Notes : to be used in report

CONTENT FOR { LOGISTICS }

Roadways Logistics : documentation whole process

Internship Report: Detailed Insights into Roadways Logistics Processes

Introduction

During my internship, I had the opportunity to delve into the intricate processes of roadways
logistics, focusing extensively on the sales order and authorization procedures. This hands-on
experience has enriched my understanding of the logistics sector, highlighting the critical role of
meticulous planning and coordination in ensuring efficient transportation and delivery of
materials.

Sales Order Process

The sales order process is a fundamental aspect of logistics, laying the groundwork for
subsequent activities. It encompasses several key steps:

1. Issuance of Sales Order:

o Details Included: The sales order includes comprehensive details such as material
quantity, prices, delivery schedules, and other pertinent information.
o Material Conversion: A standard conversion metric is used where 1 ton equals 1000 kg.
This conversion is crucial for accurate material measurement and documentation.
o Truck Capacity: The typical capacity of a truck ranges from 25 to 30 tons, which
determines the number of trips required and the logistics planning.

Example: If a customer orders 60 tons of material, the logistics team would plan for 2 to 3
truckloads, depending on the truck capacities available (25 tons per truck vs. 30 tons per truck).

Authorization Process

The authorization process ensures that the right materials are handed over to the authorized
individuals, maintaining security and accountability.

1. Authorization Letter:
o An official letter from the organization authorizes a specific individual to collect the
materials. This letter is essential to prevent unauthorized access and ensure that the
materials are handed over to the correct person.

2. Customer Presentation of Authorization:

o The authorized customer presents this letter to the logistics team to initiate the issuance
of a DDGP (Delivery Document cum Gate Pass) or an LSGP (Loading Slip cum Gate Pass).

3. Generation of System Documentation:

o Requisition Slip: A customer-authorized requisition slip is generated, which is valid for
one vehicle. This document acts as a formal request for the loading of the specified
materials.

Example: If the authorized individual presents the authorization letter, the logistics team
generates a DDGP for 30 tons of material to be loaded onto a truck. The requisition slip ensures
that this material is loaded onto the specific vehicle authorized by the customer.

4. Delivery and Loading Documentation:

o The final stage involves meticulous documentation of the delivery and loading process.
This includes:
 Verification of the materials loaded onto the truck.
 Ensuring the loaded material matches the quantity specified in the sales order.
 Issuing necessary documents to the driver, ensuring a smooth transition from
the loading point to the final delivery destination.

Example: Upon successful loading, the driver receives all relevant documentation, including the
DDGP and the requisition slip, ensuring they have all necessary permissions and information for
the delivery journey.

Conclusion

This comprehensive training provided me with a clear and practical understanding of the
logistical processes involved in roadway transportation. From the issuance of the sales order to
the final delivery documentation, each step is crucial in ensuring efficiency, accuracy, and
accountability. This experience has not only enhanced my knowledge but also prepared me for
future roles in the logistics and supply chain industry.

ERP SYSTEM < NOTES > DDGP PROCESS

Today, I completed the authorization process and received detailed instructions from my mentor
regarding the ERP system used in our organization. The key elements I learned to handle include
vehicle numbers, sale order numbers, and quantities. These details are crucial for the system's
operations.

I was introduced to the SAP ERP software where I practiced entering various details such as gate
entry vehicle numbers, driver names, and out-gate details. Additionally, I learned the importance
of accurately recording the delivery number, which is critical for tracking shipments and
deliveries.
My mentor provided me with several tasks to enhance my understanding and proficiency with
the ERP system. These tasks involved entering and filling out specific details in the software,
ensuring that all necessary information is accurately recorded.

Overall, this session significantly improved my practical knowledge of the ERP system,
particularly in handling logistics and delivery information.

Learnings:

1. Understanding and managing key data entries in the ERP system.

2. Accurate recording of vehicle and driver details.
3. Importance of the delivery number in tracking shipments.
4. Practical experience with SAP ERP software.

Tasks Completed:

1. Entered vehicle numbers and driver details.

2. Recorded out-gate details.
3. Ensured correct delivery number input.

2nd DDGP DOCUMENT ISSUEMENT

Today, I gained an in-depth understanding of the Delivery Document Gate Pass (DDGP) process
within our ERP system. The DDGP is a crucial two-step document issuance procedure that
involves multiple departments and ensures proper handling and tracking of materials from entry
to exit.

Detailed Process Overview:

1. Document Issuance:
o First Copy: Issued from the marketing office, this document requires a signature
to authorize the delivery.
o Second Copy: Involves a signature and stamp by the CISF (Central Industrial
Security Force) in-charge. Once this is completed, the vehicle is granted entry into
the industry through the BC gate.
2. Weighment Process:
o Upon entry, the vehicle proceeds to the weighment area for the tare weight (empty
vehicle weight). A slip indicating this weight is provided to the driver.
o The driver then moves to the loading point, where materials are loaded according
to the specified tons in the DDGP.
3. Post-Loading Weighment:
o After loading, the vehicle returns to the weighment bridge for the gross weight
(loaded vehicle weight). This process is witnessed by a security officer to ensure
accuracy.
o The driver receives a weighment slip showing the gross weight.
4. Invoicing Process:
o The vehicle then proceeds to the marketing department near the out gate for
invoicing. Here, a bill is generated based on the loaded materials.
o Invoicing Copies:
 Original and Duplicate Copies: Issued to the customer with the
necessary signatures and stamps.
 Triplicate Copy: Retained by the marketing department for future
reference.
5. Final Steps:
o The CISF at the out gate updates the ERP system with the vehicle's entry and exit
times, ensuring that all information is accurately recorded.
o The vehicle undergoes a final security check before being released towards its
destination.

Example to Illustrate the Process:

 Document Issuance: A truck carrying construction materials arrives at the BC gate. The
marketing office issues a DDGP, and the CISF in-charge signs and stamps it. The truck is
allowed entry.
 Weighment Process: The truck is weighed empty (tare weight) and receives a
weighment slip. It proceeds to the loading area, where it is loaded with 10 tons of cement
as per the DDGP.
 Post-Loading Weighment: The loaded truck is weighed again (gross weight), and the
security officer verifies the process. The driver receives a gross weighment slip.
 Invoicing Process: The driver goes to the marketing department for invoicing. The
original and duplicate copies of the invoice are issued to the driver, and the triplicate
copy is kept for records.
 Final Steps: The CISF at the out gate updates the ERP system with the truck's details.
After a final security check, the truck is released to deliver the materials to the
construction site.

Learnings:

1. Understanding the multi-step DDGP process and its importance in material tracking and
security.
2. Hands-on experience with the ERP system for accurate data entry and tracking.
3. Coordination between various departments (marketing, CISF, weighment area) to ensure
smooth operations.
4. The significance of documentation, including signatures and stamps, in authorizing and
verifying material movements.

Tasks Completed:
1. Assisted in issuing DDGPs and obtaining necessary signatures and stamps.
2. Observed and recorded weighment processes for both tare and gross weights.
3. Participated in the invoicing process and learned the importance of accurate billing.
4. Entered vehicle entry and exit times into the ERP system and ensured data accuracy.

This detailed experience provided me with a comprehensive understanding of the DDGP

process, enhancing my skills in ERP system management and inter-departmental coordination.

SUPPLY CAHIN MAIN NOTES OVERALL

Industry Visit to Visakhapatnam Steel Plant (VSP) - Supply Chain Management Report

1ST Production

Introduction: Our visit to the Visakhapatnam Steel Plant (VSP) provided valuable insights into
the various departments critical to supply chain management in the steel industry. This report
summarizes the key functions and processes observed during the visit, spanning from raw
material handling to the production of specialized steel products.

1. Raw Material Handling Plant (RMH): The RMH plant is responsible for the receipt,
storage, and transportation of raw materials like iron ore, coal, and limestone. Efficient handling
and timely supply to subsequent processes ensure uninterrupted production.

2. Coke Oven and Coke Chemical Plant (CO & CCP): The coke oven plant converts coal into
coke, a crucial fuel and reducing agent in the blast furnace. The coke chemical plant extracts
valuable by-products such as tar, benzene, and ammonium sulfate from the coke oven gas.

3. Blast Furnace: The blast furnace is the core of iron-making, where coke, iron ore, and
limestone are converted into molten iron. The process involves complex chemical reactions and
high-temperature operations.

4. Steel Melting Shop (SMS): The SMS converts molten iron from the blast furnace into steel
through processes like basic oxygen furnaces (BOF) or electric arc furnaces (EAF). This stage
includes refining and alloying to achieve desired steel properties.

5. Continuous Casting Department (CCD): In the CCD, molten steel is solidified into semi-
finished products such as slabs, billets, and blooms. Continuous casting ensures uniformity and
quality, forming the basis for further processing in rolling mills.
6. Rolling Mills: The rolling mills shape and size the semi-finished steel products. This includes
hot and cold rolling processes to produce sheets, plates, and coils with precise dimensions and
surface finishes.

7. Light and Medium Merchant Mill (LMMM): The LMMM specializes in producing a
variety of light and medium structural sections, angles, and channels used in construction and
engineering applications.

8. Wire Rod Mill (WRM): The WRM produces high-quality wire rods used in various
industries, including construction, automotive, and engineering. The process involves hot rolling
and controlled cooling to achieve the desired mechanical properties.

9. Medium Merchant and Structural Mill: This mill produces medium-sized structural
sections, beams, and channels, crucial for building and infrastructure projects. The focus is on
strength, durability, and dimensional accuracy.

10. Special Bar Mill: The Special Bar Mill produces high-quality bars and rods for specialized
applications such as automotive components, machinery parts, and high-strength fasteners.
Precision and consistency are key factors.

Conclusion: The visit to VSP highlighted the intricate and interconnected processes involved in
steel production. Understanding these departments' roles and their efficient management is
crucial for optimizing the supply chain in the steel industry. This knowledge will be instrumental
in enhancing our report on supply chain management.

2nd Planning

 Production Management Department: This department collects information from various

branches and communicates product-specific information to all stockyards. They consolidate
requirements from each stockyard to create a comprehensive production and distribution plan.
 Production Planning Monitoring Group: This group translates market demand into production
plans. They determine how much production should be done based on current market needs
and oversee the production process to ensure it meets these demands.

Production, Planning and Monitoring Department (PPM) ▪ Formulation of Annual and Monthly
Production Plan. ▪ Analyzing Plant performance against targets on a periodic basis and put up for
information. ▪ Formulation of techno – economic norms and reviewing the same against targets
periodically. ▪ Raw material requirement projection of Coal, Ore and fluxes. ▪ Preparation of
MIS on Inward and outward traffic w.r.t. incoming raw materials and outward dispatches.

Quality Assurance and Technological Development (QA &TD) The QA & TD dept. has been set
up to take care of activities pertaining to Quality Control of Raw Materials, Semi finished
products and finished products. The QA & TD labs are provided at major department like
CO&CCP, SP, BF, SMS, Rolling Mills etc., in addition to Central Laboratory. The
department monitors the process parameters for production of quality products. QA & TD
carries out analysis, testing and final inspection including spark testing of finished products
and assigns grades to them. Research and Development

3RD Work Order Management

 Definition: Initiating orders for materials required for production within a specified
period. Work order management is a systematic approach to processing and completing
maintenance and other work orders to streamline tasks and reduce downtime.
 Example: Ordering 100 tons of steel for manufacturing rail components over the next
month.

4TH Stock Transfer Order (STO)

 Purpose: Facilitates the transfer of materials between different stockyards or distribution

points.
 Example: Transferring inventory from the manufacturing plant to regional stockyards
like Faridabad or Pune.

5TH Sales Order Processing

 Process Steps:
1. Customer Quotation: Providing detailed pricing and quantity information to
potential buyers.
 Example: Issuing a quotation to a client detailing the cost and quantity of
steel rails required for a railway project.
2. Payment: Settling dues with the supplier (e.g., RINL VSP) for raw materials
outlined in the customer quotation.
 Example: Completing payment to RINL VSP for the steel materials
requested in the quotation.
3. Sale Order: Finalizing the transaction by issuing a sale order, detailing the terms
of the sale.
 Example: Generating a sales order confirming the sale of 200 tons of steel
rails to be shipped to multiple offices including Vijayawada and
Visakhapatnam.
Roadway logistics – ssswheighment

Ques – after documentation and observation done today he explained me the concept of weighment
procedure of truck < roadway logistics > and showed by appointing a supervisor as weighment would be
done after the vehicle entered near the key houses loading place . vehicle went to weighment platform
before loading weighment goods for truck weight used for innvoicing . after loading the sale order
vehicle again goes towards the weighment platform ( which involves loading tons or goods or raw
materials ) with this they issua a bill . as truck weight minimizes from weight of raw materials in truck.
for example truck weight + raw materials - minimizes the truck weight for invoice bill of carrying
materials . and observation done give me big explaination to be written in my internship report diary.

Ans – Today's session with my mentor delved into the intricacies of the weighment procedure within the
realm of roadway logistics. The process was elucidated with meticulous detail, showcasing the critical
role of a supervisor in overseeing the weighment operations. Upon a vehicle's arrival near the key
houses loading area, the supervisor ensures that the weighment is conducted accurately.

The procedure unfolds in a systematic manner: first, the vehicle is directed to the weighment platform
prior to the loading of goods. This initial weighment serves as a baseline for determining the truck's
weight, which forms a crucial component in the subsequent invoicing process. Once loaded with the
requisite goods as per the sale order, the vehicle returns to the weighment platform for a second
weighment.

During this second weighment, which occurs post-loading, the weight of the truck is measured again,
now factoring in the weight of the loaded materials. The discrepancy between the initial and final
weighments is indicative of the weight of the transported materials. This weight differential is
instrumental in generating an accurate invoice, ensuring that the billing reflects the precise quantity of
materials transported.

To illustrate, let's consider a hypothetical scenario: the initial weighment records the truck's weight,
denoted as 'Truck Weight.' Subsequently, after loading the materials onto the truck, it returns to the
weighment platform for the final weighment. The final weighment accounts for both the truck's weight
and the weight of the loaded materials, represented as 'Truck Weight + Raw Materials.' The difference
between these two measurements, i.e., 'Truck Weight + Raw Materials' minus 'Truck Weight,' equates
to the weight of the transported materials. This weight differential forms the basis for the invoice,
ensuring precise billing for the carried materials.

Content { Supply Chain managements }

Production

Primary Steel Producers

Steel Producers starting their operation from iron making (production of hot metal or sponge iron/DRI)
using iron ore, virgin or processed and producing crude steel of standard specifications, with or without
rolling/processing facilities. Primary steel producers produce more than 1 million tonnes per annum
from a single location.

Some of the primary steel producers in India are Vizag, Steel Authority of India ( SAIL), TATA, JSW.

Secondary Steel Producers

Steel producers are without captive iron making facilities. Steel producers having EAF and/or EIF
with/without rolling/processing facilities producing crude/finished steel products as per standard
specifications from purchased ferrous scrap and/or its substitutes like sponge iron/DRI. (ii) Steel
processors like hot re-rolling mills, cold rolling mills, galvanizing units, etc. producing finished/value-
added steel products as per standard specifications from semi-finished/intermediate steel.

Content { Logistics }

QUEST – Detailed explaination given on Marketing networks in logistics working in vizag steel plant
industry , Rinl as marketing networks carries in Vsp includes 1. Branch offices Sales 2. Stockyards
3.Consignment Sales Agencies 4. Retailers 5. District Level Dealers 6. Rural Dealers 7. Marketing Contact
Offices < these all involves the process of bills and execution and process planning methods > after this
gathering knoweledge on 25 stockyards which carries : Ahmedabad Bengaluru , Bhubaneswar , chennai
, cochin , Dehradun , Hyderabad etc.

ANS – This report outlines the marketing networks in logistics at the Visakhapatnam Steel Plant
(VSP), operated by Rashtriya Ispat Nigam Limited (RINL). The marketing network of VSP
includes various channels such as branch offices, stockyards, consignment sales agencies,
retailers, district level dealers, rural dealers, and marketing contact offices. This intricate network
ensures the efficient distribution and sales of steel products across the country.

Marketing Networks in Logistics

1. Branch Offices Sales

o Function: The branch offices are the primary points of sales operations, handling
large volume transactions and serving major clients.
o Process:
 Order Processing: Receive orders from major clients.
 Billing: Generate and process invoices.
 Logistics Coordination: Coordinate with logistics for timely delivery.
 Customer Service: Address client queries and provide post-sales support.
2. Stockyards
o Function: Stockyards act as storage and distribution hubs, strategically located to
cater to regional demands.
o Process:
 Inventory Management: Maintain optimal inventory levels.
 Order Fulfillment: Quick dispatch and delivery to customers.
 Quality Control: Ensure product quality through regular inspections.
 Logistics Planning: Plan transportation routes for efficient delivery.
3. Consignment Sales Agencies
o Function: These agencies sell products on behalf of VSP, managing the inventory
on a consignment basis.
o Process:
 Stock Management: Maintain VSP's stock at their premises.
 Sales Execution: Sell products to customers.
 Billing and Payment: Collect payments and remit to VSP after deducting
their commission.
 Reporting: Provide regular sales and inventory reports to VSP.
4. Retailers
o Function: Retailers sell smaller quantities of products to end consumers and
small businesses.
o Process:
 Order Placement: Place orders based on local demand.
 Inventory Management: Maintain stock for quick sales.
 Customer Service: Engage with customers, provide product information
and after-sales support.
 Billing: Manage billing and payments with end consumers.
5. District Level Dealers
o Function: These dealers cater to district-level markets, bridging the gap between
regional stockyards and rural dealers.
o Process:
 Bulk Purchasing: Procure products in bulk from stockyards.
 Distribution: Distribute products to rural dealers and small retailers.
 Billing: Handle invoicing and collections.
 Market Intelligence: Provide feedback on market trends and demands.
6. Rural Dealers
o Function: Focus on rural markets, ensuring the availability of steel products in
less accessible areas.
o Process:
Local Distribution: Distribute products to local consumers and small-

scale industries.
 Customer Engagement: Build relationships with rural customers.
 Billing and Payments: Simplified billing processes to cater to the rural
market dynamics.
7. Marketing Contact Offices
o Function: These offices serve as liaison points for marketing activities, customer
interaction, and market research.
o Process:
 Customer Outreach: Conduct marketing campaigns and outreach
programs.
 Market Analysis: Gather data on market trends and customer preferences.
 Sales Support: Provide support to branch offices and sales teams.
 Feedback Mechanism: Collect and relay customer feedback to improve
products and services.

Overview of Stockyards

RINL's extensive network of stockyards plays a crucial role in the distribution of steel products.
Here is an overview of some of the key stockyards:

1. Ahmedabad
o Strategic location for western India.
o Serves industrial and construction sectors.
2. Bengaluru
o Major hub for South Indian market.
o Caters to the technology and infrastructure sectors.
3. Bhubaneswar
o Key location for eastern India.
o Supports the mining and industrial sectors.
4. Chennai
o Central hub for southern coastal regions.
o Focus on automotive and manufacturing industries.
5. Cochin
o Important for southwestern India.
o Serves the marine and construction industries.
6. Dehradun
o Supports northern regions.
o Caters to infrastructure and construction projects.
7. Hyderabad
o Major center for central India.
o Focus on IT, construction, and manufacturing sectors.

Processes and Methods in Logistics and Execution

1. Order Management
o Order Receipt: Orders are received through various channels.
o Order Confirmation: Verify order details and confirm with the customer.
o Order Processing: Process orders in the system for fulfillment.
2. Billing and Invoicing
o Invoice Generation: Generate invoices for the orders.
o Payment Collection: Ensure timely collection of payments.
o Credit Management: Manage credit limits and payment terms for customers.
3. Inventory Management
o Stock Monitoring: Regularly monitor stock levels.
o Replenishment: Replenish stock based on demand forecasts.
o Stock Rotation: Implement FIFO (First In, First Out) to manage inventory
efficiently.
4. Logistics Planning
o Route Optimization: Plan optimal routes for delivery to minimize costs and time.
o Transportation Management: Coordinate with transporters for timely dispatch.
o Tracking and Monitoring: Track shipments to ensure on-time delivery.
5. Customer Relationship Management
o Customer Support: Provide pre-sales and post-sales support.
o Feedback Collection: Collect customer feedback to improve services.
o Market Analysis: Analyze customer data to understand market trends and
demands.

Conclusion

The marketing network in logistics at VSP, RINL, is a well-organized and extensive system
designed to ensure the efficient distribution and sale of steel products across India. Each
component, from branch offices to rural dealers, plays a crucial role in reaching diverse market
segments. The processes of billing, order execution, and logistics planning are meticulously
managed to maintain high standards of service and customer satisfaction. Through continuous
improvement and strategic planning, RINL ensures that its products are available to meet the
demands of various industries and regions across the country.

CDY

Summary of the Central Dispatch Yard (CDY) at Visakhapatnam Steel Plant (VSP)

Introduction: During our industry visit to the Visakhapatnam Steel Plant (VSP), we received a
comprehensive explanation from our guide about the Central Dispatch Yard (CDY), which is
renowned as Asia's first and largest dispatch yard, spanning approximately 500 acres. With an
investment of 300 crores, the CDY represents a significant advancement in the logistical
operations of VSP.

Overview of the Central Dispatch Yard (CDY): The CDY at VSP was established to
streamline and centralize the dispatch and logistical processes that were previously managed
across nine separate loading points within the plant. These loading points included six mills and
three handling houses (SMS 1, SMS 2, and BCSY). Prior to the construction of the CDY, SMS 1
lacked railway tracks, complicating the logistics.

Pre-CDY Logistics Challenges: Before the establishment of the CDY, the decentralized loading
points created significant logistical challenges. The nine loading points handled the distribution
of goods to meet respective sales orders and service requirements, complicating the coordination
and efficiency of dispatching. The complexity of managing multiple loading points, along with
the constraints in infrastructure, particularly at SMS 1, underscored the need for a centralized
solution.

Implementation of the CDY: Four years prior to our visit, the CDY was established to
centralize the dispatch process. This monumental project included the purchase of 120 wagons
dedicated to internal transportation, managed by the traffic departments. The CDY's
infrastructure includes main areas such as the unloading point, storage yard, and loading yard,
optimizing the flow of materials and goods within the plant.

Logistical Operations at the CDY: The CDY facilitates the efficient handling of goods and
materials. One goods train, referred to as a rake, typically carries 43 wagons, though some rakes
can carry 45 to 59 wagons. The CDY’s design enables the seamless storage and dispatch of
materials, with 350 workers and multiple stakeholders ensuring smooth operations. The
centralized approach at the CDY has significantly improved the logistics process, reducing the
complexities previously faced with decentralized loading points.

Impact on VSP Operations: The establishment of the CDY has had a profound impact on
VSP's logistical efficiency. The centralization of dispatch operations has streamlined the flow of
goods, improved coordination, and reduced logistical bottlenecks. The investment in
infrastructure and wagons has facilitated better management of materials and ensured timely
dispatch to meet sales orders and service requirements.

Conclusion: The Central Dispatch Yard at Visakhapatnam Steel Plant stands as a testament to
the importance of centralized logistical operations in large-scale industrial settings. The
investment in the CDY has transformed VSP's dispatch processes, enhancing efficiency and
reliability. This development highlights the critical role of effective logistics management in the
overall supply chain and operational success of the steel industry.

Railway process Logistics

Internship Report: Logistics in Railway Process
Introduction

This internship report explores the logistics involved in the railway process for the VSP
(Visakhapatnam Steel Plant) industry. The report highlights the intricate steps, planning, and
coordination required to ensure efficient production management and material distribution to
various stockyards via railway.

Production Management and Planning

Informative Discussions and Meetings

The logistics process begins with extensive discussions and meetings within the Production
Management and Production Planning Monitoring departments. These meetings focus on
determining the production to be carried out in the VSP industry and planning the distribution to
different stockyards.

 Production Management Department: This department collects information from various

branches and communicates product-specific information to all stockyards. They consolidate
requirements from each stockyard to create a comprehensive production and distribution plan.
 Production Planning Monitoring Group: This group translates market demand into production
plans. They determine how much production should be done based on current market needs
and oversee the production process to ensure it meets these demands.

Daily Production Reporting

Following the planning stage, the Production Management department conducts daily meetings
to review production necessities and outputs. These reports track how many tons of material
need to be produced and whether production targets are being met.

Example

For instance, if the market demand requires 10,000 tons of steel, the Production Planning
Monitoring group converts this demand into a production plan. The daily reports then monitor
whether the production is meeting this target and if any adjustments are needed.

Railways Logistics Process

Rake Planning

Once production targets are set and monitored, the Production Management group takes on a
crucial role in the railway logistics process. They develop a detailed plan for each rake, ensuring
that the correct materials are sent to the stockyards.
 Rake Plan Creation: The plan specifies the types of goods, tonnage, and other details necessary
for each rake. This plan is based on available stock, production data, and communication with
relevant departments.
 Coordination and Communication: Continuous meetings and communication ensure that all
stakeholders are informed about the materials being dispatched, the quantities, and the types
of goods included in each rake.

Example

If 5,000 tons of various steel products are ready for dispatch, the Production Management team
creates a rake plan that distributes these products across multiple rakes. Each rake may carry
different types of steel, such as sheets, bars, or coils, depending on the specific requirements of
the stockyards.

Rake Indent

The rake indent process is the final and irreversible step in the planning phase. It involves
detailed coordination between the marketing and traffic departments to finalize the plan for
material dispatch.

 Internal Planning: The rake indent finalizes the destination stockyard for each rake and specifies
the exact materials to be dispatched. No changes can be made once this plan is set.
 Daily Reporting: Daily reports are generated to monitor the status of rakes, including unloading,
handover, and any pending processes.

Example

Once a rake indent is raised, if Stockyard A is designated to receive 2,000 tons of steel bars, this
plan is fixed and cannot be altered. The traffic department ensures that the rake is scheduled and
dispatched accordingly.

Freight Operation Information System (FOIS)

Railway Receipts

Upon finalizing the rake indent, a railway receipt is generated. This receipt is essential for the
stockyard to receive the dispatched materials. The Freight Operation Information System (FOIS),
an Indian railway platform, facilitates the generation and exchange of these receipts.

 Receipt Generation and Exchange: The FOIS system allows the seamless creation and sharing of
railway receipts, ensuring that the stockyards have the necessary documentation to receive
materials.
 Material Handover: Upon receiving the railway receipt, the stockyard presents it to the railway
authorities to take possession of the dispatched materials.

Example
A stockyard receives a railway receipt via FOIS indicating that 1,500 tons of steel coils are on
the way. Upon arrival, the stockyard presents the receipt to the railway authorities, who then
hand over the specified materials.

Conclusion

The logistics process in the railway system for the VSP industry involves meticulous planning,
coordination, and execution across multiple departments. From initial production discussions to
the final handover of materials, each step is essential for efficient and effective distribution. This
report provides a detailed overview of the logistics involved, highlighting the critical roles and
processes that ensure smooth operations within the railway logistics framework.

RECENT DEVELOPMENTS IN LOGISTICS ;

1. Introduction to Recent Developments in VSP Logistics

2. Implementation of Late Lifting Penalties in ERP System

VSP Logistics has implemented a new feature in their ERP system, SAP software, to manage
late lifting penalties more efficiently. This enhancement integrates penalties directly into the
system based on gate in/out and lifting times, replacing previous manual calculations.

3. Calculation and Impact of Late Lifting Penalties

Penalties, such as Rs. 50 per ton for late lifting, are now automatically calculated by the ERP
system. For instance, if 50 tons are delayed, the penalty would amount to Rs. 2500 (50 tons x Rs.
50).

4. Establishment of Central Dispatch Yard (CDY)

VSP Logistics has established Asia's largest Central Dispatch Yard (CDY), which serves as a
crucial hub for storage and dispatch operations. This facility significantly enhances VSP's
logistical capabilities and efficiency.