Restructuring of logistics for reliance industries limited: Hazira manufacturing division-Reliance Industries Ltd: Hazira.

Abstract

After completion of Phase 2 polymer plants the Hazira site of Reliance Industries will be required to despatch solid polymers to the tune of 1 million tonnes plus. The work to install the required hardware/infrastructure is already under implementation. An attempt has been made here to see the inventory fluctuations of one of the finished polymers (PVC) and to analyse the same. It was observed that P.V.C. inventory varied from 3 days of production to in excess of 30 days of production. This results in avoidable loss of capital. Also after meeting with customers it was confirmed that they too store raw material (PVC) in excess of 20 days of consumption of their consumption. Based on above findings and after analyses of despatch patterns, a method has been suggested to overcome these fluctuations to some extent Its suggested to start differentiating between large/regular customers and small/irregular customers. The large/regular customers should be discussed with and an understanding be reached such that their requirements are despatched on daily basis. As a result of this, the tendency to keep stocks due to sudden demands will also be substantially curtailed An estimated Rs.3.5 crores/year saving potential exists PVC logistics if the above mentioned programme is implemented successfully. Further to this, the saving potential exists for other polymers like polyethylene, polypropylene, PFY and PSF etc.