cm logistics freight forwarding and international marketing strategies

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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.

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Page 1: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

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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

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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

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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.

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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)

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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

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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

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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

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b) Departments of the Company

MD

OPERATIONAL HEAD

VC & AGM

FINANCE HEADMARKETING HEAD

OPERATION EXECUTIVE

ACCOUNTS EXECUTIVEMARKETING EXECUTIVE

DATA ENTRY OPERATOR

PEON/SECURITY

CLERK

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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

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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

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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.

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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

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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.

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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.

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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.

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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.

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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

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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.

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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

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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.

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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-

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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.

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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.

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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

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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.

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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.

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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:

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“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.

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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.

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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:

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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:-

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Pie chart

Bar diagram

Text and statements

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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

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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

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Q3. Major Destination

Ans= US, Europe, Denmark, California, Canada, Hong Kong, etc.

Fig no. 8

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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.

Page 50: Cm Logistics Freight Forwarding and International Marketing Strategies

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%

Page 51: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 52: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 53: Cm Logistics Freight Forwarding and International Marketing Strategies

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 )

Page 54: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 55: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 56: Cm Logistics Freight Forwarding and International Marketing Strategies

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

Page 57: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 58: Cm Logistics Freight Forwarding and International Marketing Strategies

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

Page 59: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 60: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 61: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 62: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 63: Cm Logistics Freight Forwarding and International Marketing Strategies

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 .

Page 64: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 65: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 66: Cm Logistics Freight Forwarding and International Marketing Strategies

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.

Page 67: Cm Logistics Freight Forwarding and International Marketing Strategies

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

Page 68: Cm Logistics Freight Forwarding and International Marketing Strategies

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 -___________________________________________

_______________________________________________________________

_______________________________________________________________

Page 69: Cm Logistics Freight Forwarding and International Marketing Strategies

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______________

Page 70: Cm Logistics Freight Forwarding and International Marketing Strategies

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 -

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________