Improving Warehouse Operations And

Efficiency

An Internship report submitted in partial fulfilment of requirements for

Bachelor of Business Administration (Logistics Management)
September 2023

Under the Guidance of

Internal Mentor Industry Mentor

Dr Saurabh Tiwari Mr Sujeet Singh
Associate Professor, SOB Dehradun North Manager

Submitted by
Name- Manu Dabral
SAP ID- 500096566
Enrollment No- R380221015
BBA: Logistics Management
2021-24

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 Student Declaration

I hereby declare that this submission is my own work and that, to the best of my knowledge
and belief, it contains no material previously published or written by another person nor
material which has been accepted for the award of any other degree or diploma of the
university or other institute of higher learning, except where due acknowledgment has been
made in the text.

Manu Dabral
SAP ID: 500096566
Enrollment No: R380221015
Course: BBA-Logistics Management (5th Semester, 3rd Year)
School of Business, UPES

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 Acknowledgment

I give my thanks to Mr Sachin Haritash, who presented me with this opportunity to complete
my internship at Chetak Logistics. In my two months of on field work at Faridabad, I have
perhaps learned more about the field of logistics than I did with my study material. Sir not
only presented us with this opportunity but continued to push us to set our objectives and
goals, maximizing our learnings during these two months.
I would also extend my thanks to Mr Mukesh Bhargava, my mentor these two months, who
guided and provided invaluable information to me in the field of logistics. He was always
willing and understanding with any troubles I was having, his suggestions and in-depth
knowledge providing clarity whenever I had any doubts.
I also give my thanks to Mr Ashok Kumar, the Branch In charge at Faridabad warehouse,
who helped and assisted me during these two months. I also like to thank the Faridabad staff
who mentored me as to how the on-field operations were conducted at the warehouse,
assisting and guiding me during the document preparation and clearing up any query I had.
A special thanks to Mr Sujeet Singh, who acted as my mentor from the head office, our
constant communication and enquiry regarding what I was doing, updating me on my weekly
activities and clarifying what I had to do for my future weeks during the internship.
I would like to give my final thanks to my faculty mentor, Dr Saurabh Tiwari, who will be
guiding and will be mentor for my final report and presentation of my internship.
Whatever I have learned and done here at Chetak would not have been possible without the
help of the people mentioned above, whose guidance and patience with me was invaluable.
My interest in the field of logistics has continued to grow and I know that the lessons I
learned here will be invaluable to in the future.

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 Faculty Mentors Certificate

This is to certify that the summer internship report entitled “Warehouse Operations”
submitted by Manu Dabral to UPES for partial fulfillment of requirements for Bachelor of
Business Administration (Logistics Management) is a bonafide record of the internship work
carried out by her/him under my (our) supervision and guidance. The content of the report, in
full or parts have not been submitted to any other Institute or University for the award of any
other degree or diploma.

Dr Saurabh Tiwari
Associate Professor
(Department of Transportation Management)
School of Business, UPES

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Internship Certificate

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 Table of Content

[Link] Description Page No.

1. Executive Summary 7
2. Introduction 8-10
3. Literature Review 11
4. Research Methodology 12-34
5. Conclusion 35
6. References 36

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 Executive Summary

This executive summary provides an overview of the internship report focused on the
warehouse operations as well as the first and last mile operations of Chetak Logistics
Warehouse situated in Faridabad. The project provides gives an understanding as to how the
day to day tasks, the key operations and the product movement is executed along with how
the process flow works.
Chetak Logistics is a 3PL company headquartered in Gurugram, having operations all over
India. They provide various services to small, medium and large scale companies, ranging
from warehousing, inventory management as well as transportation in terms of first and last
mile delivery to the customers. The various operations have been touched upon in this report,
with a detailed explanation given as to how their operations work.
The objective of this internship was to understand as to how a logistics company, one which
was started in 1979, works with the changing times, the evolution of technology.
Observations in regard to their inventory management, document preparation, dealing with
the various consumer queries and their management systems were made. On field operations
were also conducted as to how the working by the staff within the warehouse was executed,
the communications and various challenges involved with them.
The report shows a detailed overview as to how the company operates and the management
structure. As a logistics company, the report highlights the inner workings, the decision
making and the implementation involved to operate on a high level. From the receiving of the
consumer order, the dispatch and final delivery along with the inventory and the warehouse
management, the insights have been shared in this report as to understand what can enhance
the workings of the warehouse.
As part of the on field operations for approximately two months, providing assistance in the
warehouse and having a comprehensive understanding of the operations, careful observations
were made in order to have a deeper insight of the workings of a logistics company. Not only
were the observations made during the day, but due to the 24/7 nature of logistics, night
observations and duties were also included in the report.
To conclude, the purpose of this report is to understand how a logistics company, in this case
Chetak Logistics, operates and deals within a dynamic changing environment. It also sheds
light on how the actual, on ground warehouse operations are done, through day and night.
During the internship, the human factors such as the staff, the drivers and the people who
work for the company also were kept in mind, a note being made as to how they could
potentially affect even the smallest aspects of the company.

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 Introduction

Our definition of logistics is simple. Logistics is the flow of material, information, and money
between consumers and suppliers (Frazelle, 2002).
Any company in any sector, at its microscopic level, needs logistics. There is a need of
consumers that must be fulfilled by corporations to earn profit. They create the demand
through the product or service which they offer in the market and thus create a cycle of
supply and demand with the consumer. No matter how small a product or service is, logistics
and in broader view its supply chain is essential for the workings and future profit of the
company.
Logistics is the management of any good, service or cash from point A to point B. In simpler
terms logistics is understood as the transport any material, whether a raw material or a semi-
finished good, from one destination to another. Supply chain on the other hand is a much
larger term. It encompasses all the stages that go into fulfilling the demand of the end
consumer. From the procurement of the raw materials, to the product and then the
transportation, as well as any reverse logistics involved. Logistics comes under the umbrella
of supply chain in this manner.
Even the smallest of corporations have their own supply chain networks, from procurement
of products, to their delivery and after services. Along with supply chain, the other factor or
service which comes into play here is warehousing. Simply put, warehousing is the act of
storing any material, raw or finished, in an enclosed space. A warehouse helps to meet the
demand of a consumer in an area, allowing quick movement and delivery of goods.
Throughout the history of mankind wars have been won and lost through logistics strengths
and capabilities – or the lack of them. It has been argued that the defeat of the British in the
American War of Independence can largely be attributed to logistics failure (Christopher,
2016).
With the subsequent storing and handling of materials, it is important for any company to
conduct these operations in an efficient and cost-effective manner to have a competitive
advantage in the market. These costs significantly impact a company's bottom line and
competitiveness in the market. From labour costs, storage and inventory handling costs to the
transportation and overall order fulfilment, these costs, when not managed efficiently, can
increase exponentially and incur losses to the company.
Logistics, warehousing and inventory management are all interconnected aspects that come
under the supply chain network. The most important component in all of this is the consumer
who needs their demands to be fulfilled, and subsequently it should be done in the right
manner. This is commonly referred to as the 7Rs of Logistics. The 7Rs are as follows-
 Right Place
 Right Price
 Right Time
 Right Quantity
 Right Quality

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  Right Product
 Right Customer
The role of a supply chain is to deliver the right products, in the correct quantity, to the right
customer, at the right place, at the right time, in the right condition, at the right price
(Richards,2011).
Like explained above, the most vital task of any logistics firm or enterprise is to ensure that
they minimize their costs, while providing maximum customer value. Ensuring that their
products are delivered (following the 7Rs rule) and in recent years, making sure there is
minimum wastage involved.

Warehousing

Warehouse Operations deals with the storage, handling and transportation of materials from
one point to another. It is an essential activity in the field of Logistics and Supply Chain. The
aim of warehouse operations is to satisfy the needs of its consumers while effectively
handling the equipment, space and labour available to them. It performs the following
functions:
 Receiving of Goods
 Storing of Inventory
 Fulfilling Customer Orders
 Tracking of materials to their destination
 Effective Storage to utilize the space available to them
 Document Preparation

Primarily a warehouse should be a trans-shipment point where all goods received are
despatched as quickly, effectively and efficiently as possible. The basic processes of
warehouse management remain the same over time. We receive goods into the warehouse,
we process orders, we replenish, we include some value-adding services and then we
despatch the product. Advances in warehousing tend to relate to the increased use of
technology and automation, improved performance measurement and the effective
management of resources. (Richards,2011)

The objective of warehousing is to minimize the cost of labor, space, and equipment in the
warehouse while meeting the cycle time and shipping accuracy requirements of the customer
service policy and the storage capacity requirements of the inventory play (Frazelle, 2002).

Major departments work alongside each other to ensure the customers’ requirements are
fulfilled, on time and in the right condition. Speed, Reliability and Material Condition are the
points for emphasis for any logistics company. The departments that come under Warehouse
Operations are as follows-
 First Mile
 Last Mile
 Inventory Management

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  Billing
 Maintenance

First Mile refers to the first phase of material transportation within logistics. In warehouse
operations, first mile is the point where the material, either through the company or by the
consignor, is transported to the warehouse for further transportation to another branch until its
destination.
It is the overall starting point of the material delivery, where the goods are stored for a short
period in the warehouse until a minimum quantity is fulfilled for further transportation. It is
also dependent on where the material is to be delivered and the transport truck availability
within the company.
Last Mile refers to the final phase of delivery of the goods to their intended destination. The
last phase, it typically deals with delivering the material to the Consignees location. The
material which is transported to the warehouse through first mile, is kept under warehouse
supervision and once the inspection and document verification is completed, is transported to
the receiving party.
The design and operation of first mile and last mile supply chains include a huge number of
problems: facility location, routing, scheduling, design of loading unit building and
packaging processes, budgeting, warehousing, and assignment or queuing (Banyai, Illés and
Banyai, 2018).
Inventory Management, as the name suggests, is the storing and efficient management of the
inventory kept at the warehouse. Inventory can differ depending on the goods available,
which are divided as follows-
 Finished Goods
 Semi-Finished
 Raw Materials
 Perishable
 Non-Perishable

Finished Goods refers to those products which have been assembled and are ready for
consumption and use. An example could be a Car or a motorcycle. Semi-Finished are those
goods whose final assembly is yet to be completed, example a PC part. Raw materials are
goods which are used for the final assemble of the products, nut bolts or screws. Perishable
goods are those which don’t have a fixed expiry date, while non-perishable are the ones that
can expire if not stored under the right conditions.
According to (Frazelle, 2002),the objective of inventory planning and management (IP&M)
is to determine and maintain the lowest inventory levels possible that will meet the customer
service policy requirements stipulated in the customer service policy. The logistics of
inventory planning and management includes
• Forecasting
• Order quantity engineering
• Service level optimization

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• Replenishment planning
• Inventory deployment
Literature Review

[Link] Paper/Book Authors Published Summary

Title in
1 Supply Chain Edward 2002 The book presents
Strategy-The Frazelle simultaneously a
Logistics Of methodology for
Supply Chain planning and managing
Management logistics activities while
illustrating world-class
practices and systems in
use by logistics
organizations around the
globe
2 Smart Tamás 2018, The model presented in
Scheduling: An Bányai,Béla Complexity this work combines the
Integrated First Illés,and Ágota in Industry first mile and last mile
Mile and Last Bányai 4.0 operations of different
Mile Supply Systems package delivery
Approach and companies and shows an
Networks optimization method to
solve the real-time smart
scheduling problem of
open tasks in the
interconnected logistics
network.
3 Warehouse Gwynne 2011 A detailed published
Management- Richards book that describes the
A complete various warehouse
Guide to operations and guides as
improving to improving efficiency
efficiency and and minimizing costs.
minimizing
costs in the
modern
warehouse
4 Logistics and Martin Financial This book provides a
Supply Chain Christopher Times comprehensive overview
Management: Prentice of logistics and supply
Creating Value- Hall, 2016 chain management,
Adding covering concepts,
Networks strategies, and best
practices in warehousing
and distribution.

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 Research Methodology

The following gives a detailed overview of how operations are performed in the warehouse of
Chetak Logistics situated in Faridabad. It provides a detailed process flow on the first mile as
well as the last mile operations and the documents involved in the process. The study was
done on field in the months of June and July.
My internship officially began from the 1 st of June, starting which, I joined the Faridabad
warehouse in Appejay Logistics Park, Near JCB. The warehouse is divided into two
segments, First and Last Mile. The department for First Mile in situated at one end of the
warehouse, while the Last Mile department is located at the other end, both having one dock
each from where the material is loaded onto the trucks. The First Mile department also jointly
shares the space with the billing department, both parties working jointly.
Until this point, I only had the theoretical knowledge of how a warehouse worked and the
materials were stored. In Chetak, I learned more than just storing and transportation of
materials. My first learning was what the main documents were and how they were used
when the material was brought into the warehouse, when they had to transport the materials
and which documents were required then. The first document in the FM department, when
goods have arrived from the party, is called the GR/LR or Biliti.
The other main documents which are made or used in the First Mile department are as
follows-

 Main Challan
 Local Challan
 E-Way Bill
 POD (Proof of Delivery)
 Acknowledgment Report
 Gate In
 Arrival Report
 Dispute Report
For the first week, I started my work in the First Mile department, having been introduced to
the staff. What I learned from here is that the first mile department is divided into two phases,
First Mile: Inbound and First Mile: Outbound.
For two three days my work was briefly shifted to the head office, where I was working with
the employees to understand what sort of reports were being made, the purpose of PODs, Ack
and Gate In. Staying there for around two days, I was instructed to work at the Faridabad
warehouse, working in depth as to how the First Mile, or commonly called the Booking
department, worked, how the documents were prepared and what the entire process flow was.

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 First Mile
In First Mile, Inbound, the process flow is as shown below:

These are the five major steps, along with security checks of the vehicle which are conducted
by the on-ground staff when it enters the warehouse. The steps are explained as follows:
 Customer Master Data- The master data included the information about the customers
who operate with Chetak and request their material to be picked up from their location
to be transported. The master data includes the following information:
o Who the customer is?
o Location
o Type of Packaging (Pallet, Cartoon Box)
o Distance from The Warehouse
o Consignor, Consignee
o Weight, Value of Goods

 Receiving of Order-The next step is when the actual order of the material is placed. It
includes:
o Includes when the order is supposed to be picked up (time and place).
o What the material is (packaging involved).
o Weight of the Order.
o Deciding which truck should be sent.
o Where the material is to be transported and any additional details that need to
be discussed with the consignee.

 Assigning of Truck- The next step involves selecting which truck must be sent to the
party for the ‘collection’ of the material. This includes:
o Depends on how much material must be picked up.
o Which Trucks are available to send and the distance between warehouse and
pickup location.
o Process is called 'Collection' of materials, picking and loading of materials onto

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 the truck to return to the warehouse.
o Typically, companies that have a good relationship with Chetak don't require
manual GR (goods receipt) to be made on the spot while on collection.
o The GR is made once the goods are brought back to the warehouse and
inspected by the person in charge.
o In case of any issues or errors, communication is to be done with the Branch
Head.

 Collection of Material- Someone from the branch is sent to the party for the collection
of the material if the party requests any documentation such as the GR to be made on
spot. In most cases, the driver simply collects and brings the material back to the
warehouse. Parties whose material is collected on the regular have a mutual
understanding and ensure no errors are committed while the collection and verification
of the material.

 Unloading and Placement- The steps are as follows:

o The material is inspected to make sure there is no damage of any kind before
being unloaded in the warehouse.
o The material is placed on to a specific rack.
o The racks are differentiated based on where the destination of the material is,
which helps the workers identifying which goods needs to be picked at the time
of loading.
o
The racks are differentiated as to where they will deliver the final material, they are as follows:
o Pune
o Bhiwandi
o Aurangabad
o Chennai
o Bangalore
o Pithampur, Rajkot, Rudrapur.

 Making of the GR (Goods Receipt)- Also called the Consignment, this

document is made against the invoice when the goods are brought into the
warehouse. The data is entered into the system and the papers are stored for
future delivery purposes. It helps serve as a proof of the material being brought
into the warehouse and to ensure that the proper material is loaded onto the
truck for the final delivery. An example is given below:

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Major Details added when making of the GR:
o Consignor, Consignee, Delivery Location and Reporting Branch, E-Way Bill
No.
o Type of Goods, No of packages and weight.
o Any additional remarks, along with consignor part no, gross and net value and
quantity.

This was the First Mile, Inbound procedure as explained above. To summarize, the party
contacts the specific branch for their material to be picked up. Depending upon the weight and
size, along with the distance to the warehouse, a truck is sent which collects the goods, also
called ‘Collection’ and returns to the warehouse. The invoice is sent, once the material is
unloaded, through which the consignments are made and stored for further delivery.
We shall now be looking at First Mile, Outbound, where the stored material is sent to the final
location as requested by the respective party. The process flow diagram is mentioned below:

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The material which is brought into the warehouse during the collection is then transported to
its respective destination. This process includes the consolidation of the E-Way Bill, making
of the Main or Local Challan, Tracking of the Vehicle. The total material which is sent
depends upon the availability of the trucks and the locations. If enough material is available
for a location like Chennai, only that material is sent, otherwise Bangalore plus Chennai is sent
together to save costs.
The Process steps are explained below:
1. Material and Weight Confirmation:
 Check to ensure how much material is available to deliver.
 Communicate with the driver to inform them of the availability.
 See if the materials consist of only pallets or any other packaging as well.
 Keep in mind the locations where the material must deliver, ensure proper
loading is done in case of multiple locations

2. Vehicle Availability Check:

 Availability of the material is followed by checking which vehicles are at the
warehouse.
 Communication with the drivers is also done to ensure that they are aware of how
much material is to be taken and to which locations.
 Once these steps are confirmed, the documents and the tally is soon followed.

3. Document Preparation- Once the weight, and the truck availability is confirmed, the
process shifts to making of the documents. The GRs which were made during the First
Mile, Inbound process, are collected together. The other documents which are to be
made are as follows:
 Making of the Consolidated E-Way Bill. The E-Way bill, a government document, is
required for the transportation for any material which is worth more than Rs.50,000.
 The Challan, Main or Local Depending on the location of the material sent. Main
Challan is for outside state, while the local challan is for movement within the same
state or the same city.
 Challan can have incentives or penalties if the material is sent through express. It
contains a list of all the GRs, the kanta weight, advance payment and balance amount,
details of the lorry and the driver.

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 E-Way Bill:

The vehicle number and along with the all the consignments are entered in the E-Way
bill website, following which a consolidated E-Way bill no is generated that is attached
with the documents

A sample is presented below:

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Main Challan- For any movement of goods outside the state, the main challan is made.
This helps with the parties knowing their goods have been dispatched, the driver is
aware of how much he is getting paid for the delivery, the no of consignments which
are to be delivered and what the expected dates, along with any incentives or penalties
mentioned.

Local Challan- For the movement of any good which is done within the same state or
city. This challan is typically made for the Last Mile department, where the parties
request the material stored at their warehouse to be delivered to their factories. It
includes the same location, without any incentives or penalties.

The sample of both Challan are given below:

Main Challan:

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Local Challan:

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4. Tally Preparation- The next step which follows is the preparation of the manual tally.
The manual tally is done to ensure the correct no of packages are entered in the challan
as it provides a point for cross referencing. It is also helpful as keeping a manual record
can be provided in case the system is ever down and any party requests the challan no
or the vehicle no. To summarize:

 A manual Tally is made in case of system errors.

 It also helps in keeping a separate record should the data be lost.
 It helps with the cross verification of the weight which is to be loaded in the vehicle.

The tally contains- the number of GRs for the vehicle, the vehicle no, the challan no,
the GR number for all the GRs, the invoice no, the date of the Gr creation, the
consignor and the consignee. Lastly, it also contains the number of packages per GR.
The packages are added up and cross checked with the Challan to ensure there is no
error from both sides.

An example of two manual Tally are given below:

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5. Consolidation of the Materials: Once the final collection and confirmation of the
materials is completed, the workers must consolidate all the materials at the loading
dock. The invoice numbers for the materials must be checked to ensure the correct part
no. is being loaded and the right quantity as well. Heavier pallets are moved around
with the help of forklifts, while smaller cartoon boxes are loaded with the hand pallet
jack. This helps with the final loading of the materials in the truck.

6. Loading and Supervision- The final loading of the material is done simultaneously
with the document preparation under the supervision of the person responsible.
 Depending on what type of material is being loaded or where the destination of the
truck is, placement of the packages is considered.
 Heavier pallets are usually placed at the back, along with the material that must be
unloaded first.

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The above two images depict the night loading of a vehicle bound for Pune, the hand
pallet being used for the smaller cartoon boxes, while the labor loads the small material
properly to ensure no damage occurs while transportation.

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 7. Tracking and Communication- The final step comes with the driver providing his
details for the tracking of the vehicle. Tracking helps with knowing where the truck is
always and if there are any delays then due to what reason it is being held up. Tracking
is done through the Traqo website and with the help the drivers contact number which
is then tracked through GPS. Constant communication is made with the driver to
update the parties of the location and how long until they reach their destination.

The add trip section, where new trips to their destination, vehicle number and mobile number
are added.

With that, the First Mile, Inbound and Outbound process has been completed. The flow chart
is made for anyone to easily understand how the entire process, in both the areas work.
For the first two weeks, I worked in the Inbound department, handling all the duties and tasks
given to me and completing my night duty during this period. We shall now be moving on to

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the Last Mile Department, the flowcharts for the Inbound and the Outbound as depicted
below.

Last Mile

Last Mile refers to the last phase, or the final phase of delivery for any material. The material
is delivered to the parties request to their location, specified by the part number that is stored
in the warehouse. In Faridabad, the most material that is delivered in a day is the part of
Escorts Kubota.
The Last Mile, Inbound, process flow is as follows:

The steps are explained below:

1. Vehicle Tracking and Communication- The vehicle tracking, and communication is
done with the driver to get updates as to when they will reach the warehouse. This is
done to ensure that the workers and the forklift is kept ready to unload the material as
soon as it arrives.

2. Vehicle Gate in and Entry- Once the vehicle arrives at the warehouse, an entry is
made into the system called a Gate in for record keeping purposes. It includes the
challan no, the time when the vehicle arrived, the no of consignments in it and any
additional remarks that are required. A sample is given below:

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3. Material Inspection and Unloading- Once the truck arrives at the unloading dock, the
material is unloaded at a singular point and inspected to ensure there are no damages
to the packaging and all invoices as per the material is present with the driver. Once
the confirmation is done, a manual tally is soon made.

4. Tally Preparation- Manual tally is made here as well for cross checking all part no and
quantity of material as per the party. It also acts as an additional record for the
company in case the system or the internet is not working.

5. Material Storage as Per the Part No or Invoice No- Once the tally is done, the material
is then shifted to its intended location as pre-
 Its part numbers
 Invoice No
 The Party from where the material came from
 The pallets are stacked on top of each other, maximum of two, to save up the space
and to easily identify which part is kept at which location

6. Arrival/ Document Preparation- Once the material has been unloaded, inspected and
shifted to its proper location, its document preparation and arrival is done. The arrival
acts as the proof that the materials had been delivered to the warehouse and their
information has been uploaded into the common system. The documents are stored in
the various filed as per their respective parties. Example- JCB, Escorts, Rane Madras
etc.
The arrival contains- the date, the challan no, from city, unloaded by, packages
received and any short excess or damage, along with all the consignments.

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This was the Last Mile: Inbound Process. We shall now be looking at the Outbound Process.
Do note that some steps may overlap as they are common across various departments, and the
workings do not differ in many cases.

The Last Mile, Outbound, process flow is as follows:

1. Customer Master Data- Name of the consumer, the location of material delivery, the
stock in the warehouse as per the requirement, the charges to be taken are all
mentioned in the master data, which is reviewed and checked with the respective
parties at the start of the day.

2. Stock Availability Check- The stock of the various parties is periodically checked and
verified to ensure the material for delivery is available in ample quantity, in case of
any emergencies or shortages.

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 3. Schedule Confirmation- The schedule, as per the agreement with the parties, is sent
the previous day to ensure the material is available for delivery the next day. Once the
schedule is verified and the parts are checked with the GRs, we proceed to the next
step.

4. GR Collection- All documents are collected in one place, as per the requirement and
the part no, and stored together for future procedures.

5. Tally Preparation- Just like in the inbound process, a manual tally for record keeping
purposes and for cross verification of the material quantity.

6. Material Loading- The material is then loaded onto the truck, with the help of the
factory forklift. Typically, majority of the last mile delivery consists of pallets that
must be delivered, unless the material is of some other packaging. As such, proper
vehicle selection is done and placement to ensure no damages to the material is done.

7. Local Challan, ASN and E-Way Bill- The three main documents which are then made
for the delivery of the materials are the Local Challan for the movement of the goods,
the E-Way bill to ensure there is no stoppage by the Income Tax officers on the road
and lastly the ASN. The ASN or the advance shipment notice, is a notification which
is sent to the company from our side informing them that which part no, to which
plant is being delivered from our side. ASN is an important document which has
become necessary as the company asks for the shipment notice before the material is
sent for delivery.

8. Material Delivery and POD- Once the material is delivered to the location, the
company provides the stamp as the POD, which acts as the proof that the material has
been delivered to the location.

9. POD and the Arrival is entered- The POD which is brought back to the warehouse is
then entered into the system by the person in charge and then the Arrival is made to
ensure the proof is with both the parties.

This was the Last Mile, Outbound process. With this, the main warehouse operations have
been covered, the main components and how the material is brought into the warehouse,
stored and then loaded for final delivery.
Major Parties whose material is transported through Chetak: (In Faridabad)
1. Sterling Limited
2. Amar Udyog
3. FCC Clutch
4. Escorts
5. JCB
6. TalBros
7. Tata
8. Schaeffler India PVT Ltd
9. Flash
10. Sadhu Forging

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 11. Bony Polymers
12. Star Project
13. JM FirmTech
14. DVS
15. Rane Madras
16. Action
17. Kems Auto
18. Delphi TVS
19. Valeo
20. Mothersons
21. India Piston

Problems Solving and Data Analysis of Chetak Logistics

We will now be looking at the data which has been collected to understand and highlight
some inefficiencies of the overall warehousing, collection process and transportation of the
materials that were observed during the internship. Please do note that due to company
policies of sharing sensitive material and data, this analysis is being done on a limited sample
size and limited data that has being shared with the trainees.
This small sample size and the use of pictures and other screenshots is done to provide a
clarity and overall understand which areas of the company and in the warehouse can
improvements be done. Not just from a technical perspective, but also from a general
management area.
The data which has been included in this report is mentioned below, following which the
analysis and the conclusion has been given. The data is as follows-
1. The master data- A master data which shows the comparison between the CFT (Cubic
Feet Ton) and the actual weight of packaged materials. This helps the company
understand if there is any discrepancy or any higher difference as to how much the
company is charging to their customers.
2. The daily collection data and dispatch data which shows and highlights how much
material is moving from the warehouse on an average.
3. Pictures which show the conditions of the warehouse, the machinery and the overall
time it might take to load and fill up a truck out for delivery.
Some of my personal observations during the internship which are worth highlighting are
as follows-
1. Deficiency of good equipment
2. Working Systems outdated
3. Communication gaps with parties
4. Poor management within the workings of the company
5. No investment in proper technology and among isolated warehouses

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 To start this analysis, we shall we first having a glance at the master data presented to
us. This data was manually collected while weighing packages based either on the
company or the product name.
S.n Consignor Weight (In CFT (Cubic Feet)
o Name Part ID Package Size (L*W*H) Kg) Kg
1 Flash 9*9*7.5 8 5.25
16*11*5 9 7

2 Sterling Tools 9*9*7 7.8 5

16

3 Sadhu forging 15*10*9.5 6.6 12.3

4 Bony Polymers 22*15*15 43

18*13*13 26

5 Star Project 11.5*11.5*11.5 13.2

First, we shall be having a look at the five companies, namely, Flash, Sterling Tools, Sadhu
Forging, Bony Polymers and Star Project. These five companies are considered one of their
biggest customers for the Faridabad warehouse.
Cubic feet per ton (often abbreviated as "cu ft/ton") is a unit of measurement used in various
industries, particularly in shipping, mining, and materials handling. It represents the volume
or capacity of a material or cargo in cubic feet that is equivalent to one ton of weight. The
specific value of cubic feet per ton can vary widely depending on the density and nature of
the material being measured.
In logistics industries, CFT is used when the actual weight of the package is so low that
charging the parent company on that will not be profitable in any scenario, but, the area that
the product covers is much more than what is being charged.
If a company continues to charge on such products using their actual weight, then they are
liable to lose money and suffers losses. For these reasons, products that cover more area and
their actual weight is very low, their charges are calculated on the CFT.
The biggest example is given above, with Sadhu Forging. The actual weight of the package
as mentioned in the above graph is 6.6 kg, while the CFT is double is the weight of the
package. Which means that even though the package’s weight is 6kg, the area its taking in the
truck is equal to 12kg. Hence, if the company was to charge the customer based on its actual
weight, then it will be liable to lose almost half the profit.
Some other comparisons are given below as well:
16 Motherson 15*15*13 25.35

17 FCC 19*11.5*9 17

18 India Piston 17*16*13 30.6

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(Weight is not given for the CFT as the actual weight is more than the mark for CFT to not
matter).
12 Action L010310G2300 297.5
L030310G6500 422
L02028101800 1000
L01028101700 850
L02031102800 968
L0202810G1902 992
1428G2101 825
1031G2300 561.5
3028104400 203
2028G3400 1087

13 Kems Auto D10217840 20

D10324200 20
D10212460 20
D10423070 20

14 Delphi TVS D1185050 130

D11504860 130
9189219 131
L1BG01601A 42.5
D115004860 250

15 Valeo D10328300 13
D106079770 11.2
D10328290 361
D10481040 14
D10328310 13.5
13*13.5*8.5 13

7 JM D10649460B 880
D10649470B 880
D10441410A 880
D10441400A 880
D10084380B 580
D10759010AD 775
D10759000AD 775
D10616430A 850

8 JCB 332/Y8133 350

332/Y8134 900
332/Y8135 700
336/F1159 500
336/F1160 650

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 9 Schaffler D10117940 475
D10443610 981
D10117930 844
D10245840 969
D10435900 1000
D10190460 1000

10 DVS D10523210 38
D10192740 21

11 Rane Madras D10213070 40

D10704250 16
D10897210 35
D10585070 25

Same as mentioned above, these parties’ actual weight is enough to not calculate the CFT, as
it would be of no use. These parties, with multiple part numbers, are the ones which deal with
single pallets containing a large quantity of materials. These generally are handled by the last
mile department as these are the orders of parties expecting the parts during the day.

Should there be a change in how the CFT is tackled within the company, such as enforcing
and implementing it in a larger number of products? The table above shows the all the major
parties that currently interact and use the services of Chetak Logistics. Many of them already
move products above a weight that doesn’t require or recommend the use of CFT.

Thus, CFT while can be useful for some products, in the case of Chetak Logistics, where
most of the products are well above the prescribed weight, there is no use of using such a
method as in the end the cons outweigh the pros for the company

Now, we shall be moving towards how much the company moves and how much material is
collected on an average. The data down below shows the collection, dispatch, the booking
and the stock status for one day in June.

Despatch & stock details 21-06-23

Company or
Vehicle No Warehouse Location Truck Rate
18mt 32 ft close
HR55XXXX Talbros + Warehouse Bhiwandi body 18mt 52000/-
12mt 22 ft open
HR74XXX 10 mt 36000/-
Talbros + Warehouse Pune body
RJ11GCXX 18 mt 32 ft close
18mt 63000/-
X Talbros + Warehouse Aurangabad body
Company
HR38UXXX
Warehouse Bangalore+Chennai 18 mt CLL Vehicle

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 Booking Inbound Details:

Company Location and Total Material Weight

Talbros Mumbai 2 FTL, Pune 1 FTL
Pune 3205 kg, Chennai 2385 kg, Bangalore 1765
Sterling tool kg
Flash Pune 1935 kg
Start project Aurangabad 1465 kg
Sadhu Pune 790 kg
Bony Pune 65 kg
Besto Narhera 2600 kg, Bangalore 4515 kg
Amar Udyog Chennai 2125 kg, Bangalore 2125 kg
Batra Pune 490 kg
Escort Chennai 210 kg

Total booking inbound- 50675 kg

Booking Outbound Details:

Company Total Weight

Mumbai 18000
Pune 25000
Aurangabad 5000
Chennai 5000
Bangalore 13000
Total booking outbound- 66000 kg

Stock details

Location Total Material

Pune 7400kg
Chennai 8830kg
Bangalore 7330kg
Narhera 2600kg
Rudrapur 750kg

This is how the stock details regarding booking inbound, outbound and dispatch worked. At
the end of the day. There is no automation or barcode scanning system that can automatically
update these numbers, at the end of the day using manual calculations and entering in the
excel sheet themselves do these figures come about, something which can be eliminated to
save time bring about efficiency and

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We shall now be comparing their packaging and what they can do to improve it, along with
on hand machinery that they use and any improvements that can be made.

Firstly, the look at the forklift that is used for loading and unloading of materials.

This is the only forklift available at the entire warehouse and as you can see from the picture,
its condition is not up to the mark. Showing signs of wear and tear, also not in the proper
working condition. It also brings in the question of whether the warehouse is getting enough
traffic for them to not be affected by these shortcomings. Either they are not retaining
customers or gaining new ones as quickly as they would like, or they have been making use
of simply what they have and not investing properly.

Also, from the background, a lot of space is wasted due to not having any pallet racking
systems or any racks in general for the storing of the boxes. This leads to under utilization of
space, and at times the packages that can be stored in the warehouse are way less that what is
being stored there. I will also be sharing some pictures what types of packaging systems
which are used in this warehouse.

Standard cartoon boxes that are used majorly to transport materials.

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Larger pallets are moved with the help of the forklift.

Areas of Improvement

The data which was shown above highlights a certain thing that can be done to bring about an
improvement in the warehouse. They are listed as follows:
1. Better Equipment- Currently, there is only one forklift is available at the warehouse
which is used by the First as well as the Last mile department. Investment in proper
equipment, such as more hand pallet jacks, and maintenance of the existing forklift
can improve the workings. Again, the warehouse here does not see as much traffic as
compared to the others, but preventative measures can be taken to avoid problems in
the future.
2. Safety Gear- Workers in the warehouse have no safety gear. As a suggestion,
providing safety kits to the workers should be the norm as the unexpected can happen
at any time and it is better to be prepared than be caught off guard.
3. Lack of Space Utilization- No pallet racking systems, no racks to keep the smaller
boxes leading to space wastage. Better and more efficient systems can be put in place
to tackle this problem.
4. Operating System/Internet- Chetak system is slow and compared to what may be
available on the market is quite inferior. The system can crash at times and is just
outdated. The other point of emphasis is the internet. All systems run off a fiber
connection that if goes down to some reason, can halt operations as there is no backup
available.

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 Conclusion

To conclude this research and my internship report here, we have seen how a company, a 3Pl
company such as Chetak Logistics survives with the modern times and the growing on set of
technology. In my areas of improvement and suggestions, the most important factor for the
company to be kept in mind here is the change in technology and personnel training,

The staff which work at on ground in Chetak Logistics are not proficient and trained to
handle rapid changes in technology and new advancements. Sooner or later, the company will
have to consider as to how to tackle these issues, especially with the new guidelines of the
Indian Government regarding truck maintenance and their push towards the National
Logistics Plan.

Chetak Logistics unwillingness to adapt and evolve with the changing times is a classic
example of how companies fail to properly analyse their market and implement necessary
changes to keep up with changing times, ultimately losing their market share and becoming a
shadow of their former self.

Keeping those factors aside, it is must be said that Chetak has built on a commendable
reputation, one that relies on the trust to its partners and customers, ensuring that their
products are delivered to them without fail and on time.

Through this report, we had a detailed overview as to how a logistics company might operate
their warehouse channels, relying on their years of experience, their ability to deal with the
customer market as well as the staff and the other variable factors. The purpose of this report
was to give an inside knowledge of a company and understand what challenges they face,
along with their workings.

A lot of the ground work related to logistics in India can be very crude, often relying on
experience over innovation and technological advancements. However, with the recent policy
changes and an overall focus on the development in the logistics sectors, changes will appear
in many of the companies that are focused on the small and medium market sector.

Organizations not only have to focus on the overall market sector and ensuring that they are
properly adapting to it, but they also must create their own standards in the end. Performance
indicators for their employees and benchmarks, management overall and monthly reports and
follow ups can go a long way to improve the performance of the company.

In conclusion, Chetak Logistics exemplifies the critical importance of adaptability and

innovation in the face of a rapidly changing industry. With the right investments in
technology and personnel training, combined with a commitment to upholding their
reputation for reliability, Chetak Logistics can position itself for a prosperous future amidst
the evolving landscape of logistics in India. This report has shed light on the challenges and
opportunities that the company faces, emphasizing the need for proactive measures and a
forward-thinking approach to ensure sustained success in the dynamic world of logistics.

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 References

Frazelle, E. (2002). Supply chain strategy: the logistics of supply chain

management. MCGraw-Hill Education.

Bányai, T., Illés, B., & Bányai, Á. (2018). Smart scheduling: An integrated first
mile and last mile supply approach. Complexity, 2018.

Richards, G. (2017). Warehouse management: a complete guide to improving

efficiency and minimizing costs in the modern warehouse. Kogan Page
Publishers.

Knemeyer, A. M. (2006). Logistics and Supply Chain Management: Creating

Value-Adding Networks. Transportation Journal, 45(1), 61-63.

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