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EXECUTIVE SUMMARY
INDUSTRY PROFILE
India is being touted as the land of opportunity for logistics service providers all over the world.
The Indian logistics market represents $ 50billion and is growing at a rate of 7 percent annually.
Transportation costs account for nearly 40 of production costs! logistics costs around "# of
%&! compared to ' in the (). rowth in Indian economy is the ma*or driving factor for the
demand in logistics industry.
+utomobile and engineering goods! chemicals! ,-! cement and te/tiles have been identified
as the top five contributors to logistics revenues.
India has the second highest largest road network#.# million km. 1oad 2etwork carry nearly
35 of freight The Indian 1ailways boasts of being the worlds nd largest rail network spread
over '"!5"" km and covering 3'63 stations. The freight segment accounts for roughly two thirds
of railways revenues. It has " ma*or and "'4 minor intermediate ports spread across the vast
coastline of 75"7km. The " ma*or ports handle about 73 per cent of the traffic. &ort traffic to
grow to a level of 650 -illionTonnes per +nnum by 006 -inistry of )hipping. +viation holds
a small share of Indias freight market. +ir ,reight is very e/pensive in India in comparison to
road and rail. The si8e of the world air cargo market is estimated at 7 million tonnes valued at
$00 billion. India accounts for meager # of the global air cargo market. +s per an e/pert
estimate! Indian air cargo industry is going to be double by the year 0"0.
COMPANY PROFILE
9/peditors international India pvt ltd is a global logistics company which was established in the
year "676 by &eter.:.1ose and his partners in ;ashington. 9/peditors is much more than getting
a piece of freight from one point to another. The ouncil of uirements.
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9/peditors *ob is to make sure that from raw material to finished goods sitting on the retail shelf!
they provide the critical services and information necessary to give their clients a competitive
advantage in the management of their supply chains.
Need for the study:
To study about the domestic transportation of goods its current status! challenges and
re>uirements.
OBECTIVES
• To know the current status of domestic transportation.
• To know the problems facing by the customers with transporters! challenges taken to
overcome them.
• To know the modern technology used in transportation of goods.
SCOPE OF T!E STUDY
The study will help us to know the present status of the Indian logistics.
It helps to know the problems facing by the customers with transporters.
To know the modern technologies used in transportation of goods
MET!ODOLO"Y
-ethod of collecting primary data was through >uestionnaire and personnel interview and
secondary data has been collected through Internet! observation! company manual etc. ,or the
purpose of study logistics e/ecutives of manufacturing companies have been chosen as a sample
si8e of 50 through convenient random sampling. %ata collected was tabulated and simple
percentage method was used to derive conclusion. %epending on this I have made my own
suggestions ? given my own idea to improve transportation of goods.
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FINDIN"S
• -a*ority of the customers are facing the problem of shipment tracking facility in
transporting vehicles.
• -a*ority of the manufactured goods are damaged due transportation through open
trucks.
SU""ESTION AND RECOMMENDATIONS
• )ince ma*ority of the customers are facing the problem of shipment tracking hence a
tracking tool called &1) system should be adopted to measure! record and transmit parameters like date! time! speed and location to the command centre using the local
)-&1) network. The system automatically switches over to )-) wherever &1)
coverage is not available.
• In India ma*or transportation is through open trucks hence there is increase in
damageloss. )o closed trucks like canters and container transportation will be a better
alternative.
CONCLUSION
• -odern technological device called &1) should be used in transporting vehicles! so
that customers can track the vehicle.
• anters and containeri8ed transportation is adopted! so that damageloss can be
minimi8ed.
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INTRODUCTION OF T!E STUDY
uirements. )ome of the key logistics and supply chain practices that impact
performance are related to estimation of customers order! efficient and effective delivery!
integration and collaboration throughout the supply chain! sharing of vision and information
using formal and informal methods! as well as use information and communication
technology@ITA and various specialist for performing specific *obs across the supply chain. +ll
of these practices impact logistics the supply chain performance.
T#t$e of the %ro&e't
(A study o) Do*est#' tr+)s%ort+t#o) #) I)d#+,
It is virtually inconceivable in today=s economy for a firm to function without the aid of
transportation. Transportation is an essential and a ma*or subfunction of logistics that creates
time and place utility in goods. In fact! the backbone of the entire supply chain is the
transportation management that makes it possible to achieve the well known seven 1s the right
product in the right >uantity and the right condition! at the right place! at the right time! for the
right customer at the right cost.
The importance of transportation should also be seen by looking at the impact of transportation
on a country=s economy. )tudies reveal that in India the total logistics costs constitute nearly "0
percent of the 2& out of which nearly 40 percent is because of transportation alone. The ma*or
infrastructure re>uired for moving goods from one place to another in India involve the active
roles of 1oads! 1oad ,reight Industry! 1ailways! &orts and )hipping! and &ipelines! all of which
are either managed or regulated by the government in accordance with the private.
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Transportation and logistics services are generally outsourced to third parties. Transportation is
mainly by road and the leadtime of these supply chains is still as high as nine to twelve weeks.
This is >uite understandable! given the si8e of India and the state of its infrastructural facilities.
Transportation and logistics is generally through their own fleet. In some cases! it is outsourced.
1outing and scheduling software are increasingly being used for these activities. ,ive out of si/
firms use standard 91& software. There is high focus on tracking of customer orders and
customer care and technologies like bar codes and &) are being employed.
In our on site observation of 50 firms! we find that the primary focus is on >uality! cost and
service. 1ecently! responsiveness @delivery speed! safety! volume fle/ibility! shipment weight andinnovationA is also catching up management attention. orrespondingly! the ma*or concern in all
these firms and their supply chains are related to cost! clarity of demand! reliability of partners!
shortening of delivery cycle! production and logistics fle/ibility and innovation in supply chain
practices. )haring of benefits within the supply chains has not yet gained much attention. ,irm
especially in the automotive! retail! manufacturing and ,- sectors are increasingly opting to
outsource their logistics re>uirements to speciali8ed service providers! the positive business
atmosphere and a burgeoning consumer market are making the shipper community push the
logistic service propositions.
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Lo-#st#'s
Or#-#) +)d Def#)#t#o) of Lo-#st#'s:
The term BlogisticsB originates from the ancient reek BCDEFGB @BlogosBHBratio! word!
calculation! reason! speech! orationBA.
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In turn! #&< providers are continually looking to provide innovative supply chain solutions to
customers by focusing on valueadded capabilities! differentiating themselves from the
competition. They focus on key ob*ectives! such as implementing information technologies!
instituting effective management processes! integrating services and technologies globally! and
delivering comprehensive solutions that create value for #&< users and their supply chains. This
need to partner with customers and become more integrated into their supply chain processes has
created the ancillary need to locate close to these customers.
That isn=t to say the need for easy access to transportation hubs and different modes of
transportation won=t continue to be important. ut the above shift in business strategy! along with
the advances in technology and enhanced communication! has opened the door for logistics
facilities to operate effortlessly in a myriad of location.
&rofit warnings! share price pressures! mergers! reorgani8ations! relocations! disposals! painful
layoffs and great geopolitical uncertainties can sweep away even the most comprehensive
logistics strategies P and thats despite outstanding management over many years. These are
e/ceptionally difficult times and it has never been more important to connect logistics and freight
planning to e/ecutive board thinking than now. Its easy to lose sight of the bigger picture in the
rush to cut infrastructure cost and conserve cash. Qopefully organi8ation succeed in protecting
the business! satisfying shareholders and analysts! but what about capacity and fle/ibility! morale
and momentumO
To be a logistics winner in the coming years organi8ations need to use the downturn to reshape
for growth! propelled by an unshakeable conviction that the mission is still important! that more
prosperous times lie ahead! and that in some way the company infrastructure is helping to build a
better kind of world.
Kwn passion for running the race matters most of all in a downturn! when people are insecure!
see only savage cost savings! and loyalty is tested. The corporations future will be dominated by
si/ factors! or faces of a cube! spelling , ( T ( 1 9.
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INDUSTRY PROFILE
uick look back at some logistics history may prove
very enlightening.
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application of the same by him for the betterment of his organi8ation. The logistics manager
ensures that the company is benefited by an effective and efficient system of logistical
management. Qe also needs to ensure that the right kind of products and services are provided at
the right time and for a right price! whether inside the organi8ation=s premises or delivery of
shipments outside the premises of the organi8ation.
uisite knowledge to deliver
sustainable enhancements in the field of supply chain management. +s has been the case
throughout most of logistics history! the task of a logistics manager involves a clear vision and a
drive within to deliver results under strict deadlines in addition to his usual responsibilities.
Lo-#st#'s #) I)d#+
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5. It has the nd largest pool of >ualified technical workforce.
India spends "# percent of its ross %omestic &roduct @%&A on logistics as opposed to the
usual practice of "0 percent by other developing nations. The Indian economy is striving for
improvements in the field of logistics and supply chain management to gain the competitive edge
in today=s worldwide economy. The Indian government has favored the logistics market of India
by making some helpful plans and policies to assist in its growth.
There are several events organi8ed for the promotion of logistics in India which are focused in
their approach and relevant to the business solutions besides providing a solid platform for
allowing people from a wide industry spectrum to meet and provide business within them from
all over the country. This has been an emphatic source of providing business solutions and their
development.
)everal global third party logistics providers @#&
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key sectors include fashion! gems! *ewelry! pharmaceuticals! precision tools and engineering
goods! all of which need special shipping provisions.
S#/e of the I)d#+) $o-#st#'s #)dustry
The annual logistics cost in India is estimated to be "4 of the %&! which translates into ()%
"40 billion assuming the %& of India to be slightly over ()% " trillion. Kut of this ()% "40
billion logistics cost! almost 66 is accounted for by the unorgani8ed sector @such as owners of
less than 5 trucks! affiliated to a broker or a transport company! small warehouse operators!
customs brokers! freight forwarders! etc.A! and slightly more than "! i.e. appro/imately ()%
".5 billion! is contributed by the organi8ed sector. )o! one can see that the logistics industry in
India is in a nascent stage. Qowever! the industry is growing at a fast pace and if India can bring
down its logistics cost from "4 to 6 of the %& @level in the ()A! savings to the tune of ()%
50 billion will be reali8ed at the current %& level! making Indian goods more competitive in the
global market. -oreover! growth in the logistics sector would imply improved service delivery
and customer satisfaction leading to growth of e/port of Indian goods and potential for creation
of *ob opportunities.
Lo-#st#'s M+)+-e*e)t +)d Lo-#st#'s M+)+-e*e)t Soft.+re
uirements. + 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. Rery few generali8ed software
are only available in the new market in the said topology. This is because there is no common
rule to generali8e 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. There are
various software that are being used within the departments of logistics.
The softwares that are used in these departments are!
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onventional %epartmentL RT software T-) software
ontainer TruckingL T-) software
Bus#)ess Lo-#st#'s
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process. -achines are e/changed and new ones added! which gives the opportunity to improve
the production logistics system accordingly. &roduction logistics provides the means to achieve
customer response and capital efficiency. &roduction logistics is getting more and more
important with the decreasing batch si8es. 9ven a single customer demand can be fulfilled in an
efficient way. Track and tracing! which is an essential part of production logistics due to
product safety and product reliability issues is also gaining importance especially in the
automotive and the medical industry.
Fe+tures of I)d#+) Lo-#st#'s I)dustry
S+ number of smallintegrated players.
STransportation costs account for nearly 40 of production costs.
S
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"ro.th Dr#2ers for Lo-#st#'s #) I)d#+
Seneral growth of the Indian economy.
S-anufacturing boomfor e/ports as well as for domestic
market.
S9/pected rise in International trade from India.
S-2s setting up manufacturing in India2okia! ,le/tronics.
Sovernments thrust on Infrastructure ()$"7 billion to upgrade highway networks.
SImplementation of R+T will lead to growth in warehousing business.
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SKpening of organi8ed retail sector attracting retail chains like ;al-art and arrefour into
Indian players like &antaloon and 1eliance.
overnment )upport
The Indian government is making great efforts by
S&rivati8ing ports and airports.
SIncreasing the number of gateway ports
SInvesting in highway pro*ects
S)treamlining customs and e/cise procedures
SImplementing 9%I systems
SImproving the rail network .
SThe government plans to invest $"7 billion in transport infrastructure between 0030"0.
So*e of the %ro&e'ts +re
• +mend in the 2ational Qighway +ct to e/pedite land ac>uisition! permit private
financing and allow tolling.
• Improvement in rural access by launch of the &rime -inisters 1ural 1oads
&rogram.
• 1eduction of congestion on rail corridors and improvement of port connectivity by
launch of 2ational 1ailway %evelopment &rogram.
• (pgradation of infrastructure and connectivity in the country=s twelve ma*or ports by
initiating the 2ational -aritime %evelopment &rogram.
• 9stablishment of Tariff +uthority for -a*or &orts to regulate tariffs.
•
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• Kn a perannum basis! (nited )tates invests 5 percent of its annual logistics spend on
infrastructure! India is investing # percent or over four times as much.
Industry rowthues reen! -anaging %irector ,ed9/India!
-iddle 9ast ?+frica.
+uto
• Kutsourcing in +uto sector could be worth $#75 billion by 0"5 and India could
capture up to $5 billion of this amount. VsourceL-cWinseyX
hemicals
• Indias chemical e/ports could reach $"5 billion by 0"5. V)ourceL -cWinseyX.
9lectrical and 9lectronic &roducts
• Indias e/port in electrical and electronic products could reach upto $"' billion a year by
0"5VsourceL -cWinseyX.
1etail
• Kpening up of the organi8ed retail sector is attracting big retail chains like ;al-art and
arrefour in addition to big Indian retailers like &antaloon and 1eliance.
• +ll this would re>uire the presence of professional logistics players in the market to carry
out supply chain activities.
Thus demand for logistics services would be largely driven by the growth of the Indian
economy.
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#.Integrates logistical activities
• In conventional management environment! various activities of logistics work in isolation
under different management functions. 9ach pocket trying to sub optimi8e its ob*ectives
at the cost of overall organi8ational ob*ectives. &urchasing trying to purchase at minimum
price at the cost of what is needed by operations. Kperations produce large >uantities at
minimum production cost ignoring demand leading to doom inventory. uality parameters like performance ? reliability! where brands are almost
irrelevant! competitive edge is that of availability of product and service in terms of time!
place and >uantity.
5.
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marketing function. -arketing is trying to sell the product in the market place. uality of performance is vanishing and brands are losing their magic.
+s a result of above we find that availability is an important determinant of purchasing decision.
7.
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OPERATIONAL OBECTIVES OF LO"ISTICS
". 1apid response
,fle/ibility ob*ective of an organi8ationL )ome companies measure this as response time to
customers order. Kn an average how much time do we need to fulfill one particular type of
customers order in a yearO This is a measure of 1apid response.
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single piece flow as practiced by :IT companies in :apan or elsewhereX. uality of product fails logistics will have to ship the product out of customers premises
and repeat the logistics operation again. This adds to costs and customer dissatisfaction.
Qence logistics should contribute to TY- initiative of management. In fact! commitment to
TY- has made the managements world over wake up to the significance of logistics
function. uality improvement by improving the
>uality of logistics performance continuously and continually.
3.
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1igid laws prohibiting unscientific disposal of items associated with product VpackagingX
1igid laws making recycling mandatory
9rroneous order processing by supplier
1everse logistics is an important component of logistics planning.
Lo-#st#'s fu)'t#o)s
". Information management
-anagement is appreciating importance of information as an element of logistics of late! now.
The role of information is vital in order processing. Yuality of information is critical as error
in composition of information re>uirement creates potential disturbance in the supply chain.
Incorrect order processing due to erroneous information will result into product recall and
reshipment if the sales opportunity still e/ists.
,aster and >uality information flow from customer to processor results into cost effective
logistics. ,orecasting and order management are two areas of logistical work dependent on
information.
,orecasting is an effort to estimate future re>uirements to position inventory or assets devoted
to inventory. +s forecasting becomes unreliable in a fast changing environment! control
strategies like :IT! Yuick 1esponse and ontinuous 1eplenishment came into being. 2ow it is
the task of the logistics function to use information technology to strengthen operation control
and forecasting to the best advantage of the organi8ation.
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#. Transportation
Transportation is the most visible of all elements of logistics and high contributor to logistics
e/penditure. osts of transportation are mainly as followsa. -ovement costsL money paid for moving material across geographical terrain
b. &reservation costsL money spent on preserving the material during transit
c. ost of idle assetL inventory is unavailable for conversion during transit. This results into
costs for organi8ation
d. +dministration costsL money spent on administrationTransportation is accomplished in three ways
a. Knes own fleet P private carriage
b. ontract with specialists on long term basis P contract carriage
c. ontract on individual shipment basis P common carriage
E3%e't+t#o)s fro* tr+)s%ort+t#o) ser2#'e +re
a. -inimum cost P transportation costs are e/plained earlier
b. )peedL speed of transport means the speed with which goods reach the destination.
c. onsistencyL consistency in speed is achieving the same speed over a long period of time.
onsistency reflects on the reliability of carrier. +ny une/pected variance can play havoc with
logistics. -odern information technology has made continuous tracking of consignments
possible. This takes the element of surprise out. IT has helped logistics managers to seek out
ways and means to improve speed and consistency. ;hat is becoming important is a
combination of speed and consistency.
1e>uirement of speed depends on type of industry. In some situations speed may not be
important. Then transportation service offering high speed increases cost. )o logistics
managers have to strike a balance between service and cost. Three important aspects of
transportation are facility location! transportation cost and consistency.
%esign of logistics system should consider total costs rather than elemental cost of
transportation
4. ;arehousing
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;arehousing is holding material before dispatch after it is produced. +lthough warehousing is
conventionally considered to be a storage facility! it plays a much higher role from logistics
viewpoint. It is perceived to be a switching facility rather than a storage facility. ;arehouse
ownership can be private! public or third party contract. ;arehouse provides economic and
service benefits to the logistical system.9conomic benefits are -ovement onsolidation! reakbulk! rossdock!
&rocessing&ostponement ? stock piling.)ervice benefits are spot stocking! assortment! mi/ing ? production support
5. -aterial handling
-aterial handling covers receiving! moving! storing! dispatching activities. It has an impact on
cost Vcapital as well as runningX! >uality and safety. Kne of the principles of material handling
is minimum movement. ommonly used material handling e>uipment are forklifts! 9KT ranes! hoists! pulley blocks! trolleys! railroad cars!
onveyors! ropes and slings etc.
3. &ackaging
&ackaging is done to make handling and transporting cost effective. It protects the product in
transit and handling. &acking is e/pected to facilitate lifting and moving by providing easy
access to forks or hooks. &acking is also e/pected to display universal symbols and other
instructions for handling.9.g. &allets and containers! wooden bo/es! wrapping etc.
Future prospects
%espite problems! The Indian logistics industry is growing at 0 vis[vis the average world
logistics industry growth of "0. )ince the organi8ed sector accounts for merely " of the
annual logistics cost! there is immense potential for growth of the sector. The ma*or opportunities
are highlighted below.
• -any large Indian corporate such as Tata and 1eliance Industries have been attracted by
the potential of this sector and have established logistics divisions. They started providing
inhouse logistics services! and soon sensing the growth of the market! have started
providing services to other corporate as well.
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• ually important as cost to remain competitive in this global economy.
• The Indian economy is growing at over 6 for the last couple of years @compared to the
world %& growth rate of #A! which implies more outputs and more demand for
speciali8ed logistics services.
• The Indian government has focused on infrastructure development. 9/amples include the
golden >uadrilateral pro*ect! eastwest and northsouth corridors @connecting four ma*or
metrosA! ,ree Trade and ;arehousing \ones @,T;\A in line with )pecial 9conomic
\ones @)9\A with "00 ,oreign %irect Investment @,%IA limit and publicprivate
partnerships @&&&A in infrastructure development. It is e/pected that infrastructure
development would boost investments in the logistics sector.
• In India! "00 ,%I is allowed in logistics whereas in hina! until recently! foreign
investment was not allowed in domestic logistics. +lmost all large global logistics
companies have their presence in India! mainly involved in freight forwarding. ,or
domestic transportation and warehousing! they have tieups with Indian companies. +s
the Indian logistics scenario looks promising! these -2s are e/pected to play a bigger
role! probably forming whollyowned subsidiaries or taking the ac>uisition route. The
latter may be the preferred route of investment since the target company is readily
ac>uired with its asset base and distribution network! and the need for buildingeverything from scratch can thus be avoided. The benefits for the ac>uired company
include the patronage of an -2 and access to the -2s global network. +s an
9/ample! %Q< %an8as! the biggest logistics company in the world! has taken over lue %art.
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M+)+-er#+$ I*%$#'+t#o)s
)tudies on logistics indicate that in this highly competitive and highcost! lowmargin business!
logistics managers have to not only focus on differentiating the services rendered by their
companies! but market the differentiating factors of their services appropriately to the clients.
They also need to make their cost structures transparent! and convince clients to foot the bill
towards investments in >uality assets and new technologies such as 1,I% and &) @lobal
&ositioning )ystemA leading to improved! and differentiated! delivery of service. )ince clients
usually prefer a singlepoint solution to all their logistical problems! managers need to broaden
the range of their service offerings! internationali8e operations and cover as many industry
verticals as possible. They may focus on key customer accounts gradually moving away from
accounts generating low! even negative! profitability. Qowever! smalltomediumsi8ed
companies that seem to have high growth potential should not be ignored in the process. In order
to become a single point of contact for clients! logistics companies may pursue ac>uisitions or
alliances! which! however! pose the challenge of integration of diverse cultures. +ttracting!
recruiting! training! motivating and retaining management talent are also a great challenge that
logistics managers need to take on @
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necessary but not sufficient conditions for success in logistics. The findings of the survey may
provide a useful guideline to logistics managers for allocation of scarce resources.
+s far as the Indian logistics industry is concerned! logistics managers of user firms need to
reali8e that! with supply chains getting more and more comple/! outsourcing part or all of their
logistical activities to e/perienced
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Ro+d fre#-ht #)dustry: The industry is highly fragmented and largely unorgani8ed. The
unorgani8ed sector accounts for nearly '0 of the market share. Qowever! changing policies
with regards to ta/ structure are likely to give a competitive edge to the organi8ed sector. 1oad
transport comprises of freight and passenger traffic. It accounts for over 30 of goods traffic and
over '0 of passenger traffic.
R+#$.+ys se'tor:
Indian 1ailways has one of the largest and busiest rail networks in the world! transporting over
"' million passengers and more than million tonnes of freight daily. It is the world=s largest
commercial or utility employer! with more than ".4 million employees. The railways traverse the
length and breadth of the country! covering 3!606 stations over a total route length of more than
3#!#7 kilometers @#6!#50 miA. +s to rolling stock ! I1 owns over 00!000 @freightA wagons!
50!000 coaches and '!000 locomotives. I1 carries a huge variety of goods ranging from mineral
ores! fertili8ers and petrochemicals! agricultural produce! iron ? steel! multimodal traffic and
others. &orts and ma*or urban areas have their own dedicated freight lines and yards. Indian
1ailways makes 70 of its revenues and most of its profits from the freight sector! and uses
these profits to crosssubsidies the lossmaking passenger sector. Qowever! competition from
trucks which offer cheaper rates has seen a decrease in freight traffic in recent years. )ince the
"660s! Indian 1ailways has switched from small consignments to larger container movement
which has helped speed up its operations. -ost of its freight earnings come from such rakes
carrying bulk goods such as coal! cement! food grains and iron ore.
4+ter Tr+)s%ort+t#o)
;ater transport can be broadly divided into two groups Inland water transport and )hipping.
)hipping! in turn! can again be divided into two categories oastal shipping and Kverseas
shipping.
I)$+)d 4+ter Tr+)s%ort+t#o):
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Inland water transport includes natural modes as navigable rivers and artificial modes such
as canals. The Inland waterways have played an important role in the Indian transport system
since ancient times. Qowever! in recent times the importance of this mode of transport has
declined considerably with the e/pansion of road and rail transport. In addition! diversion of
river water for irrigation has also reduced the importance of inland water transport. The
decline is also due to deforestation of hill ranges leading to erosion! accumulation of silt in
rivers and failure to moderni8e the fleet to suit local conditions. The transportation of goods
in an organi8ed form is confined to ;est engal! +ssam! parts of 2orth 9astern region and
oa.
%evelopment of inland water transport commenced from the )econd ,ive ]ear &lan and up
to the end of ,ifth &lan the total e/penditure on this sector was 1s. #4 crores. It was only in
the )i/th &lan that this sector was given priority and specific schemes of inter)tate and
national importance for development of inland water transport were taken up. The )eventh
&lan was an important landmark in the development of inland water transport. The
e/penditure on this sector in the &lan @at 1s. "#".'5 croresA was more than the e/penditure
incurred right up to the end of the )i/th &lan. Three ob*ectives were laid down in the
)eventh &lan for the development of inland water transport
%evelopment of inland water transport in the regions where it en*oys natural advantage.
-oderni8ations of vessels and country crafts to suit local conditions and
Improvement in the productivity of assets. The Inland ;aterway +uthority has been set up
which is a big step forward and should help in the accelerated development of inland water
transport.
Co+st+$ Sh#%%#)-L
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India has a long coastline of 7!5"3.3 kms! a number of ports @"" ma*or and "#6 minor
working portsA and a vast hinterland. Therefore coastal shipping holds a great promise more
so because it is the most energy efficient and cheapest mode of transport for carriage of
bulky goods like iron and steel! iron ore! coal! timber! etc. over long distances. Qowever!
despite this fact @and despite the fact that coastal shipping was reserved e/clusively for
Indian ships after IndependenceA! there has been a sharp decline in coastal shipping
operations. ,or instance! the number of ships fell from 67 in "63" to only 53 in "6'0 while
ross 1egistered Tonnage @1TA fell from #." lakhs to .5 lakhs over the same period.
Qowever! at the end of "664 the fleet strength was 4#' vessels of 3.# million 1T. The main
factors affecting the growth of coastal shipping adversely have been MQigh transportation
costs especially for movement other than those between a pair of water front locations! port
delays! poor turnaround time of coastal ships on account of overaged vessels! lack of
mechanical handling! facilities etc.N The coastal fleet is ageing fastU about 5 per cent of the
tonnage is already overdue for replacement. +lso! there is imbalance in coastal traffic
movement as traffic is not e>ually available in both directions. This makes it necessary for
coastal ships to sail in ballast! at times! on return *ourney. -oreover! slow handling of the
cargo at port and undue port delays inflict heavy losses on shipping! companies. It is
estimated that at present 70 per cent of ship time is spent at ports and only #0 per cent on
voyage.
O2erse+s Sh#%%#)-L
ecause of the importance of overseas shipping in international trade! considerable attention
has been paid to increase the shipping tonnage in the planning period. +s a result! the share
of Indian shipping in the transportation of India=s overseas trade has slowly and consistently
increased in the planning period. ,rom around 5 per cent in the first &lan! it increased to
around #4.0 per cent at the end of "66#64. as compared to ".6 lakh 1T @ross 1egistered
TonnageA at the time of Independence! shipping tonnage increased to 3.#0 lakhs 1T in
"664.
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In the ,irst &lan 1s. "'.7 crores were spent on shipping while the e/penditure in )econd &lan
stood at 1s. 5.7 crores. +n important step taken during the )econd &lan was the
establishment of a nonlapsing shipping development fund for grant of loans to shipping
companies for the ac>uisition of tonnage. The Third &lan made a provision of 1s. 55 crores
for shipping which rose to 1s. "#5 crores in the ,ourth &lan. The )i/th &lan envisaged the
augmentation of shipping tonnage for meeting increased re>uirements of Indias foreign
trade and also to replace the overaged tonnage especially the coastal vehicles. JThe outlay in
this plan was kept at 1s. 70 crores while actual e/penditure was only 1s. 4#.64 crores.
The resources constraint had forced the )eventh &lan to keep the outlay at 1s. 36#.4 crores
and the actual e/penditure was only 1s. 370.05 crores. The broad ob*ectives for development
of shipping in this plan were kept as followsL
-oderni8ation of fleet on the basis of improved ship designed and fuel efficiency in
engines.
1eplacement of over aged fleet on a selective basis.
%rivers fi/ation of fleet by ac>uisition of cellular container ships and speciali8ed product
carriers.
+ddition to fleet on a selective basis! keeping in view the longterm ob*ective of achieving
selfsufficiency in tanker fleet.
Ports
Indias coastline of about 3!000 km is dotted with "" ma*or! "" intermediate and "3' minor
ports. 2early 65 per cent of the countrys foreign cargo @by volumeA moves by sea and!
therefore! portsand their development assume an important place in policy making.
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%evelopment and maintenance of Indias ma*or ports are the responsibility of the entral
overnment! while Kther &orts are in the oncurrent list.
M+&or Ports:
Indias ma*or ports are governed by the Indian ports +ct "60' and the -a*or &ort Trusts +ct
"63#. The former allow the )tatutory to declare any port a ma*or port! define port limit! levy
charges etc. while the formation of &ort trust oards and vests the administration control and
management of ma*or ports in these oards.
+t the time of independence! India had five ma*or &orts! vi8. -umbai! alcutta!
Rishakhapatnam! hennai! and ochin. ;ith the Warachi &ort going to &akistan after
&artition! there were four ma*or ports on the western coast. + new port was developed at
Wandla! which was declared a ma*or port in "655. The -armugao &ort! developed by the
&ortuguese! *oined the ranks of ma*or ports in "634 after the liberation of oa in "63. &ara
deep! on the eastern coast! was declared a ma*or port in "633. 9ight years later! 2ew
-angalore and Tuticoin were added to the list of ma*or ports. The inclusion of the
:awaharlal 2ehru &ort at 2hava )heva on the western coast took the number of ma*or ports
to %evelopment of port after the independence! the development of ma*or ports was taken up
in a planned manner. -echani8ation and moderni8ations of cargohandling facilities at &orts
have been a thrust area in recent years! with emphasis on development of dedicated
infrastructure. %eepening of ports to receive lager vessels has been another priority area.
Rishakhapatnam and hennai ports have already been deepened.
M#)or +)d #)ter*ed#+te %orts:
-inor and intermediate ports fall in the oncurrent list and their administration is the
responsibility of the respective coastal states. Their number as well as their categori8ation
into minor or intermediate &orts has varied from time to time! depending upon the volume of
cargo and the number of passenger they handle. There were "" intermediate and "3' minor
ports and state wise distribution wasL Krissa! +ndhra&radesh"! Tamil2adu"0!
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&ondicherry"! +ndaman and 2icobar!
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national and international routes would give a boost to industry! +))KQ+- &resident
Renugopal %hoot said.
In spite of a reduction in freight rates! railways goods traffic saw a downward trend. 1evenue
generated from freight has declined to '.7 per cent in 00' from "" per cent in 007. The
proposed dedicated freight corridor @%,A is likely to sharply increase railways goods traffic! but
the e/treme longterm nature of the pro*ect gives air cargo the advantage! the report says.
&orts and shipping saw a gradual decline in annual growth rates from "".# per cent in 00503 to
"0.4 per cent in 00307 to 6.5 per cent in 0070'. In contrast! total air cargo traffic has
increased from "5.3 per cent in 00503 to ".5 per cent in 00307! clocking a compound
annual growth rate @+1A of 6.5 per cent for the last si/ years.
International air cargo traffic increased from 6.75 lakh tonnes in 00307 to "".0 lakh tonnes in
0070'. %omestic air cargo traffic swelled from "4.'" tonnes to "7.66 tonnes in the same
period! registering a +1 of " per cent for the past si/ years! compared to 7.7 per cent for
international cargo traffic.
The total cargo traffic of all ma*or ports increased from 4.# lakh tonnes in 00503 to 4.34 lakh
tonnes in 0070'! registering a +1 of 7 per cent. ut this lagged behind overall goods
traffic! which grew by an average "0.# per cent during the same period.
argo growth in the railways was the lowest of the three! with a +1 of 3.3 per cent over the
last si/ years. 1ailways freight traffic has increased from 3.3' lakh tonnes in 00307 to 7.3
lakh tonnes in 0070'! but the growth rate has declined from "0.6 per cent to '.3' per cent over
the same period.
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Co*%+)y %rof#$e
9/peditors is much more than getting a piece of freight from one point to another. The ouncil
of uirements.
Kur *ob is to make sure that from raw material to finished goods sitting on the retail shelf! we
provide the critical services and information necessary to give our clients a competitive
advantage in the management of their supply chains
5676 88 1 location
;e register as a single office ocean forwarder in )eattle! ;ashington as 9/peditors International
of ;ashington! Inc.
5695 88 9 locations
9/peditors become a global logistics company in :uly! when &eter :. 1ose! :ames uickly makes us one of the
largest (.).based air freight forwarder of goods from the ,ar 9ast.
569 88 11 locations
;e e/pand our (.). e/port market by hiring senior e/port e/ecutives to lead branch offices in
the (.). and key foreign markets. ;e add e/port capabilities to hicago! )eattle! 2ew ]ork! )an,rancisco and
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569; 88 12 locations
9/peditors become a public corporation with stock traded over the counter on 2+)%+Y
@symbolL 9Z&%A. %uring our first year as a public company! we report more than $50 million in
gross revenues and $." million in net earnings. ;e open our Toronto office this year! and we
now have "3" employees.
569< 88 13 locations
Kur first move into the ocean business with the ac>uisition of &ac ridge! a ma*or nonvessel
ocean common carrier @2RKA and e/pansion of less than container load @
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566> 88 32 locations
Kur russels office becomes our first in continental 9urope. ;e also open offices in Wuala
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9/peditor launches a argo Insurance division. ;e also gain a new address! on the internetL
httpLwww.e/peditors.com.
566= 88 114 locations
9/peditors name a %irector of Yuality and formali8e its global pursuit of I)K 600 certification.
+ total of 7 offices are I)K 600certified as five more offices achieve the accreditation in +sia
and 9urope. The number of employees tops #!000 @#!50A. ;e open our first offices in India!
&akistan! and angladesh. The class B+B license we hold in ei*ing is e/tended to four more
ma*or hinese trading points! bringing our total offices in hina to eight. ;hile its employees
are recogni8ed as the best trained in the industry! 9/peditors raises its minimum annual training
re>uirement for employees from #0 hours to 5 hours! in recognition of the increasingly
sophisticated needs of its customers.
5667 88 13! locations
;e add more than "!000 employees in one year! for a total of 4!500. ;e continue networking
offices on the northern and southern borders of the (nited )tates. The arrangement of offices on
both sides of the (.). -e/ico border is uni>ue among customs brokers! and this offers
unprecedented efficiency and speed in processing customs entries. The four new offices in
,rance will soon be *oined by other new locations in 9urope! as 9/peditors continues to
selectively e/pand its global network.
5669 88 149 locations
I)K 600 certification is achieved in #' offices throughout the (nited )tates! anada and
-e/ico! bringing the total number of 9/peditors offices certified in this standard to 35 in "7
countries. ross revenues top $" billion for the first time @$"!"'6!044!000A and the number of
employees tops 5!000 @5!#00A.
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5666 88 163 locations
;e celebrate our 0th year! continuing our reputation as a full service global logistics provider.
The number of employees grows to 3!4'0. 9/peditors services include +ir and Kcean ,reight
,orwarding! Rendor onsolidation! 2RK! ustoms learance! -arine Insurance!
%istribution! and other value added global logistics services. 1ecognition from our customers
@isco )ystems and ritish +irways atering name us as )upplier of the ]earA helps reinforce
the mission at 9/peditors.
?>>> 88 177 locations
This year the number of employees tops 7!000 @7!3""A! and offices are opened in &hnom &enh
and )aigon. 9/peditors places emphasis on reducing employee turnover and increasing
productivity. Improvements are made on a globally consistent -anagement Trainee &rogram and
%ocument Imaging.
Qolding strongly to the belief that you can=t buy e/cellence but have to create and nurture it has
resulted in continued success for our company. It was confirmed when 9/peditors attained the
goal of e/cellence and was given the Best ompanies to ;ork ,orB award by ;ashington 9K
-aga8ine. ut the greatest vote of confidence 9/peditors can receive is to have good customers
willing to trust 9/peditors with their important business.
?>>5 88 191 locations
This year 9/peditors was ranked third by ,ortune for +merica=s -ost +dmired companies in the
,reight %elivery industry! and the :ournal of ommerce awarded 9/peditors with the est
Intermediary award. ,orbes named the company to the list of +merica=s top 400 companies. Kur
employees made all of this possible by servicing our customers! one shipment at a time.
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?>>? 88 19 locations
,irst year with more than $ billion in gross revenues @$!63!60#!000A. ,irst year with more
than $"00 million in net earnings @$""!56!000A. 2umber of employees tops '!000. 2amed to
the 2+)%+Y "00.
9/peditors views its role in the future of international trade as the preferred global logistics
solutions company. The company will continue to satisfy its customers= needs through a
responsive! highlytrained work force! integrated information systems and a global network.
?>> 88 2"6 locations
9/peditors continues to thrive in a competitive and challenging industry and world economy.;hile other logistics companies fail to control costs and stay afloat! 9/peditors continues to
grow the number of offices! employees and total revenue! all while staying profitable. +ir argo
;orld ranks the company as the second overall freight forwarder and second in the trans+tlantic
region. In 00#! 9/peditors adds full service offices to )an :ose @osta 1icaA! Krlando @,loridaA!
+ustin @Te/asA and Tampa @,loridaA. Kur first year with more than $" billion in assets
@$"!044!07'!000A.
?>>; 88 211 locations
+ number of milestones mark our 5th yearL it=s the first year with more than $# billion in gross
revenues @$#!#"7!466!000AU the number of employees tops 6!000 @6!445AU and net earnings of
$"53!"3!000.
$"!000 invested in 9/peditors at the I&K price of $6.00 a unit @share and a warrantA is worth
$##!300 on %ecember #"! 004! @assuming warrant e/erciseA for a compound annual rate of
return of '.
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?>>< 88 226 locations
In a year of more mergers among other logistics providers and carriers! 9/peditors stays true to
its vision of organic growth! with five new locations in +sia! si/ in 9urope! two in >= 88 233 locations
-eeting key strategic goals in +sia! 9-+I1! )outh &acific and the +mericas! 9/peditors
focused on delivering a consistent level of customer service and productivity around the world.
9ntering onto the ,ortune 500 list for the first time with $4.3 billion in revenue! 9/peditors also
stood out as ,ortune=s ^" -ost +dmired ompany in its industry.
?>>7 88 247 locations
9/peditors continued to focus on delivering a consistent level of customer service and
productivity around the world. 2ew as a ,ortune 500 company with $5. billion in revenue!
9/peditors stood out as one of ,ortune=s -ost +dmired companies in their industry for 007.
?>>9 88 23 locations
ood consistent customer service has always been our goal here at 9/peditors and 00' was no
different. 9/peditors continued to open new offices and made capital e/penditures for two beautiful new offices in Qong Wong and )hanghai. &eter 1ose was named one of arrons top #0
9Ks for 00' and usiness ;eek ranked 9/peditors 2o. # on their Top 50 est &erforming
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ompanies. 006 is our #0th anniversary and we look forward to the coming year and to all the
surprises it will bring.
+wards "66#
•
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o +ffords greater fle/ibility in structuring import operations to allow the conduct of
certain customs business that is otherwise restricted.
• ;ashington 9K -aga8ine
o Kne of the best places to work in ;ashington
•
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o 9/peditors awarded ^" est )ervice ompany to )ell ,or
+wards 00#
•
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o &eter :. 1ose! 9K! is named 9/ecutive of the ]ear.
• ritish +irways
o +wards 9/peditors for outstanding service.
• &hilips
o arrier 1ecognition +ward for lobal +irfreight for the third year in a row.
• )amsung
o
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• )amsung
o 9/peditors hina receives the )amsung est &artner awards for the second year
in a row.
+wards 003
• lobal
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o 2amed 9/peditors as one of the "5 outstanding suppliers
• &fi8er
o +warded 9/peditors! Indianapolis! roker of the Yuarter
+wards 007
• lobal
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•
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o Kutstanding +chievement +ward
• )amsung
o est &artner +ward
M#ss#o) St+te*e)t
To set the standard for e/cellence in global logistics through total commitment to >uality in
people and customer service! with superior financial results.
"o+$s
To be the recogni8ed industry leader! through total commitment to customer service! by
maintaining our uncompromising integrity! in the support and development of our &eople!
ommunications and )ystems in sustained growth and profitability.
Str+te-y
+s a nonasset based company! we are able to give our clients several options for freight
management. Kur investments are made in people and systems. Through organic growth! not
ac>uisition! we give our clients and employees peace of mind knowing their day to day business
won=t be disrupted by merger painsU our systems integrity is kept intact! not disrupted by
companies whose business was founded on a different platform. Kur customers are most
interested in the >uality and consistency of service we provide regardless of the country in which
we=re doing business.
Cu$ture
A%%e+r+)'e
• &rofessionalism is at the core of our identity.
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Att#tude
• + passionate! caring and winning attitude is focused on the basics of teamwork.
Co)f#de)'e
• ;e must believe to achieve! not only in ourselves! but also in our coworkers.
Cur#os#ty
• e the type of person who wants to learn more about something.
E3'e$$e)'e
• %oing not *ust what=s e/pected! but doing the best that=s physically possible.
I)te-r#ty
• ,airness! honesty! and dignity.
Pr#de
• It=s the personal commitment we make.
Reso$ute
• )ay what you do and do what you say`
Se)se of !u*or
•
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LITERATURE REVIE4
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\ealand! while )ahay et. al.! @00#A discuss supply chain strategies and structures in India. These
surveys rank the perceived importance of some )- activities! types of hindrances and
management tools on the success of )- using representative samples! mostly from
manufacturing. Yuayle @00#A surveys )- practices in (W industrial )-9s @)mall
-anufacturing 9nterprisesA while Wemppainen and Repsalainen @00#A probe current )-
practices in ,innish industrial supply chains through interviews of managers in si/ supply chains.
They analy8e the change of )- both in terms of operational practices and organi8ational
capabilities. hin et. al.! @004A conduct a survey that e/amines the success factors in developing
and implementing )- strategies for Qong Wong manufacturers. ,eldmann and -uller @00#A
e/amine the problem of establishing an incentive scheme to furnish reliable and truthful
information in supply chains.
Wwan @"666A investigates the use of IT in )- in )ingaporean electronics and chemical
industries and finds that the top barrier to the use of IT is the lack of education and training.
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tools is still at a relatively low level. ,orecasting is the prime area for collaborative efforts.
Qowever! most firms have a long way to go to take full advantage of the promises of supply
chain integration.
Need for the study:
To study about the domestic transportation of goods its current status! challenges and
re>uirements.
O0&e't#2es of the study:
To study the current status of domestic transportation of goods.
To know the customers problems with transporters and challenges taken to overcome
those problems by customers
To know the latest technology used in domestic transportation of goods.
S'o%e of the study:
The study will help us to know the present status of the Indian logistics.
It helps to know the problems facing by the customers with transporters.
To know the modern technologies used in transportation of goods.
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RESEARC! MET!ODOLO"Y
S+*%$#)- Methodo$o-y:
• S+*%$e u)#t:
The area of survey conducted is angalore city
• S+*%$e s#/e:
)ample si8e for this pro*ect is 50 customers of manufacturing companies!
retail! pharmaceuticals! garments and telecom.
• S+*%$#)- *ethod:
I have used 2on probability sampling i.e. 1andom )ampling.Rese+r'h %$+):
In this research plan of pro*ect the study was conducted by the survey method.51 Taking sample of 50 customers of manufacturing companies! retail!
pharmaceuticals! garments and telecom by commencing sampling using the
research instrument as the >uestionnaire.?1 &ersonal interview is considered as the sample plan.1 ,or this pro*ect area of research is angalore ity.
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D+t+ 'o$$e't#o) *ethod:
I have collected the data from the following sourcesL
• Pr#*+ry d+t+:
The data collected from the company persons.
Yuestionnaires
• Se'o)d+ry d+t+:
ustomers of manufacturing companies.
Internet
Me+sur#)- too$:
,or preparing this pro*ect I have considered >uestionnaire as measuring tool for collecting the
data.
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DATA ANALYSIS AND INTERPRETATION
+fter the data have been fully prepared and entered into the computer! the tabulation
work begins. 1eaearcher should *ust prepare a plan specifying which items of data are to
tabulated and whether each item is to be tabulated separately or in combination with other items.
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TA#$E % 1
Ta&le s'o(in) t'e types o* industries+
S$1No1 I)dustr#es No1of
M+)uf+'ture
rs
Per'e)t+-e
" +utomobile?9ngineering oods
#5 70
onsumer %urables 7 "4
# 1etail 5 "0
4 Kthers # 3
Tot+$ 5>>
,-A./01
,rap' s'o(in) t'e types o* industries+
Analysis+ 0 ,rom the above table we can analy8e that ma*ority of the industries i.e. 70 of them
are manufacturers of automobile and engineering goods. ,ollowed by ne/t ma*ority of the
industries i.e. "4 of them are consumer durables. "0 of them are retail sector and remaining
3 of them are engaged in other industries like telecom! pharmaceuticals and hitech goods.
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In*erence+0,rom the above analysis we can infer that ma*ority of the industries are
manufacturers of automobiles and engineering goods.
TA#$E%2
Ta&le s'o(in) serices reuired in transportation *or manu*acturers+
S$1No1 Ser2#'es No1 of users Per'e)t+-e
" ,ull truck loads and &art loads ## 33
9ZI- container trailers "0 0
# 1ail 5 "0
4 Kthers 4
Tot+$ 5>>@
,-A./02
,rap' s'o(in) t'e serices reuired in transportation *or manu*acturers+
Analysis+,rom the above table we can analy8e that ma*ority of the manufacturers i.e. 33 of
them use full truck loads and part loads. 0 of them use 9ZI- container trailers."0 of them
use railways. +nd remaining 4 of them use others means for transportation.
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In*erenceL-,rom the above analysis we can infer that ma*ority of manufacturers use full truck
load and part load for transportation.
TA#$E % 3
Ta&le s'o(in) .art loads (ei)'t *or s'ipment+
S$1No1 P+rt $o+ds-s No1 of Users Per'e)t+-e
" "00 0 0
"0" to 500 4
# 50" to "000 "0 0
4 "000 #' 73
Tot+$ 5>>@
,-A./03
,rap' s'o(in) t'e .art loads (ei)'t *or s'ipment+
AnalysisL ,rom the above we can analy8e that 73 of the customers go for more than "000kgs!
0 of them go for 50" to "000kgs and 4 them go for "0" to 500kgs in case of part loads
weight for shipment.
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In*erenceL,rom the above analysis we can infer that ma*ority of the customers use part loads of
more than "000kgs for shipment.
TA#$E % 4
Ta&le s'o(in) t'e .remium o**er i* t'e serice leels (ere met+
S$1No1 Pre*#u* No1 of
Res%o)de)ts
Per'e)t+-e
" 5 4
"0 0 0
# "5 0 0
4 2o 4' 63
Tot+$ 5>>@
,-A./04
,rap' s'o(in) t'e .remium o**er i* t'e serice leels (ere met+
AnalysisL ,rom the above table we can analy8e that ma*ority of the customers i.e. 63 of
them wont pay a premium and only 4 of them pay a premium for transportation service.
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In*erenceL ,rom the above analysis we can conclude that ma*ority of the customers wont pay a
premium if the service levels of transporters were met.
TA#$E%
Ta&le s'o(in) pro&lems *acin) &y t'e customers (it' present set o* transporters+
S$1No1 Pro0$e*s No1of
Res%o)de)ts
Per'e)t+-e
" )hipment trackers 43 6
%amage>@
,-A./0
,rap' s'o(in) t'e pro&lems *acin) &y t'e customers (it' transporters+
AnalysisL ,orm the above table we can analy8e that ma*ority of customers ie.6 of them are
facing the problem of shipment tracking facility.4 of them are facing damageloss and
remaining 4 of them are facing with &K% confirmation.
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In*erenceL ,rom the above we can conclude that ma*ority of customers are facing the problem
of shipment tracking facility in the transporting vehicles
TA#$E%6
Ta&le s'o(in) c'allen)es taen &y t'e customers to oercome 5dama)eloss o* s'ipment+
S$1No1 Re+so)s No1 of
Res%o)de)ts
Per'e)t+-e
" Improper loadingunloading "3 #
Transportation through open truck 5 50
# ad vehicle condition 3 "
4 Improper stuffing and lashing # 3
Tot+$ 5>>@
,-A./06
,rap' s'o(in) c'allen)es taen &y customers to oercome dama)eloss o* s'ipment+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 50 of
damageloss is due to transportation through open truck! # is due to improper
loadingunloading! " is due to bad vehicle condition and remaining 3 is due to improper
stuffing and lashing
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In*erenceL ,rom the above analysis we can conclude that a ma*ority of damage loss is due to
transportation through open trucks.
TA#$E%7
Ta&le s'o(in) t'e process o* decidin) on t'e rates to &e paid *or t'e transportation
serices+
S$1No1 Ty%e of r+tes No1of
Res%o)de)ts
Per'e)t+-e
" )pot rates "0 0
1ate of contract by 1,Y #3 7
# +nnual rate contract 4 '
4 Kthers 0 0
Tot+$ 5>>@
,-A./07
,rap' s'o(in) t'e process o* decidin) on t'e rates to &e paid *or t'e transportation serices+
AnalysisL ,rom the above table we can analy8e that 7 of the respondents go by rate of
contract by 1,Y!0 of them go by spot rates and remaining ' of them go by annual rate
contract.
In*erenceL ,rom the above analysis we can infer that ma*ority of the respondents go for rate of
contract by 1,Y.
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TA#$E%!
Ta&le s'o(in) t'e mode o* transportation+
S$1No1 Mode of tr+)s%ort+t#o) No1 of
Res%o)de)ts
Per'e)t+-e
" 1oad #4 3'
1ail " 4
# +ir 4 '
4 )ea 0 0
Tot+$ 5>>@
,-A./0!
,rap' s'o(in) t'e mode o* transportation+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 3' of
them use road transportation followed by rail i.e. 4 and remaining ' by air.
In*erenceL ,rom the above analysis we can infer that a ma*ority of transportation is by road.
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TABLE 6
Ta&le s'o(in) ('et'er t'e respondents 'ae any importexport car)o+
S$1No1 S+t#sf#ed No1 of
Res%o)de)ts
Per'e)t+-e
" ]es #' 73
2o " 4
Tot+$ 5>>@
,-A./09
,rap' s'o(in) ('et'er t'e respondents 'ae importexport car)o+
AnalysisL
,rom the above table we can analy8e that large ma*ority of the respondents i.e. 73 of
them have importe/port cargo and only 4 of them do not have importe/port cargo.
In*erenceL
,rom the above analysis we can conclude that a large ma*ority of the respondents have
importe/port cargo.
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TA#$E%1"
Ta&le s'o(in) (eat'er i* yes ('at alue t'ey see in inte)rated serices o* domestic and
international le)+
S$1No1 V+$ues No1 of Res%o)de)ts
Per'e)t+-e
" ,low of information 4 4'
)ingle point of credit 4
# )avings 0 0
4
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TA#$E%11
Ta&le s'o(in) ('et'er t'e importexport decision on transportation is taen &y t'e 58ustom
/ouse A)ent8/A:+
S$1No1 De'#s#o) o) tr+)s%ort+t#o) No1 of
Res%o)de)ts
Per'e)t+-e
" ]es "' #3
2o # 34
Tot+$ 5>>@
,-A./011
,rap' s'o(in) (eat'er t'e importexport decision on transportation is taen &y t'e 58/A+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 34 of
them say that the decision on transportation is not taken by the Q+ and #3 of them say that
the decision on transportation is taken by Q+.
In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents say that
the decision on transportation is not taken by the ustom Qouse +gent.
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TA#$E%12
Ta&le s'o(in) ('et'er t'e customers are satis*ied (it' t'e transportation serices+
S$1No1 S+t#sf#ed No1 of
Res%o)de)ts
Per'e)t+-e
" ]es 4' 63
2o 4
Tot+$ 5>>@
,-A./012
,rap' s'o(in) ('et'er t'e customers are satis*ied (it' t'e transportation serices+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 63 of
them are satisfied with their transportation services and only 4 of them are not satisfied with
their transportation services.
In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents are
satisfied with their transportation services.
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TA#$E%13
Ta&le s'o(in) 'o( t'e customers deal (it' t'e c'an)e in t'e *uel price+
S$1No1 Pr#'e De'#s#o) No1 of
Res%o)de)ts
Per'e)t+-e
" &re decided as per the contract 3 "
-utual consent 44
# 2o increase or decrease given 44
4 Kthers 0 0
Tot+$ 5>>@
,-A./013
,rap' s'o(in) 'o( t'e customers deal (it' t'e c'an)e in t'e *uel price+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 44 of
them go by mutual consent!44 of respondents wont give any e/tra charges when their is
increase or decrease in the price and remaining 3 of them go as per the pre decided contract.
In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents go by
mutual consent and no e/tra charges given when increase or decrease in the price.
TA#$E%14
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Ta&le s'o(in) &y ('om t'e (are'ouses or distri&ution centers are mana)ed+
S$1No1 M+)+-e*e)t No1 of
Res%o)de)ts
Per'e)t+-e
" #rd party 44
)elf ' 53
Tot+$ 5>>@
,-A./014
,rap' s'o(in) &y ('om t'e (are'ouses or distri&ution centers are mana)ed+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 53 of the
warehouses or distribution centers are managed by self and 44 of them are managed by # rd
party peoples.
In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents say that
the warehouses are managed by self.
TA#$E%1
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Ta&le s'o(in) (eat'er t'e (are'ouse or distri&ution center dc: and t'e transportation is
mana)ed &y t'e same serice proider+
S$1No1 M+)+-e*e)t of
DCTr+)s%ort+t#o)
No of
Res%o)de)ts
Per'e)t+-e
" ]es 4
2o 4' 63
Tot+$ 5>>@
,-A./01
,rap' s'o(in) (eat'er t'e (are'ouse or distri&ution center and transportation is mana)ed
&y same serice proider+
AnalysisL ,rom the above table we can analy8e that ma*ority of the respondents i.e. 63 of
them say that the warehouse or distribution centers and transportation services are not managed
by same service provider and only 4 of them are managed by same service provider.
In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents say that
the warehouses or distribution centers and transportation services are managed by same service
provider.
TA#$E%16
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Ta&le s'o(in) ('et'er t'e )oods are insured &y customers+
S$1No1 "oods #)sured Per'e)t+-e
" ]es "00
2o 00
Tot+$ 5>>@
,-A./016
,rap' s'o(in) ('et'er t'e )oods are insured &y customers+
AnalysisL ,rom the above table we can analy8e that large ma*ority of the respondents i.e. "00
of the goods are insured by customers.
In*erenceL ,rom the above analysis we can conclude that "00 ma*ority of the respondents
say that the goods are insured! without insurance they wont transport.
TA#$E%17
Ta&le s'o(in) t'at i* t'e )oods are insured t'en on ('ose ris+
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S$1No1 De'#s#o) o) r#s No1 of
Res%o)de)ts
Per'e)t+-e
" Its an open policy 44
Kwners risk "5 #0
# arriers risk "# 3
4 Kthers 0 0
Tot+$ 5>>@
,-A./017
"r+%h sho.#)- th+t #f -oods #)sured the) o) .hose r#s:
AnalysisL
,rom the above table we can analy8e that ma*ority i.e.44 of the customers go for open
policy!#0 of them on owners risk and remaining 3 of them on carriers risk.
In*erenceL ,rom the above analysis we can conclude that ma*ority of the respondents go for
open policy.
FINDIN"S
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-a*ority of the respondents i.e. @70A of them are manufacturers of automobile and
engineering goods.
-a*ority of the respondents i.e. @33A of them use full truck loads and part loads.
-a*ority of the respondents i.e. @73A of the customers go for more than "000kgs of part
loads for shipment.
-a*ority of customers i.e. @6A of them are facing the problem of shipment tracking
facility.
-a*ority of the customers i.e. @63A wont pay a premium if the service levels of transporters
were met.
-a*ority of the respondents i.e. @7A of them go for rate of contract by 1,Y.
-a*ority of respondents i.e. @3'A of damage loss is due to transportation through open
truck.
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-a*ority of the respondents i.e. @44A of them go by mutual consent and no e/tra charges
given! when increase or decrease in the price.
-a*ority of the respondents i.e. @53A of them say that the warehouses are managed by self.
-a*ority of the respondents i.e. @63A of them say that the warehouses or distribution
centers and transportation services are managed by same service provider.
-a*ority of the respondents i.e. @"00A of them say that the goods are insured! without
insurance they wont transport.
-a*ority of the respondents i.e. @44A of them go for open policy! while deciding on the risk
factor.
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SU""ESTIONS AND RECOMMENDATIONS
+fter the study! it can be interpreted that domestic transportation has to improve in all the
aspects of this logistics industry. Qowever as a continues improvement e/ercise! the following
points highlighted may be looked into.
• )ince much of domestic transportation is done through road! the transporters should offer
customerspecific transportation and 1eady solutions to part load or full truck load
transportation. The availability of the right e>uipment! at the right place and at the right
time! is what defines their uni>ueness and it results in shorter leadtimes and more
reliable flow of goods.
• Timely delivery services with accuracy and reliability in both domestic and crossborder
deliveries should be the main task of transporters and persistent effort should be made to
make the consignment available on the committed date and time! at a reasonable cost and
with due consideration to safety.
• ustom clearance forms a ma*or part in the uipments like fork lift and
belt conveyors should be used.
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CONCLUSION
+fter the study! we can come to a conclusion that! domestic transportation has to improve
in all the aspects of Indian logistics industry! the logistics industry can still strengthen its position
by looking into the following.
• -any customers are facing the problem of delivery service becauseU the transporters are
not delivering the goods on time. Qence timely delivery services with accuracy and
reliability in both domestic and crossborder deliveries should be the main task of
transporters and persistent effort should be made to make the consignment available on
the committed date and time! at a reasonable cost and with due consideration to safety.
• -a*ority of customers are facing the problem of shipment tracking facility in transporting
vehicles so a tracking tool called &1) system should be adapted to measure! record and
transmit parameters like date! time! speed and location to the command centre using the
local )-&1) network. The system automatically switches over to )-) wherever
&1) coverage is not available.
• In India ma*or transportation is through open trucks hence there is increase in
damageloss when the goods e/posed to atmosphere. )o closed trucks like canters and
container transportation will be a better alternative.
• -any of the goods are damaged due to improper loadingunloading! stuffing and lashing
hence proper material handling e>uipments like fork lift and belt conveyors.
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BIBILIO"RAP!Y
Refere)'e Boos
Indian logistics %r. 1aghuraman
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Guest#o))+#re Do*est#' '+r-o I)d#+
De+r S#rHM+d+*
%ateL
ompany nameL
&erson contactedL
%esignationL
ontact numberL
". ;hat are the type of commodities do you deal inO
. ;hich is the industry verticalO
+utomobiletelecom&harmaceuticals,-9ngineering goodsonsumer durablesQitecharments1etail
Kthers @specifyA
#. ;hat are the type of services do you re>uire in transportationO
• 9ZI- container trailers &ort to factory% and vice versa
• % trailers +nywhere to anywhere
• ,ull truck loads @,T
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4. Incase of part loads! typically how much is the weight for shipmentO
aA"00kgsU bA"0" to 500kgsU cA50" to "000kgs dA"00"kgs
5. &lease provide the list of top 5 lanes and shipment volumes
3. ;hat do you e/cept in terms of service levels from a transporterO @wish listA
7. ;ould you pay a premium! if these service levels were metO If yes! how muchO
aA5 bA"0 cA"5 dA0 eAotherL
'. ;hat are the top # M&roblemsN you face with the present set of transportersO
• )hipment trackers• )ecurity
• %amage
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"0. Windly describe the process of deciding on the rates to be paid for the transportation
services
• )pot rates• 1ate contract by 1,Y
• +nnual rate contract
• KtherL
"". Qow much is monthly spend @in I21A on transportation by road! air and rail
respectively.
". %o you have any importe/port cargoO If yes what value do you see in integrated
services of domestic and international legO
• ,low of information
• )ingle point of credit
• )avings
•
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"3. %o your products need any warehousing or distribution centre in IndiaOIf yes!
Windly provide the location and the space re>uirements.
ftAL
"7. These warehouses or distribution centers are managed by!
• #rd party
• )elf
"'. Is the warehouse or distribution centre and the transportation managed by the same
service providerO
]es2o
"6. If no why notO
+dvantage %isadvantage
0. If yes! whyO
+dvantage %isadvantage
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