internshipreport_pepsico.vblRepaired.docx

A

Project Report On

“The study of the existing distribution model and warehousing capacities of the WUP and UPMP territory , forecasting the warehousing

requirements till 2014 for this territory and hence developing an improvised distribution model to meet the warehousing requirements

and also gain a competitive edge over distribution by 2014”

Under The Guidance Of

Mr. Sushil Chandra Garu

(Assistant Vice President Operations)

Submitted To

Mr. Rishi Kohli

(Regional GM Supply Chain)

Varun Beverages Limited

In Partial Fulfilment Of

“Post Graduate Program in Business Management”

(2010-2012)

Submitted By

Ms. Punam Garu

Praxis Business School

Bakrahat Road, Rasapunja, Kolkata

1

STUDENT DECLARATION

I hereby declare that this project report titled “The study of the existing

distribution model and warehousing capacities of the WUP and UPMP

territory , forecasting the warehousing requirements till 2014 for this

territory and hence developing an improvised distribution model to

meet the warehousing requirements and also gain a competitive edge

over distribution by 2014” is executed as per the course requirement for

the post graduate program in management. This has not been

submitted by me or any other person to any other university or

institution for degree or diploma. It’s my own work.

Place: Greater Noida and Gurgaon

Date: 8/7/2011

Punam Garu

2

PGPBM

(2010-2012)

ACKNOWLEDGEMENT

In this project I have made an honest attempt to make the research

material as authentic as it could. And I earnestly hope that it

provides useful and workable information and knowledge to any person

reading it.

During this small time frame of six weeks in which the project

reached its completion, there were a few people whom I would like

to make a mention of and without whose help the project would have

never been successfully completed.

I also thank my internal guide Prof. Anindra Haldar and Prof. Srinivas

Govindrajan for their teaching sessions, which helped in giving the

project the initial direction it needed.

I would like to specially thank Mr. Rishi Kohli(Regional GM Supply

Chain), Major Madan(GM Transport), Mr. Manish Tanwar(GM Supply

Chain), Mr. Atul Holkar (Senior VP SCM), Mr. Sushil Chandra Garu(AVP

Operations), Mr. Pradeep Bhargav(Product Planner), Mr. Kafeel

3

Ahmad(SCM MIS) and Mr. Yogesh Singh(Plant Head) for assisting me

throughout this project. I dedicate this project to the employees of

PepsiCo-VBL at Greater Noida and Gurgaon for their full faith &

cooperation.

Punam Garu

PGPBM

2010-2012

PREFACE

We were given a supply chain management project for Varun Beverages

Limited. During the course of time, we gained experience in inventory

planning and management, planning distribution etc.

It was a firsthand experience to get exposed to the professional set-up and

understand the difference in theoretical models and the barriers faced

in implementing those models, which was really a great experience.

Working with Varun Beverages Limited has been a pleasure.

I take this opportunity to present the project report and sincerely hope

that it will be as much knowledge enhancing to the readers as it was to

use during the study of the project and the compilation of the report.

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CONTENTS

Particulars Page nos

Objectives of the project 6

Methodology 7

Territory Western Uttar Pradesh 8-9

Infrastructure of Warehouses 10

Primary Volume in the Warehouses (from Jan-

May 2011)

11

5

Dadri Warehouse 12-18

Daurala Warehouse 19-25

Roorkee Warehouse 26-30

CFA/HUB Distribution of WUP 31-33

Territory Uttar Pradesh Madhya Pradesh 34-35

Infrastructure of the Warehouses 36

Primary Volume in the Warehouses (from Jan-

May 2011)

37

Agra 38-44

Gwalior 45-49

Jhansi 50-54

OBJECTIVES OF THE PROJECT

➢ To study the existing distribution model6

➢ To understand the current warehousing and storage capacities in the areas of WUP, UPMP. This would include the available storage capacities in the plant warehouses, depots and C&F agents

➢ To forecast the warehousing/storage requirements that the company should be equipped with till 2014. This would be calculated with respect to the expected average sales growth and expected sales growth of the respective territories till 2014

➢ Analyze the feasibility of expanding the warehouse space and to explore other possible options of increasing or controlling the storage capacities

➢ To suggest a distribution model that would meet the requirements of 2014 and would be feasible for the company

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METHODOLOGY

➢ To know the expected sales growth and also the sales growth territory wise till 2014

➢ To know the depots, warehouses that serve the C&F agents, distributors in these territories and also note their respective distances

➢ To know the current available space of the warehouses, depots, C&F agents➢ Analyze the feasibility of expanding the warehouse space and also to explore

alternatives , so as to decide upon the best fit model

8

9

TERRITORY- WESTERN UTTAR PRADESH

10

11

Jan to May Primary Volume of WUP territory – 55, 24,549

Jan to May Secondary Volume of WUP territory – 52,21,809

Dependency of WUP territory – Greater Noida Plant, Kosi Plant, Bhiwadi Plant

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This symbol represents C&FA’s and HUBS. The WUP territory has eight C&FA’s and two hubs.

The symbol represents WAREHOUSES/DEPOTS. The WUP territory has three depots in Dadri, Daurala and Roorkee.

The symbol represents PLANT. The WUP territory has one plant in Greater Noida

INFRASTRUCTURE OF WAREHOUSES

Warehouse Distribution StructureWarehouse Warehouse Warehouse

DADRI DAURALA ROORKEEInfraStructure

Area 12000 13500 6000Storage Capacity C/s 48000 54000 24000

C&FA/HUB Distribution Structure

Infrastructure Area (square feet) Storage Capacity C/s

Ghaziabad (C&FA) 7200 28800

Meerut (C&FA) 6500 26000

Meerut (C&FA) 1200 4800

Noida (C&FA) 6300 25200

Saharanpur (C&FA) 1800 7200

Saharanpur (C&FA) 6300 25200

Dehradoon (C&FA) 2750 11000

Mohan Nagar (C&FA) 5000 20000

Shamli (HUB) 3500 14000

Bulandshahar (HUB) 4400 17600

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N.B. - It’s being considered that each square feet of the warehouse space can accommodate four cases.

PRIMARY VOLUME IN THE WAREHOUSES (FROM JAN-MAY 2011)

Month DadriStored Capacity

Per day stored Stock that can be stored(in days)

Actual Capacity

Jan 29263 975 49 48,000Feb 88041 2935 16 48,000March 136404 4547 11 48,000April 297308 9910 5 48,000May 352660 11755 4 48,000

Month DauralaStored Capacity


Actual Capacity


Month Roorkee

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Stored Capacity


Actual Capacity


Hence we can observe that in the month of May the primary volume of the warehouses/depots is the highest. This implies that during the month of May a maximum of 3-4 days stock can be kept on any particular day. Therefore the need of expanding the capacity of warehouse or exploiting any other alternative so as to manage the expanding volume by 2014 arises.

SECONDARY VOLUME: DADRI WAREHOUSE (ASSUMPTIONS AND PROJECTIONS ARE DONE TAKING INTO CONSIDERATION THE VOLUME OF MAY 2011)

DadriCurrent Capacity

Expected Capacity

2011 48000 502402012 48000 633022013 48000 797612014 48000 100499

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The expected capacity of Dadri warehouse till 2014 is found out by firstly taking the per day secondary volume in the month of May 2011 of Dadri warehouse and then finding out the percentage volume of glass SKU’s of the total secondary volume of Dadri warehouse for the month of May 2011. For Dadri warehouse the percentage of glass SKU’s to the total secondary volume for the month of May 2011 is 43%. Since the rotation of glass SKU’s is much faster than the PET/ TETRA SKU’s , therefore the volume of glass SKU’s that should be kept is considered to be half of its percentage volume contribution. Hence now the per day secondary volume is calculated by considering the volume of glass SKU’s to be half. The lead time is considered to be 5 days which implies that on any particular day the warehouse should hold 5 days stock. Therefore the expected capacity for 2011 is the space required to hold 5 days stock (per day secondary volume*5). Now a year on year growth of 26% is considered and henceforth the expected capacity for 2012, 2013 and 2014 is calculated.

CITIES CONTRIBUTING TO 80% OF SECONDARY VOLUME FROM DADRI DEPOT

DADRI Warehouse

Supplying Plant/Depot CITY

Sec-Jan-May

% Contb. in Total

DispatchCumulative %

Contb.

Aprox Distance

in KmDADRI Warehouse GHAZIABAD 116867 12.6 13 19

KHURJA 79341 8.5 21 55MODINAGAR 66212 7.1 28 50MEERUT 65028 7.0 35 80GARH MUKTESHWAR 36266 3.9 39 80MURAD NAGAR 33469 3.6 43 36KASANA 32049 3.4 46 23PILKHUWA 31833 3.4 50 43

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KHEKRA 31188 3.4 53 75DHOULANA 31007 3.3 56 35MOHAN NAGAR 28826 3.1 59 28SIYANA 25454 2.7 62 70MANDI SHYAM NAGAR 25044 2.7 65 14GULAWTI 23818 2.6 67 40SIKANDRABAD 21758 2.3 70 18Surajpur 20978 2.3 72 10SIMBHAWLI 19989 2.2 74 75NOIDA 19896 2.1 76 25Salarpur 19345 2.1 78 75JEWAR 18131 2.0 80 55

VOLUME CONTRIBUTION BY THE DISTRIBUTORS OF THE HIGH CONTRIBUTING CITIES

Ghaziabad

ADITYA TRADERS 5724HARI DARSHAN & CO. 5357SAN BEVERGES PVT LTD 42813Grand Total 53894

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Khurja

SHRI SAI BABA TRADING CO. 11990

Grand Total 11990

Modinagar

BALAJI TRADERS 8172MONU TRADERS 11413RAHEESUDDEEN TRADERS 4960Grand Total 24545

Meerut

B.S.TRADERS 9906

SHRI BALAJI TRADERS 16230

Grand Total 26136

Distributors such as Shri Sai Baba Trading Co. and Monu Traders take high volumes from Dadri warehouse. Therefore these distributors can be directly served from the Plant rather than the warehouses/depots. This would ensure that

➢ Full truck loads are sent to the distributors and orders are not delivered in small vehicles which leads to the increase in freight cost

➢ Loading and unloading charges are saved➢ Lesser stock is stored in the warehouses/depots

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DADRI Warehouse- Comparison of the location of the cities serving 80% volume from Dadri and Ghaziabad

Cities seving 80%

Billing Quantity

% Contribution of total

Distance from Dadri (kms)

Distance from Ghaziabad (Kms)

Distance diff

% contribution of 80%

Location Comparison

KHEKRA 31188 3.4 75 37 38 4.2Near to Ghaziabad

MODINAGAR 66212 7.1 50 24 26 8.9Near to Ghaziabad

MEERUT 65028 7.0 80 55 25 8.7Near to Ghaziabad

PILKHUWA 31833 3.4 43 21 22 4.3Near to Ghaziabad

GHAZIABAD11686

7 12.6 19 0 19 15.7Near to Ghaziabad

MURAD NAGAR 33469 3.6 36 17 19 4.5Near to Ghaziabad

SALARPUR 19345 2.1 75 56 19 2.6Near to Ghaziabad

MOHAN NAGAR 28826 3.1 28 10 18 3.9Near to Ghaziabad

SIMBHAWLI 19989 2.2 75 60 15 2.7Near to Ghaziabad

GARH MUKTESHWAR 36266 3.9 80 70 10 4.9

Near to Ghaziabad

DHOULANA 31007 3.3 35 25 10 4.2Near to Ghaziabad

NOIDA 19896 2.1 25 20 5 2.7Near to Ghaziabad

GULAWTI 23818 2.6 40 43 -3 3.2 Near to DadriSIYANA 25454 2.7 70 80 -10 3.4 Near to DadriJEWAR 18131 2.0 55 70 -15 2.4 Near to Dadri

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SURAJPUR 20978 2.3 10 27 -17 2.8 Near to DadriSIKANDRABAD 21758 2.3 18 36 -18 2.9 Near to DadriMANDI SHYAM NAGAR 25044 2.7 14 33 -19 3.4 Near to DadriKHURJA 79341 8.5 55 80 -25 10.6 Near to DadriKASANA 32049 3.4 23 56 -33 4.3 Near to Dadri

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As per analysis, It is observed that out of locations which are contributing 80% of secondary volume , 67% of the contribution are from the locations in the vicinity of Ghaziabad and 33% of the contribution are from the locations in the vicinity of Dadri.

SCOPE FOR PALLATAZATION

FROM GREATER NOIDA TO DADRI

FROM GREATER NOIDA TO SURAJPUR

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Recommendations:

Relocation and expansion of the Dadri warehouse is required. The current area is 12,000 square feet and the proposed area is 17,000 square feet. The warehouse is being recommended to be shifted from Dadri to Ghaziabad as the areas near Ghaziabad can be serviced directly from Ghaziabad instead of Dadri which has limited scope for expansion.

Distributors such as Shri Sai Baba Trading Co. and Monu Traders could be served from the plant itself.

If Dadri warehouse is not shifted then pallatization can be used to increase TAT and reduce

the freight cost. Pallatization can be used from Greater Noida Plant to Surajpur warehouse. Pallatization can be applied only on company owned vehicles and when the distance between two destinations is within 100kms.

SECONDARY VOLUME: DAURALA WAREHOUSE (ASSUMPTIONS AND PROJECTIONS ARE DONE TAKING INTO CONSIDERATION THE VOLUME OF MAY 2011)

DauralaCurrent capacity

Expected Capacity

2011 54000 555292012 54000 699662013 54000 881582014 54000 111079

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The expected capacity of Daurala warehouse till 2014 is found out by firstly taking the per day secondary volume in the month of May 2011 of Daurala warehouse and then finding out the percentage volume of glass SKU’s of the total secondary volume of Daurala warehouse for the month of May 2011. For Daurala warehouse the percentage of glass SKU’s to the total secondary volume for the month of May 2011 is 52%. Since the rotation of glass SKU’s is much faster than the PET/ TETRA SKU’s , therefore the volume of glass SKU’s that should be kept is considered to be half of its percentage volume contribution. Hence now the per day secondary volume is calculated by considering the volume of glass SKU’s to be half. The lead time is considered to be 5 days which implies that on any particular day the warehouse should hold 5 days stock. Therefore the expected capacity for 2011 is the space required to hold 5 days stock (per day secondary volume*5). Now a year on year growth of 26% is considered and henceforth the expected capacity for 2012, 2013 and 2014 is calculated.

DAURALA Warehouse

Supplying Plant/Depot City

Sec-Jan-May

% Contb. in Total Dispatch

Cumulative % Contb.

Approx Distance in Km

DAURALA WarehouseMUAZAFFARNAGAR 141512 12 12 42SAHARANPUR 67671 6 18 110MEERUT 50830 4.4 22 16SHAMLI 34723 3.0 25 73BIJNOR 30375 2.7 28 67KAIRANA 28881 2.5 31 82MANSOORPUR 28785 2.5 33 30NAJIBABAD 28507 2.5 36 90

23

NAHTOUR 23908 2.1 38 71MAWANA 21878 1.9 40 37GANGOH 20656 1.8 41 103NAGINA 20592 1.8 43 96MANDAWALI 20144 1.8 45 73KOTWARI DEHAT 19024 1.7 47 133CHANDPUR 18939 1.7 48 78SHERKOT 18821 1.6 50 111MIRANPUR 17537 1.5 52 41KHATOULI 16648 1.5 53 154HASTINAPUR 16509 1.4 54 46CHAPPAR 16387 1.4 56 57SARDHANA 16280 1.4 57 23DHAMPUR 16154 1.4 59 72PURKAJI 15993 1.4 60 91LAWAR KASBA 15730 1.4 61 20KIRATPUR 15020 1.3 63 82SEOHARA 14797 1.3 64 111RAMPUR 13701 1.2 65 164RAIPUR SADAT 13391 1.2 66 91NOORPUR 12489 1.1 67 92AGZALGARH 11777 1.0 69 125DEOBAND 11632 1.0 70 105CHHUTMALPUR 11370 1.0 71 111PURKAJEE 11217 1.0 72 66BEHAT 11020 1.0 72 133JANSATH 10664 0.9 73 50MODIPURAM 9648 0.8 74 108ROHANA 9549 0.8 75 52PURBALIYAN 9539 0.8 76 26SAKOTI TANDA 9348 0.8 77 9MANDAWAR 9067 0.8 78 77DAURALA 8958 0.8 78 0BUDHANA 8943 0.8 79 45TEWRA 8853 0.8 80 180

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Muzaffernagar

ARPIT TRADERS 578025

ASHU TRADING CO. 13575GARG COLD DRINK AGENCY 2252GOOD LUCK AGENCIES 12125JATIN TRADERS 73PANWAR AGENCIES 1986RAFEY AND SONS 6884S.B.TRADERS 10981Grand Total 53656

Saharanpur

DEEPMANI ENTERPRISES 11350

GAUTAM ENTERPRISES 14460

GOYAL AGENCIES 5303GURU GORAKHNATH AGENCY 3270

HUSAIN ENTERPRISES 2653

SHRI KUBER TRADERS 238

Grand Total 37274

Distributors such as Ashu Trading Co. and Good Luck Agencies take high volumes from Daurala warehouse. Therefore these distributors can be directly served from the Plant rather than the warehouses/depots. This would ensure that



26

27

The farthest city served from Daurala warehouse is Tewra (180kms). Hence a comparison of the distances of the other cities is drawn with respect to Tewra. Cities contributing to 60% of secondary volume of Daurala warehouse have an average distance of 74kms from Daurala warehouse.

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SCOPE FOR PALLATIZATION

From Greater Noida to Daurala

Recommendations:

After Distance and Market potential analysis it has been found that Daurala`s Warehouse location is ideal. Hence no relocation of the warehouse is required but expansion of the warehouse is essential. The current area is 13,500 square feet and the proposed area is 25,018 square feet.

Distributors such as Ashu Trading Co. and Good Luck Agencies can be served from the Plant directly.

Pallatization can be used from Greater Noida Plant to Daurala. This would increase the TAT and reduce freight cost.

SECONDARY VOLUME: ROORKEE WAREHOUSE (ASSUMPTIONS AND PROJECTIONS ARE DONE TAKING INTO CONSIDERATION THE VOLUME OF MAY 2011)

RoorkeeCurrent Capacity

Expected Capacity

2011 24000 412112012 24000 606672013 24000 764402014 24000 96315

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The expected capacity of Roorkee warehouse till 2014 is found out by firstly taking the per day secondary volume in the month of May 2011 of Roorkee warehouse and then finding out the percentage volume of glass SKU’s of the total secondary volume of Roorkee warehouse for the month of May 2011. For Roorkee warehouse the percentage of glass SKU’s to the total secondary volume for the month of May 2011 is 35%. Since the rotation of glass SKU’s is much faster than the PET/ TETRA SKU’s , therefore the volume of glass SKU’s that should be kept is considered to be half of its percentage volume contribution. Hence now the per day secondary volume is calculated by considering the volume of glass SKU’s to be half. The lead time is considered to be 5 days which implies that on any particular day the warehouse should hold 5 days stock. Therefore the expected capacity for 2011 is the space required to hold 5 days stock (per day secondary volume*5). Now a year on year growth of 26% is considered and henceforth the expected capacity for 2012, 2013 and 2014 is calculated.

ROORKEE Warehouse


Sec-Jan-May

% Contb. In Total Dispatch

Cumulative % Contb.


ROORKEE Warehouse

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ROORKEE 72455 16 16 0JAWALAPUR 49329 11 27 25BHUPATWALA 44525 10 37 31HARDWAR 42853 9 46 31VIKAS NAGAR 39388 9 55 107KHANKHAL 35795 8 63 28RISHIKESH 22342 5 68 50BHAGWANPUR 21755 5 72 13MANGLOUR 20940 5 77 20MUSSORIE 17055 4 81 103


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Roorkee

GANPATI AGENCIES 2445RAJAN AGENCIES 23379SABRI PEPSI AGENCY 4510Grand Total 30334

Jawalapur

SHRI LAXMI AGENCY 19010

Grand Total 19010

Haridwar

PUJA DISTRIBUTORS 1560S.MALIK TRADERS 7355SHREE BALAJI ENTERPRISES 12260Grand Total 21175

Vikas nagar

GANESH AGENCIES 12248

Grand Total 12248

Bhupatwala

GIRI ENTERPRISES 18335Grand Total 18335Khankhal

SUKHDEV TRADERS 13699Grand Total 13699

32

Distributors such as Shree Balaji Enterprises, Ganesh Agencies, Giri Enterprises and Sukhdev Traders take high volumes from Roorkee warehouse. Therefore these distributors can be directly served from the Plant rather than the warehouses/depots. This would ensure that



33

Here the volume contributed by Dehradoon is not considered since the billing done at Dehradoon is fictitious. The farthest city from Roorkee warehouse is Vikas Nagar (107kms). Hence a comparison of the distances of the other cities is drawn with respect to Vikas Nagar.

34

Recommendations: After Distance and Market potential analysis it has been found that Roorkee's Warehouse location is ideal. Hence relocation of the warehouse is not required but expansion of the warehouse essential. The current area of the warehouse is 6000 square feet and the proposed area is 10,301 square feet.

Ideal Space RequirementC&FA/HUB Distribution Structure Location Area 2011 2012 2013 2014C&FA GHAZIBAD 7200 5,925 7,465 9,406 11,851C&FA SBT MEERUT 6500 4,462 5,622 7,083 8,925C&FA BST MEERUT 1200 7,163 9,026 11,372 14,329C&FA NOIDA 6300 4,746 5,981 7,535 9,495

C&FADEEPMANI SAHARANPUR 1800

1,087 1,370 1,726 2,175

C&FA GAUTAM SAHARANPUR 3500 1,400 1,764 2,223 2,801C&FA DEHRADOON 2750 4,376 5,513 6,947 8,753

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C&FA MOHAN NAGAR 5000 3,033 3,822 4,816 6,068

GHAZIABAD C&FA

Recommendations: If the Dadri warehouse is shifted to Ghaziabad then the Ghaziabad C&FA needs to be removed. Otherwise expansion of space is required from 2012.

SBT MEERUT C&FA

Recommendations: Expansion of space is required from 2013.

BST MEERUT C&FA


36

NOIDA


DEEPMANI SAHARANPUR


GAUTAM SAHARANPUR

37

Recommendations: No expansion of space is required till 2014.

DEHRADOON


MOHAN NAGAR

Recommendations: Expansion of space is required from 2014

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TERRITORY- UTTAR PRADESH-MADHYA PRADESH

39

40

Jan to May Primary Volume of UPMP territory – 42, 64,531

Jan to May Secondary Volume of UPMP territory – 36, 75,372

Dependency of UPMP territory – Greater Noida Plant, Kosi Plant, Bhiwadi Plant

41

This symbol represents C&FA’s and HUBS. The UPMP territory has eight HUBS.

This symbol represents WAREHOUSE/DEPOTS. The UPMP territory has three depots in Dadri, Daurala and Roorkee.

This symbol represents PLANT. There is one plant in Kosi in the UPMP territory.

INFRASTRUCTURE OF WAREHOUSES

Warehouse Distribution StructureWarehouse Warehouse Warehouse

AGRA GWALIOR JHANSIInfraStructure

Area 13000 13250 4500Storage Capacity C/s 52000 53000 18000

C&FA/HUB Distribution Structure

Infrastructure Area (square feet) Storage Capacity C/s

Dabra (HUB) 10000 40000

Shivpuri (HUB) 6000 24000

Kosi (HUB) 500 2000

Aligarh (HUB) 4500 18000

Kasganj (HUB) 3000 12000

Mainpuri (HUB) 2000 8000

Biduna (HUB) 1000 4000

Lalitpur (HUB) 4000 16000

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PRIMARY VOLUME IN THE WAREHOUSES (FROM JAN-MAY 2011)

Month AgraStored Capacity Per day stored Stock that can be stored(in days)

Actual Capacity


Month JhansiStored Capacity Per day stored Stock that can be stored(in days)

Actual Capacity


Month Gwalior

Stored Capaciy Per day stored Stock that can be stored(in days)Actual Capacity

Jan 48164 1605 29 46,375

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Feb 60580 2019 23 46,375March 118888 3963 12 46,375April 175382 5846 8 46,375May 286659 9555 5 46,375

Hence we can observe that in the month of May the primary volume of the warehouses/depots is the highest. This implies that during the month of May a maximum of 4-5 days stock can be kept on any particular day. Therefore the need of expanding the capacity of warehouse or exploiting any other alternative so as to manage the expanding volume by 2014 arises.

SECONDARY VOLUME: AGRA WAREHOUSE (ASSUMPTIONS AND PROJECTIONS ARE DONE TAKING INTO CONSIDERATION THE VOLUME OF MAY 2011)

AgraCurrent Capacity

Expected Capacity

2011 52,000 285522012 52,000 359762013 52,000 453302014 52,000 57115

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The expected capacity of Agra warehouse till 2014 is found out by firstly taking the per day secondary volume in the month of May 2011 of Agra warehouse and then finding out the percentage volume of glass SKU’s of the total secondary volume of Agra warehouse for the month of May 2011. For Agra warehouse the percentage of glass SKU’s to the total secondary volume for the month of May 2011 is 54%. Since the rotation of glass SKU’s is much faster than the PET/ TETRA SKU’s , therefore the volume of glass SKU’s that should be kept is considered to be half of its percentage volume contribution. Hence now the per day secondary volume is calculated by considering the volume of glass SKU’s to be half. The lead time is considered to be 5 days which implies that on any particular day the warehouse should hold 5 days stock. Therefore the expected capacity for 2011 is the space required to hold 5 days stock (per day secondary volume*5). Now a year on year growth of 26% is considered and henceforth the expected capacity for 2012, 2013 and 2014 is calculated.

AGRA Warehouse


Sec-Jan-May


Cumulative % Contb.


AGRA Warehouse AGRA 66347 9.5 9.5 0

NAGLA-PADI 8170 1.2 10.6 4FATEHABAD 13670 1.9 12.6 5KALAL-KHERIA 7225 1.0 13.6 10KUNDOL,AGRA 6040 0.9 14.5 10DHIMSHREE 6910 1.0 15.5 15KHANDOLI 12665 1.8 17.3 17AKOLA 16800 2.4 19.7 20ETMADPUR 10009 1.4 21.1 22KIRAWALI 15810 2.3 23.3 25SHAMSHABAD 9905 1.4 24.8 25TUNDLA 6968 1.0 25.7 25AWALKHERA 6195 0.9 26.6 25ACHHANERA 13607 1.9 28.6 28

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FATEHPUR SIKRI 17770 2.5 31.1 37ERADAT-NAGAR 5850 0.8 31.9 39RUNAKTA 20980 3.0 34.9 42FIROZABAD 12324 1.8 36.7 45BHADROLI 7184 1.0 37.7 60PINAHUT 5924 0.8 38.6 60JALESAR 5745 0.8 39.4 61SAIYAN 9014 1.3 40.7 65BAH 6353 0.9 41.6 70SIRSAGANJ 9623 1.4 42.9 77JEITPUR-KALAN 8120 1.2 44.1 79JASRANA 6840 1.0 45.1 81ALIGARH 13488 1.9 47.0 86BARNAHAL 5484 0.8 47.8 91KARHAL 7401 1.1 48.8 103JAGNER 14986 2.1 51.0 105VAIDPURA 7655 1.1 52.1 112MAINPURI 5648 0.8 52.9 112LAKHNA 5384 0.8 53.6 117KURAWALI 6830 1.0 54.6 118ETAWAH 5607 0.8 55.4 123BASREHAR 9960 1.4 56.8 124SARAI-AGHAT 7035 1.0 57.8 126BHARTHNA 8535 1.2 59.1 128USRAHAR 8005 1.1 60.2 129KISHNI 7535 1.1 61.3 139BAKEWAR 6390 0.9 62.2 144ACHELDA 7565 1.1 63.3 149JETHRA 7215 1.0 64.3 150BHARTANA 7070 1.0 65.3 155CHAKAR-NAGAR 6191 0.9 66.2 158ALIGANJ 11510 1.6 67.8 160MURAD-GANJ 6070 0.9 68.7 170SAHAR 9270 1.3 70.0 180KUSUMRA 7550 1.1 71.1 180FAFUND 6835 1.0 72.1 183AURIYA 9715 1.4 73.5 184AIRWA-KATRA 6825 1.0 74.4 184BIDHUNA 10410 1.5 75.9 185BHOGAON 8245 1.2 77.1 185

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AJITMAL 14395 2.1 79.1 200MAHEWA 11005 1.6 80.7 350


Agra

ANKUR TRADERS 2940GANESH & COMPANY 1550KAILASH AGENCY 600KAKA AGENCIES 1250MAHALAXMI SALES CORPORATION 6115NEW VISHAL AGENCY 3200SHYAM JEE AGENCIES 300Grand Total 15955

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No distributor takes high volume from Agra warehouse, therefore the distributors should be served from the Agra warehouse and not Plant.

48

49

The farthest city from Agra warehouse is Mahewa (350kms). Hence a comparison of the distances of the other cities is drawn with respect to Mahewa. Since 80% of secondary volume of Agra Warehouse is contributed by 56 cities. This shows that the Agra Warehouse serves a large number of cities surrounding Agra. Cities contributing to 60% of secondary volume of Agra warehouse have an average distance of 62kms from Agra warehouse.

SCOPE FOR PALLATIZATION

From Kosi to Agra

Recommendations:

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Hence relocation of the warehouse is not required but expansion of the warehouse since 2012 is required. The current area of the warehouse is 13,000 square feet and the proposed area is 19,560 square feet.

Pallatization can be used from Kosi Plant to Agra warehouse.

SECONDARY VOLUME: GWALIOR WAREHOUSE (ASSUMPTIONS AND PROJECTIONS ARE DONE TAKING INTO CONSIDERATION THE VOLUME OF MAY 2011)

Gwalior

Current capacity

Expected Capacity

2011 53,000 355872012 53,000 448402013 53,000 564992014 53,000 71188

The expected capacity of Gwalior warehouse till 2014 is found out by firstly taking the per day secondary volume in the month of May 2011 of Gwalior warehouse and then finding out the percentage volume of glass SKU’s of the total secondary volume of Gwalior warehouse for the month of May 2011. For Gwalior warehouse the percentage of glass SKU’s to the total secondary volume for the month of May 2011 is 45%. Since the rotation of glass SKU’s is much faster than the PET/ TETRA SKU’s , therefore the volume of glass SKU’s that should be kept is considered to be half of its percentage volume contribution. Hence now the per

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day secondary volume is calculated by considering the volume of glass SKU’s to be half. The lead time is considered to be 5 days which implies that on any particular day the warehouse should hold 5 days stock. Therefore the expected capacity for 2011 is the space required to hold 5 days stock (per day secondary volume*5). Now a year on year growth of 26% is considered and henceforth the expected capacity for 2012, 2013 and 2014 is calculated.

GWALIOR Warehouse


Sec-Jan-May


Cumulative % Contb.


GWALIOR Warehouse GWALIOR 99418 15.5 15.5 0Shivpuri 59627 9.3 24.8 120DABRA 54633 8.5 33.3 43DEEN DAYALNAGAR 48144 7.5 40.8 7MORENA 40836 6.4 47.2 40BHIND 37726 5.9 53.1 78GWL.OUTER 32527 5.1 58.1 10ASHOK NAGAR 26774 4.2 62.3 180GUNA ii 18729 2.9 65.2 188DATIA 16435 2.6 67.8 74GOHAD 13779 2.1 69.9 50PICHORE 13768 2.1 72.1 52KAILARAS 12772 2.0 74.1 93SABALGARH 12065 1.9 76.0 116MEHGAON 10078 1.6 77.5 59LUKWASA 9063 1.4 78.9 156PORSA 8060 1.3 80.2 95

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Gwalior

BIG BAZAAR 678CHANDRA AGENCY 190HOTEL CENTRAL PARK 647HOTEL REGENCY 195HOTEL SHELTER 110SANJEEV SALES AGENCY 19629SHRI BALAJI SALES 3810SUN SHINE ENTER PRISES 11396Grand Total 36655Shivpuri

MITTAL TRADERS 19322Sachine sales 13365Grand Total 32687Morena

LAXMI SALES AGENCY 16943Grand Total 16943

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Gwalior Outer

ANURAG SALES AGENCY 13294Grand Total 13294Dabra

ANKIT AGENCY 20468MANSA DEVI SALES 7609Grand Total 28077

Deen Dayalnagar

KARTIKEYA AGENCY 17370Grand Total 17370Ashok Nagar

SAHILTRADERS 10950Grand Total 10950

Distributors such as Sanjeev Sales Agency, Sun Shine Enterprises, Mittal Traders, Sachine sales, Ankit Agency, Laxmi Sales Agency, Anurag Sales Agency, Kartikeya Agency and Sahil Traders take high volumes from Gwalior warehouse. Therefore these distributors can be directly served from the Plant rather than the warehouses/depots. This would ensure that



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The farthest city from Gwalior warehouse is Guna ii (188kms). Hence a comparison of the distances of the other cities is drawn with respect to Guna ii. Cities contributing to 58% of secondary volume of Gwalior warehouse have an average distance of 42kms from the Gwalior warehouse. The highest secondary volume of Gwalior Warehouse is contributed by Gwalior (16%) and a considerable amount by Deen Dayalnagar and Gwalior Outer which has an average distance of 9 kms from Gwalior.

Recommendations:

Hence the location of the Warehouse should not be changed, only capacity expansion should be considered. The current area of the warehouse is 13,250kms and the proposed area is 22,964kms.

Distributors such as Sanjeev Sales Agency, Sun Shine Enterprises, Mittal Traders, Sachine sales, Ankit Agency, Laxmi Sales Agency, Anurag Sales Agency, Kartikeya Agency and Sahil Traders can be served from the Plant directly.

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SECONDARY VOLUME: JHANSI WAREHOUSE (ASSUMPTIONS AND PROJECTIONS ARE DONE TAKING INTO CONSIDERATION THE VOLUME OF MAY 2011)

JhansiCurrent Capacity

Expected Capacity

2011 18000 135462012 18000 232972013 18000 293542014 18000 36987

The expected capacity of Jhansi warehouse till 2014 is found out by firstly taking the per day secondary volume in the month of May 2011 of Jhansi warehouse and then finding out the percentage volume of glass SKU’s of the total secondary volume of Jhansi warehouse for the month of May 2011. For Jhansi warehouse the percentage of glass SKU’s to the total secondary volume for the month of May 2011 is 63%. Since the rotation of glass SKU’s is much faster than the PET/ TETRA SKU’s , therefore the volume of glass SKU’s that should be kept is considered to be half of its percentage volume contribution. Hence now the per day secondary volume is calculated by considering the volume of glass SKU’s to be half. The lead time is considered to be 5 days which implies that on any particular day the warehouse should hold 5 days stock. Therefore the expected capacity for 2011 is the space required to

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hold 5 days stock (per day secondary volume*5). Now a year on year growth of 26% is considered and henceforth the expected capacity for 2012, 2013 and 2014 is calculated.

JHANSI Warehouse


Sec-Jan-May

% Contb.in Total Dispatch

Cumulative % Contb.


JHANSI Warehouse MAURANIPUR 39761 14.9 14.9 69LALITPUR 29101 10.9 25.8 93GURUSARAI 22211 8.3 34.1 81JHANSI 21698 8.1 42.3 0THAPAKBAGH 21056 7.9 50.2 5BHEL 19121 7.2 57.3 15MOTH 18835 7.1 64.4 54BANGRA 16772 6.3 70.7 130NAGRA 13303 5.0 75.7 8BABINA 12000 4.5 80.2 26

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Mauranipur

ASHIFA COLD DRINK AGENCY 19100Grand Total 19100Lalitpur

RAJEEV TRADERS 12100SHRI SHANTI AGENCIES 360Grand Total 12460Gurusarai

MANJUL PROVISION 10626Grand Total 10626Moth

AKANCHHA IMPORIAM 9075Grand Total 9075

Distributors such as Ashifa Cold Drink Agency, Rajeev Traders, Manjul Provision and Akanchha Imporiam take high volumes from Jhansi warehouse. Therefore these distributors can be directly served from the Plant rather than the warehouses/depots. This would ensure that


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The farthest city from Jhansi Warehouse is Bangra (130kms). Hence a comparison of the distances of the other cities has been drawn with respect to Bangra. 80% of the secondary volume of Jhansi Warehose is contributed by 10 cities which have an average distance of 48kms.

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Recommendations:

Therefore the location of Jhansi Warehouse should not be changed, only its expansion should be considered. The current area of the warehouse is 4800 square feet and the proposed area is 9890 square feet.

Ashifa Cold Drink Agency, Rajeev Traders, Manjul Provision and Akanchha Imporiam can be served from the Plant directly.

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Documents

internshipreport_pepsico.vblRepaired.docx