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    St. Gonsalo Garcia College

    Subject:logistics management

    Presentation on:

    Role Of Information Technology

    In Supply Chain Management &Food Corporation Of India

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    Table of Contents

    SR.NO TOPICS PAGE.NO

    01 Introduction of SCM 05

    02 Role of I.T. in SCM 08

    03 Bar-coding 10

    04 Conclusion 14

    05 Introduction of FCI 16

    06Procurement, Warehousing,

    Distribution17

    07 Practical Analysis 19

    08 Conclusion 21

    09 Bibliography 22

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    Role of

    informationtechnology in

    supply chainmanagement

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    IntroductionSupply chain management (SCM) is the oversight of materials, information, and finances asthey move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

    Supply chain management involves coordinating and integrating these flows both within andamong companies. It is said that the ultimate goal of any effective supply chainmanagement system is to reduce inventory (with the assumption that products are availablewhen needed). As a solution for successful supply chain management, sophisticated softwaresystems with Web interfaces are competing with Web-based application service providers(ASP) who promise to provide part or all of the SCM service for companies who rent theirservice.

    Supply chain management flows can be divided into three main flows:

    The product flow The information flow

    The finances flow

    The product flow includes the movement of goods from a supplier to a customer, as well asany customer returns or service needs. The information flow involves transmitting ordersand updating the status of delivery. The financial flow consists of credit terms, paymentschedules, and consignment and title ownership arrangements.

    Effective supply chain management solves many of the problems encountered by businesses

    today. First, the vendors involved in the chain will actually have a clearer idea of what the

    buyer needs and can then adequately provide for these needs. Slow response times and

    delays in project start dates also become less frequent because the automated supply chain

    helps shave the time off of the order placement and fulfillment process. Furthermore,Internet-enabled supply chains generally result in lower costs for all parties involved because

    when secure relationships are established and when the supply and demand for products is

    in alignment, the total prices paid by organizations are generally much lower.

    OBJECTIVES OF SCM:

    Enhancing Customer Service

    Expanding Sales Revenue

    Reducing Inventory Cost

    Improving On-Time Delivery

    Reducing Order to Delivery Cycle Time

    Reducing Lead Time

    Reducing Transportation Cost

    Reducing Warehouse Cost

    Reducing / Rationalize Supplier Base

    Expanding Width / Depth of Distribution

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    VALUE-ADDED FUNCTIONS OF LOGISTICS

    Efficient logistics contributes to added-value in four major interrelated ways:

    Production. Derived from the improved efficiency of manufacturing with appropriate

    shipment size, packaging and inventory levels. Thus, logistics contributes to the reduction of

    production costs by streamlining the supply chain. Location. Derived from taking better advantage of various locations, implying

    expanded markets and lower distribution costs.

    Time. Derived from having goods and services available when required along the

    supply chain with better inventory and transportation management, and the strategic

    location of goods and services.

    Control. Derived from controlling most, if not all, the stages along the supply chain,

    from production to distribution. This enables better marketing and demand response, thus

    anticipating flows and allocating distribution resources accordingly.

    ACTIVITIES OF SUPPLY CHAIN MANAGEMENT:STRATEGIC ACTIVITIES :

    Strategic network optimization, including the number, location, and size of

    warehouses, distribution centers and facilities.

    Strategic partnership with suppliers, distributors, and customers, creating

    communication channels for critical information and operational improvements such as cross

    docking, direct shipping, and third-party logistics.

    Product design coordination, so that new and existing products can be optimally

    integrated into the supply chain, load management

    Information Technology infrastructure, to support supply chain operations.

    Where to make and what to make or buy decisions

    Align overall organizational strategy with supply strategy

    TACTICAL ACTIVITIES:

    Sourcing contracts and other purchasing decisions.

    Production decisions, including contracting, locations, scheduling, and planning

    process definition.

    Inventory decisions, including quantity, location, and quality of inventory.

    Transportation strategy, including frequency, routes, and contracting.

    Benchmarking of all operations against competitors and implementation of best

    practices throughout the enterprise.

    Milestone payments

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    OPERATIONAL ACTIVITIES :

    Daily production and distribution planning, including all nodes in the supply chain.

    Production scheduling for each manufacturing facility in the supply chain (minute by

    minute)

    Demand planning and forecasting, coordinating the demand forecast of all customers

    and sharing the forecast with all suppliers.

    Sourcing planning, including current inventory and forecast demand, in collaboration

    with all suppliers.

    Inbound operations, including transportation from suppliers and receiving inventory.

    Production operations, including the consumption of materials and flow of finished

    goods.

    Outbound operations, including all fulfillment activities and transportation to

    customers.

    Order promising, accounting for all constraints in the supply chain, including all

    suppliers, manufacturing facilities. distribution centers, and other customers.

    Performance tracking of all activities.

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    Information and Technology:

    Application in SCM

    In the development and maintenance of Supply chain's information systems both softwareand hardware must be addressed. Hardware includes computer's input/output devices and

    storage media. Software includes the entire system and application programme used for

    processing transactions management control, decision-making and strategic planning.

    ELECTRONIC COMMERCE:

    It is the term used to describe the wide range of tools and techniques utilized to conductbusiness in a paperless environment. Electronic commerce therefore includes electronic datainterchange, e-mail, electronic fund transfers, electronic publishing, image processing,electronic bulletin boards, shared databases and magnetic/optical data capture. Companiesare able to automate the process of moving documents electronically between suppliers and

    customers.

    ELECTRONIC DATA INTERCHANGE:

    Electronic Data Interchange (EDI) refers to computer-to-computer exchange of business

    documents in a standard format. EDI describe both the capability and practice of

    communicating information between two organizations electronically instead of traditional

    form of mail, courier, & fax. The benefits of EDI are:

    1. Quick process to information.2. Better customer service.

    3. Reduced paper work.

    4. Increased productivity.

    5. Improved tracing and expediting.

    6. Cost efficiency.

    7. Competitive advantage.

    8. Improved billing.

    Though the use of EDI supply chain partners can overcome the distortions and exaggeration

    in supply and demand information by improving technologies to facilitate real time sharing of

    actual demand and supply information.

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    ENTERPRISE RESOURCE PLANNING (ERP) TOOLS:

    Many companies now view ERP system (eg. Baan, SAP, People soft, etc.) as the core of their

    IT infrastructure. ERP system have become enterprise wide transaction processing tools

    which capture the data and reduce the manual activities and task associated with processing

    financial, inventory and customer order information. ERP system achieve a high level of

    integration by utilizing a single data model, developing a common understanding of what the

    shared data represents and establishing a set of rules for accessing data.

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    Bar-codingMany companies are using the bar-coding system to effectively track their inventories and

    assets while some of them have an efficient checkout system. A barcode system in place can

    make things easier for you as a business owner. This is why its always recommended that

    you invest in a system to make your operations more effective and efficient. If you have

    warehouses or offices in different parts of the globe, you dont have to wait for someone to

    manually enter the information about your inventory. You can also track your assets more

    efficiently. Youll know if something is missing or if you need to buy something. With the

    software, you can label everything from your products to your inventories.

    Barcode systems ushered in a modern way of doing inventory and asset management.Theyre not just for checkout counters at supermarkets. If youre looking for efficiency andeffectiveness in the operations of your business, you can use it. A system generally consists

    of two things hardware and software. In order for it to be effective, you have to make surethat the components will complement well with one another.

    HARDWARE

    Hardware will generally consist of three things. The first one is your computer. This is whereyoure going to operate the software needed for the whole operation. If you have a bigoperation, a network of computers is better. That way, you can track your inventory at yourwarehouse at a different location. The next thing that youll need is the barcode scanner.Without it, your barcodes will just be labels that you cannot read. The scanner captures thedata and feeds it to the computer. The third hardware that you need is a printer. Youregoing to need it in order to print barcodes and labels.

    SOFTWARE

    Barcode systems wont work efficiently without software. Good software will let you designyour labels and barcodes. There are also programs for asset and inventory management.Software is very important because it provides your hardware the things that they need inorder to function properly.

    HOW DOES A BARCODE WORK?

    Barcodes are just a different way of labeling products. Rather than use a pricing sticker,

    most businesses now use barcodes on their items. This allows for quicker checkouts as

    usually all the cashier has to do is run an items UPC label over a scanner. Sometimes,

    because the label is torn, faded, or wrinkled, the label cannot be read and the cashier has to

    manually type the UPC number into the register. Once it is run across the scanner, the

    scanner picks up the barcode. This is done by it reading the bars and spaces between the

    bars. The numbers at the bottom of a UPC label are for humans only. As the scanner picks

    up the bars, it then transfers the information to a computer (or register). The computer

    then finds the record associated with that barcode. The computer records may contain such

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    information as price, number of items available, and other pertinent information like that. It

    helps keep the pricing more accurate than humans simply keying in a price would. By

    scanning, the margin of error is much less. It also helps a company know exactly how much

    of an item they have in stock or when they run out of an item, so it helps them keep up with

    their inventory.

    HOW DOES BARCODING HELP IN INVENTORYMANAGEMENT?

    Supply chain management is a challenge shared by all businesses, no matter what the

    industry. Keeping track of products throughout the entire distribution process is essential to

    controlling costs, managing inventory and ensuring the quick and reliable delivery of goods.

    Businesses with sound logistical processes ultimately benefit in the form of an improved

    bottom line and more satisfied customers. Businesses who fail to manage their supply chain

    effectively, however, often fail as a whole.

    Barcoding is one of the most efficient ways to manage products as they move alongthe supply chain, as they can store serial numbers, lot numbers, handling information and

    almost any other information you require as your product moves through the channel.

    Relying on manual tracking is unreliable and results in higher error in product tracking,

    especially when you consider the broad availability of affordable and dependable barcoding

    solutions. Every level of the supply chain can be improved in some way with barcoding.

    Barcoded labels, printers and scanners can greatly expedite the process of getting a product

    to its end user by giving you a great deal of insight to the critical information you need in

    real time. In the warehouse, cross docking, yard management and pick-up and delivery

    operations can be made more efficient, saving you money and freeing up manpower.

    Improved inventory management means your company will spend less time looking for lost

    products and equipment, and will have better operational efficiencies

    ADVANTAGES OF BAR- CODING

    Bar coding is no longer reserved only for the checkout lane at the grocery store; more andmore organizations are using bar coding for the benefits it offers. Bar codes are simple

    patterns that can be scanned by optical reading machinery to pass along various kinds ofdata. Bar coding is used by many types of businesses and has many advantages.

    Data Collection: Bar coding has a distinct advantage when it comes to collecting data. Bar

    code scanners can collect more data more quickly than even a highly skilled typist can. Thissaves time as well as money.

    Savings: Besides eliminating the need for elaborate, expensive data collection systems, bar

    coding saves money by reducing the costly errors that are common with human typists.From an inventory control standpoint, bar coding can help an organization maintain more

    cost-effective levels.

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    Analysis: Bar coding has the advantage of making analyzing data much quicker and easier.Optical scanners scan bar codes, continually updating an organization's database on a real-time basis. Rather than having to wait for time-consuming counting or reconciliation efforts,a business can pull up current information on their inventory, parts and many other items byusing a bar coding system.

    Training: Bar coding systems require little employee training. Using a bar code scanner isvery simple, allowing managers and business owners to save a lot of time and money that

    would normally go toward training their staff. The majority of an organization's personnelcan begin using a bar coding system immediately.

    Flexibility: Bar coding can be used in a variety of applications. Although inventory control is

    one of the most popular applications, it is frequently used in parts identification and

    warehouse organization applications as well.

    Besides sales and inventory tracking, barcodes are very useful in logistics.

    When a manufacturer packs a box for shipment, a Unique Identifying Number (UID)

    can be assigned to the box.

    A database can link the UID to relevant information about the box; such as order

    number, items packed, qty packed, destination, etc.

    The information can be transmitted through a communication system such as

    Electronic Data Interchange (EDI) so the retailer has the information about a shipment

    before it arrives.

    Shipments that are sent to a Distribution Center (DC) are tracked before forwarding.

    When the shipment reaches its final destination, the UID gets scanned, so the store knows

    the shipment's source, contents, and cost.

    Barcode scanners are relatively low cost and extremely accurate compared to key-entry,

    with only about 1 substitution error in 15,000 to 36 trillion characters entered. The exacterror rate depends on the type of barcode.

    DISADVANTAGES OF BAR- CODING

    Barcodes are graphic images featuring a series of lines or bars, of varying thickness,positioned parallel to each other in such a way that a scanner passed along the image willtranslate their thickness and spacing with relation to each other as a series of numbers orcode . This code is then interpreted by customized software to produce pricing and stocking

    information in an effort to assist in the automation of the retail sales and stocking processes.It is a very efficient and effective system, but, like any other method of tracking inventory, itis not foolproof.

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    Pricing Discrepancies and Scanning Problems: When discounts apply to bar-coded

    merchandise, store employees may forget to code in the discount price. This, in turn, can

    lead to confusion and delays at the checkout counter, inconveniencing the customer, the

    checkout clerk, and other customers waiting in line. If a barcode can't be scanned, for any

    reason, the clerk must then read the corresponding numeric code and enter it manually.

    Because clerks have become used to scanning barcodes quickly and automatically, without

    any additional effort on their part, their lack of practice in manual code entries may

    potentially cause them to be slow and/or inaccurate in entering the information, furtherdelaying the checkout process.

    Label Damage: Barcodes that are printed on a torn section of packaging, or that have been

    smeared, smudged or otherwise damaged, will present additional scanning problems. If the

    corresponding numeric code is also illegible due to damage, the checkout process can be

    significantly delayed while another package of the same merchandise is located and brought

    to the checkout counter for scanning.

    Financial and Equipment Costs: For businesses that are not already equipped for barcode

    checkout, the cost of the equipment necessary to implement the new system can be

    prohibitive. Other delays can occur in training employees to adapt to new equipment, and

    expensive printers must be purchased to print coded labels for any merchandise that doesn't

    come prepackaged with a barcode already on it. Dot matrix and ink jet printers, for example,

    are generally incapable of printing finely-detailed barcodes.

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    Conclusion

    World is shrinking day by day with advancement of technology. Customers' expectations are

    also increasing and companies are prone to more and more uncertain environment. Thestrategic and technological innovations in supply chain will impact on how organizations buy

    and sell in the future. However clear vision, strong planning and technical insight into the

    Internet's capabilities would be necessary to ensure that companies maximize the Internet's

    potential for better supply chain management and ultimately improved competitiveness.

    Internet technology, World Wide Web, electronic commerce etc. will change the way a

    company is required to do business. These companies must realize that they must harness

    the power of technology to collaborate with their business partners. That means using a new

    breed of SCM application, the Internet and other networking links to observe past

    performance and historical trends to determine how much product should be made as well as

    the best and cost effective method for warehousing it or shipping it to retailer.

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    Food

    Corporation of

    India

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    IntroductionFood Corporation of India was setup on 14th January 1965 having its first District Office

    at Thanjavur in Tamilnadu and headquarters at CHENNAI under Food Corporations Act 1964

    to implement the following objectives of the National Food Policy

    Effective price support operations for safeguarding the interests of the farmers

    Distribution of food grains throughout the country for Public Distribution System

    Maintaining satisfactory level of operational and buffer stocks of food grains to ensure

    National Food Security

    It is the Largest Corporation in India and probably the largest supply chain management in

    Asia. It operates through 5 zonal offices and 24 regional offices. Each year, the Food

    Corporation of India purchases roughly 15-20 per cent of India's wheat output and 12-15 per

    cent of its rice output. The purchases are made from the farmers at the rates declared by

    the Govt. of India. This rate is called as MSP (Minimum support Price). There is no limit for

    procurement in terms of volume; any quantity can be procured by FCI provided the stock

    satisfies FAQ (Fair Average Quality) specifications with respect to FCI.

    The stocks are transported throughout India and issued to the State Government nominees

    at the rates declared by the Govt of India for further distribution under the Public

    Distribution System (PDS) for the consumption of the ration card holders. The difference

    between the purchase price and sale price, along with internal costs, are reimbursed by the

    Union Government in the form of Food Subsidy. FCI by itself is not a Decision making

    authority, it does not decide anything about the MSP(Minimum support Price), Imports or

    Exports. It just implements the decisions made by the Ministry of Food and Ministry ofAgriculture.

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    Procurement of FCI

    FCI undertakes the procurement of food grains on behalf of the Government of India &state Government in the states where it has been entrusted with this either as a sole agency

    or jointly with other public procurement agencies. The FCI purchases food grains from

    producers during both the seasons.FCI procures wheat, Paddy and rice for which the

    minimum support price (MSP) is announced by the Govt. of India well before

    commencement of Rabi and Kharif marketing seasons along with specifications. Only fair

    average quality (FAQ) food grains of laid down specifications by Govt. of India are

    purchased. The purchase centres during procurement are operated to facilitate the purpose

    of food grains from farmers in such a manner that farmers need not to cover more than 10

    K.Ms. Purchase centres are allotted by state govt. among the procuring agencies i.e. FCI and

    state govt. Agencies. The allocation of purchase centres is decided by concerned state govt.

    along with the share of procurement of procurement of wheat and paddy. If the farmers able

    to get a higher price, they are free to sell their produce to the traders/food grains dealers.

    The main procuring states are Punjab and Haryana, & the levy percentage is 7.5%. FCI is

    also functioning in Rajasthan and activities of procurement, storage, preservation of stocks

    and distribution have been undertaken successfully. In Rajasthan the levy percentage is

    50%. The main crop is wheat, Paddy and cereals i.e. Bajra, Maize and Jowar which are not

    procured by FCI.

    Distribution Chain of FCI

    The Government, via the Food Corporation of India (FCI), procures and stocks food grains

    which are released every month for distribution through the PDS (Public Distribution System)

    network across the country. The procedure for distribution of food grains by the Food

    Corporation of India (FCI) and the State Governments or their nominated / designated

    agencies shall be publicized widely for knowledge of the general public. The FCI shall ensure

    physical delivery of food grains of fair average quality to the State Governments for

    distribution under the TARGETED PUBLIC DISTRIBUTION SYSTEM (TPDS) as per the

    allocations made by the Central Government within one week of the receipt of payments

    from the State Governments.

    On getting the allocation of food grains from the Central Government, the State Government

    shall issue district-wise allocation orders authorizing their agencies/corporations to draw food

    grains from the FCI and ensure delivery of the same to the Fair Price Shops. The distribution

    system would be made transparent. At each delivery point, samples of food grains meant

    for distribution under TPDS along with the quantity in stock shall be made available for

    scrutiny by any stakeholder (local citizens and their representatives).

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    Problems faced by FCI

    Food Corporation of India (FCI) may face a problem of plenty with the countrys

    largest food grain agency grappling to hold the mounting stocks. Officials of the agency

    might be scouting schools and rented warehouses to store wheat due to limited

    warehousing capacity or storage space. It is faced with a storage problem.

    Over the last month, the state-run Food Corporation of India (FCI) has twice stopped

    payments to state governments, various grain-purchasing agencies and rice millers who

    buy wheat and rice, the main food crops, from millions of farmers. Food Corporation of

    India (FCI) does not face a payments crisis, and that all the budgeted money has been

    released. State-run agency seeking an urgent infusion of Rs 38,000 crore to pay for grain

    purchases. The problem, however, is not with subsidies budgeted for FCI. First, it is with

    arrears that have been mounting over the last six years and stand today at more than Rs

    11,000 crore. Food subsidy defaults to FCI have grown 800% over the last six years All

    this has left FCI with a serious cash flow problem. As we reported, FCI has twice over thepast month had to stop payments to state agencies and rice millers.

    If this financial crisis continues, FCI and state agencies funded by it will not be able to

    procure grain. This is a serious situation, and it is being brought to the notice of the finance

    minister.With no income of its own except government subsidies and since it is not allowed

    to legally refuse to buy produce from the farmer. FCI is ensuring salaries to employees and

    workers who heft sacks of grain, freight charges and interest payments to a consortium of

    59 banks are kept going so procurement does not immediately stop.

    Future Improvements in FCI There is considerable scope to improve FCIs performance, to lower its costs of operation

    and, most importantly, to raise the quality of the grain it supplies. Nonetheless, as per the

    FCI costs and market prices and views expressed by the States, FCI has performed

    reasonably well in maintaining the Central pool, in long-distance movement, and in direct

    interventions when producer prices have fallen below MSP or there have been particular

    regional shortages. Also FCI should develop these areas of core competence, concentrating

    on rice and wheat.

    While the FCI must remain the main agency for procurement and distribution, State

    government agencies, co-operatives and private trade may also handle these operations in

    the future. However, the FCI must play a developmental role by starting procurement

    centres where they do not exist, and become a 'buyer of last resort' in case of decentralised

    procurement.

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    Practical analysis

    To get a practical knowledge about the process of supply chain management followed in

    Food Corporation of India, we visited the district food corporation depot located at Borivali

    East. There we met Mr. Anil Chavan, the union leader of the depot and Mr. V.G. Khobragade,

    the quality control manager of the depot. We are very thankful to both of them for providing

    us with such valuable information required for our project.

    After a two and a half hour long conversation with both the officials, the following is

    the knowledge that we gained from them.

    Food corporation of India is an public sector undertaking. The Borivali depot was established

    in 1969 and had only 5 go-downs in the beginning. There are three main steps followed in

    the FCI to keep the flow of food grains going all over the country. They are

    Procurement

    Warehousing and

    Distribution.

    The basic motto of FCI is to serve the farmers. They intervene and help prevent exploitation

    of farmers who sell their food grains to a private marketer at cheaper rates other than the

    rates fixed by the government. FCI not only deals in rice and wheat, but it also maintains

    stocks of jowar, bajra, maize, pulses etc.

    The objective of the FCI is to transfer the food grains from the place of excess to the place

    where there is scarcity/deficit.

    PROCUREMENT:

    Whenever there is excess supply from the farmers, FCI intervenes and purchases the grains

    from the farmers at the rate fixed by the state government. The rate at which FCI currently

    purchases the food grains from farmers is Rs. 6.50 for per kg of rice and Rs. 8.50 for per kg

    wheat. These rates are decided by the state government at the time of Kharif and Rabi

    season. There also provision of subsidies for farmers as well as for the FCI.

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    FCI approaches the farmers by going to their fields and purchases their grains. Or at times

    farmers themselves walk to the FCI depots to sell their grains. After the farmers approach

    the FCI with their grains, FCI checks the grains by conducting various tests like the quality

    control test, moisture content check, etc. If the grains are approved by the quality control

    manager, then the grains are purchased and the full payment is done to the farmers at the

    time of purchase itself. Quality check is done in every stage and at every level in FCI. No

    marketer tries to go beyond the rates the fixed by the state government. Hence farmers

    prefer selling the grains to the FCI in order to avoid exploitation.

    WAREHOUSING:

    After the grains are collected by the state government, the next step is to pack the grains

    and sent them to respective warehouses. The food grains are packed in gunny bags and

    transported to various warehouses in different states as per the requirement through

    wagons. The FCI has its warehouses in north, south, east and west and even at the north

    east frontier. Its main headquarter is at Delhi. In the FCI depot at Borivali where we visited,

    there are rail tracks just next to the warehouse. Wagons carrying food grains halt there and

    are emptied manually. Each gunny bag weighs only 50 kgs. As per the Indian labour

    organisation, it is mandatory that no human being should lift the weight which is more than

    his body weight. And hence, these gunny bags weigh only 50 kgs. The total capacity of the

    depot warehouse is 135,000 tons out if which they currently have a stock of 117,000 tons ofwheat. The depot has in all 52 go-downs. The total depot area is around 118 acres. At a time

    7 wagons can halt in front of the warehouse. Mr. Anil Chavan, also added that last year the

    national requirement for food grains was around 6900,000 tons of grains and the production

    went up to 8900,000 tons of food grains. In such cases when they have excess stocks, they

    either hire private warehouses on rental basis or purchase those warehouses. This decision is

    taken by the FCI head i.e. chairman cum managing director of the FCI. Also the FCI

    maintains 30% reserves of grains known as the buffer stocks to meet the excess

    requirement during any natural calamity or emergencies. FCI has computerised depot

    administration to maintain the accounts. It maintains its records through integrated rapid

    reporting system (IRRS). This information is directly monitored by the headquarters at Delhi.

    With the help of this information, the state government frames policies and movement plan

    is also framed i.e. allocation of grains to various states is done.

    DISTRIBUTION:

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    The distribution is planned by the state government with the help of records supplied from

    various depots. FCI supplies food grains to defence forces and even to the north east

    frontier. In the west zone, the distribution is done to Maharashtra, Goa, Gujarat,

    Chhattisgarh and Madhya Pradesh. The depot at Borivali covers the area from Colaba to

    Palghar. The basic distribution takes place in the following form:

    The director o civil supply of the state government agency picks the grains from FCI go-

    downs, gives it to rationing shops and wholesalers, and then the grains reach theconsumers. District collectors are appointed to look after the proper distribution of allocated

    grains. The stock is audited by the state bank of Indias auditor to check for quality of food

    grains distributed. FCI also appoints squads or agents to keep a check on the rationing

    prices. FCI follows FIFO i.e. the first in first out trend. The grains which enter the go-down

    first are distributed first.

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    Conclusion

    From the information that we gained from FCI, we can come to the conclusion that FCI has a

    great maintenance and warehousing facilities, proper recod maintenance is also done, and

    ever move is well planned. But as every coin has two sided, FCI instead of having such good

    process, it also has few drawbacks. They are:

    Lack of control over the stock of grains once they leace the depot. The FCI has

    no control over the grains after that. They cannot trace whether the grains reach the

    destination in the same form as they are loaded from the depot. They have no checks

    to see whether any manipulation takes place after the goods have left the depot.

    Secondly, lack of ability to supply good quality grains to the consumer. As they

    do not have any control, the grains are mixed with bad quality grains thus exploitingthe consumers.

    The FCI has been demanding the state government that they should be given the direct

    distribution rights in order to stop the exploitation by the middlemen but this plea has

    always been fallen on deaf ears.

    Hence, we would conclude by saying that the system is never wrong, the people

    running the system are wrong.

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    Bibliography

    Websites visited:

    http://www.ehow.com/about_5044719_advantages-bar-coding.html

    http://www.epiqtech.com/supply_chain.htm

    http://www.witiger.com/internationalbusiness/SupplyChainManagement.htm

    http://searchmanufacturingerp.techtarget.com/definition/supply-chain-

    management.

    http://fcamin.nic.in/dfpd_html/plan-scheme.html

    http://post.jagran.com/lack-of-staff-responsible-for-poor-state-of-food-

    corporation-of-india-1303568311 http://fcp.bih.nic.in/Procurement.htm

    http://fciweb.nic.in/procurements

    http://www.indianmba.com/Faculty_Column/FC461/fc461.html

    http://www.ehow.com/about_5474836_impact-technology-supply-chain-

    management.html

    22

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