EFFECTIVENESS OF LOGISTICS MANAGEMENT

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INTRODUCTION
Origin and Definition of Logistics:
The term "logistics" originates from the ancient Greek " " ("logos"²"ratio, word, calculation, reason, speech, oration"). Logistics 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 Greek, Roman and Byzantine empires, there were military officers with the title µLogistics¶ who were responsible for financial and distribution of supplies. The Oxford English dictionary defines logistics as: ³The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.´Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems".

a. Introduction to Logistics Management
Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and information between the point of origin and the point of consumption in order to meet customers' requirements. Logistics as a business concept evolved only in the 1950s. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and it is the science of process having its presence in all sectors of the industry. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.

b. Prospects of Growth in the Industry
In years gone by, the traditional warehousing and logistics facility was located by railroad tracks, a water port, and/or freeways, usually in the least desirable parts of cities or large towns. This stereotype then faded as gigantic, state-of-the-art facilities began to sprout in more rural areas on the outskirts of transportation and population hubs. The World started
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beginning to see such facilities showing up in even less "traditional" areas. Modern 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 spaces-often in out-of-the-way places. Why the emphasis on such locations for logistics companies? Much of it is due to the great flux that the logistics industry has been undergoing in the first three years of the 21st century. Most 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 non-core logistics competencies-3PL providers. In turn, 3PL providers are continually looking to provide innovative supply chain solutions to customers by focusing on value-added capabilities, differentiating themselves from the competition. 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. But 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 locations. Profit warnings, share price pressures, mergers, reorganizations, relocations, disposals, painful layoffs and great geopolitical uncertainties can sweep away even the most comprehensive logistics strategies ± and that¶s despite outstanding management over many years. These are exceptionally difficult times and it has never been more important to connect logistics and freight planning to executive board thinking than now. It¶s easy to lose sight of the bigger picture in the rush to cut infrastructure cost and conserve cash. Hopefully organization succeed in protecting the business, satisfying shareholders and analysts, bu t what about capacity and flexibility, morale and momentum ? To be a logistics winner in the coming years organizations 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. Logistics is inevitable in the future and essentially the management policy also has a significant role in the future of world. Generally the study is being featured with all aspects of management in Logistics and Freight areas. (Logistics include Transportation, Warehousing, Network Design, Crossdocking, and Value Adding)

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The Bank study asserts that countries that are able to connect to the global logistics web would not only have access to vast new markets but also remain a part of the global trade growth. has developed a Logistics Performance Index (LPI) that can serve as a benchmarking tool for measuring performance of businesses along a country¶s logistics supply chain.07 3. India trails behind China on important indices such as customs procedures.84 4. have been pushed for competitive balance-sheets. logistics competence and tracking of shipments. as the survey shows that nations with increasing trade (imports and exports) to GDP emerged as the out-performers on the LPI scale relative to their income levels.85 3.19 3. but is ahead of the latter on the domestic logistics efficiency front. Triggering intense competition.INDIAN LOGISTICS INDUSTRY Wars have been won or lost on the strength of logistics capability or lack of it. logistics has been becoming efficient only since the globalisation wave of the early 1990s and hence. in a recent survey Connecting to Compete: Trade Logistics in the Global Economy. globalisation. forced both private and public firms to commit themselves to making available to their customers the right material of right condition. at the right time and place at the lowest cost ² be it a product or a service. Although quite an old concept. Country USA UK Singapore India China Mexico LPI Score 3.64 2. It also warns that those countries whose links with the global logistics chain are weak are bound to face large and growing costs of exclusion from international trade.64 4 . The report avers that it is not the income of nations but their undergoing trade expansion that determines their logistics efficiency. worldwide. The World Bank. coupled with liberalisation. providing consumers a better product/service and yet adding value to its investors. international shipment. overall infrastructure quality. the businesses supported by it.

Country India U. to fragmentation in the warehousing sector. extensive industry fragmentation and lack of good basic infrastructure.4% 5 .9% 10% 11.The level of inefficiency in logistics activities in the country has been very high across all modes. regulatory environment and the fragmented nature of the industry are being overcome gradually. The required pace of efficiency and quality improvement will demand rapid development of capabilities of logistics service providers. India's indirect tax regime discouraged large centralized warehouses and led. the absence of a single logistics 'champion' (whether in form of a ministry or otherwise) in the government (or industry) led to a disintegrated approach to development of the sector. The most severe and immediate requirement for skill development is found to be in the road freight and warehousing segments.equivalent to 13 percent of its GDP is higher than that of the developed nations. skill development will emerge as a key capability while skill issues exist in varying degrees in all segments of logistics. The key reason for this is the relatively higher level of inefficiencies in the system. over time. And with logistics being a service oriented sector. Europe Japan Logistics Cost/GDP 13% 9.S. those segments where the gaps are not only wide but also widening at a relatively fast pace. With the evolving business environment creating a strong demand pull for quality and efficient logistics services. core issues around enabling infrastructure. At the same time. India¶s spend on logistics activities . higher turnaround time at ports and high cost of administrative delays being just a few of the examples. with lower average trucking speeds. These inefficiencies have arisen over the years from a combination of a non-conducive policy environment.

a fragmented industry with low average scale . Fundamentally. It is not surprising therefore that there is a frantic pace of consolidation and organic growth that the industry is witnessing (refer box and figure 4). such as roads. 6 .and consequent limited investment and market development capability . regulations around rationalization of tax structures and prevention of overloading for example are creating an environment of positive change. much of this is changing with the government now demonstrating a strong commitment towards providing an enabling infrastructure and creating conducive regulations. led to a situation where the opportunity to create value is limited. complemented with better infrastructure. While logistics service providers are struggling to keep pace with the growth. Players now have the opportunity to leverage economies of scale.Extensive fragmentation meant the incapacity of industry players to develop the industry as a whole and poor support infrastructure. ports and telecom. logistics service users with limited or no outsourcing are finding it increasingly difficult and / or undesirable to manage this non-core activity inhouse. At the same time. However. to provide integrated logistics solutions which are cost effective.is worst placed to serve these needs. There is significant current and planned investment in infrastructure to the tune of (INR 15 trillion) over the next few years and an increased emphasis on public-private partnership. The result is a wide need gap that is seemingly widening much faster than it is being filled.

6 A look at the financials of a set of 80 logistics companies in India across sectors reveals that manpower spends comprise 8-10 percent of overall sales of the sector. 7 . While rapid development across all dimensions of organizational capability will be required to achieve and sustain demand growth.Increasing trade Greater Greater economic activity outsourcing of manufactur -ing Gro t i tso rci g logistics Greater Prosprensity to outsourcing logistics Entry of MNCs Better enbling environment It is in this context that capability development of logistics service providers assumes critical importance. manpower development items (welfare.). This roughly translates to about an INR 500 billion spend on logistics manpower in the country annually. This share for the unorganized companies would expectedly be much less. manpower capabilities assume utmost 5 importances. training etc. Only about 13 -14 percent of the overall manpower costs are spent on nonsalary. logistics being a service industry. a number that will rise rapidly with exponential growth expectations in the sector. The sector currently employs about 40 million people.

In the next section. is likely to be a key impediment in the growth of the logistics sector in India. 8 . unless addressed urgently. could impact growth in industry and manufacturing sectors as well. This underscores the need for identifying areas where such manpower and skill gaps are critical. This gap. and the action that needs to be taken to bridge the gaps.As against this leading global logistics companies spend around 20 percent of their employee expenditure on non-salary items. These gaps are then prioritized to identify key focus areas. we analyze each segment of the Logistics sector in India to identify the skill gaps that exist in each. and in consequence. and developing focused action plans to improve the situation. This lack of focus on developing manpower and skills for the logistics sector has resulted in a significant gap in the numbers and quality of manpower in the sector.

To perform continuous business improvement in order to meet and exceed customer expectation. through total commitment to customer service. Vision To become a leading freight. the supply chain is an integral part to the success as same as the 9 . with superior financial results. To be the recognized industry leader. transportation. and correct documentation in case of deviations. the answer is: ³Leadership. b. Decisions can impact the success of the company as much as the performance of the supply chain. To create sustainable business growth in order to enhance the prosperity of employee and benefit shareholders. clearing and logistics company in the Middle East. a. Best Processes. Communications and Systems in sustained growth and profitability. Innovation and Quality Solutions´ What Shree Logistics does:  Freight Movement  Cargo/ Freight Management Solutions  Full Truckload & Solution Providers  Contract Packaging & Other Service Vision and Mission Shree Logistics: Best People. To solve reliable transportation and logistics services to the needs of the business community. Mission To set the standard for excellence in global logistics through total commitment to quality in people and customer service. No matter what industry or region of the world other organization do business in. undamaged goods. Best Value. in the support and development of our People. Reliable services means ontime delivery. by maintaining our uncompromising integrity.COMPANY PROFILE When it comes to supply chain management.

focus on main areas they are: a. dedicated to helping freight. integrated freight and logistics solutions to clients in timesensitive. in an array of different market sectors. information management. c. Shree Logistics serves more than 20 client companies. This department has the expertise that allows them to prepare and process the documentation and 10 . service-critical businesses. nationally. and distribution centres to sophisticated forecasting. SHREE Logistics Service Today. Main motive is to provide integrated solutions from managing transportation. Freight Forwarding Departments typically arrange cargo movements to an international destination. Shree Logistics . every challenge to provide a custom solution that works best for customer. Shree Logistics employ many professionals in their branch offices and in fields (Ports).products. 12 The organiza tion mission is to provide best value. satisfying customer needs has been the driving force behind every Shree Logistics employee. and network consulting services. b. transportation. Young. Today. And always asking. and the people. was formed to build on the global distribution experience to help other companies lower distribution costs while improving customer service and brand loyalty. inventory. Our clients trust us and depend on our Best People and Best Processes to help them succeed. clearing. Analyzing every opportunity. d. the services. Shree Logistics is a technology-based company providing customized solutions that transform distribution to a source of competitive advantage. Finding solutions that optimize cost and service. and passionate: their humble beginnings . how can we serve you better? e. energetic. Partnering to seeking the right answers. forwarding and logistics needs. professional. Organization tries to leverage and continuously improve the capabilities. In 2002. Shree Logistics provide these services around nationally. Customer service to a higher level. Shree Logistics. Organization Functions: a.

perform related activities pertaining to international shipments. Ensuring cost effective and secure solutions to small shippers with sufficient cargo to utilize their own dedicated units. freight forwarder array. ii. excise and insurance requirements. Taking account of climate. sea. Obtaining. Arranging appropriate packing. and road. 11 . Offering consolidation services by air. using the services of shipping lines. iv. climate. checking and preparing documentation to meet customs. packing specifications and compliance with overseas countries regulations and fiscal regimes. Taking into account the type of goods and the customer¶s delivery requirements. Arranging payment of freight and other charges or collection of payment on behalf of the client. the role may also involve managing staff and overseeing activities within a department or specializing in a particular area. enabling real time tracking and tracing of goods. nature of goods and cost. delivery or warehousing of goods at their final destination. Researching and planning the most appropriate route for a shipment. cost transit time and security. Transmitting data by internet and satellite systems. iii. importer or another company or person. Liaising with third parties to move goods by road. such as sea freight or air freight. sometimes including dealing with packing and storage. the best means of transport. terrain. Functions: i. airlines or road and rail freight (Indian Markets) operators. weight. including the production of management reports and statistical and unit cost analysis Acting as consultant in customs Maintaining current knowledge of relevant legislation. political situations and other factors that could affect the movement of freight At more senior level. Acting as broker in customs negotiations worldwide to guide the freight efficiently through complex procedures Arranging courier and specialist hand carry services Maintaining visibility and control through all phases of the journey. Arranging charters for large volumes out of gauge or project movements by air and sea. Taking account of the perishable or hazardous nature of the goods. Arranging insurance and assisting the client in the event of a claim. A freight forwarder organizes the safe efficient movement of goods on behalf of an exporter. air or sea in accordance with customer requirements.

the arrival. vii. The type of container and the number of containers that the shipper would like to take. ii. viii. vii. 12 . that he would like to export.b. iii. transshipment details and does the follow up. departure time. iv. Identifying the customers by the marketing person of this department. Preparation of various kinds of bill of entry and shipping bill. Prohibitions on imports and exports items. The documentation process and clearing activities are done by this department. provides information on the rates. iv. Procedures for assessment and payment of duties. ii. Functions i. place of exports. vi. vi. Listing out the transshipment details and do the follow up. Nature and description of documents to be filed with kinds of bills of entry & shipping bill. the schedules. Examination of merchandize at the customs stations. Scheduling the arrival and department time of the vessel ix. the product. Arrival and clearance of vessels. Enquire about the type and quantity of the cargo. The department also undertakes cargo booking. v. viii. Conversion of currency. Enquire about the place or commonly referred to as the destination port to which the shipper would like to export the cargo. c. Convincing the shipper of the services that company provides to be better than the other shipping service providers. Clearing and Forwarding (C & F) The main function of C&F department is to undertake the customs formalities on behalf of the exporters or importers. Determination of value for assessment. Analyzing the rate the shipper expects from his cargo movement . Logistics Field: Bulk Operations The main function in this department includes identifying the customers and collecting information about the amount of material to be exported. Functions i. v. iii. Informing the shipper the rate and negotiating with him. name of the ship.

a product does not have to have heavy packaging. Flat rack for over sized cargo ix. Because of container construction. This may be done to change type of conveyance. or to sort materials intended for different destinations or to combine material from different origin. A container varies in size material and construction. Refund procedures. An increasing popular method of shipment is containerization. Breakage ii. 40 foot refrigerated containers/ reefers x. d. Cross docking ± Containerization Cross docking is a practice of logistics of unloading materials from an incoming semi trailer truck and loading these materials to outbound trailers or rail cars. Moisture iii. Containers can take case of most of 4 main packing problems. Open top containers viii. 45 foot & Reefers) 13 . it gives protection against: i. High cube containers (40 foot. Pilferage and Theft There are mainly 2 types of containers v.ix. A container is a large box made of durable material such as steel. appeals and revision petitions. Dry Containers vi. Check offences under the act xi. plywood and reinforced plastics. with little or no storage in between. Special Purpose Containers Types / Size 20 Foot Dry 40 Foot Dry 45 Foot Dry vii. Its dimension is typically 8 foot high and 8 foot wide lengths usually varying. aluminium. Temperature controlled iv. Re-importation and conditions for free re-entry. x. A container can accommodate most cargo but is most suitable to packages of standard size and shape.

logistics. Firm comprises of 12 employees for internal works and other team for activities including freight forwarding. as goods are being stocked in different warehouses. and is based on the customer requirements. Warehouse activities are being outsourced based on the demand situations. 14 . and all other employees report to him. Organization acts as a 3PL for other firms on behalf of carry/ forward.Organization Structure Organization is headed by Organization Head. logistics. clearing and forwarding.

´ Research Problem: The need for the study was to assess the effectiveness of Logistics Management in the Shree Logistics.Objective of the Study: ³ To understand the effectiveness of logistics management at Shree Logistics and to know about Logistics Industries. employee efficiency in general. There are innumerous logistics firms in Mumbai region which have similar operations as that of Shree logistics . in which Shree Logistics are at present in business were collected from other similar firms in the industry. Other indicators for the freight and warehouse divisions are lead-time. The organization also needs relevant data as to how it can improve its management policies in order to gain future market share. Research Methodology: The type of research is analytical. The indicators selected are ease of service. compared with other organization in the same industry. Network Design etc. time elapsed in transit. 15 . Navi Mumbai. Sample Selection: Convenience sampling (non probability method) is used for study the operations of Shree Logistics are mainly concentrated at large scale JNPT and BPT and having its branch office in Vashi. Cross docking. inventory management. Data regarding the division of logistics management such as Freight. customer service. operating cost and customer satisfaction. client handling. As to my f study I believe I have selected the right mix of techniques for the comprehensive approach. which can be suited well for the organization. The collected data was analyzed and performance o Shree Logistics was evaluated. product availability.

The topics covered are with decisions of each operational area. inventory.  Secondary Data: Books of Logistics Management for literature reference. Internet Web Portals.Method of Data Collection:  Primary Data: The major tool used was interview with managers and staff of the branch office. The questionnaire comprises of fourteen questions with subparts for each. questionnaire was developed focusing various aspect. Statistical Tools:  Percentage Analysis  Bar Diagrams  Pie Charts Data Analysis and Interpretation The data collected through the questionnaire are analyzed to know about the respondents opinions about various particulars asked in the questionnaire. Websites of each firm. profitable area in operation. catering location. employee numbers of each firm. No. service offering. Service Percentage 1 2 3 4 5 Freight Warehousing Crossdocking Network Design Value Adding 100 89 88 66 98 16 . organizational effectiveness. product availability and customer satisfaction. The data collected from the questionnaire was entered into spread sheet and the data has been interpreted. location.Service Offer Sr. Company Brochures. a) Which are the logistics services organizations offers? Table .

C t Servi e Offer 100% 90% 80% 70% 60% 50% 40% YES 30% 20% 10% 0% The bar chart above shows the service offer of each organi ation. The chart shows that 100% of the respondents provide freight service and al ost 90% provide Warehousing and Crossdocking. It includes packaging. which represents 98% of the sample. Other service includes value adding. labeling etc. b) What is the area of activit that organi ations feel is the best in their service? Table. Onl 66% were providing service of Network Design. No.Best Activit Sr. Servi e Percentage 1 2 3 4 5 Frieght Warehousing Crossdocking Network Design Value Adding 98 86 87 80 97   O 17 .

Chart -Best Activit Efficiency level in service 100 90 80 70 60 50 40 30 0 10 0 Efficie cy level in se vice The bar chart above shows the best activit which organi ation fe in their operations. There is only a minor activity based on network design with 80%. Most of the organi ations have a mi ture of all the activities in their day to day and 97% of organi ation says other activities bring in more revenue and the best of their activities. which includes packaging. labeling etc. Another significant area is Crossdocking with 87% as best activity. c) Number of employees in each type of the service rendered of the organi ations Table-1 Employees £ ¢ ¡ 18 . The els bar chart shows 98% of organi ations have freight in the predominant area. followed by 86% of warehousing.

Of People In Percentage 10 20 14 16 2 38 Chart-Employees Shree L gistics The charts above shows the comparison of employees in each functional division of 19 § ¦ 5 0 35 30 5 0 15 10 5 0 ¤ ¤ ¥ ¥ Othe Orgs .No. Departments In Organi ations 1 2 3 4 5 6 Top Management Operations Accounts / Finance Marketing Human Resource Documentaion/Others No. Of People In Percentage 9 13 11 13 9 45 Table-2 Employees in Shree Logistics Sr.No.Sr. Departments In Organi ation 1 2 3 4 5 6 Top Management Operations Accounts / Finance Marketing Human Resource Documentaion/Others No.

Marketing comprises of 16% working in the area.Freight 10 Shree Logistics 9 Profit Scale Industry Average Profit 8 6 5 5 6 0 Warehousing Crossdockin g 5 Network Design 0 6 Other 20 . d) Which division of logistical activity earns the maximum rate of profit for each organization on a scale of 1-10 and overall profit of each organization? Table -Maximum Rate of Profit (Shree Logistics Compared with Industry Average) Profit Scale 1. Documentation also needs to be further strengthened. This comprises of only 38% and industry standards are of 45%.organization with Shree Logistics. followed by 20% for operations and industry standards has 13%. Human Resource has to be enhanced and need to be further improved or need to start in the organization. Human Resource comprises of 9% and other main area is documentation and workers in the areas of loading. The chart shows around 10 percentages of people belong to top management and industry standards has 9 percent. Most of the organizations have a mixture of top management with marketing in their activities and functional area.

where 1 denotes least profit and 10 denotes the service that fetches excellent profit.  I © ¨ 4 S ree Logistics profit scale stry rofit average 21 . The organization should implement more strategies to reach industry mark. e) Comparison of service offered by Shree Logistics and rating of other organization in the industry on a scale of 0-5. It is inferred that freight is giving ample amount of profit and Cross-Docking. Other including labeling and packaging has industry standards. The chart 7i shows industry average value is 8 for freight followed by 6 for warehousing. The chart shows Shree Logistics has ample amount of profit in Freight area followed by Crossdocking and other value adding activities with 9 and 6 in scale.Maximum Rate of Profit 10 9 8 7 6 5 3 2 1 0 The bar chart shows each organizations maximum rate of profit in each area on scale of 1-10.Chart.

Client handling is slightly low compared with industry standards.5 0 The chart shows Ease of Service is up to the mark. Customer service also has remarkable value compared with industry. Major area to look into is Website.5 3 2. Shree logistics have to start their own website and should try to give excellent service on website.Service Comparison (Scale 0-5) Ease Service Shree Logistics Industry Average 4.5 2 S ree logistics Industry average 1.Table. f) What is the significant lead-time for each service rendered with previous years data of 22  Ease of service Client andling Customer service website Employee efficiency  .2 Customer Service 4.5 1 0.5 4 of Client Handling 4 4.3 Website Employee Efficiency 0 3.5 for Shree Logistics and the industry standards is 4.3 4 3. Employee Efficiency is satisfactory compared with industry standards.6 4. it shows 4.8 Chart-Service Comparison 5 4.5 4 3.

each organi ation? Table ± Lead Time in Days Lead Time in Freight Days(LT) Shree Logistics Industry Average 23 21 Warehousing Crossdocking Network Design Other 0 25 0 21 22 30 12 24 Chart ± Lead Time in Days 30 25 20 15 10 Industry verage 5 0   hree gistics  23 .

The above chart shows the service executed last year in logistics area and the significant lead time of each area. While comparing with industry standards Freight is dominating and similarly the main lucrative area is other (Packaging. Organizations lead-time is excellent as compare to the industry average . g) Average number of customer complaints generated and industry average. The chart shows freight service jobs has been executed with average leadtime of 21 days. Labeling etc. Table.Complaints (Shree Logistics with Industry Average) Shree Logistics Complaints year generated last 123 Industry Average 185 24 .). Similarly warehousing jobs lead-time is 22 days. has 21 days lead-time. Focus should be to increase more service.

No. customer satisfaction and other similar areas.Chart ± Complaints (Shree Logistics with Industry Average) Complaints g n at d last 200 a 180 160 140 120 80 60 40 20 0 S r ee Logistics Industry average The above chart shows average number of complaints.Customer Retention Sr. Organization heavily focused into the issue to reduce number of complaints arising in operations. 1 2 3 4 5 6 7 Service Customer Complaints given preference Phone Service Intimation Gifts Email Fax Other 100 100 100 5 100 10 100 Rating # " " !  100 c lai ts ge erate last year  25 . This has been achieved by increasing new modern methods and facilities to customers. h) How does the organization follow up to retain customers. Table. The complaints for Shree Logistics is 123 and whereas to industry average is around 185 in number.

Chart.Customer Retention Rating 120 100 80 60 40 20 0 rating 26 .

Down sizing of personnel in the Finance and Accounts section and deploying them for the HR function separately is recommended.Findings i) The quality of service as rated is above average in the case of Shree Logistics compared to industry. Design of new warehouse areas and proper allocation of work with more sophisticated software facility can be done through outsourced way during implementation. v) Rearrangement of employees may be a better solution. ii) Pricing of service is satisfactory. vii) Service offer presently has good impact with other organizations service offers. Present employee strength is satisfactory compared to other organization but more focus should be made to documentation and human resource areas where the firm has lesser employees compared to other organizations. Company can further 27 . But the organization should continuously try to improve the quality aspect as is being done by other players in the field. Cross docking. which organization can further enhance with proper management. Continuous improvement is a must so that the customers will prefer Shree Logistics as their first choice in Logistics and Freight industry category. iii) Network Design is an area that the organization should not start immediately due to low rate of returns is recorded as the industrial average. This can be achieved with more modern equipments and proper guidance to employees and the rating can go high to excellent service. employee efficiency and customer service is having remarkable difference from the industry standards. The main focus need to be on the ease of website and client handling . The remarkable areas are Freight. vi) The organization ease of service. From the data we can infer that areas which need to be improved are Website and client handling. and Value Adding. iv) Operation with other logistical providers should be given more preference to achieve cost effectiveness. This is quite a necessity as otherwise the figures may fall down.

Sales Agents and least preferred methods are Fax and Gifts. xiii) The efficient methods for retaining customers are Phone. viii) As logistics industry is concerned Freight is the dominant service followed by Warehousing and Cross-Docking. Email. xii) Freight Service when compared with other industry freight service has got more value. x) Organization profit is good compared to industry standards for freight and can further work on warehousing. ix) Freight and Value Adding is considered to be the best service which organizations offer in industry. Another major observation is about Network Design. the organization needs to further improve. xi) Commenting on ease of service.enhance operations of Value Adding through proper methods. Another favourable area as mentioned earlier is Value Adding and it shows a difference of 447 works done compared to industry standards. This shows a difference of 2 points from industry standards. Whereas for Cross Docking it shows same as to industry standards. Warehousing has a difference of 30 and is negligible but Cross-Docking need to be reviewed. So that the organization should start to provide warehousing services to the customer. 28 . it has low value and no organization feels it to be lucrative area in industry. website and employee efficiency. Another important area where organizations feels very lucrative is Value Adding .

more focus should be given to customer delight and cost effectiveness. iii) Decision making is quite effective and can be followed for future operations. vi) Client handling and service need to be followed in the same way and can be further enhanced with more support. v) Quality of service can be further enhanced to increase customer delight. This can be achieved by proper guiding of employees and other workers in the logistical area. 29 . iv) Operations with other logistical providers need to be enhanced further for operational effectiveness. This can lead to further rapidity for operations.Suggestions i) Organization can further strengthen the employee strength in the documentation department. ii) Organization can initiate Human Resource Department to further enhance employee motivation. This will have favourable impact for the operational as well as total strengthening of organization.

 Most of the questionnaire answers were filled over internet email facility.  Certain monetary values were not being filled by organizations. therefore contact was through phone and emails.Limitations of Study:  A few organizations did not publish the exact values for each question especially in sales turnover and other similar figures. 30 .

Conclusion The universe everyday is witnessing unimaginable growth in majority of the industries. the company is likely to reduce the profitability but with proper management of operations and by proper customer desired services. As far as Shree Logistics is concerned it can be stated that through its excellent service and aggressive logistics service. The organization now has the value of being an ultimate service provider for Freight . team spirit etc can be generated. The organization can increase the market share by improving with more state of art technology. increased loyalty. several favourable impacts such as increase in output per employee. the management can lead Shree Logistics to the top most position when bench marked in the coming years. On implementation of the above recommendations. More importance is to be given for HR development by having a separate department for it. Joint operational ventures for developing the customized services for its steady growth. organization has shown a noticeable increase in the market share. 31 . The present scenario and the future of the organization with regard to the management are satisfactory. Worldwide logistics industry is distinguished by fast technological advances and is growing rapidly than most other industries over the past years. However. there are some areas where the company is not at the top-most position but it can certainly gear up in the near future and is committed to acquire that spot. With the development of such a department. state of art technology providers for other organizations. and also effectively utilizing its alliances it can maintain and improve the performance. Cross-docking and Value Adding as per customer needs. Transportation. Shree Logistics has come a long way from being just a service provider. With stiff competition around. The logistics industry is one such industry that is rapidly growing. The organization has enormous opportunities to grow beyond the expectations. The organization can diversify into related other business areas like Warehouses for lease to other organizations.

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C.com/Top/Business_and_E conomy/Services/Logistics iii) http://www. and John Joseph Coyle. methods and techniques.sg/images/service_logistics_img1.jpg ii) http://www.indexuae.Adding Networks: Written by Martin Christopher. New Age International 2.com 34 . Logistics and Supply Chain Management: Creating Value . Websites: i) Source: http://www.com. The Management of Business Logistics ± 7th Edition: Written by Edward J.idsc. John Langley. 4. Bardi . Research Methodology.Bibliography 1. 3. Bowersox and David. Logistical Management ± Tata McGraw 2000 Edition: Written by Donald. C.google. Kothari. Closs. R.

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