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1. MODULE UNIT - 02
1 ORGANIZATIONAL FRAMEWORK
UNIT OVERVIEW
This unit is focuses on a major segment of domain skills i.e. understanding of
organizational structure. The unit provides detailed explanation about Industry specific
terminology, Classification of logistics services, Organizational chart of a logistics
company, Functions of logistics department, Types of documents, Types of goods,
Relevant ministries and government departments, Performing duties as consignment
tracking executive.

2. UNIT OBJECTIVE
At the end of this lesson, students should be able to demonstrate appropriate
knowledge, and show an understanding of the following:
 Industry specific terminology  Types of documents
 Classification of logistics services  Types of goods
 Organizational chart of a logistics company  Relevant ministries and
 Functions of logistics department government departments
 Performing your duties
SESSION PLAN
2.1 Industry specific terminology
2.2 Classification of logistics services
2.3 Organizational chart of a logistics company
2.4 Functions of logistics department
2.5 Types of documents
2.6 Types of goods
2.7 Relevant ministries and government departments
2.8 Performing your duties

3. UNIT DESIGN
S.NO UNIT METHOD TOOLS/ EQUIPMENTS DURATION
1 ORGANIZATIONAL
FRAMEWORK
Explain all about Industry
specific terminology,
Classification of logistics
services, Organizational chart
of a logistics company,
Functions of logistics
department, Types of
documents, Types of goods,
Relevant ministries and
government departments,
Performing duties as
consignment tracking
executive.
Computer,
Projector,
white board,
participants
manual,
markers, flip
charts
Hours

4. 2.1 INDUSTRY SPECIFIC TERMINOLOGY
Warehouse
A warehouse is a large building where goods are stored, and
where they may be catalogued, shipped, or received,
depending upon the type. Warehouses have existed for
several centuries, and the word itself is not hard to understand. “Wares” were the things
possessed by a seller and to house these in a central location meant you were storing
your wares. Normally, though, modern warehouses may store not just the possessions
of a single seller or manufacturer, but a host of different products. The principal
operation of the place is receiving, getting in new products, and shipping out products
already stored.
Consignment
Consignment is the act of consigning, which in turn is the act
of giving over to another person or agent's charge, custody
or care any material or goods, but retaining legal ownership
until the material or goods are sold. This may be done for

5. the purpose of shipping the goods, transferring the goods from one destination to
another place.
Inbound & Outbound Consignments
Inbound logistics refers to the transport, storage and delivery
of goods coming into a business. Outbound logistics refers to
the same for goods going out of a business. Inbound and
outbound logistics combine within the field of supply-chain management, as managers
seek to maximize the reliability and efficiency of distribution networks while minimizing
transport and storage costs.
Transportation
Transportation is one of our most basic human needs. Without it,
we would die pretty quickly. Transportation is the act of moving
something from one place to another. Every company, regardless of
what it produces or distributes, requires the movement of goods
from one point to another and, therefore, is involved in

6. Transportation essentially concerns the spatial dimension of thetransportation.
business firm.
NOTE: FOR OTHER INDUSTRY SPECIFIC TERMINOLOGIES AND DEFINITIONS; REFER TO
THE GLOSSARY AT THE END OF THIS COURSE.
2. CLASSIFICATION OF LOGISTICS SERVICES
Direct Services: These involve physical movement or storage of goods and services.
Based on the types of activities performed, they can be further categorized into:
Storage and warehousing which primarily comprises of following activities:
 Stock management
 Packaging/labeling/marking
 Loading/unloading
 Sorting/splitting/consolidation
 Transportation which primarily comprises of following modes/activities:
 Road transportation
 Rail transportation
 Water transportation

7.  Air transportation
 Pipeline transportation
 Multimodal transportation
 Transportation scheduling
 Load planning
Distribution which primarily comprises of following activities:
 Network design and collaboration
 Demand forecasting
 Order management
 Distribution and shipments planning
 Inventory management
 Spare parts management
 Production planning and control
 Testing and Quality control

8. Freight forwarding and Freight consolidation which primarily comprises of following
activities:
 Contracting with other LSPs.
 Customs and excise facilitation and brokerage
 Document preparation
 Arranging Insurance
 Goods shipment
 Consolidation, groupage and special services
Auxiliary services which primarily comprises of following activities:
 Cargo handling services (Container/other cargo handling services)
 Pick-up and delivery
 Transport agency services
 Leasing and rental services
 Pre-delivery inspection
 Outfitting jobs
 Spare-parts management
 Salvage and scrap disposal

9.  Auditing
 Contract manufacturing and assembly operations
 Reverse Logistics which primarily comprises of following activities: Backhauls
 Packaging material returns
 Product returns
 Product recalls
 End-of-life (EoL) returns

10. 2.3 ORGANIZATIONAL CHART OF A LOGISTICS COMPANY

11. 2.4 FUNCTIONS OF LOGISTICS DEPARTMENT
Logistics is considered to be the
process involving
managing and
complete
planning,
controlling the flow of goods
and services, information, real-
time data and human resources
from the point of origin to the
point of destination. There is
hardly any manufacturing or marketing activity that can be achieved without the
support of an effective logistical department. The logistics process consists of the
process of integration of several aspects such as material handling, warehousing,
information, transportation, packaging and inventory.
The primary duty of an effective logistics system is to ensure geographical repositioning
of unfinished goods, and it is also concerned with the finished inventories of the
organization being at the required place at the lowest possible cost. The logistics
department is entrusted with the responsibilities of ensuring that the entire process of

12. logistics is maintained and developed in accordance with the goals of the business at an
economical cost.
The various tasks performed by the department may be summarized as follows:
1. Ensuring all the requirements of the customers are met on time in an efficient
and safe manner.
2. To coordinate with third party logistics (3PLs).
3. To ensure that there is a safe and timely dispatch of goods.
4. To draft plans, policies and procedures for successful implementation of logistics
system.
5. To ensure that the business goals of the organization are in synchronization with
logistics system.
6. To create and maintain customer support.
7. To maintain coordination with vendors, service providers and transport carriers.
8. To ensure timely supply and payment of goods and reduce inventories.
9. To ensure that no fraud is committed.

13. in completing regulatory formalities for domestic
2.5 TYPES OF DOCUMENTS
The following are guidelines
shipments within India.
General Requirements: Any commercial shipment picked up for transit on Ground/Air
network should have:
 Four copies of invoice (1 original + 3 copy).
 The CST & TIN/LST numbers of the consignor and consignee mandatory
 Shipments consigned to individuals who do not have CST & TIN/LST numbers, a
declaration from the consignee that the goods are not for sale and for personal
consumption is a must.
Documents required for international shipment
Export procedure describes the documents required for exporting from India. Special
documents may be required depending on the type of product or destination. Certain
export products may require a quality control inspection certificate from the Export
Inspection Agency. Some food and pharmaceutical product may require a health or
sanitary certificate for export.

14. Shipping Bill/ Bill of Export is the main document required by the Customs Authority for
allowing shipment. Usually the Shipping Bill is of four types and the major distinction lies
with regard to the goods being subject to certain conditions which are mentioned
below:
 Export duty/ cess
 Free of duty/ cess
 Entitlement of duty drawback
 Entitlement of credit of duty under DEPB Scheme
 Re-export of imported goods
The following are the export documents required for the processing of the Shipping Bill:
 GR forms (in duplicate) for shipment to all the countries.
 4 copies of the packing list mentioning the contents, quantity, gross and net weight
of each package.
 4 copies of invoices which contains all relevant particulars like number of packages,
quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc.
 Contract, L/ C, Purchase Order of the overseas buyer.
 AR4 (both original and duplicate) and invoice.
 Inspection/ Examination Certificate.

15. The formats presented for the Shipping Bill are as given below
 White Shipping Bill in triplicate for export of duty free of goods.
 Green Shipping Bill in quadruplicate for the export of goods which are under claim
for duty drawback.
 Yellow Shipping Bill in triplicate for the export of dutiable goods.
 Blue Shipping Bill in 7 copies for exports under the DEPB scheme
Note: - For the goods which are cleared by Land Customs, Bill of Export (also of 4 types -
white, green, yellow & pink) is required instead of Shipping Bill.
Documents required for post parcel customs clearance
In case of Post Parcel, no Shipping Bill is required. The relevant documents are
mentioned below:
 Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and
international apex body coordinating activities of national postal administration. It is
known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by
the sender.

16.  Despatch Note, also known as CP2. It is filled by the sender to specify the action to be
taken by the postal department at the destination in case the address is non-
traceable or the parcel is refused to be accepted.
 Prescriptions regarding the minimum and maximum sizes of the parcel with its
maximum weight : Minimum size: Total surface area not less than 140 mm X 90 mm.
Maximum size: Lengthwise not over 1.05 m. Measurement of any other side of
circumference 0.9 m./ 2.00 m.
Maximum weight: 10 kg usually, 20 kg for some destinations.
 Commercial invoice - Issued by the seller for the full realisable amount of goods as per
trade term.
 Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania,
Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar
etc. It is prepared in the prescribed format and is signed/ certified by the counsel of
the importing country located in the country of export.
 Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is
prepared on a special form being presented by the Customs authorities of the
importing country. It facilitates entry of goods in the importing country at preferential
tariff rate.

17.  Legalised/Visaed Invoice - This shows the seller's genuineness before the appropriate
consulate/ chamber of commerce/ embassy. It do not have any prescribed form.
 Certified Invoice - It is required when the exporter needs to certify on the invoice that
the goods are of a particular origin or manufactured/ packed at a particular place and
in accordance with specific contract. Sight Draft and Usance Draft are available for
this. Sight Draft is required when the exporter expects immediate payment and
Usance Draft is required for credit delivery.
 Packing List - It shows the details of goods contained in each parcel/ shipment.
 Certificate of Inspection - It shows that goods have been inspected before shipment.
 Black List Certificate - It is required for countries which have strained political relation.
It certifies that the ship or the aircraft carrying the goods has not touched those
country(s).
 Weight Note - Required to confirm the packets or bales or other form are of a
stipulated weight.
 Manufacturer's/ Supplier's Quality/ Inspection Certificate.
 Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few
countries to show that the goods shipped have actually been manufactured and are
available.
 Certificate of Chemical Analysis - It is required to ensure the quality and grade of
certain items such as metallic ores, pigments, etc.
 Certificate of Shipment - It signifies that a certain lot of goods have been shipped.

18.  Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine
products, hides, livestock etc.
 Certificate of Conditioning - It is issued by the competent office to certify compliance
of humidity factor, dry weight, etc.
 Antiquity Measurement - Issued by Archaeological Survey of India in case of antiques.
 Transhipment Bill - It is used for goods imported into a customs port/ airport intended
for transhipment.
 Shipping Order - Issued by the Shipping (Conference) Line which intimates the
exporter about the reservation of space of shipment of cargo through the specific
vessel from a specified port and on a specified date.
 Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate
and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc.
 Shut Out Advice - It is a statement of packages which are shut out by a ship and is
prepared by the concerned shed and is sent to the exporter.
 Short Shipment Form - It is an application to the customs authorities at port which
advises short shipment of goods and required for claiming the return.
 Shipping Advice - It is prepared in aligned document to be used to inform the
overseas customer about the shipment of goods.

19. 2.6 TYPES OF GOODS
Practically all products you use in your day-to-day life have passed a long way. And every
product requires its own method of transport, or packaging. Five types of cargo can be
distinguished: container cargo, liquid bulk, dry bulk, breakbulk and ro-ro.
Container cargo
Toys, televisions, DVDs, clothing, meat and
computers; containers are the best way to
transport these and many similar products. By
efficiently loading the goods, they can be
transported simultaneously in large quantities.
One twenty foot container can hold the
shopping of 300 trolleys! Or 3,000 game
computers! Or 1,000,000 pencils! And the
goods are well protected against the elements
by the container's metal walls. The fixed size of
the containers also has a major advantage. The standard sizes mean containers fit on
sea-going vessels, lorries, inland barges and train wagons.

20. Liquid bulk
Crude oil, petrol, fuel oil, vegetable oils and even
wine; all liquid products which are often transported
on big tankers or through a pipeline to the next
destination. For the refineries, crude oil is the raw
material they need to produce new goods, such as
fuel oil, petrol and kerosene. These products also find
their way as liquid bulk to the next destination.
Dry bulk
Dry bulk refers to grain, coal, iron ore, cement, sugar,
salt and sand. They are not packaged separately, but
transported in large quantities in the hold of a ship,
wagon or lorry. Blast furnaces use iron ore and coal to
produce steel.

21. Breakbulk
Paper, wood, bags of cocoa, rolls of steel, parts of wind
turbines; these are all products that can be transported
in a container or simply put on a vessel. The name says it,
it breaks easily. To be able to lift general cargo, it is often
packaged on pallets, in crates or racks. A crane or forklift
truck can easily load or discharge the goods.
Ro-ro
Ro-ro refers to 'roll on / roll off'. This name explains how
the cargo is discharged and loaded. This concerns cargo
that can be driven which is only done by especially
trained drivers. Ro-ro is used for cars, busses, trucks,
agricultural vehicles and cranes. To transport as many of
these vehicles in one go, enormous ro-ro vessels have
been built.

22. 2.7 RELEVANT MINISTRIES AND GOVERNMENT DEPARTMENTS
The union government of India consists of ministries which are responsible for
formulating and implementing policies related to various sectors of the country and its
economy. The logistics infrastructure of the country, businesses providing logistics
services, and export promotion of these services involve a number of central and state
government ministries and departments as regulators, policy-makers, resource
allocators, executors and monitors. The important ones that can be readily cited are
Ministry of commerce and industry: department of commerce, ministry of road
transport and highways, ministry of shipping, ministry of railways, etc. Other important
bodies are the Planning Commission and SEPC (Services Export Promotion Council) set
up by ministry of commerce and industry as an apex body to facilitate service exporters
of India.
The logistics infrastructure can be divided into shipping infrastructure, railways
infrastructure, multi-modal logistics infrastructure, road transportation, Special
Economic Zones (SEZs), Inland Container Depots (ICDs), etc. The promotion and
development of shipping related infrastructure like ports, national waterways, and
inland water transport comes under the purview of the ministry of shipping. It
encourages and regulates the development of public sector ports, private sector ports
and projects under the Public-Private Partnership (PPP) schemes. The shipping wing

23. headed by the Directorate General of Shipping (DGS) is the nodal authority for
administration of commercial and non-commercial shipping services, shipping policy,
navigation, maritime laws and mercantile training. Inland Waterways Authority of India
(IWAI) is primarily responsible for development, maintenance and regulation of national
waterways. Railways infrastructure in terms of rail lines, terminals, freight carriage
capacity, containerization, etc. is looked after by Indian Railways through various
divisions and projects. National Highways Authority of India (NHAI) under the ministry of
road transport and highways is responsible for the development, maintenance and
management of national highways.
Roles and responsibilities at various levels
The different ministries and associated departments are responsible for the
development of logistics in the respective sectors as described briefly in 3.3.1.There
exists a very complex framework of roles and responsibilities in various departments. Let
us cite a few examples to understand the scenario. The Regional Transport Offices (RTO),
under the ministry of road transport and highways are responsible for issuing and
controlling licenses and registration permits for owning and operating trucks and other
commercial vehicles for freight transportation. They issue driver’s licenses for operating
commercial vehicles.

24. Ministry through its regional agencies is responsible for formulating and implementing
the policies related to road safety and traffic management for Indian roads. In shipping
industry the DGS (Directorate General of Shipping) along with various MMDs (Mercantile
Marine Departments) is responsible for issuing licenses and permits for commissioning
and operation of cargo ships in Indian waters. They are responsible for certifying the
seaworthiness of vessels and ensuring that they comply with national and international
environmental protection regulations. The responsibility of certification of trained
manpower for operating ships lies with the MMDs. The roles and responsibilities of
various statutory government bodies in India is mainly aimed at ensuring safe and
efficient operation of various logistics related organizations in the country. As of now the
development of capabilities and export potential has not been given much attention by
these authorities. Indian railways have allowed private operators to bid for and operate
container trains in some corridors, although the scope is still very limited.
Current Regulatory framework and policies of the Government in this area
Logistics services can be classed under general services. The Foreign Trade Policy 2012
prescribes certain policies related to the promotion of export of services in general,
some of which are applicable to logistics services as well. Service Providers along with
other units working in a SEZ are exempted from service tax. So, any logistics services
provider catering to SEZ falls under this category.

25. 2.8 PERFORMING YOUR DUTIES AS PACKER
People you need to closely work with
Warehouse manager: Warehouse managers are responsible for organising the safe and
efficient receipt, storage and despatch of warehoused goods. Warehouse managers are
also responsible for workplace health and safety standards and for the security of the
building and stock. In a large operation, they manage teams of workers through the use
of team leaders and supervisors and deal with personnel issues such as the recruitment,
training and discipline of staff.
Transport manager: Transportation manager ensures that transportation of
consignment into or out of an organization are handled quickly, safely, and within
budget constraints. Transport Managers arrange maintenance services for company
vehicles, such as forklifts and pallet jacks. And they confirm that all vehicles meet
government safety regulations. Ongoing tasks commonly involve preparing reports for
transportation demands for the company over time.

26. Consignment booking assistant: Consignment Booking Assistant is also known as
Booking Assistant, Booking Clerk or Order Booker. Individuals in this role are responsible
for receiving customer order details, checking market prices, availability and making
bookings with transport companies to pick up the consignment. They are also
responsible for going to the client location, checking the goods, preparing the Lorry
Receipt (LR), updating the information in the computer system and billing.
What is a work schedule?
A schedule, often called a rota or roster, is a list of employees, and associated
information e.g. location, working times, responsibilities for a given time period e.g.
days, week, month or sports season.

27. Problem escalation matrix
There are always issues with supply chain management and things are much easier if
you know what your next option is for moving things along. The problem escalation
matrix offers a process for resolving various types of problems and delays. This matrix
covers the various types of issues and can be expanded to include as many as you need.
Some of them are:
 operational (scheduling, instructions, information, materials, performance issues
and service cancellations),
 logistical (product delivery, missing products, order cancellations and verifications)
 technical (error messages, botched instructions, technical questions)

28. Sample escalation matrix of Logistics Company