1.

Company Profile: Camel Water Tank

1.1 Manufacturing unit and product details

A water tank is a container for storing water used for drinking and everyday use. The basic
product that will be produced is overhead water storage tank under the name of Camel
Water Storage Tanks. The overhead water storage tanks will be of different sizes such as
500LT, 1000LT, 1500LT, 2000LT, 3000LT, 5000LT and 10,000LT. The unique features of
Camel tanks are that it has a long life of around 10 years, warranty of 5 years, ezo free and
heat resistant. The manufacturing unit will be located in Sachin, GIDC.

1.2 Raw material and its purchase

In order to make the tank, raw materials used are virgin, aglo and master batch. These raw
materials will be purchased from the company producing it in Sachin, GIDC area. The raw
material are purchased and not made as production requires special machines. The
production costs will increase and reaching the economies of scale level will take a high
time. Also if the material is purchased the cost is low as compared to market price due to
bulk purchase.

Master batch= Rs. 160/kg, Aglo= Rs. 70/kg and Virgin= Rs. 88/kg.

1.3 Machines and its purchase

The machines that will be used are rock and roll machine, pulverizer, molder, overhead
hoists, trolley and extruder.

The machines that will be made are molder and rockn roll machine. The reason for purchase
of molders is that the shapes of tank of different companies are different. And also the
molders need to be customized as per the liters. And also rock and roll machine will be made
because the machine needs to be made as per the space available and the heat required for
molding. And also if the machine purchased from outside vendor the price is high with no
customization.
And the machines that will be purchased are pulverizer, overhead hoists and trolley and
extruder machine. The reason for purchase is that the process and use of these machines is
same irrespective of the liters of the tanks produced.

1.4 Process

The raw material used here is Virgin, Aglo, Master batch. This material is used in a proper
ratio according to the requirement. In extruder process, material is mixed through grade and
ratio which is different for different litres of tanks. Then the colour is mixed according to the
master batch in some ratio and colour is obtained. In pulverizing process, the granules are
mixed with granules of black colour concentrators. They are extruded and strands are
chopped as granules so as to achieve uniform distribution of carbon black. And powder is
obtained.

In mould charging, the powder is fed into the rotational molding mould. The amount of
material to be fed depends upon the liter tank which is to be made. It is then kept inside the
rock and roll machine with the help of overhead hoists. In the rock and roll machine the
mould rolls inside horizontally and the machines itself also rolls horizontally in different
directions. Gas is passed through holes on the side and a bit of spark takes place and as a
result fire which creates around 300 degree to 350 degree inside the machine and the tank is
molded.
In mould cooling, the mould is cooled down either through water or slow cooling by air and
the mould is ejected and the tank is labeled and polished.
2. Crucial supply chain and logistic drivers of performance

Supply Chain
Responsiveness
Drivers
Production Flexible manufacturing for different size of tanks.

Order inventory as per requirement as raw material will

Inventory be available nearer to plant. Inventory held by cycle and

safety.

Plant will be located at Sachin GIDC. As it gives best

suitable environment for this. We adopt the approach of
Location
product focus. Warehousing is done as per the stock
keeping unit.

On road transportation via trucks will be used though

Transportation we are covering local market. Because it is relatively

quick and cost efficient.

The information is collected from the distributors which

Information helps in co-ordinated in transportation and production

and also helps in forecasting and production forecasting.

All the raw material are outsource from supplier which

Sourcing
supply goods to GIDC.
3. Roles of logistics for our company

Logistics is the process of strategically managing the procurement, movement and storage of
materials, parts and finished inventory (and the related information flows) through the
organisation and its marketing channels in such a way that current and future profitability are
maximised through the cost-effective fulfilment of orders.

Active since point of origin and going on to the point of consumption, logistics management
is a key component of the supply chain process that facilitates the tripod of strategy, planning
and implementation thereby reducing cost significantly and enhancing customer satisfaction.

There are 6 key functional areas of logistics management

1. Inventory planning and management

As inventory raw material used are virgin, aglo and master batch. This raw material will be
purchased from Sachin GIDC itself. Machine will be used were rock and role machine,
pulverizer, molder, overhead hoist, trolley and extruder. Molder and Rock and role machine
will be made and other machine will be bought from the outside determining the cost aspects.
Movement of the inventory in house will be managed by the use of the trolley.

2. Warehousing
We will have the warehouse located in the manufacturing plant itself.We will have the stock
of the different size of tanks in to the warehouse. We will have 15 tanks of 500 & 1000 lit,
we will have 10 tanks of 1500 lit, and will have 7 tanks of 2000 lit in our warehouse as
finished product, so that requirement of the customer can be reached as per time.

3. Packaging and Storage

Initially the plastic covers were being used for covering the tanks but after the ban on plastics
nothing is used for the covering as the product is highly durable and weather resistance.
Labeling on the tank will be done in the form of logo which will be: “Camel Tanks”. Storage
of the tank is being done only in the warehouse.
 4. Transportation
The way of transportation used will be the Road as product is mainly being delivered in city
itself. Trucks will be used for the transportation and the delivery of the tanks across the city.
Truck will be access on the hiring basis as per the order requirement by the retailer.

5. Customer service
Technical support as the service for the defect generated in the tanks like hole in the tanks
will be solved by the company. We will provide the train welders for the repairing of the tank
at customer’s place. Which will be the great value added for the customer.

4. Network Design
We will use Mid-Point method of distribution and to design the network.

The manufacturing unit will be situated at GIDC Sachin area because of tax benefit available
and also the raw material manufacturers are situated in the same area. The distribution centre
 is placed at Adajan because the retailers are situated at equal distance. The retailers have their
own set of customer base and each retailer will cater to the needs of near by areas business
customers and customers.

1. Varachha- Nana Varachha, Mota Varachha

2. Bhagal- Chock, Dilligate, Navsari bazar
3. City Light- Parle Point, Ghod dod road, Athwalince
4. Vesu- Piplod, VIP road, Sarsana
5. Athwagate- Nanpura, Majura Gate
6. Palanpur Patia- Tarwadi, Jhangirpura, Pal

5. Transportation network, mode of transportation and transport network

design

5.1 Mode of transportation:

There are 5 most common modes of transport namely rail, road, airway, waterway and
pipeline. For transport of water tanks roadway is the most preferred mode of transport as
the product is bulky and has weight. Also contractors will be used to avail service of
trucks because money will not get caught in investment in trucks. Also there are a few
advantages like:

1. Door to door service is provided by trucks using roadways as tanks need to be

delivered at the warehouse of distributor.

2. Because of contract with the transporter it is easy to get trucks whenever required
catering to the normal and unexpected needs of customers.

3. Trucks are useful for carrying the tanks to short as well long distance places.

4. Also in case of non availability of trucks from the contractors GIDC transport service
can be used.

5. The distributor will transport the tanks to retailers and customers using tempos via
roadway.
5.2 Transport network Design:

There are many different ways of structuring a set of transit routes into a network to
provide transit service to a given area.

Midpoint Network design is preferable with the selected type of product. In this design
the basic idea is to deliver products from distribution centre to various destination areas.

Our main distribution centre will be located at Adajan (Surat) and from that the tank will
be delivered to different locations in the city as per the order booking and need of the
retailers. The tank will be sent from factory that is in GIDC, Sachin to the distributor
located at Adajan, Surat who will then send it to different retailers located at Varachha,
Bhagal, Citylight, Vesu, Palanpur Patiya and Athwagate.

5.3 Route Scheduling:

Route scheduling is the process of assigning an arrival and service time for each stop,
with drivers being assigned shifts that adhere to their working hours.
The main objective of both routing and route scheduling is to cut down on your expenses,
such as mileage and vehicle capital costs.
Entire route scheduling as per the price and litre of tanks are displayed below:-

Sr. No. Routes Rates(Rs./litre)

1 Adajan to Varachha (via Canal Road) 0.20

2 Adajan to Bhagal (via Nehru Bridge) 0.10

3 Adajan to City Light (via Cable Bridge) 0.15

4 Adajan to Vesu(via Maharana Pratap Road) 0.20

5 Adajan to Athwagate (via Sardar Bridge) 0.15

 The farthest area such as varachha, vesu will be charged 0.20 rupee per litre, citylight and
athwagate will be charged 0.15 rupee per litre of tank, bhagal and palanpur patiya will be charged
0.10 rupee per litre.
As soon as the order is received from the distributor, it is delivered in maximum one day lead
time. And for special order the order is delivered in 2-3 days lead time. And if the inventory of
tanks is available as per the order, the distributor receives the delivery immediately with a supply
chain lead time of 2-3 hours (varies as per the rules of the city, as in few cities trucks are allowed
to enter at specific time period only.)

6. LSCM Audit

6.1 Requirement analysis:

The customers usually require tanks of 500ltr, 1000ltr, 1500ltr and 2000ltr. These tanks
are delivered to the customers by the distributor or retailer from the stock they hold. And
if the tank is not in stock the distributor gives order to the manufacturer and delivers the
tank with lead time of 1 day. The company follows the strategy of make to stock and
configure to stock. The company keeps the stock of tanks that are mostly sold and
produces tanks for special orders. For normal order tanks delivery time is on the spot or
one day but for special orders the tank usually takes one week to 2 week time.

6.2 Performance analysis:

In terms of cost the delivery cost from manufacturer to distributor it is done on the basis
of number of litre of tanks been carried in truck. The cost per litre is 0.30 rupee. And for
the distribution from the distributor to retailer the cost is as per the kilometre of distance
and number of litres tank. The farthest area such as varachha, vesu will be charged 0.20
rupee per litre, citylight and athwagate will be charged 0.15 rupee per litre of tank, bhagal
and palanpur patiya will be charged 0.10 rupee per litre. These charges of delivery are as
per the on-going market rate. The major bottleneck in the process is the moulding process
which takes maximum time and a way needs to be found out to reduce it as it increases
the lead time as well. Error in the tank is identified by filling water till a certain level in
the tank and if a tank with a hole is delivered then welding service is given to the
customer.

6.3 Process analysis:

Machine will be used for the production will be rock and roll machine, pulveriser,
molder, overhead hoist, trolley and extruder. Molder and rock and roll machine will be
made and other machine will be bought from outside determining cost aspect. Processing
time for 500 and 1000 litre tanks is 50 minutes where 4 tanks are moulded at a time and
lead time is one day. And for tanks of more litres on an average one hour to one and a
half hour is taken with 2-3 days lead time. We will have 15 tanks of 500 and 1000 ltr,
will have 10 tanks of 1500 ltr and 7 tanks of 2000 ltr in our warehouse as finished
product. After the tank is cooled down either through quench or normal cooling, water is
filled in the tank to check for any defect till certain level to see if the tank has hole or not.

6.4 Structure analysis:

Distribution structures we have used ease mid-point method. The flow of the delivery of
the product is from manufacturer to distributor at distribution centre and further from
distributor to retailer and to the customer.

6.5 Benchmarking:

Benchmark we have set that our product have durability of 20 - 25years and we are also
giving warranty of 10 years. Our product is highly reliable, durable and has high
sustainability to resist against any kind of weather conditions.