cm logistics freight forwarding and international marketing strategies
TRANSCRIPT
1.1 INTRODUCTION OF THE ORGANIZATION
a) Aim & Establishment of the company
CM logistics do the business in the field of packing and forwarding. The company has
been established by a group of professionals based on the principal of right source at
right time in right price and needless to say with right quality head-quarter In Delhi is
nerve centre for control. The management provides innovative and flexible solution to
its clients through its various branches across the India. The name for all your packing
needs, The mover who moves your belonging with utmost care & responsibility be it
your home or your business or industry. We at Sunrise’s strive hard to satisfy our
customers with safe and timely delivery. Our expertise leave no stones unturned while
fulfilling any activity is it packing, transporting, documenting, tracking or
rearranging.
They are the experts in Household packing be it you baby’s cradle or your delicate
crockery. They have the professionals who take care of all the delicate items you care
about the most. They will reach them in good condition and in time. They have the
facility of their goods according to the size and texture. They ensure that their
shipment is routed to its final destination efficiently and cost effectively. Every
shipment is a highly individualized experience; constant attention to expedite their
shifting process is own responsibility. They are representative stays in touch right
from pick-up to delivery and keeps closely informed of its progress.
Vision & Mission
Vision
Be the trusted partner to provide world class logistics and supply chain management
services to our customers and reach a market share of Rs. 100 crore by 2011
Mission
To be the most valuable link in our client’s supply chain through positioning the right
products, at the right place, at the right price, at the right time, in right condition.
Quality Consciousness :
CM Logistics Quality Policy
We are committed to provide excellent integrated logistics service to customers duly
meeting their quality and Delivery requirements with emphasis on total customer
satisfaction, long term relationship and also continual improvement of the Quality
Management System.
STRATEGIC OBJECTIVES
i. Sustained growth-optimising production potential in least possible time.
ii. Leadership in niche market and customer oriented marketing.
iii. Internationalisation of business.
iv. Cost competitiveness with international bench-marking.
SAFETY AND HEALTH POLICY
We are committed to:
a. Adhere legislation and government regulations related to safety and health in
corporate activity.
b. Foster safety and health awareness among its employees through preventable
measures, continuous development, awareness and improvement in the work
environment.
CORE VALUES:
i. Integrity
ii. Trust
iii. Caring for people
iv. Commitment to excellence
P ROMOTION STRATEGY OF CM Logistics :
1) Promotional tactics like advertisement and other promotional campaigning,
but for the brand building they follow Proper logos of CM Logistics.
2) For Promotion Company launches a new services follow proper usage of CM
Logistics logos on every vehicles, other resources.
SERVICES:
Storage & Warehousing
As transporting goods from one place to another is one of the most important
elements of our business, we provide warehouse facilities for your goods when in
transit.
We ensure the safety of your goods as our warehouses are spacious & well guarded.
We have warehouses and stores where your goods can be stored for a short or long
time. We keep round the clock security and adequate pest control measures further to
ensure the safety, and security of your goods. We have warehouse facility across India
ensuring the safety and timely delivery of your goods to the desired destination.
Insurance
Insurance is another essential factor in this service, as we have to transport your goods
to the desired destination, the safety of the goods is also our responsibility. The
insurance documentation is necessary as a precautionary measure towards the goods
in transit. The insurance documentations procedures will be taken care of by the
company.
Loading & Unloading
Our loading and unloading process is handled by expert professionals, well versed in
handling the goods with responsibility and proper guidance & Skill. We ensure
special care at these activities as most of the damages are caused due to wrong
handling of the goods. We also provide the facility of relocation the goods without
causing any distress to our customer.
Transportation
We have the facility to move your goods from your doorstep to the desired destination
& vice versa. We provide the vehicle services with our professional guide to reach
your goods safely in time.
Our Process
It's very simple! Just inform us about your requirements. We will depute an
experienced company consultant to survey your articles to assess your requirements
and specific needs. The surveying and assessing process helps us in determining the
appropriate packing materials and equipments to ensure complete safety of your
goods. Once you approve our offer, we will finalize packing and deliver according to
your schedule and needless to say, in time and in perfect shape. The only effort on
your part will be to provide us details of the undertaking and let our skilled crew
takeover.
Outbound Logistics
Once produced, goods need to be delivered to customers in a cost-effective way that
still meets expectations regarding service and availability. CM Logistics puts its
extensive experience in warehousing and distribution of finished goods at the disposal
of clients countrywide.
Throughout the network, we manage and operate warehouses on behalf of our
customers with a combined space of more than 2 lakh square ft. In most of these
warehouses CM Logistics stores finished products and spare parts. For
straightforward storage or other regular warehousing requirements we offer shared
facilities, which will lead to lower cost for our customers. We can also design and
implement customized storage facilities with additional features, including:
Dedicated warehousing
Multi-user warehousing
We can organize and manage all inbound and outbound transportation among
suppliers and warehouses or production facilities. This can include transport by air,
rail or road. We oversee the transportation arrangement and manage the entire process
directly.
Inbound Logistic:
Manufacturing and assembly plants need to get parts and raw materials in the right
sequence, the right quantity, the right quality and at the right time. In order to reduce
inventory levels, manufacturers need to streamline their supply chains and increase
their visibility.
CM Logistics is an expert in providing inbound logistics to, for example, the
automotive industry, and electronic industry.
Service extends beyond transportation and warehousing and includes:
Kitting
We manage the selection, packaging and delivery of unassembled parts prior to the
assembly line, with the goal of minimizing production and installation time. We
integrate the kitting process into our warehouse operations so that the process
becomes a seamless part of the inbound supply chain.
Milk runs
We optimize transportation flows, called milk runs, by performing multiple collection
or delivery routes for customers in the same industry. Instead of arranging for
transport from location A to location B and back, we plan fixed routes with various
loading/unloading points, combining the required orders from different customers at
the same time.
This ensures optimal use of vehicle capacity and lower transportation costs.
Customers benefit from more frequent deliveries at a lower cost.
Sequencing
Through our sequencing services, we arrange for items destined for a production line
to be picked (and packed) in a specific sequence. By doing this, time is saved and
production-line efficiency is improved.
Vendor Inventory Management (VIM)
We manage the inventory of several vendors in one warehouse, related to one or
several plants.
Lead Logistics Provider:
After redesigning and optimizing a customer's supply chain, will focus on managing
the information technology and information flows. The Lead Logistics Provider
(LLP) concept is based on the total management of the supply chain. As a Lead
Logistics Provider, we provide a wide range of logistics services to the entire supply
chain, sometimes by using carefully selected logistics partners or transport companies.
Our customer benefits from having just one logistics operator that oversees the entire
supply chain. As LLP, we act as a seamless intermediary between our customer and
the subcontracted providers, thus acting as a single point of contact for our customer.
Warehouse
CM Logistics’ warehousing and distribution services are an excellent complement to
your transportation requirements. Goods will move through your supply chain at a
high velocity. More importantly, you will minimize order cycle times and maximize
throughput, while reducing capital investment and inventory carrying costs
Warehousing and Distribution services include:
Shipment Consolidation/De-Consolidation
Strategic Warehousing
Pick N Pack
Cross Docking
FIFO/LIFO
Bin management
Reverse Logistics
Every customer has unique needs based upon their market requirements and
manufacturing constraints. CM Logistics works to design a warehouse strategy with
each client to optimize the overall supply chain efficiency Our WMS System allows
you to locate & store products in rack, bin, or bulk storage configurations and ensures
one hundred percent inventory accuracy, precise data management and full visibility
The best part is, warehouse layouts can be customized to meet your specialized order
fulfilment and storage requirements At CM Logistics, the benefits you'll receive from
our distribution services are simple: greater stock turns, increased product availability,
improved reporting, less inventory, reduced order times and more profitability.
Technology
At CM Logistics we focus on refining and perfecting our customers' logistics business
process and on delivering supporting technology solutions. We have developed a
range of supply chain management, inventory control, transportation and warehousing
software that optimizes material and information flows.
AS Logistics’’ OASIS (Online-Accurate-Supply chain-Information-System) is a
centrally hosted, integrated suite of supply chain technologies that enables us to
manage complex supply chains.
OASIS connects with the partners and supports inbound just-in-time logistics,
outbound logistics and reverse logistics across multiple industry verticals. It integrates
transportation, inventory management, order fulfilment, financial settlement. By
integrating all the processes in the supply chain, each customer is given real-time
visibility of inventory, order and shipment status. The increased optimization of the
distribution network leads to improved customer service and enhanced cost savings.
Oasis is a suite of applications that allows the activities of the supply chain to be
analyzed, re-planned, executed and monitored. No matter how complex the customer's
technology resources are, Oasis can be integrated to optimize costs, functionality and
flexibility.
OASIS automatically shares operating data among processes such as strategic
planning, optimization, warehousing activities and back office functions, and creates
significant supply chain efficiencies
The financial settlement module can manage the commercial billing of each
movement and associated ledger posting. A comprehensive integration environment
can manage data exchange with external systems and provide web access. The data
warehouse stores all transportation data.
Careers
Employment Opportunities at CM Logistics
With over 12 crores in annual revenues, and rapidly growing nationwide with a vision
of 100 crores by 2011, CM Logistics provides many great opportunities for career
growth. CM Logistics is family owned and operated. Company culture is rooted in
strong values of integrity, character, individual initiative and a commitment to
teamwork.
Employment Opportunities in CM Logistics include:
Accounting/Finance
Logistics
Administrative
Warehouse
Operations
Management
Sales
Drivers
Clerical
Maintenance
b) Departments of the Company
MD
OPERATIONAL HEAD
VC & AGM
FINANCE HEADMARKETING HEAD
OPERATION EXECUTIVE
ACCOUNTS EXECUTIVEMARKETING EXECUTIVE
DATA ENTRY OPERATOR
PEON/SECURITY
CLERK
DEPARTMENTS AND ITS WORKFLOW PROCESS
(END TO END)
Operation, Accounts, Marketing,
Work flow process for B TO B structure:
ORDER PLACEMENT
CLIENT
CONSIGNEER
ORDER PROCESS
VERIFICATION OF GOODS
INVOICE PREPARED
VEHICLE
SUPPORT
VENDER’S VEHICLE(3rd party)
ASL VEHICLE
ASL(HUB) WAREHOUSE
DOCUMENT GENERATION
INVOICE PREPARED
DATA ENTRY (ERP)
A/C COPYCONSIGNEE COPY
POD COPY MENIFEST THC SHEET (Truck hire contract)
GOODS DELIVERED TO CONSIGNEELOADED GOODS SENT TO BRANCHES
Accounts:
FUNCTIONAL OF DEPARTMENTS:
OPERATIONAL DEPARTMENT
Responsibility to focus on storage planning and management;
Warehouse property insurance company of all the work and is responsible for
the timely processing of claims related to post-Chuxian work;
At any time of verification and control inventory throughout the warehouse is
responsible for verification of “inventory daily report”, “monthly inventory
counts,” and “slow-moving machine weekly report” and other relevant
statements of inventory of goods between the various warehouses allocation
procedures and the handling of related documents;
Position is responsible for overall management of the total work;
Is responsible for timely and correctly handle the warehousing of emergency.
Overall guidance, monitoring, evaluation and coordination of the work of the
various branches of the warehousing distribution in order to meet the needs of
the local market sales;
ACCOUNTS:
To develop the company’s annual financial budget, final accounts audit
program.
The development companies to increase or decrease the registered capital
program.
In accordance with relevant state laws and regulations and the company
accounting system, true, accurate and timely reflect the company’s business
conditions;
ACCOUNTS SECTION
BILLINGPOD MAINTANENCE MONEY RECEIPT
The Governor’s various economic activities, ensure that the company all
economic activity in accordance with national laws and regulations and the
company operating under the premise of the financial system and ensure the
security integrity of the company’s assets;
To fulfill the company’s financial management responsibilities and carry out
sound financial budget, control, analysis and evaluation work , the effective
use of resources the company increase the company’s cost-effectiveness;
Head office logistics costs of the approved and audit work;
SWOT ANALYSIS:
Strength:
Distribution channel of CM Logistics
Working 6 days a week
Next day delivery services for nearby location
Opportunity:
Rise in demand for courier services
Global business diversification
Rise in manufacturing sector
Development in niche market
Weakness:
Less use of technology
Man power
Less of brand awareness among the people.
Threat:
Competitors (big brand companies and Unorganized sectors)
Risk in operational cost.
1.2 OBJECTIVE/OBJECTIVES OF THE STUDY:
The objective of the study is to come out for freight forwarder which are operating
there operation in various regions worldwide and are very reliable in terms of certain
perspectives on the basis of which they are selected by there exporter and importer.
The perspectives which were focused at the time of conducting the study are
following:
To know about the logistic and it’s importance for export – import.
How to improve the market for logistic
Present conditions are of freight forwarder or export and import
What kind of services are providing by freight forwarder
Where India stand in global world
Role EDI is really help full in India logistic system or not
Is computerization helpful in their tracking system
What are the problem related to export and import processes
Is new foreign trade policy is helpful or not
Which mode is selected by the company to export and import
On what basis did exporter and importer select the freight forwarder agency
What a freight forwarder does to improve there services
What is present scenario of export and import in NCR
Number of shipment and cargo by an exporter & importer.
Are the cargo & shipment are move through FCL or LCL
LITERATURE REVIEW
Freight Services
CM Logistics worldwide freight services ships to anywhere in the world with
programmed on-time collection and delivery. Our expertise offers clients timely and
cost-effective solutions that meet their specific needs.
Air Express
Clients requiring reliable airfreight services can count on CM Logistics expertise. We
offer airfreight import, export, transshipment and drop shipments to and from all
major cities in the world with programmed on-time delivery and collection. Our
airfreight service features:
Direct airfreight services to all destinations in the world.
Economy services to reduce freight cost with choice of reliable carriers.
Worldwide availability of import and export consolidation services
Sea Freight
CM Logistics deep ocean freight services include sea freight import, export,
transshipment and drop transshipments to the major ports of the world. Our service
features include:
Shipping goods in full container load, ocean cargo consolidation, bulk cargo
and customized payload to suit special needs.
Regular services to and from various destinations.
Frequent sailings with back-up services and facilities worldwide.
Scheduled Consolidation
CM Logistics is your one-stop logistics solutions provider. Besides freight
forwarding, we consolidate cargo from suppliers and arranges for storage in the
warehouse at the airport. Our service includes stuffing the cargo into containers.
Preferred Delivery
Just let us know when you want your cargo delivered, and CM Logistics will make
sure it will reach you safely and timely.
Multimodal Transshipment
Worried that your shipment may be held up by poor coordination? Be assured that
CM Logistics experienced transshipment experts will arrange for the clearance of sea
freight import and coordinate for your cargo to take the first available connecting
flight to its destination. Our service features:
Providing the best possible mode of combined traffic.
Ensuring the best use of time and cost factor to maximize client's
competitiveness in today's market.
Connecting Asia Pacific and the Indian Subcontinent with Europe, North and
South America in the manner that best suits clients' needs.
Project Forwarding
CM Logistics arranges for timely imports into India and delivers the cargo to
consignee's premises.
Air-Land-Sea Charter
CM Logistics provides scheduled air-land-sea charters for any specific size or weight
shipment as required by clients. No matter where your shipment is going worldwide,
you can rely on CM Logistics to arrange it.
EXIM
FTP, Annual supplement
Mr.KAMAL NATH MINISTER OF COMMERCE & INDUSTRY
GOVERNMENT OF INDIA had issue this Annual supplement 2008.
Original ANNUAL SUPPLEMENT 2008
TO FOREIGN TRADE POLICY 2004-09
FOREWORD
Four years ago we had announced India’s first ever integrated Foreign Trade Policy
for the period 2004-09. At that time we had indicated two major objectives
s, namely (a) to double our percentage of global merchandise trade within 5 years, and
(b) to use trade expansion as an effective instrument of economic growth and
employment generation.
I am pleased to say that our achievements have exceeded our expectations. Not only
have we fulfilled our promises in substantial measure, but we have achieved these
remarkable results in just four years, instead of five.
In 2004 our exports stood at a little over US $ 63 billion. In 2007-08, they have
exceeded US $ 155 billion; our exports are not just double what they were 4 years
ago, but 2½ times that. We have managed an average cumulative annual growth rate
(CAGR) of 23%, year on year, way ahead of the average growth rate of international
trade.
Our total merchandise trade – exports and imports together – will be almost US $ 400
billion this past year, accounting for nearly 1.5% of world trade. If the trade in
services is added to this, our commercial engagement with the world would be in the
region of US $ 525 billion.
We have delivered on our second objective as well: that of fashioning trade into an
instrument of economic growth and employment generation. Our total trade in goods
and services is now equivalent to almost 50% of our GDP. This is unprecedented in
India’s modern economic history.
On the issue of employment, it is our estimate that during the last 4 years increased
trade activity has created 136 lakh new jobs. I have always maintained that exports
are not just about earning foreign exchange but about boosting our manufacturing
sector, creating large scale economic activity and generating fresh employment
opportunities.
What is more remarkable about all these achievements is that they have been
accomplished in the face of appreciation of the rupee (by more than 12% in the last
year alone), high interest rates, spiraling oil prices, withdrawal of some GSP benefits
to India by other countries and general international economic slowdown in some of
our major trade markets. In spite of all this our exporters have shown great resilience.
For this, they deserve our congratulations.
It is in this context that I am happy to present the final Annual Supplement to the
Foreign Trade Policy for 2004-2009. In this Supplement, we have proposed several
innovative steps, which include the following:
i) To promote modernization of our manufacturing and services exports, the
import duty under the EPCG scheme is being reduced from 5% to 3%.
ii) Refund of tax on a large number of services relating to exports has already
been announced by the Government. A few remaining issues regarding refund
of service tax on exports would also be resolved soon.
iii) Income tax benefit to 100% EOUs available under Section 10B of Income Tax
Act is being extended for one more year, beyond 2009.
iv) Sports and toys are mainly produced by our unorganized labour intensive
sector. To promote export of these items and also to compensate disadvantages
suffered by them, an additional duty credit of 5% over and above the credit
under Focus Product Scheme is being provided.
v) Our export of fresh fruits and vegetables and floriculture suffers from high
incidence of freight cost. To neutralize this disadvantage, an additional credit
of 2.5% over and above the credit available under VKGUY is proposed.
vi) Interest relief already granted for sectors affected adversely by the
appreciation of the rupee is being extended for one more year.
vii) The DEPB scheme is being continued till May 2009.
We still face many structural problems, which need to be addressed. We have to plan
an integrated strategy to tackle these issues. We need to develop world class
infrastructure. We need to encourage e-commerce, and to facilitate trade through EDI
such that turn-around time at ports, airports, Inland Container Depots and Land
Custom Stations match world standards. We cannot rest our laurels in terms of trained
manpower. We need to establish a chain of sector-specific skill development
institutes. Early implementation of a single Goods and Services Tax (GST) would
enable simultaneous reimbursement of duties and taxes in line with government’s
policy that these should not be exported.
LOGISTICS
Logistics defined
Logistics is defined as the broad range of activities concerned with effective and
efficient movement of semi-finished or finished goods from one business to another
and from manufacturers/distributors/retailers to the end consumers. The activities
within the sphere of logistics include freight transportation, warehousing, material
handling, protective packaging, inventory control; order processing, marketing,
forecasting, and customer service. The Council of Logistics Management (CLM) has
also formulated the following definition of logistics with a flow and process
orientation.
“The process of planning, implementing, and controlling the efficient, cost-effective
flow and storage of raw materials, in-process inventory, finished goods, and related
information and financials from point of origin to point of consumption for the
purpose of conforming to customer requirements”
LOGISTIC MANAGEMENT
A. Push Versus Pull Strategy:A promotion strategy that calls for using the sales force and trade promotion to push the product through the channel is called push strategy. The producer promotes the product to wholesalers, thewholesalers promote to retailers and the retailers promote to consumers. While the pull strategy is the promotional strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand; if successful, consumer will ask their retailers for the product, the retailer will ask the wholesalers and wholesalers will ask the producers. So these are two strategies through which availability of products can be created in the market for final consumers.
B. Physical Distribution and Logistics ManagementCompanies must decide on the best way to store, handle, and move their products and services sothat they are available to customers in the right assortments, at the right time, and in the rightplace. Logistics effectiveness has a major impact on both customer satisfaction and company costs.Here we consider the nature and importance of marketing logistics, goals of the logistics system, major logisticsfunctions, and the need for integrated logistics management.
a. Nature and Importance of Physical Distribution and MarketingLogisticsTo some managers, physical distribution means only trucks and warehouses. But modern logisticsis much more than this. Physical distribution—or marketing logistics—involves planning,implementing, and controlling the physical flow of materials, final goods, and related informationfrom points of origin to points of consumption to meet customer requirements at a profit. Inshort, it involves getting the right product to the right customer in the right place at the right time.Traditional physical distribution typically started with products at the plant and then tried to findlow-cost solutions to get them to customers. However, today's marketers prefer market logisticsthinking, which starts with the marketplace and works backward to the factory. Logistics addressesnot only the problem of outbound distribution (moving products from the factory to customers)but also the problem of inbound distribution (moving products and materials from suppliers to theIt involves the management of entire supply chains, value-added flows from suppliers to final users.b. Goals of the Logistics System.Some companies state their logistics objective as providing maximum customer service at the least cost.
KEY TERMS (Lesson # 28-29)
Distribution channel
A set of interdependent organizations involved in the process of making a product or serviceavailable for use or consumption by the consumer or business user.
Channel level
A layer of intermediaries that performs some work in bringing the product and its ownershipcloser to the final buyer.
Direct marketing channel
A marketing channel that has no intermediary levels.
Indirect marketing channel
Channel containing one or more intermediary levels.
Channel conflict
Disagreement among marketing channel members on goals and roles—who should do what andfor what rewards.
Conventional distribution channel
A channel consisting of one or more independent producers, wholesalers, and retailers, each aseparate business seeking to maximize its own profits even at the expense of profits for the systemas a whole.
Vertical Marketing System (VMS)
A distribution channel structure in which producers, wholesales, and retailers act as a unifiedsystem. One channel member owns the others, has contracts with them, or has so much powerthat they all cooperate
Corporate VMS
A vertical marketing system that combines successive stages of production and distribution undersingle ownership—channel leadership is established through common ownership.
Contractual VMS
A vertical marketing system in which independent firms at different levels of production anddistribution join together through contracts to obtain more economies or sales impact than theycould achieve alone.
Franchise organization
A contractual vertical marketing system in which a channel member, called a franchiser, linksseveral stages in the production-distribution process.
Administered VMS
vertical marketing system that coordinates successive stages of production and distribution, notthrough common ownership or contractual ties but through the size and power of one of theparties.
Horizontal marketing system
A channel arrangement in which two or more companies at one level join together to follow a newmarketing opportunity.
Hybrid marketing channel
Multi channel distribution system in which a single firm sets up two or more marketing channels toreach one or more customer segments.
Intensive distribution
Stocking the product in as many outlets as possible.
Exclusive distribution
Giving a limited number of dealers the exclusive right to distribute the company's products in theirterritories.
Selective distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry thecompany's products.
Physical distribution (or marketing logistics)
The tasks involved in planning, implementing, and controlling the physical flow of materials, finalgoods, and related information from points of origin to points of consumption to meet customerrequirements at a profit.
Distribution center
A large, highly automated warehouse designed to receive goods from various plants and suppliers,take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
Integrated logistics management
The logistics concept that emphasizes teamwork, both inside the company and among all themarketing channel organizations, to maximize the performance of the entire distribution system.
Third-party logistics provider
An independent logistics provider that performs any or all of the functions required to get theirclients' product to market.
Logistics and its Importance in the Indian Context
Logistics is about moving materials, information and funds from one business to
another business or from a business to the consumer. Logistics is an important part of
the business-economic system and is a major global economic activity. In fact, 10-
15% of product costs are logistics related. World wide logistics is about 2 Trillion US
dollars. For any country, the logistics cost are estimated to be between 9 – 20% of
GDP. Logistics is a necessary evil to move the material from the seller to the buyer
and there is generally no value addition to the product. Hence efficiency and cost
effectiveness provide competitive advantage. Over the last decade, the logistics costs
have come down from 15% to 9% in the USA.
In olden days logistics was local, involving storage and material movement from one
city to another city by train or truck. The lowering of trade barriers by various
countries, combined with rapid advances in global transportation and information
technology, has led to the proliferation of global manufacturing networks. Now
manufacturing and services are global to take advantage of low cost wage structures
and also to reach the local markets.
In global manufacturing of this kind, components may be sourced from several
countries, assembled in yet another country, and distributed to the customers all over
the world.
Information transfer regarding the location and status of moving inventory, payments
and also the customs paper work plays a big role in efficient logistics. These networks
are not generally under single ownership but are group formations of independent
companies in alliance for a specific and special purpose. They compete with similar
cooperating networks. Such networks are common in all industrial sectors including
the automobile, pharmaceutical, and aero-space, electronics, computer, food, and
apparel industries. Thus, logistics and supply chain management are of fundamental
importance to any economy. Since logistics involves global movement of materials,
information and funds from country to country it requires excellent state of the art
country infrastructure such as airports, sea ports, Internet and other IT and finance
related facilities.
Having good logistics infrastructure and culture is becoming a prerequisite for
attracting global manufacturing and service companies in to the country.
Logistics Growth Strategies
While logistics is generally given importance in manufacturing, it has a vital and
important role to play in agriculture and service industries. In this paper, we make the
following important points.
1. In India manufacturing accounts for 25% of GDP, about USD 125 Billion and
provides employment for 16% of the population. In other developing
economies it is generally 40% of GDP. Recently there is a debate, following
the success of IT companies in the global markets, whether India should
jettison manufacturing and concentrate on IT and other service sectors. We
strongly believe, however, that CII Logistics 2003 Theme Paper this is based
on wrong premises and that on the other hand a ten-fold growth in
manufacturing will be very important for India. We cite the following reasons
in support.
a. 75% of India’s working population (600m) has education middle school or
below. Only Labour intensive manufacturing and related services can generate
employment in adequate numbers
b. Experience of Europe, America, Japan, the Tiger economies, and now China
shows that Wealth creation is possible only through International trade
oriented manufacturing. More importantly, it is essential for India to increase
its proportion of Global GDP through growth in all the three sectors of the
economy.
It has currently 1/6 of population and 1/60 of the global GDP. Planned or wild,
growth is essential and important. This could be through attracting MNCs to India or
through Indian companies becoming MNCs and raising funds through NASDAQ or
large number of small companies raising capital from international venture sources.
2. With products being uniform, standardized and commoditized: same colas,
same PCs, same hand phones sold throughout the world, the logistics has
become a dominant part of the competitiveness equation. In future, all
competitive supply chains will have aggressive and excellent logistics
partners. A well articulated logistics strategy is a must for India. While it may
take decades to develop state of- the-art air, rail, road and shipping
infrastructure, it is necessary immediately to develop appropriate supply chain
clusters to support the three sector of the economy.
A supply chain cluster is a geographically concentrated, self flourishing
ecosystem comprising of production systems, shippers, logistics service
providers, IT vendors, infrastructure providers, regulatory agencies, research
institutions, consultants and other logistics-related organizations that
leverages on the interdependencies between them to provide highly efficient
and effective logistics solutions and create innovative new solutions.
Simultaneous development of the supply chain cluster companies is possible
with careful planning and aggressive marketing to attract MNCs in
manufacturing and third party Logistics providers (3PLs). This is important
since they bring with them global experiences and also provide the obvious
economies of scale advantages.
3. As we said before, logistics in direct supply chains: raw material to product
delivery to the customer is given importance throughout the world. Logistics is
equally important in other two sectors of the economy i.e. Agriculture and
Service sectors. The techniques of supply chain management developed for
manufacturing are also directly applicable in case of agriculture.
a. Improving distribution efficiency of the agri-supply chain from farmer to
end consumer through intermediaries such as regional agents, wholesalers,
fair price shops, retail stores and distributors. Mapping the supply chain
and using IT for providing the visibility along the supply chain will
improve the efficiencies by orders of magnitude.
b. Manufacture and distribution of fertilizers and farm equipment
c. Transformation of produce into processed and canned food and their
subsequent distribution to consumers and storage along the way. Use of
procurements kind of techniques in restaurants and in food courts CII
Logistics 2003 Theme Paper
4. In the service sector, the opportunities are innumerable. In health care,
construction industry, Infrastructure building, and in retailing logistics can play an
important and pivotal role to improve the service levels.
a. In retail services, goods sold through stores are delivered through an elaborate
network of distributors and logistics services.
b. Trade finance services provided by banks complement transportation services
provided by 3PLs.
c. Healthcare services involve coordination between multiple parties of doctors,
hospitals, pharmacists, medical equipment manufacturers, etc. These
interactions and processes are logistics-based. In clinical trials, drugs and
patient samples are exchanged between multiple patients and research
institutes.
d. Storage and timely distribution of spare parts for repair and maintenance of
heavy machinery and equipment is an important element of after-sales service
ensuring reliable performance.
Opportunities specific to India
A number of opportunities, specific to the Indian context, present themselves to
enterprising companies. Some of these opportunities are related to addressing national
concerns while others would enable the Indian economy to be internationally
competitive.
1. Outsourcing, Research & Development of IT enabled Logistics: India is a
globally acknowledged IT powerhouse. This strength must be exploited by
Indian companies to develop specific capabilities in IT-enabled Logistics such
as the development and management of logistics planning and coordination
systems. Leading Indian IT companies can complement their IT expertise with
logistics domain knowledge to develop 4PL capabilities for global
manufacturing and service industries.
2. Logistics for Large Infrastructure and Engineering Projects: The recent focus
on infrastructure has given birth to a wave of projects such as the construction
of airports, seaports, industrial parks and national highways. Often such
projects run into costly time and budget overruns. These overruns can however
be easily reined in through proper logistics management and coordination of
various activities.
3. IT systems for International Trade Logistics: One of the key contributing
factors for the inefficiencies of the Indian manufacturing and logistics sector is
the complexity of the international trade documentation process.
Internationally, pioneering countries such as Singapore and Hong Kong have
implemented automated trade systems such as Trade Net and Digital Trade
Transportation Network for trade documentation and customs permit
applications. The UN has estimated that such systems can save up to 3% of
import value through efficiencies resulting from automated and standardized
trade documentation. Such systems would make Indian goods more
competitive globally. CII Logistics 2003 Theme Paper
Conclusions
India should recognize the extraordinary role logistics plays in economic
development and in enhancing the competitiveness of all the three sectors of the
economy. Given the emerging business and technological trends there are possibilities
for the adoption of innovative logistics solutions specifically designed for India? In
addition there is a requirement for an integrated strategy towards developing logistics
and IT infrastructure and also enhancing its industry base. The resources needed for
wholesale development takes enormous amounts of time and resources. A planned
phased approach for Integrated Logistics in needed. Our Theme paper is an attempt at
presenting such an approach.
The success of today’s market leaders such as Wal-Mart, Dell, Cisco and Toyota
is primarily based on their superior operational and logistics capabilities.
2. ECONOMIC RELEVANCE OF LOGISTICS
Even though logistics thinking and practice has progressed rapidly over the last few
years, driven primarily by radical business and technological innovations, the true
value and relevance of logistics in the business ecosystem is rarely appreciated. The
importance of logistics in the economy of a nation is established both, by the size of
the logistics industry, and by its ability to transform and impact all three sectors of the
economy, agricultural, manufacturing and services. In fact investments in logistics
infrastructure and services have a multiplier effect on the entire economy of a nation.
A good logistics network can reduce inventory levels in the industry, increase the
market reach of companies and allow them to procure supplies from a larger base of
suppliers.
The importance of logistics in the economy of a nation is established both, by the
size of the logistics industry, and by its ability to transform and impact all three
sectors of the economy: Agriculture, Manufacturing and Services.
2.1 Size of the Logistics Industry
Logistics is a major economic activity across the world. The global logistics industry
is estimated at roughly over $2 trillion, with less than 5% outsourced worldwide.
Logistics costs on average account for 10-15% of the final cost of the finished product
in the developed world. These logistics costs, based on studies conducted in the
United States include transportation costs which amount to 7-9% of the cost of the
final product, warehousing costs in the range of 1-2% and inventory holding costs
which are 3-5% of the final product cost. In the developing world, it is expected that
logistics costs will be higher due to greater inefficiencies in logistics system and it is
estimated that these costs are in the range of 15%-25% of the final cost of the product.
In India the logistics costs are 13% of GDP (CII).
Logistics in India differs from the developed nations in three important aspects.
1. Relatively small manufacturing base.
2. High logistics cost relative to the GDP.
3. The very low penetration of specialist 3PL providers in the country.
2.1.1 State of the Indian Logistics Industry
These effects can be attributed to the lack of proper logistics infrastructure (both
physical and infocomm), disorganized paper-based and manual processes, fragmented
supply chains and other systemic flaws in the country that have resulted in huge
process in efficiencies. The lack of a countrywide infocomm B2B network and the
poor. Conditions of roads results in capital being tied up in huge stockpiles of
obsolete goods both in terms of moving inventory as well as at the factory sites. In
addition, the mindset and culture of outsourcing logistics activities to capable third-
party logistics service providers is just emerging. The lack of proper infrastructure has
also resulted in the absence of world-class logistics service providers. In fact, there is
no general awareness of standard logistics practices and due to the protected
environment for Indian industries there was no incentive for
Companies to improve their operational performance till recently. A part of the reason
is the lack of professionally competent logisticians. Furthermore, there has been
limited concerted effort by the government to articulate an Industry growth policy and
also to prioritize the formation of industry clusters and identification of their logistics
needs. We will elaborate on this later in this paper
Potential savings for India if logistics costs decrease by 1% are approximately
$4.8 Billion per year.
Table no.2 Table 1: State of Indian Logistics
However, if these systemic obstacles are overcome significant benefits can be reaped
through the multiplier effect of better logistics on all economic sectors.
2.2 Logistics in the Three Sectors of the Economy
Logistics sustains all three sectors – agricultural, manufacturing and service - of the
economy by providing life-supporting arteries that transport essential goods and
services
2.2.1 Agriculture
The agriculture sector comprises of a number of inter-related value chains.
1. Agriculture Value Chain: The agriculture supply chain starts with the farmer
who harvests food crops. The farmer sells its harvest to intermediaries such as
regional agents, who comprises of millers and end consumers wholesalers,
who in turn sell to distributors, retail shops and fair price shops who distribute
the produce to the end consumer.
2. Supporting Manufacturing Services: The supporting value chain for
agriculture comprises fertilizer producers and distributors, grain distributors,
tractor, and farm equipment manufacturers. Logistics services play an
important role in getting these goods to the farmer and in supporting the
production of food crops. Financial institutions, Insurance agents, government
agencies and other organizations play important supporting roles as well.
3. Processed Food Value Chain: The processed food value chain is responsible
for converting food grains into processed/canned foods and getting it within
reach of end consumers. Increasingly ready-to-eat food products are being
targeted by a number of large manufacturing and the retail distribution
companies. Also, linking the chain restaurants with the grain producers can
induce efficiencies.
Figure 1: Supporting Value Chain for Fertilizers
Typically, the Indian agricultural value chain is long and slow. In fact, in many cases
the end distribution of food grains, fertilizers and other agricultural products and
services is undertaken through bullock carts, hand carts. Given that these products are
perishable and also subject to attacks by pests, it is important that transport and
storage of these items is undertaken with care. Currently the chain is full of
inefficiencies introduced by various partners along the chain. There is also a lot of
wastage at the interfaces in the chain, as can be seen from the huge stockpiles of
rotting food grains at warehouses across the country. It is also not uncommon to see
expired food products reaching the retail shelf. Agricultural trading and financing
activities are also closely tied up with the logistics of agricultural produce but are still
not well understood in the Indian context.
2.2.2 Manufacturing
Manufacturing today is driven by global demands and forces. Global manufacturing is
characterized by the staged production of goods by multiple companies across
multiple countries and regions. In a national context, components may be sourced
from several different regions, assembled in another region, and distributed to
customers across the country and even across the world. Logistics plays a critical role
in coordinating procurement, manufacturing and distribution in such a distributed
manufacturing environment. A well managed manufacturing logistics operation can
help companies reduce the cost of transportation and minimize inventory, reducing
the cost of inventory holding and freeing up capital. In fact leading companies have
successfully employed logistics and integrated supply chain networks to minimize
their costs and simultaneously improve and differentiate their product and service
offerings to their customers.
India has currently 1/6 of global population and 1/60 of the global GDP.
Planned or wild, growth is essential and important. This could be through
attracting MNCs to India or through Indian companies becoming MNCs and
raising funds through NASDAQ or large number of small companies raising
capital from international venture sources.
Integrated Supply Chain Networks
An Integrated Supply Chain Network (ISCN) is a collection of independent
companies, possessing complementary skills and integrated with streamlined material,
information and financial flows, that work together to meet the market demand. The
formation of an ISCN is typically driven by the most dominant company in the supply
chain that is seeking to focus on its core competencies and leverage on the
manufacturing and logistics expertise of other companies in the chain. We refer to
these dominant companies as network owners. Network owners dictate the structure
of the ISCN through their choice of companies constituting the ISCN and ensure
proper coordination between them. In the automotive and hi-tech value chain the
OEMs typically play the role of the network owner. In case of the retail value chain
the distributor is the normally the network owner.
2.2.3 Services Sector
Logistics-enabled service chains arise in a number of different contexts. The service
sector amongst others comprises of the financial, healthcare, retail and the
telecommunications industry. A number of processes in these industries are closely
related to logistics. For example, the goods sold through retail stores are delivered
through an elaborate network of manufacturers, distributors and logistics service
providers. Trade finance services provided by financial institutions are
complementary to transportation services provided by logistics service providers.
Healthcare services involve a tremendous amount of coordination between multiple
parties of doctors, hospitals, pharmacists, medical equipment manufacturers, medical
consumables manufacturers, etc., all managed through systematic management of
patient records. Even though it might not be very obvious, on closer inspection it may
be noticed that all these processes are logistics-based. Another manner in which
logistics manifests itself in service industries is in the form of supporting after-sales
repair and maintenance of goods and products. The after the sale service sector for
aircrafts, automobiles, and other capital goods is a highly lucrative emerging business.
Some of the after-sales services involving logistics include returns handling of
defective goods, spare parts distribution for repair of spoilt items based on service
level agreements, servicing of products over their entire life cycle and reverse
logistics for disassembly and green disposal. The distribution and maintenance of
adequate spare parts to ensure timely repair of spoilt goods for the customer, within
promised service level agreements, is a very important logistical function. Such
services are often provided by manufacturers of automobiles, medical equipments,
defense systems and airplanes.
Manufacturing related service industries support after-sales repair and
maintenance of products such as aircrafts and airplanes.
Figure 2: Logistics within Clinical Trial Process
Evolution of Logistical Integration, 1960-2000
Fig no.3: evolution of logistics integration
The evolution of logistics has been characterized by an increasing degree of
integration, a trend that was underlined in the 1960s as a key area for future
productivity improvements. However, only with the implementation of modern
information and communication technologies did this assumption become possible.
They allow for the integrated management and control of information, finance and
goods flows and made possible a new range of production and distribution systems.
Step by step, and according to improvements in information and communication
technologies, the two ends of the assembly line became integrated into the logistics of
the supply chain: the timely supply of raw materials and components from outside,
and the effective organization of distribution and marketing.
High rack storages, which later became automatically driven, or the internal
movement of packages by flat robots were early expressions of logistical engineering.
Initially, logistics was an activity divided around the supplying, warehousing,
production and distribution functions, most of them being fairly independent from the
other. With the new organization and management principles, firms were following a
more integrated approach, thus responding to the upcoming demand for flexibility
without raising costs. At the same time, many firms took advantage of new
manufacturing opportunities in developing countries. As production became
increasingly fragmented, activities related to its management were consolidated.
Spatial fragmentation became a by-product of economies of scale in distribution.
From Push to Pull Logistics
Freight distribution is within a paradigm shift between "manufacture-to-supply" or
inventory-based logistics ("push" logistics) to "manufacture-to-order" or
replenishment-based logistics ("pull" logistics). The reliance is shifting from
maintaining inventories aimed at approximately satisfy the demand to a
comprehensive data collection system insuring, mainly through on-demand transport,
that supply matches with demand. This trend is accelerated by logistics, namely a
better integration between transport modes and inventory control. Of particular
relevance to the logistics industry has been the emergence of major coordinators and
integrators (third and fourth-party logistics providers) that will improve a part of the
supply chain. While a push logistics system involves a limited level of integration
between suppliers, manufacturers and distributors, a pull logistics system tries to
achieve a higher level of efficiency through integration. Freight flows between
components of the supply chain tend to be more frequent and in smaller batches. In
addition, the sharing of demand dependant data (such as sales) helps better
synchronize supply with demand. Reverse logistics also tends to be better integrated
in the system to achieve a higher level of customer service as well as to promote
environmental strategies such as recycling.
Fig no 5 Fig 1.2:From push to pull logistics
Market Development in Logistic
. Marketing Research
.Planning
.4 p of marketing
.Marketing development
.Collection of new data base for feature prospecting
INTERNATIONAL MARKETING
International Marketing is simply the application of marketing principles to
more than one country. However, there is a crossover between what is
commonly expressed as international marketing and global marketing, which
is a similar term. For the purposes of this lesson on international marketing
and those that follow it, international marketing and global marketing are
interchangeable.
Urgent requirement for "Marketing" in Freight Forwarding Company (International Client)
-Interact with international client.
-Responsible for generating Sales from corporate clients to Traders
across nation.
-Building relationship with existing clients and developing their accounts
by increasing the services provided to them.
-Developing new client of Importers/Exporters for their courier and cargo
needs and retaining them.
-Handling sales and updating clients for Import/Export shipments.
-Gathering market & customer information to provide the customers the best
services.
Marketing research
“Market research is crucial to a corporation’s marketing process. I don’t think
anybody ought to be making marketing decisions without some form of research,
because you can waste a lot of time and money.”
Marketing planning
Your company needs a vision, the vision demands a strategy, the strategy requires a
plan, and the plan requires action. A Japanese proverb says: “Vision without action
is a daydream. Action without vision is a nightmare.” You need to prepare a
detailed marketing plan. But it makes more sense to call it a battle plan. Your plan
should give you confidence that you will win the war before you engage in the first
battle. If you aren’t introducing something better, newer, faster, or cheaper, you
shouldn’t enter the market. A marketing plan consists of six steps: situational analysis,
objectives, strategy, tactics, budget, and controls.
1. Situational analysis. Here the company examines the macro forces (economic,
political-legal, social-cultural, technological) and the actors (company,
competitors, distributors, and suppliers) in its environment. The company
carries out a SWOT analysis (strengths, weaknesses, opportunities, and
threats). But it should really be called a TOWS analysis (threats, opportunities,
weaknesses, and strengths) because the ordering should be from the outside in
rather than the inside out. SWOT may place an undue emphasis on internal
factors and limit the identification of threats and opportunities to only those
that fit the company’s strengths.
2. Objectives. Based on identifying its best opportunities from its situational
analysis, the company ranks them and sets goals and a timetable for achieving
them. The company also sets objectives with respect to stakeholders, company
reputation, technology, and other matters of concern.
3. Strategy. Any goal can be pursued in a variety of ways. It is the job of strategy
to choose the most effective course of action for attaining objectives.
4. Tactics. The strategy must be spelled out in great detail regarding the 4Ps and
the actions that will be taken in calendar time by specific individuals who are
to carry out the plan.
5. Budget. The company’s planned actions and activities involve costs that add
up to the budget that it needs to achieve the objectives.
6. Controls. The company must set review periods and measures that will reveal
whether it is making progress toward the goal. When performance lags, the
company must revise its objectives, strategies, or actions to correct the
situation. To facilitate the planning process, your company should work out a
standard plan format to be used by all the divisions and product groups. This
will make it possible for the plans to be reviewed, compared, and evaluated by
the planning or strategy office. One large multinational corporation has a
planning office that scores the various plans before they are approved. The
office applies such criteria as:
• Is the situational analysis fairly complete?
• Are the goals reasonable and reachable in the light of the situational
analysis?
• Does the strategy seem adequate to deliver the stated goals?
• Are the tactics well aligned with the stated strategy?
• Is the expected return on investment sufficient and credible?
Deficient plans are returned to division or product groups for revision along suggested
lines. The use of a standard software planning program enables the planners to
quickly revise their plans in response to criticism or unforeseen circumstances. In an
advanced case, a company builds a model to estimate how hypothetical revisions in its
advertising budget, sales force size, or prices will affect sales and profits. The Hudson
River Group, for example, has developed marketing strategy simulators for different
companies to help guide the allocation of marketing resources to their best uses. The
benefit of planning may lie less in the plan than in the process of planning. Dwight
Eisenhower observed:
“In preparing for battle I have always found that plans are useless but planning
is indispensable.”
No battle plan survives the first battle. It will need constant revision as the battle
proceeds. You may have to redesign your airplane while you are in the air. Make sure
that you are not spending more time preparing plans than achieving results. Professor
James Brian Quinn noted:
“A good deal of corporate planning . . . is like a ritual rain dance. It has no effect
on the weather that follows.”
The battle plan is nothing unless it progresses into work. Plan your work and work
your plan. Marketing plans will not produce a dollar of profit if you don’t implement
them. But don’t confuse motion with action. Winning companies are those that do
more of the right things (effectiveness) and do them better (efficiency).
Collection of new data base for feature prospect:-
A business cannot be run only on five or ten clients it needs no. of clients to run the
business for that a company needs large no. of feature prospect to convert them in
over clients before going farter we must know what is marketing by prospecting.
Marketing by Prospecting: -
A system of using marketing tools with prospecting skills. It is a strategy designed
primarily for the small to medium sized business that doesn’t have a large marketing
budget. Also, for divisions within large companies that simply don’t get the big
marketing dollars.
Marketing by Prospecting first involves preparing the variety of marketing tools we
use to grow our business. Then, the means we use to get these marketing tools in front
of our potential customers is prospecting skills.
Because the lines between Marketing and Prospecting tend to blur quickly, why not
just face facts - our Marketing work requires Prospecting skills -hence, marketing by
Prospecting.
By the way, the reverse also has implications here, prospecting by Marketing, but we
will address that somewhat differently, more on that later.
As I have been writing for the last few weeks, our efforts for Prospecting in the
Global Marketplace involve all the tools used in both our marketing and prospecting
programs.
If you have a budget for running TV or mass media campaigns, this material is not for
you.
By Marketing we are trying to get the world to know about the products and services
we offer.
By Prospecting we are trying to reach the individuals in the world who can buy our
products and services.
With small budgets, Marketing by Prospecting can be a very effective use of our
marketing dollars.
The marketing materials tools that we create and use are usually – Flyers, Brochures,
Pamphlets, Newsletters, Websites, and even PowerPoint presentations.
Two additional Marketing by prospecting tools that you should consider are Article
writing and Public Speaking.
Writing articles and having them published is really easy these days with the internet.
Write about the various ways your products and services are being utilized to the
benefit of your customers.
There are dozens of web article submission services that will publish your articles and
provide them to e-zines along with your contact information including your website.
This may be the perfect way to get published, but realize there are 1,000’s of others
doing this, so we aren’t alone in this market. But it does get your name and
information out there. I have had 15 articles published on 6 different submission sites
in the last week and they are popping up all over the place.
I entered my name in Google, and found a lot of my articles listed. I don’t have a feel
yet for what this will generate business wise, but it is another marketing tool and it is
absolutely FREE.
If you are able to get published in the “old style” standard media, newspapers and
magazines I suggest you take advantage of them. I know these take time and effort,
but pursue this route if you like. The web submission can be done right now, so give
both a shot.
Speaking to association meetings, trade show conferences, corporate meetings, and
other events may not be for everybody, but it is a tool I personally really like.
You will need to prepare a speech, of course. Then your marketing materials will
consist of a brief overview of the speech and short bio telling why you are the expert
on this subject they should hear. Then you will need to use your Prospecting skills to
get that one page document into the hands (or onto the computer screen) of the
meeting planner, program chairman, or who ever books the speakers. Start off with
small local groups, maybe ones in which you may be a member. So there you have it,
the idea of Marketing by Prospecting. Hopefully it is something we can all use to
grow our businesses using the tools of both skills.
RESEARCH METHODOLOGY
RESEARCH DESIGN
The study is a descriptive study because it enables the quick assimilation of data.
SAMPLE DESIGN
SAMPLE UNIT: - All companies are from NCR are deal in export & import.
SAMPLE SIZE: - 200 company
SAMPLE REGION: - Delhi NCR region only
SAMPLING PROCEDURE: - Random Sampling
DATA COLLECTION METHOD
PRIMARY DATA:
To know about the logistic and importance for India , How to improve the market
for logistic ,Present conditions are in favor of freight forwarder or export and import
,What kind of services are providing by freight forwarder ,Where India stand in
global world , EDI is really help full in India logistic system or not, Did
computerization is helpful in their tracking system, What are the problem related to
export and import processes, Did new foreign trade policy is helpful or not, Which
mode is selected by the company to export and import, On what basis did exporter
and importer select the freight forwarder agency, What a freight forwarder do to
improve there services What is present scenario export and import in NCR, Number
of shipment and cargo take place by a exporter & importer. Did cargo & shipment
are move through FCL or LCL, to know the number of shipment takes place per
month/year. To know the major destination from over to export and import do
trading
SECONDARY DATA:
Secondary data was collected through magazines, research papers, internet etc.
RESEARCH INTRUMENTS
QUESTIONNAIRE DESIGN:
As the questionnaire is self administrated one, the survey is kept simple and user
friendly. Words used in questionnaire are readily understandable to all respondent.
Also technical jargons are use to ensure that there is no confusion for respondents.
TOOLS AND TECHNIQUES OF ANALYSIS OF DATA
STATISTICAL TOOLS:-
It is very difficult to have detailed knowledge of employees working in PNB. So the
surveyor has taken 20 samples due to limited resources and time factor. The
management ranks are working in different categories of different department. Thus it
becomes equally justified to plan in such a way that it covers all departments.
TOOLS:-
Pie chart
Bar diagram
Text and statements
ANALYSIS OF DATA
1. Are you
Importer-____________Exporter -________ Both -____________
Ans= Importer - 65%, exporter-25%, both-20%
Table no.3
Importer 25%
Exporter 65%
Both 20%
10%30%50%70% Importer;
25%
Exporter; 65%
Both; 20%
Importer Exporter Both
Fig no. 6
Number of exporter is more then the importer and both (importer - exporter).
It show that exporter is more
2. Shipment trough
Sea -____________ Air -_____________ Both-___________
Ans= sea-68%, air – 59%, both -56%.
Table no.4
Sea Air Both
68% 59% 56%
Sea; Series1; 0.68; 37%
Air; Series1; 0.59; 32%
Both; Series1; 0.56; 31%
Chart Title
Sea
Air
Both
fig no. 7
Movement of shipment through Sea is 10% more then the air ways.
The option both and sea have the difference only 3% over all it is less then
only 1% different in option both and air
Sea ways are use for have material/shipments
Q3. Major Destination
Ans= US, Europe, Denmark, California, Canada, Hong Kong, etc.
Fig no. 8
Q4.Did cargo & shipment are move through FCL or LCL
Ans =FCL- 35% , LCL- 65%
Table no.5
FCL LCL
35% 65%
FCLSeries1
35%LCL
Series165%
Chart Title
FCL LCL
Fig no. 9
LCL is 65% which is near doubled to the FCL which only 35%
Every person in this trade don’t use full container lode because
they bock it on there requirement.
This thing show that the government need more concentrate on
this side.
Q5.Type of commodity (Export/Import) –
(a)Raw material _________________________
(b)Sammie finished material__________________
(c)Finished material______________________
In case of export (a)0%, (b)40% , (c)60% ,
Exporter:-
Table no.6
a) Raw material b) Sammie
finished
material
c) Finished
material
0% 40% 60%
Raw material Sammie finished material
Finished material
Series1 0% 40% 60%
5%
15%
25%
35%
45%
55%
65%
Series1; 0%
Series1; 40%
Series1; 60%
Chart Title
Fig no.10
In case of exporter finished material is exported more then 20% in compare
to the Sammie finished material.
Raw material is 0%.
Importer: - In case of import (a) 0% (b) 65 % (c) 35%
Table no.7
d) Raw material e) Sammie finished
material
f) Finished
material
0% 65% 35%
Fig. 11
Raw material Sammie finished material
Finished material0%
10%
20%
30%
40%
50%
60%
70%
Series1; 0%
Series1; 65%
Series1; 35%
Chart Title
Ser...
Sammie finished material is 65% imported in NCR area.
Finished material is around 35% which is near to 40% of Sammie finished
material.
Raw material is 0% which shows that we are independent for raw material
view.
Q6. Name the commodity -_____________________________
Ans=
Computer, lather material, furniture, stabilizers, servo stabilizers, servo
voltage stabilizers, single phase servo voltage stabilizers, three phase servo
voltage stabilizers, air cooled servo voltage stabilizers, step down transformer,
variable transformers.
Computer industry: - UPS systems, industrial UPS systems, voltage
stabilizers, automatic voltage stabilizer. Also available with power
conditioning system, lightning protection systems, surge protection systems
and step switch. Etc. Computer stationery, carbonless paper, plotter rolls,
thermal pos rolls, coated paper, do paper, paper rolls, photo glossy paper,
tracing paper, fax rolls and ammonia paper. All kinds of cables for power
control instrumentation, data thermocouple extension, compensating,
telecommunication, coaxial, computer, defiance cables and cables for
domestic and industrial applications. Printed circuit boards, membrane
keypads, integrated circuits, transducers, sensors etc.
Agricultural industry: - Agricultural machinery like diesel engine, water
supply pipe couplings, zero grazing machinery, sugar cane crusher, crop
thrasher, crop huller, chaff cutter, irrigation pumps and wood working
machinery.
Later materials and footwear industry: - Footwear, leather footwear,
Rajasthani footwear, embroided footwear, embellished footwear, sequin
footwear, thread work footwear, mojri, leather mojri, Rajasthani mojri,
embroided mojri and sequin mojri
Furniture industry: - Garden chairs, other furniture items.
Q7. Number of shipment taking place per month/year.
a) 02-05______ b) 05-10________c) 25-30_________ d) ________
Table no.8
02-05 30%
05-10 2%
25-30 (year ) 80%
5%
15%
25%
35%
45%
55%
65%
75%
85%
30%
2%
80%
Series1 Series2 25-30 (year )
Fig no.12
30% companies are saying that they did (02-05) number of shipment
takes place per month.
2% companies are saying that they did (05-10) number of shipment
takes place per month.
80% companies are saying that they did (25-30) number of shipment
takes place per month.
This thing show that no. of shipment in one month of ( 02-05) is more
then the (05-10).
(25-30) shipments are possible in a year by a company this thing shows
the important of logistic.
Government should try to promote to increases the no. of shipment
(05-10) so that over foreign trade will improve.
Q8.Does time play an important role
Ans =4 rate is high
Table no.9
a) 1 b) 2 c) 3 d) 4 e) 5
0% 25% 45% 60% 18%
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Series1
Series2
Series1; 1
Series1; 2
Series1; 3
Series1; 4
Series1; 5
Series2; 0%Series2; 25%
Series2; 45%Series2; 60%
Series2; 18%
Se...
fig no.13
This shows that time play an important role that why 60% company saying
that on rating scale we give 4 point out of 5 to the logistic time.
To manage the time they use best and cheap way to transpose the shipments.
Some time company has to face the problem and big losses do to delay in
shipments.
Q9. Are you satisfied with present EDI system in your trade –
(a) Yes ___________________________
(b) No____________________________
(c) Cant say________________________
(d) I don’t know about this_____________
Table no.10
(a) Yes 70%
(b) no 8%
(c) Cant say 12%
(d) I don’t know about this 00%
78%
9%
13%
satisfied with present EDI system (a) Yes (b) no(c) Cant say (d) I don’t know about this
Fig no.14
70% company are say are saying that they are satisfied with EDI system,
8% company are saying that no they are not satisfied they want more well manageable
system
12% are saying cant say any thing
Q10. Is the present EDI system helpful in reducing the cost as compared to past
manual system?
(a) Yes ___________________________
(b) No____________________________
(c) Cant say________________________
(d) I don’t know about this____________
Table no.11
(a) Yes 93%
(b) No 2%
(c) Cant say 2%
(d) I don’t know about this 3%
93%
2%2% 3%
Present EDI system reduced the cost I com-pare to past manual system
(a) Yes (b) No(c) Cant say (d) I don’t know about this
Fig no.15
95% companies are saying that yes EDI system save time & money.
2%,2% no or cant say
3% companies are saying they don’t know about this.
Q11. Are you satisfied with present number of counter freight stations (CFS) for
small exporters?
(a) Yes ___________________________
(b) No____________________________
(c) Cant say________________________
(d) It should be increases______________
Table no.12
Yes No Cant say It should be in-creases
Lavel of satisfied with present number counter freight stations (CFS) for small exporters
2% 26% 6% 66%
2%26%
6%
66%
Lavel of satisfied with present number counter freight stations (CFS) for small
exportersLavel of satisfied with present number counter freight stations (CFS) for small ex-porters
(d) 66% company want that CFS must increase because the market is increasing like
any thing it at developing stage only if it doesn’t gat this kind of basic support then it
won’t expand in feature.
(a) gat 2%,(b) gat26%(c)gat6% only
Q12. Are you satisfied with services which is provided on ICD/CFS/ GATWAY to
the exporters & importers –
Give your rating for satisfaction
(a) 1__ (b) 2__ (c) 3__ (d)4__(e)5__
Table no.13
a) 1 b) 2 c) 3 d) 4 e) 5
1% 42% 47% 30% 00%
a) 1 b) 2 c) 3 d) 4 e) 5
0%
10%
20%
30%
40%
50%
1%
43% 47%
30%
0%
Rating for satisfaction which they gat on ICD/CFS/ GATWAY
Rating for satisfaction which they gat on ICD/CFS/ GATWAY
Fig no.16
Highest satisfaction level is (c) 3 that is 47% of total population
43% of total population is saying is saying (b) second satisfaction level
For (d) 30% &(a)1% only
(e) Is highest peak of satisfaction which is zero that prove that maximum
person are not satisfied with the services.
Q13. Problem related to export & import –(a) Custom clearance - _______________
(b) Forms Filing & filing - _____________
(c) Transportation problem-____________
(d) ware house problem-______________
Ans= (a) 50% (b) 90% (c) 60% (d) 10%
Table no.14
Custom clearance
Forms Filing & filing
Transportation problem
Ware house problem
50% 90% 60% 70%
Series1; 0.5; 19%
Series1; 0.9; 33%Series1; 0.600000000000
001; 22%
Series1; 0.700000000000
001; 26%
Chart Title
Custom clearance Forms Filing & filing Transportation problem
Ware house problem
fir no.17
As an over view I find that option (b) Forms Filing & filing is the leading most
problem among the all problem.
At second (d) Ware house problem.
At third (c) Transportation problem.
At fourth (a) Custom clearance.
Q14. Are you using freight Forwarder Company for logistic in export & import and
custom clearance?
(a) No_____________________________
(b) Yes____________________________
(c) Some time_______________________
Table no.15
(a) no (b) yes (c) some time
00% 98% 2%
Fig no.18
98%
2%
Using freight Forwarder Company for logistic in export & import and custom
clearance(a) No (b) Yes ( c ) some time
Yes Company deals in export & import for logistic and custom clearance
appoint the freight Forwarder Company say by 98% of company.
Only 2% companies are saying that some time only they take the help of
freight Forwarder Company.
Q15. Are you satisfied with present freight forwarder company - (yes /No)
Ans= yes satisfied - 72%, not satisfied -33%
yes
no
5% 15% 25% 35% 45% 55% 65% 75%yes no
Series1 72% 33%
yes; Series1; 72%
no; Series1; 33%
Chart Title
Table no.16
72% company are saying that they are satisfied with there company where as
33% are saying are saying that they are not satisfied.
Q16. If no then what are the problem
Ans- major problem – services
Table no.17
Services other
4% 15%
Services other
Series1 4% 15%
1%3%5%7%9%
11%13%15%
Series1; 4%
Series1; 15%Chart Title
Fig no 19
Those company which are not satisfied with there freight forwarder company
the are saying that only 4% company not satisfied with services and 15% are
saying that other regions .
FINDINGS AND CONCLUSIONS
After reviewing the logistic market in I reach to the conclusion that India should
recognize the extraordinary role logistics plays in economic development and in
enhancing the competitiveness of all the three sectors of the economy. Given the
emerging business and technological trends there are possibilities for the adoption of
innovative logistics solutions specifically designed for India? In addition there is a
requirement for an integrated strategy towards developing logistics and IT
infrastructure and also enhancing its industry base. The resources needed for
wholesale development takes enormous amounts of time and resources. A planned
phased approach for Integrated Logistics in needed. Our Theme paper is an attempt at
presenting such an approach.
The success of today’s market leaders such as Wal-Mart, Dell, Cisco and Toyota
is primarily based on their superior operational and logistics capabilities.
Indian logistic in export & import should develop for feature business that is bright
and challenging.
SUGGESTIONS/ RECOMMENDATIONS
After analyzing the project report I conclude that India is developing country. Due to
globalization international business is increasing day by day, as report is saying
logistic in export- import is increasing and to maintain the standard business is the
requirements so that we compete the market ,
Company should develop and increase there organization size to maintain
there services standard.
Company should aware there client related to norms, documentation work
so that the problem related to the form filling can be improved.
Company should adoption of innovative logistics solutions specifically
designed for India.
There is a requirement for an integrated strategy towards developing
logistics and IT infrastructure and also enhancing its industry base.
LIMITATIONS
The Indian logistics industry suffers from inadequate infrastructure, complex tax laws
and insufficient technological aids, which acted as a limitation while conducting the
study.
The Indian logistics market is not sophisticated from an infrastructural and procedural
point of view.
The logistics industry in India is still at a developing stage.
Because of huge potential & less service providers the commitment level plays an
important role in this industry.
The work force in this industry is less educated & not well trained.
Company’s dose not gives time for questionnaire & tries to avoid the answer many
times.
I am having time limitations, money and lack of resources I am not able to collect
information from large number company.
This survey is held in some specific sector company only.
BIBLIOGRAPHY
Books
Logistical Management – Tata McGraw 2000 Edition. Written by Donald.
Bowersox, and David. Closs.
The Management of Business Logistics – 7th Edition: Written by Edward J.
Bardi, C.John Langley, and John Joseph Coyle
Kothari C.R. “Research Methodology” New Age International Publishers
Kotter Philip “Marketing Management” Prentice Hall Of India Private Ltd
Websites
www.cmlworld.com
www.cmlogistic.com/home.htm
http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics
http://www.lintasfreight.com/
www.yahooanswers.com
APPENDIX
QUESTIONNAIRE
Name-______________________________________________________________
Designation -_______________________________________________________
Company name-_______________________________________________________
Type of business-______________________________________________________
Address of company-___________________________________________________
_____________________________________________________________________
Email –_____________________________________________________________
Phone no.-___________________________________________________________
1. Importer-_________ Exporter -___________ Both -____________
2. Sea -____________________ Air ________________ Both-___________
3. Major Destination –
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
______________________________________________________________
4. FCL - __________________ LCL -_________________
5. Type of commodity (Export/Import) –
(a) Row material ______________________________________________
(b) Sammie finished material _______________________________________
(c) Finished material______________________________________________
6. Name the commodity -___________________________________________
_______________________________________________________________
_______________________________________________________________
7. Number of shipment taking place per month/year.
a) 02-05
b) 05-10
c) 25-30
d) ____________________________
8. Does Time play`s an important role in(Export/Import) - ( yes /No)
Give rating as per important (1_2_3_4_5_)
9. Are you satisfied with present EDI system in your trade –
(a) Yes ___________________________
(b) No____________________________
(c)Cant say________________________
(d) I don’t know about this_____________
10. Is the present EDI system helpful in reducing the cost as compared to past
manual system
(a)Yes ___________________________
(b)No____________________________
(c)Cant say________________________
(d)I don’t know about this____________
11. Are you satisfied with present number of counter freight stations(CFS) for
small exporters-
(a) Yes ___________________________
(b) No____________________________
(c) Cant say________________________
(d) It should be increases______________
12. Are you satisfied with services which is provided on ICD/CFS/GATWAY to
the exporters & importers –
Give your rating for satisfaction:-
(a)1__ (b) 2__ (c) 3__ (d)4__(e)5__
13. Problem related to export & import house-
(a) Custom clearance - _______________
(b) Forms Filing & filing - ______________
(c) Transportation problem-____________
(d) Warehousing problem-______________
14. Are you using freight forwarder company in logistic for export & import and
custom Clarence –
(a) No_____________________________
(b) Yes____________________________
(c) Some time_______________________
15. Are you satisfied with present freight forwarder company - ( Yes /No)
16. If no then what are the problem-
(a) Services______________
(b) Other ________________
Response -
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________