global logistics project report

8/12/2019 Global Logistics Project Report

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[CHAPTER 1]Introduction1. INTRODUCTION

As part of curriculum of the Graduate Degree in Foreign Trade course at

Sinhagad College of Science & Commerce, students are required to do a

project in any reputed organization For this reason, ! did my project

research in "intas Freight & "ogistics ""C, #um$ai The project %or

%as titled '(ffecti)eness of "ogistics #anagement* in #um$ai and to

suggest %ays and means to impro)e the management strategic decisions

1.1 OBJECTIVE OF THE STUDY

The o$jecti)es of the +roject are

To no% a$out "ogistics !ndustries

To compare the effecti)eness of logistics management at "intas

Freight and "ogistics and to $enchmar the organization %ith

respect to the industry


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To ha)e a thorough understanding of ho% logistics and freight

industries %or

To no% %hether the customers are satisfied %ith the e-isting

range of ser)ice pattern

1.2 METHODOLOGY OF THE STUDY

The data used for the study had primary and secondary character to it

The primary data %as collected through questionnaire method The

secondary data %ere composed through the reference of $oos, %e$sites,

and inter)ie%s %ith )arious e-ecuti)es in different organizations of the

sample The procured data %as analyzed $y a simple percentage method

and the results are supported %ith graphs and charts

1.3 SCOPE OF THE STUDY:

The scope of the study is confined to Du$ai +orts .Al /amriya +ort0 and

near$y organizations of "intas Freight & "ogistics ""C, %hich are into

the concerned industry The study is done only on industries dealing %ith

Freight and "ogistics in Du$ai area

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a.Intro!"t#on to Lo$#%t#"% Mana$&'&nt

"ogistics management is that part of the supply chain %hich plans,

implements and controls the efficient, effecti)e for%ard and re)erse flo%

and storage of goods, ser)ices and information $et%een the point of

origin and the point of consumption in order to meet customers1

requirements A professional %oring in the field of logistics

management is called a logistician

"ogistics as a $usiness concept e)ol)ed only in the 2345s This %as

mainly due to the increasing comple-ity of supplying one1s $usiness

%ith materials and shipping out products in an increasingly glo$alized

supply chain, calling for e-perts in the field %ho are called Supply Chain

"ogisticians This can $e defined as ha)ing the right item in the right

quantity at the right time at the right place for the right price and it is the

science of process ha)ing its presence in all sectors of the industry The

goal of logistics %or is to manage the fruition of project life cycles,

supply chains and resultant efficiencies

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(. Or#$#n an D&)#n#t#on o) Lo$#%t#"%:

The term 6logistics6 originates from the ancient Gree 6789:;6

.6logos6


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!n years gone $y, the traditional %arehousing and logistics facility %as

located $y railroad tracs, a %ater port, andBor free%ays, usually in the

least desira$le parts of cities or large to%ns This stereotype then faded

as gigantic, stateoftheart facilities $egan to sprout in more rural areas

on the outsirts of transportation and population hu$s The orld started

$eginning to see such facilities sho%ing up in e)en less 6traditional6

areas #odern %arehouses no% are $eing located in carefully manicured

industrial pars that are sprouting as fast as the corn and %heat once did

in these open spacesoften in outofthe%ay places hy the emphasis

on such locations for logistics companiesE

#uch of it is due to the great flu- that the logistics industry has $een

undergoing in the first three years of the 2st century #ost of these

changes are $eing dri)en $y a gro%ing trend in the manufacturing and

retail sectors to form partnerships %ith companies to %hich they can

outsource noncore logistics competencies+" pro)iders

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!n turn, +" pro)iders are continually looing to pro)ide inno)ati)e

supply chain solutions to customers $y focusing on )alueadded

capa$ilities, differentiating themsel)es from the competition They focus

on ey o$jecti)es, such as implementing information technologies,

instituting effecti)e management processes, integrating ser)ices and

technologies glo$ally, and deli)ering comprehensi)e solutions that

create )alue for +" users and their supply chains This need to partner

%ith customers and $ecome more integrated into their supply chain

processes has created the ancillary need to locate close to these

customers

That isn1t to say the need for easy access to transportation hu$s and

different modes of transportation %on1t continue to $e important >ut the

a$o)e shift in $usiness strategy, along %ith the ad)ances in technology

and enhanced communication, has opened the door for logistics facilities

to operate effortlessly in a myriad of locations

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+rofit %arnings, share price pressures, mergers, reorganizations,

relocations, disposals, painful layoffs and great geopolitical uncertainties

can s%eep a%ay e)en the most comprehensi)e logistics strategies H and

that@s despite outstanding management o)er many years These are

e-ceptionally difficult times and it has ne)er $een more important to

connect logistics and freight planning to e-ecuti)e $oard thining than

no% !t@s easy to lose sight of the $igger picture in the rush to cut

infrastructure cost and conser)e cash /opefully organization succeed in

protecting the $usiness, satisfying shareholders and analysts, $ut %hat

a$out capacity and fle-i$ility, morale and momentumE

To $e a logistics %inner in the coming years organizations need to use

the do%nturn to reshape for gro%th, propelled $y an unshaea$le

con)iction that the mission is still important, that more prosperous times

lie ahead, and that in some %ay the company infrastructure is helping to

$uild a $etter ind of %orld

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"ogistics is ine)ita$le in the future and essentially the management

policy also has a significant role in the future of %orld Generally the

study is $eing featured %ith all aspects of management in "ogistics and

Freight areas ."ogistics include Transportation, arehousing, Iet%or

Design, Crossdocing, and Jalue Adding0

. G&n&ra I'*ort / E0*ort Mar&t

a.#aret Analysis

KA( sea freight e-ports rose in )olume and )alue during recent years

KA(@s largest e-porting state, Du$ai, led these increases %ith su$stantial

increases in )olume and )alue of e-ports All states sho%ed an increase

in e-port )alue and many states ha)ing an increase in e-port )olume

A$udha$i, =asalhaimah, and other states sho%ed small decreases in

e-port )olume compared to Du$ai

Total freight import )alues increased 2LM in 55LB5N China remains

largest import maret (-ports to other largest sea freight e-port marets

sho%ed su$stantial gro%th, namely Africa .4OM0, !ndia .OPM0 and

other Asian #arets .OPM0 )er the last L years, import )olumes and

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)alue to China and !ndia ha)e consistently gro%n, %hile imports from

Qapan increased follo%ing three consecuti)e years of decline #ost of

this increase can $e attri$uted to a large increase in sea freight imports

from China, %hich rose OL,L3,5 tones or 2O4M ther su$stantial

increases in import )olume %ere seen from Tai%an .NM0, !ndia

.M0, !taly .2P3M0, Ie% Realand .2P3M0 and #e-ico .N5PM0,

%hile note%orthy decreases in e-port )olume %ere seen to Ietherlands

.2P5M0 and KSA .4M0

55LB5N sa% a mi-ed result for Chinese and other Asian sea freight

e-ports !ncreasing import )alue %as led $y >ase #etals .principally

Copper Cathodes and "ead0, despite recording a small decrease in

import )olume in the group #ineral +roducts .mainly "iquid Gas and

!ron products0 and +repared Foodstuffs .mainly paced F#CG

products0 %ere the other major commodity groups sho%ing an increase

in )alue, also $aced $y increasing commodity prices for these groups

+repared Foodstuffs ha)e sho%n a continual increase in import )alue

o)er the last L years The 55LB5N increase in #ineral +roducts and >ase

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#etal +roducts imports follo%s years of import )alue decline in these

products .>ase metals used mainly for Automo$iles, >atteries etc0

The most su$stantial decrease in e-port )olume %as seen in

Jegeta$le +roducts .grains and other plant products0, %ith an associated

drop in e-port )alue Transport (quipment also sa% a large drop in

e-port )alue and )olume A decrease in e-port )alue continues

consecuti)e years of decreases in e-port )alue in these groups The most

constant e-port is for dates to neigh$oring nations Dates are of )ery

less demand in estern regions of the glo$e

$0 +erisha$le !tems Animal +roducts #eat, Dairy & Seafood

KA( import products in the Animal +roducts category include meat,

seafood and dairy Chicen and lam$ meat imports are KA(@s largest sea

freight imports in this category >oth Chicen .225M0 and "am$

.LM0 sa% increases in sea freight import )alue during 55LB5N, %ith

smaller increases in total )olume, reflecting the increased price for these

commodities during the period "am$ imports $y air also rose in

55LB5N, $ut imports $y air account for only NM of the total chicen

and lam$ e-ports )er the last 4 years, sea freight lam$ imports ha)e

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$een quite consistent and at a high le)el The dramatic gro%th in chicen

imports during 55LB5N comes on top of steady gro%th since 555B52

The other single largest Animal product commodity is Tuna, %ith

55LB5N sea freight imports totaling L4,2P,33O and 4,2NO tonnes This

is %ell $elo% the 55B5 pea of 52,5LL,25, %ith decreases in

e-port )alue seen during the pre)ious years !n addition to the sea freight

imports, Tuna is also imported $y airfreight Similar decreases %ere seen

in $oth sea and airfreight imports

Frozen +ra%ns, increased in )olume and )alue .N5M0 during 55LB5N

Grated Cheese .including Cheddar0 remains an important dairy import

$y sea %ith yearly e-ports fluctuating $et%een L and P3 million o)er

the last L years Cheese curd e-ports increased su$stantially during

55LB5N !mports are mainly from Denmar, S%itzerland

Grain heat, =ice is KA(@s single largest )olume import commodity

!mport )olume and )alue dropped across most major commodities in the

grain category Actually had an increase in import )olume for =ice and

heat for the year 55L5N

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[CHAPTER 2]Industry Profle

2. Lo$#%t#"% In!%tr-

2.1 LOGISTICS U4E 5 M#& Ea%t

"ogistics is the management of the flo% of goods, information and other

resources, including energy and people, $et%een the point of origin and

the point of consumption in order to meet the requirements of

consumers "ogistics in)ol)e the integration of information,

transportation, in)entory, %arehousing, materialhandling and

pacaging !n terms of )alue, glo$al logistics industry has $een

estimated to $e more than KSD 4 $illion and mae up significant part

of the GD+ %ith regard to !ndia The #iddle (ast is currently !ndia1s top

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n the positi)e point of )ie%, ne% opportunities are opening up for the

sector Trade )olumes $oth o)erseas and inland are gro%ing )ery fast

The pace of gro%th in the specialized sectors lie "iquid Iatural Gas

."IG0, Containers, Goods, (lectronic (quipments etc are

comparati)ely much higher !ntegrated logistics and multimode

transportation are opening up ne% $usiness for logisticsB shipping

companies

2.2 Lo$#%t#"% Mana$&'&nt an Lo$#%t#"% Mana$&'&nt So)t+ar&

"ogistics management is that part of the supply chain %hich plans,

implements and controls the efficient, effecti)e for%ard and re)erse flo%

and storage of goods, ser)ices and related information $et%een the point

of origin and the point of consumption in order to meet customers1

requirements A professional %oring in the field of logistics

management is called a logistician

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Soft%are is used for automating logistics acti)ities %hich helps the

supply chain industry in automating the %or flo% as %ell as

management of the system Jery fe% generalized soft%are are only

a)aila$le in the ne% maret in the said topology This is $ecause there is

no common rule to generalize the system as %ell as %or flo% e)en

though the practice is more or less the same #ost of the commercial

companies do use one or the other custom solution There are )arious

soft%are that are $eing used %ithin the departments of logistics mainly

in Con)entional Departments and for Container Trucing

a. B!%#n&%% Lo$#%t#"%

"ogistics as a $usiness concept e)ol)ed only in the 2345s This %as

mainly due to the increasing comple-ity of supplying one1s $usiness

%ith materials and shipping out products in an increasingly glo$alized

supply chain, calling for e-perts in the field %ho are called Supply Chain

"ogisticians This can $e defined as ha)ing the right item in the right

quantity at the right time at the right place for the right price and it is the

science of process ha)ing its presence in all sectors of the industry The

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goal of logistics %or is to manage the fruition of project life cycles,

supply chains and resultant efficiencies

!n $usiness, logistics may ha)e either internal focus .in$ound logistics0,

or e-ternal focus .out$ound logistics0 co)ering the flo% and storage of

materials from point of origin to point of consumption The main

functions of a qualified logistician include in)entory management,

purchasing, transportation, %arehousing, consultation and the organizing

and planning of these acti)ities "ogisticians com$ine the professional

no%ledge of each of these functions so that there is a coordination of

resources in an organization There are t%o fundamentally different

forms of logistics ne optimizes a steady flo% of material through a

net%or of transport lins and storage nodes The other coordinates a

sequence of resources to carry out some project

(. Pro!"t#on Lo$#%t#"%

The term is used for descri$ing logistic processes %ithin an industry The

purpose of production logistics is to ensure that each machine and

%orstation is $eing fed %ith the right product in the right quantity and

quality at the right point in time

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The issue is not the transportation itself, $ut to streamline and control the

flo% through the )alue adding processes and eliminate non)alue adding

ones +roduction logistics can $e applied in e-isting as %ell as ne%

plants #anufacturing in an e-isting plant is a constantly changing

process #achines are e-changed and ne% ones added, %hich gi)es the

opportunity to impro)e the production logistics system accordingly

+roduction logistics pro)ides the means to achie)e customer response

and capital efficiency +roduction logistics is getting more and more

important %ith the decreasing $atch sizes ()en a single customer

demand can $e fulfilled in an efficient %ay Trac and tracing, %hich is

an essential part of production logistics due to product safety and

product relia$ility issues is also gaining importance especially in the

automoti)e and the medical industry

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[CHAPTER 3]Company Profle

hen it comes to supply chain management, the ans%er is

Leadership, Innovation and Quality Solutions

hat "intas Freight and "ogistics does

Freight #o)ement

CargoB Freight #anagement Solutions

Full Trucload & Solution +ro)iders

Contract +acaging & ther Ser)ices

arehouse perations .utsourced0 and

#anagement

"ogistics +"

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3. L#nta% Fr$,t 6 Lo$#%t#"% LLC O7&ra V#&+:

3.1 V#%#on an M#%%#on

L#nta% Fr$,t an Lo$#%t#"%: B&%t P&o*&. B&%t Pro"&%%&%. B&%t

Va!&.

a. V#%#on

To $ecome a leading freight, transportation, clearing and logistics

company in the #iddle (ast To $e the recognized industry leader,

through total commitment to customer ser)ice, $y maintaining our

uncompromising integrity, in the support and de)elopment of our

+eople, Communications and Systems in sustained gro%th and

profita$ility

(. M#%%#on

To set the standard for e-cellence in glo$al logistics through total

commitment to quality in people and customer ser)ice, %ith superior

financial results To sol)e relia$le transportation and logistics ser)ices to

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the needs of the $usiness community =elia$le ser)ices means ontime

deli)ery, undamaged goods, and correct documentation in case of

de)iations To perform continuous $usiness impro)ement in order to

meet and e-ceed customer e-pectation, To create sustaina$le $usiness

gro%th in order to enhance the prosperity of employee and $enefit

shareholders

Decisions can impact the success of the company as much as the

performance of the supply chain Io matter %hat industry or region of

the %orld other organization do $usiness in, the supply chain is an

integral part to the success as same as the products, the ser)ices, and the

people !n 55, "intas Freight and "ogistics Ser)ices, ""C %as formed

to $uild on the glo$al distri$ution e-perience to help other companies

lo%er distri$ution costs %hile impro)ing customer ser)ice and $rand

loyalty

"intas Freight and "ogistics is a technology$ased company pro)iding

customized solutions that transform distri$ution to a source of

competiti)e ad)antage #ain moti)e is to pro)ide integrated solutions

from managing transportation, in)entory, and distri$ution centers to

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sophisticated forecasting, information management, and net%or

consulting ser)ices Today, "intas "ogistics ser)es more than 4 client

companies, glo$ally, in an array of different maret sectors

The organization mission is to pro)ide $est )alue, integrated freight and

logistics solutions to clients in timesensiti)e, ser)icecritical $usinesses

rganization tries to le)erage and continuously impro)e the capa$ilities

ur clients trust us and depend on our >est +eople and >est +rocesses to

help them succeed

3.2 L#nta% Fr$,t an Lo$#%t#"% S&r7#"&

Today, "intas employ many professionals in their $ranch offices and in

fields .+orts0, dedicated to helping freight, transportation, clearing,

for%arding and logistics needs oung, energetic, professional, and

passionate their hum$le $eginnings, satisfying customer needs has $een

the dri)ing force $ehind e)ery "intas Freight & "ogistics employee

"intas pro)ide these ser)ices around glo$ally and main focus to KA(and !ndian marets

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"intas Freight and "ogistics, focus on main areas they are

a Customer ser)ice to a higher le)el

$ +artnering to seeing the right ans%ers

c Finding solutions that optimize cost and ser)ice

d And al%ays asing, ho% can %e ser)e you $etterE

e Analyzing e)ery opportunity, e)ery challenge to pro)ide a custom

solution that %ors $est for customer

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3.3 Cont#n!o!% I'*ro7&'&nt #n t,& Or$an#8at#on

"intas "ogistics employees and other contracting people and other

e-ceptional people are the cornerstone of organizations ser)ice, they are

e-perts in their fields (nergetic, al%ays looing for %ays to dri)e cost

out of the supply chain and all the %hile %oring to impro)e the ser)ice

!nitially from the $eginning, organization has hired only the $est and

$rightest The most committed ()ery mem$er of the team is empo%ered

to create and implement clientcentered solutions Deploying the

management team regionally means decisionmaing and is ept local,

onthescene The team structure means good ideas can come from

any%here %ithin the company

a. C!%to'&r% n&& %o!t#on% no+. L#nta% Fr$,t an Lo$#%t#"% $&t

t,&' on t,at 'o'&nt.

ith %orldclass technology as the $ac$one of the solutions and

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ser)ice !ntegrating systems and pro)iding realtime information

to help reduce cost $y mo)ing the products of customers to maret

as efficiently as possi$le rganizations 'Can Do* culture is rooted

in customer ser)ice, fle-i$ility and inno)ation !t@s $een that %ay

since the "intas Freight and "ogistics organization %as launched

o)er 4 years ago rganization has got a rich tradition of

redefining ser)ice for the supply chain management, freight

management and logistics industry This commitment to quality

customer ser)ice led "intas Freight and "ogistics to $ecome the

thirdparty logistics pro)ider to $e certified $y KA( as $est system

standards Today, the Uuality #anagement System not only ser)es

as the foundation of the ongoing Continuous !mpro)ement in day

today procedures, it also ser)es as the cornerstone of the "intas

Freight and "ogistics The process dri)en approach to pro$lem

sol)ing helps the organization e-ceed customers1 e-pectations, as

the organization helps tacle ser)ice and cost issues %ithin their

supply chains

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3.9 Or$an#8at#on F!n"t#on%:

a. Fr$,t For+ar#n$

Departments typically arrange cargo mo)ements to an international

destination This department has the e-pertise that allo%s them to

prepare and process the documentation and perform related acti)ities

pertaining to international shipments A freight for%arder organizes the

safe efficient mo)ement of goods on $ehalf of an e-porter, importer or

another company or person, sometimes including dealing %ith pacing

and storage Taing into account the type of goods and the customer@s

deli)ery requirements, freight for%arder array, the $est means of

transport, using the ser)ices of shipping lines, airlines or road and rail

freight .!ndian #arets0 operators

Functions

i =esearching and planning the most appropriate route for a

shipment Taing account of the perisha$le or hazardous nature of

the goods, cost transit time and security

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ii Arranging appropriate pacing Taing account of climate, climate,

terrain, %eight, nature of goods and cost, deli)ery or %arehousing

of goods at their final destination

iii$taining, checing and preparing documentation to meet

customs, e-cise and insurance requirements, pacing

specifications and compliance %ith o)erseas countries regulations

and fiscal regimes

i)ffering consolidation ser)ices $y air, sea, and road

o (nsuring cost effecti)e and secure solutions to small shippers

%ith sufficient cargo to utilize their o%n dedicated units

o

"iaising %ith third parties to mo)e goods $y road, air or sea in

accordance %ith customer requirements

o Arranging insurance and assisting the client in the e)ent of a

claim

o Arranging payment of freight and other charges or collection of

payment on $ehalf of the client

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o Transmitting data $y internet and satellite systems, ena$ling real

time tracing and tracing of goods

o Arranging charters for large )olumes out of gauge or project

mo)ements $y air and sea

o Acting as $roer in customs negotiations %orld%ide to guide the

freight efficiently through comple- procedures

o Arranging courier and specialist hand carry ser)ices

o #aintaining )isi$ility and control through all phases of the

journey, including the production of management reports and

statistical and unit cost analysis

o Acting as consultant in customs

o #aintaining current no%ledge of rele)ant legislation, political

situations and other factors that could affect the mo)ement of

freight

o At more senior le)el, the role may also in)ol)e managing staff

and o)erseeing acti)ities %ithin a department or specializing in

a particular area, such as sea freight or air freight

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(. Lo$#%t#"% F#&: B! O*&rat#on%

The main function in this department includes identifying the customers

and collecting information a$out the amount of material to $e e-ported,

the product, place of e-ports The department also undertaes cargo

$ooing, pro)ides information on the rates, the schedules, the arri)al,

departure time, name of the ship, transshipment details and does the

follo% up

Functions

i !dentifying the customers $y the mareting person of this

department

ii Con)incing the shipper of the ser)ices that company pro)ides to $e

$etter than the other shipping ser)ice pro)iders

iii(nquire a$out the place or commonly referred to as the destination

port to %hich the shipper %ould lie to e-port the cargo

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i)(nquire a$out the type and quantity of the cargo, that he %ould lie

to e-port

) The type of container and the num$er of containers that the shipper

%ould lie to tae

)iAnalyzing the rate the shipper e-pects from his cargo mo)ement

)ii !nforming the shipper the rate and negotiating %ith him

)iii Scheduling the arri)al and department time of the )essel

i-"isting out the transshipment details and do the follo% up

". C&ar#n$ an For+ar#n$ C 6 F

The main function of C&F department is to undertae the customs

formalities on $ehalf of the e-porters or importers The documentation

process and clearing acti)ities are done $y this department

Functions

i +reparation of )arious inds of $ill of entry and shipping $ill

ii Arri)al and clearance of )essels

iii Determination of )alue for assessment

i) Con)ersion of currency

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) Iature and description of documents to $e filed %ith inds of $ills

of entry & shipping $ill

)i +rocedures for assessment and payment of duties

)ii(-amination of merchandize at the customs stations

)iii +rohi$itions on imports and e-ports items

i- =eimportation and conditions for free reentry

- Chec offences under the act

-i =efund procedures, appeals and re)ision petitions

. N&t+or D&%#$n

A "ogistics Iet%or Design initiati)e is a strategic analysis of entire

supply chain

Some of the strategic questions are

To ensure enough facilities to meet future capacity requirementsE

hich facilities should $e closed andBor consolidatedE

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!s there an opportunity to mae changes to the net%or to reduce

logistics costsE

De)elop the Current Financial #odel

>efore maing sensi$le decisions on %hat changes to mae the net%or,

a ?$ase case@ financial model needs to $e de)eloped !t should include

the costs of all logistical acti)ities such as arehouse costs,

Transportation costs, !n)entory costs and rder +rocessing costs

Soft%are Selection

Due to the comple-ity of this analysis, a net%or optimization soft%are

pacage is in order The soft%are selectionphase may $e completed

concurrently %ith the financial model$uilding phase a$o)e ne person

on the project team should $e responsi$le for sourcing the right soft%are

to meet the projects modeling needs

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Data Gathering & Jalidation

This is one of the ey dri)ers to a successful project !t is imperati)e that

the data from your current data %arehouse .transactional data0 $e

accurate For e-ample, %hen an item is recei)ed into the %arehouse, are

the correct product characteristics captured accuratelyE Some

characteristics of interest %ould $e cu$e, %eight, carton dimension,

hazardous materials, etc ne of the acti)ities further into the project

%ill $e to create a summary of the product flo%s This is accomplished

$y creating family groupings of products !f the data is not ?clean@ the

flo%s %ill $e misrepresented and this %ill affect the accuracy of the

model

4na-8& C!rr&nt Stat& o) O*&rat#on%:

A throughput and capacity analysis should $e completed for the e-isting

operations This %ill help determine if there is additional capacity in the

e-isting facilities or if there is e-cess capacity a)aila$le This %ill help

de)elop the ?scenarios@ later on The impact to the other logistical

operations may then $e identified

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&. ar&,o!%#n$

A %arehouse is a commercial$uildingfor storageof goods arehouses

are commonly used $y manufacturers, importers, e-porters, %holesalers,

transport$usinesses, customs, etc They are usually large plain $uildings

in industrial areas of cities and to%ns They come equipped %ith loading

docsto load and unload trucsV or sometimes are loaded directly from

rail%ays, airports, or seaports They also often ha)e cranesand forlifts

for mo)ing goods, %hich are usually placed on !S standard pallets

loaded intopallet racs

#ost %arehouses are completely automated, %ith no %orers %oring

inside The pallets and product are mo)ed %ith a system of automated

con)eyorsand automated storage and retrie)al machinescoordinated $y

programma$le logic controllers and computers running logistics

automation soft%are These systems are often installed in refrigerated

%arehouses %here temperatures are ept )ery cold to eep the product

from spoiling, and also %here land is e-pensi)e, as automated storage

33
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systems can use )ertical space efficiently These high$ay storage areas

are often more than 25 meters high, %ith some o)er 5 meters high

The direction and tracing of materials in the %arehouse is coordinated

$y the #S, or arehouse #anagement System, a data$ase dri)en

computer program The #S is used $y logisticspersonnel to impro)e

the efficiency of the %arehouse $y directing puta%ays and to maintain

accurate in)entory$y recording %arehouse transactions

#odern %arehouses are also used at large $y e-portersBmanufacturers as

a point of de)eloping retail outlets in a particular region or country This

concept reduces the end cost of the product to the consumer and thus

enhance the production sale ratio arehousing is an age old concept

%hich can $e used as sharp tool $y original manufacturers to reach out

directly to consumers lea)ing aside or $ypassing importers or any other

middle agencies or person

The arehouse are to $e %ell guarded %ith safety pro)isions to counter

pilferage, fire, floods & other calamities The arehouses are in

34
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con)enient locations & %ell connected $y roads to facilitate on time

deli)ery to customers

). Cro%%o"#n$ ; Conta#n&r#8at#on

Crossdocing is a practice of logistics of unloading materials from an

incoming semi trailer truc and loading these materials to out$ound

trailers or rail cars, %ith little or no storage in $et%een This may $e

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done to change type of con)eyance, or to sort materials intended for

different destinations or to com$ine material from different origin

An increasing popular method of shipment is containerization A

container is a large $o- made of dura$le material such as steel,

aluminum, ply%ood and reinforced plastics A container )aries in size

material and construction !ts dimension is typically O foot high and O

foot %ide lengths usually )arying A container can accommodate most

cargo $ut is most suita$le to pacages of standard size and shape

Containers can tae case of most of P main pacing pro$lems >ecause

of container construction, a product does not ha)e to ha)e hea)y

pacaging, it gi)es protection against

#. >reaage

##. #oisture

###.Temperature controlled

#7.+ilferage and Theft

There are mainly types of containers

7. Dry Containers

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7#.Special +urpose Containers

Types B Size

5 Foot Dry

P5 Foot Dry

P4 Foot Dry

7##. pen top containers

7###. Flat rac for o)er sized cargo

#0.P5 foot refrigerated containersB reefers

0. /igh cu$e containers .P5 foot, P4 foot & =eefers0

3.< Or$an#8at#on Str!"t!r&

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rganization is headed $y rganization /ead, and all other employees

report to him Firm comprises of 2 employees for internal %ors and

other team for acti)ities including freight for%arding, logistics, clearing

and for%arding rganization acts as a +" for other firms on $ehalf of

carryB for%ard, logistics arehouse acti)ities are $eing outsourced

$ased on the demand situations, as goods are $eing stoced in different

%arehouses, and is $ased on the customer requirements

3.= B!%#n&%% Dr#7&r%

The follo%ing are the $usiness dri)ers in logistical operation

a0 Cost Dri)ers The a)erage materials mo)ed $y manufacturers to

e-port maret is lo%, $ut %here as to import maret is high in

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figure The high technology portion reaches to L5M to NM of

imports Ium$er of la$our hours is a factor, tonnage of importsV

size of in)entory, num$er of suppliers, num$er of $atches, num$er

of employees etc are all major concern in cost "intas Freight and

"ogistics eep a major fa)oura$le concern on the a$o)e, as from

the $asic gettogether of employees during the off pea hours in

%or ! %as a$le to figure out, employees %ere not happy %ith

their present situations in office and in the %oring hours The

situation has a major impact in operational sta$ility The situation

leads to lengtheningBof deli)ery $ills and other major in)oice

forms As to manager@s %ords, it is deciphered that situations are

impro)ing day $y day >y using Acti)ity >ased Costing .A>C0

method of costing the organization can identify unprofita$le

%arehouse practices, other cost measures in logistics !f "intas

Freight and "ogistics implement cost $ased on A>C, the firm can

impro)e and eliminate unprofita$le situations, impro)e and

implement ne% facilities %ith much $roader focus on future To

any organization cost reduction is the ultimate method to get a

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much %ider profit As %ith the help of questionnaires and through

formal inter)ie%s %ith officials not many organizations ha)e this

generally All organizations %ill $e implementing the cost method

%ithin the near future

[CHAPTER 4]Reve! o" #terature

9. R&7#&+ o) L#t&rat!r&

a. D&'an C,a#n Mana$&'&nt

Knderstanding demand requires a comprehensi)e no%ledge of your

customers, ou should no% %hat products B ser)ices are demanded $y

your customersV ho% do they mae their purchases, ho% often they order

and %hat constraints they face on the purchasing process Jery fe%

companies ha)e mastered this concept "intas Freight and "ogistics %as

a$le to no% all the a$o)e concepts through considera$le focus into

customer needs and grie)ances

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(. 4",#&7#n$ Co'*&t#t#7&n&%% #n Lo$#%t#"%> Fr$,t> S!**- C,a#n

=educed lead time, in)entories, lo%er operating costs, product

a)aila$ility and customer satisfaction are the $enefits %hich gro% out of

effecti)e logistics and supply chain management The decisions usually

carried on $y "intas Freight and "ogistics .+"0, co)er $oth the long

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term and short term Strategic decisions deal %ith the corporate policies,

and loo at o)erall design and logistic chain structure Tactical,

perational decisions are those dealing %ith e)eryday acti)ities and

pro$lems of the organization Change is the ine)ita$le factor for each

and e)ery day situation %ithin and outside the organization The

decisions must tae into account the strategic decisions already in place

Therefore organization must structure the logistics ideas through long

term analysis and at the same time focus on e)ery time situations

Furthermore, maret demands, customer needs, transport considerations

and pricing constraints are the factors in order to structure the logistics,

freight "intas Freight and "ogistics realized the fact and are prepared to

face any une-pected situations lie inflationB deflation in the economy,

price factors, climatic pro$lems etc

". O*&rat#ona F&&t Ro!t#n$ 6 Loa#n$

The organization deri)es routes in transportation are mainly longhaul

.ptimization0 For short haul deli)eries, there are ready solutions that

are tightly integrated to %arehouse management systems .outsourced

facility0, to efficiently route fleets of )ehicles and )essels and plan

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picing and loading Stipulated time %indo%s for picups and

deli)eries and )ehicular %eight and spatial capacities %ould $e used, as

%ill constraints such as deli)ery %ithin specified period minutes upon

picup .useful for perisha$le goods0 Time required at )arious stops in

terms of fi-ed time to par and )aria$le time dependent on amount to $e

loaded or offloaded can $e specified Tra)el speeds along )arious

typesBzones of roads can $e stipulated $y traffic information ser)ices

The organization schedules arri)al and departure times for each stop can

thus $e %ored out quite accurately =outes can $e generated

dynamically and ad hoc $achaul or other opportunities can also $e

assigned to the most suita$le )ehicle The $enefits of operational fleet

routing include considera$le reduction in fleet operating cost and

impro)ed customer ser)ice %ith $etter estimated arri)al time

V&nor Mana$& In7&ntor-

Jendor managed in)entory, coordinated $y an integrated logistics

system, allo%s in)entory to $e optimized together %ith transportation

"intas Freight and "ogistics try to no% the product )alue as %ell as

storage capacity .mainly %arehouse H ho% much to outsource0 As a

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routine jo$ the company collects information on consumption rate,

current in)entory le)els, forecasted demand and status of shipments

Thus the system can optimize the right quantities of replenishments to $e

sent at the right time to ensure that ser)ice le)els are maintained %hile

minimizing cost of in)entory and transportation

& Mo& o) Tran%*ortat#on

Transportation generally is mo)ement of product, goods, ra% materials

to different stages in supply chain (ssentially in supply chain logistics

plays a major role, the manner in %hich product is mo)ed from one

location to another is through road, rail, truc, air, sea

"intas Freight and "ogistics essentially uses only modes for their

operation they are air and sea The goods $eing deli)ered to end

customer is $rought to port or to the place through containers or other

methods lie %agons, or cold enclosures lie frozen storage As in KA(

rail transport does not e-ist, so it has got a rele)ant dra%$ac for the

company, as company has to stic on road for short routes and e)en

routes $et%een states of KA( and %hich is )ery much e-pensi)e and

increases the operational cost "intas Freight and "ogistics strategically

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manage the procurement, mo)ement, and storage of materials, parts and

finished in)entory through the organization and its mareting channels

(ssentially from companies@ angle, there are t%o categories, initially

in$ound logistics, ie, handling goods that are $rought into the company,

through road transport and storing and maing them a)aila$le Another

main phase is the out$ound logistics, taing the cargo or the goods

through channels, and is $eing done %ith considera$le effort to )arious

parts of the %orld as per the customer requirements

i !ntermodal Transportation System Ksed

This is the use of one or more than one mode of transport to

mo)e a shipment to its destination "intas F&" use this in an

efficient %ay Jariety used is road and sea in the case of

organization =eferring to Glo$al trade, this is the only option

as factories and marets may not $e ne-t to ports !t helps

reduce cost in operation /elps reduce cost that cannot $e

matched $y single mode (ssentially it is )ery con)enient for

shippers as %ell as consignee

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ii Attri$utes The price charged is reasona$le %ith regard to the

consignee, as organization has got a long term relation %ith

all the customers Ksually goods $eing transported are

electronics and frozen stocs from %arehouse The rele)ant

focus is on %arehouse, transportations ser)ices offered

Ser)ice is another aspect %hich focuses the ad)anced need of

the customer, initially %ith proper timing maintenance, order

management As the consignee is offered ser)ice $y +" lie

"intas F&" %ith fa)ora$le order management, and ease of

doing $usiness is attained $y logistics organization lie

"intas Freight and "ogistics

). T,& C,a&n$& Fa"& (- Or$an#8at#on%

!n today@s %orld, competence is taing on ne% dimensions The a$ility

to compete is $eing determined $y the degree of responsi)eness to

customers and ey issues handling /o% fast you deli)er the goodsB

products, %hat the price paid $y customers and %hat )alue customer is

getting throughout the ser)ice is considered in a schematic and ordered

%ay #arets are quic demanding and customization of each logistics

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acti)ities is essential for each customer, and has $ecome the essential

factor in logistics management

"intas Freight and "ogistics faces lot of ups and do%ns in each

operation and impro)es operation on each situation %hile dealing %ith

each customer "intas freight and "ogistics dominant impro)ement

methods used are

i hat are the customer e-pectationsE

ii /o% are your competitors performing in each aspect of

operationsE

iii Determining the gaps in each phase and try to fill it

$. E"ono'#" Or&r#n$ ?!ant#t- EO?

(fficient order quantities consider the +urchase rder Cost .+C0, the

Annual Demand rate .AD0, the !n)entory Carrying =ate .!C=0, and Knit

!n)entory Jolume .K!J0 "arge rder Uuantities yield high in)entory

le)els and high in)entory carrying costs $ut fe%er orders and lo%er

ordering costs /igh ordering costs and demand rates suggest large order

quantities /igh !C=s and high unit in)entory )alues suggest small order

quantities

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Generally during research the analysis sho%s, fe% organizations $elie)e

(U analysis is outdated and quite fe% %ith enhanced focus on it There

is rele)ant need for (U in this era (U analysis should $e completed

as a part of any in)entory strategy The analysis suggests appropriate

reordering inter)als for all items each organization is handling

Competitors focus on reducing the costs of placing purchase orders The

lo%er the purchase order cost, the more economical it $ecomes to order

in small increments and the less in)entory %ill $e there in the system

The purchase order costs is typically dominated $y the la$our and

paper%or costs of planning, negotiating, e-ecuting and tracing

purchase orders "arge num$er of organization e-tent to %hich these

functions can $e automated )ia automated purchase order planning, e

procurement, online catalogs, online $idding and online e-changes, is

the e-tent to %hich in)entory le)els and lost sales costs may $e reduced

in the supply chain and there to the efficiency of logistic operations

"intas Freight and "ogistics has a considera$le dra%$ac in this

scenario comparing to the other firms Cost is high in this situation for

ordering costs to the firm

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9.2 St!#&% on In7&ntor-> Ba" Or&r> Lo%t Sa&%> Sto" O!t%>

Pa"a$#n$ an Pa"a$#n$ Mat&r#a%> Do"!'&ntat#on )ro' L#nta%

Fr$,t 6 Lo$#%t#"%

a !n)entory

!n)entory is a list for goods and materials, or those goods and materials

themsel)es, held a)aila$le in stoc $y a $usiness !n)entory are held in

order to manage and hide from the customer the fact that

manufactureBsupply delay is longer than deli)ery delay, and also to ease

the effect of imperfections in the manufacturing process that lo%er

production efficiencies if production capacity stands idle for lac of

materials

There are three $asic reasons for eeping an in)entory

i Time The time lags present in the supply chain, from supplier to

user at e)ery stage, requires that you maintain certain amount of

in)entory to use in this 6lead time6

ii Kncertainty !n)entories are maintained as $uffers to meet

uncertainties in demand, supply and mo)ements of goods

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iii (conomies of scale !deal condition of 6one unit at a time at a

place %here user needs it, %hen he needs it6 principle tends to

incur lots of costs in terms of logistics So >ul $uying, mo)ement

and storing $rings in economies of scale, thus in)entory

[The Management of Business Logistics, oyle,

Bardi, Langley!

$ >ac rder

A company ha)ing to $ac order an item that is out of stoc %ill incur

e-penses for special order processing and transportation The e-tra order

processing traces the $ac orders mo)ement, in addition to the normal

processing for regular replenishments The customer usually incurs e-tra

transportation charges $ecause a $ac order is typically a smaller

shipment and often incurs higher rates The seller may need to ship the

$ac ordered item a longer distance The seller may need to ship the

$ac order $y a faster and more e-pensi)e means of transportation e

could estimate the $ac order cost $y analyzing the additional order

processing and additional transportation e-pense !f customers al%ays

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$ac ordered out of stoc items, the seller could use this analysis to

estimate the cost of stocouts The seller could then compare this cost

%ith the cost of carrying e-cess in)entory

[The Management of Business Logistics, oyle,

Bardi, Langley!

c "ost Sales

#ost companies ha)e competitors %ho produce su$stitute products, and

%hen one source does not ha)e an item a)aila$le, the customer %ill

order from another source !n such cases the stoc out has caused a lost

sale The seller@s direct loss is the loss of profit on the item that %as

una)aila$le %hen the customer %anted it Thus, a seller can determine

the direct loss $y calculating profit on one item and multiplying it $y the

num$er the customer ordered

(g !f the order %as 255 units and the profit is 25, the loss is 2555

!f the effort is made $y a sales man and if the effort is %asted and in that

sense it is an opportunity loss hether including such a cost is )alid

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%ould depend upon %hether the company uses sales people in its

mareting effort

Another aspect is determining the amount of a lost sale may $e different

and difficult in certain circumstances Iumerous companies customarily

tae orders $y telephone A customer may initially just enquire a$out

items a)aila$ility %ithout specifying ho% much is desired !f an item is

out of stoc, the customer may ne)er indicate a quantity and the seller

%ill not no% the amount of the loss

d Stocout

Cost incurred to a firm %hen current in)entory is e-hausted for one or

more items "ost sales re)enue costs are incurred %hen the firm is

una$le to meet current orders $ecause of a stocout condition

e +acaging and +acaging #aterials

#ainly this is a main di)ision in %arehouses +acaging interacts %ith

the logistics system in num$er of different and important %ays The size

of and protection afforded $y the pacage affect the type of materials

handling equipment used and the le)el of product damage incurred The

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pacage has an impact on the stacing height of the product in the

%arehouse and there$y on the utilization and cost of the %arehouse

+acaging is quite important for effecti)e damage protection, not only in

the %arehouse $ut also during transportation +acaging may contri$ute

nothing to a products )alue $ut its influence on logistics costs is

considera$le

+acaging size may affect a company@s a$ility to use pallets or shel)ing

or different types of materials handling equipment #any companies

design pacages that are too %ide or too high for efficient use of either a

%arehouse or transportation carrier So, coordinating pacaging %ith

%arehousing and %ith transportation is quite important e need to note,

poor pacaging can contri$ute to higher handling charges and result in

lo%er future sales if the goods arri)ed damaged

T%o types of pacing e-ist consumer pacaging and industrial

pacaging Consumer pacaging pro)ides information important in

selling the product ie gi)ing the product most )isi$ility %hen it comes

%ith others on the retail shelf n the other hand industrial pacaging is

of primary concern to the logistics The pacaging protects goods that a

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company %ill mo)e to store in the %arehouse and also permits the

company the effecti)e use of transportation )ehicle space

#aterials generally used in pre)ious years %as %ood and other harder

materials for no $reaage, $ut it added considera$le shipping %eight to

the transport and it further increased transportation cost Generally ne%

era has come up %ith efficient pacaging materials, organization

no%adays use most cost effecti)e pacaging %ith focus on security and

minimizing cost Cushioning materials protect the product from shoc,

)i$ration, and surface damage during handling Cushioning materials

include shrin %rap, air $u$$le cushioning, cellulose %adding, and

plastics Companies often use shrin %rap for consumer pacaged

goods +acaging also helped reduce pilferage and product tampering in

%arehouse and during transport Air $u$$le cushioning is made of

plastic sheets that contain air pocets There are other factors %hile

considering pacaging they are en)ironmental protection They are

considered in situations of perisha$le items lie food and drugs

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[CHAPTER 5]Resear$% &et%odolo'y


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/amriya +ort, Du$ai and ha)ing its $ranch office in #um$ai The total

num$ers of logistics organizations in and around this port are L555 in

num$er, %hich constitutes the population Similar, 255 organizations

ha)ing major operations in the Freight and "ogistics ha)e $een selected

as sample for the sur)ey The selection %as $ased on the sampling said

a$o)e

rochures


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>ar Diagrams

+ie Charts


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(ata )nalyss and Interpretaton

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=. Data 4na-%#% an Int&r*r&tat#on

The data collected through the questionnaire are analyzed to no% a$out

the respondents opinions a$out )arious particulars ased in the

questionnaire The data collected from the questionnaire %as entered

into spread sheet and the data has $een interpreted The questionnaire

comprises of fourteen questions %ith su$parts for each

The topics co)ered are %ith decisions of each operational area,

employee num$ers of each firm, profita$le area in operation, catering

location, ser)ice offering, organizational effecti)eness, in)entory,

location, product a)aila$ility and customer satisfaction

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a0 hich are the logistics ser)ices organizations offersE

Ta$le 2 Ser)ice ffer

S.

No.

S&r7#"& P&r"&nta$&

1 Fr$,t 1

arehousing O3

Crossdocing OO

P Iet%or Design LL< Va!& 4#n$

Chart2 Ser)ice ffer

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The pie chart a$o)e sho%s the ser)ice offer of each organization The

chart sho%s that 255M of the respondents pro)ide freight ser)ice and

almost 35M pro)ide arehousing and Crossdocing nly LLM %ere

pro)iding ser)ice of Iet%or Design ther ser)ice includes )alue

adding, %hich represents 3OM of the sample !t includes pacaging,

la$eling etc

$0 perating %ith other logistical pro)iders and reasons for decisions

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Ta$le perate ith "ogistical +ro)iders

Sr. No. D&"#%#on% P&r"&nta$&2 perational Sta$ility 22

Cost (ffecti)eness 25

Customer Ieeds L

9 Ot,&r =

Chart perate ith "ogistical +ro)iders

The pie chart a$o)e sho%s the operational decisions and reasons for

operations %ith other logistical pro)iders The chart sho%s that 3LM

of the respondents operate %ith other ser)ice pro)iders for different

reasons lie coordination, clearance, $ul operations etc Almost LM

ha)e operations %ith other pro)iders as per customer needs nly

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22M and 25 M %ere pro)iding ser)ice along %ith other pro)iders for

the purpose of operational sta$ility and cost effecti)eness

respecti)ely !t is stated that 3LM of organizations operate %ith other

logistical pro)iders and remaining PM as standalone

c0 hat is the mode of decisions regarding the operationsE

Ta$le #ode of Decision

S. No. O*&rat#ona D&"#%#on P&r"&nta$&

2 Strategic N

2 Ta"t#"a

perational L

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Chart #ode of Decision

The pie chart a$o)e sho%s the mode of decisions regarding the

operations The pie chart sho%s OOM of organizations tae tactical

decisions follo%ed $y LM %ith operational decisions and NM strategic

decisions #ost of the organizations ha)e a mi-ture of all the decisions

in their day to day as %ell as in long and short term plans

d0 hich is the area of the acti)ity, that organizations feel $est in

their ser)iceE

Ta$leP >est Acti)ity

S.

No.

S&r7#"& P&r"&nta$&

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1 Fr$,t

arehousing OL

Crossdocing ON

9 N&t+or D&%#$n 9

4 Jalue Adding 3N

Chart P >est Acti)ity

The pie chart a$o)e sho%s the $est acti)ity %hich organization feels in

their operations The pie chart sho%s 3OM of organizations ha)e freight

in the predominant area, follo%ed $y OLM of %arehousing Another

significant area is Crossdocing %ith ONM as $est acti)ity There is only

a minor acti)ity $ased on net%or design %ith PM in pie graph #ost of

the organizations ha)e a mi-ture of all the acti)ities in their day to day

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and 3NM of organization says other acti)ities $ring in more re)enue and

the $est of their acti)ities, %hich includes pacaging, la$eling etc

e0 Ium$er of employees in each type of the ser)ice rendered of the

organizations

Ta$le4i (mployees

S.

No.

D&*art'&nt% In Or$an#8at#on% N!'(&r o)

P&o*& #n

Ea",

P&r"&nta$&

67


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2 Top #anagement P4 22

perations PLO 22

Accounts B Finance P42 22

P #areting 42N 2

< H!'an R&%o!r"& 3A1

= Do"!'&ntat#on /Ot,&r% 19A 9i$liography

=eference

a "ogistical #anagement H Tata #cGra% 555 (dition

ritten $y Donald >o%erso-, and Da)id Closs

( The #anagement of >usiness "ogistics H Nth(dition

ritten $y (d%ard Q >ardi, CQohn "angley, and Qohn Qoseph

Coyle

" "ogistics and Supply Chain #anagement Creating Jalue Adding

Iet%ors

ritten $y #artin Christopher

99


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e$sites

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i)0 httpBB%%%uaeshippingnetB"intasFreight"ogistics

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100
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105


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108

global logistics project report

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