Executive Summary: Industry Profile

A study on Domestic Transportation in India at Expeditors
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 network0#.# million km. 1oad 2etwork carry nearly
35 of freight The Indian 1ailways boasts of being the world4s 5nd largest rail network spread
over '"!5"" km and covering 3'63 stations. The freight segment accounts for roughly two thirds
of railway4s revenues. It has "5 ma*or and "'4 minor 7 intermediate ports spread across the vast
coastline of 75"7km. The "5 ma*or ports handle about 73 per cent of the traffic. &ort traffic to
grow to a level of 650 -illionTonnes per +nnum by 50060 -inistry of )hipping. +viation holds
a small share of India4s 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 57 million tonnes valued at
$500 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 50"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 <ogistics -anagement defines
logistics as that part of the supply chain process that plans! implements! and controls the
efficient! effective flow and storage of goods! services! and related information from the point of
origin to the point of consumption in order to meet customers= re>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
$)-7$&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
damage7loss. )o closed trucks like canters and container transportation will be a better
alternative.
CONCLUSION
-odern technological device called $&1) should be used in transporting vehicles! so
that customers can track the vehicle.
.anters and containeri8ed transportation is adopted! so that damage7loss can be
minimi8ed.
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INTRODUCTION OF T!E STUDY
<ogistics and supply chain practices are a set of activities undertaken to promote effective and
efficient management of supply chains. These include supplier partnership! physical movement
of goods @logisticsA and information sharing throughout the supply chain in order to meet
customer re>uirements. )ome of the key logistics and supply chain practices that impact
performance are related to estimation of customers order! efficient and effective delivery!
integration and collaboration throughout the supply chain! sharing of vision and information
using formal and informal methods! as well as use information and communication
technology@I.TA and various specialist for performing specific *obs across the supply chain. +ll
of these practices impact logistics the supply chain performance.
T#t$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 sub0function 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 1s0 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.
Transportation and logistics services are generally outsourced to third parties. Transportation is
mainly by road and the lead0time 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 $&) are being employed.
In our on site observation of 50 firms! we find that the primary focus is on >uality! cost and
service. 1ecently! responsiveness @delivery speed! safety! volume fle/ibility! shipment weight and
innovationA is also catching up management attention. .orrespondingly! the ma*or concern in all
these firms and their supply chains are related to cost! clarity of demand! reliability of partners!
shortening of delivery cycle! production and logistics fle/ibility and innovation in supply chain
practices. )haring of benefits within the supply chains has not yet gained much attention. ,irm
especially in the automotive! retail! manufacturing and ,-.$ 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.
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. <ogistics is considered to have originated in the military=s
need to supply themselves with arms! ammunition and rations as they moved from their base to a
forward position. In ancient $reek! 1oman and Iy8antine empires! there were military officers
with the title J<ogistikas4 who were responsible for financial and distribution of supplies.
The K/ford 9nglish dictionary defines logistics asL MThe branch of military science having to do
with procuring! maintaining and transporting material! personnel and facilitiesN. +nother
dictionary definition isL BThe time related positioning of resources.B +s such! logistics is
commonly seen as a branch of engineering which creates Bpeople systemsB rather than Bmachine
systemsB....
Pros%e'ts of "ro.th #) the I)dustry
In years gone by! the traditional warehousing and logistics facility was located by railroad tracks!
a water port! and7or freeways! usually in the least desirable parts of cities or large towns. This
stereotype then faded as gigantic! state0of0the0art facilities began to sprout in more rural areas on
the outskirts of transportation and population hubs. The ;orld started beginning to see such
facilities showing up in even less BtraditionalB areas. -odern warehouses now are being located
in carefully manicured industrial parks that are sprouting as fast as the corn and wheat once did
in these open spaces0often in out0of0the0way places. ;hy the emphasis on such locations for
logistics companiesO
-uch of it is due to the great flu/ that the logistics industry has been undergoing in the first three
years of the 5"st century. -ost of these changes are being driven by a growing trend in the
manufacturing and retail sectors to form partnerships with companies to which they can
outsource non0core logistics competencies0#&< providers.
In turn! #&< providers are continually looking to provide innovative supply chain solutions to
customers by focusing on value0added 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. Iut 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 that4s 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. It4s 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 corporation4s future will be dominated by
si/ factors! or faces of a cube! spelling , ( T ( 1 9.
<ogistics is inevitable in the future and essentially the management policy also has a significant
role in the future of world. $enerally the study is being featured with all aspects of management
in <ogistics and ,reight areas. @<ogistics include Transportation! ;arehousing! 2etwork %esign!
.ross docking! and Ralue +ddingA.
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INDUSTRY PROFILE
<ogistics can be defined as providing the right type of products and7or services at the right price!
at place! time and in the right condition. + >uick look back at some logistics history may prove
very enlightening. <ogistics can be classified as an enterprise planning framework for material
management! information! service and capital flows. <ogistics when seen in the conte/t of the
modern day prevalent work environment also includes information that is comple/ in nature
besides giving importance to all the communication and control system that are essential for
efficient working of the organi8ation.
The birth of <ogistics can be traced back to ancient war times of $reek and 1oman empires
when military officers titled as =<ogistikas= were assigned the duties of providing services related
to supply and distribution of resources. This was done to enable the soldiers to move from their
base position to a new forward position efficiently! which could be a crucial factor in
determining the outcome of wars. This also involved inflicting damage to the supply locations of
the enemy and safeguarding one=s own supply locations. Thus! this lead to the development of a
system which can be related to the current day system of logistics management.
%uring the )econd ;orld ;ar @"6#60"645A! logistics evolved greatly. The army logistics of
(nited )tates and counterparts proved to be more than the $erman army could handle. The
supply locations of $erman armed forces were inflicted with serious damages and $ermany was
not able to wreak the same havoc on its enemy. The (nited )tates military ensured that the
services and supplies were provided at the right time and at the right place. It also tried to
provide these services when and wherever re>uired! in the most optimal and economical manner.
The best available options to do the task were developed. This also gave birth to several military
logistics techni>ues which are still in use! albeit in a more advanced form.
<ogistics has now evolved itself as an art and science. Qowever! it cannot be termed as an e/act
science. <ogistics does not follow a defined set of tables nor is it based on skills inherited from
birth. + logistics manager performs his duties and responsibilities based on his educational
e/periences! skills! past e/periences and intuition. These skills are nourished by a constant
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.
<ogistics has come to be a kind of relief for many organi8ations that formerly looked upon it as a
burden. .ompanies nowadays are hiring people with the re>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#+
<ogistics in India don=t differ too markedly from logistics anywhere else in the world. It=s the the
art and science of managing and controlling the flow of goods! products! services! energy!
information and people from the origin point to the destination point. It includes the proper
combination of several activities such as material handling! warehousing! and information! for
the purpose of ensuring supply of the right product! at the right time! at the right place! for a right
cost in the right condition.
In the past! India has been the student rather than the e/pert when it comes to the field of
logistics. Iut with its current e/pertise! valuable human resources and positive plans! it surely is
walking on the path of being a service provider of class. There are several factors that benefit the
Indian economy for reaching success in the field of logistics! namelyL
". India is the fourth largest economy in the world.
5. It is believed that about one0>uarter of the youth population of the world resides in India.
#. India has human resources that are high in knowledge and abilities.
4. It is the second0largest 9nglish speaking workforce.
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5. It has the 5nd 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 @#&<sA have already started developing their
operations and service networks in India with a purpose to e/plore the rampant Indian economy.
This has resulted in the creation of the need for a vast range of supply chain management @).-A
and logistics solutions which cover several factors such as supply chain! logistics! material
handling! storage! Information technology @ITA! warehousing and inventory management. This
has benefited the efficiency and productivity of the complete value chain in several dimensions
of profits! speed and customer service.
The .onfederation of Indian Industry @.IIA is the premier business organi8ation with a known
commitment towards the development of logistics in India. It has established the .II Institute of
<ogistics which is a speciali8ed state0of0the0art institute of e/cellence with its focus on ).- and
logistics. It is brought up to satisfy the latest industry needs for speciali8ed ).- and logistics.
India is being treated as the destination of the future in the field of logistical service providers all
over the globe. Indian logistical market players have started to gear up and position themselves
in the global scenario. The true potential of these service providers is yet to be reali8ed. India is
keen to offer transportation and logistical service to grow itself as an emerging marketplace. The
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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
<ogistics management is that part of the supply chain which plans! implements and controls the
efficient! effective forward and reverse flow and storage of goods! services and related
information between the point of origin and the point of consumption in order to meet customers=
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 software4s that are used in these departments are!
.onventional %epartmentL .RT software 7 .T-) software
.ontainer TruckingL .T-) software
Bus#)ess Lo-#st#'s
<ogistics as a business concept evolved only in the "650s. This was mainly due to the increasing
comple/ity of supplying one=s business with materials and shipping out products in an
increasingly globali8e supply chain! calling for e/perts in the field who are called )upply .hain
<ogisticians. This can be defined as having the right item in the right >uantity at the right time at
the right place for the right price and it is the science of process having its presence in all sectors
of the industry. The goal of logistics work is to manage the fruition of pro*ect life cycles! supply
chains and resultant efficiencies.
In business! logistics may have either internal focus @inbound logisticsA! or e/ternal focus
@outbound logisticsA covering the flow and storage of materials from point of origin to point of
consumption. The main functions of a >ualified logistician include inventory management!
purchasing! transportation! warehousing! consultation and the organi8ing and planning of these
activities. <ogisticians combine the professional knowledge of each of these functions so that
there is a coordination of resources in an organi8ation.
There are two fundamentally different forms of logistics. Kne optimi8es a steady flow of material
through a network of transport links and storage nodes. The other coordinates a se>uence of
resources to carry out some pro*ect.
01 Produ't#o) Lo-#st#'s
The term is used for describing logistic processes within an industry. The purpose of production
logistics is to ensure that each machine and workstation is being fed with the right product in the
right >uantity and >uality at the right point in time.
The issue is not the transportation itself! but to streamline and control the flow through the value
adding processes and eliminates non0value adding ones. &roduction logistics can be applied in
e/isting as well as new plants. -anufacturing in an e/isting plant is a constantly changing
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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 0 due to
product safety and product reliability issues 0 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 small0integrated players.
STransportation costs account for nearly 40 of production costs.
S<ogistics costs around "# of $%&! compared to ' in the ().
S$rowth in Indian economy is the ma*or driving factor for the demand in logistics industry.
S.hemicals! metals! ,-.$! cement and te/tiles have been identified as the top five contributors
to logistics revenues.

"ro.th Dr#2ers for Lo-#st#'s #) I)d#+
S$eneral growth of the Indian economy.
S-anufacturing boom0for e/ports as well as for domestic
market.
S9/pected rise in International trade from India.
S-2.4s setting up manufacturing in India02okia! ,le/tronics.
S$overnment4s thrust on Infrastructure 00()$"7 billion to upgrade highway networks.
SImplementation of R+T will lead to growth in warehousing business.

SKpening of organi8ed retail sector 0attracting retail chains like ;al0-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 5003050"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 -inister4s 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.

Kn a per0annum basis! (nited )tates invests 5 percent of its annual logistics spend on
infrastructure! India is investing 5# percent or over four times as much.
Industry $rowthT<ogistics $rowth
M9ngineering goods! chemicals and gems ? *ewelry are the fastest0growing
sectorsU manufacturing in India is e/pected to grow by 6.4 percent in
coming years.N says :ac>ues $reen! -anaging %irector ,ed9/0India!
-iddle 9ast ?+frica.
+uto
Kutsourcing in +uto sector could be worth $#75 billion by 50"5 and India could
capture up to $55 billion of this amount. VsourceL-cWinseyX
.hemicals
India4s chemical e/ports could reach $"5 billion by 50"5. V)ourceL -cWinseyX.
9lectrical and 9lectronic &roducts
India4s e/port in electrical and electronic products could reach upto $"' billion a year by
50"5VsourceL -cWinseyX.
1etail
Kpening up of the organi8ed retail sector is attracting big retail chains like ;al0-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.
<ogistics is a mi/ture of several professional disciplines! such asL
". &lanning
5. .ontrolling
#. %irecting
4. .oordination
5. ,orecasting
3. ;arehousing and transportation
7. ,acility location
'. Inventory management
+ll activities that are involved in the movement of goods and services from the point of origin to
the point of final consumption are grouped under the term =logistics=. The art of managing or
supervising all these activities when grouped together as a collective unit! are placed under
=logistics management=. &eople who are authori8ed or given the task of managing the aspect of
logistics management are referred to as =distribution managers= or =logistics managers=.
I*%ort+)'e of $o-#st#'s
". <ogistics is the bed rock of trade and business.
;ithout selling and or buying there can be no trade and business. Iuying and or selling
takes place only when goods are physically moved into and or away from the market.
Take away logistical support trade and business will collapse
5. <eads to customer satisfaction through superior customer service.
Krgani8ational ob*ectives of & V&roductivityX!Y VYualityX!. V.ostX!% V%eliveryX!9
V9mployee -oraleX!, V,le/ibilityX!) V)afetyX!Q VQealthX!9 V9nvironmentX are set to
meet customer e/pectations of Y!.!%!Y! .! )! Q! 9 are parts of must be >uality that a
customer e/pects. <ogistics addresses %! , ob*ectives which lead to customer
satisfaction through superior customer service
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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. <ogistics function
of management brings all such functions under one umbrella pulling down inter
departmental barriers.
4..ompetitive edge
In the fiercely competitive environment logistics provides the edge. %ue to technological
revolution most of the products are moving into commodity markets. In a commodity
market where price is controlled by competition! where there is no product differentiation
in terms of >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.<ogistics wins or loses wars
Iritish lost +merican war of independence due to poor logistics
1ommel was beaten in the desert by superior logistics of +llies
6.)upports critical functions like operations and marketing
)trong logistics support enables a company to move towards :()T I2 TI-9 production
system for survival in a highly competitive market
aA Interface with marketing
These days marketing a product is increasingly on the strength of availability and fle/ibility
as we discussed earlier. )tronger emphasis is on the last of four &s of marketing Vproduct!
price! promotion and placeX. <ogistics provides the interface between production function and
marketing function. -arketing is trying to sell the product in the market place. <ogistics
makes the product accessible to marketing by acting as interface between the function that
produces it and the function that makes the consumer buy it.
This interface is gaining importance due to following changes that are sweeping the market
making many companies adopt :()T I2 TI-9 production system.
a. .hange in the customerL demanding! knowledgeable! conscious of rights! lacking in brand
loyalty! changes preferences very fast! e/pects very high degree of service
b. -any products are moving towards commodities marketL product differentiation in terms of
>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. <ogistical costsL ,or individual businesses logistics e/penditures are 5 to #5 of sales
depending on type of business! geographical areas of operation! weight7value ratios of products
and materials. This is an e/pensive operation. Improvement in the efficiency of logistics function
yields savings as well as customer satisfaction
I*%ort+)'e of $o-#st#'s *+)+-e*e)t #) I)d#+
I. <iberali8ation and opening our door to competition
II. $lobal business has long supply ? distribution lines
III. .hanging Indian customer! aware! demanding and less brand loyal
IR. .ompetition ensures that product differentiation in terms of >uality is difficult
R. &roduct life cycles are shrinking
RI. Kur markets are shifting from sellers4 to buyers4
RII. -any consumer products are moving into commodities market
RIII. India is a large country. <arge distances separate production and consumption centers.
9ssential commodities have to travel from ,ood .orporation warehouses to consumers
through &%).
IZ. <ogistics performance has not been impressive.
OPERATIONAL OBECTIVES OF LO"ISTICS
". 1apid response
,0fle/ibility ob*ective of an organi8ationL )ome companies measure this as response time to
customer4s order. Kn an average how much time do we need to fulfill one particular type of
customer4s order in a yearO This is a measure of 1apid response.
<ogistics should ensure that the supplier is able to respond to the change in the demand very
fast. 9ntire production should change from traditional push system to pull system to facilitate
rapid response. Instead of stocking the goods and supplying on demand! orders are e/ecuted
on shipment0to0shipment basis. Information Technology plays an important role here as an
enabler. IT helps management in producing and delivering goods when the consumer needs
them. This results into reduction of inventory and e/poses all operational deficiencies. 2ow
the management resolves these deficiencies and slashes down costs. V.oncept of )-9% and
W+2I+2 as practiced by :IT companies in :apan or elsewhereX
5. -inimum variance
%0delivery ob*ective of an organi8ation! this can be measured as JKn Time %elivery4 or KT%.
If "00 deliveries are made in a month7>uarter7year how many reached as per the commitment
made to the customerO This percentage is KT%.
+ny event that disrupts a system is variance. <ogistics operations are disrupted by events like
delays due to obstacles in information flow! traffic snarls! acts of god! wrong dispatches!
damage in transit. Traditional approach is to keep safety stocks and transport the goods by
high cost mode. The cost of this approach is huge. <ogistics is e/pected to minimi8e these
events! thereby minimi8e and improve on KT%
#. -inimum inventory
This is component of cost ob*ective of a company. Inventory is associated with a huge
baggage of costs. It is termed as a necessary evil. Kb*ective of minimum inventory is
measured as Inventory Turns or Inventory Turnover 1atio. +mericans call this measure as
turn velocity. <ogistics management increases these turns without sacrificing customer
satisfaction. Qigher turns ensure effective utili8ation of assets devoted to stock. V.oncept of
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single piece flow as practiced by :IT companies in :apan or elsewhereX. <ogistical
management should keep the overall well being of a company in view and fi/ a minimum
inventory level without trying to minimi8e the inventory level as an isolated ob*ective
4. -ovement consolidation
Transportation is the biggest contributor to logistics cost. Transportation cost depends on
product type! si8e! weight! distance to be transported etc. for transporting small shipments *ust
in time Vreduction in inventory costsX e/pensive transport modes are used which again tend to
hike the costs. -ovement consolidation is planning several such small shipments together Vof
different types of shipmentsX by integrating interests of several players in the supply chain.
$enerally! large shipment si8e and long distances reduce transportation cost per unit.
-ovement consolidation shall result into reduction in transportation costs.
5. Yuality
If the >uality of product fails logistics will have to ship the product out of customer4s 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 management4s world over wake up to the significance of logistics
function. <ogistics can play a significant role in total >uality improvement by improving the
>uality of logistics performance continuously and continually.
3. <ife cycle support Vcradle to cradle logistical support0 produce! pack @cradleA and repack
@cradleAX
<ogistics function is e/pected to provide life cycle support to the product after sale. This
includes
a. +fter sales serviceL the service support needed by the product once it is sold during its life
cycle
b. 1everse logistics Vconcept Kct40#X or &roduct recall as a result of
01igid >uality standards Vcritical in case of contaminated products which can cause environmental
ha8ardX
0Transit damage Vleaking containers containing ha8ardous materialX
0&roduct e/piration dating
01igid laws prohibiting unscientific disposal of items associated with product VpackagingX
01igid laws making recycling mandatory
09rroneous order processing by supplier
01everse 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.
<eading firms typically have information systems capable of monitoring logistical
performance on a real time basis giving them the capability to identify potential operational
breakdowns and take corrective actions prior to customer service failure. In situations where
timely corrective action is not possible! customers can be notified in advance and thereby
taking the surprise out of forthcoming service failures
5. Inventory control
Weeping the stock levels in such a position! so that neither stock out nor stock piling takes
place is Inventory control. ;hile formulating inventory policies find out 50 of the products
marketed that account for '0 of the profit.
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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 follows
a. -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 administration
Transportation is accomplished in three ways
a. Kne4s 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
;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! Ireak0bulk! .ross0dock!
&rocessing7&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 50 vis0[0vis 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
in0house logistics services! and soon sensing the growth of the market! have started
providing services to other corporate as well.
<arge e/press cargo and courier companies such as Transport .orporation of India @T.IA
and Ilue %art have also started logistics operations. These companies en*oy the
advantage of already having a large asset base and an all0India distribution network.
)ome large distributors have also forayed into the logistics business for their clients.
)ince logistics service can be provided without assets! there is growing interest among
entrepreneurs to venture into this business.
Indian shippers are gradually becoming more aware of the benefits of logistics
outsourcing. They are now reali8ing that customer service and delivery performance are
e>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 $%& growth rate of #A! which implies more outputs and more demand for
speciali8ed logistics services.
The Indian government has focused on infrastructure development. 9/amples include the
golden >uadrilateral pro*ect! east0west and north0south corridors @connecting four ma*or
metrosA! ,ree Trade and ;arehousing \ones @,T;\A in line with )pecial 9conomic
\ones @)9\A with "00 ,oreign %irect Investment @,%IA limit and public0private
partnerships @&&&A in infrastructure development. It is e/pected that infrastructure
development would boost investments in the logistics sector.
In India! "00 ,%I is allowed in logistics whereas in .hina! until recently! foreign
investment was not allowed in domestic logistics. +lmost all large global logistics
companies have their presence in India! mainly involved in freight forwarding. ,or
domestic transportation and warehousing! they have tie0ups with Indian companies. +s
the Indian logistics scenario looks promising! these -2.s are e/pected to play a bigger
role! probably forming wholly0owned subsidiaries or taking the ac>uisition route. The
latter may be the preferred route of investment since the target company is readily
ac>uired with its asset base and distribution network! and the need for building
everything from scratch can thus be avoided. The benefits for the ac>uired company
include the patronage of an -2. and access to the -2.4s global network. +s an
9/ample! %Q< %an8as! the biggest logistics company in the world! has taken over Ilue %art.
M+)+-er#+$ I*%$#'+t#o)s
)tudies on logistics indicate that in this highly competitive and high0cost! low0margin 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 single0point 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! small0to0medium0si8ed
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 @<ieb and Iutner! 5007A.
+ survey of 2orth +merican <)&s @Iagchi and -itra! 5003A found that logistics managers
perceived internationali8ation of operations! industry focus or speciali8ation! investment in
information systems! availability of skilled logistics professionals! integration of supply chains!
customer focus and breadth of service offerings as the most important factors for success as a
<)&. Qowever! the survey identified significant gaps between e/pectations and actual
achievements of <)&s with respect to internationali8ation of operations! skilled logistics
professionals and integration of supply chains! which should be seriously looked into by
managers. The survey also established relationships among a set of performance metrics and key
success factors to identify significant predictor and criterion variables. Kne of the most important
observations was that collaborative relationships with clients and investments in assets are
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 <)&s will help reduce their overheads! streamline supply
chains! reduce costs and improve service delivery. The organi8ational interests should be put
above vested interests! if any. They need to reali8e that organi8ed <)&s are professionals! who
will maintain confidentiality of sensitive client information.
The Indian government should also focus on developing infrastructure and encourage public0
private partnerships in investments in infrastructure. Qighway pro*ects such as golden
>uadrilateral and east0west! north0south corridors connecting all four metros are already
underway. &rivate investments in inland containeri8ed transportation by railroad! which was a
monopoly of .ontainer .orporation of India <imited @.K2.K1A! a subsidiary of Indian
1ailways! until recently! have been allowed. "00 ,%I is also allowed in ,ree Trade and
;arehousing \ones @,T;\A to create necessary trade0related infrastructure to facilitate import
and e/port of goods and services. The government may create logistics )9\s @)pecial 9conomic
\onesA or logistics hubs with concessions in land and ta/ rates. Incentive schemes may also be
e/tended for construction of modern automated warehouses and cold chains. +ccess to cheap
capital should be made available to <)&s for investments in infrastructure! enabling them to
e/tend longer credit periods to their clients and supplementing their working capital. The
government may create a uniform ta/ structure and do away with multiple check points and
documentation re>uirements! which would lead to speedier delivery of cargo. To generate
awareness! the government may organi8e seminars! workshops! e/hibitions and meetings to
bring in representatives of logistics users! service providers and government under one roof! and
also sponsor courses in leading Indian institutes to attract talent. $rowth of the logistics industry
in India will not only contribute to the $%&! but also generate employment @-itra! 5003A.
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Ro+d fre#-ht #)dustry: The industry is highly fragmented and largely unorgani8ed. The
unorgani8ed sector accounts for nearly '0 of the market share. Qowever! changing policies
with regards to ta/ structure are likely to give a competitive edge to the organi8ed sector. 1oad
transport comprises of freight and passenger traffic. It accounts for over 30 of goods traffic and
over '0 of passenger traffic.
R+#$.+ys se'tor:
Indian 1ailways has one of the largest and busiest rail networks in the world! transporting over
"' million passengers and more than 5 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#!#57 kilometers @#6!#50 miA. +s to rolling stock! I1 owns over 500!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 cross0subsidies the loss0making 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 0 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):
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 Iengal! +ssam! parts of 2orth 9astern region and
$oa.
%evelopment of inland water transport commenced from the )econd ,ive ]ear &lan and up
to the end of ,ifth &lan the total e/penditure on this sector was 1s. #4 crores. It was only in
the )i/th &lan that this sector was given priority and specific schemes of inter0)tate and
national importance for development of inland water transport were taken up. The )eventh
&lan was an important landmark in the development of inland water transport. The
e/penditure on this sector in the &lan @at 1s. "#".'5 croresA was more than the e/penditure
incurred right up to the end of the )i/th &lan. Three ob*ectives were laid down in the
)eventh &lan for the development of inland water transport
%evelopment of inland water transport in the regions where it en*oys natural advantage.
-oderni8ations of vessels and country crafts to suit local conditions0 and
Improvement in the productivity of assets. The Inland ;aterway +uthority has been set up
which is a big step forward and should help in the accelerated development of inland water
transport.
Co+st+$ 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 5.5 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 55 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
Iecause 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#064. as compared to ".65 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. 55.7 crores. +n important step taken during the )econd &lan was the
establishment of a non0lapsing 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 India4s foreign
trade and also to replace the overaged tonnage especially the coastal vehicles. JThe outlay in
this plan was kept at 1s. 750 crores while actual e/penditure was only 1s. 4#5.64 crores.
The resources constraint had forced the )eventh &lan to keep the outlay at 1s. 36#.45 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 long0term ob*ective of achieving0
self0sufficiency in tanker fleet.
Ports
India4s coastline of about 3!000 km is dotted with "" ma*or! "" intermediate and "3' minor
ports. 2early 65 per cent of the country4s foreign cargo @by volumeA moves by sea and!
therefore! ports7and their development assume an important place in policy making.
%evelopment and maintenance of India4s ma*or ports are the responsibility of the .entral
$overnment! while Kther &orts are in the .oncurrent list.
M+&or Ports:
India4s 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 Ioards and vests the administration control and
management of ma*or ports in these Ioards.
+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 "635. &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 cargo0handling 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 Krissa05! +ndhra&radesh0"5! Tamil2adu0"0!
Babasabpatilfreepptmba.com Page ##
&ondicherry0"! +ndaman and 2icobar055! <akshadweep0"0! Werala0"#! Warnataka06! $oa05!
-aharashtra05#!%aman and %iu05 and $u*arat040.
2ame of the "" ma*or ports! .alcutta! Qaidia! &aradeep! -umbai! .hennai .ochin!
Tuticorin! :2&1! Wandla Rishakhapatnam! 2ew -angalore and -armugao.
+viation )ector
India=s rapid economic e/pansion! commerce and the fast growing food processing sector has
led to a strong and secular growth in air cargo traffic. %omestic cargo movement of airlines has
shot up by about #4 per cent in 500'! while international cargo movement has grown by "5 per
cent.
.argo growth in aviation over the last three years has overtaken the railways and shipping! and is
set to grab part of their share of freight traffic! says the +ssociated .hambers of .ommerce and
Industry of India @+))K.Q+-A! which sponsored the +))K.Q+-09co &ulse @+9&A study.
The +9& study on Changing Pattern of Cargo Traffic in India from 5000 to 500' analy8ed three
ma*or modes of transportation 0 aviation! railways and shipping. It found that cargo business in
the aviation sector grew by around "6 per cent! against "0.# per cent and 6.5 per cent in shipping
and railways during the last three years.
The burgeoning domestic traffic has reduced the proportion of international airfreight to inland
traffic from 500 per cent in 5000 to "34 per cent in 500'! mainly because of the rise of low0cost
domestic airlines.
+long with logistic companies and retail ma*ors! domestic airlines are launching dedicated
freight aircraft to boost goods traffic within the country.
The government is laying emphasis on the food0processing sector and horticulture! giving rise to
and need for greater capacity in low0cost domestic airfreight. %edicated freight aircraft flying
national and international routes would give a boost to industry! +))K.Q+- &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 500' from "" per cent in 5007. The
proposed dedicated freight corridor @%,.A is likely to sharply increase railways goods traffic! but
the e/treme long0term 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 5005003 to
"0.4 per cent in 5003007 to 6.5 per cent in 500700'. In contrast! total air cargo traffic has
increased from "5.3 per cent in 5005003 to 5".5 per cent in 5003007! 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 5003007 to "".50 lakh tonnes in
500700'. %omestic air cargo traffic swelled from "4.'" tonnes to "7.66 tonnes in the same
period! registering a .+$1 of "5 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 4.5# lakh tonnes in 5005003 to 4.34 lakh
tonnes in 500700'! registering a .+$1 of 7 per cent. Iut 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 .+$1 of 3.3 per cent over the
last si/ years. 1ailways freight traffic has increased from 3.3' lakh tonnes in 5003007 to 7.53
lakh tonnes in 500700'! but the growth rate has declined from "0.6 per cent to '.3' per cent over
the same period.
Co*%+)y %rof#$e
9/peditors is much more than getting a piece of freight from one point to another. The .ouncil
of <ogistics -anagement defines logistics as that part of the supply chain process that plans!
implements! and controls the efficient! effective flow and storage of goods! services! and related
information from the point of origin to the point of consumption in order to meet customers=
re>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 <.W. ;ang and
$lenn -. +lger *oin the company and open seven offices around the world. The initial focus is
on (.). inbound freight from the ,ar 9ast! primarily Taiwan! )ingapore! and Qong Wong. Kur
combination of transportation services and customhouse brokerage >uickly makes us one of the
largest (.).0based 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 <os +ngeles Kffices! and we open our +tlanta office.
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 $5." 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 Iridge! a ma*or non0vessel
ocean common carrier @2RK..A and e/pansion of less than container load @<.<A and full
container ocean services. ;e also open a new office in Ioston this year.
569= 88 16 locations
;e top $"00 million in gross revenues @$"0'!774!000A. ;e enter the 9uropean market by
ac>uiring a small e/port company and opening our <ondon office.
5697 88 17 locations
;e open our first office in -alaysia.
;e substantially e/pand e/port volume through a series of planned e/pansion in the ,ar 9ast!
9urope! +ustralia! and the (.). &eter :. 1ose! one of the founders! assumes the title of &resident
and .9K.
;e complete the development of a computeri8ed air e/port program.
566> 88 32 locations
Kur Irussels office becomes our first in continental 9urope. ;e also open offices in Wuala
<umpur! :akarta and .leveland @(.).A.
Kur net earnings top $"0 million @$"0!"63!000A. ;e formali8e an internal >uality program called
9Z.9< @9/peditors .ommitment to 9/cellence and <eadershipA! built on a goal of "00
customer satisfaction "00 of the time.
566? 88 1 locations
The number of worldwide employees tops "!000 @"!"00A. ;e open five offices in $ermany and
our first -iddle 9ast office in )audi +rabia! bringing our number of offices worldwide to 4'.
566: 88 6 locations
;e establish a new division called 9/peditors= .argo -anagement )ystems @e.cmsA! an ocean
consolidation program with an automated electronic data interface. ;e open our first office in
.hina and Iei*ing grants 9/peditors a rare class B+B license.
566; 88 !" locations
The number of our employees doubles in two years to 5!000. ;e open distribution centers in
)eattle! .hicago! <os +ngeles! -iami! 2ewark! <ondon! 1otterdam! Irussels! Qong Wong!
Taipei! and )ingapore.
566< 88 96 locations
This is the first year with more than $500 million in gross revenues @$5'4!36"!000A. ;e enter
.entral and )outh +merica with si/ offices and "0 agents! and e/pand in the -iddle 9ast.
Babasabpatilfreepptmba.com Page #'
9/peditor launches a .argo Insurance division. ;e also gain a new address! on the internetL
httpL77www.e/peditors.com.
566= 88 114 locations
9/peditors name a %irector of Yuality and formali8e its global pursuit of I)K 6005 certification.
+ total of 57 offices are I)K 60050certified as five more offices achieve the accreditation in +sia
and 9urope. The number of employees tops #!000 @#!550A. ;e open our first offices in India!
&akistan! and Iangladesh. The class B+B license we hold in Iei*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 55 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 (.). 0 -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.
I)K 6005 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.
;e celebrate our 50th 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 Iritish +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 BIest .ompanies to ;ork ,orB award by ;ashington .9K
-aga8ine. Iut 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 Iest
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.
?>>? 88 19 locations
,irst year with more than $5 billion in gross revenues @$5!563!60#!000A. ,irst year with more
than $"00 million in net earnings @$""5!556!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! highly0trained 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 trans0+tlantic
region. In 500#! 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 55th 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!"53!000.
$"!000 invested in 9/peditors at the I&K price of $6.00 a unit @share and a warrantA is worth
$5##!300 on %ecember #"! 5004! @assuming warrant e/erciseA for a compound annual rate of
return of 5'.
?>>< 88 226 locations
In a year of more mergers among other logistics providers and carriers! 9/peditors stays true to
its vision of organic growth! with five new locations in +sia! si/ in 9urope! two in <atin
+merica! and one each in 2orth +merica and the -iddle 9ast.
The number of employees worldwide now e/ceeds "0!000 and total revenues approach four
billion @$#.6 billionA. 9/peditor is noted by ,orbes as the Iest -anaged Transportation .ompany
and receives two Yuests for Yuality awards by the <ogistics -anagement publication. The ;all
)treet :ournal lists 9/peditors as ^" in their shareholder scorecard for %elivery )ervices! above
both (&) and ,ed9/.
?>>= 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.
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 $5.5 billion in revenue!
9/peditors stood out as one of ,ortune=s -ost +dmired companies in their industry for 5007.
$ood consistent customer service has always been our goal here at 9/peditors and 500' 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 Iarron4s top #0
.9Ks for 500' and Iusiness ;eek ranked 9/peditors 2o. #5 on their Top 50 Iest &erforming
.ompanies. 5006 is our #0th anniversary and we look forward to the coming year and to all the
surprises it will bring.
+wards "66#
<icensed .lass B+B ,reight ,orwarder
o Iei*ing approved a rare .lass B+B license for 9/peditors.
+wards "666
%utch +ssociation of $eneral .argo )ales +gents
o 1eceived award for reservation integrity! communication! know0how and
handling
)outh +frica <ogistics .ouncil
o 1ecipient of the annual <ogistics achiever award for providing the best integrated
logistics service
+wards 5000
Went! ;ashington .hamber of .ommerce
o 1anked ^" for the In &ursuit of 9/cellence award program
Qong Wong <abour %epartment
o 1ecipient of the $ood &eople -anagement +ward for outstanding performance in
people management
Industry +ssociation of )ao &aulo
o 1anked ^# for best international cargo agent based on customer satisfaction
International ,reighting ;eekly
o Iest International <ogistics .ompany of the ]ear
(.). .ustoms Iroker 2ational &ermit
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
<ogistics -anagement ? %istribution 1eport
o .hosen as recipient for the Yuest for Yuality award
)hipping %igest
o Kne of the most e0capable carriers
:ournal of .ommerce
o <eader in International Trade and awarded best intermediary of the year
+wards 500"
,orbes
o Kne of +mericas top 400 companies
,ortune
o 1anked ^# in the transport industry
+wards 5005
Trofeu ,eni/ of 9fficiency +ward
o In Ira8il awarded third place as best .argo +gent of the year
The 2+)%+Y0"00 Inde/
o 9/peditors is added to the 2+)%+Y "00
)elling &ower
o 9/peditors awarded ^" Iest )ervice .ompany to )ell ,or
+wards 500#
<ogistics -anagement ? %istribution 1eport
o .hosen as recipient for the Yuest for Yuality award
+ir .argo ;orld
o
o 2amed the second overall freight forwarder and second in the trans0atlantic
region
Transportes ? 2eg_cios
o &ortuguese newspaper names 9/peditors best in class for both +ir and Kcean
,reight ,orwarding
,orbes &latinum <ist
o ,ifth straight year on the best big companies list
+wards 5004
$lobal <ogistics ? )upply .hain )trategies -aga8ine
o Includes 9/peditors in its global top 55 third party logistics providers ranking.
,ortune
o 1anked ^5 -ost +dmired company in Transportation and <ogistics.
;all )treet :ournal
o 9/peditors ranked ^" in the air freight category for the shareholder scorecard.
&uget )ound Iusiness :ournal
o &eter :. 1ose! .9K! is named 9/ecutive of the ]ear.
Iritish +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 <ogistics )upplier of the ]ear +ward.
International 1ectifier
o )ervice &rovider of the ]ear +ward.
+wards 5005
,orbes
o 2amed Iest -anaged Transportation .ompany
Institutional Investor
o 2ames &eter 1ose as one of the top .9Ks for the +irfreight ? )urface
Transportation Industry
<ogistics -anagement
o 9/peditors receives a Yuest for Yuality award in both the ,reight ,orwarders and
Third0&arty <ogistics categories.
The ;all )treet :ournal
o 9/peditors ranked ^" in the air freight category for the shareholder scorecard for
second straight year.
)amsung
o 9/peditors .hina receives the )amsung Iest &artner awards for the second year
in a row.
+wards 5003
$lobal <ogistics and )upply .hain )trategies
o 1anked ^6 in the Third &arty <ogistics Industry
o 1anked ^' in $lobal Kcean T9( Rolume! ^" in the +sia to () lanes and ^5 in the
.hina to () lanes
o <ists 9/peditors at ^# company in their #&< 1eport! by 2orth +merican 1evenue
o Iest ,ast -oving .onsumer <ogistics )ervice &rovider in Thailand
:ohnson ? :ohnson
o +warded 9/peditors! .ampinas! Ira8il for e/cellency in innovative logistics
services
9aton .orporation
o .I9)& +wardL Iest run supply chain! .ampinas! Ira8il
Trofeu ,eni/
o Third place in freight forwarder category! .ampinas! Ira8il
,ortune=s -ost +dmired .ompanies
o 1anked ^" in the Transportation and <ogistics .ategory
Risteon
o 2amed 9/peditors as one of the "5 outstanding suppliers
&fi8er
o +warded 9/peditors! Indianapolis! Iroker of the Yuarter
+wards 5007
$lobal <ogistics and )upply .hain )trategies
o 2amed Top )upply .hain &artner
o 1anked ^6 on the Top 55 $lobal Third0&arty <ogistics &roviders in their -ay
5007 Issue
o 9arned ^" in both ,reight ,orwarding and Third0&arty <ogistics categories for the
<ogistics -anagement 5007 Yuest for Yuality +wards
,orbes
o Included on the Iest -anaged .ompanies <ist for Transportation Industry
9aton .orporation
o 1ecipient of the B&remier )upplierB award
,ortune=s -ost +dmired .ompanies
o Kne of the top ranked companies in the Transportation and <ogistics .ategory
Iarron=s Knline
o &eter 1ose was named to the top #0 $lobal .9Ks list.
Iritish +irways
o 1ecogni8ed with the annual award for BIest )upport to .ommercial &lanning!B
Istanbul! Turkey
<+2 .argo
o +warded 9/peditors! +rgentina! as one of their top five freight forwarders
)amsung
o 9/peditors! .hina! received the third party logistics provider BIest &artner
+wardB for 5007
;al0-art
o +warded the $lobal +ir ,reight ,orwarder of the ]ear +ward
+wards 500'
Transporte ? 2egocios
o Iest Kcean ,reight ,orwarder
,eni/ +ward of 9fficiency
o Iest <ogistic &rovider
.ovidien
o .ustoms Iroker of the ]ear
o Yuest for Yuality +ward in both Third &arty <ogistics and ,reight ,orwarding
categories
$9 Qealthcare
o &roductivity +ward
Qewlett &ackard
o Kutstanding +chievement +ward
)amsung
o Iest &artner +ward
M#ss#o) St+te*e)t
To set the standard for e/cellence in global logistics through total commitment to >uality in
people and customer service! with superior financial results.
"o+$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 non0asset 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 employees4 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.
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 co0workers.
Cur#os#ty
Ie 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
<ife=s too short not to en*oy the work we do and the people we work with.
V#s#o)+ry
+ perceptive insight to the changing needs of our clients! vendors and organi8ation.
LITERATURE REVIE4
<iterature portrays logistics and supply chain practices from a variety of different perspectives
with a common goal of ultimately improving performance and competitiveness. )tudies show
that modern manufacturing practices such as :ust0in0Time @$reen and Inman! 5005A! Yuality
-anagement @,lynn and ,lynn! 5005A and Information Technology @%yapur and &atnaik! 5005A
affect overall supply chain performance. ;hile there is plenty of published literature that
e/plains or espouses )upply .hain -anagement @).-A! there is a dearth of empirical studies
e/amining logistics and ).- practices. Qow widely are these concepts implemented in practiceO
;hat are some of the ma*or issues and concernsO
$alt and %ale @"66"A study ten organi8ations in (W and find that these are working to reduce
their supplier base and to improve their communications with the suppliers. ,ernie @"665A carries
out an international comparison of ).- in the grocery retailing industry Qe finds significant
differences in inventory held in the supply chain by the () and 9uropean grocery retailers!
which could be e/plained by difference in degrees of their ).- adoption. Tan and ;isner
@5000A compare ).- in the () and 9urope. Tan @5005A relates ).- practices and concerns to
firm4s performance based on data from () companies. Qe lists nine important supply chain
concerns such as lack of sophisticated I.T infrastructure! insufficient integration due to lack of
trust and collaboration among the supply chain stakeholders and thereby lack of supply chain
effectiveness and efficiencies. Iasnet et. al.! @500#A report the current status of ).- in 2ew
\ealand! while )ahay et. al.! @500#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 @500#A surveys ).- practices in (W industrial )-9s @)mall
-anufacturing 9nterprisesA while Wemppainen and Repsalainen @500#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.! @5004A conduct a survey that e/amines the success factors in developing
and implementing ).- strategies for Qong Wong manufacturers. ,eldmann and -uller @500#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 I.T in ).- in )ingaporean electronics and chemical
industries and finds that the top barrier to the use of I.T is the lack of education and training. <i
et. al.! @5003A find that higher levels of ).- practice have a direct! positive impact on firm4s
performance leading to enhanced competitive advantage. They note that these practices may be
influenced by conte/tual factors such as the type of industry! firm si8e! its position in the supply
chain! supply chain length and the type of supply chain. Kther researchers focus on how conflict
and power affect the performance of supply chains @Iradford et. al.! 5004! Wra*ewski et. al.!
5005A.
Klhager and )elldin @5004A study the supply chain strategies of "5' )wedish firms and conclude
that the main ob*ectives for the design of supply chains are resource utili8ation and cost
minimi8ation. They specifically study issues related to the supply chain design! integration!
planning and control and I.T tools for managing supply chains. Their findings indicate that the
firms are starting to appreciate the importance of the supply chains in which they operate.
Yuality is the primary priority for the selection of supply chain partners. In addition! delivery
dependability! cost efficiency! volume fle/ibility and delivery speed are also considered to be
important inputs to the supply chain partner selection process. .ompanies show relatively high
awareness of modern supply chain planning and control tools. Qowever! the utili8ation of such
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.
RESEARC! MET!ODOLO"Y
S+*%$#)- Methodo$o-y:
S+*%$e u)#t:
The area of survey conducted is Iangalore 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 2on0 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 Iangalore .ity.
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$:
,or preparing this pro*ect I have considered >uestionnaire as measuring tool for collecting the
data.
DATA ANALYSIS AND INTERPRETATION
+fter the data have been fully prepared and entered into the computer! the tabulation
work begins. 1eaearcher should *ust prepare a plan specifying which items of data are to
tabulated and whether each item is to be tabulated separately or in combination with other items.
TA#$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 $oods
#5 70
5 .onsumer %urables 7 "4
# 1etail 5 "0
4 Kthers # 3
Tot+$ <> 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 hi0tech goods.
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) ser1ices re2uired in transportation *or manu*acturers+
S$1No1 Ser2#'es No1 of users Per'e)t+-e
" ,ull truck loads and &art loads ## 33
5 9ZI- container trailers "0 50
# 1ail 5 "0
4 Kthers 5 4
Tot+$ <> 5>>@
,-A./02
,rap' s'o(in) t'e ser1ices re2uired in transportation *or manu*acturers+
Analysis+0,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. 50 of them use 9ZI- container trailers."0 of them
use railways. +nd remaining 4 of them use others means for transportation.
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 $o+dsAB-sC No1 of Users Per'e)t+-e
" a"00 0 0
5 "0" to 500 5 4
# 50" to "000 "0 50
4 b"000 #' 73
Tot+$ <> 5>>@
,-A./03
,rap' s'o(in) t'e .art loads (ei)'t *or s'ipment+
AnalysisL0 ,rom the above we can analy8e that 73 of the customers go for more than "000kgs!
50 of them go for 50" to "000kgs and 4 them go for "0" to 500kgs in case of part loads
weight for shipment.
In*erenceL0,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**er3 i* t'e ser1ice le1els (ere met+
S$1No1 Pre*#u* No1 of
Res%o)de)ts
Per'e)t+-e
" 5 5 4
5 "0 0 0
# "5 0 0
4 2o 4' 63
Tot+$ <> 5>>@
,-A./04
,rap' s'o(in) t'e .remium o**er3 i* t'e ser1ice le1els (ere met+
AnalysisL 0 ,rom the above table we can analy8e that ma*ority of the customers i.e. 63 of
them won4t pay a premium and only 4 of them pay a premium for transportation service.
In*erenceL 0 ,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 65
5 %amage7<oss 5 4
# &K% confirmation 5 4
4 Kthers 0 0
Tot+$ <> 5>>@
,-A./0
,rap' s'o(in) t'e pro&lems *acin) &y t'e customers (it' transporters+
AnalysisL0 ,orm the above table we can analy8e that ma*ority of customers ie.65 of them are
facing the problem of shipment tracking facility.4 of them are facing damage7loss and
remaining 4 of them are facing with &K% confirmation.
In*erenceL 0 ,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 ta4en &y t'e customers to o1ercome 5dama)e6loss7 o* s'ipment+
S$1No1 Re+so)s No1 of
Res%o)de)ts
Per'e)t+-e
" Improper loading7unloading "3 #5
5 Transportation through open truck 55 50
# Iad vehicle condition 3 "5
4 Improper stuffing and lashing # 3
Tot+$ <> 5>>@
,-A./06
,rap' s'o(in) c'allen)es ta4en &y customers to o1ercome dama)e6loss o* s'ipment+
AnalysisL 0 ,rom the above table we can analy8e that ma*ority of the respondent4s i.e. 50 of
damage7loss is due to transportation through open truck! #5 is due to improper
loading7unloading! "5 is due to bad vehicle condition and remaining 3 is due to improper
stuffing and lashing
In*erenceL 0 ,rom the above analysis we can conclude that a ma*ority of damage 7loss 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
ser1ices+
S$1No1 Ty%e of r+tes No1of
Res%o)de)ts
Per'e)t+-e
" )pot rates "0 50
5 1ate of contract by 1,Y #3 75
# +nnual rate contract 4 '
4 Kthers 0 0
Tot+$ <> 5>>@
,-A./07
,rap' s'o(in) t'e process o* decidin) on t'e rates to &e paid *or t'e transportation ser1ices+
AnalysisL0 ,rom the above table we can analy8e that 75 of the respondent4s go by rate of
contract by 1,Y!50 of them go by spot rates and remaining ' of them go by annual rate
contract.
In*erenceL 0 ,rom the above analysis we can infer that ma*ority of the respondent4s go for rate of
contract by 1,Y.
TA#$E%!
Ta&le s'o(in) t'e mode o* transportation+
S$1No1 Mode of tr+)s%ort+t#o) No1 of
Res%o)de)ts
Per'e)t+-e
" 1oad #4 3'
5 1ail "5 54
# +ir 4 '
4 )ea 0 0
Tot+$ <> 5>>@
,-A./0!
,rap' s'o(in) t'e mode o* transportation+
AnalysisL0 ,rom the above table we can analy8e that ma*ority of the respondent4s i.e. 3' of
them use road transportation followed by rail i.e. 54 and remaining ' by air.
In*erenceL 0 ,rom the above analysis we can infer that a ma*ority of transportation is by road.
TABLE D 6
Ta&le s'o(in) ('et'er t'e respondents 'a1e any import6export car)o+
S$1No1 S+t#sf#ed No1 of
Res%o)de)ts
Per'e)t+-e
" ]es #' 73
5 2o "5 54
Tot+$ <> 5>>@
,-A./09
,rap' s'o(in) ('et'er t'e respondents 'a1e import6export car)o+
AnalysisL0
,rom the above table we can analy8e that large ma*ority of the respondent4s i.e. 73 of
them have import7e/port cargo and only 54 of them do not have import7e/port cargo.
In*erenceL0
,rom the above analysis we can conclude that a large ma*ority of the respondent4s have
import7e/port cargo.
TA#$E%1"
Ta&le s'o(in) (eat'er i* yes ('at 1alue t'ey see in inte)rated ser1ices o* domestic and
international le)+
S$1No1 V+$ues No1 of
Res%o)de)ts
Per'e)t+-e
" ,low of information 54 4'
5 )ingle point of credit 5 4
# )avings 0 0
4 <ess co0ordination "5 54
Tot+$ :9 7=@
,-A./01"
,rap' s'o(in) t'e 1alue seen in inte)rated ser1ices o* domestic and international le)+
AnalysisL0 ,rom the above table we can analy8e that the respondent4s i.e. 4' of them value the
flow of information! 54 of the respondents feel that there is less co0ordination between
manufacturer and a customer and remaining 4 of them value savings.
In*erenceL0 ,rom the above analysis we can conclude that ma*ority of the respondent4s value
flow of information between manufacture and a customer.
TA#$E%11
Ta&le s'o(in) ('et'er t'e import6export decision on transportation is ta4en &y t'e 58ustom
/ouse A)ent98/A:7+
S$1No1 De'#s#o) o) tr+)s%ort+t#o) No1 of
Res%o)de)ts
Per'e)t+-e
" ]es "' #3
5 2o #5 34
Tot+$ <> 5>>@
,-A./011
,rap' s'o(in) (eat'er t'e import6export decision on transportation is ta4en &y t'e 58/A7+
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 0 ,rom the above analysis we can conclude that ma*ority of the respondent4s say that
the decision on transportation is not taken by the .ustom Qouse +gent.
TA#$E%12
Ta&le s'o(in) ('et'er t'e customers are satis*ied (it' t'e transportation ser1ices+
S$1No1 S+t#sf#ed No1 of
Res%o)de)ts
Per'e)t+-e
" ]es 4' 63
5 2o 5 4
Tot+$ <> 5>>@
,-A./012
,rap' s'o(in) ('et'er t'e customers are satis*ied (it' t'e transportation ser1ices+
them are satisfied with their transportation services and only 4 of them are not satisfied with
their transportation services.
In*erenceL 0 ,rom the above analysis we can conclude that ma*ority of the respondent4s are
satisfied with their transportation services.
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$1No1 Pr#'e De'#s#o) No1 of
Res%o)de)ts
Per'e)t+-e
" &re decided as per the contract 3 "5
5 -utual consent 55 44
# 2o increase or decrease given 55 44
4 Kthers 0 0
Tot+$ <> 5>>@
,-A./013
,rap' s'o(in) 'o( t'e customers deal (it' t'e c'an)e in t'e *uel price+
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 0 ,rom the above analysis we can conclude that ma*ority of the respondent4s go by
mutual consent and no e/tra charges given when increase or decrease in the price.
TA#$E%14
Ta&le s'o(in) &y ('om t'e (are'ouses or distri&ution centers are mana)ed+
S$1No1 M+)+-e*e)t No1 of
Res%o)de)ts
Per'e)t+-e
" #
rd
party 55 44
5 )elf 5' 53
Tot+$ <> 5>>@
,-A./014
,rap' s'o(in) &y ('om t'e (are'ouses or distri&ution centers are mana)ed+
AnalysisL 0 ,rom the above table we can analy8e that ma*ority of the respondent4s i.e. 53 of the
warehouses or distribution centers are managed by self and 44 of them are managed by #
rd
party peoples.
the warehouses are managed by self.
TA#$E%1
Ta&le s'o(in) (eat'er t'e (are'ouse or distri&ution center 9dc: and t'e transportation is
mana)ed &y t'e same ser1ice pro1ider+
S$1No1 M+)+-e*e)t of
DCETr+)s%ort+t#o)
No of
Res%o)de)ts
Per'e)t+-e
" ]es 5 4
5 2o 4' 63
Tot+$ <> 5>>@
,-A./01
,rap' s'o(in) (eat'er t'e (are'ouse or distri&ution center and transportation is mana)ed
&y same ser1ice pro1ider+
AnalysisL0 ,rom the above table we can analy8e that ma*ority of the respondent4s 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.
the warehouses or distribution centers and transportation services are managed by same service
provider.
TA#$E%16
Ta&le s'o(in) ('et'er t'e )oods are insured &y customers+
S$1No1 "oods #)sured Per'e)t+-e
" ]es "00
5 2o 00
Tot+$ 5>>@
,-A./016
,rap' s'o(in) ('et'er t'e )oods are insured &y customers+
AnalysisL 0 ,rom the above table we can analy8e that large ma*ority of the respondent4s i.e. "00
of the goods are insured by customers.
In*erenceL 0 ,rom the above analysis we can conclude that "00 ma*ority of the respondent4s
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 ris4+
S$1No1 De'#s#o) o) r#sF No1 of
Res%o)de)ts
Per'e)t+-e
" Its an open policy 55 44
5 Kwners risk "5 #0
# .arriers risk "# 53
4 Kthers 0 0
Tot+$ <> 5>>@
,-A./017
"r+%h sho.#)- th+t #f -oods #)sured the) o) .hose r#sF:
AnalysisL0
,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 53 of them on carriers risk.
In*erenceL 0 ,rom the above analysis we can conclude that ma*ority of the respondent4s go for
open policy.
FINDIN"S
-a*ority of the respondent4s i.e. @70A of them are manufacturers of automobile and
engineering goods.
-a*ority of the respondent4s i.e. @33A of them use full truck loads and part loads.
-a*ority of the respondent4s i.e. @73A of the customers go for more than "000kgs of part
loads for shipment.
-a*ority of customers i.e. @65A of them are facing the problem of shipment tracking
facility.
-a*ority of the customers i.e. @63A won4t pay a premium if the service levels of transporters
were met.
-a*ority of the respondent4s i.e. @75A of them go for rate of contract by 1,Y.
-a*ority of respondent4s i.e. @3'A of damage 7loss is due to transportation through open
truck.
<arge ma*ority of the respondent4s i.e. @73A of them have import7e/port cargo.
-a*ority of the respondent4s i.e. @4'A of them value flow of information between
manufacture and a customer.
-a*ority of the respondent4s i.e. @34A of them say that the decision on transportation is not
taken by the .ustom Qouse +gent.
-a*ority of the respondent4s i.e. @63A of them are satisfied with their transportation
services.
-a*ority of the respondent4s 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 respondent4s i.e. @53A of them say that the warehouses are managed by self.
-a*ority of the respondent4s 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 respondent4s i.e. @"00A of them say that the goods are insured! without
insurance they won4t transport.
-a*ority of the respondent4s i.e. @44A of them go for open policy! while deciding on the risk
factor.
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
customer0specific 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 lead0times and more
reliable flow of goods.
Timely delivery services with accuracy and reliability in both domestic and cross0border
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 <ogistics Industry. .ustomer can avail the
latest and the fastest means of clearing their consignments P 9/port ? Import! through
customs systemi8ed channels unless otherwise sub*ect to custom rules ? regulations.
Qence it will be useful if the decision on transportation is taken by custom house agent
@.Q+A.
)ince ma*ority of the customers are facing the problem of shipment tracking hence 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
$)-7$&1) network. The system automatically switches over to )-) wherever $&1)
coverage is not available.
damage7loss. )o closed trucks like canters and container transportation will be a better
alternative.
;hile loading7unloading of goods! proper material handling e>uipments like fork lift and
belt conveyors should be used.
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 cross0border 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 $)-7$&1) network. The system automatically switches over to )-) wherever
$&1) coverage is not available.
damage7loss 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 loading7unloading! stuffing and lashing
hence proper material handling e>uipments like fork lift and belt conveyors.
BIBILIO"RAP!Y
Refere)'e BooFs
Indian logistics 0 %r. 1aghuraman
<ogistics and supply chain management 0 %r. &aul Qarris
4e0s#tes:
www.e/peditors.com
www.google.com
Guest#o))+#re ADo*est#' '+r-o I)d#+C
De+r S#rHM+d+*I
%ateL ccccccccccccccc
.ompany nameL ccccccccccccccc
&erson contactedL ccccccccccccccc
%esignationL ccccccccccccccc
.ontact numberL ccccccccccccccc
". ;hat are the type of commodities do you deal inO
ccccccccccccccccccccccccccccccccccccccccc
5. ;hich is the industry verticalO
+utomobile7telecom7&harmaceuticals7,-.$79ngineering goods7.onsumer durables7Qi0
tech7$arments71etail7
Kthers @specifyA cccccccccccccccccccccccc
#. ;hat are the type of services do you re>uire in transportationO
9ZI- container trailers 0 &ort to factory7%. and vice versa
%. trailers 0 +nywhere to anywhere
,ull truck loads @,T<A 0 ,actory7%. to end customers and vice versa
&art loads @<T<A 0 %eferred services
9/press cargo 0 Time bound
Intra city distribution 0 -a*or cities only
1eefer 0 ,ull truck7&art load
.ustom built vehicles 0 )peciali8ed handling7cargo
Iy air 0 To ma*or cities
Iy rail 0 To ma*or cities
KthersL ccccccccccccccccccccccccccc
Babasabpatilfreepptmba.com Page '0
4. Incase of part loads! typically how much is the weight for shipmentO
aAa"00kgsU bA"0" to 500kgsU cA50" to "000kgs dA"00"kgs
5. &lease provide the list of top 5 lanes and shipment volumes
cccccccccccccccccccccccccccccccccccc
3. ;hat do you e/cept in terms of service levels from a transporterO @wish listA
ccccccccccccccccccccccccccccccccccccccccccccc
7. ;ould you pay a premium! if these service levels were metO If yes! how muchO
aA5 bA"0 cA"5 dA50 eAotherLcccccccccccccccccccc
'. ;hat are the top # M&roblemsN you face with the present set of transportersO
)hipment trackers
)ecurity
%amage7<oss
-is0routing
&K% confirmation
KtherLccccccccccccccccc
6. %o you face any challenges in terms of Mdamage7lossN of shipmentsU if yes!
&lease describe the reasons.
Improper loading7unloading
Improper stuffing
Improper lashing
Iad vehicle condition
Transportation through open truck
KthersLcccccccccccccccccccccccc
Babasabpatilfreepptmba.com Page '"
"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
KtherLcccccccccccccc
"". Qow much is monthly spend @in I21A on transportation by road! air and rail
respectively.
ccccccccccccccccccccccccccccccccc
"5. %o you have any import7e/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
<ess co0ordination
Kthers
"#. In case of imports7e/ports is the decision on transportation taken by the .Q+O
]es72o
"4. If yes are you satisfied with their transportation servicesO
]es72o
"5. Qow do you deal with the change in the fuel pricesO
&re decided as per the contract
-utual consent
2o increase or decrease given
KthersLccccccccccccccccccccccc
"3. %o your products need any warehousing or distribution centre in IndiaOIf yes!
Windly provide the location and the space re>uirements.
<ocationLcccccccccccccc )pace@s> ftALcccccccccccc
"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
]es72o
"6. If no why notO
+dvantage %isadvantage
ccccccccccccc ccccccccccccc
cccccccccccccc ccccccccccccc
50. If yes! whyO
+dvantage %isadvantage
Babasabpatilfreepptmba.com Page '#
5". ;ho are your top # vendors for transportationO
cccccccccccccccccccccc
cccccccccccccccccccccc
ccccccccccccccccccccccc
55. +re the goods insured by youO If yes!
Its an open policy
Kwners risk
.arriers risk
&remium paidLcccccccccc
5#. If not insured! then how do you manage the riskO
cccccccccccccccccccccccccccccc
54. +ny suggestions7remarks

Executive Summary: Industry Profile

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A study on Domestic Transportation in India at Expeditors

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