effectiveness of logistics management 2013-2014 a
TRANSCRIPT
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CHAPTER -1 INTRODUCTION PAGE NO
1.1 OBJECTIVE OF THE STUDY
1.! RESEARCH "ETHODO#OGY -1$
CHAPTER - ! INDUSTRY PROFI#E
!.1 #OGISTICS INDUSTRY 11-1!
!.! #OGISTICS "ANAGE"ENT % #OGISTICS "ANAGE"ENT
SOFT&ARE 1!- 1'
CHAPTER- ' CO"PANY PROFI#E
'.1 VISION % "ISSION 1(-1)
'.! DC SOFT&ARE FREIGHT % #OGISTGICS SERVICE 1*
'.' CONTINUOUS I"PROVE"ENT IN THE ORGANI+ATION 1*-1,
'.( ORGANI+ATION FUNCTIONS 1,-!
'. ORGANI+ATION STRUCTURE !)
'.) BUSINESS DRIVERS !*
'.* DATA ANA#YSIS % INTERPRETATION !,-(
CHAPTER- ( FINDINGS % SUGGESTIONS
(.1 FINDINGS % SUGGESTIONS ()-(
(.! CONC#USION $
(.' BIB#IOGRAPHY 1
ANNEURE % /UESTIONS !-*
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1.1
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[PROJECT
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PROJECT
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2014
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DC Softwareservice pvt.ltd Draft Cargoways India Private Limited(airmacs !ro"p company#
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APPENDIX-B
BONAFIDE
CERTIFICATE
INSTITUTE OF DISTANCE
EDUCATION
UNIVERSITY OF
MADRAS
Certifte t!at t!i" i" t!e #$%afe Pr$&e't($r) $%e #*
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E%r$/e%t N/#er C17101PL8112
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commonly seen as a branch of engineering which creates (people systems( rather than (machine
systems(....
1.1 OBJECTIVE OF THE STUDY
"he obectives of the 6roect are4
• "o know about Logistics -ndustries
• "o compare the effectiveness of logistics management at 7& %oftware and to benchmark
the organi$ation with respect to the industry.
• "o have a thorough understanding of how logistics and freight industries work.
• "o know whether the customers are satisfied with the e#isting range of service pattern.
1.! RESEARCH "ETHODO#OGY
esearch design is descriptive in network8 both data are used in the study. 6rimary and secondary
character to it. "he primary data was collected through questionnaire method. "he secondary
data were composed through the reference of books, websites, and interviews with various
e#ecutives in different organi$ations of the sample. "he procured data was analy$ed by a simple
percentage method and the results are supported with graphs and charts.
"et7o8 of Data Co99e0to3:
6rimary 7ata4 "he maor tool used was interview with managers and staff of the branch office,
questionnaire was developed focusing various aspect.
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%econdary 7ata4 /ooks of Logistics anagement for literature reference, -nternet :eb 6ortals,
:ebsites of each firm, &ompany /rochures.
Sa6;9e Se9e0to3:
&onvenience sampling is used for study, as the researcher am interested here in getting an
ine#pensive appro#imation of the truth. 2perations of 57& %oftware; <reight = Logistics are
mainly concentrated at large scale AL>?amriya 6ort, 7ubai and having its branch office in
@%A,?ouston,Australia,&hennai,/angalore,"uticorin,cochin,&oimbatore,isakhapatnam,umb
ai,6une,Bolkata, 7elhiC, "he total numbers of logistics organi$ations in and around this port are
D!!! in number, which constitutes the population. %imilar, 1!! organi$ations having maor
operations in the <reight and Logistics have been selected as sample for the survey. "he selection
was based on the sampling said above.
#6tato34 of St<8=:
• A few organi$ations did not publish the e#act values for each question especially in sales
turnover and other similar figures.
• "he study was conducted in the &hennai area only aiming at the main 7ubai &entre and
confined to the freight division of the logistics management.
• &ertain monetary values were not being filled by organi$ations.
• 7ue to organi$ations security reasons documents like /ills, :arehouse /ills, etc could
not be gained.
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• ost of the questionnaire answers were filled over internet email facility8 therefore
contact was through phone and emails.
[C<(PTER 2]
.ndu#tr= Profle
!. #o54t04 I38<4tr=
!.1 #OGISTICS >UAE - "889e Ea4t?
Logistics is the management of the flow of goods, information and other resources, including
energy and people, between the point of origin and the point of consumption in order to meet the
requirements of consumers. Logistics involve the integration of information, transportation,
inventory, warehousing, material>handling and packaging. -n terms of value, global logisticsindustry has been estimated to be more than @%7 EF billion and make up significant part of the
)76 with regard to -ndia. "he iddle 3ast is currently -ndia's top e#port destination for a
burgeoning consumer electronics sector. 3#ports reached G1H million in E!!>!D, an increase of
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9D percent over the previous year, according to the 3lectronics and &omputer %oftware 3#port
6romotion &ouncil *3%&. "he growing trade reciprocity with &hina, DF percent of respondents
to a recent &hina supplier survey, iddle 3ast 3#port I -mport 2pportunities, cited the iddle
3ast as the ne#t (hot( import market for &hinese>manufactured goods.
@A3 is now in a stage of transition from an import substitution closed economy model to an
outward oriented trade regime. "he importance of logistics as an enabler of trade and economic
growth is worth mentioning. assive improvement in infrastructure for transportation leads to
present and future development in trade, resulting in the economic growth of the nation. :hile
around 7h.E!!, billion of investments have been made during last years to augment port
facilities in the country *@A3, equally massive investments have also been made in road
networks. "he logisticsIshippingIfreight sector has received keen attention from both investors
and government.
2n the positive point of view, new opportunities are opening up for the sector. "rade volumes
both overseas and inland are growing very fast. "he pace of growth in the speciali$ed sectors like
Liquid Jatural )as *LJ), &ontainers, )oods, 3lectronic 3quipments etc. are comparatively
much higher. -ntegrated logistics and multimode transportation are opening up new business for
logisticsI shipping companies.
!.! #o54t04 "a3a5e6e3t a38 #o54t04 "a3a5e6e3t Software
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Logistics management is that part of the supply chain which plans, implements and controls the
efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to meet customers'
requirements. A professional working in the field of logistics management is called a logistician.
%oftware is used for automating logistics activities which helps the supply chain industry in
automating the work flow as well as management of the system. ery few generali$ed software
are only available in the new market in the said topology. "his is because there is no common
rule to generali$e the system as well as work flow even though the practice is more or less the
same. ost of the commercial companies do use one or the other custom solution. "here are
various software that are being used within the departments of logistics mainly in &onventional
7epartments and for &ontainer "rucking.
a. B<43e44 #o54t04
Logistics as a business concept evolved only in the 19!s. "his was mainly due to the increasing
comple#ity of supplying one's business with materials and shipping out products in an
increasingly globali$ed supply chain, calling for e#perts in the field who are called %upply &hain
Logisticians. "his can be defined as having the right item in the right quantity at the right time at
the right place for the right price and it is the science of process having its presence in all sectors
of the industry. "he goal of logistics work is to manage the fruition of proect life cycles, supply
chains and resultant efficiencies.
-n business, logistics may have either internal focus *inbound logistics, or e#ternal focus
*outbound logistics covering the flow and storage of materials from point of origin to point of
consumption. "he main functions of a qualified logistician include inventory management,
purchasing, transportation, warehousing, consultation and the organi$ing and planning of these
activities. Logisticians combine the professional knowledge of each of these functions so that
there is a coordination of resources in an organi$ation. "here are two fundamentally different
forms of logistics. 2ne optimi$es a steady flow of material through a network of transport links
and storage nodes. "he other coordinates a sequence of resources to carry out some proect.
@. Pro8<0to3 #o54t04
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"he term is used for describing logistic processes within an industry. "he purpose of production
logistics is to ensure that each machine and workstation is being fed with the right product in the
right quantity and quality at the right point in time.
"he issue is not the transportation itself, but to streamline and control the flow through the value
adding processes and eliminate non>value adding ones. 6roduction logistics can be applied in
e#isting as well as new plants. anufacturing in an e#isting plant is a constantly changing
process. achines are e#changed and new ones added, which gives the opportunity to improve
the production logistics system accordingly. 6roduction logistics provides the means to achieve
customer response and capital efficiency. 6roduction logistics is getting more and more
important with the decreasing batch si$es. 3ven a single customer demand can be fulfilled in an
efficient way. "rack and tracing, which is an essential part of production logistics > due to
product safety and product reliability issues > is also gaining importance especially in theautomotive and the medical industry.
[C<(PTER >]
Com?an= Profle
&7e3 t 0o6e4 to 4<;;9= 07a3 6a3a5e6e3t t7e a34wer 4:
“Leadership, Innovation and Quality Solutions”
:hat DC Software Ser20e P2t.#t8 does4
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• Fre57t "o2e6e3t
• Car5o Fre57t "a3a5e6e3t So9<to34
• F<99 Tr<09oa8 % So9<to3 Pro28er4
• Co3tra0t Pa0a535 % Ot7er Ser20e4
• &are7o<4e O;erato34 >O<t4o<r0e8? a38
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• #o54t04 'P#
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DC Fre57t % #o54t04: Be4t Peo;9e Be4t Pro0e44 Be4t Va9<e.
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'.1 V4o3 % "44o3:
a. V4o3
"o become a leading freight, transportation, clearing and logistics company in the iddle
3ast. "o be the recogni$ed industry leader, through total commitment to customer service, by
maintaining our uncompromising integrity, in the support and development of our 6eople,
&ommunications and %ystems in sustained growth and profitability, "he vision > to build an
integrated world of services that provides absolute customer satisfaction
@. "44o3
"o set the standard for e#cellence in global logistics through total commitment to quality in
people and customer service, with superior financial results. "o solve reliable transportation and
logistics services to the needs of the business community. eliable services means on>time
delivery, undamaged goods, and correct documentation in case of deviations. "o perform
continuous business improvement in order to meet and e#ceed customer e#pectation, "o create
sustainable business growth in order to enhance the prosperity of employee and benefit
shareholders.
7ecisions can impact the success of the company as much as the performance of the supply
chain. Jo matter what industry or region of the world other organi$ation do business in, the
supply chain is an integral part to the success as same as the products, the services, and the
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people. "he <airmacs )roup of &ompanies was founded in 19D. 7& %oftware %ervice 6vt.Ltd
was formed to build on the global distribution e#perience to help other companies lower
distribution costs while improving customer service and brand loyalty.
7& %oftware> <reight and Logistics is a technology>based company providing customi$ed
solutions that transform distribution to a source of competitive advantage. ain motive is to
provide integrated solutions from managing transportation, inventory, and distribution centers to
sophisticated forecasting, information management, and network consulting services. "oday,
7& %oftware Logistics serves more than F client companies, globally, in an array of different
market sectors.
"he organi$ation mission is to provide best value, integrated freight forwarding and logistics
solutions to clients in time>sensitive, service>critical businesses. 2rgani$ation tries to leverage
and continuously improve the capabilities. 2ur clients trust us and depend on our /est 6eopleand /est 6rocesses to help them succeed.
'.! DC Software- Fre57t Forwar835 a38 #o54t04 Ser20e :
"oday, 7& employ many professionals in their branch offices and in fields *6orts, dedicated to
helping freight, transportation, clearing, forwarding and logistics needs. Koung, energetic,
professional, and passionate4 their humble beginnings, satisfying customer needs has been the
driving force behind every 7& %oftware employee. 7& provide these services around globally
and main focus to @A3 and -ndian markets
7& <reight and Logistics, focus on main areas they are4
a. &ustomer service to a higher level.
b. 6artnering to seeking the right answers.
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c. <inding solutions that optimi$e cost and service.
d. And always asking, how can we serve you better
e. Analy$ing every opportunity, every challenge to provide a custom solution that works best forcustomer.
'.' Co3t3<o<4 I6;ro2e6e3t 3 t7e Or5a3ato3
7& Logistics employees and other contracting people and other e#ceptional people are the
cornerstone of organi$ations service, they are e#perts in their fields. 3nergetic, always looking
for ways to drive cost out of the supply chain and all the while working to improve the service.
-nitially from the beginning, organi$ation has hired only the best and brightest. "he most
committed. 3very member of the team is empowered to create and implement client>centered
solutions. 7eploying the management team regionally means decision>making and is kept local,
on>the>scene. "he team structure means good ideas can come from anywhere within the
company.
a. C<4to6er4 3ee8 4o9<to34 3ow. DC Fre57t a38 #o54t04 5et t7e6 o3
t7at 6o6e3t.
:ith world>class technology as the backbone of the solutions and service. -ntegrating
systems and providing real>time information to help reduce cost by moving the productsof customers to market as efficiently as possible. 2rgani$ations 5&an 7o; culture is
rooted in customer service, fle#ibility and innovation. -ts been that way since the 7&
<reight and Logistics organi$ation was launched over years ago. 2rgani$ation has got a
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rich tradition of redefining service for the supply chain management, freight management
and logistics industry. "his commitment to quality customer service led 7& <reight and
Logistics to become the third>party logistics provider to be certified by @A3 as best
system standards. "oday, the Muality anagement %ystem not only serves as the
foundation of the on>going &ontinuous -mprovement in day>to>day procedures, it also
serves as the cornerstone of the 7& <reight and Logistics. "he process driven approach to
problem>solving helps the organi$ation e#ceed customers' e#pectations, as the
organi$ation helps tackle service and cost issues within their supply chains.
'.( Or5a3ato3 F<30to34:
a. Fre57t Forwar835
7epartments typically arrange cargo movements to an international destination. "his department
has the e#pertise that allows them to prepare and process the documentation and perform related
activities pertaining to international shipments. A freight forwarder organi$es the safe efficient
movement of goods on behalf of an e#porter, importer or another company or person, sometimes
including dealing with packing and storage. "aking into account the type of goods and the
customers delivery requirements, freight forwarder array, the best means of transport, using the
services of shipping lines, airlines or road and rail freight *-ndian arkets operators.
F<30to34:
i. esearching and planning the most appropriate route for a shipment. "aking account of
the perishable or ha$ardous nature of the goods, cost transit time and security.ii. Arranging appropriate packing. "aking account of climate, climate, terrain, weight,
nature of goods and cost, delivery or warehousing of goods at their final destination.
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iii. 2btaining, checking and preparing documentation to meet customs, e#cise and insurance
requirements, packing specifications and compliance with overseas countries regulations
and fiscal regimes.
iv. 2ffering consolidation services by air, sea, and road.
o 3nsuring cost effective and secure solutions to small shippers with sufficient cargo to
utili$e their own dedicated units.
o Liaising with third parties to move goods by road, air or sea in accordance with
customer requirements.
o Arranging insurance and assisting the client in the event of a claim.
o Arranging payment of freight and other charges or collection of payment on behalf of
the client.
o "ransmitting data by internet and satellite systems, enabling real time tracking and
tracing of goods.
o Arranging charters for large volumes out of gauge or proect movements by air and
sea.
o Acting as broker in customs negotiations worldwide to guide the freight efficiently
through comple# procedures
o Arranging courier and specialist hand carry services
o aintaining visibility and control through all phases of the ourney, including the production of management reports and statistical and unit cost analysis
o Acting as consultant in customs
o aintaining current knowledge of relevant legislation, political situations and other
factors that could affect the movement of freight
o At more senior level, the role may also involve managing staff and overseeing
activities within a department or speciali$ing in a particular area, such as sea freight
or air freight.
@. #o54t04 Fe98: B<9 O;erato34:
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"he main function in this department includes identifying the customers and collecting
information about the amount of material to be e#ported, the product, place of e#ports. "he
department also undertakes cargo booking, provides information on the rates, the schedules, the
arrival, departure time, name of the ship, transshipment details and does the follow up.
F<30to34:
i. -dentifying the customers by the marketing person of this department.
ii. &onvincing the shipper of the services that company provides to be better than the other
shipping service providers.
iii. 3nquire about the place or commonly referred to as the destination port to which the
shipper would like to e#port the cargo.
iv. 3nquire about the type and quantity of the cargo, that he would like to e#port.
v. "he type of container and the number of containers that the shipper would like to take.
vi. Analy$ing the rate the shipper e#pects from his cargo movement .
vii. -nforming the shipper the rate and negotiating with him.
viii.%cheduling the arrival and department time of the vesseli#. Listing out the transshipment details and do the follow up.
0. C9ear35 a38 Forwar835 >C % F?
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"he main function of &=< department is to undertake the customs formalities on behalf of the
e#porters or importers. "he documentation process and clearing activities are done by this
department.
F<30to34:
i. 6reparation of various kinds of bill of entry and shipping bill.
ii. Arrival and clearance of vessels.
iii. 7etermination of value for assessment.
iv. &onversion of currency.
v. Jature and description of documents to be filed with kinds of bills of
entry = shipping bill.
vi. 6rocedures for assessment and payment of duties.
vii. 3#amination of merchandi$e at the customs stations.
viii. 6rohibitions on imports and e#ports items.i#. e>importation and conditions for free re>entry.
#. &heck offences under the act
#i. efund procedures, appeals and revision petitions.
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8. Networ De453
A Logistics Jetwork 7esign initiative is a strategic analysis of entire supply chain.
%ome of the strategic questions are4
• "o ensure enough facilities to meet future capacity requirements
• :hich facilities should be closed andIor consolidated
• -s there an opportunity to make changes to the network to reduce logistics costs
De2e9o; t7e C<rre3t F3a30a9 "o8e9:
/efore making sensible decisions on what changes to make the network, a 0base case financial
model needs to be developed. -t should include the costs of all logistical activities such as
:arehouse costs, "ransportation costs, -nventory costs and 2rder 6rocessing costs.
Software Se9e0to3:
7ue to the comple#ity of this analysis, a network optimi$ation software package is in order. "he
software selection phase may be completed concurrently with the financial model>building phase
above. 2ne person on the proect team should be responsible for sourcing the right software to
meet the proects modeling needs.
Data Gat7er35 % Va98ato3:
"his is one of the key drivers to a successful proect. -t is imperative that the data from your
current data warehouse *transactional data be accurate. <or e#ample, when an item is received
into the warehouse, are the correct product characteristics captured accurately %ome
characteristics of interest would be cube, weight, carton dimension, ha$ardous materials, etc.
2ne of the activities further into the proect will be to create a summary of the product flows.
"his is accomplished by creating family groupings of products. -f the data is not 0clean the flows
will be misrepresented and this will affect the accuracy of the model.
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A3a9=e C<rre3t State of O;erato34:
A throughput and capacity analysis should be completed for the e#isting operations. "his will
help determine if there is additional capacity in the e#isting facilities or if there is e#cess capacity
available. "his will help develop the 0scenarios later on. "he impact to the other logistical
operations may then be identified.
e. &are7o<435
A warehouse is a commercial building for storage of goods. :arehouses are commonly used by
manufacturers, importers, e#porters, wholesalers, transport businesses, customs, etc. "hey are
usually large plain buildings in industrial areas of cities and towns. "hey come equipped with
loading docks to load and unload trucks8 or sometimes are loaded directly from railways,
airports, or seaports. "hey also often have cranes and forklifts for moving goods, which are
usually placed on -%2 standard pallets loaded into pallet racks.
ost warehouses are completely automated, with no workers working inside. "he pallets and
product are moved with a system of automated conveyors and automated storage and retrieval
machines coordinated by programmable logic controllers and computers running logistics
automation software. "hese systems are often installed in refrigerated warehouses where
temperatures are kept very cold to keep the product from spoiling, and also where land is
e#pensive, as automated storage systems can use vertical space efficiently. "hese high>bay
storage areas are often more than 1! meters high, with some over E! meters high.
"he direction and tracking of materials in the warehouse is coordinated by the :%, or
:arehouse anagement %ystem, a database driven computer program. "he :% is used by
logistics personnel to improve the efficiency of the warehouse by directing putaways and to
maintain accurate inventory by recording warehouse transactions.
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odern warehouses are also used at large by e#portersImanufacturers as a point of developingretail outlets in a particular region or country. "his concept reduces the end cost of the product to
the consumer and thus enhance the production sale ratio. :arehousing is an age old concept
which can be used as sharp tool by original manufacturers to reach out directly to consumers
leaving aside or bypassing importers or any other middle agencies or person.
"he :arehouse are to be well guarded with safety provisions to counter pilferage, fire, floods =
other calamities. "he :arehouses are in convenient locations = well connected by roads to
facilitate on time delivery to customers.
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f. Cro448o035 Co3ta3erato3
&rossdocking is a practice of logistics of unloading materials from an incoming semi trailer truck
and loading these materials to outbound trailers or rail cars, with little or no storage in between.
"his may be done to change type of conveyance, or to sort materials intended for different
destinations or to combine material from different origin.
An increasing popular method of shipment is containeri$ation. A container is a large bo# made of
durable material such as steel, aluminum, plywood and reinforced plastics. A container varies in
si$e material and construction. -ts dimension is typically N foot high and N foot wide lengths
usually varying. A container can accommodate most cargo but is most suitable to packages of
standard si$e and shape. &ontainers can take case of most of O main packing problems. /ecause
of container construction, a product does not have to have heavy packaging, it gives protection
against4
. Breaa5e
. "o4t<re
. Te6;erat<re 0o3tro99e8
2. P9fera5e a38 T7eft
T7ere are 6a39= ! t=;e4 of 0o3ta3er4
2. Dr= Co3ta3er4
2. S;e0a9 P<r;o4e Co3ta3er4
T=;e4 Se
!$ Foot Dr=
($ Foot Dr=
( Foot Dr=
2. O;e3 to; 0o3ta3er4
2. F9at ra0 for o2er 4e8 0ar5o
. ($ foot refr5erate8 0o3ta3er4 reefer4
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. H57 0<@e 0o3ta3er4 >($ foot ( foot % Reefer4?
'. Or5a3ato3 Str<0t<re
2rgani$ation is headed by 2rgani$ation ?ead, and all other employees report to him. <irm
comprises of 1E employees for internal works and other team for activities including freight
forwarding, logistics, clearing and forwarding. 2rgani$ation acts as a F6L for other firms on
behalf of carryI forward, logistics. :arehouse activities are being outsourced based on the
demand situations, as goods are being stocked in different warehouses, and is based on thecustomer requirements.
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'.) B<43e44 Dr2er4
"he following are the business drivers in logistical operation4
a? Co4t Dr2er4:
"he average materials moved by manufacturers to e#port market is low, but where as to
import market is high in figure. "he high technology portion reaches to D!P to HEP of
imports. Jumber of labour hours is a factor, tonnage of imports8 si$e of inventory,
number of suppliers, number of batches, number of employees etc. are all maor concern
in cost. 7& <reight and Logistics keep a maor favourable concern on the above, as from
the basic get>together of employees during the off peak hours in work. - was able to
figure out, employees were not happy with their present situations in office and in the
working hours. "he situation has a maor impact in operational stability. "he situation
leads to lengtheningIof delivery bills and other maor invoice forms. As to managers
words, it is deciphered that situations are improving day by day. /y using Activity /ased
&osting *A/& method of costing the organi$ation can identify unprofitable warehouse
practices, other cost measures in logistics. -f 7& <reight and Logistics implement cost
based on A/&, the firm can improve and eliminate unprofitable situations, improve and
implement new facilities with much broader focus on future. "o any organi$ation cost
reduction is the ultimate method to get a much wider profit. As with the help of
questionnaires and through formal interviews with officials not many organi$ations have
this generally. All organi$ations will be implementing the cost method within the near
future.
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'.* Data A3a9=44 a38 I3ter;retato3:
"he data collected through the questionnaire are analy$ed to know about the respondents
opinions about various particulars asked in the questionnaire. "he data collected from the
questionnaire was entered into spread sheet and the data has been interpreted. "he questionnaire
comprises of fourteen questions with subparts for each.
"he topics covered are with decisions of each operational area, employee numbers of each firm,
profitable area in operation, catering location, service offering, organi$ational effectiveness,
inventory, location, product availability and customer satisfaction.
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a? &707 are t7e 9o54t04 4er20e4 or5a3ato34 offer4
Ta@9e -1 Ser20e Offer
S9. No. Ser20e N<6@er4
1 Fre57t 1$$
E :arehousing N9
F &rossdocking NN
O Jetwork 7esign DD
Va9<e A8835 Ser20e4 ,
C7art-1 Ser20e Offer
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"he pie chart above shows the service offer of each organi$ation. "he chart shows that 1!!
Jumbers of the respondents provide freight service and almost 9! Jumbers provide
:arehousing and &rossdocking. 2nly DD Jumbers were providing service of Jetwork
7esign. 2ther service includes value adding, which represents 9N Jumbers of the sample. -t
includes packaging, labeling etc.
@? O;erat35 wt7 ot7er 9o54t0a9 ;ro28er4 a38 rea4o34 for 8e04o34.
Ta@9e -! O;erate &t7 #o54t0a9 Pro28er4
Sr. No. De04o34 Per0e3ta5e
1 2perational %tability 11
E &ost 3ffectiveness 1!
F &ustomer Jeeds FD
( Ot7er )
C7art-! O;erate &t7 #o54t0a9 Pro28er4
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"he pie chart above shows the operational decisions and reasons for operations with other
logistical providers. "he chart shows that 9DP of the respondents operate with other service
providers for different reasons like coordination, clearance, bulk operations etc. Almost FDP
have operations with other providers as per customer needs. 2nly 11P and 1! P were providing
service along with other providers for the purpose of operational stability and cost effectiveness
respectively. -t is stated that 9DP of organi$ations operate with other logistical providers and
remaining OP as standalone.
0? &7at 4 t7e 6o8e of 8e04o34 re5ar835 t7e o;erato34
Ta@9e-' "o8e of De04o3
S9.
No.
O;erato3a9 De04o3 Per0e3ta5e
1 %trategic FH
! Ta0t0a9 ,,
F 2perational DF
C7art-' "o8e of De04o3
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"he pie chart above shows the mode of decisions regarding the operations. "he pie chart shows
NNP of organi$ations take tactical decisions followed by DFP with operational decisions and
FHP strategic decisions. ost of the organi$ations have a mi#ture of all the decisions in their day
to day as well as in long and short term plans.
8? &707 4 t7e area of t7e a0t2t= t7at or5a3ato34 fee9 @e4t 3 t7er 4er20e
Ta@9e-( Be4t A0t2t=
S9. No. Ser20e Per0e3ta5e
1 Fre57t ,
E :arehousing ND
F &rossdocking NH
( Networ De453 (
alue Adding 9H
C7art -( Be4t A0t2t=
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"he pie chart above shows the best activity which organi$ation feels in their operations. "he pie
chart shows 9NP of organi$ations have freight in the predominant area, followed by NDP of
warehousing. Another significant area is &rossdocking with NHP as best activity. "here is only a
minor activity based on network design with OP in pie graph. ost of the organi$ations have a
mi#ture of all the activities in their day to day and 9HP of organi$ation says other activities bring
in more revenue and the best of their activities, which includes packaging, labeling etc.
e? N<6@er of e6;9o=ee4 3 ea07 t=;e of t7e 4er20e re38ere8 of t7e or5a3ato34
Ta@9e- E6;9o=ee4S9.
No.
De;art6e3t4 I3 Or5a3ato34 N<6@er of
Peo;9e 3 Ea07
Per0e3ta5e
1 "op anagement OE 11
E 2perations ODN 11
F Accounts I <inance O1 11
O arketing 1H 1F
H<6a3 Re4o<r0e '*1 $
) Do0<6e3tato3 Ot7er4 1,(* (
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Ta@9e-E6;9o=ee4 of @ot7.
C7art- E6;9o=ee4
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"he line charts above shows the comparison of employees in each functional division of
organi$ation with 7& <reight and Logistics. "he line chart shows around 1O percentages of
people belong to top management and industry standards has 11 percent, followed by 1NP for
operations and industry standards has 11P. ?uman esource has to be enhanced and need to be
further improved or need to start in the organi$ation. 7ocumentation also needs to be further
strengthened. arketing comprises of 1OP working in the said area. ost of the organi$ations
have a mi#ture of top management with marketing in their activities and functional area. ?uman
esource comprises of FH1 people and other main area is documentation and workers in the
areas of loading, operational area. "his comprises of only FDP and industry standards are of
OP.
f? &7at are t7e 9o0ato34 to w707 t7e 0o6;a3= 0ater4 to
Ta@9e- ) Cater35 #o0ato34
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7& <reight =Logistics <=L
3mployees
6ercentage
To;
"a3a5e6
e3t
O;erat
o34
A00.F3a
30e
"aret
35
H
R
Do0<6e
3tato3
Ot7er4
1O 1N 1N 1O ! FD
2ther 2rgani$ation3mployees P
11 11 11 1F 9 O
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S9. No. Cater35 #o0ato34 Per0e3ta5e
1 Asia 1!!
! E<ro;e )
F @%A N9
O Australia ND Afr0a *1
D ussia 9N
H iddle 3ast 9N
N 2ther 9!
C7art- ) Cater35 #o0ato34
Ta@9e ) Cater35 #o0ato34
(#ia Euro?e
8S( (u#tralia
(ri*a Ru##ia
&E Ot!er
i%ta"Freig!t 100 0 100 100 0 100 100 100Ot!er 100 : B 6 ;1 B B B0
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Orga%i<ati$%"
C7art ) Cater35 #o0ato34
"he pie chart above shows each organi$ations catering location in the world. "he chart shows
1!!P of organi$ations cater to Asian region followed by DP to 3urope and N9 P to @%A. 3ach
organi$ation has tremendous catering locations with NDP to Australia, H1P to Africa, 9NP to
ussia, 9NP to iddle 3ast, and 9! P to other locations. Locations mentioned as other is
company catering frequently with repeat orders of customers. &hart Dii shows Lintas <reight and
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Logistics can enter 3uropean markets and other favourable market is Africa. "his can be looked
into very seriously in future business.
5? &707 824o3 of 9o54t0a9 a0t2t= ear34 t7e 6a6<6 rate of ;roft for ea07
or5a3ato3 o3 a 40a9e of 1-1$ a38 o2era99 ;roft of ea07 or5a3ato3
Ta@9e-* -"a6<6 Rate of Proft
>DC Fre57t % #o54t04 F%# Co6;are8 wt7 I38<4tr= A2era5e?
6rofit %cale *1 > 1!Fre57t &are7o<
435Cro448o035
NetworDe453
Ot7er
7& <reight = Logistics<=L 6rofit %cale O ! D
-ndustrial 6rofit Average * D.O1 D
C7art-* - "a6<6 Rate of I38<4tra9 Proft A2era5e
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Ta@9e-* Proft of Or5a3ato3 >A99 Ser20e4 Co6@3e8?
C F@,.ndu#tr=
Standard#Proft ,e+el inPer*enta%e 1> 1A/>B
C7art - * Proft of Or5a3ato3 >A99 Ser20e4 Co6@3e8?
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"he bar chart shows each organi$ations ma#imum rate of profit in each area on scale of 1>1!,where 1 denotes least profit and 1! denotes the service that fetches e#cellent profit. "he chart
shows 7& <=L has ample amount of profit in <reight area followed by &rossdocking and other
value adding activities with 9 and D in scale. "he chart Hi shows industry average value is H for
freight followed by D.O1 for warehousing. -t is inferred that freight is giving ample amount of
profit and &ross>7ocking, 2ther including labeling and packaging has industry standards. "he
chart Hii shows profit percentages said by each organi$ation. :e can infer that overall profit
percentage for 7& <=L has E.F9 percentages lesser compared to industry average. "he
organi$ation should implement more strategies to reach industry mark.
7? Co6;ar4o3 of 4er20e offere8 @= DC F%# a38 rat35 of ot7er or5a3ato3 3 t7e
38<4tr= o3 a 40a9e of $- (.
Ta@9e-, Ser20e Co6;ar4o3 >S0a9e $-(?
Ea4e of Ser20e
C9e3tHa38935
C<4to6erSer20e
&e@4te E6;9o=eeEff0e30=
DC F%# ' ( ( ! '
I38<4tr= A2era5e '.,( '.*) '.,! '.! '.,'
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C7art-, Ser20e Co6;ar4o3
"he chart shows 3ase of %ervice is not up to the mark, it shows only F for 7& <=L and the
industry standards is F.NO. %o organi$ation can increase their 3ase of %ervice. &lient handling
is satisfactory compared with industry standards. &ustomer service also has remarkable value
compared with industry. aor area to look into is :ebsite easiness, 3mployee 3fficiency. -t
can be brought up with a considerable effort by proper handling of human activities by
?uman esource 7epartment.
? &7at 4 t7e 453f0a3t 9ea8-t6e for ea07 4er20e re38ere8 wt7 ;re2o<4 =ear4 8ata
of ea07 or5a3ato3
Ta@9e #ea8 T6e 3 Da=4
EAD TIME INDAYS9T:
Fre57t #T &are7o<435 #T
Cro448o035 #T
Networ De453 #T
Ot7er#T
7& <=L !1 !$ F! ! E1
-ndustry Average !' !! EO 1! EO
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C7art #ea8 T6e 3 Da=4
"he above chart shows the service e#ecuted last year in logistics area and the significant lead>
time of each area. "he chart shows O1EE numbers of freight service obs has been e#ecuted with
average lead>time of E1 days. %imilarly warehousing obs with EEO and lead>time of EE days.
:hile comparing with industry standards <reight is dominating and similarly the main lucrative
area is other *6ackaging, Labeling etc., which has NFF in number and E1 days lead>time.
2rgani$ations lead>time is e#cellent e#cept for &rossdocking. <ocus should be to reduce lead>
time and increase more service.
? A2era5e e9a;4e8 t6e @etwee3 or8er re0e235 a38 8e92er= of t7e 4er20e
>I32e3tor=?.
Ta@9e-11 E9a;4e8 T6e
DC F%# I38<4tr= Sta38ar84
E9a;4e8 T6e ' ).
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C7art- 11 E9a;4e8 T6e
"he above chart shows the physical verification check and average elapsed time between order
receiving and delivery of the service. "he chart shows N9P of organi$ations have physical
verification. Average elapsed time between order receiving and delivery of service has an
average of D.9 days. "he total value of elapsed time is D1F days for N9 organi$ations, hence the
average days are D.9 as e#plained in the figure for -ndustry average. 7& elapsed time is
remarkable compared to industry standards.
? &ere t7ere a3= 47orta5e e0e44 of 4to04 3ote8 3 t7e 9a4t 2erf0ato3 8o3e
Ta@9e -1! I32e3tor= S7orta5e
DC F%# I38<4tr=
-nventory%hort 1E 19.N
C7art-1! I32e3tor= S7orta5e
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Ta@9e- 1! I32e3tor= E0e44
DC F%# I38<4tr=
I32e3tor=
E0e44 $ (.,
C7art-1! I32e3tor= E0e44
"he above charts show the -nventory E0e44 a38 S7orta5e faced by organi$ation during
verification. -t is evident that shortage faced by 7& <=L is less compared to industry standards8
there is a difference of N. Another aspect is regarding the e#cess of inventory8 in this scenario,
7& <=L has a remarkable lead with comparison to industry.
9? A2era5e 3<6@er of 0<4to6er 0o6;9a3t4 5e3erate8 a38 38<4tr= a2era5e.
Ta@9e- 1( Co6;9a3t4 >DC wt7 I38<4tr= A2era5e?
DC F%# I38<4tr= A2era5e
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Co6;9a3t4 Ge3erate8 #a4t
Year
!$ 1*.*1
C7art 1( Co6;9a3t4 >DC wt7 I38<4tr= A2era5e?
"he above chart shows average number of complaints. "he complaints for 7& <=L is E9! and
whereas to industry average is around 1N! in number. ?ence organi$ation should try to reduce
the complaints arising. "his can be achieved by increasing new modern methods and facilities to
customers. 2rgani$ation need to heavily focus onto the issue to reduce number of complaints
arising in operations, customer satisfaction and other similar areas.
6? How 8oe4 t7e or5a3ato3 fo99ow <; to reta3 0<4to6er4.
Ta@9e-1 C<4to6er Rete3to3
S9. No. Ser20e Rat35
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1 &ustomer &omplaints given preference 1!!
E 6hone 1!!
F %ervice -ntimation 1!!
O )ifts F
3mail 1!!D <a# 11
H 2ther 1!!
C7art-1 C<4to6er Rete3to3
"he above chart shows preference of complaints and how organi$ation follow up to retain
customers. -ts been noted that cent percent of organi$ation follow up with customers for
customer complaints. ost of the preferable methods for contacting customers for new service
intimation and customer realtionship are telephone, email and other methods like marketing I
sales, customer office visit with 1!! rating. "he least preferred are gifts and fa# with F and 11 in
rating.
3? Doe4 t7e or5a3ato3 7a4 ;ro;er 4=4te6 for 7a38935 0<4to6er 7a38935 a38 8oe4
0<4to6er 3ow w7o6 to 0o3ta0t w7e3 a ;ro@9e6 ar4e4 a40erta3 t7e 9e2e9 of
4at4fa0to3 fee8@a0 @= 0<4to6er a38 4 0<4to6er 4<55e4to3 52e3 ;refere30e 3
t7e or5a3ato3
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Ta@9e- 1) Pro;er S=4te6
S9 No. Ser20e Rat35
1 6roper %ystem 1!!
E &ustomer Bnow 1!!
F &ontact :hom 9O
O &ustomer <eedback NN
&ustomer %uggestion NF
C7art-1) Pro;er S=4te6
"he above chart shows all organi$ation in sample has propers system for handling customer
complaints. -ts been revealed that 1!!P from sample, customers know the sytem of handling
customer complaints in the firm. :hom to contact in case of complaints is having rating of 9O.
&ustomer feedback and customer suggestion is having rating of NN and NF respectively.
[C<(PTER 4]
4/1 Findin%# and Su%%e#tion#
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F38354
? "he quality of service as rated is above average in the case of 7& <reight = Logistics
compared to industry. /ut the organi$ation should continuously try to improve the
quality aspect as is being done by other players in the field. "his is quite a necessity
as otherwise the figures may fall down. &ontinuous improvement is a must so that the
customers will prefer 7& <reight = Logistics as their first choice in Logistics and
<reight industry category. "his can be achieved with more modern equipments and
proper guidance to employees and the rating can go high to e#cellent service.
? 6ricing of service is satisfactory, which organi$ation can further enhance with proper
management. 6resent employee strength is satisfactory compared to other
organi$ation but more focus should be made to documentation areas where the firm
has lesser employees compared to other organi$ations.
? Jetwork 7esign is an area that the organi$ation should not start immediately due to
low rate of returns is recorded as the industrial average. 7esign of new warehouse
areas and proper allocation of work with more sophisticated software facility can be
done through outsourced way during implementation.
2? 7ecision making is e#cellent for organi$ation with respect to other organi$ation in the
industry.
2? 2peration with other logistical providers should be given more preference to achieve
cost effectiveness.
2? earrangement of employees may be a better solution. 7own si$ing of personnel in
the <inance and Accounts section and deploying them for the ? function separately
is recommended.
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2? "he organi$ation client handling, ease of service and customer service is having
remarkable difference from the industry standards. "he main focus need to be on the
ease of website and employee efficiency. <rom the data we can infer that areas which
need to be improved are :ebsite and employee efficiency. 3mployee efficiency can
be improved with a proper ?uman esource department.
2? %ervice offer presently has good impact with other organi$ations service offers. "he
remarkable areas are <reight, &rossdocking, and alue Adding. &ompany can further
enhance operations of alue Adding through proper methods.
? As logistics industry is concerned <reight is the dominant service followed by
:arehousing and &ross>7ocking. Another important area where organi$ations feels
very lucrative is alue Adding .
? -t is observed that most of the organi$ations operate with other logistical providers.
9DP of organi$ations are doing it and remaining OP organi$ations stays independent.
-t is inferred that for efficient logistical activity, support from other organi$ations is
essential.
? "actical decisions are mostly followed by organi$ations followed by operational and a
few strategical.
? <reight and alue Adding is considered to be the best service which organi$ations
offer in industry. Another maor observation is about Jetwork 7esign, it has low
value and no organi$ation feels it to be lucrative area in industry.
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? 2rgani$ation can enhance operations to 3uropean areas and another maor favourable
area is Africa. <rom data 7& can get good market share if they cater to African
regions.
2? 2rgani$ation profit is good compared to industry standards for freight and can further
work on warehousing. "his shows a difference of E points from industry standards.
:hereas for &ross 7ocking it shows same as to industry standards.
2? &ommenting on ease of service, website and employee efficiency, the organi$ation
needs to further improve.
2? <reight %ervice when compared with other industry freight service has got more
value. :arehousing has a difference of F! and is negligible but &ross>7ocking need
to be reviewed. Another favourable area as mentioned earlier is alue Adding and it
shows a difference of OOH works done compared to industry standards.
2? <rom the observation N9 organi$ations have inventory verification. "he lowest
observed days for elapsed time for 7& %oftware <reight = Logistics <=L are F days
and industry standards with D.9 days. ?ence it is a remarkable value for 7& %oftware
<reight = Logistics <=L.
2? -n the sample taken only a few organi$ations has inventory short and e#cess. alues
are 119 and E9 for shortage and e#cess. 7& %oftware <reight = Logistics <=L had
shortage, but no e#cess in inventory and while comparing with industry 7& <reight =
Logistics <=L have remarkable value.
? "he efficient methods for retaining customers are 6hone, 3mail, %ales Agents and
least preferred methods are <a# and )ifts.
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S<55e4to34
? 2rgani$ation can further strenghten the employee strength in the documentationdepartment. "his can lead to further rapidity for operations.
? 2rgani$ation can initiate ?uman esource 7epartment to further enhance
employee motivation. "his will have favourable impact for the operational as well as
total strenghtening of organi$ation
? 7ecision making is quite effective and can be followed for future operations
2? 2perations with other logistical providers need to be enhanced further for
operational effectiveness, more focus should be given to customer delight and cost
effectiveness.
2? Muality of service can be further enhanced to increase customer delight.
2? &lient handling and service need to be followed in the same way and can be
further enhanced with more support. "his can be achieved by proper guiding of
employees and other workers in the logistical area
2? 7& <reight = Logistics can enter other markets in the iddle 3ast especially to
%audi Arabia where the potential of market is very high for Logistics industries and
can even diversify to other areas in logistics.
2? 7& <reight = Logistics can focus to African regions for freight handling, as from the
data the potential market is high for those regions
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(.! Co309<4o3:
"he universe everyday is witnessing unimaginable growth in maority of the industries. "he
logistics and freight industry is one such industry that is rapidly growing. :orldwide logistics
industry is distinguished by fast technological advances and is growing rapidly than most other
industries over the past years. :ith stiff competition around, the company is likely to reduce the
profitability but with proper management of operations and by proper customer desired services
and also effectively utili$ing its alliances it can maintain and improve the performance. Qoint
operational ventures for developing the customi$ed services for its steady growth. "he
organi$ation has enormous opportunities to grow beyond the e#pectations.
7& <reight = Logistics has come a long way from being ust a service provider. "he
organi$ation now has the value of being an ultimate service provider for <reight, "ransportation,
&ross>docking and alue Adding as per customer needs. "he present scenario and the future of
the organi$ation with regard to the management are satisfactory. "he organi$ation can increase
the market share by improving with more state of art technology. "he organi$ation can diversify
into related other business areas like :arehouses for lease to other organi$ations, state of art
technology providers for other organi$ations. ore importance is to be given for ?
development by having a separate department for it. :ith the development of such a department,
several favourable impacts such as increase in out put per employee, increased loyalty, team
spirit etc can be generated.
As far as 7& <reight = Logistics is concerned it can be stated that through its e#cellent
service and aggressive logistics service, organi$ation has shown a noticeable increase in the
market share. ?owever, there are some areas where the company is not at the top>most position
but it can certainly gear up in the near future and is committed to acquire that spot. 2nimplementation of the above recommendations, the management can lead 7& to the top most
position when bench marked in the coming years.
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4/> 'iblio%ra?!=
Refere30e:
a? Logistical anagement R "ata c)raw E!!! 3dition.
:ritten by 7onald. /owerso#, and 7avid. &loss.
@? "he anagement of /usiness Logistics R H th 3dition4
:ritten by 3dward Q. /ardi, &.Qohn Langley, and Qohn Qoseph &oyle
0? Logistics and %upply &hain anagement4 &reating alue > Adding Jetworks
:ritten by artin &hristopher.
&e@4te4:
? %ource4 http4IIwww.idsc.com.sgIimagesIserviceSlogisticsSimg1.pg
? http4IIwww.inde#uae.comI"opI/usinessSandS3conomyI%ervicesILogistics
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Annexure
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,O7.ST.CS S8R5ED-------------------------------------------------------------------------------------------------------------
Deta94 of t7e Or5a3ato3
Na6e: SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
#o0ato3:
How 9o35 are =o< t7ere 3 B<43e44 SSSSSSSSSSSSSSSSSSSSS Year4 SSSSSSSSSSSSSS
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
1. &707 are t7e 2aro<4 #o54t04 Ser20e4 =o< offer
<reight
:arehousing
&rossdocking
Jetwork 7esign
2ther alue Adding %ervices if any
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!. &707 4 t7e area of a0t2t=K =o< fee9 =o< are t7e @e4t
<reight
:arehousing
&rossdocking
Jetwork 7esign
2ther alue Adding %ervices if any
'. &707 824o3 of 9o54t0a9 a0t2t= ear34 t7e 6a6<6 rate of ;roft
Ser+i*e
Rate t7e6 o3 S0a9e of 1$
*/est 1! Average :orst !
<reight
:arehousing
&rossdocking
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Jetwork 7esign
Any 2ther
*specifySSSSSSSSSSS
(. &7at are t7e 9o0ato34 to w707 =o<r 0o6;a3= 0ater4 to
i Asia
ii 3urope
iii @%A
iv Australia
v Africa
vi ussia
vii :ithin iddle 3ast only
viii %tate if any other locational speciali$ation
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:arehousing
&rossdocking
Jetwork 7esign
alue Adding
.
). I32e3tor=
&7at 4 t7e a2era5e e9a;4e8 t6e @etwee3 t7e t6e of re0e235 or8er fro6 t7e
0<4to6er to =o<r fr6 to re9ea4e t7e te6 fro6 t7e ware 7o<4e a38 t7e t6e t7e te6
4 rea8= for 6o235 fro6 t7e ware 7o<4e wt7 ;ro;er 8o0<6e3tato3.
SSSSSSSSSSSSSSSSSSSSSSSS 7ays
*. &ere t7ere a3= 47orta5e e0e44 of 4to04 3ote8 3 t7e 9a4t 2erf0ato3 8o3e
Jo shortage I e#cess of stocks noted
%hortage of stocks noted
3#cess of stocks noted
,. C<4to6er Sat4fa0to3
a? I4 0<4to6er 0o6;9a3t4 52e3 ;refere30e 3 or5a3ato3
Kes I Jo
@? How =o<r or5a3ato3 fo99ow <; to reta3 t7e 0<4to6er4
*6ut Jumber 1 on desired coloumn
No. "et7o8 Jumber
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1 6hone &all
E Jew %ervice -ntimation to &ustomers
F )ifts
O 3mail
<a#
D 2ther methods if any SSSSSSSSSSSSSSSS
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11. O<t of t7e a@o2e 7ow 6a3= are t7ere w7o a2a9e8 =o<r 4er20e4 re;eate89=
SSSSSSSSSSSSSSSSS N<6@er4
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