Services Offered by liwenting

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									 TRAINING BOOKLET RELIGARE


 WAREHOUSING CONCEPT

Exchange Accredited Warehouse


Services Offered:

The warehouses will offer services for selected agri-commodities. The services will
include unloading, classification, storage and out-loading. Inspection and testing by
independent certifying agencies of international reputation will be available for product
classification and quality testing.



Warehouse:

Until the emergence of national level commodity Exchange warehousing was seen as a
necessary but relatively unprofitable activity, and therefore there comes centralise to that
of CWC, SWC & FCI. Moreover, the presence of the private sector was seen as a very
little contributor to make availability of produce for storage.

In India the warehousing system is not adequate to meet challenging requirement.
Central and state government controlled warehouses are the major providers of agri –
produce storage facilities. These entire factors helped in emergence of nation level
Warehouse management system. There is a lack of minimum standards in procedures,
design and management of the warehouses. The warehousing system had to,

a) Implement its own methods of assessing warehouse quality &
b) Were depend entirely upon general law in the event of non – performance by a
   warehouse.

Reliability and efficiency of the current set of warehouses were another factors of
concern. Ideally it was desirable that warehouses provide a performance guarantee
assuring that the quantity/quality of goods on the receipts matches with those in the
warehouse. Therefore this was required to increase number of such kind of warehouses
which will met the standard fixed by NBHC.

Apprehension about poor storage conditions for the commodities causes owners to
avoid using warehouses with the higher-grade material. The emergence of scientific
testing and grading processes would lead to an acceptance of private warehouse. With a
view to improve these requirements of the system/chain NBHC was formed. The
formation of NBHC is welcomed by different sectors of the industry.

NBHC will provide the necessary expertise to the warehouse owner for managing
commodities up to international standards. Various aspect of commodity management
like unloading, storage it will include quality testing and certification, fumigation of




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commodities as well as warehouse, pest control, gradation and outloding of commodities
will be covered under the warehouse management techniques.

NBHC would lay emphasis on professional quality warehouse and commodity
management, which is supported with latest storage, preservation and protection
techniques through latest available infrastructure.


Quality Certification Agencies:

The Quality certification agency in association with NBHC will conduct technical
inspection of the warehouses which is selected to ensure that the warehouse / storage
facility meets NBHC standards and provide atmosphere to stock specific commodities.

The quality certification agency will draw samples of the commodities stocked in NBHC
accredited warehouses across the country to ensure that such stocks meet NBHC
standards. The Quality Certification agency will also ensure laying down the practices
and techniques to draw correct sampling.

The agency will also recommend the fumigation programme, which will depend upon the
nature of commodity, internal environment of the warehouse, the geographical location
and weather condition of the region.

Quality Certification Agency will provide a performance guarantee assuring that the
quantity/quality of goods on the receipts matches with those in the warehouse.

Logistics

Transportation is an essential and a major function of warehousing ecosystem that
creates time and place utility in goods. It is virtually inconceivable in today's economy for
a warehouse to function without the aid of transportation.

Distribution and logistics is the nerve and very important for the success of the
Warehouse Business.

First of all Logistics Managers must map the entire process in the supply chain. They
have to give in detail analysis of the cost involved in every link of the supply chain (i.e.)
from inbound logistics to warehousing to distribution center to the final delivery. The
process map of cost and others will be formulated after due consultation with the
channel partners and suppliers.

They will collect all information from the service provider, which is always better to thrash
out all the information required from both sides.




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    WAREHOUSING CONCEPT

They will tell the service provider everything about the process and supply chain
activities.

Logistic company will have to plan their entire services in such a way that it will ensure to
achieve seven Rs to the whole warehousing ecosystem:

    The Right product
    In the Right quantity
    In the Right condition
    At the Right place
    At the Right time
    For the Right customer
    At the Right cost.

In fact, the backbone of the entire supply chain is the transportation management that
makes it possible to make satisfaction to our customer.


NBHC:

NBHC provides agri-commodity quality assessment, storage, weight measurement and
commodity handling services at the point of receival into any NBHC storage facility. This
service permits a Customer to receive agri-commodity deliveries directly from Growers
into the Customer’s name at those Storage facilities nominated by NBHC.

Services offered by NBHC:

    Scientific warehouse maintenance and agri-commodity storage practices.
    Bank finance assistance for construction and renovation of warehouses.
    Instalation of V Sat terminal, which will help to get information about online stock of
     commodity.
    Bank finance assistance for lending against warehouse receipt.
    Logistic assistance.
    Training and Awareness programs.
    Research reports.




Responsibilities of NBHC:

    Receiving, storage and outturning of commodities.




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    WAREHOUSING CONCEPT

    Quality and weight inspection and certification through approved agencies.
    Fumigation of commodities for protection from infestation or contamination.

Grading and Weight:

a)      Commodities received will be identified as per specific commodity name and
        grade approved by NBHC. All deliveries will be supported by weight and
        identification documentary evidence accepted by NBHC where such evidence is
        not accompanying the goods NBHC may decline to receive goods OR shall stack
        in “private segregation” or deliverer will complete the identification and weight
        document of NBHC.

b)      Deliverer will deliver weight and commodities identification document acceptable
        to NBHC.

c)      NBHC shall check weigh (sample size will be specified) the cargo received and
        confirm commodity name and grade OR classify commodity as per approved
        grades of NBHC.

d)      Designated warehouse shall provide commodity classification services through
        services of independent inspection and testing agencies as recommended by
        NBHC.

Storage:

All grain and oil seeds will be stored by NBHC in common stack for each grade unless
specially requested by deliverer that the goods shall be stored in “private marked” area.

Fumigation:

a)      All commodities in storage will be fumigated by NBHC to protect the commodity
        in accordance with NBHC fumigation procedures/standards. For a period of 5
        days during fumigation the commodity will not be available.

b)      Fumigation will be carried out at intervals of 100 days except for the period
        December to March when fumigation period shall be 140 days.

c)      To further ensure commodity protection fumigation shall be done at intervals
        deemed necessary by NBHC without prior notice of customer.

d)      Fumigation certificate detailing treatment shall be submitted on express written
        request from the deliverer or owner of commodity.

Stock Information:




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Upon request by deliverer or owner of stack NBHC will provide the customer with
information regarding quantity and grade of commodity hold in stock.

Customer Obligation:

Service charge: The customer will agree to pay the charges applicable for the
commodity as specified periodically in the service charge schedule. The following
charges are payable by the deliverer:

        Receival/unloading (including NBHC service charge).
        Weighment charge (including NBHC service charge).
        Inspection or testing (Nil).
        Fumigation (including NBHC service charge).
        Storage (including NBHC service charge).


PROCEDURES
The procedures followed at NBHC accredited warehouses are listed below:

1.       Receival:

         1.1     Member of MCX:

                 On receipt of expression of interest for delivering and storing specified
                 commodity via fax, email or telephone NBHC will confirm such expression
                 of interest recording the following:-

                 (a)     Commodity                    (b)   Tentative date of delivery
                 (c)     Quantity                     (d)   Location
                 (e)     Service charges and
                         Collection of such charges
                         Shall be by ___________
                         receival hours

                 Members of MCX using NBHC services will have an agreement with
                 NBHC. The agreement will cover aspects involving charges and
                 settlement of dues.

         1.2     Non-members of MCX:

                 Other customers who are non-members of MCX will also be serviced and
                 such customers will be encouraged to sign an agreement OR will be




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             considered as walk-in-walk-out customers. They shall receive same
             quality service except for charges schedule. The receival procedure will
             include all aspects as 1.1 plus service charges agreement (confirming
             lean on stocks).

      1.3    Customer contacting franchise direct:

             Such customers will be franchise customers and the franchisee shall
             adopt their own system. When accepting to store commodity of such
             customers franchisee shall intimate NBHC immediately impact on space
             availability.

2.0   Confirmation to receive stocks:

      NBHC stock receipt staff will check from data available and from the respective
      franchisee about space availability. If space is available this will be provisionally
      booked and confirmation as per 1.1. Issued.




      2.1    Failure by client to deliver will inure 50% of storage as penalty. Client can
             decline delivery without penalty if delivery intension is cancelled within 7
             working days notice.

3.0   Physical Receival:

      3.1    Commodity received will be inspected and tested if necessary (e.g.
             stocked in common stack) and at the discretion of warehouse operator
             checked for weight. All receipts will be test weighed. Approved
             weighbridge docket, can be accepted and where such docket is not
             available the commodity shall be weighed (at approved weigh bridge) and
             the deliverer charged cost as per schedule of charges.

      3.2    Where commodity is weighed by the franchisee at its designated
             weighbridge. The franchisee shall be responsible for guaranteeing out-
             turn weight (less allowable shrinkage as per schedule). Where commodity
             is not weighed by the franchisee the weight is accepted in good faith and
             cargo stocked in customer specific area only. (Where common stack
             storage is accepted franchisee will weigh the cargo).

      3.3    Receival form will be completed and truck driver will sign the form as
             “proof” of delivery. Copy of receival form will be given to Truckee,
             faxed/emailed to deliverer and copy used for data entry in NBWMS stock
             control program (licensed software).




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      3.4    Identification i.e. classification and grading: NBHC shall arrange at the
             request of deliverer inspection and grading/classification of cargo at time
             of receipt. Inspection will be by independent agency and charges will be
             payable by deliverer to NBHC.

             Deliverer shall give notice of delivery as specified for different location of
             warehouses. Such notice will be sufficient to arrange independent agency
             inspection.

             If deliverer does not require classification/grading at time of receipt,
             NBHC shall require acceptable documentary evidence of product grade
             and classification. NBHC franchisee in such cases will draw samples and
             get it tested to confirm grade/quality. Deliverer will pay cost of such test.

4.0   Stacking:

      Grain and oil seed commodities will be stored either in common stacks or in
      customer specific area. Cotton will be stored in customer specific areas only.

      4.1    Common stacks:

             If commodities are stacked in common stack the commodity will be tested
             and classified within the approved product category and standards. The

             Test will be completed prior to stacking. If test shows differences in
             quality standards product will be automatically stacked in specific
             customer stack. Test report will be faxed/issued to buyers immediately
             the test results are available.

             Common stack storing facilities will be offered at designated warehouses
             where on site immediate product testing facilities are available.




      4.2    Private stack:

             Commodities will be allocated for customer specific stack depending on
             customer requirement or if product has failed to meet common stack
             specification/grade (extra charge liable).

      4.3    Fumigation:

                     All commodities received will be immediately fumigated in
                      accordance with fumigation procedures:-




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                      Fumigation using approved fumigants.

                      Fumigation is effective for 60 days during the 9 warm months and
                       for storage beyond this period product will be fumigated again
                       without any instructions or authorization from product owner.

                      Fumigation is effective for 90 days if storage is over minimum 30
                       days of cold winter days (subject to different states).

                      Fumigation record sheet will be maintained and communicated to
                       NBHC at regular intervals and not later than end of the week.




OUTTURN PROCEDURES
This service includes loading of commodities in trucks or into containers at designated
warehouses.

Out loading checklist will include:


      Out loading instruction from commodity owner (check title of commodity)

      Check receival, storage, fumigation and outloading charges are paid or payable.
           o   Walk in customer charges must be paid before commodity can be
               outloaded.
           o   Approved customer (members of MCX) will have operating account and
               this should be checked whether current.

      Out loading delivery report (docket) will be issued to owner, NBHC Head Office
       and copy to truck driver. The docket format is attached.

Out loading Specifications (Quality & Quantity):


Party accepting delivery (the buyer) of cargo may chose to arrange inspection of cargo
at costs as per NBHC’s schedule of fees with inspection agency OR the buyer may
arrange their own inspection agency.
The quality specifications and quantity of outturned cargo will be as per agreed
specifications, i.e. the quality specifications will be same as receipted if time in storage is
less than 2 months and quantity will be after factoring shrinkage.




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In storage title transfer:

The service includes title transfer for commodities in stock.


This prescribed procedure will be:

         Signed document from deliverers authorized staff or owner himself for the
          commodity (name, grade, specifications) and weight.

         Signed document from buyer accepting the commodity (name grade
          specification) weight and specification and shrinkage.

         NBHC franchisee will issue stock delivery docket to first owner and issue new
          receipt to the new owner. This new receipt will be faxed to new buyer.
Note: In the near future stock warrants will be issued should deliverer require it. Such
      warrants will be, it is anticipated, bankable and tradable.

          When such warrants are issued it will be necessary to ensure same are returned
          before title transfer can take place or before they can be out loaded.




SCHEDULE OF CHARGES AND COLLECTION
PROCEDURE
 Sl.
 No.                   Item                       Rate                 Billing flow

 1.       Receival :                      Rs.____/- per bag
                                                              Franchisee    to     NBHC     to
 2.       Storage:                                            Customer (deliverer)


 3.1      Inspection (including testing
          SGS and weight)
                                                              SGS to NBHC to Customer
 3.2      Testing: SGS (when
          inspection is not done)




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 3.3      Weighment–weighbridge                              Weighbridge to franchisee to
          Charge                                             NBHC to Customer

 4.       Out loading :                Rs.____/- per bag     Franchisee    to   NBHC        to
                                                             Customer
 5.       Fumigation:                                        Franchisee    to   NBHC        to
                                                             Customer
 6.       Handling and                                       NBHC to Customer
          Storage Insurance
 7.       Service tax:

* NBHC levy a charge of approx. 10% on all charges except inspection and weighment charge
  (billed to customers on actuals).

Collection of Dues:

* NBHC registered customers will have agreement for payment of NBHC charges:

 a)       Either direct debit arrangement whereby charges are debited within 48 hours (or
          more) to customers.

 b)       OR Operating account with agreed credit limits and customers settle account
          monthly.

          * NBHC walk in customers will make payment before taking delivery and where
            applicable within 10 days of receipt of goods settle receival charges (including
            Fumigation)

POLICY STATEMENT

1.        Commodity Weight and quality:

          NBHC customer shall expect NBHC to be responsible for weight and
          quality of product within the standards established by NBHC. The
          standards will be established for each commodity and these shall define
          shrinkage (i.e. permissible weight loss) and product receival and outturn
          quality parameters.


         NBHC shall provide the customer weight assurance with back-to-back
          weight assurance from the warehouse operator.




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WAREHOUSING CONCEPT

    NBHC shall provide the customers quality assurance for agreed period of
     time (60/90 days) as per established standards of NBHC. Independent
     inspection agency shall be assigned inspection and certification
     responsibility for quality specifications.

    For variances in quality specifications within specified time (60/90 days)
     NBHC shall investigate the issue along with the original inspection
     agencies.

        -   If cause for variance is attributed to storage negligence then
            warehouse operator shall be responsible.
        -   If cause for variance is due to inspection error the inspection
            agency shall be responsible. AND
        -   If the cause for variance is attributed to incorrect storage guidelines
            (issued by NBHC), then NBHC shall be responsible.




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              Booklet Developed & Designed by:

                          Abhishek Porwal
                   Product Development Analyst
                    Religare Commodities Ltd.
                     Devika Tower, New Delhi
                E-mail: abhishek.porwal@religare.in
            Office Phone: 011-30815157, 09313963811




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