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SUMMER INTERNSHIP PROJECT REPORT
ON
“CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO
CARE CONTAINER LINES PRIVATE LIMITED”
SUBMITTED TO
ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI
IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
POST GRADUATE DIPLOMA IN MANAGEMENT
UNDER THE GUIDANCE OF
(Dr. DEVENDRA BAHADUR)
SUBMITTED BY:
(DEEPAK KUMAR)
2K14IB01
PGDM BATCH 2014-2016
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CERTIFICATE
This is to certify that Mr. Deepak Kumar, Roll number 2K14IB01, a student of PGDM in Asia
Pacific Institute of Management, New Delhi, has carried out the Summer Internship Project work
presented in this report titled “CLIENT SURVEY ON LOGISTICS REQUIREMENTS
WITH SPECIAL EMPHASIS TO CARE CONTAINER LINES PRIVATE LIMITED” for
the award of Post Graduate Diploma in Management for the Academic Batch 2014-16, under
my guidance.
(Signature)
Date:
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DECLARATION
I, DEEPAK KUMAR, hereby declare that the project work entitled “CLIENT SURVEY ON
LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO CARE CONTAINER
LINES PRIVATE LIMITED” submitted towards partial fulfillment of requirements for the
award of Post Graduate Diploma in Management is my original work and the dissertation has
not formed the basis for award of any degree, associate ship, fellowship or any similar title to
the best of my knowledge.
Place: NEW DELHI (Signature of Student)
Date: (DEEPAK KUMAR)
Roll No: 2K14IB01
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ACKNOWLEDGEMENT
It is my proud privilege to release the feelings of my gratitude to several persons who helped me
directly or indirectly to conduct this project work. I express my heart full in debt and owe a deep
sense of gratitude to my teacher and my faculty guide Prof. DR. DEVENDRA BAHADUR, Asia
Pacific Institute of Management. Corporate guide Mr. SUSHANT ROY, Branch Manager,
CARE CONTAINER LINES PRIVATE LIMITED, New Delhi and Mr. PIYUSH TIWARI,
Senior Marketing Manager, CARE CONTAINER LINES PRIVATE LIMITED, New Delhi, for
their sincere guidance and inspiration in completing this project.
I am extremely thankful to faculty members of the Asia Pacific Institute of Management for their
coordination and cooperation and thankful to Prof. DR. DEVENDRA BAHADUR for his kind
guidance and encouragement.
I am also extremely thankful to all those persons who have positively helped me and Business
Clients who responded my questionnaire, around whom the whole project cycle revolves.
I also thank all my friends who have more or less contributed to the preparation of this project
report. I will be always indebted to them.
Thanking you
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PREFACE
In our two years diploma program of POST GRADUTE DIPLOMA IN MANAGEMENT of
there is provision for doing summer internship after III semester. The essential purpose of this
project is to given an exposure and detailed outlook to the student of the practical concepts,
which they already studied research. For this purpose, I was assigned the project for the
“CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO
CARE CONTAINER LINES PRIVATE LIMITED” in CARE CONTAINER LINES PRIVATE
LIMITED by my project mentor. It is a matter of great privilege to get training from CARE
CONTAINER LINES PRIVATE LIMITED, one of the largest Logistics Services Provider of its
kind.
The project lasted for a period of eight weeks; it was informative, interesting, inspiring and
challenging task.
I hope this report will provide an experiment outlook to the dynamic functioning in the
LOGISTICS department in Export/Import sector.
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CONTENT
S. No. Topics Page no.
Title Page 1
Certificate 2
Declaration 3
Acknowledgement 4
Preface 5
Executive Summary 8
List of tables 9
List of graphs 10
I. CHAPTER- 1
1.1 Company profile 11
1.2 Introduction 12
1.3 Overview 12
II. CHAPTER-2 13-30
2.1 Literature Review 31
III. CHAPTER-3 31-40
3.1 Research Methodology 41
3.2 Problem of Study 42
3.3 Objectives of the Study 42
3.4 Sample Size 42
3.5 Sampling Technique 42
3.6 Relevance of the Study 42
3.7 Data Collection 42
3.8 Data Analysis 43
3.9 Limitation of Study 43
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IV.
CHAPTER-4
44
4.1 Data Analysis and Interpretation 44-53
V. CHAPTER-5 54
5.1 Findings 55
5.2 Suggestions and Recommendations 56
5.3 Conclusion 57
5.4 Bibliography 58
5.5 Annexure (questionnaire) 59
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EXECUTIVE SUMMARY
Care Container Lines Private Limited is a Logistics and Supply chain Service Provider. The
company over the years has established itself as a Specialist Operator in India with a large
customer base. During this time, the strength of our services and overseas contact coupled with
ingenuity of our thought process has helped us to evolve a first time in the industry.
This study provides the systematic survey of various Logistics managers understanding their
Logistics requirements from the clients who deal in providing the Logistics services across the
globe. During the course of study the logistics managers were not ready to disclose their data,
however the information given by them was limited only.
The Industrial Areas which were assigned for collecting the data and filling the questionnaire
was almost from every sector which deal in Export and Import globally. The requirements of
logistics managers of Export and Import Companies were mainly based on different parameters
such as Rates, Timely Service and Company Background. The most preferred parameter was
‘rates’ of Export and Import.
Since a large part of the logistics network that India needs has yet to be built, the country has a
chance to add infrastructure optimally to meet the growing demand. The report finds that to
achieve this goal, India must pursue an integrated and coordinated approach that not only closely
aligns the development of each mode—railways, roads, and waterways—with the country’s
needs but also makes better use of existing assets.
This will require increasing the railways’ share of logistics infrastructure investments from
about 40 percent currently to 50 percent. Building a logistics infrastructure capable of handling
rising freight traffic more efficiently presents opportunities for user industries and for
infrastructure developers and construction companies, among others, the report finds.
After going through the survey of all the EXIM companies the percentage of imports is more
than that of exports. The most imported product is Electronic Product in India whereas Rice and
Garments are heavily exported to Middle East from India. The EXIM companies have their
different INCOTERMS Policies which vary the rates of Export and Import.
The study focuses on three major issues – present extent of usage of third party logistics services,
reasons for outsourcing and impact of usage of third party logistics services on business results.
The paper reveals that most 3PL users are satisfied with the current level of services provided
by 3PL service providers as it has led to a positive impact on business results. As a result, the
usage of third party logistics services is likely to increase substantially in the future.
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List of tables
S. No. Topics Page no.
I. Type of shipping companies in EXIM Sector 45
II. Type of shipments 46
III. Shipping Companies dealing in Export, Import and Both 47
IV. List of Heavily Imported Items 48
V. List of heavily Exported Items 49
VI. Shipment Terms Preferences 50
VII. Consideration for finalizing shipments 51
VIII. Change of Existing Forwarder or Shipping Line 52
IX. Change of Customs House Agent 53
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List of figures
S. No. Topics Page no.
I. Customs Clearance 15
II. Logistics Activities 16
III. Type of Containers 17
IV. Logistics Museums 25
V. Shipping Container Dimensions 26-27
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CHAPTER: 1
AN OVERVIEW OF
CARE CONTAINER LINES PRIVATE
LIMITED
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COMPANY PROFILE
Company Name Care Container Lines Private Limited
Founded In 2004
Slogan All Services under one roof
Chairperson Mr. Kaushik Roy
Type of Business Logistics Services
Head office Kolkata
Other Offices New Delhi, Mumbai, Chennai, Ludhiana,
Malaysia, Nepal, Singapore
Website www.carecontainerlines.net
INTRODUCTION
Care Container Lines Private Limited is a Logistics and Supply chain Service Provider. The
company over the years has established itself as a Specialist Operator in India with a large
customer base. It now has offices in various ports and important ICD’s servicing the logistics
requirements of Importers and Exporters throughout the country.
The company strives to provide very high standards of shipping solutions to their customers
using this global network and well established Agents worldwide. Our offices in India and our
International Network work in close cooperation linking this Globe in close unity.
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OVERVIEW
History of Inception:
The journey since 2004 has set in motion the belief in overcoming all issues without
compromising on Service. During this time, the strength of our services and overseas contact
coupled with ingenuity of our thought process has helped us to evolve a first time in the industry.
Single Window Clearance for Imports from any part of the Globe. The market has not been
immune to such uniqueness in services and this is reflected by our standard monthly average of
handling 250 TEU’s LCL shipment in the 4 Metros of the country. With undisputed leadership
in Import/Export LCL shipment this is now actively working towards complete Logistics
Solutions by both Air and Sea with complete operational infrastructure of its Own Offices at all
Metros and Port Account to match our operational efficiency.
In addition to keeping updated on a regular basis regarding cargo status, it is keenly observant
regarding the shortest possible transit time for keeping business interest on a high priority. It is
committed to see people being able to take delivery of their cargoes in the shortest possible time
and work tirelessly to overcome the issues created by congestions in the port and warehouses.
All these are possible because of our tireless pursuit to achieve perfection and our ingrained
philosophy in maintaining excellent rapport with the officialdom.
The revolution in trade by transportation of cargoes through containers started as early as in 1968
by MacLean, a humble truck driver at that time. Over a period of time innumerable developments
and modification has driven the trade into a high intensity growth curve on a consistent basis.
In this background A Team of Young and Highly Trained Professionals all comfortably
employed in the leading organization of the trade came together and gave birth to
Care Container Lines Kolkata which is now known as Care Container Lines Private Limited.
Company also possess the various port accounts in major ports in India like KOLKATA,
HALDIA, NSICT, GTI, JNPT, ICD MULUND, CHENNAI, ICD DELHI PPG, TKD, LONI,
FARIDABAD, DADRI, GARHI HARSARU, PATLI, ICD JAIPUR, ICD ANKLESWAR, ICD
LUDHIANA, MUNDRA, KANDLA, PIPAVAV, SINGAPORE, MALAYSIA WEST PORT.
CARE CONTAINER LINES SDN BHD is PRINCIPAL in Malaysia and H/O at KOLKATA
where it has own containers for Bangkok, Leam Chabang, Yangoon, Port Kelang, Pasir Gudang,
Pennang, Hong Kong, Dubai, Jakarta, Singapore, Shanghai, Ningbo, Tianjin, Ho Chi Minh,
Haiphong, Nhavasheva, Mundra, ICD Ludhiana, ICD Ankleswar, ICD Mulund, ICD Garhi
Harsaru, ICD Patli, ICD Jaipur, ICD TKD, ICD PPG, ICD Dadri, ICD Faridabad Loni.
Bandarabbas, Shymkant, Tashkent, Almaity, Baku, Karachi, Colombo, Ashghabat, Nukus, and
Ankran & Chittagong apart from this we are providing our services from World Wide by the
annual rate contract with the Premium Liners like HANJIN, MAERSK, APL, K-LINE, and
MSC. It is armored with worldwide agents along with their agency to bring any cargo from any
part of the GLOBE with exclusive services in terms to provide you A SINGLE WINDOW
services.
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Logistics Management:
Logistics management is that part of the supply chain that plans, implements, and controls the
efficient, effective forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet customer
requirements. A professional working in the field of logistics management is called a logistician.
Services:
During its Nine years of operation, CCPL has developed itself into an integrated Logistics
service provider with core strengths in:
 Air Freight Consolidation
 Ship and Aircraft Chartering
 Ocean Freight
 Project Shipment
 Customs Clearance
 Non Vessel Operating Common Carrier(NVOCC)
Port Agency Services:
 Provide Principles with accurate estimated D/A before vessel’s arrival.
 Actual D/A updated with Port Tariff dispatched to principles within reasonable period
from vessel’s sailing.
 Furnish principles with port facilities, port restrictions and regulations.
 Provide master with berthing prospects as given by the Port Authority.
 Update principles and master with accurate reports/data Berthing - Arrival-Departure –
Operation Prospects – weather conditions
 Complete Cargo documents/facts.
 Dispatch final statement of account to principles with original invoices on monthly basis.
 Cargo is imported and exported to from major destinations, i.e. East – China – Middle
East – North Europe – U.S.A – Mediterranean Ports.
Bunkering:
Being in direct contact with the major bunker suppliers in India in addition to its strong market
position, company ensures safe delivery of quality bunker products at competitive prices. They
are available for orders round the clock including holidays furnishing their principles with the
latest internationally posted prices. The most competitive discounts on large orders.
The best payment and Credit terms and their offices place people’s stem quickly and directly
with suppliers and safeguards and coordinate local delivery with 24 hours. Communication and
the cooperation of local agents. We are able to accept and place stems at short notice.
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Inland Transportation and Project:
Care Container Lines Pvt. Ltd. operates an extensive fleet of trucks/trailers to enable us to meet
the increasing demand of the Indian Market. The structure of our fleet makes it possible to carry
almost all sizes of over-dimensioned cargo/ super containers, bulk cargoes. It operates all over
India.
Process involved in Inland Transportation:
 Cargo Pick up facility round the clock by own fleets of close body trucks.
 Transportation of air Cargo, Custom Cleared in hinterlands to International airport.
 Transport of Goods from port of discharge to hinterland destination in conjunction with
their overseas partners
 Offers “door to door” delivery of cargoes
Custom Clearance:
This company has unique expertise in handling and clearing of all kinds of commodities Import
and Export efficiently.
All shipments irrespective of size are handled equally efficiently and with utmost care and
dispatched in the shortest possible time.
Their customs clearance services include:
 Customs Documentation
 Carting and Receiving Goods
 Examining of Shipments
 Handling of stuffing and De – Stuffing at ports
 ICD’s and customs warehouse
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Consolidation service:
It is one of the major activities in care container Lines Pvt. Ltd. It offers weekly LCL Service to
more than 49 destinations worldwide through direct calls for Calcutta, Mumbai and Delhi.
Buyer consolidation program is quite often tailored, apart from their standard manual, logistics
services and order tracking as well. Parcels are tracked smoothly by their centered head office to
keep their partners well informed about cargo status just through their efficient communication
network. They are able to handle our shipments from any place into India by Air and Sea with
attractive rates and tracking services to ensure shipment under control and arrival in Time. They
promise “We will turn our experience to your advantages”.
Their consolidation service offers the advantages of competitive Freight rates, Competitive
insurance Premiums, reduced risks of pilferage and reduced packing costs.
They make all assignments for combining of goods at origin and separation of cargo at
destination. This means that people can enjoy economic benefits of consolidated shipments,
without the concerns of separating our goods at destination.
Logistic Activities:
The employees of this company introduce themselves as specialists in International freight
forwarding and all kinds of logistics activities with vast experience of handling all kinds of cargo
for both Imports and Exports.
Having an extensive network of associates/agents on International Front.
They are not limited to any carrier or service. Their knowledge will afford the best possible
routing and rates at any given moment. They have the most efficient and effective answers to
your different questions. They offer bonded warehousing containerization export packing and
creating and inland transportation coordination. Under their management, People are assured of
single company control of our shipments throughout India and Worldwide.
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Types of containers (DRY, FLAT RACK, OPEN TOP)
CONTAINER SPECIFICATION:
1. Dry Storage Container
The most commonly used shipping containers; they come in various dimensions standardized by
ISO. They are used for shipping of dry materials and come in size of 20ft & 40 ft.
2. Flat Rack Container
With collapsible sides, these are like simple storage shipping containers where the sides can be
folded so as to make a flat rack for shipping of wide variety of goods.
3. Open Top Container
With a convertible top that can be completely removed to make an open top so that materials of
any height can be shipped easily.
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Logistics Fields:
 Procurement logistics: It consists of activities such as market research, requirements
planning, make-or-buy decisions, supplier management, ordering, and order controlling.
The targets in procurement logistics might be contradictory: maximizing efficiency by
concentrating on core competences, outsourcing while maintaining the autonomy of the
company, or minimizing procurement costs while maximizing security within the supply
process.
 Distribution logistics: It has, as main tasks, the delivery of the finished products to the
customer. It consists of order processing, warehousing, and transportation. Distribution
logistics is necessary because the time, place, and quantity of production differs with the
time, place, and quantity of consumption.
 Disposal logistics: It has as its main function to reduce logistics cost(s) and enhance
service(s) related to the disposal of waste produced during the operation of a business.
 Reverse logistics: It denotes all those operations related to the reuse of products and
materials. The reverse logistics process includes the management and the sale of
surpluses, as well as products being returned to vendors from buyers. Reverse logistics
stands for all operations related to the reuse of products and materials. It is "the process
of planning, implementing, and controlling the efficient, cost effective flow of raw
materials, in-process inventory, finished goods and related information from the point of
consumption to the point of origin for the purpose of recapturing value or proper disposal.
More precisely, reverse logistics is the process of moving goods from their typical final
destination for the purpose of capturing value, or proper disposal. The opposite of reverse
logistics is forward logistics.
 Green Logistics: It describes all attempts to measure and minimize the ecological impact
of logistics activities. This includes all activities of the forward and reverse flows. This
can be achieved through intermodal freight transport, path optimization, vehicle
saturation and city logistics.
 RAM Logistics: It (see also logistic engineering) combines both business logistics and
military logistics since it is concerned with highly complicated technological systems for
which Reliability, Availability and Maintainability are essential, ex: weapon systems and
military supercomputers.
 Asset Control Logistics: Companies in the retail channels, both organized retailers and
suppliers, often deploy assets required for the display, preservation, promotion of their
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products. Some examples are refrigerators, stands, display monitors, seasonal equipment,
poster stands & frames.
 Emergency logistics: It is a term used by the logistics, supply chain, and manufacturing
industries to denote specific time-critical modes of transport used to move goods or
objects rapidly in the event of an emergency. The reason for enlisting emergency logistics
services could be a production delay or anticipated production delay, or an urgent need
for specialized equipment to prevent events such as aircraft being grounded (also known
as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure.
Emergency logistics services are typically sourced from a specialist provider.
 Production Logistics: The term production logistics describes logistic processes within
a value adding system (ex: factory or a mine). Production logistics aims to ensure that
each machine and workstation receives the right product in the right quantity and quality
at the right time. The concern is not the transportation itself, but to streamline and control
the flow through value-adding processes and to eliminate non–value-adding processes.
Production logistics can operate in existing as well as new plants. Manufacturing in an
existing plant is a constantly changing process. Machines are exchanged and new ones
added, which gives the opportunity to improve the production logistics system
accordingly. Production logistics provides the means to achieve customer response and
capital efficiency.
Production logistics becomes more important with decreasing batch sizes. In many industries
(e.g. mobile phones), the short-term goal is a batch size of one, allowing even a single customer's
demand to be fulfilled efficiently. Track and tracing, which is an essential part of production
logistics due to product safety and reliability issues, is also gaining importance, especially in the
automotive and medical industries.
Business Logistics:
One definition of business logistics speaks of "having the right item in the right quantity at the
right time at the right place for the right price in the right condition to the right customer".
Business logistics incorporates all industry sectors and aims to manage the fruition of project life
cycles, supply chains, and resultant efficiencies.
The term "business logistics" has evolved since the 1960s due to the increasing complexity of
supplying businesses with materials and shipping out products in an increasingly globalized
supply chain, leading to a call for professionals called "supply chain logisticians".
In business, logistics may have either an internal focus (inbound logistics) or an external focus
(outbound logistics), covering the flow and storage of materials from point of origin to point of
consumption (see supply-chain management). The main functions of a qualified logistician
include inventory management, purchasing, transportation, warehousing, consultation, and the
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organizing and planning of these activities. Logisticians combine a professional knowledge of
each of these functions to coordinate resources in an organization.
There are two fundamentally different forms of logistics: one optimizes a steady flow of material
through a network of transport links and storage nodes, while the other coordinates a sequence
of resources to carry out some project (ex: restructuring a warehouse).
Nodes of a distribution network:
The nodes of a distribution network include:
 Factories where products are manufactured or assembled
 A depot or deposit is a standard type of warehouse thought for storing merchandise (high
level of inventory).
 Distribution centers are for order processing and order fulfillment (lower level of
inventory) and also for receiving returning items from clients.
 Transit points are built for cross docking activities, which consist in reassembling cargo
units based on deliveries scheduled (only moving merchandise).
 Traditional retail stores of the Mom and Pop variety, modern supermarkets,
hypermarkets, discount stores or also voluntary chains, consumer cooperative, groups of
consumer with collective buying power. Note that subsidiaries will be mostly owned by
another company and franchisers, although using other company brands, actually own
the point of sale.
There may be some intermediaries operating for representative matters between nodes such as
sales agents or brokers.
Logistic families and metrics:
A logistic family is a set of products which share a common characteristic: weight and volumetric
characteristics, physical storing needs (temperature, radiation,), handling needs, order frequency,
package size, etc. The following metrics may be used by the company to organize its products
in different families.
Physical metrics used to evaluate inventory systems include stocking capacity, selectivity,
superficial utilization, volumetric utilization, transport capacity, transport capacity utilization.
Monetary metrics used include space holding costs (building, shelving and services) and
handling costs (people, handling machinery, energy and maintenance).
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Other metrics may present themselves in both physical and monetary form, such as the standard
Inventory turnover.
Unit loads are combinations of individual items which are moved by handling systems, usually
employing a pallet of normed dimensions. Handling systems include: trans-pallet handlers,
counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers, and AGV
and stacker handlers. Storage systems include: pile stocking, cell racks (either static or movable),
cantilever racks and gravity racks.
Order processing is a sequential process involving: processing withdrawal list, picking (selective
removal of items from loading units), sorting (assembling items based on destination), package
formation (weighting, labeling and packing), and order consolidation (gathering packages into
loading units for transportation, control and bill of lading).
Picking can be both manual and automated. Manual picking can be both man to goods, i.e.
operator using a cart or conveyor belt, or goods to man, i.e. the operator benefiting from the
presence of a mini-load ASRS, vertical or horizontal carousel or from an Automatic Vertical
Storage System (AVSS). Automatic picking is done either with dispensers or DE palletizing
robots. Sorting can be done manually through carts or conveyor belts, or automatically through
sorters.
Transportation
Cargo, i.e. merchandise being transported, can be moved through a variety of transportation
means and is organized in different shipment categories. Unit loads are usually assembled into
higher standardized units such as: ISO containers, swap bodies or semi-trailers. Especially for
very long distances, product transportation will likely benefit from using different transportation
means: multimodal transport, intermodal transport (no handling) and combined transport
(minimal road transport). When moving cargo, typical constraints are maximum weight and
volume. Operators involved in transportation include: all train, road vehicles, boats, airplanes
companies, couriers, freight forwarders and multi-modal transport operators.
Merchandise being transported internationally is usually subject to the Incoterms standards
issued by the International Chamber of Commerce.
Configuration and management:
Similarly to production systems, logistic systems need to be properly configured and managed.
Actually a number of methodologies have been directly borrowed from operations management
such as using Economic Order Quantity models for managing inventory in the nodes of the
network. Distribution resource planning (DRP) is similar to MRP, except that it doesn't concern
activities inside the nodes of the network but planning distribution when moving goods through
the links of the network.
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Traditionally in logistics configuration may be at the level of the warehouse (node) or at level of
the distribution system (network).
Regarding a single warehouse, besides the issue of designing and building the warehouse,
configuration means solving a number of interrelated technical-economic problems:
dimensioning rack cells, choosing a palletizing method (manual or through robots), rack
dimensioning and design, number of racks, number and typology of retrieval systems (e.g.
stacker cranes). Some important constraints have to be satisfied: fork and load beams resistance
to bending and proper placement of sprinklers. Although picking is more of a tactical planning
decision than a configuration problem, it is important to take it into account when deciding the
racks layout inside the warehouse and buying tools such as handlers and motorized carts since
once those decisions are taken they will work as constraints when managing the warehouse, same
reasoning for sorting when designing the conveyor system and/or installing automatic
dispensers.
Configuration at the level of the distribution system concerns primarily the problem of location
of the nodes in a geographic space and distribution of capacity among the nodes. The first may
be referred to as facility location (with the special case of site selection) while the latter to as
capacity allocation. The problem of outsourcing typically arises at this level: the nodes of a
supply chain are very rarely owned by a single enterprise. Distribution networks can be
characterized by numbers of levels, namely the number of intermediary nodes between supplier
and consumer:
 Direct store delivery, i.e. zero levels
 One level network: central warehouse
 Two level network: central and peripheral warehouses
This distinction is more useful for modeling purposes, but it relates also to a tactical decision
regarding safety stocks: considering a two level network, if safety inventory is kept only in
peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory
is distributed among central and peripheral warehouses it is called an independent system (from
suppliers). Transportation from producer to the second level is called primary transportation,
from the second level to consumer is called secondary transportation.
Although configuring a distribution network from zero is possible, logisticians usually have to
deal with restructuring existing networks due to presence of an array of factors: changing
demand, product or process innovation, opportunities for outsourcing, change of government
policy toward trade barriers, innovation in transportation means (both vehicles or thoroughfares),
introduction of regulations (notably those regarding pollution) and availability of ICT supporting
systems (e.g. ERP or e-commerce).
Once a logistic system is configured, management, meaning tactical decisions, takes place, once
again, at the level of the warehouse and of the distribution network. Decisions have to be made
under a set of constraints: internal, such as using the available infrastructure, or external, such as
complying with given product shelf life and expiration dates.
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Picking efficiency varies greatly depending on the situation. For man to goods situation, a
distinction is carried out between high level picking (vertical component significant) and low
level picking (vertical component insignificant). A number of tactical decisions regarding
picking must be made:
 Routing path: standard alternatives include transversal routing, return routing, midpoint
routing and largest gap return routing
 Replenishment method: standard alternatives include equal space supply for each product
class and equal time supply for each product class.
 Picking logic: order picking vs. batch picking
At the level of the distribution network, tactical decisions involve mainly inventory control and
delivery path optimization. Note that the logistician may be required to manage the reverse flow
along with the forward flow.
Warehouse management and control:
Although there is some overlap in functionality, warehouse management systems (WMS) can
differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly
activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor
supervisor, working in real time to get the job done by the most effective means. For instance, a
WMS can tell the system that it is going to need five of stock-keeping unit (SKU) A and five of
SKU B hours in advance, but by the time it acts, other considerations may have come into play
or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real
time and adapting to the situation by making a last-minute decision based on current activity and
operational status. Working synergistically, WMS and WCS can resolve these issues and
maximize efficiency for companies that rely on the effective operation of their warehouse or
distribution center.
Logistics outsourcing:
Logistics outsourcing involves a relationship between a company and an LSP (logistic service
provider), which, compared with basic logistics services, has more customized offerings,
encompasses a broad number of service activities, is characterized by a long-term orientation,
and thus has a strategic nature. Outsourcing does not have to be complete externalization to a
LSP, but can also be partial:
 A single contract for supplying a specific service on occasion
 Creation of a spin-off
 Creation of a joint venture
Third-party logistics (3PL) involves using external organizations to execute logistics activities
that have traditionally been performed within an organization itself. According to this definition,
third-party logistics includes any form of outsourcing of logistics activities previously performed
in house. For example, if a company with its own warehousing facilities decides to employ
external transportation, this would be an example of third-party logistics. Logistics is an
emerging business area in many countries.
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The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting
(now Accenture) as an integrator that assembles the resources, planning capabilities, and
technology of its own organization and other organizations to design, build, and run
comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider
targets a single function, a 4PL targets management of the entire process. Some have described
a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house
agents, and others, essentially taking responsibility of a complete process for the customer.
Logistics Automation:
Logistics automation is the application of computer software and/or automated machinery to
improve the efficiency of logistics operations. Typically this refers to operations within a
warehouse or distribution center, with broader tasks undertaken by supply chain management
systems and enterprise resource planning systems.
Industrial machinery can typically identify products through either Bar Code or RFID
technologies. Information in traditional bar codes is stored as a sequence of black and white bars
varying in width, which when read by laser is translated in a binary sequence, which according
to fixed rules can be converted in a decimal number. Sometimes information in a bar code can
be transmitted through radio frequency, more typically radio transmission is used in RFID tags.
An RFID tag is card containing a memory chip and an antenna which transmits signals to a
reader. RFID may be found on merchandise, animals, and vehicles and people as well.
Logistics: profession and organizations:
A logistician is a professional logistics practitioner. Professional logisticians are often certified
by professional associations. One can either work in a pure logistics company, such as a shipping
line, airport, or freight forwarder, or within the logistics department of a company. However, as
mentioned above, logistics is a broad field, encompassing procurement, production, distribution,
and disposal activities. Hence, career perspectives are broad as well. A new trend in the industry
are the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services.
Some universities and academic institutions train students as logisticians, offering undergraduate
and postgraduate programs. A university with a primary focus on logistics is Kühne Logistics
University in Hamburg, Germany. It is nonprofit and supported by Kühne-Foundation of the
logistics entrepreneur Klaus Michael Kühne.
The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom
in 1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional
bodies or institutions for the logistics and transport sectors that offers professional qualifications
or degrees in logistics management. CILT programs can be studied at centers around UK, some
of which also offer distance learning options. The institute also have overseas branches namely
The Chartered Institute of Logistics & Transport Australia (CILTA) in Australia and Chartered
Institute of Logistics and Transport in Hong Kong (CILTHK) in Hong Kong.
25 | P a g e
The International Association of Public Health Logisticians (IAPHL) is a professional network
that promotes the professional development of supply chain managers and others working in the
field of public health logistics and commodity security, with particular focus on developing
countries. The association supports logisticians worldwide by providing a community of
practice, where members can network, exchange ideas, and improve their professional skills.
Logistics museums:
There are many museums in the world which cover various aspects of practical logistics. These
include museums of transportation, customs, packing, and industry-based logistics. However,
only the following museums are fully dedicated to logistics:
General logistics:
 Museum of Logistics (Tokyo, Japan)
 Logistics Museum (Saint Petersburg, Russia)
 Military logistics:
 Royal Logistic Corps Museum (Surrey, England, United Kingdom)
 The Canadian Forces Logistics Museum (Montreal, Canada)
26 | P a g e
Shipping Container Dimensions
STANDARD 20'
INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
DOOR WIDTH
DOOR HEIGHT
CAPACITY
TARE WEIGHT
MAX. CARGO
19'4"
7'8"
7'10"
7'8"
7'6"
1,172 ft³
4,916 lb
47,999 lb
5.89 m
2.33 m
2.38 m
2.33 m
2.28 m
33.18 m³
2,229 kg
21,727 kg
STANDARD 40' HIGH CUBE 40'
INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
DOOR WIDTH
DOOR HEIGHT
CAPACITY
TARE WEIGHT
MAX. CARGO
39'5"
7'8"
7'10"
7'8"
7'6"
2,390 ft³
8,160 lb
59,040 lb
12.01 m
2.33 m
2.38 m
2.33 m
2.28 m
67.67 m³
3,701 kg
26,780 kg
39'5"
7'8"
8'10'
7'8"
8'5"
2,694 ft³
8,750 lb
58,450 lb
12.01 m
2.33 m
2.69 m
2.33 m
2.56 m
76.28 m³
3,968 kg
26,512 kg
OPEN TOP 20'
(upgraded also available)
OPEN TOP 40'
INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
DOOR WIDTH
DOOR HEIGHT
CAPACITY
TARE WEIGHT
MAX. CARGO
19'4"
7'7"
7'8"
7'6"
7'2"
1,136 ft³
5,280 lb
47,620 lb
5.89 m
2.31 m
2.33 m
2.28 m
2.18 m
32.16 m³
2,394 kg
21,600 kg
39'5"
7'8"
7'8"
7'8"
7'5"
2,350 ft³
8,490 lb
58,710 lb
12.01 m
2.33 m
2.33 m
2.33 m
2.26 m
66.54 m³
3,850 kg
26,630 kg
REEFER 20' REEFER 40'
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INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
DOOR WIDTH
DOOR HEIGHT
CAPACITY
TARE WEIGHT
MAX. CARGO
17'8"
7'5"
7'5"
7'5"
7'3"
1,000 ft³
7,040 lb
45,760 lb
5.38 m
2.26 m
2.26 m
2.26 m
2.20 m
28.31 m³
3,193 kg
20,756 kg
37'8"
7'5"
7'2"
7'5"
7'0"
2,040 ft³
10,780 lb
56,276 lb
11.48 m
2.26 m
2.18 m
2.26 m
2.13 m
57.76 m³
4,889 kg
25,526 kg
FLAT RACK 20' FLAT RACK 40'
INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
TARE WEIGHT
MAX. CARGO
18'5"
7'3"
7'4"
5,578 lb
47,333 lb
5.61 m
2.20 m
2.23 m
2,530 kg
21,469 kg
39'7"
6'10"
6'5"
12,081 lb
85,800 lb
12.06 m
2.08 m
1.95 m
5,479 kg
38,918 kg
FLAT RACK
COLLAPSIBLE 20'
FLAT RACK
COLLAPSIBLE 40'
INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
TARE WEIGHT
MAX. CARGO
18'6"
7'3"
7'4"
6,061 lb
61,117 lb
5.63 m
2.20 m
2.23 m
2,749 kg
27,722 kg
39'7"
6'10"
6'5"
12,787 lb
85,800 lb
12.06 m
2.08 m
1.95 m
5,800 kg
38,918 kg
PLATFORM 20' PLATFORM 40'
INSIDE LENGTH
INSIDE WIDTH
INSIDE HEIGHT
TARE WEIGHT
MAX. CARGO
19'11"
8'0"
7'4"
6,061 lb
52,896 lb
6.07 m
2.43 m
2.23 m
2,749 kg
23,993 kg
40'0"
8'0"
6'5"
12,783 lb
66,397 lb
12.19 m
2.43 m
1.95 m
5,798 kg
30,117 kg
28 | P a g e
Freight terms
Freight Tptn fm Customs Port Cost Ocean Port Custom Tptn fm
terms factory clg cost Freight Cost Clg cost port to
to port from factory
(Origin) (origin) (origin) Origin to (Destn) (Destn) (Destn)
Destinatn
CIF Exporter Exporter Exporter Exporter Importer Importer Importer
(Cost , Insurance , Freight)
FOB Exporter Exporter Exporter Importer Importer Importer Importer
(Free on Board)
EX WORKS Importer Importer Importer Importer importer Importer Importer
DOOR DELIVERY Exporter Exporter Exporter Exporter Exporter Exporter Exporter
FCA Export Importer Importer Importer Importer Importer Importer
Classification of Shipping Companies
Shipping Bill of Containers Ship
Company Lading
Satus (BL)
Liner/ Main Line operator Yes Yes Yes
MLO
NVOCC Yes Yes No
(Non vessel operatorof containerised cargo)
Freight Forwarder Yes No No
29 | P a g e
Import Marketing Strategy
(Since Care Container Lines main activity revolves around imports, the following are strength
areas, which other companies do not have).
LCL Import:
The company tells the consignees the following when we are marketing for LCL,
a) They will get a single window delivery from our office, which means that they do not have
to go to various forwarders and pay multiple DO charges ranging from Rs.3000 to Rs.3500. If
there are even 3 forwarders, there is a cost of around Rs.9000 to Rs.10500 additional. Hence for
a 3 CBM cargo , if our quote is $65 from Hamburg (say) and our competitor offers $ 50 , the
shipper at the outset may seem to pay $ 45 more (Rs.2250 ), but it is more than compensated by
his avoiding (Rs.9000 to Rs.12000). The worst part is that the consignee till the last moment
does not know how many forwarders will be involved. All this can be avoided.
b) Even after paying the above charges , the consignee has to go to 4 to 5 places , which not only
kills his time, but also results in wrong documentation due to lack of communication between so
many the agents , who might forward the documents delayed. This further adds up to costs in the
form of supplementary IGM, amendments etc. Finally late release of goods and incurring
demurrage, disrupted production schedule and mental trauma.
c) Company can offer a unique service, wherein it can bring the cargo in our box irrespective
where the origins are. Since they will be bringing all these cargoes to Singapore /Hong Kong
and then we will form our box with these cargoes for the Indian Ports.
d) If the cargo moves through CCL, they will get the tracking of the cargo accurately. Moreover
there is prompt and courteous service as well. Since there is a general tendency from the shipping
companies at destination that the consignee has to release the goods and any kind of a behavior
can be given as the ball is in their court.
e) If the cargo is on regular basis, even without availability of documents, Company release the
cargo. Later stages when full trust and faith has been established.
30 | P a g e
FCL Import:
a) Certain points are common to LCL, but the most important point is the duty factor for FCL.
When a cargo comes to Indian port (matter of fact, to any port in the world), the duty is calculated
on CIF value (even though the cargo moves on FOB), which means if the cargo arrives on FOB
basis, freight will be added to it and then the duty will be calculated. So if a cargo from US comes
and the ocean freight is $ 2800 per container and the duty of the commodity is 60 %, when it
comes to Mumbai, the duty hike due to freight will be $ 2800 x 60 % = $ 1680, now if we give
the client a freight certificate of $ 1600, the duty element will be $ 1600 x 60% = $ 960, which
means a saving of $ 720 ($ 1680 - $ 960), therefore eve if we sell $ 300 more and are able to
make the consignee understand this, he will agree to give us the business.
b) If the company can be pally with the shipping line, it can have excellent rates filed in
company’s favor, since very people are doing import marketing.
C) Moreover Company can make some money on detention, by committing 5 days to the client
and getting 14 days from the shipping lines.
31 | P a g e
CHAPTER: 2
LITERATURE REVIEW
32 | P a g e
An attempt has been made to review some existing literature available and having broad
relatively with the subject area.
“International Journal of Production Economics”, Research and Applications in E-
commerce and Third – Party Logistics Management, Vol. 113, issue 1, May 2008, Pages
127-147.
Third – Party Logistics has attracted considerable Research attention in the recent past.
Despite the growing body of Literature on this Topic, Precious little effort has been
devoted to synthesizing the overall state of art of Research on TPL.
Patterson, “Transportation Research Part E: Logistics and Transportation Review” Vol.47,
Issue 4, July 2011, Pages 547-570.
The aim of the research described in this paper is to evaluate the relationship between the
service capabilities and performance of UK and Taiwanese third-party logistics (3PL)
providers. A study is presented based on a recent survey. The results identify the most
important services offered by 3PLs and the most important aspects of 3PL operational
performance. The results also suggest that excellence in operations is more important than
wide-ranging service provision. Furthermore, the research suggests that the range of
service provision offered by 3PLs does not directly influence the 3PLs’ financial
performance. However, 3PL providers with service capabilities that correspond to the key
priorities of customers will gain superior financial performance through a better
operational performance.
Andrew C. Lyons, “How different is carrier choice for third party logistics companies?”
Volume 47, Issue 4, July 2011, Pages 547-570.
The purpose of this paper is to test whether third party logistics companies (3PLs) are
different from other end-shippers with respect to how they choose their carriers. The results
of carrier choice models developed in this paper suggest that 3PLs are more biased against
intermodal shipping than other end-shippers. The principal conclusions are as follows:
mode and carrier choice modeling needs to take into consideration differences between
3PLs and other end-shippers; and with the increasing role of 3PLs in choosing carriers,
their stronger bias against intermodal shipping will present further challenges to increasing
freight rail mode share.
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Valentina Carbone, “Growth and relational strategies used by the European logistics
service providers: Rationale and outcomes” Volume 41, Issue 6, November 2005, Pages
495-510.
This article reports on research into the ways European providers of logistics and transport
services develop and grow. The strategic behavior adopted by the leading 20 third-party
European logistics service providers (3PLs) between 1998 and 2004 is examined,
particularly their approach to mergers and acquisitions (M&A) and logistics alliances. It
shows that while growth among 3PLs is aimed at providing more cohesive European
logistics coverage, national culture constrains their efforts. More consolidation within the
3PL industry is expected. A few market leaders offer a wide range and scope of services,
while most other firms have a diversified portfolio of interests.
“Logistics Companies experience growth pangs”, Sept 8, 2008, Economics Times Bureau
Logistics companies in India and the companies that offer consulting services to them seem
to have come up against a major developmental block in their growth trajectory. According
to consultants ETSL talked to, at least half a dozen leading logistics providers are seriously
looking at ways of expanding their basket of services to become all inclusive, one-stop
shop for services incorporating sea, air, land and other supply chain logistics services.
“Indian logistics companies scale the Great Wall”, May 2, 2005, Sachin Baxi / ETIG, TNN
If China is the factory of the world, then the goods manufactured there have to be shipped
out as well. With the quantum of trade rising every year between China and India, plus
China's accession to the WTO, the market for logistics in China is expanding at a frenetic
pace. The Olympics, to be hosted in '08, is offering a further boost to materials movement.
Indian service providers are angling for a slice of that pie.
“Logistics companies Indian arms liable for tax”, November 12, 2004, M Padmakshan,
Foreign logistics companies operating in India through their Indian subsidiaries are liable
to be taxed in India, says a recent decision by the Authority for Advance Ruling (AAR) on
an application. The AAR was ruling on an application filed by UPS Jet air Express, which
is a joint venture between global logistics major UPS International Forwarding and Jet Air.
“Growing online retail industry a boon for logistics companies”, February 21, 2014,
Radhika P Nair, ET Bureau
34 | P a g e
The race to sort, package and ship millions of products that Indians are buying online is
becoming a hotly contested one in the Indian logistics industry as several companies launch
innovative services to grab the growing business
“Improving Operations with a Yard Management System”, April 2015, thought Leaders,
Nathan Harris, President, Yard view
Two main roles come to mind—Visibility and Communication. Today's best systems offer
visibility into basic information including the location, status, and contents of assets on the
yard. They are also able to offer more detailed information including historical data, load
detail down to the SKU, and accountability of who is performing tasks and when.
Communication plays a huge role in providing updates and access to key information for
all necessary parties. These include the gate staff, yard drivers, dock personnel, warehouse
managers, carriers, and customers. A yard management tool may be the first time all of the
groups are able to access the same up-to-date information in one place. Operations teams,
customers, and carriers may choose to receive e-mail or text communications for key yard
events either passing or approaching. Old communication techniques like phone calls and
faxes are replaced by real-time information that is correct and always up to date.
“Building a Smarter Warehouse”, May 2015, Feature Stories, by Joseph O’ Reilly
Warehouse perceptions have changed considerably over the past two decades. It wasn't
long ago that users perceived the four walls as just that—a fixed, immovable force that
served as the nexus for any distribution network. Today, such representations are
increasingly obsolete largely because of forces beyond the four walls. Cloud computing,
e-commerce, Omni channel management, big data, and last-mile logistics are reshaping
today's distribution facility. The warehouse is still core. But its role in the supply chain is
much more fluid. The modern DC is molded by countless external pressures that are
eroding convention and shaping invention. Technology and materials handling innovation
have become important catalysts in the evolution of smarter warehouses.
“Communication is Key When Optimizing Logistics Networks”, Commentary Viewpoint,
by Jeff Vielhaber
Within any logistics network there are vendors, warehouses, distribution centers, service
operations, transportation routes and hubs, carriers, freight forwarders, importers,
exporters, and more. The idea of optimizing all of it is enough to give anyone a splitting
headache. The goal of optimization is to reduce costs while becoming more efficient. To
do this, some companies hire analysts; others employ the latest and greatest technologies.
We often think by simply getting advice or upgrading our systems we’ll accomplish our
goals, only to find that we come up short. Many seem to forget about communication. New
technologies must either communicate with current technology or replace it all together. If
a company hires an expert for advice, that advice needs to be shared and acted upon in all
departments.
35 | P a g e
“3PLs Put Technology Front and Center”, April 2015, Feature Stories, Merrill Douglas
Certainly, many respected 3PLs use software developed by other firms to help run their
businesses, and run them well. But some 3PLs have brought the technology expertise in-
house, creating their own systems for transportation management, business analytics, and
other key functions. 3PLs with proprietary systems mainly use them within their own four
walls, to support services to customers. But some 3PLs also market their solutions, either
as standalone products or as part of their service offerings. For smaller shippers, licensing
technology (or, more likely, subscribing to a cloud-based service) from a 3PL can be an
attractive proposition. A company that can't otherwise afford to buy and maintain cutting-
edge technology gains a solution originally developed to serve a large, sophisticated
operation. Even a big shipper might choose this option, so it can focus resources on
functions more central to its mission.
“Building a Bridge to Continuous Improvement”, January 2015, Case Studies, Casebook
The good news: L.B. Foster was rapidly growing. The bad news: that growth made it a
struggle to keep up with transportation and logistics demands. By turning to a third-party
logistics provider, L.B. Foster was able to implement an enterprise logistics solution that
can handle as much freight as the company can enter—quickly and efficiently. Pittsburgh-
based L.B. Foster supplies transportation, construction, utility, energy, recreation, and
agriculture markets with materials to build and maintain infrastructure. As a manufacturer,
fabricator, and distributor of quality materials, the company is committed to meeting
customer requirements and increasing their satisfaction through continual product and
service improvements. This drive toward improvement has had a dynamic effect on L.B.
Foster's logistics and transportation processes. "In 2009, we identified a pressing need to
improve the way we handled freight," says Arnie McCauley, material services manager at
L.B. Foster. The company was growing rapidly, but was using methods that didn't allow it
to easily keep up with the demand to place freight. It didn't have an easy way to secure
contracts with carriers other than running inquiries on a homegrown system with a
rudimentary rate structure driving the database.
“Demand for tech innovators to go up in Indian logistics industry”, February 27, 2015, ET
Bureau, by Amrita Premranjan, Timesjobs.com bureau
The Indian e-commerce boom is leading to an increased competition within the logistics
industry. To build a strong competitive edge, logistics companies are set to bring onboard
Innovation Managers and Tech Evangelists.
36 | P a g e
“Logistics companies looking for funds to build scale & be GST-ready”, November 2014,
Megha Mandavia, ET Bureau
An expected roll out of Goods and Service Tax (GST) is pushing privately-held logistics
companies to look for funds from private equity firms, strategic investors and public listing
in order to finance massive expansion in warehouses and fleet. The logistics sector will see
a slew of deals in the next one year as international and domestic investors scout for targets,
while companies look to unlock value. Experts say larger companies in will look at a public
listing while mid-sized companies will seek strategic or PE funding.
“Logistics industry will grow because organized logistics is growing in India”, October
13, 2008, ET Bureau
Juzar Mustan, CEO of AFL Logistics At a time when retail is undergoing through a
challenging phase in its evolution in India, Juzar Mustan, CEO of AFL Logistics, shares
his insight to it and tells ETSL why he is confident of the industry in the country how is
the retail sector faring in India? Retail is going through challenging times. The business is
under siege from within as many players are trying to outdo the other.
“Logistics sector: Right time to accumulate stocks”, June 9, 2008, Karan Sehgal, TNN
Though stocks in the logistics sector have fallen more than the broad market since January
'08, the results of the March '08 quarter show that logistics companies have performed
much better in this quarter than the past three quarters. The net sales and net profits of
logistics companies (excluding shipping companies) posted growth rates of 16.4% and
24.7%, respectively, in the March '08 quarter. There are signs of clear improvement in
operating and net margins, thanks to the efforts of companies to diversify into high-margin
businesses like third-party supply chain management and managing container terminals.
“Transforming India’s logistics infrastructure”, September 2010, Mc Kinsey by Rajat
Gupta, Hemang Mehta and Thomas Netzer
Logistics infrastructure is a critical enabler of India’s agenda for economic development
and urbanization. Recognizing its pivotal role, the Indian government will have tripled
annual spending on logistics infrastructure over the past seven years, from about $10
billion in 2003 to $30 billion in 2010. Despite this increase, the country’s network of roads,
rail, and waterways will be insufficient to accommodate a threefold increase in freight
movement over the coming decade. This shortfall in logistics infrastructure will put India’s
growth at risk, concludes a new McKinsey report, Building India: Transforming the
nation’s logistics infrastructure.
37 | P a g e
Since a large part of the logistics network that India needs has yet to be built, the country
has a chance to add infrastructure optimally to meet the growing demand. The report finds
that to achieve this goal, India must pursue an integrated and coordinated approach that
not only closely aligns the development of each mode—railways, roads, and waterways—
with the country’s needs but also makes better use of existing assets. This will require
increasing the railways’ share of logistics infrastructure investments from about 40 percent
currently to 50 percent. Building a logistics infrastructure capable of handling rising freight
traffic more efficiently presents opportunities for user industries and for infrastructure
developers and construction companies, among others, the report finds.
“Logistics Services Market in India 2013”, February 19, 2013, Netscribes India Private
Limited
Logistics services market India is on a growth trajectory owing to rapid globalization and
100% FDI allowance. Logistics services broadly encompass courier services, freight
forwarding, third party logistics and reverse logistics. Growth in international trade is
providing huge impetus to the demand for the logistics services. Growing competition in
retail sector transcends need of reverse logistics to handle returns and store up gradation.
Third party logistics providers need to customize their services and charge competitive
rates to benefit from retail boom in India. E-tailing has revamped shopping experience by
transforming it from a weekend to anytime activity that is having a favorable impact on
courier and reverse logistics sectors.
“Third Party Logistics Practices: An India Perspective”, B. S. Sahay and Ramneesh Mohan
Third party logistics (3PL) is a business dynamic of growing importance all over the world.
However, it is at a very nascent stage in India, though some domestic and multinational
companies are trying to establish themselves in this sector. This paper is an attempt to
provide a 3PL perspective in India. The paper focuses on three major issues – present
extent of usage of third party logistics services, reasons for outsourcing and impact of
usage of third party logistics services on business results. The paper reveals that most 3PL
users are satisfied with the current level of services provided by 3PL service providers as
it has led to a positive impact on business results. As a result, the usage of third party
logistics services is likely to increase substantially (40 percent) in the future.
38 | P a g e
“Journal of Business Logistics”, Vol.13, No.2, 1992, the use of Third Party Logistics
Services by Robert C. Lieb Northeastern University
The concept of Third - Party Logistics has led to considerable debate within the Logistics
Community. Those advocating the use of Third – Party Services contend that
manufacturers should concentrate on their core Business, while allowing others to manage
the Logistics Function. Such reliance upon Third – Parties might promote lower costs,
better customer service, improved asset utilization, increased flexibility and access to
leading edge technology. The functions performed by Third – Party can encompass the
entire logistics process or selected activities within the process.
Journal of Business Logistics, Vol. 19, No.1, 1998, “Selection Criteria for providers of
Third – Party Logistics Services: An Exploratory Study” by Mohan K Menon, University
of South Alabama
Since deregulation of the Freight Transportation Industries, buying Logistics Services has
become similar to the purchase of other types of industrial services. This exploratory study
examines selection criteria for Logistics Service Providers and how these criteria are
affected by the firm’s competitiveness and external environment. Lessons for Practitioners,
Teachers and Researchers are provided. Rates charged, Market Entry and Exit and levels
of service was administered by the Inter-state Commerce Commission. As a result buying
of Logistics services was inhibited by the ability of providers to offer integrated service
packages.
“An empirical study on Supply Chain Management: the perspective of Logistics Service
Providers”, Volume 6, Issue 1, International Journal of Logistics Systems and
Management by T.N. Srikantha Dath, Chandrasekharan Rajendran, K. Narashiman
A growing awareness that competitive advantage comes from the delivery process as much
as from the products has been instrumental in regarding logistics as a key strategic
function. The present work develops a valid and reliable instrument, covering various
aspects of Supply Chain Management (SCM) in India, from the Logistics Service
Provider's (LSP's) perspective and investigates the relationship between the factors of
SCM and the measures of performance in a moderated environment. The findings indicate
that the moderator (Supply Chain Orientation) appears to have a significant and positive
effect on the relationship between the factors of SCM and the business performance
measures of LSPs, but appears to have no significant effect on their financial measure of
performance.
39 | P a g e
“The Supply Chain Role of Third‐Party Logistics Providers”, the International Journal of
Logistics Management, Volume 12, Issue 2
Outsourcing, the strategy in which organizations employ the services of external providers,
has attracted growing interest. Academic and industrial attention has also focused on the
role of seamless supply chain processes in achieving and sustaining competitive advantage.
This research is based on petrol retailers in the UK that have adopted logistics outsourcing
strategies for implementing supply chain solutions to their convenience‐goods operations.
Its aim is to identify the factors, which influence outsourcing decisions and the nature and
supply chain implications of outsourcing strategies. Research findings indicate that the
capability of service providers to facilitate supply chain solutions is largely influenced by
four main factors, which in turn substantially determine their role in the supply chain: the
strategic orientation of the outsourcing organization; its perception of service providers'
role within the logistics strategy; the nature of the resultant client‐provider relationship;
and, the extent to which the logistics process is outsourced.
Gøran Persson, Helge Virum, (2001) "Growth Strategies for Logistics Service Providers:
A Case Study", The International Journal of Logistics Management, Vol. 12 Iss: 1, pp.53
– 64
This article is based on two studies, partly financed by the Norwegian Research Council.
The first study was carried out in six organizations cooperating in two supply chain
alliances. The purpose of this study was to develop a set of hypotheses concerning logistics
service providers and their roles in supply chain alliances. The second study, involved
interviews carried out in 12 different logistics organizations, and concerned their
perception of future trends and future position. The purpose of this article is to highlight
and to describe some of the major findings in the two studies on growth strategies for
logistics service providers. We propose a matrix categorizing the players and their strategic
position. Given the pressures in the industry and the individual strategic position, the
strategic choices in fact are limited, leading to some dominating strategic directions that to
a certain extent, also explain the structural changes in the industry.
James C. Cooper, (1993) "Logistics Strategies for Global Businesses", International
Journal of Physical Distribution & Logistics Management, Vol. 23 Iss: 4, pp.12 – 23
As businesses continue to globalize, attention has increasingly turned to logistics.
Examines global logistics in depth, beginning with a brief overview, to provide a working
context. Discusses the development of global logistics strategy, taking a bottom‐up
approach. Assesses the effects of product‐market characteristics on strategy formulation
and evaluates logistics strategy at business unit or company level. Considers the
40 | P a g e
implications of global logistics strategies, detailing the critical success factors which apply
and highlighting the need for organizational change.
“Barriers to implement green supply chain management in automobile industry using
interpretive structural modeling technique: An Indian perspective”, Vol.4, No 2 (2011), by
Sunil Luthra, Vinod Kumar, Sanjay Kumar, and Abid Haleem
Green Supply Chain Management (GSCM) has received growing attention in the last few
years. Most of the automobile industries are setting up their own manufacturing plants in
competitive Indian market. Due to public awareness, economic, environmental or
legislative reasons, the requirement of GSCM has increased. In this context, this study
aims to develop a structural model of the barriers to implement GSCM in Indian
automobile industry.
B.S. Sahay, Ramneesh Mohan, (2006) "3PL practices: an Indian perspective",
International Journal of Physical Distribution & Logistics Management, Vol. 36 Iss: 9,
pp.666 – 689
To carry out a comprehensive survey on 3PL practices in India and to establish the impact
of usage of third party logistics services on business results. Begins by analyzing the
studies carried out on 3PL practices and establishing a research framework. The input
variables to the research framework depict the organization‐specific characteristics, such
as the extent of usage of 3PL services, the reasons for outsourcing and the impact of the
usage of 3PL services. The output function of future usage of 3PL services is influenced
by the three input variables. Data collected through survey questionnaire on the input and
output variables are used to establish impact of usage of 3PL services on business
performance through statistical analysis.
Rohit Bhatnagar, Amrik S. Sohal, Robert Millen, (1999) "Third party logistics services: a
Singapore perspective", International Journal of Physical Distribution & Logistics
Management, Vol. 29 Iss: 9, pp.569 – 587
Focusses on three constructs that we believe are the primary determinants of the future
usage of third party logistics services. These constructs are: extent of use of the third party
logistics services; decision making process for choosing contract logistics services
provider; and impact of the usage of contract logistics services on the organization. An
empirical research was carried out in Singapore to study the impact of these three factors
on the future usage of third party logistics services in Singapore. Results based on an
analysis of data relating to 126 Singapore‐based firms indicate that most users of these
services are satisfied with their providers and believe that this has led to positive
developments within the organization.
41 | P a g e
CHAPTER: 3
RESEARCH METHODOLOGY
42 | P a g e
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the study
consistent of sample survey using primary data. The primary data has been collected with the
help of questionnaire. The questionnaire has been drafted & presented to Logistics Managers
was in offline mode.
TITLE OF THE PROBLEM:
“CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO
CARE CONTAINER LINES PRIVATE LIMITED”
OBJECTIVES OF STUDY:
 To find about the type of Business in which the company deals by Market Research Method
 To find out the products and commodities they Export and Import
 To get the Information about the countries from where they Export/Import
 To know the company’s Incoterms Policies
 To find out the company’s preferred Shipping Lines and Forwarders
 To know their level of satisfaction in terms of Rates and Timely Service
SAMPLE SIZE:
Sample of 120 Clients of different Export – Import Companies was taken into study and their
data were collected.
SAMPLING TECHNIQUE:
To Study this Project, a Simple Random Sampling technique is used
DATA COLLECTION:
Collection of data (primary) is done by:
 Questionnaire
 Face to face interaction
43 | P a g e
DATA ANALYSIS:
After data collection, I am able to analyze Client views, Logistics Managers perception and
opinions related to Logistics Requirements by the Clients in the Export and Import Sector, Care
Container Lines Private Limited will come to know the client’s requirements in the Logistics
Sector.
DATA INTERPRETATION:
Interpretation of data is done by using statistical tools like Pie diagrams and using quantitative
techniques (by using these techniques) accurate information is obtained.
CLASSIFICATION & TABULATION OF DATA:
The data thus collected were classified according to the categories. The resultant tables were one
dimensional, two-dimensional.
STATISTICAL TOOLS USED FOR ANALYSIS:
Out of the total respondents, the respondents who responded logically were taken into account
while going into statistical details & analysis of data. The tools that have been used for analyzing
data & inference drawing are mainly statistical tools like percentage, averages, etc. As per
questionnaire, I have obtained different responses from different people. According to their
responses, I analyzed the findings and drawn certain remarks on the basis of those responses.
LIMITATION OF THE STUDY:
 The data collected was not from company data sheet but from secondary sources and
market.
 The Logistics managers were not ready to disclose the real data of their shipments.
 The data cannot be taken out as a Company Representative of Care Container Lines
Private Limited only but in different situations to handle the clients.
 The Company’s contact person sometimes thought as if I have come for taking out
auditing information of company due to which the data was not easy to fetch from them.
44 | P a g e
CHAPTER: 4
DATA ANALYSIS AND
INTERPRETATION
45 | P a g e
The number of Companies from which the data have been taken after doing Market Research is
120, based on the data received the analysis has been done as shown below:
1. The type of Shipping Companies which are in Export and Import sector
Limited Company Private Limited Proprietorship
Analysis: From the data collected, it was found that most of the EXIM companies are Private
Limited after this Limited Companies and at the last Proprietorship exists.
Limited company Private Company Proprietorship
Percentage 20.83 54.1 25
20.83
54.1
25
0
10
20
30
40
50
60
Percentage
Percentage
46 | P a g e
2. Type of Shipments
LCL FCL AIR ODC OTHERS
Analysis: The data collected from the various Industrial Areas, most of EXIM companies deal
in different Incoterms Policies like LCL import is at the highest priority after this air shipments,
FCL imports and some odd dimension cargo imports are also there but very less in number.
LCL FCL AIR ODC OTHERS
Percentage 54.1 15 19.16 8.33 3.33
54.1
15
19.16
8.33
3.33
0
10
20
30
40
50
60
Percentage
Percentage
47 | P a g e
3. The Shipping Companies which deal in Export/Import and both
Importer Exporter Both
Analysis: Out of total companies visited 53.3% of companies deal in Imports, 30% of companies
deal in Exports and rest of 16.66% deal in both Import and Export.
Importer Exporter Both
Percentage 53.33 30 16.66
53.33
30
16.66
0
10
20
30
40
50
60
Percentage
Percentage
48 | P a g e
4. List of Items which are heavily imported in India
Electronic Items Marbles Others
Analysis: Mostly Imported Items in India are Electronic Items then after edible products are
consumed and Refrigerated products are mostly imported which consist of mainly Chemicals
and Medicines ,
Electronic Items Edible Products Others
Percentage 54 28 18
54
28
18
0
10
20
30
40
50
60
Percentage
Percentage
49 | P a g e
5. List of heavily Exported Items from India
Garments/Apparels Rice Others
Analysis: In terms of Exports, Indian Export Houses contribute maximum export of Garments
and Apparels to Middle East Countries then after Rice is mostly exported to Middle East
Countries. Handicrafts Items contribute a share of 20%.
Garments/Apparels Rice others
Percentage 52 28 20
52
28
20
0
10
20
30
40
50
60
Percentage
Percentage
50 | P a g e
6. Shipments Terms preferred by EXIM companies
CIF FOB EX-WORKS FCA DOOR
DELIVERY
Analysis: From the data collected from the various EXIM companies, it was found that most of
the shipments was in FOB i.e. 43.33%, then 25% shipments was CIF Shipments, some
companies prefer to use FCA Shipment and least preference is Door Delivery.
FOB CIF FCA DOOR DELIVERY
Percentage 43.33 25 8.33 5
43.33
25
8.33
5
0
5
10
15
20
25
30
35
40
45
50
Percentage
Percentage
51 | P a g e
7. Consideration by EXIM companies for finalizing the shipments
Rates Timely Service Company Background
Analysis: Most of the EXIM companies consider Rates for finalizing the Shipments, some
companies prefer Timely Service while company’s background is least preferred in terms of
finalizing the shipments.
Rates Timely Service Company Background
Percentage 75 16.66 10
75
16.66
10
0
10
20
30
40
50
60
70
80
Percentage
Percentage
52 | P a g e
8. Willing to change existing Forwarder or Shipping Line
Yes No
Analysis: Decision to Change Forwarder or Shipping Line is very difficult for EXIM
Companies because Trust over Forwarder or Shipping Line continues to be the part of
Business which can’t be broken for sake of money.
Yes No
Percentage 18.33 81.66
18.33
81.66
0
10
20
30
40
50
60
70
80
90
Percentage
Percentage
53 | P a g e
9. Willing to change Customs House Agent (CHA)
Yes No
Analysis: Customs House Agent helps in clearance of the shipments so most of EXIM
Companies do not prefer to change their CHAs, only in some rare cases they might
change.
Yes No
Percentage 10 90
10
90
0
10
20
30
40
50
60
70
80
90
100
Percentage
Percentage
54 | P a g e
CHAPTER: 5
SUMMARY OF FINDINGS
55 | P a g e
Findings:
During the course Market Research some of the key findings are as follow:
 Most of EXIM Companies deal in Imports
 The Electronic Item is heavily imported in India
 Most exported Items are Rice and Garments
 LCL (Less Container Load) shipment is mostly preferred
 The preferred Shipping Line of EXIM companies is MAERSK shipping line
 Generally EXIM companies prefer shipment terms in FOB and CIF
 For finalizing the shipments EXIM companies look after certain parameters like Rates,
Timely service and Company background out of these ‘Rate’ is the first preference by
the companies
 Fetching information from the Logistics Managers of EXIM companies is very difficult
somehow they respond but not openly
 During surveying the Industrial Areas in different Locations, the Contact persons of some
EXIM companies don’t want to provide data and denied.
 Visiting these EXIM companies without appointments led them to think as if I had
arrived for the Inspection purpose
 Some EXIM companies directly denied to disclose the data and requested to go
 Far east and Middle East are mostly preferred Export Location of India
56 | P a g e
Suggestions and Recommendations:
 From the Survey it is clear that Import of goods is still higher in India so I would like to
suggest to manufacturing companies to utilize the resources and try to manufacture
finished goods
 The Dry Ports of India should be expanded well so that the transportation of products can
be done easily without any delay
 EXIM companies must have a clear understanding of its customer’s requirements and
should develop a strategy on how to use logistics to achieve it because the customer is
the most important asset for a company. He drives the entire supply chain including
manufacturing, marketing and logistics
 Technological factor and Information System are still issues in Logistics Industry due to
which widespread of network is still not achievable hence it should be improved
 For increasing efficiency and effectiveness, I suggest to combine both Information and
Material handling systems for effective Supply chain Management
 I would like to recommend Warehouse Management system with an Integrated RFID
based technology which will improve entire Inventory handling process by providing an
Automated, Systematic and accurate Warehouse management cycle that is error – free,
efficient and updated real time
57 | P a g e
Conclusion:
Indian Logistics Industry is continuously improving its performance in the Global Logistics
Industry by improvement of customs, Trade-related infrastructure, Inland transit, Logistics
Services, Information systems and Port efficiency help to provide trade goods and services on
Time and at Low Cost.
World Bank ranks India at 39th
in Global Trade Logistics amongst 150 countries.
58 | P a g e
Bibliography
 “International Journal of Production Economics”, Research and Applications in E-
commerce and Third – Party Logistics Management, Vol. 113, issue 1, May 2008,
Pages 127-147.
 Andrew C. Lyons, “How different is carrier choice for third party logistics
companies?” Volume 47, Issue 4, July 2011, Pages 547-570.
 Valentina Carbone, “Growth and relational strategies used by the European
logistics service providers: Rationale and outcomes” Volume 41, Issue 6,
November 2005, Pages 495-510.
 “Logistics companies Indian arms liable for tax”, November 12, 2004, M
Padmakshan,
 “Improving Operations with a Yard Management System”, April 2015, thought
Leaders, Nathan Harris, President, Yard view
 “Building a Smarter Warehouse”, May 2015, Feature Stories, by Joseph O’ Reilly
 “Communication is Key When Optimizing Logistics Networks”, Commentary
Viewpoint, by Jeff Vielhaber
 “3PLs Put Technology Front and Center”, April 2015, Feature Stories, Merrill
Douglas
 “Logistics companies looking for funds to build scale & be GST-ready”, November
2014, Megha Mandavia, ET Bureau
 “Logistics industry will grow because organized logistics is growing in India”,
October 13, 2008, ET Bureau
 “Logistics sector: Right time to accumulate stocks”, June 9, 2008, Karan Sehgal,
TNN
 “Transforming India’s logistics infrastructure”, September 2010, Mc Kinsey by
Rajat Gupta, Hemang Mehta and Thomas Netzer
59 | P a g e
Annexure
Sample Questionnaire
SUMMER INTERNSHIP PROGRAMME
 Name of Company:-
 Exporter or Importer:-
 Type of Company: - Ltd. ( ) Pvt. Ltd. ( ) Proprietorship ( ) Any Other
………………….
 Contact Person:-
 Contact No. (Mob.):- Landline No.:-
 Email Id.:-
 Address:-
 Shipment Type:- LCL ( ) FCL ( ) Air ( ) ODC ( ) Any Other …………………………
 Number of shipments in a month :-
 The Commodity/Product you import/export :-
 Present Forwarder or Shipping Line:-
 Preferred Shipping Lines or Airlines:-
 Origin of Shipments:-
 Destination of Shipments:-
 Shipment Terms:- CIF ( ) FOB ( ) Ex-works ( ) FCA ( ) Any Other
……………………..
 Is there any query at Present…………………………………………..
 Which thing do you consider to finalize a shipment :- Rates ( ) Timely Service( )
Company Background( )
 Are you willing to change your Existing forwarder or shipping line? If yes, please
specify reason for change.
………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………
……………………………………………………………………………………
 Are you willing to Change your CHA? Yes ( ) No ( )
 Any Suggestion for improvement of service

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SUMMER INTERNSHIP REPORT - Deepak kumar

  • 1. 1 | P a g e SUMMER INTERNSHIP PROJECT REPORT ON “CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO CARE CONTAINER LINES PRIVATE LIMITED” SUBMITTED TO ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT UNDER THE GUIDANCE OF (Dr. DEVENDRA BAHADUR) SUBMITTED BY: (DEEPAK KUMAR) 2K14IB01 PGDM BATCH 2014-2016
  • 2. 2 | P a g e CERTIFICATE This is to certify that Mr. Deepak Kumar, Roll number 2K14IB01, a student of PGDM in Asia Pacific Institute of Management, New Delhi, has carried out the Summer Internship Project work presented in this report titled “CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO CARE CONTAINER LINES PRIVATE LIMITED” for the award of Post Graduate Diploma in Management for the Academic Batch 2014-16, under my guidance. (Signature) Date:
  • 3. 3 | P a g e DECLARATION I, DEEPAK KUMAR, hereby declare that the project work entitled “CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO CARE CONTAINER LINES PRIVATE LIMITED” submitted towards partial fulfillment of requirements for the award of Post Graduate Diploma in Management is my original work and the dissertation has not formed the basis for award of any degree, associate ship, fellowship or any similar title to the best of my knowledge. Place: NEW DELHI (Signature of Student) Date: (DEEPAK KUMAR) Roll No: 2K14IB01
  • 4. 4 | P a g e ACKNOWLEDGEMENT It is my proud privilege to release the feelings of my gratitude to several persons who helped me directly or indirectly to conduct this project work. I express my heart full in debt and owe a deep sense of gratitude to my teacher and my faculty guide Prof. DR. DEVENDRA BAHADUR, Asia Pacific Institute of Management. Corporate guide Mr. SUSHANT ROY, Branch Manager, CARE CONTAINER LINES PRIVATE LIMITED, New Delhi and Mr. PIYUSH TIWARI, Senior Marketing Manager, CARE CONTAINER LINES PRIVATE LIMITED, New Delhi, for their sincere guidance and inspiration in completing this project. I am extremely thankful to faculty members of the Asia Pacific Institute of Management for their coordination and cooperation and thankful to Prof. DR. DEVENDRA BAHADUR for his kind guidance and encouragement. I am also extremely thankful to all those persons who have positively helped me and Business Clients who responded my questionnaire, around whom the whole project cycle revolves. I also thank all my friends who have more or less contributed to the preparation of this project report. I will be always indebted to them. Thanking you
  • 5. 5 | P a g e PREFACE In our two years diploma program of POST GRADUTE DIPLOMA IN MANAGEMENT of there is provision for doing summer internship after III semester. The essential purpose of this project is to given an exposure and detailed outlook to the student of the practical concepts, which they already studied research. For this purpose, I was assigned the project for the “CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO CARE CONTAINER LINES PRIVATE LIMITED” in CARE CONTAINER LINES PRIVATE LIMITED by my project mentor. It is a matter of great privilege to get training from CARE CONTAINER LINES PRIVATE LIMITED, one of the largest Logistics Services Provider of its kind. The project lasted for a period of eight weeks; it was informative, interesting, inspiring and challenging task. I hope this report will provide an experiment outlook to the dynamic functioning in the LOGISTICS department in Export/Import sector.
  • 6. 6 | P a g e CONTENT S. No. Topics Page no. Title Page 1 Certificate 2 Declaration 3 Acknowledgement 4 Preface 5 Executive Summary 8 List of tables 9 List of graphs 10 I. CHAPTER- 1 1.1 Company profile 11 1.2 Introduction 12 1.3 Overview 12 II. CHAPTER-2 13-30 2.1 Literature Review 31 III. CHAPTER-3 31-40 3.1 Research Methodology 41 3.2 Problem of Study 42 3.3 Objectives of the Study 42 3.4 Sample Size 42 3.5 Sampling Technique 42 3.6 Relevance of the Study 42 3.7 Data Collection 42 3.8 Data Analysis 43 3.9 Limitation of Study 43
  • 7. 7 | P a g e IV. CHAPTER-4 44 4.1 Data Analysis and Interpretation 44-53 V. CHAPTER-5 54 5.1 Findings 55 5.2 Suggestions and Recommendations 56 5.3 Conclusion 57 5.4 Bibliography 58 5.5 Annexure (questionnaire) 59
  • 8. 8 | P a g e EXECUTIVE SUMMARY Care Container Lines Private Limited is a Logistics and Supply chain Service Provider. The company over the years has established itself as a Specialist Operator in India with a large customer base. During this time, the strength of our services and overseas contact coupled with ingenuity of our thought process has helped us to evolve a first time in the industry. This study provides the systematic survey of various Logistics managers understanding their Logistics requirements from the clients who deal in providing the Logistics services across the globe. During the course of study the logistics managers were not ready to disclose their data, however the information given by them was limited only. The Industrial Areas which were assigned for collecting the data and filling the questionnaire was almost from every sector which deal in Export and Import globally. The requirements of logistics managers of Export and Import Companies were mainly based on different parameters such as Rates, Timely Service and Company Background. The most preferred parameter was ‘rates’ of Export and Import. Since a large part of the logistics network that India needs has yet to be built, the country has a chance to add infrastructure optimally to meet the growing demand. The report finds that to achieve this goal, India must pursue an integrated and coordinated approach that not only closely aligns the development of each mode—railways, roads, and waterways—with the country’s needs but also makes better use of existing assets. This will require increasing the railways’ share of logistics infrastructure investments from about 40 percent currently to 50 percent. Building a logistics infrastructure capable of handling rising freight traffic more efficiently presents opportunities for user industries and for infrastructure developers and construction companies, among others, the report finds. After going through the survey of all the EXIM companies the percentage of imports is more than that of exports. The most imported product is Electronic Product in India whereas Rice and Garments are heavily exported to Middle East from India. The EXIM companies have their different INCOTERMS Policies which vary the rates of Export and Import. The study focuses on three major issues – present extent of usage of third party logistics services, reasons for outsourcing and impact of usage of third party logistics services on business results. The paper reveals that most 3PL users are satisfied with the current level of services provided by 3PL service providers as it has led to a positive impact on business results. As a result, the usage of third party logistics services is likely to increase substantially in the future.
  • 9. 9 | P a g e List of tables S. No. Topics Page no. I. Type of shipping companies in EXIM Sector 45 II. Type of shipments 46 III. Shipping Companies dealing in Export, Import and Both 47 IV. List of Heavily Imported Items 48 V. List of heavily Exported Items 49 VI. Shipment Terms Preferences 50 VII. Consideration for finalizing shipments 51 VIII. Change of Existing Forwarder or Shipping Line 52 IX. Change of Customs House Agent 53
  • 10. 10 | P a g e List of figures S. No. Topics Page no. I. Customs Clearance 15 II. Logistics Activities 16 III. Type of Containers 17 IV. Logistics Museums 25 V. Shipping Container Dimensions 26-27
  • 11. 11 | P a g e CHAPTER: 1 AN OVERVIEW OF CARE CONTAINER LINES PRIVATE LIMITED
  • 12. 12 | P a g e COMPANY PROFILE Company Name Care Container Lines Private Limited Founded In 2004 Slogan All Services under one roof Chairperson Mr. Kaushik Roy Type of Business Logistics Services Head office Kolkata Other Offices New Delhi, Mumbai, Chennai, Ludhiana, Malaysia, Nepal, Singapore Website www.carecontainerlines.net INTRODUCTION Care Container Lines Private Limited is a Logistics and Supply chain Service Provider. The company over the years has established itself as a Specialist Operator in India with a large customer base. It now has offices in various ports and important ICD’s servicing the logistics requirements of Importers and Exporters throughout the country. The company strives to provide very high standards of shipping solutions to their customers using this global network and well established Agents worldwide. Our offices in India and our International Network work in close cooperation linking this Globe in close unity.
  • 13. 13 | P a g e OVERVIEW History of Inception: The journey since 2004 has set in motion the belief in overcoming all issues without compromising on Service. During this time, the strength of our services and overseas contact coupled with ingenuity of our thought process has helped us to evolve a first time in the industry. Single Window Clearance for Imports from any part of the Globe. The market has not been immune to such uniqueness in services and this is reflected by our standard monthly average of handling 250 TEU’s LCL shipment in the 4 Metros of the country. With undisputed leadership in Import/Export LCL shipment this is now actively working towards complete Logistics Solutions by both Air and Sea with complete operational infrastructure of its Own Offices at all Metros and Port Account to match our operational efficiency. In addition to keeping updated on a regular basis regarding cargo status, it is keenly observant regarding the shortest possible transit time for keeping business interest on a high priority. It is committed to see people being able to take delivery of their cargoes in the shortest possible time and work tirelessly to overcome the issues created by congestions in the port and warehouses. All these are possible because of our tireless pursuit to achieve perfection and our ingrained philosophy in maintaining excellent rapport with the officialdom. The revolution in trade by transportation of cargoes through containers started as early as in 1968 by MacLean, a humble truck driver at that time. Over a period of time innumerable developments and modification has driven the trade into a high intensity growth curve on a consistent basis. In this background A Team of Young and Highly Trained Professionals all comfortably employed in the leading organization of the trade came together and gave birth to Care Container Lines Kolkata which is now known as Care Container Lines Private Limited. Company also possess the various port accounts in major ports in India like KOLKATA, HALDIA, NSICT, GTI, JNPT, ICD MULUND, CHENNAI, ICD DELHI PPG, TKD, LONI, FARIDABAD, DADRI, GARHI HARSARU, PATLI, ICD JAIPUR, ICD ANKLESWAR, ICD LUDHIANA, MUNDRA, KANDLA, PIPAVAV, SINGAPORE, MALAYSIA WEST PORT. CARE CONTAINER LINES SDN BHD is PRINCIPAL in Malaysia and H/O at KOLKATA where it has own containers for Bangkok, Leam Chabang, Yangoon, Port Kelang, Pasir Gudang, Pennang, Hong Kong, Dubai, Jakarta, Singapore, Shanghai, Ningbo, Tianjin, Ho Chi Minh, Haiphong, Nhavasheva, Mundra, ICD Ludhiana, ICD Ankleswar, ICD Mulund, ICD Garhi Harsaru, ICD Patli, ICD Jaipur, ICD TKD, ICD PPG, ICD Dadri, ICD Faridabad Loni. Bandarabbas, Shymkant, Tashkent, Almaity, Baku, Karachi, Colombo, Ashghabat, Nukus, and Ankran & Chittagong apart from this we are providing our services from World Wide by the annual rate contract with the Premium Liners like HANJIN, MAERSK, APL, K-LINE, and MSC. It is armored with worldwide agents along with their agency to bring any cargo from any part of the GLOBE with exclusive services in terms to provide you A SINGLE WINDOW services.
  • 14. 14 | P a g e Logistics Management: Logistics management is that part of the supply chain that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer requirements. A professional working in the field of logistics management is called a logistician. Services: During its Nine years of operation, CCPL has developed itself into an integrated Logistics service provider with core strengths in:  Air Freight Consolidation  Ship and Aircraft Chartering  Ocean Freight  Project Shipment  Customs Clearance  Non Vessel Operating Common Carrier(NVOCC) Port Agency Services:  Provide Principles with accurate estimated D/A before vessel’s arrival.  Actual D/A updated with Port Tariff dispatched to principles within reasonable period from vessel’s sailing.  Furnish principles with port facilities, port restrictions and regulations.  Provide master with berthing prospects as given by the Port Authority.  Update principles and master with accurate reports/data Berthing - Arrival-Departure – Operation Prospects – weather conditions  Complete Cargo documents/facts.  Dispatch final statement of account to principles with original invoices on monthly basis.  Cargo is imported and exported to from major destinations, i.e. East – China – Middle East – North Europe – U.S.A – Mediterranean Ports. Bunkering: Being in direct contact with the major bunker suppliers in India in addition to its strong market position, company ensures safe delivery of quality bunker products at competitive prices. They are available for orders round the clock including holidays furnishing their principles with the latest internationally posted prices. The most competitive discounts on large orders. The best payment and Credit terms and their offices place people’s stem quickly and directly with suppliers and safeguards and coordinate local delivery with 24 hours. Communication and the cooperation of local agents. We are able to accept and place stems at short notice.
  • 15. 15 | P a g e Inland Transportation and Project: Care Container Lines Pvt. Ltd. operates an extensive fleet of trucks/trailers to enable us to meet the increasing demand of the Indian Market. The structure of our fleet makes it possible to carry almost all sizes of over-dimensioned cargo/ super containers, bulk cargoes. It operates all over India. Process involved in Inland Transportation:  Cargo Pick up facility round the clock by own fleets of close body trucks.  Transportation of air Cargo, Custom Cleared in hinterlands to International airport.  Transport of Goods from port of discharge to hinterland destination in conjunction with their overseas partners  Offers “door to door” delivery of cargoes Custom Clearance: This company has unique expertise in handling and clearing of all kinds of commodities Import and Export efficiently. All shipments irrespective of size are handled equally efficiently and with utmost care and dispatched in the shortest possible time. Their customs clearance services include:  Customs Documentation  Carting and Receiving Goods  Examining of Shipments  Handling of stuffing and De – Stuffing at ports  ICD’s and customs warehouse
  • 16. 16 | P a g e Consolidation service: It is one of the major activities in care container Lines Pvt. Ltd. It offers weekly LCL Service to more than 49 destinations worldwide through direct calls for Calcutta, Mumbai and Delhi. Buyer consolidation program is quite often tailored, apart from their standard manual, logistics services and order tracking as well. Parcels are tracked smoothly by their centered head office to keep their partners well informed about cargo status just through their efficient communication network. They are able to handle our shipments from any place into India by Air and Sea with attractive rates and tracking services to ensure shipment under control and arrival in Time. They promise “We will turn our experience to your advantages”. Their consolidation service offers the advantages of competitive Freight rates, Competitive insurance Premiums, reduced risks of pilferage and reduced packing costs. They make all assignments for combining of goods at origin and separation of cargo at destination. This means that people can enjoy economic benefits of consolidated shipments, without the concerns of separating our goods at destination. Logistic Activities: The employees of this company introduce themselves as specialists in International freight forwarding and all kinds of logistics activities with vast experience of handling all kinds of cargo for both Imports and Exports. Having an extensive network of associates/agents on International Front. They are not limited to any carrier or service. Their knowledge will afford the best possible routing and rates at any given moment. They have the most efficient and effective answers to your different questions. They offer bonded warehousing containerization export packing and creating and inland transportation coordination. Under their management, People are assured of single company control of our shipments throughout India and Worldwide.
  • 17. 17 | P a g e Types of containers (DRY, FLAT RACK, OPEN TOP) CONTAINER SPECIFICATION: 1. Dry Storage Container The most commonly used shipping containers; they come in various dimensions standardized by ISO. They are used for shipping of dry materials and come in size of 20ft & 40 ft. 2. Flat Rack Container With collapsible sides, these are like simple storage shipping containers where the sides can be folded so as to make a flat rack for shipping of wide variety of goods. 3. Open Top Container With a convertible top that can be completely removed to make an open top so that materials of any height can be shipped easily.
  • 18. 18 | P a g e Logistics Fields:  Procurement logistics: It consists of activities such as market research, requirements planning, make-or-buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory: maximizing efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, or minimizing procurement costs while maximizing security within the supply process.  Distribution logistics: It has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.  Disposal logistics: It has as its main function to reduce logistics cost(s) and enhance service(s) related to the disposal of waste produced during the operation of a business.  Reverse logistics: It denotes all those operations related to the reuse of products and materials. The reverse logistics process includes the management and the sale of surpluses, as well as products being returned to vendors from buyers. Reverse logistics stands for all operations related to the reuse of products and materials. It is "the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. More precisely, reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. The opposite of reverse logistics is forward logistics.  Green Logistics: It describes all attempts to measure and minimize the ecological impact of logistics activities. This includes all activities of the forward and reverse flows. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics.  RAM Logistics: It (see also logistic engineering) combines both business logistics and military logistics since it is concerned with highly complicated technological systems for which Reliability, Availability and Maintainability are essential, ex: weapon systems and military supercomputers.  Asset Control Logistics: Companies in the retail channels, both organized retailers and suppliers, often deploy assets required for the display, preservation, promotion of their
  • 19. 19 | P a g e products. Some examples are refrigerators, stands, display monitors, seasonal equipment, poster stands & frames.  Emergency logistics: It is a term used by the logistics, supply chain, and manufacturing industries to denote specific time-critical modes of transport used to move goods or objects rapidly in the event of an emergency. The reason for enlisting emergency logistics services could be a production delay or anticipated production delay, or an urgent need for specialized equipment to prevent events such as aircraft being grounded (also known as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure. Emergency logistics services are typically sourced from a specialist provider.  Production Logistics: The term production logistics describes logistic processes within a value adding system (ex: factory or a mine). Production logistics aims to ensure that each machine and workstation receives the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through value-adding processes and to eliminate non–value-adding processes. Production logistics can operate in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency. Production logistics becomes more important with decreasing batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch size of one, allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is an essential part of production logistics due to product safety and reliability issues, is also gaining importance, especially in the automotive and medical industries. Business Logistics: One definition of business logistics speaks of "having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer". Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, supply chains, and resultant efficiencies. The term "business logistics" has evolved since the 1960s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians". In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the
  • 20. 20 | P a g e organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization. There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carry out some project (ex: restructuring a warehouse). Nodes of a distribution network: The nodes of a distribution network include:  Factories where products are manufactured or assembled  A depot or deposit is a standard type of warehouse thought for storing merchandise (high level of inventory).  Distribution centers are for order processing and order fulfillment (lower level of inventory) and also for receiving returning items from clients.  Transit points are built for cross docking activities, which consist in reassembling cargo units based on deliveries scheduled (only moving merchandise).  Traditional retail stores of the Mom and Pop variety, modern supermarkets, hypermarkets, discount stores or also voluntary chains, consumer cooperative, groups of consumer with collective buying power. Note that subsidiaries will be mostly owned by another company and franchisers, although using other company brands, actually own the point of sale. There may be some intermediaries operating for representative matters between nodes such as sales agents or brokers. Logistic families and metrics: A logistic family is a set of products which share a common characteristic: weight and volumetric characteristics, physical storing needs (temperature, radiation,), handling needs, order frequency, package size, etc. The following metrics may be used by the company to organize its products in different families. Physical metrics used to evaluate inventory systems include stocking capacity, selectivity, superficial utilization, volumetric utilization, transport capacity, transport capacity utilization. Monetary metrics used include space holding costs (building, shelving and services) and handling costs (people, handling machinery, energy and maintenance).
  • 21. 21 | P a g e Other metrics may present themselves in both physical and monetary form, such as the standard Inventory turnover. Unit loads are combinations of individual items which are moved by handling systems, usually employing a pallet of normed dimensions. Handling systems include: trans-pallet handlers, counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers, and AGV and stacker handlers. Storage systems include: pile stocking, cell racks (either static or movable), cantilever racks and gravity racks. Order processing is a sequential process involving: processing withdrawal list, picking (selective removal of items from loading units), sorting (assembling items based on destination), package formation (weighting, labeling and packing), and order consolidation (gathering packages into loading units for transportation, control and bill of lading). Picking can be both manual and automated. Manual picking can be both man to goods, i.e. operator using a cart or conveyor belt, or goods to man, i.e. the operator benefiting from the presence of a mini-load ASRS, vertical or horizontal carousel or from an Automatic Vertical Storage System (AVSS). Automatic picking is done either with dispensers or DE palletizing robots. Sorting can be done manually through carts or conveyor belts, or automatically through sorters. Transportation Cargo, i.e. merchandise being transported, can be moved through a variety of transportation means and is organized in different shipment categories. Unit loads are usually assembled into higher standardized units such as: ISO containers, swap bodies or semi-trailers. Especially for very long distances, product transportation will likely benefit from using different transportation means: multimodal transport, intermodal transport (no handling) and combined transport (minimal road transport). When moving cargo, typical constraints are maximum weight and volume. Operators involved in transportation include: all train, road vehicles, boats, airplanes companies, couriers, freight forwarders and multi-modal transport operators. Merchandise being transported internationally is usually subject to the Incoterms standards issued by the International Chamber of Commerce. Configuration and management: Similarly to production systems, logistic systems need to be properly configured and managed. Actually a number of methodologies have been directly borrowed from operations management such as using Economic Order Quantity models for managing inventory in the nodes of the network. Distribution resource planning (DRP) is similar to MRP, except that it doesn't concern activities inside the nodes of the network but planning distribution when moving goods through the links of the network.
  • 22. 22 | P a g e Traditionally in logistics configuration may be at the level of the warehouse (node) or at level of the distribution system (network). Regarding a single warehouse, besides the issue of designing and building the warehouse, configuration means solving a number of interrelated technical-economic problems: dimensioning rack cells, choosing a palletizing method (manual or through robots), rack dimensioning and design, number of racks, number and typology of retrieval systems (e.g. stacker cranes). Some important constraints have to be satisfied: fork and load beams resistance to bending and proper placement of sprinklers. Although picking is more of a tactical planning decision than a configuration problem, it is important to take it into account when deciding the racks layout inside the warehouse and buying tools such as handlers and motorized carts since once those decisions are taken they will work as constraints when managing the warehouse, same reasoning for sorting when designing the conveyor system and/or installing automatic dispensers. Configuration at the level of the distribution system concerns primarily the problem of location of the nodes in a geographic space and distribution of capacity among the nodes. The first may be referred to as facility location (with the special case of site selection) while the latter to as capacity allocation. The problem of outsourcing typically arises at this level: the nodes of a supply chain are very rarely owned by a single enterprise. Distribution networks can be characterized by numbers of levels, namely the number of intermediary nodes between supplier and consumer:  Direct store delivery, i.e. zero levels  One level network: central warehouse  Two level network: central and peripheral warehouses This distinction is more useful for modeling purposes, but it relates also to a tactical decision regarding safety stocks: considering a two level network, if safety inventory is kept only in peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory is distributed among central and peripheral warehouses it is called an independent system (from suppliers). Transportation from producer to the second level is called primary transportation, from the second level to consumer is called secondary transportation. Although configuring a distribution network from zero is possible, logisticians usually have to deal with restructuring existing networks due to presence of an array of factors: changing demand, product or process innovation, opportunities for outsourcing, change of government policy toward trade barriers, innovation in transportation means (both vehicles or thoroughfares), introduction of regulations (notably those regarding pollution) and availability of ICT supporting systems (e.g. ERP or e-commerce). Once a logistic system is configured, management, meaning tactical decisions, takes place, once again, at the level of the warehouse and of the distribution network. Decisions have to be made under a set of constraints: internal, such as using the available infrastructure, or external, such as complying with given product shelf life and expiration dates.
  • 23. 23 | P a g e Picking efficiency varies greatly depending on the situation. For man to goods situation, a distinction is carried out between high level picking (vertical component significant) and low level picking (vertical component insignificant). A number of tactical decisions regarding picking must be made:  Routing path: standard alternatives include transversal routing, return routing, midpoint routing and largest gap return routing  Replenishment method: standard alternatives include equal space supply for each product class and equal time supply for each product class.  Picking logic: order picking vs. batch picking At the level of the distribution network, tactical decisions involve mainly inventory control and delivery path optimization. Note that the logistician may be required to manage the reverse flow along with the forward flow. Warehouse management and control: Although there is some overlap in functionality, warehouse management systems (WMS) can differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor supervisor, working in real time to get the job done by the most effective means. For instance, a WMS can tell the system that it is going to need five of stock-keeping unit (SKU) A and five of SKU B hours in advance, but by the time it acts, other considerations may have come into play or there could be a logjam on a conveyor. A WCS can prevent that problem by working in real time and adapting to the situation by making a last-minute decision based on current activity and operational status. Working synergistically, WMS and WCS can resolve these issues and maximize efficiency for companies that rely on the effective operation of their warehouse or distribution center. Logistics outsourcing: Logistics outsourcing involves a relationship between a company and an LSP (logistic service provider), which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and thus has a strategic nature. Outsourcing does not have to be complete externalization to a LSP, but can also be partial:  A single contract for supplying a specific service on occasion  Creation of a spin-off  Creation of a joint venture Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.
  • 24. 24 | P a g e The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (now Accenture) as an integrator that assembles the resources, planning capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer. Logistics Automation: Logistics automation is the application of computer software and/or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center, with broader tasks undertaken by supply chain management systems and enterprise resource planning systems. Industrial machinery can typically identify products through either Bar Code or RFID technologies. Information in traditional bar codes is stored as a sequence of black and white bars varying in width, which when read by laser is translated in a binary sequence, which according to fixed rules can be converted in a decimal number. Sometimes information in a bar code can be transmitted through radio frequency, more typically radio transmission is used in RFID tags. An RFID tag is card containing a memory chip and an antenna which transmits signals to a reader. RFID may be found on merchandise, animals, and vehicles and people as well. Logistics: profession and organizations: A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company, such as a shipping line, airport, or freight forwarder, or within the logistics department of a company. However, as mentioned above, logistics is a broad field, encompassing procurement, production, distribution, and disposal activities. Hence, career perspectives are broad as well. A new trend in the industry are the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services. Some universities and academic institutions train students as logisticians, offering undergraduate and postgraduate programs. A university with a primary focus on logistics is Kühne Logistics University in Hamburg, Germany. It is nonprofit and supported by Kühne-Foundation of the logistics entrepreneur Klaus Michael Kühne. The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom in 1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions for the logistics and transport sectors that offers professional qualifications or degrees in logistics management. CILT programs can be studied at centers around UK, some of which also offer distance learning options. The institute also have overseas branches namely The Chartered Institute of Logistics & Transport Australia (CILTA) in Australia and Chartered Institute of Logistics and Transport in Hong Kong (CILTHK) in Hong Kong.
  • 25. 25 | P a g e The International Association of Public Health Logisticians (IAPHL) is a professional network that promotes the professional development of supply chain managers and others working in the field of public health logistics and commodity security, with particular focus on developing countries. The association supports logisticians worldwide by providing a community of practice, where members can network, exchange ideas, and improve their professional skills. Logistics museums: There are many museums in the world which cover various aspects of practical logistics. These include museums of transportation, customs, packing, and industry-based logistics. However, only the following museums are fully dedicated to logistics: General logistics:  Museum of Logistics (Tokyo, Japan)  Logistics Museum (Saint Petersburg, Russia)  Military logistics:  Royal Logistic Corps Museum (Surrey, England, United Kingdom)  The Canadian Forces Logistics Museum (Montreal, Canada)
  • 26. 26 | P a g e Shipping Container Dimensions STANDARD 20' INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT DOOR WIDTH DOOR HEIGHT CAPACITY TARE WEIGHT MAX. CARGO 19'4" 7'8" 7'10" 7'8" 7'6" 1,172 ft³ 4,916 lb 47,999 lb 5.89 m 2.33 m 2.38 m 2.33 m 2.28 m 33.18 m³ 2,229 kg 21,727 kg STANDARD 40' HIGH CUBE 40' INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT DOOR WIDTH DOOR HEIGHT CAPACITY TARE WEIGHT MAX. CARGO 39'5" 7'8" 7'10" 7'8" 7'6" 2,390 ft³ 8,160 lb 59,040 lb 12.01 m 2.33 m 2.38 m 2.33 m 2.28 m 67.67 m³ 3,701 kg 26,780 kg 39'5" 7'8" 8'10' 7'8" 8'5" 2,694 ft³ 8,750 lb 58,450 lb 12.01 m 2.33 m 2.69 m 2.33 m 2.56 m 76.28 m³ 3,968 kg 26,512 kg OPEN TOP 20' (upgraded also available) OPEN TOP 40' INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT DOOR WIDTH DOOR HEIGHT CAPACITY TARE WEIGHT MAX. CARGO 19'4" 7'7" 7'8" 7'6" 7'2" 1,136 ft³ 5,280 lb 47,620 lb 5.89 m 2.31 m 2.33 m 2.28 m 2.18 m 32.16 m³ 2,394 kg 21,600 kg 39'5" 7'8" 7'8" 7'8" 7'5" 2,350 ft³ 8,490 lb 58,710 lb 12.01 m 2.33 m 2.33 m 2.33 m 2.26 m 66.54 m³ 3,850 kg 26,630 kg REEFER 20' REEFER 40'
  • 27. 27 | P a g e INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT DOOR WIDTH DOOR HEIGHT CAPACITY TARE WEIGHT MAX. CARGO 17'8" 7'5" 7'5" 7'5" 7'3" 1,000 ft³ 7,040 lb 45,760 lb 5.38 m 2.26 m 2.26 m 2.26 m 2.20 m 28.31 m³ 3,193 kg 20,756 kg 37'8" 7'5" 7'2" 7'5" 7'0" 2,040 ft³ 10,780 lb 56,276 lb 11.48 m 2.26 m 2.18 m 2.26 m 2.13 m 57.76 m³ 4,889 kg 25,526 kg FLAT RACK 20' FLAT RACK 40' INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT TARE WEIGHT MAX. CARGO 18'5" 7'3" 7'4" 5,578 lb 47,333 lb 5.61 m 2.20 m 2.23 m 2,530 kg 21,469 kg 39'7" 6'10" 6'5" 12,081 lb 85,800 lb 12.06 m 2.08 m 1.95 m 5,479 kg 38,918 kg FLAT RACK COLLAPSIBLE 20' FLAT RACK COLLAPSIBLE 40' INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT TARE WEIGHT MAX. CARGO 18'6" 7'3" 7'4" 6,061 lb 61,117 lb 5.63 m 2.20 m 2.23 m 2,749 kg 27,722 kg 39'7" 6'10" 6'5" 12,787 lb 85,800 lb 12.06 m 2.08 m 1.95 m 5,800 kg 38,918 kg PLATFORM 20' PLATFORM 40' INSIDE LENGTH INSIDE WIDTH INSIDE HEIGHT TARE WEIGHT MAX. CARGO 19'11" 8'0" 7'4" 6,061 lb 52,896 lb 6.07 m 2.43 m 2.23 m 2,749 kg 23,993 kg 40'0" 8'0" 6'5" 12,783 lb 66,397 lb 12.19 m 2.43 m 1.95 m 5,798 kg 30,117 kg
  • 28. 28 | P a g e Freight terms Freight Tptn fm Customs Port Cost Ocean Port Custom Tptn fm terms factory clg cost Freight Cost Clg cost port to to port from factory (Origin) (origin) (origin) Origin to (Destn) (Destn) (Destn) Destinatn CIF Exporter Exporter Exporter Exporter Importer Importer Importer (Cost , Insurance , Freight) FOB Exporter Exporter Exporter Importer Importer Importer Importer (Free on Board) EX WORKS Importer Importer Importer Importer importer Importer Importer DOOR DELIVERY Exporter Exporter Exporter Exporter Exporter Exporter Exporter FCA Export Importer Importer Importer Importer Importer Importer Classification of Shipping Companies Shipping Bill of Containers Ship Company Lading Satus (BL) Liner/ Main Line operator Yes Yes Yes MLO NVOCC Yes Yes No (Non vessel operatorof containerised cargo) Freight Forwarder Yes No No
  • 29. 29 | P a g e Import Marketing Strategy (Since Care Container Lines main activity revolves around imports, the following are strength areas, which other companies do not have). LCL Import: The company tells the consignees the following when we are marketing for LCL, a) They will get a single window delivery from our office, which means that they do not have to go to various forwarders and pay multiple DO charges ranging from Rs.3000 to Rs.3500. If there are even 3 forwarders, there is a cost of around Rs.9000 to Rs.10500 additional. Hence for a 3 CBM cargo , if our quote is $65 from Hamburg (say) and our competitor offers $ 50 , the shipper at the outset may seem to pay $ 45 more (Rs.2250 ), but it is more than compensated by his avoiding (Rs.9000 to Rs.12000). The worst part is that the consignee till the last moment does not know how many forwarders will be involved. All this can be avoided. b) Even after paying the above charges , the consignee has to go to 4 to 5 places , which not only kills his time, but also results in wrong documentation due to lack of communication between so many the agents , who might forward the documents delayed. This further adds up to costs in the form of supplementary IGM, amendments etc. Finally late release of goods and incurring demurrage, disrupted production schedule and mental trauma. c) Company can offer a unique service, wherein it can bring the cargo in our box irrespective where the origins are. Since they will be bringing all these cargoes to Singapore /Hong Kong and then we will form our box with these cargoes for the Indian Ports. d) If the cargo moves through CCL, they will get the tracking of the cargo accurately. Moreover there is prompt and courteous service as well. Since there is a general tendency from the shipping companies at destination that the consignee has to release the goods and any kind of a behavior can be given as the ball is in their court. e) If the cargo is on regular basis, even without availability of documents, Company release the cargo. Later stages when full trust and faith has been established.
  • 30. 30 | P a g e FCL Import: a) Certain points are common to LCL, but the most important point is the duty factor for FCL. When a cargo comes to Indian port (matter of fact, to any port in the world), the duty is calculated on CIF value (even though the cargo moves on FOB), which means if the cargo arrives on FOB basis, freight will be added to it and then the duty will be calculated. So if a cargo from US comes and the ocean freight is $ 2800 per container and the duty of the commodity is 60 %, when it comes to Mumbai, the duty hike due to freight will be $ 2800 x 60 % = $ 1680, now if we give the client a freight certificate of $ 1600, the duty element will be $ 1600 x 60% = $ 960, which means a saving of $ 720 ($ 1680 - $ 960), therefore eve if we sell $ 300 more and are able to make the consignee understand this, he will agree to give us the business. b) If the company can be pally with the shipping line, it can have excellent rates filed in company’s favor, since very people are doing import marketing. C) Moreover Company can make some money on detention, by committing 5 days to the client and getting 14 days from the shipping lines.
  • 31. 31 | P a g e CHAPTER: 2 LITERATURE REVIEW
  • 32. 32 | P a g e An attempt has been made to review some existing literature available and having broad relatively with the subject area. “International Journal of Production Economics”, Research and Applications in E- commerce and Third – Party Logistics Management, Vol. 113, issue 1, May 2008, Pages 127-147. Third – Party Logistics has attracted considerable Research attention in the recent past. Despite the growing body of Literature on this Topic, Precious little effort has been devoted to synthesizing the overall state of art of Research on TPL. Patterson, “Transportation Research Part E: Logistics and Transportation Review” Vol.47, Issue 4, July 2011, Pages 547-570. The aim of the research described in this paper is to evaluate the relationship between the service capabilities and performance of UK and Taiwanese third-party logistics (3PL) providers. A study is presented based on a recent survey. The results identify the most important services offered by 3PLs and the most important aspects of 3PL operational performance. The results also suggest that excellence in operations is more important than wide-ranging service provision. Furthermore, the research suggests that the range of service provision offered by 3PLs does not directly influence the 3PLs’ financial performance. However, 3PL providers with service capabilities that correspond to the key priorities of customers will gain superior financial performance through a better operational performance. Andrew C. Lyons, “How different is carrier choice for third party logistics companies?” Volume 47, Issue 4, July 2011, Pages 547-570. The purpose of this paper is to test whether third party logistics companies (3PLs) are different from other end-shippers with respect to how they choose their carriers. The results of carrier choice models developed in this paper suggest that 3PLs are more biased against intermodal shipping than other end-shippers. The principal conclusions are as follows: mode and carrier choice modeling needs to take into consideration differences between 3PLs and other end-shippers; and with the increasing role of 3PLs in choosing carriers, their stronger bias against intermodal shipping will present further challenges to increasing freight rail mode share.
  • 33. 33 | P a g e Valentina Carbone, “Growth and relational strategies used by the European logistics service providers: Rationale and outcomes” Volume 41, Issue 6, November 2005, Pages 495-510. This article reports on research into the ways European providers of logistics and transport services develop and grow. The strategic behavior adopted by the leading 20 third-party European logistics service providers (3PLs) between 1998 and 2004 is examined, particularly their approach to mergers and acquisitions (M&A) and logistics alliances. It shows that while growth among 3PLs is aimed at providing more cohesive European logistics coverage, national culture constrains their efforts. More consolidation within the 3PL industry is expected. A few market leaders offer a wide range and scope of services, while most other firms have a diversified portfolio of interests. “Logistics Companies experience growth pangs”, Sept 8, 2008, Economics Times Bureau Logistics companies in India and the companies that offer consulting services to them seem to have come up against a major developmental block in their growth trajectory. According to consultants ETSL talked to, at least half a dozen leading logistics providers are seriously looking at ways of expanding their basket of services to become all inclusive, one-stop shop for services incorporating sea, air, land and other supply chain logistics services. “Indian logistics companies scale the Great Wall”, May 2, 2005, Sachin Baxi / ETIG, TNN If China is the factory of the world, then the goods manufactured there have to be shipped out as well. With the quantum of trade rising every year between China and India, plus China's accession to the WTO, the market for logistics in China is expanding at a frenetic pace. The Olympics, to be hosted in '08, is offering a further boost to materials movement. Indian service providers are angling for a slice of that pie. “Logistics companies Indian arms liable for tax”, November 12, 2004, M Padmakshan, Foreign logistics companies operating in India through their Indian subsidiaries are liable to be taxed in India, says a recent decision by the Authority for Advance Ruling (AAR) on an application. The AAR was ruling on an application filed by UPS Jet air Express, which is a joint venture between global logistics major UPS International Forwarding and Jet Air. “Growing online retail industry a boon for logistics companies”, February 21, 2014, Radhika P Nair, ET Bureau
  • 34. 34 | P a g e The race to sort, package and ship millions of products that Indians are buying online is becoming a hotly contested one in the Indian logistics industry as several companies launch innovative services to grab the growing business “Improving Operations with a Yard Management System”, April 2015, thought Leaders, Nathan Harris, President, Yard view Two main roles come to mind—Visibility and Communication. Today's best systems offer visibility into basic information including the location, status, and contents of assets on the yard. They are also able to offer more detailed information including historical data, load detail down to the SKU, and accountability of who is performing tasks and when. Communication plays a huge role in providing updates and access to key information for all necessary parties. These include the gate staff, yard drivers, dock personnel, warehouse managers, carriers, and customers. A yard management tool may be the first time all of the groups are able to access the same up-to-date information in one place. Operations teams, customers, and carriers may choose to receive e-mail or text communications for key yard events either passing or approaching. Old communication techniques like phone calls and faxes are replaced by real-time information that is correct and always up to date. “Building a Smarter Warehouse”, May 2015, Feature Stories, by Joseph O’ Reilly Warehouse perceptions have changed considerably over the past two decades. It wasn't long ago that users perceived the four walls as just that—a fixed, immovable force that served as the nexus for any distribution network. Today, such representations are increasingly obsolete largely because of forces beyond the four walls. Cloud computing, e-commerce, Omni channel management, big data, and last-mile logistics are reshaping today's distribution facility. The warehouse is still core. But its role in the supply chain is much more fluid. The modern DC is molded by countless external pressures that are eroding convention and shaping invention. Technology and materials handling innovation have become important catalysts in the evolution of smarter warehouses. “Communication is Key When Optimizing Logistics Networks”, Commentary Viewpoint, by Jeff Vielhaber Within any logistics network there are vendors, warehouses, distribution centers, service operations, transportation routes and hubs, carriers, freight forwarders, importers, exporters, and more. The idea of optimizing all of it is enough to give anyone a splitting headache. The goal of optimization is to reduce costs while becoming more efficient. To do this, some companies hire analysts; others employ the latest and greatest technologies. We often think by simply getting advice or upgrading our systems we’ll accomplish our goals, only to find that we come up short. Many seem to forget about communication. New technologies must either communicate with current technology or replace it all together. If a company hires an expert for advice, that advice needs to be shared and acted upon in all departments.
  • 35. 35 | P a g e “3PLs Put Technology Front and Center”, April 2015, Feature Stories, Merrill Douglas Certainly, many respected 3PLs use software developed by other firms to help run their businesses, and run them well. But some 3PLs have brought the technology expertise in- house, creating their own systems for transportation management, business analytics, and other key functions. 3PLs with proprietary systems mainly use them within their own four walls, to support services to customers. But some 3PLs also market their solutions, either as standalone products or as part of their service offerings. For smaller shippers, licensing technology (or, more likely, subscribing to a cloud-based service) from a 3PL can be an attractive proposition. A company that can't otherwise afford to buy and maintain cutting- edge technology gains a solution originally developed to serve a large, sophisticated operation. Even a big shipper might choose this option, so it can focus resources on functions more central to its mission. “Building a Bridge to Continuous Improvement”, January 2015, Case Studies, Casebook The good news: L.B. Foster was rapidly growing. The bad news: that growth made it a struggle to keep up with transportation and logistics demands. By turning to a third-party logistics provider, L.B. Foster was able to implement an enterprise logistics solution that can handle as much freight as the company can enter—quickly and efficiently. Pittsburgh- based L.B. Foster supplies transportation, construction, utility, energy, recreation, and agriculture markets with materials to build and maintain infrastructure. As a manufacturer, fabricator, and distributor of quality materials, the company is committed to meeting customer requirements and increasing their satisfaction through continual product and service improvements. This drive toward improvement has had a dynamic effect on L.B. Foster's logistics and transportation processes. "In 2009, we identified a pressing need to improve the way we handled freight," says Arnie McCauley, material services manager at L.B. Foster. The company was growing rapidly, but was using methods that didn't allow it to easily keep up with the demand to place freight. It didn't have an easy way to secure contracts with carriers other than running inquiries on a homegrown system with a rudimentary rate structure driving the database. “Demand for tech innovators to go up in Indian logistics industry”, February 27, 2015, ET Bureau, by Amrita Premranjan, Timesjobs.com bureau The Indian e-commerce boom is leading to an increased competition within the logistics industry. To build a strong competitive edge, logistics companies are set to bring onboard Innovation Managers and Tech Evangelists.
  • 36. 36 | P a g e “Logistics companies looking for funds to build scale & be GST-ready”, November 2014, Megha Mandavia, ET Bureau An expected roll out of Goods and Service Tax (GST) is pushing privately-held logistics companies to look for funds from private equity firms, strategic investors and public listing in order to finance massive expansion in warehouses and fleet. The logistics sector will see a slew of deals in the next one year as international and domestic investors scout for targets, while companies look to unlock value. Experts say larger companies in will look at a public listing while mid-sized companies will seek strategic or PE funding. “Logistics industry will grow because organized logistics is growing in India”, October 13, 2008, ET Bureau Juzar Mustan, CEO of AFL Logistics At a time when retail is undergoing through a challenging phase in its evolution in India, Juzar Mustan, CEO of AFL Logistics, shares his insight to it and tells ETSL why he is confident of the industry in the country how is the retail sector faring in India? Retail is going through challenging times. The business is under siege from within as many players are trying to outdo the other. “Logistics sector: Right time to accumulate stocks”, June 9, 2008, Karan Sehgal, TNN Though stocks in the logistics sector have fallen more than the broad market since January '08, the results of the March '08 quarter show that logistics companies have performed much better in this quarter than the past three quarters. The net sales and net profits of logistics companies (excluding shipping companies) posted growth rates of 16.4% and 24.7%, respectively, in the March '08 quarter. There are signs of clear improvement in operating and net margins, thanks to the efforts of companies to diversify into high-margin businesses like third-party supply chain management and managing container terminals. “Transforming India’s logistics infrastructure”, September 2010, Mc Kinsey by Rajat Gupta, Hemang Mehta and Thomas Netzer Logistics infrastructure is a critical enabler of India’s agenda for economic development and urbanization. Recognizing its pivotal role, the Indian government will have tripled annual spending on logistics infrastructure over the past seven years, from about $10 billion in 2003 to $30 billion in 2010. Despite this increase, the country’s network of roads, rail, and waterways will be insufficient to accommodate a threefold increase in freight movement over the coming decade. This shortfall in logistics infrastructure will put India’s growth at risk, concludes a new McKinsey report, Building India: Transforming the nation’s logistics infrastructure.
  • 37. 37 | P a g e Since a large part of the logistics network that India needs has yet to be built, the country has a chance to add infrastructure optimally to meet the growing demand. The report finds that to achieve this goal, India must pursue an integrated and coordinated approach that not only closely aligns the development of each mode—railways, roads, and waterways— with the country’s needs but also makes better use of existing assets. This will require increasing the railways’ share of logistics infrastructure investments from about 40 percent currently to 50 percent. Building a logistics infrastructure capable of handling rising freight traffic more efficiently presents opportunities for user industries and for infrastructure developers and construction companies, among others, the report finds. “Logistics Services Market in India 2013”, February 19, 2013, Netscribes India Private Limited Logistics services market India is on a growth trajectory owing to rapid globalization and 100% FDI allowance. Logistics services broadly encompass courier services, freight forwarding, third party logistics and reverse logistics. Growth in international trade is providing huge impetus to the demand for the logistics services. Growing competition in retail sector transcends need of reverse logistics to handle returns and store up gradation. Third party logistics providers need to customize their services and charge competitive rates to benefit from retail boom in India. E-tailing has revamped shopping experience by transforming it from a weekend to anytime activity that is having a favorable impact on courier and reverse logistics sectors. “Third Party Logistics Practices: An India Perspective”, B. S. Sahay and Ramneesh Mohan Third party logistics (3PL) is a business dynamic of growing importance all over the world. However, it is at a very nascent stage in India, though some domestic and multinational companies are trying to establish themselves in this sector. This paper is an attempt to provide a 3PL perspective in India. The paper focuses on three major issues – present extent of usage of third party logistics services, reasons for outsourcing and impact of usage of third party logistics services on business results. The paper reveals that most 3PL users are satisfied with the current level of services provided by 3PL service providers as it has led to a positive impact on business results. As a result, the usage of third party logistics services is likely to increase substantially (40 percent) in the future.
  • 38. 38 | P a g e “Journal of Business Logistics”, Vol.13, No.2, 1992, the use of Third Party Logistics Services by Robert C. Lieb Northeastern University The concept of Third - Party Logistics has led to considerable debate within the Logistics Community. Those advocating the use of Third – Party Services contend that manufacturers should concentrate on their core Business, while allowing others to manage the Logistics Function. Such reliance upon Third – Parties might promote lower costs, better customer service, improved asset utilization, increased flexibility and access to leading edge technology. The functions performed by Third – Party can encompass the entire logistics process or selected activities within the process. Journal of Business Logistics, Vol. 19, No.1, 1998, “Selection Criteria for providers of Third – Party Logistics Services: An Exploratory Study” by Mohan K Menon, University of South Alabama Since deregulation of the Freight Transportation Industries, buying Logistics Services has become similar to the purchase of other types of industrial services. This exploratory study examines selection criteria for Logistics Service Providers and how these criteria are affected by the firm’s competitiveness and external environment. Lessons for Practitioners, Teachers and Researchers are provided. Rates charged, Market Entry and Exit and levels of service was administered by the Inter-state Commerce Commission. As a result buying of Logistics services was inhibited by the ability of providers to offer integrated service packages. “An empirical study on Supply Chain Management: the perspective of Logistics Service Providers”, Volume 6, Issue 1, International Journal of Logistics Systems and Management by T.N. Srikantha Dath, Chandrasekharan Rajendran, K. Narashiman A growing awareness that competitive advantage comes from the delivery process as much as from the products has been instrumental in regarding logistics as a key strategic function. The present work develops a valid and reliable instrument, covering various aspects of Supply Chain Management (SCM) in India, from the Logistics Service Provider's (LSP's) perspective and investigates the relationship between the factors of SCM and the measures of performance in a moderated environment. The findings indicate that the moderator (Supply Chain Orientation) appears to have a significant and positive effect on the relationship between the factors of SCM and the business performance measures of LSPs, but appears to have no significant effect on their financial measure of performance.
  • 39. 39 | P a g e “The Supply Chain Role of Third‐Party Logistics Providers”, the International Journal of Logistics Management, Volume 12, Issue 2 Outsourcing, the strategy in which organizations employ the services of external providers, has attracted growing interest. Academic and industrial attention has also focused on the role of seamless supply chain processes in achieving and sustaining competitive advantage. This research is based on petrol retailers in the UK that have adopted logistics outsourcing strategies for implementing supply chain solutions to their convenience‐goods operations. Its aim is to identify the factors, which influence outsourcing decisions and the nature and supply chain implications of outsourcing strategies. Research findings indicate that the capability of service providers to facilitate supply chain solutions is largely influenced by four main factors, which in turn substantially determine their role in the supply chain: the strategic orientation of the outsourcing organization; its perception of service providers' role within the logistics strategy; the nature of the resultant client‐provider relationship; and, the extent to which the logistics process is outsourced. Gøran Persson, Helge Virum, (2001) "Growth Strategies for Logistics Service Providers: A Case Study", The International Journal of Logistics Management, Vol. 12 Iss: 1, pp.53 – 64 This article is based on two studies, partly financed by the Norwegian Research Council. The first study was carried out in six organizations cooperating in two supply chain alliances. The purpose of this study was to develop a set of hypotheses concerning logistics service providers and their roles in supply chain alliances. The second study, involved interviews carried out in 12 different logistics organizations, and concerned their perception of future trends and future position. The purpose of this article is to highlight and to describe some of the major findings in the two studies on growth strategies for logistics service providers. We propose a matrix categorizing the players and their strategic position. Given the pressures in the industry and the individual strategic position, the strategic choices in fact are limited, leading to some dominating strategic directions that to a certain extent, also explain the structural changes in the industry. James C. Cooper, (1993) "Logistics Strategies for Global Businesses", International Journal of Physical Distribution & Logistics Management, Vol. 23 Iss: 4, pp.12 – 23 As businesses continue to globalize, attention has increasingly turned to logistics. Examines global logistics in depth, beginning with a brief overview, to provide a working context. Discusses the development of global logistics strategy, taking a bottom‐up approach. Assesses the effects of product‐market characteristics on strategy formulation and evaluates logistics strategy at business unit or company level. Considers the
  • 40. 40 | P a g e implications of global logistics strategies, detailing the critical success factors which apply and highlighting the need for organizational change. “Barriers to implement green supply chain management in automobile industry using interpretive structural modeling technique: An Indian perspective”, Vol.4, No 2 (2011), by Sunil Luthra, Vinod Kumar, Sanjay Kumar, and Abid Haleem Green Supply Chain Management (GSCM) has received growing attention in the last few years. Most of the automobile industries are setting up their own manufacturing plants in competitive Indian market. Due to public awareness, economic, environmental or legislative reasons, the requirement of GSCM has increased. In this context, this study aims to develop a structural model of the barriers to implement GSCM in Indian automobile industry. B.S. Sahay, Ramneesh Mohan, (2006) "3PL practices: an Indian perspective", International Journal of Physical Distribution & Logistics Management, Vol. 36 Iss: 9, pp.666 – 689 To carry out a comprehensive survey on 3PL practices in India and to establish the impact of usage of third party logistics services on business results. Begins by analyzing the studies carried out on 3PL practices and establishing a research framework. The input variables to the research framework depict the organization‐specific characteristics, such as the extent of usage of 3PL services, the reasons for outsourcing and the impact of the usage of 3PL services. The output function of future usage of 3PL services is influenced by the three input variables. Data collected through survey questionnaire on the input and output variables are used to establish impact of usage of 3PL services on business performance through statistical analysis. Rohit Bhatnagar, Amrik S. Sohal, Robert Millen, (1999) "Third party logistics services: a Singapore perspective", International Journal of Physical Distribution & Logistics Management, Vol. 29 Iss: 9, pp.569 – 587 Focusses on three constructs that we believe are the primary determinants of the future usage of third party logistics services. These constructs are: extent of use of the third party logistics services; decision making process for choosing contract logistics services provider; and impact of the usage of contract logistics services on the organization. An empirical research was carried out in Singapore to study the impact of these three factors on the future usage of third party logistics services in Singapore. Results based on an analysis of data relating to 126 Singapore‐based firms indicate that most users of these services are satisfied with their providers and believe that this has led to positive developments within the organization.
  • 41. 41 | P a g e CHAPTER: 3 RESEARCH METHODOLOGY
  • 42. 42 | P a g e Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design, sampling procedure & fieldwork done & finally the analysis procedure. The methodology used in the study consistent of sample survey using primary data. The primary data has been collected with the help of questionnaire. The questionnaire has been drafted & presented to Logistics Managers was in offline mode. TITLE OF THE PROBLEM: “CLIENT SURVEY ON LOGISTICS REQUIREMENTS WITH SPECIAL EMPHASIS TO CARE CONTAINER LINES PRIVATE LIMITED” OBJECTIVES OF STUDY:  To find about the type of Business in which the company deals by Market Research Method  To find out the products and commodities they Export and Import  To get the Information about the countries from where they Export/Import  To know the company’s Incoterms Policies  To find out the company’s preferred Shipping Lines and Forwarders  To know their level of satisfaction in terms of Rates and Timely Service SAMPLE SIZE: Sample of 120 Clients of different Export – Import Companies was taken into study and their data were collected. SAMPLING TECHNIQUE: To Study this Project, a Simple Random Sampling technique is used DATA COLLECTION: Collection of data (primary) is done by:  Questionnaire  Face to face interaction
  • 43. 43 | P a g e DATA ANALYSIS: After data collection, I am able to analyze Client views, Logistics Managers perception and opinions related to Logistics Requirements by the Clients in the Export and Import Sector, Care Container Lines Private Limited will come to know the client’s requirements in the Logistics Sector. DATA INTERPRETATION: Interpretation of data is done by using statistical tools like Pie diagrams and using quantitative techniques (by using these techniques) accurate information is obtained. CLASSIFICATION & TABULATION OF DATA: The data thus collected were classified according to the categories. The resultant tables were one dimensional, two-dimensional. STATISTICAL TOOLS USED FOR ANALYSIS: Out of the total respondents, the respondents who responded logically were taken into account while going into statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage, averages, etc. As per questionnaire, I have obtained different responses from different people. According to their responses, I analyzed the findings and drawn certain remarks on the basis of those responses. LIMITATION OF THE STUDY:  The data collected was not from company data sheet but from secondary sources and market.  The Logistics managers were not ready to disclose the real data of their shipments.  The data cannot be taken out as a Company Representative of Care Container Lines Private Limited only but in different situations to handle the clients.  The Company’s contact person sometimes thought as if I have come for taking out auditing information of company due to which the data was not easy to fetch from them.
  • 44. 44 | P a g e CHAPTER: 4 DATA ANALYSIS AND INTERPRETATION
  • 45. 45 | P a g e The number of Companies from which the data have been taken after doing Market Research is 120, based on the data received the analysis has been done as shown below: 1. The type of Shipping Companies which are in Export and Import sector Limited Company Private Limited Proprietorship Analysis: From the data collected, it was found that most of the EXIM companies are Private Limited after this Limited Companies and at the last Proprietorship exists. Limited company Private Company Proprietorship Percentage 20.83 54.1 25 20.83 54.1 25 0 10 20 30 40 50 60 Percentage Percentage
  • 46. 46 | P a g e 2. Type of Shipments LCL FCL AIR ODC OTHERS Analysis: The data collected from the various Industrial Areas, most of EXIM companies deal in different Incoterms Policies like LCL import is at the highest priority after this air shipments, FCL imports and some odd dimension cargo imports are also there but very less in number. LCL FCL AIR ODC OTHERS Percentage 54.1 15 19.16 8.33 3.33 54.1 15 19.16 8.33 3.33 0 10 20 30 40 50 60 Percentage Percentage
  • 47. 47 | P a g e 3. The Shipping Companies which deal in Export/Import and both Importer Exporter Both Analysis: Out of total companies visited 53.3% of companies deal in Imports, 30% of companies deal in Exports and rest of 16.66% deal in both Import and Export. Importer Exporter Both Percentage 53.33 30 16.66 53.33 30 16.66 0 10 20 30 40 50 60 Percentage Percentage
  • 48. 48 | P a g e 4. List of Items which are heavily imported in India Electronic Items Marbles Others Analysis: Mostly Imported Items in India are Electronic Items then after edible products are consumed and Refrigerated products are mostly imported which consist of mainly Chemicals and Medicines , Electronic Items Edible Products Others Percentage 54 28 18 54 28 18 0 10 20 30 40 50 60 Percentage Percentage
  • 49. 49 | P a g e 5. List of heavily Exported Items from India Garments/Apparels Rice Others Analysis: In terms of Exports, Indian Export Houses contribute maximum export of Garments and Apparels to Middle East Countries then after Rice is mostly exported to Middle East Countries. Handicrafts Items contribute a share of 20%. Garments/Apparels Rice others Percentage 52 28 20 52 28 20 0 10 20 30 40 50 60 Percentage Percentage
  • 50. 50 | P a g e 6. Shipments Terms preferred by EXIM companies CIF FOB EX-WORKS FCA DOOR DELIVERY Analysis: From the data collected from the various EXIM companies, it was found that most of the shipments was in FOB i.e. 43.33%, then 25% shipments was CIF Shipments, some companies prefer to use FCA Shipment and least preference is Door Delivery. FOB CIF FCA DOOR DELIVERY Percentage 43.33 25 8.33 5 43.33 25 8.33 5 0 5 10 15 20 25 30 35 40 45 50 Percentage Percentage
  • 51. 51 | P a g e 7. Consideration by EXIM companies for finalizing the shipments Rates Timely Service Company Background Analysis: Most of the EXIM companies consider Rates for finalizing the Shipments, some companies prefer Timely Service while company’s background is least preferred in terms of finalizing the shipments. Rates Timely Service Company Background Percentage 75 16.66 10 75 16.66 10 0 10 20 30 40 50 60 70 80 Percentage Percentage
  • 52. 52 | P a g e 8. Willing to change existing Forwarder or Shipping Line Yes No Analysis: Decision to Change Forwarder or Shipping Line is very difficult for EXIM Companies because Trust over Forwarder or Shipping Line continues to be the part of Business which can’t be broken for sake of money. Yes No Percentage 18.33 81.66 18.33 81.66 0 10 20 30 40 50 60 70 80 90 Percentage Percentage
  • 53. 53 | P a g e 9. Willing to change Customs House Agent (CHA) Yes No Analysis: Customs House Agent helps in clearance of the shipments so most of EXIM Companies do not prefer to change their CHAs, only in some rare cases they might change. Yes No Percentage 10 90 10 90 0 10 20 30 40 50 60 70 80 90 100 Percentage Percentage
  • 54. 54 | P a g e CHAPTER: 5 SUMMARY OF FINDINGS
  • 55. 55 | P a g e Findings: During the course Market Research some of the key findings are as follow:  Most of EXIM Companies deal in Imports  The Electronic Item is heavily imported in India  Most exported Items are Rice and Garments  LCL (Less Container Load) shipment is mostly preferred  The preferred Shipping Line of EXIM companies is MAERSK shipping line  Generally EXIM companies prefer shipment terms in FOB and CIF  For finalizing the shipments EXIM companies look after certain parameters like Rates, Timely service and Company background out of these ‘Rate’ is the first preference by the companies  Fetching information from the Logistics Managers of EXIM companies is very difficult somehow they respond but not openly  During surveying the Industrial Areas in different Locations, the Contact persons of some EXIM companies don’t want to provide data and denied.  Visiting these EXIM companies without appointments led them to think as if I had arrived for the Inspection purpose  Some EXIM companies directly denied to disclose the data and requested to go  Far east and Middle East are mostly preferred Export Location of India
  • 56. 56 | P a g e Suggestions and Recommendations:  From the Survey it is clear that Import of goods is still higher in India so I would like to suggest to manufacturing companies to utilize the resources and try to manufacture finished goods  The Dry Ports of India should be expanded well so that the transportation of products can be done easily without any delay  EXIM companies must have a clear understanding of its customer’s requirements and should develop a strategy on how to use logistics to achieve it because the customer is the most important asset for a company. He drives the entire supply chain including manufacturing, marketing and logistics  Technological factor and Information System are still issues in Logistics Industry due to which widespread of network is still not achievable hence it should be improved  For increasing efficiency and effectiveness, I suggest to combine both Information and Material handling systems for effective Supply chain Management  I would like to recommend Warehouse Management system with an Integrated RFID based technology which will improve entire Inventory handling process by providing an Automated, Systematic and accurate Warehouse management cycle that is error – free, efficient and updated real time
  • 57. 57 | P a g e Conclusion: Indian Logistics Industry is continuously improving its performance in the Global Logistics Industry by improvement of customs, Trade-related infrastructure, Inland transit, Logistics Services, Information systems and Port efficiency help to provide trade goods and services on Time and at Low Cost. World Bank ranks India at 39th in Global Trade Logistics amongst 150 countries.
  • 58. 58 | P a g e Bibliography  “International Journal of Production Economics”, Research and Applications in E- commerce and Third – Party Logistics Management, Vol. 113, issue 1, May 2008, Pages 127-147.  Andrew C. Lyons, “How different is carrier choice for third party logistics companies?” Volume 47, Issue 4, July 2011, Pages 547-570.  Valentina Carbone, “Growth and relational strategies used by the European logistics service providers: Rationale and outcomes” Volume 41, Issue 6, November 2005, Pages 495-510.  “Logistics companies Indian arms liable for tax”, November 12, 2004, M Padmakshan,  “Improving Operations with a Yard Management System”, April 2015, thought Leaders, Nathan Harris, President, Yard view  “Building a Smarter Warehouse”, May 2015, Feature Stories, by Joseph O’ Reilly  “Communication is Key When Optimizing Logistics Networks”, Commentary Viewpoint, by Jeff Vielhaber  “3PLs Put Technology Front and Center”, April 2015, Feature Stories, Merrill Douglas  “Logistics companies looking for funds to build scale & be GST-ready”, November 2014, Megha Mandavia, ET Bureau  “Logistics industry will grow because organized logistics is growing in India”, October 13, 2008, ET Bureau  “Logistics sector: Right time to accumulate stocks”, June 9, 2008, Karan Sehgal, TNN  “Transforming India’s logistics infrastructure”, September 2010, Mc Kinsey by Rajat Gupta, Hemang Mehta and Thomas Netzer
  • 59. 59 | P a g e Annexure Sample Questionnaire SUMMER INTERNSHIP PROGRAMME  Name of Company:-  Exporter or Importer:-  Type of Company: - Ltd. ( ) Pvt. Ltd. ( ) Proprietorship ( ) Any Other ………………….  Contact Person:-  Contact No. (Mob.):- Landline No.:-  Email Id.:-  Address:-  Shipment Type:- LCL ( ) FCL ( ) Air ( ) ODC ( ) Any Other …………………………  Number of shipments in a month :-  The Commodity/Product you import/export :-  Present Forwarder or Shipping Line:-  Preferred Shipping Lines or Airlines:-  Origin of Shipments:-  Destination of Shipments:-  Shipment Terms:- CIF ( ) FOB ( ) Ex-works ( ) FCA ( ) Any Other ……………………..  Is there any query at Present…………………………………………..  Which thing do you consider to finalize a shipment :- Rates ( ) Timely Service( ) Company Background( )  Are you willing to change your Existing forwarder or shipping line? If yes, please specify reason for change. ……………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………… ……………………………………………………………………………………  Are you willing to Change your CHA? Yes ( ) No ( )  Any Suggestion for improvement of service