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INTRODUCTION 1.1 GROWTH IN LOGISTICS- AN OVERVIEW Logistics call for an understanding of the totak supply chain, the elements of which include inventories, packing, forwarding, freigh, storage and handling. Logistics is responsible for all the movemtn that takes place within the organisation whwther it is inbound logistics of incoming, raw materials or movemtn within the company or the physical distribution of finished goods, logistics encompasses all of these. Tupicsl logistics framewors mainly consists of Physical Supply, Internal Operations and Physical Distribution of Goods and Services. To put it more simply, the material supply logistics starts from the base level of “generation of the demend”, through the “process of purchase” and “supply of materials from the vendor” right through to “final accecptance” and “payments to supplier” and “issue to indenter” and has to be considered as a “one whole activity” with each stage having an impact on price/cost of material supply.
Transcript
Page 1: supply chain network

INTRODUCTION

1.1 GROWTH IN LOGISTICS- AN OVERVIEW

Logistics call for an understanding of the totak supply chain, the elements of

which include inventories, packing, forwarding, freigh, storage and handling.

Logistics is responsible for all the movemtn that takes place within the

organisation whwther it is inbound logistics of incoming, raw materials or

movemtn within the company or the physical distribution of finished goods,

logistics encompasses all of these.

Tupicsl logistics framewors mainly consists of Physical Supply, Internal

Operations and Physical Distribution of Goods and Services. To put it more

simply, the material supply logistics starts from the base level of “generation of the

demend”, through the “process of purchase” and “supply of materials from the

vendor” right through to “final accecptance” and “payments to supplier” and “issue

to indenter” and has to be considered as a “one whole activity” with each stage

having an impact on price/cost of material supply.

Logistics is, in itself, a system; it is a network of related activities with the

purpose of managing the oderly flow of material and personnel within the logistics

chain.

DEFINITION

The simplest way to describe the logistics is to say that it is all about ways

and; meeting the demand for materials i.e. satisfying the customer with what he

wants, where he wants etc.

The most wide spread definition from Council of Logistic Management says

“Logistics is the part of the supply chain process and plans, implements and the

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efficient, effective flow and storage of goods, services and related :ion from point

of origin to the point of consumption in order to meet srs requirements”.

The study of logistics is especially important for bulk raw materials, where

substantial outflow of freight is involved. Management of Logistics is an art which

is extremely difficult to perfect in India, JIT ends up being SHIT – somehow in

time.

The study of logistics is important to establish a lean supply chain would

give an advantage of quick product change over, capability, excellent short and

long term forecast visibility and JIT facility.

MODES OF TRANSPORTATION IN LOGISTICS

In order to transport material from one place to another place to another

Logistics Managers are using Ril, Road, Air, & Pipe Line as the modes of

transportation. A logistics expert need to understand these modes based on

priorities, product type, lead time etc to decide the approximate mode of

transportation.

Rail: Used for delivery of a wide range of goods including coal, iron ore, cement,

food grains, fertilizers, steel, petroleum products and other heavy goods.

Road: Used by suppliers to deliver goods in a cost effective manner and best

suited for short distances. Many transport companies have expertise for fast

delivery, packaging etc for making scheduled delivery.

Air: used commonly for delivery of high value and low volume goods from

distant suppliers, usually not connected by any other mode of Transportation, it is

also suitable for emergent item to be imported for some specific requirement.

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Water: used by firms for delivery of goods from distant suppliers, mostly

conducted in containers of varied size. This mode is idea! for transportation of

heavy and bulky goods and suitable for products with long lead times.

Pipe Line: Used by oil sector companies for mass movement of Petroleum

products including gases. Due to quite low operation cost it is one of the preferred

modes of transportation.

THIRD PARTY LOGISTICS

Third Party Logistics (3PL) provider handles all or most of freight of the

organizations including the management of information by the third party, freeing

the company from day to day interaction with carriers, and having to oversee

hundreds or thousands of shipment. New and cheaper information flow resulting

from internet enabled solutions, will not only achieving immediate cost reductions

in operations but also to enormous productivity gains over the next few years.

The tracking and control of movement of goods drive freight optimization

and asset utilization. The options are increased trailer utilization, combining full

truckload shipments, consolidation, and aggregation of small buyers. Purchase

asset based transportation is becoming increasingly a commodity.

To put simply, 3PL refers to the outsourcing of a logistics function, it could

be the use of a transportation carrier, a warehouse, or a third party freight manager

to perform all or part of a company’s production distribution function.

The principle reasons of for this function are as under:

Globalization of sourcing, manufacturing and distribution leading to an

increase in the complexity of material movement.

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Competition that has forced companies towards more responsiveness and a

reduction in inventories. An increased need for small but frequent shipments

with 100 percent reliability, requiring core competence in logistics

management.

Resource constraints that require companies to concentrate only on their

core manufacturing or new product development activities.

FOURTH PARTY LOGISTICS:

Fourth Party Logistics (4PL) provider is a supply chain integrator that

assembles and manages the resources, capabilities and technology of its own

organization with those of complementary service provider to deliver a

comprehensive supple chain solution.

4PL is emerging as a path to achieve more than the one time operating cost

reductions and asset transfer of a traditional outsourcing arrangement. Through

alliances between best-of-breed third party service providers, technology

providers and management consultants.

4PL can be described as the complete outsourcing of the logistics function

including procurement of the service providers. 4PL companies are suppliers

which have the expertise to manage resources, value delivery process and

technology for their clients in order to allow their clients to totally outsource

their logistics activity. The 4PLs do not compete with 3PLs as they have

superior expertise in their respective fields by virtue of their investment and

specialization.

4PL providers do not own assets for transportation or warehousing, but

rather leverage the solutions created by 3PL providers, in order to identify and

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provide ‘best in class’ services to their clients. There are many variations of the

4PL model that are practiced.

Three different models are summarized as under;

1. Lead logistics provider: The 4PL provider acts as an in house freight

management company, it might or might not have a role in the selection

of 3PL partners. It takes care of transport invoicing and the monitoring of

the perfornmane of the 3PLs

2. Solution Integrator: In this variant of the model, the 4PL acts as the

integrator of various 3PLs and as a single window for freight

negotiations, 3P1 selection and freight management on behalf of its

client.

3. Industry Innovator: Under this modle the 4PL uses its expertise and

resources to create a solution not for any single client, but for offering

4PL services to a number of clients in an industry.

The services provided by a 4PL provider are:

Freight Negotiations with 3PLs

Freight Contract Management

Continuous Improvement Programs

Management of Service Providers

IT solutions

Risk management and insurance

Cash-flow Management

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RESERVE LOGISTICS

Increasingly, as a strategy, to compete on services, companies offer repair

replacement services for their products under the warranty periods. The products

are often shipped across international borders to common repair 3 be refurbished

and returned to the originating station.

Logistics service providers who offer these services have to tackle issues

pertaining payment on refurbished products, customs documentation and the

establishment of collection points for repair for the customers.

ESTIMATE

As per the World Bank’s estimate, a unit in GNP in India generates increase

of 1.5 times in freight transport demand. The rapid economic growth on set of the

lliberalization in the last decade has substantially increased the potentiality of

transportation in India. To cope with the expected rise in demand, investments

have been made in last few years. Opening up of Indian economy has opened the

doors for private sector participation; however, the response level is not on par

with the expectations.

Estimated increase in the output of the basic industries is like to create

substantial demend for bulk transportation. With the expected annual growth of

Indian economy likely to cross 10 percent mark in near future, transportation

demand is also likely to rise substantially and estimated to become double in next

ten years.

A reduction in logistics costs by one percentatge point will mean a saving of

$4.8 billion or Rs. 21,600 crores annually.

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The Indian logistics industry has now transformed from conventional

transportation to integrated logistics solutions. The scope for outsourced logistics

in India is growing at a tremendous rate as companies are realizing that

outsourcing logistics has become cost effective for them. The logistics of a

company is greatly influencing the profitability and the customer satisfaction. The

logistics related expenditure in India stands at 12-15% of GDP, which is much less

than the developed countries. But the trend is emerging and it leads to grow in the

country. The size of the organized segment accounts for Rs.50000 crores, the

industry is fragmented and is growing at a rate of 12-15% and is estimated across

20% in the next 5 years due to the rapid growth of e-commerce and the Internet in

India.

India being touted as ‘Destination Future’ for the logistics service providers

all over the world. Indian players are also gearing up and positioning themselves

differently by providing a wide spectrum of logistics services. Whilst unlocking

the hidden value of logistics is a major challenge, the true potential and the

opportunities that exist need to be fully assessed.

TRENDS IN PORT TRAFFIC

The long coastline of India is dotted with 11 major ports that are managed

by the Port Trust of India under Central Governement jurisdictiona and 139 minor

ports under the jurisdictions of the State Governemtns. The ports are located at

Culcutta/Haldia, Mumbai, Jawaharlal Nehru Port at Nhava Sheva, Madras, Cochin,

Vishakhapatanam, Kandla, Mormugao, Paradip, New Mangalore and Tuticorin.

The mojor ports handle 90% of the all-india port through put, and thus bear the

burnt of sea borne trade. During 1996-97, the total cargo handled at major ports

was 227.13 million tones, registering a growth of 5.6% over 1995-96. Dry and

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liquid bulk make up about 80% of the port traffic in colume with general cargo,

including the containerized cargo, constituting the remaining traffic.

The predominant commodities handled at these ports are POL (42%), Iron

ore (18%), Coal (15%), Containers (8%), Fertilizers (5%), others (12%). Major

increases in traffic were observed in respect of food grains (26.7%), other liquids

(33.3%) and containerized cargo (19.1%). The composition of traffic has

undergone significant changes in recent years. Berths in India, very often, are

occupied 100% leaving no time for maintenance.

PROBLEMS FACED

Logistics continue to attract a low client spend in India. The industry also

suffers from inadequate infrastructure, complex tax laws and insufficient

technological aids. This is partly due to the fragmented nature of the domestic

industry. A number of players offer only one or two services out of the gamut of

products comprising transportation, warehousing, freight, forwarding, express

cargo, delivery, courier services, container services, shipping services etc.

FUTURE

The challenge for logistics provides will! Be to add value via improved

collaboration and visibility within the whole supply chain. An efficient Supply

Chain enables buyers, manufacturers and service providers to collaborate on

product forecasts and product flow. The implementation of e-procurement

platforms as well as replenishments systems is expected to grow in the near future.

Logistics service providers are using e-commerce due to cut costs and move

goods and services both smarter and faster in a real time environment. Electronic

Data Interchange (EDI) has been widely used in all sectors since many years.

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Internet base EDI is starting to be adopted o SMESs. Linked to it are the electronic

funds transfers and wireless applications, which are essential in applications such

as tracking systems.

The trends of visibility and collaboration through the whole supply chain,

the supplementation of e-procurement platforms as well as replenishments systems

are expected to grow in the near future.

Since it is not practical to exchange substantial product flow and other

demend driven data between various players via EDI technologies, Internet is

extremely well suited for this type of application it is anticipated that internet based

collaborative tools and standardized protocols will continue to accelerate in the

future. Their adoption by Indian logistics service providers is essential to gain a

competitive edge.

1.2 INDUSTRY PROFILEFREIGHT FORWARDER

The service of a freight forwarder is often needed in the export process. This

person advises clients in the logistics of how to transport goods to or from any area

in the world. Freight forwarders are familiar with the import laws of foreign

countries and make sure that the export’s shipment of goods compiles with those

foreign laws and that all paperwork is certified by the proper authorities. A freight

forwarder will locate the best or mose inexpensive vessel to transport the exporte’s

shipment of goods and to make certain that these goods get from the exporters to

their destination. In addition, the professional forwarder is aware of the constantly

changing regulations which affect cargo movements, such as foreign

documentation requirements, hazardous materials rules, special packaging or

handling restrictions, and any applicable licensing provisions.

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TYPES OF FREIGHT FORWARDERS

Ocean freight forwarders which are licencsed by th Federal Maritime

Commission (FMC).

International air cargo agents which are accredited by the International Air

Transportation Association (IATA).

The manner in which goods are transported (air freight or ocean shipping)

depends upon the type, weight and size of the cargo, required speed of delivery,

destination, and cost. Goods that are being shipped overseas must be properly

3ed and marketed. In deciding what packing method is a best, exporter must

consider the tyope, weight, destination, and the mode of shipment of goods as

well as the 3ed protection against breakage, moisture abd theft. The freight

forwarder will e invaluable advice as to the best way goods can be transported

overseas.

international or multinational import and export. While the freight

forewarder doesn’t actually move )he freight itself, it acts as an intermediary

between the client and various transportation services. Sending products from

one international destination to another can involve a multitude of carrires,

requirements and legalities. A freight forwarding service handles the

considerable logistics of theis task for the client, receiving what would

otherwise be a formidable burden.

Freight forwarding services guarantee that products will get to the proper

destination by an agreed upon date, and in good condition. The freight

forwarding service utilizes established relationships with carriers of all kinds,

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from air freighters and trecking companies, to rail freighters abd ocean liners.

Freight forwarding services negotiate the best possible price to move the

product along the most economical route by working out various bids and

choosing the one that best balances speed, cost and reliablilty.

A freight forwardnin service generally provides one or more estimates to the

client along with advisement, when necessary. Considerations that effect price

will range from origin and destination to special requirements, such as

refrigeration or, for example, transport of potentially hazardous materials.

Assuming the client accepts the forwader’s bid, the freight is readied for

shipping. The freight forwarding service then undertakes the responsibility of

arranging the transport from point of origin to destination.

One of the many advantages of using freight forwarding is that it handles

ancillary services that are a part of the international shipping business.

Insurance and customs documentation and clearance are some examples. As a

consolidator, a freight forwarding service might also provide Non-Vessel

Operating Common Carrier (NVOCC) documentation, or bills of lading,

Warehousing, risk assessment and management, and methods of international

payment are also commonly provided to the client by the freight forwarding

service.

A good freight forwarding service can save the client untold time and

potential headaches while providing reliable transportation of products at

competitive rates. A freight forwarding service is an asset to almost any

company dealing in international transportation of goods, and is especially

helpful when in-house resources are not versed in international shipping

procedures.

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CUSTOMER SATISFACTION

Another trend that is having an impact upon the logistics supply chain is the

customer service/ customer satisfaction emphasis of most companies. It has

long been recognized, that measures of service levels are important in

ecaluating the performance. Some traditional measures have been length of

order delivery cycle; order shipment times, percentage of order shipped

completely and so on. Now the focus is more on the customer, woth measures

of service and being aimed in that direction, for example the very best

companies utilize such measures as percentage of orders delivered on time,

percentage of service received complete(without any loss or damage),

percentage of orders billed accurately and so on. On result of this customer

service focus is that transportation services receive more attention and

transportation companies are frequently viewed as partners providing higher

levels of customer service. This has frequently necessitated sharing of data

between shippers and carriers.

1.3NEED OF THE STUDY

The logistics industry as such is heavily competitive in nature with all players

trying various strategies to gain a hold of the market. In this scenario, the company

wants to gain knowledge of their customer satisfaction level and the problems

existing which would enable the company to acquire new markets.

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Retaining customers is very important for companies in a service-oriented

industry. This survey was also conducted to know where Freightlinks International

India Pvt. Ltd services stand in the minds of the Clients, so as to take adequate

steps, if necessary, to become the first choice for the exporters and importers.

1.4 SCOPE OF THE STUDY

The retiainin based survey will help in increasing the service levels of

Freightlinks International India Pvt. Ltd, among their clients and will help them to

know what the clients are expecting from then. It will also help the organization o

know about the additional services that need to be done, which on completion, will

result in the better service offered. This will resukt in improved productivity, cost

reduction and increased revenue for Freightlinks International India Pvt. Ltd

The study will also give the level of satisfaction of active Cochin clients in the

areas of Communication, Rates, etc., which will help the organisation to know

what is their existing service level and take actions, if necessary, to improve the

service levels. The scope of the study is limited to clients of Cochin.

1.5OBJECTIVES

Learning the Working of Logistics Service Provider.

To find the satisfaction levels of Cochin clients regarding the services

provided by Freightlinks International India Pvt. Ltd service provider.

Identify the problmes faced by the customers and their future

expectations.

1.6 LIMITATIONS

It is at the discretion of the respondent to givve the right feedback.

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The exporters were very busy and getting an appointment from them was

very difficult.

Most of theexporterds were located in varied places outside the survey

area and adding to this long distance of travel, made the researcher to

deviate from the planned schedule.

1.7 RESEARCH METHODOLOGY

RESEARCH DESIGN

Descriptive research design and analytical research method is used for the study.

POPULATION

The exporters/Importers, who are Direct Customers of Freightlinks International

India Pvt. Ltd., constitute the population.

SAMPLE SIZE

A sample of 24 Clients was taken based on the clients they serve.

SAMPLING METOHD

The survey employeed non-probability convenience sampling method

SURVEY AREA

The survey was conducted in Cochin City.

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TOOLS FOR DATA COLECTING

PRIMARY DATA

The primary data was collected using an interview schedule with the aid of

structred questionnaire prepared with respect to the objective of the study. The

questionnaire had both opne ended and close questions.

SECONDARY DATA

Secondary data regarding the industry, company and products were obtained

from the internet.

Company publications.

Books.

ANALYTICAL TOOLS USED FOR ANALYSIS

Percentage Analysis.

Cross Tabulation.

Non Parametric Freidman Test.

1.8 CHAPTER SCHEME

The researcher details the study on customer satisfaction of Freightlinks

International India Pvt. Ltd., under five distinct chapters.

The first chapter briefs about logistics and also about the need, scope, objective,

research methodology adopted and the limitation of the study.

The second chapter talks about the organisational profile, it explains the various

services rovided by the company.

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The third chapter deals with the analysis and interpretation of data. Various

charts and tables have been attached for easy and better understanding.

The fourth chapter deals with the findings, suggestions and conclusion of the

study.

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2. COMPANY PROFILE

FREIGHTLINKS INTERNATIONAL INDIA PVT LIMITED

2.1 INTRODUCTION

The modern day International Trarnsportation poses the importer and the exporter

a very wide range of challenges and extremes founnd in few other industries.

Finding a cost effective solution to such a challenge is the objective of Freightlinks

International India Pvt. Ltd.,.

Whatever the logistics needs of your company, they have just the right kind of

solution for you. They make ends meet by offering solutions in a wide spectrum of

area comprising forwarding, customes broking, project shipments, logistics

management & distribution and intermodal transport solutions. With powerful

agents spread all over the world, Freightlinks International India Pvt. Ltd., is

committed to providing customers with top class services to any corner of the

globe.

Freightlinks International India Pvt. Ltd., is manned by a Management Team

who has collectively over 100 years experience in the Transportation and Logistics

business. The company is networked nationally with offices located at all the

metros and important business cities.

Trium Logistics India Pvt. Ltd., is a registered India M.T.O with a very sound

experience, computer integrated system and a very comprehensive network of

associates and agents covering the entire world. They have a proactive approach to

solving all logistcs and distribution needs and therefore deliver anywhere and

everywhere consistently. Their tachnological and human resources are put to work

to meen the growing demand of the international transportation needs.

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Freightlinks International India Pvt. Ltd., was amongst the few companies in

India to be authorised to issue its own Bill of Lading. It is also one of the very few

companies you would find who offer door to door insurance cover whilst carrying

your cargo.

Their progress from inception in 2000 is outlined below

Pioneered the NVOCC Inter Modal Transportation in India.

Established the NVOCC operations.

Director General of Shipping granted the MTO License.

Became the earliest Indian MTO to be a FMC Bonded operator.

Established credentials as Projectr forwarders.

Expanded the office network to cover New Delhi, Tiruppur, Coimbatore,

Moradabad, Badohi, besides the already established offices in Cochin,

Chennai, Bangalore and culcutta.

Expanded into Air Freigh forwarding. Handled major shipments including

the prestigious Michael Jackson Show.

Became an IATA Licensed Air Cargo Agent.

Became a licensed Custom House Agent.

Obtained brea-bulk license to handle air import consolidation.

Their above growth has been possible only because the considered their people

as their strength. An Equal Opportunity E their employee strength is over 130 in all

their 9 offices situated all c qualified staff, an upto date Computer systems,

Communication facilities commited Customer Service, they are today a well

respected organisation in the indusrty.

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With its state of the art computer hardware and software; up gradation of its IT

resources. Freightlinks International India Pvt. Ltd., in association with its global

partnesr offer the most satisfying service with periodic reports on work status.

Now customers can enjoy the value of Freightlinks International India Pvt. Ltd.,

transport solutions. Now Freightlinks International India Pvt. Ltd. caters to your

individual needs, to organize logistic all transportation needs by gaining buyer’s

confidence and by sharpening competitive edge in the global market place.

2.2 VARIOUS SERVICES PROVIDED BY THE COMPANY

DOOR TO DOOR:

Freightlinks International India Pvt. Ltd., effective network of associates across the

globe, their computerized E-mail! System and excellent relationship with all

carriers ensures a sure and safe delivery of consignemnts to every corner of the

globe, irrespective of their shape and size.

Their door to door services is comprehensive and takes into accounr every cost

factor. They not only provide their custimers cost savings at every step but also

continuously strive to improve the quality of their services. Their door to door

service is not limited to containerized cargo alone. Break-bulk Over deimensional

Project Cargo etc. all can be transported with care and efficiency.

Very few Indian MTOS can pride in issuing a M.T., document which has a

thorough insurance backup for a door to door transoprtation. The Freightlinks

International India Pvt. Ltd., M.T Document is fully covered for insurance.

FREIGHTLINKS INTERNATIONAL INDIA PVT. LTD operates from all

metros, major ports, and export centres.

LCL CONSOLIDATIONS

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They offer a weekly consoidation service for all LCL shipments from and to

India. Over 400 destinations world wide are covered through the Hub ports of

Antwerpa and Singapore. They will continuously endeavor to consolidate direct

containers to individual regions thereby reducing transit times and costs. They take

pride in being able to provide a fail proof inbound and outbound consolidation

service ti Indian exporters and importers. Where ever consignes are they deliver

right through to his door. A remote country in Eastern Europe or the smalles island

in the Caribbean, they deliver without much trouble.

CARGO MANAGEMENT

Continuing the concept of door to door service they have learned up with IME of

the beast project cargo movers in the world to provide a complete packaged service

to entrepreneurs who import plant and machinary into India. Their expertise the

field of project cargo is quite significant and provides a comprehensive service

Indian companies who are setting up project overseas. They offer packing,

documentation, shipping, customs clearance, insurance, and delivery to sire all

under one roof.

AIRFREIGHT:

They offer a weekly consolidation service for all LCL sjipments from and to India.

Over 400 destiunations woldwide are covered through the Hub Ports of Antwerp

and Singapore. They will continuously endeavor to consolidatie direct containers

to individual regions thereby reducing transit times and costs. They take pride in

being able to provide a fail proof inbound and outbound consolidation service t

Indian exporters and importers. Where ever cosnsignees are they deliver right

through to his door. A remote country in Eastern Europe or the smallest island in

the Caribbean, they deliver without much trouble.

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DOMESTIC INTERMODAL:

As pioneers in this segment of the transportation services, they take pride in

offering the large Indistrial houses a very cost effective and complete distrinbution

system for their products within India. With sound software backup they provide

this distribution services grade wise, batch wise etc. as the manufacturers may

require.

By providing containarized transportation on decided rail service they cater to bulk

movement of high density as well as voluminous cargo. This system not only

brings about considerable cost savings but also safeguards the cargo against

pilferage and theft.

NVOCC SERVICES:

Our NVOCC services cater to the large exporters and importers who

predominantly ship FCL loads. They provide the most competitve rates and

services from and to India. Their strength as a leading International Forwarder

combined with the strengths of their world wide associates enables them to obtain

the most competitve rates from leading carriers. Thei philosophy of door to door

services is well pronounced in this form of transportation too.

VALUE ADDED SERVICES:

Their services go beyond the mere transportatiuon activities. They assist their

shippers in the post shipment documentation, documents transfer, order follow up,

temperory warehousing, marking, numbering insurance brokerage etc. In short

they ensure that the exporter concentrates exclusively on producing quality

products. They strive to provide him with a high degree of service which will go a

long way in enhancing the quality of his product.

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OCEAN TRANSPORT:

Their services go beyond the mere transportation activities. We assist our shippers

in the post shipment documentation, documents transfer, order follow-up,

temperory warehousing, marking, numbering insurance brokerage etc. In short

they ensure that the exporter concentrates exclusively on producing quality

products . they strive to provide him with a a high degree of service which will go

a long way in enhansing the quality of his product.

Freightlinks International India Pvt. Ltd., range of services broadly specified

generally should cover customers complete logistics needs.

International Forwarding by Sea and Air.

Custom Clearance.

Project Forwarding bot Exports and Imports.

Logistics Distribution Management services.

NVOCC & LCL consolidation both to & from India.

Air imports consolidation.

Household goods packinf and removals.

Storage and Warehouse services.

To facilitate them to perform these functions they are:

Indian Government approved Multimodal Operator.

FMC bonded for trade to & from USA.

IATA & FIATA members.

Licensed for break bulk import air consolidation.

Liccensed Custom House Brokers.

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2.3 SPECIAL SERVICES

EXPORT ORIENTED UNIT (EOU)

Freightlinks International India Pvt. Ltd., has been involved in the entire export

logistics for an EOU since its inception of this plant in April 1994. In order to

provide dedicated logistic services a team of 5 personnel are full time based at the

clients plant.

JOB RESPONSIBILITY IS DETAILED BELOW:

Preparation of pre-shipment export documentation for customer viz. packing

list, Invoice, Contract etc.

Preparations of all export shipment documents like shipping bille, certificate

of origin, GSP certificate etc.

Processing of Export documents with local cusoms co- ordination for

transportation of empty containers to plant site.

Co-ordination for lifting of all laden containers on completion of each lot.

Co-ordinate with Carriers for space requirement on feeders/ main line

vessels.

Co-ordinate for release of bills of lading, freight certificate with Carriers.

Complete all necessary Post Shipment documentation for submission to

bank.

Monitor transshipment of containers at transshipment port, and delivery at

final destination with shipping lines on a regular baisis.

Maintain and submit weekly reports to clients, as well as their International

partner’s offices worldwide on shipment status of all cargo.

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PROJECT SHIPMENT

They have recently completed their assignemtn as Logistics Mangager for the

movement of a Cold Rolling Mill, the planning of which began in early 1995.

SHOW FREIGHT OPERATIONS:

The company does freight operations for various shows. For Michael Jackson’s

show in Bombay the company managed the Logistics handling. The equiment’s

were transported in 3 x An124 Antanov aircraft each of about 100 capacity.

LIVE ANIMAL TRANSPORTAION

They take pride in being the first Indian forwarder to organise the Sir

Transpotation of 4 Baby Elephants for a Safari Park in UK. In close co-

ordination with their overseas agents they have completed the formalities for

the export of these animals by Air. The job involved co-ordination with

quarantine department. Airline, Airport Authority, Customs and the transporter.

The time sensitive and delicate shipment was completed to the full satisfaction

of their clients on more than one occasion.

BUYER’S CONSOLIDATION:

This is a service rendered to Large Buyers from overseas who buy vaired

quantities from several vendors located at various places within India.

Page 25: supply chain network
Page 26: supply chain network

3. ANALYSIS AND INTERPRETATION

TABLE: 3.1

TYPES OF INTERNATIONAL TRADER

Particulars No of Respondents PercentageExporter 8 33.3

Importer 2 8.3

Both 14 58.4

Total 24 100

Interpretation

The above table depicts that out of the 24 companies surveyed, 8 are export companies which accounts for 33.3% of the total respondents. This is followed by 8.3% of the respondents who deals with imports. The majority of the respondents about 58.4% deals with both exports and imports.

Page 27: supply chain network

CHART: 3.1

TYPES OF INTERNATIONAL TRADER

33%

8%

58%

exporterImporterBoth

Page 28: supply chain network

TABLE: 3.2

FORM OF ORGANISATION

Particulars No of Respondents PercentageProprietorship 0 0

Partnership 6 25

Private Ltd 12 50

Public Ltd 6 25

Total 24 100

Interpretation

It can be inferred from the followiung table that out of 24 companies, 6 are partnership concern which accounts for 25% of the total respondents. This is followed by 12 private company which accounts for 50% of the total companies surveyed. And the rest 6 are being categorized under public ltd co. that covers the remaining25%.

Page 29: supply chain network

CHART: 3.2

FORM OF ORGANIZATION

25%

50%

25%

PropietorshipPartnershipPrivate LtdPublic Ltd

Page 30: supply chain network

TABLE: 3.3

FREQUENCY OF EXPORTS/IMPORTS

Particulars No of Respondents PercentageDaily 0 0

Weekly 4 17

Fortnightly 8 33

Monthly 12 50

Total 24 100

Interpretation

from the above table it is clear that out of the 24 clients majority of them

imports/exports monthly, 33% fortnightly & 17% weekly.

Page 31: supply chain network

CHART: 3.3

FREQUENCY OF EXPORTS/IMPORTS

30%

61%

9%

DailyWeeklyFortnightlyMonthly

Page 32: supply chain network

TABLE: 3.4

AS CLIENT OF FREIGHTLINKS INTERNATIONAL INDIA PVT.

LTD

Particulars No of Respondents PercentageLess Than 3 Months 0 0

3-6 Months 2 8.4

6 Months- 1 Year 7 29.1

1-2 Years 9 37.5

More Than 2 Years 6 25

Total 24 100

Interpretation

Out of the 24 companies surveyed, 37.5% are the clients of the FREIGHTLINKS

INTERNATIONAL INDIA PVT. LTD for 1-2 years, 29.1% is for 6 months-1

year, 25%of them are clients of FREIGHTLINKS INTERNATIONAL INDIA

PVT. LTD for more than 2 years and 8.4% is for 3-6 months

Page 33: supply chain network

CHART:3.4

AS CLIENT OF FREIGHTLINKS INTERNATIONAL INDIA PVT. LTD

8%

29%

38%

25%

Less Than 3 Months3-6 Months6 Months- 1 Year1-2 YearsMore Than 2 Years

Page 34: supply chain network

TABLE: 3.5

TERMS AND CONDITIONS

Particulars No of Respondents PercentageFlexible 22 91.6

Semi-Flexible 2 8.4

Strict 0 0

Total 24 100

Interpretation

Form the above table it can be inferred that 91.6% of the clients feel the terms and

conditions of Freightlinks International are flexible and only 8.4% has told semi-

flexible.

Page 35: supply chain network

CHART: 3.5

TERMS AND CONDITIONS

92%

8%

FlexibleSemi-flexibleStrict

Page 36: supply chain network

TABLE: 3.6

COMMUNICATION

Particulars No of Respondents PercentageGood 14 58.3

Average 10 41.7

Poor 0 0

Total 24 100

Interpretation

It is inferred from the above table that 58.3% of the respondents feel

communication between the clients and Freightlinks International India Pvt. Ltd is

good, 47.7% feels it is average.

Page 37: supply chain network

CHART: 3.6

COMMUNICATION

58%

42%

Sales

GoodAveragePoor

Page 38: supply chain network

TABLE: 3.7

FREIGHT RATE

Particulars No of Respondents PercentageGood 5 20.5

Average 19 79.5

Poor 0 0

Total 24 100

Interpretation

79.5% of the clients say freight rates are neither good nor poor and 20.5% of the clients are happy with the freight rates what FREIGHTLINKS INTERNATIONAL INDIA PVT. LTD offers.

Page 39: supply chain network

CHART: 3.7

FREIGHT RATE

21%

79%

Sales

GoodAveragePoor

Page 40: supply chain network

TABLE: 3.8

RELEASING BL

Particulars No of Respondents PercentageGood 18 75

Average 3 12.5

Poor 3 12.5

Total 24 100

Interpretation

Majority of the clients surveyed have said that BL is released at proper time, only 12.5% of clients have said that they are pooor. So the documents should be made available to clients at the right time.

Page 41: supply chain network

CHART:3.8

RELEASING BL

75%

13%

13%

Sales

GoodAveragePoor

Page 42: supply chain network

TABLE: 3.9

INLAND TRANSPORTATION

Particulars No of Respondents PercentageGood 15 62.5

Average 9 37.5

Poor 0 0

Total 24 100

Interpretation

62% of clients said that transportation provided is good; however 38% of clients said they are average. So still the service of inland transportation can be improved.

Page 43: supply chain network

CHART:3.9

INLAND TRANSPORTATION

63%

38%

Sales

GoodAveragePoor

Page 44: supply chain network

TABLE: 3.10

CARGO HANDLING

Particulars No of Respondents PercentageGood 18 75

Average 6 25

Poor 0 0

Total 24 100

Interpretation

From the above table it can be inferred that 75% of the clients said that cargo handling is good and 25% said it is average.

Page 45: supply chain network

CHART: 3.10

CARGO HANDLING

75%

25%

Sales

GoodAveragePoor

Page 46: supply chain network

TABLE: 3.11

TRACKING SYSTEM

Particulars No of Respondents PercentageGood 0 0

Average 2 8.4

Poor 22 91.6

Total 24 100

Interpretation

92% of the clients said that they are not awerse or updates are not made by the organization on the vessel/flight details.

Page 47: supply chain network

CHART:3.11

TRACKING SYSTEM

8%

92%

Sales

GoodAveragePoor

Page 48: supply chain network

TABLE: 3.12

PRE-SHIPMENT INFORMATION

Particulars No of Respondents PercentageGood 10 41

Average 9 38

Poor 5 21

Total 24 100

Interpretation

41% of the clients said that FREIGHTLINKS INTERNATIONAL INDIA PVT. LTD is good at giving pre-shiment information to the clients and advising them on what can be done furhter, 38% said it is average and the remaining 21% said it is poor.

Page 49: supply chain network

CHART:3.12

PRE-SHIPMENT INFORMATION

42%

38%

21%

Sales

GoodAveragePoor

Page 50: supply chain network

TABLE: 3.13

POST-SHIPMENT INFORMATION

Particulars No of Respondents PercentageGood 5 21

Average 15 62

Poor 4 17

Total 24 100

Interpretation

It is inferred from the data collected that 21% of the clients feel that post shipment

information and documents are delivered at the right time, 62% feels it is average

and 17% feels it is poor.

Page 51: supply chain network

CHART: 3.13

POST-SHIPMENT INFORMATION

21%

63%

17%

Sales

GoodAveragepoor

Page 52: supply chain network

TABLE: 3.14

USING THE SERVICE OF OTHER FORWARDERS

Particulars No of Respondents PercentageYes 22 91.6

No 2 8.4

Total 24 100

Interpretation

It is inferred from the data collected that only 8.4% of the clients are using the FREIGHTLINKS INTERNATIONAL INDIA PVT. LTD’s service alone and the remianing 91.6% are using the service of other forwarders also.

Page 53: supply chain network

CHART:3.14

USING THE SERVICE OF OTHER FORWARDERS

92%

8%

Sales

YesNo

Page 54: supply chain network

TABLE: 3.15

RESPONSE TO SHIPPING INSTRUCTIONS

Particulars No of Respondents PercentageGood 18 75

Average 6 25

Poor 0 0

Total 24 100

Interpretation

It is inferred from the data that the majority of the clients feel the response of FREIGHTLINKS INTERNATIONAL INDIA PVT. LTD to shipping instructions are good and only 25% feels neither good nor bad.

Page 55: supply chain network

CHART:3.15

RESPONSE TO SHIPPING INSTRUCTIONS

75%

25%

Sales

GoodAveragePoor

Page 56: supply chain network

TABLE: 3.16

BOOKING OF CARGO BY IMMEDIATE VESSEL/FLIGHT

Particulars No of Respondents PercentageGood 12 50

Average 8 17

Poor 4 33

Total 24 100

Interpretation

From the data collected 50% of the clients feel Freightlinks International India Pvt.

Ltd is able to book the vessel/flight as per the clients choice with rates matching

them, 33% feel it is average and the remainign 17% feels it is poor.

Page 57: supply chain network

CHART: 3.16

BOOKING OF CARGO BY IMMEDIATE VESSEL/FLIGHT

50%

33%

17%

Sales

GoodAveragePoor

Page 58: supply chain network

TABLE: 3.17

COLLECTIONS OF SHIPPING/AIR DOCUMENTS

Particulars No of Respondents PercentageGood 21 87.5

Average 3 12.5

Poor 0 0

Total 24 100

Interpretation

It is inferred from the data that 87.45% of clients feel that FREIGHTLINKS

INTERNATIONAL INDIA PVT. LTD is doing an in collection of shipping/air

documents for quick clearance.

Page 59: supply chain network

CHART:3.17

COLLECTION OF SHIPPING/AIR DOCUMENTS

88%

13%

Sales

GoodAveragePoor

Page 60: supply chain network

TABLE: 3.18

STRENGTH WITH MAJOR SHIPPING/AIRLINES

Particulars No of Respondents PercentageGood 11 41

Average 9 38

Poor 4 21

Total 24 100

Interpretation

the above table shows that 41% of them feel that FREIGHTLINKS

INTERNATIONAL INDIA PVT. LTD has got good relationship with major

airlines and liners. 38% of the clinets feel the relationship is average and the

remianing 21% feels the relationship is poor.

Page 61: supply chain network

CHART: 3.18

STRENGTH WITH MAJOR SHIPPING/AIRLINES

46%

38%

17%

Sales

GoodAveragePoor

Page 62: supply chain network

TABLE: 3.19

TIME TAKEN TO DELIVER THE CARGO

Particulars No of Respondents PercentageGood 0 0

Average 23 96

Poor 1 4

Total 24 100

Interpretation

96% of the clients surveyed said that the cargo is delivered at the right time from

the date of arrival and the remianing 4% are not hapy with the time taken to deliver

the averages.

Page 63: supply chain network

CHART: 3.19

TIME TAKEN TO DELIVER THE CARGO

96%

4%

Sales

GoodAveragePoor

Page 64: supply chain network

TABLE: 3.20

COMPLAINTS FROM CONSIGNEE

Particulars No of Respondents PercentageYes 1 402

No 23 95.8

Total 24 100

Interpretation

It is inferred from the data collected that very minimum amount of complaint of

4.2% has been received from the consignee.

Page 65: supply chain network

CHART: 3.20

COMPLAINTS FROM THE CONSIGNEE

4%

96%

Sales

YesNo

Page 66: supply chain network

TABLE: 3.21

CROSS TABULATION

PRE-SHIPMENT INFORMATION * POST SHIPMENT

INFORMATION CROSS TABULATION

Pre shipment Informationpost shipment information

TotalGood Average bad

Good

Pre Shipment information

Post Shipment

information

100.0% 100.0%

Average

Pre Shipment information

Post Shipment

information

100.0%

Bad

Pre Shipment information

Post Shipment

information

100.0%

Total

Pre Shipment information

Post Shipment

information

100.0% 100.0%100.0%

100.0%

Interpretation

From the cross tab it was found that only 50% of the respondents who felt pre-

shipment information as good found the post shipment information good. 89% felt

that the post shipment information as average those include the respondents who

felt the preshipment information as average 60% of the respondents who felt pre-

shipment information as bad also felt the post shipment as bad.

Page 67: supply chain network

TABLE: 3.22

STRENGTH WITH MAJOR AIRLINES/SHIPPING COMPANIES IN GETTING SPACE, FREIGHT, ETC... * BOOKING THE CARGO BY

IMMEDIATE FLIGHT / VESSEL

Strength with major airline/shipping companies in getting space, freight etc.

Booking the cargo by immediate flight/vessel Total

Good Average bad

Good Strength with major airline/shipping companies in getting freight, etc. % within Post Shipment InformationBooking the cargo by immediate flight? vessel

Average Strength with major airline/shipping companies in getting freight, etc. % within Post Shipment InformationBooking the cargo by immediate flight? vessel

Bad Strength with major airline/shipping companies in getting freight, etc. % within Post Shipment InformationBooking the cargo by immediate flight? vessel

Total Strength with major airline/shipping companies in getting freight, etc. % within Post Shipment InformationBooking the cargo by immediate flight? vessel

Interpretation

90% of the respondents who felt strength with major airlines/shipping is good also felt that the booking by the cargo is immediate as good. 78% of the respondents who felt strength with major airlines / shipping is average also felt the booking by the cargo is immediate as average. Whereas 100% of the respondents who felt strength with major airlines/ shipping is bad alos felt that the booking by the cargo is immediate as bad.

Page 68: supply chain network

TABLE: 3.23

NON PARAMETRIC TEST

RANKS

MEAN RANK

FREIGHT RATE 2075

SERVICE 3.04

TRANSIT 2.79

GOODWILL 3.08

SAFETY 3.33

Interpretation

From the Freidman test it is inferred that the freight rate is ranked best among the other parameters. Transit is ranked second followed by service, goodwill and safety.

Page 69: supply chain network

4.1 FINDINGS

Majority of the respondents are clients of Freighlink Logistics India Pvt. Ltd

for more than one year.

Almost 90% of the clients feel that the terms and conditions of Freightlinks

International India Pvt. Ltd is flexible.

Majority of the respondents feel that communication between the customer

and the company is good.

Most of the clients said they were neither satisfied or nor dissatisfied with

the rates that are provided by freighlinks International India Pvt Ltd.

Bill of lading is released at the proper time.

The Post-shipment information given is not good as pre-shipment

information.

Majority of the clients are using the service of other forwarders.

Constant information flow on status of all consignments is not given

properly.

Booking of cargo by immediate vessel/flight is good through their relation

with major airlines/shipping company is average.

Timely clearance and delivery from Indian air and sea ports to destinations

is poor.

Clients are expecting a separate slot or space for them in warehouse for their

goods through they feel cargo handling by FREIGHTLINKS

INTERNATIONAL INDIA PVT. LTD is good.

Tracking system of the company is not being used properly.

Page 70: supply chain network

4.2 SUGGESTIONS Employees should be given training to use the latest software

packages.

Tracking system should be updated and make an awareness to the

clients about such service existing.

Pre-alerts should give to the clients on time so that it may be helpful

for them in making necessary arrangements.

Constant updates about consignments should be given to the clients

through phone or mail.

Each client should be given individual attention for developing a

better relationship by organizing a get together party.

Marketing sales person should be trained well in order to maintain a

healthy relationship with the existing clients.

Proper pre planning for the clearance of the cargo.

Proper follow up should be there even after the shipment is on board.

Page 71: supply chain network

CONCLUSION

In the survey conducted on Cochin clients, it has been found out that

the majority of exporters/ importers were satisfied with the services of

Freighlink Logistics Pvt. Ltd, except for rates and communication i.e.

in letting the information given to the clients. The employees should

be trained to use the latest software’s and other upgrading should be

made known to the employees.

The clients should be communicated and given all the information that

is required for them. The tracking system should be updated and made

the clients aware of the use of such system. This helps the clients to

know where their goods are and what the time of shipment arrival.

The marketing department should be made optimal use of by getting

new clients that helps the organization in developing.

More interactions between FREIGHLINK INTERNATIONAL

INDIA PVT. LTD and the clients by means of organizing frequent

contact programs will strengthen the bond between the two parties,

which will ultimately benefit Freightlinks International India Pvt. Ltd.

Page 72: supply chain network

BIBLIOGRAPHY

PUBLISHED SOURCES

Dr. Krishnaveni Muthiah, “ Logistics Management and World Sea Borne”, 2001 edition

P. Saravanavel, “Research Methodology”, 15th edition, 2004.

C.R. Kothari, “Research Methodlogy (Methods and Techniques), 2000 edition.

WEBSITES http://www.freightlinksindia.com

www.logistics.net

www.imaritime.com

www.tradeport.org

Page 73: supply chain network

QUESTIONNAIRE

1. Name & Address of the Organization2. Are you an

Exporter Importer Both3. Form of organization

Proprietorship Partnership Private Ltd Public Ltd

4. Frequency of exports/ ImportsDaily WeeklyFortnightly Monthly

5. Mode of operationDoor – Door Door – PortPort – Port Port – Door

6. Parameters you consider while choosing a Freight Forwarder (Rank them)Freight rare Services Transit timeGoodwill Safety

7. How long have you been the client of Freighlinks International India Pvt. Ltd.?Less than 3 months 3 months - 6 months6 months – 1 year 1 year – 2 yearMore than 2 years

8. Your opinion about the terms and conditions of Freightlinks International Pvt. LtdFlexible Semi-flexible Strict

9. Rate the service provided by Freighlinks International Pvt. Ltd., based on your satisfaction

Particulars Good Average PoorCommunication Freight RatesReleasing BLTransportationCargo handling

Page 74: supply chain network

Tracking system10.Your opinion about the pre – shipment and post – shipmen information by

Freightlinks International India Pvt. Ltd.,

Particulars Good Average PoorPre- shipmentPost - shipment

11.Do you avail the service of any other freight forwarders?Yes No

12.How do you rate Freightlinks India Pvt. Ltd., on the following parameter?

Particulars Good Average PoorTime taken in contacting the supplier after getting informationTracking the cargo by immediate vessel or flight.Arrangements made to collect shipping/ air documents for clearance process.Their strength with major Airlines/ shipping companies in getting space, freight and other services.Time taken to deliver the goods from the date of arrival.

Page 75: supply chain network

13.Do you get any complaint about Freighlinks International India Pvt. Ltd., services from your consignee?Yes No

14.If yes, state the complaints: ……………………………15.What are the additional services you expect from Freightlinks International

India Pvt. Ltd.? ……………………………………………………….

Page 76: supply chain network
Page 77: supply chain network

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