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itc logistics deployment
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3PL Selection Services DilemmaITC Paperboards and Specialty Papers Division
What are we dealing with?▪ ITC Paperboards &
Specialty Papers Division▪ Largest manufacturer of
Packaging and Graphic Boards in South Asia
▪ The following are the types of Products manufactured in the company:▪ Packaging & Graphic Boards▪ Specialty Boards▪ Specialty Papers
Soda Recovery Process In Brief
SRP
DIGESTOR AND BLOW
TANKS
WASHING
OXIDATION
MULTIPLE EFFECT FFF EVAPORATO
R
SRBDISSOLVING TANK
GREEN LIQUOR
CLARIFIER
SLAKER & CAUSTICIZER
WHITE LIQUOR
CLARIFIER
CO2
AIR
BLACK LIQUOR
SMELT
GREEN LIQUOR
Green Lime
FILTER
LIME KILN
BLACK LIQUOR(70-80% SOLID)
FLUE GAS
WEAK WHITE LIQUOR
WASH WATER
WHITE LIQUORLIME MUD
CaO
CaCO3
Cargo- Green Lime Filter
Transport Of Odd Dimensional Cargo (ODC) From Chennai Port To Bhadrachalam Plant
There was a requirement for transport of an ODC cargo from Chennai port to ITC PSPD’s plant around 300 km from Hyderabad
Material was a project cargo required for expansion of production line
Material dimensions : 12.8mx2.7mx3.1mThis translates to : 42ftx9.1ftx10.4ft
Typical Trailer dimensions: 40ftx9ftx5.5ft(from ground level)- Flat Bed
Tonnage of cargo- 24.4 MTIndia- Max available trailer capacity- 40’ (Bed Length) with 27 MT payload carrying capacity
Issues In Transportation Of ODC Cargo▪ Project Cargo dimensions-Too large for typical flat bed trailer to carry▪ As per Central Motor Vehicles Act, 1989, maximum height of cargo from
ground level cannot exceed 13.2 ft▪ This is required as there are low hanging overhead railway lines and
electricity lines in different parts of India▪ Logistics department- Did not have expertise on transportation of such cargo▪ Earlier precedence for cargo transport- Left to supplier or contracted special
service providers▪ Contacted partner service providers and Fleet Operators to find solution for
transport of this cargo▪ One solution for the height issue is the usage of a low bed tractor trailer▪ Low Bed Tractor Trailer- Reduces bed height by nearly 3 feet.
Available OptionsTypical Flat Bed Tractor-
Trailer Low Bed Tractor Trailer
Transportation- Quotations
Request for quotations sent out to three contractors- AVX Ltd., ACE Ltd. and AC Transport Ltd.
These contractors have significant experience in transportation of project and odd dimensional cargo
AVX Ltd and AC Transport Ltd. quoted Hydraulic Trailer as suggested form of transport while ACE Ltd. suggested Mechanical Trailers for transport
Project Department was then consulted on feasibility of transport via Mechanical Trailer
Main Issue- Sensitivity of Cargo to transport
Due to road infrastructure in India, there was a chance for damage of cargo in transit
Project Department confirmed that the material is a Shell, and contained no fittings which would be damaged
Based on same, commercial and cost analysis was done for the quotations received
Comparative Statement
• As per above comparative, ACE Ltd is most economical at Rs. 8 Lakhs including all transport related costs
• Main issue- Mechanical Trailer has a carrying capacity of 27 MT as per Central Motor Vehicles Act,1989
• Transporter assured that the material can be carried
• ACE Ltd. had significant experience in transportation of such cargo
• Based on the same, a calculated risk was taken to conduct the transport via Low Bed Mechanical Trailer
AVX Ltd. ACE Ltd. AC Transport Ltd.
Material Dimension
Weight (MT) Hydraulic Trailer Mechanical Trailer (Low Bed)
Hydraulic Trailer
12.8m x 2.7m x 3.1m
24.4 Rs. 14.3 L Rs. 8 L Rs. 15 L
OutcomeThe transport of the material was delayed by nearly 20 days due
to documentation issue at Customs
Due to this, material could not be moved out of the port after loading
on the truck
Incurred demurrage charges of Rs 7500/day, coming to Rs 1.5 Lakhs
Transport from Chennai to plant took nearly 15
days due to cargo tonnage and safety
concerns
Delay was within project limit, as other
equipment required for installation had not
arrived yet
Multi Modal Transport▪ Talc, an input for paper manufacturing is procured from
Haldwani, Uttrakhand▪ Due to rainy season and lack of truck availability from
Andhra Pradesh, transport of Talc became difficult▪ Direct Truck availability from Andhra Pradesh reduced due
to drop in fish transport from Kakinada port to Northern regions
▪ Stocks depleting significantly due to this aspect leading to crisis
Alternate TransportAlternate Transport
means for transportation of
material from Haldwani were considered
One means was to bring the material
through rail via Delhi
Truck availability towards Delhi was not
an issue as they are close by (around 270
km by road)
After bringing the material to New Delhi,
rake wagon loading would be done at
railway station
From New Delhi to Hyderabad the
transportation would be by rake
Material unloaded at Hyderabad railway
station and then carried to plant via trucks (Road transport)
Entire operation in three phases- Road-
Rail-RoadCosting- Rs. 3600/MT
Option of Lift on-Lift off of trucks considered
but not found feasible
Comparative Statement
• As seen above, the Rail+ Road combination gives a saving of app. Rs. 1.8 Lakhs/month• However, the transit time increases from 10 days via Direct Road Transport to 15 days
via Rail + Road transport• As per company’s material storage policy- minimum of one month’s stock must be stored• Hence it can lead to certain stock storage issues• Cost of maintaining additional stock can be an issue• Additional factor- Rake availability from New Delhi to Hyderabad can be an issue
ITS Ltd Sun Transport
Savings (Rs./Month)
Savings (Rs. Annualized)
Material Type
Monthly Tonnage
From To Road Truck (16 MT)
Rail + Road
Talc 200 Haldwani Hyderabad Rs 4500/MT Rs 3600/MT Rs 1.8 L Rs 21.6 L
OutcomeTransport resumed from Haldwani to
Andhra Pradesh using Rail + Road transport
mode
To avoid stock storage issue, part of the
quantity was transported by direct road transport as well
Model continuing today as well