1

CHAPTER – 1
 INTRODUCTION OF THE STUDY
 SCOPE OF THE STUDY
 OBJECTIVES OF THE STUDY
 LIMITATIONS OF THE STUDY

1.1 INTRODUCTION
 2

The purpose of this project is to introduce the concept of the Logistics Management and
to provide the logistics executive with a framework for its implementation. 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. A professional working in the field of logistics management is
called a logistician.

Logistics as a business concept evolved only in the 1950s. This was mainly due to the
increasing complexity of supplying one's business with materials and shipping out
products in an increasingly globalized supply chain, calling for experts in the field who
are called Supply Chain Logisticians. 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. The
following discussion will focus on the planning, strategizing, controlling and
implementing Logistics Management in Ascent Logistics

1.2 OBJECTIVE OF THE STUDY

 3

• To know about Logistics Industry

• To compare the effectiveness of logistics management at Ascent Logistics and to

benchmark the organization with respect to the industry.

• To have a thorough understanding of how logistics industry works.

• To know whether the customers are satisfied with the existing range of service
pattern.

1.3 SCOPE OF THE STUDY:

 4

• This research is conducted to understand the effectiveness of Logistics

Management.

• To identify how Logistics is managed in Ascent Logistics.

1.4 LIMITATIONS OF THE STUDY:

 5

• The study is restricted to Chennai city

• The Sample size is small

• Ascent Logistics is still a new firm in the market

 6

CHAPTER - 2
 INDUSTRY PROFILE

 COMPANY PROFILE

 REVIEW OF LITERATURE

 RESEARCH METHODOLOGY

2.1 INDUSTRY PROFILE

 7

2.1.1 Logistics (Asia, Middle East)

Logistics is the management of the flow of goods, information and other resources,
including energy and people, between the point of origin and the point of consumption in
order to meet the requirements of consumers. Logistics involve the integration of
information, transportation, and inventory, warehousing, material-handling and
packaging. In terms of value, global logistics industry has been estimated to be more than
USD 235 billion and make up significant part of the GDP with regard to India. The
Middle East is currently India's top export destination for a burgeoning consumer
electronics sector. Exports reached $175 million in 2005-06, an increase of 96 percent
over the previous year, according to the Electronics and Computer Software Export
Promotion Council (ESC). The growing trade reciprocity with China, 63 percent of
respondents to a recent China supplier survey, Middle East Export / Import
Opportunities, cited the Middle East as the next "hot" import market for Chinese-
manufactured goods.

On the positive point of view, new opportunities are opening up for the sector. Trade
volumes both overseas and inland are growing very fast. The pace of growth in the
specialized sectors like Liquid Natural Gas (LNG), Containers, Goods, Electronic
Equipments etc. are comparatively much higher. Integrated logistics and multimode
transportation are opening up new business for logistics/ shipping companies.

2.1.2 Logistics Management and Logistics Management Software

 8

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 related information between the point of origin and the point of consumption in order
to meet customers' requirements. A professional working in the field of logistics
management is called a logistician.

Software is used for automating logistics activities which helps the supply chain industry
in automating the work flow as well as management of the system. Very few generalized
software are only available in the new market in the said topology. This is because there
is no common rule to generalize the system as well as work flow even though the practice
is more or less the same. Most 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 mainly in Conventional Departments and for Container Trucking.

a. Business Logistics
 9

Logistics as a business concept evolved only in the 1950s. This was mainly due to the
increasing complexity of supplying one's business with materials and shipping out
products in an increasingly globalized supply chain, calling for experts in the field who
are called Supply Chain Logisticians. 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.
In business, logistics may have either internal focus (inbound logistics), or external focus
(outbound logistics) covering the flow and storage of materials from point of origin to
point of consumption. The main functions of a qualified logistician include inventory
management, purchasing, transportation, warehousing, consultation and the organizing
and planning of these activities. Logisticians combine the professional knowledge of each
of these functions so that there is a coordination of resources in an organization. There
are two fundamentally different forms of logistics. One optimizes a steady flow of
material through a network of transport links and storage nodes. The other coordinates a
sequence of resources to carry out some project.

b. Production Logistics
 10

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 quantity and quality 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 non-value adding ones. Production logistics
can be applied in existing as well as new plants. Manufacturing in an existing plant is a
constantly changing process. Machines are exchanged and new ones added, which gives
the opportunity to improve the production logistics system accordingly. Production
logistics provides the means to achieve customer response and capital efficiency.
Production logistics is getting more and more important with the decreasing batch sizes.
Even a single customer demand can be fulfilled in an efficient way. Track and tracing,
which is an essential part of production logistics - due to product safety and product
reliability issues - is also gaining importance especially in the automotive and the medical
industry.

2.2 COMPANY PROFILE

 11

Introduction

ASCENT LOGISTICS involve in the area of Freight, Warehousing, transportation and

cross docking, now established a tie-up with its associates having vast experience and
excellent rapport with State and Central Government Offices to serve our client in the
areas of value added activities like Indirect Taxes such as Central Excise, Sales Tax and
DGFT matters thus increasing the scope of its operations

a. Vision

To become a leading freight, transportation, clearing and logistics company in India. To

be the recognized industry leader, through total commitment to customer service, by
maintaining our uncompromising integrity, in the support and development of our
People, Communications and Systems in sustained growth and profitability.

b. Mission
To provide timely, speedy and efficient service. To achieve 100% customer satisfaction.
To stay evergreen Organization in the field. To set the standard for excellence in logistics
through total commitment to quality in people and customer service, with superior
financial results.
 12

DETAILS OF SERVICES OFFERED

FREIGHT FORWARDING

• Arranging Freight forwarders from any corner of world into India.

• Pick-up from place of shipment and deliver at the door steps.

• Monitoring the movement of consignment during transit

• Updating Customers about the movement of consignment in transit.

CUSTOMS CLEARANCE - IMPORTS

• Filing of Bill of Entry

• Processing

• Inspection of consignment

• Execution of Bonds and Bank Guarantee’s as and when required.

• Clearance and delivery of goods.

• Arranging for Chartered Engineer’s Certificate in case of Import of Second Hand

Goods / Second Hand Capital Goods

CUSTOMS CLEARANCE – PROJECT IMPORTS

• Execution of Bonds

• Registration

• Filing of Bill of Entry

• Arranging Chartered Engineer for valuation

• Processing

• Clearance

• Follow-up for installation certificate from Customer

• Fulfilling of obligation to Customs after installation

 13

CUSTOMS CLEARANCE - EXPORTS

• Pick-up consignments from Customers place

• Offer for Inspection by Customs

• Arrange for sealing of Consignment

• Filing of Shipping Bill

• Processing of Shipping Bill

• Obtaining let-export Order

• Communicating to Customers

CUSTOMS CLEARANCE – RE-EXPORT AND RE-IMPORT

• Collection of Consignments along with related documents

• Filing of Shipping Bill / Bill of Entry as the case may be.

• Arranging for inspection with reference to Import / Export documents as the case may
be.

• Arranging for Chartered Engineers Certificate where ever necessary

• Processing of Shipping Bill / Bill of Entry as the case may be.

• Obtaining let-export order / Gate pass as the case may be.

• Arranging for delivery of goods.

 14

VALUE ADDED SERVICES.

• Assistance in getting warehouse licenses

• Assistance in getting registrations / permissions from STPI

• Assistance in getting permissions from Customs for STPI / 100% EOU.

• Assistance in getting Annexure – III from Central Excise to avail benefit of

notifications wherever necessary.

• Assistance in getting End use Certificates from Central Excise Department as per the
provisions of Notification No. 21/2002 to get benefit of Customs Duty.

• Assistance in canceling the End Use Bonds / P D Bonds / Undertaking Bonds etc.,
whether executed through us or through any other agent.

• Collection of Customs Duty Cheques / Drafts and documents from Customers place
or Bank as the case may be.

• Assistance in getting licenses from DGFT such as IEC, EPCG, Advance license for
Direct and Deemed Exports, or any other specific licenses.

• Assistance in getting in Duty Refunds including Project Deposits and EDD.

• Assistance in getting Duty Drawback under Section 74 and 75

• Assistance in obtaining SVB Circular – including filling SVB Questionnaire,

submission, site visit, follow-up and final order both at Chennai and Bangalore.
 15

2.3 REVIEW OF LITERATURE

LOGISTICS MANAGEMENT

a. Demand Chain Management

Understanding demand requires a comprehensive knowledge of your customers, You
should know what products / services are demanded by your customers; how do they
make their purchases, how often they order and what constraints they face on the
purchasing process. Very few companies have mastered this concept. Ascent Logistics
was able to know all the above concepts through considerable focus into customer needs
and grievances.

b. Achieving Competitiveness in Logistics, Freight, Supply Chain

Reduced lead time, inventories, lower operating costs, product availability and customer
satisfaction are the benefits which grow out of effective logistics and supply chain
management. The decisions usually carried on by Ascent Logistics; cover both the long
term and short term. Strategic decisions deal with the corporate policies, and look at
overall design and logistic chain structure. Tactical, Operational decisions are those
 16

dealing with everyday activities and problems of the organization. Change is the
inevitable factor for each and every day situation within and outside the organization. The
decisions must take into account the strategic decisions already in place. Therefore
organization must structure the logistics ideas through long term analysis and at the same
time focus on every time situations. Furthermore, market demands, customer needs,
transport considerations and pricing constraints are the factors in order to structure the
logistics, freight. Ascent Logistics realized the fact and are prepared to face any
unexpected situations like inflation/ deflation in the economy, price factors, climatic
problems etc.

c. Vendor Managed Inventory

Vendor managed inventory, coordinated by an integrated logistics system, allows
inventory to be optimized together with transportation. Ascent Logistics try to know the
product value as well as storage capacity (mainly warehouse – how much to outsource).
As a routine job the company collects information on consumption rate, current inventory
levels, forecasted demand and status of shipments. Thus the system can optimize the right
quantities of replenishments to be sent at the right time to ensure that service levels are
maintained while minimizing cost of inventory and transportation.
d. Mode of Transportation
Transportation generally is movement of product, goods, raw materials to different stages
in supply chain. Essentially in supply chain logistics plays a major role, the manner in
which product is moved from one location to another is through road, rail, truck, air, sea.
Ascent Logistics essentially uses four modes for their operation; they are road, rail, air
and sea. The goods being delivered to end customer is brought to port or to the place
through containers or other methods like wagons, or cold enclosures like frozen storage.
Ascent Logistics strategically manage the procurement, movement, and storage of
materials, parts and finished inventory through the organization and its marketing
channels. Essentially from companies’ angle, there are two categories, initially inbound
logistics, i.e., handling goods that are brought into the company, through road transport
and storing and making them available. Another main phase is the outbound logistics,
 17

taking the cargo or the goods through channels, and is being done with considerable
effort to various parts of the world as per the customer requirements.
i. Intermodal Transportation System Used
This is the use of one or more than one mode of transport to move a
shipment to its destination. Ascent Logistics use this in an efficient way.
Variety used is road and sea in the case of organization. Referring to
Global trade, this is the only option as factories and markets may not be
next to ports. It helps reduce cost in operation. Helps reduce cost that
cannot be matched by single mode. Essentially it is very convenient for
shippers as well as consignee.
ii. Attributes: The price charged is reasonable with regard to the consignee,
as organization has got a long term relation with all the customers. Usually
goods being transported are electronics and frozen stocks from warehouse.
The relevant focus is on warehouse, transportations services offered.
Service is another aspect which focuses the advanced need of the
customer, initially with proper timing maintenance, order management.

e. The Challenge Faced by Organizations

In today’s world, competence is taking on new dimensions. The ability to compete is
being determined by the degree of responsiveness to customers and key issues handling.
How fast you deliver the goods/ products, what the price paid by customers and what
value customer is getting throughout the service is considered in a schematic and ordered
way. Markets are quick demanding and customization of each logistics activities is
essential for each customer, and has become the essential factor in logistics management.
Ascent Logistics faces lot of ups and downs in each operation and improves operation on
each situation while dealing with each customer. Ascent Logistics dominant
improvement methods used are:

i. What are the customer expectations?

ii. How are your competitors performing in each aspect of operations?
iii. Determining the gaps in each phase and try to fill it.
 18

2.3.1 Studies on Inventory, Back Order, Lost Sales, Stock Outs, Packaging and
Packaging Materials.
a. Inventory
Inventory is a list for goods and materials, or those goods and materials themselves, held
available in stock by a business. Inventory are held in order to manage and hide from the
customer the fact that manufacture/supply delay is longer than delivery delay, and also to
ease the effect of imperfections in the manufacturing process that lower production
efficiencies if production capacity stands idle for lack of materials.
There are three basic reasons for keeping an inventory:
i. Time - The time lags present in the supply chain, from supplier to user at every
stage, requires that you maintain certain amount of inventory to use in this "lead
time"
ii. Uncertainty - Inventories are maintained as buffers to meet uncertainties in
demand, supply and movements of goods.
iii. Economies of scale - Ideal condition of "one unit at a time at a place where user
needs it, when he needs it" principle tends to incur lots of costs in terms of
logistics. So Bulk buying, movement and storing brings in economies of scale,
thus inventory.
[The Management of Business Logistics, Coyle, Bardi,
Langley]
b. Back Order
A company having to back order an item that is out of stock will incur expenses for
special order processing and transportation. The extra order processing traces the back
orders movement, in addition to the normal processing for regular replenishments. The
customer usually incurs extra transportation charges because a back order is typically a
smaller shipment and often incurs higher rates. The seller may need to ship the back
ordered item a longer distance. The seller may need to ship the back order by a faster and
more expensive means of transportation. We could estimate the back order cost by
analyzing the additional order processing and additional transportation expense. If
 19

customers always back ordered out of stock items, the seller could use this analysis to
estimate the cost of stockouts. The seller could then compare this cost with the cost of
carrying excess inventory.
[The Management of Business Logistics, Coyle, Bardi,
Langley]
c. Lost Sales
Most companies have competitors who produce substitute products, and when one source
does not have an item available, the customer will order from another source. In such
cases the stock out has caused a lost sale. The seller’s direct loss is the loss of profit on
the item that was unavailable when the customer wanted it. Thus, a seller can determine
the direct loss by calculating profit on one item and multiplying it by the number the
customer ordered.
E.g.: If the order was 100 units and the profit is 10$, the loss is 1000$.
If the effort is made by a sales man and if the effort is wasted and in that sense it is an
opportunity loss. Whether including such a cost is valid would depend upon whether the
company uses sales people in its marketing effort.
Another aspect is determining the amount of a lost sale may be different and difficult in
certain circumstances. Numerous companies customarily take orders by telephone. A
customer may initially just enquire about items availability without specifying how much
is desired. If an item is out of stock, the customer may never indicate a quantity and the
seller will not know the amount of the loss.

d. Stockout
Cost incurred to a firm when current inventory is exhausted for one or more items. Lost
sales revenue costs are incurred when the firm is unable to meet current orders because of
a stockout condition.
 20

e. Packaging and Packaging Materials

Mainly this is a main division in warehouses. Packaging interacts with the
logistics system in number of different and important ways. The size of and protection
afforded by the package affect the type of materials handling equipment used and the
level of product damage incurred. The package has an impact on the stacking height of
the product in the warehouse and thereby on the utilization and cost of the warehouse.
Packaging is quite important for effective damage protection, not only in the warehouse
but also during transportation. Packaging may contribute nothing to a products value but
its influence on logistics costs is considerable.
Packaging size may affect a company’s ability to use pallets or shelving or
different types of materials handling equipment. Many companies design packages that
are too wide or too high for efficient use of either a warehouse or transportation carrier.
So, coordinating packaging with warehousing and with transportation is quite important.
We need to note, poor packaging can contribute to higher handling charges and result in
lower future sales if the goods arrived damaged.
Two types of packing exist: consumer packaging and industrial packaging.
Consumer packaging provides information important in selling the product. i.e. giving the
product most visibility when it comes with others on the retail shelf. On the other hand
industrial packaging is of primary concern to the logistics.
Materials generally used in previous years was wood and other harder materials
for no breakage, but it added considerable shipping weight to the transport and it further
increased transportation cost. Generally new era has come up with efficient packaging
materials, organization nowadays use most cost effective packaging with focus on
security and minimizing cost. Cushioning materials protect the product from shock,
vibration, and surface damage during handling. Cushioning materials include shrink
wrap, air bubble cushioning, cellulose wadding, and plastics. Companies often use shrink
wrap for consumer packaged goods. Packaging also helped reduce pilferage and product
tampering in warehouse and during transport. Air bubble cushioning is made of plastic
sheets that contain air pockets. There are other factors while considering packaging they
 21

are environmental protection. They are considered in situations of perishable items like
food and drugs.
2.4 RESEARCH METHODOLOGY

Research methodology is the systematic design, collection, analysis and reporting

of data and findings relevant to a specific marketing situation facing a company. It may
be understood as a science of study how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them.
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific investigation. The advanced learner’s Dictionary of current
English lays down the meaning of research as “A careful investigation or inquiry
especially through search for new facts in any branch of knowledge.”
Redman and Mory defines research as “A systemized effort to gain new
knowledge.”

D.Selsinger and M.Stephenson in the Encyclopedia of social sciences define

research as “the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art.

2.4.2 RESEARCH DESIGN:

A research is purely and simply the framework or plan for a study that guides the
collection and analysis of the data. The objective of the study has been achieved by
using both Primary and Secondary Data’s. The data’s obtained for the study was
primarily from field investigation carried out among the employees of Ascent
Logistics, on the basis of an extensive questionnaire.

2.4.2.1 Qualitative approach:

 22

Qualitative approach to research is concerned with subjective assessment

of attitudes, opinions and behavior. Research in such a situation is a function of
researcher’s insights and impressions. Such an approach to research generates
results either in non-quantitative form or in the form which are not subjected to
rigorous quantitative analysis.

2.4.3: DATA COLLECTION:

The type of data collection adopted for this research was primary data. Data was
collected from the employees personally with the help of questionnaire. Hence, more
qualititative and better responses were obtained from the employees.

2.4.3.1 Collection of primary data:

The primary data was collected during the course of doing the research.
The data has been obtained through observation and direct communication with
respondents through personal interviews and questionnaire.

2.4.3.2 Collection of Secondary data:

Secondary data means data that are already available i.e., they refer to the
data, which have been already collected and analyzed by someone else. Here the
Secondary data has been taken from various sources. Secondary data may either
be published data or unpublished data. Usually published data are available in:
• Technical and trade journals.
• Books, Magazines and newspaper.
• Reports and publication of various associations connected with
business and industry, banks, stock exchanges.
• Reports prepared by research scholars, universities, Economies.
 23

2.4.4 POPULATION SIZE:

The population size of this research is the entire members working in the Ascent
Logistics
The members working in the Ascent Logistics are highly cooperative and have a good
communication within them.

2.4.5 Sample Unit:

Sample unit consists of the members of Ascent Logistics
2.4.6 Sample Size:
The numbers of respondents surveyed in Ascent Logistics are 30.
2.4.7 QUESTIONNAIRE DESIGN:

This method of data collection is very common and has been used to perform this
research. The questions were carefully framed keeping in mind the objectives of the
research. The questionnaire was prepared in an unbiased manner giving enough scope to
the employees to speak out what they feel. A total of 20 questions were asked in the
questionnaire.

Questionnaire type:

There are four types of Questionnaires, they are as follows:

 Non- disguised structured questionnaire
 Non- disguised non-structured questionnaire
 Disguised structured questionnaire
 Disguised non-structured questionnaire

The Non- disguised structured questionnaire is used for the study. This approach
employs a standardized questionnaire to collect the data on belief, feelings and attitudes
 24

from the respondents. So nothing about the purpose of study is concealed from the
respondents.

2.4.7.1 Types of Questions

The Questions are of two types, they are as follows:

• Open-ended questions
• Close-ended questions

2.4.7.1.1 Open-ended questions: These questions are used to get the

suggestion from the respondents in order to get feedback to the company.

2.4.7.1.2 Close-ended questions:

It is of two types, they are as follows
2.4.7.1.2.1 Dichotomous (Yes/No) question
In this type of questions the respondents are given two choices in
which the respondents has to select one. For this type of questions we can
apply statistical tools like internal estimate method.
2.4.7.1.2.2 Multiple choices questions:
In this type of questions the respondents are given 4-5 choices in
which the respondents has to select one. For this type of questions we can
apply statistical tools like Chi-square and weighted average method.

2.4.8 STATISTICAL TOOLS USED:

The collected data is processed, analyzed and interpreted to obtain a certain level
of quality in the analysis of data. Editing is the process by which data collected is
prepared for subsequent coding which in turn is the procedure of classifying the answers
to a question into meaningful categories. After data is collected, it is processed; various
suitable statistical techniques were used to obtain the results.
• Tabulation Method
• Percentage Method
 25

• Bar Diagram
a. Simple Bar Diagram
b. Multiple Bar Diagram
• Pie diagram

Statistical Tool applied for the project is

• Percentage Analysis Method.

2.4.8.1 Tabulation Method:

The data has to be presented in a tabular form in an orderly way before the
analysis and interpretation of data. Tabulation is defined as “the order of
systematic representation of numerical data and columns, designed to facilitate
the comparison between the figures.”
Tabulation is a statistical tool used for condensation of the data in a
statistical tool used for condensation of the data in a statistical process. Thus all
the data collected are tabulated for easy analysis.

2.4.8.2 Percentage Method:

Percentage method is used for analysis and interpretation for most of the
collected data. Further the data tabulated and classified under different heads for
administering the Percentage method. Percentages refer to a special kind of ratio,
which are used in making comparison between 2 or more series of data.
Percentages are used to describe relationships. It can also be used to compare the
relative terms, distributions of two or more series of data.
2.4.8.3 Bar Diagram:
Bar diagram is a popular form of diagrammatic representation. This
diagram consists of series of rectangular bars standing on a common base. This
comparison among the bars is only based on their lengths. The length of the bar
diagram is proportional to their magnitude.

2.4.8.4 Simple bar Diagram:

 26

A simple bar diagram represents single variables like sales, production,

profits, etc.

2.4.8.5 Multiple bar Diagrams:

Multiple bar diagram is used for comprising two or more sets of statistical
data. Bars are constructed side by side to represent the sets of values for
comparison.

2.4.8.6 Pie Diagram:

The pie diagram ranks its components and a circle can be divided in to
sectors. As their 360 degrees at the centers, proportionate sectors are cut taking
the whole data equal to 360 degrees.
 27

2.4.8.7 STATISTICAL TOOL APPLIED FOR THE PROJECT

2.4.8.7.1 Percentage analysis:

Percentage refers is a special kind of ratio. Percentages are used in
making comparison between two or more series of data. They are used to describe
relationship. More over percentages can also be use to compare the relative terms
of the distribution of two or more series of data.

Formula:

Percentage of Respondents = No. of respondents * 100

Total no. of respondents
 28

CHAPTER - 3
 DATA ANALYSIS AND
INTERPRETATION
 29

3.1 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. The data
collected from the questionnaire was entered into spread sheet and the data has been
interpreted. The questionnaire comprises of fourteen questions.
The topics covered are with decisions of each operational area, employee numbers
of each firm, service offering, organizational effectiveness and customer satisfaction.

a) Which are the logistics services organizations offers?

Table -3.1.1 Service Offer
Sl. No. Service Percentage
1 Freight 100
2 Warehousing 89
3 Crossdocking 88
4 Network Design 66
5 Value Adding 98

Chart-3.1.2 Service Offer

 30

The pie chart above shows the service offer of each organization. The chart shows
that 100% of the respondents provide freight service and almost 90% provide
Warehousing and Crossdocking. Only 66% were providing service of Network
Design. Other service includes value adding, which represents 98% of the sample. It
includes packaging, labeling etc.

b) Operating with other logistical providers and reasons for decisions.

 31

Table -3.2.1 Operate With Logistical Providers

Sr. No. Decisions Percentage

1 Operational Stability 11
2 Cost Effectiveness 10
3 Customer Needs 36
4 Other 96

Chart-3.2.2 Operate With Logistical Providers

 32

The pie chart above shows the operational decisions and reasons for operations with
other logistical providers. The chart shows that 96% of the respondents operate with
other service providers for different reasons like coordination, clearance, bulk
operations etc. Almost 36% have operations with other providers as per customer
needs. Only 11% and 10 % were providing service along with other providers for the
purpose of operational stability and cost effectiveness respectively. It is stated that
96% of organizations operate with other logistical providers and remaining 4% as
standalone.

C) Which is the area of the activity, that organizations feel best in their service?
 33

Table-3.3.1 Best Activity

Sl. No. Service Percentage
1 Freight 98
2 Warehousing 86
3 Crossdocking 87
4 Network Design 4
5 Value Adding 97

Chart -3.3.2 Best Activity

 34

The pie chart above shows the best activity which organization feels in their operations.
The pie chart shows 98% of organizations have freight in the predominant area, followed
by 86% of warehousing. Another significant area is Crossdocking with 87% as best
activity. There is only a minor activity based on network design with 4% in pie graph.
Most of the organizations have a mixture of all the activities in their day to day and 97%
of organization says other activities bring in more revenue and the best of their activities,
which includes packaging, labeling etc.
 35

d) What are the locations to which the company caters to?

Table – 3.4.1 Catering Locations

Sl. No. Catering Locations Percentage
1 Within India 80
2 Outside India 20

Chart – 3.4.2 Catering Locations

 36

Catering Location

Outside India
20%

Within India
Outside India

Within India
80%

The chart shows 100% of organizations cater to consumers of which 80% are provided to
customers within India and 20% to customers who are outside India.

e) Which division of logistical activity earns the maximum rate of

profit?
 37

Table – 3.5.1 Maximum Rate of Profit (Ascent Logistics)

Freight Passenger Warehousing Network Cross

Profit Design dock Transportation Other
Scale
Ascent 10 5 10 5 10 10 10
Logistics

Chart – 3.5.2 Maximum Rate of Profit (Ascent Logistics)

 38

Ascent Logistics

12
10
8
6
4
2
0

n
t

er
g

n
gh

ge

tio
sin

in

ig

th
ei

ck

es

ta
en

O
ou
Fr

or
Do

D
ss

eh

sp
k
Pa

or
s
ar

an
os

tW
W

Tr
Cr

Ne
The bar chart shows each organizations maximum rate of profit in each area on scale of
1-10, where 1 denotes least profit, 5 denotes average profit and 10 denotes the service
that fetches excellent profit. The chart shows Ascent Logistics has ample amount of profit
in Freight, Transportation, Warehousing, crossdocking and other value added activities.
Other areas such as Passenger and Network Design fetch average profit.

F) How does the organization follow up to retain customers.

 39

Table-3.6.1 Customer Retention

Sl. No. Service Rating

1 Customer Complaints given preference 100
2 Phone 100
3 Service Intimation 100
4 Gifts 3
5 Email 100
6 Fax 11
7 Other 100

Chart-3.6.2 Customer Retention

 40

The above chart shows preference of complaints and how organization follow up to retain
customers. Its been noted that cent percent of organization follow up with customers for
customer complaints. Most of the preferable methods for contacting customers for new
service intimation and customer realtionship are telephone, email and other methods like
marketing / sales, customer office visit with 100 rating. The least preferred are gifts and
fax with 3 and 11 in rating.

3.9 CHI SQUARE ANALYSIS

Logistics Customer Profitability Total

 41

Management Service
Good 12 2 14
Average 3 10 13
Bad 0 3 3
Total 15 15 30

Setup Hypothesis:

Null Hypothesis (H0): There is no association between Customer focus & Profitability

Alternative Hypothesis (H1): There exists some association between Customer focus &

Profitability.

Chi Square Table:

Oi Ei O i – Ei (Oi – Ei)2 (Oi –
Ei)2/ Ei

12 7 5 25 3.57

3 6.5 -3.5 12.25 1.88

0 1.5 -1.5 2.25 1.5

2 7 -5 25 3.57

10 6.5 3.5 12.25 1.88

3 1.5 1.5 2.25 1.5

Total  13.9

(Since the Value of Ei is more than 5)

Calculation of Table value:

 42

Degree of Freedom, v = (r-1) (c-1)

v = (3-1) (2-1)

=2

Consider the level of Significance as 5% i.e., 0.05

Therefore, the Chi – Square table value for LOS (0.05) at d.f, v = 2 is,

χ2 tab = 5.99

Comment:
Here, Chi – Square Calculated Value is >than Chi – Square Table Value

So, Reject H0

i.e., there exists some association between Customer service & Profitability.

3.9.2 WEIGHTED AVERAGE METHOD

Variables 1 2 3 Weighted Average

 43

Sales Activities 1 12 2 10.33

Technical Support 2 2 11 12.33
Customer Service 13 1 1 6

The above table is used to analyze the weighted average of the Strategy involved in the

Logistics Management. The Calculation is as follows:

Calculation:
Weighted Average = (1*1) + (12*2) + (2*3) / 3

(For Sales Activites) = 10.33

Similarly,

For Technical Support = 12.33

For Customer Service = 6

Result:

Therefore from the above calculation it is clear that the Weighting Average

method used for evaluate a Strategy in the Logistics Management is 6.

(Since the lower WA has Higher Weightage)

 44

CHAPTER – 4
 FINDINGS
 SUGGESTIONS

 CONCLUSION

4.1 Findings

i) The quality of service as rated is above average in the case of Ascent Logistics
compared to industry. But the organization should continuously try to improve
the quality aspect as is being done by other players in the field. This is quite a
necessity as otherwise the figures may fall down. Continuous improvement is
a must so that the customers will prefer Ascent Logistics as their first choice
 45

in Logistics and Freight industry category. This can be achieved with more
modern equipments and proper guidance to employees and the rating can go
high to excellent service.

ii) Pricing of service is satisfactory, which organization can further enhance with
proper management. Present employee strength is satisfactory compared to
other organization but more focus should be made to documentation areas
where the firm has lesser employees compared to other organizations.

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. Design of new
warehouse areas and proper allocation of work with more sophisticated
software facility can be done through outsourced way during implementation.

iv) Decision making is excellent for organization with respect to other

organization in the industry.

v) Operation with other logistical providers should be given more preference to

achieve cost effectiveness.

vi) The organization client handling, ease of service and customer service is
having remarkable difference from the industry standards. The main focus
need to be on the ease of website and employee efficiency. From the data we
can infer that areas which need to be improved are Website and employee
efficiency. Employee efficiency can be improved with a proper Human
Resource department.

vii) Service offer presently has good impact with other organizations service
offers. The remarkable areas are Freight, Crossdocking, and Value Adding.
Company can further enhance operations of Value Adding through proper
methods.
 46

viii) As logistics industry is concerned Freight is the dominant service followed by

Warehousing and Cross-Docking. Another important area where an
organization feels very lucrative is Value Adding.

ix) It is observed that most of the organizations operate with other logistical
providers. 96% of organizations are doing it and remaining 4% organizations
stays independent. It is inferred that for efficient logistical activity, support
from other organizations is essential.

x) Tactical decisions are mostly followed by organizations followed by

operational and a few strategically.

xi) Freight and Value Adding is considered to be the best service which
organizations offer in industry. Another major observation is about Network
Design, it has low value and no organization feels it to be lucrative area in
industry.

xii) Organization can enhance operations to European areas and another major
favourable area is Africa. From data Lintas can get good market share if they
cater to African regions.

xiii) Organization profit is good compared to industry standards for freight and can
further work on warehousing. This shows a difference of 2 points from
industry standards. Whereas for Cross Docking it shows same as to industry
standards.

xiv) Commenting on ease of service, website and employee efficiency, the

organization needs to further improve.

xv) The efficient methods for retaining customers are Phone, Email, Sales Agents
and least preferred methods are Fax and Gifts.
 47

4.2 Suggestions

i) Organization can further strenghten the employee strength in the

documentation department. This can lead to further rapidity for operations.
 48

ii) Organization can initiate Human Resource Department to further enhance

employee motivation. This will have favourable impact for the operational as
well as total strenghtening of organization

iii) Decision making is quite effective and can be followed for future operations

iv) Operations with other logistical providers need to be enhanced further for
operational effectiveness, more focus should be given to customer delight and
cost effectiveness.

v) Quality of service can be further enhanced to increase customer delight.

vi) Client handling and service need to be followed in the same way and can be
further enhanced with more support. This can be achieved by proper guiding
of employees and other workers in the logistical area

vii) Ascent Logistics can enter other markets in India especially to Gujarat where
the potential of market is very high for Logistics industries and can even
diversify to other areas in logistics.

viii) Ascent Logistics can focus to other Asian regions for freight handling, as from
the data the potential market is high for those regions.

4.3 Conclusion
The universe everyday is witnessing unimaginable growth in majority of the
industries. The logistics industry is one such industry that is rapidly growing. Worldwide
logistics industry is distinguished by fast technological advances and is growing rapidly
than most other industries over the past years. With stiff competition around, the
company is likely to reduce the profitability but with proper management of operations
 49

and by proper customer desired services and also effectively utilizing its alliances it can
maintain and improve the performance. Joint operational ventures for developing the
customized services for its steady growth. The organization has enormous opportunities
to grow beyond the expectations.
Ascent Logistics has come a long way from being just a service provider. The
organization now has the value of being an ultimate service provider for Freight,
Transportation, Cross-docking and Value Adding as per customer needs. The present
scenario and the future of the organization with regard to the management are
satisfactory. The organization can increase the market share by improving with more
state of art technology. The organization can diversify into related other business areas
like Warehouses for lease to other organizations, state of art technology providers for
other organizations. More importance is to be given for HR development by having a
separate department for it. With the development of such a department, several
favourable impacts such as increase in output per employee, increased loyalty, team spirit
etc can be generated.
As far as Ascent Logistics is concerned it can be stated that through its excellent
service and aggressive logistics service, organization has shown a noticeable increase in
the market share. 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. On implementation of the above recommendations, the management can lead
Ascent Logistics to the top most position when bench marked in the coming years.