the
efficiency and effectiveness of the deliveries made.

TABLE 12

(i) Policies * Position Cross tabulation

Count
Position
Managerial Middle Lower
Level Level Level Total
Policies Strongly Agree 7 13 10 30
Agree 8 9 5 22
Neutral 3 3 3 9
Disagree 7 7 6 20
Strongly
3 22 14 39
Disagree
Total 28 54 38 120

(ii) Chi-Square Test output

Asymp.
Value df Sig. (2-
sided)
Pearson Chi-Square 10.015a 8 .264
Likelihood Ratio 11.064 8 .198
Linear-by-Linear
1.606 1 .205
Association
N of Valid Cases 120
a. 4 cells (26.7%) have expected count less than 5. The
minimum expected count is 2.10.
46
Degree of freedom = (R-1) (C-1)

= (5-1) (3-1)

= 8

Level of significance is 0.05

0.264 > 0.05

If the value is greater than 0.05,then null hypothesis is accepted

H0 is accepted.

Inference:

Hence there is no significant difference between level of management and their opinion
about policies of Airex India helped to improve on the efficiency and effectiveness of the
deliveries made.

47
 WEIGHTED AVERAGE

1) USE OF AUTOMATED HANDING MACHINE AND

EQUIPMENT POSITIVELY HELPS CONTAINER CLEARANCE

TABLE 13 (i)

SA A N DA SDA Aggregate WA

42 17 32 24 5 427 3.56

SCALE REPRESENTATION:-

STRONGLY AGREE → 5

AGREE →4

NEUTRAL →3

DISAGREE →

2 STRONGLY DISAGREE →

═ (42*5) + (17*4) + (32*3) + (24*2) + (5*1) / 120

═ 210 + 68 + 96 + 48 + 5 / 120

═ 427 / 120

═ 3.56

Inference:-

From the above table it is clear that weighted average is 3.56 and the value of the weighted
average is in between 4. Most of the respondents agree that use of automated handing
machine and equipment positively helps container clearance.

48
2) DO YOU AGREE THE POLICIES OF AIREX INDIA HELPED TO
IMPROVE ON THE EFFICIENCY AND EFFECTIVENESS OF THE
DELIVERIES MADE
TABLE 13(ii)

SA A N DA SDA Aggregate WA

29 22 8 24 37 342 2.85

SCALE REPRESENTATION:-

STRONGLY AGREE → 5

AGREE →4

NEUTRAL →3

DISAGREE →

2 STRONGLY DISAGREE →

═ (29*5) + (22*4) + (8*3) + (24*2) + (37*1) / 120

═ 145 + 88 + 24 + 48 + 37 / 120

═ 342 / 120

═ 2.85

Inference:-

From the above table it is clear that weighted average is 2.85 and the value of the weighted
average is in between 3.Most of the respondents made neutral response for the policies of
Airex India helped to improve on the efficiency and effectiveness of the deliveries made.

49
3) THE GOODS STORED IN WAREHOUSE ARE SORTED
ACCORDING TO COMPANY NEEDS

TABLE 13(iii)

SA A N DA SDA Aggregate WA

29 30 32 24 5 414 3.45

SCALE REPRESENTATION:-

STRONGLY AGREE → 5

AGREE →4

NEUTRAL →3

DISAGREE →

2 STRONGLY DISAGREE →

═ (29*5) + (30*4) + (32*3) + (24*2) + (5*1) / 120

═ 145 + 120 + 96 + 48 + 5 / 120

═ 342 / 120

═ 3.45

Inference:-

From the above table it is clear that weighted average is 3.45 and the value of the weighted
average is in between 3 . Most of the respondents made neutral response for the goods
stored in warehouse are sorted according to company needs.

50
 CHAPTER 5
FINDINGS, SUGGESTIONS&CONCLUSION

FINDINGS OF THE STUDY

 23% of the respondents are from Managerial level, 45% are from Middle level and
the 32% are from Lower Level of management
 41% of the respondents said they manage their materials through close partnership
with suppliers, 22% said E-procurement, 13% said through JIT supply, 16% said it
by EDI and the 8% through other methods
 47% responders say Stock keeping unit is the effective modern method used in
warehouses, 22% say job lot storage is effective modern method, 14% opted for
cross docking and the 17% chose others.
 21% use the Enterprise resource planning to is the current system used in
warehouse support supply chain management, 32% use MRPII, 26% use the
Materials Requirements Planning, 6% handle using barcode, 15% use Advanced
Planning System and the 3% use others.
 35% of the respondents strongly agree that use of automated handing machine and
equipment positively helps container clearance, 14% of them agree with this, 27%
of them are neutral towards this, 20% of them disagree this and the rest 4% of them
strongly disagree this.
 28% of the respondents said to load and unload materials daily, 49% of them said
monthly, 18% said weekly and the rest 5% said fortnightly
 24% of the respondents strongly agree that the goods stored in warehouse are sorted
according to company needs, 25% of them agree with this, 27 % of them are neutral
towards this, 20% of them disagree this and the rest 4% of them strongly disagree
this.
 57% of the respondents said the transhipment of cargo takes place from Airex India
and rest 43% said no.
 24% of the respondents strongly agree that the policies of Airex India helped to
improve on the efficiency and effectiveness of the deliveries made, 18% of them
agree with this, 7% of them are neutral towards this, 20% of them disagree this and
the rest 31% of them strongly disagree this.

51
 65% of the respondents said the company has a clear logistic strategic plan and
37% said no.
 32% of the respondents strongly agree that Airex India has insufficient handling
equipment and machine that contribute to delay of clearing containers, 18% of them
agree with this, 25% of them are neutral towards this, 24% of them disagree this
and the rest 11% of them strongly disagree this.
 There is no significant difference between level of management and their opinion
about policies of Airex India helped to improve on the efficiency and effectiveness
of the deliveries made.
 From the weighted average method most of the respondents agree that use of
automated handing machine and equipment positively helps container clearance.
 From the weighted average method, Most of the respondents made neutral response
for the policies of Airex India helped to improve on the efficiency and effectiveness
of the deliveries made.
 From the weighted average method, Most of the respondents made neutral response
for the goods stored in warehouse are sorted according to company needs.

52
SUGGESTIONS
 Modification of shelves within the facility can be prioritized in freight station.
 Highlight the minor inefficiency causes that occur at the moment. By studying the
routines and the inefficiency patterns the company can focus on synchronizing the
routines so that no unnecessary material handling is occurring. By highlighting the
minor inefficiency causes and making slight modifications Airex India can save
time and resources that could be used for other purposes
 Can change the material handling equipment’s at warehouses. Provide the material
handling staff with a modern material handling equipment such as advance forklift
truck.
 One of the alternatives is to modify the entire facility layout at warehouses
 Improve the communication between the service staff by providing sufficient
communications equipment, for example some intercom system in the shape of
headset so that it can work in loud environments and doesn’t requires the use of
hands to operate.

53
 CONCLUSION
Container Freight Stations are located near the serving ports, which helps in decongesting
the port by shifting cargo and customs related activities outside the port area. The
operations of CFS (rail siding, container yard, warehousing and gate complex) helps the
exporters in clearance of goods, stuffing and de-stuffing which in turn promotes exports
from the nation. The performance can be improved by way of giving more powers and
proper regulation by the government.

Due to constant complaints because of failures in service and also low speed in material
transport, Airex India was motivated to innovate and/or improve internal processes that
could increase the efficiency of services to manufacturing. The basis of the implanted
system was the concept of stock on wheels, practicing materials transport with the aid of a
tug internally named “train”. The tug pulls the wagons with more load than forklifts
(previous system), maximizing travels and loads through a specific route. It is important to
highlight that there were no losses of jobs although some employees were reallocated. One
operator from the central warehouse was transferred to vehicle driving and his previous job
was divided between two other people from the same department. Regarding inventories,
there was a reduction in work-in-process; however, there were no changes in raw material
and finished goods stocks because the purchasing policy and customer delivery time were
not modified

All the above facts brought into light in this paper will give a clear idea how the role of
ports, CFS is important in the logistical development not only in Airex India but all over
the industry. In near future, there is a huge scope for logistical development since the
process of globalization of trade is in progress. In case of India, there is more scope for
developing new ports as present ports are congesting and the economy is developing with
fast rate resulting into growth of foreign trade.

54
 BIBLIOGRAPHY

1. Sander, L., Matthias, H., and Geoff, W. (2010) The impact of decentralized control
on firm-level inventory Evidence from the automotive industry, International
Journal of Physical Distribution & Logistics Management 41 (5) 435-456 Accessed
at www.emeraldinsight.com/0960-0035.htm
2. Aggarwal, S. C. and D. G. Dhavale. 1975. A simulation analysis of a multiproduct
multiechelon inventory-distribution system. The Academy of Management
Journal 18(1): 41-54. (JSTOR link).
3. Anderson, S. W. and H. C. Dekker. 2009. Strategic cost management in supply
chains, Part 2: Executional cost management. Accounting Horizons (September):
289-305.
4. Carter, J. R. and B. G. Ferrin. 1996. The impact of transportation costs on supply
chain management. Journal of Business Logistics (16): 207.
5. Croson, R. and K. Donohue. 2006. Behavioral causes of the bullwhip effect and the
observed value of inventory information. Management Science (March): 323-336.
(JSTOR link). (The bullwhip effect - The tendency of orders to increase in
variability as one moves up a supply chain).
6. Gourdin, K. 2000. Global Logistics Management: A Competitive Advantage for the
New Millennium. Blackwell Publishing.
7. Braithwaite, A. ‘Achieving World Class Supply Chain and Logistics in the retail
Industry’ presentation to the EPCA Logistics meeting, Nov. 2006
8. Chopra S. & Meindl P., Supply Chain Management – Strategy, Planning
and Operation, Third Edition, 2006

9. www.wikipedia.com
10. www.google.com
11. www.msn.com
12. www.answer.com

55
 ANNEXURE
A STUDY ON MATERIAL HANDLING PROCESS AT AIREX INDIA
QUESTIONNAIRE

1. Name :
2. E-Mail :
3. Age :
4. Experience :
5. Position Category

 Managerial level
 Middle level
 Lower level

Process of Valuing

6. Which of the following methods are you using to manage your materials?
 Close partnership with suppliers
 JIT supply
 EDI (Electronic Data Interchange)
 E-Procurement
 Others

7. Which of the effective modern method adopted in warehouses?

 Stock Keeping Unit (SKU) Storage

 Job lot storage
 Cross docking
 Others

8. What type of system is currently used in the warehouses to support

materials handling?
 Material Requirements Planning (MRP)
 Manufacturing Resources Planning (MRPII)
 Enterprise Resource Planning (ERP)
 Advanced Planning System (APS)
 Bar coding

56
9. Use of automated handing machine and equipment positively helps
container clearance?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

Challenges of Materials Handling

10. How often do you go for loading and unloading goods in warehouse?
 Daily
 Monthly
 Weekly
 Fortnightly
11. The goods stored in warehouse are sorted according to company needs?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
12. Is Transshipment of cargo takes place from Airex India?

 Yes
 No

13. Do you agree the policies of Airex India helped to improve on the efficiency
and effectiveness of the deliveries made?

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
14. Does your company have a clear logistic strategic plan?
 Yes
 No

57
15. Airex India has insufficient handling equipment and machine that contribute
to delay of clearing containers?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

58