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Symbiosis Institute of Management

Studies

PROJECT REPORT ON

“STUDY OF WAREHOUSE MANAGEMENT OF

TELECOM INDUSTRY IN MAHARASHTRA & GOA

WITH REFERENCE TO AIRCEL LTD.”

A STUDY SUBMITTED AS A PART OF THE REQUIREMENTS

FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

Ramnarayan Yadav

OPERATIONS

Batch 2011-14

PROJECT GUIDE AND MENTOR

Prof. S. R. Phadke

SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES (SIMS)

(CONSTITUENT OF SYMBIOSIS INTERNATIONAL UNIVERSITY)



CERTIFICATE

This is to certify that project title “STUDY STUDY OF WAREHOUSE

MANAGEMENT OF TELECOM INDUSTRY IN MAHARASHTRA & GOA

WITH REFERENCE TO AIRCEL LTD” is bonafied work carried out by

Mr. Ramnarayan Yadav student of MBA (Executive Education) in Symbiosis Institute

of Management Studies has worked under our guidance and supervision.

Prof. S R Phadke

(Guide)

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DECLARATION

I, the undersigned, hereby declare that the report entitled “STUDY OF

WAREHOUSE MANAGEMENT OF TELECOM INDUSTRY IN

MAHARASHTRA & GOA WITH REFERENCE TO AIRCEL LTD” is a work

prepared by me under the guidance of Prof. S.R. Phadke.

The empirical findings of the study are entirely based in the data collected by myself from

various sources. The matter represented in this report is not copied from any illegal

source. I the undersigned know that such copying is liable to be punished as the

authorities deem fit.

Ramnrayan Yadav

MBA Exe. Edu.

3rd Semester

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ACKNOWLEDGEMENT

I am extremely grateful to my project guide professor S. R. Phadke who helped me choose

an interesting topic for case study and guided me to successfully complete this project

with appropriate due diligence. Without his guidance this project would not have been

completed.

Thank you Professor S.R. Phadke for your help!

Ramnarayan Yadav

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ContentsCERTIFICATE ........................................................................................................................... 2

DECLARATION ........................................................................................................................ 3

Contents ................................................................................................................................. 5

INTRODUCTION OF TELECOMMUNICATION ............................................................................ 7

HISTORY OF GSM ................................................................................................................ 8

TELECOMMUNICATIONS STATISTICS IN INDIA ................................................................ 10

THE DOT AND THE PRECURSOR TO REFORM ...................................................................... 12

TELECOMMUNICATIONS REGULATORY AUTHORITY OF INDIA (TRAI) ................................... 15

BASIC STRUCTURE OF INDIAN TELECOM .............................................................................. 17

....................................................................................................................................... 18

ABOUT AIRCEL ...................................................................................................................... 18

MISSION STATEMENT ........................................................................................................... 20

OUR GOALS AND VALUES .................................................................................................. 20

PAN NDIA AIRCEL SUBSCRIBER BASE ................................................................................ 21

AIRCEL MARKET SHARE IN MAHARASHTRA & GOA .............................................................. 22

Organisation Structure ...................................................................................................... 22POCKET BUDDIES ............................................................................................................. 23

START UP KITS- PLANS ..................................................................................................... 24

TOPUPS ............................................................................................................................ 24

RATE CUTTERS ................................................................................................................. 25

AIRCEL ISD CARD .............................................................................................................. 28

OBEJECTIVE AND METHODOLOGY OF THE PROJECT STUDY ................................................. 29

RESEARCH METHODOLOGY ............................................................................................... 29

PRIMARY DATA: ............................................................................................................. 30

SECONDARY DATA: ........................................................................................................ 30

SAMPLE SIZE: .................................................................................................................... 30

BACKGROUND .................................................................................................................. 30

SUPPLY CHAIN MANAGEMENT ........................................................................................... 31

SUPPLY CHAIN DECISIONS ................................................................................................. 31

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NEED FOR SCM .................................................................................................................. 33

SUPPLY CHAIN MANAGEMENT PROBLEM ........................................................................... 34

PROJECT SCALE & SPAN OF CONTROL ........................................................................... 34

TECHNOLOGY ................................................................................................................. 35

TECHNOLOGY SOLUTIONS ............................................................................................. 35

COST OF TECHNOLOGY ABSORPTION ............................................................................ 35

AVAILABILITY OF TECHNOLOGY INFRASTRUCTURE ........................................................ 36

INTERNAL & EXTERNAL RESOURCE CAPABILITY ............................................................. 36

WAREHOUSING FUNCTIONS AND OBJECTIVES ............................................................... 36

WAREHOUSE LOCATION ................................................................................................. 37

WAREHOUSE LAYOUT ........................................................................................................ 37

WAREHOUSE COSTING ..................................................................................................... 38

INVENTORY CONTROL ....................................................................................................... 39

FINDING & ANALYSIS ............................................................................................................ 39

MODERN INVENTORY CONTROL TECHNIQUES USED BY AIRCEL .......................................39

.......................................................................................................................................... 42

CONCLUSION ........................................................................................................................ 44

THREE-PART SOLUTION TO ACHIEVE PERFORMANCE IMPROVEMENT ...............................45

PEOPLE .............................................................................................................................. 45

PROCESSES AND SYSTEMS ............................................................................................... 46METRICS ............................................................................................................................ 47

Abbrivations ......................................................................................................................... 47

BIBLIOGRAPHY ..................................................................................................................... 47

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INTRODUCTION OF TELECOMMUNICATION

The word telecommunication was adapted from the French word telecommunication. It is a compound of

the Greek prefix TELE, meaning 'FAR OFF', and the Latin COMMUNICARE, meaning 'TO SHARE'.

Telecommunication is the transmission of signals over a distance for the purpose of communication. In

modern times, this process almost always involves the sending of electromagnetic waves by electronic

transmitters but in earlier years it may have involved the use of smoke signals, drums or semaphore.

Today, telecommunication is widespread and devices that assist the process, such as the television, radio

and telephone, are common in many parts of the world. There is also a vast array of networks that

connect these devices, including computer networks, public telephone networks, radio networks and

television networks. Computer communication across the Internet, such as e-mail and instant messaging,

is just one of many examples of telecommunication.

The basic elements of a telecommunication system are:

• A transmitter that takes information and converts it to a signal for transmission

• A transmission medium over which the signal is transmitted

• A receiver that receives and converts the signal back into usable information

Often telecommunication systems are two-way and devices act as both a transmitter and receiver or

transceiver. For example, a mobile phone is a transceiver . Telecommunication over a phone line is called

point-to-point communication because it is between one transmitter and one receiver, telecommunication

through radio broadcasts is called broadcast communication because it is between one powerful

transmitter and numerous receivers.

A collection of transmitters, receivers or transceivers that communicate with each other is known as a

network . Digital networks may consist of one or more routers that route data to the correct user. An

analogue network may consist of one or more switches that establish a connection between two or more

users. For both types of network, a repeater may be necessary to amplify or recreate the signal when it is

being transmitted over long distances. This is to combat attenuation that can render the signal

indistinguishable from noise.

of 48

http://en.wikipedia.org/wiki/Transmission

http://en.wikipedia.org/wiki/Signal_(electrical_engineering)

http://en.wikipedia.org/wiki/Communication

http://en.wikipedia.org/wiki/Electromagnetic_wave

http://en.wikipedia.org/wiki/Smoke_signal

http://en.wikipedia.org/wiki/Drum_(communication)

http://en.wikipedia.org/wiki/Semaphore

http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/Radio

http://en.wikipedia.org/wiki/Telephone

http://en.wikipedia.org/wiki/Computer_network

http://en.wikipedia.org/wiki/Public_telephone_network

http://en.wikipedia.org/wiki/Radio_network

http://en.wikipedia.org/wiki/Television_network

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/E-mail

http://en.wikipedia.org/wiki/Instant_messaging

http://en.wikipedia.org/wiki/Transmitter

http://en.wikipedia.org/wiki/Information


http://en.wikipedia.org/wiki/Transmission_medium

http://en.wikipedia.org/wiki/Receiver

http://en.wikipedia.org/wiki/Mobile_phone

http://en.wikipedia.org/wiki/Transceiver

http://en.wikipedia.org/wiki/Point-to-point_communication_(telecommunications)

http://en.wikipedia.org/wiki/Broadcasting

http://en.wikipedia.org/wiki/Telecommunications_network

http://en.wikipedia.org/wiki/Routers

http://en.wikipedia.org/wiki/Telephone_switch

http://en.wikipedia.org/wiki/Repeater

http://en.wikipedia.org/wiki/Attenuation

http://en.wikipedia.org/wiki/Noise

http://en.wikipedia.org/wiki/Transmission


http://en.wikipedia.org/wiki/Communication

http://en.wikipedia.org/wiki/Electromagnetic_wave

http://en.wikipedia.org/wiki/Smoke_signal

http://en.wikipedia.org/wiki/Drum_(communication)

http://en.wikipedia.org/wiki/Semaphore

http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/Radio

http://en.wikipedia.org/wiki/Telephone

http://en.wikipedia.org/wiki/Computer_network

http://en.wikipedia.org/wiki/Public_telephone_network

http://en.wikipedia.org/wiki/Radio_network

http://en.wikipedia.org/wiki/Television_network

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/E-mail

http://en.wikipedia.org/wiki/Instant_messaging

http://en.wikipedia.org/wiki/Transmitter

http://en.wikipedia.org/wiki/Information


http://en.wikipedia.org/wiki/Transmission_medium

http://en.wikipedia.org/wiki/Receiver


http://en.wikipedia.org/wiki/Transceiver

http://en.wikipedia.org/wiki/Point-to-point_communication_(telecommunications)

http://en.wikipedia.org/wiki/Broadcasting

http://en.wikipedia.org/wiki/Telecommunications_network

http://en.wikipedia.org/wiki/Routers

http://en.wikipedia.org/wiki/Telephone_switch

http://en.wikipedia.org/wiki/Repeater

http://en.wikipedia.org/wiki/Attenuation

http://en.wikipedia.org/wiki/Noise



The shaping of a signal to convey information is known as modulation. Modulation is a key concept in

telecommunications and is frequently used to impose the information of one signal on another.

Modulation is used to represent a digital message as an analogue waveform. This is known as keying and

several keying techniques exist — these include phase-shift keying, frequency-shift keying, amplitude-

shift keying and minimum-shift keying. Bluetooth, for example, uses phase-shift keying for exchanges

between devices.

HISTORY OF GSM

The Group Special Mobile (GSM) was created in 1982 by European Conference of postal and

Telecommunications Administrations (CEPT) with the objective of developing a standard for a mobile

telephone system that could be used across Europe. In 1989, GSM responsibility was transferred to the

European Telecommunications Standards Institute (ETSI).The phase I of the GSM specifications were

published in 1990. The first GSM network was launched in 1991 by Radiolinja in Finland. By the end of

1993, over a million subscribers were using GSM phone networks The growth of cellular telephone

systems started in the early 1980s, particularly in being operated by 70 carriers across 48 countries.

The Global System for Mobile communications (GSM: originally from Group Special Mobile) is the

most popular standard for mobile phones in the world. GSM service is used by over 2 billion people

across more than 212 countries and territories. The ubiquity of the GSM standard makes international

of 48

http://en.wikipedia.org/wiki/Modulation

http://en.wikipedia.org/wiki/Keying

http://en.wikipedia.org/wiki/Phase-shift_keying

http://en.wikipedia.org/wiki/Frequency-shift_keying

http://en.wikipedia.org/wiki/Amplitude-shift_keying


http://en.wikipedia.org/wiki/Minimum-shift_keying

http://en.wikipedia.org/wiki/Bluetooth


http://en.wikipedia.org/wiki/European_Telecommunications_Standards_Institute

http://en.wikipedia.org/wiki/Radiolinja

http://en.wikipedia.org/wiki/Finland

http://en.wikipedia.org/wiki/Cellular_telephone


http://en.wikipedia.org/wiki/1000000000_(number)

http://en.wikipedia.org/wiki/Modulation

http://en.wikipedia.org/wiki/Keying


http://en.wikipedia.org/wiki/Frequency-shift_keying



http://en.wikipedia.org/wiki/Minimum-shift_keying

http://en.wikipedia.org/wiki/Bluetooth


http://en.wikipedia.org/wiki/European_Telecommunications_Standards_Institute

http://en.wikipedia.org/wiki/Radiolinja

http://en.wikipedia.org/wiki/Finland

http://en.wikipedia.org/wiki/Cellular_telephone


http://en.wikipedia.org/wiki/1000000000_(number)



roaming very common between mobile phone operators, enabling subscribers to use their phones in many

parts of the world.

From the point of view of the consumers, the key advantage of GSM systems has been higher digital

voice quality and low cost alternatives to making calls such as the Short Message Service (SMS).

The advantage for network operators has been the ability to deploy equipment from different vendors

because the open standard allows easy inter-operability. Like other cellular standards GSM allows

network operators to offer roaming services which mean subscribers can use their phones all over the

world.

GSM is a cellular network , which means that mobile phones connect to it by searching for cells in the

immediate vicinity. GSM networks operate in four different frequency ranges. Most GSM networks

operate in the 900 MHz or 1800 MHz bands. Some countries in the Americas (including the United

States and Canada) use the 850 MHz and 1900 MHz bands because the 900 and 1800 MHz frequency

bands were already allocated.

Global System for Mobile communications

The GSM logo is used to identify compatible handsets and equipment.

There are four different cell sizes in a GSM network

• macro

• Micro

• Pico

• Umbrella cells.

The coverage area of each cell varies according to the implementation environment. Macro cells can be

regarded as cells where the base station antenna is installed on a mast or a building above average roof

top level. Micro cells are cells whose antenna height is under average roof top level; they are typically

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http://en.wikipedia.org/wiki/Roaming

http://en.wikipedia.org/wiki/Mobile_phone_operator

http://en.wikipedia.org/wiki/Short_message_service


http://en.wikipedia.org/wiki/Cellular_network


http://en.wikipedia.org/wiki/GSM_frequency_ranges

http://en.wikipedia.org/wiki/Base_station

http://en.wikipedia.org/wiki/Antenna_(electronics)

http://en.wikipedia.org/wiki/Image:GSMLogo.jpg


http://en.wikipedia.org/wiki/Mobile_phone_operator



http://en.wikipedia.org/wiki/Cellular_network


http://en.wikipedia.org/wiki/GSM_frequency_ranges


http://en.wikipedia.org/wiki/Antenna_(electronics)



used in urban areas. Pico cells are small cells whose diameter is a few dozen meters; they are mainly used

indoors. Umbrella cells are used to cover shadowed regions of smaller cells and fill in gaps in coverage

between those cells.

The network behind the GSM system seen by the customer is large and complicated in order to provide

all of the services which are required. It is divided into a number of sections and these are each covered

in separate articles.

• The Base Station Subsystem (the base stations and their controllers).

• The Network and Switching Subsystem (the part of the network most similar to a fixed network).

This is sometimes also just called the core network.

• The GPRS Core Network (the optional part which allows packet based Internet connections).

All of the elements in the system combine to produce many GSM services such as voice calls and SMS

TELECOMMUNICATIONS STATISTICS IN INDIA

India has the fastest growing telecom network in the world with its high population and development

potential. Airtel, Idea, Reliance, Tata DoCoMo, BSNL, Aircel, Tata Indicom, Vodafone, MTNL, and

Loop Mobile are other major operators in India. However, rural India still lacks strong infrastructure.India's public sector telecom company BSNL is the 7th largest telecom company in world.

Telephony introduced in India in 1882. The total number of telephones in the country stands at 960.9

million, while the overall teledensity has increased to 79.28% as of May 31, 2012. and the total numbers

of mobile phone subscribers have reached 929.37 million as of May 2012. The mobile tele-density has

increased to 76.68% in May 2012. In the wireless segment, 8.35 million subscribers were added in May

2012. The wire line segment subscriber base stood at 31.53 million.

Indian telecom operators added a staggering 227.27 million wireless subscribers in the 12 months

between Mar 2010 and Mar 2011 averaging at 18.94 million subscribers every month. To put this into

perspective, China which currently possesses the world's largest telecommunications network added

119.2 million wireless subscribers during the same period (March 2010 - March 2011) - averaging 9.93

million subscribers every month (a little over half the number India was adding every month). So, while

of 48

http://en.wikipedia.org/wiki/Base_Station_Subsystem


http://en.wikipedia.org/wiki/Network_and_Switching_Subsystem

http://en.wikipedia.org/wiki/GPRS_Core_Network

http://en.wikipedia.org/wiki/GSM_services


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Airtel

http://en.wikipedia.org/wiki/Idea_Cellular

http://en.wikipedia.org/wiki/Reliance_Communications

http://en.wikipedia.org/wiki/Tata_DoCoMo

http://en.wikipedia.org/wiki/BSNL

http://en.wikipedia.org/wiki/Aircel

http://en.wikipedia.org/wiki/Tata_Indicom

http://en.wikipedia.org/wiki/Vodafone_India

http://en.wikipedia.org/wiki/MTNL

http://en.wikipedia.org/wiki/Loop_Mobile


http://en.wikipedia.org/wiki/Telephones

http://en.wikipedia.org/wiki/Teledensity

http://en.wikipedia.org/wiki/Base_Station_Subsystem


http://en.wikipedia.org/wiki/Network_and_Switching_Subsystem

http://en.wikipedia.org/wiki/GPRS_Core_Network

http://en.wikipedia.org/wiki/GSM_services


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Airtel

http://en.wikipedia.org/wiki/Idea_Cellular

http://en.wikipedia.org/wiki/Reliance_Communications

http://en.wikipedia.org/wiki/Tata_DoCoMo


http://en.wikipedia.org/wiki/Aircel

http://en.wikipedia.org/wiki/Tata_Indicom

http://en.wikipedia.org/wiki/Vodafone_India

http://en.wikipedia.org/wiki/MTNL

http://en.wikipedia.org/wiki/Loop_Mobile


http://en.wikipedia.org/wiki/Telephones

http://en.wikipedia.org/wiki/Teledensity



India might currently be second to China in the total number of mobile subscribers, India has been adding

nearly twice as many subscribers every month until March 2011. Mobile teledensity increased by almost

18.4 percentage points from Mar 2010 and Mar 2011 (49.60% to 67.98%) while wire line subscriber

numbers fell by a modest 2.2 million. This frenetic pace of monthly subscriber additions means that the

Indian mobile subscriber base has shown a year on year growth of 43.23%. According to recent reports,

India was purported to overtake China to become the world's largest mobile telecommunications market

by the year 2013. It was also predicted that by 2013, the teledensity will shoot up to 75% and the total

mobile subscriber base would be a colossal 1.159 billion.

MONTHLY MOBILE SUBSCRIBER ADDITIONS

The following table illustrates the gradual increase in monthly mobile subscriber additions (in millions)

in India since January 2002.

Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Annual

Additions(

in

millions)

Average

Monthly

Additions(i

n millions)

2002 0.28 0.35 0.41 0.28 0.29 0.35 0.36 0.49 0.37 0.53 0.72 0.8 5.23 0.44

2003 0.64 0.6 0.96 0.64 2.26 1.42 2.31 1.79 1.61 1.67 1.9 1.69 17.49 1.46

2004 1.58 1.6 1.91 1.37 1.33 1.43 1.74 1.67 1.84 1.51 1.56 1.95 19.49 1.62

2005 1.76 1.67 0.73 1.46 1.72 1.98 2.45 2.74 2.48 2.9 3.51 4.46 27.86 2.32

2006 4.69 4.28 5.03 3.88 4.25 4.78 5.28 5.9 6.07 6.71 6.79 6.48 64.14 5.35

2007 6.81 6.21 3.53 6.11 6.57 7.34 8.06 8.31 7.79 8.05 8.32 8.17 85.27 7.11

2008 8.77 8.53 10.16 8.21 8.62 8.94 9.22 9.16 10.07 10.42 10.35 10.81 113.26 9.44

2009 15.41 13.82 15.64 11.90 11.58 12.04 14.38 15.08 14.98 16.67 17.65 19.10 178.25 14.85

2010 19.90 18.76 20.59 16.9 16.31 17.98 16.92 18.18 17.1 18.98 22.88 22.62 227.12 18.93

2011 18.99 20.20 20.21 15.34 13.35 11.41 6.67 7.34 7.90 7.79 2.97 9.47 148.32 11.80

2012 9.88 7.44 8.00 1.85 8.35

Table -1

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THE DOT AND THE PRECURSOR TO REFORM

In one of the earliest steps towards reforms and boosting indigenization efforts, the government set up the

Centre for Development of Telematics (C-DOT) in 1984 with the objective of initiating and managing

research in the switching and transmission segments. Subsequently, the government separated the

Department of Post and Telegraph in 1985 by setting up the Department of Post and the Department of

Telecommunications.

In 1986 two new public sector corporations. The Mahanagar Telephone Nigam Limited (MTNL) and the

Videsh Sanchar Nigam

Limited (VSNL).were set up under the Department of Telecommunications (DoT).

The MTNL, which was carved out of the Dot, took over the operation, maintenance, and development of

telecom services in Bombay and New Delhi. The VSNL was set up to plan, operate, develop, and

accelerate international telecom services in India. The government created the corporate organizations in

orderto allows decision making autonomy and flexibility and facilitates public borrowings that would not

have been possible under a government framework. However, policy formulation, regulation, and several

key decision areas remained with the DoT.

A new organization, the Telecom Commission, was created in 1989 with a wide range of executive,

administrative, and financial powers to formulate and regulate policy and prepare the budget for the DoT.

The Telecom Commission had four full-time members’ managing technology, production, services, and

finance and four part-time members representing the Planning Commission, Department of Finance,

Department of Industry, and Department of Electronics. The creation of the MTNL, its subsequent

operations, and the relationship of the personnel employed in the MTNL to their counterparts in the DoT

raised questions about the organizational structure most suited for this sector. Therefore, in 1991, upon

government initiative, the high-powered Athreya Committee submitted a report on the appropriate

organizational structures for this sector.

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The report recommended:

1. Placing both policy and regulatory mechanisms under the Telecom Commission.

2. Breaking up of the DoT into zonal corporations under the government.

3. Setting up of a corporation, initially in the public sector, to handle the long-distance network.

4. Allowing value-added services (VASs) to be provided by the private sector.

5. Indicating general liberalization in production of equipment giving autonomy to R&D and

training institutions.

6. Subsequently, other studies for reforms had been commissioned, but in the absence of public

debate, and employee and union concerns regarding the consequences of implementation.

7. The government did not formally adopted any report.. Since 1997, there were several statements

in the media by key decision makers and the Communications Minister calling for corporatization

of the DoT. However, there was very little public information or debate regarding the sequence of

decisions leading to corporatization or the form of corporate structure.

8. Since 1995, there was increasing pressure from international organizations such as the WTO to

review the monopoly status of the VSNL and the Dot’s monopoly in international long-distance

communication respectively. The government had undertaken to

9. Review the monopoly status of the VSNL in 2004 and the possibility of opening of long distance

in 1999.

10. The VSNL continued to have a monopoly over international telecom and broadcast transmission.

It had planned to enter the long-distance market but the DoT hampered its plans. In 1999, the

government created the Department of Telecom Services (DTS), who’s Secretary was appointed

from the Indian Telecom Services (ITS) cadre, and the DoT from the erstwhile the DoT, who’s

Secretary was appointed from the Indian Administrative Services (IAS). This was done ostensibly

to separate the service provision component (DTS) from that of policy making (DoT). In reality

this was to accommodate the conflict caused by the government’s decision to appoint a Secretary

to the department from the IAS, as DoT employees wanted the Secretary to be from the ITS.

When the DTS Secretary retired, the government appointed an IAS officer in his place, which

again led to agitation and further bifurcation of the DTS into the Department of Telecom

Operations (DTO) and DTS. The DTS was to be headed by an IAS officer responsible for the

MTNL, VSNL, Telecommunications Corporation of India Limited (TCIL), Indian Telephone

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Industries Ltd. (ITI), and Hindustan Teleprinters Limited (HTL) as well as for formulating the

strategy for corporatization. The DTO was responsible for managing the telecom network.

11. The government’s view has been that a person from outside the ITS cadre would be better able to

oversee the corporatization of

12. the DoT since in the past senior management of the erstwhile DoT, mostly from the ITS, had

resisted any kind of change

13. Although an outsider Secretary was ostensibly to facilitate corporatization, it is not clear how,

without the requisite mandate from the employees and especially the senior managers, he/she

would be able to lead such a major task. This is not to say that the ITS cadre was better equipped

to handle this task. What was missing was an overall strategy and an indication of the direction of

change to inform the administrative changes. The government seemed to view corporatization as

an administrative decision rather than a process.

14. The Athreya Committee report as well as subsequent reports on restructuring may be viewed as

the initiation of a process of

15. examining organizational options. The reports, however, did not accord due attention to the need

for autonomy in financial and

16. Operational decision making. Management incentives that would have allowed these

organizations to increase profitability and raise capital from markets had been only very sketchily

outlined Thus access to capital would have been a problem.

17. Besides the limitations, the suggested changes were superficial since most .restructured.

Organizations showed too much of a

18. Control and rule orientation and continued to work in much the same manner as before.

19. Inability of top management and political executives to address the need to make the DoT more

competitive could be cited as a failure. Given the large base of employees who had been

entrenched in a typical bureaucratic mode of functioning providing

20. Customer orientation and a commercial approach were, and continue to be, the most difficult

tasks. The DoT had no specific training policy in this regard. Though there were several training

centers, these were not equipped to provide management training. The restructuring was far more

concerned with form than content.

21. Areas like identifying the mechanisms for acquiring new core

Capabilities, developing appropriate incentives, and nurturing a climate in which change could take place

were lacking

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TELECOMMUNICATIONS REGULATORY AUTHORITY OF INDIA

(TRAI)

The Telecommunications Regulatory Authority of India or TRAI (established in 1997) is the

independent regulator established by the Government of India to regulate the telecommunications

business in India. Notwithstanding anything contained in the Indian Telegraph Act, 1885, the functions of

the Authority shall be to-

A. Make recommendations, on a request from the licensor, on the following matters, namely :

1. Need and timing for introduction of new service provider;

2. Terms and conditions of license to a service provider;3. Revocation of license for non-compliance of terms and conditions of license:

4. Measures to facilitate competition and promote efficiency in the operation of telecommunication

services so as to facilitate growth in such services.

5. Technological improvements in the services provided by the service providers.

6. Type of equipment to be used by the service providers after inspection of equipment used in the

network.

7. Measures for the development of telecommunication technology and any other matter relatable to

telecommunication industry in general;

B. Discharge the following functions, namely:-

1. Ensure compliance of terms and conditions of license;

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2. Notwithstanding anything contained in the terms and conditions of the license granted before the

commencement of the Telecom Regulatory Authority (Amendment) Ordinance,2000, fix the terms

and conditions of inter-connectivity between the service providers;

3. Ensure technical compatibility and effective inter-connection between different service providers.

4. Regulate arrangement amongst service providers of sharing their revenue derived from providing

telecommunication services;

5. Lay down the standards of quality of service to be provided by the service providers and ensure

the quality of service and conduct the periodical survey of such service provided by the service

providers so as to protect interest of the consumers of telecommunication services;

6. Lay down and ensure the time period for providing local and long distance circuits of

telecommunication between different service providers;

7. Maintain register of interconnect agreements and of all such other matters as may be provided in

the regulations;

8. Keep register maintained under clause (viii) open for inspection to any member of public on

payment of such fee and compliance of such other requirement as may be provided in the regulations;

9. Ensure effective compliance of universal service obligations:

C. Levy fees and other charges at such rates and in respect of such services as may be determined by

regulations.

D. Perform such other functions including such administrative and financial functions as may be

entrusted to it by the Central Government or as may be necessary to carry out the provisions of this

act.

Provided that the recommendations of the Authority specified in the clause (a) of this sub-section shall

not be binding upon the Central Government:

Provided further that the Central Government shall seek the recommendations of the Authority in respect

of matters specified in sub-clauses (i) and (ii) of clause (a) of this sub-section in respect of new license to

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be issued to a service provider and the Authority shall forward its recommendations within a period of

sixty days from the date on which that Government sought the recommendations:

Provided also that the Authority may request the Central Government to furnish such information or

documents as may be necessary for the purpose of making recommendations under sub-clauses (i) and

(ii) of clause (a) of this sub-section and that Government shall supply such information within a period of

seven days from receipt of such request:

Provided also that the Central Government may issue a license to a service provider if no

recommendations are received from the Authority within the period of specified in the second provision

or within such period as may be mutually agreed upon between the Central Government and the

Authority. Provided also that if the Central Government has considered that recommendation of the

Authority comes to a prima facie conclusion that such recommendation cannot be accepted or needsmodifications, it shall, refer the recommendations back to the Authority for its reconsideration

BASIC STRUCTURE OF INDIAN TELECOM

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Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

TelecomRegulatoryAuthority of India

TelecomDispute SettlementAppellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 &1800

Wireless Operators

National Long Distance Operators

International Long Distance Operators

CDMA

1800Mhz


Regulator

Licensor

Judiciary





GSM

900 &1800

Wireless Operators



CDMA

1800Mhz


Regulator

Licensor

Judiciary





GSM

900 &1800

Wireless Operators



CDMA

1800Mhz

ABOUT AIRCEL

Aircel is India’s fifth largest and fastest growing GSM mobile service provider with a subscriber base of

65.1 million. Aircel is a pan India operator with a presence across 23 circles. The company offers voice

& data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband Wireless

Access (BWA), Long Term Evolution (LTE) to Value-Added-Services (VAS). In addition to providing

premium internet access solutions to facilitate data intensive live streaming applications, the company hasalso paved the way to be amongst the first to offer 3G and 4G LTE services to customers.

Aircel successfully bid for 3G licenses/ spectrum in 13 states, (Andhra Pradesh, Karnataka, Tamil Nadu,

Kolkata, Kerala, Punjab, Uttar Pradesh (East), West Bengal, Jammu & Kashmir, Bihar, Orissa, Assam

and North East), with BWA licenses/ spectrum also obtained in 8 of these states. Aircel’s 3G rollout has

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been the fastest roll out ever in the Indian Telecom Space. Aircel is optimistic about the data bundling in

its key markets. Tamil Nadu, being the strongest circle with spectrum in 900MHz, 3G and BWA and in

incumbent circles where the company is strong in voice, will now starts adding data bundles.

In 2006, Aircel was acquired by Malaysia’s biggest integrated communications service provider

Maxis (Maxis Communication Berhard) and is a joint venture with Sindya Securities & Investments Pvt

Ltd - Maxis holds 74% equity in the company.

Aircel has positioned itself as a data led telecom player with a focus on young Indians and has addressed

the multi-functionality of a mobile phone in many innovative ways which are Industry firsts, be it the

Aircel Pocket Internet, the first social networking mobile INQ on Aircel, Aircel Apollo Mobile Health

Care, Blyk on Aircel, an enriching engagement for the Youth and very recently the first telecom player to

introduce Facebook Voice Updates on Aircel.

The vision of preparing for the future has led to Aircel being recognized as the leading player in

providing overall mobile satisfaction as well as the leading regional mobile operator by institutions such

as Voice and Data, IDC and tele.net.

Aircel was also adjudged the “Best Employers” by Aon Hewitt in 2011. The company’s continuous

focus is on acquiring, nurturing and retaining highly talented people by providing them with an inclusive

and dynamic working environment. It has also set up the Aircel Academy, a 25,000 square foot facility in

Gurgaon (HQ) to provide learning and specialized development for employees.

Being a caring and responsible corporate, Aircel is involved in initiatives like ‘Save Our Tigers’, an

effort to save and grow the dwindling population of tigers in India. The ‘ Save Our Tigers’ campaign

made India wake up to the alarming fact that there were only 1411 tigers left in India through its 360

degree awareness program. Another initiative by Aircel is the a+, initiative which aims to bridge the

digital divide. ‘Through ‘Aircel a+’; Aircel provides underprivileged youth from rural areas access to

computers and internet for educational and developmental purposes.

About Maxis Communications Berhad

Maxis Communications Berhad, which started operations in the year 1995, is Malaysia's biggest

integrated communications service provider Maxis' vision is to bring the future to our customers’ lives

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and business, in a manner that is simple, personalized and enriching, by efficiently and creatively

harnessing leading-edge technology and delivering a brand of service experience that is reliable and

enchanting.

MISSION STATEMENT

We are conditionally committed to exceeding our customer’s expectations. we will provide

network and services that are innovative and reliable, allowing our customers any time

anywhere communications. we will attract, develop and retain an exceptional team of

people. We are committed to enhancing the quality of real life in the community in which

we operate. We will meet the financial expectation of our shareholders.

OUR GOALS AND VALUES

CUSTOMERS: Our customers are our most valued assets. we will strive to exceed their

expectations at all time by providing them with superior services that embody value,

innovation, quality and care.

PEOPLE: Our people are our greatest resources. we will attract, train and retain the best. We

will challenge them to develop their full potential in the context of our company goals.

INTEGRITY: We will maintain and strive for the highest levels of personal and professional

integrity and honesty in all ours dealings. We will keep our promises.

RESPECT: We will treat with respect & dignity all people we deal with.

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EXCELLENCE: We are committed to excellence in all what we do.there will be no place for

mediocrity.

WORK : We will promote a work environment that embraces creativity, promotes

empowerment, encourages team work, innovation, prudent risk taking, honest and open

communication and respectful iconoclasm

QUALITY: The hallmark of our internal and external outputs and processes will be quality.

This will pervade every aspect of our functioning

PAN NDIA AIRCEL SUBSCRIBER BASECity/Circle Operators Sep-12 Oct-12 Nov-12 Dec-12

Chennai Aircel Ltd 3,750,096 3,799,070 3,796,286 3,775,087

Tamil Nadu Aircel Ltd 18,485,056 18,329,468 18,013,128 17,950,019

West Bengal Aircel Ltd 3,042,615 3,034,947 3,005,655 2,982,409

Assam Aircel Ltd 3,778,274 3,737,826 3,563,371 3,542,284

Orissa Aircel Ltd 2,894,773 2,954,938 2,843,791 2,791,997

North East Aircel Ltd 2,495,094 2,477,056 2,405,808 2,334,209

Jammu & Kashmir Aircel Ltd 1,770,577 1,777,157 1,776,797 1,786,423

Bihar Aircel Ltd 5,288,139 5,214,000 5,031,269 4,981,643

Himachal Pradesh Aircel Ltd 720,753 754,223 734,795 714,277

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Kolkata Aircel Ltd 1,884,904 1,881,370 1,860,293 1,858,443

Karnataka Aircel Ltd 1,485,942 1,601,263 1,584,102 1,544,826

Kerala Aircel Ltd 1,777,913 1,772,550 1,712,652 1,522,927

Andhra Pradesh Aircel Ltd 1,975,021 2,016,909 1,995,571 1,871,685

Delhi Aircel Ltd 2,928,704 2,990,952 3,030,567 2,951,145

Uttar Pradesh (W) Aircel Ltd 2,153,133 2,163,350 2,053,103 1,509,375

Uttar Pradesh (E) Aircel Ltd 3,398,510 3,488,852 3,547,674 3,589,906

Mumbai Aircel Ltd 1,413,290 1,467,470 1,457,676 1,391,669

Maharashtra Aircel Ltd 1,191,470 1,169,434 1,120,821 1,116,017

Madhya Pradesh Aircel Ltd 986,875 916,383 842,531 680,866

Haryana Aircel Ltd 652,062 633,810 575,652 427,498

Gujarat Aircel Ltd 791,597 769,854 651,645 338,457

Punjab Aircel Ltd 1,117,329 1,112,643 1,022,278 973,252

Rajasthan Aircel Ltd 2,625,234 2,722,770 2,697,852 2,712,870

Total 6,607,361 66,786,295 65,323,317 63,347,284

AIRCEL MARKET SHARE IN MAHARASHTRA & GOA

Organisation Structure

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Aircel Market Share in M & G

Operator

TotalSubscriber

Marketshare

Rank

Active %Active

SubscribersActive market

share

Aircel 1,2,42,907 12.3 5 63.8% 522,270 5

Product Offerings (keeps on changing from time to time) :

• New Subscribers: New Subscribers will need to buy a starter pack of Rs.25 and recharge with

Rs.149 to avail lifetime.

• Existing Aircel Subscribers: Existing Aircel Prepaid Subscribers can recharge with min of Rs.10

and 1. However existing Aircel lifetime subscribers will get the tariff benefit automatically.

Tariff highlights (keeps on changing from time to time) :

• Local calls – Re1/minute

•

STD Calls – Rs 2.74/minute.

Aircel gives services to its customers in 4 forms:

POCKET BUDDIES

Recharge

Vouchers OFFER Validity

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23

Unlimited Data + A2O (L+N)@ 10 Paisa &

A2A free till 100 per day capping(After 100 sms charged @ 50 Paisa/sms)

3 days

71

Unlimited Data + A2O (L+N)@ 10 Paisa &A2A free till 100 per day capping

(After 100 sms charged @ 50 Paisa/sms)

15 days

129

Unlimited Data + A2O (L+N)@ 10 Paisa &

A2A free till 100 per day capping

(After 100 sms charged @ 50 Paisa/sms)

30 days

START UP KITS- PLANS

First Recharge Denominations

1st Recharge

MRP Rs (A)2 4 27 33 52 55 64 97 101

2nd Recharge

MRP Rs (B) NA NA NA 30 10 NA 10 NA NA

Total First

Recharge Rs(A+B)

2 4 27 63 62 55 74 97 101

TalkValue (Rs) 0 0 10 60 30 0 30 0 30

Validity Period Lifetime Lifetime 365 Lifetime Lifetime Lifetime Lifetime Lifetime 365

Other Benefits

Free

Minutes/Secs NA

Night Aircel

to Aircel

Calling at

2p/Min

NA NA

6000

Local

/National

Secs

NA

400 Local

/NationalSecs

NA

Free Data (Mb) NA 750 Mb NA NA 500 Mb NA 100 Mb NA500 MB/month for

2 months

Free SMS NA NA NA NA NA NA NA

1st SMS @ 1 Re,

post All sms @ 10

Paisa/SMS upto

100 SMS

Free Talktime NA NA NA

1) Rs 30 per

month every

month for 4months.

2)

Fulltalktime

on RC 30 &

RC 50 for 6

months.

Full Talktime

on RC 30 &

RC 50 for 3

months

NA NA NA NA

TOPUPS

MRP (Rs) Talk time (Rs)

10 7.9

30 30

50 50

60 60

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100 100

786** 786

**786 Talktime + 2 Local A2A sms for 1 day

BIG TOPUPMRP (Rs.) Talkvalue (Rs.)

110 120

200 230

300 350

500 575

1000 1150

LOCAL STD ISD

Aircel mobile Other mobile Landline Aircel mobile Other mobile Landline ISD

10% 40% 5% 5% 37% 2% 1%

• The call duration is measured with accuracy up to +/- 1 second as per TRAI Regulations.

• Call charges are calculated based on the call units which are calculated by dividing call duration

by the pulse rate defined in the Tariff Plan.

RATE CUTTERS

Aircel to Aircel Packs

MRP BenefitsUSSD_Activation

StringValidity Days

4ww

A2A Day Calls @ 5p/Min, A2A Night Calls@ 2p/Min(9:00 PM to 7:00 AM),1st SMS will

be charged @Re.1 & after that A2A (L+N) @

1p& A2O (L+N) @10P

NA 180

77ω

Unlimited Free Aircel to Aircel Calls & SMS

to 2 Local Aircel nos, other Local & STD

calls@50p/min

*122*7700# 30

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99Unlimited Free Aircel to Aircel Calls across

Mumbai, Maharashtra & Goa30

Local Pack

12 All local calls at 1.2p/2sec or 30p/min *122*1200# 3022 All local calls at 1.2p/2sec or 30p/min *122*2200# 90

STD Pack

37## STD @ 25p/Min *122*3700# 30

46 115 STD Min *122*4600# 15

ISD Pack

7

US/Canada/China/UK (Fixed line) @

90p/min Nepal @ Rs 5/min Gulf (UAE,

Saudi, Kuwait, Bahrain, Yemen, Qatar)

@ Rs 7.00/min

*122*7010# 3

18

Nepal 5.1,UAE 7,Saudi Arabia ( F )

3.99,Saudi Arabia ( M ) 5.5,USA

0.4,Bangladesh 1.8,Malaysia 1.8,Canada

0.4 Singapore 1.1,UK F 0.4,SRI LANKA

5,Pakistan 6,Kuwait 5.5, All in Rs /Min

*122*1800# 30

40All STD / Local and ISD calls to

US/Canada @ 40p/Min*122*4000# 30

COMBO pack

10 25 Local + National Minutes *122*10# 3

35 60,000 A2A seconds *122*3500# 30

97 400 Local Minutes NA 30

125 350 Local + National Minutes NA 30

198 900 Local Minutes NA 30

501 1300 Local + National Minutes NA 30

FTT pack

MRP (Rs) Talk time (Rs)30 30

50 50

60 60

100 100

786 786

110 120

150 170

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200 230

300 350

500 575

1000 1150

SMS pack

Card Price

(Rs.)Free SMS Upto USSD_Activation String Validity

1A2A(L+N) @ 5p/SMS & A2O

(L+N) @15p/SMS*122*01# 1 Day

950 (L+N) sms A2A & 50 (L+N)

sms A2O*122*900# 30 Days

19150 (L+N) sms A2A & 100 (L+N)

sms A2O*122*2000# 30 Days

38 300 (L+N) sms A2A & 200 (L+N)sms A2O

*122*3800# 30 Days

61

A2O (L+N)@ 10 Paisa & A2A free

till 100 per day capping (After 100

sms charged @ 50 Paisa/sms)

*122*6100# 61 Days

** 45p will deducted with the first call or the first SMS of the day, whichever happens first.

##STD @ 25p/min for first 250 STD Minutes, thereafter 60p/min for 30 days

℗ ( Rs. 7 one time charge per number Addition /Change). Other sms as per base tariff.

WW Night Tariff start s from 9:00 PM to 7:00 AM. First mins of the day will be charged at Rs 1.

All the rate cutter are on Auto-Renewal model.

Note:

- Rates will be charged as per the plan , i.e, Per Sec or Per Minute.

- These Rate-cutters are applicable on all plans except trade/channel

- All Rate Cutters are on Auto Renewal platform. Call 121 for more information.

List of Select Islands ISD Code

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Cuba 53

Sao Tome and Principe 239

Guinea Bissau 245

Diego Garcia 246

Nauru 674

Solomon Island 677Vanuatu 678

Cook Island 682

Tuvalu 688

Tokelau Island 690

Norfolk Islands 6723

Sakhalin 74242

AIRCEL ISD CARD

Introducing ISD calls at local rates.

News, gossip, jokes, wishes, secrets...Say it all, and more, with the new Aircel ISD Cards.

Now, US, UK and Canada are just a local call away!

Keep in touch with friends and family at just 40p/min with the Rs.40 ISD card.

Aircel ISD Card | Rs.40

Call US, Canada and UK(F)* at 40p/min

Call local and STD at 40p/min With the Rs.18 ISD card, call USA, UAE, Singapore, Malaysia and

many more countries at lowest rates.See the list of countries below to find out the discounts.

Aircel ISD Card | Rs.18

Calls UAE, Singapore, Saudi Arabia, Malaysia, USA and many more countries at discounted rates.

Tariffs for Rs.18 ISD Card

Discounted rates are available for the countries listed below.

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DestinationCurrent MRP

(Rs./min)

Customer Offer(New)

(Rs./min)Discount

Nepal 9.19 5.10 45%

UAE 9.19 7.00 24%

Saudi Arabia(F) 9.19 3.99 57%

Saudi Arabia(M) 9.19 5.50 40%

USA 6.40 0.40 94%

Bangladesh 9.19 1.80 80%

Malaysia 6.40 1.80 72%

Canada 6.40 0.40 94%

Singapore 6.40 1.10 83%

UK(F) 6.40 0.40 94%

Sri Lanka 9.19 5.00 46%

Pakistan 9.19 6.00 35%

Kuwait 9.19 5.50 40%

*This limited-period offer is available to all Aircel customers. Need help? Just call 121.

OBEJECTIVE AND METHODOLOGY OF THE PROJECT STUDY

1. To Understand and analyze the Warehouse Management of the Organization

• Warehouse Function

•

Warehouse Options Selection Layout Design• Warehouse Costing

• Material handling Processes

• Inventory Functions Cost & Controls

2. TO understand & Analyze the Outbound Logistic Management

• Role of logistic in Distribution Channel

• Distribution Channel Structure

•

Logistic Support to the Distribution Channel.

RESEARCH METHODOLOGY

Research was more of evocative research and is the moral fiber of the project. In order to bring the

objective of the project It was important to eloquent the approach in which it is to be conducted i.e the

research practice was to be carried out in a certain framework, Purpose of the research are to rummage

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around for acquaintance Also research defines a systematic and organized search for applicable

information on a particular topic, The data was composed to attain aforementioned objective This data

was collected as:-

PRIMARY DATA:The Warehouse Management and logistic policies, Strategies and their affectivity was analyzed through

in-depth personal interviews with the concern Department heads, Significance of this analysis was study

of different Parameters of Sales and distribution and their Merit and Demerits with a view to ascertain

the efficacy of the process in Place and to in earth grey areas for improvement and to make suggestion for

them.

SECONDARY DATA:

The Secondary Data consists of information that consists of live examples of day to day activities of

Warehouse, Sales forecast, Existing Stock, Monthly Consumption, Required Stock, Min Stock, Slow

Moving, Fast Moving Stock, Dead Stock, New Products Introduction etc.

SAMPLE SIZE:

The Sample Size is totally taken from the Survey of Aircel Pune Warehouse and SAP MM reports

BACKGROUND

Competition in the new millennium is across Supply Chain, not individual companies. He central aim of

any business is to have the right product in the right quantities, at the right place, at the right time at the

minimum cost. This is in turn translated into the interrelated issues of customer satisfaction, Inventory

management and flexibility. Customer satisfaction to a high degree is dependent on the flexibility of the

supply chain. This means that its ability to respond to changes in demand, Other Telecom Service

Providers in Maharashtra & Goa like Idea, Airtel, Vodafone, Reliance Communication, TATA Docomo,

Uninor, and etc. have alos introduced Same Practice to meet the challenge of the heightened competition.

The concept of SCM involves the application of State of the art IT tools such as MS Office, Internet,

Intranet, ERP (SAP Applications) that greatly help organization to simultaneously improve customer

service and reduce inventories across the chain, The Warehouse Management System works

collaboratively with customers, suppliers, trading partners and Third Parties to change the way operations

are viewed, Performed & Measured. As today’s Companies focus on gaining economics and competitive

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advantage throughout the entire product life cycle this can be best achieved through leveraging of

effective SCM across the entire enterprise. Against this background this project was implemented for the

benefits of the organization, with a view to help the organization to improve their productivity and

competitive performance in the emerging market through the effect application of Warehouse & Logistic

Management principles and practice.

SUPPLY CHAIN MANAGEMENT

The concept of Supply Chain Management is based on two core ideas. The first is that practically every

product that reaches an end user represents the cumulative effort of multiple organizations. These

organizations are referred to collectively as the supply chain.

The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less

managed, the entire chain of activities that ultimately delivered products to the final customer. The result

was disjointed and often ineffective supply chains.

Supply chain management, then, is the active management of supply chain activities to maximize

customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the

supply chain firms to develop and run supply chains in the most effective & efficient ways possible.

Supply chain activities cover everything from product development, sourcing, production, and logistics,

as well as the information systems needed to coordinate these activities.

The organizations that make up the supply chain are “linked” together through physical flows and

information flows. Physical flows involve the transformation, movement, and storage of goods and

materials. They are the most visible piece of the supply chain. But just as important are information

flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and

to control the day-to-day flow of goods and material up and down the supply chain.

SUPPLY CHAIN DECISIONS

Supply Chain Management decisions have rendered significant concern in recent years for a number of

reasons. Directors in many manufactures now realize that activities taken by one member of the supply

chain can determine the profitability of all others in the chain. Many international commercial enterprise

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researchers are of the belief that expanded globalization of markets and increasing international

competition mean that firms in all nations will face like, if not identical, competitive environments. Many

manufacturing companies are forced to improve the quality of their Chain Management decisions,

products and reduce their manufacturing costs.

The main target of Supply Chain Management decisions is 'Customer Satisfaction or values' and to

accomplish this, all barricades are eliminated between ultimate customer values and the raw material

supplier.

Research in Supply chain management decisions has identified twelve distinct management areas that are

affiliated with the subject. Each area comprises a supply chain issue facing the firm.

The categories are:

Warehouse Location℗

Transportation and logistics℗

Outsourcing and logistics alliances℗

Sourcing and supplier management℗

Marketing and channel restructuring℗

Inventory and forecasting℗

Reverse logistics and green issues℗

Product design and new product introduction℗

Information and electronic mediated environment℗

Metrics and incentives℗

Global issues℗

Customer Value is the satisfaction of customer requirements at the lowest total cost of acquisition,

ownership, and use. It's achieved when demands are met fully, reliably, and cost effectively. In today's

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economic system of dynamic technical, financial, and competitive change, ensuring Customer Value

demands impact the most timely and flexible Supply Chain Management decisions.

NEED FOR SCM

If the last 10 years have taught us anything, it's that personal connection and communication are here to

stay. While many social scientists posited theories that technological devices and the internet would

eventually alienate people from one another, the exact opposite has come to pass. Each new technology-

from cell phones to social networking-has sought to bring us closer together and communicate with our

neighbour, our friend, or our business associate more effectively. Word travels at the speed of a mouse

click and if you are not ready for it, your competition will be.

This increased communication speed has highlighted the need for supply chain management systems

more than ever before. There was a time when supply chain improvements were focused on predicting

consumer demand and lowering operational costs. Nowadays, it is so much more than that. Today's chain

management systems have been proven to increase a company's visibility across their supply chain

network, helping senior decision-makers come to more informed decisions and react much more quickly

to changes in the marketplace.

Supply chain technology plays a huge role in keeping an eye on production, cost, and delivery. These

software systems create a network of collected data, organizing scattered parts into a cohesive whole.

Once your various vendors and internal departments connect, your customers and your bottom line will

reap the benefits.

It is important to organize your software solutions so that you are collecting data from all areas of your

chain. Warehouse management systems help keep an eye on inventory, communication software will

help you stay up to date on important milestones, and business intelligence software can help with the

organization of data. However, the most important factor in supply chain management is how all these

informational layers are linked so the results are readable, accessible, and actionable as soon as they are

compiled.

Not only does supply chain management help increase your overall efficiency, it helps you identify gaps

and issues within your supply chain. Without data collection at all levels, your decision-makers won't

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know where problems lie and opportunities exist. This will eventually lead to a mismanagement of

resources that your company cannot afford.

Today's technology has made organizing scattered information simpler than ever. Connecting your

business across a network, constantly collecting the info and reducing that info into actionable reporting

should be equal parts of your 21st century chain. Only then can you move at the speed of today's business

leaders.

SUPPLY CHAIN MANAGEMENT PROBLEM

Companies increasingly are becoming aware that their opportunity to having a competitive edge in business can

come through supply chain. In the case of companies operating on global scale, supply chain strategies drive

operational efficiencies and affect the bottom line. Unlike technology or other core areas affecting business,

Supply chain is always in a dynamic mode. Project managers who head supply chain projects are often faced with

lot of challenges and issues to over come all through the project. In this topic we air to discuss a few practical

problems and road blocks faced in implementing and operations of Global supply chain projects.

PROJECT SCALE & SPAN OF CONTROL

Often projects are rolled out on global scale involving multiple countries and locations with all sites scheduled to

go live around same timelines. The Project managers and sponsors would be located in one country and physically

it becomes impossible for project managers to keep running to all locations and be available to concentrate on all

sites. Yes project teams are formed at regional country level. However if the project planning, design and control

lies with one office or a single person or a team, the

rest of the project teams would become enablers and implementers resulting in the dilution of energy and focus.

The core project team resources cannot spread themselves thin to attend to all sites and hence the biggest or the

most important locations get attention while the others suffer due to lack of focus.

Supply chain projects involve technology implementation including infrastructure and software. They also involve

multiple logistical modules involving transportation, international freight and warehousing etc.

Span of control over project implementation is very important in case of logistics projects involving multiple

channels and external and internal agencies. Project managers at best can concentrate on rolling out the project in

one country depending upon the number of sites and the logistical components involved.

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If the project involves setting up a distribution center or warehouse, all the more reasons that the roll out should be

limited to country level.

TECHNOLOGY

Adoption of right technology and implementation often faces roadblocks in implementing global supply chain

projects. Projects roll out common processes to be followed across all countries and locations and involve use of

technology to drive the processes.

Many issues concerning technology are faced in a project:

TECHNOLOGY SOLUTIONS

Most multi national companies find that their supply chain operations across the world are managed not on one

application or a set of applications, but each location and country would have implemented either legacy systems

or stand alone systems to manage individual local logistics activities. Once implemented, it becomes difficult to

isolate such applications and shift them to one common platform without which common processes and

standardization cannot be driven across locations.

Secondly any software solution would require to be customized to suit local site and country requirements. One

solution does not fit all. While the solution may work in one country with bigger volumes and size of supply chain

network and warehouses, the same software may not be suitable to be implemented in a small country with one

location.

Cost of Technology Absorption then becomes an issue. When a project proposes to introduce a system across all

countries in the supply chain network to bring about seamless integration and common processes, it fails to account

for the cost of technology and capability of all countries and locations to absorb the cost. The costs of IT

implementation are exorbitant. A bigger site and country may be able to pay for the IT cost but if the same cost is

expected to be paid out of another country which has lesser volumes, it may not be able to absorb the cost, unless

the global project management is able to absorb the costs into the project cost or get corporate management to

absorb the cost and take it off from the user country’s budget.

COST OF TECHNOLOGY ABSORPTION

Implementation of technology calls for the IT teams to travel to all locations, implement the setup. Train the people

and stabilize the sites post Go Live. The cost of implementation can run high. Again all countries may not be able

to bear the cost of such implementation.

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AVAILABILITY OF TECHNOLOGY INFRASTRUCTURE

Technology infrastructure availability is different amongst countries and within the country. Internet connectivity

and bandwidth may not be the same cross all locations which can hinder implementation of an internet based

technology application. Normally if the project is driven at a global level, the local infrastructure issues of many

countries do not figure while considering the suitability of IT platform for implementation.

INTERNAL & EXTERNAL RESOURCE CAPABILITY

Supply chain projects involve multiple locations and cross functional departments and teams within the

organization. Besides they also include multiple external agencies who manage the logistics.

Driving projects through various country managements requires enormous internal selling to be done. The projects

also call for external selling with the service providers. Local country managements as well as the service provider

country managements may or may not have the same interest and commitment to the project as much as the global

project leadership would have. These are soft challenges faced by Project Managers, to be able to sell the idea and

get commitment from all stake holders.

The availability of quality resources both internally and externally in all locations is critical to the implementation

of the project and is often a challenge which can hold up implementations and training.

WAREHOUSING FUNCTIONS AND OBJECTIVES

A warehouse act as supporting functions for logistic and Plays a key role in attaining the overall objective

of the firm logistical supply chain system. In today’s context a warehouse is used as a switching facility

rather than the long term storage house. The attention is paid to higher inventory turnover lower

operating cost and shorter cycle times. The performance of the warehouse is judged by its Productivity &

Cost Performance, to achieve two polemic goals of customer satisfaction and maximum space utilization

and increased material flow by automation to achieve productivity gains and cost reduction to fit into the

overall objective of the supply chain.

One of the most important steps in the selection of a logistic network is deciding on a centralised &

decentralised warehouse system, The Pune Wagholi Warehouse act as the Mother warehouse a

distribution house which helped to ensure tight control on inventories and operated on economies of scale

resulting in lower operating cost. There are 3 more location across Maharashtra & GOA where the

decentralised Warehouse are operated to ensure the best service to the distributor channel partners.

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WAREHOUSE LOCATION

The warehouse location was set outside the Octroi Zone since the product are the Paper Vouchers whose

denomination are based on the MRP printed on the it. The location was few km away from Octroi Zone

which did not affected the transportation Cost of either the Supplying Vendor or the Organisation.

WAREHOUSE LAYOUT

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The basic warehousing Management is done by the 3 rd Party Logistic, Appointed by Aircel who manages

the end to end activity of warehouse

The Major Warehouse functions followed by 3rd party on behalf of Aircel Ltd are as follows.

1. Receiving of Materials

2. Verifying the Physical Material as specification on Purchase Order and its Qty.

3. Inward of Material in Register & Process the GRN in SAP

4. Identification and Sorting of Material

5. Dispatching and Placing in storage;

6. Retrieval from Storage in FIFO method;

7. Order Accumulation;8. Packing of SUK;

9. Sales Order Processing

10.Record keeping.

11. Report Floating etc

In designing warehousing systems it is desirable to maximize.

1. space utilization;2. equipment utilization;

3. labor utilization;

4. accessibility of all materials;

5. Protection of all materials

The agency has appointed executives who execute the job and report the commercial logistic manager at

Pune. Total Manpower 5 including the WH in charge. There are 10 Labours who are outsourced and are

called on daily wage for packaging of SUK material.

WAREHOUSE COSTING The following are the Fixed Cost which are Paid by the organisation on monthly basis

• Warehouse Rent : The rent paid for WH is Rs. 10 Per sft which comes to 50000 Per

month

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• Warehouse management Fees: Rs. 112000/- Per month

• Electricity charges : Approx 4500/- per month

• Diesel for DGset: 1000 Per month

• Security Charges 3 security 8 hrs each are paid at 9000/- per month i.e 27000/-

INVENTORY CONTROL

Inventory control means to monitor the stock of goods used for production, distribution and captive (self)

consumption. For a specific time period, stock of goods are placed at some particular location. Stock of

goods includes raw-materials, work in progress, finished goods, packaging, spares, components,

consumable items, etc. Inventory Control means maintaining the inventory at a desired level. The

desired-level keeps on fluctuating as per the demand and supply of goods.

Following important points of inventory control:

1. Inventory Control mainly focuses on location, storage, recording the quantity, and accounting for

the amount of inventories.

2. It helps to supply inventories to different departments or units whenever demand requisition is

raised. Mostly, it supplies inventories to the production department.

3. It keeps a record of inventory issued to the concerned department located at a specific place.

4. It provides prompt and proper service to all concerned departments or units.

5. It also helps to maintain inventories at lowest costs.

6. It bifurcates high-value and low-value stock of goods.

7. It also avoids over-stocking and under-stocking of raw-materials.

FINDING & ANALYSIS

MODERN INVENTORY CONTROL TECHNIQUES USED BY AIRCEL

In dept Monitoring in regard with the Inventory control is done in the organisation a

maximum of 60 days for fast moving stock is allowed for Inventory and minimum 30 days

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of Stock is maintained at warehouse the following format of Stock report is floated to the

commercial Head to keep a proper track of material Stock & to avoid Out of Stock scenario.

Daily dash Board is shared with corporate to ensure that there is no Over stocking or Stock

out position

Monthly Sales Order received & Dispatches done are tracked to get a proper picture of

Sales & Distribution and get a average transportation cost spend on per order.

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Monthly Overall Warehouse Activity snap shot

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Inventory Aging Analysis to ensure that the FIFO process on outward is followed

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CONCLUSION

A PERFORMANCE ISSUE

A poor-performing operation is prone to shortages and damages, customer service failures, high costs,

and inferior productivity. It is often the result of inertia – once in place, operations and processes do not

get examined or changed, even when requirements and conditions have changed drastically. Warehouse

management may not be one of the company’s core competencies, but it usually is a critical part of being

a capable competitor that delivers what they promised, on time, to their customers. It is often difficult to

optimize, or even to improve a warehouse operation and reduce its cost. Many companies have neither

the available staff nor the expertise to embark on a continuous improvement program. They do not know,

and cannot implement, the best-practice policies, procedures, and technology to achieve significant

improvements within their distribution operations. If significant capital contributions are necessary to

actualize these improvements, this becomes a further barrier to implementation. It is particularly difficult

for smaller companies to grow and scale their businesses.

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THREE-PART SOLUTION TO ACHIEVE PERFORMANCE IMPROVEMENT

In order to realize performance in the existing distribution operations, the organisation must follow a

prescribed and disciplined course of-action. Aircel has to developed a solution that implements results

by employing a highly-structured methodology that begins with a Performance Evaluation of existing

people, processes, and systems. The Performance Evaluation identifies opportunities and potential

improvements in every aspect of warehouse operations (performance, productivity, service, quality, and

systems). It quickly defines the business scenario and financial opportunity. Delivering value is much

more than simply identifying savings! The evaluation has two deliverables: a preliminary economic

analysis and an implementation strategy. The strategy itself has three major components that are

implemented concurrently:

• An Organization Development plan to improve workforce quality and productivity (People)

• A best-practice Process and Systems Implementation plan to increase accuracy and reduce waste

• A Key Performance Indicator (Metrics) definition to measure process improvement and

effectiveness

The strategy’s key objective is to improve performance and increase productivity – and to deliver a

proven, sustainable ROI.

PEOPLE

Establishing the proper organizational culture in the warehouse has the greatest impact on savings

potential. Labor represents approximately two-thirds of the total cost of operating the warehouse, yet it is

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the component that is most frequently ignored! Changing organizational culture is much more difficult

than changing processes or systems. It is also more complex than simply implementing a system (e.g.,

Labor Management or Engineered Labor Standards) to control work plans and tasks. It requires

measuring and modifying behavior, training on new ways of working, implementing incentive systems to

influence behavior, and improving communication between all levels of the organization. The

organization must be assessed at all levels and a performance-based culture established. A performance-

based culture motivates employees to improve productivity and resolve issues. The result is not just

increased efficiency, but lower staff turnover as well. The benefits are immediate and sustainable.

In addition to conducting regular assessments at all levels of the organization, action plans must be

developed that define expectations, ways of working, accountability, and metrics. It is imperative to

promote regular leadership and team meetings that intensely-communicate issues, performance-to-plan,

and imperatives. Training for new skill sets, leadership development, internal coaching and mentoring,

and the purposeful involvement of hourly associates are all critical success factors. Incentive plans must

align closely with the organization’s core mission and the behaviors it desires. Monitoring KPIs and

rewarding behavior appropriately converts performance to profitability. The performance-based culture

sets the atmosphere for the operation. Employees are motivated and enjoy their work. Managers find an

attentive, inspired staff is easier to manage, more productive, and more eager to improve a company’s

operations. Investing in people and depending on them to perform and innovate improves service and

reduces costs!

PROCESSES AND SYSTEMS

Improving processes and systems is more objective than Organization Development. Implementing new

processes involves changing ways of working to a predefined best practice methodology. Implementing

new systems provides new control and productivity mechanisms that enable and manage the processes.

The process and systems solution may be different for each operation served. A piece-pick operation

needs different solutions than a case- or pallet-pick operation; a parts operation has different requirements

than a flow-through operation. The key is to implement a continuous improvement process to sustain and

increase savings. Initiatives are identified and prioritized during the evaluation; quick wins are chosen

first – those that maximize productivity and savings with the minimum expenditure and implementation

time. Often, the first initiatives involve reducing wasted motion, travel distance and time, and

unnecessary vertical movement, and relocating high-velocity items (Slotting and establishing “Golden

Zone” pick areas). Later initiatives that require capital expenditures may include implementing optimum

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racking, material handling equipment, and sortation systems. Once performance-oriented culture is

inculcated, systems that maximize worker productivity can be implemented, e.g., task interleaving,

engineered labor standards, and pay-for-performance.

METRICSIf organisation wants change to endure, it must determine the key metrics that determine success, then

continuously monitor those metrics to ensure performance-to-plan remains in tolerance. Organisation

measure to improve and the metrics represent the capstone that allows them to precisely determine the

success and the quality of your implementation During the Performance Evaluation, each facility

establishes a multitude of KPIs to be monitored to ensure they are driving the desired performance. These

may include: customer satisfaction, budget compliance, productivity, cost improvement / reduction,

service, quality/damage, accuracy, process improvement, and safety. Most frequently, a single key metric

is chosen that most represents the success of the program. This is normally a productivity measure, such

as cost/line or productivity/unit time, depicted in the examples below. As is shown, it is important to keep

both Facility and Corporate scorecards for accountability over time. In addition to reporting performance-

to-plan, key metrics can also become the basis for incentive-based compensation. It’s all about

continuously improving People, Processes, and Systems – and measuring every key attribute in those

categories to ensure success.

Abbrivations1. GSM: Global System for Mobile Operations2. SIM: Subscriber Identification Module3. RCV: Paper Recharge Vouchers4. WH: Warehouse5. DCP: Distribution Channel Partner6. APP: Aircel Preferred Partnetrs7. ROI: Return on Investments8. KPI: Key Performance Indicator

BIBLIOGRAPHY

I. www.aircel.com/AircelWar/appmanager/aircel/maharashtra

II. http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

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http://www.aircel.com/AircelWar/appmanager/aircel/maharashtra

http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management



http://www.aircel.com/AircelWar/appmanager/aircel/maharashtra




III. http://www.psiplanner.com/supply-chain-values.html

IV. http://www.psiplanner.com/supply-chain-values.html

V. http://EzineArticles.com/3361297

Reference Book Logistics Management 3rd Edition (Author V.V. Sople)

VI. Chapter 4 Warehousing Role beyond storage

VII. Logistic at the centre of World Trade

http://www.psiplanner.com/supply-chain-values.htmlv

http://ezinearticles.com/3361297

http://www.psiplanner.com/supply-chain-values.htmlv

http://ezinearticles.com/3361297

live project on wh

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