Logistics Mobile Hard Copy

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Shibu lijack

NAME ROLL NO.

FUZAIL 71

MOHD. IBRAHIM 76

HARIS 78

REHAN 83

SUFYAN 84

HAMZA 90

ZOENA 91ZAKIR 95

GROUP MEMBERS

PROF : CHAITALI CHANDARANASUB : LOGISTICS MANAGEMENT


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eNNxT

INDEX

Sr no. TOPICS Pg no.

1 ACKNOWLEDGEMENT 2

2 INTRODUCTION 3

3 ABOUT GeN NxT pvt ltd. 4

4 LOGISTICS ADVANTAGES FOR

GeN NxT .

5

5 TYPES OF LOGISTICS COVERD

BY GeN NxT

7

6 MAJOR COMPONENT OF GN-4U

HANDSET

10

7 COMPONENTS OUTSOURCED

BY GeN NxT

10

8 COST STRUCTURE OF GN-4U

HANDSET

13

9 SUPPLY CHAIN OF GN-4U

HANDSET

14

10 THE VALUE CHAIN CONCEPT 19

11 CONCLUSION 22

12 BIBLOGRAPHY 24

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ACKNOWLWEDGMENT

With a deep sense of pride, satisfaction and gratitude, We

present our project on:

"INDIAN MARKET OF PRODUCTION

&WAREHOUSING (INDIAN MOBILES)"

At this juncture, We feel deeply obliged to the most

respected, Prof:- Chaitali C. who provided us the required

guidance.

This project could not have seen the light of the day without

the inspiration of Prof. Chaitali C. who guided us like abeacon in the dark. We would like to thank her for giving

us her valuable time, suggestions and practical views

throughout our project work, without which the completion

of the project would have been a difficult journey.

Finally, We would like to end this acknowledgement byemphasizing on something that We have learned from our

interaction with people throughout our project.

" No effort or Knowledge ever gained is wasted"

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Logistics comes from the Greek word logistikewhich

means the science of computing and calculating.

Logistics mainly refers to getting the goods , services &

related information right from the source to the final users.

It involves the integration of information , transportation,material handling, warehousing, packaging , inventory,

etc.

Logistics system tries to get the Right Product in the

Right Quantity of the Right Quality to Right Place through

the Right Way to the Right Customer at the Right Time

and at the Right Cost.

INTRODUCTION

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ABOUT THE COMPANY

GeN NxT PVT. LTD.

GeN Nxt is at the topmost position in the Indian telecom

space which was started with the 8 persons and was

established on 4th august, 2010. It has a huge growth in rural

areas. Local mobile manufactures have 17.5% market share

in which GeN Nxt Company has 4.1% and with time this

ratio is increasing. GeN Nxt, offices are located in Mumbaiand Delhi with its Head Office in Mumbai. It has launched

37 mobile handsets within the last one and a half year that

are giving tough competition to smart phones. GeN Nxt

Company sells approximate half a million handsets per year

through 35,000 mobile stores.

Logistics has played a great role in rise and success of

the company . GeN NxT though being an Indian Company

gets it mobile phones produced , assembled and packed in

China. This has been a major contributor for cost reduction

through integrated Logistics Management. The Chinese city

of Shenzhen is the hub of technology . The components forits cell phones are manufactured in Shenzhen. The cell

phones manufactured here ,have a lesser Cost of Production

than in any other place.

The Company also makes use of integrated logistics using

right strategies for transportation and warehousing.

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LOGISTICS ADVANTAGES FOR THE

COMPANY (GeN Nxt)

1) CUSTOMER SATISFACTION:-

Logistics helps the company to provide customer with

the mobile phones on time. Whenever the mobile phone

is desired or demanded by the distributors, good

logistics implemented by GeN Nxt makes it possible

that it is supplied to the customer. This leads tocustomer satisfaction.

2) COST REDUCTION:-

Logistics helps the company in reducing the cost. As all

the work is done systematically and good logistics is

implemented, the procurement of raw material cost getreduced. The ordering of raw material is done in bulk

which reduces much of the cost. The transportation cost

of the handset from China to India and then to the

distributors get reduced, because vehicle used for

transportation is owned by the company itself.

3) COMPETITION :-

Logistics helps the company to face tough competition

with competitors. Due to its good quality, better

performance, on-time availability and providing

customer service on time the company is able to rise

amongst its competitors.

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4) LOGISTICAL COST:-Most of the cost of sales is Logistical cost. As the

manufacturing is done in China and the sale is done in

India, so improved and better logistics function increases

yields and reduces logistical cost.

5) INVENTORY MANAGEMENT:-Logistics helps in inventory management as the suppliers

of raw material are near the processing house, so the

company need not keep inventory of raw materials.

Whenever the raw material are needed they can call for it

with immediate effect.

6) CREATING GOOD IMAGE :-

Logistics helps in creating a

good image of the company by

providing good quality with

product availability and alsoafter sales service. The company

provides with after sales service,

product recall if required, which

creates a good image of the

company.

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1) BUSINESS LOGISTICS:-

Business logistics involves the planning , implementingand controlling the efficient & effective flow of goods,

services and information from the point of origin to the end

user.

So, business logistics is a part of GeN NxT because it also

involved material flow right from the acquisition of rawmaterial (component of mobile phone) till the finished

goods(manufacturing of mobile) so as to satisfy the

costumer needs.

2) INBOUND LOGISTICS:-

This type of logistics mainly deal with the procurement

cycle. It involves sourcing, order placement, transportation,

receiving.

So, the GeN NxT also covers this type of logistics because

firstly it seeks the best sources which fulfill the requirement

of their raw material ,then places the order ,and then opt for

good availability of transportation, then receiving thegoods in their companys godown.

TYPES OF LOGISTICS COVERD

BY GeN NxT .

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3) OUTBOUND LOGISTICS:-

Outbound logistics is the movement of companysfinished product from warehouse department through the

channels of distribution to the end user. It mainly deals

with the outer function of the company.

In GeN NxT the finished goods , i.e. the fully assembled

mobile phones are sent from the warehouse to the

shipment through the different distribution channels of the

company and then shipped to the different countries of the

world.

4)REVERSE LOGISTICS :-

It covers the storage and movement of material that flow

from end user back to the supplier or sellers. It includes

the defective goods, container or packaging material &

etc.

In GeN NxT, reverse logistics

applies when there are or

is any defect in any of thephone model . The company,then

has to Bear the loss of calling

back the whole lot of that model

to the company for repairs.

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5)THIRD PARTY LOGISTICS(3PL):-

3PL is nothing but an external supplier which performs all

or part of the companys logistics function.

So, 3PL plays an important role in GeN NxT, because the

company doesnt have sufficient assets in order to

manufacture all the component s of mobile phone in their

premises, because of this limitation company opts for

3PL.

The components of the mobile phone, the company opts

for 3PL, is given in detail in the next topic.

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eNNxT

CIRCUIT -(MICROPROCESSOR)

CAMERA -of 10MP auto focus with flashDISPLAY -fully touch screen & motion sensor

BODY -scratch proof

SPEAKER- X loud

MICROPHONE-noise reduction

ACCESSORIES-(charger,

hands free, memory card &data cable)

KEYPAD

BATTERY

COMPONENTS OUTSOURCED BY THE

COMPANY

CAMERA (POLARIZ) :- Polariz is the company which is

amongst the leading manufacturing companies for camera. It

is located near the Shenzhen city and the company GeN Nxt

is also located in Shenzhen city .It is good for the company to

give the contract for manufacturing the camera because it

saves the cost for major transportation and also saves time .

MAJOR COMPONENTS OF THE

MOBILE GN-4U

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BODY HOUSING(JIA SHAN) :- This company JIASHAN is

also located near Shenzhen and it is one of the best in making theplastics material for mobile phone, body panels , ipod , etc. Thus,

company outsources the body part manufacturing of the mobile

to this company.

ACCESSORIES (YOUEN) :- YOUEN is a company which

mainly deals in making accessories & parts which includescharger, USB cable wire, hands free , memory card ,etc . GeN

Nxt gives orders for accessories to this company.

DISPLAY(AMOI ELECTRONICS) :- AMOI electronics

company is into making different types of displays of mobile, TV,

LCDs and etc. AMOI like others, is also a Chinese company .

The company outsources the display part of the mobile (handset)

to the AMOI electronics.

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KEYPAD (JIA SHAN) :- JIA SHAN company is in makingthe several types of keypad of the mobile phone which is simple

keypad, qwerty keypad & etc. GeN Nxt gets its keypad

manufactured from this company.

MICROPHONE & SPEAKER (DUSSUN LTD.) :- DUSSUN

Ltd manufactures speaker, microphone, different types of mikes& etc. for many mobile phone companies. The company opts for

this company because it provide the speaker & microphone

which is good in sound clarity.

BATTERY (SHENZHEN MOMAX ) :- SHENZHEN

MOMAX is located in shenzhen. Which manufactures thebatteries of mobiles , dry batteries ,& also in wrist watch sale.

GeN Nxt orders its battery from this company.

eNNxT

KEYPAD (JIA SHAN) :- JIA SHAN company is in making

the several types of keypad of the mobile phone which is simple

keypad, qwerty keypad & etc. GeN Nxt gets its keypad

manufactured from this company.

MICROPHONE & SPEAKER (DUSSUN LTD.) :- DUSSUN

Ltd manufactures speaker, microphone, different types of mikes& etc. for many mobile phone companies. The company opts for

this company because it provide the speaker & microphone

which is good in sound clarity.

BATTERY (SHENZHEN MOMAX ) :- SHENZHEN

MOMAX is located in shenzhen. Which manufactures thebatteries of mobiles , dry batteries ,& also in wrist watch sale.

GeN Nxt orders its battery from this company.

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COMPONENTS COST

CIRCUIT 2500

CAMERA 800

MICRO PHONE 25

SPEAKER 25

ACCESSORIES 400PACKAGING MATERIAL 250

STORAGE & WAREHOUSE 600

LABOUR 500

TRANSPORTATION 400

OCTROI 350

ADVERTISING& PROMOTION ------

INSURANCE 250

BODY HOUSING 1000

BATTERY 500

DISPLAY 1500

TOTAL COST 9100

TOTAL COST = 9100

+IMPORT DUTY =3900

+PROFIT =4000

-------SELLING PRIZE P.U =17000

NO. OF UNIT SOLD

=500,000 units P.Y.

Total sales per year=

17000(S.P.)*500000=

850 Cr.

COST STRUCTURE OF

GN-4U

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SUPPY CHAIN PROCEESS OF

GN-4U HANDSET

1) ACQUIRING OF RAW MATERIAL OR COMPONENTS:-The first step in the Supply Chain Process(SCP) of GN-4U

handset is acquiring of the raw materials and components from

different suppliers .These components the delivered to the

company's process or manufacturing house which is located in

Shenzhen, China.

2) INSPECTION OF COMPONENTS:-

The components received from the suppliers needs to be

inspected in order to bring a conformance of the components

being of the same quality, design, size, etc. as they were

ordered.

3) STORAGE OF COMPONENTS:-These components need to be

stored at a warehouse. The

warehouse of Gen Nxt is close

to the production place and the

components can be taken from

warehouse to the production placeas and when required.

4) ASSEMBLING:-

Here all the components are brought at the manufacturing

plant and assembled into the handset GN-4U. This where the

handset gets manufactures and comes into existence.

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5) INSPECTION OF THE HANDSET:-The manufactured handset now needs to be taken for

inspection. Just like the components, inspection brings the

assurance that the handset GN-4U as per the required quality,

size, weight, technology.

6) PACKAGING OF HANDSET:-The handset after being inspected is now ready to get packed

and delivered to the customer.. The handset is packed into a

box The package also contains the users manual, charger,

data cable.

7) STORAGE & WAREHOUSING:-The next step of supply chain of GN-4U is its storing and

warehousing. GN-4U is stored and warehoused at the

companys own warehouse which is at the same place where

its manufactured i.e. in Shenzhen , China.

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8) TRANSPORTATION:-

GeN Nxt has to deliver and transport the handset from the

point of production(China) to the point of

consumption(India). For this, a shipment has to be

prepared . The packed boxes of handsets are loaded into

container from the companys warehouse and half of it is

shipped to Mumbai and the remaining half is sent to Delhi .

Firstly, the container of packed handsets is sent from the

companys warehouse to the port of shipment via road

transport

At the port of shipment , the container is loaded into a

vessel which leaves for the port of discharge i.e. Mumbai.

Once the vessel reaches port of Mumbai, it is inspected bythe port trust and then it is released back to the company

after verification.

The consignment is transported to the companys

warehouse in Bhiwandi by the company itself using road

transport.

9) DISTRIBUTION:-

The handsets ,after they are received at the warehouse , it is

sent to the distributors. These distributors are located in

many parts of the country . Gen Nxt uses rail transport for

the purpose of sending the handsets to the distributors.

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eNNxT

AQUIRING OF RAWMATERIAL INSPECTION

STORAGEASSEMBLING

INSPECTION OF HANDSETPACKAGING

STORAGE &WAREHOUSING

TRANSPORTATION

DISTRIBUTION RETAILERS

END CONSUMER

10) RETAILERS:-

The distributor of each area then send and distributes these

handsets to the retailer of that area.11) CONSUMER:-

The handset is purchased by the final user. This is final

process of the companys whole supply chain, it is the point

of sale where the ownership is transferred to the buyer of the

handset.

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AQUIRING OFRAW MATERIAL

INSPECTION

STORAGE

ASSEMBLINGINSPECTION OF

HANDSET

PACKAGING

STORAGE &WAREHOUSING

TRANSPORTATION DISTRIBUTION

RETAILERS

END CONSUMER

SUPPY CHAIN PROCEESS OF

GN-4U HANDSET

GN-4U

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A value chain is a chain of activities for a firm operating in a

specific industry. The business unit is the appropriate levelfor construction of a value chain, not the divisional level or

corporate level. Products pass through all activities of the

chain in order, and at each activity the product gains some

value. All these activities should be run at optimum level if

the organisation is to gain any real competitive advantage. If

they are run efficiently the value obtained should exceed thecosts of running them i.e. customers should return to the

organisation and transact freely and willingly

Most organisations engage in hundreds, even thousands, of

activities in the process of converting inputs to outputs.

These activities can be classified generally as either primary

or support activities that all businesses must undertake in

some form.

VALUE CHAIN CONCEPT

OF GeN NxT

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PRIMARY ACTIVITIES ARE:

Inbound Logisticsof GenNext involve relationships with

suppliers and include all the activities required to receive, store,

and disseminate inputs. It Refers to goods being obtained from

the organisation's suppliers and to be used for producing the end

product.

Operations - Raw materials and goods are manufactured into thefinal product in the operation stage of GenNext. Value is added to

the product at this stage as it moves through the production line.

Outbound Logistics - Once the products have been manufactured

they are ready to be shipped to India , then cleared through

custom and then distributed to distribution centres, wholesalers,retailers or customers. Distribution of finished goods is known as

outbound logistics.

Marketing and Sales - Marketing must make sure that the product

is targeted towards the correct customer group. The marketing

mix is used to establish an effective strategy, any competitive

advantage is clearly communicated to the target group through

the promotional mix.

Service - After the product/service has been sold what support

services does the organisation offer customers?. This may come

in the form of after sales training, guarantees and warranties

provided by GenNext.

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SECONDARY ACTIVITIES ARE:

Infrastructure - GenNext ensures that their finances, legal

structure and management structure work efficiently and helps

drive the organisation forward. Ineffiecient infrastructure is waste

resources, could affect the firm's reputation and even leave it

open to fines and sanctions.

Human Resource management - GenNext will have to recruit,

train and develop the correct people for the organisation to be

successful.

Technological DevelopmentAccording to GenNext, the use of

technology to obtain a competitive advantage is very important in

todays technological driven environment. Technology can be

used in many ways including production to reduce cost thus add

value, research and development to develop new products and the

internet so customers have 24/7 access to the firm.Its is a firm's

transformation of inputs into outputs.

Procurement - is the acquisition of inputs, or resources, forGenNext. This department sources raw materials for the business

and obtain the best price for doing so. The challenge for

procurement is to obtain the best possible quality available (on

the market) for their budget.

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CONCLUSION

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HOW TO REDUCE PRODUCTION COST

No company in a production and manufacturing business can

survive and be profitable if the production costs go out of

control. It is a must that the investments and production costs are

kept under control. This is especially important for companies

which are just starting off. Producers capable of producing aquality product at comparatively low costs have more chances of

success in the long run. No firm can survive extra expenditures

associated with production costs. There are many ways of

reducing costs; some of those will be highlighted here.

INSTRUCTIONS

To ensure that production costs are

reduced and you do not have to spend

extra money to get the machines

rolling, your business management

needs to be good and to be done in

proactive manner. You have to plan

ahead and find ways of getting the

raw material in least costly ways

still ensuring the highest quality.

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Your purchase decisions should always be made keeping thefinancial aspects in front. A good manager has the capability of

balancing between high quality purchases and reduced

purchasing costs. It does not necessarily mean that you need to

let the quality down. Remember that no reduction in production

cost is to be done on the price of quality. Quality has to be

maintained. This is after all what makes you a great manager.

Marketing is one of the most important expenditure these days

for all brands. If you can find suitable alternatives to the most

expensive marketing methods, you can reduce overall costs of

production.

Another most important factor is that most firms and

manufacturing units spend extra funds on inventory. You need to

have an impressive accounting and inventory control system.

This is one of the most important factors in this regard.

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BIBLOGRAPHY

Logistics Mobile Hard Copy

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