Table of Contents

1. Executive summary

2. Background

3. Functions of expolanka

4. Structure of Expolanka holding Plc and number of intermediaries involved

5. Map the internal flow of work involved

6. How they manage information

7. Identify and explained whether the Expolanka is customer facing, cross functional and

time based.

8. Identify issue and solution

9. Conclusion

10. References and bibliography

1 | P a g e

1. Executive summary

The story of Expolanka starts in 1978 as the Sri Lankan economy was liberalised and the

flagship Company Expolanka Limited was established. Initially a pioneer exporter of fresh

produce, Expolanka was one of the first winners of the prestigious Presidential Award in this

category. Emerging unobtrusively as a strong and dynamic group of companies, Expolanka

has been gradually but steadily consolidating and sustaining growth. The Group has

diversified into exports, imports and trading, freight forwarding & logistics, manufacturing,

airline representation & operation, travels & tours and information technology over the years.

Today, Expolanka is a market leader in some of these fields with strong international

connections. Customer service excellence, high business ethics and a committed workforce

has brought Expolanka success today. We believe that sustaining these will build up resilient

growth tomorrow. This sound philosophy has enhanced our excellent industry standing and

reputation which continues to mature.

Expolanka is a diversified conglomerate with interests in freight and logistics. Expolanka

Logistics management is a supply chain management component that is used to meet

customer demands through the planning, control and implementation of the effective

movement and storage of related information, goods and services from origin to destination.

Expolanka Logistics management helps companies reduce expenses and enhance customer

service.

In this compressive report demonstrate expolanka logistics management process is begins

with raw material accumulation to the final stage of delivering goods to the destination. By

adhering to customer needs and industry standards, expolanka logistics management

facilitates process strategy, planning and implementation in order to overcome challenges or

issues.

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2. Background of Expolanka holding Plc

Expolanka Holding PLC is a diversified conglomerate with interests in freight and logistics. A

core business sector of the group, Freight & Logistics has over the last 3 decades established

itself as a premier provider of freight forwarding and supply chain management solutions in Sri

Lanka and Overseas. Our commitment to customers and ability to cater to all client needs

positions us as a reliable provider of logistics support.

With a cluster of companies focusing on multi-modal freight and transport solutions and a

global footprint, spanning 4 continents and 18 countries we are one of the top international

Freight & Logistics service providers. Travel and manufacturing and investment and service

sector with a global presence in over 17 countries and 45 cities. The story of Expolanka starts in

1978 as the Sri Lankan economy was liberalized and the flagship company Expolanka limited was

established.

Initially a pioneer exporter of fresh produce, Expolanka was one of the first winners of the prestigious

Presidential Award in this category. Emerging unobtrusively as a strong and dynamic group of

companies, Expolanka has been gradually but steadily consolidating and sustaining growth.

Vision: - “Building a great business with a dare to do spirit”

Expolanka core values: -

We will follow ethical business principle in transacting & managing business.

Caring for stakeholder’s interests

Commitment to excellence

Innovation & entrepreneurship

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3. Functions of Expolanka Holding PLC

Expolanka holding plc is a cluster of companies on multi-modal freight and transport solutions

such as expo freight, SG logistic, pulsar freight (pvt) ltd and pulsar shipping.

Expo freight

Expo Freight (EFL) is a leading freight forwarder in the region and has established itself as a

premier provider of services for the fashion industry. As one of the largest freight forwarders

in the Asian sub-continent and the sub-Saharan region of Africa, providing integrated, supply

chain management of logistics services, our business operations and state-of-the-art facilities

are run by a professional and skilled workforce who are dedicated and experienced, ensuring

that we are able to meet the needs of our global customers.

What they do, how they do

Air Our airfreight service has many specialized

solutions. Whether your cargo needs rapid shipping,

precise temperature regulation, or requires special

handling, we have the right product for you.

Ocean We cover the entire realm of ocean products. In

addition to standard products like FCL and LCL, we

offer Buyers Consolidation, MCC - Multi Country

Consolidation & Transshipment.

Sea Air Services In our continuous effort to bring in efficiencies, we

are looking at ways to exceed the industry standards

and increase the speed of customer service. EFL

Sea-Air enables you to reach any destination in less

than 20 days helping you overcome delays in

production and manage just-in-time inventories.

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Customs Clearance In dealing with customs, EFL regularly undertakes

the responsibility for numerous processes like cargo-

handling, customs documents appraisement, tackling

regulations related to customs procedures for

inbound and outbound shipments, supervision of

GOH and factory stuffing.

Warehousing & Transportation With the growing need of cost effective and reliable

solutions for warehousing, EFL manages and

maintains over 40 warehouses across the globe.

From solutions for retail to specialized cargo

storage, we have established best practices to

manage your inventories and ensure timely

deliveries at all locations

Project Services EFL provides innovative solutions and creative

routing options to deliver your cargo to all regions

of the world, including emerging markets without

the infrastructure necessary to handle the enormous

weight and volume of project cargoes.

Contract Logistics We combine the skills and experience of our

operations managers and supply chain designers, to

design, implement and operate logistics solutions

that improve availability while reducing inventory.

We use world-class processes and systems that give

you more control of your supply chain.

SG logistic

It was in 1990 that foundations were laid for the future SG Logistics, when Expolanka

Freight acquired the Sri Lankan agency for the internationally renowned BAX Global.

Expanding its operations in Sri Lanka, Bax Global became an Expolanka Company in its own

right in 1999, with an exclusive office and workforce.

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What they do, how they do

SGL always moves with new tools and technologies that help our clients enhance

communications with their customers. We call on leading technology, skilled people and a

network that delivers freight in a timely manner. We also offer economies and choice-

delivering solutions to the world's leading, highly specialized fashion distribution centers.

SGL clients benefit from the release of tied-up-capital, a result of simplified administration

and turning fixed overheads into floating costs. Such services include customer’s clearance,

KPI management, pick and labeling and bar coding.

Services offered:

Sea freight

Air freight

Rail Transport

Customs Brokerage

Pulsar Freight (Pvt) Ltd

Pulsar Freight (Pvt) Ltd provides an integrated service to deliver shipments around the globe

powered by a Worldwide Agency Network. Headquartered in Sri Lanka we have our network

offices in Asia, Africa and the Middle East. We are renowned for our logistics specialty

customers with integrated combinations of all elements of the international import and export

freight logistics processes. We continuously research new trends and implement new

concepts to allow importers and exporters to be more competitive in international markets.

Our customized solutions focus on serving each customer based on their choice, need and

perception. We have developed a solid business foundation comprised of people, facilities

and a wide spread clientele

What they do, how they do

Pulsar Freight offers an all-inclusive service that controls the cost, time sensitiveness and

streamlines the entire Inbound and Outbound process. We have global contracts with major

sea / air carriers covering main East/West & North/South Trade Lanes.

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Our comprehensive network of worldwide agents provides an integrated global logistics

services, including customs brokerage, warehousing, distribution and inventory management.

Our plethora of integrated services includes: Air freight, sea freight, sea/air freight,

warehouse & distribution, supply chain management, project cargo, international moving.

Pulsar Shipping

Pulsar Shipping specializes in managing complex transportation for large projects. Our teams

of experts are committed to identifying the exact requirements, surveying potential problems

and researching all options to offer services surpassing the levels of expectations to

extraordinary circumstances with quick and decisive actions. We will customize our solutions

to suit your logistic needs whether you look to transfer men, equipment, storage, licensee or

ship to ship transfers. Our portfolio of wide ranging services extend beyond the borders of

traditional freight and logistics to specialized solutions. With the dual strengths of Pulsar

Marine and Pulsar Shipping combined, we manage remote sites and we specialize in turnkey

projects in infrastructure.

What they do, how they do

Beginning from pre-call procedures, port and weather information, berth availability,

documentation, port services to representation of charterers or owners protective interests,

our services cover all aspects of shipping and logistics management. Given our extensive

local knowledge combined with principal’s requirements, we keep the managers/owners

/operators/ charterers, informed on the vessel/cargo or any changes throughout the port call.

We manage fleets ranging from lower tonnage, semi-submersible ships to heavy lifts ships in

Sri Lanka & Maldives.

Marine and Agency Service

Port offices in the south coast of Sri Lanka for shipping and logistics

Best ship stores and provision supplied under international packing

A working arrangement with Inchcape shipping services for port support

Round-the-clock availability for port and offshore services

Attendance on arrival, departure and as required during vessel call

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Chandelling and ships supply services

Yacht and marine services

Ship Supply Services & Offshore Services

Pulsar Global maritime security

Pulsar port services for team dis/embarkations and maritime equipment storage

facilitation

Pulsar Free port storage services

Pulsar Oil, Gas and energy services

Pulsar Hull cleaning and surveying

Pulsar Ship Chandelling

Dry docking and Afloat repairs in Sri Lanka

Ship supply services: Bunker, LO, Fresh water, medical supplies and Pulsar spare

logistics

Crew changes and medical evacuations.

OPL: Launch services, towage, barge facilitation, STS and equipment hire

4. Structure of Expolanka holding Plc and number of intermediaries involved

Expolanka freight and logistics holding plc has various logistic function and interrelationship

of logistic function with other factions such as operation, sales & marketing, Account &

finance, IT and HR etc. in order to achieve the objective of making available right product at

the right place and at a right time at low cost and also logistic operation to run smoothly

therefore need to involve proper integration among the component of logistic process.

Expolanka freight and logistics has always offered its customer focus products of the highest

quality and has earned their trust and confidence so their functional structure maybe divided

according to products and services they offer. Expolnaka mainly divided into five

departments which are HR, Account & Finance, operation, sales & Marketing and IT each

department link or interrelationships with supply chain and expolanka freight and logistics

functions and also concerned primarily with their respective functions and these functions

come together in the end to perform collectively as a company. Experts of similar caliber are

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grouped together to perform a similar task with which we can understand there is

Specialization in the higher management levels as well as the lower levels.

Expolanka freight and logistics is such an important element within an expolanka holding plc

total business structure. It can be demonstrated using interrelationships of logistic with other

respective functions.

With operation :- production scheduling, warehouse managements, transportation,

delivery operation

With sales & Marketing: - customer service, distribution center location, order

processing.

With Accounting & Finance: - budgeting, equipment financing, distribution cost

control.

With IT: - stock holding, stock control, monitor and control.

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Figure 01

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charirmanNobuaki Kondo

Group of HR & Administration

Mr Asitha Jayatunga

Executives (Miss.Thanusha/

Miss.Dhanuska)

Non- Executive (Mr.Patric)

Head of Marketing corporate

communication & CSR

Mr. paddy weerackars

Manager Marketing (Mr.David jacop)

Assistent Manager (Mr.Rajeewa)

Executives (Mr.Dinuwan/Mr.Nuw

an/Miss.Nadisha)

Operationalfreight and logistic

(Hanif yusoof )

IExpo freight

Director/CEOMr jagath pathirane

Managing directorMr senthilanathna

SG logistics CEO

Ms saif yasoof

pulsar freight (pvt) ltd

Executive (Mr.Niroshima)

Pulsar shipping

Assistant Manager s Custom

(Mr.Susul/Mr.Selva)

Manager Airport (Mr.Dudly)

Head of group ITMR. Asitha jayatunga

Group FinanceMr. Mushta Ahamend

Strategic Finance (Mr.Dimuth)

Junior Executive (Mr.Lairu)

Non-executive (Mr.Premasiri)

Operation Finance (Miss.Nadeera)

5. Map the internal flow of work involved

Internal and external Decisions regarding the level of accountability and control in the freight

and logistics system should weigh the level of effort and who proved approval to the amount

of paperwork required. As soon as a customer places an order with a company, numerous

processes are set in motion to fill it. For example, the completeness of the order must be

checked, and the creditworthiness of the customer must be examined. It must also be

determined whether the ordered product is in stock or must be produced. The following

graphic shows the paperwork and transmission processes associated with order processing at

a freight and logistics company.

Figure 02

Internal flow of work involved process

yes

No

Air

Freight type

ocean

11 | P a g e

Customer order Approve the quotation

Received the arrival notification

Order transmission

Preparation

Received the price from carrier

Received customer confirmation

Order routing

Issue invoice

Send a price list to forwarder

Received the FO

Send back the copy of BOL

Send a pre alert notification to

forward to confirm the arrival date

Deliver order

Releasing letter

Received invoice

C &T

An order forms the basis for the information flow in a logistics system. It has three principal

functions - it creates a flow of information that precedes the goods, accompanies them and

follows them. The tasks of order processing are divided into six phases: order transmission,

preparation, routing, picking, shipment and invoicing.

The transmission of the customer’s order triggers the logistics processes within the company.

On the information-flow level, order processing addresses the handling and monitoring of an

order - from the time it is placed by the customer to the delivery of the shipment documents

and invoice to the customer. The time required for order processing makes up a substantial

amount of the total delivery time.

Order transmission

Order transmission can be done by mail, fax, telephone, e-mail or electronic data exchange

(web-) EDI. To avoid uneven capacity use of a logistics system, the appropriate means of

transmission should be selected in each case.

Preparation

Preparation adjusts the order to meet internal company requirements and integrates the order

into the logistics system’s planning. This includes obtaining missing information, and

checking pricing conditions, delivery conditions and customer creditworthiness as well as the

availability of the material in the warehouse.

Routing

Order preparation is usually followed by order routing, a process that includes order

confirmation and the generation of internal job orders - manually, mechanically or

electronically. For example, a delivery notification containing all related shipping documents

is prepared and tells the storage point to process the shipment. As the integration of electronic

data processing expands, the routing process is becoming increasingly automated, reducing

paperwork associated with the information flow.

Picking

Based on prepared and processed orders, goods are picked in the warehouse. Picking is

organized according to factors such as order size, urgency and orders that have to be

12 | P a g e

delivered simultaneously. In this phase, order processing provides information to the

warehouse and inventories that can be used for tasks such as management of storage and

retrieval equipment or for inventory book keeping.

Shipment

Picking is followed by preparation of shipping documents. When options are available, this

phase includes selecting the optimal means of transport and route for delivery. This

information is closely linked to transportation because both loading and movement of goods

are initiated in this phase.

Invoicing

Invoicing of orders may be done at various points - either as post-invoicing after shipping has

been arranged or as pre-invoicing before or while compilation and shipping are being done.

The strength of post-invoicing is that an order can smoothly proceed to the warehouse. The

strength of pre-invoicing is that as much paperwork as possible can be completed in one

phase.

6. How they manage information

Manage and monitor the flow of goods. This requires an information flow that precedes,

accompanies and follows the flow of goods.

Advance information flow

Once the customer has placed his order, the manufacturer or retailer sends the customer an

order confirmation specifying the scheduled delivery time. All parties involved in the flow of

goods also receive prompt notification about the scheduled delivery. As a result, these parties

have the time they need to plan and schedule, two necessary conditions for optimally

executing the flow of goods in terms of costs and services.

Accompanying information flow

The information flow that accompanies the flow of goods is designed to provide all parties

with operational information needed on site to carry out transport, handling and storage

activities. This information includes proper handling of hazardous goods. In addition,

tracking of the flow of goods through the logistics network is to be supported.

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An RFID (radio frequency identification) tag, for example, can be used in the information

flow accompanying the flow of goods. A special sensor monitors and documents the

temperature of the shipment throughout the transport. The measured data are available at each

monitoring point, a feature that enables the shipper, recipient and controller to continually

check the condition of the products.

Follow-up information flow

The information flow that follows the flow of goods consists of information that is available

only after the flow of goods has been completed. A case in point is an invoice that the

recipient receives a few days after a delivery. However, information can also flow in the

opposite direction of the flow of goods. This involves a status report on the execution of the

order – including information that is reported to the dispatching point about matters such as

the time when the flow of goods passed critical stations in the transport chain .These stations

can include borders in international shipments. This information is also part of the follow-up

information flow.

Warehouse Management Systems

Expolanka use state-of-the-art systems monitor and control all critical warehouse

processes. They also provide support for transport and distribution operations and

communicate with customs and other authorities. Moreover, unlike many of our competitors,

our scale means we deploy a large number of these systems in any given year, you benefit

therefore from this unrivalled experience and expertise.

Warehouse management systems record all events and activities in the receipt, handling and

storage of products and orders in the warehouse or distribution center, including the location

of inventory.

14 | P a g e

7. Identify and explained whether the Expolanka is customer facing, cross functional and time based .

Customer facing

Expolanka serves customers in locations all over the world. A commitment to serve them

with a range of customized services round the clock is supported by excellent service network

and outstanding expertise. They are proud that our professional and efficient service reaches

people no matter where they are, on every continent. The company management would thus

provide the range of clients with a customized logistics solution. Such as

To play the role of partner in the business success of customers.

To always serve customers with passion and dedication.

Customer relationship management

Meetings with Senior Management

Daily interactions at operational level.

Social events

To enhance customer business outcomes through the offer of synergies drawn through

business solutions 5 Responsive interaction

Dedicated customer response/ account management teams

Establishment of the Expo Global Distribution Centre

Customer-specific service adaptations and customizations

Hi-tech Transport Management System

Overseas offices in 18 countries to enhance customer response

International JV’s and Strategic partnerships to offer greater value.

Focus on customer relationships:

The core of the Group’s business is the individual relationships it has fostered over the years

with its customers. In going forward, these relationships will be pivotal to the sustainability

of the business. By embedding excellence in customer management, Expolanka has nurtured

enduring relationships with customers through the provision of customized and innovative

products and services. In a challenging economic environment the Group has continued to

show strong commitment to customers, driven by a long-term, holistic view of customer

relationships.

Focus on innovation for tomorrow’s business:

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The needs of customers are changing rapidly, encouraging the Group to build new

capabilities to serve them better over the long-term. This involves becoming more efficient in

the ability to integrate advances in technology to the service offer as well as the development

of infrastructure and service structure that best deliver the customer need whilst exceeding

customer satisfaction. In addition, the growing certainty that Sri Lanka will be a commercial

hub – and most specifically a logistics hub – has propelled the Group to make a cohesive

change to its service offer in the Freight Management sector, effectively shifting from a

transaction-based operator to one that offers a full spectrum service. Investment into state of

the art infrastructure, technology driven services and the infusion of innovation across the

entire group-wide service product and service offer will enable the Group to fully explore and

garner the effect of innovation on the business’s performance over the medium term.

Investments into the development of digital channels will improve the customer experience

and functionality and assist towards enhancing accessibility to information. Information

Technology is leveraged to optimize value creation across the product and service continuum.

Enhanced functionality, seamless integration of networks and links both internally and with

external partners, enhancement of tools for business intelligence as well as system

implementations to augment the security and compliance functions will remain key in how

the Group addresses needs of tomorrow’s business.

8. Identify issue and solution

The Group’s freight & logistics operations are highly dependent on fashion logistics.

Whilst this has enabled the Group to grow competencies across the region with

specialist intellectual and physical capital/infrastructure, the narrow focus can also be

looked upon as a challenge.

Whilst the apparel sector has grown exponentially in the region, the long term

sustainability of the sector in the Asian region can be debated, with interest of

manufacturers in the African region, as cost structures expand in existing points of

origin such as Sri Lanka, Bangladesh, 110 Expolanka Holdings PLC | Annual Report

2014/15 India, Vietnam and Cambodia.

Multichannel retailing, e-commerce and erratic consumer behavior make for a

challenging environment for fashion companies, pressuring them to render supply

chains more efficient. Fashion is a “fresh” market where goods need to arrive at the

right time, in the right quantity, at the right place and at the right quality. A potential

16 | P a g e

shift in manufacturing destination by large-scale apparel manufacturers, may well

pose challenges to Group’s international operations, requiring market expansion and

entry into new business sectors. From a Sri Lankan operation viewpoint, the nation’s

apparel industry continues to face many challenges, especially in the competitiveness

agenda with countries such as China, India, Vietnam and Bangladesh becoming

fiercely competitive. Notable, the rapid growth of China’s textiles and garment

exports has led to major changes in the world textiles and garment market. China

remains as the world’s largest producer of cotton, cashmere, flax and silk, as well as

the biggest manufacturer and exporter of textiles in the world.

Lack of diversification of export destinations is a key challenge.

Sri Lanka’s textiles and garment exports are concentrated on a few export markets.

USA accounted for 42.9 percent of the total garment exports while EU accounted 45.9

percent in 2013. Canada, accounted for 1.8 percent of the total garment exports. The

balance 9.4 percent comprises more than ninety countries, including Australia, Japan

and Switzerland.

Sri Lanka now lacks preferential treatment from the traditional markets. The

possibility of the GSP+ scheme being reinstated have kindled a flicker of positive

sentiment that will impact the garment industry, a possibility that will catalyse

accelerated growth for Sri Lanka’s freight and logistics industry

Solution

The segment continued to execute its evolving strategy aimed at enlarging the scope

of business through the offer of value added services in the arena of warehousing and

transportation.

The focus was to augment the Warehousing & Transport Management service/product

portfolio to best suit the requirements of key accounts. The strategy has been and will

continue to be, to develop upon and integrate within the value chain of each of the key

accounts.

Enhanced its facilities to support growth through capacity expansion.

Enables the management of multiple vendors and suppliers -, and is one of the most

secure fleets in the region. High security measures enable real time monitoring of

cargo shipments and curtail theft, illegal trade and losses. Monitored by a 24/7 control

room and facilitated by a 24/7 call center, the fleet has enabled customers to re-

engineer the way they do business, deriving competencies to their value chains. The

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TMS has enabled the sector to assure key accounts of security, transparency, brand

protection whilst also enabling tighter controls and measures on cost and efficiencies.

The Expo Global Distribution Centre (EGDC), a value-added bonded warehousing

facility under the free-port regulations at the Katunayake Export Processing Zone was

commissioned for operations during the year under review. The center – which has an

area of 240,000 square feet - is designed to provide value added services with key

focus levels to international apparel retailers operating in Sri Lanka and the region.

9. Conclusion

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Expolanka holding plc is a diversified conglomerate with interests in freight and logistics.

Initially a pioneer exporter of fresh produce, Expolanka was one of the first winners of the

prestigious Presidential Award in this category. Emerging unobtrusively as a strong and

dynamic group of companies, Expolanka has been gradually but steadily consolidating and

sustaining growth. The Group has diversified into exports, imports and trading, freight

forwarding & logistics, manufacturing, airline representation & operation, travels & tours

and information technology over the years. Today, Expolanka is a market leader in some of

these fields with strong international connections.

This compressive report will demonstrates what is the process of planning, implementing,

and controlling the efficient, effective flow and storage of goods, services, and related

information from point of origin to point of consumption for the purpose of conforming to

customer requirement and also how expolanka freight and logistics structure link with

organization structure and identify the performance and process of logistic function.

Further identify whether the expolanka is customer facing, cross functional and time based

and also key issue or challenges facing from internal and external environment. And

provide solution to overcome issue. In addition Lecture notes and assigned text book were

referred to give a broader understanding of the theories and definitions that have been

discussed in this report.

References and bibliography

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