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  1. 1. ACKNOWLEDGEMENT We have immense pleasure in successful completion of this work titled:“ LOGISTICS AND EXPORT PROCEDURES”. The special environment at STESSKN SSBM, Pune that always supports educational activities, facilitated my work on thisproject. We acknowledge the support, the encouragement, extended for this study by ourDirector Dr. Rajashree Shinde and Co-ordinator Prof. Jyotsana Jadhav. We greatly appreciate the motivation and understanding extended for theproject work, by Mr. Santosh Lunkad, who responded promptly and enthusiastically tomy requests for frank comments, despite their congested schedules. We are indebted toall of them, who did their best to bring improvements through their suggestions. We are also thankful to my college’ Library Staff & Administrative StaffSTES SKNSSBM College, who directly or indirectly have been helpful in some or the otherway. We thank our Dearest Parents, who encouraged me to extend my reach. Withtheir hep and support, We have been able to complete this work.
  2. 2. Introduction Selection of Topic:In partial of our M.B.A course, we are supposed to prepare a projectreport for our subject “Project Report” in order to show our skills andalso to prove our abilities. Hence, we took the opportunity to increaseour knowledge concerning to the Foreign Trade Field through thistopic. For us it was a great opportunity and therefore we have selectedthe title of my project i.e. “LOGISTICS and EXPORT PROCEDURES”with reference to Prof. Joystana Jadhav.
  3. 3. Objectives of Project Since we have a keen interest in knowing new things especiallyrelated to the area of Foreign Trade. We selected a topic related to thearea of this field. As we want to enhance our career from the Foreign Tradestream, the research made by us to complete this project will prove tobe very helpful. The main objective of our project on the topic “Logistics andExport Procedures” is to study the import and export procedures underlogistics and advantages of it with the opening up of Globalizationwhich indeed resulted as the main cause for the emergence ofFOREIGN EXHCANGE EARNINGS IN India. So, we would like to clearly mention that, my project purelyinvolves the basic concepts of The Logistics and Export trade.
  4. 4. LOGISTICSLogistics is the art of managing the supply chain and the science of managingand controlling the flow of goods, information and other sources like energy andpeople between the point of origin to the point of consumption in order to meetcustomers’ requirements. It involves integration of information, transportation,inventory, warehousing, material handling, and packaging.Export Logistics involve international movement of cargo. This business hasundergone a great change over the years. Not only have volumes gone upmanifold, the approach to handling those volumes has also seen a paradigm shift.In short integrated logistics is concerned with getting products and services wherethey are needed and required.The operating responsibility of logistics is the geographical repositioning of rawmaterials, work in process and finished inventories where required and achieving atarget level of customers at the lowest cost possible.
  5. 5. SUPPLY CHAINA supply chain is a network of facilities and distribution options that performs thefunctions of procurements of materials, transportation of these materials intointermediaries and finished product and the distribution of these finished products to theultimate consumer.A supply chain consists of three or more companies directly linked to each other a basicsupply chain consists of a company and immediate supplier and an immediate customer.Supply chain involves integration of business processes and linkages with suppliers andcustomers in the value chain.Logistical competency can be achieved by integrating and coordinating its 5 mainconstituents.Hence logistics is concerned with the following functions: 1. INFORMATION Information plays an important role in every logistical system. Information quality is of great importance as it reflects on positioning inventory and movement of goods ultimately results into efficiency of total operations. Forecasting and Order management are two areas of logistical work that depend on information. 2. NETWORK DESING It is the determination of the number and location of all types of facilities required to perform logistics work based on geographical location of facility. Specific tasks related to processing customer orders, maintaining inventory and material
  6. 6. handling are all performed within the network design framework. In global logistics, issues related to network design become more complex in nature.3. TRANSPORTATION Based on facilities like network design and information system, transportation is the operational area of logistics that geographically positions inventory. Transportation is having fundamental importance and visible cost. It can be accomplished by – Having own/Private fleet of vehicles; Having contracts with transporters/logistics service providers – contract carriage; Appointing number of carriers to execute different orders in relevant manner – common carriers.4. INVENTORY The inventory requirements of a firm depend on the network structure and the desired level of customer service. Common objective is to accomplish efficiency in customer service by maintaining inventory at minimum level with consistency in lower total cost. Errors in design of logistical system and inferior management results into excess inventories.5. WAREHOUSING, MATERIAL HANDLING AND PACKING Earlier a warehouse is typically viewed as a place to store inventory. However, in many logistical system designs, the role of the warehouse is more properly viewed as switching facility as contrasted to a storage facility. A major problem in logistical operations during the past several decades has been the level of labor productivity. Productivity is ratio of physical output to physical input. Material handling process deals with number of labor hours required to perform creates a vulnerability to any reduction in the output rate as per labor hours. The
  7. 7. application of labor to product selection and handling represents one of thelogistics highest personnel cot components.Packaging has a significant impact on the cost and productivity of the logisticalsystem. Costs are associated with packaging raw materials, labor and disposalfunctions.Therefore logistical service is a balance of service priority and cost.
  8. 8. Three Parameters to MeasureLogistical Competency1. Availability: Having inventory/stocks to consistently meet the customer product needs.2. Operational performance: It deals with the lapse time from the order receipt till/to the delivery of the product. It can also be viewed in terms of its flexibility in accommodating unusual and unexpected customer request.3. Service flexibility: It means quality attributes of logistics. The firm established with expressed of objective of providing integrated logistical services to shipper customers. The vision of these firms is to offer a service sufficiently comprehensive to provide all or a significant part of shipper’s total logistical requirements. This activity is called as “Third party logistics (3PL) and the firm who undertakes the said activity is called as “third party logistics service provider”.
  9. 9. EXPORT PROCEDURES INTRODUCTION TO EXPORT Export trade is governed by legal controls and therefore, every function of it is carried out under definite procedures. The various procedures that are followed in the export of goods facilitate execution of export in a systematic manner. Export market is not merely an extension of domestic market. Apart from the basic principles of business in domestic as well as foreign market, selling abroad requires specialised knowledge regarding certain matters such as detailed market surveys, shipping, marine insurance, customs and foreign exchange formalities etc.Preliminaries 1. IEC Number: Every person (whether an individual, former co.) importing or exporting goods require an Importer-Exporter Code number (unless specifically exempted by the DGFT). The IEC number is normally allotted by the Regional Licensing Authority (RLA) this code number is required to be incorporated in the various export documents submitted to the authorities for purposes of export. 2. Obtaining Permanent Account Number (PAN): Export income is subject to a number of exemptions and deductions under different section of Income Tax Act. For claiming such exemptions and deductions, the exporter should register his organization with the income tax authorities and obtain the Permanent Account Number.
  10. 10. 3. Membership-Cum-Registration: Membership of certain bodies will help the exporters in a number of ways. There are specified Export Promotion Councils for various products groups. Exporters are advised to become members of local Chambers of Commerce, Productivity Council, or any other trade promotion organization recognized by the Ministry of Commerce or Industry. (a) Registration with EPC/FIEO: For any benefit or concession under the EXIM policy, an exporter is required to register him with the appropriate authority and obtain a Registration-cum-membership certificate (RCMC). (b) Registration with Sales Tax Authorities: For getting exemption from sales tax on the goods, the exporter should be registered with the Sales Tax authorities of the concerned state. (c) Registration with ECGC: The exporter should also register with the Export Credit and Guarantee Corporation of India (ECGC) in order to secure overseas payments against political and commercial risks.4. Inquiry and Offer: An enquiry is a request from a prospective importer about description of goods, their standard or grade, size, weight or quantity, terms of payments, etc. on getting an getting an enquiry, the exporter must process it immediately by making an offer in the form of proforma invoice.5. Confirmation of Order: Once the negotiations are completed and the terms and the terms and conditions are finalized, the exporter sends three copies of proforma invoice to the importer for the confirmation of order. The importer signs these copies and sends back two copies to exporter.
  11. 11. 6. Finance: If the exporter requires pre-shipment financial assistance, he should take the necessary steps to obtain it.7. Production or Procurement of Goods: On securing the pre-shipment finance from the bank, the exporter either arranges for the production of the required goods or procures them from the domestic market as per the specifications of the importer.8. Packing and Marking: The goods should be properly packed and marked with necessary details such as port of shipment and destination, country of origin, gross and net weight, etc.9. Obtaining Mate’s Receipt and Bill of Lading: The goods are loaded on board the ship for which the Mate or the Captain of the ship issues Mate’s receipt to the Port Superintendent. The Port Superintendent, on receipt of port dues, hands over the Mate’s receipt to the C & F Agent.10. Submission of Documents by C & F Agent to the Exporter: On the completion of the shipping procedure, the C & F agent submits the following documents to the exporter:-  A copy of invoice duly attested by the Customs.  Drawback copy of the shipping bill.  Export promotion copy of the shipping bill.  A full set of negotiable and non-negotiable copies of bill of lading.  The original L/C, export order or contract.  Duplicate copy of the ARE-I form.
  12. 12. DYNAMIC LOGISTICSCOMPANY PROFILEDynamic Logistics is an end-to-end logistics provider dedicated to providing strategicbusiness results via innovative technologies, expert financial analysis, and time-provendistribution policy practices. Dynamic Logistics PVT. Ltd. Founded in 1983 is theflagship company of the Talera Group. Starting modestly as a simple warehousingcompany, today it is recognised as the pioneering giant that ushered the role of ThirdParty Logistics (3PL) Services in the country. Dynamic Logistics provides a vast array ofservices to various brand established clients in multi-locations.By providing the expertise in Inventory and Distribution management which extend toover 600 destinations in India and abroad, it has catapulted as the industry in 3PLServices. It is the first ISO-9002 compliant logistics provider in India and has upgradedthe standard to the current ISO 9001-2000. The company’s mission is to provide world-class, cost effective and highly efficient end-to-end global supply chain solutions so as toenable its clients to significantly improve their performance capabilities wheredramatically are cutting their logistics costs. The company corporate office and operationbase is in Pune, India, a city which is well connected by road, rail & air; is ideally locatednear all major industrial hubs which seek the specialised services, and is also in proximityto the port city Mumbai which facilitates the EXIM Trade. The 3PL Services in Pune arecurrently operated from three centres and the company is also represented for veryesteemed and established clients in Chennai, Indoor and Aurangabad. Besides theLogistics Services, the company also operates in Pune the Inland Container Depot(ICD) or the Dry-Port facility with custom bonded warehouses and the provision forclearing ship and air cargo which is a boon to hinterland based importers and exporters.
  13. 13. Vision and Mission of Dynamic LogisticsVISION:To be the preferred business partner to organizations striving for dramaticimprovement in performance.MISSION:To enable our clients to significantly improve their performance capability and tobe proactive by managing change ; providing them with world –class, costeffective and highly efficient , technology enabled logistics services.SERVICES:From in-depth analysis of their business plan to site selection and operations, DynamicLogistics is uniquely positioned to help you optimize your distribution network. Its majorservices are  Supply Chain Management (SCM)  Warehousing  Container Freight Station  Fleet services  Technology solutions.Dynamic logistics uses state-of-the-art network modelling tools to determine how welltheir distribution network is serving their customers. From inbound to outbound, weanalyse their facilities, inventory, and service, employing all modes of transportation.
  14. 14. (A) SUPPLY CHAIN MANEGEMENT Dynamic Logistics is one source for comprehensive logistics services. Our established operations around the world offer supply chain, transportation and inventory management, warehousing operations, reverse logistics and more... all custom-tailored to the individual needs of our customers. Our in-house consultants and operations experts provide valuable experience and expertise in a wide variety of, including computers, automotive and e-commerce. INBOUND LOGISTICS  Just in time Supply i.e. JIT  Milk Run collection  Consolidation Centres  Excise and Octroi support  Reverse logistics  Cluster formation OUTBOUND LOGISTICS  Pre Delivery Inspection  Accessory fitting  Unit packingExport Packing is the ambassador of their brand. Right type of packing as per thecountry of the consumption is vital. Dynamic understands this need and has developedmechanism to provide packing that would meet stringent quality standards set byglobal standards. Packing for domestic markets has to undergo various obstacles onthe way. On one side packing has to withstand in transit upheavals, on the other side it
  15. 15. has to take care of pilferage and their elimination. Packing need to take care of different characteristic of the product being packed. Labelling requirement varies from country to country and market to market. It also needs to take into account requirement as per the local laws. At the corporate level this activity is beyond core-competence of the company profile. Dynamic has experience to undertake labelling if products and free companies to concentrate on their core functions. With vast experience of last eight years in business dynamic has labelled products amounting to over 2 billion rupees. PROCUREMENT  Purchase function  Purchase Order Management  Inventory Level Maintenance  Schedule Generation  ReportingOrder desk is a place where all types of dealer orders through fax, email and telephonesare received, the order is single source of communicate to dealers on the state of theirorders. Order desk provides information on the status of order fill, items moved intoback order, expected date of arrival of such items from suppliers. In case the dealers areprovided schedule to place an order this information is again given by order desk todealers.WAREHOUSINGGrowing beyond one million sq. ft. of warehousing space with large realty holdings inPune, Chennai and other cities of India. Dynamic Logistics is geared to take on dauntinglogistic challenges of the new millennium, their service more than 400 locations in Indiaand Nepal.Warehouse building  Warehouse Location Selection  Material Handling
  16. 16. INVENTORY CONTROL  Minimum Inventory Levels  LIFO FIFO  Inventory CountsInventory counts cycle counts can be undertaken both manual as well as throughcomputer control. The idea behind cycle count is to eliminate the year end farce ofundertaking full inventory count. If required they can undertake computerised inventorycount where data will be uploaded from a hand-held terminal. End of Period CountingAudits and in hand with the cycle count we can undertake process audit in yourorganisation. The audits will look at streamlining processes, reducing waste and cut downon paper work. Minimum Inventory Levels LIFO FIFO.VALUE ADDED SERVICESDynamic Logistics expertise extends far beyond merely providing warehousing andtransportation services. A good majority of their work for clients involves value-addedservices such as Labelling/Bar coding put away also refers as binning in the warehouseparlance. It is the starting line of warehousing activity. Picking/Packing If picking is thevalue-generating department then packing materialises these values. Picking can bedivided into assignments greatly enhances pick time and allows faster inventoryturnaround time. Packing needs to consider the type of part that needs to be packed.Dynamic logistics offers a full range of customised transportation solutions and services.They can serve as an extension of their business and provide a single-sourcetransportation solution to meet your specific needs. They adopt non asset based transportmanagement model which optimally utilises vast source of small transport operators.Generating synergy from both inward and outward transport requirements of their variousclients, they optimize the transportation costs and ensure peak performance.PlanningRoute planning with the help of road map, load factor and frequency route will beplanned to bring or deliver material to customer cluster information vendor or customerlocations are being analyzed to cluster are made for effective control and costoptimization schedule generation movement.
  17. 17. Milk route collection according to pick-up schedule material from certain radius will belifted from the vendors and be delivered to assembly line of clients as JIT concept. Milkroute distribution material will be distributed from specific point to different deliverywithin certain radius as per given schedule.Optimization  Route optimization  Freight optimization  Planning for Minimum Handling TECHNOLOGY SOLUTIONS A dynamic e-com solution is the IT division of Dynamic Logistics. They are involved in the building of Application Software, Web-sites and Web-Portals. They have developed major software’s like CFS, WMS and TMS, which are instrumental in the efficient and lucrative execution of operations throughout Dynamic Logistics. CAREERS OUR PEOPLE, OUR ASSETS 1. They select and retain the right people who are team players and realise that the greatest opportunity is to manage their customers. 2. Their quality policy speaks of constant innovation and updating, which comes from the inner desire to excel by learning and sharing with the continuous stress on results. 3. Their techno-savvy personnel from varied professional background constantly bench-mark their overall output through self appraisal. 4. Their individual employees are their advantage, and their combined team is their biggest asset, where each player focuses on total customer service and satisfaction.
  18. 18. S.W.O.T. ANALYSIS OF COMPANYSTRENGTH: 1. There is strong support from the government to Inland Container Depot and Dynamic Logistics is ICD. 2. Providing 3PL services are cost-effective and of good quality.WEAKNESS: 1. An unfavourable rule for private companies and Dynamic is Private ICD.OPPORTUNITIES: 1. Huge potential in the domestic as well as foreign market. 2. Increasing popularity of this company.THREAT: 1. Competitive rivalry in markets, competitors is also sourcing components from the same Dynamic suppliers at low cost. 2. There are many competitors are there to Dynamic and which are wholly owned by Government and this is Private Company.
  19. 19. OBSERVATIONS1. Dynamic Logistics is a Service provider company which provides 3PL Services, and it is also Dry port.2. Overall the hospitality and service I received was worth appreciating.3. The employees were very co-operative and share a friendly relationship with the top level and low level as well.4. Company is having good infrastructure and the services they are offering and providing are good quality.5. Dynamic offers 3PL, SCM, Warehousing, Fleet services and technology solutions
  20. 20. CONCLUSIONAfter taking into consideration and going through the procedure of the company forEXIM we arrived at following conclusion.  Export logistics have assumed a different and more important role in recent years.  Warehousing is a crucial component of export logistics.  This visit has given me firsthand experience of physical and psychological aspects involved.  It helped me a lot to bridge the gap between theory application and practical application of it.  Information is the lifeline of any business, particularly so in the case of foreign trade.  There is huge opportunity in this field, because of the ultimate demand from the foreign countries, thus it helps in generating employment opportunities.
  21. 21. BIBLIOGRAPHYNAME OF THE BOOK AUTHOR NAME1. International Logistics Pierre David2. Export and Import management Aseem KumarWebsites1. en.wikipedia.org2.