LCL Logistix - deepu

8/6/2019 LCL Logistix - deepu

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LCL Logistix

Logistics

Logistics refers to various functions associated with the organizational disciplines

of planning, managing and controlling the flow of goods and services, people and

related information. It includes all the steps that are required to achieve the timely

delivery of a product, goods or services from the point of origin to the point of

destination.

y All activities that are involved in the movement of goods and services fromthe point of origin to the point of final consumption are grouped under the

term 'logistics'.

y The art of managing or supervising all these activities when groupedtogether as a collective unit, are placed under 'logistics management'.

logistics has been defined as the part of the process of supply chain that plan,

control and implement an effective and efficient flow for the purpose of storage of

goods and services and other related information from the point of commencement

to the point of final consumption with a aim to satisfy the requirements of its

existing and prospective customers.

Difference between supply chain management and logistics

Supply chain management is the process of planning, implementing and

controlling the operations of supply chain. It includes all movement and storage of


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raw materials, work in process inventory and finished items to the customer.

Supply chain management is usually procurement, managing the suppliers and the

flow of goods.

Logistics is managing the real movement (at the ground level)

Logistics Terms

There are some terms which relate to the concept of Logistics and anyaspirant who wants to have a deep insight into the overall procedure of logistics

must be aware of these frequently used phrases.

Certificate of Origin

This refers to a certified document that is used in foreign commerce with

regard to the origin of goods. This document certifies that the products which are

ready to be exported have been manufactured in a specific geographical location

and country. This certificate is sent to the importer by exporter of the product. This

may be beneficial in claiming any concessions. This certificate needs to be signed

by the exporter of the product and needs to be certified by the local chamber of

commerce.

Warehousing

This is the procedure of storing goods at a safe and clean place for the

purpose of safeguarding the goods and may involve keeping goods to be sold at

later stage. This can be described as a place or store where merchandise or


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products are kept. It is done for safe keeping of goods, usually for sale at a later

time.

Distribution

It refers to a process of the movement of people, services and resources to

the place of their consumption or where they are required. This usually involves

storage, transportation, issue and disposal of goods.

Transportation

It refers to the movement of supplies, goods, people and equipment by any

mode of transport such as rail, trolley, water or air. This is considered to be

important aspect of any organization as timely delivery of products ensures

customer satisfaction and brand name for organization. The mode of transportation

may be dependent on several factors like customer requirements and specifications,

past experiences, speed and geographical locations.

Consignor

He is a person who makes the shipment of goods for the purpose of

delivering the same by any mode of transport such as sea, trolley, land or air. Also

known as shipper or sender. He is usually liable for hiring the transportation

vehicle for the goods sent by shipment to be delivered to the consignee. In a

transaction based on credit, he has the right to stop the goods in transit.

Consignee

This refers to an individual, company or manufacturer to whom a shipper or

seller sends merchandise. Intermediate consignee refers to a party who is


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responsible for merchandise delivery to the ultimate consignee. Ultimate

consignee, on the other hand, refers to a party who is in the actual receipt of the

merchandise in an export-related transaction.

Air Way bill

This refers to a bill of lading that is related to air transportation, which tends

to serve as the shipper's receipt. It indicates that the carrier company has consented

to the listed goods and under an obligation to carry the products that are delivered

in the form of a consignment to the destination airport in accordance with the

conditions specified to the consignee and consignor. Air way bills are always non-negotiable.

LCL LOGISTIX (INDIA) PVT. LTD

COMPANY PROFILE

Born out of a vision, a single minded objective that puts service before

anything else, LCL surged forth as a leader in the Indian NVOCC scenario. Itsmeteoric rise stems out of a solid foundation. The management boasts of over 20

years of rich and varied experience in the shipping industry.

LCL's ability to respect and appreciate the customer's needs and then tailor

logistics solutions and make the same available right at the customer's premises has

been the single guiding force behind LCL's spectacular growth. This growth is

based on a solid foundation of trust that LCL enjoys with the trade whether it is a

large corporation, small business or a major shipping line.

LCL group is one of the most well represented groups in India today with offices

and representations in almost all major ports and inland points.


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Locations

As activity grew, LCL threw open operations from multiple centers in India.

Today LCL has offices in all the major metropolitan points and export potential

ICD's to service customers' needs efficiently.

AFFILIATIONS

International AirTransport Association

International Federation of Freight Forwarders Association

International MultiModal Transport Association ( IMMTA )


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Federation of Freight Forwarders Association of India

Association of Multimodal Transport Operators of India

Indian Merchant Chambers ( IMC )

Services

LCL is a world leader in implementing tailor-made integrated logistics programs.

So you can manage your materials, products and information from vendors all the

way to your customer's door-step. Our specialists engineer every solution around

one hub to YOU so be it air/ocean transport, warehousing, custom brokerage, trade

consulting or distribution, every service obeys your orders with clockwork

precision.

Take a look at what's on offer:

y Custom Brokerage.y Scheduled FCL & LCL Service.y De-Consolidation & on-Forwarding.y Project Management.y Pick up Consolidation and Containerization


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Customs brokerage

This is about profession that involves the 'clearing' of goods through

customs barriers forimporters and exporters (usually businesses). This involves the

preparation of documents and/or electronic submissions, the calculation (and

usually the payment) on behalf of the client of taxes, duties and excises, and

facilitating communication between the importer/exporter and governmental

authorities

Scheduled FCL & LCL Service.

FCL - Full container load

LCL - Less than container load

This refers to occupancy of space in the container by the exporter. This

process is made routine and scheduled manner. Its details can be obtained in

upcoming pages.

De-Consolidation & on-Forwarding.

Separating a 'consolidated' (usually containerized) shipment into its original

constituent shipments, for delivery to their respective consignees. Also called

degroupage.

Project management

It is the discipline ofplanning, organizing and managingresources to bring

about the successful completion of specific project goals and objectives. Aproject


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is a finite endeavor--having specific start and completion dates--undertaken to

meet particular goals and objectives, usually to bring about beneficial change or

added value. The primary challenge of project management is to achieve all of the

project goals

Pick up Consolidation and Containerization

It refers to fusing all the individual concerns and they bring together. Later

they make consolidated things to containers to make safe path for destination.

Sea Freight

A major portion of the globally traded goods is shipped using Ocean vessels.

Today LCL's main line of freight forwarding business is ocean freight forwarding

service. This service is the best solution for delivering economically sizable loads

of cargoes. We have extensive experience handling both general and specialized

shipments including both inbound and outbound cargoes.

LCL can ensure your consignment travels by the most cost-effective route to

almost anywhere in the world. With import and export movements by full

container loads (FCL), or less than container loads (LCL) from major markets

around the world we utilize both conference and non conference vessels to give

you a choice that best meets your requirements. Furthermore, if you have a large

number of suppliers with small consignments destined for different locations, we

can consolidate them in F.C.L shipping containers, and coordinate theconsignments. Thus, saving you time and money.

We can handle your sea freight collections, container loading, documentation and

actual movements, no matter what size or shape your import or export


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consignments. You can rely on our comprehensive door to door service. In

addition, we can arrange the best shipping options such as multimodal

combinations of land/sea/air to meet your specific needs for safety, schedule and

location.

Air Freight

LCL is an IATA Licensed freight forwarder that combines air freight with

ocean freight, customs brokerage, inland transportation and integrated logistics.

LCL Group's comprehensive, cost-effective service guarantees that your air freight

shipment will be delivered on time and within budget every time you choose ourglobal solutions.

Warehousing & Distribution

LCL Group's warehousing network is located throughout India. Our logistics

centers, in strategic locations are designed to support your global sourcing and

J.I.T. material management needs. These centers also serve as central distribution

hubs for direct-to-customer shipments. Best of all, with LCL Group, your company

avoids the expense or investment of maintaining dedicated warehousing facilities

in multiple locations.

Transportation

Keeping in line with our commitment towards providing efficient cargo

management services to our customer we have promulgated a Transportation

division and armed it with Closed Body Trucks this would enable and ensure

timely and efficient movements of our Shipper and Consignee cargoes. In addition


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to CBT's we have also deployed trailers of different capacities to facilitate the

movement of containers in order to serve the Export / Import FCL trade.

Projects

Company would like to introduce projects division, which will specialize in

project and heavy lift transportation, marine chartering, and RoRo shipping. Our

mission is to become a strong player in these niche markets with an innovative

approach and high service level to serve our clients even better in these dynamic

sectors.

Our project and heavy lift division is particularly specializing in globaltransportation of any kind of heavy lift, oversized units and project related cargoes,

either as ocean transport only or as integrated transport to jobsite.

Our aim is to, through personal contact, understand and support our clients on all

levels of project preparation and planning enabling them to achieve best possible

and cost-effective handling of their goods.

The freight forwarding and contracting department are handling complicated,

integrated movements from factory to foundation, as well as general project

forwarding, including heavy haulage, cranage and customs handling worldwide.

Such requirements are always handled with complete and careful coordination

keeping in mind project schedules as well as all aspects and possibilities available.

As we are shipping variety of cargoes, in many cases we are able to combine

cargoes from various projects creating thereby savings for all involved.

Providing specialised marine vessels and tailor made marine transport solutions is

another service we are offering. Our specialised marine chartering department

sources any type of special carrier for any specific project always keeping in mind

most economic, technically feasible and safe handling of the cargo.


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Departments

Every organization should have various activities to be performed in routine

basis so the organistaion work composes of various looped mechanism. So in

order to breakup the tough actions various departments have been formed. The

departments divide the work and its ease to carry the process in well stipulated

manner. So in the LCL logistics the departments are as follows

y Sales and marketingy Operationy Customs clearancey Documentationy Accounts

These are the various classifications in the departments and the name of the

department will insist its function clearly. In short let me describe the details they

do full details can be seen in individual head.

Sales and marketing: in this the main work is to market the service among the

business people and to take the initial setup for the order

Operation: this vested with major activities like document filing and it hold the

functions to deal with customs and the procedures.

Documentation: this is about various paperwork that are to be filled and

maintenance of various forms that deal to government and export also import.

Accounts: this section deals with the fund related activities this section keeps

record on payment and receipts.

These are just an overview about their major function their details are as follows


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ORGANISATION CHART

CEO

Regional manager

Branch

Manager

Sales and

marketing

Operation &

Customs clearance

Documentation Accounts

Staffs


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Sales and marketing

NVOCC

Non-vessel operating common carrier -- they're kind of like subcontractorsfor shipping. They book large quantities of space on ships and sell smaller

quantities of space to shippers. They also consolidate multiple shipments into one

container load that moves under one bill of lading.

As LCL logistix belongs to NVOCC they used to keep reserve the space in the

ships and they market the space availability to the various exporter. As Karur is

prone for its exports in home textile products there will be regular consignments so

its essential to have better marketing. Similarly the company uses its maximum

effort to proliferate the market by involving with unique strategies and services.

Space reservation Offer to public

In this department the major process is to promote sales to the concern theydo with their marketing. They promote their strength and facilities offered to the

people and get image of reliable among business people and finally get the

consignment.

They seek the exporter and get the details about the order to be delivered and the

complete details about time, place, type of goods, space needed, and all the

calculation will be carried out and the department will evaluate the proper vesselthat suits the consignor needs after getting the proper info regarding with the vessel

the details will be mentioned to the consignor regarding with the vessel type,

freight no., carrier, etc and the it will be getting the confirmation from the

consignor then the department function is about booking.


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Process flowchart:

Seek for the consignment

Meet the demands of the consignment

Scrutinize

Confirmation

Booking

Booking is the final stage for the initial step once the order is confirmed by the

exporter and the details about the goods will help to determine the facility needed

for shipment after analyzing the all the department will get confirmation from theexporter about the date, time and all other vital things that makes the process

smooth. When the confirmation is made simultaneously the confirmation to the

vessel will be carried. Once this step is over the space is allotted for that particular

exporter.


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The company also allots an individual person who will be in charge for the

particular transaction until it carried down. So the person has to provide all kind of

clarification to the exporter in all circumstance. This makes the exporter to feel

comfort. This also helps to structure effective customer relationship.

Freight charge

Usually its classified into two types like

y Free on board (FOB)y Freight prepaid (FPP)

Free on board (FOB)

FREE ON BOARD means the seller fulfills its obligation to deliver when the

goods have passed over the ship's rail at the named port of shipment. The buyer has

to bear all costs and risks of loss of or damage to the goods from that point. FREE

ON BOARD requires the seller to clear the goods for export

Freight prepaid (FPP)

Air or ocean freight charges that are paid at the port of origin or loading, and

are billed to the importer in the exporter's invoice. It is not refundable even if the

shipment fails to arrive at its destination.

So based on the deed which is made by the exporter or importer the freight charge

will be collected.


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Operation department

The operation department holds all the major activities with rearding to

goods movment from the place of exporter to the ship. It has the major division

called customs clerance department. It has both functions for import or export. So

normally this department have hight priority in functioning. The procedure also

differ from type of cargo and the purpose import or export. Generally document

filing and customs is the divisions that perform the most activities in this

department. So the two roles 1) filing of documents 2) customs

The procedure for export are as follows

Obtaining the cargo and documents from exporter

Arrangement for carrier

Filing the douments

Customs examination

Stuffing

Container initiating


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Bill of lading

Tracking

As Karur is majorly involved in export the organisation is mainly concerned about

export of the goods than import. It also acts as clearing and forwarding division in

customs. This helps the consignment flow in easy manner by clearing the

requirements of customs. As CFS is located in Karur most of the consignment

moved to CFS and the clearance procedure will be carried out in CFS itself, this

made the shipment procedure very easy aafter getting clerance the consignment

will be sent to the concerned port.

CFS

A facility at which (export) cargo is received from merchants for loading

(stuffing) into containers or at which (import) cargo is unloaded (stripped) fromcontainers and delivered to merchants.

Import procedure

Import general manifest

Bill of entry (Request letter reference with consignee, shipper, material)

Bill of entry filing


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Pest control

Cargo assessment / auditing

Customs clearance

Duty

Cargo release

While booking the vessel there are 2 kinds of option they are

FCL - Full container load

LCL - Less than container load

On basis of the export cargo the option will be selected. The FCL and LCL are

differentiated, in practice, on whether the 'whole container' or 'not the whole

container' is intended for the consignee.

The FCL means the load reaches its allowable maximum (or full) weight or

measurement. In practice, however, the FCL in the ocean freight does not always

mean packing a container to its full payload or full capacity. For example, an

exporter books a 20' container that is intended for a consignee at FCL flat rate of

US$1,500. If the consignment occupies 500 cu. ft. and weighs 5,000 kgs. Only, the

case is still FCL and the exporter has to pay US$1,500.


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If an exporter intends to pack a container to the full capacity or full payload with

the consignments of two or more consignees for the same destination, the case is

LCL and the carrier will charge the LCL freight rate on each consignment. In the

LCL arrangement, the shipper is required to deliver the cargo to the carrier's

container freight station for containerization, thus there is no guarantee that the two

or more consignments from the same exporter will share the same container. In

some cases, the exporter is allowed to pack the container at their premises in the

LCL arrangement, and then the carrier uses that same container to pack in more

cargo from other shipper(s) to make a full container load at the container freight

station.

Overview about procedures

y Filing of consignment details with Indian customs i.e. bill of entry forimports and bill of export for exports.

y Assessment and scrutiny by customs.y Payment of duty if applicable.y Quality clearance i.e. quarantine, public health, etc.y Customs appraisal of consignment and certification of consignment

worthiness for import export.

y Delivery order or order of exports as the case maybe.y Survey of consignment (optional)

Customs

This section plays a vital part in goods movement. So the company has

allotted separate officials to deal with the customs procedure. They are specialized

in dealing with the various norms that are prescribed by the Indian customs. These


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officials will have regular touch with the officials in order to have smooth flow of

function. They used to classify the procedure incase of export they will file

shipping bill and for import they deal with bill of entry.

Electronic Data Interchange its the latest technology that is being followed by the

organization at all stages EDI will help to ease the work process. Its full details can

be seen documentation department. The company use both EDI and manual filing

this will be based on the situation if the goods need to be moved to CFS in Karur

they will follow the ordinary manual filing and incase if the goods transferred to

port they stick with EDI process.

Difference between freight forwarding and 3PL

A freight forwarder is an agent for the exporter in moving cargo to an

overseas destination. These agents are familiar with the import rules and

regulations of foreign countries, the export regulations of the government, the

methods of shipping, and the documents related to foreign trade.

A third-party logistics provider is a firm that provides outsourced or "third

party" logistics services to companies for part or sometimes all of their supply

chain management function. Third party logistics providers typically specialize in

integrated warehousing and transportation services that can be scaled and

customized to customers needs based on market conditions and the demands and

delivery service requirements for their products and materials.

3PL

AThird-party logistics provider is a firm that provides outsourced or "third

party" logistics services to companies for part, or sometimes all of their supply

chain management functions. Third party logistics providers typically specialize in


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integrated operation, warehousing and transportation services that can be scaled

and customized to customers needs based on market conditions and the demands

and delivery service requirements for their products and materials.

Every export based on company cannot afford much on logistics so this

made emergence of 3PL they assist this export and import transactions by breaking

up the function. This made the corporate to free their logistic burden. These 3pl

offers various types of services. Like all other LCL offers so many services that are

mentioned above. They would perform activities such as, pick and pack,

warehousing, and distribution (business) the most basic functions of logistics and

offer their customers advanced value-added services such as: tracking and tracing,

cross-docking, specific packaging, or providing a unique security system.

Documentation Department

This department holds the major legal activities and it develops all kind of

proof for export or import. The major role is to maintain documents and get filed

with the various alternatives as mentioned by the act. They often have paperwork

today the technology have made some alteration in its function. That is the

invention of EDI in the global trade activity.

EDI

Electronic Data Interchange is simply a set of data definitions that permit

business forms that would have been exchanged using paper in the past, to be

exchanged electronically. This simple set of definitions has spurred a number of

organizations to put in place an operational environment in which the exchange of

electronic business forms substitutes for the exchange of paper forms.


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Electronic data interchange aims at single point collection of data for use by

various agencies participating in a common activity.

This department often keeps in touch with both ends that is shipper and

government officials. It mutually get avail all the info from the exporter and files

the necessary forms and get approval from the concerned custom and government

officials. They also keeps record of the entire process until the consignment

reaches destination once the it reached the final formalities will be made and it will

intimate the exporter. Later it submits the documents that are to be approved from

various officials.

The clearance procedure of goods will differ incase of EDI and non EDI so there

will be lot of steps that are need to be carried out. non EDI system is nothing but

the old paperwork procedure. The clearance procedure have stated below

according to the method

Tracking of information

Any information required for filing the document can received at liners

website or to customer care of the liners. The information such as IGM number,

ETA, vessel name, shipping details etc can be received in above mentioned ways.

Clearance procedure for export

Processing of Shipping Bill - Non-EDI:

Under manual system, shipping bills or, as the case may be, bills of export

are required to be filed in format as prescribed in the Shipping Bill and Bill of

Export (Form) regulations, 1991. The bills of export are being used if clearance of

export goods is taken at the Land Customs Stations. Different forms of shipping


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bill/bill of export have been prescribed for export of duty free goods, export of

dutiable goods and export under drawback etc.

Processing of Shipping Bill - EDI:

Under EDI System, declarations in prescribed format are to be filed through

the Service Centers of Customs. A checklist is generated for verification of data by

the exporter/CHA. After verification, the data is submitted to the System by the

Service Center operator and the System generates a Shipping Bill Number, which

is endorsed on the printed checklist and returned to the exporter/CHA. For export

items which are subject to export cess, the TR-6 challans for cess is printed andgiven by the Service Center to the exporter/CHA immediately after submission of

shipping bill. The cess can be paid on the strength of the challan at the designated

bank. No copy of shipping bill is made available to exporter/CHA at this stage

Documents involved in export

y Shipping Bill / Bill of Exporty Customs Declaration Formy Dispatch Notey Commercial invoicey Consular Invoicey Customs Invoicey Packing Listy Certificate of Inspection

y Certificate of Shipmenty Health/ Veterinary/ Sanitary

Certification

y Certificate of Conditioningy Antiquity Measurementy Shipping Ordery Cart/ Lorry Ticket

Clearance procedure for import

EDI non-EDI system


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y If the goods are cleared throughthe EDI system no formal Bill of

Entry is filed as it is generated in

the computer system, but the

importer is required to file a cargo

declaration having prescribed

particulars required for processing

of the entry for customs clearance.

y Signed invoicey Packing listy Bill of Lading or Delivery

Order/Airway Bill

y GATT declaration form dulyfilled in

y Importers/CHAs declarationy License wherever necessaryy Letter of Credit/Bank

Draft/wherever necessary

y Insurance documenty Import licensey Industrial License, if requiredy Test report in case of chemicalsy Adhoc exemption ordery DEEC Book/DEPB in originaly Catalogue, Technical write up,

Literature in case of machineries,

spares or chemicals as may be

applicable

y Separately split up value ofspares, components machineries

y Certificate of Origin, ifpreferential rate of duty is

claimed

y No Commission declaration


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Accounts Department

This department functions with all kind of fund related activities. This often

keeps record about contract details and the payment that are to be made or

received. The accounts department prepares bills for the clients as per contract

term. They maintain the accounts and makes arrangement for the collection of

dues. The key functions that can be classified are as follows

y Payment follow-upy Dutiesy Bank accounts

Payment follow-up is nothing about the fare that is vested with the particular

consignment. The department will hold various records and it finally prepares the

essential invoice to the exporter this also have record about the transaction cash it

will submit and fulfill the documents on behalf of the exporter and it will present to

the banker in order to claim for the money by the exporter.

Duties is nothing about various taxes that are to be paid by the client while export

or import there are certain duties that are to be paid by the person this duties

depends on the various conditions that is it will change based on the industry and

various duty drawback schemes so its must to have proper idea to process this

section.

Once the certain activities are carried out that is preparing invoice and other bills

the department will forward those essential one to documentation department and

there it will be filed. This department also has function in the staffs salary


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allotment. They hold down all the bank related activities. They also used to record

all the expenses that are made within the organization.

Jotting overall key activities

y researching and planning the most appropriate route for a shipment (takingaccount of the perishable or hazardous nature of the goods, cost, transit

time and security);

y arranging appropriate packing (taking account of climate, terrain, weight,nature of goods and cost), delivery and warehousing of goods at their final

destination;

y negotiating contracts, transportation and handling costs;y obtaining, checking and preparing documentation to meet customs and

insurance requirements, packing specifications, and compliance with

overseas countries' regulations and fiscal regimes;

y offering consolidation services by air, sea and road - ensuring cost-effective and secure solutions to small shippers with insufficient cargo to

utilize their own dedicated units;

y liaising with third parties to move goods (by road, rail, air or sea) inaccordance with customer requirements;

y arranging insurance and assisting the client in the event of a claim;y offering tailored IT solutions and electronic data interchange (EDI)

connections;

y arranging payment of freight and other charges, or collection of paymenton behalf of the client;

y utilizing e-commerce, internet technology and satellite systems to enablereal-time tracking and tracing of goods;


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y arranging air transport for urgent and high-value freight and managing therisk door to door;

y arranging charters for large volume, out-of-gauge or project movements byair and sea;

y acting as broker in customs negotiations worldwide to guide the freightefficiently through complex procedures;

Services offered to its client Overview

The total service that are provide by the organization to its clients are

described below,

Arrangement for local transport

Getting to local warehouse or customs bonded area

Preparing for customs clearance

Stuffing

Leading to vessel

Departure

These are the some facilities that are offered by LCL to its clients in effective these

above mentioned are just a layout not involved with deep sight. The company offer


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lot of unique services which can be observed by going through this report. Below I

have placed the diagrammatic depiction of the process involved in export and

import term

Export activities layout


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Import activities layout

Current Logistics Related Issues

There are several factors that affect logistics. These issues need to be

anticipated, prepared for and taken advantage of for a company to be successful in

todays market. They are

External:

y Globalisationy Technologyy challenging nature of the work forcey Environmental concerns


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Internal:

y Customer service and qualityy Third party networksy Supply chain managementy Changes in management and organization style

Listed below are some of the steps that could be followed to ease the above

mentioned issues:

Performance:

y Better service for customersy Improved productivityy Assess just in time and quick response needs

System structure:

yBetter relationship with vendors, customers and third parties to moreeffectively manage the supply chain

y Better relationship within and across the organization

Technology integration:

y Better information systems that connect functions and organizationsy Combine information and material handling systems for increased efficiency

and effectiveness.


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Third Party Logistics Markets in India

With growing impact of globalization, there is an increasing pressure on

companies to achieve extremely efficient supply chains, which is possible only

through a professional management of the logistics operations. Since the 'third

party logistics providers', the professional logistics service providers can offer such

efficient logistics solutions, more and more companies are adopting 3PL services

in their logistics operations, thus resulting in an impressive growth of 3PL markets.

Prospects for growth in third party logistics (3 PL) market in India looks promising

in view of the improving infrastructure such as highways, ports, bridges and

increasing connectivity. Growth prospects are visible from the fact that total

revenue generated by 3 PL players has surpassed US $1.5 bn in 2008 as against US

$890 mn in 2005.

Asias Next Major Logistics Hotspot India

A Rising Star

Since gaining its independence from Britain in 1947, India has grown up in

the shadow of the Red Dragon. Its population and labor force rank second in the

world to China, and it is fourth globally in terms of GDP purchasing power parity

$3.7 trillion trailing only the United States, China, and Japan.

But as Chinas aggressive economic policies and government control over

infrastructure investment command the attention of global businesses looking for

abundant cheap labor and sourcing opportunities, India is taking a different tact.

The government has been quietly building a foundation for its own economic

revolution with a laissez faire, wait-and-see approach to reform for better or

worse.


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Indias measured strategy reflects its historical and cultural transformation from a

British colony to a republic one that eschewed violent upheaval for passive

reform.

The very colonialism that Mohandas Gandhi resisted so ardently in the 1940s has

paradoxically given India a cultural edge as its global economy evolves. While

Hindi is the countrys official tongue, English has become the language of

commerce and trade.

Many U.S. companies outsource telecommunications and business processes to

India because of its well-educated, English-speaking labor pool. Industry expertsanticipate this trend will continue.

The Place to Be

To meet increasing demand from customers, transportation companies are

also expanding in India. Memphis-based FedEx, for example, began operations in

India in 1984 and 13 years later became the first express company to launch an all-

cargo flight to India. In October 2005, FedEx Express unveiled new service

expansions in India, connecting 4,348 cities and towns across the country to the

world.

As part of this effort, FedEx added five new weekly flights from Delhi westbound,

bringing the total number of weekly flights to 16, and making it the first express

carrier to have two gateways in India Mumbai and Delhi.

India is the place to be, says Creeten. It is a fast-growing, market-driven

economy. As India emerges as an economic superpower, the elements critical for


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success on the global scene will continue to be speed to market, quality, cost, and

efficiency.

In turn, India offers logistics and transportation service providers ample

opportunity to tap into an emerging marketplace. Key customer segments in India

include pharmaceuticals, fashion, gems and jewelry, engineering goods, and

precision tools most of which require special shipping provisions.

The apparel industry, by example, is turning to Indias textile mills for better

quality, higher-value fabric. To meet the distinct needs of Indian garment

exporters, FedEx created its Solutions for the Fashion World offering.

It also provides an International Priority option for valuable goods, which offers

secure custodial control and time-definite, airport-to-door service from India to key

destinations around the world. This type of service is key for apparel

manufacturers and their trendy customers.

Innovation vs. Growing Pains

Global businesses ultimately are attracted to countries that take an

innovative approach to developing the requisite transportation connects and

technology infrastructure necessary to expedite cargo movement. India has a leg up

on competing countries given its pedigree in the business process outsourcing

sector and its English-proficient labor pool.

For many outsourcers and investors, Indias potential as a pivotal link in the global

supply chain far outweighs its current growing pains.

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